Document:

exv10w2

Exhibit 10.2

U.S. $1,500,000,000

CREDIT AGREEMENT

Dated as of May 1, 2006

among

THE WILLIAMS COMPANIES, INC.

NORTHWEST PIPELINE CORPORATION

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

WILLIAMS PARTNERS L.P.

as Borrowers

CITIBANK, N.A.

as Administrative Agent

CITIBANK, N.A.

BANK OF AMERICA, NATIONAL ASSOCIATION

and

JPMORGAN CHASE BANK, N.A.

as Issuing Banks

and

THE BANKS NAMED HEREIN

as Banks

 

CITIGROUP GLOBAL MARKETS INC.

and

BANC OF AMERICA SECURITIES LLC

Joint Lead Arrangers

CITIGROUP GLOBAL MARKETS INC.

BANC OF AMERICA SECURITIES LLC

and

THE ROYAL BANK OF SCOTLAND PLC

as Co-Book Runners

BANK OF AMERICA, NATIONAL ASSOCIATION

as Syndication Agent

JPMORGAN CHASE BANK, N.A.

THE BANK OF NOVA SCOTIA

and

THE ROYAL BANK OF SCOTLAND PLC

as Co-Documentation Agents

BNP PARIBAS

CALYON NEW YORK BRANCH

MERRILL LYNCH CAPITAL CORPORATION

and

WACHOVIA BANK, NATIONAL ASSOCIATION

As Managing Agents

 

 

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

	 	 	 	 	 
	SECTION 1.1. Certain Defined Terms
	 	 	1	 
	SECTION 1.2. Computation of Time Periods
	 	 	17	 
	SECTION 1.3. Accounting Terms
	 	 	17	 
	SECTION 1.4. Miscellaneous
	 	 	17	 
	SECTION 1.5. Ratings
	 	 	17	 

ARTICLE II

AMOUNTS AND TERMS OF THE REVOLVING CREDIT ADVANCES AND LETTERS OF
CREDIT

	 	 	 	 	 

	SECTION 2.1. Revolving Credit Advances and Letters of Credit
	 	 	18	 
	SECTION 2.2. Issuance and Addition of and Drawings and Reimbursement Under
Letters of Credit
	 	 	19	 
	SECTION 2.3. Making the Revolving Credit Advances
	 	 	23	 
	SECTION 2.4. Reduction of the Commitments
	 	 	25	 
	SECTION 2.5. Prepayments
	 	 	26	 
	SECTION 2.6. Increased Costs
	 	 	26	 
	SECTION 2.7. Payments and Computations
	 	 	28	 
	SECTION 2.8. Taxes
	 	 	29	 
	SECTION 2.9. Sharing of Payments, Etc.
	 	 	31	 
	SECTION 2.10. Evidence of Debt
	 	 	32	 
	SECTION 2.11. Fees
	 	 	32	 
	SECTION 2.12. Repayment of Revolving Credit Advances
	 	 	33	 
	SECTION 2.13. Interest
	 	 	33	 
	SECTION 2.14. Interest Rate Determination
	 	 	34	 
	SECTION 2.15. Optional Conversion of Revolving Credit Advances
	 	 	34	 
	SECTION 2.16. Illegality
	 	 	35	 
	SECTION 2.17. Additional Interest on Eurodollar Rate Advances
	 	 	35	 
	SECTION 2.18. Nature of Obligations
	 	 	35	 

ARTICLE III

DOCUMENTS AND CONDITIONS

	 	 	 	 	 

	SECTION 3.1. Closing Documents
	 	 	36	 
	SECTION 3.2. Conditions Precedent to a Revolving Credit Advance and an Issuance of
a Letter of Credit
	 	 	37	 
	SECTION 3.3. Effectiveness of Agreement
	 	 	38	 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

	 	 	 	 	 

	SECTION 4.1. Representations and Warranties of the Borrowers
	 	 	38	 

ARTICLE V
COVENANTS OF THE BORROWERS

	 	 	 	 	 
	SECTION 5.1. Affirmative Covenants
	 	 	41	 
	SECTION 5.2. Negative Covenants
	 	 	45	 

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ARTICLE VI

EVENTS OF DEFAULT

	 	 	 	 	 

	SECTION 6.1. Events of Default
	 	 	50	 
	SECTION 6.2. LC Cash Collateral Accounts
	 	 	52	 

ARTICLE VII

THE AGENT AND ISSUING BANKS

	 	 	 	 	 

	SECTION 7.1. Agent’s Authorization and Action
	 	 	53	 
	SECTION 7.2. Agent’s Reliance, Etc.
	 	 	53	 
	SECTION 7.3. Issuing Banks’ Reliance, Etc.
	 	 	54	 
	SECTION 7.4. Rights
	 	 	55	 
	SECTION 7.5. Indemnification
	 	 	55	 
	SECTION 7.6. Successor Agent 
	 	 	56	 
	SECTION 7.7. Bank Decisions 
	 	 	57	 
	SECTION 7.8. Certain Rights of the Agent
	 	 	57	 
	SECTION 7.9. Other Agents
	 	 	57	 

ARTICLE VIII

MISCELLANEOUS

	 	 	 	 	 

	SECTION 8.1. Amendments, Etc.
	 	 	57	 
	SECTION 8.2. Notices, Etc.
	 	 	58	 
	SECTION 8.3. No Waiver; Remedies
	 	 	60	 
	SECTION 8.4. Costs and Expenses
	 	 	60	 
	SECTION 8.5. Binding Effect; Transfers
	 	 	61	 
	SECTION 8.6. Governing Law
	 	 	64	 
	SECTION 8.7. Interest
	 	 	64	 
	SECTION 8.8. Execution in Counterparts
	 	 	65	 
	SECTION 8.9. Survival of Agreements, Representations and Warranties, Etc.
	 	 	65	 
	SECTION 8.10. Confidentiality
	 	 	65	 
	SECTION 8.11. Waiver of Jury Trial
	 	 	65	 
	SECTION 8.12. Severability
	 	 	66	 
	SECTION 8.13. Forum Selection and Consent to Jurisdiction; Damages
	 	 	66	 
	SECTION 8.14. Right of Set-off
	 	 	66	 
	SECTION 8.15. Termination of Security Documents and Pipeline Holdco Guaranty
	 	 	67	 
	SECTION 8.16. Termination of 2005 Credit Agreement
	 	 	67	 

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Schedules and Exhibits

	 	 	 

	Schedule I

	 	Bank Information
	Schedule II

	 	Notice Information for the Borrowers
	Schedule III

	 	Commitments
	Schedule IV

	 	Applicable Commitment Fee and Applicable Margin
	Schedule V

	 	Existing Subsidiary Debt
	Schedule VI

	 	Existing Projects
	Schedule VII

	 	[Reserved]
	Schedule VIII

	 	Existing Tolling Arrangements
	Schedule IX-1

	 	Limited Permitted Liens
	Schedule IX-2

	 	General Permitted Liens
	Schedule X

	 	Existing Letters of Credit
	Schedule XI

	 	Sale Leaseback Excluded Property
	Schedule XII

	 	Existing Financing Transactions
	 
	 	 
	Exhibit A

	 	Opinion of James J. Bender, Esq., General Counsel of TWC
	Exhibit B

	 	Opinion of Gibson, Dunn & Crutcher
	Exhibit C

	 	Form of Transfer Agreement
	Exhibit D-1

	 	Form of Notice of Letter of Credit
	Exhibit D-2

	 	Form of Notice of Revolving Credit Borrowing
	Exhibit E

	 	Form of Pipeline Holdco Guaranty
	Exhibit F

	 	Form of TWC Guaranty
	Exhibit G

	 	Form of Note

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CREDIT AGREEMENT

	     This Credit Agreement dated as of May 1, 2006 (as may be further amended,
modified, supplemented, renewed, extended or restated from time to time, this
“Agreement”), is by and among THE WILLIAMS COMPANIES, INC., a Delaware
corporation (“TWC”), WILLIAMS PARTNERS L.P., a Delaware limited partnership (“MLP”),
NORTHWEST PIPELINE CORPORATION, a Delaware corporation (“NWP”), TRANSCONTINENTAL
GAS PIPE LINE CORPORATION, a Delaware corporation (“TGPL”, and together with TWC, MLP
and NWP, the “Borrowers” and each, a “Borrower”), the Banks, CITIBANK, N.A.,
BANK OF AMERICA, NATIONAL ASSOCIATION and JPMORGAN CHASE BANK, N.A. (each, an “Issuing
Bank”), and CITIBANK, N.A., as administrative agent (together with any successor agent appointed
pursuant to Article VII, the “Agent”). In consideration of the mutual
covenants and agreements contained herein, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

     SECTION 1.1. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):

     “Acceptable Security Interest” in any property means a Lien granted pursuant to
a Credit Document (a) which exists in favor of the Agent for the benefit of itself, the Agent, the
Banks and the Issuing Banks, (b) which is superior to all other Liens,
except Limited Permitted Liens, (c) which secures the Obligations and (d) which is perfected and
is enforceable by the Agent for the benefit of the Agent, the Banks and the
Issuing Banks, against all other Persons in preference to any rights of any such
other Persons therein (other than beneficiaries of Limited Permitted Liens); provided
that such Lien may be subject to Limited Permitted Liens.

     “Added L/C Effective Date” has the meaning specified in Section 2.2(a)(2).

     “Added L/C Representations” means representations and warranties made in letter of credit
applications with respect to Added Letters of Credit that are in addition to or
inconsistent with the representations contained in Article IV.

     “Added Letter of Credit” has the meaning specified in Section 2.2(a)(2).

     “Additional MLP” means one or more master limited partnerships included in the
Consolidated financial statements of TWC to which TWC has transferred or shall transfer
assets other than assets of or Equity Interests in NWP, TGPL or any of their Subsidiaries.

     “Agent” means Citibank, in its capacity as administrative agent
pursuant to Article VII hereof and any successor Agent pursuant to Section 7.6.

     “Agreement” has the meaning specified in the first paragraph hereof.

     “Apco Argentina” means Apco Argentina, Inc., a Cayman Islands corporation.

     “Applicable Commitment Fee Rate” means the rate per annum set forth on Schedule
TV opposite the heading “Applicable Commitment Fee Rate” for the relevant Rating
Category applicable to TWC

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from time to time. The Applicable Commitment Fee Rate shall change when and as the
relevant Rating Category applicable to TWC changes.

     “Applicable Lending Office” means, with respect to each Bank, such Bank’s Domestic Lending
Office in the case of a Base Rate Advance and such Bank’s Eurodollar Lending Office in the case of
a Eurodollar Rate Advance.

     “Applicable Margin” means, for any Borrower, as to any Eurodollar Rate Advance or
Base Rate Advance to such Borrower, the rate per annum set forth in the table on
Schedule IV opposite the heading “Applicable Margin” (for the relevant Type of
Advance) for the relevant Rating Category applicable to such Borrower, provided that so long as MLP
is Unrated or has a rating lower than the rating of TWC, the Applicable Margin, as
to any Eurodollar Rate Advance or Base Rate Advance to MLP, shall be the
rate per annum set forth in such table opposite the heading “Applicable Margin” (for the relevant
Type of Advance) for the relevant Rating Category applicable to TWC. The Applicable Margin
determined pursuant to this definition for any Eurodollar Rate Advance or Base Rate Advance, as
applicable, for any Borrower shall change when and as the relevant Rating Category applicable
to such Borrower changes.

     “Asset” or “property” (in each case, whether or not capitalized) means any right, title or
interest in any kind of property or asset, whether real, personal or mixed,
and whether tangible or intangible.

     “Attributable Obligation” of any Person means, with respect to any Sale and Leaseback
Transaction of such Person as of any particular time, the present value at such time discounted at
the rate of interest implicit in the terms of the lease of the obligations of the lessee under such
lease for net rental payments during the remaining term of the lease (including any period for
which such lease has been extended or may, at the option of such Person only, be
extended).

     “Authorized Financial Officer” of any Person means the chief financial officer, chief
accounting officer, or the treasurer of such Person.

     “Authorized Officer” of any Person means the president, chief executive officer, chief
financial officer, the general counsel, any vice president, the secretary, the assistant secretary,
the treasurer, assistant treasurer, or the controller of such Person or any other officer
designated as an “Authorized Officer” by the board of directors (or equivalent governing body) of
such Person.

     “Available Amount” of any Letter of Credit means, at any time, the maximum amount available
to be drawn under such Letter of Credit at such time (after giving effect to any step
up provision or other mechanism for increase, if any, and assuming compliance at such time with all
conditions to drawing).

     “Banks” means the Persons listed in Part A of Schedule III and each
other Person that becomes a Bank pursuant to Section 8.5(a).

     “Base Rate” means a fluctuating interest rate per annum in effect from time to time, which
rate per annum shall at all times be equal to the higher of:

     (a) the rate of interest announced publicly by Citibank in New York, New York, from time to
time, as Citibank’s base rate; and

     (b) 1/2 of 1% per annum above the Federal Funds Rate.

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     “Base Rate Advance” means a Revolving Credit Advance that bears interest as provided in
Section 2.13(a)(i) (or, if Section 2.13(b) applies, that bears interest at 2% above the rate
provided in Section 2.13(a)(i)).

     “BofA” means Bank of America, National Association, a national banking association.

     “Borrowers” has the meaning specified in the first paragraph hereof.

     “Business Day” means a day of the year on which banks are not required or authorized to close
in New York City.

     “Business Entity” means a partnership, limited partnership, limited liability partnership,
corporation (including a business trust), limited liability company, unlimited liability company,
joint stock company, trust, unincorporated association, joint venture or other entity.

     “Capital Lease” means a lease that in accordance with GAAP must be reflected on a Person’s
balance sheet as an asset and corresponding liability.

     “Change of Control Event” means the occurrence of any of the following: (i) any Person (other
than a trustee or other fiduciary holding securities under an employee benefit plan of TWC or of
any Subsidiary of TWC) or two or more Persons acting in concert (other than any group of employees
of TWC or of any of its Subsidiaries) shall have acquired beneficial ownership (within the meaning
of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934),
directly or indirectly, of securities of TWC (or other securities convertible into such securities)
representing  50% or more of the combined voting power of all securities of TWC entitled to vote in
the election of directors, other than securities having such power only by reason of the happening
of a contingency, or (ii) the first day on which a majority of the members of the board of
directors of TWC are not Continuing Directors.

     “Citibank” means Citibank, N.A., a national banking association.

     “Code” means, as appropriate, the Internal Revenue Code of 1986, as amended, or any successor
federal tax code, and any reference to any statutory provision shall be deemed to be a reference to
any successor provision or provisions.

     “Co-Documentation Agents” means JPMorgan Chase Bank, N.A., The Bank of Nova Scotia and The
Royal Bank of Scotland PLC.

     “Commitment” means a Revolving Credit Commitment or a Letter of Credit Commitment.

     “Commitment Fee” has the meaning specified in Section 2.11(c).

     “Consolidated” refers to the consolidation of the accounts of any Person and its Consolidated
Subsidiaries in accordance with GAAP.

     “Consolidated Net Worth” of any Person means the Net Worth of such Person and its Consolidated
Subsidiaries on a Consolidated basis plus the Designated Minority Interests, if applicable, to the
extent not otherwise included. As used in this definition, “Designated Minority Interests” means,
as of any date of determination, the total value, determined in accordance with GAAP, of the
minority interests in Subsidiaries of TWC (other than MLP and its Subsidiaries) to the extent such
minority interests are owned by Persons other than TWC and its Consolidated Subsidiaries; provided
that any

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minority interest for which TWC or any of its Subsidiaries has an obligation to repurchase shall
not be included in “Designated Minority Interests”.

     “Consolidated Subsidiaries” of any Person means all other Persons the financial statements of
which are consolidated with those of such Person in accordance with GAAP.

     “Continuing Directors” means, as of any date of determination, any member of the board of
directors of TWC who:

     (1) was a member of such board of directors on the Effective Date; or

     (2) was nominated for election or elected to such board of directors with the approval of a
majority of the Continuing Directors who were members of such board of directors at the time of
such nomination or election.

     “Convert”, “Conversion” and “Converted” each refers to a conversion of Revolving Credit
Advances of one Type into Revolving Credit Advances of the other Type pursuant to Sections 2.14,
2.15 or 2.16.

     “Credit Documents” means this Agreement, the Guaranties, the Letter of Credit Documents, each
Letter of Credit, each Note, each Notice of Letter of Credit, each Notice of Revolving Credit
Borrowing, any security agreement or pledge delivered in order to comply with Section 2.5(c),
Section 5.2(m) or Section 6.2 and each document that amends, waives or otherwise modifies any
Credit Document, in each case at any time executed or delivered to the Agent, any Issuing Bank or
any Bank in connection herewith.

     “Credit Party” means each Borrower and, until the Pipeline Holdco Release Date, Pipeline
Holdco.

     “CUSA” means  Citicorp USA, Inc.

     “Debt” means, in the case of any Person, the principal or equivalent amount (without
duplication) of (i) indebtedness of such Person for borrowed money, (ii) obligations of such Person
evidenced by bonds, debentures, notes or similar instruments (other than surety, performance and
guaranty bonds), (iii) obligations of such Person to pay the deferred purchase price of property or
services (other than trade payables), (iv) obligations of such Person as lessee under Capital
Leases, (v) obligations of such Person under any Financing Transaction, (vi) any Attributable
Obligations of such Person with respect to any Sale and Leaseback Transaction entered into on or
after December 31, 2005, and (vii) obligations of such Person under guaranties in respect of, and
obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a
creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to
in clauses (i) through (vi) of this definition; provided that Debt shall not
include (1) Non-Recourse Debt, (2) Performance Guaranties, (3) monetary obligations or
guaranties of monetary obligations of Persons as lessee under leases (other than, to the extent
provided hereinabove, Attributable Obligations) that are, in accordance with GAAP, recorded as
operating leases, (4) Reclassified Tolling Arrangements, (5) any obligations of such Person under
volumetric production payment arrangements, (6) Financing Transactions in existence on December 31, 2005 and listed on Schedule XII, and (7) guarantees by such Person of obligations of others which
are not obligations described in clauses (i) through (vi) of this definition, and provided further
that where any such indebtedness or obligation of such Person is made jointly, or jointly and
severally, with any third party or parties other than any Subsidiary of such Person, the amount
thereof for the purpose of this definition only shall be the pro rata portion thereof payable by
such Person, so long as such third party or parties have not defaulted on its or their joint and

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several portions thereof and can reasonably be expected to perform its or their obligations
thereunder. For the avoidance of doubt, “Debt” of a Person in respect of letters of credit shall
include, without duplication, only the principal amount of the obligations of such Person in
respect of such letters of credit that have been drawn upon by the beneficiaries to the extent of
the amount drawn, and shall include no other obligations in respect of such letters of credit.

     “Default” means any event or condition that, upon the giving of notice or passage of time or
both, if required by Section 6.1, would constitute an Event of Default.

     “Designating Bank” has the meaning specified in Section 8.5(g).

     “Dollars” and “$” means lawful money of the United States of America.

     “Domestic Lending Office” means, with respect to any Bank, the office of such Bank specified
as its “Domestic Lending Office” opposite its name on Schedule I hereto or in the Transfer
Agreement pursuant to which it became a Bank, or such other office of such Bank as such Bank may
from time to time specify to the Borrowers and the Agent.

     “EBITDA” means, for any Measurement Period, the sum of (i) the Consolidated net income (or
loss) of TWC and its Consolidated Subsidiaries (other than MLP, the MLP’s Subsidiaries and the Non-
Recourse Subsidiaries, except and then only to the extent that TWC or a Subsidiary of TWC (other
than MLP, the MLP’s Subsidiaries and the Non-Recourse Subsidiaries) actually receives funds from
MLP, the MLP’s Subsidiaries or the Non-Recourse Subsidiaries as cash dividends or cash
distributions during such Measurement Period and has no obligation to return such funds at any
time) for such Measurement Period determined in accordance with GAAP plus (ii) to the extent included
in the determination of such net income (or loss), the Consolidated charges for such period for
EBITDA Interest Expense, depreciation, depletion and amortization, plus (iii) to the extent included in
the determination of such net income (or loss), the amount of any provision for income taxes and
franchise taxes, plus (iv) to the extent included in the determination of such net income (or loss),
the amount of any other non-cash charges, including asset impairments, write-downs or write-offs,
plus (v) to the extent included in the determination of such net income (or loss), the amount of
charges, fees or expenses associated with any repurchase or repayment of debt, including any
premium and acceleration of fees or discounts and other expenses, plus (vi) to the extent included in
the determination of such net income (or loss), but not to exceed $250,000,000 in the aggregate
over the term of this Agreement, the amount of damages, fines, penalties, charges, fees expenses
and similar sums incurred after the Effective Date in litigation, settlement or adjudication of
contingent liabilities relating to the legal and environmental matters described in TWC’s annual
report on Form 10-K for the year ended December 31, 2005, minus  (vii) to the extent included in the
determination of such net income (or loss), the amount of any benefit or credit from income taxes
or franchise taxes; provided that in determining such Consolidated net income and such Consolidated
charges, there shall be excluded therefrom (to the extent otherwise included therein) (a) pre-tax
gains or losses on the sale, transfer or other
disposition of any property by TWC or its Consolidated Subsidiaries (other than sales,
transfers and other dispositions in the ordinary course of business), (b) all extraordinary gains
and extraordinary losses, prior to applicable income taxes and franchise taxes, (c) any item
constituting the cumulative effect of a change in accounting principles, prior to applicable income
taxes and franchise taxes, and (d) any income (or loss), charges for interest, depreciation,
depletion and amortization, and other non-cash charges, associated with matters accounted for as
discontinued operations as of December 31, 2005.

     “EBITDA Interest Expense” means, for any Measurement Period, the gross interest expense
(determined in accordance with GAAP  and without duplication) of TWC and its Consolidated
Subsidiaries accrued for such period, including that attributable to the capitalized amount of
obligations

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owing under Capital Leases, all debt discount and debt issuance costs and commissions
amortized in such period and all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers’ acceptance financing and other fees and charges
associated with debt of TWC and its Consolidated Subsidiaries, but excluding such interest expense,
debt discount, commission, discounts and other fees and charges to the extent attributable to Debt
of MLP and its Subsidiaries that is not incurred under this Agreement, Reclassified Tolling
Arrangements or Non-Recourse Debt.

     “EDGAR” means the “Electronic Data Gathering, Analysis and Retrieval” system (or any successor
system thereof), a database maintained by the Securities and Exchange Commission containing
electronic filings of issuers of certain securities.

     “Effective Date” means May 1, 2006.

     “El Furrial” means WilPro Energy Services (El Furrial) Limited, a Cayman Islands
corporation.

     “Eligible Assignee” means (i) any Bank, (ii) any affiliate of any Bank that is consented to by
the Issuing Banks (which consent will not be unreasonably withheld), and (iii) any other Person not
covered by clause (i) or (ii) of this definition that is consented to by TWC, the Agent and the
Issuing Banks (which consents shall not be unreasonably withheld); provided that if any Event of
Default has occurred and is continuing, no consent of TWC shall be required; provided further that
neither the Borrowers nor any affiliate of the Borrowers shall be an Eligible Assignee.

     “Environment” shall have the meaning set forth in 42 U.S.C. §9601(8) or any successor statute
and “Environmental” shall mean pertaining or relating to the Environment.

     “Environmental Law” shall mean any United States local, state or federal, or any foreign, law,
statute, regulation, order, consent decree, written agreement with a Governmental Authority or
Governmental Requirement arising from or in connection with or relating to the protection or
regulation of the Environment including those laws, statutes, regulations, orders, decrees, written
agreements with a Governmental Authority and other Governmental Requirements relating to the
disposal, cleanup, production, storing, refining, handling, transferring, processing or transporting
of Hazardous Waste, Hazardous Substances or any pollutant or contaminant.

     “Environmental Permits” mean all material permits, licenses, registrations, exemptions and
authorizations required under any Environmental Law.

     “Equity Interests” means any capital stock, partnership, joint venture, member or limited
liability or unlimited liability company interest, beneficial interest in a trust or similar entity
or other equity interest or investment of whatever nature or any warrant, option or other right to
acquire any Equity Interest.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated and rulings issued thereunder from time to time.

     “ERISA Affiliate” of any Credit Party means any trade or business (whether or not
incorporated) which is a member of a group of which such Credit Party is a member and which is
under common control or is treated as a single employer with such Credit Party within the meaning
of Section 414 of the Code and the regulations promulgated thereunder.

     “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of the
Federal Reserve Board, as in effect from time to time.

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     “Eurodollar Lending Office” means, with respect to any Bank, the office of such Bank specified
as its “Eurodollar Lending Office” opposite its name on Schedule I hereto or in the Transfer
Agreement pursuant to which it became a Bank (or, if no such office is specified, its Domestic
Lending Office), or such other office of such Bank as such Bank may from time to time specify to
the Borrowers and the Agent.

     “Eurodollar Rate” means, for each Eurodollar Rate Advance comprising part of the same
Revolving Credit Borrowing for any Interest Period therefor, the rate per annum (rounded upwards,
if necessary, to the nearest 1/100 of 1%) appearing on Dow Jones Markets Page 3750 (or any
successor page) as the London interbank offered rate for deposits in Dollars at approximately 11:00
a.m. (London time) two Business Days prior to the first day of such Interest Period for a term
comparable to such Interest Period. If for any reason such rate is not available, the term
“Eurodollar Rate” shall mean, for each Eurodollar Rate Advance comprising part of the same
Revolving Credit Borrowing for any Interest Period therefor, the rate per annum (rounded upwards,
if necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the London
interbank offered rate for deposits in Dollars at approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period for a term comparable to such Interest
Period; provided that if more than one rate is specified on Reuters Screen LIBO Page, the
applicable rate shall be the arithmetic mean of all such rates (rounded upwards, if necessary, to
the nearest 1/100 of 1%).

     “Eurodollar Rate Advance” means a Revolving Credit Advance that bears interest as provided in
Section 2.13(a)(ii) (or, if Section 2.13@) applies, that bears interest at 2% above the rate
provided in Section 213(a)(ii)).

     “Eurodollar Rate Reserve Percentage” of any Bank for any Interest Period for any Eurodollar
Rate Advance means the reserve percentage applicable during such Interest Period (or if more than
one such percentage shall be so applicable, the daily average of such percentages for those days in
such Interest Period during which any such percentage shall be so applicable) under regulations
issued from time to time by the Federal Reserve Board (or any successor) for determining the
maximum reserve requirement (including any emergency, supplemental or other marginal reserve
requirement) for such Bank with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities having a term equal to such Interest Period.

     “Events of Default” has the meaning specified in Section 6.1. For purposes of clause (i) of
the definition herein of “Interest Period”, Section 2.14, Section 6.1 and Section 6.2, an Event of
Default exists as to a particular Borrower if such Event of Default exists wholly or in part as a
result of any event, condition, action, inaction, representation or other matter of, by or
otherwise directly or indirectly pertaining to such Borrower or any Subsidiary of such Borrower.
Without limiting the foregoing and for purposes of further clarification, it is agreed that
inasmuch as each of TGPL and NWP is a Subsidiary of TWC, any Event of Default that exists as to
either of TGPL or NWP also exists as to TWC.

     “Existing Assets” means all assets owned on the Effective Date by TWC or by any of its
Subsidiaries (other than the MLP, the MLP’s Subsidiaries or the Non-Recourse Subsidiaries).

     “Existing Letters of Credit” means all letters of credit listed on Schedule X.

     “Existing Tolling Arrangements” means those tolling arrangements listed on Schedule VIII.

     “Federal Funds Rate” means, for any day, a fluctuating interest rate per annum equal for such
day to the weighted average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if
such day is not a

-7-

 

Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day which is a Business Day, the average of the quotations
for such day on such transactions received by the Agent from three federal funds brokers of
recognized standing selected by it.

     “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or any
federal agency or authority of the United States from time to time succeeding to its function.

     “Financing Transaction” means, with respect to any Person (i) any prepaid forward sale of oil,
gas or minerals by such Person (other than gas balancing arrangements in the ordinary course of
business), that is intended primarily as a borrowing of funds, excluding volumetric production
payments and (ii) any interest rate, currency, commodity or other swap, collar, cap, option or
other derivative that is intended primarily as a borrowing of funds (excluding interest rate,
currency, commodity or other swaps, collars, caps, options or other derivatives to hedge against
risks in the ordinary course of business), with the amount of the obligations of such Person
thereunder being the net obligations of such Person thereunder.

     “Fiscal Ouarter” means any quarter of a Fiscal Year.

     “Fiscal Year” means any period of twelve consecutive calendar months ending on December 31.

     “Fronting Fee” shall have the meaning specified in Section 2.11(b)(i).

     “GAAP” means  generally accepted accounting principles set forth in the opinions and pronouncements
of the Accounting Principles Board of the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a significant segment of the accounting
profession, all as in effect from time to time.

     “General Permitted Liens” means Liens specifically described on Schedule IX-2.

     “Governmental Authority” means the government of the United States, any other nation or any
political subdivision thereof, whether state or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other Person exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to government,

     “Governmental Requirements” means all judgments, orders, writs, injunctions, decrees, awards,
laws, ordinances, statutes, regulations, rules, franchises, permits, certificates, licenses,
authorizations and the like and any other requirements of any government or any commission, board,
court, agency, instrumentality or political subdivision thereof.

     “Guaranties” means the Pipeline Holdco Guaranty and the TWC Guaranty.

     “Gulfstream” means Gulfstream Natural Gas System, L.L.C., a Delaware limited liability
company.

     “Hazardous Substance” shall have the meaning set forth in 42 U.S.C. §  9601(14) and shall also
include each other substance considered to be a hazardous substance under any Environmental Law.

     “Hazardous Waste” shall have the meaning set forth in 42 U.S.C. §  6903(5) and shall also
include each other substance considered to be a hazardous waste under any Environmental Law
(including 40 C.F.R. §  261.3).

-8-

 

     “Hybrid Security” means any security having equity-like characteristics or of the type
commonly known as a hybrid security, including any hybrid preferred security, enhanced
trust-preferred security or security that is treated (wholly or partially) as having equity content
or as equity, in each case whether or not treated as equity under GAAP.

     “Indemnified Parties” has the meaning assigned to such term in Section 8.4(b).

     “Insufficiency” means, with respect to any Plan, the amount, if any, by which the present
value of the vested benefits under such Plan exceeds the fair market value of the assets of such
Plan allocable to such benefits.

     “Interest Expense” means, for any Measurement Period, the gross interest expense (determined
in accordance with GAAP) of TWC and its Consolidated Subsidiaries (other than MLP and its
Subsidiaries) accrued for such period, but excluding, to the extent included in the determination
of interest expense for such period, (1) interest expense, debt discount, commission, discounts and
other fees and charges and interest income to the extent attributable to Reclassified Tolling
Arrangements or Non-Recourse Debt, (2) any charges, expenses or fees associated with any repurchase
or repayment of debt, and (3) any noncash amortization of debt discounts, commissions, discounts,
fees and charges and any interest expense attributable to the capitalized amount of obligations
owing under Capital Leases.

     “Interest Period” means, for each Eurodollar Rate Advance comprising part of the same
Revolving Credit Borrowing, the period commencing on the date of such Eurodollar Rate Advance or
the date of the Conversion of any Base Rate Advance into such Eurodollar Rate Advance and ending on
the last day of the period selected by a Borrower pursuant to the provisions below and, thereafter
each subsequent period commencing on the last day of the immediately preceding Interest Period and
ending on the last day of the period selected by a Borrower pursuant to the provisions below. The
duration of each such Interest Period shall be one, two, three or six months, as a Borrower may,
upon notice received by the Agent not later than 11:00 A.M. (New York City time) on the third
Business Day prior to the first day of such Interest Period, select;
provided, however, that:

          (i) a Borrower may not select any Interest Period that ends after the Termination Date, and no
Borrower may select any Interest Period if any Event of Default exists as to such Borrower;

          (ii) Interest Periods commencing on the same date for Eurodollar Rate Advances comprising part
of the same Revolving Credit Borrowing shall be of the same duration;

          (iii) whenever the last day of any Interest Period would otherwise occur on a day other than a
Business Day, the last day of such Interest Period shall be extended to occur on the next
succeeding Business Day; provided that, if such extension would
cause the last day of such Interest Period to occur in the next following calendar month, the
last day of such Interest Period shall occur on the next preceding Business Day; and

          (iv) whenever the first day of any Interest Period occurs on a day of an initial calendar
month for which there is no numerically corresponding day in the calendar month that succeeds such
initial calendar month by the number of months equal to the number of months in such Interest
Period, such Interest Period shall end on the last Business Day of such succeeding calendar month.

     “International Debt” means the Debt of any International Subsidiary.

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     “International Subsidiary” means each of El Furrial, Apco Argentina, PIGAP II and any
Subsidiary of any of them; provided that no Person shall be an International Subsidiary if it is a
Credit Party or owns, directly or indirectly, any Equity Interest in any Credit Party.

     “Issuing Banks” means each of the three Issuing Banks named in the first paragraph hereof.

     “Joint Lead Arrangers” means Citigroup Global Markets Inc. and Banc of America Securities LLC,
as joint lead arrangers and co-book runners.

     “LC Cash Collateral Accounts” has the meaning specified in Section 6.2.

     “LC Participation Percentage” of any Bank means, at any time, the percentage set opposite such
Bank’s name on Schedule III or as reflected for such Bank in the relevant Transfer Agreement to
which it is a party, as such percentage may be terminated, reduced or increased pursuant to Section
8.5(a).

     “Letter of Credit” means any letter of credit issued or deemed issued pursuant to this
Agreement (including, for avoidance of doubt, each Existing Letter of Credit and each Added Letter
of Credit), as amended, extended or otherwise modified from time to time.

     “Letter of Credit Commitment” of any Issuing Bank means, at any time, the amount set opposite
such Issuing Bank’s name on Schedule III under the heading “Letter of Credit Commitments”, as such
amount may be terminated or reduced pursuant to Section 2.4 or Section 6.1.

     “Letter of Credit Documents” means, with respect to any Letter of Credit, collectively, any
application therefor and any other agreements, instruments, guarantees or other documents (whether
general in application or applicable only to such Letter of Credit) governing or providing for (i)
the rights and obligations of the parties concerned or at risk with respect to such Letter of
Credit or (ii) any collateral security for any of such obligations, each as the same may be
modified and supplemented and in effect from time to time.

     “Letter of Credit Fee” has the meaning specified in Section 2.11(b)(ii).

     “Letter of Credit Interest” means, for each Bank, (i) such Bank’s participation interest in
Letters of Credit (and, in the case of an Issuing Bank, such Issuing Bank’s retained interest in
Letters of Credit issued by it), and (ii) such Bank’s rights and interests in Reimbursement
Obligations and fees, interest and other amounts payable in connection with Letters of Credit and
Reimbursement Obligations.

     “Letter of Credit Liability” means at any time and in respect of any Letter of Credit, the sum
(without duplication) of (a) the Available Amount of such Letter of Credit at such time plus (b) the
aggregate unpaid amount of all drawings under such Letter of Credit that are unpaid at such time.
For purposes of this Agreement, a Bank shall be deemed to hold a Letter of Credit Liability in an
amount equal to its LC Participation Percentage times the Letter of Credit Liability in respect of
the related Letter of Credit.

     “Lien” means  any mortgage, lien, pledge, charge, deed of trust, security interest, encumbrance or
other analogous type of preferential arrangement, whether arising by contract, operation of law or
otherwise (including the interest of a vendor or lessor under any conditional sale agreement,
Capital Lease or other title retention agreement).

     “Limited Permitted Liens” means Liens specifically described on Schedule IX-1.

-10-

 

     “Majority Banks” means, at any time, Banks owed or holding more than 50% of the sum of (i) the
aggregate unpaid principal amount of Revolving Credit Advances outstanding at such time, or if no
such principal amount is then outstanding, the aggregate Revolving Credit Commitments and (ii) the
aggregate Available Amount of all Letters of Credit outstanding at such time, or if no such
Available Amount of Letters of Credit is then outstanding, then the aggregate unpaid principal
amount of any outstanding Letter of Credit Interests.

     “Material Adverse Effect” means (i) in respect of TGPL and NWP, a material adverse effect on
(a) the business, assets, operations or condition, financial or otherwise, of such Borrower and its
Subsidiaries taken as a whole, or (b) the ability of such Borrower and its Subsidiaries, taken as a
whole, to perform their obligations under any Credit Document taken as a whole, and (ii) in the
case of TWC and MLP, a material adverse effect on (x) the business, assets, operations or
condition, financial or otherwise, of TWC and its Subsidiaries taken as a whole, or (y) the ability
of TWC and its Subsidiaries, taken as a whole, to perform their obligations under any Credit
Document taken as a whole.

     “Material Subsidiary” of any Borrower means (i) each Subsidiary of such Borrower that itself
(on an unconsolidated, stand alone basis) owns in excess of 7.5% (or, on and after the Trading Book
Termination Date, 10%) of the book value of the Consolidated assets of such Borrower and its
Consolidated Subsidiaries, and (ii) each Subsidiary of such Borrower that is a Credit Party;
provided that MLP, the MLP’s Subsidiaries, the Non-Recourse Subsidiaries and the International
Subsidiaries are not Material Subsidiaries for any purpose of this Agreement.

     “Measurement Period” means each period consisting of four consecutive Fiscal Quarters of TWC.

     “MLP” has the meaning specified in the first paragraph hereof.

     “MLP Agreement” means the Amended and Restated Agreement of Limited Partnership of the MLP, as
such agreement may be amended from time to time.

     “Moody’s” means Moody’s Investor Service, Inc. or its successor.

     “Multiemployer Plan” means any multiemployer plan, as defined in Section 4001(a)(3) of ERISA,
which is maintained by (or to which there is an obligation to contribute of) any Credit Party or an
ERISA Affiliate of any Credit Party.

     “Multiple Employer Plan” means an employee benefit plan as defined in Section 3(2) of ERISA,
other than a Multiemployer Plan, subject to Title IV of ERISA to which any Credit Party or any
ERISA Affiliate of any Credit Party, and one or more employers other than any Credit Party or an
ERISA Affiliate of any Credit Party, is making or accruing an obligation to make
contributions or, in the event that any such plan has been terminated, to which any Credit
Party or any ERISA Affiliate of any Credit Party made or accrued an obligation to make
contributions during any of the five plan years preceding the date of termination of such plan.

     “Net Worth” of any Person means, as of any date of determination, the excess of total assets
of such Person (plus all non-cash losses resulting from the write-down or disposition of assets of
such Person after December 31, 2005) over total liabilities of such Person, total assets and total
liabilities each to be determined in accordance with GAAP; provided that for purposes of
calculating Net Worth of TWC, (i) total liabilities shall not include any obligations of
Non-Recourse Subsidiaries in respect of Non-Recourse Debt or any Debt of MLP and its Subsidiaries
(but the TWC guaranty of Debt of MLP incurred under this Agreement shall be included), and (ii)
total assets shall not include any assets that secure any Non-Recourse Debt or any assets of any
Non-Recourse Subsidiary; provided further that for

-11-

 

purposes of calculating the Net Worth of any Person, Net Worth shall be adjusted to exclude any
item constituting the cumulative effect of a change in accounting principles related to accounting
for pensions.

     “Non-Pipeline Entity” means each of TWC and its Subsidiaries other than a Pipeline Entity

     “Non-Pipeline TWC Group” means TWC and its Subsidiaries, excluding (i) NWP, TGPL and Pipeline
Holdco and (ii) any Subsidiary of NWP, TGPL or Pipeline Holdco.

     “Non-Recourse Debt” means any Debt incurred by any Non-Recourse Subsidiary to finance the
acquisition, improvement, installation, design, engineering, construction, development, completion,
maintenance or operation of, or otherwise to pay costs and expenses relating to or provide
financing for, a project listed on Schedule VI or any new project commenced or acquired after the
Effective Date, which Debt does not provide for recourse against a Credit Party or any Subsidiary
of a Credit Party (other than a Non-Recourse Subsidiary and such recourse as exists under a
Performance Guaranty) or any property or asset of any Credit Party or any Subsidiary of a Credit
Party (other than the Equity Interests in, or the property or assets of, a Non-Recourse
Subsidiary).

     “Non-Recourse Subsidiary” means (i) any non-material Subsidiary of any Borrower whose
principal purpose is to incur Non-Recourse Debt and/or construct, lease, own or operate the assets
financed thereby, or to become a direct or indirect partner, member or other equity participant or
owner in a Business Entity created for such purpose, and substantially all the assets of which
Subsidiary and such Business Entity are limited to (x) those assets being financed (or to be
financed), or the operation of which is being financed (or to be financed), in whole or in part by
Non-Recourse Debt, or (y) Equity Interests in, or Debt or other obligations of, one or more other
such Subsidiaries or Business Entities, or (z) Debt or other obligations of any Borrower or its
Subsidiaries or other Persons and (ii) any Subsidiary of a Non-Recourse Subsidiary. For purposes of
this definition, a “non-material Subsidiary” shall mean any Consolidated Subsidiary of any Borrower
that is not a Credit Party and is not an owner, directly or indirectly, of any Equity Interest in
any Credit Party.

     “Note” means a promissory note of a Borrower payable to the order of any Bank, in substantially the
form of Exhibit G hereto (as such note may be amended, endorsed or otherwise modified from time to
time), delivered at the request of such Bank pursuant to Section 2.10 or 8.5, together with any
other note accepted from time to time in substitution or replacement therefor.

     “Notice of Letter of Credit” has the meaning specified in Section 2.2(a).

     “Notice of Revolving Credit Borrowing” has the meaning specified in Section 2.3(a).

     “NWP” has the meaning specified in the first paragraph hereof

     “Obligations” means all Reimbursement Obligations, the principal of and interest on each
Revolving Credit Advance and all other Debt, advances, interest, debts, liabilities, obligations,
indemnities, fees, expenses, charges and other amounts owing by any Credit Party to any Bank, the
Agent or any Issuing Bank under any Credit Document or to any other Person required to be
indemnified under any Credit Document, of any kind or nature, present or future, arising under this
Agreement or any other Credit Document, whether or not for the payment of money, whether arising by
reason of an extension of credit, loan, guaranty, indemnification or in any other manner, whether
direct or indirect (including those acquired by assignment), absolute or contingent, due or to
become due, now existing or hereafter arising and however acquired.

     “PBGC” means the Pension Benefit Guaranty Corporation.

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     “Performance Guaranty” means any guaranty issued in connection with any
Non-Recourse Debt or International Debt that (i) if secured, is secured only by assets of, or
Equity Interests in, a Non- Recourse Subsidiary or International Subsidiary, as
applicable, and (ii) guarantees to the provider of such Non-Recourse Debt or
International Debt or any other Person the (a) performance of the improvement,
installation, design, engineering, construction, acquisition, development, completion, maintenance
or operation of, or otherwise affects any such act in respect of, all
or any portion of the project that is financed by such Non-Recourse Debt
or International Debt, (b) completion of the minimum agreed equity contributions to the
relevant Non-Recourse Subsidiary or International Subsidiary, as applicable, or (c) performance by a
Non-Recourse Subsidiary or International Subsidiary, as applicable, of obligations to
Persons other than the provider of such Non-Recourse Debt or International Debt.

     “Permitted Business” means any business (other than the power business) in which TWC
or any of its Subsidiaries is actively engaged on the Effective Date.

     “Person” means an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture or
other Business Entity, or a government or any political subdivision or agency thereof.

     “PIGAP II” means WilPro Energy Services (PIGAP II)
Limited, a Cayman Islands corporation.

     “Pipeline Borrower” means each of TGPL and NWP.

     “Pipeline Entity” means each of Pipeline Holdco, TGPL, NWP and each Subsidiary
of Pipeline Holdco, TGPL or NWP.

     “Pipeline Groups” means (i) NWP and its Subsidiaries, (ii) TGPL and
its Subsidiaries, and (iii) Pipeline Holdco and its Subsidiaries (other than NWP, TGPL
and their respective Subsidiaries).

     “Pipeline Holdco” means Williams Gas Pipeline Company, LLC, a Delaware limited
liability company.

     “Pipeline Holdco Guaranty” means the guaranty executed by Pipeline Holdco in
substantially the form of Exhibit E, as amended, supplemented or otherwise modified
from time to time.

     “Pipeline Holdco Release Date” has the meaning specified in Section 8.15.

     “plan” means an employee pension benefit plan (other than a Multiemployer
Plan) as defined in Section 3(2) of ERISA currently maintained by, or in the event such
plan has terminated, to which contributions have been made or an obligation to make such
contributions has accrued during any of the five plan years preceding the date of the termination
of such plan by, any Credit Party or any ERISA Affiliate of any Credit Party for
employees of any Credit Party or any such ERISA Affiliate and covered
by Title IV of ERISA or subject to the minimum funding standards under Section
412 of the Code.

     “Rating Category” means, as to any Borrower, the relevant category (designated as a
“Level” followed by a Roman numeral) applicable to such Borrower from time to time as set forth
on Schedule IV, which is based on the ratings (or lack thereof)
of such Borrower’s senior unsecured long-term debt by S&P or Moody’s. In the event there is a split
between the ratings of any Borrower’s senior unsecured long-term debt by S&P and Moody’s, “Rating
Category” shall be determined based on the lower rating of such Borrower’s senior unsecured
long-term debt by S&P or Moody’s; provided that if such Borrower’s rating is BB-
or higher from S&P and Ba3 or higher from Moody’s and there is a split between the two
ratings, the pricing for such Borrower will be based on (i) if the split is one
subgrade, the higher rating

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and (ii) if the split is more than one subgrade, the rating level that is one subgrade below
the higher rating. For example, if S&P rates the senior unsecured long-term debt of a
Borrower BB+ and Moody’s rates such debt B2, then Level VI on Schedule IV shall apply
to such Borrower.

     “Reclassified Tolling Arrangements” means those Existing Tolling Arrangements that are
reclassified in accordance with GAAP (whether as a result of amendment, modification or otherwise)
after December 31, 2005 as debt.

     “Refinancing Indebtedness” has the meaning specified in paragraph (j)
of Schedule IX-2.

     “Register” has the meaning specified in Section 8.5(c).

     “Regulation U” means Regulation U of the Federal Reserve Board, as in
effect from time to time.

     “Reimbursement Obligations” means, at any time, in respect of any Borrower
the obligations of such Borrower then outstanding, or that may thereafter arise, in respect of all
Letters of Credit issued at the request of such Borrower then outstanding to reimburse amounts paid
by any Issuing Bank in respect of any drawings under any such Letter of Credit.

     “Related Party” of any Person means any other Person of which more than 10% of the
outstanding Equity Interests having ordinary voting power to elect a majority of the board of
directors of such other Person or others performing similar functions (irrespective of
whether or not at the time Equity Interests of any other class or classes
of such other Person shall or might have voting power upon the occurrence of any contingency) is at
the time directly or indirectly owned by such first Person or which owns at the time
directly or indirectly more than 10% of the outstanding Equity Interests
having ordinary voting power to elect a majority of the board of directors of such first Person or
others performing similar functions (irrespective of whether or not at the time Equity Interests of
any other class or classes of such first Person shall or might have voting power upon the
occurrence of any contingency); provided that (i) no Person that is part of the
Non-Pipeline TWC Group shall be considered to be a Related Party of any other Person that is a part
of the Non-Pipeline TWC Group and (ii) no Person that is a part of a Pipeline Group
shall be considered to be a Related Party of any other Person that is a part of the same Pipeline
Group.

     “Revolving Credit Advance” means an advance by a Bank to a Borrower as
part of a Revolving Credit Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance
(each of which shall be a “Type” of Revolving Credit Advance).

     “Revolving Credit Borrowing” means a borrowing consisting of Revolving Credit Advances
of the same Type made on the same day to the same Borrower by each of the Banks,
pursuant to Section 2.1(a).

     “Revolving Credit Commitment” means, with respect to any Bank for any Borrower at any
time, the amount set forth opposite such Bank’s name for such Borrower on Schedule III hereto under
the caption “Revolving Credit Commitment” for such Borrower or, if such Bank has entered into one
or more Transfer Agreements, set forth for such Bank and such Borrower in the Register maintained
by the Agent pursuant to Section 8.5(c) as such Lender’s “Revolving Credit Commitment” for such
Borrower, as such amount may be terminated or reduced at or prior to such time pursuant
to Section 2.4 or Section 6.1.

     “RMT” means Williams Production RMT Company, a Delaware corporation, and
its Subsidiaries.

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     “RMT Loan Agreement” means the Term Loan Agreement, dated as of May 30,
2003, by and among Williams Production Holdings LLC, RMT, Lehman Brothers Inc. and Banc of America
Securities LLC, as joint lead arrangers, Citicorp USA, Inc. and JPMorgan Chase Bank, as
co-syndication agents, Bank of America, N.A., as documentation agent, and Lehman Commercial Paper
Inc., as administrative agent, and the several lenders from time to time parties
thereto, as amended, supplemented or otherwise modified from time to time, or
any extension, refinancing or replacement thereof, whether with the same or a different
group of lenders.

     “S&P” means Standard & Poor’s Rating Group, a division of The McGraw Hill
Companies, Inc. on the date hereof or its successor.

     “Sale and Leaseback Transaction” of any Person means any arrangement entered into by
such Person or any Subsidiary of such Person, directly or indirectly, whereby such Person or any
Subsidiary of such Person shall sell or transfer any properly (other than the property listed on
Schedule XI), whether now owned or hereafter acquired to any other Person (a
“Transferee”), and whereby such first Person or any Subsidiary of such first Person shall then or
thereafter rent or lease as lessee such property or any part thereof or
rent or lease as lessee from such Transferee or any other Person other property which
such first Person or any Subsidiary of such first Person intends to use for
substantially the same purpose or purposes as the property sold or transferred.

     “Security Documents” means any security agreement or pledge delivered in order to
comply with Section 5.2(m).

     “Solvent” and “Solvency” means, with respect to any Person
on a particular date, that on such date (a) the fair value of the properly of such
Person is greater than the total amount of liabilities, including contingent liabilities, of such
Person, (b) the present fair salable value of the assets of such Person is not less than
the amount that will be required to pay the probable liability of such Person on its debts as they
become absolute and matured, (c) such Person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they
mature and (d) such Person is not engaged in business or a transaction, and is not
about to engage in business or a transaction, for which such Person’s
property would constitute an unreasonably small capital. The amount of contingent liabilities at
any time shall be computed as the amount that, in the light of all the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an actual
or matured liability.

     “SPC” has the meaning specified in Section 8.5(g).

     “Specified Escrow Arrangements” means cash deposits at one or more
financial institutions for the purpose of funding any potential shortfall in the daily net cash
position of TWC or any of its Subsidiaries.

     “Specified Obligations” means (i) any obligation of any Pipeline Entity under any bid,
tender, trade contract, lease, government contract, surety bond, appeal bond, performance bond or
return of money bond referred to in paragraph (e) of Schedule IX-2 and
(ii) any obligation under a loan or production payment referred to in
paragraph (p) of Schedule IX-2.

     “Subsidiary” of any Person means any corporation, partnership, joint venture
or other Business Entity of which more than 50% of the outstanding Equity Interests
having ordinary voting power to elect a majority of the board of directors of such
corporation, partnership, joint venture or other Business Entity or others performing
similar functions (irrespective of whether or not at the time Equity Interests of any
other class or classes of such corporation, partnership, joint venture or other Business Entity
shall or

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might have voting power upon the occurrence of any contingency) is at the time directly or
indirectly owned by such Person.

     “Syndication Agent” means BofA in its capacity as syndication agent
hereunder.

     “Termination Date” means the earlier of (i) May 1, 2009 or
(ii) the date of termination in whole of the Commitments pursuant to Section 2.4 or 6.1.

     “Termination Event” means (i) a “reportable event”, as such term is described in
Section 4043(c) of ERISA (other than a “reportable event” not subject to the provision for 30-day
notice to the PBGC or a “reportable event” as such term is described in Section 4043(c)(3) of
ERISA) which could reasonably be expected to result in a termination of, or the appointment of a
trustee to administer, a Plan, or which causes any Credit Party, due to actions of the PBGC, to be
required to contribute at least $125,000,000 in excess of the contributions which
otherwise would have been made to fund a Plan based upon the contributions recommended
by such Plan’s actuary, or (ii) the withdrawal of a Credit Party or any ERISA Affiliate of a Credit
Party from a Multiple Employer Plan during a plan year in which it was a “substantial
employer,” as such term is defined in Section 4001(a)(2) of ERISA, or the incurrence of liability
by a Credit Party or any ERISA Affiliate of a Credit Party under Section 4064 of ERISA
upon the termination of a Plan or Multiple Employer Plan, or (iii) the institution of proceedings
to terminate a Plan by the PBGC under Section 4042 of ERISA, or (iv) any other event or
condition which could reasonably be expected to result in the termination of, or the appointment
of, a trustee to administer, any Plan under Section 4042 of ERISA, other than (in the case of
clauses (ii), (iii) and (iv) of this definition) where the matters described on such
clauses, in the aggregate, could not reasonably be expected to have a Material Adverse Effect in
respect of any Borrower.

     “TGPL” has the meaning specified in the first paragraph hereof.

     “Trading Book” means the trading transactions of Williams Power and its Subsidiaries,
inclusive of structured portfolio transactions, consisting primarily of tolling and full
requirements transactions.

     “Trading Book Termination Date” means the date on which all or substantially all of
the Trading Book is sold or otherwise disposed of and all or substantially all of the liabilities
and obligations of TWC and its Subsidiaries related to the Trading Book are terminated.

     “Transfer Agreement” means an agreement executed pursuant to Section 8.5 by an
assignor Bank and assignee Bank substantially in the form of Exhibit C and executed by the
Borrowers, the Issuing Banks and the Agent to evidence the consent of each if such consent is
required pursuant to the definition herein of “Eligible Assignee” or the terms of
Section 8.5.

     “TWC” has the meaning specified in the first paragraph hereof.

     “TWC Guaranty” means the guaranty executed by TWC in substantially the form of Exhibit
F, as amended, supplemented or otherwise modified from time to time.

     “2005 Credit Agreement” means the Amended and Restated Credit Agreement dated as of May
20, 2005 among the Borrowers, Citibank and BofA as issuing banks, CUSA as administrative agent and
collateral agent and others.

     “Type” has the meaning set forth in the definition herein of Revolving Credit
Advance.

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     “Unrated” means, as to any Borrower, that no senior unsecured long-term
debt of such Borrower is rated by S&P and no senior unsecured long-term debt of such Borrower is
rated by Moody’s.

     “Unused Revolving Credit Commitment” means, with respect to each Bank for
each Borrower at any time, (a) such Bank’s Revolving Credit Commitment for such Borrower at such
time minus (b) the sum of (i) the aggregate principal amount of all Revolving
Credit Advances owed by such Borrower to such Bank and outstanding at such time and (ii) such
Bank’s aggregate Letter of Credit Liabilities for all Letters of Credit issued at the request of
such Borrower.

     “Wholly-Owned Subsidiary” of any Person means any Subsidiary of such Person all of the
Equity Interests in which are owned by such Person and/or one or more other
Wholly-Owned Subsidiaries of such Person.

     “Williams Power” means Williams Power Company, a Delaware corporation, and its
Subsidiaries.

     “Withdrawal Liability” shall have the meaning given such term under Part I
of Subtitle E of Title IV of ERISA.

     SECTION
1.2. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each means “to but excluding”.

     SECTION 1.3. Accounting Terms. All accounting terms not specifically
defined shall be construed in accordance with GAAP. To the extent there are any changes
in GAAP from December 31, 2005, the financial covenants set forth herein will continue
to be determined in accordance with GAAP in effect on December 31, 2005, as applicable,
until such time, if any, as such financial covenants are adjusted or reset to reflect such changes
in GAAP and such adjustments or resets are agreed to in writing by the Borrowers and
the Agent (after consultation with the Majority Bank).

     SECTION 1.4. Miscellaneous. The words “hereof”, “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Article, Section, Schedule and Exhibit references are
to Articles and Sections of and Schedules and Exhibits to this Agreement, unless otherwise
specified. The term “including” shall mean “including, without limitation”. References to any
document, instrument or agreement (a) shall include all exhibits, schedules and other attachments
thereto, (b) shall include all documents, instruments or agreements issued or
executed in replacement thereof and (c) shall mean such document, instrument or
agreement, or replacement or predecessor thereto, as amended, modified and supplemented from time
to time and in effect at any given time so long as such amended, modified or supplemented document,
instrument or agreement does not violate the terms of this Agreement.

     SECTION
1.5. Ratings. A rating, whether public or private, by S&P or
Moody’s shall be deemed to be in effect on the date of announcement or publication by
S&P or Moody’s, as the case may be, of such rating or, in the absence of
such announcement or publication, on the effective date of such rating and
will remain in effect until the announcement or publication of, or in the absence
of such announcement or publication, the effective date of, any change in, or
withdrawal or termination of, such rating. In the event the standards for any rating by
Moody’s or S&P are revised, or any such rating is designated differently (such as by
changing letter designations to different letter designations or to numerical
designations), the references herein to such rating shall be deemed to refer to the revised or
redesignated rating for which the standards are closest to, but not lower than, the
standards at the date hereof for the rating which has been revised or redesignated, all
as determined by the Majority Banks in

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good faith. Long-term debt supported by a letter of credit, guaranty, insurance or other
similar credit enhancement mechanism shall not be considered as senior unsecured long-term debt.

ARTICLE II

AMOUNTS AND TERMS OF THE REVOLVING CREDIT

ADVANCES AND LETTERS OF CREDIT

     SECTION 2.1. Revolving Credit Advances and Letters of Credit.

     (a) Revolving Credit Advances. Each Bank severally agrees, on the terms and conditions
hereinafter set forth, to make Revolving Credit Advances to each Borrower from time to time on any
Business Day during the period from the Effective Date until the Termination Date; provided that in
no event shall the sum of the aggregate amount of all Revolving Credit Advances owed to
such Bank outstanding to such Borrower plus the aggregate amount of all Letter of Credit
Liabilities held by such Bank for all Letters of Credit issued at the request of such Borrower
exceed, at the time any Revolving Credit Advance is made by such Bank (and giving
effect to such Revolving Credit Advance), such Bank’s Revolving Credit Commitment for
such Borrower at such time; provided further that in no event shall the sum
of the aggregate amount of all Revolving Credit Advances to all Borrowers owed
to any Bank plus the aggregate amount of all Letter Credit Liabilities held
by such Bank for all Letters of Credit exceed, at the time any Revolving Credit Advance
is made by such Bank (and giving effect to such Revolving Credit Advance), the Revolving Credit
Commitment of such Bank for TWC. Each Revolving Credit Borrowing to a
Borrower shall be in an aggregate amount of $5,000,000 or an integral multiple of
$1,000,000 in excess thereof and shall consist of Revolving Credit Advances of the same
Type made to such Borrower on the same day by the Banks ratably according to their respective
Revolving Credit Commitments for such Borrower and, if such Revolving Credit Advances are
Eurodollar Rate Advances, having the same Interest Period. Within the limits of this Section
2.1(a), a Borrower may borrow under this Section 2.1(a), prepay pursuant to Section 2.5 and
reborrow under this Section 2.1(a).

     (b) Letters of Credit. Each Issuing Bank agrees, on the
terms and conditions hereinafter set forth, to issue letters of credit in Dollars at
the request of any Borrower (such issuance, and any funding of a draw thereunder, are deemed made
by the Issuing Banks in reliance on the agreements of the other Banks pursuant to Section 2.2) from
time to time on any Business Day during the period from the Effective Date until the
earlier of (A) the date of termination in whole of the Commitments pursuant to Section 2.4 or 6.1
or (B) the date that is 30 days prior to the date listed in clause (i) of
the definition herein of “Termination Date” in an aggregate Available Amount such that, immediately
after giving effect to the issuance of each Letter of Credit, the aggregate Letter of Credit
Liabilities (i) in respect of all
Letters of Credit issued by the Issuing Banks do not exceed at the time of any
such issuance the aggregate of all Letter of Credit Commitments at such time, (ii) in respect of
all Letters of Credit issued by any Issuing Bank do not exceed at the time of any such
issuance the Letter of Credit Commitment of such Issuing Bank at such time, and (iii) in respect of
all Letters of Credit outstanding at the time of any such issuance issued at the
request of any Borrower do not exceed an amount equal to the Revolving Credit
Commitments of the Banks for such Borrower at such time minus the aggregate amount of all Revolving
Credit Advances outstanding to such Borrower at such time; provided that in no
event shall the sum of the aggregate amount of all Revolving Credit Advances to
all Borrowers owed to any Bank plus the aggregate amount of all Letter of Credit
Liabilities held by such Bank for all Letters of Credit exceed the Revolving Credit Commitment of
such Bank for TWC at the time of any such issuance; provided further that no Issuing Bank shall be
under any obligation to issue a letter of credit if, in the reasonable opinion of such
Issuing Bank, such letter of credit would violate or conflict with any regulatory or legal
restriction applicable to such Issuing Bank, or an internal policy, procedure or
guideline of such Issuing Bank generally applicable to the issuance of letters of credit. No Letter
of Credit shall have an expiration date

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(including all rights of a Borrower or the beneficiary to require renewals, but
excluding automatic renewal provisions if the relevant Issuing Bank can, in its discretion, refuse
to renew and thereby cause the expiration date to occur no later than 7 Business Days
prior to. the date set forth in clause (i) of the definition herein of Termination
Date) later than 7 Business Days prior to the date set forth in clause (i) of the
definition herein of Termination Date. Within the limits referred to above, a Borrower may request
the issuance of Letters of Credit under this Section 2.1(b), repay any Letter of Credit Liability
resulting from drawings thereunder pursuant to Section 2.2(c) and request the issuance of
additional Letters of Credit under this Section 2.1(b).

     SECTION 2.2. Issuance and Addition of and Drawings and
Reimbursement Under Letters of Credit.

     (a) Issuance and Addition. (1) A Borrower shall give the Agent and the
Issuing Bank from which it is requesting a Letter of Credit at least three Business Days’ (or such
shorter period as agreed to by the Agent and such Issuing Bank) prior notice, in the form of
Exhibit D-1 (a “Notice of Letter of Credit”), specifying the Business Day such Letter
of Credit is to he issued and the account party or parties therefor and describing in
reasonable detail the proposed terms of such Letter of Credit (including the beneficiary thereof)
and the nature of the transactions or obligations proposed to be supported thereby; provided that
no Borrower may request a Letter of Credit (i) to support any Debt, (ii) in favor of the proposed
Issuing Bank for such Letter of Credit or any of its affiliates as beneficiary if such
beneficiary is serving in that capacity as a fiduciary, or trustee, for the interests
of any other Person or (iii) for any unlawful purpose.

     (2) Additionally, if (i) an Issuing Bank has, at the request of a Borrower, issued a letter of
credit in Dollars other than under this Agreement, (ii) such Borrower decides to add
such letter of credit (an “Added Letter of Credit”) to this Agreement as a Letter of Credit
and (iii) such Issuing Bank consents in writing (such consent, and any funding of a draw under such
letter of credit, are deemed made by such Issuing Bank in reliance on the agreements of the other
Banks pursuant to this Section 2.2) to such letter of credit becoming an Added Letter of Credit,
then such Borrower shall give the Agent and such Issuing Bank at least three Business Days’ (or
such shorter period as agreed to by the Agent and such Issuing Bank) prior notice that such
Borrower requests that such letter of credit be so added by delivering a Notice of
Letter of Credit specifying the Business Day such letter of credit is to be added to this Agreement
and attaching thereto a copy of such letter of credit. On the Business Day so
specified for such letter of credit, such letter of credit shall become an Added Letter of
Credit and become a Letter of Credit deemed issued under this Agreement by the Issuing Bank
specified in the relevant Notice of Letter of Credit (the date such letter of credit so
becomes an Added Letter of Credit being the “Added L/C Effective Date”
for such letter of credit), if immediately after giving effect to such letter of credit becoming a
Letter of Credit (A) as to each Bank, the sum of the aggregate amount of all Revolving
Credit Advances to all Borrowers owed to such Bank plus the aggregate amount of all Letter of
Credit Liabilities held by such Bank for all Letters of Credit does not exceed the
Revolving Credit Commitment of such Bank for TWC, (B) the aggregate Letter of Credit
Liabilities (i) in respect of all Letters of Credit issued by the Issuing Banks do not exceed the
aggregate of all
Letter of Credit Commitments at such time, (ii) in respect of all Letters of Credit issued by
such Issuing Bank do not exceed the Letter of Credit Commitment of such Issuing Bank
at such time, and (iii) in respect of all Letters of Credit outstanding issued at the request of
any Borrower do not exceed an amount equal to the Revolving Credit Commitments of the Banks for
such Borrower at such time minus the aggregate amount of all Revolving Credit Advances outstanding
to such Borrower at such time, (C) such letter of credit shall have an expiration date (including
all rights of a Borrower or the beneficiary to require renewals, but excluding
automatic renewal provisions if such Issuing Bank can, in its discretion, refuse to
renew and thereby cause the expiration date to occur no later than 7 Business Days prior to the
date set forth in clause (i) of the definition herein of Termination Date) no later
than 7 Business Days prior to the date set forth in

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clause (i) of the definition herein of Termination Date, and (D) such Issuing Bank notifies the
Agent, on or before such Added L/C Effective Date, that such letter of credit is
or will become, as of such Added L/C Effective Date, an Added Letter of Credit.

     (3) The Issuing Bank issuing any Letter of Credit may specify therein whether such
Letter of Credit will be subject to the International Standby Practices, the Uniform Customs
and Practices or other practices. A Letter of Credit will be deemed to be issued at the
request of (i) NWP, if NWP gives the Notice of Letter of Credit in
respect of such Letter of Credit; (ii) TGPL, if TGPL gives the Notice of Letter of Credit in
respect of such Letter of Credit, (iii) MLP, if MLP gives the Notice of Letter of Credit in respect
of such Letter of Credit and (iv) TWC, if neither NWP nor TGPL nor MLP gives the Notice of Letter
of Credit in respect of such Letter of Credit.

     (b) Participations in Letters of Credit. On each day during
the period commencing with the issuance by any Issuing Bank of any Letter of Credit at the request
of any Borrower and until such Letter of Credit shall have expired or been terminated,
the Letter of Credit Commitment of each Issuing Bank shall be deemed to be utilized for all
purposes of this Agreement in an amount equal to the
Available Amount of such Letter of Credit. Each Bank agrees that, upon the issuance of any Letter
of Credit hereunder by any Issuing Bank, it shall automatically acquire a participation in such
Issuing Bank’s liability under such Letter of Credit in an amount equal to such
Bank’s LC Participation Percentage of such liability, and each Bank thereby shall absolutely,
unconditionally and irrevocably assume, as primary obligor and not as surety, liability to pay such
amount and shall be unconditionally obligated to such Issuing Bank to the
extent provided in this Section 2.2.

     (c) Reimbursement Obligations: Notice of Drawings. Upon receipt from the
beneficiary of any Letter of Credit of any demand for payment under such Letter of Credit, the
Issuing Bank that issued such Letter of Credit shall promptly notify the applicable Borrower
(through the Agent) of the amount to be paid by such Issuing Bank as a result of such
demand and the date on which payment is to be made by such Issuing Bank to such
beneficiary in respect of such demand, which shall be (unless same day payment is
required by the terms of such Letter of Credit pursuant to a request of such Borrower) at least one
Business Day after the date on which the Agent shall deliver such notice to the applicable Borrower
pursuant to this sentence. Each Borrower hereby unconditionally agrees to pay and reimburse the
Agent for the account of the Issuing Bank that issued a Letter of Credit at the request of such
Borrower for the amount of each demand for payment under such Letter of Credit that is
in substantial compliance with the provisions of such Letter of Credit at or prior to the
date on which payment is to be made by such Issuing Bank to the beneficiary
thereunder (or on the next Business Day, if same day payment is required by the terms of
such Letter of Credit pursuant to a request of such Borrower and if the notice
to such Borrower from such Issuing Bank in respect of such demand contemplated by the first
sentence of this Section 2.2(c) is not given prior to 9:00 a.m. (New York City time)
on such date), without presentment, demand, protest or other formalities of
any kind, in each case together with interest thereon at a rate per annum equal to the Base
Rate plus the Applicable Margin in effect from time to time for such Borrower as
to Base Rate Advances,
for the period from the date payment is made by such Issuing Bank to the
beneficiary thereunder until the date of such reimbursement. Each Borrower’s
obligations to reimburse each Issuing Bank as provided herein shall be absolute,
unconditional and irrevocable under all circumstances whatsoever, including the following
circumstances: (i) any lack of validity of this Agreement, the other Credit Documents
or the other documents to be delivered under this Agreement; (ii) the existence of any claim,
set-off, defense or other right that a Borrower may have at any time against the Agent, any Bank,
any Issuing Bank or any other Person, whether in connection with the transactions contemplated by
this Agreement or any unrelated transaction; (iii) any action or inaction taken or
suffered by any Issuing Bank under a Letter of Credit if taken in good faith and in
conformity with applicable law; (iv) the payment by any Issuing Bank under a Letter of Credit
against presentation of a demand, statement or other document which in the sole discretion of such
Issuing Bank substantially complies with the terms

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of such Letter of Credit, including any demand, statement or other document which is
forged, fraudulent, invalid or inaccurate in any respect; (v) any
exchange, release or non-perfection of any collateral for, or
any release or amendment or waiver of or consent to departure
from any guarantee of, all or any of the Obligations in
respect of any Letter of Credit; and (vi) any determination of
invalidity or unenforceability with respect to any Letter of Credit after payment by an
Issuing Bank thereunder.

     (d) Payments by Banks to Issuing Banks. To the extent that a
Borrower fails to make any payment to an Issuing Bank that such Borrower is required to make
pursuant to Section 2.2(c), each Bank (other than such Issuing Bank) shall pay to the Agent, for
the account of such Issuing Bank in Dollars and in immediately available funds, the
amount of such Bank’s LC Participation Percentage of any payment under a Letter of Credit upon
notice by such Issuing Bank (through the Agent) to such Bank requesting such payment and specifying
such amount. Each such Bank’s obligation to make such payment to the Agent for the
account of such Issuing Bank under this Section 2.2(d), and such Issuing Bank’s right
to receive the same, shall be absolute and unconditional and shall not be affected by
any circumstance whatsoever (other than the gross negligence or willful misconduct
of such Issuing Bank in making payment under such Letter
of Credit), including the failure of any other Bank to make its payment under this
Section 2.2(d), the financial condition of a Borrower (or any other
Person), the existence of any Default or Event of Default, the incorrectness of
any representation or warranty, the existence of any claim, set-off, defense or other
right, any amendment, extension or other modification of any Letter of Credit or the
reduction or termination of the Letter of Credit Commitments or the Revolving Credit Commitments.
If any Bank shall default in its obligation to make any such payment to the Agent for the
account of an Issuing Bank, for so long as such default shall continue the Agent
may, at the request of such Issuing Bank, withhold from any payments
received by the Agent under this Agreement for the account of such Bank the amount so
in default and, to the extent so withheld, pay the same to such
Issuing Bank for application to such defaulted obligation.

     (e) Participations in Reimbursement Obligations. Upon the
making of each payment by a Bank to an Issuing Bank pursuant to Section
2.2(d) in respect of any Letter of Credit, such Bank shall, automatically and without
any further action on the part of the Agent, any Issuing Bank or
such Bank, acquire (i) a funded participation in an amount equal to such payment in the
Reimbursement Obligation owing to such Issuing Bank by the applicable Borrower hereunder and under
the Letter of Credit Documents relating to such Letter of Credit and (ii) a participation in a
percentage equal to such Bank’s LC Participation Percentage in any interest or other amounts
payable by the applicable Borrower hereunder and under such Letter of Credit Documents
in respect of such Reimbursement Obligation (other than the Fronting Fee
contemplated by Section 2.11(b)(i)). Upon receipt by any Issuing Bank from
or for the account of a Borrower of any payment in respect of any
Reimbursement Obligation or any such interest or other amount (including by way of
setoff or application of proceeds of any collateral security or the withdrawal and
application of funds from an LC Cash Collateral Account in respect of such Borrower),
such Issuing Bank
shall promptly pay to the Agent, for the account of
each Bank entitled thereto, such Bank’s LC Participation Percentage of such
payment, each such payment by such Issuing Bank to be made in the same currency and
funds in which received by such Issuing Bank. In the event any payment received by
any Issuing Bank and so paid to the Banks hereunder is rescinded or must
otherwise be returned by such Issuing Bank, each Bank shall, upon the request of such Issuing Bank
(through the Agent), repay to such Issuing Bank (through the Agent) the portion of such
payment paid to
such Bank.

     (f) Information Provided by Issuing Banks to Banks. Promptly after the
issuance of or amendment to any Letter of Credit, the Issuing Bank that issued such Letter of
Credit will notify the Agent and the applicable Borrower in writing of such issuance or
amendment and such notice shall be accompanied by a copy of such issued or
amended Letter of Credit. Upon receipt of such notice, the Agent shall
notify each Bank of such issuance or amendment and, if requested by a Bank, the Agent
shall

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provide such Bank with copies of such issued or amended Letter of Credit and any Letter of Credit
Documents related thereto delivered to the Agent.

     (g) Conditions Precedent to Issuance, Modification and Addition. The
obligation of any Issuing Bank to issue a Letter of Credit shall be subject to satisfaction of each
of the conditions precedent set forth in Section 3.2, and shall further be subject to the
conditions precedent that (i) such Letter of Credit shall be in such form and contain such
terms as shall be reasonably satisfactory to such Issuing Bank consistent with its then
current practices and procedures of general applicability with respect to letters of credit of the
same type and (ii) the applicable Borrower shall have executed and delivered such applications,
agreements and other instruments relating to such Letter of Credit as such Issuing Bank shall have
reasonably requested consistent with its then current practices and procedures of
general applicability with respect to letters of credit of the same type;
provided that in the event of any conflict between any such application, agreement or other
instrument and the provisions of this Agreement, the provisions of this Agreement shall control.
The obligation of any Issuing Bank to make any amendment, modification or supplement to any Letter
of Credit hereunder which increases the stated amount thereof shall be subject to the same
conditions applicable under this Section 2.2 (including the conditions set forth in
Section 3.2) to the issuance of new Letters of Credit, and no Issuing Bank shall be obligated to
make any such amendment, modification or supplement unless the Letter of Credit
affected thereby would have complied with such conditions had it originally been issued hereunder,
on the date of such amendment, modification or supplement, in such amended, modified
or supplemented form. The obligation of any Issuing Bank to add any letter of credit
hereto as contemplated by Section 2.2(a)(2) shall be subject to the same conditions applicable
under this Section 2.2 (including the conditions set forth in Section 3.2) to the
issuance of new Letters of Credit, and no Issuing Bank shall be obligated to make any such addition
unless the Added Letter of Credit would have complied with such conditions had it originally been
issued hereunder on the date of such addition. In the event of any conflict between any
application, agreement or other instrument relating to an Added Letter of Credit and the provisions
of this Agreement, the provisions of this Agreement shall control.

     (h) Interest Payable to Issuing Banks by Banks. To the extent that any
Bank shall fail to pay any amount required to be paid pursuant to Sections
2.2(d) or (e) on the due date therefor, such Bank shall pay interest to
the Issuing Bank owed such amount (through the Agent) on such amount from and including
such due date to but excluding the date such payment is made at a rate per annum equal to the
Federal Funds Rate.

     (i) Indemnification of the Banks, Issuing Banks and Agent. The Borrowers hereby
indemnify and hold harmless each Bank, each Issuing Bank and the Agent from and against any and all
claims, damages, losses, liabilities, costs, fees and expenses that such Bank, such Issuing Bank or
the Agent may incur (or that may be claimed against such Bank, such Issuing Bank or the Agent by
any Person whatsoever) by reason of or in connection with the execution and delivery or transfer of
or payment or refusal to pay by each Issuing Bank under any Letter of
Credit (EXPRESSLY INCLUDING
ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY, COST, FEE OR EXPENSE ATTRIBUTABLE TO
THE ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE OF SUCH BANK, SUCH ISSUING BANK OR
THE AGENT, AS THE CASE MAY BE, BUT EXCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY,
COST, FEE OR EXPENSE ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH BANK, SUCH
ISSUING BANK OR THE AGENT, AS THE CASE MAY BE). IT IS THE INTENT OF THE
PARTIES HERETO THAT EACH BANK, EACH ISSUING BANK OR THE AGENT, AS THE CASE MAY BE,
SHALL, TO THE EXTENT PROVIDED IN THIS SECTION 2.2(i), BE INDEMNIFIED FOR
ITS OWN ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE; provided that the Borrowers shall not
be required to indemnify any Bank, any Issuing Bank or the Agent for any claims,
damages, losses, liabilities, costs, fees or expenses to the extent, but

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only to the extent, caused by (A) in the case of each Issuing Bank, the willful misconduct or
gross negligence of such Issuing Bank in determining whether a request presented under
any Letter of Credit complied with the terms of such Letter of Credit or (B) in the case of any
Bank, such Bank’s failure to pay its Letter of Credit Liabilities pursuant to
Sections 2.2(d), (e) and (h).

     (j) Existing Letters of Credit. For the avoidance of doubt,
the parties hereto acknowledge and agree that all Existing Letters of Credit are deemed to be
issued under this Agreement by the Issuing Bank party thereto at the request of TWC and shall
constitute Letters of Credit hereunder for all purposes (including Section 2.2(b) and Section
2.2(d)), and no notice requesting issuance thereof shall be required hereunder. Each reference
herein to the issuance of a Letter of Credit shall include any such deemed issuance. All fees
accrued on the Existing Letters of Credit to but excluding the date hereof shall be for the account
of the relevant “Issuing Bank” and the “Banks” (as those terms are used in the 2005 Credit
Agreement) as provided in the 2005 Credit Agreement, and all fees accruing on the
Existing Letters of Credit on and after the date hereof shall be for the account of the
relevant Issuing Bank thereof and the Banks as provided herein.

     (k) Cash Collateral. If any amounts are deposited in any LC Cash
Collateral Account in respect of any Borrower pursuant to Section 2.5(c), such amounts
shall be applied first, to reimburse the Agent for all costs, fees, expenses and other amounts
expended by it relating to such LC Cash Collateral Account, second, to pay Reimbursement
Obligations in respect of Letters of Credit issued at the request of such Borrower outstanding at
the time of such deposit and, third, either (i) if at the time all such Letters of
Credit terminate and all such Reimbursement Obligations are paid no Event of
Default has occurred and is continuing (or if the Agent has not declared all amounts payable
hereunder by such Borrower to be due and payable), returned to such Borrower or (ii) if at such
time an Event of Default has occurred and is continuing (and if the Agent has
declared all amounts payable hereunder by such Borrower to be due and payable), held by the Agent
in an LC Cash Collateral Account in respect of such Borrower in accordance with Section
6.2.

     (l) Applicability of ISP98 (ICC Publication No. 59). Unless otherwise
expressly agreed by an Issuing Bank and a Borrower when a Letter of Credit is issued or except as
otherwise specifically provided in respect of an Existing Letter of Credit or
an Added Letter of Credit, the rules of the “International Standby Practices 1998”
published by the Institute of International Banking Law & Practice, Inc. (or
such later version thereof as may be in effect at the time of issuance) shall apply to each
Letter of Credit.

     (m) Added Letters of Credit. Each Added Letter of Credit (i) shall be
deemed to be issued under this Agreement, as of the Added L/C Effective Date for such Added Letter
of Credit, at the request of the Borrower that gave the Notice of Letter of Credit in respect of
such Added Letter of Credit and (ii) as of such Added L/C Effective Date, shall constitute a Letter
of Credit issued hereunder by the Issuing Bank specified in such Notice of Letter of
Credit for all purposes (including Section 2.2(b) and Section 2.2(d)). Each reference herein
to the issuance of a Letter of Credit shall include any such deemed issuance. All fees
accrued on a letter of credit that becomes an Added Letter of Credit, to but excluding the Added L/C
Effective Date for such Added Letter of Credit shall be for the account of the entity that issued
such Added Letter of Credit, and all fees accruing on such letter of credit
on and after such Added L/C Effective Date shall be for the account of the relevant
Issuing Bank thereof and the Banks as provided herein.

     SECTION 2.3. Making the Revolving Credit Advances.

     (a) Each Revolving Credit Borrowing shall be made on notice, given not later than 11:00
a.m. (New York City time) on the third Business Day prior to the date of the
proposed Revolving Credit

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Borrowing in the case of a Revolving Credit Borrowing consisting of Eurodollar Rate Advances, or
10:00 a.m. (New York City time) on the Business Day of the proposed
Revolving Credit Borrowing in the case of a Revolving Credit Borrowing consisting of Base Rate
Advances, by the Borrower requesting such Revolving Credit Borrowing to the Agent, which shall give
to each Bank prompt notice thereof. Each such notice of a Revolving Credit Borrowing (a “Notice
of Revolving Credit Borrowing”) shall be by telephone, confirmed immediately in writing, or
telecopier in substantially the form of Exhibit D-2 hereto, specifying therein the requested (i)
date of such Revolving Credit Borrowing, (ii) Type of Revolving Credit Advances, (iii) aggregate
amount of such Revolving Credit Borrowing, and (iv) in the case of a Revolving Credit Borrowing
consisting of Eurodollar Rate Advances, initial Interest Period for each such Revolving Credit
Advance. Each Bank shall, before 12:00 p.m. (New York City time) on the date of such Revolving
Credit Borrowing, make available for the account of its Applicable Lending Office to the Agent at
its address referred to in Section 8.2 (excluding, for such purpose, any address to which copies
are to be sent), in same day funds, such Bank’s ratable portion of such Revolving Credit Borrowing.
After the Agent’s receipt of such funds, the Agent will make such funds available to
the Borrower requesting such Revolving Credit Borrowing at such
address; provided that the Agent
shall not be required to make such funds available if the applicable conditions set forth in
Section 3.2 have not been fulfilled.

     (b) Anything in Section 2.3(a) to the contrary notwithstanding, a Borrower may
not select Eurodollar Rate Advances for any Revolving Credit Borrowing if the
obligation of the Banks to make Eurodollar Rate Advances shall then be suspended pursuant to
Sections 2.3(e), 2.14 or 2.16.

     (c) No Borrower may select Eurodollar Rate Advances for any Revolving Credit
Borrowing if the aggregate amount of such Revolving Credit Borrowings is less than $5,000,000.

     (d) Each Notice of Revolving Credit Borrowing shall be irrevocable and binding on
the Borrower delivering such notice. In the case of any Revolving Credit Borrowing that the related
Notice of Revolving Credit Borrowing specifies is to be comprised of Eurodollar Rate Advances, the
Borrower requesting such Borrowing shall indemnify each Bank against any loss, cost or
expense incurred by such Bank as a result of any failure by such Borrower to fulfill on or
before the date specified in such Notice of Revolving Credit Borrowing for such Revolving
Credit Borrowing the applicable conditions set forth in Article III or as
a result of a cancellation pursuant to Section 2.3(f), including any loss (excluding loss of
anticipated profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Bank to fund the Revolving Credit Advance
to be made by such Bank as part of such Revolving Credit Borrowing when such Revolving Credit
Advance, as a result of such failure or cancellation, is not made on such date.

     (e) If the Agent is unable to determine the Eurodollar Rate for Eurodollar Rate
Advances, the obligation of the Banks to make, or to Convert Revolving Credit Advances
into, Eurodollar Rate Advances shall be suspended until the Agent shall notify the Borrowers
and the Banks that the circumstances causing such suspension no longer
exist, and, except as provided in Section 2.3(f), each Revolving Credit Advance comprising any
requested Revolving Credit Borrowing shall be a Base Rate Advance.

     (f) If a Borrower has requested a proposed Revolving Credit Borrowing consisting
of Eurodollar Rate Advances and as a result of circumstances referred to in Section 2.3(e), Section
2.14(b) or Section 2.16 such Revolving Credit Borrowing would not consist of Eurodollar
Rate Advances, such Borrower may, by notice given not later than 3:00 p.m. (New York
City time) at least one Business Day prior to the date such proposed Revolving Credit Borrowing
would otherwise be made, cancel such Revolving Credit Borrowing, in which case such Revolving
Credit Borrowing shall be cancelled and no Revolving Credit Advances shall be made as a result of
such requested Revolving Credit Borrowing, but

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such Borrower shall indemnify the Banks in connection with such cancellation as contemplated by
Section 2.3(d).

     (g) Unless
the Agent shall have received notice from a Bank prior to the date of
any Revolving Credit Borrowing that such Bank will not make available to the Agent
such Bank’s ratable portion of such Revolving Credit Borrowing, the Agent may assume that such Bank
has made such portion available to the Agent on the date of such Revolving Credit Borrowing in
accordance with Section 2.3(a) and the Agent may, in reliance upon such assumption, make
available to a Borrower on such date a corresponding amount. If and to the extent that
such Bank shall not have so made such ratable portion available to the Agent, such Bank and
Borrower severally agree to repay to the Agent forthwith on demand such corresponding
amount together with interest thereon, for each day from the date such amount is made available to
such Borrower until the date such amount is repaid to the Agent, at (i) in the case of such
Borrower, the interest rate applicable at the time to Revolving Credit Advances comprising such
Revolving Credit Borrowing and (ii) in the case of such Bank, the Federal Funds Rate. If such Bank
shall repay to the Agent such corresponding amount, such amount so repaid shall
constitute such Bank’s Revolving Credit Advance as part of such Revolving Credit Borrowing for
purposes of this Agreement and such Borrower shall be relieved of its obligations to repay on
demand such amount under this Section 2.3(g).

     (h) The failure of any Bank to make the Revolving Credit Advance to be made by it
as part of any Revolving Credit Borrowing shall not relieve any other Bank of its obligation, if
any, hereunder to make its Revolving Credit Advance on the date of such Revolving
Credit Borrowing, but no Bank shall be responsible for the failure of any other Bank to
make any Revolving Credit Advance to be made by such other Bank.

     SECTION 2.4. Reduction of the Commitments. Each Borrower shall have the right, upon at
least three Business Days notice to the Agent, to terminate in whole or reduce ratably in part (i)
the Unused Revolving Credit Commitments for such Borrower and (ii) the unused portions of the
Letter of Credit Commitments; provided that each partial reduction shall be in the aggregate amount
of $5,000,000 or an integral multiple of $1,000,000 in excess thereof and shall be made ratably
among the Banks or Issuing Banks, as the case may be, in accordance with their respective Revolving
Credit Commitments for such Borrower or Letter of Credit Commitments, as the case may
be, and provided further that the amount of the Letter of Credit
Commitment of any Issuing Bank shall not be reduced to an amount which is less than the aggregate
amount of all Letter of Credit Liabilities in respect of all Letters of Credit issued or
deemed issued by such Issuing Bank; and provided further that the Revolving Credit
Commitments for TWC shall not be reduced to an amount which is less than the greatest, for any
Borrower, of the sum of (i) the aggregate outstanding principal amount of Revolving
Credit Advances owed by such Borrower plus (ii) the aggregate amount of all Letter of Credit
Liabilities in respect of Letters of Credit issued at the request of
such Borrower; and provided
further that the Revolving Credit Commitments for any Borrower shall not be reduced to an amount
which is less than the sum of (i) the aggregate outstanding principal amount of Revolving Credit
Advances owed by such Borrower plus (ii) the aggregate amount of all Letter of Credit Liabilities
in respect of Letters of Credit issued at the
request of such Borrower; and provided further that the Revolving
Credit Commitments for TWC shall not be reduced to an amount which is less than the aggregate
amount of the Letter of Credit Commitments. Each termination or reduction of any Commitment shall
be permanent. Upon the termination of the Revolving Credit Commitments for MLP, the
termination of all Letters of Credit issued at the request of MLP and the
final repayment of all Obligations owing by MLP, the TWC Guaranty shall be deemed to be
automatically released, subject, however, to reinstatement as contemplated by Section 4.02(b) of
the Guaranty and except that the TWC Guaranty shall continue in full force and effect as to all
agreements and obligations of MLP that by the terms hereof survive the payment in full
of principal and interest.

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     SECTION 2.5. Prepayments.

     (a) Each Borrower may, upon notice to the Agent, (i) before 10:00
a.m. (New York City time) for Base Rate Advances on the date of prepayment and
(ii) upon at least two Business Days’ notice to the Agent for Eurodollar
Rate Advances, stating the proposed date and aggregate principal amount of the prepayment, and if
such notice is given such Borrower shall, prepay the outstanding principal amount of the Revolving
Credit Advances comprising part of the same Revolving Credit Borrowing in whole or
ratably in part, together with accrued interest to the date of such prepayment on
the principal amount prepaid and amounts, if any, required to be paid pursuant to Section
8.4(c) as a result of such prepayment; provided that each prepayment pursuant to this
Section 2.5(a) shall be in an aggregate principal amount of $5,000,000 or an integral multiple of
$1,000,000 in excess thereof.

     (b) Additionally, if at any date the sum of the aggregate amount of all Revolving
Credit Advances owed to any Bank by any Borrower plus the aggregate amount of all Letter, of Credit
Liabilities held by such Bank for all Letters of Credit issued at the request of such Borrower
exceeds such Bank’s Revolving Credit Commitment for such Borrower at such date, such Borrower
shall, on such date, ratably repay the Revolving Credit Advances owed by such Borrower
in a principal amount necessary so that (after giving effect to such repayment) the
sum, for each Bank, of the aggregate amount of all Revolving Credit Advances owed to such Bank by
such Borrower plus the aggregate amount of all Letter of Credit Liabilities held by
such Bank’for all Letters of Credit issued at the request of such Borrower does not exceed such
Bank’s Revolving Credit Commitment for such Borrower at such date.

     (c) At the time of each payment pursuant to Section 2.5(b) by a Borrower, such
Borrower shall also pay accrued interest to the date of such payment on the principal amount paid
and amounts, if any, required to be paid pursuant to Section 8.4(c) as a result of such payment. To
the extent that any amount would be required hereunder to be applied to Revolving Credit Advances
owed by any Borrower but for the fact that no Revolving Credit Advances to such
Borrower remain outstanding, such Borrower will cause such amount first, to be paid on
any outstanding unreimbursed drawings under Letters of Credit issued at the request of such
Borrower and, second to be deposited in an LC Cash Collateral Account in respect of such Borrower.

     (d) All amounts received by the Agent pursuant to any Security Document shall be
applied first, to reimburse the Agent for all costs, fees, expenses and other amounts to the extent
provided in such Security Document, second, to ratably pay the principal of and interest of the
Revolving Credit Advances and unpaid drawings under Letters of Credit, third to ratably pay all
other Obligations, and fourth to be deposited in one or more LC Cash Collateral
Accounts to the extent any Letters of Credit are outstanding.

     SECTION 2.6. Increased Costs.

     (a) If any Bank or Issuing Bank determines that (i) the introduction of or any change in or in
the interpretation, application or applicability of any law or regulation or
(ii) the compliance with any guideline issued or request made by any central bank or other
governmental or monetary authority (whether or not having the force of law), in each case
introduced, changed, issued or made after the Effective Date (in the case of each Bank or Issuing
Bank which was a party to this Agreement on the Effective Date) or after the
effective date of the relevant document (a Transfer Agreement or this Agreement)
pursuant to which a Person becomes a Bank or an Issuing Bank (in the case of each other Bank
or Issuing Bank), affects or would affect the amount of capital required or expected to
be maintained by such Bank or Issuing Bank, as the case may be, or any corporation
controlling such Bank or Issuing Bank, as the case may be, and that the amount of such
capital is increased by or based upon the existence of such Bank’s or such Issuing
Bank’s, as the case may be, commitment to lend hereunder, issue Letters of Credit or
purchase participations in Letters of Credit and other commitments of this type,
then,

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upon demand by such Bank or Issuing Bank, as the case may be (with a copy of such demand
and related certificate (which certificate shall specify in reasonable detail the nature of such
change in capital requirements, the proposed (or actual) compliance change to be adopted by the
applicable Bank or Issuing Bank and the calculations upon which any compensation is claimed
hereunder) to the Agent), the Borrowers shall pay to the Agent within five Business Days of receipt
of such demand for the account of such Bank or Issuing Bank, as the case may be, from time to time
as specified by such Bank or Issuing Bank, as the case may be, additional amounts sufficient to
compensate such Bank or Issuing Bank, as the case may be, or such corporation in the light of such
circumstances, to the extent that such Bank or Issuing Bank, as the case may be, reasonably
determines such increase in capital to be allocable to the existence of such Bank’s or such Issuing
Bank’s, as the case may be, commitment to lend, issue Letters of Credit or purchase participations
in Letters of Credit hereunder. A certificate as to the amount of such additional amounts,
submitted to the Borrower that is obligated to pay such amount and the Agent by such Bank or
Issuing Bank, as the case may be, shall be prima facie evidence of the amount of such additional
amounts absent manifest error. No Bank or Issuing Bank shall have any right to recover any
additional amounts from a Borrower under this Section 2.6(a) for any period more than 90 days prior
to the date such Bank or Issuing Bank, as the case may be, notifies such Borrower of any such
introduction, change or compliance.

     (b) If, due to either (i) the introduction of or any change (other than any change by way of
imposition or increase of reserve requirements included in the Eurodollar Rate Reserve Percentage)
in or in the interpretation, application or applicability of any law or regulation or (ii) the
compliance with any guideline issued or request made by any central bank or other governmental or
monetary authority (whether or not having the force of law), in each case introduced, changed,
issued or made after the Effective Date (in the case of each Bank which was a party to this
Agreement on the Effective Date) or after the effective date of the relevant document (a Transfer
Agreement or this Agreement) pursuant to which a Person becomes a Bank (in case of each other
Bank), there shall be any increase in the cost to any Bank of agreeing to make or making, funding
or maintaining Eurodollar Rate Advances to any Borrower, from that in effect at the Effective Date
or at the date of such relevant document, as the case may be, then such Borrower shall from time to
time, upon demand by such Bank (with a copy of such demand to the Agent), pay to the Agent for the
account of such Bank additional amounts sufficient to compensate such Bank for such increased cost.
A certificate as to the amount of such increased cost, submitted to such Borrower and the Agent by
such Bank, shall be prima facie evidence of the amount of such increased cost absent manifest
error. No Bank shall have the right to recover any such increased costs for any period more than 90
days prior to the date such Bank notifies such Borrower of any such introduction, change,
compliance or proposed compliance.

     (c) In the event that any Bank (other than a Bank that is also an Issuing Bank) (i) makes a
demand for payment under Section 2.8 or 2.17 or this Section 2.6, or (ii) does not agree to provide
its consent or agree to any amendment or waiver pursuant to Section 8.1 where such consent or
agreement to provide an amendment or waiver is required of all the Banks hereto, TWC may within 90
days of such demand or non-consent, if no Default or Event of Default then exists, replace such
Bank with another commercial bank in accordance with all of the provisions of the second and third
sentences of Section 8.5(a), and clauses (b) and (d) of Section 8.5 (including execution of an
appropriate Transfer Agreement); provided that (v) all obligations of such Bank to lend hereunder
or purchase participations in Letters of Credit shall be terminated and the Letter of Credit
Interests held by such Bank and Notes payable to such Bank and all other obligations owed to such
Bank hereunder shall be purchased in full without recourse at par plus accrued interest and fees at
or prior to such replacement, (w) such replacement bank shall be an Eligible Assignee, (x) such
replacement bank shall, from and after such replacement, be deemed for all purposes to be a “Bank”
hereunder with a Revolving Credit Commitment for each Borrower and Letter of Credit Liabilities in
the amount of the Revolving Credit Commitment for each Borrower and Letter of Credit Liabilities of
such Bank being replaced, immediately prior to such replacement (plus, if such

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replacement bank is already a Bank prior to such replacement the respective Revolving Credit
Commitments for each Borrower and Letter of Credit Liabilities of such Bank prior to such
replacement), as such amount may be changed from time to time pursuant hereto, and shall have all
of the rights, duties and obligations hereunder of the Bank being replaced, including obligations
under Section 2.2, (y) such other actions shall be taken by the Borrowers, such Bank and such
replacement bank as may be appropriate to effect the replacement of such Bank with such replacement
bank on terms such that such replacement bank has all of the rights, duties and obligations
hereunder as such Bank (including specification of the information contemplated by Schedule I as to
such replacement bank), and (z) no Bank or Issuing Bank shall be required to increase any
Commitment it may have or to replace such Bank being replaced.

     (d) Before making any demand under this Section 2.6, each Bank agrees to use reasonable
efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a
different Applicable Lending Office if the making of such a designation would avoid the need for,
or reduce the amount of, such increased cost and would not, in the reasonable judgment of such
Bank, be otherwise disadvantageous to such Bank.

     SECTION 2.7. Payments and Computations.

     (a) Each Borrower shall make each payment hereunder to be made by it not later than 11:00 a.m.
(New York City time) on the day when due in Dollars to the Agent at its address referred to in
Section 8.2 (excluding, for such purpose, any address to which copies are to be sent), in each case
in same day funds, without deduction, counterclaim or offset of any kind. The Agent will promptly
thereafter cause to be distributed to the Banks like funds relating to the payment of principal,
interest or any fees payable to the Banks for the account of their respective Applicable Lending
Offices, and like funds relating to the payment of any other amount payable to any Bank or Issuing
Bank to such Bank or Issuing Bank, as the case may be, for the account of its Applicable Lending
Office, in each case to be applied in accordance with the terms of this Agreement. In no event
shall any Bank be entitled to share any fee paid to the Agent pursuant to Section 2.11(a), any
other fee paid to the Agent, as such, any amount applied to reimburse the Agent as contemplated by
Section 2.2(k), Section 2.5(d), Section 6.2 or any other provision of any Credit Document or any
Fronting Fee, other fee, cost or charge paid to an Issuing Bank pursuant to Section 2.11(b)(i).

     (b) (i) All computations of interest based on clause (a) of the definition herein of “Base
Rate” shall be made by the Agent on the basis of a year of 365 or 366 days, as the case may be, and
(ii) all computations of Letter of Credit Fees, Commitment Fees, Fronting Fees and all other fees
and of interest based on the Eurodollar Rate or the Federal Funds Rate and interest pursuant to
Section 2.17 shall be made by the Agent on the basis of a year of 360 days, in each case for the
actual number of days (including the first day but excluding the last day) occurring in the period
for which such interest, Letter of Credit Fees, Commitment Fees, Fronting Fees or other fees are
payable. Each determination by the Agent of an interest rate or fee hereunder shall be conclusive
and binding for all purposes, absent manifest error.

     (c) Whenever any payment hereunder shall be stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day, and such extension of time
shall in such case be included in the computation of payment of interest, Commitment Fee, Letter of
Credit Fee, Fronting Fee or any other fee hereunder, as the case may be; provided, however,
that, if such extension would cause payment of interest on or principal of Eurodollar Rate Advances
to be made in the next following calendar month, such payment shall be made on the next preceding
Business Day.

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     (d) Unless the Agent shall have received notice from a Borrower prior to the date on which any
payment is due by such Borrower to any Bank hereunder that such Borrower will not make such payment
in full, the Agent may assume that such Borrower has made such payment in full to the Agent on such
date and the Agent may, in reliance upon such assumption, cause to be distributed to each Bank on
such due date an amount equal to the amount then due such Bank hereunder. If and to the extent such
Borrower shall not have so made such payment in full to the Agent, each Bank shall repay to the
Agent forthwith on demand such amount distributed to such Bank together with interest thereon, for
each day from the date such amount is distributed to such Bank until the date such Bank repays such
amount to the Agent, at the Federal Funds Rate.

     SECTION 2.8. Taxes.

     (a) Any and all payments by any Borrower hereunder shall be made, in accordance with Section
2.7, free and clear of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings with respect thereto, and all liabilities with respect
thereto, excluding in the case of each Bank, each Issuing Bank and the Agent, (i) taxes imposed on
its net income or net profits, and franchise taxes imposed on it, by the jurisdiction under the
laws of which such Bank, such Issuing Bank or the Agent (as the case may be) is organized or any
political subdivision thereof and (ii) taxes imposed as a result of a present or former connection
between such Bank, such Issuing Bank or the Agent, as the case may be, and the jurisdiction
imposing such tax or any political subdivision thereof (other than any such connection arising
solely from such Bank, such Issuing Bank or the Agent, as the case may be, having executed or
delivered, or performed its obligations or received a payment under, or taken any other action
related to any Credit Document) and, in the case of each Bank, taxes imposed on its net income or
net profits, and franchise taxes imposed on it, by the jurisdiction of such Bank’s Applicable
Lending Office or any political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities being hereinafter referred to as “Taxes”). If any
Borrower shall be required by law to deduct any Taxes from or in respect of any sum payable
hereunder or under any Note to any Bank, any Issuing Bank or the Agent, (i) the sum payable shall
be increased as may be necessary so that after making all required deductions for Taxes (including
deductions for Taxes applicable to additional sums payable under this Section 2.8), such Bank, such
Issuing Bank or the Agent, as the case may be, receives an amount equal to the sum it would have
received. had no such deductions for Taxes been made, (ii) such Borrower shall make such deductions
and (iii) such Borrower shall pay the full amount deducted to the relevant taxation authority or
other authority in accordance with applicable law.

     (b) In addition, each Borrower agrees to pay all present or future filing or recording fees,
stamp or documentary taxes and all other excise or property taxes, charges or similar levies which
arise from any payment made by such Borrower hereunder or from the execution, delivery, filing,
recording or registration of, or otherwise with respect to, any Credit Document (herein referred to
as “Other Taxes”).

     (c) Each Borrower will indemnify each Bank, each Issuing Bank and the Agent for the full
amount of Taxes or Other Taxes (including any Taxes or Other Taxes imposed by any jurisdiction on
amounts payable under this Section 2.8) owed and paid by such Bank, such Issuing Bank or the Agent,
as the case may be, and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30 days from the date such
Bank, such Issuing Bank or the Agent, as the case may be, makes written demand therefor;
provided that such Borrower shall have no liability pursuant to this clause (c) of this
Section 2.8 to indemnify a Bank, an Issuing Bank or the Agent for Taxes or Other Taxes which were
paid by such Bank, such Issuing Bank or the Agent, as the case may be, more than ninety days prior
to such written demand for indemnification.

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     (d) In the event that a Bank, an Issuing Bank or the Agent receives a written communication
from any governmental authority with respect to an assessment or proposed assessment of any Taxes,
such Bank, such Issuing Bank or Agent, as the case may be, shall promptly notify TWC in writing and
provide TWC with a copy of such communication. The Agent’s, an Issuing Bank’s or a Bank’s failure
to provide a copy of such communication to TWC shall not relieve TWC of any of its obligations
hereunder.

     (e) Promptly following payment of Taxes by or at the direction of any Borrower, such Borrower
will furnish to the Agent, at its address referred to in Section 8.2, the original or a certified
copy of a receipt evidencing payment thereof (or, if no such receipt is reasonably available, other
evidence of payment reasonably acceptable to the Agent). Should any Bank, any Issuing Bank or the
Agent ever receive any refund, credit or deduction from any taxing authority to which such Bank,
such Issuing Bank or the Agent, as the case may be, would not be entitled but for the payment by
such Borrower of Taxes or Other Taxes as required by this Section 2.8 (it being understood that the
decision as to whether or not to claim, and if claimed, as to the amount of any such refund, credit
or deduction shall be made by such Bank, such Issuing Bank or the Agent, as the case may be, in its
reasonable judgment), such Bank, such Issuing Bank or the Agent, as the case may be, thereupon
shall repay to such Borrower an amount with respect to such refund, credit or deduction equal to
any net reduction in taxes actually obtained by such Bank, such Issuing Bank or the Agent, as the
case may be, and determined by such Bank, such Issuing Bank or the Agent, as the case may be, to be
attributable to such refund, credit or deduction.

     (f) Each Bank organized under the laws of a jurisdiction outside the United States shall on or
prior to the date of its execution and delivery of this Agreement in the case of each Bank which is
a party to this Agreement on the date this Agreement becomes effective and on the date the Transfer
Agreement pursuant to which it becomes a Bank is first effective in the case of each other Bank,
and from time to time thereafter as necessary or appropriate (but only so long thereafter as such
Bank remains lawfully able to do so), provide the Agent and each Borrower with two original
Internal Revenue Service Forms W-8BEN or W-8ECI (or, in the case of a Bank that has provided a
certificate to the Agent that it is not (i) a “bank” as that term is used in Section 881(c)(3)(A)
of the Code, (ii) a ten-percent shareholder (within the meaning of Section 871(h)(3)(B) of the
Code) of such Borrower or (iii) a controlled foreign corporation related to such Borrower (within
the meaning of Section 864(d)(4) of the Code), Internal Revenue Service Forms W-8BEN), or any
successor or other form prescribed by the Internal Revenue Service, certifying that such Bank is
exempt from or entitled to a reduced rate of United States withholding tax on payments pursuant to
this Agreement or any other Credit Document or, in the case of a Bank that has certified that it is
not a “bank” as described above, certifying that such Bank is a foreign corporation. If the forms.
provided by a Bank at the time such Bank first becomes a party to this Agreement indicate a United
States interest withholding tax rate in excess of zero, withholding tax at such rate shall be
considered excluded from Taxes unless and until such Bank provides the appropriate forms certifying
that a lesser rate applies, whereupon withholding tax at such lesser rate only shall be considered
excluded from Taxes for periods governed by such forms.

     (g) For any period with respect to which a Bank has failed to provide any Borrower with the
appropriate form, certificate or other document required by subsection (f) of this Section 2.8
(other than if such failure is due to a change in the applicable law, or in the interpretation or
application thereof, occurring after the date on which a form, certificate or other document
originally was required to be provided) such Bank shall not be entitled to indemnification under
subsection (a) or (c) of this Section 2.8 with respect to Taxes imposed by the United States by
reason of such failure; provided, however, that should a Bank become subject to
Taxes because of its failure to deliver a form, certificate or other document required hereunder,
the Borrowers shall take such steps as such Bank shall reasonably request (at such Bank’s expense)
to assist such Bank in recovering such Taxes.

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     (h) Any Bank claiming any additional amounts payable pursuant to this Section 2.8 agrees to
use reasonable efforts to change the jurisdiction of its Applicable Lending Office if the making of
such a change would avoid the need for, or reduce the amount of, any such additional amounts that
may thereafter accrue and would not, in the reasonable judgment of such Bank, be otherwise
materially disadvantageous to such Bank.

     (i) If a Borrower determines in good faith that a reasonable basis exists for contesting a
Tax, the relevant Bank, or the Agent, as applicable, shall provide reasonable cooperation to such
Borrower in challenging such Tax at such Borrower’s expense and if requested by such Borrower in
writing; provided, however, that no Bank nor the Agent, as applicable, shall be
required to take any action hereunder which, in the reasonable discretion of such Bank or the
Agent, as applicable, would cause such Bank or its Applicable Lending Office or the Agent, as
applicable, to suffer a legal, regulatory or material economic disadvantage.

     (j) Without prejudice to the survival of any other agreement of the Borrowers hereunder, the
agreements and obligations of the Borrowers contained in this Section 2.8 shall survive the payment
in full of principal and interest hereunder and the Termination Date.

     (k) Notwithstanding any provision of this Agreement or the Notes to the contrary, this Section
2.8 shall be the sole provision governing indemnities for and claims for Taxes under this
Agreement.

     (l) Notwithstanding any other provision in this Section 2.8, no additional amount shall be
required to be paid by any Borrower under Section 2.8(a) or 2.8(c) to any Bank organized under the
laws of a jurisdiction outside the United States in respect of Taxes or any liabilities (including
penalties, interest and expenses arising therefrom or with respect thereto), except to the extent
that any change after the Effective Date (in the case of each Bank which was a party to this
Agreement on the Effective Date) or after the effective date of the relevant document (a Transfer
Agreement or this Agreement) pursuant to which a Person becomes a Bank (in case of each other Bank)
in any such requirement for a deduction, withholding or payment of Taxes described in this Section
2.8 shall result in an increase in the rate of such deduction, withholding or payment from that in
effect at the Effective Date (in the case of each Bank which was a party to this Agreement on the
Effective Date) or at the date of such relevant document (in the case of each other Bank). For
avoidance of doubt, this Section 2.8(1) does not apply to Other Taxes.

     SECTION 2.9. Sharing of Payments, Etc. If any Bank shall obtain any payment (whether
voluntary or involuntary, or through the exercise of any right of set-off or otherwise) on account
of the Revolving Credit Advances owed to it or its Letter of Credit Interest (other than pursuant
to Section 2.6, 2.8, 2.17, 8.4(b) or 8.4(c)) in excess of its ratable share of payments on account
of all Revolving Credit Advances and Letter of Credit Interests obtained by all the Banks, such
Bank shall forthwith purchase from the other Banks such participations in the Revolving Credit
Advances and Letter of Credit Interests of such other Banks as shall be necessary to cause such
purchasing Bank to share the excess payment ratably with each of
them; provided that if all or any
portion of such excess payment is thereafter recovered from such purchasing Bank, such purchase
from each Bank shall be rescinded and such Bank shall repay to the purchasing Bank the purchase
price to the extent of such Bank’s ratable share (according to the proportion of (i) the amount of
the participation purchased from such Bank as a result of such excess payment to (ii) the total
amount of such excess payment) of such recovery together with an amount equal to such Bank’s
ratable share (according to the proportion of (i) the amount of such Bank’s required repayment to
(ii) the total amount so recovered from the purchasing Bank) of any interest or other amount paid
or payable by the purchasing Bank in respect of the total amount so recovered. Each Borrower agrees
that any Bank so purchasing a participation from another Bank pursuant to this Section 2.9 may, to
the fullest extent permitted by law, exercise all its rights of payment (including the right of
set-off) with

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respect to such participation as fully as if such Bank were the direct creditor of such Borrower in
the amount of such participation. For avoidance of doubt, in no event shall the Borrowers be liable
for duplicative payments under this Section 2.9 in respect of any Obligations.

     SECTION 2.10. Evidence of Debt. (a) Each Bank and Issuing Bank shall maintain in
accordance with its usual practice an account or accounts evidencing the indebtedness of each
Borrower to such Bank or Issuing Bank resulting from each Revolving Credit Advance or Letter of
Credit Interest owing to such Bank or Issuing Bank, as the case may be, from time to time,
including the amounts of principal and interest payable and paid to such Bank or Issuing Bank from
time to time hereunder. Each Borrower agrees that upon notice by any Bank to such Borrower (with a
copy of such notice to the Agent) to the effect that a promissory note or other evidence of
indebtedness is required or appropriate in order for such Bank to evidence (whether for purposes of
pledge, enforcement or otherwise) the Revolving Credit Advances to such Borrower owing to, or to be
made by, such Bank, such Borrower shall promptly execute and deliver to such Bank, with a copy to
the Agent, a Note in substantially the form of Exhibit G hereto payable to the order of such Bank.
All references to Notes in the Credit Documents shall mean Notes, if any, to the extent issued
hereunder.

     (b) In addition to the entries contemplated by Section 8.5(c), the Register maintained by the
Agent shall set forth (i) the date and amount of each Letter of Credit and Revolving Credit
Borrowing made hereunder, the Type of Revolving Credit Advances comprising such Revolving Credit
Borrowing and, if appropriate, the Interest Period applicable thereto, and (ii) the amount of any
interest due and payable from each Borrower to each Bank hereunder.

     (c) Entries made in good faith by the Agent in the Register pursuant to subsection (b) above,
and by each Bank or Issuing Bank in its account or accounts pursuant to subsection (a) above, shall
be prima facie evidence of the matters set forth therein, absent
manifest error; provided, however
that the failure of the Agent or such Bank or Issuing Bank to make an entry, or any finding that an
entry is incorrect, in the Register or such account or accounts shall not limit or otherwise affect
the obligations of any Credit Party under any Credit Document.

     SECTION 2.11. Fees.

     (a) Agent’s Fees. TWC agrees to pay to the Agent, for its sole account, such fees as
may be separately agreed to in writing by TWC and the Agent.

     (b) Letter of Credit Fees.

          (i) Fronting Fee and Other Fees and Charges of Issuing Banks. Each Borrower agrees to
pay to the Agent for the account of each Issuing Bank a fronting fee (a “Fronting Fee”)
based on the Available Amount of each Letter of Credit issued at the request of such Borrower (for
the stated duration thereof) issued by such Issuing Bank in an amount equal to 0.15% per annum. All
Fronting Fees payable pursuant to this Section 2.11(b)(i) shall be payable in arrears for each
Fiscal Quarter on the first Business Day following the end of such Fiscal Quarter, on the
Termination Date and on demand from time to time during the continuance of an Event of Default. In
addition, each Borrower shall pay directly to each Issuing Bank for its own account the customary
issuance, presentation, amendment and other processing fees, and other standard costs and charges,
of such Issuing Bank relating to Letters of Credit issued at the request of such Borrower as from
time to time in effect. Such customary fees and standard costs and charges are due and payable on
demand and are nonrefundable.

          (ii) Participating Banks. Each Borrower agrees to pay to the Agent for the account of
each Bank a letter of credit fee (a “Letter of Credit Fee”) based on such Bank’s LC
Participation

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Percentage of the average daily aggregate Available Amount of all Letters of Credit issued at the
request of such Borrower outstanding from time to time at a rate per annum equal from time to time
to the Applicable Margin for Eurodollar Rate Advances for such Borrower in effect from time to time
(for the stated duration thereof). All amounts payable pursuant to this Section 2.11(b)(ii) shall
be paid in arrears on the last Business Day of each Fiscal Quarter, on the Termination Date and on
demand from time to time during the continuance of an Event of Default.

     (c) Commitment Fees. TWC agrees to pay to the Agent for the account of each Bank a
commitment fee (a “Commitment Fee”), in an amount equal to the Applicable Commitment Fee
Rate in effect from time to time multiplied by the average daily amount of such Bank’s Unused
Revolving Credit Commitment for TWC (for purposes of computing Commitment Fees only, Revolving
Credit Advances made to any Borrower shall be considered to have been made to TWC and Letters of
Credit issued at the request of any Borrower shall be considered to have been issued at the request
of TWC, and accordingly, for purposes of computing Commitment Fees only, both shall be considered
to be usage of such Revolving Credit Commitment for TWC). All amounts payable pursuant to this
Section 2.11(c) shall be paid in arrears on the last Business Day of each Fiscal Quarter and on
the Termination Date.

     SECTION 2.12. Repayment of Revolving Credit Advances. Each Borrower shall repay to the
Agent for the ratable account of the Banks on the date set forth in clause (i) of the definition
herein of Termination Date, or such earlier date as may be applicable pursuant to Article VI, the
aggregate principal amount of the Revolving Credit Advances made to such Borrower then outstanding.

     SECTION 2.13. Interest.

     (a) Scheduled Interest. Each Borrower shall pay interest on the unpaid principal
amount of each Revolving Credit Advance made to such Borrower from the date of such Revolving
Credit Advance until such principal amount shall be paid in full, at the following rates per annum:

          (i) Base Rate Advances. During such periods as such Revolving Credit Advance is a Base
Rate Advance, a rate per annum equal at all times to the sum of (x) the Base Rate in effect from
time to time plus (y) the Applicable Margin in effect from time to time for such Borrower as to
Base Rate Advances, payable in arrears quarterly on the last Business Day of each Fiscal Quarter
during such periods and on the date such Base Rate Advance shall be Converted or paid in full.

          (ii) Eurodollar Rate Advances. During such periods as such Revolving Credit Advance is
a Eurodollar Rate Advance, a rate per annum equal at all times during each Interest Period for such
Revolving Credit Advance to the sum of (x) the Eurodollar Rate for such Interest Period for such
Revolving Credit Advance plus (y) the Applicable Margin in effect from time to time for such
Borrower as to Eurodollar Rate Advances, payable in arrears on the last day of such Interest Period
and, if such Interest Period has a duration of more than three months, on each day that occurs
during such Interest Period every three months from the first day of such Interest Period and on
the date such Eurodollar Rate Advance shall be Converted or paid in full.

     (b) Default Interest. Upon the occurrence and during the continuance of an Event of
Default, each Borrower shall pay, to the fullest extent permitted by law, interest on (i) the past
due principal amount (if any) of (x) each Revolving Credit Advance owing to each Bank by such
Borrower, payable in arrears on demand and (y) each past due Reimbursement Obligation (if any)
owing by such Borrower, payable in arrears on demand, at a rate per annum equal to 2% per annum
above the rate per annum required to be paid on such Revolving Credit Advance pursuant to Section
2.13(a) or such rate per annum required to be paid on such Reimbursement Obligation pursuant to
Section 2.2(c) and (ii) the amount of any interest, Fronting Fee, Commitment Fee, Letter of Credit
Fee or any other fee or other amount

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payable hereunder that is not paid when due (giving effect to any grace period), from the date such
amount shall be due until such amount shall be paid in full, payable in arrears on the date such
amount shall be paid in full and on demand, at a rate per annum equal at all times to 2% per annum
above the rate per annum required to be paid on Base Rate Advances owed by such Borrower pursuant
to Section 2.13(a)(i).

     SECTION 2.14. Interest Rate Determination.

     (a) The Agent shall give prompt notice to the Borrowers and the Banks of the applicable
interest rate determined by the Agent for purposes of Section 2.13(a)(i) or 2,13(a)(ii).

     (b) If, with respect to any Eurodollar Rate Advances, the Majority Banks notify the Agent that
either (I) the Eurodollar Rate for any Interest Period for such Eurodollar Rate Advances will not
adequately reflect the cost to such Majority Banks of making, funding or maintaining their
respective Eurodollar Rate Advances for such Interest Period, or (2) Dollar deposits for the
relevant amounts and Interest Period for their respective Eurodollar Rate Advances are not
available to them in the London interbank market, the Agent shall forthwith so notify the Borrowers
and the Banks, whereupon (i) each Eurodollar Rate Advance will automatically, on the last day of
the then existing Interest Period therefor, Convert into a Base Rate Advance, and (ii) the
obligation of the Banks to make, or to Convert Revolving Credit Advances into, Eurodollar Rate
Advances shall be suspended until the Agent shall notify the Borrowers and the Banks that the
circumstances causing such suspension no longer exist.

     (c) If a Borrower shall fail to select the duration of any Interest Period for any Eurodollar
Rate Advances in accordance with the provisions contained in the definition of “Interest Period” in
Section 1.01, the Agent will forthwith so notify such Borrower and the Banks and such Revolving
Credit Advances will automatically, on the last day of the then existing Interest Period therefor,
Convert into Base Rate Advances.

     (d) On the date on which the aggregate unpaid principal amount of Eurodollar Rate Advances
comprising any Revolving Credit Borrowing shall be reduced, by payment or prepayment or otherwise,
to less than $5,000,000, such Revolving Credit Advances shall automatically Convert into Base Rate
Advances and the applicable Borrower shall pay any amounts required to be paid pursuant Section
8.4(c) as a result of such Conversion.

     (e) If any Event of Default exists as to any Borrower, (i) each Eurodollar Rate Advance made
to such Borrower will automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance and (ii) the obligation of the Banks to make Eurodollar Rate
Advances to such Borrower, and to Convert Advances made to such Borrower into Eurodollar Rate
Advances, shall be suspended.

     SECTION 2.15. Optional Conversion of Revolving Credit Advances. Any Borrower may on
any Business Day, upon notice given to the Agent not later than 11:00 a.m. (New York City time) on
the third Business Day prior to the date of the proposed Conversion and subject to the provisions
of Sections 2.14 and 2.16, Convert all Revolving Credit Advances of one Type comprising the same
Revolving Credit Borrowing made to such Borrower into Revolving Credit Advances of the other Type;
provided, however, that any Conversion of Eurodollar Rate Advances into Base Rate
Advances shall be made only on the last day of an Interest Period for such Eurodollar Rate Advances
and any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in an amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof. Each such notice of a
Conversion shall, within the restrictions specified above, specify (a) the date of such Conversion,
(b) the Revolving Credit Advances to be Converted and (c) if such Conversion is into Eurodollar
Rate Advances, the duration of the initial Interest Period for each

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such Revolving Credit Advance. Each notice of Conversion shall be irrevocable and binding on such
Borrower.

     SECTION 2.16. Illegality. Notwithstanding any other provision of this Agreement, if
any Bank shall notify the Agent that the introduction of or any change in or in the interpretation
of any law or regulation makes it unlawful, or any central bank or other governmental authority
having relevant jurisdiction asserts that it is unlawful, for any Bank or its Eurodollar Lending
Office to perform its obligations hereunder to make Eurodollar Rate Advances or to fund or maintain
Eurodollar Rate Advances hereunder, (a) each Eurodollar Rate Advance will automatically, upon such
demand, Convert into a Base Rate Advance and (b) the obligation of the Banks to make Eurodollar
Rate Advances or to Convert Revolving Credit Advances into Eurodollar Rate Advances shall be
suspended until the Agent shall notify the Borrowers and the Banks that the circumstances causing
such suspension no longer exist.

     SECTION 2.17. Additional Interest on Eurodollar Rate Advances. Each Borrower shall pay
to each Bank, so long as such Bank shall be required under regulations of the Federal Reserve Board
to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency
Liabilities, additional interest on the unpaid principal amount of each Eurodollar Rate Advance of
such Bank to such Borrower, from the date of such Revolving Credit Advance until such principal
amount is paid in full, at an interest rate per annum equal at all times to the remainder obtained
by subtracting (a) the Eurodollar Rate for the Interest Period for such Revolving Credit Advance
from (b) the rate obtained by dividing such Eurodollar Rate by a percentage equal to 100% minus the
Eurodollar Rate Reserve Percentage of such Bank for such Interest Period, payable on each date on
which interest is payable on such Revolving Credit Advance. Such additional interest shall be
determined by such Bank and notified to such Borrower through the Agent. A certificate as to the
amount of such additional interest submitted to such Borrower and the Agent by such Bank shall be
conclusive and binding for all purposes, absent manifest error. No Bank shall have the right to
recover any additional interest pursuant to this Section 2.17 for any period more than 90 days
prior to the date such Bank notifies such Borrower that additional interest may be charged pursuant
to this Section 2.17.

     SECTION 2.18. Nature of Obligations. Notwithstanding anything in this Agreement to the
contrary, the respective obligations of the Borrowers under the Credit Documents are several and
not joint. For avoidance of doubt, and without limitation of the preceding sentence, it is agreed
that (i) no Borrower shall be liable for the Revolving Credit Advances (or interest or fees with
respect thereto) made to a different Borrower under Section 2.1(a), and no Borrower shall be liable
for the Reimbursement Obligations (or related fees) with respect to Letters of Credit issued at the
request of a different Borrower pursuant to Section 2.1(b), (ii) with respect to each Borrower, the
obligations set forth in Section 2.6(a) shall only apply in respect of the commitment of any Bank
or Issuing Bank to lend to, or to issue (or purchase participations in) Letters of Credit issued at
the request of, such Borrower, (iii) with respect to the indemnification obligations set forth in
subsection 2.8(c), each Borrower shall only be responsible for such obligations that result from
Taxes or Other Taxes in connection with Revolving Credit Advances made to, or Letters of Credit
issued at the request of, or that otherwise pertain to, such Borrower or any of its Subsidiaries,
(iv) with respect to any representation and warranty made by a Borrower pursuant to Section 3.2,
such representation and warranty shall only be made by such Borrower as provided in clause (v) of
this Section 2.18, (v) with respect to the representations and warranties made in Article N or, if
applicable, any other Credit Document, each Borrower makes such representations and warranties only
with respect to, and only to the extent applicable to, such Borrower and its Subsidiaries, and (vi)
with respect to covenants set forth in Article V, each Borrower is only responsible for compliance
with such covenants only with respect to, and only to the extent applicable to, such Borrower and
its Subsidiaries; provided that this Section 2.18 shall not limit or impair any Guaranty, any
security agreement or any pledge delivered in order to comply with Section 6.2 or any Security
Document. Furthermore, without limitation of the foregoing and notwithstanding anything in this
Agreement or implied by law to the

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contrary, the MLP shall have no obligation to cause any other Credit Party to take any action
pursuant to this Agreement and shall have no responsibility for, or liability as a result of, any
action taken by any other Credit Party pursuant to this Agreement, including without limitation,
the indemnification obligations set forth in subsection 8.4(b), with respect to which the MLP shall
only be responsible for such obligations that result from matters pertaining to or otherwise
relating to the MLP or any of its Subsidiaries.

ARTICLE III

DOCUMENTS AND CONDITIONS

     SECTION 3.1. Closing Documents. On or before the date hereof, the Borrowers agree to
deliver, or cause to be delivered, counterparts of this Agreement duly executed by the Borrowers
and satisfy, or cause to be satisfied, the following matters (all in form and substance reasonably
satisfactory to the Agent):

     (a) The Agent shall have received a Note from each Borrower for each Bank that has given
notice pursuant to Section 2.10 requesting a Note (but only if the Agent has actually received a
copy of such notice and if such Bank was a party to the 2005 Credit Agreement, such Bank has
delivered the outstanding promissory notes issued to it thereunder to the Agent for return to the
respective Borrowers, unless TWC has waived in writing the requirement that such notes be so
delivered) and the Guaranties.

     (b) The Agent shall have received certified copies of (1) the resolutions of the Board of
Directors, or an authorized committee thereof or other relevant Person, (i) of each Borrower
authorizing the execution of this Agreement, the Notes and each Notice of Letter of Credit and
Notice of Revolving Credit Borrowing, and any other Credit Documents to which such Borrower is a
party, and (ii) of each other Credit Party that is a party, on the date hereof, to any Credit
Document authorizing the execution of each such Credit Document and (2) all other documents, in
each case evidencing any necessary company action, if any, with respect to each such Credit
Document and the transactions thereunder and hereunder.

     (c) The Agent shall have received a certificate of the Secretary or an Assistant Secretary of
each Credit Party that is a party, on the date hereof, to any Credit Document certifying the name
and true signature of an officer of such Credit Party or other relevant Person authorized to sign
each Credit Document to which it is a party and the other documents to be delivered by it hereunder
and thereunder.

     (d) The Agent shall have received a copy of a certificate of the Secretary of State of the
jurisdiction of formation of, or of an Authorized Officer or other representative of, each Credit
Party that is a party, on the date hereof, to any Credit Document, dated reasonably near the date
hereof, certifying (i) as to a hue and correct copy of the charter or other organizational
documents of such Credit Party, and each amendment thereto on file in such Secretary’s office and
(ii) that such Credit Party has paid all franchise taxes due prior to the date of such certificate.

     (e) The Agent shall have received opinions of each of (i) James J. Bender, Esq., General
Counsel of TWC, substantially in the form of Exhibit A and (ii) Gibson, Dunn & Crutcher LLP,
counsel to the Borrowers, substantially in the form of Exhibit B.

     (f) The Agent shall have received a certificate of each Credit Party (or of its
representative) that is a party, on the date hereof, to any Credit Document, signed on behalf of
such Credit Party by an Authorized Officer thereof or signed by another representative, dated as of
the date hereof (the statements made in which certificate shall be hue on and as of the date
hereof), certifying as to (i) the absence of any amendments to the charter or other organizational
documents of such Credit Party not included in the

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certificate referred to in clause (d) above, (ii) a true and correct copy of the bylaws, if any, of
such Credit Party as in effect on the date on which the resolutions referred to in clause (b) were
adopted and on the date hereof, (iii) the due incorporation or formation and good standing and
valid existence of such Credit Party as an entity organized under the laws of the jurisdiction of
its incorporation or organization, (iv) the truth, in all material respects, of the representations
and warranties (other than Added L/C Representations) of such Credit Party and its Subsidiaries
contained in this Agreement and the Credit Documents delivered on or before the date hereof as
though made on and as of the date hereof other than any such representations or warranties that, by
their terms, refer to a specific date other than the date hereof, in which case as of such specific
date and (v) the absence of any event occurring and continuing, or resulting from, the consummation
of the transactions hereunder or pursuant to the Credit Documents delivered on or before the date
hereof, that constitutes a Default or an Event of Default.

     (g) The Agent shall have received a certificate of an Authorized Officer of TWC certifying
that the insurance maintained by TWC and its Subsidiaries meets the requirements set forth in
Section 5.1(c).

     (h) TWC shall have paid in full all accrued fees of the Agent, the Syndication Agent and the
Joint Lead Arrangers to the extent required to be paid hereunder (or to the extent otherwise agreed
to by the Agent and TWC) and presented for payment.

     (i) The Agent shall have received a certificate of an Authorized Officer of each Borrower
stating to the effect that (i) all principal, interest, fees and other amounts payable under the
2005 Credit Agreement and listed in the letter from the “Agent” (as defined in the 2005 Credit
Agreement) to the Borrowers dated on or about the Effective Date have been, or will be
contemporaneously with the initial Revolving Credit Advance, paid in full, and (ii) there is no
outstanding “Notice of Letter of Credit” (as defined in the 2005 Credit Agreement) or outstanding
“Notice of Revolving Credit Borrowing” (as defined in the 2005 Credit Agreement).

     (j) The Agent shall have received a certificate of an Authorized Officer of TWC stating to the
effect that the RMT Loan Agreement has been paid in full.

     SECTION 3.2. Conditions Precedent to a Revolving Credit Advance and an Issuance of a
Letter of Credit. The obligation of each Bank to make a Revolving Credit Advance to, and each
Issuing Bank to issue or increase the amount of, or to add (as contemplated by Section 2.2(a)(2)) a
letter of credit to this Agreement as, a Letter of Credit at the request of; any Borrower shall be
subject to the conditions precedent that (i) the Agent shall have received a Notice of Revolving
Credit Borrowing in the form of Exhibit D-2 hereto for the Revolving Credit Borrowing of which such
Revolving Credit Advance is a part or a Notice of Letter of Credit in the form of Exhibit D-1
hereto, as the case may be, and (ii) on the date of such Revolving Credit Borrowing or issuance,
increase or addition of such Letter of Credit, the following statements shall be true (and each of
the giving of the applicable Notice of Revolving Credit Borrowing or Notice of Letter of Credit and
the acceptance by such Borrower of the proceeds of such Revolving Credit Borrowing or issuance,
increase or addition of such Letter. of Credit shall constitute a representation and warranty by
such Borrower (or TWC as set forth in the proviso to subsection 3.2(a) below) that on the date of
such Revolving Credit Borrowing or such Letter of Credit is issued, increased or added such
statements are true):

     (a) each of the representations and warranties contained in Section 4.1 and each of the
representations and warranties (other than Added L/C Representations) contained in any other Credit
Document (other than, if the Pipeline Holdco Release Date has occurred, the Pipeline Holdco
Guaranty) are correct in all material respects on and as of the date of such Revolving Credit
Borrowing or issuance, increase or addition of such Letter of Credit, before and after giving
effect to such Revolving Credit

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Borrowing or issuance, increase or addition of such Letter of Credit, as though made on and as of
such date (unless such representation and warranty speaks solely as of a particular date or a
particular period, in which case, as of such date or for such period); provided that if
such Borrower is MLP, NWP or TGPL, such representations and warranties are made by such Borrower
only with respect to such Borrower and its Subsidiaries and those representations and warranties
referred to above not made by such Borrower are deemed made by TWC; and

     (b) no event has occurred and is continuing, or would result from such Revolving Credit
Borrowing or issuance, increase or addition of such Letter of Credit, which constitutes a Default
or Event of Default.

     SECTION 3.3. Effectiveness of Agreement. The Agent shall notify the Borrowers when it
reasonably believes that this Agreement has become effective, and such notice shall be conclusive
and binding on all parties to the Credit Documents (provided that such effectiveness shall not be
conditioned on such notice). Upon the making of the initial Revolving Credit Advance, all the
conditions set forth in Section 3.1 shall be deemed satisfied or waived.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     SECTION 4.1. Representations and Warranties of the Borrowers. Each Borrower, with
respect to itself and its Subsidiaries only, represents and warrants, on the date hereof, on the
date of each Revolving Credit Borrowing or issuance or increase in the amount of any Letter of
Credit and each Added L/C Effective Date, as follows:

     (a) Each Borrower is duly organized or validly formed, validly existing and (if applicable) in
good standing under the laws of the State of Delaware and has all corporate, limited partnership or
limited liability company powers and all governmental licenses, authorizations, certificates,
consents and approvals required to carry on its business as now conducted in all material respects,
except where failure to be in good standing or to have those licenses, authorizations,
certificates, consents and approvals could not reasonably be expected to have a Material Adverse
Effect in respect of such Borrower. Each Material Subsidiary of each Borrower is duly organized or
validly formed, validly existing and (if applicable) in good standing under the laws of its
jurisdiction of incorporation or formation, except where the failure to be so organized or formed,
existing and in good standing could not reasonably be expected to have a Material Adverse Effect in
respect of such Borrower. Each Material Subsidiary of a Borrower has all corporate, limited
partnership or limited liability company powers and all governmental licenses, authorizations,
certificates, consents and approvals required to carry on its business as now conducted in all
material respects, except for those licenses, authorizations, certificates, consents and approvals
the failure to have which could not reasonably be expected to have a Material Adverse Effect in
respect of such Borrower.

     (b) The execution, delivery and performance by each of the Borrowers and the other Credit
Parties of the Credit Documents to which it is shown as being a party and the consummation of the
transactions contemplated thereby are within such Borrower’s or such other Credit Party’s, as the
case may be, corporate, limited partnership or limited liability company powers, have been duly
authorized by all necessary corporate, limited partnership or limited liability company action, do
not contravene (i) any Borrower’s or such other Credit Party’s, as the case may be, charter,
by-laws or formation agreement or (ii) law or any restriction under any material agreement binding
on or affecting any Borrower or other Credit Party and will not result in or require the creation
or imposition of any Lien prohibited by this Agreement.

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     (c) No material authorization or approval or other action
by, and no notice to or filing with, any Governmental Authority is required for the due execution,
delivery and performance by any Credit Party of any Credit Document to
which it is a party, or the consummation of the transactions contemplated thereby.

     (d) Each Credit Document has been duly executed and delivered by each
appropriate Credit Party, and is the legal, valid and binding obligation of each such
Credit Party, enforceable against each such Credit Party, in accordance with its terms, except as
such enforceability may be limited by any applicable bankruptcy, insolvency, reorganization,
moratorium or similar law affecting creditors’ rights generally and by general
principles of equity, and except that the representations in this sentence in respect of the
Pipeline Holdco Guaranty are not made after the Pipeline Holdco Release Date.

     (e) (i) The Consolidated balance sheet of TWC and its Subsidiaries as at December 31, 2005,
and the related Consolidated statements of income and cash flows of TWC and its Subsidiaries for
the fiscal year then ended, copies of which have been furnished to each Bank, fairly present in all
material respects the Consolidated financial condition of TWC and its Subsidiaries as
at such date and the Consolidated results of operations of TWC and its Subsidiaries for the year
ended on such date, all in accordance with GAAP. As of the date hereof only, from
December 31, 2005 to the date of this Agreement, there has been no material adverse change in
the business, condition (financial or otherwise), operations, properties or
prospects of TWC and its Subsidiaries (other than Non-Recourse Subsidiaries and International
Subsidiaries), taken as a whole.

          (ii) The Consolidated balance sheet of NWP and its Subsidiaries as at December 31, 2005, and
the related Consolidated statements of income and cash flows of NWP and its
Subsidiaries for the fiscal year then ended, copies of which have been furnished to
each Bank, fairly present in all material respects the Consolidated financial condition of NWP
and its Subsidiaries as at such date and the Consolidated results of operations of NWP
and its Subsidiaries for the year ended on such date, all in accordance with GAAP. As of the
date hereof only, from December 31, 2005 to the date of this Agreement, there has been no material
adverse change in the business, condition (financial or otherwise), operations,
properties or prospects of NWP and its Subsidiaries (other than Non-Recourse
Subsidiaries and International Subsidiaries), taken as a whole.

          (iii) The Consolidated balance sheet of TGPL and its Subsidiaries as at December 31, 2005, and
the related Consolidated statements of income and cash flows of TGPL and its Subsidiaries for the
fiscal year then ended, copies of which have been furnished to each Bank, fairly present in all
material respects the Consolidated financial condition of TGPL and its Subsidiaries as at such date
and the Consolidated results of operations of TGPL and its Subsidiaries for the year
ended on such date, all in accordance with GAAP. As of the date hereof only, from December 31, 2005
to the date of this Agreement, there has been no material adverse change in
the business, condition (financial or otherwise), operations, properties or prospects
of TGPL and its Subsidiaries (other than Non-Recourse Subsidiaries and International Subsidiaries),
taken as a whole.

          (iv) The Consolidated balance sheet of MLP and its Subsidiaries as at December 31, 2005, and
the related Consolidated statements of income and cash flows of MLP and its Subsidiaries for the
fiscal year then ended, copies of which have been furnished to each Bank, fairly
present in all material respects the Consolidated financial condition of MLP and its Subsidiaries
as at such date and the Consolidated results of operations of MLP and its Subsidiaries for the year
ended on such date, all in accordance with GAAP. As of the date hereof only, from
December 31, 2005 to the date of this Agreement, there has been no material adverse
change in the business, condition (financial or otherwise), operations, properties or
prospects of MLP and its Subsidiaries (other than Non-Recourse Subsidiaries and
International Subsidiaries), taken as a whole.

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     (f) There is, as to each Borrower (other than the MLP), no
pending or, to the knowledge of such Borrower as of the date hereof, threatened
action or proceeding affecting such Borrower or any Material Subsidiary of such
Borrower before any court, governmental agency or arbitrator, (i) which could reasonably be
expected to have a Material Adverse Effect in respect of such Borrower, except as set forth in such
Borrower’s annual report on Form 10-K for the year ended December 31,2005, filed with
the Securities and Exchange Commission, or (ii) which purports to affect the legality, validity,
binding effect or enforceability of any Credit Document.

     (g) No proceeds of any Revolving Credit Advance will be used for any purpose or
in any manner contrary to the provisions of Section 5.2(j).

     (h) No Borrower is engaged in the business of extending credit for the purpose of purchasing
or carrying margin stock (within the meaning of Regulation U), and no proceeds of any
Revolving Credit Advance will be used to purchase or carry any such margin stock or to
extend credit to others for the purpose of purchasing or carrying any such margin stock.

     (i) No Borrower is an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940,
as amended.

     (j) No Termination Event has occurred or is reasonably expected to
occur with respect to any Plan that could reasonably be expected to have a Material Adverse Effect
in respect of any Borrower. No Credit Party nor any Subsidiary or ERISA Affiliate of
any Credit Party has received any notification that any Multiemployer Plan is in reorganization or
has been terminated, within the meaning of Title IV of ERISA that could reasonably be
expected to have a Material Adverse Effect in respect of any Borrower, and no Credit Party is aware
of any reason to expect that any Multiemployer Plan is to be in reorganization or
to be terminated within the meaning of Title IV of ERISA that would
have a Material Adverse Effect in respect of any Borrower; provided that neither MLP nor
any of its Subsidiaries shall be considered to be a “Borrower”, “Credit Party”, “ERISA Affiliate”
or “Subsidiary” for purposes of this Section 4.1(j).

     (k) Except as set forth in a Borrower’s annual report on Form 10-K for
the year ended December 3 1,2005, filed with the Securities and Exchange Commission, or
in the case of representations by the MLP only, as set forth in any of its filings with the
Securities and Exchange Commission, or as disclosed in writing by any Borrower to the Banks and the
Agent after the date hereof and approved in writing by the Majority Banks, each Borrower and its
Material Subsidiaries are in compliance with all applicable Environmental Laws, except as could not
reasonably be expected to have a Material Adverse Effect in respect of such Borrower. Except as
disclosed in writing by any Borrower to the Banks and the Agent after the date hereof and approved
in writing by the Majority Banks, the aggregate contingent and non-contingent liabilities of each
Borrower and its Material Subsidiaries (other than those reserved for in accordance with GAAP
and excluding liabilities to the extent covered by insurance if the insurer has confirmed
that such insurance covers such liabilities or which such Borrower reasonably expects to recover
from ratepayers) which to such Borrower’s
knowledge are reasonably expected to arise in connection with (i) the requirements of any
Environmental Law or (ii) any obligation or liability to any Person in connection with
any Environmental matters (including any release or threatened release (as such terms
are defined or used in the Comprehensive Environmental Response, Compensation and
Liability Act of 1980) of any Hazardous Waste, Hazardous Substance, other waste, petroleum
or petroleum products into the Environment) could not reasonably be expected to have
a Material Adverse Effect in respect of such Borrower. Each Borrower and its Material Subsidiaries
holds, or has submitted a good faith application for all Environmental Permits (none of
which have been terminated or denied) required for any of its current operations or for
any property owned, leased, or otherwise operated by it; and is, and within the period
of all applicable statutes of limitation has been, in compliance with all of its

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Environmental Permits, except where the failure to comply with the matters set forth in this
sentence, in the aggregate, could not reasonably be expected to have a Material Adverse Effect in
respect of such Borrower.

     (l) No Default or Event of Default has occurred and is continuing.

     (m) As of the date hereof only, after giving effect to the Credit Documents and
each transaction thereunder (including each Revolving Credit Advance and each Letter of Credit),
each Credit Party, individually and together with its Subsidiaries, is Solvent.

     (n) As of the date hereof only, neither the Confidential Information Memorandum
dated April, 2006 relating to the Borrowers and the transactions contemplated hereby nor any of the
other reports, financial statements, certificates or other written information furnished by or on
behalf of any Borrower to the Agent or any Bank on or prior to the date hereof (as
modified or supplemented by other information so furnished on or prior to
the date hereof), taken as a whole, contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not materially misleading, provided that, with
respect to any projected financial information, the Borrowers represent only that such information
was prepared in good faith based upon assumptions believed by the Borrowers to be reasonable at the
time (it being recognized, however, that projections as to future events are not to be viewed as
facts and that the actual results during the period or periods covered by any projections may
materially differ from the projected results). None of the reports, financial statements,
certificates or other written information furnished by or on behalf of any Borrower to the Agent,
any Issuing Bank or any Bank after the date hereof (as modified or
supplemented by other information so furnished after the date hereof), taken as a whole,
contains any material misstatement of fact or omits to state any material fact
necessary to make the statements therein, in the light of the circumstances under which
they were made, not materially misleading.

ARTICLE V

COVENANTS OF THE BORROWERS

     SECTION 5.1. Affirmative Covenants. So long as any Revolving
Credit Advance shall remain unpaid, any Letter of Credit or Reimbursement Obligation shall remain
outstanding, any Letter of Credit Liability shall exist or any Issuing Bank or any Bank
shall have any Commitment hereunder, each Borrower (it being agreed that neither MLP
nor any of its Subsidiaries shall be considered to be a “Borrower”, “ERISA Affiliate”
or “Subsidiary” for purposes of this Section 5.1, except for Sections
5.1(b)(ii), 5.1(b)(iii) and, to the extent it requires the maintenance of the existence of MLP,
5.1(d)) will, unless the Majority Banks shall otherwise consent in writing:

     (a) Compliance with Laws, Etc. Comply, and cause each of its Material Subsidiaries to
comply, with all applicable laws, rules, regulations and orders, including ERISA and all
Environmental Laws, such compliance to include, without limitation, the payment and discharge
before the same become delinquent of all taxes, assessments and
governmental charges or levies imposed upon it or any of its Material Subsidiaries
or upon any of its property or any property of any of its Material Subsidiaries, and
all lawful claims which, if unpaid, would become a Lien upon any property of it or any
of its Material Subsidiaries (except where failure to comply could not reasonably be expected to
have a Material Adverse Effect in respect of such Borrower); provided that no
Borrower nor any Material Subsidiary of a Borrower shall be required to pay any such
tax, assessment, charge, levy or claim which is being contested in good faith and by
proper proceedings and with respect to which reserves in conformity with

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GAAP, if required by GAAP, have been provided on the books
of such Borrower or such Material Subsidiary, as the case may be.

     (b) Reporting Requirements. Furnish to the Agent:

          (i) as soon as possible and in any event within five Business Days after
an Authorized Officer of such Borrower obtains knowledge of the occurrence of any
Default or Event of Default, continuing on the date of such statement, a statement of
an Authorized Financial Officer of such Borrower setting forth the details of such
Default or Event of Default and the actions, if any, which such Borrower has taken and proposes
to take with respect thereto;

          (ii) as soon as available and in any event not later than 60 days
after the end of each of the first three Fiscal Quarters of each Fiscal Year of such Borrower, (1)
the unaudited Consolidated balance sheet of such Borrower and its Consolidated Subsidiaries as of
the end of such Fiscal Quarter and the unaudited Consolidated statements of income and cash flows
of such Borrower and its Consolidated Subsidiaries for the period commencing at the end of the
previous year and ending with the end of such Fiscal Quarter, all in reasonable detail and duly
certified by the chief executive officer or chief financial officer of such Borrower as
fairly presenting in all material respects the Consolidated financial condition of such Borrower
and its Consolidated Subsidiaries as of the end of such Fiscal Quarter and the Consolidated results
of operations of such Borrower and its Consolidated Subsidiaries for such period; provided
that, if any financial statement referred to in this clause (ii) of this Section
5.1(b) is so certified and is readily available on-line through EDGAR as of the date
on which such financial statement is required to be delivered hereunder, such Borrower
shall not be obligated to furnish copies of such financial statement; and (2)
a certificate of an Authorized Financial Officer of such Borrower (a) stating that he has no
knowledge that a Default or Event of Default has occurred and is continuing or, if a
Default or Event of Default has occurred and is continuing, a statement as to the nature thereof
and the action, if any, which such Borrower proposes to take with respect thereto, and (b) showing
in detail the calculation supporting such statement in respect of, if such Borrower is TWC,
NWP or TGPL, Section 5.2(b) and, if such Borrower is TWC, Section
5.2(c), but the certificate contemplated by this clause (2) shall not be required for any Fiscal
Quarter ending prior to the Effective Date;

          (iii) as soon as available and in any event not later than 105 days
after the end of each Fiscal Year of such Borrower ending after the Effective Date, (1) a copy of
the annual audited report for such Fiscal Year for such Borrower and its Consolidated Subsidiaries,
including the Consolidated balance sheet of such Borrower and its Consolidated Subsidiaries as of
the end of such Fiscal Year and the Consolidated statements of income and cash flows of such
Borrower and its Consolidated Subsidiaries for such Fiscal Year, in each case prepared in
accordance with GAAP and reported on by Ernst & Young, LLP or other
independent certified public accountants of recognized national standing;
provided that if any audited report referred to in this clause (iii) of Section 5.1(b)
is so certified and is readily available on-line through EDGAR as of the date on
which such financial statement is required to be delivered hereunder, such Borrower shall not be
obligated to furnish copies of such audited report; and (2) a certificate of an Authorized
Financial Officer of such Borrower (a) stating that he has no knowledge that a Default
or Event of Default has occurred and is
continuing, or if a Default or Event of Default has occurred and is continuing, a
statement as to the nature thereof, and the action, if any, which such Borrower proposes to take
with respect thereto and (b) showing in detail the calculations supporting such
statement in respect of, if such Borrower is TWC, NWP or TGPL, Section
5.2(b) and, if such Borrower is TWC, Section 5.2(c);

          (iv) such other information (other than projections) respecting the business
or properties, or the condition or operations, financial or otherwise, of
such Borrower or any of its Material Subsidiaries as any Bank through the Agent may
from time to time reasonably request;

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          (v) promptly after the sending or filing thereof, copies of all proxy
material, reports and other information which TWC sends to its security
holders generally, and copies of all final reports and final registration statements which such
Borrower or any Subsidiary of such Borrower files with the Securities and Exchange
Commission or any national securities exchange; provided that, if such proxy
materials and reports, registration statements and other information are readily available on-line
through EDGAR, such Borrower or Subsidiary shall not be obligated to
furnish copies thereof;

          (vi) as soon as possible and in any event within 30 Business Days
after such Borrower or any Subsidiary or ERISA Affiliate of such Borrower knows or has
reason to know that any Termination Event with respect to any Plan has occurred or is
reasonably expected to occur that could reasonably be expected to have a Material Adverse Effect in
respect of such Borrower, a statement of an Authorized Financial Officer of such Borrower
describing such Termination Event and the action, if any, which such Borrower proposes to take with
respect thereto;

          (vii) promptly and in any event within 25 Business Days after receipt thereof by
such Borrower or any ERISA Affiliate of such Borrower, copies of each notice received by such
Borrower or any ERISA Affiliate of such Borrower from the PBGC stating its intention to terminate
any Plan or to have a trustee appointed to administer any Plan;

          (viii) promptly and in any event within 25 Business Days after receipt thereof
by such Borrower or any ERISA Affiliate of such Borrower from the sponsor of a Multiemployer Plan,
a copy of each notice received by such Borrower or any ERISA Affiliate of such Borrower concerning
(A) the imposition of a Withdrawal Liability by a Multiemployer Plan, (B) the
determination that a Multiemployer Plan is, or is expected to be, in reorganization
within the meaning of Title IV of ERISA, (C) the termination of a Multiemployer Plan
within the meaning of Title IV of ERISA, or (D) the amount of liability
incurred, or expected to be incurred, by such Borrower or any ERISA Affiliate of such
Borrower in connection with any event described in clause (A), (B) or (C) above
that, in the aggregate, could reasonably be expected to have a Material Adverse Effect in respect
of such Borrower; and

          (ix) promptly after any change in any rating referred to in Section 1.5 or any
change in, or issuance, withdrawal or termination of, the rating of any senior unsecured long-term
debt of such Borrower by S&P or Moody’s, notice thereof.

     (c) Maintenance of Insurance. Maintain, and cause each of its Material Subsidiaries to
maintain, insurance with responsible and reputable insurance companies or associations in such
amounts and covering such risks as is usually carried by companies engaged in similar businesses
and owning similar properties in the same general areas in which such Borrower or such
Material Subsidiaries operate; provided that such Borrower or any such Material
Subsidiary may self-insure to the extent and in the manner normal for companies of like
size, type and financial condition, provided further that any insurance required by this
Section 5.1(c) may be maintained by TWC on behalf of the other Borrowers and their
Material Subsidiaries.

     (d) Preservation
of Corporate Existence, Etc. Preserve and maintain, and
cause each of its Material Subsidiaries to preserve and maintain, its existence as a corporation or
other Business Entity, rights and franchises in the jurisdiction of its incorporation or formation,
and qualify and remain qualified, and cause each Material Subsidiary to qualify and remain
qualified, as a foreign entity in each jurisdiction in which qualification is necessary or
desirable in view of its business and operations or the ownership of its properties, except
(i) in the case of any Material Subsidiary of such Borrower (other than a Credit
Party), where the failure of such Material Subsidiary to so maintain its existence could not
reasonably be expected to have a Material Adverse Effect in respect of such Borrower, (ii) where
the failure to preserve and maintain such rights and franchises (other than existence) or to so
qualify and

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remain qualified could not reasonably be expected to have a Material Adverse Effect in respect of
such Borrower, and (iii) such Borrower and its Material Subsidiaries may consummate any merger
or consolidation permitted pursuant to Section 5.2(d) and other
dispositions permitted hereunder.

     (e) Further Assurances. At any time prior to the Pipeline Holdco Release Date, and
from time to time, at its expense, execute and deliver to, and cause Pipeline Holdco
and each other relevant Credit Party to execute and deliver to, the Agent such further
instruments and documents, and take such further action, as the Majority Banks may from time to
time reasonably request, for the purposes of implementing or effectuating the provisions of this
Agreement and the other Credit Documents.

     (f) Inspection Rights. Permit, and cause each of its Material
Subsidiaries to permit, any representatives designated by the Agent or the Majority Banks, upon
reasonable prior notice, at the Banks’ expense so long as no Event of Default exists
and at TWC’s expense during the continuance of an Event of Default, to visit and inspect the
properties of such Borrower or any Material Subsidiary of such Borrower with an
Authorized Officer of a Borrower present, to examine and make extracts from its books and
records, and to discuss its affairs, finances and condition with its officers, all at such
reasonable times and as often as reasonably requested but no more frequently than semi-annually so
long as no Event of Default exists.

     (g) Payment of Obligations. Pay, and cause each of its Material
Subsidiaries to pay, before the same shall become delinquent or in default, all obligations that,
if not paid, could reasonably be expected to have a Material Adverse Effect in respect of such
Borrower, except where (a) the validity or amount thereof is being contested in good faith by
appropriate proceedings, (b) such Borrower or such Material Subsidiary has set aside
on its books adequate reserves with respect thereto in accordance with GAAP
and (c) the failure to make payment pending such contest could not reasonably be expected to
have a Material Adverse Effect in respect of such Borrower.

     (h) Maintenance of Properties. Keep and maintain, and cause each of its Material
Subsidiaries to keep and maintain, all property material to the conduct of the business of such
Borrower and its Subsidiaries, taken as a whole, in good working order and condition, ordinary wear
and tear excepted, in the reasonable business judgment of such Borrower.

     (i) Books and Records. Keep, and cause each of its Material Subsidiaries
to keep, books of record and account in accordance with GAAP.

     (j) Additional Matters. Until the Pipeline Holdco Release Date, furnish
to the Agent:

     (1) as soon as available and in any event not later than 60 days
after the end of each of the first three Fiscal Quarters of each Fiscal Year of
Pipeline Holdco, the unaudited Consolidated balance sheet of Pipeline Holdco and
its Consolidated Subsidiaries as of the end of such Fiscal Quarter and the
unaudited Consolidated statements of income and cash flows of
Pipeline Holdco and its Consolidated Subsidiaries for the period commencing at
the end of the previous year and ending with the end of such Fiscal Quarter, all in
reasonable detail and duly certified (subject to year-end audit adjustments and
the lack of footnotes) by the senior vice president or treasurer of Pipeline Holdco
as having been prepared in accordance with GAAP; and

     (2) as soon as available and in any event not later than 150 days
after the end of each Fiscal Year of Pipeline Holdco ending after January 1,
2005, the audited Consolidated balance sheet of Pipeline Holdco and its
Consolidated Subsidiaries as of the end of such Fiscal Year and the audited
Consolidated statements of income and cash

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flows of Pipeline Holdco and its Consolidated Subsidiaries for such Fiscal
Year, in each case prepared in accordance with GAAP.

     SECTION 5.2. Negative Covenants. So long as any Revolving Credit Advance
shall remain unpaid, any Letter of Credit or Reimbursement Obligation shall remain outstanding, any
Letter of Credit Liability shall exist or any Issuing Bank or
any Bank shall have any Commitment hereunder, no Borrower (it being agreed that
neither MLP nor any of its Subsidiaries shall be considered to be a “Borrower”, “ERISA
Affiliate” or “Subsidiary” for purposes of this Section 5.2, except (i) for Section 5.2(j) and (ii)
specific references to MLP and its Subsidiaries in Sections 5.2(b) and 5.2(p) shall
continue to mean MLP and such Subsidiaries)) will, without the written consent of the Majority
Banks (it being understood that each of the permitted exceptions to each of the covenants in
this Section 5.2 is in addition to, and not overlapping with, any other of such
permitted exceptions to such covenant, except to the extent expressly provided therein):

     (a) Liens, Etc. Create, assume, incur or suffer to exist,
or permit any of its Material Subsidiaries to create, assume, incur or suffer to exist,
any Lien on or in respect of any of its property, whether now owned or
hereafter acquired, in each case to secure or provide for the payment of any
Debt or Specified Obligation (other than obligations or liabilities that are (1) incurred, and are
owed to trading counterparties, in the ordinary course of the trading business of the Borrowers or
any of their Subsidiaries (other than Non-Recourse Subsidiaries and International Subsidiaries),
and (2) secured only by cash, short term investments or a Letter of Credit);
provided that notwithstanding the foregoing, the Borrowers or any of their
Material Subsidiaries may create, incur, assume or suffer to exist (i) in the case of a
Pipeline Entity (other than Pipeline Holdco), General Permitted Liens securing only obligations of
a Pipeline Entity, (ii) in the case of Pipeline Holdco, Limited Permitted Liens securing only
obligations of Pipeline Holdco, and (iii) in the case of any Non-Pipeline Entity,
General Permitted Liens securing obligations of any Person;
provided further that
this Section 5.2(a) shall not prohibit Liens on Equity Interests in, or assets of, Gulfstream or Liens on the general
partnership interest in MLP or limited partnership units
issued by MLP if such Liens secure only Debt of MLP, the general partner of MLP or the direct owner
of such general partner.

     (b) Debt.

          (i) In the case of TWC, permit the ratio of (A) the aggregate amount of
Consolidated Debt (without duplication) of TWC and its Consolidated Subsidiaries (excluding Debt of
MLP and its Subsidiaries that is not incurred under this Agreement) to (B) the sum of the
Consolidated Net Worth of TWC plus the aggregate amount of Consolidated Debt (without duplication)
of TWC and its Consolidated Subsidiaries (excluding Debt of MLP and its Subsidiaries that is not
incurred under this Agreement) to exceed, on the last day of any Fiscal Quarter of TWC
ending after December 31, 2005, 0.65 to 1.00;

          (ii) In the case of any Borrower (other than TWC), permit the ratio of (A) the
aggregate amount of Consolidated Debt (without duplication) of such Borrower and its Consolidated
Subsidiaries, to (B) the sum of the Consolidated Net Worth of such Borrower
plus the aggregate amount of Consolidated Debt (without duplication) of such Borrower and its
Consolidated Subsidiaries to exceed, on the last day of any Fiscal Quarter of such
Borrower ending after December 31, 2005, 0.55 to 1.00;

          (iii) In the case of TWC, create, incur or assume, or permit any of its
Subsidiaries to create, incur or assume, any Debt at any time, if after giving effect to such Debt,
the ratio of (A) the aggregate amount of Consolidated Debt (without duplication) of TWC and its
Consolidated Subsidiaries (excluding Debt of MLP and its Subsidiaries that is not incurred under
this Agreement) to (B) the sum of the Consolidated Net Worth of TWC as of the end
of the Fiscal Quarter of TWC most recently ended prior to such time for which the
appropriate financial information is available (adjusted, at TWC’s option,

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to give effect, in accordance with GAAP, to all material asset acquisitions and dispositions
by TWC and its Consolidated Subsidiaries (other than MLP and its Subsidiaries) since the end of
such Fiscal Quarter) plus the aggregate amount of Consolidated Debt (without duplication) of TWC
and its Consolidated Subsidiaries (excluding Debt of MLP and its Subsidiaries that is not incurred
under this Agreement) would exceed at such time 0.65 to 1.00; and

          (iv) In the case of any Borrower (other than TWC), create, incur or assume, or permit any of
its Subsidiaries to create, incur or assume, any Debt at any time, if after giving
effect to such Debt, the ratio of (A) the aggregate amount of Consolidated Debt (without
duplication) of such Borrower and its Consolidated Subsidiaries to (B) the sum of the
Consolidated Net Worth of such Borrower as of the end of the Fiscal Quarter of such Borrower most
recently ended prior to such time for which the appropriate financial information is available
(adjusted, at such Borrower’s option, to give effect, in accordance with GAAP, to all material
asset acquisitions and dispositions by such Borrower and its Consolidated Subsidiaries since the
end of such Fiscal Quarter) plus the aggregate amount of Consolidated Debt (without duplication) of
such Borrower and its Consolidated Subsidiaries would exceed at such time 0.55 to 1.00.

          (v) In the case of TWC, permit any Subsidiary (other than TGPL, NWP and their respective
Subsidiaries) to create, incur, assume or permit to exist any Debt other than:

	 	(A)	 	Debt that is existing on the
Effective Date and listed on Schedule V and refinancings
thereof;
	 
	 	(B)	 	Non-Recourse Debt;
	 
	 	(C)	 	Debt owed to TWC or any
Subsidiary of TWC;
	 
	 	(D)	 	Debt secured by General Permitted Liens
permitted by paragraphs (a) through (q) of
Schedule IX-2 (other than, with respect to paragraph
(j) of Schedule IX-2, Debt that is Refinancing Debt
that relates (whether through one or more refundings, extensions,
refinancings or other replacements) to any amount
originally secured pursuant to paragraph (r) of Schedule IX-2); and
	 
	 	(E)	 	other Debt in an aggregate principal amount
at any one time outstanding not to exceed $250,000,000.

     (c) EBITDA to Interest Expense Ratio. In the case of TWC and its
Consolidated Subsidiaries, permit, for any Measurement Period, the ratio of (i) EBITDA to (ii)
Interest Expense to be less than (A) 2.50 to 1.00, for any Measurement Period ending on or
before December 31, 2007 or (B) 3.00 to 1.00 for any Measurement Period
ending after December 31, 2007. For avoidance of doubt, it is agreed that such ratio
will be computed for an entire Measurement Period and not for each day in such Measurement Period.

     (d) Merger and Sale of Assets. Merge or consolidate with or into any other
Person, or sell, lease or otherwise transfer all or substantially all of
its assets, or permit Pipeline Holdco to merge or consolidate with or into
any other Person, or sell, lease or
otherwise transfer all or substantially all of its assets, except that this Section
5.2(d) shall not prohibit any merger or consolidation by any Borrower or by Pipeline
Holdco with any Person that is not a Credit Party, if such Borrower (or Pipeline Holdco, as the
case may be, in a merger or consolidation not involving a Borrower) is the surviving
entity.

     (e) Agreements to Restrict Certain Transfers. Enter into or
suffer to exist, or permit any of its Subsidiaries to enter into or suffer
to exist, any consensual encumbrance or consensual restriction on its ability or
the ability of any of its Subsidiaries (i) to pay, directly or indirectly, dividends or make
any

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other distributions in respect of its Equity Interests or pay any Debt or
other obligation owed, in any case, to a Borrower or to any Subsidiary of any Borrower or
(ii) to make loans or advances to a Borrower or any Subsidiary thereof, except (1) encumbrances and
restrictions on any Subsidiary that is not a Material Subsidiary, (2) those encumbrances and
restrictions existing on May 3, 2004, and other customary encumbrances and restrictions
existing after May 3, 2004 that are not more restrictive in any material respect, taken as a
whole, than the encumbrances and restrictions existing on May 3, 2004
(provided that the application of any such restrictions and encumbrances to additional
Subsidiaries not subject thereto on May 3, 2004 shall not be deemed to make such
restrictions and encumbrances more restrictive), (3) encumbrances or restrictions on any
Non-Recourse Subsidiary or International Subsidiary, including those arising in connection with
Non-Recourse Debt or International Debt, (4) encumbrances and restrictions on
any Additional MLP or any of its Subsidiaries, (5) encumbrances
or restrictions existing under or by reason of (A) applicable law (including rules,
regulations and agreements with regulatory authorities), (B) any agreement or
instrument in effect at the time a Person is acquired by a Borrower or any Subsidiary
of a Borrower, so long as such agreement was not entered into in contemplation of such
acquisition, (C) any agreement for the sale or other disposition of a Subsidiary of a
Borrower that restricts distributions by that Subsidiary pending its sale or other
disposition or (D) provisions with respect to distributions of assets or
property in joint venture agreements, asset sale agreements, stock sale agreements and other
similar agreements; provided that such encumbrances or restrictions apply only to the
assets or property subject to such joint venture, asset sale, stock sale or similar
agreement or to the assets or property being sold, as the case may be, and (6)
encumbrances or restrictions existing under or by reason of Limited Permitted Liens or
General Permitted Liens securing debt otherwise permitted to be incurred under this Section
5.2 that limit the right of the debtor to dispose of the assets subject
to such Limited Permitted Liens or General Permitted Liens.

     (f) Maintenance of Ownership of Certain Subsidiaries. (i) Sell, issue,
transfer or otherwise dispose of, or create, assume, incur or
suffer to exist any Lien (other than Limited Permitted Liens) on or in respect of, or
permit any of its Subsidiaries to sell, issue, transfer or otherwise dispose of or
create, assume, incur or suffer to exist any Lien (other than
Limited Permitted Liens) on or in respect of, any Equity Interest in or Hybrid Security
issued by, or any direct or indirect interest in any Equity Interest in or Hybrid
Security issued by, Pipeline
Holdco, NWP or TGPL, or (ii) sell, transfer or otherwise dispose of,
or permit any of its Subsidiaries to sell, transfer or otherwise dispose of, all or
substantially all of RMT or all or substantially all of the assets of RMT;
provided that clause (ii) of this Section 5.2(f) shall not
prohibit the sale, transfer or other disposition of the Equity Interests in RMT to TWC
or any Wholly- Owned Subsidiary of TWC if, but only if, (x) there shall not
exist or result a Default or Event of Default and (y) in the case of each sale, transfer or other
disposition referred to in this proviso, such sale, transfer or other disposition could not
reasonably be expected to impair materially the ability of any Credit Party to perform its
obligations hereunder or under any other Credit Document and each Credit Party shall continue to
exist.

     (g) Compliance with ERISA. (i) Terminate, or permit any ERISA Affiliate of
such Borrower to terminate, any Plan so as to result in any material liability of such
Borrower, any Material Subsidiary of such Borrower or any such ERISA Affiliate to the PBGC, if such
material liability of such ERISA Affiliate could reasonably be expected to have a Material Adverse
Effect in respect of such Borrower, or (ii) permit to occur any Termination
Event with respect to a Plan that would have a Material Adverse Effect in respect of such Borrower.

     (h) Transactions with Related Parties. Make any sale to, make any purchase from,
extend credit to, make payment for services rendered by, or enter into any other
transaction with, or permit any Material Subsidiary of such Borrower to make any sale
to, make any purchase from, extend credit to, make payment for services rendered by, or
enter into any other transaction with, any Related Party of such Borrower or of such Material
Subsidiary, unless as a whole such sales, purchases, extensions of

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credit, rendition of services and other transactions are (at the time such sale, purchase,
extension of credit, rendition of services or other transaction is entered into) on terms and
conditions reasonably fair in all material respects to such Borrower or such Material Subsidiary in
the good faith judgment of such Borrower; provided that the following items will not be
deemed to be subject to the provisions of this Section 5.2(h): (i) declaring or
paying any dividend or distribution or purchasing, redeeming, retiring,
defeasing  or otherwise acquiring for value any Equity Interests, in each case not otherwise
prohibited hereunder, (ii) any agreement, instrument or arrangement as in effect on December 31,
2005 or any amendment thereto or any transaction contemplated thereby (including
pursuant to any amendment thereto) or in any replacement agreement thereto so long as
any such amendment or replacement agreement is not more disadvantageous to the Banks in
any material respect than the original agreement as in effect on December 31, 2005 as
determined in good faith by an Authorized Financial Officer of TWC, (iii) (A)
corporate sharing agreements among a Borrower and its Subsidiaries with respect to tax sharing and
general overhead and other administrative matters and (B) any other intercompany
arrangements disclosed or described in TWC’s report on Form 10-K for the year ended December 31,
2005 (including the exhibits attached to each), all as in effect on December 31,2005, and any
amendment or replacement of any of the foregoing so long as such amendment or replacement agreement
is not less advantageous to any Borrower party thereto in any material respect than the agreement
so amended or replaced, as such agreement was in effect on December 31, 2005, or (iv)
any sale to, purchase from, extension of credit to, payment of services rendered by or
any other transaction (I) between the MLP or any of its Subsidiaries and one or
more Related Parties of MLP (other than a Credit Party), if such sale, purchase,
extension of credit, payment or transaction is made or completed in compliance with the
terms and provisions of the MLP Agreement, or (II) between the MLP or any of its
Subsidiaries and one or more Credit Parties, if (a) such sale, purchase, extension of
credit, payment or transaction is made or completed in compliance with the terms and
provisions of the MLP Agreement, and (b) such sale, purchase, extension of credit, payment or
transaction is on terms and conditions reasonably fair in all material respects
to the other Credit Parties party thereto in the good faith judgment of such other Credit Parties.

     (i) Asset
Dispositions. Make or permit to occur, or permit
any of its Subsidiaries to make or permit to occur, any sale, transfer or other disposition of any
asset, except (i) sales of inventory in the ordinary course of business, (ii) sales, transfers or
other dispositions in the ordinary course of business of any asset that is worn out or
obsolete, (iii) any sale of assets if the proceeds of such sale are reinvested within one
year in a Permitted Business or, if no Event of Default exists, used to pay senior debt
of TWC and its Subsidiaries, provided that proceeds from asset sales by a Pipeline Entity
may only be reinvested in the business of the Pipeline Group to which such Pipeline Entity belongs
or used to pay senior debt (other than debt of Gulfstream or of any Subsidiary of Gulfstream) of
the Pipeline Entities in such Pipeline Group, (iv) sales of assets by a Pipeline Entity to another
Pipeline Entity, (v) sales of assets by a Non-Pipeline Entity to another Non-Pipeline Entity, (vi)
individual asset sales if the fair market value of such assets is $15,000,000 or less,
but any series of related sales of assets will be aggregated and treated as a single sale for
purposes of this clause (vi), and (vii) sales of assets having a fair market value in
the aggregate of less than $100,000,000 per year; provided, that this Section
5.2(i) shall not apply to any sale, transfer or other disposition (A) of assets to
MLP or any of its Subsidiaries, (B) of assets by any Non-Recourse
Subsidiary or International Subsidiary, (C) of assets that is part of
a Sale and Leaseback Transaction permitted by Section 5.2(q) or (D) of any Equity
Interest in or assets of Gulfstream or any of its Subsidiaries.

     (j) Use of Proceeds. Use any proceeds of any Revolving Credit Advance for
any purpose other than general corporate, partnership and limited liability company purposes, as
applicable, relating to the business of a Borrower and its Subsidiaries (including working capital,
acquisitions and capital expenditures), or use any such proceeds in any manner which
violates or results in a violation of law; provided that no proceeds of
any Revolving Credit Advance will be used in any manner which

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contravenes law, and no proceeds of any Revolving Credit Advance will be used to purchase or
carry any margin stock (within the meaning of Regulation U).

     (k) Pipeline Expenditures. In the case of either Pipeline Borrower, make,
or permit any Subsidiary of such Pipeline Borrower to make, any expenditure except (i) expenditures
within the principal business lines of such Pipeline Borrower on the Effective Date and (ii)
expenditures in other businesses reasonably related to such principal business lines so
long as the aggregate expenditures in such other businesses pursuant to this clause (ii) are
not a material portion of the aggregate expenditures by such Pipeline Borrower and its
Subsidiaries pursuant to clauses (i) and (ii) of this sentence.

     (l) Restricted Payments. (i) Declare or pay any dividends (other than in
common stock of such Borrower), purchase, redeem, retire, defease or otherwise acquire for value
any of its Equity Interests now or hereafter outstanding, return any capital to its
stockholders, partners or members (or the equivalent Persons thereof) as such, make any
other distribution of assets, Equity Interests, obligations or securities to its stockholders,
partners or members (or the equivalent Persons thereof) as such, or permit Pipeline
Holdco to do any of the foregoing, or (ii) permit any of its Subsidiaries to purchase, redeem,
retire, defease or otherwise acquire for value any Equity Interests in any Borrower or Pipeline
Holdco, unless no Event of Default shall have occurred and be continuing at the time of any action
described in clauses (i) and (ii) above and no Event of Default would result therefrom;
provided, that, notwithstanding the foregoing, at any time, whether or not an Event of
Default exists, TGPL and NWP shall be permitted to pay dividends to Pipeline Holdco
to permit Pipeline Holdco to (A) pay corporate overhead expenses incurred in the ordinary course
of business not to exceed $2,000,000 in any fiscal year, (B) (and
Pipeline Holdco shall be permitted to) pay dividends to TWC to pay the corporate overhead and
administration expenses allocated (in a manner consistent with past practices) to Pipeline Holdco,
TGPL, NWP and their Subsidiaries, and (C) pay any taxes which are due and payable by
Pipeline Holdco, TGPL and NWP as part of a consolidated group.

     (m) Pipeline Holdco Debt. Permit, prior to the Pipeline Holdco Release
Date, Pipeline Holdco to create, incur, assume or suffer to exist any Debt, except (A)
Debt in an aggregate amount not to exceed $75,000,000 at any time outstanding, (B) Debt owed to TWC
or any of its Subsidiaries if all such Debt is evidenced by a promissory note that is delivered to
the Agent and in which an Acceptable Security Interest exists and (C) the Pipeline Holdco Guaranty.

     (n) Non-Recourse Debt. Create, incur or assume, or permit any of its
Subsidiaries to create, incur or assume, any Non-Recourse Debt, unless, at the time of
such creation, incurrence or assumption and immediately after giving effect thereto,
both (i) the aggregate principal amount of all Non-Recourse Debt of all Subsidiaries of such
Borrower does not exceed 10% of the total Consolidated assets of such Borrower and its Consolidated
Subsidiaries; and (ii) the aggregate principal amount of all Non-Recourse Debt of all Subsidiaries
of such Borrower that is secured by assets owned by such Borrower or its Subsidiaries
or by any of the other Borrowers or their respective Subsidiaries (without
duplication), on December 31, 2005 or by Equity Interests in any Person that owns
any such asset or that is otherwise supported by such assets does not exceed
7.5% of the total Consolidated assets of such Borrower and its Consolidated
Subsidiaries, as shown on the respective balance sheets of the Borrowers delivered pursuant to
Section 4.1(e).

     (o) Existing Assets. (i) Create, incur or assume, or permit
any of its Subsidiaries to create, incur or assume, any Non-Recourse Debt secured by
any of the Existing Assets, (ii) grant any Lien on any of the Existing Assets to secure
any Non-Recourse Debt, or (iii) transfer any of the Existing Assets to any Non-Recourse
Subsidiary (the matters referred to in clauses (i), (ii) and (iii) of this sentence
being herein referred to as “Existing Asset Transactions”), provided that this
Section 5.2(0) shall not prohibit Existing Asset Transactions if the aggregate fair market
value (determined as of the Effective Date) of all Existing

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Assets that are subject to Existing Asset Transactions does not exceed
$250,000,000 in the aggregate at any time. For the avoidance of doubt, Existing Assets
shall cease to be considered subject to an Existing Asset Transaction if (x) with
respect to clauses (i) and (ii) above, such Existing Assets cease to secure
Non-Recourse Debt and (y) with respect to clause (iii) above, such Existing Assets have
been transferred back to TWC or a Subsidiary of TWC (other than a Non-Recourse Subsidiary).
Notwithstanding the foregoing, if Existing Assets that are subject to Existing Asset Transactions
are transferred in connection with a foreclosure or in lieu of foreclosure upon Non-Recourse Debt,
then they will be deemed to continue being subject to Existing Asset Transactions.

     (p) MLP Ownership of Credit Parties. In the case of TWC, permit MLP or any Subsidiary
of MLP to own any direct or indirect interest in any Equity Interest in, or
Hybrid Security issued by, any Credit Party (other than MLP).

     (q) Sale and Leaseback Transactions. Enter into, or permit any of its
Subsidiaries to enter into, any Sale and Leaseback Transaction, if after giving effect thereto the
sum of (i) the aggregate amount of all Attributable Obligations of such Borrower and its
Subsidiaries plus (ii) the aggregate amount of all obligations of such Borrower and its
Subsidiaries secured by any Lien referred to in paragraph (r) of Schedule IX-2 would
exceed 3.5% of the Consolidated Net Tangible Assets (as defined in such paragraph (r))
of such Borrower.

ARTICLE VI

EVENTS OF DEFAULT

     SECTION 6.1. Events of Default. If any of the following events (“Events of
Default”) shall occur and be continuing (it being agreed that neither MLP nor any of its
Subsidiaries shall be considered to be a “Borrower”, “ERISA Affiliate” or “Subsidiary”
for purposes of this Section 6.1, except for Sections 6.1(a) (but only to
the extent that the payments referred to in such Section 6.1(a) are not made by TWC), 6.1(b)
and 6.1(c)):

     (a) Any Borrower (i) shall fail to pay any Reimbursement Obligation owed by it
when the same becomes due and payable, (ii) shall fail to pay any principal of any Revolving Credit
Advance owed by it or any Note executed by it when the same becomes due and payable, (iii) shall
fail to pay any interest owed by it on any Reimbursement Obligation,
Revolving Credit Advance or Note within five days after the same becomes due and payable or (iv)
shall fail to pay any fee or other amount presented in writing to be paid
by it hereunder or under any Credit Document to which it is a party within ten days
after the same becomes due and payable; or

     (b) Any certification, representation or warranty (other than any Added L/C Representation)
made by any Credit Party herein or in any other Credit Document or by any Credit Party (or any
Authorized Officer of any Credit Party) in writing under or in connection with this
Agreement or any other Credit Document or any instrument executed in
connection herewith (including representations and warranties deemed made pursuant to Section 3.2)
shall prove to have been incorrect in any material respect when made or deemed made; or

     (c) Any Credit Party shall fail to perform or observe (i) any term,
covenant or agreement contained in this Agreement (other than a term, covenant or
agreement contained in Section 5.2), any Note or any other Credit Document on
its part to be performed or observed and such failure shall continue for 30
days after the earlier of the date notice thereof shall have been given to TWC by the Agent
or any Bank or the date an Authorized Officer of such Credit Party shall have
knowledge of such failure or (ii) any term, covenant or agreement contained in Section 5.2;
or

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     (d) Any Borrower or any Subsidiary of any Borrower (other than a
Non-Recourse Subsidiary or an International Subsidiary) shall fail to pay any principal
of or premium or interest on any Debt which is outstanding in a principal
amount of at least $100,000,000 in the aggregate (excluding Debt incurred pursuant to any Revolving
Credit Advance) of such Borrower or any Subsidiary of such Borrower (as the case may
be) (other than a Non-Recourse Subsidiary or an International Subsidiary), when the
same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure shall continue after the applicable grace
period, if any, specified in the agreement or instrument relating to such Debt; or any
other event shall occur or condition shall exist under any agreement or
instrument relating to any such Debt and shall continue after the applicable grace period,
if any, specified in such agreement or instrument, if the effect of such event or
condition is to accelerate the maturity of such Debt; or any such Debt shall be declared to
be due and payable, or required to be prepaid (other than (i) by a regularly scheduled required
prepayment, (ii) as required in connection with any permitted sale of assets, (iii)
as required in connection with any casualty or condemnation or (iv) as
required pursuant to an illegality event of the type set forth in Section 2.16), prior to the
stated maturity thereof; provided, however, that the provisions of this Section
6.1(d) shall not apply to any Non-Recourse Debt or International Debt or
any Non-Recourse Subsidiary or International Subsidiary; or

     (e) Any Borrower or any Material Subsidiary of any Borrower shall generally not
pay its debts as such debts become due, or shall admit in writing its inability to pay
its debts generally, or shall make a general assignment for the benefit of creditors; or
any proceeding shall be instituted by or against any Borrower or any Material
Subsidiary of any Borrower seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or
composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for relief
or the appointment of a receiver, trustee, or other similar official for it or for any
substantial part of its property and, in the case of any such proceeding instituted against it (but
not instituted by it), shall remain undismissed or unstayed for a period of 60 days; or
any Borrower or any Material Subsidiary of any Borrower shall take any action to
authorize any of the actions set forth above in this subsection (e) (for the avoidance of doubt,
Non-Recourse Subsidiaries and International Subsidiaries are not subject to this clause
(e)); or

     (f) One or more judgments or orders for the payment of money in excess
of $100,000,000 in the aggregate (to the extent not paid or to the extent not covered by insurance
or indemnities that TWC, in its reasonable good faith judgment, believes will be paid
when due by the parties providing such indemnities or insurance) shall be rendered against any
Borrower or any Material Subsidiary of any Borrower and remain unsatisfied and either
(i) enforcement proceedings shall have been commenced by any creditor upon such judgment or
order or (ii) there shall be any period of 30 consecutive days during which a
stay of enforcement of such judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect (for the avoidance of doubt, Non-Recourse Subsidiaries and
International Subsidiaries are not subject to this clause (f));or

     (g) Any Termination Event with respect to a Plan shall have occurred and, 30 days after notice
thereof shall have been given to any Borrower by the Agent, (i) such Termination Event shall still
exist and (ii) the sum (determined as of the date of occurrence of such Termination
Event) of the Insufficiency of such Plan and the Insufficiency of any and all other Plans with
respect to which a Termination Event shall have occurred and then exist (or in the case
of a Plan with respect to which a Termination Event described in clause (ii) of the definition
herein of Termination Event shall have occurred and then exist, the liability related thereto) is
equal to or greater than $125,000,000; or

     (h) Any Credit Party or any Subsidiary or ERISA Affiliate of any
Credit Party shall have been notified by the sponsor of a Multiemployer Plan that it has incurred
Withdrawal Liability to such

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Multiemployer Plan in an amount which, when aggregated with all other amounts required to be
paid to Multiemployer Plans in connection with Withdrawal Liabilities (determined as of the date of
such notification), exceeds $125,000,000 in the aggregate; or

     (i) Any Credit Party or any Subsidiary or ERISA Affiliate of any
Credit Party shall have been notified by the sponsor of a Multiemployer Plan that such
Multiemployer Plan is in reorganization or is being terminated, within the meaning of Title
IV of ERISA, if as a result of such reorganization or termination the
aggregate annual contributions of the Credit Parties and their respective ERISA Affiliates to all
Multiemployer Plans which are then in reorganization or being terminated have been
or will be increased over the amounts contributed to such Multiemployer Plans for the
respective plan years which include the Effective Date by an amount exceeding
$125,000,000; or

     (j) Prior to the Pipeline Holdco Release Date, the Pipeline Holdco Guaranty
for any reason is not a legal, valid, binding and enforceable obligation of Pipeline Holdco or
any Credit Party shall so state in writing; or

     (k) The TWC Guaranty for any reason is not a legal, valid, binding and enforceable
obligation of TWC (except to the extent it is terminated in accordance with its terms or
released pursuant to Section 2.4) or any Credit Party shall so state in writing;
or

     (l) A Change of Control Event shall occur;

then, and in any such event, the Agent while such event exists (i) shall at the request, or may
with the consent, of the Majority Banks, by notice to the Borrowers, declare the Commitments of
each Bank and of each Issuing Bank and the obligations of each Issuing Bank to issue any Letter of
Credit and each Bank to make Revolving Credit Advances to be terminated, whereupon each Commitment
and each such obligation shall forthwith terminate, and (ii) shall at the request,
or may with the consent, of the Majority Banks, by notice to the Borrower as to which
an Event of Default exists, declare the principal of the Reimbursement Obligations and Revolving
Credit Advances owed by such Borrower, all interest thereon and all other amounts payable by such
Borrower under this Agreement and any other Credit Document to be forthwith due and payable,
whereupon all such amounts shall become and be forthwith due and payable, without requirement of
any presentment, demand, protest, notice of intent to accelerate, further notice of acceleration or
other further notice of any kind (other than the notice expressly provided for above), all of which
are hereby expressly waived by the Borrowers; provided, however, that in the event
of any Event of Default described in Section 6.1(e), (A) the Commitments of each Bank and of each
Issuing Bank and the obligations of each Issuing Bank to issue a Letter of Credit and each Bank to
make Revolving Credit Advances shall automatically be terminated and (B) the
principal of the Reimbursement Obligations and Revolving Credit Advances, all such interest and all
such other amounts shall automatically become and be due and payable, without presentment, demand,
protest, notice of intent to accelerate, notice of acceleration or any other notice of
any kind, all of which are hereby expressly waived by the Borrowers. For purposes of this Section
6.1, any Reimbursement Obligation or Revolving Credit Advances owed to an SPC shall be
deemed to be owed to its Designating Bank.

     SECTION 6.2. LC Cash Collateral Accounts. Upon the occurrence and during the
continuance of any Event of Default that exists as to any Borrower (if the Agent has declared all
amounts owed by such Borrower hereunder to be due and payable), such Borrower agrees that it shall
forthwith, without any demand or the taking of any other action by any Issuing Bank, the Agent, or
any of the Banks, provide cover for the outstanding Letter of Credit Liabilities in respect of
Letters of Credit issued at the request of such Borrower by paying to the Agent immediately
available funds in the amount equal to the then aggregate Available Amounts of all outstanding
Letters of Credit issued at the request of such Borrower, which funds shall be deposited into a
blocked deposit account or accounts to be established and

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maintained at the office of Citibank (or an affiliate thereof) in the name of the
Agent as collateral security for any outstanding Letter of Credit Liabilities in respect of Letters
of Credit issued at the request of such Borrower (the “LC Cash Collateral Accounts” in
respect of such Borrower). Each Borrower hereby pledges, and grants to the Agent for the
ratable benefit of each Issuing Bank and the Banks, a security interest in all funds held in the LC
Cash Collateral Accounts in respect of such Borrower from time to time and all proceeds thereof, as
security for the payment of all Letter of Credit Liabilities in respect of Letters of Credit issued
at the request of such Borrower. The Agent may from time to time withdraw funds then held in the LC
Cash Collateral Accounts in respect of any Borrower and apply such funds to reimburse the Agent for
all costs, fees, expenses and other amounts to the extent provided in the relevant
Credit Document and, second, to the payment of any Reimbursement Obligations owing by
such Borrower to any Issuing Bank as shall have become or shall become due and payable
by such Borrower to such Issuing Bank under this Agreement in connection with the
Letters of Credit issued at the request of such Borrower. The Agent shall exercise reasonable care
in the custody and preservation of any funds held in the LC Cash Collateral Accounts
and shall be deemed to have exercised such care if such funds are accorded treatment
substantially equivalent to that which the Agent accords its own property,
it being understood that the Agent shall not have any responsibility for taking any necessary steps
to preserve rights against any parties with respect to any such funds or
for investing such funds. If at any time (a) no Event of Default exists and
(b) the funds in the LC Cash Collateral Accounts in respect of any Borrower
deposited pursuant to this Section 6.2 exceed the aggregate amount of all Letter of Credit
Liabilities in respect of Letters of Credit issued at the request of such Borrower, the Agent
shall, upon request of such Borrower, return such excess to such Borrower. LC Cash Collateral
Accounts may also be created as contemplated by Section 2.5(c) whether or not an Event of Default
exists.

ARTICLE VII

THE AGENT AND ISSUING BANKS

     SECTION 7.1. Agent’s Authorization and Action. Each of the Banks and
Issuing Banks hereby appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement and the other Credit
Documents as are delegated to the Agent by the terms hereof and thereof, together with such powers
as are reasonably incidental thereto. As to any matters not expressly provided for by
the Credit Documents (including enforcement of the terms of this Agreement or collection of the
Reimbursement Obligations or Notes, fees and any other amounts due and payable pursuant to this
Agreement), the Agent shall not be required to exercise any discretion or take any action, but
shall be required to act or to refrain from acting (and shall be fully protected in so
acting or refraining from acting) upon the instructions of the Majority Banks, and such
instructions shall be binding upon all Banks and all holders of Notes; provided,
however, that the Agent shall not be required to take any action which exposes
the Agent to personal liability or which is contrary to the Credit Documents or
applicable law. The Agent agrees to give to each Bank prompt notice of each notice given to
it by any Borrower pursuant to the terms of this Agreement or any other Credit Document. The Agent
will promptly furnish to each Bank all items furnished to the Agent pursuant to Section 5.1(b).

     SECTION 7.2. Agent’s Reliance. Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken or omitted to be
taken by them or under or in connection with this Agreement, except for its or their
own gross negligence or willful misconduct. Without limitation of the
generality of the foregoing, the Agent: (i) may consult with legal counsel (including counsel for
any Borrower), independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (ii) makes no warranty or
representation to any Bank or Issuing Bank and shall not be responsible to any Bank or
Issuing Bank for any statements, warranties or representations (whether written or
oral) made in or in connection with this Agreement or any other

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Credit Document; (iii) shall not have any duty to ascertain or to inquire as to the
satisfaction, performance or observance of any of the terms, covenants or conditions of this
Agreement or any other Credit Document on the part of any Credit Party or to inspect
the property (including the books and records) of any Credit Party; (iv) shall not be responsible
to any Bank or Issuing Bank for the perfection, priority, existence, sufficiency or value of any
security, guaranty or insurance or for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement, any other Credit Document or any other
instrument or document furnished pursuant hereto or thereto; (v) shall incur no
liability under or in respect of any Credit Document by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telecopier, telegram, cable, telex or
otherwise) believed by it in its reasonable judgment to be genuine and signed or sent by the proper
party or parties; (vi) may treat any Issuing Bank that issues or has issued a Letter of Credit as
being the issuer of such Letter of Credit for all purposes and (vii) may treat a Bank as the
obligee of any Revolving Credit Advance or, if applicable, the payee of any Note as the holder
thereof, until the Agent receives and accepts a Transfer Agreement executed by TWC (if required by
this Agreement), the assignor Bank and the assigning Bank pursuant to Section 8.5. Without limiting
the generality of the foregoing, insofar as the Agent is concerned, for purposes of determining
compliance with any Credit Document (including Section 3.2 of this Agreement) with respect to any
Revolving Credit Advance, each Bank shall be deemed to have consented to, approved and accepted and
to be satisfied with each matter required under any Credit Document (including Section 3.2 of this
Agreement), unless the officer of the Agent responsible for the transactions contemplated by the
Credit Documents shall have received written notice from such Bank prior to such Revolving Credit
Advance specifying its objection thereto and such Bank shall not have made available to the Agent
any portion of such Revolving Credit Advance; provided that this sentence is solely for the
benefit of the Agent (and not any Credit Party) and shall not amend, waive or otherwise modify
Section 3.2, Section 6.1(b) or any other provision applicable to any Credit Party, whether in
respect of such Revolving Credit Advance or any other Revolving Credit Advance or matter.

     SECTION
7.3. Issuing Banks’ Reliance, Etc. Neither the Issuing Banks nor any directors,
officers, agents or employees of the Issuing Banks shall be liable for any action taken or omitted
to be taken by any of them under or in connection with this Agreement, except for its or their own
gross negligence or willful misconduct. The Issuing Banks shall not have, by reason of
this Agreement a fiduciary relationship in respect of any Bank; and
nothing in this Agreement, expressed or implied, is intended or shall be so construed as to impose
upon the Issuing Banks any obligations in respect of this Agreement except as expressly set forth
herein. Without limitation of the generality of the foregoing, each of the Issuing Banks: (i) may
consult with legal counsel (including counsel for any Borrower), independent public accountants and
other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes
no warranty or representation to any Bank or Issuing Bank and shall not be responsible
to any Bank or Issuing Bank for any statements, warranties or representations (whether written or
oral) made in or in connection with this Agreement or any other Credit Document; (iii) shall not
have any duty to ascertain or to inquire as to the satisfaction, performance or
observance of any of the terms, covenants or conditions of this Agreement or any other
Credit Document on the part of any Credit Party or to inspect the property (including
the books and records) of any Credit Party; (iv) shall not be responsible to any Bank or Issuing
Bank for the perfection, priority, existence, sufficiency or value of any security, guaranty or
insurance or for the due execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other Credit Document or any other instrument or document furnished
pursuant hereto or thereto; and (v) shall incur no liability under or in respect of any
Credit Document by acting upon any notice, consent, certificate or other instrument or writing
(which may be by telecopier, telegram, cable, telex or otherwise) believed by it in its reasonable
judgment to be genuine and signed or sent by the proper party or parties. Without limiting the
generality of the foregoing, insofar as each Issuing Bank is concerned, for purposes of determining
compliance with any Credit Document (including Section 3.2 of this Agreement) with respect to any
issuance or increase of any, or any addition of a letter

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of credit to this Agreement as a, Letter of Credit, each Bank shall be deemed to have
consented to, approved and  accepted and to be satisfied with each matter required under any Credit
Document (including Section 3.2 of this Agreement), unless the officer of such Issuing Bank
responsible for the transactions contemplated by the Credit Documents shall have received written
notice from such Bank prior to such issuance, increase or addition specifying its
objection thereto and such Bank shall not have accepted after such issuance, increase or addition
any Letter of Credit Fee associated with such increase or, in the case of an issuance
of any, or any addition of a letter of credit to this Agreement as a,
Letter of Credit, associated with such Letter of Credit; provided that this sentence is
solely for the benefit of the Issuing Banks (and not any Credit Party) and shall not amend, waive
or otherwise modify Section 3.2, Section 6.1(b) or any other provision applicable to any
Credit Party, whether in respect of such Letter of Credit or any other
Letter of Credit or matter.

     SECTION 7.4. Rights. With respect to its Commitments, the Revolving Credit Advances made by
it and the Notes, if any, issued to it, or any Letter of Credit Interest held by it,
Citibank shall have the same rights and powers under any such Note and the other Credit Documents
as any other Bank and may exercise the same as though it was not the Agent. With respect to its
Letter of Credit Commitments, the Reimbursement Obligations owed to it or any Letter of
Credit Interest held by it, each of the Issuing Banks shall have the same rights and powers under
this Agreement as any other Bank and may exercise the same as though it was not an Issuing Bank.
Citibank, each Issuing Bank and the respective affiliates of each may accept deposits from, lend
money to, act as trustee under indentures of, and generally engage in any kind of business with,
any Borrower, any Person who may do business with or own, directly or
indirectly, securities of any Borrower and any other Person, all as if Citibank
were not the Agent and each Issuing Bank were not an Issuing Bank, in each case without any duty to
account therefor to the Banks or the Issuing Banks. In the event that Citibank or any
of its affiliates shall be or become an indenture trustee under the Trust Indenture Act of 1939 (as
amended, the “Trust Indenture Act”) in respect of any securities issued or
guaranteed by any Credit Party, the parties hereto acknowledge and agree that any payment or
property received in satisfaction of or in respect of any Obligation of such Credit Party hereunder
or under any other Credit Document by or on behalf of Citibank in its capacity as the
Agent for the benefit of any Bank of Issuing Bank under any Credit Document (other than Citibank
or an affiliate of Citibank) and which is applied in accordance with the Credit
Documents shall be deemed to be exempt from the requirements of Section 311 of the
Trust Indenture Act pursuant to Section 311(b)(3) of the Trust Indenture Act.

     SECTION 7.5. Indemnification. (a) The Banks agree to indemnify
the Agent (to the extent not reimbursed by the Borrowers), ratably according to the
respective Letter of Credit Interests then held by each of the Banks plus the respective principal
amounts of the Revolving Credit Advances owed to each of them (or if no Letter of
Credit Interests or Revolving Credit Advances are at the time outstanding, ratably
according to their respective Revolving Credit Commitments for TWC (or, if such
Commitments have terminated, their respective Revolving Credit Commitments for TWC immediately prior
to such termination)), from and against any and all claims, damages, losses, liabilities, costs,
fees and expenses (including reasonable fees and disbursements of external counsel) of any kind
or nature whatsoever which may be imposed on, incurred by, or asserted against the
Agent in any way relating to or arising out of this Agreement or any other
Credit Document or any action taken or omitted by the Agent under this
Agreement or any other Credit Document, including any of the foregoing incurred in
connection with any action taken under Section 5.1(f) (EXPRESSLY INCLUDING ANY SUCH
CLAIM, DAMAGE, LOSS, LIABILITY, COST, FEE OR EXPENSE ATTRIBUTABLE TO THE ORDINARY, SOLE
OR CONTRIBUTORY NEGLIGENCE OF THE AGENT, BUT EXCLUDING ANY SUCH CLAIM, DAMAGE, LOSS,
LIABILITY, COST, FEE OR EXPENSE ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF THE AGENT). IT IS THE INTENT OF THE PARTIES HERETO THAT THE AGENT SHALL,
TO THE EXTENT PROVIDED IN THIS SECTION 7.5, BE INDEMNIFIED FOR ITS OWN ORDINARY, SOLE
OR

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CONTRIBUTORY NEGLIGENCE. Without limitation of the foregoing, each Bank agrees to reimburse
the Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including
external counsel fees) incurred by the Agent in connection with the preparation, execution,
delivery, administration, modification, amendment or enforcement (whether through negotiations,
legal proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement or any other Credit Document to the extent that
the Agent is not reimbursed for such expenses by the Borrowers.

     (b) The Banks agree to indemnify each Issuing Bank (to the extent not reimbursed by the
Borrowers), ratably according to the respective Letter of Credit Interests then held by each of the
Banks plus the respective principal amounts of the Revolving Credit Advances owed to
each of them (or if no Letter of Credit Interests or Revolving
Credit Advances are at the time outstanding, ratably according to their respective
Revolving Credit Commitments for TWC (or, if such Commitments have terminated, their respective
Revolving Credit Commitments for TWC immediately prior to such termination)), from and against any
and all claims, damages, losses, liabilities, costs, fees and expenses (including reasonable fees
and disbursements of external counsel) of any kind or nature whatsoever which may be
imposed on, incurred by, or asserted against such Issuing Bank in any way relating to or
arising out of this Agreement or any other Credit Document or any action taken
or omitted by any Issuing Bank under this Agreement or any other Credit Document (EXPRESSLY
INCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY, COST, FEE OR EXPENSE ATTRIBUTABLE TO
THE ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE OF ANY ISSUING BANK,
BUT EXCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY, COST, FEE OR EXPENSE
ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH ISSUING BANK). IT
IS THE INTENT OF THE PARTIES HERETO THAT AN ISSUING BANK SHALL, TO
THE EXTENT PROVIDED IN THIS SECTION 7.5, BE
INDEMNIFIED FOR ITS OWN ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE. Without limitation of the
foregoing, each Bank agrees to reimburse each Issuing Bank promptly upon demand for its ratable
share of any out-of-pocket expenses (including external counsel fees) incurred by such Issuing Bank
in connection with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or
legal advice in respect of rights or responsibilities under, this Agreement
or any other Credit Document to the extent that such Issuing Bank is not reimbursed
for such expenses by the Borrowers.

     SECTION 7.6. Successor Agent. The Agent may resign at any time as Agent under this
Agreement by giving written notice thereof to the Banks and the Borrowers and may be removed at any
time with or without cause by the Majority Banks. Upon any such resignation or removal,
the Majority Banks shall have the right to appoint, with the consent of the Borrowers (which
consent shall not be unreasonably withheld and shall not be required if an
Event of Default under Section 6.1(a) or 6.1(e) exists), a successor Agent from among the Banks. If
no successor Agent shall have been so appointed by the Majority Banks with
such consent, and shall have accepted such appointment, within 30 days after the retiring Agent’s
giving of notice of resignation or the Majority Banks’ removal of the retiring Agent, then
the retiring Agent may, on behalf of the Banks, appoint a successor Agent, which
shall be a Bank which is a commercial bank organized under the laws of the United States of America
or of any State thereof and having a combined capital and surplus of at
least $500,000,000. Upon the acceptance of any appointment as Agent under this Agreement by a
successor Agent, such successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent and shall function as the Agent under
this Agreement, and the retiring Agent shall be discharged from its duties and obligations as Agent
under this Agreement. After any retiring Agent’s resignation or removal hereunder as Agent, the
provisions of this Article VII shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Agent under this Agreement.

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     SECTION 7.7. Bank Decisions. Each of the Agent, the Banks and the Issuing Banks
acknowledges that it has, independently and without reliance upon the Agent, the Syndication Agent,
the Joint Lead Arrangers, the Issuing Banks or any other Bank and based on
the financial statements referred to in Section 4.1(e) and such other documents and
information as it has deemed appropriate, made its own credit analysis and its own
decision to enter into this Agreement. Each of the Agent, the
Banks and the Issuing Banks (in each case, both on its own behalf and on
behalf of its affiliates, directors, officers, employees and agents that are Indemnified
Parties) also acknowledges that it will, independently and without reliance upon the Agent, the
Syndication Agent, the Joint Lead Arrangers, the Issuing Banks or any other Bank and
based on such documents and information as it shall deem appropriate at the time, continue to
make its own decisions in taking or not taking action under this Agreement and the other
Credit Documents.

     SECTION 7.8. Certain Rights of the Agent. If the Agent shall request instructions from
the Majority Banks with respect to any act or action (including failure to act) in connection with
this Agreement or any other Credit Document, the Agent shall be entitled to refrain from such act
or taking such action unless and until the Agent shall have received instructions from
the Majority Banks; and it shall not incur liability to any Person by reason of so
refraining. Without limiting the foregoing, no Bank nor any Issuing Bank nor any Indemnified Party
shall have any right of action whatsoever against the Agent as a result of its acting or
refraining from acting hereunder or under any other Credit Document in
accordance with the instructions of the Majority Banks. Furthermore, except for action expressly
required of the Agent hereunder, the Agent shall in all cases be fully justified in failing or
refusing to act hereunder unless it shall be specifically indemnified to its
satisfaction by the Banks against any and all liability and expense which may be incurred by it by
reason of taking or continuing to take any such action.

     SECTION 7.9. Other Agents. The Syndication Agent, the Co-Documentation Agents and the
Joint Lead Arrangers have no duties or obligations under any Credit Document. None of
the Syndication Agent, the Co-Documentation Agents or the Joint Lead Arrangers shall
have, by reason of this Agreement or the other Credit Documents, a fiduciary relationship in
respect of any Bank or any Issuing Bank, and nothing in this Agreement or
other Credit Documents, express or implied, is intended or shall be so construed
to impose on any of the Syndication Agent, the Co-Documentation Agents or the Joint Lead Arrangers
any obligation in respect of this Agreement or other Credit Documents.

ARTICLE VIII

MISCELLANEOUS

     SECTION 8.1. Amendments. Etc. No amendment or waiver of any provision of this
Agreement, nor consent to any departure by any Borrower therefrom, shall in any event
be effective unless the same shall be in writing and signed by the Majority Banks and the
Borrowers, and then such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given; provided, however, that no amendment, waiver or
consent shall, unless in writing and signed by all the Banks directly affected thereby (without
limiting the generality of the foregoing, it is understood that all Banks are directly affected by
clauses (a), (f), (g), (h) and (i) below), do any of the following: (a) waive any of the
conditions specified in Section 3.2, (b) increase or extend the scheduled termination
date of any Commitment of any Bank or any Issuing Bank or subject any
Bank or any Issuing Bank to any additional obligation, (c) reduce the
Reimbursement Obligations, (d) reduce the principal of, or interest on, the Revolving
Credit Advances or any fees or other amounts payable hereunder, (e)
postpone any date fixed for any payment of the Reimbursement Obligations, Revolving Credit
Advances or any fees or other amounts payable hereunder, (f) change the
definition of Majority Banks or otherwise change the LC Participation Percentages, the percentage
of the Commitments or of the aggregate unpaid principal amount of the Revolving Credit
Advances, Letter of Credit Liabilities or the Reimbursement Obligations

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which shall be required for the Banks or any of them to take any action under
this Agreement, (g) release Pipeline Holdco from the Pipeline Holdco Guaranty (except
as set forth in Section 8.15) or release TWC from the TWC Guaranty
(except as set forth in Section 2.4), (h) amend or waive any
provision of, or consent to any departure by any Borrower from, Section 2.9,
this Section 8.1 or Section 8.15, or (i) increase the aggregate amount of
the Revolving Credit Commitments for TWC or the Letter of Credit
Commitments above $1,500,000,000; and provided further that no amendment, waiver
or consent shall, unless in writing and signed by the Agent in addition
to the Banks required above to take such action, affect the rights
or duties of the Agent under any Credit Document; and
provided further that no amendment, waiver or consent shall, unless
in writing and signed by each Issuing Bank in addition to the Banks required above
to take such action, affect the rights or duties of any Issuing Bank under
any Credit Document.

     SECTION 8.2. Notices, Etc. (a) Except as otherwise provided in Section
8.2(b), all notices and other communications provided for hereunder shall be in writing
(including telecopy communication) and mailed, telecopied or delivered, if to any
Bank, as specified opposite its name on Schedule I hereto or
specified in a Transfer Agreement for any assignee Bank delivered pursuant to Section
8.5(a); if to a Borrower, as specified opposite its name on Schedule II
hereto; if to an Issuing Bank to its address as specified opposite
its name on Schedule I; if to Citibank, as Agent, to its address at
2 Penns Way, Suite 200, New Castle, Delaware 19720 (telecopier number (302)
894-6120; email address: oploanswebadmin@citigroup.com), Attention: Williams Account
Officer, with a copy to Citicorp North America, Inc., 333 Clay Street, Suite 3700,
Houston, Texas 77002 (telecopier number: (713) 481-0247), Attention: The Williams
Companies, Inc. Account Officer; or, as to any Borrower, any Issuing Bank
or the Agent, at such other address as shall be designated by such party in a written notice
to the other parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Borrowers, each Issuing Bank and
the Agent; provided that materials required to be delivered pursuant to Section 5.1(b)(ii), (iii)
and (iv) shall be delivered to the Agent as specified in Section 8.2(b) or
as otherwise specified to any Borrower by the Agent; provided,
further, that any communication that (A) relates to a request for
a new, or a conversion of an existing, borrowing or other
extension of credit (including any election of an interest rate or Interest Period
relating thereto), (B) relates to the payment of any principal or other amount due
under this Agreement prior to the scheduled date therefor, (C) provides notice of
any Default or Event of Default or (D) is required to be delivered
to satisfy any condition precedent to the effectiveness of any provision of
this Agreement and/or any borrowing, Letter of Credit, increase of any Letter of
Credit, addition hereto of any letter of credit or other extension of credit
hereunder, shall be in writing (including telecopy communication) and mailed,
telecopied or delivered pursuant to this Section 8.2(a). All such notices and communications shall,
when mailed, telecopied or e-mailed, be effective when received in the
mail, sent by telecopier to any party to the telecopier number as
set forth herein or on Schedule I or Schedule II or
specified in a Transfer Agreement for any assignee Bank delivered pursuant
to Section 8.5(a) (or other telecopy number specified by such party
in a written notice to the other parties hereto) or confirmed
by e-mail, respectively, except that notices and communications to the Agent shall not be effective
until received by the Agent. Any notice or communication to a Bank
shall be deemed to be a notice or communication to any SPC designated by such Bank and
no further notice to an SPC shall be required. Delivery by telecopier of
an executed counterpart of this Agreement, any other Credit Document or any
amendment or waiver of any provision of this Agreement
or any other Credit Document (other than a Letter of Credit) shall be
effective as delivery of a manually executed counterpart thereof.

     (b) The Borrowers will have the option to provide to the Agent all information,
documents and other materials that they are obligated to furnish to the Agent
pursuant to the Credit Documents, including all notices, requests, financial
statements, financial and other reports, certificates and other information materials, but
excluding any such communication that (i) relates to a request for a new, or a
Conversion of an existing, borrowing, a new Letter of Credit, any increase of any
Letter of Credit, any

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addition hereto of any letter of credit or other extension of credit (including any election
of an interest rate or Interest Period relating thereto), (ii) relates to the payment of any
principal or other amount due under this Agreement prior to the scheduled date
therefor, (iii) provides notice of any Default or Event of Default or (iv) is required to be
delivered to satisfy any condition precedent to the effectiveness of any provision of this
Agreement and/or any borrowing, Letter of Credit, increase of any Letter of Credit, addition hereto
of any letter of credit or other extension of credit hereunder (all such non-excluded
communications being referred to herein collectively as “Communications”), by transmitting the
Communications in an electronic/soft medium to
oploanswebadmin@citigroup.com.

The Borrowers further agree that the Agent may make the Communications available to the
Banks and the Issuing Banks by posting the Communications on Intralinks or a substantially similar
electronic transmission system (the “Platform”). The Borrowers acknowledge that the
distribution of material through an electronic medium is not necessarily secure and that there are
confidentiality and other risks associated with such distribution.

THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENT PARTIES (AS DEFINED BELOW) DO
NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM
AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY
KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE
COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THE
RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES OF THE AGENT OR ANY
OF ITS AFFILIATES (COLLECTIVELY, “AGENT PARTIES”) HAVE ANY LIABILITY TO ANY BORROWER, ANY BANK, ANY
ISSUING BANK OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND INCLUDING DIRECT OR INDIRECT,
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR
OTHERWISE) ARISING OUT OF THE TRANSMISSION BY ANY BORROWER, ANY OF THE AGENT PARTIES OR ANY OTHER
PERSON OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT
PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE
RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

The Agent agrees that the receipt of the Communications by the Agent at its e-mail address set
forth above shall constitute effective delivery of the Communications to the Agent for
purposes of the Credit Documents. Each of the Banks and the Issuing Banks agrees that
notice to it (as provided in the next sentence) specifying that the Communications have been posted
to the Platform shall constitute effective delivery of the Communications to such Bank or Issuing
Bank, as the case may be, for purposes of the Credit Documents. Each of the Banks and the Issuing
Banks agrees (i) to notify the Agent in writing (including by electronic communication) from time
to time of such Bank’s or such Issuing Bank’s, as the case may be, e-mail address to which the
foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be
sent to such e-mail address.

Nothing herein shall prejudice the right of the Agent, any Issuing Bank or any Bank to give any
notice or other communication pursuant to any Credit Document in any other manner specified in such
Credit Document.

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     SECTION 8.3. No Waiver; Remedies. No failure on the part of
any Bank, any Issuing Bank or the Agent to exercise, and no delay in exercising, any
right under this Agreement or any other Credit Document shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies provided in this Agreement are cumulative
and not exclusive of any remedies provided by law.

     SECTION 8.4. Costs and Expenses.

     (a) (i) TWC agrees to pay, within 30 days of receipt by TWC of
request therefor, all reasonable out-of-pocket costs and expenses of the Joint Lead
Arrangers, the Syndication Agent, the Agent and the Issuing Banks in connection with the
syndication, preparation, execution, delivery, administration, modification and amendment of this
Agreement, the Letters of Credit, the Notes, or any other Credit Document and the other documents
to be delivered under this Agreement, including the reasonable fees and out-of-pocket expenses of
Bracewell & Giuliani, LLP, counsel for the Agent, with respect thereto and with
respect to advising the Agent as to its rights and responsibilities under this
Agreement, the Notes and any other Credit Document and the reasonable costs and expenses of the
Issuing Banks in connection with any Letter of Credit, and (ii) TWC agrees to pay on demand all
costs and expenses, if any (including reasonable counsel fees and out-of-pocket expenses), of the
Agent, the Syndication Agent, the Issuing Banks and each Bank in connection with the enforcement
(after the occurrence and during the continuance of an Event of Default and whether through
negotiations (including formal workouts or restructurings), legal proceedings or otherwise) against
any Credit Party of any Credit Document.

     (b) Each Borrower agrees, to the fullest extent permitted by law, to indemnify
and hold harmless the Agent, the Syndication Agent, the Issuing Banks, the Joint Lead Arrangers and
each Bank and each of their respective affiliates, directors, officers, employees and agents (the
“Indemnified Parties”) from and against any and all claims, damages, losses, liabilities,
costs, fees and expenses (including reasonable fees and disbursements of counsel) of any kind or
nature whatsoever for which any of them may become liable or which may be incurred by or asserted
against any of the Indemnified Parties (other than claims and related damages, losses, liabilities,
costs, fees and expenses made by one Bank (or its successors or assignees) against
another Bank) arising out of, related to or in connection with (i) any
Credit Document or any other document or instrument delivered in connection herewith, (ii) any
violation by any Credit Party or any Subsidiary of any Credit Party of any Environmental Law
or any other law, rule, regulation or order, (iii) any Revolving Credit
Advance, any Letter of Credit or the use or proposed use of the proceeds of any Revolving Credit
Advance or Letter of Credit, (iv) any of the Commitments, (v) any transaction in which any proceeds
of any Letter of Credit or Revolving Credit Advance are applied or (vi)
any investigation, litigation or proceeding, whether or not any of the Indemnified Parties is a
party thereto, related to or in connection with any of the foregoing or any
Credit Document (EXPRESSLY INCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY, COST, FEE OR EXPENSE
ATTRIBUTABLE TO THE ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE OF SUCH INDEMNIFIED PARTY, BUT
EXCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY, COST, FEE OR EXPENSE SOUGHT TO BE
RECOVERED BY ANY INDEMNIFIED PARTY TO THE EXTENT SUCH CLAIM, DAMAGE, LOSS, LIABILITY,
COST, FEE OR EXPENSE IS FOUND IN A FINAL, NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT
JURISDICTION TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED
PARTY OR THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE AFFILIATES, ADVISORS, DIRECTORS,
OFFICERS, EMPLOYEES OR AGENTS OF SUCH INDEMNIFIED PARTY). IT IS THE INTENT OF THE PARTIES HERETO
THAT EACH INDEMNIFIED

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PARTY SHALL, TO THE EXTENT PROVIDED IN THIS SECTION 8.4(b), BE INDEMNIFIED
FOR ITS OWN ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE.

     (c) If any payment of principal of, or Conversion of, or purchase
pursuant to Section 2.6(c) of, any portion of any Eurodollar Rate Advance owed by any Borrower to
any Bank is made other than on the last day of the Interest Period for such Eurodollar Rate
Advance, as a result of a payment, prepayment or Conversion pursuant to this Agreement or
acceleration of the maturity of the Notes pursuant to Section 6.1 or such purchase or assignment,
such Borrower shall, upon demand by such Bank (with a copy of such demand to the
Agent), pay to the Agent for the account of such Bank any amounts required to
compensate such Bank for any additional losses, costs or expenses that it may reasonably
incur as a result of such payment, purchase, assignment or Conversion, including any loss
(excluding loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by any Bank to fund
or maintain such Eurodollar Rate Advance.

     (d) Without prejudice to the survival of any other agreement of the Borrowers
hereunder, the agreements and obligations of the Borrowers contained in Sections 2.2,
2.6 and 2.8 and this Section 8.4 shall survive the payment in full of principal, interest and all
other amounts payable hereunder and under the Notes.

     SECTION 8.5. Binding Effect; Transfers.

     (a) This Agreement shall become effective when it shall have been executed by the Borrowers,
the Agent and the Issuing Banks, and when each Bank listed on the
signature pages hereof has delivered an executed counterpart hereof to the Agent, has sent to
the Agent a facsimile copy of its signature hereon or of its signature on a signature page
hereof or has notified the Agent that such Bank has executed this Agreement and thereafter shall be
binding upon and inure to the benefit of the Borrowers, the Agent, the Issuing Banks and each Bank
and their respective successors and assigns; provided that the Borrowers shall not have the right
to assign any of their rights hereunder or any interest herein without the prior written consent of
the Banks and the Issuing Banks. Each Bank may assign to one or more banks, financial
institutions or other entities all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Revolving Credit Advances owing to such Bank, any
Note or Notes held by such Bank, its Letter of Credit Interest and any or all of its Revolving
Credit Commitments); provided. that (i) each such assignment shall be of a constant, and
not a varying, percentage of all rights and obligations under this Agreement and the Notes, (ii)
except in the case of an assignment of all of a Bank’s rights and obligations under this Agreement
or an assignment to another Bank, the amount of the Revolving Credit Commitment for TWC of the
assigning Bank being assigned pursuant to each such assignment (determined as of the date of the
Transfer Agreement with respect to such assignment) shall be in an aggregate amount of $5,000,000
(or such lesser amount as may be consented to by the Agent and the Borrowers) and in an
integral multiple of $1,000,000 (unless otherwise consented to by the Agent and the
Borrowers), (iii) each such assignment shall be to an Eligible Assignee, (iv) the parties to each
such assignment shall execute and deliver to the Agent, for its acceptance and recording in the
Register maintained by the Agent, a Transfer Agreement and a processing and recordation fee of
$3,500 (which fee shall be paid by such Eligible Assignee) and (v) each such assignment of any
Revolving Credit Commitment for any Borrower shall be made only if the same percentage of the
Revolving Credit Commitments of such assigning Bank for each of the other Borrowers and the same
percentage of the LC Participation Percentage of the assigning Bank are simultaneously assigned by
the assigning Bank to the same Eligible Assignee pursuant to the same Transfer Agreement. Upon such
execution, delivery, acceptance and recording, from and after the effective date specified in each
Transfer Agreement, (x) the assignee thereunder shall be a party hereto as a “Bank” and, to the
extent that rights and obligations hereunder have been assigned to it pursuant to such Transfer
Agreement, have the rights and obligations of a Bank hereunder (including obligations to the
Issuing Banks and the

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Agent pursuant to Section 7.5) and (y) the Bank assignor thereunder
shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to
such Transfer Agreement, relinquish its rights and be released from its obligations
under this Agreement, except for rights and obligations which continue after repayment
of the Reimbursement Obligations and Revolving Credit Advances or termination of this Agreement
pursuant to the express terms of this Agreement (and, in the case of a Transfer Agreement covering
all of an assigning Bank’s rights and obligations under this Agreement, such Bank
shall cease to be a party hereto, except as to such rights and obligations).

     (b) By executing and delivering a Transfer Agreement, the Bank assignor thereunder and the
assignee thereunder confirm to and agree with each other and the other parties hereto as follows:
(i) other than as provided in such Transfer Agreement, such assignor makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations (whether written or oral) made in or in connection with
this Agreement, any other Credit Document or any other instrument or
document furnished pursuant hereto or in connection herewith, the perfection, priority,
existence, sufficiency or value of any security, guaranty or insurance or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of any Credit Document or
any other instrument or document furnished  pursuant hereto or in connection herewith, (ii)
such assignor makes no representation or warranty and assumes no responsibility with
respect to the financial condition of any Borrower or any other Person or the
performance or observance by any Borrower or any other Person of any of its
respective obligations under the Credit Documents or any other instrument or document furnished
pursuant hereto or in connection herewith; (iii) such assignee confirms that it has received a copy
of this Agreement, together with copies of such financial statements and such other documents and
information as it has deemed appropriate to make its own credit analysis and its
own decision to enter into such Transfer Agreement; (iv) such assignee will,
independently and without reliance upon the Agent, any Issuing Bank, such assignor or any other
Bank and based on such financial statements and such other documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis and its
own decisions in taking or not taking action under this Agreement, any of the other
Credit Documents or any other instrument or document; (v) such assignee confirms  that it is an
Eligible Assignee; (vi) such assignee appoints and authorizes the Agent to act as Agent
on its behalf and to exercise such powers and discretion under this Agreement, any
other Credit Document or any other document executed in connection herewith or
therewith as are delegated to the Agent by the terms hereof or thereof, together with such
powers and discretion as are reasonably incidental thereto; and (vii) such assignee agrees that it
will perform in accordance with their terms all of the obligations which by the terms of this
Agreement are required to be performed by it as a Bank.

     (c) The Agent shall maintain a copy of each Transfer Agreement delivered to and
accepted by it and a register for the recordation of the names and addresses of each Bank and each
Issuing Bank together with its respective Revolving Credit Commitment for each Borrower, Letter of
Credit Commitment, LC Participation Percentage, Letter of Credit Interest and the principal amount
of the Revolving Credit Advances owing to each Bank by each Borrower from time to time
(the “Register”). The entries in the Register made pursuant to this Section 8.5(c) shall be
conclusive and binding for all purposes, absent manifest error, and the Borrowers, the Agent, the
Issuing Banks and the Banks may treat as a Bank or Issuing Bank, as the case may be, each Person
whose name is recorded in the Register as a Bank or Issuing Bank, as the case may be,
hereunder for all purposes of this Agreement. The Register shall be available for inspection by any
Borrower, any Issuing Bank or any Bank at any reasonable time and from time to time upon reasonable
prior notice.

     (d) Upon its receipt of a Transfer Agreement executed and completed by an
assigning Bank and an assignee representing that it is an Eligible Assignee (and consented to by
the Agent, the Issuing Banks and, if required, by TWC), the Agent shall (i) accept such Transfer
Agreement, (ii) record the information contained therein in the Register and (iii) give prompt
notice thereof to the Borrowers. If

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requested by the assigning or assignee Bank, each Borrower after its receipt of such
notice, shall, at its own expense, execute and deliver to the Agent, any Notes
requested pursuant to Section 2.10(a) (with any Notes being replaced thereby being
promptly returned to such Borrower by the holder thereof). Such new Notes shall be
dated the effective date of such Transfer Agreement and shall otherwise be in substantially the
form of Exhibit G hereto.

     (e) Each Bank or Issuing Bank may sell participations to one or more banks or
other entities (other than the Borrowers or any of their Affiliates) in or
to all or a portion of its rights and obligations under this Agreement (including all
or a portion of its Commitment, the Revolving Credit Advances owing to it, the Notes held by it and
its Letter of Credit Interest); provided, that (i) such Bank’s or Issuing
Bank’s, as the case may be, obligations under this Agreement shall remain unchanged, (ii) such Bank
or Issuing Bank, as the case may be, shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) such Bank shall remain the
holder of any such Note for all purposes of this Agreement, (iv) the Borrowers, the Agent, each
other Issuing Bank and the other Banks shall continue to deal solely and directly with such Bank or
Issuing Bank, as the case may be, in connection with such Bank’s or Issuing Bank’s, as the case may
be, rights and obligations under this Agreement, (v) all amounts payable under this Agreement shall
be calculated as if such Bank or Issuing Bank, as the case may be, had not sold such participation,
and (vi) the terms of any such participation shall not restrict such Bank’s or Issuing
Bank’s, as the case may be, ability to consent to any departure by any Borrower herefrom without
the approval of the participant, except that the approval of the participant may be required
to the extent that such amendment, waiver or consent would reduce the principal of,
or interest on, the Reimbursement Obligations or Revolving Credit Advances or
any fees or other amounts payable hereunder, in each case to the extent subject to
such participation, or postpone any date fixed for any payment of principal of, or
interest on, the Reimbursement Obligations or Revolving Credit Advances or any
fees or other amounts payable hereunder, in each case to the extent subject to such participation.

     (f) Notwithstanding any other provisions set forth in this Agreement, any Bank
or Issuing Bank may at any time create a security interest in all or any portion of its
rights under this Agreement (including its Letter of Credit Interest) or any of its Notes in favor
of any Federal Reserve Bank in accordance with Regulation A of the Federal Reserve Board without
notice to or consent of the Borrowers, the Issuing Banks or the Agent.
Furthermore, any Bank or Issuing Bank may assign, as collateral or
otherwise, any of its rights (including rights to payments of principal of and/or
interest on its Letter of Credit Interest or Revolving Credit Advances made by such Bank) under
this Agreement, its Notes or any of its Letter of Credit Interest to any Federal
Reserve Bank without notice to or consent of any Borrower, the Issuing Banks or the Agent.

     (g) Notwithstanding anything to the contrary contained herein, any Bank or Issuing
Bank (a “Designating Bank”) with the consent of the Agent (and; if no Event of Default has
occurred and is continuing, the Borrowers) may grant to a special purpose funding
vehicle (an “SPC”), identified as such in writing from time to
time by the Designating Bank to the Agent and the Borrowers, the option to fund
all or any part of any payment to any Issuing Bank or Revolving Credit Advance which
the Designating Bank has agreed to make; provided that no Designating Bank
shall have granted at any one time such option to more than one SPC; and provided
further that (i) such Designating Bank’s obligations under this Agreement shall
remain unchanged, (ii) such Designating Bank shall remain solely responsible to the other parties
hereto for the performance of such obligations, (iii) the Borrowers, the Issuing Banks, the Agent
and the other Banks shall continue to deal solely and directly with such Designating
Bank in connection with such Designating Bank’s rights and obligations under this Agreement, (iv)
any such option granted to an SPC shall not constitute a commitment by such SPC to fund any drawing
under a Letter of Credit or to fund any Revolving Credit Advance, and (v) neither the grant nor the
exercise of such option to an SPC shall increase the costs or expenses or otherwise
increase or change the obligations of a Borrower under this Agreement (including its obligations
under Section 2.6). The issuance of a

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Letter of Credit or the making of a Revolving Credit Advance by an SPC hereunder
shall utilize the Commitment of the Designating Bank to the same extent, and as if, such Revolving
Credit Advance were made by or such Letter of Credit were issued by such Designating Bank. Each
party hereto hereby agrees that no SPC shall be liable for any indemnity or
similar payment obligation under this Agreement to the extent that any such indemnity or
similar payment obligations shall have been paid by its Designating Bank. In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the payment in
full of all outstanding commercial paper or other senior indebtedness of any SPC, it will not
institute against, or join any other person in instituting against such SPC any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under the laws of
the United States. In addition, notwithstanding anything to the contrary contained in this Section
8.5, an SPC may not assign its interest in any Letter of Credit Interests or Revolving
Credit Advance except that, with notice to, but without the prior written consent of, the Borrowers
and the Agent and without paying any processing fee therefor, such SPC may assign all or
a portion of its interests in any Letter of Credit Interests or Revolving Credit Advance
to the Designating Bank or to any financial institutions (consented
to by the Borrowers, Issuing Banks and Agent), providing liquidity and/or credit
support to or for the account of such SPC to support the funding or
maintenance of Letter of Credit Interests or Revolving Credit
Advance. Each Designating Bank shall serve as the agent of its SPC and shall on behalf of its SPC:
(i) receive any and all payments made for the benefit of such SPC and (ii) give and receive all
communications and notices, and vote, approve or consent hereunder, and take all actions hereunder,
including votes, approvals, waivers, consents and amendments under or relating to
this Agreement, the Notes and the other Credit Documents. Any such notice, communication,
vote, approval, waiver, consent or amendment shall be signed by the
Designating Bank for the SPC and need not be signed by such SPC on its own behalf. The Borrowers,
the Issuing Banks, the Agent and the Banks may rely thereon without any requirement that the
SPC sign or acknowledge the same or that notice be delivered to the
Borrowers or the SPC. This Section 8.5(g) may not be amended without the written
consent of any SPC, which shall have been identified to the Agent and the Borrowers.

     SECTION 8.6. Governing Law. This Agreement and the Notes shall be governed
by, and construed in accordance with, the laws of the State of New York.

     SECTION 8.7. Interest. It is the intention of the parties hereto that the Agent, each
Issuing Bank and each Bank shall conform strictly to usury laws applicable to it, if
any. Accordingly, if the transactions with the Agent, any Issuing Bank or any Bank
contemplated hereby would be usurious under applicable law, then, in that event, notwithstanding
anything to the contrary in this Agreement, any Credit Document or any other agreement entered into
in connection with or as security for this Agreement or any other Credit Document, it is agreed as
follows: (i) the aggregate of all consideration which constitutes interest under applicable law
that is contracted for, taken, reserved, charged or received by the Agent, such Issuing Bank or
such Bank, as the case may be, under this Agreement or any other Credit Document or
under any other agreement entered into in connection with or as security for this Agreement, the
Notes or the other Credit Documents shall under no circumstances exceed the maximum
amount allowed by such applicable law and any excess shall be canceled automatically and, if
theretofore paid, shall at the option of the Agent, such Issuing Bank or such Bank, as
the case may be, be credited by the Agent, such Issuing Bank or such Bank, as the case may be,
on the principal amount of the obligations owed to the Agent, such Issuing Bank or
such Bank, as the case may be, by the applicable Borrower or refunded by the Agent, such
Issuing Bank or such Bank, as the case may be, to the applicable Borrower, and (ii) in the event
that the maturity of any obligation payable to the Agent, such Issuing Bank or such
Bank, as the case may be, is accelerated or in the event of any required or permitted
prepayment, then such consideration that constitutes interest under law applicable to the Agent,
such Issuing Bank or such Bank, as the case may be, may never include more than the maximum amount
allowed by such applicable law and excess interest, if any, to the Agent, such Issuing Bank or such
Bank, as the case may be, provided for

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in this Agreement or otherwise shall be canceled automatically as of the date of
such acceleration or prepayment and, if theretofore paid, shall, at the option of the Agent, such
Issuing Bank or such Bank, as the case may be, be credited by the Agent, such Issuing Bank or such
Bank, as the case may be, on the principal amount of the obligations owed to the Agent, such
Issuing Bank or such Bank, as the case may be, by the applicable Borrower or refunded by the Agent,
such Issuing Bank or such Bank, as the case may be, to the applicable Borrower.

     SECTION 8.8. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement. Delivery of a counterpart of a signature page hereof by telecopier
shall be as effective as delivery of an original executed counterpart hereof.

     SECTION 8.9. Survival of Agreements, Representations and Warranties, Etc. All
warranties, representations and covenants made by any Borrower or any Authorized Officer of any
Borrower herein or in any certificate or other document delivered in connection with this Agreement
shall be considered to have been relied upon by the Banks and the Issuing
Banks and shall survive the issuance of any Letters of Credit and the issuance and delivery of the
Notes (if any) and the making of Revolving Credit Advances regardless of any investigation.

     SECTION 8.10. Confidentiality. Each Bank agrees that it will not disclose without the
prior consent of TWC (other than to employees, auditors, accountants, counsel or other professional
advisors of the Agent, any Issuing Bank or any Bank) any information with respect to the Borrowers,
which is furnished pursuant to this Agreement; provided that any Bank and any Issuing Bank may
disclose any such information (1) as has become generally available to the public, (2) as may be
required or appropriate in any report, statement or testimony submitted to or required
by any regulatory body having or claiming to have jurisdiction over such Bank or Issuing Bank or
submitted to or required by the Federal Reserve Board or the Federal Deposit Insurance Corporation
or similar organizations (whether in the United States or elsewhere) or their
successors, (3) as may be required or appropriate in response to any summons or
subpoena in connection with any litigation, (4) in order to comply
with any law, order, regulation or ruling applicable to such Bank or
Issuing Bank, (5) to the prospective transferee or grantee in
connection with any contemplated transfer of any of the Commitments, Letter of Credit
Interests or Revolving Credit Advances or any interest therein by such Bank or Issuing
Bank or the grant of an option to an SPC to fund any drawing under a Letter of Credit or Revolving
Credit Advance; provided that such prospective transferee executes an agreement with or for
the benefit of the Borrowers containing provisions substantially identical to those contained in
this Section 8.10; and provided further that if the
contemplated transfer is a grant of an option to fund a drawing under a Letter of Credit or
Revolving Credit Advance to an SPC pursuant to Section 8.5(g), such SPC may disclose, if prior
notice of the delivery thereof is given to the Borrowers, such information as may be required by
law or regulation to be delivered, (6) in connection with the exercise of any remedy by such Bank
or Issuing Bank following an Event of Default, (7) in connection with any litigation
involving such Bank pertaining to this Agreement, any of the Notes or any of the other
Credit Documents or any other document delivered in connection herewith, (8) to any Bank, any
Issuing Bank or the Agent or (9) to any affiliate of any Bank; provided that
such affiliate has agreed with or for the benefit of the Borrowers to be
bound by provisions substantially identical to those contained in this Section 8.10.

     SECTION 8.11. Waiver of Jury Trial. THE BORROWERS, THE AGENT, THE
ISSUING BANKS AND THE BANKS HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT,
ANY OF TEE NOTES, ANY LETTER OF CREDIT, ANY OTHER CREDIT DOCUMENT
OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

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     SECTION 8.12. Severability. In the event any one or more of the
provisions contained in this Agreement or in any other Credit Document should be held invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein and therein shall not in any way be affected or
impaired thereby. The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

     SECTION 8.13. Forum Selection and Consent to Jurisdiction: Damages.
ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH,
ANY CREDIT DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE AGENT, THE BANKS,
ANY ISSUING BANK OR THE BORROWERS IN CONNECTION HEREWITH OR THEREWITH MAY
BE BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE COUNTY
OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK, PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST
ANY SECURITY MAY BE BROUGHT, AT THE AGENT’S OPTION, IN THE COURTS OF ANY
JURISDICTION WHERE SUCH SECURITY MAY BE FOUND. THE BORROWERS IRREVOCABLY CONSENT
TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE
WITHIN OR WITHOUT THE STATE OF NEW YORK AT TEE ADDRESS FOR NOTICES SPECIFIED IN
ACCORDANCE WITH SECTION 8.2. THE BORROWERS HEREBY EXPRESSLY AND
IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
THEY MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT
ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT
ANY BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM
JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE)
WITH RESPECT TO ITSELF OR ITS PROPERTY, SUCH BORROWER HEREBY IRREVOCABLY WAIVES TO THE
FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THE CREDIT
DOCUMENTS. EACH OF THE BORROWERS, THE AGENT, THE ISSUING BANKS AND THE BANKS HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY ACTION OR PROCEEDING
REFERRED TO IN THIS SECTION 8.13 ANY EXEMPLARY, PUNITIVE, SPECIAL OR
CONSEQUENTIAL DAMAGES, PROVIDED THAT NOTHING HEREIN SHALL CONSTITUTE A WAIVER BY THE AGENT,
ANY ISSUING BANK OR ANY BANK OF ANY RIGHT TO RECEIVE
FULL PAYMENT OF ALL OBLIGATIONS. TWC HEREBY AGREES TO SERVE AS AGENT FOR SERVICE OF
PROCESS ON BEHALF OF EACH OTHER CREDIT PARTY IN CONNECTION WITH THE CREDIT DOCUMENTS
AND TBE OBLIGATIONS.

     SECTION 8.14. Right of Set-off. Upon (i) the occurrence and during the continuance of
any Event of Default and (ii) either, as to any Borrower, (a) the Revolving Credit Advances owed by
such Borrower having become due and payable in accordance with the terms hereof or (b)
the making of the request or the granting of the consent specified by Section 6.1.
to authorize the Agent to declare the Revolving Credit Advances owed by such Borrower due
and payable pursuant to the provisions of Section 6.1, each Bank and each Issuing Bank is
hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special, time or

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demand, provisional or final) at any time held and other indebtedness at any time owing by
such Bank or such Issuing Bank, as the case may be, to or for the credit or the account
of such Borrower against any and all of the obligations of such Borrower now or hereafter existing
under this Agreement and the other Credit Documents, irrespective of whether
or not such Bank or such Issuing Bank, as the case may be, shall have
made any demand under this Agreement or any other Credit Document and although such
obligations may be unmatured. Each Bank or Issuing Bank, as the case may be, agrees promptly to
notify such Borrower after such set-off and application made by such Bank or such
Issuing Bank, as the case may be, provided that the failure to give such notice shall not affect
the validity of such set-off and application. The rights of each Bank and each Issuing Bank under
this Section are in addition to other rights and remedies (including other rights of set-off) which
such Bank or such Issuing Bank, as the case may be, may have.

     SECTION 8.15. Termination of Security Documents and Pipeline Holdco Guaranty. If (i)
the senior unsecured long-term debt of TWC is rated (a) BBB- or higher by S&P or
Baa3 or higher by Moody’s, (b) no lower than BB+ by S&P and
(c) no lower than Ba1 by Moody’s, (ii) no Default or Event of Default has occurred and
is continuing, and (iii) the Agent has received (1) a notice from Pipeline Holdco
requesting that the Security Documents and the Pipeline Holdco Guaranty be terminated, (2) a
certificate of TWC certifying, as of the date thereof, the ratings by both S&P and Moody’s of such
debt and that no Default or Event of Default has occurred and
is continuing, (3) such other documentation confirming the foregoing that the Agent may reasonably
request, then the Security Documents and the Pipeline Holdco Guaranty shall terminate on
the date (the “Pipeline Holdco Release Date”) that is 5 Business Days following the
Agent’s receipt of all such items. With reasonable promptness following such termination, the Agent
will, at the expense of TWC, execute and deliver (A) to Pipeline Holdco such documents as Pipeline
Holdco may reasonably request to evidence such termination and (B) to the pledgor of
any promissory note delivered to the Agent pursuant to Section 5.2(m), such documents as
such pledgor may reasonably request to evidence such termination and any such promissory
note as may then be in the Agent’s possession against the contemporaneous receipt by the Agent of a
written receipt therefor in a reasonable form provided by the Agent.

     SECTION 8.16. Termination of 2005 Credit Agreement. The “Revolving Credit Commitments”
and “Letter of Credit Commitments” (as those terms are defined in the 2005 Credit Agreement) are
hereby terminated as of the date hereof. This Section 8.16 shall constitute each Borrower’s notice
of such termination under Section 2.4 of the 2005 Credit Agreement and each Borrower’s agreement
that, on and after the date hereof, it has no further right to borrow under, or request the
issuance of any “Letter of Credit” (as defined in the 2005 Credit Agreement) under, the  2005 Credit
Agreement: Each Bank that is a “Bank” (as defined in the 2005 Credit Agreement) and each Issuing
Bank that is an “Issuing Bank” (as defined in the 2005 Credit Agreement) hereby (i)
waive any requirement that such notice be given at least three “Business Days” (as defined in the
2005 Credit Agreement) prior to such termination, (ii) consent to the release of all security and
guaranties created or existing under the 2005 Credit Agreement, and (iii) authorize the
“Collateral Agent” (as defined in the 2005 Credit Agreement) to execute all terminations, releases
and documents in connection therewith and deliver the “Collateral” (as defined in the 2005 Credit
Agreement) to TWC or any of its Subsidiaries.

[Remainder of page intentionally left blank — signature pages follow]

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     IN WITNESS WHEREOF, the patties hereto have caused this Agreement to be executed
by their respective officers thereunto duly authorized, as of the date first above
written.

BORROWERS:

					
	 	

THE WILLIAMS COMPANIES, INC.

 	 
	 	By:  	/s/ Rodney J. Sailor
 	 
	 	 	Name:  	Rodney J. Sailor 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 
	 	WILLIAMS PARTNERS L.P.

By: Williams Partners GP LLC, its general partner
 
	 
	 	By:  	
/s/ Rodney J. Sailor
 	 
	 	 	Name:  	Rodney J. Sailor 	 
	 	 	Title:  	Treasurer 	 
	 
	 	NORTHWEST PIPELINE CORPORATION

 	 
	 	By:  	/s/ Rodney J. Sailor
 	 
	 	 	Name:  	Rodney J. Sailor 	 
	 	 	Title:  	Assistant Treasurer 	 
	 
	 	TRANSCONTINENTAL GAS PIPE LINE CORPORATION

 	 
	 	By:  	/s/ Rodney J. Sailor
 	 
	 	 	Name:  	Rodney J. Sailor 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

Signature Page to the Credit Agreement

 

AGENT:

					
	 	

CITIBANK, N.A., as Agent

 	 
	 	By:  	/s/
[ILLEGIBLE]
 	 
	 	 	Authorized Officer 	 
	 	 	 	 

ISSUING BANKS:

					
	 	

CITIBANK, N.A., as Issuing Bank

 	 
	 	By:  	/s/
[ILLEGIBLE]
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 	BANK OF AMERICA, NATIONAL ASSOCIATION, as Issuing Bank

 	 
	 	By:  	/s/ Claire M. Liu
 	 
	 	 	Authorized Officer 
CLAIRE M. LIU	 
	 	 	Senior Vice President 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as Issuing Bank

 	 
	 	By:  	/s/
[ILLEGIBLE]
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

Signature Page to the Williams Credit Agreement

 

BANKS:

					
	 	

CITIBANK, N.A.

 	 
	 	By:  	/s/
[ILLEGIBLE]
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 
	 	BANK OF AMERICA, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Claire M. Liu
 	 
	 	 	Authorized Officer 	 
	 	 	CLAIRE M. LIU

Senior Vice President	 
	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/
[ILLEGIBLE]
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 
	 	THE BANK OF NOVA SCOTIA

 	 
	 	By:  	/s/ Vicki Gibson
 	 
	 	 	Authorized Officer 	 
	 	 	Vicki Gibson, Assistant Agent 	 
	 	 	 	 
	 
	 	THE ROYAL BANK OF SCOTLAND PLC

 	 
	 	By:  	/s/ Patricia Dundee
 	 
	 	 	Authorized Officer 	 
	 	 	Patricia Dundee 	 
	 	 	Managing Director 	 
	 
	 	ABN AMRO BANK N.V.

 	 
	 	By:  	/s/ James L. Moyes
 	 
	 	 	Authorized Officer:
 James L. Moyes 	 
	 	 	Title:  	Managing Director 	 
	 
	 	BANK OF OKLAHOMA, NA

 	 
	 	By:  	/s/ Robert D. Mattax
 	 
	 	 	Authorized Officer 	 
	 	 	Robert D. Mattax, Senior Vice President 	 
	 	 	 	 

Signature Page to the Williams Credit Agreement

 

					
	 	

BARCLAYS BANK PLC

 	 
	 	By:  	/s/ Alison McGuigan
 	 
	 	 	Authorized Officer - Alison McGuigan - Associate Director 	 
	 	 	 	 
	 	BAYERISCHE LANDESBANK,
Cayman Islands Branch
 	 
	 
	 	By:  	/s/ Stephen Christenson
 	 
	 	 	Authorized Officer 	 
	 	 	Stephen Christenson 	 
	 	 	First Vice President 	 
	 	 	 
	 	By:  	/s/ Norman McClave
 	 
	 	 	Authorized Officer 	 
	 	 	Norman McClave 	 
	 	 	First Vice President 	 

BNP PARIBAS

	 	 	 	 	 	 	 	 	 	 	 

	By:

	 	/s/ Larry Robinson
	 	 	 	 	 	/s/ Mark Cox	 	 
	 

	 	 

Authorized Officer

Larry Robinson

Director
	 	 
	 	 	 	 

Authorized Officer

Mark Cox 

Director
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	CALYON NEW YORK BRANCH	 	 	 	CALYON NEW YORK BRANCH	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Darrell Stanley
	 	 	 	By:
	 	/s/ Michael Willis	 	 
	 

	 	 

Authorized Officer

Darrell Stanley
	 	 
	 	 	 	 

Authorized Officer

Michael Willis
	 	 

					
	 	

LEHMAN COMMERCIAL PAPER INC.

 	 
	 	By:  	/s/ Frank P. Turner
 	 
	 	 	Authorized Officer 	 
	 	 	Frank P. Turner 	 
	 	 	Vice President 	 
	 
	 	MERRILL LYNCH CAPITAL CORPORATION

 	 
	 	By:  	/s/ Carol J.E. Feeley
 	 
	 	 	Authorized Officer - Carol J.E. Feeley 	 
	 	 	Vice President 

	 
	 
	 	MIZUHO CORPORATE BANK, LTD.

 	 
	 	By:  	/s/ Raymond Ventura
 	 
	 	 	Authorized Officer 	 
	 	 	Raymond Ventura 	 
	 	 	Deputy General Manager 	 
	 

Signature Page to the Williams Credit Agreement

 

					
	 	

NATEXIS BANQUE POPULAIRES

 	 
	 	By:  	/s/ Daniel Payer
 	 
	 	 	Authorized Officer 	 
	 	 	Daniel Payer 	 
	 	 	Vice President	 
	 
	 	By:  	/s/ Louis P. Laville
 	 
	 	 	Authorized Officer 	 
	 	 	Louis P. Laville, III	 
	 	 	
Vice President & Group Manager 	 
	 
	 	REGIONS BANK

 	 
	 	By:  	/s/
[ILLEGIBLE]
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 	ROYAL BANK OF CANADA

 	 
	 	By:  	/s/
[ILLEGIBLE]
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

HOUSTON AGENCY
 	 

	 	 	 	 	 	 	 	 	 	 	 

	By:

	 	/s/ [ILLEGIBLE]
	 	 	 	By:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 

Authorized Officer
	 	 
	 	 	 	 

Authorized Officer
	 	 

					
	 	

TORONTO DOMINION (TEXAS) LLC

 	 
	 	By:  	/s/ Jim Bridwell
 	 
	 	 	Authorized Agent 	 
	 	 	Jim Bridwell 	 
	 
	 	WACHOVIA BANK, N.A.

 	 
	 	By:  	 /s/ [ILLEGIBLE] 	 
	 	 	
Authorized Officer 	 
	 
	 	WESTLB AG, NEW YORK BRANCH

 	 
	 	By:  	/s/ Edward Bankole
 	 
	 	 	Authorized Officer 	 
	 	 	Edward Bankole

Mananging Director 	 
	 	 	 
	 	By:  	/s/ Dee Dee Sklar
 	 
	 	 	Authorized Officer 	 
	 	 	DEE DEE SKLAR

MANAGING DIRECTOR 	 
	 
	 	WACHOVIA BANK, N.A.

 	 
	 	By:  	
/s/ Jay Buckman 	 
	 	 	
Authorized Officer -  Jay Buckman, Vice President 	 
	 

Signature Page to the Williams Credit Agreement

 

SCHEDULE I

ADDRESSES AND APPLICABLE LENDING OFFICES

	 	 	 	 	 
	Name of Issuing Bank	 	 	 	Address for Notices
	Citibank, N.A.
	 	 	 	Citibank, N.A.
	 
	 	 	 	2 Penns Way, Suite 200
	 
	 	 	 	New Castle, Delaware 19720
	 
	 	 	 	Telecopier: (302) 894-6120
	 
	 	 	 	Attn: The William Companies, Inc.
	 
	 	 	 	Account Officer
	 
	 	 	 	 
	 
	 	 	 	Email address:
	 
	 	 	 	oploanswebadmin@citigroup.com
	 
	 	 	 	 
	 
	 	 	 	with copies to:
	 
	 	 	 	 
	 
	 	 	 	Citicorp North America, Inc.
	 
	 	 	 	333 Clay Street, Suite 3700
	 
	 	 	 	Houston, Texas 77002
	 
	 	 	 	Telecopier: (713) 481-0247
	 
	 	 	 	Attn: The Williams Companies, Inc.
	 
	 	 	 	Account Officer
	 
	 	 	 	 
	Bank of America,
	 	 	 	Bank of America, National Association
	National Association
	 	 	 	 
	 
	 	 	 	901 Main Street, 14th Floor
	 
	 	 	 	Dallas, Texas 75202
	 
	 	 	 	Telecopier: (214) 290-9425
	 
	 	 	 	Telephone: (214) 209-2154
	 
	 	 	 	Attn: Tracy F. Mackie
	 
	 	 	 	Email address:
	 
	 	 	 	tracy.f.mackie@bankofamerica.com
	 
	 	 	 	 
	 
	 	 	 	with copies to:
	 
	 	 	 	 
	 
	 	 	 	Bank of America, National Association
	 
	 	 	 	Bank of America Center
	 
	 	 	 	700 Louisiana, 8th Floor
	 
	 	 	 	Houston, Texas 77002
	 
	 	 	 	Telecopier: (713) 247-7286
	 
	 	 	 	Telephone: (713) 247-7268
	 
	 	 	 	Attn: Phyllis Tennard
	 
	 	 	 	Email address:
	 
	 	 	 	Phyllis.tennard@bankofamerica.com
	 
	 	 	 	 
	JPMorgan Chase Bank. N.A.
	 	 	 	JPMorgan Chase Bank, N.A.
	 
	 	 	 	270 Park Avenue, 21st Floor
	 
	 	 	 	New York, New York 10017
	 
	 	 	 	Telecopier: (212) 270-3897
	 
	 	 	 	Telephone: (212) 270-4676
	 
	 	 	 	Attn: Peter Ling

 

 

	 	 	 	 	 
	Name of Bank	 	Domestic and Eurodollar Lending Offices	 	Address for Notices
	Citibank, N.A.
	 	Citibank, N.A.	 	Citibank, N.A.
	 
	 	399 Park Avenue	 	2 Penns Way, Suite 200
	 
	 	New York New York 10043	 	New Castle, Delaware 19720
	 
	 	 	 	Telecopier: (302) 894-6120
	 
	 	 	 	 
	 
	 	 	 	Attn: The Williams Companies, Inc.
	 
	 	 	 	Account Officer
	 
	 	 	 	 
	 
	 	 	 	Email address:
	 
	 	 	 	oploanswebadmin@citigroup.com
	 
	 	 	 	 
	 
	 	 	 	with copies to:
	 
	 	 	 	 
	 
	 	 	 	Citicorp North America, Inc.
	 
	 	 	 	333 Clay Street, Suite 3700
	 
	 	 	 	Houston, Texas 77002
	 
	 	 	 	Telecopier: (713) 481-0247
	 
	 	 	 	Attn: The Williams Companies, Inc.
	 
	 	 	 	Account Officer
	 
	 	 	 	 
	Bank of America,
	 	Bank of America, National Association	 	Bank of America, National Association
	National Association
	 	901 Main Street, 14th Floor	 	901 Main Street, 14th Floor
	 
	 	Dallas, Texas 75202	 	Dallas, Texas 75202
	 
	 	Telecopier: (214) 290-9425	 	Telecopier: (214) 290-9425
	 
	 	Telephone: (214) 209-2154	 	Telephone: (214) 209-2154
	 
	 	Attn: Tracy F. Mackie	 	Attn: Tracy F. Mackie
	 
	 	Email address:	 	Email address:
	 
	 	tracy.f.mackie@bankofamerica.com	 	tracy.f.mackie@bankofamerica.com
	 
	 	 	 	 
	 
	 	with copies to:	 	with copies to:
	 
	 	 	 	 
	 
	 	Bank of America, National Association	 	Bank of America, National Association
	 
	 	Bank of America Center	 	Bank of America Center
	 
	 	700 Louisiana, 8th Floor	 	700 Louisiana, 8th Floor
	 
	 	Houston, Texas 77002	 	Houston, Texas 77002
	 
	 	Telecopier: (713) 247-7286	 	Telecopier: (713) 247-7286
	 
	 	Telephone: (713) 247-7235	 	Telephone: (713) 247-7235
	 
	 	Attn: Claire Liu	 	Attn: Claire Liu
	 
	 	 	 	 
	The Bank of Nova
	 	The Bank of Nova Scotia	 	The Bank of Nova Scotia
	Scotia
	 	Atlanta Agency	 	Atlanta Agency
	 
	 	Suite 2700, 600 Peachtree Street N.E.	 	Suite 2700, 600 Peachtree Street N.E.
	 
	 	Atlanta, Georgia 30308	 	Atlanta, Georgia 30308
	 
	 	Telecopier: (404) 888-8998	 	Telecopier: (404) 888-8998
	 
	 	Telephone: (404) 877-1552	 	Telephone: (404) 877-1552
	 
	 	Attn: Phyllis Walker	 	Attn: Phyllis Walker
	 
	 	 	 	 
	 
	 	with a copy to:	 	with a copy to:                   
	 
	 	 	 	 
	 
	 	1100 Louisiana, Suite 3000	 	1100 Louisiana, Suite 3000
	 
	 	Houston, Texas 77002	 	Houston, Texas 77002
	 
	 	Telecopier: (713) 752-2425	 	Telecopier: (713) 752-2425
	 
	 	Telephone: (713) 759-3435	 	Telephone: (713) 759-3435
	 
	 	Attn: Joe Lattanzi	 	Attn: Joe Lattanzi

-2-

 

	 	 	 	 	 
	 	 	 	 	 
	Name of Bank	 	Domestic and Eurodollar Lending Offices	 	Address for Notices
	JPMorgan Chase
	 	JPMorgan Chase Bank, N.A.	 	JPMorgan Chase Bank, N.A.
	Bank, N.A.
	 	270 Park Avenue, 21st Floor	 	270 Park Avenue, 2lst,Floor
	 
	 	New York, New York 10017	 	NewYork, NewYork 10017
	 
	 	Telecopier: (212) 270-3897	 	Telecopier: (212) 270-3897
	 
	 	Telephone: (212) 270-4676	 	Telephone: (212) 270-4676
	 
	 	Attn: Peter Ling	 	Attn: Peter Ling
	 
	 	 	 	 
	Lehman Commercial
	 	Lehman Commercial Paper Inc.	 	Lehman Commercial Paper Inc.
	Paper Inc.
	 	745 Seventh Avenue, 7th Floor	 	745 Seventh Avenue, 7th Floor
	 
	 	New York, New York 10019	 	New York, New York 10019
	 
	 	Telecopier: (646) 758-4617	 	Telecopier: (646) 758-4617
	 
	 	Telephone: (212) 526-7150	 	Telephone: (212) 526-7150
	 
	 	Attn: Craig Malloy	 	Attn: Craig Malloy
	 
	 	Email address: CMalloy@lehman.com	 	Email address: CMalloy@lehman.com
	 
	 	 	 	 
	 
	 	with a copy to:	 	with a copy to:
	 
	 
	 	LPG Loans	 	LPG Loans
	 
	 	745 7th Avenue, 7th Floor	 	745 7th Avenue, 7th Floor
	 
	 	New York, NY 10019	 	New York, NY 10019
	 
	 	Telecopier: (646) 758-4665	 	Telecopier: (646) 758-4665
	 
	 	Telephone: (212) 526-7217	 	Telephone: (212) 526-7217
	 
	 	Email: lpgloans@lehman.com	 	Email: lpgloans@lehman.com
	 
	 	 	 	 
	The Royal Bank of
	 	The Royal Bank of Scotland plc	 	The Royal Bank of Scotland plc
	Scotland plc
	 	New York Branch	 	New York Branch
	 
	 	101 Park Avenue, 6th Floor	 	101 Park Avenue, 6th Floor
	 
	 	New York, New York 10178	 	New York, New York 10178
	 
	 	 	 	Attn: Julie Strelchenko
	 
	 	 	 	Telecopier: (212) 401-1404
	 
	 	 	 	Telephone: (212) 401-1406
	 
	 	 	 	 
	ABN AMRO Bank
	 	ABN AMRO Bank N.V.	 	ABN AMRO Bank N.V.
	N.V.
	 	540 West Madison Street, Suite 2621	 	540 West Madison Street, Suite 2621
	 
	 	Chicago, IL 60661	 	Chicago, IL 60661
	 
	 	Attn: Credit Administration	 	Attn: Credit Administration
	 
	 	Telecopier: (312) 992-5111	 	Telecopier: (312) 992-5111
	 
	 	Email: melanie.dziobas@abnamro.com	 	Email: melanie.dziobas@abnamro.com
	 
	 	 	 	 
	 
	 	with a copy to:	 	with a copy to:
	 
	 
	 	ABN AMRO Bank N.V.	 	ABN AMRO Bank N.V.
	 
	 	4400 Post Oak Parkway	 	4400 Post Oak Parkway
	 
	 	Suite 1500	 	Suite 1500
	 
	 	Houston, TX 77027	 	Houston, TX 77027
	 
	 	Attn: Todd Vaubel	 	Attn: Todd Vaubel
	 
	 	Telecopier: (832) 681-7141	 	Telecopier: (832) 681-7141
	 
	 	Email: todd.vaubel@abnamro.com	 	Email: todd.vaubel@abnamro.com

-3-

 

	 	 	 	 	 
	Name of Bank	 	Domestic and Eurodollar Lending Offices	 	Address for Notices
	Bank of Oklahoma,
	 	Bank of Oklahoma, NA	 	Bank of Oklahoma, NA
	NA
	 	PO Box 2300	 	PO Box 2300
	 
	 	Bank of OK Tower - 8SW	 	Bank of OK Tower - 8SW
	 
	 	One Williams Center	 	One Williams Center
	 
	 	Tulsa, Oklahoma 74192	 	Tulsa, Oklahoma 74192
	 
	 	Attn: Robert Mattax	 	Attn: Robert Mattax
	 
	 	Telecopier: (918) 295-0400	 	Telecopier: (918) 295-0400
	 
	 	Telephone: (918) 588-6217	 	Telephone: (918) 588-6217
	 
	 	 	 	 
	Barclays Bank PLC
	 	Barclays Bank PLC	 	Barclays Bank PLC
	 
	 	200 Park Avenue, 4th Floor	 	200 Park Avenue, 4th Floor
	 
	 	New York, New York 10166	 	New York, New York 10166
	 
	 	Telecopier: (212) 412-7600	 	Telecopier: (212) 412-7600
	 
	 	Telephone: (212) 412-4029	 	Telephone: (212) 412-4029
	 
	 	Attn: Nicholas Bell	 	Attn: Nicholas Bell
	 
	 	 	 	 
	Bayerische
	 	Bayerische Landesbank	 	Bayerische Landesbank
	Landesbank
	 	560 Lexington Avenue	 	560 Lexington Avenue
	 
	 	New York, New York 10022	 	New York, New York 10022
	 
	 	Attn: Patricia Sanchez	 	Attn: Patricia Sanchez
	 
	 	Telecopier: (212) 310-9930	 	Telecopier: (212) 310-9930
	 
	 	Telephone: (212) 310-9810	 	Telephone: (212) 310-9810
	 
	 	Email: psanchez@bayernlbny.com	 	Email: psanchez@bayernlbny.com
	 
	 	 	 	 
	BNP Paribas
	 	BNP Paribas	 	BNP Paribas
	 
	 	919 Third Avenue	 	919 Third Avenue
	 
	 	New York, New York 10022	 	New York, New York 10022
	 
	 	Attn: Cory Lantin	 	Attn: Cory Lantin
	 
	 	Telecopier: (212) 841-2683	 	Telecopier: (212) 841-2683
	 
	 	Telephone: (212) 471-6331	 	Telephone: (212) 471-6331
	 
	 	 	 	 
	Calyon New York
	 	Calyon New York Branch	 	Calyon New York Branch
	Branch
	 	1301 Avenue of the Americas	 	1301 Avenue of the Americas
	 
	 	New York, New York 10019	 	New York, New York 10019
	 
	 	Telecopier: (917) 849-5440	 	Telecopier: (917) 849-5440
	 
	 	Telephone: (212) 261-7411	 	Telephone: (212) 261-7411
	 
	 	Attn: Gener David	 	Attn: Gener David
	 
	 	Email: gener.david@us.calyon.com	 	Email: gener.david@us.calyon.com
	 
	 	 	 	 
	 
	 	 	 	With a copy to:
	 
	 	 	 	 
	 
	 	 	 	Calyon New York Branch
	 
	 	 	 	1301 Travis Suite 2100
	 
	 	 	 	Houston, TX 77002
	 
	 	 	 	Telecopier: (713) 890-8668
	 
	 	 	 	Telephone: (713) 890-8602
	 
	 	 	 	Attn: Darrell Stanley
	 
	 	 	 	Email: Darrell.Stanley@us.calyon.com

-4-

 

	 	 	 	 	 
	Name of Bank	 	Domestic and Eurodollar Lending Offices	 	Address for Notices
	Merrill Lynch Capital
	 	Merrill Lynch Capital Corporation	 	Merrill Lynch Capital Corporation
	Corporation
	 	4 World Financial Center, 7th Floor	 	4 World Financial Center, 7th Floor
	 
	 	New York, New York 10080	 	New York, New York 10080
	 
	 	Attn: Carol Seely	 	Attn: Carol Seely
	 
	 	Telecopier: (212) 738-1649	 	Telecopier: (212) 738-1649
	 
	 	Telephone: (212) 449-8414	 	Telephone: (212) 449-8414
	 
	 	 	 	 
	Mizuho Corporate
	 	Mizuho Corporate Bank, Ltd.	 	Mizuho Corporate Bank, Ltd.
	Bank, Ltd.
	 	1251 Avenue of the Americas	 	1251 Avenue of the Americas
	 
	 	New York, NY 10020-1104	 	New York, NY 10020-1104
	 
	 	Attn: Wayne Gray	 	Attn. Wayne Gray
	 
	 	Telecopier: (212) 282-4488	 	Telecopier: (212) 282 4488
	 
	 	Telephone: (212) 282-4434	 	Telephone: (212) 282 4434
	 
	 	Email: wayne.gray@mizuhocbus.com	 	Email wayne.gray@mizuhocbus.com
	 
	 	 	 	 
	Natexis Banque
	 	Natexis Banque Populaires	 	Natexis Banque Populaires
	Populaires
	 	Houston Representative Office	 	Houston Representative Office
	 
	 	333 Clay Street, Suite 4340	 	333 Clay Street, Suite 4340
	 
	 	Houston, TX 77002	 	Houston, TX 77002
	 
	 	Attn: Tanya McAllister	 	Attn: Tanya McAllister
	 
	 	Associate	 	Associate
	 
	 	Telecopier: (713) 571-6165	 	Telecopier: (713) 571-6165
	 
	 	Telephone: (713) 759-9409	 	Telephone: (713) 759-9409
	 
	 	Email: tanya.mcallister@nyc.nxbp.com	 	Email: tanya.mcallister@nyc.nxbp.com
	 
	 	 	 	 
	Regions Bank
	 	Regions Bank	 	Regions Bank
	 
	 	417 20th Street North	 	999 N Shepherd
	 
	 	Birmingham, AL 35203	 	Houston, TX 77008
	 
	 	Attn: Mark Burr	 	Attn: Amy Arvey Schroeder
	 
	 	Telecopier: (205) 326-7788	 	Telecopier: (713) 867-7439
	 
	 	Telephone: (205) 326-7679	 	Telephone: (713) 868-0162
	 
	 	Email: mark.burr@regions.com	 	Email Amy.schroeder@regions.com
	 
	 	 	 	 
	Royal Bank of Canada
	 	Royal Bank of Canada	 	Royal Bank of Canada
	 
	 	New York Branch	 	Attention: Compton Singh
	 
	 	One Liberty Plaza, 3rd Floor	 	New York Branch
	 
	 	New York, NY 10006-1404	 	One Liberty Plaza, 3rd Floor
	 
	 	Attn: Compton Singh	 	New York, NY 10006-1404
	 
	 	Telecopier: (212) 428-2372	 	Telecopier: (212) 428-2372
	 
	 	Telephone: (212) 428-6332	 	Telephone: (212) 428-6332
	 
	 	 	 	 
	 
	 	 	 	with a copy to:
	 
	 	 	 	 
	 
	 	 	 	Royal Bank of Canada
	 
	 	 	 	Attention: Linda Stephens
	 
	 	 	 	3900 Williams Tower
	 
	 	 	 	2800 Post Oak Blvd.
	 
	 	 	 	Houston, TX 77056
	 
	 	 	 	Telecopier: (713) 403-5624
	 
	 	 	 	Telephone: (713) 403-5669

-5-

 

	 	 	 	 	 
	Name of Bank	 	Domestic and Eurodollar Lending Offices	 	Address for Notices
	The Bank of Tokyo-
	 	The Bank of Tokyo-Mitsubishi UFJ,	 	The Bank of Tokyo-Mitsubishi UFJ,
	Mitsubishi UFJ, Ltd.,
	 	Ltd., Houston Agency	 	Ltd., Houston Agency
	Houston Agency
	 	1100 Louisiana Street, Suite 2800	 	1100 Louisiana Street, Suite 2800
	 
	 	Houston, Texas 77002	 	Houston, Texas 77002
	 
	 	Telecopier: (713) 658-0116	 	Telecopier: (713) 658-0116
	 
	 	Telephone: (713) 655-3869	 	Telephone: (713) 655-3869
	 
	 	Attn: John McIntyre	 	Attn: John McIntyre
	 
	 	 	 	 
	Toronto Dominion
	 	Toronto Dominion (Texas) LLC	 	Toronto Dominion (Texas) LLC
	(Texas) LLC
	 	31 West 52nd Street, 22nd Floor	 	77 King Street West, RTT18
	 
	 	New York, New York, 10019	 	Toronto, Ontario M5K 1A2
	 
	 	 	 	Attn: Hughroy Enniss
	 
	 	 	 	Telecopier: (416) 983-1708
	 
	 	 	 	Telephone: (416) 307-0497
	 
	 	 	 	Email:
	 
	 	 	 	Hughroy.enniss@tdsecurities.com
	 
	 	 	 	 
	WestLB AG, New
	 	WestLB AG, New York Branch	 	WestLB AG, New York Branch
	York Branch
	 	1211 Avenue of the Americas	 	1211 Avenue of the Americas
	 
	 	New York, New York 10036	 	New York, New York 10036
	 
	 	Attn: Rodney Hyman	 	Attn: Rodney Hyman
	 
	 	Telecopier: (212) 302-7946	 	Telecopier: (212) 302-7946
	 
	 	Telephone: (212) 597-1393	 	Telephone: (212) 597-1393
	 
	 	Email: rodney_hyman@westlb.com	 	Email: rodney_hyman@westlb.com
	 
	 	 	 	 
	Wachovia Bank, N.A.
	 	Wachovia Bank, N.A.	 	Wachovia Bank, N.A.
	 
	 	301 South College St.	 	171 17th Street NW
	 
	 	TW-15 NC5562	 	100 Building 3rd Floor GA 4523
	 
	 	Charlotte, NC 28288	 	Atlanta, GA 30363
	 
	 	 	 	Attn: Paul Pritchett
	 
	 	 	 	Telecopier: (404) 214-3751
	 
	 	 	 	Telephone: (404) 214-1433
	 
	 	 	 	Email: Paul.Pritchett@wachovia.com

-6-

 

SCHEDULE II

BORROWERS’ INFORMATION

	 	 	 	 	 
	Name of Borrowers

	 	 	 	Address for Notices
	The Williams Companies, Inc.

	 	 	 	The Williams Companies, Inc.
	 

	 	 	 	One Williams Center, Suite 5000
	 

	 	 	 	Tulsa, Oklahoma 74172
	 

	 	 	 	Attention: Assistant Treasurer
	 

	 	 	 	Telecopier: (918) 573-2065
	 

	 	 	 	Telephone: (918) 573-2148
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	The Williams Companies, Inc.
	 

	 	 	 	One Williams Center, Suite 5000
	 

	 	 	 	Tulsa, Oklahoma 74172
	 

	 	 	 	Attention: Associate General Counsel — Corporate
	 

	 	 	 	Telecopier: (918) 573-4503
	 

	 	 	 	Telephone: (918) 573-2613
	 
	 	 	 	 
	Williams Partners L.P.

	 	 	 	Williams Partners L.P.
	 

	 	 	 	One Williams Center, Suite 5000
	 

	 	 	 	Tulsa, Oklahoma 74172
	 

	 	 	 	Attention: Assistant Treasurer
	 

	 	 	 	Telecopier: (918) 573-2065
	 

	 	 	 	Telephone: (918) 573-2148
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Williams Partners GP LLC
	 

	 	 	 	One Williams Center, Suite 5000
	 

	 	 	 	Tulsa, Oklahoma 74172
	 

	 	 	 	Attention: General Counsel
	 

	 	 	 	Telecopier: (918) 573-4503
	 

	 	 	 	Telephone: (918) 573-2613

 

 

	 	 	 
	Northwest Pipeline Corporation

	 	Northwest Pipeline Corporation
	 

	 	2800 Post Oak Blvd.
	 

	 	Houston, TX 77056
	 

	 	Attention: Vice President Finance
	 

	 	Telecopier: (713) 215-4269
	 

	 	Telephone: (713) 215-2353
	 
	 	 
	 

	 	with copies to:
	 
	 	 
	 

	 	The Williams Companies, Inc.
	 

	 	One Williams Center, Suite 5000
	 

	 	Tulsa, Oklahoma 74172
	 

	 	Attention: Assistant Treasurer
	 

	 	Telecopier: (918) 573-2065
	 

	 	Telephone: (918) 573-2148
	 
	 	 
	 

	 	The Williams Companies, Inc.
	 

	 	One Williams Center, Suite 5000
	 

	 	Tulsa, Oklahoma 74172
	 

	 	Attention: Associate General Counsel — Corporate
	 

	 	Telecopier: (918) 573-4503
	 

	 	Telephone: (918) 573-2613
	 
	 	 
	Transcontinental Gas Pipe Line Corporation

	 	Transcontinental Gas Pipe Line Corporation
	 

	 	2800 Post Oak Blvd.
	 

	 	Houston, TX 77056
	 

	 	Attention: Vice President Finance
	 

	 	Telecopier: (713) 215-4269
	 

	 	Telephone: (713) 215-2353
	 
	 	 
	 

	 	with copies to:
	 
	 	 
	 

	 	The Williams Companies, Inc.
	 

	 	One Williams Center, Suite 5000
	 

	 	Tulsa, Oklahoma 74172
	 

	 	Attention: Assistant Treasurer
	 

	 	Telecopier: (918) 573-2065
	 

	 	Telephone: (918) 573-2148
	 
	 	 
	 

	 	The Williams Companies, Inc.
	 

	 	One Williams Center, Suite 5000
	 

	 	Tulsa, Oklahoma 74172
	 

	 	Attention: Associate General Counsel — Corporate
	 

	 	Telecopier: (918) 573-4503
	 

	 	Telephone: (918) 573-2613

-2-

 

SCHEDULE III

COMMITMENTS

as of May 1, 2006

Part A. Revolving Credit Commitments

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Revolving	 	 	 	 	 	 	 	 	 	 	LC	 
	 	 	Revolving Credit	 	 	Credit	 	 	Revolving Credit	 	 	Revolving Credit	 	 	Participation	 
	 	 	Commitment ($) for	 	 	Commitment ($)	 	 	Commitment ($) for	 	 	Commitment ($)	 	 	Percentage	 
	Banks	 	TWC	 	 	for MLP	 	 	NWP	 	 	for TGPL	 	 	(%)	 
	 
	Citibank, N.A.
	 	$	110,000,000	 	 	$	5,500,000	 	 	$	29,333,336	 	 	$	29,333,336	 	 	 	7.333334	%
	Bank of America, National
Association
	 	$	110,000,000	 	 	$	5,500,000	 	 	$	29,333,332	 	 	$	29,333,332	 	 	 	7.333333	%
	Bank of Nova Scotia
	 	$	110,000,000	 	 	$	5,500,000	 	 	$	29,333,332	 	 	$	29,333,332	 	 	 	7.333333	%
	The Royal Bank of Scotland plc
	 	$	110,000,000	 	 	$	5,500,000	 	 	$	29,333,332	 	 	$	29,333,332	 	 	 	7.333333	%
	JPMorgan Chase Bank, N.A.
	 	$	95,000,000	 	 	$	4,750,000	 	 	$	25,333,332	 	 	$	25,333,332	 	 	 	6.333333	%
	Calyon New York Branch
	 	$	95,000,000	 	 	$	4,750,000	 	 	$	25,333,332	 	 	$	25,333,332	 	 	 	6.333333	%
	Merrill Lynch Capital Corporation
	 	$	95,000,000	 	 	$	4,750,000	 	 	$	25,333,332	 	 	$	25,333,332	 	 	 	6.333333	%
	Wachovia Bank, N.A.
	 	$	95,000,000	 	 	$	4,750,000	 	 	$	25,333,332	 	 	$	25,333,332	 	 	 	6.333333	%
	BNP Paribas
	 	$	95,000,000	 	 	$	4,750,000	 	 	$	25,333,332	 	 	$	25,333,332	 	 	 	6.333333	%
	Lehman Commercial Paper Inc.
	 	$	70,000,000	 	 	$	3,500,000	 	 	$	18,666,668	 	 	$	18,666,668	 	 	 	4.666667	%
	Toronto Dominion (Texas) LLC
	 	$	70,000,000	 	 	$	3,500,000	 	 	$	18,666,668	 	 	$	18,666,668	 	 	 	4.666667	%
	ABN Amro Bank N.V.
	 	$	70,000,000	 	 	$	3,500,000	 	 	$	18,666,668	 	 	$	18,666,668	 	 	 	4.666667	%
	Bayerische Landesbank
	 	$	70,000,000	 	 	$	3,500,000	 	 	$	18,666,668	 	 	$	18,666,668	 	 	 	4.666667	%
	Royal Bank of Canada
	 	$	50,000,000	 	 	$	2,500,000	 	 	$	13,333,332	 	 	$	13,333,332	 	 	 	3.333333	%
	Barclays Bank PLC
	 	$	50,000,000	 	 	$	2,500,000	 	 	$	13,333,332	 	 	$	13,333,332	 	 	 	3.333333	%
	Bank of Oklahoma, NA
	 	$	50,000,000	 	 	$	2,500,000	 	 	$	13,333,332	 	 	$	13,333,332	 	 	 	3.333333	%
	WestLB AG, New York Branch
	 	$	40,000,000	 	 	$	2,000,000	 	 	$	10,666,668	 	 	$	10,666,668	 	 	 	2.666667	%
	Mizuho Corporate Bank, Ltd.
	 	$	40,000,000	 	 	$	2,000,000	 	 	$	10,666,668	 	 	$	10,666,668	 	 	 	2.666667	%
	The Bank of Tokyo-Mitsubishi UFJ,
Ltd., Houston Agency
	 	$	25,000,000	 	 	$	1,250,000	 	 	$	6,666,668	 	 	$	6,666,668	 	 	 	1.666667	%
	Natexis Banque Populaires
	 	$	25,000,000	 	 	$	1,250,000	 	 	$	6,666,668	 	 	$	6,666,668	 	 	 	1.666667	%
	Regions Bank
	 	$	25,000,000	 	 	$	1,250,000	 	 	$	6,666,668	 	 	$	6,666,668	 	 	 	1.666667	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	$	1,500,000,000	 	 	$	75,000,000	 	 	$	400,000,000	 	 	$	400,000,000	 	 	 	100.0000	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Part B. Letter of Credit Commitments

	 	 	 	 	 
	Issuing Bank	 	Letter of Credit Commitment	 
	Citibank, N.A.
	 	$	500,000,000	 
	Bank of America, National association
	 	$	500,000,000	 
	JPMorgan Chase Bank, N.A.
	 	$	500,000,000	 
	 
	 	 	 
	Total
	 	$	1,500,000,000	 
	 
	 	 	 

-2-

 

SCHEDULE IV

Applicable Commitment Fee and Applicable Margins

     Pricing is based upon the lower rating from S&P and Moody’s with respect to the relevant
Borrower’s senior unsecured long-term debt; provided that if a Borrower’s rating is BB- or
higher from S&P and Ba3 or higher from Moody’s and there is a split between the two ratings, the
pricing for such Borrower will be based on (i) if the split is one subgrade, the higher rating and
(ii) if the split is more than one subgrade, the rating level that is one subgrade below the higher
rating. Each Borrower’s pricing is based on its own ratings, except, in the case of MLP, as set
forth in the proviso in the definition of Applicable Margin.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Level I	 	 	Level II	 	 	Level III	 	 	Level IV	 	 	Level V	 	 	Level VI	 	 	Level VII	 
	 	 	BBB-	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	B-/B3 or	 
	 	 	/Baa3 or	 	 		 	 		 	 		 	 		 	 		 	 	Lower or	 
	 	 	Higher	 	 	BB+/Ba1	 	 	BB/Ba2	 	 	BB-/Ba3	 	 	B+/B1	 	 	B/B2	 	 	Unrated	 
	Applicable Commitment Fee Rate:
	 	 	15.0	 	 	 	20.0	 	 	 	25.0	 	 	 	30.0	 	 	 	32.5	 	 	 	37.5	 	 	 	50.0	 
	Applicable
Margin

(for Eurodollar Rate Advances):
	 	 	87.5	 	 	 	100.0	 	 	 	125.0	 	 	 	150.0	 	 	 	175.0	 	 	 	200.0	 	 	 	225.0	 
	Applicable
Margin 

(for Base Rate Advances):
	 	 	0	 	 	 	0	 	 	 	25.0	 	 	 	50.0	 	 	 	75.0	 	 	 	100.0	 	 	 	125.0	 

(Amounts are shown in basis points (1/100%) per annum. For example, 37.5
basis points equals 0.375% per annum)

 

 

SCHEDULE V

Existing Subsidiary Debt

Exploration & Production

	 	 	 	 	 

	7.55% Barrett 2/1/2007
	 	$	31.3 million	 
	 	 	 	 	 
	Midstream
	 	 	 	 
	 	 	 	 	 
	El Furrial-OPIC A Note 9.45% 11/15/2013
	 	$	83 million	 
	El Furrial-OPIC B Note 9.17% 11/15/2013
	 	$	8.9 million	 
	PIGAP-OPIC 6.62% 9/15/2016
	 	$	94.7 million	 
	PIGAP-SACE (Floating Rate) 9/15/2016
	 	$	79.6 million	 
	 	 	 	 	 
	Power
	 	 	 	 
	 	 	 	 	 
	Cap Lease-Telephones 9.29% 1/1/2010
	 	$	2.8 million	 

 

 

SCHEDULE VI

None

 

 

SCHEDULE VII

[Reserved]

 

 

SCHEDULE VIII

Existing Tolling Agreements

of

Williams Power Company, Inc.

(formerly known as Williams Energy Marketing & Trading Company,

formerly known as Williams Energy Services Company)
(“Williams”)

May 1,
2006

     1. Capacity Sale and Tolling Agreement by and among AES Alamitos, L.L.C., AES Huntington
Beach, L.L.C., AES Redondo Beach, L.L.C. and Williams dated May 1, 1998, as amended from time to
time

     2. Fuel Conversion Services, Capacity and Ancillary Services Purchase Agreement by and between
AES Red Oak, L.L.C. and Williams dated September 17, 1999, as amended from time to time

     3. Amended and Restated Power Purchase Agreement by and between AES Ironwood, L.L.C. and
Williams dated February 5, 1999, as amended from time to time

     4. Capacity Sale and Tolling Agreement by and between Kinder Morgan Michigan, LLC and Williams
dated January 12, 2001, as amended from time to time

     5. Capacity Sale and Tolling Agreement by and between CLECO Evangeline, LLC and Williams dated
November 10, 1999, as amended from time to time

     6. Amended and Restated Fuel Conversion Services Agreement by and between Tenaska Alabama
Partners, L.P. and Williams dated September 5, 1999, as amended from time to time

 

 

SCHEDULE IX-1

LIMITED PERMITTED LIENS

	(a)	 	The Lien of taxes, customs duties or other governmental charges or assessments that are not
at the time determined (or, if determined, are not at the time delinquent), or that are
delinquent but the validity of which is being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP, if required by such
principles, have been provided on the books of the relevant entity;
	 
	(b)	 	Liens on deposits placed in the LC Cash Collateral Accounts, provided that such Liens secure
all or part of the Obligations; and
	 
	(c)	 	Other non-consensual, immaterial Liens.

 

 

SCHEDULE IX-2

GENERAL PERMITTED LIENS

	 	(a)	 	Any Lien existing on any property at the time of the acquisition thereof and not
created in contemplation of such acquisition by a Borrower or any of its Subsidiaries,
whether or not assumed by a Borrower or any of its Subsidiaries;
	 
	 	(b)	 	Any Lien existing on any property of a Subsidiary of a Borrower
at the time it becomes a Subsidiary of a Borrower and not created in contemplation thereof and
any Lien existing on any property of any Person at the time such Person is merged or
liquidated into or consolidated with a Borrower or any Subsidiary thereof and not created
in contemplation thereof;
	 
	 	(c)	 	Purchase money and analogous Liens incurred in connection with the acquisition,
development, construction, improvement, repair or replacement of property (including such Liens
securing Debt incurred within 12 months of the date on which such property was
acquired, developed, constructed, improved, repaired or replaced), provided that all
such Liens attach only to the property acquired, developed, constructed, improved, repaired
or replaced and the principal amount of the Debt by such Lien shall not exceed the
gross cost of the property;
	 
	 	(d)	 	Liens on property that is not owned by TWC or any of its Subsidiaries
on the Effective Date and that is subject to any Capital Lease;
	 
	 	(e)	 	Liens on deposits or other security given to secure bids, tenders, trade
contracts, leases, government contracts, or to secure or in lieu of surety and appeal
bonds, performance and return of money bonds, in each case to secure obligations arising in the
ordinary course of business of
	 
	 	 	 	(1)a Borrower or any of its Subsidiaries if neither such Borrower nor such Subsidiary is a
Pipeline Entity or
	 
	 	 	 	(2)a Pipeline Entity, provided that Liens granted by a Pipeline Entity shall
secure only obligations of such Pipeline Entity or a subsidiary thereof, provided further
that, as to each Pipeline Entity, the aggregate amount secured by Liens pursuant to this paragraph
(e)(2) on assets of such Pipeline Entity and its subsidiaries shall not exceed
3.5% of the Consolidated Net Tangible Assets of such Pipeline Entity (such aggregate
amount shall be deemed to include any Refinancing Indebtedness that relates (whether through one or
more refundings, extensions, refinancings or other replacements) to any amount originally secured
pursuant to this paragraph (e)(2));

	 	(f)	 	Liens on deposits or other security given to secure public or statutory
obligations and deposits as security for the payment of taxes, other governmental assessments
or other similar governmental charges, in each case to secure obligations
of a Borrower or any of its Subsidiaries arising in the ordinary course of business;
	 
	 	(g)	 	Liens existing on the date hereof and listed on attachment 1
to this Schedule IX-2;
	 
	 	(h)	 	Liens pursuant to master netting agreements entered into on the
ordinary course of business in connection with hedging obligations, so long as such Liens encumber
only amounts owed under the hedges covered by such master netting agreements;

 

 

	 	(i)	 	Liens in favor of a Borrower or its Subsidiary other than those granted by a
Credit Party or a Pipeline Entity;
	 
	 	(j)	 	Liens securing Debt (“Refinancing Indebtedness”) incurred to refund, extend, refinance
or otherwise replace Debt secured by a Lien permitted hereunder; provided that (i) the
principal amount of such Refinancing Indebtedness does not exceed the principal amount of Debt
so refunded, extended, refinanced or otherwise replaced (plus the amount of penalties,
premiums, fees accrued interest and reasonable expenses and other obligations incurred in
connection therewith) at the time of such refunding, extension, refinancing or
replacement and (ii) the Liens securing the Refinancing Indebtedness are limited to
substantially the same collateral that secured, at the time of such refunding, extension,
refinancing or replacement, the Debt so refunded, extended, refinanced or
replaced;
	 
	 	(k)	 	Liens on cash deposits in the nature of a right of setoff, banker’s lien,
counterclaim or netting of cash amounts owed arising in the ordinary course of
business on deposit accounts;
	 
	 	(l)	 	Liens occurring in, arising from, or associated with Specified Escrow Arrangements;
	 
	 	(m)	 	(1)  Liens securing Non-Recourse Debt of a Non-Recourse Subsidiary on the assets (and the
income and proceeds therefrom) of such Non-Recourse Subsidiary that are not owned by TWC or
any of its Subsidiaries on the Effective Date and that are acquired, developed,
operated and/or constructed with the proceeds of (i) such Non-Recourse Debt
or investments in such Non-Recourse Subsidiary or (ii) Non-Recourse Debt
or investments referred to in clause (i) refinanced in whole or in part by
such Non-Recourse Debt;
	 
	 	 	 	(2)  Liens securing Non-Recourse Debt of a Non-Recourse Subsidiary on
the assets (and the income and proceeds therefrom) of such Non-Recourse Subsidiary that are
owned by TWC or any of its Subsidiaries on the Effective Date (“Existing Assets”) and that are
developed, operated and/or constructed with the proceeds of (i) such Non-Recourse Debt or
investments in such Non-Recourse Subsidiary or (ii) Non-Recourse Debt or
investments referred to in clause (i) refinanced in whole or in part by such
Non-Recourse Debt, provided that the aggregate fair market value (determined as of the Effective
Date) of Existing Assets on which Liens may be granted pursuant to this paragraph (m)(2) (or
on which Liens may be granted to secure any Refinancing Indebtedness that relates
(whether through one or more refundings, extensions, refinancings or other replacements) to any
amount originally secured pursuant to this paragraph (m)(2)) shall not exceed $250 million;
	 
	 	(n)	 	Liens securing International Debt of an International Subsidiary on the assets (and the income
and proceeds therefrom) of such International Subsidiary acquired, developed, operated and/or
constructed with the proceeds of (i) such International Debt or investments in such International
Subsidiary or (ii) International Debt or investments referred to in clause (i)
refinanced in whole or in part by such International Debt;
	 
	 	(o)	 	Liens on the investments held by a Borrower or any of its Subsidiaries in (i) a
joint venture securing Debt and other obligations of such joint venture, or (ii) a
Non-Recourse Subsidiary securing Non-Recourse Debt of such Non-Recourse Subsidiary, or (iii)
an International Subsidiary securing International Debt of such International
Subsidiary;
	 
	 	(p)	 	Any mortgage created or assumed by a Borrower or any of its Subsidiaries on
oil, gas, coal or other mineral or timber property, owned or leased by a Borrower or any
of its Subsidiaries to secure loans for the purposes of developing such properties, including any
interest of the

-2-

 

	 	 	 	character commonly referred to as a “production payment”, provided that neither a
Borrower nor any Subsidiary shall assume or guarantee such loans or otherwise
he liable in respect thereto, provided further that the aggregate fair market value
(determined as of the Effective Date) of assets that are owned by TWC or any of its
Subsidiaries on the Effective Date and on which Liens have been
granted pursuant to this paragraph (p) (or pursuant to paragraph
6) in the case of any Refinancing Indebtedness that relates (whether through
one or more refundings, extensions, refinancings or other replacements) to any amount
originally secured by any such assets pursuant to this paragraph (p))
shall not exceed $150 million;
	 
	 	(q)	 	Liens on cash, short term investments and Letters of Credit securing
obligations of a Borrower or any of its Subsidiaries under currency hedges and interest rate
hedges; and
	 
	 	(r)	 	Liens on assets of a Borrower or any of its Subsidiaries not
permitted by paragraphs (a) through (q) above (including Liens on accounts
receivable and related asset proceeds arising in connection with a receivables financing and
Liens on property subject to any Capital Lease not otherwise permitted by
paragraph (d) or (g)) securing Debt in a principal amount that at the time of
such incurrence, together with (1) all other Debt outstanding at the time of
such incurrence and secured by Liens on assets of such Borrower or any of its Subsidiaries
pursuant to this paragraph (r), (2) all Refinancing Indebtedness secured by
assets of such Borrower or any of its Subsidiaries outstanding at such time that relates
(whether through one or more refundings, extensions, refinancings or other replacements) to
any amount originally secured pursuant to this paragraph (r) and (3) the
aggregate amount of all Attributable Obligations of such Borrower and its Subsidiaries, do
not exceed 3.5% of the Consolidated Net Tangible Assets of such Borrower, provided that no
Liens shall be permitted on accounts receivable (or related asset proceeds) of
any Pipeline Entity. “Consolidated Net Tangible Assets” means, with respect to any Person
at any date of determination, the aggregate amount of total assets included in such Person’s
most recent quarterly or annual consolidated balance sheet prepared in accordance
with GAAP less applicable reserves reflected in such balance sheet,
after deducting the following amounts: (i) all current liabilities reflected in such balance
sheet, and (ii) all goodwill, trademarks, patents, unamortized debt discounts and expenses
and other like intangibles reflected in such balance sheet.

Each of the foregoing paragraphs (a) through (r) shall also be deemed to permit (i)
appropriate Uniform Commercial Code and other similar filings to perfect the Liens permitted by
such paragraph and (ii) Liens on the products and proceeds (including insurance,
condemnation and eminent domain proceeds) of and accessions to, and contract or other rights
(including rights under insurance policies and product warranties) derivative of or relating to,
the property permitted to be encumbered under such paragraph, but subject to the same restrictions
and limitations herein set forth as to Liens on such property (including the requirement that such
Liens on products, proceeds, accessions and rights secure only the specified obligations, and
in the amount, that such property is permitted to secure).

-3-

 

Attachment 1

To Schedule IX-2

Existing Liens

None

-4-

 

SCHEDULE X

Existing Letters of Credit

I. The following letters of credit issued by Bank of America are Existing Letters
of Credit and are deemed to be issued at the request of TWC with Bank of America as the
Issuing Bank:

	 	 	 	 	 	 	 	 	 
	Number	 	Beneficiary	 	Amount	 	 	Date
	07414614
	 	National Union Fire	 	$	11,880,112.00	 	 	6/24/04
	07414637
	 	International Busine	 	$	2,000,000.00	 	 	6/30/04
	07414817
	 	Ace American Insuran	 	$	4,912,262.00	 	 	7/16/04
	07415019
	 	National Union Fire	 	$	760,000.00	 	 	8/23/04
	074 15057
	 	Kern River Gas Trans	 	$	21,026,017.00	 	 	8/25/04
	07415150
	 	Safeco Insurance Com	 	$	33,000,000.00	 	 	9/14/04
	07412336
	 	PDVSA Petroleo Y Gas	 	$	28,000,000.00	 	 	09/22/03
	03073076
	 	Dynegy Marketing and	 	$	1.00	 	 	1/27/05
	03073243
	 	Duke Energy Trading	 	$	1.00	 	 	2/04/05
	03074520
	 	BP Corporation North	 	$	1.00	 	 	4/12/05
	03077988
	 	New York Mercantile	 	$	1.00	 	 	10/18/05
	03081214
	 	Citibank, N.A.	 	$	28,000,000.00	 	 	3/29/06
	03081733
	 	Barclays Bank PLC	 	$	44,100,000.00	 	 	4/21/06
	03081779
	 	Southern Union Gas E	 	$	7,000,000.00	 	 	4/25/06
	03081781
	 	NJR Energy Services	 	$	10,500,000.00	 	 	4/25/06
	3081734
	 	Constellation Energy Commodities	 	$	24,300,000.00	 	 	04/26/06
	3081806
	 	J. Aron and Company	 	$	5,000,000.00	 	 	04/27/06
	3081807
	 	Mieco Inc.	 	$	11,000,000.00	 	 	04/27/06
	3081835
	 	Marubeni Offshore Production	 	$	3,300,000.00	 	 	04/27/06

II. The following letters of credit issued by Citibank, N.A. are Existing
Letters of Credit and are deemed to be issued at the request of TWC with Citibank, N.A.
as the Issuing Bank :

	 	 	 	 	 	 	 	 	 
	Number	 	Beneficiary	 	Amount	 	 	Date
	61643501
	 	J. Aron	 	$	1.00	 	 	7/25/05
	61646762
	 	Pioneer Natural Resources	 	$	1.00	 	 	12/20/05

 

 

SCHEDULE XI

Sale Leaseback Excluded Property

	1.	 	The “Tower” at One Williams Center; Tulsa, Oklahoma 74172

	2.	 	The “Williams Resource Center” at Two East First Street; Tulsa, Oklahoma 74172

 

 

SCHEDULE XII

Existing Financing Transactions

     1. The February 1, 1999 prepaid forward sale of gas to Meac with a prepayment
amount of $119,869,799 and a remaining balance at March 31, 2006 of approximately $43.5 million.

     2. The December 1, 1998 prepaid forward sale of gas to FGU with a
prepayment amount of $102,613,463 and a remaining balance at March 31, 2006 of approximately
$35.9 million.

 

 

EXHIBIT A

to

Credit Agreement

OPINION OF JAMES J. BENDER, ESQ.

GENERAL COUNSEL OF TWC

-2-

 

			
	James J. Bender 

Senior Vice President and 

General Counsel 

918/573-8705

918/573-5942 fax 

jim.bender@williams.com
	 	One Williams Center

Tulsa, Oklahoma 74172

May ____, 2006

To: Citibank, N.A., as Agent

2 Penns Way, Suite 200

New Castle, Delaware 19720

And

The financial institutions (collectively, the “Banks”)

 parties to the Credit Agreement referred to
below and 

as listed on Schedule A hereto.

	Re: The Williams Companies, Inc. 

Ladies and Gentlemen:

     I am the General Counsel of The Williams Companies, Inc., a Delaware corporation (the “Company.”
This opinion is delivered to you pursuant to Section 3.1(e)(i) of the Credit Agreement, dated as of
May     , 2006 (the “Credit Agreement”), by and among the Company, Northwest Pipeline
Corporation, a Delaware corporation (“NWP”), Transcontinental Gas Pipe Line Corporation, a
Delaware corporation (“TGPL”), Williams Partners L.P., a Delaware limited partnership
(“MLP”), the banks, financial institutions and other institutional lenders listed on the
signature pages thereto as Banks, Citibank, N.A. (“Citibank”), Bank of America, N.A.
(“BofA”) and JPMorgan Chase Bank, N.A. (“JPMorgan”), as Issuing Banks, and
Citibank, N.A., as Agent. (The Company, together with Williams Gas Pipeline Company, LLC, a
Delaware limited liability company, NWP, TGPL and MLP, are referred to herein as the “Credit
Parties”). Unless otherwise defined herein, capitalized terms used herein shall have the
respective meanings set forth in the Credit Agreement.

     In connection with the opinions expressed herein, I, or attorneys reporting to me, have examined
and relied upon copies of the following documents:

(a) the Credit Agreement;

(b) the TWC Guaranty;

(c) the Pipeline Holdco Guaranty;

-3-

 

	 	(d)	 	a Certificate of the Secretary of State of the State of the jurisdiction of formation of each
Credit Party dated as of a recent date attesting to the continued corporate or limited partnership
existence and good standing of each of the Credit Parties in that State;

	 
	 	(e)	 	the Certificate of Incorporation or Formation and By-Laws, or Operating Agreement, as the case
may be, of each of the Credit Parties, and all
amendments thereto;

	 
	 	(f)	 	such other documents as I have deemed necessary or appropriate as a basis for the opinions set
forth below; and

	 
	 	(g)	 	the Notes executed and delivered on the date hereof.

     The documents listed in clauses (a), (b), (c) and (g) above shall be referred to individually as a
“Transaction Agreement” and collectively as the “Transaction Agreements.”

     In connection with this opinion, I or other attorneys acting under my supervision have (i)
investigated such questions of law, (ii) examined such corporate documents and records of each of
the Credit Parties and certificates of public officials, and (iii) received such information from
officers and representatives of each of the Credit Parties and made such investigations as I or
other attorneys under my supervision have deemed necessary or appropriate for the purposes of this
opinion. As to certain matters of fact material to the opinions expressed herein, I have relied on
the representations made in the Transaction Agreements. I have not, nor have other attorneys under
my supervision, conducted independent investigations or inquiries to determine the existence of
matters, actions, proceedings, items, documents, facts, judgments, decrees, franchises,
certificates, permits, or the like and have made no independent search of the records of any court,
arbitrator, or governmental authority affecting any Person, and no inference as to my knowledge
thereof shall be drawn from the fact of my representation of any party or otherwise.

     In rendering the opinions herein, I have assumed without independent verification the authenticity
of all documents submitted to me as original and the conformity with the authentic originals of all
documents submitted to me as copies.

     Based upon and subject to the foregoing and the other qualifications, limitations, and assumptions
set forth below and upon such other matters as I have deemed appropriate, I am of the opinion that:

	 	1.	 	Each of the Credit Parties is duly organized, validly existing, and in good standing
under the laws of its respective jurisdiction of formation. Each of the Credit
Parties is qualified as a foreign corporation, limited partnership or limited liability
company, as the case may be, and in good standing under the laws of each
jurisdiction where its ownership, lease or operation of property or the conduct of
its business requires such qualification, except to the extent that a failure to so
qualify or be in good standing would not, in the aggregate, (i) result in a material
adverse effect on the performance by any of the Credit Parties of its obligations

-4-

 

	 	 	 	under the Transaction Agreements or (ii) materially adversely affect any right or remedy of any
addressee hereof.
	 
	 	2.	 	The execution, delivery, and performance by each of the Credit Parties of the Transaction
Agreements (a) have been duly authorized by all necessary corporate, limited partnership or limited
liability company action of each of the Credit Parties, (b) are within the corporate, limited
partnership or limited liability company power and authority of each of the Credit Parties, and (c)
do not contravene the certificate of incorporation or formation or the By-Laws or Operating
Agreement, as the case may be, of any Credit Party.
	 
	 	3.	 	The execution, delivery, and performance by each of the Credit Parties of the Transaction
Agreements (a) do not contravene any law, rule, regulation, order, judgment or decree applicable to
any of the Credit Parties, and (b) to my knowledge, do not result in a breach of, or constitute a
default under, any material agreement to which any Credit Party is a party or by which any of the
Credit Parties is bound and will not result in or require the creation or imposition of any Lien
prohibited by the Credit Agreement except that this opinion is not given as to the Scheduled
Agreements as defined and referred to in the opinion of Gibson, Dunn & Crutcher LLP of even date
herewith, and except as would not have a Material Adverse Effect.
	 
	 	4.	 	Each Transaction Agreement has been duly and validly executed and delivered by each of the
Credit Parties that is shown as being a party to such Transaction Agreement.
	 
	 	5.	 	No authorization, consent, approval, license, permission or registration of or with any
governmental authority or, to my knowledge, any other person or entity, which has not been obtained
or is not in full force and effect, is required in connection with the execution, delivery and
performance by each of the Credit Parties of the Transaction Agreements, except to the extent that
a failure to obtain such would not, in the aggregate, (i) result in a material adverse effect on
the performance by any of the Credit Parties of its obligations under the Transaction Agreements or
(ii) materially adversely affect any right or remedy of any addressee hereof.
	 
	 	6.	 	There is no action, suit or proceeding pending or, to the best of my knowledge, threatened
against any of the Credit Parties before any court or arbitrator or any governmental body, agency
or official (a) with respect to the Transaction Agreements, or (b) except as set forth in the
Public Filings, as defined below, or as disclosed in the Transaction Agreements, in which I believe
there is a reasonable possibility of an adverse decision, judgment, decree, injunction, order, or
award of any court or government body that I believe could reasonably be expected to, in the
aggregate, (i) result in a material adverse effect on the performance by any of the Credit Parties
of its obligations under the Transaction Agreements or (ii) materially adversely affect any right
or remedy of any

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addressee hereof. As used in this paragraph, “Public Filings”
means all documents which any of the Credit Parties has filed pursuant to Sections
13, 14, or 15(d) of the Securities Exchange Act of 1934
prior to the date of this opinion.

     The opinions expressed in this letter are subject to the following additional exceptions,
qualifications and limitations:

	 	A.	 	My opinion in paragraph 1 with respect to whether each of the Credit Parties is duly
organized and in good standing is based solely on certificates, dated as
of a recent date from the Secretary of State of the State of the jurisdiction of
formation of such Credit Party, certifying as to such matters.
	 
	 	B.	 	I express no opinion as to the effect on the
opinions herein stated of compliance or non-compliance by any of the Banks, the Issuing
Banks or the Agent with any applicable state, federal, or other laws or
regulations applying only to banks, or the legal or regulatory status of any
Bank or Issuing Bank.
	 
	 	C.	 	Qualification of any statement or opinion herein by the use of the
words “to my knowledge’’ means that during the course of
representation in connection with the transactions contemplated by the Transaction
Agreements, no information has come to the attention of
me or attorneys reporting to me that would give me or such attorneys current actual
knowledge of the existence of facts or matters so qualified. I have not
undertaken any investigation to determine the existence of facts, and no
inference as to my knowledge thereof shall be drawn from the fact of the
representation by me or attorneys reporting to me of any party or otherwise.
	 
	 	D.	 	The opinions herein expressed are limited to the matters expressly set
forth in this opinion letter, and no opinion is implied or may be
inferred beyond the matters expressly so stated.
	 
	 	E.	 	Without limiting the generality of and subject to the paragraph below, in
rendering my opinions herein I have considered only those laws, statutes, rules and
regulations that, in my experience, are customarily applicable to
transactions of the character contemplated by the Transaction Agreements.

     I am admitted to practice law in the State of Minnesota, and,
accordingly, the opinions expressed herein are based upon and limited exclusively to the laws of
such State, the General Corporation, Limited Partnership and Limited Liability Company Law of the
State of Delaware and the laws of the United States of America insofar as any of such laws are
applicable. I render no opinion with respect to any other laws.

     This opinion may not be used or relied upon by, quoted, transmitted to, filed,
published or communicated to any person or entity other than the addressees hereof for any purpose
whatsoever without my prior written consent in each instance. Copies of this opinion
may not be provided to any person other than the addressees, provided that the addressees may
provide

-6-

 

copies of this opinion (i) to bank examiners and other regulatory authorities
should they so request, (ii) to the independent auditors and attorneys of
the addressees, (iii) pursuant to order or legal process of any court or governmental
agency, (iv) in connection with any legal action to which any addressee is a party arising out of
the transactions contemplated by the Transaction Agreements, (v) to the proposed permitted assignee
of or participant in the interest of any addressee under the Transaction Agreements, or
(vi) to any person to the extent required by law. This opinion speaks as of its date,
and I undertake no, and hereby expressly disclaim any, duty to advise
you or any other person entitled to rely hereon as to any changes of fact
or law coming to my attention after the date hereof.

Remainder of page intentionally left blank

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	 	Very truly yours,

James J. Bender, Esq.

 	 

-8-

 

	 	 	 	 	 

SCHEDULE A

Bank of America, N.A., as Syndication Agent and
Issuing Bank

Citibank, N.A., as Issuing Bank

JPMorgan Chase Bank, N.A., as Issuing Bank

Citigroup Global Markets Inc. and Banc of America Securities LLC, as Joint Lead
Arrangers and Co-Book Runners

All Banks and Issuing Banks, in each case, from time to time parties to
the Credit Agreement

 

 

EXHIBIT B

to

Credit Agreement

OPINION OF GIBSON, DUNN & CRUTCHER

-2-

 

May 1, 2006

	 
			
	(212) 351-4000
	 	97394-00041

(212) 351-4035

To Citibank, N.A., as Agent under the Credit Agreement referred to below,

to the Issuing Banks,

to Bank of America, N.A. as Syndication Agent,

to Citigroup Global Markets Inc. and Banc of America Securities LLC, as Joint Lead

Arrangers and Co-Book Runners, and

to the Lenders listed on Schedule A hereto

     Re: The Williams Companies, Inc. — Credit Agreement dated as
of May 1, 2006

Ladies and Gentlemen:

          We have acted as counsel to The Williams Companies, Inc., a Delaware corporation (the
“Company”), Northwest Pipeline Corporation, a Delaware corporation and an indirect
subsidiary of the Company (“NWP”), Transcontinental Gas Pipe Line Corporation, a
Delaware corporation and an indirect subsidiary of the Company (“TGPL”), Williams
Partners L.P., a Delaware limited partnership and a subsidiary of the Company (together with the
Company, NWP and TGPL, the “Borrowers”), and Williams Gas Pipeline
Company, LLC, a Delaware limited liability company and a direct subsidiary of
the Company (“Pipeline Holdco”) and the direct parent of NWP and TGPL,
in connection with the preparation of:

     (i) the Credit Agreement dated as of May 1, 2006 (the “Credit
Agreement”) by and among the Borrowers, certain lenders (the
“Lenders”), Citibank, N.A., as agent (the “Administrative
Agent”), and Citibank, N.A., Bank of America, N.A. and JPMorgan Chase Bank, N.A., as
issuing banks (“Issuing Banks”, and together with the Lenders and the
Administrative Agent, the “Lender Parties”);

     (ii) the Notes dated as of May 1, 2006 (the
“Notes”) made by the Borrowers payable to the order of certain Lenders;

-3-

 

     (iii) the Pipeline Holdco Guaranty dated as of May 1, 2006 executed by Pipeline
Holdco; and

     (iv) the Guaranty dated as of May 1, 2006 (the “Company Guaranty”)
executed by Company in substantially the form of Exhibit F to the Credit Agreement.

          Each capitalized term used and not defined herein has the meaning assigned to that term in
the Credit Agreement. The Credit Agreement, the Notes, the Pipeline Holdco Guaranty and the
Company Guaranty are collectively referred to herein as the “Financing Documents.”
The Borrowers and Pipeline Holdco are collectively referred to herein as the
“Obligors.”

            We have assumed without independent investigation that:

	 	a)	 	The signatures on all documents examined by us are genuine, all
individuals executing such documents had all requisite legal capacity and competency
and were duly authorized, the documents submitted to us as originals
are authentic and the documents submitted to us as certified or
reproduction copies conform to the originals;
	 
	 	b)	 	Each party to the Financing Documents is in good standing under the laws of its
jurisdiction of organization and has all requisite power and authority to execute,
deliver and perform its obligations under each of the Financing Documents to which it
is a party, the execution and delivery of such Financing Documents by such party and
performance of its obligations thereunder have been duly authorized by all necessary
corporate or other action and (except as expressly set forth
in paragraph 3) do not violate any law, regulation, order, judgment or
decree applicable to such party, and such Financing Documents have been duly executed
and delivered by each such party;
	 
	 	c)	 	Each Financing Document constitutes a legal, valid and binding obligation of each
party thereto (other than the Obligors), enforceable against it in accordance with its
respective terms, subject to exceptions, qualifications and limitations of the type set
forth herein; and
	 
	 	d)	 	There are no agreements or understandings between or
among any of the parties to the Financing Documents or third parties that would
expand, modify or otherwise affect the terms of the Financing Documents
or the respective rights or obligations of the parties thereunder.

            In rendering this opinion, we have made such inquiries and examined, among other
things, originals or copies, certified or otherwise identified to
our satisfaction, of such records, agreements, certificates, instruments and other
documents as we have considered necessary or appropriate for purposes of
this opinion. As to certain factual matters, we have relied to the extent we deemed appropriate and
without independent investigation upon the representations and warranties of the Obligors in the
Financing Documents, a certificate of an officer of the Obligors a copy of which is

-4-

 

attached
hereto (the “Officer’s Certificate”), or certificates obtained from
public officials and others.

          Based on the foregoing and in reliance thereon, and subject to the assumptions,
exceptions, qualifications and limitations set forth herein, we are of the opinion that:

          1. Each Financing Document constitutes a legal, valid and binding obligation of each
Obligor party thereto, enforceable against it in accordance with its terms.

          2. The execution, delivery and performance by each Obligor of the
Financing Documents to which it is a party do not and will not, based solely upon review of
the documents which are listed on Schedule B hereto (each a “Scheduled Contract”),
result in a material breach of or default under any Scheduled Contract.

          3. The execution, delivery and performance by any Obligor of
the
Financing Documents to which it is a party do not and will not violate, or require
any filing with or approval of any governmental authority or regulatory body of the State of New
York under, any law or regulation of the State of New York applicable to such Obligor that, in
our experience, is generally applicable to transactions in the nature of those
contemplated by the Financing Documents, except for such filings or approvals that, if not made
or obtained, would not have a material adverse effect on the Obligors taken as a
whole or on their ability to perform their obligations under the Financing
Documents and would not expose any Lender Party to liability.

          4. No Obligor is required to register as an
“investment company” within the meaning of the Investment Company Act of 1940,
as amended.

          5. The execution and delivery by the Borrowers of the Credit Agreement and the performance of
their obligations thereunder do not result in a breach or violation of Regulation U or
X of the Board of Governors of the Federal Reserve System.

     The foregoing opinions are subject to the following exceptions, qualifications and
limitations:

          A. We render no opinion herein as to matters involving the laws of any
jurisdiction other than the State of New York and the United States of America. This opinion is
limited to the effect of the present state of the laws of the State of New York and the United
States of America and the facts as they currently exist. We assume no obligation to revise or
supplement this opinion in the event of future changes in such laws or the
interpretations thereof or such facts. We express no opinion regarding the
Securities Act of 1933, as amended, or, except as expressly set forth in
paragraph 4, any other federal or state securities laws or regulations.

          B. Our opinion set forth in paragraph 1 is subject to (i) the
effect of any bankruptcy, insolvency, reorganization, moratorium, arrangement or similar laws
affecting the rights and remedies of creditors generally (including, without limitation, the

-5-

 

effect of statutory or other laws regarding fraudulent transfers or
distributions by corporations to stockholders or preferential transfers) and
(ii) general principles of equity, including without limitation concepts of
materiality, reasonableness, good faith and fair dealing and the possible unavailability
of specific performance, injunctive relief or other equitable remedies
regardless of whether enforceability is considered in a proceeding in equity or
at law.

          C. We express no opinion regarding the effectiveness of (i) any waiver (whether or
not stated as such) under the Financing Documents of, or any
consent thereunder relating to, unknown future rights or the rights of
any party thereto existing, or duties owing to it, as a matter of law; (ii)
any waiver (whether or not stated as such) contained in the Financing
Documents of rights of any party, or duties owing to it, that is broadly or
vaguely stated or does not describe the right or duty purportedly
waived with reasonable specificity; (iii) provisions relating to indemnification, exculpation
or contribution, to the extent such provisions may be held unenforceable as
contrary to public policy or federal or state securities laws
or due to the gross negligence or willful misconduct of the indemnified
party; (iv) any provision in any Financing Document waiving the right to object to venue in any
court; (v) any agreement to submit to the jurisdiction of any Federal Court; (vi) any waiver of the
right to jury trial; (vii) any provision purporting to establish evidentiary standards; (viii) any
provision to the effect that every right or remedy is cumulative and may be exercised
in addition to any other right or remedy or that the election of some
particular remedy does not preclude recourse to one or more others; or
(ix) the availability of damages or other remedies not specified
in the Financing Documents in respect of breach of any covenants (other than covenants relating to
the payment of principal, interest, indemnities, expenses, reimbursement obligations and fees).

          D. We express no opinion as to the effect of any facts or
circumstances that would constitute a defense to the obligation of a surety, unless such
defense has been waived effectively by a Credit Party, or on the enforceability
of the Financing Documents against, or on the ability of a
secured party to realize upon collateral security pledged or granted by, any
“surety” (which could include a hypothecator of property to secure obligations owed to another
person).

          E. We express no opinion with respect to the attachment, perfection,
enforceability or priority of any security interest in any
collateral.

          F. For purposes of our opinion in paragraph 5, we have assumed
without independent investigation that the representation and warranty of the Company set forth in
Section 4.1(h) of the Credit Agreement is and will be true and correct at all
relevant times. Our opinion in paragraph 5 is subject to (and we express no opinion in
respect of) any requirement applicable to the Administrative Agent or any
Lender to obtain in good faith a Form FR U-1 signed by the Obligors. We express no
opinion with respect to Regulation T of the Board of Governors of the Federal Reserve
System.

          G. We express no opinion as to the applicability to, or
the effect of noncompliance by, any Lender Party with any state
or federal laws applicable to the

-6-

 

transactions contemplated by the Financing Documents because of the nature of the
business of such Lender Party.

          H. In rendering our opinions expressed in paragraph 2 insofar
as they require interpretation of Scheduled Contracts, we express no opinion with
respect to the compliance by any Obligor with, or any financial calculations or data in respect of,
financial covenants or tests included in any Scheduled Contract. We call to your
attention that the Company and its Subsidiaries are subject to covenants under certain Scheduled
Contracts limiting the incurrence of indebtedness or limiting indebtedness secured by liens and
mortgages and we express no opinion as to whether the future incurrence
of Revolving Credit Advances or unpaid Reimbursement Obligations will result in
defaults under such covenants; any such determination will depend upon facts (including the amount
of other indebtedness and specified financial calculations) existing at the time of incurrence.

          This opinion is rendered to the Lender Parties in connection with the Financing
Documents and may not be relied upon by any person other than the Lender Parties or by the Lender
Parties in any other context. Copies of this opinion may not be provided to any
person other than the Lender Parties; provided that the Lender Parties may provide copies of
this opinion (i) to bank examiners and other regulatory authorities to the extent
required by law or otherwise requested, (ii) to the independent auditors and attorneys of the
Lender Parties, (iii) pursuant to order or legal process of any court or governmental agency, (iv)
in connection with any legal action to which any Lender Party is a party arising out of the
transactions contemplated by the Financing Documents, or (v) to the proposed
permitted assignee of or participant in the interest of any Lender Party under the
Financing Documents (and permitted assignees who become Banks may rely on
this opinion as if it were addressed to them (provided that such delivery shall
not constitute a re-issue or reaffirmation of this opinion as of any date after the
date hereof)). This opinion may not be quoted without the prior written consent of
this Firm.

Very truly yours,               

-7-

 

SCHEDULE A

CITIBANK, N.A.

BANK OF AMERICA NATIONAL ASSOCIATION

JPMORGAN CHASE BANK, N.A.

THE BANK OF NOVA SCOTIA

THE ROYAL BANK OF SCOTLAND PLC

ABN AMRO BANK N.V.

BANK OF OKLAHOMA, NA

BARCLAYS BANK PLC

BAYERISCHE LANDESBANK

BNP PARIBAS

CALYON NEW YORK BRANCH

LEHMAN COMMERCIAL PAPER INC.

MERRILL LYNCH CAPITAL CORPORATION

MIZUHO CORPORATE BANK, LTD.

NATEXIS BANQUE POPULAIRES

REGIONS BANK

ROYAL BANK OF CANADA

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., HOUSTON AGENCY

TORONTO DOMINION (TEXAS) LLC

WACHOVIA BANK, N.A.

WESTLB AG, NEW YORK BRANCH

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SCHEDULE B

SCHEDULED CONTRACTS

	1.	 	Senior Debt Indenture by and among The Williams Companies, Inc. and JPMorgan Chase Bank
(as successor to Bank One Trust Company (formerly known as The
First National Bank of Chicago)), as Trustee, dated as of November 10,
1997, as supplemented by the Fourth Supplemental Indenture dated as of
January 17, 2001 relating to debt issued under such Indenture in the aggregate principal
amount of $400,000,000, the Fifth Supplemental Indenture dated as of January 17, 2001 relating
to debt issued under such Indenture in the aggregate principal amount of $700,000,000,
the Sixth Supplemental Indenture, dated as of January 14, 2002 relating to debt issued
under such Indenture in the aggregate principal amount of $1,000,000,000, the
Seventh Supplemental Indenture, dated as of March 19, 2002 relating to debt
issued under such Indenture in the aggregate principal amount of $650,000,000 (for the 8.125%
Notes) and $850,000,000 (for the 8.75% Notes), the Eighth Supplemental Indenture,
dated as of June 3, 2002 relating to debt issued under such Indenture in the
aggregate principal amount of $1,400,000,000, the Ninth Supplemental Indenture, dated as
of June 10, 2003 relating to debt issued under such Indenture in
the aggregate principal amount of $800,000,000 and the Tenth Supplemental
Indenture, dated as of August 17, 2004, an amendment to the Ninth Supplemental Indenture.

	2.	 	Senior Indenture, by and among The Williams Companies, Inc., (formerly known as Williams
Holdings of Delaware, Inc.) and Citibank, N.A., Trustee, dated as of February
1, 1996, as amended by the First Supplemental Indenture, dated as of
July 31, 1999, by and among Williams Holdings of Delaware,
Inc., The Williams Companies, Inc. and Citibank, N.A.

	3.	 	Subordinated Indenture among The Williams Companies, Inc. and JPMorgan Chase Bank as
Trustee, dated as of May 28, 2003 relating to debt issued under such
Indenture in the aggregate principal amount of $300,000,000.

	4.	 	Senior Indenture by and among The Williams Companies, Inc. (successor to
MAPCO Inc.) and Bank One Trust Company, N.A. (formerly known as The First
National Bank of Chicago), Trustee, dated as of February 25, 1997, and
supplemented by Supplemental Indenture No. 1 dated as of March 5, 1997 in the aggregate
principal amount of $100,000,000 (for the 7.25% Notes), Supplemental Indenture No. 2 dated
as of March 5, 1997 in the aggregate principal amount of $100,000,000
(for the 7.70% Debentures), the Third Supplemental Indenture dated as of
March 31, 1998, and the Fourth Supplemental Indenture dated as of July 31,
1999.

	5.	 	Senior Indenture by and among Transcontinental Gas Pipe Line Corporation and
Citibank, N.A., Trustee, dated as of January 16, 1998.

	6.	 	Senior Indenture by and among Transcontinental Gas Pipe Line Corporation
and Citibank N.A., Trustee, dated as of August 27, 2001 in the aggregate principal
amount

-9-

 

of $300,000,000 (for Series A Securities) and Series B securities for original issue,
pursuant to any Exchange Offer or Private Exchange, for a like
principal amount of Series A securities.

	7.	 	Senior Indenture by and among Northwest Pipeline Corporation and JPMorgan Chase
Bank (formerly known as Chemical Bank), Trustee, dated as of
November 30, 1995.
	 
	8.	 	Senior Indenture by and among Northwest Pipeline Corporation and JPMorgan Chase
Bank (formerly known as The Chase Manhattan Bank), Trustee, dated as
of December 8, 1997.
	 
	9.	 	Senior Indenture by and among Transcontinental Gas Pipe Line Corporation and
Citibank N.A., Trustee, dated as of July 3, 2002 in the aggregate
principal amount of $325,000,000 (for Series A Securities) and Series B
Securities for original issue, pursuant to any Exchange Offer or Private
Exchange, for a like principal amount of Series A Securities.
	 
	10.	 	Senior Indenture by and among Transcontinental Gas Pipe Line
Corporation and Citibank N.A., Trustee, dated as of July 15, 1996.
	 
	11.	 	Indenture among Northwest Pipeline Corporation and JPMorgan Chase Bank
as Trustee, dated as of March 4, 2003 in the aggregate
principal amount of $175,000,000.
	 
	12.	 	Indenture among Barrett Resources Corporation and Bankers Trust Company as
Trustee, dated as of February 1, 1997 in the aggregate principal amount
of $150,000,000 and supplemented by the First Supplemental Indenture dated
2001, the Second Supplemental Indenture dated August 2, 2001, and the Third Supplemental
Indenture dated as of May 20, 2004.
	 
	13.	 	$400,000,000 Credit Agreement, dated as of January 20, 2005, by and among The Williams
Companies, Inc., the banks, financial institutions and other institutional lenders listed on
the signature pages thereto as lenders, and Citibank, N.A. as Agent.
	 
	14.	 	$100,000,000 Credit Agreement, dated as of January 20, 2005, by and among The Williams
Companies, Inc., the banks, financial institutions and other institutional
lenders listed on the signature pages thereto as lenders, and Citibank, N.A. as
Agent.
	 
	15.	 	Senior Indenture by and among Transcontinental Gas Pipe Line Corporation and
JPMorgan Chase Bank, N.A., Trustee, dated as of December 17, 2004.
	 
	16.	 	$500,000,000 Credit Agreement, dated as of September 20, 2005, by and among The Williams
Companies, Inc., the banks, financial institutions and other institutional lenders listed
on the signature pages thereto as lenders, and Citibank, N.A.
as Agent.
	 
	17.	 	$200,000,000 Credit Agreement, dated as of September 20, 2005, by and among
The Williams Companies, Inc., the banks, financial institutions and other institutional
lenders listed on the signature pages thereto as lenders, and
Citibank, N.A. as Agent.

-10-

 

THE WILLIAMS COMPANIES,INC.

OFFICER’S CERTIFICATE

     Rodney J. Sailor does hereby certify to Gibson, Dunn & Crutcher
LLP (“Gibson, Dunn & Crutcher”), in his capacity as
an officer of The Williams Companies, Inc., a Delaware corporation (the
“Company”), Northwest Pipeline Corporation, a Delaware corporation (“NWP”),
Transcontinental Gas Pipe Line Corporation, a Delaware corporation (“TGPL”),
Williams Gas Pipeline Company, LLC, a Delaware limited liability company
(“Pipeline Holdco”) , Williams Partners L.P., a Delaware limited
partnership (“MLP” and collectively with NWP, TGPL and Pipeline Holdco, the
“Company Subsidiaries”), in connection with the Credit Agreement, dated as of
May 1, 2006 (the “Credit Agreement”), by and among the Company,
NWP, TGPL, MLP, the several lenders from time to time parties thereto,
Citibank, N.A., as administrative agent, and Citibank, N.A., Bank of America, N.A. and
JPMorgan Chase Bank, N.A., as issuing banks, as follows:

          1. I am the duly elected and incumbent Treasurer of the Company and am
authorized to execute this Certificate on behalf of the Company and the Company
Subsidiaries.

          2. I recognize and acknowledge that this
Certificate is being furnished to Gibson,
 Dunn & Crutcher in connection with the delivery of its
legal opinion of even date herewith pursuant to Section 3.1(e)(ii) of the Credit
Agreement (the “GDC Opinion”). I further understand that Gibson, Dunn &
Crutcher is relying to a material degree on this Certificate in rendering
that opinion. On behalf of the Company and the Company Subsidiaries, I hereby authorize such
reliance.

          3. I have asked such questions regarding the meaning of any of the provisions of
this Certificate as I have considered necessary.

          4. To the best of my knowledge, there are no agreements or understandings between
or among the Agent, the Banks, the Company and the Company Subsidiaries or third parties that would
expand, modify or otherwise affect the terms of the Financing Documents referred to in the GDC
Opinion or the respective rights or obligations of the parties thereunder.

          5. To the best of my knowledge, neither the Company nor any of the Company Subsidiaries is an “investment company” within the meaning of the Investment Company Act of
1940, as amended, and the rules and regulations promulgated thereunder (the
“ICA”), on the basis that it is primarily engaged, directly or through
a wholly-owned subsidiary or subsidiaries, in a business or businesses other than that
of investing, reinvesting, owning, holding, or trading in securities,
as provided in Section 3(b)(1) of the ICA.

          6. None of the proceeds of the loans and other extensions of
credit made under the Credit Agreement will be used, directly or indirectly, to make loans
to any person that will be secured by margin stock or will have the benefit of any arrangement
restricting the disposition or pledge of margin stock.

 

 

          7. There exists no Debt owed by Pipeline Holdco or the Company to (i)
Williams Production Holdings LLC, Williams Production RMT Company or any of
their subsidiaries, (ii) NWP or any of its subsidiaries or
(iii) TGPL or any of its subsidiaries.

          8. Schedule B to the GDC Opinion lists all material
indentures, material credit agreements and other material borrowing agreements to which any Credit
Party is a party.

     Capitalized terms used herein and not defined herein have the meanings given to
such terms in the Credit Agreement. A copy of this Certificate
executed and delivered by facsimile transmission shall be valid for all purposes.

[Remainder of this page intentionally left blank.]

-2-

 

     IN WITNESS WHEREOF, I have executed this Certificate as of                     , 2006.

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Name:  	Rodney J. Sailor 	 
	 	 	 

-3-

 

	 	 	 	 	 

EXHIBIT C

TRANSFER AGREEMENT

Dated                     , 20___

     Reference is made to the Credit Agreement, dated as of May 1, 2006
(such Credit Agreement, as amended or otherwise modified from time to time, being herein
referred to as the “Credit Agreement”), among The Williams Companies, Inc., Williams Partners L.P.,
Northwest Pipeline Corporation, and Transcontinental Gas Pipe Line Corporation, as Borrowers,
Citibank, N.A., as Agent, and the Banks and Issuing Banks parties thereto. Capitalized terms used
herein that are defined in the Credit Agreement and not defined herein are used
herein as therein defined.

                                             
(the “Assignor”) and                                         
(the “Assignee”) agree as follows:

     1. The Assignor hereby sells and assigns to the Assignee, without recourse, and the Assignee hereby purchases and assumes from the Assignor, an interest in and to all
of the Assignor’s rights and obligations as a Bank under the Credit Agreement and the other Credit
Documents (other than, if the Pipeline Holdco Release Date has occurred, the Pipeline Holdco
Guaranty) executed in connection therewith as of the date hereof equal to the
percentage interest specified on Schedule 1 hereto of all outstanding rights and obligations under
the Credit Agreement. After giving effect to such sale and assignment, the Assignee’s and
Assignor’s respective Revolving Credit Commitments, respective amounts of the Advances owing to the
Assignor and Assignee and respective LC Participation Percentages will be as set forth
in Schedule 1.

     2. The Assignor (i) represents and warrants that it is the legal and beneficial
owner of the interest being assigned by it hereunder and that such interest is free and clear of
any adverse claim; (ii) makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations (whether written or
oral) made in or in connection with the Credit Agreement, the other Credit Documents or
other instrument or document furnished pursuant thereto or in connection
therewith, the perfection, priority, existence, sufficiency or value of any collateral,
other security, guaranty or insurance or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement, any of the other Credit
Documents or any other instrument or document furnished pursuant thereto or in connection
therewith; and (iii) makes no representation or warranty and assumes no responsibility
with respect to the financial condition of the Borrowers or any other
Person or the performance or observance by the Borrowers or any other
Person of any of their respective obligations under the Credit Agreement, the other Credit
Documents or any other instrument or document furnished pursuant thereto or in
connection therewith [; and (iv) attaches the Notes held by the Assignor and requests
that the Agent exchange such Notes for new Notes payable to the order of the Assignee in amounts
equal to the respective Revolving Credit Commitments of the Assignee after giving effect to this
Transfer Agreement or new Notes payable to the order of the Assignee in an amount equal to the
respective Revolving Credit Commitments of the Assignee after giving effect to this Transfer
Agreement and the Assignor in an amount equal to the respective Revolving Credit Commitments
retained by the Assignor under the Credit Agreement, respectively, as specified on
Schedule 1 hereto].

     3. The Assignee (i) confirms that it has received a copy of the Credit Agreement, together
with copies of such financial statements and such other documents and information as it has deemed
appropriate to make its own credit analysis and its own decision to enter into this Transfer
Agreement; (ii) agrees that it will, independently and without reliance upon the Agent, any Issuing
Bank, the Assignor or any other Bank and based on such financial statements and such other
documents and information as it

 

 

shall deem appropriate at the time, continue to make its own credit analysis and
its own decisions in taking or not taking action under the Credit Agreement, any other
Credit Document, or any other instrument or document; (iii) confirms that it is an Eligible
Assignee; (iv) appoints and authorizes the Agent to act as Agent on its behalf and to
exercise such powers and discretion under the Credit Documents or any other document
executed in connection therewith as are delegated to the Agent by the terms thereof,
together with such powers and discretion as are reasonably incidental thereto; (v) agrees that it
will perform in accordance with their terms all of the obligations which by the terms
of the Credit Documents are required to be performed by it as a Bank; and (vi) specifies as its
Domestic Lending Office (and address for notices) and Eurodollar Lending Office the offices set
forth beneath its name on the signature pages hereof.

     4. Following the execution of this Transfer Agreement by the Issuing Banks, the
Assignor, the Assignee and, if required, by TWC, this Transfer Agreement will be delivered to the
Agent for acceptance and recording by the Agent. The effective date of this Transfer Agreement (the
“Effective Date”) shall be the date of acceptance thereof by the Agent, unless otherwise specified
on Schedule 1 hereto.

     5. Upon such acceptance and recording by the Agent, as of the Effective Date, (i) the Assignee shall be a party to the Credit Agreement as a “Bank” and, to the extent provided in this
Transfer Agreement, have the rights and obligations of a Bank thereunder and under the other Credit
Documents (other than, if the Pipeline Holdco Release Date has occurred, the Pipeline Holdco
Guaranty) and (ii) the Assignor shall, to the extent provided in this Transfer
Agreement, relinquish its rights and be released from its obligations under the Credit Agreement
and under the other Credit Documents.

     6. Upon such acceptance and recording by the Agent, from and after the Effective Date, the Agent shall make all payments under the Credit Agreement and the other instruments or
documents furnished pursuant thereto or in connection therewith in respect of the interest assigned
hereby (including all payments of principal, interest and fees with respect thereto) to the
Assignee. The Assignor and Assignee shall make all appropriate adjustments in payments under the
Credit Agreement and the other instruments or documents furnished pursuant thereto
or in connection therewith for periods prior to the Effective Date directly between
themselves.

     7. This Transfer Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

     8. This Transfer Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of Schedule 1 to this Transfer Agreement by telecopier shall be
as effective as delivery of a manually executed counterpart of this Transfer Agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Transfer Agreement to be executed by
their respective officers thereunto duly authorized, as of the date first above written, such
execution being made on Schedule 1 hereto.

 

 

Schedule 1

to

Transfer Agreement

	 	 	 	 	 

	Section
1.
	 	 	 	 
	Percentage
interest assigned:
                    %
	 	 	 	 
	Section
2.
	 	 	 	 
	Assignee’s Revolving Credit Commitment for TWC before giving effect
to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Assignee’s outstanding principal of Revolving Credit Advances to TWC
before giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Aggregate outstanding principal of Revolving Credit Advances to TWC
assigned to the Assignee under this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Assignee’s Revolving Credit Commitment for TWC after giving effect
to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Assignee’s outstanding principal of Revolving Credit Advances
to TWC after giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Assignor’s remaining Revolving Credit Commitment for TWC after
Giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Assignor’s remaining outstanding principal of Revolving Credit Advances
to TWC after giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	[Principal amount of Note of TWC payable to the Assignee:
	 	$	]	*
	 
	 	 	 	 
	[Principal amount of Note of TWC payable to the Assignor:
	 	$	]	*
	 
	 	 	 	 
	Section 3.
	 	 	 	 
	Assignee’s Revolving Credit Commitment for TGPL before giving
effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Assignee’s outstanding principal of Revolving Credit Advances to TGPL
before giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Aggregate outstanding principal of Revolving Credit Advances to TGPL assigned
to the Assignee under this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Assignee’s Revolving Credit Commitment for TGPL after giving
effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 

 

			
	*	 	This language is required only if the Assignor and/or Assignee have requested Notes.

 

 

	 	 	 	 	 

	Assignee’s outstanding principal of Revolving Credit Advances to TGPL
after giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	Assignor’s remaining Revolving Credit Commitment for TGPL after giving
effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	Assignor’s remaining outstanding principal of Revolving Credit
Advances to TGPL after giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	[Principal amount of Note of TGPL payable to the Assignee:
	 	$	]	*
	 
	 	 	 
	[Principal amount of Note of TGPL payable to the Assignor:
	 	$	]	*
	 
	 	 	 
	Section 4.
	 	 	 	 
	Assignee’s Revolving Credit Commitment for NWP before giving
effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	Assignee’s outstanding principal of Revolving Credit Advances to NWP before giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	Aggregate outstanding principal of Revolving Credit Advances to NWP assigned
to the Assignee under this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	Assignee’s Revolving Credit Commitment for NWP after giving
effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	Assignee’s outstanding principal of Revolving Credit Advances to NWP
after giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	Assignor’s remaining Revolving Credit Commitment for NWP after giving
effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	Assignor’s remaining outstanding principal of Revolving Credit
Advances to NWP after giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	[Principal amount of Note of NWP payable to the Assignee:
	 	$	]	*
	 
	 	 	 
	[Principal amount of Note of NWP payable to the Assignor:
	 	$	]	*
	 
	 	 	 
	Section 5.
	 	 	 	 
	Assignee’s Revolving Credit Commitment for MLP before giving
effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	Assignee’s outstanding principal of Revolving Credit Advances to MLP
before giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 
	Aggregate
outstanding principal of Revolving Credit Advances to MLP assigned to the Assignee under this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 	 

-2-

 

	 	 	 	 	 
	Assignee’s
Revolving Credit Commitment for MLP after giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Assignee’s outstanding principal of Revolving Credit Advances to MLP after giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Assignor’s remaining Revolving Credit Commitment for MLP after giving effect to this Transfer Agreement:
	 	$	 	 
	 
	 	 	 	 
	Assignor’s remaining outstanding principal of Revolving Credit Advances to MLP after giving effect to this Transfer
Agreement:
	 	$	 	 
	 
	 	 	 	 
	[Principal amount of Note of MLP payable to the Assignee:
	 	$		*
	 
	 	 	 	 
	[Principal amount of Note of MLP payable to the Assignor:
	 	$		*
	 
	 	 	 	 
	Section 6.
	 	 	 	 
	 
	 	 	 
	LC Participation Percentage assigned:
	 	 	 	%
	 
	 	 	 
	Assignee’s LC Participation Percentage before giving effect to this Transfer Agreement
	 	 	 	%
	 
	 	 	 
	Assignee’s LC Participation Percentage after giving effect to this Transfer Agreement:
	 	 	 	%
	 
	 	 	 
	Assignor’s remaining LC Participation Percentage after giving effect to this Transfer Agreement
	 	 	 	%
	 
	 	 	 
	Section 7.
	 	 	 	 

Effective
Date:
_______________________,
20         **

	 	 	 	 	 
	 	[NAME OF ASSIGNOR], as Assignor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Dated: 	  	 

 

			
	**	 	 This date should be no earlier than the date five Business Days after the delivery
of this Transfer Agreement to the Agent.

-3-

 

	 	 	 	 	 
	 	[NAME OF ASSIGNEE], as Assignee

	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Dated: 	  	 

	 	 	 	 	 
	 	Domestic Lending Office (and address for notices):

[Address]

 	 

	 	 	 	 	 
	 	Eurodollar Lending Office:

[Address]
 	 

					
	 	

[Approved this ____ day of
______, _______

THE WILLIAMS COMPANIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

					
	 	

Approved this ____ day of
______, _______

[NAME OF ISSUING BANK], as Issuing Bank

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

					
	 	

Approved this ____ day of
______, _______

[Include approval for each Issuing Bank] 

Approved this
____ day of ______, _______

CITIBANK, N.A., as Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-4-

 

	 	 	 	 	 

EXHIBIT D-1

NOTICE OF LETTER OF CREDIT

[Date]

	 	 	 

	Citibank, N.A., as Agent
	 	 
	for the Banks parties to the Credit
	 	 
	Agreement referred to below
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

Attention: Williams Account Officer

Ladies and Gentlemen:

     The
undersigned, [The Williams Companies, Inc., Williams Partners L.P., Northwest Pipeline
Corporation or Transcontinental Gas Pipe Line Corporation], (a) refers to that certain Credit
Agreement, dated as of May 1, 2006 (as amended or otherwise modified from time to time, the “Credit
Agreement”; the terms defined therein and not defined herein being used herein as therein defined),
among The Williams Companies, Inc., Williams Partners L.P., Northwest Pipeline Corporation,
Transcontinental Gas Pipe Line Corporation, as Borrowers, Citibank, N.A., as Agent, and the Banks
and Issuing Banks parties thereto;

     {(b)
hereby gives you notice, irrevocably, pursuant to Section 2.2(a)(1) of the Credit Agreement
that the undersigned hereby requests _______________ (the “Issuing Bank”) to [issue/increase the
amount of] an irrevocable Letter of Credit as set forth below in such language as the Issuing Bank
may deem appropriate and (c) in that connection sets forth below the information relating to such
Letter of Credit (the “Letter of Credit”) as required by Section 2.2(a)(1) of the Credit Agreement:

     (i) The
Business Day upon which the Letter of Credit will be [issued/increased] is
________________,
20____ (the “Issuance Date”).

     (ii) The
account party for the Letter of Credit is
                            .

     (iii) Attached
hereto as Exhibit A are the proposed terms of [the Letter of Credit (including the
beneficiary thereof and the nature of the transactions or obligations proposed to be supported
thereby)/the increase in the Letter of Credit identified on Exhibit A hereto]}.*

     {(b) hereby gives you notice, irrevocably, pursuant to Section 2.2(a)(2) of the Credit
Agreement that the undersigned hereby requests that letter of credit
number ____ issued by __________
(the “Issuing Bank”) be added to the Credit Agreement and (c) in that connection sets forth below
the information relating to such letter of credit (the “Added Letter of Credit”) contemplated by
Section 2.2(a)(2) of the Credit Agreement:

     (i) The
Business Day upon which the Added Letter of Credit will be added is ____________ 20__ (the “Addition
Date”).

 

			
	*	 	To be included for Notices of Letters of Credit under Section 2.2(a)(1).

 

     (ii) Attached hereto as Exhibit A is the consent of the Issuing Bank to adding the Added Letter of
Credit to the Credit Agreement.

     (iii) Attached hereto as Exhibit B is a copy of the Added Letter of Credit.

     (iv) The Issuing Bank is specified as the Issuing Bank of the Added Letter of Credit for purposes
of the Credit Documents and all other relevant purposes.}**

     The undersigned hereby certifies that each of the representations and warranties contained in
Section 4.1 of the Credit Agreement and each of the representations and warranties contained in any
other Credit Document (other than, if the Pipeline Holdco Release Date has occurred, the Pipeline
Holdco Guaranty) are correct in all material respects on the date hereof, and will be correct in
all material respects on the [Addition/Issuance] Date, before and after giving effect to the
[addition/issuance/increase] of the [Added Letter of Credit to this Agreement as a] Letter of
Credit, as though made on and as of such date and such [Addition/Issuance] Date (unless such
representation and warranty speaks solely as of a particular date or a particular period, in which
case, as of such date or for such period) and that no event has occurred and is continuing, or
would result from the [addition/issuance/increase] of such
[Added] Letter of Credit, which
constitutes or would constitute a Default or Event of Default
[;provided that if the undersigned
Borrower is MLP, NWP or TGPL, such representations and warranties are made by such Borrower only
with respect to such Borrower and its Subsidiaries and those representations and warranties
referred to above not made by such Borrower are deemed made by TWC].

	 	 	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	[THE WILLIAMS COMPANIES, INC.	 	 
	 	 	WILLIAMS PARTNERS
L.P./NORTHWEST	 	 
	 	 	PIPELINE CORPORATION
/	 	 
	 	 	TRANSCONTINENTAL GAS PIPE LINE	 	 
	 	 	CORPORATION]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 

	cc:	 	Citicorp North America, Inc.
	 	 	333 Clay, Suite 3700
	 	 	Houston, Texas 77002
	 

	 	Ann:
	 	The Williams Companies, Inc.
	 

	 	 	 	Account Officer
	 
	 	 	 	 
	[Issuing Banks]

 

			
	**	 	 To be included for Notices of Letters of Credit under Section 2.2(a)(2).

-2-

 

EXHIBIT D-2

NOTICE
OF REVOLVING CREDIT BORROWING

[Date]

	 	 	 

	Citibank, N.A., as Agent
	 	 
	for the Banks parties to the Credit
	 	 
	Agreement referred to below
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

Attention: The Williams Companies, Inc. Account Officer

Ladies and Gentlemen:

     The undersigned, [The Williams Companies, Inc.,] [Williams Partners L.P.,] [Northwest Pipeline
Corporation,] [Transcontinental Gas Pipe Line Corporation,] (a) refers to the Credit Agreement,
dated as of May 1, 2006 (as it may be amended or otherwise modified from time to time, the “Credit
Agreement”; the terms defined therein and not defined
herein being used herein as therein defined), by and among the undersigned, other Borrowers,
certain Banks and Issuing Banks parties thereto and Citibank, N.A., as Agent; (b) hereby gives you
notice, irrevocably, pursuant to Section 2.3(a) of the Agreement that the undersigned hereby
requests a Revolving Credit Borrowing under the Agreement and (c) in that connection sets forth
below the information relating to such Revolving Credit Borrowing (the “Proposed Revolving Credit
Borrowing”) as required by Section 2.3 (a) of the Credit Agreement:

     (i) The
Business Day of the Proposed Revolving Credit Borrowing is __________, 20____.

     (ii) The Type of Revolving Credit Advances comprising the Proposed Revolving Credit Borrowing is a
[Base Rate Advance] [Eurodollar Rate Advance].

     (iii) The aggregate amount of the Proposed Revolving Credit Borrowing is
$________.

     (iv) [The Interest Period for each Revolving Credit Advance made as part of the Proposed Revolving
Credit Borrowing is __________ months.]

     The undersigned hereby certifies that each of the representations and warranties contained in
Section 4.1 of the Credit Agreement and each of the representations and warranties contained in any
other Credit Document (other than, if the Pipeline Holdco Release Date has occurred, the Pipeline
Holdco Guaranty) are correct in all material respects on the date hereof, and will be correct in
all material respects on the date of the Proposed Revolving Credit Borrowing, before and after
giving effect to the Proposed Revolving Credit Borrowing, as though made on and as of each such
date (unless such representation and warranty speaks solely as of a particular date or a particular
period, in which case, as of such date or for such period) and that no event has occurred and is
continuing, or would result from such Proposed Revolving Credit Borrowing, which constitutes or
would constitute a Default or Event of Default [;provided that if the undersigned Borrower is MLP,
NWP or TGPL, such representations and warranties are made by such Borrower only with respect to
such Borrower and its Subsidiaries and those representations and warranties referred to above not
made by such Borrower are deemed made by TWC].

 

	 	 	 	 	 
	 	Very truly yours,

[BORROWER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 

	cc:	 	Citicorp North America, Inc.
	 	 	333 Clay Street, Suite 3700
	 	 	Houston, Texas 77002
	 

	 	Attn:
	 	The Williams Companies, Inc.
	 

	 	 	 	Account Officer

-2-

 

EXHIBIT E

GUARANTY

     This Guaranty dated as of May 1, 2006, (the “Guaranty”) is by WILLIAMS GAS PIPELINE
COMPANY, LLC, a Delaware limited liability company (“Guarantor”), in favor of Citibank,
N.A., as Agent (as defined in the Credit Agreement referred to below), for its benefit and the
ratable benefit of the other Financial Institutions (as defined below).

INTRODUCTION

     A. The Williams Companies, Inc., a Delaware corporation (“TWC”), Northwest Pipeline
Corporation, a Delaware corporation (“NWP”), Transcontinental Gas Pipe Line Corporation, a
Delaware corporation (“TGPL‘), and Williams Partners L.P., a Delaware limited partnership
(“MLP”), have entered into a Credit Agreement dated as of May 1, 2006 among TWC, TGPL, NWP,
MLP, Citibank, N.A., as Agent, Citibank, N.A., Bank of America, National Association and JPMorgan
Chase Bank, N.A., as Issuing Banks, and the lenders named therein (the “Credit Agreement”).
Bank of America, National Association is named as syndication agent (the “Syndication Agent”) in
connection therewith, and Citigroup Global Markets Inc. and Banc of America Securities LLC are
named as joint lead arrangers and co-book runners (collectively, the “Co-Arrangers”) in
connection therewith. The Agent, Syndication Agent, Issuing Banks, Banks and Co-Arrangers and each
of their respective successors and permitted assigns are collectively referred to herein as the
“Financial Institutions”. Capitalized terms used herein that are defined in the Credit
Agreement and not defined herein are used herein as therein defined.

     B. This Guaranty is a requirement of the Credit Agreement.

     C. TGPL and NWP are Wholly-Owned Subsidiaries of the Guarantor, and the Guarantor will derive
direct or indirect benefit from transactions contemplated by the Credit Documents.

     THEREFORE, in order to induce Financial Institutions to execute the Credit Agreement and to enter
into financing transactions that are covered by the Credit Agreement, the Guarantor hereby agrees
for the benefit of the Financial Institutions as follows:

     Section 1. Guaranty. Guarantor hereby unconditionally and irrevocably guarantees the
punctual payment when due, whether at stated maturity, by acceleration or otherwise, of the
Guaranteed Obligations (defined below). For purposes of this Guaranty, the term “Guaranteed
Obligations” shall mean collectively (a) all obligations under this Guaranty and (b) all
Obligations (as such term is defined by the Credit Agreement) including, without limitation, the
principal of and interest on all Revolving Credit Advances, all reimbursement obligations for draws
on Letters of Credit, and all cash collateralization obligations for Letters of Credit, all accrued
but unpaid interest thereon under the Credit Documents, all premiums, if any, in connection
therewith under the Credit Documents, all fees in connection therewith under the Credit Documents,
and all other reimbursement, indemnification, and other payment obligations in connection therewith
under the Credit Documents;provided that Guaranteed Obligations shall not include any increases in
the principal amount of the obligations under the Credit Documents or Commitments that result from
any amendment, executed by the Majority Banks after the date hereof, of any Credit Document (other
than increases in the principal amount of such obligations that are provided for as of the date of
the execution of this Guaranty but not yet funded). Without limiting the generality of the
foregoing, Guarantor’s liability shall extend to all amounts which constitute part of the
Guaranteed Obligations even if such Guaranteed Obligations are declared unenforceable or not
allowable in a bankruptcy, reorganization, or similar proceeding involving any Borrower or any
guarantor of any portion of the Guaranteed Obligations (collectively such guarantors together with
the Guarantor and the

 

Borrowers are referred to herein as the “Obligors”). This Guaranty is a guarantee of payment, and
Guarantor is primarily liable for the payment of the Guaranteed Obligations. In the event that
Agent wishes to enforce the guarantee contained in this Section 1 hereof against Guarantor, it
shall make written demand for payment from Guarantor, provided that no such demand shall be
required if Guarantor is in bankruptcy, liquidation, or other insolvency proceedings of if doing so
would otherwise violate any stay, order or law, and provided further that failure by Agent to make
such demand shall not affect Guarantor’s obligations under this Guaranty. Guarantor shall make each
payment to be made by it hereunder promptly following demand therefor. Such payments shall be made
in Dollars in same day funds to the Agent at its office at 399 Park Avenue, New York, New York
10043, or at such other office as the Agent may designate in writing.

     Section 2. Limit of Liability. The liabilities and obligations of the Guarantor under the
Credit Documents shall be limited to an aggregate amount equal to the largest amount that would not
render such Guarantor’s obligations hereunder subject to avoidance under Section 548 of the United
States Bankruptcy Code or any comparable provisions of any applicable state law.

     Section 3. Guaranty Absolute. Guarantor guarantees that the Guaranteed Obligations will be
paid strictly in accordance with the Credit Documents, regardless of any law, regulation, or order
now or hereafter in effect in any jurisdiction affecting any of the obligations described in clause
(b) of Section 1 above or the rights of the Agent or any other Financial Institution with respect
thereto. The obligations of Guarantor under this Guaranty are independent of the Guaranteed
Obligations in each and every particular, and a separate action or actions may be brought and
prosecuted against any other Obligor, or any other Person, regardless of whether any other Obligor
or any other Person is joined in any such action or actions. The liability of Guarantor under this
Guaranty shall be absolute and unconditional irrespective of:

          (a) The lack of validity or unenforceability of the Guaranteed Obligations or any Credit Document
(other than this Guaranty against the Guarantor) for any reason whatsoever, including, without
limitation, that the act of creating the Guaranteed Obligations is ultra vires, that the officers
or representatives executing the documents creating the Guaranteed Obligations exceeded their
authority, that the Guaranteed Obligations violate usury or other laws, or that any Obligor has
defenses to the payment of the Guaranteed Obligations, including, without limitation, breach of
warranty, statute of frauds, bankruptcy, statute of limitations, lender liability, or accord and
satisfaction;

          (b) Any change in the time, manner, or place of payment of, or in any term of, any of the
Guaranteed Obligations, any increase (subject to Section 1), reduction, extension, or rearrangement
of the Guaranteed Obligations, any amendment, supplement, or other modification of the Credit
Documents, or any waiver or consent granted under the Credit Documents, including, without
limitation, waivers of the payment and performance of the Guaranteed Obligations;

          (c) Any release, exchange, subordination, waste, or other impairment (including, without
limitation, negligent, willful, unreasonable, or unjustifiable impairment) of any collateral
securing payment of the Guaranteed Obligations; the failure of Agent, any other Financial
Institution or any other Person to exercise diligence or reasonable care in the preservation,
protection, enforcement, sale, or other handling of any collateral; the fact that any Lien or
assignment related to any collateral for the Guaranteed Obligations shall not be properly
perfected, or shall prove to be unenforceable or subordinate to any other Lien or assignment;

          (d) Any full or partial release of any Obligor (other than the full or partial release of the
Guarantor);

-2-

 

          (e) The failure to apply or the manner of applying collateral or payments of the proceeds of
collateral against the Guaranteed Obligations;

          (f) Any change in the existence, organization or structure of any Obligor; any change in the
shareholders, directors, or officers of any Obligor; or the insolvency, bankruptcy, liquidation, or
dissolution of any Obligor or any defense that may arise in connection with or as a result of any
such insolvency, bankruptcy, liquidation or dissolution;

          (g) The failure to give notice of any extension of credit made by any Financial Institution to any
Obligor, notice of acceptance of this Guaranty, notice of any amendment, supplement, or other
modification of any Credit Document, notice of the execution of any document or agreement creating
new Guaranteed Obligations, notice of any default or event of default, however denominated, under
the Credit Documents, notice of intent to demand, notice of demand, notice of presentment for
payment, notice of nonpayment, notice of intent to protest, notice of protest, notice of grace,
notice of dishonor, notice of intent to accelerate, notice of acceleration, notice of bringing of
suit, notice of Agent’s or
any other Financial Institution’s transfer of the Guaranteed Obligations, notice of the financial
condition of or other circumstances regarding any Obligor, or any other notice of any kind relating
to the Guaranteed Obligations;

          (h) Any payment or grant of collateral by any Obligor to Agent or any other Financial Institution
being held to constitute a preference under bankruptcy laws, or for any reason Agent or any other
Financial Institution is required to refund such payment or release such collateral;

          (i) Any other action taken or omitted which affects the Guaranteed Obligations, whether or not such
action or omission prejudices the Guarantor or increases the likelihood that the Guarantor will be
required to pay the Guaranteed Obligations pursuant to the terms hereof;

          (j) The fact that all or any of the Guaranteed Obligations cease to exist by operation of law,
including, without limitation, by way of discharge, limitation or tolling thereof under applicable
bankruptcy laws;

          (k) Any claim or right of set-off that the Guarantor may have; and

          (l) Any other circumstances which might otherwise constitute a defense available to, or a discharge
of any Obligor (other than the termination of this Guaranty in accordance with Section 6.05).

     Section 4. Agent’s Rights and Certain Waivers.

     4.01 Notice and Other Remedies. Guarantor hereby waives promptness, diligence, notice of
acceptance, notice of acceleration, notice of intent to accelerate, and any other notice with
respect to any of the Guaranteed Obligations and this Guaranty and any requirement that Agent or
any other Financial Institution protect, secure, perfect or insure any security interest or other
Lien or any property subject thereto or exhaust any right to take any action against any Obligor or
any other Person or any collateral.

     4.02 Waiver of Subrogation and Contribution; Indemnity. (a) Until such time as the
Guaranteed Obligations are irrevocably paid in full and this Guaranty is terminated in accordance
with Section 6.05, Guarantor hereby irrevocably waives any claim or other rights which it may
acquire against any Obligor that arise from the Guarantor’s Guaranteed Obligations under this
Guaranty or any other Credit Document or the payment thereof, including, without limitation, any
right of subrogation
(including, without limitation, any statutory rights of subrogation under Section 509 of the
Bankruptcy

-3-

 

Code, 11 U.S.C. § 509), reimbursement, exoneration, contribution or indemnification, or any right
to participate in any claim or remedy of Agent or any other Financial Institution against any
Obligor, or any collateral which Agent or any other Financial Institution now has or hereafter
acquires. If any amount shall be paid to Guarantor in violation of the preceding sentence and the
Guaranteed Obligations shall not have been paid in full or this Guaranty shall not have been
terminated in accordance with Section 6.05, such amount shall be held in trust for the benefit of
Agent and the other Financial Institutions, and shall promptly be paid to the Agent for the benefit
of Agent and the other Financial Institutions to be applied to the Guaranteed Obligations, whether
matured or unmatured, as Agent may elect. Guarantor acknowledges that it will receive direct and
indirect benefits from the financing arrangements contemplated by the Credit Documents and that the
waiver set forth in this Section 4.02(a) is knowingly made in contemplation of such benefits.

          (b) Guarantor agrees that, to the extent that any Credit Party makes payments to
Agent or any other Financial Institution, or Agent or any other Financial Institution receives any
proceeds of collateral, and such payments or proceeds or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside, or otherwise required to be
repaid, then to the extent of such repayment the Guaranteed Obligations
shall be reinstated and continued in full  force and effect as of the date such initial payment or
collection of proceeds occurred. GUARANTOR SHALL INDEMNIFY
AGENT, EACH OTHER FINANCIAL INSTITUTION AND EACH AFFILIATE THEREOF AND THEIR RESPECTIVE DIRECTORS,
OFFICERS, EMPLOYEES AND AGENTS FROM, AND DISCHARGE, RELEASE, AND HOLD EACH OF THEM HARMLESS
AGAINST, ANY AND ALL LOSSES, LIABILITIES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS,
DISBURSEMENTS, CLAIMS OR DAMAGES TO WHICH ANY OF THEM MAY BECOME
SUBJECT, INSOFAR AS SUCH LOSSES, LIABILITIES, PENALTIES, ACTIONS,
JUDGMENTS, SUITS, COSTS, DISBURSEMENTS, CLAIMS OR DAMAGES ARISE OUT OF OR RESULT FROM (I) ANY
ACTUAL OR PROPOSED USE BY ANY BORROWER, OR ANY AFFILIATE OF ANY BORROWER, OF THE PROCEEDS OF ANY
REVOLVING CREDIT ADVANCE, (II) ANY BREACH BY GUARANTOR OF ANY PROVISION OF THIS GUARANTY OR ANY
OTHER CREDIT DOCUMENT, (III) ANY INVESTIGATION, LITIGATION OR OTHER PROCEEDING (INCLUDING, WITHOUT
LIMITATION, ANY
THREATENED INVESTIGATION OR PROCEEDING) RELATING TO THE FOREGOING, OR (IV) ANY ENVIRONMENTAL CLAIM
OR REQUIREMENT OF ENVIRONMENTAL LAWS CONCERNING OR RELATING TO THE PRESENTLY OR PREVIOUSLY-OWNED OR
OPERATED PROPERTIES, OR THE OPERATIONS OR BUSINESS, OF GUARANTOR OR ANY OF ITS SUBSIDIARIES, AND
GUARANTOR SHALL REIMBURSE AGENT, EACH OTHER FINANCIAL INSTITUTION, AND EACH AFFILIATE THEREOF AND
THEIR
RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS, UPON DEMAND, FOR ANY REASONABLE OUT-OF-POCKET
EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE  LEGAL FEES) INCURRED IN CONNECTION WITH ANY
SUCH INVESTIGATION, LITIGATION OR OTHER PROCEEDING; AND SUCH INDEMNIFICATION AND REIMBURSEMENT
OBLIGATIONS EXPRESSLY INCLUDE ANY SUCH LOSSES, LIABILITIES, PENALTIES, ACTIONS, JUDGMENTS, SUITS,
COSTS, DISBURSEMENTS, CLAIMS, DAMAGES, OR EXPENSES INCURRED BY REASON OF THE
NEGLIGENCE (OTHER THAN GROSS NEGLIGENCE) OF THE PERSON BEING
INDEMNIFIED, BUT EXCLUDE ANY SUCH LOSSES, LIABILITIES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS,
DISBURSEMENTS, CLAIMS, DAMAGES OR EXPENSES INCURRED BY REASON OF THE GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF THE PERSON TO BE INDEMNIFIED.

     Agent shall have the absolute right to make demands, file suits and claims, engage in other
proceedings and exercise any other rights or remedies available to Agent to collect amounts owed to
it

-4-

 

pursuant to the terms of the indemnities set forth in this Guaranty, and Agent shall not need
the consent of any other Financial Institution or Person whatsoever to do so.

     4.03 Modifications and Amendment to the Credit Documents. As provided in Section 1 above,
certain increases in the principal indebtedness outstanding under the Credit Documents shall not
constitute Guaranteed Obligations. Except as to the foregoing, the parties to the Credit Documents
shall have the right to amend or modify such Credit Documents without affecting the rights provided
for in this Guaranty.

     Section 5. Representations, Warranties and Covenants. The representations, warranties and
covenants that are made by the Borrowers under the Credit Documents and pertain to the Guarantor
are hereby deemed made by the Guarantor and incorporated into this Agreement each as though set
forth in its entirety herein. The Guarantor hereby represents and warrants to the Financial
Institutions that such representations and warranties, to the extent they pertain to the Guarantor,
are correct in all material respects. The Guarantor hereby agrees to comply with all such covenants
that pertain to the Guarantor. The Guarantor hereby further represents and warrants to the
Financial Institutions that the Consolidated balance sheet of the Guarantor and its Subsidiaries as
at December 31, 2005, and the related Consolidated statements of income and cash flows of the
Guarantor and its Subsidiaries for the fiscal year then ended, copies of which have been furnished
to each Bank, fairly present in all material respects the Consolidated financial condition of the
Guarantor and its Subsidiaries as at such date and the Consolidated results of operations of the
Guarantor and its Subsidiaries for the year ended on such date, all in accordance with GAAP. As of
the date hereof only, from December 31, 2005 to the date of this Guaranty, there has been no
material adverse change in the business, condition (financial or otherwise), operations, properties
or prospects of the Guarantor and its Subsidiaries (other than Non-Recourse Subsidiaries and
International Subsidiaries), taken as a whole.

     Section 6. Miscellaneous.

     6.01 Amendments; Waivers. Any amendment or waiver to this Guaranty or any provision hereof
shall only be effective to the extent such amendment or waiver (a) is in writing and (b) is
executed by the Agent, the Guarantor and the other Persons that would be required to execute a like
amendment of the Credit Agreement. Furthermore, all amendments and waivers to this Guaranty will be
subject to the limitations and restrictions applicable to amendments and waivers of the Credit
Agreement.

     6.02 Notices. All notices and other communications to Guarantor shall be delivered to the
address set forth beneath its signature on the signature page hereto, or to such other address as
shall be designated by the Guarantor by written notice to the Agent. All notices and other
communications provided for under this Guaranty shall be in writing (including telecopy
communication), shall be mailed, telecopied, or delivered, and shall, when mailed or telecopied, be
effective when received in the mail or sent by telecopier.

     6.03 No Waiver; Remedies. No failure on the part of Agent or any other Financial
Institution to exercise, and no delay in exercising, any right or remedy hereunder shall operate as
a waiver thereof, nor shall any single or partial exercise of any right or remedy hereunder
preclude any other or further exercise thereof or the exercise of any other right or remedy. The
rights and remedies herein provided are cumulative and not exclusive of any rights and remedies
provided by law.

     6.04 Right of Set-Off. Upon the occurrence and during the continuance of any Event of
Default, if either (a) the Revolving Credit Advances owed by any Borrower have become due and
payable in accordance with the terms of the Credit Agreement or (b) the Majority Banks have made
the request or granted the consent specified by Section 6.1 of the Credit Agreement to authorize
the Agent to declare the

-5-

 

Revolving Credit Advances owed by any Borrower due and payable pursuant to the provisions of
Section 6.1 of the Credit Agreement, each of Agent and the other Financial Institutions is hereby
authorized at any time, to the fullest extent permitted by law, to set off and apply any deposits
(general or special, time or demand, provisional or final) and other indebtedness at any time owing
by Agent or such other Financial Institution, as the case may be, to or for the credit or the
account of the Guarantor against any and all of the obligations of the Guarantor now or hereafter
existing under this Guaranty, irrespective of whether or not Agent or such other Financial
Institution, as the case may be, shall have made any demand under this Guaranty and although such
obligations may be contingent and unmatured. Each Financial Institution agrees promptly to notify
the Guarantor after any such set-off and application made by such Financial Institution,
provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of Agent and the other Financial Institutions under this Section
6.04 are in addition to any other rights and remedies (including, without limitation, other rights
of set-off) which the Agent or other Financial Institutions may have.

     6.05 Continuing Guaranty; Assignments under Credit Documents. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the earlier of (i) the
Pipeline Holdco Release Date and (ii) the indefeasible payment in full and termination of the
Guaranteed Obligations and the termination of all Letters of Credit and all Commitments, (b) be
binding upon Guarantor and its respective successors and assigns, (c) inure to the benefit of, and
be enforceable by, Agent and each of the other Financial Institutions and their respective
successors, transferees and permitted assigns, and (d) not be terminated by Guarantor or any other
Person. Without limiting the generality of the foregoing clause (c), Agent and any other Financial
Institution may assign or otherwise transfer all or any portion of its rights and obligations under
this Guaranty and the assignee shall thereupon become vested with all the benefits in respect
thereof granted to Agent or such Financial Institution herein or otherwise, provided that such
assignment shall be subject to the limitations on assignments set forth in the Credit Agreement.
Upon the earlier of (i) the Pipeline Holdco Release Date and (ii) the indefeasible payment in full
and termination of the Guaranteed Obligations and the termination of all Letters of Credit and all
Commitments, this Guaranty and each guaranty granted hereby shall terminate. Upon any such
termination hereof, Agent will, at Guarantor’s expense, execute and deliver to Guarantor such
documents as Guarantor shall reasonably request and take any other actions reasonably requested to
evidence or effect such termination. This Guaranty is not assignable by Guarantor without the
written consent of Agent.

     6.06 Governing Law; Submission to Jurisdiction; Damages; Suits and Claims.

          (a) This Guaranty shall be governed by, and construed and enforced in accordance with, the laws of
the State of New York, except to the extent provided in Section 6.06(b) hereof and to the extent
that the federal laws of the United States of America may otherwise apply.

          (b) Notwithstanding anything in Section 6.06(a) hereof to the contrary, nothing in this Guaranty
shall be deemed to constitute a waiver of any rights which Agent or any of the Financial
Institutions may have under the National Bank Act or other federal law, including without
limitation the right to charge interest at the rate permitted by the laws of the State where Agent
or any other applicable Financial Institution is located.

          (c) ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER,
OR IN CONNECTION WITH, ANY CREDIT DOCUMENT, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF
AGENT, THE OTHER FINANCIAL INSTITUTIONS OR GUARANTOR IN CONNECTION
HEREWITH OR THEREWITH MAY BE BROUGHT AND MAINTAINED IN THE COURTS
OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE

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SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT
SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY
BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE
SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. GUARANTOR
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL,
POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF
NEW YORK AT THE ADDRESS FOR NOTICES TO GUARANTOR CONTEMPLATED BY
SECTION 6.02 HEREOF. GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT
MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM
THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
TO THE EXTENT THAT GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY
IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS
(WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR
ITS PROPERTY, GUARANTOR HEREBY IRREVOCABLY WAIVES TO THE FULLEST
EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER THIS GUARANTY AND THE CREDIT DOCUMENTS. EACH OF GUARANTOR,
THE AGENT, AND THE OTHER FINANCIAL INSTITUTIONS HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY
DO SO UNDER APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER
IN ANY ACTION OR PROCEEDING REFERRED TO IN THIS SECTION 6.06 ANY
EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES;
PROVIDED THAT NOTHING HEREIN SHALL CONSTITUTE A WAIVER BY THE AGENT
OR ANY OTHER FINANCIAL INSTITUTION OF THE RIGHT TO RECEIVE FULL
PAYMENT OF THE GUARANTEED OBLIGATIONS.

          (d) GUARANTOR, AGENT AND THE OTHER FINANCIAL INSTITUTIONS
HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY
OF THE TRANSACTIONS CONTEMPLATED HEREBY.

          (e) The provisions set forth in this Guaranty shall only be enforceable by the Financial
Institutions and their respective successors and permitted assigns, and no other Person shall have
the right to bring any claim or cause of action based on this Guaranty.

     6.07 Survival. All agreements, statements, representations and warranties made by the
Guarantor herein or in any certificate or other instrument delivered by the Guarantor or on the
behalf of the Guarantor under this Guaranty shall be considered to have been relied upon by Agent
and the other Financial Institutions and shall survive the execution and delivery of this Guaranty
and the other Credit Documents regardless of any investigation made by Agent or any other Financial
Institution or on their behalf.

     6.08 Headings Descriptive. The headings of the various articles, sections and paragraphs of
this Guaranty are for convenience of reference only, do not constitute a part hereof and shall not
affect the meaning or construction of any provision hereof.

     6.09 Severability. In the event any one or more of the provisions contained in this
Guaranty should be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein shall not in any way be
affected or impaired

-7-

 

thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     Guarantor has caused this Guaranty to be duly executed as of the date first above written.

	 	 	 	 	 
	 	WILLIAMS GAS PIPELINE COMPANY, LLC 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	  	Address for Notices:

Williams Gas Pipeline Company, LLC

One Williams Center, Suite 5000

Attn: Treasurer

Tulsa, OK 74172 	 

-9-

 

	 	 	 	 	 

EXHIBIT F

GUARANTY

     This Guaranty dated as of May 1, 2006, (the “Guaranty”) is by THE WILLIAMS COMPANIES, INC.,
a Delaware corporation (“Guarantor” or “TWC”), in favor of Citibank, N.A., as Agent
(as defined in the Credit Agreement referred to below), for its benefit and the ratable benefit of
the other Financial Institutions (as defined below).

INTRODUCTION

     A. TWC, Northwest Pipeline Corporation, a Delaware corporation (“NWP’), Transcontinental
Gas Pipe Line Corporation, a Delaware corporation (“TGPL”), and Williams Partners
L.P., a Delaware limited partnership (“MLP”), have entered into a Credit Agreement dated as of May 1,
2006 among TWC, NWP, TGPL, MLP, Citibank, N.A., as Agent, Citibank, N.A., Bank of America, National
Association and JPMorgan Chase Bank, N.A., as Issuing Banks, and the lenders named therein (the
“Credit Agreement”). Bank of America, National Association is named as syndication
agent (the “Syndication Agent”) in connection therewith and Citigroup Global Markets Inc.
and Banc of America Securities LLC are named as joint lead arrangers and co-book runners
(collectively, the “Co-Arrangers”) in connection therewith. The Agent, Syndication Agent,
Issuing Banks, Banks and Co-Arrangers and each of their respective successors and permitted assigns
are collectively referred to herein as the “Financial Institutions”. Capitalized terms used
herein that are defined in the Credit Agreement and not defined herein are used herein as therein
defined.

     B. This Guaranty is a requirement of the Credit Agreement.

     C. MLP is a Wholly-Owned Subsidiary of the Guarantor, and the Guarantor will derive direct or
indirect benefit from transactions contemplated by the Credit Documents.

     THEREFORE, in order to induce Financial Institutions to execute the Credit Agreement and to enter
into financing transactions that are covered by the Credit Agreement, the Guarantor hereby agrees
for the benefit of the Financial Institutions as follows:

     Section 1. Guaranty. Guarantor hereby unconditionally and irrevocably guarantees the
punctual payment when due, whether at stated maturity, by acceleration or otherwise, of the
Guaranteed Obligations (defined below). For purposes of this Guaranty, the term “Guaranteed
Obligations” shall mean collectively (a) all obligations under this Guaranty and (b) all
Obligations (as such term is defined by the Credit Agreement) of MLP including, without limitation,
the principal of and interest on all Revolving Credit Advances made to MLP, all reimbursement
obligations for draws on Letters of Credit issued at the request of MLP, and all cash
collateralization obligations for such Letters of Credit, all accrued but unpaid interest thereon
under the Credit Documents for which MLP is at any time liable, all premiums, if any, for which MLP
is at any time liable in connection therewith under the Credit Documents, all fees in connection
therewith under the Credit Documents for which MLP is at any time liable, and all other
reimbursement, indemnification, and other payment obligations of MLP in connection therewith under
the Credit Documents; provided that Guaranteed Obligations shall not include any increases
in the principal amount of the obligations under the Credit Documents or Commitments that result
from any amendment, executed by the Majority Banks after the date hereof, of any Credit Document
(other than increases in the principal amount of such obligations that are provided for as of the
date of the execution of this Guaranty but not yet funded). Without limiting the generality of the
foregoing, Guarantor’s liability shall extend to all amounts which constitute part of the
Guaranteed Obligations even if such Guaranteed Obligations are declared unenforceable or not
allowable in a

 

 

bankruptcy, reorganization, or similar proceeding involving MLP or any guarantor of any portion of
the Guaranteed Obligations (collectively such guarantors together with the Guarantor and the
Borrowers are referred to herein as the “Obligors”). This Guaranty is a guarantee of
payment, and Guarantor is primarily liable for the payment of the Guaranteed Obligations. In the
event that Agent wishes to enforce the guarantee contained in this Section 1 hereof against
Guarantor, it shall make written demand for payment from Guarantor, provided that no such
demand shall be required if Guarantor is in bankruptcy, liquidation, or other insolvency
proceedings of if doing so would otherwise violate any stay, order or law, and provided
further that failure by Agent to make such demand shall not affect Guarantor’s obligations under
this Guaranty. Guarantor shall make each payment to be made by it hereunder promptly following
demand therefor. Such payments shall be made in Dollars in same day funds to the Agent at its
office at 399 Park Avenue, New York, New York 10043, or at such other office as the Agent may
designate in writing.

     Section 2. Limit of Liability. The liabilities and obligations of the Guarantor under the
Credit Documents shall be limited to an aggregate amount equal to the largest amount that would not
render such Guarantor’s obligations hereunder subject to avoidance under Section 548 of the United
States Bankruptcy Code or any comparable provisions of any applicable state law.

     Section 3. Guaranty Absolute. Guarantor guarantees that the Guaranteed Obligations will be
paid strictly in accordance with the Credit Documents, regardless of any law, regulation, or order
now or hereafter in effect in any jurisdiction affecting any of the obligations described in clause
(b) of Section 1 above or the rights of the Agent or any other Financial Institution with respect
thereto. The obligations of Guarantor under this Guaranty are independent of the Guaranteed
Obligations in each and every particular, and a separate action or actions may be brought and
prosecuted against any other Obligor, or any other Person, regardless of whether MLP or any other
Person is joined in any such action or actions. The liability of Guarantor under this Guaranty
shall be absolute and unconditional irrespective of:

          (a) The lack of validity or unenforceability of the Guaranteed Obligations or any Credit Document
(other than this Guaranty against the Guarantor) for any reason whatsoever, including, without
limitation, that the act of creating the Guaranteed Obligations is ultra vires, that the officers
or representatives executing the documents creating the Guaranteed Obligations exceeded their
authority, that the Guaranteed Obligations violate usury or other laws, or that any Obligor has
defenses to the payment of the Guaranteed Obligations, including, without limitation, breach of
warranty, statute of frauds, bankruptcy, statute of limitations, lender liability, or accord and
satisfaction;

          (b) Any change in the time, manner, or place of payment of, or in any term of, any of the
Guaranteed Obligations, any increase (subject to Section 1), reduction, extension, or rearrangement
of the Guaranteed Obligations, any amendment, supplement, or other modification of the Credit
Documents, or any waiver or consent granted under the Credit Documents, including, without
limitation, waivers of the payment and performance of the Guaranteed Obligations;

          (c) Any release, exchange, subordination, waste, or other impairment (including, without
limitation, negligent, willful, unreasonable, or unjustifiable impairment) of any collateral
securing payment of the Guaranteed Obligations; the failure of Agent, any other Financial
Institution or any other Person to exercise diligence or reasonable care in the preservation,
protection, enforcement, sale, or other handling of any collateral; the fact that any Lien or
assignment related to any collateral for the Guaranteed Obligations shall not be properly
perfected, or shall prove to be unenforceable or subordinate to any other Lien or assignment;

          (d) Any full or partial release of any Obligor (other than the full or partial release of the
Guarantor);

-2-

 

          (e) The failure to apply or the manner of applying collateral or payments of the proceeds of
collateral against the Guaranteed Obligations;

          (f) Any change in the existence, organization or structure of any Obligor; any change in the
shareholders, directors, or officers of any Obligor; or the insolvency, bankruptcy, liquidation, or
dissolution of any Obligor or any defense that may arise in connection with or as a result of any
such insolvency, bankruptcy, liquidation or dissolution;

          (g) The failure to give notice of any extension of credit made by any Financial Institution to any
Obligor, notice of acceptance of this Guaranty, notice of any amendment, supplement, or other
modification of any Credit Document, notice of the execution of any document or agreement creating
new Guaranteed Obligations, notice of any default or event of default, however denominated, under
the Credit Documents, notice of intent to demand, notice of demand, notice of presentment for
payment, notice of nonpayment, notice of intent to protest, notice of protest, notice of grace,
notice of dishonor, notice of intent to accelerate, notice of acceleration, notice of bringing of
suit, notice of Agent’s or any other Financial Institution’s transfer of the Guaranteed
Obligations, notice of the financial condition of or other circumstances regarding any Obligor, or
any other notice of any kind relating to the Guaranteed Obligations;

          (h) Any payment or grant of collateral by any Obligor to Agent or any other Financial Institution
being held to constitute a preference under bankruptcy laws, or for any reason Agent or any other
Financial Institution is required to refund such payment or release such collateral;

          (i) Any other action taken or omitted which affects the Guaranteed Obligations, whether or not such
action or omission prejudices the Guarantor or increases the likelihood that the Guarantor will be
required to pay the Guaranteed Obligations pursuant to the terms hereof;

          (j) The fact that all or any of the Guaranteed Obligations cease to exist by operation of law,
including, without limitation, by way of discharge, limitation or tolling thereof under applicable
bankruptcy laws;

          (k) Any claim or right of set-off that the Guarantor may have; and

          (l) Any other circumstances which might otherwise constitute a defense available to, or a discharge
of any Obligor (other than the termination of this Guaranty in accordance with Section
6.05).

     Section 4. Agent’s Rights and Certain Waivers.

     4.01 Notice and Other Remedies. Guarantor hereby waives promptness, diligence, notice of
acceptance, notice of acceleration, notice of intent to accelerate, and any other notice with
respect to any of the Guaranteed Obligations and this Guaranty and any requirement that Agent or
any other Financial Institution protect, secure, perfect or insure any security interest or other
Lien or any property subject thereto or exhaust any right to take any action against any Obligor or
any other Person or any collateral.

     4.02 Waiver of Subrogation and Contribution; Indemnity. (a) Until such time as the
Guaranteed Obligations are irrevocably paid in full and this Guaranty is terminated in accordance
with Section 6.05, Guarantor hereby irrevocably waives any claim or other rights which it may acquire
against MLP that arise from the Guarantor’s Guaranteed Obligations under this Guaranty or any other Credit
Document or the payment thereof, including, without limitation, any right of subrogation
(including,
without limitation, any statutory rights of subrogation under Section 509 of the Bankruptcy Code,
11

-3-

 

U.S.C. § 509), reimbursement, exoneration, contribution or indemnification, or any right to
participate in any claim or remedy of Agent or any other Financial Institution against MLP, or any
collateral which Agent or any other Financial Institution now has or hereafter acquires. If any
amount shall be paid to Guarantor in violation of the preceding sentence and the Guaranteed
Obligations shall not have been paid in full or this Guaranty shall not have been terminated in
accordance with Section 6.05, such amount shall be held in trust for the benefit of Agent and the
other Financial Institutions, and shall promptly be paid to the Agent for the benefit of Agent and
the other Financial Institutions to be applied to the Guaranteed Obligations, whether matured or
unmatured, as Agent may elect. Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by the Credit Documents and that the waiver
set forth in this Section 4.02(a) is knowingly made in contemplation of such benefits.

          (b) Guarantor agrees that, to the extent that any Credit Party makes payments related
to the Guaranteed Obligations to Agent or any other Financial Institution, or Agent or any other
Financial Institution receives any proceeds of collateral that are applied against the Guaranteed
Obligations, and
such payments or proceeds or any part thereof are subsequently invalidated, declared to be
fraudulent or
preferential, set aside, or otherwise required to be repaid, then to the extent of such repayment
the
Guaranteed Obligations shall be reinstated and continued in full force and effect as of the date
such initial
payment or collection of proceeds occurred. GUARANTOR SHALL INDEMNIFY AGENT, EACH
OTHER FINANCIAL INSTITUTION AND EACH AFFILIATE THEREOF AND THEIR
RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS FROM, AND
DISCHARGE, RELEASE, AND HOLD EACH OF THEM HARMLESS AGAINST, ANY AND
ALL LOSSES, LIABILITIES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS,
DISBURSEMENTS, CLAIMS OR DAMAGES TO WHICH ANY OF THEM MAY BECOME
SUBJECT, INSOFAR AS SUCH LOSSES, LIABILITIES, PENALTIES, ACTIONS,
JUDGMENTS, SUITS, COSTS, DISBURSEMENTS, CLAIMS OR DAMAGES ARISE OUT OF
OR RESULT FROM (I) ANY ACTUAL OR PROPOSED USE BY MLP, OR ANY AFFILIATE
OF MLP, OF THE PROCEEDS OF ANY REVOLVING CREDIT ADVANCE TO MLP, (II) ANY
BREACH BY GUARANTOR OF ANY PROVISION OF THIS GUARANTY OR ANY OTHER
CREDIT DOCUMENT, (III) ANY INVESTIGATION, LITIGATION OR OTHER
PROCEEDING (INCLUDING, WITHOUT LIMITATION, ANY THREATENED
INVESTIGATION OR PROCEEDING) RELATING TO THE FOREGOING, OR (IV) ANY
ENVIRONMENTAL CLAIM OR REQUIREMENT OF ENVIRONMENTAL LAWS
CONCERNING OR RELATING TO THE PRESENTLY OR PREVIOUSLY-OWNED OR
OPERATED PROPERTIES, OR THE OPERATIONS OR BUSINESS, OF GUARANTOR OR
ANY OF ITS SUBSIDIARIES, AND GUARANTOR SHALL REIMBURSE AGENT, EACH
OTHER FINANCIAL INSTITUTION, AND EACH AFFILIATE THEREOF AND THEIR
RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS, UPON DEMAND, FOR
ANY REASONABLE OUT-OF-POCKET EXPENSES (INCLUDING, WITHOUT LIMITATION,
REASONABLE LEGAL FEES) INCURRED IN CONNECTION WITH ANY SUCH
INVESTIGATION, LITIGATION OR OTHER PROCEEDING; AND SUCH
INDEMNIFICATION AND REIMBURSEMENT OBLIGATIONS EXPRESSLY INCLUDE ANY
SUCH LOSSES, LIABILITIES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS,
DISBURSEMENTS, CLAIMS, DAMAGES, OR EXPENSES INCURRED BY REASON OF THE
NEGLIGENCE (OTHER THAN GROSS NEGLIGENCE) OF THE PERSON BEING
INDEMNIFIED, BUT EXCLUDE ANY SUCH LOSSES, LIABILITIES, PENALTIES, ACTIONS,
JUDGMENTS, SUITS, COSTS, DISBURSEMENTS, CLAIMS, DAMAGES OR EXPENSES
INCURRED BY REASON OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
THE PERSON TO BE INDEMNIFIED.

-4-

 

     Agent shall have the absolute right to make demands, file suits and claims, engage in other
proceedings and exercise any other rights or remedies available to Agent to collect amounts owed to
it pursuant to the terms of the indemnities set forth in this Guaranty, and Agent shall not need
the consent of any other Financial Institution or Person whatsoever to do so.

     4.03 Modifications and Amendment to the Credit Documents. As provided in Section 1 above,
certain increases in the principal indebtedness outstanding under the Credit Documents shall not
constitute Guaranteed Obligations. Except as to the foregoing, the parties to the Credit Documents
shall have the right to amend or modify such Credit Documents without affecting the rights provided
for in this Guaranty.

     Section 5. Representations, Warranties and Covenants. The representations, warranties and
covenants that are made by the Borrowers under the Credit Documents are hereby deemed made and
incorporated into this Agreement each as though set forth in its entirety herein.

     Section 6. Miscellaneous.

     6.01 Amendments: Waivers. Any amendment or waiver to this Guaranty or any provision hereof
shall only be effective to the extent such amendment or waiver (a) is in writing and (b) is
executed by the Agent, the Guarantor and the other Persons that would be required to execute a like
amendment of the Credit Agreement. Furthermore, all amendments and waivers to this Guaranty will be
subject to the limitations and restrictions applicable to amendments and waivers of the Credit
Agreement.

     6.02 Notices. All notices and other communications to Guarantor shall be delivered to the
address set forth beneath its signature on the signature page hereto, or to such other address as
shall be designated by the Guarantor by written notice to the Agent. All notices and other
communications provided for under this Guaranty shall be in writing (including telecopy
communication), shall be mailed, telecopied, or delivered, and shall, when mailed or telecopied, be
effective when received in the mail or sent by telecopier.

     6.03 No Waiver; Remedies. No failure on the part of Agent or any other Financial
Institution to exercise, and no delay in exercising, any right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

     6.04 Right of Set-Off. Upon the occurrence and during the continuance of any Event of
Default, if either (a) the Revolving Credit Advances owed by MLP have become due and payable in
accordance with the terms of the Credit Agreement or (b) the Majority Banks have made the request
or granted the consent specified by Section 6.1 of the Credit Agreement to authorize the Agent to
declare the Revolving Credit Advances owed by MLP due and payable pursuant to the provisions of
Section 6.1 of the Credit Agreement, each of Agent and the other Financial Institutions is hereby
authorized at any time, to the fullest extent permitted by law, to set off and apply any deposits
(general or special, time or demand, provisional or final) and other indebtedness at any time owing
by Agent or such other Financial Institution, as the case may be, to or for the credit or the
account of the Guarantor against any and all of the obligations of the Guarantor now or hereafter
existing under this Guaranty, irrespective of whether or not Agent or such other Financial
Institution, as the case may be, shall have made any demand under this Guaranty and although such
obligations may be contingent and unmatured. Each Financial Institution agrees promptly to notify
the Guarantor after any such set-off and application made by such Financial Institution, provided
that the failure to give such notice shall not affect the validity of such set-off and application.
The rights of Agent and the other Financial Institutions under this Section 6.04 are in

-5-

 

addition to any other rights and remedies (including, without limitation, other rights of
set-off) which the Agent or other Financial Institutions may have.

     6.05 Continuing Guaranty; Assignments under Credit Documents. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the indefeasible payment in
full and termination of the Guaranteed Obligations and the termination of all Letters of Credit and
all Commitments, (b) be binding upon Guarantor and its respective successors and assigns, (c) inure
to the benefit of, and be enforceable by, Agent and each of the other Financial Institutions and
their respective successors, transferees and permitted assigns, and (d) not be terminated by
Guarantor or any other Person. Without limiting the generality of the foregoing clause (c), Agent
and any other Financial Institution may assign or otherwise transfer all or any portion of its
rights and obligations under this Guaranty and the assignee shall thereupon become vested with all
the benefits in respect thereof granted to Agent or such Financial Institution herein or otherwise,
provided that such assignment shall be subject to the limitations on assignments set forth in the
Credit Agreement. Upon the indefeasible payment in full and termination of the Guaranteed
Obligations and the termination of all Letters of Credit and all Commitments, this Guaranty and
each guaranty granted hereby shall terminate. Upon any such termination hereof, Agent will, at
Guarantor’s expense, execute and deliver to Guarantor such documents as Guarantor shall reasonably
request and take any other actions reasonably requested to evidence or effect such termination.
This Guaranty is not assignable by Guarantor without the written consent of Agent. This Guaranty is
also subject to release to the extent provided in Section 2.4 of the Credit Agreement.

     6.06 Governing Law; Submission to Jurisdiction; Damages; Suits and Claims.

          (a) This Guaranty shall be governed by, and construed and enforced in accordance with, the
laws of the State of New York, except to the extent provided in Section 6.06(b) hereof and to the
extent that the federal laws of the United States of America may otherwise apply.

          (b) Notwithstanding anything in Section 6.06(a) hereof to the contrary, nothing in this
Guaranty shall be deemed to constitute a waiver of any rights which Agent or any of the Financial
Institutions may have under the National Bank Act or other federal law, including without
limitation the right to charge interest at the rate permitted by the laws of the State where Agent
or any other applicable Financial Institution is located.

          (c) ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, ANY CREDIT
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR
ACTIONS OF AGENT, THE OTHER FINANCIAL INSTITUTIONS OR GUARANTOR IN CONNECTION HEREWITH OR
THEREWITH MAY BE BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER,
THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT
AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE
FOUND. GUARANTOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES
TO GUARANTOR CONTEMPLATED BY SECTION 6.02 HEREOF. GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY
HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND
ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

-6-

 

TO THE EXTENT THAT GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY
COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, GUARANTOR
HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS
OBLIGATIONS UNDER THIS GUARANTY AND THE CREDIT DOCUMENTS. EACH OF GUARANTOR, THE AGENT, AND THE
OTHER FINANCIAL INSTITUTIONS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY
ACTION OR PROCEEDING REFERRED TO IN THIS SECTION 6.06 ANY EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT OR
CONSEQUENTIAL DAMAGES; PROVIDED THAT NOTHING HEREIN SHALL CONSTITUTE A WAIVER BY THE AGENT OR ANY
OTHER FINANCIAL INSTITUTION OF THE RIGHT TO RECEIVE FULL PAYMENT OF THE GUARANTEED OBLIGATIONS.

          (d) GUARANTOR, AGENT AND THE OTHER FINANCIAL INSTITUTIONS
HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY
OF THE TRANSACTIONS CONTEMPLATED HEREBY.

          (e) The provisions set forth in this Guaranty shall only be enforceable by the Financial
Institutions and their respective successors and permitted assigns, and no other Person shall have
the right to bring any claim or cause of action based on this Guaranty.

     6.07 Survival. All agreements, statements, representations and warranties made by the
Guarantor herein or in any certificate or other instrument delivered by the Guarantor or on the
behalf of the Guarantor under this Guaranty shall be considered to have been relied upon by Agent
and the other Financial Institutions and shall survive the execution and delivery of this Guaranty
and the other Credit Documents regardless of any investigation made by Agent or any other Financial
Institution or on their behalf.

     6.08 Headings Descriptive. The headings of the various articles, sections and
paragraphs of this Guaranty are for convenience of reference only, do not constitute a part hereof
and shall not affect the meaning or construction of any provision hereof.

     6.09 Severability. In the event any one or more of the provisions contained in this
Guaranty should be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein shall not in any way be
affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable provisions.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-7-

 

Guarantor has caused this Guaranty to be duly executed as of the date first above written.

	 	 	 	 	 
	 	THE WILLIAMS COMPANIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 

	 

	 	Address for Notices:
	 

	 	The Williams Companies, Inc.
	 

	 	One Williams Center, Suite 5000
	 

	 	Attn: Assistant Treasurer
	 

	 	Tulsa, OK 74172
	 

	 	Telecopier: (918) 573-2065
	 

	 	Telephone: (918) 573-2148

-8-

 

EXHIBIT G

PROMISSORY NOTE

			
	U.S.$_____________
	 	Dated:
____________, 200_

     FOR VALUE RECEIVED, the undersigned, __________, a Delaware _______ (the “Borrower”), HEREBY
PROMISES TO PAY to the order of_________________________ (the “Bank”) for the account of its
Applicable Lending Office (as defined in the Credit Agreement referred to below) on the date set
forth in clause (i) of the definition of Termination Date (as defined in the Credit Agreement
referred to below) the principal sum of U.S.$___________ or, if less, the aggregate principal
amount of the Revolving Credit Advances owed to the Bank by the Borrower pursuant to the Credit
Agreement, dated as of May 1, 2006 (as amended or otherwise modified from time to time, the “Credit
Agreement”; the terms defined therein and not defined herein being used herein as therein defined),
among The Williams Companies, Inc., Williams Partners L.P., Northwest Pipeline Corporation and
Transcontinental Gas Pipe Line Corporation, as Borrowers, Citibank, N.A., as Agent, and the Banks
and Issuing Banks parties thereto) outstanding on such date set forth in clause (i) of such
definition of Termination Date.

     The Borrower promises to pay interest on the unpaid principal amount of each Revolving Credit
Advance from the date of such Revolving Credit Advance until such principal amount is paid in full,
at such interest rates, and payable at such times, as are specified in the Credit Agreement. Both
principal and interest in respect of each Revolving Credit Advance are payable in lawful money of
the United States of America to the Agent at its address contemplated by Section 2.7(a) of the
Credit Agreement, in same day funds.

     Each Revolving Credit Advance owing to the Bank by the Borrower pursuant to the Credit
Agreement, and all payments made on account of principal thereof, shall be recorded by the Bank
and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this
Promissory Note.

     This Promissory Note is one of the Notes referred to in, and is entitled to the benefits of,
the Credit Agreement. The Credit Agreement, among other things, (i) provides for the making of
Revolving Credit Advances by the Bank to the Borrower from time to time in an aggregate amount not
to exceed at any time outstanding the U.S. Dollar amount first above mentioned, the indebtedness of
the Borrower resulting from each such Revolving Credit Advance being evidenced by this Promissory
Note
and (ii) contains provisions for acceleration of the maturity hereof upon the happening of
certain stated events and also for prepayments on account of principal hereof prior to the maturity
hereof upon the terms and conditions therein specified.

     The Borrower hereby waives presentment, demand, protest, notice of intent to accelerate,
notice of acceleration and any other notice of any kind, except as provided in the Credit
Agreement. No failure to exercise, and no delay in exercising, any rights hereunder on the part of
the holder hereof shall operate as a waiver of such rights.

     This Promissory Note shall be governed by, and construed in accordance with, the laws of the
State of New York.

 

 

	 	 	 	 	 
	 	[BORROWER’S NAME]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

-2-

 

	 	 	 	 	 

REVOLVING CREDIT ADVANCES AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	Amount of	 	 	 	 
	 	 	Revolving Credit	 	Principal Paid	 	Unpaid Principal	 	Notation
	Date	 	Advance	 	or Prepaid	 	Balance	 	Made By
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 

-3-

 

PROMISSORY NOTE

			
	U.S.$95,000,000.00
	 	Dated: May 1, 2006

     FOR VALUE RECEIVED, the undersigned, THE WILLIAMS COMPANIES, INC., a Delaware corporation (the
“Borrower”), HEREBY PROMISES TO PAY to the order of WACHOVIA BANK, N.A. (the “Bank”) for the
account of its Applicable Lending Office (as defined in the Credit Agreement referred to below) on
the date set forth in clause (i) of the definition of Termination Date (as defined in the Credit
Agreement referred to below) the principal sum of NINETY-FIVE MILLION AND 00/100 DOLLARS
(U.S.$95,000,000.00) or, if less, the aggregate principal amount of the Revolving Credit Advances
owed to the Bank by the Borrower pursuant to the Credit Agreement, dated as of May 1, 2006 (as
amended or otherwise modified from time to time, the “Credit Agreement”; the terms defined therein
and not defined herein being used herein as therein defined), among The Williams Companies, Inc.,
Williams Partners L.P., Northwest Pipeline Corporation and Transcontinental Gas Pipe Line
Corporation, as Borrowers, Citibank, N.A., as Agent, and the Banks and Issuing Banks parties
thereto) outstanding on such date set forth in clause (i) of such definition of Termination Date.

     The Borrower promises to pay interest on the unpaid principal amount of each Revolving Credit
Advance from the date of such Revolving Credit Advance until such principal amount is paid in full,
at such interest rates, and payable at such times, as are specified in the Credit Agreement. Both
principal and interest in respect of each Revolving Credit Advance are payable in lawful money of
the United States of America to the Agent at its address contemplated by Section 2.7(a) of the
Credit Agreement, in same day funds.

     Each Revolving Credit Advance owing to the Bank by the Borrower pursuant to the Credit Agreement,
and all payments made on account of principal thereof, shall be recorded by the Bank and, prior to
any transfer hereof, endorsed on the grid attached hereto which is part of this Promissory Note.

     This Promissory Note is one of the Notes referred to in, and is entitled to the benefits of,
the Credit Agreement. The Credit Agreement, among other things, (i) provides for the making of
Revolving Credit Advances by the Bank to the Borrower from time to time in an aggregate amount not
to exceed at any time outstanding the U.S. Dollar amount first above mentioned, the indebtedness of
the Borrower resulting from each
such Revolving Credit Advance being evidenced by this Promissory Note and (ii) contains
provisions for acceleration of the maturity hereof upon the happening of certain stated events and
also for prepayments on account of principal hereof prior to the maturity hereof upon the terms and
conditions therein specified.

     The Borrower hereby waives presentment, demand, protest, notice of intent to accelerate,
notice of acceleration and any other notice of any kind, except as provided in the Credit
Agreement. No failure to exercise, and no delay in exercising, any rights hereunder on the part of
the holder hereof shall operate as a waiver of such rights.

     This Promissory Note shall be governed by, and construed in accordance with, the laws of the
State of New York.

 

 

	 	 	 	 	 
	 	THE WILLIAMS COMPANIES, INC.

 	 
	 	By:  	/s/ Rodney J. Sailor
 	 
	 	 	Name:  	Rodney J. Sailor 	 
	 	 	Title:  	Vice President & Treasurer 	 

Signature Page to the Promissory Note

 

 

REVOLVING CREDIT ADVANCES AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	Amount of	 	 	 	 
	 	 	Revolving Credit	 	Principal Paid	 	Unpaid Principal	 	Notation
	Date	 	Advance	 	or Prepaid	 	Balance	 	Made Byexv10w3

Exhibit 10.3

EXECUTION VERSION

CREDIT AGREEMENT

Dated as of February 23, 2007

among

WILLIAMS PRODUCTION RMT COMPANY

as Counterparty

WILLIAMS PRODUCTION COMPANY, LLC

as Guarantor

CITIBANK, N.A.

as Administrative Agent

CITIGROUP ENERGY INC.

as Computation Agent

CALYON NEW YORK BRANCH

as Collateral Agent and PV Determination Agent

and

THE BANKS NAMED HEREIN

as Banks

 

CITIGROUP GLOBAL MARKETS INC.

and

CALYON NEW YORK BRANCH

Joint Lead Arrangers and Co-Book Runners

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 

	 
	 	ARTICLE I	 	 	 	 
	 
	 	DEFINITIONS AND ACCOUNTING TERMS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1.1
	 	Certain Defined Terms	 	 	1	 
	SECTION 1.2
	 	Computation of Time Periods	 	 	20	 
	SECTION 1.3
	 	Accounting Terms	 	 	20	 
	SECTION 1.4
	 	Miscellaneous	 	 	20	 
	SECTION 1.5
	 	Ratings	 	 	20	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE II	 	 	 	 
	 
	 	TERMS OF THE FACILITY	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.1
	 	Terms	 	 	21	 
	SECTION 2.2
	 	Payments and Computations	 	 	21	 
	SECTION 2.3
	 	Taxes	 	 	22	 
	SECTION 2.4
	 	Fees	 	 	25	 
	SECTION 2.5
	 	Interest	 	 	25	 
	SECTION 2.6
	 	Engineering Reports and Present Value	 	 	25	 
	SECTION 2.7
	 	Present Value Deficiency	 	 	28	 
	SECTION 2.8
	 	Removal and Addition of Banks	 	 	29	 
	SECTION 2.9
	 	Sharing of Payments, Etc.	 	 	29	 
	SECTION 2.10
	 	Bank Credit Support	 	 	29	 
	SECTION 2.11
	 	Collateral Account	 	 	30	 
	SECTION 2.12
	 	Use of Collateral; Interest	 	 	30	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE III	 	 	 	 
	 
	 	CLOSING	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.1
	 	Payment of Fees and Documents	 	 	31	 
	SECTION 3.2
	 	Effectiveness of Agreement	 	 	33	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IV	 	 	 	 
	 
	 	REPRESENTATIONS AND WARRANTIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.1
	 	Representations and Warranties of the Credit Parties	 	 	33	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE V	 	 	 	 
	 
	 	COVENANTS OF THE CREDIT PARTIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 5.1
	 	Affirmative Covenants	 	 	36	 
	SECTION 5.2
	 	Negative Covenants	 	 	40	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VI	 	 	 	 
	 
	 	EVENTS OF DEFAULT; CERTAIN REMEDIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 6.1
	 	Events of Default	 	 	43	 
	SECTION 6.2
	 	Abatement of Certain Defaults	 	 	45	 
	SECTION 6.3
	 	Additional Remedies	 	 	46	 

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 

	 
	 	ARTICLE VII	 	 	 	 
	 
	 	THE AGENTS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 7.1
	 	Agents’ Authorization and Action	 	 	46	 
	SECTION 7.2
	 	Agents’ Reliance, Etc.	 	 	47	 
	SECTION 7.3
	 	Rights	 	 	47	 
	SECTION 7.4
	 	Indemnification	 	 	48	 
	SECTION 7.5
	 	Successor Agents	 	 	48	 
	SECTION 7.6
	 	Decisions	 	 	50	 
	SECTION 7.7
	 	Certain Rights of the Agents	 	 	50	 
	SECTION 7.8
	 	Other Persons	 	 	50	 
	SECTION 7.9
	 	Additional Rights of Collateral Agent	 	 	50	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VIII	 	 	 	 
	 
	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 8.1
	 	Amendments, Etc.	 	 	51	 
	SECTION 8.2
	 	Notices, Etc.	 	 	51	 
	SECTION 8.3
	 	No Waiver; Remedies	 	 	53	 
	SECTION 8.4
	 	Costs and Expenses	 	 	53	 
	SECTION 8.5
	 	Binding Effect; Transfers	 	 	54	 
	SECTION 8.6
	 	Governing Law	 	 	56	 
	SECTION 8.7
	 	Interest	 	 	56	 
	SECTION 8.8
	 	Execution in Counterparts	 	 	56	 
	SECTION 8.9
	 	Survival of Agreements,
Representations and Warranties, Etc.	 	 	56	 
	SECTION 8.10
	 	Confidentiality	 	 	56	 
	SECTION 8.11
	 	Waiver of Jury Trial	 	 	57	 
	SECTION 8.12
	 	Severability	 	 	57	 
	SECTION 8.13
	 	Forum Selection and Consent to Jurisdiction; Damages	 	 	57	 
	SECTION 8.14
	 	Right of Set-off	 	 	58	 
	SECTION 8.15
	 	Separateness	 	 	58	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IX	 	 	 	 
	 
	 	GUARANTY	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 9.1
	 	Guaranty	 	 	58	 
	SECTION 9.2
	 	Limit of Liability	 	 	58	 
	SECTION 9.3
	 	Guaranty Absolute	 	 	58	 
	SECTION 9.4
	 	Certain Rights and Waivers	 	 	60	 
	SECTION 9.5
	 	Continuing Guaranty	 	 	61	 

 

 

TABLE OF CONTENTS

(continued)

Schedules and Exhibits

	 	 	 

	Schedule I

	 	Bank Information
	Schedule II

	 	Notice Information for the Credit Parties
	Schedule III

	 	Bank Credit Support Thresholds
	Schedule IV

	 	Limited Permitted Liens
	Schedule V

	 	General Permitted Liens
	 
	 	 
	Exhibit A

	 	Opinion of In-House Counsel
	Exhibit B

	 	Opinion of Gibson, Dunn & Crutcher
	Exhibit C

	 	Form of Security Agreement
	Exhibit D

	 	Form of Engineering Report
	Exhibit E

	 	Form of ISDA Master Agreement
	Exhibit F

	 	Form of Subordination Agreement
	Exhibit G

	 	Form of Counterparty Daily Report
	Exhibit H

	 	Form of Computation Agent Daily Report
	Exhibit I

	 	Form of Acceptable Letter of Credit
	Exhibit J

	 	Form of New Bank Agreement
	Exhibit K

	 	Form of Bank Guaranty
	Exhibit L

	 	Form of Report Identifying Banks
	Exhibit M

	 	Pre-Approved Delivery Points
	Exhibit N

	 	Pre-Approved Hedge Types

 

 

CREDIT AGREEMENT

     This Credit Agreement dated as of February 23, 2007 (as it may be amended, modified, supplemented,
renewed, extended or restated from time to time, this “Agreement”), is by and among
Williams Production RMT Company, a Delaware corporation (the “Counterparty”), Williams
Production Company, LLC, a Delaware limited liability company, as Guarantor, the Banks, Citibank,
N.A., as Administrative Agent, Citigroup Energy Inc., as Computation Agent, and Calyon New York
Branch, as Collateral Agent and as PV Determination Agent. In consideration of the mutual covenants
and agreements contained herein, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

     SECTION 1.1 Certain Defined Terms. As used in this Agreement, the following terms shall
have the following meanings (such meanings to be equally applicable to both the singular and plural
forms of the terms defined):

     “Acceptable Bank Guaranty” means an agreement substantially in the form of Exhibit K
executed by a Bank or a direct or indirect parent of a Bank and delivered to the Collateral Agent.

     “Acceptable Collateral” means cash and direct United States treasury obligations having a
remaining term to maturity of less than one year, in each case, (i) deposited into the Collateral
Account and (ii) in which the Collateral Agent has an Acceptable Security Interest.

     “Acceptable Credit Support” means Acceptable Collateral and Acceptable Letters of Credit
(including the proceeds of any Acceptable Letter of Credit); provided that Acceptable Credit
Support does not include any Bank Credit Support that is not Retained Bank Credit Support.

     “Acceptable Letter of Credit” means a letter of credit (i) that is issued by a commercial
bank domiciled in the United States having senior unsecured long-term Dollar-denominated debt or
deposit obligations rated at least A2 by Moody’s and at least A by S&P, (ii) that is delivered to
the Collateral Agent, (iii) that names the Collateral Agent as sole beneficiary, subject to
transfer to any successor Collateral Agent, (iv) that is in substantially the form of Exhibit I or
is otherwise in form and substance satisfactory to the Collateral Agent and (v) that is
specifically made transferable to any successor Collateral Agent. With respect to any Acceptable
Letter of Credit, (a) phrases such as “deposit into the Collateral Account” or “deposit to the
Collateral Account” or phrases of like import shall be deemed also to mean “delivered to the
Collateral Agent”, and (b) phrases such as “held in the Collateral Account”, “retained in the
Collateral Account”, or “in the Collateral Account” or phrases of like import shall be deemed also
to mean “delivered to and held by the Collateral Agent”.

     “Acceptable Security Interest” in any property means a Lien granted pursuant to a Security
Document (a) which exists in favor of the Collateral Agent for the benefit of the Agents and the
Banks, (b) which is superior to all other Liens, except Limited Permitted Liens, (c) which secures
all of the Obligations and secures only the Obligations and (d) which is perfected and is
enforceable by the Collateral Agent for the benefit of the Agents and the Banks against all other
Persons in preference to any rights of any such other Persons therein (other than beneficiaries of
Limited Permitted Liens); provided that such Lien may be subject to Limited Permitted
Liens.

 

 

     “Acquired Reserves Engineering Report” means an Audited Report covering all newly acquired
Proved Reserves that the Counterparty desires to have included in the Present Value determination
and Forecasted Annual Production.

     “Administrative Agent” means Citibank, in its capacity as administrative agent pursuant to
Article VII, and any successor Administrative Agent pursuant to Section 7.5.

     “Agents” means the Administrative Agent, the Collateral Agent, the Computation Agent and the PV
Determination Agent.

     “Aggregate Net MTM Exposure” means, at any time, the sum of (i) the net MTM Exposure for
all Qualifying Hedges most recently determined by the Computation Agent (expressed as a positive
number if the Counterparty would have a net MTM Exposure to the Banks on all Qualifying Hedges
(that is, such net MTM Exposure represents a potential loss of the Counterparty) and expressed as a
negative number if the Banks would have a net MTM Exposure to the Counterparty on all Qualifying
Hedges (that is, such net MTM Exposure represents a potential gain of the Counterparty))
plus (ii) the aggregate amount secured by any Limited Permitted Lien (other than Liens
described in clause (b) of Schedule IV) that encumbers any Acceptable Credit Support (or, if less,
the amount of the Acceptable Credit Support so encumbered) or encumbers any amount that would be
payable by a Bank pursuant to the second sentence of Section 2.7 if a Present Value Deficiency
existed (or, if less, the portion of such amount that is so encumbered) minus (iii) the amount of
Acceptable Credit Support in the Collateral Account.

     “Agreement” has the meaning specified in the first paragraph hereof.

     “Apco Argentina” means Apco Argentina, Inc., a Cayman Islands corporation.

     “Applicable Credit Support Threshold” means, for any Bank, the amount set forth in the table on
Schedule III opposite the heading “Applicable Credit Support Threshold” for the relevant ratings
applicable to such Bank. The Applicable Credit Support Threshold for any Bank shall change when and
as any relevant rating applicable to such Bank changes.

     “Applicable Office” means, as to any Bank, the principal office through which such Bank has
entered into Qualifying Hedges.

     “Approved Engineer” means Netherland, Sewell & Associates, Inc., Miller and Lents, Ltd.,
Ryder Scott Company, LP or other certified independent engineers of recognized standing
satisfactory to the PV Determination Agent.

     “Asset” or “property” (in each case, whether or not capitalized) means any right,
title or interest in any kind of property or asset, whether real, personal or mixed, and whether
tangible or intangible, including Equity Interests and Hydrocarbon Interests.

     “Attributable Obligation” of any Person means, with respect to any Sale and Leaseback
Transaction of such Person as of any particular time, the present value at such time discounted at
the rate of interest implicit in the terms of the lease of the obligations of the lessee under such
lease for net rental payments during the remaining term of the lease (including any period for
which such lease has been extended or may, at the option of such Person only, be extended).

     “Audited Report” means an Engineering Report prepared by the Credit Party Entities and/or
an Approved Engineer (provided that a portion of such report covering at least 90% of the Proved
Reserves covered by such report shall be audited and/or prepared by an Approved Engineer) and based
upon

2

 

pricing and other assumptions made in accordance with the rules, regulations and other applicable
requirements of the United States Securities and Exchange Commission applicable to reserves
reporting.

     “Authorized Financial Officer” of any Person means the chief financial officer, chief
accounting officer, chief risk officer or treasurer of such Person.

     “Authorized Officer” of any Person means the president, the chief executive officer, any
Authorized Financial Officer, the general counsel, any vice president, the secretary, any assistant
secretary, the treasurer, any assistant treasurer, or the controller of such Person or any other
officer designated as an “Authorized Officer” by the board of directors (or equivalent governing
body) of such Person.

     “Bank Credit Support” means, with respect to any Bank, (i) all collateral that such Bank is
required to provide to the Counterparty pursuant to the terms of the ISDA Master Agreement to which
such Bank is a party, which collateral shall be in the form of cash or direct United States
treasury obligations having a remaining term to maturity of less than one year and (ii) all
payments under any Acceptable Bank Guaranty executed by such Bank or its direct or indirect parent.

     “Banks” means the signatories hereto that are listed in Schedule I and each other Person
that becomes a Bank pursuant to Section 2.8 or Section 8.5(a). Each reference to a “Bank” in any
Credit Document shall include each of its Designated Affiliates, and a Bank and its Designated
Affiliates shall be treated as one entity (including for purposes of computation of the Exposure
Fee, computation of net MTM Exposure, determining whether a Bank is Out of the Money, removal of a
Bank pursuant to Section 2.8 and voting matters). For avoidance of doubt, a “Bank” need not be an
institution that takes deposits, a bank or other financial institution.

     “Bargath Asset Transfer” means the transfer, from time to time, by the Counterparty to
Bargath Inc., a Colorado corporation, of any and all gathering system assets located in Garfield
and Rio Blanco Counties, state of Colorado, including gathering pipelines, delivery pipelines,
lateral pipelines, easements, rights-of-way, surface leases, surface use agreements, gas processing
plants, gas treatment facilities, gas compression facilities and gas dehydration facilities, all
equipment associated with any of the preceding and all relevant contracts, agreements, permits,
leases and licenses related to the ownership or operation of any of the assets so transferred.

     “Base Rate” means a fluctuating interest rate per annum in effect from time to time, which
rate per annum shall at all times be equal to the higher of:

     (a) the rate of interest announced publicly by Citibank in New York, New York, from time to time,
as Citibank’s base rate; or

     (b) 1/2 of 1% per annum above the Federal Funds Rate.

     “Business Day” means a day of the year on which banks are not required or authorized to close in
New York City.

     “Business Entity” means a partnership, limited partnership, limited liability partnership,
corporation (including a business trust), limited liability company, unlimited liability company,
joint stock company, trust, unincorporated association, joint venture or other entity.

     “Calyon New York” means Calyon New York Branch.

3

 

     “Capital Lease” means a lease that in accordance with GAAP must be reflected on a Person’s
balance sheet as an asset and corresponding liability.

     “Change of Control Event” means the occurrence of any of the following: (i) any Person or
two or more Persons acting in concert (other than (1) Investment Grade Persons or (2) trustees or
other fiduciaries holding securities under an employee benefit plan of TWC or of any Subsidiary of
TWC or (3) employees of TWC or of any of its Subsidiaries) shall have acquired beneficial ownership
(within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934), directly or indirectly, of securities of TWC (or other securities
convertible into such securities) representing 50% or more of the combined voting power of all
securities of TWC entitled to vote in the election of directors, other than securities having such
power only by reason of the happening of a contingency, (ii) any Person or two or more Persons
acting in concert (other than (1) Investment Grade Persons or (2) TWC or Subsidiaries of TWC or (3)
trustees or other fiduciaries holding securities under an employee benefit plan of TWC or of any
Subsidiary of TWC or (4) employees of TWC or of any of its Subsidiaries) shall have acquired
beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission
under the Securities Exchange Act of 1934), directly or indirectly, of securities of any Credit
Party (or other securities convertible into such securities) representing 50% or more of the
combined voting power of all securities of such Credit Party entitled to vote in the election of
directors or managers, other than securities having such power only by reason of the happening of a
contingency or (iii) the first day on which a majority of the members of the board of directors of
TWC are not Continuing Directors.

     “Citibank” means Citibank, N.A., a national banking association.

     “Class One Banks” shall be, at any time, all Banks that have an outstanding Qualifying
Hedge (whether or not any such Bank is Out of the Money) or that are owed any obligation under a
Qualifying Hedge that is no longer outstanding.

     “Class Two Banks” shall be, at any time, all Class One Banks other than any Bank that is Out of the
Money.

     “Close-out Amount”, with respect to any Qualifying Hedge, has the meaning specified in the
ISDA Master Agreement applicable to such Qualifying Hedge.

     “Code” means, as appropriate, the Internal Revenue Code of 1986, as amended, or any successor
federal tax code, and any reference to any statutory provision shall be deemed to be a reference to
any successor provision or provisions.

     “Collar” means a Hedge consisting of a put and a call, each entered into on the same day
between the same parties, having the same expiration date and covering the same notional volume.

     “Collateral Account” means an account established with the Collateral Agent, and under its
sole control (or, in the circumstances set forth in the last paragraph of Section 2.11, the control
of a collateral sub-agent), in which Acceptable Credit Support and Bank Credit Support may be
deposited.

     “Collateral Agent” means Calyon New York, in its capacity as collateral agent pursuant to
Article VII, and any successor Collateral Agent pursuant to Section 7.5.

     “Computation Agent” means Citigroup Energy Inc., in its capacity as computation agent
pursuant to Article VII, and any successor Computation Agent pursuant to Section 7.5.

4

 

     “Confirmation” has the meaning specified in any ISDA Master Agreement (including, for
avoidance of doubt, any document or other confirming evidence related to Pre-Existing
Transactions).

     “Consolidated” refers to the consolidation of the accounts of any Person and its
Consolidated Subsidiaries in accordance with GAAP.

     “Consolidated Subsidiaries” of any Person means all Subsidiaries of such Person the
financial statements of which are consolidated with those of such Person in accordance with GAAP.

     “Contingent Obligation” means any direct or indirect liability, contingent or otherwise, of
a Person (i) with respect to any Debt, lease, dividend or other obligation of another if the
primary purpose or intent thereof is to provide assurance to the obligee of such Debt, lease,
dividend or other obligation that such Debt, lease, dividend or other obligation will be paid or
discharged, or that any agreements relating thereto will be complied with, or that the obligee of
such Debt, lease, dividend or other obligation will be protected (in whole or in part) against loss
in respect thereof or (ii) with respect to any letter of credit issued for the account of such
Person or as to which such Person is otherwise liable for reimbursement of drawings. Contingent
Obligations shall include, without limitation, (a) the direct or indirect guaranty, endorsement
(other than for collection or deposit in the ordinary course of business), co-making, discounting
with recourse or sale with recourse by such Person of the Debt, lease, dividend or other obligation
of another, (b) the obligation to make take-or-pay or similar payments if required regardless of
non-performance by any other party or parties to an agreement, and (c) any liability of such Person
for the Debt, lease, dividend or other obligation of another through any agreement (contingent or
otherwise) (1) to purchase, repurchase or otherwise acquire such Debt, lease, dividend or other
obligation or any security therefor, or to provide funds for the payment or discharge of such Debt,
lease, dividend or other obligation (whether in the form of loans, advances, purchases of Equity
Interests, capital contributions or otherwise) or (2) to maintain the solvency or any balance sheet
item, level of income or financial condition of another if, in the case of any agreement described
under subclauses (1) or (2) of this sentence, the primary purpose or intent thereof is as described
in the preceding sentence. The amount of any Contingent Obligation shall be equal to the amount of
the obligation so guaranteed or otherwise supported or, if less, the amount to which such
Contingent Obligation is specifically limited.

     “Continuing Directors” means, as of any date of determination, any member of the board of
directors of TWC who:

     (1) was a member of such board of directors on the Effective Date; or

     (2) was nominated for election or elected to such board of directors with the approval of a
majority of the Continuing Directors who were members of such board of directors at the time of
such nomination or election.

     “Counterparty” has the meaning specified in the first paragraph hereof.

     “Credit Documents” means this Agreement, the Hedge Documents, each Security Document, each
Subordination Agreement, each New Bank Agreement and each document that amends, waives or otherwise
modifies any Credit Document, in each case at any time executed or delivered to any Agent or any
Bank in connection herewith.

     “Credit Party” means the Counterparty and the Guarantor.

     “Credit Party Entity” means each Credit Party and each Subsidiary of a Credit Party.

5

 

     “Debt” means, in the case of any Person, the principal or equivalent amount (without
duplication) of (i) indebtedness of such Person for borrowed money, (ii) obligations of such Person
evidenced by bonds, debentures, notes or similar instruments (other than surety, performance and
guaranty bonds), (iii) obligations of such Person to pay the deferred purchase price of property or
services (other than trade payables), (iv) obligations of such Person as lessee under Capital
Leases, (v) obligations of such Person under any Financing Transaction, (vi) any Attributable
Obligations of such Person with respect to any Sale and Leaseback Transaction, (vii) obligations of
such Person under guaranties in respect of, and obligations (contingent or otherwise) to purchase
or otherwise acquire, or otherwise to assure a creditor against loss in respect of, and other
Contingent Obligations in respect of, indebtedness or obligations of others of the kinds referred
to in clauses (i) through (vi) of this definition, and (viii) Contingent Obligations in respect of
any production payment; provided that Debt shall not include (1) Performance Guaranties,
(2) monetary obligations or guaranties of monetary obligations of Persons as lessee under leases
(other than, to the extent provided hereinabove, Attributable Obligations) that are, in accordance
with GAAP, recorded as operating leases, and (3) guarantees by such Person of obligations of
others which are not obligations described in clauses (i) through (vi) of this definition, and
provided further that where any such indebtedness or obligation of such Person is
made jointly, or jointly and severally, with any third party or parties other than any Subsidiary
of such Person, the amount thereof for the purpose of this definition only shall be the pro rata
portion thereof payable by such Person, so long as such third party or parties have not defaulted
on its or their joint and several portions thereof and can reasonably be expected to perform its or
their obligations thereunder. For the avoidance of doubt, “Debt” of a Person in respect of letters
of credit shall include, without duplication, only the principal amount of the obligations of such
Person in respect of such letters of credit that have been drawn upon by the beneficiaries to the
extent of the amount drawn, and shall include no other obligations in respect of such letters of
credit.

     “December 31 Engineering Report” means an Audited Report, dated as of December 31 of any
year, covering all Proved Reserves that the Counterparty desires to have included in the Present
Value determination and Forecasted Annual Production.

     “Default” means any event or condition that, upon the giving of notice or passage of time
or both, if required by Section 6.1, would constitute an Event of Default.

     “Defaulting Party”, in respect of any Qualifying Hedge, has the meaning specified in the ISDA
Master Agreement applicable to such Qualifying Hedge.

     “Designated Affiliate” of any Bank means an affiliate of such Bank that has been designated
as a Designated Affiliate of such Bank for purposes of this Agreement by notice to the Counterparty
and the Administrative Agent; provided that a Bank may not so designate any Person that is, at the
time of such purported designation, a Designated Affiliate of another Bank. If a Designated
Affiliate of a Bank (i) is not a party to any outstanding Qualifying Hedge and (ii) is neither owed
nor owes any obligation to make any payment of delivery under any Qualifying Hedge, such Bank may,
by notice to the Counterparty and the Administrative Agent, terminate the designation of such
Designated Affiliate as a Designated Affiliate.

     “Determining Party”, in respect of any Qualifying Hedge, means the Computation Agent for
purposes of determining a Close-out Amount to be used in the determination of an Early Termination
Amount with respect to such Qualifying Hedge.

     “Dollars” and “$” means lawful money of the United States of America.

     “Early Termination Amount”, in respect of any Qualifying Hedge, has the meaning specified
in Section 6(e) of the ISDA Master Agreement applicable to such Qualifying Hedge.

6

 

     “Early Termination Date”, in respect of any Qualifying Hedge, has the meaning
specified in the ISDA Master Agreement applicable to such Qualifying Hedge.

     “Early Termination Hedge” has the meaning specified in Section 2.6(g).

     “EDGAR” means the “Electronic Data Gathering, Analysis and Retrieval” system (or any successor
system thereof), a database maintained by the Securities and Exchange Commission containing
electronic filings of issuers of certain securities.

     “Effective Date” means February 23, 2007.

     “El Furrial” means WilPro Energy Services (El Furrial) Limited, a Cayman Islands
corporation.

     “Engineering Report” means a report, in substantially the form of Exhibit D or otherwise
reasonably satisfactory to the PV Determination Agent, setting forth, as of December 31 of any year
(or as of such other date as comports with Section 2.6(a)(ii) in the event of an Unscheduled
Redetermination), covering the Proved Reserves, together with a projection of the rate of
production and future revenue, severance or similar taxes, operating expenses and capital
expenditures with respect thereto as of such date. Such information shall be provided for each
basin comprising such Proved Reserves and by category of the reserves contained in each basin,
including proved developed producing, proved developed non-producing and proved undeveloped.

     “Environment” shall have the meaning set forth in 42 U.S.C. § 9601(8) or any successor statute and
“Environmental” shall mean pertaining or relating to the Environment.

     “Environmental Law” means any United States local, state or federal, or any foreign, law,
statute, regulation, order, consent decree, written agreement with a Governmental Authority or
Governmental Requirement arising from or in connection with or relating to the protection or
regulation of the Environment including those laws, statutes, regulations, orders, decrees, written
agreements with a Governmental Authority and other Governmental Requirements relating to the
disposal, cleanup, production, storing, refining, handling, transferring, processing or
transporting of Hazardous Waste, Hazardous Substances or any pollutant or contaminant.

     “Environmental Permits” mean all material permits, licenses, registrations, exemptions and
authorizations required under any Environmental Law.

     “Equity Interests” means any capital stock, partnership, joint venture, member or limited
liability or unlimited liability company interest, beneficial interest in a trust or similar entity
or other equity interest or investment of whatever nature or any warrant, option or other right to
acquire any Equity Interest.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated and rulings issued thereunder from time to time.

     “ERISA Affiliate” of any Credit Party means any trade or business (whether or not
incorporated) which is a member of a group of which such Credit Party is a member and which is
under common control or is treated as a single employer with such Credit Party within the meaning
of Section 414 of the Code and the regulations promulgated thereunder.

     “Events of Default” has the meaning specified in Section 6.1.

7

 

     “Exposure Fee” has the meaning specified in Section 2.4(b).

     “Federal Funds Rate” means, for any day, a fluctuating interest rate per annum equal for such day
to the weighted average of the rates on overnight federal funds transactions with members of the
Federal Reserve System arranged by federal funds brokers, as published for such day (or, if such
day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day which is a Business Day, the average of the
quotations for such day on such transactions received by the Administrative Agent from three
federal funds brokers of recognized standing selected by it.

     “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or any federal
agency or authority of the United States from time to time succeeding to its function.

     “Financing Transaction” means, with respect to any Person (i) any prepaid forward sale of
oil, gas or minerals by such Person (other than gas balancing arrangements in the ordinary course
of business), that is intended primarily as a borrowing of funds, excluding volumetric production
payments and (ii) any interest rate, currency, commodity or other swap, collar, cap, option or
other derivative that is intended primarily as a borrowing of funds (excluding interest rate,
currency, commodity or other swaps, collars, caps, options or other derivatives to hedge against
risks in the ordinary course of business), with the amount of the obligations of such Person
thereunder being the net obligations of such Person thereunder.

     “Fiscal Quarter” means any quarter of a Fiscal Year.
“Fiscal Year” means any period of twelve consecutive calendar months ending on December 31.

     “Forecasted Annual Production” means, for any year, the projected amounts of oil and
natural gas production for such year from the Proved Reserves (i) until the delivery of the first
December 31 Engineering Report delivered after the Effective Date, as set forth in Section 5.2(c)
and (ii) on and after the delivery of the first December 31 Engineering Report delivered after the
Effective Date, as outlined in the most recent December 31 Engineering Report and any subsequent
Acquired Reserves Engineering Reports. For avoidance of doubt, the Forecasted Annual Production is
determined solely for purposes of determining compliance with Section 5.2(c) and is not necessarily
the same as annual production forecasted in connection with any redetermination of the Present
Value.

     “GAAP” means generally accepted accounting principles in the United States as defined by the
American Institute of Certified Public Accountants (the “AICPA”) Statement of Auditing Standards
Number 69, including pronouncements of the Financial Accounting Standards Board and the AICPA.

     “Gas Transaction” shall have the meaning set forth in the ISDA Master Agreements.

     “General Permitted Liens” means Liens specifically described on Schedule V.

     “Governmental Authority” means the government of the United States, any other nation or any
political subdivision thereof, whether state or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other Person exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to government.

     “Governmental Requirements” means all judgments, orders, writs, injunctions, decrees,
awards, laws, ordinances, statutes, regulations, rules, franchises, permits, certificates,
licenses, authorizations and the like and any other requirements of any government or any
commission, board, court, agency, instrumentality or political subdivision thereof.

8

 

     “Guarantor” means WPC.

     “Hazardous Substance” shall have the meaning set forth in 42 U.S.C. § 9601(14) and shall
also include each other substance considered to be a hazardous substance under any Environmental
Law.

     “Hazardous Waste” shall have the meaning set forth in 42 U.S.C. § 6903(5) and shall also include
each other substance considered to be a hazardous waste under any Environmental Law (including
40 C.F.R. § 261.3).

     “Hedge” means, in each case whether settled physically, financially or otherwise, (a) any
transaction (including an agreement with respect to any such transaction) now existing or hereafter
entered into (i) which is a rate swap transaction, swap option, basis swap, forward rate
transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index
option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction,
currency option, credit protection transaction, credit swap, credit default swap, credit default
option, total return swap, credit spread transaction, repurchase transaction, reverse purchase
transaction, buy/sell-back transaction, securities lending transaction, weather index transaction
or forward purchase or sale of a security, commodity or other financial instrument or interest
(including any option with respect to any of these transactions) or (ii) which is a type of
transaction that is similar to any transaction referred to in clause (i) above that is currently,
or in the future becomes, recurrently entered into in the financial markets (including terms and
conditions incorporated by reference in such agreement) and which is a forward, swap, future,
option or other derivative on one or more rates, currencies, commodities, equity securities or
other equity instruments, debt securities or other debt instruments, economic indices or measures
of economic risk or value, or other benchmarks against which payments or deliveries are to be made
and (b) any combination of these transactions.

     “Hedge Documents” means each ISDA Master Agreement and each Confirmation.

     “Hydrocarbon Interests” means all rights, titles, interests and estates now owned or
hereafter acquired in any and all oil, gas and other liquid or gaseous hydrocarbon properties and
interests, including mineral fee or lease interests, concession agreements, license agreements or
similar Hydrocarbon interests granted by an appropriate Governmental Authority, farmout, overriding
royalty and royalty interests, net profit interests, oil payments, production payment interests and
similar interests in
Hydrocarbons, including any reserved or residual interests of whatever nature.

     “Hydrocarbons” means oil, gas, casing head gas, condensate, distillate, liquid
hydrocarbons, gaseous hydrocarbons, all products refined, separated, settled and dehydrated
therefrom, including kerosene, liquefied petroleum gas, refined lubricating oils, diesel fuel, drip
gasoline, natural gasoline, helium, sulfur and all other minerals.

     “Indemnified Parties” has the meaning assigned to such term in Section 8.4(b).

     “Insufficiency” means, with respect to any Plan, the amount, if any, by which the present
value of the vested benefits under such Plan exceeds the fair market value of the assets of such
Plan allocable to such benefits.

     “International Debt” means the Debt of any International Subsidiary.

9

 

     “International Subsidiary” means each of El Furrial, Apco Argentina, PIGAP II and any
Subsidiary of any of them; provided that no Person shall be an International Subsidiary if it is a
TWC Credit Party or owns, directly or indirectly, any Equity Interest in any TWC Credit Party.

     “Investment Grade Person” means any Person the senior unsecured long-term Dollar-denominated debt
of which is rated at least BBB- (stable) by S&P and at least Baa3 (stable) by Moody’s immediately
following the occurrence of any circumstance that would have been a Change of Control Event had
such Person not been an Investment Grade Person.

     “ISDA Master Agreement” means an agreement in substantially the form of Exhibit E between the
Counterparty and a Bank. An agreement will be deemed to be in substantially the form of Exhibit E
only if (i) it is referred to in Section 3.1(h) or (ii) it is attached to a New Bank Agreement and
is not designated by the Computation Agent within fifteen Business Days of its receipt thereof as
being not in substantially such form.

     “Joint Lead Arrangers” means Citigroup Global Markets Inc. and Calyon New York, as joint
lead arrangers and co-book runners.

     “Lien” means any mortgage, lien, pledge, charge, deed of trust, security interest,
encumbrance or other analogous type of preferential arrangement, whether arising by contract,
operation of law or otherwise (including the interest of a vendor or lessor under any conditional
sale agreement, Capital Lease or other title retention agreement).

     “Limited Permitted Liens” means Liens specifically described on Schedule IV.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations or condition, financial or otherwise, of the Credit Parties and their Subsidiaries taken
as a whole, or (b) the ability of the Credit Parties and their Subsidiaries, taken as a whole, to
perform their obligations under any Credit Document taken as a whole.

     “Material Subsidiary” of any Credit Party means (i) each Subsidiary (other than any Non-Recourse Subsidiary) of such Credit Party that owns in excess of 7.5% of the book value of the
Consolidated assets of the Credit Parties and their Consolidated Subsidiaries, (ii) each Subsidiary
of such
Credit Party that is a Credit Party, (iii) each Subsidiary of such Credit Party that owns any
interest in any
Oil and Gas Properties included in the most recent computation of the Present Value, (iv) until the
first
Redetermination Date, Williams Production Rocky Mountain Company, Williams Production Mid-Continent Company, and Williams Gulf Coast and (v) each Subsidiary of such Credit Party that is a
party
to any Permitted Hedge.

     “MLP” means Williams Partners L.P., a Delaware limited partnership.

     “Moody’s” means Moody’s Investor Service, Inc. or its successor.

     “MTM Exposure” means, for any particular calendar day for any Qualifying Hedge, the amount,
as determined by the Computation Agent for such calendar day (or, if such calendar day is not a
Business Day, for the next preceding Business Day), that would be the Early Termination Amount in
respect of such Qualifying Hedge (subject, in the case of a negative amount, to adjustment as
provided in the next sentence hereof), if (i) an Early Termination Date occurred on such day in
respect of such Qualifying Hedge, (ii) the Counterparty were the Defaulting Party in respect of
such Qualifying Hedge, (iii) the Bank party to such Qualifying Hedge were the Non-defaulting Party
in respect of such Qualifying Hedge and (iv) the Computation Agent were the Determining Party in
respect of such Qualifying Hedge. If (a) the

10

 

net MTM Exposure for any day for the Qualifying Hedges to which any particular Bank is a party
determined pursuant to the preceding sentence is a negative number and (b) such Bank party to such
Qualifying Hedges is not in compliance on such day with any requirement of the ISDA Master
Agreement to which it is a party that it provide Bank Credit Support, then for purposes of this
Agreement (other than for purposes of the determination of Exposure Fees), the net MTM Exposure for
such day for such Qualifying Hedges will be deemed to be an amount equal to (1) negative one times (2) the Applicable Credit Support Threshold for such Bank on such day. If the
Counterparty reasonably determines, as to any Bank, based on quotes from at least two reputable
brokers or, to the extent such quotes are not available, any other reasonable information, which
may (but need not) include indicative pricing from other Persons whether or not a party to this
Agreement (such quotes, if any, and any such other information being the “Additional
Information”), that the net MTM Exposure for any day for all Qualifying Hedges to which such
Bank is a party differs by more than 10% from the amount the net MTM Exposure for such day for such
Qualifying Hedges would have been if the Computation Agent had used only such Additional Information
and notifies the Computation Agent of such determination by 6:00 p.m. (New York City time) on the
date the Counterparty receives the report relating to such day contemplated by the penultimate
sentence of Section 7.1 (which notice shall set forth such Additional Information), then the
Computation Agent will in good faith redetermine the net MTM Exposure for such Qualifying Hedges by
6:00 p.m. (New York City time) on the Business Day following its receipt of such notice, using such
Additional Information and such other quotes and information as the Computation Agent reasonably
believes appropriate; provided that the Computation Agent may exclude any Additional Information
provided by the Counterparty that the Computation Agent in good faith believes is not appropriate
for inclusion as a result of illiquidity in the relevant market, market disruption, broker error or
other bona fide reason; provided further that until any such redetermination, the MTM Exposures
originally determined by the Computation Agent for such day for such Qualifying Hedges shall continue
to be the MTM Exposures for such day for such Qualifying Hedges. The Computation Agent will advise
the Counterparty, the Collateral Agent and the Banks of any such redetermination by delivery to
each of them of a revised report for the relevant day in substantially the form of Exhibit H. For
purposes of Section 2.4(b) only, the MTM Exposure for any Qualifying Hedge will be computed without
taking into account clauses 6(e)(i)(1)(B) and 6(e)(i)(2) of the relevant ISDA Master Agreement (which
clauses adjust for Unpaid Amounts).

     “Multiemployer Plan” means any multiemployer plan, as defined in Section 4001(a)(3) of
ERISA, which is maintained by (or to which there
is an obligation to contribute of) any Credit Party or an ERISA Affiliate of any Credit Party.

     “Multiple Employer Plan” means an employee benefit plan as defined in Section 3(2) of
ERISA, other than a Multiemployer Plan, subject to Title IV of ERISA to which any Credit Party or
any ERISA Affiliate of any Credit Party, and one or more employers other than any Credit Party or
an ERISA Affiliate of any Credit Party, is making or accruing an obligation to make contributions
or, in the event that any such plan has been terminated, to which any Credit Party or any ERISA
Affiliate of any Credit Party made or accrued an obligation to make contributions during any of the
five plan years preceding the date of termination of such plan.

     “New Bank Agreement” means an agreement in substantially the form of Exhibit J pursuant to which a
Person becomes a new “Bank” under this Agreement.

     “Non-Credit Party TWC Entity” means TWC and each of its Subsidiaries that is not a Credit
Party Entity.

     “Non-defaulting Party”, in respect of any Qualifying Hedge, has the meaning specified in the ISDA
Master Agreement applicable to such Qualifying Hedge.

11

 

     “Non-Producing Reserves” has the meaning assigned to that term in Section 2.6(d).

     “Non-Recourse Debt” means any Debt incurred by any Non-Recourse Subsidiary to finance the
acquisition, improvement, installation, design, engineering, construction, development, completion,
maintenance or operation of, or otherwise to pay costs and expenses relating to or provide
financing for, any new project commenced or acquired after the Effective Date, which Debt does not
provide for recourse against any Credit Party Entity (other than a Non-Recourse Subsidiary and such
recourse as exists under a Performance Guaranty) or any property or asset of any Credit Party
Entity (other than the Equity Interests in, or the property or assets of, a Non-Recourse
Subsidiary).

     “Non-Recourse Subsidiary” means (i) any non-material Subsidiary of any Credit Party whose
principal purpose is to incur Non-Recourse Debt and/or construct, lease, own or operate the assets
financed thereby, or to become a direct or indirect partner, member or other equity participant or
owner in a Business Entity created for such purpose, and substantially all the assets of which
Subsidiary and such Business Entity are limited to (x) those assets being financed (or to be
financed), or the operation of which is being financed (or to be financed), in whole or in part by
Non-Recourse Debt, or (y) Equity Interests in, or Debt or other obligations of, one or more other
such Subsidiaries or Business Entities, or (z) Debt or other obligations of any Person and (ii) any
Subsidiary of a Non-Recourse Subsidiary. For purposes of this definition, a “non-material
Subsidiary” shall mean any Consolidated Subsidiary of any Credit Party that (a) is not a Material
Subsidiary, (b) is not itself a Credit Party and (c) is not an owner, directly or indirectly, of
any Equity Interest in any Credit Party or any Material Subsidiary.

     “Obligations” means all obligations of the Counterparty to make any payment or delivery
under any Qualifying Hedge, all obligations of the Guarantor under this Agreement and all other
Debt, advances, interest, debts, liabilities, obligations, indemnities, fees, expenses, charges and
other amounts owing by any Credit Party to any Bank or any Agent under any Credit Document or to
any other Person required to be indemnified under any Credit Document, of any kind or nature,
present or future, arising under this Agreement or any other Credit Document, whether or not for
the payment of money, whether arising by reason of an extension of credit, loan, guaranty,
indemnification or in any other manner, whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, now existing or hereafter arising and
however acquired.

     “Obligors” has the meaning assigned to such term in Section 9.1.

     “Oil and Gas Properties” means (a) Hydrocarbon Interests; (b) all property now or hereafter pooled
or unitized with Hydrocarbon Interests; (c) all presently existing or future unitization
agreements, pooling agreements and declarations of pooled units and the units created thereby
(including all units created under orders, regulations and rules of any Governmental Authority)
which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements,
contracts and other agreements which relate to any of the Hydrocarbon Interests or the production,
sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon
Interests; (e) all Hydrocarbons in and under and which may be produced and saved or attributable to
the Hydrocarbon Interests, the lands covered thereby and all oil in tanks and all rents, issues,
profits, proceeds, products, revenues and other income from or attributable to the Hydrocarbon
Interests; and (f) all tenements, hereditaments, appurtenances and property in any manner
appertaining, belonging, affixed or incidental to the Hydrocarbon Interests, rights, titles,
interests and estates described or referred to above, including any and all property, now owned or
hereafter acquired and situated upon, used, held for use or useful in connection with the
operating, working or development of any of such Hydrocarbon Interests or property (excluding
drilling rigs, automotive equipment or other personal property which may be on such premises for
the purpose of drilling a well or for other similar temporary uses) and including any and all oil
wells, gas wells, injection wells or other wells, buildings, structures, fuel separators, liquid
extraction plants, plant compressors,

12

 

pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves,
fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances, tools,
implements, cables, wires, towers, casing, tubing and rods, surface leases, rights-of-way,
easements and servitudes, together with all additions, substitutions, replacements, accessions and
attachments to any and all of the foregoing.

     “Other Present Value Obligation” means any Debt in respect of which any Credit Party Entity has any
obligation or liability, any Non-Recourse Debt or any production payment to which any Credit Party
Entity is a party; provided that a Subordinated Intercompany Obligation shall not be an Other
Present Value Obligation.

     “Other Present Value Obligations Amount” means the aggregate principal amount of Other
Present Value Obligations. In determining the Other Present Value Obligations Amount, the principal
amount of (i) any Sale and Leaseback Transaction shall be deemed to be the Attributable Obligation
with respect thereto, (ii) any production payment (other than a volumetric production payment)
shall be deemed to be the undischarged balance thereof, and (iii) any volumetric production payment
shall be deemed to be the value of the remaining volumes to be delivered thereunder using the
prices that the PV Determination Agent most recently used to determine the Present Value (or, if
the first Redetermination Date has not occurred, using the prices used in the Engineering Report
referred to in Section 3.1(g)); provided that, if such volumes have not been taken into account in
determining the most recently determined Present Value (or, if the first Redetermination Date has
not occurred, in determining the amount set forth in Section 2.6(b)), the aggregate principal
amount of such volumetric production payment shall be zero.

     “Out of the Money” means, with respect to any Bank, that the net MTM Exposure, as most
recently determined by the Computation Agent, for all Qualifying Hedges to which such Bank is a
party is a negative number.

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Performance Guaranty” means any guaranty issued in connection with any Non-Recourse Debt
that (i) if secured, is secured only by assets of, or Equity Interests in, a Non-Recourse
Subsidiary and (ii) guarantees the (a) performance of the improvement, installation, design,
engineering, construction, acquisition, development, completion, maintenance or operation of, or
otherwise affects any such act in respect of, all or any portion of the project that is financed by
such Non-Recourse Debt, (b) completion of the minimum agreed equity contributions to the relevant
Non-Recourse Subsidiary or (c) performance by a Non-Recourse Subsidiary of obligations to Persons
other than the provider of such Non-Recourse Debt.

     “Permitted Dispositions” means (i) dispositions to a Credit Party, (ii) dispositions from a
Subsidiary of a Credit Party to another Subsidiary of a Credit Party if the aggregate direct and
indirect ownership interest held by the Credit Parties in such first Subsidiary is equal to the
aggregate direct and indirect ownership interest held by the Credit Parties in such other
Subsidiary, (iii) dispositions from a Credit Party to a Subsidiary of a Credit Party or from a
Subsidiary of a Credit Party to another Subsidiary of a Credit Party where the aggregate direct and
indirect ownership interest held by the Credit Parties in such first Subsidiary is not equal to the
aggregate direct and indirect ownership interest held by the Credit Parties in such other
Subsidiary if, in such case, promptly following such disposition the Counterparty’ delivers a
certificate to the Banks certifying that, after giving effect to such disposition, (a) Non-Producing Reserves continue to constitute 25% or less of the Proved Reserves used to determine the
Present Value then in effect and (b) Proved Reserves attributable to Restricted Interests continue
to constitute 15% or less of the Proved Reserves used to determine the Present Value then in effect
and (iv) the Bargath Asset Transfer.

13

 

     “Permitted Hedge” means (i) any back-to-back Hedge between WPC or any of its Subsidiaries
and the Counterparty or any of its Subsidiaries that matches in all material respects (other than
price) any Qualifying Hedge entered into by the Counterparty at the request of WPC or a Subsidiary
of WPC if (a) such back-to-back Hedge is changed each time such Qualifying Hedge is changed
(whether such Qualifying Hedge is changed by amendment, termination or otherwise, but excluding
changes related to price) and (b) all obligations of each Credit Party under such back-to-back
Hedge are Subordinated Intercompany Obligations, and (ii) any WPX Hedge.

     “Person” means an individual, partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture or other Business
Entity, or a government or any political subdivision or agency thereof.

     “PIGAP II” means WilPro Energy Services (PIGAP II) Limited, a Cayman Islands corporation.

     “Plan” means an employee pension benefit plan (other than a Multiemployer Plan) as defined
in Section 3(2) of ERISA currently maintained by, or in the event such plan has terminated, to
which contributions have been made or an obligation to make such contributions has accrued during
any of the five plan years preceding the date of the termination of such plan by, any Credit Party
or any ERISA Affiliate of any Credit Party for employees of any Credit Party or any such ERISA
Affiliate and covered by Title IV of ERISA or subject to the minimum funding standards under
Section 412 of the Code.

     “Pre-Approved Delivery Points” means the delivery points listed on Exhibit M and any other
delivery points agreed to in writing from time to time by the Counterparty and Computation Agent,
each in their sole discretion.

     “Pre-Approved Hedge Types” means the types of Hedges listed on Exhibit N and any other
types of Hedges agreed to in writing from time to time by the Counterparty and the Computation
Agent, each in their sole discretion

     “Pre-Existing Transactions” means the transactions entered into prior to the Effective Date between
the Counterparty and Calyon, Citibank or Citigroup Energy Inc. that, pursuant to agreements dated
the Effective Date executed by the Counterparty and Calyon, Citibank or Citigroup Energy Inc., are
transactions governed by an ISDA Master Agreement referred to in Section 3.1(h) executed by Calyon
or Citigroup Energy Inc.

     “Present Value” means at any time (i) the net present value of the projected future net revenues
attributable to the Proved Reserves, determined in accordance with Section 2.6 and in effect at such time minus (ii) the Terminated
Hedge Amount at such time.

     A “Present Value Deficiency” means, at any time when the Aggregate Net MTM Exposure is positive,
the amount (if any) needed to be added to the Collateral Account to cause the ratio of the Present
Value to the sum of (a) the Aggregate Net MTM Exposure plus (b) the Other Present Value Obligations
Amount to equal 1.50 to 1.00. A Present Value Deficiency will exist at all times that (i) the
Aggregate Net MTM Exposure is positive and (ii) an amount needs to be added to the Collateral
Account to cause such ratio to equal 1.50 to 1.00.

     “Present Value Matters” means Sections 2.6, 2.7 and 2.10 and each definition used in any of
such Sections.

     “Pro Forma Present Value Deficiency” means, as to any event, that a Present Value Deficiency would
have existed at the close of business one Business Day prior to the time such event occurs,
utilizing

14

 

in the determination of such Present Value Deficiency a “pro forma” Present Value (rather than the
actual Present Value) with such “pro forma” Present Value calculated using all the same assumptions
used in the most recent Present Value determination (or if the first Redetermination Date has not
occurred, used in the determination of the amount set forth in Section 2.6(b)), except for those
assumptions that would be directly changed by such event. If prior to any such event, the
Counterparty requests that the PV Determination Agent calculate a “pro forma” Present Value using
all the same assumptions used in the most recent Present Value determination (or if the first
Redetermination Date has not occurred, used in the determination of the amount set forth in Section
2.6(b)), except for those assumptions that would be directly changed by such event, then within 4
Business Days of such request, the PV Determination Agent shall calculate, and notify the
Counterparty of the amount of, such “pro forma” Present Value.

     “Property” has the meaning specified in the definition herein of Assets.

     “Proved Reserves” means those recoverable Hydrocarbons that have been estimated with
reasonable certainty, as demonstrated by geological and engineering data, to be economically
recoverable by existing operating methods under existing economic conditions from the net interest
owned directly by the Credit Party Entities (other than Non-Recourse Subsidiaries) in oil and gas
reserves attributable to Oil and Gas Properties located in the United States. Any such net interest
owned by a Subsidiary (other than Williams Gulf Coast) that is not wholly-owned by a Credit Party
shall exclude the portion of such interest attributable to the minority interests in such
Subsidiary. Any such net interest owned by Williams Gulf Coast shall include the entire net
interest owned by Williams Gulf Coast without reduction for any interest owned in Williams Gulf
Coast by any Person that is not a Credit Party Entity.

     “PV Determination Agent” means Calyon New York, in its capacity as PV determination agent
pursuant to Article VII, and any successor PV Determination Agent pursuant to Section 7.5.

     “Qualifying Hedge” means the Pre-Existing Transactions and any bilateral hedge transaction
(other than a transaction settled by physical delivery of oil) entered into pursuant to this
Agreement between the Counterparty and any Bank (i) pursuant to which the Counterparty (a) hedges
against basis risk or hedges against any decrease in the price of oil or natural gas (including
hedges effected by way of collars, swaps, puts, calls or any combination thereof and hedges settled
by physical delivery of natural gas) during all or a portion of the period from the date of such
Qualifying Hedge to the earlier of the Termination Date and December 31 of the third calendar year
following the date of such Qualifying Hedge or (b) unwinds,
lifts, terminates the effect of, or otherwise reverses, in whole or in part, another Qualifying
Hedge, and (ii) which is documented by an ISDA Master Agreement and a Confirmation, each properly
completed.

     “Ratable Portion” means, as to any Bank, (a) with respect to any claim, damage, loss,
liability, cost, fee or expense referred to in Section 5.1(f) or
Section 7.4, (i) if such Bank was a
party to this Agreement (a) at the time such claim, damage, loss, liability, cost, fee or expense
was incurred or (b) at the time of the occurrence or existence of the event, condition, action or
inaction that constituted a basis or reason for such claim, damage,
loss, liability, cost, fee or
expense, a fraction, the numerator of which is one and the denominator of which is the total number
of Banks that are referred to in this clause (i) with respect to such claim, damage, loss,
liability, cost, fee or expense, and (ii) otherwise, zero; and (b) with respect to any specific
indemnity referred to in the last sentence of Section 7.7, (i) if such Bank was a party to this
Agreement at the time such specific indemnity was entered into, a fraction, the numerator of which
is one and the denominator of which is the total number of Banks that are referred to in this
clause (i) with respect to such specific indemnity, and (ii) otherwise, zero.

     “Redetermination Date” means any date that a redetermined Present Value becomes effective
in accordance with Section 2.6.

15

 

     “Register” has the meaning specified in Section 8.5(c).

     “Related Party” of any Person means any other Person of which more than 10% of the
outstanding Equity Interests having ordinary voting power to elect a majority of the board of
directors of such other Person or others performing similar functions (irrespective of whether or
not at the time Equity Interests of any other class or classes of such other Person shall or might
have voting power upon the occurrence of any contingency) is at the time directly or indirectly
owned by such first Person or which owns at the time directly or indirectly more than 10% of the
outstanding Equity Interests having ordinary voting power to elect a majority of the board of
directors of such first Person or others performing similar functions (irrespective of whether or
not at the time Equity Interests of any other class or classes of such first Person shall or might
have voting power upon the occurrence of any contingency).

     “Relevant Amount” has the meaning specified in Section 2.6(g).

     “Required Banks” (i) means at all times .when no Qualifying Hedge is outstanding and no
obligation exists under a Qualifying Hedge that is no longer outstanding, (a) 2/3 in number of the
Banks for all Present Value Matters, and (b) a majority in number of the Banks for all other
purposes, and (ii) at all other times, shall have the meaning determined in accordance with the
following:

	 	 	 
	Action	 	Required Banks
	Amendments and waivers (other
than Present Value Matters) and
all other matters not covered
below in this table

	 	A majority of the Class One
Banks and a majority of the
Class Two Banks
	 
	 	 
	Enforcement of Article IX,
directing the Collateral Agent
to draw under an Acceptable
Letter of Credit or otherwise
realize on Acceptable Credit
Support, exercise of all other
rights and remedies during an
Event of Default and initiation
of any Unscheduled
Redetermination

	 	A majority of the Class One
Banks or a majority of the Class
Two Banks
	 
	 	 
	Approval of Present Value

	 	The smaller of the Present Value
approved by 2/3 of Class One Banks or
the Present Value approved by 2/3 of
the Class Two Banks
	 
	 	 
	Amendments and waivers
pertaining to Present Value
Matters

	 	2/3 of Class One Banks and 2/3 of Class
Two Banks

     All voting by Class One Banks shall be done on a one-Bank-one-vote basis. All voting by Class Two
Banks shall be on the basis of each Class Two Bank’s net MTM Exposure on all Qualifying Hedges.

16

 

     “Restricted
Interests” means (i) all Restricted Net Profits Interests and (ii) all
interests owned by any Subsidiary of a Credit Party that is not itself a Credit Party.

     “Restricted Net Profits Interest” means a net profits interest in any property if a Credit
Party Entity does not own a working interest in such property.

     “Retained Bank Credit Support” shall have the meaning set forth in Section 2.10.

     “S&P” means Standard & Poor’s Rating Group, a division of The McGraw Hill Companies, Inc.
on the date hereof or its successor.

     “Sale and Leaseback Transaction” of any Person means any arrangement entered into by such
Person or any Subsidiary of such Person, directly or indirectly, whereby such Person or any
Subsidiary of such Person shall sell or transfer any property, whether now owned or hereafter
acquired to any other Person (a “Transferee”), and whereby such first Person or any
Subsidiary of such first Person shall then or thereafter rent or lease as lessee such property or
any part thereof or rent or lease as lessee from such Transferee or any other Person other property
which such first Person or any Subsidiary of such first Person intends to use for substantially the
same purpose or purposes as the property sold or transferred.

     “Scheduled Redetermination” shall have the meaning set forth in Section 2.6(c)..

     “Security
Documents” means (i) any security agreement in substantially the form of Exhibit C (or
other form acceptable to the Collateral Agent), as each may be amended, modified, supplemented,
renewed, extended or restated from time to time, and (ii) for purposes of Section 2.3, any letter
of credit in the Collateral Account.

     “Solvent” and “Solvency” means, with respect to any Person on a particular date, that on such date
(a) the fair value of the property of such Person is greater than the total amount of liabilities,
including contingent liabilities, of such Person, (b) the present fair salable value of the assets
of such Person is not less than the amount that will be required to pay the probable liability of
such Person on its debts as they become absolute and matured, (c) such Person does not intend to,
and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay
such debts and liabilities as they mature and (d) such Person is not engaged in business or a
transaction, and is not about to engage in business or a transaction,
for which such Person’s
property would constitute an unreasonably small capital. The amount of contingent liabilities at any time shall be computed as
the amount that, in the light of all the facts and circumstances existing at such time, represents
the amount that can reasonably be expected to become an actual or matured liability.

     “Specified Obligations” means any obligation under a loan or production payment referred to
in paragraph (i) of Schedule V.

     “Subordinated Intercompany Obligations” means all liabilities under Permitted Hedges and
Debt owed to TWC or any of its Subsidiaries if such liabilities and Debt are subordinate to all
Obligations pursuant to a subordination agreement in substantially the form of Exhibit F.

     “Subordination Agreement” means each subordination agreement referred to in the definition
herein of Subordinated Intercompany Obligations (including any subordination agreement delivered
pursuant to Section 3.1).

     “Subsidiary” of any Person means any corporation, partnership, joint venture or other
Business Entity of which more than 50% of the outstanding Equity Interests having ordinary voting
power to elect

17

 

a majority of the board of directors of such corporation, partnership, joint venture or other
Business Entity or others performing similar functions (irrespective of whether or not at the time
Equity Interests of any other class or classes of such corporation, partnership, joint venture or
other Business Entity shall or might have voting power upon the occurrence of any contingency) is
at the time directly or indirectly owned by such Person, and in addition, with respect to the
Guarantor, includes Williams Gulf Coast, irrespective of the Guarantor’s ownership of the Equity
Interests of Williams Gulf Coast.

     “Terminated Hedge Amount” means at any time the net aggregate amount of all Relevant
Amounts for all Early Termination Hedges that have been terminated prior to their stated expiration
date since the most recent Redetermination Date; provided that so long as the absolute
value of such net aggregate amount is less than $100 million, the Terminated Hedge Amount shall be
zero.

     “Termination Date” means December 31, 2011.

     “Termination
Event (ERISA)” means (i) a “reportable event”, as such term is described in
Section 4043(c) of ERISA (other than a “reportable event” not subject to the provision for 30-day
notice to the PBGC or a reportable event” as such term is described in Section 4043(c)(3) of ERISA)
which could reasonably be expected to result in a termination of, or the appointment of a trustee
to administer, a Plan, or which causes any Credit Party, due to actions of the PBGC, to be required
to contribute at least $125,000,000 in excess of the contributions which otherwise would have been
made to fund a Plan based upon the contributions recommended by such Plan’s actuary, or (ii) the
withdrawal of a Credit Party or any ERISA Affiliate of a Credit Party from a Multiple Employer Plan
during a plan year in which it was a “substantial employer,” as such term is defined in Section
4001(a)(2) of ERISA, or the incurrence of liability by a Credit Party
or any ERISA Affiliate of a
Credit Party under Section 4064 of ERISA upon the termination of a Plan or Multiple Employer Plan,
or (iii) the institution of proceedings to terminate a Plan by the PBGC under Section 4042 of
ERISA, or (iv) any other event or condition which could reasonably be expected to result in the
termination of, or the appointment of, a trustee to administer, any Plan under Section 4042 of
ERISA, other than (in the case of clauses (ii), (iii) and (iv) of this definition) where the
matters described on such clauses, in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

     “Transfer Agreement” means an assignment and assumption agreement in form and substance
reasonably satisfactory to the Administrative Agent and the Computation Agent

     “TWC” means The Williams Companies, Inc., a Delaware corporation.

     “TWC Credit Party” means TWC and any borrower or guarantor under a TWC Principal Credit
Facility.

     “TWC Default” means (i) TWC or any Subsidiary of TWC (other than any TWC Excluded Entity)
shall fail to pay any principal of or premium or interest on the TWC Principal Credit Facility or
any other TWC Principal Debt when the same becomes due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument relating to such TWC
Principal Credit Facility or such other TWC Principal Debt; or (ii) the TWC Principal Credit
Facility or any other TWC Principal Debt shall be accelerated.

     “TWC Excluded Entity” means MLP, any Subsidiary of MLP, any TWC Non-Recourse Subsidiary and
any International Subsidiary.

18

 

     “TWC Non-Recourse Debt” means any Debt incurred by any TWC Non-Recourse Subsidiary to
finance the acquisition, improvement, installation, design, engineering, construction, development,
completion, maintenance or operation of, or otherwise to pay costs and expenses relating to or
provide financing for, any new project commenced or acquired after the Effective Date, which Debt
does not provide for recourse against TWC, or any Subsidiary of TWC (other than a TWC Non-Recourse
Subsidiary and such recourse as exists under a TWC Performance Guaranty) or any property or asset
of TWC, or any Subsidiary of TWC (other than the Equity Interests in, or the property or assets of,
a TWC Non-Recourse Subsidiary).

     “TWC
Non-Recourse Subsidiary” means (i) any non-material Subsidiary of TWC whose principal
purpose is to incur TWC Non-Recourse Debt and/or construct, lease, own or operate the assets
financed thereby, or to become a direct or indirect partner, member or other equity participant or
owner in a Business Entity created for such purpose, and substantially all the assets of which
Subsidiary and such Business Entity are limited to (x) those assets being financed (or to be
financed), or the operation of which is being financed (or to be financed), in whole or in part by
TWC Non-Recourse Debt, or (y) Equity Interests in, or Debt or other obligations of, one or more
other such Subsidiaries or Business Entities, or (z) Debt or other obligations of any Person (other
than a Credit Party Entity) and (ii) any Subsidiary of a TWC Non-Recourse Subsidiary. For purposes
of this definition, a “non-material Subsidiary” shall mean any Consolidated Subsidiary of TWC that
is not a TWC Credit Party and is not an owner, directly or indirectly, of any Equity Interest in
any TWC Credit Party.

     “TWC Performance Guaranty” means any guaranty issued in connection with any TWC Non-Recourse Debt or International Debt that (i) if secured, is secured only by assets of, or Equity
Interests in, a TWC Non-Recourse Subsidiary or International Subsidiary, as applicable, and (ii)
guarantees the (a) performance of the improvement, installation, design, engineering, construction,
acquisition, development, completion, maintenance or operation of, or otherwise affects any such
act in respect of, all or any portion of the project that is financed by such TWC Non-Recourse Debt
or International Debt, (b) completion of the minimum agreed equity contributions to the relevant
TWC Non-Recourse Subsidiary or International Subsidiary, as applicable, or (c) performance by a TWC
Non-Recourse Subsidiary or International Subsidiary of obligations to Persons other than the
provider of such TWC Non-Recourse Debt or International Debt.

     “TWC Principal Credit Facility” means (i) the U.S. $1,500,000,000 Credit Agreement dated as
of May 1, 2006 among TWC, certain Subsidiaries of TWC, Citibank and others, as amended, modified,
supplemented, renewed, extended or restated from time to time, and (ii) following termination of the agreement referred to
in clause (i) of this definition, any other credit agreement that constitutes the principal credit
facility of TWC.

     “TWC Principal Debt” means any “Debt” (as defined in the TWC Principal Credit Facility or,
if “Debt” is not therein defined or if no TWC Principal Credit Facility then exists, as defined in
the most recently existing TWC Principal Credit Facility that defined “Debt”) of TWC or any
Subsidiary of TWC (other than any TWC Excluded Entity) in an aggregate principal amount outstanding
of $100,000,000 or more.

     “Unaudited Report” means an Engineering Report prepared by or under the supervision of the
manager of reserves of the Credit Party Entities and certified by such manager as being true and
correct in all material respects and as having been prepared in accordance with the procedures used
in the most recent December 31 Engineering Report delivered pursuant to Section 2.6 or Section
3.1(g). An Unaudited Report may take the form of an update to the most recently delivered December
31 Engineering Report with adjustments for acquisitions and dispositions, if any, and new pricing
assumptions, if any, provided by the PV Determination Agent.

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     “Unpaid Amounts” has the meaning specified in the relevant ISDA Master Agreement.

     “Unrated” means, as to any Bank, that no senior unsecured long-term Dollar-denominated debt
or deposit obligations of such Bank is rated by S&P and no senior unsecured long-term
Dollar-denominated debt or deposit obligations of such Bank is rated by Moody’s.

     “Unscheduled Redetermination” shall have the meaning set forth in Section 2.6(c).

     “Williams
Gulf Coast” means Williams Production-Gulf Coast Company, L.P., a Delaware limited
liability partnership.

     “Withdrawal
Liability” shall have the meaning given such term under Part I of Subtitle E of
Title IV of ERISA.

     “WPC” means Williams Production Company, LLC, a Delaware limited liability company.

     “WPX” means WPX Gas Resources Company, a Delaware corporation.

     “WPX
Hedge” means a Hedge between WPX and any Non-Credit Party TWC Entity if (i) such Hedge
is entered into in the normal course of business by WPX and (ii) the obligations, if any, of each
Credit Party in respect of such Hedge are Subordinated Intercompany Obligations.

     SECTION 1.2 Computation of Time Periods. In this Agreement in the computation of periods of
time from a specified date to a later specified date, the word “from” means “from and including”
and the words “to” and “until” each means “to but excluding”.

     SECTION 1.3 Accounting Terms. All accounting terms not specifically defined shall be
construed in accordance with GAAP. To the extent there are any changes in GAAP from December 31,
2005, the covenants set forth herein will continue to be determined in accordance with GAAP in
effect on December 31, 2005, as applicable, until such time, if any, as such covenants are adjusted
or reset to reflect such changes in GAAP and such adjustments or resets are agreed to in writing
by the Counterparty and the Administrative Agent (after consultation with the Required Banks).

     SECTION
1.4 Miscellaneous. The words “hereof”, “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Article, Section, Schedule and Exhibit
references are to Articles and Sections of and Schedules and Exhibits to this Agreement, unless
otherwise specified. The term “including” shall mean “including, without limitation”. References to
any document, instrument or agreement (a) shall include all exhibits, schedules and other
attachments thereto, (b) shall include all documents, instruments or agreements issued or executed
in replacement thereof and (c) shall mean such document, instrument or agreement, or replacement or
predecessor thereto, as amended, modified and supplemented from time to time and in effect at any
given time so long as such amended, modified or supplemented document, instrument or agreement does
not violate the terms of this Agreement.

     SECTION 1.5 Ratings. A rating, whether public or private, by S&P or Moody’s shall be deemed
to be in effect on the date of announcement or publication by S&P or Moody’s, as the case may be,
of such rating or, in the absence of such announcement or publication, on the effective date of
such rating and will remain in effect until the announcement or publication of, or in the absence
of such announcement or publication, the effective date of, any change in, or withdrawal or
termination of, such rating. In the event the standards for any rating by Moody’s or S&P are
revised, or any such rating is designated differently (such as by changing letter designations to
different letter designations or to

20

 

numerical designations), the references herein to such rating shall be deemed to refer to the
revised or redesignated rating for which the standards are closest
to, but not lower than, the
standards at the date hereof for the rating which has been revised or redesignated, all as
determined by the Required Banks in good faith. Long-term debt (or deposit obligations) supported
by a letter of credit, guaranty, insurance or other credit enhancement mechanism shall not be
considered as senior unsecured long-term debt (or deposit obligations).

ARTICLE II

TERMS OF THE FACILITY

     SECTION 2.1 Terms.

     (a) Procedure
for Hedges. The Counterparty and any Bank may elect, each in its sole
discretion, to enter into one or more Qualifying Hedges in accordance with the provisions of the
ISDA Master Agreement between the Counterparty and such Bank.

     (b) Uncommitted Facility. No Bank shall have any obligation whatsoever to enter into any
Qualifying Hedge.

     (c) No liability for other Banks’ Hedges. No Bank shall be responsible for the obligations
of any other Bank or the Counterparty, or have any liability, in respect of any Qualifying Hedge
entered into by such other Bank.

     (d) Bank Credit Support. The Counterparty agrees, and each Bank agrees, that such Bank will
not be required to provide, and will not provide, any collateral, guaranty, letter of credit or
other security in connection with any Qualifying Hedge, except Bank Credit Support required by the
ISDA Master Agreement to which such Bank is a party and any Acceptable Bank Guaranty contemplated
hereby. No Bank Credit Support will be released or modified if a Present Value Deficiency exists or
would result therefrom, except as provided in Section 2.10.

     (e) Acceptable Bank Guaranty. Each time a Bank designates a Designated Affiliate of such
Bank, such Bank shall deliver or cause to be delivered to the Administrative Agent an Acceptable
Bank Guaranty with respect to such Designated Affiliate. No Acceptable Bank Guaranty shall be
released or materially modified so long as the Designated Affiliate referred to therein remains a
Designated Affiliate.

     (f) Advance Notice of Certain Qualifying Hedges. Neither the Counterparty nor any Bank will
enter into any Qualifying Hedge that either (i) relates to any
delivery point that is not a Pre-Approved Delivery Point or (ii) is not a
Pre-Approved Hedge Type, unless (a) the Computation Agent receives, at least five Business Days
prior to the date that the Counterparty proposes to enter into such
Qualifying Hedge, a notice
from the Counterparty and the Bank proposing to enter into such Qualifying Hedge describing such
Qualifying Hedge and (b) the Computation Agent has not given notice to the Counterparty and such
Bank by the end of such five Business Day period that the Computation
Agent (1) has diligently
worked during such period to develop an appropriate valuation mechanism for such Qualifying Hedge
and (2) reasonably believes that it does not have an appropriate valuation mechanism for such
Qualifying Hedge.

     SECTION 2.2 Payments and Computations.

     (a) Each Credit Party shall make each payment hereunder to be made by it not later than 2:00 p.m.
(New York City time) on the day when due in Dollars (i) to the Administrative Agent at its address

21

 

referred to in Section 8.2 (excluding, for such purpose, any address to which copies are to be
sent), (ii) in the case of Exposure Fees, directly to the respective Banks entitled thereto or
(iii) in the case of fees referred to in Section 2.4(a), directly to the respective Agent or Joint
Lead Arranger entitled thereto, in each case in same day funds, without deduction, counterclaim or
offset of any kind. In the case of the foregoing clause (i), the Administrative Agent will promptly
thereafter cause to be distributed like funds relating to the payment of any amount payable to any
Bank to such Bank. In no event shall any Bank be entitled to share any fee paid to any Agent or a
Joint Lead Arranger, as such, or any amount applied to reimburse any Agent or a Joint Lead
Arranger, as such, as contemplated by any Credit Document.

     (b) All computations of interest and fees hereunder shall be made by the Administrative Agent on
the basis of a year of 365 or 366 days, as the case may be, for the actual number of days
(including the first day but excluding the last day) occurring in the period for which such
interest or fees are payable. Each determination by the Administrative Agent of an interest rate or
fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

     (c) Whenever any payment hereunder shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of payment of interest or any fee hereunder, as the case
may be.

     (d) Payments and deliveries under each Qualifying Hedge shall be effected directly between the
parties to, and in accordance with, such Qualifying Hedge, except as
provided in Sections 2.7 and 2.10. If the Counterparty or any Bank fails to make any payment or delivery required under a
Qualifying Hedge, the Counterparty (or, if the Counterparty has so failed to make such a payment or
delivery, the Bank party to such Qualifying Hedge) shall notify the Computation Agent of such
failure by the end of the Business Day next following such failure specifying the amount thereof
and identifying the Qualifying Hedge to which such failure pertains.

     SECTION 2.3 Taxes.

     (a) Any and all payments by any Credit Party under this Agreement or any Security Document shall be
made, in accordance with Section 2.2, free and clear of and without deduction for any and all
present or future taxes, levies, imposts, deductions, charges or withholdings with respect thereto,
and all liabilities with respect thereto, excluding, in the case of each Bank
and each Agent, (i) taxes imposed on its net income or net profits, and franchise taxes imposed on
it, by the jurisdiction under the laws of which such Bank, or such Agent (as the case may be) is
organized or any political subdivision thereof and (ii) taxes imposed as a result of a present or
former connection between such Bank or such Agent, as the case may be, and the jurisdiction
imposing such tax or any political subdivision thereof (other than any such connection arising
solely from such Bank or such Agent, as the case may be, having executed or delivered, or performed
its obligations or received a payment or delivery under, or taken any other action related to, any
Credit Document) and, in the case of each Bank, taxes imposed on its net income or net profits, and
franchise taxes imposed on it, by the jurisdiction of such Bank’s Applicable Office or any
political subdivision thereof (all such non-excluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as “Taxes”). If any Credit Party
shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder to any
Bank or any Agent, (i) the sum payable shall be increased as may be necessary so that after making
all required deductions for Taxes (including deductions for Taxes applicable to additional sums
payable under this Section 2.3), such Bank or such Agent, as the case may be, receives an amount
equal to the sum it would have received had no such deductions for Taxes been made, (ii) such
Credit Party shall make such deductions and (iii) such Credit
Party shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance with applicable law.

22

 

     (b) In addition, each Credit Party agrees to pay all present or future filing or recording fees,
stamp or documentary taxes and all other excise or property taxes, charges or similar levies which
arise from any payment made by such Credit Party hereunder or from the execution, delivery, filing,
recording or registration of, or otherwise with respect to, this Agreement or any Security Document
(herein referred to as “Other Taxes”).

     (c) Each Credit Party will indemnify each Bank and each Agent for the full amount of Taxes or Other
Taxes (including any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this
Section 2.3) owed and paid by such Bank or such Agent, as the case may be, and any liability
(including penalties, interest and expenses) arising therefrom or
with respect thereto. This
indemnification shall be made within 30 days from the date such Bank or such Agent, as the case may
be, makes written demand therefor; provided that such Credit Party shall have no liability pursuant
to this clause (c) of this Section 2.3 to indemnify a Bank or an Agent for Taxes or Other Taxes
which were paid by such Bank or such Agent, as the case may be, more than ninety days prior to such
written demand for indemnification.

     (d) In the event that a Bank or an Agent receives a written communication from any Governmental
Authority with respect to an assessment or proposed assessment of any Taxes, such Bank or such
Agent, as the case may be, shall promptly notify the Counterparty in writing and provide the
Counterparty with a copy of such communication. An Agent’s or a Bank’s failure to provide a copy of
such communication to the Counterparty shall not relieve the Counterparty of any of its obligations
hereunder.

     (e) Promptly following payment of Taxes by or at the direction of any Credit Party, such Credit
Party will furnish to the Administrative Agent, at its address
referred to in Section 8.2, the
original or a certified copy of a receipt evidencing payment thereof (or, if no such receipt is
reasonably available, other evidence of payment reasonably acceptable to the Administrative Agent).
Should any Bank or any Agent ever receive any refund, credit or deduction from any taxing authority
to which such Bank or such Agent, as the case may be, would not be entitled but for the payment by
such Credit Party of Taxes or Other Taxes as required by this Section 2.3 (it being understood that
the decision as to whether or not to claim, and if claimed, as to the amount of any such refund,
credit or deduction shall be made by such Bank or such Agent, as the case may be, in its reasonable
judgment), such Bank or such Agent, as the case may be, thereupon shall repay to such Credit Party
an amount with respect to such refund, credit or deduction equal to any net reduction in taxes
actually obtained by such Bank or such Agent, as the case may be, and determined
by such Bank or such Agent, as the case may be, to be attributable to such refund, credit or
deduction.

     (f) Each Bank organized under the laws of a jurisdiction outside the United States shall on or
prior to the date of its execution and delivery of this Agreement in the case of each Bank which is
a party to this Agreement on the date this Agreement becomes effective and on the date any other
Person becomes a Bank in the case of each other Bank, and from time to time thereafter as necessary
or appropriate (but only so long thereafter as such Bank remains lawfully able to do so), provide
the Administrative Agent and the Counterparty with two original Internal Revenue Service Forms
W-8BEN or W-8ECI (or, in the case of a Bank that has provided a certificate to the Administrative
Agent that it is not (i) a “bank” as that term is used in Section 881(c)(3)(a) of the Code, (ii) a
ten-percent shareholder (within the meaning of Section 871(h)(3)(b) of the Code) of any Credit
Party or (iii) a controlled foreign corporation related to any Credit Party (within the meaning of
Section 864(d)(4) of the Code), Internal Revenue Service Forms W-8BEN), or any successor or other
form prescribed by the Internal Revenue Service, certifying that such Bank is exempt from or
entitled to a reduced rate of United States withholding tax on payments pursuant to this Agreement
or any other Credit Document or, in the case of a Bank that has certified that it is not a “bank”
as described above, certifying that such Bank is a foreign

23

 

corporation. If the forms provided by a Bank at the time such Bank first becomes a party to this
Agreement indicate a United States interest withholding tax rate in excess of zero, withholding tax
at such rate shall be considered excluded from Taxes unless and until such Bank provides the
appropriate forms certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate only shall be considered excluded from Taxes for periods governed by such forms.

     (g) For any period with respect to which a Bank has failed to provide the Counterparty with the
appropriate form, certificate or other document required by subsection (f) of this Section 2.3
(other than if such failure is due to a change in the applicable law, or in the interpretation or
application thereof, occurring after the date on which a form, certificate or other document
originally was required to be provided) such Bank shall not be entitled to indemnification under
subsection (a) or (c) of this Section 2.3 with respect to Taxes imposed by the United States by
reason of such failure; provided, however, that should a Bank become subject to
Taxes because of its failure to deliver a form, certificate or other document required hereunder,
the Credit Parties shall take such steps as such Bank shall reasonably request (at such Bank’s
expense) to assist such Bank in recovering such Taxes.

     (h) Any Bank claiming any additional amounts payable pursuant to this Section 2.3 agrees to use
reasonable efforts to change the jurisdiction of its Applicable Office if the making of such a
change would avoid the need for, or reduce the amount of, any such additional amounts that may
thereafter accrue and would not, in the reasonable judgment of such Bank, be otherwise materially
disadvantageous to such Bank.

     (i) If a Credit Party determines in good faith that a reasonable basis exists for contesting a Tax,
the relevant Bank or Agent, as applicable, shall provide reasonable cooperation to such Credit
Party in challenging such Tax at such Credit Party’s expense and if requested by such Credit Party
in writing; provided, however, that no Bank nor Agent, as applicable, shall be
required to take any action hereunder which, in the reasonable discretion of such Bank or such
Agent, as applicable, would cause such Bank or its Applicable Office or such Agent, as applicable,
to suffer a legal, regulatory or material economic disadvantage.

     (j) Without prejudice to the survival of any other agreement of the Credit Parties hereunder, the
agreements and obligations of the Credit Parties contained in this Section 2.3 shall survive the
payment in full of the Obligations and the Termination Date.

     (k) Notwithstanding any provision of this Agreement to the contrary, this Section 2.3 shall be the
sole provision governing indemnities for and claims for Taxes under this Agreement and the Security
Documents. For avoidance of doubt, it is agreed that this Section 2.3 does not apply to payments or
deliveries made under any Qualifying Hedge (the tax aspects of which shall be governed by the Hedge
Documents, including Section 2(d) of the ISDA Master Agreement).

     (l) Notwithstanding any other provision in this Section 2.3, no additional amount shall be required
to be paid by any Credit Party under Section 2.3(a) or 2.3(c) to any Bank organized under the laws
of a jurisdiction outside the United States in respect of Taxes or any liabilities (including
penalties, interest and expenses arising therefrom or with respect thereto), except to the extent
that any change after the Effective Date (in the case of each Bank which was a party to this
Agreement on the Effective Date) or after the date on which another Person becomes a Bank (in case
of each other Bank) in any such requirement for a deduction, withholding or payment of Taxes
described in this Section 2.3 shall result in an increase in the rate of such deduction,
withholding or payment from that in effect at the Effective Date (in the case of each Bank which
was a party to this Agreement on the Effective Date) or at the date of the relevant document
pursuant to which another Person becomes a Bank (in the case of each other Bank). For avoidance of
doubt, this Section 2.3(1) does not apply to Other Taxes.

24

 

     SECTION 2.4 Fees.

     (a) Agents’ Fees. The Counterparty agrees to pay directly to each Agent, each collateral
sub-agent referred to in Section 2.11 and each Joint Lead Arranger, for its sole account, such fees
as may be separately agreed to in writing by the Counterparty and such Agent, such collateral
sub-agent or such Joint Lead Arranger, as the case may be.

     (b) Exposure Fees. The Counterparty agrees to pay to each Bank an exposure fee (an
“Exposure Fee”) in an amount equal to 0.625% per annum multiplied by the daily average of
the net MTM Exposure for all Qualifying Hedges to which such Bank is a party (excluding in the
computation of any Exposure Fee, those days on which the net MTM Exposure for all Qualifying Hedges
to which such Bank is a party is negative). All Exposure Fees owed to any Bank will be computed by
such Bank based on the reports substantially in the form of Exhibit H furnished by the Computation
Agent pursuant to Section 7.1. Each Bank shall submit an invoice to the Counterparty supporting its
computation of any Exposure Fees owed to such Bank with respect to each Fiscal Quarter that has
elapsed and, if the Termination Date has occurred, with respect to the period from the most recent
date through which its Exposure Fees have been invoiced (or the Effective Date, if Exposure Fees
have not previously been invoiced by it) through the Termination Date. The Exposure Fee for each
Bank will be payable in arrears directly to such Bank within ten Business Days following the
receipt of each such invoice.

     SECTION
2.5 Interest. Upon the occurrence and during the continuance of an Event of Default,
each Credit Party agrees to pay, to the fullest extent permitted by law, interest on any amount
payable hereunder that is not paid when due (after the expiration of any applicable grace period),
from the date such amount shall be due until such amount shall be paid in full, payable in arrears
on the date such amount shall be paid in full and on demand, at a rate per annum equal at all times
to 2% per annum above the Base Rate.

     SECTION 2.6 Engineering Reports and Present Value.

     (a) Engineering Reports.

          (i) Prior
to May 1 of each year, the Counterparty agrees to deliver to the PV Determination Agent
and the Banks the December 31 Engineering Report as of the immediately preceding December 31.
Additionally, upon the request of the PV Determination Agent, the Counterparty agrees to deliver to
the PV Determination Agent an Unaudited Report that is the same as such December 31 Engineering
Report, except that such Unaudited Report will be based on the pricing assumptions specified by
the PV Determination Agent.

          (ii) For each Unscheduled Redetermination initiated by the Counterparty pursuant to Section
2.6(e)(i), the Counterparty agrees to deliver to the PV Determination Agent an Unaudited Report, as
of a date reasonably acceptable to the Counterparty and the PV
Determination Agent; provided that
if such Unscheduled Redetermination was initiated pursuant to
Section 2.6(e)(i)(1) and the acquired
Proved Reserves have a fair market value, in the aggregate, equal to or greater than $300 million,
an Acquired Reserves Engineering Report, as of such date, covering the acquired Proved Reserves
must be delivered to the PV Determination Agent with such Unaudited Report. For each Unscheduled
Redetermination initiated by the Required Banks pursuant to Section 2.6(e)(ii), the Counterparty
agrees to deliver to the PV Determination Agent, an Unaudited Report, as of a date reasonably
acceptable to the Counterparty and the PV Determination Agent, covering the Proved Reserves that the
Counterparty desires to have included in the Present Value determination.

25

 

          (iii) Concurrently with the delivery of each Engineering Report, the Counterparty agrees to deliver
to the PV Determination Agent a production report covering the net production of oil and gas of the
Credit Party Entities, which report shall include quantities or volumes of production, realized
product prices, operating expenses, taxes, capital expenditures and such other information as the
PV Determination Agent may reasonably request and covering the one
year period ending on the “as
of” date of the Engineering Report being delivered with such production report.

          (iv) Concurrently with the delivery of each Engineering Report, the Counterparty agrees to deliver
to the PV Determination Agent, a certificate from an Authorized
Officer of the Counterparty that, to
the best of his knowledge and in all material respects, (i) the oil and natural gas reserves
information set forth in such Engineering Report was estimated using generally accepted engineering
and evaluation principles and is reasonable in the aggregate by basin, and any factual information
contained in the reports delivered with such Engineering Report is true and correct, (ii) a Credit
Party Entity owns directly good and defensible title (as defined in Section 4.1(m)) to the Proved
Reserves evaluated in such Engineering Report free of all Liens except for Liens not prohibited by
Section 5.2(a), (iii) except as set forth in the certificate or in the Engineering Report, on a net
basis there are no material (with such materiality determined in relation to the total reserve base
included in such Engineering Report) gas imbalances, take or pay or other prepayments with respect
to the Proved Reserves evaluated in such Engineering Report which would require any Credit Party
Entity to deliver Hydrocarbons at some future time without then or thereafter receiving full
payment therefor, (iv) no Oil and Gas Properties have been disposed by any Credit Party Entity
since the date of the last Present Value determination except as permitted by the terms of this
Agreement or, in any material respect, been destroyed or damaged (except to the extent covered by
insurance and except as set forth in such certificate), (v) attached to the certificate are
statements of each Credit Party’s outstanding Qualifying Hedges and Permitted Hedges (other than
WPX Hedges), which statements shall include for each Qualifying Hedge and each such Permitted Hedge
(a) the termination date, (b) the notional amounts or volumes and the periods covered by such
volumes, and (c) the price to be paid or the basis for calculating the price to be paid by such
Credit Party and the other Person under such Qualifying Hedge or such Permitted Hedge, as the case
may be, for each of the future periods covered by such Qualifying Hedge or such Permitted Hedge, as
the case may be, and (vi) the Other Present Value Obligations Amount on the date of such
certificate is the amount set forth in such certificate.

     (b) During the period from the Effective Date until the first Redetermination Date, the amount of
the Present Value shall be $2,659,047,000.

     (c) The Present Value shall be redetermined from time to time in accordance with Section 2.6(d) by
the PV Determination Agent with the concurrence of the Required Banks. The Present Value shall be
redetermined annually following delivery of each December 31 Engineering Report (each being a
“Scheduled Redetermination”). Additionally,
unscheduled redeterminations of the Present
Value may occur from time to time in accordance with Section 2.6(e) (each being an “Unscheduled
Redetermination”). Any redetermination of the Present Value shall become effective as contemplated
in Section 2.6(f) and shall remain in effect until the next Redetermination Date.

     (d) Upon receipt of an Engineering Report and the other items required by Section 2.6(a) and such
other reports, data and supplemental information as may from time to time be reasonably requested
by the PV Determination Agent, the PV Determination Agent will redetermine a new Present Value. Such
redeterminations will not take into account reserves forecasted to be produced during the next
twelve months and otherwise will be in accordance with the PV Determination Agent’s normal and
customary procedures for evaluating oil and gas reserves and other related assets as such exist at
that particular time using a 9% discount rate (or such other discount rate as the PV Determination
Agent may in good faith elect based on market conditions) and giving effect to all Qualifying
Hedges (but not giving

26

 

effect to (I) any such Qualifying Hedges that have been terminated and as to which the PV
Determination Agent has been notified of such termination sufficiently in advance of such
redetermination, based on the PV Determination Agent’s judgment, to allow it to take such
termination into account or (II) any of the WPX Hedges) in effect on the date as of which the
certificate referred to in Section 2.6(a)(iv) relating to the relevant Engineering Report is given
(or, if such date is not a Business Day, on the next preceding Business Day) and all Qualifying
Hedges entered into after such date if, based on the PV Determination Agent’s judgment, notice of
those Qualifying Hedges has been received sufficiently in advance of such redetermination to allow
it to take such Qualifying Hedges into account; provided that Proved Reserves that are not
proved developed producing reserves (“Non-Producing Reserves”) shall be excluded from such
redeterminations to the extent that inclusion thereof would result in Non-Producing Reserves
constituting more than 25% of the Present Value; provided further that Proved Reserves
attributable to Restricted Interests shall be excluded from such redeterminations to the extent
that inclusion thereof would result in greater than 15% of the Present Value being attributable to
such Restricted Interests; provided further that as to any Collar taken into account in any
such redetermination (A) if the price data used by the PV Determination Agent is higher than the
strike price of the call that constitutes a portion of such Collar, then such strike price and the
notional volume of such call will be used in such redetermination (and the put that constitutes a
portion of such Collar shall not be taken into account), (B) if the price data used by the PV
Determination Agent is lower than the strike price of the put that constitutes a portion of such
Collar, then such strike price and the notional volume of such put will be used in such
redetermination (and the call that constitutes a portion of such Collar shall not be taken into
account), and (C) if the price data used by the PV Determination Agent is (x) equal to or less than
the strike price of the call that constitutes a portion of such Collar and (y) equal to or greater
than the strike price of the put that constitutes a portion of such Collar, then neither such put
nor such call shall be taken into account. The PV Determination Agent, in accordance with its
normal and customary procedures for evaluating oil and gas reserves and other related assets as
such exist at that particular time, may make adjustments to the rates, volumes, prices and other
assumptions used in an Engineering Report. The PV Determination Agent shall propose a new Present
Value and (i) notify the Counterparty of such proposed new Present Value, the PV Determination
Agent’s price assumptions used for such proposed new Present Value and other key assumptions used
by the PV Determination Agent for such proposed new Present Value within 30 days following receipt
by the PV Determination Agent of such Engineering Report and such other items, reports, data and
information in a timely and complete manner and (ii) not less than three Business Days after such
notification to the Counterparty, notify the Banks of such proposal. After having received notice
of such proposal by the PV Determination Agent, each Bank shall have 10 days to agree or disagree
with such proposal. Any failure of a Bank to communicate its approval or disapproval within such ten
day period shall be deemed to be an approval of such proposal. If the Required Banks approve
(including any such deemed approval) the PV Determination Agent’s proposal, then such proposal
shall be the new Present Value. If however, the Required Banks do not approve such proposal within
10 days, then (1) the Required Banks may agree on, and notify the PV Determination Agent of, a
revised Present Value within seven Business Days following
such 10 day period or (2) if the Required Banks fail to so agree or fail to so notify within such
seven Business Day period, such proposal of the PV Determination Agent will be deemed to have been
approved by the Required Banks.

     (e) In addition to Scheduled Redeterminations, (i) the Counterparty may initiate an Unscheduled
Redetermination (1) if the Credit Party Entities have acquired directly Proved Reserves since the
most recent Redetermination Date (or December 31, 2005, if the first Redetermination Date has not
occurred) having a fair market value in the aggregate of $100 million or more, (2) at any time (but
not more often than once per calendar year for requests pursuant to this clause (2)) or (3) if any
Credit Party Entity has sold a volumetric production payment since the most recent date as of which
the Present Value was determined (or, if the first Redetermination Date has not occurred, since
December 31, 2005) at any time before the next date as of which the Present Value is determined
pursuant to any provision hereof other than this clause (3) (but not more often than once per
calendar year for requests pursuant to this

27

 

clause (3)), in each case by notifying the PV Determination Agent and providing an Engineering
Report in accordance with Section 2.6(a), and (ii) the Required Banks may initiate an Unscheduled
Redetermination (1) if Proved Reserves having a fair market value in the aggregate of $100 million
or more have, since the most recent Redetermination Date (or the Effective Date, if the first
Redetermination Date has not occurred), been disposed by the Credit Party Entities (other than in
Permitted Dispositions), destroyed or damaged (except to the extent covered by insurance) or taken
by eminent domain or other governmental action, (2) if Proved Reserves are restated or
recategorized by a Credit Party Entity and the effect thereof is to reduce the Present Value by
$100 million or more in the aggregate or (3) at any time (but not more than once per calendar year
pursuant to this clause (3)), in each case by specifying in writing to the Counterparty the date
(which shall in no event be less than ten Business Days following Counterparty’s receipt of such
writing) on which the Counterparty is to furnish an Engineering Report in accordance with Section
2.6(a).

     (f) The PV Determination Agent shall promptly notify in writing the Counterparty and the Banks of
the new Present Value. Any redetermination of the Present Value shall become effective on the date
written notice thereof is received by the Counterparty.

     (g) If

          (i) since the most recent Redetermination Date, any Hedge that was taken into account in the most
recent determination of the Present Value is terminated prior to its stated expiration date (each,
an “Early Termination Hedge”), and

          (ii) had such Early Termination Hedge and all other Early Termination Hedges terminated since the
most recent Redetermination Date not been taken into account in the most recent determination of
the Present Value, the Present Value would have been at least $100 million more or less than the
Present Value actually determined (for each Early Termination Hedge, the “Relevant Amount”
will be the amount by which the Present Value would have differed if such Early Termination Hedge
had not been taken into account in the most recent determination of the Present Value, with any
such difference that would have increased such Present Value being expressed as a negative number
and any such difference that would have decreased such Present Value being expressed as a positive
number);

then, within 4 Business Days after any Early Termination Hedge is terminated, the PV Determination
Agent will determine, and notify the Counterparty and the Banks of, the Relevant Amount for each
Early
Termination Hedge that has been terminated prior to its stated expiration date since the most
recent
Redetermination Date.

     SECTION 2.7 Present Value Deficiency. If at any time a Present Value Deficiency exists, the
Counterparty shall within three Business Days thereof deliver to the Collateral Agent, for deposit
into the Collateral Account, Acceptable Credit Support in an amount equal to the amount of such
Present Value Deficiency. Each Bank will (i) during the existence of a Present Value Deficiency of
which it has received notice hereunder (and has not received notice pursuant to clause (iii) of the
last sentence of Section 7.1 that such Present Value Deficiency does not exist), pay directly to
the Collateral Agent for deposit into the Collateral Account all payments under any Qualifying
Hedge to which such Bank is a party that would otherwise be paid to the Counterparty, and such
payments will be made without exercise of any offset, defense or counterclaim (except that a Bank
may net payments owed under any Qualifying Hedge to which it is a party against payments owed under
any other Qualifying Hedge to which it is a party and may net payments under the same Qualifying
Hedge), and (ii) by 9:00 a.m. (New York City time) on the Business Day following each day on which
it has made a payment pursuant to clause (i) of this sentence or pursuant to clause (3) of Section
6.1, notify the Counterparty, the Collateral Agent and the Computation Agent of the amount of such
payment. At such time as no Present Value Deficiency

28

 

exists and no Event of Default exists, the Counterparty will be entitled to return (for avoidance
of doubt, “return” includes, without limitation, any delivery of interest accrued on Acceptable
Credit Support) of the Acceptable Credit Support (including appropriate reduction in the amount of
an Acceptable Letter of Credit) in accordance with customary procedures (but in any event within 3
Business Days’ from the date the Collateral Agent determines that no Present Value Deficiency exists
and no Event of Default exists), to the extent that such return (or reduction) will not cause a
Present Value Deficiency; provided that if a Hedge becomes an Early Termination Hedge, then
no such return or reduction will be effected during the period from the date such Hedge becomes an
Early Termination Hedge through and including the earlier of (x) the date that is 4 Business Days
following the date that such Hedge became an Early Termination Hedge and (y) the date on which the
Counterparty receives notice from the PV  Determination Agent of the Relevant Amount for such Early
Termination Hedge; provided further that the Collateral Agent shall not be required to
effect any such return or reduction if the Counterparty has not given the Collateral Agent specific
notice requesting such return or reduction.

     SECTION 2.8 Removal and Addition of Banks. Any Bank (i) that has no Qualifying Hedges
outstanding and (ii) that is neither owed nor owes any obligation to make any payment or delivery
under any Qualifying Hedge may be removed as a party to this Agreement by the Counterparty by ten
Business Days’ notice to such Bank and the Administrative Agent, or may remove itself as a party to
this Agreement by ten Business Days notice to the Counterparty and the Administrative Agent, except
the agreements and obligations of the Counterparty contained in Sections 2.3 and 8.4 (and the
obligations of the Guarantor related thereto) shall continue. The Counterparty shall have the right
to add to this Agreement any new Bank if (i) the senior unsecured long-term Dollar-denominated debt
or deposit obligations of each added Bank is rated at least BBB by S&P and Baa2 by Moody’s, (ii)
following each such addition, the number of Banks does not exceed ten and (iii) all “know your
customer” Governmental Requirements applicable to any Bank or Agent have been met. Each such
addition shall be effected by execution by such Bank and the Counterparty of a New Bank
Agreement, and shall be effective upon receipt by the Administrative Agent and the Computation
Agent of such executed New Bank Agreement.

     SECTION 2.9 Sharing of Payments, Etc. No Bank will be required to share payments, set-offs
or other amounts received by it under any Qualifying Hedge, except that (i) following termination
of all Qualifying Hedges pursuant to clause (2) of Section 6.1 of this Agreement or (ii) if such
termination is not effected pursuant to such clause (2) and the Required Banks elect that this
clause (ii) apply, following termination of all Qualifying Hedges pursuant to the other terms of
the Credit Documents, the Acceptable Credit Support, any amount received pursuant to any
Subordination Agreement and amounts received pursuant to the guaranties set forth in Article IX
will be shared ratably by the Banks (based on the respective amounts of the Obligations then owed
to the Banks and Agents and an amount estimated in good faith by the Collateral Agent to be the
amount of all other Obligations that may arise thereafter as contemplated by Section 5.4 of the
Security Agreement). For avoidance of doubt, this Section 2.9 does not modify the requirement set
forth in the second sentence of Section 2.7 that certain payments be made
without exercise of any offset, defense or counterclaim (except as provided in such sentence).

     SECTION 2.10 Bank Credit Support. Each Bank agrees to deliver, directly to the Collateral
Agent to be held in the Collateral Account (whether or not a Present Value Deficiency exists), all
Bank Credit Support with respect to such Bank, and the Counterparty agrees that such delivery shall
satisfy the requirements of the relevant Qualifying Hedge that such Bank provide such Bank Credit
Support to the Counterparty. Prior to termination of a Qualifying Hedge, the Bank Credit Support
provided by any Bank under such Qualifying Hedge shall be redelivered to such Bank from time to
time to the extent no longer required under such Qualifying Hedge. At the termination of a
Qualifying Hedge (or, in the case of clauses (ii) and (iii) of this sentence, on the second
Business Day next following such termination), any remaining Bank Credit Support provided by a Bank
pursuant to such Qualifying Hedge (or by such Bank or its direct or indirect parent pursuant to an
Acceptable Bank Guaranty) shall be (i) if at such termination

29

 

(A) the Counterparty is entitled to a payment from such Bank and (B) a Present Value Deficiency
exists (or would result from such termination or payment), retained (to the extent of such payment
obligation) in the Collateral Account to secure the Obligations (and such retention shall be deemed
to satisfy such payment obligation to the extent of the amount so retained, which amount in the
case of treasury obligations shall be the principal amount thereof plus interest accrued to the
date of such termination) (“Retained Bank Credit Support”), (ii) if at such termination (A)
the Counterparty is entitled to a payment from such Bank, (B) a Present Value Deficiency does not
exist (and would not result from such termination or payment) and (C) by 5:00 p.m. (New York City
time) on the Business Day next following the date of such termination, the Bank has not made all or
part of such payment and the Counterparty notifies the Collateral Agent of such non-payment by 5:00
p.m. (New York City time) on the second Business Day next following the date of such termination,
delivered by the Collateral Agent to the Counterparty (to the extent of such unpaid payment
obligation), and such delivery shall be deemed to satisfy such unpaid payment obligation to the
extent of the amount so delivered or (iii) otherwise, returned by the Collateral Agent to such
Bank; provided that if a Hedge becomes an Early Termination Hedge, then no action shall be
taken pursuant to clause (i) or clause (ii) of this sentence during the period from the date such
Hedge becomes an Early Termination Hedge through and including the earlier of (x) the date that is
4 Business Days following the date that such Hedge became an Early Termination Hedge and (y) the
date on which the Counterparty receives notice from the PV Determination Agent of the Relevant
Amount for such Early Termination Hedge.

     SECTION 2.11 Collateral Account. The Collateral Agent shall maintain separate sub-accounts
within the Collateral Account in order to keep separate and readily identifiable all Acceptable
Credit Support and Bank Credit Support as follows:

     (i) one such sub-account shall contain only (a) Acceptable Credit Support delivered pursuant to
Section 2.7, (b) Retained Bank Credit Support and (c) all proceeds, payments, collections and other
amounts and rights in respect thereof; and

     (ii) a separate such sub-account shall be maintained for each Bank and shall contain only (a) Bank
Credit Support delivered by such Bank pursuant to Section 2.10 and (b) all proceeds, payments,
collections and other amounts and rights in respect thereof; provided that at the time any
such Bank Credit Support (or proceeds, payments, collections or other amounts or rights in respect
thereof) becomes Retained Bank Credit Support, such Retained Bank Credit Support shall be
transferred to the sub-account referred to in Section 2.11(i).

     Additionally, if the Bank that is the Collateral Agent provides any Bank Credit Support, the
Counterparty will appoint a collateral sub-agent to hold such Bank Credit Support (and proceeds,
payments, collections and other amounts and rights in respect thereof); provided that at
the time any such Bank Credit Support (or proceeds, payments, collections or other amounts or
rights in respect thereof) becomes Retained Bank Credit Support, such Retained Bank Credit Support
shall be transferred to the Collateral Agent for inclusion in the sub-account referred to in
Section 2.11(i). Such collateral sub-agent
(a) shall hold and deal with Bank Credit Support provided by the Collateral Agent on the same terms
as the Collateral Agent holds and deals with other Bank Credit Support, (b) shall have all of the
rights, duties, responsibilities and protections (including rights to indemnities) provided herein
to the Collateral Agent, (c) shall act as agent for the Banks (other than the Bank that is the
Collateral Agent in its capacity as the provider of the Bank Credit Support) and not as agent for
the Counterparty and (d) shall be a financial institution acting through an office in New York City
and shall have senior unsecured long-term Dollar-denominated debt or deposit obligations that are
rated A or higher by S&P and A2 or higher by Moody’s. No Bank shall be required to accept
appointment as a collateral sub-agent

     SECTION 2.12 Use of Collateral; Interest.

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     (a) So long as (i) the Collateral Agent is not in default of any of its obligations under any
Credit Document and (ii) the senior unsecured long-term Dollar-denominated debt or deposit
obligations of the Collateral Agent are rated AA- or higher by S&P and Aa3 or higher by Moody’s,
the Collateral Agent will, notwithstanding Section 9-207 of the New York Uniform Commercial Code,
have the right to sell, pledge, rehypothecate, assign, invest, use, commingle or otherwise dispose
of, or otherwise use in its business any Acceptable Collateral and Bank Credit Support it holds,
free from any claim or right or any nature whatsoever of the Counterparty or any Bank, including
any equity or right of redemption (each a “Permitted Usage”). For purposes of any
obligation to deliver Acceptable Collateral or Bank Credit Support under any Credit Document, the
last sentence of Section 7.1 and any rights or remedies
authorized under any Credit Document, the Collateral Agent will be deemed to continue to hold all Acceptable Collateral and Bank Credit
Support that are the subject of any Permitted Usage until such Acceptable Collateral or Bank Credit
Support is delivered to the Counterparty or a Bank, as the case may be. At such time as (i) the
Collateral Agent is in default of any of its obligations under any Credit Document or (ii) any
senior unsecured long-term Dollar-denominated debt or deposit obligations of the Collateral Agent
are not rated AA- or higher by S&P or not rated Aa3 or higher by Moody’s, the Collateral Agent will
immediately return to the Collateral Account all Acceptable Collateral and Bank Credit Support that
has been the subject of a Permitted Usage and has not been previously returned to the Collateral
Account by the Collateral Agent. Additionally, the Collateral Agent will return Acceptable
Collateral and Bank Credit Support, as the case may be, that are the subject of a Permitted Usage
as may be necessary from time to time to meet any requirement it has under any Credit Document to
return or deliver any Acceptable Collateral or Bank Credit Support. If the Acceptable Collateral or
Bank Credit Support that was the subject of a Permitted Usage (i) was cash, any return pursuant to
this Section 2.12 shall be effected by deposit by the Collateral Agent into the Collateral Account
of cash in an amount equal to the amount of cash that was the subject of such Permitted Usage plus
interest thereon as provided in Section 2.12(b) or (ii) was United States treasury obligations, any
such return shall be effected by deposit by the Collateral Agent into the Collateral Account of
United States treasury obligations that are in all respects (including amount, interest rate and
maturity) the same as the treasury obligations that were the subject of such Permitted Usage. If
any treasury obligations deposited into the Collateral Account mature, the amount of principal and
interest paid in respect thereof shall thereafter be treated as cash for purposes hereof. The
Collateral Agent shall have no obligation to invest any Acceptable Collateral or Bank Credit
Support. Any Permitted Usage shall be solely at the Collateral Agent’s risk.

     (b) If the Counterparty or any Bank (“Depositor”) delivers to the Collateral Agent any
amount of cash, then the Collateral Agent will pay to such Depositor for each day from the date
such amount is so delivered until such amount is redelivered to such Depositor (or delivered to a
Bank or a Counterparty to the extent required pursuant to the terms hereof or of any other Credit
Document) interest on both such amount and on all interest accrued thereon for each preceding day
(or the portion of such amount and such interest that has not been delivered to the Counterparty or
Bank pursuant to the terms of any Credit Document) at a per annum rate equal to the Federal Funds
Rate for such day;
provided that such interest shall not accrue for any period during which the Collateral
Agent does not have the right of Permitted Usage set forth in the first sentence of Section
2.12(a). Interest accrued or paid on any treasury obligations shall be for the account of the
Counterparty or Bank, as the case may be, that delivered such treasury obligations to the
Collateral Agent; provided that interest accruing on Bank Credit Support with respect to
any Bank (whether in the form of cash or treasury obligations) shall accrue (i) for the account of
such Bank until such date, if any, as such Bank Credit Support becomes Retained Bank Credit Support
and (ii) on and after such date, for the account of the Counterparty. Accrued interest in respect
of any Acceptable Collateral or Bank Credit Support shall constitute additional Acceptable
Collateral or Bank Credit Support, as the case may be, and be subject to the terms of the Credit
Documents to the same extent as the Acceptable Collateral or Bank Credit Support, as the case may
be, in respect of which such interest accrued.

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ARTICLE III

CLOSING

     SECTION 3.1 Payment of Fees and Documents. On or before the date hereof, the Counterparty
agrees to (i) pay to the Administrative Agent, for the account of the respective Agents and Joint
Lead Arrangers, all accrued fees of the Agents and the Joint Lead Arrangers to the extent required
to be paid hereunder (or to the extent otherwise agreed to by the Administrative Agent and the
Counterparty) and presented for payment, and (ii) deliver, or cause to be delivered, to the Banks
counterparts of this Agreement duly executed by the Counterparty and the Guarantor and the
following:

     (a) Certified copies of (1) the resolutions of the Board of Directors, or an authorized committee
thereof or other relevant Person, of each Credit Party authorizing the execution of this Agreement
and each other Credit Document to which such Credit Party is a party and (2) all other documents,
in each case evidencing any necessary company action, if any, with respect to each Credit Document
and the transactions thereunder and hereunder.

     (b) A certificate of the Secretary or an Assistant Secretary of each Credit Party certifying the
name and true signature of an officer of such Credit Party or other relevant Person authorized to
sign each Credit Document to which it is a party and the other documents to be delivered by it
hereunder and thereunder.

     (c) A copy of a certificate of the Secretary of State of the jurisdiction of formation of, or of an
Authorized Officer or other representative of, each Credit Party, dated reasonably near the date
hereof, certifying (i) as to a true and correct copy of the charter or other organizational
documents of such Credit Party, and each amendment thereto on file in such Secretary’s office and
(ii) that such Credit Party has paid all franchise taxes due prior to the date of such certificate.

     (d) Opinions of each of (i) an in-house counsel of the Counterparty or of any of its affiliates,
substantially in the form of Exhibit A and (ii) Gibson, Dunn & Crutcher LLP, counsel to the Credit
Parties, substantially in the form of Exhibit B.

     (e) A certificate of each Credit Party (or of its representative), signed on behalf of such Credit
Party by an Authorized Officer thereof or signed by another representative, dated as of the date
hereof (the statements made in which certificate shall be true on and as of the date hereof),
certifying as to (i) the absence of any amendments to the charter or other organizational documents
of such Credit Party not included in the certificate referred to in clause (c) above, (ii) a true
and correct copy of the bylaws, if any, of such Credit Party as in effect on the date on which the
resolutions referred to in clause (a) were adopted and on the date hereof, (iii) the due
incorporation or formation and good standing and valid existence of such Credit Party as an entity
organized under the laws of the jurisdiction of its incorporation or organization, (iv) the truth,
in all material respects, of the representations and warranties of such Credit Party and its
Subsidiaries contained in this
Agreement and the Credit Documents delivered on or before the date hereof as though made on and as
of the date hereof other than any such representations or warranties that, by their terms, refer to
a specific date other than the date hereof, in which case as of such specific date and (v) the
absence of any event occurring and continuing, or resulting from, the consummation of the
transactions hereunder or pursuant to the Credit Documents delivered on or before the date hereof,
that constitutes a Present Value Deficiency, a Pro Forma Present Value Deficiency, a Default or an
Event of Default.

     (f) A certificate of an Authorized Officer of the Counterparty setting forth all Hedges to which
any Credit Party or any Subsidiary of a Credit Party is a party on the Effective Date.

32

 

     (g) The December 31 Engineering Report for 2005 comporting with the requirements of Section
2.6(a)(i), the related report contemplated by Section 2.6(a)(iii), and the certificate contemplated
by Section 2.6(a)(iv).

     (h) An ISDA Master Agreement for each Bank listed on the signature pages hereof, duly executed by
the Counterparty.

     (i) Executed subordination agreements, each in substantially the form of Exhibit F, (i) among the
Administrative Agent, WPC and the Counterparty specifying WPC as the “Subordinated Creditor” and
the Counterparty as the “Debtor”, (ii) among the
Administrative Agent, WPC and the Counterparty
specifying the Counterparty as the “Subordinated Creditor” and WPC as the “Debtor” and (iii) among
the Administrative Agent, the Credit Parties and one or more Non-Credit Party TWC Entities
specifying such Non-Credit Party TWC Entities as the “Subordinated Creditors” and the Credit
Parties as the “Debtors”.

     (j) A Security Document duly executed by the Counterparty.

     (k) Recent lien searches in respect of the Counterparty in all relevant jurisdictions.

     (l) A certificate of an Authorized Officer of each Credit Party certifying that the balance sheets
and statements of income and cash flows that are referred to in Section 4.1(e) fairly present in
all material respects the combined financial position of the Credit Party Entities as of December
31, 2005 and September 30, 2006 and the combined results of operations of the Credit Party Entities
for the year and nine months, respectively, then ended.

     SECTION 3.2 Effectiveness of Agreement. The Administrative Agent shall notify the
Counterparty when it reasonably believes that this Agreement has become effective, and such notice
shall be conclusive and binding on all parties to the Credit Documents (provided that such
effectiveness shall not be conditioned on such notice).

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     SECTION 4.1 Representations and Warranties of the Credit Parties. Each Credit Party, with
respect to itself and its Subsidiaries only, represents and warrants, on the date hereof and on
each date that a Qualifying Hedge is entered into, as follows:

     (a) Each Credit Party is duly organized or validly formed, validly existing and (if applicable) in
good standing under the laws of the State of Delaware and has all corporate, limited partnership or
limited liability company powers and all governmental licenses, authorizations, certificates,
consents and approvals required to carry on its business as now conducted in all material respects,
except where failure to be in good standing or to have those licenses, authorizations,
certificates, consents and approvals
could not reasonably be expected to have a Material Adverse Effect. Each Subsidiary of each Credit
Party is duly organized or validly formed, validly existing and (if applicable) in good standing
under the laws of its jurisdiction of incorporation or formation, except where the failure to be so
organized or formed, existing and in good standing could not reasonably be expected to have a
Material Adverse Effect. Each Subsidiary of a Credit Party has all corporate, limited partnership
or limited liability company powers and all governmental licenses, authorizations, certificates,
consents and approvals required to carry on its business as now conducted in all material respects,
except for those licenses, authorizations, certificates,

33

 

consents and approvals the failure to have which could not reasonably be expected to have a
Material Adverse Effect.

     (b) The execution, delivery and performance by each Credit Party of the Credit Documents to which
it is shown as being a party and the consummation of the transactions contemplated thereby are
within such Credit Party’s corporate, limited partnership or limited liability company powers, have
been duly authorized by all necessary corporate, limited partnership or limited liability company
action, do not contravene (i) such Credit Party’s charter, by-laws or formation agreement or (ii)
law or any restriction under any material agreement binding on or affecting such Credit Party and
will not result in or require the creation or imposition of any Lien prohibited by this Agreement.

     (c) No material authorization or approval or other action by, and no notice to or filing with, any
Governmental Authority is required for the due execution, delivery and performance by any Credit
Party of any Credit Document to which it is a party, or the consummation of the transactions
contemplated thereby.

     (d) Each Credit Document has been duly executed and delivered by each appropriate Credit Party, and
is the legal, valid and binding obligation of each such Credit Party, enforceable against each such
Credit Party, in accordance with its terms, except as such
enforceability may be limited by any
applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’
rights generally and by general principles of equity.

     (e) The combined balance sheets of the Credit Party Entities as at December 31, 2005 and September
30, 2006, and the related combined statements of income and cash flows of the Credit Party Entities
for the fiscal year ended December 31, 2005, and the nine months ended September 30, 2006, copies
of which have been furnished to each Bank, have been prepared in accordance with GAAP and fairly
present in all material respects the combined financial condition of the Credit Party Entities as
at such dates and the combined results of operations of the Credit Party Entities for the periods
indicated, subject, in the case of the September 30, 2006 financial statements, to normal year-end
adjustments and subject, in the case of both sets of financial statements, to the omission of
footnotes. As of the date hereof only, from December 31, 2005 to the date of this Agreement, there
has been no material adverse change in the business, condition (financial or otherwise),
operations, properties or prospects of the Credit Party Entities (other than Non-Recourse
Subsidiaries), taken as a whole.

     (f) There is, as to each Credit Party, no pending or, to the knowledge of such Credit Party as of
the date hereof only, threatened action or proceeding affecting such Credit Party or any Subsidiary
of such Credit Party before any court, governmental agency or arbitrator, (i) which could
reasonably be expected to have a Material Adverse Effect or (ii) which purports to affect the
legality, validity, binding effect or enforceability of any Credit Document.

     (g) No Credit Party is an “investment company” or a company “controlled” by an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

     (h) No Termination Event (ERISA) has occurred or is reasonably expected to occur with respect to
any Plan that could reasonably be expected to have a Material Adverse Effect. No Credit Party nor
any Subsidiary or ERISA Affiliate of any Credit Party has received any notification that any
Multiemployer Plan is in reorganization or has been terminated, within the meaning of Title IV of
ERISA that could reasonably be expected to have a Material Adverse Effect, and no Credit Party is
aware of any reason to expect that any Multiemployer Plan is to be in reorganization or to be
terminated within the meaning of Title IV of ERISA that would have a Material Adverse Effect.

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     (i) Except as disclosed in writing by the Counterparty to the Banks and the Administrative Agent
after the date hereof and approved in writing by the Required Banks, each Credit Party and its
Subsidiaries are in compliance with all applicable Environmental Laws, except as could not
reasonably be expected to have a Material Adverse Effect. Except as disclosed in writing by any
Credit Party to the Banks and the Administrative Agent after the date hereof and approved in
writing by the Required Banks, the aggregate contingent and non-contingent liabilities of each
Credit Party and its Subsidiaries (other than those reserved for in accordance with GAAP and
excluding liabilities to the extent covered by insurance if the insurer has confirmed that such
insurance covers such liabilities or which such Credit Party reasonably expects to recover from
ratepayers) which to such Credit Party’s knowledge are reasonably expected to arise in connection
with (i) the requirements of any Environmental Law or (ii) any obligation or liability to any
Person in connection with any Environmental matters (including any release or threatened release
(as such terms are defined or used in the Comprehensive Environmental Response, Compensation and
Liability Act of 1980) of any Hazardous Waste, Hazardous Substance, other waste, petroleum or
petroleum products into the Environment) could not reasonably be expected to have a Material
Adverse Effect. Each Credit Party and its Subsidiaries holds, or has submitted a good faith
application for all Environmental Permits (none of which have been terminated or denied) required
for any of its current operations or for any property owned, leased, or otherwise operated by it;
and is, and within the period of all applicable statutes of limitation has been, in compliance with
all of its Environmental Permits, except where the failure to comply with the matters set forth in
this sentence, in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

     (j) No Default or Event of Default has occurred and is continuing. After giving effect to all
Qualifying Hedges outstanding or to be entered into on any date this representation is made, no
Present Value Deficiency exists and no Default or Event of Default would result therefrom.

     (k) As of the date hereof only, after giving effect to the Credit Documents and each transaction
thereunder (including each Hedge), each Credit Party, individually and together with its
Subsidiaries, is Solvent.

     (l) As of the date hereof only, none of the reports, financial statements, certificates or other
written information furnished by or on behalf of any Credit Party to any Agent or any Bank on or
prior to the date hereof (as modified or supplemented by other information so furnished on or prior
to the date hereof), taken as a whole, contains any material misstatement of fact or omits to state
any material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not materially misleading, provided that, with respect to any
projected financial information, the Credit Parties represent only that such information was
prepared in good faith based upon assumptions believed by the Credit Parties to be reasonable at
the time (it being recognized, however, that projections as to future events are not to be viewed
as facts and that the actual results during the period or periods covered by any projections may
materially differ from the projected results). None of the reports, financial statements,
certificates or other written information furnished by or on behalf of any Credit Party to any
Agent or any Bank after the date hereof (as modified or supplemented by other information so
furnished after the date hereof), taken as a whole, contains any material misstatement of fact or
omits to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not materially misleading.

     (m) Except as set out in the most recent certificate delivered pursuant to Section 3.1(g) or
2.6(a)(iv), each Credit Party and its Subsidiaries has good and defensible title to its material
Oil and Gas
Properties, free and clear of all Liens except Liens not prohibited by Section 5.2(a). As used in
this
Agreement, “good and defensible title” to Oil and Gas Properties shall be based on the standard
that a
prudent Person engaged in the business of ownership, development and operation of Oil and Gas
Properties where such Oil and Gas Properties are located with knowledge of all of the facts and
their legal

35

 

bearing would be willing to accept as good and defensible title. Except as set forth in the most
recent certificate delivered pursuant to Section 3.1(g) or 2.6(a)(iv), subject to the Liens not
prohibited by Section 5.2(a) and subject to permitted sales under this Agreement, the Credit
Parties own the net interests in production attributable to the Hydrocarbon Interests reflected in
the most recently delivered Engineering Report in all material respects and the ownership of such
Properties shall not in any material respect obligate (other than obligations entered into in the
ordinary course of business) any Credit Party or any Subsidiary to bear the costs and expenses
relating to the maintenance, development and operation of any such Property in an amount in excess
of the working interest of such Property set forth in the most recently delivered Engineering
Report. All factual information contained in the most recently delivered Engineering Report is true
and correct in all material respects as of the date of such Engineering Report.

     (n) All leases and agreements necessary for the conduct of the business of each Credit Party and
its Subsidiaries are valid and subsisting and in full force and effect and there exists no default
that if not cured could lead to a right to terminate or event or circumstance which with the giving
of notice or the passage of time or both would give rise to such a default under any such lease or
agreement, except in either case as would not reasonably be expected to have a Material Adverse
Effect.

     (o) The rights, Properties and other assets presently owned, leased or licensed by each Credit
Party and its Subsidiaries including all easements and rights of way, include all rights,
Properties and other assets necessary to permit each Credit Party and its Subsidiaries to conduct
their business in all material respects in the same manner as their business has been conducted
prior to the Effective Date.

     (p) All of the assets and Properties of each Credit Party and its Subsidiaries which are reasonably
necessary for the operation of their business are in good working condition for their current use
and are maintained in accordance with business standards of a reasonably prudent operator where
such assets and Properties are located, except in either case as would not reasonably be expected
to have a Material Adverse Effect.

     (q) Each representation made by the Counterparty in a Hedge Document was true and correct in all
material respects at the time made.

     (r) The Counterparty has delivered to each Bank a copy of each executed amendment, waiver or
modification of, and each consent pertaining to, this Agreement or any Security Document.

ARTICLE V

COVENANTS OF THE CREDIT PARTIES

     SECTION 5.1 Affirmative Covenants. So long as any Qualifying Hedge or any obligation to
make any payment or delivery under any Qualifying Hedge shall remain outstanding, each Credit Party
will, unless the Required Banks shall otherwise consent in
writing:

     (a) Compliance with Laws, Etc. Comply, and cause each of its Material Subsidiaries to
comply, with all applicable laws, rules, regulations and orders, including ERISA and all
Environmental Laws, such compliance to include, without limitation, the payment and discharge
before the same become delinquent of all taxes, assessments and governmental charges or levies
imposed upon it or any of its Material Subsidiaries or upon any of its property or any property of
any of its Material Subsidiaries, and all lawful claims which, if unpaid, would become a Lien upon
any property of it or any of its Material Subsidiaries (except where failure to comply could not
reasonably be expected to have a Material Adverse Effect); provided that no Credit Party
nor any Subsidiary of a Credit Party shall be required to pay any such tax, assessment, charge,
levy or claim which is being contested in good faith and by proper

36

 

proceedings and with respect to which reserves in conformity with GAAP, if required by GAAP,
have been provided on the books of such Credit Party or such Subsidiary, as the case may be.

     (b) Reporting Requirements. Furnish to the Administrative Agent (in the case of clauses (i)
through (ix) and clause (xii) of this Section 5.1(b)), to the Computation Agent (in the case of
clause (x) of this Section 5.1(b)), to the Collateral Agent
(in the case of clause (xi) of this
Section 5.1(b)) and to the PV Determination Agent (in the case of clause (xiii) of this Section
5.1(b)):

          (i) as soon as possible and in any event within five Business Days after an
Authorized Officer of such Credit Party obtains knowledge of the occurrence of any Default or Event
of Default, continuing on the date of such statement, a statement of an Authorized Financial Officer
of such Credit Party setting forth the details of such Default or Event of Default and the actions, if any,
which such Credit Party has taken and proposes to take with respect thereto;

          (ii) in the case of the Counterparty, as soon as available and in any event not later than 60 days
after the end of each of the first three Fiscal Quarters of each Fiscal Year of the Counterparty,
(1) the unaudited combined balance sheet of the Credit Party Entities as of the end of such Fiscal
Quarter and the unaudited combined statements of income and cash flows of the Credit Party Entities
for the period commencing at the end of the previous year and ending with the end of such Fiscal
Quarter, all in reasonable detail and duly certified by an Authorized Financial Officer of the
Counterparty as fairly presenting in all material respects the combined financial condition of the
Credit Party Entities as of the end of such Fiscal Quarter and the combined results of operations
of the Credit Party Entities for such period and (2) a certificate of an Authorized Financial
Officer of the Counterparty stating that he has no knowledge that a Default or Event of Default has
occurred and is continuing or, if a Default or Event of Default has occurred and is continuing, a
statement as to the nature thereof and the action, if any, which the Counterparty proposes to take
with respect thereto;

          (iii) in the case of the Counterparty, as soon as available and in any event not later than 105
days after the end of each Fiscal Year of the Counterparty, (1) the unaudited combined balance
sheet of the Credit Party Entities as of the end of such Fiscal Year and the unaudited combined
statements of income and cash flows of the Credit Party Entities for such Fiscal Year, in each case
prepared in accordance with GAAP and duly certified by an Authorized Financial Officer of such
Credit Party as fairly presenting in all material respects the combined financial condition of the
Credit Party Entities as of the end of such Fiscal Year and the combined results of operations of
the Credit Party Entities for such Fiscal Year and (2) a certificate of an Authorized Financial
Officer of the Counterparty stating that he has no knowledge that a Default or Event of Default has
occurred and is continuing, or if a Default or Event of Default has occurred and is continuing, a
statement as to the nature thereof, and the action, if any, which the Counterparty proposes to take
with respect thereto;

          (iv) such other information (other than projections) respecting the business or properties, or the
condition or operations, financial or otherwise, of such Credit Party or any of its Subsidiaries as
any Bank through the Administrative Agent may from time to time
reasonably request;

          (v) promptly after the sending or filing thereof, copies of all final reports and final
registration statements which such Credit Party or any Subsidiary of such Credit Party files with
the Securities and Exchange Commission or any national securities exchange; provided that,
if such reports and registration statements are readily available on-line through EDGAR, such
Credit Party or Subsidiary shall not be obligated to furnish copies thereof;

          (vi) as soon as possible and in any event within 30 Business Days after such Credit Party or any
Subsidiary or ERISA Affiliate of such Credit Party knows or has reason to know that any

37

 

Termination Event (ERISA) with respect to any Plan has occurred or is reasonably expected to occur
that could reasonably be expected to have a Material Adverse Effect, a statement of an Authorized
Financial Officer of such Credit Party describing such Termination Event (ERISA) and the action, if
any, which such Credit Party proposes to take with respect thereto;

          (vii) promptly and in any event within 25 Business Days after receipt thereof by such
Credit Party or any ERISA Affiliate of such Credit Party, copies of each notice received by such
Credit Party or any ERISA Affiliate of such Credit Party from the PBGC stating its intention to terminate
any Plan or to have a trustee appointed to administer any Plan;

          (viii) promptly and in any event within 25 Business Days after receipt thereof by such Credit Party
or any ERISA Affiliate of such Credit Party from the sponsor of a Multiemployer Plan, a copy of
each notice received by such Credit Party or any ERISA Affiliate of such Credit Party concerning
(A) the imposition of a Withdrawal Liability by a Multiemployer Plan, (B) the determination that a
Multiemployer Plan is, or is expected to be, in reorganization within the meaning of Title IV of
ERISA, (C) the termination of a Multiemployer Plan within the meaning of Title IV of ERISA, or (D)
the amount of liability incurred, or expected to be incurred, by such Credit Party or any ERISA
Affiliate of such Credit Party in connection with any event described in clause (A), (B) or (C)
above that, in the aggregate, could reasonably be expected to have a
Material Adverse Effect;

          (ix) within five Business Days after the occurrence of any event that would permit the Required
Banks to initiate an Unscheduled Redetermination pursuant to
Section 2.6(e)(ii)(1) or Section
2.6(e)(ii)(2), (a) notice of such event and (b) if such event was a Transfer referred to in Section
5.2(l), a certificate of an Authorized Officer of the Counterparty certifying that the Credit
Parties are in compliance with Section 5.2(1);

          (x) no later than 5:00 p.m. (central time) on each Business Day, (i) a report in the form of
Exhibit G setting forth (A) the Other Present Value Obligations Amount as of the close of such
Business Day, (B) as to each Qualifying Hedge, the information contemplated by Exhibit G as of the
close of such Business Day, other than the name of the Bank party thereto and (C) the aggregate
amount referred to in clause (ii) of the definition herein of Aggregate Net MTM Exposure as of the
close of such Business Day and (ii) a report setting forth, as to each Hedge referred to in Section
5.2(c)(i)(b) or 5.2(c)(i)(c), all of the terms thereof and all amounts owed thereunder as of the
close of such Business Day;

          (xi) no later than 5:00 p.m. (central time) on each Business Day, a report in the form of Exhibit
L, identifying for each Qualifying Hedge in effect as of the close of such Business Day the name of
the Bank that is (or a Designated Affiliate of which is) a party thereto;

          (xii) within
five Business Days after any disposition of Proved Reserves by a Credit Party to a
Subsidiary of a Credit Party, if the sum of (a) the fair market value of such Proved Reserves
plus (b) the fair market value of all other Proved Reserves disposed by a Credit Party to a
Subsidiary of a Credit Party since the most recent Redetermination Date (or the Effective Date, if
the first Redetermination Date has not occurred) would equal or exceed $100 million, a brief
description of such disposition; and

          (xiii) immediately upon any Hedge becoming an Early Termination Hedge, notice of such event and a
copy of such Hedge.

     (c) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to maintain,
insurance with responsible and reputable insurance companies or associations in such amounts and

38

 

covering such risks as is usually carried by companies engaged in similar businesses and owning
similar properties in the same general areas in which such Credit Party or such Subsidiaries
operate; provided that such Credit Party or any such Subsidiary may self-insure to the extent and
in the manner normal for companies of like size, type and financial
condition, provided further
that any insurance required by this Section 5.1(c) may be maintained by TWC on behalf of the Credit
Parties and their Subsidiaries.

     (d) Preservation of Existence, Etc. Preserve and maintain, and cause each of its Material
Subsidiaries to preserve and maintain, its existence as a corporation or other Business Entity,
rights and franchises in the jurisdiction of its incorporation or formation, and qualify and remain
qualified, and cause each Material Subsidiary to qualify and remain qualified, as a foreign entity
in each jurisdiction in which qualification is necessary or desirable in view of its business and
operations or the ownership of its properties, except (i) in the case of any Material Subsidiary of
such Credit Party (other than another Credit Party), where the failure of such Material Subsidiary
to so maintain its existence could not reasonably be expected to have a Material Adverse Effect,
(ii) where the failure to preserve and maintain such rights and franchises (other than existence)
or to so qualify and remain qualified could not reasonably be expected to have a Material Adverse
Effect, and (iii) such Credit Party and its Material Subsidiaries may consummate any merger or
consolidation permitted pursuant to Section 5.2(d) and other dispositions permitted hereunder.

     (e) Oil and Gas Properties. Each Credit Party will and will cause each of its Subsidiaries
to, at its own expense, (i) operate, and cause each of its Subsidiaries to operate, its Oil and Gas
Properties or cause such Oil and Gas Properties to be operated in accordance with such Credit
Party’s or its Subsidiaries’, as the case may be, practices on the Effective Date or in accordance
with the practices of the industry and in compliance with all applicable contracts and agreements
and in compliance in all respects with all requirements of any Governmental Authority, except where
the failure to do so could not reasonably be expected to result in a Material Adverse Effect; and
(ii) do or cause to be done all things reasonably necessary to preserve and keep in good repair and
working order (ordinary wear and tear excepted) all of its Oil and Gas Properties and other
material Properties including all equipment, machinery and facilities, except to the extent a
portion of such Properties is no longer capable of producing Hydrocarbons in economically
reasonable amounts or where the failure to do so could not reasonably be expected to result in a
Material Adverse Effect. Each Credit Party will and will cause each of its Subsidiaries to
promptly: (i) pay and discharge, or make reasonable and customary efforts to cause to be paid and
discharged, all delay rentals accruing under the leases or other agreements affecting or pertaining
to its Oil and Gas Properties, except where the failure to do so could not reasonably be expected
to result in a Material Adverse Effect, (ii) perform or make reasonable and customary efforts to
cause to be performed the obligations required by each and all of the assignments, deeds, leases,
sub-leases, contracts and agreements affecting its interests in its Oil and Gas Properties and
other material Properties, except where the failure to do so could not reasonably be expected to
result in a Material Adverse Effect, (iii) do all other things necessary to keep unimpaired, except
for Liens not prohibited by Section 5.2(a), its rights with respect thereto and prevent any
forfeiture thereof or a default thereunder, except where the failure to do so could not reasonably
be expected to result in a Material Adverse Effect and (iv) maintain all rights of way, easements,
grants, privileges, licenses, certificates, and permits necessary for the use of any Oil and Gas
Property, the failure of which to maintain could reasonably be expected to result in a Material
Adverse Effect.

     (f) Inspection Rights. Permit, and cause each of its Material Subsidiaries to permit, any
representatives designated by the Administrative Agent or the Required Banks, upon reasonable prior
notice, at the Banks’ expense (with each Bank to pay its Ratable Portion of such expense) so long
as no Event of Default exists and no Present Value Deficiency exists and at the Counterparty’s
expense during the continuance of an Event of Default or a Present Value Deficiency, to visit and
inspect the properties of such Credit Party or any Material Subsidiary of such Credit Party with an
Authorized Officer of a

39

 

Credit Party present, to examine and make extracts from its books and records, and to discuss its
affairs, finances and condition with its officers, all at such reasonable times and as often as
reasonably requested but no more frequently than quarterly so long as no Event of Default exists
and no Present Value Deficiency exists.

     (g) Payment of Obligations. Pay, and cause each of its Material Subsidiaries to pay, before
the same shall become delinquent or in default, all obligations that, if not paid, could reasonably
be expected to have a Material Adverse Effect, except where (a) the validity or amount thereof is
being contested in good faith by appropriate proceedings and (b) such Credit Party or such
Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with
GAAP.

     (h) Books and Records. Keep, and cause each of its Subsidiaries to keep, books of record
and account in accordance with GAAP.

     SECTION 5.2 Negative Covenants. So long as any Qualifying Hedge or any obligation to make
any payment or delivery under any Qualifying Hedge shall remain outstanding, no Credit Party will,
without the written consent of the Required Banks (it being understood that each of the permitted
exceptions to each of the covenants in this Section 5.2 is in addition to, and not overlapping
with, any other of such permitted exceptions to such covenant, except to the extent expressly
provided therein):

     (a) Liens, Etc. Create, assume, incur or suffer to exist, or permit any of its Subsidiaries
(other than Non-Recourse Subsidiaries) to create, assume, incur or suffer to exist, any Lien on or
in respect of any of its property, whether now owned or hereafter acquired, in each case to secure
or provide for the payment of any Debt or Specified Obligation;
provided that notwithstanding the
foregoing, the Credit Parties or any of their Subsidiaries may create, incur, assume or suffer to
exist General Permitted Liens securing obligations of any Person and Limited Permitted Liens.

     (b) Other Obligations. Create, incur, assume or permit to exist, or permit any of its
Subsidiaries to create, incur, assume or permit to exist, any Other Present Value Obligation if,
after giving effect thereto, the Other Present Value Obligations Amount would exceed $250,000,000.

     (c) Hedges. Enter into, or permit any Subsidiary to, enter into (i) any Hedge, except (a)
Qualifying Hedges, (b) Permitted Hedges and (c) Hedges entered into in the ordinary course of
business in order to effectively cap, collar or exchange interest rates (from fixed to floating
rates, from one floating rate to another floating rate or otherwise) with respect to any
interest-bearing liability or investment of such Credit Party or any Subsidiary, (ii) any Hedge
against any change in the price of natural gas if after giving effect to such Hedge, more than 70%
(on a volumetric basis) of Forecasted Annual Production of natural gas for the year in which such
Hedge is entered into or for any of the three subsequent calendar years would be covered by Hedges
to which any Credit Party Entity is a party, or (iii) any Hedge against any change in the price of
oil if after giving effect to such Hedge, more than 70% (on a volumetric basis) of Forecasted
Annual Production of oil for the year in which such Hedge is entered into or for any of the three
subsequent calendar years would be covered by Hedges to which any Credit Party Entity is a party.
For purposes of any Collar, the volume hedged will be the notional volume of the put that
constitutes a portion of such Collar, and the call that constitutes a portion of such Collar shall
not be taken into account. Until the delivery of the first December 31 Engineering Report delivered
after the Effective Date, the Forecasted Annual Production for oil and natural gas shall be as
follows for the following years:

40

 

	 	 	 	 	 	 	 	 	 
	Year	 	Oil	 	Natural Gas
	2007
	 	0.753 MBO/day	 	841 MMcf/day
	2008
	 	0.866 MBO/day	 	914 MMcf/day
	2009
	 	0.713 MBO/day	 	774 MMcf/day
	2010
	 	0.559 MBO/day	 	634 MMcf/day

     (d) Merger and Sale of Assets. Merge or consolidate with or into any other Person, or
sell, lease or otherwise transfer all or substantially all of its assets, except that this Section
5.2(d) shall not prohibit any merger or consolidation (i) by any Credit Party with any Person that
is not a Credit Party, if (A) such Credit Party is the surviving entity, (B) at the time of such
merger or consolidation, no Event of Default exists and no Present Value Deficiency exists and (C)
immediately after giving effect thereto, no Event of Default would exist and no Pro Forma Present
Value Deficiency would result or (ii) by any Credit Party with the other Credit Party, if (A) the
Counterparty is the surviving entity, (B) at the time of such merger or consolidation, no Event of
Default exists and no Present Value Deficiency exists and (C) immediately after giving effect
thereto, no Event of Default would exist and no Pro Forma Present
Value Deficiency would result.

     (e) Agreements to Restrict Certain Transfers. Enter into or suffer to exist, or permit any
of its Subsidiaries to enter into or suffer to exist, any consensual encumbrance or consensual
restriction on its ability or the ability of any of its Subsidiaries (i) to pay, directly or
indirectly, dividends or make any other distributions in respect of its Equity Interests or pay
any Debt or other obligation owed, in any case, to a Credit Party or to any Subsidiary of any
Credit Party or (ii) to make loans or advances to a Credit Party or any Subsidiary thereof, except
(1) encumbrances and restrictions on any Subsidiary that is not a Material Subsidiary, (2) those
encumbrances and restrictions existing on May 3, 2004, and other customary encumbrances and
restrictions existing after May 3, 2004 that are not more restrictive in any material respect,
taken as a whole, than the encumbrances and restrictions existing on May 3, 2004 (provided
that the application of any such restrictions and encumbrances to additional Subsidiaries not
subject thereto on May 3, 2004 shall not be deemed to make such restrictions and encumbrances more
restrictive), (3) encumbrances or restrictions on any Non-Recourse Subsidiary, including those
arising in connection with Non-Recourse Debt, (4) encumbrances or restrictions existing under or by
reason of (a) applicable law (including rules, regulations and agreements with regulatory
authorities), (b) any agreement or instrument in effect at the time a Person is acquired by a
Credit Party or any Subsidiary of a Credit Party, so long as such agreement was not entered into in
contemplation of such acquisition, (c) any agreement for the sale or other disposition of a
Subsidiary of a Credit Party that restricts distributions by that Subsidiary pending its sale or
other disposition or (d) provisions with respect to distributions of assets or property in joint
venture agreements, asset sale agreements, stock sale agreements and other similar agreements;
provided that such encumbrances or restrictions apply only to the assets or property
subject to such joint venture, asset sale, stock sale or similar agreement or to the assets or
property being sold, as the case may be, and (5) encumbrances or restrictions existing under or by
reason of Limited Permitted Liens or General Permitted Liens securing debt otherwise permitted to
be incurred under this Section 5.2 that limit the right of the debtor to dispose of the assets
subject to such Limited Permitted Liens or General Permitted Liens.

     (f) Contingent Obligations. Create, incur, assume or permit to exist, or permit any of its
Subsidiaries to create, incur, assume or permit to exist, any Contingent Obligation, except (i)
Other

41

 

Present Value Obligations permitted by Section 5.2(b), (ii) Hedges permitted by Section 5.2(c),
(iii) Contingent Obligations created by the Credit Documents, (iv) Contingent Obligations incurred
in the ordinary course of business, (v) Contingent Obligations with respect to Other Present Value
Obligations or letters of credit backing any Qualifying Hedge and (vi) Contingent Obligations that
are, in the aggregate, not material to the Credit Parties and their Subsidiaries, taken as a whole.

     (g) Compliance with ERISA. (i) Terminate, or permit any ERISA Affiliate of such Credit
Party to terminate, any Plan so as to result in any material liability of such Credit Party, any
Material Subsidiary of such Credit Party or any such ERISA Affiliate to the PBGC, if such material
liability of such ERISA Affiliate could reasonably be expected to have a Material Adverse Effect or
(ii) permit to occur any Termination Event (ERISA) with respect to a Plan that would have a
Material Adverse Effect.

     (h) Transactions with Related Parties. Make any sale to, make any purchase from, extend
credit to, make payment for services rendered by, or enter into any other transaction with, or
permit any Subsidiary of such Credit Party to make any sale to, make any purchase from, extend
credit to, make payment for services rendered by, or enter into any other transaction with, any
Related Party of such Credit Party or of such Subsidiary, unless as a whole such sales, purchases,
extensions of credit, rendition of services and other transactions are (at the time such sale,
purchase, extension of credit, rendition of services or other transaction is entered into) on terms
and conditions reasonably fair in all material respects to such Credit Party or such Subsidiary in
the good faith judgment of such Credit Party; provided that the following items will not be deemed
to be subject to the provisions of this Section 5.2(h):
(i) declaring or paying any dividend or distribution or purchasing, redeeming, retiring, defeasing
or otherwise acquiring for value any Equity Interests, in each case not otherwise prohibited
hereunder, (ii) any agreement, instrument or arrangement as in effect on the date hereof or any
amendment thereto or any transaction contemplated thereby (including pursuant to any amendment
thereto) or in any replacement agreement thereto so long as any such amendment or replacement
agreement is not more disadvantageous to the Banks in any material respect than the original
agreement as in effect on the date hereof as determined in good faith by an Authorized Financial
Officer of such Credit Party, (iii) (a) corporate sharing agreements among a Credit Party and its
Subsidiaries with respect to tax sharing and general overhead and other administrative matters and
(b) any other intercompany arrangements disclosed or described in TWC’s report on Form 10-K for the
year ended December 31, 2005 (including the exhibits attached to each), all as in effect on
December 31, 2005, and any amendment or replacement of any of the foregoing so long as such
amendment or replacement agreement is not less advantageous to any Credit Party thereto in any
material respect than the agreement so amended or replaced, as such agreement was in effect on
December 31, 2005, (iv) any transaction wholly between the Counterparty and WPC or (v) the Bargath
Asset Transfer.

     (i) Restricted Payments. (i) Declare or pay any dividends (other than in common stock of
such Credit Party), purchase, redeem, retire, defease or otherwise acquire for value any of its
Equity Interests now or hereafter outstanding, return any capital to its stockholders, partners or
members (or the equivalent Persons thereof) as such, make any other distribution of assets, Equity
Interests, obligations or securities to its stockholders, partners or members (or the equivalent
Persons thereof) as such, or (ii) permit any of its Subsidiaries to purchase, redeem, retire,
defease or otherwise acquire for value any Equity Interests in any Credit Party (any action
described in clause (i) or (ii) of this sentence being a “Restricted Payment”), except (x) cash
dividends paid to a parent of a Credit Party to the extent necessary to permit such parent to pay
any taxes that are due and payable by the Credit Party Entities as part of a consolidated group,
(y) any Restricted Payment made if no Present Value Deficiency shall exist and no Event of Default
shall have occurred and be continuing at the time of such Restricted Payment and no Pro Forma
Present Value Deficiency or Event of Default would result therefrom and (z) cash dividends paid to
a Credit Party Entity.

42

 

     (j) Sale and Leaseback Transactions. Enter into, or permit any of its Subsidiaries to enter
into, any Sale and Leaseback Transaction, if after giving effect thereto the sum of (i) the
aggregate amount of all Attributable Obligations of such Credit Party and its Subsidiaries plus
(ii) the aggregate amount of all obligations of such Credit Party and its Subsidiaries secured by
any Lien referred to in paragraph (k) of Schedule V would exceed $40,000,000.

     (k) Change of Business. Enter into, or permit any of its Subsidiaries to enter into, any
business except for those businesses in which the Credit Party Entities are engaged on the
Effective Date or that are reasonably related or incidental thereto.

     (l) Sale of Oil and Gas Properties. Except for (i) Hydrocarbons sold in the ordinary course
of business as and when produced, (ii) Hydrocarbon Interests transferred in the ordinary course of
business to Persons that are neither a Credit Party Entity nor TWC nor an Affiliate of either a
Credit Party Entity or TWC and (iii) Permitted Dispositions, sell, assign, transfer, dispose,
farm-out or convey, directly or indirectly, by way of merger or sale of Equity Interests in a
Subsidiary or otherwise (“Transfer”), or permit any Subsidiary to do so, any interest in
any of its Oil and Gas Properties, unless no Present Value Deficiency exists and no Event of
Default shall have occurred and be continuing at the time thereof and no Pro Forma Present Value
Deficiency or Event of Default would result therefrom.

ARTICLE VI

EVENTS OF DEFAULT; CERTAIN REMEDIES

     SECTION 6.1 Events of Default. Subject to Section 6.2, if any of the following events
(“Events of Default”) shall occur and be continuing:

     (a) Any Credit Party (i) shall fail to comply with Section 2.7 when required by Section 2.7 or
shall fail to comply with Section 6.2 when required by Section 6.2, (ii) shall fail to make any
payment or, except with respect to Gas Transactions, delivery when required by any Qualifying
Hedge, or (iii) shall fail to pay any interest, fee or other amount (other than any amount referred
to in clause (i) or (ii) of this Section 6.1(a)) presented in writing to be paid by it hereunder or
under any Credit Document to which it is a party within ten days after the same becomes due and
payable; or

     (b) Any certification, representation or warranty made by any Credit Party herein or in any other
Credit Document or by any Credit Party (or any Authorized Officer of any Credit Party) in writing
under or in connection with this Agreement or any other Credit Document or any instrument executed
in connection herewith shall prove to have been incorrect in any material respect when made or
deemed made; or

     (c) Any Credit Party shall fail to perform or observe (i) any term, covenant or agreement contained
in this Agreement (other than a term, covenant or agreement contained in Section 2.7 or Section
5.2) or any other Credit Document (other than a Qualifying Hedge or a Subordination Agreement) on
its part to be performed or observed and such failure shall continue for 30 days after the earlier
of the date notice thereof shall have been given to the Counterparty by the Administrative Agent or
any Bank or the date an Authorized Officer of such Credit Party shall have knowledge of such
failure or (ii) any term, covenant or agreement contained in Section 5.2; or

     (d) Any Credit Party or any Subsidiary of any Credit Party (other than a Non-Recourse Subsidiary)
shall fail to pay any principal of or premium or interest on any Debt which is outstanding in a
principal amount of at least $50,000,000 in the aggregate of such Credit Party or any Subsidiary of
such Credit Party (as the case may be) (other than a Non-Recourse Subsidiary), when the same
becomes due

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and payable (whether by scheduled maturity, required prepayment, acceleration, demand or
otherwise), and such failure shall continue after the applicable grace period, if any, specified in
the agreement or instrument relating to such Debt; or any such Debt shall be accelerated; or

     (e) Any Credit Party or any Material Subsidiary of any Credit Party shall generally not pay its
debts as such debts become due, or shall admit in writing its inability to pay its debts generally,
or shall make a general assignment for the benefit of creditors; or any proceeding shall be
instituted by or against any Credit Party or any Material Subsidiary of any Credit Party seeking to
adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of
an order for relief or the appointment of a receiver, trustee, or other similar official for it or
for any substantial part of its property and, in the case of any such proceeding instituted against
it (but not instituted by it), shall remain undismissed or unstayed for a period of 60 days; or any
Credit Party or any Material Subsidiary of any Credit Party shall take any action to authorize any
of the actions set forth above in this subsection (e) (for the avoidance of doubt, Non-Recourse
Subsidiaries are not subject to this clause (e)); or

     (f) One or more judgments or orders for the payment of money in excess of $50,000,000 in the
aggregate (to the extent not paid or to the extent not covered by insurance or indemnities that the
Counterparty’, in its reasonable good faith judgment, believes will be paid when due by the parties
providing such indemnities or insurance) shall be rendered against any Credit Party or any Material
Subsidiary of any Credit Party and remain unsatisfied and either (i) enforcement proceedings shall
have been commenced by any creditor upon such judgment or order or (ii) there shall be any period
of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a
pending appeal or otherwise, shall not be in effect (for the avoidance of doubt, Non-Recourse
Subsidiaries are not subject to this clause (f)); or

     (g) Any Termination Event (ERISA) with respect to a Plan shall have occurred and, 30 days after
notice thereof shall have been given to the Counterparty by the Administrative Agent, (i) such
Termination Event (ERISA) shall still exist and (ii) the sum (determined as of the date of
occurrence of such Termination Event (ERISA)) of the Insufficiency of such Plan and the
Insufficiency of any and all other Plans with respect to which a Termination Event (ERISA) shall
have occurred and then exist (or in the case of a Plan with respect to which a Termination Event
(ERISA) described in clause (ii) of the definition herein of Termination Event (ERISA) shall have
occurred and then exist, the liability related thereto) is equal to or greater than $125,000,000;
or

     (h) Any Credit Party or any Subsidiary or ERISA Affiliate of any Credit Party shall have been
notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to such
Multiemployer Plan in an amount which, when aggregated with all other amounts required to be paid
to Multiemployer Plans in connection with Withdrawal Liabilities (determined as of the date of such
notification), exceeds $125,000,000 in the aggregate; or

     (i) Any Credit Party or any Subsidiary or ERISA Affiliate of any Credit Party shall have been
notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization
or is being terminated, within the meaning of Title IV of ERISA, if as a result of such
reorganization or termination the aggregate annual contributions of the Credit Parties and their
respective ERISA Affiliates to all Multiemployer Plans which are then in reorganization or being
terminated have been or will be increased over the amounts contributed to such Multiemployer Plans
for the respective plan years which include the Effective Date by an amount exceeding $125,000,000;
or

44

 

     (j) The
guarantee given by the Guarantor pursuant to Article IX for any reason is not a legal,
valid, binding and enforceable obligation of the Guarantor or any Credit Party shall so state in
writing; or

     (k) A
Change of Control Event shall occur, or

     (l) Any TWC Default shall occur; or

     (m) Any party to a Subordination Agreement (other than the Administrative Agent) shall fail to
perform or observe any term, covenant or agreement contained in such Subordination Agreement on its
part to be performed or observed (provided that a five Business Day grace period shall
apply to breaches of Section 1.6 of any Subordination Agreement, the last sentence of Section 1.11
of any Subordination Agreement and Section 4.1 of any Subordination Agreement); or

     (n) Any Subordination Agreement for any reason is not a legal, valid, binding and enforceable
obligation of any party thereto (other than the Administrative Agent) or any such party shall so
state in writing; 

then, and in any such event, (1) each Bank shall have the right to terminate all (but not less than
all) of the Qualifying Hedges to which it is a party (which, for avoidance of doubt, includes,
without limitation, any Qualifying Hedge to which any of its Designated Affiliates is a party) and
shall have all other rights and remedies provided by the Hedge Documents to which it is a party, by
law or otherwise, (2) as of the Business Day specified by notice to the Counterparty given by the
Administrative Agent at the request of the Required Banks, all Qualifying Hedges shall be deemed
terminated in accordance with Section 6(a) of each ISDA Master Agreement, (3) each Bank will, so
long as it has actual knowledge of the continuance of such event, pay directly to the Collateral
Agent for deposit into the Collateral Account all payments under any Qualifying Hedge that would
otherwise be paid to the Counterparty, and such payments will be made without exercise of any
offset, defense or counterclaim (except that a Bank may net payments owed under any Qualifying
Hedge to which it is a party against payments owed under any other Qualifying Hedge to which it is
a party and may net payments under the same Qualifying Hedge) and (4) the Administrative Agent
while such event exists shall at the request, or may with the consent, of the Required Banks, by
notice to the Counterparty, declare all amounts payable by any Credit Party under this Agreement
and any other Credit Document to be forthwith due and payable, whereupon all such amounts shall
become and be forthwith due and payable, without requirement of any presentment, demand, protest,
notice of intent to accelerate, further notice of acceleration or other further notice of any kind
(other than the notice expressly provided for above), all of which are hereby expressly waived by
the Credit Parties; provided, however, that in the event of any Event of Default described in
Section 6.1(e), all such amounts (other than amounts payable under any Hedge Document) shall
automatically become and be due and payable, without presentment, demand, protest, notice of intent
to accelerate, notice of acceleration or any other notice of any kind, all of which are hereby
expressly waived by the Credit Parties.

     SECTION 6.2 Abatement of Certain Defaults. Notwithstanding Section 6.1, if (i) any event
(other than an event referred to in Section 6.1(a) or 6.1(e)) occurs that would constitute an Event
of Default, (ii) within one Business Day of such occurrence, the Counterparty delivers to the
Collateral Agent, for deposit into the Collateral Account, Acceptable Credit Support in an amount
sufficient to cause the aggregate amount of all Acceptable Credit Support in the Collateral Account
to be equal to the aggregate of the net MTM Exposure of each Bank for the day of such occurrence
for all Qualifying Hedges to which such Bank is a party (determined separately for each Bank and
then aggregated, but excluding any Bank as to which such net MTM Exposure is negative), and (iii)
on each subsequent Business Day so long as such occurrence continues, the Counterparty delivers to
the Collateral Agent, for deposit into the Collateral Account, Acceptable Credit Support in an
amount, if any, sufficient to cause the aggregate amount of all Acceptable Credit Support in the
Collateral Account to be equal to the

45

 

aggregate of the net MTM Exposure of each Bank for the immediately preceding Business Day for all
Qualifying Hedges to which such Bank is a party (determined separately for each Bank and then
aggregated, but excluding any Bank as to which such net MTM Exposure is negative), then (I) such
event shall not constitute an Event of Default hereunder or under any other Credit Document, except
such event shall constitute an “Event of Default” as such term is used in Sections 2.7, 5.1(f),
5.2(d), 5.2(i), 5.2(1) and 8.4 and this Section 6.2, and (II) the rights and remedies that would
otherwise exist, in respect of such event, pursuant to clauses (1),
(2) and (4) of Section 6.1 shall
not be applicable so long as the Counterparty is in compliance with this Section 6.2,
provided that this clause (II) shall not apply to the extent any such event would
constitute an Event of Default as a result of a failure to comply with any of Sections 5.1(f),
5.2(d), 5.2(i), 5.2(1) or 8.4 at a time when another event constitutes an “Event of Default”, as
such term is used in such Section pursuant to the exception set forth in clause (I) of this
sentence. The Counterparty agrees to make the deliveries contemplated by clause (ii) of the
foregoing sentence and the deliveries contemplated by clause (iii) of the foregoing sentence, in
each case on the days contemplated therein.

     SECTION 6.3 Additional Remedies. Upon the occurrence and during the continuance of any
“Event of Default” (as defined in any Qualifying Hedge) with respect to the Counterparty, the Bank
party to such Qualifying Hedge shall have all rights and remedies provided therein.

ARTICLE VII

THE AGENTS

     SECTION 7.1 Agents’ Authorization and Action. Each of the Banks hereby appoints and
authorizes (i) the Administrative Agent to take such action as agent on its behalf and to exercise
such powers under this Agreement and the other Credit Documents as are delegated to the
Administrative Agent by the terms hereof and thereof, together with such powers as are reasonably
incidental thereto, (ii) the Computation Agent to take such
action as agent on its behalf and to
exercise such powers under this Agreement and the other Credit Documents as are delegated to the
Computation Agent by the terms hereof and thereof, together with such powers as are reasonably
incidental thereto, (iii) the Collateral Agent to take such action as agent on its behalf and to
exercise such powers under this Agreement and the other Credit Documents as are delegated to the
Collateral Agent by the terms hereof and thereof, together with such powers as are reasonably
incidental thereto, and (iv) the PV Determination Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement and the other Credit Documents as are delegated to
the PV Determination Agent by the terms hereof and thereof, together with such powers as are
reasonably incidental thereto. As to any matters not expressly provided for by the Credit Documents
(including enforcement of the terms of this Agreement or collection of any amount) no Agent shall
be required to exercise any discretion or take any action, but shall be required to act or to
refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the
instructions of the Required Banks, and such instructions shall be binding upon all Banks;
provided, however, that no Agent shall be required to take any action which exposes
such Agent to personal liability, is contrary to the Credit Documents or applicable law or is an
action within the power or authority of another Agent. Each Agent agrees to give to each Bank and
each of the other Agents prompt notice of each notice given to it, in its capacity as such Agent,
by any Credit Party pursuant to the terms of this Agreement (other
than Section 5.1(b)(xi)) or any
other Credit Document. The Administrative Agent will promptly furnish to each Bank all items
furnished to the Administrative Agent pursuant to Section 5.1(b). The Computation Agent will
furnish to each Bank and the Counterparty by noon (central time) on the Business Day following each
day on which the Computation Agent receives a report from the Counterparty pursuant to Section
5.1(b)(x), a report (which report shall be as of the close of business of the same Business Day as
to which such report from the Counterparty pursuant to
Section 5.1(b)(x) relates) in substantially
the form of Exhibit H, but will not be obligated to send to any Bank or Agent any

46

 

such report received from the Counterparty. The Collateral Agent (i) will promptly notify each
Bank if, based on the information contained in the most recent Computation Agent’s report in
substantially the form of Exhibit H, the information delivered pursuant to Section 5.1(b)(xi) and
the relevant S&P and Moody’s ratings, a Bank has not provided the Bank Credit Support required by
the ISDA Master Agreement to which such Bank is a party, which notice shall include the name of
such Bank, the Applicable Credit Support Threshold for such Bank, the amount of Bank Credit Support
so required and the amount of Bank Credit Support with respect to such Bank then held in the
Collateral Account, (ii) if, based on the information contained in the most recent Computation
Agent’s report in substantially the form of Exhibit H, a Present Value Deficiency exists, will
promptly notify each Bank that compliance with the second sentence of Section 2.7 is required as a
result of such Present Value Deficiency, (iii) if a notice pursuant to clause (ii) of this sentence
has been given and thereafter, based on the information contained in the most recent Computation
Agent’s report in substantially the form of Exhibit H, no Present Value Deficiency exists, will
promptly notify each Bank that such compliance is no longer required as a result of the Present
Value Deficiency that resulted in such notice (but without limiting any further requirement of
compliance with the second sentence of Section 2.7 if a Present Value Deficiency subsequently
exists), and (iv) will notify the Computation Agent no later than 5:00 p.m. (central time) on each
Business Day of the amount of Acceptable Credit Support then in the Collateral Account.

     SECTION 7.2 Agents’ Reliance, Etc. To the extent that the information provided to
the Computation Agent, in its capacity as the Computation Agent, with respect to any Qualifying
Hedge is sensitive market information, the Computation Agent agrees to use reasonable business
efforts to keep such information confidential and separate and apart from its personnel (or
personnel of its subsidiaries and other subsidiaries of the Computation Agent’s ultimate parent)
that are engaged in energy trading activities with any Credit Party, except as otherwise provided
in any Credit Document. Without limiting other actions that may constitute reasonable business
efforts, the Computation Agent will be deemed to have satisfied the requirements of the preceding
sentence to the extent it affords such information the same treatment as it affords other similar
information in similar circumstances. No Agent nor any director, officer, agent or employee of any
Agent shall be liable for any action taken or omitted to be taken by any of them or under or in
connection with this Agreement or any other Credit Document, except for its or their own gross
negligence or willful misconduct. Without limitation of the generality of the foregoing, each
Agent: (i) may consult with legal counsel (including counsel for any Credit Party), accountants and
other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes
no warranty or representation to any Bank or Agent and shall not be responsible to any Bank or
Agent for any statements, warranties or representations (whether written or oral) made in or in
connection with this Agreement or any other Credit Document; (iii) shall not have any duty to
ascertain or to inquire as to the title to any property or as to the satisfaction, performance or
observance of any of the terms, covenants or conditions of this Agreement or any other Credit
Document on the part of any Credit Party Entity or to inspect the property (including the books and
records) of any Credit Party Entity; (iv) shall not be responsible to any Bank or Agent for the
perfection, priority, existence, sufficiency or value of any security, security
interest, guaranty or insurance or for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement, any other Credit Document or any other
instrument or document furnished pursuant hereto or thereto; (v) shall incur no liability under or
in respect of any Credit Document by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telecopier, telegram, email, telex or otherwise) believed by
it in its reasonable judgment to be genuine and signed or sent by the proper party or parties; and
(vi) may treat a Bank as the obligee of any Obligation at any time owed to such Bank, until such
Agent receives a Transfer Agreement executed by such Bank and all other required parties. Without
limiting the generality of the foregoing, insofar as the Administrative Agent is concerned, each
Bank shall be deemed to have consented to, approved and accepted and to be satisfied with each
matter required under Section 3.1 of this Agreement, unless the officer of the Administrative Agent
responsible for the transactions contemplated by the Credit

47

 

Documents shall have received written notice from such Bank prior to such Bank entering into any
Qualifying Hedge specifying its objection thereto; provided that this sentence is solely for the
benefit of
the Administrative Agent (and not any Credit Party) and shall not amend, waive or otherwise modify
Section 3.1, Section 6.1(b) or any other provision applicable to any Credit Party.

     SECTION 7.3 Rights. With respect to its Qualifying Hedges, each of Citibank, Citigroup
Energy Inc. and Calyon New York shall have the same rights and powers under the Credit Documents as
any other Bank and may exercise the same as though it was not an Agent. Citibank, Citigroup Energy
Inc., Calyon New York and the respective affiliates of each may accept deposits from, lend money
to, act as trustee under indentures of, and generally engage in any kind of business with, any
Credit Party, any Person who may do business with or own, directly or indirectly, securities of any
Credit Party and any other Person, all as if Citibank, Citigroup Energy Inc. and Calyon New York
were not Agents, in each case without any duty to account therefor to the Banks. In the event that
Citibank or any of its affiliates shall be or become an indenture trustee under the Trust Indenture
Act of 1939 (as amended, the “Trust Indenture Act”) in respect of any securities issued or
guaranteed by any Credit Party, the parties hereto acknowledge and agree that any payment or
property received in satisfaction of or in respect of any Obligation of such Credit Party hereunder
or under any other Credit Document by or on behalf of Citibank (or any of its affiliates) in its
capacity as an Agent for the benefit of any Bank under any Credit Document (other than Citibank or
an affiliate of Citibank) and which is applied in accordance with the Credit Documents shall be
deemed to be exempt from the requirements of Section 311 of the Trust Indenture Act pursuant to
Section 311(b)(3) of the Trust Indenture Act.

     SECTION 7.4 Indemnification. Each Bank agrees to indemnify each Agent (to the extent not
reimbursed by the Credit Parties), from and against such Bank’s Ratable Portion of all claims,
damages, losses, liabilities, costs, fees and expenses (including reasonable fees and disbursements
of external counsel) of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against any Agent in any way relating to or arising out of this Agreement or any other
Credit Document or any action taken or omitted by any Agent under this Agreement or any other
Credit Document, including any of the foregoing incurred in connection with any action taken under
Section 5.1(f) (expressly including any such claim, damage, loss, liability, cost, fee or expense
attributable to the ordinary, sole or contributory negligence of such Agent, but excluding any such
claim, damage, loss, liability, cost, fee or expense attributable to the gross negligence or
willful misconduct of such Agent). It is the intent of the parties hereto that each Agent shall, to
the extent provided in this Section 7.4, be indemnified for its own ordinary, sole or contributory
negligence. Without limitation of the foregoing, each Bank agrees to reimburse each Agent promptly
upon demand for such Bank’s Ratable Portion of any out-of-pocket expenses (including external
counsel fees) incurred by such Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
Agreement
or any other Credit Document to the extent that such Agent is not reimbursed for such expenses by
the Credit Parties.

     SECTION 7.5 Successor Agents. (a) The Administrative Agent may resign at any time as
Administrative Agent under this Agreement by giving written notice thereof to the Banks, the other
Agents and the Counterparty and may be removed at any time with or without cause by the Required
Banks. Upon any such resignation or removal, the Required Banks shall have the right to appoint,
with the consent of the Counterparty (which consent shall not be unreasonably withheld and shall
not be required if an Event of Default under Section 6.1(a) or 6.1(e) exists), a successor
Administrative Agent, which shall be a Bank or a Designated Affiliate of a Bank. If no successor
Administrative Agent shall have been so appointed by the Required Banks with such consent (if
required), and shall have accepted such appointment, within 30 days after the retiring
Administrative Agent’s giving of notice of resignation or the Required Banks’ removal of the
retiring Administrative Agent, then the retiring Administrative

48

 

Agent may, on behalf of the Banks, appoint a successor Administrative Agent, which shall be a Bank
that is a commercial bank organized under the laws of the United States of America or of any State
thereof and having a combined capital and surplus of at least $500,000,000 or a Designated
Affiliate of a Bank. Upon the acceptance of any appointment as Administrative Agent under this
Agreement by a successor Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties of the retiring
Administrative Agent and shall function as the Administrative Agent under this Agreement, and the
retiring Administrative Agent shall be discharged from its duties and obligations as Administrative
Agent under this Agreement. After any retiring Administrative Agent’s resignation or removal
hereunder as Administrative Agent, the provisions of this Article VII shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was Administrative Agent under this
Agreement.

     (b) The Computation Agent may resign at any time as Computation Agent under this Agreement by
giving written notice thereof to the Banks, the other Agents and the Counterparty and may be
removed at any time with or without cause by the Required Banks. Upon any such resignation or
removal, the Required Banks shall have the right to appoint, with the consent of the Counterparty
(which consent shall not be unreasonably withheld and shall not be required if an Event of Default
under Section 6.1(a) or 6.1(e) exists), a successor Computation Agent, which shall be a Bank or a
Designated Affiliate of a Bank. If no successor Computation Agent shall have been so appointed by
the Required Banks with such consent (if required), and shall have accepted such appointment,
within 30 days after the retiring Computation Agent’s giving of notice of resignation or the
Required Banks’ removal of the retiring Computation Agent, then the retiring Computation Agent may,
on behalf of the Banks, appoint a successor Computation Agent, which shall be a Bank that is a
commercial bank organized under the laws of the United States of America or of any State thereof
and having a combined capital and surplus of at least $500,000,000 or a Designated Affiliate of a
Bank. Upon the acceptance of any appointment as Computation Agent under this Agreement by a
successor Computation Agent, such successor Computation Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Computation Agent and
shall function as the Computation Agent under this Agreement, and the retiring Computation Agent
shall be discharged from its duties and obligations as Computation Agent under this Agreement.
After any retiring Computation Agent’s resignation or removal hereunder as Computation Agent, the
provisions of this Article VII shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Computation Agent under this Agreement.

     (c) The Collateral Agent may resign at any time as Collateral Agent under this Agreement by giving
written notice thereof to the Banks, the other Agents and the
Counterparty and may be removed
at any time with or without cause by the Required Banks. Upon any such resignation or removal, the
Required Banks shall have the right to appoint, with the consent of the Counterparty (which consent
shall not be unreasonably withheld and shall not be required if an Event of Default under Section
6.1(a) or 6.1(e) exists), a successor Collateral Agent, which shall be a Bank or a Designated
Affiliate of a Bank. If no successor Collateral Agent shall have been so appointed by the Required
Banks with such consent (if required), and shall have accepted such appointment, within
30 days after the retiring Collateral Agent’s giving of notice of resignation or the Required
Banks’ removal of the retiring Collateral Agent, then the retiring Collateral Agent may, on behalf
of the Banks, appoint a successor Collateral Agent, which shall be a Bank that is a commercial bank
organized under the laws of the United States of America or of any State thereof and having a
combined capital and surplus of at least $500,000,000 or a Designated Affiliate of a Bank. Upon the
acceptance of any appointment as Collateral Agent under this Agreement by a successor Collateral
Agent, (i) the retiring Collateral Agent shall deliver to such successor Collateral Agent all
collateral and letters of credit in the Collateral Account and all assignments and other transfers
necessary to transfer such collateral and letters of credit to the successor Collateral Agent,
(ii) such successor Collateral Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Collateral Agent and shall function as the
Collateral Agent under this

49

 

Agreement, and (iii) the retiring Collateral Agent shall be discharged from its duties and
obligations as Collateral Agent under this Agreement and the Security Documents. After any retiring
Collateral Agents resignation or removal hereunder as Collateral Agent, the provisions of this
Article VII shall inure to its benefit as to any actions taken or omitted to be taken by it while
it was Collateral Agent under this Agreement.

     (d) The PV Determination Agent may resign at any time as PV Determination Agent under this
Agreement by giving written notice thereof to the Banks, the other Agents and the Counterparty and
may be removed at any time with or without cause by the Required Banks. Upon any such resignation
or removal, the Required Banks shall have the right to appoint, with the consent of the
Counterparty (which consent shall not be unreasonably withheld and shall not be required if an
Event of Default under Section 6.1(a) or 6.1(e) exists), a successor PV Determination Agent, which
shall be a Bank or a Designated Affiliate of a Bank. If no successor PV Determination Agent shall
have been so appointed by the Required Banks with such consent (if required), and shall have
accepted such appointment, within 30 days after the retiring PV Determination Agent’s giving of
notice of resignation or the Required Banks’ removal of the retiring PV Determination Agent, then
the retiring PV Determination Agent may, on behalf of the Banks, appoint a successor PV
Determination Agent, which shall be a Bank that is a commercial bank organized under the laws of
the United States of America or of any State thereof and having a combined capital and surplus of
at least $500,000,000 or a Designated Affiliate of a Bank. Upon the acceptance of any appointment
as PV Determination Agent under this Agreement by a successor PV Determination Agent, such
successor PV Determination Agent shall thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the retiring PV Determination Agent and shall function as the PV
Determination Agent under this Agreement, and the retiring PV Determination Agent shall be
discharged from its duties and obligations as PV Determination Agent under this Agreement. After
any retiring PV Determination Agent’s resignation or removal hereunder as PV Determination Agent,
the provisions of this Article VII shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was PV Determination Agent under this Agreement.

     SECTION 7.6 Decisions. Each of the Agents and the Banks acknowledges that it has,
independently and without reliance upon any Agent, the Joint Lead Arrangers or any Bank and based
on the financial statements referred to in Section 4.1(e) and such other documents and information
as it has deemed appropriate, made its own credit analysis and its own decision to enter into this
Agreement. Each of the Agents and the Banks (in each case, both on its own behalf and on behalf of
its affiliates, directors, officers, employees and agents that are Indemnified Parties) also
acknowledges that it will, independently and without reliance upon any Agent, the Joint Lead
Arrangers or any other Bank and based on such documents and information as it shall deem
appropriate at the time, continue to make its own decisions in taking or not taking action under
this Agreement and the other Credit Documents.

     SECTION 7.7 Certain Rights of the Agents. If any Agent shall request instructions from the
Required Banks with respect to any act or action (including failure to act) in connection with this
Agreement or any other Credit Document, such Agent shall be entitled to refrain from such act or
taking such action unless and until such Agent shall have received instructions from the Required
Banks; and it shall not incur liability to any
Person by reason of so refraining. Without limiting the foregoing, no Bank nor any Indemnified
Party shall have any right of action whatsoever against any Agent as a result of its acting or
refraining from acting hereunder or under any other Credit Document in accordance with the
instructions of the Required Banks. Furthermore, except for action expressly required of an Agent
hereunder, such Agent shall in all cases be fully justified in failing or refusing to act hereunder
unless it shall be specifically indemnified to its satisfaction by the Banks (ratably, in
accordance with their respective Ratable Portions) against any and all liability and expense which
may be incurred by it by reason of taking or continuing to take any such action.

50

 

     SECTION 7.8 Other Persons. The Joint Lead Arrangers have no duties or obligations under any
Credit Document. None of the Joint Lead Arrangers shall have, by reason of this Agreement or the
other
Credit Documents, a fiduciary relationship in respect of any Bank or any Agent and nothing in this
Agreement or other Credit Documents, express or implied, is intended or shall be so construed to
impose
on any Joint Lead Arranger any obligation in respect of this Agreement or other Credit Documents.

     SECTION 7.9 Additional Rights of Collateral Agent. In the event of any ambiguity or
uncertainty hereunder regarding the Collateral Agent or its duties or in any notice, instruction or
other communication received by the Collateral Agent hereunder, the Collateral Agent may, in its
sole discretion, refrain from taking any action other than retaining possession of the Collateral,
unless the Collateral Agent receives written instructions, signed by the Counterparty and the
Required Banks, which eliminates such ambiguity or uncertainty.

     In the event of any dispute between or conflicting claims by or among the Banks and any other
Person with respect to any Collateral, the Collateral. Agent shall be entitled, in its sole
discretion, to refuse to comply with any and all claims, demands or instructions with respect to
such Collateral so long as such dispute or conflict shall continue, and the Collateral Agent shall
not be or become liable in any way to the Banks for failure or refusal to comply with such
conflicting claims, demands or instructions. The Collateral Agent shall be entitled to refuse to
act until, in its sole discretion, either (i) such conflicting or adverse claims or demands shall
have been determined by a final order, judgment or decree of a court of competent jurisdiction,
which order, judgment or decree is not subject to appeal, or settled by agreement between the
conflicting parties as evidenced in a writing satisfactory to the Collateral Agent or (ii) the
Collateral Agent shall have received security or an indemnity satisfactory to it sufficient to hold
it harmless from and against any and all losses which it may incur by reason of so acting. The
Collateral Agent may, in addition, elect, in its sole discretion, to commence an interpleader
action or seek other judicial relief or orders as it may. deem, in its sole discretion, necessary.
The costs and expenses (including reasonable attorneys’ fees and expenses) incurred in connection
with such proceeding shall be paid by the Counterparty.

ARTICLE VIII

MISCELLANEOUS

     SECTION 8.1 Amendments, Etc. No amendment or waiver of any provision of this Agreement or
any Credit Document (other than any Confirmation and any amendment, waiver or other modification of
any Confirmation), nor consent to any departure by any Credit Party therefrom, shall in any event
be effective unless the same shall be in writing and signed by the Required Banks and the Credit
Parties, and then such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given; provided, however, that no amendment, waiver
or consent shall, unless in writing and signed by the Required Banks and by all the Banks directly
affected thereby, do any of the following:
(a) subject any Bank to any liability, commitment or obligation, (b) reduce any fees or other
amounts payable hereunder or under any Credit Document, (c) postpone any date fixed for any payment
of any fees or other amounts payable hereunder or under any Credit Document, (d) change the
definition of Required Banks, (e) release or limit the liability of any Credit Party, (f) amend or
waive any provision of, or consent to any departure by any Credit Party from, Section 2.9 or this
Section 8.1 or (g) modify any indemnity; and provided further that no amendment,
waiver or consent shall affect the rights or duties of any Agent under any Credit Document, unless
in writing and signed by such Agent in addition to the Banks required above to take such action. No
amendment or waiver of, or consent relating to, this Agreement or any Credit Document (other than
any Confirmation and any amendment, waiver or other modification of any Confirmation) shall be
effective until delivered to all Banks.

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     SECTION 8.2 Notices, Etc. (a) Except as otherwise provided in Section 8.2(b), all notices
and other communications provided for hereunder or under any Security Document shall be in writing
(including telecopy communication) and mailed, telecopied or delivered, if to any Bank, as
specified opposite its name on Schedule I hereto or specified in any New Bank Agreement or a
Transfer Agreement for any assignee Bank delivered pursuant to Section 8.5(a); if to a Credit
Party, as specified opposite its name on Schedule II hereto; if to Citibank, as an Agent, to its
address at 250 West Street, 10th Floor, New York, New York 10013
(telecopier number: (212)
723-2956), Attention: Director Derivatives Operations, with a copy to Citicorp North America, Inc.,
333 Clay Street, Suite 3700, Houston, Texas 77002 (telecopier number: (713) 481-0247), Attention:
The Williams Companies, Inc. Account Officer; if to Citigroup Energy Inc., as an Agent, to its
address at 2800 Post Oak Blvd., Suite 500, Houston, Texas 77056
(telecopier number: (713) 752-5244)
Attention: Legal Department, with a copy to Legal Department, 77 Water Street, 9th Floor, New York,
New York 10004 (telecopier number: (212) 657- 1452), Attention: Department Head; if to Calyon New
York, as Collateral Agent, to its address at 1301 Avenue of the Americas, New York, New York 10019
(telecopier number: (212) 261-3315), Attention:
Collateral Department; if to Calyon New York, as PV Determination Agent, to its address at 1301
Travis Suite 2100 Houston, TX 77002 (Telecopier: (713) 890-8668), Attention: Reservoir Engineer; or,
as to any Credit Party, any Bank or any Agent, at such other address as shall be designated by such
party in a written notice to the other parties; provided that materials required to be
delivered pursuant to Section 5.1(b)(ii), (iii) and (iv) shall be delivered to the Administrative
Agent as specified in Section 8.2(b) or as otherwise specified to any Credit Party by the
Administrative Agent; provided, further, that any communication that (a) relates to the
payment of any amount due under this Agreement prior to the scheduled date therefor, (b) provides
notice of any Default or Event of Default or (c) is required to be delivered to satisfy any
condition precedent to the effectiveness of any provision of this Agreement or pertains to a
Qualifying Hedge shall be in writing (including telecopy communication) and mailed, telecopied or
delivered pursuant to this Section 8.2(a). All such notices and communications shall, when mailed,
telecopied or e-mailed, be effective when received in the mail, sent
by telecopier to any party to
the telecopier number as set forth herein or on Schedule I or Schedule II or specified in a New
Bank Agreement or a Transfer Agreement for any assignee Bank delivered pursuant to Section 8.5(a)
(or other telecopy number specified by such party in a written notice to the other parties hereto)
or confirmed by e-mail, respectively, except that notices and communications to any Agent shall not
be effective until received by such Agent. Any notice or communication to a Bank hereunder or under
any Security Document (but not notices and communications under a Hedge Document) shall be deemed
to be a notice or communication to any Designated Affiliate of such
Bank. Delivery by telecopier of
an executed counterpart of this Agreement, any other Credit Document or any amendment or waiver of
any provision of this Agreement or any other Credit Document shall be effective as delivery of a
manually executed counterpart thereof.

     (b) The Credit Parties will have the option to provide to the Administrative Agent all information,
documents and other materials that they are obligated to furnish to the Administrative Agent
pursuant to this Agreement, including all notices, requests,
financial statements, financial and other reports, certificates and other information materials,
but excluding any such communication that (i) relates to the payment of any principal or other
amount due under this Agreement prior to the scheduled date therefor, (ii) provides notice of any
Default or Event of Default or (iii) is required to be delivered to satisfy any condition precedent
to the effectiveness of any provision of this Agreement or pertains to a Qualifying Hedge (all such
non-excluded communications being referred to herein collectively as “Communications”), by
transmitting the Communications in an electronic/soft medium to oploanswebadmin@citigroup.com.

The Credit Parties further agree that the Administrative Agent may make the Communications
available to the Banks and the Agents by posting the Communications
on Intralinks or a
substantially similar electronic transmission system (the “Platform”). The Credit Parties
acknowledge that the distribution of

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material through an electronic medium is not necessarily secure and that there are confidentiality
and other risks associated with such distribution.

THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENT PARTIES
(AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF
THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY
DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO
WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING,
WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT
PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO
EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF
THE RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR
REPRESENTATIVES OF THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES
(COLLECTIVELY, “AGENT PARTIES”) HAVE ANY LIABILITY TO ANY
CREDIT PARTY,
ANY BANK OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND,
INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE)
ARISING OUT OF THE TRANSMISSION BY ANY CREDIT PARTY, ANY OF THE AGENT
PARTIES OR ANY OTHER PERSON OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A
FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION
TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT.

The Administrative Agent agrees that the receipt of the Communications by such Agent at its e-mail
address set forth above shall constitute effective delivery of the Communications to such Agent for
purposes of the Credit Documents. Each of the Banks
agrees that notice to it (as provided in the next sentence) specifying that the Communications have
been posted to the Platform shall constitute effective delivery of the Communications to such Bank,
for purposes of the Credit Documents. Each of the Banks agrees (i) to notify the Administrative
Agent in writing (including by electronic communication) from time to time of such Bank’s e-mail
address to which the foregoing notice may be sent by electronic transmission and (ii) that the
foregoing notice may be sent to such e-mail address.

Nothing herein shall prejudice the right of any Agent or any Bank to give any notice or other
communication pursuant to any Credit Document in any other manner specified in such Credit
Document.

     SECTION 8.3 No Waiver; Remedies. No failure on the part of any Bank or any Agent to
exercise, and no delay in exercising, any right under this Agreement or any other Credit Document
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any other right. The remedies
provided in this Agreement are cumulative and not exclusive of any remedies provided by law or in
any other Credit Document.

     SECTION 8.4 Costs and Expenses.

     (a) (i) The Counterparty agrees to pay, within 30 days of receipt by the Counterparty of
request therefor, all reasonable out-of-pocket costs and expenses of the Joint Lead Arrangers and
the Agents in connection with the syndication, preparation, execution, delivery, administration,
modification and amendment of this Agreement or any other Credit Document and the other documents
to be delivered under this Agreement, including the reasonable fees and out-of-pocket expenses of
Bracewell & Giuliani,

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LLP, counsel for the Agents, with respect thereto and with respect to advising the Administrative
Agent as to its rights and responsibilities under this Agreement and any other Credit Document, and
including reasonable fees of counsel relating to review of any New Bank Agreement or any attachment
thereto, and (ii) the Counterparty agrees to pay on demand all costs and expenses, if any
(including reasonable counsel fees and out-of-pocket expenses), of the Agents and each Bank in
connection with the enforcement (after the occurrence and during the continuance of an Event of
Default and whether through negotiations (including formal workouts or restructurings), legal
proceedings or otherwise) against any Credit Party of any Credit Document.

     (b) The Counterparty agrees, to the fullest extent permitted by law, to indemnify and hold harmless
each Agent, the Joint Lead Arrangers and each Bank and each of their respective affiliates,
directors, officers, employees and agents (the “Indemnified Parties”) from and against any
and all claims, damages, losses, liabilities, costs, fees and expenses (including reasonable fees
and disbursements of counsel) of any kind or nature whatsoever for which any of them may become
liable or which may be incurred by or asserted against any of the Indemnified Parties (other than
claims and related damages, losses, liabilities, costs, fees and expenses made by one Bank (or its
successors or assignees) against another Bank) arising out of, related to or in connection with (i)
any Credit Document or any other document or instrument delivered in connection herewith, (ii) any
violation by any Credit Party or any Subsidiary of any Credit Party of any Environmental Law or any
other law, rule, regulation or order, (iii) any Qualifying Hedge or the use or proposed use of any
Qualifying Hedge, (iv) any transaction in which any Qualifying Hedge is used or (v) any
investigation, litigation or proceeding, whether or not any of the Indemnified Parties is a party
thereto, related to or in connection with any of the foregoing or any Credit Document (expressly
including any such claim, damage, loss, liability, cost, fee or expense attributable to the
ordinary, sole or contributory negligence of such Indemnified Party, but excluding any such claim,
damage, loss, liability, cost, fee or expense sought to be recovered by any Indemnified Party to
the extent such claim, damage, loss, liability, cost, fee or expense is found in a final,
non-appealable judgment by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Indemnified Party or the gross negligence or willful
misconduct of the affiliates, advisors, directors, officers, employees or agents of such
Indemnified Party). It is the intent of the parties hereto that each Indemnified Party shall, to
the extent provided in this Section 8.4(b), be indemnified for its own ordinary, sole or
contributory negligence.

     (c) Without prejudice to the survival of any other agreement of the Counterparty hereunder, the
agreements and obligations of the Counterparty contained in Section 2.3 and this Section 8.4 shall
survive the payment in full of all amounts payable hereunder and under the other Credit Documents
and the occurrence of the Termination Date.

     SECTION 8.5 Binding Effect: Transfers.

     (a) This Agreement shall become effective when (i) it shall have been executed by the Credit
Parties and the Agents and (ii) each Bank listed on the signature pages hereof has delivered an
executed counterpart hereof to the Administrative Agent, has sent to the Administrative Agent a
facsimile copy of its signature hereon or of its signature on a signature page hereof or has
notified the Administrative Agent that such Bank has executed this Agreement and thereafter shall
be binding upon and inure to the benefit of
the Credit Parties, the Banks, the Agents and their respective successors and assigns;
provided that the Credit Parties shall not have the right to assign any of their rights
hereunder or any interest herein without the prior written consent of the Banks. Each Bank shall
transfer all of its rights and obligations under this Agreement to the same Person to which it has
transferred all of its Qualifying Hedges pursuant to Section 7
of the ISDA Master Agreement to
which it is a party or pursuant to the written consent of the Counterparty, with the transfer of
such rights and obligations to occur simultaneously with such transfer pursuant to such Section 7
or pursuant to such consent. Each such transfer of such rights and obligations

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shall be evidenced by a Transfer Agreement executed by the transferor Bank, the transferee, the
Administrative Agent and the Computation Agent. Upon such execution, from and after the effective
date specified in each Transfer Agreement (which shall not be on or prior to the date on which all
required parties have executed), (x) the assignee thereunder shall be a party hereto as a “Bank”
and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such
Transfer Agreement, have the rights and obligations of a Bank hereunder (including obligations to
the Agents pursuant to Section 7.4) and (y) the Bank assignor thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such Transfer Agreement,
relinquish its rights and be released from its obligations under this Agreement, except for rights
and obligations which continue after repayment of the Obligations or termination of this Agreement
pursuant to the express terms of this Agreement and such Bank shall cease to be a party hereto,
except as to such rights and obligations. No Bank will transfer any Qualifying Hedge pursuant to
this Section 8.5(a) to any Person other than to another Bank, a Designated Affiliate of a Bank or
to a Person that becomes a Bank party hereto contemporaneously with such transfer.

     (b) By executing and delivering a Transfer Agreement, the Bank assignor thereunder and the assignee
thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other
than as provided in such Transfer Agreement, such assignor makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or representations (whether
written or oral) made in or in connection with this Agreement, any other Credit Document or any
other instrument or document furnished pursuant hereto or in connection herewith, the perfection,
priority, existence, sufficiency or value of any security, guaranty or insurance or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of any Credit Document or any
other instrument or document furnished pursuant hereto or in connection herewith, (ii) such
assignor makes no representation or warranty and assumes no responsibility with respect to the
financial condition of any Credit Party or any other Person or the performance or observance by any
Credit Party or any other Person of any of its respective obligations under the Credit Documents or
any other instrument or document furnished pursuant hereto or in connection herewith; (iii) such
assignee confirms that it has received a copy of this Agreement, together with copies of such
financial statements and such other documents and information as it has deemed appropriate to make
its own credit analysis and its own decision to enter into such
Transfer Agreement; (iv) such assignee will, independently and without reliance upon any Agent,
such assignor or any other Bank and based on such financial statements and such other documents and
information as it shall deem appropriate at the time, continue to make its own credit analysis and
its own decisions in taking or not taking action under this Agreement, any of the other Credit
Documents or any other instrument or document, (v) such assignee appoints and authorizes the
Administrative Agent to act as Administrative Agent on its behalf and to exercise such powers and
discretion under this Agreement, any other Credit Document or any other document executed in
connection herewith or therewith as are delegated to the Administrative Agent by the terms hereof
or thereof, together with such powers and discretion as are reasonably incidental thereto; (vi)
such assignee appoints and authorizes the Computation Agent to act as Computation Agent on its
behalf and to exercise such powers and discretion under this Agreement, any other Credit Document
or any other document executed in connection herewith or therewith as are delegated to the
Computation Agent by the terms hereof or thereof, together with such powers and discretion as are
reasonably incidental thereto; (vii) such assignee appoints and authorizes the Collateral Agent to
act as Collateral Agent on its behalf and to exercise such powers and discretion under this
Agreement, any other Credit Document or any other document executed in connection herewith or
therewith as are delegated to the Collateral Agent by the terms hereof or thereof, together with
such powers and discretion as are reasonably incidental thereto; (viii) such assignee appoints and
authorizes the PV Determination Agent to act as PV Determination Agent on its behalf and to
exercise such powers and discretion under this Agreement, any other Credit Document or any other
document executed in connection herewith or therewith as are delegated to the PV Determination
Agent by the terms hereof or thereof, together with such powers and discretion as are reasonably
incidental

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thereto;
and (ix) such assignee agrees that it will perform in accordance with their terms all of
the obligations which by the terms of this Agreement are required to be performed by it as a Bank.

     (c) The Administrative Agent shall maintain a copy of each Transfer Agreement delivered to it and a
register for the recordation of the names and addresses of each Bank and the outstanding Qualifying
Hedges (the “Register”). The entries in the Register made pursuant to this Section 8.5(c)
shall be conclusive and binding for all purposes, absent manifest error, and the Credit Parties,
the Agents, and the Banks may treat as a Bank each Person whose name is recorded in the Register as
a Bank hereunder for all purposes of this Agreement. The Register shall be available for inspection
by any Credit Party, any Agent or any Bank at any reasonable time and from time to time upon
reasonable prior notice.

     (d) Upon its receipt of a Transfer Agreement or a New Bank Agreement, the Administrative Agent
shall record the information contained therein in the Register and give prompt notice thereof to
the Banks and other Agents.

     (e) Each Bank may sell participations to one or more banks or other entities (other than the Credit
Parties or any of their Affiliates) in or to all or a portion of its rights and obligations under
this Agreement (including all or a portion of the Obligations held by it); provided, that
(i) such Bank’s obligations under this Agreement shall remain unchanged, (ii) such Bank shall
remain solely responsible to the other parties hereto for the performance of such obligations,
(iii) such Bank shall remain the holder of any such Obligations for all purposes of this Agreement,
(iv) the Credit Parties, the Agents, and the other Banks shall continue to deal solely and directly
with such Bank in connection with such Bank’s rights and obligations under this Agreement, (v) all
amounts payable under this Agreement shall be calculated as if such
Bank had not sold such
participation, and (vi) the terms of any such participation shall not restrict such Bank’s ability
to consent to any departure by any Credit Party herefrom without the approval of the participant,
except that the approval of the participant may be required to the extent that such amendment,
waiver or consent would reduce any amounts payable hereunder, in each case to the extent subject to
such participation, or postpone any date fixed for any payment of any amount payable hereunder, in
each case to the extent subject to such participation.

     SECTION 8.6 Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York. Additionally, as
contemplated by Sections 8-110(e)(1)
and 9-304(b)(1) of the New York Uniform Commercial Code, it is agreed that New York is the
Collateral Agent’s jurisdiction for purposes of the New York Uniform Commercial Code.

     SECTION 8.7 Interest. It is the intention of the parties hereto that each Agent and each
Bank shall conform strictly to usury laws applicable to it, if any. Accordingly, if the
transactions with any Agent or any Bank contemplated hereby would be usurious under applicable law,
then, in that event, notwithstanding anything to the contrary in any Credit Document or any other
agreement entered into in connection with or as security for any Credit Document, it is agreed as
follows: (i) the aggregate of all consideration which constitutes interest under applicable law
that is contracted for, taken, reserved, charged or received by such Agent, or such Bank, as the
case may be, under any Credit Document or under any other agreement entered into in connection with
or as security for any Credit
Document shall under no circumstances exceed the maximum amount allowed by such applicable law and
any excess shall be canceled automatically and, if theretofore paid, shall at the option of such
Agent, or such Bank, as the case may be, be credited by such Agent or such Bank, as the case may
be, on the principal amount of the obligations owed to such Agent or such Bank, as the case may be,
by the applicable Credit Party or refunded by such Agent or such Bank, as the case may be, to the
applicable Credit Party, and (ii) in the event that the maturity of any obligation payable to such
Agent or such Bank, as the case may be, is accelerated or in the event of any required or permitted
prepayment, then such consideration that constitutes interest under law applicable to such Agent or
such Bank, as the case may be, may never

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include more than the maximum amount allowed by such applicable law and excess interest, if
any, to such Agent or such Bank, as the case may be, provided for in this Agreement or otherwise
shall be canceled automatically as of the date of such acceleration or prepayment and, if
theretofore paid, shall, at the option of such Agent or such Bank, as the case may be, be credited
by such Agent or such Bank, as the case may be, on the principal amount of the obligations owed to
such Agent or such Bank, as the case may be, by the applicable Credit Party or refunded by such
Agent or such Bank, as the case may be, to the applicable Credit Party.

     SECTION 8.8 Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement. Delivery of a counterpart of a signature page hereof by telecopier shall be as
effective as delivery of an original executed counterpart hereof.

     SECTION 8.9 Survival of Agreements, Representations and Warranties, Etc. All warranties,
representations and covenants made by any Credit Party or any Authorized Officer of any Credit
Party herein or in any certificate or other document delivered in connection with this Agreement
shall be considered to have been relied upon by the Banks and the Agents and shall survive the
execution and delivery of any Credit Document, regardless of any investigation.

     SECTION 8.10 Confidentiality. Each Bank agrees that it will not disclose without the prior
consent of the Counterparty (other than to employees, auditors, accountants, counsel or other
professional advisors of any Agent or any Bank) any information with respect to the Credit Parties,
which is furnished pursuant to this Agreement; provided that any Bank may disclose any such
information (1) as has become generally available to the public, (2) as may be required or
appropriate in any report, statement or testimony submitted to or required by any regulatory body
having or claiming to have jurisdiction over such Bank or submitted to or required by the Federal
Reserve Board or the Federal Deposit Insurance Corporation or similar organizations (whether in the
United States or elsewhere) or their successors, (3) as may be required or appropriate in response
to any summons or subpoena in connection with any litigation, (4) in order to comply with any law,
order, regulation or ruling applicable to such Bank, (5) to the prospective transferee or grantee
in connection with any contemplated transfer of any interest herein by such Bank; provided
that such prospective transferee executes an agreement with or for the benefit of the Counterparty
containing provisions substantially identical to those contained in this Section 8.10, (6) in
connection with the exercise of any remedy by such Bank following an Event of Default, (7) in
connection with any litigation involving such Bank pertaining to this Agreement or any of the other
Credit Documents or any other document delivered in connection herewith, (8) to any Bank, any
Designated Affiliate of a Bank or any Agent, (9) to any affiliate of any Bank; provided
that such affiliate has agreed with or for the benefit of the Credit Parties to be bound by
provisions substantially identical to those contained in this Section 8.10 or (10) to TWC or any of
its Subsidiaries.

     SECTION 8.11 Waiver of Jury Trial. The Credit Parties, the Agents and the Banks hereby
irrevocably waive any and all right to trial by jury in any legal proceeding arising out of or
relating to this Agreement, any other Credit Document or any of the transactions contemplated
hereby.

     SECTION 8.12 Severability. In the event any one or more of the provisions contained in this
Agreement, any New Bank Agreement or any document that amends, waives or otherwise modifies this
Agreement or any New Bank Agreement should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein and
therein shall not in any way be affected or impaired thereby. The parties shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

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     SECTION 8.13 Forum Selection and Consent to Jurisdiction; Damages. Any litigation based
hereon, or arising out of, under, or in connection with, any Credit Document, or any course of
conduct, course of dealing, statements (whether oral or written) or actions of any Agent, any Bank
or any Credit Party in connection herewith or therewith may be brought and maintained in the courts
of the State of New York sitting in the County of New York or in the United States District Court
for the Southern District of New York; provided, however, that any suit seeking
enforcement against any security may be brought, at the Collateral Agent’s option, in the courts of
any jurisdiction where such security may be found. The Credit Parties irrevocably consent to the
service of process by registered mail, postage prepaid, or by personal service within or without
the State of New York at the address for notices specified in accordance with Section 8.2. The
Credit Parties hereby expressly and irrevocably waive, to the fullest extent permitted by law, any
objection which they may have or hereafter may have to the laying of venue of any such litigation
brought in any such court referred to above and any claim that any such litigation has been brought
in an inconvenient forum. To the extent that any Credit Party has or hereafter may acquire any
immunity from jurisdiction of any court or from any legal process (whether through service or
notice, attachment prior to judgment, attachment in aid of execution or otherwise) with respect to
itself or its property, such Credit Party hereby irrevocably waives to the fullest extent permitted
by law such immunity in respect of its obligations under the Credit Documents. Each of the Credit
Parties, the Agents and the Banks hereby irrevocably and unconditionally waives, to the fullest
extent it may effectively do so under applicable law, any right it may have to claim or recover in
any action or proceeding referred to in this Section 8.13 any exemplary or punitive damages.

     SECTION 8.14 Right of Set-off. Upon (i) the occurrence and during the continuance of any
Event of Default and (ii) the making of the request or the granting of the consent specified by
Section 6.1 to authorize the Administrative Agent to take any action pursuant to Section 6.1, each
Bank is hereby authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by such Bank to or for the credit
or the account of any Credit Party against any and all of the Obligations of such Credit Party now
or hereafter existing, irrespective of whether or not such Bank shall have made any demand under
this Agreement or any other Credit Document and although such Obligations may be unmatured. Each
Bank agrees promptly to notify such Credit Party and the Administrative Agent after such set-off
and application made by such Bank, provided that the failure to give such notice shall not affect
the validity of such set-off and application. The rights of each Bank under this Section 8.14 are
in addition to other rights and remedies (including other rights of set-off) which such Bank may
have.

     SECTION 8.15 Separateness. The Credit Parties acknowledge that the Banks are entering into
the transactions contemplated by this Agreement in reliance upon each Credit Party’s identity as a
legal entity that is separate from each other Credit Party, each affiliate thereof and each other
Person. Each Credit Party agrees to maintain itself as a separate legal entity.

ARTICLE IX

GUARANTY

     SECTION 9.1 Guaranty. The Guarantor hereby unconditionally and irrevocably guarantees the
punctual payment and performance when due, whether at stated maturity, by acceleration or
otherwise, of all Obligations. Without limiting the generality of the foregoing, the Guarantor’s
liability shall extend to all amounts which constitute part of the Obligations even if such
Obligations are declared unenforceable or not allowable in a bankruptcy, reorganization, or similar
proceeding involving the Counterparty or any guarantor of any portion of the Obligations
(collectively such guarantors together with the Guarantor and

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the Counterparty are referred to herein as the “Obligors”). This Article IX constitutes a
guarantee of payment, and the Guarantor is primarily liable for the payment of the Obligations. In
the event that the Administrative Agent wishes to enforce the guarantee contained in this Section
9.1 against the Guarantor, it shall make written demand for payment from the Guarantor,
provided that no such demand shall be required if the Guarantor is in bankruptcy,
liquidation, or other insolvency proceedings of if doing so would otherwise violate any stay, order
or law, and provided further that failure by the Administrative Agent to make such demand
shall not affect the Guarantor’s obligations under this Agreement. The Guarantor shall make each
payment to be made by it hereunder promptly following demand therefor.

     SECTION 9.2 Limit of Liability. The liabilities and obligations of the Guarantor hereunder
shall be limited to an aggregate amount equal to the largest amount that would not render the
Guarantor’s obligations hereunder subject to avoidance under Section 548 of the United States
Bankruptcy Code or any comparable provisions of any applicable state law.

     SECTION 9.3 Guaranty Absolute. The Guarantor guarantees that the Obligations will be paid
and performed strictly in accordance with the Credit Documents, regardless of any law, regulation,
or order now or hereafter in effect in any jurisdiction affecting any of the Obligations or the
rights of any Person with respect thereto. The obligations of the Guarantor under this Agreement
are independent of the Obligations in each and every particular, and a separate action or actions
may be brought and prosecuted against any other Obligor, or any other Person, regardless of whether
any other Obligor or any other Person is joined in any such action or actions. The liability of the
Guarantor under this Agreement shall be absolute and unconditional irrespective of:

     (a) The lack of validity or unenforceability of the Obligations or any Credit Document (other
than this Agreement against the Guarantor) for any reason whatsoever, including that the act of
creating the Obligations is ultra vires, that the officers or representatives executing the
documents creating the Obligations exceeded their authority, that the Obligations violate usury or
other laws, or that any Obligor has defenses to the payment of the Obligations, including breach of
warranty, statute of frauds, bankruptcy, statute of limitations, lender liability, or accord and
satisfaction;

     (b) Any change in the time, manner, or place of payment or delivery of, or in any term of, any of
the Obligations, any increase, reduction, extension, or rearrangement of the Obligations, any
amendment, supplement, or other modification of the Credit Documents, or any waiver or consent
granted under the Credit Documents, including waivers of the payment and performance of the
Obligations;

     (c) Any release, exchange, subordination, waste, or other impairment (including negligent, willful,
unreasonable, or unjustifiable impairment) of any collateral securing payment of the Obligations;
the failure of any Agent, any Bank or any other Person to exercise diligence or reasonable care in
the preservation, protection, enforcement, sale, or other handling of any collateral; the fact that
any Lien or assignment related to any collateral for the Obligations shall not be properly
perfected, or shall prove to be unenforceable or subordinate to any other Lien or assignment;

     (d) Any full or partial release of any Obligor (other than the full or partial release of the
Guarantor);

     (e) The failure to apply or the manner of applying payments, collateral or the proceeds of
collateral against the Obligations;

     (f) Any change in the existence, organization or structure of any Obligor; any change in the
shareholders, directors, or officers of any Obligor, or the insolvency, bankruptcy, liquidation, or

59

 

dissolution of any Obligor or any defense that may arise in connection with or as a result of any
such insolvency, bankruptcy, liquidation or dissolution;

     (g) The failure to give notice of any extension of credit made by any Bank or other Person to any
Obligor, notice of acceptance of any guaranty contemplated by this Agreement, notice of any
amendment, supplement, or other modification of any Credit Document, notice of the execution of any
document or agreement creating new Obligations, notice of any default or event of default, however
denominated, under the Credit Documents, notice of intent to demand, notice of demand, notice of
presentment for payment, notice of nonpayment, notice of intent to protest, notice of protest,
notice of grace, notice of dishonor, notice of intent to accelerate, notice of acceleration, notice
of bringing of suit, notice of any Person’s transfer of Obligations, notice of the financial
condition of or other circumstances regarding any Obligor, notice of any Present Value Deficiency
or any other notice of any kind;

     (h) Any payment or grant of collateral by any Obligor to any Bank, Agent or other Person being held
to constitute a preference under bankruptcy laws, or for any reason any Bank, Agent or other Person
is required to refund such payment or release such collateral;

     (i) Any other action taken or omitted which affects the Obligations, whether or not such action or
omission prejudices the Guarantor or increases the likelihood that the Guarantor will be required
to pay the Obligations pursuant to the terms hereof;

     (j) The fact that all or any of the Obligations cease to exist by operation of law, including by
way of discharge, limitation or tolling thereof under applicable bankruptcy laws;

     (k) Any claim or right of set-off that the Guarantor may have; and

     (l) Any other circumstances which might otherwise constitute a defense available to, or a discharge
of any Obligor or other surety (other than the termination of this Article IX in accordance with
Section 9.5).

     SECTION 9.4 Certain Rights and Waivers.

     (a) Notice and Other Remedies. The Guarantor hereby waives promptness, diligence, notice of
acceptance, notice of acceleration, notice of intent to accelerate, and any other notice with
respect to any of the Obligations and this Agreement and any requirement that any Bank, Agent or
other Person protect, secure, perfect or insure any security interest or other Lien or any property
subject thereto or exhaust any right to take any action against any Obligor or any other Person or
any collateral.

     (b) Waiver of Subrogation and Contribution: Indemnity.

          (i) Until such time as the Obligations are irrevocably paid in full and each guaranty granted in
this Article IX is terminated in accordance with Section 9.5, the Guarantor hereby irrevocably
waives any claim or other rights which it may acquire against any Obligor that arise from the
Guarantor’s obligations under this Agreement or any other Credit Document or the payment thereof,
including any right of subrogation (including any statutory rights of subrogation under Section 509
of the Bankruptcy Code, 11 U.S.C. § 509), reimbursement, exoneration, contribution or
indemnification, or any right to participate in any claim or remedy of any Bank, Agent or other
Person against any Obligor, or any collateral which any Bank, Agent or other Person now has or
hereafter acquires. if any amount shall be paid to the Guarantor in violation of the preceding
sentence and the Obligations shall not have been paid in full or any guaranty granted in this
Article IX shall not have been terminated in accordance with Section 9.5, such amount shall be held
in trust for the benefit of the obligees of the Obligations and shall

60

 

promptly be paid to the Administrative Agent to be applied to the Obligations, whether matured or
unmatured, in accordance with Section 2.2(a) and Section 2.9. The Guarantor acknowledges that it
will receive direct and indirect benefits from the arrangements contemplated by the Credit
Documents and that the waiver set forth in this Section 9.4(b) is knowingly made in contemplation
of such benefits.

          (ii) The Guarantor agrees that, to the extent that any Credit Party makes payments to the
Administrative Agent or any other obligee of the Obligations, or the Administrative Agent or any
such obligee receives any proceeds of collateral, and such payments or proceeds or any part thereof
are subsequently invalidated, declared to be fraudulent or preferential, set aside, or otherwise
required to be repaid, then to the extent of such repayment the obligations of the Guarantor
hereunder shall be reinstated and continued in full force and effect as of the date such initial
payment or collection of proceeds occurred. The Guarantor shall indemnify each Agent, each Bank,
each Joint Lead Arranger and each affiliate thereof and their respective directors, officers,
employees and agents from, and discharge, release, and hold each of them harmless against, any and
all losses, liabilities, penalties, actions, judgments, suits, costs, disbursements, claims or
damages to which any of them may become subject, insofar as such losses, liabilities, penalties,
actions, judgments, suits, costs, disbursements, claims or damages arise out of or result from (1)
any actual or proposed use by the Counterparty, or any affiliate of the Counterparty, of any
Qualifying Hedge, (2) any breach by the Guarantor of any provision of any Credit Document, (3) any
investigation, litigation or other proceeding (including any threatened investigation or
proceeding) relating to the foregoing, or (4) any Environmental claim or requirement of
Environmental Laws concerning or relating to the presently or previously-owned or operated
properties, or the operations or business, of the Guarantor or any of its Subsidiaries, and the
Guarantor shall reimburse each Agent, each Bank, each Joint Lead Arranger and each affiliate
thereof and their respective directors, officers, employees and agents, upon demand, for any
reasonable out-of-pocket expenses (including reasonable legal fees) incurred in connection with any
such investigation, litigation or other proceeding; and such indemnification and reimbursement
obligations expressly include any such losses, liabilities, penalties, actions, judgments, suits,
costs, disbursements, claims, damages, or expenses incurred by reason of the negligence (other than
gross negligence) of the Person being indemnified, but exclude any such losses, liabilities,
penalties, actions, judgments, suits, costs, disbursements, claims, damages or expenses incurred by
reason of the gross negligence or willful misconduct of the Person to be indemnified.

          (iii) The Administrative Agent shall have the sole and absolute right to make demands, file suits
and claims, engage in other proceedings and exercise any other rights or remedies available to
collect amounts owed pursuant to the terms of the guaranties and indemnities set forth in this
Article IX and shall do so on the instructions of the Required Banks, subject to Article VII, and
the Administrative Agent shall not need the consent of any other Agent, any Bank or any other
Person (other than the Required Banks) to do so.

     (c) Modifications and Amendment to the Credit Documents. The parties to the Credit
Documents shall have the right to amend or modify such Credit Documents without affecting the
rights provided for in this Article IX.

     SECTION 9.5 Continuing Guaranty. This Article IX is a continuing guaranty and shall (a)
remain in full force and effect until the indefeasible payment in full and termination of the
Obligations, the termination of all Qualifying Hedges, the removal by the Counterparty of all Banks
as parties to the Credit Agreement and the giving of notice to the Administrative Agent by the
Counterparty of such matters, (b) be binding upon the Guarantor and its respective successors and
assigns, (c) inure to the benefit of each of the Agents, Banks and Joint Lead Arrangers and their
respective successors, transferees and permitted assigns, and (d) not be terminated by the
Guarantor or any other Person.

61

 

Without limiting the generality of the foregoing clause (c), any Bank may assign or otherwise
transfer all or any portion of its rights and obligations under this Agreement and the assignee
shall thereupon become vested with all the benefits in respect thereof granted to such Bank herein
or otherwise, provided that such assignment shall be subject to the limitations on assignments set
forth in this Agreement. Upon the indefeasible payment in full and termination of the Obligations,
the termination of all Qualifying Hedges, the removal by the Counterparty of all Banks as parties
to the Credit Agreement and the giving of notice to the Administrative Agent by the Counterparty of
such matters, each guaranty granted by this Article IX shall terminate. Upon any such termination
hereof, the Administrative Agent will, at the Guarantor’s expense, execute and deliver to the
Guarantor such documents as the Guarantor shall reasonably request and take any other actions
reasonably requested to evidence or effect such termination.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

62

 

COUNTERPARTY:

WILLIAMS PRODUCTION RMT COMPANY

	 	 	 	 	 
	 	By:  	/s/ Gary R. Belitz
 	 
	 	 	Name:  	Gary R. Belitz 	 
	 	 	Title:  	Vice President — Finance & Accounting 	 

GUARANTOR:

WILLIAMS PRODUCTION COMPANY, LLC

	 	 	 	 	 

	By:

	 	/s/ Gary R. Belitz
 

Authorized Officer
	 	 

ADMINISTRATIVE AGENT:

CITIBANK, N.A., as Administrative Agent and as Computation Agent

	 	 	 	 	 

	By:

	 	/s/ [ILLEGIBLE]
 

Authorized Officer
	 	 

COMPUTATION AGENT:

CITIGROUP ENERGY INC., as Computation Agent

	 	 	 	 	 

	By:

	 	/s/ [ILLEGIBLE]
 

Authorized Officer
	 	 

COLLATERAL AGENT and PV DETERMINATION AGENT:

CALYON NEW YORK BRANCH, as Collateral Agent and as PV Determination Agent

	 	 	 	 	 

	By:

	 	/s/ Danell Stanley
 

	 	 
	 

	 	Authorized Officer	 	 
	 

	 	Danell Stanley	 	 
	 

	 	Managing Director	 	 

	 	 	 	 	 

	By:

	 	/s/ Michael D. Willis
 

	 	 
	 

	 	Authorized Officer	 	 
	 

	 	Michael D. Willis	 	 
	 

	 	Director	 	 

Signature Page to Credit Agreement

 

 

BANKS:

CITIBANK, N.A.

	 	 	 	 	 

	By:

	 	/s/ [ILLEGIBLE]
 

Authorized Officer
	 	 

CALYON

	 	 	 	 	 

	By:

	 	/s/ [ILLEGIBLE]
 

Authorized Officer
	 	 

	 	 	 	 	 

	By:

	 	/s/ [ILLEGIBLE]
 

Authorized Officer
	 	 

Signature Page to Credit Agreement

 

 

SCHEDULE I

BANK INFORMATION

	 	 	 
	Name of Bank	 	Address for Notices
	Citibank,
N.A.

	 	Citibank, N.A.
	 

	 	250 West Street
	 

	 	10th Floor
	 

	 	New York, New York 10013
	 

	 	Attn: Director Derivatives Operations
	 

	 	Telecopier: (212) 723-2956
	 
	 	 
	 

	 	with copies to:
	 
	 	 
	 

	 	Citicorp North America, Inc.
	 

	 	333 Clay Street, Suite 3700
	 

	 	Houston, Texas 77002
	 

	 	Telecopier: (713) 481-0247
	 

	 	Attn: The Williams Companies, Inc.
	 

	 	Account Officer
	 
	 	 
	Calyon

	 	Calyon
	 

	 	Broadwalk House, 5 Appold Street
	 

	 	London EC2A 2DA, England
	 

	 	Telecopier: (44) 20 7114 6433
	 

	 	Telephone: (44) 20 7214 7007
	 

	 	Attn: Legal Department

 

 

SCHEDULE II

NOTICE INFORMATION FOR CREDIT PARTIES

	 	 	 
	Name of Credit Party	 	Address for Notices
	Williams Production RMT Company

	 	Williams Production RMT Company
	 

	 	One Williams Center, Suite 5000
	 

	 	Tulsa, Oklahoma 74172
	 

	 	Attention: Assistant Treasurer
	 

	 	Telecopier: (918) 573-2065
	 

	 	Telephone: (918) 573-2148
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Williams Production RMT Company
	 

	 	One Williams Center, Suite 5000
	 

	 	Tulsa, Oklahoma 74172
	 

	 	Attention: General Counsel
	 

	 	Telecopier: (918) 573-4503
	 

	 	Telephone: (918) 573-2613
	 
	 	 
	Williams Production Company, LLC

	 	Williams Production Company, LLC
	 

	 	One Williams Center, Suite 5000
	 

	 	Tulsa, Oklahoma 74172
	 

	 	Attention: Assistant Treasurer
	 

	 	Telecopier: (918) 573-2065
	 

	 	Telephone: (918) 573-2148
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Williams Production Company, LLC
	 

	 	One Williams Center, Suite 5000
	 

	 	Tulsa, Oklahoma 74172
	 

	 	Attention: General Counsel
	 

	 	Telecopier: (918) 573-4503
	 

	 	Telephone: (918) 573-2613

 

 

SCHEDULE III

Applicable Credit Support Threshold

     The Applicable Credit Support Threshold for each Bank is based upon the lower rating from S&P
and Moody’s with respect to such Bank’s senior unsecured long-term Dollar-denominated debt or
deposit obligations. For example, if the relevant debt or deposit obligations of a Bank are rated
AA by S&P and A1 by Moody’s, an Applicable Credit Support Threshold of $50,000,000 will apply. If a
Bank has a rating issued by only one of Moody’s and S&P, such single rating shall control. If any
Bank is Unrated, the Applicable Credit Support Threshold for such Bank will be zero. If a Bank has
designated a Designated Affiliate and the Acceptable Bank Guaranty contemplated by Section 2.1(e)
has been executed by a direct or indirect parent of such Bank, then the S&P and Moody’s ratings of
such parent shall be used as the relevant ratings applicable to such Bank.

	 	 	 	 	 	 	 

	S&P Rating
	 	AA- or Higher
	 	Lower than AA-, but higher than or equal to A-
	 	Lower than A-
	 	 	 	 	 	 	 
	Moody’s Rating
	 	Aa3 or higher
	 	Lower than Aa3, but higher than or equal to A3
	 	Lower than A3
	 	 	 	 	 	 	 
	Applicable Credit Support Threshold
	 	$75,000,000
	 	$50,000,000
	 	0

 

 

SCHEDULE IV

LIMITED
PERMITTED LIENS

	(a)	 	The Lien of taxes, customs duties or other governmental charges or assessments that are not
at the time determined (or, if determined, are not at the time delinquent), or that are
delinquent but the validity of which is being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP, if required by such
principles, have been provided on the books of the relevant entity;

	(b)	 	Liens on deposits placed in the Collateral Account, provided that such Liens secure only the
Obligations; and
	 
	(c)	 	Other non-consensual, immaterial Liens.

 

 

SCHEDULE V

GENERAL PERMITTED LIENS

	(a)	 	Liens on property that is not owned by any Credit Party Entity on the Effective Date and that
is subject to any Capital Lease;

	(b)	 	Liens on cash, short term investments and letters of credit given to secure bids, tenders,
trade contracts, leases or government contracts or to secure or in lieu of surety and appeal
bonds or performance and return of money bonds, in each case to secure obligations arising in
the ordinary course of business of a Credit Party Entity.

	(c)	 	Liens on cash, short term investments and letters of credit given to secure public or
statutory obligations and deposits as security for the payment of taxes, other governmental
assessments or other similar governmental charges, in each case to secure obligations of a
Credit Party Entity arising in the ordinary course of business;
	 
	(d)	 	Liens in favor of a Credit Party Entity other than those granted by a Credit Party;

	(e)	 	Liens securing Debt (“Refinancing Indebtedness”) incurred to refund, extend,
refinance or otherwise replace Debt secured by a Lien permitted hereunder; provided
that (i) the principal amount of such Refinancing Indebtedness does not exceed the principal
amount of Debt so refunded, extended, refinanced or otherwise replaced (plus the amount of
penalties, premiums, fees, accrued interest and reasonable expenses and other obligations
incurred in connection therewith) at the time of such refunding, extension, refinancing or
replacement and (ii) the Liens securing the Refinancing Indebtedness are limited to
substantially the same collateral that secured, at the time of such refunding, extension,
refinancing or replacement, the Debt so refunded, extended, refinanced or replaced;

	(f)	 	Liens on cash deposits in the nature of a right of setoff, banker’s lien, counterclaim or
netting of cash amounts owed arising in the ordinary course of business on deposit accounts;

	(g)	 	Liens securing Non-Recourse Debt of a Non-Recourse Subsidiary on the assets (and the income
and proceeds therefrom) of such Non-Recourse Subsidiary that are developed, operated and/or
constructed with the proceeds of (i) such Non-Recourse Debt or investments in such Non-Recourse Subsidiary or (ii) Non-Recourse Debt or investments referred to in clause (i)
refinanced in whole or in part by such Non-Recourse Debt, provided that the aggregate
fair market value of assets on which Liens may be granted pursuant to this paragraph (g) (or
on which Liens may be granted to secure any Refinancing Indebtedness that relates (whether
through one or more refundings, extensions, refinancings or other replacements) to any amount
originally secured pursuant to this paragraph (g)) shall not exceed $250 million;

	(h)	 	Liens on the investments held by a Credit Party Entity in (i) a joint venture securing Debt
and other obligations of such joint venture, or (ii) a Non-Recourse Subsidiary securing Non-
Recourse Debt of such Non-Recourse Subsidiary;

	(i)	 	Any mortgage created or assumed by a Credit Party Entity on oil, gas, coal or other mineral
or timber property, owned or leased by such Credit Party Entity to secure loans for the
purposes of developing such properties, including any interest of the character commonly
referred to as a “production payment”, provided that no Credit Party Entity shall
assume or guarantee such loans or otherwise be liable in respect thereto, provided
further that the aggregate fair market value (determined as of the Effective Date) of
assets that are owned by any Credit Party Entity

 

 

	 	 	on the Effective Date and on which Liens have been granted pursuant to this paragraph (i)
(or pursuant to paragraph (e) in the case of any Refinancing Indebtedness that relates
(whether through one or more refundings, extensions, refinancings or other replacements) to
any amount originally secured by any such assets pursuant to this paragraph (i)) shall not
exceed $150 million;

	(j)	 	Liens that do not secure any Other Present Value Obligation and that are created by operating
agreements, unitization agreements, pooling agreements and production sales contracts, in each
case entered into by a Credit Party Entity in the ordinary course of its business, securing
amounts not yet due or, if due, being contested in good faith in the ordinary course of
business.

	(k)	 	Liens on assets of a Credit Party or any of its Subsidiaries not permitted by
paragraphs (a) through (j) above (including Liens on accounts receivable and related asset
proceeds arising in connection with a receivables financing and Liens on property subject
to any Capital Lease not otherwise permitted by paragraph (a)) securing Debt in a
principal amount that at the time of such incurrence, together with (1) all other Debt
outstanding at the time of such incurrence and secured by Liens on assets of such Credit
Party or any of its Subsidiaries pursuant to this paragraph (k), (2) all Refinancing
Indebtedness secured by assets of such Credit Party or any of its Subsidiaries outstanding
at such time that relates (whether through one or more refundings, extensions,
refinancings or other replacements) to any amount originally secured pursuant to this
paragraph (k) and (3) the aggregate amount of all Attributable Obligations of such Credit
Party and its Subsidiaries, do not exceed $40 million.

Each of the foregoing paragraphs (a) through (k) shall also be deemed to permit (i) appropriate
Uniform Commercial Code and other similar filings to perfect the Liens permitted by such paragraph
and (ii) Liens on the products and proceeds (including insurance, condemnation and eminent domain
proceeds) of and accessions to, and contract or other rights (including rights under insurance
policies and product warranties) derivative of or relating to, the property permitted to be
encumbered under such paragraph, but subject to the same restrictions and limitations herein set
forth as to Liens on such property (including the requirement that such Liens on products,
proceeds, accessions and rights secure only the specified obligations, and in the amount, that such
property is permitted to secure).

 

 

EXHIBIT A

OPINION OF

IN-HOUSE COUNSEL

 

 

			
	James
J. Bender
	 	One Williams Center
	Senior Vice President and
	 	Tulsa, Oklahoma 74172
	General Counsel	 	 
	918/573-8705	 	 
	918/573-5942 fax	 	 
	jim.bender@williams.com	 	 

February 23, 2007

To:

Citibank, N.A., as Administrative Agent

1301 Fannin St., Suite 2300

Houston, Texas 77002

Citigroup Energy Inc., as Computation Agent for the Banks

2800 Post Oak Blvd.

Houston, Texas 77002

Calyon New York Branch, as Collateral Agent

and PV Determination Agent for the Banks, and

Joint Lead Arranger and Co-Book Runner

1301 Avenue of the Americas

New York, New York 10019

Citigroup Global Markets Inc., as Joint lead Arranger and

Co-Book Runner

390 Greenwich Street

New York, New York 10013

And

The financial institutions listed on Schedule A hereto.

Re: Williams Production RMT Company Credit Agreement dated as of February 23. 2007

Ladies and Gentlemen:

     I am the General Counsel of The Williams Companies, Inc., a Delaware corporation
(“Williams”), and in such capacity I am charged with general supervisory responsibilities
for the legal affairs of Williams and its subsidiaries, including Williams Production RMT Company,
a Delaware corporation (the “Company”), Williams Production Company, LLC, a Delaware
limited liability company (“WPC”) and Williams Power Company, Inc., a Delaware corporation
(“Williams

 

 

02/23/07

Page 2

Power”). This opinion is delivered to you pursuant to Section 3.1(d)(i) of the Credit
Agreement, dated as of February 23, 2007 (the “Credit Agreement”), by and among the
Company, WPC, the banks, financial institutions and other institutional lenders listed on the
signature pages thereto as Banks, Citibank, N.A. (“Citibank”), as Administrative Agent, and
Citigroup Energy Inc. (“CEI’), as Computation Agent, and Calyon New York Branch, (“Calyon”)
as Collateral Agent and PV Determination Agent. (The Company, Williams, WPC and Williams Power are
sometimes referred to herein individually as a “Williams Entity” and collectively as the
“Williams Entities.”) Unless otherwise defined herein, capitalized terms used herein shall
have the respective meanings set forth in the Credit Agreement.

     In connection with the opinions expressed herein, I, or attorneys reporting to me, have
examined and relied upon copies of the following documents:

	 	(a)	 	the Credit Agreement;
	 
	 	(b)	 	the Security Agreement dated as of February 23, 2007, between the Company and
Calyon;
	 
	 	(c)	 	the Subordination Agreement dated as of February 23, 2007, between the
Company, as subordinated creditor, WPC, as debtor, and the Administrative Agent;
	 
	 	(d)	 	the Subordination Agreement dated as of February 23, 2007, between WPC, as
subordinated creditor, the Company, as debtor, and the Administrative Agent;
	 
	 	(e)	 	; the Subordination Agreement dated as of February 23, 2007, between the
Williams Power and Williams, as the subordinated creditors, and the Company and WPC,
as the debtors, and the Administrative Agent;
	 
	 	(f)	 	the ISDA 2002 Master Agreement, dated as of February 23, 2007, between the
Company and Calyon;
	 
	 	(g)	 	the ISDA 2002 Master Agreement, dated as of February 23, 2007, between the
Company and CEI;
	 
	 	(h)	 	the Novation Agreement dated as of February 23, 2007, between the Company,
Citibank and CEI;
	 
	 	(i)	 	the letter agreement dated as February 23, 2007, between Calyon and the
Company regarding Pre-Existing Transactions;
	 
	 	(j)	 	the Uncommitted Hedge Facility Agent’s Fee Letter, dated February 23, 2007,
between Citigroup Global Markets Inc. (“CGMI”) and the Company;

 

 

02/23/07

Page 3

	 	(k)	 	the Uncommitted Hedge Facility Agent’s Fee Letter, dated February 2311, 2007,
between Calyon and the Company;
	 
	 	(l)	 	the Uncommitted Hedge Facility Fee Letter, dated February 23, 2007, between
CGMI, Calyon. and the Company;
	 
	 	(m)	 	a Certificate of the Secretary of State of the state of the jurisdiction of
formation of each Williams Entity dated as of a recent date attesting to the continued
corporate or limited liability company existence and good standing of each of the
Williams Entities in that state;
	 
	 	(n)	 	the Certificate of Incorporation or Formation and By-Laws, or Operating
Agreement, as the case may be, of each of the Williams Entities, and all amendments
thereto; and
	 
	 	(o)	 	such other documents as I have deemed necessary or appropriate as a basis for
the opinions set forth below.

     The documents listed in clauses (a) through (I) above shall be referred to individually as a
“Transaction Agreement” and collectively as the “Transaction Agreements.”

     In connection with this opinion, I or other attorneys acting under my supervision have (i)
investigated such questions of law, (ii) examined such corporate documents and records of each of
the Williams Entities and certificates of public officials, and (iii) received such information
from officers and representatives of each of the Williams Entities and made such investigations as
I or other attorneys under my supervision have deemed necessary or appropriate for the purposes of
this opinion. As to certain matters of fact material to the opinions expressed herein, I have
relied on the representations made in the Transaction Agreements. I have not, nor have other
attorneys under my supervision, conducted independent investigations or inquiries to determine the
existence of matters, actions, proceedings, items, documents, facts, judgments, decrees,
franchises, certificates, permits, or the like and have made no independent search of the records
of any court, arbitrator, or governmental authority affecting any Person, and no inference as to my
knowledge thereof shall be drawn from the fact of my representation of any party or otherwise.

     In rendering the opinions herein, I have assumed without independent verification the
authenticity of all documents submitted to me as original and the conformity with the authentic
originals of all documents submitted to me as copies.

     Based upon and subject to the foregoing and the other qualifications, limitations, and
assumptions set forth below and upon such other matters as I have deemed appropriate, I am of the
opinion that:

	 	1.	 	Each of the Williams Entities is duly incorporated or otherwise validly
formed, and is validly existing in good standing under the laws of its respective
jurisdiction of formation or incorporation. Each of the Williams Entities is qualified
as a foreign

 

 

02/23/07

Page 4

	 	 	 	corporation or limited liability company, as the case may be, and in good standing under the laws
of each jurisdiction .where its ownership, lease or operation of property or the conduct of its
business requires such qualification, except to the extent that a failure to so qualify or be in
good standing would not, in the aggregate, (i) result in a material adverse effect on the
performance by any of the Williams Entities of its obligations under the Transaction Agreements or
(ii) materially adversely affect any right or remedy of any addressee hereof.
	 
	 	2.	 	The execution, delivery, and performance by each of the Williams Entities of the Transaction
Agreements to which it is a party (a) have been duly authorized by all necessary corporate or
limited liability company action of each of the Williams Entities, (b) are within the corporate or
limited liability company power and authority of each of the Williams Entities, and (c) do not
contravene the respective certificate of incorporation or formation or the By-Laws or Operating
Agreement, as the case may be, of any Williams Entity.
	 
	 	3.	 	The execution, delivery, and performance by each of the Williams Entities of the Transaction
Agreements to which it is a party do not contravene any law, rule, regulation, order, judgment or
decree applicable to any of the Williams Entities. To my knowledge, the execution, delivery, and
performance by the Company or WPC of the Transaction Agreements to which it is a party do not
result in a breach of, or constitute a default under, any material agreement to which the Company
or WPC is a party or by which it is bound and will not result in or require the creation or
imposition of any Lien prohibited by the Credit Agreement, except that this opinion is not given as
to the Scheduled Contracts as defined and referred to in the opinion of Gibson, Dunn & Crutcher LLP
of even date herewith, and except as would not have a Material Adverse Effect.
	 
	 	4.	 	Each Transaction Agreement has been duly and validly executed and delivered by each of the
Williams Entities that is shown as being a party to such Transaction Agreement.
	 
	 	5.	 	No authorization, consent, approval, license, permission or registration of or with any
governmental authority or, to my knowledge, any other person or entity, which has not been obtained
or is not in full force and effect, is required in connection with the execution, delivery and
performance by each of Williams Entities of the Transaction Agreements to which it is a party,
except to the extent that a failure to obtain such would not, in the aggregate, (i) result in a
material adverse effect on the performance by any of the Williams Entities of its respective
obligations under the Transaction Agreements or (ii) materially adversely affect any right or
remedy of any addressee hereof.
	 
	 	6.	 	There is no action, suit or proceeding pending or, to the best of my knowledge, threatened
against any of the Williams Entities before any court or arbitrator or any

 

 

02/23/07

Page 5

	 	 	 	governmental body, agency or official (a) with respect to the Transaction Agreements to which it is
a party, or (b) except as set forth specifically regarding such Williams Entity in the Public
Filings (as defined below) or as disclosed in the Transaction Agreements, in which I believe there
is a reasonable possibility of an adverse decision, judgment, decree, injunction, order, or award
of any court or government body that I believe could reasonably be expected to, in the aggregate,
(i) result in a material adverse effect on the performance by any of the Williams Entities of its
respective obligations under the Transaction Agreements to which it is a party or (ii) materially
adversely affect any right or remedy of any addressee hereof. As used in this paragraph, “Public
Filings” means all documents which Williams has filed pursuant to Section 13, 14 or 15(d) of the
Securities Exchange Act of 1934, as amended, prior to the date of this opinion.

     The opinions expressed in this letter are subject to the following additional exceptions,
qualifications and limitations:

	 	A.	 	My opinion in paragraph 1 with respect to whether each of the Williams Entities is duly
incorporated or otherwise validly existing, qualified in good standing is based solely on
certificates, dated as of a recent date from the Secretary of State of the State of the
jurisdiction of formation or qualification of each such Williams Entity, certifying as to such
matters.
	 
	 	B.	 	I express no opinion as to the effect on the opinions herein stated of compliance or
non-compliance by any of the Banks or the Agents with any applicable state, federal, or other laws
or regulations applying only to banks, or the legal or regulatory status of any Bank or Agent.
	 
	 	C.	 	Qualification of any statement or opinion herein by the use of the words “to my knowledge” means
that during the course of representation in connection with the transactions contemplated by the
Transaction Agreements, no information has come to the attention of me or attorneys reporting to me
that would give me or such attorneys current actual knowledge of the existence of facts or matters
so qualified. I have not undertaken any investigation to determine the existence of facts, and no
inference as to my knowledge thereof shall be drawn from the fact of the representation by me or
attorneys reporting to me of any party or otherwise.
	 
	 	D.	 	The opinions herein expressed are limited to the matters expressly set forth in this opinion
letter, and no opinion is implied or may be inferred beyond the matters expressly so stated.
	 
	 	E.	 	Without limiting the generality of and subject to the paragraph below, in rendering my opinions
herein I have considered only those laws, statutes, rules and regulations that, in my experience,
are customarily applicable to transactions of the character contemplated by the Transaction
Agreements.

 

 

02/23/07

Page 6

     I am admitted to practice law in the States of Oklahoma and Colorado, and the opinions expressed
herein are based upon and limited exclusively to the Delaware General Corporation Law and the
Delaware Limited Liability Company Act and the laws of the United States of America insofar as any
of such laws are applicable. I render no opinion with respect to any other laws.

     This opinion may not be used or relied upon by, quoted, transmitted to, filed, published or
communicated to any person or entity other than the addressees hereof for any purpose whatsoever
without my prior written consent in each instance. Copies of this opinion may not be provided to
any person other than the addressees, provided that the addressees may provide copies of this
opinion (i) to bank examiners and other regulatory authorities should they so request, (ii) to the
independent auditors and attorneys of the addressees, (iii) pursuant to order or legal process of
any court or governmental agency, (iv) in connection with any legal action to which any addressee
is a party arising out of the transactions contemplated by the Transaction Agreements, (v) to the
proposed permitted assignee of or participant in the interest of any addressee under the
Transaction Agreements, or (vi) to any person to the extent required by law. This opinion speaks as
of its date, and I undertake no, and hereby expressly disclaim any, duty to advise you or any other
person entitled to rely hereon as to any changes of fact or law coming to my attention after the
date hereof

[Remainder of page left intentionally blank]

 

 

Very truly yours,

James J. Bender, Esq.

Signature Page to Bender Opinion

 

 

SCHEDULE A

Citigroup Global Markets Inc. and Calyon New York Branch, as Joint Lead Arrangers and Co-Book
Runners

All Banks from time to time parties to the Credit Agreement

All Agents from time to time parties to the Credit Agreement

 

 

EXHIBIT B

OPINION OF GIBSON, DUNN & CRUTCHER

 

 

February 23, 2007

	 	 	 
	(212) 351-4000
	 	 
	 
	 	97394-00048

(212) 351-4035

Citibank, N.A., as Administrative Agent for the

Banks party to the Credit

Agreement referred to below

1301 Fannin Street

Suite 2300

Houston, Texas 7702

Citigroup Energy Inc., as Computation Agent for the Banks

2800 Post Oak Blvd.

Suite 500

Houston, Texas 77002

Calyon New York Branch, as Collateral Agent and

PV Determination Agent for the Banks and

Joint Lead Arranger and co-book runner

1301 Avenue of the Americas

New York, New York 10019

Citigroup Global Markets Inc., as Joint Lead Arranger and

co-book runner

390 Greenwich Street

New York, New York 10013

The Banks listed on Schedule A hereto

	 	Re:	 	 Williams Production RMT Company — Credit Agreement
dated as of February 23, 2007

Ladies and Gentlemen:

          We have acted as counsel to The Williams Companies, Inc., a Delaware corporation (“TWC”), Williams
Production RMT Company, a Delaware corporation (the

 

 

“Counterparty”), Williams Production Company, LLC, a Delaware limited liability company (the
“Guarantor”), and Williams Power Company, Inc., a Delaware corporation (“Williams Power”), in
connection with the preparation of:

     (i) the Credit Agreement dated as of February 23, 2007 (the “Credit Agreement”) by and among the
Counterparty, the Guarantor, certain banks party thereto (the “Banks”), Citibank, N.A., as
Administrative Agent (the “Administrative Agent”), Citigroup Energy Inc., as Computation Agent, and
Calyon New York Branch, as Collateral Agent (the “Collateral Agent”) and as PV Determination Agent;

     (ii) the Security Agreement dated as of February 23, 2007 (the “Security Agreement”) by and between
the Counterparty and the Collateral Agent;

     (iii) the financing statement on Form UCCl naming the Counterparty as debtor to be filed in the
office of the Secretary of State of Delaware (the “Financing Statement”);

     (iv) the 
 Subordination Agreement, dated as of February 23, 2007, between the Counterparty, as the
subordinated creditor, the Guarantor, as the debtor, and the Administrative Agent;

     (v) the 
 Subordination Agreement, dated as of February 23, 2007, between the Guarantor, as the
subordinated creditor, the Counterparty, as the debtor, and the Administrative Agent;

     (vi) the 
 Subordination Agreement, dated as of February 23, 2007, between Williams Power and TWC, as
the subordinated creditors, the Counterparty and the Guarantor, as the debtors, and the
Administrative Agent;

     (vii) the 
 ISDA 2002 Master Agreement, dated as of February 23, 2007, between Calyon and the
Counterparty;

     (viii) the 
 ISDA 2002 Master Agreement, dated as of February 23, 2007, between Citigroup Energy Inc.
and the Counterparty;

     (ix) the 
 Novation Agreement, dated as of February 23, 2007, between the Counterparty, Citibank,
N.A., as transferor, and Citigroup Energy Inc., as transferee;

     (x) the Letter Agreement, dated February 23, 2007, between Calyon and the Counterparty regarding
pre-existing transactions;

     (xi) the Uncommitted Hedge Facility Agent’s Fee Letter, dated February 23, 2007, between Citigroup
Global Markets Inc. and the Counterparty;

     (xii) the Uncommitted Hedge Facility Agent’s Fee Letter, dated February 23, 2007, between Calyon
New York Branch and the Counterparty; and

Page 2

 

     (xiii) the Uncommitted Hedge Facility Fee Letter, dated February 23, 2007, between Citigroup
Global Markets Inc., Calyon New York Branch and the Counterparty.

                    Each capitalized term used and not defined herein has the meaning assigned to that term in the
Credit Agreement. The documents listed in clauses (i), (ii) and (iv) through (xiii) above are
collectively referred to herein as the “Financing Documents.” WPC, the Counterparty, the Guarantor
and Williams Power are collectively referred to herein as the “Obligors.” The Counterparty’s right,
title and interest in the personal property collateral described in the Security Agreement is
referred to herein as the “UCC Collateral.” The Uniform Commercial Code as enacted and in effect in
the State of New York is referred to herein as the “NYUCC.” The Uniform Commercial Code as enacted
and in effect in the State of Delaware is referred to herein as the “DUCC.” The States of New York
and Delaware are referred to herein as the “Perfection States,” and the NYUCC and the DUCC are each
referred to herein as a “UCC.” All references or sections or other subparts of the NYUCC include
references to the equivalent provisions of the DUCC, unless the context otherwise requires. All
terms defined in a UCC are used herein as defined therein.

                    We have assumed without independent investigation that:

	 	a)	 	The signatures on all documents examined by us are genuine, all individuals executing such
documents had all requisite legal capacity and competency and were duly authorized, the documents
submitted to us as originals are authentic and the documents submitted to us as certified or
reproduction copies conform to the originals;
	 
	 	b)	 	There are no agreements or understandings between or among any of the parties to the Financing
Documents or third parties that would expand, modify or otherwise affect the terms of the Financing
Documents or the respective rights or obligations of the parties thereunder or that would modify,
release, terminate, subordinate or delay the attachment of the security interest and liens granted
thereunder;
	 
	 	c)	 	The Counterparty will have at all times relevant to this opinion rights in the UCC Collateral
within the meaning of Section 9-203(b)(2) of the NYUCC;
	 
	 	d)	 	Each Obligor is a validly existing corporation or limited liability company in good standing
under the laws of the State of Delaware and has all requisite corporate or limited liability
company power to execute, deliver and perform its obligations under the Financing Documents to
which it is a party;
	 
	 	e)	 	The execution and delivery by each Obligor of the Financing Documents to which it is a party and
the performance of its obligations thereunder have been duly authorized by all necessary corporate
or limited liability company action; and

Page 3

 

	 	f)	 	Each Financing Document has been duly executed and delivered by each Obligor party thereto.

                    In rendering this opinion, we have made such inquiries and examined, among other things, originals
or copies, certified or otherwise identified to our satisfaction, of such records, agreements,
certificates, instruments and other documents as we have considered necessary or appropriate for
purposes of this opinion. As to certain factual matters, we have relied to the extent we deemed
appropriate and without independent investigation upon the representations and warranties of the
Obligors in the Financing Documents, certificates of officers of the Obligors copies of which are
attached hereto (collectively, the “Officers’ Certificate”) or certificates obtained from public
officials and others.

                    Based on the foregoing and in reliance thereon, and subject to the assumptions, exceptions,
qualifications and limitations set forth herein, we are of the opinion that:

                    1. Each Financing Document constitutes a legal, valid and binding obligation of each Obligor party
thereto, enforceable against it in accordance with its terms.

                    2. The execution, delivery and performance by any Obligor of the Financing Documents to which it is
a party do not and will not violate, or require any filing with or approval of any governmental
authority or regulatory body of the State of New York or the United States of America under, any
law or regulation of the State of New York or the United States of America applicable to such
Obligor that, in our experience, is generally applicable to transactions in the nature of those
contemplated by the Financing Documents, or the Delaware General Corporation Law or the Delaware
Limited Liability Company Act, except for filings required for the perfection of Liens created
under the Financing Documents.

                    3. None of TWC, the Counterparty or the Guarantor is required to register as an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

                    4. The Counterparty has granted a valid security interest in favor of the Collateral Agent in the
UCC Collateral described in the Security Agreement securing the performance of the obligations
purported to be secured thereby, to the extent a security interest can be created therein under
Article 9 of the NYUCC. Upon the filing of the Financing Statement with the office of the Secretary
of State of Delaware, such security interest in such UCC Collateral will be perfected to the extent
security interests therein can be perfected by the filing of UCCl financing statements under
Article 9 of the DUCC.

                    5. The execution, delivery and performance by each Obligor of the Financing Documents to which it
is a party do not and will not, based solely upon review of the documents which are listed on
Schedule B hereto (each a “Scheduled Contract”), result in a material breach of or default under
any Scheduled Contract.

                    6. The Credit Agreement is effective to perfect the security interest in the Collateral Account by
control (as defined in Section 9-104(a)(2) of the NYUCC). Such security

Page 4

 

interest in the Collateral Account is prior in right to all other security interests therein
created under Article 9 of the NYUCC that are not perfected by control.

          7. The Credit Agreement is effective to perfect the security interests in the Collateral Account
and the securities entitlements therein (together, the “Securities Account Collateral”) by control
(as defined in Section 8-106 of the NYUCC). Such security interests in the Securities Account
Collateral are prior in right to all other security interests therein created under Article 9 of
the NYUCC that are not perfected by control.

     The foregoing opinions are subject to the following exceptions, qualifications and limitations:

          A. We render no opinion herein as to matters involving the laws of any jurisdiction other than the
State of New York and the United States of America and, for purposes of paragraph 2 above, the
Delaware General Corporation Law and the Delaware Limited Liability Company Act and, to the limited
extent set forth below, the DUCC. We are not admitted to practice in the State of Delaware;
however, we are generally familiar with the Delaware General Corporation Law and the Delaware
Limited Liability Company Act as presently in effect and have made such inquiries as we consider
necessary to render the opinions contained in paragraph 2. Furthermore, we have not obtained an
opinion of counsel admitted in Delaware with respect to the perfection of the security interest in
the UCC Collateral. We have, however, examined the applicable provisions of the DUCC as currently
in effect, as those provisions appear in the Uniform Commercial
Code Reporting Service, Section Two
State UCC Variations Binder, published by West Group (updated as of September 2006) (the “UCC
Reporting Service”), and our opinions in paragraph 4 above, to the extent such opinions involve
conclusions as to the perfection of such security interest under the laws of the State of Delaware,
are based solely on such review. This opinion is limited to the effect of the present state (or, to
the extent relating to the DUCC, the state of such laws as reflected in the UCC Reporting Service)
of the laws of the State of New York, the United States of America and, to the limited extent set
forth above, the State of Delaware and the facts as they currently exist. We assume no obligation
to revise or supplement this opinion in the event of future changes in such laws (or reflected in
updates of the UCC Reporting Service after September 2006) or the interpretations thereof or such
facts. Except as expressly set forth in paragraph 3 above, we express no opinion regarding the
Securities Act of 1933, as amended, or any other federal or state securities laws or regulations.

          B. Our opinions set forth in paragraphs 1, 4, 6 and 7 are subject to (i) the effect of any
bankruptcy, insolvency, reorganization, moratorium, arrangement or similar laws affecting the
rights and remedies of creditors generally (including, without limitation, the effect of statutory
or other laws regarding fraudulent transfers or preferential transfers) and (ii) general principles
of equity, including without limitation concepts of materiality, reasonableness, good faith and
fair dealing and the possible unavailability of specific performance, injunctive relief or
other equitable remedies regardless of whether enforceability is considered in a proceeding in
equity or at law.

Page 5

 

          C. We express no opinion regarding the effectiveness of (i) any waiver (whether or not stated as
such) under the Financing Documents of, or any consent thereunder relating to, unknown future
rights or the rights of any party thereto existing, or duties owing to it, as a matter of law; (ii)
any waiver (whether or not stated as such) contained in the Financing Documents of rights of any
party, or duties owing to it, that is broadly or vaguely stated or does not describe the right or
duty purportedly waived with reasonable specificity; (iii) provisions relating to indemnification,
exculpation or contribution, to the extent such provisions may be held unenforceable as contrary to
public policy or federal or state securities laws or due to the gross negligence or willful
misconduct of the indemnified party; (iv) any provision in any Financing Document waiving the right
to object to venue in any court; (v) any agreement to submit to the jurisdiction of any Federal
Court; (vi) any waiver of the right to jury trial; (vii) any provision purporting to establish
evidentiary standards; (viii) any provision to the effect that every right or remedy is cumulative
and may be exercised in addition to any other right or remedy or that the election of some
particular remedy does not preclude recourse to one or more others; or (ix) the availability of
damages or other remedies not specified in the Financing Documents in respect of breach of any
covenants (other than covenants relating to the payment of principal, interest, indemnities,
expenses, fees or other amounts).

          D. We express no opinion as to (i) any waivers or variations of rights of a debtor, including a
guarantor, or duties of a secured party under provisions referred to in Section 9-602 of the NYUCC
or (ii) any provision in the Security Agreement (A) that may be deemed to permit the Collateral
Agent or any other person to sell or otherwise foreclose upon any UCC Collateral, or to apply the
proceeds thereof, except in compliance with the NYUCC, applicable laws of the United States and
other applicable state and local laws, or (B) that may be deemed to impose on the Collateral Agent
standards for the care of the UCC Collateral in the possession or control of the Collateral Agent
that would violate Section 9-207 or 9-208 of the NYUCC or to render such standards inapplicable.

          E. Our opinion is subject to the effect of Section 552 of the United States Bankruptcy Code
(limiting security interests in property acquired after the commencement of a case under the United
States Bankruptcy Code). We call to your attention that under the provisions of the NYUCC certain
third parties, such as protected purchasers of securities or certain purchasers of security
entitlements or financial assets, could acquire an interest in the UCC Collateral free of the
security interests of the Banks and the Collateral Agent, even though such security interests are
perfected.

          F. We express no opinion with respect to (i) the existence, non-existence or value of any UCC
Collateral, (ii) any part of the UCC Collateral that is or may be such that a security interest
therein is not covered by Article 9 of the NYUCC by virtue of Section 9-109, (iii) except as
expressly provided in paragraphs 6 and 7 as to UCC Collateral in the form of deposit accounts,
securities entitlements and securities accounts, the perfection of the security interests in any
portion of the UCC Collateral, including deposit accounts, goods covered by a certificate of title
(such as automobiles), patents, trademarks, copyrights, letter-of-credit rights and money, to the extent that filing of a financing statement is not or may
not be sufficient to

Page 6

 

perfect a security interest therein (whether as a result of requirements for control or possession
of such collateral, the applicability of preemptive United States laws or of certificate of title
statutes or otherwise) and (iv) the law governing perfection of the security interests by filing
under Section 9-301 of the UCC.

          G. We express no opinion with respect to (i) the adequacy or accuracy of the descriptions of the
UCC Collateral contained in the Security Agreement, in the Financing Statement or in any document
prepared in connection therewith, except for the legal adequacy of descriptions of UCC Collateral
to the extent that such descriptions consist of the collateral types defined in the NYUCC (other
than commercial tort claims) or (ii) the enforceability or perfection of any security interest in
the proceeds of any UCC Collateral other than pursuant to Section 9-315 of the UCC of the relevant
Perfection States.

          H. We express no opinion with respect to the priority (and therefore no opinion as to the
respective rights of any creditor, encumbrancer or other third party as against the rights of the
Banks and the Collateral Agent) of any security interest in the UCC Collateral, except as expressly
set forth in paragraphs 6 and 7.

          I. Perfection of the security interests generally will be terminated under the circumstances
described in Sections 9-316, 9-507, 9-508 and 9-515 of the NYUCC, unless appropriate action is
taken as provided therein. Without limitation, (i) all the financing statements filed must be
continued at prescribed intervals by the timely filing of continuation statements and (ii) a new or
amended financing statement may be required to be filed to retain any security interest perfected
by the filing of a financing statement in the event the Counterparty changes its name, identity or
location (as determined under the NYUCC).

          J. In rendering our opinions expressed in paragraph 5 insofar as they require interpretation of
Scheduled Contracts, we express no opinion with respect to the compliance by any Obligor with, or
any financial calculations or data in respect of, financial covenants or tests included in any
Scheduled Contract.

          K. With reference to our opinions in paragraph 6 above, we have assumed without independent
investigation that (i) the Collateral Agent is and at all times hereafter will be the “bank” (as
defined in NYUCC Section 9-102(a)(8)) with which the Collateral Account is maintained, (ii) the
Collateral Account will at all relevant times constitute a “deposit account” within the meaning of
Section 9-102(29) of the NYUCC that is established and maintained in accordance with the Credit
Agreement and (iii) the Credit Agreement will remain in full force and effect at all relevant
times.

          L. We express no opinion with respect to the ownership or quantity of funds from time to time
credited to the Collateral Account. In this connection, we call to your attention that (i) a
transferee of funds from a deposit account, absent collusion, takes the funds free and clear of any
security interest, whether or not in violation of the Financing Documents and (ii) the Banks’ security interest in the Deposit Account may be subject to rights of recoupment or
set-off

Page 7

 

by, or a security interest in the Collateral Account in favor of, the Collateral Agent, except to
the extent that those rights are validly waived.

          M. With reference to our opinions in paragraph 7 above, we have assumed without independent
investigation that (i) the Collateral Agent is and at all times hereafter will be acting in the
capacity of a “securities intermediary” (as defined in NYUCC Section 8-102(a)(14)) for the
Counterparty and the Securities Account Collateral, (ii) the Collateral Account will at all
relevant times constitute a “securities account” within the meaning of Section 8-501(a) of the
NYUCC that is established and maintained in accordance with the Credit Agreement and (iii) the
Credit Agreement will remain in full force and effect at all relevant times.

          N. We express no opinion with respect to the ownership or quantity of financial assets from time to
time credited to the Collateral Account. In this connection, we call to your attention that certain
events, including without limitation (i) a sale or other disposition of any such financial assets
by the Collateral Agent or the Counterparty to third parties, whether or not in violation of the
Financing Documents or the Credit Agreement, (ii) the failure by the Collateral Agent to acquire
free of adverse claims, or its failure to maintain, sufficient financial assets in a quantity
corresponding to the aggregate of all securities entitlements established in favor of its
entitlement holders (including in respect of financial assets that are credited to the Collateral
Account), or (iii) a bankruptcy, insolvency or similar event with respect to any securities
intermediary through which any such financial assets are established or held (including the
Collateral Agent), could result in a reduction in the quantity or value or elimination of the
Securities Account Collateral. Pursuant to Section 9-328(c) of the NYUCC, the Banks’ security
interest in the Collateral Account may be subordinate to a security interest now or hereafter held
by the Collateral Agent in any of the Securities Account Collateral.

     This opinion is rendered to the Joint Lead Arrangers, the Agents and the Banks (the “Financing
Parties”) in connection with the Financing Documents and may not be relied upon by any person other
than the Financing Parties or by the Financing Parties in any other context. The Financing Parties
may not furnish this opinion or copies hereof to any other person except (i) to bank examiners and
other regulatory authorities to the extent required by law or otherwise requested, (ii) to the
independent auditors and attorneys of the Financing Parties, (iii) pursuant to order or legal
process of any court or governmental agency, (iv) in connection with any legal action to which any
Financing Party is a party arising out of the transactions contemplated by the Financing Documents,
or (v) to the proposed permitted assignee of or participant in the interest of any Financing Party
under the Financing Documents. This opinion may not be quoted without the prior written consent of
this Firm.

Very truly yours,

Page 8

 

SCHEDULE
A

BANKS

Citibank, N.A.

Calyon

Page 9

 

SCHEDULE
B

SCHEDULED CONTRACTS

	 	1.	 	Senior Debt Indenture by and among The Williams Companies, Inc. and JPMorgan Chase Bank (as
successor to Bank One Trust Company (formerly known as The First National Bank of Chicago)), as
Trustee, dated as of November 10, 1997, as supplemented by the Fourth Supplemental Indenture dated
as of January 17, 2001 relating to debt issued under such Indenture in the aggregate principal
amount of $400,000,000, the Fifth Supplemental Indenture dated as of January 17, 2001 relating to
debt issued under such Indenture in the aggregate principal amount of $700,000,000, the Sixth
Supplemental Indenture, dated as of January 14, 2002 relating to debt issued under such Indenture
in the aggregate principal amount of $1,000,000,000, the Seventh Supplemental Indenture, dated as
of March 19, 2002 relating to debt issued under such Indenture in the aggregate principal amount of
$650,000,000 (for the 8.125% Notes) and $850,000,000 (for the 8.75% Notes), the Eighth Supplemental
Indenture, dated as of June 3, 2002 relating to debt issued under such Indenture in the aggregate
principal amount of $1,400,000,000, the Ninth Supplemental Indenture, dated as of June 10, 2003
relating to debt issued under such Indenture in the aggregate principal amount of $800,000,000 and
the Tenth Supplemental Indenture, dated as of August 17, 2004, an amendment to the Ninth
Supplemental Indenture.
	 
	 	2.	 	Senior Indenture, by and among The Williams Companies, Inc., (formerly known as
Williams Holdings of Delaware, Inc.) and Citibank, N.A., Trustee, dated as of
February 1, 1996, as amended by the First Supplemental Indenture, dated as of July
31, 1999, by and among Williams Holdings of Delaware, Inc., The Williams
Companies, Inc. and Citibank, N.A.
	 
	 	3.	 	Subordinated Indenture among The Williams Companies, Inc. and JPMorgan Chase Bank as Trustee,
dated as of May 28, 2003 relating to debt issued under such Indenture in the aggregate principal
amount of $300,000,000.
	 
	 	4.	 	Senior Indenture by and among The Williams Companies, Inc. (successor to MAPCO Inc.) and Bank
One Trust Company, N.A. (formerly known as The First National Bank of Chicago), Trustee, dated as
of February 25, 1997, and supplemented by Supplemental Indenture
No. 1 dated as of March 5, 1997 in
the aggregate principal amount of $100,000,000 (for the 7.25% Notes), Supplemental Indenture No. 2
dated as of March 5, 1997 in the aggregate principal amount of $100,000,000 (for the 7.70%
Debentures), the Third Supplemental Indenture dated as of March 31, 1998, and the Fourth
Supplemental Indenture dated as of July 31, 1999.
	 
	 	5.	 	Indenture among Barrett Resources Corporation and Bankers Trust Company as Trustee, dated as of
February 1, 1997 in the aggregate principal amount of

Page 10

 

	 	 	 	$150,000,000 and supplemented by the First Supplemental Indenture dated 2001, the
Second Supplemental Indenture dated August 2, 2001, and the Third Supplemental
Indenture dated as of May 20, 2004.
	 
	 	6.	 	$400,000,000 Credit Agreement, dated as of January 20, 2005, by and among The Williams
Companies, Inc., the banks, financial institutions and other institutional lenders listed on the
signature pages thereto as lenders, and Citibank, N.A. as Agent.
	 
	 	7.	 	$100,000,000 Credit Agreement, dated as of January 20, 2005, by and among The Williams
Companies, Inc., the banks, financial institutions and other institutional lenders listed on the
signature pages thereto as lenders, and Citibank, N.A. as Agent.
	 
	 	8.	 	$500,000,000 Credit Agreement, dated as of September 20, 2005, by and among The Williams
Companies, Inc., the banks, financial institutions and other institutional lenders listed on the
signature pages thereto as lenders, and Citibank, N.A. as Agent.
	 
	 	9.	 	$200,000,000 Credit Agreement, dated as of September 20, 2005, by and among The Williams
Companies, Inc., the banks, financial institutions and other institutional lenders listed on the
signature pages thereto as lenders, and Citibank, N.A. as Agent.
	 
	 	10.	 	$1,500,000,000 Credit Agreement, dated as of May 1, 2006, by and among The
Williams Companies, Inc., Northwest Pipeline Corporation, Transcontinental Gas Pipe Line Corporation, Williams Partners L.P., certain lenders, Citibank, N.A., as
agent, and Citibank, N.A., Bank of America, National Association and JPMorgan
Chase Bank, N.A., as issuing banks.

Page 11

 

WILLIAMS POWER COMPANY, INC.

OFFICERS’ CERTIFICATE

     The undersigned, Thomas G. Noulles and William E. Hobbs, do hereby certify to Gibson,
Dunn & Crutcher LLP (“Gibson, Dunn & Crutcher”), in their capacities as officers of Williams Power
Company, Inc., a Delaware corporation (“Williams Power”), in connection with the Credit Agreement
dated as of February 23, 2006 (the “Credit Agreement”) by and among Williams Production RMT
Company, as Borrower, Williams Production Company, LLC, as Guarantor, certain banks (the “Banks”),
Citibank, N.A., as administrative agent, Citigroup Energy Inc., as computation agent, and Calyon
New York Branch, as collateral agent and as PV determination agent (each an “Agent”), as follows:

          1. We are the duly elected and incumbent Assistant Secretary and Senior Vice President,
respectively, of Williams Power and are authorized to execute this Certificate on behalf of
Williams Power.

          2. We have asked such questions regarding the meaning of any of the provisions of this Certificate
as we have considered necessary.

          3. Prior to the date hereof, Williams Power has delivered to Gibson, Dunn & Crutcher true and
correct copies of the most-current formation documents and by-laws for Williams Power, including
all amendments and restatements, and such documents have not been amended or otherwise modified
since the date shown on the face of such documents or the most recent such amendment or
restatement.

          4. Prior to the date hereof, Williams Power has delivered to Gibson, Dunn & Crutcher copies of all
resolutions and other similar action passed by the board of directors of Williams Power related to
the transactions contemplated by the Credit Agreement.

          5. Schedule B to the GDC Opinion lists all material indentures, material credit agreements and
other material borrowings to which Williams Power is a party.

          6. To the best of our knowledge, each and all of the representations and warranties as to factual
matters relating to Williams Power contained in the Financing Documents are true and correct in all
material respects as of the date of such agreement and as of the date hereof.

          7. To the best of our knowledge, there are no agreements or understandings between or among any
Agent, any Bank, Williams Power or third parties that would expand, modify or otherwise affect the
terms of the Financing Documents referred to in the GDC Opinion or the respective rights or
obligations of the parties thereunder.

     Capitalized terms used herein and not defined herein have the meanings given to such terms in the
Credit Agreement. This Certificate may be executed in two or more
counterparts. A

 

 

copy of this Certificate executed and delivered by facsimile transmission shall be valid for all
purposes.

[Remainder of page intentionally left blank.]

 

 

     IN WITNESS WHEREOF, the undersigned have executed this Certificate as of February 23,2006.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Name:  	Thomas G. Noulles 	 
	 	Title:  	Assistant Secretary 	 
	 	
 	 
	 	Name:  	William E. Hobbs 	 
	 	Title:  	Senior Vice President 	 
	 

 

 

THE WILLIAMS COMPANIES, INC.

WILLIAMS PRODUCTION RMT COMPANY

WILLIAMS PRODUCTION, LLC

OFFICERS’ CERTIFICATE

     The undersigned, Brian K. Shore and Rodney J. Sailor, do hereby certify to Gibson, Dunn &
Crutcher LLP (“Gibson, Dunn & Crutcher”), in their capacities as officers of Williams Production
RMT Company, a Delaware corporation (the “Counterparty”), and on behalf of The Williams Companies,
Inc., a Delaware corporation (“TWC”), and Williams Production Company, LLC, a Delaware limited
liability company (“WPC”), in connection with the Credit Agreement dated as of February 23, 2006
(the “Credit Agreement”) by and among the Counterparty, as Borrower, WPC, as Guarantor, certain
banks (the “Banks”), Citibank, N.A., as administrative agent, Citigroup Energy Inc., as computation
agent, and Calyon New York Branch, as collateral agent and as PV determination agent (each an
“Agent”), as follows:

          1. We are the duly elected and incumbent Secretary and Treasurer, respectively, of the
Counterparty, are officers of TWC and WPC and are authorized to execute this Certificate on behalf
of the Counterparty, TWC and WPC.

          2. We have asked such questions regarding the meaning of any of the provisions of this
Certificate as we have considered necessary.

          3. Prior to the date hereof, the Counterparty, TWC and WPC have delivered to Gibson, Dunn &
Crutcher true and correct copies of the most-current formation documents and by-laws or operating
agreements for the Counterparty, TWC and WPC, including all amendments and restatements, and such
documents have not been amended or otherwise modified since the date shown on the face of such
documents or the most recent such amendment or restatement.

          4. Prior to the date hereof, the Counterparty, TWC and WPC have delivered to Gibson, Dunn &
Crutcher copies of all resolutions and other similar action passed by the respective board of
directors of the Counterparty, TWC and WPC related to the transactions contemplated by the Credit
Agreement.

          5. Schedule B to the GDC Opinion lists all material indentures, material credit agreements and
other material borrowings to which the Counterparty, TWC, WPC or any parent of the Counterparty,
TWC or WPC is a party.

          6. To the best of our knowledge, neither the Counterparty, TWC nor WPC is an “investment
company” within the meaning of the Investment Company Act of 1940, as amended, and the rules and
regulations promulgated thereunder (the “ICA”), on the basis that it is primarily engaged, directly
or through a wholly-owned subsidiary or subsidiaries, in a business or

 

 

businesses other than that of investing, reinvesting, owning, holding, or trading in securities, as
provided in Section 3(b)(l) of the ICA.

          7. To the best of our knowledge, each and all of the representations and warranties as to
factual matters relating to the Counterparty, TWC and WPC contained in the Financing Documents are
true and correct in all material respects as of the date of such agreement and as of the date
hereof.

          8. To the best of our knowledge, there are no agreements or understandings between or among
any Agent, any Bank, the Counterparty, TWC, WPC or third parties that would expand, modify or
otherwise affect the terms of the Financing Documents referred to in the GDC Opinion or the respective rights or obligations of the parties
thereunder.

          9. The encumbrances and restrictions in Section 5.2(e) of the Credit Agreement on the ability
of the Credit Party Entities (i) to pay, directly or indirectly, dividends or make any other
distributions in respect of their Equity Interests (as defined in the TWC Principal Credit
Facility) or pay any Debt (as defined in the TWC Principal Credit Facility) or other obligation
owed, to TWC or any Subsidiary of TWC or (ii) to make loans or advances to TWC or a Subsidiary
thereof, are customary and are not more restrictive in any material respect, taken as a whole, than
the encumbrances and restrictions that were in Section 6.6 of the Term Loan Agreement, dated as of
May 30, 2003, among Williams Production Holdings LLC, the Counterparty, Lehman Brothers Inc. and
Banc of America Securities LLC, as joint advisors, joint lead arrangers and joint book runners,
Bank of America, N.A., as documentation agent, and Lehman Commercial Paper Inc., as administrative
agent.

     Capitalized terms used herein and not defined herein have the meanings given to such terms in
the Credit Agreement. This Certificate may be executed in two or more counterparts. A copy of this
Certificate executed and delivered by facsimile transmission shall be valid for all purposes.

[Remainder of page intentionally left blank.]

 

 

     IN WITNESS WHEREOF, the undersigned have executed this Certificate as of February 23, 2006.

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Name:  	Brian K. Shore 	 
	 	 	Title:  	Secretary 	 

	 	 	 	 	 
	 	  	 	 
	 	 	Name:  	Rodney J. Sailor 	 
	 	 	Title:  	Treasurer 	 

 

 

	 	 	 	 	 

EXHIBIT C

SECURITY AGREEMENT

     This Security Agreement, dated as of February 23, 2007 (as it may be modified, supplemented or
amended from time to time in accordance with its terms, the “Security Agreement”), is between
Williams Production RMT Company, a Delaware corporation (the “Grantor”), and Calyon New York
Branch, as collateral agent (the “Collateral Agent”) for the benefit of the Financial Institutions.

PRELIMINARY STATEMENTS

     A. The Grantor and Williams Production Company, LLC, a Delaware limited liability company, have
entered into a Credit Agreement dated as of February 23, 2007 (as amended or otherwise modified
from time to time, the “Credit Agreement”) with Citibank, N.A., Calyon New York Branch and others.
From time to time, additional parties may be added to, or parties may be deleted from, the Credit
Agreement on the terms set forth therein. The Agents, Banks and each of their respective successors
and permitted assigns are collectively referred to herein as the “Financial Institutions”.

     B. The Credit Agreement provides for collateral to be held by the Collateral Agent for the benefit
of the Financial Institutions under certain circumstances.

     Therefore, pursuant to the terms of the Credit Agreement and to induce the Financial Institutions
to enter into the Credit Agreement, the Grantor hereby agrees with Collateral Agent for the
benefit of the Financial Institutions as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. The following terms shall have the meanings specified below (such meanings
to be equally applicable to both the singular and plural forms of the terms defined), and
capitalized terms used in this Security Agreement but not defined herein shall have the meanings
set forth for such terms in the Credit Agreement

     “Applicable Law” means all applicable statutes, regulations, rules, ordinances, codes, licenses,
permits, orders and approvals of each Governmental Authority having jurisdiction over the Grantor,
the Collateral Agent, the Financial Institutions, the Collateral or the Credit Documents, in each
case as in effect from time to time, and any judicial or administrative interpretation thereof,
including, without limitation, any judicial order, decree or judgment applicable to the Grantor,
the Collateral Agent, the Financial Institutions, the Collateral or the Credit Documents.

     “Collateral” has the meaning set forth in Section 2.1 of this Security Agreement.

     “Proceeds” means “proceeds” as that term is defined in the UCC, and includes, but is not limited
to, all proceeds of any or all of the Collateral, including without limitation (a) any and all
proceeds of, and all claims for, any insurance, indemnity, warranty or guaranty payable from time
to time with respect to any of the Collateral, (b) any and all payments (in any form whatsoever)
made or due and payable from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Collateral by any Governmental
Authority (or any Person acting under color of a Governmental Authority), (c) all proceeds received
or receivable when any or all of the Collateral is

 

 

collected, sold, exchanged or otherwise disposed, whether voluntarily, involuntarily, in
foreclosure or otherwise, and (d) any and all other amounts from time to time paid or payable under
or in connection with any of the Collateral.

     “Secured Obligations” shall mean the Obligations.

     “UCC” shall mean the Uniform Commercial Code in effect in the State of New York, as amended from
time to time.

ARTICLE II

SECURITY INTERESTS

     Section 2.1 Pledge, Assignment and Grant of Security Interests. As collateral security for the
prompt and complete payment and performance when due of all Secured Obligations, the Grantor hereby
assigns and pledges to Collateral Agent for the benefit of the Financial Institutions, and hereby
grants to the Collateral Agent for the benefit of the Financial Institutions, a lien on and
continuing security interest in, to and under the following (all items referred to in this Section
2.1, whether now owned or hereafter acquired and wherever located and whether now existing or
hereafter arising, collectively, the “Collateral”):

	 	(a)	 	all Property from time to time delivered to the Collateral Agent pursuant to Section 2.7 of the
Credit Agreement;
	 
	 	(b)	 	all right, title and interest of the Grantor in or to any Property from time to time delivered
to the Collateral Agent pursuant to Section 2.10 of the Credit Agreement;
	 
	 	(c)	 	all letters of credit from time to time delivered to the Collateral Agent and all Property from
time to time paid or delivered to the Collateral Agent pursuant to or in connection with any letter
of credit, this Security Agreement or any other Credit Document (including, without limitation,
payments pursuant to Section 6.1 of the Credit Agreement);
	 
	 	(d)	 	all right, title or interest of the Grantor in or to any obligation of a Bank to make any
payment or delivery under a Qualifying Hedge;
	 
	 	(e)	 	all right, title and interest of the Grantor in or to any obligation of the Collateral Agent to
deposit into or return to the Collateral Account any cash, securities or other Property;
	 
	 	(f)	 	all investments of, additions to, all substitutions and replacements for and all Proceeds of or
derived from any of the Property referred to in this Section 2.1;
	 
	 	(g)	 	all insurance, indemnities, warranties, guaranties and similar rights pertaining to any of the
Collateral; and
	 
	 	(h)	 	any and all Proceeds of any Collateral.

     Section 2.2 After-Acquired Property. The security interest pledged, assigned and granted to
Collateral Agent pursuant to this Security Agreement is intended to extend to all Collateral that
is the subject of this Security Agreement, whether now owned or hereafter acquired at any time,
irrespective of

 

 

whether such Collateral is in transit or in the Grantor’s, Collateral Agent’s or any other Person’s
constructive, actual or exclusive possession.

     Section 2.3 Obligations Independent. The obligations of the Grantor under this Security Agreement
are independent of the obligations of the Guarantor or any other Person, and a separate action or
actions may be brought and prosecuted against the Grantor to enforce
this Security Agreement, irrespective of whether any action is brought against the Guarantor or any other Person or whether
the Guarantor or any other Person is joined in any such action or actions.

     Section 2.4 Obligations Absolute. The Grantor agrees that it will perform its obligations hereunder
strictly in accordance with the terms of this Security Agreement regardless of any law, regulation
or order now or hereafter in effect in any jurisdiction affecting the Secured Obligations or the
rights of any of the Financial Institutions with respect thereto. The liability of the Grantor
under this Security Agreement shall be absolute and unconditional irrespective of:

	 	(a)	 	any lack of validity or enforceability of any Credit Document or letter of credit;
	 
	 	(b)	 	any change in the time, manner or place of payment of, or in any other term of, all or any of
the Secured Obligations or any other liabilities, or any other amendment or waiver of or any
consent to departure from any Credit Document or letter of credit, including, without limitation,
any increase in the Secured Obligations or any other liabilities resulting from the entering into
of any Hedge or otherwise;
	 
	 	(c)	 	any liquidation, dissolution or termination of existence of, or other change in, any Credit
Party or any other Person;
	 
	 	(d)	 	any bankruptcy, insolvency, receivership or other proceeding involving any Credit Party or any
other Person or any defense that may arise in connection with or as a result of any such
bankruptcy, insolvency, receivership or other proceeding or otherwise;
	 
	 	(e)	 	any taking, exchange, release or non-perfection of any Collateral, or any taking, release or
amendment or waiver of or consent to departure from any letter of credit or any guaranty for all or
any of the Secured Obligations or any other liabilities;
	 
	 	(f)	 	any manner of application of Collateral, or proceeds thereof or of collections on account of
any letter of credit or any guaranty, to all or any of the Secured Obligations or any other
liabilities, or any manner of sale or other disposition of any Collateral for all or any of the
Secured Obligations or any other liabilities or of any other collateral; or
	 
	 	(g)	 	any other circumstances (other than those entitling Grantor to a termination of this Security
Agreement under Section 7.9) which might otherwise constitute a defense available to, or a
discharge of, any Credit Party, a surety or any other Person.

     Section 2.5 Security for Obligations. The security interests and other rights granted pursuant to
this Security Agreement secure, and the Collateral is security for, the prompt performance of the
Secured Obligations and the prompt payment in full in cash when due, whether at stated maturity, by
acceleration or otherwise of the Secured Obligations.

     Section 2.6 Acceptable Security Interest. The Grantor shall promptly take all actions required to
cause an Acceptable Security Interest to exist at all times in all Collateral.

 

 

     Section 2.7 Grantor Remains Liable. Notwithstanding any other provisions of this Security
Agreement to the contrary, (a) the Grantor shall remain liable to perform any and all obligations
imposed on the Grantor under the Credit Documents or with respect to the Collateral and to perform
any and all duties and obligations thereunder to the same extent as if this Security Agreement had
not been executed, (b) the exercise by Collateral Agent of any of its rights hereunder shall not
release the Grantor from any of its duties or obligations under the Credit Documents or with
respect to the Collateral and (c) neither Collateral Agent nor any of the other Financial
Institutions shall have any obligation or liability under the Credit Documents by reason of this
Security Agreement, nor shall Collateral Agent or any other Financial Institution be obligated to
perform any of the obligations or duties of the Grantor hereunder or thereunder or to take any
action to collect or enforce any claim for payment that constitutes Collateral.

     Section 2.8 Power of Attorney. The Grantor hereby constitutes and appoints Collateral Agent as
the Grantor’s attorney-in-fact, at Grantor’s cost and expense, to exercise, in Collateral Agent’s
discretion, all or any of the following powers, which appointment, being coupled with an interest,
shall be irrevocable until this Security Agreement terminates:

	 	(a)	 	to obtain and adjust insurance under insurance policies relating to the Collateral naming the
Grantor as an insured party;
	 
	 	(b)	 	to receive, take, endorse, sign, assign, deliver and collect, all in Collateral Agent’s name or
the Grantor’s name, any and all checks, notes, drafts and other documents or instruments relating
to the Collateral;
	 
	 	(c)	 	to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and
receipts for moneys due and to become due under or in connection with the Collateral;
	 
	 	(d)	 	to receive, open and dispose of all mail addressed to the Grantor with respect to the
Collateral which comes into the possession of Collateral Agent and to notify postal authorities to
change the address for delivery thereof to such address as Collateral Agent designates, with a copy
of such notice to the Grantor;
	 
	 	(e)	 	to request from account debtors of the Grantor or other obligors, in the Grantor’s name or
Collateral Agent’s name or that of Collateral Agent’s designee, information concerning the
Collateral and the amounts owing thereon;
	 
	 	(f)	 	to transmit to account debtors or other obligors obligated on Collateral a notice of Collateral
Agent’s interest therein;
	 
	 	(g)	 	to notify account debtors or other obligors obligated on Collateral to make payment directly to
Collateral Agent; and
	 
	 	(h)	 	to take or bring, in the Grantor’s name or Collateral Agent’s name, all steps, actions, suits
or proceedings deemed by Collateral Agent necessary or desirable to enforce or effect collection of
any of the Collateral or otherwise to enforce compliance with the terms and conditions of any
contract pertaining to any Collateral or the rights of Collateral Agent with respect to any of the
Collateral.

     Section 2.9 Waiver. The Grantor hereby waives promptness, diligence, notice of acceptance and
any other notice (except notices expressly required to be given to the Grantor under this Security
Agreement) with respect to any of the Secured Obligations and this Security Agreement and any
requirement that Collateral Agent or any other Financial Institution protect, secure, perfect or
insure any

 

 

security interest or other Lien or any Property subject thereto or exhaust any right to take any
action against the Grantor or any other Person or any of the Collateral.

     Section 2.10 Subrogation. The Grantor hereby irrevocably waives any and all rights to which it
may be entitled (by operation of law or otherwise) by performing its obligations under this
Security Agreement to be subrogated to the rights of the Financial Institutions against any Credit
Party or any other Person. If any amount shall be paid to the Grantor on account of such
subrogation rights, the Grantor agrees to hold such amount or such payment, as the case may be, in
trust for the benefit of the Financial Institutions, and the Grantor agrees to forthwith pay such
amount or such payment, as the case may be, to the Collateral Agent to be held as Collateral or
credited against and applied upon the Secured Obligations, whether matured or unmatured, in the
same order as provided in Section 5.4 hereof.

     Section 2.11 Financing Statements and Registrations. The Grantor authorizes Collateral Agent
to file in such jurisdictions as determined by Collateral Agent any financing or continuation
statements, and amendments thereto, relating to all or any part of the Collateral without the
signature of the Grantor where permitted by Applicable Law.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     The Grantor, represents and warrants, as of the date hereof and as of each date that a
Qualifying Hedge is entered into, that the Grantor’s (a) chief executive office address is its
address for notices under the Credit Agreement, (b) state of organization and exact legal name, as
reflected in its certificate of incorporation, is as set forth in the first paragraph hereof and
(c) organization number is 3388640, except in each case as the Grantor has otherwise notified the
Collateral Agent after the date hereof.

ARTICLE IV

ADDITIONAL PROVISIONS

     Section 4.1 Payments.

	 	(a)	 	Notices. The Grantor agrees that, upon the request of Collateral Agent, it will notify
each party to any Collateral of the assignment thereof to Collateral Agent, instruct each of them
that all payments due or to become due and all amounts payable to the Grantor under such Collateral
shall, until this Security Agreement has been terminated in accordance with Section 7.9 hereof, be
made to Collateral Agent, and, if requested by Collateral Agent and reasonably feasible, obtain a
written consent and acknowledgement from them in form and substance reasonably acceptable to
Collateral Agent.
	 
	 	(b)	 	Non-Payment to Collateral Agent. Until this Security Agreement has been terminated in
accordance with Section 7.9 hereof, if the Grantor shall receive or otherwise have possession of
any Collateral, the Grantor shall be deemed to hold possession of such Collateral in trust for the
benefit of the Financial Institutions, shall segregate such Collateral from all other Property of
the Grantor, and shall forthwith transmit and deliver such Collateral to the Collateral Agent in
the same form as so received (with any necessary endorsement).

     Section 4.2 Direction to Account Parties. The Grantor agrees that it shall be bound by any
collection, compromise, forgiveness, extension or other action taken by Collateral Agent with
respect to

 

 

the Collateral. Upon the occurrence and during the continuance of an Event of Default, without
notice to or assent from the Grantor, Collateral Agent may apply any or all amounts then or
thereafter deposited with it to the Secured Obligations in accordance with the order provided in
Section 5.4 hereof. The costs and expenses (including reasonable attorneys’ fees) of collection,
whether incurred by the Grantor or Collateral Agent, shall be borne by the Grantor.

     Section 4.3 Contract Rights. The Grantor’s grant, pursuant to Section 2.1 of this Security
Agreement, of a security interest in and on the Collateral includes, but is not limited to:

	 	(a)	 	all (i) of the Grantor’s rights to payment under the Collateral and (ii) payments due and to
become due to the Grantor under the Collateral, in each case whether as contractual obligations,
damages or otherwise;
	 
	 	(b)	 	all of the Grantor’s claims, rights, powers or privileges and remedies under the Collateral;
and
	 
	 	(c)	 	all of the Grantor’s rights under the Collateral to make determinations, to exercise any
election (including, but not limited to, election of remedies) or option or to give or receive any
notice, consent, waiver or approval together with full power and authority with respect to the
Collateral to demand, receive, enforce or collect any of the foregoing rights or any property which
is the subject of the Collateral, to enforce or execute any checks, or other instruments or orders,
to file any claims and to take any action which, in the opinion of Collateral Agent, may be
necessary or advisable in connection with any of the foregoing.

     Section 4.4 Certain Remedies; Possession. Collateral Agent may enforce all remedies, rights,
powers and privileges of the Grantor under any Collateral and/or substitute itself or any nominee
or trustee in lieu of the Grantor as party to any of the Collateral. The Grantor shall have no right to possession of, or control over, any Collateral.

ARTICLE V

REMEDIES

     Section 5.1 Remedies. Upon the occurrence and during the continuance of an Event of Default,
Collateral Agent shall have all the rights and remedies of a secured party under the laws which
govern the creation, perfection or enforcement of security interests hereunder to enforce this
Security Agreement and the security interests contained herein, and, in addition, Collateral Agent
may, upon the occurrence and during the continuance of an Event of Default, in addition to its
other rights and remedies hereunder, including without limitation under Section 5.2 hereof, do any
of the following to the extent permitted by Applicable Law:

	 	(a)	 	personally, or by trustees or attorneys, immediately take possession of the
Collateral or any part thereof, from the Grantor or any other Person who then has
possession of any part thereof with or without notice or process of any Applicable Law,
and for that purpose may enter upon the Grantor’s premises where any of the Collateral is
located and remove the same and use in connection with such removal any and all services,
supplies, aids and other facilities of the Grantor, and

 

 

	 	(b)	 	take possession of the Collateral or any part thereof, by directing the Grantor in writing
to deliver the same to Collateral Agent at any place or places designated by Collateral Agent, in
which event the Grantor shall at its own expense forthwith cause the same to be moved to the place
or places so designated by Collateral Agent and there be delivered to Collateral Agent.

To the extent permitted by Applicable Law, the Grantor’s obligation to deliver the Collateral is of
the essence of this Security Agreement and, accordingly, upon application to a court of equity
having jurisdiction, Collateral Agent shall be entitled to obtain a decree requiring specific
performance by the Grantor of said obligation.

     Section 5.2 Disposition of the Collateral. Any Collateral of which Collateral Agent has taken
possession under or pursuant to Section 5.1 of this Security Agreement and any other Collateral,
whether or not so possessed by Collateral Agent, may, upon the occurrence and during the continuance
of an Event of Default, to the extent permitted by Applicable Law, be sold, leased or otherwise
disposed of under one or more contracts or as an entirety, and without the necessity of gathering
at the place of sale the property to be sold, and in general in such manner, at such time or times,
at such place or places and on such terms as Collateral Agent may, in compliance with any
requirements of Applicable Law, determine to be commercially reasonable. Any such disposition shall
be made upon not less than ten days’ written notice to the Grantor specifying the time such
disposition is to be made and, if such disposition shall be a public sale, specifying the place of
such sale. Any such sale may be adjourned by announcement at the time and place fixed therefor, and
such sale may, without further notice, be made at the time and place to which it was so adjourned.
To the extent permitted by Applicable Law, Collateral Agent or any Financial Institution may itself
bid for and become the purchaser of the Collateral or any item thereof offered for sale at a public
auction without accountability to the Grantor (except to the extent of any surplus money received
as provided in this Security Agreement).

     Section 5.3 Waiver.

	 	(a)	 	Except as otherwise provided in this Security Agreement, the Grantor hereby waives, to the
extent permitted by Applicable Law, notice or judicial hearing in connection with Collateral
Agent’s taking possession or Collateral Agent’s disposition of any of the Collateral, including,
without limitation, any and all prior notice and hearing for any prejudgment remedy or remedies and any such right which the Grantor would otherwise have under any
Applicable Law, and the Grantor hereby further waives, to the fullest extent permitted by
Applicable Law:

	 	(i)	 	all damages occasioned by such taking of possession of any Collateral except to the extent
attributable to the gross negligence or willful misconduct of the Collateral Agent or its agents;
	 
	 	(ii)	 	all other requirements as to the time, place and terms of sale or other requirements with
respect to the enforcement of Collateral Agent’s rights hereunder; and
	 
	 	(iii)	 	all rights of redemption, appraisement, valuation, stay, extension or moratorium now or
hereafter in force under any Applicable Law in order to prevent or delay the enforcement of this
Security Agreement or the absolute sale of the Collateral or any portion thereof.

 

 

	 	(b)	 	To the extent permitted by Applicable Law, any sale of, or the grant of options to purchase, or
any other realization upon, any Collateral shall operate to divest all right, title, interest,
claim and demand, either at law or in equity, of the Grantor therein and thereto.

     Section 5.4 Application of Proceeds. The Collateral and all proceeds of any sale, collection
or other disposition of the Collateral or any part thereof shall be applied (i) first, to payment
of all reasonable costs, fees and expenses, including, without limitation, indemnity payments owing
to, and reasonable attorneys’ fees and expenses incurred by, the respective Agents (including,
without limitation, those expenses incurred by the Collateral Agent in exercising the remedies
hereunder), (ii) second, to the payment of the Secured Obligations (ratably based on the sum of (I)
respective amounts of the Secured Obligations owed to the Banks and Agents (a) following
termination of all Qualifying Hedges pursuant to clause (2) of Section 6.1 of the Credit Agreement
or (b) if such termination is not effected pursuant to such clause (2) and the Required Banks elect
that this clause (b) apply, following termination of all Qualifying Hedges pursuant to the other
terms of the Credit Documents, and (II) an amount estimated in good faith by the Collateral Agent
to be the amount of all other Secured Obligations that may arise thereafter (which other Secured
Obligations shall be paid from time to time ratably by the Collateral Agent to the Banks and Agents
entitled thereto) and (iii) third, the remainder, if any, shall be paid to the Grantor or such
other Persons as may be entitled thereto. Grantor shall be liable for any deficiency remaining
after any collection, sale or other disposition.

     Section 5.5 Remedies Cumulative; No Waiver. Each and every right, power and remedy hereby
specifically given to Collateral Agent shall be in addition to every other right, power and remedy
specifically given under this Security Agreement, under any other Credit Document, under any letter
of credit or now or hereafter existing at law or in equity, or by Applicable Law, and each and
every right, power and remedy whether specifically herein given or otherwise existing may be
exercised from time to time or simultaneously and as often and in such order as may be deemed
expedient by Collateral Agent. All such rights, powers and remedies shall be cumulative, and the
exercise or the partial exercise of one shall not be deemed a waiver of the right to exercise any
other. No delay or omission of Collateral Agent in the exercise any of its rights, remedies and
powers or partial or single exercise thereof and no renewal or extension of any of the Secured
Obligations, shall impair any such right, remedy or power or shall constitute a waiver thereof.

     Section 5.6 Discontinuance of Proceedings. In case Collateral Agent shall have instituted any
proceeding to enforce any right, power or remedy under this Security Agreement by foreclosure,
sale, entry, or otherwise, and such proceeding shall have been discontinued or abandoned for any
reason, or shall have been determined adversely to Collateral Agent, then, in every such case, the
Grantor, Collateral Agent and each holder of any of the Secured Obligations shall be restored to their former positions and rights
hereunder with respect to the Collateral, subject to the security interest created under this
Security Agreement, and all rights, remedies and powers of Collateral Agent shall continue as if no
such proceeding had been instituted.

ARTICLE VI

CONCERNING COLLATERAL AGENT

     Section 6.1 Collateral Agent’s Rights. The provisions of Article VII of the Credit Agreement
shall inure to the benefit of Collateral Agent in respect of this Security Agreement and shall be
binding upon the parties hereto.

 

 

     Section 6.2 Action by Nominees. Notwithstanding anything to the contrary in this Security
Agreement, any and all of the rights, powers and remedies of Collateral Agent under this Security
Agreement may be exercised by any agent, Person or nominee acting on behalf of the Collateral
Agent, which may assign or delegate all or any part of its rights and obligations under this
Security Agreement to any one or more agents, Persons or other nominees.

     Section 6.3 Limitation on Duty of Collateral Agent in Respect of Collateral. Collateral Agent
shall have no duty as to any Collateral in its possession or control (other than to comply with
mandatory provisions of law and for its gross negligence or willful misconduct) or in the
possession or control of any agent or bailee or any income thereon or as to the preservation of
rights against prior parties or any other rights pertaining thereto. Collateral Agent shall not be
liable or responsible for any loss or damage to any of the Collateral, or for any diminution in the
value thereof, by reason of the act or omission of any agent or bailee selected by Collateral
Agent, unless Collateral Agent was grossly negligent in the selection thereof. The Collateral Agent
will not be obligated to invest or pay interest on any of the Collateral, except as provided in
Section 2.12 of the Credit Agreement.

ARTICLE VII

MISCELLANEOUS

     Section 7.1 Notices. Except as otherwise specified herein, all notices, requests, demands,
consents, instructions or other communications hereunder shall be given in accordance with the
terms of Section 8.2 of the Credit Agreement.

     Section 7.2 Amendments; Waivers. Any amendment or waiver to this Security Agreement or any
provision hereof shall only be effective to the extent such amendment or waiver (a) complies with
all of those requirements set forth in Section 8.1 of the Credit Agreement and (b) is executed by
the Persons that would be required to execute a like amendment of the Credit Agreement.
Furthermore, all amendments and waivers to this Security Agreement will be subject to the
limitations and restrictions applicable to amendments and waivers of the Credit Agreement.

     Section 7.3 Successors and Assigns. This Security Agreement shall be binding upon and inure to
the benefit of the Grantor, Collateral Agent and the other Financial Institutions and their
respective successors and permitted assigns.

     Section 7.4 Survival. All agreements, statements, representations and warranties made by the
Grantor herein or in any certificate or other instrument delivered by the Grantor or on the behalf
of the Grantor under this Security Agreement shall be considered to have been relied upon by
Collateral Agent and the other Financial Institutions and shall survive the execution and delivery
of this Security Agreement and the other Credit Documents regardless of any investigation made by
Collateral Agent or any other Financial Institution or on their behalf.

     Section 7.5 Headings Descriptive. The headings of the various articles, sections and
paragraphs of this Security Agreement are for convenience of reference only, do not constitute a
part hereof and shall not affect the meaning or construction of any provision hereof.

     Section 7.6 Severability. In the event any one or more of the provisions contained in this
Security Agreement should be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and therein shall not in
any way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to
replace the invalid,

 

 

illegal or unenforceable provisions with valid provisions the economic effect of which comes as
close as possible to that of the invalid, illegal or unenforceable provisions.

     Section 7.7 Governing Law. This Security Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

     Section 7.8 Collateral Agent May Perform. If the Grantor fails to perform any agreement
contained herein, Collateral Agent may itself perform, or cause the performance of, such agreement,
and the reasonable expenses of Collateral Agent incurred in connection therewith shall be payable
by the Grantor.

     Section 7.9 Termination; Release. When all of the Secured Obligations have been irrevocably
paid and performed in full, all Qualifying Hedges have been terminated, the Grantor removes all
Banks as parties to the Credit Agreement and notifies the Collateral Agent of all such facts, this
Security Agreement shall terminate (except as provided in Section 7.10 of this Security Agreement), and Collateral Agent, at the expense of the Grantor,
will promptly execute and deliver to the Grantor the proper instruments acknowledging the
termination of this Security Agreement, and will duly assign, transfer and deliver to the Grantor
or, in the case of Bank Collateral that is not Retained Bank Collateral, the Bank entitled thereto
(without recourse and without any representation or warranty of any kind), such of the Collateral
as may be in the possession of Collateral Agent and has not theretofore been sold or otherwise
applied or released pursuant to this Security Agreement or the Credit Agreement, and shall take
such other action, at the Grantor’s expense, as the Grantor may reasonably request to effectuate
the foregoing. To the extent any Collateral is sold or otherwise disposed as permitted under this
Security Agreement, such Collateral (unless sold or otherwise disposed to a Credit Party Entity)
shall be sold or otherwise disposed free and clear of the Liens created hereby (which Liens shall
be automatically released upon such permitted sale or other disposition), and the Collateral Agent
shall be authorized to take any actions deemed appropriate by it in order to effect the foregoing.

     Section 7.10 Reinstatement. This Security Agreement shall continue to be effective or be
reinstated, as the case may be, if at any time any amount received by any Financial Institution in
respect of the Secured Obligations is rescinded or must otherwise be restored or returned by any
Financial Institution, including, without limitation, as a result of the insolvency, bankruptcy,
dissolution, liquidation or reorganization of any Credit Party or any other Person, the appointment
of any intervenor or conservator of, or trustee or similar official for, any Credit Party or any
other Person or any substantial part of its Collateral, or otherwise, all as though such amounts
had not been received.

     Section 7.11 Counterparts. This Security Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which, when so
executed, shall be deemed to be an original, and all of which taken together shall constitute one
and the same agreement. Electronic delivery of an executed counterpart of a signature page to this Security Agreement shall be as effective as delivery
of an original executed counterpart of this Security Agreement.

     Section 7.12 No Third Party Beneficiaries. The agreements of the parties hereto are solely for
the benefit of the Grantor, the Collateral Agent and the other Financial Institutions, and no
Person (other than the parties hereto and the Financial Institutions) shall have any rights
hereunder.

     Section 7.13 Information. The Grantor will furnish to Collateral Agent from time to time
statements and schedules further identifying and describing the Collateral and such other reports
in connection with the Collateral as Collateral Agent may reasonably request, all in reasonable
detail.

 

 

     Section 7.14 Costs and Expenses. The Grantor shall pay on demand to Collateral Agent the
amount of any and all reasonable expenses that Collateral Agent may incur in connection with this
Security Agreement in accordance with Section 8.4 of the Credit Agreement.

     Section 7.15 Other Security. The Collateral Agent, in its sole discretion and without notice to
or demand upon the Grantor and without otherwise affecting the obligations applicable hereunder
from time to time, may take and hold other collateral (in addition to the Collateral) for payment
of any Secured Obligations, or any part thereof, and may exchange, enforce or release such other
collateral or any part thereof, and may accept and hold any endorsement or guarantee of payment of
the Secured Obligations or any part thereof, and may release or substitute any endorser or
guarantor or any other Person granting security for or in any way obligated upon any Secured
Obligations, or any part thereof. The Grantor waives and releases any and all right to require
Collateral Agent to collect any of the Secured Obligations from any specific item or items of
Collateral or other collateral or from any other party liable as guarantor or in any other manner
in respect of any of the Secured Obligations or from any letter of credit.

     Section 7.16 Additional Rights of Collateral Agent. In the event of any ambiguity or
uncertainty hereunder or in any notice, instruction or other communication received by the
Collateral Agent hereunder, the Collateral Agent may, in its sole discretion, refrain from taking
any action other than retaining possession of the Collateral, unless the Collateral Agent receives
written instructions, signed by the Grantor and the Required Banks, which eliminates such ambiguity
or uncertainty.

     In the event of any dispute between or conflicting claims by or among the Grantor and any
other Person with respect to any Collateral, the Collateral Agent shall be entitled, in its sole
discretion, to refuse to comply with any and all claims, demands or instructions with respect to
such Collateral so long as such dispute or conflict shall continue, and the Collateral Agent shall
not be or become liable in any way to the Grantor for failure or refusal to comply with such
conflicting claims, demands or instructions. The Collateral Agent shall be entitle to refuse to act
until, in its sole discretion, either (i) such conflicting or adverse claims or demands shall have
been determined by a final order, judgment or decree of a court of competent jurisdiction, which
order, judgment or decree is not subject to appeal, or settled by agreement between the conflicting
parties as evidenced in a writing satisfactory to the Collateral Agent or (ii) the Collateral Agent
shall have received security or an indemnity satisfactory to it sufficient to hold it harmless from
and against any and all losses which it may incur by reason of so acting. The Collateral Agent may,
in addition, elect, in its sole discretion, to commence an interpleader action or seek other
judicial relief or orders as it may deem, in its sole discretion, necessary. The costs and expenses
(including reasonable attorneys’ fees and expenses) incurred in connection with such proceeding
shall be paid by the Grantor.

     IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be executed and
delivered by their duly authorized officers as of the date first above written.

 

 

	 	 	 	 	 
	 	COLLATERAL AGENT:

CALYON NEW YORK BRANCH, solely in its capacity as Collateral Agent
 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GRANTOR:

WILLIAMS PRODUCTION RMT COMPANY, a

Delaware corporation

	 
	 	  	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT D

	 	 	 	 	 	 	 

	YR200_ WILLIAMS RESERVES

	 	 	 	DATE:	 	  02/13/0_
	   USING FLAT PRICING

	 	 	 	TIME:
	 	 13:47:23
	   GRAND TOTAL

	 	 	 	FILE:
	 	 AATEST
	   ***EXAMPLE***

	 	 	 	  PROP:
	 	  51
	 

	 	R E  S  E  R  V  E  S    A  N  D     E  C  O  N  O  M  I  C  S
	 	STID:
	 	 BASE
	 

	 	 	 	.CMD:
	 	 CURRENT:
	 

	 	 	 	.OUT:	 	 

AS OF DECEMBER 31, 200_

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	PRICES	 	 	OPERATIONS, M$	 	 	 	 	 	 	 	 	 	 	10.00 PCT	 
	END	 	GROSS PRODUCTION	 	 	NET PRODUCTION	 	 	OIL	 	 	GAS	 	 	NET OPER	 	 	SEV+ADV	 	 	NET OPER	 	 	CAPITAL	 	 	CASH FLOW	 	 	CUM. DISC	 
	MO-YR	 	OIL, MBBL	 	 	GAS, MMCF	 	 	OIL, MBBL	 	 	GAS, MMCF	 	 	$/B	 	 	$/M	 	 	REVENUES	 	 	TAXES	 	 	EXPENSES	 	 	COSTS, M$	 	 	BTAX, M$	 	 	BTAX, M$	 
	12-07
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-08
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-09
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-11
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-12
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-13
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-14
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-15
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-16
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-17
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-19
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-20
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-22
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-32
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-34
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12-36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	S TOT
	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.00	 	 	 	.00	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	REM.
	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.00	 	 	 	.00	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.00	 	 	 	.00	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 	 	 	.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CUM.	 	 	.000	 	 	 	.000	 	 	 	 	 	 	NET OIL REVENUES (M$)	 	 	 	 	 	 	.000	 	 	PRESENT WORTH PROFILE

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	NET GAS REVENUES (M$)	 	 	 	 	 	 	.000	 	 	DISC	 	PW OF NET	 	DISC	 	PW OF NET
	ULT.
	 	 	.000	 	 	 	.000	 	 	 	 	 	 	TOTAL REVENUES (M$)	 	 	 	 	 	 	.000	 	 	RATE	 	BTAX, M$	 	RATE	 	BTAX, M$
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BTAX RATE OF RETURN (PCT)	 	 	.00	 	 	PROJECT LIFE (YEARS)	 	 	 	 	 	 	-2.900	 	 	 	.0	 	 	 	.000	 	 	 	30.0	 	 	 	.000	 
	BTAX PAYOUT	 	 	12/31/200_	 	 	DISCOUNT RATE (PCT)	 	 	 	 	 	 	10.000	 	 	 	2.0	 	 	 	.000	 	 	 	35.0	 	 	 	.000	 
	BTAX PAYOUT (DISC)	 	 	12/31/200_	 	 	GROSS OIL WELLS	 	 	 	 	 	 	.000	 	 	 	5.0	 	 	 	.000	 	 	 	40.0	 	 	 	.000	 
	BTAX NET INCOME/INVEST	 	 	.00	 	 	GROSS GAS WELLS	 	 	 	 	 	 	1.000	 	 	 	8.0	 	 	 	.000	 	 	 	45.0	 	 	 	.000	 
	BTAX NET INCOME/INVEST (DISC)	 	 	.00	 	 	GROSS WELLS	 	 	 	 	 	 	1.000	 	 	 	10.0	 	 	 	.000	 	 	 	50.0	 	 	 	.000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	12.0	 	 	 	.000	 	 	 	60.0	 	 	 	.000	 
	INITIAL W.I. FRACTION	 	 	1.000000	 	 	INITIAL NET OIL FRACTION	 	 	 	 	 	 	.000000	 	 	 	15.0	 	 	 	.000	 	 	 	70.0	 	 	 	.000	 
	FINAL W.I. FRACTION	 	 	1.000000	 	 	FINAL NET OIL FRACTION	 	 	 	 	 	 	.000000	 	 	 	18.0	 	 	 	.000	 	 	 	80.0	 	 	 	.000	 
	PRODUCTION START DATE	 	 	1/01/0_	 	 	INITIAL NET GAS FRACTION	 	 	 	 	 	 	.800000	 	 	 	20.0	 	 	 	.000	 	 	 	90.0	 	 	 	.000	 
	MONTHS IN FIRST LINE	 	 	12.00	 	 	FINAL NET GAS FRACTION	 	 	 	 	 	 	.800000	 	 	 	25.0	 	 	 	.000	 	 	 	100.0	 	 	 	.000	 

 

EXHIBIT E

[Form of ISDA Master Agreement]

 

 

International Swaps and Derivatives Association, Inc.

2002 MASTER AGREEMENT

dated as of February 23, 2007

and Williams Production RMT Company

have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that
are or will be governed by this 2002 Master Agreement, which includes the schedule (the
“Schedule”), and the documents and other confirming evidence (each a “Confirmation”) exchanged
between the parties or otherwise effective for the purpose of confirming or evidencing those
Transactions. This 2002 Master Agreement and the Schedule are together refereed to as this “Master’
Agreement”.

Accordingly, the parties agree as follows:

1. Interpretation

(a) Definitions. The terms defined in Section 14 and elsewhere in this Master Agreement will have
the meanings therein specified for the purpose of this Master Agreement.

(b) Inconsistency. In the event of any inconsistency between the provisions of the Schedule and the
other provisions of this Master Agreement, the Schedule will prevail. In the event of any
inconsistency between the provisions of any Confirmation and this Master Agreement, such
Confirmation will prevail for the purpose of the relevant Transaction.

(c) Single Agreement. All Transactions are entered into in reliance on the fact that this Master
Agreement and all Confirmations form a single agreement between the parties (collectively referred
to as this “Agreement”), and the parties would not otherwise enter into any Transactions.

2. Obligations

(a) General Conditions.

(i) Each party will make each payment or delivery specified in each Confirmation to be made by it,
subject to the other provisions of this Agreement

(ii) Payments under this Agreement will be made on the due date for value on that date in the place
of the account specified in the relevant Confirmation or otherwise pursuant to this Agreement, in
freely transferable funds and in the manner customary for payments in the required currency. Where
settlement is by delivery (that is, other than by payment), such delivery will be made for receipt
on the due date in the manner customary for the relevant obligation unless
otherwise specified in the relevant Confirmation or elsewhere in this Agreement.

 

 

(iii) Each obligation of each party under Section 2(a)(i) is subject to (1) the condition precedent
that no Event of Default or Potential Event of Default with respect to the other party has occurred
and is continuing, (2) the condition precedent that no Early Termination Date in respect of the
relevant Transaction has occurred or been effectively designated and (3) each other condition
specified in this Agreement to be a condition precedent for the purpose of this Section 2(a)(iii).

(b) Change of Account. Either party may change its account for receiving a payment or delivery by
giving notice to the other party at least five Local Business Days prior to the Scheduled
Settlement Date for the payment or delivery to which such change applies unless such other party
gives timely notice of a reasonable objection to such change.

(c)
Netting of Payments. If on any date amounts would otherwise be payable:-

(i) in the same currency; and

(ii) in respect of the same Transaction,

by each party to the other, then, on such date, each party’s obligation to make payment of any such
amount will be automatically satisfied and discharged and, if the aggregate amount that would
otherwise have been payable by one party exceeds the aggregate amount that would otherwise have
been payable by the other party, replaced by an obligation upon the party by which the larger
aggregate amount would have been payable to pay to the other party the excess of the larger
aggregate amount over the smaller aggregate amount.

the parties may elect in respect of two or more Transactions that a net amount and payment
obligation will be determined in respect of all amounts payable on the same date in the same
currency in respect of those Transactions, regardless of whether such amounts are payable in
respect of the same Transaction. The election may be made in the Schedule or any Confirmation by
specifying that “Multiple Transaction Payment Netting” applies to the Transactions identified as
being subject to the election (in which case clause (ii) above will not apply to such
Transactions). If Multiple Transaction Payment Netting is applicable to Transactions, it will apply
to those Transactions with effect from the starting date specified in the Schedule or such
Confirmation, or, if a starting date is not specified in the Schedule or such Confirmation, the
starting date otherwise agreed by the parties in writing. This election may be made separately for
different groups of Transactions and will apply separately to each pairing of Offices through which
the parties make and receive payments or deliveries.

(d) Deduction or Withholding, for Tax.

(i) Gross-Up. All payments under this Agreement will be made without any deduction or withholding
for or on account of any Tax unless such deduction or withholding is required by any applicable
law, as modified by the practice of any relevant governmental revenue authority, then in effect. If
a party is so required to deduct or withhold, then that party (“X”) will:

(1) promptly
notify the other party (“Y”) of such requirement;

(2) pay to the relevant authorities the full amount required to be deducted or withheld (including
the full amount required to be deducted or withheld from any additional amount paid by X to Y under
this Section 2(d)) promptly upon the earlier of determining that such deduction or withholding is
required or receiving notice that such amount has been assessed against Y;

 

 

(3) promptly forward to Y an official receipt (or a certified copy), or other documentation
reasonably acceptable to Y, evidencing such payment to such authorities; and

(4) if such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which Y is
otherwise entitled under this Agreement, such additional amount as is necessary to ensure that the
net amount actually received by Y (free and clear of Indemnifiable Taxes, whether assessed against
X or Y) will equal the full amount Y would have received had no such deduction or withholding been
required However, X will not be required to pay any additional amount to Y to the extent that it
would not be required to be paid but for:

(A) Other failure by Y to comply with or perform any agreement contained in Section 4(a)(i),
4(a)(iii) or 4(d); or

(B) the
failure of a representation made by Y pursuant to Section 3(f) to be accurate and true
unless such failure would not have occurred but for (I) any action taken by a taxing authority, or
brought in a court of competent jurisdiction, after a Transaction is entered into (regardless of
whether such action is taken or, brought with respect to a party to this Agreement) or (II) a
Change in Tax Law.

(ii)
Liability. If.-

(1) X is required by any applicable law, as modified by the practice of any relevant governmental
revenue authority, to make any deduction or withholding in respect of which X would not be required
to pay an additional amount to Y under Section 2(d)(i)(4);

(2) X does not so deduct or withhold; and

(3) a liability resulting from such Tax is assessed directly against X,

then,
except to the extent Y has satisfied or then satisfies the liability resulting from such Tax,
Y will promptly pay to X the amount of such liability (including any related liability for
interest, but including any related liability for penalties only if Y has failed to comply with or
perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).

3. Representations

Each party makes the representations contained in Sections 3(a), 3(b), 3(c), 3(d), 3(e) and 3(f)
and, if specified in the Schedule as applying, 3(g) to the other party (which representations will
be deemed to be repeated by each party on each date on which a Transaction is entered into and, in
the case of the representations in Section 3(f), at all times until the termination of this
Agreement). If any “Additional Representation” is specified in the Schedule or any Confirmation as
applying, the party or parties specified for such Additional Representation will make and, if
applicable, be deemed to repeat such Additional Representation at the time or times specified for
such Additional Representation.

(a) Basic Representations.

(i) Status. It is duly organised and validly existing under the laws of the jurisdiction of its
organisation or incorporation and, if relevant under such laws, in good standing;

 

 

(ii) Powers. It has the power to execute this Agreement and any other documentation relating to
this Agreement to which it is a party, to deliver this Agreement and any other documentation
relating to this Agreement that it is required by this Agreement to deliver and to perform its
obligations under this Agreement and any obligations it has under any Credit Support Document to
which it is a party and has taken all necessary action to authorise such execution, delivery and
performance;

(iii) No Violation or Conflict. Such execution, delivery and performance do not violate or conflict
with any law applicable to it, any provision of its constitutional documents, any order or judgment
of any court or other agency of government applicable to it or any of its assets or any contractual
restriction binding on or affecting it or any of its assets;

(iv) Consents. All governmental and other consents that are required to have been obtained by it
with respect to this Agreement or any Credit Support Document to which it is a party have been
obtained and are in full force and effect and all conditions of any such consents have been
complied with; and

(v) Obligations Binding. Its obligations under this Agreement and any Credit Support Document to
which it is a party constitute its legal, valid and binding obligations, enforceable in accordance
with their respective terms (subject to applicable bankruptcy, reorganisation, insolvency,
moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability,
to equitable principles of general application (regardless of whether enforcement is sought in a
proceeding in equity or at law)).

(b) Absence of Certain Events. No Event of Default or Potential Event of Default or, to its
knowledge, Termination Event with respect to it has occurred and is continuing and no such event or
circumstance would occur as a result of its entering into or performing its obligations under this
Agreement or any Credit Support Document to which it is a party.

(c) Absence of Litigation. There is not pending or, to its knowledge, threatened against it, any of
its Credit Support Providers or any of its applicable Specified Entities any action, suit or
proceeding at law or in equity or before any court, tribunal, governmental body, agency or official
or any arbitrator that is likely to affect the legality, validity or enforceability against it of
this Agreement or any Credit Support Document to which it is a party or, its ability to perform its
obligations under this Agreement or such Credit Support Document

(d) Accuracy of Specified Information. All applicable information that is furnished in writing by
or on behalf of it to the other party and is identified for the purpose of this Section 3(d) in the
Schedule is, as of the date of the information, true, accurate and complete in every material
respect.

(e) Payer Tax Representation. Each representation specified in the Schedule as being made by it for
the purpose of this Section 3(e) is accurate and true

(f) Payee Tax Representations. Each representation specified in the Schedule as being made by it
for the purpose of this Section 3(f) is accurate and true.

(g) No Agency. It is entering into this Agreement, including each Transaction, as principal and not
as agent of any person or entity.

 

 

4. Agreements

Each party agrees with the other that, so long as either party has or, may have any obligation
under this
Agreement or under any Credit Support Document to which it is a party:-

(a) Furnish Specified Information. It will deliver to the other party or, in certain cases under
clause
(iii) below, to such government or taxing authority as the other party reasonably directs: -

(i) any forms, documents or certificates relating to taxation specified in the Schedule or any
Confirmation;

(ii) any other documents specified in the Schedule or any Confirmation; and

(iii) upon reasonable demand by such other party, any form or document that may be required or
reasonably requested in writing in order to allow such other party or its Credit Support Provider
to make a payment under this Agreement or any applicable Credit Support Document without any
deduction or withholding for or on account of any Tax or with such deduction or withholding at a
reduced rate (so long as the completion, execution or submission of such form or document would not
materially prejudice the legal or commercial position of the party in receipt of such demand), with
any such form or document to be accurate and completed in a manner reasonably satisfactory to such
other party and to be executed and to be delivered with any reasonably required certification,

in each case by the date specified in the Schedule or such Confirmation or, if none is specified,
as soon as reasonably practicable.

(b) Maintain Authorisations. It will use all reasonable efforts to maintain in full force and
effect all consents of any governmental or other authority that are required to be obtained by it
with respect to this Agreement or any Credit Support Document to which it is a party and will use
all reasonable efforts to obtain any that may become necessary in the future.

(c) Comply With Laws. It will comply in all material respects with all applicable laws and orders
to which it may be subject if failure so to comply would materially impair its ability to perform
its obligations under this Agreement or any Credit Support Document to which it is a party.

(d) Tax Agreement. It will give notice of any failure of a representation made by it under Section
3(f) to be accurate and true promptly upon learning of such failure.

(e) Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp Tax levied or imposed upon
it or in respect of its execution or performance of this Agreement by a jurisdiction in which it is
incorporated, organised, managed and controlled or considered to have its seat, or where an Office
through which it is acting for the purpose of this Agreement is located (“Stamp Tax Jurisdiction”),
and will indemnify the other party against any Stamp Tax levied or imposed upon the other party or
in respect of the other party’s execution or performance of this Agreement by any such Stamp Tax
Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the other party.

5. Events of Default and Termination Events

(a) Events of Default. The occurrence at any time with respect to a party or, if applicable, any
Credit Support Provider of such party or any Specified Entity of such party of any of the following
events

 

 

constitutes (subject to Sections 5(c) and 6(e)(iv)) an event of default (an “Event of Default”)
with respect to such party:-

(i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under this
Agreement or delivery under Section 2(a)(i) or 9(h)(i)(2) or (4) required to be made by it if such
failure is not remedied on or before the first Local Business Day in the case of any such payment
or the first Local Delivery Day in the case of any such delivery after, in each case, notice of
such failure is given to the party;

(ii) Breach of Agreement; Repudiation of Agreement.

(1) Failure by the party to comply with or, perform any agreement or obligation (other than an
obligation to make any payment under this Agreement or delivery under Section 2(a)(i) or 9(h)(i)(2)
or (4) or to give notice of a Termination Event or any agreement or obligation under Section
4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party in accordance with this
Agreement if such failure is not remedied within 30 days after notice of such failure is given to
the party; or

(2) the party disaffirms, disclaims, repudiates or rejects, in whole or in part, or challenges the
validity of, this Master Agreement, any Confirmation executed and delivered by that party or any
Transaction evidenced by such a Confirmation (or such action is taken by any person or entity
appointed or empowered to operate it or act on its behalf);

(iii) Credit Support Default.

(1) Failure by the party or any Credit Support Provider of such party to comply with or perform any
agreement or obligation to be complied with or performed by it in accordance with any Credit
Support Document if such failure is continuing after any applicable grace period has elapsed;

(2) the expiration or termination of such Credit Support Document or the failing or ceasing of such
Credit Support Document, or any security interest granted by such party or such Credit Support
Provider to the other party pursuant to any such Credit Support Document, to be in full force and
effect for the purpose of this Agreement (in each case other than in accordance with its terms)
prior to the satisfaction of all obligations of such party under each Transaction to which such
Credit Support Document relates without the written consent of the other party; or

(3) the party or such Credit Support Provider disaffirms, disclaims, repudiates or rejects, in
whole or in part, or challenges the validity of, such Credit Support Document (or such action is
taken by any person or entity appointed or empowered to operate it or act on its behalf);

(iv)
Misrepresentation. A representation (other than a representation under Section 3(e) or 3(f))
made or repeated or deemed to have been made or repeated by the party or, any Credit Support
Provider of such party in this Agreement or any Credit Support Document proves to have been
incorrect or misleading in any material respect when made or repeated or deemed to have
been made or repeated;

 

 

(v) Default Under Specified Transaction. The party, any Credit Support Provider of such party or
any applicable Specified Entity of such party:-

(1) defaults (other than by failing to make a delivery) under a Specified Transaction or any credit
support arrangement relating to a Specified Transaction and, after giving effect to any applicable
notice requirement or grace period, such default results in a liquidation of, an acceleration of
obligations under, or an early termination of, that Specified Transaction;

(2) defaults, after giving effect to any applicable notice requirement or grace period, in making
any payment due on the last payment or exchange date of, or, any payment on early termination of, a
Specified Transaction (or, if there is no applicable notice requirement or grace period, such
default continues for at least one Local Business Day);

(3) defaults in making any delivery due under (including any delivery due on the last delivery or
exchange date of) a Specified Transaction or any credit support arrangement relating to a Specified
Transaction and, after giving effect to any applicable notice requirement or grace period, such
default results in a liquidation of, an acceleration of obligations under, or an early termination
of, all transactions outstanding under the documentation applicable to that Specified Transaction;
or

(4) disaffirms, disclaims, repudiates or rejects, in whole or in part, or challenges the validity
of, a Specified Transaction or any credit support arrangement relating to a Specified Transaction
that is, in either, case, confirmed or, evidenced by a document or other confirming evidence
executed and delivered by that party, Credit Support Provider or Specified Entity (or such action
is taken by any person or entity appointed or empowered to operate it or act on its behalf);

(vi) Cross-Default. If “Cross-Default” is specified in the Schedule as applying to the party, the
occurrence or existence of:-

(1) a default, event of default or other similar condition or event (however described) in respect
of such party, any Credit Support Provider of such party or any applicable Specified Entity of such
party under one or more agreements or instruments relating to Specified Indebtedness of any of them
(individually or collectively) where the aggregate principal amount of such agreements or
instruments, either alone or together with the amount, if any, referred to in clause (2) below, is
not less than the applicable Threshold Amount (as specified in the Schedule) which has resulted in
such Specified Indebtedness becoming, or becoming capable at such time of being declared, due and
payable under such agreements or instruments before it would otherwise have been due and payable;
or

(2) a default by such party, such Credit Support Provider or such Specified Entity (individually or
collectively) in making one or more payments under such agreements or instruments on the due date
for payment (after giving effect to any applicable notice requirement or grace period) in an
aggregate amount, either alone or together with the amount, if any, referred to in clause (1)
above, of not less than the applicable Threshold Amount;

(vii) Bankruptcy. The party, any Credit Support Provider of such party or any applicable Specified
Entity of such party:-

 

 

(1) is dissolved (other than pursuant to a consolidation, amalgamation or merger); (2) becomes
insolvent or is unable to pay its debts or fails or admits in writing its inability generally to
pay its debts as they become due; (3) makes a general assignment arrangement or composition with or
for the benefit of its creditors; (4)(A) institutes or has instituted against it, by a regulator,
supervisor or any similar official with primary insolvency, rehabilitative or regulatory
jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction
of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any
other relief under any bankruptcy or insolvency law or other similar law affecting creditors’
rights, or a petition is presented for its winding-up or liquidation by it or such regulator,
supervisor or similar official, or (B) has instituted against it a proceeding seeking a judgment of
insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors’ rights, or a petition is presented for its winding-up or
liquidation, and such proceeding or petition is instituted or presented by a person or entity not
described in clause (A) above and either (I) results in a judgment of insolvency or bankruptcy or
the entry of an order for relief or the making of an order for its winding-up or liquidation or
(II) is not dismissed, discharged, stayed or restrained in each case within 15 days of the
institution or presentation thereof; (5) has a resolution passed for its winding-up, official
management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (6)
seeks or becomes subject to the appointment of an administrator, provisional liquidator,
conservator, receiver, trustee, custodian or other similar official for it or for all or
substantially all its assets; (7) has a secured party take possession of all or substantially all
its assets or has a distress, execution, attachment, sequestration or other legal process levied,
enforced or sued on or’ against all or substantially all its assets and such secured party
maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in
each case within 15 days thereafter; (8) causes or is subject to any event with respect to it
which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events
specified in clauses (1) to (7) above (inclusive); or (9) takes any action in furtherance of, or
indicating its consent to, approval of; or acquiescence in, any of the foregoing acts; or

(viii) Merger Without Assumption. The party or any Credit Support Provider of such party
consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its
assets to, or reorganises, reincorporates or reconstitutes into or as, another entity and, at the
time of such consolidation, amalgamation, merger, transfer, reorganisation, reincorporation or
reconstitution:-

(1) the resulting, surviving or transferee entity fails to assume all the obligations of such party
or such Credit Support Provider under this Agreement or any Credit Support Document to which it or
its predecessor was a party; or

(2) the benefits of any Credit Support Document fail to extend (without the consent of the other
party) to the performance by such resulting, surviving or transferee entity of its obligations
under, this Agreement

(b) Termination Events. The occurrence at any time with respect to a party or, if applicable, any
Credit Support Provider of such party or any Specified Entity of such party of any event specified
below
constitutes (subject to Section 5(c)) an Illegality if the event is specified in clause (i) below,
a Force
Majeure Event if the event is specified in clause (ii) below, a Tax Event if the event is specified
in clause
(iii) below, a Tax Event Upon Merger if the event is specified in clause (iv) below, and, if
specified to be

 

 

applicable, a Credit Event Upon Merger if the event is specified pursuant to clause (v) below or an
Additional Termination Event if the event is specified pursuant to
clause (vi) below:-

(i) Illegality. After giving effect to any applicable provision, disruption fallback or remedy
specified in, or pursuant to, the relevant Confirmation or elsewhere in this Agreement, due to an
event or circumstance (other than any action taken by a party or, if applicable, any Credit Support
Provider of such party) occurring after a Transaction is entered into, it becomes unlawful under
any applicable law (including without limitation the laws of any country in which payment, delivery
or compliance is required by either party or any Credit Support Provider, as the case may be), on
any day, or it would be unlawful if the relevant payment, delivery or compliance were required on
that day (in each case, other than as a result of a breach by the
party of Section 4(b)):-

(1) for the Office through which such party (which will be the Affected Party) makes and receives
payments or deliveries with respect to such Transaction to perform any absolute or contingent
obligation to make a payment or delivery in respect of such Transaction, to receive a payment or
delivery in respect of such Transaction or to comply with any other material provision of this
Agreement relating to such Transaction; or

(2) for such party or any Credit Support Provider of such party (which will be the
Affected Party) to perform any absolute or contingent obligation to make a payment or
delivery which such party or Credit Support Provider has under any Credit Support
Document relating to such Transaction, to receive a payment or delivery under such
Credit Support Document or to comply with any other material provision of such Credit
Support Document;

(ii) Force Majeure Event. After giving effect to any applicable provision, disruption fallback or
remedy specified in, or pursuant to, the relevant Confirmation or elsewhere in this Agreement, by
reason of force majeure or act of state occurring after a Transaction
is entered into, on any day:-

(1) the Office through which such party (which will be the Affected Party) makes and receives
payments or deliveries with respect to such Transaction is prevented from performing any absolute
or contingent obligation to make a payment or delivery in respect of such Transaction, from
receiving a payment or delivery in respect of such Transaction or from complying with any other
material provision of this Agreement relating to such Transaction (or would be so prevented if such
payment, delivery or compliance were required on that day), or it becomes impossible or
impracticable for such Office so to perform, receive or comply (or it would be impossible or
impracticable for such Office so to perform, receive or comply if such payment, delivery or
compliance were required on that day); or

(2) such party or any Credit Support Provider of such party (which will be the Affected Party) is
prevented from performing any absolute or contingent obligation to make a payment or delivery which
such party or Credit Support Provider has under any Credit Support Document relating to such
Transaction, from receiving a payment or delivery under such Credit Support Document or from
complying with any other material provision of such Credit Support Document (or would be so
prevented if such payment, delivery or compliance were required on that day), or it becomes
impossible or impracticable for such party or Credit Support Provider so to perform, receive or
comply (or it would be impossible or impracticable for such party or Credit Support Provider so

 

 

to perform, receive or comply if such payment, delivery or compliance were required on that day),

so long as the force majeure or act of state is beyond the control of such Office, such party or
such Credit Support Provider, as appropriate, and such Office, party or Credit Support Provider
could not, after using all reasonable efforts (which will not require such party or Credit Support
Provider to incur a loss, other than immaterial, incidental expenses), overcome such prevention,
impossibility or impracticability;

(iii) Tax Event. Due to (1) any action taken by a taxing authority, or brought in a court of
competent jurisdiction, after a Transaction is entered into (regardless of whether such action is
taken or brought with respect to a party to this Agreement) or (2) a Change in Tax Law, the party
(which will be the Affected Party) will, or there is a substantial likelihood that it will, on the
next succeeding Scheduled Settlement Date (A) be required to pay to the other party an additional
amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest
under Section 9(h)) or (B) receive a payment from which an amount is required to be deducted or
withheld for or on account of a Tax (except in respect of interest under Section 9(h)) and no
additional amount is required to be paid in respect of such Tax under Section 2(d)(i)(4) (other
than by reason of Section 2(d)(i)(4)(A) or (B));

(iv) Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding Scheduled
Settlement Date will either (1) be required to pay an additional amount in respect of an
Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 9(h)) or
(2) receive a payment from which an amount has been deducted or withheld for or on account of any
Tax in respect of which the other party is not required to pay an additional amount (other than by
reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a party consolidating or
amalgamating with, or merging with or into, or transferring all or substantially all its assets (or
any substantial part of the assets comprising the business conducted by it as of the date of this
Master Agreement) to, or reorganising, reincorporating or reconstituting into or as, another entity
(which will be the Affected Party) where such action does not constitute a Merger Without
Assumption;

(v) Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule as
applying to the party, a Designated Event (as defined below) occurs with respect to such party, any
Credit Support Provider of such party or any applicable Specified Entity of such party (in each
case, “X”) and such Designated Event does not constitute a Merger Without Assumption, and the
creditworthiness of X or, if applicable, the successor, surviving or transferee entity of X, after
taking into account any applicable Credit Support Document, is materially weaker immediately after
the occurrence of such Designated Event than that of X immediately prior to the occurrence of such
Designated Event (and, in any such event, such party or its successor, surviving or transferee
entity, as appropriate, will be the Affected Party). A “Designated Event” with respect to X means
that:-

(1) X consolidates or amalgamates with, or merges with or into, or transfers all or substantially
all its assets (or any substantial part of the assets comprising the business conducted by X as of
the date of this Master Agreement) to, or reorganises, reincorporates or reconstitutes into or as,
another entity;

(2) any person, related group of persons or entity acquires directly or indirectly the beneficial
ownership of (A) equity securities having the power to elect a majority of the

 

 

board of directors (or its equivalent) of X or (B) any other ownership interest enabling it to
exercise control of X; or

(3) X effects any substantial change in its capital structure by means of the issuance, incurrence
or guarantee of debt or the issuance of (A) preferred stock or other securities convertible into or
exchangeable for debt or preferred stock or (B) in the case of entities other than corporations,
any other form of ownership interest; or

(vi) Additional Termination Event. If any “Additional Termination Event” is specified in the
Schedule or any Confirmation as applying, the occurrence of such event (and, in such event, the
Affected Party or Affected Parties will be as specified for such Additional Termination Event in
the Schedule or such Confirmation).

(c) Hierarchy of Events.

(i) An event or circumstance that constitutes or gives rise to an Illegality or a Force
Majeure Event will not, for so long as that is the case, also constitute or give rise to
an Event of Default under Section 5(a)(i), 5(a)(ii)(1) or 5(a)(iii)(1) insofar as such
event or circumstance relates to the failure to make any payment or delivery or a failure
to comply with any other material provision of this Agreement or a Credit Support
Document, as the case may be.

(ii) Except in circumstances contemplated by clause (i) above, if an event or circumstance
which would otherwise constitute or give rise to an Illegality or a Force Majeure Event
also constitutes an Event of Default or any other Termination Event, it will be treated as
an Event of Default or such other Termination Event, as the case may be, and will not
constitute or give rise to an Illegality or a Force Majeure Event.

(iii) If an event or circumstance which would otherwise constitute or give rise to a Force Majeure
Event also constitutes an Illegality, it will be treated as an Illegality, except as described in
clause (ii) above, and not a Force Majeure Event.

(d) Deferral of Payments and Deliveries During Waiting Period. If an Illegality or a Force Majeure
Event has occurred and is continuing with respect to a Transaction, each payment or delivery which
would otherwise be required to be made under that Transaction will be deferred to, and will not be
due until:-

(i) the first Local Business Day or, in the case of a delivery, the first Local Delivery
Day (or the first day that would have been a Local Business Day or Local Delivery Day, as
appropriate, but for the occurrence of the event or circumstance constituting or giving
rise to that Illegality or Force Majeure
Event) following the end of any applicable Waiting Period in respect of that Illegality
or Force Majeure Event, as the case may be; or

(ii) if earlier, the date on which the event or circumstance constituting or giving rise to that
Illegality or Force Majeure Event ceases to exist or, if such date is not a Local Business Day or,
in the case of a delivery, a Local Delivery Day, the first following day that is a Local Business
Day or Local Delivery Day, as appropriate

(e) Inability of Head or Home Office to Perform Obligations of Branch. If (i) an Illegality or
a Force Majeure Event occurs under Section 5(b)(i)(1) or 5(b)(ii)(1) and the relevant Office is not
the Affected Party’s head or home office, (ii) Section 1D(a) applies, (iii) the other party seeks
performance of the relevant obligation or compliance with the relevant provision by the Affected
Party’s head or home

 

 

office and (iv) the Affected Party’s head or home office fails so to perform or comply due to the
occurrence of an event or circumstance which would, if that head or home office were the Office
through which the Affected Party makes and receives payments and deliveries with respect to the
relevant Transaction, constitute or give rise to an Illegality or a Force Majeure Event, and such
failure would otherwise constitute an Event of Default under Section 5(a)(i) or 5(a)(iii)(1) with
respect to such party, then, for so long as the relevant event or circumstance continues to exist
with respect to both the Office referred to in Section 5(b)(i)(1) or 5(b)(ii)(1), as the case may
be, and the Affected Party’s head or home office, such failure will not constitute an Event of
Default under Section 5(a)(i) or 5(a)(iii)(1)

6. Early Termination; Close-Out Netting

(a) Right to Terminate Following Event of Default. If at any time an Event of Default with respect
to a party (the “Defaulting Party”) has occurred and is then continuing, the other party (the “Non-defaulting Party”) may, by not more than 20 days notice to the Defaulting Party specifying the
relevant Event of Default, designate a day not earlier than the day such notice is effective as an
Early Termination Date in respect of all outstanding Transactions. If, however, “Automatic Early
Termination” is specified in the Schedule as applying to a party, then an Early Termination Date in
respect of all outstanding Transactions will occur immediately upon the occurrence with respect to
such party of an Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the
extent analogous thereto, (8), and as of the time immediately preceding the institution of the
relevant proceeding or the presentation of the relevant petition upon. the occurrence with respect
to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent analogous
thereto, (8).

(b) Right to Terminate Following Termination Event.

(i) Notice. If a Termination Event other than a Force Majeure Event occurs, an Affected
Party will, promptly upon becoming aware of it, notify the other party, specifying the
nature of that Termination Event and each Affected Transaction, and will also give the
other party such other information about that Termination Event as the other party may
reasonably require. If a Force Majeure Event occurs, each party will, promptly upon
becoming aware of it, use all reasonable efforts to notify the other party, specifying the
nature of that Force Majeure Event, and will also give the other party such other
information about that Force Majeure Event as the other party may reasonably require.

(ii) Transfer to Avoid Termination Event. If a Tax Event occurs and there is only one
Affected Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the
Affected Party, the Affected Party will, as a condition to its right to designate an Early
Termination Date under Section 6(b)(iv), use all reasonable efforts (which will not
require such party to incur a loss, other than immaterial, incidental expenses) to
transfer within 20 days after it gives notice under Section 6(b)(i) all its rights and
obligations under this Agreement in
respect of the Affected Transactions to another, of its Offices or Affiliates so that
such Termination Event ceases to exist.

If the Affected Party is not able to make such a transfer it will give notice to the other party to
that effect within such 20 day period, whereupon the other party may effect such a transfer, within
30 days after the notice is given under Section 6(b)(i).

Any such transfer by a party under this Section 6(b)(ii) will be subject to and conditional upon
the prior written consent of the other party, which consent will not be withheld if such other
party’s policies in effect at such time would permit it to enter into transactions with the
transferee on the terms proposed.

 

 

(iii) Two Affected Parties. If a Tax Event occurs and there are two Affected Parties, each party
will use all reasonable efforts to reach agreement within 30 days after notice of such occurrence
is given under Section 6(b)(i) to avoid that Termination Event.

(iv) Right to Terminate.

(1) If:-

(A) a transfer under Section 6(b)(ii) or an agreement under Section
6(b)(iii), as the case may be, has not been effected with respect to all
Affected Transactions within 30 days after an Affected Party gives notice
under Section 6(b)(i); or

(B) a Credit Event Upon Merger or an Additional Termination Event occurs, or a Tax Event Upon
Merger occurs and the Burdened Party is not the Affected Party,

the Burdened Party in the case of a Tax Event Upon Merger, any Affected Party in the case of a Tax
Event or an Additional Termination Event if there are two Affected Parties, or the Non-affected Party in the case of a Credit Event Upon Merger or an Additional Termination Event if there is only
one Affected Party may, if the relevant Termination Event is then continuing, by not more than 20
days notice to the other party, designate a day not earlier than the day such notice is effective
as an Early Termination Date in respect of all Affected Transactions.

(2) If at any time an Illegality or a Force Majeure Event has occurred and is then continuing and
any applicable Waiting Period has expired:-

(A) Subject to clause (B) below, either party may, by not more than 20 days notice to the other
party, designate (I) a day not earlier than the day on which such notice becomes effective as an
Early Termination Date in respect of all Affected Transactions or (II) by specifying in that notice
the Affected Transactions in respect of which it is designating the relevant day as an Early
Termination Date, a day not earlier than two Local Business Days following the day on which such
notice becomes effective as an Early Termination Date in respect of less than all Affected
Transactions. Upon receipt of a notice designating an Early Termination Date in respect of less
than all Affected Transactions, the other party may, by notice to the designating party, if such
notice is effective on or before the day so designated, designate that same day as an Early
Termination Date in respect of any or all other Affected Transactions.

(B) An Affected Party (if the Illegality or Force Majeure Event relates to performance by such
party or any Credit Support Provider of such party of an obligation to make any payment or delivery
under, or to compliance with any other material provision of, the relevant Credit Support Document)
will only have the right to designate an Early Termination Date under Section 6(b)(iv)(2)(A) as a
result of an Illegality under Section 5(b)(i)(2) or a Force Majeure Event under Section 5(b)(ii)(2)
following the prior designation by the other party of an Early

 

 

Termination Date, pursuant to Section 6(b)(iv)(2)(A), in respect of less than all Affected
Transactions.

(c) Effect of Designation.

(i) If notice designating an Early Termination Date is given under Section 6(a) or 6(b), the
Early Termination Date will occur on the date so designated, whether or not the relevant Event of
Default or Termination Event is then continuing.

(ii) Upon the occurrence or effective designation of an Early Termination Date, no further payments
or deliveries under Section 2(a)(i) or 9(h)(i) in respect of the Terminated Transactions will be
required to be made, but without prejudice to the other provisions of this Agreement. The amount,
if any, payable in respect of an Early Termination Date will be determined pursuant to Sections
6(e) and 9(h)(ii).

(d) Calculations, Payment Date.

(i) Statement. On or as soon as reasonably practicable following the occurrence of an
Early Termination Date, each party will make the calculations on its part, if any,
contemplated by Section 6(e) and will provide to the other party a statement (1) showing,
in reasonable detail, such calculations (including any quotations, market data or
information from internal sources used in making such calculations), (2) specifying
(except where there are two Affected Parties) any Early Termination Amount payable and (3)
giving details of the relevant account to which any amount payable to it is to be paid In
the absence of written confirmation from the source of a quotation or market data obtained
in determining a Close-out Amount, the records of the party obtaining such quotation or
market data will be conclusive evidence of the existence and accuracy of such quotation or
market data.

(ii) Payment Date. An Early Termination Amount due in respect of any Early Termination Date will,
together with any amount of interest payable pursuant to Section 9(h)(ii)(2), be payable (1) on the
day on which notice of the amount payable is effective in the ease of an Early Termination Date
which is designated or occurs as a result of an Event of Default and (2) on the day which is two
Local Business Days after the day on which notice of the amount payable is effective (or, if there
are two Affected Parties, after the day on which the statement provided pursuant to clause (i)
above by the second party to provide such a statement is effective) in the case of an Early
Termination Date which is designated as a result of a Termination Event.

(e) Payments on Early Termination. If an Early Termination Date occurs, the amount, if any, payable
in respect of that Early Termination Date (the “Early Termination Amount”) will be determined
pursuant to this Section 6(e) and will be subject to Section 6(f).

(i) Events of Default. If the Early Termination Date results from an Event of Default, the Early
Termination Amount will be an amount equal to (1) the sum of (A) the Termination Currency
Equivalent of the Close-out Amount or Close-out Amounts (whether positive or negative) determined
by the Non-defaulting Party for each Terminated Transaction or group of Terminated Transactions, as
the case may be, and (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party less (2) the Termination Currency Equivalent of the Unpaid Amounts owing to
the Defaulting Party. If the Early Termination Amount is a positive number, the Defaulting Party
will pay it to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will
pay the absolute value of the Early Termination Amount to the Defaulting Party.

 

 

(ii)
Termination Events. If the Early Termination Date
results from a Termination Event:-

(1) One Affected Party. Subject to clause (3) below, if there is one Affected Party, the Early
Termination Amount will be determined in accordance with Section 6(e)(i), except that references to
the Defaulting Party and to the Non-defaulting Party will be deemed to be references to the
Affected Party and to the Non-affected Party, respectively.

(2) Two Affected Parties. Subject to clause (3) below, if there are two Affected Parties, each
party will determine an amount equal to the Termination Currency Equivalent of the sum of the
Close-out Amount or Close-out Amounts (whether positive or negative) for each Terminated
Transaction or group of Terminated Transactions, as the case may be, and the Early Termination
Amount will be an amount equal to (A) the sum of (I) one-half of the difference between the higher
amount so determined (by party “X”) and the lower amount so determined (by party “Y”) and (II) the
Termination Currency Equivalent of the Unpaid Amounts owing to X less (B) the Termination Currency
Equivalent of the Unpaid Amounts owing to Y. If the Early Termination Amount is a positive number,
Y will pay it to X; if it is a negative number, X will pay the absolute value of the Early
Termination Amount to Y.

(3) Mid-Market Events. If that Termination Event is an Illegality or a Force Majeure
Event, then the Early Termination Amount will be determined in accordance with clause
(1) or (2) above, as appropriate, except that, for the purpose of determining a Close-out
Amount or Close-out Amounts, the Determining Party will:-

(A) if obtaining quotations from one or more third parties (or from any of the Determining Party’s
Affiliates), ask each third party or Affiliate (I) not to take account of the current
creditworthiness of the Determining Party or any existing Credit Support Document and (II) to
provide mid-market quotations; and

(B) in any other case, use mid-market values without regard to the creditworthiness of the
Determining Party.

(iii)
Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs because
Automatic Early Termination applies in respect of a party, the Early Termination Amount will be
subject to such adjustments as are appropriate and permitted by applicable law to reflect any
payments or deliveries made by one party to the other under this Agreement (and retained by such
other party) during the period from the relevant Early Termination Date to the date for payment
determined under Section 6(d)(ii).

(iv) Adjustment for Illegality or Force Majeure Event. The failure by a party or any Credit Support
Provider of such party to pay, when due, any Early Termination Amount will not constitute an Event
of Default under Section 5(a)(i) or 5(a)(iii)(1) if such failure is due to the occurrence of an
event or circumstance which would, if it occurred with respect to payment, delivery or compliance
related to a Transaction, constitute or give
rise to an Illegality or a Force Majeure Event. Such amount will (1) accrue interest and otherwise
be treated as an Unpaid Amount owing to the other party if subsequently an Early Termination Date
results from an Event of Default, a Credit Event Upon Merger or an Additional Termination Event in
respect of which all outstanding Transactions are Affected Transactions and (2) otherwise accrue
interest in accordance with Section 4(h)(ii)(2).

 

 

(v) Pre Estimate.. The parties agree that an amount recoverable under this Section 6(e) is a
reasonable pre-estimate of loss and not a penalty. Such amount is payable for the loss of bargain
and the loss of protection against future risks, and, except as otherwise provided in this
Agreement, neither party will be entitled to recover any additional damages as a consequence of the
termination of the Terminated Transactions.

(f) Set-Off. Any Early Termination Amount payable to one party (the “Payee”) by the other
party (the “Payer”), in circumstances where there is a Defaulting Party or where there is one
Affected Party in the case where either a Credit Event Upon Merger has occurred or any other
Termination Event in respect of which all outstanding Transactions are Affected Transactions has
occurred, will, at the option of the Non-defaulting Party or the Non-affected Party, as the case
may be (“X”) (and without prior notice to the Defaulting Party or the Affected Party, as the case
may be), be reduced by its set-off against any other amounts (“Other Amounts”) payable by the Payee
to the Payer (whether or not arising under this Agreement, matured or contingent and irrespective
of the currency, place of payment or place of booking of the obligation). To the extent that any
Other Amounts are so set off, those Other Amounts will be discharged promptly and in all respects X
will give notice to the other party of any set-off effected under this Section 6(f).

For this purpose, either the Early Termination Amount or the Other Amounts (or the relevant portion
of such amounts) may be converted by X into the currency in which the other is denominated at the
rate of exchange at which such party would be able, in good faith and using commercially reasonable
procedures, to purchase the relevant amount of such currency.

If an obligation is unascertained, X may in good faith estimate that obligation and set off in
respect of the estimate, subject to the relevant party accounting to the other when the obligation
is ascertained.

Nothing in this Section 6(f) will be effective to create a charge or other security interest. This
Section 6(f) will be without prejudice and in addition to any right of set-off, offset, combination
of accounts, lien, right of retention or withholding or similar right or requirement to which any
party is at any time otherwise entitled or subject (whether by operation of law, contract or
otherwise).

7. Transfer

Subject to Section 6(b)(ii) and to the extent permitted by applicable law, neither this Agreement
nor any interest or obligation in or under this Agreement may be transferred (whether by way of
security of otherwise) by either party without the prior written consent of the other party, except
that:-

(a) a party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation
with, or merger with or into, or transfer of all or substantially all its assets to, another entity
(but without prejudice to any other right or remedy under this Agreement); and

(b) a party may make such a transfer of all or any part of its interest in any Early Termination
Amount payable to it by a Defaulting Party, together with any amounts payable on or with respect to
that interest and any other rights associated with that interest pursuant to Sections 8, 9(h) and
11.

Any purported transfer that is not in compliance with this Section 1 will be void.

8. Contractual Currency

(a) Payment in the Contractual Currency. Each payment under this Agreement will be made in the
relevant currency specified in this Agreement for that payment (the “Contractual Currency”). To the

 

 

extent permitted by applicable law, any obligation to make payments under this Agreement in the
Contractual Currency will not be discharged or satisfied by any tender in any currency other, than
the Contractual Currency, except to the extent such tender results in the actual receipt by the
party to which payment is owed, acting in good faith and using commercially reasonable procedures
in converting the currency so tendered into the Contractual Currency, of the full amount in the
Contractual Currency of all amounts payable in respect of this Agreement. If for any reason the
amount in the Contractual Currency so received falls short of the amount in the Contractual
Currency payable in respect of this Agreement, the party required to make the payment will, to the
extent permitted by applicable law, immediately pay such additional amount in the Contractual
Currency as may be necessary to compensate for the shortfall. If for any reason the amount in the
Contractual Currency so received exceeds the amount in the Contractual Currency payable in respect
of this Agreement, the party receiving the payment will refund promptly the amount of such excess.

(b) Judgments. To the extent permitted by applicable law, if any judgment or order expressed in a
currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in
respect of this Agreement, (ii) for the payment of any amount relating to any early termination in
respect of this Agreement or (iii) in respect of a judgment or order of another court for the
payment of any amount described in clause (i) or (ii) above, the party seeking recovery, after
recovery in full of the aggregate amount to which such party is entitled pursuant to the judgment
or order, will be entitled to receive immediately from the other party the amount of any shortfall
of the Contractual Currency received by such party as a consequence of sums paid in such other
currency and will refund promptly to the other party any excess of the Contractual Currency
received by such party as a consequence of sums paid in such other currency if such shortfall or
such excess arises or results from any variation between the rate of exchange at which the
Contractual Currency is converted into the currency of the judgment or order for the purpose of
such judgment or order and the rate of exchange at which such party is able, acting in good faith
and using commercially reasonable procedures in converting the currency received into the
Contractual Currency, to purchase the Contractual Currency with the amount of the currency of the
judgment or order actually received by such party.

(c) Separate Indemnities. To the extent permitted by applicable law, the indemnities in this
Section 8 constitute separate and independent obligations from the other obligations in this
Agreement, will be enforceable as separate and independent causes of action, will apply
notwithstanding any indulgence granted by the party to which any payment is owed and will not be
affected by judgment being obtained or claim or proof being made for any other sums payable in
respect of this Agreement.

(d) Evidence of Loss. For the purpose of this Section 8, it will be sufficient for a party to
demonstrate that it would have suffered a loss had an actual exchange or purchase been made.

9. Miscellaneous

(a) Entire Agreement. This Agreement constitutes the entire agreement and understanding of the
parties with respect to its subject matter. Each of the parties acknowledges that in entering into
this Agreement it has not relied on any oral or written representation, warranty or, other
assurance (except as provided for or referred to in this Agreement) and waives all rights and
remedies which might otherwise be available to it in respect thereof, except that nothing in this
Agreement will limit or exclude any liability of a party for fraud.

(b) Amendments. An amendment, modification or waiver in respect of this Agreement will only be
effective if in writing (including a writing evidenced by a facsimile transmission) and executed by
each of the parties or confirmed by an exchange of telexes or by an exchange of electronic messages
on an electronic messaging system.

 

 

(c) Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations
of the parties under this Agreement will survive the termination of any Transaction.

(d) Remedies Cumulative. Except as provided in this Agreement, the rights, powers, remedies and
privileges provided in this Agreement are cumulative and not exclusive of any rights, powers,
remedies and privileges provided by law.

(e) Counterparts and Confirmations.

(i) This Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission and by
electronic messaging system), each of which will be deemed an original.

(ii) The parties intend that they are legally bound by the terms of each Transaction from the
moment they agree to those terms (whether orally or otherwise). A Confirmation will be entered into
as soon as practicable and may be executed and delivered in counterparts (including by facsimile
transmission) or be created by an exchange of telexes, by an exchange of electronic messages on an
electronic messaging system or by an exchange of e-mails, which in each case will be sufficient for
all purposes to evidence a binding supplement to this Agreement. The parties will specify therein
or through another effective means that any such counterpart, telex, electronic message or e-mail
constitutes a Confirmation.

(f) No Waiver of Rights. A failure or delay in exercising any right, power or privilege in respect
of this Agreement will not be presumed to operate as a waiver, and a single or partial exercise of
any right, power or privilege will not be presumed to preclude any subsequent or further exercise,
of that right, power or privilege or the exercise of any other right, power or privilege.

(g) Headings. The headings used in this Agreement are for convenience of reference only and are not
to affect the construction of or to be taken into consideration in interpreting this Agreement.

(h) Interest and Compensation.

(i) Prior to Early Termination. Prior to the occurrence or effective designation of an Early
Termination Date in respect of the relevant Transaction:-

(1)
 Interest on Defaulted Payments. If a party defaults in the performance of any payment
obligation, it will, to the extent permitted by applicable law and subject to Section 6(c), pay
interest (before as well as after judgment) on the overdue amount to the other party on demand in
the same currency as the overdue amount, for the period from (and including) the original due date
for payment to (but excluding) the date of actual payment
(and excluding any period in respect of which interest or compensation in respect of the overdue
amount is due pursuant to clause (3)(B) or (C) below), at the Default Rate.

(2) Compensation
for Defaulted Deliveries. If a party defaults in the performance of any obligation
required to be settled by delivery, it will on demand (A) compensate the other party to the extent
provided for in the relevant Confirmation or elsewhere in this Agreement and (B) unless otherwise
provided in the relevant Confirmation or elsewhere in this Agreement, to the extent permitted by
applicable law and subject to Section 6(c), pay to the other party interest (before as well as
after, judgment) on an amount equal to the fair market value of that which was required to be
delivered in the same currency as

 

 

that amount, for the period from (and including) the originally scheduled date for delivery to (but
excluding) the date of actual delivery (and excluding any period in respect of which interest or
compensation in respect of that amount is due pursuant to clause (4) below), at the Default Rate.
The fair market value of any obligation referred to above will be determined as of the originally
scheduled date for delivery, in good faith and using commercially reasonable procedures, by the
party that was entitled to take delivery.

(3) Interest
on Deferred Payments. If:-

(A) a party does not pay any amount that, but for Section 2(a)(iii), would have been payable, it
will, to the extent permitted by applicable law and subject to Section 6(c) and clauses (B) and (C)
below, pay interest (before as well as after judgment) on that amount to the other party on demand
(after such amount becomes payable) in the same currency as that amount, for the period from (and
including) the date the amount would, but for Section 2(a)(iii), have been payable to (but
excluding) the date the amount actually becomes payable, at the Applicable Deferral Rate;

(B) a payment is deferred pursuant to Section 5(d), the party which would otherwise have been
required to make that payment will, to the extent permitted by applicable law, subject to Section
6(c) and for so long as no Event of Default or Potential Event of Default with respect to that
party has occurred and is continuing, pay interest (before as well as after judgment) on the amount
of the deferred payment to the other, party on demand (after such amount becomes payable) in the
same currency as the deferred payment, for the period from (and including) the date the amount
would, but for Section 5(d), have been payable to (but excluding) the earlier, of the date the
payment is no longer deferred pursuant to Section 5(d) and the date during the deferral period upon
which an Event of Default or Potential Event of Default with respect to that party occurs, at the
Applicable Deferral Rate; or

(C) a party fails to make any payment due to the occurrence of an Illegality or a Force Majeure
Event (after giving effect to any deferral period contemplated by clause (B) above), it will, to
the extent permitted by applicable law, subject to Section 6(c) and for so long as the event or
circumstance giving rise to that Illegality or Force Majeure Event continues and no Event of
Default or Potential Event of Default with respect to that party has occurred and is continuing,
pay interest (before as well as after judgment) on the overdue amount to the other party on demand
in the same currency as the overdue amount, for the period from (and including) the date the party
fails to make the payment due to the occurrence of the relevant
Illegality or Force Majeure Event
(or, if later, the date the payment is no longer deferred pursuant to Section 5(d)) to (but
excluding) the earlier of the date the event or circumstance giving rise to that illegality or
Force Majeure Event ceases to exist and the date during the period upon which an Event of Default
or Potential Event of Default with respect to that party occurs (and excluding any period in
respect of which interest or compensation in respect of the overdue

 

 

amount is due pursuant to clause (B) above), at the Applicable Deferral
Rate.

(4) Compensation
for Deferred Deliveries. If-

(A) a party does not perform any obligation that, but for Section
2(a)(iii), would have been required to be settled by delivery;

(B) a delivery is deferred pursuant to Section 5(d); or

(C) a party fails to make a delivery due to the occurrence of an Illegality or a Force Majeure
Event at a time when any applicable Waiting Period has expired,

the party required (or that would otherwise have been required) to make the delivery will, to the
extent permitted by applicable law and subject to Section 6(c), compensate and pay interest to the
other party on demand (after, in the case of clauses (A) and (B) above, such delivery is required)
if and to the extent provided for in the relevant Confirmation or elsewhere in this Agreement.

(ii) Early Termination. Upon the occurrence or effective designation of an Early Termination Date
in respect of a Transaction:-

(1) Unpaid
Amounts. For the purpose of determining an Unpaid Amount in respect of the relevant
Transaction, and to the extent permitted by applicable law, interest will accrue on the amount of
any payment obligation or the amount equal to the fair market value of any obligation required to
be settled by delivery included in such determination in the same currency as that amount, for the
period from (and including) the date the relevant obligation was (or would have been but for
Section 2(a)(iii) or 5(d)) required to have been performed to (but excluding) the relevant Early
Termination Date, at the Applicable Close-out Rate.

(2) Interest
on Early Termination Amounts. If an Early Termination Amount is due in respect of such
Early Termination Date, that amount will, to the extent permitted by applicable law, be paid
together with interest (before as well as after judgment) on that amount in the Termination
Currency, for the period from (and including) such Early Termination Date to (but excluding) the
date the amount is paid, at the Applicable Close-out Rate.

(iii) Interest Calculation. Any interest pursuant to this Section 9(h) will be calculated on the
basis of daily compounding and the actual number of days elapsed.

10. Offices; Multibranch Parties

(a) If Section 10(a) is specified in the Schedule as applying, each party that enters into a
Transaction through an Office other than its head or home office represents to and agrees with the
other party that, notwithstanding the place of booking or its jurisdiction of incorporation or
organisation, its obligations are the same in terms of recourse against it
as if it had entered into the Transaction through its head or home office, except that a party will
not have recourse to the head or home office of the other party in respect of any payment or
delivery deferred pursuant to Section 5(d) for so long as the payment or

 

 

delivery is so deferred. This representation and agreement will be deemed to be repeated by
each party on each date on which the parties enter into a Transaction.

(b) If a party is specified as a Multibranch Party in the Schedule, such party may, subject to
clause (c) below, enter into a Transaction through, book a Transaction in and make and receive
payments and deliveries with respect to a Transaction through any Office listed in respect of that
party in the Schedule (but not any other Office unless otherwise agreed by the parties in writing).

(c) The Office through which a party enters into a Transaction will be the Office specified for
that party in the relevant Confirmation or as otherwise agreed by the parties in writing, and, if
an Office for that party is not specified in the Confirmation or otherwise agreed by the parties in
writing, its head or home office. Unless the parties otherwise agree in writing, the Office through
which a party enters into a Transaction will also be the Office in which it books the Transaction
and the Office through which it makes and receives payments and deliveries with respect to the
Transaction Subject to Section 6(b)(ii), neither party may change the Office in which it books the
Transaction or the Office through which it makes and receives payments or deliveries with respect
to a Transaction without the prior written consent of the other party.

11. Expenses

A Defaulting Party will on demand indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees, execution fees and Stamp Tax, incurred by
such other party by reason of the enforcement and protection of its rights under this Agreement or
any Credit Support Document to which the Defaulting Party is a party or by reason of the early
termination of any Transaction, including, but not limited to, costs of collection.

12. Notices

(a) Effectiveness. Any notice or other communication in respect of this Agreement may be given in
any manner described below (except that a notice or other communication under Section 5 or 6 may
not be given by electronic messaging system or e-mail) to the address or number or in accordance
with the electronic messaging system or e-mail details provided (see the Schedule) and will be
deemed effective as indicated:-

     (i) if in writing and delivered in person or by courier, on the date it is delivered;

     (ii) if sent by telex, on the date the recipient’s answerback is received;

     (iii) if
sent by facsimile transmission, on the date it is received by a responsible employee of
the recipient in legible form (it being agreed that the burden of proving receipt will be on the
sender and will not be met by a transmission report generated by the sender’s facsimile machine);

     (iv) if sent by certified or registered mail (airmail, if overseas) or the equivalent (return
receipt requested), on the date it is delivered or its delivery is attempted;

     (v) if sent by electronic messaging system, on the date it is received; or

     (vi) if sent by e-mail, on the date it is delivered,

unless the date of that delivery (or attempted delivery) or that receipt, as applicable, is not a
Local Business Day or that communication is delivered (or attempted) or received, as applicable,
after the close

 

 

of business on a Local Business Day, in which case that communication will be deemed given and
effective on the first following day that is a Local Business Day.

(b) Change of Details. Either party may by notice to the other change the address, telex or
facsimile number or electronic messaging system or e-mail details at which notices or other
communications are to be given to it.

13. Governing Law and Jurisdiction

(a) Governing Law. This Agreement will be governed by and construed in accordance with the law
specified in the Schedule.

(b) Jurisdiction. With respect to any suit, action or proceedings relating to any dispute arising
out of or in connection with this Agreement (“Proceedings”), each party irrevocably:

(i) submits:-

(1) if this Agreement is expressed to be governed by English law, to (A) the non-exclusive jurisdiction of the English courts if the Proceedings do not involve a
Convention Court and (B) the exclusive jurisdiction of the English courts if the
Proceedings do involve a Convention Court; or

(2) if this Agreement is expressed to be governed by the laws of the State of New
York, to the non-exclusive jurisdiction of the courts of the State of New York and the
United States District Court located in the Borough of Manhattan in New York City;

(ii) waives any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings have been brought in
an inconvenient forum and further waives the tight to object, with respect to such Proceedings,
that such court does not have any jurisdiction over such party; and

(iii) agrees, to the extent permitted by applicable law, that the bringing of Proceedings in any
one or more jurisdictions will not preclude the bringing of Proceedings in any other jurisdiction.

(c) Service of Process. Each party irrevocably appoints the Process Agent, if any, specified
opposite its name in the Schedule to receive, for it and on its behalf, service of process in any
Proceedings. If for any reason any party’s Process Agent is unable to act as such, such party will
promptly notify the other party and within 30 days appoint a substitute process agent acceptable to
the other party The parties irrevocably consent to service of process given in the manner provided
for notices in Section 12(a)(i), 12(a)(iii) or 12(a)(iv). Nothing in this Agreement will affect the
right of either party to serve process in any other manner permitted by applicable law.

(d) Waiver of Immunities. Each party irrevocably waives, to the extent permitted by applicable law,
with respect to itself and its revenues and assets (irrespective of their use or intended use), all
immunity on the grounds of sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of
any court, (iii) relief by way of injunction or order for specific performance or recovery of
property, (iv) attachment of its assets (whether before or after judgment) and (v) execution or
enforcement of any judgment to which it or its revenues or assets might otherwise be entitled in
any Proceedings in the courts of any jurisdiction and irrevocably agrees, to the extent permitted
by applicable law, that it will not claim any such immunity in any Proceedings.

 

 

14. Definitions

As used in this Agreement:-

“Additional Representation” has the meaning specified in Section 3
“Additional Termination Event” has the meaning specified in Section 5(b) “Affected Party” has the
meaning specified in Section 5(b).

“Affected Transactions” means (a) with respect to any Termination Event consisting of an
Illegality, Force Majeure Event, Tax Event or Tax Event Upon Merger, all Transactions affected by
the occurrence of such Termination Event (which, in the case of an Illegality under Section
5(b)(i)(2) of a Force Majeure Event under Section 5(b)(ii)(2), means all Transactions unless the
relevant Credit Support Document references only certain Transactions, in which case those
Transactions and, if the relevant Credit Support Document constitutes a Confirmation for a
Transaction, that Transaction) and (b) with respect to any other Termination Event, all
Transactions.

“Affiliate” means, subject to the Schedule, in relation to any person, any entity controlled,
directly or indirectly, by the person, any entity that controls, directly or indirectly, the person
or any entity directly or indirectly under common control with the person. For this purpose,
“control” of any entity or person means ownership of a majority of the voting power of the entity
or person.

“Agreement” has the meaning specified in Section 1(c).

“Applicable Close-out Rate” means:-

(a) in respect of the determination of an Unpaid Amount:-

(i) in respect of obligations payable or deliverable (or which would have been but for Section
2(a)(iii)) by a Defaulting Party, the Default Rate;

(ii) in respect of obligations payable or, deliverable (or which would have been but for Section
2(a)(iii)) by a Non-defaulting Party, the Non-default Rate;

(iii) in respect of obligations deferred pursuant to Section 5(d), if there is no Defaulting Party
and for so long as the deferral period continues, the Applicable Deferral Rate; and

(iv) in all other cases following the occurrence of a Termination Event (except where interest
accrues pursuant to clause (iii) above), the Applicable Deferral Rate; and

(b) in respect of an Early Termination Amount:-

(i) for the period from (and including) the relevant Early Termination Date to (but excluding) the
date (determined in accordance with Section 6(d)(ii)) on which that amount is payable:-

(1) if the Early Termination Amount is payable by a Defaulting Party, the Default Rate;

(2) if the Early Termination Amount is payable by a Non-defaulting Party, the Non-default Rate;
and

(3) in all other cases, the Applicable Deferral Rate; and

 

 

(ii) for the period from (and including) the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable to (but excluding) the date of actual
payment:-

(1) if a party fails to pay the Early Termination Amount due to the occurrence of an event or
circumstance which would, if it occurred with respect to a payment or delivery under a Transaction,
constitute or give rise to an Illegality or a Force Majeure Event, and for so long as the Early
Termination Amount remains unpaid due to the continuing existence of such event or circumstance,
the Applicable Deferral Rate;

(2) if the Early Termination Amount is payable by a Defaulting Party (but excluding any period in
respect of which clause (1) above applies), the Default Rate;

(3) if the Early Termination Amount is payable by a Non-defaulting Party (but excluding any period
in respect of which clause (1) above applies), the Non-default Rate; and

(4) in all other cases, the Termination Rate.

“Applicable Deferral Rate” means:-

(a) for the purpose of Section 9(h)(i)(3)(A), the rate certified by the relevant payer to be a rate
offered to the payer by a major bank in a relevant interbank market for overnight deposits in the
applicable currency, such bank to be selected in good faith by the payer for the purpose of
obtaining a representative rate that will reasonably reflect conditions prevailing at the time in
that relevant market;

(b) for purposes of Section 9(h)(i)(3)(B) and clause (a)(iii) of the definition of Applicable
Close-out Rate, the rate certified by the relevant payer to be a rate offered to prime banks by a
major bank in a relevant interbank market for overnight deposits in the applicable currency, such
bank to be selected in good faith by the payer after consultation with the other party, if
practicable, for the purpose of obtaining a representative rate that will reasonably reflect
conditions prevailing at the time in that relevant market; and

(c) for purposes of Section 9(h)(i)(3)(C) and clauses (a)(iv), (b)(i)(3) and (b)(ii)(1) of the
definition of Applicable Close-out Rate, a rate equal to the arithmetic mean of the rate determined
pursuant to clause (a) above and a rate per annum equal to the cost (without proof or, evidence of
any actual cost) to the relevant payee (as certified by it) if it were to fund or of funding the
relevant amount.

“Automatic Early Termination” has the meaning specified in Section 6(a).

“Burdened Party” has the meaning specified in Section 5(b)(iv).

“Change in Tax Law” means the enactment, promulgation, execution or ratification of, or any change
in or amendment to, any law (or in the application or official interpretation of any law) that
occurs after the parties enter into the relevant Transaction.

“Close-out Amount” means, with respect to each Terminated Transaction or each group of Terminated
Transactions and a Determining Party, the amount of the losses or costs of the Determining Party
that are or would be incurred under then prevailing circumstances (expressed as a positive number)
or gains of the Determining Party that are or, would be realised under then prevailing
circumstances (expressed as a negative number) in replacing, or in providing for the Determining
Party the economic equivalent of, (a) the material terms of that Terminated Transaction or group of
Terminated Transactions, including the

 

 

payments and deliveries by the parties under Section 2(a)(i) in respect of that Terminated
Transaction or group of Terminated Transactions that would, but for, the occurrence of the relevant
Early Termination Date, have been required after that date (assuming satisfaction of the conditions
precedent in Section 2(a)(iii)) and (b) the option rights of the parties in respect of that
Terminated Transaction or group of Terminated Transactions.

Any Close-out Amount will be determined by the Determining Party (or its agent), which will act in
good faith and use commercially reasonable procedures in order to produce a commercially reasonable
result. The Determining Party may determine a Close-out Amount for any group of Terminated
Transactions or any individual Terminated Transaction but, in the aggregate, for not less than all
Terminated Transactions, Each Close-out Amount will be determined as of the Early Termination Date
or, if that would not be commercially reasonable, as of the date or dates following the Early
Termination Date as would be commercially reasonable.

Unpaid Amounts in respect of a Terminated Transaction or group of Terminated Transactions and legal
fees and out-of-pocket expenses referred to in Section 11 ate to be excluded in all determinations
of Close-out Amounts.

In determining a Close-out Amount, the Determining Party may consider any relevant information,
including, without limitation, one or more of the following types of
information:-

(i) quotations (either firm or indicative) for replacement transactions supplied by one or more
third parties that may take into account the creditworthiness of the Determining Party at the time
the quotation is provided and the terms of any relevant documentation, including credit support
documentation, between the Determining Party and the third party providing the quotation;

(ii) information consisting of relevant market data in the relevant market supplied by one or more
third parties including, without limitation, relevant rates, prices, yields, yield curves,
volatilities, spreads, correlations or other relevant market data in the relevant market; or

(iii) information of the types described in clause (i) or (ii) above from internal sources
(including any of the Determining Party’s Affiliates) if that information is of the same type used
by the Determining Party in the regular course of its business for the valuation of similar
transactions.

The Determining Party will consider, taking into account the standards and procedures described in
this definition, quotations pursuant to clause (i) above or, relevant market data pursuant to
clause (ii) above unless the Determining Party reasonably believes in good faith that such
quotations or relevant market data are not readily available or would produce a result that would
not satisfy those standards. When considering information described in clause (i), (ii) or (iii)
above, the Determining Party may include costs of funding, to the extent costs of funding are not
and would not be a component of the other information being utilised. Third parties supplying
quotations pursuant to clause (i) above or market data pursuant to clause (ii) above may include,
without limitation, dealers in the relevant markets, end-users of the relevant product, information
vendors, brokers and other sources of market information.

Without
duplication of amounts calculated based on information described in clause (i), (ii) or
(iii) above, or other relevant information, and when it is commercially reasonable to do so, the
Determining Party may in addition consider in calculating a Close-out Amount any loss or cost
incurred in connection with its terminating, liquidating or re-establishing any hedge related to a
Terminated Transaction or group of Terminated Transactions (or any gain resulting from any of
them).

 

 

Commercially reasonable procedures used in determining a Close-out Amount may include the
following:-

	(a)	 	application to relevant market data from third parties pursuant to clause (ii) above or
information from internal sources pursuant to clause (iii) above of pricing or other valuation
models that are, at the time of the determination of the Close-out Amount, used by the Determining
Party in the regular course of its business in pricing or valuing transactions between the
Determining Party and unrelated third parties that are similar to the Terminated Transaction or
group of Terminated Transactions; and
	 
	(b)	 	application of different valuation methods to Terminated Transactions or groups of Terminated
Transactions depending on the type, complexity, size or number of the Terminated Transactions or
group of Terminated Transactions.

“Confirmation” has the meaning specified in the preamble.

“consent” includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

“Contractual Currency” has the meaning specified in Section 8(a).

“Convention Court” means any court which is bound to apply to the Proceedings either Article 17 of
the 1968 Brussels Convention on Jurisdiction and the Enforcement of Judgments in Civil and
Commercial Matters or Article 17 of the 1988 Lugano Convention on Jurisdiction and the Enforcement
of Judgments in Civil and Commercial Matters.

“Credit Event Upon Merger” has the meaning specified in Section 5(b).

“Credit Support Document” means any agreement or instrument that is specified as such in this
Agreement.

“Credit Support Provider” has the meaning specified in the Schedule.

“Cross-Default” means the event specified in Section 5(a)(vi).

“Default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual
cost) to the relevant payee (as certified by it) if it were to fund or of funding the relevant
amount plus 1% per annum

“Defaulting Party” has the meaning specified in Section 6(a).

“Designated Event” has the meaning specified in Section 5(b)(v).

“Determining Party” means the party determining a Close-out Amount.

“Early Termination Amount” has the meaning specified in Section 6(e).

“Early Termination Date” means the date determined in accordance with Section 6(a) or 6(b)(iv).

“electronic messages” does not include e-mails but does include documents expressed in markup
languages, and “electronic messaging system” will be construed accordingly.

 

 

“English law” means the law of England and Wales, and “English” will be construed accordingly.

“Event of Default” has the meaning specified in Section 5(a) and, if applicable, in the Schedule.

“Force Majeure Event” has the meaning specified in Section 5(b).

“General Business Day” means a day on which commercial banks are open for general business
(including dealings in foreign exchange and foreign currency deposits).

“Illegality” has the meaning specified in Section 5(b).

“Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect of a
payment under this Agreement but for a present or former connection between the jurisdiction of the
government or taxation authority imposing such Tax and the recipient of such payment or a person
related to such recipient (including, without limitation, a connection arising from such recipient
or related person being or having been a citizen or resident of such jurisdiction, or being or
having been organised, present or engaged in a trade or business in such jurisdiction, or having or
having had a permanent establishment or fixed place of business in such jurisdiction, but excluding
a connection arising solely from such recipient or related person having executed, delivered,
performed its obligations or received a payment under, or enforced, this Agreement or a Credit
Support Document).

“law” includes any treaty, law, rule or regulation (as modified, in the case of tax matters, by the
practice of any relevant governmental revenue authority), and “unlawful” will be construed
accordingly.

“Local Business Day” means (a) in relation to any obligation under Section 2(a)(i), a General
Business Day in the place or places specified in the relevant Confirmation and a day on which a
relevant settlement system is open or operating as specified in the relevant Confirmation or, if a
place or a settlement system is not so specified, as otherwise agreed by the parties in writing or
determined pursuant to provisions contained, or incorporated by reference, in this Agreement, (b)
for the purpose of determining when a Waiting Period expires, a General Business Day in the place
where the event or, circumstance that constitutes or gives rise to the Illegality or Force Majeure
Event, as the case may be, occurs, (c) in relation to any other payment, a General Business Day in
the place where the relevant account is located and, if different, in the principal financial
centre, if any, of the currency of such payment and, if that currency does not have a single
recognised principal financial centre, a day on which the settlement system necessary to accomplish
such payment is open, (d) in relation to any notice or other communication, including notice
contemplated under Section 5(a)(i), a General Business Day (or a day that would have been a General
Business Day but for the occurrence of an event or circumstance which would, if it occurred with
respect to payment, delivery or compliance related to a Transaction, constitute or give rise to an
Illegality or a Force Majeure Event) in the place specified in the address for notice provided by
the recipient and, in the case of a notice contemplated by Section 2(b), in the place where the
relevant new account is to be located and (e) in relation to Section 5(a)(v)(2), a General Business
Day in the relevant locations for performance with respect to such Specified Transaction.

“Local Delivery Day” means, for purposes of Sections 5(a)(i) and 5(d), a day on which settlement
systems necessary to accomplish the relevant delivery are generally open for business so that the
delivery is capable of being accomplished in accordance with customary market practice, in the
place specified in the relevant Confirmation or, if not so specified, in a location as determined
in accordance with customary market practice for the relevant delivery.

“Master Agreement” has the meaning specified in the preamble.

 

 

“Merger Without Assumption” means the event specified in Section 5(a)(viii).

“Multiple Transaction Payment Netting” has the meaning specified in Section 2(c) “Non-affected
Party” means, so long as there is only one Affected Party, the other party.

“Non-default Rate” means the rate certified by the Non-defaulting Party to be a rate offered to the
Non-defaulting Party by a major bank in a relevant interbank market for overnight deposits in the
applicable currency, such bank to be selected in good faith by the Non-defaulting Party for the
purpose of obtaining a representative rate that will reasonably reflect conditions prevailing at
the time in that relevant market.

“Non-defaulting Party” has the meaning specified in Section 6(a).

“Office” means a branch or office of a party, which may be such party’s head or home office.

“Other Amounts” has the meaning specified in Section 6(f).

“Payee” has the meaning specified in Section 6(f).

“Payer” has the meaning specified in Section 6(f).

“Potential Event of Default” means any event which, with the giving of notice or the lapse of time
or both, would constitute an Event of Default.

“Proceedings” has the meaning specified in Section 13(b).

“Process Agent” has the meaning specified in the Schedule.

“rate of exchange” includes, without limitation, any premiums and costs of exchange payable in
connection with the purchase of or conversion into the Contractual Currency.

“Relevant Jurisdiction” means, with respect to a party, the jurisdictions (a) in which the party is
incorporated, organised, managed and controlled or considered to have its seat, (b) where an Office
through which the party is acting for purposes of this Agreement is located, (c) in which the party
executes this Agreement and (d) in relation to any payment, from or through which such payment is
made.

“Schedule” has the meaning specified in the preamble.

“Scheduled Settlement Date” means a date on which a payment or delivery is to be made under Section
2(a)(i) with respect to a Transaction.

“Specified Entity” has the meaning specified in the Schedule.

“Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of borrowed money.

“Specified Transaction” means, subject to the Schedule, (a) any transaction (including an agreement
with respect to any such transaction) now existing or hereafter entered into between one party to
this Agreement (or any Credit Support Provider of such party or any applicable Specified Entity of
such party) and the other party to this Agreement (or any Credit Support Provider of such other
party or any applicable Specified Entity of such other party) which is not a Transaction under this
Agreement but (i) which is a rate swap transaction, swap option, basis swap, forward rate
transaction, commodity swap,

 

 

commodity option, equity or equity index swap, equity or equity index option, bond option, interest
rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction,
currency swap transaction, cross-currency rate swap transaction, currency option, credit protection
transaction, credit swap, credit default swap, credit default option, total return swap, credit
spread transaction, repurchase transaction, reverse repurchase transaction, buy/sell-back
transaction, securities lending transaction, weather index transaction or forward purchase or sale
of a security, commodity or other financial instrument or interest (including any option with
respect to any of these transactions) or (ii) which is a type of transaction that is similar to any
transaction referred to in clause (i) above that is currently, or in the future becomes,
recurrently entered into in the financial markets (including terms and conditions incorporated by
reference in such agreement) and which is a forward, swap, future, option or other derivative on
one or more rates, currencies, commodities, equity securities or other equity instruments, debt
securities or other debt instruments, economic indices or measures of economic risk or value, or
other benchmarks against which payments or deliveries are to be made, (b) any combination of these
transactions and (c) any other transaction identified as a Specified Transaction in this Agreement
or the relevant confirmation.

“Stamp Tax” means any stamp, registration, documentation or similar tax.

“Stamp Tax Jurisdiction” has the meaning specified in Section 4(c).

“Tax” means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature
(including interest, penalties and additions thereto) that is imposed by any government or other
taxing authority in respect of any payment under this Agreement other than a stamp, registration,
documentation or similar tax.

“Tax Event” has the meaning specified in Section 5(b).

“Tax Event Upon Merger ” has the meaning specified in Section 5(b).

“Terminated Transactions” means, with respect to any Early Termination Date, (a) if resulting from
an Illegality or a Force Majeure Event, all Affected Transactions specified in the notice given
pursuant to Section 6(b)(iv), (b) if resulting from any other Termination Event, all Affected
Transactions and (c) if resulting from an Event of Default, all Transactions in effect either
immediately before the effectiveness of the notice designating that Early Termination Date or, if
Automatic Early Termination applies, immediately before that Early Termination Date.

“Termination Currency” means (a) if a Termination Currency is specified in the Schedule and that
currency is freely available, that currency, and (b) otherwise, euro if this Agreement is expressed
to be governed by English law or United States Dollars if this Agreement is expressed to be
governed by the laws of the State of New York.

“Termination Currency Equivalent” means, in respect of any amount denominated in the Termination
Currency, such Termination Currency amount and, in respect of any amount denominated in a currency
other than the Termination Currency (the “Other Currency”), the amount in the Termination Currency
determined by the party making the relevant determination as being required to purchase such amount
of such Other Currency as at the relevant Early Termination Date, or; if the relevant Close-out
Amount is determined as of a later date, that later date, with the Termination Currency at the rate
equal to the spot exchange rate of the foreign exchange agent (selected as provided below) for the
purchase of such Other Currency with the Termination Currency at or about 11:00 a.m. (in the city
in which such foreign exchange agent is located) on such date as would be customary for the
determination of such a rate for the purchase of such Other Currency for value on the relevant
Early Termination Date or that later date. The

 

 

foreign exchange agent will, if only one party is obliged to make a determination under Section
6(e), be selected in good faith by that party and otherwise will be agreed by the parties.

“Termination Event” means an Illegality, a Force Majeure Event, a Tax Event, a Tax Event Upon
Merger or, if specified to be applicable, a Credit Event Upon Merger or an Additional Termination
Event.

“Termination Rate” means a rate per annum equal to the arithmetic mean of the cost (without proof
or evidence of any actual cost) to each party (as certified by such party) if it were to fund or of
funding such amounts.

“Threshold Amount” means the amount, if any, specified as such in the Schedule “Transaction” has
the meaning specified in the preamble.

“Unpaid Amounts” owing to any party means, with respect to an Early Termination Date, the aggregate
of (a) in respect of all Terminated Transactions, the amounts that became payable (or that would
have become payable but for Section 2(a)(iii) or due but for Section 5(d)) to such party under
Section 2(a)(i) or 2(d)(i)(4) on or prior to such Early Termination Date and which remain unpaid as
at such Early Termination Date, (b) in respect of each Terminated Transaction, for each obligation
under Section 2(a)(i) which was (or would have been but for Section 2(a)(iii) or 5(d)) required to
be settled by delivery to such party on or prior to such Early Termination Date and which has not
been so settled as at such Early Termination Date, an amount equal to the fair market value of that
which was (OT would have been) required to be delivered and (c) if the Early Termination Date
results from an Event of Default, a Credit Event Upon Merger or an Additional Termination Event in
respect of which all outstanding Transactions are Affected Transactions, any Early Termination
Amount due prior to such Early Termination Date and which remains unpaid as of such Early
Termination Date, in each case together with any amount of interest accrued or other compensation
in respect of that obligation or deferred obligation, as the case may be, pursuant to Section
9(h)(ii)(l) or (2), as appropriate. The fair market value of any obligation referred to in clause
(b) above will be determined as of the originally scheduled date for delivery, in good faith and
using commercially reasonable procedures, by the party obliged to make the determination under
Section b(e) or, if each party is so obliged, it will be the average of the Termination Currency
Equivalents of the fair market values so determined by both parties.

“Waiting Period” means:-

(a) in respect of an event or circumstance under Section 5(b)(i), other than in the case of Section
5(b)(i)(2) where the relevant payment, delivery or compliance is actually required on the relevant
day (in which case no Waiting Period will apply), a period of three Local Business Days (or days
that would have been Local Business Days but for the occurrence of that event or circumstance)
following the occurrence of that event or circumstance; and

(b) in respect of an event or circumstance under Section 5(b)(ii), other than in the case of
Section 5(b)(ii)(2) where the relevant payment, delivery or compliance is actually required on the
relevant day (in which case no Waiting Period will apply), a period of eight Local Business Days
(or days that would have been Local Business Days but for the occurrence of that event or
circumstance) following the occurrence of that event or circumstance.

 

 

IN WITNESS WHEREOF the parties have executed this document on the respective dates specified below
with effect from the date specified on the first page of this document.

	 	 	 	 	 	 	 

	 	 	 
	 	 	 	 	Williams Production RMT Company
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	Name:
	 	 	 	Name:
	 

	 	Title:
	 	 	 	Title:
	 

	 	Date:
	 	 	 	Date:
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Date:	 	 	 	 

 

 

ISDA

International Swaps and Derivatives Association, Inc.

SCHEDULE

to the

2002 Master Agreement

dated as of February 23, 2006

between

____________________________ (“Party_A”)

and

Williams Production RMT Company (“Party_B”)

Part I

TERMINATION PROVISIONS

In this Agreement:

(a) “Specified Entity” means in relation to Party A for the purpose of:

Section 5(a)(v): Not Applicable

Section 5(a)(vi): Not Applicable

Section 5(a)(vii): Not Applicable

Section 5(b)(iv): Not Applicable

in relation to Party B for the purpose of:

Section 5(a)(v): Not Applicable

Section 5(a)(vi): Not Applicable

Section 5(a)(vii): any Material Subsidiary (as defined in the Credit
Agreement) of Party B

Section 5(b)(iv): Not Applicable

(b) The “Cross Default” provisions of Section 5(a)(vi) of this Agreement will not
apply to either Party A or Party B.

(c) The “Credit Event Upon Merger” provisions of Section 5(b)(v) of this
Agreement will not apply to either Party A or Party B.

(d) The “Automatic Early Termination provision of Section 6(a) will not apply to
Party A or Party B; provided, however, where the Event of Default specified in Section
5(a)(vii)( 1), (3), (4), (5), (6) or to the extent analogous thereto, (8), is governed
by a system of law which does not permit termination to take place after the
occurrence of the relevant Event of Default, then the Automatic Early Termination
provision of Section 6(a) will apply to Party A and Party B.

(e) “Termination Currency” means United States Dollars.

 

 

(f) “Additional Termination Event” will not apply.

Part 2.

TAX REPRESENTATIONS

(a) Party A and Party B each make the following representations:

It is not required by any applicable law, as modified by the practice of any relevant governmental
revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on
account of any Tax from any payment (other than interest under Section 9(h) of this Agreement) to
be made by it to the other party under this Agreement. In making this representation, it may rely
on (i) the accuracy of any representations made by the other
party pursuant to Section 3(f) of this
Agreement, (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this
Agreement and the accuracy and effectiveness of any document provided by the other party pursuant
to Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction of the agreement of
the other party contained in Section 4(d) of this Agreement, except that it will not be a breach of
this representation where reliance is placed on clause (ii) above and the other party does not
deliver a form or document under Section 4(a)(iii) of this Agreement by reason of material
prejudice to its legal or commercial position.

(b) For
the purpose of Section 3(f) of this Agreement, Party A makes the following representations:

It is a __________ organized under the laws of _______, its U.S. federal taxpayer identification
number is
____________, and ____________________.

(c) For the purpose of Section 3(f) of this Agreement, Party B makes the following representations.

It is a corporation organized under the laws of the State of Delaware, its U.S. federal taxpayer
identification number is 73-1613076, the payments received by it or to be received by it are for
its own account, and it will not act through an Office outside the United States of America with
respect to any Transaction.

[To be modified for each Lender. Some Lenders may act through an Office outside of the United
States]

Part 3

AGREEMENT TO DELIVER DOCUMENTS

For the purpose of Section 4(a) of this Agreement, each party agrees to deliver the following
documents, as applicable:

	 	(a)	 	Tax forms, documents or certificates to be delivered are:
	 
	 	 	 	Each of Party B and, if Party A is organized under the laws of a jurisdiction
outside the United States, Party A agrees to complete, execute and deliver to the
other party, (i) United States Internal Revenue Service Form (a) W-9 in the case of
Party B and (b) [W-8ECI or W-8BEN] in the case of Party A, or any successor of such
form upon execution of this Agreement and thereafter promptly upon reasonable
demand and promptly upon learning that any such forms previously provided to the
other party have become obsolete or incorrect, and (ii) any other document required
or reasonably requested to allow the other party to make payments under this
Agreement without any deduction or withholding for or on the amount of any Tax or
with such deduction or withholding at a reduced rate promptly upon reasonable
demand and promptly upon learning that any such forms previously provided to the
other party have become obsolete or incorrect.
	 
	 	(b)	 	Other documents to be delivered are: With respect to Party A — none. With
respect to Party B — each document and certificate required by the Credit Agreement
to be delivered by Party B or required by any Credit Support Document with respect to
Party B.

- 2 -

 

Part 4

MISCELLANEOUS

	 	(a)	 	Addresses for Notices. For the purpose of Section 12(a) of this Agreement:

	 	 	Address for notices or communications to Party A:

	 	 	 	Attention:
Facsimile No.:
	 
	 	 	 	For Transaction Confirmations:
 Attention:
 Facsimile No.:
 Telephone No.:

	 	 	A copy of any notice sent to Party A pursuant to Section 5 or 6 of this
Agreement must also be sent to
	 
	 	 	Address for notices or communications to Party B:

	 	 	 	Williams Production RMT Company

One Williams Center, Suite 5000

Tulsa, Oklahoma 74172

Attention: Assistant Treasurer

Facsimile No.: (918) 573-2065

Telephone No.: (918) 573-2148

	 	 	A copy of any notice sent to Party B pursuant to Section 5 or 6 of this
Agreement must also be sent to

	 	 	 	Williams Production RMT Company

One Williams Center, Suite 5000

Tulsa, Oklahoma 74172

Attention: General Counsel

Facsimile No.: (918) 573-4503

Telephone No.: (918) 573-2613

	 	(b)	 	Process Agent. For the purpose of Section 13(c) of this Agreement:
	 
	 	 	 	Party A appoints as its Process Agent: Not Applicable
	 	 	 	Party B appoints as its Process Agent: Not Applicable
	 
	 	(c)	 	Offices. The provisions of Section 10(a) of this Agreement will apply to this
Agreement.
	 
	 	(d)	 	Multibranch Party. Party A is a Multibranch Party and may enter into a
Transaction through any of the following Offices: _________________________. Party B
is not a Multibranch Party.

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	 	(e)	 	Calculation Agent. The Calculation Agent is Party A unless otherwise
specified in a Confirmation in relation to the relevant Transaction.
	 
	 	(f)	 	Credit Support Document(s):

	 	(i)	 	With respect to Party A — the ISDA Credit Support Annex attached hereto.
	 
	 	(ii)	 	With respect to Party B — the Credit Agreement and the
Security Documents (as defined in the Credit Agreement).

	 	(g)	 	Credit Support Provider(s):
	 
	 	 	 	Credit Support Provider means with respect to Party A: none; and with respect to
Party B: the Guarantor (as defined in the Credit Agreement).

(h) Governing Law. This Agreement as well as any matter arising out of, relating
to or incidental to this Agreement, will be governed by and construed in accordance
with the laws of the State of New York (without reference to choice of law doctrine
other than § 5-1401 of the New York General Obligations Laws).

(i) Netting of Payments. For Scheduled Settlement Dates, with regard to payments
due on that date, Multiple Transaction Payment Netting will apply to the following
groups of Transactions, each of which shall be treated separately for purposes of
payment netting: (x) Gas Transactions (other than options on physical Gas); (y)
options on physical gas; and (z) to the extent operationally feasible,
financially-settled Transactions in Commodities. In addition, a party wishing to net
payments across any of such groups of Transactions and/or payments with respect to
other types of Transactions on a particular Scheduled Settlement Date may cause such
to occur by notifying the other party in writing, not less than one Local Business Day
in advance of the applicable Scheduled Settlement Date, that with regard to payments
due on that date, Multiple Transaction Payment Netting will apply to such groups of
Transactions and/or other transactions as are specified in the notice. Except to the
extent that such advance written notice shall have been given, Multiple Transaction
Payment Netting will not apply for purposes of Section 2(c) of this Agreement across
any of such groups of Transactions or with respect to any other types of Transactions.

	 	(j)	 	“Affiliate” will have the meaning specified in Section 14 of this Agreement.
	 
	 	(k)	 	Absence of Litigation. For the purpose of Section 3(c) of this Agreement:

          “Specified Entity” means in relation to Party A, none.

          “Specified Entity” means in relation to Party B, each Subsidiary (as defined in the Credit
Agreement) of Party B.

	 	(l)	 	No Agency. The provisions of Section 3(g) of this Agreement will apply to
this Agreement.
	 
	 	(m)	 	Additional Representation will apply. For the purpose of Section 3 of this
Agreement, the following will constitute Additional Representations:

	 	(1)	 	Relationship Between Parties. Each party will be deemed to represent to the
other party on the Effective Date and on each date on which it enters into a
Transaction that (absent a written agreement between the parties that expressly
imposes affirmative obligations to the contrary for that Transaction):-

	 	(i)	 	Non-Reliance. It is acting for its own account, and it has made its own
independent decisions to enter into that Transaction and as to whether that
Transaction is appropriate or proper for it based upon its own judgment and upon
advice from such advisers as it has deemed necessary. It is not relying on any
communication (written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction, it being understood that information
and explanations related to the terms and conditions of a Transaction will not be
considered investment advice or a recommendation to enter into that Transaction. No
communication (written or oral) received from the other party will be deemed to be an
assurance or guarantee as to the expected results of that Transaction.

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	 	(ii)	 	Assessment and Understanding. It is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice), and
understands and accepts, the terms, conditions and risks of that
Transaction. It is
also capable of assuming, and assumes, the risks of that Transaction.
	 
	 	(iii)	 	Status of Parties. The other party is not acting as a fiduciary for or an
adviser to it in respect of that Transaction.
	 
	 	(iv)	 	No Employee Benefit Assets. The assets that are used, directly or indirectly,
in connection with the execution, delivery and performance of this Agreement and the
Transactions entered into pursuant hereto are legally and beneficially owned by such
party and are not held by it, directly or indirectly, for the benefit of or under any
form of any employee benefit or other plan, trust plan, pension plan, individual
retirement accounts or other type of similar plans.
	 
	 	(v)	 	Risk Management. Party B alone represents that this Agreement has been, and
each Transaction hereunder has been or will be, as the case may be, entered into for
the purpose of managing its borrowings or investments, hedging its underlying assets
or liabilities or in connection with its line of business (including financial
intermediation services) and not for the purpose of speculation.

(2) Credit Agreement and Security Documents. Party B will be deemed to represent to Party A on each
date on which Party B enters into a Transaction that each of the representations and warranties
contained in the Credit Agreement and each of the representations and warranties contained in any
Security Document are correct in all material respects on and as of such date, before and after
giving effect to such Transaction, as though made on and as of’ such date (unless such
representation and warranty speaks solely as of a particular date or a particular period, in which
case, as of such date or for such period). Party A will be deemed to represent to Party B on each
date on which they enter into a Transaction that each of the representations and warranties
contained in any security agreement or other security instrument executed
by Party A pursuant to this Agreement are correct in all material respects on and as of such date,
before and after giving effect to such Transaction, as though made on and as of such date (unless
such representation and warranty speaks solely as of a particular date or a particular period, in
which case, as of such date or for such period).

(n)
Recording of Conversations. Each party (i) consents to the recording of telephone conversations
between the trading, marketing and other relevant personnel of the parties in connection with this
Agreement or any potential Transaction, and (ii) agrees, to the extent permitted by applicable law,
that recordings may be submitted in evidence in any Proceedings. To the extent that one party
records telephone conversations (the “Recording Party”) and the other party does not (the
“Non-Recording Party”), the Recording Party shall, in the event of any dispute, make a complete and
unedited copy of such party’s tape of the entire day’s conversations with the Non-Recording Party’s
personnel available to the Non- Recording Party. The Recording Party’s tapes may be used by either
party in any forum in which a dispute is sought to be resolved and the Recording Party will retain
tapes for a consistent period of time in accordance with the Recording Party’s policy unless one
party notifies the other that a particular Transaction is under review and warrants further
retention.

(o)
Section 5(a)(viii). Section 5(a)(viii) of this Agreement is hereby replaced in its entirety with
the following:

(viii) Credit Agreement Default. The occurrence of any Credit Agreement Default Event (any
such occurrence shall be deemed to be an Event of Default hereunder with respect to Party B
and not with respect to Party A).

(p) Section 6(e)(v). Section 6(e)(v) of this Agreement is hereby amended by adding the words “or in
the Credit Agreement” immediately after the word “Agreement” in such Section.

(q) Section 7. Section 7 of this Agreement is hereby amended (i) by adding the words “and the
Administrative Agent” immediately after the words “consent of the other party” in such Section, and
(ii) inserting immediately before the semicolon set forth in Section 7(a) of this Agreement the
following: “; provided, with respect to Party B, that such consolidation, amalgamation, merger or
transfer is not in relation to a Change of Control Event, as defined in the Credit Agreement”.

- 5 -

 

(r) Section 8(a). Section 8(a) of this Agreement is hereby amended to read in its entirety as
follows:

(a) Payment in the Contractual Currency. Each payment under this Agreement will be made
only in United States Dollars (the “Contractual Currency”). Any obligation to make payments
under this Agreement in the Contractual Currency will not be discharged or satisfied by any
tender in any currency other than the Contractual Currency.

(s) Section 9(a). Section 9(a) of this Agreement is hereby amended to read in its entirety as
follows:

     (a) Entire Agreement. This Agreement and the Credit Agreement constitute the entire agreement
and understanding of the parties with respect to their subject matter. Each of the parties
acknowledges that in entering into this Agreement and the Credit Agreement it has not relied on any
oral or written representation, warranty or other assurance (except as provided for or referred to
in this Agreement or the Credit Agreement) and waives all rights and remedies which might otherwise
be available to it in respect thereof, except that nothing in this Agreement or the Credit
Agreement will limit or exclude any liability of a party for fraud.

(t) Section 14. Section 14 of this Agreement is hereby amended by adding the following four
definitions:

     “Bank” has the meaning specified in the preamble of this Agreement.

     “Credit Agreement” means the Credit Agreement dated as of February 23, 2007 among Party B,
Citibank, N.A., Calyon New York Branch and others, as amended or otherwise modified from time to
time.

     “Credit Agreement Default Event” means the occurrence of any “Event of Default” as that term is
defined in the Credit Agreement.

     “Security Document” has the meaning specified in the Credit Agreement.

Part 5

OTHER PROVISIONS

     (a) Additional Representations. Section 3 of this Agreement is hereby amended by adding at the
end thereof the following Subparagraphs (h), (i), (j) and (k):

(h) Eligible Contract Participant and Eligible Commercial Entity. It constitutes an
“eligible contract participant” as such term is defined Section la(12) of the Commodity
Exchange Act, as amended. It is an “eligible commercial entity” within the meaning of
Section l(a)(11) of the Commodity Exchange Act, as amended.

(i) Standardization and Creditworthiness. (x) The economic terms of this Agreement, any
Credit Support Document to which it is a party, and each Transaction have been individually
tailored and negotiated by it; (y) it has received and reviewed financial information
concerning the other party and has had a reasonable opportunity to ask questions of and
receive answers and information from the other party concerning such other party, this
Agreement, such Credit Support Document, and such Transaction, and (z) the creditworthiness
of the other party was a material consideration in its entering into or determining the
terms of this Agreement, such Credit Support Document, and such Transaction.

(j) Line of Business. It has entered into this Agreement (including each Transaction
hereunder) in conjunction with its line of business (including financial intermediation
services) or the financing of its business.

(k) Bankruptcy Code Representation. The parties hereto intend that this Agreement shall be
a “master agreement” for purposes of 11 U.S.C. 101(53B) and 12 U.S.C. 1821 (e)(8)(d)(vii)
or any successor provisions.

(b) ISDA Definitions. Unless otherwise specified in a Confirmation, this Agreement, each
Confirmation and each Transaction incorporates, and is subject to and governed by the 2000
ISDA Definitions (the

- 6 -

 

“Swap
Definitions”) as published by the International Swaps and Derivatives Association, Inc. In
the event of any inconsistency between the provisions of this Agreement and the Definitions, this
Agreement will prevail. The
parties agree that the definitions and provisions contained in Annexes 1 to 16 and Section 6 of the
2002 Master Agreement Protocol published by the International Swaps and Derivatives Association,
Inc. on July 15, 2003 are incorporated into and apply to this Agreement.

     (c) Accounts. If a Confirmation does not state the account to which payments are to be made,
they shall be made in United States Dollars to the following accounts:

Party A

Payment:

For the Account of:

Account No/CHIPS UID:

Fed. ABA No.:

Party B

Payment:

For the Account of:

Account No/CHIPS UID:

Fed. ABA No.:

     (d) Existing Transactions. Any transaction entered into between Party A and Party B prior to
the date of this Agreement shall not be a “Transaction” and shall not be governed by this
Agreement.

     (e) Procedures for Entering into Transactions. The parties hereby amend Section 9(e)(ii) of
this Agreement by adding the following sentences at the end thereof: “On or promptly following the
date on which the parties reach agreement on the terms of a Transaction as contemplated by the
first sentence of this Section 9(e)(ii), Party A will send to Party B a Confirmation. Party B will
promptly thereafter confirm the accuracy of (in the manner required by this Section 9(e)(ii)), or
request the correction of, such Confirmation (in the latter case, indicating how it believes the
terms of such Confirmation should be correctly stated and such other terms which should be added to
or deleted from such Confirmation so that it correctly reflects the agreement with respect to the
Transaction referred to in the Confirmation). If any dispute shall arise as to whether an error
exists in a Confirmation, the parties shall in good faith make reasonable efforts to resolve the
dispute. If Party B fails to accept or dispute the Confirmation in the manner set forth above
within two Local Business Days after it was received by Party B, its failure shall constitute its
acknowledgment that the Confirmation correctly reflects the parties’ agreement on the terms of the
Transaction referred to therein, absent manifest error. The requirement of this Section 9(e)(ii)and
elsewhere in this Agreement that the parties exchange Confirmations shall for all purposes be
deemed satisfied by a Confirmation sent and an acknowledgment deemed given as provided herein”.

     (f) Set-Off. The parties hereby amend Section 6(f) of this Agreement by deleting the phrase
beginning in the sixth line which reads “any other amounts (“Other Amounts”) payable by the Payee
to the Payer” and replacing it with the following: “any other amounts (“Other Amounts”) payable by
the Payee and/or, if the Payee is Party A, its Affiliates (in each case to the extent payable by
the Payee or such Affiliates under any “Qualifying Hedge” (as defined in the Credit Agreement)) to
the Payer and/or, if the Payer is Party A, its Affiliates (in each case to the extent payable to
the Payer or such Affiliates under any “Qualifying Hedge” (as defined in the Credit Agreement))”.

     (g) Severability. Except as otherwise provided in Sections 5(b)(i) or 5(b)(ii) of this
Agreement, any provision of this Agreement (including any Transaction hereunder) which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
invalid to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Agreement or such Transaction or affecting the validity or
enforceability of such provision in any other jurisdiction unless such invalidity shall
substantially impair the benefits of the remaining portions of this Agreement or such Transaction
or changes the reciprocal obligations of the parties. The parties hereto shall endeavor in good
faith negotiations to replace the prohibited or unenforceable provision with a valid provision, the
economic effect of which comes as close as possible to that of the prohibited or unenforceable
provision.

- 7 -

 

     (h) Confidentiality. The contents of this Agreement and all other documents relating to this
Agreement, and any information made available by one party or its Credit Support Provider to the
other party or its Credit Support Provider with respect to this Agreement is confidential and shall
not be disclosed to any third party (nor shall any public announcement disclosing the contents of
this Agreement be made by either party), except for such information (i) as may become generally
available to the public, (ii) as may be required or appropriate in response to any summons,
subpoena, or otherwise in connection with any litigation or to comply with any applicable law,
order, regulation, ruling, or accounting disclosure rule or standard, (iii) as may be obtained from
a non-confidential source that disclosed such information in a manner that did not, to the
knowledge of the party receiving such information, violate its obligations to the other party or
its Credit Support Provider in making such disclosure, (iv) with respect to Party A, at the request
of a bank examiner in connection with an examination of Party A or its affiliates, (v) as may be
furnished to the disclosing party’s Affiliates, and to each of such person’s auditors, attorneys,
advisors or lenders which are required to keep the information that is disclosed in confidence, or
(vi) referred to in Section 8.10 of the Credit Agreement that may be disclosed pursuant to such
Section 8.10. With respect to information provided with respect to a Transaction, this obligation
shall survive for a period of one year following the expiration or termination of such Transaction.
With respect to information provided with respect to this Agreement, this obligation shall survive
for a period of one year following the expiration or termination of this Agreement.

     (i) Limitation of Rate. Notwithstanding any provision to the contrary contained in this
Agreement, in no event shall the Default Rate, Non-default Rate, or Termination Rate exceed the
Highest Lawful Rate. For purposes hereof, “Highest Lawful Rate” shall mean, with respect to each
party, the maximum non-usurious interest rate, if any, that at any time or from time to time may be
contracted for, taken, reserved, charged, or received on the subject indebtedness under the law
applicable to such party which is presently in effect or, to the extent allowed by law, may
hereafter be in effect and which allows a higher maximum non-usurious interest rate than applicable
law presently allows.

     (j) Imaged Documents. Any document generated by the Parties with respect to this Agreement,
including this Agreement, may be imaged and stored electronically (“Imaged Documents”). Imaged
Documents may be introduced as evidence in any proceeding as if such were original business records
and neither Party shall contest the admissibility of Imaged Documents as evidence in any
proceeding.

     (k) LIMITATION OF LIABILITY. NO PARTY SHALL BE REQUIRED TO PAY OR BE LIABLE FOR SPECIAL,
PUNITIVE, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL, OR INDIRECT DAMAGES (OTHER THAN ANY SUCH DAMAGES
OWING TO A THIRD PARTY PURSUANT TO INDEMNITY OBLIGATIONS RELATED TO A THIRD PARTY CLAIM), WHETHER
OR NOT ARISING FROM ITS NEGLIGENCE, TO ANY OTHER PARTY; PROVIDED, HOWEVER, THAT NOTHING IN THIS
PROVISION SHALL AFFECT SECTION 6(e) OF THIS AGREEMENT. IF AND TO THE EXTENT ANY PAYMENT REQUIRED TO
BE MADE PURSUANT TO THIS AGREEMENT IS DEEMED TO CONSTITUTE LIQUIDATED DAMAGES, THE PARTIES
ACKNOWLEDGED AND AGREE THAT SUCH DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE AND THAT SUCH
PAYMENT IS INTENDED TO BE A REASONABLE APPROXIMATION OF THE AMOUNT OF SUCH DAMAGES AND NOT A
PENALTY.

     (l) Waiver of Right to Trial by Jury. Each party hereby irrevocably waives, to the fullest
extent permitted by applicable law, any right it may have to a trial by jury in respect of any
suit, action or proceeding relating to this Agreement.

Part 6

ADDITIONAL PROVISIONS FOR

COMMODITY DERIVATIVE TRANSACTIONS

The 2005 ISDA Commodity Definitions as published by the International Swaps and Derivatives
Association, Inc. and otherwise as amended, supplemented or modified from time to time (the
“Commodity Definitions”), are

- 8 -

 

incorporated by reference into this Agreement and the relevant Confirmations with respect to
“Transactions”, as defined by the Commodity Definitions, except as otherwise specifically provided
in the relevant Confirmation.

Part 7

Physical Gas Transactions

     (a) ISDA North American Gas Annex. The North American Gas Annex to the ISDA Master Agreement
published by the International Swaps and Derivatives Association, Inc. (attached hereto as
Attachment I-A), as amended, supplemented, replaced or modified from time to time, (the
“Gas Annex”) is incorporated by reference in this Agreement and in the relevant Confirmations with
respect to “Transactions,” as defined by the Commodity Definitions, in physical gas, except as
otherwise specifically provided in the relevant Confirmation. The Commodity Definitions and the
provisions of Part 6 are incorporated by reference in the Gas Annex for all purposes. All terms
used in this Part 7 that are not otherwise defined shall have the meanings given to them in the Gas
Annex.

(b) Amendments to the Gas Annex.

(i) FERC Standard of Review; Certain Covenants and Waivers. Clause (j) of the Gas Annex is amended
by the addition of the following as clauses (iv)(A), (B), (C) and (D):

     (A) Absent the agreement of all parties to the proposed change, the standard of review for
changes to any provision of this Agreement (including all Gas Transactions and/or Confirmations)
specifying the rate(s) or other material economic terms and conditions agreed to by the parties
herein, whether proposed by a party, a non-party or the Federal Energy Regulatory Commission
(“FERC”) acting sua sponte, shall be the “public interest” standard of review set forth in
United Gas Pipe Line Co. v. Mobile Gas Service Corp., 350 U.S. 332 (1956) and Federal
Power Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956) (the “Mobile-Sierra”
doctrine).

     (B) The parties, for-themselves and their successors and assigns, (y) agree that this “public
interest” standard of review shall apply to any proposed changes in any other documents,
instruments or other agreements executed or entered into by the parties in connection with this
Agreement and (z) hereby expressly and irrevocably waive any rights they can or may have to the
application of any other standard of review, including the “just and reasonable” standard, provided
that this standard of review and the other provisions of this (j)(iv) shall only apply to
proceedings before the FERC or appeals thereof.

     (C) In addition, and notwithstanding the foregoing clauses (j)(iv)(A) and (B), to the fullest
extent permitted by applicable law, each party, for itself and its successors and assigns, hereby
expressly and irrevocably waives any rights it can or may have, now or in the future, whether under
Sections 4 and 5 of the Natural Gas Act or otherwise, to seek to obtain from FERC by any means,
directly or indirectly (through complaint, investigation or otherwise), and each hereby covenants
and agrees not at any time to seek to so obtain, an order from FERC changing any provision of this
Agreement (including any applicable Gas Transactions and/or Confirmations) specifying the rate(s)
or other material economic terms and conditions agreed to by the parties, it being the express
intent of the parties that, to the fullest extent permitted by applicable law, the “sanctity of
contract” principles acknowledged by FERC in its Notice of Proposed Policy Statement (issued August
1, 2002) in Docket No. PL02-7-000, Standard of Review for Proposed Changes to Market-Based Rate
Contracts for Wholesale Sales of Electric Energy by Public Utilities (“NPPS”) shall prevail and
neither of them shall unilaterally seek to obtain from FERC any relief changing the rate(s) and/or
other material economic terms and conditions of their agreement(s), as set forth in this Agreement
and in any Gas Transactions or Confirmations, notwithstanding any subsequent changes in applicable
law or market conditions that may occur. In the event it were to be determined that applicable law
precludes the parties from waiving their rights to seek changes from FERC to their market-based gas
sales contracts (including entering into covenants not to do so) then this clause (j)(iv) shall not
apply, provided that, consistent with clause (j)(iv) neither party
shall seek any such changes except under the “public interest” standard of review and
otherwise as set forth in clauses (j)(iv)(A) and (B).

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     (D)
The Parties agree that in the event that any portion of clause (j)(iv) is determined to be
invalid, illegal or unenforceable for any reason, the provisions of clause (j)(iv)(A) shall be
unaffected and unimpaired thereby, and shall remain in full force and effect, to the fullest extent
permitted by applicable law.

(ii)
Cerain Amendments to this Agreement. Clause (j) of the
Gas Annex is amended as follows:

     (A) the clause beginning in the second line of Clause (j)(i) with the words “, if the pre-printed
form” and ending in the third line of such Clause with the words “Master Agreement form,” shall be
deleted; and

     (B) Clause (j)(iii) shall be deleted in its entirety.

(ii) Elective Provisions. Clause (1) of the Gas Annex is amended and restated in its entirety to
read as follows:

“(1) Elective Provisions.

	 	1.	 	(a)(ii) Outstanding Gas Transactions. This Gas Annex shall not apply to any Gas Transaction
between the parties that was executed prior to the date this Gas Annex becomes effective.

	 
	 	2.	 	(a)(iii) Outstanding Gas Credit Support: Not Applicable.
	 
	 	3.	 	(b)(ii) Performance Obligation (remedy for breach of Firm
obligation):

Option A: Cover Standard
	 
	 	4.	 	(e) Taxes:
Option A: Buyer Pays At and After Delivery Point
	 
	 	5.	 	(f)(ii) Payment Date:

Option A: the later of the 25th Day of the Month following Month of delivery or 10 Days after
receipt of the invoice by Buyer (provided that if the Payment Date is not a Local Business Day,
payment is due on the next Local Business Day following that date).”

6. (k)(xxii) — Alternative to Spot Price Index. The parties have selected the following
alternative index as the Spot Price Index:                     . If no index is specified, the Spot Price
Index specified in clause (l)(xxi) applies.

(iii) Notice Information for Gas Transactions:

	 	 	 

	PARTY A 

All Notices

	 	PARTY B

All Notices
	 
	As Set forth in Part 4 of this Schedule unless otherwise set forth below:

	 	As Set forth in Part 4 of this Schedule unless otherwise set forth below:
	Attn:

	 	Attn:
	Phone:

	 	Phone:
	Facsimile:

	 	Facsimile:

(iv) Other
Provisions/Modifications to this Gas Annex. The following new paragraph is added as
clause (n)(i):

“(i) Each party agrees that notwithstanding any provisions of law relating to adequate assurance of
future performance, including without limitation Article 2-609
of the UCC, the parties shall only
be entitled to request adequate assurance as specifically provided in
this Agreement or the Credit Agreement. For purposes of the foregoing, UCC means the Uniform

- 10 -

 

Commercial Code as adopted by the jurisdiction governing the parties and the Transactions. Section
references are to the Model Uniform Commercial Code and are intended to correspond to the same
substantive provisions contained in the specific codes adopted in the controlling jurisdictions, to
the extent that section references differ.”

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EXECUTION PAGE

TO

SCHEDULE

to the

2002 ISDA MASTER AGREEMENT

dated as of February 23, 2006

between

     
                
                                                            (“Party A”)

and

Williams Production RMT Company (“Party B”)

     IN WITNESS WHEREOF, the parties hereto have executed this document as of the date specified on the
first page hereof.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	WILLIAMS PRODUCTION RMT COMPANY
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	 	 	Title:	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	 	 	 	 

	 	 

 

 

ISDA

CREDIT SUPPORT ANNEX

to the Schedule

to the

ISDA Master Agreement

dated as of February 23, 2007,

between

	 	 	 	 	 

	[                                                             ],

	 	and
	 	Williams Production RMT Company,
	a [                     ] organized and existing

	 	 	 	a corporation organized and existing
	under the laws of [                     ]

	 	 	 	under the laws of Delaware
	                    (“Party A”)
	 	 	 	(“Party B”)

Paragraph 13. Elections and Variables

(a) Security Interest for “Obligations”. The term “Obligations” shall have the meaning set forth in
Paragraph 12.

(b) Credit Support Obligations.

     (i) Delivery Amount, Return Amount and Credit Support Amount; Addition to Paragraph 3 of this
Annex.

(A) “Delivery Amount” has the meaning set forth in Paragraph 3(a).

(B) “Return Amount” has the meaning set forth in Paragraph 3(b).

(C) “Credit Support Amount” means for any Valuation Date (i) the Secured Party’s Exposure for that
Valuation Date plus (ii) the aggregate of all Independent Amounts applicable to the Pledgor, if
any, minus (iii) the Pledgor’s Threshold, if any;
provided, however, that (x) in the case where the
sum of the Independent Amounts applicable to the Pledgor exceeds zero, the Credit Support Amount
will not be less than the sum of all Independent Amounts applicable to the Pledgor and (y) in all
other cases, the Credit Support Amount will be deemed to be zero whenever the calculation of the
Credit Support Amount yields an amount less than zero.

     (ii) Eligible Collateral. The following items will qualify as “Eligible Collateral” for the party
specified:

	 	 	 	 	 	 	 
	 	 	Party A	 	Party B	 	Valuation Percentage
	(A) Cash
	 	[X]	 	[ ]	 	100%
	 
	 	 	 	 	 	 
	(B) Direct United States treasury obligations having a remaining
term to maturity of less than one
year
	 	[X]	 	[ ]	 	100%

11

 

     (iii) Other Eligible Support. The following items will quality as “Other Eligible Support” for
the party specified:

None

     (iv) Thresholds.

(A) “Independent Amount” shall mean $0.00 with respect to Party A.

(B) “Threshold” shall mean, with respect Party A, the amount set forth below opposite the lower of
the Credit Ratings in effect on any Valuation Date for Party A or Party’s A’s Credit Support
Provider.

	 	 	 	 	 
	Threshold	 	S&P Credit Rating	 	Moody’s Credit Rating
	U.S. $75,000,000.00
	 	AA- or higher
	 	Aa3 or higher
	U.S. $50,000,000.00
	 	A+
	 	A1
	U.S. $50,000,000.00
	 	A
	 	A2
	U.S. $50,000,000.00
	 	A-
	 	A3
	Zero
	 	BBB+ and below, or
not rated
	 	Baa1 and below, or not rated

(C) “Minimum Transfer Amount” for purposes of computing a Delivery Amount pursuant to
Paragraph 3(a) and a Return Amount pursuant to Paragraph 3(b), as of any date shall mean, with
respect to Party A, U.S. $1,000,000.

(D) Rounding. The Delivery Amounts will be rounded up and Return Amounts will be rounded down to
the nearest integral multiple of U.S. $10,000.

(c) Valuation and Timing.

     (i) “Valuation Agent” means the Collateral Agent.

     (ii) “Valuation Date” means each Local Business Day.

     (iii) “Valuation Time” means, with respect to the determination of Exposure, Value of Eligible
Credit Support and Posted Credit Support, the close of business on the Local Business Day
immediately before the Valuation Date or date of calculation, as applicable.

     (iv) “Notification
Time” means 10:00 a.m., New York time on a Valuation
Date provided, however,
that, notwithstanding Paragraph 4(b), if a request for Transfer is made by the Notification Time,
then the relevant Transfer shall be made not later than the close of business on such day and, if
such request is received after the Notification Time, not later than the close of business on the
next Local Business Day following such request. Notwithstanding anything herein to the contrary,
with regard to Transfers of Independent Amounts, the relevant Transfer shall be made by the close
of business on the second Local Business Day following the Trade Date of the applicable
Transaction.

(d) Conditions Precedent and Secured Party’s Rights and Remedies. Each Termination Event specified
below with respect to a party will be a “Specified Condition” for that party (the specified party

12

 

being the Affected Party if a Termination Event or Additional Termination Event occurs with respect
to such party):

	 	 	 	 	 
	 	 	Party A	 	Party B
	Illegality
	 	[ ]
	 	[ ]
	Tax Event
	 	[ ]
	 	[ ]
	Tax Event Upon Merger
	 	[ ]
	 	[ ]
	Credit Event Upon Merger
	 	[ ]
	 	[ ]
	Additional Termination Events specified in
the Schedule to this Agreement
	 	[ ]
	 	[ ]

(e) Substitution.

     (i) “Substitution Date” has the meaning specified in Paragraph 4(d)(ii) of this Annex.

     (ii) The following phrase shall be inserted after the word “Support” and before the period at the
end of Paragraph 4(d)(ii): “and in an amount in excess of the Pledgor’s Minimum Transfer Amount”.

(f) Dispute Resolution.

     (i) “Resolution Time” means 1:00 p.m., New York time, on the Local Business Day following the date
on which notice is given that gives rise to a dispute under Paragraph 5.

	 	(ii)	 	Value. For the purpose of Paragraphs 5(i)(C) and 5(ii), the Value of Posted Credit Support will
be calculated as follows: the sum of (i) (x) the arithmetic mean of the mid market quotations on
the relevant date of three nationally recognized principal market makers (which may include an
affiliate of Party A) for such security chosen by the Valuation Agent multiplied by the applicable
Valuation Percentage or (y) if no quotations are available from such principal market makers on the
relevant date, the arithmetic mean of the closing bid prices on the next preceding date multiplied
by the applicable Valuation Percentage plus (ii) the accrued interest on such security (except to
the extent Transferred to a party pursuant to any applicable provision of this Agreement or
included in the applicable price referred to in (i) of this clause) as of such date.
	 
	 	(iii)	 	Alternative. The provisions of Paragraph 5 will apply.

(g) Holding and Using Posted Collateral.

     (i) Eligibility to Hold Posted Collateral; Custodians. Party B will not be entitled to hold Posted
Collateral pursuant to Paragraph 6(b) or to appoint a Custodian for such purposes. Posted
Collateral will be delivered to the Collateral Agent pursuant to Section 2.10 of the Credit
Agreement.

     (ii) Use of Posted Collateral. The provisions of Section 6(c) will not apply.

(h) Distributions and Interest Amount.

     (i) Interest Rate. The “Interest Rate” will be determined in accordance with Section 2.12(b) of the
Credit Agreement.

     (ii) Transfer of Interest Amount. Transfers of the Interest Amount will be made in arrears on the
last Local Business Day of each calendar month.

13

 

     (iii) Alternative to Interest Amount. The provisions of Paragraph 6(d)(ii) will apply, provided,
however, that the Interest Amount will compound daily.

(i) Other Eligible Support and Other Posted Support.

     (i) “Value” with respect to Other Eligible Support and Other Posted Support means: N/A

     (ii) “Transfer” with respect to Other Eligible Support and Other Posted Support means: N/A

(j) Demands and Notices.

All demands, specifications and notices under this Annex will be made pursuant to the Notices
Section of this Agreement, provided, that the address for Party A for such purposes shall be:

and the
address for Party B for such purposes shall be:

(k) Other Provisions.

     (i) Custodians. A party shall be eligible to serve as Custodian if and for so long as it (i) is not
affiliated with Party A or Party B, (ii) is a trust company or commercial bank with trust powers,
organized under the laws of the United States of America or any state thereof and subject to
supervision or examination by federal or state authority, having a combined capital surplus of at
least $10,000,000,000 and (iii) shall have outstanding long term unsecured unsubordinated debt
securities rated at least “A3” by Moody’s and
“A-” by S&P. The Collateral Agent shall not act as Party
B’s Custodian but instead shall hold Posted Collateral in accordance with the provisions of Section
2.10 of the Credit Agreement.

     (ii) Actions Hereunder. Either party may take any actions hereunder, including liquidation rights,
through its Custodian or other agent.

     (iii) Events
of Default. Paragraph 7(i) shall be amended and restated in its entirety as follows:
“(i) that party fails (or fails to cause its Custodian) to make, when due any Transfer of Eligible
Collateral, Posted Collateral or the Interest Amount, as applicable, required to be made by it and
that failure continues for one Local Business Day after notice of that failure is given to that
party;”

     (iv) Amendments to Definitions. Paragraph 12 of this Annex is hereby amended by adding or amending,
as applicable, the following defined terms:

“Local Business Day” is hereby amended by inserting the following in lieu thereof: “Local Business
Day” shall mean a day on which commercial banks in New York City are open for business (including
dealings in foreign exchange and foreign currency deposits).”

14

 

“Collateral Agent” shall mean the Collateral Agent serving from time to time under the Credit
Agreement.

“Credit Agreement” shall mean the Credit Agreement dated as of February 23, 2007 among Party B,
Citibank, N.A., Calyon New York Branch and others, as amended or otherwise modified from time to
time

“Credit Rating” shall mean with respect to a party (or its Credit Support Provider, as the case may
be) or entity, on any date of determination, the respective ratings then assigned to such party’s
(or its Credit Support Provider’s, as the case may be) or entity’s unsecured, senior long-term
Dollar-demoninated debt or deposit obligations (not supported by third party credit enhancement) by
S&P, Moody’s or any other specified rating agency or agencies.

“Moody’s” shall mean Moody’s Investors Service, Inc.

“New York Banking Day” means any day on which commercial banks are open for general business
(including dealings in foreign exchange and foreign currency deposits) in New York City.

“S&P”
shall mean Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc.

     (v) No Posting Obligation by Party B. Notwithstanding anything in this Annex to the
contrary, in no event shall Party B be a Pledgor under this Annex. This Annex is provided to Party
B by Party A solely for the purpose of securing Party A’s obligations to Party B.

     (vi) Role of Collateral Agent. Notwithstanding anything in this Annex to the contrary, Party A and
Party B understand and agree that the Collateral Agent shall hold the Posted Collateral of Party A
in accordance with the provisions of the Credit Agreement. Accordingly, Party B shall not have any
obligation or liability for the handling of such Posted Collateral, delivery of any Return Amount
to Party A, or the payment of any Interest Amount to Party A on account of any Posted Collateral
and no failure with respect to any such item shall constitute an Event of Default with respect to
Party B under this Annex.

     IN WITNESS WHEREOF, the parties hereto have executed this Annex as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	[                    ]	 	 	 	 	 	 	 	Williams Production RMT Company	 	 
	(Party A)	 	 	 	 	 	 	 	(Party B)	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	By:

	 	 	 	 	 	 
	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 	 

	 	 
	 

	 	Title:
	 	 	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 

15

 

ISDA NORTH AMERICAN GAS ANNEX

to the Schedule to the

ISDA Master Agreement

dated as of February 23, 2007

between

and

This Gas Annex supplements, forms part of, and is subject to the above-referenced Agreement and is
part of the Schedule thereto.

	(a)	 	Physical Gas Transactions under this Agreement; Credit
Support Documents

     (i) Physical Gas Transactions under this Agreement. The provisions of this Gas Annex
shall apply solely to transactions between the parties for the purchase or sale of
physical Gas with delivery points in North America on a Firm or Interruptible basis on a
spot or forward basis or as an option to purchase or sell Gas (collectively, “Gas
Transactions”). All Gas Transactions will be deemed to have been entered into in
accordance with the terms of this Agreement and shall be Transactions for all purposes of
this Agreement. A subsequent agreement between the parties to settle a Gas Transaction
without involving a physical delivery of Gas shall not affect such Gas Transaction’s
status as a Gas Transaction under this Gas Annex. In the event of any inconsistency among
or between the other provisions of this Agreement and this Gas Annex, this Gas Annex will
govern with respect to Gas Transactions. In the event of any inconsistency between the
Confirmation for a Gas Transaction and this Gas Annex, the Confirmation will govern with
respect to such Gas Transaction, except as provided in clause (a)(ii) with respect to
Outstanding Gas Transactions.

     (ii) Applicability to Outstanding Gas Transactions. Gas Transactions executed by the parties prior
to the effectiveness of this Gas Annex and selected under clause (l)(l) (“Outstanding Gas
Transactions”) shall be Transactions and shall be subject to the terms and conditions of this
Agreement upon effectiveness of this Gas Annex, unless otherwise agreed in writing by the parties
with respect to one or more specific Outstanding Gas Transactions. All confirmations evidencing
such Outstanding Gas Transactions shall constitute “Confirmations” within the meaning of this
Agreement that supplement, form part of and are subject to this
Agreement. If any confirmation
issued or entered into with respect to one or more Outstanding Gas Transactions pursuant to the
terms of a master agreement or in a form that contains provisions that are not directly related to
the commercial terms of the Transaction and that are inconsistent with or duplicative of the terms
and conditions of this Agreement (such master agreement or the portion of such Confirmation
containing such non-commercial terms being referred to herein as the “Prior Master Agreement”),
then, notwithstanding any provision of this Agreement to the contrary, the terms of the Schedule
and the pre-printed form of this Agreement shall automatically supersede such Prior Master
Agreement effective upon the effectiveness of this Gas Annex.

     (iii) Credit Support Documents. If elected under clause (I) as being applicable:

     (A) Outstanding Gas Credit Support. The parties agree that to the extent any collateral,
margin, security or other similar form of credit support (such credit support, excluding
guarantees, being referred to herein as “Outstanding Gas Credit Support”) is held by a
party in connection with the obligations of the other party under Outstanding Gas
Transactions, such Outstanding Gas Credit Support shall be deemed to have been delivered
in respect of the obligations of the other party under and in connection with this
Agreement.

     The parties further agree that with respect to any Outstanding Gas Credit Support that (x) if the
parties have entered into a Credit Support Document in connection with this Agreement that governs
the provision of collateral, margin, security or other similar form of credit support (such Credit
Support Document, an “Existing ISDA Credit Support Document”) then the Outstanding Gas Credit
Support shall be deemed to constitute credit support provided under such Existing ISDA Credit
Support Document and such Existing ISDA Credit Support Document shall automatically supersede any
agreement between the parties pursuant to which the Outstanding Gas Credit Support was provided
(the “Outstanding Gas Credit Support Document”) effective as of the date agreed by the parties and
(y) if the parties have not entered into an Existing ISDA Credit Support Document, then the
Outstanding Gas Credit Support Document constitutes a Credit Support Document with respect to the party that provided such credit support.

-1-

 

     (B) Amendments/Guaranties. The parties agree that they will enter into such amendments to any
Outstanding Gas Credit Support Document as may be necessary to give effect to the terms of this
clause (a)(iii). To the extent that a
guaranty was delivered in connection with a party’s obligations under Outstanding Gas Transactions
or a Prior Master Agreement, that party represents and warrants that any amendments necessary to
ensure that the guaranty would extend to Transactions subject to this Agreement have been made
prior to the effectiveness of this Gas Annex and agrees (x) that such guaranty constitutes a Credit
Support Document with respect to the obligations of such party and (y) the guarantor under such
guaranty constitutes a Credit Support Provider with respect to the obligations of such party.

	(b)	 	Performance Obligation

(i) Seller agrees to sell and deliver, and Buyer agrees to receive and purchase, the
Contract Quantity for a particular Gas Transaction in accordance with the terms of this
Gas Annex. Sales and purchases will be on a Firm or Interruptible basis, as agreed to by
the parties in a Gas Transaction.

(ii) The remedy for the breach of a Firm obligation by a party shall be determined
pursuant to the option below that the parties select in clause (l)(3):

Option A Cover Standard: The sole and exclusive remedy of the parties in the event of a breach of a
Firm obligation to deliver or receive Gas shall be recovery of the following: (i) in the event of a
breach by Seller on any Day(s), payment by Seller to Buyer in an amount equal to the positive
difference, if any, between the purchase price paid by Buyer utilizing the Cover Standard and the
Contract Price, adjusted for commercially reasonable differences in transportation costs to or from
the Delivery Point(s), multiplied by the difference between the Contract Quantity and the quantity
actually delivered by Seller for such Day(s); or (ii) in the event of a breach by Buyer on any
Day(s), payment by Buyer to Seller in the amount equal to the positive difference, if any, between
the Contract Price and the price received by Seller utilizing the Cover Standard for the resale of
such Gas, adjusted for commercially reasonable differences in transportation costs to or from the
Delivery Point(s), multiplied by the difference between the Contract Quantity and the quantity
actually taken by Buyer for such Day(s); or (iii) in the event that Buyer has used commercially
reasonable efforts to replace the Gas or Seller has used commercially reasonable efforts to sell
the Gas to a third party, and no such replacement or sale is available, then the sole and exclusive
remedy of the performing party shall be any unfavorable difference between the Contract Price and
the Spot Price, adjusted for such transportation to the applicable Delivery Point, multiplied by the
difference between the Contract Quantity and the quantity actually delivered by Seller and received
by Buyer for such Day(s). Imbalance Charges shall not be recovered under this clause (b)(ii), but
Seller and/or Buyer shall be responsible for Imbalance Charges, if any, as provided in clause
(c)(iii) of this Gas Annex. The amount of such unfavorable difference shall be payable five Local
Business Days after presentation of the performing party’s invoice, which shall set forth the basis
upon which such amount was calculated.

Option B Spot Price Standard: The sole and exclusive remedy of the parties in the event of a breach
of a Firm obligation to deliver or receive Gas shall be recovery of the following: (i) in the event
of a breach by Seller on any Day(s), payment by Seller to Buyer in an amount equal to the
difference between the Contract Quantity and the actual quantity delivered by Seller and received
by Buyer for such Day(s), multiplied by the positive difference, if any, obtained by subtracting
the Contract Price from the Spot Price; or (ii) in the event of
a breach by Buyer on any Day(s),
payment by Buyer to Seller in an amount equal to the difference between the Contract Quantity and
the actual quantity delivered by Seller and received by Buyer for such Day(s), multiplied by the
positive difference, if any, obtained by subtracting the applicable Spot Price from the Contract
Price. Imbalance Charges shall not be recovered under this clause (b)(ii), but Seller and/or Buyer
shall be responsible for Imbalance Charges, if any, as provided in clause (c)(iii) of this Gas
Annex. The amount of such unfavorable difference shall be payable five Local Business Days after
presentation of the performing party’s invoice, which shall set forth the basis upon which such
amount was calculated.

(iii) Notwithstanding clause (b)(ii) of this Gas Annex, the parties may agree to Alternative
Damages in a Confirmation executed in writing by both parties.

-2-

 

	(c)	 	Transportation, Nominations and Imbalances

(i) Seller shall have the sole responsibility for transporting the Gas to the Delivery
Point(s). Buyer shall have the sole responsibility for transporting the Gas from the
Delivery Point(s).

(ii) The parties shall coordinate their nomination activities, giving sufficient time to
meet the deadlines of the affected Transporter(s). Each party shall give the other party
timely prior notice, sufficient to meet the requirements of all Transporter(s) involved in
the Gas Transaction, of the quantities of Gas to be delivered and purchased each Day.
Should either party become aware that actual deliveries at the Delivery Point(s) are
greater or lesser than the Scheduled Gas, such party shall promptly notify the other
party.

(iii) The parties shall use commercially reasonable efforts to avoid imposition of any Imbalance
Charges. If Buyer or Seller receives an invoice from a Transporter that includes Imbalance Charges,
the parties shall determine the validity as well as the cause of such
Imbalance Charges. If the
Imbalance Charges were incurred as a result of Buyer’s receipt of quantities of Gas greater than or
less than the Scheduled Gas, then Buyer shall pay for such Imbalance Charges or reimburse Seller
for such Imbalance Charges paid by Seller. If the Imbalance Charges were incurred as a result of
Seller’s delivery of quantities of Gas greater than or less than the Scheduled Gas, then Seller
shall pay for such Imbalance Charges or reimburse Buyer for such Imbalance Charges paid by Buyer.
“Unpaid Amounts” as defined in Section 14 of this Agreement shall include unpaid Imbalance Charges,
if any.

	(d)	 	Quality and Measurement

All Gas delivered by Seller shall meet the pressure, quality and heat content requirements of the
Receiving Transporter. The unit of quantity measurement for purposes of Gas Transactions shall be
one MMBtu dry. Measurement of Gas quantities hereunder shall be in accordance with the established
procedures of the Receiving Transporter.

	(e)	 	Taxes

The Taxes payable by a party shall be determined pursuant to the option below that the parties
select in clause (l)(4):

Option A: Buyer Pays At and After Delivery Point: Seller shall pay or cause to be paid all taxes,
fees, levies, penalties, licenses or charges imposed by any government authority (“Taxes”) on or
with respect to the Gas prior to the Delivery Point(s). Buyer shall pay or cause to be paid all
Taxes on or with respect to the Gas at the Delivery Point(s) and all Taxes after the Delivery
Point(s). If a party is required to remit or pay Taxes that are the other party’s responsibility
hereunder, the party responsible for such Taxes shall promptly reimburse the other party for such
Taxes. Any party entitled to an exemption from any such Taxes or charges shall furnish the other party any necessary documentation thereof.

Option B: Seller Pays Before and At Delivery Point. Seller shall pay or cause to be paid all taxes,
fees, levies, penalties, licenses or charges imposed by any government authority (“Taxes”) on or
with respect to the Gas prior to the Delivery Point(s) and all Taxes at the Delivery Point(s).
Buyer shall pay or cause to be paid all Taxes on or with respect to the Gas after the Delivery
Point(s). If a party is required to remit or pay Taxes that are the other party’s responsibility
hereunder, the party responsible for such Taxes shall promptly reimburse the other party for such
Taxes. Any party entitled to an exemption from any such Taxes or charges shall furnish the other
party any necessary documentation thereof

	(f)	 	Billing, Payment and Audit

(i) Seller shall invoice Buyer for Gas delivered and received in the preceding Month and for any
other applicable charges, providing supporting documentation acceptable in industry practice to
support the amount charged. If the actual quantity delivered is not known by the billing date,
billing will be prepared based on the quantity of Scheduled Gas. The invoiced quantity will then be
adjusted to the actual quantity on the following Month’s billing or as soon thereafter as
actual delivery information is available.

-3-

 

(ii) Buyer
shall remit the amount due under clause (f)(i) of this Gas Annex, in immediately
available funds to the account specified from time to time by Seller, on or before the Payment Date
elected in clause (l)(5) of this Gas Annex. In the event any payments are due Buyer hereunder,
payment to Buyer shall be made in accordance with this clause (f)(ii).

(iii) In the event payments become due pursuant to clauses (b)(ii) or (b)(iii) of this Gas Annex,
the performing party may submit an invoice to the nonperforming party for an accelerated payment
setting forth the basis upon which the invoiced amount was calculated. Payment from the
nonperforming party will be due five Local Business Days after receipt of invoice.

(iv) If
the invoiced party, in good faith, disputes the amount of any such
invoice or any part
thereof; such invoiced party will pay such amount as it concedes to be correct; provided, however,
if the invoiced party disputes the amount due, it must provide supporting documentation acceptable
in industry practice to support the amount paid or disputed. In the event the parties are unable to
resolve such dispute, either party may pursue any remedy available at law or in equity to enforce
its rights pursuant to this clause (f).

(v) A party shall have the right, at its own expense, upon reasonable notice and at reasonable
times, to examine and audit and to obtain copies of the relevant portion of the books, records, and
telephone recordings of the other party only to the extent reasonably necessary to verify the
accuracy of any statement, charge, payment, or computation made under this Gas Annex. This right to
examine, audit, and to obtain copies shall not be available with respect to proprietary information
not directly relevant to Gas Transactions under this Gas Annex. All invoices and billings shall be
conclusively presumed final and accurate and all associated claims for under- or overpayments shall
be deemed waived unless such invoices or billings are objected to in writing, with adequate
explanation and/or documentation, within two years after the Month of Gas delivery. All retroactive
adjustments under clause (f) of this Gas Annex shall be paid in full by the party owing payment
within 30 Days of notice and substantiation of such inaccuracy.

	(g)	 	Title, Warranty and Indemnity

(i) Unless otherwise specifically agreed, title to the Gas shall pass from Seller to Buyer at the
Delivery Point(s).Seller shall have responsibility for and assume any liability with respect to the Gas prior to its
delivery to Buyer at the specified Delivery Point(s). Buyer shall have responsibility for and assume any liability with
respect to said Gas after its delivery to Buyer at the Delivery Point(s).

(ii) Seller warrants that it will have the right to convey and will transfer good and merchantable
title to all Gas sold
hereunder and delivered by it to Buyer, free and clear of all liens, encumbrances, and claims.
EXCEPT AS PROVIDED IN THIS CLAUSE (g)(ii), ALL OTHER WARRANTIES WITH RESPECT TO GAS, EXPRESS OR IMPLIED,
INCLUDING ANY WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE,
ARE DISCLAIMED.

(iii) Seller agrees to indemnify Buyer and save it harmless from all losses, liabilities or claims
including reasonable attorneys’ fees and costs of court (“Claims”), from any and all persons,
arising from or out of claims of title, personal injury or property damage from said Gas or other
charges thereon which attach before title passes to Buyer. Buyer agrees to indemnify Seller and
save it harmless from all Claims, from any and all persons, arising from or out of claims regarding
payment, personal injury or property damage from said Gas or other charges thereon which attach
after title passes to Buyer.

(iv) Notwithstanding the other provisions of this clause (g) of this Gas Annex, as between Seller
and Buyer, Seller will be liable for all Claims to the extent that such arise from the failure of
Gas delivered by Seller to meet the quality requirements of clause (d) of this Gas Annex.

	(h)	 	Force Majeure

(i) Except
with regard to a party’s obligation to make payment(s) due under
clause (f) of this Gas
Annex, Section 6 e) of this Agreement and Imbalance Charges under clause (c)(iii) of this Gas
Annex, neither party shall be liable to the

-4-

 

other for failure to perform a Firm obligation, to the extent such failure was caused by Force
Majeure. The term “Force Majeure” as employed herein means any cause not reasonably within the
control of the party claiming suspension, as further defined in clause (h)(ii) of this Gas Annex.

(ii) Force Majeure shall include, but not be limited to, the following: (A) physical events such as
acts of God, landslides, lightning, earthquakes, fires, storms or storm warnings, such as
hurricanes, which result in evacuation of the affected area, floods, washouts, explosions, breakage
or accident or necessity of repairs to machinery or equipment or lines of pipe; (B) weather related
events affecting an entire geographic region, such as low temperatures which cause freezing or
failure of wells or lines of pipe; (C) interruption and/or curtailment of Firm transportation
and/or storage by Transporters; (D) acts of others such as strikes, lockouts or other industrial
disturbances, riots, sabotage, insurrections or wars; and (E) governmental actions such as
necessity for compliance with any court order, law, statute, ordinance, regulation, or policy
having the effect of law promulgated by a governmental authority having jurisdiction. Seller and
Buyer shall make reasonable efforts to avoid the adverse impacts of a Force Majeure and to resolve
the event or occurrence once it has occurred in order to resume performance.

(iii) Neither party shall be entitled to the benefit of the provisions of Force Majeure to the
extent performance is affected by any or all of the following circumstances: (A) the curtailment of
interruptible or secondary Firm transportation unless primary, in-path, Firm transportation is also
curtailed; (B) the party, claiming excuse failed to remedy the condition and to resume the
performance of such covenants or obligations with reasonable dispatch; or (C) economic hardship, to
include, without limitation, Seller’s ability to sell Gas at a higher or more advantageous price
than the Contract Price, Buyer’s ability to purchase Gas at a lower or more advantageous price than
the Contract Price, or a regulatory agency disallowing, in whole or in part, the pass through of
costs resulting from this Agreement; (D) the loss of Buyer’s market(s) or Buyer’s inability to use
or resell Gas purchased hereunder, except, in either case, as provided in clause (h)(ii) of this
Gas Annex; (E) the loss or failure of Seller’s gas supply or depletion of reserves, except, in
either case, as provided in clause (h)(ii) of this Gas Annex. The party claiming Force Majeure
shall not be excused from its responsibility for Imbalance Charges.

(iv) Notwithstanding anything to the contrary herein, the parties agree that the settlement of
strikes, lockouts or other industrial disturbances shall be within the sole discretion of the party
experiencing such disturbance.

(v) The party whose performance is prevented by Force Majeure must provide notice to the other
party. Initial notice may be given orally; however, written notice with reasonably full
particulars of the event or occurrence is required as soon as reasonably possible. Upon providing
written notice of Force Majeure to the other party, the affected party will be relieved of its
obligation, from the onset of the Force Majeure event, to make or accept delivery of Gas, as
applicable, to the extent and for the duration of Force Majeure, and neither party shall be deemed
to have failed in such obligations to the other during such occurrence or event.

(vi) Notwithstanding clauses (h)(ii) and (h)(iii) of this Gas Annex, the parties may agree to
alternative Force Majeure provisions in a Confirmation executed in writing by both parties.

If the pre-printed form portion of this Agreement is the 2002 ISDA Master Agreement form, Section
5(b)(ii) of this Agreement shall not apply to any Gas Transaction.

	(i)	 	Limitation of Liability

FOR BREACH OF ANY PROVISION FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS
PROVIDED, SUCH EXPRESS REMEDY OR MEASURE OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE
REMEDY. A PARTY’S LIABILITY HEREUNDER SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION,
AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. IF NO REMEDY OR
MEASURE OF DAMAGES IS EXPRESSLY PROVIDED HEREIN OR IN A GAS TRANSACTION, A PARTY’S
LIABILITY SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY. SUCH DIRECT ACTUAL DAMAGES
SHALL BE THE SOLE AND EXCLUSIVE REMEDY, AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR
IN EQUITY ARE WAIVED. UNLESS EXPRESSLY HEREIN PROVIDED, NEITHER PARTY SHALL BE LIABLE
FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS

-5-

 

OR OTHER BUSINESS INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY
INDEMNITY PROVISION OR OTHERWISE. IT IS THE INTENT OF THE PARTIES THAT THE LIMITATIONS
HEREIN IMPOSED ON REMEDIES AND THE MEASURE OF DAMAGES BE WITHOUT REGARD TO THE
CAUSE OR CAUSES RELATED THERETO, INCLUDING THE NEGLIGENCE OF ANY PARTY, WHETHER
SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, OR ACTIVE OR PASSIVE. TO THE EXTENT ANY
DAMAGES REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, THE PARTIES ACKNOWLEDGE THAT
THE DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE, OR OTHERWISE OBTAINING AN
ADEQUATE REMEDY IS INCONVENIENT AND THE DAMAGES CALCULATED HEREUNDER CONSTITUTE
A REASONABLE APPROXIMATION OF THE HARM OR LOSS.

	(J)	 	Certain Amendments to this Agreement for Gas Transactions

	 	(i)	 	Section 5(a)(i). With respect to all Gas Transactions, the words “or delivery under Section
2(a)(i) or 2(e)” in the second line of Section 5(a)(i) of
this Agreement and, if the pre-printed form portion
of this Agreement is the 2002 ISDA Master Agreement form, the words “or the first Local Delivery Day in the
case of any such delivery” and “, in each case,” in the third and fourth lines of Section 5(a)(i)
of this Agreement, are hereby deleted.
	 
	 	(ii)	 	Section 5(a)(ii). With respect to all Gas Transactions, the words “or delivery under Section
2(a)(i) or 2(e)” in the second line of Section 5(a)(ii) are hereby deleted and the words “or to
deliver or receive Gas, the exclusive remedy for which is provided in clause (b)(ii) of the Gas
Annex to the Schedule” are hereby added at the end of the parenthetical of Section 5(a)(ii) if the
pre-printed form portion of this Agreement is the 1992 ISDA Master Agreement form or Section
5(a)(ii)(l) if the pre-printed form portion of this Agreement is the 2002 ISDA Master Agreement
form.
	 
	 	(iii)	 	Section 5(a)(v,). With respect to all Gas Transactions, (A) if the pre-printed form portion
of this Agreement is the 1992 ISDA Master Agreement, the parenthetical “(other than by failing to
make a delivery)” is inserted after the word
“defaults” in clause (1) of Section 5(a)(v) and the
words “or delivery” in clause (2) of Section 5(a)(v) of this Agreement are deleted; and (B) if the
pre-printed form portion of this Agreement is the 2002 ISDA Master Agreement, the words “(including
any delivery due on the last delivery or exchange date of) a Specified Transaction or” in clause
(3) of Section 5(a)(v) of this Agreement are deleted.

	(k)	 	Definitions. For purposes of this Gas Annex, the following definitions apply:

	 	(i)	 	“Alternative Damages” shall mean such damages, expressed in dollars or dollars per MMBtu, as
the parties shall agree upon in the Transaction Confirmation, in the event either Seller or Buyer
fails to perform a Firm obligation to deliver Gas in the case of Seller or to receive Gas in the
case of Buyer.
	 
	 	(ii)	 	“British thermal unit” or “Btu” shall mean the International BTU, which is also called the Btu
(IT).
	 
	 	(iii)	 	“Buyer” shall mean the party receiving Gas under a Gas Transaction.
	 
	 	(iv)	 	“Contract Price” shall mean the amount expressed in U.S. Dollars per MMBtu to be paid by Buyer
to Seller for the purchase of Gas as agreed to by the parties in a Gas Transaction.
	 
	 	(v)	 	“Contract Quantity” shall mean the quantity of Gas to be delivered and taken as agreed to by
the parties in a Gas Transaction.
	 
	 	(vi)	 	“Cover Standard” shall mean that if there is an unexcused failure to take or deliver any
quantity of Gas pursuant to this Gas Annex, then the performing party shall use commercially
reasonable efforts to (i) if Buyer is the performing party, obtain Gas, (or an alternate fuel if
elected by Buyer and replacement Gas is not available),or (ii) if Seller is the performing party,
sell Gas, in either case, at a price reasonable for the delivery or production area, as applicable,
consistent with: the amount of notice provided by the nonperforming party; the immediacy of the
Buyer’s Gas consumption needs or Seller’s Gas sales requirements, as applicable; the quantities
involved; and the anticipated length of failure by the nonperforming party.

-6-

 

	 	(vii)	 	“Day” shall mean a period of 24 consecutive hours, coextensive with a “day” as defined by the
Receiving Transporter in a particular transaction.
	 
	 	(viii)	 	“Delivery Period” shall be the period during which deliveries are to be made as agreed to by
the parties in a Gas Transaction.
	 
	 	(ix)	 	“Delivery Point(s)” shall mean such point(s) as are agreed to by the parties in a Gas
Transaction.
	 
	 	(x)	 	“EFP” shall mean, when used in a Confirmation of a Gas Transaction, the purchase, sale or
exchange of natural Gas as the “physical” side of an exchange for physical transaction involving
gas futures contracts. EFP shall incorporate the meaning and remedies of “Firm”, provided that a
party’s excuse for nonperformance of its obligations to deliver or receive Gas will be governed by
the rules of the relevant futures exchange regulated under the U.S. Commodity Exchange Act (7 U.S.
Code 1, as amended).
	 
	 	(xi)	 	“Firm” shall mean that either party may interrupt its performance without liability only to
the extent that such performance is prevented for reasons of Force Majeure; provided, however, that
during Force Majeure interruptions, the party invoking Force Majeure may be responsible for any
Imbalance Charges as set forth in clause (c)(iii) of this Gas Annex related to its interruption
after the nomination is made to the Transporter and until the change in deliveries and/or receipts
is confirmed by the Transporter.
	 
	 	(xii)	 	“Gas” shall mean any mixture of hydrocarbons and noncombustible gases in a gaseous state
consisting primarily of methane.
	 
	 	(xiii)	 	“Imbalance Charges” shall mean any fees, penalties, costs or charges (in cash or in kind)
assessed by a Transporter for failure to satisfy the Transporter’s balance and/or nomination
requirements.
	 
	 	(xiv)	 	“Interruptible” shall mean that either party may interrupt its performance at any time for
any reason, whether or not caused by an event of Force Majeure, with no liability, except such
interrupting party may be responsible for any Imbalance Charges as set forth in clause (c)(iii) of
this Gas Annex related to its interruption after the nomination is made to the Transporter and
until the change in deliveries and/or receipts is confirmed by Transporter.
	 
	 	(xv)	 	“MMBtu” shall mean one million British thermal units, which is equivalent to one dekatherm.
	 
	 	(xvi)	 	“Month” shall mean the period beginning on the first Day of the calendar month and ending
immediately prior to the commencement of the first Day of the next calendar month.
	 
	 	(xvii)	 	“Payment Date” shall mean the payment date for Gas Transactions under this Gas Annex, as
specified in clause (l)(5) of this Gas Annex.
	 
	 	(xviii)	 	“Receiving Transporter” shall mean the Transporter receiving Gas at a Delivery Point, or
absent such receiving Transporter, the Transporter delivering Gas at a Delivery Point.
	 
	 	(xix)	 	“Scheduled Gas” shall mean the quantity of Gas confirmed by Transporter(s) for movement,
transportation or management.
	 
	 	(xx)	 	“Seller” means the party delivering Gas under a Gas Transaction.
	 
	 	(xxi)	 	“Spot Price” as referred to in clause (b)(ii) of this Gas Annex shall mean the price
published as the Spot Price Index for the relevant Day; provided, if there is no single price
published as the Spot Price Index for such location for such Day, but there is published a range of
prices, then the Spot Price shall be the average of such high and low prices. If no price or range
of prices is published for such Day, then the Spot Price shall be the average of the following: (i)
the price (determined as stated above) for the first Day for which a price or range of prices is
published that next precedes the relevant Day; and (ii) the price (determined as stated above) for
the first Day for which a price or range of prices is published that next follows the relevant Day.
	 
	 	(xxii)	 	“Spot Price Index” shall mean, with respect to a Gas Transaction, unless otherwise specified
in the Confirmation for that Transaction, the “Daily Midpoint” price set forth in Gas Daily
(published by Platts), or any successor publication, in the column “Daily Price Survey” under the
listing applicable to the geographic location closest in proximity to the Delivery Point(s) for the
relevant Day or, if an alternative index or price is specified in clause (l)(6) below, such
alternative index or price.
	 
	 	(xxiii)	 	“Transporter(s)” shall mean all Gas gathering or pipeline companies, or local distribution
companies, acting in the capacity of a transporter, transporting Gas for Seller or Buyer upstream
or downstream, respectively, of the Delivery Point pursuant to a particular Gas Transaction.

-7-

 

	(l)	 	Elective Provisions

     1. (a)(ii) — Outstanding Gas Transactions. This Gas Annex shall apply to the following pre-existing
Gas Transactions pursuant to clause (a)(ii):

           Option A: All Gas Transactions outstanding between the parties as of the date this Gas Annex
becomes effective.

          
Option B: The Gas Transactions listed in Schedule I to this Gas Annex.

           Option C: None of the Gas Transactions between the parties that were executed prior to the date
this Gas Annex becomes effective.

     If none of the above options is selected, Option A shall apply.

     2. (a)(iii) — Outstanding Gas Credit Support

           Outstanding Gas Credit Support held by a party in connection with Outstanding Gas Transactions
shall be deemed to have been delivered under and in connection with this Agreement pursuant to
clause (a)(iii).

     If not checked, not applicable.

     3. (b)(ii) — Performance Obligation (remedy for breach of Firm obligation)

           Option A: Cover Standard

           Option B: Spot Price Standard

     If neither option is selected, Option A shall apply.

     4. (e) — Taxes

           Option A: Buyer Pays At and After Delivery Point

           Option B: Seller Pays Before and At Deliver Point

     If neither option is selected, Option A shall apply.

     5. (f)(ii) — Payment Date

           Option A: the later of the 25th Day of Month following Month of delivery or 10 Days after
receipt of the invoice by Buyer (provided that if the Payment Date is not a Local Business Day,
payment is due on the next Local Business Day following that date).

           Option B: the later of the Day of Month following Month of delivery or 10 Days after receipt of the
invoice by Buyer (provided that if the Payment Date is not a Local Business Day, payment is due on
the next Local Business Day following that date).

           Option C: Notwithstanding anything to the contrary in the Schedule, payments with respect to
both Gas Transactions and Power Transactions (as defined separately in the Schedule) will be netted
and payable on or before the later of the 20th Day of Month following Month of delivery or 10 Days
after receipt of the invoice by Buyer (provided that if the Payment Date is not a Local Business
Day, payment is due on the next Local Business Day following that date).

           Option D: Notwithstanding anything to the contrary in the Schedule, payments with respect to
both Gas Transactions and Power Transactions (as defined separately in the Schedule) will be netted
and payable on or before the

-8-

 

later of the 25th Day of Month following Month of delivery or 10 Days after receipt of the
invoice by Buyer (provided that if the Payment Date is not a Local Business Day, payment is due on
the next Local Business Day following that date).

     If none of the above options is selected, Option A shall apply.

	 	6.	 	(k)(xxii) — Alternative to Spot Price Index. The parties have selected the following alternative
index as the Spot Price Index:                      If no index is specified, the Spot Price Index specified in
clause (l)(xxi) applies.

(m) Notices for Gas Transactions

	 	 	 
	PARTY A	 	PARTY B
	Invoices:	 	Invoices:
	 
	 	 
	As set forth in Part 4 of the
Schedule unless otherwise
set forth below:

	 	Asset forth in Part 4 of the
Schedule unless otherwise
set forth below:
	 
	 	 
	Attn:

	 	Attn:
	 
	 	 
	 

Phone:

	 	 
 Phone:
	 
	 	 
	 

Facsimile:

	 	 
 Facsimile:
	 
	 	 
	 

	 	 
 
	 
	 	 
	Nominations:

	 	Nominations:
	As set forth in Part 4 of the
Schedule unless otherwise
set forth below:

	 	As set forth in Part 4 of the
Schedule unless otherwise
set forth below:
	 
	 	 
	Attn:

	 	Attn:
	 
	 	 
	 

Phone:

	 	 
 Phone:
	 
	 	 
	 

Facsimile:

	 	 
 Facsimile:
	 
	 	 
	 

	 	 
 
	 
	 	 
	Confirmations:

	 	Confirmations:
	As set forth in Part 4 of the
Schedule unless otherwise
set forth below:

	 	As set forth in Part 4 of the
Schedule unless otherwise
set forth below:
	 
	 	 
	Attn:

	 	Attn:
	 
	 	 
	 

Phone:

	 	 
 Phone:
	 
	 	 
	 

Facsimile:

	 	 
 Facsimile:
	 
	 	 
	 

	 	 
 

-9-

 

	 	 	 
	Option Exercise:	 	Option Exercise:
	 
	 	 
	As set forth in Part 4 of the Schedule unless otherwise set forth below:

	 	As set forth in Part 4 of the Schedule unless otherwise set forth below:
	 
	 	 
	Attn:

	 	Attn:
	 
	 	 
	 

Phone:

	 	 
 Phone:
	 
	 	 
	 

Facsimile:

	 	 
 Facsimile:
	 
	 	 
	 

	 	 
 

	 	 	 	 	 	 	 
	o Wire Transfer .or. o ACH (check one box):	 	o Wire Transfer .or. o ACH (check one box):
	 
	 	 
	As set forth in Part 4 of the Schedule unless otherwise set forth below:	 	As set forth in Part 4 of the Schedule unless otherwise set forth below:
	 
	 	 	 	 	 	 
	Bank:

	 	 	 	Bank:	 	 
	 

	 	 
	 	 	 	 
	ABA:

	 	 	 	ABA:	 	 
	 

	 	 
	 	 	 	 
	Account:

	 	 	 	Account:	 	 
	 

	 	 
	 	 	 	 
	Other Details

	 	 	 	Other Details:	 	 
	 

	 	 
	 	 	 	 

(n) Other Provisions/Modifications to this Gas Annex.

-10-

 

EXHIBIT F

SUBORDINATION AGREEMENT

     This
Subordination Agreement dated as of
                                         (this “Subordination Agreement”), is made
by (i)
                                         the
(the “Subordinated Creditors”), (ii)                      (the “Debtors”), and (iii)
Citibank, N.A., as Administrative Agent, in favor of the Agents and the Banks.

INTRODUCTION

     This Subordination Agreement is entered into in connection with the Credit Agreement dated as of
February 23, 2007 (as amended or otherwise modified from time to time, the “Credit
Agreement”) among Citibank, N.A., Calyon New York Branch and
                    . The Subordinated
Creditors and Debtors are entering this Subordination Agreement pursuant to the terms of the Credit
Agreement. In consideration of the foregoing, the Subordinated Creditors, the Debtors and the
Administrative Agent hereby agree as follows:

SECTION
1. Subordination. The Subordinated Obligations shall be subordinate and junior in
right of payment, to the extent and in the manner hereinafter set forth, to the prior payment and
performance of all Senior Obligations, whether now outstanding or hereafter incurred:

     1.1. Subordination. Except as set forth in this Section 1.1, until the date that all Senior
Obligations are Performed in Full, all Qualifying Hedges are terminated, the Counterparty removes
each Bank as a party to the Credit Agreement and the Counterparty notifies the Senior Creditors
that all of the foregoing have occurred (the “Termination Date”), no Debtor shall directly
or indirectly, declare, order, pay, make or set apart any sum or any payment or prepayment of
principal of, premium, if any, or interest on, or redemption,
purchase, retirement, defeasance
(including, without limitation, in substance or legal defeasance), sinking fund or other payment
with respect to, make any delivery related to, or otherwise perform, the Subordinated Obligations,
and the Holders of the Subordinated Obligations shall not accept, take or receive, by payment,
delivery or otherwise, in cash or in kind, by’ way of setoff, or in any other manner, from or on
behalf of any Debtor the whole or any part of any sums that may now or hereafter be owing to, or
any Property that may at any time be deliverable to, the Holders of the Subordinated Obligations on
account of the Subordinated Obligations (other than Restructuring Securities). Subject to the
conditions set forth herein (including, without limitation, Sections 1.2 and 1.5 of this
Subordination Agreement), the Debtors may pay and deliver to the Holders of Subordinated
Obligations, and the Holders of Subordinated Obligations may accept and receive on account of the
Subordinated Obligations, Permitted Payments and Permitted Deliveries.

     1.2. Bankruptcy, Etc. In the event of any Proceeding with respect to any Debtor, the holders of
Senior Obligations shall be entitled to have Performed in Full all Senior Obligations before the
Holders of the Subordinated Obligations are entitled to receive payment, delivery or other
performance in respect of any Subordinated Obligations (other than Restructuring Securities) and,
to that end, the holders of Senior Obligations shall be entitled to receive for application in
payment thereof any payment or distribution of any kind or character, whether in cash or property
(including securities), which may be payable or deliverable in any such Proceeding in respect of
the Subordinated Obligations, including, without limitation, any Cash or property payable or
deliverable by reason of the payment of any other obligation of a Debtor that is subordinated to
the Subordinated Obligations (other than Restructuring Securities).

 

 

     1.3. Proofs of Claim; Etc. In the event of any Proceeding referred to in Section 1.2 above, if any
Holder of Subordinated Obligations has not filed any proof of claim or other instrument of similar
character necessary to enforce the obligations of any Debtor in respect of the Subordinated
Obligations (a “Proof of Claim”) held by such Holder within 30 days before the expiration
of the time to file the same, then in such event the Administrative Agent may, as attorney-in-fact
for such Holder of Subordinated Obligations, duly file such Proof of Claim, and each Holder of
Subordinated Obligations appoints the Administrative Agent as an attorney-in-fact for such Holder
of Subordinated Obligations for the limited purpose of filing any such Proof of Claim in accordance
with the terms of this Section 1.3. In the event the Administrative Agent makes any filing in
accordance with the authority granted hereby, no Holder of Subordinated Obligations shall be
entitled to amend or otherwise modify such filing without the prior, written consent of the
Administrative Agent. Notwithstanding the foregoing, each Holder of Subordinated Obligations shall
nevertheless retain, exclusively, all rights to enforce and to vote all Proofs of Claim and
otherwise to act in any Proceeding in its capacity as a Holder of Subordinated Obligations
(including the right to vote to accept or reject any plan of reorganization, composition,
arrangement or liquidation) to the extent provided by applicable law. Except as expressly set forth
in this Subordination Agreement, the Holders of Subordinated Obligations shall not be deemed to
have waived or relinquished any rights that they may have with respect to any claims or otherwise
in connection with any Proceeding and hereby reserve all such rights.

     1.4. No Waiver of Default. The failure of any Debtor to make any payment or delivery with respect
to the Subordinated Obligations by reason of the operation of this Subordination Agreement shall
not be construed as preventing the occurrence of a default under the Subordinated Obligations or
the accrual of default interest in accordance with the terms of the Subordinated Obligations.

     1.5. Standstill. No Holder of Subordinated Obligations shall take any Collection Action during the
continuance of any Event of Default or any Present Value Deficiency; provided that the restrictions
contained in this Section 1.5 shall not apply after the commencement of any Proceeding with respect
to any Debtor (other than any such Proceeding initiated by a Holder of Subordinated Obligations).

     1.6. Turnover. If any Holder of the Subordinated Obligations shall have received any payment,
delivery or distribution of assets of a Debtor of any kind or character (including any such payment
or distribution which may be payable or deliverable by reason of the payment of any other
obligation of a Debtor that is subordinated to the payment of the Subordinated Obligations), in
violation of this Agreement, then such payment or distribution shall be deemed to have been
received by the Holders of the Subordinated Obligations in trust for the benefit of the holders of
the Senior Obligations and such payment, delivery or distribution shall be paid over or delivered
forthwith to the Administrative Agent for the holders of the Senior Obligations or, to the extent
required by applicable law, to the trustee in bankruptcy, receiver, liquidating trustee, custodian,
assignee, agent, representative or other Person making payment or distribution of assets of the
applicable Debtor, for application to the payment of all Senior Obligations remaining unpaid, to
the extent necessary for all Senior Obligations to be Performed in Full; provided that, if
any such assets are tangible goods, the holders of the Senior Obligations may elect to have the
Holders of the Subordinated Obligations deliver forthwith to the Administrative Agent Cash in an
amount equal to the fair market value of such assets in lieu of delivery of such assets.

     1.7. Limitation on Amendments. The Debtors and the Holders of Subordinated Obligations will not
amend, supplement or otherwise modify any of the terms or provisions of this Subordination
Agreement without the prior written consent of the Required Banks.

     1.8. No Impairment of Senior Rights. No right of any present or future holder of any Senior
Obligations to enforce subordination as herein provided shall at any time or in any way be
prejudiced or impaired by any failure to act on the part of any Debtor, or by any noncompliance by
any Debtor with the

 

 

terms, provisions and covenants of this Subordination Agreement, regardless of any knowledge
thereof that any such holder of Senior Obligations may have or be otherwise charged with or any
amendment or modification of or supplement to the Credit Documents or any exercise or non-exercise
of any right, power or remedy under or in respect of the Senior Obligations.

     1.9 No Impairment of Subordinated Rights. The provisions hereof are solely for the purpose of
defining the relative rights of the holders of Senior Obligations, on the one hand, and the Holders
of the Subordinated Obligations, on the other hand, and nothing herein shall impair, as between any
Debtor and the Holder of the Subordinated Obligations, the obligation of each Debtor to pay to the
Holders of the Subordinated Obligations the entire amount thereof in accordance with the terms
thereof, subject to the rights of holders of Senior Obligations as herein provided.

     1.10. Subrogation. Following the Termination Date, in the event cash or other property otherwise
payable to the Holders of Subordinated Obligations shall have been applied pursuant to this
Agreement (or otherwise) to the Senior Obligations, then the Holders of the Subordinated
Obligations shall be subrogated to the rights of the holders of the Senior Obligations to receive
payments or distributions of assets made on or in respect of Senior Obligations until all amounts
constituting Subordinated Obligations shall be paid in full, and, for the purposes of such
subrogation, no payments to the holders of Senior Obligations of any cash, property, stock or
obligations to which the Holders of the Subordinated Obligations would be entitled shall, as
between the Debtors, creditors (other than the holders of Senior Obligations) and the Holders of
the Subordinated Obligations, be deemed to be a payment by the Debtors to or on account of Senior
Obligations; provided that in no event will the Holders of Subordinated Obligations have
any right, title or interest in any Collateral, letter of credit existing for the benefit of any
holder of Senior Obligations or other security, all of which may be released, returned, applied to
obligations or otherwise dealt with in such manner as the Senior Creditors may elect.

     1.11. Notices to Holders of Subordinated Obligations. All notices provided for under this
Subordination Agreement shall be in writing and shall be deemed to have been validly given only (1)
after receipt of confirmation or answer back if sent by telecopy, or other similar facsimile
transmission, (2) one Business Day after deposit with a reputable overnight courier service for
next Business Day delivery with all charges prepaid, or (3) when delivered, if hand-delivered by
messenger, in each case addressed to the party to be notified as follows: (a) if to any Holder of
Subordinated Obligations listed on the signature pages hereto, addressed to such Holder at the
address specified for such communications on such signature pages, or at such other address as such
Holder shall have specified to the Administrative Agent in writing, (b) if to any other Holder of
any Subordinated Obligations, addressed to such other Holder at such address as such other Holder
shall have specified to the Administrative Agent in writing or, if any such other Holder shall not
have so specified an address to the Administrative Agent, then addressed to such other Holder in
care of the Counterparty at the Counterparty’s address for notice provided in the Credit Agreement
(and the Counterparty hereby agrees to promptly forward any such notice so received to the intended
recipient using the last known address for such recipient in the
Counterparty’s records, but its
failure to do so shall not affect the validity of such notice), (c) if to the Administrative Agent,
addressed to it at its address for notice provided in the Credit Agreement, or at such other
address as the Administrative Agent shall have specified for itself to the Holders of Subordinated
Obligations by notice and (d) if to any Debtor, addressed to it at its address for notice provided
in the Credit Agreement, or at such other address as such Debtor shall have specified for itself by
notice to the Administrative Agent and the Holders of the Subordinated Obligations. Upon request by
the Administrative Agent, the Counterparty shall promptly provide a list of each Holder of
Subordinated Obligations including the last known address for such Holder.

     1.12. Acknowledgment of Subordination. Each Holder of the Subordinated Obligations acknowledges and
agrees that:

 

 

          (1) the holders of Senior Obligations have relied on the terms and provisions of this Subordination
Agreement in executing and delivering the Credit Agreement and in entering into Qualifying Hedges
contemplated thereby and shall continue to rely on such terms and provisions in entering into
Qualifying Hedges from time to time, and the provisions of this Subordination Agreement are for the
benefit of and may be enforced by the holders of the Senior Obligations; and

          (2) the Holders of the Subordinated Obligations will not challenge the validity or enforceability
of the subordination provisions contained in this Subordination Agreement.

     1.13. Reinstatement. Each Holder of Subordinated Obligations agrees that the provisions of this
Subordination Agreement shall continue to be effective or be reinstated, as the case may be, if at
any time any payment (in whole or in part) of any of the Senior Obligations is rescinded or must
otherwise be restored by any holder of Senior Obligations by court order, following the insolvency,
bankruptcy or reorganization of any Debtor, or otherwise, as though such payment had not been made.

SECTION 2. Definitions. Capitalized terms used herein, but not defined herein shall have the
meanings set forth for such terms in the Credit Agreement. The following terms shall have the
following meanings:

     “Cash” shall mean lawful money of the United States of America and any other payment in
Dollars acceptable to the Administrative Agent.

     “Collection Action” shall mean (a) any suit or any commencement of any other legal action
against any Debtor to enforce payment of or collect the whole or any part of the Subordinated
Obligations, (b) acceleration of the maturity of any of the Subordinated Obligations, (c)
commencement or initiation of any Proceeding against any Debtor, (d) any action under the
provisions of any state, local, federal or foreign law, including, without limitation, the Uniform
Commercial Code, or under any contract or agreement, to enforce any Lien against, or foreclose
upon, any property of any Debtor or (e) any demand on any Debtor for any payment on account of the
Subordinated Obligations; provided, however, that the term “Collection Action” shall not
include any suit or action initiated or maintained to prevent the loss of a claim as a result of
the running of any applicable statute of limitations or other similar restriction on claims.

     “Holder of Subordinated Obligations” shall mean each Subordinated Creditor and the
successors and assigns of any Subordinated Creditor or other Holder of Subordinated Obligations.

     “Performed in Full” shall mean, (i) as to any Senior Obligations that are monetary
obligations, payment in full of such Senior Obligations in Cash, and (ii) as to any Senior
Obligations that are not monetary obligations, performance in full of such Senior Obligations.

     “Permitted Deliveries” shall mean deliveries made when no Event of Default exists and no
Present Value Deficiency exists.

     “Permitted Payments” shall mean payments made when no Event of Default exists and no
Present Value Deficiency exists.

     “Proceeding” shall mean, with respect to any Person, any insolvency or bankruptcy
proceedings by or against such Person or its assets, or any receivership, liquidation,
reorganization, arrangement or other similar proceedings in connection therewith, or any
proceedings for liquidation, dissolution or other winding-up of any such Person whether or not
involving insolvency or bankruptcy or any assignment for the benefit of creditors.

 

 

     “Restructuring
Securities” shall mean (i) debt securities of any Debtor, as reorganized or
readjusted, provided for by a plan of reorganization or readjustment authorized by an order or
decree of a court of competent jurisdiction in a Proceeding under any applicable law, so long as
such securities (a) are subordinated in right of payment to all Senior Obligations and to all debt
securities issued in exchange for Senior Obligations to the same extent as, or to a greater extent
than, the Subordinated Obligations are so subordinated as provided for in this Subordination
Agreement and (b) have terms that are no less favorable to the holders of Senior Obligations than
the terms set forth in this Subordination Agreement; (ii) equity securities of any Debtor, as
reorganized or readjusted, provided for by a plan of reorganization or readjustment authorized by
an order or decree of a court of competent jurisdiction in a Proceeding under any applicable law,
so long as (a) the holders of Senior Obligations receive (1) debt securities and equity securities
(and such equity securities are senior to the equity securities received by Holders of the
Subordinated Obligations), (2) solely equity securities, and such equity securities are senior to
the equity securities received by the Holders of the Subordinated Obligations, or (3) solely debt
securities and (b) the equity securities received by the Holders of the Subordinated Obligations,
if any, do not contain a mandatory redemption date (or require dividends to be paid on a date) that
is earlier than the mandatory redemption date or final maturity date of the securities received by
the holders of the Senior Obligations; or (iii) common equity of a Debtor, provided, however, that
if such equity is received in connection with a Proceeding, it must satisfy the requirements of
clause (ii) above.

     “Senior Creditors” shall mean the Banks (including, without limitation, each Designated Affiliate
of a Bank) and the Agents.

     “Senior Obligations” shall mean all Obligations now existing or hereafter created
(including, without limitation, any interest accruing subsequent to the commencement of any case or
proceeding, whether or not such interest is an allowed claim under applicable law).

     “Subordinated Obligations” shall mean all liabilities of any Debtor to any Holder of
Subordinated Obligations under, in connection with or as a result of any Hedge or any Debt, whether
such liability arises by reason of contract, law, equity, court order, substantive consolidation,
piercing the corporate veil, claims of mismanagement or fraud or otherwise, including, without
limitation, liabilities for payments, deliveries, principal, interest, fees, costs, expenses, early
termination amounts and other amounts.

SECTION 3. Subordination Absolute. This is an irrevocable agreement of subordination and
the Senior Creditors may, without notice to any Person and without impairing or releasing the
obligations of the Debtors or the Holders of the Subordinated Obligations; (a) create Senior
Obligations by entering into Hedges or otherwise; (b) change the terms of or increase the amount of
the Senior Obligations by extending, rearranging, amending, supplementing or otherwise modifying
any of the Credit Documents or any Senior Obligations; (c) sell, exchange, release, or otherwise
deal with any letter of credit or any collateral securing any Senior Obligations; (d) release any
Person, including, without limitation, any Debtor or any guarantor, liable in any manner for the
payment or collection of any Senior Obligations; (e) exercise or refrain from exercising any rights
against any Debtor or any other Person; and (f) apply any sums received from whatever source, to
the payment of the Senior Obligations, in any order. The liability of each Holder of Subordinated
Obligations under this Subordination Agreement shall be absolute and unconditional irrespective of:

     (a) The lack of validity or unenforceability of the Senior Obligations or any Credit Document for
any reason whatsoever, including that the act of creating the Senior Obligations is ultra vires,
that the officers or representatives executing the documents creating the Senior Obligations
exceeded their authority, that the Senior Obligations violate usury or other laws, or that any
Person has

 

 

defenses to the payment of the Senior Obligations, including breach of warranty, statute of frauds,
bankruptcy, statute of limitations, lender liability, or accord and satisfaction;

     (b) Any change in the time, manner, or place of payment of, or in any term of, any of the Senior
Obligations, any increase, reduction, extension, or rearrangement of the Senior Obligations, any
amendment, supplement, or other modification of the Credit Documents, or any waiver or consent
granted under the Credit Documents, including waivers of the payment and performance of the Senor
Obligations;

     (c) Any release, exchange, subordination, waste, or other impairment (including negligent, willful,
unreasonable, or unjustifiable impairment) of any collateral securing payment of the Senior
Obligations; the failure of any Agent, any Bank or any other Person to exercise diligence or
reasonable care in the preservation, protection, enforcement, sale, or other handling of any
collateral; the fact that any Lien or assignment related to any collateral for the Senior
Obligations shall not be properly perfected, or shall prove to be unenforceable or subordinate to
any other Lien or assignment;

     (d) Any full or partial release of any Person;

     (e) The failure to apply or the manner of applying payments, collateral or the proceeds of
collateral against the Senior Obligations;

     (f) Any change in the existence, organization or structure of any Person; any change in the
shareholders, directors, or officers of any Person; or the insolvency, bankruptcy, liquidation, or
dissolution of any Person or any defense that may arise in connection with or as a result of any
such insolvency, bankruptcy, liquidation or dissolution;

     (g) The failure to give notice of any Hedge, notice of any amendment, supplement, or other
modification of any Credit Document, notice of the execution of any document or agreement creating
new Senior Obligations, notice of any default or event of default, however denominated, under the
Credit Documents, notice of intent to demand, notice of demand, notice of presentment for payment,
notice of nonpayment, notice of intent to protest, notice of protest, notice of grace, notice of
dishonor, notice of intent to accelerate, notice of acceleration, notice of bringing of suit,
notice of any Person’s transfer of Senior Obligations, notice of the financial condition of or
other circumstances regarding any Person, notice of any Event of Default, any Present Value
Deficiency or any other Present Value Matter or any other notice of any kind relating to the Senior
Obligations;

     (h) Any payment or grant of collateral by any Person to any Bank, Agent or other Person being held
to constitute a preference under bankruptcy laws, or for any reason any Bank, Agent or other Person
is required to refund such payment or release such collateral;

     (i) Any other action taken or omitted which affects the Senior Obligations, whether or not such
action or omission prejudices any Holder of Subordinated Obligations;

     (j) Any claim or right of set-off that any Holder of Subordinated Obligations may have; and

     (k) Any other circumstances which might otherwise constitute a defense available to, or a
discharge of any Person.

 

 

SECTION 4. Miscellaneous.

	4.1.	 	At the request of any Senior Creditor in writing, the Holders of the Subordinated
Obligations will cause all Subordinated Obligations to be evidenced by a writing evidencing
such Subordinated Obligations and will inscribe a statement or legend thereon to the effect
that the Subordinated Obligations evidenced by such writing are subordinate to the Senior
Obligations in the manner and to the extent set forth in this Subordination Agreement.

	4.2.	 	The Holders of the Subordinated Obligations shall not assign or otherwise transfer to any
other Person any interest in the Subordinated Obligations unless such Holder causes the
assignee or other transferee to execute and deliver to the Senior Creditors a subordination
agreement in substantially the form of this Subordination Agreement.

	4.3	 	The provisions of Article VII of the Credit Agreement shall inure to the benefit of the
Administrative Agent with respect to this Subordination Agreement and shall be binding on the
parties hereto. Without limiting the generality of the foregoing, the Administrative Agent
shall have no duty or responsibility to any Debtor or any Holder of Subordinated Obligations.

	4.4	 	Each Debtor and each Subordinated Creditor hereby represents and warrants to the Senior
Creditors that the execution, delivery and performance of this Subordination Agreement by such
Debtor or Subordinated Creditor, as the case may be, do not contravene any restriction under
any material agreement binding on or affecting such Debtor or Subordinated Creditor, as the
case may be.

SUBORDINATED CREDITORS:

 

			

	 

	 	 

					
	Address:
	 	 	 	 
	 

	 	 

	 	 

			

	 

	 	 

					
	Address:
	 	 	 	 
	 

	 	 

	 	 

DEBTORS:

 

			
	 

	 	 

			
	 

	 	 

	 	 	 	 	 
	ADMINISTRATIVE AGENT:

CITIBANK, N.A, as Administrative Agent

 	 
	By:  	 	 
	 	Authorized Officer 	 
	 	 	 

 

 

EXHIBIT G

COUNTERPARTY DAILY REPORT

As of [Date]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COUNTERPARTY	 	COMMODITY	 	 	PHY	 	 	OTC	 	 	DELIVERY	 	 	TRADE	 	 	BUY SELL	 	 	MONTHLY	 	 	VALUATION	 	 	PREMIUM	 	 	STRIKE	 	 	 	 
	CD	 	CD	 	 	FIN	 	 	TRADE SEQ	 	 	PERIOD	 	 	DT	 	 	CD	 	 	DAILY CD	 	 	PR	 	 	PR	 	 	PR	 	 	CURVE NM	 
	Bank I
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bank II
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bank III
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

The Other Present Value Obligations Amount is $________________.

The aggregate amount referred to in clause (ii) of the definition of Aggregate Net MTM Exposure set forth in the Credit Agreement to which this
report pertains is $________________.

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 			 	CALL PUT	 	 	TRADE TYPE	 	 	CURVE TYPE	 	 	CURRENCY	 	 	PRICE UOM	 	 	UOM	 	 	RISK MANAGER	 	 	STRATEGY	 
	 		QTY	 	CD	 	 	CD	 	 	CD	 	 	CD	 	 	CD	 	 	CD	 	 	CD	 	 	DESCR	 
	Bank I
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 1
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 2
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bank II
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 1
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 2
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bank III
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 1
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q. Hedge 2
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
			 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

EXHIBIT H

COMPUTATION AGENT DAILY REPORT

	 	 	 	 	 	 	 	 	 
	Bank	 	Net MTM	 	Is RMT	 	If yes, Has Bank	 	Credit Adjusted
	Code	 	Exposure	 	Exposed to Banks	 	Margined Correctly**	 	Net MTM Exposure
	 	 	A*	 	Yes/No	 	Yes/No	 	B*
	Bank I
	 	$	 	 	 	 	 	$
	Bank Il
	 	$	 	 	 	 	 	$
	Bank III
	 	$	 	 	 	 	 	$
	Bank IV
	 	$	 	 	 	 	 	$
	 	 	 	 	Sum of Credit
Adjusted net MTM Exposure for All Banks	 	$
	 	 	 	 	If (B<0), then do not continue (PV Deficiency does not exist)
	 	 	 	 	Continue with calculation below?	 	 

	 	 	 	 	 	 	 
	Acceptable Credit Support

	 	C	 	 	 $	 
	Aggregate amount referred to in clause (ii) of the definition of Aggregate Net
MTM Exposure set forth in the Credit Agreement to which this report pertains

	 	D
	 	 	 $	
	Aggregate Net MTM Exposure

	 	(B+D–C) = E
	 	 	 $	
	Other Present Value Obligations Amount

	 	F
	 	 	 $	
	Aggregate Net MTM Exposure + Other Present Value Obligations

	 	(E+F) = G
	 	 	 $	
	Present Value

	 	H
	 	 	 $	
	Present Value Ratio

	 	(H/G) = I	 	 	 	 
	 
	 	 	 	 	 	 
	Does a Present Value Deficiency exist?

	 	[0 <I < (1.50 to 1.00)]	 	 	 	 

The following information is required only as each Bank, if any, that has not provided the amount
of collateral required by the ISDA Master Agreement to which such Bank is party;

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Amount of Collateral	 
	Bank	 	Applicable Credit Support	 	Amount of Collateral	 	Provided by	 
	Code	 	Threshold**	 	Required by Bank**	 	Bank**	 
	Bank l

	 	$	 	 	 	 	 
	Bank II

	 	$	 	 	 	 	 
	Bank III

	 	$	 	 	 	 	 
	Bank IV

	 	$	 	 	 	 	 

 

			
	*	 	Amounts in parentheses are negative

 

 

 

			
	**	 	Provided by Collateral Agent as to any Bank that has not provided the amount of collateral
required by the ISDA Master Agreement to which such Bank is a party. The Computation Agent may
assume that each Bank is correctly margined, except to the extent notified otherwise pursuant to
the last sentence of Section 7.1 of the Credit Agreement to which this report pertains.

 

 

EXHIBIT I

FORM OF ACCEPTABLE LETTER OF CREDIT

	Beneficiary:  	 	Calyon New York Branch

as Collateral Agent

1301 Avenue of the Americas

New York, New York 10019

Attn: Gener David

Telephone: 212-261-7411

Fax: 212-917-5440

Applicant:

Williams Production RMT Company (“RMT”)

One Williams Center, Suite 5000

Tulsa, Oklahoma 74172

Effective Date: ____________

Expiry Date:    ________________ (subject to extension as set forth herein)

 

 

We hereby issue our Irrevocable Letter of Credit Number ___________ (this “Letter of Credit”), in
favor of the Beneficiary as Collateral Agent under the Credit Agreement dated as of February 23,
2007 among RMT, Williams Production Company, LLC, Calyon New York Branch, Citibank, N.A. and
_________, as amended or otherwise modified from time to time (the “Credit Agreement”). This
Letter of Credit is issued for the account of the Applicant named above for the benefit of the
Beneficiary. This Letter of Credit is available at sight in one or more drawings for up to an
aggregate amount not to exceed the Maximum Credit Amount (as herein defined) against presentation
of a sight draft and a certificate in the form of Annex A hereto to [name of issuing bank] (the
“Issuing Bank”) at [New York address of issuing bank] (the “Location”) on any Business Day
(as herein defined) on or prior to the Expiry Date. Partial drawings are permitted.

The “Maximum Credit Amount” is __________________________ United States Dollars (U.S.
$__________________________). A “Business Day” is any day other than a Saturday, Sunday or
any other
day which is a legal holiday or a day on which banking institutions are permitted to be closed in
New York City.

This Letter of Credit expires at the close of business at the Location on the Expiry Date, but such
Expiry Date shall be automatically extended for a period of one year from the present or any future
Expiry Date, unless you receive notice from the Issuing Bank at least twenty (20) days prior to
such Expiry Date that the Issuing Bank elected not to further extend this Letter of Credit.

We hereby engage with you that all documents drawn under and in compliance with the terms of this
Letter of Credit will be duly honored. This Letter of Credit is subject to the International
Standby Practices (ISP98). This Letter of Credit shall be deemed to be made under the laws of the
State of New York, including Article 5 of the Uniform Commercial Code, and shall, as to matters not
governed by the International Standby Practices (ISP98), be governed by and construed in accordance
with the laws of the State of New York, excluding any choice of law provisions or conflict of law
principles which would require reference to the laws of any other jurisdiction.

This Letter of Credit is transferrable in its entirety (but not in part) at any time, and from time
to time, to any entity that is then the “Collateral Agent” under the Credit Agreement.

Regards,

[Name of Issuing Bank]

______________________________

Authorized Bank Representative

 

 

ANNEX A TO LETTER OF CREDIT NO. __________________________

FORM OF DRAW CERTIFICATE

                     ________________, _____

[Name and address of Issuing Bank]

     re:  Your Irrevocable Letter of Credit No. ____________ (the “Letter of Credit”)

Ladies and Gentlemen:

The undersigned is the Collateral Agent referred to in the Letter of Credit and is making a drawing
under the Letter of Credit in the amount of U.S. $____________ (the “Drawing Amount”).

[choose only one of the following paragraphs:]

[The undersigned hereby certifies that: (a) the aggregate amount of Obligations is U.S.$_________,
(b) the Drawing Amount does not exceed the aggregate amount of the Obligations and (c) the sum of
the Drawing Amount plus all prior Drawing Amounts previously paid by the Issuing Bank under
the Letter of Credit does not exceed the Maximum Credit Amount.]

[The undersigned hereby certifies that: (a) fewer than twenty (20) days remain prior to the Expiry
Date of the Letter of Credit, and (b) the sum of the Drawing Amount plus all prior Drawing
Amounts previously paid by the Issuing Bank under the Letter of Credit does not exceed the Maximum
Credit Amount.]

 

 

[The undersigned hereby certifies that: (a) the Administrative Agent has notified the undersigned
that the senior unsecured long-term Dollar-denominated debt of the Issuing Bank is rated lower than
A by S&P or is rated lower than A2 by Moody’s or that either S&P or Moody’s has no rating for any
such debt of the Issuing Bank, and (b) the sum of the Drawing Amount plus all prior Drawing
Amounts previously paid by the Issuing Bank under the Letter of Credit does not exceed the Maximum
Credit Amount]

Capitalized terms used in this Draw Certificate have the meanings given such terms in the Letter of
Credit or in the Credit Agreement referred to in the Letter of Credit.

Payment of the Drawing Amount should be made to the undersigned as follows:

__________________________________ [payment directly by wire to New York account].

	 	 	 	 	 
	 	 [Name of Collateral Agent],

               as Collateral Agent

BY:

TITLE:

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

EXHIBIT J

NEW BANK AGREEMENT

     This New Bank Agreement dated as of ___________________ (this “Agreement”) is by and among
(i) Williams Production RMT Company, a Delaware corporation the (“Counterparty”), and (ii)
__________________ (“New Bank).

Preliminary Statements

     A. Pursuant to Section 2.8 of the Credit Agreement dated as of February 23, 2007 among the
Counterparty, Williams Production Company, LLC, Citibank, N.A., Calyon and _____ [, as amended]
(the “Credit Agreement”, terms used herein that are defined therein and not defined herein
are used herein as therein defined), the Counterparty has the right, subject to the terms and
conditions thereof, to add to the Credit Agreement as Banks one or more Persons.

     B. The Counterparty desires to add the New Bank to the Credit Agreement as a Bank, and
the New Bank desires to be so added.

     Accordingly, the parties hereto agree as follows:

     Section 1. Addition of New Bank. Pursuant to Section 2.8 of the Credit Agreement, the New
Bank is hereby added to the Credit Agreement as a Bank. The New Bank
specifies as its initial
address for notices the following:

	 	 	 	 	 

	 

	 	Address:
	 	 
	 

	 	Attention:
	 	 
	 

	 	Telecopy:
	 	 
	 

	 	Email address:
	 	 

     The New Bank (i) confirms that it has received a copy of the Credit Agreement, together with copies
of such financial statements and such other documents and information as it has deemed appropriate
to make its own credit analysis and its own decision to enter into this Agreement and to agree to
the various matters set forth herein and (ii) agrees that it will perform in accordance with their
terms all of the obligations which by the terms of the Credit Documents are required to be
performed by it as a Bank.

     Section 2. Appointment of Agents. The New Bank hereby appoints and authorizes the
Administrative Agent, the Computation Agent, the PV Determination Agent and the Collateral Agent to
take such action as Administrative Agent, Computation Agent, PV Determination Agent and Collateral
Agent, respectively, on its behalf and to exercise such powers and discretion under the Credit
Documents as are delegated to the Administrative Agent, the Computation Agent, the PV Determination
Agent and the Collateral Agent, respectively, by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto.

     Section 3. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York.

     Section 4. Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed

 

 

shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement.

     Section 5. Bank Decisions. The New Bank acknowledges that it has, independently and without
reliance upon any Agent, the Joint Lead Arrangers or any Bank and based on such financial
statements and such other documents and information as it has deemed appropriate, made its own
credit analysis and its own decision to enter into this Agreement and to agree to the various
matters set forth herein. The New Bank also agrees that it will, independently and without reliance
upon any Agent, the Joint Lead Arrangers or any other Bank and based on such documents and
information as it shall deem appropriate at the time, continue to make its own decisions in taking
or not taking action under the Credit Documents.

     Section 6. Representations and Warranties. The New Bank represents and warrants to the
Counterparty, each Agent and each Bank that its senior unsecured long-term Dollar-denominated debt
or deposit obligations are rated at least BBB by S&P and Baa2 by Moody’s, determined consistent
with Section 1.5 of the Credit Agreement. Each party hereto represents and warrants to each other,
each Agent and each Bank as follows (except that the representation in clause (e) below is made
only by the Counterparty and not the New Bank):

          (a) Attached hereto (i) as Attachment A is a true and correct copy of an ISDA master agreement
executed by the Counterparty and the Bank (the “Executed Master Agreement”) and (ii) as
Attachment B is a list of all differences between the Executed Master Agreement and Exhibit E to
the Credit Agreement.

          (b) The Executed Master Agreement is in substantially the form of Exhibit E to the Credit
Agreement.

          (c) The execution, delivery and performance by such party of this Agreement and the Executed Master
Agreement are within such party’s corporate powers, have been duly authorized by all necessary
corporate action of such party, require, in respect of such party, no action by or in respect of,
or filing with, any governmental body, agency or official and do not contravene, or constitute a
default under, any provision of law or regulation applicable to such party or the charter or bylaws
of such party or any judgment, injunction, order, decree or agreement binding upon such party.

          (d) This Agreement and the Executed Master Agreement are legal, valid and binding obligations of
such party enforceable against such party in accordance with their respective terms, except as the
enforceability thereof may be limited by the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights generally and by general
principles of equity.

          (e) After giving effect to this Agreement and all other New Bank Agreements, no more than ten Banks
will be party to the Credit Agreement.

     Section 7. Default. Without limiting any other event that may constitute an Event of
Default, in the event any representation or warranty of the Counterparty set forth herein shall
prove to have been incorrect in any material respect when made, such event shall constitute an
“Event of Default” under the Credit Agreement.

     Section 8. Expenses. The Counterparty agrees to pay on demand all reasonable out-of- pocket
costs and expenses of the Administrative Agent in connection with the preparation, negotiation,
execution and delivery of this Agreement and the Executed Master Agreement, including, without

 

 

limitation, the reasonable fees and out-of-pocket expenses of external counsel for the
Administrative Agent with respect thereto.

     Section 9. Effectiveness. This Agreement shall become effective as of the date on which the
Administrative Agent shall have received counterparts of this Agreement executed by the
Counterparty and the New Bank.

     Section 10. Amendments. This Agreement may not be amended or modified, except in accordance
with Section 8.1 of the Credit Agreement.

     Section 11. Reliance. This Agreement is intended for the benefit of and may be relied on by
the parties hereto, the Banks, the Agents and the Joint Lead Arrangers.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	COUNTERPARTY:

WILLIAMS PRODUCTION RMT COMPANY

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

	 	 	 	 	 
	NEW BANK:

 	 
	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

	 	 	 	 	 
	Receipt acknowledged this _____ day of

___, _______________:

ADMINISTRATIVE AGENT:

CITIBANK, N.A., as Administrative Agent

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

 

 

	 	 	 	 	 
	COMPUTATION AGENT:

CITIGROUP ENERGY INC.

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

 

 

	 	 	 	 	 

Attachment A

[Exact
copy of Executed Master Agreements]

 

 

Attachment B

[List of differences between Executed Master Agreement and Credit Agreement Exhibit E]

 

 

EXHIBIT K

GUARANTY

Guarantee of Obligations of [Name of Designated Affiliate]

by [Name of Bank or parent of Bank]

Guarantee, dated as of [                    ], of [Name of Bank or parent of Bank], (the “Guarantor”), in
favor of Williams Production RMT Company, a Delaware corporation (the
“Counterparty”).
Capitalized terms used herein that are not defined herein, are not defined in the Agreement and are
defined in the Credit Agreement dated as of February 23, 2007 among the Counterparty,                      and others,
as amended or otherwise modified from time to time, are used herein as therein defined.

1. Guarantee. In order to induce the Counterparty to enter into an ISDA Master Agreement, dated as
of the date hereof (the “Agreement”), with the Designated Affiliate of [a subsidiary of]
the Guarantor, [Name of Designated Affiliate] (“Primary Obligor”), the Guarantor absolutely
and unconditionally guarantees to the Counterparty, its successors and permitted assigns, as
primary obligor and not as a surety, the prompt payment of all amounts payable by Primary Obligor
under the Agreement, whether due or to become due, secured or unsecured, joint or several together
with any and all expenses referred to under Section 11 of the Agreement incurred by Counterparty
in enforcing Counterparty’s rights under this Guarantee (the “Obligations”) all without
regard to any counterclaim, set-off, deduction or defense of any kind which Primary Obligor or the
Guarantor may have or assert, and without abatement, suspension, deferment or diminution on account
of any event or condition whatsoever; provided however, that Guarantor’s obligations under this
Guarantee shall be subject to Primary Obligor’s defenses and rights to set-off, counterclaim or
withhold payment as provided in the Agreement. Any capitalized term used herein and not otherwise
defined herein shall have the meaning assigned to it in the Agreement.

2. Nature of Guarantee. This Guarantee is a guarantee of payment and not of collection. The
Counterparty shall not be obligated, as a condition precedent to performance by the Guarantor
hereunder, to file any claim relating to the Obligations in the event that Primary Obligor becomes
subject to a bankruptcy, reorganization or similar proceeding, and the failure of the Counterparty
to file a claim shall not affect the Guarantor’s obligations hereunder. This Guarantee shall
continue to be effective or be reinstated if any payment to the Counterparty by Primary Obligor on
account of any Obligation is returned to Primary Obligor or is rescinded upon the insolvency,
bankruptcy or reorganization of Primary Obligor.

3. Consents, Waivers and Renewals. The Guarantor agrees that the Counterparty may at any time and
from time to time, either before or after the maturity thereof, without notice to or further
consent of the Guarantor, change the time, manner or place of payment or any other term of, any
Obligation, exchange, release, nonperfection or surrender any collateral for, or renew or change
any term of any of the Obligations owing to it, and may also enter into a written agreement with
Primary Obligor or with any other party to the Agreement or person liable on any Obligation, or
interested therein, for the extension, renewal, payment, compromise, modification, waiver,
discharge or release thereof, in whole or in part, without impairing or affecting this Guarantee.
The Obligations of the Guarantor under this Guarantee are unconditional, irrespective of the value,
genuineness,
validity, or enforceability of the Obligations, any law, regulation or order of any jurisdiction or
any other event affecting the term of any Obligation or of Counterparty’s rights with respect
thereto and, to the fullest extent permitted by applicable law, any other
circumstance which might constitute a defense available to, or a discharge of, the Guarantor,
including (a) any law, rule or policy that is now or hereafter promulgated by any governmental
authority (including any

 

 

central bank) or regulatory body that may adversely affect Counterparty’s ability or obligation to
make or receive such payments, (b) any nationalization, expropriation, war, riot, civil commotion
or other similar event, (c) any inability to convert any currency into the currency of payment of
such obligation, (d) any inability to transfer funds in the currency of payment of such obligation
to the place of payment therefor. The Guarantor agrees that the Counterparty may have recourse to
the Guarantor for payment of any of the Obligations, whether or not the Counterparty has proceeded
against any collateral security or any obligor principally or secondarily obligated for any
Obligation. The Guarantor waives demands, promptness, diligence and all notices that may be
required by law or to perfect the Counterparty’s rights hereunder except notice to the Guarantor of
a default by Primary Obligor under the Agreement, provided, however, that any delay in the delivery
of notice shall in no way invalidate the enforceability of this Guarantee. No failure, delay or
single or partial exercise by the Counterparty of its rights or remedies hereunder shall operate as
a waiver of such rights or remedies. All rights and remedies hereunder or allowed by law shall be
cumulative and exercisable from time to time.

4. Representations and Warranties. The Guarantor hereby represents and warrants that:

          (i) the Guarantor is duly organized, validly existing and in good standing under the laws of the
State of Delaware;

          (ii) the Guarantor has the requisite corporate power and authority to issue this Guarantee and to
perform its obligations hereunder, and has duly authorized, executed and delivered this Guarantee;

          (iii) the Guarantor is not required to obtain any authorization, consent, approval, exemption or
license from, or to file any registration with, any government authority as a condition to the
validity of, or to the execution, delivery or performance of, this Guarantee;

          (iv) as of the date of this Guarantee, there is no action, suit or proceeding pending or threatened
against the Guarantor before any court or arbitrator or any governmental body, agency or official
in which there is a reasonable possibility of an adverse decision which could affect, in a
materially adverse manner, the ability of the Guarantor to perform any of its obligations under, or
which in any manner questions the validity of, this Guarantee;

          (v) the execution, delivery and performance of this Guarantee by the Guarantor does not contravene
or constitute a default under any statute, regulation or rule of any governmental authority or
under any provision of the Guarantor’s certificate of incorporation or by-laws or any contractual
restriction binding on the Guarantor; and

          (vi) this Guarantee constitutes the legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms, subject to the effect of any bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors’ rights generally, and to general
principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law).

5. Subrogation. Upon payment by Guarantor of any sums to Counterparty under this Guarantee, all
rights of Guarantor against Primary Obligor arising as a result thereof by way of right of
subrogation or otherwise shall in all respects be subordinate and junior in right of payment to the
prior indefeasible payment in full of all the obligations of Primary Obligor under the Agreement,
including all Transactions then in effect between Primary Obligor and Counterparty.

6. Termination. This Guarantee is a continuing guarantee and shall remain in full force and effect
until such time as it may be revoked by the Guarantor by notice given to the Counterparty, such
notice to

 

 

be deemed effective upon receipt thereof by the Counterparty or at such later date as may be
specified in such notice; provided, however, that such revocation shall not limit or terminate this
Guarantee in respect of any Transaction effected under the Agreement which shall have been entered
into prior to the effectiveness of such revocation. Notwithstanding anything to the contrary in
this Paragraph 6, this Guarantee shall terminate, and Guarantor shall be released from all of the
Obligations hereunder with respect to any Transaction(s), immediately upon the transfer or
assignment of such Transaction(s) to an entity which is not an Affiliate of Primary Obligor (as
such term is defined in Section 14 of the Agreement), if such transfer or assignment is completed
in accordance with the provisions of Section 7 of the Agreement.

7. Notices. Any notice or communication required or permitted to be made hereunder shall be made to
the appropriate addresses set forth below (or to such other addresses as either party may designate
by notice to the other party):

	 	 	 	 	 

	 

	 	If to the Counterparty:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	If to the Guarantor	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

8. GOVERNING LAW; JURISDICTION. This Guarantee shall be governed by and construed in accordance
with the laws of the State of New York. The Guarantor hereby irrevocably consents to, for the
purposes of any proceeding arising out of this Guarantee, the exclusive jurisdiction of the courts
of the State of New York and the United States District Court located in the borough of Manhattan
in New York City.

9. Waiver of Immunity. To the extent that the Guarantor has or hereafter may acquire any immunity
from jurisdiction of any court or from any legal process (whether through service or notice,
attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect
to the Guarantor or the Guarantor’s property, the Guarantor hereby irrevocably waives such immunity
in respect of the Guarantor’s obligations under this Guarantee.

10. Waiver of Jury Trial. The Guarantor hereby irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or
relating to this Guarantee or the negotiation, administration or enforcement hereof.

11. Miscellaneous. Each reference herein to the Guarantor, Counterparty or Primary Obligor shall be
deemed to include their respective successors and assigns. The provisions hereof shall inure in
favor of each such successor or assign. This Guarantee (i) shall supersede any prior or
contemporaneous representations, statements or agreements, oral or written, made by or between the
parties with regard to the subject matter hereof, (ii) may be amended only by a written instrument
executed by the Guarantor and Counterparty and (iii) may not be assigned by either party without
the prior written consent of the other party.

 

 

12. Limitation of Liability. Notwithstanding anything to the contrary contained herein or in the
Agreement, whether express or implied, Guarantor shall in no event be required to pay or be liable
to the
Counterparty for any consequential, indirect or punitive damages, opportunity costs or lost
profits.

IN WITNESS WHEREOF, the undersigned has executed this Guarantee as of the date first above
written.

[NAME OF BANK OR PARENT OF BANK]

	 	 	 	 	 

	By:  	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	Date: 	 	 

 

 

EXHIBIT L

BANK IDENTIFICATION REPORT

[Date]

[Name and address

          of Collateral Agent]

	Re: 	 	 Credit Agreement dated as of February 23, 2007 among

 Williams Production RMT Company, Citibank,
N.A.,

Calyon and others (the “Credit Agreement”)

Ladies and Gentlemen:

     This is the daily report referred to in Section 5.1(b)(xi) of the Credit Agreement for __________,
20___. Reference is made to the report for this date in the form of Exhibit G to the Credit Agreement
delivered to the Computation Agent pursuant to Section 5.1(b)(x) of the Credit Agreement (“Exhibit
G Report”). For each Qualifying Hedge referred to in the Exhibit G Report, the name of the Bank
party thereto is as follows:

	 	 	 
	Bank referenced in Exhibit G Report	 	Actual Bank Name
	Bank I

	 	____________________
	 
	 	 
	Bank II

	 	____________________
	 
	 	 
	Bank III

	 	____________________
	 
	 	 
	____________________

	 	____________________

	 	 	 	 	 
	 	Very truly yours,

WILLIAMS PRODUCTION RMT COMPANY

 	 
	 	By:  	 	 
	 	 	Name: 	 	 
	 	 	Title: 	 	 

 

 

	 	 	 	 	 

EXHIBIT M

PRE-APPROVED DELIVERY POINTS

	 	 	 

	NGF_NGI_MICHCON

	 	Natural Gas Intelligence Michigan Consolidated Gas Company
	NGF_NGI_CHICAGO_CG

	 	Natural Gas Intelligence Chicago City Gates
	NGF_NGI_PGE_CG

	 	Natural Gas Intelligence PG&E Citygate (Pacific Gas & Electric)
	NGF_NYM_NG

	 	NYMEX Henry Hub
	NGF_CGPR_EMPRESS 1a_USD

	 	Canadian Gas Price Reporter Empress (Daily Differential to AECO) — (Denominated in US Dollars)
	NGF_CGPR_EMPRESS 1a_CAD

	 	Canadian Gas Price Reporter Empress (Daily Differential to AECO) — (Denominated in Canadian Dollars)
	NGF_CGPR_EMPRESS_FOM_CAD

	 	Monthly Canadian Gas Price Reporter Empress Denominated in Canadian Dollars
	NGF_NGI_SOCAL_BORD_AVG

	 	Natural Gas Intelligence Socal Border
	NGF_CGPR_AECO_7a

	 	Monthly Canadian Gas Price Reporter AECO 7a (Denominated in US Dollars)
	NGF_CGPR_AECO_5a

	 	Daily Canadian Gas Price Reporter AECO 5a (Denominated in US Dollars)
	NGF_CGPR-_AECO_2a

	 	Daily Canadian Gas Price Reporter AECO 2a (Denominated in US Dollars)
	NGF_CGPR_AECO_7a_CAD

	 	Monthly Canadian Gas Price Reporter AECO 7a (Denominated in Canadian Dollars)
	NGF_CGPR_AECC_5a_CAD

	 	Daily Canadian Gas Price Reporter AECO 5a (Denominated in Canadian Dollars)
	NGF_CGPR_AECO_2a_CAD

	 	Daily Canadian Gas Price Reporter AECO 2a (Denominated in Canadian Dollars)
	NGF_NGI_MALIN

	 	Natural Gas Intelligence PG&E, Malin
	NGF_IF_ANR_LA

	 	Inside FERC ANR, Louisiana
	NGF_IF_ANR_OK

	 	Inside FERC ANR, Oklahmoa
	NGF_IF_CGULF_LA

	 	Inside FERC Columbian Gulf, LA
	NGF_IF_CIG_RM

	 	Inside FERC CIG Rocky Mountains
	NGF_IF_ELP_PERM

	 	Inside FERC El Paso, Permian Basin
	NGF_IF_ELP_SJ

	 	Inside FERC El Paso, San Juan
	NGF_IF_HENRY_HUB

	 	Inside FERC Henry Hub
	NGF_IF_HSC

	 	Inside FERC Houston Ship Channel
	NGF_IF_NGPL_LA

	 	Inside FERC Natural Gas Pipeline, Louisiana
	NGF_IF_NGPL_TXOK

	 	Inside FERC Natural Gas Pipeline, TX, OK
	NGF_IF_NNG_DEMARC

	 	Inside FERC Northern Natural Gas Demarcation
	NGF_IF_NNG_VENTURA

	 	Inside FERC Northern Natural Gas, Ventura
	NGF_IF_NWPL_CB

	 	Inside FERC Northwest Pipeline Canadian Border (Sumas)
	NGF_IF_NWPL_RM

	 	Inside FERC Northwest Pipeline Rocky Mountains
	NGF_IF_PEPL_TXOK

	 	Inside FERC Panhandle Eastern Pipeline, TX OK
	NGF_IF_SONAT_LA

	 	Inside FERC Southern Natural Gas, LA
	NGF_IF_TETCO_ELA

	 	Inside FERC Texas Eastern Transmission Company, Eastern Louisiana
	NGF_IF_TETCO_M3

	 	Inside FERC Texas Eastern Transmission Company, Zone M3
	NGF_IF_TETCO_WLA

	 	Inside FERC Texas Eastern Transmission Company, Western Louisiana

 

 

	 	 	 

	NGF_IF_TGT_ZSL

	 	Inside FERC Texas Gas Transmission Zone South Louisiana
	NGF_IF_TRCO_Z2

	 	Inside FERC Transcontinental Pipeline Zone 2
	NGF_IF_TRCO_Z3

	 	Inside FERC Transcontinental Pipeline Zone 3
	NGF_IF_TRCO_Z4

	 	Inside FERC Transcontinental Pipeline Zone 4
	NGF_IF_TRCO_Z6NNY

	 	Inside FERC Transcontinental Pipeline Zone 6 Non New York
	NGF_IF_WAHA

	 	Inside FERC Waha (West Texas)
	NGF_IF_CGT_APP

	 	Inside FERC Colombia Gulf Transmission Appalacia
	NGF_IF_CHIC_CG

	 	Inside FERC Chicago City Gates (Inside FERC)
	NGF_IF_DAWN

	 	Inside FERC Dawn, Ontario
	NGF_IF_DOM_APP

	 	Inside FERC Dominion, Appalacia
	NGF_IF_FGT_Z2

	 	Inside FERC Florida Gas Transmission Z2
	NGF_IF_FGT_Z3

	 	Inside FERC Florida Gas Transmission Z3
	NGF_IF_MICHCON_CG

	 	Inside FERC Michigan Consolidated Gas Company (Inside FERC)
	NGF_IF_PGE_MALIN

	 	Inside FERC PG&E Malin
	NGF_IF_TETCO_STX

	 	Inside FERC Texas Eastern Transmission Company, South Texas
	NGF_IF_TGT_Z1

	 	Inside FERC Texas Gas Transmission Zone 1
	NGF_IF_TRCO_Z6NY

	 	Inside FERC Transcontinental Pipeline Zone 6 New York
	NGF_IF_TRWEST_PERM

	 	Inside FERC Transwestern Permian (Snead)
	NGF_IF_TENN_LA_ 500

	 	Inside FERC Tennessee 500 Leg
	NGF_GD_TENN_LA_500

	 	Gas Daily Tennessee 500 Leg
	NGF_IF_NGPL_MIDC

	 	Inside FERC Natural Gas Pipeline, Midcontinent

 

 

EXHIBIT N

PRE-APPROVED HEDGE TYPES

Nymex swaps

Basis swaps

Nymex options (Collars, Calls, Puts)

Fixed price at location options (Collars, Calls, Puts)

Gas Daily Swing swaps

Gas Daily Options

Index Swaps (financial and physical)

NYMEX Swaptions (Monthly, Quarterly, Yearly)

Index Location Swaptions (Monthly, Quarterly, Yearly)

NYMEX Digital Options

Index Floating Strike Options

Physical gas (consistent with any of the trade types above)

Crude Swaps (financial only)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00179-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00179-of-00352.parquet"}]]