Document:

EX-10.2

U.S. $200,000,000

FIVE YEAR CREDIT AGREEMENT

Dated as of September 20, 2005

Among

THE WILLIAMS COMPANIES, INC.,

as Borrower,

and

THE INITIAL LENDERS NAMED HEREIN,

as Initial Lenders,

and

THE INITIAL ISSUING BANKS NAMED HEREIN,

as Initial Issuing Banks,

and

CITIBANK, N.A.,

as Agent.

1

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

	 	 	 	 	 	 	 	 	 
	Section 1.01.
	 	Certain Defined Terms
	 	 	1	 
	Section 1.02.
	 	Computation of Time Periods
	 	 	14	 
	Section 1.03.
	 	Accounting Terms
	 	 	14	 

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES AND LETTERS OF CREDIT

	 	 	 	 	 	 	 	 	 
	Section 2.01.
	 	The Revolving Credit Advances and Letters of Credit
	 	 	14	 
	Section 2.02.
	 	Making the Revolving Credit Advances
	 	 	15	 
	Section 2.03.
	 	Issuance of and Drawings and Reimbursement Under Letters of Credit
	 	 	16	 
	Section 2.04.
	 	Fees
	 	 	18	 
	Section 2.05.
	 	Repayment of Revolving Credit Advances
	 	 	18	 
	Section 2.06.
	 	Interest on Revolving Credit Advances
	 	 	19	 
	Section 2.07.
	 	Interest Rate Determination
	 	 	19	 
	Section 2.08.
	 	Optional Conversion of Revolving Credit Advances
	 	 	21	 
	Section 2.09.
	 	Prepayments of Revolving Credit Advances
	 	 	21	 
	Section 2.10.
	 	Increased Costs
	 	 	21	 
	Section 2.11.
	 	Illegality
	 	 	22	 
	Section 2.12.
	 	Payments and Computations
	 	 	22	 
	Section 2.13.
	 	Sharing of Payments, Etc
	 	 	23	 
	Section 2.14.
	 	Evidence of Debt
	 	 	24	 
	Section 2.15.
	 	Use of Proceeds
	 	 	24	 
	Section 2.16.
	 	Additional Interest on Eurodollar Rate Advances
	 	 	24	 

ARTICLE III

CONDITIONS TO EFFECTIVENESS AND LENDING

	 	 	 	Section 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03 25	 

	 	 	 	Section 3.02. Conditions Precedent to Each Revolving Credit Borrowing and Letter of
Credit Issuance 26	 

	 	 	 	Section 3.03. Determinations Under Sections 3.01 26	 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

	 	 	 	Section 4.01. Representations and Warranties of the Borrower 27	 

ARTICLE V

COVENANTS OF THE BORROWER

	 	 	 	 	 	 	 	 	 
	Section 5.01.
	 	Written Statement to Agent
	 	 	29	 
	Section 5.02.
	 	Commission Reports; Financial Statements
	 	 	29	 
	Section 5.03.
	 	Limitation On Liens
	 	 	30	 
	Section 5.04.
	 	Limitation On Mergers, Consolidations And Sales Of Assets
	 	 	30	 

ARTICLE VI

EVENTS OF DEFAULT

	 	 	 	 	 	 	 	 	 
	Section 6.01.
	 	Events of Default
	 	 	30	 
	Section 6.02.
	 	Notice of Default or Event of Default
	 	 	32	 
	Section 6.03.
	 	Actions in Respect of the Letters of Credit upon Default
	 	 	32	 
	Section 6.04.
	 	Waiver Of Existing Defaults
	 	 	32	 

ARTICLE VII

THE AGENT

	 	 	 	 	 	 	 	 	 
	Section 7.01.
	 	Authorization and Action
	 	 	32	 
	Section 7.02.
	 	Agent’s Reliance, Etc
	 	 	33	 
	Section 7.03.
	 	Citibank and Affiliates
	 	 	33	 
	Section 7.04.
	 	Lender Credit Decision
	 	 	33	 
	Section 7.05.
	 	Indemnification
	 	 	33	 
	Section 7.06.
	 	Successor Agent
	 	 	34	 

ARTICLE VIII

AMENDMENTS

	 	 	 	 	 	 	 	 	 
	Section 8.01.
	 	Amendments, Etc. With Consent of Lenders
	 	 	35	 
	Section 8.02.
	 	Amendments Without Consent of Lenders
	 	 	35	 
	Section 8.03.
	 	Documents to Be Given to Agent
	 	 	36	 

ARTICLE IX

MISCELLANEOUS

	 	 	 	Section 9.01. Notices, Etc 36	 

	 	 	 	Section 9.02. Powers and Remedies Cumulative; Delay or Omission Not Waiver of
Default 37	 

	 	 	 	 	 	 	 	 	 
	Section 9.03.
	 	Costs and Expenses
	 	 	37	 
	Section 9.04.
	 	Waiver of Set-off
	 	 	38	 
	Section 9.05.
	 	Binding Effect
	 	 	38	 
	Section 9.06.
	 	Assignments and Participations
	 	 	38	 
	Section 9.07.
	 	Confidentiality
	 	 	40	 
	Section 9.08.
	 	Governing Law
	 	 	41	 
	Section 9.09.
	 	Execution in Counterparts
	 	 	41	 
	Section 9.10.
	 	Jurisdiction, Etc
	 	 	41	 
	Section 9.11.
	 	Final Agreement
	 	 	42	 
	Section 9.12.
	 	Judgment
	 	 	42	 
	Section 9.13.
	 	No Liability of the Issuing Banks
	 	 	42	 
	Section 9.14.
	 	Waiver of Jury Trial
	 	 	42	 

	 	 	 	Section 9.15. Officers’ Certificates and Opinions of Counsel; Statements to Be
Contained Therein 43	 

	 	 	 	 	 
	Schedules

	 	

	 	

	 

	 	

	 	

	 
	 	 	 	 
	Schedule I – List of Applicable Lending Offices
	 	 
	 
	 	 	 	 
	Exhibits

	 	

	 	

	 

	 	

	 	

	Exhibit A

Exhibit B

Exhibit C

Exhibit D-1

Exhibit D-2

Exhibit E

	 	-

-

-

-

-

-
	 	Form of Revolving Credit Note

Form of Notice of Revolving Credit Borrowing

Form of Assignment and Acceptance

Form of Opinion of Outside Counsel for the Borrower

Form of Opinion of General Counsel of the Borrower

Form of Letter of Credit

2

FIVE YEAR CREDIT AGREEMENT

Dated as of September 20, 2005

THE WILLIAMS COMPANIES, INC., a Delaware corporation (the “Borrower”), the banks,
financial institutions and other institutional lenders (the “Initial Lenders”) and issuers
of letters of credit (the “Initial Issuing Banks”) listed on the signature pages hereof and
CITIBANK, N.A. (“Citibank”), as administrative agent and as paying agent (the
“Agent”) for the Lenders and Issuing Banks (each as hereinafter defined) agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.01. 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):

“Advance” means a Revolving Credit Advance.

“Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For purposes of this definition, “control,” as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a
Person will be deemed to be control. For purposes of this definition, the terms “controlling”,
“controlled by” and “under common control with” have correlative meanings.

“Agent” has the meaning specified in the preamble hereto.

“Agent’s Account” means the account of the Agent maintained by the Agent at Citibank
at its office at Two Penns Way, Suite 110, New Castle, Delaware 19720, Account No. 40580177,
Attention: Bank Loan Syndications or such other account of the Agent as is designated in writing
from time to time by the Agent to the Borrower and the Lenders for such purpose.

“Agreement” means this Five Year Credit Agreement.

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

“Assignment and Acceptance” means an assignment and acceptance entered into by a
Lender and an Eligible Assignee, and accepted by the Agent, in substantially the form of Exhibit C
hereto.

“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 (assuming compliance at such time
with all conditions to drawing).

“Base Rate” means an 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 one percent per annum above the Federal Funds Rate.

“Base Rate Advance” means a Revolving Credit Advance that bears interest as provided
in Section 2.06(a)(i).

“beneficial owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5
under the Exchange Act, except that in calculating the beneficial ownership of any particular
“person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be
deemed to have beneficial ownership of all securities that such “person” has the right to acquire
by conversion or exercise of other securities, whether such right is currently exercisable or is
exercisable only upon the occurrence of a subsequent condition. The terms “beneficially
owns” and “beneficially owned” have a corresponding meaning.

“Board of Directors” means:

(1) with respect to a corporation, the board of directors of the corporation or any
committee of such board authorized to act on its behalf;

(2) with respect to a partnership, the board of directors of the general partner of the
partnership or any committee of such board authorized to act on its behalf; and

(3) with respect to any other Person, the board or committee of such Person serving a
similar function.

“Borrower” has the meaning specified in the preamble hereto.

“Borrowing” means a Revolving Credit Borrowing.

“Business Day” means a day of the year on which banks are not required or authorized
by law to close in New York City and, if the applicable Business Day relates to any Eurodollar Rate
Advance, Specified LIBOR Rate Advance or Facility Fee, on which dealings are carried on in the
London interbank market and banks are open for business in London.

“Capital Stock” means:

(1) in the case of a corporation, corporate stock;

(2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

(3) in the case of a partnership or limited liability company, partnership or membership
interests (whether general or limited); and

(4) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person.

“Citibank” has the meaning specified in the preamble hereto.

“Code” means the United States Internal Revenue Code of 1986, as amended from time to
time, and the regulations promulgated and the rulings issued thereunder.

“Commission” means the Securities and Exchange Commission, created under the Exchange
Act, as from time to time constituted (or its successor).

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

“Commitment Termination Date” means the earlier of (a) the date of termination in
whole of the aggregate Commitments as provided herein and (b) the 25th Business Day
prior to the date specified in clause (a) of the definition of Termination Date.

“Confidential Information” means information that the Borrower or any of its
Subsidiaries or Affiliates (or any agent, officer, director, employee or other representative of
any such Person) furnishes to the Agent or the relevant Lender (or the relevant participant or
sub-participant) in a writing designated as confidential, but does not include any such information
that is or becomes generally available to the public or that is or becomes available to the Agent
or such Lender (or participant or sub-participant) from a source other than the Borrower or any of
its Subsidiaries or Affiliates (or any agent, officer, director, employee or other representative
of any such Person) unless such information has become generally available to the public or such
source as a result of a breach of Section 9.07 by the Agent or a Lender.

“Consolidated” refers to the consolidation of accounts in accordance with GAAP.

“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
directly related to such assets 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.

“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
Section 2.07 or 2.08.

“Default” means any event that is, or with the passage of time or the giving of notice
or both would be, an Event of Default.

“Disclosed Litigation” has the meaning specified in Section 3.01(b).

“Dollars” and the “$” sign each mean lawful money of the United States of
America.

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

“Effective Date” has the meaning specified in Section 3.01.

“Eligible Assignee” means (i) a Lender; (ii) an Affiliate of a Lender; (iii) any
participant to which a Lender has sold a participation, any sub-participant thereof or any owner of
a beneficial interest in the foregoing, if in the case of a participant or a sub-participant the
Borrower consented, at the time of such sale, to such participation or sub-participation, as
applicable, such consent not to be unreasonably withheld or delayed; or (iv) any other Person
approved by the Agent and, unless (a) an Event of Default has occurred and is continuing at the
time any assignment is effected in accordance with Section 9.06 or (b) an assignment has occurred
to a participant described in clause (iii), the Borrower, such approval not to be unreasonably
withheld or delayed; provided, however, that neither the Borrower nor an Affiliate
of the Borrower shall qualify as an Eligible Assignee.

“Eligible Lender” means an Initial Lender, an Initial Issuing Bank or any Eligible
Assignee (other than an Eligible Assignee described in clause (iii) of the definition of Eligible
Assignee).

“Environmental Action” means any action, suit, demand, demand letter, claim, written
notice of non-compliance or written violation, notice of liability or potential liability,
investigation, proceeding, consent order or consent agreement relating to any Environmental Law,
Environmental Permit or Hazardous Materials or arising from alleged injury or threat of injury to
health, safety or the environment, including, without limitation, (a) by any governmental or
regulatory authority for enforcement, cleanup, removal, response, remedial or other actions or
damages and (b) by any governmental or regulatory authority or any third party for damages,
contribution, indemnification, cost recovery, compensation or injunctive relief.

“Environmental Law” means any federal, state, local or foreign statute, law,
ordinance, rule, regulation, code, order, final judgment, decree or written and binding judicial or
agency interpretation thereof relating to pollution or protection of the environment, health,
safety or natural resources, including, without limitation, those relating to the use, handling,
transportation, treatment, storage, disposal, release or discharge of Hazardous Materials.

“Environmental Permit” means any permit, approval, identification number, license or
other authorization required under any Environmental Law.

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

“ERISA Affiliate” means any Person that for purposes of Section 302 and Title IV of
ERISA or for purposes of Section 412 of the Code is a member of the Borrower’s controlled group, or
under common control with the Borrower, within the meaning of Section 414 of the Code.

“ERISA Event” means (a) a “reportable event” described in Section 4043 of ERISA (other
than a “reportable event” (i) described in Section 4043(c)(3) of ERISA, (ii) not subject to the
provision for 30-day notice to the PBGC or (iii) that would not result in a material liability to
the Borrower, any of its Subsidiaries or any ERISA Affiliate), or (b) the incurrence of a material
liability by the Borrower, any of its Subsidiaries or any ERISA Affiliate as a result of the
withdrawal of the Borrower, any of its Subsidiaries or any ERISA Affiliate from a Multiple Employer
Plan during a plan year in which it was a “substantial employer” as defined in Section 4001(a)(2)
of ERISA or by reason of the provisions of Section 4064 of ERISA upon the termination of a Multiple
Employer Plan, or (c) the existence of any “accumulated funding deficiency” or “liquidity
shortfall” (within the meaning of Section 302 of ERISA or Section 412 of the Code), whether or not
waived, or the filing of an application pursuant to Section 412(e) of the Code or Section 304 of
ERISA for any extension of an amortization period, or (d) the provision or filing of a notice of
intent to terminate a Plan other than in a standard termination within the meaning of Section 4041
of ERISA or the treatment of a Plan amendment as a distress termination under Section 4041 of
ERISA, or (e) the institution of proceedings to terminate a Plan by the PBGC, or (f) any other
event or condition which might reasonably be expected to constitute grounds for (x) the termination
of, or the appointment of a trustee to administer, any Plan other than in a standard termination
within the meaning of Section 4041 of ERISA or (y) the imposition of any lien on the assets of the
Borrower, any of its Subsidiaries or any ERISA Affiliate under ERISA, including as a result of the
operation of Section 4069 of ERISA.

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

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

“Eurodollar Rate” means, for any Interest Period for each Eurodollar Rate Advance
comprising part of the same Revolving Credit Borrowing, an interest rate per annum equal to the
rate per annum (rounded upward to the nearest whole multiple of 1/100 of 1% per annum) appearing on
Telerate Page 3750 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 such Interest Period ends on the
date specified in clause (a) of the definition of Termination Date, such interest rate shall be the
rate per annum appearing on the Telerate Page for London interbank offered deposits with a term
equal to the actual number of days from the first day of such Interest Period to the date specified
in clause (a) of the definition of Termination Date (the “Final Interest Period”) or, if
such Final Interest Period does not equal a term appearing on the Telerate Page, such rate per
annum shall be determined by interpolating linearly between (i) the rate for the period appearing
on the Telerate Page that is closest to and greater than the length of such Final Interest Period
and (ii) the rate for the period appearing on the Telerate Page that is closest to and less than
the length of such Final Interest Period) or, if for any reason such rate is not available, the
average (rounded upward to the nearest whole multiple of 1/100 of 1% per annum, if such average is
not such a multiple) of the rate per annum at which deposits in Dollars are offered by the
principal office of each of the Reference Banks in London, England to prime banks in the London
interbank market at 11:00 A.M. (London time) two Business Days before the first day of such
Interest Period in an amount substantially equal to such Revolving Credit Borrowing to be
outstanding during such Interest Period and for a period equal to such Interest Period. If
Telerate Page 3750 is unavailable, the Eurodollar Rate for any Interest Period for each Eurodollar
Rate Advance comprising part of the same Revolving Credit Borrowing shall be determined by the
Agent on the basis of applicable rates furnished to and received by the Agent from the Reference
Banks two Business Days before the first day of such Interest Period, subject,
however, to the provisions of Section 2.07.

“Eurodollar Rate Advance” means a Revolving Credit Advance that bears interest as
provided in Section 2.06(a)(ii).

“Eurodollar Rate Reserve Percentage” for any Interest Period for all Eurodollar Rate
Advances comprising part of the same Borrowing means the reserve percentage applicable two Business
Days before the first day of such Interest Period under regulations issued from time to time by the
Board of Governors of the Federal Reserve System (or any successor) for determining the maximum
reserve requirement (including, without limitation, any emergency, supplemental or other marginal
reserve requirement) for a member bank of the Federal Reserve System in New York City with respect
to liabilities or assets consisting of or including Eurocurrency Liabilities (or with respect to
any other category of liabilities that includes deposits by reference to which the interest rate on
Eurodollar Rate Advances is determined) having a term equal to such Interest Period.

“Events of Default” has the meaning specified in Section 6.01.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Exchange Act Disclosure” has the meaning specified in Section 3.01(b).

“Facility Fee” has the meaning specified in Section 2.04(a).

“Facility Fee Period End Date” means January 1, April 1, July 1 and October 1 of each
year and the date specified in clause (a) of the definition of the Termination Date, commencing on
January 1, 2006; provided that, whenever a Facility Fee Period End Date would otherwise
occur on a day other than a Business Day, such Facility Fee Period End Date shall be deferred to
the next succeeding Business Day; provided, however, that, if such deferral would
cause such Facility Fee Period End Date to occur in the next following calendar month, such
Facility Fee Period End Date shall occur on the next preceding Business Day.

“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal for each day during such period 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 that 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.

“GAAP” means generally accepted accounting principles in the United States as in
effect from time to time.

“Governmental Authority” means any nation or government, any state or other political
subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or
administrative functions of government.

“Hazardous Materials” means (a) petroleum and petroleum products, byproducts or
breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls
and radon gas and (b) any other chemicals, materials or substances designated, classified or
regulated as hazardous or toxic or as a pollutant or contaminant under any Environmental Law.

“Indebtedness” means, with respect to any specified Person, any indebtedness of such
Person which is for money borrowed from others.

“Indemnified Costs” has the meaning specified in Section 7.05.

“Initial Issuing Banks” has the meaning specified in the preamble hereto.

“Initial Lenders” has the meaning specified in the preamble hereto.

“Interest Period” means, for each Eurodollar Rate Advance comprising part of the same
Revolving Credit Borrowing and subject to Section 2.07(c), 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 the 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 so selected by the
Borrower pursuant to the provisions below. The duration of each such Interest Period shall be one,
two, three or six months, as the 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:

(a) the duration of any Interest Period that commences before the Termination Date and
would otherwise end after the date specified in clause (a) of the definition of Termination
Date shall end on such date specified in clause (a) of the definition of Termination Date
and the Eurodollar Rate for such Interest Period shall be determined on the basis of the
actual number of days in such Interest Period;

(b) 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;

(c) 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, however, 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;

(d) the duration of any Interest Period that would otherwise end after the date a
Eurodollar Rate Advance is Converted into a Specified LIBOR Rate Advance shall end on the
date of such Conversion; and

(e) 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.

“Issuing Bank” means each Initial Issuing Bank or any Eligible Assignee to which a
portion of the Letter of Credit Commitment hereunder has been assigned pursuant to Section 9.06 so
long as such Eligible Assignee expressly agrees to perform in accordance with their terms all of
the obligations that by the terms of this Agreement are required to be performed by it as an
Issuing Bank and notifies the Agent of its Applicable Lending Office (which information shall be
recorded by the Agent in the Register), for so long as such Initial Issuing Bank or Eligible
Assignee, as the case may be, shall have a Letter of Credit Commitment.

“L/C Related Documents” has the meaning specified in Section 2.05(b)(i).

“Lenders” means, collectively, the Initial Lenders, the Initial Issuing Banks and each
Person that shall become a party hereto pursuant to Section 9.06.

“Letter of Credit” has the meaning specified in Section 2.01(b).

“Letter of Credit Agreement” has the meaning specified in Section 2.03(a).

“Letter of Credit Commitment” means, with respect to each Initial Issuing Bank, the
Dollar amount set forth opposite such Initial Issuing Bank’s name on the signature pages hereto
under the caption “Letter of Credit Commitment” or, if such Issuing Bank has entered into one or
more Assignment and Acceptances, the Dollar amount set forth for such Issuing Bank in the Register
maintained by the Agent pursuant to Section 9.06(d) as such Issuing Bank’s “Letter of Credit
Commitment.”

“Letter of Credit Facility” means, at any time, an amount equal to the least of (a)
the aggregate amount of the Issuing Banks’ Letter of Credit Commitments at such time, (b)
$200,000,000 and (c) the aggregate amount of the Revolving Credit Commitments.

“Lien” means, with respect to any property, any mortgage, lien, pledge, charge,
security interest or encumbrance in respect of such property, whether or not filed, recorded or
otherwise perfected under applicable law. As used in the definition of Permitted Liens,
“mortgage” means any Lien.

“London Banking Day” means any day in which dealings in United States dollars are
transacted or, with respect to any future date, are expected to be transacted in the London
interbank market.

“Material Adverse Change” means any material adverse change in the business, condition
(financial or otherwise), operations, performance, properties or prospects of the Borrower or the
Borrower and its Subsidiaries taken as a whole.

“Material Adverse Effect” means a material adverse effect on (a) the business,
condition (financial or otherwise), operations, performance, properties or prospects of the
Borrower or the Borrower and its Subsidiaries taken as a whole, (b) the rights and remedies of the
Agent or any Lender or any other Person under this Agreement, any Note or in connection with any
Letter of Credit or (c) the ability of the Borrower to perform its obligations under this
Agreement, any Note or in connection with any Letter of Credit.

“Moody’s” means Moody’s Investors Service, Inc. and its successors.

“Multiemployer Plan” means a “multiemployer plan,” as defined in Section 4001(a)(3) of
ERISA, to which the Borrower or any of its Subsidiaries or any ERISA Affiliate is making or
accruing an obligation to make contributions, or has within any of the preceding five plan years
made or accrued an obligation to make contributions.

“Multiple Employer Plan” means an employee benefit plan, other than a Multiemployer
Plan, subject to Title IV of ERISA to which the Borrower, any Subsidiary or any ERISA Affiliate and
more than one employer other than the Borrower, any Subsidiary or an ERISA Affiliate is making or
accruing an obligation to make contributions, has within any of the preceding five plan years made
or accrued an obligation to make contributions or, in the event that any such plan has been
terminated, to which the Borrower, any Subsidiary or any ERISA Affiliate made or accrued an
obligation to make contributions during any of the five plan years preceding the date of
termination of such plan.

“Note” means a Revolving Credit Note.

“Notice Lenders” means at any time Lenders owed at least 25% in interest of the then
aggregate unpaid principal amount of the Revolving Credit Advances owing to Lenders, or, if no such
principal amount is then outstanding, Lenders having at least 25% in interest of the Revolving
Credit Commitments.

“Notice of Issuance” has the meaning specified in Section 2.03(a).

“Notice of Revolving Credit Borrowing” has the meaning specified in Section 2.02(a).

“Officers’ Certificate” means a certificate signed by any of the Chairman of the
Board, the President, a Vice President, the Controller, the Treasurer of the Borrower or the
Assistant Treasurer and delivered by or on behalf of the Borrower. Each such certificate shall
include the statements provided for in Section 9.15, unless otherwise provided.

“Opinion of Counsel” means an opinion in writing signed by legal counsel who may be an
employee of or counsel to the Borrower and who shall be reasonably satisfactory to the Agent. Each
such opinion shall include the applicable statements, if any, provided for in Section 9.15, unless
otherwise provided.

“Original Currency” has the meaning specified in Section 9.12(a).

“Other Currency” has the meaning specified in Section 9.12(a).

“PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

“Permitted Liens” means:

	 	(1)	 	Any purchase money mortgage created by the Borrower or a Subsidiary of the Borrower to secure
all or part of the purchase price of any property (or to secure a loan made to enable the
Borrower or a Subsidiary of the Borrower to acquire the property described in such mortgage);
provided that the principal amount of the Indebtedness secured by any such mortgage,
together with all other Indebtedness secured by a mortgage on such property, shall not exceed
the purchase price of the property acquired;

	 	(2)	 	Any mortgage existing on any property at the time of the acquisition thereof by the Borrower
or a Subsidiary of the Borrower, whether or not assumed by the Borrower or such Subsidiary,
and any mortgage on any property acquired or constructed by the Borrower or a Subsidiary of
the Borrower and created not later than 12 months after (i) such acquisition or completion of
such construction or (ii) commencement of full operation of such property, whichever is later;
provided that, if assumed or created by the Borrower or a Subsidiary of the Borrower,
the principal amount of the Indebtedness secured by such mortgage, together with all other
Indebtedness secured by a mortgage on such property, shall not exceed the purchase price of
the property, acquired and/or the cost of the property constructed;

	 	(3)	 	Any mortgage created or assumed by the Borrower or a Subsidiary of the Borrower on any
contract for the sale of any product or service or any rights thereunder or any proceeds
therefrom, including accounts and other receivables, related to the operation or use of any
property acquired or constructed by the Borrower or a Subsidiary of the Borrower and created
not later than 12 months after (i) such acquisition or completion of such construction or (ii)
commencement of full operation of such property, whichever is later;

	 	(4)	 	Any mortgage existing on any property of a Subsidiary of the Borrower at the time it becomes
a Subsidiary;

	 	(5)	 	Any refunding or extension of maturity, in whole or in part, of any mortgage created or
assumed in accordance with the provisions of subdivision (1), (2), (3) or (4) above or (10) or
(28) below, provided that the principal amount of the Indebtedness secured by such
refunding mortgage or extended mortgage shall not exceed the principal amount of the
Indebtedness secured by the mortgage to be refunded or extended outstanding at the time of
such refunding or extension and that such refunding mortgage or extended mortgage shall be
limited in Lien to the same property that secured the mortgage so refunded or extended;

	 	(6)	 	Any mortgage created or assumed by the Borrower or a Subsidiary of the Borrower to secure
loans to the Borrower or a Subsidiary of the Borrower maturing within 12 months of the date of
creation thereof and not renewable or extendible by the terms thereof at the option of the
obligor beyond 12 months, and made in the ordinary course of business;

	 	(7)	 	Mechanics’ or materialmen’s Liens or any Lien or charge arising by reason of pledges or
deposits to secure payment of workmen’s compensation or other insurance, good faith deposits
in connection with tenders or leases of real estate, bids or contracts (other than contracts
for the payment of money), deposits to secure public or statutory obligations, deposits to
secure or in lieu of surety, stay or appeal bonds and deposits as security for the payment of
taxes or assessments or other similar charges;

	 	(8)	 	Any mortgage arising by reason of deposits with or the giving of any form of security to any
governmental agency or any body created or approved by law or governmental regulation for any
purpose at any time as required by law or governmental regulation as a condition to the
transaction of any business or the exercise of any privilege or license, or to enable the
Borrower or a Subsidiary of the Borrower to maintain self-insurance or to participate in any
fund for liability on any insurance risks or in connection with workmen’s compensation,
unemployment insurance, old age pensions or other social security or to share in the
privileges or benefits required for companies participating in such arrangements;

	 	(9)	 	Any mortgage which is payable, both with respect to principal and interest, solely out of the
proceeds of oil, gas, coal or other minerals or timber to be produced from the property
subject thereto and to be sold or delivered by the Borrower or a Subsidiary of the Borrower,
including any interest of the character commonly referred to as a “production payment”;

	 	(10)	 	Any mortgage created or assumed by a Subsidiary of the Borrower on oil, gas, coal or other
mineral or timber property, owned or leased by such Subsidiary to secure loans to such
Subsidiary for the purposes of developing such properties, including any interest of the
character commonly referred to as a “production payment;” provided that neither the
Borrower nor any other Subsidiary of the Borrower shall assume or guarantee such loans or
otherwise be liable in respect thereto;

	 	(11)	 	Mortgages upon rights-of-way;

	 	(12)	 	Undetermined mortgages and charges incidental to construction or maintenance;

	 	(13)	 	The right reserved to, or vested in, any municipality or governmental or other public
authority or railroad by the terms of any right, power, franchise, grant, license, permit or
by any provision of law, to terminate or to require annual or other periodic payments as a
condition to the continuance of such right, power, franchise, grant, license or permit;

	 	(14)	 	The Lien of taxes and assessments which are not at the time delinquent;

	 	(15)	 	The Lien of specified taxes and assessments which are delinquent but the validity of which is
being contested in good faith at the time by the Borrower or a Subsidiary of the Borrower;

	 	(16)	 	The Lien reserved in leases for rent and for compliance with the terms of the lease in the
case of leasehold estates;

	 	(17)	 	Defects and irregularities in the titles to any property (including rights-of-way and
easements) which are not material to the business of the Borrower and its Subsidiaries
considered as a whole;

	 	(18)	 	Any mortgages securing Indebtedness neither assumed nor guaranteed by the Borrower or a
Subsidiary of the Borrower nor on which it customarily pays interest, existing upon real
estate or rights in or relating to real estate (including rights-of-way and easements)
acquired by the Borrower or a Subsidiary of the Borrower, which mortgages do not materially
impair the use of such property for the purposes for which it is held by the Borrower or such
Subsidiary;

	 	(19)	 	Easements, exceptions or reservations in any property of the Borrower or a Subsidiary of the
Borrower granted or reserved for the purpose of pipelines, roads, telecommunication equipment
and cable, streets, alleys, highways, railroad purposes, the removal of oil, gas, coal or
other minerals or timber, and other like purposes, or for the joint or common use of real
property, facilities and equipment, which do not materially impair the use of such property
for the purposes for which it is held by the Borrower or such Subsidiary;

	 	(20)	 	Rights reserved to or vested in any municipality or public authority to control or regulate
any property of the Borrower or a Subsidiary of the Borrower, or to use such property in any
manner which does not materially impair the use of such property for the purposes for which it
is held by the Borrower or such Subsidiary;

	 	(21)	 	Any obligations or duties, affecting the property of the Borrower or a Subsidiary of the
Borrower, to any municipality or public authority with respect to any franchise, grant,
license or permit;

	 	(22)	 	The Liens of any judgments in an aggregate amount not in excess of $1,000,000 or the Lien of
any judgment the execution of which has been stayed or which has been appealed and secured, if
necessary, by the filing of an appeal bond;

	 	(23)	 	Zoning laws and ordinances;

	 	(24)	 	Any mortgage existing on any office equipment, data processing equipment (including computer
and computer peripheral equipment) or transportation equipment (including motor vehicles,
aircraft and marine vessels);

	 	(25)	 	Any mortgage created or assumed by the Borrower or a Subsidiary of the Borrower on oil, gas,
coal or other mineral or timber property owned by the Borrower or a Subsidiary of the
Borrower;

	 	(26)	 	Leases now or hereafter existing and any renewals or extensions thereof;

	 	(27)	 	Any mortgage created by the Borrower or a Subsidiary of the Borrower on any contract (or any
rights thereunder or proceeds therefrom) providing for advances by the Borrower or such
Subsidiary to finance gas exploration and development, which mortgage is created to secure
indebtedness incurred to finance such advances; and

	 	(28)	 	Any mortgage not permitted by clauses (1) through (27) above if at the time of, and after
giving effect to, the creation or assumption of any such mortgage, the aggregate of all
Indebtedness of the Borrower and its Subsidiaries secured by all such mortgages not so
permitted by clauses (1) through (27) above does not exceed 15% of the Consolidated Net
Tangible Assets of the Borrower.

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

“Plan” means an employee benefit plan, other than a Multiemployer Plan, (a) which is
maintained for employees of the Borrower, any Subsidiary or any ERISA Affiliate and which is
subject to Section 302 or Title IV of ERISA or Section 412 of the Code or (b) with respect to which
the Borrower, any Subsidiary or any ERISA Affiliate could be subjected to any liability under
Section 302 or Title IV of ERISA (including Section 4069 of ERISA) or Section 412 of the Code.
Without limitation on the foregoing, the term “Plan” includes any employee benefit plan for which
the Borrower or any of its Subsidiaries or any ERISA Affiliate may have any liability arising from
the joint and several liability provisions of Section 302 or Title IV of ERISA or Section 412 of
the Code or from the maintenance or participation in any such plan by the Borrower or any of its
Subsidiaries or any ERISA Affiliate, as a result of the Borrower or any of its Subsidiaries or any
ERISA Affiliate being the successor in interest to any person maintaining or participating in any
such plan or otherwise.

“property” means any right or interest in or to property or assets of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible.

“Pro Rata Share” of any amount means, with respect to any Lender at any time, the
product of (a) a fraction the numerator of which is the amount of such Lender’s Revolving Credit
Commitment at such time and the denominator of which is the aggregate amount of all Revolving
Credit Commitments at such time and (b) such amount.

“Reference Banks” means Citibank, Deutsche Bank AG, J.P. Morgan Chase & Co. and Bank
of America, N.A.

“Register” has the meaning specified in Section 9.06(d).

“Required Lenders” means at any time Lenders owed at least a majority in interest of
the then aggregate unpaid principal amount of the Revolving Credit Advances owing to Lenders, or,
if no such principal amount is then outstanding, Lenders having at least a majority in interest of
the Revolving Credit Commitments.

“Restricted Event” has the meaning specified in Section 8.01.

“Revolving Credit Advance” means an advance by a Lender to the Borrower (i) as part of
a Revolving Credit Borrowing, (ii) in connection with a Letter of Credit or (iii) in connection
with the Conversion of a Eurodollar Rate Advance or a Base Rate Advance into a Specified LIBOR Rate
Advance, and refers to a Base Rate Advance, a Eurodollar Rate Advance or a Specified LIBOR Rate
Advance (each of which shall be a “Type” of Revolving Credit Advance).

“Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving
Credit Advances of the same Type made by each of the Lenders pursuant to Section 2.01.

“Revolving Credit Commitment” means, with respect to any Lender at any time, (a) the
Dollar amount set forth opposite such Lender’s name on the signature pages hereto under the caption
“Revolving Credit Commitment” or (b) if such Lender has entered into one or more Assignment and
Acceptances, the Dollar amount set forth for such Lender in the Register maintained by the Agent
pursuant to Section 9.06(d) as such Lender’s “Revolving Credit Commitment.”

“Revolving Credit Note” means a promissory note of the Borrower payable to the order
of any Lender, delivered pursuant to a request made under Section 2.14 in substantially the form of
Exhibit A hereto, evidencing the aggregate indebtedness of the Borrower to such Lender resulting
from the Revolving Credit Advances made by such Lender.

“S&P” means Standard and Poor’s, a division of The McGraw-Hill Companies, Inc., and
its successors.

“Specified LIBOR Rate” means, with respect to a Specified LIBOR Rate Interest Period,
the rate (expressed as a percentage per annum) for deposits in United States dollars for
three-month periods beginning on the first day of such Specified LIBOR Rate Interest Period (or, if
such first day is not a Specified LIBOR Rate Period End Date, beginning on the immediately
preceding Specified LIBOR Rate Period End Date) that appears on the Telerate Page as of 11:00 a.m.,
London time, on the Specified LIBOR Rate Determination Date. If the Telerate Page does not include
such a rate or is unavailable on a Specified LIBOR Rate Determination Date, the Agent will request
the principal London office of each of four major banks in the London interbank market, as selected
by the Agent, to provide such bank’s offered quotation (expressed as a percentage per annum), as of
approximately 11:00 a.m., London time, on such Specified LIBOR Rate Determination Date, to prime
banks in the London interbank market for deposits in a Specified LIBOR Rate Representative Amount
in United States dollars for a three-month period beginning on the first day of such Specified
LIBOR Rate Interest Period (or, if such first day is not a Specified LIBOR Rate Period End Date,
beginning on the immediately preceding Specified LIBOR Rate Period End Date). If at least two such
offered quotations are so provided, the Specified LIBOR Rate for the Specified LIBOR Rate Interest
Period will be the arithmetic mean of such quotations. If fewer than two such quotations are so
provided, the Agent will request each of three major banks in New York City, as selected by the
Agent, to provide such bank’s rate (expressed as a percentage per annum), as of approximately 11:00
a.m., New York City time, on such Specified LIBOR Rate Determination Date, for loans in a Specified
LIBOR Rate Representative Amount in United States dollars to leading European banks for a
three-month period beginning on the first day of such Specified LIBOR Rate Interest Period (or, if
such first day is not a Specified LIBOR Rate Period End Date, beginning on the immediately
preceding Specified LIBOR Rate Period End Date). If at least two such rates are so provided, the
Specified LIBOR Rate for the Specified LIBOR Rate Interest Period will be the arithmetic mean of
such rates. If fewer than two such rates are so provided, the Specified LIBOR Rate for the
Specified LIBOR Rate Interest Period will be the Specified LIBOR Rate in effect with respect to the
immediately preceding Specified LIBOR Rate Interest Period. Notwithstanding the foregoing, the
Specified LIBOR Rate for the Specified LIBOR Rate Interest Period, if any, ending on or about
January 1, 2006 will be 3.91258% per annum.

“Specified LIBOR Rate Advance” means a Revolving Credit Advance that bears interest as
provided in Section 2.06(a)(iii).

“Specified LIBOR Rate Determination Date” means, with respect to a Specified LIBOR
Rate Interest Period, the second London Banking Day preceding the first day of the Specified LIBOR
Rate Interest Period (or, if such first day is not a Specified LIBOR Rate Period End Date,
preceding the immediately preceding Specified LIBOR Rate Period End Date).

“Specified LIBOR Rate Interest Period” means, for each Specified LIBOR Rate Advance,
the period commencing on the date of the Conversion of any Base Rate Advance or Eurodollar Rate
Advance into such Specified LIBOR Rate Advance and ending on the next following Specified LIBOR
Rate Period End Date and, thereafter, each subsequent period commencing on the last day of the
immediately preceding Specified LIBOR Rate Interest Period and ending on the next following
Specified LIBOR Rate Period End Date; provided, however, that whenever the first
day of any Specified LIBOR Rate 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 Specified LIBOR Rate
Interest Period, such Specified LIBOR Rate Interest Period shall end on the last Business Day of
such succeeding calendar month.

“Specified LIBOR Rate Period End Date” means January 1, April 1, July 1 and October 1
of each year, commencing on January 1, 2006; provided that, whenever a Specified LIBOR Rate
Period End Date would otherwise occur on a day other than a Business Day, such Specified LIBOR Rate
Period End Date shall be deferred to the next succeeding Business Day; provided,
however, that, if such deferral would cause such Specified LIBOR Rate Period End Date to
occur in the next following calendar month, such Specified LIBOR Rate Period End Date shall occur
on the next preceding Business Day.

“Specified LIBOR Rate Representative Amount” means a principal amount of not less than
U.S. $1,000,000 for a single transaction in the relevant market at the relevant time.

“Subsidiary” means, with respect to any specified Person:

(a) any corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees of the
corporation, association or other business entity is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and

(b) any partnership (1) the sole general partner or the sole managing general partner of
which is such Person or a Subsidiary of such Person or (2) the only general partners of
which are that Person or one or more Subsidiaries of that Person (or any combination
thereof).

“Telerate Page” means, as applicable, page 3750 (or any successor page) of the
Telerate Service of Moneyline Telerate (or any successor).

“Termination Date” means the earlier of (a) October 1, 2010 and (b) the date the Agent
declares Advances to be accelerated pursuant to Section 6.01.

“Treasury Rate” means the yield to maturity (calculated on a semi-annual
bond-equivalent basis) at the time of the computation of United States Treasury securities with a
constant maturity (as compiled by and published in the most recent Federal Reserve Statistical
Release H.15 (519), which has become publicly available at least two Business Days prior to the
date of the related acceleration or, if such Statistical Release is no longer published, any
publicly available source of similar market data) most nearly equal to the then remaining period
until the date specified in clause (a) of the definition of Termination Date (the “Remaining
Period”); provided that if the Remaining Period expressed as a number of years
(calculated to the nearest one-twelfth) is not equal to the constant maturity of the United States
Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by
linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average
yields of United States Treasury securities for which such yields are given, except that if such
Remaining Period is less than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year shall be used.

“Type” has the meaning specified in the definition of Revolving Credit Advance.

“Underfunding” means, with respect to any Plan, the excess, if any, of the
“accumulated benefit obligations” (within the meaning of Statement of Financial Accounting
Standards 87) under such Plan (determined using the actuarial assumptions and discount rate used
with respect to such Plan in the most recent financial statements of the Borrower) over the fair
market value of the assets held under the Plan.

“Unissued Letter of Credit Commitment” means, with respect to any Issuing Bank, the
obligation of such Issuing Bank to issue Letters of Credit at the request of the Borrower in an
amount equal to the excess of (a) the amount of its Letter of Credit Commitment over (b) the
aggregate Available Amount of all Letters of Credit issued by such Issuing Bank.

“Unused Commitment” means, with respect to each Lender at any time, (a) the amount of
such Lender’s Revolving Credit Commitment at such time minus (b) the sum of (i) the
aggregate principal amount of all Revolving Credit Advances made by such Lender (in its capacity as
a Lender) and outstanding at such time, plus (ii) such Lender’s Pro Rata Share of (A) the
aggregate Available Amount of all the Letters of Credit outstanding at such time and (B) the
aggregate principal amount of all Revolving Credit Advances made by each Issuing Bank pursuant to
Section 2.03(c) that have not been ratably funded by such Lender and outstanding at such time.

“Voting Stock” of any Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the Board of Directors of such Person.

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

SECTION 1.02. 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 mean “to but excluding”.

SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein
shall be construed, and all financial computations and determinations pursuant hereto shall be
made, in accordance with GAAP consistent with those applied in the preparation of the financial
statements referred to in Section 4.01(e).

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES AND LETTERS OF CREDIT

SECTION 2.01. The Revolving Credit Advances and Letters of Credit. (a) Revolving
Credit Advances. Without limiting each Lender’s obligation to make a Revolving Credit Advance
pursuant to Section 2.03(c), each Lender severally agrees, on the terms and conditions hereinafter
set forth, to make Revolving Credit Advances to the Borrower from time to time on any Business Day
during the period from the Effective Date until the Commitment Termination Date in an aggregate
amount not to exceed at any time such Lender’s Unused Commitment at such time. Each Revolving
Credit Borrowing, other than a Revolving Credit Advance pursuant to Section 2.03(c), shall be in an
aggregate amount not less than $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 (but limited to a Base Rate Advance
or a Eurodollar Rate Advance) made on the same day by the Lenders ratably according to their
respective Revolving Credit Commitments; provided, however, that if there is no
unused portion of the Revolving Credit Commitment of one or more Lenders at the time of any
requested Revolving Credit Borrowing such Borrowing shall consist of Revolving Credit Advances made
on the same day by the Lender or Lenders who do then have an Unused Commitment ratably according to
the aggregate Unused Commitments. Within the limits of each Lender’s Revolving Credit Commitment,
the Borrower may borrow under this Section 2.01(a), prepay pursuant to Section 2.09 and reborrow
under this Section 2.01(a).

(b) Letters of Credit. Each Issuing Bank agrees, on the terms and conditions
hereinafter set forth, to issue letters of credit (each, a “Letter of Credit”) for the
account of the Borrower from time to time on any Business Day during the period from the Effective
Date until the Commitment Termination Date (i) in an aggregate Available Amount for all Letters of
Credit issued by all Issuing Banks not to exceed at any time the Letter of Credit Facility at such
time, (ii) in an amount for each Issuing Bank not to exceed the amount of such Issuing Bank’s
Letter of Credit Commitment at such time and (iii) in an amount for each such Letter of Credit not
to exceed an amount equal to the Unused Commitments of the Lenders at such time. No Letter of
Credit shall have an expiration date (including all rights of the Borrower or the beneficiary to
require renewal) later than 10 Business Days prior to the date specified in clause (a) of the
definition of Termination Date. Within the limits referred to above, the Borrower may request the
issuance of Letters of Credit under this Section 2.01(b), repay pursuant to Section 2.09 any
Revolving Credit Advances resulting from drawings thereunder pursuant to Section 2.03(c) and
request the issuance of additional Letters of Credit under this Section 2.01(b). The terms
“issue”, “issued”, “issuance” and all similar terms, when applied to a Letter of Credit, shall
include any increase, renewal, extension or amendment thereof.

SECTION 2.02. Making the Revolving Credit Advances. (a) Each Revolving Credit
Borrowing shall be made on notice, given not later than (x) 11:00 A.M. (New York City time) on the
third Business Day prior to the date of the proposed Revolving Credit Borrowing in the case of a
Revolving Credit Borrowing consisting of Eurodollar Rate Advances or (y) 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 to the Agent, which shall give
to each Lender prompt notice thereof by telecopier or telex. Each such notice of a Revolving
Credit Borrowing (a “Notice of Revolving Credit Borrowing”) shall be by telephone,
confirmed immediately in writing, or telecopier or telex in substantially the form of Exhibit B
hereto, specifying therein the requested (i) date of such Revolving Credit Borrowing, (ii) Type of
Advances comprising such Revolving Credit Borrowing (but limited to a Base Rate Advance or a
Eurodollar Rate Advance), (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 Lender shall, before 11:00 A.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 the Agent’s Account, in same day funds, such Lender’s
ratable portion (as determined in accordance with Section 2.01(a)) of such Revolving Credit
Borrowing. After the Agent’s receipt of such funds and upon fulfillment of the applicable
conditions set forth in Article III, the Agent will make such funds available to the Borrower at
the Agent’s address referred to in Section 9.01.

(b) Anything in subsection (a) above to the contrary notwithstanding, (i) the Borrower may not
select Eurodollar Rate Advances for any proposed Revolving Credit Borrowing if the aggregate amount
of such Revolving Credit Borrowing is less than $5,000,000 or if the obligation of the Lenders to
make Eurodollar Rate Advances shall then be suspended pursuant to Section 2.07 or 2.11 and (ii) the
Eurodollar Rate Advances may not be outstanding as part of more than six separate Revolving Credit
Borrowings.

(c) Each Notice of Revolving Credit Borrowing of the Borrower shall be irrevocable and binding
on the Borrower. The Borrower shall indemnify each Lender against any loss, cost or expense
incurred by such Lender as a result of any failure by the 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, including, without limitation, 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 Lender to fund the Revolving Credit Advance to be made
by such Lender as part of such Revolving Credit Borrowing when such Revolving Credit Advance, as a
result of such failure, is not made on such date.

(d) Unless the Agent shall have received notice from a Lender prior to the date of any
Revolving Credit Borrowing that such Lender will not make available to the Agent such Lender’s
ratable portion of such Revolving Credit Borrowing, the Agent may assume that such Lender has made
such portion available to the Agent on the date of such Revolving Credit Borrowing in accordance
with subsection (a) of this Section 2.02 and the Agent may, in reliance upon such assumption, make
available to the Borrower on such date a corresponding amount. If and to the extent that such
Lender shall not have so made such ratable portion available to the Agent, such Lender and the
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 the
Borrower until the date such amount is repaid to the Agent, at (i) in the case of the Borrower, the
interest rate applicable at the time to Revolving Credit Advances comprising such Revolving Credit
Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender shall repay
to the Agent such corresponding amount, such amount so repaid shall constitute such Lender’s
Revolving Credit Advance as part of such Revolving Credit Borrowing for purposes of this Agreement.

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

SECTION 2.03. Issuance of and Drawings and Reimbursement Under Letters of Credit. (a)
Request for Issuance. (i) Each Letter of Credit shall be issued upon 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 issuance of such Letter of Credit (or on such shorter notice as the applicable Issuing
Bank may agree), by the Borrower to any Issuing Bank, and such Issuing Bank shall give the Agent,
prompt notice thereof by telex, telecopier or cable. Each such notice of issuance of a Letter of
Credit (a “Notice of Issuance”) shall be by telex, telecopier or cable, confirmed promptly
in writing, specifying therein the requested (A) date of such issuance (which shall be a Business
Day), (B) Available Amount of such Letter of Credit, (C) expiration date of such Letter of Credit
(which shall not be later than 10 Business Days prior to the date specified in clause (a) of the
definition of Termination Date), (D) name and address of the beneficiary of such Letter of Credit
and (E) form of such Letter of Credit, and shall be accompanied by such application and agreement
for letter of credit as such Issuing Bank may reasonably specify to the Borrower for use in
connection with such requested Letter of Credit (a “Letter of Credit Agreement”). If the
beneficiary and requested form of such Letter of Credit is acceptable to such Issuing Bank in its
sole discretion (it being agreed that a Letter of Credit substantially in the form set forth in
Exhibit E hereto (as modified by an Issuing Bank in its reasonable discretion to account for any
change in any regulatory or legal restriction applicable to such Issuing Bank or for any internal
policy, procedure or guideline of such Issuing Bank or its affiliates generally applicable to the
issuance of letters of credit) is acceptable in form to all Initial Issuing Banks), such Issuing
Bank will, upon fulfillment of the applicable conditions set forth in Article III, make such Letter
of Credit available to the Borrower at its office referred to in Section 9.01 or as otherwise
agreed with the Borrower in connection with such issuance. In the event and to the extent that the
provisions of any Letter of Credit Agreement shall conflict with this Agreement, the provisions of
this Agreement shall govern.

(b) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
applicable Issuing Bank or the Lenders, such Issuing Bank hereby grants to each Lender, and each
Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to
such Lender’s Pro Rata Share of the Available Amount of such Letter of Credit. The Borrower hereby
agrees to each such participation. In consideration and in furtherance of the foregoing, each
Lender hereby absolutely and unconditionally agrees to pay to the Agent, for the account of such
Issuing Bank, such Lender’s Pro Rata Share of each drawing made under a Letter of Credit funded by
such Issuing Bank and not reimbursed by the Borrower on the date made, or of any reimbursement
payment required to be refunded to the Borrower for any reason. Each Lender acknowledges and
agrees that its obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence
and continuance of a Default or reduction or termination of the Revolving Credit Commitments, and
that each such payment shall be made without any offset, abatement, withholding or reduction
whatsoever. Each Lender further acknowledges and agrees that its participation in each Letter of
Credit will be automatically adjusted to reflect such Lender’s Pro Rata Share of the Available
Amount of such Letter of Credit at each time such Lender’s Revolving Credit Commitment is assigned
in accordance with Section 9.06 or otherwise amended pursuant to this Agreement.

(c) Drawing and Reimbursement. The payment by an Issuing Bank of a draft drawn under
any Letter of Credit shall constitute for all purposes of this Agreement the making by such Issuing
Bank of a Revolving Credit Advance, which shall be a Base Rate Advance, in the amount of such
draft. Upon written demand by such Issuing Bank, with a copy of such demand to the Agent, each
Lender shall pay to the Agent such Lender’s Pro Rata Share of such outstanding Revolving Credit
Advance, by making available for the account of its Applicable Lending Office to the Agent for the
account of such Issuing Bank, by deposit to the Agent’s Account, in same day funds, an amount equal
to the portion of the outstanding principal amount of such Revolving Credit Advance to be funded by
such Lender. Each Lender acknowledges and agrees that its obligation to make Revolving Credit
Advances pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional
and shall not be affected by any circumstance whatsoever, including any amendment, renewal or
extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the Revolving Credit Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever. Promptly after receipt thereof, the
Agent shall transfer such funds to such Issuing Bank. Each Lender agrees to fund its Pro Rata
Share of an outstanding Revolving Credit Advance on (i) the Business Day on which demand therefor
is made by such Issuing Bank, provided that notice of such demand is given not later than
11:00 A.M. (New York City time) on such Business Day, or (ii) the first Business Day next
succeeding such demand if notice of such demand is given after such time. If and to the extent
that any Lender shall not have so made the amount of such Revolving Credit Advance available to the
Agent, such Lender agrees to pay to the Agent forthwith on demand such amount together with
interest thereon, for each day from the date of demand by any such Issuing Bank until the date such
amount is paid to the Agent, at the Federal Funds Rate for its account or the account of such
Issuing Bank, as applicable. If such Lender shall pay to the Agent such amount for the account of
any such Issuing Bank on any Business Day, such amount so paid in respect of principal shall
constitute a Revolving Credit Advance made by such Lender on such Business Day for purposes of this
Agreement, and the outstanding principal amount of the Revolving Credit Advance made by such
Issuing Bank shall be reduced by such amount on such Business Day.

(d) Letter of Credit Reports. Each Issuing Bank shall furnish (A) to each Lender and
the Agent on the first Business Day of each month a written report summarizing issuance and
expiration dates of Letters of Credit during the preceding month and drawings during such month
under all Letters of Credit and (B) to the Agent and each Lender on the first Business Day of each
calendar quarter a written report setting forth the average daily aggregate Available Amount during
the preceding calendar quarter of all Letters of Credit. Each Issuing Bank shall provide the
reports described in clauses (A) and (B) above to the Borrower upon the Borrower’s request.

(e) Failure to Make Revolving Credit Advances. The failure of any Lender to make the
Revolving Credit Advance to be made by it on the date specified in Section 2.03(c) shall not
relieve any other Lender of its obligation hereunder to make its Revolving Credit Advance on such
date, but no Lender shall be responsible for the failure of any other Lender to make the Revolving
Credit Advance to be made by such other Lender on such date.

SECTION 2.04. Fees. (a) Facility Fee. The Borrower agrees to pay to the
Agent for the account of each Lender a facility fee (the “Facility Fee”) (nonrefundable
under any circumstances), payable quarterly in arrears, on the aggregate amount of such Lender’s
Revolving Credit Commitment from the Effective Date until the date specified in clause (a) of the
definition of Termination Date (or, if later, the date of payment in full of all amounts payable
hereunder (other than indemnities)), at a rate per annum equal to 2.00%; provided,
however, that such Facility Fee shall cease to accrue upon payment in full of all amounts
payable hereunder following the acceleration thereof under Section 6.01 due to an Event of Default
unless such Event of Default occurred by reason of any willful action or inaction taken or not
taken by or on behalf of the Borrower or its Subsidiaries with the intention of avoiding continued
payment of the Facility Fee, in which case the present value of the Facility Fee that would
otherwise accrue until the date specified in clause (a) of the definition of Termination Date,
discounted at the Treasury Rate plus 50 basis points, as determined by the Agent, will become
immediately due and payable to the extent permitted by law upon acceleration of the amounts payable
hereunder. The Facility Fee shall accrue for each period from one Facility Fee Period End Date
(or, in the case of the first such period, the Effective Date) to the next following Facility Fee
Period End Date and shall be payable one Business Day before such following Facility Fee Period End
Date.

(b) Agent’s Fees. The Borrower shall pay to the Agent for its own account such fees
as may from time to time be separately agreed between the Borrower and the Agent.

(c) Initial Fee. The Borrower agrees to pay to Citibank for its own account such
initial fee (nonrefundable under any circumstances) as may be separately agreed between the
Borrower and Citibank, payable on or before the Effective Date.

(d) Additional Fees. The Borrower shall pay to Citibank for its own account such fees
as may from time to time be separately agreed between the Borrower and Citibank.

SECTION 2.05. Repayment of Revolving Credit Advances. (a) The Borrower shall repay
to the Agent for the ratable account of the Lenders, (i) on the Termination Date, the aggregate
principal amount of the Revolving Credit Advances then outstanding and (ii) the aggregate principal
amount of each Revolving Credit Advance made after the Termination Date as the result of a drawing
under a Letter of Credit on the date of such advance (unless such drawing is reimbursed under the
related Letter of Credit Agreement).

(b) The obligations of the Borrower under this Agreement, any Letter of Credit Agreement and
any other agreement or instrument relating to any Letter of Credit shall be unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this Agreement, such Letter
of Credit Agreement and such other agreement or instrument under all circumstances, including,
without limitation, the following circumstances (it being understood that any such payment by the
Borrower is without prejudice to, and does not constitute a waiver of, any rights the Borrower
might have or might acquire as a result of the payment by any Lender of any draft or the
reimbursement by the Borrower thereof):

(i) any lack of validity or enforceability of this Agreement, any Note, any Letter of
Credit Agreement, any Letter of Credit or any other agreement or instrument relating thereto
(all of the foregoing being, collectively, the “L/C Related Documents”);

(ii) any change in the time, manner or place of payment of, or in any other term of,
all or any of the obligations of the Borrower in respect of any L/C Related Document or any
other amendment or waiver of or any consent to departure from all or any of the L/C Related
Documents;

(iii) the existence of any claim, set-off, defense or other right that the Borrower may
have at any time against any beneficiary or any transferee of a Letter of Credit (or any
Persons for which any such beneficiary or any such transferee may be acting), any Issuing
Bank, the Agent, any Lender or any other Person, whether in connection with the transactions
contemplated by the L/C Related Documents or any unrelated transaction;

(iv) any statement or any other document presented under a Letter of Credit proving to
be forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect;

(v) payment by any Issuing Bank under a Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such Letter of Credit;

(vi) any exchange, release or non-perfection of any collateral, or any release or
amendment or waiver of or consent to departure from any guarantee, for all or any of the
obligations of the Borrower in respect of the L/C Related Documents; or

(vii) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including, without limitation, any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the Borrower or a guarantor.

SECTION 2.06. Interest on Revolving Credit Advances. (a) Scheduled Interest.
The Borrower shall pay interest to the Agent for the ratable account of the Lenders on the unpaid
principal amount of each Revolving Credit Advance owing to each Lender 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 Base Rate in effect from
time to time, payable in arrears monthly on the last day of each calendar month 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 Eurodollar Rate for such Interest
Period for such Revolving Credit Advance, payable in arrears on the last day of such
Interest Period and, if such Interest Period has a duration of more than one month, on each
day that occurs during such Interest Period every month from the first day of such Interest
Period and on the date such Eurodollar Rate Advance shall be Converted or paid in full.

(iii) Specified LIBOR Rate Advances. During such periods as such Revolving
Credit Advance is a Specified LIBOR Rate Advance, a rate per annum equal at all times during
each Specified LIBOR Rate Interest Period to the Specified LIBOR Rate for such Specified
LIBOR Rate Interest Period, payable in arrears on the last day of such Specified LIBOR Rate
Interest Period and on the date such Specified LIBOR Rate Advance shall be paid in full.

SECTION 2.07. Interest Rate Determination. (a) Each Reference Bank that is a party
hereto agrees to furnish to the Agent timely information for the purpose of determining each
Eurodollar Rate if the applicable Telerate Page is unavailable. If any one or more of the
Reference Banks shall not furnish such timely information to the Agent for the purpose of
determining any such interest rate, the Agent shall determine such interest rate on the basis of
timely information furnished by the remaining Reference Banks. The Agent shall give prompt notice
to the Borrower and the Lenders of the applicable interest rate determined by the Agent for
purposes of Section 2.06(a)(i), (ii) or (iii), and the rate, if any, furnished by each Reference
Bank for the purpose of determining the interest rate under Section 2.06(a)(ii).

(b) If, with respect to any Eurodollar Rate Advances, the Required Lenders notify the Agent
that (i) they are unable to obtain matching deposits in the London interbank market at or about
11:00 A.M. (London time) on the second Business Day before the making of a Borrowing in sufficient
amounts to fund their respective Revolving Credit Advances as part of such Borrowing during its
Interest Period or (ii) the Eurodollar Rate for any Interest Period for such Advances will not
adequately reflect the cost to such Required Lenders of making, funding or maintaining their
respective Eurodollar Rate Advances for such Interest Period, the Agent shall forthwith so notify
the Borrower and the Lenders, 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 Lenders to make, or to Convert Revolving Credit Advances into, Eurodollar
Rate Advances shall be suspended until the Agent shall notify the Borrower and the Lenders that the
circumstances causing such suspension no longer exist.

(c) If the 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 the Borrower and the Lenders and such
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 Borrowing shall be reduced, by payment or prepayment or otherwise, to less than
$5,000,000, such Advances shall automatically Convert into Base Rate Advances.

(e) Upon the occurrence and during the continuance of any Event of Default, (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 Lenders to make, or to
Convert Advances into, Eurodollar Rate Advances shall be suspended.

(f) If the Telerate Page is unavailable and fewer than two Reference Banks furnish timely
information to the Agent for determining the Eurodollar Rate for any Eurodollar Rate Advances,

(i) the Agent shall forthwith notify the Borrower and the Lenders that the interest
rate cannot be determined for such Eurodollar Rate Advances,

(ii) with respect to Eurodollar Rate Advances, each such Advance will automatically, on
the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance
(or if such Advance is then a Base Rate Advance, will continue as a Base Rate Advance), and

(iii) the obligation of the Lenders to make Eurodollar Rate Advances or to Convert
Revolving Credit Advances into Eurodollar Rate Advances shall be suspended until the Agent
shall notify the Borrower and the Lenders that the circumstances causing such suspension no
longer exist.

(g) On the date the Agent declares the obligation of a Lender to make Advances (other than
Revolving Credit Advances by an Issuing Bank or a Lender pursuant to Section 2.03(c)) and of the
Issuing Banks to issue Letters of Credit to be terminated pursuant to Section 9.06(a), each
Eurodollar Rate Advance and Base Rate Advance with respect to the assigned portion of this
Agreement will automatically Convert into a Specified LIBOR Rate Advance.

SECTION 2.08. Optional Conversion of Revolving Credit Advances. The 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 2.07 and 2.11, Convert all Revolving Credit Advances of the Type of either a Eurodollar
Rate Advance or a Base Rate Advance comprising the same Borrowing into Revolving Credit Advances of
the other such 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, any Conversion of Base Rate Advances into Eurodollar Rate Advances shall
be in an amount not less than the minimum amount specified in Section 2.02(b) and no Conversion of
any Revolving Credit Advances shall result in more separate Revolving Credit Borrowings than
permitted under Section 2.02(b). Each such notice of a Conversion shall, within the restrictions
specified above, specify (i) the date of such Conversion, (ii) the Revolving Credit Advances to be
Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the duration of the
initial Interest Period for each such Advance. Each notice of Conversion shall be irrevocable and
binding on the Borrower.

SECTION 2.09. Prepayments of Revolving Credit Advances. The Borrower may, upon notice
at least two Business Days’ prior to the date of such prepayment, in the case of Eurodollar Rate
Advances, and not later than 11:00 A.M. (New York City time) on the date of such prepayment, in the
case of Base Rate Advances or Specified LIBOR Rate Advances, to the Agent stating the proposed date
and aggregate principal amount of the prepayment, and if such notice is given the 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; provided, however, that
(x) each partial prepayment shall be in an aggregate principal amount not less than $5,000,000 or
an integral multiple of $1,000,000 in excess thereof, (y) in the event of any such prepayment of a
Eurodollar Rate Advance or a Specified LIBOR Rate Advance, the Borrower shall be obligated to
reimburse the Lenders in respect thereof pursuant to Section 9.03(c) and (z) no prepayment may be
made by the Borrower during the 25 days prior to and including the date specified in clause (a) of
the definition of Termination Date.

SECTION 2.10. Increased Costs. (a) If, due to either (i) the introduction of or any
change in or in the interpretation of any law or regulation or (ii) the compliance with any
guideline or request from any central bank or other Governmental Authority including, without
limitation, any agency of the European Union or similar monetary or multinational authority
(whether or not having the force of law), there shall be any increase in the cost to any Eligible
Lender of agreeing to make or making, funding or maintaining Eurodollar Rate Advances or of
agreeing to issue or of issuing or maintaining or participating in Letters of Credit (excluding for
purposes of this Section 2.10 any such increased costs resulting from (i) withholding taxes with
respect to payments by the Borrower to or for the account of any Lender or the Agent hereunder or
under the Notes or any other documents to be delivered hereunder and (ii) changes in the basis of
taxation of overall net income or overall gross income by the United States or by the foreign
jurisdiction or state under the law of which such Lender is organized or has its Applicable Lending
Office or any political subdivision thereof), then the Borrower shall from time to time, upon
demand by such Eligible Lender (with a copy of such demand to the Agent), pay to the Agent for the
account of such Eligible Lender additional amounts sufficient to compensate such Eligible Lender
for such increased cost. A certificate as to the amount of such increased cost, submitted to the
Borrower and the Agent by such Eligible Lender, shall be prima facie evidence of the amount of such
additional amounts. No Eligible Lender shall have any right to recover any additional amounts
under this Section 2.10(a) for any period more than 90 days prior to the date such Eligible Lender
notifies the Borrower of any such amounts.

(b) If any Eligible Lender determines that compliance with any law or regulation or any
guideline or request from any central bank or other Governmental Authority including, without
limitation, any agency of the European Union or similar monetary or multinational authority
(whether or not having the force of law) affects or would affect the amount of capital required or
expected to be maintained by such Eligible Lender or any corporation controlling such Eligible
Lender and that the amount of such capital is increased by or based upon the existence of such
Eligible Lender’s commitment to lend or to issue or participate in Letters of Credit hereunder and
other commitments of this type or the issuance of or participation in the Letters of Credit (or
similar contingent obligations), then, upon demand by such Eligible Lender on the Borrower
accompanied by a 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 Eligible Lender and the calculation upon which any compensation is claimed
hereunder) with a copy of such demand and certificate to the Agent, the Borrower shall pay to the
Agent within five Business Days of receipt of demand for payment for the account of such Eligible
Lender, from time to time as specified by such Eligible Lender, additional amounts sufficient to
compensate such Eligible Lender or such corporation in the light of such circumstances, to the
extent that such Eligible Lender reasonably determines such increase in capital to be allocable to
the existence of such Eligible Lender’s commitment to lend hereunder. A certificate as to such
amounts submitted to the Borrower and the Agent by such Eligible Lender shall be prima
facie evidence of such amounts, absent manifest error. No Eligible Lender shall have any
right to recover any additional amounts under this Section 2.10(b) for any period more than 90 days
prior to the date such Eligible Lender notifies the Borrower of any such amounts.

(c) Before making any demand under this Section 2.10, each Eligible Lender agrees to use
reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to
designate a different 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
Eligible Lender, be otherwise disadvantageous to such Eligible Lender.

SECTION 2.11. Illegality. Notwithstanding any other provision of this Agreement, if
any Lender 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 asserts that it is unlawful, for any Lender 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 such Eurodollar Rate Advance will automatically, upon
such demand, Convert into a Base Rate Advance and (b) the obligation of the Lenders to make
Eurodollar Rate Advances or to Convert Revolving Credit Advances into Eurodollar Rate Advances
shall be suspended until the Agent shall notify the Borrower and the Lenders that the circumstances
causing such suspension no longer exist.

SECTION 2.12. Payments and Computations. (a) The Borrower shall make each payment
hereunder and under any Notes, without regard to existence of any counterclaim, set-off, defense or
other right that the Borrower may have at any time against any Issuing Bank, the Agent, any Lender
or any other Person, whether in connection with the transaction contemplated in this Agreement or
any Note or any unrelated transaction, not later than 11:00 A.M. (New York City time) on the day
when due in Dollars to the Agent at the Agent’s Account in same day funds. The Agent will promptly
thereafter cause to be distributed like funds relating to the payment of principal, interest, or
fees ratably (other than amounts payable pursuant to Sections 2.10 or 9.03(c)) to the Lenders for
the account of their respective Applicable Lending Offices, and like funds relating to the payment
of any other amount payable to any Lender to such Lender for the account of its Applicable Lending
Office, in each case to be applied in accordance with the terms of this Agreement. Upon its
acceptance of an Assignment and Acceptance and recording of the information contained therein in
the Register pursuant to Section 9.06(c), from and after the effective date specified in such
Assignment and Acceptance, the Agent shall make all payments hereunder and under any Notes in
respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such
Assignment and Acceptance shall make all appropriate adjustments in such payments for periods prior
to such effective date directly between themselves.

(b) All computations of interest based on the 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 all computations of interest based on
the Eurodollar Rate, the Specified LIBOR Rate or the Federal Funds Rate and of fees (including the
Facility Fee) 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 or fees are payable. Each determination by the Agent of an interest rate
hereunder shall be conclusive and binding for all purposes, absent manifest error.

(c) Whenever any payment hereunder or under the Notes 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 fee,
as the case may be; provided, however, that, if such extension would cause payment
of interest on or principal of Eurodollar Rate Advances or Specified LIBOR Rate Advances to be made
in the next following calendar month, such payment shall be made on the next preceding Business
Day.

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

(e) In respect of Specified LIBOR Rate Advances and the Facility Fee, all percentages
resulting from any of the calculations hereunder will be rounded, if necessary, to the nearest one
hundred-thousandth of a percentage point, with five one-millionths of a percentage point being
rounded upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)) and all
dollar amounts used in or resulting from such calculations will be rounded to the nearest cent
(with one-half cent being rounded upwards).

SECTION 2.13. Sharing of Payments, Etc. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on
account of the Revolving Credit Advances owing to it (other than pursuant to Sections 2.10 or
9.03(c)) in excess of its Pro Rata Share of payments on account of the Revolving Credit Advances
obtained by all the Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Revolving Credit Advances owing to them as shall be necessary to cause such
purchasing Lender to share the excess payment ratably with each of them; provided,
however, that if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery together with an
amount equal to such Lender’s Pro Rata Share (according to the proportion of (i) the amount of such
Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered. The Borrower agrees that any Lender so purchasing a participation from
another Lender pursuant to this Section 2.13 may, to the fullest extent permitted by law, exercise
all its rights of payment (including the right of set-off) with respect to such participation as
fully as if such Lender were the direct creditor of the Borrower in the amount of such
participation.

SECTION 2.14. Evidence of Debt. (a) Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the Borrower to such
Lender resulting from each Revolving Credit Advance owing to such Lender from time to time,
including the amounts of principal and interest payable and paid to such Lender from time to time
hereunder in respect of Revolving Credit Advances. The Borrower agrees that upon request of any
Lender to the Borrower (with a copy of such request to the Agent) to the effect that such Lender
receive a Revolving Credit Note to evidence (whether for purposes of pledge, enforcement or
otherwise) the Revolving Credit Advances owing to, or to be made by, such Lender, the Borrower
shall promptly execute and deliver to such Lender a Revolving Credit Note payable to the order of
such Lender in a principal amount up to the Revolving Credit Commitment of such Lender.

(b) The Register maintained by the Agent pursuant to Section 9.06(d) shall include a control
account, and a subsidiary account for each Lender, in which accounts (taken together) shall be
recorded (i) the date and amount of each Borrowing made hereunder, the Type of Advances comprising
such Borrowing and, if appropriate, the Interest Period applicable thereto, (ii) the terms of each
Assignment and Acceptance delivered to and accepted by it, (iii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each Lender hereunder
and (iv) the amount of any sum received by the Agent from the Borrower hereunder and each Lender’s
share thereof.

(c) Entries made in good faith by the Agent in the Register pursuant to subsection (b) above,
and by each Lender in its account or accounts pursuant to subsection (a) above, shall be
prima facie evidence of the amount of principal and interest due and payable or to
become due and payable from the Borrower to, in the case of the Register, each Lender and, in the
case of such account or accounts, such Lender, under this Agreement, absent manifest error;
provided, however, that the failure of the Agent or such Lender 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 the Borrower under this Agreement.

SECTION 2.15. Use of Proceeds. The proceeds of the Advances and issuances of Letters
of Credit shall be available (and the Borrower agrees that it shall use such proceeds) solely for
general corporate purposes of the Borrower and its Subsidiaries and consistent with Section
4.01(g).

SECTION 2.16. Additional Interest on Eurodollar Rate Advances. The Borrower shall pay
to each Eligible Lender, so long as such Eligible Lender shall be required under regulations of the
Board of Governors of the Federal Reserve System 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 Eligible Lender to the Borrower, from the
date of such Eurodollar Rate 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 Eurodollar Rate 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 Eligible Lender for such Interest Period, payable on each date on which interest is payable on
such Eurodollar Rate Advance. Such additional interest shall be determined by such Eligible Lender
and notified to the Borrower through the Agent. A certificate as to the amount of such additional
interest submitted to the Borrower and the Agent by such Eligible Lender shall be conclusive and
binding for all purposes, absent manifest error. No Eligible Lender shall have the right to
recover any additional interest pursuant to this Section 2.16 for any period more than 90 days
prior to the date such Eligible Lender notifies the Borrower that additional interest may be
charged pursuant to this Section 2.16.

ARTICLE III

CONDITIONS TO EFFECTIVENESS AND LENDING

SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03.
Sections 2.01 and 2.03 of this Agreement shall become effective on and as of the first date (the
“Effective Date”) on which the following conditions precedent have been satisfied:

(a) There shall have occurred no Material Adverse Change since December 31, 2004, except as
otherwise publicly disclosed prior to the date hereof.

(b) There shall exist no action, Environmental Action, suit, investigation, litigation or
proceeding affecting the Borrower or any of its Subsidiaries pending or, to the knowledge of the
Borrower, threatened before any court, governmental agency or arbitrator that (i) could be
reasonably likely to have a Material Adverse Effect other than the matters (the “Disclosed
Litigation”) described in the Borrower’s filings on Forms 10-K, 10-Q and 8-K under the Exchange
Act on or before the date hereof (the “Exchange Act Disclosure”) or (ii) purports to affect
the legality, validity or enforceability of this Agreement or any Note or the consummation of the
transactions contemplated hereby, and there shall have been no material adverse change in the
status, or financial effect on the Borrower or on the Borrower and its Subsidiaries taken as a
whole, of the Disclosed Litigation from that described in the Exchange Act Disclosure.

(c) Nothing shall have come to the attention of the Lenders during the course of their due
diligence investigation to lead them to believe that the Borrower’s public filings under the
Exchange Act were or have become misleading, incorrect or incomplete in any material respect;
without limiting the generality of the foregoing, the Lenders shall have been given such access to
the management, records, books of account, contracts and properties of the Borrower and its
Subsidiaries as they shall have reasonably requested.

(d) All governmental and third party consents and approvals necessary in connection with the
transactions contemplated hereby shall have been obtained (without the imposition of any conditions
that are not reasonably acceptable to the Lenders), except to the extent that the failure to do so
would not have a Material Adverse Effect, and shall remain in effect, and no law or regulation
shall be applicable in the reasonable judgment of the Lenders that restrains, prevents or imposes
materially adverse conditions upon the transactions contemplated hereby.

(e) The Borrower shall have notified each Lender and the Agent in writing as to the proposed
Effective Date.

(f) The Borrower shall have paid all accrued and unpaid reasonably incurred fees and expenses
of the Agent and the Lenders (including the accrued and unpaid reasonably incurred fees and
expenses of counsel to the Agent).

(g) On the Effective Date, the following statements shall be true and the Agent shall have
received an Officer’s Certificate, in sufficient copies for each Lender, signed by a duly
authorized officer of the Borrower, dated the Effective Date, stating that:

(i) The representations and warranties contained in Section 4.01 are correct on and as
of the Effective Date except where the failure for such representations and warranties to be
correct would not have a Material Adverse Effect, and

(ii) No event has occurred and is continuing that constitutes a Default.

(h) The Agent shall have received on or before the Effective Date the following, each dated
such day, in form and substance reasonably satisfactory to the Agent and (except for the Revolving
Credit Notes) in sufficient copies for each Lender:

(i) The Revolving Credit Notes to the order of the Lenders to the extent requested by
any Lender pursuant to Section 2.14.

(ii) Certified copies of the resolutions of the Board of Directors of the Borrower
approving this Agreement and the Notes, and of all documents evidencing other necessary
corporate action and governmental approvals (to the extent such documents are requested by
any Lender), if any, with respect to this Agreement and such Notes.

(iii) A certificate of the Secretary or an Assistant Secretary of the Borrower
certifying the names and true signatures of the officers of the Borrower authorized to sign
this Agreement and the Notes and the other documents to be delivered hereunder.

(iv) A favorable opinion of James J. Bender, Esq., General Counsel to the Borrower and
Gibson, Dunn & Crutcher LLP, outside counsel for the Borrower, substantially in the form of
Exhibits D-1 and D-2 hereto, respectively, and as to such other matters as any Lender
through the Agent may reasonably request.

(v) Such other approvals, opinions or documents as any Lender, through the Agent, may
reasonably request.

No information delivered by the Borrower pursuant to this Section 3.01 may be designated by
the Borrower to be Confidential Information.

SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing and Letter of Credit
Issuance. The obligation of each Lender to make a Revolving Credit Advance (other than an
Advance made by any Issuing Bank or any Lender pursuant to Section 2.03(c)) on the occasion of each
Revolving Credit Borrowing and the obligation of each Issuing Bank to issue a Letter of Credit
shall be subject to the following conditions precedent:

(a) That the Effective Date shall have occurred.

(b) On the date of such Revolving Credit Borrowing or issuance (and each of the giving of the
applicable Notice of Revolving Credit Borrowing, Notice of Issuance and the acceptance by the
Borrower of the proceeds of such Revolving Credit Borrowing or Letter of Credit shall constitute a
representation and warranty by the Borrower that on the date of such Borrowing or such issuance
such statements are true) no event has occurred and is continuing, or would result from such
Revolving Credit Borrowing or issuance or from the application of the proceeds therefrom, that
constitutes (i) a Default under Sections 6.01(a), (b), (c), (f) or (g) or (ii) an Event of Default.

SECTION 3.03. Determinations Under Sections 3.01. For purposes of determining
compliance with the conditions specified in Section 3.01, each Lender shall be deemed to have
consented to, approved or accepted or to be satisfied with each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders unless an
officer of the Agent responsible for the transactions contemplated by this Agreement shall have
received notice from such Lender prior to the date that the Borrower, by notice to the Lenders,
designates as the proposed Effective Date, specifying its objection thereto in reasonable detail.
The Agent shall promptly notify the Lenders and the Borrower of the occurrence of the Effective
Date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties of the Borrower. The Borrower represents
and warrants as follows:

(a) The Borrower is a corporation duly organized, validly existing and in good standing under
the law of the State of Delaware.

(b) The execution, delivery and performance by the Borrower of this Agreement and the Notes to
be delivered by it, and the consummation of the transactions contemplated hereby, are within the
Borrower’s corporate powers, have been duly authorized by all necessary corporate action, and do
not and will not contravene, or cause or constitute a violation of, any provision of law or
regulation or any provision of the Borrower’s charter or by-laws or result in the breach of, or
constitute a default or require any consent under, or result in the creation of any lien, charge or
encumbrance upon any of the properties, revenues, or assets of the Borrower pursuant to, any
indenture or other material agreement or instrument to which the Borrower is a party or by which
the Borrower or its property may be bound or affected.

(c) No authorization, consent, approval (including any exchange control approval), license or
other action by, and no notice to or filing or registration with, any Governmental Authority,
administrative agency or regulatory body or any other third party (including any creditor) is
required for the due execution, delivery and performance by the Borrower of this Agreement or the
Notes to be delivered by it.

(d) This Agreement has been, and each of the Notes to be delivered by it when delivered
hereunder will have been, duly executed and delivered by the Borrower. This Agreement is, and each
of the Notes when delivered hereunder will be, the legal, valid and binding obligation of the
Borrower enforceable against the Borrower in accordance with their respective terms (subject, as to
the enforcement of remedies, to applicable bankruptcy, reorganization, moratorium and similar laws
affecting creditors rights generally).

(e) The Consolidated balance sheet of the Borrower and its Subsidiaries as at December 31,
2004, and the related Consolidated statements of income and cash flows of the Borrower and its
Subsidiaries for the fiscal year then ended (together with the notes to the financial statements of
the Borrower and its Consolidated Subsidiaries), accompanied by an opinion of Ernst & Young LLP,
independent public accountants, fairly present in all material respects in accordance with GAAP the
Consolidated financial condition of the Borrower and its Subsidiaries as at such date and the
Consolidated results of the operations of the Borrower and its Subsidiaries for the periods ended
on such date. The unaudited interim Consolidated financial statements of the Borrower for each of
the quarterly periods ended March 31, 2005 and June 30, 2005, fairly present in all material
respects in accordance with GAAP the Consolidated financial condition of the Borrower and its
Subsidiaries as at the dates thereof and the results of their operations for the periods covered
thereby (subject to normal year-end audit adjustments). Since December 31, 2004, there has been
no Material Adverse Change, except as otherwise publicly disclosed.

(f) There is no pending or, to the knowledge of the Borrower, threatened action, suit,
investigation, litigation or proceeding, including, without limitation, any Environmental Action,
affecting the Borrower or any of its Subsidiaries before any court, governmental agency or
arbitrator that (i) could be reasonably likely to have a Material Adverse Effect (other than the
Disclosed Litigation) or (ii) purports to affect the legality, validity or enforceability of this
Agreement or any Note or the consummation of the transactions contemplated hereby, and there has
been no material adverse change in the status, or financial effect on the Borrower or on the
Borrower and its Subsidiaries taken as a whole, of the Disclosed Litigation from that described in
the Exchange Act Disclosure.

(g) Neither the Borrower nor its Subsidiaries are engaged in the business of extending credit
for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U issued
by the Board of Governors of the Federal Reserve System), and no proceeds of any Advance will be
used to purchase or carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock. Following application of the proceeds of each Advance,
not more than 25 percent of the value of the assets (either of the Borrower or of the Borrower and
its relevant Subsidiaries on a Consolidated basis) subject to any of the covenants contained in
Article V will be margin stock (within the meaning of Regulation U).

(h) The Borrower is not, and immediately after the application of the proceeds of each
Borrowing, will not be, (i) an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended, or (ii) a “holding
company” within the meaning of the Public Utility Holding Company Act of 1935, as amended.

(i) Neither this Agreement nor any other document delivered by or on behalf of the Borrower or
any of its Affiliates in connection with this Agreement or included therein contained or contains
any material misstatement of fact or omitted 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
misleading.

(j) The Borrower and each of its Subsidiaries and ERISA Affiliates have met their minimum
funding requirements under ERISA with respect to their Plans in all material respects and have not
incurred liability to the PBGC in an amount in excess of $100,000,000, individually or in
aggregate, other than for the payment of premiums, in connection with such Plans.

(k) No ERISA Event has occurred or is reasonably expected to occur with respect to any Plan
and no condition or event currently exists or currently is expected to occur that could result in
any ERISA Event.

(l) The Schedules B (Actuarial Information) to the most recent annual reports (Form 5500
Series) with respect to each Plan, copies of which have been filed with the Internal Revenue
Service (and which will be furnished to any Lender through the Agent upon the request of such
Lender through the Agent to the Borrower), are complete and accurate in all material respects and
fairly present in all material respects the funding status of such Plans at such date.

(m) No amendment with respect to which security is required under Section 401(a)(29) of the
Code or Section 307 of ERISA has been made or is reasonably expected to be made to any Plan. The
aggregate Underfunding with respect to all Plans which have any Underfunding does not exceed
$100,000,000.

(n) Neither the Borrower nor any of its Subsidiaries or ERISA Affiliates has incurred or
reasonably expects to incur any Withdrawal Liability to any Multiemployer Plan in an amount in
excess of $100,000,000, individually or in aggregate.

(o) Neither the Borrower nor any of its Subsidiaries or ERISA Affiliates has been notified by
the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or has been
terminated, within the meaning of Title IV of ERISA. No Multiemployer Plan is reasonably expected
to be in reorganization or to be terminated, within the meaning of Title IV of ERISA, in a
reorganization or termination which might reasonably be expected to result in a liability of the
Borrower or any of its Subsidiaries or ERISA Affiliates in an amount in excess of $100,000,000,
individually or in aggregate.

(p) No default under any agreement or instrument evidencing any Indebtedness of the Borrower
or any of its Subsidiaries has occurred and is continuing, and no such event will occur upon the
occurrence of the Effective Date, other than any such default which could not be reasonably
expected to have a Materially Adverse Effect.

(q) The operations and properties of the Borrower and its Subsidiaries taken as a whole comply
in all material respects with all applicable Environmental Laws, all necessary Environmental
Permits have been applied for or have been obtained and are in effect for the operations and
properties of the Borrower and its Subsidiaries, and the Borrower and its Subsidiaries are in
compliance in all material respects with all such Environmental Permits other than, in any such
case, where any such failure could not be reasonably expected to have a Material Adverse Effect.
Except as described in the Exchange Act Disclosure, no circumstances exist that would be reasonably
likely to form the basis of an Environmental Action against the Borrower or any of its Subsidiaries
or any of their properties that could have a Material Adverse Effect.

ARTICLE V

COVENANTS OF THE BORROWER

SECTION 5.01. Written Statement to Agent. The Borrower will deliver to the Agent on
or before May 31 in each year (beginning with May 31, 2006) an Officers’ Certificate stating that
in the course of the performance by the signers of their duties as officers of the Borrower they
would normally have knowledge of any default by the Borrower in the performance of any covenants
contained in this Agreement, stating whether or not they have knowledge of any such default and, if
so, specifying each such default of which the signers have knowledge and the nature thereof. At
least one signatory to such Officers’ Certificate shall be the principal executive officer,
principal financial officer, Treasurer or principal accounting officer of the Borrower. No
information delivered by the Borrower pursuant to this Section 5.01 may be designated by the
Borrower to be Confidential Information.

SECTION 5.02. Commission Reports; Financial Statements. (a) Whether or not required
by the Commission, the Borrower will furnish to the Agent (unless otherwise publicly available on
or through the Commission’s EDGAR system) within 30 days after the time periods specified in the
Commission’s rules and regulations:

(i) all quarterly and annual financial information that would be required to be
contained in a filing with the Commission on Forms 10-Q and 10-K if the Borrower were
required to file such reports, including a “Management’s Discussion and Analysis of
Financial Condition and Results of Operations”, and, with respect to the annual information
only, a report on the annual financial statements by the Borrower’s certified independent
accountants; and

(ii) all current reports that would be required to be filed with the Commission on Form
8-K if the Borrower were required to file such reports.

(b) On request from the Agent, the Borrower shall provide the Agent with a sufficient number
of copies of all reports and other documents and information that the Agent may be required to
deliver to Lenders pursuant to this Agreement, if any are so required.

(c) To the extent it is required to file them with the Commission, the Borrower will furnish
to the Agent (unless otherwise publicly available on or through the Commission’s EDGAR system),
within 30 days after the time periods specified in the Commission’s rules and regulations, copies
of the annual reports and of the information, documents, and other reports (or copies of such
portions of any of the foregoing as the Commission may from time to time by rules and regulations
prescribe) which the Borrower may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act.

(d) If it is not required to file information, documents, or reports with the Commission
pursuant to either Section 13 or Section 15(d) of the Exchange Act, then the Borrower will file
with the Commission, in accordance with rules and regulations prescribed from time to time by the
Commission, such supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a debt security listed and
registered on a national securities exchange as may be prescribed from time to time in such rules
and regulations and will furnish to the Agent (unless otherwise publicly available on or through
the Commission’s EDGAR system), within 30 days after the time periods specified in the Commission’s
rules and regulations, copies of all information, documents and reports so filed with the
Commission.

(e) Delivery of such reports, information and documents to the Agent is for informational
purposes only and the Agent’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Borrower’s compliance with any of its covenants or the other provisions hereunder (as to which the
Agent is entitled to rely exclusively on Officers’ Certificates).

(f) No information delivered by the Borrower pursuant to this Section 5.02 may be designated
by the Borrower to be Confidential Information.

SECTION 5.03. Limitation On Liens. The Borrower will not, and will not permit any of
its Subsidiaries to, issue, assume or guarantee any Indebtedness secured by a Lien (other than
Permitted Liens) upon any of their property, now owned or hereafter acquired, unless this Agreement
and all payments due under this Agreement are secured on an equal and ratable basis with the
obligations so secured until such time as such obligations are no longer secured by a Lien.

SECTION 5.04. Limitation On Mergers, Consolidations And Sales Of Assets. (a) The
Borrower may not, directly or indirectly: (1) consolidate or merge with or into another Person
(whether or not the Borrower is the surviving Person); or (2) sell, assign, transfer, convey or
otherwise dispose of all or substantially all of the properties or assets of the Borrower and its
Subsidiaries taken as a whole, in one or more related transactions, to another Person unless:

(i) either: (A) the Borrower is the surviving Person; or (B) the Person formed by or
surviving any such consolidation or merger (if other than the Borrower) or to which such
sale, assignment, transfer, conveyance or other disposition has been made is a Person
organized or existing under the laws of the United States, any state of the United States or
the District of Columbia;

(ii) the Person formed by or surviving any such consolidation or merger (if other than
the Borrower) or the Person to which such sale, assignment, transfer, conveyance or other
disposition has been made expressly assumes in form reasonably satisfactory to the Agent all
the obligations of the Borrower under this Agreement, the Notes, the L/C Related Documents
and any other related agreements specified by the Agent in its reasonable discretion and
delivers to the Agent an Opinion of Counsel to the effect that each of those agreements has
been duly authorized, executed and delivered by such Person and constitutes a valid and
binding obligation of such Person, enforceable against such Person in accordance with its
terms (subject to customary exceptions); and

(iii) immediately after such transaction no Default or Event of Default exists.

(b) Notwithstanding the foregoing, the Borrower may not, directly or indirectly, lease all or
substantially all of its properties or assets, in one or more related transactions, to any other
Person.

ARTICLE VI

EVENTS OF DEFAULT

SECTION 6.01. Events of Default. If any of the following events (“Events of
Default”) shall occur and be continuing:

(a) failure by the Borrower to pay any principal of any Advance when the same becomes due and
payable; or

(b) failure by the Borrower to pay: (i) any Facility Fees; (ii) any interest on any Advance;
(iii) any amount payable in respect of any Letter of Credit Agreement; or (iv) any other payment
of fees or other amounts payable under this Agreement or any Note, in each case within thirty days
after the same becomes due and payable; or

(c) failure by the Borrower to comply with the provisions of Section 5.04 hereof; or

(d) failure by the Borrower for 60 days after notice, from the Agent or the Notice Lenders
(with a copy to the Agent), to perform or observe any term, covenant or agreement contained in
this Agreement on its part to be performed or observed; or

(e) failure by the Borrower to pay final judgments aggregating in excess of $100,000,000,
which judgments are not paid, discharged or stayed for a period of 60 days; or

(f) the entry by a court having jurisdiction in the premises of (A) a decree or order for
relief in respect of the Borrower in an involuntary case or proceeding under any applicable Federal
or State bankruptcy, insolvency, reorganization or other similar law or (B) a decree or order
adjudging the Borrower a bankrupt or insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or in respect of the Borrower under any
applicable Federal or State law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Borrower or of any substantial part of the
property of the Borrower, or ordering the winding up or liquidation of the affairs of the Borrower,
and the continuance of any such decree or order for relief or any such other decree or order
unstayed and in effect for a period of 60 consecutive days; or

(g) the commencement by the Borrower of a voluntary case or proceeding under any applicable
Federal or State bankruptcy, insolvency, reorganization or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a
decree or order for relief in respect of the Borrower in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to
the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it
of a petition or answer or consent seeking reorganization or relief under any applicable Federal or
State law, or the consent by it to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar
official of the Borrower or of any substantial part of the property of the Borrower, or the making
by it of an assignment for the benefit of creditors, or the admission by it in writing of its
inability to pay its debts generally as they become due, or the taking of corporate action by the
Borrower in furtherance of any such action;

then, and in any such event, the Agent (i) shall at the request, or may with the consent, of the
Notice Lenders, by notice to the Borrower, declare the obligation of each Lender to make Advances
(other than Revolving Credit Advances by an Issuing Bank or a Lender pursuant to Section 2.03(c))
and of the Issuing Banks to issue Letters of Credit to be terminated, whereupon the same shall
forthwith terminate, and (ii) shall at the request, or may with the consent, of the Notice Lenders,
by notice to the Borrower, declare the Advances, all interest thereon and all other amounts payable
under this Agreement to be forthwith due and payable, whereupon the Advances, all such interest and
all such amounts shall become and be forthwith due and payable, without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived by the Borrower;
provided, that any time after a declaration of acceleration described in clause (ii) has
occurred and before a judgment for payment of the money due has been obtained by any Lender, the
Required Lenders, by written notice to the Borrower and the Agent, may rescind and annul such
declaration and its consequences (but not the termination of the obligations described in clause
(i)) if the rescission would not conflict with any judgment or decree of a court of competent
jurisdiction, all existing Events of Default, other than the nonpayment of the principal of any
Advance and interest on any Advances that have become due solely by the declaration of
acceleration, have been cured or waived, and no such rescission shall affect any subsequent Default
or impair any right consequent thereon; provided, however, that in the event of an
actual or deemed entry of an order for relief with respect to the Borrower under the United States
Bankruptcy Code of 1978, as amended, (A) the obligation of each Lender to make Advances (other than
Revolving Credit Advances by an Issuing Bank or a Lender pursuant to Section 2.03(c)) and of the
Issuing Banks to issue Letters of Credit shall automatically be terminated and (B) the Advances,
all such interest and all such amounts shall automatically become and be due and payable, without
presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by
the Borrower.

SECTION 6.02. Notice of Default or Event of Default. The Agent shall not be deemed to
have knowledge of a Default or Event of Default unless a notice of such Default or Event of Default
is received by the Agent pursuant to Section 9.01. The Borrower shall provide the Agent and the
Lenders with notice in reasonable detail of a Default or Event of Default promptly after becoming
aware of the occurrence thereof.

SECTION 6.03. Actions in Respect of the Letters of Credit upon Default. If any Event
of Default shall have occurred and be continuing, the Agent may with the consent, or shall at the
request, of the Required Lenders, irrespective of whether it is taking any of the actions described
in Section 6.01 or otherwise, make demand upon the Borrower to, and forthwith upon such demand the
Borrower will, make such arrangements in respect of the outstanding Letters of Credit as shall be
acceptable to the Required Lenders.

SECTION 6.04. Waiver Of Existing Defaults. Subject to Section 8.01 of this Agreement,
the Required Lenders by notice to the Agent may waive an existing Default or Event of Default and
its consequences, except (1) a continuing Default or Event of Default with respect to Sections
6.01(a) and (b) of this Agreement or (2) a continuing default in respect of a provision that under
Section 8.01 of this Agreement cannot be amended without the consent of each Lender affected. Upon
any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured for every purpose of this Agreement; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent thereon.

ARTICLE VII

THE AGENT

SECTION 7.01. Authorization and Action. Each Lender (in its capacities as a Lender
and an Issuing Bank (as applicable)) hereby appoints and authorizes the Agent to take such action
as agent on its behalf and to exercise such powers and discretion under this Agreement as are
delegated to the Agent by the terms hereof, together with such powers and discretion as are
reasonably incidental thereto. As to any matters not expressly provided for by this Agreement
(including, without limitation, enforcement or collection of the Notes), 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 Required Lenders, and such instructions shall be binding upon all Lenders and
all holders of Notes; provided, however, that the Agent shall not be required to
take any action that exposes the Agent to personal liability or that is contrary to this Agreement
or applicable law. The Agent agrees to give to each Lender prompt notice of each notice given to
it by the Borrower pursuant to the terms of this Agreement, other than any notice the Borrower is
obligated to provide directly to such Lender.

SECTION 7.02. 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 it or
them 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
treat the Lender that made any Advance as the holder of the indebtedness resulting therefrom until
the Agent receives and accepts an Assignment and Acceptance entered into by such Lender, as
assignor, and an Eligible Assignee, as assignee, as provided in Section 9.06; (ii) may consult with
legal counsel (including counsel for the 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; (iii) makes no
warranty or representation to any Lender and shall not be responsible to any Lender for any
statements, warranties or representations (whether written or oral) made in or in connection with
this Agreement; (iv) shall not have any duty to ascertain or to inquire as to the performance,
observance or satisfaction of any of the terms, covenants or conditions of this Agreement on the
part of the Borrower or the existence at any time of any Default or to inspect the property
(including the books and records) of the Borrower; (v) shall not be responsible to any Lender for
the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to be created under or
in connection with, this Agreement or any other instrument or document furnished pursuant hereto;
and (vi) shall incur no liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telecopier, telegram or telex)
believed by it to be genuine and signed or sent by the proper party or parties.

SECTION 7.03. Citibank and Affiliates. With respect to its Commitment, the Advances
made by it and any Note issued to it, Citibank shall have the same rights and powers under this
Agreement as any other Lender and may exercise the same as though it were not the Agent; and the
term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include Citibank in its
individual capacity. Citibank and its Affiliates may accept deposits from, lend money to, act as
trustee under indentures of, accept investment banking engagements from and generally engage in any
kind of business with, the Borrower, any of its Subsidiaries and any Person who may do business
with or own securities of the Borrower or any such Subsidiary, all as if Citibank were not the
Agent and without any duty to account therefor to the Lenders. The Agent shall have no duty to
disclose information obtained or received by it or any of its Affiliates relating to the Borrower
or its Subsidiaries to the extent such information was obtained or received in any capacity other
than as Agent.

SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent or any other Lender and based on publicly
available information relating to the Borrower, the financial statements referred to in Section
4.01 and such other documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will,
independently and without reliance upon the Agent or any other Lender and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under this Agreement.

SECTION 7.05. Indemnification. (a) Each Lender severally agrees to indemnify the
Agent (to the extent not reimbursed by the Borrower), from and against such Lender’s Pro Rata Share
of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred
by, or asserted against the Agent in any way relating to or arising out of this Agreement or any
action taken or omitted by the Agent under this Agreement (collectively, the “Indemnified
Costs”), provided that no Lender shall be liable for any portion of the Indemnified
Costs resulting from the Agent’s gross negligence or willful misconduct. Without limitation of the
foregoing, each Lender agrees to reimburse the Agent promptly upon demand for its Pro Rata Share of
any out-of-pocket expenses (including reasonable 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, to the extent that the Agent is not reimbursed
for such expenses by the Borrower. In the case of any investigation, litigation or proceeding
giving rise to any Indemnified Costs, this Section 7.05 applies whether any such investigation,
litigation or proceeding is brought by the Agent, any Lender or a third party.

(b) Each Lender severally agrees to indemnify the Issuing Banks (to the extent not promptly
reimbursed by the Borrower) from and against such Lender’s Pro Rata Share of any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted
against any such Issuing Bank in any way relating to or arising out of this Agreement or any action
taken or omitted by such Issuing Bank hereunder or in connection herewith; provided,
however, that no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from such Issuing Bank’s gross negligence or willful misconduct as found in a final, non-appealable
judgment by a court of competent jurisdiction. Without limitation of the foregoing, each Lender
agrees to reimburse any such Issuing Bank promptly upon demand for its Pro Rata Share of any costs
and expenses (including, without limitation, fees and expenses of counsel) payable by the Borrower
under Section 9.03, to the extent that such Issuing Bank is not promptly reimbursed for such costs
and expenses by the Borrower.

(c) The failure of any Lender to reimburse the Agent or any Issuing Bank, as the case may be,
promptly upon demand for its Pro Rata Share of any amount required to be paid by the Lenders to the
Agent or such Issuing Bank, as the case may be, as provided herein shall not relieve any other
Lender of its obligation hereunder to reimburse the Agent or such Issuing Bank, as the case may be,
for its Pro Rata Share of such amount, but no Lender shall be responsible for the failure of any
other Lender to reimburse the Agent or any such Issuing Bank, as the case may be, for such other
Lender’s Pro Rata Share of such amount. Without prejudice to the survival of any other agreement
of any Lender hereunder, the agreement and obligations of each Lender contained in this Section
7.05 shall survive the payment in full of principal, interest and all other amounts payable
hereunder and under the Notes. The Agent and each Issuing Bank agrees to return to the Lenders
their respective Pro Rata Shares of any amounts paid under this Section 7.05 that are subsequently
reimbursed by the Borrower.

SECTION 7.06. Successor Agent. The Agent may resign at any time by giving written
notice thereof to the Lenders and the Borrower and may be removed at any time with or without cause
by the Required Lenders. Upon any such resignation or removal, the Required Lenders shall have the
right to appoint a successor Agent. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days after the retiring
Agent’s giving of notice of resignation or the Required Lenders’ removal of the retiring Agent,
then the retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be a
commercial bank organized under the laws of the United States of America or of any State thereof
having a combined capital and surplus of at least $500,000,000 and a long-term credit rating of at
least “A3” from Moody’s and “A-” from S&P. Upon the acceptance of any appointment as Agent
hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested
with all the rights, powers, discretion, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations 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.

ARTICLE VIII

AMENDMENTS

SECTION 8.01. Amendments, Etc. With Consent of Lenders. Except as provided in Section
8.02, no amendment or waiver of any provision of this Agreement or the Revolving Credit Notes, nor
consent to any departure by the Borrower therefrom, shall in any event be effective unless the same
shall be in writing and signed by the Required Lenders, 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 Lenders, do any of the following: (a) waive any of the conditions specified
in Sections 3.01 and 3.02, (b) subject the Lenders to any additional obligations, (c) increase the
Commitments of the Lenders, (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 principal of, or interest on, the Revolving Credit Advances or any fees or other amounts
payable hereunder, (f) change the percentage of the Revolving Credit Commitments, the aggregate
Available Amount of outstanding Letters of Credit or of the aggregate unpaid principal amount of
the Revolving Credit Advances, or the number of Lenders, that shall be required for the Lenders or
any of them to take any action hereunder or (g) amend this Section 8.01 (each of clauses (a)
through (g), a “Restricted Event”); and provided further that (x) no
amendment, waiver or consent shall, unless in writing and signed by the Agent in addition to the
Lenders required above to take such action, affect the rights or duties of the Agent under this
Agreement or any Note and (y) no amendment, waiver or consent shall, unless in writing and signed
by the Issuing Banks in addition to the Lenders required above to take such action, affect the
rights or obligations of the Issuing Banks in their capacities as such under this Agreement.

SECTION 8.02. Amendments Without Consent of Lenders. (a) The Agent and the Borrower,
when authorized by a resolution of its Board of Directors (which resolution may provide general
terms or parameters for such action and may provide that the specific terms of such action may be
determined in accordance with or pursuant to an Officers’ Certificate), may from time to time and
at any time amend this Agreement for one or more of the following purposes:

(i) to convey, transfer, assign, mortgage or pledge to the Lenders as security for the
obligations hereunder any property;

(ii) to evidence the succession of another corporation to the Borrower, or successive
successions, and the assumption by the successor corporation of the covenants, agreements
and obligations of the Borrower pursuant to Section 5.04;

(iii) to add to the covenants of the Borrower such further covenants, restrictions,
conditions or provisions as the Borrower and the Agent shall consider to be for the
protection of the Lenders, and to make the occurrence, or the occurrence and continuance, of
a default in any such additional covenants, restrictions, conditions or provisions an Event
of Default permitting the enforcement of all or any of the several remedies provided in this
Agreement as herein set forth; provided, that in respect of any such additional
covenant, restriction, condition or provision such amendment may provide for a particular
period of grace after default (which period may be shorter or longer than that allowed in
the case of other defaults) or may provide for an immediate enforcement upon such an Event
of Default or may limit the remedies available to the Agent or the Lender upon such an Event
of Default or may limit the right of the Required Lenders to waive such an Event of Default;
and

(iv) (x) to cure any ambiguity or to correct or supplement any provision contained
herein or in any amendment which may be defective or inconsistent with any other provision
contained herein or in any amendment, or (y) to make any other provisions as the Borrower
may deem necessary or desirable, provided that in either case no such action shall
adversely affect the interests of the Lenders.

(b) The Agent is hereby authorized to join with the Borrower in the execution of any such
amendment, to make any further appropriate agreements and stipulations which may be therein
contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property
thereunder, but the Agent shall not be obligated to enter into any such amendment which affects the
Agent’s own rights, duties or immunities under this Agreement or otherwise.

(c) Any amendment authorized by the provisions of this Section may be executed without the
consent of any Lenders.

(d) Promptly after the execution by the Borrower and the Agent of any amendment pursuant to
the provisions of Section 8.02, the Borrower and the Agent shall give notice thereof to the
Lenders. Any failure of the Borrower or the Agent to give such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such amendment.

SECTION 8.03. Documents to Be Given to Agent. The Agent, subject to the provisions of
Article VII, may receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence
that any amendment or waiver executed pursuant to this Article VIII complies with the applicable
provisions of this Agreement.

ARTICLE IX

MISCELLANEOUS

SECTION 9.01. Notices, Etc. All notices and other communications provided for
hereunder shall be in writing (including telecopier, telegraphic or telex communication) and mailed
(return receipt requested), telecopied, telegraphed, telexed or delivered, if to the Borrower, its
address at The Williams Companies, Inc., One Williams Center, Suite 5000, Tulsa, Oklahoma 74172,
Attention: Patti Kastl, Facsimile No.: (918) 573-2065; if to any Initial Lender, at its Domestic
Lending Office specified opposite its name on Schedule I hereto; if to any other Lender, at its
Domestic Lending Office specified in the Assignment and Acceptance pursuant to which it became a
Lender or as otherwise notified to the Borrower; and if to the Agent, at its address at Two Penns
Way, Suite 110, New Castle, Delaware 19720, Attention: Global Loans Manager; or, as to the Borrower
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 Borrower and the Agent. All such notices and communications
shall, when mailed, telecopied, telegraphed or telexed, be effective when deposited in the mails,
telecopied, delivered to the telegraph company or confirmed by telex answerback, respectively,
except that notices and communications to the Agent pursuant to Article II, III, VI or VII shall
not be effective until received by the Agent. Delivery by telecopier of an executed counterpart of
any amendment or waiver of any provision of this Agreement or the Notes or of any Exhibit hereto to
be executed and delivered hereunder shall be effective as delivery of a manually executed
counterpart thereof.

SECTION 9.02. Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.
(a) No right or remedy herein conferred upon or reserved to the Agent or to the Lenders is
intended to be exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

(b) No delay or omission of the Agent or of any Lender to exercise any right or power accruing
upon any Event of Default occurring and continuing as aforesaid shall impair any such right or
power or shall be construed to be a waiver of any such Event of Default or an acquiescence therein;
and every power and remedy given by this Agreement or by law to the Agent or to the Lenders may be
exercised from time to time, and as often as shall be deemed expedient, by the Agent or by the
Lenders.

SECTION 9.03. Costs and Expenses. (a) The Borrower agrees to pay on demand all
reasonable costs and expenses of the Agent in connection with the preparation, execution, delivery,
administration, modification and amendment of this Agreement, the Notes and the other documents to
be delivered hereunder, including, without limitation, (A) all due diligence, syndication
(including printing, distribution and bank meetings), transportation, computer, duplication,
appraisal, consultant, and audit expenses and (B) the reasonable fees and expenses of outside
counsel for the Agent with respect thereto and with respect to advising the Agent as to its rights
and responsibilities under this Agreement. The Borrower further agrees to pay on demand all
reasonable costs and expenses of the Agent and the Eligible Lenders, if any (including, without
limitation, reasonable counsel fees and expenses), in connection with the enforcement (whether
through negotiations, legal proceedings or otherwise) of this Agreement, the Notes and the other
documents to be delivered hereunder, including, without limitation, reasonable fees and expenses of
outside counsel for the Agent and each Eligible Lender in connection with the enforcement of rights
under this Section 9.03(a).

(b) The Borrower agrees to indemnify and hold harmless the Agent, each Eligible Lender and
each of their Affiliates and their officers, directors, employees, agents and advisors (each, an
“Indemnified Party”) from and against any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of counsel) that may be
incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including, without limitation, in connection with any
investigation, litigation or proceeding or preparation of a defense in connection therewith) (i)
the Notes, this Agreement, any of the transactions contemplated herein or the actual or proposed
use of the proceeds of the Advances or (ii) the actual or alleged presence of Hazardous Materials
on any property of the Borrower or any of its Subsidiaries or any Environmental Action relating in
any way to the Borrower or any of its Subsidiaries, except to the extent such claim, damage, loss,
liability or expense has resulted from such Indemnified Party’s (or any of its Affiliates) gross
negligence or willful misconduct. In the case of an investigation, litigation or other proceeding
to which the indemnity in this Section 9.03(b) applies, such indemnity shall be effective whether
or not such investigation, litigation or proceeding is brought by the Borrower, its Subsidiaries,
its directors, shareholders or creditors or an Indemnified Party or any other Person, whether or
not any Indemnified Party is otherwise a party thereto and whether or not the transactions
contemplated hereby are consummated. The Borrower also agrees not to assert any claim for special,
indirect, consequential or punitive damages against the Agent, any Lender, any of their Affiliates,
or any of their respective directors, officers, employees, attorneys and agents, on any theory of
liability, arising out of or otherwise relating to the Notes, this Agreement, any of the
transactions contemplated herein or the actual or proposed use of the proceeds of the Advances.

(c) If any payment of principal of, or Conversion of, any Eurodollar Rate Advance or Specified
LIBOR Rate Advance is made by the Borrower to or for the account of a Lender other than on the last
day of the Interest Period or Specified LIBOR Rate Interest Period, as applicable, for such
Advance, as a result of a payment or Conversion pursuant to Sections 2.07, 2.09 or 2.11,
acceleration of the maturity of the Notes pursuant to Section 6.01 or for any other reason, the
Borrower shall, upon demand by such Lender (with a copy of such demand to the Agent), pay to the
Agent for the account of such Lender any amounts required to compensate such Lender for any
additional losses, costs or expenses that it may reasonably incur as a result of such payment or
Conversion, including, without limitation, 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 Lender to fund or maintain such Advance.

(d) Without prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the Borrower contained in Sections 2.10 and 9.03 shall survive the
payment in full of principal, interest and all other amounts payable hereunder and under the Notes
and the termination in whole of any Commitment hereunder.

SECTION 9.04. Waiver of Set-off. Each Lender waives any right of setoff,
counterclaim, deduction, diminution or abatement based upon any claim it may have against the
Borrower under this Agreement.

SECTION 9.05. Binding Effect. This Agreement shall become effective (other than
Sections 2.01 and 2.03, which shall only become effective upon satisfaction of the conditions
precedent set forth in Section 3.01) when it shall have been executed by the Borrower and the Agent
and when the Agent shall have been notified by each Initial Lender that such Initial Lender has
executed it and thereafter shall be binding upon and inure to the benefit of the Borrower, the
Agent and each Lender and their respective successors and assigns, except that the Borrower shall
not have the right to assign its rights hereunder or any interest herein without the prior written
consent of the Lenders.

SECTION 9.06. Assignments and Participations. (a) Each Lender may at any time assign
to one or more Persons all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Revolving Credit Commitment, its Unissued
Letter of Credit Commitment, the Revolving Credit Advances owing to it, its participations in
Letters of Credit and the Revolving Credit Note or Notes held by it); provided,
however, that (i) except in the case of an assignment to a Person that, immediately prior
to such assignment, was a Lender or a participant or sub-participant or owner of a beneficial
interest thereof (and further assignments by such Persons or subsequent assignees) or an assignment
of all of a Lender’s rights and obligations under this Agreement, the amount of the Revolving
Credit Commitment of the assigning Lender being assigned pursuant to each such assignment
(determined as of the date of the Assignment and Acceptance with respect to such assignment) shall
in no event be less than $5,000,000 or an integral multiple of $1,000,000 in excess thereof unless
the Borrower and the Agent otherwise agree, (ii) each such assignment shall be to an Eligible
Assignee, (iii) the parties to each such assignment shall execute and deliver to the Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance, together with any Revolving
Credit Note subject to such assignment and a processing and recordation fee of an amount specified
by the Agent, such amount not to exceed $3,500; provided, however, that the Agent
may accept an Assignment and Acceptance executed by only the assignor where the assignee is an
owner of a beneficial interest described in clause (iii) of the definition of Eligible Assignee,
(iv) any Lender may, without the approval of the Borrower and the Agent, assign all or a portion of
its rights to any of its Affiliates and (v) an Issuing Bank may assign all or a portion of its
obligations only to (x) an Affiliate with a long-term credit rating no lower than that of the
assignor from each of Moody’s and S&P and with market acceptance by beneficiaries of
letters of credit similar to that of the assignor in the reasonable judgment of the assignor and
the Borrower, (y) an assignee or successor pursuant to operation of law or (z) an assignee or
successor pursuant to a merger, consolidation or amalgamation with or into, or transfer of all or
substantially all of the assignor’s assets to, another entity. Upon such execution, delivery,
acceptance and recording, from and after the effective date specified in each Assignment and
Acceptance, (x) the assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, have the
rights and obligations of a Lender hereunder and (y) the Lender assignor thereunder shall, to the
extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment
and Acceptance, relinquish its rights (other than its rights under Sections 2.10 and 9.03 to the
extent any claim thereunder relates to an event arising prior such assignment) and be released from
its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all
or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto). If a Lender assigns all of its rights and obligations
under all or a portion of this Agreement to one or more Persons to whom such Lender has previously
sold a participation pursuant to Section 9.06(e) (so long as the Borrower has consented to the
identity of the participant and the terms of such participation at the time of such sale, such
consent not to be unreasonably withheld or delayed, and such participation has not been amended,
modified or supplemented without the consent of Borrower, such consent not to be unreasonably
withheld or delayed), on the date of such assignment the Agent shall declare the obligation of each
Lender to make Advances (other than Revolving Credit Advances by an Issuing Bank or a Lender
pursuant to Section 2.03(c)) and of the Issuing Banks to issue Letters of Credit to be terminated
with respect to the assigned portion.

(b) By executing and delivering an Assignment and Acceptance or accepting an assignment, the
Lender 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 Assignment and Acceptance,
such assigning Lender makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in connection with this
Agreement or any other instrument or document furnished pursuant hereto or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of
any lien or security interest created or purported to be created under or in connection with, this
Agreement or any other instrument or document furnished pursuant hereto; (ii) such assigning Lender
makes no representation or warranty and assumes no responsibility with respect to the financial
condition of the Borrower or the performance or observance by the Borrower of any of its
obligations under this Agreement or any other instrument or document furnished pursuant hereto;
(iii) such assignee confirms that it has received or has had the opportunity to request a copy of
such documents and information as it has deemed appropriate to make its decision to enter into such
Assignment and Acceptance or accept such assignment; (iv) such assignee will, independently and
without reliance upon the Agent, such assigning Lender or any other Lender 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; (v) such assignee confirms that it
is an Eligible Assignee; (vi) such assignee appoints and authorizes the Agent to take such action
as agent on its behalf and to exercise such powers and discretion under this Agreement as are
delegated to the Agent by the terms hereof, 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 that by the terms of this Agreement are required to be
performed by it as a Lender or as an Issuing Bank, as the case may be.

(c) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and, if
applicable, an assignee representing that it is an Eligible Assignee, together with any Revolving
Credit Note or Notes subject to such assignment, the Agent shall, if such Assignment and Acceptance
has been completed and is in substantially the form of Exhibit C hereto, (i) accept such Assignment
and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt
notice thereof to the Borrower.

(d) The Agent shall maintain at its address referred to in Section 9.01 a copy of each
Assignment and Acceptance delivered to and accepted by it and a register for the recordation of the
names and addresses of the Lenders and the Commitment of, and principal amount of the Advances
owing to, each Lender from time to time in addition to the items set forth in Section 2.14(b) (the
“Register”). The entries in the Register shall be conclusive and binding for all purposes,
absent manifest error, and the Borrower, the Agent and the Lenders may treat each Person whose name
is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The Register
shall be available for inspection by the Borrower or any Lender at any reasonable time and from
time to time upon reasonable prior notice.

(e) Each Lender may sell participations to one or more banks or other Persons (other than the
Borrower or any of its Affiliates) in or to all or a portion of its rights and obligations under
this Agreement (including, without limitation, all or a portion of its Revolving Credit Commitment,
its Unissued Letter of Credit Commitment, the Revolving Credit Advances owing to it, its
participations in Letters of Credit and any Revolving Credit Note or Notes held by it);
provided, however, that except as otherwise agreed by the parties hereto, (i) such
Lender’s obligations under this Agreement (including, without limitation, its Revolving Credit
Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations, (iii) such Lender
shall remain the holder of any such Note for all purposes of this Agreement, (iv) the Borrower, the
Agent and the other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement and (v) no participant
under any such participation shall have any right to approve any amendment or waiver of any
provision of this Agreement or any Note, or any consent to any departure by the Borrower therefrom,
except, if the Borrower has consented to the granting of such right to such participant, such
consent not to be unreasonably withheld or delayed, to the extent that such amendment, waiver or
consent would reduce the principal of, or interest on, the Notes 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 Notes or any fees or other amounts
payable hereunder, in each case to the extent subject to such participation. If a Lender shall
notify the Borrower of the existence of such a participant or sub-participant, the Borrower shall
provide such participant and sub-participant, as applicable, with the same reports, notices,
certificates, opinions and other information in sufficient numbers as requested by the recipient as
the Borrower is required to provide to the Agent or such Lender under this Agreement (other than
pursuant to Article II).

(f) Any Lender, participant or sub-participant may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section 9.06, disclose to
the assignee or participant or proposed assignee or participant (or holders of beneficial interest
therein), any information relating to the Borrower furnished to such Lender, participant or
sub-participant by or on behalf of the Borrower; provided that, prior to any such
disclosure, the assignee or participant or proposed assignee or participant (or holders of
beneficial interest therein) shall agree to preserve the confidentiality of any Confidential
Information relating to the Borrower received by it from such Lender, participant or
sub-participant.

(g) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time assign or create a security interest in all or any portion of its rights under this Agreement
(including, without limitation, the Advances owing to it and any Note or Notes held by it) in favor
of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the
Federal Reserve System.

SECTION 9.07. Confidentiality. Each of the Lenders and the Agent agrees that it will
use reasonable efforts (e.g., procedures substantially comparable to those applied by such Lender
or Agent in respect of non-public information as to the business of such Lender or Agent) to not
disclose Confidential Information to any other Person without the consent of the Borrower, other
than (a) by the Agent to any Lender, (b) by any Lender to any other Lender or the Agent, (c) to the
Agent’s or such Lender’s Affiliates and their officers, directors, employees, agents and advisors
and, as contemplated by Section 9.06(f), to actual or prospective assignees and participants (or
holders of beneficial interest therein), and then only on a confidential basis, (d) as required by
any law, rule or regulation or judicial process, (e) as requested or required by any state, federal
or foreign authority, examiner or auditor regulating banks or banking, (f) to counsel for any
Lender or the Agent and their respective independent public accountants, (g) to the extent such
information relates to an Event of Default, (h) in connection with any litigation to which the
Agent or any Lender is a party and (i) in connection with the exercise of any remedies hereunder or
any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder;
provided that a determination by a Lender or Agent as to the application of the
circumstances described in the foregoing clauses (a)-(i) is conclusive if made in good faith; and
each of the Lenders and the Agent agrees that it will follow procedures which are intended to put
any transferee of such Confidential Information on notice that such information is confidential.

SECTION 9.08. Governing Law. This Agreement and the Notes shall be governed by, and
construed in accordance with, the law of the State of New York.

SECTION 9.09. 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 an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of a manually executed counterpart of this Agreement.

SECTION 9.10. Jurisdiction, Etc. (a) Each of the parties hereto hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any
New York State court or federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement or the Notes, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in any such New York State court or, to the extent
permitted by law, in such federal court. The Borrower hereby agrees that service of process in any
such action or proceeding brought in any such New York State court or in such federal court may be
made upon CT Corporation System at its offices at 1633 Broadway, New York, New York 10019 (the
“Process Agent”) and the Borrower hereby irrevocably appoints the Process Agent its
authorized agent to accept such service of process, and agrees that the failure of the Process
Agent to give any notice of any such service shall not impair or affect the validity of such
service or of any judgment rendered in any action or proceeding based thereon. Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that any party may otherwise have to serve legal
process in any other manner permitted by law or to bring any action or proceeding relating to this
Agreement or the Notes in the courts of any jurisdiction.

(b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement or the
Notes in any New York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

SECTION 9.11. Final Agreement. This Agreement and each Letter of Credit Agreement
constitute the entire agreement between the parties with respect to the matters addressed herein
and supersede all prior or simultaneous agreements, written or oral, with respect thereto.

SECTION 9.12. Judgment. (a) If for the purposes of obtaining judgment in any court it
is necessary to convert a sum due hereunder or under the Notes in any currency (the “Original
Currency”) into another currency (the “Other Currency”), the parties hereto agree, to
the fullest extent that they may effectively do so, that the rate of exchange used shall be that at
which in accordance with normal banking procedures the Agent could purchase the Original Currency
with the Other Currency at 9:00 A.M. (New York City time) on the first Business Day preceding that
on which final judgment is given.

(b) The obligation of the Borrower in respect of any sum due in the Original Currency from it
to any Lender or the Agent hereunder or under the Revolving Credit Note or Revolving Credit Notes
held by such Lender shall, notwithstanding any judgment in any Other Currency, be discharged only
to the extent that on the Business Day following receipt by such Lender or Agent (as the case may
be) of any sum adjudged to be so due in such Other Currency, such Lender or Agent (as the case may
be) may in accordance with normal banking procedures purchase Dollars with such Other Currency; if
the amount of Dollars so purchased is less than the sum originally due to such Lender or Agent (as
the case may be) in the Original Currency, the Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender or Agent (as the case may be) against
such loss, and if the amount of Dollars so purchased exceeds the sum originally due to any Lender
or the Agent (as the case may be) in the Original Currency, such Lender or Agent (as the case may
be) agrees to remit to the Borrower such excess.

SECTION 9.13. No Liability of the Issuing Banks. The Borrower assumes all risks of
the acts or omissions of any beneficiary or transferee of any Letter of Credit with respect to its
use of such Letter of Credit. None of the Agents, the Lenders nor any Issuing Bank, nor any of
their respective Affiliates, nor the respective directors, officers, employees, agents and advisors
of such Person or such Affiliate shall be liable or responsible for: (a) the use that may be made
of any Letter of Credit or any acts or omissions of any beneficiary or transferee in connection
therewith; (b) the validity, sufficiency or genuineness of documents, or of any endorsement
thereon, even if such documents should prove to be in any or all respects invalid, insufficient,
fraudulent or forged; (c) payment by such Issuing Bank against presentation of documents that do
not comply with the terms of a Letter of Credit, including failure of any documents to bear any
reference or adequate reference to the Letter of Credit; or (d) any other circumstances whatsoever
in making or failing to make payment under any Letter of Credit, except that the Borrower shall
have a claim against such Issuing Bank, and such Issuing Bank shall be liable to the Borrower, to
the extent of any direct, but not consequential, damages suffered by the Borrower that the Borrower
proves were caused by (i) such Issuing Bank’s willful misconduct or gross negligence as determined
in a final, non-appealable judgment by a court of competent jurisdiction in determining whether
documents presented under any Letter of Credit comply with the terms of the Letter of Credit or
(ii) such Issuing Bank’s willful failure to make lawful payment under a Letter of Credit after the
presentation to it of a draft and certificates strictly complying with the terms and conditions of
the Letter of Credit. In furtherance and not in limitation of the foregoing and without limiting
the generality thereof, the parties agree that, with respect to such Issuing Bank may accept
documents that appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary.

SECTION 9.14. Waiver of Jury Trial. Each of the Borrower, the Agent and the Lenders
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 Agreement or the
Notes or the actions of the Agent or any Lender in the negotiation, administration, performance or
enforcement thereof.

SECTION 9.15. Officers’ Certificates and Opinions of Counsel; Statements to Be Contained
Therein. (a) Each certificate or opinion provided for in this Agreement and delivered to the
Agent with respect to compliance with a condition or covenant provided for in this Agreement shall
include (i) a statement that the person making such certificate or opinion has read such covenant
or condition, (ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based, which
examination or investigation may be carried out by his or her designee, (iii) a statement that, in
the opinion of such person, he or she has made such examination or investigation as is necessary to
enable him or her to express an opinion as to whether or not such covenant or condition has been
complied with and (iv) a statement as to whether or not, in the opinion of such person, such
condition or covenant has been complied with.

(b) Any certificate, statement or opinion of an officer of the Borrower may be based, insofar
as it relates to legal matters, upon a certificate or opinion of or representations by counsel,
unless such officer knows that the certificate or opinion or representations with respect to the
matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous,
or in the exercise of reasonable care should know that the same are erroneous. Any certificate,
statement or opinion of counsel may be based, insofar as it relates to factual matters or
information with respect to which is in the possession of the Borrower, upon the certificate,
statement or opinion of or representations by an officer or officers of the Borrower, unless such
counsel knows that the certificate, statement or opinion or representations with respect to the
matters upon which his or her certificate, statement or opinion may be based as aforesaid are
erroneous, or in the exercise of reasonable care should know that the same are erroneous.

(c) Any certificate, statement or opinion of an officer of the Borrower or of counsel may be
based, insofar as it relates to accounting matters, upon a certificate or opinion of or
representations by an accountant or firm of accountants in the employ (or former employ) of the
Borrower or any of its Subsidiaries, unless such officer or counsel, as the case may be, knows that
the certificate or opinion or representations with respect to the accounting matters upon which his
or her certificate, statement or opinion may be based as aforesaid are erroneous, or in the
exercise of reasonable care should know that the same are erroneous.

(d) Any certificate or opinion of any independent firm of public accountants filed with and
directed to the Agent shall contain a statement that such firm is independent.

3

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.

THE WILLIAMS COMPANIES, INC.

By /s/ Rodney J. Sailor

Name: Rodney J. Sailor

Title: Treasurer

[Additional signatures on succeeding page]

4

CITIBANK, N.A.,

as Agent

By /s/ Todd J. Mogil

Title: Attorney-in-Fact

Initial Issuing Banks

	 	 	 	 	 
	Letter of Credit Commitment
	 	 
	 
	 	 	 	 
	 
	 	 
	 
	 	 	 	 
	$200,000,000

	 	CITICORP USA, INC.

By /s/ Todd J. Mogil
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	$200,000,000

	 	Total of the Letter of Credit Commitments
	 	Title: Vice President

Initial Lenders

	 	 	 
	Revolving Credit Commitment

	 
	 	 
	 

	 
	 	 
	$200,000,000

	 	CITICORP USA, INC.

By /s/ Todd J. Mogil
	
 
	 	 
	
 
	 	Title: Vice President
	 
	 	 
	$200,000,000

	 	Total of the Revolving Credit Commitments

5

SCHEDULE I

THE WILLIAMS COMPANIES, INC.

FIVE YEAR CREDIT AGREEMENT

APPLICABLE LENDING OFFICES

	 	 	 	 	 	 	 	 	 
	Name of Initial Lender	 	Domestic Lending Office	 	Eurodollar Lending Office
	Citicorp USA, Inc.
	 	Two Penns Way	 	Two Penns Way

	 
	 	Suite 110
	 	Suite 110

	 
	 	New Castle, DE  19720
	 	New Castle, DE  19720

	 
	 	Attn: Global Loans Manager
	 	Attn: Global Loans Manager

	 
	 	Phone:  302-894-6035
	 	Phone:  302-894-6035

	 
	 	Fax:  212-994-0847
	 	Fax:  212-994-0847

6

EXHIBIT A — FORM OF

REVOLVING CREDIT NOTE

U.S.$     Dated:      , 200_

FOR VALUE RECEIVED, the undersigned, The Williams Companies, Inc., a Delaware corporation (the
“Borrower”), HEREBY PROMISES TO PAY to the order of      (the
“Lender”) for the account of its Applicable Lending Office on the Termination Date (each as
defined in the Credit Agreement referred to below) the principal sum of U.S.$[amount of the
Lender’s Commitment in figures] or, if less, the aggregate principal amount of the Revolving Credit
Advances made by the Lender to the Borrower pursuant to the $200,000,000 Five Year Credit Agreement
dated as of September 20, 2005 among the Borrower, the Lender and certain other lenders parties
thereto, the Issuing Banks parties thereto and Citibank, N.A. as Agent for the Lender and such
other lenders and the Issuing Banks (as amended or modified from time to time, the “Credit
Agreement”; the terms defined therein being used herein as therein defined) outstanding on such
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 are payable in lawful money of the United States of America to
Citibank, N.A. as Agent, at Two Penns Way, Suite 110, New Castle, Delaware 19720, in same day
funds. Each Revolving Credit Advance owing to the Lender by the Borrower pursuant to the Credit
Agreement, and all payments made on account of principal thereof, shall be recorded by the Lender
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 Revolving Credit 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 Lender 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 and notice of any kind. 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 law of the
State of New York.

	 	 	 	THE
WILLIAMS COMPANIES, INC.

	 	 	 	By
     

Title:

7

ADVANCES AND PAYMENTS OF PRINCIPAL

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

8

EXHIBIT B — FORM OF NOTICE OF

REVOLVING CREDIT BORROWING

Citibank, N.A., as Agent

for the Lenders and Issuing Banks parties

to the Credit Agreement

referred to below

Two Penns Way

New Castle, Delaware 19720

[Date]

Attention: Bank Loan Syndications Department

Ladies and Gentlemen:

The undersigned, The Williams Companies, Inc., refers to the $200,000,000 Five Year Credit
Agreement, dated as of September 20, 2005 (as amended or modified from time to time, the
“Credit Agreement”, the terms defined therein being used herein as therein defined), among
the undersigned, certain Lenders and Issuing Banks parties thereto, and Citibank, N.A., as Agent
for said Lenders and Issuing Banks, and hereby gives you notice, irrevocably, pursuant to Section
2.02 of the Credit Agreement that the undersigned hereby requests a Revolving Credit Borrowing
under the Credit Agreement, and in that connection sets forth below the information relating to
such Revolving Credit Borrowing (the “Proposed Revolving Credit Borrowing”) as required by
Section 2.02(a) of the Credit Agreement:

(i) The Business Day of the Proposed Revolving Credit Borrowing is      ,
200_.

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

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

[(iv) The initial Interest Period for each Eurodollar Rate Advance made as part of the
Proposed Revolving Credit Borrowing is      month[s].]

The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Revolving Credit Borrowing:

(A) the Effective Date has occurred.

9

(B) no event has occurred and is continuing, or would result from such Proposed Revolving
Credit Borrowing or from the application of the proceeds therefrom, that constitutes a Default
under Section 6.01(a), (b), (c), (f) or (g) of the Credit Agreement or an Event of Default.

Very truly yours,

THE WILLIAMS COMPANIES, INC.

By      

Title:

10

EXHIBIT C — FORM OF

ASSIGNMENT AND ACCEPTANCE

Reference is made to the $200,000,000 Five Year Credit Agreement dated as of September 20,
2005 (as amended or modified from time to time, the “Credit Agreement”) among The Williams
Companies, Inc., a Delaware corporation (the “Borrower”), the Lenders and Issuing Banks
(each as defined in the Credit Agreement) and Citibank, N.A., as agent for the Lenders and Issuing
Banks (the “Agent”). Terms defined in the Credit Agreement are used herein with the same
meaning.

The “Assignor” and the “Assignee” referred to on Schedule 1 hereto agree as follows:

1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases
and assumes from the Assignor, an interest in and to the Assignor’s rights and obligations under
the Credit Agreement 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 together with
participations in Letters of Credit held by the Assignor on the date hereof. After giving effect
to such sale and assignment, the Assignee’s Revolving Credit Commitment and the amount of the
Revolving Credit Advances owing to the Assignee will be as set forth on Schedule 1 hereto.

2. The Assignor (i) represents and warrants that it is the legal and beneficial owner of the
interest being assigned by it hereunder; (ii) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations made in or in
connection with the Credit Agreement or any other instrument or document furnished pursuant thereto
or the execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to be created under or
in connection with, the Credit Agreement or any other instrument or document furnished pursuant
thereto; (iii) makes no representation or warranty and assumes no responsibility with respect to
the financial condition of the Borrower or the performance or observance by the Borrower of any of
its obligations under the Credit Agreement or any other instrument or document furnished pursuant
thereto; (iv) attaches the Revolving Credit Note[, if any,] held by the Assignor [and requests that
the Agent exchange such Revolving Credit Note for a new Revolving Credit Note payable to the order
of [the Assignee in an amount equal to the Revolving Credit Commitment assumed by the Assignee
pursuant hereto or new Revolving Credit Notes payable to the order of the Assignee in an amount
equal to the Revolving Credit Commitment assumed by the Assignee pursuant hereto and] the Assignor
in an amount equal to the Revolving Credit Commitment retained by the Assignor under the Credit
Agreement, respectively, as specified on Schedule 1 hereto]; and (v) if required pursuant to clause
(iv) of the definition of Eligible Assignee, represents and warrants that it has obtained consent
of the Borrower.

3. The Assignee (i) confirms that it has received a copy of such documents and information as
it has deemed appropriate to make its decision to enter into this Assignment and Acceptance; (ii)
agrees that it will, independently and without reliance upon the Agent, the Assignor or any other
Lender 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 Agreement; (iii)
confirms that it is an Eligible Assignee; (iv) appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement
as are delegated to the Agent by the terms thereof, together with such powers and discretion as are
reasonably incidental thereto; and (v) agrees that it will perform in accordance with their terms
all of the obligations that by the terms of the Credit Agreement are required to be performed by it
as a Lender.

4. Following the execution of this Assignment and Acceptance, it will be delivered to the
Agent for acceptance and recording by the Agent. The effective date for this Assignment and
Acceptance (the “Assignment Date”) shall be the date of acceptance hereof by the Agent,
unless otherwise specified on Schedule 1 hereto.

5. Upon such acceptance and recording by the Agent, as of the Assignment Date, (i) the
Assignee shall be a party to the Credit Agreement and, to the extent provided in this Assignment
and Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall,
to the extent provided in this Assignment and Acceptance, relinquish its rights and be released
from its obligations under the Credit Agreement.

6. Upon such acceptance and recording by the Agent, from and after the Assignment Date, the
Agent shall make all payments under the Credit Agreement and the Revolving Credit Notes in respect
of the interest assigned hereby (including, without limitation, all payments of principal, interest
and Facility Fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all
appropriate adjustments in payments under the Credit Agreement and the Revolving Credit Notes for
periods prior to the Assignment Date directly between themselves.

7. This Assignment and Acceptance shall be governed by, and construed in accordance with, the
law of the State of New York.

8. This Assignment and Acceptance 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 Assignment and Acceptance by telecopier
shall be effective as delivery of a manually executed counterpart of this Assignment and
Acceptance.

IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this Assignment
and Acceptance to be executed by their officers thereunto duly authorized as of the date specified
thereon.

11

Schedule 1

to

Assignment and Acceptance

	 	 	 	 	 	 	 	 	 
	Percentage interest assigned:
	 	 	 	 	 	 	—	%
	Assignee’s Revolving Credit Commitment:
	 	 	 	 	 	$	—	 
	Aggregate outstanding principal amount of Revolving Credit Advances assigned:
	 	$	______	 
	Principal amount of Revolving Credit Note payable to Assignee:
	 	$	______	 
	Principal amount of Revolving Credit Note payable to Assignor:
	 	$	______	 
	Assignment Date*:
	 	 	_______________, 200_	 	 	 	 	 

[NAME OF ASSIGNOR], as Assignor

By      

Title:

Dated:      , 200_

[NAME OF ASSIGNEE], as Assignee

By      

Title:

Dated:      , 200_

Domestic Lending Office:

[Address]

Eurodollar Lending Office:

[Address]

*This date should be no earlier than five
Business Days (or such lesser number agreed by the Agent) after the delivery of
this Assignment and Acceptance to the Agent.

12

	 	 	 
	Accepted [and Approved]** this

     day of      , 200_

CITIBANK, N.A., as Agent

By[

	 	

]
	 

	 	

	Title:

	 	

	[Approved this      day

of      , 200_

THE WILLIAMS COMPANIES, INC.

By

	 	

]*
	 

	 	

Title:

13

EXHIBIT D-1 — FORM OF

OPINION OF OUTSIDE COUNSEL

FOR THE BORROWER

September 20, 2005

	 	 	 
	Direct Dial

(212) 351-4000

	 	Client No.

C 97394-00034

Citibank, N.A.

390 Greenwich Street, 4th Floor

New York, New York 10013

Citicorp USA, Inc.

390 Greenwich Street, 4th Floor

New York, New York 10013

	 	 	 	Re: The Williams Companies, Inc. – U.S. $200,000,000 Five-Year Credit Agreement

dated as of September 20, 2005

Ladies and Gentlemen:

We have acted as counsel to The Williams Companies, Inc., a Delaware corporation (the
“Company”), in connection with the preparation of:

(i) the U.S. $200,000,000 Five-Year Credit Agreement dated as of September 20, 2005
(the “Credit Agreement”) by and among the Company, certain lenders and issuing banks
(collectively, the “Lenders”), and Citibank, N.A. (“Citibank”), as Agent (the “Agent” or,
together with the Lenders, the “Lender Parties”);

(ii) the Continuing Agreement for Standby Letters of Credit (relating to the Credit
Agreement) (the “CUSA Reimbursement Agreement”), dated as of September 20, 2005, between
the Company and Citicorp USA, Inc. (“Citicorp);

(iii) the Continuing Agreement for Standby Letters of Credit (relating to the Credit
Agreement) (the “Citibank Reimbursement Agreement”), dated as of September 20, 2005,
between the Company and Citibank;

(iv) the letter agreement in connection with the Credit Agreement, dated as of
September 20, 2005 (the “Citi Credits and CUSA Credits Letter Agreement”), from each of
Citicorp and Citibank to the Company in respect of, inter alia, the issuance of Citi
Credits and CUSA Credits (as, respectively, defined therein);

(v) the letter agreement, dated as of September 20, 2005 (the “PA and SPA Letter
Agreement”), from the Company to Citibank, Citicorp and The Williams Companies, Inc. Credit
Linked Certificate Trust VI (the “Trust”) in respect of, inter alia, that certain Loan
Participation Agreement and Sub-Participation Agreement (as, respectively, defined
therein); and

(vi) the Revolving Credit Note in connection with the Credit Agreement, dated
September 20, 2005 (the “Note”), made by the Company to the order of Citicorp, as the
Initial Lender under 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 CUSA Reimbursement Agreement, the Citibank
Reimbursement Agreement, the Citi Credits and CUSA Credits Letter Agreement, the PA and SPA Letter
Agreement and the Note are collectively referred to herein as the “Financing Documents.”

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 (except in the case of documents signed on behalf of the
Company) 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)	 	The Company is a validly existing corporation in good
standing under the laws of its state of incorporation and is duly qualified as
a foreign corporation under the laws of the State of New York;

	 	c)	 	Each party to the Financing Documents 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 covered by our opinion in paragraph 2 below)
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 and are legal, valid and binding obligations of such party
(other than the Company), enforceable against it in accordance with their
respective terms;

	 	d)	 	The execution, delivery and performance of the Financing
Documents by the Company do not and will not violate any law, regulation,
order, judgment or decree applicable to the Company, except as expressly
covered by our opinion in paragraph 2 below;

	 	e)	 	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; and

	 	f)	 	The execution, delivery and performance by the Company of the
Financing Documents do not and will not violate (i) the charter or bylaws of
the Company, or (ii) any lease, indenture, instrument or other agreement to
which the Company or its property is subject (other than the Scheduled
Agreements (as defined below) as to which we express solely our opinion in
paragraph 3 below).

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 Company in the Financing Documents, a certificate of an officer of the Company a
copy of which is attached hereto (the “Officer’s Certificate”) or certificates obtained from public
officials.

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 the Company,
enforceable against it in accordance with its terms.

2. The execution, delivery and performance by the Company of the Financing Documents 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 the Company 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.

3. The execution, delivery and performance by the Company of the Financing Documents do not
and will not, based solely upon our review of the Financing Documents, the documents listed on
Schedule A hereto (each a “Scheduled Contract”) and the Officer’s Certificate (i) result in a
breach of or default under any Scheduled Contract or (ii) result in or require the creation or
imposition of any lien or encumbrance upon any assets of the Company under any Scheduled Contract,
other than Permitted Liens.

4. The Company is not 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 Company of the Financing Documents and the performance of
its obligations thereunder do not result in a breach or violation of Regulation T, U or X of the
Board of Governors of the Federal Reserve System.

6. The Company is not, and is not a subsidiary of, a “holding company” as defined in the
Public Utility Holding Company Act of 1935, as amended (“PUHCA”) and therefore is not subject to
regulation thereunder.

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, the United States of America and, for purposes of paragraph 2 above, the
Delaware General Corporation Law. We are not engaged in practice in the State of Delaware;
however, we are generally familiar with the Delaware General Corporation Law as presently in effect
and have made such inquiries as we consider necessary to render the opinions contained in paragraph
2. This opinion is limited to the effect of the present state of the laws of the State of New
York, the United States of America and, to the limited extent set forth above, the laws of the
State of Delaware and the facts as they presently 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. Except as expressly stated in paragraph 6, we express no opinion regarding PUHCA,
or any other federal or state laws or regulations applicable to entities operating in the energy
industry, including regulations of the Federal Energy Regulatory Commission. Except as expressly
set forth in paragraphs 4 through 6 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 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 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.

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, that cannot be waived as
a matter of law; (ii) 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; (iii) any provision in any Financing Document waiving the right to object to venue
in any Federal Court; (iv) any agreement to submit to the jurisdiction of any Federal Court insofar
as it relates to subject matter jurisdiction; (v) any provision purporting to establish
evidentiary standards; or (vi) 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.

D. In rendering our opinions expressed in paragraph 3, insofar as they require factual
analysis of compliance by the Company with, or financial calculations or data in respect of,
financial covenants included in any Scheduled Contract, we have relied entirely upon the Officer’s
Certificate.

E. 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 4.01(g) 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 Agent or any Lender to obtain in good faith a Form FR U-1, FR G-3 or FR T-4 signed by the
Company. Except as expressly set forth in paragraph 5, we express no opinion with respect to
Regulation T of the Board of Governors of the Federal Reserve System.

F. Except as expressly stated in paragraph 2, 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 transactions contemplated by the Financing Documents because of the nature of the business
of such Lender Party.

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, provided that the Lender Parties may provide this opinion (i) to bank examiners and
other regulatory authorities should they so request in connection with their normal examinations,
(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 assignee of or participant in the interest of any Lender Party
under the Financing Documents. This opinion may not be quoted without the prior written consent of
this Firm.

Very truly yours,

14

SCHEDULE A – 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 and 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).

	 

	 

	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. Amended and Restated Credit Agreement, dated as of May 20, 2005, by

and among The Williams Companies, Inc., Northwest Pipeline Corporation,

Transcontinental Gas Pipe Line Corporation and Williams Partners L.P.,

certain lenders, Citicorp USA, Inc. as agent, and Citibank, N.A. and Bank

of America, N.A., as issuing banks.

	 

	 

	5. 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.

	 

	 

	6. Senior Indenture by and among Transcontinental Gas Pipe Line

Corporation and Citibank, N.A., Trustee, dated as of January 16, 1998.

	 

	 

	7. 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 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.

	 

	 

	8. Senior Indenture by and among Northwest Pipeline Corporation and

JPMorgan Chase Bank (formerly known as Chemical Bank), Trustee, dated as

of November 30, 1995.

	 

	 

	9. 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.

	 

	 

	10. 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.

	 

	 

	11. Senior Indenture by and among Transcontinental Gas Pipe Line

Corporation and Citibank N.A., Trustee, dated as of July 15, 1996.

	 

	 

	12. 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.

	 

	 

	13. $200,000,000 Term Loan Agreement, dated as of May 30, 2003, among

Williams Production Holdings LLC, Williams Production RMT Company, the

several lenders from time to time parties thereto and Lehman Commercial

Paper Inc., as administrative agent, as amended by the First Amendment

dated February 25, 2004.

	 

	 

	14. 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.

	 

	 

	15. $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.

	 

	 

	16. $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.

	 

	 

	17. Senior Indenture by and among Transcontinental Gas Pipe Line

Corporation and JPMorgan Chase Bank, N.A., Trustee, dated as of December

17, 2004.

	 

15

THE WILLIAMS COMPANIES, INC.

OFFICER’S CERTIFICATE

The undersigned, Rod 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”), in connection with the U.S. $200,000,000 Five-Year Credit
Agreement dated as of September 20, 2005 (the “Credit Agreement”) by and among the Company,
certain lenders and issuing banks (collectively, the “Lenders”), and Citicorp USA, Inc., as
Agent (the “Agent”), 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.

2. I recognize and acknowledge that this Certificate is being furnished to Gibson, Dunn &
Crutcher in connection with their delivery of their legal opinion of even date herewith pursuant to
Section 3.01(h)(iv) 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, 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. The Company 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.

5. At least 55% of the assets and 55% of the income of the Company and its direct and indirect
wholly-owned subsidiaries are employed in or derived from a business or businesses other than that
of investing, reinvesting, owning, holding, or trading in securities.

6. To the best of my knowledge, each and all of the representations and warranties as to
factual matters relating to the Company 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 my knowledge, there are no agreements or understandings between or among the
Agent, the Lender, the Company, 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.

8. Schedule A to the GDC Opinion lists all indentures, credit agreements and other borrowing
arrangements material to the Company to which the Company or any of its subsidiaries is a party.

9. Neither the Company nor any of its subsidiaries owns or operates facilities used for the
distribution at retail of natural or manufactured gas.

10. Neither the Company nor any of its subsidiaries owns or operates facilities used for
the generation, transmission, or distribution of electric energy for sale, other than facilities
that are and have been determined to be “exempt wholesale generators” (“EWGs”) as defined in the
Public Utility Holding Company Act of 1935 by order of the Federal Energy Regulatory Commission
(“FERC”) or facilities that are and have been certified by FERC as “qualifying facilities” under
the Public Utility Regulatory Policies Act of 1978 and the regulations promulgated by FERC
thereunder (“QFs”). Each QF owned by the Company or any subsidiary is either (i) a qualifying
small power production facility with a capacity of not more than 30 MW or an “eligible solar, wind,
waste or geothermal facility” as defined in the Federal Power Act, or (ii) a qualifying
cogeneration facility. Each EWG and QF complies in all material respects with the requirements for
EWG or QF status, and the representations made to FERC in connection with its application as an EWG
or QF were at the time made, and continue to be, true in all material respects (other than with
respect to changes that have been reported to FERC and do not change the status of any such
generating facility as an EWG or QF).

11. Neither the Company nor any of its subsidiaries owns or controls, or holds with the power
to vote 10% or more of the outstanding voting securities of an entity that owns or operates
facilities used for the distribution at retail of natural or manufactured gas or the generation,
transmission or distribution of electric energy for sale, other than EWGs and QFs (as described
above).

12. Neither the Company nor any of its subsidiaries has filed for registration as a holding
company under PUHCA, sought an order from the Securities and Exchange Commission finding it exempt
from PUHCA or been found by the Securities and Exchange Commission not to be exempt from PUHCA.

13. After giving effect to the incurrence of debt under the Credit Agreement (as defined
above), the ratio of (A) the aggregate amount of Consolidated Debt of the Company and its
Consolidated Subsidiaries as at the time of such incurrence to (B) the sum of the Consolidated Net
Worth of the Company as of the end of the Fiscal Quarter of the Company most recently ended for
which the appropriate financial information is available (adjusted, at the Company’s option, to
give effect, in accordance with GAAP, to all material asset acquisitions and dispositions by the
Company and its Consolidated Subsidiaries since the end of such Fiscal Quarter) plus the aggregate
amount of Consolidated Debt of the Company and its Consolidated Subsidiaries at the time of such
incurrence does not exceed 0.70 to 1.0. (Capitalized terms used in this paragraph without being
defined herein are used with the meanings given to them in the Credit Agreement, dated as of May
3, 2004, by and among the Company, Northwest Pipeline Corporation and Transcontinental Gas Pipe
Line Corporation, certain lenders, Citicorp USA, Inc. as agent, and Citibank, N.A. and Bank of
America, N.A., as issuing banks.)

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

**Required if the Assignee is an Eligible
Assignee solely by reason of clause (iv) of the definition of “Eligible
Assignee”.

*Required if the Assignee is an Eligible
Assignee solely by reason of clause (iv) of the definition of “Eligible
Assignee”.

16

IN WITNESS WHEREOF, the undersigned has executed this Certificate as of September 20, 2005.

     

Name: Rod Sailor

Title: Treasurer

17

EXHIBIT D-2 — FORM OF

OPINION OF GENERAL COUNSEL

OF THE BORROWER

	 	 	 
	James J. Bender

Senior Vice President and

General Counsel

	 	One Williams Center

Tulsa, Oklahoma 74172

918/573-8705

September 20, 2005

Citibank, N.A.

390 Greenwich Street, 4th Floor

New York, New York 10013

and

Citicorp USA, Inc.

390 Greenwich Street, 4th Floor

New York, New York 10013

Re: The Williams Companies, Inc.

Ladies and Gentlemen:

I am the General Counsel of The Williams Companies, Inc., a Delaware corporation (the
“Company”) and have acted as counsel to the Company in connection with certain aspects of
the execution and delivery of the $200,000,000 Credit Agreement, dated as of September 20, 2005
(the “Credit Agreement”), by and among the Company, the banks, financial institutions and
other institutional lenders listed on the signature pages thereto as lenders, and Citibank, N.A.
(“Citibank”) as Agent. This opinion is furnished to you at the request of the Company
pursuant to Section 3.01(h)(iv) of the Agreement. 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 Continuing Agreement for Standby Letters of Credit (relating to the Credit
Agreement), dated as of September 20, 2005, between the Company and Citicorp USA, Inc.
(“Citicorp”);

	 	(c)	 	the Continuing Agreement for Standby Letters of Credit (relating to the Credit
Agreement), dated as September 20, 2005, between the Company and Citibank;

	 	(d)	 	the letter agreement, dated as of September 20, 2005, from each of Citicorp and
Citibank to the Company in respect of, inter alia, the issuance of Citi Credits and
CUSA Credits (as respectively, defined therein) in connection with the Credit Agreement
and included transactions;

	 	(e)	 	the letter agreement, dated as of September 20, 2005, from the Company to
Citibank, Citicorp and The Williams Companies, Inc. Credit Linked Certificate Trust VI
(the “Trust”) in respect of, inter alia, that certain Loan Participation
Agreement and Sub-Participation Agreement (as, respectively, defined therein) in
connection with the Credit Agreement and included transactions;

	 	(f)	 	the Revolving Credit Note dated September 20, 2005, made by the Company to the
order of Citicorp USA, Inc. in connection with the Credit Agreement;

	 	(g)	 	a Certificate of the Secretary of State of the State of Delaware dated as of a
recent date not prior to September 15, 2005, attesting to the continued corporate
existence and good standing of the Company in that State;

	 	(h)	 	the Certificate of Incorporation and By-Laws of the Company, and all amendments
thereto;

	 	(i)	 	certain resolutions adopted by the board of directors of the Company relating
to the transactions contemplated by the Credit Agreement, and

	 	(j)	 	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 (f) 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 the
Company and certificates of public officials, and (iii) received such information from officers and
representatives of the Company 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 Credit Agreement. 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 my examination, I have assumed the legal
capacity of all natural persons, the genuineness of all signatures, the authenticity of all
documents submitted to me as originals, the conformity to original documents of all documents
submitted to me or attorneys under my supervision, as certified, conformed or photostatic copies
and the authenticity of the originals of such latter documents. In making my examination of
documents executed by parties other than the Company, I have assumed that such parties had the
power, corporate or other, to enter into and perform all obligations thereunder and have also
assumed the due authorization by all requisite action, corporate or other, and the due execution
and delivery by such parties of such documents and the validity and binding effect thereof as to
such parties. As to any facts material to the opinions expressed herein which I did not
independently establish or verify, I have relied upon oral and written statements and
representations of officers and other representatives of the Company and others.

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

	 	1.	 	The Company is duly organized, validly existing, and in good standing under the
laws of the State of Delaware. The Company is qualified as a foreign corporation and
in good standing under the laws of each jurisdiction where its ownership or lease 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,
result in a material adverse effect on the performance by the Company of its
obligations under the Transaction Agreements.

	 	2.	 	The execution, delivery, and performance by the Company of the Transaction
Agreements (a) have been duly authorized by all necessary corporate action of the
Company, (b) are within the corporate power and authority of the Company, and (c) do
not contravene the Certificate of Incorporation or Bylaws of the Company.

	 	3.	 	The execution, delivery, and performance by the Company of the Transaction
Agreements (a) do not contravene any law, rule or regulation applicable to the Company,
except such as would not, in the aggregate, reasonably be expected to result in a
material adverse effect on the performance by the Company of its obligations under the
Transaction Agreements, and (b) to my knowledge, do not result in the breach of,
constitute a default under or result in or require the creation of any lien upon any
property of the Company under, any material agreement to which the Company is a party
or by which the Company is bound, other than the Scheduled Contracts as defined and
referred to in the Gibson, Dunn & Crutcher LLP opinion of even date herewith.

	 	4.	 	Each Transaction Agreement has been duly and validly executed and delivered by
the Company.

	 	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 the Company of the Transaction
Agreements, except to the extent that failure to obtain such would not, in the
aggregate, result in a material adverse effect on the Company’s performance of its
obligations under the Transaction Agreements.

	 	6.	 	To the best of my knowledge, there is no action, suit or proceeding pending or
threatened against the Company 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, that I believe would reasonably be expected to materially and adversely
affect the Company and its subsidiaries taken as a whole or the performance by the
Company of its obligations under the Transaction Agreements. As used in this
paragraph, “Public Filings” means all documents the Company has filed pursuant
to Sections 13, 14, or 15(d) of the Securities Exchange Act of 1934 prior to September
20, 2005.

	 	7.	 	Neither the execution, delivery or performance by the Company of the
Transaction Agreements nor the compliance by the Company with the terms and provisions
thereof will violate any provision of the Investment Company Act of 1940, as amended.

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 the Company is duly organized
and in good standing is based solely on a certificate, dated as of a recent date not
prior to September 15, 2005 from the Secretary of State of the State of Delaware
certifying as to such matters.

	 	B.	 	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.

	 	C.	 	I express no opinion as to the effect on the opinions herein stated of
compliance or non-compliance by any of the Initial Lenders, the Initial 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 lender.

	 	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 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 or published or communicated to any person or
entity other than the addressees hereof (and any permitted assignees pursuant to Section 9.06 of
the Credit Agreement, as in effect on the date hereof) for any purpose whatsoever without my prior
written consent in each instance. 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.

Very truly yours,

James J. Bender, Esq.

18

EXHIBIT E — FORM OF

LETTER OF CREDIT

DRAFT OF STANDBY LETTER OF CREDIT

TO BE ISSUED ON LETTERHEAD OF CITICORP USA, INC.

Date:      

Beneficiary:

Citibank, N.A.

c/o Citicorp North America, Inc.

3800 Citibank Center

Building B 3rd Floor

Tampa, FL 33610

Letter of Credit No.      

Ladies and Gentlemen:

By order of The Williams Companies, Inc. (“Williams”), we hereby open our irrevocable Standby
Letter of Credit No.      (this “Credit”), in your favor for an amount of USD [insert an
amount which aggregates the amount of existing Letters of Credit issued by Citibank, N.A. plus
Letters of Credit to be issued by Citibank, N.A. on the date hereof      ] ([ ] U.S. Dollars
and [ ]/100) which may adjust from time to time as provided in the next paragraph, effective
immediately and expiring at our office located at 399 Park Avenue, New York, NY 10022-4614 (the
“Office”) on September 17, 2010.

This Credit has been issued in your favor as security in support of Standby Letters of Credit
already issued by you pursuant to the Continuing Agreement for Standby Letters of Credit (relating
to $200,000,000 Five Year Credit Agreement) dated as of September 20, 2005, between Citibank, N.A.
and The Williams Companies, Inc. or to be issued by you on the date hereof in the amount notified
to us or to be issued by you from time to time hereafter for the account of The Williams Companies,
Inc. pursuant to the Continuing Agreement for Standby Letters of Credit (relating to $200,000,000
Five Year Credit Agreement) dated as of September 20, 2005, between Citibank, N.A. and The Williams
Companies, Inc. (in each case, “Citibank LCs”). The amount outstanding under this Credit may
adjust from time to time, without amendment, to account for (i) drawings hereunder that we have
honored (in the amount of such drawing), (ii) cancellation, reduction or expiration of Citibank
LCs, upon receipt by us of your notice describing such cancellation, reduction or expiration (in
the amount of the available amount of the Citibank LC that has been cancelled or expired or in the
amount of such reduction, as applicable), and (iii) issuance by you from time to time after the
date hereof of Citibank LCs (in the amount of the available amount of the Citibank LC so issued),
subject in the last case to confirmation by us prior to such issuance of the available amount
hereunder. In no event shall the amount outstanding hereunder exceed $200,000,000.

Funds hereunder are available to you against your sending to us by courier or facsimile either of
the following written certifications:

“We hereby demand payment in the amount of USD      because, in connection with our
Standby Letter of Credit No.      (the “Credit”), the beneficiary has
drawn a Draft under the Credit and either The Williams Companies, Inc. has notified us that
it does not intend to pay us the amount of such Draft or we did not receive payment when due
for the amount of such Draft (“Draft” is used herein as defined in the Continuing Agreement
for Standby Letters of Credit (relating to $200,000,000 Five Year Credit Agreement) dated as
of September 20, 2005, between Citibank, N.A. and The Williams Companies, Inc.).”

“We hereby demand payment in the amount of USD      because there has been an Event
of Default, a Collateral Event or a Trigger Event under the Continuing Agreement for Standby
Letters of Credit (relating to $200,000,000 Five Year Credit Agreement) dated as of
September 20, 2005, between Citibank, N.A. and The Williams Companies, Inc.”

Any number of multiple draws is permitted from time to time.

In addition, presentation of drawing document(s) may also be made by fax transmission to (212)
994-0847, or such other fax number identified by Citicorp USA, Inc. in a written notice to you. To
the extent a presentation is made by fax transmission, you must provide telephone notification
thereof to Citicorp USA, Inc. ((302) 894-6061, Sally Schoenleber – Global Loans) prior to or
simultaneously with the sending of such fax transmission, provided, however, that Citicorp USA,
Inc.’s receipt of such telephone notice shall not be a condition to payment hereunder.

We hereby agree to honor your drawing documents as specified above, if presented in compliance with
the terms and conditions of this Standby Letter of Credit.

Should you have occasion to communicate with us regarding this Standby Letter of Credit, please
direct your correspondence to our Office, making specific mention of the Letter of Credit number
indicated above.

Except as otherwise expressly stated herein, this Standby Letter of Credit is subject to the
International Standby Practices (“ISP98”), International Chamber of Commerce, Publication No. 590,
and as to matters not addressed by the ISP98, shall be governed by and construed in accordance with
the laws of the State of New York and applicable U.S. Federal Law.

INSTRUCTIONS TO CITIBANK, N.A.:

In settlement of any payment(s) under your Standby Letter of Credit we hereby authorize you to
debit account of      No.      .

CITICORP USA, INC.

AUTHORIZED SIGNATURE

     

Name:

Title:

19EX-10.1

Exhibit 10.1

Securities Purchase Agreement, dated as of September 21,
2005 (this “Agreement”), among Memory Pharmaceuticals
Corp., a Delaware corporation (the “Company”), and the
Purchasers listed on Exhibit A hereto, together with their permitted
transferees (each, a “Purchaser” and collectively, the
“Purchasers”).

Introduction

The Company and the Purchasers are executing and delivering this Agreement in reliance upon
the exemption from securities registration afforded by Section 4(2) of the Securities Act.

The Purchasers desire to purchase and the Company desires to sell, upon the terms and
conditions stated in this Agreement, up to a maximum of $31,000,000 of the Company’s common stock,
par value $.001 per share (the “Common Stock”) and warrants to purchase Common Stock of the
Company.

The capitalized terms used herein and not otherwise defined have the meanings given them in
Article 7.

In consideration of the premises and the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company
and the Purchasers (severally and not jointly) hereby agree as follows:

ARTICLE I

Purchase and Sale of Securities

Section 1.1 Purchase and Sale of Securities. At the Closing, the Company will issue
and sell to each Purchaser, and each Purchaser will, severally and not jointly, purchase from the
Company the number of shares of Common Stock (the “Shares”) and the number of warrants (the
“Warrants”) to purchase shares of Common Stock set forth opposite such Purchaser’s name on Exhibit
A hereto (the Shares, the Warrants and the Warrant Shares (as defined below) are referred to
collectively as the “Securities”). The purchase price for each Share and the related Warrant shall
be $1.90 (the “Purchase Price”), which is the sum of (i) $1.85, the closing bid price of the Common
Stock as reported on Nasdaq (symbol “MEMY”), as the 4:00 p.m., EDT, closing bid price on September
20, 2005 (the “Stock Purchase Price”), and (ii) $0.05. For each one Share purchased by a
Purchaser, such Purchaser shall receive a Warrant to purchase 0.35 of a share of Common Stock at an
exercise price per share equal to $2.22, which represents 120% of the Stock Purchase Price,
pursuant to a Warrant substantially in the form attached as Exhibit B hereto.

Section 1.2 Payment. Unless otherwise agreed with a Purchaser, at the Closing, each
Purchaser will pay the aggregate Purchase Price set forth opposite its name on Exhibit A hereto by
wire transfer of immediately available funds in accordance with wire instructions provided by the
Company to the Purchasers prior to the Closing. At or promptly following the Closing, the Company
will instruct its transfer agent to credit each Purchaser the number of Shares set forth on Exhibit
A (and, upon request, will deliver stock certificates to the Purchasers representing the Shares)
and will deliver Warrants to purchase the Warrant Shares against delivery of the aggregate Purchase
Price on the Closing Date.

Section 1.3 Closing Date. The closing of the transaction contemplated by this
Agreement will take place on or about September 23, 2005 (the “Closing Date”) and the closing (the
“Closing”) will be held at the offices of Covington & Burling, 1330 Avenue of the Americas, New
York, New York 10019 or at such other time and place as shall be agreed upon by the Company and the
Purchasers hereunder of a majority in interest of the Securities.

ARTICLE II

Representations And Warranties Of The Company

The Company hereby represents and warrants to the Purchasers that:

Section 2.1 Organization and Qualification. The Company is duly incorporated, validly
existing and in good standing under the laws of the State of Delaware, with corporate power and
authority to conduct its business as currently conducted as disclosed in the SEC Documents. The
Company is duly qualified to do business and is in good standing in every jurisdiction in which the
nature of the business conducted by it or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may be, would not
reasonably be expected to have a Material Adverse Effect.

Section 2.2 Authorization; Enforcement. The Company has all requisite corporate power
and authority to enter into and to perform its obligations under this Agreement, to consummate the
transactions contemplated hereby and to issue the Securities in accordance with the terms hereof.
The execution, delivery and performance of this Agreement by the Company and the consummation by it
of the transactions contemplated hereby (including the issuance of the Securities) have been duly
authorized by the Company’s Board of Directors and no further consent or authorization of the
Company, its Board of Directors, or its stockholders is required. This Agreement has been duly
executed by the Company and constitutes a legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, or moratorium or similar laws
affecting creditors’ and contracting parties’ rights generally and except as enforceability may be
subject to general principles of equity and except as rights to indemnity and contribution may be
limited by state or federal securities laws or public policy underlying such laws.

Section 2.3 Capitalization. The authorized capital stock of the Company, as of June
30, 2005, consisted of 100,000,000 shares of Common Stock, of which 21,008,961 shares were issued
and outstanding and 5,000,000 shares of blank check Preferred Stock, $0.001 par value per share,
none of which have been designated. All of the issued and outstanding shares of Common Stock have
been duly authorized, validly issued, fully paid, and nonassessable. Options and warrants to
purchase an aggregate of 3,661,073 shares of Common Stock were outstanding as of June 30, 2005.
Except as disclosed in or contemplated by the SEC Documents, the Company does not have outstanding
any options to purchase, or any preemptive rights or other rights to subscribe for or to purchase,
any securities or obligations convertible into, or any contracts or commitments to issue or sell,
shares of its capital stock or any such options, rights, convertible securities or obligations
other than options granted under the Company’s stock option plans and its employee stock purchase
plan. The Company’s Second Amended and Restated Certificate of Incorporation, as amended (the
“Certificate of Incorporation”), as in effect on the date hereof, and the Company’s Amended and
Restated Bylaws (the “Bylaws”) as in effect on the date hereof, are each filed as exhibits to the
SEC Documents.

Section 2.4 Issuance of Securities. The Shares and all of the shares of Common Stock
issuable upon exercise of the Warrants (the “Warrant Shares”) are duly authorized and, upon
issuance in accordance with the terms of this Agreement (and in case of the Warrant Shares, the
Warrants), will be validly issued, fully paid and non-assessable and will not be subject to
preemptive rights or other similar rights of stockholders of the Company.

Section 2.5 No Conflicts; Government Consents and Permits. (a) The execution,
delivery and performance of this Agreement by the Company and the consummation by the Company of
the transactions contemplated hereby (including the issuance of the Securities) will not (i)
conflict with or result in a violation of any provision of its Certificate of Incorporation or
Bylaws or require the approval of the Company’s stockholders, (ii) violate or conflict with, or
result in a breach of any provision of, or constitute a default under, any agreement, indenture, or
instrument to which the Company is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including United States federal and state securities laws
and regulations and regulations of any self-regulatory organizations to which the Company or its
securities are subject) applicable to the Company, except in the case of clauses (ii) and (iii)
only, for such conflicts, breaches, defaults, and violations as would not reasonably be expected to
have a Material Adverse Effect.

(b) The Company is not required to obtain any consent, authorization or order of, or make any
filing or registration with, any court or governmental agency or any regulatory or self regulatory
agency in order for it to execute, deliver or perform any of its obligations under this Agreement
in accordance with the terms hereof, or to issue and sell the Securities in accordance with the
terms hereof other than such as have been made or obtained, and except for the registration of the
Shares and Warrant Shares under the Securities Act pursuant to Section 6 hereof, any filings
required to be made under federal or state securities laws, and any required filings or
notifications regarding the issuance or listing of additional shares with Nasdaq.

(c) The Company has all franchises, permits, licenses, and any similar authority necessary for
the conduct of its business as now being conducted by it, except for such franchise, permit,
license or similar authority, the lack of which would not reasonably be expected to have a Material
Adverse Effect. The Company has not received any written notice of any proceeding relating to
revocation or modification of any such franchise, permit, license, or similar authority except
where such revocation or modification would not reasonably be expected to have a Material Adverse
Effect.

Section 2.6 SEC Documents, Financial Statements. The Company has timely filed all
reports, schedules, forms, statements and other documents required to be filed by it with the SEC
since April 5, 2004, pursuant to the reporting requirements of the Exchange Act (all of the
foregoing filed prior to the Closing Date and all exhibits included therein and financial
statements and schedules thereto and documents (other than exhibits) incorporated by reference
therein, being hereinafter referred to herein as the “SEC Documents”). As of their respective
dates, the SEC Documents complied as to form in all material respects with the requirements of the
Exchange Act or the Securities Act, as the case may be, and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time
they were filed with the SEC, contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading. The Financial Statements
have been prepared in accordance with accounting principles generally accepted in the United
States, consistently applied, during the periods involved (except (i) as may be otherwise indicated
in the Financial Statements or the notes thereto, or (ii) in the case of unaudited interim
statements, to the extent they may not include footnotes, may be condensed or summary statements or
may conform to the SEC’s rules and instructions for Reports on Form 10-Q) and fairly present in all
material respects the consolidated financial position of the Company as of the dates thereof and
the consolidated results of its operations and cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal and recurring year-end audit adjustments). All
material agreements that were required to be filed as exhibits to the SEC Documents under Item 601
of Regulation S-K (collectively, the “Material Agreements”) to which the Company is a party, or the
property or assets of the Company or are subject, have been filed as exhibits to the SEC Documents.
All Material Agreements are valid and enforceable against the Company in accordance with their
respective terms, except (i) as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or moratorium or similar laws affecting creditors’ rights generally, and (ii) as
enforceability may be subject to general principles of equity and except as rights to indemnity and
contribution may be limited by state or federal securities laws or public policy underlying such
laws. The Company is not in breach of or default under any of the Material Agreements, and to the
Company’s knowledge, no other party to a Material Agreement is in breach of or default under such
Material Agreement, except in each case, for such breaches or defaults as would not reasonably be
expected to have a Material Adverse Effect. The Company has not received a notice of termination
of any of the Material Agreements.

Section 2.7 Absence of Litigation. As of the date hereof, there is no action, suit,
proceeding or investigation before or by any court, public board, government agency,
self-regulatory organization or body pending or, to the Company’s knowledge, threatened against the
Company that if determined adversely to the Company would reasonably be expected to have a Material
Adverse Effect. There has not been, and to the knowledge of the Company, there is not pending, any
investigation by the SEC involving the Company or any current or former director or officer of the
Company. The Company has not received any stop order or other order suspending the effectiveness
of any registration statement filed by the Company under the Exchange Act or the Securities Act
and, to the Company’s knowledge, the SEC has not issued any such order.

Section 2.8 Intellectual Property Rights. To the Company’s knowledge, the Company
owns or possesses, or believes it can obtain on reasonable terms, licenses or sufficient rights to
use all patents, patent applications, patent rights, inventions, know-how, trade secrets,
trademarks, trademark applications, service marks, service names, trade names and copyrights
necessary to enable it to conduct its business as conducted as of the date hereof (the
“Intellectual Property”). To the Company’s knowledge, the Company has not infringed the
intellectual property rights of third parties and no third party, to the Company’s knowledge, is
infringing the Intellectual Property, in each case, which could reasonably be expected to result in
a Material Adverse Effect. Except as disclosed in the SEC Documents, there are no material
options, licenses or agreements relating to the Intellectual Property, nor is the Company bound by
or a party to any material options, licenses or agreements relating to the patents, patent
applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark
applications, service marks, service names, trade names or copyrights of any other person or
entity. As of the date hereof, there is no material claim or action or proceeding pending or, to
the Company’s knowledge, threatened, that challenges the right of the Company with respect to any
Intellectual Property.

Section 2.9 Placement Agents. The Company has taken no action that would give rise to
any claim by any person for brokerage commissions, placement agent’s fees or similar payments
relating to this Agreement or the transactions contemplated hereby, except for dealings with the
Placement Agents, whose commissions and fees will be paid by the Company.

Section 2.10 Investment Company. The Company is not and, after giving effect to the
offering and sale of the Securities, will not be an “investment company” as such term is defined in
the Investment Company Act of 1940, as amended (the “Investment Company Act”). The Company shall
conduct its business in a manner so that it will not become subject to the Investment Company Act.

Section 2.11 No Material Adverse Change. Since June 30, 2005, except as described or
referred to in the SEC Documents and except for cash expenditures in the ordinary course of
business, there has not been a Material Adverse Effect. Since June 30, 2005, (i) there has not
been any dividend or distribution of any kind declared, set aside for payment, paid or made by the
Company on any class of capital stock, (ii) the Company has not sustained any material loss or
interference with the Company’s business from fire, explosion, flood or other calamity, whether or
not covered by insurance, or from any labor disturbance or dispute or any action, order or decree
of any court or arbitrator or governmental or regulatory authority, and (iii) the Company has not
incurred any liabilities except in the ordinary course of business.

Section 2.12 Nasdaq National Market. The issued and outstanding shares of Common
Stock are listed on Nasdaq, and, to the Company’s knowledge, there are no proceedings to revoke or
suspend such listing. The Company is in compliance in all material respects with the requirements
of Nasdaq for continued listing of the Common Stock thereon and any other Nasdaq listing and
maintenance requirements.

Section 2.13 Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company
acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s
length purchaser with respect to this Agreement and the transactions contemplated hereby. The
Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the
Company (or in any similar capacity with respect to the Company) with respect to this Agreement and
the transactions contemplated hereby and any advice given by any Purchaser or any of their
respective representatives or agents to the Company in connection with this Agreement and the
transactions contemplated hereby is merely incidental to such Purchaser’s purchase of the
Securities. The Company further represents to each Purchaser that the Company’s decision to enter
into this Agreement has been based upon the independent evaluation of the transactions contemplated
hereby by the Company and its representatives.

Section 2.14 Accountants. KPMG LLP, who will express their opinion with respect to
the audited financial statements and schedules to be included as a part of the Registration
Statement prior to the filing of the Registration Statement, are independent accountants as
required by the Securities Act.

Section 2.15 Insurance. The Company is insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as the Company believes are
prudent and customary for a company (i) in the businesses and location in which the Company is
engaged, (ii) with the resources of the Company, and (iii) at a similar stage of development as the
Company. The Company has not received any written notice that the Company will not be able to
renew its existing insurance coverage as and when such coverage expires. The Company believes it
will be able to obtain similar coverage at reasonable cost from similar insurers as may be
necessary to continue its business.

Section 2.16 Foreign Corrupt Practices. Since January 1, 2004, neither the Company,
nor to the Company’s knowledge, any director, officer, agent, employee or other person acting on
behalf of the Company has, in the course of its actions for, or on behalf of, the Company (i) used
any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses
relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or
domestic government official or employee from corporate funds; (iii) violated or is in violation of
in any material respect any provision of the U.S. Foreign Corrupt Practices Act of 1977, as
amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other
unlawful payment to any foreign or domestic government official or employee.

Section 2.17 Private Placement. Neither the Company nor any person acting on its or
their behalf, has, directly or indirectly, made any offers or sales of any security or solicited
any offers to buy any security, under any circumstances that would require registration of the
Securities under the Securities Act.

Section 2.18 No Registration Rights. No person has the right to (i) prohibit the
Company from filing the Registration Statement or (ii) other than as disclosed in the SEC
Documents, require the Company to register any securities for sale under the Securities Act by
reason of the filing of the Registration Statement. The granting and performance of the
registration rights under this Agreement will not violate or conflict with, or result in a breach
of any provision of, or constitute a default under, any agreement, indenture or instrument to which
the Company is a party.

Section 2.19 Taxes. The Company has filed (or has obtained an extension of time
within which to file) all necessary federal, state and foreign income and franchise tax returns and
has paid all taxes shown as due on such tax returns, except where the failure to so file or the
failure to so pay would not reasonably be expected to have a Material Adverse Effect.

Section 2.20 Real and Personal Property. The Company has good and marketable title
to, or has valid rights to lease or otherwise use, all items of real and personal property that are
material to the business of the Company free and clear of all liens, encumbrances, claims and
defects and imperfections of title except those that (i) do not materially interfere with the use
of such property by the Company or (ii) would not reasonably be expected to have a Material Adverse
Effect.

Section 2.21 Application of Takeover Protections. The execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby will not impose any
restriction on any Purchaser, or create in any party (including any current stockholder of the
Company) any rights, under any share acquisition, business combination, poison pill (including any
distribution under a rights agreement), or other similar anti-takeover provisions under the
Company’s charter documents or the laws of its state of incorporation.

Section 2.22 No Manipulation of Stock. The Company has not taken, nor will it take,
directly or indirectly any action designed to stabilize or manipulate of the price of the Common
Stock or any security of the Company to facilitate the sale or resale of any of the Shares.

Section 2.23 Related Party Transactions. Except with respect to the transactions (i)
that are not required to be disclosed and (ii) contemplated hereby to the extent any director or an
affiliate of any director purchases Securities hereunder, all transactions that have occurred
between or among the Company, on the one hand, and any of its officers or directors, or any
affiliate or affiliates of any such officer or director, on the other hand, prior to the date
hereof have been disclosed in the SEC Documents.

ARTICLE III

Purchaser’s Representations And Warranties

Each Purchaser represents and warrants to the Company, severally and not jointly, with respect
to itself and its purchase hereunder, that:

Section 3.1 Investment Purpose. The Purchaser is purchasing the Securities for its
own account and not with a present view toward the public sale or distribution thereof and has no
intention of selling or distributing any of such Securities or any arrangement or understanding
with any other persons regarding the sale or distribution of such Securities except in accordance
with the provisions of Article 6 and except as would not result in a violation of the Securities
Act. The Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or otherwise
dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of
the Securities except in accordance with the provisions of Article 6 or pursuant to and in
accordance with the Securities Act.

Section 3.2 Questionnaires. The Stock Certificate and Warrant Questionnaire and the
Registration Statement Questionnaire submitted by Purchaser to the Company in connection with its
purchase of the Securities was accurate and correct when delivered and is accurate and correct as
of the date hereof.

Section 3.3 Reliance on Exemptions. The Purchaser understands that the Securities are
being offered and sold to it in reliance upon specific exemptions from the registration
requirements of United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Purchaser’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in
order to determine the availability of such exemptions and the eligibility of the Purchaser to
acquire the Securities.

Section 3.4 Information. The Purchaser has been furnished with all relevant materials
relating to the business, finances and operations of the Company necessary to make an investment
decision, and materials relating to the offer and sale of the Securities, that have been requested
by the Purchaser, including, without limitation, the Company’s SEC Documents, and the Purchaser has
had the opportunity to review the SEC Documents. The Purchaser has been afforded the opportunity
to ask questions of the Company. Neither such inquiries nor any other investigation conducted by
or on behalf of such Purchaser or its representatives or counsel shall modify, amend or affect such
Purchaser’s right to rely on the truth, accuracy and completeness of the SEC Documents and the
Company’s representations and warranties contained herein.

Section 3.5 Acknowledgement of Risk. (a) The Purchaser acknowledges and understands
that its investment in the Securities involves a significant degree of risk, including, without
limitation, (i) the Company remains a development stage business with limited operating history and
requires substantial funds in addition to the proceeds from the sale of the Securities; (ii) an
investment in the Company is speculative, and only Purchasers who can afford the loss of their
entire investment should consider investing in the Company and the Securities; (iii) the Purchaser
may not be able to liquidate its investment; (iv) transferability of the Securities is extremely
limited; (v) in the event of a disposition of the Securities, the Purchaser could sustain the loss
of its entire investment; and (vi) the Company has not paid any dividends on its Common Stock since
inception and does not anticipate the payment of dividends in the foreseeable future. Such risks
are more fully set forth in the SEC Documents;

(b) The Purchaser is able to bear the economic risk of holding the Securities for an
indefinite period, and has knowledge and experience in financial and business matters such that it
is capable of evaluating the risks of the investment in the Securities; and

(c) The Purchaser has, in connection with the Purchaser’s decision to purchase Securities, not
relied upon any representations or other information (whether oral or written) other than as set
forth in the representations and warranties of the Company contained herein, and the Purchaser has,
with respect to all matters relating to this Agreement and the offer and sale of the Securities,
relied solely upon the advice of such Purchaser’s own counsel and has not relied upon or consulted
any counsel to the Placement Agents or counsel to the Company.

Section 3.6 Governmental Review. The Purchaser understands that no United States
federal or state agency or any other government or governmental agency has passed upon or made any
recommendation or endorsement of the Securities or an investment therein.

Section 3.7 Transfer or Resale. The Purchaser understands that:

(a) the Securities have not been and are not being registered under the Securities Act (other
than as contemplated in Article 6) or any applicable state securities laws and, consequently, the
Purchaser may have to bear the risk of owning the Securities for an indefinite period of time
because the Securities may not be transferred unless (i) the resale of the Securities is registered
pursuant to an effective registration statement under the Securities Act, as contemplated in
Article 6; (ii) the Purchaser has delivered to the Company an opinion of counsel (in form,
substance and scope reasonably satisfactory to the Company) to the effect that the Securities to be
sold or transferred may be sold or transferred pursuant to an exemption from such registration; or
(iii) the Securities are sold or transferred pursuant to Rule 144;

(b) any sale of the Securities made in reliance on Rule 144 may be made only in accordance
with the terms of Rule 144 and, if Rule 144 is not applicable, any resale of the Securities under
circumstances in which the seller (or the person through whom the sale is made) may be deemed to be
an underwriter (as that term is defined in the Securities Act) may require compliance with some
other exemption under the Securities Act or the rules and regulations of the SEC thereunder; and

(c) except as set forth in Article 6, neither the Company nor any other person is under any
obligation to register the resale of the Shares or the Warrant Shares under the Securities Act or
any state securities laws or to comply with the terms and conditions of any exemption thereunder.

Section 3.8 Legends. (a) The Purchaser understands the certificates representing the
Securities will bear a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of the certificates for such Securities):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE SECURITIES
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS, OR UNLESS
OFFERED, SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THOSE LAWS. THE COMPANY SHALL BE ENTITLED TO REQUIRE AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED TO THE EXTENT THAT SUCH
OPINION IS REQUIRED PURSUANT TO THAT CERTAIN SECURITIES PURCHASE AGREEMENT UNDER WHICH THE
SECURITIES WERE ISSUED.

(b) The Purchaser may request that the Company remove, and the Company agrees to authorize the
removal of any legend from the Shares and Warrant Shares (i) following any sale of the Shares or
Warrant Shares pursuant to an effective Registration Statement or Rule 144, or (ii) if such Shares
or Warrant Shares are eligible for sale under Rule 144(k). Following the time a legend is no longer
required for the Shares or Warrant Shares hereunder, the Company will, no later than five Business
Days following the delivery by a Purchaser to the Company or the Company’s transfer agent of a
legended certificate representing such securities, deliver or cause to be delivered to such
Purchaser a certificate representing such securities that is free from all restrictive and other
legends. If unlegended certificates are not delivered to such Purchaser within such five Business
Day period, the Company shall pay such Purchaser liquidated damages in an amount equal to 1.0% of
the aggregate Purchase Price of the Shares or Warrant Shares evidenced by such certificate for each
30 day period (or portion thereof) beyond such five Business Days that the unlegended certificates
have not been so delivered.

Section 3.9 Authorization; Enforcement. The Purchaser has the requisite power and
authority to enter into this Agreement and to consummate the transactions contemplated hereby. The
Purchaser has taken all necessary action to authorize the execution, delivery and performance of
this Agreement. Upon the execution and delivery of this Agreement, this Agreement shall constitute
a valid and binding obligation of the Purchaser enforceable in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ and contracting parties’ rights generally and except as
enforceability may be subject to general principles of equity and except as rights to indemnity and
contribution may be limited by state or federal securities laws or public policy underlying such
laws.

Section 3.10 Residency. The Purchaser is a resident of the jurisdiction set forth
immediately below such Purchaser’s name on the signature pages hereto.

Section 3.11 No Short Sales. Between the time the Purchaser learned about the
Offering and the public announcement of the Offering, the Purchaser has not engaged in any short
sales or similar transactions with respect to the Common Stock, nor has the Purchaser, directly or
indirectly, caused any Person to engage in any short sales or similar transactions with respect to
the Common Stock.

Section 3.12 Acknowledgements Regarding Placement Agent. The Purchaser acknowledges
that the Placement Agents are acting as the exclusive placement agents on a “best efforts” basis
for the Securities being offered hereby and will be compensated by the Company for acting in such
capacity. The Purchaser represents that (i) the Purchaser was contacted regarding the sale of the
Securities by the Placement Agent (or an authorized agent or representative thereof) with whom the
Purchaser entered into a confidentiality agreement and (ii) no Securities were offered or sold to
it by means of any form of general solicitation or general advertising.

ARTICLE IV

Covenants

Section 4.1 Reporting Status. The Company’s Common Stock is registered under Section
12 of the Exchange Act. During the Registration Period (or within the periods permitted under Rule
12b-25 of the Exchange Act), the Company will timely file with the SEC all reports required to be
so filed under the Exchange Act, and the Company will not terminate its status as an issuer
required to file reports under the Exchange Act even if the Exchange Act or the rules and
regulations thereunder would permit such termination.

Section 4.2 Expenses. The Company and each Purchaser is each severally and not
jointly liable for, and each will pay, its own expenses incurred in connection with the
negotiation, preparation, execution and delivery of this Agreement, including, without limitation,
attorneys’ and consultants’ fees and expenses.

Section 4.3 Financial Information. The financial statements of the Company to be
included in any documents filed with the SEC will be prepared in accordance with accounting
principles generally accepted in the United States, consistently applied (except (i) as may be
otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of
unaudited interim statements, to the extent they may not include footnotes, may be condensed or
summary statements or may conform to the SEC’s rules and instructions for Reports on Form 10-Q),
and will fairly present in all material respects the consolidated financial position of the Company
and consolidated results of its operations and cash flows as of, and for the periods covered by,
such financial statements (subject, in the case of unaudited statements, to normal and recurring
year-end audit adjustments).

Section 4.4 Securities Laws Disclosure; Publicity. On or before 9:30 a.m., New York
local time, on September 22, 2005 the Company shall issue a press release announcing the signing of
this Agreement and describing the material terms of the transactions contemplated by this
Agreement. On or before September 26, 2005, the Company shall file a Current Report on Form 8-K
with the SEC describing the terms of the transactions contemplated by this Agreement and including
as an exhibit to such Current Report on Form 8-K this Agreement, in the form required by the
Exchange Act. The Company shall not otherwise publicly disclose the name of any Purchaser, or
include the name of any Purchaser in any filing with the Commission (other than the Registration
Statement and any exhibits to filings made in respect of this transaction in accordance with
periodic filing requirements under the Exchange Act) or any regulatory agency, without the prior
written consent of such Purchaser, except to the extent such disclosure is required by law or
regulations, in which case the Company shall provide the Purchasers with prior notice of such
disclosure.

Section 4.5 Sales by Purchasers. Each Purchaser will sell any Securities held by it
in compliance with applicable prospectus delivery requirements, if any, or otherwise in compliance
with the requirements for an exemption from registration under the Securities Act and the rules and
regulations promulgated thereunder. No Purchaser will make any sale, transfer or other disposition
of the Securities in violation of federal or state securities laws.

Section 4.6 Reservation of Common Stock. The Company shall reserve and keep available
at all times during which the Warrants remain exercisable, free of preemptive rights, a sufficient
number of shares of Common Stock for the purpose of enabling the Company to issue Warrant Shares
pursuant to this Agreement.

Section 4.7 Pledge of Securities. The Company acknowledges and agrees that the
Securities may be pledged by a Purchaser in connection with a bona fide margin agreement or
other loan or financing arrangement that is secured by the Securities. The pledge of Securities
shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no
Purchasers effecting a pledge of the Securities shall be required to provide the Company with any
notice thereof or otherwise make any delivery to the Company pursuant to this Agreement; provided
that a Purchaser and its pledgee shall comply with the provisions of this Agreement in order to
effect a sale, transfer, or assignment of any such Securities to such pledgee. At the expense of
the Purchaser pledging such Securities, the Company hereby agrees to execute and deliver such
documentation as pledgee of the Securities may reasonably request in connection with a pledge of
the Securities to such pledgee by a Purchaser.

ARTICLE V

Conditions To Closing

Section 5.1 Conditions to Obligations of the Company. The Company’s obligation to
complete the purchase and sale of the Securities and deliver such stock certificate(s) and Warrants
to each Purchaser is subject to the fulfillment or waiver as of the Closing Date of the following
conditions:

(a) Receipt of Funds. The Company shall have received immediately available funds in
the full amount of the purchase price for the Shares and Warrants being purchased hereunder as set
forth opposite such Purchaser’s name on Exhibit A hereto.

(b) Representations and Warranties. The representations and warranties made by each
Purchaser in Article 3 shall be true and correct in all material respects as of the Closing Date.

(c) Covenants. All covenants, agreements and conditions contained in this Agreement
to be performed by the Purchasers on or prior to the Closing Date shall have been performed or
complied with in all material respects.

(d) Blue Sky. The Company shall have obtained all necessary blue sky law permits and
qualifications, or secured exemptions therefrom, required by any state for the offer and sale of
the Securities.

(e) Absence of Litigation. No proceeding challenging this Agreement or the
transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the
Closing, shall have been instituted or be pending before any court, arbitrator, governmental body,
agency or official.

(f) No Governmental Prohibition. The sale of the Securities by the Company shall not
be prohibited by any law or governmental order or regulation.

(g) No Stop Order. No stop order or suspension of trading shall have been imposed by
Nasdaq, the SEC or any other governmental or regulatory body with respect to public trading in the
Common Stock.

Section 5.2 Conditions to Purchasers’ Obligations at the Closing. Each Purchaser’s
obligation to complete the purchase and sale of the Shares and Warrants is subject to the
fulfillment or waiver as of the Closing Date of the following conditions:

(a) Representations and Warranties. The representations and warranties made by the
Company in Article 2 shall be true and correct in all material respects as of the Closing Date.

(b) Covenants. All covenants, agreements and conditions contained in this Agreement
to be performed by the Company on or prior to the Closing Date shall have been performed or
complied with in all material respects.

(c) Blue Sky. The Company shall have obtained all necessary blue sky law permits and
qualifications, or secured exemptions therefrom, required by any state or foreign or other
jurisdiction for the offer and sale of the Shares.

(d) Legal Opinion. The Company shall have delivered to such Purchaser an opinion,
dated as of the Closing Date, from Covington & Burling, counsel to the Company, in substantially
the form attached hereto as Exhibit C hereto.

(e) Transfer Agent Instructions. The Company shall have delivered to its transfer
agent irrevocable instructions to issue to such Purchaser or in such nominee name(s) as designated
by such Purchaser in writing such number of Shares set forth opposite such Purchaser’s name on
Exhibit A hereto or, if requested by the Purchaser, one or more certificates representing such
Shares, and Warrants to purchase the Warrant Shares.

(f) Absence of Litigation. No proceeding challenging this Agreement or the
transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the
Closing, shall have been instituted or be pending before any court, arbitrator, governmental body,
agency or official.

(g) No Governmental Prohibition. The sale of the Shares by the Company shall not be
prohibited by any law or governmental order or regulation.

(h) No Stop Order. No stop order or suspension of trading shall have been imposed by
Nasdaq, the SEC or any other governmental or regulatory body with respect to public trading in the
Common Stock.

(i) Minimum Aggregate Investment. The Company shall have received at the Closing at
least $30,000,000 of aggregate proceeds from the sale of Shares and Warrants hereunder.

ARTICLE VI

Registration Rights

Section 6.1 Filing of Registration Statement. As soon as reasonably practicable, but
in no event later than 30 days after the Closing Date (the “Filing Date”), the Company shall file a
registration statement covering the resale of the Registrable Securities (as defined in Section
7.1) on a registration statement (the “Registration Statement”) with the SEC and effect the
registration, qualifications or compliances (including, without limitation, the execution of any
required undertaking to file post-effective amendments, appropriate qualifications or exemptions
under applicable blue sky or other state securities laws and appropriate compliance with applicable
securities laws, requirements or regulations) as promptly as possible after the filing thereof, but
in any event prior to the date which is 90 days after the Closing Date. The Registration Statement
will be on Form S-3; provided that if Form S-3 is not available for use by the Company on the
Filing Date, then the Registration Statement will be on such form as is then available.

Section 6.2 Expenses. All Registration Expenses incurred in connection with any
registration, qualification, exemption or compliance pursuant to Section 6.1 shall be borne by the
Company. All Selling Expenses relating to the sale of securities registered by or on behalf of any
Holder shall be borne by such Holder.

Section 6.3 Registration Defaults. The Company further agrees that, in the event that
the Registration Statement (i) has not been filed with the SEC within 30 days after the Closing
Date, (ii) has not been declared effective by the SEC within 90 days after the Closing Date, or
(iii) after the Registration Statement is declared effective by the SEC, is suspended by the
Company or ceases to remain continuously effective as to all Registrable Securities for which it is
required to be effective, other than, in each case, within the time period(s) permitted by Section
6.7(b) (each such event referred to in clauses (i), (ii) and (iii), (a “Registration Default”)),
for any thirty-day period (a “Penalty Period”) during which the Registration Default remains
uncured (which initial thirty-day period shall commence on the fifth Business Day after the date of
such Registration Default if such Registration Default has not been cured by such date), the
Company shall pay to each Purchaser 1% of such Purchaser’s aggregate purchase price of his or her
Shares and Warrants for each Penalty Period during which the Registration Default remains uncured;
provided, however, that if a Purchaser fails to provide the Company with any information that is
required to be provided in the Registration Statement with respect to such Purchaser as set forth
herein, then the commencement of the Penalty Period described above shall be extended until two
Business Days following the date of receipt by the Company of such required information; provided
further that the amount payable to any Holder hereunder for any partial Penalty Period shall be
prorated for the number of actual days during such Penalty Period during which a Registration
Default remains uncured. The Company shall deliver said cash payment to the Purchaser by the fifth
Business Day after the end of such Penalty Period. If the Company fails to pay said cash payment
to the Purchasers in full by the fifth Business Day after the end of such Penalty Period, the
Company will pay interest thereon at a rate of 10% per annum (or such lesser maximum amount that is
permitted to be paid by applicable law) to the Purchasers, accruing daily from the date such
liquidated damages are due until such amounts, plus all such interest thereon, are paid in full.

Section 6.4 Registration Period Covenants. In the case of the registration,
qualification, exemption or compliance effected by the Company pursuant to this Agreement, the
Company shall, upon reasonable request, inform each Holder as to the status of such registration,
qualification, exemption and compliance. At its expense during the Registration Period the Company
shall:

(a) except for such times as the Company is permitted hereunder to suspend the use of the
prospectus forming part of the Registration Statement, use its commercially reasonable efforts to
keep such registration, and any qualification, exemption or compliance under state securities laws
that the Company determines to obtain, continuously effective with respect to a Holder, and to keep
such Registration Statement free of any material misstatements or omissions, until the earlier of
the following: (i) the second anniversary of the Closing Date or (ii) the date all Shares and
Warrant Shares held by such Holder may be sold under Rule 144 during any 90 day period. The period
of time during which the Company is required hereunder to keep the Registration Statement effective
is referred to herein as the “Registration Period.”

(b) advise the Holders:

(i) within two Business Days when the Registration Statement or any amendment thereto
has been filed with the SEC and when the Registration Statement or any post-effective
amendment thereto has become effective;

(ii) within five Business Days of any request by the SEC for amendments or supplements
to the Registration Statement or the prospectus included therein or for additional
information;

(iii) within five Business Days of the issuance by the SEC of any stop order suspending
the effectiveness of the Registration Statement or the initiation of any proceedings for
such purpose;

(iv) within five Business Days of the receipt by the Company of any notification with
respect to the suspension of the qualification of the Registrable Securities included
therein for sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose; and

(v) within five Business Days of the occurrence of any event that requires the making
of any changes in the Registration Statement or the prospectus so that, as of such date, the
statements therein are not misleading and do not omit to state a material fact required to
be stated therein or necessary to make the statements therein (in the case of the
prospectus, in the light of the circumstances under which they were made) not misleading;

(c) use its commercially reasonable efforts to obtain the withdrawal of any order suspending
the effectiveness of any Registration Statement as soon as reasonably practicable;

(d) promptly deliver to each such Holder, without charge, as many copies of the prospectus
included in such Registration Statement and any amendment or supplement thereto as such Holder may
reasonably request in writing; and the Company consents to the use, consistent with the provisions
hereof, of the prospectus or any amendment or supplement thereto by each of the selling Holders of
Registrable Securities in connection with the offering and sale of the Registrable Securities
covered by the prospectus or any amendment or supplement thereto;

(e) if a Holder so requests in writing, deliver to each Holder, without charge, (i) one copy
of the following documents, other than those documents available via EDGAR: (A) its annual report
to its stockholders, if any (which annual report shall contain financial statements audited in
accordance with generally accepted accounting principles in the United States of America by a firm
of certified public accountants of recognized standing), (B) if not included in substance in its
annual report to stockholders, its annual report on Form 10-K (or similar form), (C) its definitive
proxy statement with respect to its annual meeting of stockholders, (D) each of its quarterly
reports to its stockholders, and, if not included in substance in its quarterly reports to
stockholders, its quarterly report on Form 10-Q (or similar form), and (E) a copy of the full
Registration Statement (the foregoing, in each case, excluding exhibits); and (ii) if explicitly
requested, all exhibits excluded by the parenthetical to the immediately preceding clause (E);

(f) prior to any public offering of Registrable Securities pursuant to any Registration
Statement, promptly take such actions as may be necessary to register or qualify or obtain an
exemption for offer and sale under the securities or blue sky laws of such United States
jurisdictions as any such Holders reasonably request in writing, provided that the Company shall
not for any such purpose be required to qualify generally to transact business as a foreign
corporation in any jurisdiction where it is not so qualified or to consent to general service of
process in any such jurisdiction, and do any and all other acts or things reasonably necessary or
advisable to enable the offer and sale in such jurisdictions of the Registrable Securities covered
by such Registration Statement;

(g) upon the occurrence of any event contemplated by Section 6.4(b)(v) above, except for such
times as the Company is permitted hereunder to suspend the use of the prospectus forming part of
the Registration Statement, the Company shall use its commercially reasonable efforts to as soon as
reasonably practicable prepare a post-effective amendment to the Registration Statement or a
supplement to the related prospectus, or file any other required document so that, as thereafter
delivered to purchasers of the Registrable Securities included therein, the prospectus will not
include any untrue statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they were made, not
misleading;

(h) otherwise use its commercially reasonable efforts to comply in all material respects with
all applicable rules and regulations of the SEC which could affect the sale of the Registrable
Securities;

(i) use its commercially reasonable efforts to cause all Registrable Securities to be listed
on each securities exchange or market, if any, on which equity securities issued by the Company
have been listed;

(j) use its commercially reasonable efforts to take all other steps necessary to effect the
registration of the Registrable Securities contemplated hereby and to enable the Holders to sell
Registrable Securities under Rule 144;

(k) provide to each Purchaser and its representatives, if requested, the opportunity to
conduct a reasonable inquiry of the Company’s financial and other records during normal business
hours and make available on reasonable prior notice and during normal business hours its officers,
directors and employees for questions regarding information which such Purchaser may reasonably
request in order to fulfill any due diligence obligation on its part; and

(l) permit a single counsel for the Purchasers to review the Registration Statement and all
amendments and supplements thereto, within two Business Days prior to the filing thereof with the
Commission;

provided that, in the case of clauses (k) and (l) above, the Company shall not be required (A) to
delay the filing of the Registration Statement or any amendment or supplement thereto as a result
of any ongoing diligence inquiry by or on behalf of a Holder or to receive any comments to the
Registration Statement or any amendment or supplement thereto by or on behalf of a Holder if such
inquiry or comments would require or result in a delay in the filing of such Registration
Statement, amendment or supplement, as the case may be, or (B) to provide, and shall not provide,
any Purchaser or its representatives with material, non-public information unless such Purchaser
agrees to receive such information and enters into a written confidentiality agreement with the
Company in a form reasonably acceptable to the Company.

Section 6.5 Certain Limitations. The Holders shall have no right to take any action
to restrain, enjoin or otherwise delay any registration pursuant to Section 6.1 hereof as a result
of any controversy that may arise with respect to the interpretation or implementation of this
Agreement.

Section 6.6 Indemnity. (a) To the extent permitted by law, the Company shall
indemnify each Holder and each person controlling such Holder within the meaning of Section 15 of
the Securities Act, with respect to which any registration that has been effected pursuant to this
Agreement, against all claims, losses, damages and liabilities (or action in respect thereof),
including any of the foregoing incurred in settlement of any litigation, commenced or threatened
(subject to Section 6.6(c) below), arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in the Registration Statement, prospectus, any
amendment or supplement thereof, or other document incident to any such registration, qualification
or compliance or based on any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, in light
of the circumstances in which they were made, or any violation by the Company of any rule or
regulation promulgated by the Securities Act applicable to the Company and relating to any action
or inaction required of the Company in connection with any such registration, qualification or
compliance, and will reimburse each Holder and each person controlling such Holder, for reasonable
legal and other out-of-pocket expenses reasonably incurred in connection with investigating or
defending any such claim, loss, damage, liability or action as incurred; provided that the Company
will not be liable in any such case to the extent that any untrue statement or omission or
allegation thereof is made in reliance upon and in conformity with written information furnished to
the Company by or on behalf of such Holder for use in preparation of such Registration Statement,
prospectus, amendment or supplement; provided further that the Company will not be liable in any
such case where the claim, loss, damage or liability arises out of or is related to the failure of
such Holder to comply with the covenants and agreements contained in this Agreement respecting
sales of Registrable Securities, and except that the foregoing indemnity agreement is subject to
the condition that, insofar as it relates to any such untrue statement or alleged untrue statement
or omission or alleged omission made in the preliminary prospectus but eliminated or remedied in
the amended prospectus on file with the SEC at the time the Registration Statement becomes
effective or in the amended prospectus filed with the SEC pursuant to Rule 424(b) or in the
prospectus subject to completion under Rule 434 of the Securities Act, which together meet the
requirements of Section 10(a) of the Securities Act (the “Final Prospectus”), such indemnity shall
not inure to the benefit of any such Holder or any such controlling person, if a copy of the Final
Prospectus furnished by the Company to the Holder for delivery was not furnished to the person or
entity asserting the loss, liability, claim or damage at or prior to the time such furnishing is
required by the Securities Act and the Final Prospectus would have cured the defect giving rise to
such loss, liability, claim or damage.

(b) Each Holder will severally, and not jointly, indemnify the Company, each of its directors
and officers, and each person who controls the Company within the meaning of Section 15 of the
Securities Act, against all claims, losses, damages and liabilities (or actions in respect
thereof), including any of the foregoing incurred in settlement of any litigation, commenced or
threatened (subject to Section 6.6(c) below), arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in the Registration Statement, prospectus,
or any amendment or supplement thereof, incident to any such registration, or based on any omission
(or alleged omission) to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, in light of the circumstances in which they were
made, and will reimburse the Company, such directors and officers, and each person controlling the
Company for reasonable legal and any other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability or action as incurred, in each
case to the extent, but only to the extent, that such untrue statement or omission or allegation
thereof is made in reliance upon and in conformity with written information furnished to the
Company by or on behalf of the Holder for use in preparation of the Registration Statement,
prospectus, amendment or supplement; provided that the indemnity shall not apply to the extent that
such claim, loss, damage or liability results from the fact that a current copy of the prospectus
was not made available to the person or entity asserting the loss, liability, claim or damage at or
prior to the time such furnishing is required by the Securities Act and the Final Prospectus would
have cured the defect giving rise to such loss, claim, damage or liability. Notwithstanding the
foregoing, a Holder’s aggregate liability pursuant to this subsection (b) shall be limited to the
net amount received by the Holder from the sale of the Registrable Securities giving rise to such
claims, losses, damages and liabilities (and actions in respect thereof).

(c) Each party entitled to indemnification under this Section 6.6 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may
be sought, and shall permit the Indemnifying Party (at its expense) to assume the defense of any
such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party,
who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified
Party (whose approval shall not unreasonably be withheld or delayed), and the Indemnified Party may
participate in such defense at such Indemnified Party’s expense; provided further that the failure
of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party
of its obligations under this Agreement, unless such failure is materially prejudicial to the
Indemnifying Party in defending such claim or litigation. An Indemnifying Party shall not be
liable for any settlement of an action or claim effected without its written consent (which consent
will not be unreasonably withheld or delayed). No Indemnifying Party, in its defense of any such
claim or litigation, shall, except with the consent (such consent not to be unreasonably withheld
or delayed) of the Indemnified Party consent to entry of any judgment or enter into any settlement
which does not include as an unconditional term thereof the giving by the claimant or plaintiff to
such Indemnified Party of a release from all liability in respect to such claim or litigation.

(d) If the indemnification provided for in this Section 6.6 is held by a court of competent
jurisdiction to be unavailable to an Indemnified Party or is insufficient to hold such Indemnified
Party harmless with respect to any loss, liability, claim, damage or expense referred to therein,
then the Indemnifying Party shall contribute to the amount paid or payable by such Indemnified
Party as a result of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the
Indemnified Party on the other in connection with the statements or omissions which resulted in
such loss, liability, claim, damage or expense as well as any other relevant equitable
considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission to state a material fact relates to information supplied by the
Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission. Notwithstanding
the foregoing, a Holder’s aggregate liability pursuant to this subsection (d) shall be limited to
the net amount received by the Holder from the sale of Registrable Securities giving rise to such
loss, liability, claim, damage or expense (or actions in respect thereof) less all other amounts
paid as damages in respect thereto.

Section 6.7 Additional Covenants and Agreements of the Holders. (a) Each Holder
agrees that, upon receipt of any notice from the Company of the happening of any event requiring
the preparation of a supplement or amendment to a prospectus relating to Registrable Securities so
that, as thereafter delivered to the Holders, such prospectus shall not contain an untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, each Holder will forthwith discontinue disposition of
Registrable Securities pursuant to the Registration Statement and prospectus contemplated by
Section 6.1 until its receipt of copies of the supplemented or amended prospectus from the Company
and, if so directed by the Company, each Holder shall deliver to the Company all copies, other than
permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable
Securities current at the time of receipt of such notice.

(b) Each Holder shall suspend, upon request of the Company, any disposition of Registrable
Securities pursuant to the Registration Statement and prospectus contemplated by Section 6.1 during
no more than two periods of no more than 30 calendar days each during any 12-month period to the
extent that the Board of Directors of the Company determines in good faith that the sale of
Registrable Securities under the Registration Statement would be reasonably likely to cause a
violation of the Securities Act or Exchange Act.

(c) As a condition to the inclusion of its Registrable Securities, each Holder shall furnish
to the Company such information regarding such Holder and the distribution proposed by such Holder
as the Company may reasonably request in writing, including completing a Registration Statement
questionnaire in the form provided by the Company, or as shall be required in connection with any
registration referred to in this Article 6.

(d) Each Holder hereby covenants with the Company (i) not to make any sale of the Registrable
Securities without effectively causing the prospectus delivery requirements under the Securities
Act to be satisfied, and (ii) if such Registrable Securities are to be sold by any method or in any
transaction other than on a national securities exchange, Nasdaq or in the over-the-counter market,
in privately negotiated transactions, or in a combination of such methods, to notify the Company at
least five Business Days prior to the date on which the Holder first offers to sell any such
Registrable Securities.

(e) Each Holder acknowledges and agrees that the Registrable Securities sold pursuant to the
Registration Statement are not transferable on the books of the Company unless the stock
certificate submitted to the transfer agent evidencing such Registrable Securities is accompanied
by a certificate reasonably satisfactory to the Company to the effect that (i) the Registrable
Securities have been sold in accordance with such Registration Statement and (ii) the requirement
of delivering a current prospectus has been satisfied.

(f) Each Holder agrees not to take any action with respect to any distribution deemed to be
made pursuant to such Registration Statement which would constitute a violation of Regulation M
under the Exchange Act or any other applicable rule, regulation or law.

(g) At the end of the Registration Period, the Holders shall discontinue sales of shares
pursuant to such Registration Statement upon receipt of notice from the Company of its intention to
remove from registration the shares covered by such Registration Statement which remain unsold, and
such Holders shall notify the Company of the number of shares registered which remain unsold
immediately upon receipt of such notice from the Company.

Section 6.8 Additional Covenants and Agreements of the Company. With a view to making
available to the Holders the benefits of certain rules and regulations of the SEC which at any time
permit the sale of the Registrable Securities to the public without registration, so long as the
Holders still own Registrable Securities, the Company shall use its reasonable best efforts to:

(a) make and keep public information available, as those terms are understood and defined in
Rule 144 under the Securities Act, at all times;

(b) file with the SEC in a timely manner all reports and other documents required of the
Company under the Exchange Act; and

(c) so long as a Holder owns any Registrable Securities, furnish to such Holder, upon any
reasonable request, a written statement by the Company as to its compliance with Rule 144 under the
Securities Act, and of the Exchange Act, a copy of the most recent annual or quarterly report of
the Company, and such other reports and documents of the Company as such Holder may reasonably
request in availing itself of any rule or regulation of the SEC allowing a Holder to sell any such
securities without registration.

Section 6.9 Assignment of Registration Rights. The rights to cause the Company to
register Registrable Securities granted to the Holders by the Company under Section 6.1 may be
assigned by a Holder in connection with a transfer by such Holder of all or a portion of its
Registrable Securities, provided, however, that (i) such transfer complies with all applicable
securities laws; (ii) such Holder gives prior written notice to the Company; and (iii) such
transferee agrees in writing to comply with the terms and provisions of this Agreement, and has
provided the Company with a completed Registration Statement Questionnaire in such form as is
reasonably requested by the Company. Except as specifically permitted by this Section 6.9, the
rights of a Holder with respect to Registrable Securities as set out herein shall not be
transferable to any other Person, and any attempted transfer shall cause all rights of such Holder
therein to be forfeited.

Section 6.10 Waiver of Registration Rights. The rights of any Holder under any
provision of this Article 6 may be waived (either generally or in a particular instance, either
retroactively or prospectively and either for a specified period of time or indefinitely) or
amended by an instrument in writing signed by Holders holding not less than a majority of the
Registrable Securities (including Warrant Shares issuable upon exercise of the Warrants); provided,
however, that no consideration shall be offered or paid to any person to amend or consent to a
waiver or modification of any provision of this Section 6 unless the same consideration also is
offered to all Holders of Registrable Securities.

ARTICLE VII

Definitions

Section 7.1 Definitions. The following capitalized terms have the following meanings:

“Affiliate” means, with respect to any Person (as defined below), any other Person
controlling, controlled by or under direct or indirect common control with such Person (for the
purposes of this definition “control,” when used with respect to any specified Person, shall mean
the power to direct the management and policies of such person, directly or indirectly, whether
through ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” shall have meanings correlative to the foregoing).

“Business Day” means a day Monday through Friday on which banks are generally open for
business in New York City.

“Bylaws” has the meaning set forth in Section 2.3.

“Certificate of Incorporation” has the meaning set forth in Section 2.3.

“Closing” has the meaning set forth in Section 1.3.

“Closing Date” has the meaning set forth in Section 1.3.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Filing Date” has the meaning set forth in Section 6.1.

“Final Prospectus” has the meaning set forth in Section 6.6(a).

“Financial Statements” means the financial statements of the Company included in the SEC
Documents.

“Holder” means any person holding Registrable Securities or any person to whom the rights
under Article 6 have been transferred in accordance with Section 6.9 hereof.

“Indemnified Party” has the meaning set forth in Section 6.6(c).

“Indemnifying Party” has the meaning set forth in Section 6.6(c).

“Intellectual Property” has the meaning set forth in Section 2.8.

“Material Adverse Effect” means a material adverse effect on (a) the business, operations,
assets, financial condition or prospects of the Company, taken as a whole, or (b) the ability of
the Company to perform its obligations pursuant to the transactions contemplated by this Agreement.

“Nasdaq” means The Nasdaq National Market.

“Offering” means the private placement of the Company’s Securities contemplated by this
Agreement.

“Penalty Period” has the meaning set forth in Section 6.3.

“Person” means any person, individual, corporation, limited liability company, partnership,
trust or other nongovernmental entity or any governmental agency, court, authority or other body
(whether foreign, federal, state, local or otherwise).

“Placement Agents” means, collectively, Banc of America Securities LLC and Fortis Securities
Inc.

“Purchasers” mean the Purchasers whose names are set forth on the signature pages of this
Agreement, and their permitted transferees.

“Purchase Price” has the meaning set forth in Section 1.1.

“register,” “registered” and “registration” refer to the registration effected by preparing
and filing a registration statement in compliance with the Securities Act, and the declaration or
ordering of the effectiveness of such registration statement.

“Registrable Securities” means (i) the Shares and (ii) the Warrant Shares; provided, however,
that securities shall only be treated as Registrable Securities if and only for so long as they (A)
have not been disposed of pursuant to a registration statement declared effective by the SEC, (B)
have not been sold in a transaction exempt from the registration and prospectus delivery
requirements of the Securities Act so that all transfer restrictions and restrictive legends with
respect thereto are removed upon the consummation of such sale or (C) are held by a Holder or a
permitted transferee pursuant to Section 6.9.

“Registration Default” has the meaning set forth in Section 6.3.

“Registration Expenses” means all expenses incurred by the Company in complying with Section
6.1 hereof, including, without limitation, all registration, qualification and filing fees,
printing expenses, escrow fees, fees and expenses of counsel for the Company, blue sky fees and
expenses and the expense of any special audits incident to or required by any such registration
(but excluding the fees of legal counsel for any Holder).

“Registration Statement” has the meaning set forth in Section 6.1.

“Registration Period” has the meaning set forth in Section 6.4(a).

“Rule 144” means Rule 144 promulgated under the Securities Act, or any successor rule.

“SEC” means the United States Securities and Exchange Commission.

“SEC Documents” has the meaning set forth in Section 2.6.

“Securities” has the meaning set forth in Section 1.1.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any similar successor statute.

“Selling Expenses” means all selling commissions applicable to the sale of Registrable
Securities and all fees and expenses of legal counsel for any Holder.

“Shares” has the meaning set forth in Section 1.1.

“Warrant Shares” has the meaning set forth in Section 2.4.

“Warrants” has the meaning set forth in Section 1.1.

Section 7.2 Certain Interpretations. Except where expressly stated otherwise in this
Agreement, the following rules of interpretation apply to this Agreement: (i) “or” is not
exclusive and “include”, “includes” and “including” are not limiting; (ii) definitions contained in
this Agreement are applicable to the singular as well as the plural forms of such terms; (iii)
references to an agreement or instrument mean such agreement or instrument as from time to time
amended, modified or supplemented; (iv) references to a Person are also to its permitted successors
and assigns; (v) references to an “Article”, “Section”, “Subsection”, “Exhibit” or “Schedule” refer
to an Article of, a Section or Subsection of, or an Exhibit or Schedule to, this Agreement; and
(vi) words importing the masculine gender include the feminine or neuter and, in each case, vice
versa.

ARTICLE VIII

Governing Law; Miscellaneous

Section 8.1 Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement will be
governed by and interpreted in accordance with the laws of the State of New York without regard to
the principles of conflict of laws. Each of the parties hereto irrevocably submits and consents to
the exclusive jurisdiction of the courts of the State of New York located in New York County and
the United States District Court for the Southern District of New York for the purpose of any suit,
action, proceeding or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby. Each party hereto irrevocably waives any objection to the laying of venue of
any such suit, action or proceeding brought in such courts and irrevocably waives any claim that
any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION
WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO
THIS WAIVER.

Section 8.2 Counterparts; Signatures by Facsimile. This Agreement may be executed in
two or more counterparts, all of which are considered one and the same agreement and will become
effective when counterparts have been signed by each party and delivered to the other parties.
This Agreement, once executed by a party, may be delivered to the other parties hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so delivering this
Agreement.

Section 8.3 Headings. The headings of this Agreement are for convenience of reference
only, are not part of this Agreement and do not affect its interpretation.

Section 8.4 Severability. If any provision of this Agreement is invalid or
unenforceable under any applicable statute or rule of law, then such provision will be deemed
modified in order to conform with such statute or rule of law. Any provision hereof that may prove
invalid or unenforceable under any law will not affect the validity or enforceability of any other
provision hereof.

Section 8.5 Entire Agreement; Amendments. This Agreement (including all schedules and
exhibits hereto) and any confidentiality agreement entered into between the Company and a Purchaser
(which confidentiality agreement shall continue to be in full force and effect) constitutes the
entire agreement among the parties hereto with respect to the subject matter hereof and thereof.
There are no restrictions, promises, warranties or undertakings, other than those set forth or
referred to herein or therein. This Agreement supersedes all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof. No provision of this Agreement
may be waived or amended other than by an instrument in writing signed by the party to be charged
with enforcement. Any amendment or waiver effected in accordance with this Section 8.5 shall be
binding upon each holder of any Securities purchased under this Agreement at the time outstanding
(including securities into which such Securities are convertible and for which such Securities are
exercisable), each future holder of all such securities, and the Company.

Section 8.6 Notices. All notices required or permitted hereunder shall be in writing
and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b)
when sent by confirmed email, telex or facsimile if sent during normal business hours of the
recipient, if not, then on the next business day, (c) five days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (d) one business day
after deposit with a nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt. The addresses for such communications are:

	 	 	 	If to the Company: Memory Pharmaceuticals Corp.

	 	 	 
	100 Philips Parkway

Montvale, NJ 07645

	 	

	 
	 	 
	Attn: Vice President — Legal Affairs

	 
	 	 
	With a copy to:

	 	Covington & Burling

1330 Avenue of the Americas

New York, NY 10019

Attn: Ellen B. Corenswet

If to a Purchaser: To the address set forth immediately below such Purchaser’s name on the
signature pages hereto. Each party will provide ten days’ advance written notice to the other
parties of any change in its address.

Section 8.7 Successors and Assigns. This Agreement is binding upon and inures to the
benefit of the parties and their successors and assigns. The Company will not assign this
Agreement or any rights or obligations hereunder without the prior written consent of the
Purchasers, and no Purchaser may assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Company, except as permitted in accordance with Section
6.9 hereof.

Section 8.8 Third Party Beneficiaries. This Agreement is intended for the benefit of
the parties hereto, their respective permitted successors and assigns and the Placement Agents, and
is not for the benefit of, nor may any provision hereof be enforced by, any other person.

Section 8.9 Further Assurances. Each party will do and perform, or cause to be done
and performed, all such further acts and things, and will execute and deliver all other agreements,
certificates, instruments and documents, as another party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

Section 8.10 No Strict Construction. The language used in this Agreement is deemed to
be the language chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

Section 8.11 Equitable Relief. The Company recognizes that if it fails to perform or
discharge any of its obligations under this Agreement, any remedy at law may prove to be inadequate
relief to the Purchasers. The Company therefore agrees that the Purchasers are entitled to seek
temporary and permanent injunctive relief in any such case. Each Purchaser also recognizes that,
if it fails to perform or discharge any of its obligations under this Agreement, any remedy at law
may prove to be inadequate relief to the Company. Each Purchaser therefore agrees that the Company
is entitled to seek temporary and permanent injunctive relief in any such case.

Section 8.12 Survival of Representations and Warranties. Notwithstanding any
investigation made by any party to this Agreement, all representations and warranties made by the
Company and the Purchasers herein shall survive for a period of one year following the date hereof.

Section 8.13 Independent Nature of Purchasers’ Obligations and Rights. The
obligations of each Purchaser under this Agreement are several and not joint with the obligations
of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser under this Agreement. Nothing contained herein and no action
taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Purchasers are in any way acting in concert or as a group, or are deemed affiliates (as
such term is defined under the Exchange Act) with respect to such obligations or the transactions
contemplated by this Agreement. Each Purchaser shall be entitled to independently protect and
enforce its rights, including without limitation the rights arising out of this Agreement, and it
shall not be necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose.

[Signature Page Follows]

1

In Witness Whereof, the undersigned Purchasers and the Company have caused
this Agreement to be duly executed as of the date first above written.

Memory Pharmaceuticals Corp.

By: /s/ James R. Sulat

Name: James R. Sulat

Title: President and Chief Executive Officer

Purchaser

(investor name)

By:

(signature)

(print name and title)

Address:

Facsimile:

2

EXHIBIT A

SCHEDULE OF PURCHASERS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Aggregate Purchase
	Purchaser	 	Shares	 	Warrants	 	Price
	Oxford Bioscience Partners II (Annex) L.P.
	 	 	526,316	 	 	 	184,210	 	 	$	1,000,000.40	 
	Oxford Bioscience Partners IV L.P.
	 	 	2,605,437	 	 	 	911,902	 	 	$	4,950,330.30	 
	mRNA Fund II L.P.
	 	 	26,142	 	 	 	9,149	 	 	$	49,669.80	 
	Special Situations Fund III, LP
	 	 	1,684,211	 	 	 	589,473	 	 	$	3,200,000.90	 
	Special Situations Cayman Fund, LP
	 	 	421,053	 	 	 	147,368	 	 	$	800,000.70	 
	Special Situations Private Equity Fund LP
	 	 	789,474	 	 	 	276,315	 	 	$	1,500,000.60	 
	Special Situations Life Sciences Fund LP
	 	 	263,158	 	 	 	92,105	 	 	$	500,000.20	 
	SF Capital Partners Ltd.
	 	 	1,578,948	 	 	 	552,631	 	 	$	3,000,001.20	 
	Venrock Associates
	 	 	323,684	 	 	 	113,289	 	 	$	614,999.60	 
	Venrock Associates II, L.P.
	 	 	465,789	 	 	 	163,026	 	 	$	884,999.10	 
	Anthony B. Evnin
	 	 	184,211	 	 	 	64,473	 	 	$	350,000.90	 
	Alta California Partners II, L.P.
	 	 	259,875	 	 	 	90,956	 	 	$	493,762.50	 
	Alta California Partners II, L.P. — New Pool
	 	 	526,316	 	 	 	184,210	 	 	$	1,000,000.40	 
	Alta Embarcadero Partners II, LLC
	 	 	3,283	 	 	 	1,149	 	 	$	6,237.70	 
	SRB Greenway Capital, L.P.
	 	 	42,684	 	 	 	14,939	 	 	$	81,099.60	 
	SRB Greenway Capital (QP), L.P.
	 	 	297,948	 	 	 	104,281	 	 	$	566,101.20	 
	SRB Greenway Offshore Operating Fund L.P.
	 	 	27,790	 	 	 	9,726	 	 	$	52,801.00	 
	Walker Smith Capital, L.P.
	 	 	17,947	 	 	 	6,281	 	 	$	34,099.30	 
	Walker Smith Capital (QP) L.P.
	 	 	103,105	 	 	 	36,086	 	 	$	195,899.50	 
	Walker Smith International Fund, Ltd.
	 	 	142,105	 	 	 	49,736	 	 	$	269,999.50	 
	Capital Ventures International
	 	 	527,000	 	 	 	184,450	 	 	$	1,001,300.00	 
	Adviesbeheer GIMV Life Sciences NV
	 	 	78,947	 	 	 	27,631	 	 	$	149,999.30	 
	GIMV NV
	 	 	447,369	 	 	 	156,579	 	 	$	850,001.10	 
	GLS LP Investment 1 Limited
	 	 	526,316	 	 	 	184,210	 	 	$	1,000,000.40	 
	Smithfield Fiduciary LLC
	 	 	526,316	 	 	 	184,210	 	 	$	1,000,000.40	 
	RAQ, LLC
	 	 	157,895	 	 	 	55,263	 	 	$	300,000.50	 
	Aries Domestic Fund, L.P.
	 	 	210,000	 	 	 	73,500	 	 	$	399,000.00	 
	Aries Domestic Fund II, L.P.
	 	 	36,842	 	 	 	12,894	 	 	$	69,999.80	 
	Aries Master Fund II
	 	 	121,579	 	 	 	42,552	 	 	$	231,000.10	 
	RHP Master Fund, Ltd.
	 	 	526,316	 	 	 	184,210	 	 	$	1,000,000.40	 
	Enable Growth Partners L.P.
	 	 	340,000	 	 	 	119,000	 	 	$	646,000.00	 
	Enable Opportunity Partners L.P.
	 	 	54,736	 	 	 	19,157	 	 	$	103,998.40	 
	WPG-Farber Fund, L.P.
	 	 	154,000	 	 	 	53,900	 	 	$	292,600.00	 
	WPG-Farber QP Fund, L.P.
	 	 	59,675	 	 	 	20,886	 	 	$	113,382.50	 
	WPG-Farber Institutional Fund L.P.
	 	 	51,425	 	 	 	17,998	 	 	$	97,707.50	 
	WPG-Farber Overseas, L.P.
	 	 	9,900	 	 	 	3,465	 	 	$	18,810.00	 
	D3 LifeScience Ltd.
	 	 	131,579	 	 	 	46,052	 	 	$	250,000.10	 
	D3 LifeScience Select Ltd.
	 	 	131,579	 	 	 	46,052	 	 	$	250,000.10	 
	Southridge Partners LP
	 	 	263,158	 	 	 	92,105	 	 	$	500,000.20	 
	Kings Road Investments, Ltd.
	 	 	263,158	 	 	 	92,105	 	 	$	500,000.20	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Aggregate Purchase
	Purchaser
	 	Shares	 	Warrants	 	Price
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Nite Capital LP
	 	 	157,895	 	 	 	55,263	 	 	$	300,000.50	 
	Keyes / Sulat Revocable Trust
	 	 	157,895	 	 	 	55,263	 	 	$	300,000.50	 
	Walter Gilbert
	 	 	52,632	 	 	 	18,421	 	 	$	100,000.80	 
	Anthony Scullion
	 	 	39,474	 	 	 	13,815	 	 	$	75,000.60	 
	David A. Lowe
	 	 	26,316	 	 	 	9,210	 	 	$	50,000.40	 
	Michael E. Meyers
	 	 	26,316	 	 	 	9,210	 	 	$	50,000.40	 
	Robert I. Kriebel
	 	 	5,000	 	 	 	1,750	 	 	$	9,500.00	 
	Banc of America Strategic Investments Corporation
	 	 	591,491	 	 	 	207,021	 	 	$	1,123,832.90	 
	Fortis Securities LLC
	 	 	147,873	 	 	 	51,755	 	 	$	280,958.70	 
	Total
	 	 	16,112,158	 	 	 	5,639,232	 	 	$	30,613,100.20	 

3

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE
SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS
OR UNLESS OFFERED, SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS. THE COMPANY SHALL BE ENTITLED TO REQUIRE AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED TO THE EXTENT
THAT AN OPINION IS REQUIRED PURSUANT TO THE AGREEMENT UNDER WHICH THE SECURITIES WERE ISSUED.

MEMORY PHARMACEUTICALS CORP.

WARRANT TO PURCHASE COMMON STOCK

No. W-     September 23, 2005

Void After September 22, 2010

This Certifies That, for value received,      , with its principal
office at      , or its successors and permitted assigns (the “Holder”), is
entitled to subscribe for and purchase at the Exercise Price (defined below) from Memory
Pharmaceuticals Corp., a Delaware corporation, with its principal office at 100 Philips Parkway,
Montvale, New Jersey 07645 (the “Company”) up to      shares of the common stock of the
Company, par value $.001 per share (the “Common Stock”), subject to adjustment as provided herein.
This Warrant is one of a series of Warrants being issued pursuant to the terms of the Securities
Purchase Agreement, dated September 21, 2005, among the Company and the original Holder of this
Warrant and the other parties named therein (the “Purchase Agreement”). Capitalized terms not
otherwise defined herein shall have the respective meanings ascribed to such terms in the Purchase
Agreement.

1. Definitions. As used herein, the following terms shall have the meanings
ascribed to them below:

(a) “Exercise Period” shall mean the period commencing 180 days after the date hereof and
ending September 22, 2010 at 5:00 p.m., unless sooner exercised or terminated as provided below.

(b) “Exercise Price” shall mean $2.22 per share, subject to adjustment pursuant to Section 5
below.

(c) “Warrant Shares” shall mean the shares of the Common Stock issued upon exercise of this
Warrant, subject to adjustment pursuant to the terms herein, including but not limited to
adjustment pursuant to Section 5 below.

2. Exercise of Warrant. 

2.1 Method of Exercise. The rights represented by this Warrant may be exercised in whole or
in part at any time during the Exercise Period, by delivery of the following to the Company at its
address set forth above (or at such other address as it may designate by notice in writing to the
Holder):

(a) an executed Notice of Exercise in the form attached hereto;

(b) payment of the Exercise Price either (i) in cash or by check or wire transfer of
immediately available funds, or (ii) pursuant to a Cashless Exercise, as described below; and

(c) this Warrant.

Upon the exercise of the rights represented by this Warrant, shares of Common Stock shall be issued
for the Warrant Shares so purchased, and shall be registered in the name of the Holder or persons
affiliated with the Holder, if the Holder so designates, within a reasonable time after the rights
represented by this Warrant shall have been so exercised and shall be issued in certificate form
and delivered to the Holder, if so requested.

The person in whose name any Warrant Shares are to be issued upon exercise of this Warrant shall be
deemed to have become the holder of record of such shares on the date on which this Warrant was
surrendered and payment of the Exercise Price was made, irrespective of the date of issuance of the
shares of Common Stock, except that, if the date of such surrender and payment is a date when the
stock transfer books of the Company are closed, such person shall be deemed to have become the
holder of such shares at the close of business on the next succeeding date on which the stock
transfer books are open.

2.2 Cashless Exercise. Notwithstanding any provisions herein to the contrary, if, at any time
during the Exercise Period, the Current Market Price (as defined below) of one share of Common
Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu
of exercising this Warrant by payment of cash, the Holder may exercise this Warrant by a cashless
exercise by surrender of this Warrant at the principal office of the Company together with the
properly endorsed Notice of Exercise and the Company shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

	 	 	 	 	 
	
 
	 	X = Y (B-A)
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	Where:

	 	B

X =
	 	

the number of shares of Common Stock to be issued to the Holder.

	 	 	 	Y = the number of shares of Common Stock purchasable upon
exercise of all of the Warrant or, if only a portion of the Warrant is being
exercised, the portion of the Warrant being exercised.

	 	 	 
	A =

B =

	 	the Exercise Price.

the Current Market Price of one share of Common Stock.

	 	 	 	“Current Market Price” means on any particular date:

(a) if the Common Stock is traded on the Nasdaq SmallCap Market or the Nasdaq National Market,
the average of the closing prices of the Common Stock on such market over the five trading days
ending immediately prior to the applicable date of valuation;

(b) if the Common Stock is traded on any registered national stock exchange but is not traded
on the Nasdaq SmallCap Market or the Nasdaq National Market, the average of the closing prices of
the Common Stock on such exchange over the five trading days ending immediately prior to the
applicable date of valuation

(c) if the Common Stock is traded over-the-counter, but not on the Nasdaq SmallCap Market, the
Nasdaq National Market or a registered national stock exchange, the average of the closing bid
prices over the 30-day period ending immediately prior to the applicable date of valuation; and

(d) if there is no active public market for the Common Stock, the value thereof, as determined
in good faith by the Board of Directors of the Company upon due consideration of the proposed
determination thereof by the Holder.

2.3 Partial Exercise. If this Warrant is exercised in part only, the Company shall, upon
surrender of this Warrant, execute and deliver, within 10 days of the date of exercise, a new
Warrant evidencing the rights of the Holder, or such other person as shall be designated in the
Notice of Exercise, to purchase the balance of the Warrant Shares purchasable hereunder. In no
event shall this Warrant be exercised for a fractional Warrant Share, and the Company shall not
distribute a Warrant exercisable for a fractional Warrant Share. Fractional Warrant Shares shall
be treated as provided in Section 6 hereof.

2.4 Delivery. Certificates for shares purchased hereunder shall be transmitted by the
transfer agent of the Company to the Holder by crediting the account of the Holder’s prime broker
with the Depository Trust Company through its Deposit Withdrawal Agent Commission system if the
Company is a participant in such system (and so long as the legend may be removed in accordance
with Section 3.8(b) of the Purchase Agreement), and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise.

3. Covenants of the Company.

3.1 Covenants as to Warrant Shares. The Company covenants and agrees that if at any time
during the Exercise Period the number of authorized but unissued shares of Common Stock shall not
be sufficient to permit exercise of this Warrant, the Company will take such corporate action as
may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of
Common Stock (or other securities as provided herein) to such number of shares as shall be
sufficient for such purposes.

3.2 No Impairment. Except and to the extent as waived or consented to by the Holder or
otherwise in accordance with Section 10 hereof, the Company will not, by amendment of its
Certificate of Incorporation (as such may be amended from time to time), or through any means,
avoid or seek to avoid the observance or performance of any of the terms to be observed or
performed hereunder by the Company, but will at all times in good faith assist in the carrying out
of all the provisions of this Warrant and in the taking of all such action as may be necessary or
appropriate in order to protect the exercise rights of the Holder against impairment.

3.3 Notices of Record Date. In the event of any taking by the Company of a record of the
holders of any class of securities for the purpose of determining the holders thereof who are
entitled to receive any dividend (other than a cash dividend which is the same as cash dividends
paid in previous quarters) or other distribution, the Company shall mail to the Holder, at least
ten days prior to the date specified herein, a notice specifying the date on which any such record
is to be taken for the purpose of such dividend or distribution.

4. Representations of Holder.

4.1 Acquisition of Warrant for Personal Account. The Holder represents and warrants that it
is acquiring the Warrant and the Warrant Shares solely for its account and not with a present view
toward the public or distribution of said Warrant or Warrant Shares or any part thereof and has no
intention of selling or distributing said Warrant or Warrant Shares or any arrangement or
understanding with any other persons regarding the sale or distribution of said Warrant or, except
in accordance with the provisions of Article 6 of the Purchase Agreement, the Warrant Shares, and
except as would not result in a violation of the Securities Act. The Holder will not, directly or
indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy,
purchase or otherwise acquire or take a pledge of) the Warrant except in accordance with the
Securities Act and will not, directly or indirectly, offer, sell, pledge, transfer or otherwise
dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) the
Warrant Shares except in accordance with the provisions of Article 6 of the Purchase Agreement or
pursuant to and in accordance with the Securities Act.

4.2 Securities Are Not Registered.

(a) The Holder understands that the offer and sale of the Warrant or the Warrant Shares have
not been registered under the Securities Act on the basis that no distribution or public offering
of the stock of the Company is to be effected. The Holder realizes that the basis for the
exemption may not be present if, notwithstanding its representations, the Holder has a present
intention of acquiring the securities for a fixed or determinable period in the future, selling (in
connection with a distribution or otherwise), granting any participation in, or otherwise
distributing the securities. The Holder has no such present intention.

(b) The Holder recognizes that the Warrant and the Warrant Shares must be held indefinitely
unless they are subsequently registered under the Securities Act or an exemption from such
registration is available. The Holder recognizes that the Company has no obligation to register
the Warrant or, except as provided in the Purchase Agreement, the Warrant Shares, or to comply with
any exemption from such registration.

(c) The Holder is aware that neither the Warrant nor the Warrant Shares may be sold pursuant
to Rule 144 adopted under the Securities Act unless certain conditions are met, including, among
other things, the existence of a public market for the shares, the availability of certain current
public information about the Company, the resale following the required holding period under Rule
144 and the number of shares being sold during any three month period not exceeding specified
limitations. Holder is aware that any such sale made in reliance on Rule 144, if Rule 144 is
available, may be made only in accordance with the terms of Rule 144.

4.3 Disposition of Warrant and Warrant Shares.

(a) The Holder understands that the Warrants and the Warrant Shares have not been and are not
being registered under the Securities Act (other than as contemplated in Article 6 of the Purchase
Agreement) or any applicable state securities laws and, consequently, the Purchaser may have to
bear the risk of owning the Warrant and the Warrant Shares for an indefinite period of time because
such securities may not be transferred unless (i) the resale of such securities is registered
pursuant to an effective registration statement under the Securities Act; (ii) the Holder has
delivered to the Company an opinion of counsel (in form, substance and scope reasonably
satisfactory to the Company) to the effect that the Warrants or Warrant Shares to be sold or
transferred may be sold or transferred pursuant to an exemption from such registration; or (iii)
such securities are sold or transferred pursuant to Rule 144

(b) The Holder understands and agrees that all certificates evidencing the Warrant Shares to
be issued to the Holder may bear a legend in substantially the following form:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES. THE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS, OR UNLESS OFFERED,
SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THOSE LAWS. THE COMPANY SHALL BE ENTITLED TO
REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED TO THE EXTENT THAT SUCH OPINION IS REQUIRED PURSUANT TO THAT CERTAIN
SECURITIES PURCHASE AGREEMENT UNDER WHICH THE SECURITIES WERE ISSUED.

5. Adjustment of Exercise Price. In the event of changes in the outstanding
Common Stock of the Company by reason of stock dividends, split-ups, recapitalizations,
reclassifications, combinations or exchanges of shares, separations, reorganizations, liquidations,
or the like (other than as set forth in Section 7), the number and class of shares available under
the Warrant in the aggregate and the Exercise Price shall be correspondingly adjusted to give the
Holder, on exercise for the same aggregate Exercise Price, the total number, class, and kind of
shares as the Holder would have owned had the Warrant been exercised prior to the event and had the
Holder continued to hold such shares until after the event requiring adjustment. The form of this
Warrant need not be changed because of any adjustment in the number, class, and kind of shares
subject to this Warrant. The Company shall promptly provide a certificate from its Chief Executive
Officer notifying the Holder in writing of any adjustment in the Exercise Price and/or the total
number, class, and kind of shares issuable upon exercise of this Warrant, which certificate shall
specify the Exercise Price and number, class and kind of shares under this Warrant after giving
effect to such adjustment.

6. Fractional Shares. No fractional shares shall be issued upon the
exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Warrant Shares
(including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of
determining whether the exercise would result in the issuance of any fractional share. If, after
aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in
lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum
in cash equal to the product resulting from multiplying the fair market value of the Common Stock
on the date of exercise of the Warrant by such fraction.

7. Certain Events. In the event of, at any time during the Exercise Period,
any capital reorganization, or any reclassification of the capital stock of the Company (other than
a change in par value or from par value to no par value or no par value to par value or as a result
of a stock dividend or subdivision, split-up or combination of shares), or the consolidation or
merger of the Company with or into another corporation (other than a merger solely to effect a
reincorporation of the Company into another state), in each case, in which the stockholders of the
Company immediately prior to such capital reorganization, reclassification, consolidation or
merger, will hold less than a majority of the outstanding shares of the Company or resulting
corporation immediately after such capital reorganization, reclassification, consolidation or
merger, or the sale or other disposition of all or substantially all of the properties and assets
of the Company and its subsidiaries, taken as a whole, in its entirety to any other person, other
than sales or other dispositions that do not require stockholder approval (each, an “Event”), then,
as a condition of such Event, lawful and adequate provision shall be made whereby each Holder shall
thereafter have the right to purchase and receive upon the basis and upon the terms and conditions
herein specified and in lieu of the Warrant Shares immediately theretofore issuable upon exercise
of the Warrant, such shares of stock, securities or assets as would have been issuable or payable
with respect to or in exchange for a number of Warrant Shares equal to the number of Warrant Shares
immediately theretofore issuable upon exercise of the Warrant, had such Event not taken place, and
in any such case appropriate provision shall be made with respect to the rights and interests of
each Holder to the end that the provisions hereof (including, without limitation, provision for
adjustment of the Exercise Price) shall thereafter be applicable, as nearly equivalent as may be
practicable in relation to any shares of stock, securities or assets thereafter deliverable upon
the exercise hereof. The Company shall not effect any such Event unless prior to or simultaneously
with the consummation thereof the successor corporation (if other than the Company) resulting from
such consolidation or merger, or the corporation purchasing or otherwise acquiring such assets or
other appropriate corporation or entity shall assume the obligation to deliver to the Holder, at
the last address of the Holder appearing on the books of the Company, such shares of stock,
securities or assets as, in accordance with the foregoing provisions, the Holder may be entitled to
purchase, and the other obligations under this Warrant. The provisions of this Section 7 shall
similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales,
transfers or other dispositions.

8. No Stockholder Rights. This Warrant in and of itself shall not entitle
the Holder to any voting rights or other rights as a stockholder of the Company.

9. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost,
stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it
may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender
thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen,
mutilated or destroyed. Any such new Warrant shall constitute an original contractual obligation
of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be
at any time enforceable by anyone.

10. Modifications and Waiver. This Warrant and any provision hereof may be
changed, waived, discharged or terminated only by an instrument in writing signed by the Company
and (i) Purchasers holding Warrants representing a majority of the number of Warrant Shares then
issuable upon exercise of the then unexercised Warrants, provided, however, that such modification,
amendment or waiver is made with respect to all unexercised Warrants issued pursuant to the
Purchase Agreement and does not adversely affect the Holder without adversely affecting all holders
of Warrants in a similar manner; or (ii) the Holder.

11. Notices, etc. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the party to be
notified, (b) when sent by confirmed email, telex or facsimile if sent during normal business hours
of the recipient, if not, then on the next business day, (c) five days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (d) one business day
after deposit with a nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent to the Company at the address
listed on the signature page and to the Holders at the addresses on the Company records, or at such
other address as the Company or Holder may designate by ten days’ advance written notice to the
other party hereto.

12. Acceptance. Receipt of this Warrant by the Holder shall constitute
acceptance of and agreement to all of the terms and conditions contained herein.

13. Governing Law. This Warrant and all rights, obligations and liabilities
hereunder shall be governed by the laws of the State of New York without regard to the principles
of conflict of laws. The Company and the Holder each irrevocably submit and consent to the
exclusive jurisdiction of the courts of the State of New York located in New York County and the
United States District Court for the Southern District of New York for the purpose of any suit,
action, proceeding or judgment relating to or arising out of this Warrant. The Company and the
Holder each irrevocably waive any objection to the laying of venue of any such suit, action or
proceeding brought in such courts and irrevocably waive any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum. THE COMPANY AND
EACH HOLDER WAIVE ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS
WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

14. Descriptive Headings. The descriptive headings of the several
paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this
Warrant. The language in this Warrant shall be construed as to its fair meaning without regard to
which party drafted this Warrant.

15. Severability.  The invalidity or unenforceability of any provision of
this Warrant in any jurisdiction shall not affect the validity or enforceability of such provision
in any other jurisdiction, or affect any other provision of this Warrant, which shall remain in
full force and effect.

[Signature Page Follows]

4

In Witness Whereof, the Company has caused this Warrant to be executed by its duly
authorized officer as of September 23, 2005.

	 	 	 
	Memory Pharmaceuticals Corp.

	 
	 	 
	By:

	 	

	 

	 	 
	Name:

	 	

	 

	 	 
	Title:

	 	

	 

	 	 
	Address:

	 	100 Philips Parkway

Montvale, NJ 07645

Attention: President and Chief Executive
Officer

Facsimile: (201) 802-7190

5

NOTICE OF EXERCISE

TO: Memory Pharmaceuticals Corp.

(1) The undersigned hereby elects to (check one box only):

• purchase      shares of the Common Stock of Memory Pharmaceuticals Corp. (the
“Company”) pursuant to the terms of the attached Warrant, and tenders herewith payment of
the exercise price in full for such shares, together with all applicable transfer taxes, if
any.

• purchase the number of shares of Common Stock of the Company by cashless exercise
pursuant to the terms of the Warrant as shall be issuable upon cashless exercise of the
portion of the Warrant relating to      shares, and shall tender payment of all
applicable transfer taxes, if any.

(2) Please issue a certificate or certificates representing said shares of Common Stock in the
name of the undersigned or in such other name as is specified below:

(Name)

(Address)

(3) The undersigned represents that (i) the aforesaid shares of Common Stock are being
acquired for the account of the undersigned for investment and not with a view to, or for resale in
connection with, the distribution thereof and that the undersigned has no present intention of
distributing or reselling such shares; (ii) the undersigned is aware of the Company’s business
affairs and financial condition and has acquired sufficient information about the Company to reach
an informed and knowledgeable decision regarding its investment in the Company; (iii) the
undersigned is experienced in making investments of this type and has such knowledge and background
in financial and business matters that the undersigned is capable of evaluating the merits and
risks of this investment and protecting the undersigned’s own interests; (iv) the undersigned is
aware that the aforesaid shares of Common Stock may not be sold pursuant to Rule 144 adopted under
the Securities Act unless certain conditions are met and until the undersigned has held the shares
for the number of years prescribed by Rule 144, that among the conditions for use of the Rule is
the availability of current information to the public about the Company and the Company has not
made such information available and has no present plans to do so; and (v) the undersigned agrees
not to make any disposition of all or any part of the aforesaid shares of Common Stock unless and
until there is then in effect a registration statement under the Securities Act covering such
proposed disposition and such disposition is made in accordance with said registration statement,
or the undersigned has provided the Company with an opinion of counsel satisfactory to the Company,
stating that such registration is not required.

	 	 	 
	(Date)

	 	(Signature)

(Print name)
	 
	 	 

6

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