Document:

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                                                                   EXHIBIT 10.12

                                                                [EXECUTION COPY]

                          CONSENT AND FOURTH AMENDMENT

                            DATED AS OF JULY 31, 2002

                          THE WILLIAMS COMPANIES, INC.
                           MULTI-YEAR CREDIT AGREEMENT

                  CONSENT AND FOURTH AMENDMENT TO THE CREDIT AGREEMENT (this
"AGREEMENT"), dated as of July 31, 2002 is entered into by and among the
Borrowers party to the Credit Agreement (as hereinafter defined), the Banks from
time to time party to the Credit Agreement, the Co-Syndication Agents as named
therein, the Documentation Agent as named therein and Citibank, N.A., as agent
for the Banks (in such capacity, the "AGENT"). Except as otherwise defined or as
the context requires, terms defined in the Credit Agreement are used herein as
therein defined.

                                   WITNESSETH

                  WHEREAS, The Williams Companies, Inc., a Delaware corporation
("TWC"), Northwest Pipeline Corporation, a Delaware corporation ("NWP"),
Transcontinental Gas Pipe Line Corporation ("TGPL") a Delaware corporation, and
Texas Gas Transmission Corporation, a Delaware corporation ("TGT"; TWC, NWP,
TGPL and TGT each a "BORROWER" and collectively, the "BORROWERS") have entered
into a certain Credit Agreement dated as of July 25, 2000 with the financial
institutions from time to time party thereto (the "BANKS'), The Chase Manhattan
Bank and Commerzbank AG, as Co-Syndication Agents, Credit Lyonnais New York
Branch, as Documentation Agent, and Citibank, N.A., as Agent, as amended by a
letter agreement dated as of October 10, 2000, by a Waiver and First Amendment
to Credit Agreement dated as of January 31, 2001, by a Second Amendment to
Credit Agreement dated as of February 7, 2002 and by a Third Amendment to Credit
Agreement dated as of March 11, 2002 (the "CREDIT AGREEMENT").

                  WHEREAS, the Borrowers have requested that the Banks party
hereto, constituting not less than the Majority Banks, consent to the TWC Asset
Dispositions (as defined herein), and provide certain amendments to the terms
and conditions of the Credit Agreement;

                  WHEREAS, the Banks party hereto are willing to grant the
requests of the Borrowers as hereinafter set forth;

                  NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and subject to the
terms and conditions hereof, the parties hereto agree as follows:

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                  SECTION 1. Consent. The Banks party hereto consent to (i) the
sale by the Borrowers or by any of their Subsidiaries of (1) WPC (the "CENTRAL
PIPELINES ASSET DISPOSITION"), (2) MAPL (the "MAPL ASSET DISPOSITION"), (3)
Seminole (the "SEMINOLE ASSET DISPOSITION"), (4) the Refineries (the "REFINERIES
ASSET DISPOSITION"), (5) Soda Ash (the "SODA ASH ASSET DISPOSITION"), (6)
TravelCenters (the "TRAVELCENTERS ASSET DISPOSITION"), and (7) Bio-Energy (the
"BIO-ENERGY ASSET DISPOSITION", together with the Central Pipelines Asset
Disposition, MAPL Asset Disposition and Seminole Asset Disposition, Refineries
Asset Disposition, Soda Ash Disposition and TravelCenters Asset Disposition, the
"TWC ASSET DISPOSITIONS"), (ii) the LLC Guaranty, Midstream Guaranty, and the
Holdings Guaranty, and (iii) the execution and delivery of and performance by
RMT, TWC and RMT LLC and their subsidiaries party thereto of the Barrett Loan
Agreement and the transactions related thereto or contemplated thereby.

                  SECTION 2. Amendments to Credit Agreement. The Credit
Agreement is, effective as of the date hereof and subject to the satisfaction of
the Conditions of Effectiveness set forth in Section 3, hereby amended as
follows:

                  (a) Section 1.01 of the Credit Agreement is hereby amended by
         replacing the definition of "Chase" with the following:

                           "Chase" means JPMorgan Chase Bank.

                  (b) Section 1.01 of the Credit Agreement is hereby amended by
         deleting the following definitions thereto: "Permitted NWP Liens",
         "Permitted TGPL Liens", "Permitted TGT Liens" and "Permitted TWC
         Liens";

                  (c) Section 1.01 of the Credit Agreement is hereby amended by
         inserting, or replacing as applicable, the following definitions in
         proper alphabetical order:

                  "Acceptable Security Interest" in any property shall mean a
         Lien granted pursuant to a Credit Document (a) which exists in favor of
         either (i) the Collateral Trustee for the benefit of itself and other
         parties, as more fully described in the Collateral Trust Agreement, or
         (ii) the Collateral Agent for the benefit of itself, the Issuing Banks,
         the "Agent" and the "Banks" (each as defined in the L/C Agreement), (b)
         which is superior to all other Liens, except Permitted Liens, (c) which
         secures (i) the "Secured Obligations" (as defined in the Security
         Agreement), and/or (ii) the "Obligations" (as defined in the L/C
         Agreement), and (d) which is perfected and is enforceable by either (i)
         the Collateral Trustee for the benefit of itself and other parties, as
         more fully described in the Collateral Trust Agreement or (ii) the
         Collateral Agent, for the benefit of itself, the Issuing Banks, "Agent"
         and the "Banks" (each as defined in the L/C Agreement), against all
         other Persons in preference to any rights of any such other Person
         therein; provided that such Lien may be subject to the Agreed
         Exceptions.

                  "Agreed Exceptions" means exceptions to title to be set forth
         in the "Mortgage" (as defined in the L/C Agreement) that are customary
         in similar mortgages, do not

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         materially detract from the value of the assets covered thereby, do not
         secure Debt and arise in the ordinary course of business.

                  "Applicable Margin" means as to any Eurodollar Rate Advance or
         Base Rate Advance to any Borrower, the rate per annum set forth in the
         applicable table on Schedule XI under the heading "Applicable Margin"
         for the relevant Rating Category applicable to TWC. The Applicable
         Margin determined pursuant to this definition for any Eurodollar Rate
         Advance or Base Rate Advance, as applicable, shall change when and as
         the relevant Rating Category applicable to TWC changes.

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

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

                  "Barrett Loan" means the loans made pursuant Barrett Loan
         Agreement.

                  "Barrett Loan Agreement" means the Credit Agreement dated July
         31, 2002, among TWC, RMT LLC, RMT, the Lenders party thereto from time
         to time, Lehman Brothers Inc., as Arranger, and Lehman Commercial Paper
         Inc., as Syndication Agent and as Administrative Agent.

                  "Bio-Energy" means Williams Bio-Energy, L.L.C, Williams
         Ethanol Services, Inc., and Nebraska Energy, L.L.C.

                  "Capital Lease" means a lease that in accordance with
         generally acceptable accounting principles must be reflected on a
         company's balance sheet as an asset and corresponding liability.

                  "Cash Equivalents" means any of the following, to the extent
         owned by a Borrower or any of its Subsidiaries free and clear of all
         Liens other than Liens created under the L/C Collateral Documents and
         having a maturity of not greater than 270 days from the date of
         acquisition thereof: (a) readily marketable direct obligations of the
         Government of the United States or any agency or instrumentality
         thereof or obligations unconditionally guaranteed by the full faith and
         credit of the Government of the United States, (b) insured certificates
         of deposit of or time deposits with any commercial bank that is a
         Lender Party or a member of the Federal Reserve System, issues (or the
         parent of which issues) commercial paper rated as described in clause
         (c) below, is organized under the laws of the United States or any
         State thereof and has combined capital and surplus of at least $1
         billion or (c) commercial paper in an aggregate amount of no more than
         $500,000,000, per issuer outstanding at any time, issued by any
         corporation organized

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         under the laws of any State of the United States and rated at least
         "Prime-1" (or the then equivalent grade) by Moody's Investors Service,
         Inc. or "A-1" (or the then equivalent grade) by Standard & Poor's, a
         division of The McGraw-Hill Companies, Inc.

                  "Cash Flow" means, for any period, the Consolidated cash flow
         from operations of a Borrower and its Subsidiaries for such period
         determined in accordance with generally accepted accounting principles;
         provided that in determining such Consolidated cash flow from
         operations, there shall be excluded therefrom (to the extent otherwise
         included therein) (a) any positive cash flow from operations of any
         Person (including Project Financing Subsidiaries) subject to any
         restriction prohibiting the distribution of cash to such Borrower or
         any of its Subsidiaries, except and then only to the extent of the
         amount thereof that such Borrower or any of its Subsidiaries actually
         receives or has the right to receive (within the limits of such
         restrictions) during such period, (b) proceeds resulting from the sale,
         transfer or other disposition of any property by such Borrower or its
         Subsidiaries (other than sales, transfers and other dispositions in the
         ordinary course of business), (c) all other extraordinary items, (d)
         any item constituting the cumulative effect of a change in accounting
         principles, prior to applicable income taxes, (e) repayment of the WCG
         Synthetic Lease and (f) for the third Fiscal Quarter of 2002 only,
         margin and capital or adequate assurances relating to its refining and
         marketing and EMT.

                  "Citibank" means Citibank, N.A.

                  "Collateral" shall have the meaning specified in Section 1.1
         of the L/C Agreement.

                  "Collateral Agent" means Citibank in its capacity as
         "Collateral Agent" pursuant to the L/C Collateral Documents and the L/C
         Agreement.

                  "Collateral Trust Agreement" means that certain Collateral
         Trust Agreement dated as of July 31, 2002 by and among the TWC, several
         of its Subsidiaries and the Collateral Trustee.

                  "Collateral Trustee" means CUSA in its capacity as "Collateral
         Trustee" pursuant to the Collateral Trust Agreement.

                  "Consent and Fourth Amendment" means that certain Consent and
         Fourth Amendment dated as of July 31, 2002 among the Borrowers, Banks,
         Co-Syndication Agents, Document Agent, Agent and Arranger.

                  "Consolidated" refers to the consolidation of the accounts of
         any Person and its consolidated subsidiaries in accordance with
         generally accepted accounting principles.

                  "Contractual Obligation" means as to any Person, any provision
         of any security issued by such Person or of any agreement, instrument
         or other undertaking to which such Person is a party or by which it or
         any of its property is bound.

                  "Credit Documents" means this Agreement, the L/C Agreement,
         the L/C Collateral Documents, the Letter of Credit Documents, each
         Letter of Credit, all

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         documents, instruments, agreements, certificates and notices at any
         time executed and/or delivered to the Agent, any Issuing Bank, or any
         Bank in connection therewith.

                  "CUSA" means Citicorp USA, Inc.

                  "Debt" means, in the case of any Person, the principal or
         equivalent amount of (i) indebtedness of such Person for borrowed
         money, (ii) obligations of such Person evidenced by bonds, debentures,
         notes or similar instruments, (iii) obligations of such Person to pay
         the deferred purchase price of property or services (other than trade
         payables not overdue by more than 60 days incurred in the ordinary
         course of business), (iv) obligations of such Person as lessee under
         leases that are, in accordance with generally accepted accounting
         principles, recorded as capital leases, (v) payments necessary to
         exercise a purchase option with respect to the property used by such
         Person and encumbered by a Synthetic Lease with such Person as lessee,
         excluding any portion of such amount representing accrued interest,
         transfer taxes or other ancillary items, (vi) obligations of such
         Person under any Financing Transaction, (vii) indebtedness incurred
         after the date of the Consent and Fourth Amendment of the Subsidiaries
         of such Person, and indebtedness incurred after the date of this
         Agreement of any other entity that has been created or utilized,
         directly or indirectly, for financing purposes of such Person or any of
         its Subsidiaries, (viii) obligations of such Person under guaranties in
         respect of, and obligations (contingent or otherwise) to purchase or
         otherwise acquire, or otherwise to assure a creditor against loss in
         respect of indebtedness or obligations of others of the kinds referred
         to in clauses (i) through (vii) of this definition, (ix) indebtedness
         or obligations of others of the kinds referred to in clauses (i)
         through (viii) of this definition secured by any Lien on or in respect
         of any property of such Person and (x) any Attributable Obligations of
         such Person; provided, however, that Debt shall not include (w) any
         obligations of TWC in respect of the FELINE PACS; (x) Non-Recourse
         Debt; (y) Performance Guaranties, (z) monetary obligations or
         guaranties of monetary obligations of Persons as lessee under leases
         (other than, to the extent provided herein above, Synthetic Leases)
         that are, in accordance with generally accepted accounting principles,
         recorded as operating leases and (aa) guarantees by such Person of
         obligations of others which are not obligations described in clauses
         (i) through (x) of this definition, and provided further that where any
         such indebtedness or obligation of such Person is made jointly, or
         jointly and severally, with any third party or parties other than any
         Subsidiary of such Person, the amount thereof for the purpose of this
         definition only shall be the pro rata portion thereof payable by such
         Person, so long as such third party or parties have not defaulted on
         its or their joint and several portions thereof and can reasonably be
         expected to perform its or their obligations thereunder. For the
         avoidance of doubt, "Debt" shall not include the Letters of Credit.

                  "Designated Midstream Subsidiaries" means Nebraska Energy,
         L.L.C; Rio Grande Pipeline Company; Baton Rouge Fractionators, L.L.C;
         Williams Lynxs Alaska CargoPort, L.L.C; Tri-States NGL Pipeline, L.L.C;
         WILPRISE Pipeline Company, L.L.C.; Williams Mobile Bay Producer
         Services, L.L.C; Williams Energy Partners L. P.; Williams Alaska Air
         Cargo Properties, L.L.C; and Williams GP LLC.

                  "EMT" means Williams Energy Marketing & Trading Company.

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                  "Environmental Permits" mean any and all material permits,
         licenses, registrations, notifications, exemptions and any other
         authorization required under any Environmental Protection Statutes.

                  "Equity Interests" means any capital stock, partnership, joint
         venture, member or limited liability or unlimited liability company
         interest, beneficial interest in a trust or similar entity or other
         equity interest or investment of whatever nature.

                  "Excess Amount" has the meaning specified in Section 2.04(c).

                  "Excluded Collateral" means (i) all personal and real property
         owned by RMT LLC, WGPC and the Designated Midstream Subsidiaries and
         (ii) the Excluded Equity Interests.

                  "Excluded Equity Interests" means the Equity Interest in each
         of the Designated Midstream Subsidiaries (other than (i) Williams GP
         LLC and (ii) the Equity Interest of Williams Energy Partners L.P. held
         by Williams Energy Services, LLC and Williams Natural Gas Liquids,
         Inc.) provided, however, as to each Designated Midstream Subsidiary, at
         such time as the Company obtains the consents provided for in Paragraph
         13 of Schedule XIII the Equity Interest of such Designated Midstream
         Subsidiary shall cease to be an "Excluded Equity Interest".

                  "Financing Transaction" means, with respect to any Person, any
         individual or group of related Persons (i) prepaid forward sales of
         oil, gas, minerals or other assets by such Person, (ii) interest rate,
         currency, commodity or other swaps, collars, caps, options or other
         derivatives or (iii) sales or transfers of assets, the primary effect
         of which or an important purpose of which is to receive money or credit
         in advance coupled with an obligation to repay or perform in the future
         to effect repayment thereof, including any contract monetization or
         production payment. Notwithstanding the foregoing, the following
         transactions, if entered into in the ordinary course of business by any
         Borrower or any of its affiliates and otherwise permitted hereunder,
         shall be deemed not to be Financing Transactions: (a) sales or
         exchanges of property fully delivered within 90 days of receipt of the
         first payment by a counterparty therefor, (b) interest rate, currency,
         commodity or other swaps, collars, caps, options or other derivatives
         (including prepayment of forward sales of property by a counterparty of
         any Borrower or any of its affiliates to hedge against the credit risk
         of such counterparty, provided that the forward delivery obligation
         with respect to the property sold must be fully performed within 120
         days), and (c) "riskless" forward sales or exchanges of property
         whereby a third party guarantees the performance obligations of any
         Borrower or any of its affiliates to deliver such property without
         subrogation or other recourse against any Borrower or any of its
         affiliates by any party to the transaction. The term "contract
         monetization" as used in this definition means the acceleration of cash
         flows a contract party expects to receive from such contract pursuant
         to which the contract party retains a significant ongoing obligation to
         perform, but shall in any event exclude transactions commonly referred
         to as securitizations. The term "production payment" as used in this
         definition means a limited-term non-cost bearing right to receive
         produced hydrocarbons or the proceeds therefrom satisfiable in cash or
         in kind up to an aggregate defined amount of cash and/or hydrocarbons.

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                  "Fiscal Quarter" means any quarter of a Fiscal Year.

                  "Fiscal Year" means any period of twelve consecutive calendar
         months ending on December 31; references to a Fiscal Year with a number
         corresponding to any calendar year (e.g., the "2002 Fiscal Year") refer
         to the Fiscal Year ending on December 31 of such calendar year.

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

                  "Guaranties" means, collectively the LLC Guaranty, the
         Midstream Guaranty and the Holdings Guaranty.

                  "Hedge Agreements" means interest rate swap, cap or collar
         agreements, interest rate future or option contracts, currency swap
         agreements, currency future or option contracts and other hedging
         obligations.

                  "Holdings Guaranty" means that certain guaranty executed by
         RMT LLC in substantially the form of Exhibit J to the L/C Agreement, as
         amended, supplemented or modified from time to time.

                  "Hydrocarbons" means oil, gas, casinghead gas, condensate,
         distillate, and liquid hydrocarbons.

                  "Interest Expense" means, for any period, the gross interest
         expense (determined in accordance with generally accepted accounting
         principles) of a Borrower and its Consolidated Subsidiaries accrued for
         such period, including that attributable to the capitalized amount of
         obligations owing under Capital Leases, all debt discount amortized in
         such period and all commissions, discounts and other fees and charges
         owed with respect to letters of credit and bankers' acceptance
         financing, net of interest income (determined in accordance with
         generally accepted accounting principles) of a Borrower and its
         Consolidated Subsidiaries, but excluding such interest expense, debt
         discount, commissions, discounts and other fees and charges and
         interest income to the extent attributable to the Non-Recourse Debt of
         Project Financing Subsidiaries.

                  "Investment" in any Person means any loan or advance to such
         Person, any purchase or other acquisition of any Equity Interests or
         Debt or the assets comprising a division or business unit or a
         substantial part or all of the business of such Person, any capital
         contribution to such Person or any other direct or indirect investment
         in such Person, including, without limitation, any acquisition by way
         of a merger or consolidation and any arrangement pursuant to which the
         investor incurs Debt of the types referred to in clause (viii) or (ix)
         of the definition of "Debt" in respect of such Person.

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                  "Issuing Banks" means Citibank and Bank of America N.A. in
         their capacity as issuers of Letters of Credit.

                  "L/C Agreement" means that certain Credit Agreement as in
         effect on July 31, 2002 among TWC as "Borrower", the "Agent",
         "Collateral Agent", "Syndication Agent", "Issuing Banks", the
         "Arranger", and those certain financial institutions party thereto as
         "Banks".

                  "L/C Collateral Documents" means the "Security Documents" as
         defined in the L/C Agreement.

                  "L/C Facility" means the letter of credit facility under the
         L/C Agreement.

                  "Legacy L/C's" means those outstanding letters of credit as of
         July 31, 2002 as set forth on Schedule XV, to the extent such letters
         of credit have not been cash collateralized.

                  "Letter of Credit" has the meaning specified in Section 1.1 of
         the L/C Agreement.

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

                  "LLC Guaranty" means that certain guaranty executed by WGPC in
         substantially the form of exhibit G to the L/C Agreement, as amended,
         supplemented or modified from time to time.

                  "Major Subsidiary" means any Subsidiary of a Borrower with
         assets having a book value of $1,000,000,000 or more.

                  "MAPL" means Mid-America Pipeline Company, a Delaware
         corporation.

                  "MAPL Asset Disposition" means the sale, transfer or other
         distribution of the Equity Interests in or Assets of MAPL.

                  "Material Subsidiary" means (i) each Major Subsidiary and each
         other Subsidiary of a Borrower (other than a Project Financing
         Subsidiary) that itself (on an unconsolidated, stand alone basis) owns
         in excess of 5% of the book value of the Consolidated assets of a
         Borrower and its Consolidated Subsidiaries, (ii) each of TGPL, TGT and
         NWP and (iii) each Subsidiary that owns any direct or indirect interest
         in TGPL, TGT and NWP.

                  "Midstream Assets" means all assets now owned or hereafter
         acquired by TWC or any of its Subsidiaries, which are either
         individually, or in conjunction with other Midstream Assets, necessary
         for the conduct of the Midstream Business by TWC and its

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         Subsidiaries, including the Refineries in Alaska and Tennessee, except
         that "Midstream Assets" shall not include (a) the assets being part of
         either of the MAPL Asset Disposition or Seminole Asset Disposition,
         unless the MAPL Disposition or Seminole Asset Disposition, as
         applicable, shall not have occurred on or prior to the date that is 60
         days from the date of the Consent and Fourth Amendment and (b) any
         Assets of Williams GP LLC, Williams Energy Partners L.P. or any of
         their Subsidiaries.

                  "Midstream Asset MLP" means one or more master limited
         partnerships included in the Consolidated financial statements of TWC
         to which TWC has transferred or shall transfer certain assets relating
         to the Midstream Business as well as certain marine and inland
         terminals and related pipeline systems, including Williams Energy
         Partners L.P.

                  "Midstream Business" means the gathering, marketing,
         dehydrating, treating, processing, fractionating, refining, storing,
         selling and transporting of Hydrocarbons and Refined Hydrocarbons, and
         any business relating thereto.

                  "Midstream Guaranty" means that certain guaranty executed by
         those certain guarantors in substantially the form of exhibit H to the
         L/C Agreement, as amended, supplemented or modified from time to time.

                  "Midstream Subsidiaries" means each Subsidiary of TWC,
         excluding Williams Mobile Bay Producer Services, L.L.C., Williams GP
         LLC, Williams Energy Partners L.P., and each of their Subsidiaries, if
         any, engaged either in whole or in part in the Midstream Business that
         either (1) owns, leases or has possession of Midstream Assets that have
         an aggregate fair market value of $1,000,000 or more, or (2) owns,
         leases or has possession of any Midstream Asset or right that is
         material to the ownership, leasing or operation of the Midstream Assets
         taken as a whole.

                  "Net Cash Proceeds" means, with respect to any sale, transfer
         or other disposition of any asset or the sale or issuance of any equity
         interests (including, without limitation, any capital contribution) by
         any Person, the gross cash proceeds received (including any cash
         received by way of deferred payment pursuant to a promissory note,
         receivable or otherwise, but only as and when received) by or on behalf
         of such Person in connection with such transaction net of only (a)
         reasonable transaction costs, including customary and reasonable
         brokerage commissions, underwriting fees and discounts, legal fees,
         fees paid to accountants and financial advisors, finder's fees and
         other similar fees and commissions, (b) the amount of taxes payable in
         connection with or as a result of such transaction, (c) the amount of
         any Debt by the terms of the agreement or instrument governing such
         Debt (including, without limitation, the Barrett Loan Agreement), that
         is required to be repaid or cash collateralized in the case of letters
         of credit, upon such disposition, including any premium, make-whole or
         breakage amount related thereto, (d) payments of unassumed liabilities
         relating to the assets sold at the time of, or within 60 days after,
         the date of such sale, and provided that such gross proceeds shall not
         include any portion of such gross cash proceeds which a Borrower
         determines in good faith should be reserved for post-closing
         adjustments (including indemnification payments, tax expenses and
         purchase price adjustments, to the extent the Person delivers to the
         Agent a certificate signed by an Officer of such Person as to such
         determination), it

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         being understood and agreed that on the day that all such post-closing
         adjustments have been determined (which shall not be later than 120
         days following the date of the respective TWC Asset Disposition;
         provided, further that such 120-day period shall be extended to the
         extent any amount of such proceeds is subject to a good faith dispute
         or claim), the amount (if any) by which the reserved amount in respect
         of such sale or disposition exceeds the actual post-closing adjustments
         payable by such Person shall constitute Net Cash Proceeds on such date
         received by such Person from such sale, lease, transfer or other
         disposition.

                  "Net Worth" of any Person means, as of any date of
         determination, the excess of total assets of such Person plus all
         non-cash losses resulting from the write-down or disposition of the
         Trading Book over total liabilities of such Person, total assets and
         total liabilities each to be determined in accordance with generally
         accepted accounting principles; provided, however, that for purposes of
         calculating Net Worth, total liabilities shall not include any
         obligations of the Borrower in respect of the FELINE PACS.

                  "Non-Recourse Debt" means (i) any Debt incurred by any Project
         Financing Subsidiary to finance the acquisition (other than the
         acquisition from a Borrower or any Subsidiary of such Borrower that is
         not a Project Financing Subsidiary), improvement, installation, design,
         engineering, construction, development, completion, maintenance or
         operation of, or otherwise to pay costs and expenses relating to or
         providing financing for, a project listed on Schedule VI to the L/C
         Agreement or any new project commenced or acquired after the date
         hereof, which Debt does not provide for recourse against a Borrower or
         any Subsidiary of such Borrower (other than a Project Financing
         Subsidiary and such recourse as exists under a Performance Guaranty) or
         any property or asset of a Borrower or any Subsidiary of such Borrower
         (other than the property or assets of a Project Financing Subsidiary)
         and (ii) any refinancing of such Debt that does not increase the
         outstanding principal amount thereof at the time of the refinancing or
         increase the property subject to any Lien securing such Debt or
         otherwise add additional security or support for such Debt.

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

                  "Permitted Liens" means Liens specifically described on
         Schedule VI.

                  "Prairie Wolf Facility" means the financing provided in
         connection with that certain $611,788,868 Joint Venture Sponsor
         Agreement dated as of December 28, 2000 (as amended, supplemented,
         amended and restated or otherwise modified from time to

<PAGE>

                                       11

         time, the "SPONSOR AGREEMENT"), among TWC, as Sponsor, and Williams
         Field Services Company, in favor of Prairie Wolf Investors, Arctic Fox
         Assets, L.L.C., Williams Energy (Canada), Inc. and the other
         Indemnified Persons (as defined in the Sponsor Agreement) listed
         therein.

                  "Progeny Facilities" means the financing facilities
         specifically described on Schedule XII attached hereto.

                  "Project Financing Subsidiaries" means any non-material
         Subsidiary of any Borrower whose principal purpose is to incur
         Non-Recourse Debt and/or construct, lease, own or operate the assets
         financed thereby, or to become a direct or indirect partner, member or
         other equity participant or owner in a Business Entity so created, and
         substantially all the assets of which Subsidiary or Business Entity are
         limited to those assets being financed (or to be financed), or the
         operation of which is being financed (or to be financed), in whole or
         in part by Non-Recourse Debt, or to Equity Interests in, or Debt or
         other obligations of, one or more other such Subsidiaries or Business
         Entities, or to Debt or other obligations of any Borrower or its
         Subsidiaries or other Persons. For purposes of this definition, a
         "non-material Subsidiary" shall mean any Consolidated Subsidiary of any
         Borrower that is not the Borrower and which, as of the date of the most
         recent Consolidated balance sheet of the Borrower delivered pursuant to
         Section 4.01(e) or 5.01, has total assets which account for less than
         five percent (5%) of the total Consolidated assets of such Borrower and
         its Consolidated Subsidiaries, as shown on such Consolidated balance
         sheet; provided, that the aggregate assets of the non-material
         Subsidiaries shall not comprise more than ten percent (10%) of the
         total Consolidated assets of such Borrower and its Consolidated
         Subsidiaries, as shown on such Consolidated balance sheet.

                  "Refined Hydrocarbons" means all products refined, separated,
         fractionated, settled, and dehydrated from Hydrocarbons and all
         products derived therefrom, including, without limitation, kerosene,
         liquefied petroleum gas, refined lubricating oils, diesel fuels, drip
         gasoline, natural gasoline, helium, sulfur and all other minerals.

                  "Refineries" means the equity interest in, and assets owned
         by, the Midstream Business of TWC which produces Refined Hydrocarbons
         and is owned collectively by the following subsidiaries: Williams
         Express, Inc., a Delaware corporation, Williams Alaska Pipeline
         Company, LLC, a Delaware limited liability company, Williams Alaska
         Petroleum, Inc., an Alaska corporation, Williams Alaska Air Cargo
         Properties, LLC, an Alaska limited liability company, Williams Lynxs
         Alaska CargoPort, LLC, an Alaska limited liability company, Williams
         Express, Inc., an Alaska corporation, Williams Refining & Marketing,
         LLC, a Delaware limited liability company, Williams Olefins, LLC, a
         Delaware limited liability company, Williams Olefins Feedstock
         Pipelines, LLC, a Delaware limited liability company, Williams Memphis
         Terminal, Inc., a Delaware corporation, Williams Generating Memphis,
         LLC, a Delaware limited liability company.

                  "RMT" means Williams Production RMT Company.

                  "RMT LLC" means Williams Production Holdings LLC.

<PAGE>

                                       12

                  "Security Agreement" means a Security Agreement executed by
         the TWC and those certain guarantors party thereto in substantially the
         form of Exhibit F to the L/C Agreement, as amended, supplemented or
         modified from time to time.

                  "Seminole Asset Disposition" means the sale, transfer or other
         distribution of all or substantially all of the Equity Interests in or
         assets of Seminole.

                  "Soda Ash" means Williams Soda Products Company and American
         Soda, L.L.P.

                  "Solvent" and "Solvency" mean, with respect to any Person on a
         particular date, that on such date (a) the fair value of the property
         of such Person is greater than the total amount of liabilities,
         including, without limitation, contingent liabilities, of such Person,
         (b) the present fair salable value of the assets of such Person is not
         less than the amount that will be required to pay the probable
         liability of such Person on its debts as they become absolute and
         matured, (c) such Person does not intend to, and does not believe that
         it will, incur debts or liabilities beyond such person's ability to pay
         such debts and liabilities as they mature and (d) such Person is not
         engaged in business or a transaction, and is not about to engage in
         business or a transaction, for which such Person's property would
         constitute an unreasonably small capital. The amount of contingent
         liabilities at any time shall be computed as the amount that, in the
         light of all the facts and circumstances existing at such time,
         represents the amount that can reasonably be expected to become an
         actual or matured liability.

                  "Synthetic Lease" means any lease (including leases that may
         be terminated by the lessee at any time) of any property (whether real,
         personal or mixed) (i) that is not a capital lease in accordance with
         generally accepted accounting principles and (ii) in respect of which
         the lessee retains or obtains ownership of the property so leased for
         federal income tax purposes, other than any such lease under which such
         Person is the lessor.

                  "TGPL Bond Offering" means that certain $325,000,000, 8.875%
         Senior Notes due 2012 issued on July 3, 2002 by TGPL.

                  "Trading Book" means all mark to market daily and forward
         traded transactions inclusive of structured portfolio transactions
         consisting primarily of tolling and full requirements transactions.

                  "TravelCenters" means Williams TravelCenters, Inc.

                  "TWC Asset Dispositions" has the meaning specified in Section
         1 of the Consent and Fourth Amendment.

                  "TWC Preferred Stock" means the shares of preferred stock of
         TWC which may be perpetual preferred stock or mandatorily convertible
         into shares of common stock of TWC.

                  "TWC Asset Disposition Documents" means all material
         agreements relating to the TWC Asset Dispositions.

<PAGE>

                                       13

                  "WCG Unwind Transaction" means a transaction in which (i) the
         TWC's Sale Leaseback transaction with WCG and its Subsidiary, Williams
         Technology Center, LLC ("WTC") involving Williams Technology Center and
         two aircraft dated September 13, 2001 (the "WCG Sale Leaseback"), is
         terminated, (ii) in exchange for such termination, TWC receives a
         promissory note payable by the reorganized WCG, WTC and/or the other
         WCG Subsidiaries, as co-makers in an amount of $100,000,000 or less,
         and (iii) consideration from the Borrower and its Subsidiaries includes
         termination of the existing WCG Sale Leaseback, but does not include
         any cash payment by TWC or any of its Subsidiaries to WCG or WTC.

                  "WPRMT" means Williams Production RMT Company, a Delaware
         company.

                  "WPXE" means WPX Enterprises, Inc., a Delaware corporation.

                  (d) Section 2.04 is hereby amended by adding to the end
         thereof a new subsection (c) to read as follows:

                           "(c) Mandatory. Upon the date of receipt by TWC or
                  any of its Subsidiaries of any Net Cash Proceeds from (1) any
                  asset disposition (other than the MAPL Asset Disposition and
                  the Seminole Asset Disposition), or (2) an issuance of TWC
                  Preferred Stock, TWC shall apply such Net Cash Proceeds as
                  follows:

                                    (i) in the case of any such Net Cash
                           Proceeds arising from any disposition referred to in
                           clause (1) above which consists of the Refinery in
                           Alaska owned by certain Subsidiaries and the assets
                           related thereto, 50% of such Net Cash Proceeds shall
                           be applied on a pro-rata basis to the permanent
                           ratable reduction of the respective Commitments of
                           the Banks to TWC;

                                    (ii) in the case of any such Net Cash
                           Proceeds arising from any asset disposition referred
                           to in clause (1) above and not otherwise applied
                           pursuant to clause (i) above (including any
                           disposition of the Refinery in Memphis, Tennessee
                           owned by certain Subsidiaries and the assets related
                           thereto), 50% of such Net Cash Proceeds shall be
                           applied solely to the permanent ratable (x) reduction
                           of the respective Commitments of the Banks to TWC and
                           the outstanding amounts of the Progeny Facilities
                           (excluding the Prairie Wolf Facility) and (y) cash
                           collateralization of the Legacy L/Cs; and

                                    (iii) in the case of any such Net Cash
                           Proceeds arising from an issuance of TWC Preferred
                           Stock referred to in clause (2) above, 100% of such
                           Net Cash Proceeds shall be applied on a pro-rata
                           basis to the permanent ratable (x) reduction of the
                           respective Commitments of the

<PAGE>
                                       14

                           Banks to TWC and the outstanding amounts of the
                           Progeny Facilities (excluding the Prairie Wolf
                           Facility) and (y) cash collateralization of the
                           Legacy L/Cs;

                  provided, however, that notwithstanding the foregoing
         provisions of this clause (c), in no event shall the Commitment of the
         Banks to TWC be reduced, pursuant to this clause (c), to less than
         $400,000,000; provided, further, that (1) upon the mandatory permanent
         reduction of the Commitments of the Banks to TWC to $400,000,000, 50%
         of any Net Cash Proceeds arising from an asset disposition referred to
         in clause (c)(ii) above shall be applied solely to the permanent
         ratable reduction of the outstanding amounts of the Progeny Facilities
         (excluding the Prairie Wolf Facility) and the cash collateralization of
         the Legacy L/Cs and (2) if a reduction of the Commitments pursuant to
         this Section 2.04(c) shall cause the Commitments as so reduced to be
         less than the aggregate outstanding principal amount of the Advances
         (such positive difference between the Commitments and the outstanding
         Advances being referred to herein as the "EXCESS AMOUNT"), TWC shall
         repay an aggregate principal amount equal to no less than such Excess
         Amount, and except as set forth in this proviso, the obligation of TWC
         to apply Net Cash Proceeds to the reduction of the Commitments of the
         Banks shall not require any payments to the Banks.";

                  (e) Section 2.06(a) is hereby amended by inserting the words
         "plus the Applicable Margin" after the words "Base Rate" in the second
         and ninth lines thereof ;

                  (f) Section 3.02 is hereby amended by adding at the end
         thereof a new clause (d) to read as follows:

                           "(d) Evidence that TWC shall have received gross cash
                  proceeds in the aggregate amount of no less than
                  $2,100,000,000; provided that some or all of those proceeds
                  shall have been received from the MAPL Asset Disposition,
                  Seminole Asset Disposition and Barrett Loan.";

                  (g) Section 3.03 is hereby amended by adding at the end
         thereof a new clause (e) to read as follows:

                           "(e) Evidence that TWC shall have received gross cash
                  proceeds in the aggregate amount of no less than
                  $2,100,000,000; provided that some or all of those proceeds
                  shall have been received from the MAPL Asset Disposition,
                  Seminole Asset Disposition and Barrett Loan.";

                  (h) Section 4.01(a) is hereby amended by replacing the words
         "material Subsidiary" in the eighth and thirteenth lines thereof and
         replacing them with "Material Subsidiary";

                  (i) Section 4.01(b) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(b) The execution, delivery and performance by each
                  Borrower of the Credit Documents to which it is a party
                  delivered hereunder and the

<PAGE>
                                       15

                  consummation of the transactions contemplated thereby are
                  within such Borrower's corporate or limited liability company
                  powers, have been duly authorized by all necessary corporate
                  or limited liability company action, do not contravene (i) any
                  Borrower's charter, by-laws or formation agreement or (ii) law
                  or any restriction under any material agreement binding on or
                  affecting any Borrower or any Midstream Subsidiary and will
                  not result in or require the creation or imposition of any
                  Lien prohibited by this Agreement.";

                  (j) Section 4.01(c) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(c) No authorization or approval or other action by,
                  and no notice to or filing with, any governmental authority or
                  regulatory body is required for the due execution, delivery
                  and performance by each Borrower or any Midstream Subsidiary
                  of any Credit Document to which any of them is a party, or the
                  consummation of the transactions contemplated thereby.";

                  (k) Section 4.01(e)(i) is hereby amended by deleting the
         following sentence at the end of thereof:

                           "Since March 31, 2000 there has been no material
         adverse change in the condition or operations of TWC or its
         Subsidiaries.";

                  (l) Section 4.01(e)(ii) is hereby amended by deleting the
         following sentence at the end of thereof:

                           "Since March 31, 2000, there has been no material
         adverse change in the condition or operations of NWP or its
         Subsidiaries.";

                  (m) Section 4.01(e)(iv) is hereby amended by deleting the
         following sentence at the end of thereof:

                           "Since March 31, 2000, there has been no material
         adverse change in the condition or operations of TGPL or its
         Subsidiaries.";

                  (n) Section 4.01(e)(v) is hereby amended by deleting the
         following sentence at the end of thereof:

                           "Since March 31, 2000, there has been no material
         adverse change in the condition or operations of TGT or its
         Subsidiaries.";

                  (o) Section 4.01(f) is hereby amended by deleting the words
         "material Subsidiary" commencing in the fourth sentence thereof and
         replacing them with "Material Subsidiary";

                  (p) Section 4.01(j) is hereby amended by deleting the words
         "material Subsidiary" in the third and ninth sentences thereof and
         replacing them with "Material Subsidiary";

<PAGE>

                                       16

                  (q) Section 4.01(k) is hereby amended by replacing the words
         "material Subsidiary" in the second sentence thereof with "Material
         Subsidiary";

                  (r) Section 4.01(m) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(m) Except as set forth in the Public Filings or as
                  otherwise disclosed in writing by any Borrower to the Banks
                  and the Agent after the date hereof and approved by the
                  Majority Banks, each Borrower and its respective Material
                  Subsidiaries are in compliance in all material respects with
                  all Environmental Protection Statutes to the extent material
                  to the operations or the Consolidated financial condition of
                  each Borrower and its Consolidated Subsidiaries taken as a
                  whole. Except as set forth in the Public Filings or as
                  otherwise disclosed in writing by any Borrower to the Banks
                  and the Agent after the date hereof and approved by the
                  Majority Banks, the aggregate contingent and non-contingent
                  liabilities of each Borrower and its Consolidated Subsidiaries
                  (other than those reserved for in accordance with generally
                  accepted accounting principles and set forth in the financial
                  statements regarding any such Borrower referred to in Section
                  4.1(e) and delivered to each Bank and excluding liabilities to
                  the extent covered by insurance if the insurer has confirmed
                  that such insurance covers such liabilities or which such
                  Borrower reasonably expects to recover from ratepayers) which
                  are reasonably expected to arise in connection with (i) the
                  requirements of Environmental Protection Statutes or (ii) any
                  obligation or liability to any Person in connection with any
                  Environmental matters (including any release or threatened
                  release (as such terms are defined in the Comprehensive
                  Environmental Response, Compensation and Liability Act of
                  1980) of any Hazardous Waste, Hazardous Substance, other
                  waste, petroleum or petroleum products into the Environment)
                  could not reasonably be expected to have a material adverse
                  effect on the business, assets, conditions or operations of
                  any Borrower and its Subsidiaries, taken as a whole. Each
                  Borrower and its respective Material Subsidiaries holds all
                  Environmental Permits (each of which is in full force and
                  effect) required for any of its current or planned operations
                  or for any property owned, leased, or otherwise operated by
                  it; and is, and within the period of all applicable statutes
                  of limitation has been, in compliance with all of its
                  Environmental Permits."

                  (s) Section 4.01 is hereby amended by adding a new clauses
         (n), (o), (p), (q), (r) and (s) to read as follows:

                           "(n) Other than the Permitted Liens, each Borrower
                  and its Subsidiaries has good, valid and indefeasible title
                  to, or a valid leasehold interest in, its respective property
                  and to all property reflected by its respective balance sheet
                  referenced in clause (e) above as being owned by such
                  Borrower. TWC and each of the Midstream Subsidiaries have
                  sufficient title to all Midstream Assets they collectively own
                  and operate as is necessary for the conduct of the Midstream
                  Business after the date hereof in accordance with the
                  ownership and operation of the Midstream Business in the
                  twelve months prior to the date hereof. There

<PAGE>
                                       17

                  exists, or following completion of the post-closing items more
                  fully described in Schedule XIII, there will exist an
                  Acceptable Security Interest in all Collateral other than the
                  Excluded Collateral.

                           (o) The Persons listed on Schedule XIV are all of the
                  Midstream Subsidiaries and own, lease or hold all Midstream
                  Assets necessary and/or appropriate for the operation and
                  carrying on of the Midstream Business associated with the
                  Midstream Assets as conducted during the 12 months preceding
                  the date hereof.

                           (p) Neither TWC nor any Midstream Subsidiary is in
                  default under or with respect to any of its Contractual
                  Obligations in any respect which could reasonably be expected
                  to have a material adverse effect the Midstream Business of
                  TWC or any Midstream Subsidiary. No Default or Event of
                  Default has occurred and is continuing.

                           (q) Except as would not have a material adverse
                  effect on the conduct of the Midstream Business conducted by
                  the Midstream Subsidiaries, the various gathering systems
                  which comprise part of the Midstream Assets are covered by
                  recorded fee deeds, right of ways, easements, leases,
                  servitudes, permits, licenses, or other instruments in favor
                  of the Midstream Subsidiaries (or their predecessors in title)
                  and their successors and assigns, which instruments establish
                  a contiguous right of way for the respective gathering systems
                  and grant the right to construct, operate, and maintain the
                  respective gathering system in, over, under, and across the
                  land covered thereby; provided, that certain licenses and
                  permits from railroads, utilities, meter sites, and from the
                  various state and local Governmental Authorities and rights
                  granted by Hydrocarbon producers on their respective
                  properties may not be recorded. The pipelines comprising the
                  various gathering systems which are part of the Midstream
                  Assets of the Midstream Subsidiaries are located within the
                  confines of contiguous rights of way and do not encroach upon
                  any adjoining property in any material respects. The rights of
                  ingress and egress held by the Midstream Subsidiaries with
                  respect to such gathering systems allow the applicable
                  Midstream Subsidiaries to inspect, operate, repair, and
                  maintain such gathering systems in a normal manner consistent
                  with past practices.

                           (r) After giving effect to the Consent and Fourth
                  Amendment and the concurrent amendments to various financing
                  arrangements and agreements of each Borrower and its
                  Subsidiaries, each Borrower, individually and together with
                  its Subsidiaries, is Solvent.";

                           (s) No Borrower nor any Midstream Subsidiary is in
                  default under or with respect to any of its margin
                  requirements and capital assurance requirements in any respect
                  which could reasonably be expected to have a material adverse
                  effect on the Midstream Business of TWC, or any Midstream
                  Subsidiary. No Default or Event of Default has occurred and is
                  continuing.";

<PAGE>

                                       18

                  (t) Section 5.01(b)(ii) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(ii) as soon as available and in any event not later
                  than 60 days after the end of each of the first three Fiscal
                  Quarters of each Fiscal Year of such Borrower, (1) the
                  Consolidated balance sheet of such Borrower and its
                  Consolidated Subsidiaries as of the end of such Fiscal
                  Quarters and the Consolidated statements of income and cash
                  flows of such Borrower and its Consolidated Subsidiaries for
                  the period commencing at the end of the previous year and
                  ending with the end of such quarter, all in reasonable detail
                  and duly certified (subject to year-end audit adjustments and
                  the lack of footnotes) by an authorized financial officer of
                  such Borrower as having been prepared in accordance with
                  generally accepted accounting principles; provided that, if
                  any financial statement referred to in this clause (ii) of
                  Section 5.01(b) is readily available on-line through EDGAR as
                  of the date on which such financial statement is required to
                  be delivered hereunder, such Borrower shall not be obligated
                  to furnish copies of such financial statement; and (2) a
                  certificate of an authorized financial officer of such
                  Borrower (a) stating that he has no knowledge that a Default
                  or Event of Default has occurred and is continuing or, if a
                  Default or Event of Default has occurred and is continuing, a
                  statement as to the nature thereof and the action, if any,
                  which such Borrower proposes to take with respect thereto, and
                  (b) showing in detail the calculation supporting such
                  statement in respect of Sections 5.02(b) and 5.02(m);";

                  (u) Section 5.01(b)(iii) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(iii) as soon as available and in any event not
                  later than 105 days after the end of each Fiscal Year of such
                  Borrower, (1) a copy of the annual audited report for such
                  year for such Borrower and its Consolidated Subsidiaries,
                  including therein Consolidated balance sheet of such Borrower
                  and its Consolidated Subsidiaries as of the end of such Fiscal
                  Year and Consolidated statements of income and cash flows of
                  such Borrower and its Consolidated Subsidiaries for such
                  Fiscal Year, in each case prepared in accordance with
                  generally accepted accounting principles and reported on by
                  Ernst & Young, LLP or such other independent certified public
                  accountants of recognized standing acceptable to the Majority
                  Banks; provided that if any financial statement referred to in
                  this clause (iii) of Section 5.01(b) is readily available
                  on-line through EDGAR as of the date on which such financial
                  statement is required to be delivered hereunder, such Borrower
                  shall not be obligated to furnish copies of such financial
                  statement; and (2) a letter of such accounting firm to the
                  Banks (a) stating that, in the course of the regular audit of
                  the business of such Borrower and its Consolidated
                  Subsidiaries, which audit was conducted by such accounting
                  firm in accordance with generally accepted auditing standards,
                  such accounting firm has obtained no knowledge that a Default
                  or Event of Default has occurred and is continuing, or if, in
                  the opinion of such accounting firm, a Default or Event of
                  Default has occurred and is continuing, a statement as to the
                  nature thereof, and

<PAGE>
                                       19

                  (b) showing in detail the calculations supporting such
                  statement in respect of Sections 5.02(b) and 5.20(m), (which
                  letter may nevertheless be limited in form, scope and
                  substance to the extent required by applicable accounting
                  rules or guidelines in effect from time to time);";

                  (v) Section 5.01(b)(iv) is hereby amended by deleting the
         words "material Subsidiaries" in the third line thereof and replacing
         them with "Material Subsidiaries";

                  (w) Section 5.01(b)(v) is hereby amended by deleting the words
         "material Subsidiary" in the fourth and eighth lines thereof and
         replacing them with "Material Subsidiaries";

                  (x) Section 5.01(b)(vi) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(vi) as soon as possible and in any event within 30
                  Business Days after such Borrower or any ERISA Affiliate of
                  such Borrower knows or has reason to know (A) that any
                  Termination Event described in clause (i) of the definition of
                  Termination Event with respect to any Plan has occurred that
                  could have a material adverse effect on such Borrower or any
                  Material Subsidiary of such Borrower or any ERISA Affiliate of
                  such Borrower or (B) that any other Termination Event with
                  respect to any Plan has occurred or is reasonably expected to
                  occur that could have a material adverse effect on such
                  Borrower or any Material Subsidiary of such Borrower or any
                  ERISA Affiliate of such Borrower, a statement of the chief
                  financial officer or chief accounting officer of such Borrower
                  describing such Termination Event and the action, if any,
                  which such Borrower or such Subsidiary or such ERISA Affiliate
                  proposes to take with respect thereto;";

                  (y) Section 5.01(b) is hereby amended by adding at the end
         thereof a new clause (xii) to read as follows:

                           "(xii) promptly after any officer of such Borrower
                  obtains knowledge thereof, notice of (1) any material
                  violation of, noncompliance with, or remedial obligations
                  under, any Environmental Protection Statute, and (2) any
                  material release or threatened material release of Hazardous
                  Substance or Hazardous Waste affecting any property owned,
                  leased or operated by such Borrower or any Subsidiary of such
                  Borrower that such Borrower or such Subsidiary is compelled by
                  the requirements of any Environmental Protection Statute to
                  report to any governmental agency, department, board or other
                  instrumentality,";

                  (z) Section 5.01(c) is hereby amended by deleting the words
         "material Subsidiary" commencing in the first line thereof and
         replacing them with "Material Subsidiary";

                  (aa) Section 5.01 is hereby amended by adding at the end
         thereof new clauses (e), (f), (g), (h), (i), (j), (k), (l) and (m) to
         read as follows:

<PAGE>
                                       20

                           "(e) Acceptable Security Interest. Cause an
                  Acceptable Security Interest to exist at all times in all
                  Collateral, except as to the Excluded Collateral and as
                  otherwise contemplated by Section 5.01(g).

                           (f) Further Assurances. At any time and from time to
                  time, such Borrower shall, at its expense, promptly execute
                  and deliver to the Collateral Trustee and/or the Collateral
                  Agent such further instruments and documents, and take such
                  further action (including, without limitation, with respect to
                  the granting of a valid first priority Lien, subject to
                  Permitted Liens, on any personal or real property of TWC, any
                  MidStream Subsidiary or Williams Mobile Bay Producer Services,
                  L.L.C. which, on the date of this Agreement, is subject to any
                  contractual restriction prohibiting the granting of such a
                  Lien on such property, which contractual restriction shall
                  terminate prior to the Termination Date), as the Majority
                  Banks may from time to time reasonably request, in order to
                  further carry out the intent and purpose of the Credit
                  Documents and to establish and protect the rights, interests
                  and remedies created, or intended to be created, in favor of
                  the Collateral Trustee, Collateral Agent or any of the Banks,
                  including the execution, delivery, recordation and filing of
                  security agreements, financing statements and continuation
                  statements under the law of any applicable jurisdiction and
                  mortgages and deeds of trust necessary to grant a valid first
                  Lien on all Collateral of such Borrower and its Subsidiaries
                  whether such Collateral is now owned, leased, possessed by
                  license or any other means of acquiring a possessory interest
                  or hereafter acquired or possessed (each such mortgage or deed
                  of trust being an "Additional Mortgage"); provided, however,
                  that (i) Williams GP LLC shall not be required to grant a Lien
                  on any Equity Interests held by it in Williams Energy Partners
                  L.P. and (ii) Williams Energy Partners L.P. shall not be
                  required to grant a Lien on any of its personal or real
                  property.

                           (g) Post-Closing Requirements. On or before the dates
                  more fully set forth in Schedule XIII hereto, the Borrowers
                  shall satisfy, or shall cause satisfaction, of the items more
                  fully set forth in such Schedule XIII.

                           (h) Subsidiaries. Give the Agent thirty days prior
                  written notice of the creation or acquisition of any
                  Subsidiary (other than a Project Financing Subsidiary or any
                  Subsidiary of Williams Energy Partners L.P.) and concurrently
                  with the creation or acquisition of any such Subsidiary, cause
                  such Subsidiary (other than a Project Financing Subsidiary or
                  any Subsidiary of Williams Energy Partners L.P.) to provide to
                  the Collateral Agent a Security Agreement granting an
                  Acceptable Security Interest for the benefit of the Collateral
                  Trustee, appropriate legal opinions and, if such Subsidiary
                  owns any real property, a Mortgage covering such real
                  property, all of which shall be in the form and substance
                  satisfactory to the Collateral Agent.

                           (i) Bond Offerings. On or before August 1, 2002,
                  cause the net proceeds from the TGPL Bond Offering to be
                  maintained in a separate, segregated account in the name of
                  TGPL to be used solely for the purpose of paying the
                  bondholders as such bonds mature to be used solely as set
                  forth in the offering documents for the TGPL Bond Offering.

                           (j) Midstream Subsidiaries. Cause the representation
                  set forth in Section 4.01(p) to be true at all times.

                           (k) Cash Deposits. Maintain all or substantially all
                  of its cash deposits with one or more of the Banks party to
                  this Agreement, other than any cash deposit held in local
                  operational account or any international accounts.

<PAGE>
                                       21

                           (l) Barrett Liquidity Reserve. Cause RMT to at all
                  times maintain the Borrower Liquidity Reserve (as defined in
                  the Barrett Loan Agreement).

                           (m) Williams GP LLC. (i)Upon any sale or other
                  disposition (other than a redemption) of any Equity Interests
                  of Williams Energy Partners L.P. owned, directly or
                  indirectly, by Williams GP LLC, TWC shall furnish, or cause
                  Williams GP LLC to furnish, to the Agent a fairness opinion
                  with respect to such disposition prepared by a nationally
                  recognized investment banking firm; (ii) TWC shall cause
                  proceeds resulting from any redemption or disposition
                  described in clause (i) which have been distributed by
                  Williams GP LLC to, or otherwise received by, a Subsidiary
                  (except Williams Energy Partners L.P. or a Subsidiary thereof)
                  to be promptly delivered by such Subsidiary to the Collateral
                  Trustee pursuant to the Collateral Trust Agreement, to be held
                  by the Collateral Trustee as Collateral thereunder; and (iii)
                  upon a purchase of any property by Williams GP LLC using
                  proceeds from any redemption or disposition referred to in
                  clause (i), TWC shall furnish, or cause Williams GP LLC to
                  furnish, to the Agent a fairness opinion with respect to such
                  purchase prepared by a nationally recognized investment
                  banking firm.";

                  (bb) Section 5.02(a) is hereby amended in its entirety and
         replaced with the following:

                           "(a) Liens, Etc. Create, assume, incur or suffer to
                  exist, or permit any of its Subsidiaries to create, assume,
                  incur or suffer to exist, any Lien on or in respect of any of
                  its property, whether now owned or hereafter acquired, or
                  assign or otherwise convey, or permit any such Subsidiary to
                  assign or otherwise convey, any right to receive income, in
                  each case to secure or provide for the payment of any Debt,
                  trade payable or other obligation or liability or any Person
                  (other than obligations or liabilities that are (i) neither
                  Debt nor trade payables, (ii) incurred, and are owed to
                  trading counterparties, in the ordinary course of the trading
                  business of the Borrowers or any of their Subsidiaries, and
                  (iii) secured only by cash, short-term investments or a Letter
                  of Credit); provided however, that, notwithstanding the
                  foregoing, (1) the Borrowers or any of their Subsidiaries may
                  create, incur, assume or suffer to exist Permitted Liens and
                  (2) RMT and RMT LLC may create, incur, assume or suffer to
                  exist any Lien created pursuant to the Barrett Loan Agreement
                  or documents related thereto.";

                  (cc) Section 5.02(b)(i) is hereby amended in its entirety and
         replaced with the following:

                           "In the case of TWC, permit the ratio of (A) the
                  aggregate amount of Consolidated Debt of TWC and its
                  Consolidated Subsidiaries to (B) the sum of the Consolidated
                  Net Worth of TWC plus the aggregate amount of Consolidated
                  Debt of TWC and its Consolidated Subsidiaries to exceed at any
                  time (x) on or before December 30, 2002, 0.70 to 1.00, (y)
                  after December 30, 2002 and on or before March 30, 2003, 0.68
                  to 1.00 and (z) after March 30, 2003, 0.65 to 1.00.";

<PAGE>
                                       22

                  (dd) Section 5.02(b)(ii) is hereby amended in its entirety and
         replaced with the following:

                           "In the case of any Borrower (other than TWC), permit
                  the ratio of (A) the aggregate amount of Consolidated Debt of
                  such Borrower and its Subsidiaries on a Consolidated basis, to
                  (B) the sum of the Consolidated Net Worth of such Borrower
                  plus the aggregate amount of Consolidated Debt of such
                  Borrower and its Subsidiaries on a Consolidated basis to
                  exceed at any time 0.55 to 1.00.";

                  (ee) Section 5.02(c) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(c) Merger and Sale of Assets. Merge or consolidate
                  with or into any other Person, or sell, lease or otherwise
                  transfer a material part of its assets, or permit any of its
                  Major Subsidiaries to merge or consolidate with or into any
                  other Person, or sell, lease or otherwise transfer a material
                  part of such Major Subsidiary's assets, except that this
                  Section 5.02(c) shall not prohibit any sale or transfer
                  permitted by Section 5.02 (l) or any TWC Asset Disposition.";

                  (ff) Section 5.02(d) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(d) Agreements to Restrict Certain Transfers. Enter
                  into or suffer to exist, or permit any of its Subsidiaries to
                  enter into or suffer to exist, any consensual encumbrance or
                  restriction on its ability or the ability of any of its
                  Subsidiaries (i) to pay, directly or indirectly, dividends or
                  make any other distributions in respect of its capital stock
                  or pay any Debt or other obligation owed to a Borrower or to
                  any of its Subsidiaries; or (ii) to make loans or advances to
                  a Borrower or any Subsidiary thereof, except (1) encumbrances
                  and restrictions on any Subsidiary that is not a Material
                  Subsidiary, (2) those encumbrances and restrictions existing
                  on July 31, 2002, (3) other customary encumbrances and
                  restrictions now or hereafter existing of a Borrower or any
                  Subsidiary thereof entered into in the ordinary course of
                  business that are not more restrictive in any material respect
                  than the encumbrances and restrictions with respect to a
                  Borrower or its Subsidiaries existing on the date hereof, (4)
                  encumbrances or restrictions on any Subsidiary that is
                  obligated to pay Non-Recourse Debt arising in connection with
                  such Non-Recourse Debt, (5) encumbrances and restrictions on
                  Williams Energy Partners L.P. and (6) encumbrances and
                  restrictions on any Subsidiary pursuant to the Barrett Loan
                  Agreement.";

                  (gg) Section 5.02(e) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(e) Loans and Advances; Investments. Make or permit
                  to remain outstanding, or allow any of its Subsidiaries to
                  make or permit to remain outstanding, any loan or advance to,
                  or own, purchase or acquire any obligations or debt or Equity
                  Interests of, any WCG Subsidiary, except that a Borrower and

<PAGE>
                                       23

                  its Subsidiaries may (i) permit to remain outstanding, and to
                  replace or refinance, loans and advances and other financing
                  arrangements to, or Equity Interest in, a WCG Subsidiary
                  existing or owned (in the case of such Equity Interests) as of
                  the date hereof and listed on Exhibit E hereof, but no such
                  replacement or refinancing shall exceed the amount of such
                  loans, advances or other amounts outstanding immediately prior
                  to such replacement or refinancing, (ii) pursuant to the WCG
                  Unwind Transaction, acquire and own the promissory note
                  referred to in clause (b) of the definition herein of WCG
                  Unwind Transaction, and (iii) receive any distribution from
                  WCG or any Subsidiary thereof in connection with the
                  bankruptcy proceedings of WCG or any Subsidiary thereof.
                  Except for those investments permitted in subsections (i),
                  (ii) and (iii) above, no Borrower shall, and no Borrower shall
                  permit any of its Subsidiaries to, acquire or otherwise invest
                  in Equity Interests in, or make any loan or advance to, a WCG
                  Subsidiary.";

                  (hh) Section 5.02(f) is hereby and restated in its entirety
         and replaced with the following:

                           "(f) Maintenance of Ownership of Certain
                  Subsidiaries. Except with respect to Williams Energy Partners
                  L.P., WPC, the Refineries, MAPL, Seminole and their respective
                  Subsidiaries, sell, issue or otherwise dispose of, or create,
                  assume, incur or suffer to exist any Lien on or in respect of,
                  or permit any of its Subsidiaries to sell, issue or otherwise
                  dispose of or create, assume, incur or suffer to exist any
                  Lien on or in respect of, any Equity Interests or any direct
                  or indirect interest in any Equity Interests in any Borrower
                  or any of its Material Subsidiaries; provided, however, that
                  this Section 5.02(f) shall not prohibit (i) Permitted Liens,
                  (ii) the sale or other disposition of the Equity Interests in
                  any Subsidiary of a Borrower to the Borrower or any
                  Wholly-Owned Subsidiary of a Borrower if, but only if, (x)
                  there shall not exist or result a Default or Event of Default
                  and (y) in the case of each sale or other disposition referred
                  to in this proviso involving such Borrower or any of its
                  Subsidiaries, such sale or other disposition could not
                  reasonably be expected to impair materially the ability of
                  such Borrower to perform its obligations hereunder and under
                  any other Credit Document and such Borrower shall continue to
                  exist, (iii) any Subsidiary from selling or otherwise
                  disposing of any direct or indirect Equity Interests in any
                  Subsidiary (other than TPGL, TGT, or NWP) of a Borrower, (iv)
                  any TWC Asset Disposition, or (v) the sale or other
                  disposition of the Equity Interests in any Subsidiary of any
                  Borrower pursuant to, and in accordance with, the Barrett Loan
                  Agreement; provided that, after giving effect to any such sale
                  or other disposition of any Equity Interests owned directly or
                  indirectly by a Major Subsidiary, such Subsidiary continues to
                  be a Major Subsidiary. Nothing herein shall be construed to
                  permit the Borrower or any of its Subsidiaries to purchase
                  shares, any interest in shares or any ownership interest in a
                  WCG Subsidiary except as permitted by Section 5.02(d).";

<PAGE>
                                       24

                  (ii) Section 5.02(g) is hereby amended by deleting the words
         "material Subsidiary" in the third and sixth lines thereof and
         replacing them with "Material Subsidiary";

                  (jj) Section 5.02(h) is hereby amended by deleting the words
         "material Subsidiary" in the third line thereof and replacing them with
         "Material Subsidiary";

                  (kk) Section 5.02(i) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(i) Guarantees. After the date of the Consent and
                  Fourth Amendment, enter into any agreement to guarantee or
                  otherwise become contingently liable for, or permit any of its
                  Subsidiaries to guarantee or otherwise become contingently
                  liable for, Debt or any other obligation of any WCG Subsidiary
                  or to otherwise assure a WCG Subsidiary, or any creditor of a
                  WCG Subsidiary, against loss, except for any guarantees
                  permitted by the L/C Agreement and the Holdings Guaranty.";

                  (ll) Section 5.02(j) is hereby amended and restated in its
         entirety and replaced with the following:

                           "(j) Sale and Lease-Back Transactions. Enter into, or
                  permit any of its Subsidiaries to enter into, any Sale and
                  Lease-Back Transaction, if after giving effect thereto such
                  Borrower would not be permitted to incur at least $1.00 of
                  additional Debt secured by a Lien permitted by paragraph (y)
                  of Schedule VI.";

                  (mm) Section 5.02(k) is hereby amended by adding to the end
         thereof the following:

                           "Notwithstanding anything to the contrary contained
                  herein, if any, (i) with respect to EMT, proceeds of any
                  Advance shall only be used, directly or indirectly, as
                  necessary for the orderly disposition of the Trading Book and
                  (ii) no proceeds of any Advance shall be used to pay any
                  principal amounts outstanding, interest, fees or other costs
                  with respect to the Barrett Loan, it being understood that
                  proceeds of any Advance may be used to support margin
                  requirements with regard to Hedging Agreements on oil and
                  gas.";

                  (nn) Section 5.02 is hereby amended by adding at the end
         thereof new clauses (l), (m), (n), (o), and (p) to read as follows:

                           "(l) Asset Disposition. Sell, lease, transfer or
                  otherwise dispose of, or permit any of their Material
                  Subsidiaries to sell, lease, transfer or otherwise dispose of,
                  any property of the Borrowers or any Material Subsidiary of
                  the Borrowers, except (i) sales of inventory in the ordinary
                  course of business and on reasonable terms, (ii) sales of worn
                  out or obsolete equipment in the ordinary course of business,
                  if no Event of Default exists at the time of such sale, (iii)
                  replacement of equipment in the ordinary course of business
                  with other equipment at least as useful and beneficial to TWC
                  or its Material Subsidiaries and their

<PAGE>

                                       25

                  respective businesses as the equipment replaced if no Event of
                  Default exists at the time of such replacement and an
                  Acceptable Security Interest exists in such other equipment at
                  the time of such replacement, (iv) sales of other immaterial
                  Property (other than Equity Interests, Debt or other
                  obligations of any Subsidiary) in the ordinary course of
                  business and on reasonable terms, if no Event of Default
                  exists at the time of such sale; provided that Property may
                  not be sold pursuant to this clause (iv) if the aggregate fair
                  market value of all Property sold pursuant to this clause (iv)
                  exceeds $250,000 in any year, (v) sales of assets which are
                  not Collateral for cash in arm's length transactions, (vi)
                  sales or other dispositions of WPC or the Refineries, (vii)
                  sales of MAPL and Seminole and (viii) sales or other
                  dispositions of assets of Williams GP LLC or Williams Energy
                  Partners L.P.; provided that (A) the proceeds from any
                  disposition permitted pursuant to clauses (i) through (vi),
                  shall be applied in accordance with the terms and conditions
                  of this Agreement and (B) assets disposed of pursuant to
                  clauses (i) through (v) shall not constitute a material part
                  of the assets of TGPL, TGT or NWP. Upon receipt of a written
                  request therefor from the applicable Borrower relating to
                  dispositions permitted pursuant to this Section 5.02(l), (x)
                  the Collateral Agent will execute and deliver all documents as
                  may reasonably be requested to effect a release of the Liens
                  on any such Collateral held by the Collateral Trustee pursuant
                  the Collateral Trust Agreement and other L/C Collateral
                  Documents and (y) each Bank shall be deemed to have
                  affirmatively approved the release of such Collateral.
                  Notwithstanding anything in this Section 5.02(l) to the
                  contrary, and for greater certainty, nothing in this Agreement
                  shall prohibit (1) the transfer of Equity Interests of RMT
                  from TWC to RMT LLC or (2) TWC or any of its Subsidiaries
                  (including RMT LLC, RMT and their respective Subsidiaries)
                  from selling, leasing, transferring or otherwise disposing of
                  any property of the Borrowers or any Subsidiaries of the
                  Borrowers in accordance with the provisions of the Barrett
                  Loan Agreement.

                           (m) Cash Flow to Interest Expense Ratio. Permit, for
                  any period of four consecutive quarters, the ratio of (A) the
                  sum of Cash Flow of any Borrower plus Interest Expense of such
                  Borrower to (B) Interest Expense of such Borrower to be less
                  than 1.5 to 1.0.

                           (n) Restricted Payments. Declare or pay any
                  dividends, purchase, redeem, retire, defease or otherwise
                  acquire for value any of its Equity Interests now or hereafter
                  outstanding, return any capital to its stockholders, partners
                  or members (or the equivalent Persons thereof) as such, make
                  any distribution of assets, Equity Interests, obligations or
                  securities to its stockholders, partners or members (or the
                  equivalent Person thereof) as such or issue or sell any Equity
                  Interests or accept any capital contributions, or permit any
                  of its Subsidiaries to do any of the foregoing, or permit any
                  of its Subsidiaries to purchase, redeem, retire, defease or
                  otherwise acquire for value any Equity Interests in a Borrower
                  or to issue or sell any Equity Interests therein, make any
                  prepayment with respect to any Debt (other than the Progeny
                  Facilities or Debt of Williams Energy Partners L.P. and its
                  Subsidiaries) or repurchase any Debt securities except as
                  required by the terms thereof in effect on the date hereof,
                  except that, so long as no Default

<PAGE>

                                       26

                  shall have occurred and be continuing at the time of any
                  action described in clauses (i) through (iv) below or would
                  result therefrom:

                                    (i) TWC may (A) declare and pay cash
                           dividends and distributions on its (1) 9 7/8ths%
                           Cumulative Convertible Preferred Stock, (2) December
                           2000 Cumulative Convertible Preferred Stock and (3)
                           March 2001 Mandatorily Convertible Single Reset
                           Preferred Stock, (B) declare and pay cash dividends
                           and distributions on TWC Preferred Stock issued on or
                           after July 30, 2002 in form and substance
                           satisfactory to the Agent and (C) in any Fiscal
                           Quarter, declare and pay cash dividends to its
                           stockholders and purchase, redeem, retire or
                           otherwise acquire shares of its own outstanding
                           capital stock for cash if after giving effect thereto
                           the aggregate amount of such dividends, purchases,
                           redemptions, retirements and acquisitions paid or
                           made in any such Fiscal Quarter would be no greater
                           than the sum of $6,250,000;

                                    (ii) any Subsidiaries of TWC may (A) declare
                           and pay cash dividends to TWC and (B) declare and pay
                           cash dividends to any other Guarantor under the L/C
                           Agreement of which it is a Subsidiary;

                                    (iii) Williams Energy Partners L.P. may
                           declare and pay cash distributions to its
                           unitholders; provided that any such cash distribution
                           shall comply with the partnership agreement governing
                           Williams Energy Partners L.P.; and

                                    (iv) Apco Argentina, Inc. may declare and
                           pay dividends in accordance with applicable laws and
                           its governing documents.".

                           (o) Investment in Other Persons. Make or hold, or
                  permit any of its Subsidiaries to make or hold, any Investment
                  in any Person, except (i) equity Investments by a Borrower and
                  its Subsidiaries in their Subsidiaries outstanding on the date
                  hereof and additional investments in Subsidiaries engaged in
                  businesses reasonably related to the businesses carried on by
                  such Borrower and its Subsidiaries on the date hereof; (ii)
                  loans and advances to employees in the ordinary course of the
                  business of a Borrower and its Subsidiaries as presently
                  conducted; (iii) Investments of a Borrower and its
                  Subsidiaries in Cash Equivalents; (iv) Investments existing on
                  the date hereof; (v) Investments by a Borrower in Hedge
                  Agreements entered into in the ordinary course of business and
                  not for speculative purposes; (vi) Investments consisting of
                  intercompany debt; and (vii) other Investments in an aggregate
                  amount invested not to exceed $50,000,000 annually; provided
                  that with respect to Investments made under this clause (vii);
                  (1) any newly acquired or organized Subsidiary of a Borrower
                  or any of its Subsidiaries shall be a wholly owned Subsidiary
                  thereof; (2) immediately before and after giving effect
                  thereto, no Default shall have occurred and be continuing or
                  would result therefrom; and (3) any company or business
                  acquired

<PAGE>
                                       27

                  or invested in pursuant to this clause (vii) shall be in the
                  same line of business as the business of a Borrower or any of
                  its Subsidiaries.

                           (p) Subsidiary Debt. Permit any of its Subsidiaries
                  to create, incur, assume or suffer to exist Debt, other than
                  (i) Debt incurred, assumed or suffered to exist by TGPL, TGT,
                  NWP, or Williams Energy Partners L.P. or its Subsidiaries,
                  (ii) Debt incurred, assumed or suffered to exist by
                  Subsidiaries (other than those referred to in clause (i) and
                  the Subsidiaries the stock of which is pledged under the
                  Pledge Agreement (as defined in the L/C Agreement)) in an
                  aggregate amount equal to $50,000,000, (iii) Debt in existence
                  on the date hereof, (iv) Debt under the Guaranties, (v) Debt
                  of the Project Financing Subsidiaries; (vi) Debt under the
                  Barrett Loan Agreement and (vii) Debt consisting of
                  intercompany debt so long as obligations of the debtors
                  thereunder are subordinated to their obligations under the
                  Credit Documents and are incurred in the ordinary of the cash
                  management systems of the Borrowers and their Subsidiaries.";

                  (oo) Section 8.01 of the Credit Agreement is hereby amended by
         deleting the word "or" in the fifteenth line thereof and adding a new
         (h) at the end thereto to read as follows:

                           "or (h) release any of the Collateral (except as
                  contemplated by Section 5.02(l))";

                  (pp) Schedule VI is hereby amended in its entirety and
         replaced with Annex A attached hereto;

                  (qq) Schedule XI is hereby amended in its entirety and
         replaced with Annex B attached hereto;

                  (rr) Schedules III, IV and V are hereby deleted in their
         entirety and replaced with the following:

                           "[Intentionally Omitted]";

                  (ss) The Credit Agreement is hereby amended by adding a new
         Schedule XII attached hereto as Annex C;

                  (tt) The Credit Agreement is hereby amended by adding a new
         Schedule XIII attached hereto as Annex D; and

                  (uu) The Credit Agreement is hereby amended by adding a new
         Schedule XIV attached hereto as Annex E.

                  SECTION 3. Successor Agent. Pursuant to Section 7.06 of the
Credit Agreement, Citibank hereby resigns as Agent and, with the consent and
approval of the Majority Banks and TWC, hereby appoints, in accordance with the
terms of such Section 7.06, Citicorp USA, Inc. ("Citicorp") as successor Agent
under the Credit Agreement. By its signature hereto, Citicorp hereby
acknowledges its acceptance of such appointment as Agent and to the terms and
conditions of such appointment as set forth in Section 7.06 of the Credit
Agreement.

<PAGE>
                                       28

                  For purposes of Section 8.02 of the Credit Agreement, all
notices and other communications to Citicorp, as Agent, shall be delivered to
its address at 399 Park Avenue, New York, New York 10043, (telecopier number:
(302) 894-6120), Attention: Williams Account Officer, with a copy to Citicorp
North America, Inc., 1200 Smith Street, Suite 2000, Houston, Texas 77002
(telecopier number: (713) 654-2849), Attention: The Williams Companies, Inc.
Account Officer, or at such other address as shall be designated by Citicorp in
a written notice to the other parties.

                  SECTION 4. Conditions of Effectiveness. This Agreement shall
become effective as of the date first above written when, and only when, on or
before July 31, 2002, the Agent shall have received counterparts of this
Agreement executed by the Borrowers and the Majority Banks or, as to any of the
Banks, advice satisfactory to the Agent that such Bank has executed this
Agreement. This Agreement is subject to the provisions of Section 8.01 of the
Credit Agreement. Sections 1 through 3 hereof shall become effective when, and
only when, on or before July 31, 2002, the Agent shall have additionally
received all of the following documents, each such document (unless otherwise
specified) dated the date of receipt thereof by the Agent (unless otherwise
specified) and in sufficient copies for each Bank, in form and substance
satisfactory to the Agent and the Majority Banks (unless otherwise specified)
and in sufficient copies for each Bank:

                  (a) Certified copies of (i) the resolutions of the Board of
         Directors, or the Executive Committee thereof, of each of the Borrowers
         approving this Agreement and the matters contemplated hereby and (ii)
         all documents evidencing other necessary corporate action and
         governmental approvals, if any, with respect to this Agreement and the
         matters contemplated hereby.

                  (b) A certificate of the Secretary or an Assistant Secretary
         of each Borrower certifying (i) the names and true signatures of the
         officers of such Borrower authorized to sign this Agreement and the
         other documents to be delivered hereunder and thereunder and, (ii) that
         attached thereto is a complete and correct copy of the Certificate of
         Incorporation and Bylaws of such Borrower together with any amendments
         thereto.

                  (c) Favorable opinions of William G. von Glahn, General
         Counsel of TWC, and Skadden, Arps, Slate, Meagher & Flom LLP, counsel
         for the Borrowers, substantially in the Form of Exhibit A hereto and as
         to such other matters as the Agent may reasonably require.

                  (d) A certificate signed by a duly authorized officer of each
         Borrower stating that:

                           (i) the representations and warranties contained in
                  Section 5 are correct on and as of the date of such
                  certificate as though made on and as of such date other than
                  any such representations or warranties that, by their terms,
                  refer to a date other than the date of such certificate; and

<PAGE>
                                       29

                           (ii) after giving effect to the Consent and Fourth
                  Amendment and the transactions contemplated therein, no event
                  has occurred and is continuing that constitutes a Default.

                  (e) A duly executed and fully effective L/C Agreement and an
         amendment to each of the Progeny Facility documents, other than those
         automatically amended by virtue of this Agreement, each dated the date
         of this Agreement.

                  (f) The L/C Collateral Documents (other than the Mortgages and
         Additional Mortgages; each as defined in the L/C Agreement) and all
         documents required for perfection of the Liens granted pursuant to such
         L/C Collateral Documents.

                  SECTION 5. Representations and Warranties of the Borrowers
Each of the Borrowers represents and warrants as follows:

                  (a) Each Borrower is a corporation duly organized, validly
         existing and in good standing under the laws of the jurisdiction
         indicated in the recital of parties to this Agreement.

                  (b) The execution, delivery and performance by the Borrowers
         of this Agreement, 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 (i)
         contravene the Borrowers' charters or by-laws, (ii) violate any law
         (including, without limitation, the Securities Exchange Act of 1934, as
         amended, and the Racketeer Influenced and Corrupt Organizations Chapter
         of the Organized Crime Control Act of 1970), rule or regulation
         (including, without limitation, Regulation X of the Board of Governors
         of the Federal Reserve System), or any order, writ, judgment,
         injunction, decree, determination or award, binding on or affecting the
         Borrowers or any of their Subsidiaries or any of their properties,
         (iii) conflict with or result in the breach of, or constitute a default
         under, any contract, loan agreement, indenture, mortgage, deed of
         trust, lease or other instrument binding on or affecting the Borrowers,
         any of their Subsidiaries or any of their properties or (iv) except for
         the Liens created under the L/C Collateral Documents and the TWC Asset
         Disposition Documents, as amended hereby, result in or require the
         creation or imposition of any Lien upon or with respect to any of the
         properties of the Borrowers or any of their Subsidiaries.

                  (c) No authorization or approval or other action by, and no
         notice to or filing with, any governmental authority or regulatory body
         or any other third party is required for the due execution, delivery or
         performance by the Borrowers of this Agreement or L/C Collateral
         Documents to which it is or is to be a party.

                  (d) This Agreement has been duly executed and delivered by
         each Borrower. This Agreement and the Credit Agreement, as amended
         hereby, to which each Borrower is a party, are legal, valid and binding
         obligations of each Borrower, enforceable against each Borrower in
         accordance with their respective terms.

                  (e) There is no action, suit, investigation, litigation or
         proceeding affecting any Borrower or any of its Subsidiaries
         (including, without limitation, any environmental

<PAGE>
                                       30

         action) pending or threatened before any court, governmental agency or
         arbitrator that (i) would be reasonably likely to have a material
         adverse effect on the business, condition (financial or otherwise),
         operations, performance, properties or prospects of any Borrower or any
         of its Subsidiaries or (ii) purports to affect the legality, validity
         or enforceability of this Agreement or the Credit Agreement, as amended
         hereby, or the consummation of any of the transactions contemplated
         hereby.

                  (f) The representations and warranties made by each Borrower
         in Article IV of the Credit Agreement, as amended hereby, are correct
         and true in all material respects on and as of the date hereof as
         though made on and as of the date hereof (it being understood and
         agreed that any such representation or warranty which by its terms
         applies only to a specified date shall be true and correct in all
         material respects only as of such specified date).

                  (g) Except as has been disclosed to each Bank, from December
         31, 2001, to the date of this Agreement, there has been no material
         adverse change in the Consolidated financial condition or Consolidated
         results of operations of any Borrower and its Consolidated
         Subsidiaries.

                  SECTION 6. Reference to and Effect on the Credit Agreement and
the Notes.

                  (a) On and after the effectiveness of this Agreement, each
         reference in the Credit Agreement to "this Agreement", "hereunder",
         "hereof" or words of like import referring to the Credit Agreement, and
         each reference in the Notes to "the Credit Agreement", "thereunder",
         "thereof" or words of like import referring to the Credit Agreement,
         shall mean and be a reference to the Credit Agreement, as amended by
         this Agreement.

                  (b) The Credit Agreement and the Notes, as specifically
         amended by this Agreement, are and shall continue to be in full force
         and effect and are hereby in all respects ratified and confirmed.

                  (c) The execution, delivery and effectiveness of this
         Agreement shall not, except as expressly provided herein, operate as a
         waiver of any right, power or remedy of any Bank or the Agent under the
         Credit Agreement, nor constitute a waiver of any provision of the
         Credit Agreement.

                  SECTION 7. Costs, Expenses and Taxes. The Borrowers, jointly
and securely, agree to pay on demand all costs and expenses of the Agent in
connection with the preparation, execution, delivery and administration,
modification and amendment of this Agreement and the other instruments and
documents to be delivered hereunder (including, without limitation, the
reasonable fees and expenses of counsel for the Agent) in accordance with the
terms of Section 8.04 of the Credit Agreement.

                  SECTION 8. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same
agreement. Delivery of an executed counterpart of a signature

<PAGE>

                                       31

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

                  SECTION 9. Miscellaneous. Each Bank party hereto which is
also, on the date hereof, the issuing bank under any bilateral letter of credit
to which any Borrower is the account party thereof shall be deemed to have
waived its right, if any, to cash collateralize on demand such letter of credit
by its signature hereto.

                  SECTION 10. Undertaking; Post Closing Actions. The parties to
this Agreement hereby agree and undertake to each use their best efforts and to
act diligently and promptly in taking any action or step necessary to resolve or
correct any error, omission, open item or general inconsistency or other
discrepancy which may exist, or of which the parties hereto may hereafter become
aware, in any Credit Document.

                  SECTION 11. Governing Law. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of New York.

                    [Signature pages to follow on next page]

<PAGE>

                  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.

                                  BORROWERS:

                                  THE WILLIAMS COMPANIES, INC.

                                  By   /s/ James G. Ivey
                                       ----------------------------------------
                                  Name:  James G. Ivey
                                  Title: Treasurer

                                  TEXAS GAS TRANSMISSION CORPORATION

                                  By     /s/ Richard Rodekohr
                                         --------------------------------------
                                  Name:  Richard Rodekohr
                                  Title: V.P. and C.F.O.

                                  TRANSCONTINENTAL GAS PIPE LINE CORPORATION

                                  By   /s/ Richard Rodekohr
                                       ----------------------------------------
                                  Name:  Richard Rodekohr
                                  Title: V.P. and C.F.O.

                                  NORTHWEST PIPELINE CORPORATION

                                  By    /s/ Richard Rodekohr
                                       ----------------------------------------
                                  Name:  Richard Rodekohr
                                  Title: V.P. and C.F.O.

<PAGE>

                                  AGENT:

                                  CITIBANK, N.A., as Agent

                                  By:   /s/ J. Christopher Lyons
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:    7/31          , 2002
                                        -----------------

                                  CO-SYNDICATION AGENTS:

                                  JPMORGAN CHASE BANK
                                  (formerly known as
                                  THE CHASE MANHATTAN BANK),
                                  as Co-Syndication Agent

                                  By:   /s/ Sanjeev Khemlani, V.P.
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:   July 31, 2002
                                        -----------------

                                  COMMERZBANK AG,
                                  as Co-Syndication Agent

                                  By:   /s/ Subash Viswanathan
                                       ----------------------------------------
                                            Subash Viswanathan
                                            Senior Vice President

                                  By:   /s/ Brian Campbell
                                       ----------------------------------------
                                            Brian Campbell
                                            Senior Vice President

                                  Date:    July 30, 2002
                                        -----------------

<PAGE>

                                  DOCUMENTATION AGENT:

                                  CREDIT LYONNAIS NEW YORK BRANCH
                                  as Documentation Agent

                                  By:  /s/ Bernard Weymuller
                                       ----------------------------------------
                                           Bernard Weymuller
                                           Senior Vice President

                                  Date:  July 31, 2002
                                        -----------------

<PAGE>

                                  BANKS:

                                  CITIBANK, N.A.

                                  By:  /s/ J. Christopher Lyons
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:     7/31        , 2002
                                        -----------------

<PAGE>

                                  THE BANK OF NOVA SCOTIA

                                  By:  /s/ Nadine Bell
                                       ----------------------------------------
                                           Nadine Bell, Senior Manager

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  BANK OF AMERICA, N.A.

                                  By:  /s/ Claire Liu
                                       ----------------------------------------
                                           Claire M. Liu

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  BANK ONE, N.A. (MAIN OFFICE - CHICAGO)

                                  By:  /s/ Jeanie C. Gonzalez
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:   July 31         , 2002
                                        -----------------

<PAGE>

                                  JPMORGAN CHASE BANK
                                  (formerly known as
                                  THE CHASE MANHATTAN BANK)

                                  By:  /s/ Sanjeev Khemlani
                                       ----------------------------------------
                                           Sanjeev Khemlani

                                  Date:    July 31       , 2002
                                        -----------------

<PAGE>

                                  COMMERZBANK AG
                                  NEW YORK AND GRAND CAYMAN BRANCHES

                                  By:
                                       ----------------------------------------
                                               Authorized Officer

                                  By:
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  CREDIT LYONNAIS NEW YORK BRANCH

                                  By:  /s/ Bernard Weymuller
                                       ----------------------------------------
                                           Bernard Weymuller
                                           Senior Vice President

                                  Date:     July 31      , 2002
                                        -----------------

<PAGE>

                                  MIZUHO CORPORATE BANK, LTD.

                                  By:  /s/ Jacques Azagury
                                       ----------------------------------------
                                               Authorized Officer
                                               Jacques Azagury
                                               Senior Vice President and Manager

                                  Date:   July 30        , 2002
                                        -----------------

<PAGE>

                                  NATIONAL WESTMINSTER BANK PLC
                                  NEW YORK BRANCH

                                  By:
                                       ----------------------------------------

                                           Name:
                                                   ----------------------------
                                           Title:
                                                    ---------------------------

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  ABN AMRO BANK, N.V.

                                  By:
                                       ----------------------------------------
                                               Authorized Officer

                                  By:
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  BANK OF MONTREAL

                                  By:
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  THE BANK OF NEW YORK

                                  By:  /s/ Raymond J. Palmer
                                       ----------------------------------------
                                               Authorized Officer
                                               Raymond J. Palmer
                                               Vice President

                                  Date:    July 30        , 2002
                                        -----------------

<PAGE>

                                  BARCLAYS BANK PLC

                                  By:  /s/ Richard B. Williams
                                       ----------------------------------------
                                               Authorized Officer
                                               Richard B. Williams
                                               Director

                                  Date:      7/31         , 2002
                                        -----------------

<PAGE>

                                  CIBC INC.

                                  By: /s/  [ILLEGIBLE]
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:   July 31        , 2002
                                        -----------------

<PAGE>

                                  CREDIT SUISSE FIRST BOSTON

                                  By:  /s/ James P. Moran
                                       ----------------------------------------
                                               Authorized Officer
                                            James P. Moran, Director

                                  By:  /s/ Jay Chall
                                       ----------------------------------------
                                               Authorized Officer
                                               Jay Chall, Director

                                  Date:   July 30        , 2002
                                        -----------------

<PAGE>

                                  ROYAL BANK OF CANADA

                                  By:  /s/ Linda M. Stephens
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:     July 30      , 2002
                                        -----------------

<PAGE>

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

                                  By:  /s/ K. Glasscock
                                       ----------------------------------------
                                               Authorized Officer
                                               K. Glasscock
                                               VP & Manager

                                  Date:     July 30      , 2002
                                        -----------------

<PAGE>

                                  FLEET NATIONAL BANK
                                  f/k/a Bank Boston, N.A.

                                  By:
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  SOCIETE GENERALE, SOUTHWEST AGENCY

                                  By:  /s/ J. Douglas McMurrey, Jr.
                                       ----------------------------------------
                                               Authorized Officer
                                           J. Douglas McMurrey, Jr.
                                               Managing Director

                                  Date:      July 31     , 2002
                                        -----------------

<PAGE>

                                  TORONTO DOMINION (TEXAS), INC.

                                  By:  /s/ Ann S. Slanis
                                       ----------------------------------------
                                               Authorized Officer
                                               Ann S. Slanis
                                               Vice President

                                  Date:     July 31      , 2002
                                        -----------------

<PAGE>

                                  UBS AG, STAMFORD BRANCH

                                  By:
                                       ----------------------------------------
                                               Authorized Officer

                                  By:
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  WELLS FARGO BANK TEXAS, N.A.

                                  By:  /s/ J. Alan Alexander
                                       ----------------------------------------
                                               Authorized Officer
                                               J. Alan Alexander
                                               Vice President

                                  Date:     July 30      , 2002
                                        -----------------

<PAGE>

                                  WESTDEUTSCHE LANDESBANK GIRONZENTRALE,
                                  NEW YORK BRANCH

                                  By:  /s/ [ILLEGIBLE]
                                       ----------------------------------------
                                               Authorized Officer

                                  By:  /s/ [ILLEGIBLE]
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  CREDIT AGRICOLE INDOSUEZ

                                  By:  /s/ [ILLEGIBLE]
                                       ----------------------------------------
                                               Authorized Officer

                                  By:  /s/ [ILLEGIBLE]
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:     07/30        , 2002
                                        -----------------

<PAGE>

                                  SUNTRUST BANK

                                  By:  /s/ [ILLEGIBLE]
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:     July 31      , 2002
                                        -----------------

<PAGE>

                                  ARAB BANKING CORPORATION (B.S.C.)

                                  By:  /s/ [ILLEGIBLE]
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:   August 1st     , 2002
                                        -----------------

<PAGE>

                                  BANK OF CHINA, NEW YORK BRANCH

                                  By:
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  BANK OF OKLAHOMA, N.A.

                                  By:  /s/ Robert D. Mattax
                                       ----------------------------------------
                                               Robert D. Mattax
                                               Senior Vice President

                                  Date:      July 30     , 2002
                                        -----------------

<PAGE>

                                  BNP PARIBAS, HOUSTON AGENCY

                                  By:  /s/ Barton D. Schouest
                                       ----------------------------------------
                                               Barton D. Schouest
                                               Managing Director

                                  By:  /s/ Greg Smothers
                                       ----------------------------------------
                                               Greg Smothers
                                               Vice President

                                  Date:     July 31      , 2002
                                        -----------------

<PAGE>

                                DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK,

                                By:
                                     ----------------------------------------
                                             Authorized Officer

                                By:
                                     ----------------------------------------
                                             Authorized Officer

                                Date:                  , 2002
                                      -----------------

<PAGE>

                                  KBC BANK N.V.

                                  By:  /s/ Jean-Pierre Diels
                                       ----------------------------------------
                                               Authorized Officer
                                               Jean-Pierre Diels
                                               First Vice President

                                  By:  /s/ Eric Raskin
                                       ----------------------------------------
                                               Authorized Officer
                                               Eric Raskin
                                               Vice President

                                  Date:                  , 2002
                                        -----------------

<PAGE>

                                  FIRST UNION NATIONAL BANK

                                  By:
                                       ----------------------------------------
                                               Authorized Officer

                                  Date:                  , 2002
                                        -----------------

                                  SUMITOMO MITSUI BANKING CORPORATION

                                  By:  /s/ John Kissinger
                                       ----------------------------------------
                                           John Kissinger
                                           General Manager

                                  Date:    July 31       , 2002
                                        -----------------

                                  COMMERCE BANK, N.A.

                                  By:  /s/ Dennis R. Block
                                       ----------------------------------------
                                           Dennis R. Block, SVP

                                  Date:     July 30      , 2002
                                        -----------------

                                  WACHOVIA BANK, NATIONAL ASSOCIATION

                                  By:  /s/ David E. Humphreys
                                       ----------------------------------------
                                           David E. Humphreys
                                           Vice President

                                  Date:    7/30          , 2002
                                        -----------------

<PAGE>

ACKNOWLEDGED
AND ACCEPTED BY
(with respect to Section 3):

CITICORP USA, INC.

By:
    ---------------------------------
            Authorized Officer

Date:                    , 2002
      ------------------

<PAGE>

ANNEX A

                                   SCHEDULE VI

                                 PERMITTED LIENS

(a) (i) Any Lien existing on any property at the time of the acquisition thereof
and not created in contemplation of such acquisition by any Borrower or any of
its Subsidiaries, whether or not assumed by any Borrower or any of its
Subsidiaries, (ii) purchase money, construction or analogous Liens securing
obligations incurred in connection with or financing the direct or indirect
costs of or relating to the acquisition, construction (including design,
engineering, installation, testing and other related activities), development
(including drilling), improvement, repair or replacement of property (including
such Liens securing Debt or other obligations incurred in connection with the
foregoing or within 30 days of the later of (x) the date on which such Property
was acquired or construction, development, improvement, repair or replacement
thereof was complete or (y) if applicable, the final "in service" date for
commencement of full operations of such property), provided that all such Liens
attach only to the property acquired, constructed, developed, improved or
repaired or constituting replacement property, and the principal amount of the
Debt or other obligations secured by such Lien, together with the principal
amount of all other Debt secured by a Lien on such property, shall not exceed
the gross acquisition, construction, replacement and other costs specified above
of or for the property, (iii) Liens on receivables created pursuant to a sale,
securitization or monetization of such receivables, and Liens on rights of any
Borrower or any Subsidiary related to such receivables which are transferred to
the purchaser of such receivables in connection with such sale, securitization
or monetization; provided that the Liens secure only the obligations of any
Borrower or any of its Subsidiaries in connection with such sale, securitization
or monetization, (iv) Liens created by or reserved in any operating lease
(whether for real or personal property) entered into in the ordinary course of
business (excluding Synthetic Leases) provided that the Liens created thereby
(1) attach only to the Property leased to any Borrower or one of its
Subsidiaries, pursuant to such operating lease and (2) secure only the
obligations under such lease and supporting documents that do not create
obligations other than with respect to the leased property (including for rent
and for compliance with the terms of the lease), (v) Liens on property subject
to a Capital Lease created by such Capital Lease and securing only obligations
under such Capital Lease and supporting documents that do not create obligations
other than with respect to the leased property, (vi) any interest or title of a
lessor in the property subject to any Capital Lease, Synthetic Lease or
operating lease, (vii) Liens in the form of filed Uniform Commercial Code or
personal property security statements (or similar filings outside Canada and the
United States) to perfect any Permitted Lien, and (viii) Liens on up to four
aircraft owned or leased by any Borrower or any Subsidiary of any such Borrower.

(b) Any Lien existing on any property of a Subsidiary of any Borrower at the
time it becomes a Subsidiary of such Borrower and not created in contemplation
thereof and any Lien existing on any property of any Person at the time such
Person is merged or liquidated into or consolidated with any such Borrower or
any Subsidiary thereof and not created in contemplation thereof.

<PAGE>

(c) Mechanics', materialmen's, workmen's, warehousemen's, carrier's, landlord's
or other similar Liens arising in the ordinary course of business securing
amounts incurred in the ordinary course of business which are not more than 90
days past due or are being contested in good faith by appropriate proceedings.

(d) Liens arising by reason of pledges, deposits or other security to secure
payment of workmen's compensation insurance or unemployment insurance, pension
plans or systems and other types of social security, and good faith deposits or
other security to secure tenders or leases of property or bids, in each case to
secure obligations of any Borrower or any of its Subsidiaries under such
insurance, tender, lease, bid or contract, as the case may be; provided,
however, that the only Liens permitted by this paragraph (d) shall be Liens
incurred in the ordinary course of business that do not secure any Debt or
accounts payable (other than accounts payable to the counterparties or obligees
applicable to the foregoing).

(e) Liens on deposits or other security given to secure public or statutory
obligations, or to secure or in lieu of surety bonds (other than appeal bonds)
and deposits as security for the payment of taxes or assessments or other
similar charges, in each case to secure obligations of any Borrower or any of
its Subsidiaries arising in the ordinary course of business; provided, however,
that the aggregate amount of obligations secured by Liens permitted by this
paragraph (e) shall not exceed 10% of Consolidated Tangible Net Worth of the
Borrower.

(f) Any Lien 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 (i) as a condition to the transaction by any Borrower or
any of its Subsidiaries of any business or the exercise by any Borrower or any
of its Subsidiaries of any privilege or license, (ii) to enable any Borrower or
any of its Subsidiaries to maintain self-insurance or to participate in any fund
for liability on any insurance risks or (iii) in connection with workmen's
compensation, unemployment insurance, old age pensions or other social security
with respect to any Borrower or any of its Subsidiaries to share in the
privileges or benefits required for companies participating in such
arrangements.

(g) Liens incurred in the ordinary course of business upon rights-of-way
securing obligations (other than Debt and trade payables) of any Borrower or any
of its Subsidiaries.

(h) Undetermined mortgages and charges incidental to construction or maintenance
arising in the ordinary course of business which are not more than 90 days past
due or are being contested in good faith by appropriate proceedings.

(i) 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.

(j) The Lien of taxes, customs duties or other governmental charges or
assessments that are not at the time determined (or, if determined, are not at
the time delinquent), or that are delinquent but the validity of which is being
contested in good faith by any Borrower or any of its Subsidiaries by
appropriate proceedings and with respect to which reserves in conformity

<PAGE>

with generally accepted accounting principles, if required by such principles,
have been provided on the books of the Borrower or the relevant Subsidiary of
any Borrower, as the case may be.

(k) The Lien reserved in (i) leases entered into in the ordinary course of
business for rent and for compliance with the terms of the lease in the case of
real or personal property leasehold estates or (ii) leases and sub-leases
granted to others that do not materially interfere with the ordinary course of
business of any Borrower and its Subsidiaries, taken as a whole.

(l) Defects and irregularities in the titles to any property (including
rights-of-way and easements) which are not material to the business, assets,
operations or financial condition of any Borrower and its Subsidiaries, taken as
a whole.

(m) Easements, exceptions or reservations in any property of any Borrower or any
of its Subsidiaries granted or reserved in the ordinary course of business for
the purpose of pipelines, roads, equipment, streets, alleys, highways,
railroads, 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, or in favor of governmental authorities or public utilities, in each
case above which do not materially impair the use of such property for the
purposes for which it is held by any Borrower or such Subsidiary.

(n) Rights reserved to or vested in any municipality or public authority to
control or regulate any property of any Borrower or any of its Subsidiaries, 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 any Borrower or such
Subsidiary.

(o) Any obligations or duties, affecting the property of any Borrower or any of
its Subsidiaries, to any municipality or public authority with respect to any
franchise, grant, license or permit.

(p) The Liens of any judgments in an aggregate amount for any Borrower and all
of its Subsidiaries (i) not in excess of $8,500,000, the execution of which has
not been stayed and (ii) not in excess of $40,000,000, the execution of which
has been stayed and which have been appealed and secured, if necessary, by a
stay or appeal bond or other security of similar effect and stay or appeal bonds
in respect of the judgments permitted in clause (ii).

(q) Zoning laws and ordinances.

(r) Liens existing on July 1, 2002, that secure only Debt and other obligations
incurred or committed and available for draw down on or prior to or outstanding
on July 1, 2002 and listed on Schedule IX as secured by such Liens.

(s) Liens existing on July 1, 2002 (i) that cover only immaterial assets and
(ii) that secure only Debt and other obligations incurred or committed and
available for draw down on or prior to or outstanding on July 1, 2002.

(t) Liens reserved in customary oil, gas and/or mineral leases for bonus or
rental payments and for compliance with the terms of such leases and Liens
reserved in customary operating agreements, farm-out and farm-in agreements,
exploration agreements, development agreements

<PAGE>

and other similar agreements for compliance with the terms of such agreements;
provided that (i) such Liens do not secure Debt or accounts payable (other than
obligations under such lease or agreement, as the case may be) and (ii) such
leases and agreements are entered into in the ordinary course of business.

(u) Liens arising in the ordinary course of business out of all presently
existing and future division and transfer orders, advance payment agreements,
processing contracts, gas processing plant agreements, operating agreements, gas
balancing or deferred production agreements, participation, joint venture, joint
operating, pooling, unitization or communitization agreements, pipeline,
gathering or transportation agreements, platform agreements, drilling contracts,
injection or repressuring agreements, cycling agreements, construction
agreements, salt water or other disposal agreements, leases, sub-leases or
rental agreements, royalty interests, overriding royalty interests, farm-out and
farm-in agreements, exploration and development agreements, and any and all
other contracts or agreements covering, arising out of, used or useful in
connection with or pertaining to the exploration, development, operation,
production, sale, use, purchase, exchange, storage, separation, dehydration,
treatment, compression, gathering, transportation, processing, improvement,
marketing, disposal or handling of any property of a Person (each such order,
agreement or contract being a "Subject Document"), provided that and to the
extent that (i) such Subject Documents are entered into the ordinary course of
business and contain terms customary for such documents in the industry, (ii)
such permitted Liens shall not include any security interests in accounts
receivable or other receivables and do not secure Debt or accounts payable
(other than accounts payable arising under the particular Subject Document that
creates the Lien), and (iii) such Subject Documents do not create nor do such
Liens secure Financing Transactions.

(v) Liens arising by law under Section 9.343 of the Texas Uniform Commercial
Code or similar statutes of states other than Texas.

(w) Liens arising pursuant to the L/C Collateral Documents which secure the
obligations of the Borrowers and their Subsidiaries under this Agreement and
the L/C Agreement and certain public debt of TWC.

(x) Liens in existence prior to the date hereof in the nature of a right of
offset or netting of cash amounts owed arising in the ordinary course of
business (and Liens on the trading receivables owed by any trading counterparty
and/or affiliate thereof to a Borrower or any affiliate thereof granted by a
Borrower or any such affiliate thereof under agreements commonly in use in the
industry of a Borrower or such affiliate, but solely to secure the offset or
netting rights of such trading counterparty and/or affiliates thereof to the
payment of such trading receivables arising from and to the extent of the
trading obligations of a Borrower or any affiliate thereof to such trading
counterparty or its affiliates).

(y) Any Lien not permitted by paragraphs (a) through (x) above or (z) through
(ii) below securing Debt of the Borrower or any of its Subsidiaries if at the
time of, and after giving effect to, the creation or assumption of any such
Lien, the aggregate (without duplication) of the principal or equivalent amount
of all Debt of a Borrower and its Subsidiaries secured by all such Liens not so
permitted by paragraphs (a) through (x) above or (z) through (ii) below plus the
amount of Attributable Obligations (other than those relating to Liens described
in clause

<PAGE>

(a)(viii)) of a Borrower and its Subsidiaries in respect of Sale and Lease-Back
Transactions permitted by Section 5.02(l) which does not exceed $100,000,000.

(z) To the extent applicable, any overriding royalties or other rights of
Pacific Northwest Pipeline Corporation, a Delaware corporation ("Pacific") and
Phillips Petroleum Company ("Phillips") or their respective successors in
interest under a contract dated January 9, 1953, as amended, between Phillips
and Pacific, to which the Borrower is successor in interest; and the obligations
of the Borrower to surrender, transfer, release or reassign the leases or
interests or rights to which said instruments relate under the conditions and
upon the occurrence of the events specified in said instruments.

(aa) Any option or other agreement to purchase any property of any Borrower or
any Subsidiary the purchase, sale or other disposition of which is not
prohibited by any other provision of this Agreement.

(bb) Liens securing reimbursement obligations with respect to letters of credit
that encumber documents and other property relating to such letters of credit
and the proceeds and products thereof.

(cc) Liens on the products and proceeds (including insurance, condemnation and
eminent domain proceeds) of and accessions to, and contract or other rights
(including rights under insurance policies and product warranties) derivative of
or relating to, property permitted to be subject to Liens under this Agreement
but subject to the same restrictions and limitations herein set forth as to
Liens on such property (including the requirement that such Liens on products,
proceeds, accessions and rights secure only obligations that such property is
permitted to secure).

(dd) Liens on the Property of a Project Finance Subsidiary or the Equity
Interests in such Project Finance Subsidiary securing the Non-Recourse Debt of
such Project Finance Subsidiary.

(ee) Liens on cash and short-term investments incurred in the ordinary course
of business, consistent with past practices and not for the purpose of securing
Debt (i) deposited by any Borrower or any of its Subsidiaries in margin
accounts with or on behalf of futures contract brokers or other counterparties
or (ii) pledged by any Borrower or any of its Subsidiaries, in the case of each
of clauses (i) and (ii) above, to secure its obligations with respect to (x)
contracts (including without limitation, physical delivery, option (whether
cash or financial), exchange, swap and futures contracts) for the purchase or
sale of any energy-related commodity or (y) interest rate or currency rate
management contracts.

(ff) Liens securing Debt of Williams Energy Partners LP and/or its
Subsidiaries; provided that such Liens shall only apply to assets owned
directly by Williams Energy Partners LP and/or its Subsidiaries.

(gg) Liens securing the Barrett Loan.

(hh) Liens securing Permitted Refinancing Debt (as defined below) (and related
obligations) covering the substantially the same collateral ) securing
(immediately prior to such refinancing) the Debt Refinanced (as defined below)
by such Permitted Refinancing Debt; provided that: (i) the principal amount of
such Permitted Refinancing Debt does not exceed the principal amount of the Debt
Refinanced (plus the amount of penalties, premiums (including required premiums
and the amount of any premiums reasonably determined by any Borrower being in
its best economic interest and as necessary to accomplish such Refinancing by
means of a tender offer or privately negotiated repurchase), fees, accrued
interest and reasonable expenses and other obligations incurred in connection
therewith) at the time of refinancing; and (ii) such Debt is incurred either by
any Borrower or by such Subsidiary that is the obligor of the Debt being
Refinanced. "Permitted Refinancing Debt" means any Debt (other than Debt
referred to clause

<PAGE>

(gg) above) of any Borrower or any of its Subsidiaries issued to Refinance other
Debt of the Borrower or any such Subsidiaries. "Refinance" means, in respect of
any Debt (other than Debt referred to clause (gg) above), to refinance, extend,
renew, refund, repay, prepay, replace, acquire, redeem, defease or retire, or to
issue other Debt in exchange or replacement, directly or indirectly for, such
Debt in whole or in part.

(ii) Liens extending, renewing or replacing any of the foregoing Liens (other
than Liens referred to in clause (gg) above), provided that the principal amount
of the Debt or other obligation secured by such Lien is not increased or the
maturity thereof shortened and such Lien is not extended to cover any additional
Debt, obligations or property, other than like obligations of no greater
principal amount and the substitution of like property (or specific categories
of property of the same grantor to the extent the terms of the Lien being
extended, renewed or replaced, extended to or covered such categories of
property) of no greater value.

<PAGE>
                                     ANNEX B

                                   SCHEDULE XI

                                RATING CATEGORIES

Pricing:          Pricing is based upon the lower rating from S&P and Moody's,
                  with respect to TWC's senior unsecured long-term debt. The
                  pricing grid is as follows:

EURODOLLAR RATE ADVANCES

<Table>
<Caption>
                                                                 APPLICABLE MARGIN
RATING                                                 --------------------------------------
CATEGORY          S&P OR MOODY'S RATINGS OF THE        < or = to 25% OF             >25% OF             APPLICABLE
OF THE             SENIOR UNSECURED LONG-TERM             COMMITMENTS              COMMITMENTS          COMMITMENT
BORROWER              DEBT OF THE BORROWER                   DRAWN                    DRAWN              FEE RATE
--------          -----------------------------        ----------------            -----------          ----------
<S>               <C>                                    <C>                      <C>                   <C>
  One                BB+ or Ba1 or higher                    3.00%                    3.25%                 .75%
  Two                      BB or Ba2                         3.50%                    3.75%                .875%
 Three                    BB- or Ba3                         4.00%                    4.25%                1.00%
  Four                     B+ or B1                          4.25%                    4.50%                1.25%
  Five                   B or B2 or lower                    4.50%                    4.75%                1.50%
</Table>

BASE RATE ADVANCES

<Table>
<Caption>
                                                                  APPLICABLE MARGIN
RATING                                                 --------------------------------------
CATEGORY        S&P OR MOODY'S RATINGS OF THE          < or = to 25% OF              >25% OF             APPLICABLE
OF THE           SENIOR UNSECURED LONG-TERM               COMMITMENTS              COMMITMENTS           COMMITMENT
BORROWER             DEBT OF THE BORROWER                    DRAWN                    DRAWN              FEE RATE
--------        -----------------------------          ----------------            -----------           ----------
<S>               <C>                                    <C>                      <C>                   <C>
  One                BB+ or Ba1 or higher                    1.75%                    2.00%                 .75%
  Two                      BB or Ba2                         2.25%                    2.50%                .875%
 Three                    BB- or Ba3                         2.75%                    3.00%                1.00%
  Four                     B+ or B1                          3.00%                    3.25%                1.25%
  Five                   B or B2 or lower                    3.25%                    3.50%                1.50%
</Table>

<PAGE>

                                     ANNEX C

                                  SCHEDULE XII

                               PROGENY FACILITIES

$200,000,000 Parent Support Agreement dated as of December 23, 1998, made by The
Williams Companies, Inc. in favor of Castle Associates L.P. and Colchester LLC
and the other Indemnified Persons listed therein, as amended.

Amended and Restated Guarantee dated as of July 25, 2000, issued by The Williams
Companies, Inc. for the benefit of The Commonwealth Plan, Inc. and CBL Capital
Corporation, as amended. WFS-Pipeline Company, as lessee and Commonwealth, as
lessor entered into a Lease Agreement dated as of December 29, 1995.
WFS-Offshore Gathering Company, as lessee, and CBL, as lessor, entered into a
Lease Agreement dated December 29, 1995, as amended and restated.

$400,000,000 Term Loan Agreement dated as of April 7, 2000, among The Williams
Companies, Inc., as Borrower, and Credit Lyonnais New York Branch, as
Administrative Agent, and the Lenders named therein, as amended.

$192,570,931 aggregate Second Amended and Restated Participation Agreements (2
separate leases) dated as of January 28, 2002, among Williams Oil Gathering,
L.L.C. and Williams Field Services - Gulf Coast Company, L.P., as Lessees,
Williams Field Services Company, as Construction Agent, The Williams Companies,
Inc., as Guarantor, First Security Bank, N.A. as Certificate Trustee, Wells
Fargo Bank Nevada, N.A., as Collateral Agent, Bank of America, N.A., as
Administrative Agent and Administrator, and financial institutions named therein
as Certificate Holders, as amended.

$200,000,000 Term Loan Agreement dated as of January 29, 1999, among The
Williams Companies, Inc., as Borrower, and The Fuji Bank, Limited, as
Administrative Agent, and the Banks named therein, as amended.

The Prairie Wolf Facility.

Letter of Credit and Reimbursement Agreement dated as of May 15, 1994, among
Tulsa Parking Authority, The Williams Companies, Inc., Bank of Oklahoma,
National Association, and Bank of America, N.A. (formerly Nationsbank of Texas,
N.A.), relative to Tulsa Parking Authority First Mortgage Revenue Bonds, as
amended.

$127,000,000 Master Agreement dated as of March 6, 2000, among The Williams
Companies, Inc., as Guarantor, Williams TravelCenters, Inc., as Lessee, Atlantic
Financial Group, Ltd., as Lessor, SunTrust Bank, as Agent, and the Lenders named
therein, as amended.

<PAGE>

$100,000,000 PPH Sponsor Agreement dated as of December 31, 2001, by The
Williams Companies, Inc., as Sponsor, in favor of Piceance Production Holdings
LLC, Plowshare Investors LLC, and other Indemnified Persons listed in the
agreement, as amended.

Legacy L/C's.

All documents, instruments, agreements, certificates and notices at any time
executed and/or delivered in connection with any of the foregoing.

<PAGE>

                                     ANNEX D

                                  SCHEDULE XIII

                               POST-CLOSING ITEMS

         1. Consents, Licenses and Approvals. All governmental and third party
approvals (including consents) necessary in connection with the continuing
operations of the Borrower and its Midstream Subsidiaries and the execution,
delivery and performance of the Credit Documents shall have been obtained and be
in full force and effect, and all applicable waiting periods shall have expired
without any action being taken or threatened by any competent authority which
would restrain, prevent or otherwise impose adverse conditions on the execution
and delivery of the Credit Documents or the financing thereof, including,
without limitation, this Agreement. TO BE REQUESTED 10 DAYS AFTER THE DATE OF
THIS AGREEMENT.

         2. Legal Opinions. The Agent shall have received, with a counterpart
for each Issuing Bank, the executed legal opinions of local counsel to the
Agents in the States of Colorado, New Mexico and Wyoming, such other states as
requested by Agent which such legal opinions shall cover such matters incident
to the perfection of the Liens and the other transactions contemplated by the
Agreement as the Agent may reasonably require. TO BE DELIVERED 15 DAYS AFTER THE
DATE OF THIS AGREEMENT.

         3. Actions to Perfect Liens. The Agent shall have received properly
completed and executed financing statements (or other similar documents),
including, without limitation, duly executed financing statements on form UCC-1,
necessary or, in the opinion of the Collateral Agent, desirable to perfect the
Liens created by the Security Documents, and the Collateral Agent shall be
reasonably satisfied that, other than filing such financing statements and other
similar documents and the Mortgages, no other filings, recordings, registrations
or other actions are necessary or, in the opinion of the Collateral Agent,
desirable to perfect the Liens created by the Security Documents. TO BE
COMPLETED 60 DAYS AFTER THE DATE OF THIS AGREEMENT.

         4. Surveys. At the request of the Agent, the Agent shall have received
boundary line surveys of (i) the property leased by the Borrower and the
Midstream Subsidiaries located in the States of Alaska, Arkansas, Colorado, New
Mexico, Tennessee, and Wyoming, and such other states as may be designated by
the Agent, (ii) the real property owned by Borrower and the Midstream
Subsidiaries located in the States of Alaska, Arkansas, Colorado, New Mexico,
Tennessee, and Wyoming, and such other states as may be designated by the Agent,
other than the Gathering Systems which boundary line surveys shall in each case
be (A) dated a date reasonably close to the date of the Agreement (as determined
by the Agent), (B) prepared by an independent professional licensed land
surveyor reasonably satisfactory to the Agent, (C) prepared in a manner
reasonably acceptable to the Agent and (D) shall reflect that the buildings,
structures and other improvements necessary for the ownership and operation of
the

<PAGE>

processing plants purported to be located on the property surveyed do not
protrude on any adjoining property nor do any improvements located on land
adjacent to the property surveyed encroach upon the property surveyed, which
encroachments or protrusions in either case could reasonably be expected to
adversely affect the ability of the Borrower or the Midstream Subsidiaries to
own, maintain, operate or sell the property surveyed and/or the improvements
located thereon. The Agent shall have received a certificate of an authorized
officer of the Borrower certifying said boundary line surveys are true and
correct as of the date of the Agreement. TO BE COMPLETED 60 DAYS AFTER REQUEST
BY THE AGENT.

         5. Flood Insurance. If requested by the Agent, the Agent shall have
received a policy of flood insurance in form and substance satisfactory to the
Agent. TO BE COMPLETED 60 DAYS AFTER THE DATE OF THIS AGREEMENT.

         6. Copies of Documents. If requested by the Agent, the Agent shall have
received a copy, certified by such parties as the Agent may deem appropriate, of
any document burdening the property covered by any Mortgage. TO BE COMPLETED 30
DAYS AFTER THE DATE OF THIS AGREEMENT.

         7. Lien Searches. The Agent shall have received the results of recent
lien searches by Persons reasonably satisfactory to the Agent, in each of the
jurisdictions and offices where assets of the Borrower or any of the Midstream
Subsidiaries are located or recorded, and such searches shall reveal no Liens on
any assets of the Borrower or any such Subsidiary, except for (i) Liens
permitted by the Agreement and (ii) Liens to be released or assigned to the
Agent, for the ratable benefit of the Banks, on the date of the Agreement in
connection with the execution, delivery and performance of the Credit Documents.
TO BE COMPLETED 30 DAYS AFTER THE DATE OF THIS AGREEMENT.

         8. Insurance. The Agent shall have received (i) copies of, or an
insurance broker's or agent's certificate as to coverage under, the insurance
policies required by the Agreement and the applicable provisions of the Security
Documents, each of which policies shall be endorsed or otherwise amended to
include a "standard" or "New York" lender's loss payable endorsement and to name
the Agent as additional insured, in form and substance satisfactory to the
Collateral Agent and (ii) confirmation from such insurance broker that the scope
and amount of coverage maintained by the Borrower and its Subsidiaries are
comparable to the scope and amount of the insurance maintained by other
companies of similar size in the same industry and general location. TO BE
COMPLETED 30 DAYS AFTER THE DATE OF THIS AGREEMENT.

         9. Solvency. If requested by the Agent, the Agent shall have received
(i) a satisfactory solvency opinion from an independent valuation firm
satisfactory to the Issuing Banks which shall document the solvency of the
Borrower and its Subsidiaries, on a consolidated basis, after giving effect to
the execution, delivery and performance of the Credit Documents, the other
transactions contemplated thereby and the extensions of credit contemplated
hereby and (ii) a certificate from the chief financial officer of the

<PAGE>

Borrower (in his capacity as chief financial officer) as to the solvency of each
of the Borrower and its Subsidiaries, on a consolidated basis, after giving
effect to the execution, delivery and performance of the Credit Documents, the
other transactions contemplated hereby and the extensions of credit contemplated
hereunder. TO BE COMPLETED 60 DAYS AFTER THE DATE OF THIS AGREEMENT.

         10. Environmental Reports. If requested by the Agent, the Agent shall
have received environmental assessment reports from E.vironment, Inc. with
respect to processing, refining and other facilities and other parcels of real
property owned or leased by the Borrower and the Midstream Subsidiaries, and the
Issuing Banks shall be reasonably satisfied with the potential environmental
liabilities to which the Borrower and its Subsidiaries may be subject based on
such reports. TO BE COMPLETED 60 DAYS AFTER THE DATE OF THIS AGREEMENT.

         11. Title Vested in Borrower. The Agent and the Issuing Banks shall be
reasonably satisfied that all filings and other actions required to be taken or
made in order to vest title to all of the Properties of the Borrower and the
Midstream Subsidiaries shall have been taken or made and are in full force and
effect. TO BE COMPLETED 60 DAYS AFTER THE DATE OF THIS AGREEMENT.

         12. Mortgages. The Collateral Agent shall receive, on or before August
9, 2002, evidence of the completion of all recordings and filings of each
initial "Mortgage" (as defined in the L/C Agreement)(which "initial" Mortgages
consist of Mortgages filed in Colorado, Wyoming and New Mexico) as may be
necessary, in the opinion of the Collateral Agent, to perfect the Liens in favor
of the Collateral Agent created by such Mortgages. Thereafter, the Collateral
Agent shall receive, within fifteen Business Days of the delivery of any
additional Mortgage to the Borrower, evidence of such recordings and filings as
may be necessary, in the opinion of the Collateral Agent, to perfect the Liens
in favor of the Collateral Agent created by such additional Mortgage. Upon the
request of Collateral Agent, the Borrower shall provide all assistance as may be
necessary in connection with the preparation of the Mortgages.

         13. Consents to the Pledging of Excluded Equity Interest. TWC shall use
its best efforts to obtain all third party consents necessary to pledge the
Excluded Equity Interests in (other than the Equity Interest in Williams Mobile
Bay Producer Services, L.L.C. and the Equity Interest of Williams Energy
Partners L.P. held by Williams GP LLC) pursuant to the Pledge Agreement. TO BE
REQUESTED 30 DAYS AFTER THE DATE OF THIS AGREEMENT AND TO BE PURSUED DILIGENTLY
THEREAFTER

         14. Additional Matters. All corporate and other proceedings, and all
documents, instruments and other legal matters in connection with the
transactions contemplated by this Agreement and the other Credit Documents shall
be satisfactory in form and substance to the Administrative Agent, and the
Administrative Agent shall have received such other documents and legal opinions
in respect of any aspect or consequence of the transactions contemplated hereby
or thereby as it shall reasonably request.

<PAGE>

                                     ANNEX E

                                  SCHEDULE XIV

                             MIDSTREAM SUBSIDIARIES

Delaware
--------
Williams Energy Services, L.L.C.
Williams Natural Gas Liquids, Inc.
Williams Midstream Natural Gas Liquids, Inc.
Williams Express, Inc. (a Delaware corporation)
Williams Field Services Group, Inc.
Williams Alaska Pipeline Company, L.L.C.
Williams Bio-Energy, L.L.C.
Williams Merchant Services Company, Inc.
Mapco, Inc.
WFS Enterprises, Inc.
WFS-Liquids Company
Williams Field Services Company
Williams Gas Processing Company
Williams Gas Processing - Wamsutter Company
North Padre Island Spindown, Inc.
Williams Ethanol Services, Inc.
Williams Energy Marketing & Trading Company
Worthington Generation, L.L.C.
Memphis Generation, L.L.C.
Gas Supply, L.L.C.
Williams Generation Company - Hazelton
Juarez Pipeline Company
MAPL Investments, Inc.
Williams Refining & Marketing, L.L.C.
Williams Memphis Terminal, Inc.
Williams Mid-South Pipelines, L.L.C.
Williams Olefins, L.L.C.
Williams Olefins Feedstock Pipelines, L.L.C.
Williams Generating Memphis, LLC
Williams Field Services-Gulf Coast Company, L.P.
Williams Gas Pipeline Company, L.L.C.
Williams Petroleum Pipeline Systems, Inc.
WFS - NGL Pipeline Company Inc.
WFS - Offshore Gathering Company
Baton Rouge Fractionators, L.L.C.
Tri-States NGL Pipeline, L.L.C.
WILPRISE Pipeline Company, L.L.C.

<PAGE>

Alaska
------
Williams Express, Inc. (an Alaska corporation)
Williams Alaska Petroleum, Inc.
Williams Alaska Air Cargo Properties, L.L.C.
Williams Lynxs Alaska CargoPort, L.L.C.

Texas
-----
Black Marlin Pipeline Company
Rio Grande Pipeline Company

Kansas
------
Nebraska Energy, L.L.C

<PAGE>

                                    EXHIBIT A

                              Please see attached.<PAGE>
                                                                   EXHIBIT 10.13

                                                                [EXECUTION COPY]

                                U.S. $400,000,000

                                CREDIT AGREEMENT

                            Dated as of July 31, 2002

                                      among

                          THE WILLIAMS COMPANIES, INC.

                                   as Borrower

                               CITICORP USA, INC.

                          as Agent and Collateral Agent

                              BANK OF AMERICA N.A.

                              as Syndication Agent

                                 CITIBANK, N.A.
                              BANK OF AMERICA N.A.

                                as Issuing Banks

                             THE BANKS NAMED HEREIN

                                    as Banks

                                    Arranger:

                            SALOMON SMITH BARNEY INC.

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                Page

<S>                                                                                             <C>
                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.1. Certain Defined Terms.................................................................1

SECTION 1.2. Computation of Time Periods..........................................................21

SECTION 1.3. Accounting Terms.....................................................................21

SECTION 1.4. Miscellaneous........................................................................21

SECTION 1.5. Ratings..............................................................................21

                                   ARTICLE II
                   AMOUNTS AND TERMS OF THE LETTERS OF CREDIT

SECTION 2.1. Fees.................................................................................22

SECTION 2.2. Reduction of the Commitments.........................................................22

SECTION 2.3. Prepayments..........................................................................22

SECTION 2.4. Increased Costs......................................................................23

SECTION 2.5. Payments and Computations............................................................24

SECTION 2.6. Taxes................................................................................25

SECTION 2.7. Sharing of Payments, Etc.............................................................27

SECTION 2.8. Optional Termination.................................................................28

SECTION 2.9. Extension of Termination Date........................................................28

SECTION 2.10. Letter of Credit Facility...........................................................29

                                   ARTICLE III
                                   CONDITIONS

SECTION 3.1. Conditions Precedent to Initial Issuance.............................................32

SECTION 3.2. Conditions Precedent to an Issuance of a Letter of Credit............................33
</Table>

                                      i
<PAGE>

<Table>
<S>                                                                                             <C>
                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

SECTION 4.1. Representations and Warranties of the Borrower.......................................34

                                    ARTICLE V
                            COVENANTS OF THE BORROWER

SECTION 5.1. Affirmative Covenants................................................................39

SECTION 5.2. Negative Covenants...................................................................44

                                   ARTICLE VI
                                EVENTS OF DEFAULT

SECTION 6.1. Events of Default....................................................................50

SECTION 6.2. LC Cash Collateral Accounts..........................................................52

                                   ARTICLE VII
                             [Intentionally Omitted]

                                  ARTICLE VIII
              THE AGENT; ISSUING BANK; The collateral Agent; OTHERS

SECTION 8.1. Agent's Authorization and Action.....................................................53

SECTION 8.2. Agent's Reliance, Etc................................................................53

SECTION 8.3. Issuing Bank's Reliance, Etc.........................................................54

SECTION 8.4. Rights...............................................................................54

SECTION 8.5. Bank Credit Decision.................................................................55

SECTION 8.6. Indemnification......................................................................55

SECTION 8.7. Successor Agent......................................................................55

SECTION 8.8. Collateral Agent's Authorization and Action..........................................56

SECTION 8.9. Collateral Agent's Reliance, Etc.....................................................56

SECTION 8.10. Collateral Agent and Its Affiliates.................................................56

SECTION 8.11. Bank Credit Decision................................................................57

SECTION 8.12. Certain Rights of the Collateral Agent..............................................57
</Table>

                                       ii

<PAGE>

<Table>
<S>                                                                                               <C>
SECTION 8.13. Collateral Agent Indemnification....................................................57

SECTION 8.14. Successor Collateral Agent..........................................................58

SECTION 8.15. Other Agents; the Arranger..........................................................58

                                   ARTICLE IX
                                  MISCELLANEOUS

SECTION 9.1. Amendments, Etc......................................................................59

SECTION 9.2. Notices, Etc.........................................................................59

SECTION 9.3. No Waiver; Remedies..................................................................60

SECTION 9.4. Costs and Expenses...................................................................60

SECTION 9.5. Right of Set-off.....................................................................61

SECTION 9.6. Binding Effect; Transfers............................................................61

SECTION 9.7. [Intentionally Omitted.].............................................................64

SECTION 9.8. Governing Law........................................................................64

SECTION 9.9. Interest.............................................................................64

SECTION 9.10. Execution in Counterparts...........................................................65

SECTION 9.11. Survival of Agreements, Representations and Warranties, Etc.........................65

SECTION 9.12. Undertaking; Post Closing Actions...................................................65

SECTION 9.13. Confidentiality.....................................................................65

SECTION 9.14. WAIVER OF JURY TRIAL................................................................66

SECTION 9.15. FORUM SELECTION AND CONSENT TO JURISDICTION.........................................66
</Table>

                       Schedules and Exhibits

Schedule I     --    Bank Information
Schedule II    --    Notice Information for Borrower
Schedule III   --    Permitted Liens
Schedule IV    --    Commitments
Schedule V     --    Rating Categories

                                iii

<PAGE>

Schedule VI    --    Existing Projects
Schedule VII   --    [Intentionally Omitted]
Schedule VIII  --    [Intentionally Omitted]
Schedule IX    --    Liens Securing Existing Debt/Obligations
Schedule X     --    Midstream Subsidiaries
Schedule XI    --    Progeny Facilities
Schedule XII   --    Post-Closing Items
Schedule XIII  --    Outstanding Letters of Credit

Exhibit A      --    Opinion of William G. von Glahn
Exhibit B-1    --    Opinion of Skadden, Arps, Slate, Meagher & Flom LLP
                     (Enforceability)
Exhibit B-2    --    Opinion of Skadden, Arps, Slate, Meagher & Flom LLP
                     (Perfection)
Exhibit C      --    Existing Loans and Investments in WCG Subsidiaries
Exhibit D      --    Form of Transfer Agreement
Exhibit E      --    Notice of Letter of Credit
Exhibit F      --    Form of Security Agreement
Exhibit G      --    Form of LLC Guaranty
Exhibit H      --    Form of Midstream Guaranty
Exhibit I      --    Form of Pledge Agreement
Exhibit J      --    Form of Holdings Guaranty

                                       iv

<PAGE>

                                CREDIT AGREEMENT

                  This Credit Agreement, dated as of July 31, 2002 (as may be
amended, modified, supplemented, renewed, extended or restated from time to
time, this "Agreement"), is by and among The Williams Companies, Inc. and its
Subsidiaries named herein and parties hereto, the various lenders as are or may
become parties hereto; the Issuing Bank, and Citicorp USA, Inc., as Agent and
Collateral Agent. In consideration of the mutual covenants and agreements
contained herein, the Borrower, the Agent and the Banks hereby agree as set
forth herein.

                             PRELIMINARY STATEMENTS

                  WHEREAS, the Borrower may from time to time request that an
Issuing Bank issue Letters of Credit pursuant to the terms and conditions and in
the amounts set forth herein.

                  WHEREAS, each Issuing Bank is willing, on the terms and
subject to the conditions hereinafter set forth (including Article III), to
issue Letters of Credit and each Bank is willing to hold a participation
interest in such Letters of Credit on the terms and subject to the conditions
hereinafter set forth (including Article III).

                  NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

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

                  "Acceptable Security Interest" in any property shall mean a
         Lien granted pursuant to a Credit Document (a) which exists in favor of
         either (i) the Collateral Trustee for the benefit of itself and other
         parties, as more fully described in the Collateral Trust Agreement or
         (ii) the Collateral Agent for the benefit of itself, the Agent, the
         Issuing Bank and the Banks, (b) which is superior to all other Liens,
         except Permitted Liens, (c) which secures (i) the "Secured Obligations"
         as defined in the Security Agreement and/or (ii) the Obligations, and
         (d) which is perfected and is enforceable by either (i) the Collateral
         Trustee for the benefit of itself and other parties, as more fully
         described in the Collateral Trust Agreement or (ii) the Collateral
         Agent, for the benefit of itself, the Agent, the Issuing Bank and the
         Banks, against all other Persons in preference to any rights of any
         such other Person therein; provided that such Lien may be subject to
         the Agreed Exceptions.

                  "Additional Mortgage" has the meaning specified in Section
5.1(f).

                  "Agent" means Citicorp USA, Inc. in its capacity as agent
         pursuant to Article VIII hereof and any successor Agent pursuant to
         Section 8.7.

<PAGE>

                  "Agreed Exceptions" means exceptions to title to be set forth
         in the Mortgage that are customary in similar mortgages, do not
         materially detract from the value of the assets covered thereby, do not
         secure Debt and arise in the ordinary course of business.

                  "Agreement" has the meaning specified in the first paragraph
         of this Agreement.

                  "American Soda" means American Soda, L.L.P., a Colorado
         limited liability partnership.

                  "Applicable Issued LC Margin" means, for purposes of Section
         2.1(b)(ii), the rate per annum set forth in Schedule V under the
         heading "Applicable Issued LC Margin" for the relevant Rating Category
         applicable to the Borrower from time to time, and the Applicable Issued
         LC Margin for purposes of Section 2.1(b)(ii) shall change when and as
         the relevant applicable Rating Category changes, provided that for each
         day on which the aggregate stated amount of the Letters of Credit
         issued and outstanding hereunder is equal to or greater than 25% of the
         aggregate amount of the total Letter of Credit Commitments hereunder,
         the Applicable Issued LC Margin for the Borrower shall be increased by
         0.250% for such day.

                  "Applicable LC Commitment Margin" means, for purposes of
         Section 2.1(b)(ii), the rate per annum set forth in Schedule V under
         the heading "Applicable LC Commitment Margin" for the relevant Rating
         Category applicable to the Borrower from time to time, and the
         Applicable LC Commitment Margin for purposes of Section 2.1(b)(ii)
         shall change when and as the relevant applicable Rating Category
         changes.

                  "Arranger" means Salomon Smith Barney Inc.

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

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

                  "Banks" means the lenders listed on the signature pages hereof
         and each other Person that becomes a Bank pursuant to the last sentence
         of Section 8.6(a).

                  "Barrett Loan" means that loans made pursuant to the Barrett
         Loan Agreement.

                  "Barrett Loan Agreement" means the Credit Agreement, dated as
         of July 31, 2002, among TWC, Williams Production Holdings LLC ("RMT
         LLC"), Williams Production RMT Company ("RMT"), the Lenders party
         thereto from time to time, Lehman Brothers Inc., as Arranger, and
         Lehman Commercial Paper Inc., as Syndication Agent and as
         Administrative Agent.

                                        2
<PAGE>

                  "Base Rate" means a fluctuating interest rate per annum as
         shall be in effect from time to time which rate per annum shall at all
         times be equal to the highest of:

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

                           (b) the sum (adjusted to the nearest 1/4 of 1% or, if
                  there is no nearest 1/4 of 1%, to the next higher 1/4 of 1%)
                  of (i) 1/2 of 1 percent per annum plus (ii) the rate obtained
                  by dividing (A) the latest three-week moving average of
                  secondary market morning offering rates in the United States
                  for three-month certificates of deposit of major United States
                  money market banks, such three-week moving average (adjusted
                  to the basis of a year of 360 days) being determined weekly on
                  each Monday (or, if such day is not a Business Day, on the
                  next succeeding Business Day) for the three week period ending
                  on the previous Friday by Citibank on the basis of such rates
                  reported by certificate of deposit dealers to and published by
                  the Federal Reserve Bank of New York or, if such publication
                  shall be suspended or terminated, on the basis of quotations
                  for such rates received by Citibank from three New York
                  certificate of deposit dealers of recognized standing selected
                  by Citibank, by (B) a percentage equal to 100% minus the
                  average of the daily percentages specified during such three
                  week period by the Federal Reserve Board for determining the
                  maximum reserve requirement (including, but not limited to,
                  any emergency, supplemental or other marginal reserve
                  requirement) for Citibank with respect to liabilities
                  consisting of or including (among other liabilities)
                  three-month Dollar non-personal time deposits in the United
                  States, plus (iii) the average during such three-week period
                  of the annual assessment rates estimated by Citibank for
                  determining the then current annual assessment payable by
                  Citibank to the Federal Deposit Insurance Corporation (or any
                  successor) for insuring Dollar deposits of Citibank in the
                  United States; and

                           (c) the sum of 1/2 of one percent per annum plus the
                  Federal Funds Rate in effect from time to time.

                  "Borrower" means TWC.

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

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

                  "Capital Lease" means a lease that in accordance with
         generally acceptable accounting principles must be reflected on a
         company's balance sheet as an asset and corresponding liability.

                                       3
<PAGE>

                  "Cash Collateralize" means, with respect to a Letter of
         Credit, the deposit of immediately available funds into the LC Cash
         Collateral Account in an amount equal to the stated amount of, and all
         Letter of Credit fees related to, such Letter of Credit.

                  "Cash Flow" means, for any period, the Consolidated cash flow
         from operations of the Borrower and its Subsidiaries for such period
         determined in accordance with generally accepted accounting principles;
         provided that in determining such Consolidated cash flow from
         operations, there shall be excluded therefrom (to the extent otherwise
         included therein) (a) any positive cash flow from operations of any
         Person (including Project Financing Subsidiaries) subject to any
         restriction prohibiting the distribution of cash to the Borrower or any
         of its Subsidiaries, except and then only to the extent of the amount
         thereof that the Borrower or any of its Subsidiaries actually receives
         or has the right to receive (within the limits of such restrictions)
         during such period, (b) proceeds resulting from the sale, transfer or
         other disposition of any property by the Borrower or its Subsidiaries
         (other than sales, transfers and other dispositions in the ordinary
         course of business), (c) all other extraordinary items, (d) any item
         constituting the cumulative effect of a change in accounting
         principles, prior to applicable income taxes, (e) repayment of the WCG
         Synthetic Lease and (f) for the third Fiscal Quarter of 2002 only,
         margin and capital or adequate assurances relating to its refining and
         marketing and EMT.

                  "Cash Equivalents" means any of the following, to the extent
         owned by the Borrower or any of its Subsidiaries free and clear of all
         Liens other than Liens created under the Collateral Documents and
         having a maturity of not greater than 270 days from the date of
         acquisition thereof: (a) readily marketable direct obligations of the
         Government of the United States or any agency or instrumentality
         thereof or obligations unconditionally guaranteed by the full faith and
         credit of the Government of the United States, (b) insured certificates
         of deposit of or time deposits with any commercial bank that is a
         Lender Party or a member of the Federal Reserve System, issues (or the
         parent of which issues) commercial paper rated as described in clause
         (c) below, is organized under the laws of the United States or any
         State thereof and has combined capital and surplus of at least $1
         billion or (c) commercial paper in an aggregate amount of no more than
         $500,000,000, per issuer outstanding at any time, issued by any
         corporation organized under the laws of any State of the United States
         and rated at least "Prime-1" (or the then equivalent grade) by Moody's
         Investors Service, Inc. or "A-1" (or the then equivalent grade) by
         Standard & Poor's, a division of The McGraw-Hill Companies, Inc.

                  "Citibank" means Citibank, N.A.

                  "Citicorp" means Citicorp USA, Inc.

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

                  "Collateral" means all personal and real property comprising
         the Midstream Assets of the Borrower, each Guarantor and each of the
         Midstream Subsidiaries whether now owned or hereafter acquired;
         provided that no real or personal property of RMT LLC or WGPC shall be
         included as "Collateral".

                                       4
<PAGE>

                  "Collateral Account" means a deposit account of the Borrower
         (i) with a commercial banking institution that is a member of the
         Federal Reserve System, has its short-term deposits rated A- or higher
         by Moody's or Standard & Poor's and has a combined capital, surplus and
         undivided profits of not less than $1,000,000,000, (ii) over which the
         Borrower has no control, (iii) in which an Acceptable Security Interest
         exists, (iv) as to which (if not held with the Collateral Agent)
         Borrower has complied with Sections 3.1 and 3.6 of the Security
         Agreement, and (v) deposits in which, if invested, may be invested only
         in those investments permitted under Section 5.2(g).

                  "Collateral Agent" means Citicorp in its capacity as
         Collateral Agent pursuant to Article VIII and any successor in such
         capacity pursuant to Section 8.14.

                  "Collateral Trust Agreement" means the Collateral Trust
         Agreement dated as of July 31, 2002 by and among the Company, several
         of its Subsidiaries and Citibank N.A., as Collateral Trustee, which
         Collateral Trust Agreement provides for certain collateral to be held
         by such Collateral Trustee for the benefit of the lenders, issuing
         banks and agents under this Agreement, the lenders, issuing banks and
         agents under the Multiyear Williams Credit Agreement and the holders of
         certain public debt of TWC.

                  "Collateral Trustee" means Citibank, N.A., in its capacity as
         Collateral Trustee under the terms of the Collateral Trust Agreement
         and its successors or assigns appointed pursuant to Article 5 of the
         Collateral Trust Agreement.

                  "Consolidated" refers to the consolidation of the accounts of
         any Person and its consolidated subsidiaries in accordance with
         generally accepted accounting principles.

                  "Consolidated Net Worth" of any Person means the Net Worth of
         such Person and its Subsidiaries on a Consolidated basis plus, in the
         case of the Borrower, the Designated Minority Interests to the extent
         not otherwise included; provided that in no event shall the value
         ascribed to Designated Minority Interests for the Subsidiaries of the
         Borrower described in clauses (i) through (v), (vii) and (viii) of the
         definition of "Designated Minority Interests" below exceed $136,892,000
         in the aggregate for the purposes of this definition. As used in this
         definition, "Designated Minority Interests" means, as of any date of
         determination, the total value, determined in accordance with generally
         accepted accounting principles, of the minority interests of Persons
         other than the Borrower and Subsidiaries of the Borrower in the
         following Subsidiaries of the Borrower: (i) El Furrial, (ii) PIGAP II,
         (iii) Nebraska Energy, (iv) Seminole, (v) American Soda, (vi) the
         Midstream Asset MLP, (vii) Apco Argentina, Inc. and (viii) other
         Subsidiaries with a value not to exceed in the aggregate $9,000,000 for
         such other Subsidiaries not referred to in items (i) through (vii);
         provided that minority interests which provide for a stated preferred
         cumulative return shall not be included in "Designated Minority
         Interests".

                  "Consolidated Tangible Net Worth" of any Person means the
         Tangible Net Worth of such Person and its Subsidiaries on a
         Consolidated basis.

                                       5
<PAGE>

                  "Credit Documents" means this Agreement, the Security
         Documents, the Letter of Credit Documents, each Letter of Credit, all
         documents, instruments, agreements, certificates and notices at any
         time executed and/or delivered to the Agent, the Collateral Trustee,
         any Issuing Bank, or any Bank in connection therewith.

                  "Debt" means, in the case of any Person, the principal or
         equivalent amount of (i) indebtedness of such Person for borrowed
         money, (ii) obligations of such Person evidenced by bonds, debentures,
         notes or similar instruments, (iii) obligations of such Person to pay
         the deferred purchase price of property or services (other than trade
         payables not overdue by more than 60 days incurred in the ordinary
         course of business), (iv) obligations of such Person as lessee under
         leases that are, in accordance with generally accepted accounting
         principles, recorded as capital leases, (v) payments necessary to
         exercise a purchase option with respect to the property used by such
         Person and encumbered by a Synthetic Lease with such Person as lessee,
         excluding any portion of such amount representing accrued interest,
         transfer taxes or other ancillary items, (vi) obligations of such
         Person under any Financing Transaction, (vii) indebtedness incurred
         after the date of this Agreement of the Subsidiaries of such Person,
         and indebtedness incurred after the date of this Agreement of any other
         entity that has been created or utilized, directly or indirectly, for
         financing purposes of such Person or any of its Subsidiaries, (viii)
         obligations of such Person under guaranties in respect of, and
         obligations (contingent or otherwise) to purchase or otherwise acquire,
         or otherwise to assure a creditor against loss in respect of
         indebtedness or obligations of others of the kinds referred to in
         clauses (i) through (vii) of this definition, (ix) indebtedness or
         obligations of others of the kinds referred to in clauses (i) through
         (viii) of this definition secured by any Lien on or in respect of any
         property of such Person and (x) any Attributable Obligations of such
         Person; provided, however, that Debt shall not include (w) any
         obligations of the Borrower in respect of the FELINE PACS; (x)
         [Intentionally Omitted]; (y) Non-Recourse Debt; (z) Performance
         Guaranties, (aa) monetary obligations or guaranties of monetary
         obligations of Persons as lessee under leases (other than, to the
         extent provided herein above, Synthetic Leases) that are, in accordance
         with generally accepted accounting principles, recorded as operating
         leases and (bb) guarantees by such Person of obligations of others
         which are not obligations described in clauses (i) through (x) of this
         definition, and provided further that where any such indebtedness or
         obligation of such Person is made jointly, or jointly and severally,
         with any third party or parties other than any Subsidiary of such
         Person, the amount thereof for the purpose of this definition only
         shall be the pro rata portion thereof payable by such Person, so long
         as such third party or parties have not defaulted on its or their joint
         and several portions thereof and can reasonably be expected to perform
         its or their obligations thereunder. For the avoidance of doubt, "Debt"
         shall include, without duplication, the principal amount of the
         obligations of the Borrower hereunder in respect of the Letters of
         Credit that have been drawn upon by the beneficiaries to the extent of
         the amount drawn.

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

                                       6
<PAGE>

                  "Designated Midstream Subsidiaries" means Nebraska Energy; Rio
         Grande Pipeline Company; Baton Rouge Fractionators, L.L.C.; Williams
         Lynxs Alaska CargoPort, L.L.C.; Tri-States NGL Pipeline, L.L.C;
         WILPRISE Pipeline Company, L.L.C.; Williams Energy Partners L. P.;
         Williams Alaska Air Cargo Properties, L.L.C.; Williams Mobile Bay
         Producer Services, L.L.C.; and Williams GP LLC.

                  "Designating Bank" has the meaning specified in Section
         8.6(g).

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

                  "EDGAR" means "Electronic Data Gathering, Analysis and
         Retrieval" system, a database maintained by the Securities and Exchange
         Commission containing electronic filings of issuers of certain
         securities.

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

                  "Eligible Assignee" means (i) any Bank, (ii) any affiliate of
         any Bank, (iii) in the case of an assignment during the continuance of
         an Event of Default, any fund that invests in bank loans, and (iv) any
         other Person not covered by clause (i), (ii) or (iii) of this
         definition that is consented to by the Borrower, the Agent and the
         Issuing Bank (which consents shall not be unreasonably withheld);
         provided that if any Default or Event of Default has occurred and is
         continuing, no consent of the Borrower shall be required; provided
         further that the Borrower nor any affiliate of the Borrower shall be an
         Eligible Assignee.

                  "EMT" means Williams Energy Marketing & Trading Company.

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

                  "Environmental Permits" mean any and all material permits,
         licenses, registrations, notifications, exemptions and any other
         authorization required under any Environmental Protection Statutes.

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

                  "Equity Interests" means any capital stock, partnership, joint
         venture, member or limited liability or unlimited liability company
         interest, beneficial interest in a trust or similar entity or other
         equity interest or investment of whatever nature.

                                       7
<PAGE>

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

                  "ERISA Affiliate" means any trade or business (whether or not
         incorporated) which is a member of a group of which the Borrower is a
         member and which is under common control within the meaning of Section
         414 of the Code and the regulations promulgated thereunder.

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

                  "Events of Default" has the meaning specified in Section 6.1.

                  "Excluded Collateral" means (i) all personal and real property
         owned by RMT LLC, WGPC and the Designated Midstream Subsidiaries and
         (ii) the Excluded Equity Interest.

                  "Excluded Equity Interests" means the Equity Interests in each
         of the Designated Midstream Subsidiaries (other than (i) Williams GP
         LLC and (ii) the Equity Interest of Williams Energy Partners L.P. held
         by Williams Energy Services, L.L.C. and Williams Natural Gas Liquids,
         Inc.); provided, however, as to each Designated Midstream Subsidiary,
         at such time as the Company obtains the consents provided for in
         Paragraph 13 of Schedule XII the Equity Interest of such Designated
         Midstream Subsidiary shall cease to be an "Excluded Equity Interest".

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

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

                  "FELINE PACS" means those certain units, as described in the
         Borrower's prospectus supplement dated January 7, 2002, issued by the
         Borrower in January, 2002 in an aggregate face amount of
         $1,100,000,000.

                  "Financing Transaction" means, with respect to any Person, any
         individual or group of related Persons (i) prepaid forward sales of
         oil, gas, minerals or other assets by such Person, (ii) interest rate,
         currency, commodity or other swaps, collars, caps, options or other
         derivatives or (iii) sales or transfers of assets, the primary effect
         of which or an important purpose of which is to receive money or credit
         in advance coupled with an obligation to repay or perform in the future
         to effect repayment thereof, including any contract monetization or
         production payment. Notwithstanding the foregoing, the

                                       8
<PAGE>

         following transactions, if entered into in the ordinary course of
         business by the Borrower or any of its affiliates and otherwise
         permitted hereunder, shall be deemed not to be Financing Transactions:
         (a) sales or exchanges of property fully delivered within 90 days of
         receipt of the first payment by a counterparty therefor, (b) interest
         rate, currency, commodity or other swaps, collars, caps, options or
         other derivatives (including prepayment of forward sales of property by
         a counterparty of the Borrower or any of its affiliates to hedge
         against the credit risk of such counterparty, provided that the forward
         delivery obligation with respect to the property sold must be fully
         performed within 120 days), and (c) "riskless" forward sales or
         exchanges of property whereby a third party guarantees the performance
         obligations of the Borrower or any of its affiliates to deliver such
         property without subrogation or other recourse against the Borrower or
         any of its affiliates by any party to the transaction. The term
         "contract monetization" as used in this definition means the
         acceleration of cash flows a contract party expects to receive from
         such contract pursuant to which the contract party retains a
         significant ongoing obligation to perform, but shall in any event
         exclude transactions commonly referred to as securitizations. The term
         "production payment" as used in this definition means a limited-term
         non-cost bearing right to receive produced hydrocarbons or the proceeds
         therefrom satisfiable in cash or in kind up to an aggregate defined
         amount of cash and/or hydrocarbons.

                  "Fiscal Quarter" means any quarter of a Fiscal Year.

                  "Fiscal Year" means any period of twelve consecutive calendar
         months ending on December 31; references to a Fiscal Year with a number
         corresponding to any calendar year (e.g., the "2002 Fiscal Year") refer
         to the Fiscal Year ending on December 31 of such calendar year.

                  "Fitch" means Fitch, Inc.

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

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

                  "Guaranties" means, collectively, the LLC Guaranty, the
         Midstream Guaranty and the Holdings Guaranty.

                  "Guarantor" and "Guarantors" means, individually and
         collectively, as applicable, RMT LLC, WGPC, EMT and each of the
         Midstream Subsidiaries.

                                       9
<PAGE>

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

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

                  "Hedge Agreements" means interest rate swap, cap or collar
         agreements, interest rate future or option contracts, currency swap
         agreements, currency future or option contracts and other hedging
         obligations.

                  "Holdings Guaranty" means a Guaranty executed by RMT LLC in
         substantially the form of Exhibit J, as amended, supplemented or
         modified from time to time.

                  "Hydrocarbons" means oil, gas, casinghead gas, condensate,
         distillate, and liquid hydrocarbons.

                  "Indemnified Parties" shall have the meaning set forth in
         Section 8.4(c).

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

                  "Interest Expense" means, for any period, the gross interest
         expense (determined in accordance with generally accepted accounting
         principles) of the Borrower and its Consolidated Subsidiaries accrued
         for such period, including that attributable to the capitalized amount
         of obligations owing under Capital Leases, all debt discount amortized
         in such period and all commissions, discounts and other fees and
         charges owed with respect to letters of credit and bankers' acceptance
         financing, net of interest income (determined in accordance with
         generally accepted accounting principles) of the Borrower and its
         Consolidated Subsidiaries, but excluding such interest expense, debt
         discount, commissions, discounts and other fees and charges and
         interest income to the extent attributable to the Non-Recourse Debt of
         Project Financing Subsidiaries.

                  "Issuing Banks" means Citibank, N.A. and Bank of America N.A.
         in their capacity as issuers of Letters of Credit.

                  "Investment" in any Person means any loan or advance to such
         Person, any purchase or other acquisition of any Equity Interests or
         Debt or the assets comprising a division or business unit or a
         substantial part or all of the business of such Person, any capital
         contribution to such Person or any other direct or indirect investment
         in such Person, including, without limitation, any acquisition by way
         of a merger or consolidation and any arrangement pursuant to which the
         investor incurs Debt of the types referred to in clause (viii) or (ix)
         of the definition of "Debt" in respect of such Person.

                                       10
<PAGE>

                  "LC Cash Collateral Accounts" has the meaning assigned to such
         term in Section 6.2.

                  "LC Participation Percentage" of any Bank means, at any time,
         the amount set opposite such Bank's name on Schedule IV or as reflected
         for such Bank in the relevant Transfer Agreement to which it is a
         party, as such amount may be terminated, reduced or increased pursuant
         to Section 9.6(a).

                  "Lending Office" means, with respect to any Bank, the office
         of such Bank specified as its "Lending Office" opposite its name on
         Schedule I hereto or in the relevant Transfer Agreement delivered
         pursuant to Section 8.6(a), or such other office of such Bank as such
         Bank may from time to time specify to the Borrower and the Agent.

                  "Letter of Credit" has the meaning assigned to such term in
         Section 2.10.

                  "Letter of Credit Commitment" of any Issuing Bank means, at
         any time, the amount set opposite such Bank's name on Schedule IV or as
         reflected for such Bank in the relevant Transfer Agreement to which it
         is a party, as such amount may be terminated, reduced or increased
         pursuant to Section 2.2, Section 2.8, Section 6.1 or Section 9.6(a).

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

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

                  "Letter of Credit Liability" means at any time and in respect
         of any Letter of Credit, the sum (without duplication) of (a) the
         maximum possible undrawn amount of such Letter of Credit at such time
         (after giving effect to any step up provision or other mechanism for
         increase, if any, and assuming that all conditions to drawing have been
         satisfied) plus (b) the aggregate unpaid amount of all drawings under
         such Letter of Credit that are unpaid at such time. For purposes of
         this Agreement, a Bank shall be deemed to hold a Letter of Credit
         Liability in an amount equal to its LC Participation Percentage in the
         related Letter of Credit under Section 2.10.

                  "Lien" means any mortgage, lien, pledge, charge, deed of
         trust, security interest, encumbrance or other analogous type of
         preferential arrangement to secure or provide for the payment of any
         Debt, trade payable, obligation or other liability of any Person,
         whether arising by contract, operation of law or otherwise (including
         the interest of a

                                       11
<PAGE>

         vendor or lessor under any conditional sale agreement, capital lease or
         other title retention agreement).

                  "LLC Guaranty" means a Guaranty executed by WGPC in
         substantially the form of Exhibit G, as amended, supplemented or
         modified from time to time.

                  "Major Subsidiary" means any Subsidiary of the Borrower with
         assets having a book value of $1,000,000,000 or more.

                  "Majority Banks" means at any time (i) Banks having more than
         50% of the Letter of Credit Commitments, or (ii) if the Letter of
         Credit Commitments have terminated and any Letter of Credit or any
         Letter of Credit Interest is outstanding, then Banks having more than
         50% of the sum of the aggregate unpaid principal amount of the
         outstanding Letter of Credit Interests (provided that for purposes of
         this definition and Sections 2.8, 6.1 and 7.1 neither the Borrower nor
         any Subsidiary or Related Party of the Borrower, if a Bank, shall be
         included in (i) the Banks owed or holding Letter of Credit Interests or
         (ii) determining the aggregate amount of the Letter of Credit
         Interests).

                  "MAPL" means Mid-America Pipeline Company, LLC, a Delaware
         limited liability company.

                  "MAPL Asset Disposition" means the sale, transfer or other
         distribution of the equity interests in or assets of MAPL.

                  "Material Subsidiary" means (i) each Major Subsidiary and each
         other Subsidiary of the Borrower (other than a Project Financing
         Subsidiary) that itself (on an unconsolidated, stand alone basis) owns
         in excess of 5% of the book value of the Consolidated assets of the
         Borrower and its Consolidated Subsidiaries, (ii) each of TGPL, TGT and
         NWP and (iii) each Subsidiary that owns any direct or indirect interest
         in TGPL, TGT and NWT.

                  "Midstream Assets" means all assets now owned or hereafter
         acquired by the Borrower or any of its Subsidiaries, which are either
         individually, or in conjunction with other Midstream Assets, necessary
         for the conduct of the Midstream Business by Borrower and its
         Subsidiaries, including the Refineries in Alaska and Tennessee, except
         that "Midstream Assets" shall not include (a) the assets being part of
         either of the MAPL Asset Disposition or Seminole Asset Disposition
         unless the MAPL Asset Disposition or Seminole Assets Disposition, as
         applicable, shall not have occurred on or prior to the date that is 60
         days from the date of this Agreement and (b) any assets of Williams GP
         LLC, Williams Energy Partners L.P. or their Subsidiaries.

                  "Midstream Asset MLP" means one or more master limited
         partnerships included in the Consolidated financial statements of the
         Borrower to which the Borrower has transferred or shall transfer
         certain assets relating to the Midstream Business as well as certain
         marine and inland terminals and related pipeline systems, including
         Williams Energy Partners L.P.

                                       12
<PAGE>

                  "Midstream Business" means the gathering, marketing,
         dehydrating, treating, processing, fractionating, refining, storing,
         selling and transporting of Hydrocarbons and Refined Hydrocarbons, and
         any business relating thereto.

                  "Midstream Guaranty" means a Guaranty executed by certain
         Guarantors in substantially the form of Exhibit H, as amended,
         supplemented or modified from time to time.

                  "Midstream Subsidiaries" means each Subsidiary of the
         Borrower, excluding Williams Mobile Bay Producer Services, L.L.C.,
         Williams GP LLC, Williams Energy Partners L.P. and each of their
         Subsidiaries, if any, engaged either in whole or in part of the
         Midstream Business that either (1) owns, leases or has possession of
         Midstream Assets that have an aggregate fair market value of $1,000,000
         or more, or (2) owns, leases or has possession of any Midstream Asset
         or right that is material to the ownership, leasing or operation of the
         Midstream Assets taken as a whole.

                  "Moody's" means Moody's Investors Service, Inc. or its
         successor.

                  "Mortgage" means each mortgage, deed of trust or comparable
         real property Lien document and Security Agreement executed by any
         Guarantor from time to time, in such form as necessary to grant an
         Acceptable Security Interest in favor of the Collateral Trustee for the
         benefit of itself and other parties, as more fully described in the
         Collateral Trust Agreement.

                  "Multiemployer Plan" means a "multiemployer plan" as defined
         in Section 4001(a)(3) of ERISA to which the Borrower or any ERISA
         Affiliate of the Borrower 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 as
         defined in Section 3(2) of ERISA, other than a Multiemployer Plan,
         subject to Title IV of ERISA to which the Borrower or any ERISA
         Affiliate of the Borrower, and one or more employers other than the
         Borrower or an ERISA Affiliate of the Borrower, is making or accruing
         an obligation to make contributions or, in the event that any such plan
         has been terminated, to which the Borrower or any ERISA Affiliate of
         the Borrower made or accrued an obligation to make contributions during
         any of the five plan years preceding the date of termination of such
         plan.

                  "Multiyear Williams Credit Agreement" means that certain
         Credit Agreement dated as of July 25, 2000 among the Borrower, NWP,
         TGPL and TGT, as Borrowers; the financial institutions party thereto,
         as "Banks" thereunder; JPMorgan Chase Bank (formerly known as The Chase
         Manhattan Bank) and Commerzbank AG, as Co-Syndication Agents; Credit
         Lyonnais New York Branch, as Documentation Agent; and Citibank, N.A. as
         Agent (as the same may from time to time be amended, supplemented,
         restated or otherwise modified).

                  "Nebraska Energy" means Nebraska Energy, L.L.C., a Kansas
         limited liability company.

                                       13
<PAGE>

                  "Net Cash Proceeds" means, with respect to any sale, transfer
         or other disposition of any asset or the sale or issuance of any equity
         interests (including, without limitation, any capital contribution) by
         any Person, the gross cash proceeds received (including any cash
         received by way of deferred payment pursuant to a promissory note,
         receivable or otherwise, but only as and when received) by or on behalf
         of such Person in connection with such transaction net of only (a)
         reasonable transaction costs, including customary and reasonable
         brokerage commissions, underwriting fees and discounts, legal fees,
         fees paid to accountants and financial advisors, finder's fees and
         other similar fees and commissions, (b) the amount of taxes payable in
         connection with or as a result of such transaction, (c) the amount of
         any Debt by the terms of the agreement or instrument governing such
         Debt (including, without limitation, the Barrett Loan Agreement), that
         is required to be repaid or cash collateralized in the case of letters
         of credit, upon such disposition, including any premium, make-whole or
         breakage amount related thereto, (d) payments of unassumed liabilities
         relating to the assets sold at the time of, or within 60 days after,
         the date of such sale, and provided that such gross proceeds shall not
         include any portion of such gross cash proceeds which the Borrower
         determines in good faith should be reserved for post-closing
         adjustments (including indemnification payments, tax expenses and
         purchase price adjustments, to the extent the Person delivers to the
         Agent a certificate signed by an Officer of such Person as to such
         determination), it being understood and agreed that on the day that all
         such post-closing adjustments have been determined (which shall not be
         later than 120 days following the date of the respective TWC Asset
         Disposition; provided, further that such 120-day period shall be
         extended to the extent any amount of such proceeds is subject to a good
         faith dispute or claim), the amount (if any) by which the reserved
         amount in respect of such sale or disposition exceeds the actual
         post-closing adjustments payable by such Person shall constitute Net
         Cash Proceeds on such date received by such Person from such sale,
         lease, transfer or other disposition.

                  "Net Worth" of any Person means, as of any date of
         determination, the excess of total assets of such Person plus all
         non-cash losses resulting from the write-down or disposition of the
         Trading Book over total liabilities of such Person, total assets and
         total liabilities each to be determined in accordance with generally
         accepted accounting principles; provided, however, that for purposes of
         calculating Net Worth, total liabilities shall not include any
         obligations of the Borrower in respect of the FELINE PACS.

                  "Non-Recourse Debt" means (i) any Debt incurred by any Project
         Financing Subsidiary to finance the acquisition (other than the
         acquisition from the Borrower or any Subsidiary of the Borrower that is
         not a Project Financing Subsidiary), improvement, installation, design,
         engineering, construction, development, completion, maintenance or
         operation of, or otherwise to pay costs and expenses relating to or
         providing financing for, a project listed on Schedule VI or any new
         project commenced or acquired after the date hereof, which Debt does
         not provide for recourse against the Borrower or any Subsidiary of the
         Borrower (other than a Project Financing Subsidiary and such recourse
         as exists under a Performance Guaranty) or any property or asset of the
         Borrower or any Subsidiary of the Borrower (other than the property or
         assets of a Project Financing Subsidiary) and (ii) any refinancing of
         such Debt that does not increase the outstanding principal amount
         thereof at the time of the refinancing or increase the property subject
         to

                                       14
<PAGE>

         any Lien securing such Debt or otherwise add additional security or
         support for such Debt.

                  "Notice of Letter of Credit" has the meaning specified in
         Section 2.10(a).

                  "NWP" means Northwest Pipeline Corporation, a Delaware
         corporation.

                  "Obligations" means all Letter of Credit Liabilities and all
         other Debt, advances, debts, liabilities, obligations, indemnities,
         covenants and duties owing by the Borrower or any Guarantor to any
         Bank, the Agent, any Issuing Bank, or to any other Person required to
         be indemnified under any Credit Document, of any kind or nature,
         present or future, whether or not evidenced by any note, guaranty or
         other instrument, arising under or in connection with this Agreement or
         any other Credit Document or any of the transactions evidenced by this
         Agreement or any other Credit Document, whether or not for the payment
         of money, whether arising by reason of an extension of credit, loan,
         guaranty, indemnification or in any other manner, whether direct or
         indirect (including those acquired by assignment), absolute or
         contingent, due or to become due, now existing or hereafter arising and
         however acquired. The term "Obligations" includes all interest,
         charges, expenses, fees, attorneys' fees and disbursements and any
         other sum chargeable to the Borrower under this Agreement or any other
         Credit Document.

                  "PBGC" means the Pension Benefit Guaranty Corporation.

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

                  "Permitted Liens" means Liens specifically described on
         Schedule III.

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

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

                  "Plan" means an employee pension benefit plan (other than a
         Multiemployer Plan) as defined in Section 3(2) of ERISA currently
         maintained by, or in the event such plan has terminated, to which
         contributions have been made or an obligation to make such
         contributions has accrued during any of the five plan years preceding
         the date of the termination of such plan by, the Borrower or any ERISA
         Affiliate of the Borrower for

                                       15
<PAGE>

         employees of the Borrower or any such ERISA Affiliate and covered by
         Title IV of ERISA or subject to the minimum funding standards under
         Section 412 of the Code.

                  "Pledge Agreement" means a Pledge Agreement executed by the
         Borrower and certain Guarantors in substantially the form of Exhibit I,
         as amended, supplemented or modified from time to time.

                  "Progeny Facilities" means the financing facilities
         specifically described on Schedule XI.

                  "Project Financing Subsidiaries" means any non-material
         Subsidiary of the Borrower whose principal purpose is to incur
         Non-Recourse Debt and/or construct, lease, own or operate the assets
         financed thereby, or to become a direct or indirect partner, member or
         other equity participant or owner in a Business Entity so created, and
         substantially all the assets of which Subsidiary or Business Entity are
         limited to those assets being financed (or to be financed), or the
         operation of which is being financed (or to be financed), in whole or
         in part by Non-Recourse Debt, or to Equity Interests in, or Debt or
         other obligations of, one or more other such Subsidiaries or Business
         Entities, or to Debt or other obligations of the Borrower or its
         Subsidiaries or other Persons. For purposes of this definition, a
         "non-material Subsidiary" shall mean any Consolidated Subsidiary of the
         Borrower that is not the Borrower and which, as of the date of the most
         recent Consolidated balance sheet of the Borrower delivered pursuant to
         Section 4.1(e) or 5.1, has total assets which account for less than
         five percent (5%) of the total Consolidated assets of the Borrower and
         its Consolidated Subsidiaries, as shown on such Consolidated balance
         sheet; provided, that the aggregate assets of the non-material
         Subsidiaries shall not comprise more than ten percent (10%) of the
         total Consolidated assets of the Borrower and its Consolidated
         Subsidiaries, as shown on such Consolidated balance sheet.

                  "Public Filings" means the Borrower's, NWP's, TGPL's and TGT's
         (i) annual report on Form 10-K/A for the year ended December 31, 2001
         and (ii) quarterly report on Form 10-Q for the quarter ended March 31,
         2002.

                  "Rating Category" means, as to the Borrower, the relevant
         category applicable to the Borrower from time to time as set forth on
         Schedule V, which is based on the ratings (or lack thereof) of the
         Borrower's senior unsecured long-term debt by S&P or Moody's. In the
         event there is a split between the ratings of the Borrower's senior
         unsecured long-term debt by S&P and Moody, "Rating Category" shall be
         determined based on the lowest rating of the Borrower's senior
         unsecured long-term debt by S&P or Moody's.

                  "Refined Hydrocarbons" means all products refined, separated,
         fractionated, settled, and dehydrated from Hydrocarbons and all
         products derived therefrom, including, without limitation, kerosene,
         liquefied petroleum gas, refined lubricating oils, diesel fuels, drip
         gasoline, natural gasoline, helium, sulfur and all other minerals.

                  "Refineries" means the equity interest in and assets owned by
         the Midstream Business of the Borrower which produces Refined
         Hydrocarbons and is owned

                                       16
<PAGE>

         collectively by the following Subsidiaries: Williams Express, Inc., a
         Delaware corporation, Williams Alaska Pipeline Company, LLC, a Delaware
         limited liability company, Williams Alaska Petroleum, Inc., an Alaska
         corporation, Williams Alaska Air Cargo Properties, LLC, an Alaska
         limited liability company, Williams Lynx Alaska CargoPort, LLC, an
         Alaska limited liability company, Williams Express, Inc., an Alaska
         corporation, Williams Refining & Marketing, LLC, a Delaware limited
         liability company, Williams Olefins, LLC, a Delaware limited liability
         company, Williams Olefins Feedstock Pipelines, LLC, a Delaware limited
         liability company, Williams Memphis Terminal, Inc., a Delaware
         corporation, Williams Generating Memphis, LLC, a Delaware limited
         liability company.

                  "Reg U Limited Assets" means assets that are subject to any
         arrangement (as contemplated by Regulation U) with any Bank, the Agent
         or any Issuing Bank (i) that restricts the right or ability of the
         Borrower or its Subsidiaries to sell, pledge or otherwise dispose of
         (within the meaning of Regulation U) such assets or (ii) that provides
         that the exercise of such right is or may be cause for accelerating the
         maturity of all or any portion of any amount payable hereunder or under
         such arrangement.

                  "Register" shall mean the books and accounts maintained by the
         Agent of the interests of each Bank under this Agreement and its Letter
         of Credit Interest, including records of transfers of any interests in
         this Agreement and the Letter of Credit Commitment of any Bank pursuant
         to Section 9.6.

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

                  "Related Party" of any Person means any corporation,
         partnership, joint venture or other entity of which more than 10% of
         the outstanding Equity Interests having ordinary voting power to elect
         a majority of the board of directors of such corporation, partnership,
         joint venture or other entity or others performing similar functions
         (irrespective of whether or not at the time Equity Interests of any
         other class or classes of such corporation, partnership, joint venture
         or other entity shall or might have voting power upon the occurrence of
         any contingency) is at the time directly or indirectly owned by such
         Person or which owns at the time directly or indirectly more than 10%
         of the Equity Interests having ordinary voting power to elect a
         majority of the board of directors of such Person or others performing
         similar functions (irrespective of whether or not at the time Equity
         Interests of any other class or classes of such corporation,
         partnership, joint venture or other entity shall or might have voting
         power upon the occurrence of any contingency); provided, however, that
         neither the Borrower nor any Subsidiary of the Borrower shall be
         considered to be a Related Party of the Borrower or any Subsidiary of
         the Borrower.

                  "RMT" means Williams Production RMT Company.

                  "RMT LLC" means Williams Production Holdings LLC.

                                       17
<PAGE>

                  "S&P" means Standard & Poor's Ratings Services, a division of
         The McGraw-Hill Companies, Inc., or its successor.

                  "Sale and Lease-Back Transaction" of any Person means any
         arrangement entered into by such Person or any Subsidiary of such
         Person, directly or indirectly, whereby such Person or any Subsidiary
         of such Person shall sell or transfer any property, whether now owned
         or hereafter acquired to any other person (a "Transferee"), and whereby
         such Person or any Subsidiary of such Person shall then or thereafter
         rent or lease as lessee such property or any part thereof or rent or
         lease as lessee from such Transferee or any other Person other property
         which such Person or any Subsidiary of such Person intends to use for
         substantially the same purpose or purposes as the property sold or
         transferred.

                  "Security Agreement" means a Security Agreement executed by
         the Borrower and certain of the Guarantors in substantially the form of
         Exhibit F, as amended, supplemented or modified from time to time.

                  "Security Documents" means each Mortgage and Additional
         Mortgage, the Security Agreement, the Pledge Agreement, the Collateral
         Trust Agreement and the Guaranties.

                  "Seminole" means Seminole Pipeline Company, a Delaware
         corporation.

                  "Solvent" and "Solvency" mean, with respect to any Person on a
         particular date, that on such date (a) the fair value of the property
         of such Person is greater than the total amount of liabilities,
         including, without limitation, contingent liabilities, of such Person,
         (b) the present fair salable value of the assets of such Person is not
         less than the amount that will be required to pay the probable
         liability of such Person on its debts as they become absolute and
         matured, (c) such Person does not intend to, and does not believe that
         it will, incur debts or liabilities beyond such person's ability to pay
         such debts and liabilities as they mature and (d) such Person is not
         engaged in business or a transaction, and is not about to engage in
         business or a transaction, for which such Person's property would
         constitute an unreasonably small capital. The amount of contingent
         liabilities at any time shall be computed as the amount that, in the
         light of all the facts and circumstances existing at such time,
         represents the amount that can reasonably be expected to become an
         actual or matured liability.

                  "SPC" has the meaning specified in Section 9.6(g).

                  "Stated Termination Date" means July 30, 2003, or such later
         date, if any as may be agreed to by the Borrower and the Banks pursuant
         to Section 2.9.

                  "Subordinated Debt" means any Debt of the Borrower which is
         effectively subordinated to the obligations of the Borrower hereunder.

                  "Subsidiary" of any Person means (i) any corporation,
         partnership, joint venture or other entity of which more than 50% of
         the outstanding Equity Interests having ordinary voting power to elect
         a majority of the board of directors of such corporation, partnership,
         joint venture or other entity or others performing similar functions

                                       18
<PAGE>

         (irrespective of whether or not at the time Equity Interests of any
         other class or classes of such corporation, partnership, joint venture
         or other entity shall or might have voting power upon the occurrence of
         any contingency) is at the time directly or indirectly owned by such
         Person, and (ii) any Person that is under the direct or indirect
         control of such Person, by voting rights, contract or otherwise, and in
         accordance with generally accepted accounting principles, is
         Consolidated with the Borrower in its Consolidated financial
         statements.

                  "Synthetic Lease" means any lease (including leases that may
         be terminated by the lessee at any time) of any property (whether real,
         personal or mixed) (i) that is not a capital lease in accordance with
         generally accepted accounting principles and (ii) in respect of which
         the lessee retains or obtains ownership of the property so leased for
         federal income tax purposes, other than any such lease under which such
         Person is the lessor.

                  "Tangible Net Worth" of any Person means, as of any date of
         determination, the excess of total assets of such Person over total
         liabilities of such Person, total assets and total liabilities each to
         be determined in accordance with generally accepted accounting
         principles, excluding, however, from the determination of total assets
         (i) patents, patent applications, trademarks, copyrights and trade
         names, (ii) goodwill, organizational, experimental, research and
         development expense and other like intangibles, (iii) treasury stock,
         (iv) monies set apart and held in a sinking or other analogous fund
         established for the purchase, redemption or other retirement of capital
         stock or Subordinated Debt, and (v) unamortized debt discount and
         expense.

                  "Termination Date" means the earlier of (i) the Stated
         Termination Date or (ii) the date of termination in whole of the Letter
         of Credit Commitments pursuant to Section 2.2, 2.8 or 6.1.

                  "Termination Event" means (i) a "reportable event", as such
         term is described in Section 4043 of ERISA (other than a "reportable
         event" not subject to the provision for 30-day notice to the PBGC), or
         (ii) the withdrawal of the Borrower or any ERISA Affiliate of the
         Borrower from a Multiple Employer Plan during a plan year in which it
         was a "substantial employer," as such term is defined in Section
         4001(a)(2) of ERISA, or the incurrence of liability by the Borrower or
         any ERISA Affiliate of the Borrower under Section 4064 of ERISA upon
         the termination of a Plan or Multiple Employer Plan, or (iii) the
         distribution of a notice of intent to terminate a Plan pursuant to
         Section 4041(a)(2) of ERISA or the treatment of a Plan amendment as a
         termination under Section 4041 of ERISA, or (iv) the institution of
         proceedings to terminate a Plan by the PBGC under Section 4042 of
         ERISA, or (v) any other event or condition which might constitute
         grounds under Section 4042 of ERISA for the termination of, or the
         appointment of a trustee to administer, any Plan.

                  "TGPL" means Transcontinental Gas Pipe Line Corporation, a
         Delaware corporation.

                                       19
<PAGE>

                  "TGPL Bond Offering" means the $325,000,000, 8.875% Senior
         Notes issued on July 3, 2002, by TGPL.

                  "TGT" means Texas Gas Transmission Corporation, a Delaware
         corporation.

                  "Trading Book" means all mark to market daily and forward
         traded transactions inclusive of structured portfolio transactions
         consisting primarily of tolling and full requirements transactions.

                  "Transfer Agreement" means an agreement executed pursuant to
         Section 8.6 by an assignor Bank and assignee Bank substantially in the
         form of Exhibit D, which agreement shall be executed by the Borrower
         and the Agent to evidence the consent of each if such consent is
         required pursuant to the definition herein of "Eligible Assignee" or
         the terms of Section 9.6.

                  "TWC" means The Williams Companies, Inc., a Delaware
         corporation.

                  "TWC Asset Disposition" means the sale by TWC or by any of its
         Subsidiaries of (a) Williams Gas Pipelines Central, Inc., (b) MAPL, (c)
         Seminole, (d) the Refineries, (e) Williams Soda Products Company and
         American Soda, L.L.P, (f) Williams TravelCenters, Inc., (g) Williams
         Bio-Energy, LLC, (h) Williams Ethanol Services, Inc. and (i) Nebraska
         Energy, L.L.C.

                  "TWC Preferred Stock" means the shares of preferred stock of
         TWC which may be mandatorily convertible into shares of common stock of
         TWC.

                  "WCG" means Williams Communications Group, Inc., a Delaware
         corporation.

                  "WCG Subsidiaries" means, collectively, WCG and any direct or
         indirect Subsidiary of WCG.

                  "WCG Synthetic Lease" means that certain Amended and Restated
         Lease between State Street Bank and Trust Company of Connecticut,
         National Association, as Lessor and Williams Communications, Inc., as
         Lessee, dated as of September 2, 1998, as amended, which has been
         terminated and was fully repaid on March 29, 2002.

                  "WCG Unwind Transaction" means a transaction in which (i) the
         Borrower's Sale Leaseback transaction with WCG and its Subsidiary,
         Williams Technology Center, LLC ("WTC") involving Williams Technology
         Center and two aircraft dated September 13, 2001 (the "WCG Sale
         Leaseback"), is terminated, (ii) in exchange for such termination, the
         Borrower receives a promissory note payable by the reorganized WCG, WTC
         and/or the other WCG Subsidiaries, as co-makers in an amount of
         $100,000,000 or less, and (iii) consideration from the Borrower and its
         Subsidiaries includes termination of the existing WCG Sale Leaseback,
         but does not include any cash payment by the Borrower or any of its
         Subsidiaries to WCG or WTC.

                                       20
<PAGE>

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

                  "WF Group" means Williams Field Services Group, Inc., a
         Delaware corporation.

                  "WGPC" means Williams Gas Pipeline Company, L.L.C., a Delaware
         limited liability company.

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

                  "WPRMT" means Williams Production RMT Company, a Delaware
         corporation.

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

         SECTION 1.3. Accounting Terms. All accounting terms not specifically
defined shall be construed in accordance with general accounting principles, and
each reference herein to "generally accepted accounting principles" shall mean
U.S. generally accepted accounting principles in effect, consistently applied.

         SECTION 1.4. Miscellaneous. The words "hereof," "herein" and
"hereunder" and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement, and Article, Section, Schedule and Exhibit references are to Articles
and Sections of and Schedules and Exhibits to this Agreement, unless otherwise
specified. The term "including" shall mean "including, without limitation,".

         SECTION 1.5. Ratings. A rating, whether public or private, by S&P or
Moody's shall be deemed to be in effect on the date of announcement or
publication by S&P or Moody's, as the case may be, of such rating or, in the
absence of such announcement or publication, on the effective date of such
rating and will remain in effect until the announcement or publication of, or in
the absence of such announcement or publication, the effective date of, any
change in, or withdrawal or termination of, such rating. In the event the
standards for any rating by Moody's or S&P are revised, or any such rating is
designated differently (such as by changing letter designations to different
letter designations or to numerical designations), the references herein to such
rating shall be deemed to refer to the revised or redesignated rating for which
the standards are closest to, but not lower than, the standards at the date
hereof for the rating which has been revised or redesignated, all as determined
by the Majority Banks in good faith. Long-term debt supported by a letter of
credit, guaranty, insurance or other similar credit enhancement mechanism shall
not be considered as senior unsecured long-term debt. If either Moody's or S&P
has at any time more than one rating applicable to senior unsecured long-term
debt of the Borrower, the lowest such rating shall be applicable for purposes
hereof. For example, if Moody's rates some senior unsecured long-term debt of
the Borrower Ba1 and other such debt of

                                       21
<PAGE>

the Borrower Ba2, the senior unsecured long-term debt of the Borrower shall be
deemed to be rated Ba2 by Moody's.

                                   ARTICLE II
                   AMOUNTS AND TERMS OF THE LETTERS OF CREDIT

                  SECTION 2.1. Fees.

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

                  (b) Letter of Credit Fees.

                  (i) Issuing Banks. The Borrower agrees to pay to the Agent for
         the account of each Issuing Bank a fronting fee on the maximum possible
         amount of each Letter of Credit (for the stated duration thereof, and
         giving effect to any step up provision or other mechanism for increase
         that (1) occurs automatically or (2) that is unilaterally exercisable
         by the Borrower) issued by such Issuing Banks in an amount equal to
         0.125% per annum.

                  (ii) Participating Banks. The Borrower agrees to pay to the
         Agent for the account of each Bank (in accordance with their respective
         LC Participation Percentage) a letter of credit fee (1) on the sum of
         the aggregate outstanding Letter of Credit Commitment at the time of
         determination less the aggregate outstanding stated amount of the
         Letters of Credit issued by the Issuing Banks at such time in an amount
         equal to the Applicable LC Commitment Margin in effect from time to
         time per annum, (2) on the issued and outstanding stated amount of the
         Letters of Credit at the time of determination issued by the Issuing
         Banks in an amount equal to the Applicable Issued LC Margin in effect
         from time to time per annum (for the stated duration thereof, and
         giving effect to any step up provision or other mechanism for increase
         that (x) occurs automatically or (y) that is unilaterally exercisable
         by the Borrower). All amounts payable pursuant to this clause (ii)
         shall be paid in arrears on the last day of each March, June, September
         and December and on the Termination Date.

         The letter of credit fees referred to in this Section 2.1(b) not paid
         on the date due shall accrue interest until such letter of credit fees
         are paid in full, due and payable on demand, at a per annum rate equal
         at all times to the sum of Base Rate plus 6.5% per annum.

                  SECTION 2.2. Reduction of the Commitments(a) . The Borrower
shall have the right, upon at least five Business Days notice to the Agent, to
terminate in whole or reduce ratably in part the unused portions of the
respective Letter of Credit Commitments; provided that each partial reduction
shall be in the aggregate amount of at least $10,000,000; and provided further
that the aggregate amount of the Letter of Credit Commitments shall not be
reduced to an amount which is less than the aggregate unpaid amount of all
drawings under all Letters of Credit that are unpaid at the time of such
reduction.

                  SECTION 2.3. Prepayments.

                                       22
<PAGE>

                  (a) The Borrower may, upon notice to the Agent before 10:00
A.M. (New York City time) on the date of prepayment stating the proposed date
(which shall be a Business Day) and aggregate principal amount of the
prepayment, and if such notice is given the Borrower shall, Cash Collateralize
the outstanding Letter of Credit Liabilities in whole or in part, together with
accrued interest and fees to the date of such Cash Collateralization on the Cash
Collateralized Letter of Credit Liabilities; provided, however, that each
partial Cash Collateralization pursuant to this Section 2.3(a) shall be in an
aggregate principal amount not less than the lesser of (1) $5,000,000 and (2)
the aggregate outstanding Letter of Credit Liabilities at the time of such Cash
Collateralization.

                  (b) All amounts received by the Agent from either the
Collateral Agent or the Collateral Trustee pursuant to any Security Document
shall be applied first, to reimburse the Collateral Agent for all costs and
expenses incurred by the Collateral Agent in connection with, and other amounts
expended by the Collateral Agent for which the Collateral Agent is entitled to
reimbursement under, any Security Document, and second, as set forth in Sections
6.2.

                  (c) In the event that on any Business Day the aggregate amount
of all Letter of Credit Liabilities exceeds the aggregate Letter of Credit
Commitments (the amount of such excess herein referred to as the "Excess
Exposure"), the Borrower will deliver to the Agent, at its address specified in
Section 9.2, on such next Business Day, for deposit into the LC Cash Collateral
Account, an amount at least equal to such Excess Exposure.

                  SECTION 2.4. Increased Costs.

                  (a) If any Bank or Issuing Bank determines that compliance
with any law or regulation or any guideline or request from any central bank or
other governmental or monetary 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 Bank or Issuing Bank, as the case may be, or any corporation
controlling such Bank or Issuing Bank, as the case may be, and that the amount
of such capital is increased by or based upon the existence of such Bank's or
such Issuing Bank's, as the case may be, commitment to issue Letters of Credit
or purchase participations in Letters of Credit and other commitments of this
type, then, upon demand by such Bank or Issuing Bank, as the case may be (with a
copy of such demand to the Agent), the Borrower shall immediately pay to the
Agent for the account of such Bank or Issuing Bank, as the case may be, from
time to time as specified by such Bank or Issuing Bank, as the case may be,
additional amounts sufficient to compensate such Bank or Issuing Bank, as the
case may be, or such corporation in the light of such circumstances, to the
extent that such Bank or Issuing Bank, as the case may be, reasonably determines
such increase in capital to be allocable to the existence of such Bank's or such
Issuing Bank's, as the case may be, commitment to issue Letters of Credit or
purchase participations in Letters of Credit hereunder. A certificate as to the
amount of such additional amounts, submitted to the Borrower and the Agent by
such Bank or Issuing Bank, as the case may be, shall be prima facie evidence of
the amount of such additional amounts. No Bank or Issuing Bank shall have any
right to recover any additional amounts under this Section 2.4(a) for any period
more than 90 days prior to the date such Bank or Issuing Bank, as the case may
be, notifies the Borrower of any such compliance.

                                       23
<PAGE>

                  (b) In the event that any Bank makes a demand for payment
under Section 2.6 or this Section 2.4, the Borrower may within ninety (90) days
of such demand, if no Default or Event of Default then exists, replace such Bank
with another commercial bank in accordance with all of the provisions of the
second and third sentences of Section 9.6(a), and clauses (b) and (d) of Section
9.6 (including execution of an appropriate Transfer Agreement); provided that
(i) all obligations of such Bank to purchase participations in Letters of Credit
shall be terminated and the Letter of Credit Interests held by such Bank and all
other obligations owed to such Bank hereunder shall be purchased in full without
recourse at par plus accrued interest at or prior to such replacement, (ii) such
replacement bank shall be an Eligible Assignee, (iii) such replacement bank
shall, from and after such replacement, be deemed for all purposes to be a
"Bank" hereunder with Letter of Credit Liabilities in the amount of the Letter
of Credit Liabilities of such Bank immediately prior to such replacement (plus,
if such replacement bank is already a Bank prior to such replacement the
respective Letter of Credit Liabilities of such Bank prior to such replacement),
as such amount may be changed from time to time pursuant hereto, and shall have
all of the rights, duties and obligations hereunder of the Bank being replaced,
including obligations under Section 2.10, and (iv) such other actions shall be
taken by the Borrower, such Bank and such replacement bank as may be appropriate
to effect the replacement of such Bank with such replacement bank on terms such
that such replacement bank has all of the rights, duties and obligations
hereunder as such Bank (including specification of the information contemplated
by Schedule I as to such replacement bank).

                  (c) Before making any demand under this Section 2.4, each Bank
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 Bank, be
otherwise disadvantageous to such Bank.

                  SECTION 2.5. Payments and Computations.

                  (a) The Borrower shall make each payment hereunder to be made
by it not later than 11:00 A.M. (New York City time) on the day when due in
Dollars to the Agent at its New York address referred to in Section 9.2, in same
day funds, without deduction, counterclaim or offset of any kind. The Agent will
promptly thereafter cause to be distributed like funds relating to the payment
of principal, interest or letter of credit fees to the Banks for the account of
their respective Lending Offices, and like funds relating to the payment of any
other amount payable to any Bank to such Bank for the account of its Lending
Office, in each case to be applied in accordance with the terms of this
Agreement. The Paying Agent will promptly pay to the Collateral Agent like funds
relating to the payment of any amount payable to the Collateral Agent. In no
event shall any Bank be entitled to share any fee paid to the Agent pursuant to
Section 2.1(a), any other fee paid to the Agent, as such or any fronting fee
paid to an Issuing Bank pursuant to Section 2.1(b).

                  (b) [Intentionally Omitted]

                  (c) (i) All computations of interest based on clause (a) or
clause (b) of the definition herein of Base Rate shall be made by the Agent on
the basis of a year of 365 or 366 days, as the case may be, and (ii) all
computations of interest based on the Federal Funds Rate or

                                       24
<PAGE>

clause (c) of the definition herein of Base Rate shall be made by the Agent, and
all computations of letter of credit fees shall be made by the Issuing Banks
that issued the relevant Letter of Credit, 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
letter of credit fees are payable. Each determination by the Agent of an
interest rate or fee hereunder shall be conclusive and binding for all purposes,
absent manifest error.

                  (d) Whenever any payment hereunder shall be stated to be due
on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or letter of credit fee, as
the case may be.

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

                  SECTION 2.6. Taxes.

                  (a) Any and all payments by the Borrower hereunder shall be
made, in accordance with Section 2.5, free and clear of and without deduction
for any and all present or future taxes, levies, imposts, deductions, charges or
withholdings with respect thereto, and all liabilities with respect thereto,
excluding in the case of each Bank and the Agent, (i) taxes imposed on its
income, and franchise taxes imposed on it, by the jurisdiction under the laws of
which such Bank or the Agent (as the case may be) is organized or any political
subdivision thereof and (ii) taxes imposed as a result of a present or former
connection between such Bank or the Agent, as the case may be, and the
jurisdiction imposing such tax or any political subdivision thereof and, in the
case of each Bank, taxes imposed on its income, and franchise taxes imposed on
it, by the jurisdiction of such Bank's Lending Office or any political
subdivision thereof, other than any such connection arising solely from the Bank
or Agent having executed or delivered, or performed its obligations or received
a payment under, or taken any other action related to this Agreement (all such
non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities being hereinafter referred to as "Taxes"). If the Borrower shall be
required by law to deduct any Taxes from or in respect of any sum payable
hereunder to any Bank or the Agent, (i) the sum payable shall be increased as
may be necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 2.6) such
Bank or the Agent, as the case may be, receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions and (iii) the Borrower shall pay the full amount deducted
to the relevant taxation authority or other authority in accordance with
applicable law.

                                       25
<PAGE>

                  (b) In addition, the Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes, charges
or similar levies which arise from any payment made by the Borrower hereunder or
from the execution, delivery or registration of, or otherwise with respect to,
this Agreement (hereinafter referred to as "Other Taxes").

                  (c) The Borrower will indemnify each Bank, each Issuing Bank
and the Agent for the full amount of Taxes or Other Taxes (including any Taxes
or Other Taxes imposed by any jurisdiction on amounts payable under this Section
2.6) owed and paid by such Bank, such Issuing Bank or the Agent, as the case may
be, and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto. This indemnification shall be made within 30
days from the date such Bank, such Issuing Bank or the Agent, as the case may
be, makes written demand therefor; provided that the Borrower shall have no
liability pursuant to this clause (c) of this Section 2.6 to indemnify a Bank,
an Issuing Bank or the Agent for Taxes or Other Taxes which were paid by such
Bank, such Issuing Bank or the Agent, as the case may be, more than ninety days
prior to such written demand for indemnification.

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

                  (e) Within 30 days after the date of the payment of Taxes by
or at the direction of the Borrower, the Borrower will furnish to the Agent, at
its address referred to in Section 9.2, the original or a certified copy of a
receipt evidencing payment thereof. Should any Bank, any Issuing Bank or the
Agent ever receive any refund, credit or deduction from any taxing authority to
which such Bank, such Issuing Bank or the Agent, as the case may be, would not
be entitled but for the payment by the Borrower of Taxes as required by this
Section 2.6 (it being understood that the decision as to whether or not to
claim, and if claimed, as to the amount of any such refund, credit or deduction
shall be made by such Bank, such Issuing Bank or the Agent, as the case may be,
in its reasonable judgment), such Bank, such Issuing Bank or the Agent, as the
case may be, thereupon shall repay to the Borrower an amount with respect to
such refund, credit or deduction equal to any net reduction in taxes actually
obtained by such Bank, such Issuing Bank or the Agent, as the case may be, and
determined by such Bank, such Issuing Bank or the Agent, as the case may be, to
be attributable to such refund, credit or deduction.

                  (f) Each Bank organized under the laws of a jurisdiction
outside the United States shall on or prior to the date of its execution and
delivery of this Agreement in the case of each Bank which is a party to this
Agreement on the date this Agreement becomes effective and on the date of the
Transfer Agreement pursuant to which it becomes a Bank is first effective in the
case of each other Bank, and from time to time thereafter as necessary or
appropriate (but only so long thereafter as such Bank remains lawfully able to
do so), provide each of the Agent and the Borrower with two original Internal
Revenue Service Forms W-8BEN or W-8ECI (or, in the case of a Bank that has
provided a certificate to the Agent that it is not (i) a "bank" as defined in

                                       26
<PAGE>

Section 881(c)(3)(A) of the Internal Revenue Code, (ii) a ten-percent
shareholder (within the meaning of Section 871(h)(3)(B) of the Internal Revenue
Code) of the Borrower or (iii) a controlled foreign corporation related to the
Borrower (within the meaning of Section 864(d)(4) of the Internal Revenue Code),
Internal Revenue Service Form W-8BEN), or any successor or other form prescribed
by the Internal Revenue Service, certifying that such Bank is exempt from or
entitled to a reduced rate of United States withholding tax on payments pursuant
to this Agreement or any other Credit Document or, in the case of a Bank that
has certified that it is not a "bank" as described above, certifying that such
Bank is a foreign corporation. If the forms provided by a Bank at the time such
Bank first becomes a party to this Agreement indicate a United States interest
withholding tax rate in excess of zero, withholding tax at such rate shall be
considered excluded from Taxes unless and until such Bank provides the
appropriate forms certifying that a lesser rate applies, whereupon withholding
tax at such lesser rate only shall be considered excluded from Taxes for periods
governed by such forms.

                  (g) For any period with respect to which a Bank has failed to
provide the Borrower with the appropriate form, certificate or other document
described in subsection (f) of this Section 2.6 (other than if such failure is
due to a change in the applicable law, or in the interpretation or application
thereof, occurring after the date on which a form, certificate or other document
originally was required to be provided) such Bank shall not be entitled to
indemnification under subsection (a) or (c) of this Section 2.6 with respect to
Taxes imposed by the United States by reason of such failure; provided, however,
that should a Bank become subject to Taxes because of its failure to deliver a
form, certificate or other document required hereunder, the Borrower shall take
such steps as such Bank shall reasonably request to assist such Bank in
recovering such Taxes.

                  (h) Any Bank claiming any additional amounts payable pursuant
to this Section 2.6 agrees to use reasonable efforts to change the jurisdiction
of its Lending Office if the making of such a change would avoid the need for,
or reduce the amount of, any such additional amounts that may thereafter accrue
and would not, in the reasonable judgment of such Bank, be otherwise materially
disadvantageous to such Bank.

                  (i) Without prejudice to the survival of any other agreement
of the Borrower hereunder, the agreements and obligations of the Borrower
contained in this Section 2.6 shall survive the payment in full of principal and
interest hereunder and the Termination Date.

                  (j) Notwithstanding any provision of this Agreement to the
contrary, this Section 2.6 shall be the sole provision governing indemnities and
claims for taxes under this Agreement.

                  SECTION 2.7. Sharing of Payments, Etc. If any Bank shall
obtain any payment (whether voluntary or involuntary, or through the exercise of
any right of set-off or otherwise) on account of its Letter of Credit Interest
(other than pursuant to Section 2.6 or 9.4(b)) in excess of its ratable share of
payments on account of all Letter of Credit Interests obtained by all the Banks,
such Bank shall forthwith purchase from the other Banks such participations in
the Letter of Credit Interests of such other Banks as shall be necessary to
cause such purchasing Bank to share the excess payment ratably with each of
them, provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Bank, such purchase from

                                       27
<PAGE>

each Bank shall be rescinded and such Bank shall repay to the purchasing Bank
the purchase price to the extent of such Bank's ratable share (according to the
proportion of (i) the amount of the participation purchased from such Bank as a
result of such excess payment to (ii) the total amount of such excess payment)
of such recovery together with an amount equal to such Bank's ratable share
(according to the proportion of (i) the amount of such Bank's required repayment
to (ii) the total amount so recovered from the purchasing Bank) of any interest
or other amount paid or payable by the purchasing Bank in respect of the total
amount so recovered. The Borrower agrees that any Bank so purchasing a
participation from another Bank pursuant to this Section 2.7 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 Bank were the
direct creditor of the Borrower in the amount of such participation.

                  SECTION 2.8. Optional Termination. Notwithstanding anything to
the contrary in this Agreement, if (i) any Person (other than a trustee or other
fiduciary holding securities under an employee benefit plan of the Borrower or
of any Subsidiary of the Borrower) or two or more Persons acting in concert
(other than any group of employees of the Borrower or of any of its
Subsidiaries) shall have acquired beneficial ownership (within the meaning of
Rule l3d-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934), directly or indirectly, of securities of the Borrower (or
other securities convertible into such securities) representing 35% or more of
the combined voting power of all securities of the Borrower entitled to vote in
the election of directors, other than securities having such power only by
reason of the happening of a contingency, or (ii) during any period of up to 24
consecutive months, commencing on, before or after the date of this Agreement,
individuals who at the beginning of such 24-month period were directors of the
Borrower or who were elected by individuals who at the beginning of such period
were such directors or by individuals elected in accordance with this clause
(ii) shall cease for any reason (other than as a result of death, incapacity or
normal retirement) to constitute a majority of the board of directors of the
Borrower, or (iii) any Person (other than the Borrower or a Wholly-Owned
Subsidiary of the Borrower) or two or more Persons acting in concert shall have
acquired by contract or otherwise, or shall have entered into a merger or
purchase agreement with the Borrower pursuant to which such Person or Persons
shall have acquired the power to exercise, directly or indirectly, a controlling
influence over the management or policies of the Borrower; then the Agent shall
at the request, or may with the consent, of the Majority Banks, by notice to the
Borrower, declare all of the Letter of Credit Commitments of each Bank and the
obligation of each Issuing Bank to issue Letters of Credit to be terminated,
whereupon all of the Letter of Credit Commitments and each such obligation of
the Banks (including the obligation to issue or participate in any new Letters
of Credit issued after such termination, but specifically excluding the
obligation of each Bank to participate in Letters of Credit outstanding at the
time of such termination) shall forthwith terminate, and the Borrower shall not
have any further right to obtain Letters of Credit hereunder.

                  SECTION 2.9. Extension of Termination Date. By notice given to
the Agent and the Banks, at least thirty days but not more than forty-five days
before the Stated Termination Date then in effect, the Borrower may request the
Banks to extend the Stated Termination Date for an additional period to a date
which is 364 days after the then current Stated Termination Date. Within thirty
days after receipt of such request, each Bank that agrees, in its sole and
absolute discretion, to so extend the Stated Termination Date shall notify the
Borrower and the

                                       28
<PAGE>

Agent in writing that it so agrees, and if all Banks so agree the Stated
Termination Date shall be so extended.

                  SECTION 2.10. Letter of Credit Facility. Subject to the terms
and conditions of this Agreement, the Letter of Credit Commitments may be
utilized, upon the request of the Borrower, by the issuance by any Issuing Bank
(such issuance, and any funding of a draw thereunder, to be made by the Issuing
Banks in reliance of the agreements of the other Banks in this Section) of
standby letters of credit (collectively, the "Letters of Credit", and each a
"Letter of Credit") for the account of the Borrower; provided that in no event
shall (i) the aggregate amount of all Letter of Credit Liabilities exceed the
aggregate Letter of Credit Commitments, (ii) the aggregate amount of all Letters
of Credit issued by any Issuing Bank exceed the aggregate Letter of Credit
Commitments of such Issuing Bank, (iii) the expiration date of any Letter of
Credit extend beyond the date that is ten Business Days prior to the Stated
Termination Date then in effect, or (iv) any Letter of Credit be payable in any
currency other than Dollars. The following additional provisions shall apply to
Letters of Credit:

                  (a) Notice of Issuance. The Borrower shall give the Agent and
         the Issuing Bank from which it is requesting a Letter of Credit at
         least three Business Days' (or such shorter period as agreed to by the
         Agent and such Issuing Bank) prior notice, in the form of Exhibit E (a
         "Notice of Letter of Credit"), specifying the Business Day such Letter
         of Credit is to be issued and the account party or parties therefor and
         describing in reasonable detail the proposed terms of such Letter of
         Credit (including the beneficiary thereof) and the nature of the
         transactions or obligations proposed to be supported thereby.

                  (b) Participations in Letters of Credit. On each day during
         the period commencing with the issuance by any Issuing Bank of any
         Letter of Credit and until such Letter of Credit shall have expired or
         been terminated, the Letter of Credit Commitment of each Issuing Bank
         shall be deemed to be utilized for all purposes of this Agreement in an
         amount equal to the stated amount of such Letter of Credit. Each Bank
         agrees that, upon the issuance of any Letter of Credit hereunder by any
         Issuing Bank, it shall automatically acquire a participation in such
         Issuing Bank's liability under such Letter of Credit in an amount equal
         to such Bank's LC Participation Percentage of such liability, and each
         Bank thereby shall absolutely, unconditionally and irrevocably assume,
         as primary obligor and not as surety, and shall be unconditionally
         obligated to such Issuing Bank to the extent provided in this Section
         2.10.

                  (c) Reimbursement Obligations; Notice of Drawings. Upon
         receipt from the beneficiary of any Letter of Credit of any demand for
         payment under such Letter of Credit, the Issuing Banks that issued such
         Letter of Credit shall promptly notify the Borrower (through the Agent)
         of the amount to be paid by such Issuing Bank as a result of such
         demand and the date on which payment is to be made by such Issuing Bank
         to such beneficiary in respect of such demand, which shall be at least
         one Business Day after the date on which the Agent shall deliver such
         notice to the Borrower pursuant to this sentence. Notwithstanding the
         identity of the account party of any Letter of Credit, the Borrower
         hereby unconditionally agrees to pay and reimburse the Agent for the
         account of the Issuing Bank that issued a Letter of Credit for the
         amount of each demand

                                       29
<PAGE>

         for payment under such Letter of Credit that is in substantial
         compliance with the provisions of such Letter of Credit at or prior to
         the date on which payment is to be made by such Issuing Bank to the
         beneficiary thereunder, without presentment, demand, protest or other
         formalities of any kind, together with interest thereon at a rate per
         annum equal to the Base Rate plus 6.5% per annum for the period from
         the date of such demand until the date of such reimbursement. The
         Borrower's obligations to reimburse each Issuing Bank as provided
         herein shall be absolute, unconditional and irrevocable under all
         circumstances whatsoever, including the following circumstances: (i)
         any lack of validity of this Agreement, the other Credit Documents or
         the other documents to be delivered under this Agreement; (ii) the
         existence of any claim, set-off, defense or other right that the
         Borrower may have at any time against the Agent, any Bank, any Issuing
         Bank or any other Person, whether in connection with the transactions
         contemplated by this Agreement or any unrelated transaction; (iii) any
         action or inaction taken or suffered by any Issuing Bank under a Letter
         of Credit if taken in good faith and in conformity with applicable law;
         (iv) the payment by any Issuing Bank under a Letter of Credit against
         presentation of a demand, statement or other document which in the sole
         discretion of such Issuing Bank substantially complies with the terms
         of such Letter of Credit, including any demand, statement or other
         document which is forged, fraudulent, invalid or inaccurate in any
         respect; (v) any exchange, release or non-perfection of any Collateral
         for, or any release or amendment or waiver of or consent to departure
         from any guarantee of, all or any of the Obligations of the Borrower in
         respect of any Letter of Credit and (vi) any determination of
         invalidity or unenforceability with respect to any Letter of Credit
         after payment by an Issuing Bank thereunder.

                  (d) Payments by Banks to Issuing Banks. To the extent that the
         Borrower fails to make any payment to an Issuing Bank that the Borrower
         is required to make pursuant to Section 2.10(c), each Bank (other than
         such Issuing Bank) shall pay to the Agent, for the account of such
         Issuing Bank in Dollars and in immediately available funds, the amount
         of such Bank's LC Participation Percentage of any payment under a
         Letter of Credit upon notice by such Issuing Bank (through the Agent)
         to such Bank requesting such payment and specifying such amount. Each
         such Bank's obligation to make such payment to the Agent for the
         account of such Issuing Bank under this Section 2.10(d), and such
         Issuing Bank's right to receive the same, shall be absolute and
         unconditional and shall not be affected by any circumstance whatsoever
         other than the gross negligence or willful misconduct of such Issuing
         Bank in making payment under such Letter of Credit, including the
         failure of any other Bank to make its payment under this Section
         2.10(d), the financial condition of the Borrower (or any account party
         in respect of such Letter of Credit), the existence of any Event of
         Default or the termination of the Letter of Credit Commitments. If any
         Bank shall default in its obligation to make any such payment to the
         Agent for the account of an Issuing Bank, for so long as such default
         shall continue the Agent may at the request of such Issuing Bank
         withhold from any payments received by the Agent under this Agreement
         for the account of such Bank the amount so in default and, to the
         extent so withheld, pay the same to such Issuing Bank for application
         to such defaulted obligation.

                  (e) Participations in Reimbursement Obligations. Upon the
         making of each payment by a Bank to an Issuing Bank pursuant to Section
         2.10(d) in respect of any

                                       30
<PAGE>

         Letter of Credit, such Bank shall, automatically and without any
         further action on the part of the Agent, any Issuing Bank or such Bank,
         acquire (i) a funded participation in an amount equal to such payment
         in the Reimbursement Obligation owing to such Issuing Bank by the
         Borrower hereunder and under the Letter of Credit Documents relating to
         such Letter of Credit and (ii) a participation in a percentage equal to
         such Bank's LC Participation Percentage in any interest or other
         amounts payable by the Borrower hereunder and under such Letter of
         Credit Documents in respect of such Reimbursement Obligation (other
         than the fronting fee contemplated by Section 2.1(b)(i)). Upon receipt
         by any Issuing Bank from or for the account of the Borrower of any
         payment in respect of any Reimbursement Obligation or any such interest
         or other amount (including by way of setoff or application of proceeds
         of any collateral security), such Issuing Bank shall promptly pay to
         the Agent, for the account of each Bank entitled thereto, such Bank's
         participation percentage of such payment, each such payment by such
         Issuing Bank to be made in the same currency and funds in which
         received by any Issuing Bank. In the event any payment received by such
         Issuing Bank and so paid to the Banks hereunder is rescinded or must
         otherwise be returned by any Issuing Bank, each Bank shall, upon the
         request of such Issuing Bank (through the Agent), repay to such Issuing
         Bank (through the Agent) the portion of such payment paid to such Bank.

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

                  (g) Conditions Precedent to Issuance, Extension and
         Modification. The issuance by any Issuing Bank of a Letter of Credit,
         or any extension of any outstanding Letter of Credit, shall be subject
         to satisfaction of each of the conditions precedent set forth in
         Article III, and shall further be subject to the conditions precedent
         that (i) such Letter of Credit shall be in such form and contain such
         terms as shall be reasonably satisfactory to such Issuing Bank
         consistent with its then current practices and procedures of general
         applicability with respect to letters of credit of the same type and
         (ii) the Borrower shall have executed and delivered such agreements and
         other instruments relating to such Letter of Credit as such Issuing
         Bank shall have reasonably requested consistent with its then current
         practices and procedures of general applicability with respect to
         letters of credit of the same type; provided that in the event of any
         conflict between any such application, agreement or other instrument
         and the provisions of this Agreement, the provisions of this Agreement
         shall control. The issuance by any Issuing Bank of any modification or
         supplement to any Letter of Credit hereunder shall be subject to the
         same conditions applicable under this Section 2.10 to the issuance of
         new Letters of Credit, and no such modification or supplement shall be
         issued hereunder unless the Letter of Credit affected thereby would
         have complied with such conditions had it originally been issued
         hereunder in such modified or supplemented form.

                                       31
<PAGE>

                  (h) Interest Payable to Issuing Banks by Banks. To the extent
         that any Bank shall fail to pay any amount required to be paid pursuant
         to Section 2.10(d) or (e) on the due date therefor, such Bank shall pay
         interest to the Issuing Bank owed such amount (through the Agent) on
         such amount from and including such due date to but excluding the date
         such payment is made at a rate per annum equal to the Federal Funds
         Rate.

                  (i) Indemnification of the Banks, Issuing Banks and Agent. the
         Borrower hereby indemnifies and holds harmless each Bank, each Issuing
         Bank and the Agent from and against any and all claims, damages,
         losses, liabilities, costs and expenses that such Bank, such Issuing
         Bank or the Agent may incur (or that may be claimed against such Bank,
         such Issuing Bank or the Agent by any Person whatsoever) by reason of
         or in connection with the execution and delivery or transfer of or
         payment or refusal to pay by each Issuing Bank under any Letter of
         Credit (EXPRESSLY INCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR
         EXPENSE ATTRIBUTABLE TO THE ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE
         OF SUCH BANK, SUCH ISSUING BANK OR THE AGENT, AS THE CASE MAY BE, BUT
         EXCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE
         ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH
         BANK, SUCH ISSUING BANK AND THE AGENT). IT IS THE INTENT OF THE PARTIES
         HERETO THAT EACH BANK, EACH ISSUING BANK OR THE AGENT, AS THE CASE MAY
         BE, SHALL, TO THE EXTENT PROVIDED IN THIS SECTION 2.10(i), BE
         INDEMNIFIED FOR ITS OWN ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE;
         provided that the Borrower shall not be required to indemnify --------
         any Bank, any Issuing Bank or the Agent for any claims, damages,
         losses, liabilities, costs or expenses to the extent, but only to the
         extent, caused by (x) in the case of each Issuing Bank, the willful
         misconduct or gross negligence of such Issuing Bank in determining
         whether a request presented under any Letter of Credit complied with
         the terms of such Letter of Credit or (y) in the case of any Bank, such
         Bank's failure to pay its Letter of Credit Liabilities pursuant to
         Sections 2.10(d), (e) and (h).

                                  ARTICLE III
                                   CONDITIONS

                  SECTION 3.1. Conditions Precedent to Initial Issuance. The
obligation of each Issuing Bank to issue its initial Letter of Credit is subject
to the condition precedent that the Agent shall have received on or before the
date hereof, each dated on or before such date, in form and substance
satisfactory to the Agent (and the Banks, in the case of the Security Documents)
and in sufficient copies (if applicable) for each Bank:

                  (a) Certified copies of the resolutions of the Board of
         Directors, or the Executive Committee thereof, of the Borrower
         authorizing the execution of this Agreement, the other Credit Documents
         to which the Borrower is a party, and each Notice of Letter of Credit,
         and all other documents, in each case evidencing any necessary company
         action and governmental approvals, if any, with respect to each such
         Credit Document.

                                       32
<PAGE>

                  (b) A certificate of the Secretary or an Assistant Secretary
         of the Borrower certifying (i) that attached thereto are true and
         correct copies of the Certificate of Incorporation and Bylaws of the
         Borrower, together with any amendments thereto, and (ii) the names and
         true signatures of the officers of the Borrower authorized to sign each
         Credit Document.

                  (c) Opinions of each of (i) William G. von Glahn, General
         Counsel of the Borrower, substantially in the form of Exhibit A hereto
         and (ii) Skadden, Arps, Slate, Meagher & Flom LLP, New York counsel to
         the Borrower and Guarantors, substantially in the form of Exhibits B-1
         and B-2 hereto, and, in each case, as to such other matters as any Bank
         through the Agent may reasonably request.

                  (d) A duly executed and fully effective amendment to the
         Multiyear Williams Credit Agreement and each of the Progeny Facility
         documents, other than those automatically amended by virtue of the
         amendment to the Multiyear Williams Credit Agreement, each dated the
         date of this Agreement.

                  (e) A certificate of an officer of the Borrower stating the
         respective ratings by each of S&P and Moody's of the senior unsecured
         long-term debt of the Borrower as in effect on the date of this
         Agreement.

                  (f) The Security Documents (other than the Mortgages and
         Additional Mortgages) and all documents required for perfection of the
         Liens granted pursuant to such Security Documents.

                  (g) Evidence that TWC shall have received gross cash proceeds
         in the aggregate amount of no less than $2,100,000,000; provided that
         some or all of those proceeds shall have been received from each of the
         MAPL Asset Disposition, Seminole Asset Disposition and Barrett Loan.

                  (h) The Borrower shall have paid all accrued fees of the Agent
         and all accrued expenses of the Agent (including the accrued fees and
         expenses of counsel to the Agent and local counsel to the Agent).

For purposes of determining compliance with the conditions specified in this
Section 3.1, each Bank shall be deemed to have consented to, approved and
accepted and to be satisfied with each document or other matter required under
this Section 3.1, unless both (i) an officer of the Agent responsible for the
transactions contemplated by this Agreement shall have received written notice
from such Bank prior to the issuance of the initial Letter of Credit specifying
its objection thereto and (ii) such Bank shall not have accepted any portion of
the fees set forth in Section 2.1(b).

                  SECTION 3.2. Conditions Precedent to an Issuance of a Letter
of Credit. The obligation of each Issuing Bank to issue a Letter of Credit
(including the initial Letter of Credit) shall be subject to the further
conditions precedent that on the date of the requested issuance of such Letter
of Credit, the following statements shall be true (and each of the giving of the
applicable Notice of Letter of Credit and the issuance of such Letter of Credit
shall constitute

                                       33
<PAGE>

a representation and warranty by the Borrower that on the date such Letter of
Credit is issued such statements are true):

                  (a) The representations and warranties contained in Section
         4.1 are correct on and as of the date of such Letter of Credit, before
         and after issuance of such Letter of Credit, as though made on and as
         of such date (unless such representation and warranty speaks solely as
         of a particular date or a particular period, in which case, as of such
         date or for such period),

                  (b) No event has occurred and is continuing, or would result
         from the issuance of such Letter of Credit, which constitutes a Default
         or Event of Default, and

                  (c) After giving effect to such Letter of Credit and Letters
         of Credit which have been requested by the Borrower on or prior to such
         date but which have not been made or issued prior to such date, the sum
         of the aggregate amount of all Letter of Credit Liabilities will not
         exceed the aggregate of the Letter of Credit Commitments.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

                  SECTION 4.1. Representations and Warranties of the Borrower.
The Borrower represents and warrants as follows:

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

                  (b) The execution, delivery and performance by the Borrower of
         the Credit Documents to which it is a party delivered hereunder and the
         consummation of the transactions contemplated thereby are within the
         Borrower's corporate or limited liability

                                       34
<PAGE>

         company powers, have been duly authorized by all necessary corporate or
         limited liability company action, do not contravene (i) the Borrower's
         charter, by-laws or formation agreement or (ii) law or any restriction
         under any material agreement binding on or affecting the Borrower, any
         Guarantor or any Midstream Subsidiary and will not result in or require
         the creation or imposition of any Lien prohibited by this Agreement.

                  (c) No authorization or approval or other action by, and no
         notice to or filing with, any governmental authority or regulatory body
         is required for the due execution, delivery and performance by the
         Borrower, any Guarantor or any Midstream Subsidiary of any Credit
         Document to which any of them is a party, or the consummation of the
         transactions contemplated thereby.

                  (d) Each Credit Document to which the Borrower is a party has
         been duly executed and delivered by the Borrower and is the legal,
         valid and binding obligation of the Borrower enforceable against the
         Borrower in accordance with its terms, except as such enforceability
         may be limited by any applicable bankruptcy, insolvency,
         reorganization, moratorium or similar law affecting creditors' rights
         generally and by general principles of equity.

                  (e) (i) The Consolidated balance sheet of the Borrower and its
         Consolidated Subsidiaries as at December 31, 2001, and the related
         Consolidated statements of income and cash flows of the Borrower and
         its Consolidated Subsidiaries for the fiscal year then ended, copies of
         which have been furnished to each Bank, and the Consolidated balance
         sheet of the Borrower and its Consolidated Subsidiaries as at March 31,
         2002, and the related Consolidated statements of income and cash flows
         of the Borrower and its Consolidated Subsidiaries for the three months
         then ended, duly certified by an authorized financial officer of the
         Borrower, copies of which have been furnished to each Bank, fairly
         present (in the case of such balance sheets as at March 31, 2002, and
         such statements of income and cash flows for the three months then
         ended, subject to year-end audit adjustments and the lack of footnotes)
         the Consolidated financial condition of the Borrower and its
         Consolidated Subsidiaries as at such dates and the Consolidated results
         of operations of the Borrower and its Consolidated Subsidiaries for the
         year and three month period, respectively, ended on such dates, all in
         accordance with generally accepted accounting principles consistently
         applied. Except as has been disclosed to each Bank, from December 31,
         2001 to the date of this Agreement, there has been no material adverse
         change in the Consolidated financial condition or Consolidated results
         of operations of the Borrower and its Consolidated Subsidiaries.

                  (ii) The Consolidated balance sheet of WGPC and its
         Consolidated Subsidiaries as at December 31, 2001, and the related
         Consolidated statements of income and cash flows of WGPC and its
         Consolidated Subsidiaries for the fiscal year then ended, copies of
         which have been furnished to each Bank, and the Consolidated balance
         sheet of WGPC and its Consolidated Subsidiaries as at March 31, 2002,
         and the related Consolidated statements of income and cash flows of
         WGPC and its Consolidated Subsidiaries for the three months then ended,
         duly certified by an authorized financial officer of WGPC, copies of
         which have been furnished to each Bank, fairly present (in the case of
         such balance sheets as at March 31, 2002, and such statements of income
         and

                                       35
<PAGE>

         cash flows for the three months then ended, subject to year-end audit
         adjustments and the lack of footnotes) the Consolidated financial
         condition of WGPC and its Consolidated Subsidiaries, respectively, as
         at such dates and the Consolidated results of operations of WGPC and
         its Consolidated Subsidiaries, respectively, for the year and three
         month period, respectively, ended on such dates, all in accordance with
         generally accepted accounting principles consistently applied. From
         December 31, 2001 to the date of this Agreement, there has been no
         material adverse change in the Consolidated financial condition or
         Consolidated results of operations of WGPC and its Consolidated
         Subsidiaries.

                  (iii) The unaudited Consolidated balance sheet of WF Group and
         its Consolidated Subsidiaries as at December 31, 2001, and the related
         unaudited Consolidated statements of income and cash flows of WF Group
         and its Consolidated Subsidiaries for the fiscal year then ended,
         copies of which have been furnished to each Bank, and the unaudited
         Consolidated balance sheet of WF Group and its Consolidated
         Subsidiaries as at March 31, 2002, and the related unaudited
         Consolidated statements of income and cash flows of WF Group and its
         Consolidated Subsidiaries for the three months then ended, duly
         certified by an authorized financial officer of WF Group, copies of
         which have been furnished to each Bank, fairly present (in the case of
         such balance sheets as at March 31, 2002, and such statements of income
         and cash flows for the three months then ended, subject to the lack of
         footnotes) the Consolidated financial condition of WF Group and its
         Consolidated Subsidiaries as at such dates and the Consolidated results
         of operations of WF Group and its Consolidated Subsidiaries for the
         year and three month period, respectively, ended on such dates, all in
         accordance with generally accepted accounting principles consistently
         applied.

                  (f) Except as set forth in the Public Filings or as otherwise
         disclosed in writing by the Borrower to the Banks and the Agent after
         the date hereof and approved by the Majority Banks, there is no pending
         or, to the knowledge of the Borrower, threatened action or proceeding
         affecting the Borrower, any Guarantor or any Material Subsidiary of the
         Borrower or against any of its or their respective properties or
         revenues before any court, governmental agency or arbitrator, which
         could reasonably be expected to materially and adversely affect the
         financial condition or operations of the Borrower and its Subsidiaries
         taken as a whole or which purports to affect the legality, validity,
         binding effect or enforceability of this Agreement or any other Credit
         Document.

                  (g) Letter of Credit has been or will be used for any purpose
         or in any manner not permitted by Section 5.2(l).

                  (h) The Borrower is not 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 Federal Reserve Board), and
         no proceeds of any issuance of a Letter of Credit will be used to
         purchase or carry any such margin stock (other than purchases of common
         stock expressly permitted by Section 5.2(l)) or to extend credit to
         others for the purpose of purchasing or carrying any such margin stock.
         Following application of the proceeds of each issuance of a Letter of
         Credit, no more than 25% of the value of the Reg U Limited Assets of
         the Borrower will consist of margin stock (as defined in

                                       36
<PAGE>

         Regulation U), and no more than 25% of the value of the Reg U Limited
         Assets of the Borrower and its Subsidiaries on a consolidated basis
         will consist of margin stock (as defined in Regulation U).

                  (i) The Borrower is not an "investment company" or a company
         "controlled" by an "investment company" within the meaning of the
         Investment Company Act of 1940, as amended.

                  (j) No Termination Event has occurred or is reasonably
         expected to occur with respect to any Plan that could reasonably be
         expected to have a material adverse effect on any of the Borrower or
         any Material Subsidiary of the Borrower. The Borrower has not nor has
         any ERISA Affiliate of the Borrower received any notification that any
         Multiemployer Plan is in reorganization or has been terminated, within
         the meaning of Title IV of ERISA, and the Borrower is not aware of any
         reason to expect that any Multiemployer Plan is to be in reorganization
         or to be terminated within the meaning of Title IV of ERISA that would
         have any material adverse effect on the Borrower, any Material
         Subsidiary of the Borrower or any ERISA Affiliate of the Borrower.

                  (k) As of the date of this Agreement, the United States
         federal income tax returns of the Borrower and its Material
         Subsidiaries have been examined through the fiscal year ended December
         31, 1995. The Borrower and its Subsidiaries have filed all United
         States Federal income tax returns and all other material domestic tax
         returns which are required to be filed by them and have paid, or
         provided for the payment before the same become delinquent of, all
         taxes due pursuant to such returns or pursuant to any assessment
         received by the Borrower or any such Subsidiary, other than those taxes
         contested in good faith by appropriate proceedings. The charges,
         accruals and reserves on the books of the Borrower and the Material
         Subsidiaries of the Borrower in respect of taxes are adequate.

                  (l) The Borrower is not a "holding company," or a "subsidiary
         company" of a "holding company," or an "affiliate" of a "holding
         company" or of a "subsidiary company" of a "holding company," or a
         "public utility" within the meaning of the Public Utility Holding
         Company Act of 1935, as amended.

                  (m) Except as set forth in the Public Filings or as otherwise
         disclosed in writing by the Borrower to the Banks and the Agent after
         the date hereof and approved by the Majority Banks, the Borrower and
         its respective Material Subsidiaries are in compliance in all material
         respects with all Environmental Protection Statutes to the extent
         material to the operations or the consolidated financial condition of
         the Borrower and its Consolidated Subsidiaries taken as a whole. Except
         as set forth in the Public Filings or as otherwise disclosed in writing
         by the Borrower to the Banks and the Agent after the date hereof and
         approved by the Majority Banks, the aggregate contingent and
         non-contingent liabilities of the Borrower and its Consolidated
         Subsidiaries (other than those reserved for in accordance with
         generally accepted accounting principles and set forth in the financial
         statements regarding the Borrower referred to in Section 4.1(e) and
         delivered to each Bank and excluding liabilities to the extent covered
         by insurance if the insurer has confirmed that such insurance covers
         such liabilities or which the Borrower reasonably

                                       37
<PAGE>

         expects to recover from ratepayers) which are reasonably expected to
         arise in connection with (i) the requirements of Environmental
         Protection Statutes or (ii) any obligation or liability to any Person
         in connection with any Environmental matters (including any release or
         threatened release (as such terms are defined in the Comprehensive
         Environmental Response, Compensation and Liability Act of 1980) of any
         Hazardous Waste, Hazardous Substance, other waste, petroleum or
         petroleum products into the Environment) could not reasonably be
         expected to have a material adverse effect on the business, assets,
         conditions or operations of the Borrower and its Subsidiaries, taken as
         a whole. The Borrower and its respective Material Subsidiaries holds
         all Environmental Permits (each of which is in full force and effect)
         required for any of its current or planned operations or for any
         property owned, leased, or otherwise operated by it; and is, and within
         the period of all applicable statutes of limitation has been, in
         compliance with all of its Environmental Permits.

                  (n) Other than the Permitted Liens, the Borrower and its
         Subsidiaries have good, valid and indefeasible title to, or a valid
         leasehold interest in, its respective property and to all property
         reflected by its respective balance sheet referenced in clause (e)
         above as being owned by the Borrower. Each of the Borrower, the
         Guarantors and each of the Midstream Subsidiaries have sufficient title
         to all Midstream Assets they collectively own and operate as is
         necessary for the conduct of the Midstream Business after the date
         hereof in accordance with the ownership and operation of the Midstream
         Business in the twelve months prior to the date hereof. There exists,
         or following completion of the post-closing items more fully described
         in Schedule XII, there will exist an Acceptable Security Interest in
         all Collateral other than the Excluded Collateral.

                  (o) After giving effect to this Agreement and the concurrent
         amendments to various financing arrangements and agreements of the
         Borrower and its Subsidiaries, the Borrower and each Guarantor,
         individually and together with its Subsidiaries, is Solvent.

                  (p) The Persons listed on Schedule X are all of the Midstream
         Subsidiaries and own, lease or hold all Midstream Assets necessary
         and/or appropriate for the operation and carrying on of the Midstream
         Business associated with the Midstream Assets as conducted during the
         12 months preceding the date hereof.

                  (q) Neither the Borrower nor any Guarantor or any Midstream
         Subsidiary is in default under or with respect to any of its margin
         requirements and capital assurance requirements in any respect which
         could reasonably be expected to have a material adverse effect on the
         Midstream Business of the Borrower, any Guarantor or any Midstream
         Subsidiary. No Default or Event of Default has occurred and is
         continuing.

                  (r) Except as would not have a material adverse effect on the
         conduct of the Midstream Business conducted by the Midstream
         Subsidiaries, the various gathering systems which comprise part of the
         Midstream Assets are covered by recorded fee deeds, right of ways,
         easements, leases, servitudes, permits, licenses, or other instruments
         in favor of the Midstream Subsidiaries (or their predecessors in title)
         and their successors and assigns, which instruments establish a
         contiguous right of way for the respective gathering systems and grant
         the right to construct, operate, and maintain the respective

                                       38
<PAGE>

         gathering system in, over, under, and across the land covered thereby;
         provided, that certain licenses and permits from railroads, utilities,
         meter sites, and from the various state and local Governmental
         Authorities and rights granted by Hydrocarbon producers on their
         respective properties may not be recorded. The pipelines comprising the
         various gathering systems which are part of the Midstream Assets of the
         Midstream Subsidiaries are located within the confines of contiguous
         rights of way and do not encroach upon any adjoining property in any
         material respects. The rights of ingress and egress held by the
         Midstream Subsidiaries with respect to such gathering systems allow the
         applicable Midstream Subsidiaries to inspect, operate, repair, and
         maintain such gathering systems in a normal manner consistent with past
         practices.

                                   ARTICLE V

                            COVENANTS OF THE BORROWER

                  SECTION 5.1. Affirmative Covenants. So long as any Letter of
Credit shall remain outstanding, any Letter of Credit Liability shall exist or
any Bank shall have any Letter of Credit Commitment hereunder, the Borrower
will, unless the Majority Banks shall otherwise consent in writing:

                  (a) Compliance with Laws, Etc. Comply, and cause each of its
         Subsidiaries to comply, in all material respects with all applicable
         laws, rules, regulations and orders (except where failure to comply
         could not reasonably be expected to have a material adverse effect on
         the business, assets, condition or operations of the Borrower and its
         Subsidiaries taken as a whole), such compliance to include the payment
         and discharge before the same become delinquent of all taxes,
         assessments and governmental charges or levies imposed upon it or any
         of its Subsidiaries or upon any of its property or any property of any
         of its Subsidiaries, and all lawful claims which, if unpaid, might
         become a Lien upon any property of it or any of its Subsidiaries;
         provided that neither the Borrower nor any Subsidiary of the --------
         Borrower shall be required to pay any such tax, assessment, charge,
         levy or claim which is being contested in good faith and by proper
         proceedings and with respect to which reserves in conformity with
         generally accepted accounting principles, if required by such
         principles, have been provided on the books of the Borrower or such
         Subsidiary, as the case may be.

                  (b) Reporting Requirements. Furnish to each of the Banks:

                           (i) as soon as possible and in any event within five
                  days after the occurrence of each Default or Event of Default,
                  continuing on the date of such statement, a statement of an
                  authorized financial officer of the Borrower setting forth the
                  details of such Default or Event of Default and the actions,
                  if any, which the Borrower has taken and proposes to take with
                  respect thereto;

                           (ii) as soon as available and in any event not later
                  than 60 days after the end of each of the first three quarters
                  of each fiscal year of the Borrower, (1) the Consolidated
                  balance sheet of the Borrower and its Consolidated
                  Subsidiaries as of the end of such quarter and the
                  Consolidated statements of income and cash

                                       39
<PAGE>

                  flows of the Borrower and its Consolidated Subsidiaries for
                  the period commencing at the end of the previous year and
                  ending with the end of such quarter, all in reasonable detail
                  and duly certified (subject to year-end audit adjustments and
                  the lack of footnotes) by an authorized financial officer of
                  the Borrower as having been prepared in accordance with
                  generally accepted accounting principles; provided that, if
                  any financial statement referred to in this clause (ii) of
                  Section 5.1(b) is readily available on-line through EDGAR as
                  of the date on which such financial statement is required to
                  be delivered hereunder, the Borrower shall not be obligated to
                  furnish copies of such financial statement; and (2) a
                  certificate of an authorized financial officer of the Borrower
                  (a) stating that he has no knowledge that a Default or Event
                  of Default has occurred and is continuing or, if a Default or
                  Event of Default has occurred and is continuing, a statement
                  as to the nature thereof and the action, if any, which the
                  Borrower proposes to take with respect thereto, and (b)
                  showing in detail the calculation supporting such statement in
                  respect of Sections 5.2(b) and 5.2(c);

                           (iii) as soon as available and in any event not later
                  than 105 days after the end of each fiscal year of the
                  Borrower, (1) a copy of the annual audit report for such year
                  for the Borrower and its Consolidated Subsidiaries, including
                  therein Consolidated balance sheet of the Borrower and its
                  Consolidated Subsidiaries as of the end of such fiscal year
                  and Consolidated statements of income and cash flows of the
                  Borrower and its Consolidated Subsidiaries for such fiscal
                  year, in each case prepared in accordance with generally
                  accepted accounting principles and reported on by Ernst &
                  Young, LLP or other independent certified public accountants
                  of recognized standing acceptable to the Majority Banks;
                  provided that if any financial statement referred to in this
                  clause (iii) of Section 5.1(b) is readily available on-line
                  through EDGAR as of the date on which such financial statement
                  is required to be delivered hereunder, the Borrower shall not
                  be obligated to furnish copies of such financial statement;
                  and (2) a letter of such accounting firm to the Banks (a)
                  stating that, in the course of the regular audit of the
                  business of the Borrower and its Consolidated Subsidiaries,
                  which audit was conducted by such accounting firm in
                  accordance with generally accepted auditing standards, such
                  accounting firm has obtained no knowledge that a Default or
                  Event of Default has occurred and is continuing, or if, in the
                  opinion of such accounting firm, a Default or Event of Default
                  has occurred and is continuing, a statement as to the nature
                  thereof, and (b) showing in detail the calculations supporting
                  such statement in respect of Sections 5.2(b) and 5.2(c),
                  (which letter may nevertheless be limited in form, scope and
                  substance to the extent required by applicable accounting
                  rules or guidelines in effect from time to time);

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

                                       40
<PAGE>

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

                           (vi) as soon as possible and in any event within 30
                  Business Days after the Borrower or any ERISA Affiliate of the
                  Borrower knows or has reason to know (A) that any Termination
                  Event described in clause (i) of the definition of Termination
                  Event with respect to any Plan has occurred that could have a
                  material adverse effect on the Borrower or any Material
                  Subsidiary of the Borrower or any ERISA Affiliate of the
                  Borrower or (B) that any other Termination Event with respect
                  to any Plan has occurred or is reasonably expected to occur
                  that could have a material adverse effect on the Borrower or
                  any Material Subsidiary of the Borrower or any ERISA Affiliate
                  of the Borrower, a statement of the chief financial officer or
                  chief accounting officer of the Borrower describing such
                  Termination Event and the action, if any, which the Borrower
                  or such Subsidiary or such ERISA Affiliate proposes to take
                  with respect thereto;

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

                           (viii) within 30 days following request therefor by
                  any Bank, copies of each Schedule B (Actuarial Information) to
                  each annual report (Form 5500 Series) of the Borrower or any
                  ERISA Affiliate of the Borrower with respect to each Plan;

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

                                       41
<PAGE>

                           (x) not more than 60 days (or 105 days in the case of
                  the last fiscal quarter of a fiscal year of the Borrower)
                  after the end of each fiscal quarter of the Borrower, a
                  certificate of an authorized financial officer of the Borrower
                  stating the respective ratings, if any, by each of S&P and
                  Moody's of the senior unsecured long-term debt of the Borrower
                  as of the last day of such quarter; and

                           (xi) promptly after any withdrawal or termination of
                  any letter of credit, guaranty, insurance or other credit
                  enhancement referred to in the second to last sentence of
                  Section 1.5 or any change in the indicated rating set forth
                  therein or any change in, or issuance, withdrawal or
                  termination of, the rating of any senior unsecured long-term
                  debt of the Borrower by S&P or Moody's, notice thereof.

                           (xii) Promptly after any officer of the Borrower
                  obtains knowledge thereof, notice of (1) any material
                  violation of, noncompliance with, or remedial obligations
                  under, any Environmental Protection Statute, and (2) any
                  material release or threatened material release of Hazardous
                  Substance or Hazardous Waste affecting any property owned,
                  leased or operated by the Borrower or any Subsidiary of the
                  Borrower that the Borrower or such Subsidiary is compelled by
                  the requirements of any Environmental Protection Statute to
                  report to any governmental agency, department, board or other
                  instrumentality,

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

                  (d) Preservation of Corporate Existence, Etc. Preserve and
         maintain, and cause each of its Subsidiaries to preserve and maintain,
         its corporate existence, rights, franchises and privileges in the
         jurisdiction of its incorporation, and qualify and remain qualified,
         and cause each Subsidiary to qualify and remain qualified, as a foreign
         corporation in each jurisdiction in which qualification is necessary or
         desirable in view of its business and operations or the ownership of
         its properties, except (i) in the case of any Subsidiary of the
         Borrower, where the failure of such Subsidiary to so preserve,
         maintain, qualify and remain qualified could not reasonably be expected
         to have a material adverse effect on the business, assets, condition or
         operations of the Borrower and its Subsidiaries taken as a whole; (ii)
         in the case of the Borrower, where the failure of the Borrower to
         preserve and maintain such rights, franchises and privileges and to so
         qualify and remain qualified could not reasonably be expected to have a
         material adverse effect on the business, assets, condition or
         operations of the Borrower and its Subsidiaries taken as a whole, (iii)
         the Borrower and its Subsidiaries may consummate any merger or
         consolidation permitted pursuant to Section 5.2(d), and (iv) the
         Borrower and any of its Subsidiaries may be converted into a limited
         liability company by statutory election;

                                       42
<PAGE>

         provided that any such conversion of the Borrower shall not affect its
         liabilities and obligations to the Banks pursuant to this Agreement.

                  (e) Acceptable Security Interest. Cause an Acceptable Security
         Interest to exist at all times in all Collateral, except as to the
         Excluded Collateral and as otherwise contemplated by Section 5.1(g).

                  (f) Further Assurances. At any time and from time to time, the
         Borrower shall, at its expense, promptly execute and deliver to the
         Collateral Trustee and/or the Collateral Agent such further instruments
         and documents, and take such further action (including, without
         limitation, with respect to the granting of a valid first priority
         Lien, subject to Permitted Liens, on any personal or real property of
         the Borrower, any Midstream Subsidiary or Williams Mobile Bay Producer
         Services, L.L.C. which, on the date of this Agreement, is subject to
         any contractual restriction prohibiting the granting of such a Lien on
         such property, which contractual restriction shall terminate prior to
         the Termination Date), as the Majority Banks may from time to time
         reasonably request, in order to further carry out the intent and
         purpose of the Credit Documents and to establish and protect the
         rights, interests and remedies created, or intended to be created, in
         favor of the Collateral Trustee, Collateral Agent or any of the Banks,
         including the execution, delivery, recordation and filing of security
         agreements, financing statements and continuation statements under the
         law of any applicable jurisdiction and mortgages and deeds of trust
         necessary to grant a valid first Lien on all Collateral of the Borrower
         and its Subsidiaries whether such Collateral is now owned, leased,
         possessed by license or any other means of acquiring a possessory
         interest or hereafter acquired or possessed (each such mortgage or deed
         of trust being an "Additional Mortgage"); provided, however, that (i)
         Williams GP LLC shall not be required to grant a Lien on any Equity
         Interests held by it in Williams Energy Partners L.P. and (ii) Williams
         Energy Partners L.P. shall not be required to grant a Lien on any of
         its personal or real property.

                  (g) Post-Closing Requirements. On or before the dates more
         fully set forth in Schedule XII hereto, the Borrower shall satisfy, or
         shall cause the satisfaction, of the items more fully set forth in such
         Schedule XII.

                  (h) Subsidiaries. Give the Agent thirty days prior written
         notice of the creation or acquisition of any Subsidiary, other than a
         Project Financing Subsidiary or any Subsidiary of Williams Energy
         Partners L.P., and concurrently with the creation or acquisition of any
         such Subsidiary, cause such Subsidiary, other than a Project Financing
         Subsidiary or any Subsidiary of Williams Energy Partners L.P., to
         provide to the Collateral Agent a Security Agreement granting an
         Acceptable Security Interest for the benefit of the Collateral Trustee,
         appropriate legal opinions and, if such Subsidiary owns any real
         property, a Mortgage covering such real property, all of which shall be
         in the form and substance satisfactory to the Collateral Agent.

                  (i) Bond Proceeds. On or before August 1, 2002, cause the net
         proceeds from the TGPL Bond Offerings to be maintained in a separate,
         segregated account in the name of TGPL to be used solely as set forth
         in the offering documents for the TGPL Bond Offering.

                  (j) Midstream Subsidiaries. Cause the representation set forth
         in Section 4.1(p) to be true at all times.

                  (k) Cash Deposits. Maintain all or substantially all of its
         cash deposits with one or more of the lenders under the Multiyear
         Williams Credit Agreement, other than any cash deposits held in local
         operational accounts or any international accounts.

                                       43
<PAGE>

                  (l) Barrett Liquidity Reserve. Cause RMT to at all times
         maintain the Barrett Liquidity Reserve (as defined in the Barrett Loan
         Agreement).

                  (m) Williams GP LLC. (i)Upon any sale or other disposition
         (other than a redemption) of any Equity Interests of Williams Energy
         Partners L.P. owned by Williams GP LLC, the Borrower shall furnish, or
         cause Williams GP LLC to furnish, to the Agent a fairness opinion with
         respect to such disposition prepared by a nationally recognized
         investment banking firm; (ii) the Borrower shall cause proceeds
         resulting from any redemption or disposition described in clause (i)
         which have been distributed by Williams GP LLC to, or otherwise
         received by, a Subsidiary (except Williams Energy Partners L.P. or a
         Subsidiary thereof) to be promptly delivered by such Subsidiary to the
         Collateral Trustee pursuant to the Collateral Trust Agreement, to be
         held by the Collateral Trustee as Collateral thereunder; and (iii) upon
         a purchase of any property by Williams GP LLC using proceeds from any
         redemption or disposition referred to in clause (i), the Borrower shall
         furnish, or cause Williams GP LLC to furnish, to the Agent a fairness
         opinion with respect to such purchase prepared by a nationally
         recognized investment banking firm.

                  SECTION 5.2. Negative Covenants. So long as any Letter of
Credit Liability shall exist or any Bank shall have any Letter of Credit
Commitment hereunder, the Borrower will not, without the written consent of the
Majority Banks:

                  (a) Liens, Etc. Create, assume, incur or suffer to exist, or
         permit any of its Subsidiaries to create, assume, incur or suffer to
         exist, any Lien on or in respect of any of its property, whether now
         owned or hereafter acquired, or assign or otherwise convey, or permit
         any such Subsidiary to assign or otherwise convey, any right to receive
         income, in each case to secure or provide for the payment of any Debt,
         trade payable or other obligation or liability of any Person (other
         than obligations or liabilities that are (i) neither Debt nor trade
         payables, (ii) incurred, and are owed to trading counterparties, in the
         ordinary course of the trading business of the Borrower or any
         Subsidiary, and (iii) secured only by cash, short-term investments or a
         Letter of Credit); provided, however, that notwithstanding the
         foregoing (1) the Borrower or any of its Subsidiaries may create,
         incur, assume or suffer to exist Permitted Liens and (2) RMT and RMT
         LLC may create, incur, assume or suffer to exist any Lien created
         pursuant to the Barrett Loan Agreement or documents related thereto.

                  (b) Debt.

                           (i) In the case of the Borrower, permit the ratio of
                  (A) the aggregate amount of Consolidated Debt of the Borrower
                  and its Consolidated Subsidiaries to (B) the sum of the
                  Consolidated Net Worth of the Borrower plus the aggregate
                  amount of Consolidated Debt of the Borrower and its
                  Consolidated Subsidiaries to exceed at any time (i) on or
                  before December 30, 2002, 0.70 to 1.00, (ii) after December
                  30, 2002 and on or before March 30, 2003, 0.68 to 1.00 and
                  (iii) after March 30, 2003, 0.65 to 1.00.

                           (ii) With respect to each of TGPL, TGT and NWP,
                  permit the ratio of (A) the aggregate amount of Consolidated
                  Debt of such Subsidiary and its

                                       44
<PAGE>

                  Consolidated Subsidiaries to (B) the sum of the Consolidated
                  Net Worth of such Subsidiary plus the aggregate amount of
                  Consolidated Debt of such Subsidiary and its Consolidated
                  Subsidiaries to exceed at any time 0.55 to 1.00.

                  (c) Cash Flow to Interest Expense Ratio. Permit, for any
         period of four consecutive quarters, the ratio of (A) the sum of Cash
         Flow of the Borrower plus Interest Expense of the Borrower to (B)
         Interest Expense of the Borrower to be less than 1.5 to 1.0.

                  (d) Merger and Sale of Assets. Merge or consolidate with or
         into any other Person, or sell, lease or otherwise transfer a material
         part of its assets, or permit any of its Major Subsidiaries to merge or
         consolidate with or into any other Person, or sell, lease or otherwise
         transfer a material part of such Major Subsidiary's assets, except that
         this Section 5.2(d) shall not prohibit any sale or transfer permitted
         by Section 5.2(e) or any TWC Asset Disposition.

                  (e) Asset Disposition. Sell, lease, transfer or otherwise
         dispose of, or permit any of its Material Subsidiaries or the
         Guarantors to sell, lease, transfer or otherwise dispose of, any
         property of the Borrower or any Guarantor or Material Subsidiary of the
         Borrower, except (i) sales of inventory in the ordinary course of
         business and on reasonable terms, (ii) sales of worn out or obsolete
         equipment in the ordinary course of business, if no Event of Default
         exists at the time of such sale, (iii) replacement of equipment in the
         ordinary course of business with other equipment at least as useful and
         beneficial to the Borrower or its Material Subsidiaries and their
         respective businesses as the equipment replaced if no Event of Default
         exists at the time of such replacement and an Acceptable Security
         Interest exists in such other equipment at the time of such
         replacement, (iv) sales of other immaterial Property (other than Equity
         Interests, Debt or other obligations of any Subsidiary) in the ordinary
         course of business and on reasonable terms, if no Event of Default
         exists at the time of such sale; provided that Property may not be sold
         pursuant to this clause (iv) if the aggregate fair market value of all
         Property sold pursuant to this clause (iv) exceeds $250,000 in any
         year, (v) sales of assets which are not Collateral for cash in arm's
         length transactions, (vi) sales or other dispositions of Williams
         Pipelines Central, Inc. or the Refineries, (vii) sales of MAPL and
         Seminole and (viii) sales or other dispositions of assets of Williams
         GP LLC or Williams Energy Partners L.P.; provided that, (A) so long as
         the Multiyear Williams Credit Agreement is still in effect, the
         proceeds received from any disposition permitted pursuant to clauses
         (i) through (vi) shall be applied in accordance with the terms and
         conditions of the Multiyear Williams Credit Agreement and (B) assets
         disposed of pursuant to clauses (i) through (v) shall not constitute a
         material part of the assets of TGPL, TGT or NWP. Upon receipt of a
         written request therefor from the Borrower relating to dispositions
         permitted pursuant to this Section 5.2(e), (x) the Collateral Agent
         will execute and deliver all documents as may reasonably be requested
         to effect a release of the Liens on any such Collateral held by the
         Collateral Trustee pursuant to the Collateral Trust Agreement and the
         other Security Documents and (y) each Bank shall be deemed to have
         affirmatively approved the release of such Collateral. Notwithstanding
         anything in this Section 5.2(e) to the contrary, nothing in this
         Agreement shall prohibit (1) the transfer of Equity Interests of RMT
         from TWC to RMT LLC or (2) TWC or any of its Subsidiaries (including
         RMT

                                       45
<PAGE>

         LLC, RMT and their respective Subsidiaries) from selling, leasing,
         transferring or otherwise disposing of any property of the Borrowers or
         any Subsidiaries of the Borrowers in accordance with the provisions of
         the Barrett Loan Agreement.

                  (f) Maintenance of Ownership of Certain Subsidiaries. Except
         with respect to Williams Energy Partners L.P., Williams Pipelines
         Central, Inc., the Refineries, MAPL, Seminole and their respective
         Subsidiaries, sell, issue or otherwise dispose of, or create, assume,
         incur or suffer to exist any Lien on or in respect of, or permit any of
         its Subsidiaries to sell, issue or otherwise dispose of or create,
         assume, incur or suffer to exist any Lien on or in respect of, any
         Equity Interests or any direct or indirect interest in any Equity
         Interests in the Borrower or any Material Subsidiary; provided,
         however, that this Section 5.2(f) shall not prohibit (i) Permitted
         Liens, (ii) the sale or other disposition of the Equity Interests in
         any Subsidiary of the Borrower to the Borrower or any Wholly-Owned
         Subsidiary of the Borrower if, but only if, (x) there shall not exist
         or result a Default or Event of Default and (y) in the case of each
         sale or other disposition referred to in this proviso involving the
         Borrower or any of its Subsidiaries, such sale or other disposition
         could not reasonably be expected to impair materially the ability of
         the Borrower to perform its obligations hereunder and under any other
         Credit Document and the Borrower shall continue to exist, (iii) any
         Subsidiary from selling or otherwise disposing of any direct or
         indirect Equity Interests in any Subsidiary of the Borrower (other than
         TGPL, TGT or NWP), (iv) the sale or other disposition of the Equity
         Interests in any Subsidiary of the Borrower pursuant to, and in
         accordance with, the Barrett Loan Agreement or (v) any TWC Asset
         Disposition; provided that, after giving effect to any sale or other
         disposition of any Equity Interests owned directly or indirectly by a
         Major Subsidiary, such Subsidiary continues to be a Major Subsidiary.
         Nothing herein shall be construed to permit the Borrower or any of its
         Subsidiaries to purchase shares, any interest in shares or any
         ownership interest in a WCG Subsidiary except as permitted by Section
         5.2(h).

                  (g) Agreements to Restrict Certain Transfers. Enter into or
         suffer to exist, or permit any of its Subsidiaries to enter into or
         suffer to exist, any consensual encumbrance or restriction on its
         ability or the ability of any of its Subsidiaries (i) to pay, directly
         or indirectly, dividends or make any other distributions in respect of
         its capital stock or pay any Debt or other obligation owed to the
         Borrower or to any of its Subsidiaries; or (ii) to make loans or
         advances to the Borrower or any Subsidiary thereof, except (1)
         encumbrances and restrictions on any Subsidiary that is not a Material
         Subsidiary, (2) those encumbrances and restrictions existing on the
         date hereof, (3) other customary encumbrances and restrictions now or
         hereafter existing of the Borrower or any Subsidiary thereof entered
         into in the ordinary course of business that are not more restrictive
         in any material respect than the encumbrances and restrictions with
         respect to the Borrower or its Subsidiaries existing on the date
         hereof, (4) encumbrances or restrictions on any Subsidiary that is
         obligated to pay Non-Recourse Debt arising in connection with such
         Non-Recourse Debt, (5) encumbrances and restrictions on Williams Energy
         Partners L.P. and (6) encumbrances and restrictions on any Subsidiary
         pursuant to the Barrett Loan Agreement.

                                       46
<PAGE>

                  (h) Loans and Advances; Investments. Make or permit to remain
         outstanding, or allow any of its Subsidiaries to make or permit to
         remain outstanding, any loan or advance to, or own, purchase or acquire
         any obligations or debt or Equity Interests of, any WCG Subsidiary,
         except that the Borrower and its Subsidiaries may (i) permit to remain
         outstanding, and to replace or refinance, loans and advances and other
         financing arrangements to, or Equity Interest in, a WCG Subsidiary
         existing or owned (in the case of such Equity Interests) as of the date
         hereof and listed on Exhibit C hereof, but no such replacement or
         refinancing shall exceed the amount of such loans, advances or other
         amounts outstanding immediately prior to such replacement or
         refinancing, (ii) pursuant to the WCG Unwind Transaction, acquire and
         own the promissory note referred to in clause (b) of the definition
         herein of WCG Unwind Transaction and (iii) receive any distribution
         from WCG or any Subsidiary thereof in connection with the bankruptcy
         proceedings of WCG or any Subsidiary thereof. Except for those
         investments permitted in subsections (i), (ii) and (iii) above, no
         Borrower shall, and no Borrower shall permit any of its Subsidiaries
         to, acquire or otherwise invest in Equity Interests in, or make any
         loan or advance to, a WCG Subsidiary.

                  (i) Compliance with ERISA. (i) Terminate, or permit any ERISA
         Affiliate of the Borrower to terminate, any Plan so as to result in any
         material liability of the Borrower or any ERISA Affiliate of the
         Borrower or any Material Subsidiary to the PBGC, or (ii) permit to
         exist any occurrence of any Termination Event with respect to a Plan
         which would have a material adverse effect on the Borrower or any
         Material Subsidiary of the Borrower.

                  (j) Transactions with Related Parties. Make any sale to, make
         any purchase from, extend credit to, make payment for services rendered
         by, or enter into any other transaction with, or permit any Material
         Subsidiary of the Borrower to make any sale to, make any purchase from,
         extend credit to, make payment for services rendered by, or enter into
         any other transaction with, any Related Party of the Borrower or of
         such Subsidiary unless as a whole such sales, purchases, extensions of
         credit, rendition of services and other transactions are (at the time
         such sale, purchase, extension of credit, rendition of services or
         other transaction is entered into) on terms and conditions reasonably
         fair in all material respects to the Borrower or such Subsidiary in the
         good faith judgment of the Borrower.

                  (k) Guarantees. After the date of this Agreement, enter into
         any agreement to guarantee or otherwise become contingently liable for,
         or permit any of its Subsidiaries to guarantee or otherwise become
         contingently liable for, Debt or any other obligation of any WCG
         Subsidiary or to otherwise assure a WCG Subsidiary, or any creditor of
         a WCG Subsidiary, against loss.

                  (l) Sale and Lease-Back Transactions. Enter into, or permit
         any of its Subsidiaries to enter into, any Sale and Lease-Back
         Transaction, if after giving effect thereto the Borrower would not be
         permitted to incur at least $1.00 of additional Debt secured by a Lien
         permitted by paragraph (y) of Schedule III.

                                       47
<PAGE>

                  (m) Use of Proceeds. Use any Letter of Credit for any purpose
         other than general corporate purposes relating to the business of the
         Borrower and its Subsidiaries, (including working capital and capital
         expenditures), or use any Letter of Credit in any manner which violates
         or results in a violation of law; provided, however, that no Letter of
         Credit will be used to acquire any equity security of a class which is
         registered pursuant to Section 12 of the Securities Exchange Act of
         1934, as amended (other than any purchase of common stock of any
         corporation, if such purchase is not subject to Sections 13 and 14 of
         the Securities Exchange Act of 1934 and is not opposed, resisted or
         recommended against by such corporation or its management or directors,
         provided that the aggregate amount of common stock of any corporation
         (other than Apco Argentina Inc., a Cayman Islands corporation)
         purchased during any calendar year shall not exceed 1% of the common
         stock of such corporation issued and outstanding at the time of such
         purchase) or in any manner which contravenes law, and no Letter of
         Credit will be used to purchase or carry any margin stock (within the
         meaning of Regulation U issued by the Federal Reserve Board), except
         purchases by the Borrower of its capital stock if, after giving effect
         thereto, no Letter of Credit would constitute purpose credit within the
         meaning of such Regulation U. Notwithstanding anything to the contrary
         contained herein, if any, (i) with respect to EMT, Letters of Credit
         shall only be used, directly or indirectly, as necessary for the
         orderly disposition of the Trading Book and (ii) no Letter of Credit
         shall be used to pay any principal amounts outstanding, interest, fees
         or other costs with respect to the Barrett Loan, it being understood
         that Letters of Credit may be used to support margin requirements with
         regard to Hedging Agreements on oil and gas.

                  (n) Restricted Payments. Declare or pay any dividends,
         purchase, redeem, retire, defease or otherwise acquire for value any of
         its Equity Interests now or hereafter outstanding, return any capital
         to its stockholders, partners or members (or the equivalent Persons
         thereof) as such, make any distribution of assets, Equity Interests,
         obligations or securities to its stockholders, partners or members (or
         the equivalent Person thereof) as such or issue or sell any Equity
         Interests or accept any capital contributions, or permit any of its
         Subsidiaries to do any of the foregoing, permit any of its Subsidiaries
         to purchase, redeem, retire, defease or otherwise acquire for value any
         Equity Interests in the Borrower or to issue or sell any Equity
         Interests therein, make any prepayment with respect to any Debt (other
         than the Progeny Facilities or Debt of Williams Energy Partners L.P.
         and its Subsidiaries) or repurchase any Debt securities except as
         required by the terms thereof in effect on the date hereof, except
         that, so long as no Default shall have occurred and be continuing at
         the time of any action described in clause (i) through (iv) below or
         would result therefrom:

                           (i) The Borrower may (A) declare and pay cash
                  dividends and distributions on its (1) 9 7/8ths% Cumulative
                  Convertible Preferred Stock, (2) December 2000 Cumulative
                  Convertible Preferred Stock and (3) March 2001 Mandatorily
                  Convertible Single Reset Preferred Stock, (B) declare and pay
                  cash dividends and distributions on TWC Preferred Stock issued
                  on or after July 30, 2002 in form and substance satisfactory
                  to the Agent and (C) in any Fiscal Quarter, declare and pay
                  cash dividends to its stockholders and purchase,
                  redeem, retire or otherwise acquire shares of its own
                  outstanding capital stock for cash if after giving effect
                  thereto the aggregate amount of such dividends, purchases,

                                       48
<PAGE>

                  redemptions, retirements and acquisitions paid or made in any
                  such Fiscal Quarter would be not greater than the sum of
                  $6,250,000;

                           (ii) any Subsidiaries of the Borrower may (A) declare
                  and pay cash dividends to the Borrower and (B) declare and pay
                  cash dividends to any other Guarantor of which it is a
                  Subsidiary;

                           (iii) Williams Energy Partners L.P. may declare and
                  pay cash distributions to its unitholders; provided that any
                  such cash distribution shall comply with the partnership
                  agreement governing Williams Energy Partners L.P.; and

                           (iv) Apco Argentina, Inc. may declare and pay
                  dividends in accordance with applicable laws and its governing
                  documents.

                  (o) Investments in Other Persons. Make or hold, or permit any
         of its Subsidiaries to make or hold, any Investment in any Person,
         except (i) equity Investments by the Borrower and its Subsidiaries in
         their Subsidiaries outstanding on the date hereof and additional
         investments in Subsidiaries engaged in businesses reasonably related to
         the businesses carried on by the Borrower and its Subsidiaries on the
         date hereof; (ii) loans and advances to employees in the ordinary
         course of the business of the Borrower and its Subsidiaries as
         presently conducted; (iii) Investments of the Borrower and its
         Subsidiaries in Cash Equivalents; (iv) Investments existing on the date
         hereof; (v) Investments by the Borrower in Hedge Agreements entered
         into in the ordinary course of business and not for speculative
         purposes; (vi) Investments consisting of intercompany debt; and (vii)
         other Investments in an aggregate amount invested not to exceed
         $50,000,000 annually; provided that, with respect to Investments made
         under this clause (vii), (1) any newly acquired or organized Subsidiary
         of the Borrower or any of its Subsidiaries shall be a wholly owned
         Subsidiary thereof; (2) immediately before and after giving effect
         thereto, no Default shall have occurred and be continuing or would
         result therefrom; and (3) any company or business acquired or invested
         in pursuant to this clause (vii) shall be in the same line of business
         as the business of the Borrower or any of its Subsidiaries.

                  (p) Subsidiary Debt. Permit any of its Subsidiaries to create,
         incur, assume or suffer to exist Debt, other than (i) debt incurred,
         assumed or suffered to exist by TGPL, TGT, NWP or Williams Energy
         Partners L.P. or its Subsidiaries, (ii) Debt incurred, assumed or
         suffered to exist by Subsidiaries (other than those referred to in
         clause (i) and Subsidiaries the stock of which is pledged under the
         Pledge Agreement) in an aggregate amount equal to $50,000,000, (iii)
         Debt in existence on the date hereof, (iv) Debt under the Guaranties,
         (v) Debt of the Project Financing Subsidiaries, (vi) Debt under the
         Barrett Loan Agreement and (vii) Debt consisting of intercompany debt
         so long as the obligations of the debtors thereunder are subordinated
         to their obligations under the Credit Documents and are incurred in the
         ordinary course of the cash management system of the Borrower and its
         Subsidiaries.

                                       49
<PAGE>

                                   ARTICLE VI

                                EVENTS OF DEFAULT

                  SECTION 6.1. Events of Default. If any of the following events
("Events of Default") shall occur and be continuing:

                  (a) The Borrower (i) shall fail to pay any Reimbursement
         Obligation when the same becomes due and payable, or (ii) shall fail to
         pay any interest on any Reimbursement Obligation within three days
         after the same becomes due and payable or (iii) shall fail to pay any
         fee or other amount to be paid by it hereunder or under any Credit
         Document to which it is a party within ten days after the same becomes
         due and payable; or

                  (b) Any certification, representation or warranty made by the
         Borrower herein or by the Borrower (or any officer of the Borrower) in
         writing under or in connection with this Agreement or any instrument
         executed in connection herewith (including representations and
         warranties deemed made pursuant to Section 3.2) shall prove to have
         been incorrect in any material respect when made or deemed made; or

                  (c) The Borrower shall fail to perform or observe (i) any
         term, covenant or agreement contained in Section 5.1(b) on its part to
         be performed or observed and such failure shall continue for five
         Business Days after the earlier of the date notice thereof shall have
         been given to the Borrower by the Agent or any Bank or the date the
         Borrower shall have knowledge of such failure, or (ii) any term,
         covenant or agreement contained in this Agreement (other than a term,
         covenant or agreement contained in Section 5.1(b), Section 5.2 or any
         other Credit Document on its part to be performed or observed and such
         failure shall continue for ten Business Days after the earlier of the
         date notice thereof shall have been given to the Borrower by the Agent
         or any Bank or the date the Borrower shall have knowledge of such
         failure; or (iii) any term, covenant or agreement contained in Section
         5.2; or

                  (d) The Borrower or any Subsidiary of the Borrower shall fail
         to pay any principal of or premium or interest on any Debt which is
         outstanding in a principal amount of at least $60,000,000 in the
         aggregate (excluding Debt incurred pursuant to any Letter of Credit) of
         the Borrower and/or such Subsidiary (as the case may be), when the same
         becomes due and payable (whether by scheduled maturity, required
         prepayment, acceleration, demand or otherwise), and such failure shall
         continue after the applicable grace period, if any, specified in the
         agreement or instrument relating to such Debt; or any other event shall
         occur or condition shall exist under any agreement or instrument
         relating to any such Debt and shall continue after the applicable grace
         period, if any, specified in such agreement or instrument, if the
         effect of such event or condition is to accelerate, or to permit the
         acceleration of, the maturity of such Debt; or any such Debt shall be
         declared to be due and payable, or required to be prepaid (other than
         by a regularly scheduled required prepayment, as required in connection
         with any permitted sale of assets or as required in connection with any
         casualty or condemnation), prior to the stated maturity thereof;
         provided, however, that the provisions of this Section 6.1(d)

                                       50
<PAGE>

         shall not apply to any Non-Recourse Debt of any non-material Subsidiary
         of the Borrower which is a Non-Borrowing Subsidiary as defined in the
         Multiyear Williams Credit Agreement; or

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

                  (f) Any judgment or order for the payment of money in excess
         of $60,000,000 shall be rendered against the Borrower or any Material
         Subsidiary of the Borrower and remain unsatisfied and either (i)
         enforcement proceedings shall have been commenced by any creditor upon
         such judgment or order or (ii) there shall be any period of 30
         consecutive days during which a stay of enforcement of such judgment or
         order, by reason of a pending appeal or otherwise, shall not be in
         effect; or

                  (g) Any Termination Event with respect to a Plan shall have
         occurred and, 30 days after notice thereof shall have been given to the
         Borrower by the Agent, (i) such Termination Event shall still exist and
         (ii) the sum (determined as of the date of occurrence of such
         Termination Event) of the Insufficiency of such Plan and the
         Insufficiency of any and all other Plans with respect to which a
         Termination Event shall have occurred and then exist (or in the case of
         a Plan with respect to which a Termination Event described in clause
         (ii) of the definition of Termination Event shall have occurred and
         then exist, the liability related thereto) is equal to or greater than
         $75,000,000; or

                  (h) The Borrower or any ERISA Affiliate of the Borrower shall
         have been notified by the sponsor of a Multiemployer Plan that it has
         incurred Withdrawal Liability to such Multiemployer Plan in an amount
         which, when aggregated with all other amounts required to be paid to
         Multiemployer Plans in connection with Withdrawal Liabilities
         (determined as of the date of such notification), exceeds $75,000,000
         in the aggregate or requires payments exceeding $50,000,000 per annum;
         or

                  (i) The Borrower or any ERISA Affiliate of the Borrower shall
         have been notified by the sponsor of a Multiemployer Plan that such
         Multiemployer Plan is in reorganization or is being terminated, within
         the meaning of Title IV of ERISA, if as a result of such reorganization
         or termination the aggregate annual contributions of the Borrower and
         its ERISA Affiliates to all Multiemployer Plans which are then in
         reorganization or being terminated have been or will be increased over
         the amounts

                                       51
<PAGE>

         contributed to such Multiemployer Plans for the respective plan years
         which include the date hereof by an amount exceeding $75,000,000;

                  (j) Any provision (other than any provision excepted from, or
         subject to a qualification in, the opinion delivered pursuant to
         Section 3.1(c), but only to the extent of such exception or
         qualification) of any Security Document for any reason is not a legal,
         valid, binding and enforceable obligation of the Borrower party thereto
         or the Borrower party thereto shall so state in writing;

                  (k) Any material portion of the Collateral that is not covered
         by adequate insurance shall be destroyed or any material portion of the
         Collateral shall otherwise become unavailable for use by its owner for
         a period in excess of 30 days (or 90 days if such owner has business
         interruption insurance adequate to cover the loss to it resulting from
         such Collateral being unavailable for use) or title to any material
         portion of the Collateral shall be successfully challenged; or

                  (l) Any "Default" or "Event of Default" as defined in any
         Security Document shall occur;

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

                  SECTION 6.2. LC Cash Collateral Accounts. Upon the occurrence
and during the continuance of any Event of Default (if the Agent has declared
all amounts owed hereunder to be due and payable), the Borrower agrees that it
shall forthwith, without any demand or the taking of any other action by any
Issuing Bank, the Agent, or any of the Banks, provide cover for the outstanding
Letter of Credit Liabilities by paying to the Agent immediately available funds
in an amount equal to the then aggregate undrawn face amount of all outstanding
Letters of Credit, which funds shall be deposited into a blocked deposit account
or accounts to be established and maintained at the office of Citibank (or an
affiliate thereof) in the name of the Agent as collateral security for any
outstanding Letter of Credit Liabilities (the "LC Cash Collateral Accounts").
The Borrower hereby pledges, and grants to the Agent for the ratable benefit of
each Issuing

                                       52
<PAGE>

Bank and the Banks, a security interest in all funds held in the LC Cash
Collateral Accounts from time to time and all proceeds thereof, as security for
the payment of the outstanding Letter of Credit Liabilities. The Agent shall
from time to time withdraw funds then held in the LC Cash Collateral Accounts to
satisfy the payment of any Reimbursement Obligations owing to any Issuing Bank
as shall have become or shall become due and payable by the Borrower to such
Issuing Bank under this Agreement in connection with the Letters of Credit. The
Agent shall exercise reasonable care in the custody and preservation of any
funds held in the LC Cash Collateral Accounts and shall be deemed to have
exercised such care if such funds are accorded treatment substantially
equivalent to that which the Agent accords its own property, it being understood
that the Agent shall not have any responsibility for taking any necessary steps
to preserve rights against any parties with respect to any such funds. If at any
time (a) no Event of Default exists and (b) the funds in the LC Cash Collateral
Accounts exceed the aggregate amount of all Letter of Credit Liabilities, the
Agent shall, upon request of the Borrower, return such excess to the Borrower or
to any Person designated by the Borrower.

                                  ARTICLE VII

                             [INTENTIONALLY OMITTED]

                                  ARTICLE VIII

              THE AGENT; ISSUING BANK; THE COLLATERAL AGENT; OTHERS

                  SECTION 8.1. Agent's Authorization and Action. Each Bank
hereby appoints and authorizes the Agent to take such action as agent on its
behalf and to exercise such powers under this Agreement as are delegated to the
Agent by the terms hereof, together with such powers as are reasonably
incidental thereto. As to any matters not expressly provided for by this
Agreement (including enforcement of the terms of this Agreement or collection of
the Reimbursement Obligations, fees and any other amounts due and payable
pursuant to this Agreement), the Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from
acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Majority Banks, and such instructions shall be
binding upon all Banks; provided, however, that the Agent shall not be required
to take any action which exposes the Agent to personal liability or which is
contrary to this Agreement or applicable law. The Agent agrees to give to each
Bank prompt notice of each notice given to it by the Borrower pursuant to the
terms of this Agreement.

                  SECTION 8.2. Agent's Reliance, Etc. Neither the Agent nor any
of its directors, officers, agents or employees shall be liable for any action
taken or omitted to be taken by 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
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; (ii) makes no warranty or
representation to any Bank and shall not be responsible to any Bank for any
statements, warranties or representations (whether written or oral) made in or
in connection with this Agreement; (iii) shall not have any duty to ascertain or
to inquire as to the performance

                                       53
<PAGE>

or observance of any of the terms, covenants or conditions of this Agreement on
the part of the Borrower or to inspect the property (including the books and
records) of the Borrower; (iv) shall not be responsible to any Bank for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value
of this Agreement or any other instrument or document furnished pursuant hereto;
(v) shall incur no liability under or in respect of any Letter of Credit or this
Agreement by acting upon any notice, consent, certificate or other instrument or
writing (which may be by telecopier, telegram, cable or telex) believed by it to
be genuine and signed or sent by the proper party or parties; and (vi) may treat
any Issuing Bank that issues or has issued a Letter of Credit as being the
issuer of such Letter of Credit for all purposes.

                  SECTION 8.3. Issuing Banks' Reliance, Etc. Neither the Issuing
Banks 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. The Issuing Banks shall not have, by reason of this Agreement a
fiduciary relationship in respect of any Bank; and nothing in this Agreement,
expressed or implied, is intended or shall be so construed as to impose upon the
Issuing Banks any obligations in respect of this Agreement except as expressly
set forth herein. Without limitation of the generality of the foregoing, the
Issuing Banks: (i) 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; (ii)
makes no warranty or representation to any Bank and shall not be responsible to
any Bank for any statements, warranties or representations (whether written or
oral) made in or in connection with this Agreement; (iii) shall not have any
duty to ascertain or to inquire as to the performance or observance of any of
the terms, covenants or conditions of this Agreement on the part of the Borrower
or to inspect the property (including the books and records) of the Borrower;
(iv) shall not be responsible to any Bank for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or
any other instrument or document furnished pursuant hereto; and (v) shall incur
no liability under or in respect of any Letter of Credit or this Agreement by
acting upon any notice, consent, certificate or other instrument or writing
(which may be by telecopier, telegram, cable or telex) believed by it to be
genuine and signed or sent by the proper party or parties.

                  SECTION 8.4. Rights. With respect to any Letter of Credit
Interest held by it, Citibank shall have the same rights and powers under this
Agreement as any other Bank and may exercise the same as though it was not the
Agent; with respect to its Letter of Credit Commitments, the Reimbursement
Obligations owed to it, any Letter of Credit Interest held by it, the Issuing
Banks shall have the right and power under this Agreement as any other Bank and
may exercise the same as though it was not an Issuing Bank, as the case may be.
The term "Bank" or "Banks" shall, unless otherwise expressly indicated, include
each of the Issuing Banks in their individual capacity. Citicorp, each Issuing
Bank and the respective affiliates of each may accept deposits from, lend money
to, act as trustee under indentures of, and generally engage in any kind of
business with, the Borrower, any Subsidiary of the Borrower, any Person who may
do business with or own, directly or indirectly, securities of the Borrower or
any such Subsidiary and any other Person, all as if Citicorp were not the Agent
and each Issuing Bank was not an Issuing Bank, in each case without any duty to
account therefor to the Banks.

                                       54
<PAGE>

                  SECTION 8.5. Bank Credit Decision. Each Bank acknowledges that
it has, independently and without reliance upon the Collateral Trustee, Agent,
the Arranger, the Issuing Banks or any other Bank and based on the financial
statements referred to in Section 4.1(e) and such other documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Bank also acknowledges that it will,
independently and without reliance upon the Collateral Trustee, Agent, the
Issuing Banks, the Arranger or any other Bank 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 8.6. Indemnification. The Banks agree to indemnify the
Agent (to the extent not reimbursed by the Borrower), ratably according to the
respective Reimbursement Obligations then owed to each of them (or if no
Reimbursement Obligations are at the time outstanding, ratably according to
their respective LC Participation Percentage), from and against any and all
claims, damages, losses, liabilities and expenses (including reasonable fees and
disbursements of counsel) of any kind or nature whatsoever which may be imposed
on, incurred by, or asserted against the Agent in any way relating to or arising
out of this Agreement or any action taken or omitted by the Agent under this
Agreement (EXPRESSLY INCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR
EXPENSE ATTRIBUTABLE TO THE ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE OF THE
AGENT, BUT EXCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE
ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE AGENT). IT IS
THE INTENT OF THE PARTIES HERETO THAT THE AGENT SHALL, TO THE EXTENT PROVIDED IN
THIS SECTION 8.6, BE INDEMNIFIED FOR ITS OWN ORDINARY, SOLE OR CONTRIBUTORY
NEGLIGENCE. Without limitation of the foregoing, each Bank agrees to reimburse
the Agent promptly upon demand for its ratable share of any out-of-pocket
expenses (including 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.

                  SECTION 8.7. Successor Agent. The Agent may resign at any time
as Agent under this Agreement by giving written notice thereof to the Banks and
the Borrower and may be removed at any time with or without cause by the
Majority Banks. Upon any such resignation or removal, the Majority Banks shall
have the right to appoint, with the consent the Borrower (which consent shall
not be unreasonably withheld and shall not be required if an Event of Default
exists), a successor Agent from among the Banks. If no successor Agent shall
have been so appointed by the Majority Banks with such consent, and shall have
accepted such appointment, within 30 days after the retiring Agent's giving of
notice of resignation or the Majority Banks' removal of the retiring Agent, then
the retiring Agent may, on behalf of the Banks, appoint a successor Agent, which
shall be a Bank which is a commercial bank organized under the laws of the
United States of America or of any State thereof and having a combined capital
and surplus of at least $500,000,000. Upon the acceptance of any appointment as
Agent under this Agreement by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Agent and shall function as the Agent under this
Agreement, and the retiring Agent shall be discharged

                                       55
<PAGE>

from its duties and obligations as Agent under this Agreement. After any
retiring Agent's resignation or removal hereunder as Agent, the provisions of
this Article VIII shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Agent under this Agreement.

                  SECTION 8.8. Collateral Agent's Authorization and Action. Each
Bank hereby appoints and authorizes the Collateral Agent to take such action as
agent on its behalf and to exercise such powers under this Agreement as are
delegated to the Collateral Agent by the terms hereof, together with such powers
as are reasonably incidental thereto. As to any matters not expressly provided
for by this Agreement (including enforcement of the terms of this Agreement or
collection of the Reimbursement Obligations, fees and any other amounts due and
payable pursuant to this Agreement), the Collateral Agent shall not be required
to exercise any discretion or take any action, but shall be required to act or
to refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Majority Banks, and such instructions
shall be binding upon all Banks; provided, however, that the Collateral Agent
shall not be required to take any action which exposes the Collateral Agent to
personal liability or which is contrary to this Agreement or applicable law. The
Collateral Agent agrees to give to each Bank prompt notice of each notice given
to it by the Borrower pursuant to the terms of this Agreement.

                  SECTION 8.9. Collateral Agent's Reliance, Etc. Neither the
Collateral 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
Collateral Agent: (i) 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; (ii)
makes no warranty or representation to any Bank and shall not be responsible to
any Bank for any statements, warranties or representations (whether written or
oral) made in or in connection with this Agreement; (iii) shall not have any
duty to ascertain or to inquire as to the performance or observance of any of
the terms, covenants or conditions of this Agreement on the part of the Borrower
or to inspect the property (including the books and records) of the Borrower;
(iv) shall not be responsible to any Bank for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or
any other instrument or document furnished pursuant hereto; (v) shall incur no
liability under or in respect of any Note, Letter of Credit or this Agreement by
acting upon any notice, consent, certificate or other instrument or writing
(which may be by telecopier, telegram, cable or telex) believed by it to be
genuine and signed or sent by the proper party or parties; and (vi) may treat
any Issuing Bank that issues or has issued a Letter of Credit as being the
issuer of such Letter of Credit for all purposes.

                  SECTION 8.10. Collateral Agent and Its Affiliates. With
respect to any Letter of Credit Interest held by it, each Bank which is also the
Collateral Agent shall have the same rights and powers under the Credit
Documents as any other Bank and may exercise the same as though it were not the
Collateral Agent; and the term "Bank" or "Banks" shall, unless otherwise
expressly indicated, include any Bank serving as the Collateral Agent in its
individual capacity. Any Bank serving as the Collateral Agent and its affiliates
may accept deposits from, lend

                                       56
<PAGE>

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 the Subsidiaries and any Person who may do business with or own
securities of the Borrower or any Subsidiary, all as if such Bank were not the
Collateral Agent and without any duty to account therefor to the Banks.

                  SECTION 8.11. Bank Credit Decision. Each of the Banks and the
other beneficiaries of any Security Document parties hereto (both on its own
behalf and on behalf of any of its affiliates that is a beneficiary of any
Security Document) acknowledges that it has, independently and without reliance
upon the Collateral Trustee, Collateral Agent or any other Bank and based on the
financial statements referred to in Section 4.1(e) and such other documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each of the Banks and the other
beneficiaries of any Security Document parties hereto (both on its own behalf
and on behalf of any of its Affiliates that is a beneficiary of any Security
Document) also acknowledges that it will, independently and without reliance
upon the Collateral Trustee, Collateral Agent or any other Bank 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 and the other Credit Documents. Neither the Collateral Trustee
nor the Collateral Agent shall have any duty or responsibility, either initially
or on a continuing basis, to provide any Person with any credit or other
information with respect thereto, whether coming into its possession before the
issuance of any Letter of Credit or at any time or times thereafter.

                  SECTION 8.12. Certain Rights of the Collateral Agent. If the
Collateral Agent shall request instructions from the Majority Banks with respect
to any act or action (including failure to act) in connection with this
Agreement or any other Credit Document, the Collateral Agent shall be entitled
to refrain from such act or taking such action unless and until the Collateral
Agent shall have received instructions from the Majority Banks; and it shall not
incur liability to any Person by reason of so refraining. Without limiting the
foregoing, no Bank nor any beneficiary of any Security Document shall have any
right of action whatsoever against the Collateral Agent as a result of its
acting or refraining from acting hereunder or under any other Loan Document in
accordance with the instructions of the Majority Banks or all of the Banks, as
the case may be. Furthermore, except for action expressly required of the
Collateral Agent hereunder, the Collateral Agent shall in all cases be fully
justified in failing or refusing to act hereunder unless it shall be
specifically indemnified to its satisfaction by the Banks against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.

                  SECTION 8.13. Collateral Agent Indemnification. The Banks
agree to indemnify the Collateral Agent (to the extent not reimbursed by the
Borrower), including to the extent the Collateral Agent is acting in its
capacity as "Collateral Trustee" under the Collateral Trust Agreement, ratably
according to the respective principal amounts of the Reimbursement Obligations
then owed to each of them (or if no Reimbursement Obligations are at the time
outstanding, ratably according to their LC Participation Percentage), from and
against any and all claims, damages, losses, liabilities and expenses (including
reasonable fees and disbursements of counsel) of any kind or nature whatsoever
which may be imposed on, incurred by, or asserted against the Collateral Agent
in any way relating to or arising out of this Agreement or any action taken or
omitted by the Collateral Agent under this Agreement (EXPRESSLY INCLUDING

                                       57
<PAGE>

ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE ATTRIBUTABLE TO THE ORDINARY,
SOLE OR CONTRIBUTORY NEGLIGENCE OF THE COLLATERAL AGENT, BUT EXCLUDING ANY SUCH
CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE ATTRIBUTABLE TO THE GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT OF THE COLLATERAL AGENT). IT IS THE INTENT OF THE PARTIES
HERETO THAT THE COLLATERAL AGENT SHALL, TO THE EXTENT PROVIDED IN THIS SECTION
8.5, BE INDEMNIFIED FOR ITS OWN ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE.
Without limitation of the foregoing, each Bank agrees to reimburse the
Collateral Agent promptly upon demand for its ratable share of any out-of-pocket
expenses (including counsel fees) incurred by the Collateral 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 Collateral Agent is not reimbursed for
such expenses by the Borrower.

                  SECTION 8.14. Successor Collateral Agent. The Collateral Agent
may resign at any time as Collateral Agent under this Agreement by giving
written notice thereof to the Banks and the Borrower and may be removed at any
time with or without cause by the Majority Banks. Upon any such resignation or
removal, the Majority Banks shall have the right to appoint, with the consent of
the Borrower (which consent shall not be unreasonably withheld and shall not be
required if an Event of Default exists), a successor Collateral Agent from among
the Banks. If no successor Collateral Agent shall have been so appointed by the
Majority Banks with such consent, and shall have accepted such appointment,
within 30 days after the retiring Collateral Agent's giving of notice of
resignation or the Majority Banks' removal of the retiring Collateral Agent,
then the retiring Collateral Agent may, on behalf of the Banks, appoint a
successor Collateral Agent, which shall be a Bank which is a commercial bank
organized under the laws of the United States of America or of any State thereof
and having a combined capital and surplus of at least $500,000,000. Upon the
acceptance of any appointment as Collateral Agent under this Agreement by a
successor Collateral Agent, such successor Collateral Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Collateral Agent and shall function as the Collateral Agent
under this Agreement, and the retiring Collateral Agent shall be discharged from
its duties and obligations as Collateral Agent under this Agreement. After any
retiring Collateral Agent's resignation or removal hereunder as Collateral
Agent, the provisions of this Article VIII shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Collateral Agent under
this Agreement.

                  SECTION 8.15. Other Agents; the Arranger. The other agents,
the Collateral Trustee, and the Arranger have no duties or obligations under
this Agreement. None of the other agents, the Collateral Trustee, nor the
Arranger shall have, by reason of this Agreement or the other Credit Documents,
a fiduciary relationship in respect of any Bank, and nothing in this Agreement
or other Credit Documents, express or implied, is intended or shall be so
construed to impose on any of the other agents or the Arranger any obligation in
respect of this Agreement or other Credit Documents.

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                                   ARTICLE IX

                                  MISCELLANEOUS

                  SECTION 9.1. Amendments, Etc. No amendment or waiver of any
provision of this Agreement, 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 Majority Banks, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver or consent shall, unless in
writing and signed by all the Banks, do any of the following: (a) waive any of
the conditions specified in Article III, (b) increase the Letter of Credit
Commitments of the Issuing Banks or subject any Bank to any additional
obligation, (c) reduce the Reimbursement Obligations or any fees or other
amounts payable hereunder, (d) postpone any date fixed for any payment of the
Reimbursement Obligations or any fees or other amounts payable hereunder, (e)
take any action which requires the signing of all the Banks pursuant to the
terms of this Agreement, (f) change the definition of Majority Banks or
otherwise change the percentage of the Letter of Credit Commitments or of the
aggregate unpaid principal amount of the Letter of Credit Liabilities or the
Reimbursement Obligations, or the number of Banks, which shall be required for
the Banks or any of them to take any action under this Agreement, (g) release
any of the Collateral (except as contemplated by Section 5.2(e)), or (h) amend
this Section 9.1; and provided further that no amendment, waiver or consent
shall, unless in writing and signed by the Agent in addition to the Banks
required above to take such action, affect the rights or duties of the Agent
under any Credit Document; and provided further that no amendment, waiver or
consent shall, unless in writing and signed by each Issuing Bank in addition to
the Banks required above to take such action, affect the rights or duties of any
Issuing Bank under any Credit Document; and provided further that no amendment,
waiver or consent shall, unless in writing and signed by the Collateral Agent in
addition to the Banks required above to take such action, affect the rights or
duties of the Collateral Agent under any Credit Document.

                  SECTION 9.2. Notices, Etc. All notices and other
communications provided for hereunder shall be in writing (including telecopy
communication) and mailed, telecopied or delivered, if to any Bank, as specified
opposite its name on Schedule I hereto or specified in a Transfer Agreement for
any assignee Bank delivered pursuant to Section 9.6(a); if to the Borrower, as
specified opposite its name on Schedule II hereto; if to an Issuing Bank to its
address as specified opposite its name on Schedule I; and if to Citicorp, as
Agent or Collateral Agent, to its address at 399 Park Avenue, New York, New York
10043, (telecopier number: (302) 894-6120), Attention: Williams Account Officer,
with a copy to Citicorp North America, Inc., 1200 Smith Street, Suite 2000,
Houston, Texas 77002 (telecopier number: (713) 654-2849), Attention: The
Williams Companies, Inc. Account Officer, or, as to the Borrower, any Issuing
Bank, the Collateral Agent, 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, each Issuing Bank, the Collateral Agent and
the Agent. All such notices and communications shall, when mailed or telecopied,
be effective when received in the mail, sent by telecopier to any party to the
telecopier number as set forth herein or on Schedule I or Schedule II or
specified in a Transfer Agreement for any assignee Bank delivered pursuant to
Section 9.6(a) (or other telecopy number specified by such party in a written
notice to the other parties hereto), respectively, except that

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notices and communications to the Agent shall not be effective until received by
the Agent. Any notice or communication to a Bank shall be deemed to be a notice
or communication to any SPC designated by such Bank and no further notice to an
SPC shall be required. Delivery by telecopier of an executed counterpart of this
Agreement or of any amendment or waiver of any provision of this Agreement or
any Schedule or Exhibit F hereto to be executed and delivered hereunder shall be
effective as delivery of a manually executed counterpart thereof.

                  SECTION 9.3. No Waiver; Remedies. No failure on the part of
any Bank or the Agent to exercise, and no delay in exercising, any right under
this Agreement or any other Credit Document shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right. The remedies
provided in this Agreement are cumulative and not exclusive of any remedies
provided by law.

                  SECTION 9.4. Costs and Expenses.

                  (a) (i) the Borrower agrees to pay on demand all reasonable
out-of-pocket costs and expenses of the Arranger and the Agent in connection
with the preparation, execution, delivery, administration, modification and
amendment of this Agreement, the other Credit Documents, if any, and the other
documents to be delivered under this Agreement, including the reasonable fees
and out-of-pocket expenses of counsel for the Agent with respect thereto and
with respect to advising the Agent as to its rights and responsibilities under
this Agreement and any other Credit Document, the reasonable costs and expenses
of the Issuing Banks in connection with any Letter of Credit, the reasonable
costs and expenses of the Collateral Agent and all amounts paid by the
Collateral Agent pursuant to any Security Document, and (ii) the Borrower agrees
to pay on demand all costs and expenses, if any (including reasonable counsel
fees and expenses, which may include allocated costs of in-house counsel), of
the Agent, the Collateral Agent, the Issuing Banks and each Bank in connection
with the enforcement (whether before or after the occurrence of an Event of
Default and whether through negotiations (including formal workouts or
restructurings), legal proceedings or otherwise) against the Borrower of any
Credit Document to be delivered by the Borrower under this Agreement.

                  (b) The Borrower agrees, to the fullest extent permitted by
law, to indemnify and hold harmless the Agent, the Collateral Agent, the Issuing
Banks, other agents, the Arranger and each Bank and each of their respective
directors, officers, employees and agents (the "Indemnified Parties") from and
against any and all claims, damages, losses, liabilities and expenses (including
reasonable fees and disbursements of counsel) of any kind or nature whatsoever
for which any of them may become liable or which may be incurred by or asserted
against any of the Indemnified Parties (other than by another Bank or any
successor or assign of another Bank), in each case in connection with or arising
out of or by reason of any investigation, litigation, or proceeding, whether or
not any of the Indemnified Parties is a party thereto, arising out of, related
to or in connection with this Agreement or any transaction in which any proceeds
of all or any part of Letters of Credit are applied (EXPRESSLY INCLUDING ANY
SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE ATTRIBUTABLE TO THE ORDINARY,
SOLE OR CONTRIBUTORY NEGLIGENCE OF SUCH INDEMNIFIED PARTY, BUT EXCLUDING ANY
SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE ATTRIBUTABLE TO THE GROSS
NEGLIGENCE

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<PAGE>

OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PARTY). IT IS THE INTENT OF THE
PARTIES HERETO THAT EACH INDEMNIFIED PARTY SHALL, TO THE EXTENT PROVIDED IN THIS
SECTION 9.4(b), BE INDEMNIFIED FOR ITS OWN ORDINARY, SOLE OR CONTRIBUTORY
NEGLIGENCE.

                  SECTION 9.5. Right of Set-off. Upon (i) the occurrence and
during the continuance of any Event of Default and (ii) the making of the
request or the granting of the consent specified by Section 6.1 to authorize the
Agent to declare the Reimbursement Obligations due and payable pursuant to the
provisions of Section 6.1, each Bank is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Bank to or for
the credit or the account of the Borrower against any and all of the obligations
of the Borrower now or hereafter existing under this Agreement and the other
Credit Documents, if any, held by such Bank, irrespective of whether or not such
Bank shall have made any demand under this Agreement or the other Credit
Documents and although such obligations may be unmatured. Each Bank agrees
promptly to notify the Borrower after such set-off and application made by such
Bank, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Bank under this
Section are in addition to other rights and remedies (including other rights of
set-off) which such Bank may have.

                  SECTION 9.6. Binding Effect; Transfers.

                  (a) This Agreement shall become effective when it shall have
been executed by the Borrower, the Agent, the Collateral Agent and the Issuing
Banks, and when each Bank listed on the signature pages hereof has delivered an
executed counterpart hereof to the Agent, has sent to the Agent a facsimile copy
of its signature hereon or has notified the Agent that such Bank has executed
this Agreement and thereafter shall be binding upon and inure to the benefit of
the Borrower, the Agent, the Collateral Agent, the Issuing Banks and each Bank
and their respective successors and assigns; provided that the Borrower shall
not have the right to assign any of its rights hereunder or any interest herein
without the prior written consent of the Agent. Each Bank may assign to one or
more banks, financial institutions or other entities all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Letter of Credit Commitments or its Letter of Credit Interest); provided,
however, that (i) each such assignment shall be of a constant, and not a
varying, percentage of all rights and obligations under this Agreement, (ii)
except in the case of an assignment of all of a Bank's rights and obligations
under this Agreement or an assignment to another Bank, the amount of the Letter
of Credit Commitment and/or LC Participation Percentage of the assigning Bank
being assigned pursuant to each such assignment (determined as of the date of
the Transfer Agreement with respect to such assignment) shall in no event be
less than $5,000,000 in the aggregate or such lesser amount as may be consented
to by the Agent and the Borrower, (iii) each such assignment shall be to an
Eligible Assignee, and (iv) the parties to each such assignment shall execute
and deliver to the Agent, for its acceptance and recording in the Register
maintained by the Agent, a Transfer Agreement and, unless the assignment is to
an affiliate of such Bank, a processing and recordation fee of $3,500. Upon such
execution, delivery, acceptance and recording, from and after the effective date
specified in each Transfer Agreement, (x) the assignee thereunder shall be a
party hereto and, to the extent that rights and obligations hereunder have been
assigned to it

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<PAGE>

pursuant to such Transfer Agreement, have the rights and obligations of a Bank
hereunder (including obligations to the Agent pursuant to Section 8.5) and (y)
the Bank assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Transfer Agreement,
relinquish its rights and be released from its obligations under this Agreement,
except for rights and obligations which continue after repayment of the
Reimbursement Obligations or termination of this Agreement pursuant to the
express terms of this Agreement (and, in the case of a Transfer Agreement
covering all of an assigning Bank's rights and obligations under this Agreement,
such Bank shall cease to be a party hereto).

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

                  (c) The Agent shall maintain a copy of each Transfer
Agreement, delivered to and accepted by it and the Register for the recordation
of the names and addresses of the Banks and the Letter of Credit Commitment of
and Letter of Credit Interest of each Bank from time to time.

                  (d) Upon its receipt of a Transfer Agreement executed and
completed by an assigning Bank and an assignee representing that it is an
Eligible Assignee (and consented to by the Agent and, if required, by the
Borrower), the Agent shall (i) accept such Transfer Agreement,

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<PAGE>

(ii) record the information contained therein in the Register and (iii) give
prompt notice thereof to the Borrower.

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

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

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

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<PAGE>

hereunder shall utilize the Letter of Credit Commitment of the Designating Bank
to the same extent, and as if, such Letter of Credit were issued by such
Designating Bank. Each party hereto hereby agrees that no SPC shall be liable
for any indemnity or similar payment obligation under this Agreement to the
extent that any such indemnity or similar payment obligations shall have been
paid by its Designating Bank. In furtherance of the foregoing, each party hereto
hereby agrees (which agreement shall survive the termination of this Agreement)
that, prior to the date that is one year and one day after the payment in full
of all outstanding commercial paper or other senior indebtedness of any SPC, it
will not institute against, or join any other person in instituting against such
SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under the laws of the United States. In addition, notwithstanding
anything to the contrary contained in this Section 9.6, an SPC may not assign
its interest in any Letter of Credit Interests except that, with notice to, but
without the prior written consent of, the Borrower and the Agent and without
paying any processing fee therefor, such SPC may assign all or a portion of its
interests in any Letter of Credit Interests to the Designating Bank or to any
financial institutions (consented to by the Borrower and Agent), providing
liquidity and/or credit support to or for the account of such SPC to support the
funding or maintenance of Letter of Credit Interests. Each Designating Bank
shall serve as the agent of its SPC and shall on behalf of its SPC: (i) receive
any and all payments made for the benefit of such SPC and (ii) give and receive
all communications and notices, and vote, approve or consent hereunder, and take
all actions hereunder, including votes, approvals, waivers, consents and
amendments under or relating to this Agreement and the other Credit Documents.
Any such notice, communication, vote, approval, waiver, consent or amendment
shall be signed by the Designating Bank for the SPC and need not be signed by
such SPC on its own behalf. The Borrower, the Issuing Banks, the Collateral
Agent, the Agent and the Banks may rely thereon without any requirement that the
SPC sign or acknowledge the same or that notice be delivered to the Borrower or
the SPC. This Section 9.6(g) may not be amended without the written consent of
any SPC, which shall have been identified to the Agent and the Borrower.

                  SECTION 9.7. [Intentionally Omitted.]

                  SECTION 9.8. Governing Law. This Agreement and the other
Credit Documents shall be governed by, and construed in accordance with, the
laws of the State of New York.

                  SECTION 9.9. Interest. It is the intention of the parties
hereto that the Agent, each Issuing Bank, the Collateral Agent and each Bank
shall conform strictly to usury laws applicable to it, if any. Accordingly, if
the transactions with the Agent, any Issuing Bank, the Collateral Agent or any
Bank contemplated hereby would be usurious under applicable law, then, in that
event, notwithstanding anything to the contrary in this Agreement or any other
agreement entered into in connection with or as security for this Agreement, it
is agreed as follows: (i) the aggregate of all consideration which constitutes
interest under applicable law that is contracted for, taken, reserved, charged
or received by the Agent, such Issuing Bank, the Collateral Agent or such Bank,
as the case may be, under this Agreement, any other Credit Document or under any
other agreement entered into in connection with or as security for this
Agreement or the other Credit Documents shall under no circumstances exceed the
maximum amount allowed by such applicable law and any excess shall be canceled
automatically and, if theretofore paid, shall at the option of the Agent, such
Issuing Bank, the Collateral Agent or such Bank, as the case may be, be credited
by the Agent, such Issuing Bank, the Collateral Agent or such Bank, as the case
may be, on the principal amount of the obligations owed to the Agent, such
Issuing Bank, the Collateral Agent or such

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<PAGE>

Bank, as the case may be, by the Borrower or refunded by the Agent, such Issuing
Bank, the Collateral Agent or such Bank, as the case may be, to the Borrower,
and (ii) in the event that the maturity of any obligation payable to the Agent,
such Issuing Bank, the Collateral Agent or such Bank, as the case may be, is
accelerated or in the event of any required or permitted prepayment, then such
consideration that constitutes interest under law applicable to the Agent, such
Issuing Bank, the Collateral Agent or such Bank, as the case may be, may never
include more than the maximum amount allowed by such applicable law and excess
interest, if any, to the Agent, such Issuing Bank, the Collateral Agent or such
Bank, as the case may be, provided for in this Agreement or otherwise shall be
canceled automatically as of the date of such acceleration or prepayment and, if
theretofore paid, shall, at the option of the Agent, such Issuing Bank, the
Collateral Agent or such Bank, as the case may be, be credited by the Agent,
such Issuing Bank, the Collateral Agent or such Bank, as the case may be, on the
principal amount of the obligations owed to the Agent, such Issuing Bank, the
Collateral Agent or such Bank, as the case may be, by the Borrower or refunded
by the Agent, such Issuing Bank, the Collateral Agent or such Bank, as the case
may be, to the Borrower.

                  SECTION 9.10. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.

                  SECTION 9.11. Survival of Agreements, Representations and
Warranties, Etc. All warranties, representations and covenants made by the
Borrower or any officer of the Borrower herein or in any certificate or other
document delivered in connection with this Agreement shall be considered to have
been relied upon by the Banks and shall survive the issuance and delivery of the
Notes, if any, the issuance of any Letters of Credit and the making of the
Advances regardless of any investigation. The indemnities and other payment
obligations of the Borrower set forth in Sections 2.4, 2.6 and 9.4, the
indemnities set forth in Section 2.10 and the indemnities by the Banks in favor
of the Agent and its officers, directors, employees and agents, will survive the
repayment of the Reimbursement Obligations and the termination of this
Agreement.

                  SECTION 9.12. Undertaking; Post Closing Actions. The parties
to this Agreement hereby agree and undertake to each use their best efforts and
to act diligently and promptly in taking any action or step necessary to resolve
or correct any error, omission, open item or general inconsistency or other
discrepancy which may exist, or of which the parties hereto may hereafter become
aware, in any Credit Document.

                  SECTION 9.13. Confidentiality. Each Bank agrees that it will
not disclose without the prior consent of the Borrower (other than to employees,
auditors, accountants, counsel or other professional advisors of the Agent or
any Bank) any information with respect to the Borrower or its Subsidiaries
(which term shall be deemed to include the WCG Subsidiaries for purposes of this
Section 9.13), which is furnished pursuant to this Agreement and which (i) the
Borrower in good faith considers to be confidential and (ii) is either clearly
marked confidential or is designated by the Borrower to the Agent and the Banks
in writing as

                                       65
<PAGE>

confidential, provided that any Bank may disclose any such information (a) as
has become generally available to the public, (b) as may be required or
appropriate in any report, statement or testimony submitted to or required by
any municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such Bank or submitted to or required by the Federal Reserve
Board or the Federal Deposit Insurance Corporation or similar organizations
(whether in the United States or elsewhere) or their successors, (c) as may be
required or appropriate in response to any summons or subpoena in connection
with any litigation, (d) in order to comply with any law, order, regulation or
ruling applicable to such Bank, (e) to the prospective transferee or grantee in
connection with any contemplated transfer of any of the Letter of Credit
Commitments or Letter of Credit Interests or any interest therein by such Bank
or the grant of an option to an SPC to fund any drawing under a Letter of
Credit, provided that such prospective transferee executes an agreement with or
for the benefit of the Borrower containing provisions substantially identical to
those contained in this Section 9.13, and provided further that if the
contemplated transfer is a grant of an option to fund a drawing under a Letter
of Credit to an SPC pursuant to Section 9.6(g), such SPC may disclose, on a
confidential basis, any non-public information relating to such drawings funded
by it to any rating agency, commercial paper dealer or provider of any surety,
guaranty or credit or liquidity enhancement to such SPC, and (ii) if prior
notice of the delivery thereof is given to the Borrower, such information as may
be required by law or regulation to be delivered, (f) in connection with the
exercise of any remedy by such Bank following an Event of Default pertaining to
this Agreement, any of the other Credit Documents or any other document
delivered in connection herewith, (g) in connection with any litigation
involving such Bank pertaining to this Agreement, any of the other Credit
Documents or any other document delivered in connection herewith, (h) to any
Bank, any Issuing Bank, the Collateral Agent or the Agent, or (i) to any
affiliate of any Bank, provided that such affiliate executes an agreement with
or for the benefit of the Borrower containing provisions substantially identical
to those contained in this Section 9.13.

                  SECTION 9.14. Waiver of Jury Trial. THE BORROWER, THE AGENT,
THE COLLATERAL AGENT, THE ISSUING BANK AND THE BANKS HEREBY IRREVOCABLY WAIVE
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OTHER CREDIT DOCUMENT, ANY LETTER OF CREDIT OR
ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

                  SECTION 9.15. Forum Selection and Consent to Jurisdiction. ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, ANY
LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
ORAL OR WRITTEN) OR ACTIONS OF THE AGENT, THE BANKS, ANY ISSUING BANK OR THE
BORROWER IN CONNECTION HEREWITH OR THEREWITH MAY BE BROUGHT AND MAINTAINED IN
THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING
ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE
AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER
PROPERTY MAY BE FOUND. THE BORROWER IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE

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WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED IN
SECTION 9.2. THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER
MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT
REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM. TO THE EXTENT THAT THE BORROWER HAS OR HEREAFTER MAY ACQUIRE
ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER
THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF
EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE BORROWER
HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY
IN RESPECT OF ITS OBLIGATIONS UNDER THE LOAN DOCUMENTS.

                                       67
<PAGE>

                  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.

                                     BORROWER:

                                     THE WILLIAMS COMPANIES, INC.

                                     By:  /s/ James G. Ivey
                                          --------------------------------------
                                     Name:    James G. Ivey
                                     Title:   Treasurer

<PAGE>

                                     BANKS:

                                     CITICORP USA, INC., as Agent and Collateral
                                     Agent

                                     By:
                                          --------------------------------------
                                           Authorized Officer

<PAGE>

                                      CITIBANK, N.A., as Bank and Issuing Bank

                                      By: /s/ J. Christopher Lyons
                                          --------------------------------------
                                           Authorized Officer

<PAGE>

                                      BANK OF AMERICA N.A., as Issuing Bank and
                                      Bank

                                      By: /s/ Claire Liu
                                          --------------------------------------
                                            Authorized Officer
                                            Claire Liu
                                            Managing Director
<PAGE>

                                      JPMORGAN CHASE BANK

                                      By: /s/ Sanjeev Khemlani, V.P.
                                          --------------------------------------
                                            Authorized Officer

<PAGE>

                                      TORONTO DOMINION (TEXAS), INC.

                                      By: /s/ Ann S. Slanis
                                          --------------------------------------
                                            Authorized Officer
                                            Ann S. Slanis
                                            Vice President
<PAGE>

                                      CREDIT LYONNAIS NEW YORK BRANCH

                                      By: /s/ Bernard Weymuller
                                          --------------------------------------
                                            Authorized Officer
                                            Bernard Weymuller,
                                            Senior Vice President

<PAGE>

                                      THE BANK OF NOVA SCOTIA

                                      By: /s/ Nadine Bell
                                          --------------------------------------
                                            Nadine Bell,
                                            Senior Manager
<PAGE>

                                      MERRILL LYNCH CAPITAL CORP.

                                      By: /s/ Carol J.B. Fosley
                                          --------------------------------------
                                            Authorized Officer
                                            Carol J.B. Fosley
                                            Vice President
                                            Merrill Lynch Capital Corp.
<PAGE>

                                      LEHMAN COMMERCIAL PAPER INC.

                                      By: /s/ Michele Swanson
                                          --------------------------------------
                                            Authorized Officer
                                            Michele Swanson
                                            Authorized Signatory

<PAGE>

                                   SCHEDULE I

                           APPLICABLE LENDING OFFICES

Name of Bank                  Lending Office
------------                  --------------
Citibank N.A.                 Citibank N.A.
                              399 Park Avenue
                              New York, New York  10043

                              Notices:
                              Citibank, N.A.
                              399 Park Avenue
                              New York, New York  10043
                              Telecopier:  (212) 527-1084
                              Attn:  Christine Grundel
                              Dept:  Medium Term Finance

                              with copies to:
                              Citicorp North America, Inc.
                              1200 Smith Street, Suite 2000
                              Houston, Texas  77002
                              Telecopier:  (713) 654-2849
                              Attn:  The Williams Companies, Inc.
                              Account Officer

Citicorp USA, Inc.            Citicorp USA, Inc.
                              399 Park Avenue
                              New York, New York  10043

                              Notices:
                              Citicorp USA, Inc.
                              399 Park Avenue
                              New York, New York  10043
                              Telecopier:  (212) 527-1084
                              Attn:  Christine Grundel
                              Dept:  Medium Term Finance

                              with copies to:
                              Citicorp North America, Inc.
                              1200 Smith Street, Suite 2000
                              Houston, Texas  77002
                              Telecopier:  (713) 654-2849
                              Attn:  The Williams Companies, Inc.
                              Account Officer

The Bank of Nova Scotia       The Bank of Nova Scotia
                              600 Peachtree Street, N.E., Suite 2700
                              Atlanta, Georgia 30308
                              Telecopier:  (404) 888-8998
                              Telephone:  (404) 877-1555

<PAGE>

                              Attn: Cleve Boushey

                              with copies to:
                              1100 Louisiana, Suite 3000
                              Houston, Texas 77002
                              Telecopier:  (713) 752-2425
                              Telephone:  (713) 759-3435
                              Attn: Joe Lattanzi

                              Telecopier:  (713) 752-2425
                              Telephone:  (713) 759-3426
                              Attn: John Frazell

Bank of America, N.A.         Bank of America, N.A.
                              901 Main Street, 14th Floor
                              Dallas, Texas 75202
                              Telecopier:  (214) 290-9415
                              Telephone:  (214) 209-1228
                              Attn:  Marija Salic

                              with copies to:
                              Bank of America, N.A.
                              Three Allen Center, Suite 4550
                              Houston, Texas 77002
                              Telecopier:  (713) 651-4807
                              Telephone:  (713) 651-4855
                              Attn:  Claire Liu

JPMorgan Chase Bank           JPMorgan Chase Bank
                              270 Park Avenue, 23rd Floor
                              New York, New York 10017
                              Telecopier:  (212) 270-3089
                              Telephone:  (212) 270-7056
                              Attn:  Steve Wood

Credit Lyonnais               Credit Lyonnais
New York Branch               1301 Travis, Suite 2100
                              Houston, Texas 77002
                              Telecopier:  (713) 890-8666
                              Telephone:  (713) 890-8605
                              Attn:  Rich Kaufman

                              Telecopier:  (713) 751-0307
                              Telephone:  (713) 753-8741
                              Attn:  Ericka Jackson

Toronto Dominion (Texas),     Toronto Dominion (Texas), Inc.
Inc.                          909 Fannin Street, 17th Floor
                              Houston, Texas 77010
                              Swift Address:  TDOMU S4H
                              Telecopier:  (713) 951-9921
                              Attn:  Ann Slanis

<PAGE>

Merrill Lynch Capital Corp.   Merrill Lynch Capital Corp.
                              4 World Financial Center, 7th Floor
                              New York, New York 10080
                              Telecopier:  (212) 738-1649
                              Telephone:  (212) 449-8414
                              Attn:  Carol Seely (Notices)

                              Telecopier:  (212) 738-1719
                              Telephone:  (212) 449-6996
                              Attn:  Mark Campbell (Operations)
Lehman  Commercial Paper
Inc.                          Lehman Commercial Paper Inc.
                              745 Seventh Avenue, 19th Floor
                              New York, NY  10019
                              Telecopier:  (212) 526-0242/7691
                              Telephone:  (212) 526-0330
                              Attn:  Michele Swanson (Credit)

                              Telecopier:  (212) 526-6653
                              Telephone:  (212) 526-3321
                              Attn:  Marie Cowell (Operations)

<PAGE>

                                   SCHEDULE II

                              BORROWER INFORMATION

Name of Borrower                       Information for Notices
----------------                       -----------------------
The Williams Companies, Inc.           The Williams Companies, Inc.
                                       One Williams Center, Suite 5000
                                       Tulsa, Oklahoma  74172
                                       Attention:  Patti J. Kastl
                                       Telecopier:  (918) 573-2065
                                       Telephone:  (918) 573-2172

<PAGE>

                                  SCHEDULE III

                            PERMITTED BORROWER LIENS

(a) (i) Any Lien existing on any property at the time of the acquisition thereof
and not created in contemplation of such acquisition by the Borrower or any of
its Subsidiaries, whether or not assumed by the Borrower or any of its
Subsidiaries, (ii) purchase money, construction or analogous Liens securing
obligations incurred in connection with or financing the direct or indirect
costs of or relating to the acquisition, construction (including design,
engineering, installation, testing and other related activities), development
(including drilling), improvement, repair or replacement of property (including
such Liens securing Debt or other obligations incurred in connection with the
foregoing or within 30 days of the later of (x) the date on which such Property
was acquired or construction, development, improvement, repair or replacement
thereof was complete or (y) if applicable, the final "in service" date for
commencement of full operations of such property), provided that all such Liens
attach only to the property acquired, constructed, developed, improved or
repaired or constituting replacement property, and the principal amount of the
Debt or other obligations secured by such Lien, together with the principal
amount of all other Debt secured by a Lien on such property, shall not exceed
the gross acquisition, construction, replacement and other costs specified above
of or for the property, (iii) Liens on receivables created pursuant to a sale,
securitization or monetization of such receivables, and Liens on rights of the
Borrower or any Subsidiary related to such receivables which are transferred to
the purchaser of such receivables in connection with such sale, securitization
or monetization; provided that the Liens secure only the obligations of the
Borrower or any of its Subsidiaries in connection with such sale, securitization
or monetization, (iv) Liens created by or reserved in any operating lease
(whether for real or personal property) entered into in the ordinary course of
business (excluding Synthetic Leases) provided that the Liens created thereby
(1) attach only to the Property leased to the Borrower or one of its
Subsidiaries, pursuant to such operating lease and (2) secure only the
obligations under such lease and supporting documents that do not create
obligations other than with respect to the leased property (including for rent
and for compliance with the terms of the lease), (v) Liens on property subject
to a Capital Lease created by such Capital Lease and securing only obligations
under such Capital Lease and supporting documents that do not create obligations
other than with respect to the leased property, (vi) any interest or title of a
lessor in the property subject to any Capital Lease, Synthetic Lease or
operating lease, (vii) Liens in the form of filed Uniform Commercial Code or
personal property security statements (or similar filings outside Canada and the
United States) to perfect any Permitted Lien, and (viii) Liens on up to four
aircraft owned or leased by the Borrower or any Subsidiary of the Borrower.

(b) Any Lien existing on any property of a Subsidiary of the Borrower at the
time it becomes a Subsidiary of the Borrower and not created in contemplation
thereof and any Lien existing on any property of any Person at the time such
Person is merged or liquidated into or consolidated with the Borrower or any
Subsidiary thereof and not created in contemplation thereof.

(c) Mechanics', materialmen's, workmen's, warehousemen's, carrier's, landlord's
or other similar Liens arising in the ordinary

<PAGE>

course of business securing amounts incurred in the ordinary course of business
which are not more than 90 days past due or are being contested in good faith by
appropriate proceedings.

(d) Liens arising by reason of pledges, deposits or other security to secure
payment of workmen's compensation insurance or unemployment insurance, pension
plans or systems and other types of social security, and good faith deposits or
other security to secure tenders or leases of property or bids, in each case to
secure obligations of the Borrower or any of its Subsidiaries under such
insurance, tender, lease, bid or contract, as the case may be; provided,
however, that the only Liens permitted by this paragraph (d) shall be Liens
incurred in the ordinary course of business that do not secure any Debt or
accounts payable (other than accounts payable to the counterparties or obligees
applicable to the foregoing).

(e) Liens on deposits or other security given to secure public or statutory
obligations, or to secure or in lieu of surety bonds (other than appeal bonds)
and deposits as security for the payment of taxes or assessments or other
similar charges, in each case to secure obligations of the Borrower or any of
its Subsidiaries arising in the ordinary course of business; provided, however,
that the aggregate amount of obligations secured by Liens permitted by this
paragraph (e) shall not exceed 10% of Consolidated Tangible Net Worth of the
Borrower.

(f) Any Lien 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 (i) as a condition to the transaction by the Borrower or
any of its Subsidiaries of any business or the exercise by the Borrower or any
of its Subsidiaries of any privilege or license, (ii) to enable the Borrower or
any of its Subsidiaries to maintain self-insurance or to participate in any fund
for liability on any insurance risks or (iii) in connection with workmen's
compensation, unemployment insurance, old age pensions or other social security
with respect to the Borrower or any of its Subsidiaries to share in the
privileges or benefits required for companies participating in such
arrangements.

(g) Liens incurred in the ordinary course of business upon rights-of-way
securing obligations (other than Debt and trade payables) of the Borrower or any
of its Subsidiaries.

(h) Undetermined mortgages and charges incidental to construction or maintenance
arising in the ordinary course of business which are not more than 90 days past
due or are being contested in good faith by appropriate proceedings.

(i) 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.

(j) The Lien of taxes, customs duties or other governmental charges or
assessments that are not at the time determined (or, if determined, are not at
the time delinquent), or that are delinquent but the validity of which is being
contested in good faith by the Borrower or any of its Subsidiaries by
appropriate proceedings and with respect to which reserves in conformity with
generally accepted accounting principles, if required by such principles, have
been provided on the books of the Borrower or the relevant Subsidiary of the
Borrower, as the case may be.

                                       2
<PAGE>

(k) The Lien reserved in (i) leases entered into in the ordinary course of
business for rent and for compliance with the terms of the lease in the case of
real or personal property leasehold estates or (ii) leases and sub-leases
granted to others that do not materially interfere with the ordinary course of
business of the Borrower and its Subsidiaries, taken as a whole.

(l) Defects and irregularities in the titles to any property (including
rights-of-way and easements) which are not material to the business, assets,
operations or financial condition of the Borrower and its Subsidiaries, taken as
a whole.

(m) Easements, exceptions or reservations in any property of the Borrower or any
of its Subsidiaries granted or reserved in the ordinary course of business for
the purpose of pipelines, roads, equipment, streets, alleys, highways,
railroads, 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, or in favor of governmental authorities or public utilities, in each
case above which do not materially impair the use of such property for the
purposes for which it is held by the Borrower or such Subsidiary.

(n) Rights reserved to or vested in any municipality or public authority to
control or regulate any property of the Borrower or any of its Subsidiaries, 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.

(o) Any obligations or duties, affecting the property of the Borrower or any of
its Subsidiaries, to any municipality or public authority with respect to any
franchise, grant, license or permit.

(p) The Liens of any judgments in an aggregate amount for the Borrower and all
of its Subsidiaries (i) not in excess of $8,500,000, the execution of which has
not been stayed and (ii) not in excess of $40,000,000, the execution of which
has been stayed and which have been appealed and secured, if necessary, by a
stay or appeal bond or other security of similar effect and stay or appeal bonds
in respect of the judgments permitted in clause (ii).

(q)      Zoning laws and ordinances.

(r) Liens existing on July 1, 2002, that secure only Debt and other obligations
incurred or committed and available for draw down on or prior to or outstanding
on July 1, 2002 and listed on Schedule IX as secured by such Liens.

(s) Liens existing on July 1, 2002 (i) that cover only immaterial assets and
(ii) that secure only Debt and other obligations incurred or committed and
available for draw down on or prior to or outstanding on July 1, 2002.

(t) Liens reserved in customary oil, gas and/or mineral leases for bonus or
rental payments and for compliance with the terms of such leases and Liens
reserved in customary operating agreements, farm-out and farm-in agreements,
exploration agreements, development agreements and other similar agreements for
compliance with the terms of such agreements; provided that (i) such Liens do
not secure Debt or accounts payable (other than obligations under such lease or

                                       3
<PAGE>

agreement, as the case may be) and (ii) such leases and agreements are entered
into in the ordinary course of business.

(u) Liens arising in the ordinary course of business out of all presently
existing and future division and transfer orders, advance payment agreements,
processing contracts, gas processing plant agreements, operating agreements, gas
balancing or deferred production agreements, participation, joint venture, joint
operating, pooling, unitization or communitization agreements, pipeline,
gathering or transportation agreements, platform agreements, drilling contracts,
injection or repressuring agreements, cycling agreements, construction
agreements, salt water or other disposal agreements, leases, sub-leases or
rental agreements, royalty interests, overriding royalty interests, farm-out and
farm-in agreements, exploration and development agreements, and any and all
other contracts or agreements covering, arising out of, used or useful in
connection with or pertaining to the exploration, development, operation,
production, sale, use, purchase, exchange, storage, separation, dehydration,
treatment, compression, gathering, transportation, processing, improvement,
marketing, disposal or handling of any property of a Person (each such order,
agreement or contract being a "Subject Document"), provided that and to the
extent that (i) such Subject Documents are entered into the ordinary course of
business and contain terms customary for such documents in the industry, (ii)
such permitted Liens shall not include any security interests in accounts
receivable or other receivables and do not secure Debt or accounts payable
(other than accounts payable arising under the particular Subject Document that
creates the Lien), and (iii) such Subject Documents do not create nor do such
Liens secure Financing Transactions.

(v) Liens arising by law under Section 9.343 of the Texas Uniform Commercial
Code or similar statutes of states other than Texas.

(w) Liens arising pursuant to the Security Documents which secure the
obligations of TWC and its Subsidiaries under this Agreement and the Multiyear
Williams Credit Agreement and certain public debt of TWC.

(x) Liens in existence prior to the date hereof in the nature of a right of
offset or netting of cash amounts owed arising in the ordinary course of
business (and Liens on the trading receivables owed by any trading counterparty
and/or affiliate thereof to the Borrower or any affiliate thereof granted by the
Borrower or any such affiliate thereof under agreements commonly in use in the
industry of the Borrower or such affiliate, but solely to secure the offset or
netting rights of such trading counterparty and/or affiliates thereof to the
payment of such trading receivables arising from and to the extent of the
trading obligations of the Borrower or any affiliate thereof to such trading
counterparty or its affiliates).

(y) Any Lien not permitted by paragraphs (a) through (x) above or (z) through
(ii) below securing Debt of the Borrower or any of its Subsidiaries if at the
time of, and after giving effect to, the creation or assumption of any such
Lien, the aggregate (without duplication) of the principal or equivalent amount
of all Debt of the Borrower and its Subsidiaries secured by all such Liens not
so permitted by paragraphs (a) through (x) above or (z) through (ii) below plus
the amount of Attributable Obligations (other than those relating to Liens
described in clause (a)(viii)) of the Borrower and its Subsidiaries in respect
of Sale and Lease-Back Transactions permitted by Section 5.2(l) does not exceed
$100,000,000.

                                      4

<PAGE>

(z) Any overriding royalties or other rights of Pacific Northwest Pipeline
Corporation, a Delaware corporation ("Pacific") and Phillips Petroleum Company
("Phillips") or their respective successors in interest under a contract dated
January 9, 1953, as amended, between Phillips and Pacific, to which the Borrower
is successor in interest; and the obligations of the Borrower to surrender,
transfer, release or reassign the leases or interests or rights to which said
instruments relate under the conditions and upon the occurrence of the events
specified in said instruments.

(aa) Any option or other agreement to purchase any property of the Borrower or
any Subsidiary the purchase, sale or other disposition of which is not
prohibited by any other provision of this Agreement.

(bb) Liens securing reimbursement obligations with respect to letters of credit
that encumber documents and other property relating to such letters of credit
and the proceeds and products thereof.

(cc) Liens on the products and proceeds (including insurance, condemnation and
eminent domain proceeds) of and accessions to, and contract or other rights
(including rights under insurance policies and product warranties) derivative of
or relating to, property permitted to be subject to Liens under this Agreement
but subject to the same restrictions and limitations herein set forth as to
Liens on such property (including the requirement that such Liens on products,
proceeds, accessions and rights secure only obligations that such property is
permitted to secure).

(dd) Liens on the Property of a Project Finance Subsidiary or the Equity
Interests in such Project Finance Subsidiary securing the Non-Recourse Debt of
such Project Finance Subsidiary.

(ee) Liens on cash and short-term investments incurred in the ordinary course of
business, consistent with past practice and not for the purpose of securing Debt
(i) deposited by the Borrower or any of its Subsidiaries in margin accounts with
or on behalf of futures contract brokers or other counterparties or (ii) pledged
by the Borrower or any of its Subsidiaries, in the case of each of clauses (i)
and (ii) above, to secure its obligations with respect to (x) contracts
(including without limitation, physical delivery, option (whether cash or
financial), exchange, swap and futures contracts) for the purchase or sale of
any energy-related commodity or (y) interest rate or currency rate management
contracts.

(ff) Liens securing Debt of Williams Energy Partners L.P. and/or its
Subsidiaries; provided that such Liens shall only apply to assets owned directly
by William Energy Partners L.P. or its Subsidiaries.

(gg)     Liens securing the Barrett Loan.

(hh) Liens securing Permitted Refinancing Debt (as defined below) (and related
obligations) covering substantially the same collateral securing (immediately
prior to such refinancing) the Debt Refinanced (as defined below) by such
Permitted Refinancing Debt; provided that: (i) the principal amount of such
Permitted Refinancing Debt does not exceed the principal amount of the Debt
Refinanced (plus the amount of penalties, premiums (including required premiums
and the amount of any premiums reasonably determined by the Borrower being in
its best economic interest and as necessary to accomplish such Refinancing by
means of a tender offer or privately

                                       5
<PAGE>

negotiated repurchase), fees, accrued interest and reasonable expenses and other
obligations incurred in connection therewith) at the time of refinancing; and
(ii) such Debt is incurred either by the Borrower or by such Subsidiary that is
the obligor of the Debt being Refinanced. "Permitted Refinancing Debt" means any
Debt (other than Debt referred to clause (gg) above) of the Borrower or any of
its Subsidiaries issued to Refinance other Debt of the Borrower or any such
Subsidiaries. "Refinance" means, in respect of any Debt (other than Debt
referred to clause (gg) above), to refinance, extend, renew, refund, repay,
prepay, replace, acquire, redeem, defease or retire, or to issue other Debt in
exchange or replacement, directly or indirectly for, such Debt in whole or in
part.

(ii) Liens extending, renewing or replacing any of the foregoing Liens (other
than Liens referred to in clause (gg) above), provided that the principal amount
of the Debt or other obligation secured by such Lien is not increased or the
maturity thereof shortened and such Lien is not extended to cover any additional
Debt, obligations or property, other than like obligations of no greater
principal amount and the substitution of like property (or specific categories
of property of the same grantor to the extent the terms of the Lien being
extended, renewed or replaced, extended to or covered such categories of
property) of no greater value.

                                       6
<PAGE>

                                   SCHEDULE IV

                                   COMMITMENTS

                               AS OF JULY 31, 2002

<Table>
<Caption>
                 BANKS               LETTER OF CREDIT COMMITMENT      LC PARTICIPATION PERCENTAGE
                 -----               ---------------------------      ---------------------------
<S>                                    <C>                                 <C>
CITIBANK, N.A.                              $200,000,000                           0
BANK OF AMERICA N.A.                        $200,000,000                        20.625%
CITICORP USA, INC.                                0                             20.625%
JPMORGAN CHASE BANK                               0                             16.25%
TORONTO DOMINION (TEXAS), INC.                    0                              12.5%
CREDIT LYONNAIS NEW YORK BRANCH                   0                              12.5%
THE BANK OF NOVA SCOTIA                           0                              12.5%
MERRILL LYNCH CAPITAL CORP.                       0                              2.5%
LEHMAN COMMERCIAL PAPER INC.                      0                              2.5%
TOTAL:                                      $400,000,000                         100%
</Table>

<PAGE>

                                   SCHEDULE V

                                RATING CATEGORIES

<Table>
<Caption>
                                                                                Applicable       Applicable LC
  Rating                S&P or Moody's ratings of the senior unsecured          Issued LC        Commitment
  Category                long-term debt of the applicable Borrower*              Margin            Margin
  --------              -----------------------------------------------        ------------      --------------
<S>                    <C>                                                      <C>                <C>
   One                 BB+ or better by S&P and Ba1 or better by Moody's          3.00%               0.75%
   Two                 BB by S&P and Ba2 by Moody's                               3.50%              0.875%
   Three               BB- by S&P and Ba3 by Moody's                              4.00%               1.00%
   Four                B+ by S&P and B1 by Moody's                                4.25%               1.25%
   Five                Below B+ by S&P or below B1 by Moody's                     4.50%               1.50%
</Table>

*If split-rated, the lower rating will apply. At all times when no senior
unsecured long-term debt of the Borrower is rated by Moody's or when no senior
unsecured long-term debt of the Borrower is rated by S&P, Rating Category five
shall apply.

<PAGE>

                                   SCHEDULE VI

                                EXISTING PROJECTS

1.       Gulfstream

2.       Cove Point

3.       Devil's Tower

4.       PIGAP II Project

<PAGE>

                                  SCHEDULE VII

                            [INTENTIONALLY OMITTED.]

<PAGE>

                                  SCHEDULE VIII

                            [INTENTIONALLY OMITTED.]

<PAGE>

                                   SCHEDULE IX

                    LIENS SECURING EXISTING DEBT/OBLIGATIONS

                  Liens existing on July 1, 2002, that secure only Debt and
other obligations incurred or committed and available for draw down on or prior
to or outstanding on July 1, 2002 and listed on Schedule IX as secured by such
Liens. See clause (r) on Schedule III.

1. Liens granted in connection with those Amended and Restated Participation
Agreements (2 separate leases) dated as of January 28, 2002, among Williams Oil
Gathering, L.L.C. and Williams Field Services - Gulf Coast Company, L.P., as
Lessees, Williams Field Services Company, as Construction Agent, TWC, as
Guarantor, First Security Bank, N.A. as Certificate Trustee, Wells Fargo Bank
nevada, N.A., as Collateral Agent, Bank of America, N.A., as Administrative
Agent and Administrator, and financial institutions named therein as Certificate
Holders, as amended, and related transaction documents.

2. Liens granted in connection with the Master Agreement dated as of March 6,
2000, among TWC, as Guarantor, Williams TravelCenters, Inc., as Lessee, Atlantic
Financial Group, Ltd., as Lessor, SunTrust Bank, as Agent, and the Lenders named
therein, as amended, and related transaction documents.

3. Liens granted in connection with the Joint Venture Sponsor Agreement dated as
of December 28, 2000, among TWC, as Sponsor and Williams Field Services Company,
in favor of Prairie Wolf Investors ("Investor"), Arctic Fox Assets, L.L.C.,
Williams Energy (Canada), Inc. and the other Indemnified Persons listed therein,
as amended, and related transaction documents.

4. Liens granted in connection with the PPH Sponsor Agreement dated as of
December 31, 2001, by TWC, as Sponsor, in favor of Piceance Production Holdings
LLC, Plowshare Investors LLC ("Investor"), and other Indemnified Persons listed
in the agreement, as amended, and related transaction documents.

5. Liens granted in connection with the Parent Support Agreement dated as of
December 23, 1998, made by TWC in favor of Castle Associates L. P. "(Castle")
and Colchester LLC ("Investor") and the other Indemnified Persons listed
therein, as amended, and related transaction documents.

6. Liens granted in connection with the Loan Agreement dated as of March 17,
1998 Pine Needle LNG Company, LLC among Pine Needle LNG Company, LLC and Central
Commercial Lending Institutions as the Lenders and Bank of Montreal as the agent
for the Lenders, and related transaction documents.

<PAGE>

7. Liens granted in connection Finance Agreement among WilPro Energy Services
(El Furrial) Limited, Overseas Private Investment Corporation dated as of
January 31, 1999, and related transaction documents.

<PAGE>

                                   SCHEDULE X

                             MIDSTREAM SUBSIDIARIES

Delaware
--------
Williams Energy Services, L.L.C.
Williams Natural Gas Liquids, Inc.
Williams Midstream Natural Gas Liquids, Inc.
Williams Express, Inc. (a Delaware corporation)
Williams Field Services Group, Inc.
Williams Alaska Pipeline Company, L.L.C.
Williams Bio-Energy, L.L.C.
Williams Merchant Services Company, Inc.
Mapco, Inc.
WFS Enterprises, Inc.
WFS-Liquids Company
Williams Field Services Company
Williams Gas Processing Company
Williams Gas Processing - Wamsutter Company
North Padre Island Spindown, Inc.
Williams Ethanol Services, Inc.
Williams Energy Marketing & Trading Company
Worthington Generation, L.L.C.
Memphis Generation, L.L.C.
Gas Supply, L.L.C.
Williams Generation Company - Hazelton
Juarez Pipeline Company
MAPL Investments, Inc.
Williams Refining & Marketing, L.L.C.
Williams Memphis Terminal, Inc.
Williams Mid-South Pipelines, L.L.C.
Williams Olefins, L.L.C.
Williams Olefins Feedstock Pipelines, L.L.C.
Williams Generating Memphis, LLC
Williams Field Services-Gulf Coast Company, L.P.
Williams Gas Pipeline Company, L.L.C.
WFS - NGL Pipeline Company Inc.
WFS - Offshore Gathering Company
Baton Rouge Fractionators, L.L.C.
Tri-States NGL Pipeline, L.L.C.
WILPRISE Pipeline Company, L.L.C.

<PAGE>

Alaska
------
Williams Express, Inc. (an Alaska corporation)
Williams Alaska Petroleum, Inc.
Williams Alaska Air Cargo Properties, L.L.C.
Williams Lynxs Alaska CargoPort, L.L.C.

Texas
-----
Black Marlin Pipeline Company
Rio Grande Pipeline Company

Kansas
------
Nebraska Energy, L.L.C.

<PAGE>

                                   SCHEDULE XI

                               PROGENY FACILITIES

$200,000,000 Parent Support Agreement dated as of December 23, 1998, made by The
Williams Companies, Inc. in favor of Castle Associates L. P. and Colchester LLC
and the other Indemnified Persons listed therein, as amended.

Amended and Restated Guarantee dated as of July 25, 2000, issued by The Williams
Companies, Inc. for the benefit of The Commonwealth Plan, Inc. and CBL Capital
Corporation, as amended. WFS-Pipeline Company, as lessee and Commonwealth, as
lessor entered into a Lease Agreement dated as of December 29, 1995.
WFS-Offshore Gathering Company, as lessee, and CBL, as lessor, entered into a
Lease Agreement dated December 29, 1995, as amended and restated.

$400,000,000 Term Loan Agreement dated as of April 7, 2000, among The Williams
Companies, Inc., as Borrower, and Credit Lyonnais New York Branch, as
Administrative Agent, and the Lenders named therein, as amended.

$192,570,931 aggregate Second Amended and Restated Participation Agreements (2
separate leases) dated as of January 28, 2002, among Williams Oil Gathering,
L.L.C. and Williams Field Services - Gulf Coast Company, L.P., as Lessees,
Williams Field Services Company, as Construction Agent, The Williams Companies,
Inc., as Guarantor, First Security Bank, N.A. as Certificate Trustee, Wells
Fargo Bank Nevada, N.A., as Collateral Agent, Bank of America, N.A., as
Administrative Agent and Administrator, and financial institutions named therein
as Certificate Holders, as amended.

$200,000,000 Term Loan Agreement dated as of January 29, 1999, among The
Williams Companies, Inc., as Borrower, and The Fuji Bank, Limited, as
Administrative Agent, and the Banks named therein, as amended.

$611,788,868 Joint Venture Sponsor Agreement dated as of December 28, 2000,
among The Williams Companies, Inc., as Sponsor and Williams Field Services
Company, in favor of Prairie Wolf Investors, Arctic Fox Assets, L.L.C., Williams
Energy (Canada), Inc. and the other Indemnified Persons listed therein, as
amended.

Letter of Credit and Reimbursement Agreement dated as of May 15, 1994, among
Tulsa Parking Authority, The Williams Companies, Inc., Bank of Oklahoma,
National Association, and Bank of America, N.A. (formerly Nationsbank of Texas,
N.A.), relative to Tulsa Parking Authority First Mortgage Revenue Bonds, as
amended.

$127,000,000 Master Agreement dated as of March 6, 2000, among The Williams
Companies, Inc., as Guarantor, Williams TravelCenters, Inc., as Lessee, Atlantic
Financial Group, Ltd., as Lessor, SunTrust Bank, as Agent, and the Lenders named
therein, as amended.

$100,000,000 PPH Sponsor Agreement dated as of December 31, 2001, by The
Williams Companies, Inc., as Sponsor, in favor of Piceance Production Holdings
LLC, Plowshare Investors LLC, and other Indemnified Persons listed in the
agreement, as amended.

Outstanding letters of credit as of July 31, 2002 (as set forth on Schedule
XIII) to the extent they have not been Cash Collateralized.

All documents, instruments, agreements, certificates and notices at any time
executed and/or delivered in connection with any of the foregoing.

<PAGE>

                                  SCHEDULE XII

                               POST-CLOSING ITEMS

                  1. Consents, Licenses and Approvals. All governmental and
third party approvals (including consents) necessary in connection with the
continuing operations of the Borrower and its Midstream Subsidiaries and the
execution, delivery and performance of the Credit Documents shall have been
obtained and be in full force and effect, and all applicable waiting periods
shall have expired without any action being taken or threatened by any competent
authority which would restrain, prevent or otherwise impose adverse conditions
on the execution and delivery of the Credit Documents or the financing thereof,
including, without limitation, this Agreement. TO BE REQUESTED 10 DAYS AFTER THE
DATE OF THIS AGREEMENT.

                  2. Legal Opinions. The Agent shall have received, with a
counterpart for each Issuing Bank, the executed legal opinions of local counsel
to the Agents in the States of Colorado, New Mexico and Wyoming, such other
states as requested by Agent which such legal opinions shall cover such matters
incident to the perfection of the Liens and the other transactions contemplated
by the Agreement as the Agent may reasonably require. TO BE DELIVERED 15 DAYS
AFTER THE DATE OF THIS AGREEMENT WITH RESPECT TO THE ABOVE LISTED STATES AND 15
DAYS AFTER THE REQUEST THEREFOR BY THE AGENT WITH RESPECT TO ANY OTHER STATE.

                  3. Actions to Perfect Liens. The Agent shall have received
properly completed and executed financing statements (or other similar
documents), including, without limitation, duly executed financing statements on
form UCC-1, necessary or, in the opinion of the Collateral Agent, desirable to
perfect the Liens created by the Security Documents, and the Collateral Agent
shall be reasonably satisfied that, other than filing such financing statements
and other similar documents and the Mortgages, no other filings, recordings,
registrations or other actions are necessary or, in the opinion of the
Collateral Agent, desirable to perfect the Liens created by the Security
Documents. TO BE COMPLETED 60 DAYS AFTER THE DATE OF THIS AGREEMENT.

                  4. Surveys. At the request of the Agent, the Agent shall have
received boundary line surveys of (i) the property leased by the Borrower and
the Midstream Subsidiaries located in the States of Alaska, Arkansas, Colorado,
New Mexico, Tennessee and Wyoming, and (ii) the real property owned by Borrower
and the Midstream Subsidiaries located in the States of Alaska, Arkansas,
Colorado, New Mexico, Tennessee and Wyoming, other than the Gathering Systems
which boundary line surveys shall in each case be (A) dated a date reasonably
close to the date of the Agreement (as determined by the Agent), (B) prepared by
an independent professional licensed land surveyor reasonably satisfactory to
the Agent, (C) prepared in a manner reasonably acceptable to the

<PAGE>

Agent and (D) shall reflect that the buildings, structures and other
improvements necessary for the ownership and operation of the processing plants
purported to be located on the property surveyed do not protrude on any
adjoining property nor do any improvements located on land adjacent to the
property surveyed encroach upon the property surveyed, which encroachments or
protrusions in either case could reasonably be expected to adversely affect the
ability of the Borrower or the Midstream Subsidiaries to own, maintain, operate
or sell the property surveyed and/or the improvements located thereon. The Agent
shall have received a certificate of an authorized officer of the Borrower
certifying said boundary line surveys are true and correct as of the date of the
Agreement. TO BE COMPLETED 60 DAYS AFTER REQUEST BY THE AGENT THEREFOR.

                  5. Flood Insurance. If requested by the Agent, the Agent shall
have received a policy of flood insurance in form and substance satisfactory to
the Agent. TO BE COMPLETED 60 DAYS AFTER THE DATE OF THIS AGREEMENT.

                  6. Copies of Documents. If requested by the Agent, the Agent
shall have received a copy, certified by such parties as the Agent may deem
appropriate, of any document burdening the property covered by any Mortgage. TO
BE COMPLETED 30 DAYS AFTER THE DATE OF THIS AGREEMENT.

                  7. Lien Searches. The Agent shall have received the results of
recent lien searches by Persons reasonably satisfactory to the Agent, in each of
the jurisdictions and offices where assets of the Borrower or any of the
Midstream Subsidiaries are located or recorded, and such searches shall reveal
no Liens on any assets of the Borrower or any such Subsidiary, except for (i)
Liens permitted by the Agreement and (ii) Liens to be released or assigned to
the Agent, for the ratable benefit of the Banks, on the date of the Agreement in
connection with the execution, delivery and performance of the Credit Documents.
TO BE COMPLETED 30 DAYS AFTER THE DATE OF THIS AGREEMENT.

                  8. Insurance. The Agent shall have received (i) copies of, or
an insurance broker's or agent's certificate as to coverage under, the insurance
policies required by the Agreement and the applicable provisions of the Security
Documents, each of which policies shall be endorsed or otherwise amended to
include a "standard" or "New York" lender's loss payable endorsement and to name
the Agent as additional insured, in form and substance satisfactory to the
Collateral Agent and (ii) confirmation from such insurance broker that the scope
and amount of coverage maintained by the Borrower and its Subsidiaries are
comparable to the scope and amount of the insurance maintained by other
companies of similar size in the same industry and general location. TO BE
COMPLETED 30 DAYS AFTER THE DATE OF THIS AGREEMENT.

<PAGE>

                  9. Solvency. If requested by the Agent, the Agent shall have
received (i) a satisfactory solvency opinion from an independent valuation firm
satisfactory to the Issuing Banks which shall document the solvency of the
Borrower and its Subsidiaries, on a consolidated basis, after giving effect to
the execution, delivery and performance of the Credit Documents, the other
transactions contemplated thereby and the extensions of credit contemplated
hereby and (ii) a certificate from the chief financial officer of the Borrower
(in his capacity as chief financial officer) as to the solvency of each of the
Borrower and its Subsidiaries, on a consolidated basis, after giving effect to
the execution, delivery and performance of the Credit Documents, the other
transactions contemplated hereby and the extensions of credit contemplated
hereunder. TO BE COMPLETED 60 DAYS AFTER THE DATE OF THIS AGREEMENT.

                  10. Environmental Reports. If requested by the Agent, the
Agent shall have received environmental assessment reports from E.vironment,
Inc. with respect to processing, refining and other facilities and other parcels
of real property owned or leased by the Borrower and the Midstream Subsidiaries,
and the Issuing Banks shall be reasonably satisfied with the potential
environmental liabilities to which the Borrower and its Subsidiaries may be
subject based on such reports. TO BE COMPLETED 60 DAYS AFTER THE DATE OF THIS
AGREEMENT.

                  11. Title Vested in Borrower. The Agent and the Issuing Banks
shall be reasonably satisfied that all filings and other actions required to be
taken or made in order to vest title to all of the Properties of the Borrower
and the Midstream Subsidiaries shall have been taken or made and are in full
force and effect. TO BE COMPLETED 60 DAYS AFTER THE DATE OF THIS AGREEMENT.

                  12. Mortgages. The Collateral Agent shall receive, on or
before August 9, 2002, evidence of the completion of all recordings and filings
of each initial Mortgage (which "initial" Mortgages consist of Mortgages filed
in Colorado, Wyoming and New Mexico) as may be necessary, in the opinion of the
Collateral Agent, to perfect the Liens in favor of the Collateral Agent created
by such Mortgages. Thereafter, the Collateral Agent shall receive, within
fifteen Business Days of the delivery of any additional Mortgage to the
Borrower, evidence of such recordings and filings as may be necessary, in the
opinion of the Collateral Agent, to perfect the Liens in favor of the Collateral
Agent created by such additional Mortgage. Upon the request of Collateral Agent,
the Borrower shall provide all assistance as may be necessary in connection with
the preparation of the Mortgages.

                  13. Consents to the Pledging of Excluded Equity Interest. The
Company shall use its best efforts to obtain all third party consents necessary
to pledge the Excluded Equity Interests (other than the Equity Interest in
Williams Mobile Bay Producer Services, L.L.C. and the Equity Interest of
Williams Energy Partners L.P. held by Williams GP LLC) pursuant to the Pledge
Agreement. TO BE REQUESTED 30

<PAGE>

DAYS AFTER THE DATE OF THIS AGREEMENT AND TO BE PURSUED DILIGENTLY THEREAFTER.

                  14. Additional Matters. All corporate and other proceedings,
and all documents, instruments and other legal matters in connection with the
transactions contemplated by this Agreement and the other Credit Documents shall
be satisfactory in form and substance to the Administrative Agent, and the
Administrative Agent shall have received such other documents and legal opinions
in respect of any aspect or consequence of the transactions contemplated hereby
or thereby as it shall reasonably request.

                                                                       EXHIBIT A
                                                                              TO
                                                                CREDIT AGREEMENT

                         OPINION OF WILLIAM G. VON GLAHN

<PAGE>

                                                                     EXHIBIT B-1
                                                                              TO
                                                                CREDIT AGREEMENT

               OPINION OF SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
                                (ENFORCEABILITY)

<PAGE>

                                                                     EXHIBIT B-2
                                                                              TO
                                                                CREDIT AGREEMENT

               OPINION OF SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
                                  (PERFECTION)

<PAGE>

                                                                       EXHIBIT C
                                                                              TO
                                                                CREDIT AGREEMENT

               EXISTING LOANS AND INVESTMENTS IN WGC SUBSIDIARIES

<Table>
<Caption>
                                  TWC CONTINUING CONTRACTS TO WHICH WCG IS A PARTY
                                  ------------------------------------------------
                      AGREEMENT                        DATE                    PARTIES
                      ---------                        ----                    -------
<S>                                                    <C>                     <C>
Amended and Restated Administrative Services
Agreement but excluding all Service
Level Agreements included therein other
than those listed below

                                                       23-Apr-01               TWC and WCG
   Amended and Restated Administrative Services
   Agreement -- Cafeteria Card (SLA No. ASF-11)

   Amended and Restated Administrative Services
   Agreement -- Catering Services (SLA No. ASF-3)

   Amended and Restated Administrative Services
   Agreement -- Data Center Floor Space (SLA No.
   IT-23)

   Amended and Restated Administrative Services
   Agreement -- Security System Administration  (SLA
   No. ASR-2)

   Amended and Restated Administrative Services
   Agreement -- Telecommunications Support (PBX)
   (SLA No. IT-19)

   Amended and Restated Administrative Services
   Agreement -- Warren Clinic (SLA No. HR-17)

   Amended and Restated Administrative Services
   Agreement -- Records Management (Revised) (SLA
   No. ASF-9)

Amended and Restated Confidentiality and               1-Feb-02                TWC and WCG
Nondisclosure Agreement

Amended and Restated Cross-License Agreement           23-Apr-01               TWC and WCG

Amended and Restated Employee Benefits Agreement       23-Apr-01               TWC and WCG

Amended and Restated Separation Agreement              23-Apr-01               TWC and WCG

Amendment of State of Oklahoma OIC Agreement           23-Apr-01               TWC and WCG

ITWill Assignment and Assumption Agreement             23-Apr-01               TWC and WCG

Mutual Waiver, dated April 23, 2001                    23-Apr-01               TWC and WCG

Professional Services Agreement                        23-Apr-01               TWC, WCG, The Feinberg Group, LLP

Relocation Services Agreement                          2-Jan-02                Williams Relocation Management, Inc.
                                                                               (a TWC subsidiary) and WCG

Restructuring Support Agreement                        23-Feb-02               TWC and WCG

Shareholder Agreement                                  23-Apr-01               TWC and WCG

Trademark License Agreement                            23-Apr-01               TWC and WCG

All agreements and exhibits related to or incorporated by the foregoing that
were entered into to implement the transactions contemplated thereby, e.g.
Assignment and Assumption Agreements, Bills of Sale.
</Table>

<PAGE>

<Table>
<Caption>
                                TWC CONTINUING CONTRACTS TO WHICH WCG IS NOT A PARTY
                                ----------------------------------------------------
                     AGREEMENT                                DATE                            PARTIES
                     ---------                                ----                            --------
<S>                                                  <C>                      <C>
Agreement Of Purchase And Sale And Construction      26-Feb-01 (as amended    Williams Headquarters Building Company
Completion                                           13-Mar-01,               and WCL
                                                     13-April-01,
                                                     13-Sep-01, 30-Apr-02

Agreement To Terminate Aircraft Dry Lease -- N352WC  27-Mar-02                Williams Aircraft Leasing, LLC (a TWC
                                                                              subsidiary) and WCL

Aircraft Dry Lease -- N358WC                         13-Sep-01                Williams Communications Aircraft, LLC
                                                                              (a TWC subsidiary) and WCL

Aircraft Dry Lease -- N359WC                         13-Sep-01                Williams Communications Aircraft, LLC
                                                                              (a TWC subsidiary) and WCL

Bank of Oklahoma Tower Use Agreement                 23-Apr-01                Williams Headquarters Building Company
                                                                              and WCL

Central Plant Lease Agreement                        23-Apr-01 (as amended    Williams Headquarters Building Company
                                                     13-Sep-01)               and Williams Technology Center, LLC (a
                                                                              WCL subsidiary)

Construction, Operating and Maintenance Agreement    1-Jan-97 (as amended     Transcontinental Gas Pipe Line
                                                     19-Feb-99)               Corporation (a TWC subsidiary) and WCL

Consulting Services Agreement                        29-Oct-01                Williams Pipe Line Company (a TWC
                                                                              subsidiary) and WCL

Co-Occupancy Agreement                               18-Feb-99                Northwest Pipeline Corporation (a TWC
                                                                              subsidiary) and WCL

Co-Occupancy Agreement                               22-Feb-99                Williams Gas Pipelines Central, Inc.
                                                                              (a TWC subsidiary) and WCL

Co-Occupancy Agreement                               1-May-00                 Williams Pipe Line Company (a TWC
                                                                              subsidiary) and WCL

Co-Occupancy Agreement                               5-Mar-99 (as amended     Mid-America Pipeline Company (a TWC
                                                     23-Apr-01)               subsidiary) and WCL

Co-Occupancy Agreement                               5-Mar-99 (as amended     Williams Field Services Company (a TWC
                                                     23-Apr-01)               subsidiary) and WCL

Dark Fiber IRU Agreement                             26-Feb-01                Transcontinental Gas Pipe Line
                                                                              Corporation (a TWC Subsidiary) and WCL

Fairfax Terminal Station Site Lease                  26-Aug-96                Williams Pipe Line Company (a TWC
                                                                              subsidiary) and WCL

First Amendment to Level 3 Sublease Agreement        1-Jan-99 (as amended     TWC and WCL
                                                     31-Dec-00 and assigned
                                                     23-Apr-01)
</Table>

                                       2
<PAGE>

<Table>
<Caption>
                     AGREEMENT                                DATE                            PARTIES
                     ---------                                ----                            -------
<S>                                                  <C>                      <C>
Lease Agreement                                      1-Jan-97                 Williams Natural Gas Company (a TWC
                                                                              subsidiary now known as Williams Gas
                                                                              Pipelines Central, Inc.) and WCL

Lease Agreement                                      1-Sep-95                 Transcontinental Gas Pipe Line
                                                                              Corporation (a TWC subsidiary) and WCL

Lease Agreement                                      1-Mar-97                 Texas Gas Transmission Corporation and
                                                                              WCL

Management Services Agreement                        23-Apr-01 (as amended    Williams Headquarters Building Company
                                                     13-Sep-01)               and Williams Technology Center, LLC (a
                                                                              WCL subsidiary)

Master Agreement                                     23-Feb-99 (as amended    Williams Pipe Line Company (a TWC
                                                     23-Apr-01)               subsidiary) and WCL

Nondisclosure Agreement                              29-Oct-01                TWC and WCL

Northwest Plaza Level Amended and Restated Lease     1-Jan-99 (as amended     Original Amended and Restated Lease
Agreement                                            31-Dec-00)               Agreement between Williams

                                                                              Headquarters Building Company,
                                                                              Landlord, and WCL, Tenant;
                                                                              amendment between TWC,
                                                                              Sublessor, and WCG, Sublessee

Operation, Maintenance and Repair Agreement          19-Feb-99 (as amended    Mid-America Pipeline Company,
                                                     31-Aug-99)               Northwest Pipeline Corporation, Texas
                                                                              Gas Transmission Corporation,
                                                                              Transcontinental Gas Pipe Line
                                                                              Corporation, Williams Field Services
                                                                              Company, Williams Gas Pipelines
                                                                              Central, Inc. and Williams Pipe Line
                                                                              Company and WCL

Partial Assignment and Assumption Agreement          26-Feb-01                Williams Headquarters Building Company
                                                                              and Williams Technology Center, LLC (a
                                                                              WCL subsidiary)

Sale Agreement                                       14-Feb-97                Williams Pipe Line Company (a TWC
                                                                              subsidiary) and WCL

Southwest Plaza Level Amended and Restated Lease     1-Jan-99                 Williams Headquarters Building Company
Agreement                                                                     and WCL

Sublease Agreement                                   1-May-00                 Williams Pipe Line Company (a TWC
                                                                              subsidiary) and WCG; WCG assigned its
                                                                              rights to WCL on 2-Apr-02

Technical Services Agreement                         1998                     Spectrum Network Systems Limited (now
                                                                              known as PowerTel Limited, a 45% WCG
                                                                              subsidiary) and Williams International
                                                                              Services Company (a TWC subsidiary)

Teleport Services Agreement                          9-Oct-01                 Williams Energy Marketing & Trading
                                                                              co. (a TWC subsidiary and WCL

The Depot Amended and Restated Lease Agreement       1-Jan-99 (as amended     Williams Headquarters Building Company
                                                     31-Dec-00 and assigned   and WCL
                                                     23-Apr-01)

TWC Corporate Guarantee                              23-Apr-01                TWC guaranteed a TWC subsidiary in
                                                                              favor of a WCL subsidiary

TWC Corporate Guarantee                              23-Apr-01                TWC guaranteed a TWC subsidiary in
</Table>

                                       3
<PAGE>
<Table>
<S>                                                  <C>                      <C>

                                                                              favor of a WCL subsidiary

TWC Guaranty                                         23-Apr-01                TWC guaranteed a TWC subsidiary in
                                                                              favor of a WCL subsidiary

User Agreement for Pipe                              5-Mar-99 (as amended     Williams Pipe Line Company (a TWC
                                                     23-Apr-01)               subsidiary) and WCL

Utility Service Agreement                            23-Apr-01 (as amended    Williams Headquarters Building Company
                                                     13-Sep-01)               and Williams Technology Center, LLC (a
                                                                              WCL subsidiary)

Web Hosting and Streaming Services Agreement         2-Oct-00                 Williams Energy Services, Inc. (a TWC
                                                                              subsidiary) and WCL

Weld County Sublease Agreement                       19-Apr-96                Williams Natural Gas Company (a TWC
                                                                              subsidiary) and WCL

All agreement and exhibits related to or incorporated by the foregoing that were
entered into to implement the transactions contemplated thereby, e.g. Assignment
and Assumption Agreements, Bills of Sale.
</Table>

                                       4

<PAGE>

                                                                       EXHIBIT D
                                                                              TO
                                                                CREDIT AGREEMENT

                           FORM OF TRANSFER AGREEMENT

                             Dated __________, 20__

                  Reference is made to the Credit Agreement, dated as of July
31, 2002 (such Credit Agreement, as amended or otherwise modified from time to
time, being herein referred to as the "Credit Agreement"), among The Williams
Companies, Inc., as Borrower, Citicorp USA, Inc., as Agent and Collateral Agent
for the Banks, Bank of America N.A., as Syndication Agent, the Banks and Issuing
Banks parties thereto and Salomon Smith Barney Inc., as Arranger. Terms defined
in the Credit Agreement are used herein with the same meaning.

                  _________________________ (the "Assignor") and
__________________ (the "Assignee") agree as follows:

                  1. The Assignor hereby sells and assigns to the Assignee,
         without recourse, and the Assignee hereby purchases and assumes from
         the Assignor, an interest in and to all of the Assignor's rights and
         obligations under the Credit Agreement and the other Credit Documents
         executed in connection therewith as of the date hereof equal to the
         percentage interest specified on Schedule 1 hereto of all outstanding
         rights and obligations under the Credit Agreement. After giving effect
         to such sale and assignment, the Assignee's and Assignor's respective
         Letter of Credit Commitments and LC Participation Percentage will be as
         set forth in Schedule 1.

                  2. The Assignor (i) represents and warrants that it is the
         legal and beneficial owner of the interest being assigned by it
         hereunder and that such interest is free and clear of any adverse
         claim; (ii) makes no representation or warranty and assumes no
         responsibility with respect to any statements, warranties or
         representations made in or in connection with the Credit Agreement, the
         other Credit Documents or other instrument or document furnished
         pursuant thereto or in connection therewith, the perfection, existence,
         sufficiency or value of any Collateral, guaranty or insurance or the
         execution, legality, validity, enforceability, genuineness, sufficiency
         or value of the Credit Agreement, any of the other Credit Documents or
         any other instrument or document furnished pursuant thereto or in
         connection therewith; and (iii) makes no representation or warranty and
         assumes no responsibility with respect to the financial condition of
         the Borrower or any other Person or the performance or observance by
         the Borrower or any other Person of any of its respective obligations
         under the Credit Agreement, the other Credit Documents or any other
         instrument or document furnished pursuant thereto or in connection
         therewith.

                  3. The Assignee (i) confirms that it has received a copy of
         the Credit Agreement, together with copies of the financial statements
         referred to in Section 4.1(e) of the Credit Agreement and such other
         documents and information as it has deemed appropriate to make its own
         credit analysis and decision to enter into this Transfer

                                       5
<PAGE>

         Agreement; (ii) agrees that it will, independently and without reliance
         upon the Agent, the Collateral Agent, any Issuing Bank, the Assignor or
         any other Bank 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 the Credit Agreement, any other
         Credit Document, or any other instrument or document; (iii) confirms
         that it is an Eligible Assignee; (iv) appoints and authorizes the Agent
         to 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; (v) agrees that it will perform in
         accordance with their terms all of the obligations which by the terms
         of the Credit Agreement are required to be performed by it as a Bank;
         and (vi) specifies as its Lending Office (and address for notices) the
         office set forth beneath its name on the signature pages hereof.

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

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

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

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

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

                                       6
<PAGE>

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

                                       7
<PAGE>

                                   Schedule 1
                                       to
                               Transfer Agreement

<Table>
<S>                                                                                          <C>
Section 1.
---------
LC Participation Percentage interest assigned:                                               ____________%
Assignee's LC Participation Percentage interest before giving effect to this
Transfer Agreement:                                                                          ____________%
Assignee's LC Participation Percentage interest after giving effect to this
Transfer Agreement:                                                                          ____________%
Assignor's remaining LC Participation Percentage interest after
giving effect to this Transfer Agreement:                                                    ____________%

Section 2.
---------
Letter of Credit Commitment interest assigned:                                              $_____________
Assignee's Letter of Credit Commitment before giving effect to this
Transfer Agreement:                                                                         $_____________
Assignee's Letter of Credit Commitment after giving effect to this
Transfer Agreement:                                                                         $_____________
Assignor's remaining Letter of Credit Commitment after
giving effect to this Transfer Agreement:                                                   $_____________

Section 3.
---------
Effective Date: _____________________, 20____
</Table>

                               [NAME OF ASSIGNOR], as Assignor

                                        By:
                                             -----------------------------------
                                        Name:
                                        Title:
                                        Dated:

                               [NAME OF ASSIGNEE], as Assignee

                                        By:
                                             -----------------------------------
                                        Name:
                                        Title:
                                        Dated:

                               Lending Office (and address for notices):

                               [Address]

<PAGE>

[Approved this ___ day of ______, _______

THE WILLIAMS COMPANIES, INC.

By:
   -----------------------------------------
Name:
Title:]

[Approved this ___ day of ______, _______

[NAME OF [ISSUING BANK][BANK]], as [Issuing Bank][Bank]

By:
   -----------------------------------------
Name:
Title:]

[Approved this ___ day of ______, _______

CITICORP USA, INC., as Agent

By:
   -----------------------------------------
Name:
Title:]

                                       2

<PAGE>

                                                                       EXHIBIT E
                                                                              TO
                                                                CREDIT AGREEMENT

                       FORM OF NOTICE OF LETTER OF CREDIT

                                                                          [Date]

Citicorp USA, Inc., as Agent
for the Banks parties to the Credit
Agreement referred to below
399 Park Avenue
New York, New York 10043

         Attention:  Williams Account Officer

Ladies and Gentlemen:

The undersigned, The Williams Companies, Inc. (the "Borrower"), (a) refers to
that certain Credit Agreement, dated as of July 31, 2002 (as amended or
otherwise modified from time to time, the "Credit Agreement"; the terms defined
therein and not defined herein being used herein as therein defined), among The
Williams Companies, Inc., as Borrower, Citicorp USA, Inc., as Agent and
Collateral Agent for the Banks, Bank of America N.A., as Syndication Agent, the
Banks and Issuing Banks parties thereto and Salomon Smith Barney Inc., as
Arranger; (b) hereby gives you notice, irrevocably, pursuant to Section 2.10 of
the Credit Agreement that the undersigned hereby requests you to issue an
irrevocable standby Letter of Credit as set forth below in such language as you
may deem appropriate and (c) in that connection sets forth below the information
relating to such standby Letter of Credit (the "Standby Letter of Credit") as
required by Section 2.10 of the Credit Agreement:

         (i)      The Business Day upon which the Standby Letter of Credit will
                  be issued is ______________, 20____ (the "Issuance Date").

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

         (iii)    Attached hereto as Exhibit A are the proposed terms of the
                  Standby Letter of Credit (including the beneficiary thereof
                  and the nature of the transactions or obligations proposed to
                  be supported thereby).

                  The undersigned hereby certifies that the following statements
are true on the date hereof, and will be true on the Issuance Date:

         (a)      the representations and warranties contained in Section 4.1 of
                  the Credit Agreement are correct on and as of the Issuance
                  Date, before and after the issuance of the Standby Letter of
                  Credit, as though made on and as of such date;

                                       3
<PAGE>

         (b)      no event has occurred and is continuing, or would result from
                  the issuance of the Standby Letter of Credit, which
                  constitutes a Default or Event of Default;

         (c)      after giving effect to the Standby Letter of Credit and all
                  Letters of Credit which have been requested on or prior to the
                  date hereof but which have not been made or issued prior to
                  the date hereof, the sum of the aggregate principal amount of
                  all Letter of Credit Liabilities will not exceed the aggregate
                  of the Letter of Credit Commitments; and

         (d)      after giving effect to the Standby Letter of Credit and all
                  Letters of Credit issued on or prior to the date hereof, the
                  sum of the aggregate principal amount of all Letters of Credit
                  issued by the Issuing Bank to which this issuance request is
                  being made will not exceed the aggregate of the Letter of
                  Credit Commitments of such Issuing Bank.

                                        Very truly yours,

                                        THE WILLIAMS COMPANIES, INC.

                                        By:
                                           ------------------------------------
                                        Name:
                                             ----------------------------------
                                        Title:
                                              ---------------------------------

cc:      Citicorp North America, Inc.
         1200 Smith Street, Suite 2000
         Houston, Texas 77002
         Attn:    The Williams Companies, Inc.
                  Account Officer

         [Issuing Bank]

<PAGE>

                                                                       EXHIBIT F
                                                                              TO
                                                                CREDIT AGREEMENT

                           FORM OF SECURITY AGREEMENT

<PAGE>

                                                                       EXHIBIT G
                                                                              TO
                                                                CREDIT AGREEMENT

                              FORM OF LLC GUARANTY

                                       6
<PAGE>

                                                                       EXHIBIT H
                                                                              TO
                                                                CREDIT AGREEMENT

                           FORM OF MIDSTREAM GUARANTY

                                       7
<PAGE>

                                                                       EXHIBIT I
                                                                              TO
                                                                CREDIT AGREEMENT

                            FORM OF PLEDGE AGREEMENT

                                       8

<PAGE>

                                                                       EXHIBIT J
                                                                              TO
                                                                CREDIT AGREEMENT

                            FORM OF HOLDINGS GUARANTY

                                       9

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