Document:

exv4w1

 

 

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

and

JPMORGAN CHASE BANK, N.A., as Trustee

 

INDENTURE

Dated as of April 11, 2006

6.40% Senior Notes due 2016

 

 

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	TIA Section	 	Indenture Section	 
	310 (a)(1)
	 	 	6.10	 
	(a)(2)
	 	 	6.10	 
	(a)(3)
	 	 	N.A.	 
	(a)(4)
	 	 	N.A.	 
	(a)(5)
	 	 	6.10	 
	(b)
	 	 	6.10; 7.01	(b)
	(c)
	 	 	N.A.	 
	311 (a)
	 	 	6.11	 
	(b)
	 	 	6.11	 
	(c)
	 	 	N.A.	 
	312 (a)
	 	 	2.05	 
	(b)
	 	 	10.03	 
	(c)
	 	 	10.03	 
	313 (a)
	 	 	6.06	 
	(b)
	 	 	6.06	 
	(c)
	 	 	6.06	 
	(d)
	 	 	6.06	 
	314 (a)
	 	 	3.03	 
	(b)
	 	 	N.A.	 
	(c)(1)
	 	 	10.04	 
	(c)(2)
	 	 	10.04	 
	(c)(3)
	 	 	N.A.	 
	(d)
	 	 	N.A.	 
	(e)
	 	 	10.05	 
	(f)
	 	 	N.A.	 
	315 (a)
	 	 	6.01	(b)
	(b)
	 	 	6.05	 
	(c)
	 	 	6.01	(a)
	(d)
	 	 	6.01	(c)
	(e)
	 	 	5.11	 
	316 (a)(last sentence)
	 	 	2.09	 
	(a)(1)(A)
	 	 	5.05	 
	(a)(1)(B)
	 	 	5.04	 
	(a)(2)
	 	 	N.A.	 
	(b)
	 	 	5.07	 
	(c)
	 	 	8.04	 
	317 (a)(1)
	 	 	5.08	 
	(a)(2)
	 	 	5.09	 
	(b)
	 	 	2.04	 
	318 (a)
	 	 	9.01	 
	318 (c)
	 	 	9.01	 

 

			
	N.A.	 	means not applicable
	 
	*	 	This Cross-Reference Table is not part of this Indenture

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE1
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01
	 	Definitions	 	 	1	 
	Section 1.02
	 	Other Definitions	 	 	6	 
	Section 1.03
	 	Incorporation by Reference of Trust Indenture Act	 	 	6	 
	Section 1.04
	 	Rules of Construction	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 	 	 
	THE SECURITIES
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01
	 	Form and Dating	 	 	7	 
	Section 2.02
	 	Execution and Authentication	 	 	9	 
	Section 2.03
	 	Registrar and Paying Agent	 	 	9	 
	Section 2.04
	 	Paying Agent to Hold Money in Trust	 	 	10	 
	Section 2.05
	 	Holder Lists	 	 	10	 
	Section 2.06
	 	Transfer and Exchange	 	 	10	 
	Section 2.07
	 	Certificated Securities	 	 	14	 
	Section 2.08
	 	Replacement Securities	 	 	15	 
	Section 2.09
	 	Outstanding Securities	 	 	16	 
	Section 2.10
	 	Treasury Securities	 	 	16	 
	Section 2.11
	 	Temporary Securities	 	 	16	 
	Section 2.12
	 	Cancellation	 	 	16	 
	Section 2.13
	 	Defaulted Interest	 	 	17	 
	Section 2.14
	 	Persons Deemed Owners	 	 	17	 
	Section 2.15
	 	CUSIP Numbers	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01
	 	Payment of Securities	 	 	17	 
	Section 3.02
	 	Maintenance of Office or Agency	 	 	18	 
	Section 3.03
	 	SEC Reports; Financial Statements	 	 	19	 
	Section 3.04
	 	Compliance Certificate	 	 	19	 
	Section 3.05
	 	Limitation on Liens	 	 	20	 
	Section 3.06
	 	Limitation on Sale and Leaseback Transactions	 	 	23	 

i

 

	 	 	 	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 	 	 
	CONSOLIDATION, MERGER AND SALE
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01
	 	Limitation on Mergers and Consolidations	 	 	24	 
	Section 4.02
	 	Successors Substituted	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 	 	 
	DEFAULTS AND REMEDIES
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01
	 	Events of Default	 	 	25	 
	Section 5.02
	 	Acceleration	 	 	26	 
	Section 5.03
	 	Other Remedies	 	 	27	 
	Section 5.04
	 	Waiver of Existing Defaults	 	 	28	 
	Section 5.05
	 	Control by Majority	 	 	28	 
	Section 5.06
	 	Limitations on Suits	 	 	28	 
	Section 5.07
	 	Rights of Holders to Receive Payment	 	 	29	 
	Section 5.08
	 	Collection Suit by Trustee	 	 	29	 
	Section 5.09
	 	Trustee May File Proofs of Claim	 	 	29	 
	Section 5.10
	 	Priorities	 	 	30	 
	Section 5.11
	 	Undertaking for Costs	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 	 	 
	TRUSTEE
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01
	 	Duties of Trustee	 	 	30	 
	Section 6.02
	 	Rights of Trustee	 	 	31	 
	Section 6.03
	 	Individual Rights of Trustee	 	 	33	 
	Section 6.04
	 	Trustee’s Disclaimer	 	 	33	 
	Section 6.05
	 	Notice of Defaults	 	 	33	 
	Section 6.06
	 	Reports by Trustee to Holders	 	 	33	 
	Section 6.07
	 	Compensation and Indemnity	 	 	33	 
	Section 6.08
	 	Replacement of Trustee	 	 	34	 
	Section 6.09
	 	Successor Trustee by Merger, etc.	 	 	35	 
	Section 6.10
	 	Eligibility; Disqualification	 	 	35	 
	Section 6.11
	 	Preferential Collection of Claims Against Company	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 	 	 
	DISCHARGE OF INDENTURE
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.01
	 	Termination of Company’s Obligations	 	 	36	 
	Section 7.02
	 	Application of Trust Money	 	 	39	 
	Section 7.03
	 	Repayment to Company	 	 	39	 
	Section 7.04
	 	Reinstatement	 	 	39	 

ii

 

	 	 	 	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 	 	 
	AMENDMENTS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.01
	 	Without Consent of Holders	 	 	39	 
	Section 8.02
	 	With Consent of Holders	 	 	40	 
	Section 8.03
	 	Compliance with Trust Indenture Act	 	 	41	 
	Section 8.04
	 	Revocation and Effect of Consents	 	 	42	 
	Section 8.05
	 	Notation on or Exchange of Securities	 	 	42	 
	Section 8.06
	 	Trustee to Sign Amendments, etc.	 	 	42	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 	 	 
	REDEMPTION
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.01
	 	Notices to Trustee	 	 	43	 
	Section 9.02
	 	Selection of Securities to be Redeemed	 	 	43	 
	Section 9.03
	 	Notices to Holders	 	 	43	 
	Section 9.04
	 	Effect of Notices of Redemption	 	 	44	 
	Section 9.05
	 	Deposit of Redemption Price	 	 	44	 
	Section 9.06
	 	Securities Redeemed in Part	 	 	45	 
	Section 9.07
	 	Optional Redemption	 	 	45	 
	 
	 	 	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.01
	 	Trust Indenture Act Controls	 	 	45	 
	Section 10.02
	 	Notices	 	 	45	 
	Section 10.03
	 	Communication by Holders with Other Holders	 	 	46	 
	Section 10.04
	 	Certificate and Opinion as to Conditions Precedent	 	 	46	 
	Section 10.05
	 	Statements Required in Certificate or Opinion	 	 	47	 
	Section 10.06
	 	Rules by Trustee and Agents	 	 	47	 
	Section 10.07
	 	Legal Holidays	 	 	47	 
	Section 10.08
	 	No Recourse Against Others	 	 	47	 
	Section 10.09
	 	Governing Law	 	 	48	 
	Section 10.10
	 	No Adverse Interpretation of Other Agreements	 	 	48	 
	Section 10.11
	 	Successors	 	 	48	 
	Section 10.12
	 	Severability	 	 	48	 
	Section 10.13
	 	Counterpart Originals	 	 	48	 
	Section 10.14
	 	Table of Contents, Headings, etc.	 	 	48	 

iii

 

     INDENTURE dated as of April 11, 2006 between Transcontinental Gas Pipe Line
Corporation, a Delaware corporation (the “Company”), and JPMorgan Chase Bank, N.A., as trustee (the
“Trustee”).

     Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Company’s 6.40% Senior Notes due 2016 (the “Securities”).

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01 Definitions.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by, or under direct or indirect common control with, such specified Person. For
purposes of this definition, “control” of a Person shall mean the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms “controlling” and “controlled” shall have
meanings correlative to the foregoing. The Trustee may request and may conclusively rely upon an
Officers’ Certificate to determine whether any Person is an Affiliate of any specified Person.

     “Agent” means any Registrar or Paying Agent.

     “Attributable Debt” means, with respect to any Sale and Leaseback Transaction as of any
particular time, the present value 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 the Company, be extended).

     “Bankruptcy Law” means Title 11, U.S. Code or any similar federal, state or foreign law for
the relief of debtors.

     “Board of Directors” of any Person means the board of directors of such Person or any
committee thereof duly authorized, with respect to any particular matter, to act by or on behalf of
the board of directors of such Person.

     “Business Day” means any day that is not a Legal Holiday.

     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor corporation shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor corporation.

     “Consolidated Net Tangible Assets” means the total assets of the Company and its consolidated
Subsidiaries, less:

1

 

     (1) all current liabilities (excluding (A) any current liabilities that by their terms
are extendable or renewable at the option of the obligor thereon to a time more than 12
months after the time as of which the amount thereof is being computed, and (B) current
maturities of long-term debt); and

     (2) the value (net of any applicable reserves) of all goodwill, trade names,
trademarks, patents, and other like intangible assets,

all as set forth, or as on a pro forma basis would be set forth, on a consolidated balance sheet of
the Company and its consolidated Subsidiaries for the Company’s most recently completed fiscal
quarter, prepared in accordance with GAAP.

     “Corporate Trust Office of the Trustee” means the office of the Trustee at which the corporate
trust business of the Trustee shall be principally administered, which office shall initially be
located at the address of the Trustee specified in Section 10.02 hereof and may be located at such
other address as the Trustee may give notice to the Company and the Holders or such other address
as a successor Trustee may designate from time to time by notice to the Holders and the Company.

     “Credit Agreement” means that certain Amended and Restated Credit Agreement dated as of May
20, 2005 among The Williams Companies, Inc., Northwest Pipeline Corporation, the Company and
Williams Partners L.P., as Borrowers, Citibank, N.A. and Bank of America, N.A., as Issuing Banks,
Citicorp USA, Inc., as Administrative Agent, and the other lenders party thereto, including in each
case any related notes, guarantees, collateral documents, instruments, and agreements executed in
connection therewith, and in each case as amended, restated, modified, renewed, refunded, replaced,
or refinanced from time to time.

     “Credit Facilities” means, one or more debt facilities (including, without limitation, (1) the
Credit Agreement and (2) one or more Permitted Receivables Financings) or commercial paper
facilities, in each case with banks or other institutional lenders, or pursuant to intercompany
loan or advance arrangements with Williams and/or Williams Gas Pipeline Company, LLC (provided that
in the case of such arrangements with Williams and/or Williams Gas Pipeline Company, LLC that such
arrangements are on terms consistent with practices in existence on the date of this Indenture)
providing for revolving credit loans, term loans, receivables financing (including through the sale
of receivables to such lenders or to special purpose entities formed to borrow from such lenders
against such receivables) or letters of credit, in each case, as amended, restated, modified,
renewed, refunded, replaced or refinanced in whole or in part from time to time.

     “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

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

     “Depositary” means The Depository Trust Company, its nominees and their respective successors.

2

 

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor
statute.

     “Exchange Notes” means any securities of the Company evidencing indebtedness originally
evidenced by and containing terms identical to the Securities that are initially issued under the
Indenture on the Initial Issue Date (except that such Exchange Notes shall be registered under the
Securities Act, and except that such Exchange Notes will not contain terms with respect to
Additional Interest or transfer restrictions) and exchanged for such Securities pursuant to the
Registration Rights Agreement and this Indenture in accordance with Section 2.02.

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

     “Hedging Obligations” means, with respect to any specified Person, the obligations of such
Person incurred in the normal course of business and consistent with past practices and not for
speculative purposes under:

     (1) interest rate swap agreements, interest rate cap agreements and interest rate
collar agreements;

     (2) foreign exchange contracts and currency protection agreements entered into with one
of more financial institutions designed to protect the person or entity entering into the
agreement against fluctuations in interest rates or currency exchanges rates with respect to
Indebtedness incurred and not for purposes of speculation;

     (3) any commodity futures contract, commodity option or other similar agreement or
arrangement designed to protect against fluctuations in the price of commodities used by
that entity at the time; and

     (4) other agreements or arrangements designed to protect such person against
fluctuations in interest rates or currency exchange rates.

     “Holder” means a Person in whose name a Security is registered.

     “Indebtedness” means indebtedness which is for money borrowed from others.

     “Indenture” means this Indenture as amended or supplemented from time to time.

     “Initial Issue Date” means the first date on which the Securities are issued under this
Indenture.

     “Interest Payment Date” shall have the meaning assigned to such term in the Securities.

3

 

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in any of
New York, New York, Houston, Texas or a place of payment are authorized or obligated by law,
regulation or executive order to remain closed.

     “Maturity,” when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

     “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness.

     “Officer” means the Chairman of the Board, the Chief Executive Officer, the President, any
Vice Chairman of the Board, any Vice President, the Chief Financial Officer, the Chief Accounting
Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Assistant
Secretary of a Person.

     “Officers’ Certificate” means a certificate signed by two Officers of a Person.

     “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the
Trustee. Such counsel may be an employee of or counsel to the Company, its parent corporation or
the Trustee.

     “Person” means any individual, corporation, partnership, limited liability company, limited or
general partnership, joint venture, incorporated or unincorporated association, joint-stock
company, trust, unincorporated organization or government or other agency or political subdivision
thereof or other entity of any kind.

     “Permitted Receivables Financing” means any receivables financing facility or arrangement
pursuant to which a Securitization Subsidiary purchases or otherwise acquires accounts receivable
of the Company or any of its Subsidiaries and enters into a third party financing thereof on terms
that the Board of Directors has concluded are customary and has market terms fair to the Company
and its Subsidiaries.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

     “Redemption Date,” when used with respect to any Security to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.

     “Redemption Price” shall have the meaning assigned to such term in the Securities.

     “Registration Default” shall have the meaning assigned to such term in the Securities.

     “Registration Rights Agreement” means the registration rights agreement, dated as of April 11,
2006, between the Company and the Initial Purchasers named therein.

4

 

     “Responsible Officer” when used with respect to the Trustee means any vice president, (whether
or not designated by numbers or words added before or after the title “vice president”), any
assistant vice president, or any other officer of the Trustee customarily performing functions
similar to those performed by the persons who at the time shall be such officers, respectively, or
to whom any corporate trust matter is referred because of his knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration of this
Indenture.

     “Sale and Leaseback Transaction” means any arrangement with any Person providing for the
leasing by the Company or any of its Subsidiaries of any property that has been or is to be sold or
transferred by the Company or any such Subsidiary to such Person in contemplation of such leasing.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the Company’s 6.40% Senior Notes due 2016, to be issued pursuant to this
Indenture on the Initial Issue Date and in accordance with clause (ii) of the fourth paragraph of
Section 2.02, including any Exchange Notes.

     “Securities Act” means the Securities Act of 1933, as amended, and any successor statute.

     “Securities Custodian” means the Trustee, as custodian with respect to the Securities in
global form, or any successor entity thereto.

     “Securitization Subsidiary” means a Subsidiary of the Company (1) that is designated a
“Securitization Subsidiary” by the Board of Directors, (2) that does not engage in, and whose
charter prohibits it from engaging in, any activities other than Permitted Receivables Financings
and any activity necessary, incidental or related thereto, (3) no portion of the Indebtedness or
any other obligation, contingent or otherwise, of which (A) is guaranteed by the Company or any
Subsidiary of the Company, (B) is recourse to or obligates the Company or any Subsidiary of the
Company in any way, or (C) subjects any property or asset of the Company or any Subsidiary of the
Company, directly or indirectly, contingently or otherwise, to the satisfaction thereof, and (4)
with respect to which neither the Company nor any Subsidiary of the Company has any obligation to
maintain or preserve such Subsidiary’s financial condition or cause it to achieve certain levels of
operating results other than, in respect of clauses (3) and (4), pursuant to customary
representations, warranties, covenants and indemnities entered into in connection with a Permitted
Receivables Financing.

     “Senior Debt” means (1) all Indebtedness of the Company or any of its Subsidiaries outstanding
under any Credit Agreement; (2) any other Indebtedness of the Company or any of its Subsidiaries,
unless the instrument under which such Indebtedness is incurred expressly provides that it is
subordinated in right of payment to the Securities; and (3) all obligations with respect to the
items listed in the preceding clauses (1) and (2).

     “Stated Maturity” means, with respect to any Security, the date specified in such Security as
the fixed date on which the principal of such Security is due and payable.

5

 

     “Subsidiary” of any Person means a corporation more than 50% of the outstanding voting stock
of which is owned, directly or indirectly, by such Person or by one or more other Subsidiaries of
such Person, or by such Person and one or more other Subsidiaries of such Person. For the purposes
of this definition, “voting stock” means stock which ordinarily has voting power for the election
of directors, whether at all times or only so long as no senior class of stock has such voting
power by reason of any contingency.

     “TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. Sections 77aaa-77bbbb), as
in effect on the Initial Issue Date.

     “Trustee” means the party named as such above until a successor replaces it in accordance with
the applicable provisions of this Indenture and thereafter means the successor serving hereunder.

     “U.S. Government Obligations” means direct obligations of the United States of America for the
payment of which the full faith and credit of the United States of America is pledged.

     “Williams” means The Williams Companies, Inc.

     “Williams Group Affiliates” means Williams and its Subsidiaries other than the Company and its
Subsidiaries.

     Section 1.02 Other Definitions

	 	 	 	 	 
	Term	 	Defined in Section
	“Additional Interest”
	 	Exhibit A
	“Agent Members”
	 	 	2.01	(c)
	“DTC”
	 	 	2.03	 
	“Global Security”
	 	 	2.01	(b)
	“Paying Agent”
	 	 	2.03	 
	“Registrar”
	 	 	2.03	 
	“Regulation S”
	 	 	2.01	(b)
	“Regulation S Global Securities”
	 	 	2.01	(b)
	“Rule 144A”
	 	 	2.01	(b)
	“Rule 144A Global Securities”
	 	 	2.01	(b)

     Section 1.03 Incorporation by Reference of Trust Indenture Act

     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings:

     “commission” means the SEC.

     “indenture securities” means the Securities.

     “indenture security holder” means a Holder.

6

 

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Company or any other obligor on the indenture
securities.

     All terms used in this Indenture that are defined by the TIA, defined by a TIA reference to
another statute or defined by an SEC rule under the TIA have the meanings so assigned to them.

     Section 1.04 Rules of Construction

     Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and in the plural include the singular;
and

     (5) provisions apply to successive events and transactions.

ARTICLE II

THE SECURITIES

     Section 2.01 Form and Dating

     (a) General. The Securities and the Trustee’s certificate of authentication shall be
substantially in the form of Exhibit A to this Indenture, the terms of which are hereby
incorporated into this Indenture. The Securities may have notations, legends or endorsements
required by law, securities exchange rule, the Company’s certificate of incorporation, memorandum
of association, articles of association, other organizational documents, agreements to which the
Company is subject, if any, or usage, provided that any such notation, legend or endorsement is in
a form acceptable to the Company. Each Security shall be dated the date of its authentication.
The Securities shall be in registered form without coupons and only in denominations of $2,000 and
any integral multiples of $1,000 in excess of $2,000. The terms and provisions contained in the
Securities shall constitute, and are hereby expressly made, a part of this Indenture and to the
extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.

7

 

     (b) Global Securities. Securities offered and sold to a QIB in reliance on Rule 144A under
the Securities Act (“Rule 144A”) shall be issued initially in the form of one or more permanent
global Securities in definitive, fully registered form without interest coupons (the “Rule 144A
Global Securities”) with the global securities legend set forth in Exhibit A hereto (the “global
securities legend”) and restricted securities legend set forth in Section 2.06 and numbered from 1
upward with the prefix “RA” and Securities offered and sold in reliance on Regulation S under the
Securities Act (“Regulation S”) shall be issued initially in the form of one or more permanent
global Securities in definitive, fully registered form without interest coupons (the “Regulation S
Global Securities”) with the global securities legend and restricted securities legend set forth in
Section 2.06 and numbered from 1 upward with the prefix “RS” and Exchange Notes shall be issued
initially in the form of one or more permanent Global Securities in definitive, fully registered
form without interest coupons with the global securities legend and numbered from 1 upward with the
prefix “R” (each, a “Global Security”), which shall be deposited on behalf of the purchasers of the
Securities represented thereby with the Trustee, at its New York office, as custodian for the
Depositary (or with such other custodian as the Depositary may direct), and registered in the name
of the Depositary or a nominee of the Depositary, duly executed by the Company and authenticated by
the Trustee as hereinafter provided. The aggregate principal amount of the Global Securities may
from time to time be increased or decreased by adjustments made on the records of the Trustee and
the Depositary or its nominee as hereinafter provided.

     (c) Book-entry Provisions. This Section 2.01(c) shall apply only to a Global Security
deposited with or on behalf of the Depositary.

     The Company shall execute and the Trustee shall, in accordance with this Section 2.01(c),
authenticate and deliver initially one or more Rule 144A Global Securities and Regulation S Global
Securities that (i) shall be registered in the name of the Depositary for such Global Securities or
the nominee of such Depositary and (ii) shall be delivered by the Trustee to such Depositary or
pursuant to such Depositary’s instructions or held by the Trustee as custodian for the Depositary.

     Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary or by the
Trustee as the custodian of the Depositary or under such Global Security, and the Depositary may be
treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute
owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from
giving effect to any written certification, proxy or other authorization furnished by the
Depositary or impair, as between the Depositary and its Agent Members, the operation of customary
practices of such Depositary governing the exercise of the rights of a holder of a beneficial
interest in any Global Security.

     (d) Certificated Securities. Except as provided in this Section 2.01 or Section 2.06 or 2.07,
owners of beneficial interests in Global Securities will not be entitled to receive physical
delivery of certificated Securities.

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     Section 2.02 Execution and Authentication

     One Officer of the Company shall sign the Securities on behalf of the Company by manual or
facsimile signature. The Company’s seal may be (but shall not be required to be) impressed,
affixed, imprinted or reproduced on the Securities and may be in facsimile form.

     If an Officer of the Company whose signature is on a Security no longer holds that office at
the time the Security is authenticated, the Security shall be valid nevertheless.

     A Security shall not be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose until authenticated by the manual signature of an authorized officer of the
Trustee, which signature shall be conclusive evidence that the Security has been authenticated
under this Indenture.

     The Trustee shall authenticate (i) for original issue on the Initial Issue Date, Securities in
the aggregate principal amount of $200,000,000 and (ii) any amount of additional Securities
specified by the Company and (iii) Exchange Notes pursuant to the Registration Rights Agreement in
exchange for an equal aggregate principal amount of Securities, in each case, upon a written order
of the Company signed by one Officer of the Company. Such order shall specify the amount of the
Securities to be authenticated and the date of original issue thereof. The aggregate principal
amount of Securities outstanding at any time may not exceed the aggregate principal amount of
Securities authorized for issuance by the Company pursuant to one or more written orders of the
Company, except as provided in Section 2.08 hereof. Subject to the foregoing, the aggregate
principal amount of Securities that may be issued under this Indenture shall not be limited.

     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities. Unless limited by the terms of such appointment, an authenticating agent may
authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An authenticating agent has
the same rights as an Agent to deal with the Company or any of its Affiliates.

     Section 2.03 Registrar and Paying Agent

     The Company shall maintain an office or agency where Securities may be presented for
registration of transfer or exchange (“Registrar”) and an office or agency where Securities may be
presented for payment (“Paying Agent”). The Registrar shall keep a register of the Securities and
of their transfer and exchange. The Company may appoint one or more co-registrars and one or more
additional paying agents. The term “Registrar” includes any co-registrar and the term “Paying
Agent” includes any additional paying agent.

     The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture. The agreement shall implement the provisions of this
Indenture that relate to such Agent. The Company shall notify the Trustee of the name and address
of any Agent not a party to this Indenture. The Company may change any Paying Agent or Registrar
without notice to any Holder. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries
may act as Paying Agent or Registrar.

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     The Company initially appoints the Trustee as Registrar and Paying Agent.

     The Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary with
respect to each Global Security.

     Section 2.04 Paying Agent to Hold Money in Trust

     The Company shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the
Paying Agent for the payment of principal of or premium, if any, or interest on the Securities,
whether such money shall have been paid to it by the Company and will notify the Trustee of any
default by the Company in making any such payment. While any such default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds
disbursed. The Company at any time may require a Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed. Upon payment over to the Trustee and upon
accounting for any funds disbursed, the Paying Agent (if other than the Company or a Subsidiary of
the Company) shall have no further liability for the money. If the Company or a Subsidiary of the
Company acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit
of the Holders all money held by it as Paying Agent.

     Section 2.05 Holder Lists

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Holders and shall otherwise comply with TIA
Section 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at
least seven Business Days before each Interest Payment Date, and at such other times as the Trustee
may request in writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Holders, and the Company shall otherwise comply with TIA
Section 312(a).

     Section 2.06 Transfer and Exchange

     (a) Transfer and Exchange of Global Securities.

     (i) The transfer and exchange of Global Securities or beneficial interests therein
shall be effected through the Depositary, in accordance with this Indenture (including
applicable restrictions on transfer set forth herein, if any) and the procedures of the
Depositary therefor. A transferor of a beneficial interest from one Global Security to
another Global Security shall deliver to the Registrar a written order given in accordance
with the Depositary’s procedures containing information regarding the participant account of
the Depositary to be credited with a beneficial interest in the Global Security to which
such transfer is being made. The Registrar shall, in accordance with such instructions,
instruct the Depositary to credit to the account of the Person specified in such
instructions a beneficial interest in such Global Security and to debit the account of the
Person making the transfer the beneficial interest in the Global Security being transferred.

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     (ii) Notwithstanding any other provisions of this Indenture (other than the provisions
set forth in Section 2.07), a Global Security may not be transferred as a whole except by
the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such nominee to
a successor Depositary or a nominee of such successor Depositary.

     (iii) In connection with any transfer of a Global Security other than an Exchange Note,
the transferor and the transferee shall complete the certifications contained on the
Assignment Form on the reverse of the related Global Security, if the transfer is within the
period referred to in such Assignment Form, and in connection with any transfer of a Global
Security pursuant to Regulation S, the transferor shall also complete the Regulation S
Letter contained on the reverse of the related Global Security, and in each case shall
deliver such certifications and/or Regulation S Letter, as the case may be, to the Registrar
as a condition to any such transfer.

     (iv) If a Global Security is exchanged for Securities in definitive registered form
pursuant to this Section 2.06 or Section 2.07, such Securities may be exchanged only in
accordance with such procedures as are substantially consistent with the provisions of this
Section 2.06 (including (if such Securities are not Exchange Notes) the certification and
other requirements set forth on the reverse of the Securities intended to ensure that such
transfers comply with Rule 144A or Regulation S, as the case may be, or are otherwise in
compliance with the requirements of the Securities Act) and such other procedures as may
from time to time be adopted by the Company.

     (b) Legend.

     (i) Except for Exchange Notes and as permitted by the following paragraph (ii), each
Security certificate evidencing the Global Securities (and all Securities issued in exchange
therefor or in substitution thereof) shall bear a legend in substantially the following
form:

THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR
FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE NEXT
SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE
HOLDER:

     (1) REPRESENTS THAT (A) IT IS A QUALIFIED INSTITUTIONAL BUYER, AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT, OR (B) IT HAS ACQUIRED THIS
SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER
THE SECURITIES ACT;

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     (2) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS SECURITY,
EXCEPT (A) TO TRANSCONTINENTAL GAS PIPE LINE CORPORATION OR ANY OF ITS
SUBSIDIARIES, (B) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (C) IN AN OFFSHORE TRANSACTION MEETING THE
REQUIREMENTS OF RULE 904 OF THE SECURITIES ACT, (D) IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, OR (E) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT AND, IN EACH OF THE CASES, IN ACCORDANCE
WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY
OTHER APPLICABLE JURISDICTION;

     (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY OR
AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND; AND

     (4) AGREES THAT, BEFORE THE HOLDER OFFERS, SELLS OR OTHERWISE TRANSFERS
THIS SECURITY, TRANSCONTINENTAL GAS PIPE LINE CORPORATION MAY REQUIRE THE
HOLDER OF THIS SECURITY TO DELIVER A WRITTEN OPINION, CERTIFICATIONS AND/OR
OTHER INFORMATION THAT IT REASONABLY REQUIRES TO CONFIRM THAT SUCH PROPOSED
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE UNITED STATES.

AS USED IN THIS SECURITY, THE TERMS “OFFSHORE TRANSACTION,” “U.S. PERSON”
AND “UNITED STATES” HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF
REGULATION S UNDER THE SECURITIES ACT.

     (ii) Upon any sale or transfer of a Security (including any Security represented by a
Global Security) pursuant to Rule 144 under the Securities Act, in the case of any Security
that is represented by a Global Security, the Registrar shall permit the Holder thereof to
exchange such Security for a certificated Security that does not bear the legend set forth
above and rescind any restriction on the transfer of such Security, if the Holder certifies
in writing to the Registrar that its request for such exchange was made in reliance on Rule
144 under the Securities Act (such certification to be in the form set forth on the reverse
of the Security).

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     (c) Cancellation or Adjustment of Global Security. At such time as all beneficial interests
in a Global Security have either been exchanged for certificated Securities, redeemed, repurchased
or canceled, such Global Security shall be returned to the Depositary for cancellation or retained
and canceled by the Trustee. At any time prior to such cancellation, if any beneficial interest in
a Global Security is exchanged for certificated Securities, redeemed, repurchased or canceled, the
principal amount of Securities represented by such Global Security shall be reduced and an
adjustment shall be made on the books and records of the Trustee (if it is then the Securities
Custodian for such Global Security) with respect to such Global Security, by the Trustee or the
Securities Custodian, to reflect such reduction.

     (d) Obligations with Respect to Transfers and Exchanges of Securities.

     (i) To permit registrations of transfers and exchanges, the Company shall execute and
the Trustee shall authenticate certificated Securities and Global Securities at the
Registrar’s or co-Registrar’s request. No service charge shall be made for any registration
of transfer or exchange, but the Company may require payment of a sum sufficient to cover
any transfer tax, assessments, or similar governmental charge payable in connection
therewith (other than any such transfer taxes, assessments or similar governmental charge
payable upon exchange or transfer pursuant to Sections 2.11, 8.05 and 9.06).

     (ii) The Registrar or co-registrar shall not be required to register the transfer of or
exchange of (a) any certificated Security selected for redemption in whole or in part
pursuant to Article IX, except the unredeemed portion of any certificated Security being
redeemed in part, or (b) any Security for a period beginning 15 Business Days before the
mailing of a notice of redemption of the Securities or 15 Business Days before an Interest
Payment Date.

     (iii) Prior to the due presentation for registration of transfer of any Security, the
Company, the Trustee, the Paying Agent, the Registrar or any co-Registrar may deem and treat
the Person in whose name a Security is registered as the absolute owner of such Security for
the purpose of receiving payment of principal of, premium, if any, and (subject to the
record date provisions hereof) interest on such Security and for all other purposes
whatsoever, whether or not such Security is overdue, and none of the Company, the Trustee,
the Paying Agent, the Registrar or any co-registrar shall be affected by notice to the
contrary.

     (iv) All Securities issued upon any transfer or exchange pursuant to the terms of this
Indenture shall evidence the same debt and shall be entitled to the same benefits under this
Indenture as the Securities surrendered upon such transfer or exchange.

     (e) No Obligation of the Trustee.

     (i) The Trustee shall have no responsibility or obligation to any beneficial owner of a
Global Security, any Agent Member or other Person with respect to the accuracy of the
records of the Depositary or its nominee or of any participant or member thereof, with
respect to any ownership interest in the Securities or with respect to the

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delivery to any participant, member, beneficial owner or other Person (other than the
Depositary) of any notice (including any notice of redemption) or the payment of any amount,
under or with respect to such Securities. All notices and communications to be given to the
Holders and all payments to be made to Holders under the Securities shall be given or made
only to or upon the order of the registered Holders (which shall be the Depositary or its
nominee in the case of a Global Security). The rights of beneficial owners in any Global
Security shall be exercised only through the Depositary subject to the applicable rules and
procedures of the Depositary. The Trustee may rely conclusively and shall be fully
protected in relying upon information furnished by the Depositary with respect to its
members, participants and any beneficial owners.

     (ii) The Trustee shall have no obligation or duty to monitor, determine or inquire as
to compliance with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Security (including any
transfers between or among Depositary participants, members or beneficial owners in any
Global Security) other than to require delivery of such certificates and other documentation
or evidence as are expressly required by, and to do so if and when expressly required by,
the terms of this Indenture, and to examine the same to determine substantial compliance as
to form with the express requirements hereof.

     Section 2.07 Certificated Securities

     (a) A Global Security deposited with the Depositary or with the Trustee as custodian for the
Depositary pursuant to Section 2.01 shall be transferred to the beneficial owners thereof in the
form of certificated Securities in an aggregate principal amount equal to the principal amount of
such Global Security, in exchange for such Global Security, only if such transfer complies with
Section 2.06 and (i) the Depositary notifies the Company that it is unwilling or unable to continue
as Depositary for such Global Security or if at any time such Depositary ceases to be a “clearing
agency” registered under the Exchange Act and a successor depositary is not appointed by the
Company within 90 days of such notice or cessation, or (ii) the Company, in its sole discretion and
subject to the procedures of the Depositary, notifies the Trustee in writing that it elects to
cause the issuance of certificated Securities under this Indenture.

     (b) Any Global Security that is transferred to the beneficial owners thereof pursuant to this
Section shall be surrendered by the Depositary to the Trustee at its office located in the Borough
of Manhattan, The City of New York, to be so transferred, in whole or from time to time in part,
without charge, and the Trustee shall authenticate and deliver, upon such transfer of each portion
of such Global Security, an equal aggregate principal amount of certificated Securities of
authorized denominations. Any portion of a Global Security transferred pursuant to this Section
shall be executed, authenticated and delivered only in denominations of $2,000 and any integral
multiples of $1,000 in excess of $2,000 and registered in such names as the Depositary shall
direct. Any certificated Security delivered in exchange for an interest in the Global Security
shall, except as otherwise provided by Section 2.06(b)(ii) and unless such certificated Security is
an Exchange Note, bear the restricted securities legend set forth in Section 2.06(b).

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     (c) Subject to the provisions of Section 2.06(b), the registered Holder of a Global Security
may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action which a Holder is entitled to take under
this Indenture or the Securities.

     (d) If any of the events specified in Section 2.07(a) occurs, the Company shall promptly make
available to the Trustee a reasonable supply of certificated Securities in definitive, fully
registered form without interest coupons.

     (e) If a certificated Security (other than an Exchange Note) issued pursuant to this Section
2.07 is exchanged for another certificated Security, such Securities may be exchanged only in
accordance with such procedures as are substantially consistent with the provisions of (i) Section
2.06(a)(iii) and (iv) (including the certification and other requirements set forth on the reverse
of the Securities intended to ensure that such transfers comply with Rule 144A or Regulation S, as
the case may be, or are otherwise in compliance with the requirements of the Securities Act) and
such other procedures as may from time to time be adopted by the Company and (ii) Section 2.06(b).

     Section 2.08 Replacement Securities

     If any mutilated Security is surrendered to the Trustee, or the Company and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any Security, the
Company shall issue and the Trustee shall authenticate a replacement Security, but only if the
Trustee’s requirements are met. If required by the Trustee or the Company, such Holder must
furnish an indemnity bond that is sufficient in the judgment of the Trustee and the Company to
protect the Company, the Trustee, any Agent or any authenticating agent from any loss which any of
them may suffer if a Security is replaced. The Company and the Trustee may charge for their
expenses in replacing a Security. If, after the delivery of such replacement Security, a bona fide
purchaser of the original Security in lieu of which such replacement Security was issued presents
for payment or registration such original Security, the Trustee shall be entitled to recover such
replacement Security from the Person to whom it was delivered or any Person taking therefrom,
except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by the Trustee or the
Company in connection therewith.

     Every replacement Security is an additional obligation of the Company.

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.

     The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.

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     Section 2.09 Outstanding Securities

     The Securities outstanding at any time are all the Securities authenticated by the Trustee
except for those canceled by it, those delivered to it for cancellation, those reductions in the
interest in a Global Security effected by the Trustee hereunder and those described in this Section
2.09 as not outstanding; provided, however, that in determining whether the holders of the
requisite principal amount of outstanding Securities are present at a meeting of holders of
Securities for quorum purposes or have consented to or voted in favor of any request, demand,
authorization, direction, notice, consent, waiver, amendment or modification hereunder, Securities
held for the account of the Company, any of its Subsidiaries or any of their respective Affiliates
shall be disregarded and deemed not to be outstanding, except that in determining whether the
Trustee shall be protected in making such a determination or relying upon any such quorum, consent
or vote, only Securities which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded.

     If a Security is replaced pursuant to Section 2.08 hereof, it ceases to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.

     If the principal amount of any Security is considered paid under Section 3.01 hereof, it
ceases to be outstanding and interest on it ceases to accrue.

     A Security does not cease to be outstanding because the Company or any of its Affiliates holds
the Security.

     Section 2.10 Treasury Securities

     In determining whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company or any of its
Affiliates shall be disregarded, except that for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only Securities which a
Responsible Officer of the Trustee actually knows are so owned shall be so disregarded.

     Section 2.11 Temporary Securities

     Until definitive Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate temporary Securities. Temporary Securities shall be substantially in the form
of definitive Securities, but may have variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate definitive Securities in exchange for temporary Securities. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities.

     Section 2.12 Cancellation

     The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment. The Trustee shall cancel all Securities

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surrendered for registration of transfer, exchange, payment, replacement or cancellation. All
canceled Securities held by the Trustee shall be disposed of in accordance with the usual disposal
procedures of the Trustee. The Company may not issue new Securities to replace Securities that
have been paid or that have been delivered to the Trustee for cancellation.

     Section 2.13 Defaulted Interest

     If the Company defaults in a payment of interest on the Securities, it shall pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest on the defaulted interest, in
each case at the rate provided in the Securities and in Section 3.01 hereof. The Company may pay
the defaulted interest to the Persons who are Holders on a subsequent special record date. At
least 15 days before any special record date, the Company (or the Trustee, in the name of and at
the expense of the Company) shall mail to Holders a notice that states the special record date, the
related payment date and the amount of such interest to be paid.

     Section 2.14 Persons Deemed Owners

     The Company, the Trustee, any Agent and any authenticating agent may treat the Person in whose
name any Security is registered as the owner of such Security for the purpose of receiving payments
of principal of or premium, if any, or (subject to the record date provisions hereof) interest on
such Security and for all other purposes. None of the Company, the Trustee, any Agent or any
authenticating agent shall be affected by any notice to the contrary.

     Section 2.15 CUSIP Numbers

     The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and,
if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Securities or as contained in any notice of a redemption and
that reliance may be placed only on the other identification numbers printed on the Securities, and
any such redemption shall not be affected by any defect in or omission of such numbers. The
Company shall promptly notify the Trustee of any change in the “CUSIP” numbers.

ARTICLE III

COVENANTS

     Section 3.01 Payment of Securities

     The Company shall pay the principal of and premium, if any, and interest on the Securities on
the dates and in the manner provided in the Securities and in this Indenture. Principal, premium,
if any, and interest shall be considered paid on the date due if the Paying Agent, other than the
Company or a Subsidiary of the Company, holds by 11:00 a.m., Eastern time, on that date money
deposited by the Company designated for and sufficient to pay all principal, premium, if any, and
interest then due.

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     To the extent lawful, the Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal, premium, if any, and interest payments
(without regard to any applicable grace period) at a rate equal to the interest rate on the
Securities then in effect.

     Additional Interest shall be payable on the Securities if a Registration Default has occurred
and is continuing, all as more fully provided for in the form of the Securities attached hereto as
Exhibit A.

     If at any time Additional Interest becomes payable by the Company pursuant to the Registration
Rights Agreement, the Company shall promptly deliver to the Trustee an Officers’ Certificate to
that effect and stating (i) the amount of such Additional Interest that is payable and (ii) the
date on which such Additional Interest is payable pursuant to the terms of the Registration Rights
Agreement. Unless and until a Responsible Officer of the Trustee receives such an Officers’
Certificate, the Trustee may assume without inquiry that no Additional Interest is payable. If the
Company has paid Additional Interest directly to the Persons entitled to such amounts, the Company
shall deliver to the Trustee a certificate setting forth the particulars of such payment.

     Subject to the foregoing provisions, whenever in this Indenture there is mentioned, in any
context, the payment of the interest on, or in respect of, any Security, such mention shall be
deemed to include mention of the payment of Additional Interest to the extent that, in such
context, Additional Interest is, was or would be payable in respect thereof pursuant to the
provisions of this Section and express mention of the payment of Additional Interest (if
applicable) in any provisions hereof shall not be construed as excluding Additional Interest in
those provisions hereof where such express mention is not made.

     Section 3.02 Maintenance of Office or Agency

     The Company shall maintain, in the Borough of Manhattan, The City of New York, an office or
agency (which may be an office of the Trustee, the Registrar or the Paying Agent) where Securities
may be presented for registration of transfer or exchange, where Securities may be presented for
payment and where notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served. Unless otherwise designated by the Company by written notice to the
Trustee, such office or agency shall be the principal office of the Trustee in the Borough of
Manhattan, The City of New York, which, on the date hereof, is located at the address set forth in
Section 10.02 hereof. The Company shall give prompt written notice to the Trustee of the location,
and any change in the location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate
Trust Office of the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, The City of New York for such purposes. The Company shall give

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prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency. The Company hereby designates the Corporate
Trust Office of the Trustee as one such office or agency of the Company in accordance with Section
2.03 hereof.

     Section 3.03 SEC Reports; Financial Statements

     (a) Notwithstanding that the Company may not be required to remain subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, the Company shall file with the SEC and
provide the Trustee and the Holders with such annual and quarterly reports and such information,
documents and other reports specified in Sections 13 and 15(d) of the Exchange Act within 15 days
after the date it is required (or would otherwise have been required) to file such reports,
information and documents. Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee’s receipt of such shall not constitute constructive
notice of any information contained therein or determinable from information contained therein,
including the Company’s compliance with any of the covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).

     (b) In addition, whether or not required by the rules and regulations of the SEC, the Company
shall file a copy of all such information and reports with the SEC for public availability (unless
the SEC will not accept such filing). In addition, the Company shall furnish to the Holders and to
prospective investors, upon the requests of Holders, any information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act so long as the Securities are not freely
transferable under the Securities Act.

     (c) The Company shall provide the Trustee with a sufficient number of copies of all reports
and other documents and information that the Trustee may be required to deliver to Holders under
this Section 3.03.

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

     Section 3.04 Compliance Certificate

     (a) The Company shall deliver to the Trustee, on or prior to the last day of the fifth month
after the end of each fiscal year of the Company, a statement signed by two Officers of the Company
(one of whom shall be the principal financial, principal accounting or principal executive officer
of the Company), which statement need not constitute an Officers’ Certificate, complying with TIA
Section 314(a)(4) and stating that in the course of performance by the signing Officers of the
Company of their duties as such Officers, they would normally obtain knowledge of the keeping,
observing, performing and fulfilling by the Company, of its obligations under this Indenture, and
further stating, as to each such Officer signing such statement, that to the best of his knowledge,
the Company has kept, observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the

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performance or observance of any of the terms, provisions and conditions hereof (or, if a
Default or Event of Default shall have occurred, describing all such Defaults or Events of Default
of which such Officer may have knowledge and what action the Company is taking or proposes to take
with respect thereto).

     (b) The Company shall, so long as any of the Securities are outstanding, deliver to the
Trustee, forthwith upon any Officer of the Company becoming aware of any Default or Event of
Default under this Indenture, an Officers’ Certificate specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto.

     Section 3.05 Limitation on Liens

     After the date hereof and so long as any Securities are outstanding, the Company shall not,
and shall not permit any Subsidiary of the Company to, issue, assume or guarantee any Indebtedness
secured by a mortgage, pledge, lien, security interest or encumbrance (any mortgage, pledge, lien,
security interest or encumbrance being hereinafter in this Article referred to as a “mortgage” or
“mortgages” or as a “lien” or “liens”) of, or upon any property of the Company or of any Subsidiary
of the Company, without effectively providing that the Securities (together with, if the Company
shall so determine, any other Indebtedness of the Company ranking equally with the Securities)
shall be equally and ratably secured with such Indebtedness; provided, however, that the foregoing
restriction shall not apply to:

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

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

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

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     (d) any mortgage existing on any property of a Subsidiary of the Company at the time it
becomes a Subsidiary of the Company and any mortgage on property existing at the time of
acquisition thereof;

     (e) any refunding or extension of maturity, in whole or in part, of any mortgage created or
assumed in accordance with the provisions of subdivision (a), (b), (c) or (d) above or (j), (p), or
(cc) below, provided that the principal amount of the Indebtedness secured by such refunding
mortgage or extended mortgage shall not exceed the principal amount of the Indebtedness secured by
the mortgage to be refunded or extended outstanding at the time of such refunding or extension and
that such refunding mortgage or extended mortgage shall be limited in lien to the same property
that secured the mortgage so refunded or extended;

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

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

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

     (i) mortgages upon rights-of-way;

     (j) undetermined mortgages and charges incidental to construction or maintenance;

     (k) 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;

     (l) the lien of taxes and assessments which are not at the time delinquent;

     (m) the lien of specified taxes and assessments which are delinquent but the validity of which
is being contested in good faith at the time by the Company or a Subsidiary of the Company;

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     (n) the lien reserved in leases for rent and for compliance with the terms of the lease in the
case of leasehold estates;

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

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

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

     (r) rights reserved to or vested in any municipality or public authority to control or
regulate any property of the Company or a Subsidiary of the Company, 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 Company or such Subsidiary of the Company;

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

     (t) the liens of any judgments in an aggregate amount not in excess of $2,000,000 or the lien
of any judgment the execution of which has been stayed or which has been appealed and secured, if
necessary, by the filing of an appeal bond;

     (u) zoning laws and ordinances;

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

     (w) leases now or hereafter existing and any renewals or extensions thereof;

     (x) any lien on inventory and receivables incurred in the ordinary course of business to
secure Indebtedness incurred for working capital purposes including liens incurred in connection
with a sale of receivables;

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     (y) any mortgage of the Company securing any Credit Facility and all Obligations and Hedging
Obligations relating to such Indebtedness (but excluding any Credit Facility with Williams or any
Williams Group Affiliate, as lender);

     (z) any mortgage in favor of the Company;

     (aa) any mortgage existing on the date of this Indenture;

     (bb) any mortgage on accounts receivable and related assets and proceeds thereof arising in
connection with a Permitted Receivables Financing; and

     (cc) any mortgage not permitted by clauses (a) through (bb) above if at the time of, and after
giving effect to, the creation or assumption of any such mortgage, the aggregate of all
Indebtedness of the Company and its Subsidiaries secured by all such mortgages not so permitted by
clauses (a) through (bb) above do not exceed 15% of Consolidated Net Tangible Assets.

     In the event that the Company or a Subsidiary of the Company shall hereafter secure the
Securities equally and ratably with any other obligation or Indebtedness pursuant to the provisions
of this Section 3.5, the Trustee is hereby authorized at the written direction of the Company to
enter into an indenture supplemental hereto and to take such action, if any, as necessary to enable
it to enforce the rights of the Holders of the Securities so secured, equally and ratably with such
other obligation or Indebtedness.

     The Trustee, at its request, may require and be provided with an Opinion of Counsel as
conclusive evidence that any such supplemental indenture or steps taken to secure the Securities
equally and ratably comply with the provisions of this Section 3.5.

     Section 3.06 Limitation on Sale and Leaseback Transactions

     The Company shall not, and shall not permit any of its Subsidiaries to, enter into any Sale
and Leaseback Transaction with any Person (other than the Company or any of its Subsidiaries)
unless:

     (a) such Sale and Leaseback Transaction occurs within one year from the date of completion of
the acquisition of the property subject thereto or the date of the completion of construction,
development, or substantial repair or improvement, or commencement of full operations on such
property, whichever is later;

     (b) the Sale and Leaseback Transaction involves a lease for a period, including renewals, of
not more than three years;

     (c) the Company or any such Subsidiary would be entitled under Section 3.05 to incur a
mortgage securing Indebtedness, in a principal amount equal to or exceeding the Attributable Debt
from such Sale and Leaseback Transaction, without equally and ratably securing the Securities
pursuant to Section 3.05; or

     (d) the Company or any such Subsidiary, within a one-year period after such Sale and Leaseback
Transaction, applies or causes to be applied an amount not less than the Attributable

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Debt from such Sale and Leaseback Transaction to (a) the permanent prepayment, repayment,
redemption, reduction, or retirement of any of the Company’s or any of its Subsidiaries’ Senior
Debt that is owed to any Person other than an Affiliate of the Company, or (b) the expenditure or
expenditures for property used or to be used in the ordinary course of Company’s business or that
of any of its Subsidiaries.

     Notwithstanding the foregoing, the Company may, and may permit any of its Subsidiaries
to, effect any Sale and Leaseback Transaction that is not excepted by clauses (a) through
(d), inclusive, of this Section 3.06, provided that the Attributable Debt from such Sale and
Leaseback Transaction, together with the aggregate principal amount of outstanding
Indebtedness (other than the Securities) secured by mortgages (other than mortgages
permitted under Section 3.05 hereof) and the aggregate amount of Attributable Debt deemed to
be outstanding in respect of all other Sale and Leaseback Transactions (excluding those
otherwise permitted by clauses (a) through (d), inclusive, of this Section 3.06), does not
exceed 15% of Consolidated Net Tangible Assets.

ARTICLE IV

CONSOLIDATION, MERGER AND SALE

     Section 4.01 Limitation on Mergers and Consolidations

     The Company shall not consolidate with or merge into any other entity or convey, transfer or
lease its properties and assets substantially as an entirety to any Person, unless (a) the
corporation, limited liability company, limited partnership, joint stock company, or trust formed
by such consolidation or into which the Company is merged or the Person which acquires by
conveyance, transfer or lease the properties and assets of the Company substantially as an entirety
shall expressly assume, by a supplemental indenture hereto, executed and delivered to the Trustee,
in form reasonably satisfactory to the Trustee, the due and punctual payment of the principal of
and interest on all the Securities, and the performance of every covenant of this Indenture on the
part of the Company to be performed or observed, (b) immediately after giving effect to such
transaction, no Default or Event of Default, shall have happened and be continuing, and (c) the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel each
stating that such consolidation, merger, conveyance, transfer or lease and such supplemental
indenture comply with this Article and that all conditions precedent herein provided for relating
to such transaction have been complied with.

     Section 4.02 Successors Substituted

     In case of any such consolidation, merger, sale, lease, conveyance or transfer, and following
such an assumption by the successor Person, such successor Person shall succeed to and be
substituted for the Company, with the same effect as if it had been named herein. Such successor
Person may cause to be signed, and may issue either in its own name or in the name of the Company
prior to such succession any or all of the Securities issuable hereunder which theretofore shall
not have been signed by the Company and delivered to the Trustee; and, upon the order of such
successor Person, instead of the Company, and subject to all the terms, conditions and limitations
in this Indenture prescribed, the Trustee shall authenticate and shall

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deliver any Securities which previously shall have been signed and delivered by the officers
of the Company to the Trustee for authentication, and any Securities which such successor Person
thereafter shall cause to be signed and delivered to the Trustee for that purpose. All of the
Securities so issued shall in all respects have the same legal rank and benefit under this
Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Securities had been issued at the date of the execution hereof.

     In case of any such consolidation, merger, sale, lease, conveyance or transfer, such changes
in phrasing and form (but not in substance) may be made in the Securities thereafter to be issued
as may be appropriate. In the event of any such sale, conveyance or transfer (other than a
conveyance by way of lease), the Company or any successor Person which shall theretofore have
become such in the manner described in this Article shall be discharged from all obligations and
covenants under this Indenture, and the Securities and may be liquidated and dissolved.

ARTICLE V

DEFAULTS AND REMEDIES

     Section 5.01 Events of Default

     “Event of Default,” means any one of the following events (whatever the reason for such Event
of Default and whether it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

     (1) default in the payment of any interest upon any Security when it becomes due and
payable, and continuance of such default for a period of 30 days; or

     (2) default in the payment of the principal of (or premium, if any, on) any Security at
its Maturity; or

     (3) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture (other than a covenant or warranty a default in whose performance or whose
breach is elsewhere in this Section specifically dealt with), and continuance of such
default or breach for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the outstanding Securities a written notice
specifying such default or breach and requiring it to be remedied and stating that such
notice is a “Notice of Default” hereunder; provided, however, that if such default is not
capable of remedy within such 60-day period, such 60-day period shall be extended by an
additional 60 days so long as (i) such default is subject to cure and (ii) the Company is
using commercially reasonable efforts to cure such default; and provided further that the
occurrence of any of the events described in this clause (3) shall not constitute an Event
of Default if such occurrence is the result of changes in generally accepted accounting
principles as recognized by the American Institute of Certified Public Accountants at the
date as of which this Indenture is executed and a certificate to

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such effect is delivered to the Trustee by the Company’s independent public
accountants; or

     (4) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company in an involuntary case or proceeding under any
applicable federal or State bankruptcy, insolvency, reorganization or other similar law or
(B) a decree or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or composition of
or in respect of the Company under any applicable federal or State law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or of any substantial part of the property of the Company, or ordering the
winding up or liquidation of the affairs of the Company, and the continuance of any such
decree or order for relief or any such other decree or order unstayed and in effect for a
period of 90 consecutive days; or

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

     The Trustee shall not be deemed to have knowledge or notice of a Default or Event of Default
unless a Responsible Officer at the Corporate Trust Office of the Trustee has actual knowledge of
such Default or Event of Default or the Trustee receives written notice at the Corporate Trust
Office of the Trustee of such Default or Event of Default with specific reference to such Default
from the Company or a Holder.

     When a Default is cured, or when an Event of Default is deemed cured pursuant to Section 5.04,
such Default, or Event of Default, as the case may be, ceases.

     Section 5.02 Acceleration

     If an Event of Default (other than an Event of Default specified in clause (4) or (5) of
Section 5.01 hereof) occurs and is continuing, the Trustee by notice to the Company, or the Holders
of at least 25% in principal amount of the then outstanding Securities by notice to the Company and
the Trustee, may declare the principal of and premium, if any, and accrued and unpaid interest on
all then outstanding Securities to be due and payable immediately. Upon any such declaration the
amounts due and payable on the Securities, as determined in accordance

26

 

with the next succeeding paragraph, shall be due and payable immediately. If an Event of
Default specified in clause (4) or (5) of Section 5.01 hereof occurs, the principal of and premium,
if any, and accrued and unpaid interest on all Securities then outstanding shall ipso facto become
and be immediately due and payable without any declaration, notice or other act on the part of the
Trustee or any Holder.

     At any time after such a declaration of acceleration with respect to the Securities has been
made and before a judgment for payment of the money due has been obtained by the Trustee as
hereinafter in this Article V provided, the Holders of a majority in principal amount of the
outstanding Securities, by written notice to the Company and the Trustee, may rescind and annul
such declaration and its consequences if:

     (1) the Company has paid or deposited with the Trustee a sum sufficient to pay:

     (A) all overdue interest on all Securities,

     (B) the principal of (and premium, if any, on) any Securities which
have become due otherwise than by such declaration of acceleration and any
interest thereon at the rate then borne by such Securities or in this
Indenture,

     (C) to the extent that payment of such interest is lawful, interest
upon overdue interest at the rate then borne by the Securities or in this
Indenture, and

     (D) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel;

and

     (2) all Events of Default, other than the non-payment of the principal of Securities
which have become due solely by such declaration of acceleration, have been cured or waived
as provided in Section 5.04.

     No such rescission shall affect any subsequent Default or impair any right consequent thereon.

     If the maturity of the Securities is accelerated pursuant to this Section 5.02, 100% of the
principal amount thereof shall become due and payable plus premium, if any, and accrued interest to
the date of payment.

     Section 5.03 Other Remedies

     If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of principal of, or premium, if any, or interest on the Securities or to
enforce the performance of any provision of the Securities or this Indenture.

27

 

     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

     Section 5.04 Waiver of Existing Defaults

     Subject to Sections 5.07 and 8.02 hereof, the Holders of a majority in principal amount of the
outstanding Securities by notice to the Trustee may waive an existing Default or Event of Default
and its consequences (including waivers obtained in connection with a tender offer or exchange
offer for the Securities or a solicitation of consents in respect of the Securities, provided that
in each case such offer or solicitation is made to all Holders of the Securities then outstanding
on equal terms), except (1) a continuing Default or Event of Default in the payment of the
principal of, or premium, if any, or interest on the Securities or (2) a continuing Default in
respect of a provision that under Section 8.02 hereof cannot be amended without the consent of each
Holder affected. Upon any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

     Section 5.05 Control by Majority

     The Holders of a majority in principal amount of the Securities then outstanding may direct
the time, method and place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on it hereunder. However, the Trustee may refuse to follow
any direction that conflicts with applicable law or this Indenture, that the Trustee determines may
be unduly prejudicial to the rights of other Holders, or that may involve the Trustee in personal
liability; provided, however, that the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction. Prior to taking any action hereunder, the
Trustee shall be entitled to indemnification satisfactory to it in its sole discretion against all
losses and expenses caused by taking or not taking such action.

     Section 5.06 Limitations on Suits

     Subject to Section 5.07 hereof, a Holder may pursue a remedy with respect to this Indenture or
the Securities only if:

     (1) such Holder gives to the Trustee written notice of a continuing Event of Default;

     (2) the Holders of at least 25% in principal amount of the Securities then outstanding
make a written request to the Trustee to pursue the remedy;

     (3) such Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee
against any loss, liability or expense;

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     (4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and

     (5) during such 60-day period the Holders of a majority in principal amount of the
Securities do not give the Trustee a direction inconsistent with the request.

     A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder.

     Section 5.07 Rights of Holders to Receive Payment

     Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
to receive payment of principal of, and premium, if any, and interest on the Security, on or after
the respective due dates expressed or provided for in the Security, or to bring suit for the
enforcement of any such payment on or after such respective dates, is absolute and unconditional
and shall not be impaired or affected without the consent of such Holder.

     Section 5.08 Collection Suit by Trustee

     If an Event of Default specified in clause (1) or (2) of Section 5.01 hereof occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an
express trust against the Company for the amount of principal and premium, if any, and interest
remaining unpaid on the Securities, and interest on overdue principal, premium, if any, to the
extent lawful, interest on overdue interest and such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

     Section 5.09 Trustee May File Proofs of Claim

     The Trustee is authorized to file such proofs of claim and other papers or documents and to
take such actions, including participating as a member, voting or otherwise, of any committee of
creditors, as may be necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel) and the Holders allowed in any judicial proceedings relative to the Company or
its creditors or properties and shall be entitled and empowered to collect, receive and distribute
any money or other property payable or deliverable on any such claims and any Custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and
in the event that the Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.07 hereof. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 6.07 hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties which the Holders may be entitled
to receive in such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or

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adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

     Section 5.10 Priorities

     If the Trustee collects any money pursuant to this Article, it shall pay out the money in the
following order:

     First: to the Trustee for amounts due under Section 6.07 hereof;

     Second: to Holders for amounts due and unpaid on the Securities for principal, premium,
if any, and interest ratably, without preference or priority of any kind, according to the
amounts due and payable on the Securities for principal, premium, if any, and interest,
respectively; and

     Third: to the Company.

     The Trustee, upon prior written notice to the Company, may fix a record date and payment date
for any payment to Holders pursuant to this Article.

     Section 5.11 Undertaking for Costs

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section does not apply to a suit
by the Trustee, a suit by a Holder pursuant to Section 5.07 hereof, or a suit by a Holder or
Holders of more than 10% in principal amount of the Securities then outstanding.

ARTICLE VI

TRUSTEE

     Section 6.01 Duties of Trustee

     (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture, and use the same degree of care and skill in
such exercise, as a prudent man would exercise or use under the circumstances in the conduct of his
own affairs.

     (b) Except during the continuance of an Event of Default:

     (1) the Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

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     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, with respect to certificates or opinions specifically required by any
provision hereof to be furnished to it, the Trustee shall examine such certificates and
opinions to determine whether or not, on their face, they appear to conform substantially to
the requirements of this Indenture.

     (c) The Trustee may not be relieved from liabilities for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

     (1) this paragraph does not limit the effect of paragraph (b) of this Section;

     (2) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts;

     (3) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 5.05
hereof; and

     (4) no provision of this Indenture shall require the Trustee to expend or risk its own
funds or incur any liability.

     (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

     (e) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law. All money received by the
Trustee shall, until applied as herein provided, be held in trust for the payment of the principal
of, and premium if any, and interest on the Securities.

     Section 6.02 Rights of Trustee

     (a) The Trustee may rely conclusively on any document (whether in its original or facsimile
form) believed by it to be genuine and to have been signed or presented by the proper Person. The
Trustee need not investigate any fact or matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both covering such matters as the Trustee shall reasonably request.
The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance
on such Officers’ Certificate or Opinion of Counsel. The Trustee may consult with counsel of its
own selection and the advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in
good faith and in reliance thereon.

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     (c) The Trustee may act through agents or attorneys and shall not be responsible for the
misconduct or negligence of any agent or attorney appointed with due care.

     (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers conferred upon it by this
Indenture.

     (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.

     (f) The Trustee is not required to give any bond or surety with respect to the performance of
its duties or the exercise of its powers under this Indenture.

     (g) The Trustee’s immunities and protections from liability and its right to indemnification
in connection with the performance of its duties under this Indenture shall extend and be
enforceable by the Trustee in each of its capacities hereunder and shall extend to the Trustee’s
officers, directors, agents, attorneys and employees. Such immunities and protections and right to
indemnity, together with the Trustee’s right to compensation and reimbursement of expenses, shall
survive the Trustee’s resignation or removal, the discharge of this Indenture and final payment of
the Securities.

     (h) The permissive right of the Trustee to take the actions permitted by this Indenture shall
not be construed as an obligation or duty to do so.

     (i) Except for information provided by the Trustee concerning the Trustee, the Trustee shall
have no responsibility for any information in any offering memorandum or other disclosure material
distributed with respect to the Securities, and the Trustee shall have no responsibility for
compliance with any state or federal securities laws in connection with the Securities.

     (j) The Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

     (k) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the
Trustee against the costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction.

     (l) The Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the
pertinent facts.

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     Section 6.03 Individual Rights of Trustee

     The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or any of its Affiliates with the same rights it
would have if it were not Trustee. Any Agent may do the same with like rights. However, the
Trustee is subject to Sections 6.10 and 6.11 hereof.

     Section 6.04 Trustee’s Disclaimer

     The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities
or any money paid to the Company or upon the Company’s direction under any provision hereof, it
shall not be responsible for the use or application of any money received by any Paying Agent other
than the Trustee and it shall not be responsible for any statement or recital herein or any
statement in the Securities other than its certificate of authentication.

     Section 6.05 Notice of Defaults

     If a Default or Event of Default occurs and is continuing and it is actually known to a
Responsible Officer of the Trustee, the Trustee shall mail to Holders a notice of the Default or
Event of Default within 90 days after it occurs. Except in the case of a Default or Event of
Default in payment of principal of, or premium, if any, or interest on any Security, the Trustee
may withhold the notice if and so long as a committee of its Responsible Officers in good faith
determines that withholding the notice is in the interests of Holders.

     Section 6.06 Reports by Trustee to Holders

     On or before July 15 of each year, beginning with July 15, 2006, the Trustee shall mail to
Holders a brief report dated as of a date convenient to the Trustee no more than 60 nor less than
45 days prior thereto, that complies with TIA Section 313(a); provided, however, that if no event
described in TIA Section 313(a) has occurred within the twelve months preceding the reporting date,
no report need be transmitted. The Trustee also shall comply with TIA Section 313(b). The Trustee
shall also transmit by mail all reports as required by TIA Sections 313(c) and 313(d).

     A copy of each report at the time of its mailing to Holders shall be filed with the SEC and
each securities exchange, if any, on which the Securities are listed. The Company shall notify the
Trustee if and when the Securities are listed on any stock exchange or delisted therefrom.

     Section 6.07 Compensation and Indemnity

     The Company agrees to pay to the Trustee from time to time such compensation as agreed to by
the Company and the Trustee, for its acceptance of this Indenture and its services hereunder. The
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. The Company agrees to reimburse the Trustee upon request for all reasonable disbursements,
advances and expenses incurred by it. Such expenses shall include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

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     The Company agrees to fully indemnify the Trustee or any predecessor Trustee and their agents
for and to hold them harmless against any and all loss, liability damage, claims, or expense
(including taxes, other than taxes based upon, measured by or determined by the income of the
Trustee) incurred by it arising out of or in connection with the acceptance or administration of
its duties under this Indenture, including the costs and expenses of defending itself against any
claim (whether asserted by the Company, any Holder or any other Person), except as set forth in the
next paragraph. The Trustee shall notify the Company promptly of any claim for which it may seek
indemnity. The Company shall defend the claim and the Trustee shall cooperate in the defense. The
Trustee may have separate counsel, and the Company shall pay the reasonable fees and expenses of
such counsel. The Company need not pay for any settlement made without its consent, which consent
shall not be unreasonably withheld.

     The Company shall not be obligated to reimburse any expense or indemnify against any loss or
liability incurred by the Trustee through its own negligence or bad faith.

     To secure the payment obligations of the Company in this Section 6.07, the Trustee shall have
a lien prior to the Securities on all money or property held or collected by the Trustee, except
that held in trust to pay principal of, and premium, if any, and interest and on particular
Securities. Such lien shall survive the satisfaction and discharge of this Indenture.

     Without prejudice to any other rights available to the Trustee under applicable law, when the
Trustee incurs expenses or renders services after an Event of Default specified in Section 5.01(4)
or (5) hereof occurs, the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

     The obligations of the Company under this Section shall survive the satisfaction and discharge
of this Indenture and the resignation or removal of the Trustee.

     Section 6.08 Replacement of Trustee

     A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
6.08.

     The Trustee may resign and be discharged from the trust hereby created by so notifying the
Company. The Holders of a majority in principal amount of the then outstanding Securities may
remove the Trustee by so notifying the Trustee and the Company. The Company may remove the Trustee
if:

     (1) the Trustee fails to comply with Section 6.10 hereof;

     (2) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

     (3) a Custodian or public officer takes charge of the Trustee or its property; or

     (4) the Trustee otherwise becomes incapable of acting.

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     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the Securities
then outstanding may appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

     If a successor Trustee does not take office within 30 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of at least 10% in principal amount
of the Securities then outstanding may petition (at the expense of the Company) any court of
competent jurisdiction at the expense of the Company for the appointment of a successor Trustee.

     If the Trustee fails to comply with Section 6.10 hereof, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 6.07 hereof. Notwithstanding
replacement of the Trustee pursuant to this Section 6.08 hereof, the obligations of the Company
under Section 6.07 hereof shall continue for the benefit of the retiring Trustee.

     Section 6.09 Successor Trustee by Merger, etc

     Subject to Section 6.10 hereof, if the Trustee consolidates, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee; provided, however,
that in the case of a transfer of all or substantially all of its corporate trust business to
another corporation, the transferee corporation expressly assumes all of the Trustee’s liabilities
hereunder.

     In case any Securities shall have been authenticated, but not delivered, by the Trustee then
in office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities so authenticated; and in case at that time any
of the Securities shall not have been authenticated, any successor to the Trustee may authenticate
such Securities either in the name of any predecessor hereunder or in the name of the successor to
the Trustee; and in all such cases such certificates shall have the full force which it is anywhere
in the Securities or in this Indenture provided that the certificate of the Trustee shall have.

     Section 6.10 Eligibility; Disqualification

     There shall at all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States of America, any State thereof or the District of
Columbia and authorized under such laws to exercise corporate trust power, shall be subject to

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supervision or examination by federal or State (or the District of Columbia) authority and shall have, or be a Subsidiary of a bank or bank holding company having, a combined capital and surplus of at least $50 million as set forth in its most recent published annual report of condition.

     This Indenture shall always have a Trustee who satisfies the requirements of TIA Sections 310(a)(1), 310(a)(2) and 310(a)(5). The Trustee is subject to and shall comply with the provisions of TIA Section 310(b) during the period of time required by this Indenture. Nothing in this Indenture shall prevent the Trustee from filing with the SEC the application referred to in the penultimate paragraph of TIA Section 310(b). For purposes of clause (i) of the proviso to TIA Section 310(b), the following indentures are specifically described: the Senior Indenture dated as of July 15, 1996 between the Company and JPMorgan Chase Bank, N.A., as successor trustee, the Senior Indenture dated as of January 16, 1998 between the Company and JPMorgan Chase Bank, N.A., as successor trustee, the Indenture dated as of August 17, 2001 between the Company and JPMorgan Chase Bank, N.A., as successor trustee, the Indenture dated as of July 3, 2002 between the Company and JPMorgan Chase Bank, N.A., as successor trustee, and the Indenture dated as of December 17, 2004 between the Company and JPMorgan Chase Bank, N.A.

     Section 6.11Preferential Collection of Claims Against Company

     The Trustee is subject to and shall comply with the provisions of TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated therein.

ARTICLE VII

DISCHARGE OF INDENTURE

     Section 7.01 Termination of Company’s Obligations

     (a) This Indenture shall cease to be of further effect (except that the Company’s obligations
under Section 6.07 hereof and the Trustee’s and Paying Agent’s obligations under Sections 7.02 and
7.03 hereof shall survive), and the Trustee, on demand of the Company, shall execute proper
instruments acknowledging the satisfaction and discharge of this Indenture and the Securities,
when:

     (1) either

     (A) all outstanding Securities theretofore authenticated and issued (other
than destroyed, lost or stolen Securities that have been replaced or paid) have
been delivered to the Trustee for cancellation; or

     (B) all outstanding Securities not theretofore delivered to the Trustee for
cancellation:

     (i) have become due and payable,

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     (ii) will become due and payable at their Stated Maturity within one
year, or

     (iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company,

and the Company, in the case of clause (i), (ii) or (iii) above, has deposited or
caused to be deposited with the Trustee as funds (immediately available to the
Holders in the case of clause (i)) in trust for such purpose an amount that will be
sufficient to pay and discharge the entire indebtedness on the Securities for
principal, premium, if any, and interest to the date of such deposit (in the case
of Securities which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;

     (2) the Company has paid all other sums payable by it hereunder; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to satisfaction and discharge of this Indenture have been complied
with, together with an Opinion of Counsel to the same effect.

     (b) The Company may, subject as provided herein, terminate all of its obligations under this
Indenture with respect to the Securities if:

     (1) the Company has irrevocably deposited or caused to be irrevocably deposited with
the Trustee as trust funds in trust for the purpose of making the following payments
dedicated solely to the benefit of the Holders (i) cash in an amount sufficient, or (ii)
U.S. Government Obligations, the principal of interest on which is sufficient or (iii) a
combination thereof, sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to
the Trustee, to pay, without consideration of the reinvestment of any such amounts and
after payment of all taxes or other charges or assessments in respect thereof payable by
the Trustee, the principal of, and premium, if any, and interest on all Securities on each
date that such principal, premium, if any, or interest is due and payable and to pay all
other sums payable by it hereunder; provided that the Trustee shall have been irrevocably
instructed to apply such money and/or the proceeds of such U.S. Government Obligations to
the payment of said principal, premium, if any, and interest with respect to the Securities
as the same shall become due;

     (2) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to satisfaction and discharge of this Indenture with respect to the
Securities have been complied with, and an Opinion of Counsel to the same effect;

     (3) no Default or Event of Default shall have occurred and be continuing on the date
of such deposit or, insofar as clauses (4) and (5) of Section 5.01 hereof are concerned, at
any time during the period ending on the 91st day after the date of such

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deposit (it being understood that this condition shall not be deemed satisfied until
the expiration of such period);

     (4) the Company shall have delivered to the Trustee an Opinion of Counsel from a
nationally recognized counsel acceptable to the Trustee or a tax ruling to the effect that
the Holders of the Securities will not recognize income, gain or loss for federal income
tax purposes as a result of the Company’s exercise of its option under this Section 7.01(b)
and will be subject to federal income tax on the same amount and in the same manner and at
the same times as would have been the case if such option had not been exercised;

     (5) such deposit and discharge will not result in a breach or violation of, or
constitute a default under, any other agreement or instrument to which the Company is a
party or by which it is bound;

     (6) such deposit and discharge shall not cause the Trustee to have a conflicting
interest as defined in TIA Section 310(b);

     (7) the Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that after the passage of 91 days following the deposit, the trust funds will not be
subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar
laws affecting creditors’ rights generally; and

     (8) if the Securities are to be redeemed, the Company shall have irrevocably
instructed the Trustee to give notice of such redemption in the name, and at the expense,
of the Company, under arrangements satisfactory to the Trustee.

     In such event, this Indenture shall cease to be of further effect (except as provided in the
next succeeding paragraph).

     However, the Company’s obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 3.02, 4.01,
6.07, 6.08, 7.01 and 7.04 hereof and the Trustee’s and Paying Agent’s obligations in Sections 7.02
and 7.03 hereof shall survive until the Securities are no longer outstanding. Thereafter, only the
Company’s obligations in Section 6.07 hereof and the Trustee’s and Paying Agent’s obligations in
Sections 7.02 and 7.03 hereof shall survive such satisfaction and discharge.

     After such irrevocable deposit made pursuant to this Section 7.01(b) and satisfaction of the
other conditions set forth herein, the Trustee upon request shall acknowledge in writing the
discharge of the Company’s obligations under this Indenture except for those surviving obligations
specified above.

     In order to have money available on a payment date to pay principal of, premium, if any, or
interest on the Securities, the U.S. Government Obligations shall be payable as to principal or
interest on or before such payment date in such amounts as will provide the necessary money. U.S.
Government Obligations shall not be callable at the issuer’s option.

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     Section 7.02 Application of Trust Money

     The Trustee or a trustee satisfactory to the Trustee and the Company shall hold in trust money
or U.S. Government Obligations deposited with it pursuant to Section 7.01 hereof. It shall apply
the deposited money and the money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of, premium, if any, and interest on the
Securities.

     Section 7.03 Repayment to Company

     The Trustee and the Paying Agent shall promptly pay to the Company upon written request any
excess money or securities held by them at any time.

     Subject to the requirements of any applicable abandoned property laws, the Trustee and the
Paying Agent shall pay to the Company upon written request any money held by them for the payment
of principal, premium, if any, or interest that remains unclaimed for two years after the date upon
which such payment shall have become due; provided, however, that the Company shall have either
caused notice of such payment to be mailed to each Holder entitled thereto no less than 30 days
prior to such repayment or within such period shall have published such notice in a financial
newspaper of widespread circulation published in The City of New York. After payment to the
Company, Holders entitled to the money must look to the Company for payment as
general creditors unless an applicable abandoned property law designates another Person, and
all liability of the Trustee and the Paying Agent with respect to such money shall cease.

     Section 7.04 Reinstatement

     If the Trustee or the Paying Agent is unable to apply any money or U.S. Government Obligations
in accordance with Section 7.01 hereof by reason of any legal proceeding or by reason of any order
or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the obligations of the Company under this Indenture and the Securities shall be
revived and reinstated as though no deposit had occurred pursuant to Section 7.01 hereof until such
time as the Trustee or the Paying Agent is permitted to apply all such money or U. S. Government
Obligations in accordance with Section 7.01 hereof; provided, however, that if the Company has made
any payment of principal of or interest on any Securities because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of such Securities to
receive such payment from the money or U.S. Government Obligations held by the Trustee or the
Paying Agent.

ARTICLE VIII

AMENDMENTS

     Section 8.01 Without Consent of Holders

     The Company and the Trustee may amend or supplement this Indenture or any of the Securities or
waive any provision hereof or thereof without the consent of any Holder:

     (1) to cure any ambiguity, omission, defect or inconsistency;

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     (2) to comply with Sections 4.01 and 4.02 hereof;

     (3) to provide for uncertificated Securities in addition to or in place of
certificated Securities;

     (4) to add any additional Events of Default;

     (5) to add to, change or eliminate any of the provisions of this Indenture to such
extent as shall be necessary to permit or facilitate the issuance of Securities in bearer
form, registrable or not registrable as to principal, and with or without interest coupons;

     (6) to provide for the acceptance of appointment hereunder of a successor trustee in
compliance with the provisions hereof;

     (7) to secure the Securities pursuant to the requirements of Section 3.05 or
otherwise;

     (8) to comply with any requirement in order to effect or maintain the qualification of
this Indenture under the TIA;

     (9) to comply with any requirements of the SEC in connection with qualifying this
Indenture under the TIA;

     (10) to add to the covenants of the Company for the benefit of the Holders or to
surrender any right or power herein conferred upon the Company; or

     (11) to make any change that does not adversely affect the rights hereunder of any
Holder in any material respect.

     Upon the request of the Company accompanied by a resolution of the Board of Directors of the
Company authorizing the execution of any such supplemental indenture, and upon receipt by the
Trustee of the documents described in Section 8.06 hereof, the Trustee shall join with the Company
in the execution of any supplemental indenture authorized or permitted by the terms of this Section
and make any further appropriate agreements and stipulations that may be therein contained. After
an amendment, supplement or waiver under this Section 8.01 becomes effective, the Company shall
mail to the Holders of each Security affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture.

     Section 8.02 With Consent of Holders

     Except as provided below in this Section 8.02, the Company and the Trustee may amend or
supplement this Indenture or the Securities with the written consent (including consents obtained
in connection with a tender offer or exchange offer for the Securities or a solicitation of
consents in respect of the Securities, provided that in each case such offer or solicitation is
made to all Holders of the Securities then outstanding on equal terms) of the Holders of at least a
majority in principal amount of the Securities then outstanding.

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     Upon the request of the Company accompanied by a resolution of the Board of Directors of the
Company authorizing the execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of the Holders as aforesaid, and upon receipt by the Trustee of
the documents described in Section 8.06 hereof, the Trustee shall join with the Company in the
execution of such supplemental indenture.

     It shall not be necessary for the consent of the Holders under this Section 8.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof.

     The Holders of a majority in principal amount of the Securities then outstanding may waive
compliance in a particular instance by the Company with any provision of this Indenture or the
Securities (including waivers obtained in connection with a tender offer
or exchange offer for the Securities or a solicitation of consents in respect of the
Securities, provided that in each case such offer or solicitation is made to all Holders of the
Securities then outstanding on equal terms).

     Without the consent of each Holder affected, an amendment, supplement or waiver under this
Section may not:

     (1) reduce the percentage of principal amount of the Securities whose Holders must
consent to an amendment, supplement or waiver;

     (2) reduce the rate of or change the time for payment of interest, including default
interest, on any Security;

     (3) reduce the principal of or change the fixed maturity of any Security or alter the
premium or other provisions with respect to redemption under Section 9.07 or specified in
the Securities;

     (4) change the place of payment or make any Security payable in money other than that
stated in the Security;

     (5) impair the right to institute suit for the enforcement of any payment of principal
of, or premium, if any, or interest on any Security pursuant to Sections 5.07 and 5.08
hereof, except as limited by Section 5.06 hereof;

     (6) make any change in the percentage of principal amount of the Securities necessary
to waive compliance with certain provisions of this Indenture pursuant to Section 5.04 or
5.07 hereof or this clause of this Section 8.02; or

     (7) waive a continuing Default or Event of Default in the payment of principal of, or
premium, if any, or interest on the Securities.

     Section 8.03 Compliance with Trust Indenture Act

     Every amendment to this Indenture or the Securities shall comply in form and substance with
the TIA as then in effect.

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     Section 8.04 Revocation and Effect of Consents

     A consent to an amendment (which includes a supplement) or waiver by a Holder is a continuing
consent by the Holder and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not
made on any Security. However, any such Holder or subsequent Holder may revoke the consent as to
his or her Security or portion of a Security if the Trustee receives written notice of revocation
at any time prior to (but not after) the date the Trustee receives an Officers’ Certificate
certifying that the Holders of the requisite principal amount of Securities have consented (and not
theretofore revoked such consent) to the amendment, supplement or waiver. An amendment, supplement
or waiver becomes effective in accordance with its terms and thereafter binds every Holder.

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment or waiver or to take any other action
under this Indenture. If a record date is fixed, then notwithstanding the provisions of the
immediately preceding paragraph, those Persons who were Holders at such record date (or their duly
designated proxies), and only those Persons, shall be entitled to consent to such amendment,
supplement or waiver or to revoke any consent previously given, whether or not such Persons
continue to be Holders after such record date. No consent shall be valid or effective for more
than 90 days after such record date unless consents from Holders of the principal amount of the
Securities required hereunder for such amendment or waiver to be effective shall have also been
given and not revoked within such 90-day period.

     After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless
it is of the type described in any of clauses (1) through (7) of Section 8.02 hereof. In such
case, the amendment or waiver shall bind each Holder who has consented to it and every subsequent
Holder that evidences the same debt as the consenting Holder’s Security.

     Section 8.05 Notation on or Exchange of Securities

     If an amendment changes the terms of a Security, the Trustee may require the Holder of the
Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the
Security regarding the changed terms and return it to the Holder. Alternatively, if the Company or
the Trustee so determines, the Company in exchange for the Security shall issue and the Trustee
shall authenticate a new Security that reflects the changed terms. Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such amendment.

     Section 8.06 Trustee to Sign Amendments, etc.

     The Trustee shall sign any amendment, waiver or supplemental indenture authorized pursuant to
this Article if the amendment, waiver or supplemental indenture does not adversely affect the
rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, but need
not, sign it. In signing or refusing to sign such amendment, waiver or supplemental indenture, the
Trustee shall receive, and subject to Section 6.01 hereof, shall be fully protected in relying
upon, an Opinion of Counsel and an Officers’ Certificate, as conclusive evidence that such
amendment, waiver or supplemental indenture is authorized or permitted by this Indenture,

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that it is not inconsistent herewith, and that it will be valid and binding upon the Company
in accordance with its terms.

ARTICLE IX

REDEMPTION

     Section 9.01 Notices to Trustee

     If the Company elects to redeem Securities pursuant to the redemption provisions of Section
9.07, it shall furnish to the Trustee, at least 45 days but not more than 60 days before a
Redemption Date (unless the Trustee consents in writing to a shorter period of at least 30 days
prior to the Redemption Date), an Officers’ Certificate setting forth the Redemption Date and the
principal amount of such Securities to be redeemed.

     Section 9.02 Selection of Securities to be Redeemed

     If less than all of the Securities are to be redeemed, the Trustee shall select the Securities
to be redeemed by such method as the Trustee in its sole discretion shall deem appropriate. The
particular Securities to be redeemed shall be selected, unless otherwise provided herein, not less
than 30 days nor more than 60 days prior to the Redemption Date by the Trustee from the outstanding
Securities not previously called for redemption.

     The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Security selected for partial redemption, the principal amount
thereof to be redeemed. Securities and portions of them selected shall be in amounts of $2,000 or
integral multiples of $1,000 in excess of $2,000. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption.

     Section 9.03 Notices to Holders

     (a) At least 30 days but not more than 60 days before a Redemption Date, the Company shall
mail in conformity with Section 10.02 a notice of redemption to each Holder whose Securities are to
be redeemed.

     The Notice shall identify the Securities to be redeemed (including CUSIP numbers, if any) and
shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price, or if not yet known, the manner in which it will be
calculated;

     (iii) if any Security is being redeemed in part, the portion of the principal amount
of such Security to be redeemed and that, after the Redemption Date, upon surrender of such
Security, a new Security or Securities in principal amount equal to the unredeemed portion
will be issued;

43

 

     (iv) the name and address of the Paying Agent;

     (v) that Securities called for redemption must be surrendered to the Paying Agent at
the address specified in such notice to collect the Redemption Price;

     (vi) that unless the Company defaults in making the redemption payment, interest on
Securities called for redemption ceases to accrue on and after the Redemption Date and the
only remaining right of the Holders is to receive payment of the Redemption Price upon
surrender to the Paying Agent of the Securities; and

     (vii) the aggregate principal amount of Securities being redeemed.

     If any of the Securities to be redeemed is in the form of a Global Security, then the Company
shall modify such notice to the extent necessary to accord with the procedures of the Depositary
applicable to redemptions.

     The Trustee shall not be responsible for the calculation of the Redemption Price. The Company
shall notify the Trustee of the Redemption Price promptly after the calculation thereof.

     (b) At the Company’s request, the Trustee shall give the notice required in Section 9.03(a) in
the Company’s name; provided, however, that the Company shall deliver to the Trustee, at least 45
days prior to the Redemption Date (unless the Trustee consents in writing to a shorter period at
least 30 days prior to the Redemption Date), an Officers’ Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice as provided in
Section 9.03(a).

     Section 9.04 Effect of Notices of Redemption

     Once notice of redemption is mailed pursuant to Section 9.03, Securities called for redemption
become due and payable on the Redemption Date at the Redemption Price. Upon surrender to the
Paying Agent, such Securities shall be paid out at the Redemption Price.

     Section 9.05 Deposit of Redemption Price

     At or prior to 11:00 am New York City time on the Redemption Date, the Company shall deposit
with the Trustee or with the Paying Agent money sufficient to pay the Redemption Price of all
Securities to be redeemed on that date. The Trustee or the Paying Agent shall return to the
Company any money not required for that purpose less the expenses of the Trustee as provided
herein.

     If the Company complies with the preceding paragraph, interest on the Securities or portions
thereof to be redeemed (whether or not such Securities are presented for payment) will cease to
accrue on the applicable Redemption Date. If any Security called for redemption shall not be so
paid upon surrender because of the failure of the Company to comply with the preceding paragraph,
then interest will be paid on the unpaid principal and premium, if any, from the Redemption Date
until such principal and premium are
paid and, to the extent lawful, on any interest not paid on such unpaid principal, in each
case at the rate provided in the Securities and in Section 3.01.

44

 

     Section 9.06 Securities Redeemed in Part

     Upon surrender of a Security that is redeemed in part, the Company shall issue and the Trustee
shall authenticate for the Holder, at the expense of the Company, a new Security equal in principal
amount to the unredeemed portion of the Security surrendered.

     Section 9.07 Optional Redemption

     The Securities may be redeemed at any time, at the option of the Company, in whole or from
time to time in part, at the Redemption Price specified in such Securities.

     Any redemption pursuant to this Section 9.07 shall be made, to the extent applicable, pursuant
to the provisions of Sections 9.01 through 9.06.

ARTICLE X

MISCELLANEOUS

     Section 10.01 Trust Indenture Act Controls

     If any provision of this Indenture limits, qualifies or conflicts with another provision which
is required to be included in this Indenture by the TIA if this Indenture were qualified
thereunder, the required provision shall control. If this Indenture excludes any provision of the
TIA that is required to be included if this Indenture were qualified thereunder, such provision
shall be deemed included herein.

     Section 10.02 Notices

     Any notice or communication to the Company or the Trustee hereunder is duly given if in
writing and delivered in person or mailed by first-class mail (registered or certified, return
receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the
applicable address set forth below:

If to the Company:

Transcontinental Gas Pipe Line Corporation

2800 Post Oak Blvd.

Houston, Texas 77056

Telecopier No.: (713) 215-2435

Attention: Treasurer

If to the Trustee:

JPMorgan Chase Bank, N.A.

4 New York Plaza

15th Floor

New York, New York 10004

Telecopier No.: (212) 623-6167

45

 

Attention: Worldwide Securities Services

     Each of the Company and the Trustee by notice to the others may designate additional or
different addresses for subsequent notices or communications.

     All notices and communications shall be deemed to have been duly given: at the time delivered
by hand, if personally delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if telecopied; and the next Business Day after
timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.
Notwithstanding the foregoing, notices to the Trustee shall be effective only upon receipt.

     Any notice or communication to a Holder shall be mailed by first-class mail, postage prepaid,
to the Holder’s address shown on the register kept by the Registrar. Failure to mail a notice or
communication to a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.

     If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

     If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.

     All notices or communications, including without limitation notices to the Trustee or the
Company by Holders, shall be in writing, except as set forth below, and in the English language.

     In case by reason of the suspension of regular mail service, or by reason of any other cause,
it shall be impossible to mail any notice required by this Indenture, then such method of
notification as shall be made with the approval of the Trustee shall constitute a sufficient
mailing of such notice.

     Section 10.03 Communication by Holders with Other Holders

     Holders may communicate pursuant to TIA Section 312(b) with other Holders with respect to
their rights under this Indenture or the Securities. The Company, the Trustee, the Registrar and
anyone else shall have the protection of TIA Section 312(c).

     Section 10.04 Certificate and Opinion as to Conditions Precedent

     Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall, if requested by the Trustee, furnish to the Trustee:

     (1) an Officers’ Certificate (which shall include the statements set forth in Section
10.05 hereof) stating that, in the opinion of the signers, all conditions precedent and
covenants, if any, provided for in this Indenture relating to the proposed action have been
complied with; and

46

 

     (2) an Opinion of Counsel (which shall include the statements set forth in Section
10.05 hereof) stating that, in the opinion of such counsel, all such conditions precedent
and covenants have been complied with.

     Notwithstanding the foregoing, no such Opinion of Counsel shall be required in connection with
the issuance of the Securities on the Initial Issue Date.

     Section 10.05 Statements Required in Certificate or Opinion

     Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

     (1) a statement that the Person making such certificate or opinion has read such
covenant or condition;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (3) a statement that, in the opinion of such Person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or
not such covenant or condition has been complied with; and

     (4) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been complied with.

     Section 10.06 Rules by Trustee and Agents

     The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or the Paying Agent may make reasonable rules and set reasonable requirements for its functions.

     Section 10.07 Legal Holidays

     Except as provided in the Securities, if a payment date is a Legal Holiday at a place of
payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period.

     Section 10.08 No Recourse Against Others

     A director, officer, employee or stockholder of the Company as such, shall not have any
liability for any obligations of the Company under the Securities or this
Indenture or for any claim based on, in respect of or by reason of such obligations or their
creation. Each Holder by accepting a Security waives and releases all such liability. The waiver
and release shall be part of the consideration for the issue of the Securities.

47

 

     Section 10.09 Governing Law

     This Indenture and the Securities shall be governed by and constructed in accordance with the
laws of the State of New York.

     Section 10.10 No Adverse Interpretation of Other Agreements

     This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company, or any other Subsidiary of the Company. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.

     Section 10.11 Successors

     All agreements of the Company in this Indenture and the Securities shall bind its successors.
All agreements of the Trustee in this Indenture shall bind its successors.

     Section 10.12 Severability

     In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     Section 10.13 Counterpart Originals

     The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

     Section 10.14 Table of Contents, Headings, etc

     The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part
hereof and shall in no way modify or restrict any of the terms or provisions hereof.

[Signature Page Follows]

48

 

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

	 	 	 	 	 
	 	Company :

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

 	 
	 	By:  	/s/  Richard D. Rodekohr
 	 
	 	 	Name:  	Richard D. Rodekohr 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	Trustee :

JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ Joanne Adamis
 	 
	 	 	Name:  	Joanne Adamis 	 
	 	 	Title:  	Vice President 	 
	 

49

 

EXHIBIT A

[FACE OF SECURITY]

[Global Securities Legend]

     [UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
THE DEPOSITORY TRUST COMPANY SHALL ACT AS THE DEPOSITARY UNTIL A SUCCESSOR SHALL BE APPOINTED BY
THE COMPANY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]1

     [THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES
ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT
AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN,
THE HOLDER:

     (1) REPRESENTS THAT (A) IT IS A QUALIFIED INSTITUTIONAL BUYER, AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT, OR (B) IT HAS ACQUIRED THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE
WITH REGULATION S UNDER THE SECURITIES ACT;

     (2) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS SECURITY, EXCEPT (A) TO
TRANSCONTINENTAL GAS PIPE LINE CORPORATION OR ANY OF ITS SUBSIDIARIES, (B) TO A PERSON WHOM THE
SELLER

 

			
	1	 	This paragraph should be included only if the
Security is a Global Security.

A -1

 

REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER PURCHASING FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (C) IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF THE SECURITIES ACT,
(D) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, OR (E) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH OF THE CASES, IN ACCORDANCE WITH THE APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION;

     (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY OR AN INTEREST HEREIN IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; AND

     (4) AGREES THAT, BEFORE THE HOLDER OFFERS, SELLS OR OTHERWISE TRANSFERS THIS SECURITY,
TRANSCONTINENTAL GAS PIPE LINE CORPORATION MAY REQUIRE THE HOLDER OF THIS SECURITY TO DELIVER A
WRITTEN OPINION, CERTIFICATIONS AND/OR OTHER INFORMATION THAT IT REASONABLY REQUIRES TO CONFIRM
THAT SUCH PROPOSED TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE UNITED STATES.

     AS USED IN THIS SECURITY, THE TERMS “OFFSHORE TRANSACTION,” “U.S. PERSON” AND “UNITED STATES”
HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE
SECURITIES ACT.]
2

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

6.40% Senior Note due 2016

CUSIP [ ___________]

			
	No. [RA] [RS] [R] –                                         
	 	$___

     Transcontinental Gas Pipe Line Corporation, a Delaware corporation (the “Company”), for value
received promises to pay to                                                              or registered assigns, the principal sum of
                                         United States Dollars [or such greater or lesser amount as is indicated on the Schedule
of Exchanges of Securities on the other side of this Security] 3 on April 15, 2016 (the
“Stated Maturity Date”).

 

			
	2	 	This legend shall not be included in Exchange
Notes.
	 
	3	 	This phrase should be included only if the Security
is a Global Security.

A -2

 

	 	 	 	 	 
	 

	 	Initial Issue Date:
	 	April 11, 2006
	 
	 	 	 	 
	 

	 	Interest Payment Dates:
	 	April 15 and October 15, beginning October 15, 2006
	 
	 	 	 	 
	 

	 	Record Dates:
	 	April 1 and October 1

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     IN WITNESS WHEREOF, the Company has caused this Security to be signed manually or by facsimile
by its duly authorized officer.

     Dated:                                         

	 	 	 	 	 	 	 
	 	 	TRANSCONTINENTAL GAS PIPE LINE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Certificate of Authentication:

JPMORGAN CHASE BANK, N.A., as Trustee, certifies that this is one of the Securities referred to in
the within-mentioned Indenture.

	 	 	 	 	 
	By:

	 	 	 	 
	 	 	 	 	 
	 

	 	Authorized Officer	 	 

A -3

 

[REVERSE OF SECURITY]

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

6.40% Senior Note due 2016

     This Security is one of a duly authorized issue of 6.40% Senior Notes due 2016 (the
“Securities”) of Transcontinental Gas Pipe Line Corporation, a Delaware corporation (the
“Company”).

     1. Interest. The Company promises to pay interest on the principal amount of this Security at
the rate of 6.40% per annum from April 11, 2006 until maturity. The Company will pay interest
semiannually on April 15 and October 15 of each year (each an “Interest Payment Date”). Interest
on the Securities will accrue from the most recent Interest Payment Date on which interest has been
paid or duly provided for or, if no interest has been paid or duly provided for, from April 11,
2006; provided that if there is no existing default in the payment of interest, and if this
Security is authenticated between a record date set forth on the face hereof (each a “Record Date”)
and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding
Interest Payment Date; provided, further, that the first Interest Payment Date shall be October 15,
2006 and interest accrued from April 11, 2006 shall be payable on such date. Further, the Company
shall pay interest on overdue principal and premium, if any, from time to time on demand at a rate
equal to the interest rate then in effect; it shall pay interest on overdue installments of
interest (without regard to any applicable grace periods) from time to time on demand at the same
rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve
30-day months.

     If an Interest Payment Date, the Stated Maturity Date or a Redemption Date falls on a day that
is not a Business Day, payment of principal and interest due on that date shall be made on the next
following day that is a Business Day and no interest shall accrue for the period from and after the
Interest Payment Date, Stated Maturity Date or such Redemption Date, as the case may be, on the
payment so deferred.

     Interest payments on this Security will include interest accrued to but excluding the Interest
Payment Dates or the Stated Maturity Date (or any Redemption Date), as the case may be.

     [Holders of Securities are entitled to the benefits of a registration rights agreement, dated
as of April 11, 2006, between the Company and the Initial Purchasers named therein (the
“Registration Rights Agreement”). In the event that a Registration Default (as defined in the
Registration Rights Agreement) occurs, additional interest (“Additional Interest “) will accrue on
the affected Transfer Restricted Securities (as defined in the Registration Rights Agreement). The
rate of Additional Interest will be 0.25% per annum on the principal amount of the Transfer
Restricted Securities held by such Holder for the first 90-day period immediately following the
occurrence of a Registration Default, increasing by an additional 0.25% per annum on the principal
amount of the Transfer Restricted Securities with respect to each subsequent 90-day period
thereafter up to a maximum amount of Additional Interest for all Registration Defaults of

A -4

 

0.50% per annum, from and including the date on which any such Registration Default shall occur to,
but excluding, the earlier of (1) the date on which all Registration Defaults have been cured or
(2) the date on which all Transfer Restricted Securities otherwise become freely transferrable by
Holders other than Affiliates of the Company without further registration under the Securities Act.
Pursuant to the Registration Rights Agreement the Company shall not be required to pay Additional
Interest with respect to more than one Registration Default at any one time. Additional Interest
shall be payable to the same Persons, at the same times and in the same manner as ordinary
interest.] 4

     2. Method of Payment. The Company will pay interest on the Securities (except defaulted
interest) to the Persons who are registered Holders of Securities at the close of business on the
Record Date next preceding the Interest Payment Date (whether or not a Business Day), even if such
Securities are canceled after such Record Date and on or before such Interest Payment Date. The
Holder must surrender this Security to a Paying Agent to collect payments of principal and;
provided, that, installments of interest payable on a Redemption Date or on the Stated Maturity
Date shall be payable to the Persons to whom principal of the Securities are payable, premium, if
any. The Company will pay the principal of, and premium, if any, and interest on the Securities in
money of the United States of America that at the time of payment is legal tender for payment of
public and private debts. Payments in respect of the Securities represented by a Global Security
(including principal, premium, if any, and interest) will be made by wire transfer of immediately
available funds to the accounts specified by The Depository Trust Company. The Company will make
all payments in respect of a certificated Security (including principal, premium, if any, and
interest) by mailing a check to the registered address of each Holder thereof; provided, however,
that payments on a certificated Security will be made by wire transfer to a U.S. dollar account
maintained by the payee with a bank in the United States if such Holder elects payment by wire
transfer by giving written notice to the Trustee or the Paying Agent to such effect designating
such account no later than 30 days immediately preceding the relevant due date for payment (or such
other date as the Trustee may accept in its discretion).

     3. Ranking. The Securities are senior unsecured obligations of the Company.

     4. Optional Redemption. The Securities may be redeemed at any time, at the option of the
Company, in whole or from time to time in part, at a price equal to the sum of (i) 100% of the
principal amount of the Securities to be redeemed, plus accrued and unpaid interest thereon to the
Redemption Date, if any; plus (ii) the Make-Whole Amount (defined below).

     “Make-Whole Amount” means the excess, if any, of: (i) the aggregate present value as of the
Redemption Date of each dollar of principal being redeemed and the amount of interest (exclusive of
interest accrued to the Redemption Date) that would have been payable in respect of such dollar if
such redemption had not been made, determined by discounting, on a

 

			
	4	 	Do not include in Exchange Notes.

A -5

 

semiannual basis, such principal and interest at the Treasury Rate (defined below) (determined
on the Business Day preceding the Redemption Date) plus 0.35%, from the respective dates on which
such principal and interest would have been payable if such redemption had not been made; over (ii)
the principal amount of the Security being redeemed.

     “Treasury Rate” means, in connection with the calculation of any Make-Whole Amount with
respect to any Security, the yield to maturity at the time of computation of United States Treasury
securities with a constant maturity, as compiled by and published in the most recent Federal
Reserve Statistical Release H.15 (519) that has become publicly available at least two Business
Days prior to the Redemption Date (or, if such statistical release is no longer published, any
publicly available source of similar market data), equal to the then remaining maturity of the
Security being prepaid. If no maturity exactly corresponds to such maturity, yields for the
published maturities occurring prior to and after such maturity most closely corresponding to such
maturity shall be calculated pursuant to the immediately preceding sentence and the Treasury Rate
shall be interpolated or extrapolated from such yields on a straight-line basis, rounding in each
of such relevant periods to the nearest month.

     Periodic interest installments with respect to which the Interest Payment Date is prior to any
Redemption Date will be payable to Holders of record at the close of business on the relevant
Record Dates referred to herein, all as provided in the Indenture.

     Notice of redemption will be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder of Securities to be redeemed at his registered address. Securities
in denominations larger than $2,000 may be redeemed in part but only in integral multiples of
$1,000 and only to the extent that the Securities that remain outstanding following such redemption
will have denominations of at least $2,000. On or after the Redemption Date interest will cease to
accrue on Securities or on the portions thereof called for redemption, as the case may be.

     The Trustee shall not be responsible for the calculation of the Redemption Price. The Company
shall notify the Trustee of the Redemption Price promptly after the calculation thereof.

     5. Paying Agent and Registrar. Initially, JPMorgan Chase Bank, N.A. (the “Trustee”), the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any
Paying Agent and Registrar, co-registrar or additional paying agent without notice to any Holder.
The Company or any of its subsidiaries may act in any such capacity.

     6. Indenture. The Company issued the Securities under an Indenture dated as of April 11, 2006
(as amended, supplemented or otherwise modified form time to time, the “Indenture”) between the
Company and the Trustee. The terms of the Securities include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15
U.S. Code Sections 77aaa-77bbbb), as in effect on the date of execution of the Indenture (the
“TIA”). The Securities are subject to all such terms, and Holders are referred to the Indenture
and such Act for a statement of such terms. The Securities are unsecured general obligations of
the Company. Capitalized terms used but not defined in this Security have the respective meanings
given to such terms in the Indenture.

A -6

 

     7. Denominations, Transfer, Exchange. The Securities are in registered form without coupons
in denominations of $2,000 and integral multiples of $1,000 in excess of $2,000. The transfer of
Securities may be registered and Securities may be exchanged as provided in the Indenture. The
Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not exchange or register the transfer of any Securities during
the period between a Record Date and the corresponding Interest Payment Date.

     8. Persons Deemed Owners. Except as set forth in the Indenture, the registered Holder of a
Security shall be treated as its owner for all purposes.

     9. Amendments and Waivers. Subject to certain exceptions and limitations, the Indenture or
the Securities may be amended or supplemented with the consent of the Holders of at least a
majority in principal amount of the then outstanding Securities, and compliance in a particular
instance by the Company with any provision of the Indenture may be waived (other than certain
provisions, including any continuing Default or Event of Default in the payment of the principal
of, or premium, if any, or interest on the Securities) by the Holders of at least a majority in
principal amount of the Securities then outstanding in accordance with the terms of the Indenture.
Without the consent of any Holder, the Company and the Trustee may amend or supplement the
Indenture or the Securities to cure any ambiguity, omission, defect or inconsistency; to comply
with the Indenture in the case of the merger, consolidation or sale or other disposition of the
assets of the Company substantially as an entirety; to provide for uncertificated Securities in
addition to or in place of certificated Securities; to add any additional Events of Default; to
provide for the acceptance under the Indenture of a successor trustee in compliance with the
provisions thereof; to secure the Securities pursuant to the requirements under the Indenture; to
comply with any requirements in order to effect or maintain the qualification of the Indenture
under the Trust Indenture Act of 1939, as amended; to comply with any requirements of the SEC in
connection with qualifying the Indenture under the TIA; to add to the covenants of the Company for
the benefit of the Holders or to surrender any power conferred upon the Company; or to make any
change that does not adversely affect the rights of any Holder in any material respect.

     Without the consent of each Holder affected, the Company may not (i) reduce the percentage of
principal amount of Securities whose Holders must consent to an amendment, supplement or waiver,
(ii) reduce the rate of or change the time for payment of interest, including default interest, on
any Security, (iii) reduce the principal of or change the fixed maturity of any Security or alter
the premium or other provisions with respect to redemption, (iv) change the place of payment or
make any Security payable in money other than that stated in the Security, (v) impair the right to
institute suit for the enforcement of any payment of principal of, or premium, if any, or interest
on any Security, (vi) make any change in the percentage of principal amount of Securities necessary
to waive compliance with certain provisions of the Indenture or (vii) waive a continuing Default or
Event of Default in the payment of principal of, or premium, if any, or interest on the Securities.

     10. Defaults and Remedies. Events of Default include: default in payment of interest on the
Securities for 30 days; default in payment of principal of, or premium, if any, on the

A -7

 

Securities; default in the performance, or breach, of any of its other covenants, warranties
or agreements in the Indenture by the Company for 60 days after written notice by the Trustee or by
the Holders of at least 25% of the aggregate principal amount of the Securities then outstanding
(provided, however, that if such default is not capable of remedy within such 60-day period, such
60-day period shall be extended by an additional 60 days so long as (i) such default is subject to
cure and (ii) the Company is using commercially reasonable efforts to cure such default), subject
to the provisions of the Indenture; certain voluntary or involuntary events involving bankruptcy,
insolvency or reorganization of the Company. If an Event of Default occurs and is continuing, the
Trustee or the Holders of at least 25% in principal amount of the then outstanding Securities may
declare the principal of, and premium, if any, and accrued and unpaid interest on all the
Securities to be immediately due and payable, except that in the case of an Event of Default
arising from certain events of bankruptcy, insolvency or reorganization of the Company, all
outstanding Securities become due and payable immediately without further action or notice. The
amount due and payable upon the acceleration of any Security is equal to 100% of the principal
amount thereof plus premium, if any, and accrued interest to the date of payment. Holders may not
enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may
require indemnity reasonably satisfactory to it before it enforces the Indenture or the Securities.
Subject to certain limitations, Holders of a majority in principal amount of the then outstanding
Securities may direct the Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders notice of any continuing default (except a default in payment of principal or premium,
if any, or interest) if it determines that withholding notice is in their interests. The Company
must furnish an annual compliance certificate to the Trustee.

     11. Discharge Prior to Maturity. The Indenture shall be discharged and canceled upon the
payment of all of the Securities and shall be discharged except for certain obligations upon the
irrevocable deposit with the Trustee of funds or U.S. Government Obligations sufficient for such
payment.

     12. Trustee Dealings with the Company. The Trustee, in its individual or any other capacity,
may make loans to, accept deposits from, and perform services for the Company or its Affiliates,
and may otherwise deal with the Company or its Affiliates, as if it were not Trustee.

     13. No Recourse Against Others. A director, officer, employee or stockholder, as such, of the
Company shall not have any liability for any obligations of the Company under the Securities or the
Indenture or for any claim based on, in respect of or by reason of such obligations or their
creation. Each Holder by accepting a Security waives and releases all such liability. The waiver
and release are part of the consideration for the issuance of the Securities.

     14. Authentication. This Security shall not be valid until authenticated by the manual
signature of an authorized officer of the Trustee or an authenticating agent.

     15. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the
Securities as a convenience to the Holders of the Securities. No representation is made as to the
accuracy of such numbers as printed on the Securities and reliance may be placed only on the other
identification numbers printed thereon.

A -8

 

     16. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     17. Governing Law. The Indenture and the Securities shall be governed by and constructed in
accordance with, the laws of the State of New York.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Request may be made to:

Transcontinental Gas Pipe Line Corporation

2800 Post Oak Blvd.

Houston, Texas 77056

Telecopier No.: (713) 215-2435

Attention: Treasurer

A -9

 

ASSIGNMENT FORM

     To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security
to

 

 

(Insert assignee’s social security or tax I.D. number)

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint                                                              as agent to
transfer this Security on the books of the Company. The agent may substitute another to act for
him.

Date:                                         

	 	 	 
	Your Signature:
	 	 
	 

	 	 
	 

	 	(Sign exactly as your name appears on the face of this Security)

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Participant in a Recognized Signature Guaranty Medallion Program)

[In connection with any transfer of any of the Securities evidenced by this certificate occurring
prior to the expiration of the period referred to in Rule 144(k) under the Securities Act after the
later of the date of original issuance of such Securities and the last date, if any, on which such
Securities were owned by the Company or any Affiliate of the Company, the undersigned confirms that
such Securities are being transferred as specified below:

CHECK ONE

			
	(1) £	 	to the Company or a Subsidiary thereof; or

			
	(2) £	 	to a “qualified institutional buyer” (as defined in Rule 144A under the Securities
Act of 1933) that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that such transfer is being made in reliance on
Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act
of 1933; or

			
	(3) £	 	outside the United States to a “foreign person” in compliance with Rule 904 of
Regulation S under the Securities Act of 1933; or

			
	(4) £	 	pursuant to an effective registration statement under the Securities Act of 1933; or

A-10

 

			
	(5) £	 	pursuant to an exemption from the registration requirements of the Securities Act of
1933, provided by Rule 144 thereunder.

and unless the box below is checked, the undersigned confirms that such Security is not being
transferred to an “affiliate” of the Company as defined in Rule 144 under the Securities Act of
1933 (an “Affiliate”):

     £ The transferee is an Affiliate of the Company.

     Unless one of items (1) through (5) above is checked, the Trustee will refuse to register any
of the Securities evidenced by this certificate in the name of any person other than the registered
Holder thereof; provided, however, that if item (3) or (5) is checked, the Company may require,
prior to registering any such transfer of the Securities, in its sole discretion, such written
legal opinions, certifications (including an investment letter, and in the case of a transfer
pursuant to item (3), a Regulation S Letter in substantially the form set forth below) and other
information as the Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the registration requirements of
the Securities Act of 1933.

     If none of the foregoing items are checked, the Trustee or Registrar shall not be obligated to
register this Security in the name of any person other than the Holder hereof unless and until the
conditions to any such transfer of registration set forth herein and in Section 2.06 of the
Indenture shall have been satisfied.

	 	 	 	 	 
	 

	 	Signed:	 	 
	 

	 	 	 	 
	 	 	(Sign exactly as your name appears on the other side of this Security)

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 

A-11

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

     The undersigned represents and warrants that it is purchasing this Security for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act of 1933 and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 
	Dated:                                                             

	 	                                                                                                    ]5
	 

	 	Notice: to be executed by an executive officer

 

			
	5  	Do not include in Exchange Notes.

A-12

 

[FORM OF REGULATION S LETTER TO BE DELIVERED

IN CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S

_________________, ______

JPMorgan Chase Bank, N.A.

4 New York Plaza

15th Floor

New York, New York 10004

Telecopier No.: (212) 623-6167

Attention: Worldwide Securities Services

     Re: 6.40% Senior Notes due 2016 of Transcontinental Gas Pipe Line Corporation.

Gentlemen:

     In connection with our proposed sale of $                     principal amount of the above
referenced Securities (the “Securities”), we confirm that such sale has been effected pursuant to
and in accordance with Regulation S under the Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, we represent that:

     (1) the offer of the Securities was not made to a person in the United States of America;

     (2) at the time the buy order was originated, the transferee was outside the United States of
America or we and any person acting on our behalf reasonably believed that the transferee was
outside the United States of America;

     (3) no directed selling efforts have been made by us in the United States of America in
contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable; and

     (4) the transaction is not part of a plan or scheme to evade the registration requirements of
the Securities Act.

     You and Transcontinental Gas Pipe Line Corporation are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the matters covered hereby.
Terms used but not defined in this letter have the meanings set forth in Regulation S under the
Securities Act.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[Name of Transferor]

A-13

 

	 	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 	 	Authorized Signature ]6

 

			
	6  	Do not include in Exchange Notes.

A-14

 

SCHEDULE OF EXCHANGES OF SECURITIES7

     The following exchanges, redemptions or repurchases of a part of this Global Security
have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount	 	 	Signature of	 
	 	 	Amount of decrease	 	 	Amount of increase	 	 	of Global Security	 	 	authorized Officer,	 
	 	 	in Principal	 	 	in Principal	 	 	following such	 	 	Trustee or	 
	 	 	Amount	 	 	Amount	 	 	decrease (or	 	 	Securities	 
	Date of Transaction	 	of Global Security	 	 	of Global Security	 	 	increase)	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	7  	This Schedule should be included only if the Security is a Global Security.

A-15exv10w1

 

REGISTRATION RIGHTS AGREEMENT

dated as of

April 11, 2006

among

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

and

BANC OF AMERICA SECURITIES LLC

and

GREENWICH CAPITAL MARKETS, INC.

on behalf of themselves and the Initial Purchasers listed on Schedule I

 

 

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into as of April 11,
2006, by and among Transcontinental Gas Pipe Line Corporation (the “Company”), a corporation duly
organized and existing under the laws of the State of Delaware, Banc of America Securities LLC and
Greenwich Capital Markets, Inc., acting on behalf of themselves and the several initial purchasers
listed on Schedule I hereto (the “Initial Purchasers”).

     This Agreement is made pursuant to the Purchase Agreement dated as of April 6, 2006, by and
among the Company and the Initial Purchasers (the “Purchase Agreement”), which provides for the
sale by the Company to the Initial Purchasers of $200,000,000 principal amount of its 6.40% Senior
Notes due 2016 (the “Securities”). The Securities are to be issued pursuant to the provisions of
an Indenture dated as of April 11, 2006 (as amended, supplemented or otherwise modified from time
to time, the “Indenture”) by and among the Company and JPMorgan Chase Bank, N.A., as trustee (the
“Trustee”).

     In order to induce the Initial Purchasers to enter into the Purchase Agreement, the Company
has agreed to provide to each Initial Purchaser and its direct and indirect transferees the
registration rights with respect to the Securities set forth in this Agreement. The execution of
this Agreement is a condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

	 	1.	 	Definitions.

     As used in this Agreement, the following capitalized defined terms shall have the following
meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended from time to time.

     “1934 Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

     “Additional Interest” shall have the meaning set forth in Section 2(e).

     “Agreement” shall have the meaning set forth in the preamble.

     “Business Day” shall have the meaning set forth in Rule 13e-4(a)(3) under the 1934 Act.

     “Closing Date” shall mean the Closing Date as defined in the Purchase Agreement.

 

 

     “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

     “Exchange Dates” shall have the meaning set forth in Section 2(a)(ii).

     “Exchange Offer Registration” shall mean a registration under the 1933 Act effected pursuant
to Section 2(a) hereof.

     “Exchange Offer Registration Statement” shall mean a registration statement on Form S-4 (or,
if applicable, on another appropriate form) relating to an offering of Exchange Securities pursuant
to an Registered Exchange Offer and all amendments and supplements to such registration statement,
in each case including the Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

     “Exchange Securities” shall mean any securities issued by the Company to be offered to Holders
in exchange for Securities (pursuant to the Registered Exchange Offer or otherwise) pursuant to an
Exchange Offer Registration Statement containing terms identical to the Securities for which they
are exchanged except that (i) interest thereon shall accrue from the last date on which interest
was paid on the Securities or, if no such interest has been paid, from the date of issuance of the
Securities and (ii) the Exchange Securities will not contain the legend appearing on the face of
the Securities in the form recited in the Indenture and will not contain terms with respect to
transfer restrictions.

     “Holder” shall mean each Initial Purchaser, for so long as it owns any Transfer Restricted
Securities, and each of its successors, assigns and direct and indirect transferees who become
registered owners of Transfer Restricted Securities under the Indenture; provided that for purposes
of Sections 4 and 5 of this Agreement, the term “Holder” shall include Participating Broker-Dealers
(as defined in Section 4(a)).

     “Indemnified Party” shall have the meaning set forth in Section 5(c).

     “Indemnifying Party” shall have the meaning set forth in Section 5(c).

     “Indenture” shall have the meaning set forth in the preamble.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
outstanding Transfer Restricted Securities; provided that, for purposes of Section 6(b), whenever
the consent or approval of Holders of a specified percentage of Transfer Restricted Securities is
required hereunder, Transfer Restricted Securities held by the Company or any of its affiliates (as
such term is defined in Rule 405 under the 1933 Act)(other than the Initial Purchasers or
subsequent Holders of Transfer Restricted Securities if such

2

 

subsequent Holders are deemed to be such affiliates solely by reason of their holding of such
Transfer Restricted Securities) shall not be considered outstanding and shall not be counted in
determining whether such consent or approval was given by the Holders of such required percentage
or amount.

     “Participant” shall have the meaning set forth in Section 5(a).

     “Participating Broker-Dealer” shall have the meaning set forth in Section 4(a) hereof.

     “Person” shall mean an individual, partnership, limited liability company, corporation, trust
or unincorporated organization, or a government or agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus included in a Registration Statement, including any
preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any
portion of the Transfer Restricted Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to such prospectus, and in each case including all material
incorporated by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Registration Default” shall have the meaning set forth in Section 2(e).

     “Registered Exchange Offer” shall mean the exchange offer by the Company of Exchange
Securities for all Securities that are Transfer Restricted Securities pursuant to Section 2(a)
hereof.

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company with this Agreement, including without limitation: (i) all SEC, stock
exchange or National Association of Securities Dealers, Inc. registration and filing fees, (ii) all
fees and expenses incurred in connection with compliance with state securities or blue sky laws
(including reasonable fees and disbursements of counsel for any underwriters or Holders in
connection with blue sky qualification of any of the Exchange Securities or Transfer Restricted
Securities), (iii) all expenses of any Person in preparing or assisting in preparing, word
processing, printing and distributing any Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements and other documents
relating to the performance of and compliance with this Agreement, (iv) all rating agency fees, (v)
all fees and disbursements relating to the qualification of the Indenture under applicable
securities laws, (vi) the fees and disbursements of the Trustee and its counsel, (vii) the fees and
disbursements of counsel for the Company and, in the case of a Shelf Registration Statement, the
reasonable fees and disbursements of one counsel for the Holders (which counsel shall be selected

3

 

by the Majority Holders and which counsel may also be counsel for the Initial Purchasers) and
(viii) the fees and disbursements of the independent public accountants of the Company, including
the expenses of any special audits or “cold comfort” letters required by or incident to such
performance and compliance, but excluding fees of counsel to the Underwriters (other than the fees
and expenses set forth in clause (ii) above) and the Holders and underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of Transfer Restricted
Securities by a Holder.

     “Registration Statement” shall mean any registration statement of the Company that covers any
of the Exchange Securities or the Transfer Restricted Securities pursuant to the provisions of this
Agreement and all amendments and supplements to any such Registration Statement, including
post-effective amendments, in each case including the Prospectus contained therein, all exhibits
thereto and all material incorporated by reference therein.

     “SEC” shall mean the Securities and Exchange Commission.

     “Securities” shall have the meaning set forth in the preamble.

     “Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company
pursuant to the provisions of Section 2(b) of this Agreement which covers all of the Transfer
Restricted Securities (but no other securities unless approved by the Holders of a majority of the
aggregate principal amount of outstanding Transfer Restricted Securities that are covered by such
Shelf Registration Statement) on an appropriate form under Rule 415 under the 1933 Act, or any
similar rule that may be adopted by the SEC, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by reference therein.

     “TIA” shall have the meaning set forth in Section 3(l) hereof.

     “Transfer Restricted Securities” shall mean each outstanding Security until: (i) when in the
case of a Holder who was entitled to participate in the Registered Exchange Offer, an Exchange
Offer Registration Statement with respect to such Security shall have been declared effective under
the 1933 Act and either (a) such Security shall have been exchanged by a Person other than a
broker-dealer for an Exchange Security in the Registered Exchange Offer or (b) the Registered
Exchange Offer shall have been consummated and such Security was not tendered by the Holder thereof
in the Registered Exchange Offer; (ii) following the exchange by a broker-dealer in the Registered
Exchange Offer of a Security for an Exchange Security, the date on which such Exchange Security is
sold to a purchaser who receives from such broker-dealer on or prior to the date of

4

 

such sale a copy of the Prospectus contained in the Exchange Offer Registration Statement;
(iii) the date on which such Security has been effectively registered under the 1933 Act and
disposed of in accordance with the Shelf Registration Statement; or (iv) the date on which such
Security is distributed to the public or may be sold or transferred pursuant to Rule 144(k) under
the 1933 Act were it not held by an affiliate of the Company.

     “Trustee” shall have the meaning set forth in the preamble.

     “Underwriter” shall have the meaning set forth in Section 3 hereof.

     “Underwritten Registration or Underwritten Offering” shall mean a registration in which
Transfer Restricted Securities are sold to an Underwriter for reoffering to the public.

	 	2.	 	Registration under the 1933 Act.

     (a) To the extent not prohibited by any applicable law or applicable interpretation
of the Staff of the SEC, the Company shall (1) cause to be filed an Exchange Offer
Registration Statement within 180 days following the Closing Date covering the offer by
the Company to the Holders to exchange all of the Transfer Restricted Securities for an
equal aggregate principal amount of Exchange Securities and (2) use its commercially
reasonable efforts to cause such Exchange Offer Registration Statement to become effective
within 270 days following the Closing Date. The Company shall use its commercially
reasonable efforts to have the Exchange Offer Registration Statement remain effective
until the closing of the Registered Exchange Offer. The Company shall commence the
Registered Exchange Offer promptly after the Exchange Offer Registration Statement has
been declared effective by the SEC and use its commercially reasonable efforts to have the
Registered Exchange Offer consummated not later than 30 Business Days, or longer, if
required by the federal securities laws, after such effective date. The Company shall
commence the Registered Exchange Offer by mailing the related exchange offer Prospectus
and accompanying documents to each Holder stating, in addition to such other disclosures
as are required by applicable law:

     (i) that the Registered Exchange Offer is being made pursuant to this
Registration Rights Agreement and that all Transfer Restricted Securities
validly tendered will be accepted for exchange;

     (ii) the dates of acceptance for exchange (which shall be a period of at
least 20 Business Days from the date such notice is mailed) (the “Exchange
Dates”);

5

 

     (iii) that any Transfer Restricted Security not tendered will remain
outstanding and continue to accrue interest, but will not retain any rights
under this Agreement;

     (iv) that Holders electing to have a Transfer Restricted Security exchanged
pursuant to the Registered Exchange Offer will be required to surrender such
Transfer Restricted Security, together with the enclosed letters of transmittal,
to the institution and at the address specified in the notice prior to the close
of business on the last Exchange Date; and

     (v) that Holders will be entitled to withdraw their election, not later
than the close of business on the last Exchange Date, by sending to the
institution and at the address (located in the Borough of Manhattan, The City of
New York) specified in the notice, a telegram, telex, facsimile transmission or
letter setting forth the name of such Holder, the principal amount of Transfer
Restricted Securities delivered for exchange and a statement that such Holder is
withdrawing his election to have such Transfer Restricted Securities exchanged.

     As soon as practicable after the last Exchange Date, the Company shall:

     (A) accept for exchange Transfer Restricted Securities or
portions thereof tendered and not validly withdrawn pursuant to the
Registered Exchange Offer; and

     (B) deliver, or cause to be delivered, to the Trustee for
cancellation all Transfer Restricted Securities or portions thereof so
accepted for exchange by the Company and issue, and cause the Trustee
to promptly authenticate and deliver to each Holder, an Exchange
Security equal in aggregate principal amount to the aggregate
principal amount of the Transfer Restricted Securities surrendered by
such Holder.

     The Company shall use its commercially reasonable efforts to complete the Registered
Exchange Offer as provided above and shall comply with the applicable requirements of the
1933 Act, the 1934 Act and other applicable laws and regulations in connection with the
Registered Exchange Offer. The Registered Exchange Offer shall not be subject to any
conditions, other than that the Registered Exchange Offer does not violate applicable law
or any applicable interpretation of the Staff of the SEC. The Company shall inform the
Initial Purchasers of the names and addresses of the Holders to whom the Registered
Exchange Offer is

6

 

made, and the Initial Purchasers shall have the right, subject to applicable law, to
contact such Holders and otherwise facilitate the tender of Transfer Restricted Securities
in the Registered Exchange Offer.

     If, during the period the Exchange Offer Registration Statement is effective, an
event occurs which makes any statement made in such Exchange Offer Registration Statement
or the related Prospectus untrue in any material respect or which requires the making of
any changes in such Exchange Offer Registration Statement or Prospectus in order to make
the statements therein not misleading, the Company shall use its commercially reasonable
efforts to prepare and file with the SEC a supplement or post-effective amendment to the
Exchange Offer Registration Statement or the related Prospectus or any document
incorporated therein by reference or file any other required document so that, as
thereafter delivered to the purchasers of the Transfer Restricted Securities, such
Prospectus will not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The Company agrees to notify the Holders to
suspend the exchange of the Transfer Restricted Securities as promptly as practicable
after the occurrence of such an event, and the Holders hereby agree to suspend such
exchange until the Company has amended or supplemented the Prospectus to correct such
misstatement or omission.

     (b) If (i) the Company is not (A) required to file the Exchange Offer Registration
Statement or (B) permitted to consummate the Registered Exchange Offer because the
Registered Exchange Offer is not permitted by applicable law or applicable interpretation
of the Staff of the SEC; or (ii) any Holder of Transfer Restricted Securities notifies the
Company prior to the 20th day following the consummation of the Registered Exchange Offer
that: (A) it is prohibited by law or applicable interpretation of the Staff of the SEC
from participating in the Registered Exchange Offer, (B) it may not resell the Exchange
Securities acquired by it in the Registered Exchange Offer to the public without
delivering a Prospectus and the Prospectus contained in the Exchange Offer Registration
Statement is not appropriate or available for such resales or (C) it is a broker-dealer
and owns Securities acquired directly from the Company or an affiliate of the Company, the
Company shall (x) use its commercially reasonable efforts to file with the SEC within 60
days after such filing obligation arises (or, if later, the date by which the Company is
obligated to file an Exchange Offer Registration Statement) a Shelf Registration Statement
providing for the resale by the Holders (other than those who fail to comply with the
paragraph immediately following clause (p) of Section 3) of all of their Transfer
Restricted Securities and (y) use its commercially reasonable efforts to cause such Shelf
Registration Statement to become effective within 180 days after such filing obligation

7

 

arises (or, if later, the date by which the Company is obligated to use its
commercially reasonable efforts to have the Exchange Offer Registration Statement declared
effective). If the Company is required to file a Shelf Registration Statement solely as a
result of the matters referred to in clause (ii) of the preceding sentence, the Company
shall use it commercially reasonable efforts to file and have declared effective by the
SEC both an Exchange Offer Registration Statement pursuant to Section 2(a) with respect to
all Transfer Restricted Securities and a Shelf Registration Statement (which may be a
combined Registration Statement with the Exchange Offer Registration Statement) with
respect to reoffers and resales of Transfer Restricted Securities held by the Holders who
must deliver the related Prospectus. Subject to the following paragraph, the Company
agrees to use its commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective until the expiration of the period referred to in Rule 144(k) with
respect to the Transfer Restricted Securities or such shorter period that will terminate
when all of the Transfer Restricted Securities covered by the Shelf Registration Statement
have been sold pursuant to the Shelf Registration Statement or cease to be Transfer
Restricted Securities within the meaning of this Agreement. The Company further agrees to
supplement or amend the Shelf Registration Statement if required by the rules, regulations
or instructions applicable to the registration form used by the Company for such Shelf
Registration Statement or by the 1933 Act or by any other rules and regulations thereunder
for shelf registration or if reasonably requested by a Holder with respect to information
relating to such Holder, and to use its commercially reasonable efforts to cause any such
amendment to become effective and such Shelf Registration Statement to become usable as
soon as thereafter practicable. The Company agrees to furnish to the Holders of Transfer
Restricted Securities copies of any such supplement or amendment promptly after its being
used or filed with the SEC.

     Notwithstanding anything to the contrary in this Agreement, the Company, upon
advising the Initial Purchasers and each Holder, may suspend the use of the Prospectus
included in any Shelf Registration Statement in the event that and for periods of time not
to exceed 30 consecutive days and for no more than 60 days during any 365 day period in
which such suspensions are in effect (each such period, a “Suspension Period”) if (i) an
event or circumstance occurs and is continuing as a result of which the Shelf Registration
Statement, the related Prospectus or any document incorporated therein by reference as
then amended or supplemented or proposed to be filed would, in the good faith judgment of
the Company, contain an untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading and (ii)(A) the Company determines in its good
faith judgment that the disclosure of such event at such time would have a material
adverse effect

8

 

on the business, operations or prospects of the Company or (B) the disclosure
otherwise relates to a material business transaction or development which has not been
publicly disclosed; provided, however, that upon the termination of such Suspension
Period, the Company shall promptly advise the Initial Purchasers and each Holder that such
Suspension Period has been terminated.

     (c) The Company shall pay all Registration Expenses in connection with the
registration pursuant to Section 2(a) or Section 2(b). Each Holder shall pay all
underwriting discounts, if any, and commissions and transfer taxes, if any, relating to
the sale or disposition of such Holder’s Transfer Restricted Securities pursuant to a
Shelf Registration Statement.

     (d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a
Shelf Registration Statement pursuant to Section 2(b) hereof will not be deemed to have
become effective unless it has been declared effective by the SEC; provided, however,
that, if, after it has been declared effective, the offering of Transfer Restricted
Securities pursuant to a Shelf Registration Statement is interfered with by any stop
order, injunction or other order or requirement of the SEC or any other governmental
agency or court, such Registration Statement will be deemed not to have become effective
during the period of such interference until the offering of Transfer Restricted
Securities pursuant to such Registration Statement may legally resume.

     (e) The Company and the Initial Purchasers agree that the Holders will suffer damages
if the Company fails to fulfill its obligations under Section 2(a) or Section 2(b) hereof
and that it would not be feasible to ascertain the extent of such damages with precision.
Accordingly, the Company agrees that if:

     (i) the Exchange Offer Registration Statement is not filed with the SEC on
or prior to the 180th day following the Closing Date,

     (ii) the Exchange Offer Registration Statement is not declared effective on
or prior to the 270th day following the Closing Date,

     (iii) the Registered Exchange Offer is not completed on or prior to the
30th Business Day following the date the Exchange Offer Registration
Statement is declared effective, or

     (iv) the Shelf Registration Statement is required to be filed but is not
filed or declared effective within the respective time periods set forth herein
or is declared effective but thereafter

9

 

ceases to be effective or usable (other than during a Suspension Period)
prior to the expiration of the period referred to in Rule 144(k) with respect to
the Transfer Restricted Securities other than after the Transfer Restricted
Securities have been disposed of under the Shelf Registration Statement or cease
to be Transfer Restricted Securities, without being succeeded within two
Business Days by a post-effective amendment which cures the failure and that is
itself immediately declared effective,

(each such event referred to in clauses (i) through (iv) a “Registration Default”),
Additional Interest (“Additional Interest”) will accrue on the affected Transfer
Restricted Securities. The rate of Additional Interest will be one-quarter of one percent
(0.25%) per annum on the principal amount of Transfer Restricted Securities held by such
Holder for the first 90-day period immediately following the occurrence of a Registration
Default, increasing by an additional one-quarter of one percent (0.25%) per annum on the
principal amount of Transfer Restricted Securities with respect to each subsequent 90-day
period thereafter up to a maximum amount of Additional Interest for all Registration
Defaults of one-half of one percent (0.50%) per annum on the principal amount of Transfer
Restricted Securities, from and including the date on which any such Registration Default
shall occur to, but excluding, the earlier of (1) the date on which all Registration
Defaults have been cured or (2) the date on which all the Transfer Restricted Securities
otherwise become freely transferable by Holders other than affiliates of the Company
without further registration under the 1933 Act.

     Notwithstanding the foregoing, (1) the amount of Additional Interest payable shall
not increase because more than one Registration Default has occurred and is pending and
(2) a Holder of Transfer Restricted Securities or Exchange Securities who is not entitled
to the benefits of the Shelf Registration Statement (i.e., such Holder has not elected to
including information) shall not be entitled to Additional Interest with respect to a
Registration Default that pertains to the Shelf Registration Statement.

     (f) The Company shall notify the Trustee within one Business Day after each date on
which an event occurs in respect of which Additional Interest is required to be paid. Any
amounts of Additional Interest due pursuant to this Section 2 will be payable in addition
to any other interest payable from time to time with respect to the Transfer Restricted
Securities in cash semi-annually on the interest payment dates specified in the Indenture
(to the holders of record as specified in the Indenture), commencing with the first such
interest payment date occurring after any such Additional Interest commences to accrue.
The amount of Additional Interest will be determined in a manner consistent with the
calculation of interest under the Indenture.

10

 

     (g) Without limiting the remedies available to the Holders, the Company acknowledges
that any failure by the Company to comply with its obligations under Section 2(a) and
Section 2(b) hereof may result in material irreparable injury to the Holders for which
there is no adequate remedy at law, that it will not be possible to measure damages for
such injuries precisely and that, in the event of any such failure, the Initial Purchasers
or any Holder may obtain such relief as may be required to specifically enforce the
Company’s obligations under Section 2(a) and Section 2(b) hereof.

	 	3.	 	Registration Procedures.

     In connection with the obligations of the Company with respect to the Registration Statements
pursuant to Section 2(a) and Section 2(b) hereof, the Company shall as expeditiously as possible
(provided, however, that the Company shall not be required to take actions more promptly than
required by Sections 2(a) and 2(b)):

     (a) prepare and file with the SEC a Registration Statement on the appropriate form
under the 1933 Act, which form shall (x) be selected by the Company, (y) in the case of a
Shelf Registration, be available for the sale of the Transfer Restricted Securities by the
selling Holders thereof and (z) comply as to form in all material respects with the
applicable requirements of the 1933 Act and rules and regulations promulgated thereunder
and include all financial statements required by the SEC to be filed therewith, and use
commercially reasonable efforts to cause such Registration Statement to become effective
and remain effective in accordance with Section 2 hereof;

     (b) prepare and file with the SEC such amendments and post-effective amendments to
each Registration Statement as may be necessary to keep such Registration Statement
effective for the applicable period and cause each Prospectus to be supplemented by any
required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424
under the 1933 Act; and keep each Prospectus current during the period described under
Section 4(3) and Rule 174 under the 1933 Act that is applicable to transactions by brokers
or dealers with respect to the Transfer Restricted Securities or Exchange Securities;

     (c) in the case of a Shelf Registration, furnish to each Holder of Transfer
Restricted Securities, to counsel for the Initial Purchasers and to counsel for the
Holders and to each Underwriter of an Underwritten Offering of Transfer Restricted
Securities, if any, without charge, as many copies of each Prospectus, including each
preliminary Prospectus and any amendment or supplement thereto and such other documents as
such Holder or Underwriter may reasonably request, in order to facilitate the public sale
or other disposition of the Transfer Restricted Securities; and,

11

 

subject to Section 3(i), the Company consents to the use of such Prospectus and any
amendment or supplement thereto in accordance with applicable law by each of the selling
Holders of Transfer Restricted Securities and any such Underwriters in connection with the
offering and sale of the Transfer Restricted Securities covered by and in the manner
described in such Prospectus or any amendment or supplement thereto in accordance with
applicable law;

     (d) use its commercially reasonable efforts to register or qualify the Transfer
Restricted Securities under all applicable state securities or blue sky laws of such
jurisdictions as any Holder of Transfer Restricted Securities covered by a Registration
Statement shall reasonably request in writing by the time the applicable Registration
Statement is declared effective by the SEC, and to cooperate with such Holders in
connection with any filings required to be made with the National Association of
Securities Dealers, Inc. and do any and all other acts and things which may be reasonably
necessary or advisable to enable such Holder to consummate the disposition in each such
jurisdiction of such Transfer Restricted Securities owned by such Holder; provided,
however, that the Company shall not be required to (i) qualify as a foreign corporation or
as a dealer in securities in any jurisdiction where it would not otherwise be required to
qualify but for this Section 3(d), (ii) file any general consent to service of process or
(iii) subject itself to taxation in any such jurisdiction if it is not so subject;

     (e) in the case of a Shelf Registration, notify each Holder of Transfer Restricted
Securities, counsel for the Holders and counsel for the Initial Purchasers (or, if
applicable, separate counsel for the Holders) promptly and, if requested by any such
Holder or counsel, confirm such advice in writing, (i) when a Registration Statement has
become effective and when any post-effective amendment thereto has been filed and becomes
effective, (ii) of any request by the SEC or any state securities authority for amendments
and supplements to a Registration Statement and Prospectus or for additional information
after the Registration Statement has become effective, (iii) of the issuance by the SEC or
any state securities authority of any stop order suspending the effectiveness of a
Registration Statement or the initiation of any proceedings for that purpose, (iv) if,
between the effective date of a Registration Statement and the closing of any sale of
Transfer Restricted Securities covered thereby, the Company receives any notification with
respect to the suspension of the qualification of the Transfer Restricted Securities for
sale in any jurisdiction or the initiation of any proceeding for such purpose, (v) of the
happening of any event during the period a Shelf Registration Statement is effective which
makes any statement made in such Shelf Registration Statement or the related Prospectus
untrue in any material respect or which requires the making of any changes in such
Registration Statement

12

 

or Prospectus in order to make the statements therein not misleading, (vi) of any
determination by the Company that a post-effective amendment to a Registration Statement
would be appropriate and (vii) of any Suspension Period;

     (f) use its commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement at the earliest possible moment
and provide immediate notice to each Holder of the withdrawal of any such order;

     (g) in the case of a Shelf Registration, furnish to each Holder of Transfer
Restricted Securities, without charge, at least one conformed copy of each Registration
Statement and any post-effective amendment thereto (without documents incorporated therein
by reference or exhibits thereto, unless requested);

     (h) in the case of a Shelf Registration, cooperate with the selling Holders of
Transfer Restricted Securities to facilitate the timely preparation and delivery of
certificates representing Transfer Restricted Securities (if such Securities are
certificated) to be sold and not bearing any restrictive legends (unless required by
applicable securities laws) and enable such Transfer Restricted Securities to be in such
denominations (consistent with the provisions of the Indenture) and registered in such
names as the selling Holders may reasonably request at least two Business Days prior to
the closing of any sale of Transfer Restricted Securities;

     (i) in the case of a Shelf Registration, upon the occurrence of any event
contemplated by Section 3(e)(v) or (vii) hereof, use its commercially reasonable efforts
to prepare and file with the SEC a supplement or post-effective amendment to a
Registration Statement or the related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered to the
purchasers of the Transfer Restricted Securities, such Prospectus will not contain any
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading. The Company agrees to notify the Holders to suspend use of the Prospectus as
promptly as practicable after the occurrence of such an event, and the Holders hereby
agree to suspend use of the Prospectus until the Company has amended or supplemented the
Prospectus to correct such misstatement or omission and has furnished copies of the
amended or supplemented Prospectus to the Holders or until the Company notifies the
Holders that the sale of the Transfer Restricted Securities may be resumed;

     (j) a reasonable time prior to the filing of any Registration Statement, any
Prospectus, any amendment to a Registration Statement or amendment or supplement to a
Prospectus (except any amendment or

13

 

supplement solely to add additional selling securityholders), provide copies of such
document to the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, the Holders and their counsel) and make such of the
representatives of the Company as shall be reasonably requested by the Initial Purchasers
or their counsel (and, in the case of a Shelf Registration Statement, the Holders or their
counsel) available for discussion of such document, and shall not at any time file or make
any amendment to the Shelf Registration Statement, any Prospectus or any amendment of or
supplement to a Shelf Registration Statement or a Prospectus (except any amendment or
supplement solely to add additional selling securityholders) of which the Initial
Purchasers and their counsel (and, in the case of a Shelf Registration Statement, the
Holders or their counsel) shall not have previously been advised and furnished a copy or
to which the Initial Purchasers or their counsel (and, in the case of a Shelf Registration
Statement, the Holders or their counsel) shall reasonably object;

     (k) obtain a CUSIP number for all Exchange Securities or Transfer Restricted
Securities, as the case may be, not later than the effective date of the applicable
Registration Statement;

     (l) cause the Indenture to be qualified under the Trust Indenture Act of 1939, as
amended (the “TIA”), in connection with the registration of the Exchange Securities or
Transfer Restricted Securities, as the case may be, and cooperate with the Trustee and the
Holders to effect such changes to the Indenture as may be required for the Indenture to be
so qualified in accordance with the terms of the TIA and execute, and use commercially
reasonable best efforts to cause the Trustee to execute, all documents as may be required
to effect such changes and all other forms and documents required to be filed with the SEC
to enable the Indenture to be so qualified in a timely manner;

     (m) in the case of a Shelf Registration, make available for inspection by a
representative of the Holders of the Transfer Restricted Securities, any Underwriter
participating in any disposition pursuant to such Shelf Registration Statement, and
attorneys and accountants designated by the Holders, at reasonable times and in a
reasonable manner, all financial and other records, pertinent documents and properties of
the Company, and cause the respective officers, directors and employees of the Company to
supply all information reasonably requested by any such representative, Underwriter,
attorney or accountant in connection with a Shelf Registration Statement, in each case
that would customarily be reviewed or examined in connection with “due diligence” review
of the Company;

     (n) use its reasonable best efforts to cause the Exchange Securities to continue to
be rated by two nationally recognized statistical

14

 

rating organizations (as such term is defined in Rule 436(g)(2) under the 1933 Act),
if the Transfer Restricted Securities have been rated;

     (o) if reasonably requested by any Holder of Transfer Restricted Securities covered
by a Registration Statement, (i) promptly incorporate in a Prospectus supplement or
post-effective amendment such information with respect to such Holder as such Holder
reasonably requests to be included therein and (ii) make all required filings of such
Prospectus supplement or such post-effective amendment as soon as reasonably practicable
after the Company has received notification of the matters to be incorporated in such
filing; and

     (p) in the case of a Shelf Registration, enter into such customary agreements and
take all such other actions in connection therewith (including those reasonably requested
by the Holders of a majority of the Transfer Restricted Securities being sold thereunder)
in order to expedite or facilitate the disposition of such Transfer Restricted Securities
thereunder including, but not limited to, pursuant to an Underwritten Offering and in such
connection, (i) to the extent possible, make such representations and warranties to the
Holders and any Underwriters of such Transfer Restricted Securities with respect to the
business of the Company and its subsidiaries, the Registration Statement, Prospectus and
documents incorporated by reference or deemed incorporated by reference, if any, in each
case, in form, substance and scope as are customarily made by issuers to underwriters in
underwritten offerings and confirm the same if and when requested, (ii) obtain opinions of
counsel to the Company (which counsel and opinions, in form, scope and substance, shall be
reasonably satisfactory to the Holders of a majority in principal amount of the Transfer
Restricted Securities being sold under such Shelf Registration Statement, such
Underwriters and their respective counsel) addressed to each selling Holder and
Underwriter of Transfer Restricted Securities, covering the matters customarily covered in
opinions requested in underwritten offerings, (iii) obtain “cold comfort” letters from the
independent certified public accountants of the Company (and, if necessary, any other
certified public accountant of any subsidiary of the Company, or of any business acquired
by the Company for which financial statements and financial data are or are required to be
included in the Registration Statement) addressed to each selling Holder and Underwriter
of Transfer Restricted Securities, such letters to be in customary form and covering
matters of the type customarily covered in “cold comfort” letters in connection with
underwritten offerings, and (iv) deliver such documents and certificates as may be
reasonably requested by the Holders of a majority in principal amount of the Transfer
Restricted Securities being sold under such Shelf Registration Statement or by the
Underwriters, and which are customarily delivered in underwritten offerings, to evidence
the continued validity of the representations and

15

 

warranties of the Company made pursuant to clause (i) above and to evidence
compliance with any customary conditions contained in an underwriting agreement.

     In the case of a Shelf Registration Statement, the Company may require each Holder of
Transfer Restricted Securities to furnish to the Company such information regarding the
Holder and the proposed distribution by such Holder of such Transfer Restricted Securities
as the Company may from time to time reasonably request in writing. No Holder of Transfer
Restricted Securities may include its Transfer Restricted Securities in such Shelf
Registration Statement unless and until such Holder furnishes such information to the
Company. Each Holder including Transfer Restricted Securities in a Shelf Registration
Statement shall agree to furnish promptly to the Company all information regarding such
Holder and the proposed distribution by such Holder of such Transfer Restricted Securities
required to make the information previously furnished to the Company by such Holder not
materially misleading.

     In connection with an Exchange Offer Registration, each Holder exchanging Securities
for Exchange Securities shall be required to represent that (i) the Exchange Securities
are being obtained in the ordinary course of business of the Person receiving such
Exchange Securities, whether or not such Person is a Holder, (ii) neither such Holder nor
any such other Person has an arrangement or understanding with any Person to participate
in the distribution of Exchange Securities, (iii) other than as set forth in Section 4, if
the Holder is not a broker-dealer, or is a broker-dealer but will not receive Exchange
Securities for its own account in exchange for Securities, neither the Holder nor any such
other Person is engaged in or intends to participate in a distribution of the Exchange
Securities and (iv) neither the Holder nor any such other Person is an “affiliate” of the
Company within the meaning of Rule 405 under the Securities Act or, if such Person is an
“affiliate”, that such Holder will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable.

     In the case of a Shelf Registration Statement, each Holder agrees that, upon receipt
of any notice from the Company of the happening of any event of the kind described in
Section 3(e)(v) hereof or of a Suspension Period, such Holder will forthwith discontinue
disposition of Transfer Restricted Securities pursuant to a Registration Statement until
such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated
by Section 3(i) hereof, and, if so directed by the Company, such Holder will destroy or
deliver to the Company (at its expense) all copies in its possession, other than permanent
file copies then in such Holder’s possession, of the Prospectus covering such Transfer
Restricted Securities current at the time of receipt of such notice.

16

 

     If the Company shall give any such notice to suspend the disposition of Transfer
Restricted Securities pursuant to a Registration Statement, the Company shall extend the
period during which the Registration Statement shall be maintained effective pursuant to
this Agreement by the number of days during the period from and including the date of the
giving of such notice to and including the date when the Holders shall have received
copies of the supplemented or amended Prospectus necessary to resume such dispositions.

     The Holders of Transfer Restricted Securities covered by a Shelf Registration
Statement who desire to do so may sell such Transfer Restricted Securities in an
Underwritten Offering. In any such Underwritten Offering, the investment banker or
investment bankers and manager or managers (the “Underwriters”) that will administer the
offering will be selected by the Majority Holders of the Transfer Restricted Securities
included in such offering, provided that such Underwriters shall be reasonably acceptable
to the Company.

	 	4.	 	Participation of Broker-Dealers in Registered Exchange Offer.

     (a) The parties hereto understand that the Staff of the SEC has taken the position
that any broker-dealer that receives Exchange Securities for its own account in the
Registered Exchange Offer in exchange for Securities that were acquired by such
broker-dealer as a result of market-making or other trading activities (a “Participating
Broker-Dealer”), may be deemed to be an “underwriter” within the meaning of the 1933 Act
and must deliver a prospectus meeting the requirements of the 1933 Act in connection with
any resale of such Exchange Securities.

     The Company understands that it is currently the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a plan of
distribution containing a statement to the above effect and the means by which
Participating Broker-Dealers may resell the Exchange Securities, without naming the
Participating Broker-Dealers or specifying the amount of Exchange Securities owned by
them, such Prospectus may be delivered by Participating Broker-Dealers to satisfy their
prospectus delivery obligation under the 1933 Act in connection with resales of Exchange
Securities for their own accounts, so long as the Prospectus otherwise meets the
requirements of the 1933 Act.

     (b) In light of the above, notwithstanding the other provisions of this Agreement,
the Company agrees that the provisions of this Agreement as they relate to a Shelf
Registration shall also apply to an Exchange Offer Registration to the extent, and with
such reasonable modifications thereto as may be, reasonably requested by the Initial
Purchasers or by one or more Participating Broker-Dealers, in each case as provided in
clause (ii) below, in order to expedite or facilitate the

17

 

disposition of any Exchange Securities by Participating Broker-Dealers consistent
with the positions of the Staff recited in Section 4(a) above; provided that:

     (i) the Company shall not be required to amend or supplement the Prospectus
contained in the Exchange Offer Registration Statement, as would otherwise be
contemplated by Section 3(i), for a period exceeding 180 days after the last
Exchange Date (as such period may be extended pursuant to the penultimate
paragraph of Section 3 of this Agreement) and Participating Broker-Dealers shall
not be authorized by the Company to deliver and shall not deliver such
Prospectus after such period in connection with the resales contemplated by this
Section 4; and

     (ii) the application of the Shelf Registration procedures set forth in
Section 3 of this Agreement to an Exchange Offer Registration, to the extent not
required by the positions of the Staff of the SEC or the 1933 Act and the rules
and regulations thereunder, will be in conformity with the reasonable request in
writing to the Company by the Initial Purchasers or with the reasonable request
in writing to the Company by one or more broker-dealers who certify to the
Initial Purchasers and the Company in writing that they anticipate that they
will be Participating Broker-Dealers; and provided further that, in connection
with such application of the Shelf Registration procedures set forth in Section
3 to an Exchange Offer Registration, the Company shall be obligated (x) to deal
only with Banc of America Securities LLC and Greenwich Capital Markets, Inc., as
representatives of the Participating Broker-Dealers, unless they elect not to
act as such representatives, (y) to pay the fees and expenses of only one
counsel representing the Participating Broker-Dealers, which shall be counsel to
the Initial Purchasers unless such counsel elects not to so act and (z) to cause
to be delivered only one, if any, “cold comfort” letter with respect to the
Prospectus in the form existing on the last Exchange Date and with respect to
each subsequent amendment or supplement, if any, effected during the period
specified in clause (i) above.

     (c) The Initial Purchasers shall have no liability to the Company, other than as
Holders in accordance with the terms hereof, or to any other Holder with respect to any
request that they may make pursuant to Section 4(b) above.

	 	5.	 	Indemnification and Contribution.

18

 

     (a) The Company agrees to indemnify and hold harmless the Initial Purchasers, each
Holder and each Person, if any, who controls the Initial Purchasers or any Holder within
the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act, or is
under common control with, or is controlled by, the Initial Purchasers or any Holder
(each, a “Participant”), from and against all losses, claims, damages and liabilities
(including, without limitation, any legal fees or other expenses reasonably incurred by a
Participant in connection with defending or investigating any such action or claim) caused
by any untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement (or any amendment thereto) pursuant to which Exchange Securities or
Transfer Restricted Securities were registered under the 1933 Act, including all documents
incorporated therein by reference, or caused by any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, or caused by any untrue statement or alleged untrue statement of a
material fact contained in any Prospectus (as amended or supplemented if the Company shall
have furnished any amendments or supplements thereto) forming a part of such Registration
Statement, or caused by any omission or alleged omission to state therein a material fact
necessary to make the statements therein in the light of the circumstances under which
they were made not misleading, except insofar as such losses, claims, damages or
liabilities are caused by any such untrue statement or omission or alleged untrue
statement or omission based upon and in conformity with information relating to the
Initial Purchasers or any Holder furnished to the Company in writing by the Initial
Purchasers or any selling Holder expressly for use therein; provided that the foregoing
indemnity with respect to any Prospectus shall not inure to the benefit of any Holder from
whom the Person asserting any such losses, claims, damages or liabilities purchased
Securities, or any Person controlling such Holder, if a copy of the final Prospectus (as
then amended or supplemented if the Company shall have furnished any amendments or
supplements thereto) was not sent by, or delivered on behalf of, such Holder to such
Person at or prior to the written confirmation of the sale of the Securities to such
Person, if the final Prospectus (as so amended or supplemented) would have cured the
defect giving rise to such loss, claim, damage or liability. In connection with any
Underwritten Offering permitted by Section 3, the Company will also enter into an
underwriting agreement pursuant to which the Company will agree to indemnify the
Underwriters, if any, selling brokers, dealers and similar securities industry
professionals participating in such Underwritten Offering, their officers and directors
and each Person who controls such Persons (within the meaning of either Section 15 of the
1933 Act or Section 20 of the 1934 Act) to the same extent as provided above with respect
to the indemnification of the Holders, if requested in connection with any Registration
Statement for such Underwritten Offering.

19

 

     (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Initial Purchasers and the other selling Holders, and each of their
respective directors and officers who sign the Registration Statement and each Person, if
any, who controls the Company, the Initial Purchasers and any other selling Holder within
the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act to the same
extent as the foregoing indemnity from the Company to the Initial Purchasers and the
Holders pursuant to Section 5(a), but only with reference to information relating to such
Holder furnished to the Company in writing by such Holder expressly for use in any
Registration Statement (or any amendment thereto) or any Prospectus (or any amendment or
supplement thereto).

     (c) In case any proceeding (including any governmental investigation) shall be
instituted involving any Person in respect of which indemnity may be sought pursuant to
either paragraph (a) or paragraph (b) above, such Person (the “Indemnified Party”) shall
promptly notify the Person against whom such indemnity may be sought (the “Indemnifying
Party”) in writing, but the failure to so promptly notify the Indemnifying Party shall not
negate the obligation to so indemnify such Indemnified Party unless the Indemnifying Party
is materially prejudiced by such delay, and the Indemnifying Party, upon request of the
Indemnified Party, shall retain counsel reasonably satisfactory to the Indemnified Party
to represent the Indemnified Party and any others the Indemnifying Party may designate in
such proceeding and shall pay the fees and expenses of such counsel related to such
proceeding. In any such proceeding, any Indemnified Party shall have the right to retain
its own counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party shall have
mutually agreed to the retention of such counsel or (ii) the named parties to any such
proceeding (including any impleaded parties) include both the Indemnifying Party and the
Indemnified Party and, in the opinion of counsel to the Indemnifying Party, representation
of both parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the Indemnifying Party shall not,
in connection with any proceeding or related proceedings in the same jurisdiction, be
liable for (a) the fees and expenses of more than one separate firm (in addition to any
local counsel) for the Initial Purchasers and all Persons, if any, who control the Initial
Purchasers within the meaning of either Section 15 of the 1933 Act or Section 20 of the
1934 Act, (b) the fees and expenses of more than one separate firm (in addition to any
local counsel) for the Company, its directors, its officers who sign the Registration
Statement and each Person, if any, who controls the Company within the meaning of either
such Section and (c) the fees and expenses of more than one separate firm (in addition to
any local counsel) for all Holders and all Persons, if any, who

20

 

control any Holders within the meaning of either such Section, and that all such fees
and expenses shall be reimbursed as they are incurred. In such case involving the Initial
Purchasers and Persons who control the Initial Purchasers, such firm shall be designated
in writing by the Initial Purchasers. In such case involving the Holders and such Persons
who control Holders, such firm shall be designated in writing by the Majority Holders. In
all other cases, such firm shall be designated by the Company. The Indemnifying Party
shall not be liable for any settlement of any proceeding effected without its written
consent but, if settled with such consent or if there be a final judgment for the
plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and
against any loss or liability by reason of such settlement or judgment. No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect any
settlement of any pending or threatened proceeding in respect of which such Indemnified
Party is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of such
proceeding.

     (d) If the indemnification provided for in paragraph (a) or paragraph (b) of this
Section 5 is unavailable to an Indemnified Party or insufficient in respect of any losses,
claims, damages or liabilities, then each Indemnifying Party under such paragraph, in lieu
of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such losses, claims, damages or
liabilities in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party or parties on the one hand and of the Indemnified Party or parties on
the other hand in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the Company and the Holders shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or by the Holders and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or
omission. The Holders’ respective obligations to contribute pursuant to this Section 5(d)
are several in proportion to the respective principal amount of Transfer Restricted
Securities of the applicable Holder that were registered pursuant to a Registration
Statement.

     (e) The Company and each Holder agree that it would not be just or equitable if
contribution pursuant to this Section 5(d) were determined by pro rata allocation or by
any other method of allocation that does not take account of the equitable considerations
referred to in Section 5(d) above. The amount paid or payable by an Indemnified Party as a

21

 

result of the losses, claims, damages and liabilities referred to in Section 5(d)
above shall be deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such Indemnified Party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of
this Section 5, no Holder shall be required to contribute any amount in excess of the
amount by which the total price at which Transfer Restricted Securities were sold by such
Holder exceeds the amount of any damages that such Holder has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged omission.
No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. The remedies provided for in this Section 5 are not
exclusive and shall not limit any rights or remedies which may otherwise be available to
any Indemnified Party at law or in equity.

     The indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this
Agreement, (ii) any investigation made by or on behalf of the Initial Purchasers, any
Holder or any Person controlling the Initial Purchasers or any Holder, or by or on behalf
of the Company, its officers or directors or any Person controlling the Company, (iii)
acceptance of any of the Exchange Securities and (iv) any sale of Transfer Restricted
Securities pursuant to a Shelf Registration Statement.

	 	6.	 	Miscellaneous.

     (a) No Inconsistent Agreements. The Company has not entered into, and on or after
the date of this Agreement will not enter into, any agreement which is inconsistent with
the rights granted to the Holders of Transfer Restricted Securities in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the Holders
hereunder do not in any way conflict with and are not inconsistent with the rights granted
to the holders of the Company’s other issued and outstanding securities under any such
agreements.

     (b) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given unless the Company has
obtained the written consent of Holders of at least a majority in aggregate principal
amount of the outstanding Transfer Restricted Securities affected by such amendment,
modification, supplement, waiver or consent; provided, however, that no amendment,
modification, supplement, waiver or consent to any departure from the provisions of
Section 5 hereof or this paragraph (b) shall be effective as against any

22

 

Holder of Transfer Restricted Securities unless consented to in writing by such
Holder.

     (c) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, registered first-class mail,
facsimile or any courier guaranteeing overnight delivery (i) if to a Holder, at the most
current address given by such Holder to the Company by means of a notice given in
accordance with the provisions of this Section 6(c), which address initially is, with
respect to the Initial Purchasers, the address set forth in the Purchase Agreement; and
(ii) if to the Company, initially at the Company’s address set forth in the Purchase
Agreement and thereafter at such other address, notice of which is given in accordance
with the provisions of this Section 6(c).

     All such notices and communications shall be deemed to have been duly given at the
time delivered by hand, if personally delivered; five Business Days after being deposited
in the mail, postage pre-paid, if mailed; when receipt is acknowledged, if sent by
facsimile; and on the next Business Day if timely delivered to an air courier guaranteeing
overnight delivery.

     Copies of all such notices, demands, or other communications shall be concurrently
delivered by the Person giving the same to the Trustee, at the address specified in the
Indenture.

     (d) Successors and Assigns. This Agreement shall inure to the benefit of, and be
binding upon, the successors, assigns and transferees of each of the parties, including,
without limitation and without the need for an express assignment, subsequent Holders of
Transfer Restricted Securities; provided that nothing herein shall be deemed to permit any
assignment, transfer or other disposition of Transfer Restricted Securities in violation
of the terms of the Securities and the Purchase Agreement. If any transferee of any
Holder shall acquire Transfer Restricted Securities, in any manner, whether by operation
of law or otherwise, such Transfer Restricted Securities shall be held subject to all of
the terms of this Agreement, and by taking and holding such Transfer Restricted Securities
such Person shall be conclusively deemed to have agreed to be bound by and to perform all
of the terms and provisions of this Agreement and such Person shall be entitled to receive
the benefits hereof. The Initial Purchasers shall have no liability or obligation to the
Company with respect to any failure by a Holder to comply with, or any breach by any other
Holder of, any of the obligations of such Holder under this Agreement.

     (e) Purchases and Sales of Securities. The Company shall not, and shall use its
reasonable best efforts to cause its affiliates (as defined in Rule 405 under the 1933
Act) not to, purchase and then resell or otherwise

23

 

transfer any Securities unless such resold or transferred Securities have an
appropriate legend regarding transfer restrictions and the date of such resale or
transfer.

     (f) Third Party Beneficiary. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Company, on the one hand, and the Initial
Purchasers, on the other hand, shall be bound by all of the terms and provisions of this
Agreement and shall have the right to enforce such agreements directly to the extent it
deems such enforcement necessary or advisable to protect its rights or the rights of
Holders hereunder.

     (g) Counterparts. This Agreement may be executed in any number of counterparts and
by the 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.

     (h) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

     (i) Governing Law. This Agreement shall be governed by the laws of the State of New
York.

     (j) Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or
unenforceable the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions contained herein shall not be affected or
impaired thereby.

24

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	TRANSCONTINENTAL GAS PIPE
     LINE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard D. Rodekhor
 

	 	 
	 

	 	 	 	Name: Richard D. Rodekhor	 	 
	 

	 	 	 	Title: Vice President and Treasurer	 	 

Confirmed and accepted as of

the date first above written:

BANC OF AMERICA SECURITIES LLC

and

GREENWICH CAPITAL MARKETS, INC.

on behalf of themselves and the several Initial

Purchasers listed on Schedule I hereto

	 	 	 	 	 
	By:

	 	BANC OF AMERICA SECURITIES LLC	 	 
	 
	 	 	 	 
	 

	 	/s/ Lee E. McKinstrey
 

	 	 
	 

	 	Name: Lee E. McKinstrey	 	 
	 

	 	Title: Managing Director	 	 

 

 

SCHEDULE I

	 
	Initial Purchasers:

	 

	Banc of America Securities LLC

	 

	Greenwich Capital Markets, Inc.

	 

	J.P. Morgan Securities Inc.

	 

	Lehman Brothers Inc.

	 

	Scotia Capital (USA) Inc.

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