Document:

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                                                                    EXHIBIT 4.11

                          THE WILLIAMS COMPANIES, INC.

                                      and

                [                         ], as Collateral Agent

                                      and

        [                                 ], as Securities Intermediary

                                      and

        [                                 ], as Purchase Contract Agent

                                PLEDGE AGREEMENT

                          Dated as of _________, 2002

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                                TABLE OF CONTENTS

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ARTICLE 1
         DEFINITIONS
         SECTION 1.01.  Definitions......................................................................2

ARTICLE 2
         PLEDGE
         SECTION 2.01.  Pledge...........................................................................6
         SECTION 2.02.  Control; Financing Statement.....................................................6
         SECTION 2.03.  Termination......................................................................6

ARTICLE 3
         DISTRIBUTIONS ON PLEDGED COLLATERAL
         SECTION 3.01.  Income Distributions.............................................................7
         SECTION 3.02.  Principal Payments Following Termination Event...................................7
         SECTION 3.03.  Principal Payments Prior to or on Purchase Contract Settlement
                  Date...................................................................................7
         SECTION 3.04.  Payments to Purchase Contract Agent..............................................8
         SECTION 3.05.  Assets Not Properly Released.....................................................8

ARTICLE 4
         CONTROL
         SECTION 4.01.  Establishment of Collateral Account..............................................8
         SECTION 4.02.  Treatment as Financial Assets....................................................9
         SECTION 4.03.  Sole Control by Collateral Agent.................................................9
         SECTION 4.04.  Securities Intermediary's Location...............................................9
         SECTION 4.05.  No Other Claims.................................................................10
         SECTION 4.06.  Investment and Release..........................................................10
         SECTION 4.07.  Statements and Confirmations....................................................10
         SECTION 4.08.  Tax Allocations.................................................................10
         SECTION 4.09.  No Other Agreements.............................................................10
         SECTION 4.10.  Powers Coupled with an Interest.................................................10

ARTICLE 5
         INITIAL DEPOSIT; ESTABLISHMENT OF TREASURY STOCK PURCHASE UNITS AND
         REESTABLISHMENT OF STOCK PURCHASE UNITS
         SECTION 5.01.  Initial Deposit of [Subordinated] Notes.........................................11
         SECTION 5.02.  Establishment of Treasury Stock Purchase Units..................................11
         SECTION 5.03.  Reestablishment of Stock Purchase Units.........................................12
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         SECTION 5.04.  Termination Event...............................................................13
         SECTION 5.05.  Cash Settlement.................................................................15
         SECTION 5.06.  Application of Proceeds in Settlement of Purchase Contracts.....................16
         SECTION 5.07.  Tax Event Redemption............................................................18

ARTICLE 6
         VOTING RIGHTS - PLEDGED [SUBORDINATED] NOTES
         SECTION 6.01.  Voting Rights...................................................................18

ARTICLE 7
         RIGHTS AND REMEDIES
         SECTION 7.01.  Rights and Remedies of the Collateral Agent.....................................19
         SECTION 7.02.  Tax Event Redemption............................................................20
         SECTION 7.03.  Substitutions...................................................................21

ARTICLE 8
         REPRESENTATIONS AND WARRANTIES; COVENANTS
         SECTION 8.01.  Representations and Warranties..................................................21
         SECTION 8.02.  Covenants.......................................................................22

ARTICLE 9
         THE COLLATERAL AGENT AND THE SECURITIES INTERMEDIARY
         SECTION 9.01.  Appointment, Powers and Immunities..............................................22
         SECTION 9.02.  Instructions of the Company.....................................................24
         SECTION 9.03.  Reliance by Collateral Agent and Securities Intermediary........................24
         SECTION 9.04.  Rights in Other Capacities......................................................24
         SECTION 9.05.  Non-Reliance on Collateral Agent and Securities Intermediary....................25
         SECTION 9.06.  Compensation and Indemnity......................................................25
         SECTION 9.07.  Failure to Act..................................................................26
         SECTION 9.08.  Resignation of Collateral Agent and Securities Intermediary.....................27
         SECTION 9.09.  Right to Appoint Agent or Advisor...............................................28
         SECTION 9.10.  Survival........................................................................29
         SECTION 9.11.  Exculpation.....................................................................29

ARTICLE 10
         AMENDMENT
         SECTION 10.01.  Amendment Without Consent of Holders...........................................29
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         SECTION 10.02.  Amendment with Consent of Holders..............................................30
         SECTION 10.03.  Execution of Amendments........................................................31
         SECTION 10.04.  Effect of Amendments...........................................................31
         SECTION 10.05.  Reference of Amendments........................................................31

ARTICLE 11
         MISCELLANEOUS
         SECTION 11.01.  No Waiver......................................................................31
         SECTION 11.02.  Governing Law..................................................................32
         SECTION 11.03.  Notices........................................................................32
         SECTION 11.04.  Successors and Assigns.........................................................32
         SECTION 11.05.  Counterparts...................................................................32
         SECTION 11.06.  Severability...................................................................32
         SECTION 11.07.  Expenses, Etc..................................................................33
         SECTION 11.08.  Security Interest Absolute.....................................................33
         SECTION 11.09.  Notice of Tax Event, Tax Event Redemption and Termination
                  Event.................................................................................34
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Exhibit A -        Instruction from Purchase Contract Agent to Collateral Agent
                     (Establishment of Treasury Stock Purchase Units)
Exhibit B -       Instruction from Collateral Agent to Securities Intermediary
                    (Establishment of Treasury Stock Purchase Units)
Exhibit C -       Instruction from Purchase Contract Agent to Collateral Agent
                    (Reestablishment of Stock Purchase Units)
Exhibit D -       Instruction from Collateral Agent to Securities Intermediary
                    (Reestablishment of Stock Purchase Units)
Exhibit E -       Notice of Cash Settlement from Securities Intermediary to
                  Purchase Contract Agent (Cash Settlement Amounts)

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                                        PLEDGE AGREEMENT

         PLEDGE AGREEMENT, dated as of _____________, 2002, among THE
WILLIAMS COMPANIES, INC., a Delaware corporation (the "COMPANY"), [
                                   ], a _________ banking association, as
collateral agent (in such capacity, together with its successors in such
capacity, the "COLLATERAL AGENT"), [                   ], a ___________ banking
association, as securities intermediary with respect to the Collateral Account
(in such capacity, together with its successors in such capacity, the
"SECURITIES INTERMEDIARY"), and [                        ], an _________ banking
corporation, as purchase contract agent and as attorney-in-fact of the Holders
from time to time of the Securities under the Purchase Contract Agreement (in
such capacity, together with its successors in such capacity, the "PURCHASE
CONTRACT AGENT").

                                    RECITALS

         The Company and the Purchase Contract Agent are parties to the Purchase
Contract Agreement dated as of the date hereof (as modified and supplemented and
in effect from time to time, the "PURCHASE CONTRACT AGREEMENT"), pursuant to
which there may be issued up to _______________________ Stock Purchase Units
(the "SECURITIES").

         Each Stock Purchase Unit, at issuance, consists of a unit comprised of
(a) a stock purchase contract (the "PURCHASE CONTRACT") under which the Holder
will purchase from the Company on the Purchase Contract Settlement Date, for an
amount equal to $[                ] (the "STATED AMOUNT"), a number of shares of
The Williams Companies, Inc. common stock, par value $1.00 ("COMMON STOCK"),
equal to the Settlement Rate, and (b) either beneficial ownership of a Note (as
defined below).

         Pursuant to the terms of the Purchase Contract Agreement and the
Purchase Contracts, the Holders of the Securities have irrevocably authorized
the Purchase Contract Agent, as attorney-in-fact of such Holders, among other
things, to execute and deliver this Agreement on behalf of such Holders and to
grant the pledge provided herein of the Collateral Account to secure the
Obligations.

         Accordingly, the Company, the Collateral Agent, the Securities
Intermediary and the Purchase Contract Agent, on its own behalf and as attorney-
in-fact of the Holders from time to time of the Securities, agree as follows:

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                                    ARTICLE 1
                                   DEFINITIONS

         SECTION 1.01. Definitions. For all purposes of this Agreement, except
as otherwise expressly provided or unless the context otherwise requires:

         (a) the terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular;

         (b) the words "HEREIN," "HEREOF" and "HEREUNDER" and other words of
similar import refer to this Agreement as a whole and not to any particular
Article, Section, Exhibit or other subdivision;

         (c) the following terms which are defined in the UCC shall have the
meanings set forth therein: "CERTIFICATED SECURITY," "CONTROL," "FINANCIAL
ASSET," "ENTITLEMENT ORDER," "SECURITIES ACCOUNT" and "SECURITY ENTITLEMENT";

         (d) the following terms have the meanings assigned to them in the
Purchase Contract Agreement: "ACT," "APPLICABLE OWNERSHIP INTEREST", "BANKRUPTCY
CODE," "BOARD RESOLUTION," "BUSINESS DAY," "CASH SETTLEMENT," "CERTIFICATE,"
"EARLY SETTLEMENT," "EARLY SETTLEMENT DATE," "FAILED REMARKETING", "HOLDER,"
"OFFICERS' CERTIFICATE," "OPINION OF COUNSEL," "OUTSTANDING SECURITIES,"
"PURCHASE CONTRACT," "PURCHASE CONTRACT SETTLEMENT DATE," "PURCHASE PRICE,"
"REDEMPTION AMOUNT", "REDEMPTION PRICE", "REMARKETING AGENT," "REMARKETING
AGREEMENT," "SETTLEMENT RATE," "STOCK PURCHASE UNIT," "[SUBORDINATED] NOTES,"
"TAX EVENT", "TAX EVENT REDEMPTION", "TAX EVENT REDEMPTION DATE", "TERMINATION
EVENT," "TREASURY STOCK PURCHASE UNIT," and "UNDERWRITING AGREEMENT"; and

         (e) the following terms have the meanings given to them in this Section
1.01(e):

         "AGREEMENT" means this Pledge Agreement, as the same may be amended,
modified or supplemented from time to time.

         "CASH" means any coin or currency of the United States as at the time
shall be legal tender for payment of public and private debts.

         "COLLATERAL ACCOUNT" means the collective reference to:

                  (i) the securities account of [                          ], as
         Collateral Agent, maintained by the Securities Intermediary and
         designated "[                   ], as Collateral Agent of The

                                        2

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         Williams Companies, Inc., as pledgee of [                        ], as
         the Purchase Contract Agent on behalf of and as attorney-in-fact for
         the Holders";

                  (ii) all investment property and other financial assets from
         time to time credited to the Collateral Account, including, without
         limitation, (A) the [Subordinated] Notes and security entitlements
         relating thereto which are a component of the Stock Purchase Units from
         time to time, (B) the Applicable Ownership Interests (as specified in
         Clause (A) of the definition of such term) of the Holders with respect
         to the Treasury Portfolio which are a component of the Stock Purchase
         Units from time to time; (C) any Treasury Securities and security
         entitlements relating thereto delivered from time to time upon
         establishment of Treasury Stock Purchase Units in accordance with
         Section 5.02 hereof and (E) payments made by Holders pursuant to
         Section 5.05 hereof;

                  (iii) all Proceeds of any of the foregoing (whether such
         Proceeds arise before or after the commencement of any proceeding under
         any applicable bankruptcy, insolvency or other similar law, by or
         against the pledgor or with respect to the pledgor); and

                  (iv) all powers and rights now owned or hereafter acquired
         under or with respect to the Collateral Account

         ((ii), (iii) and (iv), being collectively referred to as the
"COLLATERAL").

         "COMPANY" means the Person named as the "Company" in the first
paragraph of this instrument until a successor shall have become such, and
thereafter "Company" shall mean such successor.

         "OBLIGATIONS" means, with respect to each Holder, the collective
reference to all obligations and liabilities of such Holder under such Holder's
Purchase Contract, the Purchase Contract Agreement, and this Agreement or any
other document made, delivered or given in connection herewith or therewith, in
each case whether on account of principal, interest (including, without
limitation, interest accruing before and after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to such Holder, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding), fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and disbursements
of counsel to the Company or the Collateral Agent or the Securities Intermediary
that are required to be paid by the Holder pursuant to the terms of any of the
foregoing agreements).

                                        3

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         "PERMITTED INVESTMENTS" means any one of the following which shall
mature not later than the next succeeding Business Day:

                  (1) any evidence of indebtedness with an original maturity of
         365 days or less issued, or directly and fully guaranteed or insured,
         by the United States of America or any agency or instrumentality
         thereof (provided that the full faith and credit of the United States
         of America is pledged in support of the timely payment thereof or such
         indebtedness constitutes a general obligation of it);

                  (2) deposits, certificates of deposit or acceptances with an
         original maturity of 365 days or less of any institution which is a
         member of the Federal Reserve System having combined capital and
         surplus and undivided profits of not less than $200.0 million at the
         time of deposit (and which may include the Collateral Agent);

                  (3) investments with an original maturity of 365 days or less
         of any Person that is fully and unconditionally guaranteed by a bank
         referred to in clause (2);

                  (4) repurchase agreements and reverse repurchase agreements
         relating to marketable direct obligations issued or unconditionally
         guaranteed by the United States Government or issued by any agency
         thereof and backed as to timely payment by the full faith and credit of
         the United States Government;

                  (5) investments in commercial paper, other than commercial
         paper issued by the Company or its affiliates, of any corporation
         incorporated under the laws of the United States or any State thereof,
         which commercial paper has a rating at the time of purchase at least
         equal to "A-1" by Standard & Poor's Ratings Services ("S&P") or at
         least equal to "P-1" by Moody's Investors Service, Inc. ("MOODY'S");
         and

                  (6) investments in money market funds (including, but not
         limited to, money market funds managed by the Collateral Agent or an
         affiliate of the Collateral Agent) registered under the Investment
         Company Act of 1940, as amended, rated in the highest applicable rating
         category by S&P or Moody's.

         "PERSON" means any legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint-stock company, limited
liability company, trust, unincorporated organization or government or any
agency or political subdivision thereof.

                                        4

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         "PLEDGE" means the lien and security interest created by this
Agreement.

         "PLEDGED [SUBORDINATED] NOTES" means [Subordinated] Notes and security
entitlements with respect thereto from time to time credited to the Collateral
Account and not then released from the Pledge.

         "PLEDGED TREASURY SECURITIES" means Treasury Securities and security
entitlements with respect thereto from time to time credited to the Collateral
Account and not then released from the Pledge.

         "PROCEEDS" has the meaning ascribed thereto in the UCC and includes,
without limitation, all interest, dividends, cash, instruments, securities,
financial assets (as defined in Section 8-102(a)(9) of the UCC) and other
property received, receivable or otherwise distributed upon the sale, exchange,
collection or disposition of any financial assets from time to time held in the
Collateral Account.

         "PURCHASE CONTRACT AGENT" has the meaning specified in the paragraph
preceding the recitals of this Agreement.

         "TRADES" means the Treasury/Reserve Automated Debt Entry System
maintained by the Federal Reserve Bank of New York pursuant to the TRADES
Regulations.

         "TRADES REGULATIONS" means the regulations of the United States
Department of the Treasury, published at 31 C.F.R. Part 357, an amended from
time to time. Unless otherwise defined herein, all terms defined in the TRADES
Regulations are used herein as therein defined.

         "TRANSFER" means in the case of certificated securities in registered
form, delivery as provided in Section 8-301(a) of the UCC, indorsed to the
transferee or in blank by an effective endorsement; in the case of Treasury
Securities, registration of the transferee as the owner of such Treasury
Securities on TRADES; and in the case of security entitlements, including,
without limitation, security entitlements with respect to Treasury Securities,
a securities intermediary indicating by book entry that such security
entitlement has been credited to the transferee's securities account.

         "TREASURY SECURITIES" means zero-coupon U.S. treasury securities
(CUSIP No. ___________) which mature on _______________.

         "UCC" means the Uniform Commercial Code as in effect in the State of
New York from time to time.

                                        5

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         "VALUE" means, with respect to any item of Collateral on any date, as
to (1) Cash, the face amount thereof and (2) Treasury Securities or
[Subordinated] Notes, the aggregate principal amount thereof at maturity.

                                    ARTICLE 2
                                     PLEDGE

         SECTION 2.01. Pledge. Each Holder, acting through the Purchase Contract
Agent as such Holder's attorney-in-fact, hereby pledges and grants to the
Collateral Agent, as agent of and for the benefit of the Company, a continuing
first priority security interest in and to, and a lien upon and right of set-off
against, all of such Holder's right, title and interest in and to the Collateral
Account to secure the prompt and complete payment and performance when due
(whether at stated maturity, by acceleration or otherwise) of the Obligations.
The Collateral Agent shall have all of the rights, remedies and recourses with
respect to the Collateral afforded a secured party by the UCC, in addition to,
and not in limitation of, the other rights, remedies and recourses afforded to
the Collateral Agent by this Agreement.

         SECTION 2.02. Control; Financing Statement.

         (a) The Collateral Agent shall have control of the Collateral Account
pursuant to the provisions of Article 4 of this Agreement.

         (b) Subsequent to the date of initial issuance of the Securities, the
Purchase Contract Agent shall deliver to the Collateral Agent a financing
statement prepared by the Company for filing in the Office of the Secretary of
State of the State of New York and any other jurisdictions which the Company
deems necessary, signed by the Purchase Contract Agent, as attorney-in-fact for
the Holders, as Debtors, and describing the Collateral.

         SECTION 2.03. Termination. As to each Holder, this Agreement and the
Pledge created hereby shall terminate upon the satisfaction of such Holder's
Obligations. Upon such termination, the Securities Intermediary shall Transfer
such Holder's portion of the Collateral to the Purchase Contract Agent for
distribution to such Holder in accordance with his interest, free and clear of
any lien, pledge or security interest created hereby.

                                        6

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                                    ARTICLE 3
                       DISTRIBUTIONS ON PLEDGED COLLATERAL

         SECTION 3.01. Income Distributions. All income distributions received
by the Securities Intermediary on account of the the [Subordinated] Notes, the
Applicable Ownership Interest (as specified in clause (A) of the definition of
such term) of the Treasury Portfolio or Permitted Investments from time to time
held in the Collateral Account shall be distributed to the Purchase Contract
Agent (ABA No. [                ], GLA No. [             ], A/C No. [         ],
Re: The Williams Companies, Inc.) for the benefit of the applicable Holders as
provided in the Purchase Contracts or Purchase Contract Agreement.

         SECTION 3.02. Principal Payments Following Termination Event. All
payments received by the Securities Intermediary following a Termination Event
of (1) the aggregate principal amount of the Pledged [Subordinated] Notes or
securities entitlements thereto, or (2) the Applicable Ownership Interests (as
specified in Clause (A) of the definition thereof) of the Treasury Portfolio, or
(3) the principal amount of the Pledged Treasury Securities, shall be
distributed to the Purchase Contract Agent for the benefit of the applicable
Holders for distribution to such Holders in accordance with their respective
interests.

         SECTION 3.03. Principal Payments Prior to or on Purchase Contract
Settlement Date.

         (a) Subject to the provisions of Section 5.07 and Section ?, and except
as provided in clause 3.03(b) below, if no Termination Event shall have
occurred, all payments received by the Securities Intermediary of (1) the
aggregate principal amount with respect to the Pledged [Subordinated] Notes or
security entitlements with respect thereto, (2) the principal amount of
Applicable Ownership Interests (as specified in Clause (A) of the definition
thereof) of the Treasury Portfolio, or (3) the principal amount of Pledged
Treasury Securities, shall be held and invested in Permitted Investments until
the Purchase Contract Settlement Date and on the Purchase Contract Settlement
Date distributed to the Company as provided in Section 5.06 hereof. Any balance
remaining in the Collateral Account shall be distributed to the Purchase
Contract Agent for the benefit of the applicable Holders for distribution to
such Holders in accordance with their respective interests. Upon the request of
the Securities Intermediary, the Company shall instruct the Securities
Intermediary as to the type of Permitted Investments in which any payments made
under this Section shall be invested, provided, however, that if the Company
fails to deliver such instructions by 10:30 a.m. (New York City time), the
Securities Intermediary shall invest such payments in the Permitted Investments
described in clause (6) of the definition of Permitted Investments.

                                        7

<PAGE>

         (b) All payments received by the Securities Intermediary of (1) the
aggregate principal amount with respect to the Pledged [Subordinated] Notes or
security entitlements with respect thereto, (2) Applicable Ownership interests
(as specified in Clause (A) of the definition thereof) of the Treasury
Portfolio, or (3) the principal amount of Treasury Securities or security
entitlements with respect thereto, that, in each case, have been released from
the Pledge shall be distributed to the Purchase Contract Agent for the benefit
of the applicable Holders for distribution to such Holders in accordance with
their respective interests.

         SECTION 3.04. Payments to Purchase Contract Agent. The Securities
Intermediary shall use all commercially reasonable efforts to deliver payments
to the Purchase Contract Agent hereunder to the account designated by the
Purchase Contract Agent for such purpose not later than 12:00 p.m. (New York
City time) on the Business Day such payment is received by the Securities
Intermediary; provided, however, that if such payment is received on a day that
is not a Business Day or after 11:00 a.m. (New York City time) on a Business
Day, then the Securities Intermediary shall use all commercially reasonable
efforts to deliver such payment no later than 10:30 a.m. (New York City time) on
the next succeeding Business Day.

         SECTION 3.05. Assets Not Properly Released. If the Purchase Contract
Agent or any Holder shall receive any principal payments on account of financial
assets credited to the Collateral Account and not released therefrom in
accordance with this Agreement, the Purchase Contract Agent or such Holder shall
hold the same as trustee of an express trust for the benefit of the Company and,
upon receipt of an Officers' Certificate of the Company so directing, promptly
deliver the same to the Securities Intermediary for credit to the Collateral
Account or to the Company for application to the Obligations of the Holders, and
the Purchase Contract Agent and Holders shall acquire no right, title or
interest in any such payments of principal amounts so received.

                                    ARTICLE 4
                                     CONTROL

         SECTION 4.01. Establishment of Collateral Account. The Securities
Intermediary hereby confirms that:

         (a) the Securities Intermediary has established the Collateral Account;

         (b) the Collateral Account is a securities account;

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<PAGE>

         (c) subject to the terms of this Agreement, the Securities Intermediary
shall identify in its records the Purchase Contract Agent as the entitlement
holder entitled to exercise the rights that comprise any financial asset
credited to the Collateral Account;

         (d) all property delivered to the Securities Intermediary pursuant to
this Agreement or the Purchase Contract Agreement will be credited promptly to
the Collateral Account;

         (e) all securities or other property underlying any financial assets
credited to the Collateral Account shall be registered in the name of the
Securities Intermediary, indorsed to the Securities Intermediary or in blank, or
credited to another securities account maintained in the name of the Securities
Intermediary, and in no case will any financial asset credited to the Collateral
Account be registered in the name of the Purchase Contract Agent or any Holder,
payable to the order of the Purchase Contract Agent or any Holder or specially
indorsed to the Purchase Contract Agent or any Holder.

         SECTION 4.02. Treatment as Financial Assets. Each item of property
(whether investment property, financial asset, security, instrument or cash)
credited to the Collateral Account shall be treated as a financial asset.

         SECTION 4.03. Sole Control by Collateral Agent. Except as provided in
Section 6.01, at all times prior to the termination of the Pledge, the
Collateral Agent shall have sole control of the Collateral Account, and the
Securities Intermediary shall take instructions and directions with respect to
the Collateral Account solely from the Collateral Agent. If at any time the
Securities Intermediary shall receive an entitlement order issued by the
Collateral Agent and relating to the Collateral Account, the Securities
Intermediary shall comply with such entitlement order without further consent by
the Purchase Contract Agent or any Holder or any other Person. Until termination
of the Pledge, the Securities Intermediary will not comply with any entitlement
orders issued by the Purchase Contract Agent or any Holder.

         SECTION 4.04. Securities Intermediary's Location. The Collateral
Account, and the rights and obligations of the Securities Intermediary, the
Collateral Agent, the Purchase Contract Agent and the Holders with respect
thereto, shall be governed by the laws of the State of New York. Regardless of
any provision in any other agreement, for purposes of the UCC, New York shall be
deemed to be the Securities Intermediary's location.

                                        9

<PAGE>

         SECTION 4.05. No Other Claims. Except for the claims and interest of
the Collateral Agent and of the Purchase Contract Agent and the Holders in the
Collateral Account, the Securities Intermediary (without making any
investigation) does not know of any claim to, or interest in, the Collateral
Account or in any financial asset credited thereto. If any Person asserts any
lien, encumbrance or adverse claim (including any writ, garnishment, judgment,
warrant of attachment, execution or similar process) against the Collateral
Account or in any financial asset carried therein, the Securities Intermediary
will promptly notify the Collateral Agent and the Purchase Contract Agent.

         SECTION 4.06. Investment and Release. All proceeds of financial assets
from time to time deposited in the Collateral Account shall be invested and
reinvested as provided in this Agreement. At all times prior to termination of
the Pledge, no property shall be released from the Collateral Account except in
accordance with this Agreement or upon written instructions of the Collateral
Agent.

         SECTION 4.07. Statements and Confirmations. The Securities Intermediary
will promptly send copies of all statements, confirmations and other
correspondence concerning the Collateral Account and any financial assets
credited thereto simultaneously to each of the Purchase Contract Agent and the
Collateral Agent at their addresses for notices under this Agreement.

         SECTION 4.08. Tax Allocations. The Purchase Contract Agent shall report
all items of income, gain, expense and loss recognized in the Collateral
Account, to the extent such reporting is required by law, to the Internal
Revenue Service and all state and local taxing authorities under the names and
taxpayer identification numbers of the Holders which are the beneficial owners
thereof. Neither the Securities Intermediary nor the Collateral Agent shall have
any tax reporting duties hereunder.

         SECTION 4.09. No Other Agreements. The Securities Intermediary has not
entered into, and prior to the termination of the Pledge will not enter into,
any agreement with any other Person relating to the Collateral Account or any
financial assets credited thereto, including, without limitation, any agreement
to comply with entitlement orders of any Person other than the Collateral Agent.

         SECTION 4.10. Powers Coupled with an Interest. The rights and powers
granted in this Article 4 to the Collateral Agent have been granted in order to
perfect its security interests in the Collateral Account, are powers coupled
with an interest and will be affected neither by the bankruptcy of the Purchase
Contract Agent or any Holder nor by the lapse of time. The obligations of the
Securities

                                       10

<PAGE>

Intermediary under this Article 4 shall continue in effect until the termination
of the Pledge.

                                    ARTICLE 5
       INITIAL DEPOSIT; ESTABLISHMENT OF TREASURY STOCK PURCHASE UNITS AND
                     REESTABLISHMENT OF STOCK PURCHASE UNITS

         SECTION 5.01. Initial Deposit of [Subordinated] Notes. Prior to or
concurrently with the execution and delivery of this Agreement, the Purchase
Contract Agent, on behalf of the initial Holders of the Stock Purchase Units,
shall Transfer to the Securities Intermediary, for credit to the Collateral
Account, the [Subordinated] Notes or security entitlements relating thereto, and
the Securities Intermediary shall indicate by book-entry that a securities
entitlement to such [Subordinated] Notes has been credited to the Collateral
Account.

         SECTION 5.02. Establishment of Treasury Stock Purchase Units.

         (a) So long as no Tax Event Redemption shall have occurred, at any time
prior to or on the seventh Business Day immediately preceding the Purchase
Contract Settlement Date, a Holder of Stock Purchase Units shall have the right
to establish or reestablish Treasury Stock Purchase Units by substitution of
Treasury Securities or security entitlements with respect thereto for the
Pledged [Subordinated] Notes comprising a part of such Holder's Stock Purchase
Units in integral multiples of [20] Stock Purchase Units by:

                  (i) Transferring to the Securities Intermediary for credit to
         the Collateral Account Treasury Securities or security entitlements
         with respect thereto having a Value equal to the aggregate liquidation
         amount of the Pledged [Subordinated] Notes to be released, accompanied
         by a notice, substantially in the form of Exhibit C to the Purchase
         Contract Agreement, whereupon the Purchase Contract Agent shall deliver
         to the Collateral Agent a notice, substantially in the form of Exhibit
         A hereto, (A) stating that such Holder has Transferred Treasury
         Securities or security entitlements with respect thereto to the
         Securities Intermediary for credit to the Collateral Account, (B)
         stating the Value of the Treasury Securities or security entitlements
         with respect thereto Transferred by such Holder and (C) requesting that
         the Collateral Agent release from the Pledge the Pledged [Subordinated]
         Notes that are a component of such Stock Purchase Units; and

                                       11

<PAGE>

                  (ii) delivering the related Stock Purchase Units to the
         Purchase Contract Agent.

         Upon receipt of such notice and confirmation that Treasury Securities
or security entitlements with respect thereto have been credited to the
Collateral Account as described in such notice, the Collateral Agent shall
instruct the Securities Intermediary by a notice, substantially in the form of
Exhibit B hereto, to release such Pledged [Subordinated] Notes from the Pledge
by Transfer to the Purchase Contract Agent for distribution to such Holder, free
and clear of any lien, pledge or security interest created hereby.

         (b) If a Tax Event Redemption has occurred and the Treasury Portfolio
has become a component of the Stock Purchase Units, a Holder of Stock Purchase
Units shall not have the right to establish or reestablish Treasury Stock
Purchase Units.

         (c) Upon credit to the Collateral Account of Treasury Securities or
security entitlements with respect thereto delivered by a Holder of Stock
Purchase Units and receipt of the related instruction from the Collateral Agent,
the Securities Intermediary shall release the Pledged [Subordinated] Notes, as
the case may be, and shall promptly transfer the same to the Purchase Contract
Agent for distribution to such Holder, free and clear of any lien, pledge or
security interest created hereby.

         SECTION 5.03. Reestablishment of Stock Purchase Units.

         (a) So long as no Tax Event Redemption shall have occurred, at any time
on or prior to the seventh Business Day immediately preceding the Purchase
Contract Settlement Date, a Holder of Treasury Stock Purchase Units shall have
the right to reestablish Stock Purchase Units by substitution of [Subordinated]
Notes or security entitlements with respect thereto for Pledged Treasury
Securities in integral multiples of 40 Treasury Stock Purchase Units by:

                  (i) Transferring to the Securities Intermediary for credit to
         the Collateral Account [Subordinated] Notes or security entitlements
         with respect thereto having a principal amount equal to the Value of
         the Pledged Treasury Securities to be released, accompanied by a
         notice, substantially in the form of Exhibit C to the Purchase Contract
         Agreement, whereupon the Purchase Contract Agent shall deliver to the
         Collateral Agent a notice, substantially in the form of Exhibit C
         hereto, stating that such Holder has Transferred the [Subordinated]
         Notes or security entitlements with respect thereto to the Securities
         Intermediary for credit to the Collateral Account and requesting that
         the Collateral Agent release from the Pledge the Pledged Treasury
         Securities related to such Treasury Stock Purchase Units; and

                                       12

<PAGE>

                  (ii) delivering the related Treasury Stock Purchase Units to
         the Purchase Contract Agent.

         Upon receipt of such notice and confirmation that [Subordinated] Notes
or security entitlements with respect thereto have been credited to the
Collateral Account as described in such notice, the Collateral Agent shall
instruct the Securities Intermediary by a notice in the form provided in Exhibit
D to release such Pledged Treasury Securities from Pledge by Transfer to the
Purchase Contract Agent for distribution to such Holder, free and clear of any
lien, pledge or security interest created hereby.

         (b) If a Tax Event Redemption has occurred and the Treasury Portfolio
has become a component of the Stock Purchase Units, a holder of a Treasury Stock
Purchase Unit shall not have the right to reestablish a Stock Purchase Unit.

         SECTION 5.04. Termination Event.

         (a) Upon receipt by the Collateral Agent of written notice from the
Company or the Purchase Contract Agent that a Termination Event has occurred,
the Collateral Agent shall release all Collateral from the Pledge and shall
promptly Transfer:

                  (i) any Pledged [Subordinated] Notes or security entitlements
         with respect thereto or the Applicable Ownership Interest (as specified
         in clause (A) of the definition of such term) of the Treasury Portfolio
         (if a Tax Event Redemption has occurred and the Treasury Portfolio has
         become a component of the Stock Purchase Units);

                  (ii) any Pledged Treasury Securities, and

                  (iii) payments by Holders (or the Permitted Investments of
         such payments) pursuant to Section 5.05 hereof,

to the Purchase Contract Agent for the benefit of the Holders for distribution
to such Holders in accordance with their respective interests, free and clear of
any lien, pledge or security interest or other interest created hereby;
provided, however, if any Holder shall be entitled to receive less than $1,000
with respect to his interest in the Applicable Ownership Interest (as specified
in clause (A) of the definition of such term) of the Treasury Portfolio, the
Purchase Contract Agent shall have the right to dispose of such interest for
cash and deliver to such Holder

                                       13

<PAGE>

cash in lieu of delivering the Applicable Ownership Interest (as specified in
clause (A) of the definition of such term) of the Treasury Portfolio.

          (b) If such Termination Event shall result from the Company's becoming
a debtor under the Bankruptcy Code, and if the Collateral Agent shall for any
reason fail promptly to effectuate the release and Transfer of all Pledged
[Subordinated] Notes, the Applicable Ownership Interest (as specified in clause
(A) of the definition of such term) of the Treasury Portfolio, the Pledged
Treasury Securities or payments by Holders (or the Permitted Investments of such
payments) pursuant to Section 5.05 hereof, as the case may be, as provided by
this Section 5.04, the Purchase Contract Agent shall:

                  (i) use its best efforts to obtain an opinion of a nationally
         recognized law firm reasonably acceptable to the Collateral Agent to
         the effect that, as a result of the Company's being the debtor in such
         a bankruptcy case, the Collateral Agent will not be prohibited from
         releasing or Transferring the Collateral as provided in this Section
         5.04, and shall deliver such opinion to the Collateral Agent within ten
         days after the occurrence of such Termination Event, and if (A) the
         Purchase Contract Agent shall be unable to obtain such opinion within
         ten days after the occurrence of such Termination Event or (B) the
         Collateral Agent shall continue, after delivery of such opinion, to
         refuse to effectuate the release and Transfer of all Pledged
         [Subordinated] Notes, Applicable Ownership Interest (as specified in
         clause (A) of the definition of such term) of the Treasury Portfolio,
         the Pledged Treasury Securities, the payments by Holders or the
         Permitted Investments of such payments pursuant to Section 5.05 hereof
         or the Proceeds of any of the foregoing, as the case may be, as
         provided in this Section 5.04, then the Purchase Contract Agent shall
         within fifteen days after the occurrence of such Termination Event
         commence an action or proceeding in the court having jurisdiction of
         the Company's case under the Bankruptcy Code seeking an order requiring
         the Collateral Agent to effectuate the release and transfer of all
         Pledged [Subordinated] Notes, Applicable Ownership Interest (as
         specified in clause (A) of the definition of such term) of the Treasury
         Portfolio, the Pledged Treasury Securities, or the payments by Holders
         or the Permitted Investments of such payments pursuant to Section 5.05
         hereof, or as the case may be, as provided by this Section 5.04; or

                  (ii) commence an action or proceeding like that described in
         clause 5.04(b)(i) hereof within ten days after the occurrence of such
         Termination Event.

                                       14

<PAGE>
         SECTION 5.05.  Cash Settlement.

         (a) Upon receipt by the Collateral Agent of (1) a notice from the
Purchase Contract Agent promptly after the receipt by the Purchase Contract
Agent of a notice from a Holder of Stock Purchase Units that such Holder has
elected, in accordance with the procedures specified in Section 5.02(a)(i) or
(d)(i) of the Purchase Contract Agreement, respectively, to effect a Cash
Settlement and (2) payment by such Holder by deposit in the Collateral Account
prior to 11:00 a.m. (New York City time) on the fifth Business Day immediately
preceding the Purchase Contract Settlement Date, in the case of a Stock Purchase
Unit, unless a Tax Event Redemption has occurred, or on the Business Day prior
to the Purchase Contract Settlement Date in the case of Treasury Stock Purchase
or a Stock Purchase Unit, if a Tax Event Redemption has occurred, of the
Purchase Price in lawful money of the United States by certified or cashier's
check or wire transfer of immediately available funds payable to or upon the
order of the Securities Intermediary, then the Collateral Agent shall:

                  (i) instruct the Securities Intermediary promptly to invest
         any such Cash in Permitted Investments;

                  (ii) release from the Pledge the Stock Purchase Unit holder's
         or the Treasury Stock Purchase Unit holder's related Pledged
         [Subordinated] Notes, Applicable Ownership Interest (as specified in
         clause (A) of the definition of such term) of the Treasury Portfolio,
         or Pledged Treasury Securities, as applicable, as to which such Holder
         has elected to effect a Cash Settlement pursuant to this Section
         5.05(a); and

                  (iii) instruct the Securities Intermediary to Transfer all
         such Pledged [Subordinated] Notes, Applicable Ownership Interest (as
         specified in clause (A) of the definition of such term) of the Treasury
         Portfolio, or the Pledged Treasury Securities, as the case may be, to
         the Purchase Contract Agent for the benefit of such Holder, in each
         case free and clear of the Pledge created hereby, for distribution to
         such Holder.

         Upon the request of the Securities Intermediary, the Company shall
instruct the Securities Intermediary in writing as to the type of Permitted
Investments in which any such Cash shall be invested; provided, however, that if
the Company fails to deliver such written instructions by 10:30 a.m. (New York
City time), the Securities Intermediary shall invest such Cash in the Permitted
Investments described in clause (6) of the definition of Permitted Investments.

         Upon receipt of the proceeds upon the maturity of the Permitted
Investments on the Purchase Contract Settlement Date, the Collateral Agent shall
(A) instruct the Securities Intermediary to pay the portion of such proceeds and
deliver any certified or cashier's checks received, in an aggregate amount equal
to

                                       15

<PAGE>

the Purchase Price, to the Company on the Purchase Contract Settlement Date, and
(B) instruct the Securities Intermediary to release any amounts in excess of the
Purchase Price earned from such Permitted Investments to the Purchase Contract
Agent for distribution to such Holder.

          (b) If a Holder of Stock Purchase Units (if a Tax Event Redemption
shall not have occurred) notifies the Purchase Contract Agent as provided in
paragraph 5.02(a)(i) of the Purchase Contract Agreement of its intention to pay
the Purchase Price in cash, but fails to make such payment as required by
paragraph 5.02(a)(ii) of the Purchase Contract Agreement, such Holder shall be
deemed to have consented to the disposition of such Holder's Pledged
[Subordinated] Notes in accordance with paragraph 5.02(a)(iii) of the Purchase
Contract Agreement.

          (c) If a Holder of a Treasury Stock Purchase Unit or a Holder of Stock
Purchase Unit (if a Tax Event Redemption shall have occurred) notifies the
Purchase Contract Agent as provided in paragraph 5.02(d)(i) of the Purchase
Contract Agreement of its intention to pay the Purchase Price in cash, but fails
to make such payment as required by paragraph 5.02(d)(ii) of the Purchase
Contract Agreement, such Holder shall be deemed to have elected to pay the
Purchase Price in accordance with paragraph 5.02(d)(iii) of the Purchase
Contract Agreement.

          (d) As soon as practicable after 11:00 a.m. (New York City time) on
the fifth Business Day immediately preceding the Purchase Contract Settlement
Date, the Securities Intermediary shall deliver to the Purchase Contract Agent a
notice, substantially in the form of Exhibit E hereto, stating (i) the amount of
cash that it has received with respect to the Cash Settlement of Stock Purchase
Units and (ii) the amount of cash that it has received with respect to the Cash
Settlement of Treasury Stock Purchase Units.

         SECTION 5.06.  Application of Proceeds in Settlement of Purchase
Contracts.

          (a) If a Holder of Stock Purchase Units (if a Tax Event Redemption has
not occurred) has not elected to make an effective Cash Settlement by notifying
the Purchase Contract Agent in the manner provided for in Section 5.02(a)(i) in
the Purchase Contract Agreement, or has given such notice but failed to deliver
the required cash prior to 11:00 a.m. (New York City time) on the fifth Business
Day immediately preceding the Purchase Contract Settlement Date, such Holder
shall be deemed to have elected to pay for the shares of Common Stock to be
issued under such Purchase Contracts from the Proceeds of the remarketing of the
related Pledged [Subordinated] Notes. Upon written notice of such event from the
Purchase Contract Agent, the Collateral Agent shall instruct the Securities

                                       16

<PAGE>

Intermediary to Transfer the related Pledged [Subordinated] Notes to the
Remarketing Agent for remarketing. Upon receiving such Pledged [Subordinated]
Notes, the Remarketing Agent, pursuant to the terms of the Remarketing
Agreement, will use reasonable efforts to remarket such Pledged [Subordinated]
Notes. The Remarketing Agent will deposit the Proceeds of such remarketing (less
$[ ] per each [Subordinated] Note remarketed, which shall be retained by the
Remarketing Agent as a fee for its services in the Remarketing) in the
Collateral Account, and the Securities Intermediary shall invest the Proceeds of
the remarketing in Permitted Investments in clause (6) of the definition of
Permitted Investments. On the Purchase Contract Settlement Date, the Purchase
Contract Agent shall give written direction to the Collateral Agent specifying
the instruction the Collateral Agent shall give to the Securities Intermediary
in order to apply a portion of the Proceeds from such remarketing equal to the
aggregate principal amount of such Pledged [Subordinated] Note to satisfy in
full such Holder's obligations to pay the Purchase Price to purchase the shares
of Common Stock under the related Purchase Contracts and the balance of the
Proceeds from the remarketing, if any, that shall be transferred to the Purchase
Contract Agent for the benefit of such Holder for distribution to such Holder.

         If the Remarketing Agent advises the Collateral Agent in writing that
there has been a Failed Remarketing, thus resulting in an event of default under
the Purchase Contract Agreement and hereunder, the Collateral Agent, for the
benefit of the Company shall, at the written direction of the Company, use
commercially reasonable efforts to dispose of the Pledged [Subordinated] Notes
in accordance with applicable law and apply the proceeds from such disposition
towards such Holder's obligations to pay the Purchase Price for the shares of
Common Stock.

          (b) If a Holder of a Treasury Stock Purchase Unit or a Holder of Stock
Purchase Unit (if a Tax Event Redemption has occurred) has not elected to make
an effective Cash Settlement by notifying the Purchase Contract Agent in the
manner provided for in Section 5.02(d)(i) of the Purchase Contract Agreement, or
has given such notice but failed to make such payment in the manner required by
Section 5.02(d)(ii) of the Purchase Contract Agreement, such Holder shall be
deemed to have elected to pay for the shares of Common Stock to be issued under
such Purchase Contracts from the Proceeds of the related Pledged Treasury
Securities or such Applicable Ownership Interest (as specified in clause (A) of
the definition of such term) of the Treasury Portfolio, as the case may be.
Promptly, after 11:00 a.m. (New York City time) on the Business Day immediately
prior to the Purchase Contract Settlement Date, the Securities Intermediary
shall invest the Cash Proceeds of the maturing Pledged Treasury Securities or
such Applicable Ownership Interest (as specified in clause (A) of the definition
of such term) of the Treasury Portfolio, as the case may be, in Permitted
Investments in clause 6 of the definition of Permitted Investments, unless prior
to 10:30 a.m. (New York

                                       17

<PAGE>

City time), the Company shall otherwise instruct the Securities Intermediary as
to the type of Permitted Investments in which any such Cash Proceeds shall be
invested. Without receiving any instruction from any such Holder, the Collateral
Agent shall apply the Proceeds of the related Pledged Treasury Securities or
such Applicable Ownership Interest (as specified in clause (A) of the definition
of such term) of the Treasury Portfolio, as the case may be, to the settlement
of such Purchase Contracts on the Purchase Contract Settlement Date. In the
event the sum of the Proceeds from the related Pledged Treasury Securities or
such Applicable Ownership Interest (as specified in clause (A) of the definition
of such term) of the Treasury Portfolio as the case may be, and the investment
earnings from the investment in Permitted Investments exceeds the aggregate
Purchase Price of the Purchase Contracts being settled thereby, the Collateral
Agent shall instruct the Securities Intermediary to distribute such excess, when
received, to the Purchase Contract Agent for the benefit of such Holder for
distribution to such Holder.

         SECTION 5.07. Tax Event Redemption. If the Securities Intermediary
receives written notice that a Tax Event Redemption has occurred prior to the
Purchase Contract Settlement Date, the Securities Intermediary shall apply the
Redemption Amount to purchase the Treasury Portfolio and the Securities
Intermediary shall credit the Applicable Ownership Interest (as specified in
clause (A) of the definition of such term) of the Treasury Portfolio to the
Collateral Account and shall transfer the Applicable Ownership Interest (as
specified in clause (B) of the definition of such term) of the Treasury
Portfolio to the Purchase Contract Agent for distribution to the Holders of the
Stock Purchase Units. Upon credit to the Collateral Account of the Applicable
Ownership Interest (as specified in clause (A) of the definition of such term)
of the Treasury Portfolio having a Value equal to the aggregate principal amount
of the Pledged [Subordinated] Notes, the Securities Intermediary shall release
the Pledged [Subordinated] Notes, as applicable, from the Collateral Account and
shall promptly transfer the Pledged [Subordinated] Notes to the Company, as
applicable.

                                    ARTICLE 6
                  VOTING RIGHTS - PLEDGED [SUBORDINATED] NOTES

         SECTION 6.01. Voting Rights. The Purchase Contract Agent may exercise,
or refrain from exercising, any and all voting and other consensual rights
pertaining to the Pledged [Subordinated] Notes or any part thereof for any
purpose not inconsistent with the terms of this Agreement and in accordance with
the terms of the Purchase Contract Agreement; provided, that the Purchase
Contract Agent shall not exercise or shall not refrain from exercising such
right, as the case

                                       18

<PAGE>

may be, if, in the judgment of the Purchase Contract Agent, such action would
impair or otherwise have a material adverse effect on the value of all or any of
the Pledged [Subordinated] Notes; and provided, further, that the Purchase
Contract Agent shall give the Company and the Collateral Agent at least five
Business Days' prior written notice of the manner in which it intends to
exercise, or its reasons for refraining from exercising, any such right. Upon
receipt of any notices and other communications in respect of any Pledged
[Subordinated] Notes, including notice of any meeting at which holders of the
[Subordinated] Notes are entitled to vote or solicitation of consents, waivers
or proxies of holders of the [Subordinated] Notes, the Collateral Agent shall
use reasonable efforts to send promptly to the Purchase Contract Agent such
notice or communication, and as soon as reasonably practicable after receipt of
a written request therefor from the Purchase Contract Agent, execute and deliver
to the Purchase Contract Agent such proxies and other instruments in respect of
such Pledged [Subordinated] Notes (in form and substance satisfactory to the
Collateral Agent) as are prepared by the Purchase Contract Agent with respect to
the Pledged [Subordinated] Notes.

                                    ARTICLE 7
                               RIGHTS AND REMEDIES

         SECTION 7.01. Rights and Remedies of the Collateral Agent.

         (a) In addition to the rights and remedies specified in Section 5.06
hereof or otherwise available at law or in equity, after an event of default (as
specified in Section 7.01(b) below) hereunder, the Collateral Agent shall have
all of the rights and remedies with respect to the Collateral of a secured party
under the UCC (whether or not the UCC is in effect in the jurisdiction where the
rights and remedies are asserted) and the TRADES Regulations and such additional
rights and remedies to which a secured party is entitled under the laws in
effect in any jurisdiction where any rights and remedies hereunder may be
asserted. Without limiting the generality of the foregoing, such remedies may
include, to the extent permitted by applicable law, (1) retention of the Pledged
[Subordinated] Notes, Pledged Treasury Securities or the appropriate Applicable
Ownership Interest (as specified in clause (A) of the definition of such term)
in full satisfaction of the Holders' obligations under the Purchase Contracts
and the Purchase Contract Agreement or (2) sale of the Pledged [Subordinated]
Notes, Pledged Treasury Securities or the appropriate Applicable Ownership
Interest (as specified in clause (A) of the definition of such term) in one or
more public or private sales.

                                       19

<PAGE>

         (b) Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, in the event the Collateral Agent is unable
to make payments to the Company on account of the appropriate Applicable
Ownership Interest (as specified in clause (A) of the definition of such term)
of the Treasury Portfolio, or on account of principal payments of any Pledged
Treasury Securities as provided in Article 3 hereof, in satisfaction of the
Obligations of the Holder of the Stock Purchase Units (if a Tax Event Redemption
has occurred) of which such appropriate Applicable Ownership Interest (as
specified in clause (A) of the definition of such term) of the Treasury
Portfolio or the Holder of the Treasury Stock Purchase Units of which such
Pledged Treasury Securities, as applicable, is a part under the related Purchase
Contracts, the inability to make such payments shall constitute an event of
default hereunder and the Collateral Agent shall have and may exercise, with
reference to such Pledged Treasury Securities or the appropriate Applicable
Ownership Interest (as specified in clause (A) of the definition of such term)
of the Treasury Portfolio, as applicable, any and all of the rights and remedies
available to a secured party under the UCC and the TRADES Regulations after
default by a debtor, and as otherwise granted herein or under any other law.

         (c) Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, the Collateral Agent is hereby irrevocably
authorized to receive and collect all payments of (i) the principal amount of
the Pledged [Subordinated] Notes, (ii) the principal amount of the Pledged
Treasury Securities and (iii) the principal amount of the Applicable Ownership
Interest (as specified in clause (A) of the definition of such term) of the
Treasury Portfolio, subject, in each case, to the provisions of Section 3
hereof, and as otherwise granted herein.

         (d) The Purchase Contract Agent and each Holder of Securities agrees
that, from time to time, upon the written request of the Collateral Agent or the
Purchase Contract Agent, such Holder shall execute and deliver such further
documents and do such other acts and things as the Collateral Agent may
reasonably request in order to maintain the Pledge, and the perfection and
priority thereof, and to confirm the rights of the Collateral Agent hereunder.
The Purchase Contract Agent shall have no liability to any Holder for executing
any documents or taking any such acts requested by the Collateral Agent
hereunder, except for liability for its own negligent acts, its own negligent
failure to act or its own willful misconduct.

         SECTION 7.02. Tax Event Redemption. Upon the occurrence of a Tax Event
Redemption prior to the Purchase Contract Settlement Date, the Redemption
Amount, plus any accumulated and unpaid distributions, or any accrued and unpaid
interest, as the case may be, payable on the Tax Event

                                       20

<PAGE>

Redemption Date with respect to the Applicable Principal Amount shall be
credited to the Collateral Account by the Indenture Trustee, on or prior to
12:30 p.m., New York City time on such Tax Event Redemption Date, by federal
funds check or wire transfer of immediately available funds. The Collateral
Agent is hereby authorized to present the Pledged [Subordinated] Notes for
payment as may be required by their respective terms. Upon receipt of such
funds, the Pledged [Subordinated] Notes, as the case may be, shall be released
from the Collateral Account. In the event such funds are credited to the
Collateral Account, the Collateral Agent, at the written direction of the
Company, shall instruct the Securities Intermediary to (a) apply an amount equal
to the Redemption Amount of such funds to purchase the Treasury Portfolio from
the Quotation Agent for credit to the Collateral Account and (b) promptly remit
the remaining portion of such funds, if any, to the Purchase Contract Agent for
payment to the Holders of Stock Purchase Units.

         SECTION 7.03. Substitutions. Whenever a Holder has the right to
substitute Treasury Securities, [Subordinated] Notes or security entitlements
for any of them or the appropriate Applicable Ownership Interest of the Treasury
Portfolio, as the case may be, for financial assets held in the Collateral
Account, such substitution shall not constitute a novation of the security
interest created hereby.

                                    ARTICLE 8
                    REPRESENTATIONS AND WARRANTIES; COVENANTS

         SECTION 8.01. Representations and Warranties. Each Holder from time to
time, acting through the Purchase Contract Agent as attorney-in-fact (it being
understood that the Purchase Contract Agent shall not be liable for any
representation or warranty made by or on behalf of a Holder), hereby represents
and warrants to the Collateral Agent (with respect to such Holder's interest in
the Collateral), which representations and warranties shall be deemed repeated
on each day a Holder Transfers Collateral that:

         (a) such Holder has the power to grant a security interest in and lien
on the Collateral;

         (b) such Holder is the sole beneficial owner of the Collateral and, in
the case of Collateral delivered in physical form, is the sole holder of such
Collateral and is the sole beneficial owner of, or has the right to Transfer,
the Collateral it Transfers to the Securities Intermediary for credit to the
Collateral Account, free and clear of any security interest, lien, encumbrance,
call, liability to pay money or

                                       21

<PAGE>

other restriction other than the security interest and lien granted under
Article 2 hereof;

         (c) upon the Transfer of the Collateral to the Securities Intermediary
for credit to the Collateral Account, the Collateral Agent, for the benefit of
the Company, will have a valid and perfected first priority security interest
therein (assuming that any central clearing operation or any securities
intermediary or other entity not within the control of the Holder involved in
the Transfer of the Collateral, including the Collateral Agent and the
Securities Intermediary, gives the notices and takes the action required of it
hereunder and under applicable law for perfection of that interest and assuming
the establishment and exercise of control pursuant to Article 4 hereof); and

         (d) the execution and performance by the Holder of its obligations
under this Agreement will not result in the creation of any security interest,
lien or other encumbrance on the Collateral other than the security interest and
lien granted under Article 2 hereof or violate any provision of any existing law
or regulation applicable to it or of any mortgage, charge, pledge, indenture,
contract or undertaking to which it is a party or which is binding on it or any
of its assets.

         SECTION 8.02. Covenants. The Holders from time to time, acting through
the Purchase Contract Agent as their attorney-in-fact (it being understood that
the Purchase Contract Agent shall not be liable for any covenant made by or on
behalf of a Holder), hereby covenant to the Collateral Agent that for so long as
the Collateral remains subject to the Pledge:

         (a) neither the Purchase Contract Agent nor such Holders will create or
purport to create or allow to subsist any mortgage, charge, lien, pledge or any
other security interest whatsoever over the Collateral or any part of it other
than pursuant to this Agreement; and

         (b) neither the Purchase Contract Agent nor such Holders will sell or
otherwise dispose (or attempt to dispose) of the Collateral or any part of it
except for the beneficial interest therein, subject to the Pledge hereunder,
transferred in connection with the Transfer of the Securities.

                                       22

<PAGE>

                                    ARTICLE 9
              THE COLLATERAL AGENT AND THE SECURITIES INTERMEDIARY

         It is hereby agreed as follows:

         SECTION 9.01. Appointment, Powers and Immunities. The Collateral Agent
and Securities Intermediary shall act as agent for the Company hereunder with
such powers as are specifically vested in the Collateral Agent and Securities
Intermediary by the terms of this Agreement, together with such other powers as
are reasonably incidental thereto. The Collateral Agent and Securities
Intermediary shall:

         (a) have no duties or responsibilities except those expressly set forth
in this Agreement and no implied covenants or obligations shall be inferred from
this Agreement against the Collateral Agent and Securities Intermediary, nor
shall the Collateral Agent and Securities Intermediary be bound by the
provisions of any agreement by any party hereto beyond the specific terms
hereof;

         (b) not be responsible for any recitals contained in this Agreement, or
in any certificate or other document referred to or provided for in, or received
by it under, this Agreement, the Securities or the Purchase Contract Agreement,
or for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement (other than as against the Collateral Agent and
Securities Intermediary), the Securities or the Purchase Contract Agreement or
any other document referred to or provided for herein or therein or for any
failure by the Company or any other Person (except the Collateral Agent and
Securities Intermediary) to perform any of its obligations hereunder or
thereunder or for the perfection, priority or, except as expressly required
hereby, maintenance of any security interest created hereunder;

         (c) not be required to initiate or conduct any litigation or collection
proceedings hereunder (except pursuant to directions furnished under Section
9.02 hereof, subject to Section 9.06 hereof);

         (d) not be responsible for any action taken or omitted to be taken by
it hereunder or under any other document or instrument referred to or provided
for herein or in connection herewith or therewith, except for its own negligence
or willful misconduct; and

         (e) not be required to advise any party as to selling or retaining, or
taking or refraining from taking any action with respect to, any securities or
other property deposited hereunder.

                                       23

<PAGE>

Subject to the foregoing, during the term of this Agreement, the Collateral
Agent shall take all reasonable action in connection with the safekeeping and
preservation of the Collateral hereunder.

         No provision of this Agreement shall require the Collateral Agent or
Securities Intermediary to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder. In no
event shall the Collateral Agent or Securities Intermediary be liable for any
amount in excess of the Value of the Collateral. Notwithstanding the foregoing,
each of the Collateral Agent and the Securities Intermediary in its individual
capacity hereby waives any right of setoff, bankers' lien, liens or perfection
rights as securities intermediary or any counterclaim with respect to any of the
Collateral.

         SECTION 9.02. Instructions of the Company. The Company shall have the
right, by one or more written instruments executed and delivered to the
Collateral Agent, to direct the time, method and place of conducting any
proceeding for the realization of any right or remedy available to the
Collateral Agent, or of exercising any power conferred on the Collateral Agent,
or to direct the taking or refraining from taking of any action authorized by
this Agreement; provided, however, that (i) such direction shall not conflict
with the provisions of any law or of this Agreement and (ii) the Collateral
Agent shall be adequately indemnified as provided herein. Nothing contained in
this Section 9.02 shall impair the right of the Collateral Agent in its
discretion to take any action or omit to take any action which it deems proper
and which is not inconsistent with such direction.

         SECTION 9.03. Reliance by Collateral Agent and Securities Intermediary.
Each of the Securities Intermediary and the Collateral Agent shall be entitled
to rely upon any certification, order, judgment, opinion, notice or other
written communication (including, without limitation, any thereof by e-mail or
similar electronic means, telecopy, telex or facsimile) believed by it to be
genuine and correct and to have been signed or sent by or on behalf of the
proper Person or Persons (without being required to determine the correctness of
any fact stated therein) and consult with and rely upon advice, opinions and
statements of legal counsel and other experts selected by the Collateral Agent
and the Securities Intermediary. As to any matters not expressly provided for by
this Agreement, the Collateral Agent and the Securities Intermediary shall in
all cases be fully protected in acting, or in refraining from acting, hereunder
in accordance with instructions given by the Company in accordance with this
Agreement.

         SECTION 9.04. Rights in Other Capacities. The Collateral Agent and the
Securities Intermediary and their affiliates may (without having to account
therefor to the Company) accept deposits from, lend money to, make their
investments in and generally engage in any kind of banking, trust or other
business with the Purchase

                                       24
<PAGE>

Contract Agent, any other Person interested herein and any Holder of Securities
(and any of their respective subsidiaries or affiliates) as if it were not
acting as the Collateral Agent or the Securities Intermediary, as the case may
be, and the Collateral Agent, the Securities Intermediary and their affiliates
may accept fees and other consideration from the Purchase Contract Agent and any
Holder of Securities without having to account for the same to the Company;
provided that each of the Securities Intermediary and the Collateral Agent
covenants and agrees with the Company that it shall not accept, receive or
permit there to be created in favor of itself and shall take no affirmative
action to permit there to be created in favor of any other Person, any security
interest, lien or other encumbrance of any kind in or upon the Collateral other
than the lien created by the Pledge.

         SECTION 9.05. Non-Reliance on Collateral Agent and Securities
Intermediary. Neither the Securities Intermediary nor the Collateral Agent shall
be required to keep itself informed as to the performance or observance by the
Purchase Contract Agent or any Holder of Securities of this Agreement, the
Purchase Contract Agreement, the Securities or any other document referred to or
provided for herein or therein or to inspect the properties or books of the
Purchase Contract Agent or any Holder of Securities. Neither the Collateral
Agent nor the Securities Intermediary shall have any duty or responsibility to
provide the Company with any credit or other information concerning the affairs,
financial condition or business of the Purchase Contract Agent or any Holder of
Securities (or any of their respective affiliates) that may come into the
possession of the Collateral Agent or the Securities Intermediary or any of
their respective affiliates.

         SECTION 9.06. Compensation and Indemnity. The Company agrees to:

         (a) pay the Collateral Agent and the Securities Intermediary from time
to time such compensation as shall be agreed in writing between the Company and
the Collateral Agent or the Securities Intermediary, as the case may be, for all
services rendered by them hereunder;

         (b) indemnify and hold harmless the Collateral Agent, the Securities
Intermediary and each of their respective directors, officers, agents and
employees (collectively, the "INDEMNITEES"), harmless from and against any and
all claims, liabilities, losses, damages, fines, penalties and expenses
(including reasonable fees and expenses of counsel) (collectively, "Losses" and
individually, a "LOSS") that may be imposed on, incurred by, or asserted
against, the Indemnitees or any of them for following any instructions or other
directions upon which either the Collateral Agent or the Securities Intermediary
is entitled to rely pursuant to the terms of this Agreement; and

                                       25

<PAGE>

         (c) in addition to and not in limitation of paragraph (b) immediately
above, indemnify and hold the Indemnitees and each of them harmless from and
against any and all Losses that may be imposed on, incurred by or asserted
against, the Indemnitees or any of them in connection with or arising out of the
Collateral Agent's or the Securities Intermediary's acceptance or performance of
its powers and duties under this Agreement, provided the Collateral Agent or the
Securities Intermediary has not acted with negligence or engaged in willful
misconduct or bad faith with respect to the specific Loss against which
indemnification is sought.

         SECTION 9.07. Failure to Act. In the event of any ambiguity in the
provisions of this Agreement or any dispute between or conflicting claims by or
among the parties hereto or any other Person with respect to any funds or
property deposited hereunder, then at its sole option, each of the Collateral
Agent and the Securities Intermediary shall be entitled, after prompt notice to
the Company and the Purchase Contract Agent, to refuse to comply with any and
all claims, demands or instructions with respect to such property or funds so
long as such dispute or conflict shall continue, and the Collateral Agent and
the Securities Intermediary shall not be or become liable in any way to any of
the parties hereto for its failure or refusal to comply with such conflicting
claims, demands or instructions. The Collateral Agent and the Securities
Intermediary shall be entitled to refuse to act until either:

         (a) such conflicting or adverse claims or demands shall have been
finally determined by a court of competent jurisdiction or settled by agreement
between the conflicting parties as evidenced in a writing satisfactory to the
Collateral Agent or the Securities Intermediary; or

         (b) the Collateral Agent or the Securities Intermediary shall have
received security or an indemnity satisfactory to it sufficient to save it
harmless from and against any and all loss, liability or reasonable
out-of-pocket expense which it may incur by reason of its acting.

The Collateral Agent and the Securities Intermediary may in addition elect to
commence an interpleader action or seek other judicial relief or orders as the
Collateral Agent or the Securities Intermediary may deem necessary.
Notwithstanding anything contained herein to the contrary, neither the
Collateral Agent nor the Securities Intermediary shall be required to take any
action that is in its opinion contrary to law or to the terms of this Agreement,
or which would in its opinion subject it or any of its officers, employees or
directors to liability.

                                       26

<PAGE>

         SECTION 9.08.  Resignation of Collateral Agent and Securities
Intermediary.

         (a) Subject to the appointment and acceptance of a successor Collateral
Agent as provided below:

                  (i) the Collateral Agent may resign at any time by giving
         notice thereof to the Company and the Purchase Contract Agent as
         attorney-in- fact for the Holders of Securities;

                  (ii) the Collateral Agent may be removed at any time by the
         Company; and

                  (iii) if the Collateral Agent fails to perform any of its
         material obligations hereunder in any material respect for a period of
         not less than 20 days after receiving written notice of such failure by
         the Purchase Contract Agent and such failure shall be continuing, the
         Collateral Agent may be removed by the Purchase Contract Agent, acting
         at the direction of the Holders of Securities.

The Purchase Contract Agent shall promptly notify the Company of any removal of
the Collateral Agent pursuant to clause (iii) of the immediately preceding
sentence. Upon any such resignation or removal, the Company shall have the right
to appoint a successor Collateral Agent. If no successor Collateral Agent shall
have been so appointed and shall have accepted such appointment within 30 days
after the retiring Collateral Agent's giving of notice of resignation or the
Company or the Purchase Contract Agent giving notice of such removal, then the
retiring Collateral Agent may petition any court of competent jurisdiction for
the appointment of a successor Collateral Agent. The Collateral Agent shall be a
bank or a national banking association which has an office (or an agency office)
in New York City with a combined capital and surplus of at least $50,000,000 and
shall not be the Purchase Contract Agent or any of its affiliates. Upon the
acceptance of any appointment as Collateral Agent hereunder by a successor
Collateral Agent, such successor Collateral Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the retiring
Collateral Agent, and the retiring Collateral Agent shall take all appropriate
action to transfer any money and property held by it hereunder (including the
Collateral) to such successor Collateral Agent. The retiring Collateral Agent
shall, upon such succession, be discharged from its duties and obligations as
Collateral Agent hereunder. After any retiring Collateral Agent's resignation
hereunder as Collateral Agent, the provisions of this Article 9 shall continue
in effect for its benefit in respect of any actions taken or omitted to be taken
by it while it was acting as the Collateral Agent.

         (b) Subject to the appointment and acceptance of a successor Securities
Intermediary as provided below:

                                       27

<PAGE>

                  (i) the Securities Intermediary may resign at any time by
         giving notice thereof to the Company and the Purchase Contract Agent as
         attorney-in-fact for the Holders of Securities;

                  (ii) the Securities Intermediary may be removed at any time by
         the Company; and

                  (iii) if the Securities Intermediary fails to perform any of
         its material obligations hereunder in any material respect for a period
         of not less than 20 days after receiving written notice of such failure
         by the Purchase Contract Agent and such failure shall be continuing,
         the Securities Intermediary may be removed by the Purchase Contract
         Agent.

The Purchase Contract Agent shall promptly notify the Company of any removal of
the Securities Intermediary pursuant to clause (iii) of the immediately
preceding sentence. Upon any such resignation or removal, the Company shall have
the right to appoint a successor Securities Intermediary. If no successor
Securities Intermediary shall have been so appointed and shall have accepted
such appointment within 30 days after the retiring Securities Intermediary's
giving of notice of resignation or the Company or the Purchase Contract Agent
giving notice of such removal, then the retiring Securities Intermediary may
petition any court of competent jurisdiction for the appointment of a successor
Securities Intermediary. The Securities Intermediary shall be a bank or a
national banking association which has an office (or an agency office) in New
York City with a combined capital and surplus of at least $50,000,000 and shall
not be the Purchase Contract Agent or any of its affiliates. Upon the acceptance
of any appointment as Securities Intermediary hereunder by a successor
Securities Intermediary, such successor Securities Intermediary shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Securities Intermediary, and the retiring Securities
Intermediary shall take all appropriate action to transfer any money and
property held by it hereunder (including the Collateral) to such successor
Securities Intermediary. The retiring Securities Intermediary shall, upon such
succession, be discharged from its duties and obligations as Securities
Intermediary hereunder. After any retiring Securities Intermediary's resignation
hereunder as Securities Intermediary, the provisions of this Article 9 shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as the Securities Intermediary.

         SECTION 9.09. Right to Appoint Agent or Advisor. The Collateral Agent
shall have the right to appoint agents or advisors in connection with any of its
duties hereunder, and the Collateral Agent shall not be liable for any action
taken or omitted by, or in reliance upon the advice of, such agents or advisors
selected

                                       28

<PAGE>

in good faith. The appointment of agents pursuant to this Section 9.09 shall be
subject to prior consent of the Company, which consent shall not be unreasonably
withheld.

         SECTION 9.10. Survival. The provisions of this Article 9 shall survive
termination of this Agreement and the resignation or removal of the Collateral
Agent or the Securities Intermediary.

         SECTION 9.11. Exculpation. Anything contained in this Agreement to the
contrary notwithstanding, in no event shall the Collateral Agent or the
Securities Intermediary or their officers, directors, employees or agents be
liable under this Agreement to any third party for indirect, special, punitive,
or consequential loss or damage of any kind whatsoever, including, but not
limited to, lost profits, whether or not the likelihood of such loss or damage
was known to the Collateral Agent or the Securities Intermediary, or any of
them.

                                   ARTICLE 10
                                    AMENDMENT

         SECTION 10.01. Amendment Without Consent of Holders. Without the
consent of any Holders, the Company, the Collateral Agent, the Securities
Intermediary and the Purchase Contract Agent, at any time and from time to time,
may amend this Agreement, in form satisfactory to the Company, the Collateral
Agent, the Securities Intermediary and the Purchase Contract Agent, to:

         (a) evidence the succession of another Person to the Company, and the
assumption by any such successor of the covenants of the Company;

         (b) evidence and provide for the acceptance of appointment hereunder by
a successor Collateral Agent, Securities Intermediary or Purchase Contract
Agent;

         (c) add to the covenants of the Company for the benefit of the Holders,
or surrender any right or power herein conferred upon the Company, provided such
covenants or such surrender do not adversely affect the validity, perfection or
priority of the Pledge created hereunder; or

         (d) cure any ambiguity (or formal defect), correct or supplement any
provisions herein which may be inconsistent with any other such provisions
herein, or make any other provisions with respect to such matters or questions

                                       29

<PAGE>

arising under this Agreement, provided such action shall not adversely affect
the interests of the Holders.

         SECTION 10.02. Amendment with Consent of Holders. With the consent of
the Holders of not less than a majority of the Purchase Contracts at the time
outstanding, by Act of such Holders delivered to the Company, the Purchase
Contract Agent, the Securities Intermediary or the Collateral Agent, as the case
may be, the Company, when duly authorized, the Purchase Contract Agent, the
Securities Intermediary and the Collateral Agent may amend this Agreement for
the purpose of modifying in any manner the provisions of this Agreement or the
rights of the Holders in respect of the Securities; provided, however, that no
such supplemental agreement shall, without the unanimous consent of the Holders
of each Outstanding Security adversely affected thereby:

         (a) Change the amount or type of Collateral underlying a Security
(except for the rights of holders of Stock Purchase Units to substitute the
Treasury Securities for the Pledged [Subordinated] Notes, as the case may be, or
the rights of Holders of Treasury Stock Purchase Units to substitute
[Subordinated] Notes, as applicable, for the Pledged Treasury Securities),
impair the right of the Holder of any Security to receive distributions on the
underlying Collateral or otherwise adversely affect the Holder's rights in or to
such Collateral; or

         (b) otherwise effect any action that would require the consent of the
Holder of each Outstanding Security affected thereby pursuant to the Purchase
Contract Agreement if such action were effected by an agreement supplemental
thereto; or

         (c) reduce the percentage of Purchase Contracts the consent of whose
Holders is required for any such amendment;

provided that if any amendment or proposal referred to above would adversely
affect only the Stock Purchase Units or only the Treasury Stock Purchase Units,
then only the affected class of Holders as of the record date for the Holders
entitled to vote thereon will be entitled to vote on such amendment or proposal,
and such amendment or proposal shall not be effective except with the consent of
Holders of not less than a majority of such class; provided, further, that the
unanimous consent of the Holders of each outstanding Purchase Contract of such
class affected thereby shall be required to approve any amendment or proposal
specified in clauses (a) through (c) above.

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

                                       30

<PAGE>

         SECTION 10.03. Execution of Amendments. In executing any amendment
permitted by this Section, the Collateral Agent, the Securities Intermediary and
the Purchase Contract Agent shall be entitled to receive and (subject to Section
7.01 of the Purchase Contract Agreement with respect to the Purchase Contract
Agent) shall be fully protected in relying upon, an Opinion of Counsel stating
that the execution of such amendment is authorized or permitted by this
Agreement and that all conditions precedent, if any, to the execution and
delivery of such amendment have been satisfied.

         SECTION 10.04. Effect of Amendments. Upon the execution of any
amendment under this Section, this Agreement shall be modified in accordance
therewith, and such amendment shall form a part of this Agreement for all
purposes; and every Holder of Certificates theretofore or thereafter
authenticated, executed on behalf of the Holders and delivered under the
Purchase Contract Agreement shall be bound thereby.

         SECTION 10.05. Reference of Amendments. Certificates authenticated,
executed on behalf of the Holders and delivered after the execution of any
amendment pursuant to this Section may, and shall if required by the Collateral
Agent or the Purchase Contract Agent, bear a notation in form approved by the
Purchase Contract Agent and the Collateral Agent as to any matter provided for
in such amendment. If the Company shall so determine, new Security Certificates
so modified as to conform, in the opinion of the Collateral Agent, the Purchase
Contract Agent and the Company, to any such amendment may be prepared and
executed by the Company and authenticated, executed on behalf of the Holders and
delivered by the Purchase Contract Agent in accordance with the Purchase
Contract Agreement in exchange for Outstanding Security Certificates.

                                   ARTICLE 11
                                 MISCELLANEOUS

         SECTION 11.01. No Waiver. No failure on the part of the Collateral
Agent, the Securities Intermediary or any of their respective agents to
exercise, and no course of dealing with respect to, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise by the Collateral Agent, the Securities
Intermediary or any of their respective agents of any right, power or remedy
hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. The remedies herein are cumulative and are not
exclusive of any remedies provided by law.

                                       31

<PAGE>

         SECTION 11.02. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. The Company,
the Collateral Agent, the Securities Intermediary and the Holders from time to
time of the Securities, acting through the Purchase Contract Agent as their
attorney-in-fact, hereby submit to the nonexclusive jurisdiction of the United
States District Court for the Southern District of New York and of any New York
state court sitting in New York City for the purposes of all legal proceedings
arising out of or relating to this Agreement or the transactions contemplated
hereby. The Company, the Collateral Agent, the Securities Intermediary and the
Holders from time to time of the Securities, acting through the Purchase
Contract Agent as their attorney-in-fact, irrevocably waive, to the fullest
extent permitted by applicable law, any objection which they may now or
hereafter have to the laying of the venue of any such proceeding brought in such
a court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum.

         SECTION 11.03. Notices. All notices, requests, consents and other
communications provided for herein (including, without limitation, any
modifications of, or waivers or consents under, this Agreement) shall be given
or made in writing (including, without limitation, by telecopy) delivered to the
intended recipient at the "ADDRESS FOR NOTICES" specified below its name on the
signature pages hereof or, as to any party, at such other address as shall be
designated by such party in a notice to the other parties. Except as otherwise
provided in this Agreement, all such communications shall be deemed to have been
duly given when transmitted by telecopier or personally delivered or, in the
case of a mailed notice, upon receipt, in each case given or addressed as
aforesaid.

         SECTION 11.04. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the respective successors and assigns of the
Company, the Collateral Agent, the Securities Intermediary and the Purchase
Contract Agent, and the Holders from time to time of the Securities, by their
acceptance of the same, shall be deemed to have agreed to be bound by the
provisions hereof and to have ratified the agreements of, and the grant of the
Pledge hereunder by, the Purchase Contract Agent.

         SECTION 11.05. Counterparts. This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument, and any of the parties hereto may execute this Agreement by
signing any such counterpart.

         SECTION 11.06. Severability. If any provision hereof is invalid and
unenforceable in any jurisdiction, then, to the fullest extent permitted by law,
(i) the other provisions hereof shall remain in full force and effect in such
jurisdiction

                                       32

<PAGE>

and shall be liberally construed in order to carry out the intentions of the
parties hereto as nearly as may be possible and (ii) the invalidity or
unenforceability of any provision hereof in any jurisdiction shall not affect
the validity or enforceability of such provision in any other jurisdiction.

         SECTION 11.07. Expenses, Etc.. The Company agrees to reimburse the
Collateral Agent and the Securities Intermediary for:

         (a) all reasonable costs and expenses of the Collateral Agent and the
Securities Intermediary (including, without limitation, the reasonable fees and
expenses of counsel to the Collateral Agent and the Securities Intermediary), in
connection with (i) the negotiation, preparation, execution and delivery or
performance of this Agreement and (ii) any modification, supplement or waiver of
any of the terms of this Agreement;

         (b) all reasonable costs and expenses of the Collateral Agent and the
Securities Intermediary (including, without limitation, reasonable fees and
expenses of counsel) in connection with (i) any enforcement or proceedings
resulting or incurred in connection with causing any Holder of Securities to
satisfy its obligations under the Purchase Contracts forming a part of the
Securities and (ii) the enforcement of this Section 11.07;

         (c) all transfer, stamp, documentary or other similar taxes,
assessments or charges levied by any governmental or revenue authority in
respect of this Agreement or any other document referred to herein and all
costs, expenses, taxes, assessments and other charges incurred in connection
with any filing, registration, recording or perfection of any security interest
contemplated hereby;

         (d) all fees and expenses of any agent or advisor appointed by the
Collateral Agent and consented to by the Company under Sections 9.03 and 9.09 of
this Agreement; and

         (e) any other out-of-pocket costs and expenses reasonably incurred by
the Collateral Agent and the Securities Intermediary in connection with the
performance of their duties hereunder.

         SECTION 11.08. Security Interest Absolute. All rights of the Collateral
Agent and security interests hereunder, and all obligations of the Holders from
time to time hereunder, shall be absolute and unconditional irrespective of:

         (a) any lack of validity or enforceability of any provision of the
Purchase Contracts or the Securities or any other agreement or instrument
relating thereto;

                                       33

<PAGE>

         (b) any change in the time, manner or place of payment of, or any other
term of, or any increase in the amount of, all or any of the obligations of
Holders of the Securities under the related Purchase Contracts, or any other
amendment or waiver of any term of, or any consent to any departure from any
requirement of, the Purchase Contract Agreement or any Purchase Contract or any
other agreement or instrument relating thereto; or

         (c) any other circumstance which might otherwise constitute a defense
available to, or discharge of, a borrower, a guarantor or a pledger.

         SECTION 11.09. Notice of Tax Event, Tax Event Redemption and
Termination Event. Upon the occurrence of a Tax Event, a Tax Event Redemption or
a Termination Event, the Company shall deliver written notice to the Collateral
Agent and the Securities Intermediary. Upon the written request of the
Collateral Agent or the Securities Intermediary, the Company shall inform such
party whether or not a Tax Event, a Tax Event Redemption or a Termination Event
has occurred.

                       [SIGNATURES ON THE FOLLOWING PAGE]

                                       34

<PAGE>

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

THE WILLIAMS COMPANIES, INC.                [                           ] as
                                            Purchase Contract Agent and
                                            as attorney-in-fact of the Holders
                                            from time to time of the Securities

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

Address for Notices:                        Address for Notices:

The Williams Companies, inc.                      [              ]
                                                  [              ]
                                                  [              ]
Attention:                                  Attention:
Telecopy:                                   Telecopy:
With a copy to:
[                      ]
[                      ]
[                      ]
Attention:
Telecopy:

[                      ]                    [                      ]
as Collateral Agent                         as Securities Intermediary

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

Address for Notices:                        Address for Notices:

[                      ]                    [                    ]
[                      ]                    [                    ]
[                      ]                    [                    ]
[                      ]                    [                    ]
[                      ]                    [                    ]
Attention:                                  Attention:
Telecopy:                                   Telecopy:

                                       35

<PAGE>

                                                                       EXHIBIT A

                                   INSTRUCTION
                          FROM PURCHASE CONTRACT AGENT
                               TO COLLATERAL AGENT
                (Establishment of Treasury Stock Purchase Units)

[                    ]
[                    ]
[                    ]
[                    ]
[                    ]
Attention:
Telecopy:

      Re:         Stock Purchase Units of The Williams Companies, Inc.
                  (the "COMPANY")

                  The securities account of [                             ], as
                  Collateral Agent, maintained by the Securities Intermediary
                  and designated "[                    ], as Collateral Agent of
                  The Williams Companies, Inc., as pledgee of [               ],
                  as the Purchase Contract Agent on behalf of and as
                  attorney-in- fact for the Holders" (the "COLLATERAL ACCOUNT")

         Please refer to the Pledge Agreement, dated as of __________, 2002 (the
"PLEDGE AGREEMENT"), among the Company, you, as Collateral Agent, [
                ], as Securities Intermediary, and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the holders of Stock Purchase Units
from time to time. Capitalized terms used herein but not defined shall have the
meaning set forth in the Pledge Agreement.

         We hereby notify you in accordance with Section 5.02 of the Pledge
Agreement that the holder of securities named below (the "HOLDER") has elected
to substitute $__________ Value of Treasury Securities or security entitlements
thereto in exchange for [an equal Value of [Pledged [Subordinated] Notes]
relating to _________ Stock Purchase Units] and has delivered to the undersigned
a notice stating that the Holder has Transferred such Treasury Securities or
security entitlements thereto to the Securities Intermediary, for credit to the
Collateral Account.

                                       A-1

<PAGE>

         We hereby request that you instruct the Securities Intermediary, upon
confirmation that such Treasury Securities or security entitlements thereto have
been credited to the Collateral Account, to release to the undersigned [an equal
Value of [Pledged [Subordinated] Notes]] in accordance with Section 5.02 of the
Pledge Agreement. We also hereby confirm that no Tax Event Redemption has
occurred.

                                           [                                  ],
Date:                                      as Purchase Contract Agent and as
                                           attorney-in-fact of the Holders from
                                           time to time of the Securities

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

                                       A-2

<PAGE>

Please print name and address of Holder electing to substitute Treasury
Securities or security entitlements thereto for the [Pledged [Subordinated]
Notes]:

------------------------------                  -------------------------------
             Name                               Social Security or other
                                                Taxpayer Identification Number,
                                                if any

------------------------------
           Address

------------------------------

------------------------------

                                       A-3

<PAGE>

                                                                       EXHIBIT B

                                   INSTRUCTION
                              FROM COLLATERAL AGENT
                           TO SECURITIES INTERMEDIARY
                (Establishment of Treasury Stock Purchase Units)

[                        ]
[                        ]
[                        ]
[                        ]
[                        ]
[                        ]
Attention:
Telecopy:

Re:      Stock Purchase Units of The Williams Companies, Inc. (the
         "COMPANY")

         The securities account of [                                       ], as
         Collateral Agent, maintained by the Securities Intermediary and
         designated "[                    ], as Collateral Agent of The Williams
         Companies, Inc., as pledgee of [                              ], as the
         Purchase Contract Agent on behalf of and as attorney-in-fact for the
         Holders" (the "COLLATERAL ACCOUNT")

         Please refer to the Pledge Agreement, dated as of _________________,
2002 (the "PLEDGE AGREEMENT"), among the Company, you, as Securities
Intermediary, [                            ], as Purchase Contract Agent and as
attorney-in-fact for the holders of Stock Purchase Units from time to time, and
the undersigned, as Collateral Agent. Capitalized terms used herein but not
defined shall have the meanings set forth in the Pledge Agreement.

         When you have confirmed that $__________ Value of Treasury Securities
or security entitlements thereto has been credited to the Collateral Account by
or for the benefit of _________, as Holder of Stock Purchase Units (the
"HOLDER"), you are hereby instructed to release from the Collateral Account [an
equal Value of [[Subordinated] Notes or security entitlements thereto]] relating
to _____ Stock Purchase Units of the Holder] by Transfer to the Purchase
Contract Agent.

                                               [                            ],
                                               as Collateral Agent
Dated:
       ----------------
                                               By:
                                                   -----------------------------
                                                    Name:
                                                    Title:

                                      B-1
<PAGE>

Please print name and address of Holder:

--------------------------------              ----------------------------------
              Name                            Social Security or other
                                              Taxpayer Identification Number,
                                              if any

---------------------------------
           Address

---------------------------------

---------------------------------

                                       B-2

<PAGE>

                                                                       EXHIBIT C

                                   INSTRUCTION
                          FROM PURCHASE CONTRACT AGENT
                               TO COLLATERAL AGENT
                   (Reestablishment of Stock Purchase Units )

[                      ]
[                      ]
[                      ]
[                      ]
[                      ]
[                      ]
Attention:
Telecopy:

         Re:      ____________ Stock Purchase Units of The Williams Companies,
                  Inc. (the "COMPANY")

         Please refer to the Pledge Agreement dated as of __________, 2002 (the
"PLEDGE AGREEMENT"), among the Company, you, as Collateral Agent, [
                                  ], as Securities Intermediary, and the
undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders
of Stock Purchase Units from time to time. Capitalized terms used herein but not
defined shall have the meaning set forth in the Pledge Agreement.

         We hereby notify you in accordance with Section 5.03(a) of the Pledge
Agreement that the holder of securities listed below (the "HOLDER") has elected
to substitute [$ Value of [Subordinated] Notes or security entitlements
thereto]] in exchange for $__________ Value of Pledged Treasury Securities and
has delivered to the undersigned a notice stating that the holder has
Transferred such [[Subordinated] Notes or security entitlements thereto] to the
Securities Intermediary, for credit to the Collateral Account.

         We hereby request that you instruct the Securities Intermediary, upon
confirmation that such [[Subordinated] Notes or security entitlements thereto]
have been credited to the Collateral Account, to release to the undersigned
$__________ Value of Treasury Securities or security entitlements thereto
related to _____ Stock Purchase Units of such Holder in accordance with Section
5.03(a) of the Pledge Agreement. We also hereby confirm that no Tax Event
Redemption has occurred.

                                               [                             ],
                                               as Purchase Contract Agent

Dated:                                         By:
      ----------------                             -----------------------------
                                                     Name:
                                                     Title:

                                      C-1
<PAGE>

Please print name and address of Holder electing to substitute [Pledged
[Subordinated] Notes or security entitlements thereto] for Pledged Treasury
Securities:

---------------------------------                -------------------------------
             Name                                Social Security or other
                                                 Taxpayer Identification Number,
                                                 if any

---------------------------------
            Address

---------------------------------

---------------------------------

                                       C-2

<PAGE>

                                                                       EXHIBIT D

                                   INSTRUCTION
                              FROM COLLATERAL AGENT
                           TO SECURITIES INTERMEDIARY
                    (Reestablishment of Stock Purchase Units)

[                          ]
[                          ]
[                          ]
[                          ]
[                          ]
[                          ]
Attention:
Telecopy:

         Re:      ___________ Stock Purchase Units of The Williams Companies,
                  Inc. (the "COMPANY")

                  The securities account of [                              ], as
                  Collateral Agent, maintained by the Securities Intermediary
                  and designated "[                                       ], as
                  Collateral Agent of The Williams Companies, Inc., as pledgee
                  of [                               ], as the Purchase Contract
                  Agent on behalf of and as attorney-in-fact for the Holders"
                  (the "COLLATERAL ACCOUNT")

         Please refer to the Pledge Agreement dated as of _________________,
2002 (the "PLEDGE AGREEMENT"), among the Company, you, as Securities
Intermediary, [                             ], as Purchase Contract Agent and as
attorney-in-fact for the holders of Stock Purchase Units from time to time, and
the undersigned, as Collateral Agent. Capitalized terms used herein but no
defined shall have the meaning set forth in the Pledge Agreement.

         When you have confirmed that $ __________ Value of [[Subordinated]
Notes or security entitlements thereto] has been credited to the Collateral
Account by or for the benefit of ________________, as Holder of Stock Purchase
Units (the "HOLDER"), you are hereby instructed to release from the Collateral
Account $

                                       D-1

<PAGE>

________________ Value of Treasury Securities or security entitlements thereto
by Transfer to the Purchase Contract Agent.

                                            [                             ],
                                            as Collateral Agent

Dated:                                      By:
       ------------------                       --------------------------------
                                                           Name:
                                                           Title:

-------------------------------             ------------------------------------
             Name                           Social Security or other
                                            Taxpayer Identification Number,
                                            if any

-------------------------------
           Address

-------------------------------

-------------------------------

                                       D-2

<PAGE>

                                                                       EXHIBIT E

                    NOTICE OF CASH SETTLEMENT FROM SECURITIES
                     INTERMEDIARY TO PURCHASE CONTRACT AGENT
                            (Cash Settlement Amounts)

[                       ]
[                       ]
[                       ]
Attention:
Telecopy:

         Re:      __________  Stock Purchase Units of The Williams Companies,
                  Inc. (the "COMPANY")

         Please refer to the Pledge Agreement dated as of _______________, 2002
(the "PLEDGE AGREEMENT"), by and among you, the Company, [
              ], as Collateral Agent and the undersigned, as Securities
Intermediary. Unless otherwise defined herein, terms defined in the Pledge
Agreement are used herein as defined therein.

         In accordance with Section 5.05(d) of the Pledge Agreement, we hereby
notify you that as of 11:00 a.m. (New York City time) on the fifth Business Day
immediately preceding ___________, we have received (i) $ _______________ in
immediately available funds paid in an aggregate amount equal to the Purchase
Price to the Company on the Purchase Contract Settlement Date with respect to
________________ Stock Purchase Units and (ii) $ ___________ in immediately
available funds paid in an aggregate amount equal to the Purchase Price to the
Company on the Purchase Contract Settlement Date with respect to ______ Treasury
Stock Purchase Units.

                                           [                             ],
                                           as Securities Intermediary,

Dated:                                      By:
       ---------------------                    -------------------------------
                                                  Name:
                                                  Title:

                                       E-1<PAGE>
                                                                    EXHIBIT 4.12

                          THE WILLIAMS COMPANIES, INC.
                                      and

                             _____________________,

                                as Warrant Agent

                          ----------------------------

                               WARRANT AGREEMENT

                          Dated as of ________________

                          ----------------------------

                          Warrants to Purchase _______

                          ----------------------------

<PAGE>

                                TABLE OF CONTENTS

                                   ----------

<Table>
<Caption>

                                                                                             PAGE
                                                                                             ----
<S>                                                                                          <C>
                                            ARTICLE 1
                   ISSUANCE OF WARRANTS AND EXECUTION AND DELIVERY OF WARRANT
                                          CERTIFICATES

SECTION 1.01.  Issuance of Warrants.............................................................2
SECTION 1.02.  Execution and Delivery of Warrant Certificates...................................2
SECTION 1.03.  Issuance of Warrant Certificates.................................................3

                                            ARTICLE 2
                        WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS

SECTION 2.01.  Warrant Price....................................................................4
SECTION 2.02.  Duration of Warrants.............................................................5
SECTION 2.03.  Exercise of Warrants.............................................................5

                                            ARTICLE 3
                    OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT

SECTION 3.01.  No Rights as Warrant Securityholder Conferred by
         Warrant or Warrant Certificates........................................................7
SECTION 3.02.  Lost, Mutilated, Stolen, or Destroyed Warrant Certificates.......................7
SECTION 3.03.  Enforcement of Rights............................................................7
SECTION 3.04.  Merger, Consolidation, Conveyance or Transfer....................................8

                                            ARTICLE 4
                                      EXCHANGE AND TRANSFER

SECTION 4.01.  Exchange and Transfer............................................................8
SECTION 4.02.  Treatment of Holders of Warrant Certificates.....................................9
SECTION 4.03.  Cancellation of Warrant Certificates............................................10

                                            ARTICLE 5
                                  CONCERNING THE WARRANT AGENT

SECTION 5.01.  Warrant Agent...................................................................10
SECTION 5.02.  Conditions of Warrant Agent's Obligations.......................................11
SECTION 5.03.  Resignation and Appointment of Successor........................................12
</Table>

<PAGE>

<Table>
<Caption>

                                                                                             PAGE
<S>                                                                                          <C>
                                            ARTICLE 6
                                          MISCELLANEOUS

SECTION 6.01.  Amendment.......................................................................14
SECTION 6.02.  Notices and Demands to the Company and Warrant Agent............................14
SECTION 6.03.  Addresses.......................................................................15
SECTION 6.04.  Applicable Law..................................................................15
SECTION 6.05.  Delivery of Prospectus..........................................................15
SECTION 6.06.  Obtaining of Governmental Approval..............................................15
SECTION 6.07.  Persons Having Rights under Warrant Agreement...................................15
SECTION 6.08.  Headings........................................................................15
SECTION 6.09.  Counterparts....................................................................16
SECTION 6.10.  Inspection of Agreement.........................................................16
SECTION 6.11.  Notices to Holders of Warrants..................................................16

TESTIMONIUM......................................................................................
SIGNATURES.......................................................................................

EXHIBIT A - Form of Warrant Certificate
</Table>

                                       ii

<PAGE>

                              WARRANT AGREEMENT(1)

         THIS AGREEMENT dated as of          between THE WILLIAMS
COMPANIES, INC., a corporation duly organized and existing under the laws of
the State of Delaware (the "Company"), and                , a [bank] [trust
company] duly incorporated and existing under the laws of            , as
Warrant Agent (the "Warrant Agent"),

         Bracketed language here and throughout this Agreement should be
inserted as follows:

         1. If Warrants are immediately detachable from the Offered Securities;
and

         2. If Warrants are detachable from the Offered Securities only after
the Detachable Date.

                                   WITNESSETH:

         [WHEREAS, the Company has entered into an Indenture dated as of
_____________ (the "Senior Indenture") between the Company and ______________,
as Trustee (the "Senior Indenture Trustee"), and an Indenture dated as of
____________ (the "Subordinated Indenture") between the Company and
_____________, as Trustee (the "Subordinated Indenture Trustee") (together, the
"Trustees" or "Trustee" and "Indentures" or "Indenture"), providing for the
issuance from time to time of its unsecured debt securities to be issued in one
or more series as provided in the Indenture; and]

         WHEREAS, the Company proposes to sell [title of such securities being
offered] (the "Offered Securities") with one or more warrants (the "Warrants")
representing the right to purchase [title of such securities purchasable through
exercise of Warrants] (the "Warrant Securities"), the Warrants to be evidenced
by Warrant certificates issued pursuant to this Agreement (the "Warrant
Certificates"); and

         WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company in connection with the issuance, transfer, exchange, exercise and
replacement of the Warrant Certificates, and in this Agreement wishes to set
forth, among other things, the form and provisions of the Warrant Certificates
and the

--------

        (1) Complete or modify the provisions of this form as appropriate to
reflect the terms of the Warrants and Warrant Securities. Monetary amounts may
be in U.S. dollars in a foreign currency.

<PAGE>

terms and conditions on which they may be issued, transferred, exchanged,
exercised and replaced;

         NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the parties hereto agree as follows:

                                    ARTICLE 1
           ISSUANCE OF WARRANTS AND EXECUTION AND DELIVERY OF WARRANT
                                  CERTIFICATES

         SECTION 1.01. Issuance of Warrants. Issuance of Warrants. The Warrants
shall be evidenced by one or more Warrant Certificates. Each Warrant evidenced
thereby shall represent the right, subject to the provisions contained herein
and therein, to purchase [_____ shares of the Warrant Securities] [ aggregate
principal amount of Warrant Securities ] and shall be initially issued in
connection with the issuance of the Offered Securities [1: and shall be
separately transferable immediately thereafter] [2: but shall not be separately
transferable until on and after , (the "Detachable Date")]. The Warrants shall
be initially issued [in units] with the Offered Securities, and each Warrant
[included in such a unit] shall evidence the right, subject to the provisions
contained herein and in the Warrant Certificates, to purchase [_____ shares of
the Warrant Securities] [ aggregate principal amount of Warrant Securities]
[included in such a unit].

         SECTION 1.02. Execution and Delivery of Warrant Certificates. Each
Warrant, whenever issued, shall be evidenced by a Warrant Certificate in
registered form, substantially in the form set forth in Exhibit A hereto, shall
be dated and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved
thereon as the officers of the Company executing the same may approve (execution
thereof to be conclusive evidence of such approval) and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any
law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any stock exchange on which the Warrants may be listed, or to
conform to usage. The Warrant Certificates shall be signed on behalf of the
Company by its chairman or vice chairman of the Board of Directors, the
president, any managing director or the treasurer of the Company, in each case
under its corporate seal, which may but need not be, attested by its Secretary
or one of its Assistant Secretaries. Such signatures may be manual or facsimile
signatures of such authorized officers and may be imprinted or otherwise
reproduced on the Warrant Certificates. The corporate seal of the Company may be
in the form of a facsimile thereof and may be impressed, affixed, imprinted or
otherwise reproduced on the Warrant Certificates.

                                        2

<PAGE>

         No Warrant Certificate shall be valid for any purpose, and no Warrant
evidenced thereby shall be exercisable, until such Warrant Certificate has been
countersigned by the Warrant Agent by manual signature. Such signature by the
Warrant Agent upon any Warrant Certificate executed by the Company shall be
conclusive evidence, and the only evidence, that the Warrant Certificate so
countersigned has been duly issued hereunder.

         In case any officer of the Company who shall have signed any of the
Warrant Certificates either manually or by facsimile signature shall cease to be
such officer before the Warrant Certificates so signed shall have been
countersigned and delivered by the Warrant Agent as provided herein, such
Warrant Certificates may be countersigned and delivered notwithstanding that the
person who signed such Warrant Certificates ceased to be such officer of the
Company; and any Warrant Certificate may be signed on behalf of the Company by
such persons as, at the actual date of the execution of such Warrant
Certificate, shall be the proper officers of the Company, although at the date
of the execution of this Agreement any such person was not such officer.

         The term "Holder", when used with respect to any Warrant Certificate,
shall mean any person in whose name at the time such Warrant Certificate shall
be registered upon the books to be maintained by the Warrant Agent for that
purpose [2: or, prior to the Detachable Date, any person in whose name at the
time the Offered Security to which such Warrant Certificate is attached is
registered upon the register of the Offered Securities. Prior to the Detachable
Date, the Company will, or will cause the registrar of the Offered Securities
to, make available at all times to the Warrant Agent such information as to
holders of the Offered Securities with Warrants as may be necessary to keep the
Warrant Agent's records up to date.]

         SECTION 1.03. Issuance of Warrant Certificates. Warrant Certificates
evidencing the right to purchase [_____ shares of the Warrant Securities] [an
aggregate principal amount not exceeding aggregate principal amount of Warrant
Securities] (except as provided in Sections 2.03, 3.02 and 4.01) may be executed
by the Company and delivered to the Warrant Agent upon the execution of this
Warrant Agreement or from time to time thereafter. The Warrant Agent shall, upon
receipt of Warrant Certificates duly executed on behalf of the Company,
countersign Warrant Certificates evidencing ___________ Warrants representing
the right to purchase up to [_____shares of the Warrant Securities] [
          aggregate principal amount of Warrant Securities] and shall deliver
such Warrant Certificates to or upon the order of the Company. Subsequent to
such original issuance of the Warrant Certificates, the Warrant Agent shall
countersign a Warrant Certificate only if the Warrant Certificate is issued in
exchange or substitution for one or more previously countersigned Warrant
Certificates or in

                                        3

<PAGE>

connection with their transfer as hereinafter provided or as provided in the
antepenultimate paragraph of Section 2.03.

         Pending the preparation of definitive Warrant Certificates evidencing
Warrants, the Company may execute and the Warrant Agent shall countersign and
deliver temporary Warrant Certificates evidencing such Warrants (printed,
lithographed, typewritten or otherwise produced, in each case in form
satisfactory to the Warrant Agent). Such temporary Warrant Certificates shall be
issuable substantially in the form of the definitive Warrant Certificates but
with such omissions, insertions and variations as may be appropriate for
temporary Warrant Certificates, all as may be determined by the Company with the
concurrence of the Warrant Agent. Such temporary Warrant Certificates may
contain such reference to any provisions of this Warrant Agreement as may be
appropriate. Every such temporary Warrant Certificate shall be executed by the
Company and shall be countersigned by the Warrant Agent upon the same conditions
and in substantially the same manner, and with like effect, as the definitive
Warrant Certificates. Without unreasonable delay, the Company shall execute and
shall furnish definitive Warrant Certificates and thereupon such temporary
Warrant Certificates may be surrendered in exchange therefor without charge
pursuant to and subject to the provisions of Section 4.01, and the Warrant Agent
shall countersign and deliver in exchange for such temporary Warrant
Certificates definitive Warrant Certificates of authorized denominations
evidencing a like aggregate number of Warrants evidenced by such temporary
Warrant Certificates. Until so exchanged, such temporary Warrant Certificates
shall be entitled to the same benefits under this Warrant Agreement as
definitive Warrant Certificates.

                                    ARTICLE 2
                WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS

         SECTION 2.01. Warrant Price.  On          ,      the exercise price of
each Warrant will be        .  During the period from        ,     through and
including , , the exercise price of each Warrant will be [plus [accrued
amortization of the original issue discount] [accrued interest] from , .] On ,
the exercise price of each Warrant will be . During the period from , through
and including , , the exercise price of each Warrant will be [plus [accrued
amortization of the original issue discount] [accrued interest] from , .] [In
each case, the original issue discount will be amortized at a % annual rate,
computed on an annual basis using the "interest" method and using a 360-day year
consisting of twelve 30-day months]. Such exercise price of Warrant Securities
is referred to in this Agreement as the "Warrant Price". [The original issue
discount for each principal amount of Warrant Securities is ].

                                        4

<PAGE>

         SECTION 2.02.  Duration of Warrants.  Subject to Section 4.03(b), each
Warrant may be exercised [in whole but not in part] [in whole or in part] [at
any time, as specified herein, on or after [the date thereof] [       ,    ] and
at or before [time, location] on           ,        (each day during such period
may hereinafter be referred to as an "Exercise Date")] [on [list of specific
dates] (each, an "Exercise Date")], or such later date as the Company may
designate by notice to the Warrant Agent and the Holders of Warrant Certificates
[in registered form and to the beneficial owners of the Global Warrant
Certificate] (the "Expiration Date"). Each Warrant not exercised at or before
[time, location] on the Expiration Date shall become void, and all rights of the
Holder [and any beneficial owners] of the Warrant Certificate evidencing such
Warrant under this Agreement shall cease.

         SECTION 2.03. Exercise of Warrants. During the period specified in
Section 2.02, any whole number of Warrants may be exercised by providing certain
information as set forth on the reverse side of the Warrant Certificates
evidencing such Warrants and by paying in full [in lawful money of the United
States of America] [in applicable currency] [in cash] [by certified check or
official bank check or by bank wire transfer, in each case,] [by bank wire
transfer] [in immediately available funds,] the Warrant Price for each Warrant
exercised [(plus accrued interest, if any, on the Warrant Securities to be
issued upon exercise of such Warrant from and including the Interest Payment
Date (as defined in the Indenture), if any, in respect of such Warrant
Securities immediately preceding the Exercise Date to and including the Exercise
Date (unless the Exercise Date is after the Regular Record Date (as defined in
the Indenture), if any, for such Interest Payment Date, but on or before the
immediately succeeding Interest Payment Date for such Warrant Securities, in
which event no such accrued interest shall be payable in respect of Warrant
Securities to be issued in registered form))] to the Warrant Agent at its
corporate trust office at [address] [or at    ], provided that such exercise is
subject to receipt within five business days of such [payment] [wire transfer]
by the Warrant Agent of the Warrant Certificate evidencing each Warrant
exercised with the form of election to purchase Warrant Securities set forth on
the reverse side of the Warrant Certificate properly completed and duly
executed. [Cashless Exercise Option]

         The date on which payment in full of the Warrant Price (plus any such
accrued interest) is received by the Warrant Agent shall, subject to receipt of
the Warrant Certificate as aforesaid, be deemed to be the date on which the
Warrant is exercised. The Warrant Agent shall deposit all funds received by it
in payment for the exercise of Warrants in an account of the Company maintained
with it (or in such other account as may be designated by the Company) and shall
advise the Company, by telephone or by facsimile transmission or other form of
electronic communication available to both parties, at the end of each day on
which a payment for the exercise of Warrants is received of the amount so
deposited to its

                                        5

<PAGE>

account. The Warrant Agent shall promptly confirm such advice to the Company in
writing.

         If a day on which Warrants may be exercised in the city in which such
Warrants are to be exercised shall be a Saturday or Sunday or a day on which
banking institutions in such city are authorized or required to be closed, then,
notwithstanding any other provision of this Agreement or the Warrant Certificate
evidencing such Warrants, but subject to the limitation that no Warrant may be
exercised after the Expiration Date, the Warrants shall be exercisable on the
next succeeding day which in such city is not a Saturday or Sunday or a day on
which banking institutions in such city are authorized or required to be closed.

         The Warrant Agent shall, from time to time, as promptly as practicable,
advise the Company and the Trustee in writing of (i) the number of Warrants
exercised, (ii) the instructions of each Holder of the Warrant Certificates
evidencing such Warrants with respect to delivery of the Warrant Securities to
be issued upon such exercise, (iii) delivery of any Warrant Certificates
evidencing the balance, if any, of the Warrants remaining after such exercise,
and (iv) such other information as the Company or the Trustee shall reasonably
require.

         As soon as practicable after the exercise of any Warrant, but subject
to receipt by the Warrant Agent of the Warrant Certificate evidencing such
Warrant as provided in this Section, the Company shall issue[, pursuant to the
Indenture, in authorized denominations to or upon the order of the Holder of the
Warrant Certificate evidencing each Warrant,] the Warrant Securities to which
such Holder is entitled, in fully registered form, registered in such name or
names as may be directed by such Holder. If fewer than all of the Warrants
evidenced by such Warrant Certificate are exercised, the Company shall execute,
and an authorized officer of the Warrant Agent shall manually countersign and
deliver, a new Warrant Certificate evidencing the number of such Warrants
remaining unexercised.

         The Company shall not be required to pay any stamp or other tax or
other governmental charge required to be paid in connection with any transfer
involved in the issuance of the Warrant Securities, and in the event that any
such transfer is involved, the Company shall not be required to issue or deliver
any Warrant Security until such tax or other charge shall have been paid or it
has been established to the Company's satisfaction that no such tax or other
charge is due.

                                                6

<PAGE>

                                    ARTICLE 3
            OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT

         SECTION 3.01. No Rights as Warrant Securityholder Conferred by Warrant
or Warrant Certificates. No Warrant Certificate or Warrant evidenced thereby
shall entitle the Holder or any beneficial owner thereof to any of the rights of
a holder or beneficial owner of Warrant Securities, including, without
limitation, [the right to receive the payment of principal of (premium, if any)
or interest, if any, on Warrant Securities or to enforce any of the covenants in
the Indenture] [the right to receive dividend payments on the Warrant Securities
or any voting rights].

         SECTION 3.02. Lost, Mutilated, Stolen, or Destroyed Warrant
Certificates. Upon receipt by the Warrant Agent of evidence reasonably
satisfactory to it and the Company of the ownership of and the loss, mutilation,
theft or destruction of any Warrant Certificate and of such security or
indemnity as may be required by the Company and the Warrant Agent to hold each
of them and any agent of them harmless and, in the case of mutilation of a
Warrant Certificate, upon surrender thereof to the Warrant Agent for
cancellation, then, in the absence of notice to the Company or the Warrant Agent
that such Warrant Certificate has been acquired by a bona fide purchaser, the
Company shall execute, and an authorized officer of the Warrant Agent shall
manually countersign and deliver, in exchange for or in lieu of the lost,
mutilated, stolen or destroyed Warrant Certificate, a new Warrant Certificate of
the same tenor and evidencing a like number of Warrants. Upon the issuance of
any new Warrant Certificate under this Section, the Company may require the
payment of a sum sufficient to cover any stamp or other tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Warrant Agent) in connection
therewith. Every substitute Warrant Certificate executed and delivered pursuant
to this Section in lieu of any lost, mutilated, stolen or destroyed Warrant
Certificate shall represent an additional contractual obligation of the Company,
whether or not the lost, stolen or destroyed Warrant Certificate shall be at any
time enforceable by anyone, and shall be entitled to the benefits of this
Agreement equally and proportionately with any and all other Warrant
Certificates duly executed and delivered hereunder. The provisions of this
Section are exclusive and shall preclude (to the extent lawful) all other rights
and remedies with respect to the replacement of lost, mutilated, stolen or
destroyed Warrant Certificates.

         SECTION 3.03. Enforcement of Rights. Notwithstanding any of the
provisions of this Agreement, any Holder of a Warrant Certificate, without the
consent of the Warrant Agent, the Trustee, the holder of any Offered Securities
or the Holder of any other Warrant Certificate, may, in its own behalf and for
its own benefit, enforce, and may institute and maintain any suit, action or
proceeding

                                        7

<PAGE>

against the Company suitable to enforce, or otherwise in respect of, its right
to exercise its Warrants in the manner provided in its Warrant Certificate and
in this Agreement.

         SECTION 3.04. Merger, Consolidation, Conveyance or Transfer. (a) If at
any time there shall be a merger or consolidation of the Company or a conveyance
or transfer of its property and assets substantially as an entirety [as
permitted under the Indenture], then in any such event the successor or assuming
corporation referred to therein shall succeed to and be substituted for the
Company, with the same effect[, subject to the Indenture,] as if it had been
named herein and in the Warrant Certificates as the Company; the Company shall
thereupon, except in the case of a transfer by way of lease, be relieved of any
further obligation hereunder and under the Warrants and the Warrant
Certificates, and the Company as the predecessor corporation, except in the case
of a transfer by way of lease, may thereupon or at any time thereafter be
dissolved, wound up or liquidated. Such successor or assuming corporation may
thereupon cause to be signed, and may issue either in its own name or in the
name of the Company, Warrant Certificates evidencing any or all of the Warrants
issuable hereunder which theretofore shall not have been signed by the Company,
and may execute and deliver Warrant Securities in its own name [,pursuant to the
Indenture,] in fulfillment of its obligations to deliver Warrant Securities upon
exercise of the Warrants. All the Warrants so issued shall in all respects have
the same legal rank and benefit under this Agreement as the Warrants theretofore
or thereafter issued in accordance with the terms of this Agreement as though
all of such Warrants had been issued at the date of the execution hereof. In any
case of any such merger, consolidation, conveyance or transfer, such changes in
phraseology and form (but not in substance) may be made in the Warrant
Certificates representing the Warrants thereafter to be issued as may be
appropriate.

         (b) The Warrant Agent may receive a written opinion of legal counsel
(who shall be acceptable to the Warrant Agent) as conclusive evidence that any
such merger, consolidation, conveyance or transfer complies with the provisions
of this Section and the Indenture.

                  [Add Anti-Dilution provisions as necessary.]

                                    ARTICLE 4
                              EXCHANGE AND TRANSFER

         SECTION 4.01. Exchange and Transfer. (a) [1: Upon] [2: Prior to the
Detachable Date, a Warrant Certificate may be exchanged or transferred only
together with the Offered Security to which such Warrant Certificate was
initially attached, and only for the purpose of effecting, or in conjunction
with, an

                                        8

<PAGE>

exchange or transfer of such Offered Security. Prior to any Detachable Date,
each transfer of the Offered Security, shall operate also to transfer the
related Warrant Certificates. On or after the Detachable Date, upon] surrender
at the corporate trust office of the Warrant Agent at [address] [or      ],
Warrant Certificates evidencing Warrants may be exchanged for Warrant
Certificates in other authorized denominations evidencing such Warrants or the
transfer thereof may be registered in whole or in part; provided, however, that
such other Warrant Certificates shall evidence the same aggregate number of
Warrants as the Warrant Certificates so surrendered.

          (b) The Warrant Agent shall keep, at its corporate trust office at
[address] [and at ], books in which, subject to such reasonable regulations as
it may prescribe, it shall register Warrant Certificates and exchanges and
transfers of outstanding Warrant Certificates upon surrender of such Warrant
Certificates to the Warrant Agent at its corporate trust office at [address] [or
] for exchange or registration of transfer, properly endorsed [or accompanied by
appropriate instruments of registration of transfer and written instructions for
transfer, all in form satisfactory to the Company and the Warrant Agent.]

          (c) No service charge shall be made for any exchange or registration
of transfer of Warrant Certificates, but the Company may require payment of a
sum sufficient to cover any stamp or other tax or other governmental charge that
may be imposed in connection with any such exchange or registration of transfer.

          (d) Whenever any Warrant Certificates, are so surrendered for exchange
or registration of transfer, an authorized officer of the Warrant Agent shall
manually countersign and deliver to the person or persons entitled thereto a
Warrant Certificate or Warrant Certificates, duly authorized and executed by the
Company, as so requested. The Warrant Agent shall not effect any exchange or
registration of transfer which will result in the issuance of a Warrant
Certificate, evidencing a fraction of a Warrant or a number of full Warrants and
a fraction of a Warrant

          (e) All Warrant Certificates, issued upon any exchange or registration
of transfer of Warrant Certificates shall be the valid obligations of the
Company, evidencing the same obligations, and entitled to the same benefits
under this Agreement, as the Warrant Certificates surrendered for such exchange
or registration or transfer.

          SECTION 4.02. Treatment of Holders of Warrant Certificates. Each
Holder of a Warrant Certificate, by accepting the same, consents and agrees with
the Company, the Warrant Agent and every subsequent Holder of such Warrant
Certificate that until the transfer of such Warrant Certificate is registered on
the

                                        9

<PAGE>

books of such Warrant Agent [2: or, prior to the Detachable Date, until the
transfer of the Offered Security to which such Warrant Certificate is attached,
is registered in the register of the Offered Securities], the Company and the
Warrant Agent may treat the registered Holder of such Warrant Certificate as the
absolute owner thereof for any purpose and as the person entitled to exercise
the rights represented by the Warrants evidenced thereby, any notice to the
contrary notwithstanding.

         SECTION 4.03. Cancellation of Warrant Certificates. [(a)] Any Warrant
Certificate surrendered for exchange or registration of transfer or exercise of
the Warrants evidenced thereby shall, if surrendered to the Company, be
delivered to the Warrant Agent, and all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly cancelled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant Certificate shall be issued hereunder in exchange therefor or in lieu
thereof. The Warrant Agent shall cause all cancelled Warrant Certificates to be
destroyed and shall deliver a certificate of such destruction to the Company.

         [(b) If the Company notifies the Trustee of its election to redeem [2:
prior to the Detachable Date] [, as a whole but not in part,] [2: the Offered
Securities [or] [and]] the Warrant Securities pursuant to the Indenture or the
terms thereof, the Company may elect, and shall give notice to the Warrant Agent
of its election, to cancel the unexercised Warrants, the Warrant Certificates
and the rights evidenced thereby. Promptly after receipt of such notice by the
Warrant Agent, the Company shall, or, at the Company's request, the Warrant
Agent shall in the name of and at the expense of the Company, give notice of
such cancellation to the Holders of the Warrant Certificates, such notice to be
so given not less than 30 nor more than 60 days prior to the date fixed for the
redemption of [2: the Offered Securities [or] [and]] the Warrant Securities
pursuant to the Indenture or the terms thereof. The unexercised Warrants, the
Warrant Certificates and the rights evidenced thereby shall be cancelled and
become void on the 15th day prior to such date fixed for redemption.]

                                    ARTICLE 5
                          CONCERNING THE WARRANT AGENT

         SECTION 5.01. Warrant Agent. The Company hereby appoints as Warrant
Agent of the Company in respect of the Warrants and the Warrant Certificates
upon the terms and subject to the conditions herein and in the Warrant
Certificates set forth; and    hereby accepts such appointment. The Warrant
Agent shall have the powers and authority granted to and conferred upon it in
the Warrant Certificates and herein and such further powers and authority to act
on behalf of the Company as the Company may hereafter grant to or confer upon
it.

                                       10

<PAGE>

All of the terms and provisions with respect to such powers and authority
contained in the Warrant Certificates are subject to and governed by the terms
and provisions hereof.

         SECTION 5.02. Conditions of Warrant Agent's Obligations. The Warrant
Agent accepts its obligations herein set forth upon the terms and conditions
hereof, including the following, to all of which the Company agrees and to all
of which the rights hereunder of the Holders from time to time of the Warrant
Certificates shall be subject:

          (a) Compensation and Indemnification. The Company agrees promptly to
pay the Warrant Agent the compensation to be agreed upon with the Company for
all services rendered by the Warrant Agent and to reimburse the Warrant Agent
for reasonable out-of-pocket expenses (including reasonable attorneys' fees)
incurred by the Warrant Agent without negligence, bad faith or breach of this
Agreement on its part in connection with the services rendered hereunder by the
Warrant Agent. The Company also agrees to indemnify the Warrant Agent for, and
to hold it harmless against, any loss, liability or expense incurred without
negligence or bad faith on the part of the Warrant Agent, arising out of or in
connection with its acting as Warrant Agent hereunder, as well as the reasonable
costs and expenses of defending against any claim of such liability.

          (b) Agent for the Company. In acting under this Agreement and in
connection with the Warrants and the Warrant Certificates, the Warrant Agent is
acting solely as agent of the Company and does not assume any obligation or
relationship of agency or trust for or with any of the Holders of Warrant
Certificates or beneficial owners of Warrants.

          (c) Counsel. The Warrant Agent may consult with counsel satisfactory
to it in its reasonable judgment, and the advice of such 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 accordance with the
advice of such counsel.

          (d) Documents. The Warrant Agent shall be protected and shall incur no
liability for or in respect of any action taken or thing suffered by it in
reliance upon any Warrant Certificate, notice, direction, consent, certificate,
affidavit, statement or other paper or document reasonably believed by it to be
genuine and to have been presented or signed by the proper parties.

          (e) Certain Transactions. The Warrant Agent, and its officers,
directors and employees, may become the owner of, or acquire any interest in,
Warrants, with the same rights that it or they would have if it were not the
Warrant Agent

                                       11

<PAGE>

hereunder, and, to the extent permitted by applicable law, it or they may engage
or be interested in any financial or other transaction with the Company and may
act on, or as depositary, trustee or agent for, any committee or body of holders
of Warrant Securities or other obligations of the Company as freely as if it
were not the Warrant Agent hereunder. [Nothing in this Warrant Agreement shall
be deemed to prevent the Warrant Agent from acting as Trustee under the
Indenture.]

         (f) No Liability for Interest. The Warrant Agent shall have no
liability for interest on any monies at any time received by it pursuant to any
of the provisions of this Agreement or of the Warrant Certificates.

         (g) No Liability for Invalidity. The Warrant Agent shall not be under
any responsibility with respect to the validity or sufficiency of this Agreement
or the execution and delivery hereof (except the due authorization to execute
this Agreement and the due execution and delivery hereof by the Warrant Agent)
or with respect to the validity or execution of any Warrant Certificates (except
its countersignature thereof).

         (h) No Liability for Recitals. The recitals contained herein shall be
taken as the statements of the Company and the Warrant Agent assumes no
liability for the correctness of the same.

         (i) No Implied Obligations. The Warrant Agent shall be obligated to
perform only such duties as are herein and in the Warrant Certificates
specifically set forth and no implied duties or obligations shall be read into
this Agreement or the Warrant Certificates against the Warrant Agent. The
Warrant Agent shall not be under any obligation to take any action hereunder
which may tend to involve it in any expense or liability, the payment of which
within a reasonable time is not, in its reasonable opinion, assured to it. The
Warrant Agent shall not be accountable or under any duty or responsibility for
the use by the Company of any of the Warrant Certificates countersigned by the
Warrant Agent and delivered by it to the Company pursuant to this Agreement or
for the application by the Company of the proceeds of the Warrant Certificates.
The Warrant Agent shall have no duty or responsibility in case of any default by
the Company in the performance of its covenants or agreements contained herein
or in the Warrant Certificates or in the case of the receipt of any written
demand from a Holder of a Warrant Certificate with respect to such default,
including, without limiting the generality of the foregoing, any duty or
responsibility to initiate or attempt to initiate any proceedings at law or
otherwise or, except as provided in Section 6.02, to make any demand upon the
Company.

         SECTION 5.03. Resignation and Appointment of Successor. (a) The Company
agrees, for the benefit of the Holders from time to time of the Warrant

                                       12

<PAGE>

Certificates, that there shall at all times be a Warrant Agent hereunder until
all the Warrants have been exercised or are no longer exercisable.

         (b) The Warrant Agent may at any time resign as such by giving written
notice of its resignation to the Company, specifying the desired date on which
its resignation shall become effective; provided, however, that such date shall
be not less than 90 days after the date on which such notice is given unless the
Company agrees to accept shorter notice. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor Warrant Agent (which
shall be a bank or trust company in good standing, authorized under the laws of
the jurisdiction of its organization to exercise corporate trust powers) by
written instrument in duplicate signed on behalf of the Company, one copy of
which shall be delivered to the resigning Warrant Agent and one copy to the
successor Warrant Agent. The Company may, at any time and for any reason, remove
the Warrant Agent and appoint a successor Warrant Agent (qualified as aforesaid)
by written instrument in duplicate signed on behalf of the Company and
specifying such removal and the date when it is intended to become effective,
one copy of which shall be delivered to the Warrant Agent being removed and one
copy to the successor Warrant Agent. Any resignation or removal of the Warrant
Agent and any appointment of a successor Warrant Agent shall become effective
upon acceptance of appointment by the successor Warrant Agent as provided in
this subsection (b). In the event a successor Warrant Agent has not been
appointed and accepted its duties within 90 days of the Warrant Agent's notice
of resignation, the Warrant Agent may apply to any court of competent
jurisdiction for the designation of a successor Warrant Agent. Upon its
resignation or removal, the Warrant Agent shall be entitled to the payment by
the Company of the compensation and to the reimbursement of all reasonable
out-of-pocket expenses (including reasonable attorneys' fees) incurred by it
hereunder as agreed to in Section 5.02(a).

           (c) The Company shall remove the Warrant Agent and appoint a
successor Warrant Agent if the Warrant Agent (i) shall become incapable of
acting, (ii) shall be adjudged bankrupt or insolvent, (iii) shall commence a
voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to it or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, (iv) shall consent to, or shall have had
entered against it a court order for, any such relief or to the appointment of
or taking possession by any such official in any involuntary case or other
proceedings commenced against it, (v) shall make a general assignment for the
benefit of creditors or (vi) shall fail generally to pay its debts as they
become due. Upon the appointment as aforesaid of a successor Warrant Agent and
acceptance by it of such appointment, the

                                       13

<PAGE>

predecessor Warrant Agent shall, if not previously disqualified by operation of
law, cease to be Warrant Agent hereunder.

         (d) Any successor Warrant Agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor and the Company an instrument
accepting such appointment hereunder, and thereupon such successor Warrant
Agent, without any further act, deed or conveyance, shall become vested with all
the authority, rights, powers, immunities, duties and obligations of such
predecessor with like effect as if originally named as Warrant Agent hereunder,
and such predecessor shall thereupon become obligated to transfer, deliver and
pay over, and such successor Warrant Agent shall be entitled to receive, all
monies, securities and other property on deposit with or held by such
predecessor as Warrant Agent hereunder.

         (e) Any corporation into which the Warrant Agent hereunder may be
merged or converted or any corporation with which the Warrant Agent may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Warrant Agent shall be a party, or any corporation to
which the Warrant Agent shall sell or otherwise transfer all or substantially
all the assets and business of the Warrant Agent, provided that it shall be
qualified as aforesaid, shall be the successor Warrant Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

                                    ARTICLE 6
                                  MISCELLANEOUS

         SECTION 6.01. Amendment. This Agreement and the terms of the Warrants
and the Warrant Certificates may be amended by the parties hereto, without the
consent of the Holder of any Warrant Certificate or the beneficial owner of any
Warrant, for the purpose of curing any ambiguity, or of curing, correcting or
supplementing any defective or inconsistent provision contained herein or in the
Warrant Certificates, or making any other provisions with respect to matters or
questions arising under this Agreement as the Company and the Warrant Agent may
deem necessary or desirable, provided that such action shall not affect
adversely the interests of the Holders of the Warrant Certificates or the
beneficial owners of Warrants in any material respect.

         SECTION 6.02. Notices and Demands to the Company and Warrant Agent. If
the Warrant Agent shall receive any notice or demand addressed to the Company by
the Holder of a Warrant Certificate pursuant to the provisions of the Warrant
Certificates, the Warrant Agent shall promptly forward such notice or demand to
the Company.

                                       14

<PAGE>

         SECTION 6.03.  Addresses.  Any communication from the Company to the
Warrant Agent with respect to this Agreement shall be addressed to          ,
Attention:          , and any communication from the Warrant Agent to the
Company with respect to this Agreement shall be addressed to The Williams
Companies, Inc., One Williams Center, Tulsa, Oklahoma 74172, Attention: (or such
other address as shall be specified in writing by the Warrant Agent or by the
Company).

         SECTION 6.04. Applicable Law. The validity, interpretation and
performance of this Agreement and each Warrant Certificate issued hereunder and
of the respective terms and provisions hereof and thereof shall be governed by,
and construed in accordance with, the laws of the State of New York.

         SECTION 6.05. Delivery of Prospectus. The Company will furnish to the
Warrant Agent sufficient copies of a prospectus relating to the Warrant
Securities deliverable upon exercise of Warrants (the "Prospectus"), and the
Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent
will deliver to the Holder of the Warrant Certificate evidencing such Warrant,
prior to or concurrently with the delivery of the Warrant Securities issued upon
such exercise, a Prospectus. The Warrant Agent shall not, by reason of any such
delivery, assume any responsibility for the accuracy or adequacy of such
Prospectus.

         SECTION 6.06. Obtaining of Governmental Approval. The Company will from
time to time take all action which may be necessary to obtain and keep effective
any and all permits, consents and approvals of governmental agencies and
authorities and securities acts filings under United States federal and state
laws (including without limitation a registration statement in respect of the
Warrants and Warrant Securities under the Securities Act of 1933), which may be
or become requisite in connection with the issuance, sale, transfer and delivery
of the Warrant Certificates, the exercise of the Warrants, the issuance, sale,
transfer and delivery of the Warrant Securities issued upon exercise of the
Warrants or upon the expiration of the period during which the Warrants are
exercisable.

         SECTION 6.07. Persons Having Rights under Warrant Agreement. Nothing in
this Agreement shall give to any person other than the Company, the Warrant
Agent and the Holders of the Warrant Certificates any right, remedy or claim
under or by reason of this Agreement.

         SECTION 6.08. Headings. The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the provisions
hereof.

                                       15

<PAGE>

         SECTION 6.09. Counterparts. This Agreement may be executed in any
number of counterparts, each of which as so executed shall be deemed to be an
original, but such counterparts shall together constitute but one and the same
instrument.

         SECTION 6.10. Inspection of Agreement. A copy of this Agreement shall
be available at all reasonable times at the principal corporate trust office of
the Warrant Agent for inspection by the Holder of any Warrant Certificate. The
Warrant Agent may require such Holder to submit his Warrant Certificate for
inspection by it.

         SECTION 6.11. Notices to Holders of Warrants. Any notice to Holders of
Warrants evidenced by Warrant Certificates which by any provisions of this
Warrant Agreement is required or permitted to be given shall be given by first
class mail prepaid at such Holder's address as it appears on the books of the
Warrant Agent.

                                       16

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and their respective corporate seals to be hereunto affixed and
attested, all as of the date first above written.

                                    THE WILLIAMS COMPANIES, INC.

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

                                    [WARRANT AGENT]

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

                                       17

<PAGE>

                                                                       EXHIBIT A

                          [FORM OF WARRANT CERTIFICATE]

                                     [Face]

                                                  Prior to _______________, this
                                                  Warrant Certificate may be
                                                  transferred or exchanged if
                                                  and only if the [Title of
                                                  Offered Security] to which it
                                                  was initially attached is so
                                                  transferred or exchanged.

Form of Legend if                                 [Prior to ________________,
Warrants are not                                  Warrants evidenced by this
immediately exercisable:                          Warrant Certificate cannot
                                                  be exercised.]

                EXERCISABLE ONLY IF AUTHENTICATED BY THE WARRANT
                            AGENT AS PROVIDED HEREIN

               VOID AFTER THE CLOSE OF BUSINESS ON _________, ____

                          THE WILLIAMS COMPANIES, INC.

                        Warrant Certificate representing
                              Warrants to purchase
                          [Title of Warrant Securities]
                               as described herein

                                   ----------

No.                                                    _______________ Warrants

         This certifies that [_____________________] or registered assigns is
the registered owner of the above indicated number of Warrants, each Warrant
entitling such registered owner to purchase, at any time [after the close of
business on _________, ____, and] on or before the close of business on
____________, ____, [____ shares of the [Title of Warrant Securities]]
[$________ aggregate principal amount of [Title of Warrant Securities]] (the
"Warrant Securities") of

                                       A-1

<PAGE>

The Williams Companies, Inc. (the "Company")[, issued or to be issued under the
Indenture (as hereinafter defined),] on the following basis.(2) [During the
period from ________, ____ through and including ___________, ____, each Warrant
shall entitle the Holder thereof, subject to the provisions of this Agreement,
to purchase from the Company the [principal] amount of Warrant Securities stated
above in this Warrant Certificate at the exercise price of [___] [___% of the
principal amount thereof [plus accrued amortization, if any, of the original
issue discount of the Warrant Securities][plus accrued interest, if any, from
the most recent date from which interest shall have been paid on the Warrant
Securities or, if no interest shall have been paid on the Warrant Securities,
from ___________, ____]; [in each case, the original issue discount ($_______
for each $1,000 principal amount of Warrant Securities) will be amortized at a
___% annual rate, computed on a[n] [semi-]annual basis[, using a 360-day year
constituting of twelve 30-day months]] (the "Exercise Price"). The Holder of
this Warrant Certificate may exercise the Warrants evidenced hereby, in whole or
in part, by surrendering this Warrant Certificate, with the purchase form set
forth hereon duly completed, accompanied [by payment in full, in lawful money of
the United States of America, [in cash or by certified check or official bank
check in New York Clearing House funds] [by bank wire transfer in immediately
available funds]], the Exercise Price for each Warrant exercised, to the Warrant
Agent (as hereinafter defined), at the corporate trust office of [name of
Warrant Agent], or its successor as warrant agent (the "Warrant Agent") [or at
____________,] at the addresses specified on the reverse hereof and upon
compliance with and subject to the conditions set forth herein and in the
Warrant Agreement (as hereinafter defined). This Warrant Certificate may be
exercised only for the purchase of [ shares of ] Warrant Securities [in the
principal amount of ] or any integral multiple thereof. [Cashless Exercise
Option]

         The term "Holder" as used herein shall mean, prior to _________, ____
(the "Detachable Date"), the registered owner of the Company's [title of Offered
Securities] to which such Warrant Certificate was initially attached, and after
such Detachable Date, the person in whose name at the time such Warrant
Certificate shall be registered upon the books to be maintained by the Warrant
Agent for that purpose pursuant to Section 3.01 of the Warrant Agreement.

         Any whole number of Warrants evidenced by this Warrant Certificate may
be exercised to purchase Warrant Securities in registered form. Upon any
exercise of fewer than all of the Warrants evidenced by this Warrant
Certificate, there shall be issued to the registered owner hereof a new Warrant
Certificate evidencing the number of Warrants remaining unexercised.

--------
         (2) Complete and modify the following provisions as appropriate to
reflect the terms of the Warrants and the Warrant Securities.

                                       A-2

<PAGE>

         This Warrant Certificate is issued under and in accordance with the
Warrant Agreement dated as of __________, ____ (the "Warrant Agreement"),
between the Company and the Warrant Agent and is subject to the terms and
provisions contained in the Warrant Agreement, to all of which terms and
provisions the Holder of this Warrant Certificate consents by acceptance hereof.
Copies of the Warrant Agreement are on file at the above-mentioned office of the
Warrant Agent [and at _______________].

         [The Warrant Securities to be issued and delivered upon the exercise of
Warrants evidenced by this Warrant Certificate will be issued under and in
accordance with an Indenture, dated as of ________________ (the "Indenture"),
between the Company and ________________, a [corporation] [national banking
association] organized under the laws of the State of __________, as trustee
(such trustee, and any successors to such trustee, the "Trustee") and will be
subject to the terms and provisions contained in the Warrant Securities and in
the Indenture. Copies of the Indenture, including the form of the Warrant
Securities, are on file at the corporate trust office of the Trustee [and at
     ].]

         Prior to ___________, ____ (the "Detachable Date"), this Warrant
Certificate may be exchanged or transferred only together with the [title of
Offered Security] (the "Offered Security") to which this Warrant Certificate was
initially attached, and only for the purpose of effecting, or in conjunction
with, an exchange or transfer of such Offered Security. Additionally, on or
prior to the Detachable Date, each transfer of such Offered Security on the
register of the Offered Securities shall operate also to transfer this Warrant
Certificate. After the Detachable Date, this Warrant Certificate, and all rights
hereunder, may be transferred when surrendered at the corporate trust office of
the Warrant Agent [or _________] by the registered owner or his assigns, in
person or by an attorney duly authorized in writing, in the manner and subject
to the limitations provided in the Warrant Agreement.

         Except as provided in the immediately preceding paragraph, after
authentication by the Warrant Agent and prior to the expiration of this Warrant
Certificate, this Warrant Certificate may be exchanged at the corporate trust
office of the Warrant Agent [or at _____________] for Warrant Certificates
representing the same aggregate number of Warrants.

         This Warrant Certificate shall not entitle the registered owner hereof
to any of the rights of a registered holder of the Warrant Securities,
including, without limitation, [the right to receive payments of principal of
(and premium, if any) or interest, if any, on the Warrant Securities or to
enforce any of the covenants of the Indenture] [the right to receive dividend
payments on the Warrant Securities or any voting rights].

                                       A-3

<PAGE>

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

         This Warrant Certificate shall not be valid or obligatory for any
purpose until authenticated by the Warrant Agent.

         IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be duly executed under its corporate seal.

         Dated:
                --------------              THE WILLIAMS COMPANIES, INC.

                                            By
                                               ------------------------
Attest:

------------------------------

Certificate of Authentication

         This is one of the Warrant Certificates referred to in the
within-mentioned Warrant Agreement.

------------------------------------
                    As Warrant Agent

By
   ---------------------------------
                Authorized Signature

                                       A-4

<PAGE>

                     [REVERSE] [FORM OF WARRANT CERTIFICATE]
                     (Instructions for Exercise of Warrants)

         To exercise any Warrants evidenced hereby, the Holder of this Warrant
Certificate must pay [in cash or by certified check or official bank check in
New York Clearing House funds or by bank wire transfer in immediately available
funds], the Exercise Price in full for each of the Warrants exercised, to
_________, Corporate Trust Department, _______________, Attn: ___________ [or
________________], which payment should specify the name of the Holder of this
Warrant Certificate and the number of Warrants exercised by such Holder. In
addition, the Holder of this Warrant Certificate should complete the information
required below and present in person or mail by registered mail this Warrant
Certificate to the Warrant Agent at the addresses set forth below.

                               [FORM OF EXERCISE]

                   (To be executed upon exercise of Warrants.)

         The undersigned hereby irrevocably elects to exercise _________
Warrants, represented by this Warrant Certificate, to purchase [______ shares of
[Title of Warrant Securities]] [$_________ aggregate principal amount of the
[Title of Warrant Securities]] (the "Warrant Securities") of THE WILLIAMS
COMPANIES, INC. and represents that he has tendered payment for such Warrant
Securities [in cash or by certified check or official bank check in New York
Clearing House funds or by bank wire transfer in immediately available funds] to
the order of The Williams Companies, Inc., c/o Treasurer in the amount of
$___________ in accordance with the terms hereof. The undersigned requests that
said [principal] amount of Warrant Securities be in fully registered form, in
the authorized denominations, registered in such names and delivered, all as
specified in accordance with the instructions set forth below.

         If said [principal] amount of Warrant Securities is less than all of
the Warrant Securities purchasable hereunder, the undersigned requests that a
new Warrant Certificate representing the remaining balance of the Warrants
evidenced hereby be issued and delivered to the undersigned unless otherwise
specified in the instructions below.

Dated:

                                               Name
                                                    ----------------------------
                                                           (Please Print)
------------------------------------
(Insert Social Security or Other
Identifying Number of Holder)                  Address
                                                       -------------------------

                                                       -------------------------

                                               Signature
                                                         -----------------------

                                               (Signed exactly as name appears
                                               on the other side of this Warrant
                                               Certificate)

                                       A-5

<PAGE>

            This Warrant may be exercised at the following addresses:

                  By hand at

                                    -------------------

                                    -------------------

                                    -------------------

                                    -------------------

                  By mail at
                                    -------------------

                                    -------------------

                                    -------------------

                                    -------------------

(Instructions as to form and delivery of Warrant Securities and/or Warrant
Certificates):

                                       A-6

<PAGE>

                              [[FORM OF ASSIGNMENT]

              (TO BE EXECUTED TO TRANSFER THE WARRANT CERTIFICATE)

         FOR VALUE RECEIVED __________________ hereby sells, assigns and
transfers unto

                                               Please insert social
                                               security or other
                                               identifying number

                                               ---------------------------------

-----------------------------------
  (Please print name and address
       including zip code)

--------------------------------------------------------------------------------
the right represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint _________________, Attorney, to transfer said
Warrant Certificate on the books of the Warrant Agent with full power of
substitution.

Dated:

                                         ---------------------------------------
                                                        Signature
                                         (Signed exactly as name appears on the
                                         other side of this Warrant Certificate)

Signature Guarantee:

                                            ]
-------------------------------------------
Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor
program reasonably acceptable to the Warrant Agent)

                                       A-7

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