Document:

<PAGE>

                                                                    EXHIBIT 10.3

                     FOURTH AMENDMENT TO TERM LOAN AGREEMENT

         THIS FOURTH AMENDMENT TO TERM LOAN AGREEMENT (the "AMENDMENT") is
entered into effective as of March 11, 2002, among The Williams Companies, Inc.,
a Delaware corporation (the "COMPANY"), Credit Lyonnais New York Branch, as
Administrative Agent (in such capacity, "ADMINISTRATIVE AGENT"), and certain
LENDERS (herein so called) named on SCHEDULE 2.1 (as amended and supplemented
from time to time) of the Term Loan Agreement (as hereinafter defined).

                                    RECITALS

         A. The Company, Lenders, Commerzbank AG New York and Cayman Island
Branches, as Syndication Agent, The Bank of Nova Scotia, as Documentation Agent,
and Administrative Agent entered into that certain Term Loan Agreement dated as
of April 7, 2000, as modified and amended pursuant to that certain First
Amendment to Term Loan Agreement dated as of August 21, 2000, that certain
Waiver and Second Amendment to Term Loan Agreement dated as of January 31, 2001,
and that certain Third Amendment to Term Loan Agreement dated as of February 7,
2002 (such Term Loan Agreement, as so modified and amended, herein referred to
as the "TERM LOAN AGREEMENT") which Term Loan Agreement has been further
modified by that certain letter agreement (the "PRIOR WAIVER LETTER"), dated as
of November 6, 2000, and that certain Limited Waiver of Term Loan Agreement
dated as of July 20, 2001 (the "JULY WAIVER", and together with the Prior Waiver
Letter herein collectively referred to as "EXISTING WAIVERS"). Unless otherwise
indicated herein, all terms used with their initial letter capitalized are used
herein with their meaning as defined in the Term Loan Agreement, and all Section
references are to Sections in the Term Loan Agreement.

         B. The Company has requested that the Lenders further modify and amend
certain terms and provisions of the Term Loan Agreement.

         C. The Lenders are willing to so modify and amend the Term Loan
Agreement, as requested, in accordance with the terms and provisions set forth
herein and upon the condition that the Company and the Determining Lenders shall
have executed and delivered this Amendment and that the Company shall have fully
satisfied the terms and conditions hereof.

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Company, Administrative Agent and the Lenders hereby agree, as
follows:

PARAGRAPH 1. AMENDMENT OF SECTION 8.7 OF THE TERM LOAN AGREEMENT. Section 8.7 of
the Term Loan Agreement is hereby amended by deleting the word "or" at the end
of subclause (d) thereof, deleting the period at the end of subclause (e)
thereof and inserting "; or" in its place, and inserting the following new
subclause (f) immediately following the existing clause (e):

                  "(f) Kern River Gas Transmission Company in connection with
         the transaction with a subsidiary of Berkshire Hathaway, Inc announced
         by TWC on March

                                       1
<PAGE>

         7, 2002, from (1) selling, conveying or otherwise transferring all or
         substantially all of its assets or (2) merging or consolidating with or
         into another Person."

PARAGRAPH 2. AMENDMENT EFFECTIVE DATE. This Amendment shall be binding upon all
Sparties to the Loan Papers on the last day upon which the following has
occurred:

                  (a) Counterparts of this Amendment shall have been executed
         and delivered to Administrative Agent by the Company, Administrative
         Agent, and the Determining Lenders or when Administrative Agent shall
         have received telecopied, telexed, or other evidence satisfactory to it
         that all such parties have executed and are delivering to
         Administrative Agent counterparts thereof.

Upon satisfaction of the foregoing conditions, (i) this Amendment shall be
deemed effective on and as of March 11, 2002 (the "AMENDMENT EFFECTIVE DATE").

PARAGRAPH 3. REPRESENTATIONS AND WARRANTIES. As a material inducement to Lenders
to execute and deliver this Amendment, the Company hereby represents and
warrants to Lenders (with the knowledge and intent that Lenders are relying upon
the same in entering into this Amendment) the following: (a) the representations
and warranties in the Term Loan Agreement and in all other Loan Papers are true
and correct on the date hereof in all material respects, as though made on the
date hereof except to the extent such representations and warranties relate to
an earlier date and except with respect to Section 7.6 of the Term Loan
Agreement as disclosed in its Annual Report on Form 10-K for the year ended
December 31, 2001; and (b) no Default or Potential Default exists under the Loan
Papers.

PARAGRAPH 4. MISCELLANEOUS.

         4.1 EFFECT ON LOAN DOCUMENTS. The Term Loan Agreement and all related
Loan Papers shall remain unchanged and in full force and effect, except as
provided in this Amendment, and are hereby ratified and confirmed. On and after
the Amendment Effective Date, all references to the "TERM LOAN AGREEMENT" shall
be to the Term Loan Agreement as herein amended. The execution, delivery, and
effectiveness of this Amendment shall not, except as expressly provided herein,
operate as a waiver of any Rights of the Lenders under the Term Loan Agreement
or any Loan Papers, nor constitute a waiver under the Term Loan Agreement or any
other provision of the Loan Papers.

         4.2 REFERENCE TO MISCELLANEOUS PROVISIONS. This Amendment and the other
documents delivered pursuant to this Amendment are part of the Loan Papers
referred to in the Term Loan Agreement, and the provisions relating to Loan
Papers set forth in SECTION 12 are incorporated herein by reference the same as
if set forth herein verbatim.

         4.3 COSTS AND EXPENSES. The Company agrees to pay promptly the
reasonable fees and expenses of counsel to Administrative Agent for services
rendered in connection with the preparation, negotiation, reproduction,
execution, and delivery of this Amendment.

         4.4 COUNTERPARTS. This Amendment may be executed in a number of
identical counterparts, each of which shall be deemed an original for all
purposes, and all of which constitute, collectively, one agreement; but, in
making proof of this Amendment, it shall not be necessary to produce or account
for more than one such counterpart. It is not necessary that all parties execute
the same counterpart so long as identical counterparts are executed by the
Company, each Determining Lender, and Administrative Agent.

                                       2
<PAGE>

         4.5 THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT AMONG THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENT OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
AMONG THE PARTIES.

         Executed as of the date first above written, but effective as of the
Amendment Effective Date.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                             SIGNATURE PAGES FOLLOW]

                                       3
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

Address for notices
One Williams Center, Suite 5000             THE WILLIAMS COMPANIES, INC.,
Tulsa, Oklahoma 74172                       a Delaware corporation
Attn: Treasurer
Telephone No.: (918) 573-5551
Facsimile No.: (918) 573-2065               By: /s/ James G. Ivey
                                               ---------------------------------
                                            Name: James G. Ivey
                                                  ------------------------------
                                            Title: Treasurer
                                                   -----------------------------

With a copy to:
One Williams Center, Suite 4100
Tulsa, Oklahoma 74172
Attn: Associate General Counsel
Telephone No.: (918) 573-2613
Facsimile No.: (918) 573-4503

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

1301 Avenue of the Americas                 CREDIT LYONNAIS NEW YORK BRANCH,
New York, New York 10019                    as Administrative Agent and as a
                                            Lender

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

With a copy to:
1000 Louisiana Street, Suite 5360
Houston, Texas 77002
Attention: Mr. Robert LaRocque
Telephone No.: 713-753-8733
Facsimile No.: 713-751-0307

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

1230 Peachtree Street, Suite 3500           COMMERZBANK AG NEW YORK AND GRAND
Atlanta, Georgia 30309                      CAYMAN BRANCHES, as Syndication
Attn: Brian Campbell                        Agent, as a Lender and as a
Telephone: (404) 888-6518                   Designating Lender
Facsimile: (404) 888-6539

                                            By: /s/ Harry P. Yergey
                                               ---------------------------------
                                            Name: Harry P. Yergey
                                                 -------------------------------
                                            Title: Senior Vice President &
                                                   Manager
                                                  ------------------------------

With a copy to:
                                            By: /s/ Brian J. Campbell
                                               ---------------------------------
Holland & Knight                            Name: Brian J. Campbell
1291 West Peachtree Street, Suite 2000           -------------------------------
Atlanta, Georgia 30309                      Title: Senior Vice President
Attn: Ms. Sherie Holmes                          -------------------------------
Telephone: (404) 898-8197
Facsimile: (404) 881-0470

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

                                            FOUR WINDS FUNDING CORPORATION,  as
                                            a Designated Lender

                                            By   COMMERZBANK AKTIENGESELLCHAFT,
                                                 as Administrator and
                                                 Attorney-in-Fact

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

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

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

1100 Louisiana Street, Suite 3000           THE BANK OF NOVA SCOTIA,
Houston, Texas 77002                        as Documentation Agent and as a
Attn: Joe Latanzie                          Lender
Telephone: (713) 759-3435
Facsimile: (713) 752-2425                   By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

1020 19th Street, NW, Suite 500             ABU DHABI INTERNATIONAL BANK INC.,
Washington, DC 20036                        as a Lender
Attn: David Young
Telephone: (202) 842-7956
Facsimile: (202) 842-7955                   By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

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

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

470 Park Avenue South                       BANK POLSKA KASA OPIEKI S.A.,
32nd Street, 15th Floor                     as a Lender
New York, New York 10016
Attn: Hussein El-Tawil
Telephone: (212) 251-1245                   By: /s/ Hussein B. El-Tawil
Facsimile: (212) 679-5910                      ---------------------------------
                                            Name: Hussein B. El-Tawil
                                                 -------------------------------
                                            Title: Vice President
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

Strong Capital Management                   STRONG ADVANTAGE FUND, INC.
100 Heritage Reserve                        as a Lender
Menomonee Falls, Wisconsin 53201
Attn: Joe Ford
Telephone: (414) 973-5266                   By: /s/ Gilbert L. Southwell, III
Facsimile: (414) 973-5239                      ---------------------------------
                                            Name: Gilbert L. Southwell, III
                                                 -------------------------------
                                            Title: Assistant Secretary
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

c/o JP Morgan Chase                         CHANG HWA COMMERCIAL BANK, LTD., NEW
4 Chase MetroTech Center                    YORK BRANCH, as a Lender
20th Floor (West)
Brooklyn, New York 11245
Attn: Vivian Chen                           By:
Telephone: (718) 242-8815                      ---------------------------------
Facsimile: (718) 242-7159                   Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

With a copy to:

c/o JP Morgan Chase
4 Chase MetroTech Center
20th Floor (West)
Brooklyn, New York 11245
Attn: Peter Lieu
Telephone: (718) 242-3688
Facsimile: (718) 242-7159

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

16333 Broadway, 40th Floor                  THE DAI-ICHI KANGYO BANK, LTD., as a
New York, New York 10019                    Lender
Attn: Maureen Carson
Telephone: (212) 649-0325
Facsimile: (212) 541-4822                   By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

With a copy to:

16333 Broadway, 40th Floor
New York, New York 10019
Attn: Bert Tang
Telephone: (212) 432-8839
Facsimile: (212) 541-4805

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

76 Madison Avenue, 12th Floor               FIRST COMMERCIAL BANK - NEW YORK
New York, New York 10016                    AGENCY, as a Lender
Attn: Max Kwok
Telephone: (212) 684-9248
Facsimile: (212) 684-9315                   By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

380 Madison Avenue, 21st Floor              GULF INTERNATIONAL BANK,
New York, New York 10017                    as a Lender
Attn: Bill Shepard
Telephone: (212) 922-2323
Facsimile: (212) 922-2309                   By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

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

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

200 Madison Avenue, Suite 20007             HUA NAN COMMERCIAL BANK, LTD.,
New York, New York 10016                    as a Lender
Attn: Frank Tang
Telephone: (646) 435-1881
Facsimile: (212) 417-9341                   By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

150 East 42nd Street, 29th Floor            BAYERISCHE HYPO-UND
New York, New York 10017                    VEREINSBANK AG, NEW YORK
Attn: Steve Atwell                          BRANCH, as a Lender
Telephone: (212) 672-5458
Facsimile: (212) 672-5530
                                            By: /s/ Steven Atwell
                                               ---------------------------------
                                            Name: Steven Atwell
                                                 -------------------------------
                                            Title: Director
                                                  ------------------------------

                                            By: /s/ Shannon Batchman
                                               ---------------------------------
                                            Name: Shannon Batchman
                                                 -------------------------------
                                            Title: Director
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

245 Peachtree Center Avenue, Suite 2550     KBC BANK N.V., as a Lender
Atlanta, Georgia 30303
Attn: Filip Ferrante
Telephone: (404) 584-5466                   By: /s/ Jean-Pierre Diels
Facsimile: (404) 584-5465                      ---------------------------------
                                            Name: Jean-Pierre Diels
                                                 -------------------------------
                                            Title: First Vice President
                                                  ------------------------------

                                            By: /s/ Eric Raskin
                                               ---------------------------------
                                            Name: Eric Raskin
                                                 -------------------------------
                                            Title: Vice President
                                                  ------------------------------

With a copy to:

125 West 55th Street
New York, New York 10019
Attn: Diane Grimmig
Telephone: (212) 541-0707
Facsimile: (212) 541-0784

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

Grosse Bleiche 54-56                        LANDESBANK RHEINLAND-PFALZ,
Mainz, Germany 55098                        GIROZENTRALE,
Attn: wolf-Rudiger Stahl                    as a Lender
Telephone: (011) 49-61-31-1332747
Facsimile: (011) 49-61-31-1322684
                                            By: /s/ Wolf-Rudiger Stahl
                                               ---------------------------------
                                            Name: Wolf-Rudiger Stahl
                                                 -------------------------------
                                            Title: Senior Vice President
                                                  ------------------------------

                                            By: /s/ Beatrix Eberz
                                               ---------------------------------
                                            Name: Beatrix Eberz
                                                 -------------------------------
                                            Title: Assistant Vice President
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

Ursulinenstra(beta)e 2                      LANDESBANK SAAR GIROZENTRALE,
66111 Saarbrucken, Germany                  as a Lender
Attn: Rolf Buchholz
Telephone: (011) 49-681-383-1304
Facsimile: (011) 49-681-383-1208            By: /s/ Reiner Montag
                                               ---------------------------------
                                            Name: Reiner Montag
                                                 -------------------------------
                                            Title: Senior Vice President
                                                  ------------------------------

                                            By: /s/ Ulrich Hildebrandt
                                               ---------------------------------
                                            Name: Ulrich Hildebrandt
                                                 -------------------------------
                                            Title: Senior Vice President
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

Martensdamm 6                               LANDESBANK SCHLESWIG-HOLSTEIN
Kiel, Germany 24103                         GIROZENTRALE, as a Lender
Attn: Kerstin Spaeter
Telephone: (011) 49-431-900-2765
Facsimile: (011) 49-431-900-1794            By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

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

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

811 Wilshire Boulevard, Suite 1900          LAND BANK OF TAIWAN, LOS ANGELES
Los Angeles, California 90017               BRANCH, as a Lender
Attn: Jonathan Kuo
Telephone: (213) 532-3789
Facsimile: (213) 532-3766                   By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

2250 East 73rd Street, Suite 200            LOCAL OKLAHOMA BANK, N.A.,
Tulsa, Oklahoma 74136                       as a Lender
Attn: Elisabeth Blue
Telephone: (918) 497-2422
Facsimile: (918) 497-2497                   By: /s/ James N. Young, Jr.
                                               ---------------------------------
                                            Name: James N. Young, Jr.
                                                 -------------------------------
                                            Title: Executive Vice President
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

299 Park Avenue, 17th Floor                 NATIONAL BANK OF KUWAIT, S.A.K.,
New York, New York 10171                    GRAND CAYMAN BRANCH, as a Lender
Attn: Wendy Wanninger
Telephone: (212) 303-9807
Facsimile: (212) 888-2958                   By: /s/ Robert J. McNeill
                                               ---------------------------------
                                            Name: Robert J. McNeill
                                                 -------------------------------
                                            Title: Executive Manager
                                                  ------------------------------

                                            By: /s/ Muhannad Kamal
                                               ---------------------------------
                                            Name: Muhannad Kamal
                                                 -------------------------------
                                            Title: General Manager
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

1200 Smith Street, Suite 3100               BNP PARIBAS, as a Lender
Houston, Texas 77002
Attn: Mark Cox
Telephone: (713) 982-1152                   By:
Facsimile: (713) 859-6915                      ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

With a copy to:

1200 Smith Street, Suite 3100
Houston, Texas 77002
Attn: David Dodd
Telephone: (713) 982-1156
Facsimile: (713) 859-6915

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

135 Bishopsgate                             THE ROYAL BANK OF SCOTLAND PLC,
London, England EC2M 3UR                    as a Lender
Attn: Jane Woodley
Telephone: (011) 44-207-375-5724
Facsimile: (011) 44-207-375-5919            By: /s/ Jane M. Woodley
                                               ---------------------------------
                                            Name: Jane M. Woodley
                                                  ------------------------------
                                            Title: Associate Director
                                                   -----------------------------

With a copy to:

JP Morgan Chase Towers
600 Travis, Suite 6070
Houston, Texas 77002
Attn: Adam Pettifer
Telephone: (713) 221-2416
Facsimile: (713) 221-2430

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

277 Park Avenue, 6th Floor                  SUMITOMO MITSUI BANKNG
New York, New York 10172                    CORPORATION, as a Lender
Attn: Bruce Meredith
Telephone: (212) 224-4194
Facsimile: (212) 224-4384                   By: /s/ Leo E. Pagarigan
                                               ---------------------------------
                                            Name:  Leo E. Pagarigan
                                                   -----------------------------
                                            Title: Vice President
                                                   -----------------------------

With a copy to:

277 Park Avenue, 6th Floor
New York, New York 10172
Attn: Kenneth Austin
Telephone: (212) 224-4043
Facsimile: (212) 224-4384

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

1221 McKinney Street, Suite 4100            THE INDUSTRIAL BANK OF JAPAN,
Houston, Texas 77010                        LIMITED, NEW YORK BRANCH, as a
Attn: Lynn Williford                        Lender
Telephone: (713) 651-9444 x104
Facsimile: (713) 651-9209
                                            By: /s/ Michael N. Oakes
                                               ---------------------------------
                                            Name: Michael N. Oakes
                                                 -------------------------------
                                            Title: Senior Vice President,
                                                   Houston Office
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of March 11, 2002, among The Williams Companies, Inc., as the
Company, Credit Lyonnais New York Branch, as Administrative Agent and as a
Lender, and certain Lenders named therein.

55 East 52nd Street, 11th Floor             UNITED FINANCIAL OF JAPAN, as a
New York, New York 10055                    Lender
Attn: Ryoichi Konishi
Telephone: (212) 339-6172
Facsimile: (212) 754-2360                   By: /s/ C. Lawrence Murphy
                                               ---------------------------------
                                            Name: C. Lawrence Murphy
                                                 -------------------------------
                                            Title: Senior Vice President
                                                  ------------------------------

                       [SIGNATURE PAGE TO FOURTH AMENDMENT
                             TO TERM LOAN AGREEMENT]<PAGE>
                                                                    EXHIBIT 10.4
================================================================================

                          FIRST SUPPLEMENTAL INDENTURE

                            dated as of March 5, 2002

                                      among

                                 WCG NOTE TRUST,
                                     Issuer,

                              WCG NOTE CORP., INC.,
                                    Co-Issuer

                                       and

                              THE BANK OF NEW YORK,
                  Indenture Trustee and Securities Intermediary

                       8.25% Senior Secured Notes due 2004

================================================================================

<PAGE>

                  This FIRST SUPPLEMENTAL INDENTURE, dated as of March 5, 2002
(this "First Supplemental Indenture"), is among WCG NOTE TRUST, a special
purpose statutory business trust created under the law of the State of Delaware
(the "Issuer"), WCG NOTE CORP., INC., a special purpose corporation organized
under the law of the State of Delaware (the "Co-Issuer" and, together with the
Issuer, the "Issuers"), and THE BANK OF NEW YORK, a New York banking corporation
duly organized and existing under the law of the State of New York (as
successor-in-interest to United States Trust Company of New York) (in its
capacity as Indenture Trustee, together with its successors in such capacity,
the "Indenture Trustee" and, in its capacity as securities intermediary,
together with its successors in such capacity, the "Securities Intermediary").

                                   WITNESSETH:

                  WHEREAS, the Issuers and the Indenture Trustee and Securities
Intermediary have entered into an Indenture, dated as of March 28, 2001 (as
amended, supplemented or otherwise modified and in effect from time to time, the
"Indenture"), providing for the creation, execution, authentication and delivery
of certain Senior Notes of the Issuers;

                  WHEREAS, the Issuers desire to supplement and amend the
Indenture by modifying and deleting certain provisions thereof and by adding
certain provisions thereto (collectively, the "Amendments");

                  WHEREAS, the Issuers have obtained the consent of the Majority
Noteholders to the Amendments in accordance with Section 12.02 and Article XIII
of the Indenture; and

                  WHEREAS, (i) the Issuers have requested that the Indenture
Trustee execute and deliver this First Supplemental Indenture pursuant to
Section 12.02 of the Indenture, (ii) all requirements necessary to make this
First Supplemental Indenture a valid instrument in accordance with its terms,
including the filing with the Indenture Trustee of evidence of the consent of
the Majority Noteholders, have been performed, and (iii) the execution and
delivery of this First Supplemental Indenture have been duly authorized in all
respects;

                                       2
<PAGE>
                  NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Issuers and the
Indenture Trustee, for the benefit of the Noteholders, hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  SECTION 1.01. Definitions. Unless otherwise defined herein or
unless the context shall otherwise require, capitalized terms used in this First
Supplemental Indenture shall have the meanings assigned to such terms in, or
incorporated by reference into, the Indenture. For all purposes of this First
Supplemental Indenture, "Effective Date" shall mean the first day on which each
of the Issuer, the Co-Issuer, the Indenture Trustee and Williams receives
executed counterparts of this First Supplemental Indenture.

                                   ARTICLE II

                                   AMENDMENTS

                  SECTION 2.01. Amendments to the Indenture. The Indenture is
hereby amended, effective on the Effective Date, as follows:

                  (a) The definition of "Qualified Equity Proceeds" in Section
1.01 of the Indenture is hereby amended to read as follows:

         ""Qualified Equity Proceeds" means amounts equivalent to the sum of (x)
         the proceeds of (i) sales of mandatorily convertible preferred (as to
         which the conversion must occur within three years of its issuance) or
         common equity securities of Williams, (ii) conversion by its terms of
         convertible debt or non-mandatorily convertible preferred stock into
         common equity securities of Williams, (iii) sales by Williams of its
         equity interests in WCG (or any of WCG's Subsidiaries), (iv) the
         liquidation by Williams of securities or assets received by Williams in
         exchange for its equity interests in WCG and (v) sales or dispositions
         of assets of Williams or its Subsidiaries for cash up to the amount of
         equity that has been issued by Williams in one or more consolidations,
         acquisitions, mergers or other similar transactions, in each case,
         occurring after the

                                       3
<PAGE>

         Closing Date and (y) all other amounts determined by Williams in its
         sole and absolute discretion to be appropriate, regardless of the
         source."

                  (b) The definition of "Semi-Annual Cash Flow" in Section 1.01
of the Indenture is hereby amended to read as follows:

         ""Semi-Annual Cash Flow" has the meaning assigned to such term in
Section 5.02(c)."

                  (c) The definition of "Stock Price/Credit Downgrade Trigger"
in Section 1.01 of the Indenture is hereby deleted.

                  (d) The definition of "Transaction Documents" set forth in
Annex A to the Participation Agreement and incorporated by reference in Section
1.01 of the Indenture is hereby amended for purposes of the Indenture by
inserting the phrase ", the Williams Payment Agreement" immediately after the
phrase "the WCG Note Reset Remarketing Agreement."

                  (e) The definition of "Trigger Event" in Section 1.01 of the
Indenture is hereby amended to read as follows:

         ""Trigger Event" means the occurrence of (a) the Acceleration Trigger
         or (b) the Maturity Trigger."

                  (f) A new definition, "Repayment Obligations," is hereby added
to Section 1.01 of the Indenture, in the appropriate alphabetical sequence, to
read as follows:

         ""Repayment Obligations" has the meaning assigned to such term in
         Section 2 of the Williams Payment Agreement."

                  (g) The definition of "Williams Event" in Section 1.01 of the
Indenture is hereby amended to read as follows:

         ""Williams Event" means the occurrence of any event described in
         Sections 9.01(c) through (i), (k) and (m) with respect to Williams or
         the Share Trust."

                                       4
<PAGE>

                  (h) A new definition, "Williams Payment Agreement," is hereby
added to Section 1.01 of the Indenture, in the appropriate alphabetical
sequence, to read as follows:

         ""Williams Payment Agreement" means the Payment Agreement, dated as of
         March 5, 2002, between Williams and the Issuer."

                  (i) Section 3.01 of the Indenture is hereby amended by
inserting the phrase "and the payment of the Issuer's Repayment Obligations to
Williams under the Williams Payment Agreement" immediately after the phrase
"Remarketing and Support Agreement" in the first sentence thereof.

                  (j) Section 3.01 of the Indenture is hereby further amended by
(i) redesignating paragraph (c) as paragraph (d), (ii) redesignating paragraph
(d) as paragraph (e) and (iii) adding a new paragraph (c) as follows:

         "(c) the Williams Payment Agreement and all of the rights of the Issuer
         and the Indenture Trustee under the Williams Payment Agreement;"

                  (k) Section 3.02(b) of the Indenture is hereby amended by
adding the following at the end thereof:

         "and the Issuer's Repayment Obligations to Williams pursuant to Section
         2 of the Williams Payment Agreement."

                  (l) Section 5.02 of the Indenture is hereby amended by (i)
deleting the parenthetical phrase contained in paragraph (b) thereof and (ii)
adding a new paragraph (c) as follows:

         "(c) The Issuer shall deposit or cause to be deposited into the
         Indenture Interest Account all payments made by Williams in accordance
         with the Williams Payment Agreement (such amounts deposited in respect
         of clauses (a), (b) and (c) collectively, the "Semi-Annual Cash Flow").

                  (m) Section 5.03 of the Indenture is hereby amended to read as
follows:

                                       5
<PAGE>

         "Section 5.03. Indenture Redemption Account. The Issuer shall deposit
         or cause to be deposited into the Indenture Redemption Account (a) all
         payments from WCG in respect of any prepayment of the WCG Note, in
         whole or in part, (b) all payments made by Williams in accordance with
         the Williams Payment Agreement, (c) proceeds from a Reset Sale in
         accordance with Section 9.04(i)(i) and (d) proceeds from a sale of the
         WCG Note in accordance with Sections 9.04(i)(ii), (iii) or (iv);
         provided that any such amounts that are not specified in a notice to
         the Indenture Trustee to fund an Early Redemption shall be invested in
         accordance with Section 5.01(g) in Financial Investments maturing no
         later than the Maturity Date; provided further that if, following the
         payment in full of the Secured Obligations, amounts are subsequently
         deposited into the Indenture Redemption Account, then by 9:00 a.m. the
         Business Day after such amounts are deposited into the Indenture
         Redemption Account, the Indenture Trustee shall direct the Securities
         Intermediary to withdraw the Amount Available from the Indenture
         Redemption Account and pay such amount to the Issuer."

                  (n) Section 5.05(a)(iii) of the Indenture is hereby amended to
read as follows:

         "(iii) (A) If Williams shall have exercised the Liquidity Option
         pursuant to the Liquidity Agreement or made any payment pursuant to
         Section 1(a)(i) of the Williams Payment Agreement and the Noteholders
         have received the Senior Note Interest Amount pursuant to Section
         5.05(b)(ii) and (B) WCG subsequently deposits money in respect of
         interest on the WCG Note with the Indenture Trustee, by 9:00 a.m. the
         Business Day after any such deposit by WCG, the Indenture Trustee shall
         direct the Securities Intermediary to withdraw the Amount Available
         from the Indenture Interest Account and pay such amount to Williams as
         payment of the Liquidity Reimbursement Obligations or the Repayment
         Obligations, as the case may be."

                  (o) Priority third of Section 5.05(b)(ii) of the Indenture is
hereby amended to read as follows:

         "third, (i) any amounts remaining in the Share Trust Proceeds Account
         and the Indenture Redemption Account to be invested in accordance with
         Section 5.01(g) and (ii) any amounts remaining in the Indenture
         Interest Account to be paid (A) first to Williams in an amount up to

                                       6
<PAGE>

         the aggregate amount of the Liquidity Reimbursement Obligations and the
         Repayment Obligations and (B) second to the Issuer to be applied in
         accordance with the Issuer Trust Agreement."

                  (p) Priority fourth of Section 5.05(c) of the Indenture is
hereby amended to read as follows:

         "fourth, to the extent that (i) Williams has exercised the Liquidity
         Option in accordance with the Liquidity Agreement, (ii) Williams has
         exercised the Share Trust Release Option in accordance with Section
         7(d) of the Remarketing and Support Agreement or (iii) Williams has
         made any payment in accordance with Section 1 of the Williams Payment
         Agreement, from any amounts remaining in the Indenture Accounts, to
         Williams in an amount up to the amount of the Issuer's Reimbursement
         Obligations and Repayment Obligations to Williams; and"

                  (q) Priority third of Section 5.05(d) of the Indenture is
hereby amended to read as follows:

         "third, to the extent that (i) Williams has exercised the Liquidity
         Option, (ii) Williams has exercised the Share Trust Release Option,
         (iii) Williams has made any payment in accordance with Section 1 of the
         Williams Payment Agreement or (iv) the Indenture Trustee has received
         any payments in respect of the Share Trust Remedy pursuant to Sections
         7(a) or 8(g) or 8(h) of the Remarketing and Support Agreement, from any
         amounts remaining in the Indenture Accounts, to Williams in an amount
         up to the amount of the Issuer's Reimbursement Obligations and
         Repayment Obligations to Williams; and"

                  (r) Priority third of Section 5.05(e) of the Indenture is
hereby amended to read as follows:

         "third, with respect to an Early Redemption in whole only, to the
         extent that (i) Williams has exercised the Liquidity Option or (ii)
         Williams has made any payment in accordance with Section 1 of the
         Williams Payment Agreement, any amounts remaining in the Indenture
         Interest Account and the Indenture Redemption Account, to Williams in
         an amount up to the amount of the Issuer's Reimbursement Obligations
         and Repayment Obligations;"

                                       7
<PAGE>

                  (s) Section 5.05 of the Indenture is hereby further amended by
redesignating paragraph (i) as paragraph (j) and adding a new paragraph (i) as
follows:

         "(i) If the Indenture Trustee shall not have received any payment due
         and payable under the Williams Payment Agreement by the Business Day
         such payment became due and payable, the Indenture Trustee shall
         promptly, but in any event within two Business Days, demand such
         payment from Williams."

                  (t) Section 9.01(h) of the Indenture is hereby amended to read
as follows:

         "(h) the commencement of any voluntary or involuntary proceeding under
         any bankruptcy or insolvency law seeking liquidation, reorganization or
         other relief with respect to any of the Issuer, Williams or the Share
         Trust, and, in the case of any such involuntary proceeding with respect
         to Williams, such proceeding has not been terminated within 60 days
         after commencement;"

                  (u) Section 9.01(k) of the Indenture is hereby amended by
deleting the phrase "; and" at the end thereof and substituting, in lieu
thereof, the following:

         ", except, in the case of the Co-Issuer, WCG or WCL, to the extent that
         such enforcement may be limited by applicable bankruptcy, insolvency,
         reorganization, moratorium or other similar laws affecting creditors'
         rights generally and by general principles of equity (regardless of
         whether enforcement is sought in equity or at law);"

                  (v) Section 9.01(l) of the Indenture is hereby amended by (i)
deleting the term "Issuers" contained therein and substituting, in lieu thereof,
the term "Issuer" and (ii) inserting the word "and" at the end thereof.

                  (w) Section 9.01 of the Indenture is hereby further amended by
adding a new paragraph (m) as follows:

                                       8
<PAGE>

         "(m) the failure by Williams to make (or cause to be made on its
         behalf) any payment when due and payable under the Williams Payment
         Agreement;"

                  (x) Section 9.04(b)(ii) of the Indenture is hereby amended by
deleting the phrase "or a Stock Price/Credit Downgrade Trigger" contained
therein.

                  (y) Section 9.04(b) of the Indenture is hereby further amended
by adding a new paragraph (iv) as follows:

         "(iv) Notwithstanding the foregoing, upon the occurrence of a Williams
         Event resulting from an Event of Default under Section 9.01(m), the
         Share Trust Remedy Standstill Period shall not affect in any way the
         rights and obligations set forth in the Williams Payment Agreement or
         the ability of the Indenture Trustee to immediately enforce the same."

                  (z) Section 10.02 of the Indenture is hereby amended by
inserting the phrase "and Repayment Obligations" immediately after the phrase
"Issuer's Reimbursement Obligations" in the first sentence thereof.

                  (aa) Section 15.01(a) of the Indenture is hereby amended by
deleting the proviso thereto and substituting, in lieu thereof, the following:

         "provided that if an Acceleration Trigger subsequently occurs, the
         Senior Notes shall be subject to a Mandatory Redemption pursuant to
         Section 15.01(c)."

                  (bb) Section 15.01(b) of the Indenture is hereby amended to
read as follows:

         "(b) [RESERVED]."

                                  ARTICLE III

                              CONDITIONS PRECEDENT

                  SECTION 3.01. Conditions Precedent. The obligations of each of
the parties hereto under this First Supplemental Indenture shall be subject to

                                       9
<PAGE>

the satisfaction (or waiver by such party) on or prior to the Effective Date of
the following conditions precedent:

                  (a) Documents. This First Supplemental Indenture and the
Williams Payment Agreement shall be reasonably satisfactory to such party and
shall, upon execution and delivery thereof, be in full force and effect.

                  (b) Authorization, Execution and Delivery of Agreements. This
First Supplemental Indenture, the First Supplemental Indenture, dated as of
March 5, 2002, to the Indenture (the "WCG Note Indenture") governing the 8.25%
Senior Reset Notes due 2008 between Williams Communications Group, Inc. and The
Bank of New York (as successor-in-interest to United States Trust Company of New
York), as trustee (the "WCG Supplemental Indenture"), and the Williams Payment
Agreement shall have been duly authorized, executed and available for delivery
by each of the parties thereto (other than such party).

                  (c) Collateral. All actions necessary, in the reasonable
opinion of such party (other than the Indenture Trustee), in order to
effectively establish and create a first priority lien on and perfected security
interest in the Williams Payment Agreement and all of the rights of the Issuer
under the Williams Payment Agreement in favor of the Indenture Trustee, subject
only to Permitted Liens, shall have been duly taken (or provisions therefor
shall have been made), including, without limitation, the making of all
conveyances, registrations and filings.

                  (d) Opinions. Opinions addressed to Salomon Smith Barney Inc.,
as solicitation agent, and the Indenture Trustee dated the Effective Date of the
following counsel shall have been delivered to the applicable addressees, each
such opinion to be reasonably satisfactory to the recipients and their counsel:

                           (i) Skadden, Arps, Slate, Meagher & Flom LLP, special
         counsel to Williams;

                           (ii) William G. von Glahn, Esq., internal counsel of
         Williams; and

                                       10
<PAGE>

                           (iii) Counsel for the Issuers.

                  (e) Certificates. (i) On the Effective Date, each Issuer and
Williams shall have delivered to the Indenture Trustee a certificate of each
other party dated the Effective Date, in form and substance reasonably
satisfactory to the Indenture Trustee, certifying (A) as to the facts and
circumstances applicable to the certifying party set forth in Section 3.01(f)
hereof, (B) that each of this First Supplemental Indenture and/or the Williams
Payment Agreement, as the case may be, has been duly authorized, executed and
delivered by such certifying party and is in full force and effect and (C) that
such certifying party has satisfied all conditions precedent (other than
conditions precedent that have been waived) contained in this Section 3.01
required to be satisfied by it on or prior to the Effective Date.

                  (ii) On the Effective Date, each Issuer and Williams shall
have delivered to the Indenture Trustee a certificate dated the Effective Date,
in form and substance reasonably satisfactory to the Indenture Trustee,
attaching and certifying (A) the completeness of the certifying party's
organizational documents, (B) the resolutions of the certifying party's board of
directors or other governing body, if applicable, duly authorizing the
certifying party's execution, delivery and performance of this First
Supplemental Indenture and/or the Williams Payment Agreement, as the case may
be, and that such resolutions have not been rescinded, amended or modified, and
(C) the incumbency and signatures of the persons authorized to execute and
deliver this First Supplemental Indenture and/or the Williams Payment Agreement,
as the case may be.

                  (f) Certain Facts and Circumstances. (i) No condition, event
or act that with the giving of notice and/or the lapse of time and/or any
determination or certification would constitute a Trigger Event (as such term is
amended by this First Supplemental Indenture) or an Event of Default (as such
term is amended by this First Supplemental Indenture) shall have occurred and be
continuing on the Effective Date.

                  (ii) No change in the financial or other condition of Williams
shall have occurred that would reasonably be expected to result in a Williams
Material Adverse Effect, and no other act, event or circumstance shall have
occurred that has had or could reasonably be expected to result in a Williams
Material Adverse Effect.

                  (iii) There shall be no actions, suits, investigations or
proceedings at law or in equity by or before any Governmental Authority

                                       11
<PAGE>

pending or, to the actual knowledge of Williams, threatened, and there shall not
have been issued or, to the actual knowledge of Williams, proposed to be issued
any orders, judgments or decrees by any Governmental Authority to set aside,
restrain, enjoin or prevent (x) the performance of any of the Transaction
Documents or (y) the execution, delivery or performance of this First
Supplemental Indenture or the Williams Payment Agreement or the consummation of
the transactions contemplated hereby and thereby.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

                  SECTION 4.01. Representations and Warranties. (i)Williams
represents and warrants to the other parties to this Agreement that each of the
representations and warranties of Williams set forth in Sections 4.1 and 4.4 of
the Participation Agreement, which representations and warranties are
incorporated herein by reference, shall be true and correct on and as of the
Effective Date in all material respects as if made on and as of such date (or,
if stated to have been made solely as of an earlier date, were true and correct
in all material respects as of such date), provided, however, that (i) any
reference to "Event of Default" or "Trigger Event" in such representations and
warranties shall refer to the definitions of "Event of Default" or "Trigger
Event," as the case may be, as amended by this First Supplemental Indenture,
(ii) any reference to "Transaction Documents" in such representations and
warranties shall include the Williams Payment Agreement, the Indenture, as
amended by this First Supplemental Indenture, and the WCG Note Indenture, as
amended by the WCG Supplemental Indenture, and (iii) any reference to
"incorporated by reference in the Offering Memorandum" in such representations
and warranties shall include all documents filed by either Williams or WCG
pursuant to Sections 13, 14 or 15(d) of the Exchange Act after the date of the
Offering Memorandum and prior to the date hereof and all other information as to
which public disclosure has been made.

                                       12
<PAGE>

                                    ARTICLE V

                                  MISCELLANEOUS

                  SECTION 5.01. Ratification of Indenture. The Indenture, as
supplemented by this First Supplemental Indenture, is in all respects ratified
and confirmed, and this First Supplemental Indenture shall be deemed part of the
Indenture in the manner and to the extent herein and therein provided.

                  SECTION 5.02. Severability of Provisions. If any provision
hereof shall be held invalid or unenforceable by any court of competent
jurisdiction, such holding shall not invalidate or render unenforceable any
other provision hereof. To the extent permitted by Applicable Law, the Issuers
and the Indenture Trustee hereby agree that any provision hereof that renders
any other term or provision hereof invalid or unenforceable in any respect shall
be modified but only to the extent necessary to avoid rendering such other term
or provision invalid or unenforceable, and such modification shall be
accomplished in the manner that most nearly preserves the benefit of the
Issuers' and the Indenture Trustee's bargain hereunder.

                  SECTION 5.03. Effect of Headings. The heading of the Articles,
Sections, subsections, clauses and paragraphs hereof are for convenience of
reference only and shall not affect the construction or interpretation of this
First Supplemental Indenture.

                  SECTION 5.04. Counterparts. This First Supplemental Indenture
may be executed in any number of counterparts, each of which shall be an
original; but all such counterparts shall together constitute but one and the
same instrument.

                  SECTION 5.05. Governing Law. THE RIGHTS AND OBLIGATIONS OF
EACH OF THE PARTIES UNDER THIS FIRST SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                  SECTION 5.06. Benefit of Agreement. This First Supplemental
Indenture is for the sole benefit of the Issuer, the Co-Issuer, the Indenture
Trustee and the Noteholders and Williams, as an express third-party beneficiary,
and their respective successors and assigns and is not for the benefit of any
other Person. This First Supplemental Indenture may not be amended or
supplemented without the consent of Williams, as express third-party
beneficiary.

                                       13
<PAGE>

                  SECTION 5.07. Limitation on Liability. It is expressly
understood and agreed by the parties hereto with respect to the Issuer that (a)
this First Supplemental Indenture is executed and delivered by Wilmington Trust
Company, not individually or personally, but solely as Issuer Trustee, in the
exercise of the powers and authority conferred and vested in it under the Issuer
Trust Agreement, (b) each of the representations, undertakings and agreements
herein made on the part of the Issuer is made and intended not as personal
representations, undertaking and agreements by Wilmington Trust Company, but is
made and intended for the purposes of binding only the Issuer and (c) under no
circumstances shall Wilmington Trust Company be personally liable for the
payment of any indebtedness or expenses of the Issuer or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Issuer under this First Supplemental Indenture or the other
Transaction Documents; provided that this Section 5.07 shall not limit any
liability expressly assumed by Wilmington Trust Company under the Issuer Trust
Agreement (including Section 7.05 thereof).

                                       14
<PAGE>

                  IN WITNESS WHEREOF, the undersigned have caused this First
Supplemental Indenture to be duly executed as of this 5th day of March, 2002, by
their respective representatives hereunto duly authorized.

                            WCG NOTE TRUST, as Issuer

                            By: Wilmington Trust Company, not in its
                            individual capacity, but solely as Issuer Trustee

                            By:      /s/ JAMES A. HANLEY
                                -----------------------------------------
                                Name:   James A. Hanley
                                Title:  Financial Services Officer

                            WCG NOTE CORP., INC., as Co-Issuer

                            By:      /s/ HOWARD S. KALIKA
                                -----------------------------------------
                                Name:   Howard S. Kalika
                                Title:  Senior Vice President

                            THE BANK OF NEW YORK,
                            as Indenture Trustee

                            By:      /s/ LOUIS P. YOUNG
                                -----------------------------------------
                                Name:   Louis P. Young
                                Title:  Authorized Signer

                            THE BANK OF NEW YORK, as Securities
                              Intermediary for purposes of Section 5.01,
                              Section 5.02, Section 5.03, Section 5.04 and
                              Section 5.05 of the Indenture only

                            By:      /s/ LOUIS P. YOUNG
                                -----------------------------------------
                                Name:   Louis P. Young
                                Title:  Authorized Signer

                                       15
<PAGE>

Accepted and agreed pursuant to
Section 16.09 of the Indenture:

THE WILLIAMS COMPANIES, INC.

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

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