Document:

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                                                                  EXECUTION COPY

                                                                    EXHIBIT 10.2
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                       GUARANTEE AND COLLATERAL AGREEMENT

                                     made by

                        WILLIAMS PRODUCTION HOLDINGS LLC,

                         WILLIAMS PRODUCTION RMT COMPANY

                         and certain of its Subsidiaries

                                   in favor of

                          LEHMAN COMMERCIAL PAPER INC.,

                             as Administrative Agent

                            Dated as of May 30, 2003

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                                TABLE OF CONTENTS

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Section 1.        DEFINED TERMS.................................................................................      1

         1.1      Definitions...................................................................................      1

         1.2      Other Definitional Provisions.................................................................      6

Section 2.        GUARANTEE.....................................................................................      6

         2.1      Guarantee.....................................................................................      6

         2.2      Right of Contribution.........................................................................      7

         2.3      No Subrogation................................................................................      7

         2.4      Amendments, Etc. With Respect to the Borrower Obligations.....................................      8

         2.5      Guarantee Absolute and Unconditional..........................................................      8

         2.6      Reinstatement.................................................................................     10

         2.7      Payments......................................................................................     10

Section 3.        GRANT OF SECURITY INTEREST....................................................................     10

Section 4.        REPRESENTATIONS AND WARRANTIES................................................................     12

         4.1      Representations in Term Loan Agreement........................................................     12

         4.2      Title; No Other Liens.........................................................................     12

         4.3      Perfected First-Priority Liens................................................................     12

         4.4      Chief Executive Office........................................................................     13

         4.5      Inventory and Equipment.......................................................................     13

         4.6      Farm Products.................................................................................     13

         4.7      Pledged Securities............................................................................     13

         4.8      Receivables...................................................................................     13

         4.9      Vehicles......................................................................................     13

         4.10     Intellectual Property.........................................................................     13

         4.11     Contracts.....................................................................................     14

         4.12     Commercial Tort Claims........................................................................     15

Section 5.        COVENANTS.....................................................................................     15

         5.1      Covenants in Term Loan Agreement..............................................................     15

         5.2      Delivery of Instruments and Chattel Paper.....................................................     15

         5.3      Maintenance of Insurance......................................................................     15

         5.4      Payment of Obligations........................................................................     16
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         5.5      Maintenance of Perfected Security Interest; Further Documentation.............................     16

         5.6      Changes in Name, Etc..........................................................................     16

         5.7      Notices.......................................................................................     17

         5.8      Investment Property...........................................................................     17

         5.9      Receivables...................................................................................     18

         5.10     Contracts.....................................................................................     18

         5.11     Intellectual Property.........................................................................     19

         5.12     Vehicles......................................................................................     20

         5.13     Notice of Commercial Tort Claims..............................................................     20

         5.14     Subordination.................................................................................     21

Section 6.        REMEDIAL PROVISIONS...........................................................................     21

         6.1      Certain Matters Relating to Receivables.......................................................     21

         6.2      Communications with Obligors; Grantors Remain Liable..........................................     22

         6.3      Pledged Stock.................................................................................     22

         6.4      Proceeds to be Turned Over To Administrative Agent............................................     23

         6.5      Application of Proceeds.......................................................................     23

         6.6      Code and Other Remedies.......................................................................     24

         6.7      Registration Rights...........................................................................     24

         6.8      Waiver; Deficiency............................................................................     25

Section 7.        THE ADMINISTRATIVE AGENT......................................................................     26

         7.1      Administrative Agent's Appointment as Attorney-in-Fact, etc...................................     26

         7.2      Duty of Administrative Agent..................................................................     27

         7.3      Execution of Financing Statements.............................................................     28

         7.4      Authority of Administrative Agent.............................................................     28

Section 8.        MISCELLANEOUS.................................................................................     28

         8.1      Amendments in Writing.........................................................................     28

         8.2      Notices.......................................................................................     28

         8.3      No Waiver by Course of Conduct; Cumulative Remedies...........................................     28

         8.4      Enforcement Expenses; Indemnification.........................................................     29

         8.5      Successors and Assigns........................................................................     29

         8.6      Set-Off.......................................................................................     29

         8.7      Counterparts..................................................................................     30

         8.8      Severability..................................................................................     30
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         8.9      Section Headings..............................................................................     30

         8.10     Integration...................................................................................     30

         8.11     GOVERNING LAW.................................................................................     30

         8.12     Submission To Jurisdiction; Waivers...........................................................     30

         8.13     Acknowledgements..............................................................................     31

         8.14     Additional Guarantors.........................................................................     31

         8.15     Releases......................................................................................     31

         8.16     WAIVER OF JURY TRIAL..........................................................................     32
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SCHEDULES:

Schedule 1        Notice Addresses of Guarantors

Schedule 2        Description of Pledged Securities

Schedule 3        Filings and Other Actions Required to Perfect
                  Security Interest

Schedule 4        Jurisdiction of Organization, Identification Number
                  and Location of Chief Executive Office

Schedule 5        Locations of Inventory and Equipment

Schedule 6        Intellectual Property

Schedule 7        Existing Prior Liens

Schedule 8        Commercial Tort Claims

ANNEXES:

Annex I           Assumption Agreement

Annex II          Acknowledgment and Consent

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                  GUARANTEE AND COLLATERAL AGREEMENT, dated as of May 30, 2003,
made by Williams Production RMT Company, a Delaware corporation (the
"Borrower"), and each of the other signatories hereto (together with any other
entity that may become a party hereto as provided herein, the "Guarantors" and,
together with the Borrower, the "Grantors" ) in favor of LEHMAN COMMERCIAL PAPER
INC., as Administrative Agent (in such capacity, the "Administrative Agent") for
the banks and other financial institutions (the "Lenders") from time to time
parties to the Term Loan Agreement, dated as of May 30, 2003 (as amended,
supplemented or otherwise modified from time to time, the "Term Loan
Agreement"), among WILLIAMS PRODUCTION HOLDINGS LLC, a Delaware limited
liability company ("Holdings"), the Borrower, the Lenders, LEHMAN BROTHERS INC.
and Banc of America Securities LLC, as joint advisors, joint lead arrangers and
joint book runners, CITICORP USA, INC. and JPMORGAN CHASE BANK, as
co-syndication agents, BANK OF AMERICA, N.A., as documentation agent, and the
Administrative Agent.

                              W I T N E S S E T H:

                  WHEREAS, pursuant to the Term Loan Agreement, the Lenders have
severally agreed to make extensions of credit to the Borrower upon the terms and
subject to the conditions set forth therein;

                  WHEREAS, the Borrower is a member of an affiliated group of
companies that includes each Guarantor;

                  WHEREAS, certain of the Qualified Counterparties may enter
into Specified Hedge Agreements with one or more of the Borrower and the
Guarantors;

                  WHEREAS, the Borrower and the Guarantors are engaged in
related businesses, and each Guarantor will derive substantial direct and
indirect benefit from the making of the term loans under the Term Loan Agreement
and from the Specified Hedge Agreements; and

                  WHEREAS, it is a condition precedent to the obligation of the
Lenders to make their respective term loans to the Borrower under the Term Loan
Agreement that the Borrower and the Guarantors shall have executed and delivered
this Agreement to the Administrative Agent for the benefit of the Secured
Parties;

                  NOW, THEREFORE, in consideration of the premises and to induce
the Administrative Agent and the Lenders to enter into the Term Loan Agreement
and to induce the Lenders to make their respective term loans to the Borrower
thereunder, the Borrower and each Guarantor hereby agrees with the
Administrative Agent, for the benefit of the Secured Parties, as follows:

                            SECTION 1. DEFINED TERMS

                  1.1      Definitions. Unless otherwise defined herein,
terms defined in the Term Loan Agreement and used herein shall have the meanings
given to them in the Term Loan Agreement and the following terms are used herein
as defined in the New York UCC: Accounts, Certificated Security, Chattel Paper,
Commercial Tort Claims, Documents, Equipment, Farm

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Products, General Intangibles, Goods, Instruments, Inventory, Letter of Credit
Rights and Supporting Obligations.

                  (a)      The following terms shall have the following
         meanings:

                  "Agreement": this Guarantee and Collateral Agreement, as the
         same may be amended, supplemented or otherwise modified from time to
         time.

                  "Borrower Term Loan Agreement Obligations": the collective
         reference to the unpaid principal of and interest on the Term Loans and
         all other obligations and liabilities of the Borrower (including,
         without limitation, interest accruing at the then applicable rate
         provided in the Term Loan Agreement after the maturity of the Term
         Loans and interest accruing at the then applicable rate provided in the
         Term Loan Agreement after the filing of any petition in bankruptcy, or
         the commencement of any insolvency, reorganization or like proceeding,
         relating to the Borrower, whether or not a claim for post-filing or
         post-petition interest is allowed in such proceeding) to the
         Administrative Agent or any Lender, whether direct or indirect,
         absolute or contingent, due or to become due, or now existing or
         hereafter incurred, which may arise under, out of, or in connection
         with, the Term Loan Agreement, this Agreement, or the other Loan
         Documents, or any other document made, delivered or given in connection
         therewith, in each case whether on account of principal, interest,
         reimbursement obligations, fees, indemnities, costs, expenses or
         otherwise (including, without limitation, all fees and disbursements of
         counsel to the Administrative Agent or to the Lenders that are required
         to be paid by the Borrower pursuant to the terms of any of the
         foregoing agreements).

                  "Borrower Hedge Agreement Obligations": the collective
         reference to all obligations and liabilities of the Borrower
         (including, without limitation, interest accruing at the then
         applicable rate provided in any Specified Hedge Agreement after the
         filing of any petition in bankruptcy, or the commencement of any
         insolvency, reorganization or like proceeding, relating to the
         Borrower, whether or not a claim for post-filing or post petition
         interest is allowed in such proceeding) to any Qualified Counterparty,
         whether direct or indirect, absolute or contingent, due or to become
         due, or now existing or hereafter incurred, which may arise under, out
         of, or in connection with, any Specified Hedge Agreement or any other
         document made, delivered or given in connection therewith, in each case
         whether on account of principal, interest, reimbursement obligations,
         fees, indemnities, costs, expenses or otherwise (including, without
         limitation, all fees and disbursements of counsel to the relevant
         Qualified Counterparty that are required to be paid by the Borrower
         pursuant to the terms of any Specified Hedge Agreement).

                  "Borrower Obligations": the collective reference to (i) the
         Borrower Term Loan Agreement Obligations, (ii) the Borrower Hedge
         Agreement Obligations, but only to the extent that, and only so long
         as, the Borrower Term Loan Agreement Obligations are secured and
         guaranteed pursuant hereto and (iii) all other obligations and
         liabilities of the Borrower, whether direct or indirect, absolute or
         contingent, due or to become due, or now existing or hereafter
         incurred, which may arise under, out of, or in connection with, this
         Agreement (including, without limitation, all fees and disbursements of
         counsel to

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         the Administrative Agent or to the Secured Parties that are required to
         be paid by the Borrower pursuant to the terms of this Agreement).

                  "Collateral": as defined in Section 3.

                  "Collateral Account": any collateral account established by
         the Administrative Agent as provided in Section 5.12, 6.1 or 6.4.

                  "Contracts": contracts and agreements, as the same may be
         amended, supplemented or otherwise modified from time to time,
         including, without limitation, (i) all rights of any Grantor to receive
         moneys due and to become due to it thereunder or in connection
         therewith, (ii) all rights of any Grantor to damages arising thereunder
         and (iii) all rights of any Grantor to perform and to exercise all
         remedies thereunder.

                  "Copyrights": (i) all copyrights arising under the laws of the
         United States, any other country or any political subdivision thereof,
         whether registered or unregistered and whether published or unpublished
         (including, without limitation, those listed in Schedule 6), all
         registrations and recordings thereof, and all applications in
         connection therewith, including, without limitation, all registrations,
         recordings and applications in the United States Copyright Office, and
         (ii) the right to obtain all renewals thereof.

                  "Copyright Licenses": any written agreement naming any Grantor
         as licensor or licensee (including, without limitation, those listed in
         Schedule 6), granting any right under any Copyright, including, without
         limitation, the grant of rights to manufacture, distribute, exploit and
         sell materials derived from any Copyright.

                  "Deposit Account": as defined in the Uniform Commercial Code
         of any applicable jurisdiction and, in any event, including, without
         limitation, any demand, time, savings, passbook or like account
         maintained with a depositary institution.

                  "Excluded Assets": the collective reference to (i) with
         respect to the Borrower, the Capital Stock owned by the Borrower in (a)
         Bison Royalty LLC, (b) Piceance Production Holdings LLC, (c) Rulison
         Production Company LLC or (d) any Subsidiary created or acquired after
         the Closing Date, in each case to the extent the grant by the Borrower
         of a security interest pursuant to this Agreement in the Borrower's
         right, title and interest in such Capital Stock is prohibited, would
         require the grant of security interest securing obligations or would
         constitute a breach, event of default or event which with notice or
         lapse of time would become an event of default under any contract,
         agreement, instrument or indenture binding on Parent or any of its
         Subsidiaries and in effect on the date hereof, (ii) with respect to the
         (a) Bison Royalty LLC, (b) Piceance Production Holdings LLC, and (c)
         Rulison Production Company LLC, any property other than Oil and Gas
         Property, (iii) with respect to the Borrower, the GE Equipment securing
         the obligations of the Borrower under the GE Loan, to the extent the
         grant by the Borrower of a security interest pursuant to this Agreement
         in the Borrower's right, title and interest in such GE Equipment is
         prohibited, would require the grant of security interest securing
         obligations or would constitute a breach, event of default or event
         which with notice or lapse of time would become an event of default
         under the GE Loan, (iv) with respect to the grant of a security
         interest pursuant to this Agreement in any other

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         Contract, General Intangible, Pledged Securities (other than those
         issued by the Borrower or a Subsidiary), Copyright, License, Patent
         License or Trademark License ("Intangible Assets") which (A) is
         prohibited by legally enforceable provisions of any contract,
         agreement, instrument or indenture governing such Intangible Assets,
         (B) would give any other party to such contract, agreement, instrument
         or indenture a legally enforceable right to terminate its obligations
         thereunder or (C) is permitted only with the consent of another party,
         if the requirement to obtain such consent is legally enforceable and
         such consent has not been obtained; provided, that in any event any
         Receivable or any money or other amounts due or to become due under any
         such contract, agreement, instrument, indenture or other Collateral
         shall not be Excluded Assets to the extent that any of the foregoing is
         (or if it contained a provision limiting the transferability or pledge
         thereof would be) subject to Section 9-406 of the New York UCC, (v) any
         Property that does not constitute (A) Collateral of any Grantor under
         the Existing Guarantee and Collateral Agreement or (B) an Oil and Gas
         Property, in each case, to the extent that the grant of a security
         interest pursuant to this Agreement in such Property is prohibited,
         would require the grant of security interest securing obligations to
         another or would constitute a breach, event of default or event which
         with notice or lapse of time would become an event of default under any
         contract, agreement, instrument or indenture binding on Parent or any
         of its Subsidiaries and in effect on the date hereof or would reduce
         the right of Parent or any of its Subsidiaries to grant a security
         interest securing obligations to another Person under any contract,
         agreement, instrument or indenture binding on Parent or any of its
         Subsidiaries, (vi) any office building or related fixtures, (vii) any
         property set forth on Schedules 6.5(f)(i) or 6.5(i) of the Term Loan
         Agreement and (viii) Foreign Subsidiary Voting Stock excluded from the
         definition of "Pledged Stock" set forth in this Section 1.1.

                  "Existing Guarantee and Collateral Agreement": the Guarantee
         and Collateral Agreement dated as of July 31, 2002 made by the Parent,
         the Borrower and certain of its Subsidiaries in favor of Lehman
         Commercial Paper Inc., as Administrative Agent.

                  "Foreign Subsidiary": any Subsidiary organized under the laws
         of any jurisdiction outside the United States of America.

                  "Foreign Subsidiary Voting Stock": the voting Capital Stock of
         any Foreign Subsidiary.

                  "Grantor Obligations": with respect to the Borrower, the
         Borrower Obligations, and with respect to any other Grantor, its
         Guarantor Obligations.

                   "Guarantor Hedge Agreement Obligations": the collective
         reference to all obligations and liabilities of a Guarantor (including,
         without limitation, interest accruing at the then applicable rate
         provided in any Specified Hedge Agreement after the filing of any
         petition in bankruptcy, or the commencement of any insolvency,
         reorganization or like proceeding, relating to such Guarantor, whether
         or not a claim for post-filing or post petition interest is allowed in
         such proceeding) to any Qualified Counterparty, whether direct or
         indirect, absolute or contingent, due or to become due, or now existing
         or hereafter incurred, which may arise under, out of, or in connection
         with, any Specified Hedge Agreement or any other document made,
         delivered or given in connection

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         therewith, in each case whether on account of principal, interest,
         reimbursement obligations, fees, indemnities, costs, expenses or
         otherwise (including, without limitation, all fees and disbursements of
         counsel to the relevant Qualified Counterparty that are required to be
         paid by such Guarantor pursuant to the terms of any Specified Hedge
         Agreement).

                  "Guarantor Obligations": with respect to any Guarantor, the
         collective reference to (i) any Guarantor Hedge Agreement Obligations
         of such Guarantor, but only to the extent that, and only so long as,
         the other Obligations of such Guarantor are secured and guaranteed
         pursuant hereto, and (ii) all obligations and liabilities of such
         Guarantor which may arise under or in connection with this Agreement
         (including, without limitation, Section 2) or any other Loan Document
         to which such Guarantor is a party, in each case whether on account of
         guarantee obligations, reimbursement obligations, fees, indemnities,
         costs, expenses or otherwise (including, without limitation, all fees
         and disbursements of counsel to the Administrative Agent or to any
         Secured Party that are required to be paid by such Guarantor pursuant
         to the terms of this Agreement or any other Loan Document).

                  "Intellectual Property": the collective reference to all
         rights, priorities and privileges relating to intellectual property,
         whether arising under United States, multinational or foreign laws or
         otherwise, including, without limitation, the Copyrights, the Copyright
         Licenses, the Patents, the Patent Licenses, the Trademarks and the
         Trademark Licenses, and all rights to sue at law or in equity for any
         infringement or other impairment thereof, including the right to
         receive all proceeds and damages therefrom.

                  "Intercompany Note": any promissory note evidencing loans made
         by any Grantor to Parent or any of its Subsidiaries.

                  "Investment Property": the collective reference to (i) all
         "investment property" as such term is defined in Section 9-102(a)(49)
         of the New York UCC (other than any Foreign Subsidiary Voting Stock
         excluded from the definition of "Pledged Stock" in this Section 1.1)
         and (ii) whether or not constituting "investment property" as so
         defined, all Pledged Notes and all Pledged Stock.

                  "Issuers": the collective reference to each issuer of any
         Investment Property.

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

                  "Obligations": (i) in the case of the Borrower, the Borrower
         Obligations, (ii) in the case of each Guarantor, its Guarantor
         Obligations, and (iii) in the case of each Grantor, its Grantor
         Obligations.

                  "Patents": (i) all letters patent of the United States, any
         other country or any political subdivision thereof, all reissues and
         extensions thereof and all goodwill associated therewith, including,
         without limitation, any of the foregoing referred to in Schedule 6,
         (ii) all applications for letters patent of the United States or any
         other country and all divisions, continuations and
         continuations-in-part thereof, including, without

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         limitation, any of the foregoing referred to in Schedule 6, and (iii)
         all rights to obtain any reissues or extensions of the foregoing.

                  "Patent License": all agreements, whether written or oral,
         providing for the grant by or to any Grantor of any right to
         manufacture, use or sell any invention covered in whole or in part by a
         Patent, including, without limitation, any of the foregoing referred to
         in Schedule 6.

                  "Pledged Notes": all promissory notes listed on Schedule 2,
         all Intercompany Notes at any time issued to any Grantor and all other
         promissory notes issued to or held by any Grantor (other than
         promissory notes issued in connection with extensions of trade credit
         by any Grantor in the ordinary course of business).

                  "Pledged Securities": the collective reference to the Pledged
         Notes and the Pledged Stock.

                  "Pledged Stock": the shares of Capital Stock listed on
         Schedule 2, together with any other shares, stock certificates, options
         or rights of any nature whatsoever in respect of the Capital Stock of
         any Person that may be issued or granted to, or held by, any Grantor
         while this Agreement is in effect; provided that in no event shall more
         than 65% of the total outstanding Foreign Subsidiary Voting Stock of
         any Foreign Subsidiary be required to be pledged hereunder.

                  "Proceeds": all "proceeds" as such term is defined in Section
         9-102(a)(64) of the Uniform Commercial Code in effect in the State of
         New York on the date hereof and, in any event, including, without
         limitation, all dividends or other income from the Investment Property,
         collections thereon or distributions or payments with respect thereto.

                  "Receivable": any right to payment for goods sold, leased,
         licensed, assigned or otherwise disposed of, or for services rendered
         (except for any right to payment of any Grantor from Parent or any of
         its Subsidiaries), whether or not such right is evidenced by an
         Instrument or Chattel Paper and whether or not it has been earned by
         performance (including, without limitation, any Account).

                  "Secured Parties": the collective reference to the
         Administrative Agent, the Lenders and any Qualified Counterparties.

                  "Securities Act": the Securities Act of 1933, as amended.

                  "Trademarks": (i) all trademarks, trade names, corporate
         names, company names, business names, fictitious business names, trade
         styles, service marks, logos and other source or business identifiers,
         and all goodwill associated therewith, now existing or hereafter
         adopted or acquired, all registrations and recordings thereof, and all
         applications in connection therewith, whether in the United States
         Patent and Trademark Office or in any similar office or agency of the
         United States, any State thereof or any other country or any political
         subdivision thereof, or otherwise, and all common-law rights related

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         thereto, including, without limitation, any of the foregoing referred
         to in Schedule 6, and (ii) the right to obtain all renewals thereof.

                  "Trademark License": any agreement, whether written or oral,
         providing for the grant by or to any Grantor of any right to use any
         Trademark, including, without limitation, any of the foregoing referred
         to in Schedule 6.

                  "Vehicles": all cars, trucks, trailers, construction and earth
         moving equipment and other vehicles covered by a certificate of title
         law of any state and all tires and other appurtenances to any of the
         foregoing.

                  1.2      Other Definitional Provisions. The words
"hereof," "herein", "hereto" and "hereunder" and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section and Schedule references are
to this Agreement unless otherwise specified.

                  (a)      The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such terms.

                  (b)      Where the context requires, terms relating to the
Collateral or any part thereof, when used in relation to a Grantor, shall refer
to such Grantor's Collateral or the relevant part thereof.

                              SECTION 2. GUARANTEE

                  2.1      Guarantee. (a) (i) The Guarantors hereby, jointly and
severally, unconditionally and irrevocably, guarantee to the Administrative
Agent and the Secured Parties, for the ratable benefit of the Secured Parties
and their respective successors, indorsees, transferees and assigns, the prompt
and complete payment and performance by the Borrower when due (whether at stated
maturity, by acceleration or otherwise) of the Borrower Obligations (other than,
in the case of each Guarantor, Borrower Obligations arising pursuant to clause
(ii) of this Section 2.1(a) in respect of Guarantor Hedge Agreement Obligations
in respect of which such Guarantor is a primary obligor).

                  (ii)     The Borrower hereby unconditionally and irrevocably
guarantees to the Administrative Agent and the Secured Parties, for the ratable
benefit of the Secured Parties and their respective successors, endorsees,
transferees and assigns, the prompt and complete payment and performance by each
Guarantor when due (whether at stated maturity, by acceleration or otherwise) of
the Guarantor Hedge Agreement Obligations of such Guarantor.

                  (a)      Anything herein or in any other Loan Document to the
contrary notwithstanding, (i) the maximum liability of each Guarantor hereunder
and under the other Loan Documents shall in no event exceed the amount which can
be guaranteed by such Guarantor under applicable federal and state laws relating
to fraudulent conveyances or transfers or the insolvency of debtors (after
giving effect to the right of contribution established in Section 2.2) and (ii)
the maximum liability of the Borrower under this Section 2 shall in no event
exceed the amount which can be guaranteed by the Borrower under applicable
federal and state laws

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relating to fraudulent conveyances or transfers or the insolvency of debtors
(after giving effect to the right of contribution established in Section 2.2).

                  (b)      Each Guarantor agrees that the Borrower Obligations
may at any time and from time to time exceed the amount of the liability of such
Guarantor hereunder without impairing the guarantee of such Guarantor contained
in this Section 2 or affecting the rights and remedies of the Administrative
Agent or any Secured Party hereunder. The Borrower agrees that the Guarantor
Hedge Agreement Obligations may at any time and from time to time exceed the
amount of the liability of the Borrower under this Section 2 without impairing
the guarantee of the Borrower contained in this Section 2 or affecting the
rights and remedies of the Administrative Agent or any Secured Party hereunder.

                  (c)      Subject to Section 8.15 hereof, the guarantee
contained in this Section 2 shall remain in full force and effect until all the
Borrower Obligations (other than Borrower Obligations arising under Section
2.1(a)(ii) hereof) and the obligations of each Guarantor under the guarantee
contained in this Section 2 (other than Guarantor Obligations in respect of
Borrower Obligations arising under Section 2.1(a)(ii) hereof) shall have been
satisfied by full and final payment in cash, notwithstanding that from time to
time during the term of the Term Loan Agreement the Borrower may be free from
any Borrower Obligations and any or all of the Guarantors may be free from their
respective Guarantor Hedge Agreement Obligations.

                  (d)      No payment made by the Borrower, any of the
Guarantors, any other guarantor or any other Person or received or collected by
the Administrative Agent or any Secured Party from the Borrower, any of the
Guarantors, any other guarantor or any other Person by virtue of any action or
proceeding or any set-off or appropriation or application at any time or from
time to time in reduction of or in payment of the Borrower Obligations or the
Guarantor Hedge Agreement Obligations shall be deemed to modify, reduce, release
or otherwise affect the liability of the Borrower or any Guarantor under this
Section 2 which shall, notwithstanding any such payment (other than any payment
made by the Borrower or such Guarantor in respect of the Borrower Obligations or
the Guarantor Hedge Agreement Obligations or any payment received or collected
from the Borrower or such Guarantor in respect of the Borrower Obligations or
the Guarantor Hedge Agreement Obligations), remain liable for the Borrower
Obligations and the Guarantor Hedge Agreement Obligations up to the maximum
liability of the Borrower or such Guarantor hereunder until the Borrower
Obligations and the Guarantor Hedge Agreement Obligations are fully and finally
paid in cash.

                  2.2      Right of Contribution. Each Guarantor hereby agrees
that to the extent that a Guarantor shall have paid more than its proportionate
share of any payment made hereunder or the Guarantor Hedge Agreement
Obligations, such Guarantor shall be entitled to seek and receive contribution
from and against any other Guarantor hereunder which has not paid its
proportionate share of such payment. The Borrower and each Guarantor agrees that
to the extent that the Borrower or any Guarantor shall have paid more than its
proportionate share of any payment made hereunder in respect of any Guarantor
Hedge Agreement Obligation of any other Guarantor, the Borrower or such
Guarantor, as the case may be, shall be entitled to seek and receive
contribution from and against the Borrower and any other Guarantor which has not
paid its proportionate share of such payment. The Borrower's and each
Guarantor's right of contribution under this Section 2.2 shall be subject to the
terms and conditions of Section 2.3. The provisions of this Section 2.2 shall in
no respect limit the obligations and liabilities of the

                                       8

<PAGE>

Borrower or any Guarantor to the Administrative Agent and the Secured Parties,
and the Borrower and each Guarantor shall remain liable to the Administrative
Agent and the Secured Parties for the full amount guaranteed by the Borrower or
such Guarantor hereunder.

                  2.3      No Subrogation. Notwithstanding any payment made by
the Borrower or any Guarantor hereunder or any set-off or application of funds
of the Borrower or any Guarantor by the Administrative Agent or any Secured
Party, neither the Borrower nor any Guarantor shall be entitled to be subrogated
to any of the rights of the Administrative Agent or any Secured Party against
the Borrower or any other Guarantor or any collateral security or guarantee or
right of offset held by the Administrative Agent or any Secured Party for the
payment of the Borrower Obligations or the Guarantor Hedge Agreement
Obligations, nor shall the Borrower or any Guarantor seek or be entitled to seek
any contribution or reimbursement from the Borrower or any other Guarantor in
respect of payments made by the Borrower or such Guarantor hereunder, until all
amounts owing to the Administrative Agent and the Secured Parties by the
Borrower on account of the Borrower Obligations are fully and finally paid in
cash. If any amount shall be paid to the Borrower or any Guarantor on account of
such subrogation rights at any time when all of the Borrower Obligations shall
not have been fully and finally paid in cash, such amount shall be held by the
Borrower or such Guarantor in trust for the Administrative Agent and the Secured
Parties, segregated from other funds of the Borrower or such Guarantor, and
shall, forthwith upon receipt by the Borrower or such Guarantor, be turned over
to the Administrative Agent in the exact form received by the Borrower or such
Guarantor (duly indorsed by the Borrower or such Guarantor to the Administrative
Agent, if required), to be applied against the Borrower Obligations or the
Guarantor Hedge Agreement Obligations, whether matured or unmatured, in such
order as the Administrative Agent may determine.

                  2.4      Amendments, Etc. With Respect to the Borrower
Obligations. The Borrower and each Guarantor shall remain obligated hereunder
notwithstanding that, without any reservation of rights against the Borrower or
any Guarantor and without notice to or further assent by the Borrower or any
Guarantor, any demand for payment of any of the Borrower Obligations or
Guarantor Hedge Agreement Obligations made by the Administrative Agent or any
Secured Party may be rescinded by the Administrative Agent or such Secured Party
and any of the Borrower Obligations or Guarantor Hedge Agreement Obligations
continued, and the Borrower Obligations or Guarantor Hedge Agreement
Obligations, or the liability of any other Person upon or for any part thereof,
or any collateral security or guarantee therefor or right of offset with respect
thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by
the Administrative Agent or any Secured Party (with the consent of such of the
Borrower and the Guarantor as shall be required thereunder), and the Specified
Hedge Agreements, the Term Loan Agreement and the other Loan Documents and any
other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Administrative
Agent (or the Required Lenders or all Lenders, as the case may be) may (with the
consent of such of the Borrower and the Guarantor as shall be required
thereunder) deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Administrative Agent or any
Secured Party for the payment of the Borrower Obligations or Guarantor Hedge
Agreement Obligations may (with the consent of such of the Borrower and the
Guarantor as shall be required thereunder) be sold, exchanged, waived,
surrendered or released. Neither the Administrative Agent nor any Secured Party
shall, except to

                                       9

<PAGE>

the extent set forth in, and for the benefit of the parties to, the agreements
and instruments governing such Lien or guarantee, have any obligation to
protect, secure, perfect or insure any Lien at any time held by it as security
for the Borrower Obligations or Guarantor Hedge Agreement Obligations or for the
guarantees contained in this Section 2 or any property subject thereto.

                  2.5      Guarantee Absolute and Unconditional. (a) Each
Guarantor waives any and all notice of the creation, renewal, extension or
accrual of any of the Borrower Obligations (other than any notice with respect
to any Guarantor Hedge Agreement Obligation with respect to which such Guarantor
is a primary obligor and to which it is entitled pursuant to the applicable
Specified Hedge Agreement) and notice of or proof of reliance by the
Administrative Agent or any Secured Party upon the guarantee contained in this
Section 2 or acceptance of the guarantee contained in this Section 2; the
Borrower Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in
reliance upon the guarantee contained in this Section 2; and all dealings
between the Borrower and any of the Guarantors, on the one hand, and the
Administrative Agent and the Secured Parties, on the other hand, likewise shall
be conclusively presumed to have been had or consummated in reliance upon the
guarantee contained in this Section 2. Each Guarantor waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to
or upon the Borrower or any of the Guarantors with respect to the Borrower
Obligations (other than any diligence, presentment, protest, demand or notice
with respect to any Guarantor Hedge Agreement Obligation with respect to which
such Guarantor is a primary obligor and to which it is entitled pursuant to the
applicable Specified Hedge Agreement). Each Guarantor understands and agrees
that the guarantee of such Guarantor contained in this Section 2 shall be
construed as a continuing, absolute and unconditional guarantee of payment
without regard to (1) the validity or enforceability of the Term Loan Agreement
or any other Loan Document, any of the Borrower Obligations or any collateral
security therefor or guarantee or right of offset with respect thereto at any
time or from time to time held by the Administrative Agent or any Secured Party,
(2) any defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by the
Borrower or any other Person against the Administrative Agent or any Secured
Party, or (3) any other circumstance whatsoever (with or without notice to or
knowledge of the Borrower or such Guarantor) which constitutes, or might be
construed to constitute, an equitable or legal discharge of the Borrower for the
Borrower Obligations, or of such Guarantor under the guarantee of such Guarantor
contained in this Section 2, in bankruptcy or in any other instance. When making
any demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Guarantor, the Administrative Agent or any Secured Party may, but
shall be under no obligation to, make a similar demand on or otherwise pursue
such rights and remedies as it may have against the Borrower, any other
Guarantor or any other Person or against any collateral security or guarantee
for the Borrower Obligations or any right of offset with respect thereto, and
any failure by the Administrative Agent or any Secured Party to make any such
demand, to pursue such other rights or remedies or to collect any payments from
the Borrower, any other Guarantor or any other Person or to realize upon any
such collateral security or guarantee or to exercise any such right of offset,
or any release of the Borrower, any other Guarantor or any other Person or any
such collateral security, guarantee or right of offset, shall not relieve any
Guarantor of any obligation or liability under this Section 2, and shall not
impair or affect the rights and remedies, whether express, implied or available
as a matter of law, of the Administrative Agent or any Secured Party against any

                                       10

<PAGE>

Guarantor. For the purposes hereof "demand" shall include the commencement and
continuance of any legal proceedings.

                  (a)      The Borrower waives any and all notice of the
creation, renewal, extension or accrual of any of the Guarantor Hedge Agreement
Obligations and notice of or proof of reliance by the Administrative Agent or
any Secured Party upon the guarantee by the Borrower contained in this Section 2
or acceptance of the guarantee by the Borrower contained in this Section 2; the
Guarantor Hedge Agreement Obligations, and any of them, shall conclusively be
deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the guarantee by the Borrower contained in
this Section 2; and all dealings between the Borrower and any of the Guarantors,
on the one hand, and the Administrative Agent and the Secured Parties, on the
other hand, with respect to any Guarantor Hedge Agreement Obligation likewise
shall be conclusively presumed to have been had or consummated in reliance upon
the guarantee by the Borrower contained in this Section 2. The Borrower waives
diligence, presentment, protest, demand for payment and notice of default or
nonpayment to or upon the Borrower with respect to the Guarantor Hedge Agreement
Obligations. The Borrower understands and agrees that the guarantee by the
Borrower contained in this Section 2 shall be construed as a continuing,
absolute and unconditional guarantee of payment without regard to (1) the
validity or enforceability of the Guarantor Hedge Agreement Obligations or any
other collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Administrative Agent or any
Secured Party, (2) any defense, set-off or counterclaim (other than a defense of
payment or performance) which may at any time be available to or be asserted by
any Person against the Administrative Agent or any Secured Party, or (3) any
other circumstance whatsoever (with or without notice to or knowledge of the
Borrower or any Guarantor) which constitutes, or might be construed to
constitute, an equitable or legal discharge of the applicable Guarantor for the
applicable Guarantor Hedge Agreement Obligations, or of the Borrower under its
guarantee contained in this Section 2, in bankruptcy or in any other instance.
When making any demand under this Section 2 or otherwise pursuing its rights and
remedies under this Section 2 against the Borrower, the Administrative Agent or
any Secured Party may, but shall be under no obligation to, make a similar
demand on or otherwise pursue such rights and remedies as it may have against
any Guarantor or any other Person or against any collateral security or
guarantee for the Guarantor Hedge Agreement Obligations or any right of offset
with respect thereto, and any failure by the Administrative Agent or any Secured
Party to make any such demand, to pursue such other rights or remedies or to
collect any payments from any Guarantor or any other Person or to realize upon
any such collateral security or guarantee or to exercise any such right of
offset, or any release of any Guarantor or any other Person or any such
collateral security, guarantee or right of offset, shall not relieve the
Borrower of any obligation or liability under this Section 2, and shall not
impair or affect the rights and remedies, whether express, implied or available
as a matter of law, of the Administrative Agent or any Secured Party against the
Borrower under this Section 2. For the purposes hereof "demand" shall include
the commencement and continuance of any legal proceedings.

                  2.6      Reinstatement. The guarantee contained in this
Section 2 shall continue to be effective, or be reinstated, as the case may be,
if at any time payment, or any part thereof, of any of the Borrower Obligations
or Guarantor Hedge Agreement Obligations is rescinded or must otherwise be
restored or returned by the Administrative Agent or any Secured Party upon

                                       11

<PAGE>

the insolvency, bankruptcy, dissolution, liquidation or reorganization of the
Borrower or any Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the
Borrower or any Guarantor or any substantial part of its property, or otherwise,
all as though such payments had not been made.

                  2.7      Payments. The Borrower and each Guarantor hereby
guarantees that payments by it hereunder will be paid to the Administrative
Agent without set-off or counterclaim (i) in the case of obligations in respect
of Borrower Obligations arising under the Term Loan Agreement or any other Loan
Document, in Dollars at the Payment Office specified in the Term Loan Agreement,
and (ii) in the case of obligations in respect of any Borrower Hedge Agreement
Obligations or any Guarantor Hedge Agreement Obligations, in the currency and at
the place specified in the applicable Specified Hedge Agreement.

                     SECTION 3. GRANT OF SECURITY INTEREST

                  Each Grantor hereby assigns and transfers to the
Administrative Agent, and hereby grants to the Administrative Agent and the
Secured Parties, for the ratable benefit of the Secured Parties, a security
interest in, all of the following property now owned or at any time hereafter
acquired by such Grantor or in which such Grantor now has or at any time in the
future may acquire any right, title or interest (collectively, the
"Collateral"), as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of such Grantor's Obligations:

         (a)      all Accounts;

         (b)      all Chattel Paper;

         (c)      all Contracts;

         (d)      all Deposit Accounts;

         (e)      all Documents;

         (f)      all Equipment;

         (g)      all General Intangibles;

         (h)      all Instruments;

         (i)      all Intellectual Property;

         (j)      all Inventory;

         (k)      all Investment Property;

         (l)      all Letter of Credit Rights;

         (m)      all Vehicles;

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<PAGE>

         (n)      all Commercial Tort Claims described on Schedule 8 and on any
                  supplement thereto received by the Administrative Agent
                  pursuant to Section 5.10;

         (o)      all Goods and other property, whether tangible or intangible
                  and wherever located, not otherwise described above;

         (p)      all books and records pertaining to the Collateral; and

         (q)      to the extent not otherwise included, all Proceeds and
                  products of any and all of the foregoing, all Supporting
                  Obligations in respect of any of the foregoing and all
                  collateral security and guarantees given by any Person with
                  respect to any of the foregoing;

provided, that the Collateral shall not include the Excluded Assets; provided,
further, that if and when the prohibition which prevents the granting by such
Grantor to the Administrative Agent of a security interest in such Excluded
Asset is removed or otherwise terminated, the Administrative Agent will be
deemed to have, and at all times from and after the date hereof to have had, a
security interest in such Excluded Asset, as the case may be.

                   SECTION 4. REPRESENTATIONS AND WARRANTIES

                  To induce the Administrative Agent and the Lenders to enter
into the Term Loan Agreement and to induce the Lenders to make their respective
term loans to the Borrower thereunder, each Grantor, and with respect to Section
4.1, each Guarantor, hereby represents and warrants to the Administrative Agent
and each Lender that:

                  4.1      Representations in Term Loan Agreement. In the case
of each Guarantor, the representations and warranties set forth in Section 3 of
the Term Loan Agreement as they relate to such Guarantor or to the Loan
Documents to which such Guarantor is a party, each of which is hereby
incorporated herein by reference, are true and correct, and the Administrative
Agent and each Lender shall be entitled to rely on each of them as if they were
fully set forth herein, provided that each reference in each such representation
and warranty to the Borrower's knowledge shall, for the purposes of this Section
4.1, be deemed to be a reference to such Guarantor's knowledge.

                  4.2      Title; No Other Liens. Except for the security
interest granted to the Administrative Agent and the Secured Parties for the
ratable benefit of the Secured Parties pursuant to this Agreement and the other
Liens permitted to exist on the Collateral by the Term Loan Agreement, such
Grantor owns each item of the Collateral free and clear of any and all Liens or
claims of others. No financing statement or other public notice with respect to
all or any part of the Collateral is on file or of record in any public office,
except such as have been filed in favor of the Administrative Agent and the
Secured Parties, for the ratable benefit of the Secured Parties, pursuant to
this Agreement or as are permitted by the Term Loan Agreement.

                  4.3      Perfected First-Priority Liens. The security
interests granted pursuant to this Agreement (a) upon completion of the filings
and other actions specified on Schedule 3 (which, in the case of all UCC
financing statements and Mortgages referred to on said Schedule, have been
delivered to the Administrative Agent in completed and duly executed form) will

                                       13

<PAGE>

constitute valid perfected security interests in all of the Collateral in favor
of the Administrative Agent and the Secured Parties, for the ratable benefit of
the Secured Parties, as collateral security for such Grantor's Obligations,
enforceable in accordance with the terms hereof against all creditors of such
Grantor and any Persons purporting to purchase any Collateral from such Grantor
and (b) in respect of Collateral consisting of Capital Stock are prior to all
other Liens in existence on the date hereof, and (c) in respect of all other
Collateral are prior to all other Liens in existence on the date hereof except
for Permitted Liens.

                  4.4      Jurisdiction of Organization; Chief Executive Office.
On the date hereof, such Grantor's jurisdiction of organization, identification
number from the jurisdiction of organization (if any), and the location of such
Grantor's chief executive office or sole place of business or principal
residence, as the case may be, are specified on Schedule 4. Such Grantor has
furnished to the Administrative Agent a certified charter, certificate of
incorporation or other organization document and long-form good standing
certificate as of a date which is recent to the date hereof.

                  4.5      Inventory and Equipment. On the date hereof, the
Inventory and the Equipment (other than mobile goods) are kept in the counties
listed on Schedule 5.

                  4.6      Farm Products. None of the Collateral constitutes, or
is the Proceeds of, Farm Products.

                  4.7      Investment Property. The shares of Pledged Stock
pledged by such Grantor hereunder constitute all the issued and outstanding
shares of all classes of the Capital Stock of each Issuer owned by such Grantor
or, in the case of Foreign Subsidiary Voting Stock, if less, 65% of the
outstanding Foreign Subsidiary Voting Stock of each relevant Issuer.

                  (a)      All the shares of the Pledged Stock have been duly
and validly issued and are fully paid and nonassessable.

                  (b)      Each of the Pledged Notes constitutes the legal,
valid and binding obligation of the obligor with respect thereto, enforceable in
accordance with its terms, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors' rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.

                  (c)      Such Grantor is the record and beneficial owner of
the Investment Property pledged by it hereunder, free of any and all Liens or
options in favor of, or claims of, any other Person, except the security
interest created by this Agreement and Permitted Liens.

                  4.8      Receivables. No amount payable to such Grantor
under or in connection with any Receivable is evidenced by any Instrument or
Chattel Paper which has not been delivered to the Administrative Agent to the
extent required by Section 5.2.

                  (a)      None of the obligors on any Receivable is a
Governmental Authority, except for Receivables constituting not more than 5% of
the face amount of all Receivables.

                                       14

<PAGE>

                  (b)      The amounts represented by such Grantor to the
Secured Parties from time to time as owing to such Grantor in respect of the
Receivables will at such times be accurate.

                  4.9      Vehicles. The aggregate book value of all Vehicles
owned by all Grantors is less than $5,000,000.

                  4.10     Intellectual Property. Schedule 6 lists all
registered Intellectual Property owned by such Grantor in its own name on the
date hereof.

                  (a)      On the date hereof, all material Intellectual
Property of such Grantor described on Schedule 6 is valid, subsisting, unexpired
and enforceable, has not been abandoned and does not infringe the intellectual
property rights of any other Person.

                  (b)      Except as set forth in Schedule 6, on the date
hereof, none of the Intellectual Property is the subject of any licensing or
franchise agreement pursuant to which such Grantor is the licensor or
franchisor.

                  (c)      No holding, decision or judgment has been rendered by
any Governmental Authority which would limit, cancel or question the validity
of, or such Grantor's rights in, any Intellectual Property in any respect that
could reasonably be expected to have a Material Adverse Effect.

                  (d)      No action or proceeding is pending, or, to the
knowledge of such Grantor, threatened, on the date hereof (i) seeking to limit,
cancel or question the validity of any material Intellectual Property or such
Grantor's ownership interest therein, or (ii) which, could reasonably be
expected to have a material adverse effect on the value of any Intellectual
Property.

                  4.11     Contracts. Subject to 9407(b), 9408(b), 9409(b)
of the New York UCC, no consent of any party (other than such Grantor) to any
Contract is required, or purports to be required, in connection with the
execution, delivery and performance of this Agreement.

                  (a)      No amount payable to such Grantor under or in
connection with any Contract is evidenced by any Instrument or Chattel Paper
which, to the extent required to be delivered pursuant to Section 5.2 has not
been delivered to the Administrative Agent.

                              SECTION 5. COVENANTS

                  Each Grantor, and with respect to Sections 5.1, 5.7 and 5.11,
each Guarantor, covenants and agrees with the Administrative Agent and the
Secured Parties that, from and after the date of this Agreement until the
Obligations shall have been paid in full:

                  5.1      Covenants in Term Loan Agreement. In the case of each
Guarantor, such Guarantor shall take, or shall refrain from taking, as the case
may be, each action that is necessary to be taken or not taken, as the case may
be, so that no Default or Event of Default is caused by the failure to take such
action or to refrain from taking such action by such Guarantor or any of its
Subsidiaries.

                  5.2      Delivery of Instruments and Chattel Paper. If any
amount payable under or in connection with any of the Collateral shall be or
become evidenced by any Instrument,

                                       15

<PAGE>

Certificated Security or Chattel Paper, such Instrument, Certificated Security
or Chattel Paper shall be promptly delivered to the Administrative Agent, duly
indorsed in a manner satisfactory to the Administrative Agent, to be held as
Collateral pursuant to this Agreement; provided that the Grantors shall not be
obligated to deliver to the Administrative Agent any Instruments or Chattel
Paper held by any Grantor at any time to the extent that the aggregate face
amount of all such Instruments and Chattel Paper held by all Grantors at such
time does not exceed $10,000,000.

                  5.3      Maintenance of Insurance. Such Grantor will
maintain, with financially sound and reputable companies, insurance on all its
Property (including, without limitation, all Inventory, Equipment and Vehicles)
in at least such amounts and against at least such risks as are usually insured
against by businesses of similar size and character of such Grantor, including,
without limitation, (i) property insurance against loss by fire, explosion,
theft and such other casualties as may be reasonably satisfactory to the
Administrative Agent and (ii) insurance covering such Grantor, the
Administrative Agent and the Secured Parties against liability for personal
injury and property damage relating to such Property.

                  (a)      All such insurance shall (i) provide that no
cancellation, material reduction in amount or material change in coverage
thereof shall be effective until at least 30 days after receipt by the
Administrative Agent of written notice thereof, (ii) name the Administrative
Agent as an additional insured party under such liability insurance and loss
payee under such property insurance, (iii) if reasonably requested by the
Administrative Agent and to the extent obtainable on commercially reasonable
terms, include a breach of warranty clause and (iv) be reasonably satisfactory
in all other respects to the Administrative Agent.

                  (b)      The Borrower shall deliver to the Administrative
Agent and the Lenders a report of a reputable insurance broker with respect to
such insurance substantially concurrently with the delivery by the Borrower to
the Administrative Agent of its audited financial statements for each fiscal
year and such supplemental reports with respect thereto as the Administrative
Agent may from time to time reasonably request.

                  5.4      Maintenance of Perfected Security Interest; Further
Documentation. (a) Such Grantor shall maintain the security interest created by
this Agreement as a perfected security interest having at least the priority
described in Section 4.3 and shall defend such security interest against the
claims and demands of all Persons whomsoever.

                  (a)      Such Grantor will furnish to the Administrative Agent
and the Lenders from time to time statements and schedules further identifying
and describing the assets and property of such Grantor and such other reports in
connection with the Collateral as the Administrative Agent may reasonably
request, all in reasonable detail.

                  (b)      At any time and from time to time, upon the written
request of the Administrative Agent, and at the sole expense of such Grantor,
such Grantor will promptly and duly execute and deliver, and have recorded, such
further instruments and documents and take such further actions as the
Administrative Agent may reasonably request for the purpose of obtaining or
preserving the full benefits of this Agreement and of the rights and powers
herein granted, including, without limitation, (i) the filing of any financing
or continuation statements under the Uniform Commercial Code (or other similar
laws) in effect in any jurisdiction with

                                       16

<PAGE>

respect to the security interests created hereby and (ii) in the case of
Investment Property, Deposit Accounts and Letter of Credit Rights, taking any
actions necessary to enable the Administrative Agent to obtain "control" (within
the meaning of the applicable Uniform Commercial Code) with respect thereto.

                  5.5      Changes in Name, Etc. Such Grantor will not, except
upon 15 days' prior written notice to the Administrative Agent and delivery to
the Administrative Agent of all additional executed financing statements and
other documents reasonably requested by the Administrative Agent to maintain the
validity, perfection and priority of the security interests provided for herein:

                  (i)      change its jurisdiction of organization or the
         location of its chief executive office or sole place of business or
         principal residence from that referred to in Section 4.4; or

                  (ii)     change its name.

                  5.6      Notices. Such Grantor will advise the Administrative
Agent promptly, in reasonable detail, of any Lien (other than security interests
created hereby or Liens permitted under the Term Loan Agreement) on any of the
Collateral which would adversely affect the ability of the Administrative Agent
to exercise any of its remedies hereunder.

                  5.7      Investment Property. (a) If such Grantor shall become
entitled to receive or shall receive any certificate (including, without
limitation, any certificate representing a dividend or a distribution in
connection with any reclassification, increase or reduction of capital or any
certificate issued in connection with any reorganization), option or rights in
respect of the Capital Stock of any Issuer, whether in addition to, in
substitution of, as a conversion of, or in exchange for, any shares of the
Pledged Stock, or otherwise in respect thereof, such Grantor shall accept the
same as the agent of the Administrative Agent and the Secured Parties, hold the
same in trust for the Administrative Agent and the Secured Parties and deliver
the same forthwith to the Administrative Agent in the exact form received, duly
indorsed by such Grantor to the Administrative Agent, if required, together with
an undated stock power covering such certificate duly executed in blank by such
Grantor and with, if the Administrative Agent so requests, signature guaranteed,
to be held by the Administrative Agent, subject to the terms hereof, as
additional collateral security for the Obligations; provided, however, that any
such certificate that does not evidence securities issued by a Subsidiary of
Holdings may be held in a Securities Account included in the Collateral. Any
sums paid upon or in respect of the Investment Property upon the liquidation or
dissolution of any Issuer shall (i) unless such Issuer is a Subsidiary of
Holdings, be held or deposited in a Securities Account or a Deposit Account
included in the Collateral (until used or reinvested in the ordinary course of
business) or (ii) be paid over to the Administrative Agent to be held by it
hereunder as additional collateral security for the Obligations, and in case any
distribution of capital shall be made on or in respect of the Investment
Property, or any property shall be distributed upon or with respect to the
Investment Property pursuant to the recapitalization or reclassification of the
capital of any Issuer or pursuant to the reorganization thereof, the property so
distributed shall, unless otherwise subject to a perfected security interest in
favor of the Administrative Agent, be delivered to the Administrative Agent to
be held by it hereunder as additional collateral security for the Obligations.
If any sums of money or property so paid or distributed in respect of the
Investment

                                       17

<PAGE>

Property shall be received by such Grantor, such Grantor shall, until such money
or property is held or deposited in a Securities Account or Deposit Account (as
permitted under clause (i) above) or paid or delivered to the Administrative
Agent, hold such money or property in trust for the Secured Parties, segregated
from other funds of such Grantor, as additional collateral security for the
Obligations. Notwithstanding the foregoing, the Grantors shall not be required
to pay over to the Administrative Agent or deliver to the Administrative Agent
as Collateral any proceeds of any liquidation or dissolution of any Issuer, or
any distribution of capital or property in respect of any Investment Property,
to the extent that (i) such liquidation, dissolution or distribution, if treated
as a Disposition of the relevant Issuer, would be permitted by the Term Loan
Agreement and (ii) the proceeds thereof are applied toward prepayment of Term
Loans to the extent required by the Term Loan Agreement.

                  (a)      Without the prior written consent of the
Administrative Agent, such Grantor will not (i) vote to enable, or take any
other action to permit, any Issuer that is a Subsidiary of Holdings to issue any
stock or other equity securities of any nature or to issue any other securities
convertible into or granting the right to purchase or exchange for any stock or
other equity securities of any nature of any Issuer, unless such securities are
delivered to the Administrative Agent, concurrently with the issuance thereof,
to be held by the Administrative Agent as Collateral, (ii) sell, assign,
transfer, exchange, or otherwise dispose of, or grant any option with respect
to, the Investment Property or Proceeds thereof (except pursuant to a
transaction not prohibited by the Term Loan Agreement), or (iii) create, incur
or permit to exist any Lien or option in favor of, or any claim of any Person
with respect to, any of the Investment Property or Proceeds thereof, or any
interest therein, except for the security interests created by this Agreement
and except for Permitted Liens.

                  (b)      In the case of each Grantor and each Guarantor which
is an Issuer, such Issuer agrees that (i) it will be bound by the terms of this
Agreement relating to the Pledged Securities issued by it and will comply with
such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.7(a) with respect to the Pledged Securities issued by it
and (iii) the terms of Sections 6.3(c) and 6.7 shall apply to it, mutatis
mutandis, with respect to all actions that may be required of it pursuant to
Section 6.3(c) or 6.7 with respect to the Pledged Securities issued by it.

                  (c)      Each Subsidiary of Holdings that is a partnership or
a limited liability company and each Grantor (i) confirms that none of the terms
of any equity interest issued by such Issuer provides that such equity interest
is a "security" within the meaning of Sections 8-102 and 8-103 of the New York
UCC (a "Security"), (ii) agrees that it will, and cause such Issuer to, take no
action to cause or permit any such equity interest to become a Security, (iii)
agrees that it will not, and cause such Issuer to not, issue any certificate
representing any such equity interest and (iv) agrees that if, notwithstanding
the foregoing, any such equity interest shall be or become a Security, it will,
or cause such Issuer to, (and the Grantor that holds such equity interest hereby
instructs such Issuer to) comply with instructions originated by the
Administrative Agent without further consent by such Grantor.

                                       18

<PAGE>

                  5.8      Receivables. Other than in the ordinary course of
business consistent with its past practice, such Grantor will not (i) grant any
extension of the time of payment of any Receivable, (ii) compromise or settle
any Receivable for less than the full amount thereof, (iii) release, wholly or
partially, any Person liable for the payment of any Receivable, (iv) allow any
credit or discount whatsoever on any Receivable or (v) amend, supplement or
modify any Receivable in any manner that could adversely affect the value
thereof except to the extent that failure to comply with any or all of the
provisions of clauses (i) to (iv) (inclusive) of this Section 5.8 could not
reasonably be expected to have a Material Adverse Effect.

                  (a)      Such Grantor will deliver to the Administrative Agent
a copy of each material demand, notice or document received by it that questions
or calls into doubt the validity or enforceability of more than 5% of the
aggregate amount of the then outstanding Receivables.

                  5.9      Intellectual Property. Whenever such Grantor, either
by itself or through any agent, employee, licensee or designee, shall file an
application for the registration of any Intellectual Property with the United
States Patent and Trademark Office, the United States Copyright Office or any
similar office or agency in any other country or any political subdivision
thereof, such Grantor shall report such filing to the Administrative Agent
within five Business Days after the last day of the fiscal quarter in which such
filing occurs. Upon request of the Administrative Agent, such Grantor shall
execute and deliver, and have recorded, any and all agreements, instruments,
documents, and papers as the Administrative Agent may request to evidence the
Administrative Agent's and the Secured Parties' security interest in any
Copyright, Patent or Trademark and the goodwill and general intangibles of such
Grantor relating thereto or represented thereby.

                  5.10     Notice of Commercial Tort Claims. Such Grantor agrees
that, if it shall acquire any interest in any Commercial Tort Claim in excess of
$25,000,000 (whether from another Person or because such Commercial Tort Claim
shall have come into existence) and, if requested by the Administrative Agent,
(i) such Grantor shall, promptly upon such acquisition, deliver to the
Administrative Agent, in each case in form and substance reasonably satisfactory
to the Administrative Agent, a notice of the existence and nature of such
Commercial Tort Claim and deliver a supplement to Schedule 8 containing a
specific description of such Commercial Tort Claim, certified by such Grantor as
true, correct and complete, (ii) the provision of Section 3 shall apply to such
Commercial Tort Claim (and the Grantor authorizes the Administrative Agent to
supplement such schedule with a description of such Commercial Tort Claim if
such Grantor fails to deliver the supplement described in clause (i)) and (iii)
such Grantor shall execute and deliver to the Administrative Agent, in each case
in form and substance reasonably satisfactory to the Administrative Agent, any
certificate, agreement and other document, and take all other action, deemed by
the Administrative Agent to be reasonably necessary or appropriate for the
Administrative Agent to obtain, on behalf of the Secured Parties, a
first-priority, perfected security interest in all such Commercial Tort Claims.
Any supplement to Schedule 8 delivered pursuant to this Section 5.10 shall
become part of Schedule 8 for all purposes hereunder other than, absent a
written consent of the Administrative Agent, for purpose of the representations
and warranties set forth in Section 4.12.

                  5.11     Subordination. Any Indebtedness of the Borrower or
any of its Subsidiaries to Parent, Holdings or any of Parent's Subsidiaries
(other than Holdings, the

                                       19
<PAGE>

Borrower or any of the Borrower's Subsidiaries) shall be subordinated in right
of payment to the Obligations under the Loan Documents.

                  5.12     Collateral Account. The Borrower will maintain a
Collateral Account under the sole dominion and control of the Administrative
Agent for any cash or Cash Equivalents deposited therein pursuant to Section
6.16 of the Term Loan Agreement.

                         SECTION 6. REMEDIAL PROVISIONS

                  6.1      Certain Matters Relating to Receivables. The
Administrative Agent shall have the right, at any time after the occurrence and
during the continuance of an Event of Default, to make test verifications of the
Receivables in any manner and through any medium that it reasonably considers
advisable, and each Grantor shall furnish all such assistance and information as
the Administrative Agent may require in connection with such test verifications.
At any time and from time to time after the occurrence and during the
continuance of an Event of Default, upon the Administrative Agent's request and
at the expense of the relevant Grantor, such Grantor shall cause independent
public accountants or others satisfactory to the Administrative Agent to furnish
to the Administrative Agent reports showing reconciliations, aging and test
verifications of, and trial balances for, the Receivables.

                  (a)      The Administrative Agent hereby authorizes each
Grantor to collect such Grantor's Receivables, subject to the Administrative
Agent's direction and control after the occurrence and during the continuance of
an Event of Default, and the Administrative Agent may curtail or terminate said
authority at any time after the occurrence and during the continuance of an
Event of Default. If required by the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, any payments of
Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any
event, within two Business Days) deposited by such Grantor in the exact form
received, duly indorsed by such Grantor to the Administrative Agent if required,
in a Collateral Account maintained under the sole dominion and control of the
Administrative Agent, subject to withdrawal by the Administrative Agent for the
account of the Secured Parties only as provided in Section 6.5, and (ii) until
so turned over, shall be held by such Grantor in trust for the Administrative
Agent and the Secured Parties, segregated from other funds of such Grantor.

                  (b)      At the Administrative Agent's request, after the
occurrence of and during the continuance of an Event of Default, each Grantor
shall make available to the Administrative Agent all original and other
documents evidencing, and relating to, the agreements and transactions which
gave rise to the Receivables, including, without limitation, all original
orders, invoices and shipping receipts.

                  (c)      At any time after the occurrence and during the
continuance of an Event of Default, at the Administrative Agent's request each
Grantor will cooperate with the Administrative Agent to establish a system of
lockbox accounts, under the sole dominion and control of the Administrative
Agent, into which all Receivables shall be paid and from which all collected
funds will be transferred to a Collateral Account.

                  6.2      Communications with Obligors; Grantors Remain Liable.
The Administrative Agent in its own name or in the name of others may at any
time after the

                                       20

<PAGE>

occurrence and during the continuance of an Event of Default communicate with
obligors under the Receivables and parties to the Contracts to verify with them
to the Administrative Agent's satisfaction the existence, amount and terms of
any Receivables or Contracts.

                  (a)      Upon the request of the Administrative Agent at any
time after the occurrence and during the continuance of an Event of Default,
each Grantor shall notify obligors on the Receivables and parties to the
Contracts that the Receivables and the Contracts have been assigned to the
Administrative Agent and the Secured Parties for the ratable benefit of the
Lenders and that payments in respect thereof shall be made directly to the
Administrative Agent.

                  (b)      Anything herein to the contrary notwithstanding, each
Grantor shall remain liable under each of the Receivables (or any agreement
giving rise thereto) and Contracts to observe and perform all the conditions and
obligations to be observed and performed by it thereunder, all in accordance
with the terms of any agreement giving rise thereto. Neither the Administrative
Agent nor any Secured Party shall have any obligation or liability under any
Receivable (or any agreement giving rise thereto) or Contract by reason of or
arising out of this Agreement or the receipt by the Administrative Agent or any
Secured Party of any payment relating thereto, nor shall the Administrative
Agent or any Secured Party be obligated in any manner to perform any of the
obligations of any Grantor under or pursuant to any Receivable (or any agreement
giving rise thereto) or Contract, to make any payment, to make any inquiry as to
the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be entitled
at any time or times.

                  6.3      Pledged Stock. Unless an Event of Default shall
have occurred and be continuing and the Administrative Agent shall have given
notice to the relevant Grantor of the Administrative Agent's intent to exercise
its corresponding rights pursuant to Section 6.3(b), each Grantor shall be
permitted to receive all cash dividends paid in respect of the Pledged Stock and
all payments made in respect of the Pledged Notes, in each case to the extent
permitted in the Term Loan Agreement, and to exercise all voting and corporate
rights with respect to the Pledged Securities; provided, however, that no vote
shall be cast or corporate right exercised or other action taken which, would
materially impair the Collateral (except Dispositions permitted under the Term
Loan Agreement) or which would result in any violation of any provision of the
Term Loan Agreement, this Agreement or any other Loan Document.

                  (a)      If an Event of Default shall occur and be continuing
and the Administrative Agent shall give notice of its intent to exercise such
rights to the relevant Grantor or Grantors, (i) the Administrative Agent shall
have the right to receive any and all cash dividends, payments or other Proceeds
paid in respect of the Pledged Securities and make application thereof to the
Obligations in the order set forth in Section 6.5, and (ii) any or all of the
Pledged Securities shall be registered in the name of the Administrative Agent
or its nominee, and the Administrative Agent or its nominee may thereafter
exercise (x) all voting, corporate and other rights pertaining to such Pledged
Securities at any meeting of shareholders of the relevant Issuer or Issuers or
otherwise and (y) any and all rights of conversion, exchange and subscription
and any other rights, privileges or options pertaining to such Pledged
Securities as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the Pledged
Securities upon the merger, consolidation, reorganization, recapitalization

                                       21

<PAGE>

or other fundamental change in the corporate structure of any Issuer, or upon
the exercise by any Grantor or the Administrative Agent of any right, privilege
or option pertaining to such Pledged Securities, and in connection therewith,
the right to deposit and deliver any and all of the Pledged Securities with any
committee, depositary, transfer agent, registrar or other designated agency upon
such terms and conditions as the Administrative Agent may determine), all
without liability except to account for property actually received by it, but
the Administrative Agent shall have no duty to any Grantor to exercise any such
right, privilege or option and shall not be responsible for any failure to do so
or delay in so doing.

                  (b)      Each Grantor hereby authorizes and instructs each
Issuer of any Pledged Securities pledged by such Grantor hereunder to (i) comply
with any instruction received by it from the Administrative Agent in writing
that (x) states that an Event of Default has occurred and is continuing and (y)
is otherwise in accordance with the terms of this Agreement, without any other
or further instructions from such Grantor, and each Grantor agrees that each
Issuer shall be fully protected in so complying, and (ii) unless otherwise
expressly permitted hereby, pay any dividends or other payments with respect to
the Pledged Securities directly to the Administrative Agent.

                  6.4      Proceeds to be Turned Over To Administrative Agent.
In addition to the rights of the Administrative Agent and the Secured Parties
specified in Section 6.1 with respect to payments of Receivables, if an Event of
Default shall occur and be continuing and, if required by the Administrative
Agent, all Proceeds received by any Grantor consisting of cash, checks and
Instruments shall be held by such Grantor in trust for the Administrative Agent
and the Secured Parties, segregated from other funds of such Grantor, and shall,
forthwith upon receipt by such Grantor, be turned over to the Administrative
Agent in the exact form received by such Grantor (duly indorsed by such Grantor
to the Administrative Agent, if required). All Proceeds received by the
Administrative Agent hereunder shall be held by the Administrative Agent in a
Collateral Account maintained under its sole dominion and control. All Proceeds
while held by the Administrative Agent in a Collateral Account (or by such
Grantor in trust for the Administrative Agent and the Secured Parties) shall
continue to be held as collateral security for all the Obligations and shall not
constitute payment thereof until applied as provided in Section 6.5.

                  6.5      Application of Proceeds. If an Event of Default shall
have occurred and be continuing and the Lenders have elected to exercise
remedies in accordance with the terms of the Term Loan Agreement, at any time at
the Administrative Agent's election, the Administrative Agent may apply all or
any part of Proceeds constituting Collateral, whether or not held in any
Collateral Account, and any proceeds of the guarantee set forth in Section 2, in
payment of the Obligations in the following order:

                  First, to pay incurred and unpaid fees and expenses of the
         Administrative Agent under the Loan Documents;

                  Second, to the Administrative Agent, for application by it
         towards payment of amounts then due and owing and remaining unpaid in
         respect of the Obligations, pro rata among the Secured Parties
         according to the amounts of the Obligations then due and owing and
         remaining unpaid to the Secured Parties;

                                       22

<PAGE>

                  Third, to the Administrative Agent, for application by it
         towards prepayment of the Obligations, pro rata among the Secured
         Parties according to the amounts of the Obligations then held by the
         Secured Parties; and

                  Fourth, any balance of such Proceeds remaining after the
         Obligations shall have been paid in full shall be paid over to the
         Borrower or to whomsoever may be lawfully entitled to receive the same.

                  6.6      Code and Other Remedies. If an Event of Default shall
occur and be continuing, the Administrative Agent, on behalf of the Secured
Parties, may exercise, in addition to all other rights and remedies granted to
them in this Agreement and in any other instrument or agreement securing,
evidencing or relating to the Obligations, all rights and remedies of a secured
party under the New York UCC or any other applicable law. Without limiting the
generality of the foregoing, the Administrative Agent, without demand of
performance or other demand, presentment, protest, advertisement or notice of
any kind (except any notice required by law referred to below) to or upon any
Grantor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and/or may forthwith sell, lease, assign, give option or options
to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), in one or more parcels at
public or private sale or sales, at any exchange, broker's board or office of
the Administrative Agent or any Secured Party or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk.
The Administrative Agent or any Secured Party shall have the right upon any such
public sale or sales, and, to the extent permitted by law, upon any such private
sale or sales, to purchase the whole or any part of the Collateral so sold, free
of any right or equity of redemption in any Grantor, which right or equity is
hereby waived and released. Each Grantor further agrees, at the Administrative
Agent's request, to assemble the Collateral and make it available to the
Administrative Agent at places which the Administrative Agent shall reasonably
select, whether at such Grantor's premises or elsewhere. The Administrative
Agent shall apply the net proceeds of any action taken by it pursuant to this
Section 6.6 with respect to any Grantor's Collateral, after deducting all
reasonable costs and expenses of every kind incurred in connection therewith or
incidental to the care or safekeeping of any of the Collateral of such Grantor
or in any way relating to the Collateral of such Grantor or the rights of the
Administrative Agent and the Secured Parties hereunder with respect thereto,
including, without limitation, reasonable attorneys' fees and disbursements, to
the payment in whole or in part of the Obligations of such Grantor, in the order
specified in Section 6.5, and only after such application and after the payment
by the Administrative Agent of any other amount required by any provision of
law, including, without limitation, Section 9-615(a)(3) of the New York UCC,
need the Administrative Agent account for the surplus, if any, to any Grantor.
To the extent permitted by applicable law, each Grantor waives all claims,
damages and demands it may acquire against the Administrative Agent or any
Secured Party arising out of the exercise by them of any rights hereunder,
(except to the extent that such claims, damages and demands resulted from the
gross negligence or willful misconduct of the Administrative Agent or any
Secured Party). If any notice of a proposed sale or other disposition of
Collateral shall be required by law, such notice shall be deemed reasonable and
proper if given at least 10 days before such sale or other disposition.

                                       23

<PAGE>

                  6.7      Registration Rights. If the Administrative Agent
shall determine to exercise its right to sell any or all of the Pledged Stock
pursuant to Section 6.6, and if in the opinion of the Administrative Agent it is
necessary or advisable to have the Pledged Stock, or that portion thereof to be
sold, registered under the provisions of the Securities Act, with respect to any
Issuer that is a Subsidiary of Holdings, the relevant Grantor will cause the
Issuer thereof to (i) execute and deliver, and cause the directors and officers
of such Issuer to execute and deliver, all such instruments and documents, and
do or cause to be done all such other acts as may be, in the opinion of the
Administrative Agent, necessary or advisable to register the Pledged Stock, or
that portion thereof to be sold, under the provisions of the Securities Act,
(ii) use its best efforts to cause the registration statement relating thereto
to become effective and to remain effective for a period of one year from the
date of the first public offering of the Pledged Stock, or that portion thereof
to be sold, and (iii) make all amendments thereto and/or to the related
prospectus which, in the opinion of the Administrative Agent, are necessary or
advisable, all in conformity with the requirements of the Securities Act and the
rules and regulations of the Securities and Exchange Commission applicable
thereto. Each Grantor agrees to cause such Issuer to comply with the provisions
of the securities or "Blue Sky" laws of any and all jurisdictions which the
Administrative Agent shall designate and to make available to its security
holders, as soon as practicable, an earnings statement (which need not be
audited) which will satisfy the provisions of Section 11(a) of the Securities
Act.

                  (a)      Each Grantor recognizes that the Administrative Agent
may be unable to effect a public sale of any or all the Pledged Stock, by reason
of certain prohibitions contained in the Securities Act and applicable state
securities laws or otherwise, and may be compelled to resort to one or more
private sales thereof to a restricted group of purchasers which will be obliged
to agree, among other things, to acquire such securities for their own account
for investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner. The Administrative
Agent shall be under no obligation to delay a sale of any of the Pledged Stock
for the period of time necessary to permit the Issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state
securities laws, even if such Issuer would agree to do so.

                  (b)      Each Grantor agrees to use its best efforts to do or
cause to be done all such other acts as may be necessary to make such sale or
sales of all or any portion of the Pledged Stock pursuant to this Section 6.7
valid and binding and in compliance with any and all other applicable
Requirements of Law. Each Grantor further agrees that a breach of any of the
covenants contained in this Section 6.7 will cause irreparable injury to the
Administrative Agent and the Secured Parties, that the Administrative Agent and
the Secured Parties have no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section
6.7 shall be specifically enforceable against such Grantor, and such Grantor
hereby waives and agrees not to assert any defenses against an action for
specific performance of such covenants except for a defense that no Event of
Default has occurred under the Term Loan Agreement.

                                       24

<PAGE>

                  6.8      Deficiency. Each Grantor shall remain liable for any
deficiency if the proceeds of any sale or other disposition of the Collateral
are insufficient to pay its Obligations and the fees and disbursements of any
attorneys employed by the Administrative Agent or any Secured Party to collect
such deficiency.

                      SECTION 7. THE ADMINISTRATIVE AGENT

                  7.1      Administrative Agent's Appointment as
Attorney-in-Fact, etc. Each Grantor hereby irrevocably constitutes and appoints
the Administrative Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Grantor and in the name of
such Grantor or in its own name, for the purpose of carrying out the terms of
this Agreement, to take any and all appropriate action and to execute any and
all documents and instruments which may be necessary or desirable to carry out
any obligation imposed on such Grantor under this Agreement or to enable the
Administrative Agent or any Lender and any officer or agent thereof, to exercise
any of the rights, remedies, powers and authorities conferred on them under or
by this Agreement, and, without limiting the generality of the foregoing, each
Grantor hereby gives the Administrative Agent the power and right, on behalf of
such Grantor, without notice to or assent by such Grantor, to do any or all of
the following:

                  (i)      in the name of such Grantor or its own name, or
         otherwise, take possession of and indorse and collect any checks,
         drafts, notes, acceptances or other instruments for the payment of
         moneys due under any Receivable or Contract or with respect to any
         other Collateral and file any claim or take any other action or
         proceeding in any court of law or equity or otherwise deemed
         appropriate by the Administrative Agent for the purpose of collecting
         any and all such moneys due under any Receivable or Contract or with
         respect to any other Collateral whenever payable;

                  (ii)     in the case of any Intellectual Property, execute and
         deliver, and have recorded, any and all agreements, instruments,
         documents and papers as the Administrative Agent may request to
         evidence the Administrative Agent's and the Secured Parties' security
         interest in such Intellectual Property and the goodwill and general
         intangibles of such Grantor relating thereto or represented thereby;

                  (iii)    pay or discharge taxes and Liens levied or placed on
         or threatened against the Collateral, effect any repairs or any
         insurance called for by the terms of this Agreement and pay all or any
         part of the premiums therefor and the costs thereof;

                  (iv)     execute, in connection with any sale provided for in
         Section 6.6 or 6.7, any indorsements, assignments or other instruments
         of conveyance or transfer with respect to the Collateral; and

                  (v)      direct any party liable for any payment under any of
         the Collateral to make payment of any and all moneys due or to become
         due thereunder directly to the Administrative Agent or as the
         Administrative Agent shall direct; ask or demand for, collect, and
         receive payment of and receipt for, any and all moneys, claims and
         other amounts due or to become due at any time in respect of or arising
         out of any Collateral; sign and indorse any invoices, freight or
         express bills, bills of lading, storage or

                                       25

<PAGE>

         warehouse receipts, drafts against debtors, assignments, verifications,
         notices and other documents in connection with any of the Collateral;
         commence and prosecute any suits, actions or proceedings at law or in
         equity in any court of competent jurisdiction to collect the Collateral
         or any portion thereof and to enforce any other right in respect of any
         Collateral; defend any suit, action or proceeding brought against such
         Grantor with respect to any Collateral; settle, compromise or adjust
         any such suit, action or proceeding and, in connection therewith, give
         such discharges or releases as the Administrative Agent may deem
         appropriate; assign any Copyright, Patent or Trademark (along with the
         goodwill of the business to which any such Copyright, Patent or
         Trademark pertains), throughout the world for such term or terms, on
         such conditions, and in such manner, as the Administrative Agent shall
         in its sole discretion determine; and generally, sell, transfer,
         pledge and make any agreement with respect to or otherwise deal with
         any of the Collateral as fully and completely as though the
         Administrative Agent were the absolute owner thereof for all purposes,
         and do, at the Administrative Agent's option and such Grantor's
         expense, at any time, or from time to time, all acts and things which
         the Administrative Agent deems necessary to protect, preserve or
         realize upon the Collateral and the Administrative Agent's and the
         Secured Parties' security interests therein and to effect the intent
         of this Agreement, all as fully and effectively as such Grantor might
         do; and license or sublicense whether on an exclusive or non-exclusive
         basis, any Intellectual Property for such term and on such conditions
         and in such manner as the Administrative Agent shall in its sole
         judgment determine and, in connection therewith, such Grantor hereby
         grants to the Administrative Agent for the benefit of the Secured
         Parties a royalty-free, world-wide irrevocable license of its
         Intellectual Property.

                  Anything in this Section 7.1(a) to the contrary
notwithstanding, the Administrative Agent agrees that it will not exercise any
rights under the power of attorney provided for in this Section 7.1(a) unless an
Event of Default shall have occurred and be continuing.

                  (b)      If any Grantor fails to perform or comply with any of
its agreements contained herein, the Administrative Agent, at its option, but
without any obligation so to do, may perform or comply, or otherwise cause
performance or compliance, with such agreement.

                  (c)      The expenses of the Administrative Agent incurred in
connection with actions undertaken as provided in this Section 7.1, together
with interest thereon at a rate per annum equal to the rate per annum at which
interest would then be payable on past due Base Rate Loans under the Term Loan
Agreement, from the date of payment by the Administrative Agent to the date
reimbursed by the relevant Grantor, shall be payable by such Grantor to the
Administrative Agent on demand.

                  (d)      Each Grantor hereby ratifies all that said attorneys
shall lawfully do or cause to be done by virtue hereof. All powers,
authorizations and agencies contained in this Agreement are coupled with an
interest and are irrevocable until this Agreement is terminated and the security
interests created hereby are released.

                  7.2      Duty of Administrative Agent. The Administrative
Agent's sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession,

                                       26

<PAGE>

under Section 9-207 of the New York UCC or otherwise, shall be to deal with it
in the same manner as the Administrative Agent deals with similar property for
its own account. Neither the Administrative Agent, any Secured Party nor any of
their respective officers, directors, employees or agents shall be liable for
failure to demand, collect or realize upon any of the Collateral or for any
delay in doing so or shall be under any obligation to sell or otherwise dispose
of any Collateral upon the request of any Grantor or any other Person or to take
any other action whatsoever with regard to the Collateral or any part thereof.
The powers conferred on the Administrative Agent and the Secured Parties
hereunder are solely to protect the Administrative Agent's and the Secured
Parties' interests in the Collateral and shall not impose any duty upon the
Administrative Agent or any Secured Party to exercise any such powers. The
Administrative Agent and the Secured Parties shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers,
and neither they nor any of their officers, directors, employees or agents shall
be responsible to any Grantor for any act or failure to act hereunder, except
for their own gross negligence or willful misconduct.

                  7.3      Execution of Financing Statements. Pursuant to any
applicable law, each Grantor authorizes the Administrative Agent to file or
record financing statements and other filing or recording documents or
instruments with respect to the Collateral without the signature of such Grantor
in such form and in such offices as the Administrative Agent determines
appropriate to perfect the security interests of the Administrative Agent under
this Agreement. Each Grantor (other than the Bison Entities and each Grantor
that becomes a party hereto after the date hereof) authorizes the Administrative
Agent to use the collateral description "all assets" in any such financing
statements. Each of the Bison Entities and each Grantor that becomes a party
hereto after the date hereof authorizes the Administrative Agent to use the
collateral description "Oil and Gas Properties" in any such financing statements
(as well as a description of any other Collateral provided to the Lenders by
such Grantor pursuant to the terms hereof). Each Grantor hereby ratifies and
authorizes the filing by the Administrative Agent of any financing statement
with respect to the Collateral made prior to the date hereof.

                  7.4      Authority of Administrative Agent. Each Grantor
acknowledges that the rights and responsibilities of the Administrative Agent
under this Agreement with respect to any action taken by the Administrative
Agent or the exercise or non-exercise by the Administrative Agent of any option,
voting right, request, judgment or other right or remedy provided for herein or
resulting or arising out of this Agreement shall, as between the Administrative
Agent and the Secured Parties, be governed by the Term Loan Agreement and by
such other agreements with respect thereto as may exist from time to time among
them, but, as between the Administrative Agent and the Grantors, the
Administrative Agent shall be conclusively presumed to be acting as agent for
the Secured Parties with full and valid authority so to act or refrain from
acting, and no Grantor shall be under any obligation, or entitlement, to make
any inquiry respecting such authority. Notwithstanding any other provision
herein or in any Loan Document, the only duty or responsibility of the
Administrative Agent to any Qualified Counterparty under this Agreement is the
duty to remit to such Qualified Counterparty any amounts to which it is entitled
pursuant to Section 6.5.

                            SECTION 8. MISCELLANEOUS

                  8.1      Amendments in Writing. None of the terms or
provisions of this Agreement may be waived, amended, supplemented or otherwise
modified except in accordance

                                       27

<PAGE>

with Section 9.1 of the Term Loan Agreement. No consent of any Qualified
Counterparty shall be required for any waiver, amendment, supplement or other
modification to this Agreement.

                  8.2      Notices. All notices, requests and demands to or upon
the Administrative Agent, the Borrower or any Guarantor hereunder shall be
effected in the manner provided for in Section 9.2 of the Term Loan Agreement;
provided that any such notice, request or demand to or upon any Guarantor shall
be addressed to such Guarantor at its notice address set forth on Schedule 1.

                  8.3      No Waiver by Course of Conduct; Cumulative Remedies.
Neither the Administrative Agent nor any Secured Party shall by any act (except
by a written instrument pursuant to Section 8.1), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default. No failure to exercise, nor any
delay in exercising, on the part of the Administrative Agent or any Secured
Party, any right, power or privilege hereunder shall operate as a waiver
thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by the Administrative Agent or
any Secured Party of any right or remedy hereunder on any one occasion shall not
be construed as a bar to any right or remedy which the Administrative Agent or
such Secured Party would otherwise have on any future occasion. The rights and
remedies herein provided are cumulative, may be exercised singly or concurrently
and are not exclusive of any other rights or remedies provided by law.

                  8.4      Enforcement Expenses; Indemnification. The
Borrower and each Guarantor agree to pay, or reimburse each Secured Party and
the Administrative Agent for, all its costs and expenses incurred in collecting
against the Borrower or such Guarantor under the guarantee contained in Section
2 or otherwise enforcing any rights under this Agreement and the other Loan
Documents to which the Borrower or such Guarantor is a party, including, without
limitation, the fees and disbursements of outside counsel to each Secured Party
and of counsel to the Administrative Agent.

                  (a)      The Borrower and each Guarantor agree to pay, and to
save the Administrative Agent and the Secured Parties harmless from, any and all
liabilities with respect to, or resulting from any delay in paying, any and all
stamp, excise, sales or other taxes which may be payable or determined to be
payable with respect to any of the Collateral or in connection with any of the
transactions contemplated by this Agreement.

                  (b)      The Borrower and each Guarantor agree to pay, and to
save the Administrative Agent and the Secured Parties harmless from, any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever with respect
to the execution, delivery, enforcement, performance and administration of this
Agreement to the extent the Borrower would be required to do so pursuant to
Section 9.5 of the Term Loan Agreement.

                  (c)      The agreements in this Section shall survive
repayment of the Obligations and all other amounts payable under the Term Loan
Agreement and the other Loan Documents.

                                       28

<PAGE>

                  8.5      Successors and Assigns. This Agreement shall be
binding upon the successors and assigns of the Borrower and each Guarantor and
shall inure to the benefit of the Administrative Agent and the Secured Parties
and their successors and assigns; provided that except pursuant to mergers and
consolidations permitted under the Term Loan Agreement, neither the Borrower nor
any Guarantor may assign, transfer or delegate any of its rights or obligations
under this Agreement without the prior written consent of the Administrative
Agent.

                  8.6      Set-Off. The Borrower and each Guarantor hereby
irrevocably authorize the Administrative Agent and each Secured Party at any
time and from time to time upon the election of the Required Lenders following
the occurrence and during the continuance of an Event of Default, without notice
to the Borrower or such Guarantor or any other Guarantor, any such notice being
expressly waived by the Borrower and each Guarantor, to set-off and appropriate
and apply any and all deposits (general or special, time or demand, provisional
or final), in any currency, and any other credits, indebtedness or claims, in
any currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by the Administrative Agent or
such Secured Party to or for the credit or the account of the Borrower or such
Guarantor, or any part thereof in such amounts as the Administrative Agent or
such Secured Party may elect, against and on account of the obligations and
liabilities of the Borrower or such Guarantor to the Administrative Agent or
such Secured Party hereunder and claims of every nature and description of the
Administrative Agent or such Secured Party against the Borrower or such
Guarantor, in any currency, whether arising hereunder, under the Term Loan
Agreement, any other Loan Document or otherwise, as the Administrative Agent or
such Secured Party may elect, whether or not the Administrative Agent or any
Secured Party has made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured. The Administrative Agent
and each Secured Party shall notify the Borrower or such Guarantor promptly of
any such set-off and the application made by the Administrative Agent or such
Secured Party of the proceeds thereof; provided that the failure to give such
notice shall not affect the validity of such set-off and application. The rights
of the Administrative Agent and each Secured Party under this Section are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Administrative Agent or such Secured Party may
have.

                  8.7      Counterparts. This Agreement may be executed by one
or more of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

                  8.8      Severability. Any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

                  8.9      Section Headings. The Section headings used in this
Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation hereof.

                  8.10     Integration. This Agreement and the other Loan
Documents represent the agreement of the Borrower, the Guarantors, the
Administrative Agent and the Secured Parties

                                       29

<PAGE>

with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by the Administrative
Agent or any Secured Party relative to subject matter hereof and thereof not
expressly set forth or referred to herein or in the other Loan Documents.

                  8.11     GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

                  8.12     Submission To Jurisdiction; Waivers. The Borrower and
each Guarantor hereby irrevocably and unconditionally:

                  (a)      submits for itself and its property in any legal
action or proceeding relating to this Agreement and the other Loan Documents to
which it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the non-exclusive general jurisdiction of the Courts of the
State of New York, the courts of the United States of America for the Southern
District of New York, and appellate courts from any thereof;

                  (b)      consents that any such action or proceeding may be
brought in such courts and waives any objection that it may now or hereafter
have to the venue of any such action or proceeding in any such court or that
such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

                  (c)      agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to the
Borrower or such Guarantor at its address referred to in Section 8.2 or at such
other address of which the Administrative Agent shall have been notified
pursuant thereto;

                  (d)      agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law or shall limit
the right to sue in any other jurisdiction; and

                  (e)      waives, to the maximum extent not prohibited by law,
any right it may have to claim or recover in any legal action or proceeding
referred to in this Section any special, exemplary, punitive or consequential
damages.

                  8.13     Acknowledgements. The Borrower and each Guarantor
hereby acknowledges that:

                  (a)      it has been advised by counsel in the negotiation,
execution and delivery of this Agreement and the other Loan Documents to which
it is a party;

                  (b)      neither the Administrative Agent nor any Secured
Party has any fiduciary relationship with or duty to the Borrower or any
Guarantor arising out of or in connection with this Agreement or any of the
other Loan Documents, and the relationship between the Borrower and the
Guarantors, on the one hand, and the Administrative Agent and Secured Parties,
on the other hand, in connection herewith or therewith is solely that of debtor
and creditor; and

                                       30

<PAGE>

                  (c)      no joint venture is created hereby or by the other
Loan Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Secured Parties or among the Borrower, the Guarantors and the
Secured Parties.

                  8.14     Additional Guarantors and/or Grantors. Each
Subsidiary of the Borrower (other than an Excluded Foreign Subsidiary) created
or acquired after the Closing Date (which, for purposes of this paragraph, shall
include any Subsidiary that ceases to be an Excluded Foreign Subsidiary), by
Holdings, the Borrower or any of its Subsidiaries, shall become a Guarantor and
Grantor under this Agreement, by execution and delivery by such Subsidiary of an
Assumption Agreement in the form of Annex I hereto.

                  8.15     Releases. At such time as the Term Loans and the
other Obligations (other than Borrower Hedge Agreement Obligations and Guarantor
Hedge Agreement Obligations and contingent obligations under general
indemnification provisions as to which no claim is pending or reasonably
forseeable) shall have been paid in full, the Collateral shall be released from
the Liens created hereby, and this Agreement and all obligations (other than
those expressly stated to survive such termination) of the Administrative Agent
and each Grantor hereunder shall terminate, all without delivery of any
instrument or performance of any act by any party, and all rights to the
Collateral shall revert to the Grantors. At the request and sole expense of any
Grantor following any such termination, the Administrative Agent shall deliver
to such Grantor any Collateral held by the Administrative Agent hereunder, and
execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence such termination.

                  (a)      If any of the Collateral shall be sold, transferred
or otherwise disposed of by any Grantor in a transaction permitted by the Term
Loan Agreement, then the Administrative Agent, at the request and sole expense
of such Grantor, shall execute and deliver to such Grantor all releases or other
documents reasonably necessary or desirable for the release of the Liens created
hereby on such Collateral. At the request and sole expense of the Borrower, a
Subsidiary Guarantor shall be released from its obligations hereunder in the
event that all the Capital Stock of such Subsidiary Guarantor shall be sold,
transferred or otherwise disposed of in a transaction permitted by the Term Loan
Agreement; provided that the Borrower shall have delivered to the Administrative
Agent, at least ten Business Days (or such shorter period agreed to by the
Administrative Agent) prior to the date of the proposed release, a written
request for release identifying the relevant Subsidiary Guarantor and the terms
of the sale or other disposition in reasonable detail, including the price
thereof and any expenses in connection therewith, together with a certification
by the Borrower stating that such transaction is in compliance with the Term
Loan Agreement and the other Loan Documents.

                  No consent of any Qualified Counterparty shall be required for
any release of Collateral or Guarantors pursuant to this Section.

                  8.16     WAIVER OF JURY TRIAL. THE BORROWER AND EACH GUARANTOR
AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, EACH AGENT AND EACH SECURED PARTY,
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

                                       31

<PAGE>

                            [SIGNATURE PAGES FOLLOW]

                                       32

<PAGE>

                  IN WITNESS WHEREOF, each of the undersigned has caused this
Agreement to be duly executed and delivered as of the date first above written.

                                     WILLIAMS PRODUCTION HOLDINGS LLC

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

                                     WILLIAMS PRODUCTION RMT COMPANY

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

                                     BARRETT RESOURCES INTERNATIONAL
                                     CORPORATION

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

                                     BARGATH INC.

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

                                     BARRETT FUELS CORPORATION

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

                                     RULISON GAS COMPANY, LLC

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

<PAGE>

                                     BISON ROYALTY LLC

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

                                     PICEANCE PRODUCTION HOLDINGS, LLC

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

                                     RULISON PRODUCTION COMPANY LLC

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

<PAGE>

                                                                      Annex I to
                                              Guarantee and Collateral Agreement

                  ASSUMPTION AGREEMENT, dated as of ________________, 200__,
made by ______________________________, a ______________ corporation (the
"Additional Guarantor"), in favor of LEHMAN COMMERCIAL PAPER INC. ("LCPI"), as
administrative agent (in such capacity, the "Administrative Agent") for the
financial institutions (the "Lenders") party to the Term Loan Agreement referred
to below. All capitalized terms not defined herein shall have the meaning
ascribed to them in such Term Loan Agreement.

                              W I T N E S S E T H :

                  WHEREAS, Williams Production Holdings LLC ("Holdings"),
Williams Production RMT Company (the "Borrower"), the Lenders, Lehman Brothers
Inc. and Banc of America Securities LLC, as joint advisors, joint lead arrangers
and joint book runners, Citicorp USA, Inc. and JPMorgan Chase Bank, as
co-syndication agents, Bank of America, N.A., as documentation agent, and the
Administrative Agent, have entered into a Term Loan Agreement, dated as of May
30, 2003 (as amended, supplemented or otherwise modified from time to time, the
"Term Loan Agreement");

                  WHEREAS, in connection with the Term Loan Agreement, Holdings,
the Borrower and certain of its Subsidiaries (other than the Additional
Guarantor) have entered into a Guarantee and Collateral Agreement, dated as of
May 30, 2003 (as amended, supplemented or otherwise modified from time to time,
the "Guarantee and Collateral Agreement") in favor of the Administrative Agent
for the benefit of the Secured Parties;

                  WHEREAS, the Term Loan Agreement requires the Additional
Guarantor to become a party to the Guarantee and Collateral Agreement; and

                  WHEREAS, the Additional Guarantor has agreed to execute and
deliver this Assumption Agreement in order to become a party to the Guarantee
and Collateral Agreement;

                  NOW, THEREFORE, IT IS AGREED:

                  1.       Guarantee and Collateral Agreement. By executing and
delivering this Assumption Agreement, the Additional Guarantor, as provided in
Section 8.14 of the Guarantee and Collateral Agreement, hereby becomes a party
to the Guarantee and Collateral Agreement as a Guarantor and a Grantor
thereunder with the same force and effect as if originally named therein as a
Guarantor and a Grantor and, without limiting the generality of the foregoing,
hereby expressly assumes all obligations and liabilities of a Guarantor and a
Grantor thereunder. The information set forth in Annex 1-A hereto is hereby
added to the information set forth in Schedules _______* to the Guarantee and
Collateral Agreement. The Additional Guarantor hereby represents and warrants
that each of the representations and warranties contained in

--------------------
* Refer to each Schedule which needs to be supplemented.

<PAGE>

Section 4 of the Guarantee and Collateral Agreement is true and correct on and
as the date hereof (after giving effect to this Assumption Agreement) as if made
on and as of such date.

                  2.       GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

                  IN WITNESS WHEREOF, the undersigned has caused this Assumption
Agreement to be duly executed and delivered as of the date first above written.

                                                [ADDITIONAL GUARANTOR/GRANTOR]

                                                By: ____________________________
                                                     Name:
                                                     Title:

                                      I-2

<PAGE>

                                                                        Annex II
                                                                              to
                                              Guarantee and Collateral Agreement

                           ACKNOWLEDGEMENT AND CONSENT

         The undersigned hereby acknowledges receipt of a copy of the Guarantee
and Collateral Agreement, dated as of May 30, 2003 (the "Agreement"), made by
the Borrower and the Guarantors parties thereto for the benefit of LEHMAN
COMMERCIAL PAPER INC., as Administrative Agent (in such capacity, the
"Administrative Agent"). The undersigned agrees for the benefit of the
Administrative Agent and the Lenders as follows:

         1.       The undersigned will be bound by the terms of the Agreement
and will comply with such terms insofar as such terms are applicable to the
undersigned.

         2.       The undersigned will notify the Administrative Agent promptly
in writing of the occurrence of any of the events described in Section 5.7(a) of
the Agreement.

         3.       The terms of Sections 5.7, 6.3(c) and 6.7 of the Agreement
shall apply to it, mutatis mutandis, with respect to all actions that may be
required of it, or prohibited, pursuant to Section 5.7, 6.3(c) or 6.7 of the
Agreement.

                                            [NAME OF ISSUER]

                                            By: ________________________________
                                                 Name:
                                                 Title:

                                            Address for Notices:
                                            ____________________________________

                                            ____________________________________

                                            ____________________________________

                                            Fax: _______________________________<PAGE>

                                                                    EXHIBIT 10.3

                                                                  EXECUTION COPY

                                U.S. $800,000,000

                                CREDIT AGREEMENT

                            Dated as of June 6, 2003

                                      among

                          THE WILLIAMS COMPANIES, INC.
                         NORTHWEST PIPELINE CORPORATION
                   TRANSCONTINENTAL GAS PIPE LINE CORPORATION
                                  as Borrowers

                                 CITIBANK, N.A.

                  as Administrative Agent and Collateral Agent

                              BANK OF AMERICA, N.A.

                              as Syndication Agent

                               JPMORGAN CHASE BANK

                             as Documentation Agent

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

                                as Issuing Banks

                             THE BANKS NAMED HEREIN

                                    as Banks

                                       and

                          CITIGROUP GLOBAL MARKETS INC.
                         BANC OF AMERICA SECURITIES LLC

                  as Joint Lead Arrangers & Joint Book Runners

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                          Page
                                                                                                          ----
<S>                                                                                                       <C>
                                                ARTICLE I
                                    DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.1. Certain Defined Terms.....................................................................     2

SECTION 1.2. Computation of Time Periods...............................................................    12

SECTION 1.3. Accounting Terms..........................................................................    12

SECTION 1.4. Miscellaneous.............................................................................    12

                                               ARTICLE II

                AMOUNTS AND TERMS OF THE REVOLVING CREDIT ADVANCES AND LETTERS OF CREDIT

SECTION 2.1. Revolving Credit Advances and Letters of Credit...........................................    13

SECTION 2.2. Issuance of and Drawings and Reimbursement Under Letters of Credit........................    13

SECTION 2.3. Making the Revolving Credit Advances......................................................    17

SECTION 2.4. Voluntary Reduction of the Commitments....................................................    18

SECTION 2.5. Prepayments...............................................................................    19

SECTION 2.6. Increased Costs...........................................................................    19

SECTION 2.7. Payments and Computations.................................................................    20

SECTION 2.8. Taxes.....................................................................................    21

SECTION 2.9. Sharing of Payments, Etc..................................................................    24

SECTION 2.10. Evidence of Debt.........................................................................    24

SECTION 2.11. Fees.....................................................................................    25

SECTION 2.12. Repayment of Revolving Credit Advances...................................................    26

SECTION 2.13. Interest.................................................................................    26

SECTION 2.14. Interest Rate Determination..............................................................    27

SECTION 2.15. Optional Conversion of Revolving Credit Advances.........................................    27
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                        <C>
SECTION 2.16. Illegality...............................................................................    28

SECTION 2.17. Additional Interest on Eurodollar Rate Advances..........................................    28

SECTION 2.18. Existing Letters of Credit...............................................................    28

                                               ARTICLE III
                                               CONDITIONS

SECTION 3.1. Conditions Precedent to Effectiveness of Agreement........................................    29

SECTION 3.2. Conditions Precedent to a Revolving Credit Advance and an Issuance of a Letter of Credit..    30

                                               ARTICLE IV
                                     REPRESENTATIONS AND WARRANTIES

SECTION 4.1. Representations and Warranties of the Borrowers...........................................    32

                                                ARTICLE V
                                       COVENANTS OF THE BORROWERS

SECTION 5.1. Affirmative Covenants.....................................................................    34

SECTION 5.2. Negative Covenants........................................................................    36

                                               ARTICLE VI
                                            EVENTS OF DEFAULT

SECTION 6.1. Events of Default.........................................................................    37

                                               ARTICLE VII
                           THE AGENT; THE COLLATERAL AGENT; AND ISSUING BANKS

SECTION 7.1. Agent's and Collateral Agent's Authorization and Action...................................    39

SECTION 7.2. Agent's and Collateral Agent's Reliance, Etc..............................................    39

SECTION 7.3. Issuing Banks' Reliance, Etc..............................................................    40

SECTION 7.4. Rights....................................................................................    40

SECTION 7.5. Indemnification...........................................................................    41

SECTION 7.6. Successor Agent and Collateral Agent......................................................    42

SECTION 7.7. Bank Credit Decision......................................................................    42

SECTION 7.8. Certain Rights of the Collateral Agent....................................................    43
</TABLE>

                                     - ii -

<PAGE>

<TABLE>
<S>                                                                                                        <C>
SECTION 7.9. Other Agents..............................................................................    43

                                              ARTICLE VIII
                                              MISCELLANEOUS

SECTION 8.1. Amendments, Etc...........................................................................    43

SECTION 8.2. Notices, Etc..............................................................................    44

SECTION 8.3. No Waiver; Remedies.......................................................................    45

SECTION 8.4. Costs and Expenses........................................................................    46

SECTION 8.5. Binding Effect; Transfers.................................................................    47

SECTION 8.6. Governing Law.............................................................................    50

SECTION 8.7. Interest..................................................................................    51

SECTION 8.8. Execution in Counterparts.................................................................    51

SECTION 8.9. Survival of Agreements, Representations and Warranties, Etc...............................    51

SECTION 8.10. Confidentiality..........................................................................    51

SECTION 8.11. Waiver of Jury Trial.....................................................................    53

SECTION 8.12. Severability.............................................................................    53

SECTION 8.13. Forum Selection and Consent to Jurisdiction..............................................    53

SECTION 8.14. Nature of Obligations....................................................................    53
</TABLE>

                                    - iii -

<PAGE>

                             Schedules and Exhibits

<TABLE>
<S>                   <C>
Schedule I      -     Bank Information
Schedule II     -     Notice Information for the Borrowers
Schedule III    -     Commitments

Exhibit A       -     Opinion of James J. Bender, Esq., General Counsel of TWC
Exhibit B       -     Opinion of White & Case LLP, New York Counsel
Exhibit C       -     Form of Transfer Agreement
Exhibit D-1     -     Notice of Letter of Credit
Exhibit D-2     -     Notice of Revolving Credit Borrowing
Exhibit E       -     Form of Security Agreement
Exhibit F       -     Form of Note
</TABLE>

                                     - iv -

<PAGE>

                                CREDIT AGREEMENT

                  This Credit Agreement dated as of June 6, 2003 (as may be
further amended, modified, supplemented, renewed, extended or restated from time
to time, this "Agreement"), is by and among THE WILLIAMS COMPANIES, INC., a
Delaware corporation ("TWC"), NORTHWEST PIPELINE CORPORATION, a Delaware
corporation ("NWP"), TRANSCONTINENTAL GAS PIPE LINE CORPORATION, a Delaware
corporation ("TGPL", and together with TWC and NWP, the "Borrowers" and each, a
"Borrower"), the banks, financial institutions and other institutional lenders
listed on the signature pages hereof as banks (the "Banks"), CITIBANK, N.A.
("Citibank") and BANK OF AMERICA, N.A. ("BofA") (the "Issuing Banks" and each,
an "Issuing Bank"), CITIBANK, as agent (together with any successor agent
appointment pursuant to Article VII, the "Agent") and collateral agent (together
with any successor agent appointment pursuant to Article VII, the "Collateral
Agent"), BofA, as syndication agent, JPMORGAN CHASE BANK ("JPMorgan") as
documentation agent (the "Documentation Agent"), and CITIGROUP GLOBAL MARKETS
INC. ("CGMI") and BANC OF AMERICA SECURITIES LLC ("BAS", together with CGMI, the
"Co-Lead Arrangers"), as joint lead arrangers and joint book runners. In
consideration of the mutual covenants and agreements contained herein, the
Borrowers, the Banks, the Issuing Banks, the Agent, and the Co-Lead Arrangers
hereby agree as set forth herein.

                             PRELIMINARY STATEMENTS

                  WHEREAS, each of the Borrowers is a borrower under that
certain First Amended and Restated Credit Agreement dated as of October 31, 2002
(as amended, restated, supplemented or otherwise modified, the "Multiyear
Agreement") with the banks party thereto, JPMorgan and Commerzbank AG, as
co-syndication agents, Credit Lyonnais New York Branch, as documentation agent,
Citicorp USA, Inc. ("CUSA"), as agent, and CGMI (formerly known as Salmon Smith
Barney Inc. ("SSBI")), as arranger;

                  WHEREAS, TWC is the borrower under that certain Amended and
Restated Credit Agreement dated as of October 31, 2002 (as amended, restated,
supplemented or otherwise modified, the "LC Agreement"; and together with the
Multiyear Agreement, the "Existing Credit Documentation") with the banks party
thereto, CUSA, as agent and collateral agent, BofA, as syndication agent, and
CGMI (formally known as SSBI), as arranger;

                  WHEREAS, the Borrowers have requested that the Banks lend to
the Borrowers and the Issuing Banks issue Letters of Credit for the account of
the Borrowers to (a) refinance in full outstanding indebtedness under the
Existing Credit Documentation (it being understood that such letters of credit
shall be fully cash-collateralized) and (b) provide for the working capital
needs and general corporate purposes of the Borrowers, including, without
limitation, acquisition of the Borrowers' equity securities and debt; and

                  WHEREAS, the Issuing Banks and Banks are willing to lend such
amounts and to issue such Letters of Credit on the terms and subject to the
conditions hereinafter set forth (including Article III);

<PAGE>

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

                                   ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

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

                  "Agent" means Citibank, in its capacity as administrative
         agent pursuant to Article VII hereof and any successor Agent pursuant
         to Section 7.6.

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

                  "Applicable Margin" means, for any Eurodollar Rate Advance,
         0.75% per annum.

                  "Authorized Financial Officer" means the Chief Financial
         Officer, Chief Accounting Officer, and the Treasurer of any Person.

                  "Authorized Officer" means the President, Chief Executive
         Officer, Chief Financial Officer, the General Counsel, any Vice
         President, the Secretary, the Assistant Secretary, the Treasurer,
         Assistant Treasurer, or the Controller of a Person or any other officer
         designated as an "Authorized Officer" by the Board of Directors (or
         equivalent governing body) of such Person.

                  "Available Amount" of any Letter of Credit means, at any time,
         the maximum amount available to be drawn under such Letter of Credit at
         such time as set forth in Section 2.1(b) (assuming compliance at such
         time with all conditions to drawing).

                  "Banks" means the lenders listed on the signature pages hereof
         and each other Person that becomes a Bank pursuant to Section 8.5(a).

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

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

                  (b)      1/2 of 1% per annum above the Federal Funds Rate.

                  "Base Rate Advance" means a Revolving Credit Advance that
         bears interest as provided in Section 2.13(a)(i).

                  "BofA" has the meaning specified in the recitals hereto.

                  "Borrowers" has the meaning specified in the recitals hereto.

                                       2

<PAGE>

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

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

                  "CGMI" has the meaning specified in the recitals hereto.

                  "Change of Control Event" means the occurrence of any of the
         following: (i) any Person (other than a trustee or other fiduciary
         holding securities under an employee benefit plan of TWC or of any
         Subsidiary of TWC) or two or more Persons acting in concert (other than
         any group of employees of TWC or of any of its Subsidiaries) shall have
         acquired beneficial ownership (within the meaning of Rule l3d-3 of the
         Securities and Exchange Commission under the Securities Exchange Act of
         1934), directly or indirectly, of securities of TWC (or other
         securities convertible into such securities) representing 50% or more
         of the combined voting power of all securities of TWC entitled to vote
         in the election of directors, other than securities having such power
         only by reason of the happening of a contingency, or (ii) during any
         period of up to 24 consecutive months, commencing on or after the date
         of this Agreement, individuals who at the beginning of such period were
         directors of TWC or who were elected or nominated by individuals who at
         the beginning of such period were such directors or by individuals
         elected in accordance with this clause (ii) shall cease for any reason
         (other than as a result of death, incapacity or normal retirement) to
         constitute a majority of the board of directors of TWC.

                  "Citibank" has the meaning specified in the recitals hereto.

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

                  "Co-Lead Arrangers" has the meaning specified in the recitals
         hereto.

                  "Collateral" has the meaning specified in the Security
         Agreement.

                  "Collateral Account" has the meaning specified in the Security
         Agreement.

                  "Collateral Agent" means Citibank in its capacity as
         Collateral Agent pursuant to Article VII and any successor in such
         capacity pursuant to Section 7.6.

                  "Collateral Coverage Requirement" means any time that the
         aggregate mark-to-market value of all Collateral is equal to or greater
         than 105% of the Total Credit Exposure.

                  "Commitment" means a Revolving Credit Commitment or a Letter
         of Credit Commitment.

                                       3

<PAGE>

                  "Commitment Fee" has the meaning specified in Section 2.11(c).

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

                  "Consolidated Subsidiaries" of any Person means all other
         Persons the financial statements of which are consolidated with those
         of such Person in accordance with generally accepted accounting
         principles.

                  "Convert", "Conversion" and "Converted" each refers to a
         conversion of Revolving Credit Advances of one Type into Revolving
         Credit Advances of the other Type pursuant to Sections 2.15, 2.16 and
         2.17.

                  "Credit Documents" means this Agreement, the Security
         Agreement, the Letter of Credit Documents, each Letter of Credit, each
         Note, each Notice of Letter of Credit, each Notice of Revolving Credit
         Borrowing, and each certificate pursuant to Sections 3.2(ii),
         5.1(b)(ii), and 5.1(b)(iii) at any time executed and/or delivered to
         the Agent, the Collateral Agent, any Issuing Bank, or any Bank in
         connection therewith.

                  "Cross-Acceleration Event" means the occurrence or existence
         of any event or condition under any agreement or instrument relating to
         any Debt which is outstanding in a principal amount of at least
         $250,000,000 in the aggregate (excluding Debt incurred pursuant to any
         Letter of Credit or Revolving Credit Advance) of any Borrower the
         result of which is the acceleration of the final stated maturity of
         such Debt or any such Debt shall not be paid at its final stated
         maturity (giving effect to any applicable grace periods and any
         extensions thereof).

                  "CUSA" has the meaning specified in the recitals hereto.

                  "Debt" means, in the case of any Person, the principal or
         equivalent amount (without duplication) of (i) indebtedness of such
         Person for borrowed money, (ii) obligations of such Person evidenced by
         bonds, debentures or notes, (iii) obligations of such Person to pay the
         deferred purchase price of property or services (other than trade
         payables), (iv) obligations of such Person as lessee under leases that
         are, in accordance with generally accepted accounting principles,
         recorded as capital leases, and (v) obligations of such Person under
         guaranties in respect of, and obligations (contingent or otherwise) to
         purchase or otherwise acquire, or otherwise to assure a creditor
         against loss in respect of indebtedness or obligations of others of the
         kinds referred to in clauses (i) through (iv) of this definition.

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

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

                  "Documentation Agent" has the meaning specified in the
         recitals hereto.

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

                                       4

<PAGE>

                  "Domestic Lending Office" means, with respect to any Bank, the
         office of such Bank specified as its "Domestic Lending Office" opposite
         its name on Schedule I hereto or in the Transfer Agreement pursuant to
         which it became a Bank, or such other office of such Bank as such Bank
         may from time to time specify to the Borrowers and the Agent.

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

                  "Effective Date" has the meaning specified in Section 3.1.

                  "Eligible Assignee" means (i) any Bank, (ii) any affiliate of
         any Bank, and (iii) any other Person not covered by clause (i) or (ii)
         of this definition that is consented to by the Borrowers, the Agent and
         the Issuing Banks (which consents shall not be unreasonably withheld);
         provided that if any Event of Default has occurred and is continuing,
         no consent of the Borrowers shall be required; provided further that
         neither the Borrowers nor any affiliate of the Borrowers shall be an
         Eligible Assignee.

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

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

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

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

                  "Eurodollar Lending Office" means, with respect to any Bank,
         the office of such Bank specified as its "Eurodollar Lending Office"
         opposite its name on Schedule I hereto or in the Transfer Agreement
         pursuant to which it became a Bank (or, if no such office is specified,
         its Domestic Lending Office), or such other office of such Bank as such
         Bank may from time to time specify to the Borrowers and the Agent.

                  "Eurodollar Rate" means, for any Eurodollar Rate Advance
         comprising part of the same Revolving Credit Borrowing for any Interest
         Period therefor, the rate per annum (rounded upwards, if necessary, to
         the nearest 1/100 of 1%) appearing on Dow Jones Markets Page 3750 (or
         any successor page) as the London interbank offered rate for deposits
         in Dollars at approximately 11:00 a.m. (London time) two Business Days
         prior to the first day of such Interest Period for a term comparable to
         such Interest Period. If for any reason such rate is not available, the
         term "Eurodollar Rate" shall mean, for any Eurodollar Rate Advance
         comprising part of the same Revolving Credit Borrowing for

                                       5

<PAGE>

         any Interest Period therefor, the rate per annum (rounded upwards, if
         necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO
         Page as the London interbank offered rate for deposits in Dollars at
         approximately 11:00 a.m. (London time) two Business Days prior to the
         first day of such Interest Period for a term comparable to such
         Interest Period; provided, however, if more than one rate is specified
         on Reuters Screen LIBO Page, the applicable rate shall be the
         arithmetic mean of all such rates (rounded upwards, if necessary, to
         the nearest 1/100 of 1%).

                  "Eurodollar Rate Advance" means a Revolving Credit Advance
         that bears interest as provided in Section 2.13(a)(ii).

                  "Eurodollar Rate Reserve Percentage" of any Bank for any
         Interest Period for any Eurodollar Rate Advance means the reserve
         percentage applicable during such Interest Period (or if more than one
         such percentage shall be so applicable, the daily average of such
         percentages for those days in such Interest Period during which any
         such percentage shall be so applicable) under regulations issued from
         time to time by the Board of Governors of the Federal Reserve System
         (or any successor) for determining the maximum reserve requirement
         (including, without limitation, any emergency, supplemental or other
         marginal reserve requirement) for such Bank with respect to liabilities
         or assets consisting of or including Eurocurrency Liabilities having a
         term equal to such Interest Period.

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

                  "Existing Credit Documentation" has the meaning specified in
         the preliminary statements hereto.

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

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

                  "Financial Letter of Credit" means any Letter of Credit
         supporting only indebtedness for borrowed money.

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

                  "Fiscal Year" means any period of twelve consecutive calendar
         months ending on December 31; references to a Fiscal Year with a number
         corresponding to any calendar

                                       6

<PAGE>

         year (e.g., the "2002 Fiscal Year") refer to the Fiscal Year ending on
         December 31 of such calendar year.

                  "Fronting Fee" shall have the meaning specified in Section
         2.11(b)(i).

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

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

                  "Indemnified Parties" has the meaning assigned to such term in
         Section 8.4(b).

                  "Interest Period" means, for each Eurodollar Rate Advance
         comprising part of the same Revolving Credit Borrowing, the period
         commencing on the date of such Eurodollar Rate Advance or the date of
         the Conversion of any Base Rate Advance into such Eurodollar Rate
         Advance and ending on the last day of the period selected by a Borrower
         pursuant to the provisions below and, thereafter, with respect to
         Eurodollar Rate Advances, each subsequent period commencing on the last
         day of the immediately preceding Interest Period and ending on the last
         day of the period selected by a Borrower pursuant to the provisions
         below. The duration of each such Interest Period shall be one, two,
         three or six months, as a Borrower may, upon notice received by the
         Agent not later than 11:00 A.M. (New York City time) on the third
         Business Day prior to the first day of such Interest Period, select;
         provided, however, that:

                           (i)      a Borrower may not select any Interest
                  Period that ends after the Termination Date;

                           (ii)     Interest Periods commencing on the same date
                  for Eurodollar Rate Advances comprising part of the same
                  Revolving Credit Borrowing shall be of the same duration;

                           (iii)    whenever the last day of any Interest Period
                  would otherwise occur on a day other than a Business Day, the
                  last day of such Interest Period shall be extended to occur on
                  the next succeeding Business Day; provided, however, that, if
                  such extension would cause the last day of such Interest
                  Period to occur in the next following calendar month, the last
                  day of such Interest Period shall occur on the next preceding
                  Business Day; and

                           (iv)     whenever the first day of any Interest
                  Period occurs on a day of an initial calendar month for which
                  there is no numerically corresponding day in the calendar
                  month that succeeds such initial calendar month by the number
                  of

                                       7

<PAGE>

                  months equal to the number of months in such Interest Period,
                  such Interest Period shall end on the last Business Day of
                  such succeeding calendar month.

                  "Issuing Banks" has the meaning specified in the recitals
         hereto.

                  "JPMorgan" has the meaning specified in the recitals hereto.

                  "Judgment Event" means any judgment or order rendered against
         any Borrower for the payment of money in excess of $250,000,000 (and
         not adequately covered by insurance as to which a solvent and
         unaffiliated insurance company has provided coverage and has
         acknowledged liability) shall remain undischarged, unvacated, unbonded
         or unstayed for a period of 60 days.

                  "LC Agreement" has the meaning specified in the recitals
         hereto.

                  "LC Participation Percentage" of any Bank means, at any time,
         the percentage set opposite such Bank's name on Schedule III or as
         reflected for such Bank in the relevant Transfer Agreement to which it
         is a party, as such amount may be terminated, reduced or increased
         pursuant to Section 8.5(a).

                  "Lending Office" means, with respect to any Bank, the office
         of such Bank specified as its "Lending Office" opposite its name on
         Schedule I hereto or in the relevant Transfer Agreement delivered
         pursuant to Section 8.5(a), or such other office of such Bank as such
         Bank may from time to time specify to the Borrowers and the Agent.

                  "Letter of Credit Commitment" of any Issuing Bank means, at
         any time, the amount set opposite such Bank's name on Schedule III
         under the heading "Letter of Credit Commitments" or as reflected for
         such Bank in the relevant Transfer Agreement to which it is a party, as
         such amount may be terminated, reduced or increased pursuant to Section
         2.4, Section 6.1 or Section 8.5(a).

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

                  "Letter of Credit Fee" shall have the meaning specified in
         Section 2.11(b)(ii).

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

                                       8

<PAGE>

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

                  "Letters of Credit" has the meaning assigned to such term in
         Section 2.1(b).

                  "Majority Banks" means, at any time, Banks owed or holding
         more than 50% of the sum of (i) the aggregate unpaid principal amount
         of Revolving Credit Advances outstanding at such time, or if no such
         principal amount is then outstanding, the aggregate Revolving Credit
         Commitments and (ii) the aggregate Available Amount of all Letters of
         Credit outstanding at such time, or if no such Available Amount of
         Letters of Credit are then outstanding, then (x) the LC Participation
         Percentages, or (y) if the Letter of Credit Commitments have terminated
         and any Letter of Credit or any Letter of Credit Interest is
         outstanding, then the aggregate unpaid principal amount of the
         outstanding Letter of Credit Interests; provided that for purposes of
         this definition no Borrower shall be considered a "Bank".

                  "Mandatory Prepayment Event" means any of the following:
         Change of Control Event; Cross-Acceleration Event; or Judgment Event.

                  "Multiemployer Plan" means any multiemployer plan, as defined
         in Section 4001 (a)(3) of ERISA, which is maintained by (or to which
         there is an obligation to contribute of) the Borrowers or an ERISA
         Affiliate of the Borrowers.

                  "Note" means a promissory note of a Borrower payable to the
         order of any Bank, in substantially the form of Exhibit F hereto (as
         such note may be amended, endorsed or otherwise modified from time to
         time), delivered at the request of such Bank pursuant to Section 2.10
         or 8.6, together with any other note accepted from time to time in
         substitution or replacement therefore.

                  "Notice of Letter of Credit" has the meaning specified in
         Section 2.2(a).

                  "Notice of Revolving Credit Borrowing" has the meaning
         specified in Section 2.3(a).

                  "NWP" has the meaning specified in the recitals hereto.

                  "Obligations" means all Reimbursement Obligations and all
         other Debt, advances, debts, liabilities, obligations, indemnities,
         covenants and duties owing by any Borrower to any Bank, the Agent, the
         Collateral Agent, any Issuing Bank, or any other Person required to be
         indemnified under any Credit Document, of any kind or nature, present
         or future, whether or not evidenced by any Note, guaranty or other
         instrument, arising under or in connection with this Agreement or any
         other Credit Document or any of the

                                       9

<PAGE>

         transactions evidenced by this Agreement or any other Credit Document,
         whether or not for the payment of money, whether arising by reason of
         an extension of credit, loan, guaranty, indemnification or in any other
         manner, whether direct or indirect (including those acquired by
         assignment), absolute or contingent, due or to become due, now existing
         or hereafter arising and however acquired. The term "Obligations"
         includes all interest, charges, expenses, fees, attorneys' fees and
         disbursements and any other sum chargeable to any Borrower under this
         Agreement or any other Credit Document.

                  "PBGC" means the Pension Benefit Guaranty Corporation.

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

                  "Plan" means an employee pension benefit plan (other than a
         Multiemployer Plan) as defined in Section 3(2) of ERISA currently
         maintained by, or in the event such plan has terminated, to which
         contributions have been made or an obligation to make such
         contributions has accrued during any of the five plan years preceding
         the date of the termination of such plan by, the Borrowers or any ERISA
         Affiliate of the Borrowers for employees of the Borrowers or any such
         ERISA Affiliate and covered by Title IV of ERISA or subject to the
         minimum funding standards under Section 412 of the Code.

                  "Public Filings" means the Borrowers' (i) annual report on
         Form 10-K/A for the year ended December 31, 2002, (ii) quarterly report
         on Form 10-Q for the quarter ended March 31, 2003, and (iii) each other
         quarterly and annual and other reports filed with the SEC from time to
         time.

                  "Register" has the meaning specified in Section 8.5(c).

                  "Regulation U" means Regulation U of the Board of Governors of
         the Federal Reserve System, as in effect from time to time.

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

                  "Revolving Credit Advance" means an advance by a Bank to a
         Borrower as part of a Revolving Credit Borrowing and refers to a Base
         Rate Advance or a Eurodollar Rate Advance (each of which shall be a
         "Type" of Revolving Credit Advance).

                  "Revolving Credit Borrowing" means a borrowing consisting of
         simultaneous Revolving Credit Advances of the same Type made by each of
         the Banks, pursuant to Section 2.1(a).

                  "Revolving Credit Commitment" means, with respect to any Bank
         at any time, the amount set forth opposite such Banks' name on Schedule
         III hereto under the caption "Revolving Credit Commitment" or, if such
         Bank has entered into one or more Transfer

                                       10

<PAGE>

         Agreements, set forth for such Bank in the Register maintained by the
         Agent pursuant to Section 8.5(c) as such Lender's "Revolving Credit
         Commitment", as such amount may be reduced at or prior to such time
         pursuant to Section 2.4.

                  "Security Agreement" means a Security Agreement executed by
         TWC in substantially the form of Exhibit E.

                  "SPC" has the meaning specified in Section 8.5(g).

                  "Subsidiary" of any Person means any corporation, partnership,
         joint venture or other entity of which more than 50% of the outstanding
         Equity Interests having ordinary voting power to elect a majority of
         the board of directors of such corporation, partnership, joint venture
         or other entity or others performing similar functions (irrespective of
         whether or not at the time Equity Interests of any other class or
         classes of such corporation, partnership, joint venture or other entity
         shall or might have voting power upon the occurrence of any
         contingency) is at the time directly or indirectly owned by such
         Person.

                  "Termination Date" means the earlier of (i) June 6, 2005 or
         (ii) the date of termination in whole of the Commitments pursuant to
         Section 2.4 or 6.1.

                  "Termination Event" means (i) a "reportable event", as such
         term is described in Section 4043(c) of ERISA (other than a "reportable
         event" not subject to the provision for 30-day notice to the PBGC or a
         "reportable event" as such term is described in Section 4043(c)(3) of
         ERISA) which might reasonably be expected to result in a termination
         of, or the appointment of a trustee to administer, a Plan, or which
         causes TWC, due to actions of the PBGC, to be required to contribute at
         least $75,000,000 in excess of the contributions which otherwise would
         have been made to fund a Plan based upon the contributions recommended
         by such Plan's actuary, or (ii) the withdrawal of a Borrower or any
         ERISA Affiliate of such Borrower from a Multiple Employer Plan during a
         plan year in which it was a "substantial employer," as such term is
         defined in Section 4001(a)(2) of ERISA, or the incurrence of liability
         by a Borrower or any ERISA Affiliate of such Borrower under Section
         4064 of ERISA upon the termination of a Plan or Multiple Employer Plan,
         or (iii) the distribution of a notice of intent to terminate a Plan
         pursuant to Section 4041(a)(2) of ERISA or the treatment of a Plan
         amendment as a termination under Section 4041 of ERISA, or (iv) the
         institution of proceedings to terminate a Plan by the PBGC under
         Section 4042 of ERISA, or (v) any other event or condition which might
         reasonably be expected to result in the termination of, or the
         appointment of, a trustee to administer, any Plan under Section 4042 of
         ERISA.

                  "TGPL" has the meaning specified in the recitals hereto.

                  "Total Credit Exposure" means the sum of the Total L/C
         Exposure plus the Total Loan Exposure plus the amount of any other
         Obligations that are not paid when due and remain outstanding.

                  "Total L/C Exposure" means at any time, the aggregate amount
         of all Letter of Credit Liabilities with respect to all issued Letters
         of Credit.

                                       11

<PAGE>

                  "Total Loan Exposure" means at any time, the aggregate
         principal amount of all outstanding Revolving Credit Advances.

                  "Transfer Agreement" means an agreement executed pursuant to
         Section 8.5 by an assignor Bank and assignee Bank substantially in the
         form of Exhibit C, which agreement shall be executed by the Borrowers
         and the Agent to evidence the consent of each if such consent is
         required pursuant to the definition herein of "Eligible Assignee" or
         the terms of Section 8.5.

                  "TWC" has the meaning specified in the recitals hereto.

                  "Unused Revolving Credit Commitment" with respect to each Bank
         at any time, (a) such Bank's Revolving Credit Commitment at such time
         minus (b) the sum of (i) the aggregate principal amount of all
         Revolving Credit Advances made by such Bank and outstanding at such
         time and (ii) such Bank's Letter of Credit Liability.

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

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

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

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

                  SECTION 1.4. Miscellaneous. The words "hereof", "herein" and
"hereunder" and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement, and Article, Section, Schedule and Exhibit references are to Articles
and Sections of and Schedules and Exhibits to this Agreement, unless otherwise
specified. The term "including" shall mean "including, without limitation".
References to any document, instrument or agreement (a) shall include all
exhibits, schedules and other attachments thereto, (b) shall include all
documents, instruments or agreements issued or executed in replacement thereof
and (c) shall mean such document, instrument or agreement, or replacement or
predecessor thereto, as amended, modified and supplemented from time to time and
in effect at any given time so long as such amended, modified or supplemented
document, instrument or agreement does not violate the terms of this Agreement.

                                       12

<PAGE>

                                   ARTICLE II

                    AMOUNTS AND TERMS OF THE REVOLVING CREDIT
                         ADVANCES AND LETTERS OF CREDIT

                  SECTION 2.1. Revolving Credit Advances and Letters of Credit.

                  (a)      Revolving Credit Advances. Each Bank severally
agrees, on the terms and conditions hereinafter set forth, to make Revolving
Credit Advances to each Borrower from time to time on any Business Day during
the period from the Effective Date until the Termination Date in an aggregate
amount to all Borrowers not to exceed at any time such Bank's Unused Revolving
Credit Commitment at such time. Each Revolving Credit Borrowing shall be in an
aggregate amount of not less than $10,000,000 or an integral multiple of
$1,000,000 in excess thereof and shall consist of Revolving Credit Advances made
on the same day by the Banks ratably according to their respective Revolving
Credit Commitments. Within the limits of this Section 2.1(a), a Borrower may
borrow under this Section 2.1(a), prepay pursuant to Section 2.5 and reborrow
under this Section 2.1(a).

                  (b)      Letters of Credit. Each Issuing Bank agrees, on the
terms and conditions hereinafter set forth, to issue standby or trade letters of
credit (collectively, the "Letters of Credit", and each a "Letter of Credit")
for the account of any Borrower (such issuance, and any funding of a draw
thereunder, to be made by the Issuing Banks in reliance on the agreements of the
other Banks pursuant to Section 2.2) from time to time on any Business Day
during the period from the Effective Date until 30 days prior to the Termination
Date in an aggregate Available Amount (i) for all Letters of Credit issued by
the Issuing Banks not to exceed at any time the lesser of (A) the aggregate of
all Letter of Credit Commitments at such time and (B) the Letter of Credit
Commitment of such Issuing Bank at such time and (ii) for each such Letter of
Credit not to exceed an amount equal to the Unused Revolving Credit Commitments
of the Banks at such time; provided that at no time shall all Letter of Credit
Liabilities exceed the aggregate amount of the Letter of Credit Commitments. No
Letter of Credit shall have an expiration date (including all rights of a
Borrower or the beneficiary to require renewals) later then 10 Business Days
prior to the Termination Date. Within the limits referred to above, a Borrower
may request the issuance of Letters of Credit under this Section 2.1(b), repay
any Letter of Credit Liability resulting from drawings thereunder pursuant to
Section 2.2(a) and request the issuance of additional Letters of Credit under
this Section 2.1(b).

                  SECTION 2.2. Issuance of and Drawings and Reimbursement Under
Letters of Credit.

                  (a)      Notice of Issuance. A Borrower shall give the Agent
and the Issuing Bank from which it is requesting a Letter of Credit at least
three Business Days' (or such shorter period as agreed to by the Agent and such
Issuing Bank) prior notice, in the form of Exhibit D-1 (a "Notice of Letter of
Credit"), specifying the Business Day such Letter of Credit is to be issued and
the account party or parties therefor and describing in reasonable detail the
proposed terms of such Letter of Credit (including the beneficiary thereof) and
the nature of the transactions or obligations proposed to be supported thereby.

                                       13

<PAGE>

                  (b)      Participations in Letters of Credit. On each day
during the period commencing with the issuance by any Issuing Bank of any Letter
of Credit and until such Letter of Credit shall have expired or been terminated,
the Letter of Credit Commitment of each Issuing Bank shall be deemed to be
utilized for all purposes of this Agreement in an amount equal to the Available
Amount of such Letter of Credit. Each Bank agrees that, upon the issuance of any
Letter of Credit hereunder by any Issuing Bank, it shall automatically acquire a
participation in such Issuing Bank's liability under such Letter of Credit in an
amount equal to such Bank's LC Participation Percentage of such liability, and
each Bank thereby shall absolutely, unconditionally and irrevocably assume, as
primary obligor and not as surety, and shall be unconditionally obligated to
such Issuing Bank to the extent provided in this Section 2.2(b).

                  (c)      Reimbursement Obligations; Notice of Drawings. Upon
receipt from the beneficiary of any Letter of Credit of any demand for payment
under such Letter of Credit, the Issuing Bank that issued such Letter of Credit
shall promptly notify the applicable Borrower (through the Agent) of the amount
to be paid by such Issuing Bank as a result of such demand and the date on which
payment is to be made by such Issuing Bank to such beneficiary in respect of
such demand, which shall be (unless same day payment is required by the terms of
such Letter of Credit pursuant to a request of such Borrower) at least one
Business Day after the date on which the Agent shall deliver such notice to the
applicable Borrower pursuant to this sentence. Notwithstanding the identity of
the account party of any Letter of Credit, the Borrowers hereby unconditionally
agree to pay and reimburse the Agent for the account of the Issuing Bank that
issued a Letter of Credit for the amount of each demand for payment under such
Letter of Credit that is in substantial compliance with the provisions of such
Letter of Credit at or prior to the date on which payment is to be made by such
Issuing Bank to the beneficiary thereunder, without presentment, demand, protest
or other formalities of any kind, together with interest thereon at a rate per
annum equal to the Base Rate for the period from the date of such demand until
the date of such reimbursement; provided that, to the extent that any
Reimbursement Obligation has not been reimbursed by any Borrower to the
applicable Issuing Bank hereunder, the Collateral Agent shall withdraw funds
from the Collateral Account upon the request (such request to be delivered to
the Collateral Agent by TWC on the same day of the receipt of notice from the
Agent to the Borrowers pursuant to this Section 2.2(c)) of TWC (in accordance
with the Security Agreement), in an amount of such outstanding Reimbursement
Obligation and apply such funds for the satisfaction and reimbursement of such
Issuing Bank. The Borrowers' obligations to reimburse each Issuing Bank as
provided herein shall be absolute, unconditional and irrevocable under all
circumstances whatsoever, including the following circumstances: (i) any lack of
validity of this Agreement, the other Credit Documents or the other documents to
be delivered under this Agreement; (ii) the existence of any claim, set-off,
defense or other right that a Borrower may have at any time against the Agent,
any Bank, any Issuing Bank or any other Person, whether in connection with the
transactions contemplated by this Agreement or any unrelated transaction; (iii)
any action or inaction taken or suffered by any Issuing Bank under a Letter of
Credit if taken in good faith and in conformity with applicable law; (iv) the
payment by any Issuing Bank under a Letter of Credit against presentation of a
demand, statement or other document which in the sole discretion of such Issuing
Bank substantially complies with the terms of such Letter of Credit, including
any demand, statement or other document which is forged, fraudulent, invalid or
inaccurate in any respect; (v) any exchange, release or non-perfection of any
collateral for, or any release or amendment or waiver of or consent to departure
from any guarantee of, all or any of the Obligations of the applicable Borrower
in respect of any Letter of

                                       14

<PAGE>

Credit; and (vi) any determination of invalidity or unenforceability with
respect to any Letter of Credit after payment by an Issuing Bank thereunder.

                  (d)      Payments by Banks to Issuing Banks. To the extent
that a Borrower fails to make any payment to an Issuing Bank that such Borrower
is required to make pursuant to Section 2.2(c), each Bank (other than such
Issuing Bank) shall pay to the Agent, for the account of such Issuing Bank in
Dollars and in immediately available funds, the amount of such Bank's LC
Participation Percentage of any payment under a Letter of Credit upon notice by
such Issuing Bank (through the Agent) to such Bank requesting such payment and
specifying such amount. Each such Bank's obligation to make such payment to the
Agent for the account of such Issuing Bank under this Section 2.2(d), and such
Issuing Bank's right to receive the same, shall be absolute and unconditional
and shall not be affected by any circumstance whatsoever other than the gross
negligence or willful misconduct of such Issuing Bank in making payment under
such Letter of Credit, including the failure of any other Bank to make its
payment under this Section 2.2(d), the financial condition of a Borrower (or any
account party in respect of such Letter of Credit), the existence of any Event
of Default or the termination of the Letter of Credit Commitments. If any Bank
shall default in its obligation to make any such payment to the Agent for the
account of an Issuing Bank, for so long as such default shall continue the Agent
may, at the request of such Issuing Bank withhold from any payments received by
the Agent under this Agreement for the account of such Bank the amount so in
default and, to the extent so withheld and pay the same to such Issuing Bank for
application to such defaulted obligation.

                  (e)      Participations in Reimbursement Obligations. Upon the
making of each payment by a Bank to an Issuing Bank pursuant to Section 2.2(d)
in respect of any Letter of Credit, such Bank shall, automatically and without
any further action on the part of the Agent, any Issuing Bank or such Bank,
acquire (i) a funded participation in an amount equal to such payment in the
Reimbursement Obligation owing to such Issuing Bank by the applicable Borrower
hereunder and under the Letter of Credit Documents relating to such Letter of
Credit and (ii) a participation in a percentage equal to such Bank's LC
Participation Percentage in any interest or other amounts payable by the
Borrowers hereunder and under such Letter of Credit Documents in respect of such
Reimbursement Obligation (other than the Fronting Fee contemplated by Section
2.11(b)(i)). Upon receipt by any Issuing Bank from or for the account of a
Borrower of any payment in respect of any Reimbursement Obligation or any such
interest or other amount (including by way of setoff or application of proceeds
of any collateral security or the withdrawal and application of funds from the
Collateral Account as required by Section 2.2(c)), such Issuing Bank shall
promptly pay to the Agent, for the account of each Bank entitled thereto, such
Bank's Participation Percentage of such payment, each such payment by such
Issuing Bank to be made in the same currency and funds in which received by any
Issuing Bank. In the event any payment received by such Issuing Bank and so paid
to the Banks hereunder is rescinded or must otherwise be returned by any Issuing
Bank, each Bank shall, upon the request of such Issuing Bank (through the
Agent), repay to such Issuing Bank (through the Agent) the portion of such
payment paid to such Bank.

                  (f)      Information Provided by Issuing Banks to Banks.
Promptly after the issuance of or amendment to any Letter of Credit, the Issuing
Bank that issued such Letter of Credit will notify the Agent and the applicable
Borrower in writing of such issuance or amendment and such notice shall be
accompanied by a copy of such issued or amended Letter of

                                       15

<PAGE>

Credit. Upon receipt of such notice, the Agent shall notify each Bank of such
issuance or amendment and, if requested by a Bank, the Agent shall provide such
Bank with copies of such issued or amended Letter of Credit and any related
Letter of Credit Documents thereto.

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

                  (h)      Interest Payable to Issuing Banks by Banks. To the
extent that any Bank shall fail to pay any amount required to be paid pursuant
to Sections 2.2(d) or (e) on the due date therefor, such Bank shall pay interest
to the Issuing Bank owed such amount (through the Agent) on such amount from and
including such due date to but excluding the date such payment is made at a rate
per annum equal to the Federal Funds Rate.

                  (i)      Indemnification of the Banks, Issuing Banks and
Agent. The Borrowers hereby indemnify and hold harmless each Bank, each Issuing
Bank and the Agent from and against any and all claims, damages, losses,
liabilities, costs and expenses that such Bank, such Issuing Bank or the Agent
may incur (or that may be claimed against such Bank, such Issuing Bank or the
Agent by any Person whatsoever) by reason of or in connection with the execution
and delivery or transfer of or payment or refusal to pay by each Issuing Bank
under any Letter of Credit (EXPRESSLY INCLUDING ANY SUCH CLAIM, DAMAGE, LOSS,
LIABILITY OR EXPENSE ATTRIBUTABLE TO THE ORDINARY, SOLE OR CONTRIBUTORY
NEGLIGENCE OF SUCH BANK, SUCH ISSUING BANK OR THE AGENT, AS THE CASE MAY BE, BUT
EXCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE ATTRIBUTABLE TO THE
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH BANK, SUCH ISSUING BANK AND THE
AGENT). IT IS THE INTENT OF THE PARTIES HERETO THAT EACH BANK, EACH ISSUING BANK
OR THE AGENT, AS THE CASE MAY BE, SHALL, TO THE EXTENT PROVIDED IN THIS SECTION
2.2(i), BE INDEMNIFIED FOR ITS OWN ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE;
provided that the Borrowers shall not be required to indemnify any Bank, any
Issuing Bank or the Agent for any claims, damages, losses, liabilities, costs or
expenses to the extent, but only to the extent, caused by (A) in the case of

                                       16

<PAGE>

each Issuing Bank, the willful misconduct or gross negligence of such Issuing
Bank in determining whether a request presented under any Letter of Credit
complied with the terms of such Letter of Credit or (B) in the case of any Bank,
such Bank's failure to pay its Letter of Credit Liabilities pursuant to Sections
2.2(d), (e) and (h).

                  SECTION 2.3. Making the Revolving Credit Advances.

                  (a)      Each Revolving Credit Borrowing shall be made on
notice, given not later than 11:00 a.m. (New York City time) on the third
Business Day prior to the date of the proposed Revolving Credit Borrowing in the
case of a Revolving Credit Borrowing consisting of Eurodollar Rate Advances, or
10:00 a.m. (New York City Time) the Business Day of the proposed Revolving
Credit Borrowing in the case of a Revolving Credit Borrowing consisting of Base
Rate Advances, by the Borrower to the Agent, which shall give to each Bank
prompt notice thereof by telecopier or telex. Each such notice of a Revolving
Credit Borrowing (a "Notice of Revolving Credit Borrowing") shall be by
telephone, confirmed immediately in writing, or telecopier or telex in
substantially the form of Exhibit D-2 hereto, specifying therein the requested
(i) date of such Revolving Credit Borrowing, (ii) Type of Revolving Credit
Advance, (iii) aggregate amount of such Revolving Credit Borrowing, and (iv) in
the case of a Revolving Credit Borrowing consisting of Eurodollar Rate Advances,
initial Interest Period for each such Revolving Credit Advance. Each Bank shall,
before 12:00 p.m. (New York City time) on the date of such Revolving Credit
Borrowing, make available for the account of its Applicable Lending Office to
the Agent at the Agent's Account, in same day funds, such Bank's ratable portion
of such Revolving Credit Borrowing. After the Agent's receipt of such funds and
upon fulfillment of the applicable conditions set forth in Article III, the
Agent will make such funds available to the Borrower at the Agent's address
referred to in Section 8.2.

                  (b)      Anything in Section 2.3(a) to the contrary
notwithstanding, a Borrower may not select Eurodollar Rate Advances for any
Revolving Credit Borrowing if the aggregate obligation of the Banks to make
Eurodollar Rate Advances shall then be suspended pursuant to Sections 2.3(e),
2.14 or 2.16.

                  (c)      No Borrower may select Eurodollar Rate Advances for
any Revolving Credit Borrowing if the aggregate amount of such Revolving Credit
Borrowings is less than $10,000,000.

                  (d)      Each Notice of Revolving Credit Borrowing shall be
irrevocable and binding on such Borrower. In the case of any Revolving Credit
Borrowing that the related Notice of Revolving Credit Borrowing specifies is to
be comprised of Eurodollar Rate Advances, the Borrowers shall indemnify each
Bank against any loss, cost or expense incurred by such Bank as a result of any
failure by the Borrowers to fulfill on or before the date specified in such
Notice of Revolving Credit Borrowing for such Revolving Credit Borrowing the
applicable conditions set forth in Article III, including, without limitation,
any loss (excluding loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by
such Bank to fund the Revolving Credit Advance to be made by such Bank as part
of such Revolving Credit Borrowing when such Revolving Credit Advance, as a
result of such failure, is not made on such date.

                                       17
<PAGE>

                  (e)      If the Agent is unable to determine the Eurodollar
Rate for Eurodollar Rate Advances, the obligation of the Banks to make, or to
Convert Revolving Credit Advances into, Eurodollar Rate Advances shall be
suspended until the Agent shall notify the Borrowers and the Banks that the
circumstances causing such suspension no longer exist, and, except as provided
in Section 2.3(f), each Revolving Credit Advance comprising any requested
Revolving Credit Borrowing shall be a Base Rate Advance.

                  (f)      If a Borrower has requested a proposed Revolving
Credit Borrowing consisting of Eurodollar Rate Advances and as a result of
circumstances referred to in Section 2.3(e) or Section 2.14(b) such Revolving
Credit Borrowing would not consist of Eurodollar Rate Advances, such Borrower
may, by notice given not later than 3:00 p.m. (New York City time) at least one
Business Day prior to the date such proposed Revolving Credit Borrowing would
otherwise be made, cancel such Revolving Credit Borrowing, in which case such
Revolving Credit Borrowing shall be cancelled and no Revolving Credit Advances
shall be made as a result of such requested Revolving Credit Borrowing, but such
Borrower shall indemnify the Banks in connection with such cancellation as
contemplated by Section 2.3(d).

                  (g)      Unless the Agent shall have received notice from a
Bank prior to the date of any Revolving Credit Borrowing that such Bank will not
make available to the Agent such Bank's ratable portion of such Revolving Credit
Borrowing, the Agent may assume that such Bank has made such portion available
to the Agent on the date of such Revolving Credit Borrowing in accordance with
Section 2.3(a) and the Agent may, in reliance upon such assumption, make
available to a Borrower on such date a corresponding amount. If and to the
extent that such Bank shall not have so made such ratable portion available to
the Agent, such Bank and Borrower severally agree to repay to the Agent
forthwith on demand such corresponding amount together with interest thereon,
for each day from the date such amount is made available to such Borrower until
the date such amount is repaid to the Agent, at (i) in the case of such
Borrower, the interest rate applicable at the time to Revolving Credit Advances
comprising such Revolving Credit Borrowing and (ii) in the case of such Bank,
the Federal Funds Rate. If such Bank shall repay to the Agent such corresponding
amount, such amount so repaid shall constitute such Bank's Revolving Credit
Advance as part of such Revolving Credit Borrowing for purposes of this
Agreement and such Borrower shall be relieved of its obligations to repay such
amount under this Section 2.3(g).

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

                  SECTION 2.4. Voluntary Reduction of the Commitments. Each
Borrower shall have the right, upon at least three Business Days notice to the
Agent, to terminate in whole or reduce ratably in part (i) the Unused Revolving
Credit Commitments and (ii) the unused portions of the Letter of Credit
Commitments; provided that each partial reduction shall be in the aggregate
amount of at least $10,000,000 or an integral multiple of $1,000,000 in excess
thereof and shall be made ratably among the Banks or Issuing Banks, as the case
may be, in accordance

                                       18

<PAGE>

with their respective Commitments hereunder; and provided further that the
aggregate amount of the Letter of Credit Commitments shall not be reduced to an
amount which is less than the aggregate amount of all Letter of Credit
Liabilities.

                  SECTION 2.5. Prepayments.

                  (a)      Optional. Each Borrower may, upon notice to the Agent
(i) before 10:00 a.m. (New York City time) for Base Rate Advances on the date of
prepayment and (ii) upon at least three Business Days' notice to the Agent for
Eurodollar Rate Advances stating the proposed date and aggregate principal
amount of the prepayment, and if such notice is given by such Borrower shall,
prepay the outstanding principal amount of the Revolving Credit Advances
comprising part of the same Revolving Credit Borrowing in whole or ratably in
part, together with accrued interest and fees to the date of such prepayment on
the principal amount prepaid and amounts, if any, required to be paid pursuant
Section 8.4(c) as a result of such prepayment; provided, however, that each
prepayment pursuant to this Section 2.5(a) shall be in an aggregate principal
amount not less than $5,000,000.

                  (b)      Mandatory. Upon the date of receipt of written notice
by the Borrowers from the Agent or the Majority Banks of the occurrence of any
Mandatory Prepayment Event (such written notice to be delivered by the Agent or
the Majority Banks to the Borrowers not later than ten Business Days from the
date of an occurrence of any Mandatory Prepayment Event), all then outstanding
Revolving Credit Advances, including any amounts required to be paid pursuant to
Section 8.4(c) as a result of such prepayment, shall be repaid by the Borrowers
(which the Borrowers may elect to repay using amounts on deposit in the
Collateral Account (in accordance with the Security Agreement) if and to the
extent funds are available in such Collateral Account) by no later than 10
Business Days from the date of receipt of such written notice of such Mandatory
Prepayment Event.

                  SECTION 2.6. Increased Costs.

                  (a)      If any Bank or Issuing Bank determines that
compliance with any law or regulation or any guideline or request from any
central bank or other governmental or monetary authority (whether or not having
the force of law) affects or would affect the amount of capital required or
expected to be maintained by such Bank or Issuing Bank, as the case may be, or
any corporation controlling such Bank or Issuing Bank, as the case may be, and
that the amount of such capital is increased by or based upon the existence of
such Bank's or such Issuing Bank's, as the case may be, commitment to lend
hereunder, issue Letters of Credit or purchase participations in Letters of
Credit and other commitments of this type, then, upon demand by such Bank or
Issuing Bank, as the case may be (with a copy of such demand and related
certificate (which certificate shall specify in reasonable detail the nature of
such change in capital requirements, the proposed (or actual) compliance change
to be adopted by the applicable Bank or Issuing Bank and the calculations upon
which any compensation is claimed hereunder) to the Agent), the Borrowers shall
immediately pay to the Agent within five Business Days of receipt of such demand
for the account of such Bank or Issuing Bank, as the case may be, from time to
time as specified by such Bank or Issuing Bank, as the case may be, additional
amounts sufficient to compensate such Bank or Issuing Bank, as the case may be,
or such corporation in the light of such circumstances, to the extent that such
Bank or Issuing Bank, as the case may be,

                                       19

<PAGE>

reasonably determines such increase in capital to be allocable to the existence
of such Bank's or such Issuing Bank's, as the case may be, commitment to lend,
issue Letters of Credit or purchase participations in Letters of Credit
hereunder. A certificate as to the amount of such additional amounts, submitted
to the Borrowers and the Agent by such Bank or Issuing Bank, as the case may be,
shall be prima facie evidence of the amount of such additional amounts. No Bank
or Issuing Bank shall have any right to recover any additional amounts under
this Section 2.6(a) for any period more than 90 days prior to the date such Bank
or Issuing Bank, as the case may be, notifies the Borrowers of any such
compliance.

                  (b)      In the event that any Bank (i) makes a demand for
payment under Section 2.2, 2.8, 2.17 or this Section 2.6, or (ii) does not agree
to provide its consent or agree to any amendment or waiver pursuant to Section
8.1 where such consent or agreement to provide an amendment or waiver is
required of all the Banks hereto, TWC may within ninety (90) days of such demand
or non-consent, if no Default or Event of Default then exists, replace such Bank
with another commercial bank in accordance with all of the provisions of the
second and third sentences of Section 8.5(a), and clauses (b) and (d) of Section
8.5 (including execution of an appropriate Transfer Agreement); provided that
(w) all obligations of such Bank to lend hereunder or purchase participations in
Letters of Credit shall be terminated and the Letter of Credit Interests held by
such Bank and Notes payable to such Bank and all other obligations owed to such
Bank hereunder shall be purchased in full without recourse at par plus accrued
interest and fees at or prior to such replacement, (x) such replacement bank
shall be an Eligible Assignee, (y) such replacement bank shall, from and after
such replacement, be deemed for all purposes to be a "Bank" hereunder with a
Revolving Credit Commitment and Letter of Credit Liabilities in the amount of
the Revolving Credit Commitment and Letter of Credit Liabilities of such Bank to
such Borrower immediately prior to such replacement (plus, if such replacement
bank is already a Bank prior to such replacement the respective Revolving Credit
Commitment and Letter of Credit Liabilities of such Bank to such Borrower prior
to such replacement), as such amount may be changed from time to time pursuant
hereto, and shall have all of the rights, duties and obligations hereunder of
the Bank being replaced, including obligations under Section 2.1(b), and (z)
such other actions shall be taken by the Borrowers, such Bank and such
replacement bank as may be appropriate to effect the replacement of such Bank
with such replacement bank on terms such that such replacement bank has all of
the rights, duties and obligations hereunder as such Bank (including
specification of the information contemplated by Schedule I as to such
replacement bank).

                  (c)      Before making any demand under this Section 2.6, each
Bank agrees to use reasonable efforts (consistent with its internal policy and
legal and regulatory restrictions) to designate a different Lending Office if
the making of such a designation would avoid the need for, or reduce the amount
of, such increased cost and would not, in the reasonable judgment of such Bank,
be otherwise disadvantageous to such Bank.

                  SECTION 2.7. Payments and Computations.

                  (a)      Each Borrower shall make each payment hereunder to be
made by it not later than 11:00 a.m. (New York City time) on the day when due in
Dollars to the Agent at its New York address referred to in Section 8.2, in each
case in same day funds, without deduction, counterclaim or offset of any kind.
The Agent will promptly thereafter cause to be distributed

                                       20

<PAGE>

like funds relating to the payment of principal, interest or any fees to the
Banks for the account of their respective Lending Offices, and like funds
relating to the payment of any other amount payable to any Bank to such Bank for
the account of its Lending Office, in each case to be applied in accordance with
the terms of this Agreement. The Agent will promptly pay to the Collateral Agent
like funds relating to the payment of any amount payable to the Collateral
Agent. In no event shall any Bank be entitled to share any fee paid to the Agent
pursuant to Section 2.11(a), any other fee paid to the Agent, as such, or any
Fronting Fee paid to an Issuing Bank pursuant to Section 2.11(b)(i).

                  (b)      (i) All computations of interest based on clause (a)
of the definition herein of "Base Rate" and all computations of all Commitment
Fees, Letter of Credit Fees, Fronting Fees and all other fees shall be made by
the Agent on the basis of a year of 365 or 366 days, as the case may be, and
(ii) all computations of interest based on the Eurodollar Rate, the Federal
Funds Rate and interest pursuant to Section 2.17 shall be made by the Agent on
the basis of a year of 360 days, in each case for the actual number of days
(including the first day but excluding the last day) occurring in the period for
which such interest, letter of credit fees or other fees are payable. Each
determination by the Agent of an interest rate or fee hereunder shall be
conclusive and binding for all purposes, absent manifest error.

                  (c)      Whenever any payment hereunder shall be stated to be
due on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest, commitment fee, letter of
credit fee or any other fee hereunder, as the case may be; provided, however,
that, if such extension would cause payment of interest on or principal of
Eurodollar Rate Revolving Credit Advances to be made in the next following
calendar month, such payment shall be made on the next preceding Business Day.

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

                  SECTION 2.8. Taxes.

                  (a)      Any and all payments by any Borrower hereunder shall
be made, in accordance with Section 2.7, free and clear of and without deduction
for any and all present or future taxes, levies, imposts, deductions, charges or
withholdings with respect thereto, and all liabilities with respect thereto,
excluding in the case of each Bank and the Agent, (i) taxes imposed on its net
income or net profits, and franchise taxes imposed on it, by the jurisdiction
under the laws of which such Bank or the Agent (as the case may be) is organized
or any political subdivision thereof and (ii) taxes imposed as a result of a
present or former connection

                                       21

<PAGE>

between such Bank or the Agent, as the case may be, and the jurisdiction
imposing such tax or any political subdivision thereof and, in the case of each
Bank, taxes imposed on its net income or net profits, and franchise taxes
imposed on it, by the jurisdiction of such Bank's Lending Office or any
political subdivision thereof, other than any such connection arising solely
from the Bank or Agent having executed or delivered, or performed its
obligations or received a payment under, or taken any other action related to
this Agreement (all such non-excluded taxes, levies, imposts, deductions,
charges, withholdings and liabilities being hereinafter referred to as "Taxes").
If any Borrower shall be required by law to deduct any Taxes from or in respect
of any sum payable hereunder or under any Note to any Bank or the Agent, (i) the
sum payable shall be increased as may be necessary so that after making all
required deductions for Taxes (including deductions for Taxes applicable to
additional sums payable under this Section 2.8) such Bank or the Agent, as the
case may be, receives an amount equal to the sum it would have received had no
such deductions for Taxes been made, (ii) such Borrower shall make such
deductions and (iii) such Borrower shall pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable
law.

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

                  (c)      Each Borrower will indemnify each Bank, each Issuing
Bank and the Agent for the full amount of Taxes or Other Taxes (including any
Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this
Section 2.8) owed and paid by such Bank, such Issuing Bank or the Agent, as the
case may be, and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto. This indemnification shall be made
within 30 days from the date such Bank, such Issuing Bank or the Agent, as the
case may be, makes written demand therefor; provided that such Borrower shall
have no liability pursuant to this clause (c) of this Section 2.8 to indemnify a
Bank, an Issuing Bank or the Agent for Taxes or Other Taxes which were paid by
such Bank, such Issuing Bank or the Agent, as the case may be, more than ninety
days prior to such written demand for indemnification.

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

                  (e)      Promptly following payment of Taxes by or at the
direction of any Borrower, such Borrower will furnish to the Agent, at its
address referred to in Section 8.2, the original or a certified copy of a
receipt evidencing payment thereof (or, if no such receipt is reasonably
available, other evidence of payment reasonably acceptable to the Agent). Should
any Bank, any Issuing Bank or the Agent ever receive any refund, credit or
deduction from any taxing authority to which such Bank, such Issuing Bank or the
Agent, as the case may be, would not be entitled but for the payment by such
Borrower of Taxes as required by this Section 2.8 (it

                                       22

<PAGE>

being understood that the decision as to whether or not to claim, and if
claimed, as to the amount of any such refund, credit or deduction shall be made
by such Bank, such Issuing Bank or the Agent, as the case may be, in its
reasonable judgment), such Bank, such Issuing Bank or the Agent, as the case may
be, thereupon shall repay to such Borrower an amount with respect to such
refund, credit or deduction equal to any net reduction in taxes actually
obtained by such Bank, such Issuing Bank or the Agent, as the case may be, and
determined by such Bank, such Issuing Bank or the Agent, as the case may be, to
be attributable to such refund, credit or deduction.

                  (f)      Each Bank organized under the laws of a jurisdiction
outside the United States shall on or prior to the date of its execution and
delivery of this Agreement in the case of each Bank which is a party to this
Agreement on the date this Agreement becomes effective and on the date the
Transfer Agreement pursuant to which it becomes a Bank is first effective in the
case of each other Bank, and from time to time thereafter as necessary or
appropriate (but only so long thereafter as such Bank remains lawfully able to
do so), provide each of the Agent and each Borrower with two original Internal
Revenue Service Forms W-8BEN or W-8ECI (or, in the case of a Bank that has
provided a certificate to the Agent that it is not (i) a "bank" as defined in
Section 881(c)(3)(A) of the Code, (ii) a ten-percent shareholder (within the
meaning of Section 871(h)(3)(B) of the Code) of such Borrower or (iii) a
controlled foreign corporation related to such Borrower (within the meaning of
Section 864(d)(4) of the Code), Internal Revenue Service Form W-8BEN), or any
successor or other form prescribed by the Internal Revenue Service, certifying
that such Bank is exempt from or entitled to a reduced rate of United States
withholding tax on payments pursuant to this Agreement or any other Credit
Document or, in the case of a Bank that has certified that it is not a "bank" as
described above, certifying that such Bank is a foreign corporation. If the
forms provided by a Bank at the time such Bank first becomes a party to this
Agreement indicate a United States interest withholding tax rate in excess of
zero, withholding tax at such rate shall be considered excluded from Taxes
unless and until such Bank provides the appropriate forms certifying that a
lesser rate applies, whereupon withholding tax at such lesser rate only shall be
considered excluded from Taxes for periods governed by such forms.

                  (g)      For any period with respect to which a Bank has
failed to provide any Borrower with the appropriate form, certificate or other
document described in subsection (f) of this Section 2.8 (other than if such
failure is due to a change in the applicable law, or in the interpretation or
application thereof, occurring after the date on which a form, certificate or
other document originally was required to be provided) such Bank shall not be
entitled to indemnification under subsection (a) or (c) of this Section 2.8 with
respect to Taxes imposed by the United States by reason of such failure;
provided, however, that should a Bank become subject to Taxes because of its
failure to deliver a form, certificate or other document required hereunder, the
Borrowers shall take such steps as such Bank shall reasonably request (at such
Bank's expense) to assist such Bank in recovering such Taxes.

                  (h)      Any Bank claiming any additional amounts payable
pursuant to this Section 2.8 agrees to use reasonable efforts to change the
jurisdiction of its Lending Office if the making of such a change would avoid
the need for, or reduce the amount of, any such additional amounts that may
thereafter accrue and would not, in the reasonable judgment of such Bank, be
otherwise materially disadvantageous to such Bank.

                                       23

<PAGE>

                  (i)      If a Borrower determines in good faith that a
reasonable basis exists for contesting a Tax, the relevant Bank, or the Agent,
as applicable, shall provide reasonable cooperation to such Borrower in
challenging such Tax at such Borrower's expense and if requested by such
Borrower in writing; provided, however, that no Bank shall be required to take
any action hereunder which, in the reasonable discretion of such Bank, would
cause such Bank or its applicable lending office to suffer a legal, regulatory
or material economic disadvantage.

                  (j)      Without prejudice to the survival of any other
agreement of the Borrowers hereunder, the agreements and obligations of the
Borrowers contained in this Section 2.8 shall survive the payment in full of
principal and interest hereunder and the Termination Date.

                  (k)      Notwithstanding any provision of this Agreement or
the Notes to the contrary, this Section 2.8 shall be the sole provision
governing indemnities and claims for taxes under this Agreement.

                  SECTION 2.9. Sharing of Payments, Etc. If any Bank shall
obtain any payment (whether voluntary or involuntary, or through the exercise of
any right of set-off or otherwise) on account of the Revolving Credit Advances
made by it or its Letter of Credit Interest (other than pursuant to Section 2.6,
2.8, 2.17, 8.4(b) or 8.4(c)) in excess of its ratable share of payments on
account of all Revolving Credit Advances and Letter of Credit Interests obtained
by all the Banks, such Bank shall forthwith purchase from the other Banks such
participations in the Revolving Credit Advances and Letter of Credit Interests
of such other Banks as shall be necessary to cause such purchasing Bank to share
the excess payment ratably with each of them; provided, however, that if all or
any portion of such excess payment is thereafter recovered from such purchasing
Bank, such purchase from each Bank shall be rescinded and such Bank shall repay
to the purchasing Bank the purchase price to the extent of such Bank's ratable
share (according to the proportion of (i) the amount of the participation
purchased from such Bank as a result of such excess payment to (ii) the total
amount of such excess payment) of such recovery together with an amount equal to
such Bank's ratable share (according to the proportion of (i) the amount of such
Bank's required repayment to (ii) the total amount so recovered from the
purchasing Bank) of any interest or other amount paid or payable by the
purchasing Bank in respect of the total amount so recovered. Each Borrower
agrees that any Bank so purchasing a participation from another Bank pursuant to
this Section 2.9 may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of set-off) with respect to such
participation as fully as if such Bank were the direct creditor of such Borrower
in the amount of such participation; provided, that in no event shall the
Borrowers be liable for duplicative payments under this Section 2.9 in respect
to any Obligation or other liability under the Credit Documents.

                  SECTION 2.10. Evidence of Debt. Each Bank and Issuing Bank
shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of each Borrower to such Bank or Issuing Bank
resulting from each Revolving Credit Advance or Letter of Credit Interest owing
to such Bank or Issuing Bank, as the case may be, from time to time, including
the amounts of principal and interest payable and paid to such Bank or Issuing
Bank from time to time hereunder. Each Borrower agrees that upon notice by any
Bank to such Borrower (with a copy of such notice to the Agent) to the effect
that a promissory note or other evidence of indebtedness is required or
appropriate in order for such Bank to evidence (whether

                                       24

<PAGE>

for purposes of pledge, enforcement or otherwise) such Revolving Credit Advance
owing to, or to be made by, such Bank, such Borrower shall promptly execute and
deliver to such Bank, with a copy to the Agent, a Note in substantially the form
of Exhibit F hereto payable to the order of such Bank. All references to Notes
in the Credit Documents shall mean Notes, if any, to the extent issued
hereunder.

                  (a)      The Register maintained by the Agent pursuant to
Section 8.5(c) shall set forth (i) the date and amount of each Letter of Credit
and Revolving Credit Borrowing made hereunder, the Type of Revolving Credit
Advances comprising such Revolving Credit Borrowing and, if appropriate, the
Interest Period applicable thereto, (ii) the terms of each Transfer Agreement
delivered to and accepted by it, (iii) the amount of any principal or interest
due and payable or to become due and payable from each Borrower to each Bank
hereunder, and (iv) the amount of any sum received by the Agent from any
Borrower hereunder and each Bank's share thereof.

                  (b)      Entries made in good faith by the Agent in the
Register pursuant to subsection (b) above, and by each Bank or Issuing Bank in
its account or accounts pursuant to subsection (a) above, shall be prima facie
evidence of the amount of principal and interest due and payable or to become
due and payable from any Borrower to, in the case of the Register, the Agent
and, in the case of such account or accounts, such Bank, Issuing Bank or the
Agent, under this Agreement, absent manifest error; provided, however, that the
failure of the Agent or such Bank or Issuing Bank to make an entry, or any
finding that an entry is incorrect, in the Register or such account or accounts
shall not limit or otherwise affect the obligations of the Borrowers under this
Agreement.

                  SECTION 2.11. Fees.

                  (a)      Agent's and Collateral Agent's Fees. TWC agrees to
pay to the Agent and the Collateral Agent, for their respective sole account,
such fees as may be separately agreed to in writing by TWC and the Agent and the
Collateral Agent.

                  (b)      Letter of Credit Fees.

                  (i)      Fronting Fee. The Borrowers agree to pay to the Agent
         for the account of each Issuing Bank a fronting fee (a "Fronting Fee")
         based on the Available Amount of each Letter of Credit (for the stated
         duration thereof, and giving effect to any step up provision or other
         mechanism for increase that (x) occurs automatically and is not subject
         to the occurrence or satisfaction or any condition or contingency or
         (y) that is unilaterally exercisable by such Borrower) issued by such
         Issuing Banks in an amount equal to 0.125% per annum. All Fronting Fees
         payable pursuant to this Section 2.11(b)(i) shall be payable in arrears
         on the last Business Day of each Fiscal Quarter and on the Termination
         Date. In addition, the Borrowers shall pay directly to each Issuing
         Bank for its own account the customary issuance, presentation,
         amendment and other processing fees, and other standard costs and
         charges, of such Issuing Bank relating to Letters of Credit as from
         time to time in effect. Such customary fees and standard costs and
         charges are due and payable on demand and are nonrefundable.

                                       25

<PAGE>

                  (ii)     Participating Banks. The Borrowers agree to pay to
         the Agent for the account of each Bank a letter of credit fee (a
         "Letter of Credit Fee") based on such Bank's LC Participation
         Percentage of the average daily aggregate Available Amount of all
         Letters of Credit outstanding from time to time at a rate of 0.75% per
         annum (for the stated duration thereof, and giving effect to any step
         up provision or other mechanism for increase that (x) occurs
         automatically and is not subject to the occurrence or satisfaction or
         any condition or contingency or (y) is unilaterally exercisable by the
         Borrowers). All amounts payable pursuant to this Section 2.11(b)(ii)
         shall be paid in arrears on the last Business Day of each Fiscal
         Quarter and on the Termination Date.

                  (c)      Commitment Fees. The Borrowers agree to pay to the
Agent for the account of each Bank a commitment fee (a "Commitment Fee"), in an
amount equal to 0.10% per annum on such Bank's Unused Revolving Credit
Commitment. All amounts payable pursuant to this Section 2.11(c) shall be paid
in arrears on the last Business Day of each Fiscal Quarter and on the
Termination Date.

                  SECTION 2.12. Repayment of Revolving Credit Advances. Each
Borrower shall repay to the Agent for the ratable account of the Banks on the
Termination Date, or such earlier date as the Notes may become due and payable
pursuant to Article VI, the aggregate principal amount of the Revolving Credit
Advances then outstanding.

                  SECTION 2.13. Interest.

                  (a)      Scheduled Interest. Each Borrower shall pay interest
on the unpaid principal amount of each Revolving Credit Advance owing to each
Bank from the date of such Revolving Credit Advance until such principal amount
shall be paid in full, at the following rates per annum:

                  (i)      Base Rate Advances. During such periods as such
         Revolving Credit Advance is a Base Rate Advance, a rate per annum equal
         at all times the Base Rate in effect from time to time, payable in
         arrears quarterly on the last Business Day of each Fiscal Quarter
         during such periods and on the date such Base Rate Advance shall be
         Converted or paid in full.

                  (ii)     Eurodollar Rate Advances. During such periods as such
         Revolving Credit Advance is a Eurodollar Rate Advance, a rate per annum
         equal at all times during each Interest Period for such Revolving
         Credit Advance to the sum of (x) the Eurodollar Rate for such Interest
         Period for such Revolving Credit Advance plus (y) the Applicable Margin
         in effect from time to time, payable in arrears on the last day of such
         Interest Period and, if such Interest Period has a duration of more
         than three months, on each day that occurs during such Interest Period
         every three months from the first day of such Interest Period and on
         the date such Eurodollar Rate Advance shall be Converted or paid in
         full.

                  (b)      Default Interest. Upon the occurrence and during the
continuance of an Event of Default under Section 6.1(a), the Borrowers shall pay
interest on (i) the unpaid principal amount of each (x) Revolving Credit Advance
owing to each Bank, payable in arrears in the

                                       26

<PAGE>

amounts and on the dates referred to in Section 2.13(a) or (y) Reimbursement
Obligation owing to each Bank, payable in arrears in the amounts and from the
date referred to in Section 2.2(c), plus 2% per annum above the rate per annum
required to be paid on such Revolving Credit Advance pursuant to Section 2.13(a)
or such rate per annum required to be paid on such Reimbursement Obligation
pursuant to Section 2.2(c) and (ii) to the fullest extent permitted by law, the
amount of any interest, Fronting Fee, Commitment Fee, Letter of Credit Fee or
any other fee or other amount payable hereunder that is not paid when due, from
the date such amount shall be due until such amount shall be paid in full,
payable in arrears on the date such amount shall be paid in full and on demand,
at a rate per annum equal at all times to 2% per annum above the rate per annum
required to be paid on Base Rate Advances pursuant to Section 2.13(a)(i).

                  SECTION 2.14. Interest Rate Determination.

                  (a)      The Agent shall give prompt notice to the Borrowers
and the Banks of the applicable interest rate determined by the Agent for
purposes of Section 2.13(a)(i) or 2.13(a)(ii).

                  (b)      If, with respect to any Eurodollar Rate Revolving
Credit Advances, the Majority Banks notify the Agent that the Eurodollar Rate
for any Interest Period for such Revolving Credit Advances will not adequately
reflect the cost to such Majority Banks of making, funding or maintaining their
respective Eurodollar Rate Advances for such Interest Period, the Agent shall
forthwith so notify the Borrowers and the Banks, whereupon (i) each Eurodollar
Rate Advance will automatically, on the last day of the then existing Interest
Period therefor, Convert into a Base Rate Advance, and (ii) the obligation of
the Banks to make, or to Convert Revolving Credit Advances into, Eurodollar Rate
Advances shall be suspended until the Agent shall notify the Borrowers and the
Banks that the circumstances causing such suspension no longer exist.

                  (c)      If a Borrower shall fail to select the duration of
any Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of "Interest Period" in Section 1.01, the
Agent will forthwith so notify such Borrower and the Banks and such Revolving
Credit Advances will automatically, on the last day of the then existing
Interest Period therefor, Convert into Base Rate Advances.

                  (d)      On the date on which the aggregate unpaid principal
amount of Eurodollar Rate Advances comprising any Revolving Credit Borrowing
shall be reduced, by payment or prepayment or otherwise, to less than
$10,000,000, such Revolving Credit Advances shall automatically Convert into
Base Rate Advances and the applicable Borrower shall pay any amounts required to
be paid pursuant Section 8.4(c) as a result of such Conversion.

                  (e)      Upon the occurrence and during the continuance of any
Event of Default under Section 6.1(a), (i) each Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance and (ii) the obligation of the Banks to make,
or to Convert Advances into, Eurodollar Rate Advances shall be suspended.

                  SECTION 2.15. Optional Conversion of Revolving Credit
Advances. Any Borrower may on any Business Day, upon notice given to the Agent
not later than 11:00 a.m.

                                       27

<PAGE>

(New York City time) on the third Business Day prior to the date of the proposed
Conversion and subject to the provisions of Sections 2.14 and 2.16, Convert all
Revolving Credit Advances of one Type comprising the same Revolving Credit
Borrowing into Revolving Credit Advances of the other Type; provided, however,
that any Conversion of Eurodollar Rate Advances into Base Rate Advances shall be
made only on the last day of an Interest Period for such Eurodollar Rate
Advances and any Conversion of Base Rate Advances into Eurodollar Rate Advances
shall be in an amount not less than $10,000,000. Each such notice of a
Conversion shall, within the restrictions specified above, specify (a) the date
of such Conversion, (b) the Revolving Credit Advances to be Converted and (c) if
such Conversion is into Eurodollar Rate Advances, the duration of the initial
Interest Period for each such Advance. Each notice of Conversion shall be
irrevocable and binding on such Borrower.

                  SECTION 2.16. Illegality. Notwithstanding any other provision
of this Agreement, if any Bank shall notify the Agent that the introduction of
or any change in or in the interpretation of any law or regulation makes it
unlawful, or any central bank or other governmental authority having relevant
jurisdiction asserts that it is unlawful, for any Bank or its Eurodollar Lending
Office to perform its obligations hereunder to make Eurodollar Rate Advances or
to fund or maintain Eurodollar Rate Advances hereunder, (a) each Eurodollar Rate
Advance will automatically, upon such demand, Convert into a Base Rate Advance
and (b) the obligation of the Banks to make Eurodollar Rate Advances or to
Convert Revolving Credit Advances into Eurodollar Rate Advances shall be
suspended until the Agent shall notify the Borrowers and the Banks that the
circumstances causing such suspension no longer exist.

                  SECTION 2.17. Additional Interest on Eurodollar Rate Advances.
Each Borrower shall pay to each Bank, so long as such Bank shall be required
under regulations of the Board of Governors of the Federal Reserve System to
maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency Liabilities, additional interest on the unpaid principal
amount of each Eurodollar Rate Advance of such Bank to such Borrower, from the
date of such Revolving Credit Advance until such principal amount is paid in
full, at an interest rate per annum equal at all times to the remainder obtained
by subtracting (a) the Eurodollar Rate for the Interest Period for such
Revolving Credit Advance from (b) the rate obtained by dividing such Eurodollar
Rate by a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage
of such Bank for such Interest Period, payable on each date on which interest is
payable on such Revolving Credit Advance. Such additional interest shall be
determined by such Bank and notified to such Borrower through the Agent. A
certificate as to the amount of such additional interest submitted to such
Borrower and the Agent by such Bank shall be conclusive and binding for all
purposes, absent manifest error. No Bank shall have the right to recover any
additional interest pursuant to this Section 2.17 for any period more than 90
days prior to the date such Bank notifies the Borrowers that additional interest
may be charged pursuant to this Section 2.17.

                  SECTION 2.18. Existing Letters of Credit. Effective as of the
Effective Date, all "Letters of Credit" issued and outstanding under the LC
Agreement for the account of TWC shall be deemed to be Letters of Credit
hereunder.

                                       28

<PAGE>

                                   ARTICLE III

                                   CONDITIONS

                  SECTION 3.1. Conditions Precedent to Effectiveness of
Agreement. Article II hereof shall become effective on and as of the first date
(the "Effective Date") on which the Agent shall have received counterparts of
this Agreement duly executed by the Borrowers and all of the Banks and the
following additional conditions precedent have been satisfied or the following
additional documents have been received (except as provided otherwise in Section
3.1(i) below, all in form and substance satisfactory to the Agent):

                  (a)      Except as otherwise disclosed publicly (including
         disclosure in Public Filings prior to the date hereof) or to the
         Co-Lead Arrangers and the Banks prior to the date hereof, there shall
         not have occurred a material adverse change in the business, financial
         condition, operations or properties of the Borrowers and their
         Subsidiaries, taken as a whole, since December 31, 2002.

                  (b)      The Agent shall have received (in addition to a fully
         executed counterpart of this Agreement) the Notes, to the extent
         requested by a Bank and an executed copy of each other Credit Document.

                  (c)      The Agent shall have received certified copies of the
         resolutions of the Board of Directors, or the Executive Committee
         thereof, of each Borrower authorizing the execution of this Agreement,
         the Notes and each Notice of Letter of Credit and Notice of Revolving
         Credit Borrowing, and any other Credit Documents to which such Borrower
         is a party, and all other documents, in each case evidencing any
         necessary company action and governmental and other third party
         approvals and consents, if any, with respect to each such Credit
         Document and the transactions thereunder and hereunder.

                  (d)      The Agent shall have received a certificate of the
         Secretary or an Assistant Secretary of each Borrower certifying the
         names and true signatures of the officers of such Borrower authorized
         to sign each Credit Document to which it is or is to be a party and the
         other documents to be delivered hereunder and thereunder.

                  (e)      The Agent shall have received a copy of a certificate
         of the Secretary of State of the jurisdiction of incorporation of each
         Borrower, dated reasonably near the Effective Date, certifying (i) as
         to a true and correct copy of the charter of such Borrower, and each
         amendment thereto on file in such Secretary's office and (ii) that (x)
         such amendments are the only amendments to such Borrower's charter or
         other organizational documents on file in such Secretary's office, (y)
         such Borrower has paid all franchise taxes to the date of such
         certificate and (z) such Borrower is duly incorporated and in good
         standing or presently subsisting under the laws of the State of the
         jurisdiction of its incorporation.

                  (f)      The Agent shall have received opinions of each of (i)
         James J. Bender, Esq., General Counsel of TWC, substantially in the
         forms of Exhibit A hereto and (ii) White & Case LLP, New York counsel
         to the Borrowers, substantially in the form of

                                       29

<PAGE>

         Exhibit B, and, in each case, as to such other matters as any Bank
         through the Agent may reasonably request.

                  (g)      The Agent shall have received a certificate of each
         Borrower, signed on behalf of such Borrower by an Authorized Officer
         thereof, dated as of the Effective Date (the statements made in which
         certificate shall be true on and as of the Effective Date), certifying
         as to (i) the absence of any amendments to the charter of such Borrower
         since the date of the Secretary of State's certificate referred to in
         clause (e) above, (ii) a true and correct copy of the bylaws of such
         Borrower as in effect on the date on which the resolutions referred to
         in clause (c) were adopted and on the Effective Date, (iii) the due
         incorporation and good standing or valid existence of such Borrower as
         a corporation organized under the laws of the jurisdiction of its
         incorporation or organization, (iv) the truth, in all material
         respects, of the representations and warranties contained in this
         Agreement and the Credit Documents as though made on and as of the
         Effective Date other than any such representations or warranties that,
         by their terms, refer to a specific date other than the Effective Date,
         in which case as of such specific date and (v) the absence of any event
         occurring and continuing, or resulting from the consummation of the
         transactions hereunder or pursuant to the Credit Documents, that
         constitutes an Event of Default (other than any Event of Default which
         may arise as a result of a draw or probability of a draw under a Letter
         of Credit).

                  (h)      TWC shall have paid in full all accrued fees and
         expenses of the Agent, the Co-Lead Arrangers and the Banks (including
         the accrued reasonable fees and expenses of counsel to the Agent and
         the Co-Lead Arrangers for which an invoice has been received by the
         Borrowers).

                  (i)      Evidence that the Existing Credit Documentation shall
         have been terminated including (unless TWC otherwise agrees) release of
         substantially all liens thereunder and TWC shall have paid or agreed to
         pay all fees and expenses reasonably incurred pursuant therewith.

                  SECTION 3.2. Conditions Precedent to a Revolving Credit
Advance and an Issuance of a Letter of Credit. The obligation of each Bank to
make a Revolving Credit Advance on the occasion of any Revolving Credit
Borrowing and each Issuing Bank to issue or renew a Letter of Credit shall be
subject to the further conditions precedent that (i) the Agent shall have
received a Notice of Revolving Credit Borrowing in the form of Exhibit D-2
hereto or a Notice of Letter of Credit in the form of Exhibit D-1 hereto, as the
case may be, (ii) in the case of each Revolving Credit Advance and issuance or
renewal of a Financial Letter of Credit only, the Agent shall have received a
certificate of an Authorized Officer of TWC certifying that the delivery and
deposit of Collateral to the Collateral Account in connection with such
Revolving Credit Borrowing or issuance or renewal of a Financial Letter of
Credit does not give rise to default or an event of default pursuant to the
terms and conditions of any material indenture, agreement or other instrument of
the Borrowers which restricts the amount of Collateral which the Borrowers are
permitted to provide hereunder in such detail as the Agent may reasonably
require and (iii) on the date of such Revolving Credit Borrowing or issuance of
such Letter of Credit, the following statements shall be true (and each of the
giving of the applicable Notice of Borrowing or Notice of Letter of Credit and
the acceptance by such Borrower of the proceeds of

                                       30

<PAGE>

such Revolving Credit Borrowing or issuance of such Letter of Credit shall
constitute a representation and warranty by such Borrower that on the date of
such Revolving Credit Borrowing or such Letter of Credit is issued such
statements are true):

                  (a)      there has been no Change of Control Event;

                  (b)      each of the representations and warranties contained
         in Section 4.1(a) through (d), (h) and (l) are correct in all material
         respects on and as of the date of such Revolving Credit Borrowing or
         issuance or renewal of such Letter of Credit, before and after giving
         effect to such Revolving Credit Borrowing or issuance or renewal of
         such Letter of Credit, as though made on and as of such date (unless
         such representation and warranty speaks solely as of a particular date
         or a particular period, in which case, as of such date or for such
         period);

                  (c)      solely in connection with any Revolving Credit
         Borrowing or issuance or renewal of a Financial Letter of Credit, there
         has been no, nor will there be, any Cross-Acceleration Event or
         Judgment Event before or after giving effect to such Revolving Credit
         Borrowing or issuance or renewal of such Financial Letter of Credit;

                  (d)      no event has occurred and is continuing, or would
         result from such Revolving Credit Borrowing or issuance or renewal of
         such Letter of Credit, which constitutes a Default or Event of Default;

                  (e)      after giving effect to such Revolving Credit
         Borrowing or issuance of such Letter of Credit and Letters of Credit
         which have been requested by such Borrower on or prior to such date but
         which have not been made or issued prior to such date, the sum of the
         aggregate amount of all Revolving Credit Advances and Letter of Credit
         Liabilities will not exceed the aggregate of the Commitments of the
         Banks; and

                  (f)      the aggregate mark-to-market value of all Collateral
         in the Collateral Account for which the Collateral Agent has a
         first-priority perfected security interest shall be equal to or greater
         than the Collateral Coverage Requirement before and after giving effect
         to such Revolving Credit Borrowing or issuance or renewal of such
         Letter of Credit.

provided that, notwithstanding anything in this Section 3.2 to the contrary,
with respect to any Letters of Credit which shall automatically renew by their
own terms unless a notice of non-renewal is given by the applicable Issuing
Bank, such Issuing Bank may give such notice of non-renewal (after notice to
such Borrower and in no event earlier than the date 10 days prior to the latest
date on which it is entitled to do so) if applicable conditions precedent
pursuant to this Section 3.2 are not satisfied at the date of issuance of the
notice of non-renewal.

                                       31

<PAGE>

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

                  SECTION 4.1. Representations and Warranties of the Borrowers.
The Borrowers represent and warrant as follows:

                  (a)      Each Borrower is duly organized, validly existing and
         in good standing under the laws of the State of Delaware and has all
         corporate powers and all governmental licenses, authorizations,
         certificates, consents and approvals required to carry on its business
         as now conducted in all material respects.

                  (b)      After giving effect to this Agreement and assuming
         the consummation of the transactions contemplated hereby, the
         execution, delivery and performance by each of the Borrowers of the
         Credit Documents to which it is a party and the consummation of the
         transactions contemplated thereby are within such Borrower's corporate
         power, have been duly authorized by all necessary corporate action, and
         do not contravene (i) such Borrower's charter or by-laws, or (ii) law
         or any restriction under any material agreement binding on or affecting
         any Borrower (other than any default which may arise as a result of a
         draw or the probability of a draw under a Letter of Credit).

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

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

                  (e)      The Consolidated balance sheets of TWC and its
         Subsidiaries as at December 31, 2002, and the related Consolidated
         statements of income and cash flows of TWC and its Subsidiaries for the
         fiscal year then ended, copies of which have been furnished to each
         Bank, and the Consolidated balance sheet of TWC and its Subsidiaries as
         at March 31, 2003, and the related Consolidated statements of income
         and cash flows of TWC and its Subsidiaries for the three months then
         ended, duly certified by an authorized financial officer of TWC, copies
         of which have been furnished to each Bank, fairly present in all
         material respects (in the case of such balance sheets as at March 31,
         2003, and such statements of income and cash flows for the three months
         then ended, subject to normal recurring and other adjustments) the
         Consolidated financial condition of TWC and its Subsidiaries as at such
         dates and the Consolidated results of operations of TWC and its
         Subsidiaries for the year and three-month period, respectively, ended
         on such dates, all in accordance with generally accepted accounting
         principles consistently applied. Except as has been disclosed to each
         Bank prior to the date of this Agreement,

                                       32

<PAGE>

         from December 31, 2002 to the date of this Agreement, there has been no
         material adverse change in the Consolidated financial condition or
         Consolidated results of operations of TWC and its Consolidated
         Subsidiaries.

                  (i)      The Consolidated balance sheet of NWP and its
         Subsidiaries as at December 31, 2002, and the related Consolidated
         statement of income and cash flows of NWP and its Subsidiaries for the
         fiscal year then ended, copies of which have been furnished to each
         Bank, and the Consolidated balance sheet of NWP and its Subsidiaries as
         at March 31, 2003, and the related Consolidated statement of income and
         cash flows of NWP and its Subsidiaries for the three months then ended,
         duly certified by an authorized financial officer of NWP, copies of
         which have been furnished to each Bank, fairly present in all material
         respects, subject, in the case of such balance sheet as at March 31,
         2003, and such statements of income and cash flows for the three months
         then ended, to normal recurring and other adjustments, the Consolidated
         financial condition of NWP and its Subsidiaries as at such dates and
         the Consolidated results of operations of NWP and its Subsidiaries for
         the year and three-month period, respectively, ended on such dates, all
         in accordance with generally accepted accounting principles
         consistently applied.

                  (ii)     The Consolidated balance sheet of TGPL and its
         Subsidiaries as at December 31, 2002, and the related Consolidated
         statement of income and cash flows of TGPL and its Subsidiaries for the
         fiscal year then ended, copies of which have been furnished to each
         Bank, and the Consolidated balance sheet of TGPL and its Subsidiaries
         as at March 31, 2003, and the related Consolidated statement of income
         and cash flows of TGPL and its Subsidiaries for the three months then
         ended, duly certified by an authorized financial officer of TGPL,
         copies of which have been furnished to each Bank, fairly present in all
         material respects, subject, in the case of such balance sheet as at
         March 31, 2003, and such statements of income and cash flows for the
         three months then ended, to year-end audit adjustments, the
         Consolidated financial condition of TGPL and its Subsidiaries as at
         such dates and the Consolidated results of operations of TGPL and its
         Subsidiaries for the year and three-month period, respectively, ended
         on such dates, all in accordance with generally accepted accounting
         principles consistently applied.

                  (f)      Except as set forth in the Public Filings, there is
         no pending or, to the knowledge of each Borrower, threatened action or
         proceeding affecting any Borrower or any of their Subsidiaries or
         against any of its or their respective properties or revenues before
         any Governmental Authority or arbitrator (other than such threatened
         actions or proceedings which are being contested in good faith and by
         appropriate proceedings and with respect to which liabilities in
         conformity with generally accepted accounting principles, if required
         by such principles, have been established by the applicable Borrower or
         such Subsidiary, as the case may be) which could reasonably be expected
         to materially and adversely affect the value of the Collateral or on
         the ability of the Banks to exercise their rights and remedies in
         respect of the Collateral.

                  (g)      No Letter of Credit or Revolving Credit Advance has
         been or will be used for any purpose or in any manner contrary to the
         provisions of Section 5.2(b).

                                       33

<PAGE>

                  (h)      No Borrower is engaged in the business of extending
         credit for the purpose of purchasing or carrying margin stock (within
         the meaning of Regulation U issued by the Federal Reserve Board), and
         no proceeds of any issuance of a Letter of Credit or Revolving Credit
         Advance will be used to purchase or carry any such margin stock (other
         than purchases of common stock expressly permitted by Section 5.2(b))
         or to extend credit to others for the purpose of purchasing or carrying
         any such margin stock.

                  (i)      No Borrower is an "investment company" or a company
         "controlled" by an "investment company" within the meaning of the
         Investment Company Act of 1940, as amended.

                  (j)      No Termination Event has occurred or is reasonably
         expected to occur with respect to any Plan that could reasonably be
         expected to have a material adverse effect on the value of the
         Collateral, the perfection or priority of the liens of the Collateral
         Agent (for the benefit of the Secured Parties) on any material portion
         of such Collateral, or the ability of the Banks to exercise their
         rights and remedies in respect of the Collateral. No Borrower has nor
         has any ERISA Affiliate of any Borrower received any notification that
         any Multiemployer Plan is in reorganization or has been terminated,
         within the meaning of Title IV of ERISA, and no Borrower is aware of
         any reason to expect that any Multiemployer Plan is to be in
         reorganization or to be terminated within the meaning of Title IV of
         ERISA that would have any material adverse effect on the value of the
         Collateral or the ability of the Banks to exercise their rights and
         remedies in respect of the Collateral.

                  (k)      No Borrower is a "holding company," or a "subsidiary
         company" of a "holding company," or an "affiliate" of a "holding
         company" or of a "subsidiary company" of a "holding company," or a
         "public utility" within the meaning of the Public Utility Holding
         Company Act of 1935, as amended.

                  (l)      After taking all actions required to be made by TWC
         which are necessary to perfect the security interest in the Collateral
         created under the Security Agreement, the Security Agreement will
         create in favor of the Collateral Agent for the benefit of the Secured
         Parties (as defined in the Security Agreement) a valid, and together
         with any applicable actions, perfected first priority security interest
         in the Collateral, securing payment of the Secured Obligations (as
         defined in the Security Agreement). TWC is the legal and beneficial
         owner of the Collateral free and clear of any lien other than those in
         favor of the Collateral Agent for the benefit of the Secured Parties.

                                   ARTICLE V

                           COVENANTS OF THE BORROWERS

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

                                       34

<PAGE>

                  (a)      Compliance with Laws, Etc. Comply in all material
         respects with all applicable laws, rules, regulations and orders (other
         than such non-compliance matters which are being contested in good
         faith and by proper proceedings and with respect to which reserves in
         conformity with generally accepted accounting principles, if required
         by such principles, have been established by the applicable Borrower
         books of such Borrower) and where such failure to comply could not
         reasonably be expected to have a material adverse effect on the value
         of the Collateral, the perfection or priority of the liens of the
         Collateral Agent (for the benefit of the Secured Parties) on any
         material portion of such Collateral, or on the ability of the Banks to
         exercise their rights and remedies in respect of the Collateral.

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

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

                           (ii)     as soon as available and in any event not
                  later than 60 days after the end of each of the first three
                  quarters of each Fiscal Year of such Borrower, (1) the
                  unaudited Consolidated balance sheet of such Borrower and its
                  Consolidated Subsidiaries as of the end of such quarter and
                  the unaudited Consolidated statements of income and cash flows
                  of such Borrower and its Consolidated Subsidiaries for the
                  period commencing at the end of the previous year and ending
                  with the end of such quarter, all in reasonable detail and
                  duly certified (subject to normal recurring and other
                  adjustments and the lack of footnotes) by an Authorized
                  Financial Officer of such Borrower as having been prepared in
                  accordance with generally accepted accounting principles;
                  provided that, if any financial statement referred to in this
                  clause (ii) of Section 5.1(b) is readily available on-line
                  through EDGAR as of the date on which such financial statement
                  is required to be delivered hereunder, such Borrower shall not
                  be obligated to furnish copies of such financial statement;
                  and (2) a certificate of an Authorized Financial Officer of
                  such Borrower stating that he or she has no knowledge that a
                  Default or Event of Default has occurred and is continuing or,
                  if a Default or Event of Default has occurred and is
                  continuing, a statement as to the nature thereof and the
                  action, if any, which such Borrower proposes to take with
                  respect thereto;

                           (iii)    as soon as available and in any event not
                  later than (1) 105 days after the end of each Fiscal Year of
                  such Borrower, a copy of the annual audited report for such
                  year for such Borrower and its Consolidated Subsidiaries,
                  including therein the Consolidated balance sheet of such
                  Borrower and its Consolidated Subsidiaries as of the end of
                  such fiscal year and Consolidated statements of income and
                  cash flows of such Borrower and its Consolidated Subsidiaries
                  for such fiscal year, in each case prepared in accordance with

                                       35

<PAGE>

                  generally accepted accounting principles and reported on by
                  Ernst & Young, LLP or other independent certified public
                  accountants of recognized standing acceptable to the Majority
                  Banks; provided that if any financial statement referred to in
                  this clause (iii) of Section 5.1(b) is readily available
                  on-line through EDGAR as of the date on which such financial
                  statement is required to be delivered hereunder, the Borrowers
                  shall not be obligated to furnish copies of such financial
                  statement; and (2) 120 days after the end of each Fiscal Year
                  of such Borrower, a certificate of an Authorized Financial
                  Officer of such Borrower stating that he or she has no
                  knowledge that a Default or Event of Default has occurred and
                  is continuing or, if a Default or Event of Default has
                  occurred and is continuing, a statement as to the nature
                  thereof and the action, if any, which such Borrower proposes
                  to take with respect thereto.

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

                  (c)      Preservation of Corporate Existence, Etc. Preserve
         and maintain its existence, legal structure, legal name, and rights
         (charter and statutory), in the jurisdiction of its incorporation or
         formation, and qualify and remain qualified as a foreign corporation
         and maintain and preserve its franchise and privileges in each
         jurisdiction in which such qualification, franchise or privilege is
         necessary or desirable in view of its business and operations in the
         reasonable judgment of the applicable Borrower, except any Borrowers
         may consummate any merger, consolidation or sale, lease or transfer all
         or substantially of its assets as permitted pursuant to Section 5.2(a).

                  (d)      Security Interest in Collateral. Cause, and take all
         action reasonably requested by the Collateral Agent to maintain, a
         first priority perfected security interest to exist at all times in the
         Collateral held on deposit in the Collateral Account in favor of the
         Collateral Agent for the benefit of itself and the Secured Parties (as
         defined in the Security Agreement) pursuant to the Security Agreement.

                  SECTION 5.2. Negative Covenants. So long as any Revolving
Credit Advance shall remain unpaid, any Letter of Credit or Reimbursement
Obligation shall remain outstanding, any Letter of Credit Liability shall exist,
any Issuing Bank shall have any Letter of Credit Commitment or any Bank shall
have any Commitment hereunder, each Borrower will not, without the written
consent of the Majority Banks:

                  (a)      Mergers, Etc. Merge or consolidate with or into any
         other Person, or sell, lease or otherwise transfer all or substantially
         all of its assets, except that any Borrower may merge into, consolidate
         with or into or sell, lease or otherwise transfer all or substantially
         all of its assets to any successor or purchaser Business Entity so long
         as such successor or purchaser Business Entity shall be organized in
         the United States of

                                       36

<PAGE>

         America and shall have expressly assumed this Agreement and the
         obligations of such Borrower hereunder and under the other Credit
         Documents.

                  (b)      Use of Proceeds. Use any Letter of Credit or proceeds
         of any Revolving Credit Advance for any purpose other than general
         corporate purposes relating to the business of a Borrower (including
         without limitation, working capital, capital expenditures, and the
         acquisition, purchase or redemption of any Equity Interests or of any
         Debt of any Borrower or its Subsidiary), or use any Letter of Credit or
         proceeds of any Revolving Credit Advance in any manner which violates
         or results in a violation of law.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

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

                  (a)      Any Borrower (i) shall fail to pay any Reimbursement
         Obligation when the same becomes due and payable, (ii) shall fail to
         pay any principal of any Revolving Credit Advance or any Note executed
         by it when the same becomes due and payable, (iii) shall fail to pay
         any interest on any Reimbursement Obligation, Revolving Credit Advance
         or Note within five Business Days after the same becomes due and
         payable or (iv) shall fail to pay any fee or other amount to be paid by
         it hereunder or under any Credit Document to which it is a party within
         ten days after the same becomes due and payable; or

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

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

                                       37

<PAGE>

         failure shall continue for thirty days after the earlier of the date
         notice thereof shall have been given to such Borrower by the Agent or
         any Bank or the date any Authorized Financial Officer of such Borrower
         shall have actual knowledge of such failure, or (iv) any term, covenant
         or agreement contained in Section 5.1(d) on its part to be performed or
         observed and such failure shall continue for one Business Day after the
         earlier of the date notice thereof shall have been given to such
         Borrower by the Agent or any Bank or the date any Authorized Financial
         Officer of such Borrower shall have actual knowledge of such failure,
         or (v) any term, covenant or agreement contained in Section 5.2; or

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

                  (e)      Any material provision in the Security Agreement for
         any reason is not a legal, valid, binding and enforceable obligation of
         any Borrower party thereto or any Borrower party thereto shall so state
         in writing; or

                  (f)      the aggregate mark-to-market value of the Collateral
         shall be less than the Collateral Coverage Requirement for a period of
         five consecutive Business Days after the date of receipt by the
         Borrowers of written notice (which notice shall specify in reasonable
         detail the calculation and amount of such shortfall amount) from the
         Collateral Agent;

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

                                       38

<PAGE>

Revolving Credit Advances, all such interest and all such other amounts shall
automatically become and be due and payable, without presentment, demand,
protest, notice of intent to accelerate, notice of acceleration or any other
notice of any kind, all of which are hereby expressly waived by the Borrowers.
For purposes of this Section 6.1, any Reimbursement Obligation or Revolving
Credit Advances owed to an SPC shall be deemed to be owed to its Designating
Bank.

                                  ARTICLE VII

               THE AGENT; THE COLLATERAL AGENT; AND ISSUING BANKS

                  SECTION 7.1. Agent's and Collateral Agent's Authorization and
Action. Each Bank hereby appoints and authorizes the Agent and the Collateral
Agent to take such action respectively as agent and collateral agent on its
behalf and to exercise such powers under this Agreement and the other Credit
Documents as are delegated respectively to the Agent and to the Collateral Agent
by the terms hereof and thereof, together with such powers as are reasonably
incidental thereto. As to any matters not expressly provided for by the Credit
Documents (including enforcement of the terms of this Agreement or collection of
the Reimbursement Obligations or Notes, fees and any other amounts due and
payable pursuant to this Agreement), neither the Agent nor the Collateral Agent
shall be required to exercise any discretion or take any action, but shall be
required to act or to refrain from acting (and shall be fully protected in so
acting or refraining from acting) upon the instructions of the Majority Banks,
and such instructions shall be binding upon all Banks and all holders of Notes;
provided, however, that the neither the Agent nor the Collateral Agent shall be
required to take any action which exposes the Agent or the Collateral Agent to
personal liability or which is contrary to the Credit Documents or applicable
law. The Agent and the Collateral Agent agree to give to each Bank prompt notice
of each notice given to it by any Borrower pursuant to the terms of this
Agreement or any other Credit Document.

                  SECTION 7.2. Agent's and Collateral Agent's Reliance, Etc.
Neither the Agent nor the Collateral Agent nor any of their respective
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by them or under or in connection with this Agreement,
except for its or their own gross negligence or willful misconduct. Without
limitation of the generality of the foregoing, the Agent and the Collateral
Agent: (i) may consult with their respective legal counsel (including counsel
for any Borrower), independent public accountants and other experts selected by
them and shall not be liable for any action taken or omitted to be taken in good
faith by them in accordance with the advice of such counsel, accountants or
experts; (ii) make no warranty or representation to any Bank and shall not be
responsible to any Bank for any statements, warranties or representations
(whether written or oral) made in or in connection with this Agreement or any
other Credit Document; (iii) shall not have any duty to ascertain or to inquire
as to the performance or observance of any of the terms, covenants or conditions
of this Agreement or any other Credit Document on the part of any Borrower or to
inspect the property (including the books and records) of any Borrower; (iv)
shall not be responsible to any Bank for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement, any other
Credit Document or any other instrument or document furnished pursuant hereto or
thereto; (v) shall incur no liability under or

                                       39

<PAGE>

in respect of any Letter of Credit, Note or this Agreement by acting upon any
notice, consent, certificate or other instrument or writing (which may be by
telecopier, telegram, cable or telex) believed by them in their reasonable
judgement to be genuine and signed or sent by the proper party or parties; (vi)
may treat any Issuing Bank that issues or has issued a Letter of Credit as being
the issuer of such Letter of Credit for all purposes and (vii) may treat a Bank
as the obligee of any Revolving Credit Advance or, if applicable, the payee of
any Note as the holder thereof, until the Agent receives and accepts a Transfer
Agreement executed by a Borrower (if required pursuant to Section 8.5), the
assignor Bank and the assigning Bank pursuant to Section 8.5.

                  SECTION 7.3. Issuing Banks' Reliance, Etc. Neither the Issuing
Banks nor any directors, officers, agents or employees of the Issuing Banks
shall be liable for any action taken or omitted to be taken by any of them under
or in connection with this Agreement, except for its or their own gross
negligence or willful misconduct. The Issuing Banks shall not have, by reason of
this Agreement a fiduciary relationship in respect of any Bank; and nothing in
this Agreement, expressed or implied, is intended or shall be so construed as to
impose upon the Issuing Banks any obligations in respect of this Agreement
except as expressly set forth herein. Without limitation of the generality of
the foregoing, the Issuing Banks: (i) may consult with legal counsel (including
counsel for any Borrower), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (ii) make no warranty or representation to any Bank and
shall not be responsible to any Bank for any statements, warranties or
representations (whether written or oral) made in or in connection with this
Agreement or any other Credit Document; (iii) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of this Agreement or any other Credit Document on the
part of any Borrower or to inspect the property (including the books and
records) of any Borrower; (iv) shall not be responsible to any Bank for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value
of this Agreement or any other Credit Document or any other instrument or
document furnished pursuant hereto or thereto; and (v) shall incur no liability
under or in respect of any Letter of Credit or this Agreement by acting upon any
notice, consent, certificate or other instrument or writing (which may be by
telecopier, telegram, cable or telex) believed by it in its reasonable judgment
to be genuine and signed or sent by the proper party or parties.

                  SECTION 7.4. Rights. With respect to its Commitments, the
Revolving Credit Advances made by it and the Notes, if any, issued to it, or any
Letter of Credit Interest held by it, Citibank shall have the same rights and
powers under any such Note and this Agreement as any other Bank and may exercise
the same as though it was not the Agent and Collateral Agent; with respect to
its Letter of Credit Commitments, the Reimbursement Obligations owed to it, any
Letter of Credit Interest held by it, the Issuing Banks shall have the right and
power under this Agreement as any other Bank and may exercise the same as though
it was not an Issuing Bank, as the case may be. The term "Bank" or "Banks"
shall, unless otherwise expressly indicated, include each of the Issuing Banks
in their individual capacity. Citibank, each Issuing Bank and the respective
affiliates of each may accept deposits from, lend money to, act as trustee under
indentures of, and generally engage in any kind of business with, any Borrower,
any Person who may do business with or own, directly or indirectly, securities
of any Borrower and any other Person, all as if Citibank were not the Agent and
Collateral Agent and each Issuing Bank was not an Issuing Bank, in each case
without any duty to account therefor to the Banks.

                                       40

<PAGE>

                  SECTION 7.5. Indemnification. The Banks agree to indemnify the
Agent and the Collateral Agent (to the extent not reimbursed by the Borrowers),
ratably according to the respective Letter of Credit Interests then held by each
of them plus the respective principal amounts of the Revolving Credit Advances
owed to each of them (or if no Letter of Credit Interests or Revolving Credit
Advances are at the time outstanding, ratably according to their respective LC
Participation Percentage plus their Revolving Credit Commitments), from and
against any and all claims, damages, losses, liabilities and expenses (including
reasonable fees and disbursements of counsel) of any kind or nature whatsoever
which may be imposed on, incurred by, or asserted against either the Agent or
the Collateral Agent in any way relating to or arising out of this Agreement or
any other Credit Document or any action taken or omitted by the Agent or the
Collateral Agent under this Agreement or any other Credit Document (EXPRESSLY
INCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE ATTRIBUTABLE TO THE
ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE OF THE AGENT, BUT EXCLUDING ANY SUCH
CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE ATTRIBUTABLE TO THE GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT OF THE AGENT AND THE COLLATERAL AGENT). IT IS THE INTENT
OF THE PARTIES HERETO THAT THE AGENT AND THE COLLATERAL AGENT SHALL, TO THE
EXTENT PROVIDED IN THIS SECTION 7.5, BE INDEMNIFIED FOR RESPECTIVELY FOR THEIR
OWN ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE. Without limitation of the
foregoing, each Bank agrees to reimburse the Agent and the Collateral Agent
promptly upon demand for their respective ratable shares of any out-of-pocket
expenses (including counsel fees) incurred respectively by the Agent and the
Collateral Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under this Agreement or any other Credit Document to
the extent that the Agent and the Collateral Agent are not reimbursed for such
expenses by the Borrowers.

                  (a)      The Banks agree to indemnify each Issuing Bank (to
the extent not reimbursed by the Borrowers), ratably according to the respective
Letter of Credit Interests then held by each of them plus the respective
principal amounts so the Revolving Credit Advances owed to each of them (or if
no Letter of Credit Interests or Revolving Credit Advances are at the time
outstanding, ratably according to their respective LC Participation Percentage
plus their Revolving Credit Commitments), from and against any and all claims,
damages, losses, liabilities and expenses (including reasonable fees and
disbursements of counsel) of any kind or nature whatsoever which may be imposed
on, incurred by, or asserted against any Issuing Bank in any way relating to or
arising out of this Agreement or any other Credit Document or any action taken
or omitted by any Issuing Bank under this Agreement or any other Credit Document
(EXPRESSLY INCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE
ATTRIBUTABLE TO THE ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE OF ANY ISSUING
BANK, BUT EXCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE
ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH ISSUING
BANK). IT IS THE INTENT OF THE PARTIES HERETO THAT AN ISSUING BANK SHALL, TO THE
EXTENT PROVIDED IN THIS SECTION 7.5, BE INDEMNIFIED FOR ITS OWN ORDINARY, SOLE
OR CONTRIBUTORY NEGLIGENCE. Without limitation of the foregoing, each Bank
agrees to reimburse each Issuing Bank promptly upon demand for its

                                       41

<PAGE>

ratable share of ay out-of-pocket expenses (including counsel fees) incurred by
such Issuing Bank in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
renegotiations, legal proceedings or otherwise) of, or legal advice in respect
of rights or responsibilities under this Agreement or any other Credit Documents
to the extent that such Issuing Bank is not reimbursed for such expenses by the
Borrowers.

                  SECTION 7.6. Successor Agent and Collateral Agent. The Agent
and Collateral Agent may resign at any time respectively as Agent and Collateral
Agent under this Agreement by giving written notice thereof to the Banks and the
Borrowers and may be removed at any time with or without cause by the Majority
Banks; provided, however, that any removal of the Agent will not be effective
until it has also been replaced as Collateral Agent. Upon any such resignation
or removal, the Majority Banks shall have the right to appoint, with the consent
of the Borrowers (which consent shall not be unreasonably withheld and shall not
be required if an Event of Default exists), a successor Agent and Collateral
Agent from among the Banks. If no successor Agent and Collateral Agent shall
have been so appointed by the Majority Banks with such consent, and shall have
accepted such appointment, within 30 days after the respective retiring Agent's
or Collateral Agent's giving of notice of resignation or the Majority Banks'
removal of the retiring Agent or Collateral Agent, then the retiring Agent or
Collateral Agent may, on behalf of the Banks, appoint respectively a successor
Agent or Collateral Agent, which shall be a Bank which is a commercial bank
organized under the laws of the United States of America or of any State thereof
and having a combined capital and surplus of at least $500,000,000. Upon the
acceptance of any appointment as Agent or Collateral Agent under this Agreement
by respectively a successor Agent or Collateral Agent, such successor Agent or
Collateral Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent or Collateral Agent
and shall function as the Agent or Collateral Agent under this Agreement, and
the retiring Agent or Collateral Agent shall be discharged from its duties and
obligations as Agent or Collateral Agent under this Agreement. After any
retiring Agent's or Collateral Agent's resignation or removal hereunder
respectively as Agent or Collateral Agent, the provisions of this Article VII
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Agent or Collateral Agent under this Agreement.

                  SECTION 7.7. Bank Credit Decision. Each of the Banks
acknowledges that it has, independently and without reliance upon the Collateral
Agent, the Agent, the Documentation Agent, the Co-Lead Arrangers, the Issuing
Banks or any other Bank and based on the financial statements referred to in
Section 4.1(e) and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each of the Banks and the other beneficiaries of any Security
Agreement parties hereto (both on its own behalf and on behalf of any of its
Affiliates that is a beneficiary of any Security Agreement) also acknowledges
that it will, independently and without reliance upon the Collateral Agent, the
Agent, the Documentation Agent, the Co-Lead Arrangers, the Issuing Banks or any
other Bank and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement and the other Credit Documents. The
Collateral Agent shall not have any duty or responsibility, either initially or
on a continuing basis, to provide any Person with any

                                       42

<PAGE>

credit or other information with respect thereto, whether coming into its
possession before the issuance of any Letter of Credit or at any time or times
thereafter.

                  SECTION 7.8. Certain Rights of the Collateral Agent. If the
Collateral Agent shall request instructions from the Majority Banks with respect
to any act or action (including failure to act) in connection with this
Agreement or any other Credit Document, the Collateral Agent shall be entitled
to refrain from such act or taking such action unless and until the Collateral
Agent shall have received instructions from the Majority Banks; and it shall not
incur liability to any Person by reason of so refraining. Without limiting the
foregoing, no Bank nor any beneficiary of any Security Agreement shall have any
right of action whatsoever against the Collateral Agent as a result of its
acting or refraining from acting hereunder or under any other Credit Document in
accordance with the instructions of the Majority Banks or all of the Banks, as
the case may be. Furthermore, except for action expressly required of the
Collateral Agent hereunder, the Collateral Agent shall in all cases be fully
justified in failing or refusing to act hereunder unless it shall be
specifically indemnified to its satisfaction by the Banks against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.

                  SECTION 7.9. Other Agents. The other agents, Documentation
Agent and the Co-Lead Arrangers have no duties or obligations under this
Agreement. None of the other agents, the Documentation Agent or the Co-Lead
Arrangers shall have, by reason of this Agreement or the other Credit Documents,
a fiduciary relationship in respect of any Bank, and nothing in this Agreement
or other Credit Documents, express or implied, is intended or shall be so
construed to impose on any of the other agents, the Documentation or the Co-Lead
Arrangers any obligation in respect of this Agreement or other Credit Documents.

                                  ARTICLE VIII

                                  MISCELLANEOUS

                  SECTION 8.1. Amendments, Etc. No amendment or waiver of any
provision of this Agreement, nor consent to any departure by any Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Majority Banks, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver or consent shall, unless in
writing and signed by all the Banks, do any of the following: (a) except as
provided in Section 3.1(i), waive any of the conditions specified in Article
III, (b) increase the Commitments of the Banks or the Letter of Credit
Commitments of the Issuing Banks or subject any Bank to any additional
obligation, (c) reduce the Reimbursement Obligations, (d) reduce the principal
of, or interest on (other than any interest pursuant to Section 2.13(b)), the
Revolving Credit Advances or any fees or other amounts payable hereunder, (e)
postpone any date fixed for any payment of the Reimbursement Obligations,
Revolving Credit Advances or any fees or other amounts payable hereunder, (f)
change the definition of Majority Banks or otherwise change the LC Participation
Percentages, the percentage of the Commitments or of the aggregate unpaid
principal amount of the Revolving Credit Advances, Letter of Credit Liabilities
or the Reimbursement Obligations, or the number of Banks, which shall be
required for the Banks or any of them to take any action under this Agreement,
(g) release any of the Collateral, except as set forth in the Security

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<PAGE>

Agreement or Section 2.2(c), (h) amend, waive any provision of, or consent to
any departure by any Borrower from Section 2.5(b), Section 2.9 or this Section
8.1, (i) decrease the percentage set forth in the definition of "Collateral
Coverage Requirement" or (j) amend or modify the definition of "Collateral" as
defined herein or as defined in the Security Agreement; and provided further
that no amendment, waiver or consent shall, unless in writing and signed by the
Agent in addition to the Banks required above to take such action, affect the
rights or duties of the Agent under any Credit Document; and provided further
that no amendment, waiver or consent shall, unless in writing and signed by each
Issuing Bank in addition to the Banks required above to take such action, affect
the rights or duties of any Issuing Bank under any Credit Document; and provided
further that no amendment, waiver or consent shall, unless in writing and signed
by the Collateral Agent in addition to the Banks required above to take such
action, affect the rights or duties of the Collateral Agent under any Credit
Document.

                  SECTION 8.2. Notices, Etc. All notices and other
communications provided for hereunder shall be either (x) in writing (including
telecopy communication) and mailed, telecopied or delivered or (y) as and to the
extent set forth in Section 8.2(b) and in the provisos to this Section 8.2(a),
in an electronic medium and delivered, as set forth in Section 8.2(b), if to any
Bank, as specified opposite its name on Schedule I hereto or specified in a
Transfer Agreement for any assignee Bank delivered pursuant to Section 8.5(a);
if to a Borrower, as specified opposite its name on Schedule II hereto; if to an
Issuing Bank to its address as specified opposite its name on Schedule I; and if
to Citibank, as Agent or Collateral Agent, to its address at 2 Penns Way, Suite
200, New Castle, Delaware 19720 (telecopier number: (302) 894-6120), Attention:
Williams Account Officer, with a copy to Citicorp North America, Inc., 1200
Smith Street, Suite 2000, Houston, Texas 77002 (telecopier number: (713)
654-2849), Attention: The Williams Companies, Inc. Account Officer, or, as to
any Borrower, any Issuing Bank, the Collateral Agent, or the Agent, at such
other address as shall be designated by such party in a written notice to the
other parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to any Borrower, each Issuing Bank,
the Collateral Agent and the Agent; provided that materials required to be
delivered pursuant to Section 5.1(b)(ii), (iii) and (iv) shall be delivered to
the Agent as specified in Section 8.2(b) or as otherwise specified to any
Borrower by the Agent; provided, further, that any communication that (A)
relates to a request for a new, or a conversion of an existing, borrowing or
other extension of credit (including any election of an interest rate or
interest period relating thereto), (B) relates to the payment of any principal
or other amount due under the Credit Agreement prior to the scheduled date
therefor, (C) provides notice of any Default or Event of Default under the
Credit Agreement or (D) is required to be delivered to satisfy any condition
precedent to the effectiveness of the Credit Agreement and/or any borrowing or
other extension of credit thereunder, shall be in writing (including telecopy
communication) and mailed, telecopied or delivered pursuant to this Section
8.2(a). All such notices and communications shall, when mailed, telecopied or
e-mailed, be effective when received in the mail, sent by telecopier to any
party to the telecopier number as set forth herein or on Schedule I or Schedule
II or specified in a Transfer Agreement for any assignee Bank delivered pursuant
to Section 8.5(a) (or other telecopy number specified by such party in a written
notice to the other parties hereto) or confirmed by e-mail, respectively, except
that notices and communications to the Agent shall not be effective until
received by the Agent. Any notice or communication to a Bank shall be deemed to
be a notice or communication to any SPC designated by such Bank and no further
notice to an SPC shall be required. Delivery by telecopier of an executed
counterpart of this Agreement or of any amendment or waiver of any

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<PAGE>

provision of this Agreement or any other Credit Document (other than a Letter of
Credit) shall be effective as delivery of a manually executed counterpart
thereof.

                  (a)      So long as Citibank is the Agent, materials required
to be delivered pursuant to Section 5.1(b)(ii), (iii) and (iv) may be delivered
to the Agent (x) in an electronic medium in a format acceptable to the Agent and
the Lenders by e-mail at oploanswebadmin@citigroup.com or (y) in accordance with
Section 8.2(a)(x). The Borrowers agree that the Agent may make such materials,
as well as any other written information, documents, instruments and other
material relating to any Borrower, any Subsidiaries or any other materials or
matters relating to this Agreement, the Notes or any of the transactions
contemplated hereby (collectively, the "Communications") available to the Banks
by posting such notices on "e-Disclosure" (the "Platform"), the Agent's internet
delivery system that is part of Fixed Income Direct, Global Fixed Income's
primary web portal. Although the primary web portal is secured with a dual
firewall and a User ID/Password Authorization System and the Platform is secured
through a single user per deal authorization method whereby each user may access
the Platform only on a deal-by-deal basis, the Borrowers acknowledge that (i)
the distribution of material through an electronic medium is not necessarily
secure and that there are confidentiality and other risks associated with such
distribution, (ii) the Platform is provided "as is" and "as available" and (iii)
neither the Agent nor any of its Affiliates warrants the accuracy, adequacy or
completeness of the Communications or the Platform and each expressly disclaims
liability for errors or omissions in the Communications or the Platform. No
warranty of any kind, express, implied or statutory, including, without
limitation, any warranty of merchantability, fitness for a particular purpose,
non-infringement of third party rights or freedom from viruses or other code
defects, is made by the Agent or any of its Affiliates in connection with the
Platform.

                  (b)      Each Bank agrees that notice to it (as provided in
the next sentence) (a "Notice") specifying that any Communications have been
posted to the Platform shall constitute effective delivery of such information,
documents or other materials to such Bank for purposes of this Agreement;
provided that, if requested by any Bank, the Agent shall deliver a copy of the
Communications to such Bank by e-mail or telecopier. Each Bank agrees (i) to
notify the Agent in writing of such Bank's e-mail address to which a Notice may
be sent by electronic transmission (including by electronic communication) on or
before the date such Bank becomes a party to this Agreement (and from time to
time thereafter to ensure that the Agent has on record an effective e-mail
address for such Bank) and (ii) that any Notice may be sent to such e-mail
address.

                  SECTION 8.3. No Waiver; Remedies. No failure on the part of
any Bank, the Collateral Agent, any Issuing Bank, any Issuing Bank or the Agent
to exercise, and no delay in exercising, any right under this Agreement or any
other Credit Document shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies provided in this
Agreement are cumulative and not exclusive of any remedies provided by law.

                                       45

<PAGE>

                  SECTION 8.4. Costs and Expenses.

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

                  (b)      Each Borrower agrees, to the fullest extent permitted
by law, to indemnify and hold harmless the Agent, the Collateral Agent, the
Documentation Agent, the Issuing Banks, other agents, the Co-Lead Arrangers and
each Bank and each of their respective directors, officers, employees and agents
(the "Indemnified Parties") from and against any and all claims, damages,
losses, liabilities and expenses (including, without limitation, reasonable fees
and disbursements of counsel) of any kind or nature whatsoever for which any of
them may become liable or which may be incurred by or asserted against any of
the Indemnified Parties (other than by another Bank or any successor or assign
of another Bank), in each case in connection with or arising out of or by reason
of any investigation, litigation, or proceeding, whether or not any of the
Indemnified Parties is a party thereto, arising out of, related to or in
connection with the Notes, any Letter of Credit, this Agreement, any Credit
Document or any transaction in which any proceeds of all or any part of Letters
of Credit or Revolving Credit Advances are applied (EXPRESSLY INCLUDING ANY SUCH
CLAIM, DAMAGE, LOSS, LIABILITY OR EXPENSE ATTRIBUTABLE TO THE ORDINARY, SOLE OR
CONTRIBUTORY NEGLIGENCE OF SUCH INDEMNIFIED PARTY, BUT EXCLUDING ANY SUCH CLAIM,
DAMAGE, LOSS, LIABILITY OR EXPENSE ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PARTY OR THE GROSS NEGLIGENCE OR WILFUL
MISCONDUCT OF THE AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS OF SUCH
INDEMNIFIED PARTY). IT IS THE INTENT OF THE PARTIES HERETO THAT EACH INDEMNIFIED
PARTY SHALL, TO THE EXTENT PROVIDED IN THIS SECTION 8.4(b), BE INDEMNIFIED FOR
ITS OWN ORDINARY, SOLE OR CONTRIBUTORY NEGLIGENCE.

                  (c)      If any payment of principal of, or Conversion of, any
Eurodollar Rate Advance is made by any Borrower to or for the account of a Bank
other than on the last day of the Interest Period for such Eurodollar Rate
Advance, as a result of a payment, prepayment or Conversion pursuant to this
Agreement or acceleration of the maturity of the Notes pursuant to

                                       46

<PAGE>

Section 6.1, such Borrower shall, upon demand by such Bank (with a copy of such
demand to the Agent), pay to the Agent for the account of such Bank any amounts
required to compensate such Bank for any additional losses, costs or expenses
that it may reasonably incur as a result of such payment or Conversion,
including, without limitation, any loss (excluding loss of anticipated profits),
cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by any Bank to fund or maintain such Eurodollar
Rate Advance.

                  (d)      Without prejudice to the survival of any other
agreement of the Borrowers hereunder, the agreements and obligations of the
Borrowers contained in Sections 2.2, 2.6 and 2.8 and this Section 8.4 shall
survive the payment in full of principal, interest and all other amounts payable
hereunder and under the Notes.

                  SECTION 8.5. Binding Effect; Transfers.

                  (a)      This Agreement shall become effective (other than
Article II, which shall become effective upon satisfaction of the conditions
precedent set forth in Section 3.1) when it shall have been executed by the
Borrowers, the Agent, the Collateral Agent and the Issuing Banks, and when each
Bank listed on the signature pages hereof has delivered an executed counterpart
hereof to the Agent, has sent to the Agent a facsimile copy of its signature
hereon or has notified the Agent that such Bank has executed this Agreement and
thereafter shall be binding upon and inure to the benefit of the Borrowers, the
Agent, the Collateral Agent, the Issuing Banks and each Bank and their
respective successors and assigns; provided that the Borrowers shall not have
the right to assign any of their rights hereunder or any interest herein without
the prior written consent of the Agent. Each Bank may assign to one or more
banks, financial institutions or other entities all or a portion of its rights
and obligations under this Agreement (including all or a portion of its
Revolving Credit Advances owing to such Bank, any Note or Notes held by such
Bank, its Letter of Credit Commitments, its Letter of Credit Interest and any or
all of its Commitments); provided, however, that (i) each such assignment shall
be of a constant, and not a varying, percentage of all rights and obligations
under this Agreement and the Notes, (ii) except in the case of an assignment of
all of a Bank's rights and obligations under this Agreement or an assignment to
another Bank, the amount of the Commitment, Letter of Credit Commitment and/or
LC Participation Percentage of the assigning Bank being assigned pursuant to
each such assignment (determined as of the date of the Transfer Agreement with
respect to such assignment) shall in no event be less than $10,000,000 in the
aggregate or such lesser amount as may be consented to by the Agent and the
respective Borrowers, (iii) each such assignment shall be to an Eligible
Assignee, and (iv) the parties to each such assignment shall execute and deliver
to the Agent, for its acceptance and recording in the Register maintained by the
Agent, a Transfer Agreement and, unless the assignment is to an affiliate of
such Bank, a processing and recordation fee of $3,500. Upon such execution,
delivery, acceptance and recording, from and after the effective date specified
in each Transfer Agreement, (x) the assignee thereunder shall be a party hereto
as a "Bank" and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Transfer Agreement, have the rights and
obligations of a Bank hereunder (including obligations to the Agent and the
Collateral Agent pursuant to Section 7.6) and (y) the Bank assignor thereunder
shall, to the extent that rights and obligations hereunder have been assigned by
it pursuant to such Transfer Agreement, relinquish its rights and be released
from its obligations under this Agreement, except for rights and obligations
which continue after repayment of the Reimbursement Obligations and

                                       47

<PAGE>

Revolving Credit Advances or termination of this Agreement pursuant to the
express terms of this Agreement (and, in the case of a Transfer Agreement
covering all of an assigning Bank's rights and obligations under this Agreement,
such Bank shall cease to be a party hereto).

                  (b)      By executing and delivering a Transfer Agreement, the
Bank assignor thereunder and the assignee thereunder confirm to and agree with
each other and the other parties hereto as follows: (i) other than as provided
in such Transfer Agreement, such assigning Bank makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations (whether written or oral) made in or in connection
with this Agreement, any other Credit Document or any other instrument or
document furnished pursuant hereto or in connection herewith, the perfection,
existence, sufficiency or value of any Collateral or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of any Credit
Document or any other instrument or document furnished pursuant hereto or in
connection herewith; (ii) such assigning Bank makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of any Borrower or any other Person or the performance or observance by any
Borrower or any other Person of any of its respective obligations under the
Credit Documents or any other instrument or document furnished pursuant hereto
or in connection herewith; (iii) such assignee confirms that it has received a
copy of this Agreement, together with copies of such financial statements and
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into such Transfer Agreement; (iv)
such assignee will, independently and without reliance upon the Agent, the
Collateral Agent, any Issuing Bank, such assigning Bank or any other Bank and
based on such financial statements and such other documents and information as
it shall deem appropriate at the time, continue to make its own credit analysis
and decisions in taking or not taking action under this Agreement, any of the
other Credit Documents or any other instrument or document; (v) such assignee
confirms that it is an Eligible Assignee; (vi) such assignee appoints and
authorizes the Agent and the Collateral Agent, respectively, to act as Agent and
the Collateral Agent, respectively, on its behalf and to exercise such powers
and discretion under this Agreement, any other Credit Document or any other
document executed in connection herewith or therewith as are delegated to the
Agent and the Collateral Agent, respectively, by the terms hereof or thereof,
together with such powers and discretion as are reasonably incidental thereto;
and (vii) such assignee agrees that it will perform in accordance with their
terms all of the obligations which by the terms of this Agreement are required
to be performed by it as a Bank.

                  (c)      The Agent shall maintain a copy of each Transfer
Agreement, delivered to and accepted by it and a register for the recordation of
the names and addresses of each Bank together with its respective Commitment,
Letter of Credit Commitment, LC Participation Percentage, Letter of Credit
Interest and the principal amount of the Revolving Credit Advances owing to such
Bank from time to time (the "Register"). The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrowers, the Agent, the Issuing Banks and the Banks may treat each Person
whose name is recorded in the Register as a Bank hereunder for all purposes of
this Agreement. The Register shall be available for inspection by any Borrower
or any Bank at any reasonable time and from time to time upon reasonable prior
notice.

                  (d)      Upon its receipt of a Transfer Agreement executed and
completed by an assigning Bank and an assignee representing that it is an
Eligible Assignee (and consented to by

                                       48

<PAGE>

the Agent and, if required, by the applicable Borrower), the Agent shall (i)
accept such Transfer Agreement, (ii) record the information contained therein in
the Register and (iii) give prompt notice thereof to such Borrower. If requested
by the assigning or assignee Bank, each Borrower after its receipt of such
notice, shall, at its own expense, execute and deliver to the Agent in exchange
for the surrendered Notes, new Notes to the order of such assignee Bank in an
amount equal to the Commitment assumed by it pursuant to such Transfer Agreement
and, if the assigning Bank has retained a Commitment hereunder new Notes to the
order of the assigning Bank in an amount equal to the Commitment retained by it
hereunder. Such new Notes shall be in an aggregate principal amount equal to the
aggregate principal amount of such surrendered Notes, shall be dated the
effective date of such Transfer Agreement and shall otherwise be in
substantially the form of Exhibit F hereto

                  (e)      Each Bank may sell participations to one or more
banks or other entities (other than the Borrowers or any of their Affiliates) in
or to all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment, the Revolving Credit Advances
owing to it, the Notes held by it and its Letter of Credit Interest); provided,
however, that (i) such Bank's obligations under this Agreement shall remain
unchanged, (ii) such Bank shall remain solely responsible to the other parties
hereto for the performance of such obligations, (iii) such Bank shall remain the
holder of any such Note for all purposes of this Agreement, (iv) the Borrowers,
the Agent, the Collateral Agent, each Issuing Bank and the other Banks shall
continue to deal solely and directly with such Bank in connection with such
Bank's rights and obligations under this Agreement, (v) all amounts payable
under this Agreement shall be calculated as if such Bank had not sold such
participation, and (vi) the terms of any such participation shall not restrict
such Bank's ability to consent to any departure by any Borrower herefrom without
the approval of the participant, except that the approval of the participant may
be required to the extent that such amendment, waiver or consent would reduce
the principal of, or interest on, the Reimbursement Obligations or Revolving
Credit Advances or any fees or other amounts payable hereunder, in each case to
the extent subject to such participation, or postpone any date fixed for any
payment of principal of, or interest on, the Reimbursement Obligations or
Revolving Credit Advances or any fees or other amounts payable hereunder, in
each case to the extent subject to such participation.

                  (f)      Notwithstanding any other provisions set forth in
this Agreement, any Bank may at any time create a security interest in all or
any portion of its rights under this Agreement (including its Letter of Credit
Interest) or any of its Notes in favor of any Federal Reserve Bank in accordance
with Regulation A of the Federal Reserve Board without notice to or consent of
the Borrowers or the Agent. Furthermore, any Bank may assign, as collateral or
otherwise, any of its rights (including rights to payments of principal of
and/or interest on its Letter of Credit Interest or Revolving Credit Advances
made by such Bank) under this Agreement, its Notes or any of its Letter of
Credit Interest to any Federal Reserve Bank without notice to or consent of any
Borrowers or the Agent.

                  (g)      Notwithstanding anything to the contrary contained
herein, any Bank (a "Designating Bank") with the consent of the Agent (and, if
no Event of Default has occurred and is continuing, the Borrowers) may grant to
a special purpose funding vehicle (an "SPC"), identified as such in writing from
time to time by the Designating Bank to the Agent and the Borrowers, the option
to fund all or any part of any payment to any Issuing Bank or Revolving

                                       49

<PAGE>

Credit Advance which the Designating Bank has agreed to make; provided that no
Designating Bank shall have granted at any one time such option to more than one
SPC; and provided further that (i) such Designating Bank's obligations under
this Agreement shall remain unchanged, (ii) such Designating Bank shall remain
solely responsible to the other parties hereto for the performance of such
obligations, (iii) the Borrowers, the Issuing Banks, the Collateral Agent, the
Agent and the other Banks shall continue to deal solely and directly with such
Designating Bank in connection with such Designating Bank's rights and
obligations under this Agreement, (iv) any such option granted to an SPC shall
not constitute a commitment by such SPC to fund any drawing under a Letter of
Credit or to fund any Revolving Credit Advance, and (v) neither the grant nor
the exercise of such option to an SPC shall increase the costs or expenses or
otherwise increase or change the obligations of a Borrower under this Agreement
(including its obligations under Section 2.7). The issuance of a Letter of
Credit or the making of a Revolving Credit Advance by an SPC hereunder shall
utilize the Commitment of the Designating Bank to the same extent, and as if,
such Revolving Credit Advance were made by or such Letter of Credit were issued
by such Designating Bank. Each party hereto hereby agrees that no SPC shall be
liable for any indemnity or similar payment obligation under this Agreement to
the extent that any such indemnity or similar payment obligations shall have
been paid by its Designating Bank. In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior indebtedness
of any SPC, it will not institute against, or join any other person in
instituting against such SPC any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under the laws of the United States. In
addition, notwithstanding anything to the contrary contained in this Section
8.5, an SPC may not assign its interest in any Letter of Credit Interests or
Revolving Credit Advance except that, with notice to, but without the prior
written consent of, the Borrowers and the Agent and without paying any
processing fee therefor, such SPC may assign all or a portion of its interests
in any Letter of Credit Interests or Revolving Credit Advance to the Designating
Bank or to any financial institutions (consented to by the Borrowers and Agent),
providing liquidity and/or credit support to or for the account of such SPC to
support the funding or maintenance of Letter of Credit Interests or Revolving
Credit Advance. Each Designating Bank shall serve as the agent of its SPC and
shall on behalf of its SPC: (i) receive any and all payments made for the
benefit of such SPC and (ii) give and receive all communications and notices,
and vote, approve or consent hereunder, and take all actions hereunder,
including votes, approvals, waivers, consents and amendments under or relating
to this Agreement, the Notes and the other Credit Documents. Any such notice,
communication, vote, approval, waiver, consent or amendment shall be signed by
the Designating Bank for the SPC and need not be signed by such SPC on its own
behalf. The Borrowers, the Issuing Banks, the Collateral Agent, the Agent and
the Banks may rely thereon without any requirement that the SPC sign or
acknowledge the same or that notice be delivered to the Borrowers or the SPC.
This Section 8.5(g) may not be amended without the written consent of any SPC,
which shall have been identified to the Agent and the Borrowers.

                  SECTION 8.6. Governing Law. This Agreement, the Notes and the
other Credit Documents shall be governed by, and construed in accordance with,
the laws of the State of New York.

                                       50

<PAGE>

                  SECTION 8.7. Interest. It is the intention of the parties
hereto that the Agent, each Issuing Bank, the Collateral Agent and each Bank
shall conform strictly to usury laws applicable to it, if any. Accordingly, if
the transactions with the Agent, any Issuing Bank, the Collateral Agent or any
Bank contemplated hereby would be usurious under applicable law, then, in that
event, notwithstanding anything to the contrary in this Agreement or any other
agreement entered into in connection with or as security for this Agreement, it
is agreed as follows: (i) the aggregate of all consideration which constitutes
interest under applicable law that is contracted for, taken, reserved, charged
or received by the Agent, such Issuing Bank, the Collateral Agent or such Bank,
as the case may be, under this Agreement, the Notes and any other Credit
Document or under any other agreement entered into in connection with or as
security for this Agreement, the Notes or the other Credit Documents shall under
no circumstances exceed the maximum amount allowed by such applicable law and
any excess shall be canceled automatically and, if theretofore paid, shall at
the option of the Agent, such Issuing Bank, the Collateral Agent or such Bank,
as the case may be, be credited by the Agent, such Issuing Bank, the Collateral
Agent or such Bank, as the case may be, on the principal amount of the
obligations owed to the Agent, such Issuing Bank, the Collateral Agent or such
Bank, as the case may be, by the applicable Borrower or refunded by the Agent,
such Issuing Bank, the Collateral Agent or such Bank, as the case may be, to the
applicable Borrower, and (ii) in the event that the maturity of any obligation
payable to the Agent, such Issuing Bank, the Collateral Agent or such Bank, as
the case may be, is accelerated or in the event of any required or permitted
prepayment, then such consideration that constitutes interest under law
applicable to the Agent, such Issuing Bank, the Collateral Agent or such Bank,
as the case may be, may never include more than the maximum amount allowed by
such applicable law and excess interest, if any, to the Agent, such Issuing
Bank, the Collateral Agent or such Bank, as the case may be, provided for in
this Agreement or otherwise shall be canceled automatically as of the date of
such acceleration or prepayment and, if theretofore paid, shall, at the option
of the Agent, such Issuing Bank, the Collateral Agent or such Bank, as the case
may be, be credited by the Agent, such Issuing Bank, the Collateral Agent or
such Bank, as the case may be, on the principal amount of the obligations owed
to the Agent, such Issuing Bank, the Collateral Agent or such Bank, as the case
may be, by the Borrowers or refunded by the Agent, such Issuing Bank, the
Collateral Agent or such Bank, as the case may be, to the applicable Borrower.

                  SECTION 8.8. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.

                  SECTION 8.9. Survival of Agreements, Representations and
Warranties, Etc. All warranties, representations and covenants made by any
Borrower or any officer of any Borrower herein or in any certificate or other
document delivered in connection with this Agreement shall be considered to have
been relied upon by the Banks and shall survive the issuance of any Letters of
Credit and the issuance and delivery of the Notes (if any) and the making of
Revolving Credit Advances regardless of any investigation.

                  SECTION 8.10. Confidentiality.

                                       51

<PAGE>

                  (a)      Subject to paragraph (b) below, each Bank agrees that
it will not disclose without the prior consent of TWC (other than to employees,
auditors, accountants, counsel or other professional advisors of the Agent or
any Bank) any information with respect to the Borrowers, which is furnished
pursuant to this Agreement and which (i) the Borrowers in good faith considers
to be confidential and (ii) is either clearly marked confidential or is
designated by the Borrowers to the Agent and the Banks in writing as
confidential; provided that any Bank may disclose any such information (1) as
has become generally available to the public, (2) as may be required or
appropriate in any report, statement or testimony submitted to or required by
any municipal, state or Federal regulatory body having or claiming to have
jurisdiction over such Bank or submitted to or required by the Federal Reserve
Board or the Federal Deposit Insurance Corporation or similar organizations
(whether in the United States or elsewhere) or their successors, (3) as may be
required or appropriate in response to any summons or subpoena in connection
with any litigation, (4) in order to comply with any law, order, regulation or
ruling applicable to such Bank, (5) to the prospective transferee or grantee in
connection with any contemplated transfer of any of the Commitments, Letter of
Credit Commitments, Letter of Credit Interests or Revolving Credit Advances or
any interest therein by such Bank or the grant of an option to an SPC to fund
any drawing under a Letter of Credit or Revolving Credit Advance; provided that
such prospective transferee executes an agreement with or for the benefit of the
Borrowers containing provisions substantially identical to those contained in
this Section 8.10; and provided further that if the contemplated transfer is a
grant of an option to fund a drawing under a Letter of Credit or Revolving
Credit Advance to an SPC pursuant to Section 8.5(g), such SPC may disclose (x)
on a confidential basis, any non-public information relating to such drawings
funded by it to any rating agency, commercial paper dealer or provider of any
surety, guaranty or credit or liquidity enhancement to such SPC, and (y) if
prior notice of the delivery thereof is given to the Borrowers, such information
as may be required by law or regulation to be delivered, (6) in connection with
the exercise of any remedy by such Bank following an Event of Default pertaining
to this Agreement, any of the Notes or any of the other Credit Documents or any
other document delivered in connection herewith, (7) in connection with any
litigation involving such Bank pertaining to this Agreement, any of the Notes or
any of the other Credit Documents or any other document delivered in connection
herewith, (8) to any Bank, any Issuing Bank, the Collateral Agent or the Agent,
or (9) to any affiliate of any Bank; provided that such affiliate executes an
agreement with or for the benefit of the Borrowers containing provisions
substantially identical to those contained in this Section 8.10.

                  (b)      Notwithstanding anything herein or in any of the
other Credit Documents to the contrary, the Borrowers, the Agent and each Bank
(and each employee, representative or other agent of any such Person) may
disclose to any and all Persons, without limitation of any kind, the tax
treatment and tax structure of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analyses) that are
provided to such Person relating to such tax treatment and tax structure. For
purposes of this Section 8.11(b), "tax treatment" means the purported or claimed
U.S. federal income tax treatment of the transaction, and "tax structure" means
any fact that may be relevant to understanding the purported or claimed U.S.
federal income tax treatment of the transaction. The authorization to disclose
the tax treatment and tax structure of the transactions contemplated hereby
contained in the first sentence was applicable immediately upon commencement of
discussions between the Borrowers, the Agent and the Banks with respect to the
transactions contemplated hereby.

                                       52

<PAGE>

                  SECTION 8.11. Waiver of Jury Trial. THE BORROWERS, THE AGENT,
THE COLLATERAL AGENT, THE ISSUING BANK AND THE BANKS HEREBY IRREVOCABLY WAIVE
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OF THE NOTES, ANY LETTER OF CREDITS, ANY OTHER
CREDIT DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

                  SECTION 8.12. Severability. In the event any one or more of
the provisions contained in this Agreement or in any other Credit Document
should be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and
therein shall not in any way be affected or impaired thereby. The parties shall
endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

                  SECTION 8.13. Forum Selection and Consent to Jurisdiction. ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, ANY
CREDIT DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE AGENT, THE BANKS, ANY ISSUING BANK,
THE COLLATERAL AGENT OR THE BORROWERS IN CONNECTION HEREWITH OR THEREWITH MAY BE
BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE
COUNTY OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT
AGAINST ANY COLLATERAL MAY BE BROUGHT, AT THE AGENT'S OPTION, IN THE COURTS OF
ANY JURISDICTION WHERE SUCH COLLATERAL MAY BE FOUND. THE BORROWERS IRREVOCABLY
CONSENT TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY
PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR
NOTICES SPECIFIED IN ACCORDANCE WITH SECTION 8.2. THE BORROWERS HEREBY EXPRESSLY
AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION
WHICH THEY MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY
SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT
ANY BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY
COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT
PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO
ITSELF OR ITS PROPERTY, SUCH BORROWER HEREBY IRREVOCABLY WAIVES TO THE FULLEST
EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THE
CREDIT DOCUMENTS.

                  SECTION 8.14. Nature of Obligations. Notwithstanding anything
in this Agreement to the contrary, (a) NWP and TGPL shall be obligated only with
respect in each case

                                       53

<PAGE>

for the Revolving Credit Advances made to such Borrower (and all interest and
fees thereto) under Section 2.1(a) and the Reimbursement Obligations and fees
with respect to the Letters of Credit issued for the account of such Borrower
pursuant to Section 2.1(b) and (b) TWC shall be obligated for all obligations of
each Borrower hereunder.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       54

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.

                                       BORROWERS:

                                       THE WILLIAMS COMPANIES, INC.

                                       By:    /s/ Steven J. Malcolm
                                       Name:  Steven J. Malcolm
                                       Title: Chief Executive Officer, Chairman
                                              of the Board, and President

                                       NORTHWEST PIPELINE CORPORATION

                                       By:    /s/ J. Douglas Whisenant
                                       Name:  J. Douglas Whisenant
                                       Title: Senior Vice President

                                       TRANSCONTINENTAL GAS PIPE LINE
                                       CORPORATION

                                       By:    /s/ J. Douglas Whisenant
                                       Name:  J. Douglas Whisenant
                                       Title: Senior Vice President

                                       CITIBANK, N.A., as Administrative Agent
                                       and Collateral Agent

                                       By:    /s/ J. Chris Lyons
                                       Name:  J. Chris Lyons
                                       Title: Vice President

                                       CITIBANK, N.A. as Issuing Bank and Bank

                                       By:    /s/ J. Chris Lyons
                                       Name:  J. Chris Lyons
                                       Title: Vice President

                                       BANK OF AMERICA, N.A., as Syndication
                                       Agent

                                       By:    /s/ Claire Liu
                                       Name:  Claire M. Liu
                                       Title: Managing Director

                                       55

<PAGE>

                                       BANK OF AMERICA, N.A., as Issuing Bank
                                       and Bank

                                       By:    /s/ Claire Liu
                                       Name:  Claire M. Liu
                                       Title: Managing Director

                                       JPMORGAN CHASE BANK, as Documentation
                                       Agent and Bank

                                       By:    /s/ Robert Traband
                                       Name:  Robert W. Traband
                                       Title: Vice President

                                       THE BANK OF NOVA SCOTIA, as Bank

                                       By:    /s/ N. Bell
                                       Name:  N. Bell
                                       Title: Senior Manager

                                       BARCLAYS BANK PLC, as Bank

                                       By:    /s/ Nicholas A. Bell
                                       Name:  Nicholas A. Bell
                                       Title: Director, Loan Transaction
                                              Management

                                       THE ROYAL BANK OF SCOTLAND PLC, as Bank

                                       By:    /s/ P. J. Dundee
                                       Name:  Patricia J. Dundee
                                       Title: Senior Vice President

                                       CREDIT LYONNAIS NEW YORK BRANCH, as Bank

                                       By:    /s/ O. Audemard
                                       Name:  Olivier Audemard
                                       Title: Senior Vice President

                                       56

<PAGE>

                                       LEHMAN COMMERICAL PAPER, INC., as Bank

                                       By:    /s/ G. Andrew Keith
                                       Name:  G. Andrew Keith
                                       Title: Authorized Signatory

                                       TORONTO DOMINION (TEXAS), INC., as Bank

                                       By:    /s/ Jill Hall
                                       Name:  Jill Hall
                                       Title: Vice President

                                       WESTLB AG, NEW YORK BRANCH, as Bank

                                       By:    /s/ S. Battinelli
                                       Name:  Sal Battinelli
                                       Title: Managing Director

                                       By:    /s/ Duncan Robertson
                                       Name:  Duncan Robertson
                                       Title: Executive Director

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

                                       By:    /s/ Jeanie Gonzalez
                                       Name:  Jeanie Gonzalez
                                       Title: Director

                                       MERRILL LYNCH BANK USA, as Bank

                                       By:    /s/ Louis Alder
                                       Name:  Louis Alder
                                       Title: Vice President

                                       MORGAN STANLEY SENIOR FUNDING, INC., as
                                       bank

                                       By:    /s/ Jaap Tonckens
                                       Name:  Jaap L. Tonckens
                                       Title: Vice President

                                       57
<PAGE>

                                       BANK OF OKLAHOMA, N.A., as Bank

                                       By:    /s/ Robert Mattax
                                       Name:  Robert D. Mattax
                                       Title: Senior Vice President

                                       BMO NESBITT BURNS FINANCING, INC., as
                                       Bank

                                       By:    /s/ Thomas E. McGraw
                                       Name:  Thomas E. McGraw
                                       Title: Vice President

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

                                       By:    /s/ K. Glasscock
                                       Name:  K. Glasscock
                                       Title: Vice President and Manager

                                       By:    /s/ J. Fort
                                       Name:  J. Fort
                                       Title: Vice President

                                       58

<PAGE>

                                   SCHEDULE I

                           APPLICABLE LENDING OFFICES

<TABLE>
<CAPTION>
Name of Bank                  Lending Office
------------                  --------------
<S>                           <C>
Citibank, N.A.                Citibank, N.A.
                              399 Park Avenue
                              New York, New York 10043

                              Notices:
                              Citibank, N.A.
                              2 Penns Way, Suite 200
                              New Castle, Delaware 19720
                              Telecopier: (302) 894-6120
                              Attn: The Williams Companies, Inc.
                              Account Officer

                              with copies to:
                              Citicorp North America, Inc.
                              1200 Smith Street, Suite 2000
                              Houston, Texas 77002
                              Telecopier: (713) 654-2849
                              Attn: The Williams Companies, Inc.
                              Account Officer

Bank of America, N.A.         Bank of America, N.A.
                              901 Main Street, 14th Floor
                              Dallas, Texas 75202
                              Telecopier: (214) 290-9415
                              Telephone: (214) 209-1228
                              Attn: Marija Salic

                              with copies to:
                              Bank of America, N.A.
                              Bank of America Center
                              700 Louisiana, 8th Floor
                              Houston, Texas 77002
                              Telecopier: (713) 247-7286
                              Telephone: (713) 247-7235
                              Attn: Claire Liu

The Bank of Nova Scotia       The Bank of Nova Scotia
                              600 Peachtree Street, N.E., Suite 2700
                              Atlanta, Georgia 30308
                              Telecopier: (404) 888-8998
                              Telex: 00542319
                              Attn: Robert L. Ahern

                              with copies to:
                              1100 Louisiana, Suite 3000
</TABLE>

                                       59

<PAGE>

<TABLE>
<CAPTION>
Name of Bank                  Lending Office
------------                  --------------
<S>                           <C>
                              Houston, Texas 77002
                              Telecopier: (713) 752-2425
                              Telephone: (713) 759-3440
                              Attn:

Bank One, NA                  Bank One, NA
(Chicago)                     1 Bank One Plaza
                              0634, 1 FNP, 10
                              Chicago, Illinois 60670
                              Telephone: (312) 732-5219
                              Telecopier: (312) 732-4840
                              Attn:

JPMorgan Chase Bank           JPMorgan Chase Bank
                              1111 Fannin - 10th Floor
                              Houston, TX 77002
                              Telecopier: (713) 427-6307
                              Telephone: (713) 750-2377
                              Attn: Jamie Kurtz

Credit Lyonnais               Credit Lyonnais New York Branch
New York Branch               1301 Avenue of the Americas
                              New York, New York 10019
                              Telecopier: (713) 759-9766
                              Telephone: (713) 753-8723
                              Attn: Bernadette Archie

Bank of Montreal              Bank of Montreal
                              115 S. LaSalle Street, 11th Floor
                              Chicago, Illinois 60603
                              Telecopier: (312) 750-6061
                              Telephone: (312) 750-4359
                              Attn: Anita Blake

                              BMO Nesbitt Burns Financing, Inc.
                              700 Louisiana, Suite 4400
                              Houston, TX 77002
                              Telecopier: (713) 223-4007
                              Telephone: (713) 546-9750
                              Attn: Cahal Carmody

Morgan Stanley Senior         Morgan Stanley Senior Funding, Inc.
Funding, Inc.                 1585 Broadway
                              New York, New York 10036
                              Telecopier: (212) 507-3663
                              Telephone: (212) 762-2787
                              Attn: Michael O'Hare
</TABLE>

                                       60

<PAGE>

<TABLE>
<CAPTION>
Name of Bank                  Lending Office
------------                  --------------
<S>                           <C>
Merrill Lynch Bank USA        Merrill Lynch Bank USA
                              15 West South Temple, Suite 300
                              Salt Lake City, UT 84101
                              Telecopier: (801) 531-7470
                              Telephone: (801) 526-8316
                              Attn: Frank K. Stepan

Barclays Bank PLC             Barclays Bank PLC
                              200 Park Avenue
                              New York, New York 10166
                              Telecopier: (212) 412-7600
                              Telephone: (212) 412-4029
                              Attn: Nicholas Bell

The Bank of Tokyo-            The Bank of Tokyo-Mitsubishi, Ltd.,
Mitsubishi, Ltd.,             Houston Agency
Houston Agency                1100 Louisiana Street, Suite 2800
                              Houston, Texas 77002-5216
                              Telecopier: (713) 655-3855
                              Telephone: (713) 655-3845
                              Attn: J.M. McIntyre

Toronto Dominion (Texas),     Toronto Dominion (Texas), Inc.
Inc.                          909 Fannin Street, 17th Floor
                              Houston, Texas 77010
                              Swift Address: TDOMU S4H
                              Telecopier: (713) 951-9921
                              Attn: Jill Hall

Lehman Commercial Paper,      Lehman Commercial Paper, Inc.
Inc.                          745 7th Avenue, 16th Floor
                              New York, New York 10019
                              Telecopier: (212) 520-0450
                              Telephone: (212) 526-6560
                              Attn: Marie Cowell

Westdeutsche Landesbank       Westdeutsche Landesbank Girozentrale,
Girozentrale, New York        New York Branch
Branch                        1211 Avenue of the Americas
                              New York, New York 10036
                              Telecopier: (212) 852-6307
                              Telephone: (212) 852-6096
                              Attn: Jeffrey S. Davidson

The Royal Bank of Scotland    The Royal Bank of Scotland
                              New York Branch
                              101 Park Avenue, 12th Floor
</TABLE>

                                       61

<PAGE>

<TABLE>
<CAPTION>
Name of Bank                  Lending Office
------------                  --------------
<S>                           <C>
                              New York, New York 10178
                              Telecopier: (212) 401-1494
                              Telephone: (212) 401-1406
                              Attn: Sheila Shaw

                              Notices:
                              The Royal Bank of Scotland
                              600 Travis Street, Suite 6070
                              Houston, TX 77002
                              Telecopier: (713) 221-2430
                              Telephone: (713) 221-2423
                              Attn: Patricia Dundee

Bank of Oklahoma, N.A.        Bank of Oklahoma, N.A.
                              BOK Tower 8 SE
                              One Williams Center
                              Tulsa, OK 74172
                              Telecopier: (918) 280-3318
                              Telephone: (918) 588-6675
                              Attn: Laurie Brumbaugh
</TABLE>

                                       62

<PAGE>

                                   SCHEDULE II

                             BORROWERS' INFORMATION

<TABLE>
<CAPTION>
Name of Borrowers                               Information for Notices
-----------------                               -----------------------
<S>                                             <C>
The Williams Companies, Inc.                    The Williams Companies, Inc.
                                                One Williams Center, Suite 5000
                                                Tulsa, Oklahoma 74172
                                                Attention: Patti J. Kastl
                                                Telecopier: (918) 573-2065
                                                Telephone: (918) 573-2172

Northwest Pipeline Corporation                  Northwest Pipeline Corporation
                                                2800 Post Oak Blvd.
                                                Houston, TX 77056
                                                Attention: Jeff P. Heinrichs
                                                Telecopier: (713) 215-2435
                                                Telephone: (713) 215-2356

Transcontinental Gas Pipe Line Corporation      Transcontinental Gas Pipe Line Corporation
                                                2800 Post Oak Blvd.
                                                Houston, TX 77056
                                                Attention: Jeff P. Heinrichs
                                                Telecopier: (713) 215-2435
                                                Telephone: (713) 215-2356
</TABLE>

<PAGE>

                                  SCHEDULE III

                                   COMMITMENTS

                               as of June 6, 2003

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                                                      Revolving Credit    Letter of Credit   LC Participation Percentage
Banks                                                  Commitment ($)      Commitment ($)                (%)
------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>                 <C>                <C>
Citibank, N.A                                            90,000,000         400,000,000                 11.250
------------------------------------------------------------------------------------------------------------------------
Bank of America, N.A                                     90,000,000         400,000,000                 11.250
------------------------------------------------------------------------------------------------------------------------
JPMorgan Chase Bank                                      90,000,000                   0                 11.250
------------------------------------------------------------------------------------------------------------------------
The Bank of Nova Scotia                                  60,000,000                   0                  7.500
------------------------------------------------------------------------------------------------------------------------
Barclays Bank plc                                        60,000,000                   0                  7.500
------------------------------------------------------------------------------------------------------------------------
The Royal Bank of Scotland plc                           60,000,000                   0                  7.500
------------------------------------------------------------------------------------------------------------------------
Credit Lyonnais New York Branch                          60,000,000                   0                  7.500
------------------------------------------------------------------------------------------------------------------------
Lehman Commercial Paper, Inc.                            60,000,000                   0                  7.500
------------------------------------------------------------------------------------------------------------------------
Toronto Dominion (Texas), Inc.                           60,000,000                   0                  7.500
------------------------------------------------------------------------------------------------------------------------
WESTLB AG, New York Branch                               35,000,000                   0                  4.375
------------------------------------------------------------------------------------------------------------------------
Bank One, N.A. (Main Office - Chicago)                   35,000,000                   0                  4.375
------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Bank USA                                   20,000,000                   0                  2.500
------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Senior Funding, Inc.                      20,000,000                   0                  2.500
------------------------------------------------------------------------------------------------------------------------
Bank of Oklahoma, N.A                                    20,000,000                   0                  2.500
------------------------------------------------------------------------------------------------------------------------
BMO Nesbitt Burns Financing, Inc.                        20,000,000                   0                  2.500
------------------------------------------------------------------------------------------------------------------------
The Bank of Tokyo-Mitsubishi, Ltd., Houston Agency       20,000,000                   0                  2.500
------------------------------------------------------------------------------------------------------------------------
TOTAL                                                  $800,000,000*                                   100.000
------------------------------------------------------------------------------------------------------------------------
</TABLE>

--------------------------
* The aggregate outstanding amount of all (i) Revolving Credit Advances and (ii)
Letters of Credit shall not exceed $800,000,000.

<PAGE>

                                                                       EXHIBIT A
                                                                              TO
                                                                CREDIT AGREEMENT

                        OPINION OF JAMES J. BENDER, ESQ.
                             GENERAL COUNSEL OF TWC

<PAGE>

                                                                       EXHIBIT B
                                                                              TO
                                                                CREDIT AGREEMENT

                         OPINION OF WHITE & CASE, L.L.P.
                                NEW YORK COUNSEL

<PAGE>

                                                                       EXHIBIT C
                                                                              TO
                                                                CREDIT AGREEMENT

                           FORM OF TRANSFER AGREEMENT

                             Dated __________, 20__

                  Reference is made to the Credit Agreement, dated as of June 6,
2003 (such Credit Agreement, as amended or otherwise modified from time to time,
being herein referred to as the "Credit Agreement"), among The Williams
Companies, Inc., Northwest Pipeline Corporation, and Transcontinental Gas Pipe
Line Corporation, as Borrowers, Citibank, N.A., as Agent for the Banks, Bank of
America N.A., as Syndication Agent, the Banks and Issuing Banks parties thereto.
Terms defined in the Credit Agreement are used herein with the same meaning.

                  ___________________ (the "Assignor") and ________________ (the
"Assignee") agree as follows:

                  1.       The Assignor hereby sells and assigns to the
         Assignee, without recourse, and the Assignee hereby purchases and
         assumes from the Assignor, an interest in and to all of the Assignor's
         rights and obligations under the Credit Agreement and the other Credit
         Documents executed in connection therewith as of the date hereof equal
         to the percentage interest specified on Schedule 1 hereto of all
         outstanding rights and obligations under the Credit Agreement. After
         giving effect to such sale and assignment, the Assignee's and
         Assignor's respective Letter of Credit Commitments and LC Participation
         Percentage will be as set forth in Schedule 1.

                  2.       The Assignor (i) represents and warrants that it is
         the legal and beneficial owner of the interest being assigned by it
         hereunder and that such interest is free and clear of any adverse
         claim; (ii) makes no representation or warranty and assumes no
         responsibility with respect to any statements, warranties or
         representations made in or in connection with the Credit Agreement, the
         other Credit Documents or other instrument or document furnished
         pursuant thereto or in connection therewith, the perfection, existence,
         sufficiency or value of any Collateral, guaranty or insurance or the
         execution, legality, validity, enforceability, genuineness, sufficiency
         or value of the Credit Agreement, any of the other Credit Documents or
         any other instrument or document furnished pursuant thereto or in
         connection therewith; and (iii) makes no representation or warranty and
         assumes no responsibility with respect to the financial condition of
         the Borrowers or any other Person or the performance or observance by
         the Borrowers or any other Person of any of their respective
         obligations under the Credit Agreement, the other Credit Documents or
         any other instrument or document furnished pursuant thereto or in
         connection therewith.

                  3.       The Assignee (i) confirms that it has received a copy
         of the Credit Agreement, together with copies of the financial
         statements referred to in Section 4.1(e) of the Credit Agreement and
         such other documents and information as it has deemed appropriate to
         make its own credit analysis and decision to enter into this Transfer

<PAGE>

         Agreement; (ii) agrees that it will, independently and without reliance
         upon the Agent, any Issuing Bank, the Assignor, any other Bank and
         based on such documents and information as it shall deem appropriate at
         the time, continue to make its own credit decisions in taking or not
         taking action under the Credit Agreement, any other Credit Document, or
         any other instrument or document; (iii) confirms that it is an Eligible
         Assignee; (iv) appoints and authorizes each of the Agent and the
         Collateral Agent, respectively, to take such action as agent on its
         behalf and to exercise such powers and discretion under the Credit
         Agreement as are delegated to the Agent, respectively, by the terms
         thereof, together with such powers and discretion as are reasonably
         incidental thereto; (v) agrees that it will perform in accordance with
         their terms all of the obligations which by the terms of the Credit
         Agreement are required to be performed by it as a Bank; and (vi)
         specifies as its Lending Office (and address for notices) the office
         set forth beneath its name on the signature pages hereof.

                  4.       Following the execution of this Transfer Agreement by
         the Assignor and the Assignee, this Transfer Agreement will be
         delivered to the Agent for acceptance and recording by the Agent. The
         effective date of this Transfer Agreement (the "Effective Date") shall
         be the date of acceptance thereof by the Agent, unless otherwise
         specified on Schedule 1 hereto.

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

                  6.       Upon such acceptance and recording by the Agent, from
         and after the Effective Date, the Agent shall make all payments under
         the Credit Agreement and the other instruments or documents furnished
         pursuant thereto or in connection therewith in respect of the interest
         assigned hereby (including all payments of principal, interest and fees
         with respect thereto) to the Assignee. The Assignor and Assignee shall
         make all appropriate adjustments in payments under the Credit Agreement
         and the other instruments or documents furnished pursuant thereto or in
         connection therewith for periods prior to the Effective Date directly
         between themselves.

                  7.       This Transfer Agreement shall be governed by, and
         construed in accordance with, the laws of the State of New York.

                  8.       This Transfer Agreement may be executed in any number
         of counterparts and by different parties hereto in separate
         counterparts, each of which when so executed shall be deemed to be an
         original and all of which taken together shall constitute one and the
         same agreement. Delivery of an executed counterpart of Schedule 1 to
         this Transfer Agreement by telecopier shall be as effective as delivery
         of a manually executed counterpart of this Transfer Agreement.

                                       2

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Transfer Agreement to be executed by their respective officers thereunto duly
authorized, as of the date first above written, such execution being made on
Schedule 1 hereto.

                                       3

<PAGE>

                                   Schedule 1
                                       to
                               Transfer Agreement

<TABLE>
<S>                                                               <C>
Section 1.

LC Participation Percentage interest assigned:                    ____________%

Assignee's LC Participation Percentage interest before giving
effect to this Transfer Agreement:                                ____________%

Assignee's LC Participation Percentage interest after giving
effect to this Transfer Agreement:                                ____________%

Assignor's remaining LC Participation Percentage interest after
giving effect to this Transfer Agreement:                         ______ _____%

Section 2.

Letter of Credit Commitment interest assigned:                    $___________

Assignee's Letter of Credit Commitment before giving effect
to this Transfer Agreement:                                       $___________

Assignee's Letter of Credit Commitment after giving effect to
this Transfer Agreement:                                          $___________

Assignor's remaining Letter of Credit Commitment after
giving effect to this Transfer Agreement:                         $___________

Section 3.

Effective Date: _____________________, 20____
</TABLE>

                                          [NAME OF ASSIGNOR], as Assignor

                                                By:_________________________
                                                Name:
                                                Title:
                                                Dated:

                                          [NAME OF ASSIGNEE], as Assignee

                                                By:_________________________
                                                Name:
                                                Title:
                                                Dated:

<PAGE>

                                    Lending Office (and address for notices):
                                    [Address]

Approved this ___ day of ______, _______

THE WILLIAMS COMPANIES, INC.

By:________________________
Name:
Title:

Approved this ___ day of ______, _______

[NAME OF [ISSUING BANK][BANK]], as [Issuing Bank][Bank]

By:________________________
Name:
Title:

Approved this ___ day of ______, _______

CITIBANK, N.A., as Agent

By:________________________
Name:
Title:

<PAGE>

                                                                     EXHIBIT D-1
                                                                              TO
                                                                CREDIT AGREEMENT

                       FORM OF NOTICE OF LETTER OF CREDIT

                                                                          [Date]

Citibank, N.A., as Agent
for the Banks parties to the Credit
Agreement referred to below
399 Park Avenue
New York, New York 10043

         Attention: Williams Account Officer

Ladies and Gentlemen:

The undersigned, The Williams Companies, Inc. Northwest Pipeline Corporation,
and Transcontinental Gas Pipeline Corporation (the "Borrowers"), (a) refer to
that certain Credit Agreement, dated as of June 6, 2003 (as amended or otherwise
modified from time to time, the "Credit Agreement"; the terms defined therein
and not defined herein being used herein as therein defined), among The Williams
Companies, Inc., Northwest Pipeline Corporation, Transcontinental Gas Pipe Line
Corporation, as Borrowers, Citibank, N.A., as Agent and Collateral Agent for the
Banks, Bank of America N.A., as Syndication Agent, the Banks and Issuing Banks
parties thereto and Citigroup Global Markets Inc., as Co-Lead Arrangers; (b)
hereby gives you notice, irrevocably, pursuant to Section 2.1 of the Credit
Agreement that the undersigned hereby requests _____________ (the "Issuing
Bank") to issue an irrevocable Letter of Credit as set forth below in such
language as the Issuing Bank may deem appropriate and (c) in that connection
sets forth below the information relating to such Letter of Credit (the "Letter
of Credit") as required by Section 2.1 of the Credit Agreement:

         (i)      The Business Day upon which the Letter of Credit will be
                  issued is ______________, 20____ (the "Issuance Date").

         (ii)     The account party for the Letter of Credit is the ___________.

         (iii)    Attached hereto as Exhibit A are the proposed terms of the
                  Letter of Credit (including the beneficiary thereof and the
                  nature of the transactions or obligations proposed to be
                  supported thereby).

                  The undersigned hereby certifies that each of the
representations and warranties pursuant to Section 3.2 of the Credit Agreement
are true on the date hereof, and will be true on the date of the Issuance Date.

<PAGE>

                                                Very truly yours,

                                                [THE WILLIAMS COMPANIES, INC. /
                                                NORTHWEST PIPELINE CORPORATION /
                                                TRANSCONTINENTAL GAS PIPELINE
                                                CORPORATION]

                                                By:_____________________________
                                                Name:___________________________
                                                Title:__________________________

cc:      Citicorp North America, Inc.
         1200 Smith Street, Suite 2000
         Houston, Texas 77002
         Attn: The Williams Companies, Inc.
               Account Officer

         [Issuing Bank]

<PAGE>

                                                                     EXHIBIT D-2
                                                                              TO
                                                                CREDIT AGREEMENT

                  FORM OF NOTICE OF REVOLVING CREDIT BORROWING

                                                                          [Date]

Citibank, N.A., as Agent
for the Banks parties to the Credit
Agreement referred to below
399 Park Avenue
New York, New York 10043

         ATTENTION: The Williams Companies, Inc. Account Officer

Ladies and Gentlemen:

         The undersigned, ____________________ (the "Borrower"), (a) refers to
the Credit Agreement, dated as of June 6, 2003 (as may be further amended,
modified, supplemented, renewed, extended or restated from time to time, the
"Credit Agreement"; the terms defined therein and not defined herein being used
herein as therein defined), by and among the undersigned, [The Williams
Companies, Inc.,][Northwest Pipeline Corporation,][Transcontinental Gas Pipe
Line Corporation,] certain Banks parties thereto, Citibank, N.A., as
Administrative Agent and Collateral Agent, Bank of America N.A., as Syndication
Agent, Citibank, N.A. and Bank of America N.A., as Issuing Banks, Citigroup
Global Markets Inc. and Banc of America Securities LLC, as Co-Lead Arrangers;
(b) hereby gives you notice, irrevocably, pursuant to Section 2.3(a) of the
Agreement that the undersigned hereby requests a Revolving Credit Borrowing
under the Agreement and (c) in that connection sets forth below the information
relating to such Revolving Credit Borrowing (the "Proposed Revolving Credit
Borrowing") as required by Section 2.3 (a) of the Credit Agreement:

         (i)      The Business Day of the Proposed Revolving Credit Borrowing is
                  __________, 20____.

         (ii)     The type of Revolving Credit Advance comprising the Proposed
                  Revolving Credit Borrowing is a [Base Rate Advance]
                  [Eurodollar Rate Advance].

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

         (iv)     [The Interest Period for each Revolving Credit Advance made as
                  part of the Proposed Revolving Credit Borrowing is __________
                  months.]

         The undersigned hereby certifies that each of the representations and
warranties pursuant to Section 3.2 are true on the date hereof, and will be true
on the date of the Proposed Revolving Credit Borrowing.

<PAGE>

                                          Very truly yours,

                                          [BORROWER]

                                          By:_______________________________
                                          Name:_____________________________
                                          Title:____________________________

cc:      Citicorp North America, Inc.
         1200 Smith Street, Suite 2000
         Houston, Texas 77002
         Attn: The Williams Companies, Inc.
               Account Officer

<PAGE>

                                                                       EXHIBIT E
                                                                              TO
                                                                CREDIT AGREEMENT

                           FORM OF SECURITY AGREEMENT

<PAGE>

                                                                       EXHIBIT F
                                                                              TO
                                                                CREDIT AGREEMENT

                                  FORM OF NOTE

U.S.$_______________                                  Dated: _____________, 200_

                  FOR VALUE RECEIVED, the undersigned, ____________, a Delaware
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
_________________________ (the "Bank") for the account of its Applicable Lending
Office (as defined in the Credit Agreement referred to below) on the Termination
Date (as defined in the Credit Agreement referred to below) the principal sum of
U.S.$___________ or, if less, the aggregate principal amount of the Revolving
Credit Advances made by the Bank to the Borrower pursuant to the Credit
Agreement, dated as of June 6, 2003 (as amended or otherwise modified from time
to time, the "Credit Agreement"; the terms defined therein and not defined
herein being used herein as therein defined), among The Williams Companies,
Inc., Northwest Pipeline Corporation, Transcontinental Gas Pipe Line
Corporation, as Borrowers, Citibank, N.A., as Agent and Collateral Agent for the
Banks, Bank of America N.A., as Syndication Agent, the Banks and Issuing Banks
parties thereto and Citigroup Global Markets Inc. and Banc of America Securities
LLC, as Co-Lead Arrangers) outstanding on the Termination Date.

                  The Borrower promises to pay interest on the unpaid principal
amount of each Revolving Credit Advance from the date of such Revolving Credit
Advance until such principal amount is paid in full, at such interest rates, and
payable at such times, as are specified in the Credit Agreement. Both principal
and interest in respect of each Revolving Credit Advance are payable in lawful
money of the United States of America to the Agent at its account maintained at
388 Greenwich Street, New York, New York 10013, in same day funds.

                  Each Revolving Credit Advance owing to the Bank by the
Borrower pursuant to the Credit Agreement, and all payments made on account of
principal thereof, shall be recorded by the Bank and, prior to any transfer
hereof, endorsed on the grid attached hereto which is part of this Promissory
Note.

                  This Promissory Note is one of the Notes referred to in, and
is entitled to the benefits of, the Credit Agreement. The Credit Agreement,
among other things, (i) provides for the making of Revolving Credit Advances by
the Bank to the Borrower from time to time in an aggregate amount not to exceed
at any time outstanding the U.S. dollar amount first above mentioned, the
indebtedness of the Borrower resulting from each such Revolving Credit Advance
being evidenced by this Promissory Note and (ii) contains provisions for
acceleration of the maturity hereof upon the happening of certain stated events
and also for prepayments on account of principal hereof prior to the maturity
hereof upon the terms and conditions therein specified. Capitalized terms used
herein which are not defined herein and are defined in the Credit Agreement are
used herein as therein defined.

                  The Borrower hereby waives presentment, demand, protest,
notice of intent to accelerate, notice of acceleration and any other notice of
any kind, except as provided in the

<PAGE>

Credit Agreement. No failure to exercise, and no delay in exercising, any rights
hereunder on the part of the holder hereof shall operate as a waiver of such
rights.

                  This Promissory Note shall be governed by, and construed in
accordance with, the laws of the State of New York.

                                                [BORROWER'S NAME]

                                                By________________
                                                Name:_____________
                                                Title:____________

<PAGE>

              REVOLVING CREDIT ADVANCES AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
------------------------------------------------------------------------------
                  AMOUNT OF         AMOUNT OF
               REVOLVING CREDIT   PRINCIPAL PAID   UNPAID PRINCIPAL   NOTATION
    DATE           ADVANCE          OR PREPAID          BALANCE        MADE BY
<S>            <C>                <C>              <C>                <C>
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</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]