Document:

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                                                                   EXHIBIT 10.47

                                                                  EXECUTION COPY

                            TAX COOPERATION AGREEMENT

         Agreement (the "Agreement") by and between The Williams Companies.
Inc., a Delaware corporation ("Williams"), and Williams Communications Group,
Inc. a Delaware corporation ("Communications") entered into as of the 30th day
of September, 1999, amended and restated as of the 23rd day of April 2001, and
as entered into on the 26th day of July, 2002, to be effective and amended,
restated and renamed as of the date on which the first amended Joint Chapter 11
Plan of Reorganization with respect to Communications and CG Austria, Inc., a
Delaware corporation, dated as of the 26th day of July, 2002, is consummated and
becomes effective and binding in all material respects (the "Effective Date").

                                    RECITALS

         Williams and Communications entered into a tax sharing agreement dated
September 30, 1999 (the "Tax Sharing Agreement") to allocate and settle among
themselves the consolidated Federal income tax liabilities of the TWC Group (as
hereinafter defined), the unitary, combined, consolidated or similar state
income tax liabilities of the parties and, if and as determined by Williams,
certain other tax liabilities.

         On April 23, 2001, Williams distributed most of the stock of
Communications owned by Williams to Williams' public shareholders (the
"Spin-off"). Also on April 23, 2001, Williams and Communications amended and
restated the Tax Sharing Agreement.

         Williams and Communications wish to amend, restate and rename the Tax
Sharing Agreement and execute this Agreement which will, as of the Effective
Date, supersede the Tax Sharing Agreement and be the sole governing agreement
between Williams and Communications to allocate and settle among themselves the
consolidated Federal income tax liabilities of the TWC Group, the unitary,
combined, consolidated or similar state income tax liabilities of the parties
and certain other tax liabilities arising prior to or after the Spin-off and to
provide procedures with respect to such tax matters.

                                   AGREEMENTS

         Accordingly, the parties agree as follows:

                                    ARTICLE I

                               CERTAIN DEFINITIONS

         The defined terms used in this Agreement shall, except as otherwise
expressly provided or unless the context otherwise requires, have the meanings
specified in this Article I. The singular shall include the plural and masculine
gender shall include the feminine, the neuter and vice versa, as the context
requires.

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         "Code" means the Internal Revenue Code of 1986, as amended.

          "Final Determination" means an IRS Form 870 or 870AD that reflects an
adjustment to any item (or a component of an item) shown on a Tax return
(whether or not such adjustment results in a deficiency in Taxes) and any
similar state, local or foreign form, a closing agreement or an accepted offer
in compromise with the IRS (or appropriate state, local or foreign taxing
authority) or any other adjustment to any item to which the taxpayer concedes
(including, but not limited to, the filing of an amended return upon which the
taxpayer adjusts an item in the favor of the IRS (or the appropriate state,
local or foreign taxing authority)) or as to which the period of limitations has
expired (whether or not such adjustment results in a deficiency in Taxes), a
claim for refund that has been allowed, a deficiency notice with respect to
which the period for filing a petition with the Tax Court has expired, or a
decision of any court of competent jurisdiction that is not subject to appeal or
the time for appeal of which has expired.

         "IPO Date" means October 1, 1999 (the date of the initial public
offering of stock of Communications).

         "IRS" means the Internal Revenue Service.

         "Post-IPO Date / Pre-Spin-off WCG Attribute" means any operating loss
or loss or credit carryover or similar attribute of WCG attributable to dates
beginning on the IPO Date and ending on the Spin-off Date (including the portion
of the taxable year beginning on January 1, 2001 and ending on the Spin-off
Date). If an amended return is filed or there is any change by Final
Determination to an operating loss or loss or credit carryover or similar
attribute of WCG (or items giving rise to such operating loss or loss or credit
carryover or similar attribute of WCG), Williams shall allocate such changes in
the operating loss or loss or credit carryover or similar attribute of WCG
(and/or reallocate any previously allocated operating loss or loss or credit
carryover or similar attribute of WCG that is affected by a change in items
giving rise to such operating loss or loss or credit carryover or similar
attribute of WCG) between Williams and WCG pursuant to the following method: (i)
if the item (that caused the adjustment) has been previously allocated between
Williams and WCG on a Federal income tax return or on Exhibit A, the change to
such item shall be allocated in the same manner such item was allocated on the
most recently filed Federal income tax return, or if such item has not been
allocated on such return, in the same manner such item was allocated on Exhibit
A; (ii) if (i) does not apply, to the extent that such item clearly relates to
the income, assets or operations of Williams (or non-WCG members of the TWC
Group), the change to such item shall be allocated to Williams and to the extent
that the item clearly relates to the income, assets or operations of WCG, the
change to such item shall be allocated to WCG; (iii) if neither (i) nor (ii)
apply, then the change to such item shall be allocated pro-rata according to the
most relevant measure for such item, unless Williams and WCG otherwise agree
that another allocation method would be more equitable. If such item is an
adjustment with respect to the 1999 taxable year, such item shall first be
allocated to periods before and after the IPO Date as provided below in the
definition of Pre-IPO Date WCG Attribute.

         "Pre-IPO Date WCG Attribute" means any operating loss or loss or credit
carryover or similar attribute, of WCG attributable to dates preceding the IPO
Date (including the portion of the 1999 taxable year beginning on January 1,
1999 and ending on the day preceding the IPO Date). Any operating loss or loss
or credit carryover or similar attribute of WCG attributable to a

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taxable year ending in or before 1998 shall be a Pre-IPO Date WCG Attribute
notwithstanding any changes to such items resulting from an amended return or a
Final Determination. The PreIPO Date WCG Attributes (and items giving rise to
such attributes) attributable to the taxable year 1999 initially shall be based
on the total amount of operating loss or loss or credit carryovers or similar
attribute of WCG set forth in the latest (regular or amended) TWC Group
consolidated 1999 Federal income tax return that is filed prior to the Spin-off
Date or, if not so set forth, then as set forth on Exhibit B. If an amended
return is filed or there is any change by Final Determination to an operating
loss or loss or credit carryover or similar attribute of WCG (or items giving
rise to such operating loss or loss or credit carryover or similar attribute of
WCG) for the taxable year 1999, Williams shall first allocate such changes in
the operating loss or loss or credit carryover or similar attribute of WCG
(and/or reallocate any previously allocated operating loss or loss or credit
carryover or similar attribute of WCG that is affected by a change in items
giving rise to such operating loss or loss or credit carryover or similar
attribute of WCG) to periods before and after the IPO Date, and (if such
attribute is allocated to a date after the IPO Date) between Williams and WCG
pursuant to the following method: (i) if the item (that caused the adjustment)
has been previously allocated between Williams and WCG on the TWC Group
consolidated 1999 Federal income tax return or on Exhibit B, the change to such
item shall be allocated in the same manner such item was allocated on the latest
(regular or amended) TWC Group consolidated 1999 Federal income tax return, or
if such item has not been allocated on such return, in the same manner such item
was allocated on Exhibit B; (ii) if (i) does not apply, (a) for allocations of
items to periods before and after the IPO Date, to the extent that such item
clearly relates to periods prior to the IPO Date, the change to such item shall
be allocated to the period prior to the IPO Date, and to the extent that such
item clearly relates to periods after the IPO Date, the change to such item
shall be allocated to the period after the IPO Date and (b) for allocations of
items between Williams and WCG, to the extent that the item clearly relates the
income, assets or operations of Williams, the change to such item shall be
allocated to Williams, and to the extent that the item clearly relates the
income, assets or operations of WCG, the change to such item shall be allocated
to WCG; (iii) if neither (i) nor (ii) apply, then such item shall be allocated
pro-rata according to the most relevant measure for such item, unless Williams
and WCG otherwise agree that another allocation method would be more equitable.

         "Spin-off Date" means April 23, 2001.

         "Taxes" means all taxes, assessments, charges, duties, fees, levies or
other governmental charges, including, without limitation, all Federal, state,
local, foreign and other income, franchise, profits, capital gains, capital
stock, transfer, sales, use, occupation, property, excise, severance, windfall
profits, stamp, license, payroll, withholding and other taxes, assessments,
charges, duties, fees, levies or other governmental charges of any kind
whatsoever (whether payable directly or by withholding and whether or not
requiring the filing of a return), all estimated taxes, deficiency assessments,
additions to tax, penalties and interest and shall include any liability for
such amounts as a result either of being a member of a combined, consolidated,
unitary or affiliated group or of a contractual obligation to indemnify any
person or other entity.

         "TWC Group" means Williams and other corporations (whether existing or
hereafter formed or acquired) that at the time would be entitled or required to
join with Williams in filing a consolidated Federal income tax return.

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         "WCG" means the group of corporations consisting of Communications and
all members of the TWC Group owned, directly or indirectly and in whole or in
part, by Communications (but shall not include Williams or any other corporation
in the TWC Group in which a member of the WCG does not directly own a 5%
interest).

         "WCG Loss Carryover" means any TWC Group consolidated loss (or other
similar attribute) attributable to Communications or such other member of WCG,
if any (as determined by Williams and Communications in accordance with any
permitted method under the consolidated return provisions of the Code and
Treasury Regulations thereunder) that became an attribute of Communications or
such other member of WCG after the Spin-off.

         "WCG Credit Carryover" means any TWC Group consolidated credit
carryover (or other similar attribute) attributable to Communications or such
other member of WCG, if any (as determined by Williams and Communications in
accordance with any permitted method under the consolidated return provisions of
the Code and Treasury Regulations thereunder) that became an attribute of
Communications or such other member of WCG after the Spin-off.

                                   ARTICLE II

                                    PAYMENTS

         Section 2.01 Tax Liability.

         Williams and Communications have settled all payments with respect to
Taxes for all periods and no payments shall be required to be made by Williams
to Communications or by Communications to Williams with respect to Taxes for any
period; provided, however, that Williams hereby indemnifies Communications and
each corporation that is a member of WCG from and against any Taxes for which
Communications or any such WCG member has liability under Treasury Regulation
Section 1.1502-6 or any analogous provision of state, local or foreign law
relating to the membership of Communications or any such WCG member in the TWC
Group.

                                   ARTICLE III

                            TAX MATTERS; COOPERATION

         Section 3.01 Williams as Agent.

(a) General rule. Communications hereby irrevocably appoints Williams as its
agent, and Communications hereby agrees that Williams shall have sole and
absolute authority, for the purposes of preparing and filing consolidated
Federal income tax returns for the TWC Group (including, without limitation,
preparing and filing estimated tax returns, amended tax returns and claims for
refund, determining tax return positions, selecting methods of accounting and
making elections). Communications agrees that Williams (acting reasonably and
with an obligation to consider suggestions by Communications) shall: (i) (A)
represent any member of WCG that is a member of the TWC Group with respect to
any consolidated Federal income tax

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audit or consolidated Federal income tax controversy (including, without
limitation, any proceeding with the IRS and any judicial proceedings, whether
any such proceedings relate to a claim for additional taxes or a claim for
refund of taxes), (B) settle or compromise any claim for additional, or any
claim for refund of, Federal income taxes of any member of WCG that is a member
of the TWC Group, and (C) direct all communications between the IRS and any
employee of a member of WCG that is a member of the TWC Group with respect to
any issue that could affect an item reflected on the consolidated Federal income
tax return of the TWC Group; (ii) engage outside counsel, accountants and other
experts with respect to Federal income tax matters relating to any member of WCG
that is a member of the TWC Group; and (iii) take any other action in connection
with Federal income tax matters relating to any member of WCG that is a member
of the TWC Group (or relating to any other member of the TWC Group) as Williams
determines to be necessary or appropriate. Communications agrees that no
employee of WCG or any of its member companies will provide any information
(whether written or oral) to the IRS that could affect an item reflected on the
consolidated Federal income tax return of the TWC Group, except at the direction
of Williams.

         (b) Exceptions for certain matters affecting Communications.
Notwithstanding (a), the following exceptions shall apply to the general rule
set forth in (a) if there is an audit or any proposed adjustment that could
reduce either: (i) a WCG Loss Carryover or (ii) a WCG Credit Carryover (a
"Communications Tax Matter"):

         (i) Williams shall promptly give Communications notice of the
commencement of a Communications Tax Matter, and Williams shall inform
Communications of the status of, and any material discussion or provision of
material information by Williams with respect to, a Communications Tax Matter.
In addition, Communications shall have the right to provide documentation to an
IRS agent and present an argument to an IRS agent supporting a position that is
consistent with the positions taken by Williams with respect to such audit;
provided, however, that Williams shall have full rights to control the audit and
all presentations to an IRS agent and to be present during any presentation by
Communications to the IRS.

         (ii) Williams shall inform Communications of any formal conference with
Appeals regarding a Communications Tax Matter. To the extent feasible, Williams
shall provide copies to Communications of any written submissions to Appeals
that contain discussions of a Communications Tax Matter a reasonable period
prior to the submission of such written materials, and, to the extent feasible,
Williams agrees to consult with Communications in good faith regarding the legal
arguments raised in such submissions. Communications does not have the right to
be present or represented at appeals conferences, but Williams, at
Communications' request, will discuss with Communications what transpired at an
appeals conference regarding a Communications Tax Matter.

         (iii) Williams shall not enter into a settlement regarding a
Communications Tax Matter without the consent of Communications, such consent
not to be unreasonably withheld or delayed.

         (iv) If (a) Communications furnishes to Williams an opinion of
nationally recognized tax counsel that it is more likely than not that the IRS's
position regarding a Communications Tax

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Matter will not be sustained by a court, and (b) Communications shall have
acknowledged in writing its obligation to indemnify Williams in the event the
litigation is unsuccessful, Communications can compel Williams to litigate a
position, using counsel acceptable to both Communications and Williams, at
Communications' expense. With respect to any Communications Tax Matter that
cannot be litigated or separated from any other matter, Williams shall have the
right to use its own counsel and such counsel shall control the litigation
(including making legal and strategic decisions and making arguments in court),
but Williams shall consider in good faith suggestions and concerns raised by
Communications' counsel regarding the Communications Tax Matter, and, if
reasonably feasible, Williams shall permit Communications' counsel to control
the legal arguments with respect to the Communications Tax Matter.

         Section 3.02 Cooperation. Communications shall cooperate with Williams,
and Williams shall cooperate with Communications, regarding the application of
all aspects of this Agreement (including, without limitation, the proper and
timely preparation and filing of any tax return to which this Agreement applies,
the calculation of basis and the conduct of any tax audit or tax controversy to
which this Agreement applies) (i) by maintaining such books, records, accounting
data and other information in its possession necessary for the preparation and
filing of all consolidated Federal income tax returns of the TWC Group for 10
years and by not disposing of any such books, records, accounting data and other
information after such 10-year period without first providing Williams or
Communications, as the case may be, with a 90-day opportunity to obtain such
books, records, accounting data and other information; (ii) by providing such
other information as requested by Williams or Communications, as the case may
be, (iii) by executing such documents and (iv) by taking any such other action
(including, without limitation, making any officers, directors, employees and
agents available to Williams or Communications, as the case may be), in each
such case as Williams or Communications, as the case may be, may request from
time to time. Communications or Williams, as the case may be, shall secure the
covenant of any acquirer of any member of WCG or Williams, as the case may be,
to comply with this Section 3.02 for the benefit of Williams and Williams's
successors and assigns or for the benefit of Communications or Communications's
successor and assigns, as the case may be. For purposes of this section 3.02, in
addition to Communications's obligations pursuant to this section,
Communications shall cause WCG to comply with each obligation pursuant to this
section, and in addition to Williams's obligations pursuant to this section,
Williams shall cause all non-WCG members of the TWC Group to comply with each
obligation pursuant to this section.

                                   ARTICLE IV

                  STATE, LOCAL, FOREIGN AND OTHER FEDERAL TAXES

         4.01 Williams and Communications have settled all payments with respect
to state, local, foreign and other federal Taxes for all periods and no payments
shall be required to be made by Williams to Communications or by Communications
to Williams with respect to such Taxes for any period.

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                                    ARTICLE V

                                  MISCELLANEOUS

         Section 5.01 Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns, but neither this Agreement nor any of the
rights, interests or obligations hereunder shall be assigned by either party
without the prior written consent of the other party, such consent not to be
unreasonably withheld or delayed.

         Section 5.02 Expenses. Each party hereto will bear their own legal,
accounting and other expenses incurred by such party in connection with the
negotiation, preparation and execution of this Agreement and any other agreement
prepared in connection with the Spin-off and with respect to actions taken
pursuant to the operation of this Agreement and any other agreement executed in
connection with the Spin-off (unless otherwise provided in such other
agreement).

         Section 5.03 Effect of Agreement. This Agreement shall determine the
rights and liabilities of the parties as to the matters provided for in this
Agreement, whether or not such determination is effective for financial
reporting or other purposes.

         Section 5.04 Entire Agreement. This Agreement sets forth the entire
agreement and understanding of the parties in respect of the subject matter
contained in this Agreement and supersedes all prior or contemporaneous
agreements, promises, covenants, arrangements, communications, representations
or warranties, whether oral or written, by any party or by any officer, employee
or representative of any party.

         Section 5.05 Amendments and Waivers. This Agreement shall not be
modified, supplemented or terminated except by a writing duly signed by each of
the parties hereto, and no waiver of any provision of this Agreement shall be
effective unless in a writing duly signed by the party sought to be bound.

         Section 5.06 Code References. Any references to Sections of the Code
shall be deemed to refer to any corresponding provisions of succeeding law as in
effect from time to time.

         Section 5.07 Notices. Any notice, communication or approval required or
permitted to be given under this Agreement shall be deemed to have been duly
given if delivered by hand or deposited in the United States mail, postage
prepaid and sent by certified or registered mail, if addressed to Williams, at:

         THE WILLIAMS COMPANIES, INC.
         ONE WILLIAMS CENTER
         TULSA, OKLAHOMA 74172
         ATTENTION:   JACK MCCARTHY

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         if addressed to Communications, at:

         WILLIAMS COMMUNICATIONS GROUP, INC.
         ONE WILLIAMS CENTER
         TULSA, OKLAHOMA 74172
         ATTENTION:  SCOTT SCHUBERT

         Section 5.08 Third Parties. Nothing expressed or implied in this
Agreement is intended or shall be construed to confer upon or give to any person
other than the parties hereto any rights or remedies under or by reason of this
Agreement.

         Section 5.09 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without regard to
principles of conflicts of law.

         Section 5.10 Severability. If any provision of this Agreement or the
application of this Agreement in any circumstance is held invalid or
unenforceable, the remainder of this Agreement and the application of this
Agreement in any other circumstance shall not be affected thereby, the
provisions of this Agreement being severable in any such instance.

         Section 5.11 Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         Section 5.12 Dispute Resolution. The parties agree that any dispute
arising under this Agreement shall be resolved in accordance with the Dispute
Resolution procedures set forth in the Amended and Restated Separation Agreement
made by and between Williams and Communications dated April 23, 2001.

         The parties hereto have caused this Agreement to be duly executed as of
the date first written above.

THE WILLIAMS COMPANIES, INC.

BY:
   -------------------------------
ITS:
   -------------------------------

WILLIAMS COMMUNICATIONS GROUP, INC.

BY:
   -------------------------------
ITS:
   -------------------------------

                                      -8-<PAGE>
                                                                   EXHIBIT 10.48

EXECUTION COPY

                       GUARANTY INDEMNIFICATION AGREEMENT

         THIS GUARANTY INDEMNIFICATION AGREEMENT (this "Agreement") is made and
entered into this 26th day of July, 2002, but shall not become effective until
the Effective Date (as such term is defined in the Plan), by and between The
Williams Companies, Inc. a Delaware corporation ("Williams"), and Williams
Communications Group, Inc., a Delaware corporation ("Communications"). The
parties to this Agreement are collectively referred to as the "Parties", and
singularly as a "Party".

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.01. DEFINITIONS. As used in this Agreement, in addition to
the terms defined in the Preamble hereof, the following terms shall have the
following meanings, applicable to both the singular and plural forms of the
terms described:

         "BUSINESS DAY" means any calendar day which is not a Saturday, Sunday
or public holiday under the laws of the State of New York.

         "COMMUNICATIONS GROUP" means Communications and its direct and indirect
subsidiaries.

         "INDEMNIFIABLE LOSSES" shall have the meaning ascribed to it in Section
2.01.

         "INDEMNIFYING PARTY" shall have the meaning ascribed to it in Section
2.02(a).

         "INDEMNITEE" shall have the meaning ascribed to it in Section 2.02(a).

         "INDEMNITY PAYMENT" shall have the meaning ascribed to it in Section
3.01 (a).

         "INSURANCE PROCEEDS" means those monies: (a) received by an insured
from an insurance carrier, or (b) paid by an insurance carrier on behalf of the
insured in the case of (a) or (b), net of any applicable premium adjustments
(including reserves and retrospectively rated premium adjustments) and net of
any costs or expenses (including allocated costs of in-house counsel and other
personnel) incurred in collection thereof.

         "LIABILITIES" means all liabilities and obligations of a party, actual
or contingent, liquidated or unliquidated, accrued or unaccrued, known or
unknown, whenever and however arising, including all costs and expenses
(including reasonable fees and disbursements of counsel) relating thereto, and
including, without limitation, liabilities and obligations arising in connection
with any actual or threatened claim, action, suit or proceeding by or before any
court or regulatory or administrative agency or commission or any arbitration
panel.

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         "PLAN" means the First Amended Joint Chapter 11 Plan of Reorganization
of Communications and CG Austria. Inc. filed as of July 26, 2002 in the chapter
11 case No. 02-11957 (BRL) pending in the United States Bankruptcy Court for the
Southern District of New York.

         "TAX ASSESSMENT" shall have the meaning ascribed to it in Section
8.01(a).

         "TAXES" means all taxes, assessments, charges, duties, fees, levies or
other governmental charges, including, without limitation, all Federal, state,
local, foreign and other income, franchise, profits, capital gains, capital
stock, transfer, sales, use, occupation, property, excise, severance, windfall
profits, stamp, license, payroll, withholding and other taxes, assessments,
charges, duties, fees, levies or other governmental charges of any kind
whatsoever (whether payable directly or by withholding and whether or not
requiring the filing of a return), all estimated taxes, deficiency assessments,
additions to tax, penalties and interest and shall include any liability for
such amounts as a result either of being a member of a combined, consolidated,
unitary or affiliated group or of a contractual obligation to indemnify any
person or other entity.

         "THIRD-PARTY CLAIM" shall have the meaning ascribed to it in Section
3.01(a).

         "WILLIAMS GROUP" means Williams and each of its direct and indirect
subsidiaries other than members of the Communications Group.

         "WILLIAMS GUARANTEE" means the guarantees listed on Exhibit A attached
hereto and made a part hereof.

         SECTION 1.02. INTERNAL REFERENCES. Unless the context indicates
otherwise, references to Articles, Sections and Paragraphs shall refer to the
corresponding Articles, Sections and Paragraphs in this Agreement, and
references to the parties shall mean the parties to this Agreement.

                                   ARTICLE II

                                    GUARANTEE

         SECTION 2.01. GUARANTEE. The Communications Group shall indemnify,
defend and hold harmless each member of the Williams Group, and their respective
directors, officers, employees, agents and representatives, from and against any
and all losses, claims, damages, liabilities, demands, suits and actions,
including all reasonable attorneys' fees and disbursements and other costs and
expenses incurred in connection therewith (collectively, "Indemnifiable Losses")
relating to, resulting from, or arising out of any Williams Guarantee. Each
member of the Williams Group shall not terminate unilaterally or withdraw any
Williams Guarantee and shall abide by the terms of any such Williams Guarantee.
The Communications Group shall reimburse each member of the Williams Group for
any direct fees (such as letter of credit maintenance fees) incurred by such
member in connection with maintaining any Williams Guarantee.

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         SECTION 2.02. INDEMNIFICATION OBLIGATIONS NET OF INSURANCE PROCEEDS AND
OTHER AMOUNTS. (a) The amount which any party (an "Indemnifying Party") is
required to pay to any person entitled to indemnification hereunder (an
"Indemnitee") will be reduced by any Insurance Proceeds theretofore actually
recovered by or on behalf of the Indemnitee in reduction of the related
Liability. If an Indemnitee receives a payment (an "Indemnity Payment") required
by this Agreement from an Indemnifying Party in respect of any Liability and
subsequently receives Insurance Proceeds, then the Indemnitee will pay to the
Indemnifying Party an amount equal to the excess of the Indemnity Payment
received over the amount of the Indemnity Payment that would have been due if
the Insurance Proceeds recovery had been received, realized or recovered before
the Indemnity Payment was made.

         (b) An insurer who would otherwise be obligated to pay any claim shall
not be relieved of the responsibility with respect thereto or, solely by virtue
of the indemnification provisions hereof, or have any subrogation rights with
respect thereto, it being expressly understood and agreed that no insurer or any
other third party shall be entitled to a "windfall" (i.e., a benefit they would
not be entitled to receive in the absence of the indemnification provisions) by
virtue of the indemnification provisions hereof. Notwithstanding the foregoing,
each member of the Williams Group and Communications Group shall be required to
use commercially reasonable efforts to collect or recover any available
Insurance Proceeds.

                                   ARTICLE III

                                     CLAIMS

         SECTION 3.01. THIRD-PARTY CLAIMS. (a) If Indemnitee receives notice of
the assertion of any claim or of the commencement of any action or proceeding by
any person that is not a party to this Agreement or a subsidiary of any such
party against Indemnitee (a "Third-Party Claim"), Indemnitee shall promptly
provide written notice thereof (including a description. of the Third-Party
Claim and an estimate of any Indemnifiable Losses, which estimate shall not be
conclusive as to the final amount of such Indemnifiable Losses) to the
Indemnifying Party. Any delay by the Indemnitee in providing such written notice
shall not relieve the indemnifying Party of any liability for indemnification
hereunder except to the extent that the rights of the Indemnifying Party are
materially prejudiced by such delay.

         (b) The Indemnifying Party shall have the right to participate in or,
by giving written notice to the Indemnitee, to assume the defense of any
Third-Party Claim at such Indemnifying Party's expense and by such Indemnifying
Party's own counsel (which shall be reasonably satisfactory to the Indemnitee),
and the Indemnitee will cooperate in good faith in such defense. The
Indemnifying Party shall not be liable for any legal expenses incurred by the
Indemnitee after the Indemnitee has received notice of (i) the Indemnifying
Party's intent to assume the defense of a Third-Party Claim and (ii) the date
upon which such defense shall be assumed by the Indemnifying Party; provided,
however, that if, under applicable standards of professional conduct a conflict
on any significant issue between the Indemnifying Party and any Indemnified
Party exists in respect of such Third-Party Claim, then the Indemnifying Party
shall reimburse

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the Indemnified Party for the reasonable fees and expenses of one additional
counsel (who shall be reasonably acceptable to the Indemnifying Party);
provided, further, that if the Indemnifying Party fails to take steps reasonably
necessary to diligently pursue the defense of such Third-Party Claim within
twenty (20) Business Days of receipt of notice from the Indemnitee that such
steps are not being taken, the Indemnitee may assume its own defense and the
indemnifying Party shall be liable for the reasonable costs thereof.

         (c) The Indemnifying Party may settle any Third-Party Claim which it
has elected to defend so long as the written consent of the Indemnitee to such
settlement is first obtained (which consent shall not be unreasonably withheld).
The Indemnitee shall not settle any Third-Party Claim without the written
consent of the Indemnifying Party (which consent shall not be unreasonably
withheld).

         (d) In the event that a Third-Party Claim involves a proceeding as to
which both Williams and Communications may be Indemnifying Parties, the parties
hereto agree to cooperate in good faith in a joint defense of such Third-Party
Claim.

         (e) In the event of payment by or on behalf of any Indemnifying Party
to any Indemnitee in connection with any Third-Party Claim, such Indemnifying
Party shall be subrogated to and shall stand in the place of such Indemnitee as
to any events or circumstances in respect of which such Indemnitee may have any
right, defense or claim relating to such Third-Party Claim against any claimant
or plaintiff asserting such Third-Party Claim or against any other person. Such
Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner,
and at the cost and expense (including allocated costs of in-house counsel and
other personnel) of such Indemnifying Party, in prosecuting any subrogated
right, defense or claim.

         SECTION 3.02. NON THIRD-PARTY CLAIMS. In the event that an Indemnified
Party should have a claim against the Indemnifying Party hereunder that does not
involve a claim or demand being asserted against or sought to be collected from
it by a third party, the Indemnified Party shall send a notice with respect to
such claim to the Indemnifying Party. The Indemnifying Party shall have sixty
(60) days from the date such notice is delivered during which to notify the
Indemnified Party in writing of any good faith objections it has to the
Indemnified Party's notice or claims for indemnification, setting forth in
reasonable detail each of the Indemnifying Party's objections thereto. If the
Indemnifying Party does not deliver such written notice of objection within such
sixty-day period, the Indemnifying Party shall be deemed to not have any
objections to such claim. If the Indemnifying Party does deliver such written
notice of objection within such sixty (60) day period, the Indemnifying Party
and the Indemnified Party shall attempt in good faith to resolve any such
dispute within sixty (60) days of the delivery by the Indemnifying Party of such
written notice of objection. If the Indemnifying Party and the Indemnified Party
are unable to resolve any such dispute within such sixty (60) day period, such
dispute shall be resolved in accordance with the Dispute Resolution Procedures
set forth in the Amended and Restated Separation Agreement between Williams and
Communications dated April 23, 2001.

                                       -4-
<PAGE>

                                   ARTICLE IV

                                   COOPERATION

         SECTION 4.01. COOPERATION. So long as any books, records and files
retained after the Effective Date by any member of the Williams Group, on the
one hand, or any member of the Communications Group on the other hand, relating
to the Williams Guarantees (including any books, records and files retained by
any member of the Communications Group relating to the Williams Guarantees)
remain in existence and are available, such other party shall have the right
upon prior written notice to inspect and copy the same at any time during
business hours for any proper purpose; provided that such right will not extend
to any books, records or files the disclosure of which in accordance herewith
would result in a waiver of the attorney-client, work-product or other
privileges which permit non-disclosure of otherwise relevant material in
litigation or other proceedings, or which are subject on the date hereof and at
the time inspection is requested to a non-disclosure agreement with a third
party and a waiver cannot reasonably be obtained. Williams and Communications
agree that neither they nor any member of the Williams Group or the
Communications Group, as the case may be, shall destroy such books, records or
files without reasonable notice to the other party or if such party receives
within ten (10) Business Days of such notice any reasonable objection from the
other party to such destruction. Except in the case of dispute between the
parties hereto, each member of the Williams Group and each member of the
Communications Group shall cooperate with one another in a timely manner in any
administrative or judicial proceeding involving any matter affecting the actual
or potential liability of either party hereunder. Such cooperation shall
include, without limitation, making available to the other party during normal
business hours all books, records and information, and officers and employees
(without substantial disruption of operations or employment) necessary or useful
in connection with any inquiry, audit, investigation or dispute, any litigation
or any other matter requiring any such books, records, information, officers or
employees for any reasonable business purpose. The party requesting or otherwise
entitled to any books, records, information, officers or employees pursuant to
this Article IV shall bear all reasonable out-of-pocket costs and expenses
(except for salaries, employee benefits and general overhead) incurred in
connection with providing such books, records, information, officers or
employees.

                                    ARTICLE V

                                  EFFECTIVENESS

         SECTION 5.01. EFFECTIVENESS. This Agreement is effective as of the
Effective Date.

                                   ARTICLE VI

                             SUCCESSORS AND ASSIGNS

         SECTION 6.01. SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon the parties hereto and their respective successors and permitted assigns
and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. This Agreement may not be assigned by either
party hereto to any other person without the prior written consent of the other
party hereto.

                                       -5-
<PAGE>

                                   ARTICLE VII

                          NO THIRD-PARTY BENEFICIARIES

         SECTION 7.01. NO THIRD-PARTY BENEFICIARIES. Nothing expressed or
implied in this Agreement shall be construed to give any person or entity other
than the parties hereto any legal or equitable rights hereunder.

                                  ARTICLE VIII

                              TAXATION OF PAYMENTS

         SECTION 8.01. TAXATION OF PAYMENTS. (a) All sums payable by the
Indemnifying Party to the Indemnified Party under this Agreement shall be paid
free and clear of all deductions, withholdings, set-offs or counterclaims
whatsoever save only as may be required by law. If any deductions or
withholdings are required by law, the Indemnifying Party shall be obliged to pay
to the Indemnified Party such sum as will, after such deduction or withholding
has been made, leave the Indemnified Party with the same amount as it would have
been entitled to receive in the absence of any such requirement to make a
deduction or withholding. If any authority imposes any Taxes on any sum paid to
the Indemnified Party under this Agreement (a "Tax Assessment"), then the amount
so payable shall be grossed up by such amount as will ensure that after payment
of the Tax Assessment there shall be left a sum equal to the amount that would
otherwise be payable under this Agreement.

         (b) The Indemnified Party shall take any action and institute any
proceedings, and give any information and assistance, as the Indemnifying Party
may reasonably request, to dispute, resist, appeal, compromise, defend, remedy
or mitigate any Tax Assessment, in each case on the basis that the Indemnifying
Party shall indemnify the Indemnified Party for all reasonable costs incurred as
a result of a request by the Indemnifying Party.

         (c) The Indemnified Party shall not admit liability in respect of, or
compromise or settle, a Tax Assessment without the prior written consent of the
Indemnifying party (such consent not to be unreasonably withheld or delayed).

                                   ARTICLE IX

                               ADDITIONAL MATTERS

         SECTION 9.01. REMEDIES CUMULATIVE. The remedies provided in this
Agreement shall be cumulative and shall not preclude assertion by any Indemnitee
of any other rights or the seeking of any and all other remedies against any
Indemnifying Party.

         SECTION 9.02. LIMITATION ON LIABILITY. No indemnifying Party shall be
liable to an Indemnified Party under this Agreement in respect of consequential,
exemplary, special or punitive damages, or lost profits, except to the extent
such consequential, exemplary, special or punitive damages, or lost profits are
actually paid to a third party.

                                       -6-
<PAGE>

                                    ARTICLE X

                                ENTIRE AGREEMENT

         SECTION 10.01. ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement among the parties with respect to the subject matter hereof and
supersedes any prior or contemporaneous agreement or understanding between the
Parties.

                                   ARTICLE XI

                                    AMENDMENT

         SECTION 11.01. AMENDMENT. This Agreement may not be amended except by
an instrument signed by the parties hereto.

                                   ARTICLE XII

                              REMEDIES AND WAIVERS

         SECTION 12.01. REMEDIES AND WAIVERS. No waiver of any term shall be
construed as a subsequent waiver of the same term, or a waiver of any other
term, of this Agreement. The failure of any party to assert any of its rights
hereunder will not constitute a waiver of any such rights. The single or partial
exercise of any right, power or remedy provided by law or under this Agreement
shall not preclude any other or further exercise thereof or the exercise of any
right, power or remedy. Except as provided in this Agreement, the rights, powers
and remedies provided in this Agreement are cumulative and not exclusive of any
rights, powers and remedies provided by law.

                                  ARTICLE XIII

                                  SEVERABILITY

         SECTION 13.01. SEVERABILITY. If any provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule of law or public
policy, such provision shall be deemed severable and all other provisions of
this Agreement shall nevertheless remain in full force and effect.

                                   ARTICLE XIV

                                    HEADINGS

         SECTION 14.01. HEADINGS. Section headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

                                       -7-
<PAGE>

                                   ARTICLE XV

                                     NOTICES

         SECTION 15.01. NOTICES. All notices given in connection with this
Agreement shall be in writing. Service of such notices shall be deemed complete:
(i) if hand delivered, on the date of delivery; (ii) if by mail, on the fourth
Business Day following the day of deposit in the United States mail, by
certified or registered mail, first-class postage prepaid; (iii) if sent by
Federal Express or equivalent courier service, on the next Business Day; or (iv)
if by telecopier, upon receipt by sender of confirmation of successful
transmission. Such notices shall be addressed to the parties at the following
address or at such other address for a party as shall be specified by like
notice (except that notices of change of address shall be effective upon
receipt):

         If to Williams:

                  The Williams Companies, Inc.
                  One Williams Center
                  Tulsa, Oklahoma 74172
                  Attention: General Counsel
                  Fax No.: 918/573-5942

         If to Communications:

                  Williams Communications Group. Inc.
                  One Technology Center
                  Tulsa, Oklahoma 74103
                  Attention: General Counsel
                  Fax No.: 918/547-2360

                                   ARTICLE XVI

                                  GOVERNING LAW

         SECTION 16.01. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with, the laws of the State of New York, without giving
effect to the principles of conflict of laws of such state or any other
jurisdiction.

                                  ARTICLE XVII

                                  COUNTERPARTS

         SECTION 17.01. COUNTERPARTS. This Agreement may be executed in
counterparts, each of which shall be an original, but all of which together
shall constitute but one and the same instrument.

                                      -8-
<PAGE>

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

                           THE WILLIAMS COMPANIES, INC.

                           BY:
                              ---------------------------------

                           NAME:
                                -------------------------------

                           TITLE:
                                 ------------------------------

                           WILLIAMS COMMUNICATIONS GROUP, INC.

                           BY:
                              ---------------------------------

                           NAME:
                                -------------------------------

                           TITLE:
                                 ------------------------------

                                      -9-
<PAGE>

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

                           THE WILLIAMS COMPANIES, INC.

                           BY:
                              ---------------------------------

                           NAME:
                                -------------------------------

                           TITLE:
                                 ------------------------------

                           WILLIAMS COMMUNICATIONS GROUP, INC.

                           BY:
                              ---------------------------------

                           NAME:
                                -------------------------------

                           TITLE:
                                 ------------------------------

                                      -10-
<PAGE>

                                    EXHIBIT A
                       GUARANTY INDEMNIFICATION AGREEMENT

                               WILLIAMS GUARANTEES

1. LCI Guaranty: Guaranty of performance under a Construction, IRU and Joint Use
Agreement dated Sept. 26, 1997.

2. Massachusetts Turnpike Authority Guaranty: Guaranty of obligations under an
Easement Agreement dated May 25, 1999.

3. RREEF USA Funding II Guaranty: Guaranty of obligations under a Lease
Agreement effective as of March 1,1997.

4. Forsythe McArthur Associates, Incorporated Guaranty: Guaranty of obligations
under the Master Lease Agreement Number WISOO1 dated February 2, 1995.

5. Spectrum Shareholders Agreement dated June 19, 1998.

                                      -11-

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