Document:

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                                                                     EXHIBIT 4.1

                          NINTH SUPPLEMENTAL INDENTURE

                            DATED AS OF JUNE 10, 2003

                                     BETWEEN

                          THE WILLIAMS COMPANIES, INC.,

                                    AS ISSUER

                                       AND

                              JPMORGAN CHASE BANK,

                                   AS TRUSTEE

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                                    ARTICLE 1
                                   DEFINITIONS

Section 1.01.  Definition of Terms...........................................................    1
Section 1.02.  Rules of Construction.........................................................   25

                                    ARTICLE 2
                               THE SERIES OF NOTES

Section 2.01.  Title of the Securities.......................................................   25
Section 2.02.  Form And Dating...............................................................   25
Section 2.03.  Aggregate Principal Amount....................................................   26
Section 2.04.  Principal Payment Date........................................................   26
Section 2.05.  Interest And Interest Dates...................................................   26
Section 2.06.  Optional Redemption...........................................................   26
Section 2.07.  Redemption with Proceeds of Public Equity Offering............................   27
Section 2.08.  Change Of Control Offer.......................................................   27
Section 2.09.  Defeasance....................................................................   30

                                    ARTICLE 3
                                    COVENANTS

Section 3.01.  Applicability Of Covenants....................................................   30
Section 3.02.  Commission Reports; Financial Statements......................................   30
Section 3.03.  Limitation On Restricted Payments.............................................   31
Section 3.04.  Limitation On Incurrence Of Indebtedness And Issuance Of Preferred Stock......   35
Section 3.05.  Limitation On Liens...........................................................   37
Section 3.06.  Limitation On Dividend And Other Payment Restrictions Affecting Subsidiaries..   38
Section 3.07.  Repurchase Of Notes Upon A Change Of Control..................................   39
Section 3.08.  Limit On Asset Sales..........................................................   40
Section 3.09.  Limitation On Transactions With Affiliates....................................   44
Section 3.10.  Designation Of Restricted And Unrestricted Subsidiaries.......................   46
Section 3.11.  Limitation On Sale And Leaseback Transactions.................................   46
Section 3.12.  Business Activities...........................................................   46
Section 3.13.  Payments For Consent..........................................................   46
Section 3.14.  Limitation On Mergers, Consolidations And Sales Of Assets.....................   47
Section 3.15.  Covenant Termination..........................................................   48

                                    ARTICLE 4
                                EVENTS OF DEFAULT

Section 4.01.  Applicability Of Events Of Default............................................   48
Section 4.02.  Events Of Default Defined.....................................................   48
Section 4.03.  Acceleration..................................................................   51
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Section 4.04.  Waiver Of Existing Defaults...................................................   52
Section 4.05.  Conflict with Base Indenture..................................................   52

                                    ARTICLE 5
                               EXECUTION OF NOTES

Section 5.01.  Execution of Notes............................................................   52

                                    ARTICLE 6
                            MISCELLANEOUS PROVISIONS

Section 6.01.  Ratification..................................................................   53
Section 6.02.  Counterparts..................................................................   53
Section 6.03.  Governing Law.................................................................   53
Section 6.04.  No Recitals, etc..............................................................   53
Section 6.05.  Paying Agent..................................................................   53
Section 6.06.  Liability Of Incorporators, Stockholders, etc.................................   53

Exhibit A. Form of Note......................................................................  A-1
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         NINTH SUPPLEMENTAL INDENTURE, dated as of June 10, 2003 (the "NINTH
SUPPLEMENTAL INDENTURE"), between The Williams Companies, Inc., a corporation
duly organized and existing under the laws of the State of Delaware (the
"COMPANY"), and JPMorgan Chase Bank, a New York banking corporation (as
successor trustee to Bank One Trust Company, National Association (successor in
interest to the First National Bank of Chicago)), as trustee (the "TRUSTEE").

         WHEREAS, the Company executed and delivered the Indenture dated as of
November 10, 1997 (the "BASE INDENTURE") to the Trustee to provide for the
issuance from time to time of the Company's senior, unsecured debentures, notes,
or other evidences of indebtedness (the "SECURITIES"), to be issued in one or
more series as might be determined by the Company under the Base Indenture; and

         WHEREAS, pursuant to the terms of the Base Indenture, the Company
desires to provide for the establishment of a new series of its Securities to be
known as its 8 5/8% Senior Notes due 2010 (the "NOTES"), the form and terms of
such Notes and the terms, provisions and conditions thereof to be set forth as
provided in the Base Indenture and this Ninth Supplemental Indenture (together,
the "INDENTURE"); and

         WHEREAS, the Company has requested that the Trustee execute and deliver
this Ninth Supplemental Indenture and all requirements necessary to make this
Ninth Supplemental Indenture a valid, binding and enforceable instrument in
accordance with its terms, and to make the Notes, when executed, authenticated
and delivered by the Company, the valid, binding and enforceable obligations of
the Company, have been done and performed, and the execution and delivery of
this Ninth Supplemental Indenture has been duly authorized in all respects.

         NOW THEREFORE, in consideration of the purchase and acceptance of the
Notes by the Holders thereof, and for the purpose of setting forth, as provided
in the Base Indenture, the form and terms of the Notes, the Company covenants
and agrees with the Trustee as follows:

                                    ARTICLE 1
                                   DEFINITIONS

         Section 1.01. Definition of Terms.Unless the context otherwise
requires:

                  (a)      except as provided in Section 1.01(c), a term defined
         in the Base Indenture has the same meaning when used in this Ninth
         Supplemental Indenture;

                  (b)      a term defined anywhere in this Ninth Supplemental
         Indenture has the same meaning throughout;

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                  (c)      a term defined anywhere in this Ninth Supplemental
         Indenture that has a meaning inconsistent with the meaning given such
         term in the Base Indenture shall have the meaning given such term in
         this Ninth Supplemental Indenture;

                  (d)      the singular includes the plural and vice versa;

                  (e)      headings are for convenience of reference only and do
         not affect interpretation; and

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

         "ACQUIRED DEBT" means, with respect to any specified Person:

                  (1)      Indebtedness of any other Person existing at the time
         such other Person is merged with or into or became a Subsidiary of such
         specified Person, whether or not such Indebtedness is incurred in
         connection with, or in contemplation of, such other Person merging with
         or into, or becoming a Subsidiary of, such specified Person; and

                  (2)      Indebtedness secured by a Lien encumbering any asset
         acquired by such specified Person.

         "AFFILIATE" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "CONTROL,"
as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise; provided that beneficial ownership of 10% or more of the
Voting Stock of a Person will be deemed to be control. For purposes of this
definition, the terms "CONTROLLING," "CONTROLLED BY" and "UNDER COMMON CONTROL
WITH" have correlative meanings.

         "ASSET SALE" means:

                  (1)      the sale, lease, conveyance or other disposition of
         any assets or rights; provided that the sale, conveyance or other
         disposition of all or substantially all of the assets of the Company
         and its Restricted Subsidiaries taken as a whole will be governed by
         the provisions of Section 3.07 or Section 3.14 hereof and not by the
         provisions of Section 3.08; and

                  (2)      the issuance of Equity Interests in any of the
         Company's Restricted Subsidiaries or the sale of Equity Interests in
         any of its Restricted Subsidiaries.

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         Notwithstanding the preceding, the following items will not be deemed
to be Asset Sales:

                  (1)      any single transaction or series of related
         transactions that involves assets having a fair market value of less
         than $10.0 million;

                  (2)      a transfer of assets between or among the Company and
         its Restricted Subsidiaries,

                  (3)      an issuance of Equity Interests by a Restricted
         Subsidiary to the Company or to another Restricted Subsidiary;

                  (4)      the sale or lease of equipment, inventory, accounts
         receivable or other assets in the ordinary course of business;

                  (5)      the sale or other disposition of cash or Cash
         Equivalents;

                  (6)      dispositions of accounts receivable and related
         assets to a Securitization Subsidiary in connection with a Permitted
         Receivables Financing;

                  (7)      Sale and Leaseback Transactions;

                  (8)      a Restricted Payment or Permitted Investment that is
         permitted by Section 3.03 hereof;

                  (9)      dispositions in the ordinary course of business on
         arm's-length terms consummated pursuant to Oil and Gas Agreements; and

                  (10)     (i) dispositions of property acquired after the date
         hereof required in connection with operating contracts, joint venture
         agreements and lease arrangements entered into after the date hereof in
         the ordinary course of business and on arm's-length terms (which
         disposition is with the other party to such agreement), the aggregate
         value of which shall not exceed $25,000,000 per fiscal year and (ii)
         dispositions required in connection with operating contracts, joint
         venture agreements and lease agreements existing on the date hereof.

         "ATTRIBUTABLE DEBT" in respect of a Sale and Leaseback Transaction
means, at the time of determination, the present value of the obligation of the
lessee for net rental payments during the remaining term of the lease included
in such Sale and Leaseback Transaction including any period for which such lease
has been extended or may, at the option of the lessor, be extended. Such present
value shall be calculated using a discount rate equal to the rate of interest
implicit in such transaction, determined in accordance with GAAP.

         "BENEFICIAL OWNER" has the meaning assigned to such term in Rule 13d-3
and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial

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ownership of any particular "person" (as that term is used in Section 13(d)(3)
of the Exchange Act), such "person" will be deemed to have beneficial ownership
of all securities that such "person" has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
exercisable only upon the occurrence of a subsequent condition. The terms
"BENEFICIALLY OWNS" and "BENEFICIALLY OWNED" have a corresponding meaning.

         "BOARD OF DIRECTORS" means:

                  (1)      with respect to a corporation, the board of directors
         of the corporation or any committee of such board authorized to act on
         its behalf;

                  (2)      with respect to a partnership, the board of directors
         of the general partner of the partnership or any committee of such
         board authorized to act on its behalf; and

                  (3)      with respect to any other Person, the board or
         committee of such Person serving a similar function.

         "CAPITAL LEASE OBLIGATION" means, at the time any determination is to
be made, the amount of the liability in respect of a capital lease that would at
that time be required to be capitalized on a balance sheet in accordance with
GAAP.

         "CAPITAL STOCK" means:

                  (1)      in the case of a corporation, corporate stock;

                  (2)      in the case of an association or business entity, any
         and all shares, interests, participations, rights or other equivalents
         (however designated) of corporate stock;

                  (3)      in the case of a partnership or limited liability
         company, partnership or membership interests (whether general or
         limited); and

                  (4) any other interest or participation that confers on a
         Person the right to receive a share of the profits and losses of, or
         distributions of assets of, the issuing Person.

         "CASH EQUIVALENTS" means:

                  (1)      United States dollars;

                  (2)      securities issued or directly and fully guaranteed or
         insured by the United States government or any agency or
         instrumentality of the United States government (provided that the full
         faith and credit of the United States is pledged in support of those
         securities) having maturities of not more than two years from the date
         of acquisition;

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                  (3)      (i) demand deposits, (ii) certificates of deposit and
         eurodollar time deposits with maturities of one year or less from the
         date of acquisition, (iii) bankers' acceptances with maturities not
         exceeding 365 days and (iv) overnight bank deposits and other similar
         types of investments routinely offered by commercial banks, in each
         case, with any lender party to the Credit Agreement or with any
         domestic commercial bank or trust company having capital and surplus in
         excess of $100.0 million;

                  (4)      repurchase obligations with a term of not more than
         seven days for underlying securities of the types described in clauses
         (2) and (3) above entered into with any financial institution meeting
         the qualifications specified in clause (3) above;

                  (5)      commercial paper rated at least P-2 by Moody's or A-2
         by S&P and in each case maturing within 270 days after the date of
         acquisition;

                  (6)      short-term tax exempt securities, including municipal
         notes, commercial paper, auction rate floaters, and floating rate notes
         rated either P-1 by Moody's or A-1 by S&P and maturing within 270 days
         of acquisition;

                  (7)      securities with maturities of one year or less from
         the date of acquisition issued or fully guaranteed by any state,
         commonwealth or territory of the United States, by any political
         subdivision or taxing authority of any such state, commonwealth or
         territory or by any foreign government, the securities of which state,
         commonwealth, territory, political subdivision, taxing authority or
         foreign government (as the case may be) are rated at least A by Moody's
         or A by S&P;

                  (8)      money market funds the assets of which constitute
         primarily Cash Equivalents of the kinds described in clauses (1)
         through (7) of this definition; and

                  (9)      deposits available for withdrawal on demand with any
         commercial bank not meeting the qualifications specified in clause (3)
         above; provided that all such deposits are made in the ordinary course
         of business, do not remain on deposit for more than 30 consecutive days
         and do not exceed $10.0 million in the aggregate at any one time.

         "CHANGE OF CONTROL" means the occurrence of any of the following:

                  (1)      the direct or indirect sale, transfer, conveyance or
         other disposition (other than by way of merger or consolidation), in
         one or a series of related transactions, of all or substantially all of
         the properties or assets of the Company and its Restricted Subsidiaries
         taken as a whole to

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         any "person" (as that term is used in Section 13(d)(3) of the Exchange
         Act);

                  (2)      the adoption of a plan relating to the liquidation or
         dissolution of the Company;

                  (3)      the consummation of any transaction (including,
         without limitation, any merger or consolidation) the result of which is
         that, any "person" or "group" (as such terms are used for purposes of
         Sections 13(d) and 14(d) of the Exchange Act) (other than a trustee or
         other fiduciary holding securities under an employee benefit plan of
         the Company or any of its Subsidiaries) becomes the Beneficial Owner,
         directly or indirectly, of more than 50% of the Voting Stock of the
         Company, measured by voting power rather than number of shares;

                  (4)      the first day on which a majority of the members of
         the Board of Directors of the Company are not Continuing Directors; or

                  (5)      the Company consolidates with, or merges with or
         into, any Person, or any Person consolidates with, or merges with or
         into, the Company, in any such event pursuant to a transaction in which
         any of the outstanding Voting Stock of the Company or such other Person
         is converted into or exchanged for cash, securities or other property,
         other than any such transaction where the Voting Stock of the Company
         outstanding immediately prior to such transaction is converted into or
         exchanged for Voting Stock (other than Disqualified Stock) of the
         surviving or transferee Person constituting a majority of the
         outstanding shares of such Voting Stock of such surviving or transferee
         Person (immediately after giving effect to such issuance).

          "CONSOLIDATED CASH FLOW" means, with respect to any specified Person
for any period, the Consolidated Net Income of such Person for such period plus
(without duplication):

                  (1)      an amount equal to any extraordinary loss plus any
         net loss realized by such Person or any of its Subsidiaries in
         connection with an Asset Sale, to the extent such losses were deducted
         in computing such Consolidated Net Income; plus

                  (2)      provision for taxes based on income or profits of
         such Person and its Restricted Subsidiaries for such period, to the
         extent that such provision for taxes was deducted in computing such
         Consolidated Net Income; plus

                  (3)      consolidated interest expense of such Person and its
         Restricted Subsidiaries for such period, whether paid or accrued and
         whether or not capitalized (including, without limitation, amortization
         of

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         debt issuance costs and original issue discount, non-cash interest
         payments, the interest component of any deferred payment obligations,
         the interest component of all payments associated with Capital Lease
         Obligations, imputed interest with respect to Attributable Debt,
         commissions, discounts and other fees and charges incurred in respect
         of letter of credit or bankers' acceptance financings, and net of the
         effect of all payments made or received pursuant to Related Interest
         Rate or Currency Hedges), to the extent that any such expense was
         deducted in computing such Consolidated Net Income; plus

                  (4)      depreciation, amortization (including amortization of
         goodwill and other intangibles but excluding amortization of prepaid
         cash expenses that were paid in a prior period) and other non-cash
         items (excluding any such non-cash item to the extent that it
         represents an accrual of or reserve for cash expenses in any future
         period or amortization of a prepaid cash expense that was paid in a
         prior period) of such Person and its Subsidiaries for such period to
         the extent that such depreciation, amortization and other non-cash
         items were deducted in computing such Consolidated Net Income; plus

                  (5)      unrealized non-cash losses resulting from foreign
         currency balance sheet adjustments required by GAAP to the extent such
         losses were deducted in computing such Consolidated Net Income; plus

                  (6)      all losses incurred as a result of EM&T Portfolio
         Disposition Transactions, to the extent such losses were deducted in
         computing such Consolidated Net Income, minus

                  (7)      all gains as a result of EM&T Portfolio Disposition
         Transactions, to the extent such gains were included in computing such
         Consolidated Net Income; plus

                  (8)      all extraordinary, unusual or non-recurring items of
         gain or loss, or revenue or expense to the extent such gains or losses
         were added or deducted in computing such Consolidated Net Income; minus

                  (9)      non-cash items increasing such Consolidated Net
         Income for such period, other than the accrual of revenue in the
         ordinary course of business,

in each case, on a consolidated basis and determined (where applicable) in
accordance with GAAP.

         "CONSOLIDATED NET INCOME" means, with respect to any specified Person
for any period, the aggregate of the Net Income of such Person and its
Restricted Subsidiaries for such period, on a consolidated basis, determined in
accordance with GAAP; provided that:

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                  (1)      the Net Income (but not loss) of any Person that is
         not a Restricted Subsidiary or that is accounted for by the equity
         method of accounting will be included only to the extent of the amount
         of dividends or distributions paid in cash to the specified Person or a
         Restricted Subsidiary of the Person;

                  (2)      the Net Income of any Restricted Subsidiary will be
         excluded to the extent that the declaration or payment of dividends or
         similar distributions by that Restricted Subsidiary of that Net Income
         is not at the date of determination permitted without any prior
         governmental approval (that has not been obtained) or, directly or
         indirectly, by operation of the terms of its charter or any agreement,
         instrument, judgment, decree, order, statute, rule or governmental
         regulation applicable to that Restricted Subsidiary or its
         stockholders;

                  (3)      the Net Income of any Person acquired in a pooling of
         interests transaction for any period prior to the date of such
         acquisition will be excluded; and

                  (4)      the cumulative effect of a change in accounting
         principles will be excluded.

         "CONSOLIDATED NET TANGIBLE ASSETS" means, with respect to any Person at
any date of determination, the aggregate amount of total assets included in such
Person's most recent quarterly or annual consolidated balance sheet prepared in
accordance with GAAP less applicable reserves reflected in such balance sheet,
after deducting the following amounts: (i) all current liabilities reflected in
such balance sheet, and (ii) all goodwill, trademarks, patents, unamortized debt
discounts and expenses and other like intangibles reflected in such balance
sheet.

         "CONTINUING DIRECTORS" means, as of any date of determination, any
member of the Board of Directors of the Company who:

                  (1)      was a member of such Board of Directors on the date
         hereof; or

                  (2)      was nominated for election or elected to such Board
         of Directors with the approval of a majority of the Continuing
         Directors who were members of such Board at the time of such nomination
         or election.

         "CREDIT AGREEMENT" means the Credit Agreement dated June 6, 2003 by and
among the Company, Northwest Pipeline Corporation and Transcontinental Gas Pipe
Line Corporation as Borrowers and the banks named therein as Banks, the "Issuing
Banks", "Co-Lead Arrangers" and other parties referred to therein, and Citicorp
USA, Inc., as Agent and Collateral Agent, including any related notes,
guarantees, collateral documents, instruments and agreements executed in

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connection therewith, and in each case as amended, modified, renewed, refunded,
replaced or refinanced from time to time.

         "CREDIT FACILITIES" means, one or more debt facilities (including,
without limitation, (1) the Credit Agreement, (2) the New RMT Loan, and (3) one
or more Permitted Receivables Financings) or commercial paper facilities, in
each case with banks or other institutional lenders, or pursuant to intercompany
loan or advance arrangements between the Company as borrower, on the one hand,
and one or more of its Subsidiaries, on the other (provided that in the case of
such intercompany arrangements with the Company's Subsidiaries that such
arrangements are on terms consistent with practices in existence on the date
hereof) providing for revolving credit loans, term loans, receivables financing
(including through the sale of receivables to such lenders or to special purpose
entities formed to borrow from such lenders against such receivables) or letters
of credit, in each case, as amended, restated, modified, renewed, refunded,
replaced or refinanced in whole or in part from time to time.

         "DEFAULT" means any event that is, or with the passage of time or the
giving of notice or both would be, an Event of Default.

         "DISQUALIFIED STOCK" means any Capital Stock that, by its terms (or by
the terms of any security into which it is convertible, or for which it is
exchangeable, in each case at the option of the holder of the Capital Stock), or
upon the happening of any event, matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the Capital Stock, in whole or in part, on or prior to the date that
is 91 days after the date on which the Notes mature. Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock
solely because the holders of the Capital Stock have the right to require the
Company to repurchase such Capital Stock upon the occurrence of a Change of
Control or an Asset Sale will not constitute Disqualified Stock if the terms of
such Capital Stock provide that the Company may not repurchase or redeem any
such Capital Stock pursuant to such provisions unless such repurchase or
redemption complies with Section 3.03 hereof.

         "EM&T PORTFOLIO DISPOSITION TRANSACTION" means the sale, buyout,
liquidation or material restructuring, not in the ordinary course of business,
of a tolling or full requirements structured transaction in existence on the
date hereof, and associated Hedging Obligations; provided that in the good faith
belief of an executive officer of the Company, such sale, buyout, liquidation or
restructuring is consistent with the effort to reduce the risk profile and
overall financial commitment of the Company's Energy Marketing & Trading
business.

         "EQUITY INTERESTS" means Capital Stock and all warrants, options or
other rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock).

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         "EQUITY OFFERING" means a primary issuance, after the date hereof, of
Capital Stock (other than Disqualified Stock) of the Company either through an
offering pursuant to an effective registration statement under the Securities
Act (other than an issuance registered on Form S-4 or S-8 or any successor
thereto) or pursuant to a private placement (but excluding in any event any
issuance pursuant to an exemption from the registration requirements of the
Securities Act or any issuance pursuant to employee benefit plans or otherwise
in compensation to officers, directors or employees).

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

         "EXISTING INDEBTEDNESS" means Indebtedness of the Company and its
Restricted Subsidiaries (other than Indebtedness under the Credit Facilities) in
existence on the date hereof, until such amounts are repaid.

         "FIXED CHARGE COVERAGE RATIO" means with respect to any specified
Person for any period, the ratio of the Consolidated Cash Flow of such Person
for such period to the Fixed Charges of such Person for such period. In the
event that the specified Person or any of its Restricted Subsidiaries incurs,
assumes, Guarantees, repays, repurchases or redeems any Indebtedness (other than
ordinary working capital borrowings) or issues, repurchases or redeems preferred
stock subsequent to the commencement of the period for which the Fixed Charge
Coverage Ratio is being calculated and on or prior to the date on which the
event for which the calculation of the Fixed Charge Coverage Ratio is made (the
"CALCULATION DATE"), then the Fixed Charge Coverage Ratio will be calculated
giving pro forma effect to such incurrence, assumption, Guarantee, repayment,
repurchase or redemption of Indebtedness, or such issuance, repurchase or
redemption of preferred stock, and the use of the proceeds therefrom as if the
same had occurred at the beginning of the applicable four-quarter reference
period.

         In addition, for purposes of calculating the Fixed Charge Coverage
Ratio:

                  (1)      acquisitions that have been made by the specified
         Person or any of its Restricted Subsidiaries, including through
         mergers, consolidations or otherwise (including acquisitions of assets
         used in a Permitted Business and Qualifying Expansion Projects) and
         including any related financing transactions (including any repayment
         of Indebtedness), during the four-quarter reference period or
         subsequent to such reference period and on or prior to the Calculation
         Date will be given pro forma effect as if they had occurred or (in the
         case of any Qualifying Expansion Projects) have been completed and in
         service on the first day of the four-quarter reference period,
         including any Consolidated Cash Flow (including interest income
         reasonably anticipated by such Person to be received from Cash or Cash
         Equivalents held by such Person or any of its Restricted Subsidiaries)
         and any pro forma expense and cost reductions

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         that have occurred or are reasonably expected to occur, in the
         reasonable judgment of the chief financial officer or chief accounting
         officer of the Company (regardless of whether those cost savings or
         operating improvements could then be reflected in pro forma financial
         statements in accordance with Regulation S-X promulgated under the
         Securities Act or any other regulation or policy of the Commission
         related thereto) but in the case of Qualifying Expansion Projects, only
         to the extent of Qualifying Expansion Project Amounts;

                  (2)      the Consolidated Cash Flow attributable to
         discontinued operations, as determined in accordance with GAAP, and
         operations or businesses disposed of prior to the Calculation Date,
         will be excluded; and

                  (3)      the Fixed Charges attributable to discontinued
         operations, as determined in accordance with GAAP, and operations or
         businesses disposed of prior to the Calculation Date, will be excluded,
         but only to the extent that the obligations giving rise to such Fixed
         Charges will not be obligations of the specified Person or any of its
         Restricted Subsidiaries following the Calculation Date.

         "FIXED CHARGES" means, with respect to any specified Person for any
period, the sum, without duplication, of:

                  (1)      the consolidated interest expense of such Person and
         its Restricted Subsidiaries for such period, whether paid or accrued,
         including, without limitation, amortization of debt issuance costs and
         original issue discount, non-cash interest payments, the interest
         component of any deferred payment obligations, the interest component
         of all payments associated with Capital Lease Obligations, imputed
         interest with respect to Attributable Debt, commissions, discounts and
         other fees and charges incurred in respect of letter of credit or
         bankers' acceptance financings, any premiums, fees, discounts,
         expenses and losses on the sale of accounts receivable (and any
         amortization thereof) in connection with a Permitted Receivables
         Financing, and net of the effect of all payments made or received
         pursuant to Related Interest Rate or Currency Hedges ; plus

                  (2)      the consolidated interest of such Person and its
         Restricted Subsidiaries that was capitalized during such period; plus

                  (3)      any interest expense on Indebtedness of another
         Person that is Guaranteed by such Person or one of its Restricted
         Subsidiaries or secured by a Lien on assets of such Person or one of
         its Restricted Subsidiaries, whether or not such Guarantee or Lien is
         called upon; plus

                  (4)      the product of (a) all dividends, whether paid or
         accrued and whether or not in cash, on any series of preferred stock of
         such Person

                                       11

<PAGE>

         or any of its Restricted Subsidiaries, other than dividends on Equity
         Interests payable solely in Equity Interests of the Company (other than
         Disqualified Stock) or to the Company or a Restricted Subsidiary of the
         Company, times (b) a fraction, the numerator of which is one and the
         denominator of which is one minus the then current combined federal,
         state and local statutory tax rate of such Person, expressed as a
         decimal, in each case, on a consolidated basis and in accordance with
         GAAP.

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

         "GUARANTEE" means a guarantee other than by endorsement of negotiable
instruments for collection in the ordinary course of business, direct or
indirect, in any manner including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof, of all or any part of any Indebtedness.

         "HEDGING OBLIGATIONS" means, with respect to any specified Person, the
obligations of such Person incurred in the normal course of business and
consistent with past practices and not for speculative purposes under:

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

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

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

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

         "INDEBTEDNESS" means, with respect to any specified Person, any
obligation of such Person, whether or not contingent:

                  (1)      in respect of borrowed money;

                                       12

<PAGE>

                  (2)      evidenced by bonds (but not including performance or
         surety bonds), notes, debentures or similar instruments or letters of
         credit (or reimbursement agreements in respect thereof);

                  (3)      in respect of banker's acceptances;

                  (4)      representing Capital Lease Obligations;

                  (5)      representing the balance deferred and unpaid
         of the purchase price of any property, except any such balance that
         constitutes an accrued expense or trade payable;

                  (6)      representing any Related Interest Rate or Currency
         Hedges, or

                  (7)      under Permitted Receivables Financings;

         if and to the extent any of the preceding items (other than letters of
credit and Related Interest Rate or Currency Hedges and obligations in respect
of Permitted Receivables Financings) would appear as a liability upon a balance
sheet of the specified Person prepared in accordance with GAAP. In addition, the
term "Indebtedness" includes all Indebtedness of others secured by a Lien on any
asset of the specified Person (whether or not such Indebtedness is assumed by
the specified Person) and, to the extent not otherwise included, the Guarantee
by the specified Person of any indebtedness of any other Person.

         The amount of any Indebtedness outstanding as of any date will be:

                  (1)      the accreted value of the Indebtedness, in the case
         of any Indebtedness issued with original issue discount;

                  (2)      in the case of any Permitted Receivables Financing,
         the net unrecovered principal amount of the accounts receivable sold
         thereunder at such date, or other similar amount representing the
         principal financing amount thereof;

                  (3)      in the case of any Related Interest Rate or Currency
         Hedges, the net amount payable if such Related Interest Rate or
         Currency Hedges is terminated at that time due to default by such
         Person (after giving effect to any contractually permitted set-off);
         and

                  (4)      the principal amount of the Indebtedness in the case
         of any other Indebtedness.

         "INVESTMENT GRADE DATE" has the meaning set forth in Section 3.15
hereof.

                                       13

<PAGE>

         "INVESTMENT GRADE RATING" means a rating equal to or higher than Baa3
by Moody's (or its equivalent under any successor rating categories of Moody's)
and BBB- by S&P (or its equivalent under any successor rating categories of
S&P).

         "INVESTMENTS" means, with respect to any Person, all direct or indirect
investments by such Person in other Persons (including Affiliates) in the forms
of loans (including Guarantees (other than Guarantees of Indebtedness of the
Company or any of its Restricted Subsidiaries to the extent permitted by Section
3.04 hereof)), advances or capital contributions (excluding commission, travel
and similar advances to officers and employees made in the ordinary course of
business and excluding trade payables of the Company and its Subsidiaries
arising in the ordinary course of business), purchases or other acquisitions for
consideration of Indebtedness, Equity Interests or other securities, together
with all items that are or would be classified as investments on a balance sheet
prepared in accordance with GAAP. If the Company or any Subsidiary of the
Company sells or otherwise disposes of any Equity Interests of any direct or
indirect Subsidiary of the Company such that, after giving effect to any such
sale or disposition, such Person is no longer a Subsidiary of the Company, the
Company will be deemed to have made an Investment on the date of any such sale
or disposition equal to the fair market value of the Equity Interests of such
Subsidiary not sold or disposed of in an amount determined as provided in
paragraph (c) of Section 3.03 hereof. The acquisition by the Company or any
Subsidiary of the Company of a Person that holds an Investment in a third Person
will be deemed to be an Investment by the Company or such Subsidiary in such
third Person in an amount equal to the fair market value of the Investment held
by the acquired Person in such third Person in an amount determined as provided
in paragraph (c) of Section 3.03 hereof.

         "LIEN" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

         "MAKE-WHOLE AMOUNT" with respect to a Note means an amount equal to the
excess, if any, of (1) the present value of the remaining interest, premium and
principal payments due on such Note (excluding any portion of such payments of
interest accrued as of the redemption date), computed using a discount rate
equal to the Treasury Rate plus 50 basis points, over (2) the outstanding
principal amount of such Note. "TREASURY RATE" is defined as the yield to
maturity (calculated on a semi-annual bond-equivalent basis) at the time of the
computation of United States Treasury securities with a constant maturity (as
compiled by and published in the most recent Federal Reserve Statistical Release
H.15 (519), which has become publicly available at least two Business

                                       14

<PAGE>

Days prior to the date of the related redemption notice given pursuant to
Section 12.2 of the Base Indenture or, if such Statistical Release is no longer
published, any publicly available source of similar market data) most nearly
equal to the then remaining maturity of the Notes; provided that if the
Make-Whole Average Life of such Note is not equal to the constant maturity of
the United States Treasury security for which a weekly average yield is given,
the Treasury Rate shall be obtained by linear interpolation (calculated to the
nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the
Make-Whole Average Life of such Note is less than one year, the weekly average
yield on actually traded United States Treasury securities adjusted to a
constant maturity of one year shall be used. "MAKE-WHOLE AVERAGE LIFE" means the
number of years (calculated to the nearest one-twelfth) between the date of
redemption and the Stated Maturity of the Notes.

         "MAKE-WHOLE PRICE" means the sum of the Outstanding principal amount of
the Notes to be redeemed plus the Make-Whole Amount of those Notes.

         "MATURITY DATE" means, with respect to any Note, the date on which any
principal of such Note becomes due and payable, whether at the Stated Maturity
with respect to such principal or by declaration of acceleration, call for
redemption or purchase or otherwise.

         "MOODY'S" means Moody's Investors Service, Inc. and its successors.

         "NET INCOME" means, with respect to any specified Person, the net
income (loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of preferred stock dividends, excluding, however:

                  (1)      any gain (but not loss), together with any related
         provision for taxes on such gain (but not loss), realized in connection
         with: (a) any Asset Sale; or (b) the disposition of any securities by
         such Person or any of its Subsidiaries or the extinguishment of any
         Indebtedness of such Person or any of its Subsidiaries; and

                  (2)      any extraordinary gain (but not loss), together with
         any related provision for taxes on such extraordinary gain (but not
         loss).

         "NET PROCEEDS" means the aggregate cash proceeds received by the
Company or any of its Restricted Subsidiaries in respect of any Asset Sale
(including, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of
the direct costs relating to such Asset Sale, including, without limitation,
legal, accounting and investment banking fees, and sales commissions, and any
relocation expenses incurred as a result of the Asset Sale, taxes paid or
payable as a result of the Asset Sale (as reasonably estimated by the Company),
in each case, after taking into

                                       15

<PAGE>

account any available tax credits or deductions and any tax sharing
arrangements, and amounts required to be applied to the repayment of
Indebtedness secured by a Lien on the asset or assets that were the subject of
such Asset Sale and any reserve for adjustment in respect of the sale price of
such asset or assets established in accordance with GAAP.

         "NEW RMT LOAN" means the Term Loan Agreement dated as of May 30, 2003
among Williams Production Holdings LLC, Williams Production RMT Company, as
borrower, the "Lenders", "Arrangers", "Co-Syndication Agents" and "Documentation
Agent" referred to therein, and Lehman Commercial Paper Inc., as Administrative
Agent, including any related notes, guarantees, collateral documents,
instruments and agreements executed in connection therewith, and as the same may
further be amended, modified, renewed, refunded, replaced or refinanced from
time to time.

         "NON-RECOURSE DEBT" means Indebtedness:

                  (1)      as to which neither the Company nor any of its
         Restricted Subsidiaries (a) provides credit support of any kind
         (including any undertaking, agreement or instrument that would
         constitute Indebtedness), (b) is directly or indirectly liable as a
         guarantor or otherwise, or (c) constitutes the lender;

                  (2)      no default with respect to which (including any
         rights that the holders of the Indebtedness may have to take
         enforcement action against an Unrestricted Subsidiary) would permit
         upon notice, lapse of time or both any holder of any other Indebtedness
         (other than the Notes) of the Company or any of its Restricted
         Subsidiaries to declare a default on such other Indebtedness or cause
         the payment of the Indebtedness to be accelerated or payable prior to
         its Stated Maturity; and

                  (3)      as to which the lenders have been notified in writing
         that they will not have any recourse to the stock or assets of the
         Company or any of its Restricted Subsidiaries.

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

         "OIL AND GAS AGREEMENTS" means operating agreements, processing
agreements, farm-out and farm-in agreements, development agreements, area of
mutual interest agreements, contracts for the gathering and/or transportation of
oil and natural gas, unitization agreements, pooling arrangements, joint bidding
agreements, joint venture agreements, participation agreements, surface use
agreements, service contracts, tax credit agreements, leases and subleases of
oil and gas properties or other similar customary agreements; transactions,
properties, interests or arrangements, howsoever designated, in each case made
or entered

                                       16

<PAGE>

into in the ordinary course of business as conducted by the Company and its
Restricted Subsidiaries.

         "PERMITTED BUSINESS" means the lines of business conducted by the
Company and its Restricted Subsidiaries on the date hereof and any business
incidental or reasonably related thereto or which is a reasonable extension
thereof as determined in good faith by the Board of Directors of the Company and
set forth in an Officers' Certificate delivered to the Trustee.

         "PERMITTED INVESTMENTS" means:

                  (1)      any Investment in the Company or in a Restricted
         Subsidiary of the Company;

                  (2)      any Investment in Cash Equivalents;

                  (3)      any Investment by the Company or any Subsidiary of
         the Company in a Person, if as a result of such Investment:

                           (a)      such Person becomes a Restricted Subsidiary
                  of the Company; or

                           (b)      such Person is merged, consolidated or
                  amalgamated with or into, or transfers or conveys
                  substantially all of its assets to, or is liquidated into, the
                  Company or a Restricted Subsidiary of the Company;

                  (4)      any Investment made as a result of the receipt of
         non-cash consideration from an Asset Sale that was made pursuant to and
         in compliance with Section 3.08 hereof, or any non-cash consideration
         that was excluded from the definition of Asset Sale pursuant to clause
         (1) or (4) (for the sale or lease of equipment) pursuant to the second
         paragraph of such definition;

                  (5)      any Investment in any Person solely in exchange for
         the issuance of Equity Interests (other than Disqualified Stock) of the
         Company;

                  (6)      any purchase or other acquisition of senior debt of
         the Company or any Restricted Subsidiary (other than Indebtedness that
         is subordinated to the Notes);

                  (7)      any Investments received in compromise of obligations
         of such persons incurred in the ordinary course of trade creditors or
         customers that were incurred in the ordinary course of business,
         including pursuant to any plan of reorganization or similar arrangement
         upon the bankruptcy or insolvency of any trade creditor or customer;

                                       17

<PAGE>

                  (8)      Hedging Obligations incurred in the ordinary course
         of business;

                  (9)      Investments in a Securitization Subsidiary that are
         necessary or desirable to effect any Permitted Receivables Financing;

                  (10)     Investments by the Company or any Restricted
         Subsidiary in the Discovery, Gulfstream, Aux Sable and Accroven joint
         ventures existing on the date hereof in an aggregate amount for each
         such joint venture (exclusive of equity Investments therein existing on
         the date hereof) not in excess of the Company's direct or indirect
         equity percentage interest of the total Indebtedness of such joint
         venture on the date hereof, together with, in the case of Gulfstream,
         such percentage interest of additional Indebtedness incurred in
         accordance with expansions thereof that have been publicly announced
         prior to the date hereof;

                  (11)     Investments by the Company or any Restricted
         Subsidiary in joint ventures operating primarily in a Permitted
         Business in an amount which, together with the amount of all other
         Investments made after the date hereof in reliance on this clause (11),
         does not exceed 3% of Consolidated Net Tangible Assets;

                  (12)     reclassification of any Investment initially made in
         the form of equity as a loan or advance, and reclassification of any
         Investment initially made in the form of a loan or advance as equity;
         provided in each case that the amount of such Investment is not
         increased thereby; and

                  (13)     other Investments in any Person having an aggregate
         fair market value (measured on the date each such Investment was made
         and without giving effect to subsequent changes in value), when taken
         together with all other Investments made pursuant to this clause that
         are at the time outstanding not to exceed $50 million.

         "PERMITTED LIENS" means:

                  (1)      Liens of the Company and any Restricted Subsidiary
         securing any Credit Facility that was permitted by the terms of this
         Indenture to be incurred and all Obligations and Hedging Obligations
         relating to such Indebtedness (but excluding any Credit Facility with
         any Subsidiary or other Affiliate of the Company, as lender);

                  (2)      Liens (i) in favor of the Company, or (ii) on
         property of a Restricted Subsidiary in favor of another Restricted
         Subsidiary;

                  (3)      Liens on property of a Person existing at the time
         such Person is merged with or into or consolidated with or acquired by
         the Company or any Restricted Subsidiary of the Company or renewals or

                                       18

<PAGE>

         replacement of such Liens in connection with the incurrence of
         Permitted Refinancing Indebtedness to refinance Indebtedness secured by
         such Liens; provided that such Liens were in existence prior to the
         contemplation of such merger, consolidation or acquisition and do not
         extend to any assets other than those of the Person merged into or
         consolidated with the Company or the Restricted Subsidiary;

                  (4)      Liens on property existing at the time of acquisition
         of the property by the Company or any Restricted Subsidiary of the
         Company or renewals or replacement of such Liens in connection with the
         incurrence of Permitted Refinancing Indebtedness to refinance
         Indebtedness secured by such Liens; provided that such Liens were in
         existence prior to the contemplation of such acquisition;

                  (5)      Liens to secure the performance of tenders, bids,
         statutory obligations, surety or appeal bonds, performance bonds or
         other obligations of a like nature incurred in the ordinary course of
         business;

                  (6)      Liens to secure Indebtedness (including Capital Lease
         Obligations) (x) permitted by clause (4) of the second paragraph of
         Section 3.04 hereof covering only the assets acquired with such
         Indebtedness or similar assets acquired in connection with the
         incurrence of such Permitted Refinancing Indebtedness or (y) permitted
         by clause (5) of such paragraph, to the extent that such Permitted
         Refinancing Indebtedness is in respect of Indebtedness initially
         incurred under clause (4) (whether or not subsequently incurred as
         Permitted Refinancing Indebtedness);

                  (7)      Liens existing on the date hereof;

                  (8)      Liens for taxes, assessments or governmental charges
         or claims that are not yet delinquent or that are being contested in
         good faith by appropriate proceedings promptly instituted and
         diligently concluded; provided that any reserve or other appropriate
         provision as is required in conformity with GAAP has been made
         therefor;

                  (9)      Liens on assets of Unrestricted Subsidiaries that
         secure Non-Recourse Debt of Unrestricted Subsidiaries;

                  (10)     Liens on accounts receivable and related assets and
         proceeds thereof arising in connection with a Permitted Receivables
         Financing;

                  (11)     Liens arising under Oil and Gas Agreements;

                  (12)     any mortgage which is payable, both with respect to
         principal and interest, solely out of the proceeds of oil, gas, coal or
         other

                                       19

<PAGE>

         minerals or timber to be produced from the property subject thereto
         and to be sold or delivered by the Company or one of its Restricted
         Subsidiaries, including any interest of the character commonly
         referred to as a "production payment";

                  (13)     any mortgage created or assumed by a Restricted
         Subsidiary on oil, gas, coal or other mineral or timber property,
         owned or leased by a Restricted Subsidiary to secure loans to such
         Subsidiary for the purposes of developing such properties, including
         any interest of the character commonly referred to as a "production
         payment"; provided, however, that neither the Company nor any other
         Subsidiary shall assume or guarantee such loans or otherwise be liable
         in respect thereto;

                  (14)     Liens granted in cash collateral to support the
         issuance of letters of credit in an aggregate face amount not exceeding
         $30.0 million;

                  (15)     Liens pursuant to master netting agreements entered
         into in the ordinary course of business in connection with Hedging
         Obligations; and

                  (16)     Liens with respect to Indebtedness and other
         obligations that at the time of incurrence do not exceed in the
         aggregate for all such obligations under this clause (16) 15% of the
         Consolidated Net Tangible Assets of the Company.

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

         "PERMITTED REFINANCING INDEBTEDNESS" means any Indebtedness of the
Company or any of its Restricted Subsidiaries issued in exchange for, or the net
proceeds of which are used to extend, refinance, renew, replace, defease or
refund other Indebtedness of the Company or any of its Restricted Subsidiaries
(other than intercompany Indebtedness); provided that:

                  (1)      the principal amount (or accreted value, if
         applicable) of such Permitted Refinancing Indebtedness does not exceed
         the principal amount (or accreted value, if applicable) of the
         Indebtedness extended, refinanced, renewed, replaced, defeased or
         refunded (plus all accrued interest on the Indebtedness and the amount
         of all expenses and premiums incurred in connection therewith) and any
         premiums paid on the Indebtedness so extended, refinanced, renewed,
         replaced, defeased or refunded;

                                       20

<PAGE>

                  (2)      if such Permitted Refinancing Indebtedness is issued
         on or after the first anniversary of the date hereof, such Permitted
         Refinancing Indebtedness has a final maturity date later than the final
         maturity date of, and has a Weighted Average Life to Maturity equal to
         or greater than the Weighted Average Life to Maturity of, the
         Indebtedness being extended, refinanced, renewed, replaced, defeased or
         refunded;

                  (3)      if such Permitted Refinancing Indebtedness is issued
         on or after the first anniversary of the date hereof, and the
         Indebtedness being extended, refinanced, renewed, replaced, defeased or
         refunded is subordinated in right of payment to the Notes, such
         Permitted Refinancing Indebtedness has a final maturity date later than
         the final maturity date of, and is subordinated in right of payment to,
         the Notes, as the case may be, on terms at least as favorable to the
         Holders of Notes as those contained in the documentation governing the
         Indebtedness being extended, refinanced, renewed, replaced, defeased or
         refunded; and

                  (4)      such Indebtedness is incurred either by the Company
         or by the Subsidiary who is the obligor on the Indebtedness being
         extended, refinanced, renewed, replaced, defeased or refunded.

         "PERSON" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, limited
liability company or government or other entity.

         "QUALIFYING EXPANSION PROJECT" means any capital expansion project that
has increased or will increase the physical capacity of the pipeline system of
the Company and its Restricted Subsidiaries; provided that such project has been
completed and the assets are in service at, or the Company reasonably believes
that the in-service date of the project will be within twelve months after, the
Calculation Date.

         "QUALIFYING EXPANSION PROJECT AMOUNTS" means with respect to any
calculation of pro forma amounts under the Fixed Charge Coverage Ratio
additional revenues (if any) and related expenses for any Qualifying Expansion
Project for the portion of the four-quarter period prior to the in-service date
of such Qualifying Expansion Project (the "ESTIMATION PERIOD"); provided that
revenues and related expenses anticipated from any Qualifying Expansion Project
during any Estimation Period shall be included in such calculation only to the
extent (1) of the portion of the capacity of such Qualifying Expansion Project
that is committed under a long-term firm transportation contract on customary
terms (as determined in good faith by the Company) with a counterparty that has
an Investment Grade Rating of its long-term debt from at least one of S&P and
Moody's and (2) the aggregate amount of Qualifying Expansion Project Amounts for
all Qualifying Expansion Projects included in any such calculation does not
exceed 25% of the aggregate revenues of the Company and its Restricted

                                       21

<PAGE>

Subsidiaries for such period, determined for this purpose on a pro forma basis
but before inclusion of any Qualifying Expansion Project Amounts.

         "RATING AGENCY" means each of S&P and Moody's, or if S&P or Moody's or
both shall not make a rating on the Notes publicly available, a nationally
recognized statistical rating agency or agencies, as the case may be, selected
by the Company (as evidenced by a resolution of the Company's Board of
Directors), which shall be substituted for S&P or Moody's, or both, as the case
may be.

         "RELATED INTEREST RATE OR CURRENCY HEDGE" means any Hedging Obligation
entered into by the Company and/or any of its Restricted Subsidiaries of the
type referred to in items (i) or (ii) of the definition thereof, and provided
that such Hedging Obligation was entered into with respect to other Indebtedness
of the Company and/or its Restricted Subsidiaries to protect against
fluctuations in interest rates or currency exchange rates with respect to such
other Indebtedness.

         "RESTRICTED INVESTMENT" means an Investment other than a Permitted
Investment.

         "RESTRICTED SUBSIDIARY" of a Person means any Subsidiary of the
referent Person that is not an Unrestricted Subsidiary.

         "S&P" means Standard and Poor's, a division of The McGraw-Hill
Companies, Inc., and its successors.

         "SALE AND LEASEBACK TRANSACTION" means any arrangement with any Person
(other than the Company or a Subsidiary), or to which any such Person is a
party, providing for the leasing, pursuant to a capital lease that would at such
time be required to be capitalized on a balance sheet in accordance with GAAP,
to the Company or a Restricted Subsidiary of any property or asset which has
been or is to be sold or transferred by the Company or such Restricted
Subsidiary to such Person or to any other Person (other than the Company or a
Subsidiary), to which funds have been or are to be advanced by such Person.

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         "SECURITIZATION SUBSIDIARY" means a Subsidiary of the Company

                  (1)      that is designated a "Securitization Subsidiary" by
         the Company's Board of Directors,

                  (2)      that does not engage in, and whose charter prohibits
         it from engaging in, any activities other than Permitted Receivables
         Financings and any activity necessary, incidental or related thereto,

                                       22

<PAGE>

                  (3)      no portion of the Indebtedness or any other
         obligation, contingent or otherwise, of which

                           (A) is Guaranteed by the Company or any Restricted
                  Subsidiary of the Company,

                           (B) is recourse to or obligates the Company or any
                  Restricted Subsidiary of the Company in any way, or

                           (C) subjects any property or asset of the Company or
                  any Restricted Subsidiary of the Company, directly or
                  indirectly, contingently or otherwise, to the satisfaction
                  thereof, and

                  (4)      with respect to which neither the Company nor any
         Restricted Subsidiary of the Company (other than an Unrestricted
         Subsidiary) has any obligation to maintain or preserve such its
         financial condition or cause it to achieve certain levels of operating
         results

         other than, in respect of clauses (3) and (4), pursuant to customary
representations, warranties, covenants and indemnities entered into in
connection with a Permitted Receivables Financing.

         "SIGNIFICANT SUBSIDIARY" means any Subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date hereof.

         "STATED MATURITY" means, with respect to any installment of interest or
principal on any Indebtedness, the date on which the payment of interest or
principal was scheduled to be paid in the original documentation governing such
Indebtedness, and will not include any contingent obligations to repay, redeem
or repurchase any such interest or principal prior to the date originally
scheduled for the payment thereof.

         "SUBSIDIARY" means, with respect to any specified Person:

                  (1)      any corporation, association or other business entity
         of which more than 50% of the total voting power of shares of Capital
         Stock entitled (without regard to the occurrence of any contingency) to
         vote in the election of directors, managers or trustees of the
         corporation, association or other business entity is at the time owned
         or controlled, directly or indirectly, by that Person or one or more of
         the other Subsidiaries of that Person (or a combination thereof); and

                  (2)      any partnership (a) the sole general partner or the
         managing general partner of which is such Person or a Subsidiary of
         such Person or

                                       23

<PAGE>

         (b) the only general partners of which are that Person or one or more
         Subsidiaries of that Person (or any combination thereof).

         "UNRESTRICTED SUBSIDIARY" means (1) any Securitization Subsidiary or
(2) any Subsidiary of the Company that is designated by the Board of Directors
of the Company as an Unrestricted Subsidiary pursuant to a Board Resolution, but
only to the extent that such Subsidiary:

                  (1)      has no Indebtedness other than Non-Recourse Debt;

                  (2)      is not party to any agreement, contract, arrangement
         or understanding with the Company or any Restricted Subsidiary of the
         Company unless the terms of any such agreement, contract, arrangement
         or understanding are no less favorable to the Company or such
         Restricted Subsidiary than those that might be obtained at the time
         from Persons who are not Affiliates of the Company;

                  (3)      is a Person with respect to which neither the Company
         nor any of its Restricted Subsidiaries has any direct or indirect
         obligation (a) to subscribe for additional Equity Interests or (b) to
         maintain or preserve such Person's financial condition or to cause such
         Person to achieve any specified levels of operating results; and

                  (4)      has not guaranteed or otherwise directly or
         indirectly provided credit support for any Indebtedness of the Company
         or any of its Restricted Subsidiaries.

Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary
will be evidenced to the Trustee by filing with the Trustee the Board Resolution
giving effect to such designation and an Officers' Certificate certifying that
such designation complied with the preceding conditions and was permitted by
Section 3.03 hereof. If, at any time, any Unrestricted Subsidiary would fail to
meet the preceding requirements as an Unrestricted Subsidiary, it will
thereafter cease to be an Unrestricted Subsidiary for purposes of the Indenture
and any Indebtedness of such Subsidiary will be deemed to be incurred by a
Restricted Subsidiary of the Company as of such date and, if such Indebtedness
is not permitted to be incurred as of such date under Section 3.04 hereof, the
Company will be in default thereunder. The Board of Directors of the Company may
at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided that such designation will be deemed to be an incurrence of
Indebtedness by a Restricted Subsidiary of the Company of any outstanding
Indebtedness of such Unrestricted Subsidiary and such designation will only be
permitted if (1) such Indebtedness is permitted under Section 3.04 hereof,
calculated on a pro forma basis as if such designation had occurred at the
beginning of the four-quarter reference period; and (2) no Default or Event of
Default would be in existence following such designation.

                                       24

<PAGE>

         "VOTING STOCK" of any Person as of any date means the Capital Stock of
such Person that is at the time entitled to vote in the election of the Board of
Directors of such Person.

         "WEIGHTED AVERAGE LIFE TO MATURITY" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing:

                  (1)      the sum of the products obtained by multiplying (a)
         the amount of each then remaining installment, sinking fund, serial
         maturity or other required payments of principal, including payment at
         final maturity, in respect of the Indebtedness, by (b) the number of
         years (calculated to the nearest one-twelfth) that will elapse between
         such date and the making of such payment; by

                  (2)      the then outstanding principal amount of such
         Indebtedness.

         Section 1.02. Rules of Construction. For all purposes of this Ninth
Supplemental Indenture:

         (a)      all references herein to Articles and Sections, unless
otherwise specified, refer to the corresponding Articles and Sections of this
Ninth Supplemental Indenture;

         (b)      the terms "herein", "hereof', "hereunder" and other words of
similar import refer to this Ninth Supplemental Indenture; and

         (c)      the terms "this Indenture" and "the Indenture" and other words
of similar import refer to the Base Indenture as supplemented by this Ninth
Supplemental Indenture.

                                    ARTICLE 2
                               THE SERIES OF NOTES

         Section 2.01. Title of the Securities. There shall be established
hereby a series of Securities designated as the "85/8% Senior Notes due 2010."

         Section 2.02. Form And Dating. General. The Notes and the Trustee's
certificate of authentication shall be substantially in the form of Exhibit A
hereto. The Notes may have notations, legends or endorsements required by law,
stock exchange rule or usage. Each Note shall be dated the date of its
authentication. The Notes shall be in denominations of US$1,000 and integral
multiples thereof.

         (b)      The terms and provisions contained in the Notes shall
constitute, and are hereby expressly made, a part of this Ninth Supplemental
Indenture, and the Company and the Trustee, by their execution and delivery of
this Ninth
                                       25

<PAGE>

Supplemental Indenture, expressly agree to such terms and provisions and to be
bound thereby. However, to the extent any provision of any Note conflicts with
the express provisions of this Ninth Supplemental Indenture, the provisions of
this Ninth Supplemental Indenture shall govern and be controlling.

         (c)      The Notes shall be issuable as Registered Securities and
Registered Global Securities. The Company hereby designates The Depository Trust
Company as the initial Depositary for the Notes. References to the "Depositary"
herein shall refer to the Depositary designated in the foregoing sentence.

         Section 2.03. Aggregate Principal Amount. The aggregate principal
amount of the Notes shall not initially exceed $800,000,000. The aggregate
principal amount of Notes issuable hereunder may be increased and additional
Notes may be issued up to the maximum aggregate principal amount authorized from
time to time by the Board of Directors of the Company. Such additional Notes (i)
shall have the same terms as the Notes initially issued hereunder, except for
the issue date, issue price, initial Interest Payment Date and the initial
interest accrual date, (ii) shall, together with the Notes initially issued
hereunder, constitute a single series of Securities under the Indenture, (iii)
shall not be issued if at the time of issuance an Event of Default with respect
to the Notes shall have occurred and be continuing and (iv) may only be issued
if permitted by Section 3.04 hereof.

         Section 2.04. Principal Payment Date. The Notes will mature and
principal thereof will be due and payable, together with all accrued and unpaid
interest thereon, on June 1, 2010.

         Section 2.05. Interest And Interest Dates. Interest on the Notes shall
be payable semi-annually on June 1 and December 1 of each year, beginning (in
the case of Notes initially issued hereunder) on December 1, 2003 (each, an
"INTEREST PAYMENT DATE"); provided, however, that if an Interest Payment Date
would otherwise be a day that is not a Business Day, such Interest Payment Date
shall be the next succeeding Business Day, and no additional interest shall be
paid in respect of such intervening period. Interest will be paid to the Holders
of record on the May 15 or November 15 immediately preceding the applicable
Interest Payment Date. The interest rate borne by the Notes will be 85/8% per
annum, until the Notes are paid in full.

         The amount of interest payable on the Notes will be computed on the
basis of a 360-day year of twelve 30-day months.

         Section 2.06. Optional Redemption.

         (a)      At any time and from time to time prior to June 1, 2007, the
Company may, at its option, redeem all or a portion of the Notes at the
Make-Whole Price plus accrued and unpaid interest to the redemption date. The
Company shall determine the Make-Whole Price and deliver to the Trustee an

                                       26

<PAGE>

Officers' Certificate setting forth such price promptly after the determination
thereof and prior to the time the redemption notice is to be given pursuant to
Section 12.2 of the Base Indenture. The Trustee shall have no responsibility for
determining the Make-Whole Price.

         (b)      At any time and from time to time on or after June 1, 2007,
the Company may, at its option, redeem the Notes, in whole or in part, at a
redemption price equal to the percentage of principal amount set forth below
plus accrued and unpaid interest to the redemption date:

<TABLE>
<CAPTION>
TWELVE MONTH PERIOD COMMENCING JUNE 1 IN YEAR                     PERCENTAGE
---------------------------------------------                     ----------
<S>                                                               <C>
2007........................................                        104.313%
2008........................................                        102.156%
2009 and thereafter.........................                        100.000%
</TABLE>

         Any redemption pursuant to this Section 2.06 shall be made, to the
extent applicable, pursuant to the provisions contained in Article Twelve of the
Base Indenture.

         Section 2.07. Redemption with Proceeds of Public Equity Offering. At
any time and from time to time prior to June 1, 2006, the Company may, at its
option, redeem up to 35% of the aggregate principal amount of the Notes with the
net cash proceeds received by Company from any Equity Offering at a redemption
price equal to 108.625% of the principal amount plus accrued and unpaid interest
to the redemption date; provided that

         (a)      in each case the redemption takes place not later than 120
days after the closing of the related Equity Offering, and

         (b)      at least 65% of the aggregate principal amount of Notes
remains outstanding immediately after the occurrence of such redemption
(excluding Notes held by the Company and its Subsidiaries).

         (c)      The Officers' Certificate required to be delivered to the
Trustee by the Company by the fourth paragraph of Section 12.2 of the Base
Indenture shall, in addition to the other matters required to be stated therein,
state that the Company is entitled under this Section 2.07 to redeem the Notes.

         (d)      Any redemption pursuant to this Section 2.07 shall be made, to
the extent applicable, pursuant to the provisions of Article Twelve of the Base
Indenture.

         Section 2.08. Change Of Control Offer. (a) A "CHANGE OF CONTROL OFFER"
means an offer by the Company to purchase Notes as required by Section 3.07
hereof. A Change of Control Offer must be made by written offer (the "OFFER")
sent to the Holders of the Notes. The Company shall notify the Trustee at least
three Business Days (or such shorter period as is acceptable to the

                                       27

<PAGE>

Trustee) prior to sending the offer to such Holders of its obligation to make a
Change of Control Offer, and the offer will be sent by the Company or, at the
Company's request, by the Trustee in the name and at the expense of the Company.

         (b)      The offer must include or state the following as to the terms
 of the Change of Control Offer:

                  (i)      the provision of the Indenture pursuant to which the
         Change of Control Offer is being made;

                  (ii)     the purchase price, including the portion thereof
         representing accrued interest;

                  (iii)    a payment date (the "CHANGE OF CONTROL PAYMENT DATE")
         not less than 30 days or more than 60 days after the date the offer is
         mailed;

                  (iv)     a description of the transaction or transactions
         constituting the Change of Control;

                  (v)      a Holder may tender all or any portion of its Notes,
         subject to the requirement that any portion of a Note tendered must be
         in a multiple of $1,000 principal amount;

                  (vi)     the place or places where Notes are to be surrendered
         for tender pursuant to the Change of Control Offer;

                  (vii)    each Holder electing to tender a Note pursuant to the
         offer will be required to surrender such Note, with the form entitled
         "Option of Holder to Elect Purchase" attached to the Notes completed,
         at the place or places specified in the offer prior to the close of
         business on the Change of Control Payment Date (such Note being, if the
         Company or the Trustee so requires, duly endorsed or accompanied by a
         duly executed written instrument of transfer);

                  (viii)   interest on any Note not tendered will continue to
         accrue;

                  (ix)     on the Change of Control Payment Date the purchase
         price will become due and payable on each Note accepted for purchase,
         and interest on Notes purchased will cease to accrue on and after the
         Change of Control Payment Date;

                  (x)      Holders are entitled to withdraw Notes tendered by
         giving notice, which must be received by the Company or the Trustee not
         later than the close of business on the Change of Control Payment Date,
         setting forth the name of the Holder, the principal amount of the
         tendered Notes, the certificate number of the tendered Notes (unless
         the Notes are

                                       28

<PAGE>

         represented by one or more Registered Global Securities) and a
         statement that the Holder is withdrawing all or a portion of the
         tender;

                  (xi)     the Company will purchase all Notes validly tendered
         pursuant to such Change of Control Offer on the Change of Control
         Payment Date;

                  (xii)    if any Note is purchased in part, new Notes equal in
         principal amount to the unpurchased portion of the Note will be issued;
         and

                  (xiii)   if any Note contains a CUSIP or CINS number, no
         representation is being made as to the correctness of the CUSIP or CINS
         number either as printed on the Notes or as contained in the offer and
         that the Holder should rely only on the other identification numbers
         printed on the Notes.

         (c)      Prior to the Change of Control Payment Date, the Company will
accept tendered Notes for purchase as required by the Change of Control Offer
and deliver to the Trustee all Notes so accepted together with an Officers'
Certificate specifying which Notes have been accepted for purchase. On the
Change of Control Payment Date the purchase price will become due and payable on
each Note accepted for purchase, and interest on Notes purchased will cease to
accrue on and after the Change of Control Payment Date. The Trustee or other
paying agent with respect to the Notes will promptly mail to each Holder of
Notes properly tendered the Change of Control Payment for such Notes, and the
Trustee will promptly return to Holders any Notes not accepted for purchase and
send to Holders new Notes equal in principal amount to any unpurchased portion
of any Notes accepted for purchase in part, provided that each new Note will be
in a principal amount of $1,000 or an integral multiple of $1,000.

         (d)      On the Change of Control Payment Date, the Company will, to
the extent lawful:

                  (i)      accept for payment all Notes or portions of Notes
         properly tendered pursuant to the Change of Control Offer;

                  (ii)     deposit with the Trustee or other paying agent an
         amount equal to the Change of Control Payment in respect of all Notes
         or portions of Notes properly tendered; and

                  (iii)    deliver or cause to be delivered to the Trustee the
         Notes properly accepted together with an Officers' Certificate stating
         the aggregate principal amount of Notes or portions of Notes being
         purchased by the Company.

                                       29

<PAGE>

                  (e)      The Company will comply with Rule 14e-1 under the
Exchange Act and any other securities laws or regulations thereunder to the
extent such laws or regulations are applicable in connection with the repurchase
of the Notes as a result of a Change of Control, and the above procedures will
be deemed modified as necessary to permit such compliance.

         Section 2.09. Defeasance. Section 10.1 of the Base Indenture is hereby
amended with respect to the Notes by adding at the end of subsection (B)
thereof, the following new paragraphs "(f) the Company has delivered to the
Trustee an Officers' Certificate stating that the deposit was not made by the
Company with the intent of preferring the Holders of the Notes over the other
creditors of the Company with the intent of defeating, hindering, delaying or
defrauding creditors of the Company or others." and "(g) no Default or Event of
Default shall have occurred and be continuing on the date of such deposit (other
than a Default or Event of Default resulting from the borrowing of funds to be
applied to such deposit)."

         (b)      Section 10.1 of the Base Indenture is hereby amended with
respect to the Notes by (i) adding on the third line of paragraph (b) of
subsection (C) thereof, the following words after the word Securities: "(other
than a Default or Event of Default resulting from the borrowing of funds to be
applied to such deposit)" and (ii) adding at the end of subsection (C) thereof,
the following new paragraph "(i) the Company has delivered to the Trustee an
Officers' Certificate stating that the deposit was not made by the Company with
the intent of preferring the Holders of the Notes over the other creditors of
the Company with the intent of defeating, hindering, delaying or defrauding
creditors of the Company or others."

         (c)      The following covenants and Events of Default shall be subject
to covenant defeasance under Section 10.1(C) of the Base Indenture in lieu of
Sections 3.6 and 9.1 thereof: 2.08, 3.02 through 3.13, 3.14(a)(4), 3.15 and
4.02(a)(iii), (v) and (vi). All references in Section 10.1(C) to Section 5.1 of
the Base Indenture shall be deemed a reference to Section 4.02(a) hereof and all
references in Section 10.1(C) to Section 5.1(d) or (e) of the Base Indenture
shall be deemed a reference to Section 4.02(a)(vii) or (viii) hereof.

                                    ARTICLE 3
                                    COVENANTS

         Section 3.01. Applicability Of Covenants. Section 3.6 and Section 9.1
of the Base Indenture will not be applicable to the Notes. Instead, the
provisions of Sections 3.02 through 3.15 will apply to the Notes to the extent
stated below.

         Section 3.02. Commission Reports; Financial Statements. (a) Whether or
not required by the Commission, so long as any Notes are outstanding, the

                                       30

<PAGE>

Company will furnish to the Trustee, within 30 days after the time periods
specified in the Commission's rules and regulations:

         (1) all quarterly and annual financial information that would be
    required to be contained in a filing with the Commission on Forms 10-Q and
    10-K if the Company were required to file such reports, including a
    "Management's Discussion and Analysis of Financial Condition and Results of
    Operations", and, with respect to the annual information only, a report on
    the annual financial statements by the Company's certified independent
    accountants; and

        (2) all current reports that would be required to be filed with the
    Commission on Form 8-K if the Company were required to file such reports.

         (b) If the Company has designated any of its Subsidiaries as
    Unrestricted Subsidiaries, then the quarterly and annual financial
    information required by paragraph (a) will include a reasonably detailed
    presentation, either on the face of the financial statements or in the
    footnotes thereto, of the financial condition and results of operations of
    the Company and its Restricted Subsidiaries excluding in all respects the
    Unrestricted Subsidiaries of the Company.

         (c) On request from the Trustee, the Company shall provide the Trustee
   with a sufficient number of copies of all reports and other documents and
   information that the Trustee may be required to deliver to Holders pursuant
   to the Indenture, if any are so required.

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

         Section 3.03. Limitation On Restricted Payments. (a) The Company will
not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly:

        (1) declare or pay any dividend or make any other payment or
    distribution on account of the Company's or any of its Restricted
    Subsidiaries' Equity Interests (including, without limitation, any payment
    in connection with any merger or consolidation involving the Company or any
    of its Restricted Subsidiaries) or to the direct or indirect holders of the
    Company's or any of its Restricted Subsidiaries' Equity Interests in their
    capacity as such (other than dividends or distributions payable in Equity
    Interests (other than Disqualified Stock) of the Company or to the Company
    or a Restricted Subsidiary of the Company);

                                       31

<PAGE>

        (2) purchase, redeem or otherwise acquire or retire for value
    (including, without limitation, in connection with any merger or
    consolidation involving the Company) any Equity Interests of the Company;

        (3) make any payment on or with respect to, or purchase, redeem, defease
    or otherwise acquire or retire for value any Indebtedness that is
    subordinated to the Notes, except a payment of interest or principal at the
    Stated Maturity thereof; or

        (4) make any Restricted Investment (all such payments and other actions
    set forth in these clauses (1) through (4) above being collectively referred
    to as "RESTRICTED PAYMENTS"),

unless, at the time of and after giving effect to such Restricted Payment, no
Default or Event of Default has occurred and is continuing or would occur as a
consequence of such Restricted Payment; and

        (1) The Company would, at the time of such Restricted Payment and after
    giving pro forma effect thereto as if such Restricted Payment had been made
    at the beginning of the applicable four-quarter period, have been permitted
    to incur at least $1.00 of additional Indebtedness pursuant to the Fixed
    Charge Coverage Ratio test set forth in the first paragraph of Section 3.04
    hereof and

        (2) such Restricted Payment, together with the aggregate amount of all
    other Restricted Payments made by the Company and its Restricted
    Subsidiaries after the date hereof (excluding Restricted Payments permitted
    by clauses (2), (3), (4), (6) and (8) of the next succeeding paragraph), is
    less than the sum, without duplication, of:

             (A) 50% of the Consolidated Net Income of the Company for the
        period (taken as one accounting period) from the beginning of the first
        fiscal quarter commencing after the first anniversary of the date hereof
        to the end of the Company's most recently ended fiscal quarter for which
        internal financial statements are available at the time of such
        Restricted Payment (or, if such Consolidated Net Income for such period
        is a deficit, less 100% of such deficit), plus

             (B) 100% of the aggregate net cash proceeds received by the Company
        (including the fair market value of any Permitted Business or assets
        used or useful in a Permitted Business to the extent acquired in
        consideration of Equity Interests of the Company (other than
        Disqualified Stock)) since the date hereof as a contribution to its
        common equity capital or from the issue or sale of Equity Interests of
        the Company (other than Disqualified Stock) or from the issue or sale of
        convertible or exchangeable Disqualified Stock or convertible or
        exchangeable debt securities of the Company that have been converted
        into or exchanged for such Equity Interests (other than

                                       32

<PAGE>

         Equity Interests (or Disqualified Stock or debt securities) sold to a
         Subsidiary of the Company), plus

             (C) to the extent that any Restricted Investment that was made
        after the date hereof is sold for cash or otherwise liquidated or repaid
        for cash, the lesser of (i) the cash return of capital with respect to
        such Restricted Investment, including, without limitation, repayment of
        principal of any Restricted Investment constituting a loan or advance
        (less the cost of disposition, if any) and (ii) the initial amount of
        such Restricted Investment, plus

             (D) to the extent that any Unrestricted Subsidiary of the Company
        is redesignated as a Restricted Subsidiary after the date hereof, the
        lesser of (i) the fair market value of the Company's Investment in such
        Subsidiary as of the date of such redesignation or (ii) such fair market
        value as of the date on which such Subsidiary was originally designated
        as an Unrestricted Subsidiary.

         (b)      Notwithstanding the foregoing, the preceding provisions of
this Section 3.03 shall not prohibit:

        (1) the payment of any dividend within 60 days after the date of
    declaration of the dividend, if at the date of declaration the dividend
    payment would have complied with the provisions of the Indenture;

        (2) the redemption, repurchase, retirement, defeasance or other
    acquisition of any subordinated Indebtedness of the Company or of any Equity
    Interests of the Company in exchange for, or out of the net cash proceeds
    of, the substantially concurrent sale (other than to a Subsidiary of the
    Company) of Equity Interests of the Company (other than Disqualified Stock);
    provided that the amount of any such net cash proceeds that are utilized for
    any such redemption, repurchase, retirement, defeasance or other acquisition
    will be excluded from clause (2)(B) of the preceding paragraph;

        (3) the redemption, repurchase, retirement, defeasance or other
    acquisition of the 9-7/8% Cumulative Convertible Preferred Stock of the
    Company out of the net cash proceeds of the 5.50% Junior Subordinated
    Convertible Debentures issued by the Company on May 28, 2003; provided that
    the amount of any such net cash proceeds that are utilized for any such
    redemption, repurchase, retirement, defeasance or other acquisition will be
    excluded from clause (2)(B) of the preceding paragraph;

        (4) the defeasance, redemption, repurchase or other acquisition of
    subordinated Indebtedness of the Company with the net cash proceeds from an
    incurrence of Permitted Refinancing Indebtedness;

                                       33

<PAGE>

        (5) quarterly dividends paid pro rata on outstanding common stock of the
    Company in an amount of up to $0.02 per share, provided that (A) such per
    share amount shall be adjusted proportionally upon any reclassification,
    split, combination, special distribution of common stock to holders thereof
    or similar event such that (x) the per share amount multiplied by the number
    of such shares outstanding, in each case determined immediately before
    giving effect to such event is equal to (y) the per share amount multiplied
    by the number of such shares outstanding, in each case determined
    immediately after giving effect to such event and (B) in no event shall the
    aggregate quarterly amount payable pursuant to this clause exceed by 20% the
    aggregate quarterly amount that would be payable on all shares of common
    stock outstanding on the date hereof if a quarterly dividend payment of
    $0.02 per share were payable on the date hereof;

        (6) the payment of any distribution or dividend by a Restricted
    Subsidiary of the Company, on a pro rata basis to all holders or on a basis
    more favorable to the Company and its Restricted Subsidiary, to the holders
    of such Restricted Subsidiary's Equity Interests; and

        (7) so long as no Default or Event of Default has occurred and is
    continuing or would be caused thereby, the repurchase, redemption or
    acquisition or retirement for value of any Equity Interests of the Company
    held by any member of the Company's (or any of its Restricted Subsidiaries')
    management pursuant to any management equity subscription agreement, stock
    option agreement or similar agreement; provided that the aggregate price
    paid for all such repurchased, redeemed, acquired or retired Equity
    Interests may not exceed $5.0 million in any twelve-month period and
    provided further that if the amount so paid in any calendar year is less
    than $5.0 million, such shortfall may be used to so repurchase, redeem,
    acquire or retire Equity Interests in either of the next two calendar years
    in addition to the $5.0 million that may otherwise be paid in each such
    calendar year;

        (8) so long as no Default or Event of Default has occurred and is
    continuing or would be caused thereby, any Investment made in exchange for,
    or out of the net cash proceeds of, a substantially concurrent offering of
    Equity Interests of the Company; provided that the amount of any such net
    cash proceeds will be excluded from clause (2)(B) of the preceding
    paragraph; and

        (9) other Restricted Payments in an aggregate amount since the date
    hereof not to exceed $50.0 million.

         (c)      The amount of all Restricted Payments (other than cash) will
be the fair market value on the date of the Restricted Payment of the asset(s)
or securities proposed to be transferred or issued by the Company or such
Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.
The fair market value of any assets or securities that are required to be valued
by this

                                       34

<PAGE>

Section 3.03 will be determined, in the case of amounts greater than $10.0
million but less than $75.0 million, by an officer of the Company and, in the
case of $75.0 million or more, by the Board of Directors of the Company.

         Section 3.04. Limitation On Incurrence Of Indebtedness And Issuance
Of Preferred Stock. (a) The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable,
contingently or otherwise, with respect to (collectively, "INCUR") any
Indebtedness (including Acquired Debt), and the Company will not issue any
Disqualified Stock and will not permit any of its Restricted Subsidiaries to
issue any shares of preferred stock; provided, however, that the Company and its
Restricted Subsidiaries may incur Indebtedness (including Acquired Debt) or the
Company may issue Disqualified Stock, if the Fixed Charge Coverage Ratio for the
Company's most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
additional Indebtedness is incurred or such Disqualified Stock is issued would
have been at least 2.0 to 1, determined on a pro forma basis (including a pro
forma application of the net proceeds therefrom), as if the additional
Indebtedness had been incurred or Disqualified Stock had been issued, as the
case may be, at the beginning of such four-quarter period.

         (b)      Paragraph (a) of this Section 3.04 will not prohibit the
incurrence of any of the following items of Indebtedness (collectively,
"PERMITTED DEBT"):

        (1) the incurrence by the Company or any Restricted Subsidiary of
    Indebtedness and letters of credit under any Credit Facilities to which the
    Company or any Restricted Subsidiary is a party in an aggregate principal
    amount at any one time outstanding under this clause (1) (with letters of
    credit being deemed to have a principal amount equal to the undrawn face
    amount thereof) not to exceed $1.3 billion;

        (2) the incurrence by the Company and its Restricted Subsidiaries of the
    Existing Indebtedness;

        (3) the incurrence by the Company of Indebtedness represented by the
    Notes issued on the date hereof;

        (4) the incurrence by the Company and any of its Restricted Subsidiaries
    of Indebtedness represented by Capital Lease Obligations, mortgage
    financings or purchase money obligations, in each case, incurred for the
    purpose of financing all or any part of the purchase price or cost of
    construction or improvement of property, plant or equipment used in the
    business of the Company or such Restricted Subsidiary, in an aggregate
    principal amount not to exceed $50.0 million at any time outstanding;

                                       35

<PAGE>

        (5) the incurrence by the Company or any of its Restricted Subsidiaries
    of Permitted Refinancing Indebtedness in exchange for, or the net proceeds
    of which are used to refund, refinance or replace Indebtedness (other than
    intercompany Indebtedness), including Permitted Refinancing Indebtedness
    incurred to finance the purchase price of the replacement properties, that
    was permitted to be incurred under paragraph (a) of this Section 3.04 or
    clauses (2), (3), (4) or (5) of this paragraph (b);

        (6) the incurrence by the Company or any of its Restricted Subsidiaries
    of intercompany Indebtedness between or among the Company and any of its
    Restricted Subsidiaries; provided, however, that (a) any subsequent issuance
    or transfer of Equity Interests that results in any such Indebtedness being
    held by a Person other than the Company or a Restricted Subsidiary of the
    Company and (b) any sale or other transfer of any such Indebtedness to a
    Person that is not either the Company or a Restricted Subsidiary of the
    Company, will be deemed, in each case, to constitute an incurrence of such
    Indebtedness by the Company or such Restricted Subsidiary, as the case may
    be, that was not permitted by this clause (6);

        (7) the incurrence by the Company or any of its Subsidiaries of Hedging
    Obligations;

        (8) the Guarantee by the Company of Indebtedness of any of its
    Restricted Subsidiaries that was permitted to be incurred by another
    provision of this Section 3.04;

        (9) Indebtedness in respect of bankers acceptances, letters of credit
    and performance or surety bonds issued for the account of the Company or any
    of its Restricted Subsidiaries in the ordinary course of business in amounts
    and for the purposes customary in the Company's industry, in each case only
    to the extent that such incurrence does not result in the incurrence of any
    obligation to repay any borrowed money;

        (10) Indebtedness arising from any agreement providing for indemnities,
    Guarantees, purchase price adjustments, holdbacks, contingency payment
    obligations based on the performance of the acquired or disposed assets or
    similar obligations (other than Guarantees of Indebtedness) incurred by any
    Person in connection with the acquisition or disposition of assets;

        (11) the incurrence by the Company or any of its Restricted Subsidiaries
     of Acquired Debt if the Fixed Charge Coverage Ratio for the Company's most
     recently ended four full fiscal quarters for which internal financial
     statements are available immediately preceding the date of incurrence of
     Acquired Debt (the "RELEVANT FIXED CHARGE COVERAGE RATIO") determined
     immediately after giving effect to such incurrence and the related
     acquisition (including through a merger, consolidation or otherwise) is
     higher than the Relevant

                                       36

<PAGE>

     Fixed Charge Coverage Ratio determined immediately before giving effect to
     such incurrence and the related acquisition; and

        (12) the incurrence by the Company or any of its Restricted Subsidiaries
    of additional Indebtedness in an aggregate principal amount (or accreted
    value, as applicable) at any time outstanding, including all Permitted
    Refinancing Indebtedness incurred to refund, refinance or replace any
    Indebtedness incurred pursuant to this clause (12), not to exceed $250.0
    million.

         (c)      If any Non-Recourse Debt of an Unrestricted Subsidiary shall
at any time cease to constitute Non-Recourse Debt or such Unrestricted
Subsidiary shall be redesignated a Restricted Subsidiary, such event will be
deemed to constitute an incurrence of Indebtedness by a Restricted Subsidiary.

         (d)      For purposes of determining compliance with this Section 3.04:

        (1) in the event that an item of proposed Indebtedness (including
    Acquired Debt) meets the criteria of more than one of the categories of
    Permitted Debt described in clauses (1) through (12) of paragraph (b) above,
    or is entitled to be incurred pursuant to paragraph (a) of this Section
    3.04, the Company will be permitted to classify (or later classify or
    reclassify in whole or in part in its sole discretion) such item of
    Indebtedness in any manner that complies with this Section 3.04;

        (2) the accrual of interest, the accretion or amortization of original
    issue discount, the payment of interest on any Indebtedness in the form of
    additional Indebtedness with the same terms, and the payment of dividends on
    Disqualified Stock in the form of additional shares of the same class of
    Disqualified Stock will not be deemed to be an incurrence of Indebtedness or
    an issuance of Disqualified Stock for purposes of this Section 3.04;
    provided, in each such case, that the amount thereof is included in the
    computation of Fixed Charges of the Company as accrued; and

        (3) for the purposes of determining compliance with any
     dollar-denominated restriction on the incurrence of Indebtedness
     denominated in a foreign currency, the dollar-equivalent principal amount
     of such Indebtedness incurred pursuant thereto shall be calculated based on
     the relevant currency exchange rate in effect on the date that such
     Indebtedness was incurred.

         Section 3.05. Limitation On Liens. The Company will not, and will not
permit any of its Restricted Subsidiaries to, create, incur, assume or otherwise
cause or suffer to exist or become effective any Lien of any kind securing
Indebtedness, Attributable Debt or trade payables (other than Permitted Liens)
upon any of their property or assets, now owned or hereafter acquired, unless
the Notes and all payments due under the Indenture with respect to the Notes are
secured on an equal and ratable basis with the obligations so secured until such

                                       37
<PAGE>

time as such obligations are no longer secured by a Lien or, in the case of any
obligation so secured that is expressly subordinated to the Notes, by a Lien
prior to any Liens securing any and all obligations thereby secured for so long
as any such obligations shall be so secured.

         Section 3.06 . Limitation On Dividend And Other Payment Restrictions
Affecting Subsidiaries. (a) The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or permit to exist or
become effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to:

        (1) pay dividends or make any other distributions on its Capital Stock
    to the Company or any of its Subsidiaries, or with respect to any other
    interest or participation in, or measured by, its profits, or pay any
    indebtedness owed to the Company or any of its Restricted Subsidiaries;

        (2) make loans or advances to the Company or any of its Restricted
    Subsidiaries; or

        (3) transfer any of its properties or assets to the Company or any of
    its Restricted Subsidiaries.

    (b) Notwithstanding the foregoing, the preceding restrictions will not apply
to encumbrances or restrictions existing under or by reason of:

        (1) agreements governing Existing Indebtedness and the Credit Facilities
    in effect on June 1, 2003 and other customary encumbrances and restrictions
    existing on or after the date hereof that are not more restrictive in any
    material respect, taken as a whole, with respect to such dividend and other
    payment restrictions than those contained in such agreements on June 1, 2003
    (provided that the application of such restrictions and encumbrances to
    additional Restricted Subsidiaries not subject thereto on June 1, 2003 shall
    not be deemed to make such restrictions and encumbrances more restrictive);

        (2) the Indenture and the Notes and other customary encumbrances and
    restrictions existing in indentures and notes after the date hereof that are
    not more restrictive, in any material respect, taken as a whole, with
    respect to such dividend and other payment restrictions than those contained
    in the Indenture;

        (3) applicable law (including without limitation, rules, regulations and
    agreements with regulatory authorities);

        (4) any instrument governing Indebtedness or Capital Stock of a Person
    acquired by the Company or any of its Restricted Subsidiaries as in effect
    at the time of such acquisition (except to the extent such Indebtedness or
    Capital Stock was incurred in connection with or in contemplation of such

                                       38

<PAGE>

    acquisition), which encumbrance or restriction is not applicable to any
    Person, or the properties or assets of any Person, other than the Person, or
    the property or assets of the Person, so acquired; provided that, in the
    case of Indebtedness, such Indebtedness was permitted by the terms of the
    Indenture to be incurred;

        (5) customary non-assignment provisions in leases entered into in the
    ordinary course of business and consistent with past practices;

        (6) Capital Lease Obligations, mortgage financings or purchase money
    obligations for property acquired in the ordinary course of business that
    impose restrictions on that property of the nature described in clause (3)
    of paragraph (a) of this Section 3.06;

        (7) any agreement for the sale or other disposition of a Restricted
    Subsidiary that restricts distributions by that Restricted Subsidiary
    pending its sale or other disposition;

        (8) Permitted Refinancing Indebtedness; provided that the restrictions
    contained in the agreements governing such Permitted Refinancing
    Indebtedness are no more restrictive in any material respect, taken as a
    whole, than those contained in the agreements governing the Indebtedness
    being refinanced;

        (9) Liens securing Indebtedness otherwise permitted to be incurred under
    the provisions of Section 3.05 hereof that limit the right of the debtor to
    dispose of the assets subject to such Liens;

        (10) provisions with respect to the disposition or distribution of
    assets or property in joint venture agreements, asset sale agreements, stock
    sale agreements and other similar agreements; provided that such
    restrictions apply only to the assets or property subject to such joint
    venture or similar agreement or to the assets or property being sold, as the
    case may be; and

        (11) restrictions on cash or other deposits or net worth imposed by
    customers under contracts entered into in the ordinary course of business.

         Section 3.07.  Repurchase Of Notes Upon A Change Of Control. (a)
Subject to paragraph (b) of this Section, not later than 30 days following a
Change of Control, the Company will make a Change of Control Offer to purchase
all outstanding Notes at a purchase price (the "CHANGE OF CONTROL PAYMENT")
equal to 101% of the principal amount plus accrued and unpaid interest to the
date of purchase; provided that the Company will not be required to make a
Change of Control Offer upon a Change of Control if a third party makes the
Change of Control Offer in the manner, at the times and otherwise in compliance
with the requirements set forth herein applicable to a Change of Control Offer
made by the

                                       39

<PAGE>

Company and purchases all Notes properly tendered and not withdrawn under the
Change of Control Offer.

         (b)      Prior to complying with any of the provisions of this Section,
but in any event within 30 days following a Change of Control, if the Company is
subject to any agreement evidencing Indebtedness (or commitments to extend
Indebtedness) that prohibits prepayment or repurchase of the Notes pursuant to a
Change of Control Offer, the Company will either repay all such outstanding
Indebtedness of the Company (and terminate all commitments to extend such
Indebtedness), or obtain the requisite consents, if any, under all agreements
governing such Indebtedness or commitments to permit the repurchase of Notes
required by paragraph (a) of this Section 3.07. The Company shall first comply
with this paragraph (b) before it shall be required to make a Change of Control
Offer or to repurchase Notes pursuant to paragraph (a). The Company's failure to
comply with paragraph (b) may (with notice and lapse of time) constitute an
Event of Default under Section 4.02 (a)(iv) but shall not constitute an Event of
Default under Section 4.02(a)(iii).

         (c)      The Company will publicly announce the results of the Change
of Control Offer on or as soon as practicable after the Change of Control
Payment Date.

         Section 3.08.  Limit On Asset Sales. (a) The Company will not, and
will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale
unless:

        (1) the Company (or the Restricted Subsidiary, as the case may be)
    receives consideration at the time of the Asset Sale at least equal to the
    fair market value of the assets or Equity Interests issued or sold or
    otherwise disposed of;

        (2) for any agreement to make an Asset Sale that is entered into after
    the date hereof, the fair market value is determined by (a) an executive
    officer of the Company if the value is more than $10 million but less than
    $75 million or (b) the Company's Board of Directors if the value is $75
    million or more, as evidenced by a Board Resolution; and

        (3) at least 75% of the consideration received in the Asset Sale by the
    Company or such Restricted Subsidiary is in the form of cash or Cash
    Equivalents. For purposes of this provision, each of the following will be
    deemed to be cash:

             (a) any liabilities, as shown on the Company's or such Restricted
        Subsidiary's most recent balance sheet, of the Company or any Restricted
        Subsidiary (other than contingent liabilities and liabilities that are
        by their terms subordinated to the Notes) that are assumed by the
        transferee of any such assets pursuant to a customary novation agreement
        that releases the Company or such Subsidiary from further liability;

                                       40

<PAGE>

             (b) any securities, notes or other obligations received by the
        Company or any such Restricted Subsidiary from such transferee that are
        contemporaneously, subject to ordinary settlement periods, converted by
        the Company or such Restricted Subsidiary into cash, to the extent of
        the cash received in that conversion; and

             (c) property or assets received as consideration for such Asset
        Sale that would otherwise constitute a permitted application of Net
        Proceeds (or other cash in such amount) under clauses (2), (3) or (4)
        under paragraph (b) of this Section 3.08.

    (b) Within 365 days after the receipt of any Net Proceeds from an Asset
Sale, the Company or any of its Restricted Subsidiaries may apply an amount of
cash equal to the amount of such Net Proceeds at its option:

        (1) to repay or prepay senior Indebtedness of the Company or any
    Restricted Subsidiary;

        (2) to acquire all or substantially all of the assets of, or a majority
    of the Voting Stock of, another Permitted Business;

        (3) to make a capital expenditure; or

        (4) to acquire other long-term assets that are used or useful in a
    Permitted Business.

    (c)  Subject to paragraph (e) of this Section 3.08, to the extent that the
Company and its Restricted Subsidiaries do not apply an amount of cash equal to
the amount of such Net Proceeds of any Asset Sale during such period as provided
in paragraph (b) of this Section 3.08, the amount not so applied (excluding Net
Proceeds of any Asset Sale to the extent of the amount of acquisitions or
capital expenditures described under clauses (2), (3) or (4) paragraph (b) of
this Section 3.08 made during the 365 days preceding the receipt of such Net
Proceeds (other than any portion of such amount that was funded with Net
Proceeds of any other Asset Sale or that has been allocated to exclude Net
Proceeds of any other Asset Sales under this Section 3.08)) will constitute
"EXCESS PROCEEDS." When the aggregate amount of Excess Proceeds exceeds $20.0
million, the Company will make an Asset Sale Offer to all Holders of Notes and
all holders of other Indebtedness that is pari passu with the Notes containing
provisions similar to those set forth in this Section 3.08 with respect to
offers to purchase or redeem with the proceeds of sales of assets to purchase
the maximum principal amount of Notes and such other pari passu Indebtedness
that may be purchased out of the Excess Proceeds. The offer price in any Asset
Sale Offer will be equal to 100% of the principal amount plus accrued and unpaid
interest to the date of purchase, and will be payable in cash. If any Excess
Proceeds remain after consummation of an Asset Sale Offer, the Company may use
those Excess

                                       41

<PAGE>

Proceeds for any purpose not otherwise prohibited by the Indenture. If the
aggregate principal amount of Notes and other pari passu Indebtedness tendered
into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Excess
Proceeds will be allocated by the Company to Notes and such other pari passu
Indebtedness on a pro rata basis (based upon the respective principal amounts of
the Notes and such other pari passu Indebtedness tendered into such Asset Sale
Offer) and the portion of each Note to be purchased will thereafter be
determined by the Trustee on a pro rata basis among the Holders of such Notes
with appropriate adjustments such that the Notes may only be purchased in
integral multiples of $1,000. Upon completion of each Asset Sale Offer, the
amount of Excess Proceeds will be reset at zero.

    (d)  The Company will comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with each
repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the
provisions of any securities laws or regulations conflict with the provisions of
this Section 3.08, the Company will comply with the applicable securities laws
and regulations and will not be deemed to have breached its obligations
hereunder by virtue of such conflict.

    (e)  Prior to making any Asset Sale Offer, but in any event within 30 days
following the date on which such Asset Sale Offer would otherwise be required,
if the Company is subject to any agreement evidencing Indebtedness (or
commitments to extend Indebtedness) that prohibits prepayment or repurchase of
the Notes pursuant to an Asset Sale Offer, the Company will either repay all
such outstanding Indebtedness of the Company (and terminate all commitments to
extend such Indebtedness) or obtain the requisite consents, if any, under all
agreements governing such Indebtedness or commitments to permit the repurchase
of Notes required by this Section 3.08. The Company shall first comply with this
paragraph (e) before it shall be required to make an Asset Sale Offer or to
repurchase Notes pursuant to this Section 3.08. The Company's failure to comply
with this paragraph (e) may (with notice and lapse of time) constitute an Event
of Default under Section 4.02(a)(iv) but shall not constitute an Event of
Default under Section 4.02(a)(iii).

    (f)  In the event that, pursuant to this Section 3.08, the Company is
required to commence an Asset Sale Offer, it shall follow the procedures
specified below.

         The Asset Sale Offer shall be made to all Holders of Notes and to all
holders of other Indebtedness that is pari passu with the Notes to the extent
set forth above in this Section 3.08. The Asset Sale Offer will remain open for
a period of at least 20 Business Days following its commencement and not more
than 30 Business Days, except to the extent that a longer period is required by
applicable law (the "OFFER PERIOD"). No later than three Business Days after the
termination of the Offer Period (the "PURCHASE Date"), the Company shall apply

                                       42

<PAGE>

all Excess Proceeds (the "OFFER AMOUNT") to the purchase of Notes and such other
pari passu Indebtedness (on a pro rata basis, if applicable, as set forth above
in this Section 3.08) or, if less than the Offer Amount has been tendered, all
Notes and other Indebtedness tendered in response to the Asset Sale Offer.

         Upon the commencement of an Asset Sale Offer, the Company will send, by
first class mail, a notice to the Trustee and each of the Holders of the Notes.
The notice will contain all instructions and materials necessary to enable such
Holders to tender Notes pursuant to the Asset Sale Offer. The notice, which will
govern the terms of the Asset Sale Offer, will state:

                  (1)      that the Asset Sale Offer is being made pursuant to
         this Section 3.08 and the length of time the Asset Sale Offer will
         remain open;

                  (2)      the Offer Amount, the purchase price and the Purchase
         Date;

                  (3)      that any Note not tendered or accepted for payment
         will continue to accrue interest;

                  (4)      that, unless the Company defaults in making such
         payment, any Note accepted for payment pursuant to the Asset Sale Offer
         will cease to accrue interest after the Purchase Date;

                  (5)      that Holders electing to have a Note purchased
         pursuant to an Asset Sale Offer may elect to have Notes purchased in
         integral multiples of $1,000 only;

                  (6)      that Holders electing to have a Note purchased
         pursuant to any Asset Sale Offer will be required to surrender the
         Note, with the form entitled "Option of Holder to Elect Purchase"
         attached to the Note completed, or transfer its interest in such Note
         by book-entry transfer, to the Company, a depositary, if appointed by
         the Company, or a paying agent at the address specified in the notice
         at least three Business Days before the Purchase Date;

                  (7)      that Holders will be entitled to withdraw their
         election if the Company, the depositary or the applicable paying agent,
         as the case may be, receives, not later than the expiration of the
         Offer Period, a telegram, telex, facsimile transmission or letter
         setting forth the name of the Holder, the principal amount of the Note
         the Holder delivered for purchase and a statement that such Holder is
         withdrawing his election to have such Note purchased;

                  (8)      that, if the aggregate principal amount of Notes and
         other pari passu Indebtedness surrendered by Holders exceeds the Offer
         Amount, the Company will select the Notes and other pari passu

                                       43

<PAGE>

         Indebtedness to be purchased on a pro rata basis based on the principal
         amount of Notes and such other pari passu Indebtedness surrendered
         (with such adjustments as may be deemed appropriate so that only Notes
         in denominations of $1,000, or integral multiples thereof, will be
         purchased); and

                  (9)      that Holders whose Notes were purchased only in part
         will be issued new Notes equal in principal amount to the unpurchased
         portion of the Notes surrendered (or transferred by book-entry
         transfer).

On or before the Purchase Date, the Company shall, to the extent lawful, accept
for payment, on a pro rata basis to the extent necessary, the Offer Amount of
Notes or portions thereof tendered pursuant to the Asset Sale Offer, or if less
than the Offer Amount has been tendered, all Notes tendered, and shall deliver
to the Trustee an Officers' Certificate stating that such Notes or portions
thereof were accepted for payment by the Company in accordance with the terms of
this Section 3.08. The Company, the depositary or the applicable paying agent,
as the case may be, shall promptly (but in any case not later than five Business
Days after the Purchase Date) mail or deliver to each tendering Holder an amount
equal to the purchase price of the Notes tendered by such Holder and accepted by
the Company for purchase, and the Company shall promptly issue a new Note, and
the Trustee, upon written request from the Company will authenticate and mail or
deliver such new Note to such Holder, in a principal amount equal to any
unpurchased portion of the Note surrendered. Any Note not so accepted shall be
promptly mailed or delivered by the Company to the Holder thereof. The Company
will publicly announce the results of the Asset Sale Offer on the Purchase Date.

         Section 3.09.  Limitation On Transactions With Affiliates. (a) The
Company will not, and will not permit any of its Restricted Subsidiaries to,
make any payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into
or make or amend any transaction, contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate (each, an
"AFFILIATE TRANSACTION"), unless:

        (1) the Affiliate Transaction is on terms that are no less favorable to
    the Company or the relevant Restricted Subsidiary than those that would have
    been obtained in a comparable transaction by the Company or such Restricted
    Subsidiary with an unrelated Person; and

        (2) the Company delivers to the Trustee:

             (a) with respect to any Affiliate Transaction or series of related
        Affiliate Transactions involving aggregate consideration in excess of
        $50 million, a resolution of the Company's Board of Directors set forth
        in an

                                       44

<PAGE>

         Officers' Certificate certifying that such Affiliate Transaction
         complies with this Section 3.09 and that such Affiliate Transaction has
         been approved by a majority of the disinterested members of such Board
         of Directors; and

             (b) with respect to any Affiliate Transaction or series of related
        Affiliate Transactions involving aggregate consideration in excess of
        $75 million, an opinion as to the fairness to the Company of such
        Affiliate Transaction from a financial point of view issued by an
        accounting, appraisal or investment banking firm of national standing.

    (b) The following items will not be deemed to be Affiliate Transactions and,
therefore, will not be subject to the provisions of paragraph (a):

        (1) any employment agreement on customary terms entered into by the
    Company or any of its Restricted Subsidiaries in the ordinary course of
    business of the Company or such Restricted Subsidiary;

        (2) transactions between or among the Company and/or its Restricted
    Subsidiaries;

        (3) transactions with a Person that is an Affiliate of the Company
    solely because the Company owns an Equity Interest in, or controls, such
    Person;

        (4) payment of reasonable directors fees and provision to directors,
    officers and employees of customary indemnities and customary benefits
    pursuant to employee benefit plans and similar arrangements;

        (5) sales of Equity Interests (other than Disqualified Stock) to
    Affiliates of the Company;

        (6) (A) corporate sharing agreements among the Company and its
    subsidiaries with respect to tax sharing and general overhead and other
    administrative matters and (B) any other intercompany arrangements disclosed
    or described in the Company's report on Form 10-K for the fiscal year ended
    December 31, 2002 (including the exhibits thereto) or the prospectus
    relating to the offering of the Notes, all as in effect on the date hereof,
    and any amendment or replacement of any of the foregoing so long as such
    amendment or replacement agreement is not less advantageous to the Company
    in any material respect than the agreement so amended or replaced, as such
    agreement was in effect on the date hereof;

        (7) transactions entered into as part of a Permitted Receivables
    Financing; and

        (8) Restricted Payments that are permitted by the provisions of Section
     3.03 hereof.

                                       45

<PAGE>

         Section 3.10. Designation Of Restricted And Unrestricted Subsidiaries.
The Board of Directors of the Company may designate any Restricted Subsidiary to
be an Unrestricted Subsidiary if that designation would not cause a Default;
provided that in no event will the material businesses currently operated by
Williams Production Holdings LLC or Williams Gas Pipeline Company LLC be
transferred to or held by an Unrestricted Subsidiary. If a Restricted Subsidiary
is designated as an Unrestricted Subsidiary, the aggregate fair market value of
all outstanding Investments owned by the Company and its Restricted Subsidiaries
in the Subsidiary properly designated will be deemed to be an Investment made as
of the time of the designation and will reduce the amount available for
Restricted Payments under any applicable provision of Section 3.03 or Permitted
Investments, as determined by the Company. That designation will only be
permitted if the Investment would be permitted at that time and if the
Restricted Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary. The Board of Directors of the Company may redesignate any
Unrestricted Subsidiary to be a Restricted Subsidiary if the redesignation would
not cause a Default.

         Section 3.11.  Limitation On Sale And Leaseback Transactions. The
Company will not, and will not permit any of its Restricted Subsidiaries to,
enter into any Sale and Leaseback Transaction; provided that the Company or any
of its Restricted Subsidiaries may enter into a Sale and Leaseback Transaction
if:

        (1) the Company could have incurred Indebtedness in an amount equal to
    the Attributable Debt relating to such Sale and Leaseback Transaction under
    the Fixed Charge Coverage Ratio test in Section 3.04(a) hereof;

        (2) immediately after giving effect to such Sale and Leaseback
    Transaction, the aggregate outstanding Attributable Debt with respect to all
    Sale and Leaseback Transactions by the Company and its Restricted
    Subsidiaries does not exceed 10% of the Consolidated Net Tangible Assets of
    the Company; and

        (3) the gross cash proceeds of such Sale and Leaseback Transaction are
    at least equal to the fair market value, as determined in good faith by the
    Board of Directors and set forth in an Officers' Certificate delivered to
    the Trustee, of the property that is the subject of that Sale and Leaseback
    Transaction;

provided, however, that the foregoing clauses (1) and (2) shall no longer be
applicable after any Investment Grade Date.

         Section 3.12.  Business Activities. The Company will not, and will not
permit any Restricted Subsidiary to, engage in any business other than Permitted
Businesses, except to such extent as would not be material to the Company and
its Subsidiaries taken as a whole.

         Section 3.13.  Payments For Consent. The Company will not, and will
not permit any of its Subsidiaries to, directly or indirectly, pay or cause to
be paid any

                                       46

<PAGE>

consideration to or for the benefit of any Holder of Notes for or as an
inducement to any consent, waiver or amendment of any of the terms or provisions
of the Indenture or the Notes unless such consideration is offered to be paid
and is paid to all Holders of the Notes that consent, waive or agree to amend in
the time frame set forth in the solicitation documents relating to such consent,
waiver or agreement.

         Section 3.14.  Limitation On Mergers, Consolidations And Sales Of
Assets. (a) The Company may not, directly or indirectly: (1) consolidate or
merge with or into another Person (whether or not the Company is the surviving
Person); or (2) sell, assign, transfer, convey or otherwise dispose of all or
substantially all of the properties or assets of the Company and its Restricted
Subsidiaries taken as a whole, in one or more related transactions, to another
Person unless:

        (1) either: (A) The Company is the surviving Person; or (B) the Person
    formed by or surviving any such consolidation or merger (if other than the
    Company) or to which such sale, assignment, transfer, conveyance or other
    disposition has been made is a Person organized or existing under the laws
    of the United States, any state of the United States or the District of
    Columbia;

        (2) the Person formed by or surviving any such consolidation or merger
    (if other than the Company) or the Person to which such sale, assignment,
    transfer, conveyance or other disposition has been made expressly assumes by
    supplemental indenture in form satisfactory to the Trustee all the
    obligations of the Company under the Notes and the Indenture and delivers to
    the Trustee an Opinion of Counsel to the effect that the supplemental
    indenture has been duly authorized, executed and delivered by such Person
    and constitutes a valid and binding obligation of such Person, enforceable
    against such Person in accordance with its terms (subject to customary
    exceptions);

        (3) immediately after such transaction no Default or Event of Default
    exists; and

        (4) the Company or the Person formed by or surviving any such
    consolidation or merger (if other than the Company), or to which such sale,
    assignment, transfer, conveyance or other disposition has been made will, on
    the date of such transaction after giving pro forma effect thereto and any
    related financing transactions as if the same had occurred at the beginning
    of the applicable four-quarter period, be permitted to incur at least $1.00
    of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test
    set forth in paragraph (a) of Section 3.04 hereof, provided, however, that
    this clause (4) shall no longer be applicable from and after any Investment
    Grade Date.

                                       47

<PAGE>

         (b) Notwithstanding the foregoing, the Company may not, directly or
indirectly, lease all or substantially all of its properties or assets, in one
or more related transactions, to any other Person.

         (c) Clause (4) of paragraph (a) above will not apply to a sale,
assignment, transfer, conveyance or other disposition of assets between or among
the Company and any of its Restricted Subsidiaries.

         Section 3.15.  Covenant Termination. From and after the first date
after the date hereof on which the Notes have an Investment Grade Rating from
both Rating Agencies and no Default or Event of Default has occurred and is
continuing with respect to the Notes (the "INVESTMENT GRADE DATE"), the Company
and its Restricted Subsidiaries will no longer be subject to Sections 3.03,
3.04, 3.06, 3.08, 3.09 and 3.12 hereof. The Company shall give the Trustee
prompt notice in an Officers' Certificate of the occurrence of the Investment
Grade Date.

                                   ARTICLE 4
                                EVENTS OF DEFAULT

         Section 4.01.  Applicability Of Events Of Default. Sections 5.1 and
5.10 of the Base Indenture will not be applicable to the Notes. Instead, the
provisions of Section 4.02 to 4.04 will apply to extent specified therein. Any
reference in the Base Indenture to Section 5.1 or 5.10 thereof shall be deemed
for purposes of the Notes to be a reference to Section 4.02, 4.03 or 4.04, as
applicable, of this Ninth Supplemental Indenture.

         Section 4.02.  Events Of Default Defined. (a) Each of the following
shall be an Event of Default with respect to the Notes.

                  (i)      default for 30 days in the payment when due of
    interest on the Notes;

                  (ii)     default in payment when due of the principal of, or
    premium, if any, on the Notes;

                  (iii)    failure by the Company to purchase Notes tendered
    pursuant to an offer described under Sections 3.07 or 3.08 hereof in
    accordance with the terms thereof, or failure of the Company to comply with
    the provisions of Section 3.14 hereof;

                  (iv)     failure by the Company or any of its Restricted
    Subsidiaries for 60 days after notice, from the Trustee or the Holders of at
    least 25% of the

                                       48

<PAGE>

    outstanding principal amount of the Notes, to comply with any of the other
    agreements in the Indenture;

                  (v)      default under any mortgage, indenture or instrument
    under which there may be issued or by which there may be secured or
    evidenced any Indebtedness for money borrowed by the Company or any of its
    Restricted Subsidiaries (or the payment of which is Guaranteed by the
    Company or any of its Restricted Subsidiaries) whether such Indebtedness or
    Guarantee now exists, or is created after the date hereof, if that default:

                           (A)      is caused by a failure of the Company or
                  any Subsidiary of the Company to pay principal of, or interest
                  or premium, if any, on such Indebtedness prior to the
                  expiration of the grace period provided in such Indebtedness
                  on the date of such default (a "PAYMENT DEFAULT"); or

                           (B)      results in the acceleration of such
                  Indebtedness prior to its express maturity,

    and, in each case, the principal amount of any such Indebtedness, together
    with the principal amount of any other such Indebtedness under which there
    has been a Payment Default or the maturity of which has been so accelerated,
    aggregates $50 million or more;

                  (vi)  failure by the Company or any of its Subsidiaries to pay
    final judgments aggregating in excess of $50 million, which judgments are
    not paid, discharged or stayed for a period of 60 days;

                  (vii) the entry by a court having jurisdiction in the premises
    of (A) a decree or order for relief in respect of the Company or any of its
    Significant Subsidiaries (or any group of Subsidiaries that, taken together,
    would constitute a Significant Subsidiary) in an involuntary case or
    proceeding under any applicable Federal or State bankruptcy, insolvency,
    reorganization or other similar law or (B) a decree or order adjudging the
    Company or any of its Significant Subsidiaries (or any group of Subsidiaries
    that, taken together, would constitute a Significant Subsidiary) a bankrupt
    or insolvent, or approving as properly filed a petition seeking
    reorganization, arrangement, adjustment or composition of or in respect of
    the Company or any of its Significant Subsidiaries (or any group of
    Subsidiaries that, taken together, would constitute a Significant
    Subsidiary) under any applicable Federal or State law, or appointing a
    custodian, receiver, liquidator, assignee, trustee, sequestrator or other
    similar official of the Company or any of its Significant Subsidiaries (or
    any group of Subsidiaries that, taken together, would constitute a
    Significant Subsidiary) or of any substantial part of the property of the
    Company or any of its Significant Subsidiaries, or ordering the winding up
    or liquidation of the affairs of the Company or any of its Significant

                                       49

<PAGE>

    Subsidiaries (or any group of Subsidiaries that, taken together, would
    constitute a Significant Subsidiary), and the continuance of any such decree
    or order for relief or any such other decree or order unstayed and in effect
    for a period of 90 consecutive days; or

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

                  (b) The Trustee shall not be deemed to have knowledge of a
    Default or Event of Default or of the identity of a Significant Subsidiary
    (or any group of Subsidiaries that, taken together, would constitute a
    Significant Subsidiary) unless a Responsible Officer assigned to the
    Corporate Trust Office of the Trustee has actual knowledge of such Default
    or Event of Default or of the identity of such Significant Subsidiary or the
    Trustee receives written notice at the Corporate Trust Office of the Trustee
    of such Default or Event of Default or of the identity of such Significant
    Subsidiary with specific reference to such Default or Event of Default or
    Significant Subsidiary and the Notes and this Indenture.

                  (c) When a Default is cured, or when an Event of Default is
    deemed cured pursuant to Section 4.04 hereof, such Default, or Event of
    Default, as the case may be, ceases.

                                       50

<PAGE>

                  (d) A Default under clause (iv) of this Section 4.02 will not
    be an Event of Default until the Trustee or the Holders of at least 25% in
    aggregate principal amount of the Notes then Outstanding notify the Company
    of the Default and the Company does not cure such Default within the time
    specified after receipt of such notice. Such notice must specify the Default
    and state that it is a "Notice of Default". Any such notice given by Holders
    shall also be given to the Trustee.

         Section 4.03.  Acceleration. If an Event of Default (other than an
Event of Default specified in clause (vii) or (viii) of Section 4.02(a) hereof
with respect to the Company) occurs and is continuing, the Trustee by notice to
the Company, or the Holders of at least 25% in principal amount of the then
Outstanding Notes by notice to the Company and the Trustee, may declare the
principal of and premium, if any, and accrued and unpaid interest, if any, on
all then Outstanding Notes to be due and payable immediately. Upon any such
declaration, the principal of, premium, if any, and accrued and unpaid interest,
if any, on all then Outstanding Notes shall be due and payable immediately. If
an Event of Default specified in clause (vii) or (viii) of Section 4.02(a)
occurs with respect to the Company, the principal of and premium, if any, and
accrued and unpaid interest, if any, on all Notes then Outstanding shall ipso
facto become and be immediately due and payable without any declaration, notice
or other act on the part of the Trustee or any Holder.

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

                  (i)      all existing Events of Default, other than the
         nonpayment of the principal of, premium, if any, and interest on the
         Notes that have become due solely by the declaration of acceleration,
         have been cured or waived, and

                  (ii)     the rescission would not conflict with any judgment
         or decree of a court of competent jurisdiction.

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

    If the maturity of the Notes is accelerated pursuant to this Section 4.03,
100% of the principal amount thereof shall become due and payable plus premium,
if any, and accrued interest, if any, to the date of payment.

    In the case of any Event of Default occurring by reason of any willful
action or inaction taken or not taken by or on behalf of the Company with the
intention of

                                       51

<PAGE>

avoiding payment of the premium (including, in the case of any such Event of
Default prior to June 1, 2007, payment of the Make-Whole Price) that the Company
would have had to pay if the Company then had elected to redeem the Notes
pursuant to Section 2.06 hereof, an equivalent premium (or, in the case of any
such Event of Default prior to June 1, 2007, the relevant Make-Whole Amount that
would apply at such time if the Notes were optionally redeemed at the Make-Whole
Price) will also become and be immediately due and payable to the extent
permitted by law upon the acceleration of the Notes.

         Section 4.04.  Waiver Of Existing Defaults. Subject to Sections 5.7
and 8.2 of the Base Indenture, the Holders of a majority in aggregate principal
amount of the Outstanding Notes by notice to the Trustee may waive an existing
Default or Event of Default and its consequences (including waivers obtained in
connection with a purchase of, or tender offer or exchange offer for, the Notes
or a solicitation of consents in respect of the Notes), except (1) a continuing
Default or Event of Default in the payment of interest on, or the principal of,
the Notes or (2) a continuing default in respect of a provision that under
Section 8.2 of the Base Indenture cannot be amended without the consent of each
Holder affected. Upon any such waiver, such Default shall cease to exist, and
any Event of Default arising therefrom shall be deemed to have been cured for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereon.

         Section 4.05.  Conflict with Base Indenture. Notwithstanding the
foregoing, if any notice, direction, waiver, rescission or cancellation is given
with respect to a Default or Event of Default that, under the terms of the Base
Indenture, requires action by holders of a percentage of the outstanding
principal amount of the Notes and one or more other series of Securities issued
under the Base Indenture, voting together or otherwise as a single class, then
such notice, direction, waiver, rescission or cancellation shall be effective
only if effected with the requisite percentage of the outstanding principal
amount of the Notes and any other such Securities, voting together or otherwise
as a single class.

                                    ARTICLE 5
                               EXECUTION OF NOTES

         Section 5.01.  Execution of Notes. The Notes shall be executed as
follows:

         Notwithstanding Section 2.5 of the Base Indenture, the Notes shall be
signed on behalf of the Company by its Chairman of the Board, its President, one
of its Vice Presidents or its Treasurer, and its corporate seal may, but need
not, be impressed, affixed, imprinted or otherwise reproduced thereon, and may,
but need not, be attested. Such signatures may be the manual or facsimile
signatures of the present or any future such officers. If any Note is executed
under the Company's corporate seal, such seal may be in the form of a facsimile
thereof. Typographical

                                       52

<PAGE>

and other minor errors or defects in any such reproduction of the seal or any
such signature shall not affect the validity or enforceability of any Note that
has been duly authenticated and delivered by the Trustee.

         In case any officer of the Company who shall have signed any of the
Notes shall cease to be such officer before the Note so signed shall be
authenticated and delivered by the Trustee or disposed of by the Company, such
Note nevertheless may be authenticated and delivered or disposed of as though
the person who signed such Note had not ceased to be such officer of the
Company; and any Note may be signed on behalf of the Company by such persons as,
at the actual date of the execution of such Note, shall be the proper officers
of the Company, although at the date of the execution and delivery of this Ninth
Supplemental Indenture any such person was not such an officer.

                                    ARTICLE 6
                            MISCELLANEOUS PROVISIONS

         Section 6.01.  Ratification. The Indenture, as supplemented and
amended by this Ninth Supplemental Indenture, is in all respects hereby adopted,
ratified and confirmed.

         Section 6.02.  Counterparts. This Ninth Supplemental Indenture may be
executed in any number of counterparts, each of which when so executed shall be
deemed an original; and all such counterparts shall together constitute but one
and the same instrument.

         Section 6.03.  Governing Law. THIS NINTH SUPPLEMENTAL INDENTURE AND
EACH NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO THE CHOICE OF LAW PRINCIPLES THEREOF.

         Section 6.04.  No Recitals, etc. The recitals contained herein shall
be taken as the statements of the Company, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Ninth Supplemental Indenture.

         Section 6.05.  Paying Agent. The Trustee is hereby appointed paying
agent for the Notes.

         Section 6.06.  Liability Of Incorporators, Stockholders, etc. Section
11.1 of the Base Indenture will not be applicable to the Notes. Instead, the
following provisions will apply: No director, officer, employee, incorporator or
stockholder of the Company or any Subsidiary, as such, will have any liability
for any obligations of the Company under the Notes or the Indenture, or for any
claim based on, in respect of, or by reason of, such obligations or their
creation. Each

                                       53

<PAGE>

Holder of the Notes by accepting a Note will be deemed to have waived and
released all such liability. Such waiver and release are part of the
consideration for issuance of the Notes.

                                       54

<PAGE>

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

                                                 THE WILLIAMS COMPANIES, INC.,

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

                                                 JPMORGAN CHASE BANK, as Trustee

                                                 By:   /s/ J Adamis
                                                      --------------------------
                                                       Name:   J Adamis
                                                       Title:  Vice President

<PAGE>

                                                                       EXHIBIT A

         [Unless this certificate is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to the Company
or its agent for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or such other name as
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

         [Unless and until it is exchanged in whole or in part for Securities in
definitive registered form, this Security may not be transferred except as a
whole by the Depositary to the nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or by the
Depositary or any such nominee to a successor Depositary or a nominee of such
successor Depositary.]

No. __

                                                     CUSIP: 969457 BQ2
                                                     $_____________

                          THE WILLIAMS COMPANIES, INC.

                           8 5/8% Senior Note due 2010

         The Williams Companies, Inc., a corporation duly organized and existing
under the laws of the State of Delaware (herein called the "Company"), for value
received, hereby promises to pay to _________ or registered assigns, the
principal sum of ___________ Dollars ($__________) on June 1, 2010, at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, in such coin or currency of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts, and
to pay interest, semiannually on June 1 and December 1 of each year, commencing
December 1, 2003, on said principal sum at said office or agency, in like coin
or currency, at the rate per annum specified in the title of this Note, from the
June 1 or December 1, as the case may be, next preceding the date of this Note
to which interest has been paid or duly provided for, unless the date hereof is
a date to which interest has been paid or duly provided for, in which case from
the date of this Note, or unless no interest has been paid on this Note or duly
provided for, in which case from June 10, 2003, until payment of said principal
sum has been made or duly provided for; provided, that payment of interest may
be made at the option of the Company by check mailed to the address of the
person entitled thereto as such address shall appear on the Security register.
Notwithstanding the foregoing, if the date hereof is after May 15 or November
15, as the case may be, and before the following June 1 or December 1, this Note
shall bear interest from such June 1 or December 1; provided, that if the
Company shall default in the payment of interest due on such June 1 or December
1, then this Note shall bear interest from the next preceding June 1 or December
1, to which interest has been paid or duly provided for or, if no interest has
been paid on this Note or duly provided for, from June 10, 2003. The interest so
payable on any June 1 or December 1, will, subject to certain exceptions
provided in the Indenture referred to on the reverse hereof, be paid to the
person in whose name this Note (or one or more predecessor Notes) is registered
at the close of business on May 15 or November 15 (whether or not a Business
Day), as the case may be, next preceding such June 1 or

                                      A-1

<PAGE>

December 1. Reference is made to the further provisions of this Note set
forth on the reverse hereof. Such further provisions shall for all purposes have
the same effect as though fully set forth at this place. This Note shall not be
valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been executed by the Trustee under the
Indenture referred to on the reverse hereof by manual signature.

                                      A-2

<PAGE>

         IN WITNESS WHEREOF, The Williams Companies, Inc. has caused this
instrument to be duly executed.

                                           THE WILLIAMS COMPANIES, INC.,

                                           By:  ________________________________
                                                  Name:
                                                  Title:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

Dated:

         This is one of the Securities referred to in the within-mentioned
Indenture.

                                            JPMORGAN CHASE BANK,
                                            as Trustee

                                            By:
                                                 _______________________________
                                                 Authorized Officer

                                      A-3

<PAGE>

                                [REVERSE OF NOTE]

                          THE WILLIAMS COMPANIES, INC.
                           8 5/8% Senior Note due 2010

         This Note is one of a duly authorized issue of debentures, notes, bonds
or other evidences of indebtedness of the Company (hereinafter called the
"Securities") of the series hereinafter specified, all issued or to be issued
under and pursuant to an indenture dated as of November 10, 1997, as
supplemented (as supplemented, herein called the "Indenture"), duly executed and
delivered by the Company to JPMorgan Chase Bank, as successor Trustee (herein
called the "Trustee"), to which Indenture reference is hereby made for a
description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders of the
Securities. The Securities may be issued in one or more series, which different
series may be issued in various aggregate principal amounts, may mature at
different times, may bear interest (if any) at different rates, may be subject
to different redemption provisions (if any), may be subject to different
sinking, purchase or analogous funds (if any) and may otherwise vary as provided
in the Indenture. This Note is one of a series designated as the 8 5/8% Senior
Notes due 2010 (the "Notes") of the Company, initially limited in aggregate
principal amount to $800,000,000. The Company may, from time to time, without
the consent of the existing holders of the Notes, issue additional notes under
the Indenture having the same terms as the Notes in all respects, except for
issue date, issue price, initial interest accrual date and the initial Interest
Payment Date. Any such additional notes will be consolidated with and form a
single series with the Notes under the Indenture.

         At any time and from time to time prior to June 1, 2007, the Company
may, at its option, redeem the Notes, in whole or in part, at the Make-Whole
Price plus accrued and unpaid interest to the redemption date.

         "Make-Whole Amount" with respect to a Note means an amount equal to the
excess, if any, of (1) the present value of the remaining interest, premium and
principal payments due on such Note (excluding any portion of such payments of
interest accrued as of the redemption date), computed using a discount rate
equal to the Treasury Rate plus 50 basis points, over (2) the outstanding
principal amount of such Note.

         "Make-Whole Average Life" means the number of years (calculated to the
nearest one-twelfth) between the redemption date and the Stated Maturity of the
Notes.

         "Make-Whole Price" means the sum of the Outstanding principal amount of
the Notes to be redeemed plus the Make-Whole Amount for such Notes.

                                      A-4

<PAGE>

         "Treasury Rate" is defined as the yield to maturity (calculated on a
semi-annual bond-equivalent basis) at the time of the computation of United
States Treasury securities with a constant maturity (as compiled by and
published in the most recent Federal Reserve Statistical Release H.15 (519),
which has become publicly available at least two Business Days prior to the date
of the redemption notice or, if such Statistical Release is no longer published,
any publicly available source of similar market data) most nearly equal to the
then remaining maturity of the Notes; provided that if the Make-Whole Average
Life of such Note is not equal to the constant maturity of the United States
Treasury security for which a weekly average yield is given, the Treasury Rate
shall be obtained by linear interpolation (calculated to the nearest one-twelfth
of a year) from the weekly average yields of United States Treasury securities
for which such yields are given, except that if the Make-Whole Average Life of
such Note is less than one year, the weekly average yield on actually traded
United States Treasury securities adjusted to a constant maturity of one year
shall be used.

         At any time and from time to time on or after June 1, 2007, the Company
may, at its option, redeem the Notes, in whole or in part, at a redemption price
equal to the percentage of their principal amount set forth below plus accrued
and unpaid interest to the redemption date, if redeemed during the twelve-month
period beginning on June 1 of the years indicated below:

<TABLE>
<CAPTION>
Commencing in Year                        Percentage
------------------                        ----------
<S>                                       <C>
2007                                        104.313%
2008                                        102.156%
2009 and thereafter                         100.000%
</TABLE>

         At any time and from time to time prior to June 1, 2006, the Company
may, at its option, redeem up to 35% of the aggregate principal amount of the
Notes with the net cash proceeds received by the Company from any Equity
Offering (as defined in the Indenture) at a redemption price equal to 108.625%
of their principal amount plus accrued and unpaid interest to the redemption
date; provided that (1) in each case the redemption takes place not later than
120 days after the closing of the related Equity Offering, and (2) at least 65%
of the aggregate principal amount of Notes remains outstanding immediately after
the occurrence of such redemption (excluding Notes held by the Company and its
Subsidiaries).

         This Note may be the subject of a Change of Control Offer and/or an
Asset Sale Offer, each as further described in the Indenture.

                                      A-5

<PAGE>

         If the Company deposits with the Trustee money or U.S. Government
Obligations sufficient to pay the then Outstanding principal of, premium, if
any, and accrued interest on the Notes to the redemption date or the Maturity
Date of the Notes, as the case may be, the Company may in certain circumstances
specified in the Indenture be discharged from the Indenture and the Notes or may
be discharged from certain of its obligations under the Indenture.

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

         Notice of redemption will be mailed at least 30 days but not more than
60 days before the redemption date to each Holder of Notes to be redeemed at his
registered address. Notes in denominations larger than $1,000 may be redeemed in
part but only in whole multiples of $1,000. On or after the redemption date,
interest will cease to accrue on Notes or on the portions thereof called for
redemption, as the case may be.

         In case an Event of Default with respect to the Notes shall have
occurred and be continuing, the principal hereof may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

         The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the Holders of not less than a majority in
aggregate principal amount of the Securities of all series issued under the
Indenture then Outstanding and affected, voting as one class, to add any
provisions to, or change in any manner or eliminate any of the provisions of,
such Indenture or modify in any manner the rights of the Holders of the
Securities of each series so affected; provided that the Company and the Trustee
may not, without the consent of the Holder of each outstanding Security affected
thereby, (i) extend the final maturity of the principal of any Security, or
reduce the principal amount thereof or reduce the rate or extend the time of
payment of interest thereon, or reduce the amount payable on redemption thereof
or change the currency in which the principal thereof (including any amount in
respect of original issues discount) or interest thereon is payable or reduce
the amount of any original issue discount security payable upon acceleration or
provable in bankruptcy or impair the right to institute suit for the enforcement
of any payment on any Security when due or (ii) reduce the aforesaid percentage
in principal amount of Securities of any series issued under such Indenture, the
consent of the Holders of which is required for any such modification. It is
also provided in the Indenture that, with respect to certain defaults or Events
of Default regarding the Securities of any series, prior to any declaration
accelerating the maturity of such Securities, the Holders of a majority in
aggregate principal amount Outstanding of the Securities of such

                                      A-6

<PAGE>

series (or, in the case of certain defaults or Events of Default, all or certain
series of the Securities) may on behalf of the Holders of all the Securities of
such series (or, in the case of certain defaults or Events of Default, all or
certain series of the Securities, as the case may be) waive any such past
default or Event of Default and its consequences. The preceding sentence shall
not, however, apply to a default in the payment of the principal of or interest
on any of the Securities. Any such consent or waiver by the Holder of this Note
(unless revoked as provided in the Indenture) shall be conclusive and binding
upon such Holder and upon all future Holders and owners of this Note and any
Notes which may be issued in exchange or substitution herefor or on registration
of transfer hereof, irrespective of whether or not any notation thereof is made
upon this Note or such other Notes.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note in
the manner, at the respective times, at the rate and in the coin or currency
herein prescribed.

         The Notes are issuable in registered form without coupons in
denominations of $1,000 and any multiple of $1,000 at the office or agency of
the Company in the Borough of Manhattan, The City of New York, and in the manner
and subject to the limitations provided in the Indenture, but without the
payment of any service charge, Notes may be exchanged for a like aggregate
principal amount of Notes of other authorized denominations.

         Upon due presentment for registration of transfer of this Note at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, a new Note or Notes of authorized denominations for an equal aggregate
principal amount will be issued to the transferee in exchange therefor, subject
to the limitations provided in the Indenture, without charge except for any tax
or other governmental charge imposed in connection therewith.

         The Company, the Trustee and any authorized agent of the Company or the
Trustee may deem and treat the registered Holder hereof as the absolute owner of
this Note (whether or not this Note shall be overdue and notwithstanding any
notation of ownership or other writing hereon), for the purpose of receiving
payment of, or on account of, the principal hereof and subject to the provisions
on the face hereof, interest hereon, and for all other purposes, and none of the
Company, the Trustee or any authorized agent of the Company or the Trustee shall
be affected by any notice to the contrary.

         No director, officer, employee, incorporator or stockholder of the
Company or any Subsidiary, as such, will have any liability for any obligations
of the Company under the Notes or the Indenture, or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of
the

                                      A-7

<PAGE>

Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes.

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

         Terms used herein which are defined in the Indenture shall have the
respective meanings assigned thereto in the Indenture.

                                      A-8

<PAGE>

                       Option of Holder to Elect Purchase

         If you want to elect to have this Note purchased by the Company
pursuant to Section 2.08 or 3.08 of the Ninth Supplemental Indenture to the
Indenture, check the appropriate box below:

            ___Section 2.08                 ___Section 3.08

         If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 2.08 or Section 3.08 of the Ninth Supplemental
Indenture to the Indenture, state the amount you elect to have purchased ($1,000
or an integral multiple thereof):

                                  $_______________

Date _______________

                                    Your Signature: ____________________________
                                      (Sign exactly as your name appears on the
                                                              face of this Note)

                                    Tax Identification No.:
                                                            ____________________

Signature Guarantee*:  _________________________

         *        Participant in a recognized Signature Guarantee Medallion
Program (or other signature guarantor acceptable to the Trustee).

                                      A-9<PAGE>

                                                                     EXHIBIT 4.2

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

                          THE WILLIAMS COMPANIES, INC.

                                       AND

                              JPMORGAN CHASE BANK,
                                   as Trustee

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

                                    INDENTURE

                                   Dated as of

                                  May 28, 2003

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

            5.50% JUNIOR SUBORDINATED CONVERTIBLE DEBENTURES DUE 2033

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

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                              PAGE
                                                                                              -----
<S>                                                                                           <C>
                                    ARTICLE 1
                                   DEFINITIONS

Section 1.01.  Definitions...................................................................    1

                                    ARTICLE 2
           ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF DEBENTURES

Section 2.01.  Designation Amount and Issue of Debentures....................................   12
Section 2.02.  Form of Debentures............................................................   12
Section 2.03.  Date and Denomination of Debentures; Payments of Interest.....................   13
Section 2.04.  Execution of Debentures.......................................................   14
Section 2.05.  Exchange and Registration of Transfer of Debentures;
               Restrictions on Transfer......................................................   15
Section 2.06.  Mutilated, Destroyed, Lost or Stolen Debentures...............................   22
Section 2.07.  Temporary Debentures..........................................................   23
Section 2.08.  Cancellation of Debentures....................................................   24
Section 2.09.  CUSIP Numbers.................................................................   24

                                    ARTICLE 3
                     REDEMPTION AND REPURCHASE OF DEBENTURES

Section 3.01.  Company's Right to Redeem.....................................................   25
Section 3.02.  Notice of Optional Redemption; Selection of Debentures........................   25
Section 3.03.  Payment of Debentures Called for Redemption by the Company....................   27
Section 3.04.  Conversion Arrangement on Call for Redemption.................................   28
Section 3.05.  Repurchase of Debentures by the Company at Option of the Holder upon a Change
               of Control....................................................................   28

                                    ARTICLE 4
                           SUBORDINATION OF DEBENTURES

Section 4.01.  Agreement of Subordination....................................................   32
Section 4.02.  Payments to Debentureholders..................................................   33
Section 4.03.  Subrogation of Debentures.....................................................   36
Section 4.04.  Authorization to Effect Subordination.........................................   37
Section 4.05.  Notice to Trustee.............................................................   37
Section 4.06.  Trustee's Relation to Senior and Senior Subordinated Indebtedness.............   38
Section 4.07.  No Impairment of Subordination................................................   39
Section 4.08.  Certain Conversions Not Deemed Payment........................................   39
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                           <C>
Section 4.09.  Article Applicable to Paying Agents...........................................   40
Section 4.10.  Senior and Senior Subordinated Indebtedness Entitled to Rely..................   40
Section 4.11.  Reliance on Judicial Order or Certificate of Liquidating Agent................   40

                                    ARTICLE 5
                       DEFERRAL OF INTEREST PAYMENT PERIOD

Section 5.01.  Extended Interest Payment Period..............................................   40
Section 5.02.  Notification of Deferral of Interest Payment Periods..........................   41

                                    ARTICLE 6
                       PARTICULAR COVENANTS OF THE COMPANY

Section 6.01.  Payment of Principal, Premium and Interest....................................   41
Section 6.02.  Maintenance of Office or Agency...............................................   42
Section 6.03.  Appointments to Fill Vacancies in Trustee's Office............................   42
Section 6.04.  Provisions as to Paying Agent.................................................   42
Section 6.05.  Existence.....................................................................   44
Section 6.06.  Rule 144A Information Requirement.............................................   44
Section 6.07.  Stay, Extension and Usury Laws................................................   44
Section 6.08.  Compliance Certificate........................................................   44
Section 6.09.  Liquidated Damages Notice.....................................................   45
Section 6.10.  Tax Treatment.................................................................   45
Section 6.11.  Restrictions on Certain Payments..............................................   45
Section 6.12.  Termination of Designated Agreements..........................................   47

                                    ARTICLE 7
       DEBENTUREHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

Section 7.01.  Debentureholders' Lists.......................................................   47
Section 7.02.  Preservation and Disclosure of Lists..........................................   47
Section 7.03.  Reports by Trustee............................................................   48
Section 7.04.  Reports by Company............................................................   48

                                   ARTICLE 8
       REMEDIES OF THE TRUSTEE AND DEBENTUREHOLDERS ON AN EVENT OF DEFAULT

Section 8.01.  Events of Default.............................................................   48
Section 8.02.  Payments of Debentures on Default; Suit Therefor..............................   51
Section 8.03.  Application of Monies.........................................................   53
Section 8.04.  Proceedings by Debentureholder................................................   53
Section 8.05.  Proceedings by Trustee........................................................   54
Section 8.06.  Remedies Cumulative and Continuing............................................   55
Section 8.07.  Direction of Proceedings and Waiver of Defaults by Majority of
               Debentureholders..............................................................   55
Section 8.08.  Notice of Defaults............................................................   56
Section 8.09.  Undertaking to Pay Costs......................................................   56
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                           <C>
                                    ARTICLE 9
                                   THE TRUSTEE

Section 9.01.  Duties and Responsibilities of Trustee........................................  56
Section 9.02.  Reliance on Documents, Opinions, Etc..........................................  58
Section 9.03.  No Responsibility For Recitals, Etc...........................................  59
Section 9.04.  Trustee, Paying Agents, Conversion Agents or Registrar May Own Debentures.....  60
Section 9.05.  Monies to Be Held in Trust....................................................  60
Section 9.06.  Compensation and Expenses of Trustee..........................................  60
Section 9.07.  Officer's Certificate as Evidence.............................................  61
Section 9.08.  Conflicting Interests of Trustee..............................................  61
Section 9.09.  Eligibility of Trustee........................................................  61
Section 9.10.  Resignation or Removal of Trustee.............................................  61
Section 9.11.  Acceptance by Successor Trustee...............................................  63
Section 9.12.  Succession by Merger..........................................................  63
Section 9.13.  Preferential Collection of Claims.............................................  64

                                   ARTICLE 10
                              THE DEBENTUREHOLDERS

Section 10.01.  Action by Debentureholders...................................................  64
Section 10.02.  Proof of Execution by Debentureholders.......................................  65
Section 10.03.  Who Are Deemed Absolute Owners...............................................  65
Section 10.04.  Company-owned Debentures Disregarded.........................................  65
Section 10.05.  Revocation of Consents, Future Holders Bound.................................  66

                                   ARTICLE 11
                          MEETINGS OF DEBENTUREHOLDERS

Section 11.01.  Purpose of Meetings..........................................................  66
Section 11.02.  Call of Meetings by Trustee..................................................  67
Section 11.03.  Call of Meetings by Company or Debentureholders..............................  67
Section 11.04.  Qualifications for Voting....................................................  67
Section 11.05.  Regulations..................................................................  67
Section 11.06.  Voting.......................................................................  68
Section 11.07.  No Delay of Rights by Meeting................................................  69

                                   ARTICLE 12
                             SUPPLEMENTAL INDENTURES

Section 12.01.  Supplemental Indentures Without Consent of Debentureholders..................  69
Section 12.02.  Supplemental Indenture with Consent of Debentureholders......................  70
Section 12.03.  Effect of Supplemental Indenture.............................................  71
Section 12.04.  Notation on Debentures.......................................................  72
</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>                                                                                           <C>
Section 12.05.  Evidence of Compliance of Supplemental Indenture to Be
                Furnished to Trustee.........................................................  72

                                   ARTICLE 13
                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

Section 13.01.  Company May Consolidate on Certain Terms.....................................  72
Section 13.02.  Successor to Be Substituted..................................................  73
Section 13.03.  Opinion of Counsel to Be Given Trustee.......................................  74

                                   ARTICLE 14
                     SATISFACTION AND DISCHARGE OF INDENTURE

Section 14.01.  Discharge of Indenture.......................................................  74
Section 14.02.  Deposited Monies to Be Held in Trust by Trustee..............................  75
Section 14.03.  Paying Agent to Repay Monies Held............................................  75
Section 14.04.  Return of Unclaimed Monies...................................................  75

                                   ARTICLE 15
               IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

Section 15.01.  Indenture and Debentures Solely Corporate Obligations........................  75

                                   ARTICLE 16
                            CONVERSION OF DEBENTURES

Section 16.01.  Right to Convert.............................................................  76
Section 16.02.  Exercise of Conversion Privilege; Issuance of Common Stock
                on Conversion; No Adjustment for Interest or Dividends.......................  76
Section 16.03.  Cash Payments in Lieu of Fractional Shares...................................  78
Section 16.04.  Conversion Rate..............................................................  78
Section 16.05.  Adjustment of Conversion Rate................................................  78
Section 16.06.  Effect of Reclassification, Consolidation, Merger or Sale....................  88
Section 16.07.  Taxes on Shares Issued.......................................................  89
Section 16.08.  Reservation of Shares, Shares to Be Fully Paid; Compliance with Governmental
                Requirements; Listing of Common Stock........................................  90
Section 16.09.  Responsibility of Trustee....................................................  91
Section 16.10.  Notice to Holders Prior to Certain Actions...................................  91
Section 16.11.  Stockholder Rights Plans.....................................................  92

                                   ARTICLE 17
                            MISCELLANEOUS PROVISIONS

Section 17.01.  Provisions Binding on Company's Successors...................................  92
Section 17.02.  Official Acts by Successor Corporation.......................................  93
Section 17.03.  Addresses for Notices, Etc...................................................  93
Section 17.04.  Governing Law................................................................  93
</TABLE>

                                       iv

<PAGE>

<TABLE>
<S>                                                                                           <C>
Section 17.05.  Evidence of Compliance with Conditions Precedent, Certificates to Trustee....  93
Section 17.06.  Legal Holidays...............................................................  94
Section 17.07.  Trust Indenture Act..........................................................  94
Section 17.08.  No Security Interest Created.................................................  94
Section 17.09.  Benefits of Indenture........................................................  95
Section 17.10.  Table of Contents, Headings, Etc.............................................  95
Section 17.11.  Authenticating Agent.........................................................  95
Section 17.12.  Execution in Counterparts....................................................  96
Section 17.13.  Severability.................................................................  96
Schedule A:  Designated Agreements
Exhibit A:  Form of Debenture
</TABLE>

                                       v

<PAGE>

                                    INDENTURE

         INDENTURE dated as of May 28, 2003 between The Williams Companies,
Inc., a Delaware corporation duly organized and existing under the laws of the
State of Delaware (hereinafter called the "COMPANY"), having its principal
office at One Williams Center, Tulsa, Oklahoma 74172, and JPMorgan Chase Bank, a
banking corporation duly organized and existing under the laws of the State of
New York, as trustee hereunder (hereinafter called the "TRUSTEE").

                                   WITNESSETH:

         WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the issue of its 5.50% Junior Subordinated Convertible Debentures due
2033 (hereinafter called the "DEBENTURES"), in an aggregate principal amount not
to exceed $300,000,000, and, to provide the terms and conditions upon which the
Debentures are to be authenticated, issued and delivered, the Company has duly
authorized the execution and delivery of this Indenture; and

         WHEREAS, the Debentures, the certificate of authentication to be borne
by the Debentures, a form of assignment, a form of option to elect repurchase
upon a change of control and a form of conversion notice to be borne by the
Debentures are to be substantially in the forms hereinafter provided for; and

         WHEREAS, all acts and things necessary to make the Debentures, when
executed by the Company and authenticated and delivered by the Trustee or a duly
authorized authenticating agent, as in this Indenture provided, the valid,
binding and legal obligations of the Company, and to constitute this Indenture a
valid agreement according to its terms, have been done and performed, and the
execution of this Indenture and the issue hereunder of the Debentures have in
all respects been duly authorized,

         NOW, THEREFORE, THIS INDENTURE WITNESSETH:

         That in order to declare the terms and conditions upon which the
Debentures are, and are to be, authenticated, issued and delivered, and in
consideration of the premises and of the purchase and acceptance of the
Debentures by the holders thereof, the Company covenants and agrees with the
Trustee for the equal and proportionate benefit of the respective holders from
time to time of the Debentures (except as otherwise provided below), as follows:

                                    ARTICLE 1
                                   DEFINITIONS

Section 1.01 . Definitions. The terms defined in this Section 1.01 (except as
herein otherwise expressly provided or unless the context otherwise requires)
for all purposes of this Indenture and of any indenture supplemental hereto
shall

<PAGE>

have the respective meanings specified in this Section 1.01. All other terms
used in this Indenture that are defined in the Trust Indenture Act or which are
by reference therein defined in the Securities Act (except as herein otherwise
expressly provided or unless the context otherwise requires) shall have the
meanings assigned to such terms in the Trust Indenture Act and in the Securities
Act as in force at the date of the execution of this Indenture. The words
"HEREIN", "HEREOF", "HEREUNDER" and words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other
Subdivision. The terms defined in this Article include the plural as well as the
singular.

         "ACCEPTED PURCHASED SHARES" has the meaning specified in Section
16.05(g).

         "ADJUSTMENT EVENT" has the meaning specified in Section 16.05(l).

         "AGENT MEMBERS" has the meaning specified in Section 2.05(a).

         "AFFILIATE" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"CONTROL", when used with respect to any specified Person, means the power to
direct or cause the direction of the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise, and the terms "CONTROLLING" and "CONTROLLED" have
meanings correlative to the foregoing.

         "BOARD OF DIRECTORS" means the Board of Directors of the Company or a
committee of such Board duly authorized to act for it hereunder.

         "BUSINESS DAY" means any day, other than a Saturday or Sunday, that is
not a day on which banking institutions in The City of New York, New York are
authorized or obligated by law or executive order to remain closed or on which
the Corporate Trust Office of the Trustee is closed for business.

         "CHANGE OF CONTROL" means:

         (a)      the acquisition by any Person of beneficial ownership (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, through a
purchase, merger, other acquisition transaction or a series of such
transactions, of shares of the Company's capital stock entitling that Person to
exercise 50% or more of the total voting power of all shares of the Company's
capital stock entitled to vote generally in elections of directors, other than
any acquisition by the Company, any of the Company's Subsidiaries or future
Subsidiaries or any of the Company's employee benefit plans;

         (b)      the first day on which a majority of the members of the board
of directors of the Company are not Continuing Directors; or

                                       2

<PAGE>

         (c)      the consolidation, combination or merger of the Company with
or into any other Person, any merger of another Person into the Company, or any
conveyance, transfer, sale, lease or other disposition of all or substantially
all of the Company's properties and assets to another Person, other than (i) any
transaction (x) that does not result in any reclassification, conversion,
exchange or cancellation of outstanding shares of the Company's capital stock,
and (y) pursuant to which holders of the Company's capital stock immediately
prior to such transaction are entitled to exercise, directly or indirectly, 50%
or more of the total voting power of all shares of the Company's capital stock
entitled to vote generally in elections of directors of the continuing or
surviving Person immediately after giving effect to such transaction, or (ii)
any merger solely for the purpose of changing the Company's jurisdiction of
incorporation and resulting in a reclassification, conversion or exchange of
outstanding shares of common stock solely into shares of common stock of the
surviving entity.

Notwithstanding the foregoing, a Change of Control will not be deemed to have
occurred if:

                  (i)      the Closing Sale Price per share of the Company's
         common stock for any five full Trading Days (not including extended
         hours trading) within the period of ten consecutive Trading Days ending
         immediately after the later of the Change of Control or the public
         announcement of the Change of Control, in the case of a Change of
         Control under (a) above, or the period of ten consecutive full Trading
         Days (not including extended hours trading) ending immediately before
         the Change of Control, in the case of a Change of Control under (c)
         above, equals or exceeds 110% of the Conversion Price in effect on each
         of those Trading Days (as adjusted in accordance with Article 16
         hereof); or

                  (ii)     at least 90% of the consideration in the transaction
         or transactions constituting a Change of Control consists of shares of
         common stock traded or to be traded immediately following such Change
         of Control on a national securities exchange or the Nasdaq National
         Market and, as a result of such transaction or transactions, the
         Debentures become convertible into such common stock (and any rights
         attached thereto).

         "CHANGE OF CONTROL NOTICE" has the meaning specified in Section
3.05(b).

         "CLOSING SALE PRICE" of the shares of Common Stock on any date means
the closing sale price per share (or, if no closing sale price is reported, the
average of the closing bid and ask prices or, if more than one in either case,
the average of the average closing bid and the average closing ask prices) on
such date as reported in composite transactions for the principal United States
securities exchange on which shares of Common Stock are traded or, if the shares
of Common Stock are not listed on a United States national or regional
securities

                                       3

<PAGE>

exchange, as reported by the Nasdaq System or by the National Quotation Bureau
Incorporated. In the absence of such quotations, the Company shall be entitled
to determine the Closing Sale Price on the basis it considers appropriate. The
Closing Sale Price shall be determined without reference to extended or after
hours trading.

         "COMMISSION" means the Securities and Exchange Commission, as from time
to time constituted, created under the Exchange Act, or, if at any time after
the execution of this Indenture such Commission is not existing and performing
the duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

         "COMMON STOCK" means any stock of any class of the Company which has no
preference in respect of dividends or of amounts payable in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the Company
and which is not subject to redemption by the Company. Subject to the provisions
of Section 16.06, however, shares issuable on conversion of Debentures shall
include only shares of the class designated as Common Stock of the Company at
the date of this Indenture (namely, the common stock, par value $1.00) or shares
of any class or classes resulting from any reclassification or reclassifications
thereof and which have no preference in respect of dividends or of amounts
payable in the event of any voluntary or involuntary liquidation, dissolution or
winding up of the Company and which are not subject to redemption by the
Company; provided that if at any time there shall be more than one such
resulting class, the shares of each such class then so issuable on conversion
shall be substantially in the proportion which the total number of shares of
such class resulting from all such reclassifications bears to the total number
of shares of all such classes resulting from all such reclassifications.

         "COMPANY" means the corporation named as the "COMPANY" in the first
paragraph of this Indenture, and, subject to the provisions of Article 13 and
Section 16.06, shall include its successors and assigns.

         "COMPOUNDED INTEREST" has the meaning specified in Section 5.01.

         "CONTINUING DIRECTORS" means, as of any date of determination, any
member of the board of directors of the Company who (i) was a member of the
board of directors throughout the twenty-four consecutive months preceding such
date of determination; or (ii) was nominated for election or elected to the
board of directors with the approval of a majority of the Continuing Directors
who were members of the board of directors at the time of such director's
nomination or election.

         "CONVERSION AGENT" means the office or agency designated by the Company
in accordance with Section 6.02 where the Debentures may be presented for
conversion.

                                       4

<PAGE>

         "CONVERSION DATE" has the meaning specified in Section 16.02.

         "CONVERSION NOTICE" has the meaning specified in Section 16.02.

         "CONVERSION PRICE" as of any day will equal $50 divided by the
Conversion Rate as of such date.

         "CONVERSION RATE" has the meaning specified in Section 16.04.

         "CORPORATE TRUST OFFICE" or other similar term, means the designated
office of the Trustee at which at any particular time its corporate trust
business as it relates to this Indenture shall be principally administered,
which office is, at the date as of which this Indenture is dated, located at 4
New York Plaza, 15th Floor, New York, New York 10004, Attention: Institutional
Trust Services.

         "CURRENCY AGREEMENT" means, with respect to any Person, any foreign
exchange contract, currency swap agreement or other similar agreement or
arrangement designed to protect such Person or any of its Subsidiaries against
fluctuations in currency values to or under which such Person or any of its
Subsidiaries is a party or a beneficiary on the date hereof or becomes a party
or a beneficiary thereafter.

         "CURRENT MARKET PRICE" has the meaning specified in Section 16.05(h).

         "CUSTODIAN" means JPMorgan Chase Bank, as custodian with respect to the
Debentures in global form, or any successor entity thereto.

         "DEBENTURE" or "DEBENTURES" means any Debenture or Debentures (as
defined in the first "WHEREAS" clause hereof), as the case may be, authenticated
and delivered under this Indenture, including any Global Debenture.

         "DEBENTURE REGISTER" has the meaning specified in Section 2.05.

         "DEBENTURE REGISTRAR" has the meaning specified in Section 2.05.

         "DEBENTUREHOLDER" or "HOLDER" as applied to any Debenture, or other
similar terms (but excluding the term "beneficial holder"), means any Person in
whose name at the time a particular Debenture is registered on the Debenture
Registrar's books.

         "DEFAULT" means any event that is, or after notice or passage of time,
or both, would be, an Event of Default.

         "DEFAULTED INTEREST" has the meaning specified in Section 2.03.

         "DEPOSITARY" means, the clearing agency registered under the Exchange
Act that is designated to act as the Depositary for the Global Debentures. The
Depository Trust Company shall be the initial Depositary, until a successor
shall

                                       5

<PAGE>

have been appointed and become such pursuant to the applicable provisions of
this Indenture, and thereafter, "DEPOSITARY" shall mean or include such
successor.

         "DESIGNATED AGREEMENTS" means the agreements specified on Schedule A.

         "DESIGNATED AGREEMENT TERMINATION DATE" has the meaning specified in
Section 6.12.

         "DESIGNATED SENIOR INDEBTEDNESS" means any Senior and Senior
Subordinated Indebtedness of the Company which, at the date of incurrence or
thereafter, has an aggregate principal amount outstanding of, or under which, at
the date of determination, the holders thereof are committed to lend up to, at
least $5,000,000 and which is specifically designated by the Company, at the
time of incurrence or thereafter, in the instrument evidencing or governing such
Senior and Senior Subordinated Indebtedness as "Designated Senior Indebtedness"
for purposes of this Indenture.

         "DETERMINATION DATE" has the meaning specified in Section 16.05(l).

         "EVENT OF DEFAULT" means any event specified in Section 8.01 as an
Event of Default.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder, as in effect from time to
time.

         "EXPIRATION TIME" has the meaning specified in Section 16.05(f).

         "EXTENDED INTEREST PAYMENT PERIOD" has the meaning specified in Section
5.01.

         "FAIR MARKET VALUE" has the meaning specified in Section 16.05(h).

         "GLOBAL DEBENTURE" has the meaning specified in Section 2.02.

         "GUARANTEE" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Indebtedness or other obligation
of any other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation of such other Person (whether arising by virtue
of partnership arrangements, or by agreement to keep well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise) or (ii) entered into for purposes of assuring
in any other manner the obligee of such Indebtedness or other obligation of the
payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part); provided that the term Guarantee shall not include
endorsements for

                                       6

<PAGE>

collection or deposit in the ordinary course of business. The term Guarantee
used as a verb has a corresponding meaning.

         "INDEBTEDNESS" means, with respect to any Person at any date of
determination (without duplication), (i) all indebtedness of such Person for
borrowed money, (ii) all obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments, (iii) all obligations of such
Person in respect of letters of credit, bank guarantees, or bankers acceptance
or other similar instruments (or reimbursement obligations with respect
thereto), (iv) all obligations of such Person to pay the deferred purchase price
of property or services, except Trade Payables, (v) all obligations of such
Person as lessee under leases required or permitted to be treated as capitalized
leases under U.S. generally accepted accounting principles, (vi) all
Indebtedness of others secured by a Lien on any asset of such Person, whether or
not such Indebtedness is assumed by such Person; provided that, for purposes of
determining the amount of any Indebtedness of the type described in this clause,
if recourse with respect to such Indebtedness is limited to such asset, the
amount of such Indebtedness shall be limited to the lesser of the fair market
value of such asset or the amount of such Indebtedness; (vii) all Indebtedness
of others Guaranteed by such Person to the extent such Indebtedness is
Guaranteed by such Person and (viii) to the extent not otherwise included in
this definition, all obligations of such Person under Currency Agreements and
Interest Rate Agreements.

         "INDENTURE" means this instrument as originally executed or, if amended
or supplemented as herein provided, as so amended or supplemented.

         "INITIAL PURCHASER" means Lehman Brothers Inc.

         "INTEREST" means, when used with reference to the Debentures, any
interest payable under the terms of the Debentures, including Liquidated
Damages, if any, payable under the terms of the Registration Rights Agreement.

         "INTEREST PAYMENT DATE" means March 1, June 1, September 1 or December
1.

         "INTEREST RATE AGREEMENT" means, with respect to any Person, any
interest rate protection agreement, interest rate future agreement, interest
rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement or
other similar agreement or arrangement designed to protect such Person or any of
its Subsidiaries against fluctuations in interest rates to or under which such
Person or any of its Subsidiaries is a party or a beneficiary on the date hereof
or becomes a party or a beneficiary thereafter.

         "JUNIOR SECURITIES" has the meaning specified in Section 4.08.

                                       7

<PAGE>

         "JUNIOR SUBORDINATED INDEBTEDNESS" means Indebtedness of the Company
ranking equally and ratably with, or junior to, the Debentures, other than
obligations owed by the Company to its Subsidiaries.

         "LIEN" means, with respect to any property, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such
property. For purposes of this Indenture, the Company shall be deemed to own
subject to a Lien any property which it has acquired or holds subject to the
interest of a vendor or lessor under any conditional sale agreement, capital
lease or other title retention agreement relating to such property.

         "LIQUIDATED DAMAGES" has the meaning specified for "LIQUIDATED DAMAGES
AMOUNT" in Section 2(e) of the Registration Rights Agreement.

         "LIQUIDATED DAMAGES NOTICE" has the meaning specified in Section 6.09.

         "MATURITY DATE" means June 1, 2033.

         "NON-ELECTING SHARE" has the meaning specified in Section 16.06.

         "OFFER EXPIRATION TIME" has the meaning specified in Section 16.05(g).

         "OFFICER'S CERTIFICATE", when used with respect to the Company, means a
certificate signed by the Chairman of the Board, the Chief Executive Officer,
the President or any Vice President (whether or not designated by a number or
numbers or word or words added before or after the title "VICE PRESIDENT"), the
Treasurer or any Assistant Treasurer, or the Secretary of the Company.

         "OPINION OF COUNSEL" means an opinion in writing signed by legal
counsel, who may be an employee of or counsel to the Company, or other counsel
reasonably acceptable to the Trustee.

         "OUTSTANDING", when used with reference to Debentures and subject to
the provisions of Section 10.04, means, as of any particular time, all
Debentures authenticated and delivered by the Trustee under this Indenture,
except:

         (a)      Debentures theretofore canceled by the Trustee or delivered to
the Trustee for cancellation;

         (b)      Debentures, or portions thereof, (i) for the redemption of
which monies in the necessary amount shall have been deposited in trust with the
Trustee or with any Paying Agent (other than the Company) or (ii) which shall
have been otherwise defeased in accordance with Article 14;

         (c)      Debentures in lieu of which, or in substitution for which,
other Debentures shall have been authenticated and delivered pursuant to the
terms of Section 2.06; and

                                       8
<PAGE>

         (d)      Debentures converted into Common Stock pursuant to Article 16
and Debentures deemed not outstanding pursuant to Article 3.

         "PAYING AGENT" means the office or agency designated by the Company in
accordance with Section 6.02 where the Debentures may be presented for payment.

         "PERSON" means a corporation, an association, a partnership, a limited
liability company, an individual, a joint venture, a joint stock company, a
trust, an unincorporated organization or a government or an agency or a
political subdivision thereof.

         "PORTAL MARKET" means The Portal Market operated by the National
Association of Securities Dealers, Inc. or any successor thereto.

         "POTENTIAL EVENT OF DEFAULT" has the meaning specified in Section 6.11.

         "PREDECESSOR DEBENTURE" of any particular Debenture means every
previous Debenture evidencing all or a portion of the same debt as that
evidenced by such particular Debenture, and, for the purposes of this
definition, any Debenture authenticated and delivered under Section 2.06 in lieu
of a lost, destroyed or stolen Debenture shall be deemed to evidence the same
debt as the lost, destroyed or stolen Debenture that it replaces.

         "PREMIUM" means any premium payable under the terms of the Debentures.

         "PURCHASED SHARES" has the meaning specified in Section 16.05(f).

         "QIB" means a "QUALIFIED INSTITUTIONAL BUYER" as defined in Rule 144A.

         "RECORD DATE" has the meaning specified in Section 2.03.

         "REDEMPTION DATE" has the meaning specified in Section 3.02.

         "REDEMPTION NOTICE" has the meaning specified in Section 3.02.

         "REDEMPTION PRICE" has the meaning specified in Section 3.01.

         "REGISTRATION RIGHTS AGREEMENT" means the Registration Rights
Agreement, dated as of May 28, 2003, between the Company and the Initial
Purchaser, as amended from time to time in accordance with its terms.

         "REPRESENTATIVE" means (a) the indenture trustee or other trustee,
agent or representative for holders of Senior and Senior Subordinated
Indebtedness or (b) with respect to any Senior and Senior Subordinated
Indebtedness that does not have any such trustee, agent or other representative,
(i) in the case of such Senior and Senior Subordinated Indebtedness issued
pursuant to an agreement providing

                                       9
<PAGE>

for voting arrangements as among the holders or owners of such Senior and Senior
Subordinated Indebtedness, any holder or owner of such Senior and Senior
Subordinated Indebtedness acting with the consent of the required persons
necessary to bind such holders or owners of such Senior and Senior Subordinated
Indebtedness and (ii) in the case of all other such Senior and Senior
Subordinated Indebtedness, the holder or owner of such Senior and Senior
Subordinated Indebtedness.

         "REPURCHASE DATE" has the meaning specified in Section 3.05(a).

         "REPURCHASE ELECTION" has the meaning specified in Section 3.05(c).

         "REPURCHASE EXPIRATION TIME" has the meaning specified in Section
3.05(b).

         "REPURCHASE PRICE" has the meaning specified in Section 3.05(a).

         "RESPONSIBLE OFFICER" shall mean, any vice president, any assistant
vice president, the secretary, any assistant secretary, the treasurer, any
assistant treasurer, or any trust officer or any other officer of the Trustee
within the Institutional Trust Services--Conventional Debt Unit (or any
successor unit, department or division of the Trustee) located at the Corporate
Trust Office of the Trustee who has direct responsibility for the administration
of this Indenture, and, for the purposes of clause (b) of Section 9.01 and the
proviso of Section 8.08 (and only the proviso), shall also include any other
officer of the Trustee to whom any corporate trust matter is referred because of
such person's knowledge of and familiarity with the particular subject.

         "RESTRICTED PAYMENT" has the meaning specified in Section 6.11.

         "RESTRICTED SECURITIES" has the meaning specified in Section 2.05(b).

         "RULE 144A" means Rule 144A as promulgated under the Securities Act.

         "SECURITIES" has the meaning specified in Section 16.05(d).

         "SECURITIES ACT" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder, as in effect from time to time.

         "SENIOR AND SENIOR SUBORDINATED INDEBTEDNESS" means the principal of
(and premium, if any) and interest (including interest accruing subsequent to
the filing of a petition of bankruptcy at the rate provided for in the
documentation with respect thereto, whether or not such interest is an allowed
claim under applicable law) on, and all other amounts owing in respect of
(including, without limitation, obligations to pay principal and interest,
reimbursement obligations under letters of credit, fees, expenses and
indemnities thereunder) all Indebtedness of the Company whether created,
incurred or assumed before, on or after the date of this instrument; provided
that Senior and Senior Subordinated Indebtedness

                                       10
<PAGE>

shall not include (i) Indebtedness of the Company that, when incurred and
without respect to any election under Section 1111(b) of Title 11, U.S. Code,
was without recourse to the Company, (ii) the Debentures and any other
Indebtedness of the Company which by the terms of the instrument creating or
evidencing the same is expressly made equal in rank and payment with or
subordinated to the Debentures, (iii) obligations by the Company owed to its
Subsidiaries and (iv) stock of the Company.

         "SIGNIFICANT SUBSIDIARY" means, as of any date of determination, a
Subsidiary of the Company that would constitute a "SIGNIFICANT SUBSIDIARY" as
such term is defined under Rule 1-02(w) of Regulation S-X of the Commission as
in effect on the date of this Indenture.

         "SPINOFF VALUATION PERIOD" has the meaning specified in Section
16.05(d).

         "STOCK RECORD DATE" has the meaning specified in Section 16.05(h).

         "SUBSIDIARY" means, with respect to any Person, any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of capital stock or other equity interest entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by such Person or one or more of the other subsidiaries
of that Person (or a combination thereof).

         "TRADE PAYABLES" means, with respect to any Person, any accounts
payable or any other indebtedness or monetary obligation to trade creditors
created, assumed or Guaranteed by such Person or any of its Subsidiaries arising
in the ordinary course of business in connection with the acquisition of goods
or services.

         "TRADING DAY" has the meaning specified in Section 16.05(h).

         "TRIGGER EVENT" has the meaning specified in Section 16.05(d).

         "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939, as
amended, as it was in force at the date of this Indenture, except as provided in
Section 12.03 and Section 17.07; provided that if the Trust Indenture Act of
1939 is amended after the date hereof, the term "TRUST INDENTURE ACT" shall
mean, to the extent required by such amendment, the Trust Indenture Act of 1939
as so amended.

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

                                       11
<PAGE>

                                   ARTICLE 2
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF DEBENTURES

         Section 2.01. Designation Amount and Issue of Debentures. The
Debentures shall be designated as "5.50% JUNIOR SUBORDINATED CONVERTIBLE
DEBENTURES DUE 2033". Debentures not to exceed the aggregate principal amount of
$300,000,000 (except pursuant to Sections 2.05, 2.06, 3.03, 3.05 and 16.02
hereof) upon the execution of this Indenture, or from time to time thereafter,
may be executed by the Company and delivered to the Trustee for authentication,
and the Trustee shall thereupon authenticate and deliver said Debentures to or
upon the written order of the Company, signed by its Chairman of the Board,
Chief Executive Officer, President or any Vice President (whether or not
designated by a number or numbers or word or words added before or after the
title "VICE PRESIDENT"), the Treasurer or any Assistant Treasurer or the
Secretary, without any further action by the Company hereunder.

         Section 2.02. Form of Debentures. The Debentures and the Trustee's
certificate of authentication to be borne by such Debentures shall be
substantially in the form set forth in Exhibit A. The terms and provisions
contained in the form of Debenture attached as Exhibit A hereto shall
constitute, and are hereby expressly made, a part of this Indenture and, to the
extent applicable, the Company and the Trustee, by their execution and delivery
of this Indenture, expressly agree to such terms and provisions and to be bound
thereby.

         Any of the Debentures may have such letters, numbers or other marks of
identification and such notations, legends, endorsements or changes as the
officers executing the same may approve (execution thereof to be conclusive
evidence of such approval) and as are not inconsistent with the provisions of
this Indenture, or as may be required by the Custodian, the Depositary or by the
National Association of Securities Dealers, Inc. in order for the Debentures to
be tradable on The Portal Market or as may be required for the Debentures to be
tradable on any other market developed for trading of securities pursuant to
Rule 144A or as may be required to comply with any applicable law or with any
rule or regulation made pursuant thereto or with any rule or regulation of any
securities exchange or automated quotation system on which the Debentures may be
listed, or to conform to usage, or to indicate any special limitations or
restrictions to which any particular Debentures are subject.

         So long as the Debentures are eligible for book-entry settlement with
the Depositary, or unless otherwise required by law, or otherwise contemplated
by Section 2.05(a), all of the Debentures will be represented by one or more
Debentures in global form registered in the name of the Depositary or the
nominee of the Depositary (a "GLOBAL DEBENTURE"). The transfer and exchange of
beneficial interests in any such Global Debenture shall be effected through the
Depositary in accordance with this Indenture and the applicable procedures of
the Depositary. Except as provided in Section 2.05(a), beneficial owners of a
Global Debenture shall not be entitled to have certificates registered in their
names, will not receive or be

                                       12
<PAGE>

entitled to receive physical delivery of certificates in definitive form and
will not be considered holders of such Global Debenture.

         Any Global Debenture shall represent such of the outstanding Debentures
as shall be specified therein and shall provide that it shall represent the
aggregate amount of outstanding Debentures from time to time endorsed thereon
and that the aggregate amount of outstanding Debentures represented thereby may
from time to time be increased or reduced to reflect redemptions, repurchases,
conversions, transfers or exchanges permitted hereby. Any endorsement of a
Global Debenture to reflect the amount of any increase or decrease in the amount
of outstanding Debentures represented thereby shall be made by the Trustee or
the Custodian, at the direction of the Trustee, in such manner and upon
instructions given by the holder of such Debentures in accordance with this
Indenture. Payment of principal of and Interest and premium, if any, on any
Global Debenture shall be made to the holder of such Debenture.

         Section 2.03. Date and Denomination of Debentures; Payments of
Interest. The Debentures shall be issuable in registered form without coupons in
denominations of $50 principal amount and integral multiples thereof. Each
Debenture shall be dated the date of its authentication and shall bear interest
from the date specified on the face of the form of Debenture attached as Exhibit
A hereto. Interest on the Debentures shall be computed on the basis of a 360-day
year comprised of twelve 30-day months.

         Subject to Article 5, the Person in whose name any Debenture (or its
Predecessor Debenture) is registered on the Debenture Register at the close of
business on any Record Date with respect to any Interest Payment Date shall be
entitled to receive the Interest payable on such Interest Payment Date, except
that the Interest payable upon redemption or repurchase will be payable to the
Person to whom principal is payable pursuant to such redemption or repurchase.
Notwithstanding the foregoing, if any Debenture (or portion thereof) is
converted into Common Stock during the period after a Record Date for the
payment of Interest to, but excluding, the next succeeding Interest Payment
Date, the Company shall not be required to pay Interest on such Interest Payment
Date in respect of any such Debenture (or portion thereof), except as provided
in Section 16.02. Interest shall be payable at the office of the Company
maintained by the Company for such purposes in the Borough of Manhattan, City of
New York, which shall initially be an office or agency of the Trustee. The
Company shall pay Interest (i) on any Debentures in certificated form by check
mailed to the address of the Person entitled thereto as it appears in the
Debenture Register (or, upon written notice, by wire transfer in immediately
available funds, if such Person is entitled to interest on Debentures with an
aggregate principal amount in excess of $2,000,000) or (ii) on any Global
Debenture by wire transfer of immediately available funds to the account of the
Depositary or its nominee. The term "RECORD DATE" with respect to any Interest
Payment Date shall mean the February 15, May 15, August 15 or November 15
preceding the applicable March 1, June 1, September 1 or December 1 Interest
Payment Date, respectively.

                                       13
<PAGE>

         Any Interest on any Debenture which is payable, but is not punctually
paid, deferred in accordance with Article 5 or duly provided for, on any March
1, June 1, September 1 or December 1 (herein called "DEFAULTED INTEREST") shall
forthwith cease to be payable to the Debentureholder on the relevant Record Date
by virtue of his having been such Debentureholder, and such Defaulted Interest
shall be paid by the Company, at its election in each case, as provided in
clause (1) or (2) below:

         (1)      The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Debentures (or their respective
Predecessor Debentures) are registered at the close of business on a special
Record Date for the payment of such Defaulted Interest, which shall be fixed in
the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Debenture and the date
of the proposed payment (which shall be not less than twenty-five (25) days
after the receipt by the Trustee of such notice, unless the Trustee shall
consent to an earlier date), and at the same time the Company shall deposit with
the Trustee an amount of money equal to the aggregate amount to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit on or prior to the date of the proposed payment,
such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the
Trustee shall fix a special record date for the payment of such Defaulted
Interest which shall be not more than fifteen (15) days and not less than ten
(10) days prior to the date of the proposed payment, and not less than ten (10)
days after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such special record date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the special record date therefor to be
mailed, first-class postage prepaid, to each holder at his address as it appears
in the Debenture Register, not less than ten (10) days prior to such special
record date. Notice of the proposed payment of such Defaulted Interest and the
special record date therefor having been so mailed, such Defaulted Interest
shall be paid to the Persons in whose names the Debentures (or their respective
Predecessor Debentures) are registered at the close of business on such special
record date and shall no longer be payable pursuant to the following clause (2)
of this Section 2.03.

         (2)      The Company may make payment of any Defaulted Interest in any
other lawful manner not inconsistent with the requirements of any securities
exchange or automated quotation system on which the Debentures may be listed or
designated for issuance, and upon such notice as may be required by such
exchange or automated quotation system, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this clause, such manner of
payment shall be deemed practicable by the Trustee.

         Section 2.04. Execution of Debentures. The Debentures shall be signed
in the name and on behalf of the Company by the manual or facsimile signature of

                                       14
<PAGE>

its Chairman of the Board, Chief Executive Officer, President or any Vice
President (whether or not designated by a number or numbers or word or words
added before or after the title "VICE PRESIDENT") or its Treasurer (which may be
printed, engraved or otherwise reproduced thereon, by facsimile or otherwise).
Only such Debentures as shall bear thereon a certificate of authentication
substantially in the form set forth on the form of Debenture attached as Exhibit
A hereto, manually executed by the Trustee (or an authenticating agent appointed
by the Trustee as provided by Section 17.11), shall be entitled to the benefits
of this Indenture or be valid or obligatory for any purpose. Such certificate by
the Trustee (or such an authenticating agent) upon any Debenture executed by the
Company shall be conclusive evidence that the Debenture so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled
to the benefits of this Indenture.

         In case any officer of the Company who shall have signed any of the
Debentures shall cease to be such officer before the Debentures so signed shall
have been authenticated and delivered by the Trustee, or disposed of by the
Company, such Debentures nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Debentures had not ceased to be
such officer of the Company, and any Debenture may be signed on behalf of the
Company by such persons as, at the actual date of the execution of such
Debenture, shall be the proper officers of the Company, although at the date of
the execution of this Indenture any such person was not such an officer.

         Section 2.05. Exchange and Registration of Transfer of Debentures;
Restrictions on Transfer. The Company shall cause to be kept at the Corporate
Trust Office a register (the register maintained in such office and in any other
office or agency of the Company designated pursuant to Section 6.02 being herein
sometimes collectively referred to as the "DEBENTURE REGISTER") in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Debentures and of transfers of Debentures. The
Debenture Register shall be in written form or in any form capable of being
converted into written form within a reasonably prompt period of time. The
Trustee is hereby appointed "DEBENTURE REGISTRAR" for the purpose of registering
Debentures and transfers of Debentures as herein provided. The Company may
appoint one or more co-registrars in accordance with Section 6.02; provided,
however, that there shall be only one Debenture Register.

         Upon surrender for registration of transfer of any Debenture to the
Debenture Registrar or any co-registrar, and satisfaction of the requirements
for such transfer set forth in this Section 2.05, the Company shall execute, and
the Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Debentures of any authorized
denominations and of a like aggregate principal amount and bearing such
restrictive legends as may be required by this Indenture.

                                       15
<PAGE>

         Debentures may be exchanged for other Debentures of any authorized
denominations and of a like aggregate principal amount, upon surrender of the
Debentures to be exchanged at any such office or agency maintained by the
Company pursuant to Section 6.02. Whenever any Debentures are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Debentures which the Debentureholder making the exchange is
entitled to receive bearing registration numbers not contemporaneously
outstanding.

         All Debentures issued upon any registration of transfer or exchange of
Debentures shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Debentures
surrendered upon such registration of transfer or exchange.

         All Debentures presented or surrendered for registration of transfer or
for exchange, redemption, repurchase or conversion shall (if so required by the
Company or the Debenture Registrar) be duly endorsed, or be accompanied by a
written instrument or instruments of transfer in form satisfactory to the
Company, and the Debentures shall be duly executed by the Debentureholder
thereof or his attorney duly authorized in writing.

         No service charge shall be made to any holder for any registration of,
transfer or exchange of Debentures, but the Company may require payment by the
holder of a sum sufficient to cover any tax, assessment or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Debentures.

         Neither the Company nor the Trustee nor any Debenture Registrar shall
be required to exchange or register a transfer of (a) any Debentures for a
period of fifteen (15) days next preceding any selection of Debentures to be
redeemed, (b) any Debentures or portions thereof called for redemption pursuant
to Section 3.02, (c) any Debentures or portions thereof surrendered for
conversion pursuant to Article 16 or (d) any Debentures or portions thereof
tendered for repurchase (and not withdrawn) pursuant to Section 3.05.

         (a)      The following provisions shall apply only to Global
Debentures:

                  (i)      Each Global Debenture authenticated under this
         Indenture shall be registered in the name of the Depositary or a
         nominee thereof and delivered to such Depositary or a nominee thereof
         or Custodian therefor, and each such Global Debenture shall constitute
         a single Debenture for all purposes of this Indenture.

                  (ii)     Notwithstanding any other provision in this
         Indenture, no Global Debenture may be exchanged in whole or in part for
         Debentures registered, and no transfer of a Global Debenture in whole
         or in part may be registered, in the name of any Person other than the
         Depositary or a

                                       16
<PAGE>

         nominee thereof unless the Depositary (i) has notified the Company that
         it is unwilling or unable to continue as Depositary for such Global
         Debenture and a successor depositary has not been appointed by the
         Company within ninety days or (ii) has ceased to be a clearing agency
         registered under the Exchange Act, an Event of Default has occurred and
         is continuing or the Company, in its sole discretion, notifies the
         Trustee in writing that it no longer wishes to have all the Debentures
         represented by Global Debentures. Any Global Debenture exchanged
         pursuant to clause (A) or (B) above shall be so exchanged in whole and
         not in part and any Global Debenture exchanged pursuant to clause (C)
         above may be exchanged in whole or from time to time in part as
         directed by the Company. Any Debenture issued in exchange for a Global
         Debenture or any portion thereof shall be a Global Debenture; provided
         that any such Debenture so issued that is registered in the name of a
         Person other than the Depositary or a nominee thereof shall not be a
         Global Debenture.

                  (iii)    Securities issued in exchange for a Global Debenture
         or any portion thereof pursuant to clause (ii) above shall be issued in
         definitive, fully registered form, without interest coupons, shall have
         an aggregate principal amount equal to that of such Global Debenture or
         portion thereof to be so exchanged, shall be registered in such names
         and be in such authorized denominations as the Depositary shall
         designate and shall bear any legends required hereunder. Any Global
         Debenture to be exchanged in whole or in part shall be surrendered by
         the Depositary to the Trustee, as Debenture Registrar. Upon any such
         surrender, the Trustee shall authenticate and make available for
         delivery the Debenture issuable on such exchange to or upon the written
         order of the Depositary or an authorized representative thereof and the
         Global Debenture shall be cancelled or its principal amount reduced in
         accordance with Section 2.05(b)(vi).

                  (iv)     In the event of the occurrence of any of the events
         specified in clause (ii) above, the Company will promptly make
         available to the Trustee a reasonable supply of certificated Debentures
         in definitive, fully registered form, without interest coupons.

                  (v)      Neither any members of, or participants in, the
         Depositary ("AGENT MEMBERS") nor any other Persons on whose behalf
         Agent Members may act shall have any rights under this Indenture with
         respect to any Global Debenture registered in the name of the
         Depositary or any nominee thereof, and the Depositary or such nominee,
         as the case may be, may be treated by the Company, the Trustee and any
         agent of the Company or the Trustee as the absolute owner and holder of
         such Global Debenture for all purposes whatsoever. Notwithstanding the
         foregoing, nothing herein shall prevent the Company, the Trustee or any
         agent of the Company or the Trustee from giving effect to any written
         certification, proxy or other authorization furnished by the Depositary
         or such nominee,

                                       17
<PAGE>

         as the case may be, or impair, as between the Depositary, its Agent
         Members and any other Person on whose behalf an Agent Member may act,
         the operation of customary practices of such Persons governing the
         exercise of the rights of a holder of any Debenture.

                  (vi)     At such time as all interests in a Global Debenture
         have been redeemed, repurchased, converted, canceled or exchanged for
         Debentures in certificated form, such Global Debenture shall, upon
         receipt thereof, be canceled by the Trustee in accordance with standing
         procedures and instructions existing between the Depositary and the
         Custodian. At any time prior to such cancellation, if any interest in a
         Global Debenture is redeemed, repurchased, converted, canceled or
         exchanged for Debentures in certificated form, the principal amount of
         such Global Debenture shall, in accordance with the standing procedures
         and instructions existing between the Depositary and the Custodian, be
         appropriately reduced, and an endorsement shall be made on such Global
         Debenture, by the Trustee or the Custodian, at the direction of the
         Trustee, to reflect such reduction.

         (b)      Every Debenture that bears or is required under this Section
2.05(b) to bear the legend set forth in this Section 2.05(b) (together with any
Common Stock issued upon conversion of the Debentures and required to bear the
legend set forth in Section 2.05(b), collectively, the "RESTRICTED SECURITIES")
shall be subject to the restrictions on transfer set forth in this Section
2.05(b (including those set forth in the legend below) unless such restrictions
on transfer shall be waived by written consent of the Company, and the holder of
each such Restricted Security, by such Debentureholder's acceptance thereof,
agrees to be bound by all such restrictions on transfer. As used in Section
2.05(b) and 2.05(d), the term "TRANSFER" encompasses any sale, pledge, loan,
transfer or other disposition whatsoever of any Restricted Security or any
interest therein.

         Until the expiration of the holding period applicable to sales thereof
under Rule 144(k) under the Securities Act (or any successor provision), any
certificate evidencing such Debenture (and all securities issued in exchange
therefor or substitution thereof, other than Common Stock, if any, issued upon
conversion thereof, which shall bear the legend set forth in Section 2.05(c), if
applicable) shall bear a legend in substantially the following form, unless such
Debenture has been sold pursuant to a registration statement that has been
declared effective under the Securities Act (and which continues to be effective
at the time of such transfer) or pursuant to Rule 144 under the Securities Act
or any similar provision then in force, or unless otherwise agreed by the
Company in writing, with written notice thereof to the Trustee:

         THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING THIS
SECURITY AGREES FOR THE BENEFIT OF THE WILLIAMS COMPANIES, INC. THAT (a) THIS

                                       18
<PAGE>

SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED OTHER THAN (1) TO
THE WILLIAMS COMPANIES, INC. OR ANY AFFILIATE, (2) IN A TRANSACTION ENTITLED TO
AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE
l44A UNDER THE SECURITIES ACT ("RULE l44A"), TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE l44A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE BOX CHECKED
BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
SECURITY), (4) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT, SUBJECT, IN THE CASE OF CLAUSES (2) OR (4), TO THE RECEIPT
BY THE WILLIAMS COMPANIES, INC. OF AN OPINION OF COUNSEL OR SUCH OTHER EVIDENCE
ACCEPTABLE TO THE WILLIAMS COMPANIES, INC. THAT SUCH RESALE, PLEDGE OR TRANSFER
IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (5)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND THAT (b) THE HOLDER WILL,
AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY
OF THE RESALE RESTRICTIONS REFERRED TO HEREIN AND DELIVER TO THE TRANSFEREE
(OTHER THAN A QUALIFIED INSTITUTIONAL BUYER) PRIOR TO THE SALE A COPY OF THE
TRANSFER RESTRICTIONS APPLICABLE HERETO. THIS LEGEND WILL BE REMOVED UPON THE
EARLIER OF THE TRANSFER OF THIS DEBENTURE PURSUANT TO CLAUSE (5) ABOVE OR UPON
ANY TRANSFER OF THIS DEBENTURE UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR
ANY SUCCESSOR PROVISION). THE INDENTURE CONTAINS A PROVISION REQUIRING THE
TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS DEBENTURE IN VIOLATION OF THE
FOREGOING RESTRICTION.

         THIS DEBENTURE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR U.S. FEDERAL
INCOME TAX PURPOSES. FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL
REVENUE CODE OF 1986 (AS AMENDED), THE ISSUE PRICE OF EACH DEBENTURE IS $50 PER
$50 OF PRINCIPAL AMOUNT, THE ISSUE DATE IS MAY 28, 2003, THE YIELD TO MATURITY
IS 5.50% COMPOUNDED QUARTERLY AND THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS
$82.52.

                                       19
<PAGE>

         THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A
REGISTRATION RIGHTS AGREEMENT DATED MAY 28, 2003 AND, BY ITS ACCEPTANCE HEREOF,
AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION
RIGHTS AGREEMENT.

         BECAUSE OF THE FOREGOING RESTRICTIONS, PURCHASERS ARE ADVISED TO
CONSULT LEGAL COUNSEL PRIOR TO MAKING ANY RESALE, PLEDGE OR TRANSFER OF ANY OF
THE CONVERTIBLE DEBENTURES OR COMMON STOCK ISSUABLE UPON CONVERSION OF THE
CONVERTIBLE DEBENTURES. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO
BEAR THE FINANCIAL RISKS OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

         Any Debenture (or security issued in exchange or substitution therefor)
as to which such restrictions on transfer shall have expired in accordance with
their terms or as to conditions for removal of the foregoing legend set forth
therein have been satisfied may, upon surrender of such Debenture for exchange
to the Debenture Registrar in accordance with the provisions of this Section
2.05, be exchanged for a new Debenture or Debentures, of like tenor and
aggregate principal amount, which shall not bear the restrictive legend required
by this Section 2.05(c). If the Restricted Security surrendered for exchange is
represented by a Global Debenture bearing the legend set forth in this Section
2.05(c), the principal amount of the legended Global Debenture shall be reduced
by the appropriate principal amount and the principal amount of a Global
Debenture without the legend set forth in this Section 2.05(c) shall be
increased by an equal principal amount. If a Global Debenture without the legend
set forth in this Section 2.05(c) is not then outstanding, the Company shall
execute and the Trustee shall authenticate and deliver an unlegended Global
Debenture to the Depositary.

         (c)      Until the expiration of the holding period applicable to sales
thereof under Rule 144(k) under the Securities Act (or any successor provision),
any stock certificate representing Common Stock issued upon conversion of any
Debenture shall bear a legend in substantially the following form, unless such
Common Stock has been sold pursuant to a registration statement that has been
declared effective under the Securities Act (and which continues to be effective
at the time of such transfer) or pursuant to Rule 144 under the Securities Act
or any similar provision then in force, or such Common Stock has been issued
upon conversion of Debentures that have been transferred pursuant to a
registration statement that has been declared effective under the Securities Act
or pursuant to Rule 144 under the Securities Act or any similar provision then
in force, or unless otherwise agreed by the Company in writing with written
notice thereof to the transfer agent:

                                       20
<PAGE>

         THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING THIS
SECURITY AGREES FOR THE BENEFIT OF THE WILLIAMS COMPANIES, INC. THAT (a) THIS
SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED OTHER THAN (1) TO
THE WILLIAMS COMPANIES, INC. OR ANY AFFILIATE, (2) IN A TRANSACTION ENTITLED TO
AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE
l44A UNDER THE SECURITIES ACT ("RULE l44A"), TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE l44A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE BOX CHECKED
BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
SECURITY), (4) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT, SUBJECT, IN THE CASE OF CLAUSES (2) OR (4), TO THE RECEIPT
BY THE WILLIAMS COMPANIES, INC. OF AN OPINION OF COUNSEL OR SUCH OTHER EVIDENCE
ACCEPTABLE TO THE WILLIAMS COMPANIES, INC. THAT SUCH RESALE, PLEDGE OR TRANSFER
IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (5)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND THAT (b) THE HOLDER WILL,
AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY
OF THE RESALE RESTRICTIONS REFERRED TO HEREIN AND DELIVER TO THE TRANSFEREE
(OTHER THAN A QUALIFIED INSTITUTIONAL BUYER) PRIOR TO THE SALE A COPY OF THE
TRANSFER RESTRICTIONS APPLICABLE HERETO. THIS LEGEND WILL BE REMOVED UPON THE
EARLIER OF THE TRANSFER OF THIS DEBENTURE PURSUANT TO CLAUSE (5) ABOVE OR UPON
ANY TRANSFER OF THIS DEBENTURE UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR
ANY SUCCESSOR PROVISION). THE INDENTURE CONTAINS A PROVISION REQUIRING THE
TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS DEBENTURE IN VIOLATION OF THE
FOREGOING RESTRICTION.

         THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A
REGISTRATION RIGHTS AGREEMENT DATED MAY 28, 2003 AND, BY ITS ACCEPTANCE HEREOF,
AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION
RIGHTS AGREEMENT.

                                       21
<PAGE>

         BECAUSE OF THE FOREGOING RESTRICTIONS, PURCHASERS ARE ADVISED TO
CONSULT LEGAL COUNSEL PRIOR TO MAKING ANY RESALE, PLEDGE OR TRANSFER OF ANY OF
THE CONVERTIBLE DEBENTURES OR COMMON STOCK ISSUABLE UPON CONVERSION OF THE
CONVERTIBLE DEBENTURES. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO
BEAR THE FINANCIAL RISKS OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

         Any such Common Stock as to which such restrictions on transfer shall
have expired in accordance with their terms or as to which the conditions for
removal of the foregoing legend set forth therein have been satisfied may, upon
surrender of the certificates representing such shares of Common Stock for
exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of
shares of Common Stock, which shall not bear the restrictive legend required by
this Section 2.05(c).

         (d)      Any Debenture or Common Stock issued upon the conversion of a
Debenture that, prior to the expiration of the holding period applicable to
sales thereof under Rule 144(k) under the Securities Act (or any successor
provision), is purchased or owned by the Company or any Affiliate thereof may
not be resold by the Company or such Affiliate unless registered under the
Securities Act or resold pursuant to an exemption from the registration
requirements of the Securities Act in a transaction which results in such
Debentures or Common Stock, as the case may be, no longer being "RESTRICTED
SECURITIES" (as defined under Rule 144).

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

         Section 2.06. Mutilated, Destroyed, Lost or Stolen Debentures. In case
any Debenture shall become mutilated or be destroyed, lost or stolen, the
Company in its discretion may execute, and upon its written request the Trustee
or an authenticating agent appointed by the Trustee shall authenticate and make
available for delivery, a new Debenture, bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Debenture, or in
lieu of and in substitution for the Debenture so destroyed, lost or stolen. In
every case, the applicant for a substituted Debenture shall furnish to the
Company, to the Trustee and, if applicable, to such authenticating agent such
security or indemnity

                                       22
<PAGE>

as may be required by them to save each of them harmless for any loss,
liability, cost or expense caused by or connected with such substitution, and,
in every case of destruction, loss or theft, the applicant shall also furnish to
the Company, to the Trustee and, if applicable, to such authenticating agent
evidence to their satisfaction of the destruction, loss or theft of such
Debenture and of the ownership thereof.

         Following receipt by the Trustee or such authenticating agent, as the
case may be, of satisfactory security or indemnity and evidence, as described in
the preceding paragraph, the Trustee or such authenticating agent may
authenticate any such substituted Debenture and make available for delivery such
Debenture. Upon the issuance of any substituted Debenture, the Company may
require the payment by the holder of a sum sufficient to cover any tax,
assessment or other governmental charge that may be imposed in relation thereto
and any other expenses connected therewith. In case any Debenture which has
matured or is about to mature or has been called for redemption or has been
tendered for repurchase upon a Change of Control (and not withdrawn) or is to be
converted into Common Stock shall become mutilated or be destroyed, lost or
stolen, the Company may, instead of issuing a substitute Debenture, pay or
authorize the payment of or convert or authorize the conversion of the same
(without surrender thereof except in the case of a mutilated Debenture), as the
case may be, if the applicant for such payment or conversion shall furnish to
the Company, to the Trustee and, if applicable, to such authenticating agent
such security or indemnity as may be required by them to save each of them
harmless from any loss, liability, cost or expense caused by or in connection
with such substitution, and, in every case of destruction, loss or theft, the
applicant shall also furnish to the Company, the Trustee and, if applicable, any
Paying Agent or Conversion Agent evidence to their satisfaction of the
destruction, loss or theft of such Debenture and of the ownership thereof.

         Every substitute Debenture issued pursuant to the provisions of this
Section 2.06 by virtue of the fact that any Debenture is destroyed, lost or
stolen shall constitute an additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Debenture shall be found at any
time, and shall be entitled to all the benefits of (but shall be subject to all
the limitations set forth in) this Indenture equally and proportionately with
any and all other Debentures duly issued hereunder. To the extent permitted by
law, all Debentures shall be held and owned upon the express condition that the
foregoing provisions are exclusive with respect to the replacement or payment or
conversion or redemption or repurchase of mutilated, destroyed, lost or stolen
Debentures and shall preclude any and all other rights or remedies
notwithstanding any law or statute existing or hereafter enacted to the contrary
with respect to the replacement or payment or conversion or redemption or
repurchase of negotiable instruments or other securities without their
surrender.

         Section 2.07. Temporary Debentures. Pending the preparation of
Debentures in certificated form, the Company may execute and the Trustee or an

                                       23
<PAGE>

authenticating agent appointed by the Trustee shall, upon the written request of
the Company, authenticate and deliver temporary Debentures (printed or
lithographed). Temporary Debentures shall be issuable in any authorized
denomination, and substantially in the form of the Debentures in certificated
form, but with such omissions, insertions and variations as may be appropriate
for temporary Debentures, all as may be determined by the Company. Every such
temporary Debenture shall be executed by the Company and authenticated by the
Trustee or such authenticating agent upon the same conditions and in
substantially the same manner, and with the same effect, as the Debentures in
certificated form. Without unreasonable delay, the Company will execute and
deliver to the Trustee or such authenticating agent Debentures in certificated
form and thereupon any or all temporary Debentures may be surrendered in
exchange therefor, at each office or agency maintained by the Company pursuant
to Section 6.02 and the Trustee or such authenticating agent shall authenticate
and make available for delivery in exchange for such temporary Debentures an
equal aggregate principal amount of Debentures in certificated form. Such
exchange shall be made by the Company at its own expense and without any charge
therefor. Until so exchanged, the temporary Debentures shall in all respects be
entitled to the same benefits and subject to the same limitations under this
Indenture as Debentures in certificated form authenticated and delivered
hereunder.

         Section 2.08. Cancellation of Debentures. All Debentures surrendered
for the purpose of payment, redemption, repurchase, conversion, exchange or
registration of transfer shall, if surrendered to the Company or any Paying
Agent or any Debenture Registrar or any Conversion Agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be
promptly canceled by it, and no Debentures shall be issued in lieu thereof
except as expressly permitted by any of the provisions of this Indenture. The
Trustee shall dispose of such canceled Debentures in accordance with its
customary procedures. If the Company shall acquire any of the Debentures, such
acquisition shall not operate as a redemption, repurchase or satisfaction of the
indebtedness represented by such Debentures unless and until the same are
delivered to the Trustee for cancellation.

         Section 2.09. CUSIP Numbers. The Company in issuing the Debentures may
use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall
use "CUSIP" numbers in notices of redemption as a convenience to
Debentureholders; provided that any such notice may state that no representation
is made as to the correctness of such numbers either as printed on the
Debentures or as contained in any notice of a redemption and that reliance may
be placed only on the other identification numbers printed on the Debentures,
and any such redemption shall not be affected by any defect in or omission of
such numbers. The Company will promptly notify the Trustee of any change in the
"CUSIP" numbers.

                                       24
<PAGE>

                                   ARTICLE 3
                     REDEMPTION AND REPURCHASE OF DEBENTURES

         Section 3.01. Company's Right to Redeem. Prior to June 1, 2010, the
Securities will not be redeemable at the Company's option. Beginning on June 1,
2010, if, for at least 20 Trading Days in the period of 30 consecutive Trading
Days ending on the Trading Day immediately preceding the date of mailing of the
Redemption Notice pursuant to Section 3.02 (including on the last Trading Day in
such period), the Closing Sale Price of the Common Stock shall have exceeded
130% of the Conversion Price in effect on the last Trading Day of such period,
the Company, at its option, may redeem the Securities in accordance with the
provisions of Sections 3.02, 3.03 and 3.04 on the Redemption Date for cash, in
whole or in part, at a redemption price (the "REDEMPTION PRICE") equal to 100%
of the principal amount of the Securities to be redeemed together in each case
with accrued and unpaid Interest (including deferred interest) on the Securities
redeemed to (but excluding) the Redemption Date.

         Section 3.02. Notice of Optional Redemption; Selection of Debentures.
In case the Company shall desire to exercise the right to redeem all or, as the
case may be, any part of the Debentures pursuant to Section 3.01 it shall fix a
date for redemption (the "REDEMPTION DATE") and it or, at its written request
received by the Trustee not fewer than forty-five (45) days prior (or such
shorter period of time as may be acceptable to the Trustee) to the Redemption
Date, the Trustee in the name of and at the expense of the Company, shall mail
or cause to be mailed a notice of such redemption (a "REDEMPTION NOTICE") not
fewer than thirty (30) nor more than sixty (60) days prior to the Redemption
Date to each holder of Debentures so to be redeemed as a whole or in part at its
last address as the same appears on the Debenture Register; provided that if the
Company shall give such notice, it shall also give written notice of the
Redemption Date to the Trustee. Such mailing shall be by first class mail. The
notice, if mailed in the manner herein provided, shall be conclusively presumed
to have been duly given, whether or not the holder receives such notice. In any
case, failure to give such notice by mail or any defect in the notice to the
holder of any Debenture designated for redemption as a whole or in part shall
not affect the validity of the proceedings for the redemption of any other
Debenture. Concurrently with the mailing of any such Redemption Notice, the
Company shall issue a press release announcing such redemption, the form and
content of which press release shall be determined by the Company in its sole
discretion. The failure to issue any such press release or any defect therein
shall not affect the validity of the Redemption Notice or any of the proceedings
for the redemption of any Debenture called for redemption.

         Each such Redemption Notice shall specify the aggregate principal
amount of Debentures to be redeemed, the CUSIP number or numbers of the
Debentures being redeemed, the date fixed for redemption (which shall be a
Business Day), the Redemption Price at which Debentures are to be redeemed, the
place or places of payment, that payment will be made upon presentation and
surrender of such Debentures, that Interest accrued to the date fixed for

                                       25
<PAGE>

redemption will be paid as specified in said notice, and that on and after said
date Interest thereon or on the portion thereof to be redeemed will cease to
accrue. Such notice shall also state the current Conversion Rate and the date on
which the right to convert such Debentures or portions thereof into Common Stock
will expire. If fewer than all the Debentures are to be redeemed, the Redemption
Notice shall identify the Debentures to be redeemed (including CUSIP numbers, if
any). In case any Debenture is to be redeemed in part only, the Redemption
Notice shall state the portion of the principal amount thereof to be redeemed
and shall state that, on and after the Redemption Date, upon surrender of such
Debenture, a new Debenture or Debentures in principal amount equal to the
unredeemed portion thereof will be issued.

         On or prior to the Redemption Date specified in the Redemption Notice
given as provided in this Section 3.02, the Company will deposit with the
Trustee or with one or more Paying Agents (or, if the Company is acting as its
own Paying Agent, set aside, segregate and hold in trust as provided in Section
6.04) an amount of money in immediately available funds sufficient to redeem on
the Redemption Date all the Debentures (or portions thereof) so called for
redemption (other than those theretofore surrendered for conversion into Common
Stock) at the appropriate Redemption Price; provided that if such payment is
made on the Redemption Date it must be received by the Trustee or Paying Agent,
as the case may be, by 11:00 a.m., New York City time, on such date. The Company
shall be entitled to retain any interest, yield or gain on amounts deposited
with the Trustee or any Paying Agent pursuant to this Section 3.02 in excess of
amounts required hereunder to pay the Redemption Price and accrued interest to,
but excluding, the Redemption Date. Subject to the last sentence of Section
9.05, if any Debenture called for redemption is converted pursuant hereto prior
to such Redemption Date, any money deposited with the Trustee or any Paying
Agent or so segregated and held in trust for the redemption of such Debenture
shall be paid to the Company upon its written request, or, if then held by the
Company, shall be discharged from such trust. Whenever any Debentures are to be
redeemed, the Company will give the Trustee written notice in the form of an
Officer's Certificate not fewer than forty-five (45) days (or such shorter
period of time as may be acceptable to the Trustee) prior to the Redemption Date
as to the aggregate principal amount of Debentures to be redeemed.

         If less than all of the outstanding Debentures are to be redeemed, the
Trustee shall select the Debentures or portions thereof of the Global Debenture
or the Debentures in certificated form to be redeemed (in principal amounts of
$50 or multiples thereof) by lot, on a pro rata basis or by another method the
Trustee deems fair and appropriate. If any Debenture selected for partial
redemption is submitted for conversion in part after such selection, the portion
of such Debenture submitted for conversion shall be deemed (so far as may be
possible) to be the portion to be selected for redemption. The Debentures (or
portions thereof) so selected shall be deemed duly selected for redemption for
all purposes

                                       26
<PAGE>

hereof, notwithstanding that any such Debenture is submitted for conversion in
part before the mailing of the Redemption Notice.

         Upon any redemption of less than all of the outstanding Debentures, the
Company and the Trustee may (but need not), solely for purposes of determining
the pro rata allocation among such Debentures as are unconverted and outstanding
at the time of redemption, treat as outstanding any Debentures surrendered for
conversion during the period of fifteen (15) days next preceding the mailing of
a Redemption Notice and may (but need not) treat as outstanding any Debenture
authenticated and delivered during such period in exchange for the unconverted
portion of any Debenture converted in part during such period.

         Section 3.03. Payment of Debentures Called for Redemption by the
Company. If notice of redemption has been given as provided in Section 3.02, the
Debentures or portion of Debentures with respect to which such notice has been
given shall, unless converted into Common Stock pursuant to the terms hereof,
become due and payable on the date fixed for redemption and at the place or
places stated in such notice at the applicable Redemption Price, and on and
after said date (unless the Company shall default in the payment of such
Debentures at the Redemption Price) Interest on the Debentures or portion of
Debentures so called for redemption shall cease to accrue and, after the close
of business on the Business Day immediately preceding the Redemption Date
(unless the Company shall default in the payment of such Debentures at the
Redemption Price) such Debentures shall cease to be convertible into Common
Stock and, except as provided in Section 9.05 and 13.04, to be entitled to any
benefit or security under this Indenture, and the holders thereof shall have no
right in respect of such Debentures except the right to receive the Redemption
Price thereof. On presentation and surrender of such Debentures at a place of
payment in said notice specified, the said Debentures or the specified portions
thereof shall be paid and redeemed by the Company at the applicable Redemption
Price.

         Upon presentation of any Debenture redeemed in part only, the Company
shall execute and the Trustee shall authenticate and make available for delivery
to the holder thereof, at the expense of the Company, a new Debenture or
Debentures, of authorized denominations, in principal amount equal to the
unredeemed portion of the Debentures so presented.

         Notwithstanding the foregoing, the Trustee shall not redeem less than
all the outstanding Debentures or mail any Redemption Notice with respect to
less than all the outstanding Debentures during the continuance of a default in
payment of Interest or premium, if any, on the Debentures or during any Extended
Interest Payment Period. If any Debenture called for redemption shall not be so
paid upon surrender thereof for redemption, the principal and premium, if any,
shall, until paid or duly provided for, continue to bear interest at the rate
borne by the Debenture, compounded quarterly, and such Debenture shall remain
convertible into Common Stock until the principal and premium, if any, and
Interest shall have been paid or duly provided for.

                                       27
<PAGE>

         Section 3.04. Conversion Arrangement on Call for Redemption. In
connection with any redemption of Debentures, the Company may arrange for the
purchase and conversion of any Debentures by an agreement with one or more
investment banks or other purchasers to purchase such Debentures by paying to
the Trustee in trust for the Debentureholders, on or before the date fixed for
redemption, an amount not less than the applicable Redemption Price of such
Debentures. Notwithstanding anything to the contrary contained in this Article
3, the obligation of the Company to pay the Redemption Price of such Debentures
shall be deemed to be satisfied and discharged to the extent such amount is so
paid by such purchasers. If such an agreement is entered into, a copy of which
will be filed with the Trustee prior to the date fixed for redemption, any
Debentures not duly surrendered for conversion by the holders thereof may, at
the option of the Company, be deemed, to the fullest extent permitted by law,
acquired by such purchasers from such holders and (notwithstanding anything to
the contrary contained in Article 16) surrendered by such purchasers for
conversion, all as of immediately prior to the close of business on the date
fixed for redemption (and the right to convert any such Debentures shall be
extended through such time), subject to payment of the above amount as
aforesaid. At the direction of the Company, the Trustee shall hold and dispose
of any such amount paid to it in the same manner as it would monies deposited
with it by the Company for the redemption of Debentures. Without the Trustee's
prior written consent, no arrangement between the Company and such purchasers
for the purchase and conversion of any Debentures shall increase or otherwise
affect any of the powers, duties, responsibilities or obligations of the Trustee
as set forth in this Indenture.

         Section 3.05. Repurchase of Debentures by the Company at Option of the
Holder upon a Change of Control.

         (a)      If a Change of Control shall occur at any time prior to the
Maturity Date, then each Debentureholder shall have the right, at such holder's
option, to require the Company to repurchase all of such holder's Debentures, or
any portion thereof that is a multiple of $50 principal amount, on the date (the
"REPURCHASE DATE") that is specified by the Company in accordance with Section
3.05(b) (or, if such day is not a Business Day, the next succeeding Business
Day) at a repurchase price (the "REPURCHASE PRICE") equal to 100% of the
principal amount thereof, together with accrued and unpaid Interest (including
deferred interest) to, but excluding, the Repurchase Date.

         (b)      On or before the thirtieth (30th) day after the occurrence of
a Change of Control, the Company, or at its written request the Trustee in the
name of and at the expense of the Company (which request must be received by the
Trustee at least five (5) Business Days prior to the date the Trustee is
requested to give notice as described below, unless the Trustee shall agree to a
shorter period), shall mail or cause to be mailed, by first class mail, to all
holders of record on such date a notice (the "CHANGE OF CONTROL NOTICE") of the
occurrence of such Change of Control and of the repurchase right at the option
of the holders arising as a result

                                       28

<PAGE>

thereof to each holder of Debentures at its last address as the same appears on
the Debenture Register; provided that if the Company shall give such notice, it
shall also give written notice of the Change of Control to the Trustee at such
time as it is mailed to Debentureholders. Such notice, if mailed in the manner
herein provided, shall be conclusively presumed to have been duly given, whether
or not the holder receives such notice. Concurrently with the mailing of any
Change of Control Notice, the Company shall issue a press release announcing
such Change of Control referred to in the Change of Control Notice, the form and
content of which press release shall be determined by the Company in its sole
discretion. The failure to issue any such press release or any defect therein
shall not affect the validity of the Change of Control Notice or any proceedings
for the repurchase of any Debenture which any Debentureholder may elect to have
the Company repurchase as provided in this Section 3.05.

         Each Change of Control Notice shall specify the circumstances
constituting the Change of Control, the Repurchase Date (which must be no less
than 20 and no more than 45 days after the date of the Change of Control
Notice), the Repurchase Price, that the holder must exercise the repurchase
right on or prior to the close of business on the Repurchase Date (the
"REPURCHASE EXPIRATION TIME"), that the holder shall have the right to withdraw
any Debentures surrendered prior to the Repurchase Expiration Time, a
description of the procedure which a Debentureholder must follow to exercise
such repurchase right or to withdraw any surrendered Debentures, the place or
places where the holder is to surrender such holder's Debentures, the amount of
interest accrued on each Debenture to the Repurchase Date and the CUSIP number
or numbers of the Debentures (if then generally in use).

         No failure of the Company to give the foregoing notices and no defect
therein shall limit the Debentureholders' repurchase rights or affect the
validity of the proceedings for the repurchase of the Debentures pursuant to
this Section 3.05.

         (c)      Debentures shall be repurchased pursuant to this Section 3.05
at the option of the holder upon:

                  (i)      delivery to the Trustee (or other Paying Agent
         appointed by the Company) by a holder of a duly completed notice (the
         "REPURCHASE ELECTION") in the form set forth on the reverse of the
         Debenture at any time prior to the Repurchase Expiration Time; and

                  (ii)     delivery or book-entry transfer of the Debentures to
         the Trustee (or other Paying Agent appointed by the Company) at any
         time after delivery of the Repurchase Election (together with all
         necessary endorsements) at the Corporate Trust Office of the Trustee
         (or other Paying Agent appointed by the Company) in the Borough of
         Manhattan, such delivery being a condition to receipt by the holder of
         the purchase price therefor; provided that such purchase price shall be
         so paid pursuant

                                       29

<PAGE>

         to this Section 3.05 only if the Debenture so delivered to the Trustee
         (or other Paying Agent appointed by the Company) shall conform in all
         respects to the description thereof in the related Repurchase Election.
         All questions as to the validity, eligibility (including time of
         receipt) and acceptance of any Debenture for repurchase shall be
         determined by the Company, whose determination shall be final and
         binding absent manifest error.

         (d)      The Company shall purchase from the holder thereof, pursuant
to this Section 3.05, a portion of a Debenture, if the principal amount of such
portion is $50 or a whole multiple of $50. Provisions of this Indenture that
apply to the purchase of all of a Debenture also apply to the purchase of such
portion of such Debenture. Upon presentation of any Debenture repurchased in
part only, the Company shall execute and the Trustee shall authenticate and make
available for delivery to the holder thereof, at the expense of the Company, a
new Debenture or Debentures, of any authorized denomination, in aggregate
principal amount equal to the portion of the Debentures presented not
repurchased.

         (e)      On or prior to the Repurchase Date, the Company will deposit
with the Trustee or with one or more Paying Agents (or, if the Company is acting
as its own Paying Agent, set aside, segregate and hold in trust as provided in
Section 6.04) an amount of cash sufficient to repurchase on the Repurchase Date
all the Debentures or portions thereof to be repurchased on such date at the
Repurchase Price; provided that if such payment is made on the Repurchase Date
it must be received by the Trustee or Paying Agent, as the case may be, by 11:00
a.m., New York City time, on such date.

         If the Trustee or other Paying Agent appointed by the Company, or the
Company or an Affiliate of the Company, if it or such Affiliate is acting as the
Paying Agent, holds cash sufficient to pay the aggregate Repurchase Price of all
the Debentures or portions thereof that are to be repurchased as of the
Repurchase Date, on or after the Repurchase Date (i) such Debentures will cease
to be outstanding, (ii) Interest on such Debentures will cease to accrue and
(iii) all other rights of the holders of such Debentures will terminate, whether
or not book-entry transfer of the Debentures has been made or the Debentures
have been delivered to the Trustee or Paying Agent, other than the right to
receive the Repurchase Price upon delivery of the Debentures.

         (f)      Upon receipt by the Trustee (or other Paying Agent appointed
by the Company) of the Repurchase Election specified in Section 3.05(c), the
holder of the Debenture in respect of which such Repurchase Election was given
shall (unless such Repurchase Election is validly withdrawn) thereafter be
entitled to receive solely the Repurchase Price with respect to such Debenture.
Such Repurchase Price shall be paid to such holder, subject to receipt of funds
and/or Debentures by the Trustee (or other Paying Agent appointed by the
Company), promptly (but in no event more than five (5) Business Days) following
the later of (x) the Repurchase Date with respect to such Debenture (provided
the holder has

                                       30

<PAGE>

satisfied the conditions in Section 3.05(c)) and (y) the time of delivery of
such Debenture to the Trustee (or other Paying Agent appointed by the Company)
by the holder thereof in the manner required by Section 3.05(c). Debentures in
respect of which a Repurchase Election has been given by the holder thereof may
not be converted pursuant to Article 16 hereof on or after the date of the
delivery of such Repurchase Election unless such Repurchase Election has first
been validly withdrawn.

         (g)      Notwithstanding anything herein to the contrary, any holder
delivering to the office of the Trustee (or other Paying Agent appointed by the
Company) the Repurchase Election contemplated by Section 3.05(c) shall have the
right to withdraw such Repurchase Election at any time prior to the close of
business on the Business Day preceding the Repurchase Date by delivery of a
written notice of withdrawal to the Trustee (or other Paying Agent appointed by
the Company) specifying:

                  (i)      the certificate number, if any, of the Debenture in
         respect of which such notice of withdrawal is being submitted, or the
         appropriate Depositary information if the Debenture in respect of which
         such notice of withdrawal is being submitted is represented by a Global
         Debenture,

                  (ii)     the principal amount of the Debenture with respect to
         which such notice of withdrawal is being submitted, and

                  (iii)    the principal amount, if any, of such Debenture which
         remains subject to the original Repurchase Election and which has been
         or will be delivered for repurchase by the Company.

         The Trustee (or other Paying Agent appointed by the Company) shall
promptly notify the Company of the receipt by it of any Repurchase Election or
written notice of withdrawal thereof.

         (h)      In the case of a reclassification, change, consolidation,
merger, combination, sale or conveyance to which Section 16.06 applies, in which
the Common Stock of the Company is changed or exchanged as a result into the
right to receive stock, securities or other property or assets (including cash),
which includes shares of Common Stock of the Company or shares of common stock
of another Person that are, or upon issuance will be, traded on a United States
national securities exchange or approved for trading on an established automated
over-the-counter trading market in the United States and such shares constitute
at the time such change or exchange becomes effective in excess of 50% of the
aggregate fair market value of such stock, securities or other property or
assets (including cash) (as determined by the Company, which determination shall
be conclusive and binding), then the Person formed by such consolidation or
resulting from such merger or which acquires such assets, as the case may be,
shall execute and deliver to the Trustee a supplemental indenture (accompanied
by an Opinion of Counsel that such supplemental indenture complies with the

                                       31

<PAGE>

Trust Indenture Act as in force at the date of execution of such supplemental
indenture) modifying the provisions of this Indenture relating to the right of
holders of the Debentures to cause the Company to repurchase the Debentures
following a Change of Control, including without limitation the applicable
provisions of this Section 3.05 and the definitions of Common Stock and Change
of Control, as appropriate, as determined in good faith by the Company (which
determination shall be conclusive and binding), to make such provisions apply to
such other Person if different from the Company and the common stock issued by
such Person (in lieu of the Company and the Common Stock of the Company).

         (i)      The Company will comply with the provisions of Rule 13e-4 and
any other tender offer rules under the Exchange Act to the extent then
applicable in connection with the repurchase rights of the holders of Debentures
in the event of a Change of Control.

         (j)      The Trustee (or other Paying Agent appointed by the Company)
shall return to the Company any cash that remains unclaimed as provided in
Section 14.04, together with interest, if any, thereon, held by them for the
payment of the Repurchase Price; provided that to the extent that the aggregate
amount of cash deposited by the Company pursuant to Section 3.05(e) exceeds the
aggregate Repurchase Price of the Debentures or portions thereof which the
Company is obligated to purchase as of the Repurchase Date then, unless
otherwise agreed in writing with the Company, promptly after the Business Day
following the Repurchase Date, the Trustee shall return any such excess to the
Company together with interest, if any, thereon.

                                   ARTICLE 4
                           SUBORDINATION OF DEBENTURES

         Section 4.01. Agreement of Subordination. The Company covenants and
agrees, and each holder of Debentures issued hereunder by its acceptance thereof
likewise covenants and agrees, that all Debentures shall be issued subject to
the provisions of this Article 4, and each Person holding any Debentures,
whether upon original issue or upon registration of transfer, assignment or
exchange thereof, accepts and agrees to be bound by such provisions.

         The payment of the principal of, premium, if any, and Interest on all
Debentures (including, but not limited to, the Redemption Price with respect to
Debentures called for redemption in accordance with Section 3.02 or Repurchase
Price with respect to Debentures submitted for repurchase in accordance with
Section 3.05) issued hereunder shall, to the extent and in the manner
hereinafter set forth, be subordinated and subject in right of payment to the
prior payment in full of all Senior and Senior Subordinated Indebtedness,
whether outstanding at the date of this Indenture or thereafter incurred.

                                       32

<PAGE>

         No provision of this Article 4 shall prevent the occurrence of any
default or Event of Default hereunder or have any effect on the rights of the
holders of the Debentures or the Trustee to accelerate the maturity of the
Debentures.

         Section 4.02. Payments to Debentureholders. No payment shall be made
with respect to the principal of, premium, if any, or Interest on the Debentures
(including, but not limited to, the Redemption Price with respect to Debentures
called for redemption in accordance with Section 3.02 or Repurchase Price with
respect to Debentures submitted for repurchase in accordance with Section 3.05),
except payments and distributions made by the Trustee as permitted by the first
or second paragraph of Section 4.05, if:

                  (i)      a default in the payment of principal, premium, if
         any, interest, rent or other obligations in respect of Designated
         Senior Indebtedness occurs and is continuing (or, in the case of
         Designated Senior Indebtedness for which there is a period of grace, in
         the event of such a default that continues beyond the period of grace,
         if any, specified in the instrument or lease evidencing such Designated
         Senior Indebtedness) (a "PAYMENT DEFAULT"); or

                  (ii)     a default, other than a Payment Default, on any
         Designated Senior Indebtedness occurs and is continuing that then
         permits holders of such Designated Senior Indebtedness to accelerate
         its maturity (or in the case of any lease that is Designated Senior
         Indebtedness, a default occurs and is continuing that then permits the
         lessor to either terminate the lease or require the Company to make an
         irrevocable offer to terminate the lease following an event of default
         thereunder) and the Trustee receives a notice of the default (a
         "PAYMENT BLOCKAGE NOTICE") from a holder of Designated Senior
         Indebtedness or a Representative of Designated Senior Indebtedness (a
         "NON-PAYMENT DEFAULT").

         If the Trustee receives any Payment Blockage Notice pursuant to clause
(ii) above, no subsequent Payment Blockage Notice shall be effective for
purposes of this Section 4.02 unless and until at least 360 days shall have
elapsed since the initial effectiveness of the immediately prior Payment
Blockage Notice. No Non-Payment Default that existed or was continuing on the
date of delivery of any Payment Blockage Notice (to the extent the holder or the
Representative of Designated Senior Indebtedness giving such notice had
knowledge of the same) to the Trustee shall be, or be made, the basis for a
subsequent Payment Blockage Notice.

         The Company may and shall resume payments on and distributions in
respect of the Debentures (including, but not limited to, the Redemption Price
with respect to Debentures called for redemption in accordance with Section 3.02
or Repurchase Price with respect to Debentures submitted for repurchase in
accordance with Section 3.05) upon the earlier of:

                                       33

<PAGE>

                           (1)      in the case of a Payment Default, the date
                  upon which any such Payment Default is cured or waived or
                  ceases to exist, or

                           (2)      in the case of a Non-Payment Default, the
                  earlier of (a) the date upon which such default is cured or
                  waived or ceases to exist or (b) 179 days after the applicable
                  Payment Blockage Notice is received by the Trustee if the
                  maturity of such Designated Senior Indebtedness has not been
                  accelerated (or in the case of any lease, 179 days after
                  notice is received if the Company has not received notice that
                  the lessor under such lease has exercised its right to
                  terminate the lease or require the Company to make an
                  irrevocable offer to terminate the lease following an event of
                  default thereunder), unless this Article 4 otherwise prohibits
                  the payment or distribution at the time of such payment or
                  distribution.

         Upon any payment by the Company, or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to
creditors upon any dissolution or winding up or liquidation or reorganization of
the Company, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other proceedings, all amounts due or to become due upon all
Senior and Senior Subordinated Indebtedness shall first be paid in full in cash
(including interest after the commencement of any such proceeding at the rate
specified in the applicable debt agreement or other document, whether or not
allowed as a claim in such proceeding) before any payment is made on account of
the principal of, premium, if any, or Interest on the Debentures (except
payments made pursuant to Article 14 from monies deposited with the Trustee
pursuant thereto prior to commencement of proceedings for such dissolution,
winding up, liquidation or reorganization), and upon any such dissolution or
winding up or liquidation or reorganization of the Company or bankruptcy,
insolvency, receivership or other similar proceeding, any payment by the
Company, or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the holders of the Debentures
or the Trustee would be entitled, except for the provisions of this Article 4,
shall (except as aforesaid) be paid by the Company or by any receiver, trustee
in bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the holders of the Debentures or by the Trustee under this
Indenture if received by them or it, directly to the holders of Senior and
Senior Subordinated Indebtedness (pro rata to such holders on the basis of the
respective amounts of Senior and Senior Subordinated Indebtedness held by such
holders, or as otherwise required by law or a court order) or their
Representative or Representatives, as their respective interests may appear, to
the extent necessary to pay all Senior and Senior Subordinated Indebtedness in
full in cash, after giving effect to any concurrent payment or distribution to
or for the holders of Senior and Senior Subordinated Indebtedness, before any
payment or distribution is made to the holders of the Debentures or to the
Trustee.

                                       34

<PAGE>

         For purposes of this Article 4, the words, "CASH, PROPERTY OR
SECURITIES" shall not be deemed to include shares of Common Stock of the Company
as reorganized or readjusted, or securities of the Company or any other
corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article
4 with respect to the Debentures to the payment of all Senior and Senior
Subordinated Indebtedness which may at the time be outstanding; provided that
(i) the Senior and Senior Subordinated Indebtedness is assumed by the new
corporation, if any, resulting from any reorganization or readjustment, and (ii)
the rights of the holders of Senior and Senior Subordinated Indebtedness (other
than leases which are not assumed by the Company or the new corporation, as the
case may be) are not, without the consent of such holders, altered by such
reorganization or readjustment. The consolidation of the Company with, or the
merger of the Company into, another corporation or the liquidation or
dissolution of the Company following the conveyance or transfer of its property
as an entirety, or substantially as an entirety, to another Person upon the
terms and conditions provided for in Article 13 shall not be deemed a
dissolution, winding-up, liquidation or reorganization for the purposes of this
Section 4.02 if such other Person shall, as a part of such consolidation,
merger, conveyance or transfer, comply with the conditions stated in Article 13.

         In the event of the acceleration of the Debentures because of an Event
of Default, no payment or distribution shall be made to the Trustee or any
holder of Debentures in respect of the principal of, premium, if any, or
Interest on the Debentures (including, but not limited to, the Redemption Price
with respect to Debentures called for redemption in accordance with Section 3.02
or Repurchase Price with respect to Debentures submitted for repurchase in
accordance with Section 3.05), except payments and distributions made by the
Trustee as permitted by the first or second paragraph of Section 4.05, until all
Senior and Senior Subordinated Indebtedness has been paid in full in cash
(including interest after the commencement of any such proceeding at the rate
specified in the applicable debt agreement or other document, whether or not
allowed as a claim in such proceeding) or such acceleration is rescinded in
accordance with the terms of this Indenture. If payment of the Debentures is
accelerated because of an Event of Default, the Company or, at the Company's
request and expense, the Trustee shall promptly notify holders of Senior and
Senior Subordinated Indebtedness of the acceleration.

         In the event that, notwithstanding the foregoing provisions, any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities (including, without limitation, by way
of setoff or otherwise), prohibited by the foregoing provisions in this Section
4.02, shall be received by the Trustee or the holders of the Debentures before
all Senior and Senior Subordinated Indebtedness is paid in full in cash
(including interest after the commencement of any such proceeding at the rate
specified in the applicable debt agreement or other document, whether or not
allowed as a claim in such proceeding) or provision is made for such payment
thereof in accordance with its terms in cash (including interest after the
commencement of any such proceeding at the rate specified in the applicable debt
agreement or other document, whether or not allowed as a claim in such

                                       35

<PAGE>

proceeding), to the extent that the Trustee or any holder of the Debentures has
acquired written notice that all Senior and Senior Subordinated Indebtedness has
not been paid in full, such payment or distribution shall be held in trust for
the benefit of and shall be paid over or delivered to the holders of Senior and
Senior Subordinated Indebtedness or their Representative or Representatives, as
their respective interests may appear, as calculated by the Company, for
application to the payment of any Senior and Senior Subordinated Indebtedness
remaining unpaid to the extent necessary to pay all Senior and Senior
Subordinated Indebtedness in full in cash (including interest after the
commencement of any such proceeding at the rate specified in the applicable debt
agreement or other document, whether or not allowed as a claim in such
proceeding), after giving effect to any concurrent payment or distribution to or
for the holders of such Senior and Senior Subordinated Indebtedness.

         Nothing in this Article 4 shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 8.03 or Section 9.06. This Section 4.02
shall be subject to the further provisions of Section 4.05.

         Section 4.03. Subrogation of Debentures. Subject to the payment in full
in cash (including interest after the commencement of any such proceeding at the
rate specified in the applicable debt agreement or other document, whether or
not allowed as a claim in such proceeding) of all Senior and Senior Subordinated
Indebtedness, the rights of the holders of the Debentures shall be subrogated to
the extent of the payments or distributions made to the holders of such Senior
and Senior Subordinated Indebtedness pursuant to the provisions of this Article
4 (equally and ratably with the holders of all Indebtedness of the Company which
by its express terms is subordinated to Senior and Senior Subordinated
Indebtedness to the same extent as the Debentures are subordinated and is
entitled to like rights of subrogation) to the rights of the holders of Senior
and Senior Subordinated Indebtedness to receive payments or distributions of
cash, property or securities of the Company applicable to the Senior and Senior
Subordinated Indebtedness until the principal, premium, if any, and Interest on
the Debentures shall be paid in full, and, for the purposes of such subrogation,
no payments or distributions to the holders of the Senior and Senior
Subordinated Indebtedness of any cash, property or securities to which the
holders of the Debentures or the Trustee would be entitled except for the
provisions of this Article 4, and no payment pursuant to the provisions of this
Article 4, to or for the benefit of the holders of Senior and Senior
Subordinated Indebtedness by holders of the Debentures or the Trustee, shall, as
among the Company, its creditors other than holders of Senior and Senior
Subordinated Indebtedness, and the holders of the Debentures, be deemed to be a
payment by the Company to or on account of the Senior and Senior Subordinated
Indebtedness, and no payments or distributions of cash, property or securities
to or for the benefit of the holders of the Debentures

                                       36

<PAGE>

pursuant to the subrogation provisions of this Article 4, which would otherwise
have been paid to the holders of Senior and Senior Subordinated Indebtedness,
shall be deemed to be a payment by the Company to or for the account of the
Debentures. It is understood that the provisions of this Article 4 are intended
solely for the purposes of defining the relative rights of the holders of the
Debentures, on the one hand, and the holders of the Senior and Senior
Subordinated Indebtedness, on the other hand.

         Nothing contained in this Article 4 or elsewhere in this Indenture or
in the Debentures is intended to or shall impair, as among the Company, its
creditors other than the holders of Senior and Senior Subordinated Indebtedness,
and the holders of the Debentures, the obligation of the Company, which is
absolute and unconditional, to pay to the holders of the Debentures the
principal of, premium, if any, and Interest on the Debentures as and when the
same shall become due and payable in accordance with their terms, or is intended
to or shall affect the relative rights of the holders of the Debentures and
creditors of the Company other than the holders of the Senior and Senior
Subordinated Indebtedness, nor shall anything herein or therein prevent the
Trustee or, subject to Section 8.04, the holder of any Debenture from exercising
all remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this Article 4 of the holders of
Senior and Senior Subordinated Indebtedness in respect of cash, property or
securities of the Company received upon the exercise of any such remedy.

         Section 4.04. Authorization to Effect Subordination. Each holder of a
Debenture by the holder's acceptance thereof authorizes and directs the Trustee
on the holder's behalf to take such action as may be necessary or appropriate to
effectuate the subordination as provided in this Article 4 and appoints the
Trustee to act as the holder's attorney-in-fact for any and all such purposes.
If the Trustee does not file a proper proof of claim or proof of debt in the
form required in any proceeding referred to in the third paragraph of Section
8.02 hereof at least thirty (30) days before the expiration of the time to file
such claim, the holders of any Senior and Senior Subordinated Indebtedness or
their Representatives are hereby authorized to file an appropriate claim for and
on behalf of the holders of the Debentures.

         Section 4.05. Notice to Trustee. The Company shall give prompt written
notice in the form of an Officer's Certificate to a Responsible Officer of the
Trustee and to any Paying Agent of any fact known to the Company that would
prohibit the making of any payment of monies to or by the Trustee or any Paying
Agent in respect of the Debentures pursuant to the provisions of this Article 4.
Notwithstanding the provisions of this Article 4 or any other provision of this
Indenture, the Trustee shall not be charged with knowledge of the existence of
any facts that would prohibit the making of any payment of monies to or by the
Trustee in respect of the Debentures pursuant to the provisions of this Article
4, unless and until a Responsible Officer of the Trustee shall have received
written notice thereof at the Corporate Trust Office from the Company (in the
form of an

                                       37

<PAGE>

Officer's Certificate) or a Representative or a holder or holders of Senior and
Senior Subordinated Indebtedness, and before the receipt of any such written
notice, the Trustee, subject to the provisions of Section 9.01, shall be
entitled in all respects to assume that no such facts exist; provided, however,
that if on a date not less than two (2) Business Days prior to the date upon
which by the terms hereof any such monies may become payable for any purpose
(including, without limitation, the payment of the principal of, or premium, if
any, or Interest on any Debenture) the Trustee shall not have received, with
respect to such monies, the notice provided for in this Section 4.05, then,
anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority to apply monies received to the purpose for which
they were received, and shall not be affected by any notice to the contrary that
may be received by it on or after such prior date.

         Notwithstanding anything in this Article 4 to the contrary, nothing
shall prevent any payment by the Trustee to the Debentureholders of monies
deposited with it pursuant to Section 14.01, if a Responsible Officer of the
Trustee shall not have received written notice at the Corporate Trust Office on
or before two (2) Business Days prior to the date such payment is due that such
payment is not permitted under Section 4.01 or Section 4.02.

         The Trustee, subject to the provisions of Section 9.01, shall be
entitled to rely on the delivery to it of a written notice by a Representative
or a person representing himself to be a holder of Senior and Senior
Subordinated Indebtedness (or a trustee on behalf of such holder) to establish
that such notice has been given by a Representative or a holder of Senior and
Senior Subordinated Indebtedness or a trustee on behalf of any such holder or
holders. The Trustee shall not be required to make any payment or distribution
to or on behalf of a holder of Senior and Senior Subordinated Indebtedness
pursuant to this Article 4 unless it has received satisfactory evidence as to
the amount of Senior and Senior Subordinated Indebtedness held by such Person,
the extent to which such Person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such Person under
this Article 4.

         Section 4.06. Trustee's Relation to Senior and Senior Subordinated
Indebtedness. The Trustee, in its individual capacity, shall be entitled to all
the rights set forth in this Article 4 in respect of any Senior and Senior
Subordinated Indebtedness at any time held by it, to the same extent as any
other holder of Senior and Senior Subordinated Indebtedness, and nothing in
Section 9.13 or elsewhere in this Indenture shall deprive the Trustee of any of
its rights as such holder.

         With respect to the holders of Senior and Senior Subordinated
Indebtedness, the Trustee undertakes to perform or to observe only such of its
covenants and obligations as are specifically set forth in this Article 4, and
no implied covenants or obligations with respect to the holders of Senior and
Senior Subordinated Indebtedness shall be read into this Indenture against the
Trustee.

                                       38

<PAGE>

The Trustee shall not be deemed to owe any fiduciary duty to the holders of
Senior and Senior Subordinated Indebtedness and, subject to the provisions of
Section 9.01, the Trustee shall not be liable to any holder of Senior and Senior
Subordinated Indebtedness (i) for any failure to make any payments or
distributions to such holder or (ii) if it shall pay over or deliver money to
holders of Debentures, the Company or any other Person in compliance with this
Article 4.

         Section 4.07. No Impairment of Subordination. No right of any present
or future holder of any Senior and Senior Subordinated Indebtedness to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder, or by any noncompliance by
the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof which any such holder may have or otherwise
be charged with. Senior and Senior Subordinated Indebtedness may be created,
renewed or extended and holders of Senior and Senior Subordinated Indebtedness
may exercise any rights under any instrument creating or evidencing such Senior
and Senior Subordinated Indebtedness, including, without limitation, any waiver
of default thereunder, without any notice to or consent from the holders of the
Debentures or the Trustee. No compromise, alteration, amendment, modification,
extension, renewal or other change of, or waiver, consent or other action in
respect of, any liability or obligation under or in respect of the Senior and
Senior Subordinated Indebtedness or any terms or conditions of any instrument
creating or evidencing such Senior and Senior Subordinated Indebtedness shall in
any way alter or affect any of the provisions of this Article 4 or the
subordination of the Debentures provided thereby.

         Section 4.08. Certain Conversions Not Deemed Payment. For the purposes
of this Article 4 only, (1) the issuance and delivery of Junior Securities upon
conversion of Debentures in accordance with Article 16 and (2) the payment,
issuance or delivery of cash, property or securities upon conversion of a
Debenture as a result of any transaction specified in Section 16.06 shall not be
deemed to constitute a payment or distribution on account of the principal of,
premium, if any, or Interest on Debentures or on account of the purchase or
other acquisition of Debentures. For the purposes of this Section 4.08, the term
"JUNIOR SECURITIES" means (a) Common Stock of the Company or (b) securities of
the Company that are subordinated in right of payment to all Senior and Senior
Subordinated Indebtedness that may be outstanding at the time of issuance or
delivery of such securities to the same extent as, or to a greater extent than,
the Debentures are so subordinated as provided in this Article 4. Nothing
contained in this Article 4 or elsewhere in this Indenture or in the Debentures
is intended to or shall impair, as among the Company, its creditors (other than
holders of Senior and Senior Subordinated Indebtedness) and the
Debentureholders, the right, which is absolute and unconditional, of the Holder
of any Debenture to convert such Debenture in accordance with Article 16.

                                       39

<PAGE>

         Section 4.09. Article Applicable to Paying Agents. If at any time any
Paying Agent other than the Trustee shall have been appointed by the Company and
be then acting hereunder, the term "TRUSTEE" as used in this Article 4 shall
(unless the context otherwise requires) be construed as extending to and
including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article 4 in addition to or
in place of the Trustee; provided, however, that the first paragraph of Section
4.05 shall not apply to the Company or any Affiliate of the Company if it or
such Affiliate acts as Paying Agent.

         The Trustee shall not be responsible for the actions or inactions of
any other Paying Agents (including the Company if acting as its own Paying
Agent) and shall have no control of any funds held by such other Paying Agents.

         Section 4.10. Senior and Senior Subordinated Indebtedness Entitled to
Rely. The holders of Senior and Senior Subordinated Indebtedness (including,
without limitation, Designated Senior Indebtedness) shall have the right to rely
upon this Article 4, and no amendment or modification of the provisions
contained herein shall diminish the rights of such holders unless such holders
shall have agreed in writing thereto.

         Section 4.11. Reliance on Judicial Order or Certificate of Liquidating
Agent. Upon any payment or distribution of assets of the Company referred to in
this Article 4, the Trustee and the Debentureholders shall be entitled to rely
upon any order or decree entered by any court of competent jurisdiction in which
such insolvency, bankruptcy, receivership, liquidation, reorganization,
dissolution, winding up or similar case or proceeding is pending, or a
certificate of the trustee in bankruptcy, liquidating trustee, custodian,
receiver, assignee for the benefit of creditors, agent or other Person making
such payment or distribution, delivered to the Trustee or to the
Debentureholders, for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of Senior and Senior
Subordinated Indebtedness and other indebtedness of the Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article 4.

                                   ARTICLE 5
                       DEFERRAL OF INTEREST PAYMENT PERIOD

         Section 5.01. Extended Interest Payment Period. So long as the Company
is not in default in the payment of Interest on the Debentures, and so long as
the Designated Agreement Termination Date has occurred, the Company shall have
the right, at any time during the term of the Debentures, from time to time to
extend any interest payment period with respect to such Debentures for up to 20
consecutive quarterly interest periods (an "EXTENDED INTEREST PAYMENT PERIOD"),
at the end of which period the Company shall pay all Interest accrued

                                       40

<PAGE>

and unpaid thereon (together with interest thereon at the rate of 5.50% per
annum to the extent permitted by applicable law, compounded quarterly
("COMPOUNDED INTEREST")); provided that no Extended Interest Payment Period may
extend beyond the Maturity Date or Redemption Date of the Debentures or end on a
day other than an Interest Payment Date. Prior to the termination of any such
Extended Interest Payment Period, the Company may pay all or any portion of the
Interest accrued on the Debentures on any Interest Payment Date to holders of
record on the regular Record Date for such Interest Payment Date or from time to
time further extend such Period; provided that such Extended Interest Payment
Period, including such extension and all such further extensions thereof, shall
not exceed 20 consecutive quarterly interest periods. Upon the termination of
any Extended Interest Payment Period and upon the payment of all accrued and
unpaid Interest then due, together with Compounded Interest, the Company may
select a new Extended Interest Payment Period, subject to the foregoing
requirements. No Interest shall be due and payable during an Extended Interest
Payment Period, except at the end thereof. At the end of the Extended Interest
Payment Period, the Company shall pay all Interest accrued and unpaid on the
Debentures including any Compounded Interest which shall be payable to the
holders of the Debentures in whose names the Debentures are registered in the
Debenture Register on the first Record Date prior to the end of the Extended
Interest Payment Period.

         Section 5.02. Notification of Deferral of Interest Payment Periods. The
Company shall, or shall cause the Trustee to, give the holders of the Debentures
written notice of its selection of an Extended Interest Payment Period at least
5 Business Days prior to the earlier of the Record Date with respect to the next
succeeding Interest Payment Date or the date the Company is required to give
notice of the record or payment date of such interest payment to any national
stock exchange or other self-regulatory organization on which the Debentures are
listed or quoted or to holders of the Debentures. The quarter in which any
notice is given pursuant to this Section 5.02 shall be counted as one of the
quarters permitted in the maximum Extended Interest Payment Period permitted
under this Article 5. If the Company shall give such notice, the Company shall
also deliver a copy of such notice to the Trustee at such time as it is mailed
to Debentureholders.

                                   ARTICLE 6
                       PARTICULAR COVENANTS OF THE COMPANY

         Section 6.01. Payment of Principal, Premium and Interest. The Company
covenants and agrees that it will duly and punctually pay or cause to be paid
the principal of and premium, if any (including, but not limited to, the
Redemption Price with respect to Debentures called for redemption in accordance
with Section 3.02 or Repurchase Price with respect to Debentures submitted for
repurchase in accordance with Section 3.05), and Interest, on each of the
Debentures at the

                                       41

<PAGE>

places, at the respective times and in the manner provided herein and in the
Debentures.

         Section 6.02. Maintenance of Office or Agency. The Company will
maintain an office or agency in the Borough of Manhattan, the City of New York,
where the Debentures may be surrendered for registration of transfer or exchange
or for presentation for payment or for conversion, redemption or repurchase and
where notices and demands to or upon the Company in respect of the Debentures
and this Indenture may be served. The Company will give prompt written notice to
the Trustee of the location, and any change in the location, of such office or
agency not designated or appointed by the Trustee. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office.

         The Company may also from time to time designate co-registrars and one
or more offices or agencies where the Debentures may be presented or surrendered
for any or all such purposes and may from time to time rescind such
designations. The Company will give prompt written notice of any such
designation or rescission and of any change in the location of any such other
office or agency.

         The Company hereby initially designates the Trustee as Paying Agent,
Debenture Registrar, Custodian and Conversion Agent and each of the Corporate
Trust Office and the office of agency of the Trustee in The Borough of
Manhattan, shall be considered as one such office or agency of the Company for
each of the aforesaid purposes.

         So long as the Trustee is the Debenture Registrar, the Trustee agrees
to mail, or cause to be mailed, the notices set forth in Section 9.10(a) and the
third paragraph of Section 9.11. If co-registrars have been appointed in
accordance with this Section, the Trustee shall mail such notices only to the
Company and the holders of Debentures it can identify from its records.

         Section 6.03. Appointments to Fill Vacancies in Trustee's Office. The
Company, whenever necessary to avoid or fill a vacancy in the office of Trustee,
will appoint, in the manner provided in Section 9.10, a Trustee, so that there
shall at all times be a Trustee hereunder.

         Section 6.04. Provisions as to Paying Agent. If the Company shall
appoint a Paying Agent other than the Trustee, or if the Trustee shall appoint
such a Paying Agent, the Company will cause such Paying Agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provisions of this Section 6.04:

                  (1)      that it will hold all sums held by it as such agent
         for the payment of the principal of and premium, if any, or Interest on
         the

                                       42

<PAGE>

         Debentures (whether such sums have been paid to it by the Company or by
         any other obligor on the Debentures) in trust for the benefit of the
         holders of the Debentures;

                  (2)      that it will give the Trustee notice of any failure
         by the Company (or by any other obligor on the Debentures) to make any
         payment of the principal of and premium, if any, or Interest on the
         Debentures when the same shall be due and payable; and

                  (3)      that at any time during the continuance of an Event
         of Default, upon request of the Trustee, it will forthwith pay to the
         Trustee all sums so held in trust.

         The Company shall, on or before each due date of the principal of,
premium, if any, or Interest on the Debentures, deposit with the Paying Agent a
sum (in funds which are immediately available on the due date for such payment)
sufficient to pay such principal, premium, if any, or Interest, and (unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of any
failure to take such action; provided that if such deposit is made on the due
date, such deposit shall be received by the Paying Agent by 11:00 a.m., New York
City time, on such date.

         (a)      If the Company shall act as its own Paying Agent, it will, on
or before each due date of the principal of, premium, if any, or Interest on the
Debentures, set aside, segregate and hold in trust for the benefit of the
holders of the Debentures a sum sufficient to pay such principal, premium, if
any, or Interest so becoming due and will promptly notify the Trustee of any
failure to take such action and of any failure by the Company (or any other
obligor under the Debentures) to make any payment of the principal of, premium,
if any, or Interest on the Debentures when the same shall become due and
payable.

         (b)      Anything in this Section 6.04 to the contrary notwithstanding,
the Company may, at any time, for the purpose of obtaining a satisfaction and
discharge of this Indenture, or for any other reason, pay or cause to be paid to
the Trustee all sums held in trust by the Company or any Paying Agent hereunder
as required by this Section 6.04, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company or any Paying Agent
to the Trustee, the Company or such Paying Agent shall be released from all
further liability with respect to such sums.

         (c)      Anything in this Section 6.04 to the contrary notwithstanding,
the agreement to hold sums in trust as provided in this Section 6.04 is subject
to Sections 14.03 and 14.04.

         The Trustee shall not be responsible for the actions of any other
Paying Agent (including the Company if acting as its own Paying Agent) and shall
have no control of any funds held by such other Paying Agents.

                                       43

<PAGE>

         Section 6.05. Existence. Subject to Article 13, the Company will do or
cause to be done all things necessary to preserve and keep in full force and
effect its existence and rights (charter and statutory); provided that the
Company shall not be required to preserve any such right if the Company shall
determine that the preservation thereof is no longer desirable in the conduct of
the business of the Company and that the loss thereof is not disadvantageous in
any material respect to the Debentureholders.

         Section 6.06. Rule 144A Information Requirement. Within the period
prior to the expiration of the holding period applicable to sales thereof under
Rule 144(k) under the Securities Act (or any successor provision), the Company
covenants and agrees that it shall, during any period in which it is not subject
to Section 13 or 15(d) under the Exchange Act, make available to any holder or
beneficial holder of Debentures or any Common Stock issued upon conversion
thereof which continue to be Restricted Securities in connection with any sale
thereof and any prospective purchaser of Debentures or such Common Stock
designated by such holder or beneficial holder, the information required
pursuant to Rule 144A(d)(4) under the Securities Act upon the request of any
holder or beneficial holder of the Debentures or such Common Stock and it will
take such further action as any holder or beneficial holder of such Debentures
or such Common Stock may reasonably request, all to the extent required from
time to time to enable such holder or beneficial holder to sell its Debentures
or Common Stock without registration under the Securities Act within the
limitation of the exemption provided by Rule 144A, as such Rule may be amended
from time to time. Upon the request of any holder or any beneficial holder of
the Debentures or such Common Stock, the Company will deliver to such holder a
written statement as to whether it has complied with such requirements.

         Section 6.07. Stay, Extension and Usury Laws. The Company covenants (to
the extent that it may lawfully do so) that it shall not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay, extension or usury law or other law which would prohibit or
forgive the Company from paying all or any portion of the principal of, premium,
if any, or Interest on the Debentures as contemplated herein, wherever enacted,
now or at any time hereafter in force, or which may affect the covenants or the
performance of this Indenture and the Company (to the extent it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not, by resort to any such law, hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

         Section 6.08. Compliance Certificate. The Company shall deliver to the
Trustee, within one hundred twenty (120) days after the end of each fiscal year
of the Company (which fiscal year of the Company is presently the twelve
calendar months ending December 31), a certificate signed by either the
principal executive officer, principal financial officer or principal accounting
officer of the Company, stating whether or not to the best knowledge of the
signer thereof the

                                       44

<PAGE>

Company is in default in the performance and observance of any of the terms,
provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company shall be
in default, specifying all such defaults and the nature and the status thereof
of which the signer may have knowledge.

         The Company will deliver to the Trustee, promptly upon becoming aware
of (i) any default in the performance or observance of any covenant, agreement
or condition contained in this Indenture, or (ii) any Event of Default, an
Officer's Certificate specifying with particularity such default or Event of
Default and further stating what action the Company has taken, is taking or
proposes to take with respect thereto.

         Any notice required to be given under this Section 6.08 shall be
delivered to a Responsible Officer of the Trustee at its Corporate Trust Office.

         Section 6.09. Liquidated Damages Notice. In the event that the Company
is required to pay Liquidated Damages to holders of Debentures pursuant to the
Registration Rights Agreement, the Company will provide written notice
("LIQUIDATED DAMAGES NOTICE") to the Trustee of its obligation to pay Liquidated
Damages no later than fifteen (15) days prior to the proposed payment date for
the Liquidated Damages, and the Liquidated Damages Notice shall set forth the
amount of Liquidated Damages to be paid by the Company on such payment date. The
Trustee shall not at any time be under any duty or responsibility to any holder
of Debentures to determine the Liquidated Damages, or with respect to the
nature, extent or calculation of the amount of Liquidated Damages when made, or
with respect to the method employed in such calculation of the Liquidated
Damages.

         Section 6.10. Tax Treatment. The Company agrees and, by acceptance of a
Debenture, each beneficial holder of a Debenture will covenant to treat the
Debentures as indebtedness of the Company for U.S. federal income tax purposes.

         Section 6.11. Restrictions on Certain Payments. The Company agrees that
if (i) an event has occurred that with the giving of notice or the lapse of
time, or both, would constitute an Event of Default and the Company has not
taken commercially reasonable steps to cure the event (a "POTENTIAL EVENT OF
DEFAULT") or (ii) the Company has given notice of its intention to begin an
Extended Interest Payment Period pursuant to Section 5.02 and has not rescinded
the notice or any Extended Interest Payment Period is continuing, then the
Company will not and will not permit any of its Subsidiaries to do any of the
following (each, a "RESTRICTED PAYMENT"):

         (a)      declare or pay any dividends on, make distributions regarding,
or redeem, purchase, acquire or make any liquidation payment with respect to,
any of the capital stock of the Company, other than:

                                       45

<PAGE>

                  (i)      purchases of the capital stock of the Company in
         connection with employee or agent benefit plans or under any dividend
         reinvestment plan;

                  (ii)     in connection with the reclassifications of any class
         or series of the Company's capital stock, or the exchange or conversion
         of one class or series of the Company's capital stock for or into
         another class or series of its capital stock;

                  (iii)    the purchase of fractional interests in shares of the
         Company's capital stock in connection with the conversion or exchange
         provisions of that capital stock or the security being converted or
         exchanged;

                  (iv)     dividends or distributions in the Company's capital
         stock, or options, warrants or rights to acquire capital stock, or
         repurchases or redemptions of capital stock solely from the issuance or
         exchange of capital stock;

                  (v)      any declaration of a dividend in connection with the
         implementation of a shareholders' rights plan, or issuances of stock
         under any such plan in the future, or redemptions or repurchases of any
         such rights pursuant to any such shareholders' rights plan; or

                  (vi)     repurchases of Common Stock in connection with
         acquisitions of businesses made by the Company or any of its
         Subsidiaries (which repurchases are made in connection with the
         satisfaction of indemnification obligations of the sellers of such
         businesses);

         (b)      make any payment of interest, principal or premium, if any, on
or repay, repurchase or redeem any debt securities (including other convertible
debentures) issued by the Company that rank equally with or junior to the
Debentures; or

         (c)      make any guarantee payments with respect to any Guarantee by
the Company of the debt securities (including other Guarantees) of any of its
Subsidiaries, if such Guarantee ranks equally with or junior in interest to the
Debentures;

provided that the limitation described in clause (a) above will not apply when a
Potential Event of Default is occurring until such time as each of the
Designated Agreements has been replaced, retired or otherwise terminated or has
been duly amended so that such Designated Agreement does not limit the Company's
ability to agree not to make the payments described in clause (a) above (the
first date on which all of the Designated Agreements has been so replaced,
retired, terminated or amended, the "DESIGNATED AGREEMENT TERMINATION DATE").

                                       46

<PAGE>

         Notwithstanding the foregoing, Restricted Payments shall not include
payments or distributions of any kind made by the Company, directly or
indirectly, to Williams Gas Pipeline Company, LLC or any of its direct or
indirect Subsidiaries, or to any successor company established by the Company to
own or manage its natural gas pipelines and related assets, or any of such
successor company's direct or indirect Subsidiaries.

         Section 6.12. Termination of Designated Agreements. The Company agrees
to use its commercially reasonable efforts to cause each of the Designated
Agreements to be replaced, retired or otherwise terminated or to be amended so
that such Designated Agreement does not limit the Company's ability to agree not
to make the payments described in clause (a) of Section 6.11 within 90 days
after the date of this Indenture.

                                   ARTICLE 7
       DEBENTUREHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

         Section 7.01. Debentureholders' Lists. The Company covenants and agrees
that it will furnish or cause to be furnished to the Trustee, semiannually, not
more than fifteen (15) days after each June 1 and December 1 in each year
beginning with December 1, 2003, and at such other times as the Trustee may
request in writing, within thirty (30) days after receipt by the Company of any
such request (or such lesser time as the Trustee may reasonably request in order
to enable it to timely provide any notice to be provided by it hereunder), a
list in such form as the Trustee may reasonably require of the names and
addresses of the holders of Debentures as of a date not more than fifteen (15)
days (or such other date as the Trustee may reasonably request in order to so
provide any such notices) prior to the time such information is furnished,
except that no such list need be furnished by the Company to the Trustee so long
as the Trustee is acting as the sole Debenture Registrar.

         Section 7.02. Preservation and Disclosure of Lists. The Trustee shall
preserve, in as current a form as is reasonably practicable, all information as
to the names and addresses of the holders of Debentures contained in the most
recent list furnished to it as provided in Section 7.01 or maintained by the
Trustee in its capacity as Debenture Registrar or co-registrar in respect of the
Debentures, if so acting. The Trustee may destroy any list furnished to it as
provided in Section 7.01 upon receipt of a new list so furnished.

         (a)      The rights of Debentureholders to communicate with other
holders of Debentures with respect to their rights under this Indenture or under
the Debentures, and the corresponding rights and duties of the Trustee, shall be
as provided by the Trust Indenture Act.

         (b)      Every Debentureholder, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
nor

                                       47
<PAGE>

any agent of either of them shall be held accountable by reason of any
disclosure of information as to names and addresses of holders of Debentures
made pursuant to the Trust Indenture Act.

         Section 7.03. Reports by Trustee. Within sixty (60) days after December
15 of each year commencing with the year 2003, the Trustee shall transmit to
holders of Debentures such reports dated as of December 15 of the year in which
such reports are made concerning the Trustee and its actions under this
Indenture as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto.

         (a)      A copy of such report shall, at the time of such transmission
to holders of Debentures, be filed by the Trustee with each stock exchange and
automated quotation system upon which the Debentures are listed, with the
Securities and Exchange Commission and with the Company. The Company will
promptly notify the Trustee in writing when the Debentures are listed on any
stock exchange or automated quotation system or delisted therefrom.

         Section 7.04. Reports by Company. The Company shall file with the
Trustee (and the Commission if at any time after the Indenture becomes qualified
under the Trust Indenture Act), and transmit to holders of Debentures, such
information, documents and other reports and such summaries thereof, as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant to such Act, whether or not the Debentures are governed by
such Act; provided that any such information, documents or reports required to
be filed with the Commission pursuant to Section 13 or 15(d) of the Exchange Act
shall be filed with the Trustee within fifteen (15) days after the same is so
required to be filed with the Commission. Delivery of such reports, information
and documents to the Trustee is for informational purposes only and the
Trustee's receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company's compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officer's
Certificates).

                                    ARTICLE 8
       REMEDIES OF THE TRUSTEE AND DEBENTUREHOLDERS ON AN EVENT OF DEFAULT

         Section 8.01. Events of Default. In case one or more of the following
events (each an "EVENT OF DEFAULT") (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body) shall
have occurred and be continuing:

         (a)      default in the payment of any installment of Interest upon any
of the Debentures as and when the same shall become due and payable, and
continuance

                                       48

<PAGE>

of such default for a period of thirty (30) days, whether or not the payment is
prohibited by the provisions of Article 4 hereof, provided that a valid
extension of the interest payment period by the Company pursuant to Article 5
shall not constitute an Event of Default; or

         (b)      default in the payment of the principal of or premium, if any,
on any of the Debentures as and when the same shall become due and payable
either at maturity or in connection with any redemption, repurchase or
otherwise, in each case pursuant to Article 3, by acceleration or otherwise,
whether or not the payment is prohibited by the provisions of Article 4 hereof;
or

         (c)      default in the Company's obligation to convert the Debentures
into Common Stock upon the exercise of a holder's rights pursuant to Article 16;
or

         (d)      default in the Company's obligation to repurchase the
Debentures at the option of a holder upon a Change of Control pursuant to
Section 3.05, whether or not the payment is prohibited by the provisions of
Article 4 hereof; or

         (e)      failure to provide notice of the occurrence of a Change of
Control on a timely basis as required by Section 3.05; or

         (f)      default in Williams' obligation to redeem the convertible
debentures after it has exercised its option to redeem, whether or not the
payment is prohibited by the provisions of Article 4 hereof; or

         (g)      failure on the part of the Company duly to observe or perform
any other of the covenants or agreements on the part of the Company in the
Debentures or in this Indenture (other than a covenant or agreement a default in
whose performance or whose breach is elsewhere in this Section 8.01 specifically
dealt with) continued for a period of ninety (90) days after the date on which
written notice of such failure, requiring the Company to remedy the same, shall
have been given to the Company by the Trustee, or the Company and a Responsible
Officer of the Trustee by the holders of at least twenty-five percent (25%) in
aggregate principal amount of the Debentures at the time outstanding determined
in accordance with Section 10.04; or

         (h)      failure to pay at final stated maturity (giving effect to any
applicable grace periods and any extensions thereof) the principal amount of any
Junior Subordinated Indebtedness of the Company or the acceleration of the final
stated maturity of any such Junior Subordinated Indebtedness (which acceleration
is not rescinded, annulled or otherwise cured within 90 days of receipt by the
Company of notice from the holders thereof of any such acceleration) if the
aggregate principal amount of such Junior Subordinated Indebtedness, together
with the principal amount of any other Junior Subordinated Indebtedness of the
Company that is in default for failure to pay principal at final stated maturity
or which has been accelerated (in each case with respect to which the 90-day
period described above has elapsed), aggregates $250 million or more at any
time; or

                                       49

<PAGE>

         (i)      the Company shall commence a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to
the Company or its debts under any bankruptcy, insolvency or other similar law
now or hereafter in effect or seeking the appointment of a trustee, receiver,
liquidator, custodian or other similar official of the Company or any
substantial part of the property of the Company, or shall consent to any such
relief or to the appointment of or taking possession by any such official in an
involuntary case or other proceeding commenced against the Company, or shall
make a general assignment for the benefit of creditors, or shall fail generally
to pay its debts as they become due; or

         (j)      an involuntary case or other proceeding shall be commenced
against the Company seeking liquidation, reorganization or other relief with
respect to the Company or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of the Company or any
substantial part of the property of the Company, and such involuntary case or
other proceeding shall remain undismissed and unstayed for a period of sixty
(60) consecutive days;

then, and in each and every such case (other than an Event of Default specified
in Section 8.01(i) or 8.01(j)), unless the principal of all of the Debentures
shall have already become due and payable, either the Trustee or the holders of
not less than twenty-five percent (25%) in aggregate principal amount of the
Debentures then outstanding hereunder determined in accordance with Section
10.04, by notice in writing to the Company (and to the Trustee if given by
Debentureholders), may declare the principal of and premium, if any, on all the
Debentures and the Interest accrued thereon to be due and payable immediately,
and upon any such declaration the same shall become and shall be immediately due
and payable, anything in this Indenture or in the Debentures contained to the
contrary notwithstanding. If an Event of Default specified in Section 8.01(i) or
8.01(j) occurs, the principal of all the Debentures and the Interest accrued
thereon shall be immediately and automatically due and payable without necessity
of further action. This provision, however, is subject to the conditions that
if, at any time after the principal of the Debentures shall have been so
declared due and payable, and before any judgment or decree for the payment of
the monies due shall have been obtained or entered as hereinafter provided, the
Company shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments of Interest upon all Debentures and the principal of and
premium, if any, on any and all Debentures which shall have become due otherwise
than by acceleration (with interest on overdue installments of Interest (to the
extent that payment of such interest is enforceable under applicable law) and on
such principal and premium, if any, at the rate borne by the Debentures, to the
date of such payment or deposit) and amounts due to the Trustee pursuant to
Section 9.06, and if any and all defaults under this Indenture, other than the
nonpayment of principal of and premium, if any, and accrued Interest on
Debentures which shall have become due by acceleration, shall have been cured or
waived pursuant to Section 8.07, then and in every such case the holders of a
majority in aggregate principal

                                       50

<PAGE>

amount of the Debentures then outstanding, by written notice to the Company and
to the Trustee, may waive all defaults or Events of Default and rescind and
annul such declaration and its consequences; but no such waiver or rescission
and annulment shall extend to or shall affect any subsequent default or Event of
Default, or shall impair any right consequent thereon. The Company shall notify
in writing a Responsible Officer of the Trustee, promptly upon becoming aware
thereof, of any Event of Default.

         In case the Trustee shall have proceeded to enforce any right under
this Indenture and such proceedings shall have been discontinued or abandoned
because of such waiver or rescission and annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such case
the Company, the holders of Debentures, and the Trustee shall be restored
respectively to their several positions and rights hereunder, and all rights,
remedies and powers of the Company, the holders of Debentures, and the Trustee
shall continue as though no such proceeding had been taken.

         Section 8.02. Payments of Debentures on Default; Suit Therefor. The
Company covenants that in case default shall be made in the payment of any
installment of Interest upon any of the Debentures as and when the same shall
become due and payable, and such default shall have continued for a period of
thirty (30) days, or in case default shall be made in the payment of the
principal of or premium, if any, on any of the Debentures as and when the same
shall have become due and payable, whether at maturity of the Debentures or in
connection with any redemption, repurchase, acceleration, declaration or
otherwise, then, upon demand of the Trustee, the Company will pay to the
Trustee, for the benefit of the holders of the Debentures, the whole amount that
then shall have become due and payable on all such Debentures for principal and
premium, if any, or Interest, as the case may be, with interest upon the overdue
principal and premium, if any, and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, including
reasonable compensation to the Trustee, its agents, attorneys and counsel, and
all other amounts due the Trustee under Section 9.06. Until such demand by the
Trustee, the Company may pay the principal of and premium, if any, and Interest
on the Debentures to the registered holders, whether or not the Debentures are
overdue.

         In case the Company shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor on the
Debentures and collect in the manner provided by law out of the property of the
Company or any other obligor on the Debentures wherever situated the monies
adjudged or decreed to be payable.

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<PAGE>

         In case there shall be pending proceedings for the bankruptcy or for
the reorganization of the Company or any other obligor on the Debentures under
Title 11 of the United States Code, or any other applicable law, or in case a
receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
sequestrator or similar official shall have been appointed for or taken
possession of the Company or such other obligor, the property of the Company or
such other obligor, or in the case of any other judicial proceedings relative to
the Company or such other obligor upon the Debentures, or to the creditors or
property of the Company or such other obligor, the Trustee, irrespective of
whether the principal of the Debentures shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand pursuant to the provisions of this Section 8.02,
shall be entitled and empowered, by intervention in such proceedings or
otherwise, to file and prove a claim or claims for the whole amount of
principal, premium, if any, and Interest owing and unpaid in respect of the
Debentures, and, in case of any judicial proceedings, to file such proofs of
claim and other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee and of the Debentureholders allowed in such
judicial proceedings relative to the Company or any other obligor on the
Debentures, its or their creditors, or its or their property, and to collect and
receive any monies or other property payable or deliverable on any such claims,
and to distribute the same after the deduction of any amounts due the Trustee
under Section 9.06, and any receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian or similar official is hereby authorized
by each of the Debentureholders to make such payments to the Trustee, and, in
the event that the Trustee shall consent to the making of such payments directly
to the Debentureholders, to pay to the Trustee any amount due it for reasonable
compensation, expenses, advances and disbursements, including counsel fees and
expenses incurred by it up to the date of such distribution. To the extent that
such payment of reasonable compensation, expenses, advances and disbursements
out of the estate in any such proceedings shall be denied for any reason,
payment of the same shall be secured by a lien on, and shall be paid out of, any
and all distributions, dividends, monies, securities and other property which
the holders of the Debentures may be entitled to receive in such proceedings,
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.

         All rights of action and of asserting claims under this Indenture, or
under any of the Debentures, may be enforced by the Trustee without the
possession of any of the Debentures, or the production thereof at any trial or
other proceeding relative thereto, and any such suit or proceeding instituted by
the Trustee shall be brought in its own name as trustee of an express trust, and
any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the holders of the
Debentures.

         In any proceedings brought by the Trustee (and in any proceedings
involving the interpretation of any provision of this Indenture to which the

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<PAGE>

Trustee shall be a party) the Trustee shall be held to represent all the holders
of the Debentures, and it shall not be necessary to make any holders of the
Debentures parties to any such proceedings.

         Section 8.03. Application of Monies. Any monies collected by the
Trustee pursuant to this Article 8 and, after an Event of Default, any other
money or other property distributable in respect of the Company's obligations
under this Indenture shall be applied in the order following, at the date or
dates fixed by the Trustee for the distribution of such monies, upon
presentation of the several Debentures, and stamping thereon the payment, if
only partially paid, and upon surrender thereof, if fully paid:

         FIRST: To the Trustee (including any predecessor Trustee) for the
payment of all amounts due under Section 9.06;

         SECOND: In case the principal of the outstanding Debentures shall not
have become due and be unpaid, subject to the provisions of Article 4, to the
payment of Interest on the Debentures in default in the order of the maturity of
the installments of such Interest, with interest (to the extent that such
interest has been collected by the Trustee) upon the overdue installments of
Interest at the rate borne by the Debentures, such payments to be made ratably
to the Persons entitled thereto;

         THIRD: In case the principal of the outstanding Debentures shall have
become due, by declaration or otherwise, and be unpaid, subject to the
provisions of Article 4, to the payment of the whole amount then owing and
unpaid upon the Debentures for principal and premium, if any, and Interest, with
interest on the overdue principal and premium, if any, and (to the extent that
such interest has been collected by the Trustee) upon overdue installments of
Interest at the rate borne by the Debentures, and in case such monies shall be
insufficient to pay in full the whole amounts so due and unpaid upon the
Debentures, then to the payment of such principal and premium, if any, and
Interest without preference or priority of principal and premium, if any, over
Interest, or of Interest over principal and premium, if any, or of any
installment of Interest over any other installment of Interest, or of any
Debenture over any other Debenture, ratably to the aggregate of such principal
and premium, if any, and accrued and unpaid Interest; and

         FOURTH: To the payment of the remainder, if any, to the Company or any
other Person lawfully entitled thereto.

         Section 8.04. Proceedings by Debentureholder. No holder of any
Debenture shall have any right by virtue of or by reference to any provision of
this Indenture to institute any suit, action or proceeding in equity or at law
upon or under or with respect to this Indenture, or for the appointment of a
receiver, trustee, liquidator, custodian or other similar official, or for any
other remedy hereunder, unless such holder previously shall have given to the
Trustee written

                                       53

<PAGE>

notice of an Event of Default and of the continuance thereof, as hereinbefore
provided, and unless also the holders of not less than twenty-five percent (25%)
in aggregate principal amount of the Debentures then outstanding shall have made
written request upon the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable security or indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee for sixty
(60) days after its receipt of such notice, request and offer of indemnity,
shall have neglected or refused to institute any such action, suit or proceeding
and no direction inconsistent with such written request shall have been given to
the Trustee pursuant to Section 8.07; it being understood and intended, and
being expressly covenanted by the taker and holder of every Debenture with every
other taker and holder and the Trustee, that no one or more holders of
Debentures shall have any right in any manner whatever by virtue of or by
reference to any provision of this Indenture to affect, disturb or prejudice the
rights of any other holder of Debentures, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Debentures (except as otherwise
provided herein). For the protection and enforcement of this Section 8.04, each
and every Debentureholder and the Trustee shall be entitled to such relief as
can be given either at law or in equity.

         Notwithstanding any other provision of this Indenture and any provision
of any Debenture, the right of any holder of any Debenture to receive payment of
the principal of and premium, if any (including, but not limited to, the
Redemption Price with respect to Debentures called for redemption in accordance
with Section 3.02 or Repurchase Price with respect to Debentures submitted for
repurchase in accordance with Section 3.05), and accrued Interest on such
Debenture, on or after the respective due dates expressed in such Debenture or
in the event of redemption, or to institute suit for the enforcement of any such
payment on or after such respective dates against the Company shall not be
impaired or affected without the consent of such holder.

         Anything in this Indenture or the Debentures to the contrary
notwithstanding, the holder of any Debenture, without the consent of either the
Trustee or the holder of any other Debenture, in its own behalf and for its own
benefit, may enforce, and may institute and maintain any proceeding suitable to
enforce, its rights of conversion as provided herein.

         Section 8.05. Proceedings by Trustee. In case of an Event of Default,
the Trustee may, in its discretion, proceed to protect and enforce the rights
vested in it by this Indenture by such appropriate judicial proceedings as are
necessary to protect and enforce any of such rights, either by suit in equity or
by action at law or by proceeding in bankruptcy or otherwise, whether for the
specific enforcement of any covenant or agreement contained in this Indenture or
in aid of the exercise of any power granted in this Indenture, or to enforce any
other legal or equitable right vested in the Trustee by this Indenture or by
law.

                                       54

<PAGE>

         Section 8.06. Remedies Cumulative and Continuing. Except as provided in
Section 2.06, all powers and remedies given by this Article 8 to the Trustee or
to the Debentureholders shall, to the extent permitted by law, be deemed
cumulative and not exclusive of any thereof or of any other powers and remedies
available to the Trustee or the holders of the Debentures, by judicial
proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in this Indenture, and no delay or omission
of the Trustee or of any holder of any of the Debentures to exercise any right
or power accruing upon any default or Event of Default occurring and continuing
as aforesaid shall impair any such right or power, or shall be construed to be a
waiver of any such default or any acquiescence therein, and, subject to the
provisions of Section 8.04, every power and remedy given by this Article 8 or by
law to the Trustee or to the Debentureholders may be exercised from time to
time, and as often as shall be deemed expedient, by the Trustee or by the
Debentureholders.

         Section 8.07. Direction of Proceedings and Waiver of Defaults by
Majority of Debentureholders. The holders of a majority in aggregate principal
amount of the Debentures at the time outstanding determined in accordance with
Section 10.04 shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee; provided that (a) such direction
shall not be in conflict with any rule of law or with this Indenture or would
involve the Trustee in personal liability or expense, (b) the Trustee may take
any other action which is not inconsistent with such direction and (c) the
Trustee may decline to take any action that would benefit some Debentureholder
to the detriment of other Debentureholders. The holders of a majority in
aggregate principal amount of the Debentures at the time outstanding determined
in accordance with Section 10.04 may, on behalf of the holders of all of the
Debentures, waive any past default or Event of Default hereunder and its
consequences except (i) a default in the payment of Interest or premium, if any,
on, or the principal of, the Debentures, (ii) a failure by the Company to
convert any Debentures into Common Stock, (iii) a default in the payment of the
Redemption Price pursuant to Article 3, (iv) a default in the payment of the
Repurchase Price pursuant to Article 3 or (v) a default in respect of a covenant
or provisions hereof which under Article 12 cannot be modified or amended
without the consent of the holders of each or all Debentures then outstanding or
affected thereby. Upon any such waiver, the Company, the Trustee and the holders
of the Debentures shall be restored to their former positions and rights
hereunder; but no such waiver shall extend to any subsequent or other default or
Event of Default or impair any right consequent thereon. Whenever any default or
Event of Default hereunder shall have been waived as permitted by this Section
8.07, said default or Event of Default shall for all purposes of the Debentures
and this Indenture be deemed to have been cured and to be not continuing; but no
such waiver shall extend to any subsequent or other default or Event of Default
or impair any right consequent thereon.

                                       55

<PAGE>

         Section 8.08. Notice of Defaults. The Trustee shall, within ninety (90)
days after a Responsible Officer of the Trustee has knowledge of the occurrence
of a default, mail to all Debentureholders, as the names and addresses of such
holders appear upon the Debenture Register, notice of all defaults known to a
Responsible Officer, unless such defaults shall have been cured or waived before
the giving of such notice; provided that except in the case of default in the
payment of the principal of, or premium, if any, or Interest on any of the
Debentures, the Trustee shall be protected in withholding such notice if and so
long as a trust committee of directors and/or Responsible Officers of the
Trustee in good faith determines that the withholding of such notice is in the
interests of the Debentureholders. For the purpose of this Section 8.08, the
term "default" means any event which is, or after notice or lapse of time or
both would become, an Event of Default.

         Section 8.09. Undertaking to Pay Costs. All parties to this Indenture
agree, and each holder of any Debenture by his acceptance thereof shall be
deemed to have agreed, that any court may, in its discretion, require, in any
suit for the enforcement of any right or remedy under this Indenture, or in any
suit against the Trustee for any action taken or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of
such suit and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees and expenses, against any party litigant in
such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; provided that the provisions of this
Section 8.09 (to the extent permitted by law) shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Debentureholder, or
group of Debentureholders, holding in the aggregate more than ten percent in
principal amount of the Debentures at the time outstanding determined in
accordance with Section 10.04, or to any suit instituted by any Debentureholder
for the enforcement of the payment of the principal of or premium, if any, or
Interest on any Debenture on or after the due date expressed in such Debenture
or to any suit for the enforcement of the right to convert any Debenture in
accordance with the provisions of Article 16.

                                    ARTICLE 9
                                   THE TRUSTEE

         Section 9.01. Duties and Responsibilities of Trustee. The Trustee,
prior to the occurrence of an Event of Default and after the curing of all
Events of Default which may have occurred, undertakes to perform such duties and
only such duties as are specifically set forth in this Indenture and no implied
covenants or obligations shall be read into this Indenture against the Trustee,
and in the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but, in the case
of any such certificates or opinions

                                       56

<PAGE>

which by any provisions hereof are specifically required to be furnished to the
Trustee, the Trustee shall be under a duty to examine the same to determine
whether or not they conform to the requirements of this Indenture. In case an
Event of Default has occurred (which has not been cured or waived), the Trustee
shall exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of his own affairs.

         No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct, except that:

         (a)      prior to the occurrence of an Event of Default and after the
curing or waiving of all Events of Default which may have occurred:

                  (i)      the duties and obligations of the Trustee shall be
         determined solely by the express provisions of this Indenture and the
         Trust Indenture Act, and the Trustee shall not be liable except for the
         performance of such duties and obligations as are specifically set
         forth in this Indenture and no implied covenants or obligations shall
         be read into this Indenture and the Trust Indenture Act against the
         Trustee; and

                  (ii)     in the absence of bad faith on the part of the
         Trustee, the Trustee may conclusively rely as to the truth of the
         statements and the correctness of the opinions expressed therein, upon
         any certificates or opinions furnished to the Trustee and conforming to
         the requirements of this Indenture; but, in the case of any such
         certificates or opinions which by any provisions hereof are
         specifically required to be furnished to the Trustee, the Trustee shall
         be under a duty to examine the same to determine whether or not they
         conform to the requirements of this Indenture;

         (b)      the Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer or Officers of the Trustee, unless the
Trustee was negligent in ascertaining the pertinent facts;

         (c)      the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the written
direction of the holders of not less than a majority in principal amount of the
Debentures at the time Outstanding determined as provided in Section 1.01 and
Section 10.04 relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture;

         (d)      this paragraph shall not be construed to limit the effect of
the penultimate paragraph of this Section 9.01;

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<PAGE>

         (e)      the Trustee shall not be liable in respect of any payment (as
to the correctness of amount, entitlement to receive or any other matters
relating to payment) or notice effected by the Company or any Paying Agent or
any records maintained by any co-registrar with respect to the Debentures; and

         (f)      if any party fails to deliver a notice relating to an event
the fact of which, pursuant to this Indenture, requires notice to be sent to the
Trustee, the Trustee may conclusively rely on its failure to receive such notice
as reason to act as if no such event occurred.

         The Trustee shall not be deemed to have knowledge or notice of any
default (as defined in Section 8.08) or Event of Default hereunder unless a
Responsible Officer of the Trustee shall have received at the Corporate Trust
Office written notice of such default or Event of Default from the Company or
the holders of at least 10% in aggregate principal amount of the Debentures and
such notice refers to such default or Event of Default, the Debentures and the
Indenture.

         None of the provisions contained in this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of
its rights or powers, if there is reasonable ground for believing that the
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

         Whether or not therein provided, every provision of this Indenture
relating to the conduct or affecting the liability of, or affording protection
to, the Trustee shall be subject to the provisions of this Section 9.01.

         Section 9.02. Reliance on Documents, Opinions, Etc. Except as otherwise
provided in Section 9.01:

         (a)      the Trustee may conclusively rely and shall be protected in
acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, bond, debenture, note, coupon or other paper or
document (whether in its original or facsimile form) believed by it in good
faith to be genuine and to have been signed or presented by the proper party or
parties;

         (b)      any request, direction, order or demand of the Company
mentioned herein shall be sufficiently evidenced by an Officer's Certificate
(unless other evidence in respect thereof be herein specifically prescribed);
and any resolution of the Board of Directors may be evidenced to the Trustee by
a copy thereof certified by the Secretary or an Assistant Secretary of the
Company;

         (c)      the Trustee may consult with counsel of its own selection and
any advice or Opinion of Counsel shall be full and complete authorization and

                                       58

<PAGE>

protection in respect of any action taken or omitted by it hereunder in good
faith and in accordance with such advice or Opinion of Counsel;

         (d)      the Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture at the request, order or
direction of any of the Debentureholders pursuant to the provisions of this
Indenture, unless such Debentureholders shall have offered to the Trustee
reasonable security or indemnity satisfactory to it against the costs, expenses
and liabilities which may be incurred therein or thereby;

         (e)      the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture or other paper or document, but the Trustee may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; and

         (f)      the Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed by it with due care
hereunder.

         (g)      the Trustee shall not be liable for any action taken, suffered
or omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Indenture;

         (h)      the rights, privileges, protections, immunities and benefits
given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, and each agent, custodian and other Person employed
to act hereunder; and

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

         Section 9.03. No Responsibility For Recitals, Etc. The recitals
contained herein and in the Debentures (except in the Trustee's certificate of
authentication) shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Debentures. The Trustee shall not be accountable for the use or application by
the

                                       59

<PAGE>

Company of any Debentures or the proceeds of any Debentures authenticated and
delivered by the Trustee in conformity with the provisions of this Indenture.

         Section 9.04. Trustee, Paying Agents, Conversion Agents or Registrar
May Own Debentures. The Trustee, any Paying Agent, any Conversion Agent or
Debenture Registrar, in its individual or any other capacity, may become the
owner or pledgee of Debentures with the same rights it would have if it were not
Trustee, Paying Agent, Conversion Agent or Debenture Registrar.

         Section 9.05. Monies to Be Held in Trust. Subject to the provisions of
Section 14.04, all monies received by the Trustee shall, until used or applied
as herein provided, be held in trust for the purposes for which they were
received. Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee shall be
under no liability for interest on any money received by it hereunder except as
may be agreed in writing from time to time by the Company and the Trustee.

         Section 9.06. Compensation and Expenses of Trustee. The Company
covenants and agrees to pay to the Trustee from time to time, and the Trustee
shall be entitled to, such compensation for all services rendered by it
hereunder in any capacity (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust) as mutually agreed
to in writing between the Company and the Trustee, and the Company will pay or
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances reasonably incurred or made by the Trustee in
accordance with any of the provisions of this Indenture (including the
reasonable compensation and the expenses and disbursements of its counsel and of
all Persons not regularly in its employ) except any such expense, disbursement
or advance as may arise from its negligence or willful misconduct. The Company
also covenants to indemnify the Trustee and any predecessor Trustee (or any
officer, director or employee of the Trustee and such predecessor Trustee), in
any capacity under this Indenture and its agents and any authenticating agent
for, and to hold them harmless against, any and all loss, liability, damage,
claim or expense including taxes (other than taxes based on the income of the
Trustee) incurred without negligence or willful misconduct on the part of the
Trustee or such officers, directors, employees and agent or authenticating
agent, as the case may be, and arising out of or in connection with the
acceptance or administration of this trust or in any other capacity hereunder,
including the costs and expenses of defending themselves against any claim
(whether asserted by the Company, any holder or any other Person) of liability
in connection with the exercise or performance of any of its powers or duties
hereunder. The obligations of the Company under this Section 9.06 to compensate
or indemnify the Trustee (or any predecessor Trustee) and to pay or reimburse
the Trustee for expenses, disbursements and advances shall be secured by a lien
prior to that of the Debentures upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the benefit of the holders
of particular Debentures. The obligation of the Company under this Section and
such lien shall survive the satisfaction and discharge of this

                                       60

<PAGE>

Indenture, the resignation or removal of the Trustee and the termination of this
Indenture for any reason.

         When the Trustee and its agents and any authenticating agent incur
expenses or render services after an Event of Default specified in Section
8.01(i) or (j) with respect to the Company occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any bankruptcy, insolvency or similar laws.

         Section 9.07. Officer's Certificate as Evidence. Except as otherwise
provided in Section 9.01, whenever in the administration of the provisions of
this Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or omitting any action hereunder, such
matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of bad faith or willful misconduct on the part
of the Trustee, be deemed to be conclusively proved and established by an
Officer's Certificate delivered to the Trustee.

         Section 9.08. Conflicting Interests of Trustee. If the Trustee has or
shall acquire a conflicting interest within the meaning of the Trust Indenture
Act, the Trustee shall either eliminate such interest or resign, to the extent
and in the manner provided by, and subject to the provisions of, the Trust
Indenture Act and this Indenture.

         Section 9.09. Eligibility of Trustee. There shall at all times be a
Trustee hereunder which shall be a Person that is eligible pursuant to the Trust
Indenture Act to act as such and has a combined capital and surplus of at least
$50,000,000 (or if such Person is a member of a bank holding company system, its
bank holding company shall have a combined capital and surplus of at least
$50,000,000). If such Person publishes reports of condition at least annually,
pursuant to law or to the requirements of any supervising or examining
authority, then for the purposes of this Section the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of this
Section 9.09, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

         Section 9.10. Resignation or Removal of Trustee.

         (a)      The Trustee may at any time resign by giving written notice of
such resignation to the Company and to the holders of Debentures. Upon receiving
such notice of resignation, the Company shall promptly appoint a successor
trustee by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor trustee. If no successor trustee shall
have been so appointed and have accepted appointment sixty (60) days after the

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mailing of such notice of resignation to the Debentureholders, the resigning
Trustee may, upon ten (10) Business Days' notice to the Company and the
Debentureholders, appoint a successor identified in such notice or may petition,
at the expense of the Company, any court of competent jurisdiction for the
appointment of a successor trustee, or, if any Debentureholder who has been a
bona fide holder of a Debenture or Debentures for at least six (6) months may,
subject to the provisions of Section 8.09, on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor
trustee. Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, appoint a successor trustee.

         (b)      In case at any time any of the following shall occur:

                  (i)      the Trustee shall fail to comply with Section 9.08
         after written request therefor by the Company or by any Debentureholder
         who has been a bona fide holder of a Debenture or Debentures for at
         least six (6) months; or

                  (ii)     the Trustee shall cease to be eligible in accordance
         with the provisions of Section 9.09 and shall fail to resign after
         written request therefor by the Company or by any such Debentureholder;
         or

                  (iii)    the Trustee shall become incapable of acting, or
         shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee
         or of its property shall be appointed, or any public officer shall take
         charge or control of the Trustee or of its property or affairs for the
         purpose of rehabilitation, conservation or liquidation;

then, in any such case, the Company may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee, or, subject to the
provisions of Section 8.09, any Debentureholder who has been a bona fide holder
of a Debenture or Debentures for at least six (6) months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
trustee; provided that if no successor Trustee shall have been appointed and
have accepted appointment sixty (60) days after either the Company or the
Debentureholders has removed the Trustee, or the Trustee resigns, the Trustee so
removed may petition, at the expense of the Company, any court of competent
jurisdiction for an appointment of a successor trustee. Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor trustee.

         (c)      The holders of a majority in aggregate principal amount of the
Debentures at the time outstanding may at any time remove the Trustee and
nominate a successor trustee which shall be deemed appointed as successor

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trustee unless, within ten (10) days after notice to the Company of such
nomination, the Company objects thereto, in which case the Trustee so removed or
any Debentureholder, or if such Trustee so removed or any Debentureholder fails
to act, the Company, upon the terms and conditions and otherwise as in Section
9.10(a) provided, may petition any court of competent jurisdiction for an
appointment of a successor trustee.

         (d)      Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 9.10 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 9.11.

         Section 9.11. Acceptance by Successor Trustee. Any successor trustee
appointed as provided in Section 9.10 shall execute, acknowledge and deliver to
the Company and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become vested with all the rights,
powers, duties and obligations of its predecessor hereunder, with like effect as
if originally named as trustee herein; but, nevertheless, on the written request
of the Company or of the successor trustee, the trustee ceasing to act shall,
upon payment of any amount then due it pursuant to the provisions of Section
9.06, execute and deliver an instrument transferring to such successor trustee
all the rights and powers of the trustee so ceasing to act. Upon request of any
such successor trustee, the Company shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor
trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a lien upon all property and funds held or collected by
such trustee as such, except for funds held in trust for the benefit of holders
of particular Debentures, to secure any amounts then due it pursuant to the
provisions of Section 9.06.

         No successor trustee shall accept appointment as provided in this
Section 9.11 unless, at the time of such acceptance, such successor trustee
shall be qualified under the provisions of Section 9.08 and be eligible under
the provisions of Section 9.09.

         Upon acceptance of appointment by a successor trustee as provided in
this Section 9.11, the Company (or the former trustee or successor trustee, at
the written direction of the Company) shall mail or cause to be mailed notice of
the succession of such trustee hereunder to the holders of Debentures at their
addresses as they shall appear on the Debenture Register. If the Company fails
to mail such notice within ten (10) days after acceptance of appointment by the
successor trustee, the successor trustee shall cause such notice to be mailed at
the expense of the Company.

         Section 9.12. Succession by Merger. Any Person into which the Trustee
may be merged or converted or with which it may be consolidated, or any Person

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resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any Person succeeding to all or substantially all of the
corporate trust business of the Trustee (including any trust created by this
Indenture), shall be the successor to the Trustee hereunder without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, provided that in the case of any Person succeeding to all or
substantially all of the corporate trust business of the Trustee, such Person
shall be qualified under the provisions of Section 9.08 and eligible under the
provisions of Section 9.09.

         In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture, any of the Debentures shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the
certificate of authentication of any predecessor trustee or authenticating agent
appointed by such predecessor trustee, and deliver such Debentures so
authenticated; and in case at that time any of the Debentures shall not have
been authenticated, any successor to the Trustee or any authenticating agent
appointed by such successor trustee may authenticate such Debentures in the name
of the successor trustee; and in all such cases such certificates shall have the
full force that is provided in the Debentures or in this Indenture; provided
that the right to adopt the certificate of authentication of any predecessor
Trustee or authenticate Debentures in the name of any predecessor Trustee shall
apply only to its successor or successors by merger, conversion or
consolidation.

         Section 9.13. Preferential Collection of Claims. If and when the
Trustee shall be or become a creditor of the Company (or any other obligor upon
the Debentures), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of the claims against the Company (or any
such other obligor).

                                   ARTICLE 10
                              THE DEBENTUREHOLDERS

         Section 10.01. Action by Debentureholders. Whenever in this Indenture
it is provided that the holders of a specified percentage in aggregate principal
amount of the Debentures may take any action (including the making of any demand
or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action, the holders
of such specified percentage have joined therein may be evidenced (a) by any
instrument or any number of instruments of similar tenor executed by
Debentureholders in person or by agent or proxy appointed in writing, or (b) by
the record of the holders of Debentures voting in favor thereof at any meeting
of Debentureholders duly called and held in accordance with the provisions of
Article 11, or (c) by a combination of such instrument or instruments and any
such record of such a meeting of Debentureholders. Whenever the Company or the
Trustee solicits the taking of any action by the holders of the Debentures, the

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Company or the Trustee may fix in advance of such solicitation, a date as the
record date for determining holders entitled to take such action. The record
date shall be not more than fifteen (15) days prior to the date of commencement
of solicitation of such action.

         Section 10.02. Proof of Execution by Debentureholders. Subject to the
provisions of Sections 9.01, 9.02 and 11.05, proof of the execution of any
instrument by a Debentureholder or its agent or proxy shall be sufficient if
made in accordance with such reasonable rules and regulations as may be
prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee. The holding of Debentures shall be proved by the registry of such
Debentures or by a certificate of the Debenture Registrar.

         The record of any Debentureholders' meeting shall be proved in the
manner provided in Section 11.06.

         Section 10.03. Who Are Deemed Absolute Owners. The Company, the
Trustee, any Paying Agent, any Conversion Agent and any Debenture Registrar may
deem the Person in whose name such Debenture shall be registered upon the
Debenture Register to be, and may treat it as, the absolute owner of such
Debenture (whether or not such Debenture shall be overdue and notwithstanding
any notation of ownership or other writing thereon made by any Person other than
the Company or any Debenture Registrar) for the purpose of receiving payment of
or on account of the principal of, premium, if any, and Interest on such
Debenture, for conversion of such Debenture and for all other purposes; and
neither the Company nor the Trustee nor any Paying Agent nor any Conversion
Agent nor any Debenture Registrar shall be affected by any notice to the
contrary. All such payments so made to any holder for the time being, or upon
his order, shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for monies payable upon any
such Debenture.

         Section 10.04. Company-owned Debentures Disregarded. In determining
whether the holders of the requisite aggregate principal amount of Debentures
have concurred in any direction, consent, waiver or other action under this
Indenture, Debentures which are owned by the Company or any other obligor on the
Debentures or any Affiliate of the Company or any other obligor on the
Debentures shall be disregarded and deemed not to be outstanding for the purpose
of any such determination; provided that for the purposes of determining whether
the Trustee shall be protected in relying on any such direction, consent, waiver
or other action, only Debentures which a Responsible Officer knows are so owned
shall be so disregarded. Debentures so owned which have been pledged in good
faith may be regarded as outstanding for the purposes of this Section 10.04 if
the pledgee shall establish to the satisfaction of the Trustee the pledgee's
right to vote such Debentures and that the pledgee is not the Company, any other
obligor on the Debentures or any Affiliate of the Company or any such other
obligor. In the case of a dispute as to such right, any decision by the Trustee
taken upon the advice of counsel shall be full protection to the Trustee. Upon
request of the

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<PAGE>

Trustee, the Company shall furnish to the Trustee promptly an Officer's
Certificate listing and identifying all Debentures, if any, known by the Company
to be owned or held by or for the account of any of the above described Persons,
and, subject to Section 9.01, the Trustee shall be entitled to accept such
Officer's Certificate as conclusive evidence of the facts therein set forth and
of the fact that all Debentures not listed therein are outstanding for the
purpose of any such determination.

         Section 10.05. Revocation of Consents, Future Holders Bound. At any
time prior to (but not after) the evidencing to the Trustee, as provided in
Section 10.01, of the taking of any action by the holders of the percentage in
aggregate principal amount of the Debentures specified in this Indenture in
connection with such action, any holder of a Debenture which is shown by the
evidence to be included in the Debentures the holders of which have consented to
such action may, by filing written notice with the Trustee at its Corporate
Trust Office and upon proof of holding as provided in Section 10.02, revoke such
action so far as concerns such Debenture. Except as aforesaid, any such action
taken by the holder of any Debenture shall be conclusive and binding upon such
holder and upon all future holders and owners of such Debenture and of any
Debentures issued in exchange or substitution therefor, irrespective of whether
any notation in regard thereto is made upon such Debenture or any Debenture
issued in exchange or substitution therefor.

                                   ARTICLE 11
                          MEETINGS OF DEBENTUREHOLDERS

         Section 11.01. Purpose of Meetings. A meeting of Debentureholders may
be called at any time and from time to time pursuant to the provisions of this
Article 11 for any of the following purposes:

                  (1)      to give any notice to the Company or to the Trustee
         or to give any directions to the Trustee permitted under this
         Indenture, or to consent to the waiving of any default or Event of
         Default hereunder and its consequences, or to take any other action
         authorized to be taken by Debentureholders pursuant to any of the
         provisions of Article 8;

                  (2)      to remove the Trustee and nominate a successor
         trustee pursuant to the provisions of Article 9;

                  (3)      to consent to the execution of an indenture or
         indentures supplemental hereto pursuant to the provisions of Section
         12.02; or

                  (4)      to take any other action authorized to be taken by or
         on behalf of the holders of any specified aggregate principal amount of
         the Debentures under any other provision of this Indenture or under
         applicable law.

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<PAGE>

         Section 11.02. Call of Meetings by Trustee. The Trustee may at any time
call a meeting of Debentureholders to take any action specified in Section
11.01, to be held at such time and at such place as the Trustee shall determine.
Notice of every meeting of the Debentureholders, setting forth the time and the
place of such meeting and in general terms the action proposed to be taken at
such meeting and the establishment of any record date pursuant to Section 10.01,
shall be mailed to holders of Debentures at their addresses as they shall appear
on the Debenture Register. Such notice shall also be mailed to the Company. Such
notices shall be mailed not less than twenty (20) nor more than ninety (90) days
prior to the date fixed for the meeting.

         Any meeting of Debentureholders shall be valid without notice if the
holders of all Debentures then outstanding are present in person or by proxy or
if notice is waived before or after the meeting by the holders of all Debentures
outstanding, and if the Company and the Trustee are either present by duly
authorized representatives or have, before or after the meeting, waived notice.

         Section 11.03. Call of Meetings by Company or Debentureholders. In case
at any time the Company, pursuant to a resolution of its Board of Directors, or
the holders of at least ten percent (10%) in aggregate principal amount of the
Debentures then outstanding, shall have requested the Trustee to call a meeting
of Debentureholders, by written request setting forth in reasonable detail the
action proposed to be taken at the meeting, and the Trustee shall not have
mailed the notice of such meeting within twenty (20) days after receipt of such
request, then the Company or such Debentureholders may determine the time and
the place for such meeting and may call such meeting to take any action
authorized in Section 11.01, by mailing notice thereof as provided in Section
11.02.

         Section 11.04. Qualifications for Voting. To be entitled to vote at any
meeting of Debentureholders a person shall (a) be a holder of one or more
Debentures on the record date pertaining to such meeting or (b) be a person
appointed by an instrument in writing as proxy by a holder of one or more
Debentures on the record date pertaining to such meeting. The only persons who
shall be entitled to be present or to speak at any meeting of Debentureholders
shall be the persons entitled to vote at such meeting and their counsel and any
representatives of the Trustee and its counsel and any representatives of the
Company and its counsel.

         Section 11.05. Regulations. Notwithstanding any other provisions of
this Indenture, the Trustee may make such reasonable regulations as it may deem
advisable for any meeting of Debentureholders, in regard to proof of the holding
of Debentures and of the appointment of proxies, and in regard to the
appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other
matters concerning the conduct of the meeting as it shall think fit.

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         The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Debentureholders as provided in Section 11.03, in which case the
Company or the Debentureholders calling the meeting, as the case may be, shall
in like manner appoint a temporary chairman. A permanent chairman and a
permanent secretary of the meeting shall be elected by vote of the holders of a
majority in principal amount of the Debentures represented at the meeting and
entitled to vote at the meeting.

         Subject to the provisions of Section 10.04, at any meeting each
Debentureholder or proxyholder shall be entitled to one vote for each $50
principal amount of Debentures held or represented by him; provided that no vote
shall be cast or counted at any meeting in respect of any Debenture challenged
as not outstanding and ruled by the chairman of the meeting to be not
outstanding. The chairman of the meeting shall have no right to vote other than
by virtue of Debentures held by him or instruments in writing as aforesaid duly
designating him as the proxy to vote on behalf of other Debentureholders. Any
meeting of Debentureholders duly called pursuant to the provisions of Section
11.02 or 11.03 may be adjourned from time to time by the holders of a majority
of the aggregate principal amount of Debentures represented at the meeting,
whether or not constituting a quorum, and the meeting may be held as so
adjourned without further notice.

         Section 11.06. Voting. The vote upon any resolution submitted to any
meeting of Debentureholders shall be by written ballot on which shall be
subscribed the signatures of the holders of Debentures or of their
representatives by proxy and the outstanding principal amount of the Debentures
held or represented by them. The permanent chairman of the meeting shall appoint
two inspectors of votes who shall count all votes cast at the meeting for or
against any resolution and who shall make and file with the secretary of the
meeting their verified written reports in duplicate of all votes cast at the
meeting. A record in duplicate of the proceedings of each meeting of
Debentureholders shall be prepared by the secretary of the meeting and there
shall be attached to said record the original reports of the inspectors of votes
on any vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was mailed as provided in Section 11.02. The record
shall show the principal amount of the Debentures voting in favor of or against
any resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the duplicates shall
be delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting.

         Any record so signed and verified shall be conclusive evidence of the
matters therein stated.

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<PAGE>

         Section 11.07. No Delay of Rights by Meeting. Nothing contained in this
Article 11 shall be deemed or construed to authorize or permit, by reason of any
call of a meeting of Debentureholders or any rights expressly or impliedly
conferred hereunder to make such call, any hindrance or delay in the exercise of
any right or rights conferred upon or reserved to the Trustee or to the
Debentureholders under any of the provisions of this Indenture or of the
Debentures.

                                   ARTICLE 12
                             SUPPLEMENTAL INDENTURES

         Section 12.01. Supplemental Indentures Without Consent of
Debentureholders. The Company, when authorized by the resolutions of the Board
of Directors, and the Trustee may, from time to time, and at any time enter into
an indenture or indentures supplemental hereto for one or more of the following
purposes:

         (a)      make provision with respect to the conversion rights of the
holders of Debentures pursuant to the requirements of Section 16.06 and the
redemption obligations of the Company pursuant to the requirements of Section
3.05(h);

         (b)      to convey, transfer, assign, mortgage or pledge to the Trustee
as security for the Debentures, any property or assets;

         (c)      to evidence the succession of another Person to the Company,
or successive successions, and the assumption by the successor Person of the
covenants, agreements and obligations of the Company pursuant to Article 13;

         (d)      to add to the covenants of the Company such further covenants,
restrictions or conditions as the Board of Directors and the Trustee shall
consider to be for the benefit of the holders of Debentures, and to make the
occurrence, or the occurrence and continuance, of a default in any such
additional covenants, restrictions or conditions a default or an Event of
Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; provided that in respect of any
such additional covenant, restriction or condition, such supplemental indenture
may provide for a particular period of grace after default (which period may be
shorter or longer than that allowed in the case of other defaults) or may
provide for an immediate enforcement upon such default or may limit the remedies
available to the Trustee upon such default;

         (e)      to provide for the issuance under this Indenture of Debentures
in coupon form (including Debentures registrable as to principal only) and to
provide for exchangeability of such Debentures with the Debentures issued
hereunder in fully registered form and to make all appropriate changes for such
purpose;

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<PAGE>

         (f)      to cure any ambiguity or to correct or supplement any
provision contained herein or in any supplemental indenture that may be
defective or inconsistent with any other provision contained herein or in any
supplemental indenture, or to make such other provisions in regard to matters or
questions arising under this Indenture that shall not materially adversely
affect the interests of the holders of the Debentures;

         (g)      to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Debentures;

         (h)      to modify, eliminate or add to the provisions of this
Indenture to such extent as shall be necessary to effect the qualifications of
this Indenture under the Trust Indenture Act, or under any similar federal
statute hereafter enacted; or

         (i)      make other changes to the indenture or forms or terms of the
Debentures, provided no such change individually or in the aggregate with all
other such changes has or will have a material adverse effect on the interests
of the Debentureholders.

         Upon the written request of the Company, accompanied by a copy of the
resolutions of the Board of Directors certified by its Secretary or Assistant
Secretary authorizing the execution of any supplemental indenture, the Trustee
is hereby authorized to join with the Company in the execution of any such
supplemental indenture, to make any further appropriate agreements and
stipulations that may be therein contained and to accept the conveyance,
transfer and assignment of any property thereunder, if any, but the Trustee
shall not be obligated to, but may in its discretion, enter into any
supplemental indenture that affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

         Any supplemental indenture authorized by the provisions of this Section
12.01 may be executed by the Company and the Trustee without the consent of the
holders of any of the Debentures at the time outstanding, notwithstanding any of
the provisions of Section 12.02.

         Notwithstanding any other provision of the Indenture or the Debentures,
the Registration Rights Agreement and the obligation to pay Liquidated Damages
thereunder may be amended, modified or waived in accordance with the provisions
of the Registration Rights Agreement.

         Section 12.02. Supplemental Indenture with Consent of Debentureholders.
With the consent (evidenced as provided in Article 10) of the holders of at
least a majority in aggregate principal amount of the Debentures at the time
outstanding, the Company, when authorized by the resolutions of the Board of
Directors, and the Trustee may, from time to time and at any time, enter into an
indenture or indentures supplemental hereto for the purpose of adding any

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provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or any supplemental indenture or of modifying in any manner the
rights of the holders of the Debentures; provided that no such supplemental
indenture shall (i) extend the fixed maturity of any Debenture, or reduce the
rate or extend the time of payment of Interest thereon, or reduce the principal
amount thereof or premium, if any, thereon, or reduce any amount payable on
redemption or repurchase thereof, or impair the right of any Debentureholder to
institute suit for the payment thereof, or make the principal thereof or
Interest or premium, if any, thereon payable in any coin or currency other than
that provided in the Debentures, or change the obligation of the Company to
redeem any Debenture on a Redemption Date in a manner adverse to the holders of
Debentures, or change the obligation of the Company to repurchase any Debenture
upon a Change of Control in a manner adverse to the holders of Debentures, or
impair the right to convert the Debentures into Common Stock subject to the
terms set forth herein, including Section 16.06, or reduce the number of shares
of Common Stock or other property receivable upon conversion, in each case,
without the consent of the holder of each Debenture so affected, or modify any
of the provisions of this Section 12.02 or Section 8.07, except to increase any
such percentage or to provide that certain other provisions of this Indenture
cannot be modified or waived without the consent of the holder of each Debenture
so affected, or reduce the quorum or voting requirements set forth in Article 11
or (ii) reduce the aforesaid percentage of Debentures, the holders of which are
required to consent to any such supplemental indenture, without the consent of
the holders of all Debentures then outstanding.

         Upon the written request of the Company, accompanied by a copy of the
resolutions of the Board of Directors certified by its Secretary or Assistant
Secretary authorizing the execution of any such supplemental indenture, and upon
the filing with the Trustee of evidence of the consent of Debentureholders as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.

         It shall not be necessary for the consent of the Debentureholders under
this Section 12.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.

         Section 12.03. Effect of Supplemental Indenture. Any supplemental
indenture executed pursuant to the provisions of this Article 12 shall comply
with the Trust Indenture Act, as then in effect, provided that this Section
12.03 shall not require such supplemental indenture or the Trustee to be
qualified under the Trust Indenture Act prior to the time such qualification is
in fact required under the terms of the Trust Indenture Act or the Indenture has
been qualified under the Trust Indenture Act, nor shall it constitute any
admission or acknowledgment by

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<PAGE>

any party to such supplemental indenture that any such qualification is required
prior to the time such qualification is in fact required under the terms of the
Trust Indenture Act or the Indenture has been qualified under the Trust
Indenture Act. Upon the execution of any supplemental indenture pursuant to the
provisions of this Article 12, this Indenture shall be and be deemed to be
modified and amended in accordance therewith and the respective rights,
limitation of rights, obligations, duties and immunities under this Indenture of
the Trustee, the Company and the holders of Debentures shall thereafter be
determined, exercised and enforced hereunder, subject in all respects to such
modifications and amendments and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

         Section 12.04. Notation on Debentures. Debentures authenticated and
delivered after the execution of any supplemental indenture pursuant to the
provisions of this Article 12 may bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the
Company or the Trustee shall so determine, new Debentures so modified as to
conform, in the opinion of the Trustee and the Board of Directors, to any
modification of this Indenture contained in any such supplemental indenture may,
at the Company's expense, be prepared and executed by the Company, authenticated
by the Trustee (or an authenticating agent duly appointed by the Trustee
pursuant to Section 17.10) and delivered in exchange for the Debentures then
outstanding, upon surrender of such Debentures then outstanding.

         Section 12.05. Evidence of Compliance of Supplemental Indenture to Be
Furnished to Trustee. Prior to entering into any supplemental indenture, the
Trustee shall be provided with an Officer's Certificate and an Opinion of
Counsel as conclusive evidence that any supplemental indenture executed pursuant
hereto complies with the requirements of, and that the Trustee's execution of
such supplemental indenture is permitted under, this Article 12.

                                   ARTICLE 13
                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

         Section 13.01. Company May Consolidate on Certain Terms. Subject to the
provisions of Section 13.02, the Company shall not consolidate or merge with or
into any other Person or Persons (whether or not affiliated with the Company),
nor shall the Company or its successor or successors be a party or parties to
successive consolidations or mergers, nor shall the Company sell, convey,
transfer or lease the property and assets of the Company substantially as an
entirety, to any other Person (whether or not affiliated with the Company),
unless: (i) the Company is the surviving Person, or the resulting, surviving or
transferee Person is a corporation organized and existing under the laws of the
United States of America, any state thereof or the District of Columbia; (ii)
upon any such

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consolidation, merger, sale, conveyance, transfer or lease, the due and punctual
payment of the principal of and premium, if any, and Interest on all of the
Debentures, according to their tenor and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture to be
performed by the Company, shall be expressly assumed, by supplemental indenture
satisfactory in form to the Trustee, executed and delivered to the Trustee by
the Person (if other than the Company) formed by such consolidation, or into
which the Company shall have been merged, or by the Person that shall have
acquired or leased such property, and such supplemental indenture shall provide
for the applicable conversion rights set forth in Section 16.06; and (iii)
immediately after giving effect to the transaction described above, no Event of
Default, and no event which, after notice or lapse of time or both, would become
an Event of Default, shall have happened and be continuing.

         Section 13.02. Successor to Be Substituted. In case of any such
consolidation, merger, sale, conveyance, transfer or lease and upon the
assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the due and
punctual payment of the principal of and premium, if any, and Interest on all of
the Debentures and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by the Company, such successor
Person shall succeed to and be substituted for the Company, with the same effect
as if it had been named herein as the party of this first part. Such successor
Person thereupon may cause to be signed, and may issue either in its own name or
in the name of The Williams Companies, Inc. any or all of the Debentures,
issuable hereunder that theretofore shall not have been signed by the Company
and delivered to the Trustee; and, upon the order of such successor Person
instead of the Company and subject to all the terms, conditions and limitations
in this Indenture prescribed, the Trustee shall authenticate and shall deliver,
or cause to be authenticated and delivered, any Debentures that previously shall
have been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Debentures that such successor Person thereafter shall
cause to be signed and delivered to the Trustee for that purpose. All the
Debentures so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Debentures theretofore or thereafter issued in
accordance with the terms of this Indenture as though all of such Debentures had
been issued at the date of the execution hereof. In the event of any such
consolidation, merger, sale, conveyance, transfer or lease, the Person named as
the "COMPANY" in the first paragraph of this Indenture or any successor that
shall thereafter have become such in the manner prescribed in this Article 13
may be dissolved, wound up and liquidated at any time thereafter and such Person
shall be released from its liabilities as obligor and maker of the Debentures
and from its obligations under this Indenture.

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<PAGE>

         In case of any such consolidation, merger, sale, conveyance, transfer
or lease, such changes in phraseology and form (but not in substance) may be
made in the Debentures thereafter to be issued as may be appropriate.

         Section 13.03. Opinion of Counsel to Be Given Trustee. The Trustee
shall receive an Officer's Certificate and an Opinion of Counsel as conclusive
evidence that any such consolidation, merger, sale, conveyance, transfer or
lease and any such assumption complies with the provisions of this Article 13.

                                   ARTICLE 14
                     SATISFACTION AND DISCHARGE OF INDENTURE

         Section 14.01. Discharge of Indenture. When the Company shall deliver
to the Trustee for cancellation all Debentures theretofore authenticated (other
than any Debentures that have been destroyed, lost or stolen and in lieu of or
in substitution for which other Debentures shall have been authenticated and
delivered) and not theretofore canceled, or all the Debentures not theretofore
canceled or delivered to the Trustee for cancellation shall have become due and
payable and the Company shall deposit with the Trustee, in trust, funds
sufficient to pay at maturity or upon redemption of all of the Debentures (other
than any Debentures that shall have been mutilated, destroyed, lost or stolen
and in lieu of or in substitution for which other Debentures shall have been
authenticated and delivered) not theretofore canceled or delivered to the
Trustee for cancellation, including principal and premium, if any, and Interest
due or to become due to such date of maturity or Redemption Date, as the case
may be, accompanied by a verification report, as to the sufficiency of the
deposited amount, from an independent certified accountant or other financial
professional satisfactory to the Trustee, and if the Company shall also pay or
cause to be paid all other sums payable hereunder by the Company, then this
Indenture shall cease to be of further effect (except as to remaining rights of
registration of transfer, substitution and exchange and conversion of
Debentures, rights hereunder of Debentureholders to receive payments of
principal of and premium, if any, and Interest on, the Debentures and the other
rights, duties and obligations of Debentureholders, as beneficiaries hereof with
respect to the amounts, if any, so deposited with the Trustee and the rights,
obligations and immunities of the Trustee hereunder, including, but not limited
to, Section 9.06 hereof), and the Trustee, on written demand of the Company
accompanied by an Officer's Certificate and an Opinion of Counsel as required by
Section 17.04 and at the cost and expense of the Company, shall execute proper
instruments acknowledging satisfaction of and discharging this Indenture; the
Company, however, hereby agrees to reimburse the Trustee for any costs or
expenses thereafter reasonably and properly incurred by the Trustee and to
compensate the Trustee for any services thereafter reasonably and properly
rendered by the Trustee in connection with this Indenture or the Debentures.

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         Section 14.02. Deposited Monies to Be Held in Trust by Trustee. Subject
to Section 14.04, all monies deposited with the Trustee pursuant to Section
14.01, shall be held in trust for the sole benefit of the Debentureholders, and
such monies shall be applied by the Trustee to the payment, either directly or
through any Paying Agent (including the Company if acting as its own Paying
Agent), to the holders of the particular Debentures for the payment or
redemption of which such monies have been deposited with the Trustee, of all
sums due and to become due thereon for principal and Interest and premium, if
any.

         Section 14.03. Paying Agent to Repay Monies Held. Upon the satisfaction
and discharge of this Indenture, all monies then held by any Paying Agent of the
Debentures (other than the Trustee) shall, upon written request of the Company,
be repaid to it or paid to the Trustee, and thereupon such Paying Agent shall be
released from all further liability with respect to such monies.

         Section 14.04. Return of Unclaimed Monies. Subject to the requirements
of applicable law, any monies deposited with or paid to the Trustee for payment
of the principal of, premium, if any, or Interest on Debentures and not applied
but remaining unclaimed by the holders of Debentures for two years after the
date upon which the principal of, premium, if any, or Interest on such
Debentures, as the case may be, shall have become due and payable, shall be
repaid to the Company by the Trustee on demand and all liability of the Trustee
shall thereupon cease with respect to such monies; and the holder of any of the
Debentures shall thereafter look only to the Company for any payment that such
holder may be entitled to collect unless an applicable abandoned property law
designates another Person.

                                   ARTICLE 15
         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

         Section 15.01. Indenture and Debentures Solely Corporate Obligations.
No recourse for the payment of the principal of or premium, if any, or Interest
on any Debenture, or for any claim based thereon or otherwise in respect
thereof, and no recourse under or upon any obligation, covenant or agreement of
the Company in this Indenture or in any supplemental indenture or in any
Debenture, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder, employee, agent, officer,
director or subsidiary, as such, past, present or future, of the Company or of
any successor corporation, either directly or through the Company or any
successor corporation, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issue of the Debentures.

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<PAGE>

                                   ARTICLE 16
                            CONVERSION OF DEBENTURES

         Section 16.01. Right to Convert. Subject to and upon compliance with
the provisions of this Indenture, prior to the close of business on June 1,2033
(or in the case of Debentures called for redemption pursuant to Section 3.01,
prior to the close of business on the Business Day prior to the Redemption
Date), the holder of any Debenture shall have the right, at such holder's
option, to convert the principal amount of the Debenture, or any portion of such
principal amount which is a multiple of $50, into fully paid and non-assessable
shares of Common Stock (as such shares shall then be constituted) at the
Conversion Rate in effect at such time, by surrender of the Debenture so to be
converted in whole or in part, together with any required funds, under the
circumstances described in this Section 16.01 and in the manner provided in
Section 16.02.

         (a)      A Debenture in respect of which a holder is electing to
exercise its option to require repurchase upon a Change of Control pursuant to
Section 3.05, may be converted only if such holder withdraws its election in
accordance with Section 3.05(g). A holder of Debentures is not entitled to any
rights of a holder of Common Stock until such holder has converted its
Debentures to Common Stock, and only to the extent such Debentures are deemed to
have been converted to Common Stock under this Article 16.

         Section 16.02. Exercise of Conversion Privilege; Issuance of Common
Stock on Conversion; No Adjustment for Interest or Dividends. In order to
exercise the conversion privilege with respect to any Debenture in certificated
form, the Company must receive at the office or agency of the Company maintained
for that purpose or, at the option of such holder, the Corporate Trust Office,
such Debenture with the original or facsimile of the form entitled "CONVERSION
NOTICE" on the reverse thereof, duly completed and manually signed, together
with such Debentures duly endorsed for transfer, accompanied by the funds, if
any, required by the fifth paragraph of this Section 16.02. Such notice shall
also state the name or names (with address or addresses) in which the
certificate or certificates for shares of Common Stock which shall be issuable
on such conversion shall be issued, and shall be accompanied by transfer or
similar taxes, if required pursuant to Section 16.07.

         In order to exercise the conversion privilege with respect to any
interest in a Global Debenture, the beneficial holder must complete, or cause to
be completed, the appropriate instruction form for conversion pursuant to the
Depositary's book-entry conversion program, deliver, or cause to be delivered,
by book-entry delivery an interest in such Global Debenture, furnish appropriate
endorsements and transfer documents if required by the Company or the Trustee or
Conversion Agent, and pay the funds, if any, required by this Section 16.02 and
any transfer taxes if required pursuant to Section 16.07.

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<PAGE>

         As promptly as reasonably practicable after satisfaction of the
requirements for conversion set forth above, subject to compliance with any
restrictions on transfer if shares issuable on conversion are to be issued in a
name other than that of the Debentureholder (as if such transfer were a transfer
of the Debenture or Debentures (or portion thereof) so converted), the Company
shall issue and shall deliver to such Debentureholder at the office or agency
maintained by the Company for such purpose pursuant to Section 6.02, a
certificate or certificates for the number of full shares of Common Stock
issuable upon the conversion of such Debenture or portion thereof as determined
by the Company in accordance with the provisions of this Article 16 and a check
or cash in respect of any fractional interest in respect of a share of Common
Stock arising upon such conversion, calculated by the Company as provided in
Section 16.03. In case any Debenture of a denomination greater than $50 shall be
surrendered for partial conversion, and subject to Section 2.03, the Company
shall execute and the Trustee shall authenticate and deliver to the holder of
the Debenture so surrendered, without charge to him, a new Debenture or
Debentures in authorized denominations in an aggregate principal amount equal to
the unconverted portion of the surrendered Debenture.

         Each conversion shall be deemed to have been effected as to any such
Debenture (or portion thereof) on the date on which the requirements set forth
above in this Section 16.02 have been satisfied as to such Debenture (or portion
thereof) (such date, the "CONVERSION DATE"), and the Person in whose name any
certificate or certificates for shares of Common Stock shall be issuable upon
such conversion shall be deemed to have become on said date the holder of record
of the shares represented thereby; provided that any such surrender on any date
when the stock transfer books of the Company shall be closed shall constitute
the Person in whose name the certificates are to be issued as the record holder
thereof for all purposes on the next succeeding day on which such stock transfer
books are open, but such conversion shall be at the Conversion Rate in effect on
the date upon which such Debenture shall be surrendered.

         Any Debenture or portion thereof surrendered for conversion during the
period from 5:00 p.m., New York City time, on the Record Date for any Interest
Payment Date to the close of business on the following Interest Payment Date
that has not been called for redemption during such period shall be accompanied
by payment, in immediately available funds or other funds acceptable to the
Company, of an amount equal to the Interest otherwise payable on such Interest
Payment Date on the principal amount being converted; provided that no such
payment need be made (1) if the Company has specified a Redemption Date that is
after a Record Date and on or prior to the next Interest Payment Date, (2) if
the Company has specified a Repurchase Date following a Change of Control that
is during such period or (3) to the extent of any overdue Interest, if any
overdue Interest exists at the time of conversion with respect to such
Debenture. Except as provided above in this Section 16.02, no payment or other
adjustment shall be made for Interest accrued on any Debenture converted or for
dividends on any

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<PAGE>

shares issued upon the conversion of such Debenture as provided in this Article
16.

         Upon the conversion of an interest in a Global Debenture, the Trustee
(or other Conversion Agent appointed by the Company), or the Custodian at the
direction of the Trustee (or other Conversion Agent appointed by the Company),
shall make a notation on such Global Debenture as to the reduction in the
principal amount represented thereby. The Company shall notify the Trustee in
writing of any conversions of Debentures effected through any Conversion Agent
other than the Trustee.

         Section 16.03. Cash Payments in Lieu of Fractional Shares. No
fractional shares of Common Stock or scrip certificates representing fractional
shares shall be issued upon conversion of Debentures. If more than one Debenture
shall be surrendered for conversion at one time by the same holder, the number
of full shares that shall be issuable upon conversion shall be computed on the
basis of the aggregate principal amount of the Debentures (or specified portions
thereof to the extent permitted hereby) so surrendered. If any fractional share
of stock would be issuable upon the conversion of any Debenture or Debentures,
the Company shall make an adjustment and payment therefor in cash at the Closing
Sale Price on the Conversion Date to the holder of Debentures.

         Section 16.04. Conversion Rate. Each $50 principal amount of the
Debentures shall be convertible into the number of shares of Common Stock
specified in the form of Debenture (herein called the "CONVERSION RATE")
attached as Exhibit A hereto, subject to adjustment as provided in this Article
16.

         Section 16.05. Adjustment of Conversion Rate. The Conversion Rate shall
be adjusted from time to time by the Company as follows:

         (a)      In case the Company shall hereafter pay a dividend or make a
distribution to all holders of the outstanding Common Stock in shares of Common
Stock, the Conversion Rate shall be increased so that the same shall equal the
rate determined by multiplying the Conversion Rate in effect at the opening of
business on the date following the date fixed for the determination of
stockholders entitled to receive such dividend or other distribution by a
fraction,

                  (i)      the numerator of which shall be the sum of the number
         of shares of Common Stock outstanding at the close of business on the
         date fixed for the determination of stockholders entitled to receive
         such dividend or other distribution plus the total number of shares of
         Common Stock constituting such dividend or other distribution; and

                  (ii)     the denominator of which shall be the number of
         shares of Common Stock outstanding at the close of business on the date
         fixed for such determination,

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<PAGE>

such increase to become effective immediately after the opening of business on
the Business Day following the date fixed for such determination. For the
purpose of this paragraph (a), the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company. The
Company will not pay any dividend or make any distribution on shares of Common
Stock held in the treasury of the Company. If any dividend or distribution of
the type described in this Section 16.05(a) is declared but not so paid or made,
the Conversion Rate shall again be adjusted to the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared.

         (b)      In case the Company shall issue rights or warrants to all
holders of its outstanding shares of Common Stock entitling them (for a period
expiring within forty-five (45) days after the date fixed for determination of
stockholders entitled to receive such rights or warrants) to subscribe for or
purchase shares of Common Stock at a price per share less than the Current
Market Price on the date fixed for determination of stockholders entitled to
receive such rights or warrants, the Conversion Rate shall be increased so that
the same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to the date fixed for determination of stockholders
entitled to receive such rights or warrants by a fraction,

                  (i)      the numerator of which shall be the number of shares
         of Common Stock outstanding on the date fixed for determination of
         stockholders entitled to receive such rights or warrants plus the total
         number of additional shares of Common Stock offered for subscription or
         purchase, and

                  (ii)     the denominator of which shall be the sum of the
         number of shares of Common Stock outstanding at the close of business
         on the date fixed for determination of stockholders entitled to receive
         such rights or warrants plus the number of shares that the aggregate
         offering price of the total number of shares so offered would purchase
         at such Current Market Price.

         Such adjustment shall be successively made whenever any such rights or
warrants are issued, and shall become effective immediately after the opening of
business on the Business Day following the date fixed for determination of
stockholders entitled to receive such rights or warrants. To the extent that
shares of Common Stock are not delivered after the expiration of such rights or
warrants, the Conversion Rate shall be readjusted to the Conversion Rate that
would then be in effect had the adjustments made upon the issuance of such
rights or warrants been made on the basis of delivery of only the number of
shares of Common Stock actually delivered. If such rights or warrants are not so
issued, the Conversion Rate shall again be adjusted to be the Conversion Rate
that would then be in effect if such date fixed for the determination of
stockholders entitled to receive such rights or warrants had not been fixed. In
determining whether any rights or warrants entitle the holders to subscribe for
or purchase shares of

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<PAGE>

Common Stock at less than such Current Market Price, and in determining the
aggregate offering price of such shares of Common Stock, there shall be taken
into account any consideration received by the Company for such rights or
warrants and any amount payable on exercise or conversion thereof, the value of
such consideration, if other than cash, to be determined by the Board of
Directors.

         (c)      In case outstanding shares of Common Stock shall be subdivided
into a greater number of shares of Common Stock, the Conversion Rate in effect
at the opening of business on the Business Day following the day upon which such
subdivision becomes effective shall be proportionately increased, and
conversely, in case outstanding shares of Common Stock shall be combined into a
smaller number of shares of Common Stock, the Conversion Rate in effect at the
opening of business on the Business Day following the day upon which such
combination becomes effective shall be proportionately reduced, such increase or
reduction, as the case may be, to become effective immediately after the opening
of business on the day following the day upon which such subdivision or
combination becomes effective.

         (d)      In case the Company shall, by dividend or otherwise,
distribute to all holders of its Common Stock shares of any class of capital
stock of the Company or evidences of its indebtedness or assets (including
securities, but excluding any rights or warrants referred to in Section
16.05(b), excluding any dividends or distributions in connection with the
liquidation or winding up of the Company, and excluding any dividend or
distribution (x) paid exclusively in cash or (y) referred to in Section 16.05(a)
(any of the foregoing hereinafter in this Section 16.05(d)) called the
"SECURITIES")), then, in each such case (unless the Company elects to reserve
such Securities for distribution to the Debentureholders upon the conversion of
the Debentures so that any such holder converting Debentures will receive upon
such conversion, in addition to the shares of Common Stock to which such holder
is entitled, the amount and kind of such Securities which such holder would have
received if such holder had converted its Debentures into Common Stock
immediately prior to the Stock Record Date), the Conversion Rate shall be
increased so that the same shall be equal to the rate determined by multiplying
the Conversion Rate in effect on the Stock Record Date with respect to such
distribution by a fraction,

                  (i)      the numerator of which shall be the Current Market
         Price on such Stock Record Date; and

                  (ii)     the denominator of which shall be the Current Market
         Price on such Stock Record Date less the Fair Market Value (as
         determined by the Board of Directors, whose determination shall be
         conclusive, and described in a resolution of the Board of Directors) on
         the Stock Record Date of the portion of the Securities so distributed
         applicable to one share of Common Stock,

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<PAGE>

such adjustment to become effective immediately prior to the opening of business
on the Business Day following such Stock Record Date; provided that if the then
Fair Market Value (as so determined) of the portion of the Securities so
distributed applicable to one share of Common Stock is equal to or greater than
the Current Market Price on the Stock Record Date, in lieu of the foregoing
adjustment, adequate provision shall be made so that each Debentureholder shall
have the right to receive upon conversion the amount of Securities such holder
would have received had such holder converted each Debenture on the Stock Record
Date. If such dividend or distribution is not so paid or made, the Conversion
Rate shall again be adjusted to be the Conversion Rate that would then be in
effect if such dividend or distribution had not been declared. If the Board of
Directors determines the Fair Market Value of any distribution for purposes of
this Section 16.05(d) by reference to the actual or when issued trading market
for any securities, it must in doing so consider the prices in such market over
the same period used in computing the Current Market Price on the applicable
Stock Record Date. Notwithstanding the foregoing, if the Securities distributed
by the Company to all holders of its Common Stock consist of capital stock of,
or similar equity interests in, a Subsidiary or other business unit, the
Conversion Rate shall be increased so that the same shall be equal to the rate
determined by multiplying the Conversion Rate in effect on the Stock Record Date
with respect to such distribution by a fraction,

                  (i)      the numerator of which shall be the sum of (x) the
         average Closing Sale Price of one share of Common Stock over the ten
         consecutive Trading Day period (the "SPINOFF VALUATION PERIOD")
         commencing on and including the fifth Trading Day after the date on
         which "ex-dividend trading" commences on the Common Stock on the New
         York Stock Exchange or such other national or regional exchange or
         market on which the Common Stock is then listed or quoted and (y) the
         average Closing Sale Price over the Spinoff Valuation Period of the
         portion of the Securities so distributed applicable to one share of
         Common Stock; and

                  (ii)     the denominator of which shall be the average Closing
         Sale Price of one share of Common Stock over the Spinoff Valuation
         Period,

such adjustment to become effective immediately prior to the opening of business
on the Business Day following such Stock Record Date; provided that the Company
may in lieu of the foregoing adjustment make adequate provision so that each
Debentureholder shall have the right to receive upon conversion the amount of
Securities such holder would have received had such holder converted each
Debenture on the Stock Record Date with respect to such distribution.

         Rights or warrants distributed by the Company to all holders of Common
Stock entitling the holders thereof to subscribe for or purchase shares of the
Company's capital stock (either initially or under certain circumstances), which
rights or warrants, until the occurrence of a specified event or events
("TRIGGER

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<PAGE>

EVENT"): (i) are deemed to be transferred with such shares of Common Stock; (ii)
are not exercisable; and (iii) are also issued in respect of future issuances of
Common Stock, shall be deemed not to have been distributed for purposes of this
Section 16.06 (and no adjustment to the Conversion Rate under this Section 16.06
will be required) until the occurrence of the earliest Trigger Event, whereupon
such rights and warrants shall be deemed to have been distributed and an
appropriate adjustment (if any is required) to the Conversion Rate shall be made
under this Section 16.05(d). If any such right or warrant, including any such
existing rights or warrants distributed prior to the date of this Indenture, are
subject to events, upon the occurrence of which such rights or warrants become
exercisable to purchase different securities, evidences of indebtedness or other
assets, then the date of the occurrence of any and each such event shall be
deemed to be the date of distribution and Stock Record Date with respect to new
rights or warrants with such rights (and a termination or expiration of the
existing rights or warrants without exercise by any of the holders thereof). In
addition, in the event of any distribution (or deemed distribution) of rights or
warrants, or any Trigger Event or other event (of the type described in the
preceding sentence) with respect thereto that was counted for purposes of
calculating a distribution amount for which an adjustment to the Conversion Rate
under this Section 16.06 was made, (1) in the case of any such rights or
warrants that shall all have been redeemed or repurchased without exercise by
any holders thereof, the Conversion Rate shall be readjusted upon such final
redemption or repurchase to give effect to such distribution or Trigger Event,
as the case may be, as though it were a cash distribution, equal to the per
share redemption or repurchase price received by a holder or holders of Common
Stock with respect to such rights or warrants (assuming such holder had retained
such rights or warrants), made to all holders of Common Stock as of the date of
such redemption or repurchase, and (2) in the case of such rights or warrants
that shall have expired or been terminated without exercise by any holders
thereof, the Conversion Rate shall be readjusted as if such rights and warrants
had not been issued.

         No adjustment of the Conversion Rate shall be made pursuant to this
Section 16.05(d) in respect of rights or warrants distributed or deemed
distributed on any Trigger Event to the extent that such rights or warrants are
actually distributed, or reserved by the Company for distribution to holders of
Debentures upon conversion by such holders of Debentures to Common Stock.

         For purposes of this Section 16.05(d) and Section 16.05(a) and (b), any
dividend or distribution to which this Section 16.05(d) is applicable that also
includes shares of Common Stock, or rights or warrants to subscribe for or
purchase shares of Common Stock (or both), shall be deemed instead to be (1) a
dividend or distribution of the evidences of indebtedness, assets or shares of
capital stock other than such shares of Common Stock or rights or warrants (and
any Conversion Rate adjustment required by this Section 16.05(d) with respect to
such dividend or distribution shall then be made) immediately followed by (2) a
dividend or distribution of such shares of Common Stock or such rights or

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<PAGE>

warrants (and any further Conversion Rate adjustment required by Sections
16.05(a) and 16.05(b) with respect to such dividend or distribution shall then
be made), except (A) the Stock Record Date of such dividend or distribution
shall be substituted as "the date fixed for the determination of stockholders
entitled to receive such dividend or other distribution", "the date fixed for
the determination of stockholders entitled to receive such rights or warrants"
and "the date fixed for such determination" within the meaning of Section
16.05(a) and 16.05(b) and (B) any shares of Common Stock included in such
dividend or distribution shall not be deemed "outstanding at the close of
business on the date fixed for such determination" within the meaning of Section
16.05(a).

         (e)      In case the Company shall, by dividend or otherwise,
distribute to all holders of its Common Stock cash (excluding (x) any quarterly
cash dividend on the Common Stock to the extent the aggregate cash dividend per
share of Common Stock in any fiscal quarter does not exceed the greater of (A)
the amount per share of Common Stock of the next preceding quarterly cash
dividend on the Common Stock to the extent that such preceding quarterly
dividend did not require any adjustment of the Conversion Rate pursuant to this
Section 16.05(e) (as adjusted to reflect subdivisions, or combinations of the
Common Stock), and (B) 10% of the arithmetic average of the Closing Sale Price
during the ten Trading Days immediately prior to the date of declaration of such
dividend, and (y) any dividend or distribution in connection with the
liquidation, dissolution or winding up of the Company, whether voluntary or
involuntary), then, in such case, the Conversion Rate shall be increased so that
the same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to the close of business on such Stock Record Date by a
fraction,

                  (i)      the numerator of which shall be the Current Market
         Price on such Stock Record Date; and

                  (ii)     the denominator of which shall be the Current Market
         Price on such Stock Record Date less the amount of cash so distributed
         (and not excluded as provided above) applicable to one share of Common
         Stock,

such adjustment to be effective immediately prior to the opening of business on
the day following the Stock Record Date; provided that if the portion of the
cash so distributed applicable to one share of Common Stock is equal to or
greater than the Current Market Price on the Stock Record Date, in lieu of the
foregoing adjustment, adequate provision shall be made so that each
Debentureholder shall have the right to receive upon conversion the amount of
cash such holder would have received had such holder converted each Debenture on
the Stock Record Date. If such dividend or distribution is not so paid or made,
the Conversion Rate shall again be adjusted to be the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared. If any
adjustment is required to be made as set forth in this Section 16.05(e) as a
result of a distribution that is a quarterly dividend, such adjustment shall be
based upon the amount by which such distribution exceeds the amount of the
quarterly cash dividend permitted to

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be excluded pursuant hereto. If an adjustment is required to be made as set
forth in this Section 16.05(e) above as a result of a distribution that is not a
quarterly dividend, such adjustment shall be based upon the full amount of the
distribution.

         (f)      In case a tender or exchange offer made by the Company or any
Subsidiary for all or any portion of the Common Stock shall expire and such
tender or exchange offer (as amended upon the expiration thereof) shall require
the payment to stockholders of consideration per share of Common Stock having a
Fair Market Value (as determined by the Board of Directors, whose determination
shall be conclusive and described in a resolution of the Board of Directors)
that as of the last time (the "EXPIRATION TIME") tenders or exchanges may be
made pursuant to such tender or exchange offer (as it may be amended) exceeds
the Closing Sale Price of a share of Common Stock on the Trading Day next
succeeding the Expiration Time, the Conversion Rate shall be increased so that
the same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to the Expiration Time by a fraction,

                  (i)      the numerator of which shall be the sum of (x) the
         Fair Market Value (determined as aforesaid) of the aggregate
         consideration payable to stockholders based on the acceptance (up to
         any maximum specified in the terms of the tender or exchange offer) of
         all shares validly tendered or exchanged and not withdrawn as of the
         Expiration Time (the shares deemed so accepted up to any such maximum,
         being referred to as the "PURCHASED SHARES") and (y) the product of the
         number of shares of Common Stock outstanding (less any Purchased
         Shares) at the Expiration Time and the Closing Sale Price of a share of
         Common Stock on the Trading Day next succeeding the Expiration Time,
         and

                  (ii)     the denominator of which shall be the number of
         shares of Common Stock outstanding (including any tendered or exchanged
         shares) at the Expiration Time multiplied by the Closing Sale Price of
         a share of Common Stock on the Trading Day next succeeding the
         Expiration Time

such adjustment to become effective immediately prior to the opening of business
on the Business Day following the Expiration Time. If the Company is obligated
to purchase shares pursuant to any such tender or exchange offer, but the
Company is permanently prevented by applicable law from effecting any such
purchases or all such purchases are rescinded, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would then be in effect if such
tender or exchange offer had not been made.

         (g)      In case of a tender or exchange offer made by a Person other
than the Company or any Subsidiary for an amount that increases the offeror's
ownership of Common Stock to more than twenty-five percent (25%) of the Common
Stock outstanding and shall involve the payment by such Person of consideration
per share of Common Stock having a Fair Market Value (as determined by the Board
of Directors, whose determination shall be conclusive,

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<PAGE>

and described in a resolution of the Board of Directors) that as of the last
time (the "OFFER EXPIRATION TIME") tenders or exchanges may be made pursuant to
such tender or exchange offer (as it shall have been amended) exceeds the
Closing Sale Price of a share of Common Stock on the Trading Day next succeeding
the Offer Expiration Time, and in which, as of the Offer Expiration Time the
Board of Directors is not recommending rejection of the offer, the Conversion
Rate shall be increased so that the same shall equal the rate determined by
multiplying the Conversion Rate in effect immediately prior to the Offer
Expiration Time by a fraction

                  (i)      the numerator of which shall be the sum of (x) the
         Fair Market Value (determined as aforesaid) of the aggregate
         consideration payable to stockholders based on the acceptance (up to
         any maximum specified in the terms of the tender or exchange offer) of
         all shares validly tendered or exchanged and not withdrawn as of the
         Offer Expiration Time (the shares deemed so accepted, up to any such
         maximum, being referred to as the "ACCEPTED PURCHASED SHARES") and (y)
         the product of the number of shares of Common Stock outstanding (less
         any Accepted Purchased Shares) at the Offer Expiration Time and the
         Closing Sale Price of a share of Common Stock on the Trading Day next
         succeeding the Offer Expiration Time, and

                  (ii)     the denominator of which shall be the number of
         shares of Common Stock outstanding (including any tendered or exchanged
         shares) at the Offer Expiration Time multiplied by the Closing Sale
         Price of a share of Common Stock on the Trading Day next succeeding the
         Offer Expiration Time,

such adjustment to become effective immediately prior to the opening of business
on the day following the Offer Expiration Time. If such Person is obligated to
purchase shares pursuant to any such tender or exchange offer, but such Person
is permanently prevented by applicable law from effecting any such purchases or
all such purchases are rescinded, the Conversion Rate shall again be adjusted to
be the Conversion Rate that would then be in effect if such tender or exchange
offer had not been made. Notwithstanding the foregoing, the adjustment described
in this Section 16.05(g) shall not be made if, as of the Offer Expiration Time,
the offering documents with respect to such offer disclose a plan or intention
to cause the Company to engage in any transaction described in Article 13.

         (h)      For purposes of this Section 16.05, the following terms shall
have the meaning indicated:

                  (i)      "CURRENT MARKET PRICE" shall mean the average of the
         daily Closing Sale Prices per share of Common Stock for the ten
         consecutive Trading Days selected by the Company commencing no more
         than 30 Trading Days before and ending not later than the earlier of
         such date of determination and the day before the "EX" date with
         respect to the

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<PAGE>

         issuance, distribution, subdivision or combination requiring such
         computation immediately prior to the date in question. For purpose of
         this paragraph, the term "EX" date, (1) when used with respect to any
         issuance or distribution, means the first date on which the Common
         Stock trades, regular way, on the relevant exchange or in the relevant
         market from which the Closing Sale Price was obtained without the right
         to receive such issuance or distribution, and (2) when used with
         respect to any subdivision or combination of shares of Common Stock,
         means the first date on which the Common Stock trades, regular way, on
         such exchange or in such market after the time at which such
         subdivision or combination becomes effective.

         If another issuance, distribution, subdivision or combination to which
Section 16.05 applies occurs during the period applicable for calculating
"CURRENT MARKET PRICE" pursuant to the definition in the preceding paragraph,
"CURRENT MARKET PRICE" shall be calculated for such period in a manner
determined by the Board of Directors to reflect the impact of such issuance,
distribution, subdivision or combination on the Closing Sale Price of the Common
Stock during such period.

                  (ii)     "FAIR MARKET VALUE" shall mean the amount which a
         willing buyer would pay a willing seller in an arm's-length
         transaction.

                  (iii)    "STOCK RECORD DATE" shall mean, with respect to any
         dividend, distribution or other transaction or event in which the
         holders of Common Stock have the right to receive any cash, securities
         or other property or in which the Common Stock (or other applicable
         security) is exchanged for or converted into any combination of cash,
         securities or other property, the date fixed for determination of
         stockholders entitled to receive such cash, securities or other
         property (whether such date is fixed by the Board of Directors or by
         statute, contract or otherwise).

                  (iv)     "TRADING DAY" shall mean (x) if the applicable
         security is quoted on the Nasdaq National Market, a day on which trades
         may be made thereon or (y) if the applicable security is listed or
         admitted for trading on the New York Stock Exchange or another national
         securities exchange, a day on which the New York Stock Exchange or such
         other national securities exchange is open for business or (z) if the
         applicable security is not so listed, admitted for trading or quoted,
         any day other than a Saturday or Sunday or a day on which banking
         institutions in the State of New York are authorized or obligated by
         law or executive order to close.

         (i)      The Company may make such increases in the Conversion Rate, in
addition to those required by Section 16.05(a), (b), (c), (d), (e), (f) or (g),
as the Board of Directors considers to be advisable to avoid or diminish any
income tax to holders of Common Stock or rights to purchase Common Stock
resulting from

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<PAGE>

any dividend or distribution of stock (or rights to acquire stock) or from any
event treated as such for income tax purposes.

         To the extent permitted by applicable law, the Company from time to
time may increase the Conversion Rate by any amount for any period of time if
the period is at least twenty (20) days, the increase is irrevocable during the
period and the Board of Directors shall have made a determination that such
increase would be in the best interests of the Company, which determination
shall be conclusive. Whenever the Conversion Rate is increased pursuant to the
preceding sentence, the Company shall mail to holders of record of the
Debentures a notice of the increase at least fifteen (15) days prior to the date
the increased Conversion Rate takes effect, and such notice shall state the
increased Conversion Rate and the period during which it will be in effect.

         (j)      No adjustment in the Conversion Rate shall be required unless
such adjustment would require an increase or decrease of at least one percent
(1%) in such rate; provided that any adjustments that by reason of this Section
16.05(j) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. All calculations under this Article 16
shall be made by the Company and shall be made to the nearest cent or to the
nearest one-ten thousandth (1/10,000) of a share, as the case may be. No
adjustment need be made for rights to purchase Common Stock pursuant to a
Company plan for reinvestment of dividends or interest or for any issuance of
Common Stock or convertible or exchangeable securities or rights to purchase
Common Stock or convertible or exchangeable securities. To the extent the
Debentures become convertible into cash, assets, property or securities (other
than capital stock of the Company), no adjustment need be made thereafter as to
the cash, assets, property or such securities. Interest will not accrue on any
cash into which the Debentures are convertible.

         (k)      Whenever the Conversion Rate is adjusted as herein provided,
the Company shall promptly file with the Trustee and any Conversion Agent other
than the Trustee an Officer's Certificate setting forth the Conversion Rate
after such adjustment and setting forth a brief statement of the facts requiring
such adjustment. Unless and until a Responsible Officer of the Trustee shall
have received such Officer's Certificate, the Trustee shall not be deemed to
have knowledge of any adjustment of the Conversion Rate and may assume that the
last Conversion Rate of which it has knowledge is still in effect. Promptly
after delivery of such certificate, the Company shall prepare a notice of such
adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and
the date on which each adjustment becomes effective and shall mail such notice
of such adjustment of the Conversion Rate to the holder of each Debenture at his
last address appearing on the Debenture Register provided for in Section 2.05 of
this Indenture, within twenty (20) days after execution thereof. Failure to
deliver such notice shall not affect the legality or validity of any such
adjustment.

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<PAGE>

         (l)      In any case in which this Section 16.05 provides that an
adjustment shall become effective immediately after (1) a Record Date or Stock
Record Date for an event, (2) the date fixed for the determination of
stockholders entitled to receive a dividend or distribution pursuant to Section
16.05(a), (3) a date fixed for the determination of stockholders entitled to
receive rights or warrants pursuant to Section 16.05(b), (4) the Expiration Time
for any tender or exchange offer pursuant to Section 16.05(f), or (5) the Offer
Expiration Time for a tender or exchange offer pursuant to Section 16.05(g)(i)
(each a "DETERMINATION DATE"), the Company may elect to defer until the
occurrence of the applicable Adjustment Event (as hereinafter defined) (x)
issuing to the holder of any Debenture converted after such Determination Date
and before the occurrence of such Adjustment Event, the additional shares of
Common Stock or other securities issuable upon such conversion by reason of the
adjustment required by such Adjustment Event over and above the Common Stock
issuable upon such conversion before giving effect to such adjustment and (y)
paying to such holder any amount in cash in lieu of any fraction pursuant to
Section 16.03. For purposes of this Section 16.05(l), the term "ADJUSTMENT
EVENT" shall mean:

                  (i)      in any case referred to in clause (1) hereof, the
         occurrence of such event,

                  (ii)     in any case referred to in clause (2) hereof, the
         date any such dividend or distribution is paid or made,

                  (iii)    in any case referred to in clause (3) hereof, the
         date of expiration of such rights or warrants, and

                  (iv)     in any case referred to in clause (4) or clause (5)
         hereof, the date a sale or exchange of Common Stock pursuant to such
         tender or exchange offer is consummated and becomes irrevocable.

         (m)      For purposes of this Section 16.05, the number of shares of
Common Stock at any time outstanding shall not include shares held in the
treasury of the Company but shall include shares issuable in respect of scrip
certificates issued in lieu of fractions of shares of Common Stock. The Company
will not pay any dividend or make any distribution on shares of Common Stock
held in the treasury of the Company.

         Section 16.06. Effect of Reclassification, Consolidation, Merger or
Sale. If any of the following events occur, namely (i) any reclassification or
change of the outstanding shares of Common Stock (other than a subdivision or
combination to which Section 16.05(c) applies), (ii) any consolidation, merger
or combination of the Company with another Person as a result of which holders
of Common Stock shall be entitled to receive stock, other securities or other
property or assets (including cash) with respect to or in exchange for such
Common Stock, or (iii) any sale or conveyance of all or substantially all of the
properties and assets of the Company to any other Person as a result of which
holders of Common Stock shall

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<PAGE>

be entitled to receive stock, other securities or other property or assets
(including cash) with respect to or in exchange for such Common Stock, then the
Company or the successor or purchasing Person, as the case may be, shall execute
with the Trustee a supplemental indenture (which shall comply with the Trust
Indenture Act as in force at the date of execution of such supplemental
indenture) providing that each Debenture shall be convertible into the kind and
amount of shares of stock, other securities or other property or assets
(including cash) receivable upon such reclassification, change, consolidation,
merger, combination, sale or conveyance by a holder of a number of shares of
Common Stock issuable upon conversion of such Debentures (assuming, for such
purposes, a sufficient number of authorized shares of Common Stock are available
to convert all such Debentures) immediately prior to such reclassification,
change, consolidation, merger, combination, sale or conveyance assuming such
holder of Common Stock did not exercise his rights of election, if any, as to
the kind or amount of stock, other securities or other property or assets
(including cash) receivable upon such reclassification, change, consolidation,
merger, combination, sale or conveyance (provided that, if the kind or amount of
stock, other securities or other property or assets (including cash) receivable
upon such reclassification, change, consolidation, merger, combination, sale or
conveyance is not the same for each share of Common Stock in respect of which
such rights of election shall not have been exercised ("NON-ELECTING SHARE"),
then for the purposes of this Section 16.06 the kind and amount of stock, other
securities or other property or assets (including cash) receivable upon such
reclassification, change, consolidation, merger, combination, sale or conveyance
for each non-electing share shall be deemed to be the kind and amount so
receivable per share by a plurality of the non-electing shares). Such
supplemental indenture shall provide for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Article
16.

         The Company shall cause notice of the execution of such supplemental
indenture to be mailed to each holder of Debentures, at its address appearing on
the Debenture Register provided for in Section 2.05 of this Indenture, within
twenty (20) days after execution thereof. Failure to deliver such notice shall
not affect the legality or validity of such supplemental indenture.

         The above provisions of this Section shall similarly apply to
successive reclassifications, changes, consolidations, mergers, combinations,
sales and conveyances.

         If this Section 16.06 applies to any event or occurrence, Section 16.05
shall not apply.

         Section 16.07. Taxes on Shares Issued. The issue of stock certificates
on conversions of Debentures shall be made without charge to the converting
Debentureholder for any documentary, stamp or similar issue or transfer tax in
respect of the issue thereof. The Company shall not, however, be required to pay
any such tax which may be payable in respect of any transfer involved in the
issue

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<PAGE>

and delivery of stock in any name other than that of the holder of any Debenture
converted, and the Company shall not be required to issue or deliver any such
stock certificate unless and until the Person or Persons requesting the issue
thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been paid.

         Section 16.08. Reservation of Shares, Shares to Be Fully Paid;
Compliance with Governmental Requirements; Listing of Common Stock. The Company
shall provide, free from preemptive rights, out of its authorized but unissued
shares or shares held in treasury, sufficient shares of Common Stock to provide
for the conversion of the Debentures from time to time as such Debentures are
presented for conversion.

         Before taking any action which would cause an adjustment increasing the
Conversion Rate to an amount that would cause the Conversion Price to be reduced
below the then par value, if any, of the shares of Common Stock issuable upon
conversion of the Debentures, the Company will take all corporate action which
may, in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue shares of such Common Stock at such adjusted
Conversion Rate.

         The Company covenants that all shares of Common Stock which may be
issued upon conversion of Debentures will upon issue be fully paid and
non-assessable by the Company and free from all taxes, liens and charges with
respect to the issue thereof.

         The Company covenants that, if any shares of Common Stock to be
provided for the purpose of conversion of Debentures hereunder require
registration with or approval of any governmental authority under any federal or
state law before such shares may be validly issued upon conversion, the Company
will in good faith and as expeditiously as reasonably possible, to the extent
then permitted by the rules and interpretations of the Commission (or any
successor thereto), endeavor to secure such registration or approval, as the
case may be.

         The Company further covenants that, if at any time the Common Stock
shall be listed on the New York Stock Exchange or any other national securities
exchange or automated quotation system, the Company will, if permitted by the
rules of such exchange or automated quotation system, list and keep listed, so
long as the Common Stock shall be so listed on such exchange or automated
quotation system, all Common Stock issuable upon conversion of the Debenture;
provided that if the rules of such exchange or automated quotation system permit
the Company to defer the listing of such Common Stock until the first conversion
of the Debentures into Common Stock in accordance with the provisions of this
Indenture, the Company covenants to list such Common Stock issuable upon
conversion of the Debentures in accordance with the requirements of such
exchange or automated quotation system at such time.

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         Section 16.09. Responsibility of Trustee. The Trustee and any other
Conversion Agent shall not at any time be under any duty or responsibility to
any holder of Debentures to determine the Conversion Rate or whether any facts
exist which may require any adjustment of the Conversion Rate, or with respect
to the nature or extent or calculation of any such adjustment when made, or with
respect to the method employed, or herein or in any supplemental indenture
provided to be employed, in making the same. The Trustee and any other
Conversion Agent shall not be accountable with respect to the validity or value
(or the kind or amount) of any shares of Common Stock, or of any securities or
property, which may at any time be issued or delivered upon the conversion of
any Debenture; and the Trustee and any other Conversion Agent make no
representations with respect thereto. Neither the Trustee nor any Conversion
Agent shall be responsible for any failure of the Company to issue, transfer or
deliver any shares of Common Stock or stock certificates or other securities or
property or cash upon the surrender of any Debenture for the purpose of
conversion or to comply with any of the duties, responsibilities or covenants of
the Company contained in this Article 16. Without limiting the generality of the
foregoing, neither the Trustee nor any other Conversion Agent shall be under any
responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 16.06 relating either to
the kind or amount of shares of stock or securities or property (including cash)
receivable by Debentureholders upon the conversion of their Debentures after any
event referred to in such Section 16.06 or to any adjustment to be made with
respect thereto, but, subject to the provisions of Section 9.01, may accept as
conclusive evidence of the correctness of any such provisions, and shall be
protected in relying upon, the Officer's Certificate (which the Company shall be
obligated to file with the Trustee prior to the execution of any such
supplemental indenture) with respect thereto.

         Section 16.10. Notice to Holders Prior to Certain Actions. In case:

         (a)      the Company shall declare a dividend (or any other
distribution) on its Common Stock that would require an adjustment in the
Conversion Rate pursuant to Section 16.05; or

         (b)      the Company shall authorize the granting to the holders of all
or substantially all of its Common Stock of rights or warrants to subscribe for
or purchase any share of any class or any other rights or warrants; or

         (c)      of any reclassification or reorganization of the Common Stock
of the Company (other than a subdivision or combination of its outstanding
Common Stock, or a change in par value, or from par value to no par value, or
from no par value to par value), or of any consolidation or merger to which the
Company is a party and for which approval of any stockholders of the Company is
required, or of the sale or transfer of all or substantially all of the assets
of the Company; or

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<PAGE>

         (d)      of the voluntary or involuntary dissolution, liquidation or
winding up of the Company;

the Company shall cause to be filed with the Trustee and to be mailed to each
holder of Debentures at his address appearing on the Debenture Register provided
for in Section 2.05 of this Indenture, as promptly as possible but in any event
at least ten (10) days prior to the applicable date hereinafter specified, a
notice stating (x) the date on which a record is to be taken for the purpose of
such dividend, distribution or rights or warrants, or, if a record is not to be
taken, the date as of which the holders of Common Stock of record to be entitled
to such dividend, distribution or rights are to be determined, or (y) the date
on which such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up is expected to become effective or occur,
and the date as of which it is expected that holders of Common Stock of record
shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding up. Failure to give such notice,
or any defect therein, shall not affect the legality or validity of such
dividend, distribution, reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up.

         Section 16.11. Stockholder Rights Plans. If the rights provided for in
the Company's rights agreement dated February 6, 1996 or in any future
stockholder rights plan adopted by the Company have separated from the shares of
Common Stock in accordance with the provisions of the applicable stockholder
rights agreement so that the holders of the Debentures would not be entitled to
receive any rights in respect of Common Stock issuable upon conversion of the
Debentures, the Conversion Rate will be adjusted as if the Company had
distributed to all holders of Common Stock shares of the Company's capital
stock, evidences of indebtedness or assets in accordance with Section 16.05(d),
subject to readjustment in the event of the expiration, termination or
redemption of the rights. In lieu of any such adjustment, the Company may amend
such applicable stockholder rights agreement to provide that upon conversion of
the Debentures the holders will receive, in addition to the Common Stock
Issuable upon such conversion, the rights which would have attached to such
Common Stock if the rights had not become separated from the Common Stock under
such applicable stockholder rights agreement.

                                   ARTICLE 17
                            MISCELLANEOUS PROVISIONS

         Section 17.01. Provisions Binding on Company's Successors. All the
covenants, stipulations, promises and agreements by the Company contained in
this Indenture shall bind its successors and assigns whether so expressed or
not.

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<PAGE>

         Section 17.02. Official Acts by Successor Corporation. Any act or
proceeding by any provision of this Indenture authorized or required to be done
or performed by any board, committee or officer of the Company shall and may be
done and performed with like force and effect by the like board, committee or
officer of any Person that shall at the time be the lawful sole successor of the
Company.

         Section 17.03. Addresses for Notices, Etc. Any notice or demand which
by any provision of this Indenture is required or permitted to be given or
served by the Trustee or by the holders of Debentures on the Company shall be
deemed to have been sufficiently given or made, for all purposes, if given or
served by being deposited postage prepaid by registered or certified mail in a
post office letter box or sent by telecopier transmission addressed as follows:
to The Williams Companies, Inc., One Williams Center, Tulsa, Oklahoma, 74172,
Telecopier No.: (918) 573-2065, Attention: Treasurer. Any notice, direction,
request or demand hereunder to or upon the Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if given or served in writing by
telecopier transmission addressed as follows: JPMorgan Chase Bank, 4 New York
Plaza, 15th Floor, New York, New York 10004, Telecopier No.: (212) 623-6167,
Attention: Institutional Trust Services. No such notice, direction, request or
demand shall be deemed given to the Trustee unless actually received by a
Responsible Officer of the Trustee at the Corporate Trust Office of the Trustee.

         The Trustee, by notice to the Company, may designate additional or
different addresses for subsequent notices or communications.

         Any notice or communication mailed to a Debentureholder shall be mailed
to him by first class mail, postage prepaid, at his address as it appears on the
Debenture Register and shall be sufficiently given to him if so mailed within
the time prescribed.

         Failure to mail a notice or communication to a Debentureholder or any
defect in it shall not affect its sufficiency with respect to other
Debentureholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

         Section 17.04. Governing Law. This Indenture and each Debenture shall
be deemed to be a contract made under the laws of the State of New York, and for
all purposes shall be construed in accordance with the laws of the State of New
York (including Section 5-1401 of the New York General Obligations Law or any
successor to such statute).

         Section 17.05. Evidence of Compliance with Conditions Precedent,
Certificates to Trustee. Upon any application or demand by the Company to the
Trustee to take any action under any of the provisions of this Indenture, the
Company shall furnish to the Trustee an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the

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proposed action have been complied with, and an Opinion of Counsel stating that,
in the opinion of such counsel, all such conditions precedent have been complied
with.

         Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture shall include: (1) a statement that the person
making such certificate or opinion has read such covenant or condition; (2) a
brief statement as to the nature and scope of the examination or investigation
upon which the statement or opinion contained in such certificate or opinion is
based (such brief statement may indicate the extent to which such person relied
upon an opinion of counsel or other officer of the Company in conducting such
examination or investigation); (3) a statement that, in the opinion of such
person, he has made such examination or investigation as is necessary to enable
him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and (4) a statement as to whether or not, in
the opinion of such person, such condition or covenant has been complied with.

         Section 17.06. Legal Holidays. In any case in which the date of
maturity of Interest on or principal of the Debentures or the redemption date of
any Debenture will not be a Business Day, then payment of such Interest on or
principal of the Debentures need not be made on such date, but may be made on
the next succeeding Business Day with the same force and effect as if made on
the date of maturity or the redemption date, and no Interest shall accrue for
the period from and after such date, except that if such next succeeding
Business Day would fall in the next calendar year, then payment of such Interest
on or principal of the Debentures shall be made on the immediately preceding
Business Day.

         Section 17.07. Trust Indenture Act. This Indenture is hereby made
subject to, and shall be governed by, the provisions of the Trust Indenture Act
required to be part of and to govern indentures qualified under the Trust
Indenture Act; provided that unless otherwise required by law, notwithstanding
the foregoing, this Indenture and the Debentures issued hereunder shall not be
subject to the provisions of subsections (a)(1), (a)(2), and (a)(3) of Section
314 of the Trust Indenture Act as now in effect or as hereafter amended or
modified; provided further that this Section 17.07 shall not require this
Indenture or the Trustee to be qualified under the Trust Indenture Act prior to
the time such qualification is in fact required under the terms of the Trust
Indenture Act, nor shall it constitute any admission or acknowledgment by any
party to the Indenture that any such qualification is required prior to the time
such qualification is in fact required under the terms of the Trust Indenture
Act. If any provision hereof limits, qualifies or conflicts with another
provision hereof which is required to be included in an indenture qualified
under the Trust Indenture Act, such required provision shall control.

         Section 17.08. No Security Interest Created. Except as otherwise
provided in Section 9.06 hereof, nothing in this Indenture or in the Debentures,

                                       94

<PAGE>

expressed or implied, shall be construed to constitute a security interest under
the Uniform Commercial Code or similar legislation, as now or hereafter enacted
and in effect, in any jurisdiction in which property of the Company or its
subsidiaries is located.

         Section 17.09. Benefits of Indenture. Nothing in this Indenture or in
the Debentures, express or implied, shall give to any Person, other than the
parties hereto, any Paying Agent, any authenticating agent, any Conversion
Agent, any Debenture Registrar and their successors hereunder and the holders of
Debentures any benefit or any legal or equitable right, remedy or claim under
this Indenture.

         Section 17.10. Table of Contents, Headings, Etc. The table of contents
and the titles and headings of the Articles and Sections of this Indenture have
been inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions
hereof.

         Section 17.11. Authenticating Agent. The Trustee may appoint an
authenticating agent that shall be authorized to act on its behalf, and subject
to its direction, in the authentication and delivery of Debentures in connection
with the original issuance thereof and transfers and exchanges of Debentures
hereunder, including under Sections 2.04, 2.05, 2.06, 2.07, 3.03 and 3.05, as
fully to all intents and purposes as though the authenticating agent had been
expressly authorized by this Indenture and those Sections to authenticate and
deliver Debentures. For all purposes of this Indenture, the authentication and
delivery of Debentures by the authenticating agent shall be deemed to be
authentication and delivery of such Debentures "by the Trustee" and a
certificate of authentication executed on behalf of the Trustee by an
authenticating agent shall be deemed to satisfy any requirement hereunder or in
the Debentures for the Trustee's certificate of authentication. Such
authenticating agent shall at all times be a Person eligible to serve as trustee
hereunder pursuant to Section 9.09.

         Any corporation into which any authenticating agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any authenticating agent
shall be a party, or any corporation succeeding to the corporate trust business
of any authenticating agent, shall be the successor of the authenticating agent
hereunder, if such successor corporation is otherwise eligible under this
Section 17.11, without the execution or filing of any paper or any further act
on the part of the parties hereto or the authenticating agent or such successor
corporation.

         Any authenticating agent may at any time resign by giving written
notice of resignation to the Trustee and to the Company. The Trustee may at any
time terminate the agency of any authenticating agent by giving written notice
of termination to such authenticating agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time
any authenticating agent shall cease to be eligible under this Section, the
Trustee shall

                                       95

<PAGE>

either promptly appoint a successor authenticating agent or itself assume the
duties and obligations of the former authenticating agent under this Indenture
and, upon such appointment of a successor authenticating agent, if made, shall
give written notice of such appointment of a successor authenticating agent to
the Company and shall mail notice of such appointment of a successor
authenticating agent to all holders of Debentures as the names and addresses of
such holders appear on the Debenture Register.

         The Company agrees to pay to the authenticating agent from time to time
such reasonable compensation for its services as shall be agreed upon in writing
between the Company and the authenticating agent.

         The provisions of Sections 9.02, 9.03, 9.04 and 10.03 and this Section
17.11 shall be applicable to any authenticating agent.

         Section 17.12. Execution in Counterparts. This Indenture may be
executed in any number of counterparts, each of which shall be an original, but
such counterparts shall together constitute but one and the same instrument.

         Section 17.13. Severability. In case any provision in this Indenture or
in the Debentures shall be invalid, illegal or unenforceable, then (to the
extent permitted by law) the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

         JPMorgan Chase Bank hereby accepts the trusts in this Indenture
declared and provided, upon the terms and conditions herein above set forth.

                                       96

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed.

                                    THE WILLIAMS COMPANIES, INC.

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

                                    JPMORGAN CHASE BANK, as Trustee

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

<PAGE>

                                                                       EXHIBIT A

         [Include only for Global Debentures:]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE
"DEPOSITARY", WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THE CERTIFICATES)
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND
ANY PAYMENT HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH
AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

[Include only for Debentures that are Restricted Securities]

         THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING THIS
SECURITY AGREES FOR THE BENEFIT OF THE WILLIAMS COMPANIES, INC. THAT (a) THIS
SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED OTHER THAN (1) TO
THE WILLIAMS COMPANIES, INC. OR ANY AFFILIATE, (2) IN A TRANSACTION ENTITLED TO
AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE
l44A UNDER THE SECURITIES ACT ("RULE l44A"), TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE l44A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE BOX CHECKED
BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
SECURITY), (4) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT, SUBJECT, IN THE CASE OF CLAUSES (2) OR (4), TO THE RECEIPT
BY THE WILLIAMS COMPANIES, INC. OF AN OPINION OF COUNSEL OR SUCH OTHER EVIDENCE
ACCEPTABLE TO THE WILLIAMS COMPANIES, INC. THAT SUCH RESALE, PLEDGE OR TRANSFER
IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (5)
PURSUANT TO AN EFFECTIVE REGISTRATION

<PAGE>

STATEMENT AND THAT (b) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED
TO, NOTIFY ANY PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO
HEREIN AND DELIVER TO THE TRANSFEREE (OTHER THAN A QUALIFIED INSTITUTIONAL
BUYER) PRIOR TO THE SALE A COPY OF THE TRANSFER RESTRICTIONS APPLICABLE HERETO.
THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS DEBENTURE
PURSUANT TO CLAUSE (5) ABOVE OR UPON ANY TRANSFER OF THIS DEBENTURE UNDER RULE
144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). THE INDENTURE
CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF
THIS DEBENTURE IN VIOLATION OF THE FOREGOING RESTRICTION.

         THIS DEBENTURE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR U.S. FEDERAL
INCOME TAX PURPOSES. FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL
REVENUE CODE OF 1986 (AS AMENDED), THE ISSUE PRICE OF EACH DEBENTURE IS $50 PER
$50 OF PRINCIPAL AMOUNT, THE ISSUE DATE IS MAY 28, 2003, THE YIELD TO MATURITY
IS 5.50% COMPOUNDED QUARTERLY AND THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS
$82.52.

         THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A
REGISTRATION RIGHTS AGREEMENT DATED MAY 28, 2003 AND, BY ITS ACCEPTANCE HEREOF,
AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION
RIGHTS AGREEMENT.

         BECAUSE OF THE FOREGOING RESTRICTIONS, PURCHASERS ARE ADVISED TO
CONSULT LEGAL COUNSEL PRIOR TO MAKING ANY RESALE, PLEDGE OR TRANSFER OF ANY OF
THE CONVERTIBLE DEBENTURES OR COMMON STOCK ISSUABLE UPON CONVERSION OF THE
CONVERTIBLE DEBENTURES. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO
BEAR THE FINANCIAL RISKS OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

                                      A-2

<PAGE>

                          THE WILLIAMS COMPANIES, INC.
                 5.50% JUNIOR SUBORDINATED CONVERTIBLE DEBENTURE
                                    DUE 2033

                                                                CUSIP: 969457852

No.                                                               $_____________

         The Williams Companies, Inc., a corporation duly organized and validly
existing under the laws of the State of Delaware (herein called the "COMPANY",
which term includes any successor corporation under the Indenture referred to on
the reverse hereof), for value received hereby promises to pay to ____________
or its registered assigns, the principal sum of [_____________ DOLLARS] [the
principal sum set forth on Schedule I hereto](1) on June 1, 2033 at the office
or agency of the Company maintained for that purpose in accordance with the
terms of the Indenture, in such coin or currency of the United States of America
as at the time of payment shall be legal tender for the payment of public and
private debts, and to pay interest (subject to deferral as provided herein),
quarterly on March 1, June 1, September 1 and December 1 of each year,
commencing September 1, 2003, on said principal sum at said office or agency, in
like coin or currency, at the rate per annum of 5.50%, from the March 1, June 1,
September 1 or December 1, as the case may be, next preceding the date of this
Debenture to which interest has been paid or duly provided for, unless the date
hereof is a date to which interest has been paid or duly provided for, in which
case from the date of this Debenture, or unless no interest has been paid or
duly provided for on the Debentures, in which case from May 28, 2003 until
payment of said principal sum has been made or duly provided for.
Notwithstanding the foregoing, if the date hereof is after any February 15, May
15, August 15 or November 15, as the case may be, and before the following March
1, June 1, September 1, or December 1, this Debenture shall bear interest from
such March 1, June 1, September 1 or December 1; provided that if the Company
shall default in the payment of interest due on such March 1, June 1, September
1, or December 1, then this Debenture shall bear interest from the next
preceding March 1, June 1, September 1, or December 1 to which interest has been
paid or duly provided for or, if no interest has been paid or duly provided for
on such Debenture, from May 28, 2003. Except as otherwise provided in the
Indenture, the interest payable on the Debenture pursuant to the Indenture on
any March 1, June 1, September 1 or December 1 will be paid to the Person
entitled thereto as it appears in the Debenture Register at the close of
business on the Record Date, which shall be the February 15, May 15, August 15
or November 15 (whether or not a Business Day) next preceding such March 1, June
1, September 1 or December 1, as provided in the Indenture; provided that any
such interest not punctually paid or duly provided for shall be payable as
provided in the Indenture. The Company

-------------
(1)   For Global Debentures only.

                                      A-3

<PAGE>

shall pay interest (i) on any Debentures in certificated form by check mailed to
the address of the Person entitled thereto as it appears in the Debenture
Register (or, upon written notice, by wire transfer in immediately available
funds, if such Person is entitled to interest on Debentures with an aggregate
principal amount in excess of $2,000,000) or (ii) on any Global Debenture by
wire transfer of immediately available funds to the account of the Depositary or
its nominee.

         The Company promises to pay interest on overdue principal, premium, if
any, and (to the extent that payment of such interest is enforceable under
applicable law) interest at the rate of 5.50%, per annum, compounded quarterly.

         Reference is made to the further provisions of this Debenture set forth
on the reverse hereof, including, without limitation, provisions giving the
holder of this Debenture the right to convert this Debenture into Common Stock
of the Company on the terms and subject to the limitations referred to on the
reverse hereof and as more fully specified in the Indenture. Such further
provisions shall for all purposes have the same effect as though fully set forth
at this place.

         This Debenture shall be deemed to be a contract made under the laws of
the State of New York, and for all purposes shall be construed in accordance
with and governed by the laws of the State of New York (including Section 5-1401
of the New York General Obligations Law or any successor to such statute).

         This Debenture shall not be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been manually signed
by the Trustee or a duly authorized authenticating agent under the Indenture.

                                      A-4

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Debenture to be duly
executed.

                                    THE WILLIAMS COMPANIES, INC.

                                    By: _______________________________________

Dated: May 28, 2003

      TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Debentures described in the within-named Indenture.

JPMORGAN CHASE BANK,
     as Trustee

By: ____________________________________________
        Authorized Signatory

                                      A-5

<PAGE>

                          FORM OF REVERSE OF DEBENTURE
                          THE WILLIAMS COMPANIES, INC.

            5.50% JUNIOR SUBORDINATED CONVERTIBLE DEBENTURE DUE 2033

         This Debenture is one of a duly authorized issue of Debentures of the
Company, designated as its 5.50% Junior Subordinated Convertible Debentures due
2033 (herein called the "DEBENTURES"), limited in aggregate principal amount to
$300,000,000, issued and to be issued under and pursuant to an Indenture dated
as of May 28, 2003 (herein called the "INDENTURE"), between the Company and
JPMorgan Chase Bank, as trustee (herein called the "TRUSTEE"), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the holders of the
Debentures.

         In case an Event of Default shall have occurred and be continuing, the
principal of, premium, if any, and accrued interest on all Debentures may be
declared by either the Trustee or the holders of not less than 25% in aggregate
principal amount of the Debentures then outstanding, and upon said declaration
shall become, due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture.

         The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the holders of at least a majority in aggregate
principal amount of the Debentures at the time outstanding, to execute
supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the holders of the
Debentures; provided that no such supplemental indenture shall (i) extend the
fixed maturity of any Debenture, or reduce the rate or extend the time of
payment of Interest, or reduce the principal amount thereof or premium, if any,
thereon, or reduce any amount payable upon redemption or repurchase thereof, or
impair the right of any Debentureholder to institute suit for the payment
thereof, or make the principal thereof or Interest or premium, if any, thereon
payable in any coin or currency other than that provided in the Debentures, or
change the obligation of the Company to redeem any Debenture on a Redemption
Date in a manner adverse to the holders of Debentures, or change the obligation
of the Company to repurchase any Debenture upon a Change of Control in a manner
adverse to the holders of the Debentures, or impair the right to convert the
Debentures into Common Stock subject to the terms set forth in the Indenture,
including Section 16.06 thereof, or reduce the number of shares of Common Stock
or other property receivable upon conversion, in each case without the consent
of the holder of each Debenture so affected, or modify any of the provisions of
Section 12.02 or Section 8.07 thereof, except to increase any such percentage or
to provide that certain other provisions of the Indenture cannot be modified or
waived without the consent of the holder of each Debenture so affected, or
reduce the quorum or voting requirements set

                                      A-6

<PAGE>

forth in Article 11 or (ii) reduce the aforesaid percentage of Debentures, the
holders of which are required to consent to any such supplemental indenture,
without the consent of the holders of all Debentures then outstanding. Subject
to the provisions of the Indenture, the holders of a majority in aggregate
principal amount of the Debentures at the time outstanding may on behalf of the
holders of all of the Debentures waive any past default or Event of Default
under the Indenture and its consequences except (A) a default in the payment of
Interest, or any premium on, or the principal of, any of the Debentures, (B) a
failure by the Company to convert any Debentures into Common Stock of the
Company, (C) a default in the payment of the Redemption Price pursuant to
Article 3 of the Indenture, (D) a default in the payment of the Repurchase Price
pursuant to Article 3 of the Indenture, or (E) a default in respect of a
covenant or provisions of the Indenture which under Article 12 of the Indenture
cannot be modified or amended without the consent of the holders of each or all
Debentures then outstanding or affected thereby. Any such consent or waiver by
the holder of this Debenture (unless revoked as provided in the Indenture) shall
be conclusive and binding upon such holder and upon all future holders and
owners of this Debenture and any Debentures which may be issued in exchange or
substitution hereof, irrespective of whether or not any notation thereof is made
upon this Debenture or such other Debentures.

         The indebtedness evidenced by the Debentures is, to the extent and in
the manner provided in the Indenture, expressly subordinated and subject in
right of payment to the prior payment in full of all Senior and Senior
Subordinated Indebtedness of the Company, whether outstanding at the date of the
Indenture or thereafter incurred, and this Debenture is issued subject to the
provisions of the Indenture with respect to such subordination. Each holder of
this Debenture, by accepting the same, agrees to and shall be bound by such
provisions and authorizes the Trustee on its behalf to take such action as may
be necessary or appropriate to effectuate the subordination so provided and
appoints the Trustee his attorney-in-fact for such purpose.

         No reference herein to the Indenture and no provision of this Debenture
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and any premium and
Interest on this Debenture at the place, at the respective times, at the rate
and in the coin or currency herein prescribed.

         Interest on the Debentures shall be computed on the basis of a 360-day
year of twelve 30-day months.

         So long as the Company is not in default in the payment of Interest on
the Debentures and so long as the Designated Agreement Termination Date has
occurred, the Company shall have the right, at any time during the term of the
Debentures, from time to time to extend an interest payment period with respect
to such Debentures for up to 20 consecutive quarterly interest periods (an
"EXTENDED INTEREST PAYMENT PERIOD"), at the end of which period the Company

                                      A-7

<PAGE>

shall pay all Interest then accrued and unpaid (together with interest thereon
at the rate of 5.50% per annum to the extent permitted by applicable law,
compounded quarterly ("COMPOUNDED INTEREST")); provided that no Extended
Interest Payment Period may extend beyond the Maturity Date or any Redemption
Date of the Debentures or end on a day other than an Interest Payment Date.
During such Extended Interest Payment Period, the Company shall not make any
Restricted Payment as provided in the Indenture. Prior to the termination of any
such Extended Interest Payment Period, the Company may pay all or any portion of
the interest accrued on the Debentures on any Interest Payment Date to holders
of record on the regular Record Date for such Interest Payment Date or from time
to time further extend such Extended Interest Payment Period; provided that such
Extended Interest Payment Period, including such extension and all further
extensions thereof, shall not exceed 20 consecutive quarterly interest periods.
Upon the termination of any such Extended Interest Payment Period and upon the
payment of all accrued and unpaid interest then due, together with Compounded
Interest, the Company may select a new Extended Interest Payment Period, subject
to the foregoing requirements. No interest on this Debenture shall be due and
payable during an Extended Interest Payment Period, except at the end thereof.
At the end of the Extended Interest Payment Period the Company shall pay all
interest accrued and unpaid on the Debentures including any Compounded Interest
which shall be payable to the holders of the Debentures in whose names the
Debentures are registered in the Debenture Register on the first Record Date
prior to the end of the Extended Interest Payment Period.

         The Debentures are issuable in fully registered form, without coupons,
in denominations of $50 principal amount and any multiple of $50. At the office
or agency of the Company referred to on the face hereof, and in the manner and
subject to the limitations provided in the Indenture, without payment of any
service charge but with payment of a sum sufficient to cover any tax, assessment
or other governmental charge that may be imposed in connection with any
registration or exchange of Debentures, Debentures may be exchanged for a like
aggregate principal amount of Debentures of any other authorized denominations.

         Beginning on June 1, 2010, if, for at least 20 Trading Days in the
period of 30 consecutive Trading Days ending on the Trading Day before the date
of mailing of the Redemption Notice pursuant to Section 3.02 of the Indenture
(including on the last day in such period), the Closing Sale Price of the Common
Stock shall have exceeded 130% of the Conversion Price in effect on the last
Trading Day of such period, the Company, at its option, may redeem the
Securities on a Redemption Date specified by the Company in accordance with
Article 3 of the Indenture for cash in whole or in part, at a redemption price
(the "REDEMPTION PRICE") equal to the principal amount of the Securities to be
redeemed together in each case with accrued and unpaid Interest (including
deferred interest) on the Securities redeemed to (but excluding) the Redemption
Date.

                                      A-8

<PAGE>

         In no event will any Security be redeemable at the option of the
Company before June 1, 2010.

         The Company may redeem Debentures only in whole and not in part if a
default in the payment of interest, or premium, if any, on the Debentures has
occurred and is continuing or during an Extended Interest Payment Period.

         The Debentures are not subject to redemption through the operation of
any sinking fund.

         If a Change of Control occurs at any time prior to maturity of the
Debentures, this Debenture will be repurchased at the option of the holder on
the Repurchase Date specified by the Company in accordance with the Indenture at
a Repurchase Price equal to 100% of the principal amount thereof, together with
accrued and unpaid Interest (including deferred interest) to but excluding the
Repurchase Date. The Debentures will be repurchased in multiples of $50
principal amount. The Company shall mail to all holders of record of the
Debentures a notice of the occurrence of a Change of Control and of the
repurchase right arising as a result thereof on or before the 30th day after the
occurrence of such Change of Control. For a Debenture to be so repurchased at
the option of the holder, the Company must receive at the office or agency of
the Company maintained for that purpose in accordance with the terms of the
Indenture, such Debenture with the form entitled "OPTION TO ELECT REPURCHASE
UPON A CHANGE OF CONTROL" on the reverse thereof duly completed, together with
such Debenture, duly endorsed for transfer, on or before the Repurchase Date

         Holders have the right to withdraw any such repurchase election by
delivering to the Trustee (or other Paying Agent appointed by the Company) a
written notice of withdrawal up to the close of business on the Business Day
preceding the Repurchase Date, all as provided in the Indenture.

         If cash sufficient to pay the Repurchase Price with respect to all
Debentures or portions thereof to be repurchased as of the Repurchase Date is
deposited with the Trustee (or other Paying Agent appointed by the Company) on
the Business Day following the Repurchase Date, interest will cease to accrue on
such Debentures (or portions thereof) on and after the Repurchase Date and the
holder thereof shall have no other rights as such other than the right to
receive the Repurchase Price upon surrender of such Debenture.

         In compliance with the provisions of the Indenture, prior to the final
Maturity Date of the Debentures, the holder hereof has the right, at its option,
to convert each $50 principal amount of the Debentures into 4.5907 shares of the
Company's Common Stock, as such shares shall be constituted at the date of
conversion and subject to adjustment from time to time as provided in the
Indenture, upon surrender of this Debenture with the form entitled "CONVERSION
NOTICE" on the reverse hereof duly completed, to the Company at the office or
agency of the Company maintained for that purpose in accordance with the terms

                                      A-9

<PAGE>

of the Indenture, or at the option of such holder, the Corporate Trust Office,
and, unless the shares issuable on conversion are to be issued in the same name
as this Debenture, duly endorsed by, or accompanied by instruments of transfer
in form satisfactory to the Company duly executed by, the holder or by his duly
authorized attorney.

         If the Company (i) is a party to a consolidation, merger, statutory
share exchange or combination, (ii) reclassifies the Common Stock, or (iii)
sells or conveys its properties and assets substantially as an entirety to any
Person, the right to convert a Security into shares of Common Stock may be
changed into a right to convert it into securities, cash or other assets of the
Company or such other Person, in each case in accordance with the Indenture.

         No adjustment in respect of interest on any Debenture converted or
dividends on any shares issued upon conversion of such Debenture will be made
upon any conversion except as set forth in the next sentence. If this Debenture
(or portion hereof) is surrendered for conversion during the period from the
close of business on any Record Date for the payment of Interest to the close of
business on the following Interest Payment Date, this Debenture (or portion
hereof being converted) must be accompanied by payment, in immediately available
funds or other funds acceptable to the Company, of an amount equal to the
Interest otherwise payable on such Interest Payment Date on the principal amount
being converted; provided that no such payment shall be required (1) if the
Company has specified a Redemption Date that is after a Record Date and prior to
the next Interest Payment Date, (2) if the Company has specified a Repurchase
Date following a Change of Control that is during such period or (3) to the
extent of any overdue interest, if any overdue interest exists at the time of
conversion with respect to such debenture.

         No fractional shares will be issued upon any conversion, but an
adjustment and payment in cash will be made, as provided in the Indenture, in
respect of any fraction of a share which would otherwise be issuable upon the
surrender of any Debenture or Debentures for conversion.

         A Debenture in respect of which a holder is exercising its right to
require repurchase upon a Change of Control may be converted only if such holder
withdraws its election to exercise such right in accordance with the terms of
the Indenture.

         Any Debentures called for redemption, unless surrendered for conversion
by the holders thereof on or before the close of business on the Business Day
preceding the Redemption Date, may be deemed to be redeemed from the holders of
such Debentures for an amount equal to the applicable Redemption Price, together
with accrued but unpaid Interest to, but excluding, the date fixed for
redemption, by one or more investment banks or other purchasers who may agree
with the Company (i) to purchase such Debentures from the holders thereof and

                                      A-10

<PAGE>

convert them into shares of the Company's Common Stock and (ii) to make payment
for such Debentures as aforesaid to the Trustee in trust for the holders.

         Upon due presentment for registration of transfer of this Debenture at
the office or agency of the Company maintained for that purpose in accordance
with the terms of the Indenture, a new Debenture or Debentures of authorized
denominations for an equal aggregate principal amount will be issued to the
transferee in exchange thereof, subject to the limitations provided in the
Indenture, without charge except for any tax, assessment or other governmental
charge imposed in connection therewith.

         The Company, the Trustee, any authenticating agent, any Paying Agent,
any Conversion Agent and any Debenture Registrar may deem and treat the
registered holder hereof as the absolute owner of this Debenture (whether or not
this Debenture shall be overdue and notwithstanding any notation of ownership or
other writing hereon made by anyone other than the Company or any Debenture
Registrar) for the purpose of receiving payment hereof, or on account hereof,
for the conversion hereof and for all other purposes, and neither the Company
nor the Trustee nor any other authenticating agent nor any Paying Agent nor
other Conversion Agent nor any Debenture Registrar shall be affected by any
notice to the contrary. All payments made to or upon the order of such
registered holder shall, to the extent of the sum or sums paid, satisfy and
discharge liability for monies payable on this Debenture.

         No recourse for the payment of the principal of or any premium or
Interest on this Debenture, or for any claim based hereon or otherwise in
respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or any supplemental indenture or in
any Debenture, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, stockholder, employee, agent,
officer or director or subsidiary, as such, past, present or future, of the
Company or of any successor corporation, either directly or through the Company
or any successor corporation, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise, all
such liability being, by acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

         This Debenture shall be deemed to be a contract made under the laws of
New York, and for all purposes shall be construed in accordance with the laws of
New York (including Section 5-1401 of the New York General Obligations Law or
any successor to such statute).

         Terms used in this Debenture and defined in the Indenture are used
herein as therein defined.

                                      A-11

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription of the face
of this Debenture, shall be construed as though they were written out in full
according to applicable laws or regulations.

<TABLE>
<S>           <C>                                             <C>
TEN COM -     as tenants in common                            UNIF GIFT MIN ACT -___ Custodian ___
TEN ENT -     as tenant by the entireties                     (Cust)   (Minor)
JT TEN -      as joint tenants with right of survivorship     under Uniform Gifts to Minors Act
              and not as tenants in common                    ____________________________
                                                                       (State)
</TABLE>

         Additional abbreviations may also be used though not in the above list.

<PAGE>

                                CONVERSION NOTICE

TO:      THE WILLIAMS COMPANIES, INC.

         The undersigned registered owner of this Debenture hereby irrevocably
exercises the option to convert this Debenture, or the portion thereof (which is
$50 or a multiple thereof) below designated, into shares of Common Stock of The
Williams Companies, Inc. in accordance with the terms of the Indenture referred
to in this Debenture, and directs that the shares issuable and deliverable upon
such conversion, together with any check in payment for fractional shares and
any Debentures representing any unconverted principal amount hereof, be issued
and delivered to the registered holder hereof unless a different name has been
indicated below. Capitalized terms used herein but not defined shall have the
meanings ascribed to such terms in the Indenture. If shares or any portion of
this Debenture not converted are to be issued in the name of a person other than
the undersigned, the undersigned will provide the appropriate information below
and pay all transfer taxes payable with respect thereto. Any amount required to
be paid by the undersigned on account of interest accompanies this Debenture.

Dated: ______________________

                                              __________________________________

                                              __________________________________
                                              Signature(s)

                                              Signature(s) must be guaranteed by
                                              an "ELIGIBLE GUARANTOR
                                              INSTITUTION" meeting the
                                              requirements of the Debenture
                                              Registrar, which requirements
                                              include membership or
                                              participation in the Security
                                              Transfer Agent Medallion Program
                                              ("STAMP") or such other "SIGNATURE
                                              GUARANTEE PROGRAM" as may be
                                              determined by the Debenture
                                              Registrar in addition to, or in
                                              substitution for, STAMP, all in
                                              accordance with the Securities
                                              Exchange Act of 1934, as amended.

                                              __________________________________
                                              Signature Guarantee

<PAGE>

         Fill in the registration of shares of Common Stock if to be issued, and
Debentures if to be delivered, other than to and in the name of the registered
holder:

____________________________
(Name)

_______________________________
(Street Address)

_______________________________
(City, State and Zip Code)

_______________________________
Please print name and address

Principal amount to be converted
(if less than all):

$_______________________________

Social Security or Other Taxpayer
Identification Number:

_______________________________

<PAGE>

                           OPTION TO ELECT REPURCHASE
                            UPON A CHANGE OF CONTROL

TO:      THE WILLIAMS COMPANIES, INC.

         The undersigned registered owner of this Debenture hereby irrevocably
acknowledges receipt of a notice from The Williams Companies, Inc. (the
"COMPANY") as to the occurrence of a Change of Control with respect to the
Company and requests and instructs the Company to repurchase the entire
principal amount of this Debenture, or the portion thereof (which is $50 or a
multiple thereof) below designated, in accordance with the terms of the
Indenture referred to in this Debenture at the price of 100% of such entire
principal amount or portion thereof, together with accrued interest (including
deferred interest) to, but excluding, the Repurchase Date, to the registered
holder hereof. Capitalized terms used herein but not defined shall have the
meanings ascribed to such terms in the Indenture.

Dated: ______________________

                                              __________________________________

                                              __________________________________
                                              Signature(s)

                                              NOTICE: The above signatures of
                                              the holder(s) hereof must
                                              correspond with the name as
                                              written upon the face of the
                                              Debenture in every particular
                                              without alteration or enlargement
                                              or any change whatever.

                                              Principal amount to be repaid
                                              (if less than all):

                                              __________________________________

                                              __________________________________
                                              Social Security or Other Taxpayer
                                              Identification Number

<PAGE>

                                   ASSIGNMENT

         For value received ______________________________hereby sell(s)
assign(s) and transfer(s) unto ___________________________________ (Please
insert social security or other Taxpayer Identification Number of assignee) the
within Debenture, and hereby irrevocably constitutes and appoints
______________________________________ attorney to transfer said Debenture on
the books of the Company, with full power of substitution in the premises.

         In connection with any transfer of the Debenture prior to the
expiration of the holding period applicable to sales thereof under Rule 144(k)
under the Securities Act (or any successor provision) (other than any transfer
pursuant to a registration statement that has been declared effective under the
Securities Act), the undersigned confirms that such Debenture is being
transferred:

         [ ]      To The Williams Companies, Inc. or a subsidiary thereof; or

         [ ]      To a "QUALIFIED INSTITUTIONAL BUYER" in compliance with Rule
                  144A under the Securities Act of 1933, as amended; or

         [ ]      Pursuant to and in compliance with Rule 144 under the
                  Securities Act of 1933, as amended; or

         [ ]      Pursuant to a Registration Statement which has been declared
                  effective under the Securities Act of 1933, as amended, and
                  which continues to be effective at the time of transfer;

and unless the Debenture has been transferred to The Williams Companies, Inc. or
a subsidiary thereof, the undersigned confirms that such Debenture is not being
transferred to an "AFFILIATE" of the Company as defined in Rule 144 under the
Securities Act of 1933, as amended.

         Unless one of the boxes is checked, the Trustee will refuse to register
any of the Debentures evidenced by this certificate in the name of any person
other than the registered holder thereof.

Dated: ______________________

                                              __________________________________

                                              __________________________________
                                              Signature(s)

                                              Signature(s) must be guaranteed by
                                              an "ELIGIBLE GUARANTOR
                                              INSTITUTION"

<PAGE>

                                              meeting the requirements of the
                                              Debenture Registrar, which
                                              requirements include membership or
                                              participation in the Security
                                              Transfer Agent Medallion Program
                                              ("STAMP") or such other "SIGNATURE
                                              GUARANTEE PROGRAM" as may be
                                              determined by the Debenture
                                              Registrar in addition to, or in
                                              substitution for, STAMP, al in
                                              accordance with the Securities
                                              Exchange Act of 1934, as amended.

                                              __________________________________
                                              Signature Guarantee

NOTICE: The signature on the Conversion Notice, the Option to Elect Repurchase
Upon a Change of Control or the Assignment must correspond with the name as
written upon the face of the Debenture in every particular without alteration or
enlargement or any change whatever.

<PAGE>

                                                                      Schedule I

                [Include Schedule I only for a Global Debenture]

            5.50% Junior Subordinated Convertible Debenture due 2033

No.  _______

<TABLE>
<CAPTION>
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</TABLE>

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