Document:

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                                                                   EXHIBIT 10.41

                     FIRST AMENDMENT TO SETTLEMENT AGREEMENT

          THIS FIRST AMENDMENT dated as of August 13 , 2002 (the "Amendment") to
the Settlement Agreement (the "Agreement") dated as of July 26, 2002, by and
among The Williams Companies Inc. ("TWC", and, collectively with its direct and
indirect subsidiaries, the "TWC Entities") Williams Communications Group, Inc.
("WCG" and, collectively with its direct and indirect subsidiaries, the
"Company" or the "WCG Entities") and CG Austria, Inc. ("CG Austria") each as a
debtor and debtor in possession in cases commenced (the "Chapter 11 Cases")
under chapter 11 of title 11 of the United States Code (the "Bankruptcy Code")
in the United States Bankruptcy Court for the Southern District of New York (the
"Bankruptcy Court") the official committee of unsecured creditors (the
"Committee") appointed in the Chapter 11 Cases; and Leucadia National
Corporation ("Leucadia") (collectively, the "Parties"). All capitalized terms
not otherwise defined herein shall have the meanings given to such terms in the
Agreement.

          WHEREAS, the parties wish to modify the provisions in the Agreement
relating to the payment of the purchase price under the Building Purchase
Agreement.

          NOW, THEREFORE, in consideration of the foregoing premises and the
mutual promises and obligations contained herein, the Parties hereto hereby
agree as follows:

         1. The twenty-second Whereas clause is hereby deleted in its entirety
and replaced with the following:

                  WHEREAS, Leucadia's willingness to make the New Investment and
                  purchase the 1'WC claims is conditioned on (i) the Parties'
                  entry into, and the Bankruptcy Court's approval of, this
                  Agreement, which provides for the settlement of all disputes
                  between the Company, the Committee, and the TWC Entities, on
                  the terms and conditions set forth herein and in the related
                  agreements annexed hereto and made a part hereof; (ii) the
                  implementation of the transactions contemplated hereby
                  (including the repurchase of the Headquarters Building and
                  related assets for an aggregate amount of $150 million secured
                  by a mortgage) and (iii) the confirmation and consummation of
                  the Plan, including the entry of a channeling injunction as
                  set forth herein;

         2. Section 1(b) of the Agreement is hereby deleted in its entirety and
replaced with the following:

                  (b) The Building Purchase. In accordance with the Building
                      Purchase Agreement, WHBC shall transfer and convey the
                      Building Purchase Assets to WTC for the execution and
                      delivery of (i) an 18-month promissory note made payable
                      (with full recourse) by WTC and New WCG (as co-issuers)
                      and guaranteed by WCL in the original principal amount of
                      $50 million (subject to an adjustment for certain unfunded
                      obligations owed by TWC as set forth in the Building
                      Purchase Agreement), with interest at the rate of 10% per
                      annum and principal to be amortized over the term of the
                      note, (ii) a 7 1/2-year promissory note made payable (with
                      full recourse) by WTC and New WCG (as co-issuers) and
                      guaranteed by WCL in the original principal amount of $100
                      million (subject to reduction upon certain Dispositions as
                      provided and defined in the Building Purchase Agreement),
                      with interest at the rate of 7% per annum and principal to
                      be amortized on the basis of a 30-year schedule, such
                      notes to be in a form mutually agreed upon by the Debtors,
                      TWC, the Committee, and Leucadia (collectively (i) and
                      (ii), the "Building Purchase Notes") and (iii) various
                      documents, instruments, agreements and mortgages granting
                      to WHBC a first lien and security interest in and

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                      to all Building Purchase Assets to secure payment of the
                      Building Purchase Notes, all of which shall be in a form
                      to be mutually agreed upon by the Debtors, TWC, the
                      Committee, and Leucadia (the "Building Purchase Collateral
                      Documents"). In connection with the closing of the
                      Building Purchase Agreement, the Lenders shall be granted
                      a fully subordinated, second priority lien on the Building
                      Purchase Assets, the terms of which shall be mutually
                      agreed upon by the Debtors, TWC, Leucadia, the Committee
                      and the Administrative Agent (the "Lender Second
                      Mortgage").

         3. The definition of "Building Purchase Agreement" in the Glossary of
Settlement Agreement Defined Terms shall be deleted in its entirety and replaced
with the following:

                      "Building Purchase Agreement" means the agreement dated as
                      of July 26, 2002, a true and correct copy of which is
                      annexed hereto as Exhibit 4, pursuant to which, as a
                      component of the TWC Settlement, WTC shall purchase, the
                      Building Purchase Assets from WHBC, as such agreement is
                      amended from time to time.

         4. All references in the Agreement to "Building Purchase Note" shall be
replaced with the term "Building Purchase Notes", as defined in this Amendment.

         5. This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the
same instrument.

         6. Except as specifically amended hereby, the Agreement is in all
respects confirmed, ratified and approved.

         IN WITNESS WHEREOF, the Parties hereto have executed this Amendment on
and as of the date and year first above written.

                            [SIGNATURE PAGES FOLLOW]

                                        2

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WILLIAMS COMMUNICATIONS GROUP, INC.          THE OFFICIAL COMMITTEE OF UNSECURED
                                             CREDITORS BY: R(2) INVESTMENTS, LC;
                                             BY: AMALGAMATED GADGET, L.P., AS
                                                 INVESTMENT MANAGER;
                                             BY: SCEPTOR HOLDINGS, INC., ITS
                                                 GENERAL PARTNER

                                                  /s/ DAVID GILLESPIE
BY:                                          BY:  David Gillespie
    ------------------------------
Its:                                         Its:  CFO

CG AUSTRIA, INC.                             LEUCADIA NATIONAL CORPORATION

----------------------------------           -----------------------------------
By:                                          By:
    ------------------------------               -------------------------------
Its:                                         Its:
     -----------------------------                ------------------------------

                                             THE WILLIAMS COMPANIES, INC.

                                             -----------------------------------
                                             By:
                                                 -------------------------------
                                             Its:
                                                  ------------------------------

<PAGE>
WILLIAMS COMMUNICATIONS GROUP, INC.         THE OFFICIAL COMMITTEE OF UNSECURED
                                            CREDITORS

(signature illegible)
                     -------------          ------------------------------------

CG AUSTRIA, INC.                            LEUCADIA NATIONAL CORPORATION

(signature illegible)
                     -------------          ------------------------------------
By:                                         By:
    ------------------------------              --------------------------------
Its:                                        Its:
     -----------------------------               -------------------------------

                                            THE WILLIAMS COMPANIES, INC.

                                            ------------------------------------
                                            By:
                                                --------------------------------
                                            Its:
                                                 -------------------------------

<PAGE>

WILLIAMS COMMUNICATIONS GROUP, INC.          THE OFFICIAL COMMITTEE OF UNSECURED
                                             CREDITORS

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

CG AUSTRIA, INC.                             LEUCADIA NATIONAL CORPORATION

----------------------------------           -----------------------------------
By:                                          By:
    ------------------------------               -------------------------------
Its:                                         Its:
     -----------------------------                ------------------------------

                                             THE WILLIAMS COMPANIES, INC.

                                                 /s/ JACK D. MCCARTHY
                                             By:     JACK D. MCCARTHY
                                                 -------------------------------
                                             Its: Senior Vice President, Chief
                                                  Financial Officer

<PAGE>

WILLIAMS COMMUNICATIONS GROUP, INC.          THE OFFICIAL COMMITTEE OF UNSECURED
                                             CREDITORS

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

CG AUSTRIA, INC.                            LEUCADIA NATIONAL CORPORATION

-----------------------------------             /s/ JOSEPH A. ORLANDO
By:                                         By:     Joseph A. Orlando
    -------------------------------             --------------------------------
Its:                                        Its: Vice President
     ------------------------------

                                            THE WILLIAMS COMPANIES, INC.

                                            ------------------------------------
                                            By:
                                                --------------------------------
                                            Its:
                                                 -------------------------------<PAGE>
                                                                   EXHIBIT 10.42

                    SECOND AMENDMENT TO SETTLEMENT AGREEMENT

         THIS SECOND AMENDMENT dated as of September 30, 2002 (the "Amendment")
to the Settlement Agreement (the "Agreement") dated as of July 26, 2002, as
amended, by and among The Williams Companies Inc. ("TWC", and, collectively with
its direct and indirect subsidiaries, the "TWC Entities") Williams
Communications Group, Inc. ("WCG" and, collectively with its direct and indirect
subsidiaries, the "Company" or the "WCG Entities") and CG Austria, Inc. ("CG
Austria") each as a debtor and debtor in possession in cases commenced (the
"Chapter 11 Cases") under chapter 11 of title 11 of the United States Code (the
"Bankruptcy Code") in the United States Bankruptcy Court for the Southern
District of New York (the "Bankruptcy Court") the official committee of
unsecured creditors (the "Committee") appointed in the Chapter 11 Cases; and
Leucadia National Corporation ("Leucadia") (collectively, the "Parties"). All
capitalized terms not otherwise defined herein shall have the meanings given to
such terms in the Agreement.

         WHEREAS, the parties wish to modify the provisions in the Agreement
relating to the payment of the purchase price under the Building Purchase
Agreement.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual promises and obligations contained herein, the Parties hereto hereby
agree as follows:

         1. Section 1(b) of the Agreement is hereby deleted in its entirety and
replaced with the following:

              (b) The Building Purchase. In accordance with the Building
                  Purchase Agreement, WKBC shall transfer and convey the
                  Building Purchase Assets to WTC for the consideration
                  specified therein. WTC's obligations to WHBC under the
                  Building Purchase Agreement will be evidenced by (i) a long
                  term note in the original principal amount of $100,000,000,
                  and (ii) a short term note in the accreted principal amount of
                  $74,360,295.30 (collectively, the "Building Purchase Notes").
                  The obligations under the Building Purchase Notes will be
                  secured by the following (the documents evidencing the
                  following will be referred to, collectively, as the "Building
                  Purchase Collateral Documents"): (a) a first priority mortgage
                  on and lien in the Building Purchase Assets (specifically
                  including all furniture, fixtures and equipment (other than
                  certain equipment related to or used in connection with WCG's
                  network)), and (b) a fully subordinated, second priority lien
                  on 66% of the stock of Wiltel Communications Pty Limited, an
                  Australian subsidiary of a new, domestic, wholly owned
                  subsidiary of WCLLC, which lien shall be subject to a mutually
                  agreeable Intercreditor Agreement between WHBC and the
                  Administrative Agent (as defined in the Plan) on behalf of the
                  Lenders. In connection with the closing of the Building
                  Purchase Agreement, the Administrative Agent for the benefit
                  of the secured parties,

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                  including, without limitation, the Lenders, shall be granted a
                  fully subordinated, second priority lien and mortgage on the
                  Building Purchase Assets (the "Lender Second Mortgage").

         2. The definition of "Building Purchase Agreement" in the Glossary of
Settlement Agreement Defined Terms shall be deleted in its entirety and replaced
with the following:

                  "Building Purchase Agreement" means the agreement dated as of
                  July 26, 2002, a true and correct copy of which is annexed
                  hereto as Exhibit 4, pursuant to which, as a component of the
                  TWC Settlement, WTC shall purchase, the Building Purchase
                  Assets from WHBC, as such agreement is amended from time to
                  time.

         3. This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the
same instrument.

         4. Except as specifically amended hereby, the Agreement is in all
respects confirmed, ratified and approved.

         IN WITNESS WHEREOF, the Parties hereto have executed this Amendment on
and as of the date and year first above written.

                            [Signature Pages Follow]

                                        2
<PAGE>
WILLIAMS COMMUNICATIONS GROUP, INC.            THE OFFICIAL COMMITTEE OF
                                                  UNSECURED CREDITORS

-------------------------------                (signature illegible)
By:                                            By: Kirkland & Ellis
   ----------------------------                Its:  Counsel
Its:
    ---------------------------

CG AUSTRIA, INC.                               LEUCADIA NATIONAL CORPORATION

-------------------------------                ---------------------------------
By:                                            By:
   ----------------------------                   ------------------------------
Its:                                           Its:
    ---------------------------                    -----------------------------

                                               THE WILLIAMS COMPANIES, INC.

                                               ---------------------------------
                                               By:
                                                  ------------------------------
                                               Its:
                                                   -----------------------------

<PAGE>
WILLIAMS COMMUNICATIONS GROUP, INC.   THE OFFICIAL COMMITTEE OF UNSECURED
                                      CREDITORS BY: AMALGAMATED GADGET, L.P., AS
                                      INVESTMENT;  BY: SCEPTOR HOLDINGS, INC.,
                                      ITS GENERAL PARTNER;
                                      BY: David R. Gillespie, CFO

/s/ HOWARD S. KALIKA                  /s/ DAVID GILLESPIE
BY: HOWARD S. KALIKA                  BY: R2 INVESTMENTS, LPC
Its: Vice President                   Its: CHAIRPERSON

CG AUSTRIA, INC.                      LEUCADIA NATIONAL CORPORATION
/s/  Howard S. Kalika                 /s/ Joseph A. Orlando
By:  Howard S. Kalika                 By: Joseph A. Orlando
     -----------------------------    ------------------------------------------
Its:  Vice President and Treasurer    Its:  Vice President & CFO

                                      THE WILLIAMS COMPANIES, INC.

                                      /s/ JACK D. MCCARTHY
                                      By: Jack D. McCarthy
                                          --------------------------------------
                                      Its: Senior Vice President and
                                           Chief Financial Officer

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