Document:

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                                                                   EXHIBIT 4(kk)

                     FIRST AMENDMENT TO TERM LOAN AGREEMENT

         THIS FIRST AMENDMENT TO TERM LOAN AGREEMENT (the "AMENDMENT") is
entered into as of August 21, 2000, among The Williams Companies, Inc., a
Delaware corporation (the "COMPANY"), Credit Lyonnais New York Branch, as
Administrative Agent (in such capacity, "ADMINISTRATIVE AGENT"), and certain
LENDERS (herein so called) named on SCHEDULE 2.1 (as amended and supplemented
from time to time) of the Term Loan Agreement (as hereinafter defined).

                                    RECITALS

         A. The Company, Lenders, Commerzbank AG New York and Cayman Island
Branches, as Syndication Agent, The Bank of Nova Scotia, as Documentation Agent,
and Administrative Agent entered into that certain Term Loan Agreement dated as
of April 7, 2000 (the "TERM LOAN AGREEMENT"). Unless otherwise indicated herein,
all terms used with their initial letter capitalized are used herein with their
meaning as defined in the Term Loan Agreement, and all Section references are to
Sections in the Term Loan Agreement.

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

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

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

PARAGRAPH 1. AMENDMENTS TO CREDIT AGREEMENT. The Term Loan Agreement is hereby
amended, as follows:

         1.1 Definitions.

         (a) Subparagraph(c)(i) of the definition of "CASH HOLDINGS" appearing
         in SECTION 1.1 is amended, in its entirety, to read as follows:

                           "(i) a corporation (other than an Affiliate of the
                           Company) rated (x) A-1 by S&P, P-1 by Moody's or F-1
                           by Fitch or (y) lower than set forth in the
                           immediately preceding CLAUSE (x), provided, however,
                           that the value of all such commercial paper shall not
                           exceed 10% of the total value of all commercial paper
                           comprising "Cash Holdings," or"

         (b) The definition of "CONSOLIDATED" appearing in Section 1.1 is
         amended, in its entirety, to read as follows:

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                           "CONSOLIDATED" refers to the consolidation of the
                           accounts of any Person and its subsidiaries in
                           accordance with generally accepted accounting
                           principles; provided

                           that, unless otherwise provided, in the case of the
                           Company, "CONSOLIDATED" shall mean the consolidation
                           of the accounts of the Company and its Subsidiaries
                           and shall not include any accounts of the WCG
                           Subsidiaries; provided that for purposes of the
                           Consolidated financial statements required to be
                           delivered pursuant to Sections 7.5, 8.2(b) and 8.2(c)
                           and where otherwise provided, the consolidation of
                           the accounts of the Company and its subsidiaries
                           shall include the WCG Subsidiaries.

         (c) The definitions of "CHOICESEAT", "DUFF AND PHELPS", "WFS" AND "WPL"
         in Section 1.1 are hereby deleted in their entirety.

         (d) Section 1.1 is further amended by adding the following new
         definitions thereto, such definitions to appear in appropriate
         alphabetical order therein:

                           "AMERICAN SODA" means American Soda, L.L.P., a
                           Colorado limited liability partnership.

                           "CONSOLIDATING" refers to, with respect to the
                           balance sheets and statements of income and cash flow
                           required by Sections 7.5, 8.2(b) and 8.2(c), the
                           consolidation of the accounts of the Company and its
                           subsidiaries in accordance with the following format:
                           (i) the WCG Subsidiaries, (ii) the Company and its
                           subsidiaries (which term does not include the WCG
                           Subsidiaries), (iii) consolidation adjustments, and
                           (iv) Consolidated financial statements of the Company
                           and each of its subsidiaries, including the WCG
                           Subsidiaries.

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

                           "WCG SUBSIDIARIES" means, collectively, WCG and any
                           direct or indirect Subsidiary of WCG.

         (e) The definitions of "CONSOLIDATED NET WORTH", "DEBT", "DESIGNATED
         MINORITY INTERESTS", "ENVIRONMENT", "FITCH", "NET DEBT" and "PUBLIC
         FILINGS" appearing in SECTION 1.1 are amended, in their entirety, to
         read as follows:

                           "CONSOLIDATED NET WORTH" of any Person means the Net
                           Worth of such Person and its Subsidiaries on a
                           consolidated basis plus, in the case of the Company,
                           the Designated Minority Interests to the extent not
                           otherwise included; provided that, in no event shall
                           the value ascribed to Designated Minority Interests
                           exceed $136,892,000 in the aggregate.

                           "DEBT" means, in the case of any Person, (i)
                           indebtedness of such Person for borrowed money, (ii)
                           obligations of such Person evidenced by bonds,
                           debentures or notes, (iii) obligations of such Person
                           to pay the deferred purchase price of property or
                           services (other than trade payables not overdue by
                           more than sixty

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                           (60) days incurred in the ordinary course of
                           business), (iv) monetary obligations of such Person
                           as lessee under leases that are, in accordance with
                           generally accepted accounting principles, recorded as
                           capital leases, (v) obligations of such Person under
                           guaranties in respect of, and obligations (contingent
                           or otherwise) to purchase or otherwise acquire, or
                           otherwise to assure a creditor against loss in
                           respect of, indebtedness or obligations of others of
                           the kinds referred to in clauses (i) through (iv) of
                           this definition, and (vi) indebtedness or obligations
                           of others of the kinds referred to in clauses (i)
                           through (v) of this definition secured by any Lien on
                           or in respect of any property of such Person;
                           provided, however, that Debt shall not include any
                           obligation under or resulting from any agreement
                           referred to in paragraph (y) of SCHEDULE I; and
                           provided further, it is the understanding of the
                           parties hereto that Debt shall not include any
                           monetary obligations or guaranties of monetary
                           obligations of Persons as lessee under leases that
                           are, in accordance with GAAP, recorded as operating
                           leases.

                           "DESIGNATED MINORITY INTERESTS" of the Company means,
                           as of any date of determination, the total of the
                           minority interests in the following Subsidiaries of
                           the Company (i) El Furrial, (ii) PIGAP II, (iii)
                           Nebraska Energy, (iv) Seminole, (v) American Soda and
                           (vi) other Subsidiaries of the Company as presented
                           in its Consolidating balance sheet, in an amount not
                           to exceed in the aggregate $9,000,000 for such other
                           Subsidiaries not referred to in CLAUSES (i) through
                           (v) of this definition; provided that minority
                           interests which provide for a stated preferred
                           cumulative return shall not be included in
                           "Designated Minority Interests".

                           "ENVIRONMENT" shall have the meaning set forth in 42
                           U.S.C. Section 9601(8) or any successor statute, and
                           "ENVIRONMENTAL" shall mean pertaining or related to
                           the Environment.

                           "FITCH" means Fitch, Inc.

                           "NET DEBT" means as of any date of determination, the
                           excess of (x) the aggregate amount of all Debt of the
                           Company and its Subsidiaries on a Consolidated basis,
                           excluding Non-Recourse Debt, over (y) the sum of the
                           Cash Holdings of the Company and its Subsidiaries on
                           a Consolidated basis.

                           "PUBLIC FILINGS" means the Company's annual report on
                           Form 10-K/A for the year ended December 31, 1999, and
                           its quarterly report on Form 10-Q for the quarter
                           ended March 31, 2000.

         (f) The definition of "NON-RECOURSE DEBT" appearing in SECTION 1.1 is
         amended by adding the following sentence at the end thereof:

                           "For purposes of this definition, a "non-material
                           Subsidiary" shall mean any Subsidiary of the Company
                           which, as of the date of the most recent
                           Consolidating balance sheet of the Company delivered
                           pursuant to Section 8.2 as

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                           described in clause (ii) of the definition of
                           "Consolidating," has total assets which account for
                           less than five percent (5%) of the total assets of
                           the Company and its Subsidiaries, as shown in the
                           column described in clause (ii) of the definition of
                           "Consolidating" of such Consolidating balance sheet;
                           provided that, the total aggregate assets of
                           non-material Subsidiaries shall not comprise at any
                           time more than ten percent (10%) of the total assets
                           of the Company and its Subsidiaries, as shown in such
                           column of such Consolidating balance sheet."

         (g) The definitions of "PLAN", "PRIMARY CREDIT AGREEMENT", "PRINCIPAL
         SUBSIDIARIES" and "S&P" appearing in SECTION 1.1 are amended, in their
         entirety, to read as follows:

                           "PLAN" means an employee pension benefit plan (other
                           than a Multiemployer Plan) as defined in Section 3(2)
                           of ERISA currently maintained by, or, in the event
                           such plan has terminated, to which contributions have
                           been made or an obligation to make contributions has
                           accrued, during any of the five (5) plan years
                           preceding the date of termination of such plan by the
                           Company or any ERISA Affiliate for employees of the
                           Company or any such ERISA Affiliate and covered by
                           Title IV of ERISA or subject to the minimum funding
                           standards under Section 412 of the Code.

                           "PRIMARY CREDIT AGREEMENT" means the U.S.
                           $700,000,000 Credit Agreement dated as of July 25,
                           2000, by and among the Company and the other
                           borrowers named therein, as borrowers, the banks
                           named therein, as lenders, the banks named therein,
                           as co-syndication agents and documentation agent,
                           Citibank, N.A., as agent, and Salomon Smith Barney as
                           arranger, as the same may be from time to time
                           modified or amended.

                           "PRINCIPAL SUBSIDIARIES" means a collective reference
                           to NWP, TGPL, TGT, and WPC (each a "PRINCIPAL
                           SUBSIDIARY").

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

         (h) The definition of "SUBSIDIARY" appearing in SECTION 1.1 is amended
         by adding the following sentence at the end thereof:

                           "Notwithstanding the above, "Subsidiary" shall not
                           include the WCG Subsidiaries, except that with
                           respect to the Consolidated balance sheet and related
                           Consolidated statements of income and cash flows for
                           the Company referred to in Sections 7.5, 8.2(b) and
                           8.2(c) and as otherwise specifically provided herein
                           the term "Subsidiary" used with respect to the
                           Company shall include the WCG Subsidiaries."

         (i) The definition of "TERMINATION EVENT" appearing in SECTION 1.1 is
         amended by deleting the phrase "or an event described in Section
         4062(f) of ERISA" from clause (a) thereof.

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                  1.2 Amendment to SECTION 7.1. SECTION 7.1 is amended by adding
         the word "material" before the word "Subsidiary" in the second and
         third sentences thereof.

                  1.3 Amendment to SECTION 7.6. SECTION 7.6 is amended to add
         the phrase "(including for the purposes of this SECTION 7.6, any WCG
         Subsidiary)" after the word "Subsidiary" appearing therein.

                  1.4 Amendment to SECTION 7.8. SECTION 7.8 is amended, in its
         entirety, to read as follows:

                                    "7.8 ERISA Compliance. No Termination Event
                           has occurred or is reasonably expected to occur with
                           respect to any Plan that could reasonably be expected
                           to have a material adverse effect on the Company or
                           any of its material Subsidiaries (including for the
                           purposes of this SECTION 7.8, the WCG Subsidiaries).
                           Neither the Company nor any ERISA Affiliate has
                           received any notification that any Multiemployer Plan
                           is in reorganization or has been terminated, within
                           the meaning of Title IV of ERISA, and the Company is
                           not aware of any reason to expect that any
                           Multiemployer Plan is to be in reorganization or to
                           be terminated within the meaning of Title IV of ERISA
                           that could reasonably be expected to have a material
                           adverse effect on the Company or any of its material
                           Subsidiaries (including for the purposes of this
                           SECTION 7.8, the WCG Subsidiaries) or any ERISA
                           Affiliate."

                  1.5 Amendment to SECTION 7.9. SECTION 7.9 is amended by
         deleting the phrase "(other than material Subsidiaries not in existence
         on December 31, 1995)" appearing in the first sentence thereof.

                  1.6 Amendment to SECTION 7.11. SECTION 7.11 is amended, in its
         entirety, to read as follows:

                                    "7.11 Environmental Compliance Except as set
                           forth in the Public Filings or as otherwise disclosed
                           in writing to the Administrative Agent after the date
                           hereof and approved by the Administrative Agent and
                           the Determining Lenders, the Company and its material
                           Subsidiaries are in compliance in all material
                           respects with all Environmental Protection Statutes
                           to the extent material to their respective operations
                           or financial condition. Except as set forth in the
                           Public Filings or as otherwise disclosed in writing
                           to the Administrative Agent after the date hereof and
                           approved by the Administrative Agent and the
                           Determining Lenders, the aggregate contingent and
                           non-contingent liabilities of the Company and its
                           Subsidiaries (other than those reserved for in
                           accordance with GAAP and set forth in the financial
                           statements regarding the Company referred to in
                           SECTION 7.5 and delivered to the Administrative Agent
                           and excluding liabilities to the extent covered by
                           insurance if the insurer has confirmed that such
                           insurance covers such liabilities or which the
                           Company reasonably expects to recover from
                           ratepayers) which are reasonably expected to arise in
                           connection with (a) the requirements of Environmental
                           Protection Statutes or (b) any obligation or
                           liability to any Person in connection with any

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                           Environmental matters (including, without limitation,
                           any release or threatened release (as such terms are
                           defined in the Comprehensive Environmental Response,
                           Compensation and Liability Act of 1980) of any
                           Hazardous Waste, Hazardous Substance, other waste,
                           petroleum or petroleum products into the Environment)
                           could not reasonably be expected to have a material
                           adverse effect on the business, assets, condition or
                           operations of the Company and its Subsidiaries
                           (including for the purposes of this SECTION 7.11, the
                           WCG Subsidiaries), taken as a whole."

                  1.7 Amendment to SECTION 7.12(b). SECTION 7.12(b) is amended
         to add the phrase "(including for the purposes of this SECTION 7.12(b),
         the WCG Subsidiaries)' after the word "Subsidiaries" appearing in the
         last sentence thereof.

                  1.8 Amendment to SECTION 8.2. Subsections (b), (c), (e), (f)
         and (i) of SECTION 8.2 are amended, in their respective entireties, to
         read as follows:

                                            "(b) as soon as available and in any
                           event not later than sixty (60) days after the end of
                           each of the first three quarters of each fiscal year
                           of the Company, the Consolidated and Consolidating
                           balance sheets of the Company and its Subsidiaries as
                           of the end of such quarter and the Consolidated and
                           Consolidating statements of income and cash flows of
                           the Company and its Subsidiaries for the period
                           commencing at the end of the previous year and ending
                           with the end of such quarter, all in reasonable
                           detail and duly certified (subject to year-end audit
                           adjustments) by an authorized financial officer of
                           the Company as having been prepared in accordance
                           with GAAP, provided that, if any financial statement
                           referred to in this SECTION 8.2(b) is readily
                           available on-line through EDGAR, the Company shall
                           not be obligated to furnish copies of such financial
                           statement. An authorized financial officer of the
                           Company shall furnish a certificate (i) stating that
                           he has no knowledge that a Default or Potential
                           Default has occurred and is continuing or, if a
                           Default or Potential Default has occurred and is
                           continuing, a statement as to the nature thereof and
                           the action, if any, which the Company proposes to
                           take with respect thereto, and (ii) showing in detail
                           the calculation supporting such statement in respect
                           of SECTION 8.6; provided that, for purposes of
                           Subsections (b) and (c) of this SECTION 8.2,
                           "Subsidiaries" when used in relation to a
                           Consolidated balance sheet and the related statement
                           of income and cash flow shall include the WCG
                           Subsidiaries;"

                                    "(c) as soon as available and in any event
                           not later than one hundred five (105) days after the
                           end of each fiscal year of the Company, a copy of the
                           annual audit report for such year for the Company and
                           its Subsidiaries, including therein Consolidated and
                           Consolidating balance sheets of the Company and its
                           Subsidiaries as of the end of such fiscal year and
                           Consolidated and Consolidating statements of income
                           and cash flows of the Company and its Subsidiaries
                           for such fiscal year, in each case prepared in
                           accordance with GAAP and certified by Ernst & Young,
                           LLP or other independent certified public accountants
                           of

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                           recognized standing acceptable to the Administrative
                           Agent, provided that if any financial statement
                           referred to in this SECTION 8.2(c) is readily
                           available on-line through EDGAR, the Company shall
                           not be obligated to furnish copies of such financial
                           statement. The Company shall also deliver in
                           conjunction with such financial statements a
                           certificate of such accounting firm to the
                           Administrative Agent (i) stating that, in the course
                           of the regular audit of the business of the Company
                           and its Subsidiaries, which audit was conducted by
                           such accounting firm in accordance with generally
                           accepted auditing standards, such accounting firm has
                           obtained no knowledge that a Default or Potential
                           Default has occurred and is continuing, or if, in the
                           opinion of such accounting firm, a Default or
                           Potential Default has occurred and is continuing, a
                           statement as to the nature thereof, and (ii) showing
                           in detail the calculations supporting such statement
                           in respect of SECTION 8.6;"

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

                                    "(f) as soon as possible and in any event
                           within thirty (30) Business Days after the Company or
                           any ERISA Affiliate knows or has reason to know (i)
                           that any Termination Event described in CLAUSE (a) of
                           the definition of Termination Event with respect to
                           any Plan has occurred that could have a material
                           adverse effect on the Company or any material
                           Subsidiary of the Company (including for the purposes
                           of this SECTION 8.2(f) any material WCG Subsidiary)
                           or any ERISA Affiliate, or (ii) that any other
                           Termination Event with respect to any Plan has
                           occurred or is reasonably expected to occur that
                           could have a material adverse effect on the Company
                           or any material Subsidiary of the Company (including
                           for the purposes of this SECTION 8.2(f) any material
                           WCG Subsidiary) or any ERISA Affiliate, a statement
                           of the chief financial officer or chief accounting
                           officer of the Company describing such Termination
                           Event and the action, if any, which the Company, such
                           Subsidiary or such ERISA Affiliate proposes to take
                           with respect thereto;"

                                    "(i) promptly and in any event within
                           twenty-five (25) Business Days after receipt thereof
                           by the Company or any ERISA Affiliate from the
                           sponsor of a Multiemployer Plan, a copy of each
                           notice received by the Company or any ERISA Affiliate
                           concerning (i) the imposition of a Withdrawal
                           Liability by a Multiemployer Plan, (ii) the
                           determination that a Multiemployer Plan is, or is
                           expected to be, in reorganization within the meaning
                           of Title IV of ERISA, (iii) the termination of a
                           Multiemployer Plan within the meaning of Title IV of

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                           ERISA, or (iv) the amount of liability incurred, or
                           expected to be incurred, by the Company or such ERISA
                           Affiliate in connection with any event described in
                           CLAUSE (i), (ii) or (iii) above that, in each case,
                           could have a material adverse effect on the Company
                           or any ERISA Affiliate;"

                  1.9 Amendment to SECTION 8.4. SECTION 8.4 is amended by adding
         the following sentence to the end thereof:

                                    "Notwithstanding the foregoing, the Company
                           and its Subsidiaries may consummate any merger or
                           consolidation permitted pursuant to SECTION 8.7 and
                           any Subsidiary of the Company may be converted into a
                           limited liability company by statutory election."

                  1.10 Amendment to SECTION 8.6. SECTION 8.6 is amended, in its
         entirety, to read as follows:

                                    "8.6 Debt. The Company shall not permit the
                           ratio of (a) the aggregate amount of Net Debt of the
                           Company to (b) the sum of the Consolidated Net Worth
                           of the Company plus Net Debt of the Company to exceed
                           0.65 to 1.0 at any time."

                  1.11 Amendment to SECTION 8.8. Clause (b)(iii) of SECTION 8.8
         is amended, in its entirety, to read as follows:

                                    "(iii) other customary encumbrances and
                           restrictions now or hereafter existing of the Company
                           or any of its Subsidiaries entered into in the
                           ordinary course of business that are not more
                           restrictive in any material respect than the
                           encumbrances and restrictions with respect to the
                           Company or its Subsidiaries existing on July 25,
                           2000."

                  1.12 Amendment to SECTION 8.9. SECTION 8.9 is amended, in its
         entirety, to read as follows:

                                    "8.9 Loans and Advances. The Company shall
                           not make or permit to remain outstanding or allow any
                           of its Subsidiaries to make or permit to remain
                           outstanding, any loan or advance to, or own, purchase
                           or acquire any obligations or debt securities of any
                           WCG Subsidiary, except that the Company and its
                           Subsidiaries may make and permit to remain
                           outstanding loans and advances to a WCG Subsidiary
                           existing as of July 25, 2000 and listed on Exhibit F
                           hereto (and such WCG Subsidiaries may permit such
                           loans and advances on Exhibit F to remain
                           outstanding). Except for those investments in
                           existence on July 25, 2000 and listed on Exhibit F
                           hereof, the Company shall not, and shall not permit
                           any of its Subsidiaries to, acquire or otherwise
                           invest in any stock or other equity or other
                           ownership interest in a WCG Subsidiary."

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                  1.13 Amendment to SECTION 8.10. SECTION 8.10 is amended by
         adding the following sentence to the end thereof:

                                    "Nothing herein shall be construed to permit
                           the Company or any of its Subsidiaries to purchase
                           shares, any interest in shares or any ownership
                           interest in a WCG Subsidiary except as permitted by
                           SECTION 8.9."

                  1.14 Amendment to SECTION 8.11. SECTION 8.11. is amended, in
         its entirety, to read as follows:

                                    "8.11 Compliance with ERISA. The Company
                           shall not (a) terminate, or permit any ERISA
                           Affiliate to terminate, any Plan so as to result in
                           any material liability of the Company or any material
                           Subsidiary of the Company (including for purposes of
                           this SECTION 8.11 any material WCG Subsidiary) or any
                           such ERISA Affiliate to the PBGC, or (b) permit to
                           exist any occurrence of any Termination Event with
                           respect to a Plan which would have a material adverse
                           effect on the Company or any material Subsidiary of
                           the Company (including for purposes of this SECTION
                           8.11 any material WCG Subsidiary)."

                  1.15 Amendment to SECTION 8.13. SECTION 8.13. is amended, in
         its entirety, to read as follows:

                                    "8.13 Guarantees. After July 25, 2000, the
                           Company shall not guarantee or otherwise become
                           contingently liable for, or permit any of its
                           Subsidiaries to guarantee or otherwise become
                           contingently liable for, any Debt or any other
                           obligation of any WCG Subsidiary or to otherwise
                           insure a WCG Subsidiary against loss."

                  1.16 Amendment to SECTION 8.15. SECTION 8.15. is amended by
         adding the phrase "relating to the business of the Company and its
         Subsidiaries, but excluding any WCG Subsidiary" immediately after the
         phrase "general corporate purposes" appearing therein, and by adding
         the following sentence at the end thereof:

                                    "The Company may not use any proceeds of any
                           Borrowings to make any loan or advance to, or to own,
                           purchase or acquire any obligations or debt
                           securities of, any WCG Subsidiary or to acquire or
                           otherwise invest in any stock or other equity or
                           other ownership interest in a WCG Subsidiary."

                  1.17 Amendment to SECTION 9.3. SECTION 9.3 is amended, in its
         entirety, to read as follows:

                                    "9.3 Covenants. The Company shall fail to
                           perform or observe (i) any term, covenant or
                           agreement contained in SECTION 8.2 on its part to be
                           performed or observed and such failure shall continue
                           for ten (10) Business Days after the earlier of the
                           date notice thereof shall have been given to the
                           Company by the

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<PAGE>   10

                           Administrative Agent or any Lender or the date the
                           Company shall have knowledge of such failure, or (ii)
                           any term, covenant or agreement contained in this
                           Agreement (other than a term, covenant or agreement
                           contained in SECTION 8.2) or any Note on its part to
                           be performed or observed; and such failure shall
                           continue for five (5) Business Days after the earlier
                           of the date notice thereof shall have been given to
                           the Company by the Administrative Agent or any Lender
                           or the date the Company shall have knowledge of such
                           failure."

                  1.18 Amendment to SECTION 9.7. SECTION 9.7 is amended by
         replacing the reference to (i) the amount "$5,000,000" with the amount
         "$75,000,000" in Subsections (a) and (c) thereof; and (ii) the amounts
         "$15,000,000" and "$10,000,000" with the amounts "$75,000,000" and
         "$50,000,000", respectively, in Subsection (b) thereof.

                  1.19 Addition of EXHIBIT F. The Term Loan Agreement is amended
         by adding Exhibit F thereto, such Exhibit F to appear immediately after
         Exhibit E and to read as "Exhibit F" attached hereto and incorporated
         by reference herein.

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

                  (a) The Company shall have delivered to Administrative Agent
         true and correct copies of all documents evidencing or relating to the
         Primary Credit Agreement and that the transactions contemplated thereby
         have been consummated; and

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

Upon satisfaction of the foregoing conditions, this Amendment shall be deemed
effective on and as of July 25, 2000 (the "AMENDMENT EFFECTIVE DATE").

PARAGRAPH 3. REPRESENTATIONS AND WARRANTIES. As a material inducement to Lenders
to execute and deliver this Amendment, the Company hereby represents and
warrants to Lenders (with the knowledge and intent that Lenders are relying upon
the same in entering into this Amendment) the following: (a) the representations
and warranties in the Term Loan Agreement and in all other Loan Papers are true
and correct on the date hereof in all material respects, as though made on the
date hereof; (b) no Default or Potential Default exists under the Loan Papers;
and (c) the terms and provisions of the Primary Credit Agreement have been
accurately and completely described in the documents provided to the
Administrative Agent pursuant to PARAGRAPH 2(a) above.

PARAGRAPH 4. MISCELLANEOUS.

         4.1 EFFECT ON LOAN DOCUMENTS. The Term Loan Agreement and all related
Loan Papers shall remain unchanged and in full force and effect, except as
provided in this Amendment, and are

                                      -10-
<PAGE>   11

hereby ratified and confirmed. On and after the Amendment Effective Date, all
references to the "Term Loan Agreement" shall be to the Term Loan Agreement as
herein amended. The execution, delivery, and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any
Rights of the Lenders under the Term Loan Agreement or any Loan Papers, nor
constitute a waiver under the Term Loan Agreement or any other provision of the
Loan Papers.

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

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

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

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

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

      [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK. SIGNATURE PAGES FOLLOW.]

                                      -11-
<PAGE>   12

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

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

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

<PAGE>   13

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

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

                                         By:    /s/ Peter D. Kelly
                                             -----------------------------------
                                         Name:  Peter D. Kelly
                                               ---------------------------------
                                         Title: Vice President
                                                --------------------------------

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

<PAGE>   14

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

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

                                    By:    /s/  Harry P. Yergey
                                       -----------------------------------------
                                    Name:  Harry P. Yergey
                                         ---------------------------------------
                                    Title: SVP & Manager
                                          --------------------------------------

                                    By:    /s/ Brian J. Campbell
                                       -----------------------------------------
                                    Name:  Brian J. Campbell
                                         ---------------------------------------
                                    Title: Vice President
                                          --------------------------------------

                                    FOUR WINDS FUNDING CORPORATION, as a
                                    Designated Lender

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

                                    By:    /s/ Tom Ausfahl   /s/ Carl H. Jackson
                                       -----------------------------------------
                                    Name:  Tom Aus Fahl          Carl H. Jackson
                                         ---------------------------------------
                                    Title: Vice President  Senior Vice President
                                          --------------------------------------

With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   15

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

1100 Louisiana Street, Suite 3000         THE BANK OF NOVA SCOTIA,
Houston, Texas 77002                      as Documentation Agent and as a Lender
Telephone: (713) 759-3445
Facsimile: (713) 752-2425
                                           By:    /s/  F.C.H. Ashby
                                              ----------------------------------
                                           Name:  F.C.H. Ashby
                                                --------------------------------
                                           Title: Senior Manager Loan Operations
                                                 -------------------------------

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

With a copy to:

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

----------------------------------
Attention:
           -----------------------
Telephone No.:
               -------------------
Facsimile No.:
               -------------------

<PAGE>   16

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

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

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

With a copy to:

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

----------------------------------
Attention:
           -----------------------
Telephone No.:
               -------------------
Facsimile No.:
               -------------------

<PAGE>   17

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

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

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

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

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   18

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

450 Park Avenue, Suite 2900                BANQUE WORMS CAPITAL CORP.,
New York, New York 10022-2698              as a Lender
Telephone: (212) 826-5479
Facsimile: (212) 593-4854
                                           By:    /s/ Michelle A. Fleming
                                              ----------------------------------
                                           Name:  Michelle A. Fleming
                                                --------------------------------
                                           Title: VP & General Counsel
                                                 -------------------------------

                                           By:    /s/ Jeff Marco
                                              ----------------------------------
                                           Name:  Jeff Marco
                                                --------------------------------
                                           Title: AVP
                                                 -------------------------------

With a copy to:

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

----------------------------------
Attention:
           -----------------------
Telephone No.:
               -------------------
Facsimile No.:
               -------------------

<PAGE>   19

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

1 World Trade Center, Suite 3211            CHANG HWA COMMERCIAL BANK, LTD.,
New York, New York 10048                    NEW YORK BRANCH, as a Lender
Telephone: (212) 390-7063
Facsimile: (212) 390-0120
                                            By:    /s/ Wan-Tu Yeh
                                               ---------------------------------
                                            Name:  Wan-Tu Yeh
                                                 -------------------------------
                                            Title: SVP & General Manager
                                                  ------------------------------
With a copy to:

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

----------------------------------
Attention:
           -----------------------
Telephone No.:
               -------------------
Facsimile No.:
               -------------------

<PAGE>   20

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

1 World Trade Center, 48th Floor             THE DAI-ICHI KANGYO BANK, LTD., as
New York, New York 10048                     a Lender
Telephone: (212) 432-6627
Facsimile: (212) 912-1879                    By:    /s/ Katsuya Noto
                                                --------------------------------
                                             Name:  Katsuya Noto
                                                  ------------------------------
                                             Title: Vice President
                                                   -----------------------------
With a copy to:

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

----------------------------------
Attention:
           -----------------------
Telephone No.:
               -------------------
Facsimile No.:
               -------------------

<PAGE>   21

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

Two World Trade Center, Suite 7868          FIRST COMMERCIAL BANK - NEW YORK
New York, New York 10048                    AGENCY, as a Lender
Telephone: (212) 432-5690
Facsimile: (212) 432-7250                   By:    /s/ Vincent T. C. Chen
                                               ---------------------------------
                                            Name:  Vincent T. C. Chen
                                                 -------------------------------
                                            Title: SVP & GM
                                                  ------------------------------
With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   22

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

380 Madison Avenue, 21st Floor             GULF INTERNATIONAL BANK,
New York, New York 10017                   as a Lender
Telephone: (212) 922-2323
Facsimile: (212) 922-2309
                                           By:    /s/ Abdel-Fattah Tahoun
                                              ----------------------------------
                                           Name:  Abdel-Fattah Tahoun
                                                --------------------------------
                                           Title: SVP
                                                 -------------------------------
With a copy to:

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

----------------------------------
Attention:                                 By:    /s/ William B. Shepard
          ------------------------            ----------------------------------
Telephone No.:                             Name:  William B. Shepard
              --------------------              --------------------------------
Facsimile No.:                             Title: Vice President
              --------------------               -------------------------------

<PAGE>   23

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

2 World Trade Center, Suite 2846              HAU NAN COMMERCIAL BANK, LTD.,
New York, New York 10048                      as a Lender
Telephone: (212) 488-2330
Facsimile: (212) 912-1050
                                              By:    /s/ Yun-Peng Chang
                                                 -------------------------------
                                              Name:  Yun-Peng Chang
                                                   -----------------------------
                                              Title: SVP & General Manager
                                                    ----------------------------
With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   24

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

150 East 42nd Street, 29th Floor              BAYERISCHE HYPO-UND
New York, New York 10017                      VEREINSBANK AG, NEW YORK
Telephone: (212) 672-5446                     BRANCH,as a Lender
Facsimile: (212) 672-5530

                                              By:    /s/ Steven Atwell
                                                 -------------------------------
                                              Name:  Steven Atwell
                                                   -----------------------------
                                              Title: Director
                                                    ----------------------------

                                              By:    /s/ Shannon Batchman
                                                 -------------------------------
                                              Name:  Shannon Batchman
                                                   -----------------------------
                                              Title: Director
                                                    ----------------------------
With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   25

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

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

                                              By:    /s/ Patrick A. Janssens
                                                 -------------------------------
                                              Name:  Patrick A. Janssens
                                                   -----------------------------
                                              Title: Vice President
                                                    ----------------------------
With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   26

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

<TABLE>
<S>                             <C>
Grosse Bleiche 54-56            LANDESBANK RHEINLAND-PFALZ,
Mainz, Germany 55092            GIROZENTRALE,
Telephone: (011) 49-61-31-3580  as a Lender
Facsimile:

                                By:    /s/ Martina Decker-Ribka  /s/ Beatrix Eberz
                                   -----------------------------------------------
                                Name:  Martina Decker Ribka          Beatrix Eberz
                                     ---------------------------------------------
                                Title: Assistant Vice President            Manager
                                      --------------------------------------------
</TABLE>

With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   27

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

Ulsulenan Strasse                  LANDESBANK SAAR GIROZENTRALE,
Saabrucken, Germany 266111         as a Lender
Telephone: (011) 49-681-383-1476

                                   By:    /s/ Manfred Thinnes    /s/ Hans Wobido
                                      ------------------------------------------
                                   Name:  Manfred Thinnes            Hans Wobido
                                        ----------------------------------------
                                   Title: Sr. Vice President   Sr Vice President
                                         ---------------------------------------
With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   28

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

<TABLE>
<S>                                   <C>
Martensdamm 6                         LANDESBANK SCHLESWIG-HOLSTEIN
Kiel, Germany 24103                   GIROZENTRALE, as a Lender
Telephone: (011) 49-431-900-2783
Facsimile: (011) 49-431-900-2751      By:    /s/ Hans Christian Kuhl   /s/ Klaus Reimers
                                         -----------------------------------------------
                                      Name:  Hans Christian Kuhl           Klaus Reimers
                                           ---------------------------------------------
                                      Title: Senior Vice President  Asst. Vice President
                                            --------------------------------------------
</TABLE>

With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   29

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

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

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   30

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

2250 East 73rd Street, Suite 200         LOCAL OKLAHOMA BANK, N.A.,
Tulsa, Oklahoma 74136                    as a Lender
Telephone: (918) 494-3874
Facsimile: (918) 495-1284
                                         By:    /s/ Elisabeth F. Blue
                                            ------------------------------------
                                         Name:  Elisabeth F. Blue
                                              ----------------------------------
                                         Title: Senior Vice President
                                               ---------------------------------
With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   31

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

299 Park Avenue, 17th Floor              NATIONAL BANK OF KUWAIT, S.A.K.,
New York, New York 10171                 GRAND CAYMAN BRANCH, as a
Telephone: (212) 303-9878                Lender
Facsimile: (212) 888-2958

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

                                         By:    /s/ Nicholas Arens
                                            ------------------------------------
                                         Name:  Nicholas Arens
                                              ----------------------------------
                                         Title: Executive Manager
                                               ---------------------------------
With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   32

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

1200 Smith Street, Suite 3100            PARIBAS, as a Lender
Houston, Texas 77002
Telephone: (713) 982-1156
Facsimile: (713) 859-6915                By:
                                            ------------------------------------
                                         Name:
                                              ----------------------------------
                                         Title:
                                               ---------------------------------

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

With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   33

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

Wall Street Plaza                         THE ROYAL BANK OF SCOTLAND, PLC,
88 Pine Street, 26th Floor                as a Lender
New York, New York 10005-1801
Telephone: (212) 269-1706
Facsimile: (212) 480-0791                 By:    /s/ Scott Barton
                                             -----------------------------------
                                          Name:  Scott Barton
                                               ---------------------------------
                                          Title: Vice President
                                                --------------------------------

With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   34

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

277 Park Avenue, 6th Floor                 THE SUMITOMO BANK, LIMITED,
New York, New York 10172                   as a Lender
Telephone: (212) 224-4194
Facsimile: (212) 224-5188
                                           By:    /s/ C. Michael Garrido
                                              ----------------------------------
                                           Name:  C. Michael Garrido
                                                --------------------------------
                                           Title: Senior Vice President
                                                 -------------------------------
With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   35

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

1251 Avenue of the Americas           THE INDUSTRIAL BANK OF JAPAN TRUST COMPANY
New York, New York 10020              as a Lender
Telephone: (212) 282-4065
Facsimile: (212) 282-4250
                                      By:    /s/ Michael N. Oakes
                                         ---------------------------------------
                                      Name:  Michael N. Oakes
                                           -------------------------------------
                                      Title: Senior Vice President
                                            ------------------------------------
                                      THE INDUSTRIAL BANK OF JAPAN,
                                      LIMITED, HOUSTON OFFICE
                                      (Authorized Representative)

<PAGE>   36

         Signature Page to that certain First Amendment to Term Loan Agreement
dated as of August 21, 2000, among The Williams Companies, Inc., as the Company,
Credit Lyonnais New York Branch, as Administrative Agent and as a Lender, and
certain Lenders named therein.

55 East 52nd Street, 11th Floor                THE TOKAI BANK, LIMITED - NEW
New York, New York 10055                       YORK BRANCH, as a Lender
Telephone: (212) 339-1052
Facsimile: (212) 832-1428
                                               By:
                                                  ------------------------------
                                               Name:
                                                    ----------------------------
                                               Title:
                                                     ---------------------------
With a copy to:

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

----------------------------------
Attention:
          ------------------------
Telephone No.:
              --------------------
Facsimile No.:
              --------------------

<PAGE>   37

                                    EXHIBIT F

                EXISTING LOANS AND INVESTMENT IN WCG SUBSIDIARIES

Loan Agreement dated as of September 8, 1999, between Williams Communications,
Inc., as Borrower, and the Company, as Lender, filed as Exhibit 10.57 to WCG's
Form 10-K/A for the fiscal year ended December 31, 1999.

Various immaterial intercompany receivables between the Company or its
Subsidiaries and the WCG Subsidiaries for services rendered, which are settled
on a reasonably prompt basis. Services are rendered to the WCG Subsidiaries by
the Company or its Subsidiaries pursuant to certain intercompany services
agreements, all of which are filed as exhibits to WCG's Form 10-K/A for the
fiscal year ended December 31, 1999.

As of July 25, 2000, the Company's investment in WCG consists of 395,434,965
shares of Class B common stock.<PAGE>   1
                                                                 EXHIBIT (4)(ll)

                                    FORM OF
               WAIVER AND SECOND AMENDMENT TO TERM LOAN AGREEMENT

         THIS WAIVER AND SECOND AMENDMENT TO TERM LOAN AGREEMENT (the
"AMENDMENT") is entered into effective as of January 31, 2001, among The
Williams Companies, Inc., a Delaware corporation (the "COMPANY"), Credit
Lyonnais New York Branch, as Administrative Agent (in such capacity,
"ADMINISTRATIVE AGENT"), and certain LENDERS (herein so called) named on
SCHEDULE 2.1 (as amended and supplemented from time to time) of the Term Loan
Agreement (as hereinafter defined).

                                    RECITALS

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

         B. The Company has requested that the Lenders waive, modify and amend
certain terms and provisions of the Term Loan Agreement and to terminate the
Prior Waiver Letter.

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

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

PARAGRAPH 1. AMENDMENT OF SECTION 1.1 OF THE TERM LOAN AGREEMENT. SECTION 1.1 of
the Term Loan Agreement is hereby amended, as follows:

                  (a) The definition of "Consolidated Net Worth" in such SECTION
         1.1 is hereby amended and restated to read in its entirety as follows:

                  " "Consolidated Net Worth" of any Person means the Net Worth
                  of such Person and its Subsidiaries on a Consolidated basis
                  plus, in the case of the Company, the Designated Minority
                  Interests to the extent not otherwise included; provided that,
                  in no event shall the value ascribed to Designated Minority
                  Interests for the Subsidiaries of the Company described in
                  clauses (i) through (v) and (vii) of the definition of
                  "Designated Minority Interests" exceed $136,892,000 in the
                  aggregate."

                                       1
<PAGE>   2

                  (b) The definition of "DEBT" in SECTION 1.1 is hereby amended
         and restated to read in its entirety as follows:

                  " "DEBT" means, in the case of any Person, (i) indebtedness of
                  such Person for borrowed money, (ii) obligations of such
                  Person evidenced by bonds, debentures or notes, (iii)
                  obligations of such Person to pay the deferred purchase price
                  of property or services (other than trade payables not overdue
                  by more than sixty (60) days incurred in the ordinary course
                  of business), (iv) monetary obligations of such Person as
                  lessee under leases that are, in accordance with generally
                  accepted accounting principles, recorded as capital leases,
                  (v) obligations of such Person under guaranties in respect of,
                  and obligations (contingent or otherwise) to purchase or
                  otherwise acquire, or otherwise to assure a creditor against
                  loss in respect of, indebtedness or obligations of others of
                  the kinds referred to in clauses (i) through (iv) of this
                  definition and (vi) indebtedness or obligations of others of
                  the kinds referred to in clauses (i) through (v) of this
                  definition secured by any Lien on or in respect of any
                  property of such Person; provided, however, that (x) Debt
                  shall not include any obligation under or resulting from any
                  agreement referred to in paragraph (y) of Schedule I; (y) in
                  the case of the Company, Debt shall not include any contingent
                  obligation of the Company relating to indebtedness incurred by
                  any SPV, WCG or a WCG Subsidiary pursuant to the WCG
                  Structured Financing; and (z) it is the understanding of the
                  parties hereto that Debt shall not include any monetary
                  obligations or guaranties of monetary obligations of Persons
                  as lessee under leases that are, in accordance with generally
                  accepted accounting principles, recorded as operating leases."

                  (c) The definition of "DESIGNATED MINORITY INTERESTS" in such
         SECTION 1.1 is hereby amended and restated to read in its entirety as
         follows:

                  " "DESIGNATED MINORITY INTERESTS" of the Company means, as of
                  any date of determination, the total of the minority interests
                  in the following Subsidiaries: (i) El Furrial, (ii) PIGAP II,
                  (iii) Nebraska Energy, (iv) Seminole, (v) American Soda, (vi)
                  the Midstream Asset MLP, and (vii) other Subsidiaries, as
                  presented in the Consolidating balance sheet of the Company,
                  in an amount not to exceed in the aggregate $9,000,000 for
                  such other Subsidiaries not referred to in items (i) through
                  (vi); provided that minority interests which provide for a
                  stated preferred cumulative return shall not be included in
                  "Designated Minority Interests."

                  (d) The following definitions are added to SECTION 1.1 of the
         Term Loan Agreement in appropriate alphabetical order:

                  " "MIDSTREAM ASSET MLP" means one or more master limited
                  partnerships included in the Consolidated financial statements
                  of the Company to which the Company has transferred or shall
                  transfer certain assets relating to the distribution, storage
                  and transportation of petroleum products and ammonia,
                  including without limitation marine and inland terminals and
                  related pipeline systems, including, without limitation,
                  Williams Energy Partners L.P."

                                       2
<PAGE>   3

                  " "SPV" is used as defined in the definition of "WCG
                  STRUCTURED FINANCING."

                  " "WCG STRUCTURED FINANCING" means a certain series of related
                  transactions in anticipation of the spin-off of WCG pursuant
                  to which WCG or a WCG Subsidiary shall obtain loans or equity
                  contributions either directly from investors in the
                  marketplace or through one or more special purpose vehicles
                  (each, an "SPV"), which SPV or SPVs may be Subsidiaries of the
                  Company. Principal of such loans and such equity contributions
                  shall be in a cumulative amount after January 31, 2001 which
                  does not exceed in the aggregate $1.5 billion. The Company may
                  have a contingent obligation with respect to repayment of
                  indebtedness or return on and of equity of the SPV (or SPVs),
                  WCG or a WCG Subsidiary in regard to such transaction, which
                  contingent obligation shall terminate in each case no later
                  than four (4) years after the effective date of such
                  transaction and shall be satisfied solely through the issuance
                  of equity securities unless further sales of equity securities
                  of the Company are not possible or will not result in
                  additional net proceeds."

PARAGRAPH 2. WAIVERS. The Company has requested the waiver of, and each Lender
hereby agrees to waive, certain provisions of the Term Loan Agreement for and in
connection with the transactions described below:

                  (a) The Company or certain of its Subsidiaries are currently
         the owners of certain assets described on SCHEDULE A-1 hereto which the
         Company or such certain Subsidiaries wish to transfer to WCG and/or
         certain WCG Subsidiaries. In exchange for the transfer to WCG and/or
         certain WCG Subsidiaries of the assets listed on SCHEDULE A-1 and the
         assumption by the Company and/or its Subsidiaries of those certain
         liabilities of WCG or WCG Subsidiaries listed on SCHEDULE A-2, WCG
         and/or certain WCG Subsidiaries will transfer to the Company and/or its
         Subsidiaries the assets listed on SCHEDULE B-1 and will assume those
         certain liabilities of the Company and/or its Subsidiaries listed on
         SCHEDULE B-2. The Company hereby represents and warrants that such
         transaction is being entered into on terms and conditions reasonably
         fair in all material respects to the Company and its Subsidiaries.

                  The Company anticipates that it or one of its Subsidiaries may
         purchase certain assets of WCG or a WCG Subsidiary listed on SCHEDULE
         A-1 and enter into a Sale Lease-Back Transaction in which the Company
         or one of its Subsidiaries will lease such assets to WCG or a WCG
         Subsidiary. The Company hereby covenants that such transaction shall be
         entered into on terms and conditions reasonably fair in all material
         respects to the Company and its Subsidiaries. To the extent that such
         Sale Lease-Back Transaction may be, or may be deemed to be, an
         investment in WCG or a WCG Subsidiary, such transaction is prohibited
         by SECTION 8.9 of the Term Loan Agreement.

                  In connection with such asset exchange and the Sale Lease-Back
         Transaction, and only for purposes of such transactions, the Company
         requests that the Lenders waive the provisions of SECTION 8.9 to allow
         the Company and/or its Subsidiaries to effect the Sale Lease-Back
         Transaction, described in the preceding paragraph, and to acquire the
         equity interests and stock in WCG and certain WCG Subsidiaries, as
         described on SCHEDULE B-1, and to transfer assets to WCG and/or WCG
         Subsidiaries on the terms set forth above. Nothing herein shall be
         construed or deemed to permit the Company or its Subsidiaries to invest
         in or acquire stock or equity

                                       3
<PAGE>   4

         interests in WCG or any of its Subsidiaries except to the extent
         described above. Nothing herein shall, or shall be deemed to, waive the
         provisions of SECTION 8.14 or any other provisions of the Term Loan
         Agreement applicable to the Sale Lease-Back Transaction, except as
         expressly set forth above with respect to SECTION 8.9.

                  (b) In connection with the WCG Structured Financing, and only
         with respect to such WCG Structured Financing, the Company requests
         that the Lenders waive:

                           (i) the provisions of SECTION 8.8 to allow consensual
                           encumbrances and restrictions on the ability of any
                           SPV (as defined above) to make or pay any
                           distributions, dividends, loans or advances to the
                           Company or its Subsidiaries; provided that such
                           consensual encumbrances or restrictions (x) are
                           pursuant to the documents governing the WCG
                           Structured Financing and (y) restrict making or
                           paying distributions, dividends, loans or advances of
                           or on only those assets held by an SPV directly
                           relating to the WCG Structured Financing; and

                           (ii) the provisions of SECTION 8.13 to allow the
                           Company to be contingently liable for the obligations
                           of any SPV, WCG or WCG Subsidiaries for payments
                           relating to indebtedness or return on and of equity
                           incurred by such entity pursuant to the WCG
                           Structured Financing.

                  By its signature hereto, each Lender agrees to waive and does
         hereby waive (i) SECTION 8.9 to allow the Company and its Subsidiaries
         to acquire the equity interests and stock in WCG and certain WCG
         Subsidiaries, to the extent set forth above and to allow the Company
         and its Subsidiaries to act as lessor pursuant to the Sale Lease-Back
         Transaction described above involving assets listed on SCHEDULE A-1;
         (ii) SECTION 8.8 to allow consensual encumbrances and restrictions on
         the ability of any SPV to make or pay distributions, dividends, loans
         or advances to the Company or its Subsidiaries if such encumbrances and
         restrictions are pursuant to documents governing the WCG Structured
         Financing and apply only to assets of such SPV which are directly
         related to the WCG Structured Financing, and (iii) SECTION 8.13 to
         allow the Company or a Subsidiary to be contingently liable with
         respect to the indebtedness or return on and of equity incurred
         pursuant to the WCG Structured Financing. Nothing herein shall be
         deemed or construed to waive any other breach of SECTIONS 8.8, 8.9 or
         SECTION 8.13 of the Term Loan Agreement or to waive a breach of any
         other provision of the Term Loan Agreement or to require any similar or
         dissimilar waiver to be granted hereafter.

PARAGRAPH 3. AMENDMENT EFFECTIVE DATE. This Amendment shall be binding upon all
parties to the Loan Papers on the last day upon which the following has
occurred:

                  (a) Administrative Agent shall have received a certificate, in
         form and substance satisfactory to Administrative Agent, addressed to
         the Lenders, of a responsible officer of WCG and/or each relevant WCG
         Subsidiary as to (i) its title to those assets transferred to the
         Company pursuant to the transactions described in Paragraph 2 hereof,
         and (ii) the equity interests and shares of stock issued or to be
         issued to the Company pursuant to the transactions described in
         Paragraph 2 hereof; and

                                       4
<PAGE>   5

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

Upon satisfaction of the foregoing conditions, (i) this Amendment shall be
deemed effective on and as of January 31, 2001 (the "AMENDMENT EFFECTIVE DATE"),
and (ii) the Prior Waiver Letter shall be and be deemed to be terminated and of
no further force and effect.

PARAGRAPH 4. REPRESENTATIONS AND WARRANTIES. As a material inducement to Lenders
to execute and deliver this Amendment, the Company hereby represents and
warrants to Lenders (with the knowledge and intent that Lenders are relying upon
the same in entering into this Amendment) the following: (a) the representations
and warranties in the Term Loan Agreement and in all other Loan Papers are true
and correct on the date hereof in all material respects, as though made on the
date hereof; (b) no Default or Potential Default exists under the Loan Papers;
and (c) the terms and provisions of the transactions described in Paragraph 2
hereof have been accurately and completely described herein and in the other
documents provided to the Administrative Agent and the Lenders in connection
herewith.

PARAGRAPH 5. MISCELLANEOUS.

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

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

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

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

         5.5 THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT AMONG THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,

                                       5
<PAGE>   6

CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENT OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

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

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                             SIGNATURE PAGES FOLLOW]

                                       6
<PAGE>   7

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

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

With a copy to:

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>   8

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

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

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

With a copy to:

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   9

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

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

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

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   10

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

                                        FOUR WINDS FUNDING CORPORATION,
                                        as a Designated Lender

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

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

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   11

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

1100 Louisiana Street, Suite 3000       THE BANK OF NOVA SCOTIA,
Houston, Texas 77002                    as Documentation Agent and as a Lender
Telephone:  (713) 759-3445
Facsimile:  (713) 752-2425
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   12

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

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

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

With a copy to:

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

------------------------------------
Attention:
          --------------------------
Telephone No.:
              ----------------------
Facsimile No.:
              ----------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   13

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

470 Park Avenue South                   BANK POLSKA KASA OPIEKI S.A.,
32nd Street, 15th Floor                 as a Lender
New York, New York
Telephone: (212) 251-1245
Facsimile: (212) 679-5910               By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   14

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

122 East 42nd Street, Suite 4405        BANQUE WORMS CAPITAL CORP.,
New York, New York 100168               as a Lender
Telephone: (212) 883-6330
Facsimile: (212) 883-6350
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

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

With a copy to:

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

------------------------------------
Attention:
          --------------------------
Telephone No.:
              ----------------------
Facsimile No.:
              ----------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   15

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

1 World Trade Center, Suite 3211        CHANG HWA COMMERCIAL BANK,
New York, New York 10048                LTD., NEW YORK BRANCH, as a Lender
Telephone: (212) 390-7049
Facsimile: (212) 390-0120
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   16

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

1 World Trade Center, 48th Floor        THE DAI-ICHI KANGYO BANK, LTD., as a
New York, New York 10048                Lender
Telephone: (212) 432-6627
Facsimile: (212) 912-1879
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   17

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

Two World Trade Center, Suite 7868      FIRST COMMERCIAL BANK - NEW YORK AGENCY,
New York, New York 10048                as a Lender
Telephone: (212) 432-5690
Facsimile: (212) 432-7250
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

With a copy to:

Attention: Jeffrey Wang
Telephone No.: (212) 432-6590
Facsimile No.: (212) 432-7250

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   18

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

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

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   19

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

2 World Trade Center, Suite 2846        HAU NAN COMMERCIAL BANK, LTD.,
New York, New York 10048                as a Lender
Telephone: (212) 488-2330
Facsimile: (212) 912-1050
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   20

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

150 East 42nd Street, 29th Floor        BAYERISCHE HYPO-UND
New York, New York 10017                VEREINSBANK AG, NEW YORK
Telephone: (212) 672-5446               BRANCH, as a Lender
Facsimile: (212) 672-5530
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   21

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

245 Peachtree Center Avenue, Suite 2550         KBC BANK N.V., as a Lender
Atlanta, Georgia 30303
Telephone: (404) 584-5466
Facsimile: (404) 584-5465
                                                By:
                                                   -----------------------------
                                                Name:
                                                     ---------------------------
                                                Title:
                                                      --------------------------

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   22

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

Grosse Bleiche 54-56                    LANDESBANK RHEINLAND-PFALZ,
Mainz, Germany 55092                    GIROZENTRALE,
Telephone: (011) 49-61-31-3580          as a Lender
Facsimile:
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   23

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

Ursulinenstr. 2                         LANDESBANK SAAR GIROZENTRALE,
66111 Saarbrucken, Germany              as a Lender
Telephone: (011) 49-681-383-1476

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

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   24

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

Martensdamm 6                           LANDESBANK SCHLESWIG-HOLSTEIN
Kiel, Germany 24103                     GIROZENTRALE, as a Lender
Telephone: (011) 49-433-900-2783
Facsimile: (011) -49-431-900-2751
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   25

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

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

With a copy to:

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

------------------------------------
Attention:
          --------------------------
Telephone No.:
              ----------------------
Facsimile No.:
              ----------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   26

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

2250 East 73rd Street, Suite 200        LOCAL OKLAHOMA BANK, N.A.,
Tulsa, Oklahoma 74136                   as a Lender
Telephone: (918) 494-3874
Facsimile: (918) 495-1284
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   27

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

299 Park Avenue, 17th Floor             NATIONAL BANK OF KUWAIT, S.A.K.,,
New York, New York 10171                GRAND CAYMAN BRANCH as a
Telephone: (212) 303-9878               Lender
Facsimile: (212) 888-2958

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

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>   28

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

1200 Smith Street, Suite 3100           PARIBAS, as a Lender
Houston, Texas 77002
Telephone: (713) 982-1156
Facsimile: (713) 859-6915               By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------
With a copy to:

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

------------------------------------
Attention:
          --------------------------
Telephone No.:
              ----------------------
Facsimile No.:
              ----------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   29

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

Wall Street Plaza                       THE ROYAL BANK OF SCOTLAND, PLC,
88 Pine Street, 26th Floor              as a Lender
New York, New York 10005-1801
Telephone: (212) 269-1706
Facsimile: (212) 480-0791               By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   30

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

277 Park Avenue, 6th Floor              THE SUMITOMO BANK, LIMITED,
New York, New York 10172                as a Lender
Telephone: (212) 224-4194
Facsimile: (212) 224-5188
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   31

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

1251 Avenue of the Americas             THE INDUSTRIAL BANK OF JAPAN
New York, New York 10020                TRUST COMPANY
Telephone: (212) 282-4065               as a Lender
Facsimile: (212) 282-4250

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

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   32

         Signature Page to that certain Waiver and Second Amendment to Term Loan
Agreement dated effective as of January 31, 2001, among The Williams Companies,
Inc., as the Company, Credit Lyonnais New York Branch, as Administrative Agent
and as a Lender, and certain Lenders named therein.

55 East 52nd Street, 11th Floor         THE TOKAI BANK, LIMITED - NEW
New York, New York 10055                YORK BRANCH, as a Lender
Telephone: (212) 339-1052
Facsimile: (212) 832-1428
                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                 [SIGNATURE PAGE TO WAIVER AND SECOND AMENDMENT
                             TO TERM LOAN AGREEMENT]
<PAGE>   33

                                 SCHEDULE A - 1

            ASSETS TO BE TRANSFERRED FROM TWC AND/OR ITS SUBSIDIARIES
                         TO WCG AND/OR WCG SUBSIDIARIES

1.       Those certain three aircraft owned by Williams Aviation, Inc., or under
         contract for purchase by Williams Aviation, Inc, more specifically
         identified as follows:

                  Citation V - located in Chesterfield, Missouri, Tail
                  Number N352WC
                  Citation X - located in Tulsa, Oklahoma, Tail Number N358WC
                  Citation Excel - scheduled for delivery by April 1, 2001,
                  Tail Number N359WC

         The aggregate value of the three aircraft is $32,000,000.

2.       That certain Williams Technology Center located in Tulsa, Oklahoma, and
         owned by the Williams Headquarters Building Company. The Williams
         Technology Center is constructing a fifteen story office building that
         will house various Williams energy and communications employees. It
         will be attached to the east-end of the existing Bank of Oklahoma Tower
         at the Plaza, Ground and Service levels. The building is bounded on the
         north by First Street, east by Cincinnati Avenue, south by Second
         Street, and west by the podium of the Bank of Oklahoma Tower. The
         building will contain 733,391 net rentable square feet and accommodate
         up to 4,000 employees.

3.       That certain Parking Garage being constructed on the northeast corner
         of First Street and Cincinnati Avenue, directly south of the LaPetite
         Academy daycare center. The parking garage will be six levels tall and
         contain 1,029 parking spaces. It will be connected to the Williams
         Technology Center by pedestrian bridges west across Cincinnati and
         south across First Street.

         The aggregate value of the Williams Technology Center and the Parking
         Garage (items 2 and 3) is $85,000,000.

4.       That certain Intercompany Note executed between TWC and Williams
         Communications, Inc., on September 8, 1999. The note is for seven years
         and has approximately $975 million outstanding, bears interest at rates
         equal to LIBOR, or an alternate base rate, plus a margin based on the
         debt rating of WCG's credit facility by Standard & Poor's and Moody's,
         plus 0.25% based on WCG's ratio of total debt to EBITDA greater than or
         equal to 6.0 to 1.0. Principal is paid quarterly beginning July 1,
         2000.

         The value of the Intercompany Note is $630,000,000.

                                      A-1
<PAGE>   34

                                 SCHEDULE A - 2

                   LIABILITIES OF WCG AND/OR WCG SUBSIDIARIES
                  TO BE ASSUMED BY TWC AND/OR ITS SUBSIDIARIES

1.       Payment obligations with respect to those certain building
         improvements, fixtures and equipment including all construction,
         design, flooring, food service equipment, security, audio equipment,
         video equipment, telecommunication equipment, furniture and fixtures,
         and related costs, including but not limited to material, labor,
         installation and taxes, as set forth in the Authorization for
         Expenditure(s) dated September 18, 2000.

         The aggregate value of the building improvements, fixtures and
         equipment is $160,000,000.

                                      A-2
<PAGE>   35

                                 SCHEDULE B - 1

            ASSETS TO BE TRANSFERRED FROM WCG AND/OR WCG SUBSIDIARIES
                         TO TWC AND/OR ITS SUBSIDIARIES

1.       All losses or credit carryovers or other similar attributes of WCG not
         in existence on September 30, 1999, but arising thereafter, and
         utilized by Williams as part of its consolidated tax return for any
         consolidated returns filed following September 30, 1999, as described
         in the Tax Sharing Agreement dated September 30, 1999.

         The aggregate value is $317,000,000.

2.       That certain Telecommunications Services Agreement dated January 5,
         1995, between The Williams Companies, Inc. and Wiltel, Inc., and
         subsequently amended. WorldCom, as the successor to Wiltel, provides
         WCG a specific amount of long distance, frame relay and private line
         services free of costs other than its out of pocket expenses payable to
         third parties. WCG resells these services to Williams, its subsidiaries
         and affiliates at market rates. The term of the agreement is 35 years
         beginning January 1995.

         The value is $65,000,000.

3.       Those certain two dark fibers capable of providing a minimum capacity
         up to an OC-12 along the entire length of the fiber optic facilities
         along Transco's main line pipelines from Houston, Texas to Manassas,
         Virginia and Washington, D.C. to Station 200 outside Philadelphia,
         Pennsylvania which include property in the states of Texas, Louisiana,
         Mississippi, Alabama, Georgia, South Carolina, North Carolina,
         Virginia, the District of Columbia, Maryland and Pennsylvania,
         including the dark fiber needed to connect the non-contiguous points
         along the Transco right of way (the "Transco Fiber"). The general
         description of this service is provided in that certain Construction,
         Operating, Maintenance Agreement dated January 1, 1997. The Transco
         Fiber excludes any incidental services required to support the dark
         fiber pair, such as collocation, power, and maintenance fees.

         The aggregate value is $15,000,000.

4.       That number of shares of WCG Class A stock to be issued to TWC having
         an aggregate value equal to approximately $470 million, to be priced
         based upon the average of the high and low for each of the five
         business days beginning January 17, 2001 and ending January 23, 2001.

                                      B-1
<PAGE>   36

                                 SCHEDULE B - 2

                   LIABILITIES OF TWC AND/OR ITS SUBSIDIARIES
                  TO BE ASSUMED BY WCG AND/OR WCG SUBSIDIARIES

1.       All incremental costs to be incurred by WCG in connection with the
         replacement of certain shared hardware, systems and applications that
         will need to be replicated upon the separation of the two companies. In
         addition, WCG will need to procure it own unique software licenses on
         everything from Microsoft products to the PeopleSoft applications. Also
         included in this category are those miscellaneous costs incurred to
         effect the spin-off of WCG from Williams.

         The aggregate value is $40,000,000.

                                      B-2

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