Document:

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                                                                   EXHIBIT 10.17

                     FIFTH AMENDMENT TO TERM LOAN AGREEMENT

         THIS FIFTH AMENDMENT TO TERM LOAN AGREEMENT (the "Amendment") is
entered into effective as of July 31, 2002, among The Williams Companies, Inc.,
a Delaware corporation (the "Company"), Williams Gas Pipeline Company, L.L.C., a
Delaware limited liability company, and Williams Production Holdings L.L.C., a
Delaware limited liability company (collectively, the "Guarantor"), 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, that certain
Waiver and Second Amendment to Term Loan Agreement dated as of January 31, 2001,
that certain Third Amendment to Term Loan Agreement dated as of February 7,
2002, and that certain Fourth Amendment to Term Loan Agreement dated as of March
11, 2002 (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 dated as of November 6, 2000, and that
certain Limited Waiver of Term Loan Agreement dated as of July 20, 2001. 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 further 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 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. Consent. The Lenders party hereto consent to (i) the sale by the
Company or by any of its Subsidiaries of (1) WPC (the "Central Pipelines Asset
Disposition"), (2) MAPL (the "MAPL Asset Disposition"), (3) Seminole (the
"Seminole Asset Disposition"), (4) the Refineries (the "Refineries Asset
Disposition"), (5) Soda Ash (the "Soda Ash Asset Disposition"), (6)
TravelCenters (the "Travel Centers Asset Disposition"), and (7) Bio-Energy (the
"Bio-Energy Asset Disposition", together with the Central Pipelines Asset
Disposition, MAPL Asset Disposition, Seminole Asset Disposition, Refineries
Asset Disposition, Soda Ash Disposition and TravelCenters Asset Disposition, the
"TWC Asset Dispositions"), (ii) the LLC Guaranty, the Midstream Guaranty, and
the Holdings Guaranty, and (iii) the execution and delivery of and performance
by RMT, the Company and RMT LLC and their subsidiaries party thereto of the
Barrett Loan Agreement and the transactions related thereto or contemplated
thereby.

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Paragraph 2. Amendments to Term Loan Agreement. The Term Loan Agreement hereby
is amended as follows:

         2.1      Definitions

         (a)      Section 1.1 of the Credit Agreement is hereby amended by
         replacing the following definitions, in their respective entireties, as
         follows:

                  "Applicable Margin" means the percentage set forth in the
         table below for the Type of Borrowing which corresponds to the
         Company's conformity, on any date of determination, with the ratings
         (or implied ratings) established by both S&P and Moody's applicable to
         the Company's senior, unsecured, non-credit-enhanced long term
         indebtedness for borrowed money ("Index Debt"):

<TABLE>
<CAPTION>
                             Eurodollar         Base Rate
 Index Debt Ratings        Rate Borrowings      Borrowings
<S>                        <C>                  <C>
    Category 1
BB+ and Ba1 or higher          3.250%             2.000%

    Category 2
    BB and Ba2                 3.750%             2.500%

    Category 3
    BB- and Ba3                4.250%             3.000%

    Category 4
    B+ and Bl                  4.500%             3.250%

    Category 5
 B and B2; or lower            4.750%             3.500%
</TABLE>

         For purposes of determining the Applicable Margin, with respect to the
         debt ratings criteria: (i) if neither Moody's nor S&P shall have in
         effect a rating for Index Debt (other than by reason of the
         circumstances referred to in the last sentence of this definition),
         then both such rating agencies will be deemed to have established
         ratings for Index Debt in Category 5; (ii) if only one of Moody's or
         S&P shall have in effect a rating for Index Debt, the Company and the
         Lenders will negotiate in good faith to agree upon another rating
         agency to be substituted by an agreement for the rating agency which
         shall not have a rating in effect, and in the absence of such agreement
         the Applicable Margin will be determined by reference to the available
         rating; (iii) except as expressly provided in the above table, if the
         ratings established by Moody's and S&P shall differ by (x) one
         Category, the Applicable Margin shall be determined by reference to the
         numerically higher Category, and (y) two or more Categories the
         Applicable Margin shall be determined by reference to the numerical
         Category which is one less than the numerically highest such Category
         (for example, if the rating from S&P is in Category 2 and the rating
         from Moody's is in Category 5, the Applicable Margin shall be
         determined by reference to Category 4); and (iv) if any rating
         established by Moody's or S&P shall be changed (other than as a result
         of a change in the rating system of either Moody's or S&P), such change
         shall be effective as of the date on which such change is first
         announced by the rating agency making such change. If the rating system
         of either Moody's or S&P shall change prior to the payment in full of
         the Obligation and the cancellation of all commitments to lend
         hereunder, the Company and the Lenders shall negotiate in good faith to
         amend the references to specific ratings in this definition to reflect
         such changed rating system.

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If both Moody's and S&P shall cease to be in the business of rating corporate
debt obligations, the Company and the Lenders shall negotiate in good faith to
agree upon a substitute rating agency and to amend the references to specific
ratings in this definition to reflect the ratings used by such substitute rating
agency, and the Applicable Margin shall continue to be based upon the ratings
Category in effect immediately prior to such event until such agreement on a
substitute rating agency is reached.

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

         "Debt" means, in the case of any Person, the principal or equivalent
amount of (i) indebtedness of such Person for borrowed money, (ii) obligations
of such Person evidenced by bonds, debentures, notes or similar instruments,
(iii) obligations of such Person to pay the deferred purchase price of property
or services (other than trade payables not overdue by more than 60 days incurred
in the ordinary course of business), (iv) obligations of such Person as lessee
under leases that are, in accordance with generally accepted accounting
principles, recorded as capital leases, (v) payments necessary to exercise a
purchase option with respect to the property used by such Person and encumbered
by a Synthetic Lease with such Person as lessee, excluding any portion of such
amount representing accrued interest, transfer taxes or other ancillary items,
(vi) obligations of such Person under any Financing Transaction, (vii)
indebtedness (other than that described in clauses (i) through (iv), (viii),
(ix) and (x) of this definition) incurred after July 31, 2002 of the
Subsidiaries of such Person, and indebtedness (other than that described in
clauses (i) through (iv), (viii), (ix) and (x) of this definition) incurred
after July 31, 2002 of any other entity that has been created or utilized,
directly or indirectly, for financing purposes of such Person or any of its
Subsidiaries, (viii) 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 (vii) of
this definition, (ix) indebtedness or obligations of others of the kinds
referred to in clauses (i) through (viii) of this definition secured by any Lien
on or in respect of any property of such Person and (x) any Attributable
Obligations of such Person; provided, however, that Debt shall not include (w)
any obligations of the Company in respect of the FELINE PACS; (x) Non-Recourse
Debt; (y) Performance Guaranties, (z) monetary obligations or guaranties of
monetary obligations of Persons as lessee under leases (other than, to the
extent provided herein above, Synthetic Leases) that are, in accordance with
generally accepted accounting principles, recorded as operating leases and (aa)
guarantees by such Person of obligations of others which are not obligations
described in clauses (i) through (x) of this definition, and provided further
that where any such indebtedness or obligation of such Person is made jointly,
or jointly and severally, with any third party or parties other than any
Subsidiary of such Person, the amount thereof for the purpose of this definition
only shall be the pro rata portion thereof payable by such Person, so long as
such third party or parties have not defaulted on its or their joint and several
portions thereof and can reasonably be expected to perform its or their
obligations thereunder. For the avoidance of doubt, "Debt" shall not include the
Letters of Credit.

         "Net Worth" of any Person means, as of any date of determination, the
excess of total assets of such Person plus all non-cash losses resulting from
the write-down or disposition of the Trading Book over total liabilities of such
Person, total assets and total liabilities each to be determined in accordance
with generally accepted accounting principles; provided, however, that for
purposes of calculating Net Worth, total liabilities shall not include any
obligations of the Borrower in respect of the FELINE PACS.

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(b) Section 1.1 of the Credit Agreement is hereby amended by inserting the
following definitions hereto in proper alphabetical order:

         "Acceptable Security Interest" in any property shall mean a Lien
granted pursuant to a Credit Document (i) which exists in favor of the
Collateral Agent for the benefit of itself, the Administrative Agent, the Banks
and the "Administrative Agent", "Issuing Banks" and "Banks" as each such term is
defined in the L/C Agreement, (ii) which is superior to all other Liens, except
Permitted Liens, (iii) which secures the "Obligations" as defined in each of the
Primary Credit Agreement and the L/C Agreement, and (iv) which is perfected and
is enforceable by the Collateral Agent, for the benefit of itself and the
"Administrative Agent", "Issuing Banks" and "Banks" as each such term is defined
in each of the Primary Credit Agreement and the L/C Agreement, against all other
Persons in preference to any rights of any such other Person therein; provided
that such Lien may be subject to the "Agreed Exceptions" (as defined in the L/C
Agreement).

         "Asset" or "property" (in each case, whether or not capitalized) means
any right, title or interest in any kind of property or asset, whether real,
personal or mixed, and whether tangible or intangible.

         "Attributable Obligation" of any Person means, with respect to any Sale
and Lease-Back Transaction of such Person as of any particular time, the present
value at such time discounted at the rate of interest implicit in the terms of
the lease of the obligations of the lessee under such lease for net rental
payments during the remaining term of the lease (including any period for which
such lease has been extended or may, at the option of such Person, be extended).

         "Barrett Loan" means the loans made pursuant to the Barrett Loan
Agreement.

         "Barrett Loan Agreement" means the Credit Agreement dated July 3 1,
2002, among the Company, RMT LLC, RMT, the Lenders party thereto from time to
time, Lehman Brothers Inc., as Arranger, and Lehman Commercial Paper Inc., as
Syndication Agent and as Administrative Agent.

         "Capital Lease" means a lease that in accordance with generally
acceptable accounting principles must be reflected on a company's balance sheet
as an asset and corresponding liability.

         "Cash Equivalents" means any of the following, to the extent owned by
the Company or any of its Subsidiaries free and clear of all Liens other than
Liens created under the L/C Collateral Documents and having a maturity of not
greater than 270 days from the date of acquisition thereof: (a) readily
marketable direct obligations of the Government of the United States or any
agency or instrumentality thereof or obligations unconditionally guaranteed by
the full faith and credit of the Government of the United States, (b) insured
certificates of deposit of or time deposits with any commercial bank that is a
Lender or a "Bank" under each of the Primary Credit Agreement or the L/C
Agreement or a member of the Federal Reserve System, issues (or the parent of
which issues) commercial paper rated as described in clause (c) below, is
organized under the laws of the United States or any State thereof and has
combined capital and surplus of at least $1 billion or (c) commercial paper in
an aggregate amount of no more than $500,000,000, per issuer outstanding at any
time, issued by any corporation organized under the laws of any State of the
United States and rated at least "Prime-l" (or the then equivalent grade) by
Moody's Investors Service, Inc. or "A-l" (or the then equivalent grade) by
Standard & Poor's, a division of The McGraw-Hill Companies, Inc.

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         "Cash Flow" means, for any period, the Consolidated cash flow from
operations of the Company and its Subsidiaries for such period determined in
accordance with generally accepted accounting principles; provided that in
determining such Consolidated cash flow from operations, there shall be excluded
therefrom (to the extent otherwise included therein) (a) any positive cash flow
from operations of any Person (including Project Financing Subsidiaries) subject
to any restriction prohibiting the distribution of cash to the Company or any of
its Subsidiaries, except and then only to the extent of the amount thereof that
the Company or any of its Subsidiaries actually receives or has the right to
receive (within the limits of such restrictions) during such period, (b)
proceeds resulting from the sale, transfer or other disposition of any property
by the Company or its Subsidiaries (other than sales, transfers and other
dispositions in the ordinary course of business), (c) all other extraordinary
items, (d) any item constituting the cumulative effect of a change in accounting
principles, prior to applicable income taxes, (e) repayment of the WCG Synthetic
Lease and (1) for the third Fiscal Quarter of 2002 only, margin and capital or
adequate assurances relating to its refining and marketing and EMT.

         "Collateral" shall have the meaning specified in Section 1.1 of the L/C
Agreement.

         "Collateral Agent" means Citicorp, USA, Inc. in its capacity as
"Collateral Agent" pursuant to the L/C Collateral Documents and the LIC
Agreement.

         "Credit Documents" means the Primary Credit Agreement, the L/C
Agreement, the L/C Collateral Documents, the Letter of Credit Documents, each
Letter of Credit, all documents, instruments, agreements, certificates and
notices at any time executed and/or delivered to the "Agent," any "Issuing
Bank," or any "Bank" (as such terms are defined in each of the Primary Credit
Agreement and the L/C Agreement) in connection therewith.

         "EMT" means Williams Energy Marketing & Trading Company.

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

         "Financing Transaction" means, with respect to any Person, any
individual or group of related Persons (i) prepaid forward sales of oil, gas,
minerals or other Assets by such Person, (ii) interest rate, currency, commodity
or other swaps, collars, caps, options or other derivatives or (iii) sales or
transfers of Assets, the primary effect of which or an important purpose of
which is to receive money or credit in advance coupled with an obligation to
repay or perform in the future to effect repayment thereof, including any
contract monetization or production payment. Notwithstanding the foregoing, the
following transactions, if entered into in the ordinary course of business by
the Company or any of its affiliates and otherwise permitted hereunder, shall be
deemed not to be Financing Transactions: (a) sales or exchanges of property
fully delivered within 90 days of receipt of the first payment by a counterparty
therefor, (b) interest rate, currency, commodity or other swaps, collars, caps,
options or other derivatives (including prepayment of forward sales of property
by a counterparty of the Company or any of its affiliates to hedge against the
credit risk of such counterparty, provided that the forward delivery obligation
with respect to the property sold must be fully performed within 120 days), and
(c) "riskless" forward sales or exchanges of property whereby a third party
guarantees the performance obligations of the Company or any of its affiliates
to deliver such property without subrogation or other recourse against the
Company or any of its affiliates by any party to the transaction. The term
"contract monetization" as used in this definition means the acceleration of
cash flows a contract party expects to receive from such contract pursuant to
which the contract party retains a significant ongoing obligation to perform,
but shall in any event exclude transactions commonly referred to as
securitizations. The term "production payment" as used in this definition means
a limited-term non-cost bearing right to receive produced hydrocarbons or the
proceeds

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therefrom satisfiable in cash or in kind up to an aggregate defined amount of
cash and/or hydrocarbons.

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

         "Fiscal Year" means any period of twelve consecutive calendar months
ending on December 31; references to a Fiscal Year with a number corresponding
to any calendar year (e.g., the "2002 Fiscal Year") refer to the Fiscal Year
ending on December 31 of such calendar year.

         "Guarantor" means, collectively, Williams Gas Pipeline Company, L.L.C.,
a Delaware limited liability company, and Williams Production Holdings L.L.C., a
Delaware limited liability company.

         "Hedge Agreements" means interest rate swap, cap or collar agreements,
interest rate future or option contracts, currency swap agreements, currency
future or option contracts and other hedging obligations.

         "Holdings Guaranty" means that certain guaranty executed by RMT LLC in
substantially the form of Exhibit J to the L/C Agreement, as amended,
supplemented or modified from time to time.

         "Hydrocarbons" means oil, gas, casinghead gas, condensate, distillate,
and liquid hydrocarbons.

         "Interest Expense" means, for any period, the gross interest expense
(determined in accordance with generally accepted accounting principles) of the
Company and its Consolidated Subsidiaries accrued for such period, including
that attributable to the capitalized amount of obligations owing under Capital
Leases, all debt discount amortized in such period and all commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers' acceptance financing, net of interest income (determined in accordance
with generally accepted accounting principles) of the Company and its
Consolidated Subsidiaries, but excluding such interest expense, debt discount,
commissions, discounts and other fees and charges and interest income to the
extent attributable to the Non-Recourse Debt of Project Financing Subsidiaries.

         "Investment" in any Person means any loan or advance to such Person,
any purchase or other acquisition of any Equity Interests or Debt or the Assets
comprising a division or business unit or a substantial part or all of the
business of such Person, any capital contribution to such Person or any other
direct or indirect investment in such Person, including, without limitation, any
acquisition by way of a merger or consolidation and any arrangement pursuant to
which the investor incurs Debt of the types referred to in clause (viii) or (ix)
of the definition of "Debt" in respect of such Person.

         "L/C Agreement" means that certain Credit Agreement as in effect on
July 31, 2002 among the Company, as borrower, Citibank, N.A., as agent and as
collateral agent, and the other agents, issuing banks and lenders party thereto.

         "L/C Collateral Documents" means the "Security Documents" as defined in
the L/C Agreement.

         "Legacy L/C's" means those outstanding letters of credit as of July 31,
2002 as set forth on Schedule XV of the Primary Credit Agreement, to the extent
such Letters of Credit have not been Cash Collateralized

         "Letter of Credit" has the meaning specified in Section 1.1 of the L/C
Agreement.

         "Letter of Credit Documents" means, with respect to any Letter of
Credit, collectively, any application therefor and any other agreements,
instruments, guarantees or other documents (whether

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general in application or applicable only to such Letter of Credit) governing or
providing for (a) the rights and obligations of the parties concerned or at risk
with respect to such Letter of Credit or (b) any collateral security for any of
such obligations, each as the same may be modified and supplemented and in
effect from time to time.

         "LLC Guaranty" means, collectively, the agreements executed by the
Guarantor in form and substance satisfactory to the Administrative Agent
guarantying, unconditionally, the payment of the Obligation, as the same may be
amended, modified or supplemented from time to time.

         "Major Subsidiary" means any Subsidiary of the Company with Assets
having a book value of $1,000,000,000 or more.

         "MAPL" means Mid-America Pipeline Company, a Delaware corporation.

         "MAPL Asset Disposition" means the sale, transfer or other distribution
of the Equity Interests in or Assets of MAPL.

         "Material Subsidiary" means (i) each Major Subsidiary and each other
Subsidiary of the Company (other than a Project Financing Subsidiary) that
itself (on an unconsolidated, stand alone basis) owns in excess of 5% of the
book value of the Consolidated Assets of the Company and its Consolidated
Subsidiaries, (ii) each of TGPL, TGT and NWP and (iii) each Subsidiary that owns
any direct or indirect interest in TGPL, TGT and NWP.

         "Midstream Assets" means all Assets now owned or hereafter acquired by
the Company or any of its Subsidiaries, which are either individually, or in
conjunction with other Midstream Assets, necessary for the conduct of the
Midstream Business by the Company and its Subsidiaries, including the Refineries
in Alaska and Tennessee, except that "Midstream Assets" shall not include (a)
the assets being part of either of the MAPL Asset Disposition or Seminole Asset
Disposition unless the MAPL Disposition or Seminole Asset Disposition, as
applicable, shall not have occurred on or prior to the date that is 60 days from
July 31, 2002, and (b) any Assets of Williams GP LLC, Williams Energy Partners
L.P. or any of their Subsidiaries.

         "Midstream Business" means the gathering, marketing, dehydrating,
treating, processing, fractionating, refining, storing, selling and transporting
of Hydrocarbons and Refined Hydrocarbons, and any business relating thereto.

         "Midstream Guaranty" means that certain guaranty executed by those
certain guarantors in substantially the form of Exhibit H to the L/C Agreement,
as amended, supplemented or modified from time to time.

         "Net Cash Proceeds" means, with respect to any sale, transfer or other
disposition of any asset or the sale or issuance of any equity interests
(including, without limitation, any capital contribution) by any Person, the
gross cash proceeds received (including any cash received by way of deferred
payment pursuant to a promissory note, receivable or otherwise, but only as and
when received) by or on behalf of such Person in connection with such
transaction net of only (a) reasonable transaction costs, including customary
and reasonable brokerage commissions, underwriting fees and discounts, legal
fees, fees paid to accountants and financial advisors, finder's fees and other
similar fees and commissions, (b) the amount of taxes payable in connection with
or as a result of such transaction, (c) the amount of any Debt by the terms of
the agreement or instrument governing such Debt (including, without limitation,
the Barrett Loan Agreement), that is required to be repaid or cash
collateralized in the case of letters of credit, upon such disposition,
including any premium, make-whole or breakage amount related thereto, (d)

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payments of unassumed liabilities relating to the assets sold at the time of, or
within 60 days after, the date of such sale, and provided that such gross
proceeds shall not include any portion of such gross cash proceeds which the
Company determines in good faith should be reserved for post-closing adjustments
(including indemnification payments, tax expenses and purchase price
adjustments, to the extent the Person delivers to the Administrative Agent a
certificate signed by an Officer of such Person as to such determination), it
being understood and agreed that on the day that all such post-closing
adjustments have been determined (which shall not be later than 120 days
following the date of the respective TWC Asset Disposition; provided, further
that such 120-day period shall be extended to the extent any amount of such
proceeds is subject to a good faith dispute or claim), the amount (if any) by
which the reserved amount in respect of such sale or disposition exceeds the
actual post-closing adjustments payable by such Person shall constitute Net Cash
Proceeds on such date received by such Person from such sale, lease, transfer or
other disposition.

         "Non-Recourse Debt" means (i) any Debt incurred by any Project
Financing Subsidiary to finance the acquisition (other than the acquisition from
the Company or any Subsidiary of the Company that is not a Project Financing
Subsidiary), improvement, installation, design, engineering, construction,
development, completion, maintenance or operation of, or otherwise to pay costs
and expenses relating to or providing financing for, a project listed on
Schedule VI to the L/C Agreement or any new project commenced or acquired after
the date hereof, which Debt does not provide for recourse against the Company or
any Subsidiary of the Company (other than a Project Financing Subsidiary and
such recourse as exists under a Performance Guaranty) or any property or asset
of the Company or any Subsidiary of the Company (other than the property or
assets of a Project Financing Subsidiary) and (ii) any refinancing of such Debt
that does not increase the outstanding principal amount thereof at the time of
the refinancing or increase the property subject to any Lien securing such Debt
or otherwise add additional security or support for such Debt.

         "Performance Guaranty" means any guaranty issued in connection with any
Non-Recourse Debt that (i) if secured, is secured only by assets of or Equity
Interests in a Project Financing Subsidiary, and (ii) guarantees to the provider
of such Non-Recourse Debt or any other Person of the (a) performance of the
improvement, installation, design, engineering, construction, acquisition,
development, completion, maintenance or operation of, or otherwise affects any
such act in respect of, all or any portion of the project that is financed by
such Non-Recourse Debt, (b) completion of the minimum agreed equity
contributions to the relevant Project Finance Subsidiary, or (c) performance by
a Project Financing Subsidiary of obligations to Persons other than the provider
of such Non-Recourse Debt.

         "Prairie Wolf Facility" means the financing provided in connection with
that certain $611,788,868 Joint Venture Sponsor Agreement dated as of December
28, 2000 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the "Sponsor Agreement"), among the Company, as Sponsor, and
Williams Field Services Company, in favor of Prairie Wolf Investors, Arctic Fox
Assets, L.L.C., Williams Energy (Canada), Inc. and the other Indemnified Persons
(as defined in the Sponsor Agreement) listed therein.

         "Prepayment Percentage" means the quotient of (i) the Principal Debt
divided by (ii) the Related Credit Facility Debt (other than that arising under
or related to the Prairie Wolf Facility).

         "Progeny Facilities" means the financing facilities specifically
described on Schedule III hereto.

         "Project Financing Subsidiaries" means any non-material Subsidiary of
the Company whose principal purpose is to incur Non-Recourse Debt and/or
construct, lease, own or operate the assets financed thereby, or to become a
direct or indirect partner, member or other equity participant or owner in a
Business Entity so created, and substantially all the assets of which Subsidiary
or Business Entity are

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limited to those assets being financed (or to be financed), or the operation of
which is being financed (or to be financed), in whole or in part by Non-Recourse
Debt, or to Equity Interests in, or Debt or other obligations of, one or more
other such Subsidiaries or Business Entities, or to Debt or other obligations of
the Company or its Subsidiaries or other Persons. For purposes of this
definition, a "non-material Subsidiary" shall mean any Consolidated Subsidiary
of the Company which, as of the date of the most recent Consolidated balance
sheet of the Company delivered pursuant to Section 8.2(b) or 8.2(c), has total
assets which account for less than five percent (5%) of the total Consolidated
assets of the Company and its Consolidated Subsidiaries, as shown on such
Consolidated balance sheet; provided, that the aggregate assets of the
non-material Subsidiaries shall not comprise more than ten percent (10%) of the
total Consolidated assets of the Company and its Consolidated Subsidiaries, as
shown on such Consolidated balance sheet.

         "Refined Hydrocarbons" means all products refined, separated,
fractionated, settled, and dehydrated from Hydrocarbons and all products derived
therefrom, including, without limitation, kerosene, liquefied petroleum gas,
refined lubricating oils, diesel fuels, drip gasoline, natural gasoline, helium,
sulfur and all other minerals.

         "Refineries" means the equity interest in and assets owned by the
Midstream Business of the Company which produces Refined Hydrocarbons and is
owned collectively by the following Subsidiaries: Williams Express, Inc., a
Delaware corporation, Williams Alaska Pipeline Company, LLC, a Delaware limited
liability company, Williams Alaska Petroleum, Inc., an Alaska corporation,
Williams Alaska Air Cargo Properties, LLC, an Alaska limited liability company,
Williams Lynxs Alaska CargoPort, LLC, an Alaska limited liability company,
Williams Express, Inc., an Alaska corporation, Williams Refining & Marketing,
LLC, a Delaware limited liability company, Williams Olefins, LLC, a Delaware
limited liability company, Williams Olefins Feedstock Pipelines, LLC, a Delaware
limited liability company, Williams Memphis Terminal, Inc., a Delaware
corporation, Williams Generating Memphis, LLC, a Delaware limited liability
company.

         "Related Credit Facility Debt" means, without duplication, the
aggregate amount of all commitments to lend, issue letters of credit or
otherwise make loans, advances or other extensions of credit to the Company or
any of its Affiliates under the Primary Credit Agreement (unless and until the
outstanding "Commitments" thereunder have been reduced to $400,000,000) and the
Progeny Facilities.

         "RMT" means Williams Production RMT Company.

         "RMT LLC' means Williams Production Holding LLC.

         "Seminole Asset Disposition" means the sale, transfer or other
distribution of all or substantially all of the Equity Interests in or assets of
Seminole.

         "Soda Ash" means Williams Soda Products Company and American Soda,
L.L.P.

         "Synthetic Lease" means any lease (including leases that may be
terminated by the lessee at any time) of any property (whether real, personal or
mixed) (i) that is not a capital lease in accordance with generally accepted
accounting principles and (ii) in respect of which the lessee retains or obtains
ownership of the property so leased for federal income tax purposes, other than
any such lease under which such Person is the lessor.

         "Trading Book" means, for any Person, all mark to market daily and
forward traded transactions of such Person inclusive of structured portfolio
transactions consisting primarily of tolling and full requirements transactions.

                                       9

<PAGE>

         "Travel Centers" means Williams TravelCenters, Inc.

         "TWC Asset Dispositions" has the meaning specified in Paragraph 1
herein.

         "TWC Preferred Stock" means the shares of preferred stock of the
Company which may be perpetual preferred stock or mandatorily convertible into
shares of common stock of the Company.

         "WCG Synthetic Lease" means that certain Amended and Restated Lease
between State Street Bank and Trust Company of Connecticut, National
Association, as Lessor and Williams Communications, Inc., as Lessee, dated as of
September 2, 1998, as amended, which has been terminated and was fully repaid on
March 29, 2002.

         "WCG Unwind Transaction" means a transaction in which (i) the Company's
Sale Leaseback transaction with WCG and its Subsidiary, Williams Technology
Center, LLC ("WTC") involving Williams Technology Center and two aircraft dated
September 13, 2001 (the "WCG Sale Leaseback"), is terminated, (ii) in exchange
for such termination, the Company receives a promissory note payable by the
reorganized WCG, WTC and/or the other WCG Subsidiaries, as co-makers in an
amount of $100,000,000 or less, and (iii) consideration from the Company and its
Subsidiaries includes termination of the existing WCG Sale Leaseback, but does
not include any cash payment by the Company or any of its Subsidiaries to WCG or
WTC.

         2.2      Subsection 3.2(c) is hereby amended and restated to read in
its entirety as follows:

         "(c) The Company shall make mandatory prepayments of the Principal Debt
from time to time in an amount equal to the product of (A) fifty percent (50%)
of the Net Cash Proceeds of any and all asset dispositions (other than the MAPL
Disposition, the Seminole Asset Disposition, the sale of the Alaska Refinery,
and the sale or other disposition (other than a redemption) of any Equity
Interests of Williams Energy Partners, L.P. by Williams GP LLC, the general
partner thereof) and one hundred percent (100%) of any issuances of TWC
Preferred Stock after July 31, 2002, multiplied by (B) the Prepayment
Percentage. Any and all amounts required to be prepaid under the preceding
sentence shall be made within three days after such proceeds are received and
shall be made together with (1) all accrued and unpaid interest on the principal
amount so prepaid and (2) any Consequential Loss arising as a result thereof.

         2.3      Section 8.2(b) is hereby amended and restated in its entirety
and replaced with the following:

                  "(b) as soon as available and in any event not later than 60
         days after the end of each of the first three Fiscal Quarters of each
         Fiscal Year of the Company, (1) the Consolidated balance sheet of the
         Company and its Consolidated Subsidiaries as of the end of such Fiscal
         Quarter and the Consolidated statements of income and cash flows of the
         Company and its Consolidated Subsidiaries for the period commencing at
         the end of the previous year and ending with the end of such Fiscal
         Quarter, all in reasonable detail and duly certified (subject to
         year-end audit adjustments and the lack of footnotes) by an authorized
         financial officer of the Company as having been prepared in accordance
         with generally accepted accounting principles; provided that, if any
         financial statement referred to in this Section 8.2(b) is readily
         available on-line through EDGAR as of the date on which such financial
         statement is required to be delivered hereunder, the Company shall not
         be obligated to furnish copies of such financial statement; and (2) a
         certificate of an authorized financial officer of the Company (a)
         stating that he has no knowledge that a Default or Event of Default has
         occurred and is continuing or, if a Default or Event of

                                       10

<PAGE>

         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 (b) showing in detail the calculation supporting
         such statement in respect of Section 8.6;"

         2.4      Section 8.2(c) is hereby amended and restated in its entirety
and replaced with the following:

                  "(c)     as soon as available and in any event not later than
         105 days after the end of each Fiscal Year of the Company, (1) a copy
         of the annual audited report for such year for the Company and its
         Consolidated Subsidiaries, including therein Consolidated balance
         sheets of the Company and its Consolidated Subsidiaries as of the end
         of such Fiscal Year and Consolidated statements of income and cash
         flows of the Company and its Consolidated Subsidiaries for such Fiscal
         Year, in each case prepared in accordance with generally accepted
         accounting principles and reported on by Ernst & Young, LLP or other
         independent certified public accountants of recognized standing
         acceptable to the Determining Lenders; provided that if any financial
         statement referred to in this Section 8.2(c) is readily available
         on-line through EDGAR as of the date on which such financial statement
         is required to be delivered hereunder, the Company shall not be
         obligated to furnish copies of such financial statement; and (2) a
         letter of such accounting firm to the Lenders (a) stating that, in the
         course of the regular audit of the business of the Company and its
         Consolidated 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 Event of
         Default has occurred and is continuing, or if in the opinion of such
         accounting firm, a Default or Event of Default has occurred and is
         continuing, a statement as to the nature thereof, and (b) showing in
         detail the calculations supporting such statement in respect of Section
         8.6 (which letter may nevertheless be limited in form, scope and
         substance to the extent required by applicable accounting rules or
         guidelines in effect from time to time)."

         2.5      Section 8.2(d) is hereby amended by deleting the words
"material Subsidiaries" in the second line thereof and replacing them with
"Material Subsidiaries."

         2.6      Section 8.2(e) is hereby amended by deleting the words
"material Subsidiary" in the third line thereof and replacing them with
"Material Subsidiaries."

         2.7      Section 8.2(f) is hereby amended and restated in its entirety
and replaced with the following:

                  "(f)     as soon as possible and in any event within 30
         Business Days after the Company or any ERISA Affiliate of the Company
         knows or has reason to know (A) 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 or any ERISA
         Affiliate of the Company or (B) 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 or any ERISA Affiliate of the
         Company, 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 or such Subsidiary or such ERISA
         Affiliate proposes to take with respect thereto."

         2.8      Section 8.2(l) is hereby amended by adding at the end thereof
a new clause (1) to read as follows:

                                       11

<PAGE>

                  "(1)     promptly after any officer of the Company obtains
         knowledge thereof, notice of (A) any material violation of,
         noncompliance with, or remedial obligations under, any Environmental
         Protection Statute, and (B) any material release or threatened material
         release of Hazardous Substance or Hazardous Waste affecting any
         property owned, leased or operated by the Company or any Subsidiary of
         the Company that the Company or such Subsidiary is compelled by the
         requirements of any Environmental Protection Statute to report to any
         governmental agency, department, board or other instrumentality."

         2.9      Section 8.3 is hereby amended by deleting the words "material
Subsidiary" commencing in the first line thereof and replacing them with
"Material Subsidiary."

         2.10     Section 8.5 is hereby amended in its entirety and replaced
with the following:

                  "8.5     Liens, Etc. The Company shall not create, assume,
         incur or suffer to exist, or permit any of its Subsidiaries to create,
         assume, incur or suffer to exist, any Lien on or in respect of any of
         its property, whether now owned or hereafter acquired, or assign or
         otherwise convey, or permit any such Subsidiary to assign or otherwise
         convey, any right to receive income, in each case to secure or provide
         for the payment of any Debt, trade payable or other obligation or
         liability or any Person (other than obligations or liabilities that are
         (i) neither Debt nor trade payables, (ii) incurred, and are owed to
         trading counterparties, in the ordinary course of the Company or any of
         its Subsidiaries, and (iii) secured only by cash, short-term
         investments or a Letter of Credit); provided however, that
         notwithstanding the foregoing (1) the Company or any of its
         Subsidiaries may create, incur, assume or suffer to exist Permitted
         Liens, and (2) RMT and RMT LLC may create, incur, assume or suffer to
         exist any Lien created pursuant to the Barrett Loan Agreement or
         documents related thereto."

         2.11     Section 8.6 is hereby amended in its entirety and replaced
with the following:

                  "8.6     Debt Interest Coverage. The Company shall not permit:
         (a) in the case of the Company, the ratio of (i) the aggregate amount
         of Consolidated Debt of the Company and its Consolidated Subsidiaries
         to (ii) the sum of the Consolidated Net Worth of the Company plus the
         aggregate amount of Consolidated Debt of the Company and its
         Consolidated Subsidiaries, to exceed at any time (x) on or before
         December 30, 2002, 0.70 to 1.00, (y) after December 30, 2002 and on or
         before March 30, 2003, 0.68 to 1.00, and (z) after March 30, 2003, 0.65
         to 1.00; (b) in the case of each of TGPL, TGT and NWP, the ratio of (i)
         the aggregate amount of Consolidated Debt of such Subsidiary and its
         Subsidiaries on a Consolidated basis, to (ii) the sum of the
         Consolidated Net Worth of such Subsidiary plus the aggregate amount of
         Consolidated Debt of such Subsidiary and its Subsidiaries on a
         Consolidated basis, to exceed at any time 0.55 to 1.00.; and (c) for
         any period of four consecutive Fiscal Quarters, the ratio of (i) the
         sum of Cash Flow from operations of the Company plus Interest Expense
         of the Company to (ii) Interest Expense of the Company, to be less than
         1.5 to 1.0."

         2.12     Section 8. 7 hereby is amended and restated in its entirety
and replaced with the following:

                  "8.7     Merger and Sale of Assets. The Company shall not
         merge or consolidate with or into any other Person, or sell, lease or
         otherwise transfer a material part of its assets, or permit any of its
         Major Subsidiaries to merge or consolidate with or into any other
         Person, or sell, lease or otherwise transfer a material part of such
         Major Subsidiary's assets, except that this Section 8.17 shall not
         prohibit any sale or transfer permitted by Section 8.16 or any TWC
         Asset Disposition."

                                       12

<PAGE>

         2.13     Section 8.8 is hereby amended and restated in its entirety and
replaced with the following:

                  "8.8     Agreements to Restrict Certain Transfers. The Company
         shall not enter into or suffer to exist, or permit any of its
         Subsidiaries to enter into or suffer to exist, any consensual
         encumbrance or restriction on its ability or the ability of any of its
         Subsidiaries (i) to pay, directly or indirectly, dividends or make any
         other distributions in respect of its capital stock or pay any Debt or
         other obligation owed to the Company or to any of its Subsidiaries; or
         (ii) to make loans or advances to the Company or any Subsidiary
         thereof, except (1) encumbrances and restrictions on any Subsidiary
         that is not a Material Subsidiary, (2) those encumbrances and
         restrictions existing on July 31, 2002, (3) other customary
         encumbrances and restrictions now or hereafter existing of the Company
         or any Subsidiary thereof 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 the date hereof, (4) encumbrances or
         restrictions on any Subsidiary that is obligated to pay Non-Recourse
         Debt arising in connection with such Non-Recourse Debt, (5)
         encumbrances and restrictions on Williams Energy Partners L.P. and (6)
         encumbrances and restrictions on any Subsidiary pursuant to the Barrett
         Loan Agreement."

         2.14     Section 8.9 is hereby amended and restated in its entirety and
replaced with the following:

                  "8.9     Loans and Advances; Investments. 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 or
         Equity Interests of, any WCG Subsidiary, except that the Company and
         its Subsidiaries may (i) permit to remain outstanding, and to replace
         or refinance, loans and advances and other financing arrangements to,
         or Equity Interest in, a WCG Subsidiary existing or owned (in the case
         of such Equity Interests) as of the date hereof and listed on Exhibit F
         hereto, but no such replacement or refinancing shall exceed the amount
         of such loans, advances or other amounts outstanding immediately prior
         to such replacement or refinancing, (ii) pursuant to the WCG Unwind
         Transaction, acquire and own the promissory note referred to in clause
         (ii) of the definition herein of WCG Unwind Transaction, and (iii)
         receive any distribution from WCG or any Subsidiary thereof in
         connection with the bankruptcy proceedings of WCG or any Subsidiary
         thereof. Except for those investments permitted in subsections (i),
         (ii), and (iii) above, the Company shall not, and the Company shall not
         permit any of its Subsidiaries to, acquire or otherwise invest in
         Equity Interests in, or make any loan or advance to, a WCG Subsidiary."

         2.15     Section 8.10 is hereby and restated in its entirety and
replaced with the following:

                  "8.10    Maintenance of Ownership of Certain Subsidiaries.
         Except with respect to Williams Energy Partners L.P. and its
         Subsidiaries, the Company shall not sell, issue or otherwise dispose
         of, or create, assume, incur or suffer to exist any Lien on or in
         respect of, or permit any of its Subsidiaries to sell, issue or
         otherwise dispose of or create, assume, incur or suffer to exist any
         Lien on or in respect of, any Equity Interests or any direct or
         indirect interest in any Equity Interests in itself, NWP, TGPL, TGT, or
         any of the Company's Material Subsidiaries; provided, however, that
         this Section 8.10 shall not prohibit (i) Permitted Liens, (ii) the sale
         or other disposition of the Equity Interests in any Subsidiary of the
         Company to the Company or any Wholly-Owned Subsidiary of the Company
         if, but only if, (x) there shall not exist or result a Default or Event
         of Default and (y) in the case of each sale or other disposition

                                       13

<PAGE>

         referred to in this proviso involving the Company or any of its
         Subsidiaries, such sale or other disposition could not reasonably be
         expected to impair materially the ability of the Company to perform its
         obligations hereunder and any other Loan Documents and the Company
         shall continue to exist, (iii) any Subsidiary from selling or otherwise
         disposing of any direct or indirect Equity Interests in any Subsidiary
         (other than TPGL, TGT, or NWP) of the Company (iv) any TWC Asset
         Disposition, or (v) the sale or other disposition of the Equity
         Interests in any Subsidiary of RMT LLC required pursuant to, and in
         accordance with, the Barrett Loan Agreement; provided that, after
         giving effect to any such sale or other disposition of any Equity
         Interests owned directly or indirectly by a Major Subsidiary, such
         Subsidiary continues to be a Major Subsidiary. 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."

         2.16     Section 8.12 is hereby amended by deleting the word
"Subsidiary" in the third line thereof and replacing it with "Material
Subsidiary."

         2.17     Section 8J3 is hereby amended and restated in its entirety and
replaced with the following:

                  "8.13    Guarantees. After the date of the Amendment, the
         Company shall not enter into any agreement to guarantee or otherwise
         become contingently liable for, or permit any of its Subsidiaries to
         guarantee or otherwise become contingently liable for, Debt or any
         other obligation of any WCG Subsidiary or to otherwise assure a WCG
         Subsidiary, or any creditor of a WCG Subsidiary, against loss, except
         for any guarantees permitted by the L/C Agreement and the Holdings
         Guaranty."

         2.18     Section 8.14 is hereby amended and restated in its entirety
and replaced with the following:

                  "8.14    Sale and Lease-Back Transactions. The Company shall
         not enter into, or permit any of its Subsidiaries to enter into, any
         Sale and Lease-Back Transaction, if after giving effect thereto the
         Company would not be permitted to incur at least $1.00 of additional
         Debt secured by a Lien permitted by paragraph (y) of Schedule I."

         2.19     The following Sections are hereby added as Sections 8.16
through 8.21 as follows:

                  "8.16    Asset Disposition. The Company shall not sell, lease,
         transfer or otherwise dispose of, or permit any of their Material
         Subsidiaries to sell, lease, transfer or otherwise dispose of, any
         property of the Company or any Material Subsidiary of the Company,
         except (i) sales of inventory in the ordinary course of business and on
         reasonable terms, (ii) sales of worn out or obsolete equipment in the
         ordinary course of business, if no Event of Default exists at the time
         of such sale, (iii) replacement of equipment in the ordinary course of
         business with other equipment at least as useful and beneficial to the
         Company or its Material Subsidiaries and their respective businesses as
         the equipment replaced if no Event of Default exists at the time of
         such replacement and an Acceptable Security Interest exists in such
         other equipment at the time of such replacement, (iv) sales of other
         immaterial Property (other than Equity Interests, Debt or other
         obligations of any Subsidiary) in the ordinary course of business and
         on reasonable terms, if no Event of Default exists at the time of such
         sale; provided that Property may not be sold pursuant to this clause
         (iv) if the aggregate fair market value of all Property sold pursuant
         to this clause (iv) exceeds $250,000 in any year, (v) sales of assets
         which are not Collateral for cash in arm's length

                                       14

<PAGE>

         transactions; (vi) sales or other dispositions of WPC or the
         Refineries, (vii) sales of MAPL and Seminole and (viii) sales or other
         dispositions of assets of Williams GP LLC or Williams Energy Partners
         L.P.; provided that (A) the proceeds from any disposition permitted
         pursuant to clauses (i) through (vii) shall be applied in accordance
         with the terms and conditions of this Agreement and (B) assets disposed
         of pursuant to clauses (i) through (v) shall not constitute a material
         part of the assets of TGPL, TGT or NWP. Notwithstanding anything in
         this Section 8.16 to the contrary, and for greater certainty, nothing
         in this Agreement shall prohibit (1) the transfer of Equity Interests
         of RMT from the Company to RMT LLC or (2) RMT LLC, RMT and their
         respective Subsidiaries from selling, leasing, transferring or
         otherwise disposing of any property of RMT LLC, RMT and their
         respective Subsidiaries required in accordance with the provisions of
         the Barrett Loan Agreement."

                  8.17     Restricted Payments. The Company shall not declare or
         pay any dividends, purchase, redeem, retire, defease or otherwise
         acquire for value any of its Equity Interests now or hereafter
         outstanding, return any capital to its stockholders, partners or
         members (or the equivalent Persons thereof) as such, make any
         distribution of assets, Equity Interests, obligations or securities to
         its stockholders, partners or members (or the equivalent Person
         thereof) as such or issue or sell any Equity Interests or accept any
         capital contributions, or permit any of its Subsidiaries to do any of
         the foregoing, or permit any of its Subsidiaries to purchase, redeem,
         retire, defease or otherwise acquire for value any Equity Interests in
         the Company or to issue or sell any Equity Interests therein, or make
         any prepayment with respect to any Debt (other than the Progeny
         Facilities or Debt of Williams Energy Partners L.P. and its
         Subsidiaries) or repurchase any Debt securities except as required by
         the terms thereof in effect on the date hereof, except that, so long as
         no Default shall have occurred and be continuing at the time of any
         action described in clause (a) through (d) below or would result
         therefrom:

                           (a)      the Company may (A) declare and pay cash
                  dividends and distributions on its (1) 9 7/8% Cumulative
                  Convertible Preferred Stock, (2) December 2000 Cumulative
                  Convertible Preferred Stock and (3) March 2001 Mandatorily
                  Convertible Single Reset Preferred Stock, (B) declare and pay
                  cash dividends and distributions on TWC Preferred Stock issued
                  on or after July 30, 2002 in form and substance satisfactory
                  to the Administrative Agent and (C) in any Fiscal Quarter,
                  declare and pay cash dividends to its stockholders and
                  purchase, redeem, retire or otherwise acquire shares of its
                  own outstanding capital stock for cash if after giving effect
                  thereto the aggregate amount of such dividends, purchases,
                  redemptions, retirements and acquisitions paid or made in any
                  such Fiscal Quarter would be no greater than the sum of
                  $6,250,000;

                           (b)      any Subsidiaries of the Company may (A)
                  declare and pay cash dividends to the Company and (B) declare
                  and pay cash dividends to any other Guarantor under the L/C
                  Agreement of which it is a Subsidiary;

                           (c)      Williams Energy Partners L.P. may declare
                  and pay cash distributions to its unitholders; provided that
                  any such cash distribution shall comply with the partnership
                  agreement governing Williams Energy Partners L.P.; and

                           (d)      Apco Argentina, Inc. may declare and pay
                  dividends in accordance with applicable laws and its governing
                  documents.

                  8.18     Investment in Other Persons. The Company shall not
         make or hold, or permit any of its Subsidiaries to make or hold, any
         Investment in any Person, except (i) equity Investments by the company
         and its Subsidiaries in their Subsidiaries outstanding on the date
         hereof and

                                       15

<PAGE>

         additional investments in Subsidiaries engaged in businesses reasonably
         related to the businesses carried on by such Company and its
         Subsidiaries on the date hereof; (ii) loans and advances to employees
         in the ordinary course of the business of the company and its
         Subsidiaries as presently conducted; (iii) Investments of the company
         and its Subsidiaries in Cash Equivalents; (iv) Investments existing on
         the date hereof; (v) Investments by the company in Hedge Agreements
         entered into in the ordinary course of business and not for speculative
         purposes; (vi) Investments consisting of intercompany debt; and (vii)
         other Investments in an aggregate amount invested not to exceed
         $50,000,000 annually; provided that with respect to Investments made
         under this clause (vii): (1) any newly acquired or organized Subsidiary
         of the company or any of its Subsidiaries shall be a wholly owned
         Subsidiary thereof; (2) immediately before and after giving effect
         thereto, no Default shall have occurred and be continuing or would
         result therefrom; and (3) the company or business acquired or invested
         in pursuant to this clause (vii) shall be in the same line of business
         as the business of the Company or any of its Subsidiaries.

                  8.19     Subsidiary Debt. The Company shall not permit any of
         its Subsidiaries to create, incur, assume or suffer to exist Debt,
         other than (i) Debt incurred, assumed or suffered to exist by TGPL,
         TGT, NWP, and Williams Energy Partners L.P. and its Subsidiaries, (ii)
         Debt incurred, assumed or suffered to exist by Subsidiaries (other than
         those referred to in clause (i) and the Subsidiaries the stock of which
         is pledged under the Pledge Agreement (as defined in the L/C
         Agreement)) in an aggregate amount equal to $50,000,000, (iii) Debt in
         existence on the date hereof, (iv) Debt under the LLC Guaranty, the
         Midstream Guaranty and the Holdings Guaranty, (v) Debt of the Project
         Financing Subsidiaries, (vi) Debt under the Barrett Loan Agreement, and
         (vii) Debt consisting of intercompany debt so long as obligations of
         the debtors thereunder are subordinated to their obligations under the
         Loan Papers and are incurred in the ordinary course of the cash
         management systems of the Company and its Subsidiaries.

                  8.20     Compliance with Primary Credit Agreement. The Company
         and its Subsidiaries shall comply at all times with the terms and
         provisions of Articles V and VI of the Primary Credit Agreement as in
         effect as of July 3 1, 2002 (including, without limitation, as such
         Primary Credit Agreement shall have been amended pursuant to the
         Consent and Fourth Amendment dated as of July 31, 2002)."

                  8.21     Borrower Liquidity Reserve. The Company shall cause
         RMT to at all times maintain the Borrower Liquidity Reserve (as defined
         in the Barrett Loan Agreement).

         2.20     Schedule I is hereby amended in its entirety and replaced with
Schedule I set forth on Annex A attached hereto.

         2.21     The Term Loan Agreement is hereby amended by adding a new
Schedule III attached hereto as Annex B.

         2.22     Section 12 is amended by adding the following new Section
12.17, such section to appear in appropriate numerical order therein:

                  "12.17   Guaranty. As an inducement to the Administrative
         Agent and the Lenders to enter into this Agreement, Company shall cause
         the Guarantor to execute and deliver to the Administrative Agent the
         LLC Guaranty and the Holdings Guaranty, each providing for the guaranty
         of payment and performance of the Obligation."

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:

                                       16

<PAGE>

                  (a)      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.

                  (b)      Counterparts of the LLC Guaranty shall have been
         executed and delivered to the Administrative Agent by the Guarantor or
         when the Administrative Agent shall have received telecopied, telexed,
         or other evidence satisfactory to it that the Guarantor has executed
         and is delivering to the Administrative Agent counterparts thereof.

                  (c)      The Administrative Agent shall have received from the
         Company and Guarantor a certificate dated as of the Amendment Effective
         Date (defined below) of its secretary, assistant secretary, manager or
         general partner as applicable (i) as to resolutions of its board of
         directors or managers or their equivalent authorizing the execution and
         performance of this Amendment and the LLC Guaranty, as applicable, (ii)
         the certificate or articles of incorporation, the bylaws, or the
         limited liability company agreement, as applicable, and (ii) if the
         officer executing this Amendment and the LLC Guaranty is not named in
         the incumbency certificate delivered at the time of execution of the
         Term Loan Agreement, as to the incumbency and signature of said
         officer.

                  (d)      The Administrative Agent shall have received
         favorable opinions of William G. von Glahn, General Counsel of the
         Company, and Skadden, Arps, Slate, Meagher & Flom LLP, counsel for the
         Company, as to the due authorization, execution and delivery of this
         Amendment.

                  (e)      Evidence satisfactory to the Administrative Agent
         that the Company shall have received gross cash proceeds from the TWC
         Asset Dispositions, the Barrett Loan and the issuance of TWC Preferred
         Stock in the aggregate amount of no less than $2,100,000,000.

                  (f)      The Company shall have entered into (i) the L/C
         Agreement, and (ii) a Consent and Fourth Amendment to the Primary
         Credit Agreement, each in form and substance satisfactory to
         Administrative Agent and the Determining Lenders, and all conditions
         precedent to the effectiveness thereof shall have been fully satisfied.

                  (g)      The Administrative Agent shall have received such
         other assurances, certificates, documents and consents as the
         Administrative Agent may require.

Upon satisfaction of the foregoing conditions, this Amendment shall be deemed
effective on and as of July 3 1, 2002 (the "Amendment Effective Date").

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 except to the extent such representations and warranties relate to
an earlier date; and (b) no Default or Potential Default exists under the Loan
Papers.

Paragraph 5. Miscellaneous.

                                       17

<PAGE>

         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, the LLC
Guaranty, 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      Fees. The Company shall pay to each Lender that shall have
approved this Amendment and shall have delivered to the Administrative Agent a
duly executed counterpart hereof not later than 12:00 noon central standard time
on July 31, 2002, a fee equal to the product of each such Lender's respective
Committed Sum and the greater of (a) 0.10% or (b) the highest percentage paid to
any lender as a fee (whether as an "amendment fee" or otherwise) for or relating
to the execution and delivery of the waiver or amendment of any of the other
Progeny Facilities entered into contemporaneously herewith.

         5.4      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.

         5.5      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 Guarantor, each Determining Lender, and Administrative Agent.

         5.6      Undertaking; Post Closing Actions. The parties to this
Amendment hereby agree and undertake to each use their best efforts and to act
diligently and promptly in taking any action or step necessary to resolve or
correct any error, omission, open item or general inconsistency or other
discrepancy which may exist, or of which the parties hereto may hereafter become
aware, herein, in any other Loan Paper, or any other Credit Document.

         5.7      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 INTENTIONALLY LEFT BLANK

                             SIGNATURE PAGES FOLLOW]

                                       18

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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
Attn: Treasurer
Telephone No.: (918) 573-5551                 By:  /s/  James G. Ivey
Facsimile No.: (918) 573-2065                 Name: James G. Ivey
                                              Title: Treasurer

With a copy to:

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

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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          WILLIAMS GAS PIPELINE COMPANY, L.L.C.
Tulsa, Oklahoma 74172
Attn: Treasurer                          By: /s/  James G. Ivey
Telephone No.: (918) 573-5551            Name: James G. Ivey
Facsimile No.: (918) 573-2065            Title: Asst. Treasurer

With a copy to:

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

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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          WILLIAMS PRODUCTION HOLDINGS L.L.C.
Tulsa, Oklahoma 74172
Attn: Treasurer                          By: /s/  James G. Ivey
Telephone No.: (918) 573-5551            Name: James G. Ivey
Facsimile No.: (918) 573-2065            Title: Asst. Treasurer

With a copy to:

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

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

Signature Page to that certain Fifth Amendment to Term Loan Agreement dated
effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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/ Bernard Waymuller
                                         Name: Bernard Waymuller
                                         Title: Senior 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

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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
Atlanta, Georgia 30309                   CAYMAN BRANCHES, as Syndication Agent,
Attn: Brian Campbell                     as a Lender and as a Designating Lender
Telephone: (404) 888-6518
Facsimile:  (404) 888-6539               By: ___________________________________
                                         Name: _________________________________
                                         Title: ________________________________

With a copy to:                          By: ___________________________________
                                         Name: _________________________________
Holland & Knight                         Title: ________________________________
1201 West Peachtree Street, Suite 2000
Atlanta, Georgia 30309
Attn: Ms. Sherie Holmes
Telephone: (404) 898-8197
Facsimile: (404) 881-0470

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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 FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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, as
Houston, Texas 77002                     Documentation Agent and as a Lender
Attn: Joe Latanzie
Telephone: (713) 759-3435                By: /s/ Nadine Bell
Facsimile: (713) 752-2425                Name: Nadine Bell
                                         Title: Senior Manager

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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., as a
Washington, DC 20036                     Lender
Attn: David Young
Telephone: (202) 842-7956                By: /s/ David J. Young
Facsimile: (202) 842-7955                Name: David J. Young
                                         Title: Vice President

                                         By: /s/ Nagy S. Kolta
                                         Name: Nagy S. Kolta
                                         Title: Executive Vice President

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

470 Park Avenue South                    BANK POLSKA KASA OFIEKI S.A., as a
32nd Street, 15th Floor                  Lender
New York, New York 10016
Attn: Hussein El-Tawil                   By: /s/  Hussein El-Tawil
Telephone: (212) 251-1245                Name:  Hussein El-Tawil
Facsimile: (212) 679-5910                Title: Vice President

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

Strong Capital Management                STRONG ADVANTAGE FUND, INC. as a
100 Heritage Reserve                     Lender
Attn: Joe Ford
Menomonee Falls, Wisconsin 53201         By: /s/ Gilbert L. Southwell, III
Telephone: (414) 973-5266                Name: Gilbert L. Southwell, III
Facsimile: (414) 973-5239                Title: Assistant Secretary

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

685 3rd. Ave. 29th Floor,                CHANG HWA COMMERCIAL BANK, LTD.,
New York, New York 10017                 NEW YORK BRANCH, as a Lender
Attn: Peter Lien
Telephone: (212) 651-9770                By:____________________________________
Facsimile: (212) 651-9785                Name: _________________________________
                                         Title:_________________________________

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

76 Madison Avenue, 12th Floor            FIRST COMMERCIAL BANK - NEW YORK
New York, New York 10016                 AGENCY, as a Lender
Attn: Max Kwok
Telephone: (212) 684-9248                By:____________________________________
Facsimile: (212) 684-9315                Name: _________________________________
                                         Title:_________________________________

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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, as a Lender
New York, New York 10017
Attn: Bill Shepard                       By:____________________________________
Telephone: (212) 922-2323                Name: _________________________________
Facsimile: (212) 922-2309                Title:_________________________________

                                         By:____________________________________
                                         Name: _________________________________
                                         Title:_________________________________

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

200 Madison Avenue, Suite 20007          IIUA NAN COMMERCIAL BANK, LTD., as a
New York, New York 10016                 Lender
Attn: Frank Tang
Telephone: (646) 435-1881                By:____________________________________
Facsimile: (212) 417-9341                Name: _________________________________
                                         Title:_________________________________

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

150 East 42nd Street, 29th Floor         BAYERISCIIIE EIYPO-TJND VEREINSBANK AG,
New York, New York 10017                 NEW YORK BRANCH, as a Lender
Attn: Steve Atwell
Telephone: (212) 672-5458                By: /s/  Steven Atwell
Facsimile: (212) 672-5530                Name: Steven Atwell
                                         Title: Director

                                         By: /s/  Shannon Batchman
                                         Name: Shannon Batchman
                                         Title: Director

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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
Attn: Filip Ferrante                     By: /s/ Jean Pierre Diels
Telephone: (404) 584-5466                Name: Jean Pierre Diels
Facsimile: (404) 584-5465                Title:First Vice President

                                         By: /s/ Eric Raskin
                                         Name: Eric Raskin
                                         Title: Vice President

With a copy to:

125 West 55th Street
New York, New York 10019
Attn: Diane Grimmig
Telephone: (212) 541-0707
Facsimile: (212) 541-0784

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fourth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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 55098                     - GIROZENTRALE -
Attn: Wolf-Rudiger Stahl                 as a Lender
Telephone: (011) 49-61-31-132747
Facsimile: (011) 49-61-31-132599         By:  /s/ Wolf-Rudiger Stahl
                                         Name: Wolf-Rudiger Stahl
                                         Title: Senior Vice President

                                         By: /s/ Beatrix Eberz
                                         Name: Beatrix Eberz
                                         Title: Assistant Vice President

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

Ursulinenstrabe 2                        LANDESBANK SAAR GIROZENTRALE, as a
66111 Saarbrucken, Germany               Lender
Attn: Rolf Buchholz
Telephone: (011)49-681-383-1304          By:  /s/ Ulrich Hildebrandt
Facsimile: (011) 49-681-383-1208         Name: Ulrich Hildebrandt
                                         Title: Senior Vice President

                                         By: /s/ Reiner Montag
                                         Name: Reiner Montag
                                         Title: Senior Vice President

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

Martensdamm 6                            LANDESBANK SCULES WIG-HOLSTEIN
Kiel, Germany 24103                      GIROZENTRALE, as a Lender
Attn: Kerstin Spaeter
Telephone: (011) 49-431-900-2765         By:  __________________________________
Facsimile: (011) 49-431-900-1794         Name: _________________________________
                                         Title:_________________________________

                                         By:____________________________________
                                         Name: _________________________________
                                         Title:_________________________________

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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
Attn: Jonathan Kuo
Telephone: (213) 532-3789                By:____________________________________
Facsimile: (213) 532-3766                Name: _________________________________
                                         Title:_________________________________

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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., as a Lender
Tulsa, Oklahoma 74136
Attn: Elisabeth Blue                     By /s/ Elisabeth F. Blue
Telephone: (918) 497-2422                Name: Elisabeth F. Blue
Facsimile: (918) 497-2497                Title: Senior Vice President

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, 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., GRAND
New York; New York 10171                 CAYMAN BRANCH, as a Lender
Attn: Wendy Wanninger
Telephone: (212) 303-9807                By: /s/ Robert J. McNeill
Facsimile: (212) 888-2958                Name: Robert J. McNeill
                                         Title: Executive Manager

                                         By: /s/ Athansasia Stephanides
                                         Name: Athanasia Stephanides
                                         Title: Executive Manager

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

1200 Smith Street, Suite 3100            BNP PARIBAS, as a Lender
Houston, Texas 77002
Attn: Mark Cox                           By: /s/ Barton D. Schouest
Telephone: (713) 982-1152                Name: Barton D. Schouest
Facsimile: (713) 859-6915                Title: Managing Director

With a copy to:                          By: /s/ Greg Smothers
                                         Name: Greg Smothers
1200 Smith Street, Suite 3100            Title Vice President
Houston, Texas 77002
Attn:     David Dodd
Telephone:   (713) 982-1156
Facsimile:   (713) 859-6915

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

135 Bishopsgate                          THE ROYAL BANK OF SCOTLAND plc, as a
London, England EC2M 3UR                 Lender
Attn: Jane Woodley
Telephone: (011) 44-207-375-5724         By:____________________________________
Facsimile: (011) 44-207-375-5919         Name: _________________________________
                                         Title:_________________________________

With a copy to:

JP Morgan Chase Towers
600 Travis, Suite 6070
Houston, Texas 77002
Attn: Adam Pettifer
Telephone: (713) 221-2416
Facsimile: (713) 221-2430

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

277 Park Avenue, 6th Floor               SUMITOMO MITSUI BANKNG
New York, New York 10172                 CORPORATION, as a Lender
Attn: Kenneth Austin
Telephone: (212) 224-4043                By: /s/ John C. Kissinger
Facsimile: (212) 224-4384                Name: John C. Kissinger
                                         Tit1e: General Manager

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

1221 McKinney Street, Suite 4100        MIZUHO CORPORATE BANK, LTD. as a
Houston, TX 77010                       Lender
Attn: Jacques Azagury
Telephone: (713) 650-7845               By: /s/ Jacques Azagury
Facsimile: (713) 759-0717               Name: Jacques Azagury
                                        Title: Senior Vice President and Manager

With a copy to:

1221 McKinney Street, Suite 4100
Houston, TX 77010
Attn: Scott Chappell
Telephone: (713) 650-7828
Facsimile: (713) 759-0717

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

         Signature Page to that certain Fifth Amendment to Term Loan Agreement
dated effective as of July 31, 2002, among The Williams Companies, Inc., as the
Company, the Guarantor named therein, Credit Lyonnais New York Branch, as
Administrative Agent and as a Lender, and certain Lenders named therein.

55 East 52nd Street                      UFJ BANK LIMITED, as a Lender
New York, New York 10055
Attn: Ryoichi Konishi                    By:____________________________________
Telephone: (212) 339-6172                Name: _________________________________
Facsimile: (212) 754-2360                Title:_________________________________

                       [SIGNATURE PAGE TO FIFTH AMENDMENT
                             TO TERM LOAN AGREEMENT]

<PAGE>

                                     ANNEX A

                                   Schedule I

                                 PERMITTED LIENS

(a)      (i)      Any Lien existing on any property at the time of the
acquisition thereof and not created in contemplation of such acquisition by the
Company or any of its Subsidiaries, whether or not assumed by the Company or any
of its Subsidiaries, (ii) purchase money, construction or analogous Liens
securing obligations incurred in connection with or financing the direct or
indirect costs of or relating to the acquisition, construction (including
design, engineering, installation, testing and other related activities),
development (including drilling), improvement, repair or replacement of property
(including such Liens securing Debt or other obligations incurred in connection
with the foregoing or within 30 days of the later of (x) the date on which such
Property was acquired or construction, development, improvement, repair or
replacement thereof was complete or (y) if applicable, the final "in service"
date for commencement of full operations of such property), provided that all
such Liens attach only to the property acquired, constructed, developed,
improved or repaired or constituting replacement property, and the principal
amount of the Debt or other obligations secured by such Lien, together with the
principal amount of all other Debt secured by a Lien on such property, shall not
exceed the gross acquisition, construction, replacement and other costs
specified above of or for the property, (iii) Liens on receivables created
pursuant to a sale, securitization or monetization of such receivables, and
Liens on rights of the Company or any Subsidiary related to such receivables
which are transferred to the purchaser of such receivables in connection with
such sale, securitization or monetization; provided that the Liens secure only
the obligations of the Company or any of its Subsidiaries in connection with
such sale, securitization or monetization, (iv) Liens created by or reserved in
any operating lease (whether for real or personal property) entered into in the
ordinary course of business (excluding Synthetic Leases) provided that the Liens
created thereby (1) attach only to the Property leased to the Company or one of
its Subsidiaries, pursuant to such operating lease and (2) secure only the
obligations under such lease and supporting documents that do not create
obligations other than with respect to the leased property (including for rent
and for compliance with the terms of the lease), (v) Liens on property subject
to a Capital Lease created by such Capital Lease and securing only obligations
under such Capital Lease and supporting documents that do not create obligations
other than with respect to the leased property, (vi) any interest or title of a
lessor in the property subject to any Capital Lease, Synthetic Lease or
operating lease, (vii) Liens in the form of filed Uniform Commercial Code or
personal property security statements (or similar filings outside Canada and the
United States) to perfect any Permitted Lien, and (viii) Liens on up to four
aircraft owned or leased by any Company or any Subsidiary of any the Company.

(b)      Any Lien existing on any property of a Subsidiary of the Company at the
time it becomes a Subsidiary of the Company and not created in contemplation
thereof and any Lien existing on any property of any Person at the time such
Person is merged or liquidated into or consolidated with the Company or any
Subsidiary thereof and not created in contemplation thereof.

(c)      Mechanics', materialmen's, workmen's, warehousemen's, carrier's,
landlord's or other similar Liens arising in the ordinary course of business
securing amounts incurred in the ordinary course of business which are not more
than 90 days past due or are being contested in good faith by appropriate
proceedings.

(d)      Liens arising by reason of pledges, deposits or other security to
secure payment of workmen's compensation insurance or unemployment insurance,
pension plans or systems and other types of social security, and good faith
deposits or other security to secure tenders or leases of property or bids, in
each

                                       1

<PAGE>

case to secure obligations of the Company or any of its Subsidiaries under such
insurance, tender, lease, bid or contract, as the case may be; provided,
however, that the only Liens permitted by this paragraph (d) shall be Liens
incurred in the ordinary course of business that do not secure any Debt or
accounts payable (other than accounts payable to the counterparties or obligees
applicable to the foregoing).

(e)      Liens on deposits or other security given to secure public or statutory
obligations, or to secure or in lieu of surety bonds (other than appeal bonds)
and deposits as security for the payment of taxes or assessments or other
similar charges, in each case to secure obligations of the Company or any of its
Subsidiaries arising in the ordinary course of business; provided, however, that
the aggregate amount of obligations secured by Liens permitted by this paragraph
(e) shall not exceed 10% of Consolidated Tangible Net Worth of the Company.

(f)      Any Lien arising by reason of deposits with or the giving of any form
of security to any governmental agency or any body created or approved by law or
governmental regulation for any purpose at any time as required by law or
governmental regulation (i) as a condition to the transaction by the Company or
any of its Subsidiaries of any business or the exercise by the Company or any of
its Subsidiaries of any privilege or license, (ii) to enable the Company or any
of its Subsidiaries to maintain self-insurance or to participate in any fund for
liability on any insurance risks or (iii) in connection with workmen's
compensation, unemployment insurance, old age pensions or other social security
with respect to the Company or any of its Subsidiaries to share in the
privileges or benefits required for companies participating in such
arrangements.

(g)      Liens incurred in the ordinary course of business upon rights-of-way
securing obligations (other than Debt and trade payables) of the Company or any
of its Subsidiaries.

(h)      Undetermined mortgages and charges incidental to construction or
maintenance arising in the ordinary course of business which are not more than
90 days past due or are being contested in good faith by appropriate
proceedings.

(i)      The right reserved to, or vested in, any municipality or governmental
or other public authority or railroad by the terms of any right, power,
franchise, grant, license, permit or by any provision of law, to terminate or to
require annual or other periodic payments as a condition to the continuance of
such right, power, franchise, grant, license or permit.

(j)      The Lien of taxes, customs duties or other governmental charges or
assessments that are not at the time determined (or, if determined, are not at
the time delinquent), or that are delinquent but the validity of which is being
contested in good faith by the Company or any of its Subsidiaries by appropriate
proceedings and with respect to which reserves in conformity with generally
accepted accounting principles, if required by such principles, have been
provided on the books of the Company or the relevant Subsidiary of any Company,
as the case may be.

(k)      The Lien reserved in (i) leases entered into in the ordinary course of
business for rent and for compliance with the terms of the lease in the case of
real or personal property leasehold estates or (ii) leases and sub-leases
granted to others that do not materially interfere with the ordinary course of
business of the Company and its Subsidiaries, taken as a whole.

(l)      Defects and irregularities in the titles to any property (including
rights-of-way and easements) which are not material to the business, assets,
operations or financial condition of the Company and its Subsidiaries, taken as
a whole.

                                       2

<PAGE>

(m)      Easements, exceptions or reservations in any property of the Company or
any of its Subsidiaries granted or reserved in the ordinary course of business
for the purpose of pipelines, roads, equipment, streets, alleys, highways,
railroads, the removal of oil, gas, coal or other minerals or timber, and other
like purposes, or for the joint or common use of real property, facilities and
equipment, or in favor of governmental authorities or public utilities, in each
case above which do not materially impair the use of such property for the
purposes for which it is held by the Company or such Subsidiary.

(n)      Rights reserved to or vested in any municipality or public authority to
control or regulate any property of the Company or any of its Subsidiaries, or
to use such property in any manner which does not materially impair the use of
such property for the purposes for which it is held by the Company or such
Subsidiary.

(o)      Any obligations or duties, affecting the property of the Company or any
of its Subsidiaries, to any municipality or public authority with respect to any
franchise, grant, license or permit.

(p)      The Liens of any judgments in an aggregate amount for the Company and
all of its Subsidiaries (i) not in excess of $8,500,000, the execution of which
has not been stayed and (ii) not in excess of $40,000,000, the execution of
which has been stayed and which have been appealed and secured, if necessary, by
a stay or appeal bond or other security of similar effect and stay or appeal
bonds in respect of the judgments permitted in clause (ii).

(q)      Zoning laws and ordinances.

(r)      Liens existing on July 1, 2002, that secure only Debt and other
obligations incurred or committed and available for draw down on or prior to or
outstanding on July 1, 2002.

(s)      Liens existing on July 1, 2002 (i) that cover only immaterial assets
and (ii) that secure only Debt and other obligations incurred or committed and
available for draw down on or prior to or outstanding on July 1, 2002.

(t)      Liens reserved in customary oil, gas and/or mineral leases for bonus or
rental payments and for compliance with the terms of such leases and Liens
reserved in customary operating agreements, farm-out and farm-in agreements,
exploration agreements, development agreements and other similar agreements for
compliance with the terms of such agreements; provided that (i) such Liens do
not secure Debt or accounts payable (other than obligations under such lease or
agreement, as the case may be) and (ii) such leases and agreements are entered
into in the ordinary course of business.

(u)      Liens arising in the ordinary course of business out of all presently
existing and future division and transfer orders, advance payment agreements,
processing contracts, gas processing plant agreements, operating agreements, gas
balancing or deferred production agreements, participation, joint venture, joint
operating, pooling, unitization or communitization agreements, pipeline,
gathering or transportation agreements, platform agreements, drilling contracts,
injection or repressuring agreements, cycling agreements, construction
agreements, salt water or other disposal agreements, leases, sub-leases or
rental agreements, royalty interests, overriding royalty interests, farm-out and
farm-in agreements, exploration and development agreements, and any and all
other contracts or agreements covering, arising out of, used or useful in
connection with or pertaining to the exploration, development, operation,
production, sale, use, purchase, exchange, storage, separation, dehydration,
treatment, compression, gathering, transportation, processing, improvement,
marketing, disposal or handling of any property of a Person (each such order,
agreement or contract being a "Subject Document"), provided that and to the
extent that (i) such Subject Documents are entered into the ordinary course of
business and contain terms customary for such documents in the industry, (ii)
such permitted Liens shall not include any security interests in

                                       3

<PAGE>

accounts receivable or other receivables and do not secure Debt or accounts
payable (other than accounts payable arising under the particular Subject
Document that creates the Lien), and (iii) such Subject Documents do not create
nor do such Liens secure Financing Transactions.

(v)      Liens arising by law under Section 9.343 of the Texas Uniform
Commercial Code or similar statutes of states other than Texas.

(w)      Liens arising pursuant to the L/C Collateral Documents which secure the
obligations of the Company and its Subsidiaries under the Primary Credit
Agreement and the L/C Agreement and certain public debt of the Company.

(x)      Liens in existence prior to the date hereof in the nature of a right of
offset or netting of cash amounts owed arising in the ordinary course of
business (and Liens on the trading receivables owed by any trading counterparty
and/or affiliate thereof to the Company or any affiliate thereof granted by the
Company or any such affiliate thereof under agreements commonly in use in the
industry of the Company or such affiliate, but solely to secure the offset or
netting rights of such trading counterparty and/or affiliates thereof to the
payment of such trading receivables arising from and to the extent of the
trading obligations of the Company or any affiliate thereof to such trading
counterparty or its affiliates).

(y)      Any Lien not permitted by paragraphs (a) through (x) above or (z)
through (ii) below securing Debt of the Company or any of its Subsidiaries if at
the time of, and after giving effect to, the creation or assumption of any such
Lien, the aggregate (without duplication) of the principal or equivalent amount
of all Debt of the Company and its Subsidiaries secured by all such Liens not so
permitted by paragraphs (a) through (x) above or (z) through (ii) below plus the
amount of Attributable Obligations (other than those relating to Liens described
in clause (a) (viii) ) of the Company and its Subsidiaries in respect of Sale
and Lease-Back Transactions permitted by Section 8.14 does not exceed
$100,000,000.

(z)      To the extent applicable, any overriding royalties or other rights of
Pacific Northwest Pipeline Corporation, a Delaware corporation ("Pacific") and
Phillips Petroleum Company ("Phillips") or their respective successors in
interest under a contract dated January 9, 1953, as amended, between Phillips
and Pacific, to which the Company is successor in interest; and the obligations
of the Company to surrender, transfer, release or reassign the leases or
interests or rights to which said instruments relate under the conditions and
upon the occurrence of the events specified in said instruments.

(aa)     Any option or other agreement to purchase any property of any Company
or any Subsidiary the purchase, sale or other disposition of which is not
prohibited by any other provision of this Agreement.

(bb)     Liens securing reimbursement obligations with respect to letters of
credit that encumber documents and other property relating to such letters of
credit and the proceeds and products thereof.

(cc)     Liens on the products and proceeds (including insurance, condemnation
and eminent domain proceeds) of and accessions to, and contract or other rights
(including rights under insurance policies and product warranties) derivative of
or relating to, property permitted to be subject to Liens under this Agreement
but subject to the same restrictions and limitations herein set forth as to
Liens on such property (including the requirement that such Liens on products,
proceeds, accessions and rights secure only obligations that such property is
permitted to secure).

(dd)     Liens on the Property of a Project Finance Subsidiary or the Equity
Interests in such Project Finance Subsidiary securing the Non-Recourse Debt of
such Project Finance Subsidiary.

                                       4

<PAGE>

(ee)     Liens on cash and short-term investments incurred in the ordinary
course of business, consistent with past practice and not for the purpose of
securing Debt (i) deposited by the Company or any of its Subsidiaries in margin
accounts with or on behalf of futures contract brokers or other counterparties
or (ii) pledged by the Company or any of its Subsidiaries, in the case of each
of clauses (i) and (ii) above, to secure its obligations with respect to (x)
contracts (including without limitation, physical delivery, option (whether cash
or financial), exchange, swap and futures contracts) for the purchase or sale of
any energy-related commodity or (y) interest rate or currency rate management
contracts.

(ff)     Liens securing Debt of Williams Energy Partners LP and/or its
Subsidiaries; provided that such Liens shall only apply to assets owned directly
by Williams Energy Partners LP and/or its Subsidiaries.

(gg)     Liens securing the Barrett Loan.

(hh)     Liens securing Permitted Refinancing Debt (as defined below) (and
related obligations) covering the substantially the same collateral) securing
(immediately prior to such refinancing) the Debt Refinanced (as defined below)
by such Permitted Refinancing Debt; provided that: (i) the principal amount of
such Permitted Refinancing Debt does not exceed the principal amount of the Debt
Refinanced (plus the amount of penalties, premiums (including required premiums
and the amount of any premiums reasonably determined by any Company being in its
best economic interest and as necessary to accomplish such Refinancing by means
of a tender offer or privately negotiated repurchase), fees, accrued interest
and reasonable expenses and other obligations incurred in connection therewith)
at the time of refinancing; and (ii) such Debt is incurred either by the Company
or by such Subsidiary that is the obligor of the Debt being Refinanced.
"Permitted Refinancing Debt" means any Debt (other than Debt referred to clause
(gg) above) of any Company or any of its Subsidiaries issued to Refinance other
Debt of the Company or any such Subsidiaries. "Refinance" means, in respect of
any Debt (other than Debt referred to clause (gg) above), to refinance, extend,
renew, refund, repay, prepay, replace, acquire, redeem, defease or retire, or to
issue other Debt in exchange or replacement, directly or indirectly for, such
Debt in whole or in part.

(ii)     Liens extending, renewing or replacing any of the foregoing Liens
(other than Liens referred to in clause (gg) above), provided that the principal
amount of the Debt or other obligation secured by such Lien is not increased or
the maturity thereof shortened and such Lien is not extended to cover any
additional Debt, obligations or property, other than like obligations of no
greater principal amount and the substitution of like property (or specific
categories of property of the same grantor to the extent the terms of the Lien
being extended, renewed or replaced, extended to or covered such categories of
property) of no greater value.

                                       5

<PAGE>

                                     ANNEX B

                                  Schedule III

                               PROGENY FACILITIES

$200,000,000 Parent Support Agreement dated as of December 23, 1998, made by The
Williams Companies, Inc. in favor of Castle Associates L. P. and Colchester LLC
and the other Indemnified Persons listed therein, as amended.

Amended and Restated Guarantee dated as of July 25, 2000, issued by The Williams
Companies, Inc. for the benefit of The Commonwealth Plan, Inc. and CBL Capital
Corporation, as amended. WFS-Pipeline Company, as lessee and Commonwealth, as
lessor entered into a Lease Agreement dated as of December 29, 1995.
WFS-Offshore Gathering Company, as lessee, and CBL, as lessor, entered into a
Lease Agreement dated December 29, 1995, as amended and restated.

$400,000,000 Term Loan Agreement dated as of April 7, 2000, among The Williams
Companies, Inc., as Borrower, and Credit Lyonnais New York Branch, as
Administrative Agent, and the Lenders named therein, as amended.

$192,570,931 aggregate Amended and Restated Participation Agreements (2 separate
leases) dated as of January 28, 2002, among Williams Oil Gathering, L.L.C. and
Williams Field Services -- Gulf Coast Company, L.P., as Lessees, Williams Field
Services Company, as Construction Agent, The Williams Companies, Inc., as
Guarantor, First Security Bank, N.A. as Certificate Trustee, Wells Fargo Bank
Nevada, N.A., as Collateral Agent, Bank of America, N.A., as Administrative
Agent and Administrator, and financial institutions named therein as Certificate
Holders, as amended.

$200,000,000 Term Loan Agreement dated as of January 29, 1999, among The
Williams Companies, Inc., as Borrower, and The Fuji Bank, Limited, as
Administrative Agent, and the Banks named therein, as amended.

$611,788,868 Joint Venture Sponsor Agreement dated as of December 28, 2000,
among he Williams Company, Inc., as Sponsor, and Williams Field Services
Company, in favor of Prairie Wolf Investors, Arctic Fox Assets, L.L.C., Williams
Energy (Canada), Inc. and the other Indemnified Persons listed therein, as
amended.

Letter of Credit and Reimbursement Agreement dated as of May 15, 1994, among
Tulsa Parking Authority, The Williams Companies, Inc., Bank of Oklahoma,
National Association, and Bank of America, N.A. (formerly Nationsbank of Texas,
N.A.), relative to Tulsa Parking Authority First Mortgage Revenue Bonds, as
amended.

$127,000,000 Master Agreement dated as of March 6, 2000, among The Williams
Companies, Inc., as Guarantor, Williams TravelCenters, Inc., as Lessee, Atlantic
Financial Group, Ltd., as Lessor, SunTrust Bank, as Agent, and the Lenders named
therein, as amended.

$100,000,000 PPH Sponsor Agreement dated as of December 31, 2001, by The
Williams Companies, Inc., as Sponsor, in favor of Piceance Production Holdings
LLC, Plowshare Investors LLC, and other Indemnified Persons listed in the
agreement, as amended.

Legacy L/C's

                                        1

<PAGE>

All documents, instruments, agreements, certificates and notices at any time
executed and/or delivered in connection with any of the foregoing.

                                        2<PAGE>
                                                                   EXHIBIT 10.38

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK
                                        I

IN RE

WILLIAMS COMMUNICATIONS GROUP,:         Chapter 11 Case No.
INC. and CO AUSTRIA, INC.,              02-11957 (BRL)
                                        (Jointly Administered)
          Debtors.
                                        I

         SECOND AMENDED JOINT CHAPTER 11 PLAN OF REORGANIZATION OF WILLIAMS
COMMUNICATIONS GROUP, INC. AND CG AUSTRIA, INC.

                                        JONES, DAY, REAVIS & POGUE
                                        222 East 41 ~ Street
                                        New York, New York 1Q017
                                        (212) 326-3939
                                        Corinne Ball, Esq. (CB - 8302)
                                        Erica M. Ryland, Esq. (ER - 2057)
                                        Counsel to the Debtors and
                                        Debtors in Possession
                                        KIRKLAND & ELLIS
                                        153 East 53rd Street
                                        New York, New York 10022-4675
                                        (212) 446-4800
                                        James H. M. Sprayregen, Esq.
                                        Richard L. Wynne, Esq.
                                        Counsel to the Official Committee of
                                         Unsecured Creditors

                                        SCHULTE ROTh & ZABEL LLP
                                        919 Third Avenue
                                        New York, New York 10022
                                        (212)756-2000
                                        Michael L. Cook, Esq.
                                        Michael R. Littenberg, Esq.
                                        Counsel to Leucadia National Corporation

Dated: August 12, 2002

                                       1
<PAGE>
<Table>
<S>                                                                                                                            <C>
ARTICLE I         DEFINITIONS AND INTERPRETATION.                                                                                4
         Section 1.1       Definitions                                                                                          14
         Section 1.2       Interpretation                                                                                       14
         Section 1.3       Application of Definitions and Rules of Construction Contained in the Bankruptcy Code                14
         Section 1.4       Other Terms                                                                                          14
         Section 1.5       Plan Schedules and Plan Documents                                                                    14
ARTICLE II        CLASSIFICATION AND TREATMENT OF CLAIMS AND EQUITY INTERESTS                                                   14
         Section 2.1       No Classification of Administrative Claims and Priority Tax Claims                                   14
         Section 2.2       Treatment of Administrative Claims                                                                   15
         Section 2.3       Treatment of Priority Tax Claims                                                                     16
         Section 2.4       Classification and Treatment of Claims and Equity Interests Classified                               16
         Section 2.5       Maximum Distribution                                                                                 18
         Section 2.6       Lock-Up Noteholder Consideration                                                                     18
         Section 2.7       Separate Classification of Claims                                                                    18
         Section 2.8       Classification Rules                                                                                 18
         Section 2.9       Impairment Controversies                                                                             18
         Section 2.10      Confirmation Without Acceptance by All Impaired Classes                                              19
         Section 2.11      Treatment of Executory Contracts and Unexpired Leases                                                19
ARTICLE III       The TWC Settlement                                                                                            20
         Section 3.1       Implementation of TWC Settlement Agreement                                                           20
         Section 3.2       TWC Contributed Distribution                                                                         20
         Section 3.3       Channeling Injunction                                                                                20
ARTICLE IV        CONFIRMATION OF THE PLAN                                                                                      21
         Section 4.1       Conditions Precedent to Confirmation of the Plan                                                     21
         Section 4.2       Conditions Precedent to the Occurrence of the Effective Date                                         22
         Section 4.3       Waiver of Conditions                                                                                 22
         Section 4.4       Effect of Confirmation of the Plan                                                                   23
ARTICLE V         MEANS FOR IMPLEMENTATION OF THE PLAN                                                                          27
         Section 5.1       Corporate Existence                                                                                  27
         Section 5.2       Governance                                                                                           27
         Section 5.3       The New Charter; New Bylaws, Amended Old WCG Charter and the Amended Old WCG Bylaws                  28
         Section 5.4       Effectuating Documents                                                                               28
         Section 5.5       Transactions on the Effective Date                                                                   28
ARTICLE VI        PROVISIONS GOVERNING DISTRIBUTIONS AND FOR RESOLVING AND TREATING CONTESTED CLAIMS                            29
         Section 6.1       Powers and Duties of the Disbursing Agent                                                            29
         Section 6.2       Disbursing Agent/Residual Trustee                                                                    29
         Section 6.3       Means of Cash Payment                                                                                29
         Section 6.4       Delivery of Distributions                                                                            29
         Section 6.5       Surrender of Notes, Instruments and Securities                                                       30
         Section 6.6       Expenses Incurred On or After the Effective Date and Claims of the Disbursing Agent
                           and the Residual Trustee                                                                             30
         Section 6.7       Time Bar to Cash Payments                                                                            30
         Section 6.8       Exculpation of the Disbursing Agent                                                                  31
         Section 6.9       No Distributions Pending Allowance                                                                   31
         Section 6.10      Objection Deadline                                                                                   31
         Section 6.11      Prosecution of Objections                                                                            31
         Section 6.12      Estimation of Claims                                                                                 31
         Section 6.13      Indenture Trustees as Claim Holder                                                                   32
</Table>

                                       2
<PAGE>

<Table>
<S>                                                                                                                            <C>
ARTICLE VII       RETENTION OF JURISDICTION                                                                                     32
         Section 7.1       Scope of Jurisdiction                                                                                32

ARTICLE VIII      MISCELLANEOUS PROVISIONS                                                                                      33
         Section 8.1       Payment of Statutory Fees                                                                            33
         Section 8.2       No Interest or Attorneys' Fees                                                                       33
         Section 8.3       Modifications to the Plan                                                                            33
         Section 8.4       Revocation of Plan                                                                                   34
         Section 8.5       Exemption From Transfer Taxes                                                                        34
         Section 8.6       Set off Rights                                                                                       34
         Section 8.7       Compliance with Tax Requirements                                                                     34
         Section 8.8       Recognition of Guaranty Rights                                                                       34
         Section 8.9       Compliance With All Applicable Laws                                                                  34
         Section 8.10      Binding Effect                                                                                       35
         Section 8.11      Notices                                                                                              35
         Section 8.12      Governing Law                                                                                        35
         Section 8.13      Severability                                                                                         35
</Table>

                                       3
<PAGE>
          Williams Communications Group, Inc., a Delaware corporation ("WCG")
and CG Austria, Inc., a Delaware corporation ("CG Austria"), each as a debtor
and debtor-in-possession (collectively, the "Debtors"), the official committee
(the "Committee") of unsecured creditors appointed in the above-captioned
chapter 11 cases (the "Chapter 11 Cases"), and Leucadia National Corporation, a
New York corporation ("Leucadia") propose the following chapter 11 plan pursuant
to section 1121(a) of the Bankruptcy Code:

                                    ARTICLE I

                         DEFINITIONS AND INTERPRETATION

Section 1.1       Definitions.

         The capitalized terms used herein shall have the respective meanings
set forth below:

(1)      "Adequate Protection Claim" means any and all claims of the Lenders or
         the Administrative Agent arising under paragraph 3 of the Cash
         Collateral Order.

(2)      "Administrative Agent" means Bank of America, N.A., in its capacity as
         administrative agent under the WCL Credit Documents, or any successor
         administrative agent.

(3)      "Additional Settlement Transactions" means execution, delivery and
         performance under the agreements annexed to the Settlement Agreement,
         other than the Leucadia Investment Agreement, the Leucadia Claims
         Purchase Agreement, and the Building Purchase Agreement

(4)      "Administrative Claim" means a claim against a Debtor or its Estate
         arising on or after the Petition Date and prior to the Effective Date
         for a cost or expense of administration in the Chapter 11 Cases, that
         is entitled to priority or superpriority under sections 503(b),
         507(a)(1), or 507(b) of the Bankruptcy Code, or paragraph 3 of the Cash
         Collateral Order including, without limitation, (a) such of the TWC
         Continuing Contract Claims that are against a Debtor or its Estate, and
         (b) the Indenture Trustee Fees.

(5)      "ADP Claims" means the Causes of Action of TWC against any Person
         arising from WCL's use or acquisition of the property described in that
         certain Amended and Restated Participation Agreement, dated as of
         September 2, 1998, among Williams Communications, Inc., State Street
         Bank and Trust Company of Connecticut, National Association, as
         trustee, and the other parties named therein.

(6)      "Affiliate" means each direct and indirect subsidiary of WCG.

(7)      "Allowed," when used

         (a) with respect to any Claim other than an Administrative Claim means
         any Claim that is not a Disallowed Claim and (i) to the extent it is
         not a Contested Claim as of the Effective Date; (ii) to the extent it
         may be set forth pursuant to any stipulation or agreement that has been
         approved by Final Order (including, but not limited to the Allowed
         Claim of the Lenders pursuant to the Cash Collateral Order); (iii) to
         the extent it is a Contested Claim as of the Effective Date, proof of
         which was filed timely with the Bankruptcy Court, and (A) as to which
         no objection was filed by the Objection Deadline, or (B) as to which an
         objection was filed by the Objection Deadline, to the extent allowed by
         a Final Order; or (iv) which otherwise becomes an Allowed Claim as
         provided herein or in the TWC Settlement Approval Order; and

         (b) with respect to an Administrative Claim, means an Administrative
         Claim that has become "Allowed" pursuant to the procedures set forth
         herein.

(8)      "Asset" means all of a Debtor's property, rights, and interests that
         are property of a Debtor's Estate pursuant to section 541 of the
         Bankruptcy Code.

                                       4
<PAGE>
(9)      "Available Proceeds" means the amount of Cash received at any time by
         WCG from its liquidation of Residual Assets, after the indefeasible
         payment in full in Cash of (a) all amounts outstanding under the
         Restated Credit Documents, (b) the reasonable costs and expenses
         associated with the liquidation (including, without limitation, the
         payment of any taxes, assessments, insurance premiums, repairs, legal
         fees and costs, rent, storage and sales commissions), and (c) if
         applicable, the reasonable costs and expenses associated with the
         Residual Trust as agreed to by the Administrative Agent.

(10)     "Bankruptcy Code" means the Bankruptcy Reform Act of 1978, as amended,
         and codified at title 11 of the United States Code and as applicable to
         the Chapter 11 Cases.

(11)     "Bankruptcy Court" means the United States District Court for the
         Southern District of New York having jurisdiction over the Chapter 11
         Cases and, to the extent any reference is made pursuant to section 157
         of title 28 of the United States Code, the Bankruptcy Court unit of
         such District Court, or any court having competent jurisdiction to hear
         appeals or certiorari petitions therefrom, or any successor thereto
         that may be established by an act of Congress or otherwise, and that
         has competent jurisdiction over the Chapter 11 Cases.

(12)     "Bankruptcy Rules" means the Federal Rules of Bankruptcy Procedure, as
         prescribed by the United States Supreme Court pursuant to section 2075
         of title 28 of the United States Code and as applicable to the Chapter
         11 Cases.

(13)     "Building Purchase Agreement" means the agreement dated as of July 26,
         2002, annexed to the TWC Settlement Agreement, which shall be filed
         with the Bankruptcy Court as a Plan Document, pursuant to which, as a
         component of the TWC Settlement, WTC shall purchase the Building
         Purchase Assets from WHBC.

(14)     "Building Purchase Assets" means all of the real and personal property
         being acquired by WTC pursuant to the Building Purchase Agreement,
         including WCG's headquarters building.

(15)     "Building Purchase Collateral Documents" means the documents,
         instruments, agreements, and mortgages granting to WHBC a first lien
         and security interest in and to all Building Purchase Assets to secure
         payment of the Building Purchase Note, all of which shall be filed with
         the Bankruptcy Court as Plan Documents.

(16)     "Building Purchase Note" means each promissory note relating to WTC's
         purchase of the Building Purchase Assets, made payable (with full
         recourse) by WTC and New WCG (as co-issuers) and guaranteed by WCL, and
         in the form filed with the Bankruptcy Court as a Plan Document.

(17)     "Business Day" means any day except Saturday, Sunday, or a "legal
         holiday" as such term is defined in Bankruptcy Rule 9006(a).

(18)     "Cash" means legal tender of the United States of America.

(19)     "Cash Collateral Order" means that certain order entered by the
         Bankruptcy Court on May 17, 2002, authorizing the Debtors' limited use
         of the Lenders' cash collateral.

(20)     "Causes of Action" means all rights, claims, causes of action,
         defenses, debts, demands, damages, obligations, and liabilities of any
         kind or nature under contract, at law or in equity, known or unknown,
         contingent or matured, liquidated or unliquidated, and all rights and
         remedies with respect thereto, including, without limitation, causes of
         action arising under chapter 5 of the Bankruptcy Code or similar state
         statutes.

(21)     "Channeling Injunction" has the meaning set forth in Section 3.3.
         herein.

(22)     "Chapter 11 Cases" has the meaning set forth in the introductory
         paragraph of the Plan.

                                       5
<PAGE>

(23)     "Claim" means any Cause of Action against a Debtor or its Estate
         arising prior to the Petition Date.

(24)     "Class 5/6 Channeled Actions" means all Causes of Action of holders of
         Class 5 Senior Redeemable Notes Claims and Class 6 Other Unsecured
         Claims, acting in such capacity, against a TWC Released Party or a WCG
         Indemnitee (except for Causes of Action to enforce any obligation of a
         TWC Released Party or WCG Indemnitee under the Plan, a Plan Document,
         or the TWC Settlement Agreement) that is based in whole or in part on
         any act, omission, event, condition, or thing in existence or that
         occurred in whole or in part prior to the Effective Date.

(25)     "Class 5 Ballot Disapproval" means the receipt of Ballots from holders
         of a majority in number or more than one-third in amount of Allowed
         Class 5 Claims indicating that such holders disapprove of the issuance
         of Lock-Up Consideration Shares to Lock-Up Noteholders.

(26)     "Collateral" means any Asset subject to a lien.

(27)     "Committee" has the meaning set forth in the introductory paragraph of
         the Plan.

(28)     "Confirmation Date" means the date on which the Clerk of the Bankruptcy
         Court enters the Confirmation Order on the docket with respect to the
         Chapter 11 Cases and all other conditions to confirmation of the Plan
         set forth herein have been satisfied or waived.

(29)     "Confirmation Hearing" means the hearing held by the Bankruptcy Court,
         as it may be continued from time to time, to consider confirmation of
         the Plan.

(30)     "Confirmation Order" means the order of the Bankruptcy Court conforming
         the Plan in form and substance acceptable to the Proponents, TWC, and
         the Administrative Agent

(31)     "Contested, when used with respect to a Claim, means a Claim (a) that
         is not listed in the Schedules; (b) that is listed in the Schedules,
         but was scheduled as (1) disputed, contingent, or unliquidated (whether
         in whole or in part); or (ii) undisputed, liquidated, and not
         contingent if a proof of claim has been filed with the Bankruptcy Court
         (but only to the extent the proof of claim is of a different nature
         than (i.e., secured, unsecured, priority, administrative, etc.), or
         exceeds the amount of, the Claim listed in the Schedules); or (c) as to
         which an objection has been filed before the Objection Deadline,
         provided, that a Claim that is Allowed by Final Order or pursuant to
         the Plan shall not be a Contested Claim.

(32)     "Debtors" has the meaning set forth in the introductory paragraph of
         the Plan.

(33)     "Declaration of Trust" means the declaration of trust to be executed
         and delivered by WCG and accepted by the Residual Trustee on the
         Effective Date in substantially the form filed by the Debtors with the
         Bankruptcy Court as a Plan Document

(34)     "Disallowed," when used with respect to a Claim, means a Claim that has
         been disallowed by a Final Order.

(35)     "Disbursing Agent" means New WCG or another entity appointed by New WCG
         to act as Disbursing Agent hereunder.

(36)     "Disclosure Statement" means the disclosure statement with respect to
         the Plan, together with all exhibits and annexes thereto and any
         amendments or modifications thereof, as approved by the Bankruptcy
         Court as containing adequate information in accordance with section
         1125 of the Bankruptcy Code.

(37)     "Distribution Date" means, with respect to a particular Claim, the
         later of the Effective Date or the date on which such Claim becomes an
         Allowed Claim.

                                       6
<PAGE>

(38)     "Effective Date" means the date upon which the transactions
         contemplated herein are consummated, which shall be a Business Day
         selected by the Debtors, with the consent of the Proponents, TWC, and
         the Administrative Agent, after the first Business Day (a) which is ten
         (10) days after the Confirmation Date, (b) on which the Confirmation
         Order is not stayed, and (ii) on which all conditions to the entry of
         the Confirmation Order and the occurrence of the Effective Date have
         been satisfied or waived as provided herein.

(39)     "Equity Interest" means any share or other instrument evidencing a
         stock ownership interest in a Debtor, whether or not transferable or
         denominated "stock", or similar security, and any options, warrants,
         convertible security, or other rights to acquire such shares or other
         instruments, or any legal, equitable, or contractual Claim arising
         therefrom, including but not limited to Claims arising from rescission
         of the purchase or sale of an Equity Interest, for damages arising from
         the purchase or sale of an Equity Interest, or for reimbursement or
         contribution on account of such claim.

(40)     "Estate" means the estate of a Debtor created pursuant to section 541
         of the Bankruptcy Code.

(41)     "Estate Causes of Action" means all Causes of Action of the Estates
         against any Person.

(42)     "Fee Application" means an application or other request for
         compensation or reimbursement of expenses incurred in connection with
         the Chapter 11 Cases of a Professional Person under sections 328, 330,
         or 503 of the Bankruptcy Code.

(43)     "Fee Claim" means a Claim Under sections 328, 330, or 503 of the
         Bankruptcy Code for compensation and reimbursement of expenses incurred
         in connection with the Chapter 11 Cases.

(44)     "Final Order" means (a) an order or judgment of the Bankruptcy Court as
         to which the time to appeal, petition for certiorari, or other
         proceedings for reargument or rehearing has expired and as to which no
         appeal, petition for certiorari, or other proceedings for reargument or
         rehearing shall then be pending or, (b)in the event that an appeal,
         petition for certiorari, or motion for rearguxnent or rehearing has
         been sought, such order of the Bankruptcy Court shall have been
         affirmed by the highest court to which such order was appealed or from
         which reargument or rehearing was sought, or certiorari has been
         denied, and the time to take any further appeal, petition for
         certiorari or other proceedings for reargument or rehearing shall have
         expired; provided, however, that no order shall fail to be a Final
         Order solely because of the possibility that a motion pursuant to Rule
         60 of the Federal Rules of Civil Procedure or Rule 7024 of the
         Bankruptcy Rules may be filed with respect to such order.

(45)     "Indenture Trustees" means Wells Fargo Bank, National Association, as
         successor to The Bank of New York, as trustee pursuant to the Senior
         Reset Note Indenture, and Wilmington Trust Company, as successor to The
         Bank of New York, as trustee pursuant to the Senior Redeemable Notes
         Indenture.

(46)     "Indenture Trustee Charging Lien" means any lien or other priority in
         payment to which the Indenture Trustees are entitled (pursuant to the
         Senior Reset Note Indenture or the Senior Redeemable Notes Indenture,
         respectively, or otherwise) against distributions to be made to the
         holders of Senior Reset Note Claims and Senior Redeemable Notes Claims
         for the payment of any Indenture Trustee Fees.

(47)     "Indenture Trustee Fees" means the reasonable compensation, fees,
         expenses, disbursements, advances and indemnity claims, including,
         without limitation, attorneys' and agents' fees, expenses, and
         disbursements, incurred by the Indenture Trustees, whether prior to or
         after the Petition Date and whether prior to or after the consummation
         of the Plan and the occurrence of the Effective Date.

(48)     "Leucadia" has the meaning set forth in the introductory paragraph of
         the Plan.

                                       7
<PAGE>

(49)     "Leucadia Claims Distribution" means shares of New WCG Common
         Stock which shall be issued to Leucadia pursuant to the TWC Settlement
         Agreement and the Plan in respect of the TWC Assigned Claims, in an
         amount that is equal to the difference between (a) 24.55% of the New
         Equity and (b) one half of the percentage of New Equity issued to
         holders of Liquidated Securities Holder Claims, if any, from the
         Securities Holder Channeling Fund pursuant to the Securities Holder
         Channeling Fund Distribution Procedures.

(50)     "Leucadia Claims Purchase Agreement" means that certain Purchase and
         Sale Agreement dated as of July 26, 2002, by and between TWC and
         Leucadia annexed to the TWC Settlement Agreement, which shall be filed
         with the Bankruptcy Court as a Plan Document, pursuant to which, as a
         component of the TWC Settlement, Leucadia has agreed to purchase, and
         TWC has agreed to sell, certain rights associated with the TWC Assigned
         Claims for $180 million in Cash.

(51)     "Leucadia Investment Agreement" means that certain Investment Agreement
         dated as of July 26,2002, by and between WCG and Leucadia (together
         with certain other documents and agreements executed in connection
         therewith) annexed to the TWC Settlement Agreement, which shall be
         filed with the Bankruptcy Court as Plan Documents, pursuant to which,
         as a component of the TWC Settlement, Leucadia has agreed to make the
         New Investment.

(52)     "Leucadia Investment Distribution" means 20.45% of the New Equity,
         which shall be issued to Leucadia pursuant to the Leucadia Investment
         Agreement in exchange for the New Investment

(53)     "Lenders" means the "Lenders" as such term is defined under the WCL
         Credit Agreement.

(54)     "Liquidated Securities Holder Claim" means a Securities Holder Claim
         that becomes entitled to recovery from the Securities Holder Channeling
         Fund pursuant to the Securities Holder Channeling Fund Distribution
         Procedures.

(55)     "Lock-Up Consideration Shares" means 5% of the Unsecured Creditor
         Distribution that is not allocable to holders of Allowed Class 6 Other
         Unsecured Claims.

(56)     "Lock-Up Noteholder Shares" means, with respect to a particular Lock-Up
         Noteholder, the Lock-Up Consideration Shares multiplied by a fraction,
         the numerator of which is the aggregate principal amount of Senior
         Redeemable Notes listed on such Lock-Up Noteholder's signature page to
         the Restructuring Agreement, and the denominator of which is the
         aggregate principal amount of Senior Redeemable Notes listed on all of
         the signature pages to the Restructuring Agreement of all of the
         Lock-Up Noteholders.

(57)     "Lock-Up Noteholders" means the holders of Senior Redeemable Notes who
         signed the Restructuring Agreement on or before April 22, 2002.

(58)     "New Bylaws" means the Bylaws of New WCG substantially in the form
         filed as a Plan Document.

(59)     "New Charter" means the Certificate of Incorporation for New WCG
         substantially in the form filed as a Plan Document.

(60)     "New Equity" means the shares of New WCG Common Stock to be issued
         under the Plan.

(61)     "New Investment" means the purchase of New WCG Common Stock by Leucadia
         for $150 million in Cash pursuant to the Leucadia Investment Agreement.

(62)     "New WCG" means a corporation that is to be incorporated under the laws
         of the State of Nevada and pursuant to the Plan.

                                       8
<PAGE>

(63)     "New WCG Common Stock" means shares of fully paid and non-assessable
         Class A common stock of New WCG, par value $0.01 per share.

(64)     "New WCG Guarantee" means the guarantee by New WCG of WCL's obligations
         under the Restated Credit Documents, in substantially the form filed as
         a Plan Document

(65)     "Objection Deadline" means the deadline for filing objections to Claims
         as set forth in Section 6.10 of the Plan.

(66)     "Old WCG" means WCG on and after the Effective Date.

(67)     "Other Secured Claim" means any Secured Claim that is not a Prepetition
         Secured Guarantee Claim.

(68)     "Other Unsecured Claim" means any Claim that is not an Administrative
         Claim, a Priority Non-Tax Claim, a Priority Tax Claim, a Secured Claim,
         a TWC Assigned Claim, a Senior Redeemable Notes Claim, a Subordinated
         Claim, or a Claim held by an Affiliate.

(69)     "Person" means an individual, corporation, partnership, limited
         liability company, joint venture, trust, estate, unincorporated
         association, unincorporated organization, governmental entity, or
         political subdivision thereof, or any other entity.

(70)     "Petition Date" means April 22, 2002, the date on which the Chapter 11
         Cases were commenced.

(71)     "Plan" means this chapter 11 plan, the Plan Schedules, the Plan
         Documents, and all supplements, appendices, and schedules thereto,
         either in their present fonn or as any of them may be amended,
         restated, or modified from time to time, as permitted herein and by the
         TWC Settlement Agreement.

(72)     "Plan Documents" means the documents that aid in effectuating the Plan
         specifically identified herein, including but not limited to, the New
         Charter, the New Bylaws, the Plan Schedules, the TWC Settlement
         Agreement, the Building Purchase Agreement, the Building Purchase
         Collateral Documents, the Building Purchase Note, the Leucadia
         Investment Agreement, and the Leucadia Claims Purchase Agreement, each
         in the form filed with the Bankruptcy Court pursuant to Section 5.4 of
         the Plan.

(73)     "Plan Schedules" means the schedules to the Plan in the form filed as a
         Plan Document.

(74)     "Prepetition Secured Guarantee" means, collectively, the guarantees of
         WCL's obligations under the WCL Credit Agreement (a) by WCG pursuant to
         Article 9 of the WCL Credit Agreement; and (b) by CG Austria pursuant
         to that certain Subsidiary Guarantee Supplement dated November 3, 1999.

(75)     "Prepetition Secured Guarantee Claim" means a Claim with respect to the
         Prepetition Secured Guarantee.

(76)     "Pre-Spin Services Agreement" means the Administrative Services
         Agreement, dated September 30, 1999, by and between certain of the TWC
         Entities, WCG, and certain of the Affiliates.

(77)     "Pre-Spin Services Claims" means all Causes of Action of the TWC
         Entities against any Person arising under the Pre- Spin Services
         Agreement.

(78)     "Priority Non-Tax Claim" means any Claim accorded priority in right of
         payment under section 507(a)(3), (4), (5), (6), or (7) of the
         Bankruptcy Code.

(79)     "Priority Tax Claim" means a Claim of a governmental unit of the kind
         specified in section 507(a)(8) of the Bankruptcy Code.

                                       9
<PAGE>
(80)     "Professional Person" means a Person retained or to be compensated
         pursuant to sections 327, 328, 330, 503(b), or 1103 of the Bankruptcy
         Code.

(81)     "Proponents" means the Debtors, the Committee, and Leucadia.

(82)     "Pro Rata Share" means the proportion that the amount of an Allowed
         Claim bears to the aggregate amount of all Claims in Classes 5 and 6,
         including Contested Claims, but not including Disallowed Claims.

(83)     "Released Lender Parties" means the Administrative Agent, the Lenders,
         the other Agents (as defined in the WCL Credit Agreement) and the
         Issuing Banks (as defined in the WCL Credit Agreement), and each of
         their respective present or former directors, officers, employees,
         attorneys, accountants, underwriters, investment bankers, financial
         advisors, and agents, acting in such capacity.

(84)     "Reorganized CG Austria" means CG Austria, from and after the Effective
         Date.

(85)     "Residual Assets" means, with the exception of any Causes of Action
         against or equity interests in any Affiliate, any and all Assets of
         WCG, including, but not limited to, any and all Causes of Action
         against any Person other than an Affiliate.

(86)     "Residual Claims" means the Claims assigned to the Residual Trust
         pursuant to the provisions herein, but only to the extent the amount of
         such assigned Claims exceeds the value, as of the Effective Date, of
         the New WCG Common Stock distributed to the Residual Trust

(87)     "Residual Share" means the authorized capital stock of Old WCG, which
         shall consist of a single share of common stock, $0.01 par value.

(88)     "Residual Trust" means the grantor trust to be created on the Effective
         Date to hold the equity interests in Old WCG for the benefit of holders
         of Allowed Claims in Classes 5, and 6.

(89)     "Residual Trustee" means the Person appointed by the Administrative
         Agent pursuant to the Declaration of Trust to serve as trustee of the
         Residual Trust.

(90)     "Restated Credit Agreement" means the WCL Credit Agreement as amended
         or amended and restated in a manner that is consistent with the
         requirements of Section 2 of the Restructuring Agreement, in the form
         filed as a Plan Document.

(91)     "Restated Credit Documents" means the WCL Credit Documents and all
         other agreements, instruments and documents executed in connection
         therewith, each as may be amended or amended and restated in a manner
         that is consistent with the requirements of Section 2 of the
         Restructuring Agreement, in the form filed as a Plan Document

(92)     "Restated Guarantee" means the Prepetition Secured Guarantee as amended
         or amended and restated pursuant to the Plan and the Restated Credit
         Agreement.

(93)     "Restructuring Agreement" means that certain agreement, dated as of
         April 19, 2002, among the Debtors, WCL, certain Affiliates, the Lenders
         who are signatories thereto, and the holders of Senior Redeemable Notes
         Claims who are signatories thereto, a copy of which agreement was
         attached as an Exhibit to the Debtors' disclosure statement dated May
         20, 2002.

(94)     "SBC" means SBC Communications, Inc., and each of its direct an
         indirect subsidiaries.

(95)     "SBC Authorization" means either the SBC Consent or an order of a court
         of competent jurisdiction in form and substance reasonably satisfactory
         to Leucadia and WCG providing that SBC does not and will not have a

                                       10
<PAGE>

         right to terminate the Master Alliance Agreement between SBC and WCL
         dated February 12, 1999, by reason of (a) the transactions contemplated
         by the Leucadia Investment Agreement and the Leucadia Claims Purchase
         Agreement; (b) the transactions contemplated by the Plan; and (c) the
         Spin-Off.

(96)     "SBC Consent" means the consent by SBC to (a) the transactions
         contemplated by the Leucadia Investment Agreement and the Leucadia
         Claims Purchase Agreement; (b) the transactions contemplated by the
         Plan; and (c) the Spin-Off, in form and substance reasonably
         satisfactory to the Committee, Leucadia, and WCG.

(97)     "Schedules" means the Debtors' schedules of assets and liabilities and
         the statements of financial affairs on file with the Bankruptcy Court
         pursuant to section 521 of the Bankruptcy Code and Bankruptcy Rule
         1007, as such schedules and statements have been or may be supplemented
         or amended from time to time.

(98)     "Secured Claim" means (a) a Claim secured by a lien on any Asset, which
         lien is valid, perfected, and enforceable under applicable law and is
         not subject to avoidance under the Bankruptcy Code or other applicable
         non-bankruptcy law, but only to the extent of the value of the
         Collateral that secures payment of the Claim; (b) a Claim that is
         subject to a valid right of setoff under section 553 of the Bankruptcy
         Code; and (c) a Claim Allowed under the Plan as a Secured Claim.

(99)     "Securities Holder" means all current and former holders of securities
         issued by the WCG Entities (and all options, agreements, and
         derivatives thereof) acting in such capacity,provided, however, that
         "Securities Holder" shall not include holders of Allowed Claims in
         Classes 5 and 6 under the Plan, acting in such capacity.

(100)    "Securities Holder Channeled Action" means any Cause of Action of a
         Securities Holder against a WCG Indemnitee that is based in whole or in
         part on any act, omission, event, condition, or thing in existence or
         that occurred in whole or in part prior to the Effective Date.

(101)    "Securities Holder Channeling Fund" means (a) the right to receive up
         to 2% of the New WCG Common Stock (on a fully-diluted basis), to the
         extent that holders of Securities Holder Channeled Actions become
         entitled to receive such stock pursuant to the Securities Holder
         Channeling Fund Distribution Procedures; and/or (b) any recoveries that
         can be obtained from officer/director liability insurance policies of
         the Company that cover officers and directors of the Company or the
         Company's obligation to indemnify its officers and directors.

(102)    "Securities Holder Channeling Fund Distribution Procedures" means the
         procedures set forth in a Plan Document for distributions from the
         Securities Holder Channeling Fund providing, among other things, that
         all recoveries from the Securities Holder Channeling Fund shall be pro
         rata based on the ratio that a particular Liquidated Securities Holder
         Action bears to all Liquidated Securities Holder Claims.

(103)    "Senior Redeemable Note" means any note issued by WCG pursuant to the
         Senior Redeemable Notes Indenture.

(104)    "Senior Redeemable Notes Claim" means any Claim that is not a
         Subordinated Claim and that arises under or in connection with a Senior
         Redeemable Note or the Senior Redeemable Notes Indenture.

(105)    "Senior Redeemable Notes Indenture" means, collectively, (a) that
         certain indenture pertaining to those certain 10.70% senior redeemable
         notes due 2007 and 10.875% senior redeemable notes due 2009 issued,
         respectively, in the aggregate principal amounts of $500 million and
         $1.5 billion, dated as of October 6, 1999 (as subsequently amended,
         restated, modified or otherwise supplemented), between WCG, as Issuer
         and The Bank of New York, as Trustee; and (b) that certain indenture
         pertaining to those certain 11.70% senior redeemable notes due 2008 and
         11.875% senior redeemable notes due 2010 issued, respectively, in the
         aggregate principal amounts of $575 million and $425 million, dated as
         of August 8, 2000 (as subsequently

                                       11
<PAGE>

         amended, restated, modified or otherwise supplemented), between WCG, as
         Issuer, and The Bank of New York, as Trustee.

(106)    "Senior Reset Note" means that certain 8.25% senior reset note due 2008
         in the original principal amount of $1.5 billion, issued by WCG to WCG
         Note Trust pursuant to the Senior Reset Note Indenture.

(107)    "Senior Reset Note Claim" means any Claim that arises under or in
         connection with the Senior Reset Note or the Senior Reset Note
         Indenture.

(108)    "Senior Reset Note Indenture" means that certain indenture dated as of
         March 28, 2001 (as subsequently amended, restated, modified or
         supplemented), between WCG as Issuer and the United States Trust
         Company of New York as Trustee, pursuant to which WCG issued the Senior
         Reset Note to WCG Note Trust.

(109)    "Single Holder" means (a) any individual or group of individuals which
         would, if such individual or group owned 5% or more of stock, be a
         "5-percent shareholder" of New WCG Common Stock (other than a "public
         group") pursuant to Treasury Regulations Section 1.382-2T(g) (including
         indirectly through family members or interests in corporations,
         partnerships, trusts, or other entities which directly own New WCG
         Common Stock, pursuant to Treasury Regulations Section 1.382-2T(h)),
         but treating any options to acquire New WCG Common Stock as exercised
         only if such exercise would result in treating the individual or group
         as a "5-percent shareholder" which was not a "qualified creditor"
         within the meaning of Treasury Regulations Section 1.382-9(d); and (b)
         any group of Persons who acquired their Claims as a "coordinated group"
         described in Treasury Regulations Section 1.382-9(d)(3)(ii)(A),
         provided, however, that TWC and Leucadia shall be excluded from this
         definition of "Single Holder" for any Claims that they may hold other
         than Senior Redeemable Notes Claims.

(110)    "Spin-Off" means the tax-free spin-off of WCG from TWC that became
         effective on April 23, 2001.

(111)    "Subordinated Claim" means any Claim that (a) pursuant to a Final Order
         of the Bankruptcy Court, is found to be subordinate in priority of
         payment, whether contractually, equitably, or otherwise, to Allowed
         Claims in Classes 4, 5, and 6; or (b) is a Claim arising from
         rescission of the purchase or sale of a Senior Redeemable Note, for
         damages arising from the purchase or sale of a Senior Redeemable Note,
         or for reimbursement or contribution allowed under Section 502 of the
         Bankruptcy Code on account of such Claim.

(112)    "Trust Agreement" means that certain Amended and Restated Trust
         Agreement dated as of March 28, 2001, among Wilmington Trust Company,
         WCL and WCG Note Trust, as amended, restated, modified or otherwise
         supplemented from time to time.

(113)    "TWC" means The Williams Companies, Inc., a Delaware corporation.

(114)    "TWC Assigned Claims" means Causes of Action that are (a) ADP Claims,
         (b) Pre-Spin Services Claims, or (c) Senior Reset Note Claims.

(115)    "TWC Continuing Contract" means any contract between any of the TWC
         Entities and a Debtor or an Affiliate that is listed in the Plan
         Schedules as either being assumed and assigned under the Plan or as
         being unaffected by the Plan.

(116)    "TWC Continuing Contract Claims" means the Causes of Action of the TWC
         Entities against WCG and the Affiliates under the TWC Continuing
         Contracts, in such amounts, if any, as are set forth in the Plan
         Schedules.

(117)    "TWC Contributed Distribution" means the difference between (a) 55% of
         the New Equity and (b) the proportion that the aggregate amount of all
         Allowed Claims in Classes 5 and 6 bears to the aggregate amount of all
         Allowed Claims in Classes 4, 5, and 6 multiplied by the difference
         between (i) the New Equity and (ii) the Leucadia Investment
         Distribution.

                                       12
<PAGE>

(118)    "TWC Entities" means TWC, together with all of its direct and
         indirect subsidiaries and affiliates.

(119)    "TWC Plan Support Agreement" means that certain agreement, dated
         February 23,2002, by and between TWC and WCG, pursuant to which, among
         other things, TWC agreed to support a chapter 11 plan with respect to
         WCG.

(120)    "TWC Released Parties" means the TWC Entities and each of their
         respective present and fonner shareholders, members, partners,
         directors, managers, officers, employees, agents, attorneys, advisors,
         and accountants, acting in such capacity.

(121)    "TWC Settlement" has the meaning set forth in Section 3.1 herein.

(122)    "TWC Settlement Agreement" means that certain Settlement Agreement
         dated as of July 26,2002, as amended, among the Debtors, the Committee,
         TWC, and Leucadia (including all agreements annexed as Exhibits
         thereto), which, together with all agreements annexed thereto, shall be
         filed with the Bankruptcy Court as Plan Documents.

(123)    "TWC Settlement Approval Order" means the order of the Bankruptcy
         Court, in form and substance reasonably acceptable to the Debtors, the
         Committee, TWC, and Leucadia, granting the TWC Settlement Motion
         pursuant to Bankruptcy Rule 9019, and authorizing the Debtors' entry
         into the TWC Settlement Agreement and approving the transactions,
         compromises, and settlements set forth therein.

(124)    "TWC Settlement Releasee" means a TWC Released Party or a WCG
         Indemnitee, in each case as the context requires.

(125)    "Unsecured Creditor Distribution" means the difference between (a) 55%
         of the New Equity and (b) one half of the percentage of New Equity
         issued to holders of Liquidated Securities Holder Claims, if any, from
         the Securities Holder Channeling Fund pursuant to the Securities Holder
         Channeling Fund Distribution Procedures.

(126)    "TWC Settlement Motion" means the joint motion of the Debtors and the
         Committee for entry of the TWC Settlement Approval Order.

(127)    "WCG" has the meaning set forth in the introductory paragraph of the
         Plan.

(128)    "WCG Note Trust"means WCG Note Trust, a statutory business trust
         established under the laws of the State of Delaware pursuant to the
         Trust Agreement.

(129)    "WCG Entities" means the Debtors and the Affiliates.

(130)    "WCG Indemnitee" means each of the present and former directors,
         managers, officers, employees, agents, attorneys, advisors, and
         accountants of the WCG Entities, acting in such capacity, excluding
         Persons who serve or served as officers of SBC, to the extent such
         Persons possessed conflicts of interest with respect to the WCG
         Entities while acting as directors of WCG in connection with the
         Spin-Off provided, however, that if the SBC Consent shall have been
         obtained, then such officers of SBC shall be deemed to be WCG
         Indemnitees.

(131)    "WCL" means Williams Communications, LLC, a Delaware limited liability
         company.

(132)    "WCL Credit Agreement" means the amended and restated credit agreement,
         dated as of September 8, 1999, among WCL, WCG, the Lenders, the
         Administrative Agent, JP Morgan Chase Bank (f/k/a The Chase Manhattan
         Bank), as Syndication Agent and Salomon Smith Barney, Inc. and Lehman
         Brothers, Inc. as Joint

                                       13
<PAGE>
         Lead Arrangers and Joint Bookrunners with respect to the Incremental
         Facility referred to therein, and Salomon Smith Barney, Inc., Lehman
         Brothers, Inc. and Merrill Lynch & Co., as Co-Documentation Agents, as
         amended, amended and restated, supplemented, or otherwise modified from
         time to time.

(133)    "WCL Credit Documents" means the WCL Credit Agreement, the WCL Security
         Agreement, and all other documents, instruments, agreements, and liens
         executed and delivered in connection therewith, as amended, amended and
         restated, supplemented, or otherwise modified from time to time.

(134)    "WCL Security Agreement" means the security agreement, dated as of
         April 23, 2001, among WCL, WCG, the Subsidiary Loan Parties (as defined
         therein), and the Administrative Agent, as amended, amended and
         restated, supplemented, or otherwise modified from time to time.

(135)    "WHBC" means Williams Headquarters Building Company, a wholly-owned
         subsidiary of TWC. (136) "WTC" means Williams Technology Center, LLC,
         an indirect wholly-owned subsidiary of WCG.

SECTION 1.2 INTERPRETATION.

           Unless otherwise specified, all section, article, and exhibit
references in the Plan are to the respective section in, article of, or exhibit
to, the Plan, as the same may be amended, waived, or modified from time to time.
The headings in the Plan are for convenience of reference only and shall not
limit or otherwise affect the provisions of the Plan. Words denoting the
singular number shall include the plural number and vice versa, and words
denoting one gender shall include the other gender. In the event of an
inconsistency between the Plan and any other document or agreement, the terms
and provisions of the Plan shall govern and control. However, to the extent any
term or provision of the Plan is determined by the Bankruptcy Court to be
ambiguous, the Disclosure Statement may be referred to for purposes of
interpreting such ambiguous term or provision.

SECTION 1.3 APPLICATION OF DEFINITIONS AND RULES OF CONSTRUCTION CONTAINED IN
            THE BANKRUPTCY CODE,

           A term used herein that is not defined herein shall have the meaning
ascribed to that term, if any, in the Bankruptcy Code and interpretive case law.
The rules of construction contained in section 102 of the Bankruptcy Code shall
apply to the construction of the Plan.

SECTION 1.4 OTHER TERMS.

         The words "herein," "hereof," "hereto," "hereunder," and others of
similar import refer to the Plan as a whole and not to any particular section,
subsection, or clause contained in the Plan.

SECTION 1.5 PLAN SCHEDULES AND PLAN DOCUMENTS.

          All Plan Schedules and Plan Documents are incorporated into the Plan
by this reference and are a part of the Plan as if set forth in full herein.

                                   ARTICLE II

           CLASSIFICATION AND TREATMENT OF CLAIMS AND EQUITY INTERESTS

SECTION 2.1 NO CLASSIFICATION OF ADMINISTRATIVE CLAIMS AND PRIORITY TAX CLAIMS.

          As provided in section 1 123(a)(1) of the Bankruptcy Code,
Administrative Claims and Priority Tax Claims shall not be classified for
purposes of voting or receiving distributions under the Plan. All such Claims
shall be treated separately as unclassified Claims on the terms set forth
herein.

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<PAGE>

SECTION 2.2 TREATMENT OF ADMINISTRATIVE CLAIMS.

         (a) Time for Filing Administrative Claims. Except with respect to (i) a
         Fee Claim, (ii) an Adequate Protection Claim, (iii) a TWC Continuing
         Contract Claim, (iv) a liability incurred and paid in the ordinary
         course f business by a Debtor, or (v) an Administrative Claim that has
         been allowed on or before the Effective Date, within ten (10) days
         after service of notice of entry of the Confirmation Order, the holder
         of an Administrative Claim must file with the Bankruptcy Court and
         serve notice of such Administrative Claim upon counsel to the Debtors,
         the Administrative Agent, and the Committee. Such notice must include
         at a minimum (I) the name of the holder of the Claim, (2) the amount of
         the Claim, and (3) the basis of the Claim. Failure to file this notice
         timely and properly shall result in the Administrative Claim being
         forever barred and discharged.

         (b) Time for Filing Fee Claims. Each Professional Person or other
         entity that holds or asserts an Administrative Claim that is a Fee
         Claim incurred before the Effective Date shall be required to file with
         the Bankruptcy Court, and serve on all parties required In receive
         notice, a Fee Application within forty~five (45) days after the
         Effective Date. The failure to file timely the Fee Application shall
         result in the Fee Claim being forever barred and discharged.

         (c) Allowance of Administrative Claims. An Administrative Claim with
         respect to which notice has been properly filed pursuant to Section
         2.2(a) herein shall become an Allowed Administrative Claim if no
         objection is filed within thirty (30) days after the deadline for
         filing and serving a notice of such Administrative Claim specified in
         Section 2.2(a) herein, or such later date as may be approved by the
         Bankruptcy Court on motion of a Debtor. If an objection is filed within
         such thirty-day period (or any, extension thereof), the Administrative
         Claim shall become an Allowed Administrative Claim only to the extent
         allowed by Final Order or as agreed to by a Debtor after consultation
         with the other Proponents and the Administrative Agent An
         Administrative Claim that is a Fee Claim, and with respect to which a
         Fee Application has been properly filed pursuant to Section 2.2(b)
         herein, shall become an Allowed Administrative Claim only to the extent
         allowed by Final Order. An Administrative Claim as to which no notice
         need be filed as set forth in Section 2.2(a)(iii), (iv) or (v) shall be
         an Allowed Administrative Claim on the Effective Date.

         (d) Payment of Allowed Administrative Claims. Each holder of an Allowed
         Administrative Claim shall receive (i) an amount equal to such holder's
         Allowed Claim in one Cash payment on the Distribution Date, or (ii)
         such other treatment as may be agreed upon in writing by such holder
         and a Debtor after consultation with the Proponents and the
         Administrative Agent; provided, however, that an Administrative Claim
         representing a liability incurred in the ordinary course of business of
         a Debtor may be paid at a Debtor's election in the ordinary course of
         business by such Debtor. All Allowed Administrative Claims shall be
         paid by, and shall be the sole responsibility of, the Debtors.

         (e) Payment of Indenture Trustees.

                  (i) Indenture Trustee Fees. All Allowed Indenture Trustee Fees
                  shall be paid in Cash as an Administrative Claim.

                  (ii) Additional Indenture Trustee Fees. To the extent that the
                  Indenture Trustees provide services of any kind or nature on
                  or following the Effective Date, the Indenture Trustees will
                  receive from the Debtors or New WCG, without the need for
                  application to, or approval of, the Bankruptcy Court, all
                  Indenture Trustee Fees incurred from and after the Effective
                  Date, subject to approval by the Debtors or New WCG and the
                  Administrative Agent

                                       15
<PAGE>

         (f) Extinguishment of Adequate Protection Claim. Upon the occurrence of
         the Effective Date, the Adequate Protection Claim shall be extinguished
         in consideration for the treatment afforded the Prepetition Secured
         Guarantee Claims hereunder.

SECTION 2.3 TREATMENT OF PRIORITY TAX CLAIMS.

         Each holder of an Allowed Priority Tax Claim shall receive, in full
satisfaction of such holder's Allowed Priority Tax Claim, (a) the amount of such
holder's Allowed Priority Tax Claim, with simple interest at the rate of 6.00%
per annum or such other rate as the Bankruptcy Court may determine at the
Confirmation Hearing is appropriate, in equal annual Cash payments, beginning on
the Distribution Date and continuing on each anniversary of the Distribution
Date, until the sixth anniversary of the date of assessment of such Claim
(provided that, after consultation with the other Proponents and the
Administrative Agent, New WCG may prepay the balance of any such Allowed
Priority Tax Claim at any time without penalty); (ii) a lesser amount in one
Cash payment as may be agreed upon in writing by such holder after consultation
with the other Proponents and the Administrative Agent; or (iii) such other
treatment as may be agreed upon in writing by such holder and the Debtor, after
consultation with the other Proponents and the Administrative Agent. The
Confirmation Order shall constitute and provide for an injunction by the
Bankruptcy Court as of the Effective Date against any holder of a Priority Tax
Claim from commencing or continuing any action or proceeding against any
responsible person or officer or director of a Debtor or New WCG that otherwise
would be liable to such holder for payment of a Priority Tax Claim so long as
New WCG is not in default of its obligations with respect to such Claim under
this Section.

SECTION 2.4 CLASSIFICATION AND TREATMENT OF CLAIMS AND EQUITY INTERESTS
            CLASSIFIED.

         For purposes of organization, voting, distributions, and all
confirmation matters, except as otherwise provided herein, all Claims and Equity
Interests shall be classified and treated as follows:

         a) Class I: Priority Non-Tax Claims. Each holder of an Allowed Priority
         Non-Tax Claim shall be unimpaired under the Plan and, pursuant to
         section 1124 of the Bankruptcy Code, all of the legal, equitable and
         contractual rights of each holder of an Allowed Priority Non-Tax Claim
         in respect of such Claim shall be fully reinstated and retained as
         though the Chapter 11 Cases had not been filed. Holders of Allowed
         Class 1 Claims shall not be entitled to vote on the Plan and, instead,
         shall be deemed to have accepted the Plan.

         b) Class 2: Prepetition Secured Guarantee Claims. On the Effective
         Date, in full and complete satisfaction of all Allowed Prepetition
         Secured Guarantee Claims, the Administrative Agent shall receive the
         New WCG Guarantee and the Restated Guarantee. Any demand under the New
         WCG Guarantee or the Restated Guarantee shall be made in accordance
         with the terms and conditions of the Restated Credit Documents.
         Notwithstanding any additional security interest that may be granted
         pursuant to the Restated Credit Documents, the Administrative Agent,
         for its benefit and the benefit of the Lenders, shall retain any and
         all security interests in the Assets that were in existence on the
         Petition Date under the WCL Credit Documents and such security
         interests shall continue in full force and effect as if the Chapter 11
         Cases had not been filed. If the requisite number of Lenders do not
         agree before the Voting Deadline to be impaired under the Plan, Class 2
         Claims are not impaired under the Plan and holders of Allowed Class 2
         Claims shall not be entitled to vote on the Plan and, instead, shall be
         deemed to have accepted the Plan. If the requisite number of Lenders
         agree before the Voting Deadline to be impaired under the Plan, Class 2
         Claims shall be impaired under the Plan and holders of Allowed Class 2
         Claims shall be entitled to vote to accept or reject the Plan.

         c) Class 3: Other Secured Claims. On the Distribution Date, in full and
         complete satisfaction of all Other Secured Claims, each holder of an
         Allowed Other Secured Claim shall, in the Debtors' discretion after
         consultation with the Administrative Agent, (i) receive deferred Cash
         payments totaling the Allowed amount of such Claim of a value as of the
         Effective Date at least equal to the value of such holder's interest in
         the Collateral securing its Claim, and shall retain the lien securing
         such Claim and all rights under any instrument evidencing such Claim
         until paid as provided herein; (ii) receive, pursuant to abandonment by
         the Debtors, possession of and the right to foreclose its lien; or
         (iii) be treated in accordance with an agreement between

                                       16
<PAGE>

         the Debtors and the holder of such Allowed Other Secured Claim, after
         consultation with the Administrative Agent Class 3 Claims are impaired
         by the Plan and holders of Allowed Class 3 Claims shall be entitled to
         vote to accept or reject the Plan.

         d) Class 4: TWC Assigned Claims. On the Effective Date, the TWC
         Assigned Claims shall be Allowed Claims in the aggregate amount of
         $2.36 billion, shall have the same priority for all purposes under the
         Plan as Class 5: Senior Redeemable Notes Claims and Class 6: Other
         Unsecured Claims, and shall not be subject to defense, offset,
         reduction, objection, subordination, recharacterization, or any other
         Cause of Action that would reduce, delay, or impede distributions under
         the Plan in respect of the TWC Assigned Claims. On the Effective Date,
         in full and complete satisfaction of all holders' TWC Assigned Claims,
         the TWC Assigned Claims shall be deemed conclusively to have been
         assigned to the Residual Trust, in exchange for the Leucadia Claims
         Distribution and the TWC Contributed Distribution; provided, however,
         that in accordance with the TWC Settlement and as provided in Section
         3.2 of the Plan, New WCG shall issue only the Leucadia Claims
         Distribution and all holders of TWC Assigned Claims shall forever
         forego, waive, and release any and all other Causes of Action against
         the WCG Entities and the WCG Indemnitees with respect to the TWC
         Assigned Claims, including any claim or right to the TWC Contributed
         Distribution. Class 4 Claims are impaired by the Plan and holders of
         Class 4 Claims shall be entitled to vote to accept or reject the Plan.

         e) Class 5: Senior Redeemable Notes Claims. On the Effective Date, each
         Senior Redeemable Notes Claim held by an Affiliate on or after the
         Petition Date shall be disallowed in its entirety. Allowed Senior
         Redeemable Notes shall have the same priority for all purposes under
         the Plan as Class 4: TWC Assigned Claims and Class 6: Other Unsecured
         Claims and, on the Distribution Date, in full and complete satisfaction
         of all holders' Senior Redeemable Notes Claims, each holder of an
         Allowed Senior Redeemable Note: (i) shall be deemed conclusively to
         have assigned its entire Allowed Senior Redeemable Notes Claim,
         together with any and all rights related thereto, to the Residual Trust
         in exchange for such holder's Pro Rats Share of the beneficial
         interests in the Residual Trust and (ii) will receive from the Residual
         Trust such holder's Pro Rats Share of (A) the difference between the
         Unsecured Creditor Distribution and any Lock-Up Consideration Shares
         (but limited to 4.99% of outstanding New WCG Common Stock as of the
         Effective Date to any Single Holder regardless of the Allowed amount of
         such Single Holder's Claim) and (B) any Available Proceeds. Class 5
         Claims are impaired by the Plan and holders of Allowed Class 5 Claims
         shall be entitled to vote to accept or reject the Plan.

         (f) Class 6: Other Unsecured Claims. Allowed Other Unsecured Claims
         shall have the same priority for all purposes under the Plan as Class
         4: TWC Assigned Claims and Class 5: Senior Redeemable Notes Chains. On
         the Distribution Date, in full and complete satisfaction of all
         holders' Other Unsecured Claims, each holder of an Allowed Other
         Unsecured Claim: (1) shall be deemed conclusively to have assigned its
         entire Allowed Unsecured Claim, together with any and all rights
         related thereto, to the Residual Trust in exchange for such holder's
         Pro Rats Share of the beneficial interests in the Residual Trust, and
         (ii) shall receive from the Residual Trust such holder's Pro Rats Share
         of(A) the Unsecured Creditor Distribution (but limited to 4.99% of
         outstanding New WCG Common Stock as of the Effective Date to any Single
         Holder regardless of the Allowed amount of such Single Holder's Claim)
         and (B) any Available Proceeds. Class 6 Claims are impaired by the Plan
         and holders of Allowed Class 6 Claims shall be entitled to vote to
         accept or reject the Plan.

         (g) Class 7: Subordinated Claims. On the Effective Date, each and every
         Subordinated Claim shall be fully and completely discharged and the
         holder thereof shall receive no distribution under the Plan on account
         of such Class 7 Claims. Class 7 Claims are impaired by the Plan and
         holders of such Claims shall not be entitled to vote on the Plan and,
         instead, shall be deemed to have rejected the Plan.

         (h) Class 8: WCG Equity Interests. On the Effective Date, each and
         every Equity Interest in WCG shall be cancelled and discharged and the
         holder thereof shall receive no distribution under the Plan on account
         of such Class 8 WCG Equity Interest Class 8 Equity Interests are
         impaired by the Plan and holders of such Equity Interests shall not be
         entitled to vote on the Plan and, instead, shall be deemed to have
         rejected the Plan.

                                       17
<PAGE>

         (i) Class 9: CG Austria Equity Interests. On the Effective Date, each
         and every Equity Interest in CG Austria shall be reinstated as though
         the Chapter 11 Cases had not been filed. Class 9 Equity Interests shall
         be unimpaired by the Plan. WCL, the sole holder of Class 9 Equity
         Interests, shall not be entitled to vote on the Plan and, instead,
         shall be deemed to have accepted the Plan.

SECTION 2.5 MAXIMUM DISTRIBUTION.

          Notwithstanding the provisions of Section 2.4(e) and 2.4(f) herein,
the maximum aggregate amount of all distributions of New WCG Common Stock under
the Plan to a Single Holder shall be 4.99% and under no circumstances shall a
Single Holder receive New WCG Common Stock under the Plan in excess of such
amount regardless of the Allowed amount or amounts of such Single Holder's Claim
or Claims.

SECTION 2.6 LOCK-UP NOTEHOLDER CONSIDERATION

         On the Effective Date, if there has not been a Class 5 Ballot
Disapproval, then in consideration for each Lock-Up Noteholder's agreement to be
bound by the Restructuring Agreement and agreement not to transfer its holdings
of Senior Redeemable Notes (except as provided in the Restructuring Agreement),
New WCG will issue to each Lock-Up Noteholder its Lock-Up Noteholder Shares;
provided, however, to the extent that (a) the Proponents determine that such
distribution would unduly jeopardize tax assets of New WCG or (b) the Bankruptcy
Court determines that such distribution would cause unfair discrimination among
holders of Allowed Claims or otherwise cause the Plan to violate or be
inconsistent with the provisions of the Bankruptcy Code, then no distribution of
Lock-Up Consideration Shares (or such lesser amount of the Lock-Up Consideration
Shares as may be determined by the Bankruptcy Court or the Proponents) shall be
made.

SECTION 2.7 SEPARATE CLASSIFICATION OF CLAIMS.

         Although class treatments are set forth in consolidated fashion in the
Plan, votes will be tabulated and treatment will be implemented on a
Debtor-by-Debtor basis. In addition, although placed in one category for
purposes of convenience, each Claim that is determined to be an Other Secured
Claim against a Debtor shall be treated as such in a separate Class for purposes
of voting and receiving distributions under the Plan.

SECTION 2.8 CLASSIFICATION RULES.

         A Claim is in a particular Class only to the extent that the Claim
qualifies within the description of Claims of that Class, and such Claim is in a
different Class to the extent that the remainder of the Claim qualifies within
the description of a different Class. Pursuant to section 1 123(a)(4) of the
Bankruptcy Code, all Allowed Claims of a particular Class shall receive the same
treatment unless the Holder of a particular Allowed Claim agrees to a less
favorable treatment for such Allowed Claim. Except with respect to the Leucadia
Claims Distribution, this Plan shall give effect to subordination agreements
which are enforceable under applicable nonbankruptcy law, pursuant to section
510(a) of the Bankruptcy Code, except to the extent the beneficiary or
beneficiaries thereof agree to less favorable treatment This Plan shall also
give effect to the subordination rules of sections 510(b) and (c) of the
Bankruptcy Code. The inclusion of a creditor by name or status in any Class is
for purposes of general description only and includes all Persons claiming as
beneficial interest holders, assignees, heirs, devisees, transferees, or
successors in interest of any kind of the creditor named.

SECTION 2.9 IMPAIRMENT CONTROVERSIES

         If a controversy arises as to whether any Claim or Equity Interest, or
any class of Claims or Class of Equity Interests, is impaired under the Plan,
the Bankruptcy Court shall, after notice and a hearing, determine such
controversy.

                                       18
<PAGE>

SECTION 2.10 CONFIRMATION WITHOUT ACCEPTANCE BY ALL IMPAIRED CLASSES

         Classes 7 and 8 are classes of Claims or Equity Interests that are
deemed to have rejected the Plan. Notwithstanding such rejections (or the
rejection by one or more other impaired classes under the Plan), the Proponents
intend to seek confirmation of the Plan in accordance with section 1129(b) of
the Bankruptcy Code.

SECTION 2.11 TREATMENT OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES

                  (a) Rejection of Executory Contracts and Unexpired Leases.
         Pursuant to Section 365(a) of the Bankruptcy Code, the Plan constitutes
         a motion to reject, upon the occurrence of the Effective Date, each and
         every executory contract and unexpired lease (i) that is listed in the
         Plan Schedules as being rejected pursuant to the Plan, and (ii) except
         for TWC Continuing Contracts, all contracts and leases to which one or
         more TWC Entities are the only parties that are neither a Debtor nor an
         Affiliate. The Confirmation Order shall constitute the Bankruptcy
         Court's approval of such rejections pursuant to section 365(a) of the
         Bankruptcy Code and findings by the Bankruptcy Court that the
         requirements of section 365(a) of the Bankruptcy Code have been
         satisfied with respect to each rejected executory contract or lease,
         and that each such rejection is in the best interests of the Debtors
         and their Estates.

                  (b) Assumptions If Not Rejected. The Plan constitutes a motion
         pursuant to section 365(a) of the Bankruptcy Code by WCG to assume and
         assign to New WCG, and by CG Austria to assume, each and every
         executory contract and unexpired lease of such Debtor (including,
         without limitation, the TWC Continuing Contracts to the extent a Debtor
         is a party thereto) that has not been rejected or that is not being
         rejected, either pursuant to the Plan or by separate motion. The
         Confirmation Order shall constitute the Bankruptcy Court's approval of
         such assumptions and assignments pursuant to section 365(a) of the
         Bankruptcy Code and findings by the Bankruptcy Court that the
         requirements of section 365(b) of the Bankruptcy Code have been
         satisfied with respect to each assumed and assigned contract and lease,
         and that each such assumption and assignment is in the best interests
         of the Debtors and their Estates.

                  (c) Indemnification Obligations. The obligations of a Debtor
         to indemnify, defend, advance litigation expenses, reimburse, or limit
         the liability of any person serving on and after the Petition Date as
         an employee, officer, or director of a Debtor by reason of such
         person's service in such capacity or as may be otherwise provided in a
         Debtor's constituent documents, in a written agreement with a Debtor,
         or in applicable law, each as applicable, shall be treated as executory
         contracts that are being assumed and assigned to New WCG pursuant to
         the Plan and Section 365(a) of the Bankruptcy Code. Accordingly, such
         obligations shall be unimpaired by the Plan irrespective of whether
         such indemnification is owed with respect to an act or event occurring
         before or after the Petition Date;provided, however, that such
         assignment shall in no way release or affect any obligation of Old WCG
         to indemnify, defend, advance litigation expenses, reimburse, or limit
         the liability of such a person.

                 (d) Cure Payments. Any Claim for amounts owed pursuant to
        section 365(b)(l) of the Bankruptcy Code or as a consequence of a
        Debtor's assumption or assignment of an executory contract or lease
        (excluding the TWC Continuing Contracts and claims arising from the
        assumptions of indemnification obligations pursuant to Section 2.11(c)
        herein) must be timely filed and served as provided in Section 2.2(a) of
        the Plan. Any Claim for amounts owed pursuant to section 365(b)(l) of
        the Bankruptcy Code as a consequence of a Debtor's assumption or
        assignment of an executory contract or lease (excluding the TWC
        Continuing Contracts and claims arising from the assumptions of
        indemnification obligations pursuant to Section 2.11(c) herein) that is
        not filed and served within such time will be forever barred from
        assertion and shall not be enforceable against New WCG or its assets,
        nor against a Debtor, its Estate, its Assets or Old WCG. Unless
        otherwise ordered by the Bankruptcy Court, all such Claims for amounts
        owed pursuant to section 365(b)(1) of the Bankruptcy Code as a
        consequence of a Debtor's assumption or assignment of an executory
        contract or lease that are timely filed as provided herein shall be
        treated as Administrative Claims.

                                       19
<PAGE>
                   (e) Claims Arising from Rejection. A Claim arising from the
         rejection of an executory contract or unexpired lease must be filed
         with the Bankruptcy Court and served on the Debtors (i) in the case of
         an order approving such rejection entered prior to the Confirmation
         Date, in accordance with the such order but in no case more than thirty
         (30) days after the Confirmation Date, (ii) in the case of an executory
         contract or unexpired lease that is rejected hereunder, no later than
         thirty (30) days after the Confirmation Date, or (iii) in the case of
         an order approving such rejection entered after the Confirmation Date,
         in accordance with such order. Any Claim arising from the rejection of
         an executory contract or unexpired lease for which a proof of claim is
         not filed and served within such time will be forever barred from
         assertion and shall not be enforceable against a Debtor, its Estate or
         its Assets. Unless otherwise ordered by the Bankruptcy Court, all such
         Claims that are timely filed as provided herein shall be treated as
         Other Unsecured Claims under the Plan.

                                   ARTICLE III

                               THE TWC SETTLEMENT

SECTION 3.1 IMPLEMENTATION OF TWC SETTLEMENT AGREEMENT

         The Confirmation Order shall authorize the consummation and
implementation of all of the transactions contemplated by the TWC Settlement
Agreement and which comprise the global compromise and settlement embodied
therein (the "TWC Settlement"). In connection therewith, as provided in the TWC
Settlement Approval Order, on the Effective Date,

                   (a) Except for Causes of Action arising under the TWC
         Settlement Agreement, the TWC Continuing Contracts, the Plan, or the
         Plan Documents, each TWC Released Party shall forever waive, release,
         and discharge any and all Causes of Action against any and all of the
         WCG Entities and the WCG Indemnitees that are based in whole or in part
         on any act, omission, event, condition, or thing in existence or that
         occurred in whole or in part prior to the Effective Date of the Plan,
         and (solely, with respect to the WCG Indemnitees) arising out of or
         relating in any way to a WCG Indemnitee's relationship with, or
         transactions involving a WCG Entity;

                   (b) Except for Causes of Action arising under the Settlement
         Agreement, the TWC Continuing Contracts, the Plan, or the Plan
         Documents, the Committee, each WCG Entity, and each WCG Indemnitee
         shall forever waive, release, and discharge any and all Causes of
         Action against any and all TWC Released Parties that are based in whole
         or in part on any act, omission, event, condition, or thing in
         existence or that occurred in whole or in part prior to the Plan
         Effective Date and arising out of or relating in any way to a WCG
         Entity or its present or former assets, or a TWC Released Party's
         relationship with, or transactions involving a WCG Entity or its
         present or former assets.

SECTION 3.2 TWC CONTRIBUTED DISTRIBUTION.

         On the Effective Date, pursuant to the TWC Settlement Agreement and the
Plan, the TWC Contributed Distribution shall be forgone by TWC for the benefit
of all holders of Class 5/6 Channeled Actions, and the value thereof shall be
deemed to support the Channeling Injunction.

SECTION 3.3 CHANNELING INJUNCTION.

         Pursuant to the TWC Settlement Agreement, the Confirmation Order shall
contain an injunction (the "Channeling Injunction") (i) providing that (A) all
Class 5/6 Channeled Actions shall be shall be channeled to and fully and
completely satisfied as a result of the TWC Contributed Distribution and the
other consideration provided by the TWC Entities under the

                                       20
<PAGE>

TWC Settlement Agreement; and (B) all Securities Holder Channeled Actions shall
be channeled to and fully and completely satisfied from the Securities Holder
Channeling Fund; and (ii) enjoining (except as may be required for recovery from
officer/director insurance policies of the Company) the holders of Class 5/6
Channeled Actions and Securities Holder Channeled Actions from:

                  (a) commencing, conducting, or continuing in any manner,
         directly or indirectly, any suit, action or other proceeding of any
         kind against a TWC Settlement Releasee or its direct or indirect
         successor in interest (including, without limitation, all suits,
         actions, and proceedings that are pending as of the Effective Date,
         which must be withdrawn or dismissed with prejudice) except as may be
         necessary to access the Securities Holder Channeling Fund;

                  (b) enforcing, levying, attaching, collecting or otherwise
         recovering by any manner or means whether directly or indirectly any
         judgment, award, decree or order against a TWC Settlement Releasee or
         its assets or property, or its direct or indirect successor in
         interest, or any assets or property of such transferee or successor,

                  (c) creating, perfecting or otherwise enforcing in any manner,
         directly or indirectly, any lien against a TWC Settlement Releasee or
         its assets or property, or its indirect or indirect successors in
         interest, or any assets or property of such transferee or successor,

                  (d) asserting any set-off, right of subrogation or recoupment
         of any kind, directly or indirectly against any obligation due a TWC
         Settlement Releasee or its assets or property, or its direct or
         indirect successors in interest, or any assets or property of such
         transferee or successor, and

                  (e) proceeding in any manner that does not conform or comply
         with the provisions of the Plan (including the Securities Holder
         Channeling Fund Distribution Procedures), the TWC Settlement Approval
         Order, or the Settlement Agreement.

                                   ARTICLE IV

                            CONFIRMATION OF THE PLAN

SECTION 4.1 CONDITIONS PRECEDENT TO CONFIRMATION OF THE PLAN.

         It is a condition to confirmation of the Plan that the Clerk of the
Bankruptcy Court shall have entered:

                  (a) the TWC Settlement Approval Order which, among other
         things, shall:

                          (i) approve in all respects the TWC Settlement
                  Agreement and the compromises and transactions contemplated
                  thereby and contain findings and conclusions in support of the
                  components thereof that are reasonably satisfactory to the
                  Proponents, TWC, and the Administrative Agent, and

                           (ii) authorize and approve in all respects (A) the
                  Leucadia Investment Agreement and the transactions
                  contemplated thereby, (B) the Leucadia Claims Purchase
                  Agreement and the transactions contemplated thereby, (C) the
                  Building Purchase Agreement and the transactions contemplated
                  thereby, and (D) the Additional Settlement Transactions;

                  (b) the Confirmation Order which, among other things, shall:

                           (i) authorize the implementation and consummation of
                           all of the compromises and transactions contemplated
                           by the TWC Settlement Agreement, including, without
                           limitation, all of the releases and the Channeling
                           Injunction contemplated thereby;

                                       21
<PAGE>
                           (ii) authorize each Debtor to (A) assume and assign
                           all executory contracts and unexpired leases that
                           such Debtor may seek to assume and assign under the
                           Plan (including any TWC Continuing Contract), and (B)
                           reject all unexpired leases and executory contracts
                           that such Debtor may seek to reject under the Plan:
                           and (iii) contain findings and conclusions in support
                           of confirmation of the Plan that are reasonably
                           satisfactory to the Proponents, TWC, and the
                           Administrative Agent.

                           (iii) contain findings and conclusions in support of
                           confirmation of the Plan that are reasonably
                           satisfactory to the Proponents, TWC and the
                           Administrative Agent.

SECTION 4.2 CONDITIONS PRECEDENT TO THE OCCURRENCE OF THE EFFECTIVE DATE.

          It is a condition to the occurrence of the Effective Date that the
following shall have occurred on or before October 14, 2002:

                  (a) the Confirmation Order and the TWC Settlement Approval
         Order shall have been entered and become Final Orders;

                  (b) all necessary and material consents, authorizations, and
         approvals, including, without limitation, the SBC Authorization,
         consents and authorizations under the WCL Credit Documents, the
         Restated Credit Documents, and each Plan Document, shall have been
         given or waived for the transfers and transactions described in the
         Plan, including, without limitation, the transfers of property and the
         payments described in the Plan, as applicable;

                  (c) all conditions to the consummation of the transactions
         contemplated by the Leucadia Investment Agreement, the Leucadia Claims
         Purchase Agreement, the Building Purchase Agreement, and the Additional
         Settlement Transactions shall have been satisfied or waived;

                  (d) all components of the TWC Settlement Agreement shall have
         been consummated;

                  (e) the Restated Credit Documents shall have been executed and
         delivered by the parties thereto and all conditions therein shall have
         been satisfied or waived;

                  (f) WCL shall have paid the Extension Payment and the
         Subsequent Payment (as such terms are defined in the Restructuring
         Agreement) indefeasibly, in full in Cash; and

                  (g) all conditions of the Restructuring Agreement with respect
         to the Lenders shall have been satisfied or waived by the requisite
         number of Lenders.

SECTION 4.3 WAIVER OF CONDITIONS.

                  (a) The Debtors, with the consent of the Proponents and the
         Administrative Agent, may waive the conditions to confirmation of the
         Plan described in Section 4.1(b)(ii),provided, however, that the
         condition with respect to the assumption and assignment of the TWC
         Continuing Contracts may only be waived with the consent of TWC.

                  (b) The Debtors, with the consent of the Proponents and the
         Administrative Agent, may waive the conditions to the occurrence of the
         Effective Date described in Section 4.2(e), 4.2(f), and 4.2(g).

                  (c) Except as set forth herein, none of the conditions to
         confirmation of the Plan or the occurrence of the Effective Date may be
         waived without the consent of the Proponents, the Administrative Agent,
         and TWC.

                                       22
<PAGE>

SECTION 4.4 EFFECT OF CONFIRMATION OF THE PLAN

                  (a) Debtors' Authority. Until the Effective Date, the
         Bankruptcy Court shall retain custody and jurisdiction of the Debtors
         and their respective Assets and operations. On and after the Effective
         Date, the Debtors and their respective Assets and operations shall be
         released from the custody and jurisdiction of the Bankruptcy Court,
         except for those matters as to which the Bankruptcy Court specifically
         retains jurisdiction under the Plan or the Confirmation Order,provided,
         however, that the Cash and New WCG Common Stock to be distributed
         pursuant to the Plan will remain subject to the jurisdiction and
         custody of the Bankruptcy Court until they are. distributed or become
         unclaimed property as provided herein.

                  (b) Vesting of Assets. On the Effective Date, title to: (i)
         100% of WCG's Causes of Action against and equity interests in WCL
         shall vest.in New WCG, (ii) all Assets of CG Austria shall vest in CG
         Austria, and (iii) all Residual Assets, including any and all Causes of
         Action of the Debtors (whether arising under chapter 5 of the
         Bankruptcy Code or otherwise) that are in existence on the Effective
         Date and not explicitly released hereunder or pursuant to the Cash
         Collateral Order, shall be preserved and unaffected by the occurrence
         of the Effective Date and shall vest in Old WCG, in each case free and
         clear of all liens, Causes of Action, and interests against, in, or on
         such Assets except as may be provided in Section 2.4(b) herein or in
         the Restated Credit Documents.

                  (c) Dissolution of the Committee. On the Effective Date, the
         Committee shall be dissolved arid its members shall be released of all
         of their duties, responsibilities, and obligations in connection with
         the Chapter 11 Cases. On the Effective Date, the Residual Trustee shall
         be substituted for the Committee as party in interest with respect to
         any pending objections to Claims or other litigation filed by or
         against the Committee.

                  (d) Discharge of the Debtors. Except for the Residual Claims,
         or as may be otherwise provided herein, in the Confirmation Order, or
         in the Restated Credit Documents, the rights afforded in the Plan and
         the payments and distributions to be made hereunder shall discharge all
         Causes of Action against a Debtor or its Estate that arose before the
         Effective Date to the extent permitted by section 1141 of the
         Bankruptcy Code, including but not limited to all Causes of Action of
         the kind specified in section 502(g), 502(h), or 502(i) of the
         Bankruptcy Code, whether or not (i) a proof of claim based upon such
         debt is filed or deemed filed under section 501 of the Bankruptcy Code;
         (ii) a Claim based upon such debt is allowed under section 502 of the
         Bankruptcy Code; or (iii) the holder of a Claim based upon such debt
         has accepted the Plan. The Confirmation Order, except as provided
         herein or therein, shall be a judicial determination of discharge of
         all Causes of Action against a Debtor, such discharge shall void any
         judgment against a Debtor at any time obtained to the extent it relates
         to a discharged Cause of Action, and all Persons shall be precluded
         from asserting against a Debtor, or any of the Assets, any Cause of
         Action based upon any act or omission, transaction, or other activity
         of any kind or nature that occurred. prior to the Effective Date,
         whether or not such holder filed a proof of claim. As provided in
         section 524 of the Bankruptcy Code, entry of the Confirmation Order
         shall operate as an injunction against the prosecution of any action
         against a Debtor or its property to the extent it relates to a
         discharged Cause of Action.

                  (e) Injunction. On the Effective Date, except as otherwise
         provided herein or in the Confirmation Order, all Persons who have
         been, are, or may be holders of Claims against or Equity Interests in a
         Debtor shall be enjoined from taking any of the following actions
         against or affecting a Debtor, its Estate, or the Assets and property
         with respect to such Claims or Equity Interests (other than actions
         brought to enforce any rights or obligations under the Plan and
         appeals, if any, from the Confirmation Order):

                                    (i) commencing, conducting, or continuing in
                  any manner, directly or indirectly, any suit, action, or other
                  proceeding of any kind against a Debtor, its Estate, or the
                  Assets, or any direct or indirect successor in interest to a
                  Debtor (including New WCG), or any assets or property of such
                  transferee or successor (including, without limitation, all
                  suits, actions, and proceedings that are pending as of the
                  Effective Date, which must be withdrawn or dismissed with
                  prejudice);

                                    (ii) enforcing, levying, attaching,
                  collecting, or otherwise recovering by any manner or means
                  whether directly or indirectly any judgment, award, decree or
                  order against a Debtor, its Estate, or the Assets, or any
                  direct or indirect successor in interest to a Debtor
                  (including

                                       23
<PAGE>

                  New WCG), or any assets or property of such transferee or
                  successor,

                                    (iii) creating, perfecting, or otherwise
                  enforcing in any manner, directly or indirectly, any lien
                  against a Debtor, its Estate, or the Assets, or any direct or
                  indirect successor in interest to any of a Debtor (including
                  New WCG), or any assets or property of such transferee or
                  successor other than as contemplated by the Plan;

                                    (iv) except as provided herein, asserting
                  any setoff, right of subrogation, or recoupment of any kind,
                  directly or indirectly against any obligation due a Debtor,
                  its Estate, or its Assets, or any direct or indirect successor
                  in interest to a Debtor (including New WCG), or any assets or
                  property of such transferee or successor~ and

                                    (v)proceeding in any manner in any place
                  whatsoever that does not conform to or comply with the
                  provisions of the Plan or the settlements set forth herein to
                  the extent such settlements have been approved by the
                  Bankruptcy Court in connection with confirmation of the Plan;

         provided, however, that nothing in this Section shall affect the rights
         of the Administrative Agent or Lenders under the New WCG Guarantee, the
         Restated Guarantee, the WCL Credit Documents, or the Restated Credit
         -Documents, or the rights of the TWC entities under the TWC Continuing
         Contracts or any of the other agreements entered into in connection
         with the TWC Settlement Agreement.

                  (f) Retention of CG Austria Equity Interests. Upon the
         occurrence of the Effective Date, all Equity Interests of CG Austria
         shall be retained by and shall vest in WCL (subject to the Restated
         Credit Documents) as if the Chapter 11 Cases had not been commenced.

                  (g) Cancellation of Instruments and Agreements. Upon the
         occurrence of the Effective Date, except as may be assigned to the
         Residual Trust or as otherwise provided herein, in the WCL Credit
         Documents, or in the Confirmation Order, all agreements, instruments,
         indentures, notes, warrants, options, share certificates, or other
         documents (other than the Restated Credit Documents, the WCL Credit
         Documents, and any insurance policy of a Debtor) evidencing, giving
         rise to, or governing any Claim or Equity Interest shall be deemed
         canceled and annulled without further act or action under any
         applicable agreement, law, regulation, order, or rule, and the
         obligations of a Debtor under such agreements, instruments, indentures,
         notes, warrants, options, share certificates, or other documents shall
         be discharged; provided however, that the Senior Reset Note Indenture
         and the Senior Redeemable Notes Indenture shall continue in effect
         solely for the purposes of (a) allowing the holders of the Senior Reset
         Note Claims and Senior Redeemable Notes Claims to receive their
         distributions hereunder, (b) allowing the Indenture Trustees to make
         the distributions to be made on account of the Senior Reset Notes and
         Senior Redeemable Notes, and (c) permitting the Indenture Trustees to
         recover the Indenture Trustee Fees in accordance with Section 2.2(e) of
         this Plan and, if necessary for any reason, in the sole determination
         of the Indenture Trustees, to assert their Indenture Trustee Charging
         Lien against such distributions for payment of the Indenture Trustee
         Fees.

                  (h) Disallowance of Affiliate Senior Redeemable Notes. Upon
         the occurrence of the Effective Date, any Senior Redeemable Note that
         was held by an Affiliate on the Petition Date shall be disallowed in
         its entirety and the holder of such Note shall not receive any
         distribution on account of such Senior Redeemable Note.

                  (i) Treatment of Affiliate Claims. Except for Senior
         Redeemable Notes Claims and as otherwise expressly provided herein or
         in the Restated Credit Documents, all rights, claims, Causes of Action,
         obligations, and liabilities between and among each Debtor and its
         Affiliates shall be reinstated and/or unimpaired on the Effective Date
         as if the Chapter II Cases had not been filed.

                  (j) Exculpation.

                                       24
<PAGE>

                           (i) From and after the Effective Date, neither the
                  Debtors, their Affiliates, the Administrative Agent, the
                  Lenders, the Committee, Leucadia, the TWC Entities, nor any of
                  their respective directors, officers, employees, members,
                  attorneys, consultants, advisors, and agents (acting in such
                  capacity), shall have or incur any liability to any Person for
                  any act taken or omitted to be taken in connection with the
                  Debtors' restructuring, including the formulation,
                  preparation, dissemination, implementation, confirmation or
                  approval of the Restructuring Agreement, the TWC Plan Support
                  Agreement, the TWC Settlement Agreement, the Plan, the Plan
                  Documents, the Disclosure Statement, or any contract,
                  instrument, release or other agreement or document provided
                  for or contemplated in connection with the consummation of the
                  transactions set forth in the Plan; provided, however, that
                  the foregoing provisions shall not affect the liability of any
                  Person that otherwise would result from any such act or
                  omission to the extent that act or omission is determined in a
                  Final Order to have constituted gross negligence or willful
                  misconduct. Any of the foregoing parties in all respects shall
                  be entitled to rely upon the advice of counsel with respect to
                  their duties and responsibilities under the Plan.

                           (ii) From and after the Effective Date, the Indenture
                  Trustees and their agents, attorneys, and advisors shall be
                  exculpated by all Persons and entities, including, without
                  limitation, all holders of Senior Reset Note Claims and Senior
                  Redeemable Notes Claims and other parties in interest, from
                  any and all claims, causes of action, and other assertions of
                  liability arising out of the discharge of the powers and
                  duties conferred upon such Indenture Trustees by the Senior
                  Reset Note Indenture, the Senior Redeemable Notes Indenture or
                  the Plan or any order of the Bankruptcy Court entered pursuant
                  to or in furtherance of the Plan, or applicable law, except
                  for actions or omissions to act arising out of the gross
                  negligence or willful misconduct of the Indenture Trustees. No
                  holder of a Senior Reset Note Claim and Senior Redeemable
                  Notes Claim or other party in interest shall have or pursue
                  any claim or cause of action against the Indenture Trustees
                  and their agents, attorneys and advisors for making
                  distributions in accordance with this Plan or for implementing
                  the provisions of this Plan.

                  (k) Release By Holders. As of the Effective Date, each holder
         of a Senior Reset Note Claim and Senior Redeemable Notes Claim to the
         fullest extent permissible under applicable law, as such law may be
         extended or interpreted subsequent to the Effective Date, shall be
         deemed to forever release, waive, and discharge all claims,
         obligations, suits, judgments, damages, demands, debts, rights, causes
         of action, and liabilities, whether liquidated or unliquidated, fixed
         or contingent, matured or unmatured, known or unknown, foreseen or
         unforeseen or then existing or thereafter arising in law, equity or
         otherwise, that are based in whole or in part on any act, omission,
         transaction, or other occurrence taking place on or prior to the
         Effective Date in any way relating to the Indenture Trustees or their
         agents, attorneys, and advisors that such entity has, had or may have,
         against the Indenture Trustees or their agents, attorneys, and
         advisors, or all Persons or entities claiming through them, and any of
         their respective present or former directors, officers, employees,
         agents, representatives, attorneys, accountants, underwriters,
         investment bankers or financial advisors and any of their respective
         successors or assigns. This release, waiver and discharge will be in
         addition to the discharge of claims and termination of interests
         provided herein and under the Confirmation Order and the Bankruptcy
         Code.

                  (1) Release By Debtors. As of and on the Effective Date, the
         Debtors, their Estates, all Persons claiming through them, all Persons
         or entities who have held, hold or may hold Claims against or allowed
         interests in the Debtors, and any of their successors, assigns or
         representatives, shall be deemed to have waived, released and
         discharged all rights or claims, whether based upon tort, fraud,
         contract, or otherwise, and whether arising out of the Debtors'
         restructuring, including the formulation, preparation, dissemination,
         implementation, confirmation or approval of the Restructuring
         Agreement, the Plan Support Agreement, the Leucadia Investment
         Agreement, the Leucadia Claims Agreement, the Building Purchase
         Agreement, the TWC Settlement, the Plan, the Disclosure Statement or
         any contract, instrument, release or other agreement or document
         provided for or contemplated in connection with the consummation of the
         transactions set forth in the Plan, which they possessed or may possess
         prior to the Effective Date against the Indenture Trustees, and

                                       25
<PAGE>
         its present or former directors, officers, employees, agents,
         representatives, attorneys, accountants, underwriters, investment
         bankers, or financial advisors, and any of their respective successors
         or assigns. This release, waiver, and discharge will be in addition to
         the discharge of Claims and termination of interests provided herein
         and under the Confirmation Order and the Bankruptcy Code.

         (m) Lender Releases. As of the Effective Date, the Debtors and their
Estates, every holder of a Claim or Equity Interest, and the TWC Entities,
forever release, waive and discharge the Released Lender Parties (and the
Released Lender Parties forever release, waive and discharge the Proponents and
the TWC Settlement Releasees) from all claims, obligations, suits, judgments,
damages, demands, debts, rights, causes of action, liabilities, rights of
contribution, and rights of indemnification, whether liquidated or unliquidated,
fixed or contingent, matured or unmatured, known or unknown, foreseen or
unforeseen, then existing or thereafter arising, in law, equity, or otherwise,
that are based in whole or in part on any act, omission, transaction, or other
occurrence taking place on, or prior to, the Effective Date in any way relating
to the Debtors and their business affairs (including, without limitation, any
extensions of credit or other financial services or accommodations made or not
made to the Debtors prior to the Effective Date), the Chapter 11 Cases, the
Plan, the WCL Credit Agreement, the WCL Credit Documents, and the Restructuring
Agreement. The Confirmation Order shall specifically provide for the foregoing
releases and shall enjoin the prosecution of any such released claim, causes of
action, or liability.

          (n) Limited Release of Directors. Officers, and Employees. As of the
Effective Date, each of the Debtors shall be deemed to have waived and released
its present and former directors, officers, employees, members, attorneys,
consultants, advisors, and agents (acting in such capacity) who were directors,
officers, employees, members, attorneys, consultants, advisors or agents,
respectively, at any time during the Chapter 11 Cases from any and all Causes of
Action of the Debtors, including without limitation, Causes of Action which a
Debtor as a debtor in possession otherwise has legal power to assert,
compromise, or settle in connection with the Chapter 11 Cases, arising on or
prior to the Effective Date; provided, however, that the foregoing provisions
shall not operate as a waiver or release of (i) amounts due under any loan,
advance or similar payment by a Debtor to any such person, (ii) contractual
obligations owed by such person to a Debtor, (iii) Causes of Action relating to
such person's actions or omissions determined in a Final Order to have
constituted gross negligence or willful misconduct.

         (o) Receipt of New Equity. The New Equity being issued under the Plan
shall be distributed to and received by holders of Allowed Claims in Classes 4,
5, and 6 free and clear of any liens, encumbrances, or Causes of Action relating
in any way to WCG or Old WCG.

                                       26
<PAGE>
                                    ARTICLE V

                      MEANS FOR IMPLEMENTATION OF THE PLAN

SECTION 5.1 CORPORATE EXISTENCE.

         On the Effective Date: (a) New WCG shall be incorporated and shall
exist thereafter as a separate corporate entity, with all corporate powers in
accordance with the laws of the State of Nevada, the New Charter, and the New
Bylaws, (b) the Residual Trust shall be settled and exist as a grantor trust
under the laws of the State of Delaware and pursuant to the Declaration of
Trust, (c) CG Austria shall continue to exist as a separate corporate entity,
with all corporate powers in accordance with the laws of the State of Delaware
and pursuant to its existing certificate of incorporation and bylaws, and (d)
Old WCG shall continue to exist as a separate corporate entity, with corporate
powers, in accordance with the laws of the State of Delaware and pursuant to its
certificate of incorporation and bylaws, each of which shall be amended and
restated to limit Old WCG's activity to the liquidation of its Residual Assets
and the winding-up of its affairs.

SECTION 5.2 GOVERNANCE.

                  (a) Selection of Directors and Officers of New WCG

                           (i) Immediately following the Effective Date, the
                  initial board of directors of New WCG shall be composed of
                  nine individuals, consisting of the Chief Executive Officer of
                  WCG, at least one director of WCG to be selected by WCG's
                  board of directors (the 'WCG Independent Director"), two
                  individuals to be selected by Leucadia, and five individuals
                  to be selected by the Committee after consultation with the
                  Leucadia (the "Committee Independent Directors").

                           (ii) In selecting the five Committee Independent
                  Directors, at least 30 days prior to the Effective Date, the
                  Committee shall provide to Leucadia a list of at least five
                  and no more than 10 individuals who are qualified to serve as
                  the Committee Independent Directors. Such individuals shall
                  not be partners, members, officers, directors, controlling
                  shareholders or employees of any holder of Allowed Claims in
                  Class 5. Within 10 days of receipt of such list, Leucadia
                  shall advise WCG and the Committee in writing which
                  individuals on such list shall serve as the five Committee
                  Independent Directors. If, however, the list provided by the
                  Committee to Leucadia contains less than 10 individuals and if
                  Leucadia provides written notice to the Committee within 10
                  days of receipt of the list that it does not find at least 5
                  individuals on the list acceptable to serve as Committee
                  Independent Directors, then the Committee shall notify
                  Leucadia in writing of the name of at least one additional
                  individual to serve as a Committee Independent Director, which
                  Leucadia shall be permitted to accept or reject in writing. If
                  Leucadia determines such additional individual is not
                  acceptable, and provides written notice of same to the
                  Committee within 10 days of receipt of the notice of the
                  proposal of such additional individual, then the Committee
                  shall again notify Leucadia in writing of the name of at least
                  one additional individual to serve as a Committee Independent
                  Director, which Leucadia can decide to accept or reject within
                  10 days of receipt of the notice of the proposal of such
                  additional individual. Notwithstanding the foregoing, at no
                  time shall the Committee be required to provide to Leucadia a
                  list of more than 10 proposed Committee Independent Directors,
                  and at no time shall Leucadia be permitted to reject more than
                  five proposed Committee Independent Directors.

                           (iii) The WCG Independent Director and the Committee
                  Independent Directors must (A) be independent of New WCG
                  within the meaning of the rules of the New York Stock Exchange
                  or, if New WCG is listed or traded on another stock exchange,
                  the stock exchange on which New WCG's securities are listed or
                  traded, and the applicable rules of the SEC; (B) be
                  independent of Leucadia; and (C) not be an officer or employee
                  of New WCG or any of its affiliates.

                                       27
<PAGE>

                           (iv) An individual is not independent of Leucadia if
                  he or she (A) is not "independent" of Leucadia within the
                  meaning of the rules of the New York Stock Exchange or the
                  SEC; (B) is an affiliate or an officer, director, or employee
                  of Leucadia; (C) is a beneficial owner of more than 10% of the
                  voting power of Leucadia; (D) has any relationship with
                  Leucadia that would typically be required to be disclosed in a
                  Leucadia proxy statement; or (E) is designated by Leucadia for
                  election to the Board of Directors of New WCG in accordance
                  with the Stockholders Agreement.

                           (v) After the initial Board is selected, the terms
                  and manner of selection of directors of New WCG shall be as
                  provided in the New Bylaws and the New Charter and in
                  accordance with the terms of the Stockholders Agreement

                  (b) Upon the occurrence of the Effective Date and subject to
         the provisions of the Plan, the management, control, and operation of:
         (i) New WCG shall become the general responsibility of its board of
         directors, as constituted herein and pursuant to the New Charter and
         the New Bylaws, (ii) CG Austria shall become the general responsibility
         of its board of directors as such is constituted pursuant to CG
         Austria's existing certificate of incorporation and bylaws and (iii)
         Old WCG shall become the general responsibility of its board of
         directors as such is constituted by the Residual Trustee on behalf of
         the Residual Trust as the sole shareholder of Old WCG and pursuant to
         Old WCG's amended and restated certificate of incorporation and bylaws.

SECTION 5.3 THE NEW CHARTER; NEW BYLAWS, AMENDED OLD WCG CHARTER AND THE AMENDED
            OLD WCG BYLAWS.

         Upon the occurrence of the Effective Date, the New Charter and the New
Bylaws shall become effective and Old WCG's certificate of incorporation and
bylaws shall be amended and restated in substantially the form filed as a Plan
Document.

SECTION 5.4 EFFECTUATING DOCUMENTS,

         On or before ten (10) Business Days prior to the deadline for parties
to vote to accept or reject the Plan, the Debtors shall file with the Bankruptcy
Court substantially final forms of the agreements, instruments, and other
documents that have been identified herein as Plan Documents, which agreements,
instruments, and documents shall implement and be governed by the Plan. Entry of
the Confirmation Order shall authorize the officers of the Debtors and New WCG
to execute, enter into, and deliver all documents, instruments, and agreements,
including, but not limited to, the Plan Documents, and to take all actions
necessary or appropriate to implement the Plan. To the extent the terms of any
of the Plan Documents conflict with the terms of the Plan, the Plan shall
control.

SECTION 5.5 TRANSACTIONS ON THE EFFECTIVE DATE.

         On the Effective Date, unless otherwise provided by the Confirmation
Order, the following shall occur, shall be deemed to have occurred
simultaneously, and shall constitute substantial consummation of the Plan:

                  (a) the New Charter and New Bylaws shall be authorized,
         approved and effective in all respects without further action under
         applicable law, regulation, order, or rule, including, without express
         or implied limitation, any action by the stockholders or directors of
         Old WCG or New WCG. On the Effective Date or as soon thereafter as is
         practicable, the New Charter shall be filed with the Secretary of State
         of the State of Nevada;

                  (b) the Residual Trust shall be established, and the Residual
         Assets shall automatically vest in Old WCG without further action on
         the part of Old WCG, or the Residual Trustee;

                  (c) the Residual Trustee shall be identified by the
         Administrative Agent and shall be duly appointed and qualified to
         serve;

                                       28
<PAGE>
                  (d) the property to be retained by and/or transferred to a
         Debtor or New WCG shall automatically vest in such Debtor or New WCG
         without further action on the part of such Debtor or any other Person;

                  (e) Old WCG shall issue the Residual Share to the Residual
         Trust;

                  (f) all of the Restated Credit Documents shall be executed,
         delivered, and shall become effective;

                  (g) all payments, deliveries, and other distributions to be
         made pursuant to the Plan or the Restated Credit Documents on or as
         soon as practicable after the Effective Date shall be made or duly
         provided for,

                  (h) each of the transactions that comprise the TWC Settlement
         shall occur or be implemented and shall become binding and effective in
         all respects, including, without limitation; (i) Leucadia shall make
         the New Investment pursuant to the Leucadia Investment Agreement; (ii)
         Leucadia shall purchase the TWC Assigned Claims pursuant to the
         Leucadia Claims Purchase Agreement; (iii) Leucadia shall receive the
         Leucadia Claims Distribution and the Leucadia Investment Distribution;
         (iv) TWC shall contribute the TWC Contributed Distribution for the
         benefit of holders of Class 5/6 Channeled Actions; (v) WHBC shall sell
         the Building Purchase Assets to WTC pursuant to the Building Purchase
         Agreement; (vi) all of the Additional Settlement Transactions shall be
         consummated; and (vii) all of the releases contemplated by the TWC
         Settlement shall become binding and effective.

                                   ARTICLE VI

                     PROVISIONS GOVERNING DISTRIBUTIONS AND

                  FOR RESOLVING AND TREATING CONTESTED CLAIMS

SECTION 6.1 POWERS AND DUTIES OF THE DISBURSING AGENT.

         Pursuant to the terms and provisions of the Plan, the Disbursing Agent
shall be empowered and directed to (a) take all steps and execute all
instruments and documents necessary to make distributions on account of Allowed
Claims; (b) make distributions contemplated by the Plan; (c) comply with the
Plan and the obligations thereunder; (d) employ, retain, or replace
professionals to represent it with respect to its responsibilities; (e) object
to Claims as specified herein, and prosecute such objections; (f) make annual
and other periodic reports regarding the status of distributions under the Plan
to the holders of Allowed Claims (such reports to be made available upon request
to the holders of any Contested Claim); and (g) exercise such other powers as
may be vested in the Disbursing Agent pursuant to an order of the Bankruptcy
Court or the Plan.

SECTION 6.2 DISBURSING AGENT/RESIDUAL TRUSTEE.

         The Disbursing Agent shall make or direct all distributions required
under this Plan, except for distributions that are explicitly to be made by the
Residual Trustee.

SECTION 6.3 MEANS OF CASH PAYMENT.

         Subject to the provisions of the Plan, the WCL Credit Documents, and
the Restated Credit Documents, Cash payments made pursuant to the Plan shall be
by check drawn on a domestic bank, or by wire transfer from a domestic bank,
except that payments made to foreign creditors holding Allowed Claims or to
foreign governmental units holding Allowed Priority Tax Claims shall be in such
funds and by such means as are customary or as may be necessary in a particular
foreign jurisdiction.

SECTION 6.4 DELIVERY OF DISTRIBUTIONS.

         Subject to Bankruptcy Rule 9010, distributions and deliveries to
holders of Allowed Claims shall be made at

                                       29
<PAGE>
the address of each such holder (a) as set forth on the proof of Claim filed by
such holder, or (b) at the last known address of such holder if the Disbursing
Agent or the Residual Trustee (as applicable) have been notified of a change of
address, except as otherwise provided herein. If any holder's distribution is
returned as undeliverable, no further distributions to such holder shall be made
unless and until the Disbursing Agent or the Residual Trustee (as applicable)
receives notification of such holder's then-current address, at which time any
missed distributions shall be made to such holder without interest. Amounts in
respect of undeliverable distributions shall be returned to the Disbursing Agent
or the Residual Trustee (as applicable) until such distributions are claimed.
All claims for undeliverable distributions shall be made on or before the first
anniversary of the Distribution Date. After such date, all unclaimed property
shall revert to NewWCG.

SECTION 6.5 SURRENDER OF NOTES. INSTRUMENTS, AND SECURITIES.

         Subject to the provisions of the Plan, the Confirmation Order, or the
Restated Credit Documents, as a condition to receiving distributions provided
for by the Plan, each holder of a promissory note or other instrument evidencing
a Claim (other than the holder of a Senior Redeemable Notes Claim) shall
surrender such promissory note or instrument to the Disbursing Agent (or, if
applicable, the Residual Trustee) within sixty (60) days of the Effective Date.
AJI promissory notes and other instruments surrendered pursuant to the preceding
sentence shall be marked "Compromised and Settled Only as Provided in the Plan."
Except as set forth above or unless waived by the Disbursing Agent or the
Residual Trustee (as applicable), any Person seeking the benefits of being a
holder of an Allowed Claim evidenced by a promissory note or other instrument
(other than the holder of a Senior Redeemable Notes Claim), that fails to
surrender such promissory note or other instrument must (a) establish the
unavailability of such promissory note or other instrument to the reasonable
satisfaction of the Disbursing Agent or the Residual Trustee (as applicable),
and (b) provide an indemnity bond in form and amount acceptable to the
Disbursing Agent (or, if applicable, the Residual Trustee) holding harmless the
Debtors and the Disbursing Agent (or, if applicable, the Residual Trustee) from
any damages, liabilities, or costs incurred a result of treating such Person as
a holder of an Allowed Claim. Thereafter, such Person shall be treated as the
holder of an Allowed Claim for all purposes under the Plan. Notwithstanding the
foregoing, any holder of a promissory note, share certificate, or other
instrument evidencing a Claim (other than a holder of a Senior Redeemable Notes
Claim) that fails within one year of the Effective Date to surrender to the
Debtors (or, if applicable, the Residual Trustee) such note or other instrument
or, alternatively, fails to satisfy the requirements of the second sentence of
this paragraph shall be deemed to have forfeited all rights and Claims against
the Debtors and shall not be entitled to receive any distribution under the
Plan.

SECTION 6.6 EXPENSES INCURRED ON OR AFTER THE EFFECTIVE DATE AND CLAIMS OF THE
            DISBURSING AGENT AND THE RESIDUAL TRUSTEE.

         Subject to approval by the requisite number of Lenders for the use of
any of the Lenders' cash collateral, the amount of any expenses incurred by the
Disbursing Agent or the Residual Trustee on or after the Effective Date
(including, but not limited to, taxes) and any compensation and expenses
(including any post-confirmation fees, costs, expenses, or taxes) to be paid to
or by the Disbursing Agent or the Residual Trustee shall be borne by New WCG and
the Residual Trust, respectively. Reasonable professional fees and expenses
incurred by the Disbursing Agent or the Residual Trustee after the Effective
Date in connection with the effectuation of the Plan shall be paid by each in
the ordinary course of business.

SECTION 6.7 TIME BAR TO CASH PAYMENTS.

         Checks issued by the Disbursing Agent or the Residual Trustee in
respect of Allowed Claims shall be null and void if not negotiated within one
hundred eighty (180) days after the date of issuance thereof. Requests for
reissuance of any check shall be made directly to the Disbursing Agent or, if
applicable, the Residual Trustee, by the holder of the Allowed Claim to whom
such check originally was issued. Any claim with respect to such a voided check
shall be made on or before the later of (a) the first anniversary of the
Distribution Date or (b) one hundred eighty (180) days after the date of
issuance of such check. After such date, all claims in respect of void checks
shall be discharged and forever barred.

                                       30
<PAGE>

SECTION 6.8 EXCULPATION OF THE DISBURSING AGENT.

         Subject to the provisions of this Section, each of the Disbursing Agent
and the Residual Trustee, in its capacity as such, together with its officers,
directors, employees, agents, and representatives (acting in that capacity), are
hereby exculpated by all Persons, holders of Claims and Equity Interests, and
parties in interest, from any and all causes of action, and other assertions of
liability (including breach of fiduciary duty) arising out of the discharge of
the powers and duties conferred upon the Disbursing Agent or the Residual
Trustee, as the case may be, by the Plan, any Final Order of the Bankruptcy
Court entered pursuant to or in the furtherance of the Plan, or applicable law,
except solely for actions or omissions arising out of the Disbursing Agent's or
Residual Trustee's gross negligence or willful misconduct. No holder of a Claim
or an Equity Interest, or representative thereof, shall have or pursue any claim
or Cause of Action (a) against either the Disbursing Agent or the Residual
Trustee, in its capacity as such, or its officers, directors, employees, agents,
and representatives (acting in that capacity) for making payments in accordance
with the Plan, or for liquidating assets to make payments under the Plan, or (b)
against any holder of a Claim or an Equity Interest for receiving or retaining
payments or transfers of assets as provided for by the Plan. Nothing contained
in this Section shall preclude or impair any holder of an Allowed Claim from
bringing an action in the Bankruptcy Court to compel the making of distributions
contemplated by the Plan on account of such Claim against a Debtor or New WCG.

SECTION 6.9. NO DISTRIBUTIONS PENDING ALLOWANCE.

         Notwithstanding any other provision of the Plan, no payment or
distribution shall be made with respect to any Claim to the extent it is a
Contested Claim unless and until it becomes an Allowed Claim. Any distributions
and deliveries to be made under the Plan on account of an Allowed Claim shall be
made on the Distribution Date with respect to such Allowed Claim, as otherwise
provided for herein, or as may be ordered by the Bankruptcy Court and shall be
made in accordance with the provision of the Plan governing the class of Claims
to which such Allowed Claim belongs.

SECTION 6.10 OBJECTION DEADLINE.

         As soon as practicable, but in no event later than sixty (60) days
after the Effective Date (subject to being extended by the Bankruptcy Court upon
motion of a Debtor with notice and a hearing), objections to Claims shall be
filed with the Bankruptcy Court and served upon the holder of each of the Claims
to which objections are made; provided, however, that no objection may be filed
with respect to any Claim that is Allowed on or before the Effective Date.

SECTION 6.11 PROSECUTION OF OBJECTIONS.

         Upon occurrence of the Effective Date, only the Disbursing Agent and
the Residual Trustee shall have authority to file, litigate, settle, or withdraw
objections to Claims.

SECTION 6.12 ESTIMATION OF CLAIMS.

         The Disbursing Agent or the Residual Trustee may, at any time and from
time to time, request that the Bankruptcy Court estimate any Contested Claim
pursuant to section 502(c) of the Bankruptcy Code regardless of whether the
Disbursing Agent, the Residual Trustee, or the Committee (as applicable)
previously objected to such Claim, or whether the Bankruptcy Court has ruled on
any such objection, and the Bankruptcy Court will retain jurisdiction to
estimate any Claim at any time during litigation concerning any objection to any
Claim, including during the pendency of any appeal relating to any such
objection. In the event that the Bankruptcy Court estimates any Contested Claim,
that estimated amount will constitute either the Allowed amount of such Claim or
a maximum limitation on such Claim, as determined by the Bankruptcy Court. If
the estimated amount constitutes a maximum limitation on such Claim, the
Disbursing Agent, the Residual Trustee, or the Committee may elect to pursue any
supplemental proceedings to object to any ultimate payment on such Claim. All of
the objection, estimation, settlement, and resolution procedures set forth in
the Plan are cumulative and not necessarily exclusive of one another.

                                       31
<PAGE>

Claims may be estimated and subsequently compromised, settled, withdrawn, or
resolved by any mechanism approved by the Bankruptcy Court.

SECTION 6.13 INDENTURE TRUSTEES AS CLAIM HOLDER.

         Consistent with Bankruptcy Rule 3003(c), the Debtors shall recognize
proofs of claim filed by the Indenture Trustees with respect to the Senior Reset
Note Claims and Senior Redeemable Notes Claims. Accordingly, any Claim, proof of
which is filed by the registered or beneficial holder of a Claim, may be
disallowed as duplicative of the Claim of the Indenture Trustees, without need
for any further action or Bankruptcy Court order.

                                   ARTICLE VII

                            RETENTION OF JURISDICTION

SECTION 7.1 SCOPE OF JURISDICTION.

         Notwithstanding the entry of the Confirmation Order and the occurrence
of the Effective Date, the Bankruptcy Court shall retain such jurisdiction over
the Chapter 11 Cases after the Effective Date so long as is legally permissible,
including, but not limited to, jurisdiction to:

                  (a) Allow, disallow, determine, liquidate, classify, estimate,
         or establish the priority or secured or unsecured status of any Claim,
         including the resolution of any request for payment of any
         Administrative Claim and the resolution of any and all objections to
         the allowance or priority of Claims;

                  (b) Grant or deny any applications for allowance and payment
         of any Fee Claim for periods ending on or before the Effective Date;

                  (c) Resolve any matters related to the assumption, assumption
         and assignment, or rejection of any executory contract or unexpired
         lease to which a Debtor is a party or with respect to which a Debtor
         may be liable and to hear, determine and, if necessary, liquidate, any
         Claims arising therefrom;

                  (d) Ensure that distributions to holders of Allowed Claims are
         accomplished pursuant to the provisions of the Plan, including ruling
         on any motion or other pleading filed pursuant to the Plan;

                  (e) Decide or resolve any motions, adversary proceedings,
         contested or litigated matters, and any other matters, and grant or
         deny any applications involving a Debtor, the Disbursing Agent, or the
         Residual Trust that may be pending on or commenced after the Effective
         Date;

                  (f) Enter such orders as may be necessary or appropriate to
         implement or consummate the provisions of the Plan and all contracts,
         instruments, releases, indentures, and other agreements or documents
         created in connection with the Plan or the Disclosure Statement, or to
         correct any defect, cure any omission, or reconcile any inconsistency
         therein;

                  (g) Resolve any cases, controversies, suits, or disputes that
         may arise in connection with the consummation, interpretation, or
         enforcement of the Plan, the TWC Settlement, the Declaration of Trust,
         the liquidation of the Residual Assets, the distribution of Available
         Proceeds, if any, and the winding-up of Old WCG or any Person's
         obligations incurred in connection therewith, or any other agreements
         governing, instruments evidencing, or documents relating to any of the
         foregoing, including the interpretation or enforcement of any rights,
         remedies, or obligations under any of the foregoing;

                  (h) Issue injunctions, enter and implement other orders, or
         take such other actions as may be necessary or appropriate to restrain
         interference by any entity with consummation or enforcement of the
         Plan, including, without limitation, to enforce the TWC Settlement and
         the Channeling Injunction, except as otherwise provided herein;

                                       32
<PAGE>

                  (i) Enter and implement such orders as are necessary or
         appropriate if the Confirmation Order is for any reason modified,
         stayed, reversed, revoked, or vacated;

                  (j) Determine any other matters that may arise in connection
         with or relate to the Plan, the Disclosure Statement, the Confirmation
         Order, the TWC Settlement, the Channeling Injunction, the liquidation
         of the Residual Assets, the distribution of Available Proceeds, if any,
         and the winding-up of Old WCG, or any contract, instrument, release,
         indenture, or other agreement or document created in connection with
         the Plan, the Disclosure Statement, or the TWC Settlement including
         without limitation the Declaration of Trust

                  (k) Enter a Final Decree as contemplated by Bankruptcy Rule
         3022; and

                  (1) Effectuate payment of the Indenture Trustee Fees as
         contemplated by Section 2.2(e) of this Plan.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

SECTION 8.1 PAYMENT OF STATUTORY FEES.

         All fees payable pursuant to section 1930 of title 28 of the United
States Code that come due prior to the Effective Date, as determined by the
Bankruptcy Court at the Confirmation Hearing, shall be paid by the Debtors on or
before the Effective Date. After the Effective Date, and until the Chapter 11
Cases are closed, converted, or dismissed, the Disbursing Agent shall pay fees
pursuant to section 1930 of title 28 of the United States Code as they become
due.

SECTION 8.2 NO INTEREST OR ATTORNEYS' FEES.

         Subject to the provisions of the Plan, the Cash Collateral Order, the
WCL Credit Documents, the Restated Credit Documents, or as allowed by the
Bankruptcy Court, no interest, penalty, or late charge arising after the
Petition Date, and no award or reimbursement of attorneys fees or related
expenses or disbursements, shall be allowed on, or in connection with, any
Claim.

SECTION 8.3 MODIFICATIONS TO THE PLAN.

         (a) The Debtors reserve the right, with the consent of each of the
other Proponents, TWC, and the Administrative Agent (which consent may not be
unreasonably withheld), to amend or modify the Plan at any time prior to the
entry of the Confirmation Order in accordance with the Bankruptcy Code and
Bankruptcy Rules.

         (b) After the entry of the Confirmation Order, the Debtors may, with
the consent of each of the other Proponents, TWC, and the Administrative Agent
(which consent shall not be unreasonably withheld) amend or reconcile any
inconsistency in the Plan in such manner as may be necessary to carry out the
purpose and intent of the Plan, in accordance with the provisions of the
Bankruptcy Code and Bankruptcy Rules.

         (c) A holder of a Claim that has accepted the Plan shall be deemed to
have accepted the Plan as modified if the proposed modification does not
materially and adversely change the treatment of the Claim of such holder.

                                       33
<PAGE>

SECTION 8.4 REVOCATION OF PLAN.

         The Debtors reserve the right in the good faith exercise of their
fiduciary duties to revoke and withdraw the Plan prior to the occurrence of the
Effective Date in accordance with Section 1127 of the Bankruptcy Code. If the
Debtors revoke or withdraw the Plan., or if the Effective Date does not occur,
then the Plan and all settlements set forth in the Plan (including the TWC
Settlement) shall be deemed null and void and nothing contained herein shall be
deemed to constitute a waiver or release of any claims by or against a Debtor or
any other Person or to prejudice in any manner the sights of a Debtor or any
Person in any proceedings involving a Debtor.

SECTION 8.5 EXEMPTION FROM TRANSFER TAXES.

         Pursuant to section 1146(c) of the Bankruptcy Code, the issuance,
transfer, or exchange of notes or equity securities under the Plan, the creation
of any mortgage, deed of trust, or other security interest, the making or
assignment of any lease or sublease, or the making or delivery of any deed or
other instrument of transfer under, in furtherance of, or in connection with,
the Plan, including, without limitation, those contemplated by the TWC
Settlement Agreement, the Restated Credit Documents, or any agreements of
consolidation, deeds, bills of sale, or assignments executed in connection with
any of the transactions contemplated under the Plan shall not be subject to any
stamp, real estate, transfer, mortgage recording, use, or other similar tax.

SECTION 8.6 SETOFF RIGHTS.

         Subject to the provisions of section 553 of the Bankruptcy Code, in the
event that a Debtor has a Cause of Action of any nature whatsoever against the
holder of a Claim, such Debtor may, but is not required to, setoff against the
Claim (and any payments or other distributions to be made in respect of such
Claim hereunder) a Debtor's Cause of Action against the holder. Neither the
failure to set off nor the allowance of any Claim under the Plan shall
constitute a waiver or release by a Debtor of any Cause of Action that a Debtor
has against the holder of a Claim.

SECTION 8.7 COMPLIANCE WITH TAX REQUIREMENTS.

         In connection with the Plan, the Debtors, the Disbursing Agent, and the
Residual Trustee shall comply with all withholding and reporting requirements
imposed by federal, state, local, and foreign taxing authorities and all
distributions hereunder shall be subject to such withholding and reporting
requirements.

SECTION 8.8 RECOGNITION OF GUARANTY RIGHTS.

         The classification of and manner of satisfying all Claims under the
Plan take into consideration (a) the existence of guaranties by a Debtor of
obligations of other Persons, and (b) the fact that a Debtor may be a joint
obligor with other Persons with respect to an obligation. Subject to the
provisions of the Confirmation Order, the New WCG Guarantee, or the Restated
Credit Documents, all Claims against a Debtor based upon any such guaranties or
joint obligations shall be discharged to the extent and in the manner provided
in the Plan; provided, however, that no creditor shall be entitled to receive
more than one recovery with respect to any of its Allowed Claims.

SECTION 8.9 COMPLIANCE WITH ALL APPLICABLE LAWS.

         If notified by any governmental authority that it is in violation of
any applicable law, rule, regulation, or order of such governmental authority
relating to its businesses, the Debtors shall take whatever action as may be
required to comply with such law, rule, regulation, or order,provided. however,
that nothing contained herein shall require such compliance if the legality or
applicability of any such requirement is being contested in good faith and, if
appropriate, an adequate reserve for such requirement has been set aside.

                                       34
<PAGE>

SECTION 8.10 BINDING EFFECT.

         The Plan shall be binding upon and inure to the benefit of the Debtors,
the WCG Entities, the WCG Indemnitees, the TWC Entities, the holders of all
Claims and Equity Interests, Class 5/6 Channeled Actions, and Securities Holder
Channeled Actions, and their respective successors and assigns.

SECTION 8.11 NOTICES.

         Whenever service is required in the Plan, such service shall be made so
as to be received by 5:00 p.m. Eastern Time on or before the date required.

SECTION 8.12 GOVERNING LAW.

         Unless a rule of law or procedure is supplied by federal law (including
the Bankruptcy Code and Bankruptcy Rules), the laws of the State of New York
shall govern the construction and implementation of the Plan and any agreements,
documents, and instruments executed in connection with the Plan or the Chapter
11 Cases, including the Plan Documents, except as may otherwise be provided in
such agreements, documents, instruments, and Plan Documents.

SECTION 8.13 SEVERABILITY.

         If the Bankruptcy Court determines that any provision of the Plan would
be unenforceable or would prevent the Plan from being confirmed, either on its
face or as applied to any Claim or Equity Interest or transaction, the Debtors,
with the consent of TWC, the Proponents, and the Administrative Agent, may
modify the Plan so that such provision shall not be applicable to the holder of
any Claim or Equity Interest or in such manner as will allow the Plan to be
confirmed. Such a determination by the Bankruptcy Court and modification by the
Debtors shall not (a) limit or affect the enforceability and operative effect of
any other provision of the Plan, or (b) require the resolicitation of any
acceptance or rejection of the Plan.

Dated:   August 12, 2002

                            [SIGNATURE PAGE FOLLOWS]

                                       35
<PAGE>

WILLIAMS COMMUNICATIONS GROUP, INC.

/s/ Scott E. Schubert
By: Scott E. Schubert
Its:

CG AUSTRIA, INC.

THE OFFICIAL COMMITTEE OF
UNSECURED CREDITORS

By:
Its:

LEUCADIA NATIONAL CORPORATION

/s/  Joseph A. Orlando
By:  Joseph A. Orlando
Its: Vice President

                                       36
<PAGE>
WILLIAMS COMMUNICATIONS GROUP, INC.

By:
Its:

CG AUSTRIA, INC.

By:
Its:

THE OFFICIAL COMMITTEE OF
UNSECURED CREDITORS

By A(2) INVESTMENTS, LDC

By: Amalgamated Gadget, L.P. as investment manager

By: Scepter Holdings, Inc. its General Partner

/s/ DAVID GILLESPIE
By: David Gillespie
Its: CFO

LEUCADIA NATIONAL CORPORATION

By:
Its

                                       37

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