Document:

<PAGE>
                                                                     EXHIBIT 4.1

================================================================================

                   TRANSCONTINENTAL GAS PIPE LINE CORPORATION
                                                     , as Company

                                       and
                                  CITIBANK N.A.
                                            , as Trustee

                                    INDENTURE

                            Dated as of July 3, 2002

                              Series A and Series B

                         8-7/8% Notes due July 15, 2012

================================================================================

<PAGE>

                             CROSS-REFERENCE TABLE*

<Table>
<Caption>
TIA Section                                                                                   Indenture Section
-----------                                                                                   -----------------

<S>                                                                                           <C>
310 (a)(1) ..................................................................................          6.10
     (a)(2)..................................................................................          6.10
     (a)(3)..................................................................................          N.A.
     (a)(4)..................................................................................          N.A.
     (a)(5)..................................................................................          6.10
     (b).....................................................................................          6.10;
7.01(b)
     (c).....................................................................................          N.A.
311 (a)......................................................................................          6.11
     (b).....................................................................................          6.11
     (c).....................................................................................          N.A.
312 (a)......................................................................................          2.05
     (b).....................................................................................          10.03
     (c).....................................................................................          10.03
313 (a)......................................................................................          6.06
     (b).....................................................................................          6.06
     (c).....................................................................................          6.06
     (d).....................................................................................          6.06
314 (a)......................................................................................          3.03
     (b).....................................................................................          N.A.
     (c)(1)..................................................................................          10.04
     (c)(2)..................................................................................          10.04
     (c)(3)..................................................................................          N.A.
     (d).....................................................................................          N.A.
     (e).....................................................................................          10.05
     (f).....................................................................................          N.A.
315 (a)......................................................................................          6.01(b)
     (b).....................................................................................          6.05
     (c).....................................................................................          6.01(a)
     (d).....................................................................................          6.01(c)
     (e).....................................................................................          5.11
316 (a)(last sentence).......................................................................          2.09
     (a)(1)(A)...............................................................................          5.05
     (a)(1)(B)...............................................................................          5.04
     (a)(2)..................................................................................          N.A.
     (b).....................................................................................          5.07
     (c).....................................................................................          8.04
317 (a)(1)...................................................................................          5.08
     (a)(2)..................................................................................          5.09
     (b).....................................................................................          2.04
318 (a)......................................................................................          9.01
318 (c)......................................................................................          9.01
</Table>

----------
N.A. means not applicable
* This Cross-Reference Table is not part of this Indenture

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>                  <C>                                                                                          <C>
                                                      ARTICLE I
                                     DEFINITIONS AND INCORPORATION BY REFERENCE

   Section 1.01      Definitions..................................................................................1
   Section 1.02      Other Definitions............................................................................5
   Section 1.03      Incorporation by Reference of Trust Indenture Act............................................5
   Section 1.04      Rules of Construction........................................................................5

                                                     ARTICLE II
                                                   THE SECURITIES

   Section 2.01      Form and Dating..............................................................................6
   Section 2.02      Execution and Authentication.................................................................7
   Section 2.03      Registrar and Paying Agent...................................................................7
   Section 2.04      Paying Agent to Hold Money in Trust..........................................................8
   Section 2.05      Holder Lists.................................................................................8
   Section 2.06      Transfer and Exchange........................................................................8
   Section 2.07      Certificated Securities.....................................................................12
   Section 2.08      Replacement Securities......................................................................13
   Section 2.09      Outstanding Securities......................................................................13
   Section 2.10      Treasury Securities.........................................................................13
   Section 2.11      Temporary Securities........................................................................13
   Section 2.12      Cancellation................................................................................14
   Section 2.13      Defaulted Interest..........................................................................14
   Section 2.14      Persons Deemed Owners.......................................................................14
   Section 2.15      CUSIP Numbers...............................................................................14

                                                     ARTICLE III
                                                      COVENANTS

   Section 3.01      Payment of Securities.......................................................................14
   Section 3.02      Maintenance of Office or Agency.............................................................15
   Section 3.03      SEC Reports; Financial Statements...........................................................15
   Section 3.04      Compliance Certificate......................................................................16
   Section 3.05      Limitation on Liens.........................................................................16
   Section 3.06      Limitation on Sale and Lease-Back Transactions..............................................19

                                                     ARTICLE IV
                                           CONSOLIDATION, MERGER AND SALE

   Section 4.01      Limitation on Mergers and Consolidations....................................................19
   Section 4.02      Successors Substituted......................................................................20

                                                      ARTICLE V
                                                DEFAULTS AND REMEDIES

   Section 5.01      Events of Default...........................................................................20
   Section 5.02      Acceleration................................................................................21
   Section 5.03      Other Remedies..............................................................................22
   Section 5.04      Waiver of Existing Defaults.................................................................22
   Section 5.05      Control by Majority.........................................................................23
   Section 5.06      Limitations on Suits........................................................................23
</Table>

                                        i

<PAGE>

<Table>
<S>                  <C>                                                                                         <C>
   Section 5.07      Rights of Holders to Receive Payment........................................................23
   Section 5.08      Collection Suit by Trustee..................................................................24
   Section 5.09      Trustee May File Proofs of Claim............................................................24
   Section 5.10      Priorities..................................................................................24
   Section 5.11      Undertaking for Costs.......................................................................24

                                                     ARTICLE VI
                                                       TRUSTEE

   Section 6.01      Duties of Trustee...........................................................................25
   Section 6.02      Rights of Trustee...........................................................................26
   Section 6.03      Individual Rights of Trustee................................................................27
   Section 6.04      Trustee's Disclaimer........................................................................27
   Section 6.05      Notice of Defaults..........................................................................27
   Section 6.06      Reports by Trustee to Holders...............................................................27
   Section 6.07      Compensation and Indemnity..................................................................27
   Section 6.08      Replacement of Trustee......................................................................28
   Section 6.09      Successor Trustee by Merger, etc............................................................29
   Section 6.10      Eligibility; Disqualification...............................................................29
   Section 6.11      Preferential Collection of Claims Against Company...........................................29

                                                     ARTICLE VII
                                               DISCHARGE OF INDENTURE

   Section 7.01      Termination of Company's Obligations........................................................29
   Section 7.02      Application of Trust Money..................................................................31
   Section 7.03      Repayment to Company........................................................................31
   Section 7.04      Reinstatement...............................................................................32

                                                    ARTICLE VIII
                                                     AMENDMENTS

   Section 8.01      Without Consent of Holders..................................................................32
   Section 8.02      With Consent of Holders.....................................................................33
   Section 8.03      Compliance with Trust Indenture Act.........................................................34
   Section 8.04      Revocation and Effect of Consents...........................................................34
   Section 8.05      Notation on or Exchange of Securities.......................................................34
   Section 8.06      Trustee to Sign Amendments, etc.............................................................34

                                                     ARTICLE IX
                                                     REDEMPTION

   Section 9.01      Notices to Trustee..........................................................................35
   Section 9.02      Selection of Securities to be Redeemed......................................................35
   Section 9.03      Notices to Holders..........................................................................35
   Section 9.04      Effect of Notices of Redemption.............................................................36
   Section 9.05      Deposit of Redemption Price.................................................................36
   Section 9.06      Securities Redeemed in Part.................................................................36
   Section 9.07      Optional Redemption.........................................................................36

                                                      ARTICLE X
                                                    MISCELLANEOUS

   Section 10.01     Trust Indenture Act Controls................................................................37
   Section 10.02     Notices.....................................................................................37
</Table>

                                       ii
<PAGE>

<Table>
<S>                     <C>                                                                                     <C>
   Section 10.03        Communication by Holders with Other Holders..............................................38
   Section 10.04        Certificate and Opinion as to Conditions Precedent.......................................38
   Section 10.05        Statements Required in Certificate or Opinion............................................38
   Section 10.06        Rules by Trustee and Agents..............................................................38
   Section 10.07        Legal Holidays...........................................................................38
   Section 10.08        No Recourse Against Others...............................................................39
   Section 10.09        Governing Law............................................................................39
   Section 10.10        No Adverse Interpretation of Other Agreements............................................39
   Section 10.11        Successors...............................................................................39
   Section 10.12        Severability.............................................................................39
   Section 10.13        Counterpart Originals....................................................................39
   Section 10.14        Table of Contents, Headings, etc.........................................................39

                                                      EXHIBITS

   EXHIBIT A            Form of Security........................................................................A-1
</Table>

                                       iii
<PAGE>

         INDENTURE dated as of July 3, 2002 between Transcontinental Gas Pipe
Line Corporation, a Delaware corporation (the "Company") and Citibank N.A., a
national banking association, as trustee (the "Trustee").

         Each party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders of the Company's 8-7/8% Series
A Notes due July 15, 2012 (the "Series A Securities") and 8-7/8% Series B Notes
due July 15, 2012 (the "Series B Securities" and together with the Series A
Securities, the "Securities").

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01 Definitions.

         "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by, or under direct or indirect common
control with, such specified Person. For purposes of this definition, "control"
of a Person shall mean the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and
"controlled" shall have meanings correlative to the foregoing. The Trustee may
request and may conclusively rely upon an Officers' Certificate to determine
whether any Person is an Affiliate of any specified Person.

         "Agent" means any Registrar or Paying Agent.

         "Attributable Debt" means, with respect to any Sale and Lease-Back
Transaction as of any particular time, the present value 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 the Company, be extended).

         "Bankruptcy Law" means Title 11, U.S. Code or any similar federal,
state or foreign law for the relief of debtors.

         "Board of Directors" of any Person means the board of directors of such
Person or any committee thereof duly authorized, with respect to any particular
matter, to act by or on behalf of the board of directors of such Person.

         "Business Day" means any day that is not a Legal Holiday.

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

         "Consolidated Funded Indebtedness" means the aggregate of all
outstanding Funded Indebtedness of the Company and its consolidated
Subsidiaries, determined on a consolidated basis in accordance with generally
accepted accounting principles.

         "Consolidated Net Tangible Assets" means the total assets appearing on
a consolidated balance sheet of the Company and its consolidated Subsidiaries,
less:

                  (1) intangible assets, unamortized debt discount and expense
         and stock expense and other deferred debits;

<PAGE>

                  (2) all current and accrued liabilities (other than
         Consolidated Funded Indebtedness and capitalized rentals or leases);
         deferred credits (other than deferred investment tax credits), deferred
         gains and deferred income and billings recorded as revenues deferred
         pending the outcome of a rate proceeding (less applicable income taxes)
         to the extent refunds thereof shall not have been finally determined;
         and

                  (3) all reserves (other than for deferred federal income taxes
         arising from timing differences) not already deducted from assets.

         "Corporate Trust Office of the Trustee" means the office of the Trustee
at which the corporate trust business of the Trustee shall be principally
administered, which office shall initially be located at the address of the
Trustee specified in Section 10.02 hereof and may be located at such other
address as the Trustee may give notice to the Company and the Holders or such
other address as a successor Trustee may designate from time to time by notice
to the Holders and the Company.

         "Custodian" means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

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

         "Depositary" means The Depository Trust Company, its nominees and their
respective successors.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and any successor statute.

         "Exchange Offer" means the offer that may be made by the Company
pursuant to the Registration Rights Agreement to exchange the Series B
Securities for the Series A Securities.

         "Exchange Offer Registration Statement" means a registration statement
under the Securities Act relating to an Exchange Offer, including the related
prospectus.

         "Funded Indebtedness" means any Indebtedness which matures more than
one year after the date as of which Funded Indebtedness is being determined less
any such Indebtedness as will be retired through or by means of any deposit or
payment required to be made within one year from such date under any prepayment
provision, sinking fund, purchase fund or otherwise.

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

         "Holder" means a Person in whose name a Security is registered.

         "Indebtedness" means indebtedness which is for money borrowed from
others.

         "Indenture" means this Indenture as amended or supplemented from time
to time.

         "Initial Issue Date" means the first date on which the Series A
Securities are issued under this Indenture.

                                       2
<PAGE>

         "Initial Purchasers" means any initial purchasers of Series A
Securities issued in connection with an offering under Rule 144A and/or
Regulation S, including without limitation, the Original Initial Purchasers, as
such in the Original Offering.

         "Interest Payment Date" shall have the meaning assigned to such term in
the Securities.

         "Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in any of New York, New York, Houston, Texas or a place of payment
are authorized or obligated by law, regulation or executive order to remain
closed.

         "Liquidated Damages" has the meaning given to such term in any
Registration Rights Agreement.

         "Maturity," when used with respect to any Security, means the date on
which the principal of such Security or an installment of principal becomes due
and payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.

         "Officer" means the Chairman of the Board, the Chief Executive Officer,
the President, any Vice Chairman of the Board, any Vice President, the Chief
Financial Officer, the Chief Accounting Officer, the Treasurer, any Assistant
Treasurer, the Controller, the Secretary or any Assistant Secretary of a Person.

         "Officers' Certificate" means a certificate signed by two Officers of a
Person, one of whom must be the Person's Chief Executive Officer, Chief
Financial Officer or Chief Accounting Officer.

         "Opinion of Counsel" means a written opinion from legal counsel who is
acceptable to the Trustee. Such counsel may be an employee of or counsel to the
Company, its parent corporation or the Trustee.

         "Original Initial Purchasers" means Salomon Smith Barney Inc., ABN AMRO
Incorporated, Banc of America Securities LLC, Commerzbank Capital Markets Corp.,
Credit Lyonnais Securities (USA) Inc., Credit Suisse First Boston Corporation,
J.P. Morgan Securities Inc., The Royal Bank of Scotland plc, Scotia Capital
(USA) Inc., UBS Warburg LLC, Banc One Capital Markets, Inc., Barclays Capital
Inc., Mizuho International plc and TD Securities (USA) Inc., as initial
purchasers of the Series A Securities in the Original Offering.

         "Original Offering" means the offering of the Series A Securities
pursuant to the Original Offering Memorandum.

         "Original Offering Memorandum" means the Confidential Offering
Memorandum of the Company, dated June 28, 2002, relating to the offering of the
Series A Securities.

         "Person" means any individual, corporation, partnership, limited
liability company, limited or general partnership, joint venture, incorporated
or unincorporated association, joint-stock company, trust, unincorporated
organization or government or other agency or political subdivision thereof or
other entity of any kind.

         "Principal Property" means any natural gas pipeline, gathering property
or natural gas processing plant located in the United States, except any such
property that in the opinion of the Board of Directors of the Company is not of
material importance to the total business conducted by the Company and its
consolidated Subsidiaries. "Principal Property" shall not include (i) the
production or proceeds from production of gas processing plants or natural gas
or petroleum products in any pipeline or storage field and (ii) any property
acquired or constructed by any Subsidiary of the Company after December 31,
1996.

                                       3
<PAGE>

         "Private Exchange" means the offer by the Company to any of the Initial
Purchasers to issue and deliver to such Initial Purchaser, in exchange for the
Series A Securities held by such Initial Purchaser as part of its initial
distribution, a like aggregate principal amount of Private Exchange Securities.

         "Private Exchange Securities" means the Series B Securities to be
issued pursuant to this Indenture to an Initial Purchaser in a Private Exchange.

         "QIB" means a "qualified institutional buyer" as defined in Rule 144A.

         "Redemption Date," when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.

         "Redemption Price" shall have the meaning assigned to such term in the
Securities.

         "Registration Rights Agreement" means any registration rights agreement
entered into by the Company relating to any Securities issued hereunder,
including without limitation, the Registration Rights Agreement, dated as of
July 3, 2002, among the Company and the Original Initial Purchasers.

         "Responsible Officer" when used with respect to the Trustee means any
vice president, (whether or not designated by numbers or words added before or
after the title "vice president") , any assistant vice president, or any other
officer of the Trustee customarily performing functions similar to those
performed by the persons who at the time shall be such officers, respectively,
or to whom any corporate trust matter is referred because of his knowledge of
and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

         "SEC" means the Securities and Exchange Commission.

         "Securities" means the Series A Securities and the Series B Securities.

         "Securities Act" means the Securities Act of 1933, as amended, and any
successor statute.

         "Securities Custodian" means the Trustee, as custodian with respect to
the Securities in global form, or any successor entity thereto.

         "Series A Securities" means the Company's 8-7/8% Series A Notes due
July 15, 2012, to be issued pursuant to this Indenture.

         "Series B Securities" means the Company's 8-7/8% Series B Notes due
July 15, 2012 to be issued pursuant to this Indenture in the Exchange Offer.

         "Shelf Registration Statement" means the registration statement to be
filed by the Company, in connection with the offer and sale of Series A
Securities or Private Exchange Securities, pursuant to the Registration Rights
Agreement.

         "Stated Maturity" means, with respect to any Security, the date
specified in such Security as the fixed date on which the principal of such
Security is due and payable, including pursuant to any mandatory redemption
provision (but excluding any provision providing for the repurchase of such
Security at the option of the holder thereof upon the happening of any
contingency unless such contingency has occurred).

         "Subsidiary" of any Person means a corporation more than 50% of the
outstanding voting stock of which is owned, directly or indirectly, by such
Person or by one or more other Subsidiaries of such Person, or by such Person
and one or more other Subsidiaries of such Person. For the purposes of this
definition, "voting stock" means stock which ordinarily has voting power for the
election of directors,

                                       4
<PAGE>

whether at all times or only so long as no senior class of stock has such voting
power by reason of any contingency.

         "TIA" means the Trust Indenture Act of 1939, as amended (15 U.S.C.
Sections 77aaa-77bbbb), as in effect on the Initial Issue Date.

         "Transfer Restricted Securities" with respect to any Securities, means
Registrable Securities (as defined in the Registration Rights Agreement
applicable to such Securities).

         "Trustee" means the party named as such above until a successor
replaces it in accordance with the applicable provisions of this Indenture and
thereafter means the successor serving hereunder.

         "U.S. Government Obligations" means direct obligations of the United
States of America for the payment of which the full faith and credit of the
United States of America is pledged.

Section 1.02 Other Definitions

<Table>
<Caption>
                               Term                                Defined in Section
                               ----                                ------------------

<S>                                                                <C>
"Agent Members".................................................         2.01(c)
"DTC"...........................................................         2.03
"Event of Default"..............................................         5.01
"Global Security"...............................................         2.01(b)
"Paying Agent"..................................................         2.03
"Registrar".....................................................         2.03
"Regulation S"..................................................         2.01(b)
"Rule 144A".....................................................         2.01(b)
"Sale and Lease-Back Transaction"...............................         3.06
"Successor".....................................................         4.01
</Table>

Section 1.03 Incorporation by Reference of Trust Indenture Act

         Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

         "commission" means the SEC.

         "indenture securities" means the Securities.

         "indenture security holder" means a Holder.

         "indenture to be qualified" means this Indenture.

         "indenture trustee" or "institutional trustee" means the Trustee.

         "obligor" on the indenture securities means the Company.

         All terms used in this Indenture that are defined by the TIA, defined
by a TIA reference to another statute or defined by an SEC rule under the TIA
have the meanings so assigned to them.

Section 1.04 Rules of Construction

         Unless the context otherwise requires:

                  (1) a term has the meaning assigned to it;

                                       5
<PAGE>

                  (2) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with GAAP;

                  (3) "or" is not exclusive;

                  (4) words in the singular include the plural, and in the
         plural include the singular; and

                  (5) provisions apply to successive events and transactions.

                                   ARTICLE II

                                 THE SECURITIES

Section 2.01 Form and Dating

                  (a) General. The Securities and the Trustee's certificate of
         authentication shall be substantially in the form of Exhibit A to this
         Indenture, the terms of which are hereby incorporated into this
         Indenture. The Securities may have notations, legends or endorsements
         required by law, securities exchange rule, the Company's certificate of
         incorporation, memorandum of association, articles of association,
         other organizational documents, agreements to which the Company is
         subject, if any, or usage, provided that any such notation, legend or
         endorsement is in a form acceptable to the Company. Each Security shall
         be dated the date of its authentication. The Securities shall be in
         registered form without coupons and only in denominations of $1,000 and
         any integral multiples thereof. The terms and provisions contained in
         the Securities shall constitute, and are hereby expressly made, a part
         of this Indenture and to the extent applicable, the Company and the
         Trustee, by their execution and delivery of this Indenture, expressly
         agree to such terms and provisions and to be bound thereby. The
         Securities shall be dated the date of their authentication.

                  (b) Global Securities. Series A Securities offered and sold to
         a QIB in reliance on Rule 144A under the Securities Act ("Rule 144A")
         or in reliance on Regulation S under the Securities Act ("Regulation
         S") shall be issued initially in the form of one or more permanent
         global Securities in definitive, fully registered form without interest
         coupons with the global securities legend and restricted securities
         legend set forth in Section 2.06 (each, a "Global Security"), which
         shall be deposited on behalf of the purchasers of the Series A
         Securities represented thereby with the Trustee, at its New York
         office, as custodian for the Depositary (or with such other custodian
         as the Depositary may direct), and registered in the name of the
         Depositary or a nominee of the Depositary, duly executed by the Company
         and authenticated by the Trustee as hereinafter provided. The aggregate
         principal amount of the Global Securities may from time to time be
         increased or decreased by adjustments made on the records of the
         Trustee and the Depositary or its nominee as hereinafter provided.

                  (c) Book-entry Provisions. This Section 2.01(c) shall apply
         only to a Global Security deposited with or on behalf of the
         Depositary.

         The Company shall execute and the Trustee shall, in accordance with
this Section 2.01(c), authenticate and deliver initially one or more Global
Securities that (i) shall be registered in the name of the Depositary for such
Global Security or Global Securities or the nominee of such Depositary and (ii)
shall be delivered by the Trustee to such Depositary or pursuant to such
Depositary's instructions or held by the Trustee as custodian for the
Depositary.

         Members of, or participants in, the Depositary ("Agent Members") shall
have no rights under this Indenture with respect to any Global Security held on
their behalf by the Depositary or by the Trustee as the custodian of the
Depositary or under such Global Security, and the Depositary may be treated by
the

                                       6
<PAGE>

Company, the Trustee and any agent of the Company or the Trustee as the absolute
owner of such Global Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent of
the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by the Depositary or impair, as between
the Depositary and its Agent Members, the operation of customary practices of
such Depositary governing the exercise of the rights of a holder of a beneficial
interest in any Global Security.

                  (d) Certificated Securities. Except as provided in this
         Section 2.01 or Section 2.06 or 2.07, owners of beneficial interests in
         Global Securities will not be entitled to receive physical delivery of
         certificated Securities.

Section 2.02 Execution and Authentication

         One Officer of the Company shall sign the Securities on behalf of the
Company by manual or facsimile signature. The Company's seal may be (but shall
not be required to be) impressed, affixed, imprinted or reproduced on the
Securities and may be in facsimile form.

         If an Officer of the Company whose signature is on a Security no longer
holds that office at the time the Security is authenticated, the Security shall
be valid nevertheless.

         A Security shall not be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose until authenticated by the manual
signature of an authorized signatory of the Trustee, which signature shall be
conclusive evidence that the Security has been authenticated under this
Indenture.

         The Trustee shall authenticate (i) for original issue on the Initial
Issue Date, Series A Securities in the aggregate principal amount of
$325,000,000, (ii) Series B Securities for original issue, pursuant to any
Exchange Offer or Private Exchange, for a like principal amount of Series A
Securities and (iii) any amount of additional Securities specified by the
Company, in each case, upon a written order of the Company signed by one Officer
of the Company. Such order shall specify (a) the amount of the Securities to be
authenticated and the date of original issue thereof, and (b) whether the
Securities are Series A Securities or Series B Securities. The aggregate
principal amount of Securities of any series outstanding at any time may not
exceed the aggregate principal amount of Securities of such series authorized
for issuance by the Company pursuant to one or more written orders of the
Company, except as provided in Section 2.08 hereof. Subject to the foregoing,
the aggregate principal amount of Securities of any series that may be issued
under this Indenture shall not be limited.

         The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Securities. Unless limited by the terms of such
appointment, an authenticating agent may authenticate Securities whenever the
Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same rights as an Agent to deal with the Company, or an Affiliate of any of
them.

         The Series A Securities and the Series B Securities shall be considered
collectively to be a single class for all purposes of this Indenture, including,
without limitation, waivers, amendments, redemptions and offers to purchase.

Section 2.03 Registrar and Paying Agent

         The Company shall maintain an office or agency where Securities may be
presented for registration of transfer or exchange ("Registrar") and an office
or agency where Securities may be presented for payment ("Paying Agent"). The
Registrar shall keep a register of the Securities and of their transfer and
exchange. The Company may appoint one or more co-registrars and one or more
additional paying agents. The term "Registrar" includes any co-registrar and the
term "Paying Agent" includes any additional paying agent.

                                       7
<PAGE>

         The Company shall enter into an appropriate agency agreement with any
Registrar or Paying Agent not a party to this Indenture. The agreement shall
implement the provisions of this Indenture that relate to such Agent. The
Company shall notify the Trustee of the name and address of any Agent not a
party to this Indenture. The Company may change any Paying Agent or Registrar
without notice to any Holder. If the Company fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as such. The
Company or any of its Subsidiaries may act as Paying Agent or Registrar.

         The Company initially appoints the Trustee as Registrar and Paying
Agent.

         The Company initially appoints The Depository Trust Company ("DTC") to
act as Depositary with respect to each Global Security.

Section 2.04 Paying Agent to Hold Money in Trust

         The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust for the benefit of
Holders or the Trustee all money held by the Paying Agent for the payment of
principal of or premium, if any, or interest on the Securities, whether such
money shall have been paid to it by the Company and will notify the Trustee of
any default by the Company in making any such payment. While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it to
the Trustee and to account for any funds disbursed. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee and to account
for any funds disbursed. Upon payment over to the Trustee and upon accounting
for any funds disbursed, the Paying Agent (if other than the Company or a
Subsidiary of the Company) shall have no further liability for the money. If the
Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate
and hold in a separate trust fund for the benefit of the Holders all money held
by it as Paying Agent.

Section 2.05 Holder Lists

         The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Holders and shall otherwise comply with TIA Section 312(a). If the Trustee is
not the Registrar, the Company shall furnish to the Trustee at least seven
Business Days before each Interest Payment Date, and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of Holders, and the
Company shall otherwise comply with TIA Section 312(a).

Section 2.06 Transfer and Exchange

                  (a) Transfer and Exchange of Global Securities. (iii) The
         transfer and exchange of Global Securities or beneficial interests
         therein shall be effected through the Depositary, in accordance with
         this Indenture (including applicable restrictions on transfer set forth
         herein, if any) and the procedures of the Depositary therefor. A
         transferor of a beneficial interest in a Global Security shall deliver
         to the Registrar a written order given in accordance with the
         Depositary's procedures containing information regarding the
         participant account of the Depositary to be credited with a beneficial
         interest in the Global Security. The Registrar shall, in accordance
         with such instructions, instruct the Depositary to credit to the
         account of the Person specified in such instructions a beneficial
         interest in the Global Security and to debit the account of the Person
         making the transfer the beneficial interest in the Global Security
         being transferred.

                           (i) Notwithstanding any other provisions of this
                  Indenture (other than the provisions set forth in Section
                  2.07), a Global Security may not be transferred as a whole
                  except by the Depositary to a nominee of the Depositary or by
                  a nominee of the Depositary to the Depositary or another
                  nominee of the Depositary or by the Depositary

                                       8
<PAGE>

                  or any such nominee to a successor Depositary or a nominee of
                  such successor Depositary.

                           (ii) If a Global Security is exchanged for Securities
                  in definitive registered form pursuant to this Section 2.06 or
                  Section 2.07, prior to the consummation of an Exchange Offer
                  or prior to or in a transfer made pursuant to an effective
                  Shelf Registration Statement with respect to such Securities,
                  such Securities may be exchanged only in accordance with such
                  procedures as are substantially consistent with the provisions
                  of this Section 2.06 (including the certification and other
                  requirements set forth on the reverse of the Series A
                  Securities intended to ensure that such transfers comply with
                  Rule 144A or Regulation S, as the case may be, or are
                  otherwise in compliance with the requirements of the
                  Securities Act) and such other procedures as may from time to
                  time be adopted by the Company.

                  (b) Legend.

                           (i) Except as permitted by the following paragraphs
                  (ii), (iii) and (iv), each Security certificate evidencing the
                  Global Securities (and all Securities issued in exchange
                  therefor or in substitution thereof) shall bear a legend in
                  substantially the following form:

         THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR
THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE NEXT
SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE
HOLDER:

                  (1) REPRESENTS THAT (A) IT IS A QUALIFIED INSTITUTIONAL BUYER,
         AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT, OR (B) IT HAS
         ACQUIRED THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
         REGULATION S UNDER THE SECURITIES ACT;

                  (2) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS
         SECURITY, EXCEPT (A) TO TRANSCONTINENTAL GAS PIPE LINE CORPORATION OR
         ANY OF ITS SUBSIDIARIES, (B) TO A PERSON WHOM THE SELLER REASONABLY
         BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER PURCHASING FOR ITS OWN
         ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A
         TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C) IN AN OFFSHORE
         TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF THE SECURITIES ACT,
         (D) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE
         SECURITIES ACT, OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
         AND, IN EACH OF THE CASES, IN ACCORDANCE WITH THE APPLICABLE SECURITIES
         LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE
         JURISDICTION;

                  (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
         SECURITY OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
         THE EFFECT OF THIS LEGEND; AND

                  (4) AGREES THAT, BEFORE THE HOLDER OFFERS, SELLS OR OTHERWISE
         TRANSFERS THIS SECURITY, TRANSCONTINENTAL GAS PIPE LINE CORPORATION MAY
         REQUIRE THE HOLDER OF THIS SECURITY TO DELIVER A WRITTEN OPINION,
         CERTIFICATIONS AND/OR OTHER INFORMATION THAT IT REASONABLY REQUIRES

                                       9
<PAGE>

         TO CONFIRM THAT SUCH PROPOSED TRANSFER IS BEING MADE PURSUANT TO AN
         EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED STATES.

         AS USED IN THIS SECURITY, THE TERMS "OFFSHORE TRANSACTION," "U.S.
PERSON" AND "UNITED STATES" HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF
REGULATION S UNDER THE SECURITIES ACT.

                           (ii) Upon any sale or transfer of a Transfer
                  Restricted Security (including any Transfer Restricted
                  Security represented by a Global Security) pursuant to Rule
                  144 under the Securities Act, in the case of any Transfer
                  Restricted Security that is represented by a Global Security,
                  the Registrar shall permit the Holder thereof to exchange such
                  Transfer Restricted Security for a certificated Security that
                  does not bear the legend set forth above and rescind any
                  restriction on the transfer of such Transfer Restricted
                  Security, if the Holder certifies in writing to the Registrar
                  that its request for such exchange was made in reliance on
                  Rule 144 (such certification to be in the form set forth on
                  the reverse of the Security).

                           (iii) After a transfer of any Series A Securities or
                  Private Exchange Securities during the period of the
                  effectiveness of and pursuant to a Shelf Registration
                  Statement with respect to such Series A Securities or Private
                  Exchange Securities, as the case may be, all requirements
                  pertaining to legends on such Original Security or such
                  Private Exchange Security will cease to apply, the
                  requirements requiring any such Original Security or such
                  Private Exchange Security issued to certain Holders be issued
                  in global form will cease to apply, and a certificated
                  Original Security or Private Exchange Security without legends
                  will be available to the transferee of the Holder of such
                  Series A Securities or Private Exchange Securities upon
                  exchange of such transferring Holder's certificated Original
                  Security or Private Exchange Security or directions to
                  transfer such Holder's interest in the Global Security, as
                  applicable.

                           (iv) Upon the consummation of a Registered Exchange
                  Offer with respect to the Series A Securities pursuant to
                  which Holders of such Series A Securities are offered Exchange
                  Securities in exchange for their Series A Securities, all
                  requirements pertaining to such Series A Securities that
                  Series A Securities issued to certain Holders be issued in
                  global form will cease to apply and certificated Series A
                  Securities with the restricted securities legend set forth in
                  Section 2.06(b) will be available to Holders of such Series A
                  Securities that do not exchange their Series A Securities, and
                  Exchange Securities in certificated or global form will be
                  available to Holders that exchange such Series A Securities in
                  such Exchange Offer.

                           (v) Upon the consummation of a Private Exchange with
                  respect to the Series A Securities pursuant to which Holders
                  of such Series A Securities are offered Private Exchange
                  Securities in exchange for their Series A Securities, all
                  requirements pertaining to such Series A Securities that
                  Series A Securities issued to certain Holders be issued in
                  global form will still apply, and Private Exchange Securities
                  in global form with the Restricted Securities Legend set forth
                  in Section 2.06(b) will be available to Holders that exchange
                  such Series A Securities in such Private Exchange.

                  (c) Cancellation or Adjustment of Global Security. At such
         time as all beneficial interests in a Global Security have either been
         exchanged for certificated Securities, redeemed, repurchased or
         canceled, such Global Security shall be returned to the Depositary for
         cancellation or retained and canceled by the Trustee. At any time prior
         to such cancellation, if any beneficial interest in a Global Security
         is exchanged for certificated Securities, redeemed, repurchased or
         canceled, the principal amount of Securities represented by such Global
         Security shall be reduced and an adjustment shall be made on the books
         and records of the Trustee (if it is then the

                                       10
<PAGE>

         Securities Custodian for such Global Security) with respect to such
         Global Security, by the Trustee or the Securities Custodian, to reflect
         such reduction.

                  (d) Obligations with Respect to Transfers and Exchanges of
         Securities.

                           (i) To permit registrations of transfers and
                  exchanges, the Company shall execute and the Trustee shall
                  authenticate certificated Securities and Global Securities at
                  the Registrar's or co-Registrar's request. No service charge
                  shall be made for any registration of transfer or exchange,
                  but the Company may require payment of a sum sufficient to
                  cover any transfer tax, assessments, or similar governmental
                  charge payable in connection therewith (other than any such
                  transfer taxes, assessments or similar governmental charge
                  payable upon exchange or transfer pursuant to Sections 5.11,
                  8.05 and 9.06).

                           (ii) The Registrar or co-registrar shall not be
                  required to register the transfer of or exchange of (a) any
                  certificated Security selected for redemption in whole or in
                  part pursuant to Article IX, except the unredeemed portion of
                  any certificated Security being redeemed in part, or (b) any
                  Security for a period beginning 15 Business Days before the
                  mailing of a notice of an offer to repurchase or redeem
                  Securities or 15 Business Days before an interest payment
                  date.

                           (iii) Prior to the due presentation for registration
                  of transfer of any Security, the Company, the Trustee, the
                  Paying Agent, the Registrar or any co-Registrar may deem and
                  treat the Person in whose name a Security is registered as the
                  absolute owner of such Security for the purpose of receiving
                  payment of principal of, premium, if any, and interest and
                  Liquidated Damages, if any, on such Security and for all other
                  purposes whatsoever, whether or not such Security is overdue,
                  and none of the Company, the Trustee, the Paying Agent, the
                  Registrar or any co-registrar shall be affected by notice to
                  the contrary.

                           (iv) All Securities issued upon any transfer or
                  exchange pursuant to the terms of this Indenture shall
                  evidence the same debt and shall be entitled to the same
                  benefits under this Indenture as the Securities surrendered
                  upon such transfer or exchange.

                  (e) No Obligation of the Trustee.

                           (i) The Trustee shall have no responsibility or
                  obligation to any beneficial owner of a Global Security, any
                  Agent Member or other Person with respect to the accuracy of
                  the records of the Depositary or its nominee or of any
                  participant or member thereof, with respect to any ownership
                  interest in the Securities or with respect to the delivery to
                  any participant, member, beneficial owner or other Person
                  (other than the Depositary) of any notice (including any
                  notice of redemption) or the payment of any amount, under or
                  with respect to such Securities. All notices and
                  communications to be given to the Holders and all payments to
                  be made to Holders under the Securities shall be given or made
                  only to or upon the order of the registered Holders (which
                  shall be the Depositary or its nominee in the case of a Global
                  Security). The rights of beneficial owners in any Global
                  Security shall be exercised only through the Depositary
                  subject to the applicable rules and procedures of the
                  Depositary. The Trustee may rely conclusively and shall be
                  fully protected in relying upon information furnished by the
                  Depositary with respect to its members, participants and any
                  beneficial owners.

                           (ii) The Trustee shall have no obligation or duty to
                  monitor, determine or inquire as to compliance with any
                  restrictions on transfer imposed under this Indenture or under
                  applicable law with respect to any transfer of any interest in
                  any Security

                                       11
<PAGE>

                  (including any transfers between or among Depositary
                  participants, members or beneficial owners in any Global
                  Security) other than to require delivery of such certificates
                  and other documentation or evidence as are expressly required
                  by, and to do so if and when expressly required by, the terms
                  of this Indenture, and to examine the same to determine
                  substantial compliance as to form with the express
                  requirements hereof.

Section 2.07 Certificated Securities

                  (a) A Global Security deposited with the Depositary or with
         the Trustee as custodian for the Depositary pursuant to Section 2.01
         shall be transferred to the beneficial owners thereof in the form of
         certificated Securities in an aggregate principal amount equal to the
         principal amount of such Global Security, in exchange for such Global
         Security, only if such transfer complies with Section 2.06 and (i) the
         Depositary notifies the Company that it is unwilling or unable to
         continue as Depositary for such Global Security or if at any time such
         Depositary ceases to be a "clearing agency" registered under the
         Exchange Act and a successor depositary is not appointed by the Company
         within 90 days of such notice, or (ii) the Company, in its sole
         discretion, notifies the Trustee in writing that it elects to cause the
         issuance of certificated Securities under this Indenture.

                  (b) Any Global Security that is transferred to the beneficial
         owners thereof pursuant to this Section shall be surrendered by the
         Depositary to the Trustee at its office located in the Borough of
         Manhattan, The City of New York, to be so transferred, in whole or from
         time to time in part, without charge, and the Trustee shall
         authenticate and deliver, upon such transfer of each portion of such
         Global Security, an equal aggregate principal amount of certificated
         Securities of authorized denominations. Any portion of a Global
         Security transferred pursuant to this Section shall be executed,
         authenticated and delivered only in denominations of $1,000 and any
         integral multiple thereof and registered in such names as the
         Depositary shall direct. Any certificated Original Security delivered
         in exchange for an interest in the Global Security shall, except as
         otherwise provided by Section 2.06(d), bear the restricted securities
         legend set forth in Section 2.06(b).

                  (c) Subject to the provisions of Section 2.06(b), the
         registered Holder of a Global Security may grant proxies and otherwise
         authorize any Person, including Agent Members and Persons that may hold
         interests through Agent Members, to take any action which a Holder is
         entitled to take under this Indenture or the Securities.

                  (d) If either of the events specified in Section 2.07(a)
         occurs, the Company shall promptly make available to the Trustee a
         reasonable supply of certificated Securities in definitive, fully
         registered form without interest coupons.

                  (e) If a certificated Security issued pursuant to this Section
         2.07 is exchanged for another certificated Security prior to the
         consummation of an Exchange Offer or prior to or in a transfer made
         pursuant to an effective Shelf Registration Statement with respect to
         such Securities, such Securities may be exchanged only in accordance
         with such procedures as are substantially consistent with the
         provisions of (i) Section 2.06(a)(iii) (including the certification and
         other requirements set forth on the reverse of the Series A Securities
         intended to ensure that such transfers comply with Rule 144A or
         Regulation S, as the case may be, or are otherwise in compliance with
         the requirements of the Securities Act) and such other procedures as
         may from time to time be adopted by the Company and (ii) Section
         2.06(b).

                                       12
<PAGE>

Section 2.08 Replacement Securities

         If any mutilated Security is surrendered to the Trustee, or the Company
and the Trustee receive evidence to their satisfaction of the destruction, loss
or theft of any Security, the Company shall issue and the Trustee shall
authenticate a replacement Security, but only if the Trustee's requirements are
met. If required by the Trustee or the Company, such Holder must furnish an
indemnity bond that is sufficient in the judgment of the Trustee and the Company
to protect the Company, the Trustee, any Agent or any authenticating agent from
any loss which any of them may suffer if a Security is replaced. The Company and
the Trustee may charge for their expenses in replacing a Security. If, after the
delivery of such replacement Security, a bona fide purchaser of the original
Security in lieu of which such replacement Security was issued presents for
payment or registration such original Security, the Trustee shall be entitled to
recover such replacement Security from the Person to whom it was delivered or
any Person taking therefrom, except a bona fide purchaser, and shall be entitled
to recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Trustee or the Company in
connection therewith.

         Every replacement Security is an additional obligation of the Company.

Section 2.09 Outstanding Securities

         The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered to
it for cancellation, those reductions in the interest in a Global Security
effected by the Trustee hereunder and those described in this Section 2.09 as
not outstanding; provided, however, that in determining whether the holders of
the requisite principal amount of outstanding Securities are present at a
meeting of holders of Securities for quorum purposes or have consented to or
voted in favor of any request, demand, authorization, direction, notice,
consent, waiver, amendment or modification hereunder, Securities held for the
account of the Company, any of its Subsidiaries or any of their respective
Affiliates shall be disregarded and deemed not to be outstanding, except that in
determining whether the Trustee shall be protected in making such a
determination or relying upon any such quorum, consent or vote, only Securities
which a Responsible Officer of the Trustee actually knows to be so owned shall
be so disregarded.

         If a Security is replaced pursuant to Section 2.08 hereof, it ceases to
be outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

         If the principal amount of any Security is considered paid under
Section 3.01 hereof, it ceases to be outstanding and interest on it ceases to
accrue.

         A Security does not cease to be outstanding because the Company or any
of its Affiliates holds the Security.

Section 2.10 Treasury Securities

         In determining whether the Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent, Securities owned
by the Company or any of its Affiliates shall be disregarded, except that for
the purpose of determining whether the Trustee shall be protected in relying on
any such direction, waiver or consent, only Securities which a Responsible
Officer of the Trustee actually knows are so owned shall be so disregarded.

Section 2.11 Temporary Securities

         Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities. Temporary
Securities shall be substantially in the form of definitive Securities, but may
have variations that the Company considers appropriate for temporary Securities.
Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate definitive

                                       13
<PAGE>

Securities in exchange for temporary Securities. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities.

Section 2.12 Cancellation

         The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any Securities surrendered to them for registration of transfer, exchange or
payment. The Trustee shall cancel all Securities surrendered for registration of
transfer, exchange, payment, replacement or cancellation. All canceled
Securities held by the Trustee shall be disposed of in accordance with the usual
disposal procedures of the Trustee. The Company may not issue new Securities to
replace Securities that have been paid or that have been delivered to the
Trustee for cancellation.

Section 2.13 Defaulted Interest

         If the Company defaults in a payment of interest on the Securities, it
shall pay the defaulted interest in any lawful manner plus, to the extent
lawful, interest on the defaulted interest, in each case at the rate provided in
the Securities and in Section 3.01 hereof. The Company may pay the defaulted
interest to the Persons who are Holders on a subsequent special record date. At
least 15 days before any special record date, the Company (or the Trustee, in
the name of and at the expense of the Company) shall mail to Holders a notice
that states the special record date, the related payment date and the amount of
such interest to be paid.

Section 2.14 Persons Deemed Owners

         The Company, the Trustee, any Agent and any authenticating agent may
treat the Person in whose name any Security is registered as the owner of such
Security for the purpose of receiving payments of principal of or premium, if
any, or interest on such Security and for all other purposes. None of the
Company, the Trustee, any Agent or any authenticating agent shall be affected by
any notice to the contrary.

Section 2.15 CUSIP Numbers

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

                                  ARTICLE III

                                    COVENANTS

Section 3.01 Payment of Securities

         The Company shall pay the principal of and premium, if any, Liquidated
Damages, if any, and interest on the Securities on the dates and in the manner
provided in the Securities and in this Indenture. Principal, premium, if any,
Liquidated Damages, if any, and interest shall be considered paid on the date
due if the Paying Agent, other than the Company or a Subsidiary of the Company,
holds by 11:00 a.m., Eastern time, on that date money deposited by the Company
designated for and sufficient to pay all principal, premium, if any, Liquidated
Damages, if any, and interest then due.

                                       14
<PAGE>

         To the extent lawful, the Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal, premium, if any, Liquidated Damages, if any, and interest payments
(without regard to any applicable grace period) at a rate equal to the then
applicable interest rate on the Securities.

Section 3.02 Maintenance of Office or Agency

         The Company shall maintain, in the Borough of Manhattan, The City of
New York, an office or agency (which may be an office of the Trustee, the
Registrar or the Paying Agent) where Securities may be presented for
registration of transfer or exchange, where Securities may be presented for
payment and where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. Unless otherwise designated by the
Company by written notice to the Trustee, such office or agency shall be the
principal office of the Trustee in the Borough of Manhattan, The City of New
York, which, on the date hereof, is located at the address set forth in Section
10.02 hereof. The Company shall give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any
time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee.

         The Company may also from time to time designate one or more other
offices or agencies where the Securities may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, The City of New York for such purposes. The Company shall
give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency. The
Company hereby designates the Corporate Trust Office of the Trustee as one such
office or agency of the Company in accordance with Section 2.03 hereof.

Section 3.03 SEC Reports; Financial Statements

                  (a) Notwithstanding that the Company may not be required to
         remain subject to the reporting requirements of Section 13 or 15(d) of
         the Exchange Act, the Company shall file with the SEC and provide the
         Trustee and the Holders with such annual and quarterly reports and such
         information, documents and other reports specified in Sections 13 and
         15(d) of the Exchange Act within 15 days after the date it is required
         (or would otherwise have been required) to file such reports,
         information and documents. Delivery of such reports, information and
         documents to the Trustee is for informational purposes only and the
         Trustee's receipt of such shall not constitute constructive notice of
         any information contained therein or determinable from information
         contained therein, including the Company's compliance with any of the
         covenants hereunder (as to which the Trustee is entitled to rely
         exclusively on Officers' Certificates).

                  (b) In addition, whether or not required by the rules and
         regulations of the SEC, the Company shall file a copy of all such
         information and reports with the SEC for public availability (unless
         the SEC will not accept such filing). In addition, the Company shall
         furnish to the Holders and to prospective investors, upon the requests
         of Holders, any information required to be delivered pursuant to Rule
         144A(d)(4) under the Securities Act so long as the Securities are not
         freely transferable under the Securities Act.

                  (c) The Company shall provide the Trustee with a sufficient
         number of copies of all reports and other documents and information
         that the Trustee may be required to deliver to Holders under this
         Section 3.03.

                  (d) Delivery of such reports, information and documents to the
         Trustee is for informational purposes only and the Trustee's receipt of
         such shall not constitute constructive

                                       15
<PAGE>

         notice of any information contained therein or determinable from
         information contained therein, including the Company's compliance with
         any of its covenants hereunder (as to which the Trustee is entitled to
         rely exclusively on Officer's Certificates).

Section 3.04 Compliance Certificate

                  (a) The Company shall deliver to the Trustee, on or prior to
         the last day of the fifth month after the end of each fiscal year of
         the Company, a statement signed by two Officers of the Company (one of
         whom shall be the principal financial, principal accounting or
         principal executive officer of the Company), which statement need not
         constitute an Officers' Certificate, complying with TIA Section
         314(a)(4) and stating that in the course of performance by the signing
         Officers of the Company of their duties as such Officers, they would
         normally obtain knowledge of the keeping, observing, performing and
         fulfilling by the Company, of its obligations under this Indenture, and
         further stating, as to each such Officer signing such statement, that
         to the best of his knowledge, the Company has kept, observed, performed
         and fulfilled each and every covenant contained in this Indenture and
         is not in default in the performance or observance of any of the terms,
         provisions and conditions hereof (or, if a Default or Event of Default
         shall have occurred, describing all such Defaults or Events of Default
         of which such Officer may have knowledge and what action the Company is
         taking or proposes to take with respect thereto).

                  (b) The Company shall, so long as any of the Securities are
         outstanding, deliver to the Trustee, forthwith upon any Officer of the
         Company becoming aware of any Default or Event of Default under this
         Indenture, an Officers' Certificate specifying such Default or Event of
         Default and what action the Company is taking or proposes to take with
         respect thereto.

Section 3.05 Limitation on Liens

         After the date hereof and so long as any Securities are outstanding,
the Company shall not, and shall not permit any Subsidiary of the Company to,
issue, assume or guarantee any Indebtedness secured by a mortgage, pledge, lien,
security interest or encumbrance (any mortgage, pledge, lien, security interest
or encumbrance being hereinafter in this Article referred to as a "mortgage" or
"mortgages" or as a "lien" or "liens") of, or upon any property of the Company
or of any Subsidiary of the Company, without effectively providing that the
Securities (together with, if the Company shall so determine, any other
Indebtedness of the Company ranking equally with the Securities) shall be
equally and ratably secured with such Indebtedness; provided, however, that the
foregoing restriction shall not apply to:

                  (a) any purchase money mortgage created by the Company or a
         Subsidiary of the Company to secure all or part of the purchase price
         of any property (or to secure a loan made to enable the Company or a
         Subsidiary of the Company to acquire the property described in such
         mortgage), provided that the principal amount of the Indebtedness
         secured by any such mortgage, together with all other Indebtedness
         secured by a mortgage on such property, shall not exceed the purchase
         price of the property acquired;

                  (b) any mortgage existing on any property at the time of the
         acquisition thereof by the Company or a Subsidiary of the Company
         whether or not assumed by the Company or a Subsidiary of the Company,
         and any mortgage on any property acquired or constructed by the Company
         or a Subsidiary of the Company and created not later than 12 months
         after (i) such acquisition or completion of such construction or (ii)
         commencement of full operation of such property, whichever is later;
         provided, however, that, if assumed or created by the Company or a
         Subsidiary of the Company, the principal amount of the Indebtedness
         secured by such mortgage, together with all other Indebtedness secured
         by a mortgage on such property, shall not exceed the purchase price of
         the property, acquired and/or the cost of the property constructed;

                                       16
<PAGE>

                  (c) any mortgage created or assumed by the Company or a
         Subsidiary of the Company on any contract for the sale of any product
         or service or any rights thereunder or any proceeds therefrom,
         including accounts and other receivables, related to the operation or
         use of any property acquired or constructed by the Company or a
         Subsidiary of the Company and created not later than 12 months after
         (i) such acquisition or completion of such construction or (ii)
         commencement of full operation of such property, whichever is later;

                  (d) any mortgage existing on any property of a Subsidiary of
         the Company at the time it becomes a Subsidiary of the Company and any
         mortgage on property existing at the time of acquisition thereof;

                  (e) any refunding or extension of maturity, in whole or in
         part, of any mortgage created or assumed in accordance with the
         provisions of subdivision (a), (b), (c) or (d) above or (j), (p), or
         (y) below, provided that the principal amount of the Indebtedness
         secured by such refunding mortgage or extended mortgage shall not
         exceed the principal amount of the Indebtedness secured by the mortgage
         to be refunded or extended outstanding at the time of such refunding or
         extension and that such refunding mortgage or extended mortgage shall
         be limited in lien to the same property that secured the mortgage so
         refunded or extended;

                  (f) any mortgage created or assumed by the Company or a
         Subsidiary of the Company to secure loans to the Company or a
         Subsidiary of the Company maturing within 12 months of the date of
         creation thereof and not renewable or extendible by the terms thereof
         at the option of the obligor beyond such 12 months, and made in the
         ordinary course of business;

                  (g) mechanics' or materialmen's liens or any lien or charge
         arising by reason of pledges or deposits to secure payment of workmen's
         compensation or other insurance, good faith deposits in connection with
         tenders or leases of real estate, bids or contracts (other than
         contracts for the payment of money), deposits to secure public or
         statutory obligations, deposits to secure or in lieu of surety, stay or
         appeal bonds and deposits as security for the payment of taxes or
         assessments or other similar charges;

                  (h) any mortgage 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 as a
         condition to the transaction of any business or the exercise of any
         privilege or license, or to enable the Company or a Subsidiary of the
         Company to maintain self-insurance or to participate in any fund for
         liability on any insurance risks or in connection with workmen's
         compensation, unemployment insurance, old age pensions or other social
         security or to share in the privileges or benefits required for
         companies participating in such arrangements;

                  (i) mortgages upon rights-of-way;

                  (j) undetermined mortgages and charges incidental to
         construction or maintenance;

                  (k) 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;

                  (l) the lien of taxes and assessments which are not at the
         time delinquent;

                  (m) the lien of specified taxes and assessments which are
         delinquent but the validity of which is being contested in good faith
         at the time by the Company or a Subsidiary of the Company;

                                       17
<PAGE>

                  (n) the lien reserved in leases for rent and for compliance
         with the terms of the lease in the case of leasehold estates;

                  (o) defects and irregularities in the titles to any property
         (including rights-of-way and easements) which are not material to the
         business of the Company and its Subsidiaries considered as a whole;

                  (p) any mortgages securing Indebtedness neither assumed nor
         guaranteed by the Company or a Subsidiary of the Company nor on which
         it customarily pays interest, existing upon real estate or rights in or
         relating to real estate (including rights-of-way and easements)
         acquired by the Company or a Subsidiary of the Company, which mortgages
         do not materially impair the use of such property for the purposes for
         which it is held by the Company or such Subsidiary of the Company;

                  (q) easements, exceptions or reservations in any property of
         the Company or a Subsidiary of the Company granted or reserved for the
         purpose of pipelines, roads, telecommunication equipment and cable,
         streets, alleys, highways, railroad purposes, 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, which
         do not materially impair the use of such property for the purposes for
         which it is held by the Company or such Subsidiary of the Company;

                  (r) rights reserved to or vested in any municipality or public
         authority to control or regulate any property of the Company or a
         Subsidiary of the Company, 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 of the Company;

                  (s) any obligations or duties, affecting the property of the
         Company or a Subsidiary of the Company, to any municipality or public
         authority with respect to any franchise, grant, license or permit;

                  (t) the liens of any judgments in an aggregate amount not in
         excess of $2,000,000 or the lien of any judgment the execution of which
         has been stayed or which has been appealed and secured, if necessary,
         by the filing of an appeal bond;

                  (u) zoning laws and ordinances;

                  (v) any mortgage existing on any office equipment, data
         processing equipment (including computer and computer peripheral
         equipment) or transportation equipment (including motor vehicles,
         aircraft and marine vessels);

                  (w) leases now or hereafter existing and any renewals or
         extensions thereof;

                  (x) any lien on inventory and receivables incurred in the
         ordinary course of business to secure Indebtedness incurred for working
         capital purposes including liens incurred in connection with a sale of
         receivables; and

                  (y) any mortgage not permitted by clauses (a) through (y)
         above if at the time of, and after giving effect to, the creation or
         assumption of any such mortgage, the aggregate of all Indebtedness of
         the Company and its Subsidiaries secured by all such mortgages not so
         permitted by clauses (a) through (x) above do not exceed 5% of
         Consolidated Net Tangible Assets.

         In the event that the Company or a Subsidiary of the Company shall
hereafter secure the Securities equally and ratably with any other obligation or
Indebtedness pursuant to the provisions of this Section 3.5, the Trustee is
hereby authorized at the written discretion of the Company to enter into an

                                       18
<PAGE>

indenture supplemental hereto and to take such action, if any, as necessary to
enable it to enforce the rights of the Holders of the Securities so secured,
equally and ratably with such other obligation or Indebtedness.

         The Trustee, at its request, may require and be provided with an
Opinion of Counsel as conclusive evidence that any such supplemental indenture
or steps taken to secure the Securities equally and ratably comply with the
provisions of this Section 3.5.

Section 3.06 Limitation on Sale and Lease-Back Transactions

         The Company shall not, and shall not permit any Subsidiary of the
Company to, enter into any arrangement with any Person providing for the leasing
by the Company or a Subsidiary of the Company of any Principal Property,
acquired or placed into service more than 180 days prior to such arrangement
(except for leases of three years or less), whereby such property has been or is
to be sold or transferred by the Company or any Subsidiary of the Company to
such Person (herein referred to as a "Sale and Lease-Back Transaction"), unless:

                  (a) the Company or any Subsidiary of the Company would, at the
         time of entering into a Sale and Lease-Back Transaction, be entitled to
         incur Indebtedness secured by a mortgage on the property to be leased
         in an amount at least equal to the Attributable Debt in respect of such
         transaction without equally and ratably securing the Securities
         pursuant to Section 3.5; or

                  (b) the Company shall covenant that it will apply an amount
         equal to the net proceeds from the sale of the Principal Property so
         leased to the retirement (other than any mandatory retirement) of its
         Funded Indebtedness within 90 days of the effective date of any such
         Sale and Lease-Back Transaction, provided that the amount to be applied
         to the retirement of Funded Indebtedness of the Company shall be
         reduced by (i) the principal amount of any Securities delivered by the
         Company to the Trustee within 90 days after such Sale and Lease-Back
         Transaction for retirement and cancellation, and (ii) the principal
         amount of Funded Indebtedness, other than Securities, voluntarily
         retired by the Company within 90 days following such Sale and
         Lease-Back Transaction, provided, further, the covenant contained in
         this Section 3.6 shall not apply to, and there shall be excluded from
         Attributable Debt in any computation under this Section 3.6,
         Attributable Debt with respect to any Sale and Lease-Back Transaction
         if:

                  (1) such Sale and Lease-Back Transaction is entered into in
         connection with transactions which are part of an industrial
         development or pollution control financing or,

                  (2) the only parties involved in such Sale and Lease-Back
         Transaction are the Company and/or any of its Subsidiaries.

         Notwithstanding the foregoing, the Company and its Subsidiaries may
enter into, create, assume and suffer to exist Sale and Lease-Back Transactions,
not otherwise permitted hereby, if at the time of, and after giving effect to,
such Sale and Lease-Back Transaction, the total consolidated Attributable Debt
of the Company and its Subsidiaries does not exceed 5% of Consolidated Net
Tangible Assets.

                                   ARTICLE IV

                         CONSOLIDATION, MERGER AND SALE

Section 4.01 Limitation on Mergers and Consolidations

         The Company shall not consolidate with or merge into any other entity
or convey, transfer or lease its properties and assets substantially as an
entirety to any Person, unless (a) the corporation, limited liability company,
limited partnership, joint stock company, or trust formed by such consolidation
or into which the Company is merged or the Person which acquires by conveyance,
transfer or lease the

                                       19
<PAGE>

properties and assets of the Company substantially as an entirety shall
expressly assume, by a supplemental indenture hereto, executed and delivered to
the Trustee, in form reasonably satisfactory to the Trustee, the due and
punctual payment of the principal of and interest on all the Securities, and the
performance of every covenant of this Indenture on the part of the Company to be
performed or observed, (b) immediately after giving effect to such transaction,
no Default or Event of Default, shall have happened and be continuing, and (c)
the Company has delivered to the Trustee an Officers' Certificate and an Opinion
of Counsel each stating that such consolidation, merger, conveyance, transfer or
lease and such supplemental indenture comply with this Article and that all
conditions precedent herein provided for relating to such transaction have been
complied with.

Section 4.02 Successors Substituted

         In case of any such consolidation, merger, sale, lease or conveyance,
and following such an assumption by the successor Person, such successor Person
shall succeed to and be substituted for the Company, with the same effect as if
it had been named herein. Such successor Person may cause to be signed, and may
issue either in its own name or in the name of the Company prior to such
succession any or all of the Securities issuable hereunder which theretofore
shall not have been signed by the Company and delivered to the Trustee; and,
upon the order of such successor Person, instead of the Company, and subject to
all the terms, conditions and limitations in this Indenture prescribed, the
Trustee shall authenticate and shall deliver any Securities which previously
shall have been signed and delivered by the officers of the Company to the
Trustee for authentication, and any Securities which such successor Person
thereafter shall cause to be signed and delivered to the Trustee for that
purpose. All of the Securities so issued shall in all respects have the same
legal rank and benefit under this Indenture as the Securities theretofore or
thereafter issued in accordance with the terms of this Indenture as though all
of such Securities had been issued at the date of the execution hereof.

         In case of any such consolidation, merger, sale, lease or conveyance
such changes in phrasing and form (but not in substance) may be made in the
Securities thereafter to be issued as may be appropriate. In the event of any
such sale or conveyance (other than a conveyance by way of lease) the Company or
any successor Person which shall theretofore have become such in the manner
described in this Article shall be discharged from all obligations and covenants
under this Indenture, and the Securities and may be liquidated and dissolved.

                                   ARTICLE V

                              DEFAULTS AND REMEDIES

Section 5.01 Events of Default

         "Event of Default," means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

                  (1) default in the payment of any interest (or Liquidated
         Damages, if any) upon any Security when it becomes due and payable, and
         continuance of such default for a period of 30 days; or

                  (2) default in the payment of the principal of (or premium, if
         any, on) any Security at its Maturity; or

                  (3) default in the performance, or breach, of any covenant or
         warranty of the Company in this Indenture (other than a covenant or
         warranty a default in whose performance or whose breach is elsewhere in
         this Section specifically dealt with), and continuance of such default
         or breach for

                                       20
<PAGE>

         a period of 90 days after there has been given, by registered or
         certified mail, to the Company by the Trustee or to the Company and the
         Trustee by the Holders of at least 25% in principal amount of the
         outstanding Securities a written notice specifying such default or
         breach and requiring it to be remedied and stating that such notice is
         a "Notice of Default" hereunder; provided, however, that the occurrence
         of any of the events described in this clause (3) shall not constitute
         an Event of Default if such occurrence is the result of changes in
         generally accepted accounting principles as recognized by the American
         Institute of Certified Public Accountants at the date as of which this
         Indenture is executed and a certificate to such effect is delivered to
         the Trustee by the Company's independent public accountants; or

                  (4) the entry by a court having jurisdiction in the premises
         of (A) a decree or order for relief in respect of the Company in an
         involuntary case or proceeding under any applicable Federal or State
         bankruptcy, insolvency, reorganization or other similar law or (B) a
         decree or order adjudging the Company a bankrupt or insolvent, or
         approving as properly filed a petition seeking reorganization,
         arrangement, adjustment or composition of or in respect of the Company
         under any applicable Federal or State law, or appointing a custodian,
         receiver, liquidator, assignee, trustee, sequestrator or other similar
         official of the Company or of any substantial part of the property of
         the Company, or ordering the winding up or liquidation of the affairs
         of the Company, and the continuance of any such decree or order for
         relief or any such other decree or order unstayed and in effect for a
         period of 90 consecutive days; or

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

         The Trustee shall not be deemed to know of a Default or Event of
Default unless a Responsible Officer at the Corporate Trust Office of the
Trustee has actual knowledge of such Default or Event of Default or the Trustee
receives written notice at the Corporate Trust Office of the Trustee of such
Default or Event of Default with specific reference to such Default.

         When a Default is cured, or when an Event of Default is deemed cured
pursuant to Section 5.04, such Default, or Event of Default, as the case may be,
ceases.

Section 5.02 Acceleration

         If an Event of Default (other than an Event of Default specified in
clause (5) or (6) of Section 5.01 hereof with respect to the Company) occurs and
is continuing, the Trustee by notice to the Company, or the Holders of at least
25% in principal amount of the then outstanding Securities by notice to the
Company and the Trustee, may declare the principal of and premium, if any, and
accrued and unpaid interest and Liquidated Damages, if any, on all then
outstanding Securities to be due and payable immediately. Upon any such
declaration the amounts due and payable on the Securities, as determined in
accordance with the next succeeding paragraph, shall be due and payable
immediately. If an Event of Default specified in clause (5) or (6) of Section
5.01 hereof with respect to the Company occurs, the principal of and premium, if
any, and accrued and unpaid interest and Liquidated Damages, if any, on all

                                       21
<PAGE>

Securities then outstanding shall ipso facto become and be immediately due and
payable without any declaration, notice or other act on the part of the Trustee
or any Holder.

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

                  (1) the Company has paid or deposited with the Trustee a sum
         sufficient to pay:

                           (A) all overdue interest on all Securities,

                           (B) the principal of (and premium, if any, on) any
                  Securities which have become due otherwise than by such
                  declaration of acceleration and Liquidated Damages, if any,
                  and any interest thereon at the rate or rates prescribed
                  therefor in such Securities or in this Indenture,

                           (C) to the extent that payment of such interest is
                  lawful, interest upon overdue interest and overdue Liquidated
                  Damages, if any, at the rate or rates prescribed therefor in
                  the Securities or in this Indenture, and

                           (D) all sums paid or advanced by the Trustee
                  hereunder and the reasonable compensation, expenses,
                  disbursements and advances of the Trustee, its agents and
                  counsel;

         and

                  (2) all Events of Default, other than the non-payment of the
         principal of Securities which have become due solely by such
         declaration of acceleration, have been cured or waived as provided in
         Section 5.04.

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

         If the maturity of the Securities is accelerated pursuant to this
Section 5.02, 100% of the principal amount thereof shall become due and payable
plus premium, if any, and accrued interest and Liquidated Damages, if any, to
the date of payment.

Section 5.03 Other Remedies

         If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy to collect the payment of principal of, or premium, if any,
Liquidated Damages, if any, or interest on the Securities or to enforce the
performance of any provision of the Securities, this Indenture or any
Registration Rights Agreement.

         The Trustee may maintain a proceeding even if it does not possess any
of the Securities or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder in exercising any right or remedy accruing
upon an Event of Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default. All remedies are cumulative
to the extent permitted by law.

Section 5.04 Waiver of Existing Defaults

         Subject to Sections 5.07 and 8.02 hereof, the Holders of a majority in
principal amount of the outstanding Securities by notice to the Trustee may
waive an existing Default or Event of Default and its

                                       22
<PAGE>

consequences (including waivers obtained in connection with a tender offer or
exchange offer for the Securities or a solicitation of consents in respect of
the Securities, provided that in each case such offer or solicitation is made to
all Holders of the Securities then outstanding on equal terms), except (1) a
continuing Default or Event of Default in the payment of the principal of, or
premium, if any, or interest on the Securities or (2) a continuing Default in
respect of a provision that under Section 8.02 hereof cannot be amended without
the consent of each Holder affected. Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereon.

Section 5.05 Control by Majority

         The Holders of a majority in principal amount of the Securities then
outstanding may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power
conferred on it hereunder. However, the Trustee may refuse to follow any
direction that conflicts with applicable law or this Indenture, that the Trustee
determines may be unduly prejudicial to the rights of other Holders, or that may
involve the Trustee in personal liability; provided, however, that the Trustee
may take any other action deemed proper by the Trustee that is not inconsistent
with such direction. Prior to taking any action hereunder, the Trustee shall be
entitled to indemnification satisfactory to it in its sole discretion against
all losses and expenses caused by taking or not taking such action.

Section 5.06 Limitations on Suits

         Subject to Section 5.07 hereof, a Holder may pursue a remedy with
respect to this Indenture or the Securities only if:

                  (1) such Holder gives to the Trustee written notice of a
         continuing Event of Default;

                  (2) the Holders of at least 25% in principal amount of the
         Securities then outstanding make a written request to the Trustee to
         pursue the remedy;

                  (3) such Holder or Holders offer to the Trustee indemnity
         satisfactory to the Trustee against any loss, liability or expense;

                  (4) the Trustee does not comply with the request within 60
         days after receipt of the request and the offer of indemnity; and

                  (5) during such 60-day period the Holders of a majority in
         principal amount of the Securities do not give the Trustee a direction
         inconsistent with the request.

         A Holder may not use this Indenture to prejudice the rights of another
Holder or to obtain a preference or priority over another Holder.

Section 5.07 Rights of Holders to Receive Payment

         Notwithstanding any other provision of this Indenture, the right of any
Holder of a Security to receive payment of principal of, and premium, if any,
and interest on the Security, on or after the respective due dates expressed in
the Security, or to bring suit for the enforcement of any such payment on or
after such respective dates, is absolute and unconditional and shall not be
impaired or affected without the consent of such Holder.

                                       23
<PAGE>

Section 5.08 Collection Suit by Trustee

         If an Event of Default specified in clause (1) or (2) of Section 5.01
hereof occurs and is continuing, the Trustee is authorized to recover judgment
in its own name and as trustee of an express trust against the Company for the
amount of principal and premium, if any, and interest (and Liquidated Damages,
if any) remaining unpaid on the Securities, and interest on overdue principal,
premium, if any, and Liquidated Damages, if any and, to the extent lawful,
interest on overdue interest (and Liquidated Damages, if any), and such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel.

Section 5.09 Trustee May File Proofs of Claim

         The Trustee is authorized to file such proofs of claim and other papers
or documents and to take such actions, including participating as a member,
voting or otherwise, of any committee of creditors, as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company or its creditors or properties and shall be
entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any Custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments to
the Trustee, and in the event that the Trustee shall consent to the making of
such payments directly to the Holders, to pay to the Trustee any amount due to
it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.07 hereof. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 6.07 hereof out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall
be secured by a lien on, and shall be paid out of, any and all distributions,
dividends, money, securities and other properties which the Holders may be
entitled to receive in such proceeding whether in liquidation or under any plan
of reorganization or arrangement or otherwise. Nothing herein contained shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

Section 5.10 Priorities

         If the Trustee collects any money pursuant to this Article, it shall
pay out the money in the following order:

         First:  to the Trustee for amounts due under Section 6.07 hereof;

         Second: to Holders for amounts due and unpaid on the Securities for
principal, premium, if any, Liquidated Damages, if any, and interest ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Securities for principal, premium, if any, Liquidated Damages, if
any, and interest, respectively; and

         Third: to the Company.

         The Trustee, upon prior written notice to the Company, may fix a record
date and payment date for any payment to Holders pursuant to this Article.

Section 5.11 Undertaking for Costs

         In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as a trustee, a court in its discretion may require the filing

                                       24
<PAGE>

by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including
reasonable attorneys' fees and expenses, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made by
the party litigant. This Section does not apply to a suit by the Trustee, a suit
by a Holder pursuant to Section 5.07 hereof, or a suit by a Holder or Holders of
more than 10% in principal amount of the Securities then outstanding.

                                   ARTICLE VI

                                     TRUSTEE

Section 6.01 Duties of Trustee

                  (a) If an Event of Default has occurred and is continuing, the
         Trustee shall exercise such of the rights and powers vested in it by
         this Indenture, and use the same degree of care and skill in such
         exercise, as a prudent man would exercise or use under the
         circumstances in the conduct of his own affairs.

                  (b) Except during the continuance of an Event of Default:

                  (1) the Trustee need perform only those duties that are
         specifically set forth in this Indenture and no others, and no implied
         covenants or obligations shall be read into this Indenture against the
         Trustee; and

                  (2) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, with respect to certificates or opinions
         specifically required by any provision hereof to be furnished to it,
         the Trustee shall examine such certificates and opinions to determine
         whether or not, on their face, they appear to conform substantially to
         the requirements of this Indenture.

                  (c) The Trustee may not be relieved from liabilities for its
         own negligent action, its own negligent failure to act, or its own
         willful misconduct, except that:

                  (1) this paragraph does not limit the effect of paragraph (b)
         of this Section;

                  (2) the Trustee shall not be liable for any error of judgment
         made in good faith by a Responsible Officer, unless it is proved that
         the Trustee was negligent in ascertaining the pertinent facts; and

                  (3) the Trustee shall not be liable with respect to any action
         it takes or omits to take in good faith in accordance with a direction
         received by it pursuant to Section 5.05 hereof.

                  (d) Whether or not therein expressly so provided, every
         provision of this Indenture that in any way relates to the Trustee is
         subject to paragraphs (a), (b) and (c) of this Section.

                  (e) No provision of this Indenture shall require the Trustee
         to expend or risk its own funds or incur any liability.

                  (f) The Trustee shall not be liable for interest on any money
         received by it except as the Trustee may agree in writing with the
         Company. Money held in trust by the Trustee need not be segregated from
         other funds except to the extent required by law. All money received by
         the Trustee shall, until applied as herein provided, be held in trust
         for the payment of the principal of, and premium if any, and interest
         on the Securities.

                                       25
<PAGE>

Section 6.02 Rights of Trustee

                  (a) The Trustee may rely conclusively on any document (whether
         in its original or facsimile form) believed by it to be genuine and to
         have been signed or presented by the proper Person. The Trustee need
         not investigate any fact or matter stated in the document.

                  (b) Before the Trustee acts or refrains from acting, it may
         require an Officers' Certificate or an Opinion of Counsel or both. The
         Trustee shall not be liable for any action it takes or omits to take in
         good faith in reliance on such Officers' Certificate or Opinion of
         Counsel. The Trustee may consult with counsel of its own selection and
         the advice of such counsel or any Opinion of Counsel shall be full and
         complete authorization and protection in respect of any action taken,
         suffered or omitted by it hereunder in good faith and in reliance
         thereon.

                  (c) The Trustee may act through agents or attorneys and shall
         not be responsible for the misconduct or negligence of any agent or
         attorney appointed with due care.

                  (d) The Trustee shall not be liable for any action it takes or
         omits to take in good faith which it believes to be authorized or
         within its rights or powers conferred upon it by this Indenture.

                  (e) Unless otherwise specifically provided in this Indenture,
         any demand, request, direction or notice from the Company shall be
         sufficient if signed by an Officer of the Company.

                  (f) The Trustee is not required to give any bond or surety
         with respect to the performance of its duties or the exercise of its
         powers under this Indenture.

                  (g) The Trustee's immunities and protections from liability
         and its right to indemnification in connection with the performance of
         its duties under this Indenture shall extend and be enforceable by the
         Trustee in each of its capacities hereunder and shall extend to the
         Trustee's officers, directors, agents, attorneys and employees. Such
         immunities and protections and right to indemnity, together with the
         Trustee's right to compensation, shall survive the Trustee's
         resignation or removal, the discharge of this Indenture and final
         payment of the Securities.

                  (h) The permissive right of the Trustee to take the actions
         permitted by this Indenture shall not be construed as an obligation or
         duty to do so.

                  (i) Except for information provided by the Trustee concerning
         the Trustee, the Trustee shall have no responsibility for any
         information in any offering memorandum or other disclosure material
         distributed with respect to the Securities, and the Trustee shall have
         no responsibility for compliance with any state or federal securities
         laws in connection with the Securities.

                  (j) The Trustee may request that the Company deliver an
         Officers' Certificate setting forth the names of individuals and/or
         titles of officers authorized at such time to take specified actions
         pursuant to this Indenture, which Officers' Certificate may be signed
         by any person authorized to sign an Officers' Certificate, including
         any person specified as so authorized in any such certificate
         previously delivered and not superseded.

                  (k) The Trustee shall be under no obligation to exercise any
         of the rights or powers vested in it by this Indenture at the request
         or direction of any of the Holders pursuant to this Indenture, unless
         such Holders shall have offered to the Trustee security or indemnity
         satisfactory to the Trustee against the costs, expenses and liabilities
         which might be incurred by it in compliance with such request or
         direction.

                                       26
<PAGE>

                  (l) The Trustee shall not be liable for any error of judgment
         made in good faith by a Responsible Officer, unless it shall be proved
         that the Trustee was negligent in ascertaining the pertinent facts.

Section 6.03 Individual Rights of Trustee

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or any of
its Affiliates with the same rights it would have if it were not Trustee. Any
Agent may do the same with like rights. However, the Trustee is subject to
Sections 6.10 and 6.11 hereof.

Section 6.04 Trustee's Disclaimer

         The Trustee makes no representation as to the validity or adequacy of
this Indenture or the Securities, it shall not be accountable for the Company's
use of the proceeds from the Securities or any money paid to the Company or upon
the Company's direction under any provision hereof, it shall not be responsible
for the use or application of any money received by any Paying Agent other than
the Trustee and it shall not be responsible for any statement or recital herein
or any statement in the Securities other than its certificate of authentication.

Section 6.05 Notice of Defaults

         If a Default or Event of Default occurs and is continuing and it is
actually known to a Responsible Officer of the Trustee, the Trustee shall mail
to Holders a notice of the Default or Event of Default within 90 days after it
occurs. Except in the case of a Default or Event of Default in payment of
principal of, or premium, if any, Liquidated Damages, if any, or interest on any
Security, the Trustee may withhold the notice if and so long as a committee of
its Responsible Officers in good faith determines that withholding the notice is
in the interests of Holders.

Section 6.06 Reports by Trustee to Holders

         On or before July 15 of each year, beginning with July 15, 2003, the
Trustee shall mail to Holders a brief report dated as of a date convenient to
the Trustee no more than 60 nor less than 45 days prior thereto, that complies
with TIA Section 313(a); provided, however, that if no event described in TIA
Section 313(a) has occurred within the twelve months preceding the reporting
date, no report need be transmitted. The Trustee also shall comply with TIA
Section 313(b). The Trustee shall also transmit by mail all reports as required
by TIA Sections 313(c) and 313(d).

         A copy of each report at the time of its mailing to Holders shall be
filed with the SEC and each securities exchange, if any, on which the Securities
are listed. The Company shall notify the Trustee if and when the Securities are
listed on any stock exchange or delisted therefrom.

Section 6.07 Compensation and Indemnity

         The Company agrees to pay to the Trustee from time to time such
compensation as agreed to by the Company and the Trustee, for its acceptance of
this Indenture and its services hereunder. The Trustee's compensation shall not
be limited by any law on compensation of a trustee of an express trust. The
Company agrees to reimburse the Trustee upon request for all reasonable
disbursements, advances and expenses incurred by it. Such expenses shall include
the reasonable compensation, disbursements and expenses of the Trustee's agents
and counsel.

         The Company agrees to fully indemnify the Trustee or any predecessor
Trustee and their agents for and to hold them harmless against any and all loss,
liability damage, claims, or expense (including taxes, other than taxes based
upon, measured by or determined by the income of the Trustee) incurred by it
arising out of or in connection with the acceptance or administration of its
duties under this Indenture,

                                       27
<PAGE>

including the costs and expenses of defending itself against any claim (whether
asserted by the Company, any Holder or any other Person), except as set forth
in the next paragraph. The Trustee shall notify the Company promptly of any
claim for which it may seek indemnity. The Company shall defend the claim and
the Trustee shall cooperate in the defense. The Trustee may have separate
counsel, and the Company shall pay the reasonable fees and expenses of such
counsel. The Company need not pay for any settlement made without its consent,
which consent shall not be unreasonably withheld.

         The Company shall not be obligated to reimburse any expense or
indemnify against any loss or liability incurred by the Trustee through its own
negligence or bad faith.

         To secure the payment obligations of the Company in this Section 6.07,
the Trustee shall have a lien prior to the Securities on all money or property
held or collected by the Trustee, except that held in trust to pay principal of,
and premium, if any, and interest and Liquidated Damages, if any, on the
Securities. Such lien shall survive the satisfaction and discharge of this
Indenture.

         When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 5.01(5) or (6) hereof occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

Section 6.08 Replacement of Trustee

         A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section 6.08.

         The Trustee may resign and be discharged from the trust hereby created
by so notifying the Company. The Holders of a majority in principal amount of
the then outstanding Securities may remove the Trustee by so notifying the
Trustee and the Company. The Company may remove the Trustee if:

                  (1) the Trustee fails to comply with Section 6.10 hereof;

                  (2) the Trustee is adjudged a bankrupt or an insolvent or an
         order for relief is entered with respect to the Trustee under any
         Bankruptcy Law;

                  (3) a Custodian or public officer takes charge of the Trustee
         or its property; or

                  (4) the Trustee otherwise becomes incapable of acting.

         If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the Securities then outstanding may appoint
a successor Trustee to replace the successor Trustee appointed by the Company.

         If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company or the
Holders of at least 10% in principal amount of the Securities then outstanding
may petition (at the expense of the Company) any court of competent jurisdiction
at the expense of the Company for the appointment of a successor Trustee.

         If the Trustee fails to comply with Section 6.10 hereof, any Holder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

         A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee shall promptly transfer all property
held by it as Trustee to the successor Trustee, subject to the lien provided for
in

                                       28
<PAGE>

Section 6.07 hereof. Notwithstanding replacement of the Trustee pursuant to this
Section 6.08 hereof, the obligations of the Company under Section 6.07 hereof
shall continue for the benefit of the retiring Trustee.

Section 6.09 Successor Trustee by Merger, etc

         Subject to Section 6.10 hereof, if the Trustee consolidates, merges or
converts into, or transfers all or substantially all of its corporate trust
business to, another corporation, the successor corporation without any further
act shall be the successor Trustee; provided, however, that in the case of a
transfer of all or substantially all of its corporate trust business to another
corporation, the transferee corporation expressly assumes all of the Trustee's
liabilities hereunder.

         In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated; and in case at that time any of the
Securities shall not have been authenticated, any successor to the Trustee may
authenticate such Securities either in the name of any predecessor hereunder or
in the name of the successor to the Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Securities or
in this Indenture provided that the certificate of the Trustee shall have.

Section 6.10 Eligibility; Disqualification

         There shall at all times be a Trustee hereunder which shall be a
corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia and authorized under such
laws to exercise corporate trust power, shall be subject to supervision or
examination by Federal or State (or the District of Columbia) authority and
shall have, or be a Subsidiary of a bank or bank holding company having, a
combined capital and surplus of at least $50 million as set forth in its most
recent published annual report of condition.

         This Indenture shall always have a Trustee who satisfies the
requirements of TIA Sections 310(a)(1), 310(a)(2) and 310(a)(5). The Trustee is
subject to and shall comply with the provisions of TIA Section 310(b) during the
period of time required by this Indenture. Nothing in this Indenture shall
prevent the Trustee from filing with the SEC the application referred to in the
penultimate paragraph of TIA Section 310(b).

Section 6.11 Preferential Collection of Claims Against Company

         The Trustee is subject to and shall comply with the provisions of TIA
Section 311(a), excluding any creditor relationship listed in TIA Section
311(b). A Trustee who has resigned or been removed shall be subject to TIA
Section 311(a) to the extent indicated therein.

                                  ARTICLE VII

                             DISCHARGE OF INDENTURE

Section 7.01 Termination of Company's Obligations

                  (a) This Indenture shall cease to be of further effect (except
         that the Company's obligations under Section 6.07 hereof and the
         Trustee's and Paying Agent's obligations under Section 7.03 hereof
         shall survive), and the Trustee, on demand of the Company, shall
         execute proper instruments acknowledging the satisfaction and discharge
         of this Indenture and the Securities, when:

                  (1) either

                                       29
<PAGE>

         (A) all outstanding Securities theretofore authenticated and issued
(other than destroyed, lost or stolen Securities that have been replaced or
paid) have been delivered to the Trustee for cancellation; or

         (B) all outstanding Securities not theretofore delivered to the Trustee
for cancellation:

                  (i) have become due and payable, or

                  (ii) will become due and payable at their Stated Maturity
         within one year,

and the Company, in the case of clause (i) or (ii) above, has deposited or
caused to be deposited with the Trustee as funds (immediately available to the
Holders in the case of clause (i)) in trust for such purpose an amount which,
together with earnings thereon, will be sufficient to pay and discharge the
entire indebtedness on the Securities for principal, premium, if any, Liquidated
Damages, if any, and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the Stated Maturity, as the
case may be;

                  (2) the Company has paid all other sums payable by it
         hereunder; and

                  (3) the Company has delivered to the Trustee an Officers'
         Certificate stating that all conditions precedent to satisfaction and
         discharge of this Indenture have been complied with, together with an
         Opinion of Counsel to the same effect.

                  (b) The Company may, subject as provided herein, terminate all
         of its obligations under this Indenture with respect to Securities if:

                  (1) the Company has irrevocably deposited or caused to be
         irrevocably deposited with the Trustee as trust funds in trust for the
         purpose of making the following payments dedicated solely to the
         benefit of the Holders (i) cash in an amount, or (ii) U.S. Government
         Obligations or (iii) a combination thereof, sufficient, in the opinion
         of a nationally recognized firm of independent public accountants
         expressed in a written certification thereof delivered to the Trustee,
         to pay, without consideration of the reinvestment of any such amounts
         and after payment of all taxes or other charges or assessments in
         respect thereof payable by the Trustee, the principal of, and premium,
         if any, Liquidated Damages, if any, and interest on all Securities on
         each date that such principal, premium, if any, Liquidated Damages, if
         any, or interest is due and payable and to pay all other sums payable
         by it hereunder; provided that the Trustee shall have been irrevocably
         instructed to apply such money and/or the proceeds of such U.S.
         Government Obligations to the payment of said principal, premium, if
         any, Liquidated Damages, if any, and interest with respect to the
         Securities as the same shall become due;

                  (2) the Company has delivered to the Trustee an Officers'
         Certificate stating that all conditions precedent to satisfaction and
         discharge of this Indenture with respect to the Securities have been
         complied with, and an Opinion of Counsel to the same effect;

                  (3) no Default or Event of Default shall have occurred and be
         continuing on the date of such deposit or, insofar as clauses (5) and
         (6) of Section 5.01 hereof are concerned, at any time during the period
         ending on the 91st day after the date of such deposit (it being
         understood that this condition shall not be deemed satisfied until the
         expiration of such period);

                  (4) the Company shall have delivered to the Trustee an Opinion
         of Counsel from a nationally recognized counsel acceptable to the
         Trustee or a tax ruling to the effect that the Holders of the
         Securities will not recognize income, gain or loss for Federal income
         tax purposes as a result of the Company's exercise of its option under
         this Section 7.01(b) and will be subject to Federal income tax on the
         same amount and in the same manner and at the same times as would have
         been the case if such option had not been exercised;

                                       30
<PAGE>

                  (5) such deposit and discharge will not result in a breach or
         violation of, or constitute a default under, any other agreement or
         instrument to which the Company is a party or by which it is bound;

                  (6) such deposit and discharge shall not cause the Trustee to
         have a conflicting interest as defined in TIA Section 310(b); and

                  (7) the Company shall have delivered to the Trustee an Opinion
         of Counsel to the effect that after the passage of 91 days following
         the deposit, the trust funds will not be subject to the effect of any
         applicable bankruptcy, insolvency, reorganization or similar laws
         affecting creditors' rights generally.

         In such event, this Indenture shall cease to be of further effect
(except as provided in the next succeeding paragraph), and the Trustee, on
demand of the Company, shall execute proper instruments acknowledging
satisfaction and discharge under this Indenture.

         However, the Company's obligations in Sections 2.03, 2.04, 2.05, 2.06,
2.07, 2.08, 3.01, 3.02, 3.03, 4.01, 6.07, 6.08, 7.01 and 7.04 hereof, the
Company's obligations in Sections 4.01, 6.07, 7.04 and 9.01 hereof and the
Trustee's and Paying Agent's obligations in Section 7.03 hereof shall survive
until the Securities are no longer outstanding. Thereafter, only the Company's
obligations in Section 6.07 hereof and the Trustee's and Paying Agent's
obligations in Section 7.03 hereof shall survive such satisfaction and
discharge.

         After such irrevocable deposit made pursuant to this Section 7.01(b)
and satisfaction of the other conditions set forth herein, the Trustee upon
request shall acknowledge in writing the discharge of the Company's obligations
under this Indenture except for those surviving obligations specified above.

         In order to have money available on a payment date to pay principal of,
premium, if any, Liquidated Damages, if any, or interest on the Securities, the
U.S. Government Obligations shall be payable as to principal or interest on or
before such payment date in such amounts as will provide the necessary money.
U.S. Government Obligations shall not be callable at the issuer's option.

Section 7.02 Application of Trust Money

         The Trustee or a trustee satisfactory to the Trustee and the Company
shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to Section 7.01 hereof. It shall apply the deposited money and the
money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of, premium, if any,
Liquidated Damages, if any, and interest on the Securities.

Section 7.03 Repayment to Company

         The Trustee and the Paying Agent shall promptly pay to the Company upon
written request any excess money or securities held by them at any time.

         Subject to the requirements of any applicable abandoned property laws,
the Trustee and the Paying Agent shall pay to the Company upon written request
any money held by them for the payment of principal, premium, if any, Liquidated
Damages, if any, or interest that remains unclaimed for two years after the date
upon which such payment shall have become due; provided, however, that the
Company shall have either caused notice of such payment to be mailed to each
Holder entitled thereto no less than 30 days prior to such repayment or within
such period shall have published such notice in a financial newspaper of
widespread circulation published in The City of New York. After payment to the
Company, Holders entitled to the money must look to the Company for payment as
general creditors unless an applicable abandoned property law designates another
Person, and all liability of the Trustee and the Paying Agent with respect to
such money shall cease.

                                       31
<PAGE>

Section 7.04 Reinstatement

         If the Trustee or the Paying Agent is unable to apply any money or U.
S. Government Obligations in accordance with Section 7.01 hereof by reason of
any legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the obligations of the Company under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Section 7.01 hereof until such time as the Trustee or the Paying
Agent is permitted to apply all such money or U. S. Government Obligations in
accordance with Section 7.01 hereof; provided, however, that if the Company has
made any payment of principal of or interest on any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money or U.S.
Government Obligations held by the Trustee or the Paying Agent.

                                  ARTICLE VIII

                                   AMENDMENTS

Section 8.01 Without Consent of Holders

         The Company and the Trustee may amend or supplement this Indenture or
any of the Securities or waive any provision hereof or thereof without the
consent of any Holder:

                  (1) to cure any ambiguity, omission, defect or inconsistency;

                  (2) to comply with Sections 4.01 and 4.02 hereof;

                  (3) to provide for uncertificated Securities in addition to or
         in place of certificated Securities;

                  (4) to add any additional Events of Default;

                  (5) to add to, change or eliminate any of the provisions of
         this Indenture to such extent as shall be necessary to permit or
         facilitate the issuance of Securities in bearer form, registrable or
         not registrable as to principal, and with or without interest coupons;

                  (6) to provide for the acceptance of appointment hereunder of
         a successor trustee in compliance with the provisions hereof;

                  (7) to secure the Securities pursuant to the requirements of
         Section 3.09 or otherwise;

                  (8) to comply with any requirement in order to effect or
         maintain the qualification of this Indenture under the TIA;

                  (9) to comply with any requirements of the SEC in connection
         with qualifying this Indenture under the TIA;

                  (10) to add to the covenants of the Company for the benefit of
         the Holders or to surrender any right or power herein conferred upon
         the Company; or

                  (11) to make any change that does not adversely affect the
         rights hereunder of any Holder in any material respect.

         Upon the request of the Company accompanied by a resolution of the
Board of Directors of the Company authorizing the execution of any such
supplemental indenture, and upon receipt by the Trustee of the documents
described in Section 8.06 hereof, the Trustee shall join with the Company in the

                                       32
<PAGE>

execution of any supplemental indenture authorized or permitted by the terms of
this Indenture and make any further appropriate agreements and stipulations that
may be therein contained. After an amendment, supplement or waiver under this
Section 8.01 becomes effective, the Company shall mail to the Holders of each
Security affected thereby a notice briefly describing the amendment, supplement
or waiver. Any failure of the Company to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any
such supplemental indenture.

Section 8.02 With Consent of Holders

         Except as provided below in this Section 8.02, the Company and the
Trustee may amend or supplement this Indenture or the Securities with the
written consent (including consents obtained in connection with a tender offer
or exchange offer for the Securities or a solicitation of consents in respect of
the Securities, provided that in each case such offer or solicitation is made to
all Holders of the Securities then outstanding on equal terms) of the Holders of
at least a majority in principal amount of the Securities then outstanding.

         Upon the request of the Company accompanied by a resolution of the
Board of Directors of the Company authorizing the execution of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the
consent of the Holders as aforesaid, and upon receipt by the Trustee of the
documents described in Section 8.06 hereof, the Trustee shall join with the
Company in the execution of such supplemental indenture.

         It shall not be necessary for the consent of the Holders under this
Section 8.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.

         The Holders of a majority in principal amount of the Securities then
outstanding may waive compliance in a particular instance by the Company with
any provision of this Indenture or the Securities (including waivers obtained in
connection with a tender offer or exchange offer for the Securities or a
solicitation of consents in respect of the Securities, provided that in each
case such offer or solicitation is made to all Holders of the Securities then
outstanding on equal terms).

         Without the consent of each Holder affected, an amendment, supplement
or waiver under this Section may not:

                  (1) reduce the percentage of principal amount of the
         Securities whose Holders must consent to an amendment, supplement or
         waiver;

                  (2) reduce the rate of or change the time for payment of
         interest, including default interest, on any Security;

                  (3) reduce the principal of or change the fixed maturity of
         any Security or alter the premium or other provisions with respect to
         redemption under Section 9.07 or specified in the Securities;

                  (4) change the place of payment or make any Security payable
         in money other than that stated in the Security;

                  (5) impair the right to institute suit for the enforcement of
         any payment of principal of, or premium, if any, or interest on any
         Security pursuant to Sections 5.07 and 5.08 hereof, except as limited
         by Section 5.06 hereof;

                  (6) make any change in the percentage of principal amount of
         the Securities necessary to waive compliance with certain provisions of
         this Indenture pursuant to Section 5.04 or 5.07 hereof or this clause
         of this Section 8.02; or

                                       33
<PAGE>

                  (7) waive a continuing Default or Event of Default in the
         payment of principal of, or premium, if any, or interest on the
         Securities.

         The right of any Holder to participate in any consent required or
sought pursuant to any provision of this Indenture (and the obligation of the
Company to obtain any such consent otherwise required from such Holder) may be
subject to the requirement that such Holder shall have been the Holder of record
of the Securities with respect to which such consent is required or sought as of
a date identified by the Trustee in a notice furnished to Holders in accordance
with the terms of this Indenture.

Section 8.03 Compliance with Trust Indenture Act

         Every amendment to this Indenture or the Securities shall comply in
form and substance with the TIA as then in effect.

Section 8.04 Revocation and Effect of Consents

          A consent to an amendment (which includes a supplement) or waiver by a
Holder is a continuing consent by the Holder and every subsequent Holder of a
Security or portion of a Security that evidences the same debt as the consenting
Holder's Security, even if notation of the consent is not made on any Security.
However, any such Holder or subsequent Holder may revoke the consent as to his
or her Security or portion of a Security if the Trustee receives written notice
of revocation at any time prior to (but not after) the date the Trustee receives
an Officers' Certificate certifying that the Holders of the requisite principal
amount of Securities have consented (and not theretofore revoked such consent)
to the amendment, supplement or waiver. An amendment, supplement or waiver
becomes effective in accordance with its terms and thereafter binds every
Holder.

         The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Holders entitled to consent to any amendment or
waiver or to take any other action under this Indenture. If a record date is
fixed, then notwithstanding the provisions of the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly
designated proxies), and only those Persons, shall be entitled to consent to
such amendment, supplement or waiver or to revoke any consent previously given,
whether or not such Persons continue to be Holders after such record date. No
consent shall be valid or effective for more than 90 days after such record date
unless consents from Holders of the principal amount of the Securities required
hereunder for such amendment or waiver to be effective shall have also been
given and not revoked within such 90-day period.

         After an amendment, supplement or waiver becomes effective, it shall
bind every Holder, unless it is of the type described in any of clauses (1)
through (7) of Section 8.02 hereof. In such case, the amendment or waiver shall
bind each Holder who has consented to it and every subsequent Holder that
evidences the same debt as the consenting Holder's Security.

Section 8.05 Notation on or Exchange of Securities

         If an amendment changes the terms of a Security, the Trustee may
require the Holder of the Security to deliver it to the Trustee. The Trustee may
place an appropriate notation on the Security regarding the changed terms and
return it to the Holder. Alternatively, if the Company or the Trustee so
determines, the Company in exchange for the Security shall issue and the Trustee
shall authenticate a new Security that reflects the changed terms. Failure to
make the appropriate notation or to issue a new Security shall not affect the
validity of such amendment.

Section 8.06 Trustee to Sign Amendments, etc.

         The Trustee shall sign any amendment, waiver or supplemental indenture
authorized pursuant to this Article if the amendment, waiver or supplemental
indenture does not adversely affect the rights, duties, liabilities or
immunities of the Trustee. If it does, the Trustee may, but need not, sign it.
In

                                       34
<PAGE>

signing or refusing to sign such amendment, waiver or supplemental indenture,
the Trustee shall receive, and subject to Section 6.01 hereof, shall be fully
protected in relying upon, an Opinion of Counsel and an Officers' Certificate,
as conclusive evidence that such amendment, waiver or supplemental indenture is
authorized or permitted by this Indenture, that it is not inconsistent herewith,
and that it will be valid and binding upon the Company in accordance with its
terms.

                                   ARTICLE IX

                                   REDEMPTION

Section 9.01 Notices to Trustee

         If the Company elects to redeem Securities pursuant to the redemption
provisions of Section 9.07, it shall furnish to the Trustee, at least 45 days
but not more than 60 days before a Redemption Date (unless the Trustee consents
in writing to a shorter period of at least 30 days prior to the Redemption
Date), an Officers' Certificate setting forth the Redemption Date, the principal
amount of such Securities to be redeemed and the Redemption Price.

Section 9.02 Selection of Securities to be Redeemed

         If less than all of the Securities are to be redeemed, the Trustee
shall select the Securities to be redeemed by such method as the Trustee in its
sole discretion shall deem appropriate. The particular Securities to be redeemed
shall be selected, unless otherwise provided herein, not less than 30 days nor
more than 60 days prior to the Redemption Date by the Trustee from the
outstanding Securities not previously called for redemption.

         The Trustee shall promptly notify the Company in writing of the
Securities selected for redemption and, in the case of any Security selected for
partial redemption, the principal amount thereof to be redeemed. Securities and
portions of them selected shall be in amounts of $1,000 or whole multiples of
$1,000. Except as provided in the preceding sentence, provisions of this
Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption.

Section 9.03 Notices to Holders

                  (a) At least 30 days but not more than 60 days before a
         Redemption Date, the Company shall mail in conformity with Section
         10.02 a notice of redemption to each Holder whose Securities are to be
         redeemed.

         The Notice shall identify the Securities to be redeemed (including
CUSIP numbers, if any) and shall state:

                           (i) the Redemption Date;

                           (ii) the Redemption Price;

                           (iii) if any Security is being redeemed in part, the
                  portion of the principal amount of such Security to be
                  redeemed and that, after the Redemption Date, upon surrender
                  of such Security, a new Security or Securities in principal
                  amount equal to the unredeemed portion will be issued;

                           (iv) the name and address of the Paying Agent;

                           (v) that Securities called for redemption must be
                  surrendered to the Paying Agent at the address specified in
                  such notice to collect the Redemption Price;

                                       35
<PAGE>

                           (vi) that unless the Company defaults in making the
                  redemption payment, interest on Securities called for
                  redemption ceases to accrue on and after the Redemption Date
                  and the only remaining right of the Holders is to receive
                  payment of the Redemption Price upon surrender to the Paying
                  Agent of the Securities; and

                           (vii) the aggregate principal amount of Securities
                  being redeemed.

         If any of the Securities to be redeemed is in the form of a Global
Security, then the Company shall modify such notice to the extent necessary to
accord with the procedures of the Depositary applicable to redemptions.

                  (b) At the Company's request, the Trustee shall give the
         notice required in Section 9.03(a) in the Company's name; provided,
         however, that the Company shall deliver to the Trustee, at least 45
         days prior to the Redemption Date (unless the Trustee consents in
         writing to a shorter period at least 30 days prior to the Redemption
         Date), an Officers' Certificate requesting that the Trustee give such
         notice and setting forth the information to be stated in such notice as
         provided in Section 9.03(a).

Section 9.04 Effect of Notices of Redemption

         Once notice of redemption is mailed pursuant to Section 9.03,
Securities called for redemption become due and payable on the Redemption Date
at the Redemption Price. Upon surrender to the Paying Agent, such Securities
shall be paid out at the Redemption Price.

Section 9.05 Deposit of Redemption Price

         At or prior to 11:00 am New York City time on the Redemption Date, the
Company shall deposit with the Trustee or with the Paying Agent money sufficient
to pay the Redemption Price of all Securities to be redeemed on that date. The
Trustee or the Paying Agent shall return to the Company any money not required
for that purpose less the expenses of the Trustee as provided herein.

         If the Company complies with the preceding paragraph, interest on the
Securities or portions thereof to be redeemed (whether or not such Securities
are presented for payment) will cease to accrue on the applicable Redemption
Date. If any Security called for redemption shall not be so paid upon surrender
because of the failure of the Company to comply with the preceding paragraph,
then interest will be paid on the unpaid principal and premium, if any, from the
Redemption Date until such principal and premium are paid and, to the extent
lawful, on any interest not paid on such unpaid principal, in each case at the
rate provided in the Securities and in Section 3.01.

Section 9.06 Securities Redeemed in Part

         Upon surrender of a Security that is redeemed in part, the Company
shall issue and the Trustee shall authenticate for the Holder, at the expense of
the Company, a new Security equal in principal amount to the unredeemed portion
of the Security surrendered.

Section 9.07 Optional Redemption

         The Securities may be redeemed at any time, at the option of the
Company, in whole or from time to time in part, at the Redemption Price
specified in such Securities.

         Any redemption pursuant to this Section 9.07 shall be made, to the
extent applicable, pursuant to the provisions of Sections 9.01 through 9.06.

                                       36
<PAGE>

                                   ARTICLE X

                                  MISCELLANEOUS

Section 10.01 Trust Indenture Act Controls

         If any provision of this Indenture limits, qualifies or conflicts with
another provision which is required to be included in this Indenture by the TIA,
the required provision shall control. If this Indenture excludes any provision
of the TIA that is required to be included, such provision shall be deemed
included herein.

Section 10.02 Notices

         Any notice or communication by the Company or the Trustee to the others
is duly given if in writing and delivered in person or mailed by first-class
mail (registered or certified, return receipt requested), telecopier or
overnight air courier guaranteeing next day delivery, to the other's address:

If to the Company:

Transcontinental Gas Pipe Line Corporation
2800 Post Oak Blvd.
Houston, Texas 77056
Telecopier No.: (713) 215-2435
Attention: Treasurer

If to the Trustee:

Citibank N.A.
111 Wall Street, 14th Floor
New York, New York 10005
Telecopier No.:(212) 657-3862
Attention: Citibank Agency & Trust

         Each of the Company and the Trustee by notice to the others may
designate additional or different addresses for subsequent notices or
communications.

         All notices and communications shall be deemed to have been duly given:
at the time delivered by hand, if personally delivered; five Business Days after
being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if telecopied; and the next Business Day after timely delivery to
the courier, if sent by overnight air courier guaranteeing next day delivery.
Notwithstanding the foregoing, notices to the Trustee shall be effective only
upon receipt.

         Any notice or communication to a Holder shall be mailed by first-class
mail, postage prepaid, to the Holder's address shown on the register kept by the
Registrar. Failure to mail a notice or communication to a Holder or any defect
in it shall not affect its sufficiency with respect to other Holders.

         If a notice or communication is mailed in the manner provided above
within the time prescribed, it is duly given, whether or not the addressee
receives it.

         If the Company mails a notice or communication to Holders, it shall
mail a copy to the Trustee and each Agent at the same time.

         All notices or communications, including without limitation notices to
the Trustee or the Company by Holders, shall be in writing, except as set forth
below, and in the English language.

                                       37
<PAGE>

         In case by reason of the suspension of regular mail service, or by
reason of any other cause, it shall be impossible to mail any notice required by
this Indenture, then such method of notification as shall be made with the
approval of the Trustee shall constitute a sufficient mailing of such notice.

Section 10.03 Communication by Holders with Other Holders

         Holders may communicate pursuant to TIA Section 312(b) with other
Holders with respect to their rights under this Indenture or the Securities. The
Company, the Trustee, the Registrar and anyone else shall have the protection of
TIA Section 312(c).

Section 10.04 Certificate and Opinion as to Conditions Precedent

         Upon any request or application by the Company to the Trustee to take
any action under this Indenture, the Company shall, if requested by the Trustee,
furnish to the Trustee:

                  (1) an Officers' Certificate (which shall include the
         statements set forth in Section 10.05 hereof) stating that, in the
         opinion of the signers, all conditions precedent and covenants, if any,
         provided for in this Indenture relating to the proposed action have
         been complied with; and

                  (2) an Opinion of Counsel (which shall include the statements
         set forth in Section 10.05 hereof) stating that, in the opinion of such
         counsel, all such conditions precedent and covenants have been complied
         with.

         Notwithstanding the foregoing, no such Opinion of Counsel shall be
required in connection with the issuance of the Series A Securities pursuant to
the Original Offering.

Section 10.05 Statements Required in Certificate or Opinion

         Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

                  (1) a statement that the Person making such certificate or
         opinion has read such covenant or condition;

                  (2) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (3) a statement that, in the opinion of such Person, he has
         made such examination or investigation as is necessary to enable him to
         express an informed opinion as to whether or not such covenant or
         condition has been complied with; and

                  (4) a statement as to whether or not, in the opinion of such
         Person, such condition or covenant has been complied with.

Section 10.06 Rules by Trustee and Agents

         The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or the Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

Section 10.07 Legal Holidays

         If a payment date is a Legal Holiday at a place of payment, payment may
be made at that place on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period.

                                       38
<PAGE>

Section 10.08 No Recourse Against Others

         A director, officer, employee or stockholder of the Company as such,
shall not have any liability for any obligations of the Company under the
Securities or this Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. Each Holder by accepting a
Security waives and releases all such liability. The waiver and release shall be
part of the consideration for the issue of the Securities.

Section 10.09 Governing Law

         This Indenture and the Securities shall be governed by and constructed
in accordance with the laws of the State of New York.

Section 10.10 No Adverse Interpretation of Other Agreements

         This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company, or any other Subsidiary of the Company. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

Section 10.11 Successors

         All agreements of the Company in this Indenture and the Securities
shall bind its successors. All agreements of the Trustee in this Indenture shall
bind its successors.

Section 10.12 Severability

         In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

Section 10.13 Counterpart Originals

         The parties may sign any number of copies of this Indenture. Each
signed copy shall be an original, but all of them together represent the same
agreement.

Section 10.14 Table of Contents, Headings, etc

         The Table of Contents, Cross-Reference Table and Headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof and shall in no way
modify or restrict any of the terms or provisions hereof.

                                       39
<PAGE>

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

                                    Company:

                                    TRANSCONTINENTAL GAS PIPE LINE CORPORATION

                                    By:      /s/ Jeffrey P. Heinrichs
                                             ----------------------------------
                                             Name: Jeffrey P. Heinrichs
                                                  -----------------------------
                                             Title: Treasurer
                                                   ----------------------------

                                    Trustee:

                                    CITIBANK N.A.

                                    By:       /s/ Wafaa Orfy
                                             ----------------------------------
                                             Name: Wafaa Orfy
                                                  -----------------------------
                                             Title: Vice President
                                                   ----------------------------

                                       40
<PAGE>

                               [FACE OF SECURITY]

                           [Global Securities Legend]

         [UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. THE DEPOSITORY TRUST COMPANY SHALL ACT AS THE DEPOSITARY UNTIL A
SUCCESSOR SHALL BE APPOINTED BY THE COMPANY AND THE REGISTRAR. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]*

                     [Transfer Restricted Securities Legend]

         [THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR
THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE NEXT
SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE
HOLDER:

         (1) REPRESENTS THAT (A) IT IS A QUALIFIED INSTITUTIONAL BUYER, AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT, OR (B) IT HAS ACQUIRED THIS
SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE
SECURITIES ACT;

         (2) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS SECURITY,
EXCEPT (A) TO TRANSCONTINENTAL GAS PIPE LINE CORPORATION OR ANY OF ITS
SUBSIDIARIES, (B) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (C) IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF THE
SECURITIES ACT, (D) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER
THE SECURITIES ACT, OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND,
IN EACH OF THE CASES, IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION;

         (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY OR
AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND; AND

         (4) AGREES THAT, BEFORE THE HOLDER OFFERS, SELLS OR OTHERWISE TRANSFERS
THIS SECURITY, TRANSCONTINENTAL GAS PIPE LINE CORPORATION MAY REQUIRE THE HOLDER
OF THIS SECURITY TO DELIVER A WRITTEN OPINION, CERTIFICATIONS AND/OR OTHER
INFORMATION THAT IT REASONABLY REQUIRES TO CONFIRM THAT SUCH PROPOSED TRANSFER
IS BEING MADE PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
UNITED STATES.

         AS USED IN THIS SECURITY, THE TERMS "OFFSHORE TRANSACTION," "U.S.
PERSON" AND "UNITED STATES" HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF
REGULATION S UNDER THE SECURITIES ACT.]***

                   TRANSCONTINENTAL GAS PIPE LINE CORPORATION

                   8-7/8% Series [A/B] Note due July 15, 2012

                                                            CUSIP [          ]
                                                                   ----------
No.                                                               $
   ---                                                             ----------

         Transcontinental Gas Pipe Line Corporation, a Delaware corporation (the
"Company"), for value received promises to pay to ___________________________ or
registered assigns, the principal sum of _________ United States Dollars [or
such greater or lesser amount as is indicated on the Schedule of Exchanges of
Securities on the other side of this Security]***** on July 15, 2012.

         Interest Payment Dates:    January 15 and July 15

         Record Dates:              January 1 and July 1

---------
*This paragraph should be included only if the Security is a Global Security.

**These paragraphs should be included only if the Security is a Transfer
Restricted Security.

***This phrase should be included only if the Security is a Global Security.

                                       41
<PAGE>

         Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         IN WITNESS WHEREOF, the Company has caused this Security to be signed
manually or by facsimile by its duly authorized officer.

Dated:
                                 TRANSCONTINENTAL GAS PIPE LINE CORPORATION

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

Certificate of Authentication:

CITIBANK N.A.,
as Trustee, certifies that this is one of the Securities  referred
to in the within-mentioned Indenture.

By:
        ----------------------------------------------------
        Authorized Signatory

                                       42
<PAGE>

                              [REVERSE OF SECURITY]

                   TRANSCONTINENTAL GAS PIPE LINE CORPORATION

                   8-7/8% Series [A/B] Note due July 15, 2012

         This Security is one of a duly authorized issue of 8-7/8% Series [A/B]
Notes due July 15, 2012 (the "Securities") of Transcontinental Gas Pipe Line
Corporation, a Delaware corporation (the "Company").

         1. Interest. The Company promises to pay interest on the principal
amount of this Security at 8-7/8% per annum from ________ __, ____ until
maturity. The Company will pay interest semiannually on January 15 and July 15
of each year (each an "Interest Payment Date"), or if any such day is not a
Business Day, on the next succeeding Business Day. Interest on the Securities
will accrue from the most recent Interest Payment Date on which interest has
been paid or, if no interest has been paid, from ________ __, ____; provided
that if there is no existing Default in the payment of interest, and if this
Security is authenticated between a record date referred to on the face hereof
and the next succeeding Interest Payment Date, interest shall accrue from such
next succeeding Interest Payment Date; provided, further, that the first
Interest Payment Date shall be ________ __, ____ and interest accrued from
________ __, ____ shall be payable on such date. Further, the Company shall pay
interest on overdue principal and premium, if any, from time to time on demand
at a rate equal to the interest rate then in effect; it shall pay interest on
overdue installments of interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

         2. Method of Payment. The Company will pay interest on the Securities
(except defaulted interest) to the Persons who are registered Holders of
Securities at the close of business on the record date next preceding the
Interest Payment Date, even if such Securities are canceled after such record
date and on or before such Interest Payment Date. The Holder must surrender this
Security to a Paying Agent to collect payments of principal and premium, if any.
The Company will pay the principal of, and premium, if any, and interest on the
Securities in money of the United States of America that at the time of payment
is legal tender for payment of public and private debts. Payments in respect of
the Securities represented by a Global Security (including principal, premium,
if any, Liquidated Damages, if any, and interest) will be made by wire transfer
of immediately available funds to the accounts specified by The Depository Trust
Company. The Company will make all payments in respect of a certificated
Security (including principal, premium, if any, Liquidated Damages, if any, and
interest) by mailing a check to the registered address of each Holder thereof;
provided, however, that payments on a certificated Security will be made by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such
account no later than 30 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).

         3. Ranking. The Securities are senior unsecured obligations of the
Company.

         4. Optional Redemption. The Securities may be redeemed at any time, at
the option of the Company, in whole or from time to time in part, at a price
equal to the greater of (i) 100% of the principal amount of the Securities then
outstanding to be redeemed, or (ii) the sum of the present values of the
remaining scheduled payments of principal and interest thereon from the
Redemption Date to the Stated Maturity Date computed by discounting such
payments to the Redemption Date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at a rate equal to the sum of 50 basis
points plus the Adjusted Treasury Rate on the third Business Day prior to the
Redemption Date, as calculated by an Independent Investment Banker.

         "Adjusted Treasury Rate" means (i) the yield, under the heading which
represents the average for the immediately preceding week, appearing in the most
recently published statistical release designated "H.15(519)" or any successor
publication which is published weekly by the Board of Governors of the Federal
Reserve System and which contains yields on actively traded U.S. Treasury
securities adjusted to constant maturity under the caption "Treasury Constant
Maturities," for the maturity corresponding to the Comparable Treasury Issue (if
no maturity is within three months before or after the remaining term of the
Securities, yields for the two published maturities most closely corresponding
to the Comparable Treasury Issue will be determined and the Adjusted Treasury
Rate will be interpolated or extrapolated from such yields on a straight line
basis, rounding to the nearest month), or (ii) if such release (or any successor
release) is not published during the week preceding the calculation date or does
not contain such yields, the rate per annum equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue, calculated using a price for
the Comparable Treasury

                                       43
<PAGE>

Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date.

         "Comparable Treasury Issue" means the U.S. Treasury security selected
by an Independent Investment Banker as having a maturity comparable to the
remaining term of the Securities that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term
of the Securities or, if, in the reasonable judgment of the Independent
Investment Banker, there is no such security, then the Comparable Treasury Issue
will mean the U.S. Treasury security or securities selected by an Independent
Investment Banker as having an actual or interpolated maturity or maturities
comparable to the remaining term of the Securities.

         "Comparable Treasury Price" means (i) the average of five Reference
Treasury Dealer Quotations for the applicable Redemption Date, after excluding
the highest and lowest Reference Treasury Dealer Quotations, or (ii) if the
Independent Investment Banker obtains fewer than five such Reference Treasury
Dealer Quotations, the average of all such quotations.

         "Independent Investment Banker" means Salomon Smith Barney Inc. and any
successor firm, or if any such firm is unwilling or unable to serve as such, an
independent investment and banking institution of national standing appointed by
the Company.

         "Reference Treasury Dealer Quotations" means the average, as determined
by the Independent Investment Banker of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker and the
Trustee at 5:00 p.m., New York City time, on the third Business Day preceding
such Redemption Date.

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

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

         5. Paying Agent and Registrar. Initially, Citibank N.A. (the
"Trustee"), the Trustee under the Indenture, will act as Paying Agent and
Registrar. The Company may change any Paying Agent, Registrar, co-registrar or
additional paying agent without notice to any Holder. The Company or any of its
subsidiaries may act in any such capacity.

         6. Indenture. The Company issued the Securities under an Indenture
dated as of July 3, 2002 (as amended, supplemented or otherwise modified form
time to time, the "Indenture") between the Company and the Trustee. The terms of
the Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S.
Code Sections 77aaa-77bbbb), as in effect on the date of execution of the
Indenture (the "TIA"). The Securities are subject to all such terms, and Holders
are referred to the Indenture and such Act for a statement of such terms. The
Securities are unsecured general obligations of the Company. Capitalized terms
used but not defined in this Security have the respective meanings given to such
terms in the Indenture.

         7. Denominations, Transfer, Exchange. The Securities are in registered
form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Securities may be registered and Securities may be
exchanged as provided in the Indenture. The Registrar and the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not exchange or register the transfer of any
Securities during the period between a record date and the corresponding
Interest Payment Date.

         8. Persons Deemed Owners. The registered Holder of a Security shall be
treated as its owner for all purposes.

                                       44
<PAGE>

         9. Amendments and Waivers. Subject to certain exceptions and
limitations, the Indenture or the Securities may be amended or supplemented with
the consent of the Holders of at least a majority in principal amount of the
then outstanding Securities, and compliance in a particular instance by the
Company with any provision of the Indenture may be waived (other than certain
provisions, including any continuing Default or Event of Default in the payment
of the principal of, or premium, if any, or interest on the Securities) by the
Holders of at least a majority in principal amount of the Securities then
outstanding in accordance with the terms of the Indenture. Without the consent
of any Holder, the Company and the Trustee may amend or supplement the Indenture
or the Securities to cure any ambiguity, omission, defect or inconsistency; to
comply with the Indenture in the case of the merger, consolidation or sale or
other disposition of all or substantially all of the assets of the Company; to
provide for uncertificated Securities in addition to or in place of certificated
Securities; to add any additional Events of Default; to provide for the
acceptance under the Indenture of a successor trustee in compliance with the
provisions thereof; to secure the Securities pursuant to the requirements under
the Indenture; to comply with any requirements in order to effect or maintain
the qualification of the Indenture under the Trust Indenture Act of 1939, as
amended; to comply with any requirements of the SEC in connection with
qualifying the Indenture under the TIA; to add to the covenants of the Company
for the benefit of the Holders or to surrender any power conferred upon the
Company; or to make any change that does not adversely affect the rights of any
Holder in any material respect.

         The right of any Holder to participate in any consent required or
sought pursuant to any provision of the Indenture (and the obligation of the
Company to obtain any such consent otherwise required from such Holder) may be
subject to the requirement that such Holder shall have been the Holder of record
of any Securities with respect to which such consent is required or sought as of
a date identified by the Trustee in a notice furnished to Holders in accordance
with the terms of the Indenture.

         Without the consent of each Holder affected, the Company may not (i)
reduce the percentage of principal amount of Securities whose Holders must
consent to an amendment, supplement or waiver, (ii) reduce the rate of or change
the time for payment of interest, including default interest, on any Security,
(iii) reduce the principal of or change the fixed maturity of any Security or
alter the premium or other provisions with respect to redemption, (iv) make any
Security payable in money other than that stated in the Security, (v) impair the
right to institute suit for the enforcement of any payment of principal of, or
premium, if any, or interest on any Security, (vi) make any change in the
percentage of principal amount of Securities necessary to waive compliance with
certain provisions of the Indenture or (vii) waive a continuing Default or Event
of Default in the payment of principal of, or premium, if any, or interest on
the Securities.

         10. Defaults and Remedies. Events of Default include: default in
payment of interest or Liquidated Damages, if any, on the Securities for 30
days; default in payment of principal of, or premium, if any, on the Securities;
default in the performance, or breach, of any of its other covenants, warranties
or agreements in the Indenture by the Company for 90 days after written notice
by the Trustee or by the Holders of at least 25% of the aggregate principal
amount of the Securities then outstanding; certain voluntary or involuntary
events involving bankruptcy, insolvency or reorganization of the Company. If an
Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the then outstanding Securities may declare the
principal of, and premium, if any, and interest on all the Securities to be
immediately due and payable, except that in the case of an Event of Default
arising from certain events of bankruptcy, insolvency or reorganization of the
Company, all outstanding Securities become due and payable immediately without
further action or notice. The amount due and payable upon the acceleration of
any Security is equal to 100% of the principal amount thereof plus premium, if
any, and accrued interest to the date of payment. Holders may not enforce the
Indenture or the Securities except as provided in the Indenture. The Trustee may
require indemnity reasonably satisfactory to it before it enforces the Indenture
or the Securities. Subject to certain limitations, Holders of a majority in
principal amount of the then outstanding Securities may direct the Trustee in
its exercise of any trust or power. The Trustee may withhold from Holders notice
of any continuing default (except a default in payment of principal or premium,
if any, or interest) if it determines that withholding notice is in their
interests. The Company must furnish an annual compliance certificate to the
Trustee.

         11. Discharge Prior to Maturity. The Indenture shall be discharged and
canceled upon the payment of all of the Securities and shall be discharged
except for certain obligations upon the irrevocable deposit with the Trustee of
funds or U.S. Government Obligations sufficient for such payment.

         12. Trustee Dealings with the Company. The Trustee, in its individual
or any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not Trustee.

                                       45
<PAGE>

         13. No Recourse Against Others. A director, officer, employee or
stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. Each Holder by accepting a Security waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Securities.

         14. Authentication. This Security shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent.

         15. CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Securities as a convenience to the Holders of
the Securities. No representation is made as to the accuracy of such numbers as
printed on the Securities and reliance may be placed only on the other
identification numbers printed thereon.

         16. Abbreviations. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

         17. Governing Law. The Indenture and the Securities shall be governed
by and constructed in accordance with, the laws of the State of New York.

         18. [Additional Rights and Obligations of Holders of Transfer
Restricted Securities. In addition to the rights provided to Holders of
Securities under the Indenture, Holders of Transfer Restricted Securities shall
have all the rights set forth in the Registration Rights Agreement applicable to
such Securities. Each Holder of a Transfer Restricted Security , by his
acceptance thereof, acknowledges and agrees to the provisions of such
Registration Rights Agreement, including without limitation the obligations of
the Holders with respect to a registration and the indemnification of the
Company to the extent provided therein.]**

         The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture. Request may be made to:

Transcontinental Gas Pipe Line Corporation
2800 Post Oak Blvd.
Houston, Texas 77056
Telecopier No.: (713) 215-2435
Attention: Treasurer

----------
**This paragraph should be included only if the Security is a Transfer
Restricted Security.

                                       46
<PAGE>

                                 ASSIGNMENT FORM

         To assign this Security, fill in the form below: (I) or (we) assign and
transfer this Security to
                          ----------------------------------------

--------------------------------------------------------------------------------
             (Insert assignee's social security or tax I.D. number)

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

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint _______________________________________________________
as agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him.

Date:
      --------------------------------------
Your Signature:
               -----------------------------------------------------------------
               (Sign exactly as your name appears on the face of this Security)

Signature Guarantee:
                    ------------------------------------------------------------
                       (Participant in a Recognized Signature Guaranty
                                     Medallion Program)

         In connection with any transfer of any of the Securities evidenced by
this certificate occurring prior to the expiration of the period referred to in
Rule 144(k) under the Securities Act after the later of the date of original
issuance of such Securities and the last date, if any, on which such Securities
were owned by the Company or any Affiliate of the Company, the undersigned
confirms that such Securities are being transferred as specified below:

                                    CHECK ONE

(1) [ ]    to the Company or a Subsidiary thereof; or

(2) [ ]    to a "qualified institutional buyer" (as defined in Rule 144A
           under the Securities Act of 1933) that purchases for its own
           account or for the account of a qualified institutional buyer to
           whom notice is given that such transfer is being made in reliance
           on Rule 144A, in each case pursuant to and in compliance with
           Rule 144A under the Securities Act of 1933; or

(3) [ ]    outside the United States to a "foreign person" in compliance with
           Rule 904 of Regulation S under the Securities Act of 1933; or

(4) [ ]    pursuant to an effective registration statement under the
           Securities Act of 1933; or

(5) [ ]    pursuant to an exemption from the registration requirements of the
           Securities Act of 1933, provided by Rule 144 thereunder.

and unless the box below is checked, the undersigned confirms that such Security
is not being transferred to an "affiliate" of the Company as defined in Rule 144
under the Securities Act of 1933 (an "Affiliate"):

         > [ ] The transferee is an Affiliate of the Company.

         Unless one of items (1) through (5) above is checked, the Trustee will
refuse to register any of the Securities evidenced by this certificate in the
name of any person other than the registered Holder thereof; provided, however,
that if item (3) or (5) is checked, the Company or the Trustee may require,
prior to registering any such transfer of the Securities, in their sole
discretion, such written legal opinions, certifications (including an investment
letter, and in the case of a transfer pursuant to item (3), a Regulation S
Letter in substantially the form set forth below) and other information as the
Trustee or the Company have reasonably requested to confirm that such transfer
is being made pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act of 1933.

                                       47
<PAGE>

         If none of the foregoing items are checked, the Trustee or Registrar
shall not be obligated to register this Security in the name of any person other
than the Holder hereof unless and until the conditions to any such transfer of
registration set forth herein and in Section 2.06 of the Indenture shall have
been satisfied.

                                Signed:
                                        ----------------------------------------
                                (Sign exactly as your name appears on the other
                                side of this Security)

Signature Guarantee:
                    ------------------------------------------------------------

                                       48
<PAGE>

              TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

         The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933 and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to request
such information and that it is aware that the transferor is relying upon the
undersigned's foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

<Table>
<S>                                                        <C>
Dated:
        -----------------------------------------------    -----------------------------------------------------
                                                           Notice:  to be executed by an executive officer***
</Table>

----------
***These paragraphs should be included only if the Security is a Transfer
Restricted Security.

                                       49
<PAGE>

                   FORM OF REGULATION S LETTER TO BE DELIVERED
              IN CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S

                                                 ------------------, ----

Citibank, N.A., as Trustee.
111 Wall Street, 14th Floor
New York, New York 10005
Telecopier No.: (212) 657-3862
Attention: Citibank Agency & Trust

        Re: 8-7/8% Series A Notes due July 15, 2012 of Transcontinental Gas Pipe
            Line Corporation.

Gentlemen:

         In connection with our proposed sale of $________________ principal
amount of the above referenced Securities (the "Securities"), we confirm that
such sale has been effected pursuant to and in accordance with Regulation S
under the Securities Act of 1933, as amended (the "Securities Act"), and,
accordingly, we represent that:

         (1) the offer of the Securities was not made to a person in the United
States of America;

         (2) at the time the buy order was originated, the transferee was
outside the United States of America or we and any person acting on our behalf
reasonably believed that the transferee was outside the United States of
America;

         (3) no directed selling efforts have been made by us in the United
States of America in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S, as applicable; and

         (4) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act.

         You and Transcontinental Gas Pipe Line Corporation are entitled to rely
upon this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceedings or
official inquiry with respect to the matters covered hereby. Terms used but not
defined in this letter have the meanings set forth in Regulation S under the
Securities Act.

                                 Very truly yours,

                                 [Name of Transferor]

                                 By
                                    ---------------------------------------
                                 Authorized Signature

                                       50
<PAGE>

                     SCHEDULE OF EXCHANGES OF SECURITIES***

         The following exchanges, redemptions or repurchases of a part of this
Global Security have been made:

<Table>
<Caption>
                                                                        Principal Amount of
                                                                          Global Security         Signature of
                          Amount of decrease     Amount of increase       following such       authorized Officer,
                          in Principal Amount    in Principal Amount       decrease (or            Trustee or
  Date of Transaction     of Global Security     of Global Security          increase)        Securities Custodian
  -------------------     ------------------     ------------------     --------------------  --------------------
<S>                       <C>                    <C>                    <C>                  <C>

</Table>

----------
***This Schedule should be included only if the Security is a Global Security.

                                       51<PAGE>
                                                                    EXHIBIT 10.1

                               PURCHASE AGREEMENT

                                 BY AND BETWEEN

                                E-BIRCHTREE, LLC

                                       AND

                       ENTERPRISE PRODUCTS OPERATING L.P.

                                   DATED AS OF

                                  JULY 31, 2002

<PAGE>

                                TABLE OF CONTENTS

<Table>

<S>                                                                                                     <C>
ARTICLE I SALE AND PURCHASE..............................................................................2
   Section 1.1       Agreement to Sell and to Purchase...................................................2
   Section 1.2       Closing.............................................................................2
   Section 1.3       Deliveries by the Seller............................................................3
   Section 1.4       Deliveries by the Buyer.............................................................3
   Section 1.5       Reserved............................................................................4
   Section 1.6       Adjustment to Purchase Price........................................................4

ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE SELLER..................................................6
   Section 2.1       Corporate Organization..............................................................6
   Section 2.2       Capitalization; Title...............................................................6
   Section 2.3       Subsidiaries and Equity Interests...................................................7
   Section 2.4       Validity of Agreement; Authorization................................................7
   Section 2.5       No Conflict or Violation............................................................7
   Section 2.6       Consents and Approvals..............................................................8
   Section 2.7       Financial Statements................................................................8
   Section 2.8       Absence of Certain Changes or Events................................................9
   Section 2.9       Tax Matters.........................................................................9
   Section 2.10         Absence of Undisclosed Liabilities..............................................11
   Section 2.11         Real and Personal Property; Sufficiency of Assets of the Company................12
   Section 2.12         Regulatory Matters..............................................................13
   Section 2.13         Intellectual Property...........................................................14
   Section 2.14         Compliance with Law.............................................................15
   Section 2.15         Litigation......................................................................15
   Section 2.16         Contracts.......................................................................16
   Section 2.17         Books and Records of the Company................................................17
   Section 2.18         Employee Plans..................................................................17
   Section 2.19         Insurance.......................................................................18
   Section 2.20         Transactions with Directors, Officers and Affiliates............................19
   Section 2.21         Environmental; Health and Safety Matters........................................19
   Section 2.22         Brokers.........................................................................21
   Section 2.23         No Default......................................................................21
   Section 2.24         Contemporaneous Transactions....................................................22
   Section 2.25         Reserved........................................................................22
   Section 2.26         Reserved........................................................................22
   Section 2.27         Financial Derivatives/Hedging Agreements........................................22
   Section 2.28         Certain Commercial Contracts....................................................22

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE BUYER.................................................22
   Section 3.1       Organization.......................................................................22
   Section 3.2       Validity of Agreement..............................................................23
   Section 3.3       No Conflict or Violation; No Defaults..............................................23
   Section 3.4       Consents and Approvals.............................................................23
   Section 3.5       Brokers............................................................................23
   Section 3.6       Financial Ability..................................................................23
</Table>

                                       i
<PAGE>

<Table>

<S>                                                                                                    <C>
ARTICLE IV COVENANTS....................................................................................24
   Section 4.1       Reserved...........................................................................24
   Section 4.2       Reserved...........................................................................24
   Section 4.3       Employee Matters...................................................................24
   Section 4.4       Reserved...........................................................................25
   Section 4.5       Further Assurances.................................................................25
   Section 4.6       Reserved...........................................................................25
   Section 4.7       Reserved...........................................................................25
   Section 4.8       Reserved...........................................................................25
   Section 4.9       Non-Solicitation of Employees......................................................26
   Section 4.10         Reserved........................................................................26
   Section 4.11         Tax Covenants...................................................................26
   Section 4.12         Information Technology..........................................................28
   Section 4.13         Reserved........................................................................29
   Section 4.14         Bonds...........................................................................29
   Section 4.15         Transitional Trademark License..................................................30
   Section 4.16         Non-Software Copyright License..................................................30
   Section 4.17         Intercompany Indebtedness.......................................................30
   Section 4.18         SEC Required Financial Statements...............................................30
   Section 4.19         Release of Certain Obligations..................................................31
   Section 4.20         Delivery of Records.............................................................31
   Section 4.21         West Texas LPG Pipeline.........................................................31
   Section 4.22         Farm Fuel Lease.................................................................32
   Section 4.23         Connection Agreement............................................................32
   Section 4.24         Other Agreements................................................................33

ARTICLE V RESERVED......................................................................................33

ARTICLE VI RESERVED.....................................................................................34

ARTICLE VII RESERVED....................................................................................34

ARTICLE VIII INDEMNIFICATION............................................................................34
   Section 8.1       Survival...........................................................................34
   Section 8.2       Indemnification Coverage...........................................................34
   Section 8.3       Procedures.........................................................................36
   Section 8.4       Remedy.............................................................................37

ARTICLE IX MISCELLANEOUS PROVISIONS.....................................................................37
   Section 9.1       Publicity..........................................................................37
   Section 9.2       Successors and Assigns; No Third-Party Beneficiaries...............................37
   Section 9.3       Investment Bankers, Financial Advisors, Brokers and Finders........................38
   Section 9.4       Fees and Expenses..................................................................38
   Section 9.5       Notices............................................................................38
   Section 9.6       Entire Agreement...................................................................39
   Section 9.7       Waivers and Amendments.............................................................40
</Table>

                                       ii
<PAGE>

<Table>
<S>                                                                                                     <C>
   Section 9.8       Severability.......................................................................40
   Section 9.9       Titles and Headings................................................................40
   Section 9.10         Signatures and Counterparts.....................................................40
   Section 9.11         Enforcement of the Agreement....................................................41
   Section 9.12         Governing Law...................................................................41
   Section 9.13         Certain Definitions.............................................................41
   Section 9.14         Reserved........................................................................42
</Table>

Exhibit Index

Exhibit A         Natural Gas Liquids Terminals
Exhibit B         Storage Facilities
Exhibit C         Form of Transition Services Agreement

                                      iii
<PAGE>

                               PURCHASE AGREEMENT

         THIS PURCHASE AGREEMENT (this "Agreement") is made and entered into as
of this 31st day of July, 2002, by and between E-Birchtree, LLC, a Delaware
limited liability company (the "Seller"), and Enterprise Products Operating
L.P., a Delaware limited partnership (the "Buyer").

                                   WITNESSETH:

         WHEREAS, Williams Natural Gas Liquids, Inc., a Delaware corporation
("WNGL"), owned 100% of the issued and outstanding equity interests of
Mid-America Pipeline Company, a Delaware corporation ("MAPCO"), and 80% of each
class of issued and outstanding capital stock of Seminole Pipeline Company, a
Delaware corporation ("Seminole" and such interest in such capital stock, the
"Seminole Stock");

         WHEREAS, MAPCO was converted (the "MAPL Conversion") into Mid-America
Pipeline Company, LLC, a Delaware limited liability company ("MAPL") and WNGL
owned all of the issued and outstanding limited liability company interests in
MAPL immediately following the conversion (the "MAPL Membership Interests");

         WHEREAS, MAPL distributed ("Excluded Subsidiaries Distribution") all of
its equity interests in the Juarez Pipeline Company and MAPL Investments, Inc.
to WNGL (such entities, together with any subsidiaries of such entities, the
"Excluded Subsidiaries");

         WHEREAS, Williams Midstream Natural Gas Liquids, Inc., a Delaware
limited liability company ("WMNGL") owned (i) the natural gas liquids terminals
described on Exhibit A and (ii) the storage and other facilities described on
Exhibit B (the "Terminals and Storage Assets");

         WHEREAS, WMNGL formed and owned 100% of the issued and outstanding
limited liability company interests (the "Sapling Membership Interests") of
Sapling, LLC, a Delaware limited liability company ("Sapling") and contributed
the Terminals and Storage Assets to Sapling (the "Sapling Asset Transfer");

         WHEREAS, WMNGL distributed the Sapling Membership Interests to The
Williams Companies, Inc., a Delaware corporation ("WMB"), which then contributed
the Sapling Membership Interests to WNGL, which then contributed the Sapling
Membership Interests to MAPL (such distribution and contribution together with
the Sapling Asset Transfer, collectively the "Sapling Contributions");

         WHEREAS, WNGL has formed and owned 100% of the issued and outstanding
limited liability company interests (the "Company Membership Interests") of
Mapletree, LLC, a Delaware limited liability company (the "Company");

         WHEREAS, WNGL contributed the MAPL Membership Interests to the Company
(the "MAPL Contributions");

<PAGE>

         WHEREAS, WNGL has formed and owned 100% of the issued and outstanding
limited liability company interests (the "Oaktree Membership Interests") of
E-Oaktree, LLC, a Delaware limited liability company ("Oaktree");

         WHEREAS, WNGL contributed the Seminole Stock to Oaktree (the "Seminole
Contributions");

         WHEREAS, except for the Class B Unit, as defined in the amended and
restated limited liability company agreement of Seller (the "Golden Unit"),
which unit has not been issued prior to the transactions contemplated by this
Agreement, WNGL has formed and owns 100% of the issued and outstanding limited
liability company interests of Seller ("Seller Membership Interests" and
together with the Company Membership Interests, the MAPL Membership Interests,
the Sapling Membership Interests and the Oaktree Membership Interests, the
"Membership Interests");

         WHEREAS, WNGL contributed the Company Membership Interests and the
Oaktree Membership Interests to Seller (the "Seller Contributions" and, together
with the Sapling Contributions, the Seminole Contributions and the MAPL
Contributions, the "Contributions"); and

         WHEREAS, upon the terms and subject to the conditions set forth herein
Seller desires to sell to the Buyer, and the Buyer desires to purchase from
Seller (a) 98% of the Company Membership Interests (the "Subject Membership
Interest") and (b) the Golden Unit.

         NOW, THEREFORE, in consideration of the mutual terms, conditions and
other agreements set forth herein, the parties hereto hereby agree as follows:

                                    ARTICLE I

                                SALE AND PURCHASE

         Section 1.1 Agreement to Sell and to Purchase. Upon the terms and
subject to the conditions set forth in this Agreement, on the date hereof, in
exchange for an aggregate purchase price of $940,169,097.30 in cash (the
"Purchase Price"), as adjusted, the Seller is (a) selling, assigning,
transferring, conveying and delivering to the Buyer the Subject Membership
Interest, free and clear of any pledges, restrictions on transfer, proxies and
voting or other agreements, liens, claims, charges, mortgages, security
interests or other legal or equitable encumbrances, limitations or restrictions
of any nature whatsoever ("Encumbrances"), and (b) selling and issuing to the
Buyer the Golden Unit, and the Buyer is purchasing and accepting the Golden
Unit.

         Section 1.2 Closing. The closing of the sale and purchase of Subject
Membership Interest and the Golden Unit (the "Closing") shall take place at
10:00 A.M. on the date hereof (the "Closing Date"), at the offices of Vinson &
Elkins L.L.P., 1001 Fannin Street, Suite 2300, Houston, Texas 77002 or at such
other place as the parties hereto shall agree in writing.

                                       2
<PAGE>

         Section 1.3 Deliveries by the Seller. Upon the Closing, the Seller is
delivering to the Buyer or its designee:

                           (a) an assignment, in form and substance reasonably
         satisfactory to the Buyer and the Seller, transferring to the Buyer the
         Subject Membership Interest in the Company, duly executed by the
         Seller;

                           (b) resolutions of the Board of Directors of the
         Seller authorizing the execution, delivery and performance of this
         Agreement and a certificate of an officer of the Seller, dated as of
         the date of this Agreement, to the effect that such resolutions were
         duly adopted and are in full force and effect;

                           (c) a copy of the fairness opinion delivered by
         Merrill Lynch to the Seller or its affiliates covering the transactions
         under this Agreement;

                           (d) the limited liability company agreement of the
         Company (the "Company LLC Agreement"), in form and substance reasonably
         satisfactory to the Buyer and the Seller, duly executed by the Seller;

                           (e) the amended and restated limited liability
         company agreement of the Seller (the "Seller LLC Agreement"), in form
         and substance reasonably satisfactory to the Buyer and the Seller, duly
         executed by the Seller;

                           (f) a Transition Services Agreement to be entered
         into between MAPL and WNGL (the "Transition Services Agreement"),
         substantially in the form of Exhibit C hereto, duly executed by WNGL;

                           (g) a guaranty agreement, in form and substance
         reasonably satisfactory to the Buyer, duly executed by WMB and WNGL;

                           (h) a release, in form and substance reasonably
         satisfactory to the Buyer, duly executed by WMB and WNGL;

                           (i) an omnibus assignment, in form and substance
         reasonably satisfactory to the Buyer, duly executed by WMB and WNGL;
         and

                           (j) all other previously undelivered documents
         required to be delivered by the Seller to the Buyer at or prior to the
         Closing Date.

         Section 1.4 Deliveries by the Buyer.

                           (a) Upon the Closing, the Buyer is delivering to the
         Seller:

                                    (i) the Purchase Price, less the Prudential
         Debt (as hereinafter defined), by wire transfer of immediately
         available funds to the account or accounts specified by the Seller in a

                                       3
<PAGE>

         written notice to be delivered to the Buyer on or prior to the date
         hereof;

                                    (ii) resolutions of the Board of Directors
         of the general partner of the Buyer authorizing the execution, delivery
         and performance of this Agreement and a certificate of an officer of
         the general partner of the Buyer, dated as of the date of this
         Agreement, to the effect that such resolutions were duly adopted and
         are in full force and effect;

                                    (iii) the Company LLC Agreement, duly
         executed by the Buyer;

                                    (iv) the Seller LLC Agreement, duly executed
         by a designee of the Buyer;

                                    (v) the Transition Services Agreement, duly
         executed by MAPL; and

                                    (vi) all other previously undelivered
         documents required to be delivered by the Buyer to the Seller at or
         prior to the Closing Date.

                           (b) Contemporaneously with the Closing, the Buyer
         shall pay to The Prudential Insurance Company of America
         ("Prudential"), on the Seller's and MAPL's behalf, the outstanding
         principal and any interest due, together with any prepayment penalties
         (the "Prudential Debt" and such amount being a portion of the Purchase
         Price), under those certain notes issued by MAPL to Prudential pursuant
         to the Note Purchase Agreements identified on Schedule 1.4(b), by wire
         transfer of immediately available funds to the account or accounts
         specified by Prudential in a written notice to be delivered by the
         Seller to the Buyer on or prior to the date hereof.

         Section 1.5 Reserved.

         Section 1.6 Adjustment to Purchase Price.

                           (a) As soon as possible following the Closing (but in
         any event within 15 days following the Closing), the Seller shall
         prepare and deliver to the Buyer a statement (the "Benchmark Working
         Capital Statement") setting forth the amount of Benchmark Working
         Capital (as defined below in Section 1.6(c)) and a statement (the
         "Final Working Capital Statement") setting forth the amount of Final
         Working Capital (as defined below in Section 1.6(c)). The Buyer shall
         have 15 days to review the Benchmark Working Capital Statement and the
         Final Working Capital Statement and supporting documentation and shall
         have reasonable access to the books, records and personnel of the
         Seller for purposes of verifying the accuracy of the calculation of
         Benchmark Working Capital and Final Working Capital. The Seller's
         calculation of Benchmark Working Capital and Final Working Capital
         shall be deemed final

                                       4
<PAGE>

         and binding unless the Buyer raises an objection in writing within 15
         days of its receipt thereof, specifying in reasonable detail the nature
         and extent of such objection. If the Buyer raises such an objection to
         the calculation of Benchmark Working Capital and Final Working Capital
         within such 15-day period, and if the Seller and the Buyer are unable
         to resolve such objection within 15 days of the date the Seller
         receives such objection, then the disputed matter shall be submitted
         for determination to PriceWaterhouseCoopers or such other accounting
         firm of national reputation mutually agreeable to the Seller and the
         Buyer, which shall have up to 10 days to render its determination with
         respect to such disputed matter. The determination of such accounting
         firm shall be final and binding for all purposes. The fees and expenses
         of such accounting firm shall be borne equally by the Seller and the
         Buyer.

                           (b) If Final Working Capital exceeds the Benchmark
         Working Capital, then the Buyer will pay the Seller the amount of such
         excess. If Final Working Capital is less than Benchmark Working
         Capital, then the Seller will pay the Buyer the amount of such
         shortfall. Any such payments will be made within 5 business days of the
         determination of the adjustment by wire transfer of immediately
         available funds and any such payments shall be deemed to be an
         adjustment to the Purchase Price.

                           (c) The following terms shall have the following
         meanings:

         "Benchmark Working Capital" shall mean the Working Capital on the close
of business on June 30, 2002 as determined pursuant to this Section 1.6 and in
accordance with the methodologies employed in the preparation of the balance
sheet attached hereto as Schedule 1.6.

         "Final Working Capital" shall mean the Working Capital on the close of
business on the Closing Date as determined pursuant to this Section 1.6 and in
accordance with the methodologies employed in the preparation of the balance
sheet attached hereto as Schedule 1.6.

         "Working Capital" shall mean the current assets minus current
liabilities of the Company and its Subsidiaries (on a pro forma consolidated
basis excluding the Excluded Subsidiaries, all intercompany accounts (except
trade receivables due to the Company or its Subsidiaries), and all income taxes
payable (or due under a tax sharing agreement) by the Company or its
Subsidiaries) determined in accordance with generally accepted accounting
principles as consistently applied by the Seller with respect to the businesses
contributed to the Company immediately prior to the date hereof.

                           (d) The Seller shall remit to the Buyer as soon as
         practicable after the receipt thereof any revenue received by the
         Seller or any affiliate of the Seller subsequent to the Closing that is
         attributable to the Assets.

                           (e) Notwithstanding anything herein to the contrary,
         the

                                       5
<PAGE>

         amounts payable to the Buyer pursuant to this Section 1.6 shall not be
         subject to the Deductible (as defined in Section 8.2(c)) or the Cap (as
         defined in Section 8.2(c)).

                                   ARTICLE II

                  REPRESENTATIONS AND WARRANTIES OF THE SELLER

         The Seller hereby represents and warrants as follows:

                  Section 2.1 Corporate Organization. The Seller, the Company,
MAPL, Sapling and Oaktree are each limited liability companies duly organized
and validly existing under the laws of Delaware. The Seller, the Company and
each of the Subsidiaries (as defined below in Section 2.3) of the Company have
all requisite power and authority and all governmental licenses, authorizations,
permits, consents and approvals to own their respective properties and assets
and to conduct their businesses as now conducted, except for immaterial failures
to have such licenses, authorizations, permits, consents and approvals. The
Seller, the Company and each of the Subsidiaries of the Company are duly
qualified to do business as a foreign entity and are in good standing in every
jurisdiction where the character of the properties owned or leased by them or
the nature of the business conducted by them makes such qualification necessary,
except where the failure to be so qualified or in good standing would not
individually or in the aggregate have a Material Adverse Effect (as defined in
Section 9.13). Schedule 2.1 sets forth all of the jurisdictions in which the
Seller, the Company and each of the Subsidiaries of the Company are qualified to
do business. Copies of the Organizational Documents (as defined below) of the
Seller and each of its Subsidiaries with all amendments thereto to the date
hereof, have been furnished by the Seller to the Buyer or their representatives,
and such copies are accurate and complete as of the date hereof. "Organizational
Documents" shall mean certificates of incorporation, by-laws, certificates of
formation, limited liability company operating agreements, partnership or
limited partnership agreements or other formation or governing documents of a
particular entity.

                  Section 2.2 Capitalization; Title. Prior to the issuance of
the Golden Unit, all of the outstanding Seller Membership Interests are owned of
record and beneficially by WNGL, free and clear of any Encumbrances. All of the
outstanding Company Membership Interests are owned of record and beneficially by
Seller, free and clear of any Encumbrances. All of the outstanding MAPL
Membership Interests are owned of record and beneficially by the Company, free
and clear of any Encumbrances. All of the outstanding Sapling Membership
Interests are owned of record and beneficially by MAPL, free and clear of any
Encumbrances. All of the Membership Interests have been duly authorized and
validly issued. Except for this Agreement, the Seminole Purchase Agreement (as
defined in Section 9.13) and as set forth on Schedule 2.2, there are no
outstanding options, warrants, agreements, conversion rights, preemptive rights
or other rights to subscribe for, purchase or otherwise acquire any of the
Membership Interests. There are no voting trusts or other agreements or
understandings to which any of the Seller or any of its Subsidiaries is a party
with respect to the voting of the

                                       6
<PAGE>

Membership Interests. There is no indebtedness of the Company having general
voting rights issued and outstanding. Except for this Agreement and the Seminole
Purchase Agreement, there are no outstanding obligations of any person to
repurchase, redeem or otherwise acquire outstanding Membership Interests or any
securities convertible into or exchangeable for any Membership Interests. The
Seller has valid and marketable title to the Subject Membership Interest, and
the sale and transfer of the Subject Membership Interest by the Seller to the
Buyer hereunder will transfer title to the Subject Membership Interest to the
Buyer free and clear of any Encumbrances. The Golden Unit has been duly
authorized and validly issued.

                  Section 2.3 Subsidiaries and Equity Interests. Except for the
Company, MAPL, Sapling, Oaktree and Seminole, which are Subsidiaries of the
Seller, the Seller does not own, directly or indirectly, any shares of capital
stock, voting rights or other equity interests or investments in any other
person or any interests in any other asset. Except for MAPL and Sapling, which
are Subsidiaries of the Company, the Company does not own, directly or
indirectly, any shares of capital stock, voting rights or other equity interests
or investments in any other person. "Subsidiary" shall mean, with respect to a
specified person, any person in which such specified person owns, directly or
indirectly, any shares of capital stock, voting rights or other equity interests
or investments. The Company and each of its Subsidiaries do not have any rights
to acquire by any means, directly or indirectly, any capital stock, voting
rights, equity interests or investments in another person. All references in
this Agreement to the Company and its Subsidiaries shall in no way be deemed to
include any reference to assets or businesses previously owned by the Company or
its Subsidiaries which were distributed out of such entities (including, without
limitation, the Excluded Subsidiaries) prior to the Closing.

                  Section 2.4 Validity of Agreement; Authorization. The Seller
has the power to enter into this Agreement and to carry out its obligations
hereunder. The execution and delivery of this Agreement and the performance of
its obligations hereunder have been duly authorized by the Seller, and no other
proceedings on the part of the Seller are necessary to authorize such execution,
delivery and performance. This Agreement has been duly executed by each of the
Seller and constitutes the Seller's valid and binding obligation enforceable
against the Seller in accordance with its terms (except to the extent that its
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or other similar law affecting the enforcement of creditors'
rights generally or by general equitable principles). Each of the MAPL
Conversion, the Contributions and the Excluded Subsidiaries Distribution
(collectively, the "Reorganization Transactions") were duly authorized, and the
instruments executed in connection therewith (the "Reorganization Instruments")
were duly executed and constitute the valid and binding obligations enforceable
against the parties thereto (the "Reorganization Parties") in accordance with
their terms (except to the extent that their enforceability may be limited by
applicable bankruptcy, insolvency, reorganization or other similar law affecting
the enforcement of creditors' rights generally or by general equitable
principles).

                  Section 2.5 No Conflict or Violation. Except as set forth on
Schedule 2.5, (x) the execution, delivery and performance by the Seller of this
Agreement and the

                                       7
<PAGE>

documents to be delivered at the Closing and (y) the execution, delivery and
performance of the Reorganization Instruments by the Reorganization Parties,
does not and will not:

                            (a) violate or conflict with any provision of the
         Organizational Documents of the Seller, the Company or any of its
         Subsidiaries or any other Reorganization Party;

                            (b) materially violate any applicable provision of a
         material law, statute, judgment, order, writ, injunction, decree,
         award, rule, or regulation of any foreign, federal, tribal, state or
         local government, court, arbitrator, agency or commission or other
         governmental or regulatory body or authority ("Governmental
         Authority");

                            (c) materially violate, result in a material breach
         of, constitute (with due notice or lapse of time or both) a material
         default or cause any material obligation, penalty or premium to arise
         or accrue under, accelerate or permit the acceleration of the
         performance required by, or require any consent, authorization or
         approval under (i) any material contract, lease, loan agreement,
         mortgage, security agreement, trust indenture or other material
         agreement or instrument to which the Seller, the Company, or any of its
         Subsidiaries or any other Reorganization Party are a party or by which
         any of them is bound or to which any of their respective properties or
         assets is subject or (ii) any mortgage, security agreement, trust
         indenture, loan or debt agreement or any other agreement or instrument
         evidencing indebtedness for money borrowed to which the Seller or any
         of its affiliates, the Company, any of its Subsidiaries or any other
         Reorganization Party is a party or by which any of them is bound or to
         which any their respective properties or assets is subject; or

                            (d) result in the creation or imposition of any
         Encumbrance except Permitted Encumbrances upon any of the properties or
         assets of the Seller or any of its affiliates, the Company or any of
         its Subsidiaries.

                  Section 2.6 Consents and Approvals. Except as set forth on
Schedule 2.6, no material consent, approval, authorization, license, order or
permit, or declaration, filing or registration with, or notification to any
Governmental Authority or any other person, is required to be obtained by the
Seller or the Seller's affiliates (including, without limitation, the Company
and its Subsidiaries) in connection with the Reorganization Transactions, the
execution and delivery of this Agreement by the Seller or the performance of the
Seller's obligations hereunder. Except as set forth on Schedule 2.6, the
Reorganization Transactions do not (a) breach, violate or result in any default
under any agreements or instruments to which the Seller or any of the Seller's
affiliates (including the Company and its Subsidiaries) are parties or otherwise
are bound or (b) trigger, violate or otherwise create any right in or for any
person under any right of first refusal, preferential rights to purchase or
similar rights applicable in connection with the Reorganization Transactions or
the transactions contemplated by this Agreement.

                  Section 2.7 Financial Statements. The Seller has heretofore
furnished

                                       8
<PAGE>

to the Buyer copies of the financial statements of the Company's Subsidiaries
(other than Sapling) and the Excluded Subsidiaries as of December 31, 2001 (the
"2001 Financials") and the pro forma financial statements of the Company's
Subsidiaries (other than Sapling) as of June 30, 2002 (the "Pro Forma Financials
and, together with the 2001 Financials, the "Financial Statements"). The
Financial Statements were prepared on the basis of the information contained in
the books and records of the Seller and (a) the 2001 Financials were prepared in
accordance with U.S. generally accepted accounting principles ("GAAP")
consistently applied and (b) the Pro Forma Financials were prepared in a manner
consistent with the principles of GAAP. Except as described on Schedule 2.7, the
2001 Financials fairly present in all material respects the financial position,
results of operations and changes in cash flow of the Company's Subsidiaries
(other than Sapling) and the Excluded Subsidiaries as of the dates of such 2001
Financials and for the periods then ended (subject to normal year-end audit
adjustments consistent with prior periods).

                  Section 2.8 Absence of Certain Changes or Events. Except as
set forth in Schedule 2.8 (a) and except for the Reorganization Transactions,
since (x) December 31, 2001, the business of the Company and its Subsidiaries
has been conducted in the ordinary course consistent with past practices and (y)
since June 30, 2002 neither the Company nor any of its Subsidiaries has taken
any of the actions described in Schedule 2.8(b), except in connection with
entering into this Agreement. Since December 31, 2001, there has not been:

                            (a) any material destruction of, damage to, or loss
         of, any material asset of the Company or its Subsidiaries (whether or
         not covered by insurance) that has not been repaired or replaced;

                            (b) any material citation received or to the
         Seller's knowledge, any other citation received by the Seller, the
         Company or any of its Subsidiaries for any material violations of any
         act, law, rule, regulation, or code of any Governmental Authority
         related to the activities or business of the Seller, the Company or any
         of its Subsidiaries; or

                            (c) any other event or condition of any character
         that has had, or would reasonably be expected to have, a Material
         Adverse Effect.

                  Section 2.9 Tax Matters.

                            (a) For purposes of this Agreement, (i) "Tax
         Returns" shall mean returns, reports, exhibits, schedules, information
         statements and other documentation (including any additional or
         supporting material) filed or maintained, or required to be filed or
         maintained, in connection with the calculation, determination,
         assessment or collection of any Tax and shall include any amended
         returns; (ii) "Tax" or "Taxes" shall mean any and all Federal, state,
         local, foreign and other taxes, levies, fees, imposts, duties and
         charges of whatever kind (including any interest, penalties or
         additions to the tax imposed in connection therewith or with respect
         thereto), including, without limitation, taxes

                                       9
<PAGE>

         imposed on, or measured by, income, franchise, profits or gross
         receipts, ad valorem, value added, sales, use, service, real or
         personal property, capital stock, license, payroll, withholding,
         employment, social security, workers' compensation, unemployment
         compensation, utility, severance, production, excise, stamp,
         occupation, premium, windfall profits, transfer and gains taxes and
         customs duties; (iii) the "Code" shall mean the Internal Revenue Code
         of 1986, as amended from time to time (or any corresponding provision
         of succeeding law) and (iv) "Treasury Regulations" shall mean the
         Income Tax Regulations promulgated under the Code, as such regulations
         may be amended from time to time.

                            (b) Except as disclosed on Schedule 2.9, (i) all
         income and other material Tax Returns required under applicable law to
         be filed by or with respect to the Company, any of its Subsidiaries or
         predecessors thereto (including MAPCO) have been timely filed; (ii) all
         such Tax Returns were true, correct and complete in all material
         respects; (iii) all income and other material Taxes required to be paid
         by or with respect to the Company, any of its Subsidiaries or
         predecessors thereto (including MAPCO) (whether or not shown on any Tax
         Return) have been timely paid (except for Taxes which are being
         contested in good faith in appropriate proceedings); (iv) there is no
         action, suit, proceeding, audit or claim now pending or threatened in
         writing against, or with respect to, the Company, any of its
         Subsidiaries or predecessors thereto (including MAPCO) in respect of
         any income or other material Tax or assessment for any income or other
         material Tax; (v) all deficiencies or assessments asserted against the
         Company, any of its Subsidiaries or predecessors thereto (including
         MAPCO) by any Tax authority or with respect to Taxes have been paid or
         fully and finally settled and, to the knowledge of the Seller, no issue
         previously raised in writing by any such Tax authority reasonably could
         be expected to result in a material assessment on or after the date
         hereof; (vi) no written claim has been made by any Tax authority in a
         jurisdiction where the Company, any of its Subsidiaries or predecessors
         thereto (including MAPCO) have not filed a Tax Return that any of them
         are or may be subject to Tax by such jurisdiction, nor to the Seller's
         knowledge has any such assertion been threatened in writing; (vii)
         there are no extensions or outstanding requests for extensions of time
         within which to pay Taxes or file Tax Returns of or with respect to the
         Company, any of its Subsidiaries or predecessors thereto (including
         MAPCO); (viii) there has been no waiver, extension or request for
         extension of any applicable statute of limitations for the assessment
         or collection of any Taxes of the Company, any of its Subsidiaries or
         predecessors thereto (including MAPCO); (ix) each of the Company and
         its Subsidiaries has been a disregarded entity for Federal income tax
         purposes at all times from its formation prior to the sale and purchase
         of the Subject Membership Interest; (x) Seller is not a "foreign
         person" within the meaning of Section 1445 of the Code; (xi) neither
         the Company nor any of its Subsidiaries or any of their predecessors is
         a party to any agreement, whether written or unwritten, providing for
         the payment of Taxes, payment for Tax losses, entitlements to refunds
         or similar Tax matters; (xii) each of the Company, its Subsidiaries and
         predecessors thereto (including MAPCO) has withheld and paid

                                       10
<PAGE>

         all material Taxes required to be withheld by it in connection with any
         amounts paid or owing to any employee, creditor, independent contractor
         or other third party; (xiii) there are no Encumbrances on the assets of
         the Company or any of its Subsidiaries relating to or attributable to
         Taxes, other than liens for Taxes not yet due and payable or Taxes
         being contested in good faith in appropriate proceedings; (xiv)
         beginning on March 27, 1998, MAPCO was a member of the affiliated
         group, within the meaning of Section 1504 of the Code, of which WMB is
         the common parent (the "WMB Parent Group"); (xv) MAPCO was never a
         member of an affiliated group (within the meaning of Section 1504 of
         the Code) or an affiliated, combined, consolidated, unitary or similar
         group for state, local or foreign Tax purposes, other than the WMB
         Parent Group; (xvi) neither the Company nor any of its Subsidiaries has
         any liability for the Taxes of any person under Treasury Regulations
         Section 1.1502-6 (or any similar provision of state, local or foreign
         law), as a transferee or successor, by contract or otherwise, with the
         exception of MAPL's liability as the successor of MAPCO for Taxes of
         WMB Parent Group; (xvii) neither the Company nor any of its
         Subsidiaries is a party to any contract, agreement, plan or arrangement
         that, individually or in the aggregate, could give rise to the payment
         of any amount that would not be deductible pursuant to Section 280G or
         162(m) of the Code; (xviii) MAPCO did not constitute either a
         "distributing corporation" or a "controlled corporation" in a
         distribution of stock qualifying for tax-free treatment under Section
         355 of the Code in the two years prior to the date of this Agreement or
         in a distribution which could otherwise constitute part of a "plan" or
         "series of related transactions" (within the meaning of Section 355(e)
         of the Code) in conjunction with the transactions contemplated by this
         Agreement; (xix) none of the assets or properties of the Company or any
         of its Subsidiaries is required to be treated as tax-exempt use
         property within the meaning of Section 168(h)(1) of the Code; (xx)
         neither the Company nor any of its Subsidiaries has participated in a
         reportable transaction within the meaning of Treasury Regulations
         Section 1.6011-4T or participated in a transaction that has been
         disclosed pursuant to IRS Announcement 2002-2, 2002-2 I.R.B. 304; and
         (xxi) the Financial Statements include adequate provision under
         generally accepted accounting principles for all unpaid Taxes of the
         Company, its Subsidiaries and any predecessors thereto (including
         MAPCO) as of the date thereof.

                  Section 2.10 Absence of Undisclosed Liabilities.

                            (a) Except as disclosed on Schedule 2.10, the
         Company and its Subsidiaries have no material, individually or in the
         aggregate, indebtedness or liability, absolute or contingent, direct or
         indirect, which is not shown or provided for in the Financial
         Statements other than liabilities incurred or accrued in the ordinary
         course of business (including liens for current Taxes not yet due and
         payable and assessments not in default) since December 31, 2001. Except
         for liabilities arising in connection with its ownership of the Company
         or Oaktree or under the Seminole Purchase Agreement, Seller has no
         indebtedness or liability, absolute or contingent, direct or indirect.

                                       11
<PAGE>

                            (b) None of the Company or any of its Subsidiaries
         is obligated for any "off balance sheet indebtedness" which, but for
         the structure of such indebtedness would be required to be reflected on
         a balance sheet in accordance with generally accepted accounting
         principles.

                  Section 2.11 Real and Personal Property; Sufficiency of Assets
of the Company.

                            (a) Except as set forth on Schedule 2.11(a), the
         Company or one of its Subsidiaries owns marketable fee title to, or
         holds a valid leasehold interest in, or right-of-way easements through
         (collectively, the "Rights of Way") all material real property
         (collectively, "Real Property") used or necessary for the conduct of
         the Company's and its Subsidiaries' businesses, as they are presently
         conducted and as conducted immediately prior to the Contributions, and
         except for the Omnibus Excluded Assets (as defined below), the Company
         or one of its Subsidiaries has good and valid title to all of the
         material tangible assets used or necessary for the conduct of the
         Company's and its Subsidiaries' businesses as they are presently
         conducted and as conducted immediately prior to the Contributions or
         which material tangible assets are reflected on the Financial
         Statements (except for assets sold, consumed or otherwise disposed of
         in the ordinary course of business since the date of the Financial
         Statements) and (ii) all such material Real Property and assets (other
         than Rights of Way) are owned or leased by the Company or its
         Subsidiaries free and clear of all Encumbrances, except for (A)
         Encumbrances set forth on Schedule 2.11(a), (B) liens for current Taxes
         not yet due and payable or for Taxes the validity of which is being
         contested in good faith in appropriate proceedings, (C) rights of way,
         laws, ordinances and regulations affecting building use and occupancy
         (collectively, "Property Restrictions") imposed or promulgated by law
         or any Governmental Authority with respect to Real Property, including
         zoning regulations, provided they do not materially adversely affect
         the current use of the applicable real property, and (D) mechanics',
         carriers', workmen's and repairmen's liens and other Encumbrances of
         any kind, if any, which do not materially detract from the value of or
         materially interfere with the present use of any Real Property or
         assets subject thereto or affected thereby and which have arisen or
         been incurred in the ordinary course of business (clauses (A) through
         (D) above are referred to collectively as "Permitted Encumbrances").
         All Rights of Way used or necessary for the conduct of the Company's
         and its Subsidiaries' businesses, as they are presently conducted and
         as conducted immediately prior to the Contributions, are owned or
         leased by the Company or one of its Subsidiaries, free and clear of all
         Encumbrances created by the Seller, any affiliate of the Seller, the
         Company or any Subsidiary of Company, except for the Permitted
         Encumbrances.

                            (b) The Pipeline Systems are contiguous to all
         points of delivery and receipt, except for such failures to be
         contiguous that, individually or in the aggregate, would not reasonably
         be expected to have a Material Adverse Effect.

                                       12
<PAGE>

                            (c) There are no material structural defects
         relating to any of the improvements to the Real Property (including,
         without limitation, the Pipeline Systems) and all tangible assets and
         seasonal property used or necessary for the conduct of the Company's
         and its Subsidiaries' businesses, as they are presently conducted and
         as conducted immediately prior to the Contributions, are in good
         operating condition, ordinary wear and tear and obsolescence excepted.
         To the Company's knowledge, all improvements to the real property used
         or necessary for the conduct of the Company's and its Subsidiaries'
         businesses, as they are presently conducted and as conducted
         immediately prior to the Contributions, do not encroach in any respect
         on property of others (other than encroachments that would not
         materially impair the operations of the Company and its Subsidiaries
         currently conducted thereon).

                            (d) Except as set forth on Schedule 2.11(d) and
         except for the Omnibus Excluded Assets, the assets owned, leased or
         licensed by the Company and its Subsidiaries constitute all of the
         assets and rights used by the Seller, the Seller's affiliates, the
         Company and its Subsidiaries to conduct the businesses of the Company
         and its Subsidiaries and the operation of the Pipeline Systems and the
         Terminals and Storage Assets as they are presently conducted and as
         conducted immediately prior to the Contributions.

                            (e) Except as set forth on Schedule 2.11(e), there
         is no pending or, to the Seller's knowledge, threatened condemnation of
         any part of the Real Property used or necessary for the conduct of the
         Company's and its Subsidiaries' businesses, as they are presently
         conducted and as conducted immediately prior to the Contributions, by
         any Governmental Authority which would materially adversely affect the
         Company's or its Subsidiaries' use of such Real Property.

                  Section 2.12 Regulatory Matters.

                            (a) None of the Company or any of its Subsidiaries
         is a "Natural Gas Company" as that term is defined in Section 2 of the
         Natural Gas Act ("NGA"). None of the Company or its Subsidiaries is a
         "public utility company," "holding company" or "subsidiary" or
         "affiliate" of a holding company as such terms are defined in the
         Public Utility Holding Company Act of 1935 (the "1935 Act"). No
         approval of (i) the Securities and Exchange Commission under the 1935
         Act or (ii) FERC under the NGA, the Interstate Commerce Act ("ICA") or
         the Federal Power Act is required in connection with (x) the
         Reorganization Transactions, (y) the execution of this Agreement by the
         Seller or (z) the performance of the transactions contemplated hereby
         by the Seller.

                            (b) MAPL is subject to regulation under Chapter 1 of
         the ICA. MAPL is in material compliance with all applicable provisions
         of the ICA and all rules and regulations promulgated by FERC pursuant
         thereto. MAPL is in material compliance with all orders issued by FERC
         that pertain to terms and

                                       13
<PAGE>

         conditions and rates charged for services.

                            (c) The Company and its Subsidiaries have all
         licenses, permits and authorizations (other than licenses or permits
         for the use of land) issued or granted by Governmental Authorities that
         are necessary for the conduct of the Company's and its Subsidiaries'
         businesses, as they are presently conducted and as conducted
         immediately prior to the Contributions, except for such failures that,
         individually or in the aggregate, would not reasonably be expected to
         have a Material Adverse Effect.

                  Section 2.13 Intellectual Property.

                            (a) Except as set forth on Schedule 2.13(a), and as
         may be identified during development of the IT Migration Plan (as
         defined in Section 4.12 below), and for such matters as would not have
         a Material Adverse Effect, each of the Company and its Subsidiaries
         owns all right, title and interest in and to, or has a valid and
         enforceable license or other right to use, all the Intellectual
         Property (as defined below) used by the Company in connection with its
         business, which represents all Intellectual Property rights necessary
         for the Company to conduct its business as presently conducted.

                            (b) Neither the Company nor any of its Subsidiaries
         has materially violated, infringed upon or unlawfully or wrongfully
         used the intellectual property of others, and neither of the Company's
         nor any of its Subsidiaries' Intellectual Property or any related
         rights as used in the businesses now or heretofore conducted by the
         Company or any of its Subsidiaries, materially infringes upon or
         otherwise materially violates the rights of others, nor has any person
         or Governmental Authority asserted in writing a material claim of such
         infringement or misuse or initiated (or indicated in writing any
         present or future intention to initiate) any material proceeding with
         respect to such Intellectual Property.

                            (c) Except as set forth on Schedule 2.13(c), neither
         the Company nor any of its Subsidiaries will from and after the Closing
         be obligated to make any payments for royalties, fees or otherwise to
         any person in connection with any of the Company's or any of its
         Subsidiaries' Intellectual Property. None of the Seller, the Company or
         any of its Subsidiaries is aware of any infringement of the Company's
         or any of its Subsidiaries' Intellectual Property, and there are no
         pending infringement actions against another for infringement of the
         Company's or any of its Subsidiaries' Intellectual Property or theft of
         trade secrets.

                            (d) The only representations and warranties given in
         respect of Intellectual Property and matters and agreements relating
         thereto are those contained in this Section 2.13, and none of the other
         representations and warranties shall be deemed to constitute, directly
         or indirectly, a representation and warranty in respect of Intellectual
         Property and matters or agreements relating

                                       14
<PAGE>

         thereto.

                            (e) As used in this Agreement, "Intellectual
         Property" shall mean the trademarks, service marks, trade names,
         inventions, trade secrets, copyrights and domain names used in
         connection with the Company's or its Subsidiaries' businesses.

                   Section 2.14 Compliance with Law. Except as relates to Tax
matters (which are provided for in Section 2.9), NGA, ICA and the 1935 Act
matters (which are provided for in Section 2.12), or environmental, health and
safety matters (which are provided for in Section 2.21) and except as set forth
on Schedule 2.14, the operations of the Company, its Subsidiaries and their
respective Assets have been conducted in material compliance since December 31,
2001, with all applicable material laws, licenses, regulations, orders and other
material requirements of all Governmental Authorities having jurisdiction over
the Company and any Subsidiary and their assets, properties and operations.
Except as relates to Tax matters (which are provided for in Section 2.9), NGA,
ICA and the 1935 Act matters (which are provided for in Section 2.12) or
environmental, health and safety matters (which are provided for in Section
2.21), none of the Seller, the Seller's affiliates, the Company or its
Subsidiaries has materially violated, been charged with materially violating or,
to the knowledge of Seller or any of its affiliates, been threatened with a
charge of materially violating of any such law, license, regulation, order or
other legal requirement, or are in material default with respect to any material
order, writ, judgment, award, injunction or decree of any Governmental
Authority, in each case, as applicable to the Company, its Subsidiaries or any
of the Company's and its Subsidiaries' assets, properties or operations.

                   Section 2.15 Litigation. Except as set forth on Schedule
2.15, there are no Legal Proceedings (as hereinafter defined) pending or, to the
knowledge of the Seller, the Seller's affiliates, the Company or its
Subsidiaries, threatened against or involving the Seller, any of the Seller's
affiliates, the Company or any of its Subsidiaries that, individually or in the
aggregate, are reasonably likely to:

                            (a) incur damages or costs to the Company or any of
         its Subsidiaries in excess of $500,000;

                            (b) have a Material Adverse Effect; or

                            (c) materially impair or delay the ability of the
         Seller to perform their obligations under this Agreement or consummate
         the transactions contemplated by this Agreement.

         Except as set forth on Schedule 2.15, there is no order, judgment,
injunction or decree of any Governmental Authority outstanding against the
Seller, the Company or any of its Subsidiaries or against any of the Seller's
affiliates with respect to the Assets that, individually or in the aggregate,
would have any effect referred to in the foregoing clauses (a) and (b). "Legal
Proceeding" shall mean any judicial, administrative or arbitral actions, suits,
proceedings (public or private), investigations or governmental proceedings

                                       15
<PAGE>

before any Governmental Authority.

                   Section 2.16 Contracts. Except for Commitments (as defined
below in Section 2.16(o)) listed on Schedule 2.13(a) or Schedule 2.18(a),
Schedule 2.16 sets forth (subject to the dollar amount limitations of clauses
(b) or (c) below) a true and complete list of the following contracts,
agreements, instruments and commitments to which the Company or any of its
Subsidiaries is a party or otherwise relating to or affecting any of the Assets
or the operations of the Company or any of its Subsidiaries, whether written or
oral:

                            (a) any material contracts, agreements and
         commitments not made in the ordinary course of business;

                            (b) contracts calling for payments by or to the
         Company or any of its Subsidiaries of amounts greater than $1,000,000;

                            (c) contracts, loan agreements, letters of credit,
         repurchase agreements, mortgages, security agreements, guarantees,
         pledge agreements, trust indentures and promissory notes and similar
         documents relating to the borrowing of money or for lines of credit;

                            (d) agreements with respect to the sharing or
         allocation of Taxes or Tax costs;

                            (e) agreements for the sale of any material assets,
         property or rights other than in the ordinary course of business or for
         the grant of any options or preferential rights to purchase any
         material assets, property or rights;

                            (f) documents granting any power of attorney with
         respect to the affairs of the Company or its Subsidiaries;

                            (g) suretyship contracts, performance bonds, working
         capital maintenance, support agreements, contingent obligation
         agreements and other forms of guaranty agreements;

                            (h) any material contracts or commitments limiting
         or restraining the Company or any Subsidiary from engaging or competing
         in any lines of business or with any person;

                            (i) with respect to natural gas liquids, any
         transportation agreements, product purchase agreements, fractionation
         agreements, processing agreements, balancing agreements,
         interconnection agreements and storage agreements, other than any
         terminaling agreements that are terminable upon notice of one year or
         less;

                            (j) any collective bargaining agreements;

                                       16
<PAGE>

                            (k) any contracts between the Company or its
         Subsidiaries, on the one hand, and the Seller or its affiliates (other
         than the Company or its Subsidiaries), on the other hand;

                            (l) any indemnification agreements not made in the
         ordinary course of business;

                            (m) any material partnership, joint venture or
         similar agreements;

                            (n) capital leases; and

                            (o) all amendments, modifications, extensions or
         renewals of any of the foregoing (the types of contracts, agreements
         and documents described in subsections (a) through (o) are hereinafter
         referred to collectively as the "Commitments" and individually as a
         "Commitment").

         Each Commitment is valid, binding and enforceable against the Company
and/or each Subsidiary of the Company that is a party thereto in accordance with
its terms, and in full force and effect on the date hereof (except to the extent
that its enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or other similar law affecting the enforcement of creditors'
rights generally or by general equitable principles). The Company and each of
its Subsidiaries, as the case may be, have performed in all material respects
all obligations required to be performed by them under, and are not in material
default or breach of in respect of, any Commitment, and no event has occurred
which, with due notice or lapse of time or both, would constitute such a
default. To the knowledge of the Seller and the Company or any of its
Subsidiaries, no other party to any Commitment is in default in any material
respect thereof, and no event has occurred which, with due notice or lapse of
time or both, would constitute such a default. The Seller has made available to
the Buyer or its representatives true and complete originals or copies of all
the Commitments and a copy of every material default notice received by the
Seller or the Company or any of its Subsidiaries during the past one year with
respect to any of the Commitments.

                   Section 2.17 Books and Records of the Company. The books of
account, minute books, record books, and other records of the Company and its
Subsidiaries, all of which have been made available to the Buyer or its
representatives, are complete and correct in all material respects.

                   Section 2.18 Employee Plans.

                            (a) Except as set forth in Schedule 2.18(a), neither
         the Company nor any of its Subsidiaries' sponsors or maintains or has
         any liability or obligation with respect to, and at any time during the
         past five years or, if longer, for any period for which an applicable
         statute of limitations has not expired, has not sponsored, maintained
         or had any liability or obligation with respect to, any "employee
         benefit plan," as defined under Section 3(3) of the Employee Retirement
         Income Security Act of 1974, as amended ("ERISA"), or any other bonus,
         pension, stock option, stock purchase, benefit,

                                       17
<PAGE>

         welfare, profit-sharing, retirement, disability, vacation, severance,
         hospitalization, insurance, incentive, deferred compensation and other
         similar fringe or employee benefit plans, funds, programs or
         arrangements, whether written or oral ("Employee Plans"), in each of
         the foregoing cases which cover, are maintained for the benefit of, or
         relate to any or all current or former employees of the Company.
         Schedule 2.18(a) sets forth a true and complete list of all Employee
         Plans which cover, are maintained for the benefit of, or relate to any
         or all employees of the Seller or its affiliates who are assigned to or
         perform services primarily for the business of the Company or its
         Subsidiaries (including the business of operating the assets of
         Seminole) (the "Business Employees," and such Employee Plans
         hereinafter referred to as the "Seller Plans"). For purposes of
         determining Business Employees, a person shall be deemed to be
         performing services primarily for the business of the Company or any of
         its Subsidiaries if such person spends at least 50% of their working
         time in the conduct of the business of operations of the Company or its
         Subsidiaries.

                            (b) The Company and its Subsidiaries have no current
         or former employees. Schedule 2.18(b) sets forth a true and complete
         list showing the names of all Business Employees. Except as set forth
         on Schedule 2.18(b), there are no contracts, agreements, plans or
         arrangements covering any Business Employee with "change of control",
         severance or similar provisions that would be triggered as a result of
         the consummation of this Agreement or that could otherwise result in
         liability to the Company or its Subsidiaries. To the Seller's and the
         Company's knowledge, no Business Employee is obligated under any
         contract (including licenses, covenants or commitments of any nature)
         or other agreement, or subject to any judgment, decree or order of any
         court or administrative agency, that would interfere with the use of
         such employee's efforts to promote the interests of the Company or the
         Buyer or that would conflict with the Company's or its Subsidiaries'
         business as conducted or proposed to be conducted.

                            (c) None of the employees who provide services to
         the Company or its Subsidiaries are covered by collective bargaining
         agreements and, to the Seller's knowledge, there are no union or labor
         organization efforts respecting such employees.

                            (d) Neither the Company nor any of its Subsidiaries
         will have any liability to any person for compensation pursuant to
         employment or termination of employment as a result of consummating the
         transactions contemplated by this Agreement.

                  Section 2.19 Insurance.

                            (a) Schedule 2.19 sets forth a true and complete
         list of all policies of property and casualty insurance, including
         crime insurance, liability and casualty insurance, property insurance,
         business interruption insurance, workers' compensation, excess or
         umbrella liability insurance and any other type of property and
         casualty insurance insuring the properties, assets, employees and/or
         operations of the Company or its Subsidiaries (collectively, the
         "Policies"). Upon request, the Seller will make available to the Buyer
         certificates of insurance and insurance summaries from the insurance
         broker evidencing the existence of

                                       18
<PAGE>

         the Policies. Except as set forth on Schedule 2.19, all such polices
         are in full force and effect. All premiums payable under such Policies
         have been paid in a timely manner and the Seller, the Seller's
         affiliates, the Company and the Company's Subsidiaries have complied
         fully with the terms and conditions of all such Policies.

                            (b) Neither the Company nor any of its Subsidiaries
         is in default under any provisions of the Policies, and there is no
         claim by the Seller, the Seller's affiliates, the Company or any
         Subsidiary of the Company or any other person pending under any of the
         Policies as to which coverage has been questioned, denied or disputed
         by the underwriters or issuers of such Policies. Except as set forth on
         Schedule 2.19, none of the Seller, the Seller's affiliates, the Company
         or any Subsidiary of the Company has received written notice from an
         insurance carrier issuing any Policies that alteration of any equipment
         or any improvements located on Real Property, purchase of additional
         equipment, or modification of any of the methods of doing business of
         the Company or its Subsidiaries, will be required or suggested after
         the date hereof.

                  Section 2.20 Transactions with Directors, Officers and
Affiliates. Except as set forth on Schedule 2.20 and for intercompany
transactions in the ordinary course of business, since December 31, 2001, there
have been no transactions between the Company or its Subsidiaries and any
director, officer, employee, stockholder, member or other "affiliate" (as such
term is defined in Rule 405 under the Securities Act of 1933, as amended (the
"Securities Act")) of the Company, or any Subsidiary or the Seller, including,
without limitation, loans, guarantees or pledges to, by or for the Company or
Subsidiary from, to, by or for any of such persons. Except as set forth on
Schedule 2.11(d), neither the Seller nor any of their "affiliates" (as such term
is defined in Rule 405 under the Securities Act) (other than the Company or any
Subsidiary) owns or has any rights in or to any of the assets, properties or
rights used by the Company or its Subsidiaries in the ordinary course of their
business.

                  Section 2.21 Environmental; Health and Safety Matters.

                            (a) Except as set forth on Schedule 2.21:

                                    (i) the Company and its Subsidiaries and
         their respective operations and the Assets are in material compliance
         with all applicable Environmental Laws, and have been in material
         compliance with Environmental Laws and, in the case of pipeline safety,
         prudent industry practices, except for non-compliance that would not
         reasonably be expected to result in the Company or its Subsidiaries
         incurring material liabilities under applicable Environmental Laws;

                                    (ii) none of the Seller, the Company or its
         Subsidiaries has received any written request for information, or has
         been notified that it is a potentially responsible party, under CERCLA
         (as hereinafter defined) or any similar state law with respect to any
         on-site or

                                       19
<PAGE>

         off-site location for which material liability is currently being
         asserted against them with respect to the activities or operations of
         the Company or its Subsidiaries;

                                    (iii) there are no material writs,
         injunctions, decrees, orders or judgments outstanding, or any actions,
         suits, proceedings or investigations pending or to their knowledge
         threatened, involving the Company or its Subsidiaries relating to (A)
         their compliance with any Environmental Law, or (B) the release,
         disposal, discharge, spill, treatment, storage or recycling of
         Hazardous Materials into the environment at any location which would
         reasonably be expected to result in the Company or any Subsidiary
         incurring any material liability under Environmental Laws;

                                    (iv) the Company and its Subsidiaries have
         obtained, currently maintain and are in material compliance with all
         material licenses which are required under Environmental Laws for the
         operation of their respective businesses (collectively, "Environmental
         Permits"), all such material Environmental Permits are in effect and no
         appeal nor any other action is pending to revoke any such material
         Environmental Permit;

                                    (v) there have been no Releases of Hazardous
         Materials at any current or former property owned, leased or operated
         by the Company or its Subsidiaries that are reasonably likely to result
         in material liabilities under applicable Environmental Laws after the
         Closing Date;

                                    (vi) there have been no ruptures in the
         Pipeline Systems resulting in injury, loss of life, or material
         property damage, except to the extent that any liabilities or costs
         arising as a result of such ruptures have been fully resolved so that
         the Seller does not expect that the Company or its Subsidiaries will
         incur material liabilities or costs after the Closing Date; and

                                    (vii) to the knowledge of the Seller and its
         affiliates, there are no defects, corrosion or other damage to any of
         the Pipeline Systems that would create a material risk of pipeline
         integrity failure.

                            (b) The following terms shall have the following
         meanings:

         "Environmental Claim" shall mean any notice of violation, action,
claim, lien, demand, abatement or other order or directive (conditional or
otherwise) by any person or Governmental Authority for personal injury
(including sickness, disease or death), tangible or intangible property damage,
damage to the environment (including natural

                                       20
<PAGE>

resources), nuisance, pollution, contamination, trespass or other adverse
effects on the environment, or for fines, penalties or restrictions resulting
from or based upon (i) the existence, or the continuation of the existence, of a
Release (including, without limitation, sudden or non-sudden accidental or
non-accidental Releases) of, or exposure to, any Hazardous Material, odor or
audible noise; (ii) the transportation, storage, treatment or disposal of
Hazardous Materials; or (iii) the violation, or alleged violation, of any
Environmental Laws or Permits issued thereunder.

         "Environmental Law" shall mean current local, county, state, federal,
and/or foreign law (including common law), statute, code, ordinance, rule,
regulation or other legal obligation relating to the protection of the
environment or natural resources, including, without limitation, the
Comprehensive Environmental Response Compensation and Liability Act (42 U.S.C.
section 9601 et seq.), as amended ("CERCLA"), the Resource Conservation and
Recovery Act (42 U.S.C. section 6901 et seq.), as amended ("RCRA"), the Federal
Water Pollution Control Act (33 U.S.C. section 1251 et seq.), as amended, the
Clean Air Act (42 U.S.C. section 7401 et seq.), as amended, the Toxic Substances
Control Act (15 U.S.C. section 2601 et seq.), as amended, the Occupational
Safety and Health Act (29 U.S.C. section 651 et seq.), as amended, the Federal
Natural Gas Pipeline Safety Act of 1968, as amended, the Hazardous Materials
Transportation Act (49 U.S.C. section 1801 et seq.), as amended, the Oil
Pollution Act (33 U.S.C. section 2701 et seq.), the Safe Drinking Water Act (42
U.S.C. section 300(f) et seq.), as amended, analogous state, tribal or local
laws, and any similar, implementing or successor law, and any amendment, rule,
regulation, or directive issued thereunder.

         "Hazardous Material" shall mean any substance, material or waste which
is regulated by any Environmental Law as hazardous, toxic, a pollutant,
contaminant or words of similar meaning including, without limitation,
petroleum, petroleum products, asbestos, urea formaldehyde and polychlorinated
biphenyls.

         "Release" shall mean any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, dumping or disposing of a
Hazardous Material.

                            (c) The representations set forth in this Section
         2.21 are the Seller's sole and exclusive representation and warranties
         related to any environmental matters.

                  Section 2.22 Brokers. Neither Seller nor any of Seller's
affiliates has employed the services of a broker or finder in connection with
this Agreement or any of the transactions contemplated hereby for which the
Buyer, Buyer's affiliates, the Company or any of the Subsidiaries of the Company
would be responsible for paying any fee, commission or other amount.

                  Section 2.23 No Default. The Company and each of its
Subsidiaries is not in default under, and no condition exists that with notice
or lapse of time or both would constitute a default under (a) any judgment,
order or injunction of any court, arbitrator or governmental agency or (b) any
other agreement, contract, lease, license or

                                       21
<PAGE>

other instrument, which default, in the case of either clause (a) or (b), might
reasonably be expected to have a Material Adverse Effect or prevent, hinder or
delay consummation of the transactions contemplated by this Agreement.

                  Section 2.24 Contemporaneous Transactions. The Contemporaneous
Transactions (as hereinafter defined) have been consummated. The term
"Contemporaneous Transactions" shall mean that certain Consent and Fourth
Amendment of even date herewith to that certain Credit Agreement dated as of
July 25, 2000 among The Williams Companies, Inc., Northwest Pipeline
Corporation, Transcontinental Gas Pipe Line Corporation, and Texas Gas
Transmission Corporation, as Borrowers, the financial institutions from time to
time party thereto, The Chase Manhattan Bank and Commerzbank AG, as
Co-Syndication Agents, Credit Lyonnais New York Branch, as Documentation Agent,
and Citibank, N.A., as Agent, as amended by a letter agreement dated as of
October 10, 2000, by a Waiver and First Amendment dated as of January 31, 2001,
by a Second Amendment to Credit Agreement dated as of February 7, 2002, by a
Third Amendment dated as of March 3, 2002.

                  Section 2.25 Reserved.

                  Section 2.26 Reserved

                  Section 2.27 Financial Derivatives/Hedging Agreements. Except
as set forth on Schedule 2.27 hereto, neither the Company nor any of its
Subsidiaries are parties to or otherwise are bound by any Financial
Derivative/Hedging Agreement. For purposes of this Section 2.27, Financial
Derivative/Hedging Agreement includes (a) any transaction (including an
agreement with respect thereto) which is a rate swap transaction, basis swap,
forward rate transaction, commodity swap, commodity option, equity or equity
index swap, equity or equity index option, bond option, interest rate option,
foreign exchange transaction, cap transaction, floor transaction, collar
transaction, currency swap transaction, cross-currency rate swap transaction,
currency option or any other similar transaction (including any option with
respect to any of these transactions) and (b) any combination of these
transactions.

                  Section 2.28 Certain Commercial Contracts. The Seller has or
has caused its affiliates to transfer to MAPL all of the Seller's and its
affiliates' rights under those contracts set forth in Schedule 2.28.

                                   ARTICLE III

                   REPRESENTATIONS AND WARRANTIES OF THE BUYER

         The Buyer hereby represents and warrants as follows:

                  Section 3.1 Organization. The Buyer is a limited partnership
duly formed, validly existing and in good standing under the laws of the state
of Delaware and has all requisite power and authority to own its properties and
assets and to conduct its business as now conducted. The Buyer is duly qualified
to do business as a foreign entity

                                       22
<PAGE>

in every jurisdiction where the character of the properties owned or leased by
the Buyer or the nature of the business conducted by the Buyer makes such
qualifications necessary.

                  Section 3.2 Validity of Agreement. The Buyer has the power to
enter into this Agreement and to carry out its obligations hereunder. The
execution and delivery of this Agreement and the performance of the Buyer's
obligations hereunder have been duly authorized by the Buyer, and no other
proceedings on the part of the Buyer are necessary to authorize such execution,
delivery and performance. This Agreement has been duly executed by the Buyer and
constitutes the valid and binding obligation of the Buyer enforceable against
the Buyer in accordance with its terms (except to the extent that its
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or other similar law affecting the enforcement of creditors'
rights generally or by general equitable principles).

                  Section 3.3 No Conflict or Violation; No Defaults. The
execution, delivery and performance by the Buyer of this Agreement does not and
will not violate or conflict with any provision of its Organizational Documents
and does not and will not violate any applicable provision of law, or any order,
judgment or decree of any Governmental Authority, nor violate or result in a
breach of or constitute (with due notice or lapse of time or both) a default
under any contract, lease, loan agreement, mortgage, security agreement, trust
indenture or other agreement or instrument to which the Buyer is a party or by
which it is bound or to which any of its properties or assets is subject, nor
result in the creation or imposition of any Encumbrance upon any of its
properties or assets where such violations, breaches or defaults in the
aggregate would have a material adverse effect on the transactions contemplated
hereby or on the assets, properties, business, operations or financial condition
of the Buyer.

                  Section 3.4 Consents and Approvals. Except as set forth on
Schedule 3.4, no consent, approval, authorization, license, order or permit, or
declaration, filing or registration with, or notification to any Governmental
Authority or any other person, is required to be obtained by the Buyer or the
Buyer's affiliates in connection with the execution and delivery of this
Agreement by the Buyer or the performance of the Buyer's obligations hereunder.

                  Section 3.5 Brokers. None of the Buyer or any of its
affiliates has employed the services of an investment broker, financial advisor,
broker or finder in connection with the Agreement or any of the transactions
contemplated hereby for which the Seller or any affiliate of the Seller would be
responsible for paying any fee, commission or other amount.

                  Section 3.6 Financial Ability. The Buyer has sufficient
immediately available funds, in cash, on the date hereof to pay the Purchase
Price, as adjusted.

                                       23
<PAGE>

                                   ARTICLE IV

                                    COVENANTS

                  Section 4.1 Reserved.

                  Section 4.2 Reserved.

                  Section 4.3 Employee Matters.

                            (a) The Buyer may offer to employ such Business
         Employees under such terms and conditions as the Buyer may determine,
         in its sole discretion, subject, however, to the terms and provisions
         of this Section 4.3. All Business Employees that accept the Buyer's
         offer of employment shall become the Buyer's employees as of the
         Transfer Date and all such Business Employees are hereinafter referred
         to as the "Transferred Employees." The "Transfer Date" for all
         Transferred Employees shall be the date upon which the Transition
         Services Agreement terminates pursuant to its terms.

                            (b) Transferred Employees shall be eligible to
         participate in employee benefit plans and programs of the Buyer on the
         same basis as other similarly situated employees of the Buyer.

                            (c) Each Transferred Employee shall, without
         duplication of benefits, be given credit for all service with the
         Sellers prior to the Transfer Date, using the same methodology used by
         the Sellers as of immediately prior to the Transfer Date for crediting
         service and determining levels of benefits under all employee benefit
         plans, programs and arrangements maintained by or contributed to by the
         Buyer or its affiliates (including, without limitation, the Company) in
         which the Transferred Employees become participants for purposes of
         eligibility to participate and vesting.

                            (d) The Buyer will, or will cause the Company to,
         (i) waive all limitations as to preexisting conditions exclusions and
         waiting periods with respect to participation and coverage requirements
         applicable to the Transferred Employees under any welfare benefit plans
         that such employees may be eligible to participate in after the
         Transfer Date, other than limitations or waiting periods that are
         already in effect with respect to such employees and that have not been
         satisfied as of the Transfer Date under any welfare plan maintained for
         the Transferred Employees immediately prior to the Transfer Date, and
         (ii) provide each Transferred Employee with credit for any co-payments
         and deductibles paid prior to the Transfer Date in satisfying any
         applicable deductible or out-of-pocket requirements under any welfare
         plans that such employees are eligible to participate in after the
         Transfer Date.

                            (e) Effective as of the Transfer Date, Transferred
         Employees shall become fully vested in their accrued benefits under the
         401(k) plan maintained by the Seller on behalf of such Transferred
         Employees (the

                                       24
<PAGE>

         "Seller Savings Plan") and distributions of such account balances shall
         be made available to such Transferred Employees as soon as reasonably
         practicable following the Transfer Date, in accordance with, the
         provisions of the Seller Savings Plan and applicable law. Thereafter,
         the Buyer shall accept rollover contributions from the Seller Savings
         Plan into a defined contribution or 401(k) plan maintained by the Buyer
         (the "Buyer Savings Plan") in accordance with the terms of such plan of
         the account balances distributed to the Transferred Employees from the
         Seller Savings Plan.

                            (f) The Buyer and the Seller shall cooperate as
         necessary to effectuate the provisions of this Section 4.3, including
         such steps as may reasonably be required to ensure an orderly
         transition of benefits coverage with respect to the Transferred
         Employees from the Seller Plans to the Buyer's plans.

                            (g) Each Transferred Employee shall, without
         duplication of benefits, be given credit for all accrued but unused
         paid-time-off under the Seller's paid-time-off program as of the
         Transfer Date, using the same methodology used by the Seller
         immediately prior to the Transfer Date for crediting service and
         determining the amount of such paid-time-off benefits.

                            (h) Except as specifically provided in this Section
         4.3, the Buyer and its affiliates (including the Company and its
         Subsidiaries) are not assuming any liability or obligations of the
         Seller or its affiliates with respect to any employee or former
         employee of the Seller or any of its affiliates with respect to any
         Seller Plans.

                  Section 4.4 Reserved.

                  Section 4.5 Further Assurances. Upon the request of the Buyer
at any time after the Closing Date, the Seller will promptly execute and deliver
such further instruments of assignment, transfer, conveyance, endorsement,
direction or authorization and other documents as the requesting party or
parties or its or their counsel may reasonably request in order to perfect title
of the Buyer and its successors and assigns to the Subject Membership Interest
or otherwise to effectuate the purposes of this Agreement. If it is determined
following the Closing that record and/or beneficial title to any of the Assets,
are not held by the Company or its Subsidiaries but rather is held by Seller or
any of its affiliates, Seller agrees to and to cause its affiliates to execute
such documents, agreements and instruments and take such action as may be
reasonably required to cause such title to be effectively transferred and
conveyed from Seller or its affiliates to the Company or its Subsidiaries free
and clear of any Encumbrances.

                  Section 4.6 Reserved.

                  Section 4.7 Reserved.

                  Section 4.8 Reserved.

                                       25
<PAGE>

                  Section 4.9 Non-Solicitation of Employees. During the period
commencing on the date of this Agreement and ending on the second anniversary of
the Closing Date hereunder, neither the Seller nor any affiliate thereof shall
for themselves or on behalf of or in conjunction with any person, directly or
indirectly, solicit, endeavor to entice away from the Buyer or its affiliates
(including the Company or its Subsidiaries), or otherwise directly or indirectly
interfere with the relationship of the Buyer or its affiliates (including the
Company or its Subsidiaries) with any person who, to the knowledge of the
Seller, is employed by the Buyer or its affiliates (including the Company or its
Subsidiaries) and, directly or indirectly, involved with the business or
operations of the Company and its Subsidiaries; provided, however, neither the
Seller nor any affiliates thereof shall be precluded from soliciting or hiring
any such employee:

                            (a) who initiates discussions regarding such
         employment without any direct or indirect solicitation by the Seller or
         its affiliates;

                            (b) whose employment with the Company or its
         Subsidiaries has been terminated prior to commencement of employment
         with the Seller or its affiliates; or

                            (c) who responds to a general solicitation of
         employment not specifically addressed to such employees.

         Notwithstanding the foregoing, the Seller may continue to employ each
Business Employee until such time as such Business Employee becomes a
Transferred Employee.

                  Section 4.10 Reserved.

                  Section 4.11 Tax Covenants.

                            (a) Except to the extent such Taxes are reflected in
         the Final Working Capital Statement, the Seller shall be liable for,
         and shall indemnify and hold the Buyer and its affiliates harmless from
         (i) all liability for Taxes of each of the Company, its Subsidiaries
         and any predecessors thereto (including MAPCO) for all taxable periods
         ending on or before the Closing Date; (ii) the portion, determined as
         described below, of any Taxes which are incurred by the Company, its
         Subsidiaries or any predecessors thereto (including MAPCO) for any
         taxable period which begins before and ends after the Closing Date (a
         "Straddle Period") which is allocable to the portion of the Straddle
         Period occurring on or before the Closing Date (the "Pre-Closing
         Period"); (iii) all liability imposed upon the Company or any of its
         Subsidiaries on account of the inclusion of the Company, its
         Subsidiaries or any predecessors thereto (including MAPCO) in a
         consolidated, combined, unitary or similar group, for any period or
         portion of a period prior to Closing and (iv) any Taxes resulting from
         the Contributions. The portion of the Taxes for a Straddle Period which
         are allocable to a Pre-Closing Period shall be determined, in the case
         of property, ad valorem or franchise Taxes (which are not measured by,
         or based upon, net income), on a per

                                       26
<PAGE>

         diem basis and, in the case of other Taxes, by assuming that the
         Pre-Closing Period is a separate taxable period and by taking into
         account the taxable events during such period.

                            (b) The Seller shall prepare and timely file (or
         cause to be prepared and timely filed), on a basis consistent with
         prior Tax Returns, all Tax Returns with the appropriate Federal, state,
         local and foreign governmental agencies relating to the Company, its
         Subsidiaries and any predecessors thereto (including MAPCO) for taxable
         periods ending on or prior to the Closing Date and shall timely pay all
         Taxes required to be paid with respect to such Tax Returns. The Buyer
         shall prepare and timely file (or cause to be prepared and timely
         filed), on a basis consistent with prior Tax Returns, all Tax Returns
         for Straddle Periods required to be filed by the Company or any of its
         Subsidiaries and shall timely pay all Taxes required to be paid with
         respect to such Straddle Tax Returns, provided, however, that the
         Sellers shall promptly reimburse the Buyer for the portion of such Tax
         that relates to the Pre-Closing Period. The Seller shall furnish to the
         Buyer all information and records reasonably requested by the Buyer for
         use in preparation of any Tax Returns. The Buyer and the Seller agree
         to cause the Company and each of its Subsidiaries after the Closing
         Date to file all Tax Returns for any Straddle Period on the basis that
         the relevant taxable period ended as of the close of business on the
         Closing Date, to the extent permitted by applicable law. The Seller's
         covenants in respect of responsibility for Taxes as set forth above in
         this Section 4.11(b) are in no way intended to be duplicative of the
         adjustments reflected in the Purchase Price pursuant to Section 1.6.

                            (c) The Seller shall cause any tax sharing agreement
         or similar arrangement with respect to Taxes involving the Company, its
         Subsidiaries or any predecessors thereto (including MAPCO) to be
         terminated on or before the Closing, to the extent any such agreement
         or arrangement relates to the Company or its Subsidiaries or any
         predecessors thereto (including MAPCO), and after the Closing Date
         neither the Company nor any of its Subsidiaries shall have any
         obligation to make any payment under any such agreement or arrangement.

                            (d) Notwithstanding anything to the contrary in this
         Section 4.11, all excise, sales, use, transfer (including real property
         transfer or gains), stamp, documentary, filing, recordation and other
         similar taxes, together with any interest, additions or penalties with
         respect thereto and any interest in respect of such additions or
         penalties, resulting directly from the transactions contemplated by
         this Agreement (the "Transfer Taxes"), shall be borne by the party on
         which such Transfer Taxes are imposed by applicable law.
         Notwithstanding anything to the contrary in this Section 4.11, any Tax
         Returns that must be filed in connection with Transfer Taxes shall be
         prepared and filed when due by the party primarily or customarily
         responsible under the applicable local law for filing such Tax Returns,
         and such party shall use reasonable commercial efforts to provide such
         Tax Returns to the other party at least 10 days

                                       27
<PAGE>

         prior to the due date for such Tax Returns.

                            (e) WNGL will cause the MAPL Conversion and the
         Excluded Subsidiaries Distribution to be treated for Federal income tax
         purposes as distributions of the assets and liabilities of MAPCO to
         WNGL pursuant to Section 332 of the Code. The parties agree to treat
         the purchase of the Subject Membership Interest hereunder for Federal
         income tax purposes as a purchase by the Buyer from the Seller of an
         undivided 98% interest in the assets and liabilities of the Company and
         the Subsidiaries (other than the membership interests in the
         Subsidiaries) followed immediately by a contribution by the Buyer and
         the Seller to the Company of their respective undivided 98% and 2%
         interests in such assets and liabilities. The parties agree to treat
         the amount paid by the Buyer to Prudential pursuant to Section 1.4(b)
         for income Tax purposes as additional consideration paid by the Buyer
         to the Seller for such assets.

                            (f) The Buyer and the Seller shall cooperate in good
         faith to agree within 90 days after the Closing to an allocation of the
         Purchase Price and the amount paid pursuant to Section 1.4(b), any
         assumed liabilities and any other relevant items among the assets of
         the Company and its Subsidiaries, in accordance with Section 1060 of
         the Code and Treasury Regulations thereunder and any similar provisions
         of state, local, or foreign law. The Seller and the Buyer agree to
         complete and file their respective IRS Forms 8594 and similar Tax forms
         in accordance with the allocations. The parties further agree that they
         will report the Tax consequences of the purchase and sale hereunder in
         a manner consistent with the allocations and that they will not take
         any positions inconsistent therewith in connection with the filing of
         any Tax Return.

                  Section 4.12 Information Technology.

                            (a) The parties shall each designate representatives
         to a migration team (the "IT Migration Team") that shall be responsible
         for identifying the specific software and hardware necessary for the
         Company and its Subsidiaries to continue their respective operations in
         the manner in which they operate as of the Closing Date (the "IT
         Assets"); provided, the intellectual property rights referenced in
         Schedule 4.12(a) shall be handled between the Seller and the Company
         and its Subsidiaries as reflected in said schedule. The IT Migration
         Team shall also be responsible for developing a detailed plan to
         include cost estimates and timetables for: conversion and loading of
         existing data relating to the assets of the Company and its
         Subsidiaries, integration of the IT Assets into Buyer's information
         technology systems, and transfer or replacement of IT Asset licenses
         and maintenance agreements not currently held in Company's or it's
         Subsidiaries' name (the "IT Migration Plan"). The IT Migration Team
         shall complete the creation of the IT Migration Plan no later than 45
         days after Closing. The time for implementation of the IT Migration
         Plan shall be referred to as the "IT Migration Period."

                            (b) Seller shall and shall cause Seller's affiliates
         to use

                                       28
<PAGE>

         their respective commercially reasonable best efforts to complete the
         implementation of the IT Migration Plan as soon as possible following
         the Closing.

                            (c) On or before the expiration of the IT Migration
         Period, Seller shall, and shall cause its affiliates, at Seller's sole
         option, to either: (i) assign to the Company or its Subsidiaries all of
         their respective right, title and interest in and to the IT Assets,
         including license and contract rights, and secure any consents
         necessary for such assignment and for the use by the Seller and its
         affiliates of the IT Assets on behalf of the Company or the Buyer
         during the IT Migration Period, provided that the IT Assets transferred
         hereunder shall provide the Company and its Subsidiaries with a valid
         and enforceable license or other right to use such IT Assets; or (ii)
         obtain for the Buyer, on commercially reasonable terms, comparable
         replacements for any IT Assets not assigned pursuant to (i) above.
         Except with respect to the transfers/licenses of the CIS, TAS and SCADA
         systems as specified in Schedule 4.12(a), if the Buyer, during the IT
         Migration Period, requests that the Seller transfer third party
         licenses or replace third party software, then the fees for such
         license transfers or replacements shall be borne by the Buyer. Except
         for those fees for which the Buyer is responsible in accordance with
         the preceding sentence, fees for license transfers or replacements
         shall be borne by the Seller (including any fees for the
         licenses/transfers of CIS, TAS and SCADA systems). Labor costs related
         to implementation of the IT Migration Plan shall be borne as follows:
         The Buyer shall be responsible for labor costs of its employees and
         representatives (including any independent contractors employed by the
         Buyer to assist in the IT Migration Plan, and the Seller shall be
         responsible for labor costs of its employees and representatives
         (including any independent contractors employed by the Seller or its
         affiliates to assist in the IT Migration Plan).

                  Section 4.13 Reserved.

                  Section 4.14 Bonds. The Seller shall use its reasonable best
efforts to maintain the Bonds until they are released and replaced by the Buyer.
"Bonds" shall mean all surety bonds, letters of credit, guarantees, cash
collateral, performance bonds and bid bonds issued by the Seller and its
affiliates (other than the Company and its Subsidiaries) on behalf of the
Company or any of its Subsidiaries. The Buyer shall use its reasonable best
efforts to replace and release the Bonds as promptly as reasonably practicable
after the Closing Date but in no event later than 90 days from the Closing Date.
The Buyer shall indemnify, defend and hold harmless the Seller and its
affiliates for any and all liability, loss, damage, cost and expense incurred
under such Bonds in connection with activities performed after the Closing.

                                       29
<PAGE>

                  Section 4.15 Transitional Trademark License. Effective upon
the Closing Date, the Seller and the Seller's affiliates hereby grant to the
Company, the Subsidiaries of the Company and the Buyer a nonexclusive,
nontransferable, royalty-free license, without right to sublicense, to use,
solely in the Company's and its Subsidiaries' businesses as they are presently
conducted, any and all trademarks, service marks, and trade names owned by the
Seller and the Seller's affiliates (other than the Company and its Subsidiaries)
solely to the extent appearing on existing inventory, advertising materials and
property of the Company or its Subsidiaries (such as signage, vehicles, and
equipment) (collectively "Seller's Marks") for a period of six (6) months from
the Closing Date ("License Period"). The Buyer, the Company and its Subsidiaries
may use such existing inventory, advertising materials and property during the
License Period, but shall not create new inventory, advertising materials or
property using Seller's Marks. The Buyer, the Company and its Subsidiaries shall
promptly replace or remove Seller's Marks on inventory, advertising materials
and Property, provided that all such use shall cease no later than the end of
the License Period. The nature and quality of all uses of the Seller's Marks by
the Buyer, the Company and its Subsidiaries shall conform to the Seller's
existing quality standards. Immediately upon expiration of the License Period,
the Buyer, the Company and its Subsidiaries shall cease all further use of
Seller's Marks and shall adopt new trademarks, service marks, and trade names
which are not confusingly similar to Seller's Marks. All rights not expressly
granted in this section with respect to Seller's Marks are hereby reserved. In
the event Buyer, the Company or its Subsidiaries materially breach the
provisions of this section, the Seller may immediately terminate the License
Period upon twenty (20) days written notice.

                  Section 4.16 Non-Software Copyright License. Effective upon
the Closing Date, the Seller, for themselves and on behalf of their affiliates,
hereby grant to the Company, the Subsidiaries of the Company and the Buyer a
nonexclusive royalty-free, perpetual license, without right to sublicense, to
use, copy, modify, enhance, and to upgrade, solely for their internal business
purposes and not as a service bureau, all proprietary manuals, user guides,
standards and operation procedures and similar documents owned by Seller and/or
its Affiliates and used by Company or its Subsidiaries. All copies of the
foregoing must reproduce and include all copyright and other intellectual
property rights notices provided by the Seller.

                  Section 4.17 Intercompany Indebtedness. Immediately prior to
the Closing, the Seller shall (a) pay or cause its affiliates to pay to the
Company and its Subsidiaries all indebtedness for borrowed money owed by the
Seller or any of its affiliates (other than the Company or its Subsidiaries) as
of such time and (b) pay to the Company a capital contribution and cause such
capital contribution to be applied to pay or satisfy all indebtedness for
borrowed money owed by the Company and its Subsidiaries to the Seller or its
affiliates (other than the Company and its Subsidiaries) as of such time.

                  Section 4.18 SEC Required Financial Statements. The Seller, at
its sole cost and expense, shall prepare and cause to be delivered to the Buyer
prior to September 15, 2002, audited and unaudited financial statements of the
Company and its Subsidiaries and their respective operations, in such form and
covering such periods as

                                       30
<PAGE>

may be required by applicable securities laws to be filed with the Securities
and Exchange Commission by the Buyer or its affiliates as a result of or in
connection with the transactions contemplated by this Agreement. Seller shall
further provide and cause its affiliates to provide access to their personnel
and books and records to the extent necessary for the Buyer and its
representatives to confirm and verify the accuracy of such financial statements.

                  Section 4.19 Release of Certain Obligations. The Seller, for
itself and its affiliates, hereby agrees, from and after the Closing, not to
make or allow its affiliates to make any claims against and hereby releases,
acquits and discharges the Company and its Subsidiaries and the Buyer from any
and all claims, demands, obligations or causes of action which the Seller or its
affiliates may have against the Companies or its Subsidiaries or the Buyer out
of the activities of the Company and its Subsidiaries prior to the Closing Date,
including any claims, demands, obligations or causes of action which have arisen
or may arise under any agreements between the Seller or an affiliate of the
Seller (other than the Company or its Subsidiaries), on the one hand, and one or
more of the Company or its Subsidiaries, on the other hand, to the extent that
such agreements have been terminated or have expired in accordance with their
terms on or prior to the Closing or are otherwise required to be terminated by
the provisions of this Agreement. Nothing in this Section 4.19 shall be
interpreted or construed as a release of any claims, demands, obligations or
causes of action pursuant to this Agreement or pursuant to agreements which
continue beyond the Closing or are entered into following the Closing Date.

                  Section 4.20 Delivery of Records. The Seller shall as soon as
possible following the Closing and in any event no later than 30 days following
the Closing deliver to the Buyer all Records (as hereinafter defined) pertaining
to the Company, the Company's Subsidiaries and their businesses. The term
"Records" shall mean all existing land, title, engineering, environmental,
operating, FERC, Department of Transportation and other data (whether electronic
or hard copy), files, documents (including design documents), instruments,
notes, papers, ledgers, journals, reports, abstracts, surveys, maps, books,
records and studies arising out of or relating to the Assets (including the Real
Property) or such businesses and which are held by the Seller or its affiliates
for use in connection with, the ownership, use, operation or maintenance of the
Assets (including the Real Property) or such businesses.

                  Section 4.21 West Texas LPG Pipeline.

                            (a) After the Closing, the Seller and its affiliates
         shall use its reasonable efforts to obtain the agreement of each of the
         limited partners of West Texas LPG Pipeline Limited Partnership ("West
         Texas LPG") to the transfer of MAPL's 0.2% general partner interest in
         West Texas LPG (including all rights, obligations and liabilities
         relating thereto) (the "GP Interest") to WNGL and the release of MAPL's
         liability with respect thereto. The Buyer and the Seller further agree
         that upon obtaining the consent of each of the limited partners to the
         transfer of the GP Interest, the Buyer shall cause MAPL to, in exchange
         for consideration of $1.00, promptly transfer and assign the GP
         Interest to WNGL (it

                                       31
<PAGE>

         being understood that MAPL shall retain all distributions received in
         respect of the GP Interest prior to such transfer).

                            (b) The Seller agrees, at its sole cost and expense,
         to timely perform and pay all of the obligations of MAPL arising in
         connection with the GP Interest. Without prejudice to the Buyer's
         rights under Article VIII, the Seller hereby indemnifies and agrees to
         defend, save and hold the Buyer Indemnified Parties (as defined in
         Section 8.2(a)) harmless for any Loss (as defined in Section 8.2(a))
         suffered by any such Buyer Indemnified Party at any time or from time
         to time arising out of, relating to or resulting from the ownership of
         the GP Interest and/or the operation and maintenance of the assets
         owned by West Texas LPG, in either case, whether relating to periods of
         time prior to or after the Closing.

                  Section 4.22 Farm Fuel Lease.

                            (a) The Buyer and the Seller shall cooperate and use
         all reasonable efforts to obtain (i) the consent of the lessor to the
         assignment to WNGL of that certain Fuel Farm Lease Plot #2, dated
         January 19, 1989, between the Memphis-Shelby County Airport Authority,
         as lessor, and Mid-America Pipeline Company, as lessee (the "Fuel Farm
         Lease"), within 120 days after the Closing, including all rights,
         liabilities and obligations of the lessee thereunder, and (ii) the full
         and unconditional release of Mid-America Pipeline Company and its
         successors and assigns from all liabilities and obligations arising out
         of, relating to or resulting from the Fuel Farm Lease. The Seller is
         entitled to all benefits under such lease and Buyer shall cause MAPL to
         exercise its rights under such lease at the Seller's direction.

                            (b) The Seller agrees, at its sole cost and expense,
         to timely perform and pay all of the obligations of MAPL arising under
         the Fuel Farm Lease. Without prejudice to the Buyer's rights under
         Article VIII, the Seller hereby indemnifies and agrees to defend, save
         and hold the Buyer Indemnified Parties harmless for any Loss suffered
         by any such Buyer Indemnified Party at any time or from time to time
         arising out of, relating to or resulting from the Fuel Farm Lease or
         the liabilities or obligations of the lessee thereunder, in any case,
         whether relating to periods of time prior to or after the Closing,
         including, without limitation, the obligations of the lessee to remove
         any and all improvements installed by it and to restore the leased
         premises to their original condition.

                  Section 4.23 Connection Agreement.

                            (a) The Buyer and the Seller shall cooperate and use
         all reasonable efforts to obtain (i) the consent of the parties to the
         assignment to WNGL of that certain Connection Agreement, dated August
         6, 1984, by and among MAPCO and the Capline System owners referred to
         therein (the "Connection Agreement"), within 120 days after the
         Closing, including all rights, liabilities and obligations of MAPCO
         thereunder, and (ii) the full and

                                       32
<PAGE>

         unconditional release of MAPCO and its successors and assigns from all
         liabilities and obligations arising out of, relating to or resulting
         from the Connection Agreement. The Seller is entitled to all benefits
         under such agreement and Buyer shall cause MAPL to exercise its rights
         under such agreement at the Seller's direction.

                            (b) The Seller agrees, at its sole cost and expense,
         to timely perform and pay all of the obligations of MAPL arising under
         the Connection Agreement. Without prejudice to the Buyer's rights under
         Article VIII, the Seller hereby indemnifies and agrees to defend, save
         and hold the Buyer Indemnified Parties harmless for any Loss suffered
         by any such Buyer Indemnified Party at any time or from time to time
         arising out of, relating to or resulting from the Connection Agreement
         or the liabilities or obligations of MAPCO thereunder, in any case
         whether relating to periods of time prior to or after the Closing,
         including, without limitation, the obligation of MAPCO to remove at its
         sole risk and expense the connection facilities referred to therein
         from the Capline Owners' right-of-way.

                  Section 4.24 Other Agreements.

                            (a) The Seller shall use reasonable efforts to
         transfer and assign that certain Special Provisions Agreement ("Special
         Provisions Agreement) by and between WNGL, fka MAPCO Natural Gas
         Liquids, Inc., and Phillips Chemical Company dated as of October 9,
         1997 to MAPL as soon as possible following the Closing. MAPL shall be
         entitled to all benefits and shall, at its sole cost and expense,
         timely perform and pay all obligations under such agreement from and
         after the Closing. The Seller shall cause WNGL to exercise its rights
         under such agreement at the Buyer's discretion.

                            (b) The Buyer agrees, at its sole cost and expense,
         to timely perform and pay all of the obligations of Seller arising
         under the Special Provisions Agreement. Without prejudice to the
         Seller's rights under Article VIII, the Buyer hereby indemnifies and
         agrees to defend, save and hold the Seller Indemnified Parties harmless
         for any Loss suffered by any such Seller Indemnified Party at any time
         or from time to time arising out of, relating to or resulting from the
         Special Provisions Agreement or the liabilities or obligations of
         Seller thereunder, in any case whether relating to periods of time
         prior to or after the Closing.

                                   ARTICLE V

                                    RESERVED.

                                       33
<PAGE>

                                   ARTICLE VI

                                    RESERVED.

                                  ARTICLE VII

                                    RESERVED.

                                  ARTICLE VIII

                                 INDEMNIFICATION

                  Section 8.1 Survival. The respective representations and
warranties of the parties hereto contained herein or in any certificates or
other documents delivered pursuant to this Agreement on the Closing shall
survive the Closing for a period of 18 months following the Closing Date;
provided however, that the representations and warranties set forth in Section
2.2 (Capitalization; Title) shall survive indefinitely, the representations and
warranties set forth in Section 2.21 (Environmental; Health and Safety Matters)
shall survive until the fifth anniversary of the Closing Date and the
representations and warranties in Section 2.9 (Taxes) shall survive for a period
equal to the applicable statute of limitations (including any extensions
thereof). The respective covenants and agreements of the parties hereto
contained herein or in any certificates or other documents delivered pursuant to
this Agreement on the Closing shall survive the Closing for indefinitely.

                  Section 8.2 Indemnification Coverage.

                            (a) Notwithstanding the Closing or the delivery of
         the Subject Membership Interest and the Golden Unit, and regardless of
         any investigation at any time made by or on behalf of the Buyer or of
         any knowledge or information that the Buyer may have the Seller hereby
         indemnifies and agrees to defend, save and hold the Buyer, the Company,
         the Subsidiaries of the Company and each of their officers, directors,
         employees, agents and affiliates (other than the Seller) (collectively,
         the "Buyer Indemnified Parties") harmless for any damage, judgment,
         fine, penalty, demand, settlement, liability, loss, cost, Tax, expense
         (including reasonable attorneys', consultants' and experts' fees),
         claim or cause of action (each, a "Loss") suffered by any such Buyer
         Indemnified Party at any time or from time to time arising out of,
         relating to or resulting from any of the following:

                                    (i) any breach or inaccuracy in any
         representation by the Seller or the breach of any warranty by the
         Seller contained in this Agreement or any certificates or other
         documents delivered pursuant to this Agreement on Closing;

                                       34
<PAGE>

                                    (ii) any failure by the Seller to perform or
         observe any term, provision, covenant, or agreement on the part of the
         Seller to be performed or observed under this Agreement;

                                    (iii) the Reorganization Transactions; or

                                    (iv) the Excluded Subsidiaries or any assets
         or obligations of such entities.

                            (b) Notwithstanding the Closing or the delivery of
         the Subject Membership Interest and the Golden Unit and regardless of
         any investigation at any time made by or on behalf of the Seller or of
         any knowledge or information that the Seller may have, the Buyer hereby
         indemnifies and agrees to defend, save and hold the Seller and their
         officers, directors, employees, agents and affiliates (collectively,
         the "Seller Indemnified Parties") harmless for any Loss suffered by any
         such Seller Indemnified Party at any time or from time to time arising
         out of, relating to or resulting from any of the following:

                                    (i) any breach or inaccuracy in any
         representation by the Buyer or the breach of any warranty by the Buyer
         contained in this Agreement or any certificates or other documents
         delivered pursuant to this Agreement on Closing; or

                                    (ii) any failure by the Buyer to perform or
         observe any term, provision, covenant, or agreement on the part of the
         Buyer to be performed or observed under this Agreement.

                            (c) The foregoing indemnification obligations shall
         be subject to the following limitations:

                                    (i) the Seller's aggregate liability under
         Section 8.2(a)(i), and 8.2(a)(iii) and the Buyer's aggregate liability
         under Section 8.2(b)(i) shall not, in either case, exceed 30% of the
         Purchase Price (the "Cap"); provided, however, that the Cap shall not
         be applicable to breaches by Seller under Section 2.2 and 2.9;

                                    (ii) no indemnification for any Losses
         asserted against the Buyer or the Seller, as the case may be, under
         Section 8.2(a)(i) or Section 8.2(b)(i) shall be required unless and
         until the cumulative aggregate amount of such Losses exceeds $8,000,000
         (the "Threshold"), at which point the Seller or the Buyer, as the case
         may be, shall be obligated to indemnify the Indemnified Party (as
         hereinafter defined) only as to the amount of such Losses in excess of
         $1,000,000 (the "Deductible"), subject to the limitation in Section
         8.2(c)(i); provided, however, that the Threshold and the Deductible
         shall not be applicable to breaches under Sections 2.2, and 2.9;

                                    (iii) the amount of any Losses suffered by

                                       35
<PAGE>

         a Seller Indemnified Party or a Buyer Indemnified Party, as the case
         may be, shall be reduced by any third-party insurance which such party
         actually receives in respect of or as a result of such Losses. If any
         Losses for which indemnification was provided hereunder is subsequently
         reduced by any third-party insurance or other indemnification benefit
         or recovery actually received by the party for which indemnification
         was provided, the amount of the reduction shall be remitted to the
         Indemnifying Party (as hereinafter defined);

                                    (iv) no claim may be asserted nor may any
         action be commenced (A) against the Seller for breach or inaccuracy of
         any representation or breach of a warranty, unless written notice of
         such claim or action is received by the Seller describing in reasonable
         detail the facts and circumstances with respect to the subject matter
         of such claim or action on or prior to the date on which the
         representation or warranty on which such claim or action is based
         ceases to survive as set forth in Section 8.1 (it being agreed and
         understood that if a claim for a breach of a representation or warranty
         is timely made, the representation or warranty shall survive until the
         date on which such claim is finally liquidated or otherwise resolved),
         or (B) against the Buyer for breach or inaccuracy of any representation
         or breach of a warranty, unless written notice of such claim or action
         is received by the Buyer describing in reasonable detail the facts and
         circumstances with respect to the subject matter of such claim or
         action on or prior to the date on which the representation or warranty
         on which such claim or action is based ceases to survive as set forth
         in Section 8.1 (it being agreed and understood that if a claim for a
         breach of a representation or warranty is timely made, the
         representation or warranty shall survive until the date on which such
         claim is finally liquidated or otherwise resolved); and

                                    (v) an Indemnified Party shall not be
         entitled under this Agreement to multiple recovery for the same Losses.

                            (d) Notwithstanding anything in this Agreement to
         the contrary (including, without limitation, the provisions of Section
         8.2(c)(i) and (ii)), Seller hereby indemnifies and agrees to defend,
         save and hold the Buyer harmless from all Losses suffered by the Buyer
         resulting from any judgment or order by a Governmental Authority to
         return or reassign the Subject Membership Interest or the Golden Unit
         or the underlying assets of the Company and its Subsidiaries to the
         Seller or any affiliate of the Seller.

                  Section 8.3 Procedures. Any Indemnified Party shall notify the
Indemnifying Party (with reasonable specificity) promptly after it becomes aware
of facts supporting a claim or action for indemnification under this Article
VIII, and shall provide to the Indemnifying Party as soon as practicable
thereafter all information and documentation in its possession reasonably
necessary to support and verify any Losses associated with such claim or action.
Subject to Section 8.2(v), the failure to so notify the

                                       36
<PAGE>

Indemnifying Party shall not relieve the Indemnifying Party of any liability
that it may have to any Indemnified Party, except to the extent that the
Indemnifying Party demonstrates that it has been materially prejudiced by the
Indemnified Party's failure to give such notice, in which case the Indemnifying
Party shall be relieved from its obligations hereunder to the extent and only to
the extent of such material prejudice. The Indemnifying Party shall defend,
contest or otherwise protect the Indemnified Party against any such claim or
action by counsel of the Indemnifying Party's choice at its sole cost and
expense; provided, however, that the Indemnifying Party shall not make any
settlement or compromise without the prior written consent of the Indemnified
Party (which consent shall not be unreasonably withheld or delayed) unless the
sole relief provided is monetary damages that are paid in full by the
Indemnifying Party. The Indemnified Party shall have the right, but not the
obligation, to participate at its own expense in the defense thereof by counsel
of the Indemnified Party's choice and shall in any event use its reasonable best
efforts to cooperate with and assist the Indemnifying Party. If the Indemnifying
Party fails timely to defend, contest or otherwise protect against such suit,
action, investigation, claim or proceeding, the Indemnified Party shall have the
right to do so, including, without limitation, the right to make any compromise
or settlement thereof, and the Indemnified Party shall be entitled to recover
the entire cost thereof from the Indemnifying Party, including, without
limitation, reasonable attorneys' fees, disbursements and amounts paid as the
result of such suit, action, investigation, claim or proceeding.

                  Section 8.4 Remedy. Absent fraud, and except for seeking
equitable relief, from and after the Closing the sole remedy of a party in
connection with (i) a breach or inaccuracy of the representations, or breach of
warranties, in this Agreement or any certificates or other documents delivered
pursuant to this Agreement on Closing, or (ii) any failure by a party to perform
or observe any term, provision, covenant, or agreement on the part of such party
to be performed or observed under this Agreement, shall, in each case, be as set
forth in this Article VIII.

                                   ARTICLE IX

                            MISCELLANEOUS PROVISIONS

                  Section 9.1 Publicity. On or prior to the Closing Date,
neither party shall, nor shall it permit its affiliates to, issue or cause the
publication of any press release or other announcement with respect to this
Agreement or the transactions contemplated hereby without the consent of the
other party hereto. Notwithstanding the foregoing, in the event any such press
release or announcement is required by law or stock exchange rule to be made by
the party proposing to issue the same, such party shall use its reasonable best
efforts to consult in good faith with the other party prior to the issuance of
any such press release or announcement.

                  Section 9.2 Successors and Assigns; No Third-Party
Beneficiaries. This Agreement shall inure to the benefit of, and be binding
upon, the parties hereto and their respective successors and assigns; provided,
however, that neither party shall assign or delegate any of the obligations
created under this Agreement without the prior written

                                       37
<PAGE>

consent of the other party. Except as contemplated by Article VIII, nothing in
this Agreement shall confer upon any person or entity not a party to this
Agreement, or the legal representatives of such person or entity, any rights or
remedies of any nature or kind whatsoever under or by reason of this Agreement.

                  Section 9.3 Investment Bankers, Financial Advisors, Brokers
and Finders.

                            (a) The Seller shall indemnify and agree to defend
         and hold the Buyer Indemnified Parties harmless against and in respect
         of all claims, losses, liabilities and expenses which may be asserted
         against any Buyer Indemnified Parties by any broker or other person who
         claims to be entitled to an investment banker's, financial advisor's,
         broker's, finder's or similar fee or commission in respect of the
         execution of this Agreement or the consummation of the transactions
         contemplated hereby, by reason of his acting at the request of the
         Seller, the Company or any of their Affiliates.

                            (b) The Buyer shall indemnify and agree to save and
         hold the Seller Indemnified Parties harmless against and in respect of
         all claims, losses, liabilities, fees, costs and expenses which may be
         asserted against them by any broker or other person who claims to be
         entitled to an investment banker's, financial advisor's, broker's,
         finder's or similar fee or commission in respect of the execution of
         this Agreement or the consummation of the transactions contemplated
         hereby, by reason of his acting at the request of the Buyer or any of
         its affiliates (other than the Company or any Subsidiary of the
         Company).

                  Section 9.4 Fees and Expenses. Except as otherwise expressly
provided in this Agreement, all legal, accounting and other fees, costs and
expenses of a party hereto incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party incurring such fees,
costs or expenses; provided, however, that the Seller shall be solely
responsible for all legal, accounting and other fees, costs and expenses
incurred by the Seller and the Company and the Subsidiaries of the Company.

                  Section 9.5 Notices. All notices and other communications
given or made pursuant hereto shall be in writing and shall be deemed to have
been duly given or made if delivered personally or sent by overnight courier or
sent by facsimile (with evidence of confirmation of receipt) to the parties at
the following addresses:

                           (a) If to the Buyer, to:

                                       38
<PAGE>

                         Enterprise Products Operating L.P.
                         c/o Enterprise Products GP, LLC
                         2727 N. Loop West, Suite 700
                         Houston, Texas 77008
                         Facsimile: (713) 880-6960
                         Attention: President

                  with a copy to:

                         Enterprise Products GP, LLC
                         2727 N. Loop West, Suite 700
                         Houston, Texas 77008
                         Facsimile: (713) 880-6960
                         Attention: Chief Legal Officer

                         (b) If to the Seller, to:

                         The Williams Companies, Inc.,
                         Williams Natural Gas Liquids, Inc.
                         One Williams Center
                         Tulsa, Oklahoma 74172
                         Facsimile: (918) 573-5942
                         Attention: William von Glahn, Esq.

                         Skadden, Arps, Slate, Meagher & Flom LLP
                         Four Times Square
                         New York, NY 10036
                         Facsimile: (212) 735-2000
                         Attention: Nancy A. Lieberman, Esq.

or to such other persons or at such other addresses as shall be furnished by
either party by like notice to the other, and such notice or communication shall
be deemed to have been given or made as of the date so delivered or mailed. No
change in any of such addresses shall be effective insofar as notices under this
Section 9.5 are concerned unless such changed address is located in the United
States of America and notice of such change shall have been given to such other
party hereto as provided in this Section 9.5.

                  Section 9.6 Entire Agreement. This Agreement, together with
the Disclosure Schedules and the exhibits hereto, represent the entire agreement
and understanding of the parties in connection with the purchase and sale of the
Subject Membership Interest and the Golden Unit and no representations or
warranties have been made in connection with this Agreement other than those
expressly set forth herein or in the Disclosure Schedules, exhibits,
certificates and other documents delivered in accordance herewith. This
Agreement supersedes all prior negotiations, discussions, correspondence,
communications, understandings and agreements between the parties

                                       39
<PAGE>

relating to the subject matter of this Agreement and all prior drafts of this
Agreement, all of which are merged into this Agreement. No prior drafts of this
Agreement and no words or phrases from any such prior drafts shall be admissible
into evidence in any action or suit involving this Agreement.

                  Section 9.7 Waivers and Amendments. The Seller, as a group, or
the Buyer, may by written notice to the other:

                            (a) extend the time for the performance of any of
         the obligations or other actions of the other;

                            (b) waive any inaccuracies in the representations or
         warranties of the other contained in this Agreement or in any document
         delivered pursuant to this Agreement by the other party;

                            (c) waive compliance with any of the covenants of
         the other contained in this Agreement;

                            (d) waive performance of any of the obligations of
         the other created under this Agreement; or

                            (e) waive fulfillment of any of the conditions to
         its own obligations under this Agreement or in any documents delivered
         pursuant to this Agreement by the other party. The waiver by any party
         hereto of a breach of any provision of this Agreement shall not operate
         or be construed as a waiver of any subsequent breach, whether or not
         similar, unless such waiver specifically states that it is to be
         construed as a continuing waiver. This Agreement may be amended,
         modified or supplemented only by a written instrument executed by the
         parties hereto.

                  Section 9.8 Severability. This Agreement shall be deemed
severable, and the invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of this Agreement or of
any other term or provision hereof. Furthermore, in lieu of any such invalid or
unenforceable term or provision, the parties hereto intend that there shall be
added as a part of this Agreement a provision as similar in terms to such
invalid or unenforceable provision as may be possible and be valid and
enforceable.

                  Section 9.9 Titles and Headings. The Article and Section
headings and any table of contents contained in this Agreement are solely for
convenience of reference and shall not affect the meaning or interpretation of
this Agreement or of any term or provision hereof.

                  Section 9.10 Signatures and Counterparts. Facsimile
transmission of any signed original document and/or retransmission of any signed
facsimile transmission shall be the same as delivery of an original. At the
request of the Buyer or the Seller, the parties will confirm facsimile
transmission by signing a duplicate original document. This Agreement may be
executed in two or more counterparts, each of which shall be deemed

                                       40
<PAGE>

an original and all of which together shall be considered one and the same
agreement.

                  Section 9.11 Enforcement of the Agreement. The parties hereto
agree that irreparable damage would occur if any of the provisions of this
Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that the parties shall be entitled
to an injunction or injunctions to prevent breaches of this Agreement and to
enforce specifically the terms and provisions hereto, this being in addition to
any other remedy to which they are entitled at law or in equity. In no event
shall any party hereto be entitled to any punitive, incidental, indirect,
special or consequential damages resulting from or arising out of this Agreement
or the transactions contemplated hereby.

                  Section 9.12 Governing Law. This Agreement shall be governed
by and construed in accordance with the internal and substantive laws of
Delaware and without regard to any conflicts of laws concepts which would apply
the substantive law of some other jurisdiction.

                  Section 9.13 Certain Definitions. For purposes of this
Agreement, the term:

                            (a) "affiliate" of a person means a person that
         directly or indirectly, through one or more intermediaries, controls,
         is controlled by, or is under common control with, the first mentioned
         person: the Company and its Subsidiaries shall be deemed to be
         affiliates (i) of the Seller prior to the Closing and (ii) of the Buyer
         from and after the Closing.

                            (b) "Assets" means all of the assets (including Real
         Property, and tangible and intangible assets) used or necessary for the
         conduct of the Company's and its Subsidiaries' businesses as they are
         presently conducted and as conducted immediately prior to the
         Contributions, excluding (i) the assets of the Excluded Subsidiaries
         and (ii) the Omnibus Excluded Assets.

                            (c) "Material Adverse Effect" means a material
         adverse effect on the assets, properties, business, operations, net
         income or financial condition of the Company and its Subsidiaries taken
         as a whole, it being understood that none of the following shall be
         deemed to constitute a Material Adverse Effect: (i) any effect
         resulting from entering into this Agreement or the announcement of the
         transactions contemplated by this Agreement; and (ii) any effect
         resulting from changes in the United States or global economy as a
         whole, except for such effects which disproportionately impact the
         Company and its Subsidiaries.

                            (d) "Omnibus Excluded Assets" means (i) the
         Intellectual Property which is being addressed through the IT Migration
         Plan and Transition Services Agreement, (ii) any assets that are
         designated under this Agreement or the Transition Services Agreement as
         excluded assets or shared assets to be retained by Seller or its
         affiliates, and (iii) assets that are used

                                       41
<PAGE>

         primarily in the conduct of the business and operation of the business
         of the Seller or any of its affiliates (other than Company or its
         Subsidiaries) immediately following the Closing.

                            (e) "person" means an individual, corporation,
         association, trust, limited liability company, limited partnership,
         limited liability partnership, partnership, incorporated organization,
         other entity or group (as defined in Section 13(d)(3) of the Securities
         Exchange Act of 1934).

                            (f) "Pipeline Systems" means the natural gas liquids
         and other pipelines, lateral lines, pumps, pump stations and other
         related machinery and equipment that are located on or under the Real
         Property and that are used or necessary for the conduct of the
         Company's and its Subsidiaries' businesses as they are presently
         conducted and as conducted immediately prior to the Contributions.

                            (g) "Seminole Purchase Agreement" means that certain
         Purchase Agreement between Oaktree and E-Cypress, LLC of even date
         herewith.

                  Section 9.14 Reserved.

                                       42
<PAGE>

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

                                    E-BIRCHTREE, LLC

                                             By:   /s/ Alan S. Armstrong
                                                  Name:   Alan Armstrong
                                                  Title:    Vice President

                                    ENTERPRISE PRODUCTS OPERATING L.P

                                             By:   /s/ Michael Creel
                                                 Name:  Michael Creel
                                                 Title: Executive VP and CFO

                                       43
<PAGE>

                                 SCHEDULE 1.4(b)

                              MAPCO NOTE AGREEMENTS

1.       Mid-America Pipeline Company Note Agreement with The Prudential
         Insurance Company of America dated as of April 30, 1992 for $15,000,000
         of 8.51% Series A Senior Notes due April 30, 2007.

2.       Mid-America Pipeline Company Note Agreement with The Prudential
         Insurance Company of America dated as of May 20, 1992 for $35,500,000
         of 8.95% Senior Notes due April 30, 2012.

3.       Mid-America Pipeline Company Note Agreement with The Prudential
         Insurance Company of America dated as of July 13, 1992 for $15,000,000
         of 8.20% Senior Notes due July 1, 2012.

4.       Mid-America Pipeline Company Note Agreement with The Prudential
         Insurance Company of America dated as of July 20, 1992 for $14,500,000
         of 8.59% Senior Notes due July 1, 2017.

5.       Mid-America Pipeline Company Note Agreement with The Prudential
         Insurance Company of America dated as of November 20, 1992 for
         $15,000,000 of 8.70% Senior Notes due November 20, 2022.

<PAGE>

                                 SCHEDULE 2.8(b)
                     CERTAIN CHANGES AND CONDUCT OF BUSINESS

1.       made any material change in the conduct of its businesses or
         operations;

2.       made any change in its Organizational Documents or issued any
         additional equity securities or granted any option, warrant or right to
         acquire any equity securities or issue any security convertible into or
         exchangeable for its equity securities or altered any term of any of
         its outstanding securities or made any change in its outstanding equity
         securities or other ownership interests or in its capitalization,
         whether by reason of a reclassification, recapitalization, stock split
         or combination, exchange or readjustment of shares, stock dividend or
         otherwise;

3.       other than in the ordinary course of business, (A) incurred, assumed or
         guaranteed any indebtedness for borrowed money, issue any notes, bonds,
         debentures or other corporate securities or granted any option, warrant
         or right to purchase any thereof or (B) issued any securities
         convertible or exchangeable for debt securities of the Company or any
         Subsidiary;

4.       made any sale, assignment, transfer, abandonment or other conveyance of
         any of its assets or any part thereof except for dispositions of
         inventory or of worn-out or obsolete equipment for fair or reasonable
         value in the ordinary course of business consistent with past
         practices;

5.       subjected any of its assets, or any part thereof, to any Encumbrance
         other than a Permitted Encumbrance, or permitted the imposition of any
         Encumbrance other than a Permitted Encumbrance;

6.       redeemed, retired, purchased or otherwise acquired, directly or
         indirectly, any of its equity interests or declared, set aside or paid
         any dividends or other distribution in respect of such equity
         interests;

7.       acquired any assets or properties other than in the ordinary course of
         business consistent with past practices;

8.       entered into any new or materially amend any existing employee benefit
         plan, program or arrangement or any employment, severance or consulting
         agreement, grant any general increase in the compensation of officers
         or employees (including any such increase pursuant to any bonus,
         pension, profit-sharing or other plan or commitment) or granted any
         increase in the compensation payable or to become payable to any
         employee, except in accordance with pre-existing contractual
         provisions;

9.       made or committed to make any capital expenditure or to invest,
         advance, loan, pledge or donate any monies to any clients or other
         persons or to make any

<PAGE>

         similar commitments with respect to outstanding bids or proposals,
         except as disclosed on Schedule 4.1;

10.      paid, except in the ordinary course of business consistent with past
         practices, loaned or advanced any amount to, or sold, transferred or
         leased any properties or assets to, or entered into any agreement or
         arrangement with, any of its affiliates;

11.      intentionally took any other action that would cause any of the
         representations and warranties made herein not to remain true and
         correct in all material respects;

12.      made any loan, advance or capital contribution to or investment in any
         person;

13.      other than routine compliance filings, made any filings or submit any
         documents or information to FERC without prior consultation with the
         Buyer;

14.      entered into any material settlement of any pending or threatened
         litigation;

15.      consented to the entry of any decree or order by a governmental body or
         pay any fine or penalty that would have a Material Adverse Effect;

16.      other than in connection with the Reorganization Transactions, merged
         into or with or consolidated with any other corporation or acquired all
         or substantially all of the business or assets of any corporation,
         person or entity;

17.      entered into any agreement or amendment, modification, or termination
         of any contract, lease, or license to which the Company or any
         Subsidiary is a party, or by which it or any of its assets or
         properties are bound, except those agreements, amendments,
         modifications or terminations effected in the ordinary course of
         business consistent with past practices; or

18.      committed itself to do any of the foregoing.

                                       2
<PAGE>

                                  SCHEDULE 2.28

The following contracts:

1.       Aux Sable ethane purchase.

2.       Aux Sable propane purchase.

3.       Aux Sable propane exchange.

4.       Equistar exchange (associated with Aux Sable).

5.       Ethane incentive tariff and earned storage rights (Conway to MTBV).

6.       Pioneer-Fain plant NGL production purchase.

7.       Pioneer-Satanta plant NGL production purchase.

<PAGE>

                                  SCHEDULE 4.12

a.       Customer Information Solution (CIS) - to be owned by MAPL with a
         nonexclusive, royalty free, transferable license to WNGL

         (i)      Third party interactive components

                  (A)      Client App - PowerBuilder 6.5, Sybase/PowerSoft

                  (B)      WEB App - Visual Studio 6.0 (ASP, COM), Microsoft
                           Corporation

                  (C)      WEB Encryption - Security Socket Certificate,
                           VeriSign, Inc.

                  (D)      Engines - PL/SQL, Oracle Corporation

                  (E)      Measurement Calculation Program - C/C++, IBM

                  (F)      Measurement Calculation Program (stand-alone) -
                           Visual Basic, Microsoft Corporation

                  (G)      Predictive Models - NuralWare

                  (H)      Web & Report Servers - NT 4.0, Microsoft Corporation

                  (I)      Unix Servers - AIX 4.3.3, IBM

                  (J)      Database - Oracle 8.0.6, Oracle Corporation

                  (K)      Batch Scheduler - Autosys

                  (L)      App Security - Applock

                  (M)      App Distribution - InstallShield Prof, Install Shield
                           Software Corp.

                  (N)      Backup & Recovery - TSM Backup Systems

                  (O)      Code Management - Visual SourceSafe 6.0, Microsoft
                           Corporation

b. Terminal Automation System (truck terminals) - nonexclusive, royalty free,
transferable license to MAPL

c. Geographic Information System (GIS) - nonexclusive, royalty free,
transferable license to MAPL

         (i)      third party interactive components

                  (A)      ArcView, ESRI Corporation

<PAGE>

d. Maintenance Management System - nonexclusive, royalty free, transferable
license to MAPL

e. Natural Gas Liquids SCADA System - hardware to be owned by MAPL; nonexclusive
royalty free license of software to MAPL

         (i) Metso (Val Met) Oasys 5.2 - licensed to MAPCO Natural Gas Liquids
Inc.

         (ii) Soaris Unix 2.6

         (iii) Sybase 10.9.x

         (iv) Metso Operator @ Web

         (v) Honeywell Uniformance - Process Historian

         (vi) Acrom - licensed to Williams Energy Services

         (vii) C2 Technologies Broker Software - Licensed to Mid America
Pipeline Co.

         (viii) Siemens/TI - Soft Shop

         (ix) National Instruments - Lookout

         (x) Acrom Control Systems - CIS software

         (xi) GE - Versepro

         (xii) Allen-Bradley - RS Logix

         (xiii) PC Anywhere

                                       2

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