Document:

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                                                                     EXHIBIT 4.1

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                         NORTHWEST PIPELINE CORPORATION
                                   as Company

                                       and

                               JPMORGAN CHASE BANK
                                   as Trustee

                                    INDENTURE

                            Dated as of March 4, 2003

                              Series A and Exchange

                          8 1/8% Senior Notes due 2010

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                             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
       (c)...................................................................          N.A.
311    (a)...................................................................          6.11
       (b)...................................................................          6.11
       (c)...................................................................          N.A.
312    (a)...................................................................          2.05
       (b)...................................................................         11.03
       (c)...................................................................         11.03
313    (a)...................................................................          6.06
       (b)...................................................................          6.06
       (c)...................................................................          6.06
       (d)...................................................................          6.06
314    (a)(4)................................................................          3.04
       (b)...................................................................          N.A.
       (c)(1)................................................................          N.A.
       (c)(2)................................................................          N.A.
       (c)(3)................................................................          N.A.
       (d)...................................................................          N.A.
       (e)...................................................................         10.05
       (f)...................................................................          N.A.
315    (a)...................................................................          N.A.
       (b)...................................................................          N.A.
       (c)...................................................................          N.A.
       (d)...................................................................          N.A.
       (e)...................................................................          N.A.
316    (a)(last sentence)....................................................          N.A.
       (a)(1)(A).............................................................          N.A.
       (a)(1)(B).............................................................          N.A.
       (a)(2)................................................................          N.A.
       (b)...................................................................          N.A.
       (c)...................................................................          N.A.
317    (a)(1)................................................................          N.A.
       (a)(2)................................................................          N.A.
       (b)...................................................................          N.A.
318    (a)...................................................................          N.A.
318    (c)...................................................................          N.A.
</TABLE>

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

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                  PAGE
                                                                                                  ----
                    ARTICLE 1DEFINITIONS AND INCORPORATION BY
                                    REFERENCE
<S>                                                                                               <C>
SECTION 1.01.  Definitions.....................................................................    1
SECTION 1.02.  Other Definitions...............................................................    26
SECTION 1.03.  Incorporation by Reference of Trust Indenture Act...............................    27
SECTION 1.04.  Rules of Construction...........................................................    27

                               ARTICLE 2THE NOTES

SECTION 2.01.  Form and Dating.................................................................    28
SECTION 2.02.  Execution and Authentication....................................................    29
SECTION 2.03.  Registrar and Paying Agent......................................................    30
SECTION 2.04.  Paying Agent to Hold Money in Trust.............................................    31
SECTION 2.05.  Holder Lists....................................................................    31
SECTION 2.06.  Transfer and Exchange...........................................................    31
SECTION 2.07.  Certificated Notes..............................................................    37
SECTION 2.08.  Replacement Notes...............................................................    38
SECTION 2.09.  Outstanding Notes...............................................................    39
SECTION 2.10.  Treasury Notes..................................................................    40
SECTION 2.11.  Temporary Notes.................................................................    40
SECTION 2.12.  Cancellation....................................................................    40
SECTION 2.13.  Defaulted Interest..............................................................    40
SECTION 2.14.  Persons Deemed Owners...........................................................    40
SECTION 2.15.  CUSIP Numbers...................................................................    41

                               ARTICLE 3COVENANTS

SECTION 3.01.  Payment of Notes................................................................    41
SECTION 3.02.  Maintenance of Office or Agency.................................................    41
SECTION 3.03.  Commission Reports; Financial Statements........................................    42
SECTION 3.04.  Compliance Certificate..........................................................    43
SECTION 3.05.  Limitation on Restricted Payments...............................................    43
SECTION 3.06.  Limitation on Incurrence of Indebtedness and Issuance of Preferred Stock........    47
SECTION 3.07.  Limitation on Liens.............................................................    50
</TABLE>

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<TABLE>
<S>                                                                                                <C>
SECTION 3.08.  Limitation on Dividend and Other Payment Restrictions
                  Affecting Restricted Subsidiaries............................................    50
SECTION 3.09.  Additional Interest.............................................................    52
SECTION 3.10.  Guaranties by Restricted Subsidiaries...........................................    52
SECTION 3.11.  Repurchase of Notes upon a Change of Control....................................    53
SECTION 3.12.  Limitation on Asset Sales.......................................................    53
SECTION 3.13.  Limitation on Transactions with Affiliates......................................    56
SECTION 3.14.  Designation of Restricted and Unrestricted Subsidiaries.........................    57
SECTION 3.15.  Limitation on Sale and Leaseback Transactions...................................    58
SECTION 3.16.  Business Activities.............................................................    58
SECTION 3.17.  Payments for Consent............................................................    58

                     ARTICLE 4CONSOLIDATION, MERGER AND SALE

SECTION 4.01.  Limitation on Mergers and Consolidations........................................    59
SECTION 4.02.  Successors Substituted..........................................................    60
SECTION 4.03.  Consolidation, Merger or Sale of Assets by a Guarantor..........................    61

                         ARTICLE 5DEFAULTS AND REMEDIES

SECTION 5.01.  Events of Default...............................................................    61
SECTION 5.02.  Acceleration....................................................................    64
SECTION 5.03.  Other Remedies..................................................................    65
SECTION 5.04.  Waiver of Existing Defaults.....................................................    65
SECTION 5.05.  Control by Majority.............................................................    66
SECTION 5.06.  Limitations on Suits............................................................    66
SECTION 5.07.  Rights of Holders to Receive Payment............................................    66
SECTION 5.08.  Collection Suit by Trustee......................................................    67
SECTION 5.09.  Trustee May File Proofs of Claim................................................    67
SECTION 5.10.  Priorities......................................................................    67
SECTION 5.11.  Undertaking for Costs...........................................................    68

                                ARTICLE 6TRUSTEE

SECTION 6.01.  Duties of Trustee...............................................................    68
SECTION 6.02.  Rights of Trustee...............................................................    69
SECTION 6.03.  Individual Rights of Trustee....................................................    71
SECTION 6.04.  Trustee's Disclaimer............................................................    71
SECTION 6.05.  Notice of Defaults..............................................................    71
SECTION 6.06.  Reports by Trustee to Holders...................................................    71
SECTION 6.07.  Compensation and Indemnity......................................................    72
SECTION 6.08.  Replacement of Trustee..........................................................    72
</TABLE>

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<TABLE>
<S>                                                                                                <C>
SECTION 6.09.  Successor Trustee by Merger, Etc................................................    73
SECTION 6.10.  Eligibility; Disqualification...................................................    74
SECTION 6.11.  Preferential Collection of Claims Against Company...............................    74

                        ARTICLE 7DEFEASANCE AND DISCHARGE

SECTION 7.01.  Discharge of Company's Obligations..............................................    75
SECTION 7.02.  Legal Defeasance................................................................    76
SECTION 7.03.  Covenant Defeasance.............................................................    77
SECTION 7.04.  Covenant Termination............................................................    78
SECTION 7.05.  Application of Trust Money......................................................    78
SECTION 7.06.  Repayment to Company............................................................    78
SECTION 7.07.  Reinstatement...................................................................    79

                               ARTICLE 8AMENDMENTS

SECTION 8.01.  Without Consent of Holders......................................................    79
SECTION 8.02.  With Consent of Holders.........................................................    80
SECTION 8.03.  Compliance with Trust Indenture Act.............................................    82
SECTION 8.04.  Revocation and Effect of Consents...............................................    82
SECTION 8.05.  Notation on or Exchange of Notes................................................    83
SECTION 8.06.  Trustee to Sign Amendments, Etc.................................................    83

                               ARTICLE 9REDEMPTION

SECTION 9.01.  Notices to Trustee..............................................................    83
SECTION 9.02.  Selection of Notes to Be Redeemed...............................................    83
SECTION 9.03.  Notices to Holders..............................................................    84
SECTION 9.04.  Effect of Notices of Redemption.................................................    85
SECTION 9.05.  Deposit of Redemption Price.....................................................    85
SECTION 9.06.  Notes Redeemed in Part..........................................................    86
SECTION 9.07.  Optional Redemption.............................................................    86
SECTION 9.08.  Redemption with Proceeds of Public Equity Offering..............................    86
SECTION 9.09.  Change of Control Offer.........................................................    87

                              ARTICLE 10GUARANTIES

SECTION 10.01.  The Guaranties.................................................................    89
SECTION 10.02.  Guarantee Unconditional........................................................    89
SECTION 10.03.  Discharge; Reinstatement.......................................................    90
SECTION 10.04.  Waiver by the Guarantors.......................................................    90
</TABLE>

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<TABLE>
<S>                                                                                                <C>
SECTION 10.05.  Subrogation and Contribution...................................................    90
SECTION 10.06.  Stay of Acceleration...........................................................    91
SECTION 10.07.  Limitation on Amount of Guarantee..............................................    91
SECTION 10.08.  Execution and Delivery of Guarantee............................................    91
SECTION 10.09.  Release of Guarantee...........................................................    91

                             ARTICLE 11MISCELLANEOUS

SECTION 11.01.  Trust Indenture Act Controls...................................................    92
SECTION 11.02.  Notices........................................................................    92
SECTION 11.03.  Communication by Holders with Other Holders....................................    93
SECTION 11.04.  Certificate and Opinion as to Conditions Precedent.............................    94
SECTION 11.05.  Statements Required in Certificate or Opinion..................................    94
SECTION 11.06.  Rules by Trustee and Agents....................................................    94
SECTION 11.07.  Legal Holidays.................................................................    94
SECTION 11.08.  No Recourse Against Others.....................................................    95
SECTION 11.09.  Governing Law..................................................................    95
SECTION 11.10.  No Adverse Interpretation of Other Agreements..................................    95
SECTION 11.11.  Successors.....................................................................    95
SECTION 11.12.  Severability...................................................................    95
SECTION 11.13.  Counterpart Originals..........................................................    95
SECTION 11.14.  Table of Contents, Headings, Etc...............................................    95
</TABLE>

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                                       vi

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                                    EXHIBITS

<TABLE>
<S>                                                                                       <C>
EXHIBIT A   Form of Note................................................................  A-1
EXHIBIT B   Form of Supplemental Indenture..............................................  B-1
</TABLE>

<PAGE>

         INDENTURE dated as of March 4, 2003 between Northwest Pipeline
Corporation, a Delaware corporation (the "COMPANY") and JPMorgan Chase Bank, a
New York banking corporation, 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% Series A
Senior Notes due 2010 (the "SERIES A NOTES") and 8% Exchange Senior Notes due
2010 (the "EXCHANGE NOTES" and together with the Series A Notes, the "NOTES").

                                    ARTICLE 1

                   DEFINITIONS AND INCORPORATION BY REFERENCE

         SECTION 1.1.  Definitions.

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

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

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

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

         "AGENT" means any Registrar or Paying Agent.

         "ASSET SALE" means:

         (1) the sale, lease, conveyance or other disposition of any assets or
rights; provided that the sale, conveyance or other disposition of all or
substantially

<PAGE>

all of the assets of the Company and its Restricted Subsidiaries taken as a
whole will be governed by the provisions of the Indenture described in Section
3.11 and/or the provisions described in Article IV and not by the provisions of
Section 3.12; and

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

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

         (1) any single transaction or series of related transactions that
involves assets having a fair market value of less than $2.0 million;

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

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

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

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

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

         (7) Sale and Leaseback Transactions; and

         (8) a Restricted Payment or Permitted Investment that is permitted by
Section 3.05.

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

         "AVAILABLE CASH FLOW FROM OPERATIONS" means for any period of the
Company, Consolidated Cash Flow of the Company for such period, minus the sum of
the following, each determined for such period on a consolidated basis:

                                       2

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         (1) cash taxes for the Company and its Restricted Subsidiaries,
including payments to the Company's Williams Group Affiliates in respect of
taxes pursuant to tax sharing arrangements; plus

         (2) cash interest expense paid by the Company and its Restricted
Subsidiaries whether or not capitalized (including, without limitation, the
interest component of all payments associated with Capital Lease Obligations,
imputed interest with respect to Attributable Debt, commissions, discounts and
other fees and charges incurred in respect of letter of credit or bankers'
acceptance financings, and net of the effect of all payments made or received
pursuant to Hedging Obligations); plus

         (3) additions to property, plant and equipment and other capital
expenditures of the Company and its Restricted Subsidiaries that are (or would
be) set forth in a consolidated statement of cash flows of the Company and its
Restricted Subsidiaries for such period prepared in accordance with generally
accepted accounting principles (except to the extent financed by the incurrence
of Indebtedness); plus

         (4) the aggregate principal amount of long-term Indebtedness repaid by
the Company and its Restricted Subsidiaries and any short-term Indebtedness that
financed capital expenditures referred to in clause (3) above, excluding any
such repayments (i) under working capital facilities (except to the extent that
such Indebtedness so repaid was incurred to finance capital expenditures as
described in clause (3) above), (ii) out of Net Cash Proceeds of Asset Sales as
provided in Section 3.12 and (iii) through a refinancing involving the
incurrence of new long-term Indebtedness.

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

         "BENEFICIAL OWNER" has the meaning assigned to such term in Rule 13d-3
and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial
ownership of any particular "person" (as that term is used in Section 13(d)(3)
of the Exchange Act), such "person" will be deemed to have beneficial ownership
of all securities that such "person" has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
exercisable only upon the occurrence of a subsequent condition. The terms
"BENEFICIALLY OWNS" and "BENEFICIALLY OWNED" have a corresponding meaning.

         "BOARD OF DIRECTORS" means:

         (1) with respect to a corporation, the board of directors of the
corporation;

                                       3

<PAGE>

         (2) with respect to a partnership, the board of directors of the
general partner of the partnership; and

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

         "BUSINESS DAY" means any day that is not a Legal Holiday.

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

         "CAPITAL STOCK" means:

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

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

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

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

         "CASH EQUIVALENTS" means:

         (1) United States dollars;

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

         (3) certificates of deposit and Eurodollar time deposits with
maturities of one year or less from the date of acquisition, bankers'
acceptances with maturities not exceeding 365 days and overnight bank deposits
and other similar types of investments routinely offered by commercial banks, in
each case, with any lender party to the Credit Agreement or with any domestic
commercial bank or trust

                                       4

<PAGE>

company having capital and surplus in excess of $500.0 million and a Thomson
Bank Watch Rating of "B" or better;

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

         (5) commercial paper having the highest rating obtainable from Moody's
Investors Service, Inc. or Standard & Poor's Rating Services and in each case
maturing within 270 days after the date of acquisition;

         (6) money market funds at least 95% of the assets of which constitute
Cash Equivalents of the kinds described in clauses (1) through (5) of this
definition; and

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

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

         (1) the direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the properties or assets
of the Company and its Restricted Subsidiaries taken as a whole to any "person"
(as that term is used in Section 13(d)(3) of the Exchange Act);

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

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

                                       5

<PAGE>

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

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

         "CHANGE OF CONTROL OFFER" has the meaning assigned to such term in
Section 9.09.

         "COMMISSION" means the U.S. Securities and Exchange Commission.

         "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 the Indenture, and thereafter
"Company" shall mean such successor Person.

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

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

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

         (3) consolidated interest expense of such Person and its Restricted
Subsidiaries for such period, whether paid or accrued and whether or not
capitalized (including, without limitation, amortization of debt issuance costs
and original issue discount, non-cash interest payments, the interest component
of any deferred payment obligations, the interest component of all payments
associated with Capital Lease Obligations, imputed interest with respect to
Attributable Debt,

                                       6

<PAGE>

commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers' acceptance financings, and net of the effect of all
payments made or received pursuant to Hedging Obligations), to the extent that
any such expense was deducted in computing such Consolidated Net Income; plus

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

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

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

         in each case, on a consolidated basis and determined in accordance with
GAAP.

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

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

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

                                       7

<PAGE>

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

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

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

         "CONSOLIDATED SUBSIDIARIES" means, with respect to any Person, all
other Persons the financial statements of which are consolidated with those of
such Person in accordance with generally accepted accounting principals.

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

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

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

         "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 11.02 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.

         "CREDIT AGREEMENT" means the First Amended and Restated Credit
Agreement dated as of October 31, 2002, by and among The Williams Companies,
Inc., the Company, Transcontinental Gas Pipe Line Corporation and Texas Gas
Transmission Corporation as Borrowers and the banks named therein as Banks,
JPMorgan Chase Bank and Commerzbank AG as Co-Syndication Agents, Credit Lyonnais
New York Branch as Documentation Agent and Citicorp USA, Inc. as Agent and
Salomon Smith Barney Inc. as Arranger, providing for up to $400

                                       8

<PAGE>

million of revolving credit borrowings to the Company, including any related
notes, guarantees, collateral documents, instruments and agreements executed in
connection therewith, and in each case as amended, modified, renewed, refunded,
replaced or refinanced from time to time.

         "CREDIT AGREEMENT REFINANCING DATE" means the first date after the date
of the Indenture on which the Company's ability to enter into or suffer to exist
restrictions on dividends and advances to its Williams Group Affiliates is no
longer restricted pursuant to a credit facility or debt instrument to which any
Williams Group Affiliates are parties from time to time, including without
limitation pursuant to Section 5.02(d) of the Credit Agreement as in effect on
the date of the Indenture.

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

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

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

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

         "DISQUALIFIED STOCK" means any Capital Stock that, by its terms (or by
the terms of any security into which it is convertible, or for which it is
exchangeable, in each case at the option of the holder of the Capital Stock), or
upon the happening of any event, matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the Capital Stock, in whole or in part, on or prior to the date that
is 91 days after the date on which the Notes mature. Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock
solely because the holders of the Capital Stock have the right to require the
Company to repurchase such Capital Stock upon the occurrence of a change of
control or an asset sale will not

                                       9

<PAGE>

constitute Disqualified Stock if the terms of such Capital Stock provide that
the Company may not repurchase or redeem any such Capital Stock pursuant to such
provisions unless such repurchase or redemption complies with Section 3.05.

         "DOMESTIC RESTRICTED SUBSIDIARY" means any Restricted Subsidiary of the
Company that was formed under the laws of the United States or any state of the
United States or the District of Columbia or that guarantees or otherwise
provides direct credit support for any Indebtedness of the Company.

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

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

         "EXCHANGE NOTES" means the Company's 8% Senior Notes due 2010 to be
issued pursuant to the Indenture in an Exchange Offer.

         "EXCHANGE OFFER" means the offer that may be made by the Company
pursuant to a Registration Rights Agreement to exchange Exchange Notes for
Series A Notes.

         "EXCHANGE OFFER REGISTRATION STATEMENT" means a registration statement
under the Securities Act relating to an Exchange Offer, including the related
prospectus.

         "EXISTING INDEBTEDNESS" means up to $367.9 million in aggregate
principal amount of Indebtedness of the Company and its Restricted Subsidiaries
(other than Indebtedness under the Credit Agreement) in existence on the date of
the Indenture, until such amounts are repaid.

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

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

                                       10

<PAGE>

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

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

         (4) the product of (a) all dividends, whether paid or accrued and
whether or not in cash, on any series of preferred stock of such Person or any
of its Restricted Subsidiaries, other than dividends on Equity Interests payable
solely in Equity Interests of the Company (other than Disqualified Stock) or to
the Company or a Restricted Subsidiary of the Company, times (b) a fraction, the
numerator of which is one and the denominator of which is one minus the then
current combined federal, state and local statutory tax rate of such Person,
expressed as a decimal, in each case, on a consolidated basis and in accordance
with GAAP.

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

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

         (1) acquisitions that have been made by the specified Person or any of
its Restricted Subsidiaries, including through mergers, consolidations or
otherwise (including acquisitions of assets used in a Permitted Business) and
Qualifying Expansion Projects that have been commenced by the specified Person
or any of its Restricted Subsidiaries, and including in each case any related
financing transactions (including repayment of Indebtedness) during the
four-quarter reference period or subsequent to such reference period and on or
prior to the Calculation Date will be given pro forma effect as if they had
occurred or (in the case of any Qualifying Expansion Projects) been completed
and in service on the

                                       11

<PAGE>

first day of the four-quarter reference period, including any Consolidated Cash
Flow (including interest income reasonably anticipated by such Person to be
received from Cash and Cash Equivalents held by such Person or any of its
Restricted Subsidiaries) and any pro forma expense and cost reductions that have
occurred or are reasonably expected to occur, in the reasonable judgment of the
chief financial officer or chief accounting officer of the Company (regardless
of whether those cost savings or operating improvements could then be reflected
in pro forma financial statements in accordance with Regulation S-X promulgated
under the Securities Act or any other regulation or policy of the Commission
related thereto), but in the case of Qualifying Expansion Projects, only to the
extent of Qualifying Expansion Project Amounts;

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

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

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

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

         "GUARANTOR" means any subsidiary of the Company that executes a
Subsidiary Guarantee in accordance with the provisions of the Indenture and its
successors and assigns.

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

                                       12

<PAGE>

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

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

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

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

         "HOLDER" means a Person in whose name a Note is registered.

         "INCREMENTAL FUNDS" has the meaning set forth in Section 3.05.

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

         (1) in respect of borrowed money;

         (2) evidenced by bonds, notes, debentures or similar instruments or
letters of credit (or reimbursement agreements in respect thereof);

         (3) in respect of banker's acceptances;

         (4) representing Capital Lease Obligations;

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

         (6) representing any Hedging Obligations, or

         (7) under Permitted Receivables Financings;

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

                                       13

<PAGE>

extent not otherwise included, the Guarantee by the specified Person of any
indebtedness of any other Person.

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

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

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

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

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

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

         "INDEPENDENT INVESTMENT BANKER" means Lehman Brothers Inc. or another
independent investment banking institution of national standing appointed by the
Company.

         "INITIAL ISSUE DATE" means the first date on which the Series A Notes
are issued under the Indenture.

         "INITIAL PURCHASERS" means any initial purchasers of Series A Notes
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 Notes.

         "INVESTMENT GRADE DATE" has the meaning set forth in Section 7.04.

         "INVESTMENT GRADE RATING" means a rating equal to or higher than Baa3
by Moody's and BBB- by S&P.

         "INVESTMENTS" means, with respect to any Person, all direct or indirect
investments by such Person in other Persons (including Affiliates) in the forms
of loans (including Guarantees (other than Guarantees of Indebtedness of the
Company or any of its Guarantors to the extent permitted in Section 3.06),
advances or capital contributions (excluding commission, travel and similar

                                       14

<PAGE>

advances to officers and employees made in the ordinary course of business and
excluding trade payables of the Company and its subsidiaries arising in the
ordinary course of business), purchases or other acquisitions for consideration
of Indebtedness, Equity Interests or other securities, together with all items
that are or would be classified as investments on a balance sheet prepared in
accordance with GAAP. If the Company or any Subsidiary of the Company sells or
otherwise disposes of any Equity Interests of any direct or indirect Subsidiary
of the Company such that, after giving effect to any such sale or disposition,
such Person is no longer a Subsidiary of the Company, the Company will be deemed
to have made an Investment on the date of any such sale or disposition equal to
the fair market value of the Equity Interests of such Subsidiary not sold or
disposed of in an amount determined as provided in Section 3.05(d). The
acquisition by the Company or any Subsidiary of the Company of a Person that
holds an Investment in a third Person will be deemed to be an Investment by the
Company or such Subsidiary in such third Person in an amount equal to the fair
market value of the Investment held by the acquired Person in such third Person
in an amount determined as provided in Section 3.05(d).

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

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

         "LIQUIDATED DAMAGES" has the meaning given to such term in any
Registration Rights Agreement.

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

         "MAKE-WHOLE AVERAGE LIFE" means the number of years (calculated to the
nearest one-twelfth) between the date of redemption and the Stated Maturity of
the Notes.

                                       15

<PAGE>

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

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

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

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

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

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

         "NET PROCEEDS" means the aggregate cash proceeds received by the
Company or any of its Restricted Subsidiaries in respect of any Asset Sale
(including, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of
the direct costs relating to such Asset Sale, including, without limitation,
legal, accounting and investment banking fees, and sales commissions, and any
relocation expenses incurred as a result of the Asset Sale, taxes paid or
payable as a result of the Asset Sale (as reasonably estimated by the Company),
in each case, after taking into account any available tax credits or deductions
and any tax sharing arrangements, and amounts required to be applied to the
repayment of Indebtedness secured by a Lien on the asset or assets that were the
subject of such Asset Sale and any reserve for adjustment in respect of the sale
price of such asset or assets established in accordance with GAAP.

         "NON-RECOURSE DEBT" means Indebtedness:

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

         (2) no default with respect to which (including any rights that the
holders of the Indebtedness may have to take enforcement action against an
Unrestricted

                                       16

<PAGE>

Subsidiary) would permit upon notice, lapse of time or both any holder of any
other Indebtedness (other than the Notes) of the Company or any of its
Restricted Subsidiaries to declare a default on such other Indebtedness or cause
the payment of the Indebtedness to be accelerated or payable prior to its stated
maturity; and

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

         "NOTES" means the Series A Notes and the Exchange Notes.

         "NOTES CUSTODIAN" means the Trustee, as custodian with respect to the
Notes in global form, or any successor entity thereto.

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

         "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, President,
Chief Financial Officer, Chief Accounting Officer or Treasurer.

         "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 or any parent corporation.

         "ORIGINAL INITIAL PURCHASERS" means Lehman Brothers Inc., Banc of
America Securities LLC, Credit Lyonnais Securities (USA) Inc., J.P. Morgan
Securities Inc., Salomon Smith Barney Inc., Scotia Capital (USA) Inc., TD
Securities (USA) Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated as
initial purchasers of the Series A Notes in the Original Offering.

         "ORIGINAL OFFERING" means the offering of the Series A Notes pursuant
to the Original Offering Memorandum.

         "ORIGINAL OFFERING MEMORANDUM" means the Offering Memorandum of the
Company, dated February 27, 2003, relating to the offering of the Series A
Notes.

                                       17

<PAGE>

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

         "PERMITTED INVESTMENTS" means:

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

         (2) any Investment in Cash Equivalents;

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

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

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

         (4) any Investment made as a result of the receipt of non-cash
consideration from an Asset Sale that was made pursuant to and in compliance
with Section 3.12 or any non-cash consideration that was excluded from the
definition of "Asset Sale" pursuant to clause (1) or (4) (for the sale or lease
of equipment) pursuant to the second paragraph of such definition;

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

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

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

         (8) Hedging Obligations permitted to be incurred under Section 3.06;

                                       18

<PAGE>

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

         (10) other Investments in any Person having an aggregate fair market
value (measured on the date each such Investment was made and without giving
effect to subsequent changes in value), when taken together with all other
Investments made pursuant to this clause (10) that are at the time outstanding
not to exceed $10 million.

         "PERMITTED LIENS" means:

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

         (2) Liens in favor of the Company or the Guarantors;

         (3) Liens on property of a Person existing at the time such Person is
merged with or into or consolidated with the Company or any Restricted
Subsidiary of the Company or renewals or replacement of such Liens in connection
with the incurrence of Permitted Refinancing Indebtedness to refinance
Indebtedness secured by such Liens; provided that such Liens were in existence
prior to the contemplation of such merger or consolidation and do not extend to
any assets other than those of the Person merged into or consolidated with the
Company or the Restricted Subsidiary;

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

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

         (6) Liens to secure Indebtedness (including Capital Lease Obligations)
permitted by Section 3.06(b)(4) covering only the assets acquired with such
Indebtedness;

         (7) Liens existing on the date of the Indenture;

                                       19

<PAGE>

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

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

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

         (11) Liens with respect to Indebtedness that at the time of incurrence
does not exceed 10% of the Consolidated Net Tangible Assets of the Company.

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

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

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

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

         (3) if the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded is subordinated in right of payment to the Notes and any
Subsidiary Guarantees, such Permitted Refinancing Indebtedness has a final
maturity date later than the final maturity date of, and is subordinated in
right of

                                       20

<PAGE>

payment to, the Notes and any Subsidiary Guarantees, as the case may be, on
terms at least as favorable to the Holders of Notes as those contained in the
documentation governing the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded; and

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

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

         "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 Notes held by such Initial Purchaser as part of its initial
distribution, a like aggregate principal amount of Private Exchange Notes.

         "PRIVATE EXCHANGE NOTES" means the Exchange Notes to be issued pursuant
to the Indenture to an Initial Purchaser in a Private Exchange.

         "PUBLIC EQUITY OFFERING" means an underwritten primary public offering,
after the date of the Indenture, of Capital Stock (other than Disqualified
Stock) of the Company pursuant to an effective registration statement under the
Securities Act other than an issuance registered on Form S-4 or S-8 or any
successor thereto or any issuance pursuant to employee benefit plans or
otherwise in compensation to officers, directors or employees.

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

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

         "QUALIFYING EXPANSION PROJECT AMOUNTS" means with respect to any
calculation of pro forma amounts under the Fixed Charge Coverage Ratio
additional revenues (if any) and related expenses for any Qualifying Expansion
Project for the portion of the four-quarter period prior to the in-service date
of such Qualifying Expansion Project (the "ESTIMATION PERIOD"); provided that
revenues and related expenses anticipated from any Qualifying Expansion Project
during any Estimation Period shall be included in such calculation only to the
extent (1) of the portion of the capacity of such Qualifying Expansion Project
that is committed under a long-term firm transportation contract on customary
terms

                                       21

<PAGE>

(as determined in good faith by the Company) with a counterparty that has an
Investment Grade Rating of its long-term debt from at least one of S&P and
Moody's and (2) the aggregate amount of Qualifying Expansion Project Amounts for
all Qualifying Expansion Projects included in any such calculation does not
exceed 25% of the aggregate revenues of the Company and its Restricted
Subsidiaries for such period, determined for this purpose on a pro forma basis
but before inclusion of any Qualifying Expansion Project Amounts.

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

         "REDEMPTION DATE" when used with respect to any Note to be redeemed,
means the date fixed for such redemption by or pursuant to the Indenture.

         "REDEMPTION PRICE" shall have the meaning assigned to such term in the
Notes.

         "REGISTRATION RIGHTS AGREEMENT" means any registration rights agreement
entered into by the Company relating to any Notes issued hereunder, including
without limitation, the Registration Rights Agreement, dated as of March 4,
2003, among the Company and the Original Initial Purchasers.

         "REGULATION S CERTIFICATE" means a letter to be delivered in connection
with transfers pursuant to Regulation S substantially in the form attached to
the Note.

         "RESPONSIBLE OFFICER" means, when used with respect to the Trustee, any
vice president, any assistant vice president, the secretary, any assistant
secretary, the treasurer, any assistant treasurer, or any trust officer or any
other officer of the Trustee within the Institutional Trust
Services-Conventional Debt Unit (or any successor unit, department or division
of the Trustee) located at the Corporate Trust Office of the Trustee who has
direct responsibility for the administration of this Indenture, and, for the
purposes of Section 6.01(c)(ii) and Section 6.05 hereof, shall also include any
other officer of the Trustee to whom any corporate trust matter is referred
because of such person's knowledge of and familiarity with the particular
subject.

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

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

                                       22

<PAGE>

         "RULE 144A CERTIFICATE" means a certificate to be completed by a
purchaser of a Note in reliance on Rule 144A substantially in the form attached
to the Note.

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

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

         "SEC" means the Securities and Exchange Commission.

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

         "SECURITIZATION SUBSIDIARY" means a Subsidiary of the Company (1) that
is designated a "Securitization Subsidiary" by the Board of Directors, (2) that
does not engage in, and whose charter prohibits it from engaging in, any
activities other than Permitted Receivables Financings and any activity
necessary, incidental or related thereto, (3) no portion of the Debt or any
other obligation, contingent or otherwise, of which (A) is Guaranteed by the
Company or any Restricted Subsidiary of the Company, (B) is recourse to or
obligates the Company or any Restricted Subsidiary of the Company in any way, or
(C) subjects any property or asset of the Company or any Restricted Subsidiary
of the Company, directly or indirectly, contingently or otherwise, to the
satisfaction thereof, (4) with respect to which neither the Company nor any
Restricted Subsidiary of the Company (other than an Unrestricted Subsidiary) has
any obligation to maintain or preserve such its financial condition or cause it
to achieve certain levels of operating results other than, in respect of clauses
(3) and (4), pursuant to customary representations, warranties, covenants and
indemnities entered into in connection with a Permitted Receivables Financing.

         "SERIES A NOTES" means the Company's 8% Series A Notes due 2010, to be
issued pursuant to the Indenture.

         "SHELF REGISTRATION STATEMENT" means a registration statement to be
filed by the Company, in connection with the offer and sale of Series A Notes or
Private Exchange Notes, pursuant to a Registration Rights Agreement.

                                       23

<PAGE>

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

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

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

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

         (2) any partnership (a) the sole general partner or the managing
general partner of which is such Person or a Subsidiary of such Person or (b)
the only general partners of which are that Person or one or more Subsidiaries
of that Person (or any combination thereof).

         "SUBSIDIARY GUARANTEE" means each Guarantee of the Notes issued by a
Guarantor pursuant to the Indenture.

         "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 NOTES" with respect to any Notes, has the meaning
given to such term in the Registration Rights Agreement applicable to such
Notes.

         "TREASURY RATE" means the yield to maturity (calculated on a
semi-annual bond-equivalent basis) as determined by the Independent Investment
Banker at the time of the computation of United States Treasury securities with
a constant maturity (as compiled by and published in the most recent Federal
Reserve Statistical Release H.15 (510), which has become publicly available at
least two business days prior to the date of the redemption notice or, if such
statistical release is no longer published, any publicly available source of
similar market data) most nearly equal to the then remaining maturity of the
Notes; provided that if the Make-Whole Average Life of such Note is not equal to
the constant maturity of the United States Treasury security for which a weekly
average yield is given, the

                                       24

<PAGE>

Treasury Rate shall be obtained by linear interpolation (calculated to the
nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the
Make-Whole Average Life of such Note is less than one year, the weekly average
yield on actually traded United States Treasury securities adjusted to a
constant maturity of one year shall be used.

         "TRUSTEE" means the party named as such above until a successor
replaces it in accordance with the applicable provisions of the 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.

         "UNRESTRICTED SUBSIDIARY" means (1) any Securitization Subsidiary, (2)
NWP Enterprises, LLC, (3) NWP Enterprises, Inc., or (4) any Subsidiary of the
Company that is designated by the Board of Directors as an Unrestricted
Subsidiary pursuant to a Board Resolution, but only to the extent that such
Subsidiary:

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

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

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

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

         Any designation of a Subsidiary of the Company as an Unrestricted
Subsidiary will be evidenced to the Trustee by filing with the Trustee a
certified copy of the Board Resolution giving effect to such designation and an
Officers' Certificate certifying that such designation complied with the
preceding conditions and was permitted by Section 3.05. If, at any time, any
Unrestricted Subsidiary would fail to meet the preceding requirements as an
Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted
Subsidiary for purposes of the Indenture and

                                       25

<PAGE>

any Indebtedness of such Subsidiary will be deemed to be incurred by a
Restricted Subsidiary of the Company as of such date and, if such Indebtedness
is not permitted to be incurred as of such date under Section 3.06, the Company
will be in default of such covenant. The Board of Directors of the Company may
at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided that such designation will be deemed to be an incurrence of
Indebtedness by a Restricted Subsidiary of the Company of any outstanding
Indebtedness of such Unrestricted Subsidiary and such designation will only be
permitted if (1) such Indebtedness is permitted under Section 3.06, calculated
on a pro forma basis as if such designation had occurred at the beginning of the
four-quarter reference period; and (2) no Default or Event of Default would be
in existence following such designation.

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

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

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

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

         "WILLIAMS" means The Williams Companies, Inc.

         "WILLIAMS GROUP AFFILIATES" means Williams and its Subsidiaries other
than the Company and its Subsidiaries.

         SECTION 1.2.  Other Definitions.

<TABLE>
<CAPTION>
                        TERM                                   DEFINED IN SECTION
<S>                                                            <C>
Affiliate Transaction..................................             3.13(a)
Agent Members..........................................             2.01(c)
Asset Sale Offer.......................................             3.12(c)
Change of Control Payment..............................             3.11(a)
Change of Control Payment Date.........................             9.09(b)
Covenant Defeasance....................................             7.03(a)
DTC....................................................             2.03
</TABLE>

                                       26

<PAGE>

<TABLE>
<CAPTION>
                        TERM                                   DEFINED IN SECTION
<S>                                                            <C>
Event of Default.......................................             5.01
Excess Proceeds........................................             3.12(c)
Global Note............................................             2.01(b)
Incremental Funds......................................             3.05(a)
Investment Grade Date..................................             7.04
Legal Defeasance.......................................             7.02(a)
Paying Agent...........................................             2.03
Payment Default........................................             5.01(a)
Permitted Debt.........................................             3.06(b)
Pipeline Business......................................             4.01(b)
Purchase Amount........................................             9.09(b)
Registrar..............................................             2.03
Regulation S...........................................             2.01(b)
Restricted Notes Legend................................             2.01(a)
Restricted Payments....................................             3.05(a)
Rule 144A..............................................             2.01(b)
</TABLE>

         SECTION 1.3. 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 Commission.

         "INDENTURE SECURITIES" means the Notes.

         "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 1.4. Rules of Construction. Unless the context otherwise
requires:

         (a  a term has the meaning assigned to it;

                                       27

<PAGE>

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

         (c  "or" is not exclusive;

         (d  words in the singular include the plural, and in the plural include
the singular; and

         (e  provisions apply to successive events and transactions.

                                    ARTICLE 2

                                    THE NOTES

         SECTION 2.1. Form and Dating. (a General. The Notes and the Trustee's
certificate of authentication shall be substantially in the form of Exhibit A to
the Indenture, the terms of which are hereby incorporated into the Indenture.
The Notes 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. The
Notes 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 Notes shall constitute, and are hereby expressly made, a part of the
Indenture and to the extent applicable, the Company, by its execution and
delivery of the Indenture, expressly agrees to such terms and provisions and to
be bound thereby. The Notes shall be dated the date of their authentication.

         (b) Global Notes. Series A Notes offered and sold (i) to QIBs in
reliance on Rule 144A under the Securities Act ("RULE 144A") shall be issued
initially in the form of one or more permanent global Notes in definitive, fully
registered form without interest coupons with the global securities legend and
restricted securities legend (the "RESTRICTED NOTES LEGEND") set forth in
Section 2.06 (each, a "RULE 144A GLOBAL NOTE") and (ii) in reliance on
Regulation S under the Securities Act ("REGULATION S") shall be issued initially
in the form of one or more permanent global notes with the global securities
legend and restricted securities legend set forth in Section 2.06 (each, a
"REGULATION S GLOBAL NOTE" and, together with the Rule 144A Global Notes, the
"GLOBAL Notes"). Each Global Note shall be deposited on behalf of the purchasers
of the Series A Notes represented thereby with the Trustee, at its New York
office, as custodian for the Depositary (or with

                                       28

<PAGE>

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 Notes 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 Note 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
Notes that shall be registered in the name of the Depositary for such Global
Note or Global Notes or the nominee of such Depositary and 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 the Indenture with respect to any Global Note held on their
behalf by the Depositary or by the Trustee as the custodian of the Depositary or
under such Global Note, and the Depositary shall be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the absolute owner of
such Global Note 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 Note.

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

         SECTION 2.2. Execution and Authentication. One Officer of the Company
shall sign the Notes 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 Notes and may be in facsimile form.

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

                                       29
<PAGE>

         A Note shall not be entitled to any benefit under the 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 Note has been authenticated under the Indenture.

         The Trustee shall authenticate (i) for original issue on the Initial
Issue Date, Series A Notes in the aggregate principal amount of $175,000,000,
(ii) Exchange Notes for original issue, pursuant to any Exchange Offer or
Private Exchange, for a like principal amount of Series A Notes and (iii) any
amount of additional Notes 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 Notes to be authenticated and the date of
original issue thereof, and (b) whether the Notes are Series A Notes or Exchange
Notes. The aggregate principal amount of Notes of any series outstanding at any
time may not exceed the aggregate principal amount of Notes 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 Notes of any series that may be
issued under the Indenture shall not be limited.

         The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Notes. Unless limited by the terms of such appointment,
an authenticating agent may authenticate Notes whenever the Trustee may do so.
Each reference in the 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 Notes and the Exchange Notes shall be considered
collectively to be a single class for all purposes of the Indenture, including,
without limitation, waivers, amendments, redemptions and offers to purchase.

         SECTION 2.3. Registrar and Paying Agent. The Company shall maintain an
office or agency where Notes may be presented for registration of transfer or
exchange ("REGISTRAR") and an office or agency where Notes may be presented for
payment ("PAYING AGENT"). The Registrar shall keep a register of the Notes 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.

         The Company shall enter into an appropriate agency agreement with any
Registrar or Paying Agent not a party to the Indenture. Such agreement shall
implement the provisions of the Indenture that relate to such Agent. The Company
shall notify the Trustee of the name and address of any Agent not a party

                                       30

<PAGE>

to the 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 Note.

         SECTION 2.4. 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 or Liquidated Damages, if any, on the Notes, 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 2.5. 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 2.6. Transfer and Exchange.

         (a) Transfer and Exchange of Global Notes. (i) The transfer and
exchange of Global Notes or beneficial interests therein shall be effected
through the Depositary, in accordance with the 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 Note
(other than a transfer of a beneficial interest in a Global Note for a
beneficial interest in the same Global Note) shall deliver to the Registrar a
written order given in accordance with the

                                       31

<PAGE>

Depositary's procedures containing information regarding the participant account
of the Depositary to be credited with a beneficial interest in the Global Note.
The Registrar shall, subject to this Section 2.06, 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 Note and to
debit the account of the Person making the transfer the beneficial interest in
the Global Note being transferred. The Trustee shall refuse to register any
requested transfer or exchange that does not comply with the preceding sentence.

                  (ii)  Notwithstanding any other provisions of the Indenture
         (other than the provisions set forth in Section 2.07), a Global Note
         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 or any such
         nominee to a successor Depositary or a nominee of such successor
         Depositary.

                  (iii) If a Global Note is exchanged for Notes 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 Notes, such Notes 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 Notes 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. Except as permitted by the following paragraphs (c), (d),
(e) and (f), each Note certificate evidencing the Global Notes (and all Notes
issued in exchange therefor or in substitution thereof) shall bear a legend in
substantially the following form:

                  THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
                  SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
                  OTHER SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR
                  PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
                  TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN
                  THE ABSENCE OF SUCH REGISTRATION UNLESS THE TRANSACTION IS
                  EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
                  OF THE

                                       32

<PAGE>

                  SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE
                  HEREOF (1) REPRESENTS THAT (A) IT IS A "QUALIFIED
                  INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
                  SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS
                  ACQUIRING ITS NOTE IN AN "OFFSHORE TRANSACTION" PURSUANT TO
                  RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (2) AGREES
                  THAT IT WILL NOT PRIOR TO (X) THE DATE WHICH IS TWO YEARS (OR
                  SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER
                  THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER)
                  AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR OF ANY
                  PREDECESSOR OF THIS NOTE) OR THE LAST DAY ON WHICH THE COMPANY
                  OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR
                  ANY PREDECESSOR OF THIS NOTE) AND (Y) SUCH LATER DATE, IF ANY,
                  AS MAY BE REQUIRED BY APPLICABLE LAW (THE "RESALE RESTRICTION
                  TERMINATION DATE"), OFFER, SELL OR OTHERWISE TRANSFER THIS
                  NOTE EXCEPT (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION
                  STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
                  SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR
                  RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY
                  BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN
                  RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN
                  ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER
                  TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
                  RELIANCE ON RULE 144A INSIDE THE U.S., (D) PURSUANT TO OFFERS
                  AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE U.S.
                  WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR
                  (E) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
                  REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES
                  THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS
                  TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
                  LEGEND; PROVIDED THAT THE COMPANY, THE TRUSTEE AND THE
                  REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE
                  OR TRANSFER (I) PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE
                  DELIVERY OF AN OPINION OF COUNSEL,

                                       33

<PAGE>

                  CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH
                  OF THEM, AND (II) IN EACH OF THE FOREGOING CASES, TO REQUIRE
                  THAT A CERTIFICATION OF TRANSFER IN THE FORM APPEARING ON THE
                  OTHER SIDE OF THIS NOTE IS COMPLETED AND DELIVERED BY THIS
                  TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON
                  THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
                  TERMINATION DATE. AS USED HEREIN, THE TERMS "OFFSHORE
                  TRANSACTION," "U.S." AND "U.S. PERSON" HAVE THE MEANINGS GIVEN
                  TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

         (c)      Certification Requirements. Subject to paragraph (e), the
transfer or exchange of any Note (or a beneficial interest therein) of the type
set forth in column A below for a Note (or a beneficial interest therein) of the
type set forth opposite in column B below may only be made in compliance with
the certification requirements (if any) described in the clause of this
paragraph set forth opposite in column C below.

         A                          B                                   C
         Rule 144A Global Note      Rule 144A Global Note              (i)
         Rule 144A Global Note      Regulation S Global Note           (ii)
         Rule 144A Global Note      Certificated Note                  (iii)
         Regulation S Global Note   Rule 144A Global Note              (iv)
         Regulation S Global Note   Regulation S Global Note           (i)
         Regulation S Global Note   Certificated Note                  (v)
         Certificated Note          Rule 144A Global Note              (iv)
         Certificated Note          Regulation S Global Note           (ii)
         Certificated Note          Certificated Note                  (iii)

                  (i)      No certification is required.

                  (ii)     The Person requesting the transfer or exchange must
         deliver or cause to be delivered to the Trustee a duly completed
         Regulation S Certificate; provided that if the requested transfer or
         exchange is made by the Holder of a Certificated Note that does not
         bear the Restricted Notes Legend, then no certification is required.

                  (iii)    The Person requesting the transfer or exchange must
         deliver or cause to be delivered to the Trustee (x) a duly completed
         Rule 144A

                                       34

<PAGE>

         Certificate or (y) a duly completed Regulation S Certificate and/or an
         Opinion of Counsel and such other certifications and evidence as the
         Company may reasonably require in order to determine that the proposed
         transfer or exchange is being made in compliance with the Securities
         Act and any applicable securities laws of any state of the United
         States; provided that if the requested transfer or exchange is made by
         the Holder of a certificated Note that does not bear the Restricted
         Notes Legend, then no certification is required. In the event that (i)
         the requested transfer or exchange takes place after the Restricted
         Period and a duly completed Regulation S Certificate is delivered to
         the Trustee or (ii) a certificated Note that does not bear the
         Restricted Notes Legend is surrendered for transfer or exchange, upon
         transfer or exchange the Trustee will deliver a certificated Note that
         does not bear the Restricted Notes Legend.

                  (iv)     The Person requesting the transfer or exchange must
         deliver or cause to be delivered to the Trustee a duly completed Rule
         144A Certificate.

                  (v)      Notwithstanding anything to the contrary contained
         herein, no such exchange is permitted if the requested exchange is made
         during the Restricted Period. If the requested transfer involves a
         beneficial interest in a Regulation S Global Note during the Restricted
         Period, the Person requesting the transfer must deliver or cause to be
         delivered to the Trustee a duly completed Rule 144A Certificate and/or
         an Opinion of Counsel and such other certifications and evidence as the
         Company may reasonably require in order to determine that the proposed
         transfer is being made in compliance with the Securities Act and any
         applicable securities laws of any state of the United States. If the
         requested transfer or exchange involves a beneficial interest in a
         Regulation S Global Note after the Restricted Period, no certification
         is required and the Trustee will deliver a certificated Note that does
         not bear the Restricted Notes Legend.

         (d) Rule 144A Transfers. Upon any sale or transfer of a Transfer
Restricted Note (including any Transfer Restricted Note represented by a Rule
144A Global Note) pursuant to Rule 144 under the Securities Act, the Registrar
shall permit the Holder thereof to exchange such Transfer Restricted Note for a
Note (or, in the case of any Transfer Restricted Note that is represented by a
Rule 144A Global Note, an interest in a Global Note) that does not bear the
legend set forth above and rescind any restriction on the transfer of such
Transfer Restricted Note, 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 Note).

                                       35

<PAGE>

         (e) Transfers Pursuant to an Effective Shelf Registration Statement.
After a transfer of any Series A Notes or Private Exchange Notes during the
period of the effectiveness of and pursuant to a Shelf Registration Statement
with respect to such Series A Notes or Private Exchange Notes, as the case may
be, all requirements pertaining to legends on such Note or such Private Exchange
Note will cease to apply.

         (f) Transfers Pursuant to a Registered Exchange Offer. Upon the
consummation of a Registered Exchange Offer with respect to the Series A Notes
pursuant to which Holders of such Series A Notes are offered Exchange Notes in
exchange for their Series A Notes, Exchange Notes in certificated or global form
(depending on whether certificated Notes or interests in Global Notes are
exchanged), in each case not bearing the Restricted Notes Legend, will be
available to Holders that exchange such Series A Notes in such Exchange Offer.

         (g) Private Exchanges. Upon the consummation of a Private Exchange with
respect to the Series A Notes pursuant to which Holders of such Series A Notes
are offered Private Exchange Notes in exchange for their Series A Notes, Private
Exchange Notes in certificated or global form (depending on whether certificated
Notes or interests in Global Notes are exchanged) with the Restricted Notes
Legend will be available to Holders that exchange such Series A Notes in such
Private Exchange.

         (h) Cancellation or Adjustment of Global Note. At such time as all
beneficial interests in a Global Note have either been exchanged for
certificated Notes, redeemed, repurchased or canceled, such Global Note 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 Note is exchanged for certificated Notes, redeemed, repurchased or
canceled, the principal amount of Notes represented by such Global Note shall be
reduced and an adjustment shall be made on the books and records of the Trustee
(if it is then the Notes Custodian for such Global Note) with respect to such
Global Note, by the Trustee or the Notes Custodian, to reflect such reduction.

         (i) Obligations with Respect to Transfers and Exchanges of Notes.

                  (i)      To permit registrations of transfers and exchanges,
         the Company shall execute and the Trustee shall authenticate
         certificated Notes and Global Notes 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

                                       36

<PAGE>

         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 Note
         selected for redemption in whole or in part pursuant to Article IX,
         except the unredeemed portion of any certificated Note being redeemed
         in part, or (b) any Note for a period beginning 15 Business Days before
         the mailing of a notice of an offer to repurchase or redeem Notes or 15
         Business Days before an interest payment date.

                  (iii)    Prior to the due presentation for registration of
         transfer of any Note, the Company, the Trustee, the Paying Agent, the
         Registrar or any co-Registrar may deem and treat the Person in whose
         name a Note is registered as the absolute owner of such Note for the
         purpose of receiving payment of principal of, premium, if any, and
         interest and Liquidated Damages, if any, on such Note and for all other
         purposes whatsoever, whether or not such Note 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 Notes issued upon any transfer or exchange
         pursuant to the terms of the Indenture shall evidence the same debt and
         shall be entitled to the same benefits under the Indenture as the Notes
         surrendered upon such transfer or exchange.

         (j) No Obligation of the Trustee.

                  (i)      The Trustee shall have no responsibility or
         obligation to any beneficial owner of a Global Note, 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 Notes 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
         Notes. All notices and communications to be given to the Holders and
         all payments to be made to Holders under the Notes 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 Note). The
         rights of beneficial owners in any Global Note 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

                                       37

<PAGE>

         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 the Indenture or under applicable law with
         respect to any transfer of any interest in any Note (including any
         transfers between or among Depositary participants, members or
         beneficial owners in any Global Note) 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 the Indenture, and to examine the same to determine substantial
         compliance as to form with the express requirements hereof.

         SECTION 2.7.  Certificated Notes.

         (a)      A Global Note 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 Notes
in an aggregate principal amount equal to the principal amount of such Global
Note, in exchange for such Global Note, 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 Note 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, (ii) the Company, in its sole discretion, notifies the Trustee in
writing that it elects to cause the issuance of certificated Notes under the
Indenture; or (iii) there has occurred and is continuing a Default or Event of
Default with respect to the Notes.

         (b)      Any Global Note 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 Note, an equal aggregate principal amount of certificated Notes
of authorized denominations. Any portion of a Global Note 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 Note delivered in
exchange for an interest in the Global Note shall, except as otherwise provided
by Section 2.06(c), 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 Note may grant proxies and otherwise authorize any Person,
including

                                       38

<PAGE>

Agent Members and Persons that may hold interests through Agent Members, to take
any action which a Holder is entitled to take under the Indenture or the Notes.

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

         (e)      If a certificated Note issued pursuant to this Section 2.07 is
exchanged for another certificated Note 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 Notes, such Notes 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 Notes 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).

         SECTION 2.8.  Replacement Notes.

         If any mutilated Note is surrendered to the Trustee, or the Company and
the Trustee receive evidence to their satisfaction of the destruction, loss or
theft of any Note, the Company shall issue and the Trustee shall authenticate a
replacement Note, 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 Note is replaced. The Company and the Trustee may
charge for their expenses in replacing a Note. If, after the delivery of such
replacement Note, a bona fide purchaser of the original Note in lieu of which
such replacement Note was issued presents for payment or registration such
original Note, the Trustee shall be entitled to recover such replacement Note
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 Note is an additional obligation of the Company.

         SECTION 2.9.  Outstanding Notes.

         The Notes outstanding at any time are all the Notes authenticated by
the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Note effected by the
Trustee hereunder and

                                       39

<PAGE>

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 Notes are present at a meeting of holders of Notes for quorum
purposes or have consented to or voted in favor of any request, demand,
authorization, direction, notice, consent, waiver, amendment or modification
hereunder, Notes 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 Notes which a Responsible Officer of the Trustee actually knows to be so
owned shall be so disregarded.

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

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

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

         SECTION 2.10.  Treasury Notes.

         In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes 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 Notes which a Responsible Officer of the
Trustee actually knows are so owned shall be so disregarded.

         SECTION 2.11.  Temporary Notes.

         Until definitive Notes are ready for delivery, the Company may prepare
and the Trustee shall authenticate temporary Notes. Temporary Notes shall be
substantially in the form of definitive Notes, but may have variations that the
Company considers appropriate for temporary Notes. Without unreasonable delay,
the Company shall prepare and the Trustee shall authenticate definitive Notes in
exchange for temporary Notes. Until so exchanged, the temporary Notes shall in
all respects be entitled to the same benefits under the Indenture as definitive
Notes.

         SECTION 2.12.  Cancellation.

         The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any

                                       40

<PAGE>

Notes surrendered to them for registration of transfer, exchange or payment. The
Trustee shall cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement or cancellation. All canceled Notes held by the
Trustee shall be disposed of in accordance with the usual disposal procedures of
the Trustee. The Company may not issue new Notes to replace Notes 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 Notes, 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
Notes 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 Note is registered as the owner of such Note
for the purpose of receiving payments of principal of or premium, if any, or
interest on such Note 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 Notes 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 Notes or as contained in
any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, 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 3

                                    COVENANTS

         SECTION 3.1.   Payment of Notes. The Company shall pay the principal of
and premium, if any, Liquidated Damages, if any, and interest on the Notes on
the

                                       41

<PAGE>

dates and in the manner provided in the Notes and in the 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.

         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 Notes.

         SECTION 3.2.   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
Notes may be presented for registration of transfer or exchange, where Notes may
be presented for payment and where notices and demands to or upon the Company in
respect of the Notes and the 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 11.02 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 Notes 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 3.3.   Commission Reports; Financial Statements. (a) Whether or
not required by the Commission, so long as any Notes are outstanding, the
Company will furnish to the Trustee, within 15 days after the time periods
specified in the Commission's rules and regulations:

                                       42

<PAGE>

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

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

         (b)      If the Company has designated any of its Subsidiaries as
Unrestricted Subsidiaries, then the quarterly and annual financial information
required by paragraph (a) will include a reasonably detailed presentation,
either on the face of the financial statements or in the footnotes thereto, and
in Management's Discussion and Analysis of Financial Condition and Results of
Operations (or, as applicable, in Management's Narrative and Analysis of Results
of Operations), of the financial condition and results of operations of the
Company and its Restricted Subsidiaries separate from the financial condition
and results of operations of the Unrestricted Subsidiaries of the Company.

         (c)      In addition, following the consummation of the Exchange Offer,
whether or not required by the Commission, the Company will file a copy of all
of the information and reports referred to in clauses (1) and (2) above with the
Commission for public availability within the time periods specified in the
Commission's rules and regulations (unless the Commission will not accept such a
filing) and make such information available to securities analysts and
prospective investors upon request. In addition, the Company and the Guarantors
will, for so long as any Notes remain outstanding, furnish to the Holders and to
securities analysts and prospective investors, upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.

         (d)      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.

         (e)      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

                                       43

<PAGE>

of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officer's Certificates).

         SECTION 3.4.   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
the Indenture, and further stating, as to each such Officer signing such
statement, that to his knowledge, the Company has kept, observed, performed and
fulfilled each and every covenant contained in the 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).

         SECTION 3.5.   Limitation on Restricted Payments. (a) The Company will
not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly:

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

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

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

                                       44

<PAGE>

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

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

                  (1)   if the Fixed Charge Coverage Ratio for the Company's
four most recent fiscal quarters for which internal financial statements are
available is not less than 1.75 to 1.0, such Restricted Payment, together with
the aggregate amount of all other Restricted Payments made by the Company and
its Restricted Subsidiaries after the end of the fiscal year of the Company then
most recently ended for which internal financial statements are available, is
less than the sum, without duplication, of:

                           (A)      Available Cash Flow from Operations for the
                  fiscal year of the Company then most recently ended for which
                  internal financial statements are available, plus

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

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

                           (D)      to the extent that any Unrestricted
                  Subsidiary of the Company is redesignated as a Restricted
                  Subsidiary after the date of

                                       45

<PAGE>

                  the Indenture, the lesser of (i) the fair market value of the
                  Company's Investment in such Subsidiary as of the date of such
                  redesignation or (ii) such fair market value as of the date on
                  which such Subsidiary was originally designated as an
                  Unrestricted Subsidiary (the amount determined at any time
                  pursuant to items (b), (c) and (d) being referred to as the
                  "INCREMENTAL FUNDS"); minus

                           (E)      the aggregate amount of Restricted Payments
                  previously made in reliance on Incremental Funds pursuant to
                  this clause (1) or clause (2) below; or

                  (2)   if the Fixed Charge Coverage Ratio for the Company's
         four most recent fiscal quarters for which internal financial
         statements are available is less than 1.75 to 1.0, such Restricted
         Payment, together with the aggregate amount of all other Restricted
         Payments made by the Company and its Restricted Subsidiaries during the
         period commencing on the date such internal financial statements are
         available and ending on the date the next quarterly internal financial
         statements are available (such Restricted Payments for purposes of this
         clause (2) meaning only distributions on the Company's common stock and
         loans and advances to Williams and its Subsidiaries), is less than the
         sum, without duplication, of:

                           (A)      $50.0 million less the aggregate amount of
                  all Restricted Payments made by the Company pursuant to this
                  clause (2)(A) during the period ending on the last day
                  immediately preceding the date on which such internal
                  financial statements are available and beginning on the date
                  of the Indenture; plus

                           (B)      the aggregate amount of Incremental Funds at
                  such time minus the aggregate amount of Restricted Payments
                  previously made in reliance on such Incremental Funds pursuant
                  to this clause (2) or clause (1) above.

         (b)      Notwithstanding the foregoing, the preceding provisions will
not prohibit:

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

                  (ii)     so long as no Default or Event of Default has
         occurred and is continuing or would be caused thereby, the redemption,
         repurchase, retirement, defeasance or other acquisition of any
         subordinated

                                       46

<PAGE>

         Indebtedness of the Company or any Guarantor or of any Equity Interests
         of the Company in exchange for, or out of the net cash proceeds of, the
         substantially concurrent (a) contribution (other than from a Subsidiary
         of the Company) to the equity capital of the Company or (b) sale (other
         than to a Subsidiary of the Company) of, Equity Interests of the
         Company (other than Disqualified Stock); provided that the amount of
         any such net cash proceeds that are utilized for any such redemption,
         repurchase, retirement, defeasance or other acquisition will be
         excluded from clause (1) (B) of the preceding paragraph;

                  (iii)    so long as no Default or Event of Default has
         occurred and is continuing or would be caused thereby, the defeasance,
         redemption, repurchase or other acquisition of subordinated
         Indebtedness of the Company or any Guarantor with the net cash proceeds
         from an incurrence of Permitted Refinancing Indebtedness;

                  (iv)     the payment of any distribution or dividend by a
         Restricted Subsidiary of the Company or to the holders of such
         Restricted Subsidiary's Equity Interests on a pro rata basis;

                  (v)      so long as no Default or Event of Default has
         occurred and is continuing or would be caused thereby, dividends,
         distributions or advances to Williams Group Affiliates, at times and in
         amounts equal to amounts expended by Williams for the repurchase,
         redemption or acquisition or retirement for value of any Equity
         Interests of Williams held by any member of the Company's (or any of
         its Restricted Subsidiaries') management pursuant to any management
         equity subscription agreement, stock option agreement or similar
         agreement; provided that the aggregate price paid for all such
         repurchased, redeemed, acquired or retired Equity Interests may not
         exceed $2.0 million in any twelve-month period and provided further
         that if the amount so paid in any calendar year is less than $2.0
         million, such shortfall may be used to so repurchase, redeem, acquire
         or retire Equity Interests in either of the next two calendar years in
         addition to the $2.0 million that may otherwise be paid in each such
         calendar year; and

                  (vi)     prior to the Credit Agreement Refinancing Date, the
         ability (i) to pay, directly or indirectly, dividends or make any other
         distributions in respect of its capital stock or pay any Debt or other
         obligation owed to Williams or any of its Subsidiaries, or (ii) to make
         loans or advances to Williams or any of its Subsidiaries.

         (c)      In computing the amount of Restricted Payments previously made
for purposes of the immediately preceding paragraph, Restricted Payments made

                                       47

<PAGE>

under clause (i) (but only if the declaration or such dividend or other
distribution has not been counted in a prior period), clause (iv) (but only to
the extent of amounts paid to Holders other than the Company or any of its
Restricted Subsidiaries), clause (v) and clause (vi) of this paragraph shall be
included, and Restricted Payments made under clauses (ii), (iii) and (iv)
(except as noted above) shall be excluded.

         (d)      The amount of all Restricted Payments (other than cash) will
be the fair market value on the date of the Restricted Payment of the asset(s)
or securities proposed to be transferred or issued by the Company or such
Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.
The fair market value of any assets or securities that are required to be valued
by this covenant will be determined, in the case of amounts under $5.0 million,
by an Officer of the Company and, in the case of amounts over $5.0 million, by
the Board of Directors of the Company.

         SECTION 3.6.   Limitation on Incurrence of Indebtedness and Issuance of
Preferred Stock.

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

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

                  (i)      the incurrence by the Company and any Guarantor of
         additional Indebtedness and letters of credit under any Credit
         Facilities to which the Company is a party in an aggregate principal
         amount at any one time outstanding under this clause (i) (with letters
         of credit being deemed to have a principal amount equal to the undrawn
         face amount thereof) not to exceed $400 million;

                                       48

<PAGE>

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

                  (iii)    the incurrence by the Company of Indebtedness
         represented by the Notes issued and sold in this offering and any
         Subsidiary Guarantees issued pursuant to the Indenture;

                  (iv)     the incurrence by the Company and any of its
         Restricted Subsidiaries of Indebtedness represented by Capital Lease
         Obligations, mortgage financings or purchase money obligations, in each
         case, incurred for the purpose of financing all or any part of the
         purchase price or cost of construction or improvement of property,
         plant or equipment used in the business of the Company or such
         Restricted Subsidiary, in an aggregate principal amount not to exceed
         $5 million at any time outstanding;

                  (v)      the incurrence by the Company or any of its
         Restricted Subsidiaries of Permitted Refinancing Indebtedness in
         exchange for, or the net proceeds of which are used to refund,
         refinance or replace Indebtedness (other than intercompany
         Indebtedness) that was permitted by the Indenture to be incurred under
         paragraph (a) of this Section 3.06 or clauses (ii), (iii), (iv) or (v)
         of this paragraph (b) of this Section 3.06;

                  (vi)     the incurrence by the Company or any of its
         Restricted Subsidiaries of intercompany Indebtedness between or among
         the Company and any of its Restricted Subsidiaries; provided, however,
         that:

                           (A)      if the Company or any Guarantor is the
                  obligor on such Indebtedness, such Indebtedness must be
                  expressly subordinated to the prior payment in full in cash of
                  all Obligations with respect to the Notes, in the case of the
                  Company, or the Subsidiary Guarantee, in the case of a
                  Guarantor; and

                           (B)      (i) any subsequent issuance or transfer of
                  Equity Interests that results in any such Indebtedness being
                  held by a Person other than the Company or a Restricted
                  Subsidiary of the Company and (ii) any sale or other transfer
                  of any such Indebtedness to a Person that is not either the
                  Company or a Restricted Subsidiary of the Company, will be
                  deemed, in each case, to constitute an incurrence of such
                  Indebtedness by the Company or such Restricted Subsidiary, as
                  the case may be, that was not permitted by this clause (vi);

                                       49

<PAGE>

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

                  (viii)   the guarantee by any of the Guarantors of
         Indebtedness of the Company or any Guarantor of the Company that was
         permitted to be incurred by another provision of this Section 3.06;

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

                  (x)      the incurrence by the Company or any of its
         Restricted Subsidiaries of additional Indebtedness in an aggregate
         principal amount (or accreted value, as applicable) at any time
         outstanding, including all Permitted Refinancing Indebtedness incurred
         to refund, refinance or replace any Indebtedness incurred pursuant to
         this clause (x), not to exceed $25 million.

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

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

                  (i)      in the event that an item of proposed Indebtedness
         (including Acquired Debt) meets the criteria of more than one of the
         categories of Permitted Debt described in clauses (i) through (x) of
         paragraph (b) of this Section 3.06, or is entitled to be incurred
         pursuant to paragraph (a) of this Section, the Company will be
         permitted to classify (or later classify or reclassify in whole or in
         part in its sole discretion) such item of Indebtedness in any manner
         that complies with this Section;

                  (ii)     the accrual of interest, the accretion or
         amortization of original issue discount, the payment of interest on any
         Indebtedness in the form of additional Indebtedness with the same
         terms, and the payment of dividends on Disqualified Stock in the form
         of additional shares of the same class of Disqualified Stock will not
         be deemed to be an incurrence of Indebtedness or an issuance of
         Disqualified Stock for purposes of this

                                       50

<PAGE>

         Section, provided, in each such case, that the amount thereof is
         included in the computation of Fixed Charges of the Company as accrued;
         and

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

         SECTION 3.7.   Limitation on Liens. The Company will not, and will not
permit any of its Restricted Subsidiaries to, create, incur, assume or otherwise
cause or suffer to exist or become effective any Lien of any kind securing
Indebtedness, Attributable Debt or trade payables (other than Permitted Liens)
upon any of their property or assets, now owned or hereafter acquired, unless
all payments due under the Indenture and the Notes are secured on an equal and
ratable basis with the obligations so secured until such time as such
obligations are no longer secured by a Lien or, in the case of any obligation so
secured that is expressly subordinated to the Notes or any Subsidiary Guarantee,
as applicable, by a Lien prior to any Liens securing any and all obligations
thereby secured for so long as any such obligations shall be so secured.

         SECTION 3.8.   Limitation on Dividend and Other Payment Restrictions
Affecting Restricted Subsidiaries. (a) The Company will not, and will not permit
any of its Restricted Subsidiaries to, directly or indirectly, create or permit
to exist or become effective any consensual encumbrance or restriction on the
ability of any Restricted Subsidiary to:

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

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

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

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

                  (i)      agreements governing Existing Indebtedness and the
         Credit Agreement as in effect on the date of the Indenture and any
         amendments,

                                       51

<PAGE>

         modifications, restatements, renewals, increases, supplements,
         refundings, replacements or refinancings of those agreements, provided
         that the amendments, modifications, restatements, renewals, increases,
         supplements, refundings, replacement or refinancings are no more
         restrictive in any material respect, taken as a whole, with respect to
         such dividend and other payment restrictions than those contained in
         the respective agreements on the date of the Indenture, as determined
         by the Board of Directors of the Company in their reasonable and good
         faith judgment;

                  (ii)     the Indenture, the Notes and the Subsidiary
         Guarantees;

                  (iii)    applicable law;

                  (iv)     any instrument governing Indebtedness or Capital
         Stock of a Person acquired by the Company or any of its Restricted
         Subsidiaries as in effect at the time of such acquisition (except to
         the extent such Indebtedness or Capital Stock was incurred in
         connection with or in contemplation of such acquisition), which
         encumbrance or restriction is not applicable to any Person, or the
         properties or assets of any Person, other than the Person, or the
         property or assets of the Person, so acquired, provided that, in the
         case of Indebtedness, such Indebtedness was permitted by the terms of
         the Indenture to be incurred;

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

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

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

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

                                       52

<PAGE>

                  (ix)     Liens securing Indebtedness otherwise permitted to be
         incurred under the provisions of Section 3.07 that limit the right of
         the debtor to dispose of the assets subject to such Liens;

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

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

         SECTION 3.9.   Additional Interest. If, at any time and from time to
time after the date of the Indenture but prior to the earlier of (1) the Credit
Agreement Refinancing Date and (2) the Investment Grade Date, the Fixed Charge
Coverage Ratio for the Company's four most recent fiscal quarters for which
internal financial statements are available is less than 1.75 to 1.0, then, from
(A) the date of any such determination until (B) the earliest of (1) the next
date (if any) on which the Fixed Charge Coverage Ratio for the Company's four
most recent fiscal quarters then most recently ended for which internal
financial statements are available is equal to or greater than 1.75 to 1.0, (2)
the Credit Agreement Refinancing Date and (3) the Investment Grade Date, the
interest rate otherwise applicable to the Notes will be increased by a rate of
1.00% per annum. The Company shall give prompt written notice to the Trustee of
any such increase or decrease in the interest rate applicable to the Notes
pursuant to this Section 3.09.

         SECTION 3.10.  Guaranties by Restricted Subsidiaries. If the Company or
any of its Restricted Subsidiaries acquires or creates another Domestic
Restricted Subsidiary after the date of the Indenture, then that newly acquired
or created Domestic Restricted Subsidiary will become a Guarantor and execute a
Supplemental Indenture in the form of Exhibit B and deliver to the Trustee an
Opinion of Counsel to the effect that the Supplemental Indenture has been duly
authorized, executed and delivered by such Domestic Restricted Subsidiary and
constitutes a valid and binding obligation of such Domestic Restricted
Subsidiary, enforceable against such Domestic Restricted Subsidiary in
accordance with its terms (subject to customary exceptions), all within 10
Business Days of the date on which it was acquired or created; provided,
however, that the foregoing shall not apply to Subsidiaries that have properly
been designated as Unrestricted Subsidiaries in accordance with the Indenture
for so long as they continue to constitute Unrestricted Subsidiaries.

                                       53

<PAGE>

         SECTION 3.11.  Repurchase of Notes upon a Change of Control. (a)
Subject to paragraph (b) of this Section, not later than 30 days following a
Change of Control, the Company will make a Change of Control Offer to purchase
all outstanding Notes at a purchase price (the "CHANGE OF CONTROL PAYMENT")
equal to 101% of the principal amount plus accrued and unpaid interest and
Liquidated Damages, if any, to the date of purchase; provided that the Company
will not be required to make a Change of Control Offer upon a Change of Control
if a third party makes the Change of Control Offer in the manner, at the times
and otherwise in compliance with the requirements set forth in the Indenture
applicable to a Change of Control Offer made by the Company and purchases all
Notes properly tendered and not withdrawn under the Change of Control Offer.

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

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

         SECTION 3.12.  Limitation on Asset Sales. (a) The Company will not, and
will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale
unless:

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

                  (ii)     the fair market value is determined by (a) an
         executive officer of the Company if the value is less than $10 million
         or (b) the Company's

                                       54

<PAGE>

         Board of Directors if the value is $10 million or more, as evidenced by
         a resolution of such Board of Directors;

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

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

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

                           (C)      property or assets received as consideration
                  for such Asset Sale that would otherwise constitute a
                  permitted application of Net Proceeds (or other cash in such
                  amount) under clauses (ii), (iii) or (iv) under paragraph (b)
                  of this Section.

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

                  (i)      to repay or prepay senior Indebtedness of the Company
         and/or the Guarantors under a Credit Facility;

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

                  (iii)    to make a capital expenditure; or

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

         (c)      Subject to paragraph (e) of this Section, to the extent that
the Company does not apply an amount of cash equal to the amount of such Net

                                       55

<PAGE>

Proceeds of any Asset Sale during such period as provided in paragraph (b) of
this Section, the amount not so applied (excluding Net Proceeds of any Asset
Sale of the Gray's Harbor lateral project and excluding Net Proceeds of any
Asset Sale to the extent of the amount of acquisitions or capital expenditures
described under clauses (ii), (iii) or (iv) under paragraph (b) of this Section
made during the 365 days preceding the receipt of such Net Proceeds (other than
any portion of such amount that was funded with Net Proceeds of any other Asset
Sale or that has been allocated to exclude Net Proceeds of any other Asset Sales
under this provision)) will constitute "EXCESS PROCEEDS." When the aggregate
amount of Excess Proceeds exceeds $20.0 million, the Company will make an Asset
Sale Offer to all Holders of Notes and all holders of other Indebtedness that is
pari passu with the Notes containing provisions similar to those set forth in
the Indenture with respect to offers to purchase or redeem with the proceeds of
sales of assets to purchase the maximum principal amount of Notes and such other
pari passu Indebtedness that may be purchased out of the Excess Proceeds (each
such offer an "ASSET SALE OFFER"). The offer price in any Asset Sale Offer will
be equal to 100% of the principal amount plus accrued and unpaid interest and
Liquidated Damages, if any, to the date of purchase, and will be payable in
cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer,
the Company may use those Excess Proceeds for any purpose not otherwise
prohibited by the Indenture. If the aggregate principal amount of Notes and
other pari passu Indebtedness tendered into such Asset Sale Offer exceeds the
amount of Excess Proceeds, the Trustee will select the Notes and such other pari
passu Indebtedness to be purchased on a pro rata basis. Upon completion of each
Asset Sale Offer, the amount of Excess Proceeds will be reset at zero.

         (d)      The Company will comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder
to the extent those laws and regulations are applicable in connection with each
repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the
provisions of any securities laws or regulations conflict with the Asset Sale
provisions of the Indenture, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Section 3.12 by virtue of such conflict.

         (e)      Prior to making any Asset Sale Offer, but in any event within
30 days following the date on which such Asset Sale Offer would otherwise be
required, if the Company or any of its Williams Group Affiliates is subject to
any agreement evidencing Indebtedness (or commitments to extend Indebtedness)
that prohibits prepayment or repurchase of the Notes pursuant to an Asset Sale
Offer, the Company will either repay, or cause its Williams Group Affiliates to
repay, all such outstanding Indebtedness of the Company and its Williams Group
Affiliates (and terminate all commitments to extend such Indebtedness), or
obtain the requisite consents, if any, under all agreements governing such
Indebtedness or

                                       56

<PAGE>

commitments to permit the repurchase of Notes required by this Section 3.12. The
Company shall first comply with this paragraph (e) before it shall be required
to make an Asset Sale Offer or to repurchase Notes pursuant to this Section. The
Company's failure to comply with the covenant described in this paragraph may
(with notice and lapse of time) constitute an Event of Default under 5.01(a)(iv)
but shall not constitute an Event of Default under Section 5.01(a)(iii).

         SECTION 3.13.  Limitation on Transactions with Affiliates. (a) The
Company will not, and will not permit any of its Restricted Subsidiaries to,
make any payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into
or make or amend any transaction, contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate (each, an
"AFFILIATE TRANSACTION"), unless:

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

                  (ii)     the Company delivers to the Trustee:

                           (A)      with respect to any Affiliate Transaction or
                  series of related Affiliate Transactions involving aggregate
                  consideration in excess of $10 million, a resolution of the
                  Board of Directors of the Company set forth in an Officers'
                  Certificate certifying that such Affiliate Transaction
                  complies with this Section 3.13 and that such Affiliate
                  Transaction has been approved by a majority of the
                  disinterested members of the Board of Directors of the
                  Company; and

                           (B)      with respect to any Affiliate Transaction or
                  series of related Affiliate Transactions involving aggregate
                  consideration in excess of $25 million, an opinion as to the
                  fairness to the Company of such Affiliate Transaction from a
                  financial point of view issued by an accounting, appraisal or
                  investment banking firm of national standing.

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

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

                                       57

<PAGE>

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

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

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

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

                  (vi)     (A) corporate sharing agreements with the Company's
         Williams Group Affiliates and their subsidiaries with respect to tax
         sharing and general overhead and other administrative matters and (B)
         any other intercompany arrangements disclosed or described in the
         Company's report on Form 10-K for the fiscal year ended December 31,
         2001 (including the exhibits thereto) or the Offering Memorandum, all
         as in effect on the date of the Indenture, and any amendment or
         replacement of any of the foregoing so long as such amendment or
         replacement agreement is not less advantageous to the Company in any
         material respect than the agreement so amended or replaced, as such
         agreement was in effect on the date of the Indenture;

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

                  (viii)   Restricted Payments that are permitted by the
         provisions of Section 3.05.

         SECTION 3.14.  Designation of Restricted and Unrestricted Subsidiaries.
The Board of Directors of the Company may designate any Restricted Subsidiary to
be an Unrestricted Subsidiary if that designation would not cause a Default;
provided that in no event will the businesses operated by the Company on the
date of this Indenture be transferred to or held by an Unrestricted Subsidiary.
If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the
aggregate fair market value of all outstanding Investments owned by the Company
and its Restricted Subsidiaries in the Subsidiary properly designated will be
deemed to be an Investment made as of the time of the designation and will
reduce the amount available for Restricted Payments under Section 3.05(a) or
Permitted Investments, as determined by the Company. That designation will only
be permitted if the

                                       58

<PAGE>

Investment would be permitted at that time and if the Restricted Subsidiary
otherwise meets the definition of an Unrestricted Subsidiary. The Board of
Directors of the Company may redesignate any Unrestricted Subsidiary to be a
Restricted Subsidiary if the redesignation would not cause a Default.

         SECTION 3.15.  Limitation on Sale and Leaseback Transactions. The
Company will not, and will not permit any of its Restricted Subsidiaries to,
enter into any Sale and Leaseback Transaction; provided that the Company or any
Guarantor may enter into a Sale and Leaseback Transaction if:

                  (i)      the Company or that Guarantor, as applicable, could
         have incurred Indebtedness in an amount equal to the Attributable Debt
         relating to such Sale and Leaseback Transaction under the Fixed Charge
         Coverage Ratio test in Section 3.06(a);

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

                  (iii)    the gross cash proceeds of that Sale and Leaseback
         Transaction are at least equal to the fair market value, as determined
         in good faith by the Board of Directors of the Company and set forth in
         an Officers' Certificate delivered to the Trustee, of the property that
         is the subject of that Sale and Leaseback Transaction; provided,
         however, that the foregoing clauses (i) and (ii) shall no longer be
         applicable after any Investment Grade Date.

         SECTION 3.16.  Business Activities. The Company will not, and will not
permit any Restricted Subsidiary to, engage in any business other than Permitted
Businesses, except to such extent as would not be material to the Company and
its Subsidiaries taken as a whole.

         SECTION 3.17.  Payments for Consent. The Company will not, and will not
permit any of its Subsidiaries to, directly or indirectly, pay or cause to be
paid any consideration to or for the benefit of any Holder of Notes for or as an
inducement to any consent, waiver or amendment of any of the terms or provisions
of the Indenture or the Notes unless such consideration is offered to be paid
and is paid to all Holders of the Notes that consent, waive or agree to amend in
the time frame set forth in the solicitation documents relating to such consent,
waiver or agreement.

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                                    ARTICLE 4

                         CONSOLIDATION, MERGER AND SALE

         SECTION 4.1.   Limitation on Mergers and Consolidations. (a) The
Company may not, directly or indirectly: (1) consolidate or merge with or into
another Person (whether or not the Company is the surviving Person); or (2)
sell, assign, transfer, convey or otherwise dispose of all or substantially all
of the properties or assets of the Company and its Restricted Subsidiaries taken
as a whole, in one or more related transactions, to another Person unless:

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

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

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

                  (iv)     the Company or the Person formed by or surviving any
         such consolidation or merger (if other than the Company), or to which
         such sale, assignment, transfer, conveyance or other disposition has
         been made will, on the date of such transaction after giving pro forma
         effect thereto and any related financing transactions as if the same
         had occurred at the beginning of the applicable four-quarter period, be
         permitted to incur at least $1.00 of additional Indebtedness pursuant
         to the Fixed Charge Coverage Ratio test set forth in Section 3.06(a);
         provided, however, that this clause (iv) shall no longer be applicable
         from and after any Investment Grade Date.

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         (b)      In addition, the Company may not, directly or indirectly,
lease all or substantially all of its properties or assets, in one or more
related transactions, to any other Person. Clause (iv) under paragraph (a) of
this Section will not apply to a sale, assignment, transfer, conveyance or other
disposition of assets between or among the Company and any of its Restricted
Subsidiaries. Without limitation of the foregoing, in no event shall the
Company, directly or indirectly, (1) consolidate or merge with or into Williams
or any of the Williams Group Affiliates (whether or not the Company is the
surviving Person) or (2) sell, assign, transfer, convey or otherwise dispose of
all or substantially all of the properties or assets of the Company and its
Restricted Subsidiaries taken as a whole, in one or more related transactions,
to Williams or any of the Williams Group Affiliates (other than mergers or
transactions otherwise permitted by this Section 4.01 with (a) Williams Group
Affiliates engaged in no businesses other than being principally engaged in
owning and operating regulated interstate natural gas pipeline systems and any
businesses incidental and reasonably related thereto, including facilities for
mainline transmission and gas storage ("PIPELINE BUSINESS") or (b) a holding
company of the Company engaged in no businesses other than Pipeline Business and
having no Subsidiaries other than Subsidiaries engaged in no businesses other
than Pipeline Business, and in the case of (a) or (b), only if at the time of
such merger or transaction, the Company and such Williams Group Affiliate or
holding company each have an Investment Grade Rating from Moody's and S&P and
the surviving Person will have an Investment Grade Rating from Moody's and S&P).

         SECTION 4.2.   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 Notes 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 the Indenture prescribed, the Trustee shall authenticate and
shall deliver any Notes which previously shall have been signed and delivered by
the officers of the Company to the Trustee for authentication, and any Notes
which such successor Person thereafter shall cause to be signed and delivered to
the Trustee for that purpose. All of the Notes so issued shall in all respects
have the same legal rank and benefit under the Indenture as the Notes
theretofore or thereafter issued in accordance with the terms of the Indenture
as though all of such Notes 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
Notes

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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 the Indenture, and the Notes and may be liquidated and dissolved.

         SECTION 4.3.   Consolidation, Merger or Sale of Assets by a Guarantor.
(a) No Guarantor may:

                  (i)      consolidate with or merge with or into any Person, or

                  (ii)     sell, convey, transfer or dispose of, all or
         substantially all its assets as an entirety or substantially as an
         entirety, in one transaction or a series of related transactions, to
         any Person, or

                  (iii)    permit any Person to merge with or into the Guarantor
         unless

                           (A)      immediately after giving effect to the
                  transaction, no Default or Event of Default exists; and

                           (B)      either:

         (b)      (i) the Person acquiring the property in any such sale or
disposition or the Person formed by or surviving any such consolidation or
merger (if other than such Guarantor) assumes all the obligations of that
Guarantor under the Indenture, its Subsidiary Guarantee and any Registration
Rights Agreement pursuant to a Supplemental Indenture satisfactory to the
Trustee; or

                  (ii)     in connection with any sale or other disposition of
         all or substantially all of the assets of the Guarantor (including by
         way of merger or consolidation) to a Person that is not (either before
         or after giving effect to such transaction) a Subsidiary of the
         Company, if the sale or other disposition complies with Section 3.12.

                                    ARTICLE 5

                              DEFAULTS AND REMEDIES

         SECTION 5.1.   Events of Default.  (a) Each of the following is an
Event of Default:

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                  (i)      default for 30 days in the payment when due of
         interest on, or Liquidated Damages with respect to, the Notes;

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

                  (iii)    failure by the Company to purchase Notes tendered
         pursuant to an offer described under Sections 3.11 and 3.12 in
         accordance with the terms thereof, or failure of the Company or any
         Guarantor to comply with the provisions of Article IV;

                  (iv)     failure by the Company or any of its Restricted
         Subsidiaries for 60 days after notice, from the Trustee or the Holders
         of at least 25% of the outstanding principal amount of the Notes, to
         comply with any of the other agreements in the Indenture;

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

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

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

         and, in each case, the principal amount of any such Indebtedness,
         together with the principal amount of any other such Indebtedness under
         which there has been a Payment Default or the maturity of which has
         been so accelerated, aggregates $15 million or more;

                  (vi)     failure by the Company or any of its Subsidiaries to
         pay final judgments aggregating in excess of $15 million, which
         judgments are not paid, discharged or stayed for a period of 60 days;

                  (vii)    except as permitted by the Indenture, any Subsidiary
         Guarantee shall be held in any judicial proceeding to be unenforceable
         or invalid or shall cease for any reason to be in full force and effect
         or any

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         Guarantor, or any Person acting on behalf of any Guarantor, shall deny
         or disaffirm its obligations under its Subsidiary Guarantee; and

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

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

         (b)      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

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Event of Default with specific reference to such Default or Event of Default and
the Notes and this Indenture.

         (c)      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 5.2.   Acceleration. If an Event of Default (other than an
Event of Default specified in clause (viii) or (ix) of Section 5.01(a) hereof
with respect to the Company, any Subsidiary that is a Significant Subsidiary or
any group of Subsidiaries that, taken together, would constitute a Significant
Subsidiary) occurs and is continuing, the Trustee by notice to the Company, or
the Holders of at least 25% in principal amount of the then outstanding Notes by
notice to the Company and the Trustee, may declare the principal of and premium,
if any, and accrued and unpaid interest and Liquidated Damages, if any, on all
then outstanding Notes to be due and payable immediately. Upon any such
declaration the amounts due and payable on the Notes, as determined in
accordance with the next succeeding paragraph, shall be due and payable
immediately. If an Event of Default specified in clause (viii) or (ix) of
Section 5.01(a) with respect to the Company, any Subsidiary that is a
Significant Subsidiary or any group of Subsidiaries that, taken together, would
constitute a Significant Subsidiary, occurs, the principal of and premium, if
any, and accrued and unpaid interest and Liquidated Damages, if any, on all
Notes then outstanding shall ipso facto become and be immediately due and
payable without any declaration, notice or other act on the part of the Trustee
or any Holder.

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

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

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

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

         If the maturity of the Notes is accelerated pursuant to this Section
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.

         In the case of any Event of Default occurring by reason of any willful
action or inaction taken or not taken by or on behalf of the Company with the
intention of avoiding payment of the premium (including, in the case of any such
Event of Default prior to March 1, 2007, payment of the Make-Whole Price) that
the Company would have had to pay if the Company then had elected to redeem the
Notes pursuant to the optional redemption provisions of the Indenture, an
equivalent premium (or, in the case of any such Event of Default prior to March
1, 2007, the relevant Make-Whole Amount that would apply at such time if the
Notes were optionally redeemed at the Make-Whole Price) will also become and be
immediately due and payable to the extent permitted by law upon the acceleration
of the Notes.

         SECTION 5.3.   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 Notes or to enforce the performance of any provision of the Notes, the
Indenture or any Registration Rights Agreement.

         The Trustee may maintain a proceeding even if it does not possess any
of the Notes 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 5.4.   Waiver of Existing Defaults. Subject to Sections 5.07
and 8.02 hereof, the Holders of a majority in aggregate principal amount of the
outstanding Notes by notice to the Trustee may waive an existing Default or
Event of Default and its consequences (including waivers obtained in connection
with a purchase of, or tender offer or exchange offer for, the Notes or a
solicitation of consents in respect of the Notes), except (1) a continuing
Default or Event of Default in the payment of interest or Liquidated Damages on,
or the principal of, the Notes 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 the

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<PAGE>

Indenture; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.

         SECTION 5.5.   Control by Majority. The Holders of a majority in
principal amount of the Notes 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 the
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 5.6.   Limitations on Suits. Subject to Section 5.07 hereof, a
Holder may pursue a remedy with respect to the Indenture or the Notes only if:

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

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

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

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

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

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

         SECTION 5.7.   Rights of Holders to Receive Payment. Notwithstanding
any other provision of the Indenture, the right of any Holder of a Note to
receive payment of principal of, and premium, if any, and interest on the Note,
on or after the respective due dates expressed in the Note, or to bring suit for
the enforcement of any such payment on or after such respective dates, is
absolute and

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<PAGE>

unconditional and shall not be impaired or affected without the consent of such
Holder.

         SECTION 5.8.   Collection Suit by Trustee. If an Event of Default
specified in clause (i) or (ii) 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
Notes, 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 5.9.   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 Notes 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:

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<PAGE>

         First: to the Trustee (including any Predecessor Trustee) for amounts
due under Section 6.07 hereof;

         Second: to Holders for amounts due and unpaid on the Notes 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 Notes 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 the 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 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 Notes
then outstanding.

                                    ARTICLE 6

                                     TRUSTEE

         SECTION 6.1.   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 the 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:

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

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<PAGE>

                  (ii)     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
         the 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 the 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:

                  (i)      this paragraph does not limit the effect of
         paragraphs (b) or (e) of this Section;

                  (ii)     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

                  (iii)    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 the Indenture that in any way relates to the Trustee is subject to paragraphs
(a), (b), (c) and (e) of this Section.

         (e)      No provision of the 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 Notes.

         SECTION 6.2.   Rights of Trustee. (a) The Trustee may rely conclusively
and shall be fully protected in acting or refraining from acting 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.

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<PAGE>

         (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 the Indenture.

         (e)      Unless otherwise specifically provided in the 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 the
Indenture.

         (g)      The Trustee's immunities and protections from liability and
its right to indemnification in connection with the performance of its duties
under the 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 the Indenture and final
payment of the Notes.

         (h)      The permissive right of the Trustee to take the actions
permitted by the 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
Notes, and the Trustee shall have no responsibility for compliance with any
state or federal securities laws in connection with the Notes.

         (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 the Indenture,
which Officers' Certificate may be signed by any person authorized to sign an
Officers' Certificate,

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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 the Indenture at the request or direction
of any of the Holders pursuant to the 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.

         (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 6.3.   Individual Rights of Trustee. The Trustee in its
individual or any other capacity may become the owner or pledgee of Notes 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 6.4.   Trustee's Disclaimer. The Trustee makes no
representation as to the validity or adequacy of the Indenture or the Notes, it
shall not be accountable for the Company's use of the proceeds from the Notes 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 Notes
other than its certificate of authentication.

         SECTION 6.5.   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 Note, 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 6.6.   Reports by Trustee to Holders. On or before May 15 of
each year, beginning with May 15, 2004, 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

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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 Commission and each securities exchange, if any, on which the
Notes are listed. The Company shall notify the Trustee if and when the Notes are
listed on any stock exchange or delisted therefrom.

         SECTION 6.7.   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 the 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 the Indenture, including the costs and expenses of defending itself
against any claim (whether asserted aby 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 willful misconduct.

         To secure the payment obligations of the Company in this Section 6.07,
the Trustee shall have a lien prior to the Notes 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 particular
Notes. Such lien shall survive the satisfaction and discharge of the Indenture,
the resignation or removal of the Trustee and the termination of this Indenture
for any reason.

         Without prejudice to its rights hereunder, when the Trustee incurs
expenses or renders services after an Event of Default specified in Section
5.01(a)(viii) or

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(ix) hereof occurs, the expenses and the compensation for the services are
intended to constitute expenses of administration under any Bankruptcy Law.

         SECTION 6.8.   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 Notes may remove the Trustee by so notifying the Trustee
and the Company. The Company may remove the Trustee if:

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

                  (ii)     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;

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

                  (iv)     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 Notes 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 Notes 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 the 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,

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subject to the lien provided for in 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 6.9.   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 Person, the
successor Person without any further act shall be the successor Trustee.

         In case any Notes 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
Notes so authenticated; and in case at that time any of the Notes shall not have
been authenticated, any successor to the Trustee may authenticate such Notes
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 Notes or in the 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 the Indenture. For purposes of Section 301(b)(1) of
the TIA and to the extent permitted thereby, the Trustee shall not be deemed to
have a conflicting interest arising from its capacity as trustee in respect of
any series of securities issued under the Indentures dated as of August 1, 1992,
November 30, 1995 and December 8, 1997, each by and between the Company and
JPMorgan Chase Bank (or its predecessor), as trustee, and any other indentures
of the Company pursuant to which JPMorgan Chase Bank acts as trustee. Nothing in
the 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),

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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 7

                            DEFEASANCE AND DISCHARGE

         SECTION 7.1.   Discharge of Company's Obligations. (a) Subject to
paragraph (b), the Company's obligations under the Notes and the Indenture, and
each Guarantor's obligations under its Subsidiary Guarantee, will terminate if:

                  (i)      either

                           (A)      all Notes that have been authenticated,
                  except lost, stolen or destroyed Notes that have been replaced
                  or paid and Notes for whose payment money has been deposited
                  in trust and thereafter repaid to the Company, have been
                  delivered to the Trustee for cancellation; or

                           (B)      all Notes that have not been delivered to
                  the Trustee for cancellation have become due and payable by
                  reason of the mailing of a notice of redemption or otherwise
                  or will become due and payable within one year and the Company
                  or any Guarantor has irrevocably deposited or caused to be
                  deposited with the Trustee as trust funds in trust solely for
                  the benefit of the Holders, cash in U.S. dollars, non-callable
                  Government Securities, or a combination of cash in U.S.
                  dollars and noncallable Government Securities, in amounts as
                  will be sufficient without consideration of any reinvestment
                  of interest, to pay and discharge the entire indebtedness on
                  the Notes not delivered to the trustee for cancellation for
                  principal, premium and Liquidated Damages, if any, and accrued
                  interest to the date of maturity or redemption;

                  (ii)     the Company or any Guarantor has paid or caused to be
         paid all sums payable by it under the Indenture; and

                  (iii)    the Company has delivered irrevocable instructions to
         the Trustee under the Indenture to apply the deposited money toward the
         payment of the Notes at the Maturity Date or the Redemption Date, as
         the case may; and

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

         (b)      After satisfying the conditions in clauses
(a)(i)(A),(ii),(iii) and (iv), only the Company's obligations under Section 6.07
will survive. After satisfying the conditions in clauses (a)(i)(B), (ii), (iii)
and (iv), only the Company's obligations in Article II and Sections 3.01, 3.02,
6.07, 6.08, 7.05 and 7.06 will survive. In either case, the Trustee upon request
will acknowledge in writing the discharge of the Company's obligations under the
Notes and the Indenture other than the surviving obligations.

         SECTION 7.2.   Legal Defeasance. (a) After the 91st day following the
deposit referred to in clause (i), the Company will be deemed to have paid and
will be discharged from its obligations in respect of the Notes and the
Indenture, other than its obligations in Article II and Sections 3.01, 3.02,
6.07, 6.08, 7.05 and 7.06, and each Guarantor's obligations under its Subsidiary
Guarantee will terminate ("LEGAL DEFEASANCE"), provided the following conditions
have been satisfied:

                  (i)      the Company must irrevocably deposit with the
         Trustee, in trust, for the benefit of the Holders of the Notes, cash in
         U.S. dollars, non-callable Government Securities, or a combination of
         cash in U.S. dollars and non-callable Government Securities, in amounts
         as will be sufficient, in the opinion of a nationally recognized firm
         of independent public accountants, to pay the principal of, or interest
         and premium and Liquidated Damages, if any, on the outstanding Notes on
         the Stated Maturity or on the applicable Redemption Date, as the case
         may be, and the Company must specify whether the Notes are being
         defeased to Maturity Date or to a particular Redemption Date;

                  (ii)     the Company has delivered to the Trustee an Opinion
         of Counsel reasonably acceptable to the Trustee confirming that (a) the
         Company has received from, or there has been published by, the Internal
         Revenue Service a ruling or (b) since the date of the Indenture, there
         has been a change in the applicable federal income tax law, in either
         case to the effect that, and based thereon such Opinion of Counsel will
         confirm that, the Holders of the outstanding Notes will not recognize
         income, gain or loss for federal income tax purposes as a result of
         such Legal Defeasance and will be subject to federal income tax on the
         same amounts, in the same manner and at the same times as would have
         been the case if such Legal Defeasance had not occurred;

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                  (iii)    no Default or Event of Default has occurred and is
         continuing on the date of such deposit (other than a Default or Event
         of Default resulting from the borrowing of funds to be applied to such
         deposit);

                  (iv)     such Legal Defeasance will not result in a breach or
         violation of, or constitute a default under any material agreement or
         instrument (other than the Indenture) to which the Company or any of
         its Subsidiaries is a party or by which the Company or any of its
         Subsidiaries is bound;

                  (v)      the Company must deliver to the Trustee an Officers'
         Certificate stating that the deposit was not made by the Company with
         the intent of preferring the Holders of Notes over the other creditors
         of the Company with the intent of defeating, hindering, delaying or
         defrauding creditors of the Company or others; and

                  (vi)     the Company must deliver to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent relating to the Legal Defeasance have been complied with.

         Prior to the end of the 91-day period, none of the Company's
obligations under the Indenture will be discharged. Thereafter, the Trustee upon
request will acknowledge in writing the discharge of the Company's obligations
under the Notes and the Indenture except for the surviving obligations specified
above.

         SECTION 7.3.   Covenant Defeasance. (a) After the 91st day following
the deposit referred to in clause (i), the Company's obligations set forth in
Sections 3.03 through 3.17, inclusive and clause (iv) of Section 4.01(a), and
each Guarantor's obligations under its Subsidiary Guarantee, will terminate, and
clauses (iii), (iv), (v), (vi) and (vii) of Section 5.01(a) will no longer
constitute Events of Default ("COVENANT DEFEASANCE"), provided the following
conditions have been satisfied:

                  (i)      the Company must irrevocably deposit with the
         Trustee, in trust, for the benefit of the Holders of the Notes, cash in
         U.S. dollars, non-callable Government Securities, or a combination of
         cash in U.S. dollars and non-callable Government Securities, in amounts
         as will be sufficient, in the opinion of a nationally recognized firm
         of independent public accountants, to pay the principal of, or interest
         and premium and Liquidated Damages, if any, on the outstanding Notes on
         the Stated Maturity or on the applicable Redemption Date, as the case
         may be, and the Company must specify whether the Notes are being
         defeased to Maturity Date or to a particular Redemption Date;

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                  (ii)     the Company has delivered to the Trustee an Opinion
         of Counsel reasonably acceptable to the Trustee confirming that the
         Holders of the outstanding Notes will not recognize income, gain or
         loss for federal income tax purposes as a result of such Covenant
         Defeasance and will be subject to federal income tax on the same
         amounts, in the same manner and at the same times as would have been
         the case if such Covenant Defeasance had not occurred;

                  (iii)    no Default or Event of Default has occurred and is
         continuing on the date of such deposit (other than a Default or Event
         of Default resulting from the borrowing of funds to be applied to such
         deposit);

                  (iv)     such Covenant Defeasance will not result in a breach
         or violation of, or constitute a default under any material agreement
         or instrument (other than the Indenture) to which the Company or any of
         its Subsidiaries is a party or by which the Company or any of its
         Subsidiaries is bound;

                  (v)      the Company must deliver to the Trustee an Officers'
         Certificate stating that the deposit was not made by the Company with
         the intent of preferring the Holders of Notes over the other creditors
         of the Company with the intent of defeating, hindering, delaying or
         defrauding creditors of the Company or others; and

                  (vi)     the Company must deliver to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent relating to the Legal Defeasance have been complied with.

         Except as specifically stated above, none of the Company's obligations
under the Indenture will be discharged.

         SECTION 7.4.   Covenant Termination. From and after the first date
after the date of the Indenture on which the Notes have an Investment Grade
Rating from both Rating Agencies and no Default or Event of Default has occurred
and is continuing under the Indenture (the "INVESTMENT GRADE DATE"), the Company
and its Restricted Subsidiaries will no longer be subject to Sections 3.05,
3.06, 3.08, 3.09, 3.12, 3.13 and 3.16 of the Indenture.

         SECTION 7.5.   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, 7.02 and 7.03
hereof. It shall apply the deposited money and the money from U.S. Government
Obligations through the Paying Agent and in accordance with the Indenture to the

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payment of principal of, premium, if any, Liquidated Damages, if any, and
interest on the Notes.

         SECTION 7.6.   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.

         In the absence of a written request from the Company to return
unclaimed funds to the Company, the Trustee shall from time to time deliver all
unclaimed funds to or as directed by applicable escheat authorities, as
determined by the Trustee in its sole discretion, in accordance with customary
practices and procedures of the Trustee. Any unclaimed funds held by the Trustee
pursuant to this Section 7.06 shall be held uninvested and without any liability
for interest.

         SECTION 7.7.   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, 7.02 or 7.03 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 the Indenture and the Notes shall be revived and reinstated as
though no deposit had occurred pursuant to Section 7.01, 7.02 or 7.03 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, 7.02
or 7.03 hereof; provided, however, that if the Company has made any payment of
principal of or interest on any Notes because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money or U.S. Government Obligations
held by the Trustee or the Paying Agent.

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                                    ARTICLE 8

                                   AMENDMENTS

         SECTION 8.1.   Without Consent of Holders. The Company, the Guarantors
and the Trustee may amend or supplement the Indenture or any of the Notes or
waive any provision hereof or thereof without the consent of any Holder:

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

                  (ii)     to provide for uncertificated Notes in addition to or
         in place of certificated Notes;

                  (iii)    to provide for the assumption of the Company's
         obligations to Holders of Notes in the case of a merger or
         consolidation or sale of all or substantially all of the Company's
         assets;

                  (iv)     to provide for any Guarantee of the Notes, to secure
         the Notes or to confirm and evidence the release, termination or
         discharge of any Guarantee of or Lien securing the Notes when such
         release, termination or discharge is permitted by the Indenture;

                  (v)      to make any change that would provide any additional
         rights or benefits to the Holders of Notes or that does not adversely
         affect the legal rights under the Indenture of any such Holder; or to
         provide for the acceptance of appointment hereunder of a successor
         Trustee in compliance with the provisions hereof;

                  (vi)     to comply with requirements of the Commission under
         the Securities Act or the Exchange Act or in order to effect or
         maintain the qualification of the Indenture under the Trust Indenture
         Act.

         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 and subject to the other terms of Section 8.06 hereof, the Trustee
shall join with the Company in the execution of any Supplemental Indenture
authorized or permitted by the terms of the 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 Note 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.

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         SECTION 8.2.   With Consent of Holders.

         Except as provided below in this Section 8.02, the Company and the
Trustee may amend or supplement the Indenture or the Notes with the written
consent (including consents obtained in connection with a purchase of, or tender
offer or exchange offer for, the Notes or a solicitation of consents in respect
of the Notes) of the Holders of at least a majority in principal amount of the
Notes 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 Notes then
outstanding may waive compliance in a particular instance by the Company with
any provision of the Indenture or the Notes (including waivers obtained in
connection with a purchase of, tender offer or exchange offer for, the Notes or
a solicitation of consents in respect of the Notes).

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

                  (i)      reduce the principal amount of Notes whose Holders
         must consent to an amendment, supplement or waiver;

                  (ii)     reduce the principal of or change the fixed maturity
         of any Note or alter the provisions (including without limitation the
         amount of any premium or the price therefor) with respect to the
         redemption of the Notes (other than provisions relating to Sections
         3.11 and 3.12);

                  (iii)    reduce the rate of or change the time for payment of
         interest or Liquidated Damages on any Note;

                  (iv)     waive a Default or Event of Default in the payment of
         principal of, or interest or premium, or Liquidated Damages, if any, on
         the Notes (except a rescission of acceleration of the Notes by the
         Holders of at least a majority in aggregate principal amount of the
         Notes and a waiver of the payment default that resulted from such
         acceleration);

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                  (v)      make any Note payable in money other than that stated
         in the Notes;

                  (vi)     make any change in the provisions of the Indenture
         relating to waivers of past Defaults or the rights of Holders of Notes
         to receive payments of principal of, or interest or premium or
         Liquidated Damages, if any, on the Notes;

                  (vii)    waive a redemption payment with respect to any Note
         (other than a payment required by Sections 3.11 or 3.12);

                  (viii)   release any Guarantor from any of its obligations
         under its Subsidiary Guarantee or the Indenture, except in accordance
         with the terms of the Indenture; or

                  (ix)     make any change in the preceding amendment and waiver
         provisions.

         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 the Notes 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.

         SECTION 8.3.   Compliance with Trust Indenture Act. Every amendment to
the Indenture or the Notes shall comply in form and substance with the TIA as
then in effect.

         SECTION 8.4.   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 Note or portion of a Note
that evidences the same debt as the consenting Holder's Note, even if notation
of the consent is not made on any Note. However, any such Holder or subsequent
Holder may revoke the consent as to his or her Note or portion of a Note 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 Notes 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.

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         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 the 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 Notes 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 (i)
through (ix) 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 Note.

         SECTION 8.5.   Notation on or Exchange of Notes. If an amendment
changes the terms of a Note, the Trustee may require the Holder of the Note to
deliver it to the Trustee. The Trustee may place an appropriate notation on the
Note 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 Note
shall issue and the Trustee shall authenticate a new Note that reflects the
changed terms. Failure to make the appropriate notation or to issue a new Note
shall not affect the validity of such amendment.

         SECTION 8.6.   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 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
the Indenture, that it is not inconsistent herewith, and that it will be valid
and binding upon the Company in accordance with its terms.

                                    ARTICLE 9

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<PAGE>

                                   REDEMPTION

         SECTION 9.1.   Notices to Trustee. If the Company elects to redeem
Notes 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 Notes to be redeemed and the
Redemption Price.

         SECTION 9.2.   Selection of Notes to Be Redeemed. (a) If less than all
of the Notes are to be redeemed at any time, the Trustee will select Notes for
redemption as follows:

                  (i)      if the Notes are listed on any national securities
         exchange, in compliance with the requirements of the principal national
         securities exchange on which the Notes are listed; or

                  (ii)     if the Notes are not listed on any national
         securities exchange, on a pro rata basis, by lot or by such method as
         the Trustee deems fair and appropriate.

         The particular Notes 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 Notes not previously called
for redemption.

         The Trustee shall promptly notify the Company in writing of the Notes
selected for redemption and, in the case of any Note selected for partial
redemption, the principal amount thereof to be redeemed. Notes 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 the Indenture that apply to
Notes called for redemption also apply to portions of Notes called for
redemption.

         SECTION 9.3.   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 11.02 a notice of redemption to each Holder whose Notes are to be
redeemed, except that redemption notices may be mailed more than 60 days prior
to a redemption date if the notice is issued in connection with a defeasance of
the Notes or a satisfaction and discharge of the Indenture. Notices of
redemption may not be conditional.

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

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<PAGE>

                  (i)      the Redemption Date;

                  (ii)     the Redemption Price;

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

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

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

                  (vi)     that unless the Company defaults in making the
         redemption payment, interest on Notes 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 Notes; and

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

         If any of the Notes to be redeemed is in the form of a Global Note,
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 9.4.   Effect of Notices of Redemption. Once notice of
redemption is mailed pursuant to Section 9.03, Notes called for redemption
become due and payable on the Redemption Date at the Redemption Price. Upon
surrender to the Paying Agent, such Notes shall be paid out at the Redemption
Price.

         SECTION 9.5.   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 Notes to be redeemed on that date. The Trustee or the Paying Agent shall

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<PAGE>

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
Notes or portions thereof to be redeemed (whether or not such Notes are
presented for payment) will cease to accrue on the applicable Redemption Date.
If any Note 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 Notes and in Section 3.01.

         SECTION 9.6.   Notes Redeemed in Part. Upon surrender of a Note 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 Note equal in principal amount
to the unredeemed portion of the Note surrendered.

         SECTION 9.7.   Optional Redemption. (a) At any time and from time to
time prior to March 1, 2007, the Company may, at its option, redeem all or a
portion of the Notes at the Make-Whole Price plus accrued and unpaid interest to
the redemption date.

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

<TABLE>
<CAPTION>
TWELVE-MONTH PERIOD
    COMMENCING
  MARCH 1 IN YEAR                           PERCENTAGE
<S>                                         <C>
2007                                         104.063%
2008                                         102.031%
2009 and thereafter                          100.000%
</TABLE>

         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.

         SECTION 9.8.   Redemption with Proceeds of Public Equity Offering. (a)
At any time and from time to time prior to March 1, 2006, the Company may, at
its option, redeem up to 35% of the aggregate principal amount of the Notes with
the net cash proceeds received by the Company from any Public Equity Offering

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<PAGE>

(excluding any net cash proceeds received from Williams or any of its
Affiliates) at a redemption price equal to 108.125% of the principal amount plus
accrued and unpaid interest and liquidated damages, if any, to the redemption
date, provided that

                  (i)      in each case the redemption takes place not later
         than 90 days after the closing of the related Public Equity Offering,
         and

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

         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.

         SECTION 9.9.   Change of Control Offer. (a) A "CHANGE OF CONTROL OFFER"
means an offer by the Company to purchase Notes as required by Section 3.11. A
Change of Control Offer must be made by written offer (the "OFFER") sent to the
Holders. The Company will notify the Trustee at least three Business Days (or
such shorter period as is acceptable to the Trustee) prior to sending the offer
to Holders of its obligation to make a Change of Control Offer, and the offer
will be sent by the Company or, at the Company's request, by the Trustee in the
name and at the expense of the Company.

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

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

                  (ii)     the aggregate principal amount of the outstanding
         Notes offered to be purchased by the Company pursuant to the Change of
         Control Offer (the "PURCHASE AMOUNT");

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

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

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

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<PAGE>

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

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

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

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

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

                  (xi)     Holders are entitled to withdraw Notes tendered by
         giving notice, which must be received by the Company or the Trustee not
         later than the close of business on the Change of Control Payment Date,
         setting forth the name of the Holder, the principal amount of the
         tendered Notes, the certificate number of the tendered Notes and a
         statement that the Holder is withdrawing all or a portion of the
         tender;

                  (xii)    if Notes in an aggregate principal amount less than
         or equal to the Purchase Amount are duly tendered and not withdrawn
         pursuant to the Change of Control Offer, the Company will purchase all
         such Notes;

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

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

         (c)      Prior to the Change of Control Payment Date, the Company will
accept tendered Notes for purchase as required by the Change of Control Offer
and deliver to the Trustee all Notes so accepted together with an Officers'

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<PAGE>

Certificate specifying which Notes have been accepted for purchase. On the
Change of Control Payment Date the purchase price will become due and payable on
each Note accepted for purchase, and interest on Notes purchased will cease to
accrue on and after the Change of Control Payment Date. The Paying Agent will
promptly mail to each Holder of Notes properly tendered the Change of Control
Payment for such Notes, and the Trustee will promptly return to Holders any
Notes not accepted for purchase and send to Holders new Notes equal in principal
amount to any unpurchased portion of any Notes accepted for purchase in part,
provided that each new Note will be in a principal amount of $1,000 or an
integral multiple of $1,000.

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

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

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

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

         (e)      The Company will comply with Rule 14e-1 under the Exchange Act
and all other applicable laws in making any Change of Control Offer, and the
above procedures will be deemed modified as necessary to permit such compliance.

                                   ARTICLE 10

                                   GUARANTIES

         SECTION 10.1.  The Guaranties. Subject to the provisions of this
Article, each Guarantor hereby irrevocably and unconditionally guarantees,
jointly and severally, on an unsecured basis, the full and punctual payment
(whether at Stated Maturity, upon redemption, purchase pursuant to an Change of
Control Offer or acceleration, or otherwise) of the principal of, premium, if
any, and interest on, and all other amounts payable under, each Note, and the
full and punctual payment of all other amounts payable by the Company under the
Indenture. Upon failure by

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<PAGE>

the Company to pay punctually any such amount, each Guarantor shall forthwith on
demand pay the amount not so paid at the place and in the manner specified in
the Indenture.

         SECTION 10.2.  Guarantee Unconditional. The obligations of each
Guarantor hereunder are unconditional and absolute and, without limiting the
generality of the foregoing, will not be released, discharged or otherwise
affected by

                  (i)      any extension, renewal, settlement, compromise,
         waiver or release in respect of any obligation of the Company under the
         Indenture or any Note, by operation of law or otherwise;

                  (ii)     any modification or amendment of or supplement to the
         Indenture or any Note;

                  (iii)    any change in the corporate existence, structure or
         ownership of the Company, or any insolvency, bankruptcy, reorganization
         or other similar proceeding affecting the Company or its assets or any
         resulting release or discharge of any obligation of the Company
         contained in the Indenture or any Note;

                  (iv)     the existence of any claim, set off or other rights
         which the Guarantor may have at any time against the Company, the
         Trustee or any other Person, whether in connection with the Indenture
         or any unrelated transactions, provided that nothing herein prevents
         the assertion of any such claim by separate suit or compulsory
         counterclaim;

                  (v)      any invalidity or unenforceability relating to or
         against the Company for any reason of the Indenture or any Note, or any
         provision of applicable law or regulation purporting to prohibit the
         payment by the Company of the principal of or interest on any Note or
         any other amount payable by the Company under the Indenture; or

                  (vi)     any other act or omission to act or delay of any kind
         by the Company, the Trustee or any other Person or any other
         circumstance whatsoever which might, but for the provisions of this
         paragraph, constitute a legal or equitable discharge of or defense to
         such Guarantor's obligations hereunder.

         SECTION 10.3.  Discharge; Reinstatement. Each Guarantor's obligations
hereunder will remain in full force and effect until the principal of, premium,
if any, and interest on the Notes and all other amounts payable by the Company
under the Indenture have been paid in full. If at any time any payment of the
principal of,

                                       91

<PAGE>

premium, if any, or interest on any Note or any other amount payable by the
Company under the Indenture is rescinded or must be otherwise restored or
returned upon the insolvency, bankruptcy or reorganization of the Company or
otherwise, each Guarantor's obligations hereunder with respect to such payment
will be reinstated as though such payment had been due but not made at such
time.

         SECTION 10.4.  Waiver by the Guarantors. Each Guarantor irrevocably
waives acceptance hereof, presentment, demand, protest and any notice not
provided for herein, as well as any requirement that at any time any action be
taken by any Person against the Company or any other Person.

         SECTION 10.5.  Subrogation and Contribution. Upon making any payment
with respect to any obligation of the Company under this Article, the Guarantor
making such payment will be subrogated to the rights of the payee against the
Company with respect to such obligation, provided that the Guarantor may not
enforce either any right of subrogation, or any right to receive payment in the
nature of contribution, or otherwise, from any other Guarantor, with respect to
such payment so long as any amount payable by the Company hereunder or under the
Notes remains unpaid.

         SECTION 10.6.  Stay of Acceleration. If acceleration of the time for
payment of any amount payable by the Company under the Indenture or the Notes is
stayed upon the insolvency, bankruptcy or reorganization of the Company, all
such amounts otherwise subject to acceleration under the terms of the Indenture
are nonetheless payable by the Guarantors hereunder forthwith on demand by the
Trustee or the Holders.

         SECTION 10.7.  Limitation on Amount of Guarantee. Notwithstanding
anything to the contrary in this Article, each Guarantor, and by its acceptance
of Notes, each Holder, hereby confirms that it is the intention of all such
parties that the Subsidiary Guarantee of such Guarantor not constitute a
fraudulent conveyance under applicable fraudulent conveyance provisions of the
United States Bankruptcy Code or any comparable provision of state law. To
effectuate that intention, the Trustee, the Holders and the Guarantors hereby
irrevocably agree that the obligations of each Guarantor under its Subsidiary
Guarantee are limited to the maximum amount that would not render the
Guarantor's obligations subject to avoidance under applicable fraudulent
conveyance provisions of the United States Bankruptcy Code or any comparable
provision of state law.

         SECTION 10.8.  Execution and Delivery of Guarantee. The execution by
each Guarantor of the Indenture (or a Supplemental Indenture in the form of
Exhibit B) evidences the Subsidiary Guarantee of such Guarantor, whether or not
the person signing as an officer of the Guarantor still holds that office at the
time of authentication of any Note. The delivery of any Note by the Trustee
after

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<PAGE>

authentication constitutes due delivery of the Subsidiary Guarantee set forth in
the Indenture on behalf of each Guarantor.

         SECTION 10.9.  Release of Guarantee. The Subsidiary Guarantee of a
Guarantor will terminate upon

                  (i)      any sale or other disposition of all or substantially
         all of the assets of that Guarantor (including by way of merger or
         consolidation) to a Person that is not (either before or after giving
         effect to such transaction) a Subsidiary of the Company, if the sale or
         other disposition complies with Section 3.12; or

                  (ii)     the sale or other disposition of all of the Capital
         Stock of a Guarantor to a Person that is not (either before or after
         giving effect to such transaction) a Subsidiary of the Company, if the
         sale or other disposition complies with Section 3.12; or

                  (iii)    the Company designating any Restricted Subsidiary
         that is a Guarantor as an Unrestricted Subsidiary in accordance with
         the applicable provisions of the Indenture; or

                  (iv)     defeasance or discharge of the Notes, as provided in
         Article VII.

         Upon delivery by the Company to the Trustee of an Officers' Certificate
and an Opinion of Counsel to the foregoing effect, the Trustee will execute any
documents reasonably required in order to evidence the release of the Guarantor
from its obligations under its Subsidiary Guarantee.

                                   ARTICLE 11

                                  MISCELLANEOUS

         SECTION 11.1.  Trust Indenture Act Controls. If any provision of the
Indenture limits, qualifies or conflicts with another provision which is
required to be included in the Indenture by the TIA, the required provision
shall control. If the Indenture excludes any provision of the TIA that is
required to be included, such provision shall be deemed included herein.

         SECTION 11.2.  Notices. Any notice or communication by the Company or
the Trustee to the other is duly given if in writing and delivered in person or
mailed

                                       93

<PAGE>

by 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:

Northwest Pipeline Corporation
295 Chipeta Way
Salt Lake City, Utah 84108
Telecopier No.: (801) 584-7862
Attention: Legal Department

If to the Trustee:

JPMorgan Chase Bank
Institutional Trust Services
4 New York Plaza-15th Floor
New York, New York 10004
Telecopier No.: (212) 623-6167
Attention: Joanne Adamis

         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 by registered or
certified mail; 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 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.

                                       94

<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
the 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 11.3.  Communication by Holders with Other Holders. Holders may
communicate pursuant to TIA Section 312(b) with other Holders with respect to
their rights under the Indenture or the Notes. The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA Section 312(c).

         SECTION 11.4.  Certificate and Opinion as to Conditions Precedent. Upon
any request or application by the Company to the Trustee to take any action
under the Indenture, the Company shall furnish to the Trustee:

                  (i)      an Officers' Certificate (which shall include the
         statements set forth in Section 11.05 hereof) stating that, in the
         opinion of the signers, all conditions precedent and covenants, if any,
         provided for in the Indenture relating to the proposed action have been
         complied with; and

                  (ii)     an Opinion of Counsel (which shall include the
         statements set forth in Section 11.05 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 Notes pursuant to the
Original Offering.

         SECTION 11.5.  Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in the Indenture shall include:

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

                  (ii)     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;

                  (iii)    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

                                       95

<PAGE>

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

         SECTION 11.6.  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 11.7.  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.

         SECTION 11.8.  No Recourse Against Others. No director, officer,
employee, incorporator or stockholder of the Company or any Guarantor, as such,
will have any liability for any obligations of the Company or the Guarantors
under the Notes, the Indenture, the Subsidiary Guarantees, or for any claim
based on, in respect of, or by reason of, such obligations or their creation.
Each Holder of Notes by accepting a Note waives and releases all such liability.
The waiver and release are part of the consideration for issuance of the Notes.

         SECTION 11.9.  Governing Law. This Indenture and the Notes shall be
governed by and constructed in accordance with the laws of the State of New York
(including without limitation Section 5-1401 of the New York General Obligations
Law or any successor to such statute).

         SECTION 11.10. 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 the Indenture.

         SECTION 11.11. Successors. All agreements of the Company in the
Indenture and the Notes shall bind its successors. All agreements of the Trustee
in the Indenture shall bind its successors.

         SECTION 11.12. Severability. In case any provision in the Indenture or
in the Notes 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 11.13. Counterpart Originals. The parties may sign any number
of copies of the Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement.

         SECTION 11.14. Table of Contents, Headings, Etc. The Table of Contents,
Cross-Reference Table and Headings of the Articles and Sections of the

                                       96

<PAGE>

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.

                                       97

<PAGE>

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

                                            Company:

                                            NORTHWEST PIPELINE
                                              CORPORATION

                                            By:      /s/ Steven J. Malcolm
                                                ------------------------------
                                                Name:  Steve J. Malcolm
                                                Title: Chairman of the Board

                                            Trustee:

                                            JPMORGAN CHASE BANK

                                            By:    Joanne Adams
                                               --------------------------
                                               Name:  Joanne Adams
                                               Title: Vice President

<PAGE>

                                                                       EXHIBIT A

                               [FACE OF SECURITY]

                              [Global Notes Legend]

         [UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES 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 Notes Legend]

         THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR OTHER SECURITIES
LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION UNLESS THE TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT
IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING ITS NOTE IN AN
"OFFSHORE TRANSACTION" PURSUANT TO RULE 904 OF REGULATION S UNDER THE SECURITIES
ACT, (2) AGREES THAT IT WILL NOT PRIOR TO (X) THE DATE WHICH IS TWO YEARS (OR
SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT
OR ANY SUCCESSOR PROVISION THEREUNDER) AFTER THE LATER OF THE ORIGINAL ISSUE
DATE HEREOF (OR OF ANY PREDECESSOR OF THIS NOTE) OR THE LAST DAY ON WHICH THE
COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY
PREDECESSOR OF THIS NOTE) AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY
APPLICABLE LAW (THE "RESALE RESTRICTION TERMINATION DATE"), OFFER, SELL OR
OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY, (B) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A,
TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A INSIDE THE U.S., (D)
PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE U.S.
WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO
ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE
IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; PROVIDED
THAT THE COMPANY, THE TRUSTEE AND THE REGISTRAR SHALL HAVE THE RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER (I) PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE
THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM, AND (II) IN EACH OF THE FOREGOING CASES, TO
REQUIRE THAT A CERTIFICATION OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE
OF THIS NOTE IS COMPLETED AND DELIVERED BY THIS TRANSFEROR TO THE TRUSTEE. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE. AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION,"
"U.S." AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER
THE SECURITIES ACT.

                         NORTHWEST PIPELINE CORPORATION

                    8 1/8% Series [A/Exchange] Note due 2010

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

                                      A-1

<PAGE>

                                                              CUSIP [__________]
No. ___                                                             $___________

         Northwest Pipeline 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 Notes on the
other side of this Note]* on March 1, 2010.

         Interest Payment Dates: March 1 and September 1

         Record Dates:           February 15 and August 15

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

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

                                      A-2

<PAGE>

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

Dated: March 4, 2003

                                            NORTHWEST PIPELINE CORPORATION

                                            By:

                                               Name:
                                               Title:

Certificate of Authentication:

JPMORGAN CHASE BANK,
as Trustee, certifies that this is one of the Notes
     referred to in the within-mentioned Indenture.
By:
     Authorized Signatory

                                      A-3

<PAGE>

                              [REVERSE OF SECURITY]

                         NORTHWEST PIPELINE CORPORATION

                 8 1/8% Series [A/Exchange] Senior Note due 2010

         This Note is one of a duly authorized issue of 8 1/8% Series
[A/Exchange] Senior Notes due 2010 (the "Notes") of Northwest Pipeline
Corporation, a Delaware corporation (the "Company").

         1.       Interest. The Company promises to pay interest on the
principal amount of this Note at 8 1/8% per annum from March 4, 2003 until
maturity. The Company will pay interest semiannually on March 1 and September 1
of each year (each an "Interest Payment Date"), or if any such day is not a
Business Day, on the next succeeding Business Day, to the holder of record at
the close of business on February 15 or August 15 immediately preceding such
Interest Payment Date. Interest on the Notes will accrue from the most recent
Interest Payment Date on which interest has been paid or, if no interest has
been paid, from March 4, 2003; provided that if there is no existing Default in
the payment of interest, and if this Note 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 September 1, 2003.
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.

         [The Holder of this Note is entitled to the benefits of a registration
rights agreement, dated as of March 4, 2003, between the Company and the Initial
Purchasers named therein (the "Registration Rights Agreement"). In the event
that a Registration Default (as defined in the Registration Rights Agreement)
occurs, liquidated damages ("Liquidated Damages") will accrue on the affected
Transfer Restricted Notes and the affected Private Exchange Notes, as
applicable. The rate of Liquidated Damages will be $0.05 per week per $1,000
principal amount of Transfer Restricted Notes and affected Private Exchange
Notes held by such Holder for the first 90-day period immediately following the
occurrence of a Registration Default, increasing by an additional $0.05 per week
per $1,000 principal amount of Transfer Restricted Notes and affected Private
Exchange Notes with respect to each subsequent 90-day period thereafter up to a
maximum amount of Liquidated Damages for all Registration Defaults of $0.50 per
week per $1,000 principal amount of Transfer Restricted Notes and affected
Exchange Notes, from and including the date on which any such Registration
Default shall occur to, but excluding, the earlier of (1) the date on which all
Registration Defaults have been cured or (2) the date on which all Transfer
Restricted Notes and Private Exchange Notes otherwise become freely
transferrable by Holders

                                      A-4

<PAGE>

other than affiliates of the Company without further registration under the
Securities Act.]**

         2.       Ranking. The Notes are senior unsecured obligations of the
Company.

         3.       Redemption and Repurchase; Discharge Prior to Redemption or
Maturity. (a) At any time and from time to time prior to March 1, 2007, the
Company may, at its option, redeem the Notes, in whole or in part, at the
Make-Whole Price plus accrued and unpaid interest and Liquidated Damages, if
any, to the Redemption Date.

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

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

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

         "Treasury Rate" is defined as the yield to maturity (calculated on a
semi-annual bond-equivalent basis) at the time of the computation of United
States Treasury securities with a constant maturity (as compiled by and
published in the most recent Federal Reserve Statistical Release H.15 (510),
which has become publicly available at least two business days prior to the date
of the redemption notice or, if such Statistical Release is no longer published,
any publicly available source of similar market data) most nearly equal to the
then remaining maturity of the Notes; provided that if the Make-Whole Average
Life of such note is not equal to the constant maturity of the United States
Treasury security for which a weekly average yield is given, the Treasury Rate
shall be obtained by linear interpolation (calculated to the nearest one-twelfth
of a year) from the weekly average yields of United States Treasury securities
for which such yields are given, except that if the Make-Whole Average Life of
such Note is less than one year, the weekly average yield on actually traded
United States Treasury securities adjusted to a constant maturity of one year
shall be used.

--------------------------------------
     **   Include only for Transfer Restricted Notes and Private Exchange Notes.

                                      A-5

<PAGE>

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

<TABLE>
<CAPTION>
Twelve-Month Period
Commencing in Year                                   Percentage
-------------------                                  ----------
<S>                                                  <C>
2007                                                  104.063%
2008                                                  102.031%
2009 and thereafter                                   100.000%
</TABLE>

         (c) At any time and from time to time prior to March 1, 2006, the
Company may, at its option, redeem up to 35% of the aggregate principal amount
of the notes with the net cash proceeds received by the Company from any Public
Equity Offering (excluding any net cash proceeds received from Williams or any
of its Affiliates) at a redemption price equal to 108.125% of their principal
amount plus accrued and unpaid interest and Liquidated Damages, if any, to the
Redemption Date; provided that (1) in each case the redemption takes place not
later than 90 days after the closing of the related Public Equity Offering, and
(2) at least 65% of the aggregate principal amount of Notes remains outstanding
immediately after the occurrence of such redemption (excluding Notes held by the
Company and its Subsidiaries).

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

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

         (f) 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.

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

                                      A-6

<PAGE>

         4.       Paying Agent and Registrar. Initially, JPMorgan Chase Bank,
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.

         5.       Indenture. The Company issued the Notes under an Indenture
dated as of March 4, 2003 (as amended, supplemented or otherwise modified form
time to time, the "Indenture") between the Company and the Trustee. The terms of
the Notes 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 Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms.
Capitalized terms used but not defined in this Note have the respective meanings
given to such terms in the Indenture.

         6.       Denominations, Transfer, Exchange. The Notes are in registered
form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Notes may be registered and Notes 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 Notes during the
period between a record date and the corresponding Interest Payment Date.

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

         8.       Amendments and Waivers. Subject to certain exceptions and
limitations, the Indenture or the Notes may be amended or supplemented with the
consent of the Holders of at least a majority in principal amount of the then
outstanding Notes, 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 Notes) by the Holders of at
least a majority in principal amount of the Notes 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 Notes (i) to cure
any ambiguity, omission, defect or inconsistency; (ii) to provide for the
assumption of the Company's obligations to Holders of Notes in the case of a
merger, consolidation or sale of all or substantially all of the assets of the
Company; (iii) to provide for uncertificated Notes in addition to or in place of
certificated Notes; (iv) to provide for any Guarantee of the Notes, to secure
the Notes or to confirm and evidence the release, termination or discharge of
any Guarantee of or Lien securing the Notes when such release, termination or
discharge is permitted by the Indenture; (v) to make any change that would
provide any additional rights or

                                      A-7

<PAGE>

benefits to the Holders of Notes or that does not adversely affect the legal
rights under the Indenture of any such Holder; (vi) to provide for the
acceptance of appointment under the Indenture of a successor Trustee in
compliance with the provisions of the Indenture; or (vii) to comply with any
requirements of the Commission under the Securities Act or the Exchange Act or
in order to effect or maintain the qualification of the Indenture under the TIA.

         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 Notes 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, an amendment, supplement
or waiver under the Indenture may not (i) reduce the principal amount of Notes
whose Holders must consent to an amendment, supplement or waiver, (ii) reduce
the rate of or change the time for payment of interest or Liquidated Damages on
any Note, (iii) reduce the principal of or change the fixed maturity of any Note
or alter the provisions (including, without limitation, the amount of any
premium or the price thereunder) with respect to the redemption of the Notes
(other than as specified in Section 8.02 of the Indenture), (iv) make any Note
payable in money other than that stated in the Note, (v) make any change in the
provisions of the Indenture relating to waivers of past Defaults or the rights
of Holders of Notes to receive payments of principal of, or interest or premium
or Liquidated Damages, if any, on the Notes, (vi) waive a redemption payment
with respect to any Note (other than as specified in Section 8.02 of the
Indenture); (vii) release any Guarantor from any of its obligations under its
Subsidiary Guarantee or the Indenture, except in accordance with the terms of
the Indenture; or (viii) waive a Default or Event of Default in the payment of
principal of, or interest or premium, or Liquidated Damages, if any, on the
Notes (except a rescission of acceleration of the Notes by the Holders of at
least a majority in aggregate principal amount of the Notes and a waiver of the
payment default that resulted from such acceleration) or (ix) make any change in
the preceding amendment and waiver provisions.

         9.       Defaults and Remedies. Events of Default include: (i) default
in payment when due of interest or Liquidated Damages, if any, on the Notes for
30 days; (ii) default in payment when due of principal of, or premium, if any,
on the Notes; (iii) failure by the Company to purchase Notes tendered pursuant
to a Change of Control Offer or an Asset Sale Offer as described under and in
accordance with the terms of Sections 3.11 and 3.12 of the Indenture, or failure
of the Company or any Guarantor to comply with the provisions of Article IV of
the Indenture relating to mergers and consolidations, (iv) failure by the
Company or any of its Restricted Subsidiaries for 60 days after notice from the
Trustee or the Holders of at least 25% of the outstanding principal amount of
the Notes, to comply with any of the other agreements in the Indenture; (v)
certain defaults specified in Section 5.01(a)(v) of the Indenture under any
mortgage, indenture or

                                      A-8

<PAGE>

instrument evidencing Indebtedness for money borrowed by the Company or any of
its Restricted Subsidiaries (or the payment of which is guaranteed by the
Company or any of its Restricted Subsidiaries); (vi) failure by the Company or
any of its Subsidiaries to pay final judgments aggregating in excess of $15
million, which judgments are not paid, discharged or stayed for a period of 60
days; (vii) except as permitted by the Indenture, any Subsidiary Guarantee being
held in any judicial proceeding to be unenforceable or invalid or ceasing for
any reason to be in full force and effect or any Guarantor, or any Person acting
on behalf of any Guarantor, denying or disaffirming its obligations under its
Subsidiary Guarantee; and (viii) certain voluntary or involuntary events
specified in Sections 5.01(a)(viii) and 5.01(a)(ix) of the Indenture 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 Notes may declare the principal of, and
premium, if any, and accrued and unpaid interest and Liquidated Damages, if any,
on all the Notes 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, any Subsidiary that is a Significant Subsidiary
or any group of Subsidiaries that, taken together, would constitute a
Significant Subsidiary specified in Sections 5.01(a)(viii) and 5.01(a)(ix) of
the Indenture, all outstanding Notes will become due and payable immediately
without further action or notice. Holders may not enforce the Indenture or the
Notes except as provided in the Indenture. The Trustee may require indemnity
reasonably satisfactory to it before it enforces the Indenture or the Notes.
Subject to certain limitations, Holders of a majority in principal amount of the
then outstanding Notes 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 under the Indenture. 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 and so long as it determines that withholding
notice is in their interests. The Company must furnish an annual compliance
certificate to the Trustee.

         10.      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.

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

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

                                      A-9

<PAGE>

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

         14.      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).

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

         16.      [Additional Rights and Obligations of Holders of Transfer
Restricted Notes. In addition to the rights provided to Holders of Notes under
the Indenture, Holders of Transfer Restricted Notes and Private Exchange Notes
shall have all the rights set forth in the Registration Rights Agreement
applicable to such Notes. Each Holder of a Transfer Restricted Note or a Private
Exchange Note, 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:

Northwest Pipeline Corporation
295 Chipeta Way
Salt Lake City, Utah 84108
Telephone No.: (801) 583-8800
Attention: Legal Department

--------------------------------------
         *** This paragraph should be included only if the Note is a Transfer
Restricted Note or a Private Exchange Note.

                                      A-10

<PAGE>

                                 ASSIGNMENT FORM

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

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

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

                                    CHECK ONE
(1) [ ] to the Company; 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;

                                      A-11

<PAGE>
        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, or a transaction not subject to, 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 Note 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 Notes 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 Notes, 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.

         If none of the foregoing items are checked, the Trustee or Registrar
shall not be obligated to register this Note 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 Note)

Signature Guarantee:_________________________________________________________

                                      A-12

<PAGE>

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

         The undersigned represents and warrants that it is purchasing this Note
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.

Dated:

                                    Notice: to be executed by an executive
                                            officer****

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

                                      A-13

<PAGE>

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

                                                        __________________,_____

JPMorgan Chase Bank, as Trustee.
Four New York Plaza, 15th Floor
New York, New York 10004
Telecopier No.: (212) 623-6167
Attention: Joanne Adamis

         Re:      8 1/8% Series A Senior Notes due 2010 of Northwest Pipeline
                  Corporation.

Ladies and Gentlemen:

         In connection with our proposed sale of $________________ principal
amount of the above referenced Notes (the "Notes"), 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 Notes 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, any of our
affiliates or any person acting on our or their behalf 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 Northwest Pipeline 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

                                      A-14

<PAGE>

                       SCHEDULE OF EXCHANGES OF NOTES****

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

<TABLE>
<CAPTION>
                                                Principal          Signature of
                Amount of       Amount of       Amount of           authorized
               decrease in     increase in     Global Note       Officer, Trustee
                Principal       Principal     following such         or Notes
  Date of       Amount of       Amount of      decrease (or         Custodian
Transaction    Global Note     Global Note      increase)
<S>            <C>             <C>            <C>                <C>
</TABLE>

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

                                      A-15

<PAGE>

                                                                       EXHIBIT B

                             SUPPLEMENTAL INDENTURE

                          dated as of __________, ____

                                      among

                         NORTHWEST PIPELINE CORPORATION,

                         [The Guarantor(s) Party Hereto]

                                       and

                              JPMORGAN CHASE BANK,
                                   as Trustee

                                       8%
                                Senior Notes due
                                      2010

                                      B-1

<PAGE>

         THIS SUPPLEMENTAL INDENTURE (this "SUPPLEMENTAL INDENTURE"), entered
into as of __________, ____, among Northwest Pipeline Corporation, a Delaware
corporation (the "COMPANY"), [insert each Guarantor executing this Supplemental
Indenture and its jurisdiction of incorporation] (each an "UNDERSIGNED") and
JPMorgan Chase Bank, as trustee (the "TRUSTEE").

                                    RECITALS

         WHEREAS, the Company, the Guarantors party thereto and the Trustee
entered into the Indenture, dated as of March 4, 2003 (the "INDENTURE"),
relating to the Company's 8_% Senior Notes due 2010 (the "NOTES");

         WHEREAS, as a condition to the Trustee entering into the Indenture and
the purchase of the Notes by the Holders, the Company agreed pursuant to the
Indenture to cause any newly acquired or created Domestic Restricted
Subsidiaries to provide Guaranties.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained and intending to be legally bound, the parties to this
Supplemental Indenture hereby agree as follows:

         SECTION 1. Capitalized terms used herein and not otherwise defined
herein are used as defined in the Indenture.

         SECTION 2. Each Undersigned, by its execution of this Supplemental
Indenture, agrees to be a Guarantor under the Indenture and to be bound by the
terms of the Indenture applicable to Guarantors, including, but not limited to,
Article 10 thereof.

         SECTION 3. This Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York.

         SECTION 4. This Supplemental Indenture may be signed in various
counterparts which together will constitute one and the same instrument.

         SECTION 5. This Supplemental Indenture is an amendment supplemental to
the Indenture and the Indenture and this Supplemental Indenture will henceforth
be read together.

                                      B-2

<PAGE>

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

                           NORTHWEST PIPELINE
                           CORPORATION, as Issuer

                           By:

                               Name:
                               Title:

                           [GUARANTOR]

                           By:

                               Name:
                               Title:

                           JPMORGAN CHASE BANK, as Trustee

                           By:

                               Name:
                               Title:

                                      B-3<PAGE>
                                                                    EXHIBIT 10.1

                               PURCHASE AGREEMENT

                                  BY AND AMONG

                       WILLIAMS GAS PIPELINE COMPANY, LLC

                                   AS SELLER,

                          THE WILLIAMS COMPANIES, INC.

           (SOLELY WITH RESPECT TO ITS OBLIGATIONS UNDER SECTION 4.10)

                                       AND

                          LOEWS PIPELINE HOLDING CORP.,

                                    AS BUYER,

                          FOR THE PURCHASE AND SALE OF

                              ALL THE CAPITAL STOCK

                                       OF

                       TEXAS GAS TRANSMISSION CORPORATION,

                             A DELAWARE CORPORATION

                                   DATED AS OF

                                 APRIL 11, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                           PAGE
                                                                                                           ----
<S>                                                                                                        <C>
ARTICLE I. SALE AND PURCHASE.............................................................................    1

   SECTION 1.1. Agreement to Sell and to Purchase; Closing...............................................    1
   SECTION 1.2. Purchase Price; Payment of Estimated Purchase Price at Closing...........................    2
   SECTION 1.3. Adjustment to Purchase Price.............................................................    2

ARTICLE II. REPRESENTATIONS AND WARRANTIES OF SELLER.....................................................    5

   SECTION 2.1. Corporate Organization...................................................................    5
   SECTION 2.2. Capitalization; Title....................................................................    5
   SECTION 2.3. Subsidiaries and Equity Interests........................................................    5
   SECTION 2.4. Validity of Agreement; Authorization.....................................................    6
   SECTION 2.5. No Conflict or Violation.................................................................    6
   SECTION 2.6. Consents and Approvals...................................................................    6
   SECTION 2.7. Financial Statements.....................................................................    6
   SECTION 2.8. Absence of Certain Changes or Events.....................................................    7
   SECTION 2.9. Tax Matters..............................................................................    7
   SECTION 2.10. Absence of Undisclosed Liabilities......................................................    9
   SECTION 2.11. Real Property...........................................................................    9
   SECTION 2.12. Intellectual Property and Computer Hardware.............................................   10
   SECTION 2.13. Licenses, Permits and Governmental Approvals............................................   10
   SECTION 2.14. Compliance with Law.....................................................................   11
   SECTION 2.15. Litigation..............................................................................   11
   SECTION 2.16. Contracts...............................................................................   11
   SECTION 2.17. Brokers.................................................................................   12
   SECTION 2.18. Employee Plans..........................................................................   13
   SECTION 2.19. Insurance...............................................................................   16
   SECTION 2.20. Environmental; Health and Safety Matters................................................   16
   SECTION 2.21. Regulatory Matters......................................................................   17
   SECTION 2.22. Customers...............................................................................   18
   SECTION 2.23. No Other Representations................................................................   18

ARTICLE III. REPRESENTATIONS AND WARRANTIES OF BUYER.....................................................   18

   SECTION 3.1. Corporate Organization...................................................................   18
   SECTION 3.2. Validity of Agreement....................................................................   18
   SECTION 3.3. No Conflict or Violation; No Defaults....................................................   19
   SECTION 3.4. Consents and Approvals...................................................................   19
   SECTION 3.5. Financial Ability........................................................................   19
   SECTION 3.6. Brokers..................................................................................   19
   SECTION 3.7. Independent Investigation................................................................   19
   SECTION 3.8. Investment Intent; Investment Experience; Restricted Securities..........................   20

ARTICLE IV. COVENANTS....................................................................................   20

   SECTION 4.1. Certain Changes and Conduct of Business..................................................   20
</TABLE>

                                       i

<PAGE>

                               Table of Contents

                                  (Continued)

<TABLE>
<CAPTION>
                                                                                                           PAGE
                                                                                                           ----
<S>                                                                                                        <C>
   SECTION 4.2. Access to Properties and Records.........................................................   22
   SECTION 4.3. Employee Matters.........................................................................   23
   SECTION 4.4. Consents and Approvals...................................................................   28
   SECTION 4.5. Further Assurances.......................................................................   28
   SECTION 4.6. Reasonable Efforts.......................................................................   29
   SECTION 4.7. Disclosure Schedule Updates..............................................................   29
   SECTION 4.8. Confidential Information.................................................................   29
   SECTION 4.9. Negotiations.............................................................................   30
   SECTION 4.10. Tax Covenants and Indemnity.............................................................   30
   SECTION 4.11. Insurance, Bonds and Collateral.........................................................   33
   SECTION 4.12. Information Technology..................................................................   34
   SECTION 4.13. Software License........................................................................   35
   SECTION 4.14. Non-software Copyright License..........................................................   36
   SECTION 4.15. Transitional Trademark License..........................................................   36
   SECTION 4.16. Reporting Cooperation...................................................................   37
   SECTION 4.17. Termination of Certain Related Party Contracts..........................................   37
   SECTION 4.18. Other Matters...........................................................................   38
   SECTION 4.19. Guaranties..............................................................................   38
   SECTION 4.20. Company Officers and Directors..........................................................   38
   SECTION 4.21. Work Protocol...........................................................................   38

ARTICLE V. CONDITIONS TO OBLIGATIONS OF BUYER............................................................   39

   SECTION 5.1. Receipt of Documents.....................................................................   39
   SECTION 5.2. Representations and Warranties of Seller.................................................   39
   SECTION 5.3. Performance of Seller's Obligations......................................................   40
   SECTION 5.4. Consents and Approvals...................................................................   40
   SECTION 5.5. No Violation of Orders...................................................................   40
   SECTION 5.6. Transition Services Agreement............................................................   40

ARTICLE VI. CONDITIONS TO OBLIGATIONS OF SELLER..........................................................   40

   SECTION 6.1. Representations and Warranties of Buyer..................................................   40
   SECTION 6.2. Performance of Buyer's Obligations.......................................................   41
   SECTION 6.3. Consents and Approvals...................................................................   41
   SECTION 6.4. No Violation of Orders...................................................................   41
   SECTION 6.5. Purchase Price...........................................................................   41
   SECTION 6.6. Opinion of Buyer's Counsel...............................................................   41

ARTICLE VII. TERMINATION AND ABANDONMENT.................................................................   42

   SECTION 7.1. Methods of Termination; Upset Date.......................................................   42
   SECTION 7.2. Procedure Upon Termination...............................................................   42

ARTICLE VIII. SURVIVAL; INDEMNIFICATION..................................................................   43

</TABLE>

                                       ii

<PAGE>

                               Table of Contents

                                  (Continued)

<TABLE>
<CAPTION>
                                                                                                           PAGE
                                                                                                           ----
<S>                                                                                                        <C>
   SECTION 8.1. Survival.................................................................................   43
   SECTION 8.2. Indemnification Coverage.................................................................   43
   SECTION 8.3. Procedures...............................................................................   45
   SECTION 8.4. Waiver of Consequential, Etc. Damages....................................................   47
   SECTION 8.5. Compliance with Express Negligence Rule..................................................   47
   SECTION 8.6. Liquidated Damages.......................................................................   47
   SECTION 8.7. Remedy...................................................................................   47
   SECTION 8.8. Tax Treatment of Indemnity Payments......................................................   48
   SECTION 8.9. Litigation Assistance....................................................................   48

ARTICLE IX. MISCELLANEOUS PROVISIONS.....................................................................   48

   SECTION 9.1. Publicity................................................................................   48
   SECTION 9.2. Successors and Assigns; No Third-Party Beneficiaries.....................................   48
   SECTION 9.3. Investment Bankers, Financial Advisors, Brokers and Finders..............................   48
   SECTION 9.4. Fees and Expenses........................................................................   49
   SECTION 9.5. Notices..................................................................................   49
   SECTION 9.6. Entire Agreement.........................................................................   50
   SECTION 9.7. Waivers and Amendments...................................................................   50
   SECTION 9.8. Severability.............................................................................   51
   SECTION 9.9. Titles and Headings......................................................................   51
   SECTION 9.10. Signatures and Counterparts.............................................................   51
   SECTION 9.11. Enforcement of the Agreement............................................................   51
   SECTION 9.12. Governing Law...........................................................................   51
   SECTION 9.13. Disclaimer of Warranties................................................................   51
   SECTION 9.14. [Intentionally Omitted].................................................................   52
   SECTION 9.15. Bulk Sales or Transfer Laws.............................................................   52
   SECTION 9.16. Certain Definitions.....................................................................   53
</TABLE>

                                      iii

<PAGE>

Exhibits

Exhibit 4.12         Transition Services Agreement
Exhibit 4.18         Assumption and Agreement
Exhibit 4.19(a)      Buyer's Guaranty
Exhibit 4.19(b)      Seller's Guaranty

Disclosure Schedules

Schedule 1.2              Description of Funded Debt
Schedule 1.3              Working Capital
Schedule 2.1              Corporate Organization
Schedule 2.3              Ownership Interests
Schedule 2.5              No Conflict or Violation
Schedule 2.6              Seller Consents and Approvals
Schedule 2.8              Absence of Certain Changes or Events
Schedule 2.9              Tax Matters
Schedule 2.10             Absence of Company Undisclosed Liabilities
Schedule 2.11(a)          Rights-of-Way
Schedule 2.11(b)          Property Restrictions
Schedule 2.12(a)          Intellectual Property
Schedule 2.12(a)(v)       Company and Seller Trademarks
Schedule 2.12(b)          Shared Computer Hardware
Schedule 2.13             Licenses, Permits and Governmental Approvals
Schedule 2.14             Compliance with Law
Schedule 2.15             Litigation
Schedule 2.16             Contracts
Schedule 2.17             Brokers - Seller
Schedule 2.18(a)          Employee Plans
Schedule 2.18(b)          Business Employees
Schedule 2.18(c)          Employee Plan Qualification
Schedule 2.18(d)          Union/Collective Bargaining Agreement Matters
Schedule 2.19             Insurance
Schedule 2.20             Environmental; Health and Safety Matters
Schedule 2.22             Customer List
Schedule 3.4              Buyer Consents and Approvals
Schedule 3.6              Brokers - Buyer
Schedule 4.1              Certain Changes and Conduct of Business
Schedule 4.1(a)(vii)      Budgeted Capital Expenditures
Schedule 4.11             Bonds, Letters of Credit and Cash Collateral
Schedule 4.17             Related Party Contracts
Schedule 8.2(v)           Retained Litigation
Schedule 8.2(vii)         Retained Contracts

                                       iv

<PAGE>

                               PURCHASE AGREEMENT

                  THIS PURCHASE AGREEMENT (this "AGREEMENT") is made and entered
into as of this 11th day of April, 2003, by and among WILLIAMS GAS PIPELINE
COMPANY, LLC, a Delaware limited liability company ("SELLER"), THE WILLIAMS
COMPANIES, INC., a Delaware corporation ("PARENT") (solely with respect to its
obligations under Section 4.10 hereof), and LOEWS PIPELINE HOLDING CORP., a
Delaware corporation ("BUYER").

                              W I T N E S S E T H:

                  WHEREAS, Seller owns 100% of the issued and outstanding
capital stock (the "SHARES") of Texas Gas Transmission Corporation, a Delaware
corporation (the "COMPANY"); and

                  WHEREAS, Parent owns 100% of the issued and outstanding
limited liability company interests of Seller; and

                  WHEREAS, Buyer desires to purchase the Shares from Seller, and
Seller desires to sell the Shares to Buyer, in each case upon the terms and
subject to the conditions set forth in this Agreement;

                  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; CLOSING.

         (a) On the Closing Date (as hereinafter defined), and upon the terms
and subject to the conditions set forth in this Agreement, Seller shall sell,
assign, transfer, convey and deliver to Buyer, and Buyer shall purchase and
accept from Seller, all of the Shares, 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 other than as may be set
forth in the Organizational Documents (as defined in Section 2.2) of the Company
("ENCUMBRANCES").

         (b) The closing of such sale and purchase (the "CLOSING") shall take
place at 10:00 a.m. (Houston, Texas time) at the offices of Andrews & Kurth LLP
in Houston, Texas (or at such other location as the parties hereto shall agree
in writing) no later than five (5) business days after the satisfaction of the
conditions to Closing contained in Articles V and VI (other than those
conditions that by their nature are to be fulfilled at Closing), or at such
other time and date as the parties hereto shall agree in writing (the "CLOSING
DATE"). At the Closing, Seller shall deliver to Buyer the stock certificates
representing the Shares duly endorsed in blank, or accompanied by stock powers
duly executed in blank in form and substance reasonably acceptable to Buyer and
Seller (the "STOCK TRANSFER"). In full consideration and exchange for the
Shares, Buyer shall thereupon pay to Seller the Purchase Price as provided in
Section 1.2 at the times and in the manner described in Sections 1.2 and 1.3.
Notwithstanding that the Purchase Price shall be

<PAGE>

subject to subsequent adjustment pursuant to Section 1.3, the delivery of the
Estimated Purchase Price to Seller under Section 1.2(b) shall result in the full
and final sale of the Shares.

                  SECTION 1.2. PURCHASE PRICE; PAYMENT OF ESTIMATED PURCHASE
PRICE AT CLOSING.

         (a) The purchase price for the Shares (the "PURCHASE PRICE") shall be
$795,000,000.00 as such amount is adjusted in accordance with Section 1.3. In
addition, Buyer acknowledges that the Company has outstanding Funded Debt in the
principal amount of $250,000,000.00 (as of December 31, 2002), as further
described on Schedule 1.2, plus accrued and unpaid interest thereon.

         (b) On the Closing Date, Buyer shall deliver to Seller $795,000,000.00
as adjusted pursuant to subsection (c) below (the "ESTIMATED PURCHASE PRICE").
Payment to Seller shall be paid by wire transfer to Seller of immediately
available funds made to a bank account in the United States of America
designated in writing by Seller not less than three (3) business days before the
Closing Date.

         (c) At the Closing, Seller shall deliver to Buyer a certificate setting
forth its best estimate of the Working Capital as of the Closing Date based on
the same procedures described in Section 1.3 for determining the Working Capital
(the "ESTIMATED WORKING CAPITAL"). If Estimated Working Capital exceeds Working
Capital on the Base Statement, then the amount to be paid to Seller at Closing
under subsection (b) above shall be increased by the amount of such excess. If
Working Capital on the Base Statement exceeds Estimated Working Capital, then
the amount to be paid to Seller under subsection (b) above shall be decreased by
the amount of such excess.

                  SECTION 1.3. ADJUSTMENT TO PURCHASE PRICE.

         (a) Schedule 1.3 sets forth the Working Capital of the Company as of
December 31, 2002 (the "BASE STATEMENT") based on the Financial Statements and
as such is determined in accordance with this Agreement. "WORKING CAPITAL" shall
mean Current Assets less Current Liabilities. "CURRENT ASSETS" shall mean
current assets of the Company as reflected in the consolidated financial
statements of the Company as of the relevant date of determination. "CURRENT
LIABILITIES" shall mean the current liabilities of the Company as reflected in
the consolidated financial statements of the Company as of the relevant date of
determination. Notwithstanding the foregoing, for purposes of calculating
Working Capital, none of the following shall be included in Current Assets or
Current Liabilities: (i) the current assets and current liabilities, if any, of
the Retained Entities; (ii) assets or liabilities of the Company related to
deferred Taxes or the payment of Taxes (including Taxes for which Seller is
liable under Section 4.10); (iii) the current portion of any principal payment
obligation of Funded Debt; (iv) assets related to prepaid insurance; (v)
intercompany receivables or intercompany payables (that is, receivables from or
payables to Seller or any of its Affiliates (other than the Company)); (vi) any
current assets or current liabilities related to the matters being retained by
the Seller under Section 8.2(a)(iv), Section 8.2(a)(v), and Section 8.2(a)(vi);
(vii) transportation and exchange gas receivables and payables, storage gas
receivables and payables, costs recoverable from customers and gas stored
underground; (viii) any reversal of current liability reserves or reversals of
current assets reserves, including contra-assets accounts for current assets
(including

                                       2

<PAGE>

allowances for doubtful accounts); (ix) any current liabilities relating to
checks that have been issued but have not yet cleared the bank accounts; (x) any
changes to current assets and current liabilities resulting from a
reclassification of any assets and liabilities included in the Financial
Statements; or (xi) any changes to current assets or current liabilities
resulting from the accrual of liability in respect of FAS 112 long term
disability to the extent relating to the salary component. Within 60 days
following the Closing Date, Buyer shall prepare and deliver to Seller a
statement (the "CLOSING STATEMENT"), which shall set forth in reasonable detail
(A) the amount of Working Capital of the Company as of the Closing Date based
upon a detailed balance sheet prepared as of the Closing Date on a basis
consistent with the balance sheet included in the Base Statement; (B) a copy of
such Closing Date balance sheet and (C) a calculation of the adjustment to the
Purchase Price that is payable based upon the difference between the Estimated
Working Capital (as defined in Section 1.2(c)) and the Working Capital in the
Closing Statement. Seller agrees, at no cost to Buyer, to give Buyer and its
authorized representatives reasonable access (provided that in their sole
discretion Seller or its representatives may accompany Buyer and its
representatives) to such employees, officers and other facilities and such books
and records of Seller as are reasonably necessary to allow Buyer and its
authorized representatives to prepare the Closing Statement. The Base Statement
shall be prepared in accordance with GAAP (as defined in Section 2.7) and on a
basis consistent with the Financial Statements using the same accounting
methods, policies, practices, procedures and adjustments as were used in the
preparation of the Financial Statements (except as set forth in this Section 1.3
and in Schedule 1.3). The Closing Statement shall be prepared in accordance with
GAAP and on a basis consistent with the Financial Statements, using the same
accounting methods, policies, practices, procedures and adjustments as were used
in the preparation of the Base Statement, except that Current Liabilities in the
Closing Statement shall include as a liability the amount, if any, by which the
accrual of liability (whether current or long term) in respect of FAS 112 long
term disability to the extent relating to the salary component exceeds
$2,500,000.00.

         (b) Following its receipt from Buyer of the Closing Statement, Seller
shall have 30 days to review the Closing Statement and to inform Buyer in
writing of any disagreement which it may have with the Closing Statement, which
objection (i) shall specify in reasonable detail Seller's disagreement with the
Closing Statement and (ii) shall include a detailed adjusted balance sheet
prepared as of the Closing Date reflecting the adjustments and changes requested
by Seller (the "OBJECTION"). Buyer agrees, at no cost to Seller, to give Seller
and its authorized representatives reasonable access to such employees, officers
and other facilities and such books and records of the Company as are reasonably
necessary to allow Seller and its authorized representatives to review and
confirm the Closing Statement prepared by Buyer. If Buyer does not receive the
Objection within such 30-day period, the amount of Working Capital set forth on
the Closing Statement delivered pursuant to Section 1.3(a) shall be deemed to
have been accepted by Seller and shall become binding upon Seller. If Seller
does timely deliver an Objection to Buyer, Buyer shall then have 10 days from
the date of receipt of such Objection (the "REVIEW PERIOD") to review and
respond to the Objection. Buyer and Seller shall attempt in good faith to
resolve any disagreements with respect to the determination of Working Capital
of the Company as of the Closing Date or the amount of the adjustment to the
Purchase Price. If they are unable to resolve all of their disagreements with
respect to the determination of Working Capital of the Company as of the Closing
Date or the amount of the adjustment to the Purchase Price within 10 days
following the expiration of Buyer's Review Period, they may refer, at the

                                       3

<PAGE>

option of either Buyer or Seller, their differences to PriceWaterhouseCoopers,
L.L.C., or if PriceWaterhouseCoopers, L.L.C. declines to accept such engagement,
a nationally recognized firm of independent public accountants selected jointly
by Buyer and Seller, who shall determine only with respect to the differences so
submitted, whether and to what extent, if any, the amount of Working Capital of
the Company as of the Closing Date set forth in the Closing Statement requires
adjustment. If Buyer and Seller are unable to so select the independent public
accountants within five days of PriceWaterhouseCoopers, L.L.C. declining to
accept such engagement, either Buyer or Seller may thereafter request that the
CPR Institute for Dispute Resolution make such selection (as applicable,
PriceWaterhouseCoopers, L.L.C., the firm selected by Buyer and Seller or the
firm selected by the CPR Institute for Dispute Resolution is referred to as the
"CPA FIRM"). Buyer and Seller shall direct the CPA Firm to use its reasonable
best efforts to render its determination within 30 days after the issue is first
submitted to the CPA Firm. The CPA Firm's determination shall be conclusive and
binding upon Buyer and Seller. The fees and disbursements of the CPA Firm shall
be shared equally by Buyer and Seller. Buyer and Seller shall make readily
available to the CPA Firm all relevant books and records relating to the Closing
Statement and all other items reasonably requested by the CPA Firm. The Closing
Statement as agreed to by Buyer and Seller or as determined by the CPA Firm
shall be referred to as the "FINAL CLOSING STATEMENT."

         (c) If Working Capital on the Final Closing Statement exceeds Estimated
Working Capital, then Buyer shall pay to Seller in cash the amount of such
excess. If Estimated Working Capital exceeds Working Capital on the Final
Closing Statement, then Seller shall pay to Buyer in cash the amount of such
excess. All amounts payable under this Section 1.3(c) shall be paid within three
business days of the determination of the Final Closing Statement by wire
transfer of immediately available funds to a bank account in the United States
of America designated in writing by the recipient not less than one business day
before such payment.

         (d) Seller and Buyer hereby agree that, on or before the Closing Date,
Seller shall take all such actions as may be necessary or appropriate to pay in
full, offset, dividend or distribute to the Seller or its Affiliates or
otherwise to cancel without payment, all intercompany accounts (whether
classified as short-term or long term accounts) between the Company, on the one
hand, and Seller and any Person which, as of the date of this Agreement, is or,
prior to Closing, becomes an Affiliate of Seller (other than the Company), on
the other hand, other than amounts due under the contract described in Item 2 of
Schedule 2.16(e); provided, however, that Buyer may, on or prior to May 1, 2003,
notify Seller that Buyer shall assume from Seller, as of the Closing Date,
Seller's obligations to Company that are reflected in the outstanding balance as
of the Closing Date of "Advances to Affiliates" shown in the Closing Statement
pursuant to the Intercompany Note Agreement described on Schedule 2.16(c). Any
assumption of liabilities by Buyer under the previous sentence shall be
implemented by an assignment and assumption agreement reasonably acceptable to
Seller. Seller shall be responsible for all checks issued in connection with the
Company prior to the Closing Date but that have not cleared as of the Closing
Date.

                                       4

<PAGE>

                                   ARTICLE II.
                    REPRESENTATIONS AND WARRANTIES OF SELLER

                  As of the date hereof, Seller hereby represents and warrants
to Buyer as follows:

                  SECTION 2.1. CORPORATE ORGANIZATION.

         The Company is a corporation duly organized, validly existing and in
good standing under the laws of the state of Delaware. Seller is a limited
liability company, duly formed, validly existing and in good standing under the
laws of the state of Delaware. The Company has all requisite power and authority
and all governmental licenses, authorizations, permits, consents and approvals
to own its properties and assets and to conduct its business as now conducted,
except where the failure to have such licenses, authorizations, permits,
consents and approvals would not have a Material Adverse Effect (as defined in
Section 9.16). The Company is duly qualified to do business as a foreign entity
and is in good standing in each jurisdiction where the character of the
properties owned or leased by it or the nature of the business conducted by it
makes such qualification necessary, except where the failure to be so qualified
or in good standing would not individually or in the aggregate be reasonably
likely to have a Material Adverse Effect. Schedule 2.1 sets forth all of the
jurisdictions in which the Company is qualified to do business.

                  SECTION 2.2. CAPITALIZATION; TITLE.

         All of the outstanding Shares of the Company are owned of record and
beneficially by Seller. All of the Shares have been validly issued and are fully
paid and nonassessable. Except for this Agreement, there are no outstanding
options, warrants, agreements, conversion rights, preemptive rights or other
rights to subscribe for, purchase or otherwise acquire the Shares. There are no
voting trusts or other agreements or understandings to which Seller or the
Company is a party with respect to the voting of the Shares. There is no
indebtedness of the Company having general voting rights issued and outstanding.
Except for this Agreement, there are no outstanding obligations of any Person to
repurchase, redeem or otherwise acquire outstanding Shares or any securities
convertible into or exchangeable for any Shares. Seller has valid and marketable
title to the Shares free and clear of any Encumbrances. True and correct copies
of the Organizational Documents (defined below) of the Company with all
amendments thereto to the date hereof, have been made available by Seller to the
Buyer or its representatives. "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 2.3. SUBSIDIARIES AND EQUITY INTERESTS.

         TGT Sub and the LLC are the only subsidiaries, direct or indirect, of
the Company, and except for the ownership interests in the Retained Entities and
as provided in Schedule 2.3, 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. The Company is not subject to any obligation or
requirement to make any investment (in the form of a loan, capital contribution
or similar payment) to or in any other Person, except as provided in Schedule
2.3. The Company

                                       5

<PAGE>

does not have any rights to acquire by any means, directly or indirectly, any
capital stock, voting rights, equity interests or investments in another Person.

                  SECTION 2.4. VALIDITY OF AGREEMENT; AUTHORIZATION.

         Each of Seller and Parent has the power to enter into this Agreement
and the Transaction Documents (as defined herein) to which such Person is a
party and to carry out its obligations hereunder and thereunder. The execution
and delivery of this Agreement and the Transaction Documents to which Seller or
Parent is a party and the performance by Seller or Parent of its obligations
hereunder and thereunder have been duly authorized by the Board of Directors of
Parent and the Management Committee of Seller, and no other proceedings on the
part of Seller or Parent are necessary to authorize such execution, delivery and
performance. This Agreement and the Transaction Documents to which Seller or
Parent is a party have been duly executed by such Person and constitute such
Person's valid and binding obligation enforceable against such Person in
accordance with their 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 2.5. NO CONFLICT OR VIOLATION.

         Except as set forth on Schedule 2.5, the execution, delivery and
performance by Seller and Parent of this Agreement and the Transaction Documents
to which Seller or Parent is a party does not and will not: (a) violate or
conflict with any provision of the Organizational Documents of Seller or Parent;
(b) violate any applicable provision of 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)
violate, result in a breach of, constitute (with due notice or lapse of time or
both) a default or cause any obligation, penalty or premium to arise or accrue
under any contract, lease, loan agreement, mortgage, security agreement, trust
indenture or other agreement or instrument to which Seller, Parent or the
Company is a party or by which either of them is bound or to which any of their
respective properties or assets is subject; (d) result in the creation or
imposition of any Encumbrance upon any of the properties or assets of the
Company; or (e) result in the cancellation, modification, revocation or
suspension of any License (as defined in Section 2.13) of the Company, except in
the cases of clauses (b) - (e) above as would not be reasonably likely to have a
Material Adverse Effect.

                  SECTION 2.6. CONSENTS AND APPROVALS.

         Except as disclosed on Schedule 2.6, no material consent, approval or
authorization of, or filing, registration or qualification with, any
Governmental Authority or any other Person (on the part of Seller or the
Company), is required as a condition to the execution and delivery of this
Agreement and the Transaction Documents to which either of them is a party or
the performance of their respective obligations hereunder or thereunder.

                  SECTION 2.7. FINANCIAL STATEMENTS.

         (a) Seller has heretofore furnished to Buyer copies of the audited
consolidated financial statements of the Company as of December 31, 2002 and the
notes thereto (the "FINANCIAL

                                       6

<PAGE>

STATEMENTS"). The Financial Statements were prepared from the books and records
of the Company in accordance with generally accepted accounting principles
applied on a consistent basis throughout the periods covered thereby ("GAAP").
The Financial Statements present fairly in all material respects the
consolidated financial position, results of operations and cash flows of the
Company as of such dates and for the periods then ended.

         (b) The Company has filed all required forms, reports and documents,
and amendments thereto, with the SEC since January 1, 2001 (the "SEC REPORTS"),
each of which complied in all material aspects with all applicable requirements
of the Securities Act of 1933, as amended (the "SECURITIES ACT"), and the
Securities Exchange Act of 1934, as amended (the "EXCHANGE ACT"), each as in
effect on the dates such forms, reports, and documents, and amendments thereto
were filed. None of the SEC Reports, including without limitation, any financial
statements or schedules included or incorporated by reference therein,
contained, when filed, any untrue statement of a material fact or omitted to
state a material fact required to be stated or incorporated by reference therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The consolidated financial
statements of the Company included in the SEC Reports complied in all material
respects with applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto as in effect on the dates such SEC
Reports were filed, and fairly present, in all material respects and in
conformity with GAAP applied on a consistent basis (except as may be indicated
in the notes thereto), the consolidated financial position of the Company and
its consolidated subsidiaries as of the dates thereof and their consolidated
results of operations and statements of cash flows for the periods then ended
(subject, in the case of the unaudited interim financial statements, to normal
year end adjustments consistent with prior periods).

                  SECTION 2.8. ABSENCE OF CERTAIN CHANGES OR EVENTS.

         Except as set forth in Schedule 2.8 and except for the intercompany
receivables or payables that may be paid, cancelled or offset prior to Closing
as contemplated in Section 1.3(d) hereof, since December 31, 2002, the business
of the Company has been conducted in the ordinary course consistent with past
practices and the Company has not taken any of the actions described in Section
4.1(a), except in connection with entering into this Agreement. Since December
31, 2002, there has not been any event or condition that has had or is
reasonably likely to have a Material Adverse Effect, except as disclosed in
Schedule 2.8.

                  SECTION 2.9. TAX MATTERS.

         (a) For purposes of this Agreement, "TAX RETURNS" shall mean returns,
reports, declarations, forms, claims for refund, 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 (defined below), whether or not any Tax is actually imposed, and shall
include any amended returns, whether or not required as a result of examination
adjustments made by the Internal Revenue Service ("IRS") or other Tax authority.
For purposes of this Agreement, "TAX" or "TAXES" shall mean any and all federal,
state, local, foreign and other taxes, levies, fees, imposts and duties of
whatever kind (including any interest, penalties or additions to the tax imposed
in connection therewith or with respect thereto), including, without

                                       7

<PAGE>

limitation, taxes imposed on, or measured by, income, franchise, profits or
gross receipts, and also 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, environmental, alternative or add-on minimum and gains taxes and
customs duties.

         (b) Except as disclosed on Schedule 2.9, (i) the Company has filed (or
joined in the filing of) when due all Tax Returns required by applicable law to
be filed with respect to the Company other than those Tax Returns the failure of
which to file would not have a Material Adverse Effect; (ii) all such Tax
Returns were true, correct and complete in all material respects as of the time
of such filing; (iii) all material Taxes owed by the Company (whether or not
shown on any Tax Return) if required to have been paid, have been timely paid in
full (except for Taxes which are being contested in good faith in appropriate
proceedings); (iv) any material liability of the Company for Taxes not yet due
and payable, or which are being contested in good faith in appropriate
proceedings, has been fully provided for on the financial statements of the
Company; (v) there is no action, suit, proceeding, investigation, audit or claim
now pending against, or with respect to, the Company in respect of any material
Tax or Tax assessment, nor is any claim for additional material Tax or Tax
assessment asserted in writing by any Tax authority; (vi) since January 1, 1999,
no written claim has been made by any Tax authority in a jurisdiction where the
Company does not currently file a Tax Return that it is or may be subject to Tax
by such jurisdiction, nor to Seller's Knowledge has any such assertion been
threatened in writing; (vii) the Company has no outstanding request for any
extension of time within which to pay its Taxes or file its Tax Returns; (viii)
there has been no waiver or extension of any applicable statute of limitations
for the assessment or collection of any Taxes of the Company; (ix) Seller and
the LLC have at all times since their inception been treated as disregarded
entities of Parent and the Company, respectively, for federal income tax
purposes; (x) neither Parent nor Seller is a "foreign person" within the meaning
of Section 1445 of the United States Internal Revenue Code of 1986, as amended
(the "CODE"); (xi) the Company is not a party to any Tax sharing or other
agreement, whether written or unwritten, providing for the payment of Taxes,
payment for Tax losses, entitlements to refunds or similar Tax matters; (xii)
the Company has withheld and paid all material Taxes required to be withheld and
paid by the Company; (xiii) there are no liens for Taxes upon the Shares or any
assets of the Company except for Taxes not yet due and payable; (xiv) no
property of the Company is subject to the provisions of former Section 168(f)(8)
of the Code; (xv) the Company has not made, is not obligated to make and is not
a party to any agreement that under certain circumstances could obligate it to
make any payments that will not be deductible under Section 162(m) of the Code
(or any corresponding provision of state, local or foreign law) or that would
constitute an "excess parachute payment" under Section 280G of the Code (or any
corresponding provisions of state, local or foreign law) without regard to
whether such payment is reasonable compensation for personal services performed
or to be performed in the future; (xvi) the Company has never been a member of
an affiliated group filing a consolidated federal income Tax Return other than a
group the common parent of which was Parent, and Parent is eligible to make the
Section 338(h)(10) Election (as defined in Section 4.10(e)); (xvii) the Company
will not be required to include any item of income in, or exclude any item of
deduction or loss from, taxable income for any taxable period or portion thereof
beginning on or after the Closing Date as a result of (A) a change in method of
accounting for a taxable period beginning on or before the Closing Date, (B) any
"closing agreement", as

                                       8

<PAGE>

described in Section 7121 of the Code (or any corresponding provision of state,
local or foreign law) executed on or before the Closing Date, (C) any sale
reported on the installment or open transaction method where such sale occurred
on or prior to the Closing Date, (D) any prepaid amount received on or prior to
the Closing Date, or (E) any intercompany transaction or excess loss account
described in Treasury Regulations under Section 1502 of the Code (or similar
provisions of state, local or foreign law); (xviii) the Company has not filed a
consent under Section 341(f) of the Code; and (xix) Schedule 2.9 lists all
income Tax Returns filed with respect to the Company for tax periods ending
after December 31, 1998 and indicates those income Tax Returns that have been
audited or which are currently under audit.

         (c) Except for the representations and warranties in Section 2.18, the
only representations and warranties given in respect of Tax matters are those
contained in this Section 2.9 and none of the other representations and
warranties herein shall be deemed to constitute, directly or indirectly, a
representation and warranty in respect of Tax matters.

                  SECTION 2.10. ABSENCE OF UNDISCLOSED LIABILITIES.

                  Except as disclosed on Schedule 2.10, none of the Company, TGT
Sub or the LLC has any material indebtedness, material obligation or material
liability of any kind (whether known or unknown, accrued, absolute, contingent
or otherwise), which is not shown or provided for on the consolidated balance
sheet of the Company included in the Financial Statements other than liabilities
incurred or accrued in the ordinary course of business (including liens of
current taxes and assessments not in default) since December 31, 2002.

                  SECTION 2.11. REAL PROPERTY.

         (a) Except as disclosed on Schedule 2.11(a) and except for Permitted
Encumbrances:

                  (i) the Company owns valid and defensible fee title to, or
         holds a valid leasehold interest in, or a right-of-way or easement
         through (collectively, the "RIGHTS-OF-WAY"), all real property ("REAL
         PROPERTY") used or necessary for the conduct of its business as it is
         presently conducted; and

                  (ii) except for the Rights-of-Way and Real Property that are
         subject to clause (i), the Company has good and valid title to, or a
         valid leasehold interest in, all of the other material tangible assets
         and properties which it owns or leases.

         (b) All Real Property and Rights-of-Way and such other material assets
and properties owned or leased by the Company are owned or leased free and clear
of all Encumbrances, except for, in each case, (i) Encumbrances set forth on
Schedule 2.11(b), (ii) liens for current Taxes not yet due and payable or for
Taxes the validity of which is being contested in good faith, (iii) Encumbrances
which will be discharged on or prior to the Closing Date, (v) written
agreements, laws, ordinances and regulations affecting building use and
occupancy or reservations of interest in title (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, (v)
mechanics', carriers', workmen's and repairmen's liens and other similar liens,
charges, and claims arising or incurred in the ordinary course of business
relating to obligations as to which

                                       9

<PAGE>

there is no default on the part of the Company or the validity of which are
being contested in good faith by the Company, and (vi) Encumbrances, Property
Restrictions, and Rights-of-Way that, individually and in the aggregate, do not
materially detract from the value or materially interfere with the present use
of the asset subject thereto (clauses (i) through (vi) above referred to
collectively as "PERMITTED ENCUMBRANCES").

                  SECTION 2.12. INTELLECTUAL PROPERTY AND COMPUTER HARDWARE.

         (a) Except as set forth in Schedule 2.12(a),

                  (i) Schedule 2.12(a) sets forth a complete and accurate list
         of all material Intellectual Property owned or used by the Company or
         by third parties on behalf of the Company in connection with its
         business. Except as set forth on Schedule 2.12(a), the Company owns all
         right, title and interest in and to, or has a valid and enforceable
         license or other right to use, in all material respects, all material
         Intellectual Property used by the Company in connection with its
         business, which represents all material Intellectual Property rights
         necessary for the Company to conduct its business as presently
         conducted;

                  (ii) to Seller's Knowledge, the Intellectual Property owned or
         used by the Company does not infringe upon the rights of any third
         party;

                  (iii) neither Seller nor any of its Affiliates (including the
         Company) has received any written notice or written claim challenging
         or questioning the validity or effectiveness of the Company's rights to
         any of the material Intellectual Property used by the Company in the
         conduct of its business;

                  (iv) the Company is not liable to any Person for any royalty
         or other compensation for any of the Intellectual Property used by the
         Company or by third parties on behalf of the Company in the conduct of
         its business; and

                  (v) Schedule 2.12(a)(v) sets forth a complete and accurate
         list of all material trademarks, material service marks and material
         trade names used exclusively by the Company; Schedule 2.12(a)(v) also
         sets forth a complete and accurate list of the trademarks, service
         marks and trade names owned by Seller or any of its Affiliates (other
         than the Company) that are used by the Company in the conduct of its
         business (collectively "SELLER'S MARKS").

         (b) Computer hardware that is shared between other subsidiaries and the
Company, and which is not owned by the Company, is not included in the
transaction contemplated under this Agreement. A listing of such hardware, any
related Software and the owner thereof, is identified in Schedule 2.12(b). None
of the items listed in Schedule 2.12(b) is included as an asset in the balance
sheet constituting a part of the Financial Statements.

                  SECTION 2.13. LICENSES, PERMITS AND GOVERNMENTAL APPROVALS.

         Except as set forth on Schedule 2.13, the Company has all material
licenses, material permits, material certificates, material franchises, material
authorizations and material approvals

                                       10

<PAGE>

required to be issued or granted to the Company by any Governmental Authority
necessary for the conduct of its business as currently conducted (each a
"LICENSE" and, collectively, the "LICENSES"). Each such License has been issued
to, and duly obtained and fully paid for by, the holder thereof and, in all
material respects, is valid, in full force and effect. As used in this Section
2.13, the term License does not include any matters with respect to Intellectual
Property, which are subject to Section 2.12, or any Environmental Permits, which
are subject to Section 2.20(a)(iv).

                  SECTION 2.14. COMPLIANCE WITH LAW.

         Except as relates to Tax matters (which are provided for in Section
2.9), or environmental (which are provided for in Section 2.20) and except as
set forth on Schedule 2.14, since January 1, 2001, the operations of the Company
have been conducted in material compliance with all applicable laws,
regulations, orders and other requirements of all Governmental Authorities
having jurisdiction over the Company and its assets, properties and operations.
Neither Seller nor the Company has received written notice of any material
violation of any such law, license, regulation, order or other legal
requirement, or is in material default with respect to any order, writ,
judgment, award, injunction or decree of any Governmental Authority, applicable
to the Company or any of its assets, properties or operations.

                  SECTION 2.15. LITIGATION.

         (a) Except as set forth on Schedule 2.15,

                  (i) there are no Legal Proceedings (defined below) pending or,
         to the Knowledge of Seller, threatened against or involving the
         Company,

                  (ii) there are no Legal Proceedings pending or, to the
         Knowledge of Seller, threatened against or involving the Seller that,
         individually or in the aggregate, are reasonably likely to have a
         Material Adverse Effect or materially impair or delay the ability of
         Seller to perform its obligations under this Agreement or consummate
         the transactions contemplated by this Agreement, and

                  (iii) there is no order, judgment, injunction or decree of any
         Governmental Authority outstanding against Seller or the Company that,
         individually or in the aggregate, would have a Material Adverse Effect
         or materially impair or delay the ability of Seller to perform its
         obligations under this Agreement or consummate the transactions
         contemplated by this Agreement.

         (b) "LEGAL PROCEEDING" shall mean any judicial, administrative or
arbitral actions, suits, proceedings (public or private), or governmental
proceedings before any Governmental Authority but shall not include any such
actions, suits or proceedings that are subject to Section 2.20(a)(iii).

                  SECTION 2.16. CONTRACTS.

         Schedule 2.16 sets forth (subject to the dollar amount limitations of
clauses (a) or (b) below) a true and complete list of the following contracts,
agreements, instruments and

                                       11

<PAGE>

commitments to which the Company is a party or otherwise relating to or
affecting any of its assets, properties or operations, whether written or oral:

         (a) contracts which require or could require future payments by the
Company in excess of $100,000.00 per year;

         (b) contracts which require or could require future payments to the
Company of amounts greater than $250,000.00 but excluding all interruptible
transportation agreements of the Company;

         (c) 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 for which the Company has or could have any obligations or
liability after the Closing;

         (d) contracts that cannot be cancelled or terminated by the Company on
12 months' prior notice or less, but excluding all pipeline transportation
contracts and contracts and agreements relating to the Company's Real Property
or Rights-of-Way;

         (e) contracts which are with an Affiliate of the Seller (the "AFFILIATE
CONTRACTS"); and

         (f) partnership or joint venture or non-compete agreements ((a) - (f)
collectively, "MATERIAL CONTRACTS");

         Each Material Contract is, in all material respects, (i) valid, binding
and enforceable against the Company and, to Seller's Knowledge, each of the
other parties thereto in accordance with its terms and (ii) in full force and
effect on the date hereof. The Company and, to Seller's Knowledge, the other
party or parties to any Material Contract have performed in all material
respects all obligations required to be performed by them under, and are not in
material default or material breach of in respect of, any Material Contract, and
no event has occurred which, with due notice or lapse of time or both, would
constitute such a material default or material breach. The Company has not, and
to Seller's Knowledge, the other party or parties to any Material Contract have
not, terminated, canceled, modified or waived any material term or condition of
any Material Contract. Seller has made available to Buyer or its representatives
true and complete originals or copies of all the Material Contracts (other than
Material Contracts that are subject to a confidentiality agreement, the material
terms of which have been described to Buyer) and a copy of every default notice
received by Seller, the Company or any of their Affiliates during the past one
year with respect to any of the Material Contracts. Other than the List C
Contracts (as defined in Section 9.16), there are no contracts, agreements,
instruments or commitments that are subject to the Agency Agreement, dated as of
May 1, 1995, between the Company and Williams Energy Services Company, as
amended.

                  SECTION 2.17. BROKERS.

         Except as disclosed on Schedule 2.17, Seller has not employed the
services of an investment banker, financial advisor, broker or finder in
connection with this Agreement or any of the transactions contemplated hereby.

                                       12

<PAGE>

                  SECTION 2.18. EMPLOYEE PLANS.

         (a) Except as disclosed on Schedule 2.18(a), none of Seller, the
Company, or any of their Affiliates, sponsors or maintains, 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, stock appreciation right, equity incentive, welfare,
profit-sharing, retirement, disability, vacation, severance, hospitalization,
insurance, incentive, deferred compensation, compensation, fringe benefit,
excess benefit plan, top-hat plan, rabbi trust, secular trust, nonqualified
annuity contract, golden parachute payment (including all frozen plans and
terminated plans that have not completed final distribution of their assets) or
other material employee benefit plan, fund, trust, program or arrangement, in
each of the foregoing cases which cover, are maintained for the benefit of, or
relate to any or all current or former employees, directors or independent
contractors of the Company or any of their dependents, survivors or
beneficiaries, whether or not legally binding and whether oral or in writing
("EMPLOYEE PLANS"). Seller or the Company has made available to the Buyer
complete and correct copies of each Employee Plan (or a written description
thereof), and where applicable: (i) the most recent annual report on Form 5500,
together with schedules, as required, and any required financial statements and
opinions; (ii) the most recent determination letter issued by the IRS; (iii) the
most recent summary plan description and all modifications (iv) any trust,
insurance or annuity contracts maintained in connection therewith; and (v) the
most recent actuarial valuation.

         (b) Schedule 2.18(b) sets forth a list (i) showing the names of all of
the employees of the Company (the "BUSINESS EMPLOYEES") showing for each: (i)
hire date, current job title or description, current salary level (including any
bonus or deferred compensation arrangements) and any bonus, commission or other
remuneration paid during fiscal year 2002 describing any contractual
arrangements with such employee; and (ii) identifying any Business Employees
either currently on short-term or long-term disability under any Employee Plan.
Neither Buyer nor the Company will incur any liability under any severance
agreement, deferred compensation agreement, employment agreement or Employee
Plan as a result of the consummation of the transactions contemplated under this
Agreement. To Seller's Knowledge, none of the Business Employees 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 Buyer or that would conflict
with the Company's business as presently conducted. Neither Seller nor the
Company has received notice from any officer or group of Business Employees,
that such person(s) intends to terminate their employment.

         (c) Except as set forth on the applicable section of Schedule 2.18(c):

                  (i) each Employee Plan has been maintained and operated in
         substantial compliance with its terms and the requirements of
         applicable law, including the Code and ERISA; all required filings that
         are due for each such plan have been made; and any such plan that has
         terminated has completed the final distribution of its assets in
         accordance with its terms and such termination;

                                       13

<PAGE>

                  (ii) each Employee Plan intended to be "qualified" within the
         meaning of Section 401(a) or Section 501(c)(9) of the Code has received
         a favorable determination letter from the IRS (or timely filed for such
         determination); since the date of such determination letter, if any,
         there are, to the Seller's Knowledge, no circumstances that are likely
         to adversely affect the qualification of such plan; to Seller's
         Knowledge, there is no issue with respect to any such plan currently
         under examination by or pending before the IRS, the Department of
         Labor, the Pension Benefit Guaranty Corporation ("PBGC") or any court,
         other than applications pending before the IRS; and any trust forming
         part of such plan is exempt from U.S. federal income tax under Section
         501(a) of the Code;

                  (iii) all contributions (including all employee contributions
         and employee salary reduction contributions) and premium payments
         required to have been paid under or with respect to any Employee Plan
         have been timely paid; all contributions to such Employee Plans for any
         period ending on or prior to the Closing Date that are not yet due and
         payable have been accrued for in the books and records of the Company;
         all excess contributions, if any (together with any income allocable
         thereto) have been distributed (or, if forfeitable, forfeited) before
         the close of business of the first two and one-half months of the
         following plan year; and there is no material liability for excise
         Taxes under Section 4979 of the Code with respect to excess
         contributions, if any, for any such plan;

                  (iv) no Employee Plan provides health, life insurance or other
         welfare benefits to retirees or other terminated employees of the
         Company other than continuation coverage required by Section 4980B of
         the Code or Part 6 of Subtitle B of Title of ERISA ("COBRA") and
         Seller, the Company or their Affiliates, as applicable, has reserved
         the right to terminate any such postretirement health, life insurance
         or other welfare benefits upon thirty (30) days' notice or less without
         any material liability therefor and has taken no action, including,
         without limitation, adopting any board resolutions, that would
         contravene such reservation of rights; and there is no material
         liability for Taxes with respect to disqualified benefits under Section
         4976 of the Code;

                  (v) no Employee Plan is a multi-employer plan within the
         meaning of Section 3(37) or 4001 (a)(3) of ERISA which is covered by
         Title IV of ERISA, and the Company does not have any liability (direct
         or indirect, contingent or otherwise) with respect to any such plan;

                  (vi) within five calendar years preceding the year in which
         the Closing Date occurs, with respect to any "DEFINED BENEFIT PLAN",
         within the meaning of Section 3(35) of ERISA, maintained or contributed
         to by Seller, the Company or any entity treated as a single employer
         with Seller or the Company in accordance with Section 414(b) or (c) of
         the Code: (a) no such plan has been terminated and to Seller's
         Knowledge, no proceedings or other actions have been instituted by the
         PBGC to terminate or appoint a trustee to administer any such plan and
         no written notice has been received by Seller of any intention to
         commence or seek commencement of any such proceeding or action and
         there is no material liability for Taxes with respect to a reversion of
         qualified plan assets under Section 4980 of the Code; (b) no
         "reportable event" (as defined in Section 4043 of

                                       14

<PAGE>

         ERISA for which the thirty-day notice requirement has not been waived
         by the PBGC) has occurred with respect to any such plan or will occur
         as a result of the transactions contemplated by this Agreement, (c) no
         such plan has incurred any accumulated funding deficiency within the
         meaning of Section 412 of the Code or Section 302 of ERISA, or obtained
         a waiver of any minimum funding standard or an extension of any
         amortization period under Section 412 of the Code or Section 303 or 304
         of ERISA; and (d) there is no material liability for Taxes under
         Section 4971 or 4972 of the Code with respect to any such plan;

                  (vii) the assets under each Employee Plan which is an
         "employee pension benefit plan" within the meaning of Section 3(2) of
         ERISA that is subject to the minimum funding standards of Section 412
         of the Code or Section 302 of ERISA equal or exceed the present value
         of all vested and unvested liabilities accrued thereunder, as
         determined in accordance with the terms of such plan; provided,
         however, that the calculations (including all variables and assumptions
         necessary to make such calculations) made under this Section
         2.18(c)(vii) shall be determined as of December 31, 2002, on an ABO
         basis in accordance with the assumptions specified in FASB 87 and used
         for Seller's disclosure statements filed (or to be filed) with the
         Securities and Exchange Commission for the year ended December 31,
         2002, shall use a discount rate of 7.0% and shall otherwise be mutually
         agreed to by Seller and Buyer (or their designated representatives);

                  (viii) no Employee Plan is subject to Title IV of ERISA and
         there is no liability of the Company for Taxes with respect to
         disqualified benefits under Section 4976 of the Code;

                  (ix) none of Seller, the Company nor any of their
         subsidiaries, nor, to Seller's Knowledge, any other "Disqualified
         Persons" or "Party in Interest" (as defined in Section 4975(e)(2) of
         the Code and Section 3(14) of ERISA, respectively) has engaged in any
         transactions (including prohibited transactions as defined in Section
         406 of ERISA) in connection with any Employee Plan that could
         reasonably be expected to result in the imposition of a penalty
         pursuant to Section 502 of ERISA, liability pursuant to Section 409 of
         ERISA or a tax pursuant to Section 4975 of the Code; and

                  (x) (A) there are no actions, suits, or claims (other than
         routine claims for benefits in the ordinary course and appeals of
         denied such claims) with respect to any Employee Plan pending which
         could give rise to a material liability and (B) no Employee Plan is
         currently under governmental investigation or audit and, to Seller's
         Knowledge, no such investigation or audit is contemplated or under
         consideration.

         (d) Except as set forth on Schedule 2.18(d), no Business Employees are
covered by a collective bargaining agreement. Seller or the Company has
delivered to Buyer a complete and correct copy of any collective bargaining
agreement applicable to Business Employees. Notwithstanding anything contained
in any such collective bargaining agreement to the contrary, and consistent with
past practices, the Company may amend or terminate any Employee Plan without
negotiating with the applicable union. Except as set forth in Schedule 2.18(d),
or except as would not, individually or in the aggregate, be reasonably likely
to have a Material Adverse Effect, there is no strike, work slowdown or other
material labor dispute with respect to Business

                                       15

<PAGE>

Employees, nor to Seller's Knowledge, is there pending or threatened (i) any
strike, work slowdown or other material labor dispute involving Business
Employees or (ii) any grievance or arbitration proceeding involving Business
Employees, whether arising out of any collective bargaining agreement or
otherwise.

                  SECTION 2.19. INSURANCE.

         (a) Schedule 2.19 sets forth a correct summary of each current policy
of all material property, material casualty and other material insurance
insuring the properties, assets, employees (other than policies related to
Employee Plans), directors and officers and/or operations of the Company
(collectively, the "POLICIES"). All premiums payable under such Policies have
been paid in a timely manner and the Company has complied with the terms and
conditions of all such Policies.

         (b) All Policies are in full force and effect. Coverage for the Company
under the Policies or the May 1, 2003 renewals thereof shall terminate on the
Closing Date except to the extent provided in Section 4.11(b). The Company is
not in default under any provisions of the Policies, and there is no claim by
the Company pending under any of the Policies as to which coverage has been
questioned, denied or disputed by the underwriters or issuers of such Policies.

                  SECTION 2.20. ENVIRONMENTAL; HEALTH AND SAFETY MATTERS.

         (a) Except as set forth on Schedule 2.20:

                           (i) the Company and its operations are in material
         compliance with all applicable Environmental Laws;

                           (ii) neither Seller nor the Company has received any
         written request for information, nor has any of such Persons received
         written notification that it is a potentially responsible party, under
         CERCLA or any similar state law with respect to any on-site or off-site
         location with respect to the activities or operations of the Company;

                           (iii) there are no writs, injunctions, decrees,
         orders or judgments outstanding, or any judicial, administrative, or
         arbitral actions, suits, proceedings (public or private) or
         investigations pending or, to Seller's Knowledge, threatened involving
         the Company relating to (A) its compliance with any Environmental Law,
         or (B) the release, disposal, discharge, spill, treatment, storage,
         transport, or recycling of Hazardous Materials into the environment at
         any location which, in the case of clauses (A) and (B) above,
         individually or in the aggregate, could reasonably be expected to
         result in the Company incurring any material liability under
         Environmental Laws;

                           (iv) the Company has obtained, currently maintains
         and is in material compliance with all Licenses which are required
         under Environmental Laws for the operation of its business
         (collectively, "ENVIRONMENTAL PERMITS"), all such Environmental Permits
         are in effect and no appeal nor any other action is pending to revoke
         any such Environmental Permit; and

                                       16

<PAGE>

                           (v) To Seller's Knowledge, no underground tank (as
         that term is used in the Resources Conservation and Recovery Act, 42
         U.S.C. Section 6991(1)), either presently or previously in service on
         any of the properties owned or leased by the Company, has ever
         contained or now contains any Hazardous Materials.

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

                  "ENVIRONMENTAL LAW" shall mean 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, including, without limitation, the Comprehensive Environmental
Response Compensation and Liability Act (42 U.S.C. section 9601 et seq.), as
amended, the Resource Conservation and Recovery Act (42 U.S.C. section 6901 et
seq.), as amended, 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 Hazardous Materials Transportation Act (49 U.S.C., sections
1801, et seq.), as amended, the Oil Pollution Act (33 U.S.C. sections 2701, et
seq.), the Safe Drinking Water Act (42 U.S.C. sections 300(f) et seq.), as
amended, the Endangered Species Act (16 U.S.C. sections 1531, et seq.), as
amended, the National Environmental Policy Act (42 U.S.C. sections 4321 et
seq.), as amended, analogous state, tribal or local laws, and any similar,
implementing or successor law, and any amendment, rule, regulation, directive or
other legal obligation 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.

         (c) Except for the representation and warranty set forth in the second
sentence of Section 2.8, the only representations and warranties given in
respect of environmental matters and compliance with and liability under
Environmental Laws are those contained in this Section 2.20 and none of the
other representations and warranties shall be deemed to constitute, directly or
indirectly, a representation and warranty in respect of environmental matters or
compliance with and liability under Environmental Laws.

                  SECTION 2.21. REGULATORY MATTERS.

         The Company is a "Natural Gas Company" as that term is defined in
Section 2 of the Natural Gas Act ("NGA"). The Company is not 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"). Except for the matter described in Item E.6. of Schedule 2.15, the
Company is in material compliance with (x) all provisions of the NGA and all
rules and regulations promulgated by FERC pursuant thereto and (y) all orders
issued by FERC that pertain to the business or operations of the Company. No
approval of (i) the Securities and Exchange Commission under the 1935 Act or
(ii) FERC under the NGA or the Federal Power Act is required in connection with
the execution of this Agreement by Seller or the consummation of the
transactions contemplated hereby with respect to Seller or the Company. The Form
No. 2 Annual Report filed by the Company with FERC for the year ended

                                       17

<PAGE>

December 31, 2001 was, and when filed the Form 2 Annual Report of the Company
for the year ended December 31, 2002 will be, true and correct in all material
respects as of the date thereof and since December 31, 2002 none of the Company,
TGT Sub or the LLC has become subject to any proceeding under Section 5 of the
NGA or any general rate case proceeding commenced under Section 4 of the NGA by
reason of a filing made with the FERC after December 31, 2002.

                  SECTION 2.22. CUSTOMERS.

         Schedule 2.22 sets forth a complete and accurate list of the
twenty-five (25) largest (by dollar volume) customers of the Company during
fiscal year 2002. Except as set forth on Schedule 2.22, there are no outstanding
and unresolved material disputes with any customer listed thereon.

                  SECTION 2.23. NO OTHER REPRESENTATIONS.

         Except as and to the extent set forth in this Agreement, Seller makes
no representations or warranties whatsoever to Buyer and hereby disclaims all
liability and responsibility for any representation, warranty, statement, or
information made, communicated, or furnished (orally or in writing) to Buyer or
its representatives (including any opinion, information, projection, or advice
that may have been or may be provided to Buyer by any director, officer,
employee, agent, consultant, or representative of Seller or any Affiliate
thereof). Seller makes no representations or warranties to Buyer regarding the
probable success or profitability of the Company or its business.

                                  ARTICLE III.
                     REPRESENTATIONS AND WARRANTIES OF BUYER

                  As of the date hereof, Buyer hereby represents and warrants to
Seller as follows:

                  SECTION 3.1. CORPORATE ORGANIZATION.

         Buyer is a corporation duly organized, 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. Buyer is duly qualified to do business as a foreign entity in every
jurisdiction where the character of the properties owned or leased by it or the
nature of the business conducted by it makes such qualifications necessary.

                  SECTION 3.2. VALIDITY OF AGREEMENT.

         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 Buyer's obligations hereunder have been duly authorized by the
Board of Directors of Buyer, and no other proceedings on the part of Buyer are
necessary to authorize such execution, delivery and performance. This Agreement
has been duly executed by Buyer and constitutes the valid and binding obligation
of Buyer enforceable against 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).

                                       18

<PAGE>

                  SECTION 3.3. NO CONFLICT OR VIOLATION; NO DEFAULTS.

         The execution, delivery and performance by 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 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, net income or
financial condition of Buyer.

                  SECTION 3.4. CONSENTS AND APPROVALS.

         Except as disclosed on Schedule 3.4, no material consent, approval or
authorization of, or filing, registration or qualification with, any
Governmental Authority or any other person (on the part of Buyer), is required
as a condition to the execution and delivery of this Agreement or the
performance of its obligations hereunder.

                  SECTION 3.5. FINANCIAL ABILITY.

         At the Closing, Buyer will have sufficient immediately available funds,
in cash, to pay the Estimated Purchase Price under Section 1.2 and to pay any
other amounts payable under Article I.

                  SECTION 3.6. BROKERS.

         Except as disclosed on Schedule 3.6, Buyer has not employed the
services of an investment banker, financial advisor, broker or finder in
connection with this Agreement or any of the transactions contemplated hereby.

                  SECTION 3.7. INDEPENDENT INVESTIGATION.

         Buyer has conducted its own independent investigation, review and
analysis of the business, operations, assets, liabilities, results of
operations, financial condition and prospects of the Company, which
investigation, review and analysis was done by Buyer and its Affiliates and, to
the extent Buyer deemed necessary or appropriate, by Buyer's representatives.
Buyer acknowledges that it and its representatives have been provided adequate
access to the personnel, properties, premises and records of the Company for
such purpose. In entering into this Agreement, Buyer acknowledges that it has
relied solely upon the aforementioned investigation, review and analysis and not
on any factual representations of Seller or any of Seller's representatives
(except the specific representations and warranties of Seller set forth in this
Agreement). Notwithstanding anything herein to the contrary, the foregoing shall
not be construed to diminish or adversely affect the rights of Buyer under this
Agreement.

                                       19

<PAGE>

                  SECTION 3.8. INVESTMENT INTENT; INVESTMENT EXPERIENCE;
RESTRICTED SECURITIES.

         Buyer is acquiring the Shares for its own account for investment and
not with a view to, or for sale or other disposition in connection with, any
distribution of all or any part thereof in violation of federal or state
securities laws. In acquiring the Shares, Buyer is not offering or selling, and
will not offer or sell, for Seller in connection with any distribution of the
Shares, and Buyer does not have a participation and will not participate in any
such undertaking or in any underwriting of such an undertaking except in
compliance with applicable federal and state securities laws. Buyer acknowledges
that it is able to fend for itself, can bear the economic risk of its investment
in the Shares, and has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of an investment
in the Shares. Buyer is an "accredited investor" as such term is defined in
Regulation D under the Securities Act of 1933, as amended (the "SECURITIES
ACT"). Buyer understands that the Shares will not have been registered pursuant
to the Securities Act or any applicable state securities laws, that the Shares
will be constituted as "restricted securities" under federal securities laws and
that under such laws and applicable regulations the Shares cannot be sold or
otherwise disposed of without registration under the Securities Act or an
exemption therefrom.

                                   ARTICLE IV.
                                    COVENANTS

                  SECTION 4.1. CERTAIN CHANGES AND CONDUCT OF BUSINESS.

         (a) From and after the date of this Agreement and until the Closing
Date, Seller will cause the Company to (except as required or permitted pursuant
to the terms hereof or as set forth on Schedule 4.1) conduct its business solely
in the ordinary course consistent with past practices and to use all reasonable
commercial efforts to preserve intact its present business organization, keep
available the services of its present officers and employees and preserve its
relationships and good will with suppliers, customers, creditors, employees,
agents and others having business relationships with the Company. From and after
the date of this Agreement and until the Closing Date, without the prior written
consent of Buyer (which consent will not be unreasonably withheld or delayed),
Seller will not, except as required or permitted pursuant to the terms hereof or
as set forth on Schedule 4.1, permit the Company to:

                  (i) make any change in its Organizational Documents or issue
         any additional equity securities or grant any option, warrant or right
         to acquire any equity securities or issue any security convertible into
         or exchangeable for its equity securities;

                  (ii) (A) incur, assume or guarantee any indebtedness for
         borrowed money, issue any notes, bonds, debentures or other corporate
         securities or grant any option, warrant or right to purchase any
         thereof (including any issuance of additional debt securities pursuant
         to the Company's shelf registration statement) or (B) issue any
         securities convertible or exchangeable for debt securities of the
         Company, TGT Sub or the LLC;

                  (iii) make any sale, assignment, transfer, abandonment or
         other conveyance of any assets or properties or any part thereof having
         an aggregate value in excess of

                                       20

<PAGE>

         $250,000.00, except (A) sales of capacity on the pipeline system or in
         the storage properties of the Company made in the ordinary course of
         business consistent with past practices or (B) under Section 4.17;

                  (iv) subject any of its assets, or any part thereof, to any
         Encumbrance except Permitted Encumbrances;

                  (v) redeem, retire, purchase or otherwise acquire, directly or
         indirectly, any of its equity interests or (except as permitted
         pursuant to Section 1.3(d) and subsection (b) below) declare, set aside
         or pay any dividends or other distribution in respect of such equity
         interests in excess of the cash and cash equivalents and advances
         reflected on the Base Statement;

                  (vi) (A) except as may be required by applicable law or except
         to the extent consistent with amendments or modifications made to
         similar plans or arrangements of Seller or its corporate parent that,
         in the aggregate, do not result in a material increase in benefits or
         compensation expenses to the Company, enter into, adopt or make any
         material amendments to, permit the acceleration of benefits under or
         terminate any bonus, profit sharing, compensation, severance,
         termination, stock option, stock appreciation right, restricted stock,
         performance unit, stock equivalent, stock purchase, pension,
         retirement, deferred compensation, employment, severance or other
         employee benefit agreement, trust, plan, fund or other arrangement for
         the benefit or welfare of any current or former director, officer or
         employee of the Company; (B) except for normal increases in the
         ordinary course of business consistent with past practice that, in the
         aggregate, do not result in a material increase in benefits or
         compensation expense to the Company, increase the benefits or
         compensation to any current or former director, officer, or employee of
         the Company; or (C) pay to any current or former director, officer, or
         employee of the Company any benefit not permitted by any employee
         benefit agreement, trust, plan, fund, or other arrangement as in effect
         on the date hereof;

                  (vii) acquire any assets or properties, except for (A)
         inventory in the ordinary course of business consistent with past
         practices, (B) budgeted capital expenditures described on Schedule
         4.1(a)(vii), and (C) any acquisitions of assets or properties with a
         fair market value of up to $250,000.00 in the aggregate;

                  (viii) except in the ordinary course of business consistent
         with past practices (including any sweep by Seller of the cash in the
         accounts of the Company, the LLC, and TGT Sub prior to Closing), pay,
         loan, distribute or advance any amount to, or sell, transfer or lease
         any properties or assets to, or enter into any agreement or arrangement
         with, any of its Affiliates;

                  (ix) make any loan or investment in any Person;

                  (x) make any change in any financial accounting principle,
         method, estimate or practice, except as may be required by law or
         regulation;

                  (xi) make, amend or revoke any material election with respect
         to Taxes of the Company or any of its assets;

                                       21

<PAGE>

                  (xii) other than routine compliance filings, make any filings
         or submit any documents or information to FERC or any other
         Governmental Authority without prior consultation with Buyer;

                  (xiii) enter into any agreement (or series of related
         agreements) or amendment, modification, or termination of any contract,
         lease, or license to which the Company is a party, or by which any of
         its assets or properties are bound, except an agreement (or series of
         related agreements taken as one) or an amendment, modification or
         termination of a contract, lease or license entered into in the
         ordinary course of business consistent with past practice that would
         not have been considered to have been a Material Contract had it been
         entered into prior to the date of this Agreement;

                  (xiv) cancel, compromise, waive, release or settle any right,
         claim or lawsuit, other than rights, claims or lawsuits (A) with
         respect to matters subject to the Seller's indemnity obligation in
         Section 8.2(a)(iv) or Section 8.2(a)(v) provided that the sole relief
         provided is monetary damages or (B) in the ordinary course of business
         to the extent that the amount involved or required to be paid under (I)
         any such single cancellation, compromise, waiver, release or settlement
         does not exceed $100,000.00 or (II) all such cancellations,
         compromises, waivers, releases or settlements do not exceed $250,000.00
         in the aggregate;

                  (xv) terminate, initiate proceedings to terminate or appoint a
         trustee to administer any plan described in Section 2.18(c)(vi);

                  (xvi) submit an invoice for payment of, or otherwise collect
         payment of, any amounts due under the contract described in Item 2 of
         Schedule 2.16(e); and

                  (xvii) commit itself to do any of the foregoing.

         (b) Prior to Closing, Seller shall cause the Company to distribute or
transfer to Seller or its Affiliates all ownership interests in the Retained
Entities. From and after the date of this Agreement, until the distribution or
transfer of the Company's ownership interests in the Retained Entities to Seller
or its Affiliates, Seller will not permit any of the Retained Entities to engage
in any activity, conduct any operations or incur any liabilities or obligations
of any kind whatsoever.

                  SECTION 4.2. ACCESS TO PROPERTIES AND RECORDS.

         (a) Seller shall afford, and shall cause the Company and Seller's other
Affiliates to afford, to Buyer and Buyer's accountants, counsel and
representatives upon reasonable advance notice reasonable access during normal
business hours throughout the period commencing on the date hereof and ending on
the Closing Date (or the earlier termination of this Agreement pursuant to
Article VII hereof) to all the Company's properties, books, contracts, and
records and, during such period, shall furnish promptly to Buyer all information
concerning the Company's business, properties, liabilities and personnel as
Buyer may reasonably request. Additionally, Buyer shall hold in confidence all
such information on the terms and subject to the conditions contained in the
Confidentiality Agreement. Buyer shall have no right of access to, and Seller
shall have no obligation to provide to Buyer, (1) bids received from others in

                                       22

<PAGE>

connection with the transactions contemplated by this Agreement and information
and analysis (including financial analysis) relating to such bids or (2) any
information the disclosure of which Seller has reasonably concluded after
consultation with counsel may jeopardize any privilege available to the Company
or Seller relating to such information or would cause the Company or Seller to
breach a confidentiality obligation or any applicable law. Buyer agrees that if
Buyer or its authorized representatives receive, or if the information (whether
in electronic mail format, on computer hard drives or otherwise) held by the
Company as of the Closing includes information that relates to the business
operations or other strategic matters of Seller, its corporate parent or any of
their Affiliates (other than the Company) such information shall be held in
confidence on the terms and subject to the conditions contained in the
Confidentiality Agreement, but the term of the restriction on the disclosure and
use of such information shall continue in effect as to such information for a
period of two (2) years from the Closing. Buyer further agrees that if Seller or
the Company inadvertently furnishes to Buyer copies of or access to information
that is subject to clause (2) of the second preceding sentence, Buyer will, upon
Seller's request, promptly return same to Seller together with any and all
extracts therefrom or notes pertaining thereto (whether in electronic or other
format). Buyer shall indemnify, defend, and hold harmless Seller and its
Affiliates from and against any Losses asserted against or suffered by Seller
Indemnified Parties relating to, resulting from, or arising out of, examinations
or inspections made by Buyer or its authorized representatives under this
Section 4.2(a).

         (b) Upon the reasonable request by Buyer from time to time prior to
Closing, Seller shall allow Buyer to have reasonable access to the Company and
its management. Such access shall be provided in a mutually agreed upon manner,
in accordance with such policies as the parties may mutually agree and in
accordance with all guidelines, guidances or legal counsel regarding the
appropriate manner in which to conduct such pre-Closing activities.
Notwithstanding anything herein to the contrary, Buyer, on the one hand, and
Seller and the Company, on the other hand, will continue to operate as
independent companies prior to Closing.

         (c) Each of the parties agrees that it shall preserve and keep, and
make available to the other party for reasonable business needs, all books and
records relating to the business or operations of the Company on or before the
Closing Date in its possession (including with respect to Seller, to the extent
in its possession, the most recent rate case records and files of the Company
and all of the records and files of the Company and Seller necessary for the
Company to make a future rate case filing with the FERC) for a period of at
least 6 years from the Closing Date. After such 6-year period, before a party
may dispose of any of such books and records, at least 90 calendar days prior
notice to such effect shall be given to the other party, and such other party
shall be given an opportunity, at its cost and expense, to remove and retain all
or any part of such books and records that the notifying party elects to dispose
of. Notwithstanding the foregoing, each party agrees that it shall preserve and
keep all books and records of the Company, TGT Sub and the LLC in its possession
relating to any audit or investigation instituted by a Governmental Authority or
any litigation (whether or not existing on the Closing Date), in each case of
which it has actual knowledge, until any such audit, investigation or proceeding
has been completed or finally resolved (and became non-appealable), if it is
reasonably likely that such audit investigation or litigation may relate to
matters occurring prior to the Closing, without regard to the 6-year period set
forth in this Section 4.2(c).

                                       23

<PAGE>

                  SECTION 4.3. EMPLOYEE MATTERS.

         (a) Within fifteen (15) days after the execution of this Agreement,
representatives of Buyer and Seller shall meet to identify employees of Seller
or any of its Affiliates who are not Business Employees and to whom Buyer and
Seller agree that Buyer, the Company or any Affiliate of Buyer may make offers
of employment (collectively, the "AVAILABLE EMPLOYEES"). Buyer, the Company or
any other Affiliate of Buyer may offer employment effective as of the Closing
Date to each Available Employee, any such offers of employment made by the Buyer
to an Available Employee shall be made in accordance with subsection (n) below.
Buyer shall notify Seller of the names of those Available Employees that
accepted such employment offers from Buyer, the Company, or any other Affiliate
of Buyer (the "ADDITIONAL EMPLOYEES") no later than ten (10) days prior to the
Closing Date. Additional Employees and all of the Business Employees shall be
referred to as "TRANSFERRED EMPLOYEES." Prior to Closing, Buyer shall not
initiate any contact with any of the employees of Seller and its Affiliates
except for Business Employees and Available Employees. After the date hereof and
prior to Closing, Seller shall afford, and shall cause the Company and its
Affiliates to afford, to Buyer or its Affiliates reasonable access to the
Available Employees for the purpose of enabling Buyer and its Affiliates to
determine to which of such employees it desires to extend offers of employment.

         (b) Effective as of the Closing Date, Seller or its Affiliates shall
take, or shall cause the Company to take, all necessary action to effect the
cessation of, and withdrawal from, participation by the Company in any Employee
Plans which are not sponsored or maintained by the Company solely for the
benefit of eligible Business Employees (and, if applicable, their eligible
dependents and beneficiaries).

         (c) On or as soon as practicable after the Closing Date, Seller shall
cause to be transferred from The Williams Companies, Inc. Master Trust to a
trust established or maintained by the Buyer, the Company or another Affiliate
of Buyer an amount of cash equal to the fair market value of the assets
attributable to the Texas Gas Retirement Plan as of the Closing Date. If the
amount transferred to Buyer is less than $93,778,415, then Seller shall promptly
pay to Buyer in cash the amount of such shortfall less Seller's and its
Affiliates' transaction costs to convert non-cash assets to cash.

         (d) On or as soon as practicable after the Closing Date, provided that
Treasury Regulation 1.414(l)-1(h) is satisfied under the de minimis rule, Seller
shall cause to be transferred from the trust(s) of any "employee pension benefit
plan(s)" within the meaning of Section 3(2) of ERISA, which is qualified under
Section 401(a) of the Code, covering any Additional Employees to a trust
maintained by Buyer, the Company or another Affiliate of Buyer contemplated in
the foregoing paragraph, an amount of cash equal to the greater of (A) the
Projected Benefit Obligation ("PBO" ) reflected in Seller's or its applicable
Affiliate's audited financial statements as of December 31, 2002 for such
Additional Employees, and (B) the amount required to be transferred, if any,
under section 414(l) of the Code as reasonably determined by Seller's or its
applicable Affiliate's enrolled actuary and agreed to by Buyer's enrolled
actuary. The determination of such PBO shall be in accordance with the actuarial
assumptions used to determine Seller's or its applicable Affiliate's December
31, 2002 PBO in total, as such is disclosed in such entity's audited financial
statements. If the de minimus rule in Treasury Regulation 1.414(1)-1(h) is not
satisfied, then at Buyer's sole election, Seller shall either (i) transfer the
maximum amount of cash permitted to be transferred for any affected Additional
Employee pursuant to such Treasury Regulation, or (ii) retain the assets and
related

                                       24

<PAGE>

benefits accrued through the Closing Date with respect to such Additional
Employee. For any transfer(s) made to Buyer in accordance with this subsection
(d), from and after the date of such transfer(s), the Texas Gas Retirement Plan
shall be responsible for the benefits accrued through the Closing Date with
respect to such Additional Employees.

         (e) Effective as of the Closing Date, Buyer shall assume, or shall
cause the Company or another Affiliate of Buyer to assume, Seller's obligation
for providing severance to former employees of the Company and for providing
retiree medical and retiree life benefits to Retiree Plan Participants (and
their eligible dependents) under the Employee Plans set forth in Schedule
2.18(a), in each case, to the extent accrued on the books of the Company as of
December 31, 2002 or reflected as a current liability on the Final Closing
Statement. On or as soon as practicable after the Closing Date, Seller shall
cause to be transferred from the Transco Energy Company Master Employee Welfare
Benefit Trust to a VEBA trust established or maintained by Buyer, the Company or
another Affiliate of Buyer an amount of cash equal to the fair market value as
of the Closing Date of the assets attributable to providing retiree medical
benefits and/or life benefits to Retiree Plan Participants. If the amount
transferred to Buyer from such trust is less than $60,788,820, then Seller shall
promptly pay to a VEBA trust established or maintained by Buyer in cash the
amount of such shortfall less Seller's and its Affiliates' transaction costs to
convert non-cash assets to cash.

         (f) With respect to Additional Employees, effective as of the date of
hire, Buyer shall assume, or shall cause the Company or another Affiliate of
Buyer to assume, Seller's or its applicable Affiliate's obligation for providing
retiree medical and retiree life benefits to such employees if such employees
have met the eligibility requirements for participation in any employee plan
sponsored or maintained by Seller or the applicable Affiliate that provides
health, life insurance or other welfare benefits to retirees. On or as soon as
practicable after the date of hire of those Additional Employees for whom Seller
maintains an account in Seller's VEBA trust, Seller shall cause to be
transferred from the Seller's VEBA trust to a VEBA trust established or
maintained by Buyer, the Company, or another Affiliate of Buyer an amount of
cash equal to the Accumulated Post-retirement Benefit Obligations as of December
31, 2002 reflected in Seller's or its applicable Affiliate's audited financial
statements as of such date for such Additional Employees.

         (g) Effective as of the Closing Date, Buyer shall assume, or shall
cause the Company or another Affiliate of Buyer to assume, Seller's obligation
for providing long-term disability benefits to the Business Employees as well as
to those former employees of the Company, who, immediately prior to the Closing
Date, are totally disabled, and therefore receiving benefits under The Williams
Companies, Inc. Long-Term Disability Plan to the extent accrued on the books of
the Company as of December 31, 2002 or reflected as a current liability on the
Final Closing Statement. In addition, effective as of the Closing Date, Buyer
shall assume, or cause the Company or another Affiliate of Buyer to assume,
Seller's obligation for providing medical, dental, vision and life insurance
benefits to such Business Employees and former employees of the Company
(including their eligible dependents and beneficiaries) who, immediately prior
to the Closing Date, are totally disabled, and therefore receiving benefits
under The Williams Companies, Inc. Long-Term Disability Plan to the extent
accrued on the books of the Company as of December 31, 2002 or reflected as a
current liability on the Final Closing Statement.

                                       25

<PAGE>

         (h) Effective as of the Closing Date, Transferred Employees shall
become fully vested in their account balances in any defined contribution or
401(k) Plan maintained by Seller on behalf of such Transferred Employees (the
"SELLER SAVINGS PLAN") and distributions of such account balances shall be made
available to such Transferred Employees as soon as practicable following the
Closing Date, in accordance with, the provisions of Seller Savings Plan and
applicable law. Thereafter, Buyer shall accept or shall cause the Company or the
appropriate Affiliate of Buyer to accept, eligible rollover contributions from
Seller Savings Plan into a defined contribution or 401(k) Plan maintained by
Buyer, the Company or another Affiliate of Buyer (the "BUYER SAVINGS PLAN") of
the account balances distributed to the Transferred Employees from the Seller
Savings Plan in accordance with the provisions of the Buyer Savings Plan and
applicable law. Such eligible rollovers shall be made in cash.

         (i) Seller or the appropriate Affiliate of Seller shall be responsible
for any continuation of group health coverage required under Section 4980B of
the Code or Sections 601 through 608 of ERISA with respect to any Business
Employee or any "QUALIFIED BENEFICIARY" (as defined in Section 4980B of the
Code) of any such employee who incurs a "QUALIFYING EVENT" (as defined in
Section 4980B of the Code) on or prior to the Closing Date. Buyer, the Company
or the appropriate Affiliate of Buyer shall be responsible for any continuation
of group health coverage required under Section 4980B of the Code or Sections
601 through 608 of ERISA with respect to any Transferred Employee or any
"QUALIFIED BENEFICIARY" (as defined in Section 49808 of the Code) who incurs a
"QUALIFYING EVENT" (as defined in Section 4980B of the Code) after the Closing
Date.

         (j) Buyer shall assume, or shall cause the Company or another Affiliate
of Buyer to assume, all paid-time-off obligations of Seller or its Affiliates
with respect to each Transferred Employee to the extent reflected as a current
liability and included in Working Capital on the Final Closing Statement.

         (k) Seller shall retain no liability, obligation or responsibility for,
and Buyer shall assume, or shall cause the Company or another Affiliate of Buyer
to assume, the full liability, obligation and responsibility to pay, any portion
of any bonus or incentive plan benefit for year 2003 with respect to any former
employees of the Company or any Business Employee or Additional Employee to the
extent reflected as a current liability and included in Working Capital on the
Final Closing Statement. Seller shall retain no liability, obligation or
responsibility for, and Buyer shall assume, or shall cause the Company or
another Affiliate of Buyer to assume, the full liability, obligation and
responsibility to pay, any portion of any bonus or incentive plan benefit for
the year 2002, accrued but not yet paid, with respect to any former employees of
the Company or any Business Employee or Additional Employee to the extent
reflected as a current liability and included in Working Capital on the Final
Closing Statement.

         (l) For a period of one (1) year after the Closing Date:

                  (i) neither the Buyer nor any of its Affiliates that engage in
         the business of the transportation of hydrocarbons shall, directly or
         indirectly, induce any employee of Seller or any of its Affiliates
         (other than the Transferred Employees) to leave the employ of Seller or
         any of its Affiliates or employ or otherwise engage or retain (as an
         independent contractor, consultant or otherwise) any such employee,
         except that Buyer and its

                                       26

<PAGE>

         Affiliates shall not be precluded from hiring any such employee who (y)
         initiates discussions regarding such employment without any direct or
         indirect solicitation by Buyer or its Affiliates or (z) responds to any
         public advertisement placed by Buyer or its Affiliates; and

                  (ii) neither Seller nor any of its Affiliates shall, directly
         or indirectly, induce any of the Transferred Employees to leave the
         employ of Buyer or any of its Affiliates that engages in the business
         of the transportation of hydrocarbons or employ or otherwise engage or
         retain (as an independent contractor, consultant or otherwise) any such
         Transferred Employee, except that Seller and its Affiliates shall not
         be precluded from hiring any such employee who (y) initiates
         discussions regarding such employment without any direct or indirect
         solicitation by Seller or its Affiliates or (z) responds to any public
         advertisement placed by Seller or its Affiliates.

         (m) As of the Closing Date, Buyer agrees to cause the Company's
cafeteria plan established pursuant to subsection (o) below (the "BUYER'S 125
PLAN") to accept a spin-off of the flexible spending reimbursement accounts from
the Seller's cafeteria plan in which Transferred Employees participated as of
the Closing (the "SELLER'S 125 PLAN") and to honor and continue through the end
of the calendar year in which the Closing Date occurs the elections made by each
Transferred Employee under the Seller's 125 Plan in respect of the flexible
spending reimbursement accounts that are in effect immediately prior to the
Closing Date. As soon as practicable following the Closing Date, Seller shall
cause to be transferred to Buyer an amount in cash equal to the excess of the
aggregate accumulated contributions to the flexible spending reimbursement
accounts made during the year in which the Closing Date occurs by the
Transferred Employees over the aggregate reimbursement payouts made for such
year from such accounts to the Transferred Employees. If the aggregate
reimbursement payouts made to a Transferred Employee prior to Closing from the
flexible reimbursement account of such employee in the Seller's 125 Plan during
the year in which the Closing Date occurs exceeds the aggregate accumulated
contributions to such account prior to Closing for such year by such employee,
Buyer shall cause such excess to be transferred to Seller as soon as
practicable, and solely to the extent of, the receipt of contributions from such
employee to Buyer's 125 Plan. On and after the Closing Date, Buyer shall assume
and be solely responsible for all reimbursable claims by the Transferred
Employees under the Seller's 125 Plan, whether incurred prior to, on or after
the Closing Date, that have not been paid in full as of the Closing Date.

         (n) Except for Business Employees covered under a collective bargaining
agreement, until at least December 31, 2003, Buyer shall provide or cause to be
provided to all Transferred Employees a salary or wage level at least equal to
90% of the salary or wage level to which they were entitled immediately prior to
the Closing Date and bonus opportunity at least equal to 90% of the bonus
opportunity to which they were entitled immediately prior to the Closing Date;
provided, however, that nothing contained in this Section 4.3(n) shall affect
Buyer's right to terminate any Transferred Employee for cause.

         (o) Prior to the Closing, Buyer and Seller shall each use its
commercially reasonable efforts to take all reasonably necessary actions, in a
timely manner, to enable Buyer to establish welfare plans for the Company
essentially identical to the Employee Plans listed as items 1-12 on Schedule
2.18(a) with such conforming and other changes to reflect the change in
ownership

                                       27

<PAGE>

of the Company as a result of the transactions contemplated hereunder and the
transition of benefits to such plans (the "MIRROR PLANS"). Buyer and Seller
agree to otherwise cooperate as necessary to effectuate the provisions of this
Section 4.3 and to ensure an orderly transition of payroll and benefits coverage
with respect to the Transferred Employees from the Employee Plans to the
appropriate Mirror Plans, including without limitation, (i) the administrative
and processing services to be provided by Seller to Buyer pursuant to the
Transition Services Agreement, and (ii) causing the Company to establish one or
more bank accounts for the payroll of the Transferred Employees. (p) Prior to
the Closing Date, Seller shall provide a list to Buyer of (i) the names of all
retirees of the Company currently receiving benefits under any Employee Plan and
any Transferred Employees and former employees of the Company who have met the
requirements for a vested or deferred vested pension in such plans
(collectively, the "RETIREE PLAN PARTICIPANTS"); (ii) any survivors of employees
who died in active employment or who are on disability that are entitled to
benefits under any Employee Plan; and (iii) target bonus for 2003 for each
Transferred Employee.

                  SECTION 4.4. CONSENTS AND APPROVALS.

         Seller and Buyer each shall use all commercially reasonable efforts to
obtain, or in the case of Seller, cause the Company to obtain, all necessary
consents, waivers, authorizations and approvals of all Governmental Authorities,
and of all other Persons required in connection with the execution, delivery and
performance by them of this Agreement and will cooperate fully with the other
party in promptly seeking to obtain all such authorizations, consents, orders,
and approvals, giving such notices, and making such filings. To the extent
required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the "HSR
ACT"), each party shall (i) file or cause to be filed, as promptly as
practicable but in no event later than five business days after the execution
and delivery of this Agreement, with the Federal Trade Commission and the United
States Department of Justice, all reports and other documents required to be
filed by such party under the HSR Act concerning the transactions contemplated
hereby and (ii) promptly comply with or cause to be complied with any requests
by the Federal Trade Commission or the United States Department of Justice for
additional information concerning such transactions, in each case so that the
waiting period applicable to this Agreement and the transactions contemplated
hereby under the HSR Act shall expire as soon as practicable after the execution
and delivery of this Agreement. Each party agrees to request, and to cooperate
with the other party in requesting, early termination of any applicable waiting
period under the HSR Act.

                  SECTION 4.5. FURTHER ASSURANCES.

         Upon the request of Buyer at any time after the Closing Date, 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 to perfect title of Buyer and its successors and assigns to
the Shares or otherwise to effectuate the purposes of this Agreement.

                                       28

<PAGE>

                  SECTION 4.6. REASONABLE EFFORTS.

         Upon the terms and subject to the conditions of this Agreement, each of
the parties hereto will use all commercially reasonable efforts to take, or
cause to be taken, all action, and to do, or cause to be done, all things
necessary, proper or advisable consistent with applicable law to consummate and
make effective in the most expeditious manner practicable the transactions
contemplated hereby.

                  SECTION 4.7. DISCLOSURE SCHEDULE UPDATES

         (a) Seller shall have the right, until five (5) business days prior to
the Closing, to supplement the Disclosure Schedules with respect to any matter
or matters arising before the date hereof which would have been required to be
set forth on or described in the Disclosure Schedules as of the execution date
hereof that relate to the representations and warranties in Article II (other
than the last sentence of Section 2.8) (an "EXECUTION UPDATE"). Any such
Execution Update furnished to Buyer will not be deemed to have been disclosed as
of the date of this Agreement for purposes of determining whether the conditions
to Closing set forth in Article V have been satisfied. If the Closing occurs and
the Execution Update includes a matter or matters that (i) were inadvertently
omitted by Seller from the applicable Disclosure Schedules on the execution date
hereof, then the Deductible shall be reduced, as of the Closing Date, by
one-half of the amount of the Loss incurred by Buyer as a result of the breach
of the applicable representation or warranty caused by such matter or matters
and (ii) were intentionally and willfully omitted by Seller from the Disclosure
Schedules on the execution date hereof, then the Deductible shall not apply with
respect to Buyer's right to seek indemnity under Article VIII with respect to
the Loss incurred by Buyer as a result of the breach of the applicable
representation or warranty.

         (b) Seller shall have the right, until five (5) business days prior to
the Closing, to supplement the Disclosure Schedules relating to the Seller's
representations and warranties in Article II and the covenant in Section 4.11
with respect to any matter or matters arising on or after the date hereof which
would have been required to be set forth on or described in such Disclosure
Schedules to correct any information in any such Disclosure Schedule which has
been rendered inaccurate thereby; provided that the addition of such matter or
matters added with respect to the covenant in Section 4.11 were permitted
actions by Seller or the Company under Section 4.1(a) (a "POST-EXECUTION UPDATE
"). Any such Post-Execution Update furnished to Buyer will not be deemed to have
been disclosed as of the date of this Agreement for purposes of determining
whether the conditions to Closing set forth in Article V have been satisfied but
if Closing occurs, such Post-Execution Update shall be deemed to have cured any
breach of a representation or warranty relating to the matters set forth in such
Post-Execution Update for purposes of indemnification pursuant to Article VIII.

                  SECTION 4.8. CONFIDENTIAL INFORMATION.

         For two (2) years after the Closing, Seller and its Affiliates shall
not, directly or indirectly, disclose to any Person any information not in the
public domain or generally known in the industry, in any form, whether acquired
prior to or after the Closing Date, relating solely to the business and
operations of the Company. Notwithstanding the foregoing, Seller may disclose

                                       29

<PAGE>

any information relating to the business and operations of the Company (i) if
required by law or applicable stock exchange rule, (ii) to other Persons in the
conduct of Seller's or its Affiliates' other businesses which have a valid
business purpose for requiring such information, and such other Persons enter
into a confidentiality agreement with Seller similar to the confidentiality
agreement between Seller and Buyer dated February 3, 2003 (the "CONFIDENTIALITY
AGREEMENT"), and provided, further, that Seller shall be responsible for any
improper disclosure by any such other Person as if Seller itself had made such
improper disclosure, and (iii) to such other Persons if, at the time such
information is provided, such Person is already in the possession of such
information.

                  SECTION 4.9. NEGOTIATIONS.

         From and after the date hereof, none of Seller, the Company nor its
officers, directors, employees, affiliates, stockholders, representatives,
agents, nor anyone acting on behalf of them shall, directly or indirectly,
encourage, solicit, engage in discussions or negotiations with, or provide any
information to, any Person (other than Buyer or its representatives) concerning
any merger, sale of assets, purchase or sale of Shares or similar transaction
involving the Company unless this Agreement is terminated pursuant to and in
accordance with Article VII hereof.

                  SECTION 4.10. TAX COVENANTS AND INDEMNITY.

         (a) Parent shall cause to be included in the consolidated federal
income Tax Returns (and the state income Tax Returns of any state that permits
consolidated, combined or unitary income Tax Returns, if any) of the Parent
Group (as hereinafter defined) for all periods ending on or before the Closing
Date, all items of income, gain, loss, deduction or credit of the Company that
are required to be included therein, shall cause such Tax Returns to be timely
filed with the appropriate Tax authorities, and shall be responsible for the
timely payment of all Taxes due with respect to the periods covered by such Tax
Returns. On any such Tax Returns for a taxable period ending on the Closing
Date, the income of the Company will be apportioned between the period up to and
including the Closing Date and the period after the Closing Date by closing the
books of the Company as of the end of the Closing Date. For purposes hereof, the
"PARENT GROUP" shall mean the affiliated group of corporations of which Parent
(or any Affiliate of Parent other than the Company) is the common parent, which
join in the filing of a consolidated federal income Tax Return (and any similar
group under state law).

         (b) Seller shall prepare and file all Tax Returns relating to the
Company which are due prior to the Closing Date with the appropriate federal,
state, local and foreign Tax authorities, and shall pay, or cause to be paid,
the Taxes due thereon. For periods ending on or prior to the Closing Date, but
for which Tax Returns are not due prior to the Closing Date, Seller shall, not
later than 15 days before the applicable due date, prepare and submit to Buyer
for review, signature, and filing all such Tax Returns required to be filed by
the Company, and Seller shall timely pay the Taxes due thereon; provided,
however, that Buyer shall prepare and file all Tax Returns required to be filed
by the Company for taxable periods ending after the Closing Date and shall pay
all Taxes due thereon; provided, further, that Seller shall reimburse Buyer for
its allocable share of any Taxes attributable to Tax periods including the
Closing Date and ending after the Closing Date ("STRADDLE PERIOD") within twenty
(20) days of a request by Buyer for such reimbursement. Buyer and Seller shall
utilize appropriate methods to allocate liability for

                                       30

<PAGE>

purposes of the preceding sentence, which appropriate methods shall include the
following, without limitation: (i) for any transactional Taxes, including,
without limitation, Taxes based on sales, revenue, or gross or net income, the
allocation of liability between Seller and Buyer shall be determined using a
closing-of-the-books method assuming that the applicable Tax period consists of
two taxable periods, one ending at the close of the Closing Date and one
beginning at the opening of the day after the Closing Date, and (ii) for any
real estate Taxes or other property or asset-based Taxes, the allocation of
liability between Seller and Buyer shall be based on the number of days the
applicable asset was held by the Company in the applicable Tax period prior to
and including the Closing Date as compared to the number of days the applicable
asset was held by the Company in the applicable Tax period after the Closing
Date.

         (c) Seller will cause any tax sharing agreement or similar arrangement
with respect to Taxes involving the Company to be terminated effective as of the
Closing Date, to the extent any such agreement or arrangement relates to the
Company, and after the Closing Date the Company shall not be bound by or have
any obligation under any such agreement or arrangement for any past, present or
future period.

         (d) 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 equally by Buyer and Seller. Notwithstanding anything to the contrary in
this Section 4.10, 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 will use reasonable commercial efforts to provide such
Tax Returns to the other party at least 10 days prior to the due date for such
Tax Returns. If such a Tax Return is not timely filed, any interest and
penalties incurred as a result shall be the responsibility of the filing party.
In the event that any dispute between the parties concerning the form or content
of such Tax Returns cannot be timely resolved prior to their due date through
good-faith negotiation, the determination of the filing party shall be
controlling.

         (e) At the request of Buyer, in Buyer's sole discretion, Parent agrees
to join Buyer in making a timely, irrevocable and effective election under
section 338(h)(10) of the Code (and any comparable elections under state, local
or foreign Tax law) (collectively, the "SECTION 338(h)(10) ELECTION") with
respect to the acquisition of the Shares by Buyer pursuant to this Agreement.
Prior to the due date for filing IRS Form 8023 and any similar forms under
applicable state, local or foreign income Tax law (the "FORMS"), Buyer and
Parent shall cause the Forms to be duly executed by an authorized Person for
Buyer and Parent, respectively. Buyer shall duly and timely file the Forms as
prescribed by Treasury Regulation Section 1.338(h)(10)-1 or the corresponding
provisions of applicable state, local or foreign income Tax law. Buyer and
Parent agree that the Purchase Price and the liabilities of the Company (plus
other relevant items) shall be allocated among the assets of the Company for Tax
purposes in the manner required under section 338 of the Code and the Treasury
Regulations promulgated thereunder. Buyer and Parent shall endeavor in good
faith to reach timely agreement on such allocation. Buyer, Seller, Parent and
the Company shall duly and timely file the Forms and all Tax Returns (including
IRS Form 8883) in a manner consistent with the two preceding

                                       31

<PAGE>

sentences. Buyer and Parent shall cooperate fully with each other in the making
of the Section 338(h)(10) Election. Parent shall be responsible for all federal,
state, local and foreign income, franchise or similar Taxes resulting from the
Section 338(h)(10) Election. In the event a state or local Tax authority does
not allow or respect the Section 338(h)(10) Election and treats the federal
Section 338(h)(10) Election as an election under Code Section 338(g) for state
or local income Tax purposes, Buyer shall be responsible (up to a maximum
responsibility of $100,000) for the excess, if any, of (1) the net amount of
state and local income, franchise or similar Taxes imposed by such Tax authority
on the actual sale of the Shares to Buyer and the deemed sale of assets by the
Company over (2) the amount of such Taxes that would have been so imposed if
such sale had instead been treated as a sale of the assets of the Company
followed by the liquidation of the Company, and Parent shall be responsible for
the remainder of such Taxes.

         (f) Seller and Buyer shall each promptly provide the other with such
assistance as may reasonably be requested by either of them in connection with
the preparation of any Tax Return, any audit or other examination by any Tax
authority or any judicial or administrative proceeding with respect to Taxes;
and each shall retain in accordance with its customary document retention
policies (but at least until the expiration of the applicable statute of
limitations) and promptly provide the other with any records or other
information which may be relevant to any such return, audit examination or
proceeding.

         (g) Buyer shall, in the event that Buyer or, following the Closing
Date, the Company receives notice (whether orally or in writing) of any audit,
examination or claim by any taxing authority with respect to Taxes for which
Buyer or its Affiliates may be indemnified hereunder (a "TAX CLAIM"), promptly
notify Seller thereof, provided, however, that failure to give such notification
shall not affect the right of Buyer to indemnification provided hereunder except
to the extent that Seller has been actually prejudiced by such failure. Except
in the case of Taxes imposed with respect to a Straddle Period, Seller shall
have the right to contest, at its own expense, any Tax Claim, and shall be
entitled to control any such contest, provided, however, that Seller shall not
be entitled to settle or compromise any such contest without the consent of
Buyer, which consent shall not be unreasonably withheld or delayed, if such
settlement or compromise could affect the tax liability of Buyer or any of its
Affiliates for any period after the Closing Date, and provided, further that
Buyer may elect to participate, at its sole cost, with counsel of its choice in
any such contest. In the case of the contest of a Tax Claim with respect to any
Straddle Period, Seller shall have the right to participate at its own expense
in any such contest to the extent that the outcome could affect the liability of
Seller hereunder, and Buyer shall not settle any such contest in a manner that
could affect the liability of Seller without Seller's consent, which consent
shall not be unreasonably withheld or delayed. If Seller fails timely to defend,
contest or otherwise protect against any Tax Claim that it is entitled to
control pursuant to this Section 4.10(g), Buyer shall have the right to do so,
including, without limitation, the right to make any compromise or settlement
thereof, and Buyer shall be entitled to recover the entire cost thereof from
Seller, including, without limitation, reasonable attorneys' fees, disbursements
and amounts paid as a result of such Tax Claim.

         (h) Seller shall indemnify, defend and hold harmless Buyer, the Company
and any members of any group filing consolidated, combined or unitary, federal,
state or local income Tax Returns with Buyer or the Company (collectively, the
"BUYER TAX INDEMNITEES") from and against all Losses (as defined in Section
8.2(a)) attributable to (i) Taxes of the Company for any

                                       32

<PAGE>

Tax period ending on or before the Closing Date and the portion of any Straddle
Period ending on the Closing Date (determined in accordance with Section
4.10(b)), (ii) Taxes attributable to the ownership interests of the Company in,
or the activities of, any of the Retained Entities, and through the Closing
Date, Alaskan Northwest Natural Gas Transportation Company (iii) Taxes of any
member of an affiliated, consolidated, combined or unitary group of which the
Company (or any predecessor) is or was a member on or prior to the Closing Date,
including pursuant to Treasury Regulation Section 1.1502-6 or any analogous or
similar state, local or foreign law or regulation, (iv) Taxes of any other
Person imposed on the Company as a transferee or successor, by contract or
otherwise, which Taxes relate to an event or transaction occurring on or before
the Closing Date, (v) except as provided in the last sentence of Section
4.10(e), any Taxes attributable to the Section 338(h)(10) Election, or (vi) any
breach of any representation or warranty made in Section 2.9 or any covenants or
agreements made by Seller or Parent in this Section 4.10. Seller shall reimburse
the appropriate Buyer Tax Indemnitee for any Losses which are the responsibility
of Seller under this Section 4.10(h) within twenty (20) days after the payment
of the underlying Taxes by the Buyer Tax Indemnitee.

         (i) Buyer shall indemnify, defend and hold harmless Seller, Parent and
any members of any group filing consolidated, combined or unitary, federal,
state or local income Tax Returns with Seller or Parent (collectively, the
"SELLER TAX INDEMNITEES") from and against all Losses (as defined in Section
8.2(a)) attributable to any breach of any covenants or agreements made by Buyer
in this Section 4.10. Buyer shall reimburse the appropriate Seller Tax
Indemnitee for any Losses which are the responsibility of Buyer under this
Section 4.10(i) within twenty (20) days after the payment of the underlying
Taxes by the Seller Tax Indemnitee.

         (j) Article VIII, other than Section 8.2(a)(i) (with respect to the
representations and warranties in Section 2.18), Section 8.2(a)(ii) (with
respect to employee benefit matters), Section 8.2(a)(iii), Section 8.8 and the
limitations in Section 8.1, shall not be applicable to Losses attributable to
Taxes and the rights and liabilities of the parties for indemnification of
Losses attributable to Taxes shall be governed solely by this Section 4.10.

                  SECTION 4.11. INSURANCE, BONDS AND COLLATERAL.

         (a) Prior to the Closing, Buyer shall use its commercially reasonable
efforts to take such actions as may be necessary or appropriate so that all
surety bonds, letters of credit, and cash collateral issued in respect of the
Company listed on Schedule 4.11 (collectively, the "SELLER'S BONDS") will be
released and replaced immediately after the Closing, and Buyer shall take such
actions as are necessary to replace and release all the Seller's Bonds not later
than 30 days after the Closing Date by comparable surety bonds, letters of
credit and cash collateral provided by Buyer or an Affiliate of Buyer ("BUYER'S
BONDS"). Buyer shall reimburse Seller and its Affiliates for any and all Losses
(in each case without deduction or set off) incurred on account of claims and
payments made under or for the Seller's Bonds on or after the Closing Date upon
the receipt by Buyer of a written request accompanied by reasonable
documentation of the Losses for which reimbursement is requested.

         (b) From and after the Closing Date, except as provided in this Section
4.11(b), coverage for the Company under the Policies will terminate, and no new
claims by or on behalf of the Company will accrue under the Policies. Seller
shall purchase and pay in full any premium for a

                                       33

<PAGE>

discovery period under the Specified Policies (as such term is defined in
Section 9.16). This discovery period shall be effective as of the Closing Date
and shall terminate on May 1, 2006 at 12:01 a.m. Central time. Such discovery
period shall permit the Company to make claims under such excess liability
policies through April 30, 2006 to the extent such claims relate to occurrences
prior to the Closing Date and shall provide coverage to the full extent of the
policies in respect of such extended discovery period. Seller will cause the
Company to be named as an insured or additional insured under such policies to
the extent of such discovery period. After the Closing Date, Seller or Parent
shall continue to manage all workers' compensation and general liability and
automobile liability claims of the Company, which are known and reported on or
prior to the Closing Date, or which are covered under any insurance policy shown
on Schedule 2.19. Seller shall be responsible for workmen's compensation claims
by employees of the Company based upon pre-Closing occurrences, including
related deductibles and administrative costs. Buyer shall be responsible for the
deductible (to the extent not previously satisfied) in respect of claims (other
than workmen's compensation claims) made against or by or on behalf of the
Company prior to the Closing under the automobile general liability and excess
liability policies of Parent maintained for the Williams Companies' group, but
Seller shall be responsible for the other costs on account of such claims,
including, without limitation, third party administration charges. Buyer shall
be responsible for all costs on account of claims (other than workmen's
compensation claims) made by or on behalf of the Company based on a pre-Closing
occurrence when the claim is made after the Closing for all costs in excess of
insurance on account of such claims, including, without limitation, deductibles
and third party administration charges.

                  SECTION 4.12. INFORMATION TECHNOLOGY.

         (a) Upon the execution of this Agreement, the parties shall each
designate representatives to a migration team ("IT MIGRATION TEAM") that shall
be responsible for identifying all data, the specific software and hardware and
related documentation and development materials, and agreements for the use,
maintenance, training, support or service thereof necessary for Buyer to
continue operations of the Company including, without limitation, all financial,
accounting, operations, maintenance, billing, human resources and other aspects
of the operations of the Company in the ordinary course at a level of quality
and efficiency at least equal to the level experienced by the Company for the
period commencing January 1, 2002 through the Closing Date (the "IT STANDARD"),
including any Software listed on Schedule 2.12(a) that the IT Migration Team
determines should be transferred to the Company in order to meet the IT Standard
("IT ASSETS"). The IT Migration Team shall also be responsible for developing a
detailed plan to include cost estimates and timetables for: (i) successful
conversion and loading of existing Company data, (ii) integration of the IT
Assets into Buyer's or its Affiliate's information technology systems, (iii)
transfer or replacement of IT Asset licenses and maintenance agreements not
currently held in Company's name and (iv) any post-closing transitional services
reasonably required by Buyer or the Company to meet the IT Standard ("IT
MIGRATION PLAN"). The Migration Team shall complete the preparation of the IT
Migration Plan no later than 30 days after execution of this Agreement. If the
members of the IT Migration Team are unable to agree on aspects of the IT
Migration Plan within such 30-day period, Buyer and Seller may request, at the
option of either party and by notice to the other party, that their differences
be resolved by a nationally recognized information technology consulting firm
selected jointly by Buyer and Seller. If Buyer and Seller are unable to so
select the nationally

                                       34

<PAGE>

recognized information technology consulting firm within five days of any such
notice, either Buyer or Seller may thereafter request that the CPR Institute for
Dispute Resolution make such selection (as applicable, the firm selected by
Buyer and Seller or the firm selected by the CPR Institute for Dispute
Resolution is referred to as the "IT FIRM"). The parties shall direct the IT
Firm to use its reasonable best efforts to render its resolution within 30 days
after any disagreement is submitted by the parties. The fees and expenses of the
IT Firm shall be shared equally by Buyer and Seller. Upon completion of the IT
Migration Plan, the IT Migration Team promptly shall begin the pre-Closing
implementation of the IT Migration Plan in order for the parties to complete the
post-Closing transfer, conversion and loading of the Company data from Seller to
Buyer or Buyer's designated Affiliates, all in accordance with the IT Migration
Plan. The time for completion and execution of the IT Migration Plan shall be
referred to as the "IT MIGRATION PERIOD." The respective rights, benefits and
obligations of the parties, their Affiliates and the Company shall be addressed
in the IT Migration Plan, including the provision of various services and
products by Seller and its Affiliates to Buyer. The obligations of Seller, Buyer
and the Company for the respective post-Closing transition period specified for
such services or products in the IT Migration Plan, will be set forth in an
agreement to be substantially in the form of the Transition Services Agreement
attached as Exhibit 4.12 to be executed and delivered by Seller, Buyer and the
Company at Closing (the "TRANSITION SERVICES AGREEMENT").

         (b) On or before the expiration of the IT Migration Period and in
accordance with the IT Migration Plan, Seller shall, and shall cause its
Affiliates to either: (i) assign to Buyer or the Company all of their respective
right, title and interest in the IT Assets, including license and contract
rights and secure any consents necessary for such assignment; (ii) with respect
to license and software rights that, in accordance with the IT Migration Plan,
are to be retained by Seller and its Affiliates during the IT Migration Periods,
secure any consents necessary for the use by Seller and its Affiliates of the IT
Assets on behalf of the Company or Buyer during the IT Migration Period; or
(iii) if requested by Buyer, obtain for the Buyer or its designated Affiliate,
on commercially reasonable terms and at Buyer's expense, comparable replacements
for any IT Assets not assigned pursuant to (i) above. Fees for license transfers
or comparable replacements shall be borne by Buyer. Costs related to Seller's
employees and contractors involved in the preparation and implementation of the
IT Migration Plan shall be borne by Seller, and costs and expenses related to
Buyer's employees and contractors involved in the preparation and implementation
of the IT Migration Plan shall be borne by Buyer.

                  SECTION 4.13. SOFTWARE LICENSE.

         Effective upon the Closing Date, Seller, for itself and on behalf of
its Affiliates, hereby grants to the Company, Buyer and its Affiliates, an
irrevocable, nonexclusive, royalty-free, perpetual license, without right to
sublicense (other than to its Affiliates), to use, copy, modify, enhance, and
upgrade, and to have modified, used, enhanced and upgraded, solely for their
internal business purposes and not as a service bureau, all computer software
owned by Seller and/or its Affiliates which is used in connection with the
business of the Company as conducted as of the Closing Date ("LICENSED
SOFTWARE"). Any copies of the Licensed Software and any documentation related
thereto must contain all copyright and other intellectual property rights
notices included thereon. Except to the extent expressly provided in the
Transition Services Agreement, the Company and Buyer shall not be entitled to
receive, and Seller and its Affiliates shall have no obligation to provide, any
modifications, enhancements, or upgrades made to the

                                       35

<PAGE>

Licensed Software by Seller subsequent to the Closing Date. Ownership of all
Intellectual Property rights in the Licensed Software remains with Seller and
its Affiliates. Buyer shall not, and shall not permit any of its Affiliates to,
take any action inconsistent with Seller's and its Affiliates' rights in the
Licensed Software. All rights not expressly granted herein to the Company and
Buyer are retained by Seller and its Affiliates. EXCEPT AS OTHERWISE EXPRESSLY
PROVIDED IN THIS AGREEMENT, THE LICENSED SOFTWARE AND ANY RELATED DOCUMENTATION
ARE PROVIDED ON AN "AS IS" BASIS. SELLER AND ITS AFFILIATES HEREBY EXPRESSLY
DISCLAIM ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. SELLER AND ITS AFFILIATES DO NOT WARRANT THAT THE LICENSED SOFTWARE OR
DOCUMENTATION ARE ERROR-FREE OR THAT COMPANY'S OR BUYER'S USE THEREOF WILL BE
UNINTERRUPTED. ALL RIGHTS NOT EXPRESSLY GRANTED TO BUYER AND ITS AFFILIATES ARE
RETAINED BY SELLER AND ITS AFFILIATES.

                  SECTION 4.14. NON-SOFTWARE COPYRIGHT LICENSE.

         Effective upon the Closing Date, Seller, for itself and on behalf of
its Affiliates, hereby grants to the Company, Buyer and its Affiliates, a
nonexclusive royalty-free, perpetual license, without right to sublicense, to
use, copy, modify, enhance, and upgrade, solely for their internal business
purposes and not as a service bureau, all manuals, user guides, standards and
operation procedures and similar documents owned by Seller and/or its Affiliates
and used by the Company. All copies of the foregoing must reproduce and include
all copyright and other Intellectual Property rights notices provided by Seller.
All rights not expressly granted to Buyer and its Affiliates are retained by
Seller and its Affiliates.

                  SECTION 4.15. TRANSITIONAL TRADEMARK LICENSE.

         Effective upon the Closing Date, Seller and Seller's Affiliates, hereby
grant to the Company and Buyer a nonexclusive, nontransferable, royalty-free
license, without right to sublicense, to use, solely in the Company's business
as it is then conducted, any and all of Seller's Marks solely to the extent
appearing on existing inventory, advertising materials and property of the
Company (such as signage, vehicles, and equipment) for a period of six (6)
months from the Closing Date ("LICENSE PERIOD"). Buyer and the Company 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. Buyer and the Company 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 Seller's Marks by Buyer and the Company shall conform
to Seller's existing quality standards in existence as of the date hereof (a
copy of which has been furnished to Buyer). Immediately upon expiration of the
License Period, the Buyer and the Company 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. If
Buyer or the Company breaches the provisions of this section, Seller may
immediately terminate the License Period upon 15 days advance written notice.
Seller shall not use, from and after the Closing Date, any trademarks, service
marks or trademarks owned by the Company.

                                       36

<PAGE>

                  SECTION 4.16. REPORTING COOPERATION.

                  Seller will cooperate with the independent auditors chosen by
Buyer and its Affiliates, in connection with their audit of any annual
consolidated financial statements of the Company that Buyer or any of its
Affiliates requires to comply with Regulations S-X and S-K, and their review of
any interim quarterly consolidated financial statements of the Company that
Buyer or any of its Affiliates requires to comply with the reporting
requirements of the SEC set forth in Regulations S-K and S-X, but in no event
shall Seller be required pursuant to this Section 4.16 to cooperate with respect
to more than five (5) years of such annual consolidated financial statements of
the Company. Seller's cooperation will include (i) such access to Seller's
employees who were responsible for preparing the consolidated financial
statements and to workpapers and other supporting documents used in the
preparation of the consolidated financial statements as may be required by such
auditors to perform an audit in accordance with generally accepted auditing
standards, (ii) delivery of one or more customary representation letters from
Seller to such auditors that are requested by Buyer or any of its Affiliates to
allow such auditors to complete an audit (or review of any interim quarterly
financials), and to issue an opinion that in such Buyer Affiliate's experience
is acceptable to the SEC with respect to an audit or review of those
consolidated financial statements required pursuant to Section 4.16, (iii)
cooperation with Buyer and its Affiliates to obtain any necessary consents from
Ernst & Young, LLC to the use of the consolidated financial statements in any
filings Buyer or any of its Affiliates pursuant to the Securities Act of 1933,
as amended ("SECURITIES ACT") or the Securities and Exchange Act of 1934 and to
cooperate in seeking to obtain any related comfort letters from Ernst & Young,
LLC, and (iv) using commercially reasonable efforts to have Ernst & Young, LLC
provide such other assistance as Buyer may reasonably request with respect to
the foregoing. Buyer will reimburse Ernst & Young, LLC or Seller for any
reasonable overhead costs with respect to the providing any comfort letters or
consents or other assistance as provided above. Buyer or its appropriate
Affiliate will be responsible for any fees due to its independent auditors for
preparing the consolidated financial statements.

                  SECTION 4.17. TERMINATION OF CERTAIN RELATED PARTY CONTRACTS.

                  Effective as of the Closing Date, except as otherwise provided
in Schedule 4.17, Seller shall have terminated, or caused the Company and
Seller's other Affiliates to terminate the Affiliate Contracts and any
commitments of the Company with respect to the 1Line customer service
application being developed by Seller and its Affiliate. Seller shall be solely
liable for any contractual or other claims, express or implied, arising out of
the termination, cancellation and elimination of any of the foregoing and
performance by the Company thereunder prior to Closing. Prior to Closing, Seller
shall take such actions that are necessary to have the relevant parties amend
the credit agreement described in Item 1 of Schedule 2.16(c) (the "PARENT CREDIT
AGREEMENT") to remove the Company at or prior to the Closing as a borrower or
guarantor, as applicable, under such credit agreement, to release the Company
from any and all obligations under such credit agreement, and to obtain the
release of any Encumbrances against the Shares or any assets and properties of
the Company pledged in connection therewith.

                                       37

<PAGE>

                  SECTION 4.18. OTHER MATTERS.

         (a) On or prior to Closing, Seller and the Company shall execute and
deliver the Assumption and Agreement in the form of Exhibit 4.18.

         (b) On or prior to Closing, Seller shall cause the List C Contracts (as
such term is defined in Section 9.16) to be assigned to, and assumed by, Seller
or one of its Affiliates (other than the Company), such assignment and
assumption to be effected pursuant to an assignment and assumption agreement
which provides for indemnification by Seller of the Company against Losses (as
defined in Section 8.2(a)) with respect to the List C Contracts and is otherwise
in a form reasonably acceptable to Buyer.

         (c) Prior to the Closing, the Seller shall take such actions as may be
necessary or appropriate to cause the liens and security interests evidenced by
those certain filings on Standard Forms-UCC 1 (including any continuations
thereof) filed in Daviess County, Kentucky by Citicorp North America, Inc., as
Agent, as Secured Party in respect of the Company, or Debtor, and relating to
the Trade Receivable Purchase and Sale Agreements identified therein, to be
released, and evidence of such release shall be furnished to Buyer (which
evidence shall be reasonably acceptable to Buyer).

                  SECTION 4.19. GUARANTIES.

         Loews Corporation will execute, upon execution of this Agreement, a
guaranty substantially in the form of Exhibit 4.19(a), and Parent will execute,
upon execution of this Agreement, a guaranty substantially in the form of
Exhibit 4.19(b).

                  SECTION 4.20. COMPANY OFFICERS AND DIRECTORS.

         (a) Prior to Closing, Seller shall furnish to Buyer a list of the
Persons then serving as an officer or director of the Company.

         (b) Seller shall use its reasonable efforts to cause the resignations
delivered under Section 5.1(h) for the officers, directors or managers of the
Company who are not Transferred Employees to include releases of the Company in
a form reasonably satisfactory to Buyer. If Seller is not able to obtain such a
release from any such Person prior to the Closing, Seller shall agree to
indemnify the Company and Buyer from any claims by such Person against the
Company arising from such Person acting as an officer, director, or manager of
the Company, in a form reasonably acceptable to Buyer.

                  SECTION 4.21. WORK PROTOCOL.

         Upon the receipt by Seller of a written notice timely given under
Schedule 4.21, the parties shall follow and comply with the protocols and
procedures set forth in Schedule 4.21.

                                       38

<PAGE>

                                   ARTICLE V.
                       CONDITIONS TO OBLIGATIONS OF BUYER

          The obligations of Buyer to consummate the transactions contemplated
by this Agreement are subject to the fulfillment, at or before the Closing Date,
of the following conditions, any one or more of which may be waived by Buyer in
its sole discretion:

                  SECTION 5.1. RECEIPT OF DOCUMENTS.

         Seller shall have delivered, or be standing ready to deliver, to Buyer:

         (a) a duly executed Stock Transfer dated the Closing Date.

         (b) any documents Buyer may reasonably require relating to the
existence of Seller, the Company and the authority of Seller and the Company and
its shareholders for this Agreement and the Transaction Documents, all in form
and substance reasonably satisfactory to Buyer;

         (c) the books of account, minute books, stock ledgers and
Organizational Documents of the Company and copies of the employee records of
the Additional Employees who have accepted offers of employment from Buyer
(other than copies of medical records and other records that require the consent
of the employee to be disclosed to Buyer relating to such Additional Employees);

         (d) evidence, reasonably satisfactory to Buyer, of the dividend or
transfer to Seller or its Affiliates effective prior to Closing of all ownership
interests in the Retained Entities;

         (e) evidence, reasonably satisfactory to Buyer, of the termination of
the agreements described in Section 4.17, the amendment of the Parent Credit
Agreement and the releases described in Section 4.17;

         (f) an opinion of Seller's counsel in a form reasonably satisfactory to
Buyer;

         (g) a properly executed statement, dated as of the Closing Date, in
form and substance reasonably acceptable to Buyer conforming to the requirements
of Treasury Regulation Section 1.1445-2(b)(2), and any other certificate or
similar documents reasonably requested by Buyer that may be required by any
relevant Tax authority in order to relieve Buyer of any obligation to withhold
any portion of the Purchase Price;

         (h) if requested by Buyer, duly executed letters of resignation from
any or all of the officers, directors and managers of the Company, in a form
reasonably acceptable to Buyer; and

         (i) certificates of insurance naming Buyer and the Company as an
insured or additional insured under the extended discovery period coverage
described in Section 4.11(b).

                  SECTION 5.2. REPRESENTATIONS AND WARRANTIES OF SELLER.

         All representations and warranties made by Seller in this Agreement (i)
that are qualified as to materiality or Material Adverse Effect or similar
exception or qualifier shall be true and

                                       39

<PAGE>

correct in all respects, (ii) in Section 2.9(b)(xvii) shall be true and correct
in all respects and (iii) except for the representation and warranty referred to
in clause (ii), that are not qualified as to materiality or Material Adverse
Effect or similar exception or qualifier shall be true and correct in all
material respects, in each case, on and as of the Closing Date as if again made
by Seller on and as of such date, and Buyer shall have received a certificate
dated the Closing Date and signed by a senior executive officer of Seller to
that effect.

                  SECTION 5.3. PERFORMANCE OF SELLER'S OBLIGATIONS.

         Seller shall have performed all obligations required under this
Agreement to be performed by it on or before the Closing Date in all material
respects, and Buyer shall have received a certificate dated the Closing Date and
signed by a senior executive officer of Seller to that effect.

                  SECTION 5.4. CONSENTS AND APPROVALS.

         The consents, waivers, authorizations and approvals set forth on
Schedule 2.6 or that are required under the documents listed in Schedule 2.6
shall have been duly obtained and shall be in full force and effect on the
Closing Date. All applicable waiting periods under the HSR Act shall have
expired or been terminated.

                  SECTION 5.5. NO VIOLATION OF ORDERS.

         No preliminary or permanent injunction or other order issued by any
Governmental Authority, which declares this Agreement or any of the Transaction
Documents invalid or unenforceable in any respect or which prevents the
consummation of the transactions contemplated hereby shall be in effect; and no
action or proceeding before any Governmental Authority shall have been
instituted by a Governmental Authority or other person or threatened by any
Government Authority which seeks to prevent or delay the consummation of the
transactions contemplated by this Agreement or any of the Transaction Documents
or which challenges the validity or enforceability of this Agreement.

                  SECTION 5.6. TRANSITION SERVICES AGREEMENT.

         The parties shall have executed and delivered prior to or at Closing
the Transition Services Agreement.

                                   ARTICLE VI.
                       CONDITIONS TO OBLIGATIONS OF SELLER

          The obligations of Seller to consummate the transactions contemplated
by this Agreement are subject to the fulfillment, at or before the Closing Date,
of the following conditions, any one or more of which may be waived by Seller in
its sole discretion:

                  SECTION 6.1. REPRESENTATIONS AND WARRANTIES OF BUYER.

         All representations and warranties made by Buyer in this Agreement (i)
that are qualified as to materiality or Material Adverse Effect or similar
exception or qualifier shall be true and

                                       40

<PAGE>

correct in all respects and (ii) that are not qualified as to materiality or
material adverse effect or similar exception or qualifier shall be true and
correct in all material respects, in each case, on and as of the Closing Date as
if again made by Buyer on and as of such date, and Seller shall have received a
certificate dated the Closing Date and signed by a senior executive officer of
Buyer to that effect.

                  SECTION 6.2. PERFORMANCE OF BUYER'S OBLIGATIONS.

         Buyer shall have performed all obligations required under this
Agreement to be performed by it on or before the Closing Date except for such
non-performance as would not, individually or in the aggregate, have a material
adverse effect on Buyer's ability to perform its obligations under this
Agreement, and Seller shall have received a certificate dated the Closing Date
and signed by a senior executive officer of Buyer to that effect.

                  SECTION 6.3. CONSENTS AND APPROVALS.

         All consents, waivers, authorizations and approvals set forth on
Schedule 3.4 or that are required under the documents listed in Schedule 3.4
shall have been duly obtained and shall be in full force and effect on the
Closing Date. All applicable waiting periods under the HSR Act shall have
expired or been terminated.

                  SECTION 6.4. NO VIOLATION OF ORDERS.

         No preliminary or permanent injunction or other order issued by any
Governmental Authority, that declares this Agreement invalid or unenforceable in
any respect or which prevents the consummation of the transactions contemplated
hereby shall be in effect; and no action or proceeding before any Governmental
Authority, shall have been instituted by a Governmental Authority or other
person or threatened by any Governmental Authority which seeks to prevent or
delay the consummation of the transactions contemplated by this Agreement or
which challenges the validity or enforceability of this Agreement.

                  SECTION 6.5. PURCHASE PRICE.

         Buyer shall have paid and delivered to Seller, or be standing ready to
pay and deliver to Seller, the Estimated Purchase Price.

SECTION 6.6.  OPINION OF BUYER'S COUNSEL.

         Buyer shall have delivered, or be standing ready to deliver, to Seller
an opinion of Buyer's counsel in a form reasonably satisfactory to Seller.

                                       41

<PAGE>

                                  ARTICLE VII.
                           TERMINATION AND ABANDONMENT

                  SECTION 7.1. METHODS OF TERMINATION; UPSET DATE.

         This Agreement may be terminated and the transactions contemplated
hereby may be abandoned at any time before the Closing:

         (a) by the mutual written consent of Seller and Buyer;

         (b) by Seller, if Buyer fails to comply with any of its covenants or
agreements contained herein, or breaches its representations and warranties
contained herein, which failure to comply or breach is not cured within 30 days
after receipt by Buyer from Seller of written notice specifying particularly
such failure to comply or breach, and such failure to comply or breach would
result in a failure to satisfy the conditions to Closing set forth in Sections
6.1 and/or 6.2;

         (c) by Buyer, if Seller fails to comply with any of its covenants or
agreements contained herein, or breaches its representations and warranties
contained herein, which failure to comply or breach is not cured within 30 days
after receipt by Seller from Buyer of written notice specifying particularly
such failure to comply or breach, and such failure to comply or breach would
result in the failure to satisfy the conditions to Closing set forth in Sections
5.2 and/or 5.3;

         (d) by Seller or Buyer, if a Governmental Authority shall have issued
an order, decree or ruling or taken any other action (which order, decree or
ruling the parties hereto shall use their reasonable best efforts to lift),
which permanently restrains, enjoins or otherwise prohibits the transactions
contemplated by this Agreement and which order, decree, ruling or other action
is not subject to appeal; or

         (e) by Seller or Buyer at any time after June 30, 2003, provided that
the terminating party is not in default of its obligations hereunder in any
material respect.

                  SECTION 7.2. PROCEDURE UPON TERMINATION.

         In the event of termination and abandonment of this Agreement pursuant
to Section 7.1, written notice thereof shall forthwith be given to the other
party hereto and this Agreement shall terminate and the transactions
contemplated hereby shall be abandoned, without further action by Seller or
Buyer. If this Agreement is terminated as provided herein, no party to this
Agreement shall have any liability or further obligation to any other party to
this Agreement except as provided in Sections 8.4, 8.6, 9.3, 9.4, 9.11 and 9.12
hereof; provided, however, that no termination of this Agreement pursuant to
this Article VII shall relieve any party of liability for a willful and material
breach of any representation or warranty contained in this Agreement or for any
material breach of a covenant or agreement contained in this Agreement, in each
case occurring before such termination.

                                       42

<PAGE>

                                  ARTICLE VIII.
                            SURVIVAL; INDEMNIFICATION

                  SECTION 8.1. SURVIVAL.

         The representations and warranties of Seller contained herein or in any
certificates or other documents delivered pursuant to this Agreement on the
Closing and Seller's covenants in Section 4.1 hereof shall survive the Closing
until the first anniversary of the Closing Date, provided, however, that the
representations and warranties set forth in Section 2.2 (Capitalization; Title),
Section 2.4 (Validity of Agreement; Authorization), and Section 2.17 (Brokers)
shall survive indefinitely and the representations and warranties set forth in
Section 2.9 (Tax Matters) and the covenants set forth in Section 4.10 (Tax
Covenants) shall survive for a period equal to thirty (30) days after the
applicable statute of limitations (as the same may be extended) for each Tax and
taxable year. The other agreements, covenants and terms of this Agreement and
the agreements delivered in connection herewith shall survive the Closing.

                  SECTION 8.2. INDEMNIFICATION COVERAGE.

         (a) From and after the Closing, Seller shall indemnify and defend, save
and hold Buyer, the Company and their Affiliates and each of their officers,
directors, employees and agents (collectively, the "BUYER INDEMNIFIED PARTIES")
harmless if any such Buyer Indemnified Party shall suffer 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") arising out of, relating to or resulting from:

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

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

                           (iii)    any Loss for which the Company has joint and
         several liability with Parent or any Affiliate of Parent under Title IV
         of ERISA or the Code or to the PBGC with respect to termination of any
         employee pension benefit plan that is or was maintained or sponsored by
         Seller or any of its Affiliates (other than the Company)), and is
         subject to Title IV of ERISA but excluding any such liability covered
         under Section 4.10 hereof;

                           (iv)     any claim arising out of a Person's exposure
         to asbestos containing material that originated from or that was used
         in any buildings or other facilities owned or leased by the Company on
         or prior to the Closing Date but only to the extent such exposure
         occurred on or prior to the Closing Date;

                                    (v)      actions, investigations, suits or
         proceedings set forth on Schedule 8.2(v);

                                       43

<PAGE>

                                    (vi)     matters or claims arising out of
         the operations of or the participation by the Company in the Retained
         Entities or the Company's ownership interest therein;

                                    (vii)    claims made under the contracts
         described in Schedule 8.2(vii); and

                                    (viii)   the enforcement of the provisions
         of this Section 8.2(a).

                                    For purposes of determining the amount of
any Loss incurred under subsection (i) above (but not for purposes of
determining whether or not a breach has occurred), each representation and
warranty shall be read without giving effect to any materiality or Material
Adverse Effect or similar exception or qualifier set forth therein.

         (b) From and after the Closing, Buyer and the Company shall indemnify
and defend, save and hold Seller and its Affiliates and its and their officers,
directors, employees and agents (collectively, the "SELLER INDEMNIFIED PARTIES")
harmless if Seller Indemnified Parties shall suffer any Loss arising out of,
relating to, or resulting from:

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

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

                                    (iii)    the enforcement of the provisions
         of this Section 8.2(b).

                                    For purposes of determining the amount of
any Loss incurred under subsection (i) above (but not for purposes of
determining whether or not a breach has occurred), each representation and
warranty shall be read without giving effect to any materiality or Material
Adverse Effect or similar exception or qualifier set forth therein.

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

                                    (i) Seller's aggregate liability under
         Section 8.2(a)(i) shall not exceed $78,000,000.00;

                                    (ii) no indemnification for any Losses
         asserted against Seller under Section 8.2(a)(i) shall be required
         unless and until the cumulative aggregate amount of such Losses against
         Seller exceeds $7,500,000.00 (the "DEDUCTIBLE"), at which point Seller
         shall be obligated to indemnify the Buyer Indemnified Parties (as
         hereinafter defined) only as to the amount of such Losses in excess of
         the Deductible, subject to the limitation in Section 8.2(c)(i) and as
         the Deductible may be reduced under Section 4.7;

                                       44

<PAGE>

                                    (iii) the amount of any Losses suffered by a
         Seller Indemnified Party or a Buyer Indemnified Party, as the case may
         be (such party seeking indemnification, the "INDEMNIFIED PARTY," and
         the other party, the "INDEMNIFYING PARTY"), shall be reduced by any
         third-party insurance or other indemnification benefits which such
         party receives in respect of or as a result of such Losses. If any
         Losses for which indemnification is provided hereunder are subsequently
         reduced by any third-party insurance or other indemnification benefit
         or recovery, the amount of the reduction shall be remitted to the
         Indemnifying Party;

                                    (iv) any calculation of Losses for purposes
         of Article VIII hereof shall take into account any U.S. federal, state
         or local tax consequences to Seller Indemnified Party or Buyer
         Indemnified Party seeking indemnification pursuant to this Article VIII
         hereof, as the case may be;

                                    (v) no claim may be asserted nor may any
         action be commenced against Seller for breach or inaccuracy of any
         representation or breach of a warranty or covenant, unless written
         notice of such claim or action is received by 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 or covenant on which such claim or
         action is based ceases to survive as set forth in Section 8.1;

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

                                    (vii) the limitations on indemnification set
         forth in clauses (i) and (ii) of this Section 8.2(c) shall not apply to
         any Losses arising from any inaccuracy or breach of Sections 2.2 or
         2.17; and

                                    (viii) any indemnification for Losses
         asserted by Buyer under Section 8.2(a)(iv) that relate to a Person's
         exposure both before and after the Closing Date shall be reduced to the
         extent such Losses resulted from Buyer's, the Company's or any of its
         or their representatives' or contractors' failure to comply with
         applicable Environmental Laws when abating, managing, treating, or
         otherwise handling asbestos after the Closing Date in any of the
         buildings or facilities that are subject to the indemnity in Section
         8.2(a)(iv).

                  SECTION 8.3. PROCEDURES.

         (a) Any Indemnified Party shall notify the Indemnifying Party (with
reasonable specificity) promptly after it becomes aware of facts supporting the
commencement of or the assertion of any claim or action, suit or proceeding by a
third party in respect of which indemnification under this Article VIII may be
sought (each, a "THIRD PARTY CLAIM"), and shall provide to the Indemnifying
Party as soon as practicable thereafter copies of all papers served (if any)
with respect to such Third Party Claim. Subject to Section 8.2(c)(v), the
failure to so notify or provide information to the 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

                                       45

<PAGE>

Party is 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 of such material prejudice. If the
Indemnifying Party does not dispute its potential liability to the Indemnified
Party with respect to such Third Party Claim, then the Indemnifying Party shall
have the right, exercisable by written notice to the Indemnified Party within
ten days after receipt of notice from the Indemnified Party of the Third Party
Claim (each, a "ELECTION PERIOD"), to participate in and defend, contest or
otherwise protect the Indemnified Party against any such claim, action, suit or
proceeding with counsel of the Indemnifying Party's choice (which counsel shall
be reasonably satisfactory to the Indemnified Party) 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 disputes its potential liability to the Indemnified Party, does not elect
within the Election Period to defend the claim or action or fails to timely and
diligently 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. Payments of all amounts owing
by the Indemnifying Party pursuant to this Section 8.l3(a) shall be made not
later than thirty (30) days after the latest of (A) the settlement of the Third
Party Claim, (B) the expiration of the period for appeal of a final adjudication
of such Third Party Claim or (C) the expiration of the period for appeal of a
final adjudication of the Indemnifying Party's liability to the Indemnified
Party under this Agreement.

         (b) If an Indemnified Party should have a claim against an Indemnifying
Party hereunder which does not involve a Third Party Claim, the Indemnified
Party shall transmit a written indemnity notice to the Indemnifying Party
describing in detail the nature of the claim and the basis of the Indemnified
Party's request for indemnification under this Agreement and including all
supporting documentation. If the Indemnifying Party notifies the Indemnified
Party that it does not dispute such claim, the Indemnifying Party shall pay the
Indemnified Party the amount of such claim within thirty (30) days of such
notice. If the Indemnifying Party disputes such claim, the Indemnifying Party
shall notify the Indemnified Party and such dispute shall be resolved by
litigation in an appropriate court of competent jurisdiction.

         (c) Notwithstanding anything to the contrary in this Section 8.3,
should any Third Party Claim hereunder involve a situation where the Indemnified
Party reasonably anticipates that part of the claim will be borne by it and part
of the claim will be borne by the Indemnifying Party due to the existence of the
limitations in Section 8.2(c)(i) or (ii), the parties shall jointly consult and
proceed as to any such Third Party Claim.

                                       46

<PAGE>

                  SECTION 8.4. WAIVER OF CONSEQUENTIAL, ETC. DAMAGES.

         NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, BUYER SHALL
NOT BE LIABLE TO ANY OF THE SELLER INDEMNIFIED PARTIES, NOR SHALL SELLER BE
LIABLE TO ANY OF THE BUYER INDEMNIFIED PARTIES, FOR ANY EXEMPLARY, PUNITIVE,
SPECIAL, INDIRECT, CONSEQUENTIAL, REMOTE, OR SPECULATIVE DAMAGES OR LOSSES
(INCLUDING, WITHOUT LIMITATION, ANY DAMAGES OR LOSSES ON ACCOUNT OF LOST PROFITS
OR OPPORTUNITIES) RESULTING FROM OR ARISING OUT OF THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY, EXCEPT FOR ANY OF THE FOREGOING CONSTITUTING
OR RESULTING FROM A THIRD PARTY CLAIM.

                  SECTION 8.5. COMPLIANCE WITH EXPRESS NEGLIGENCE RULE.

         ALL RELEASES, DISCLAIMERS, LIMITATIONS ON LIABILITY, AND INDEMNITIES IN
THIS AGREEMENT, INCLUDING THOSE IN THIS ARTICLE VIII, SHALL APPLY EVEN IN THE
EVENT OF THE SOLE, JOINT, AND/OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, OR
OTHER FAULT OF THE PARTY WHOSE LIABILITY IS RELEASED, DISCLAIMED, LIMITED, OR
INDEMNIFIED.

                  SECTION 8.6. LIQUIDATED DAMAGES.

         If (a) Seller terminates this Agreement as provided in Section 7.1(b),
or (b) (i) the conditions to the obligations of Buyer set forth in Article V
have been satisfied, (ii) this Agreement has not been terminated pursuant to
Sections 7.1(a), (c), or (d), and (iii) the Closing has not occurred by June 30,
2003, then Buyer shall pay to Seller a sum equal to $40,000,000.00 by wire
transfer of immediately available funds to a bank account in the United States
of America designated in writing by Seller not later than three days following
receipt of such designation. BUYER HEREBY ACKNOWLEDGES THAT (1) THE EXTENT OF
DAMAGES TO SELLER CAUSED BY THE FAILURE OF THIS TRANSACTION TO BE CONSUMMATED
WOULD BE IMPOSSIBLE OR EXTREMELY DIFFICULT TO ASCERTAIN (2) THE AMOUNT OF THE
LIQUIDATED DAMAGES PROVIDED FOR IN THIS SECTION 8.6 IS A FAIR AND REASONABLE
ESTIMATE OF SUCH DAMAGES UNDER THE CIRCUMSTANCES AND (3) RECEIPT OF SUCH AMOUNT
BY SELLER DOES NOT CONSTITUTE A PENALTY AND WILL BE SELLER'S SOLE AND EXCLUSIVE
REMEDY FOR SUCH TERMINATION OF THIS AGREEMENT.

                  SECTION 8.7. REMEDY.

         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, Section
4.10 or Section 9.3.

                                       47

<PAGE>

                   SECTION 8.8. TAX TREATMENT OF INDEMNITY PAYMENTS.

         Each party, to the extent permitted by applicable law, agrees to treat
any payments made pursuant to Section 4.10 or this Article VIII as adjustments
to the Purchase Price for all federal and state income and franchise Tax
purposes.

                  SECTION 8.9. LITIGATION ASSISTANCE.

         From and after the Closing, Buyer shall cause the Company to provide,
at no cost to Seller, (a) access to all records, files and information
maintained or held by the Company with respect to the litigation and claims
referred to in Section 8.2(a)(v) and Schedule 8.2(v), the Retained Entities and
the contracts referred to in Section 8.2(a)(vii) and Schedule 8.2(vii) and (b)
make available all employees of the Company who have knowledge of such
litigation and claims, the Retained Entities and such contracts, in each case,
upon the reasonable request by Seller from time to time.

                                   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.

         Neither party shall assign any of its rights or delegate any of its
obligations under this Agreement without the prior written consent of the other
party, except that Buyer, and after the Closing, Seller may assign its rights or
delegate its obligations under this Agreement to an Affiliate without such
consent (but no such assignment or delegation shall relieve the assignor or
delegator of its obligations hereunder). Except as provided in the preceding
sentence, this Agreement shall inure to the benefit of, and be binding upon, the
parties hereto and their respective successors and permitted assigns. Except as
contemplated by Article VIII, Section 4.10 or Section 9.3, nothing in this
Agreement shall confer upon any Person not a party to this Agreement, or the
legal representatives of such Person, 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) Seller shall indemnify and agrees 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
Party by any broker or other person who claims to be

                                       48

<PAGE>

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 Seller or the Company or any of their respective Affiliates.

         (b) Buyer shall indemnify and agrees 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 any Seller
Indemnified Party 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
Buyer or any of their respective Affiliates.

                  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. Seller and Buyer shall
each bear one-half of the costs of HSR Act filing fees.

                  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 Buyer, to:

                  Loews Pipeline Holding Corp.
                  667 Madison Avenue
                  New York, New York 10021
                  Facsimile: 212-935-6801
                  Attention: Corporate Secretary

                  with a copy to:

                  Dickstein Shapiro Morin & Oshinsky LLP
                  2101 L Street N.W.
                  Washington, D.C. 20037
                  Facsimile: 202-887-0689
                  Attention: Patrick W. Lynch

         (b) If to Seller, to:

                  Williams Gas Pipeline Company, LLC
                  One Williams Center
                  Tulsa, Oklahoma 74172

                                       49

<PAGE>

                  Facsimile: 918-573-5942
                  Attention: General Counsel

                  with a copy to:

                  Andrews & Kurth L.L.P.
                  600 Travis, Suite 4200
                  Houston, Texas  77002
                  Facsimile: 713-220-4285
                  Attention: G. Michael O'Leary or Hal V. Haltom, Jr.

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 Transaction Documents and
the exhibits and schedules hereto and thereto, and the Confidentiality Agreement
represent the entire agreement and understanding of the parties with respect to
the transactions contemplated herein and therein and no representations or
warranties have been made in connection with the transactions contemplated
hereby or thereby other than those expressly set forth herein or therein. This
Agreement, together with the Transaction Documents and the exhibits and
schedules hereto and thereto, and the Confidentiality Agreement supersede all
prior negotiations, discussions, correspondence, communications, understandings
and agreements between the parties relating to the subject matter of this
Agreement, the Transaction Documents and the Confidentiality Agreement and all
prior drafts of this Agreement, the Transaction Documents and the
Confidentiality Agreement, all of which are merged into this Agreement, the
Transaction Documents and the Confidentiality Agreement, respectively. No prior
drafts of this Agreement, the Transaction Documents or the Confidentiality
Agreement and no words or phrases from any such prior drafts shall be admissible
into evidence in any action or suit involving this Agreement, the Transaction
Documents or the Confidentiality Agreement.

                  SECTION 9.7. WAIVERS AND AMENDMENTS.

         Seller or 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

                                       50

<PAGE>

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 Buyer or 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 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.

                  SECTION 9.12. GOVERNING LAW.

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

                  SECTION 9.13. DISCLAIMER OF WARRANTIES.

         (a) INFORMATION. EXCEPT AS PROVIDED IN THIS AGREEMENT, SELLER MAKES NO
REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED, AT COMMON LAW, STATUTORY OR
OTHERWISE, WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION,
RECORDS, AND DATA NOW, HERETOFORE, OR HEREAFTER MADE AVAILABLE TO BUYER IN
CONNECTION

                                       51

<PAGE>

WITH THIS AGREEMENT (INCLUDING ANY DESCRIPTION OF THE COMPANY OR ITS FACILITIES
OR EQUIPMENT, REVENUE, PRICE AND EXPENSE ASSUMPTIONS, FORECASTS, OR
ENVIRONMENTAL INFORMATION, OR ANY OTHER INFORMATION FURNISHED TO BUYER BY SELLER
OR ANY AFFILIATE OF SELLER OR ANY DIRECTOR, OFFICER, EMPLOYEE, COUNSEL, AGENT,
OR ADVISOR THEREOF).

         (b) FACILITIES. NOTWITHSTANDING ANYTHING CONTAINED TO THE CONTRARY IN
ANY OTHER PROVISION OF THIS AGREEMENT, IT IS THE EXPLICIT INTENT OF EACH PARTY
TO THIS AGREEMENT THAT, EXCEPT FOR THE REPRESENTATIONS OR WARRANTIES GIVEN IN
THIS AGREEMENT, (I) SELLER IS NOT MAKING ANY REPRESENTATION OR WARRANTY
WHATSOEVER, EXPRESS, IMPLIED, AT COMMON LAW, STATUTORY OR OTHERWISE, AND (II)
BUYER ACKNOWLEDGES AND AGREES THAT THE FACILITIES, EQUIPMENT AND OTHER ASSETS OF
THE COMPANY ARE BEING TAKEN BY BUYER, SUBJECT TO ALL FAULTS, "AS IS" AND "WHERE
IS." WITHOUT LIMITING THE GENERALITY OF THE IMMEDIATELY PRECEDING SENTENCE,
EXCEPT AS PROVIDED IN THIS AGREEMENT, SELLER HEREBY EXPRESSLY DISCLAIMS AND
NEGATES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT COMMON LAW,
STATUTORY, OR OTHERWISE, RELATING TO (I) THE CONDITION OF THE FACILITIES,
EQUIPMENT AND OTHER ASSETS OF THE COMPANY (INCLUDING ANY IMPLIED OR EXPRESS
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR OF
CONFORMITY TO MODELS OR SAMPLES OF MATERIALS, OR THE PRESENCE OR ABSENCE OF ANY
HAZARDOUS MATERIALS IN OR ON, OR DISPOSED OR DISCHARGED FROM, SUCH FACILITIES,
EQUIPMENT AND OTHER ASSETS) OR (II) ANY INFRINGEMENT BY SELLER, THE COMPANY, OR
ANY OF THEIR AFFILIATES OF ANY PATENT OR PROPRIETARY RIGHT OF ANY THIRD PARTY.
BUYER HAS AGREED NOT TO RELY ON ANY REPRESENTATION MADE BY SELLER WITH RESPECT
TO THE CONDITION, QUALITY, OR STATE OF THE FACILITIES, EQUIPMENT AND OTHER
ASSETS OF THE COMPANY EXCEPT FOR THOSE IN THIS AGREEMENT, BUT RATHER, AS A
SIGNIFICANT PORTION OF THE CONSIDERATION GIVEN TO SELLER FOR THIS PURCHASE AND
SALE, HAS AGREED, EXCEPT AS PROVIDED IN THIS AGREEMENT, TO RELY SOLELY AND
EXCLUSIVELY UPON ITS OWN EVALUATION OF THE COMPANY AND THE FACILITIES, EQUIPMENT
AND OTHER ASSETS OF THE COMPANY. THE PROVISIONS CONTAINED IN THIS AGREEMENT ARE
THE RESULT OF EXTENSIVE NEGOTIATIONS BETWEEN BUYER AND SELLER AND NO OTHER
ASSURANCES, REPRESENTATIONS OR WARRANTIES ABOUT THE QUALITY, CONDITION, OR STATE
OF THE COMPANY, TGT SUB, THE LLC AND THE FACILITIES, EQUIPMENT AND OTHER ASSETS
OF THE COMPANY WERE MADE BY SELLER IN THE INDUCEMENT THEREOF, EXCEPT AS PROVIDED
HEREIN.

                  SECTION 9.14. [INTENTIONALLY OMITTED]

                  SECTION 9.15. BULK SALES OR TRANSFER LAWS.

         Buyer hereby waives compliance by Seller with the provisions of any
applicable bulk sales or transfer laws.

                                       52

<PAGE>

                  SECTION 9.16. 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.

         (b) "FUNDED DEBT" shall mean the Company's 7 1/4% debentures due 2027
and 8 5/8% Notes due 2004, as more fully described in Schedule 1.2.

         (c) "INTELLECTUAL PROPERTY" means proprietary inventions, marks
(including trademarks and service marks), copyrights, mask works, applications
therefor, patents thereon, registrations and licenses thereof, royalty rights,
proprietary technical information, trade secrets, secret processes and
procedures, know-how (including technical drawings and specifications), and
Software including all property listed or described on Schedule 2.12(a).

         (d) "KNOWLEDGE" means the actual knowledge of Doug Whisenant, Brian
Shore, Dean Jones, Alan Englehart, Kathy Kirk, Jamie Buskill, Tom Janorschke,
Doug Field, Jim Hendrix, Jeff Heinrichs and Richard Rodekohr.

         (e) "LIST C CONTRACTS" means those 37 contracts, identified by Contract
Number, set forth under the heading "Response - List C Contracts managed by
Marketing Company" to Question No. GSR-1-(3k) (Requirements and has Supply) set
forth in the Company's Response to Data Request of Customer Group 1 GSR Group
(GSR-1) of Docket No. RP94-119.

         (f) "MATERIAL ADVERSE EFFECT" shall mean any condition, change,
circumstance or event, individually or when taken together with all other
conditions, changes, circumstances and events that have occurred during any
relevant period of time prior to determination of Material Adverse Effect, that
has a material adverse effect on (x) the assets, properties, business, results
of operations or financial condition of the Company, 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, (ii) any effect resulting
from changes in general economic conditions in the industry in which the Company
operates, and (iii) any effect resulting from changes in the United States or
global economy as a whole, or (y) the ability of Seller to timely perform in all
material respects its obligations under this Agreement and the Transaction
Documents.

         (g) "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).

         (h) "RETAINED ENTITIES" shall mean TGT Enterprises, LLC, a Delaware
limited liability company and a wholly owned subsidiary of the Company (the
"LLC"), TGT Enterprises, Inc., a Delaware corporation and a wholly owned
subsidiary of the LLC ("TGT SUB"), and Unitary GH&C Products, LLC, a limited
liability company.

                                       53

<PAGE>

         (i) "SEC" means the Securities and Exchange Commission.

         (j) "SOFTWARE" means computer software programs and software systems
(including, without limitation, all data, databases, compilations, tool sets,
related documentation and materials, whether in source code, object code or
human readable form and regardless of media).

         (k) "SPECIFIED POLICIES" shall mean the following insurance policies
(or the May 1, 2003 renewals thereof):

<TABLE>
<CAPTION>
Insurer                                            Policy Number          Limits
<S>                                                <C>                    <C>
1.    Associated Electric & Gas                    X0559A1A02             $35,000,000 excess of a
      Insurance Services (AEGIS)                                          $2,000,000 SIR

2.    Energy Insurance Mutual (EIM)                501184-01GL            $100,000,000 excess of
                                                                          AEGIS

3.    (a)     Lloyd's - 65%                        EL0200289              $100,000,000 excess of EIM
      (b)     Scor/General Security
      (c)     Indemnity Company - 5%
      (d)     Axis - 10%
      (e)     Swiss Re/SR International
      (f)     Business Insurance
      (g)     Company - 10%
      (h)     Atrium - 10%
</TABLE>

         (l) "TRANSACTION DOCUMENTS" shall mean the agreements, contracts,
documents, instruments and certificates provided for in this Agreement to be
entered into by one or more of the parties hereto or any of their Affiliates in
connection with the transactions contemplated by this Agreement.

                                       54

<PAGE>

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

         SELLER:                    WILLIAMS GAS PIPELINE COMPANY, LLC

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

         BUYER:                     LOEWS PIPELINE HOLDING CORP.

                                    By: /s/ Peter W. Keegan
                                        ----------------------------------------
                                    Name:   Peter W. Keegan
                                    Title:  Senior Vice President

         Parent is executing this Agreement solely with respect to its
obligations under Section 4.10.

         PARENT:                    THE WILLIAMS COMPANIES, INC.

                                    By: /s/ Mark D. Wilson
                                        ----------------------------------------
                                    Name:   Mark D. Wilson
                                    Title:  Senior Vice President

<PAGE>

                             Index of Defined Terms

<TABLE>
<S>                                                                                                                 <C>
1935 ACT.........................................................................................................          17
ADDITIONAL EMPLOYEES.............................................................................................          24
AFFILIATE........................................................................................................          53
AFFILIATE CONTRACTS..............................................................................................          12
AGREEMENT........................................................................................................           1
AVAILABLE EMPLOYEES..............................................................................................          24
BASE STATEMENT...................................................................................................           2
BUSINESS EMPLOYEES...............................................................................................          13
BUYER............................................................................................................           1
BUYER INDEMNIFIED PARTIES........................................................................................          43
BUYER TAX INDEMNITEES............................................................................................          32
BUYER'S 125 PLAN.................................................................................................          27
BUYER'S BONDS....................................................................................................          33
BUYERS SAVINGS PLAN..............................................................................................          26
CLOSING..........................................................................................................           1
CLOSING DATE.....................................................................................................           1
CLOSING STATEMENT................................................................................................           3
COBRA............................................................................................................          14
CODE.............................................................................................................           8
COMPANY..........................................................................................................           1
CONFIDENTIALITY AGREEMENT........................................................................................          30
CPA FIRM.........................................................................................................           4
CURRENT ASSETS...................................................................................................           2
CURRENT LIABILITIES..............................................................................................           2
DEDUCTIBLE.......................................................................................................          44
DEFINED BENEFIT PLAN.............................................................................................          14
ELECTION PERIOD..................................................................................................          46
EMPLOYEE PLANS...................................................................................................          13
ENCUMBRANCES.....................................................................................................           1
ENVIRONMENTAL LAW................................................................................................          17
ENVIRONMENTAL PERMITS............................................................................................          16
ERISA............................................................................................................          13
ESTIMATED PURCHASE PRICE.........................................................................................           2
ESTIMATED WORKING CAPITAL........................................................................................           2
EXCHANGE ACT.....................................................................................................           7
EXECUTION UPDATE.................................................................................................          29
FINAL CLOSING STATEMENT..........................................................................................           4
FINANCIAL STATEMENTS.............................................................................................           7
FORMS............................................................................................................          31
FUNDED DEBT......................................................................................................          53
GAAP.............................................................................................................           7
GOVERNMENTAL AUTHORITY...........................................................................................           6
HAZARDOUS MATERIAL...............................................................................................          17
HSR ACT..........................................................................................................          28
INDEMNIFIED PARTY................................................................................................          45
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                                 <C>
INDEMNIFYING PARTY...............................................................................................          45
INTELLECTUAL PROPERTY............................................................................................          53
IRS..............................................................................................................           7
IT ASSETS........................................................................................................          34
IT FIRM..........................................................................................................          35
IT MIGRATION PERIOD..............................................................................................          35
IT MIGRATION PLAN................................................................................................          34
IT MIGRATION TEAM................................................................................................          34
IT STANDARD......................................................................................................          34
KNOWLEDGE........................................................................................................          53
LEGAL PROCEEDING.................................................................................................          11
LICENSE..........................................................................................................          11
LICENSE PERIOD...................................................................................................          36
LICENSED SOFTWARE................................................................................................          35
LICENSES.........................................................................................................          11
LIST C CONTRACTS.................................................................................................          53
LLC..............................................................................................................          53
LOSS.............................................................................................................          43
MATERIAL ADVERSE EFFECT..........................................................................................          53
MATERIAL CONTRACTS...............................................................................................          12
MIRROR PLANS.....................................................................................................          28
NGA..............................................................................................................          17
OBJECTION........................................................................................................           3
ORGANIZATIONAL DOCUMENTS.........................................................................................           5
PARENT...........................................................................................................           1
PARENT CREDIT AGREEMENT..........................................................................................          37
PARENT GROUP.....................................................................................................          30
PBGC.............................................................................................................          14
PBO..............................................................................................................          24
PERMITTED ENCUMBRANCES...........................................................................................          10
PERSON...........................................................................................................          53
POLICIES.........................................................................................................          16
POST EXECUTION UPDATE............................................................................................          29
PROPERTY RESTRICTIONS............................................................................................           9
PURCHASE PRICE...................................................................................................           2
QUALIFIED BENEFICIARY............................................................................................          26
QUALIFYING EVENT.................................................................................................          26
REAL PROPERTY....................................................................................................           9
RETAINED ENTITIES................................................................................................          53
RETIREE PLAN PARTICIPANTS........................................................................................          28
REVIEW PERIOD....................................................................................................           3
RIGHTS-OF-WAY....................................................................................................           9
SEC..............................................................................................................          54
SEC REPORTS......................................................................................................           7
SECTION 338(h)(10) ELECTION......................................................................................          31
SECURITIES ACT...................................................................................................   7, 20, 37
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                                                 <C>
SELLER...........................................................................................................           1
SELLER INDEMNIFIED PARTIES.......................................................................................          44
SELLER SAVINGS PLAN..............................................................................................          26
SELLER TAX INDEMNITEES...........................................................................................          33
SELLER'S 125 PLAN................................................................................................          27
SELLER'S BONDS...................................................................................................          33
SELLER'S MARKS...................................................................................................          10
SHARES...........................................................................................................           1
SOFTWARE.........................................................................................................          54
SPECIFIED POLICIES...............................................................................................          54
STOCK TRANSFER...................................................................................................           1
STRADDLE PERIOD..................................................................................................          30
TAX..............................................................................................................           7
TAX CLAIM........................................................................................................          32
TAX RETURNS......................................................................................................           7
TAXES............................................................................................................           7
TGT SUB..........................................................................................................          53
THIRD PARTY CLAIM................................................................................................          45
TRANSACTION DOCUMENTS............................................................................................          54
TRANSFER TAXES...................................................................................................          31
TRANSFERRED EMPLOYEES............................................................................................          24
TRANSITION SERVICES AGREEMENT....................................................................................          35
WORKING CAPITAL..................................................................................................           2
</TABLE>

                                      iii

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