Document:

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                                                                     EXHIBIT 4.2

                         REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") is made and
entered into as of September 19, 2000 by and among Williams Communications
Group, Inc., a Delaware corporation (the "COMPANY"), Merrill Lynch & Co.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MERRILL LYNCH"), Salomon
Smith Barney Inc. ("SALOMON SMITH BARNEY") and Lehman Brothers Inc. ("LEHMAN
BROTHERS") and each of the other Initial Purchasers party to the Purchase
Agreement referred to below (collectively, the "INITIAL PURCHASERS"), for whom
Merrill Lynch, Salomon Smith Barney and Lehman Brothers are acting as
representatives (the "REPRESENTATIVES").

         This Agreement is made pursuant to the Purchase Agreement dated
September 14, 2000, among the Company and the Initial Purchasers (the "PURCHASE
AGREEMENT"), which provides for the sale by the Company to the Initial
Purchasers of up to 5,750,000 shares (including up to 750,000 shares that the
Company has granted the Initial Purchasers an option to purchase pursuant to the
Purchase Agreement) of its 6.75% Redeemable Cumulative Convertible Preferred
Stock, par value $.01 per share (the "PREFERRED STOCK"). The Preferred Stock
will be convertible into shares of Class A Common Stock, par value $0.01 per
share, of the Company (the "COMMON STOCK") at the conversion price set forth in
the Final Memorandum (as defined in the Purchase Agreement). For purposes of
this Agreement, the term "SECURITIES" refers to the Preferred Stock and all
shares of Common Stock issued on conversion thereof.

         In order to induce the Initial Purchasers to enter into the Purchase
Agreement, the Company has agreed to provide to the Initial Purchasers and their
direct and indirect transferees the registration rights with respect to the
Securities set forth in this Agreement. The execution of this Agreement is a
condition to the closing under the Purchase Agreement.

         In consideration of the foregoing, the parties hereto agree as follows:

         1. Definitions.

         As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

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         "1933 ACT" shall mean the Securities Act of 1933, as amended from time
to time.

         "1934 ACT" shall mean the Securities Exchange Act of 1934, as amended
from time to time.

         "CERTIFICATE OF DESIGNATIONS" shall mean the Certificate of
Designations relating to the Company's 6.75% Redeemable Cumulative Convertible
Preferred Stock, which sets forth the powers, preferences, rights,
qualifications, limitations and restrictions of the Preferred Stock.

         "CLOSING DATE" shall mean the Closing Date as defined in the Purchase
Agreement.

         "COMMON STOCK" shall have the meaning set forth in the preamble.

         "COMPANY" shall have the meaning set forth in the preamble and shall
also include the Company's successors.'

         "HOLDERS" shall mean the Initial Purchasers, for so long as they own
any Registrable Securities (except that for purposes of Section 4 hereof, the
Initial Purchasers shall always be considered Holders), and each of their
respective successors, assigns and direct and indirect transferees who become
registered owners of Registrable Securities.

         "INITIAL PURCHASERS" shall have the meaning set forth in the preamble.

         "MAJORITY HOLDERS" shall mean the Holders of a majority of the
aggregate principal amount of outstanding Registrable Securities; provided that,
for purposes of Section 5(b), whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or any of its affiliates (as such
term is defined in Rule 405 under the 1933 Act) (other than the Initial
Purchasers or subsequent Holders of Registrable Securities if such subsequent
holders are deemed to be such affiliates solely by reason of their holding such
Registrable Securities) shall not be counted in determining whether such consent
or approval was given by the Holders of such required percentage or amount.

         "PERSON" shall mean an individual, partnership, limited liability
company, corporation, trust or unincorporated organization, or a government or
agency or political subdivision thereof.

         "PREFERRED STOCK" shall have the meaning set forth in the preamble.

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         "PURCHASE AGREEMENT" shall have the meaning set forth in the preamble.

         "PROSPECTUS" shall mean the prospectus included in a Shelf Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to such prospectus, and in each case, including
all material incorporated by reference therein.

         "REGISTRABLE SECURITIES" shall mean the Securities; provided, however,
that the Securities shall cease to be Registrable Securities when (i) a Shelf
Registration Statement with respect to such Securities shall have been declared
effective under the 1933 Act and such Securities shall have been disposed of
pursuant to such Shelf Registration Statement, (ii) such Securities may be sold
to the public pursuant to Rule 144(k) (or any similar provision then in force,
but not Rule 144A) under the 1933 Act or (iii) such Securities shall have ceased
to be outstanding.

         "REGISTRATION DEFAULTS" shall mean the occurrence of any of the
following events:

         (i)      on or prior to the 90th day following the date of original
                  issuance of the Preferred Stock, a Shelf Registration
                  Statement has not been filed with the SEC,

         (ii)     on or prior to the 180th day following the date of original
                  issuance of the Preferred Stock, a Shelf Registration
                  Statement has not been declared effective by the SEC or

         (iii)    after a Shelf Registration Statement has been declared
                  effective by the SEC, such Shelf Registration Statement
                  thereafter ceases to be effective or usable (except as
                  provided in the second to last paragraph of Section 3) in
                  connection with resales of the Registrable Securities during
                  the period specified in the third sentence of Section 2(a);

provided, however, that a Registration Default shall cease to occur and be cured
under clause (i) above at such time as the Shelf Registration Statement is
filed; under cause (ii) above at such time as the Shelf Registration Statement
is declared effective by the SEC; and under clause (iii) above at such time as
the Shelf Registration Statement becomes effective or usable again after ceasing
to be effective or usable.

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         "REGISTRABLE SECURITIES" shall mean the Securities; provided, however,
that the Securities shall cease to be Registrable Securities when (i) a Shelf
Registration Statement with respect to such Securities shall have been declared
effective under the 1933 Act and such Securities shall have been disposed of
pursuant to such Shelf Registration Statement, (ii) such Securities may be sold
to the public pursuant to Rule 144(k) (or any similar provision then in force,
but not Rule 144A) under the 1933 Act or (iii) such Securities shall have ceased
to be outstanding.

         "REGISTRATION EXPENSES" shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement, including
without limitation: (i) all SEC, stock exchange or National Association of
Securities Dealers, Inc. registration and filing fees, (ii) all fees and
expenses incurred in connection with compliance with state securities or blue
sky laws (including reasonable fees and disbursements of counsel (not to exceed
$10,000) for any underwriters or Holders in connection with blue sky
qualification of any of the Exchange Securities or Registrable Securities),
(iii) all expenses of any Person in preparing or assisting in preparing, word
processing, printing and distributing, at the request of the Company, any Shelf
Registration Statement, any Prospectus, any amendments or supplements thereto,
any underwriting agreements, securities sales agreements and other documents
relating to the performance of and compliance with this Agreement, (iv) all
rating agency fees, (v) all fees and disbursements of the Transfer Agent, (vi)
the fees and disbursements of counsel for the Company and the fees and
disbursements of one counsel for the Holders incurred on or before the initial
effectiveness of the Shelf Registration Statement, which counsel shall be
counsel for the Initial Purchasers or other counsel selected by the Majority
Holders and satisfactory to the Company ("COUNSEL FOR THE HOLDERS"), (vii) the
fees and disbursements of the independent public accountants of the Company,
including the expenses of any special audits or "cold comfort" letters required
by or incident to such performance and compliance, but excluding underwriting
discounts, if any, and commissions and transfer taxes, if any, relating to the
sale or disposition of Registrable Securities by the Holders and (viii) the fees
and expenses of listing the Registrable Securities on any securities exchange or
quotation system in accordance with Section 3(n) hereof, but excluding
underwriting discounts, if any, and commissions and transfer taxes, if any,
relating to the sale or disposition of Registrable Securities by the Holders.

         "SEC" shall mean the Securities and Exchange Commission.

         "SECURITIES" shall have the meaning set forth in the preamble.

         "SHELF REGISTRATION" shall mean a registration effected pursuant to
Section 2(a) hereof.

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         "SHELF REGISTRATION STATEMENT" shall mean a "shelf" registration
statement of the Company pursuant to the provisions of Section 2(a) of this
Agreement which covers all of the Registrable Securities (except Registrable
Securities that the Holders have elected not to include in such Shelf
Registration Statement) or Securities that represent an unsold allotment for the
original offering thereof on an appropriate form under Rule 415 under the 1933
Act, or any similar rule that may be adopted by the SEC, and all amendments and
supplements to such registration statement, including post-effective amendments,
in each case, including the Prospectus contained therein, all exhibits thereto
and all material incorporated by reference therein.

         "TRANSFER AGENT" shall mean the transfer agent with respect to the
Securities.

         "UNDERWRITERS" shall have the meaning set forth in Section 3 hereof.

         "UNDERWRITTEN REGISTRATION" or "UNDERWRITTEN OFFERING" shall mean a
registration in which Registrable Securities are sold to an Underwriter for
reoffering to the public.

         2. Registration under the 1933 Act.

                  (a) The Company shall prepare, and not later than 90 days
         following the date of original issuance of the Preferred Stock, shall
         use its reasonable best efforts to cause to be filed with the SEC, a
         Shelf Registration Statement providing for the sale by the Holders of
         all of the Registrable Securities. The Company shall use its reasonable
         best efforts to have the Shelf Registration Statement declared
         effective by the SEC on or prior to the date that is 180 days after the
         date of original issuance of the Preferred Stock. The Company agrees to
         use its reasonable best efforts to keep the Shelf Registration
         Statement continuously effective until the expiration of the period
         referred to in Rule 144(k) under the 1933 Act with respect to the
         Registrable Securities or such shorter period that will terminate when
         all of the Registrable Securities covered by the Shelf Registration
         Statement have been sold pursuant to the Shelf Registration Statement.
         The Company further agrees to supplement or amend the Shelf
         Registration Statement if required by the rules, regulations or
         instructions applicable to the registration form used by the Company
         for such Shelf Registration Statement or by the 1933 Act or by any
         other rules and regulations thereunder for shelf registration or if
         reasonably requested by a Holder with respect to information relating
         to such Holder and required by applicable law to be included therein,
         and to use its reasonable best efforts to cause any such amendment to
         become effective and such Shelf

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         Registration Statement to become usable as soon thereafter as
         practicable. The Company agrees to furnish to the Holders of
         Registrable Securities copies of any such supplement or amendment
         promptly after its being used or filed with the SEC.

                  (b) The Company shall pay all Registration Expenses in
         connection with the registration pursuant to Section 2(a). Each Holder
         shall pay all underwriting discounts, if any, and commissions and
         transfer taxes, if any, relating to the sale or disposition of such
         Holder's Registrable Securities pursuant to the Shelf Registration
         Statement.

                  (c) The Shelf Registration Statement filed pursuant to Section
         2(a) hereof will not be deemed to have become effective unless it has
         been declared effective by the SEC; provided, however, that, if, after
         it has been declared effective, the offering of Registrable Securities
         pursuant to the Shelf Registration Statement is interfered with by any
         stop order, injunction or other order or requirement of the SEC or any
         other governmental agency or court, the Shelf Registration Statement
         will be deemed not to be effective during the period of such
         interference until the offering of Registrable Securities pursuant to
         the Shelf Registration Statement may legally resume.

                  (d) Upon the occurrence of a Registration Default, Holders
         will be entitled to receive special dividend payments as provided in
         the Certificate of Designations.

                  (e) Without limiting the remedies available to the Initial
         Purchasers and the Holders, the Company acknowledges that any failure
         by the Company to comply with its obligations under Section 2(a) hereof
         may result in material irreparable injury to the Initial Purchasers or
         the Holders for which there is no adequate remedy at law, that it will
         not be possible to measure damages for such injuries precisely and
         that, in the event of any such failure, the Initial Purchasers or any
         Holder may obtain such relief as may be required to specifically
         enforce the Company's obligations under Section 2(a) hereof.

         3. Registration Procedures.

         In connection with the obligations of the Company with respect to the
Shelf Registration Statement pursuant to Section 2(a) hereof, the Company shall
reasonably promptly:

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                  (a) prepare and file with the SEC a Shelf Registration
         Statement on the appropriate form under the 1933 Act, which form shall
         (x) be selected by the Company, (y) be available for the sale of the
         Registrable Securities by the selling Holders thereof and (z) comply as
         to form in all material respects with the requirements of the
         applicable form and include all financial statements required by the
         SEC to be filed therewith, and use its reasonable best efforts to cause
         the Shelf Registration Statement to become effective and remain
         effective in accordance with Section 2 hereof;

                  (b) prepare and file with the SEC such amendments and
         post-effective amendments to the Shelf Registration Statement as may be
         necessary to keep the Shelf Registration Statement effective for the
         applicable period and cause each Prospectus to be supplemented by any
         required prospectus supplement and, as so supplemented, to be filed
         pursuant to Rule 424 under the 1933 Act; and keep each Prospectus
         current during the period described under Section 4(3) and Rule 174
         under the 1933 Act that is applicable to transactions by brokers or
         dealers with respect to the Registrable Securities;

                  (c) furnish to each Holder of Registrable Securities, to
         counsel for the Holders and for the Initial Purchasers (or, if
         applicable, separate counsel for the Holders) and to each Underwriter
         of an Underwritten Offering of Registrable Securities, if any, without
         charge, as many copies of each Prospectus, including each preliminary
         Prospectus and any amendment or supplement thereto and such other
         documents as such Holder or Underwriter may reasonably request, in
         order to facilitate the public sale or other disposition of the
         Registrable Securities; and the Company consents to the use of such
         Prospectus and any amendment or supplement thereto in accordance with
         applicable law by each of the selling Holders of Registrable Securities
         and any such Underwriters in connection with the offering and sale of
         the Registrable Securities covered by and in the manner described in
         such Prospectus or any amendment or supplement thereto in accordance
         with applicable law;

                  (d) use its reasonable best efforts (i) to register or qualify
         the Registrable Securities under all applicable state securities or
         "blue sky" laws of such jurisdictions as any Holder of Registrable
         Securities covered by the Shelf Registration Statement shall reasonably
         request in writing by the time the Shelf Registration Statement is
         declared effective by the SEC and (ii) to cooperate with such Holders
         in connection with any filings required to be made with the National
         Association of Securities Dealers, Inc. and do any and all other acts
         and things which may be reasonably

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         necessary or advisable to enable such Holder to consummate the
         disposition in each such jurisdiction of such Registrable Securities
         owned by such Holder; provided, however, that the Company shall not be
         required to (A) register or qualify as a foreign corporation or as a
         dealer in securities in any jurisdiction where it would not otherwise
         be required to register or qualify but for this Section, (B) file any
         general consent to service of process or (C) subject itself to taxation
         in any such jurisdiction if it is not so subject;

                  (e) notify each Holder of Registrable Securities, counsel for
         the Holders and for the Initial Purchasers (or, if applicable, separate
         counsel for the Holders) promptly and, if requested by such Persons,
         confirm such advice in writing, (i) when the Shelf Registration
         Statement has become effective and when any post-effective amendment
         thereto has been filed and becomes effective, (ii) of any request by
         the SEC or any state securities authority for amendments and
         supplements to the Shelf Registration Statement and Prospectus or for
         additional information after the Shelf Registration Statement has
         become effective, (iii) of the issuance by the SEC or any state
         securities authority of any stop order suspending the effectiveness of
         the Shelf Registration Statement or the initiation of any proceedings
         for that purpose, (iv) if, between the effective date of the Shelf
         Registration Statement and the closing of any sale of Registrable
         Securities covered thereby, the Company receives any notification with
         respect to the suspension of the qualification of the Registrable
         Securities for sale in any jurisdiction or the initiation of any
         proceeding for such purpose, (v) of the happening of any event during
         the period the Shelf Registration Statement is effective which makes
         any statement made in the Shelf Registration Statement or the related
         Prospectus untrue in any material respect or which requires the making
         of any changes in the Shelf Registration Statement or Prospectus in
         order to make the statements therein not misleading and (vi) of any
         determination by the Company that a post-effective amendment to the
         Shelf Registration Statement would be appropriate;

                  (f) make every reasonable effort to obtain the withdrawal of
         any order suspending the effectiveness of the Shelf Registration
         Statement at the earliest possible moment and provide prompt notice to
         each Holder of the withdrawal of any such order;

                  (g) furnish to each Holder of Registrable Securities, upon
         request and without charge, at least one conformed copy of the Shelf
         Registration Statement and any post-effective amendment thereto
         (without documents incorporated therein by reference or exhibits
         thereto, unless requested);

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                  (h) cooperate with the selling Holders of Registrable
         Securities to facilitate the timely preparation and delivery of
         certificates representing Registrable Securities to be sold and not
         bearing any restrictive legends (unless required by applicable
         securities laws) and enable such Registrable Securities to be in such
         denominations and registered in such names as the selling Holders may
         reasonably request at least two business days prior to the closing of
         any sale of Registrable Securities;

                  (i) upon the occurrence of any event contemplated by Section
         3(e) hereof that so requires, use its reasonable best efforts to
         prepare and file with the SEC a supplement or post-effective amendment
         to the Shelf Registration Statement or the related Prospectus or any
         document incorporated therein by reference or file any other required
         document so that, as thereafter delivered to the purchasers of the
         Registrable Securities, such Prospectus will not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements therein, in the light of the circumstances under
         which they were made, not misleading. The Company agrees to notify the
         Holders to suspend use of the Prospectus as promptly as practicable
         after the occurrence of such an event, and the Holders hereby agree to
         suspend use of the Prospectus until the Company has amended or
         supplemented the Prospectus to correct such misstatement or omission;

                  (j) a reasonable time prior to the filing of the Shelf
         Registration Statement, any Prospectus, any amendment to the Shelf
         Registration Statement or amendment or supplement to a Prospectus, or
         any document which is to be incorporated by reference into the Shelf
         Registration Statement or Prospectus after the initial filing of the
         Shelf Registration Statement, upon request, provide copies of such
         document to the Initial Purchasers and their counsel (and counsel for
         the Holders) and make such of the representatives of the Company as
         shall be reasonably requested by the Initial Purchasers or their
         counsel (and counsel for the Holders) available for discussion of such
         document, and shall not at any time file or make any amendment to the
         Shelf Registration Statement, any Prospectus or any amendment of or
         supplement to the Shelf Registration Statement or a Prospectus or any
         document which is to be incorporated by reference into the Shelf
         Registration Statement or a Prospectus, of which the Initial Purchasers
         and their counsel (and counsel for the Holders) shall not have
         previously been advised and furnished a copy or to which the Initial
         Purchasers or their counsel (and counsel for the Holders) shall
         reasonably object within five business days after receipt thereof;

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                  (k) obtain a CUSIP number for all Registrable Securities not
         later than the effective date of the Shelf Registration Statement;

                  (l) make available for inspection by a representative of the
         Holders of the Registrable Securities, any Underwriter participating in
         any disposition pursuant to the Shelf Registration Statement, and
         counsel for the Holders, at reasonable times and in a reasonable
         manner, all financial and other records, pertinent documents and
         properties of the Company, and cause the respective officers, directors
         and employees of the Company to supply all information reasonably
         requested by any such representative, Underwriter, attorney or
         accountant in connection with the Shelf Registration Statement, in each
         case, that would customarily be reviewed or examined in connection with
         a "DUE DILIGENCE" review of the Company;

                  (m) if reasonably requested by any Holder of Registrable
         Securities covered by the Shelf Registration Statement, (i) promptly
         incorporate in a Prospectus supplement or post-effective amendment such
         information with respect to such Holder as is required to be included
         therein in accordance with applicable law and (ii) make all required
         filings of such Prospectus supplement or such post-effective amendment
         as soon as the Company has received notification of the matters to be
         incorporated in such filing;

                  (n) cause all Registrable Securities covered by the Shelf
         Registration Statement (i) that consist of Common Stock to be listed on
         each securities exchange or quotation system on which similar
         securities issued by the Company are then listed, if so requested by
         the Majority Holders and (ii) that consist of Preferred Stock to be
         rated with the appropriate rating agencies, if so requested by the
         Majority Holders; and

                  (o) in the case of an Underwritten Offering pursuant to the
         Shelf Registration, upon the request of the Majority Holders of
         Registrable Securities included therein, enter into such customary
         agreements and take all such other customary actions in connection
         therewith (including those reasonably requested by counsel for the
         Holders) in order to expedite or facilitate the disposition of such
         Registrable Securities and in such connection, (i) to the extent
         possible, make such reasonable representations and warranties to the
         Holders and any Underwriters of such Registrable Securities with
         respect to the business of the Company and its subsidiaries, the Shelf
         Registration Statement, Prospectus and documents incorporated by
         reference or deemed incorporated by reference, if any, in each case, in
         form, substance and scope as are customarily made by issuers to
         underwriters in underwritten offerings and confirm the same

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         if and when requested, (ii) obtain opinions of counsel to the Company
         (which counsel and opinions, in form, scope and substance, shall be
         reasonably satisfactory to the selling Holders and such Underwriters
         and their respective counsel) addressed to each selling Holder and
         Underwriter of Registrable Securities, covering the matters customarily
         covered in opinions requested in underwritten offerings, (iii) obtain
         "cold comfort" letters from the independent certified public
         accountants of the Company (and, if necessary, any other certified
         public accountant of any subsidiary of the Company, or of any business
         acquired by the Company for which financial statements and financial
         data are or are required to be included in the Shelf Registration
         Statement) addressed to each selling Holder and Underwriter of
         Registrable Securities, such letters to be in customary form and
         covering matters of the type customarily covered in "cold comfort"
         letters in connection with underwritten offerings, and (iv) deliver
         such documents and certificates as may be reasonably requested by
         counsel for the Holders to evidence the continued validity of the
         representations and warranties of the Company made pursuant to clause
         (i) above and to evidence compliance with any customary conditions
         contained in an underwriting agreement. In the case of any Underwritten
         Offering, the Company shall provide written notice to the Holders of
         all Registrable Securities of such Underwritten Offering at least 15
         days prior to the filing of a prospectus supplement for such
         Underwritten Offering. Such notice shall (x) offer each such Holder the
         right to participate in such Underwritten Offering, (y) specify a date,
         which shall be no earlier than 5 days following the date of such
         notice, by which such Holder must inform the Company of its intent to
         participate in such Underwritten Offering and (z) include the
         instructions such Holder must follow in order to participate in such
         Underwritten Offering.

         The Company may require each Holder of Registrable Securities to
promptly furnish to the Company such information regarding the Holders and the
proposed distribution by such Holder of such Registrable Securities as the
Company may from time to time reasonably request in writing. Notwithstanding
anything herein to the contrary, no Holder of Registrable Securities may include
any of its Registrable Securities in any Shelf Registration Statement pursuant
to this Agreement unless and until such Holder (i) furnishes to the Company in
writing the information specified in Items 507 and 508 of Regulation S-K, as
applicable, of the 1933 Act for use in connection with any Shelf Registration
Statement or Prospectus or preliminary prospectus included therein, (ii) agrees
to promptly furnish additional information required to be disclosed in order to
make the information previously furnished to the Company by such Holder not
materially misleading and (iii) at the Company's request, acknowledges in
writing

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its agreement to be bound by the provisions of this Agreement in accordance with
Section 5(d) hereof.

         Each Holder agrees that, upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 3(e) hereof, such
Holder will forthwith discontinue disposition of Registrable Securities pursuant
to the Shelf Registration Statement until such Holder's receipt of the copies of
the supplemented or amended Prospectus contemplated by Section 3(i) hereof, and,
if so directed by the Company, such Holder will deliver to the Company (at its
expense) all copies in its possession, other than permanent file copies then in
such Holder's possession, of the Prospectus covering such Registrable Securities
current at the time of receipt of such notice. If the Company shall give any
such notice to suspend the disposition of Registrable Securities pursuant to the
Shelf Registration Statement, the Company shall extend the period during which
the Shelf Registration Statement shall be maintained effective pursuant to this
Agreement by the number of days during the period from and including the date of
the giving of such notice to and including the date when the Holders shall have
received copies of the supplemented or amended Prospectus necessary to resume
such dispositions.

         The Holders of Registrable Securities covered by the Shelf Registration
Statement who desire to do so may sell such Registrable Securities in an
Underwritten Offering. In any such Underwritten Offering, the investment banker
or investment bankers and manager or managers (the "UNDERWRITERS") that will
administer the offering will be selected by the Majority Holders of the
Registrable Securities included in such offering and shall be reasonably
acceptable to the Company.

         4. Indemnification and Contribution.

                  (a) The Company agrees to indemnify and hold harmless the
         Initial Purchasers, each affiliate of an Initial Purchaser which
         participated in the distribution of the Securities, each of their
         respective directors, officers and employees, each other Holder and
         each Person, if any, who controls the Initial Purchasers or any other
         Holder within the meaning of either Section 15 of the 1933 Act or
         Section 20 of the 1934 Act, from and against any and all losses,
         claims, damages and liabilities (including without limitation the
         reasonable legal fees and other expenses incurred in connection with
         any suit, action or proceeding or any claim asserted) arising out of or
         based upon any untrue statement or alleged untrue statement of a
         material fact contained in the Shelf Registration Statement (or any
         amendment thereto pursuant to which Registrable Securities were
         registered under the 1933 Act, including all documents incorporated

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         therein by reference), or arising out of or based upon any omissions or
         alleged omission to state therein a material fact required to be stated
         therein or necessary to make the statements therein not misleading, or
         arising out of or based upon any untrue statement or alleged untrue
         statement of a material fact contained in any Prospectus (as amended or
         supplemented if the Company shall have furnished any amendments or
         supplements thereto, including all documents incorporated therein by
         reference), or arising out of or based upon any omission or alleged
         omission to state therein a material fact necessary to make the
         statements therein, in the light of the circumstances under which they
         were made, not misleading, except insofar as such losses, claims,
         damages or liabilities arise out of or are based upon any untrue
         statement or omission or alleged untrue statement or omission which has
         been made therein or omitted therefrom in reliance upon and in
         conformity with the information relating to such Initial Purchasers or
         other Holder furnished in writing to the Company by or on behalf of any
         Initial Purchaser or other Holder expressly for use in connection
         therewith; provided, however, that the Company shall not be liable
         under the indemnity agreement provided in this subsection (a) to any
         Initial Purchaser, other Holder or controlling person with respect to
         any preliminary prospectus to the extent that the Company shall sustain
         the burden of proving that any such loss, claim, damage or liability
         resulted from the fact that such Initial Purchaser, other Holder or
         controlling person, in contravention of a requirement of applicable
         law, sold Registrable Securities to a person to whom such Initial
         Purchaser, other Holder or controlling person failed to send or give,
         on or prior to the closing date of such sale, a copy of the final
         Prospectus, as then amended or supplemented, if (i) the Company has
         previously furnished copies thereof (sufficiently in advance of such
         closing date to allow for distribution by the closing date) to such
         Initial Purchaser, other Holder or controlling person, and the loss,
         claim, damage or liability of such Initial Purchaser, other Holder or
         controlling person resulted from an untrue statement or omission of a
         material fact contained in or omitted from the preliminary prospectus
         that was corrected in the final Prospectus as, if applicable, amended
         or supplemented prior to such closing date, and such final Prospectus
         was required by law to be delivered at or prior to the written
         confirmation of sale to such person and (ii) such failure to give or
         send such final Prospectus by such closing date to the party or parties
         asserting such loss, claim, damage or liability would have constituted
         a defense to the claim asserted by such person.

                  (b) Each Holder agrees, severally and not jointly, to
         indemnify and hold harmless the Company, the Initial Purchasers, each
         affiliate of an Initial Purchaser which participated in the
         distribution of the Securities and

                                       13
<PAGE>   14

         each other selling Holder, and each of their respective directors,
         officers who sign the Shelf Registration Statement, and any Person who
         controls the Company, any Initial Purchaser and each other selling
         Holder within the meaning of Section 15 of the Act or Section 20 of the
         1934 Act, to the same extent as the foregoing indemnity from the
         Company to the Initial Purchasers and other Holders, but only with
         respect to such untrue statements or omissions, or such alleged untrue
         statements or omissions, contained in the Shelf Registration Statement
         (or any such amendment thereto) in reliance upon and in conformity with
         information relating to such Initial Purchaser or other Holder
         furnished in writing by or on behalf of such Initial Purchaser or other
         Holder expressly for use in the Shelf Registration Statement (or any
         amendment thereto) or any Prospectus (or any amendment or supplement
         thereto).

                  (c) If any suit, action, proceeding (including any
         governmental or regulatory investigation), claim or demand shall be
         brought or asserted against any Person in respect of which indemnity
         may be sought pursuant to either of the two preceding paragraphs, such
         Person (the "INDEMNIFIED PERSON") shall promptly notify the Person
         against whom such indemnity may be sought (the "INDEMNIFYING PERSON")
         in writing, and the Indemnifying Person, upon request of the
         Indemnified Person, shall retain counsel reasonably satisfactory to the
         Indemnified Person to represent the Indemnified Person and any others
         the Indemnifying Person may designate in such proceeding and shall pay
         the reasonable fees and expenses of such counsel related to such
         proceeding. The Indemnifying Person may participate at its own expense
         in the defense of any such action and, to the extent that it wishes,
         jointly with any other similarly notified Indemnifying Person, assume
         the defense thereof. After notice from the Indemnifying Person to the
         Indemnified Person of its election to assume the defense of such claim
         or action, the Indemnifying Person shall not be liable to the
         Indemnified Person under this Section 4 for any legal or other expenses
         subsequently incurred by the Indemnified Person in connection with the
         defense thereof other than the reasonable costs of investigation.
         Notwithstanding the foregoing, in any such proceeding, any Indemnified
         Person shall have the right to retain its own counsel, but the fees and
         expenses of such counsel shall be at the expense of such Indemnified
         Person unless (i) the Indemnifying Person and the Indemnified Person
         shall have mutually agreed to the contrary, (ii) the Indemnifying
         Person has failed within a reasonable time to retain counsel reasonably
         satisfactory to the Indemnified Person or (iii) the named parties in
         any such proceeding (including any impleaded parties) include both the
         Indemnifying Person and the Indemnified Person and representation of
         both parties by the same counsel would be inappropriate due to actual
         or

                                       14
<PAGE>   15

         potential differing interests between them. It is understood that the
         Indemnifying Person shall not, in connection with any proceeding or
         related proceeding in the same jurisdiction, be liable for (a) the fees
         and expenses of more than one separate firm (in addition to any local
         counsel) for the Initial Purchasers and all Persons, if any, who
         control the Initial Purchasers within the meaning of either Section 15
         of the 1933 Act or Section 20 of the 1934 Act, (b) the fees and
         expenses of more than one separate firm (in addition to any local
         counsel) for the Company, its directors, its officers who sign the
         Shelf Registration Statement and each Person, if any, who controls the
         Company within the meaning of either such Section and (c) the fees and
         expenses of more than one separate firm (in addition to any local
         counsel) for all Holders and all Persons, if any, who control any
         Holders within the meaning of either such Section. Any such separate
         firm for the Initial Purchasers and such control Persons of Initial
         Purchasers shall be designated in writing by the Representatives, any
         such separate firm for the Holders and such Persons who control Holders
         shall be designated in writing by the Majority Holders and any such
         separate firm for the Company, its directors, its officers and such
         control Persons of the Company shall be designated in writing by the
         Company. The Indemnifying Person shall not be liable for any settlement
         of any proceeding effected without its written consent, but if settled
         with such consent or if there be a final judgment for the plaintiff,
         the Indemnifying Person agrees to indemnify any Indemnified Person from
         and against any loss or liability by reason of such settlement or
         judgment. No Indemnifying Person shall, without the prior written
         consent of the Indemnified Person, effect any settlement of any pending
         or threatened proceeding in respect of which any Indemnified Person is
         or could have been a party and indemnity could have been sought
         hereunder by such Indemnified Person, unless such settlement includes
         an unconditional release of such Indemnified Person from all liability
         on claims that are the subject matter of such proceeding.

                  (d) If the indemnification provided for in this Section is
         unavailable to an Indemnified Person under paragraphs (a) or (b) hereof
         in respect of any losses, claims, damages or liabilities referred to
         therein, then an Indemnifying Person, in lieu of indemnifying such
         Indemnified Person, shall contribute to the amount paid or payable by
         such Indemnified Person as a result of such losses, claims, damages or
         liabilities in such proportion as is appropriate to reflect the
         relative fault of the Company on the one hand and the Holders on the
         other hand in connection with the statements or omissions that resulted
         in such losses, claims, damages or liabilities, as well as any other
         relevant equitable considerations. The relative fault of the Company on
         the one hand and the Holders on the other

                                       15
<PAGE>   16

         hand shall be determined by reference to, among other things, whether
         the untrue or alleged untrue statement of a material fact or the
         omission or alleged omission to state a material fact relates to
         information supplied by the Company on the one hand or by the Holders
         on the other hand and the parties' relative intent, knowledge, access
         to information and opportunity to correct or prevent such statement or
         omission.

                  (e) The Company and each Holder agree that it would not be
         just or equitable if contribution pursuant to this Section were
         determined by pro rata allocation or by any other method of allocation
         that does not take account of the equitable considerations referred to
         in paragraph 4(d) above. The amount paid or payable by an Indemnified
         Person as a result of the losses, claims, damages and liabilities
         referred to in paragraph 4(d) above shall be deemed to include, subject
         to the limitations set forth above, any reasonable legal or other
         expenses incurred by such Indemnified Person in connection with
         investigating or defending any such action or claim. Notwithstanding
         the provisions of this Section, no Holder shall be required to
         contribute any amount in excess of the amount by which the total price
         at which Registrable Securities were sold by such Holder exceeds the
         amount of any damages that such Holder has otherwise been required to
         pay by reason of such untrue or alleged untrue statement or omission or
         alleged omission. No Person guilty of fraudulent misrepresentation
         (within the meaning of Section 11(f) of the 1933 Act) shall be entitled
         to contribution from any Person who was not guilty of such fraudulent
         misrepresentation. The Holders' respective obligations to contribute
         pursuant to this Section are several in proportion to the aggregate
         principal amount of Registrable Securities sold by them pursuant to the
         Shelf Registration Statement. The remedies provided for in this Section
         are not exclusive and shall not limit any rights or remedies which may
         otherwise be available to any Indemnified Party at law or in equity.

                  (f) Any losses, claims, damages or liabilities for which an
         Indemnified Person is entitled to indemnification or contribution under
         this Section shall be paid by the Indemnifying Person to the
         Indemnified Person as such losses, claims, damages or liabilities are
         incurred. The indemnity and contribution agreements contained in this
         Section and the representations and warranties of the Company set forth
         in this Agreement shall remain operative and in full force and effect,
         regardless of (i) any investigation made by or on behalf of any Initial
         Purchaser, any Holder or any Person controlling any Initial Purchaser,
         any Holder, the Company's directors or officers or any Person
         controlling the Company, (ii) any

                                       16
<PAGE>   17

         termination of this Agreement and (iii) any sale of Registrable
         Securities pursuant to the Shelf Registration Statement.

         5. Miscellaneous.

                  (a) No Inconsistent Agreements. The Company has not entered
         into, and on or after the date of this Agreement will not enter into,
         any agreement which is inconsistent with the rights granted to the
         Holders of Registrable Securities in this Agreement or otherwise
         conflicts with the provisions hereof. The rights granted to the Holders
         hereunder do not in any way conflict with and are not inconsistent with
         the rights granted to the holders of the Company's other issued and
         outstanding securities under any such agreements.

                  (b) Amendments and Waivers. The provisions of this Agreement,
         including the provisions of this sentence, may not be amended, modified
         or supplemented, and waivers or consents to departures from the
         provisions hereof may not be given unless the Company has obtained the
         written consent of Holders of at least a majority in aggregate
         principal amount of the outstanding Registrable Securities affected by
         such amendment, modification, supplement, waiver or consent; provided,
         however, that no amendment, modification, supplement, waiver or consent
         to any departure from the provisions of Section 4 hereof shall be
         effective as against any Holder of Registrable Securities unless
         consented to in writing by such Holder.

                  (c) Notices. All notices and other communications provided for
         or permitted hereunder shall be made in writing by hand-delivery,
         registered first-class mail, telex, telecopier, or any courier
         guaranteeing overnight delivery (i) if to a Holder, at the most current
         address given by such Holder to the Company by means of a notice given
         in accordance with the provisions of this Section, which address
         initially is, with respect to the Initial Purchasers, the address set
         forth in the Purchase Agreement; and (ii) if to the Company, initially
         at the Company's address set forth in the Purchase Agreement and
         thereafter at such other address, notice of which is given in
         accordance with the provisions of this Section.

         All such notices and communications shall be deemed to have been duly
given at the time delivered, if personally delivered; five business days after
being deposited in the mail, postage pre-paid, if mailed; when receipt is
acknowledged, if telecopied; and on the next business day if timely delivered to
an air courier guaranteeing overnight delivery.

                                       17
<PAGE>   18

         Copies of all such notices, demands, or other communications shall be
concurrently delivered by the Person giving the same to the Trustee, at the
address specified in the relevant Indenture.

                  (d) Successors and Assigns. This Agreement shall inure to the
         benefit of and be binding upon the successors, assigns and transferees
         of each of the parties, including, without limitation and without the
         need for an express assignment or assumption, subsequent Holders;
         provided that nothing herein shall be deemed to permit any assignment,
         transfer or other disposition of Registrable Securities in violation of
         the terms of the Purchase Agreement. If any transferee of any Holder
         shall acquire Registrable Securities, in any manner, whether by
         operation of law or otherwise, such Registrable Securities shall be
         held subject to all of the terms of this Agreement and by taking and
         holding such Registrable Securities, such Person shall be conclusively
         deemed to have agreed to be bound by and to perform all of the terms
         and provisions of this Agreement and such Person shall be entitled to
         the benefits hereof. The Initial Purchasers shall have no liability or
         obligation to the Company with respect to any failure by any other
         Holder to comply with, or any breach by any other Holder of, the
         obligations of such Holder under this Agreement.

                  (e) Purchases and Sales of Securities. The Company shall not,
         and shall cause its affiliates (as defined in rule 405 under the 1993
         Act) not to, purchase and then resell or otherwise transfer any
         Securities other than to the Company or its affiliates.

                  (f) Third Party Beneficiary. Each Holder shall be a third
         party beneficiary to the agreements made hereunder between the Company,
         on the one hand, and the Initial Purchasers, on the other hand, and
         shall have the right to enforce such agreements directly to the extent
         it deems such enforcement necessary or advisable to protect its rights
         or the rights of Holders hereunder.

                  (g) Counterparts. This Agreement may be executed in any number
         of counterparts and by the parties hereto in separate counterparts,
         each of which when so executed shall be deemed to be an original and
         all of which taken together shall constitute one and the same
         agreement.

                  (h) Headings. The headings in this Agreement are for
         convenience of reference only and shall not limit or otherwise affect
         the meaning hereof.

                                       18
<PAGE>   19

                  (i) Governing Law. This Agreement shall be governed by laws of
         the State of New York.

                  (j) Severability. In the event that one or more of the
         provisions contained herein, or the application thereof in any
         circumstances, is held invalid, illegal or unenforceable, the validity,
         legality and enforceability of any such provision in every other
         respect and of the remaining provisions contained herein shall not be
         affected or impaired thereby.

                                       19
<PAGE>   20

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

                                    WILLIAMS COMMUNICATIONS GROUP, INC.

                                    By  /s/ HOWARD S. KALIKA
                                       -----------------------------------------
                                       Name:  Howard S. Kalika
                                       Title: Vice President

MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH
            INCORPORATED
SALOMON SMITH BARNEY INC.
LEHMAN BROTHERS INC.

For themselves and as Representatives of
the other Initial Purchasers

By:  MERRILL LYNCH, PIERCE, FENNER & SMITH
                  INCORPORATED

By  /s/ MARK C. BRUEGGER
   -----------------------------------
   Name:  Mark C. Bruegger
   Title: Vice President, [ILLEGIBLE]

By:  SALOMON SMITH BARNEY INC.

By  /s/ RICHARD BLACKETT
   -----------------------------------
   Name:  Richard Blackett
   Title: Managing Director

By: LEHMAN BROTHERS INC.

By  /s/ LAWRENCE M. BAND
   -----------------------------------
   Name:  Lawrence M. Band
   Title: Managing Director<PAGE>   1

                                                                    EXHIBIT (4a)

                                     BY-LAWS

                                       OF

                                 USG CORPORATION

                                   (DELAWARE)

                            AS OF SEPTEMBER 22, 2000

<PAGE>   2

                                     BY-LAWS
                                       OF
                                 USG CORPORATION

                                    ARTICLE I

                                     OFFICES

         The principal office of the corporation in the State of Delaware shall
be in the City of Wilmington, County of New Castle. The corporation may have
such other offices, either within or without the State of Delaware, as the
business of the corporation may require from time to time.

                                   ARTICLE II

                                  STOCKHOLDERS

                                 ANNUAL MEETING

         Section 1. The date and time of the annual meetings of stockholders
shall be determined by or under the authority of the board of directors as
permitted by law for the purpose of electing directors and the transaction of
such other business as may properly come before the meeting. If the election of
directors shall not be held on the date designated for any such annual meeting
or at any adjournment thereof, the board of directors shall cause the election
to be held at a special meeting of the stockholders as soon thereafter as
conveniently may be.

                                SPECIAL MEETINGS

         Section 2. Special meetings of the stockholders may be called at any
time by the chief executive officer of the corporation or by the corporate
secretary upon a request in writing of a majority of the board of directors.
Such request shall state the purpose or purposes of the proposed meeting.

                                PLACE OF MEETINGS

         Section 3. All meetings of the stockholders for the election of
directors shall be held in the City of Chicago, State of Illinois, or at such
other place as may be fixed from time to time by the board of directors.
Meetings of stockholders for any other purpose may be held at such time and
place, within or without the State of Delaware, as shall be stated in the notice
of the meeting or in a duly executed waiver of notice thereof.

                                      -2-
<PAGE>   3

                               NOTICE OF MEETINGS

         Section 4. Written notice stating the place, day and hour of the
meeting, and in the case of a special meeting the purpose or purposes for which
the meeting is called, shall be given by mail to each stockholder entitled to
vote thereat not less than ten (10) days, nor more than sixty (60) days before
the date of the meeting. Such notice, when mailed, shall be deemed to be
delivered when deposited in the United States mail in a sealed envelope
addressed to the stockholder at his address as it appears on the records of the
corporation, with postage prepaid.

                           QUORUM, VOTE AND PROCEDURES

         Section 5. (a) The holders of a majority of the stock issued and
outstanding and entitled to vote thereat, present in person or represented by
proxy, shall constitute a quorum at all meetings of the stockholders for the
transaction of business except as otherwise provided by statute or by the
certificate of incorporation. If, however, such quorum shall not be present or
represented at any meeting of the stockholders, the stockholders entitled to
vote thereat, present in person or represented by proxy, shall have power to
adjourn the meeting from time to time, without notice other than announcement at
the meeting, until a quorum shall be present or represented. At such adjourned
meeting at which a quorum shall be present or represented, any business may be
transacted which might have been transacted at the meeting as originally
scheduled.

                    (b) When a quorum is present at any  meeting,  the vote of
the holders of a majority of the stock having voting power present in person or
represented by proxy shall decide any question brought before such meeting,
unless the question is one upon which by express provision of the statutes or of
the certificate of incorporation, a different vote is required in which case
such express provision shall govern and control the decision of such question.

                    (c) The conduct of all meetings of the stockholders
generally shall be in accordance with customary rules of parliamentary
procedure. Subject to the requirements of Sections 11 and 12 of this Article II,
any matter to be presented for consideration and with a view to obtaining a vote
thereon at any such meeting shall be introduced by a motion, and any such motion
shall be seconded before such consideration may begin or before any such vote
may be obtained.

                                      -3-
<PAGE>   4

                             ORGANIZATION OF MEETING

         Section 6. The chairman of the board of directors, or in his absence
the president of the corporation, or in his absence the vice chairmen of the
corporation in the chronological order of their election to that office, or in
their absence the executive vice presidents, senior vice presidents, or vice
presidents in that order and in order of their election, shall preside as
chairman of all meetings of the stockholders. In the absence of all such
persons, the meeting shall select, by majority vote, a stockholder present at
the meeting to act as chairman. The corporate secretary of the corporation, or
in his absence an assistant secretary, shall act as secretary of all meetings of
the stockholders, and in the absence of the corporate secretary or an assistant
secretary, the chairman shall appoint some other person to act as secretary of
the meeting.

                                 VOTING OF STOCK

         Section 7. On each matter submitted to a vote at a meeting of the
stockholders, each holder of common stock shall be entitled to one vote in
person or by proxy for each share of common stock held by the stockholder. No
proxy shall be voted after three years from its date unless otherwise provided
in the proxy, and, except where the transfer books of the corporation have been
closed or a date has been fixed as a record date for the determination of its
stockholders entitled to vote, no share of stock shall be voted at any election
for directors which has been transferred on the books of the corporation within
twenty (20) days next preceding such election of directors. In all elections for
directors each stockholder shall have the right to vote, in person or by proxy,
the number of shares owned by him for as many persons as there are directors to
be elected.

                       VOTING OF SHARES BY CERTAIN HOLDERS

         Section 8. (a) Each share standing in the name of another corporation,
domestic or foreign, may be voted by such officer, agent or proxy as the by-laws
of such corporation may prescribe or, in the absence of such by-law provisions,
as the board of directors of such corporation may determine.

                    (b) Shares standing in the name of a deceased person may be
voted by his administrator or executor either in person or by proxy. Persons
holding stock in a fiduciary capacity may vote the shares so held in person or
by proxy. Shares standing in the name of a receiver may be voted by such
receiver, and shares held by or under the control of a receiver may be voted by
such receiver without the transfer thereof into his name if authority so to do
be contained in an appropriate order of the court by which such receiver was
appointed. A stockholder whose shares are pledged shall be entitled to vote such
shares in person or by proxy, unless in the transfer by the pledgor on the books
of the corporation he has expressly empowered the pledgee to vote thereon, in
which case only the pledgee or his proxy may represent the stock and vote
thereon.

                    (c) Shares of stock of this corporation belonging to the
corporation shall not be voted, directly or indirectly, at any meeting and shall
not be counted in determining the total number of outstanding shares at any
given time, but such shares held by the corporation in a fiduciary capacity

                                      -4-
<PAGE>   5
may be voted and shall be counted in determining the total number of outstanding
shares at any given time.

                                  VOTING LISTS

         Section 9. The officer or agent having charge of the stock ledger for
the shares of the corporation shall prepare and make, at least ten (10) days
before each meeting of the stockholders at which directors are to be elected, a
complete list of the stockholders entitled to vote at such meeting, arranged in
alphabetical order with the address of and the number of shares registered in
the name of each stockholder. Such list shall be open to the examination of any
stockholder during ordinary business hours for a period of at least ten (10)
days prior to such meeting at the place where the meeting is to be held or at
the office of the corporation in Chicago, Illinois. Such list shall be produced
and kept at the time and place of the meeting during the whole time thereof and
shall be subject to the inspection of any stockholder who may be present. The
original stock ledger shall be prima facie evidence as to who are the
stockholders entitled to examine such stock ledger and to vote at any meeting of
the stockholders.

                            CLOSING OF TRANSFER BOOKS

         Section 10. The board of directors may close the stock transfer books
of the corporation for a period not exceeding sixty (60) days preceding the date
of any meeting of stockholders or the date of payment of any dividend, or the
date for the allotment of rights or the date when any change or conversion or
exchange of capital stock shall go into effect, or for a period not exceeding
sixty (60) days in connection with obtaining the consent of stockholders for any
purpose. In lieu of closing the stock transfer books as aforesaid, the board of
directors may fix in advance a date, not exceeding sixty (60) days preceding the
date of any meeting of stockholders, or the date of the payment of any dividend,
or the date for the allotment of rights, or the date when any change or
conversion or exchange of capital stock shall go into effect, or a date in
connection with obtaining such consent, as a record date for the determination
of the stockholders entitled to notice of, and to vote at, any such meeting, and
any adjournment thereof, or entitled to receive payment of any such dividend, or
to any such allotment of rights, or to exercise the rights in respect of any
such change, conversion or exchange of capital stock, or to give such consent,
and in such case such stockholders and only such stockholders as shall be
stockholders of record on the date so fixed shall be entitled to such notice of,
and to vote at, such meeting and any adjournment thereof, or to receive payment
of such dividend, or to receive such allotment of rights, or to exercise such
rights, or to give such consent, as the case may be, notwithstanding any
transfer of any stock on the books of the corporation after any such record date
fixed as aforesaid.

                          ADVANCE NOTICE OF NOMINATIONS

         Section 11. Subject to such rights of the holders of any class or
series of preferred stock as shall be prescribed in the Restated Certificate of
Incorporation or in the resolutions of the Board of Directors providing for the
issuance of any such class or series, only persons who are nominated in
accordance with the procedures set forth in this Section 11 shall be eligible
for

                                      -5-
<PAGE>   6
election as, and to serve as, directors. Nominations of persons for election to
the Board of Directors may be made at a meeting of the stockholders at which
directors are to be elected (a) by or at the direction of the Board of Directors
or (b) by any stockholder of the Corporation entitled to vote at such meeting in
the election of directors who complies with the requirements of this Section 11.
Such nominations, other than those made by or at the direction of the Board of
Directors, shall be preceded by timely advance notice in writing to the
Secretary of the Corporation. To be timely, a stockholder's notice shall be
delivered to the Secretary at the principal executive offices of the Corporation
not later than the close of business on the 60th day nor earlier than the close
of business on the 90th day prior to the first anniversary of the preceding
year's annual meeting; provided, however, that in the event that the date of the
annual meeting is more than 30 days before or more than 60 days after such
anniversary date, notice by the stockholder to be timely must be so delivered
not earlier than the close of business on the 90th day prior to such annual
meeting and not later than the close of business on the later of the 60th day
prior to such annual meeting or the 10th day following the day on which public
announcement of the date of such meeting is first made by the Corporation. In no
event shall the public announcement of an adjournment of an annual meeting
commence a new time period for the giving of a stockholder's notice as described
above. A stockholder's notice to the Secretary shall set forth (x) as to each
person whom the stockholder proposes to nominate for election or re-election as
a director, (i) the name, age, business address and residence address of such
person, (ii) the principal occupation or employment of such person, (iii) the
number of shares of each class of capital stock of the Corporation beneficially
owned by such person, and (iv) the written consent of such person to having such
person's name placed in nomination at the meeting and to serve as a director if
elected, and (y) as to the stockholder giving the notice, (i) the name and
address, as they appear on the Corporation's books, of such stockholder, and
(ii) the number of shares of each class of voting stock of the Corporation which
are then beneficially owned by the stockholder. The presiding officer of the
meeting of stockholders shall determine whether the requirements of this Section
11 have been met with respect to any nomination or intended nomination. If the
presiding officer determines that any nomination was not made in accordance with
the requirements of this Section 11, he or she shall so declare at the meeting
and the defective nomination shall be disregarded.

                     ADVANCE NOTICE OF STOCKHOLDER PROPOSALS

         Section 12. At an annual meeting of stockholders, only such business
shall be conducted, and only such proposals shall be acted upon, as shall have
been brought before the annual meeting (a) by or at the direction of the Board
of Directors or (b) by any stockholder of the Corporation who complies with the
requirements of this Section 12 and as shall otherwise be proper subjects for
stockholder action and shall be properly introduced at the meeting. For a
proposal to be properly brought before an annual meeting by a stockholder, the
stockholder must have given timely advance notice thereof in writing to the
Secretary of the Corporation. To be timely, a stockholder's notice shall be
delivered to the Secretary at the principal executive offices of the Corporation
not later than the close of business on the 60th day nor earlier than the close
of business on the 90th day prior to the first anniversary of the preceding
year's annual meeting; provided, however, that in the event that the date of the
annual meeting is more than 30 days

                                      -6-
<PAGE>   7
before or more than 60 days after such anniversary date, notice by the
stockholder to be timely must be so delivered not earlier than the close of
business on the 90th day prior to such annual meeting and not later than the
close of business on the later of the 60th day prior to such annual meeting or
the 10th day following the day on which public announcement of the date of such
meeting is first made by the Corporation. In no event shall the public
announcement of an adjournment of an annual meeting commence a new time period
for the giving of a stockholder's notice as described above. A stockholder's
notice to the Secretary shall set forth as to each matter the stockholder
proposes to bring before the annual meeting (w) a description of the proposal
desired to be brought before the annual meeting and the reasons for conducting
such business at the annual meeting, (x) the name and address, as they appear on
the Corporation's books, of the stockholder proposing such business and any
other stockholders known by such stockholder to be supporting such proposal, (y)
the class and number of shares of the Corporation's stock which are beneficially
owned by the stockholder on the date of such notice and (z) any financial
interest of the stockholder in such proposal. The presiding officer of the
annual meeting shall determine whether the requirements of this Section 12 have
been met with respect to any stockholder proposal. If the presiding officer
determines that a stockholder proposal was not made in accordance with the terms
of this Section 12, he or she shall so declare at the meeting and any such
proposal shall not be acted upon at the meeting.

         At a special meeting of stockholders, only such business shall be acted
upon as shall have been set forth in the notice relating to the meeting or as
shall constitute matters incident to the conduct of the meeting as the presiding
officer of the meeting shall determine to be appropriate.

                                   ARTICLE III

                                    DIRECTORS

                                 GENERAL POWERS

         Section 1. The business and affairs of the corporation shall be managed
by a board of directors which may exercise all the powers of the corporation and
do all such lawful acts and things as are not by statute or by the certificate
of incorporation or by these by-laws directed and required to be exercised or
done by the stockholders.

                       NUMBER, CLASSES, AND QUALIFICATIONS

         Section 2. The number of directors which shall constitute the whole
board shall be not less than three (3) nor more than seventeen (17) and shall be
divided into three classes, as nearly equal in number as may be. Subject to the
above limits, the number and classes of directors shall be determined from time
to time by resolution of the board of directors. At each annual meeting after
the initial classification and election of directors, directors shall be elected
to fill all seats in the class whose term expires at such annual meeting and
each director so elected shall hold office for a term expiring at the third
annual meeting of stockholders after election as director and until a successor

                                      -7-
<PAGE>   8
shall be duly elected and qualified. No non-employee director shall serve as
such beyond the first annual meeting of stockholders following that director's
70th birthday nor while such person is an owner, member, or employee of or
affiliated or associated with a professional firm or enterprise providing legal,
accounting, or auditing services or advice to the corporation or any of its
subsidiaries. A non-employee director shall report to the board or any
appropriate committee thereof any significant change in such director's
principal business, occupation, or position and shall consult with the board or
any such committee concerning the possible effect of such change on continued
service as a director. No officer-director shall serve as a director beyond the
date such person ceases to be an officer. Directors need not be stockholders.

                                    VACANCIES

         Section 3. Newly created directorships resulting from any increase in
the authorized number of directors and vacancies in the board of directors from
death, resignation, retirement, disqualification, removal from office or other
cause, shall be filled by a majority vote of the directors then in office, and
each director so chosen shall hold office for a term expiring at the annual
meeting of stockholders at which the term of the class to which he or she shall
have been elected expires, and until his or her successor shall be duly elected
and qualified.

                                REGULAR MEETINGS

         Section 4. Regular meetings of the board of directors shall be held
immediately after the annual meeting of stockholders in each year and on the
second Wednesday in each of the months of February, August, and November in each
year and also on the fourth Friday in each of the months of March and September
in each year. If the day fixed for any such regular meeting shall be a legal
holiday, the meeting scheduled for that day shall be held on the next succeeding
business day which is not a legal holiday. The date and time of any such regular
meeting may be changed as the Board of Directors may from time to time determine
by resolution.

                                SPECIAL MEETINGS

         Section 5. Special meetings of the board of directors may be called at
any time by the chief executive officer of the corporation, or by the corporate
secretary upon the request of not less than one-third (1/3rd) of the directors
then in office.

                                PLACE OF MEETINGS

         Section 6. All meetings of the board of directors, whether regular or
special, shall be held at the office of the corporation in Chicago, Illinois;
provided, however, that any meeting, whether regular or special, may be held at
such other place as the board of directors may from time to time determine by
resolution or as may be fixed in a notice of the meeting or as may be fixed in
any waiver of notice signed by all of the directors.

                               NOTICE OF MEETINGS

                                      -8-
<PAGE>   9
         Section 7. No notice of the holding of any regular meeting of the board
of directors is required. Written notice of any special meeting shall be given
by mail to each director not less than five (5) days before the date of the
meeting, or by telegram, cable, telephone facsimile or electronic mail not less
than two (2) days before the date of the meeting, or by telephone not less than
twenty-four (24) hours before the time of the meeting, with confirmation of
notice by telegram, cable, telephone facsimile or electronic mail, to be sent
promptly. If mailed, such notice shall be deemed to be delivered when deposited
in the United States mail, in a sealed envelope addressed to the director at his
address as it appears on the records of the corporation, with postage prepaid.
If such notice is given by telegram, cable, telephone facsimile, or electronic
mail, the same shall be deemed to be delivered when delivered to any telegraph
company with charges prepaid and addressed to the director at his address as it
appears on the records of the corporation or when placed on telephone lines for
facsimile transmittal or electronic mail to the director. Attendance of any
director at any special meeting shall constitute a waiver of notice of such
meeting except where a director attends a meeting for the express purpose of
objecting to the transaction of any business on the ground that the meeting is
not lawfully called or convened. Neither the business to be transacted at, nor
the purpose of any special meeting of the board of directors need be stated in
the notice or waiver of notice of such meeting.

                                     QUORUM

         Section 8. A majority of the board of directors shall constitute a
quorum for the transaction of business, but if at any meeting of the board there
shall be less than a quorum present, a majority of those present may adjourn the
meeting from time to time. The affirmative vote of a majority of all directors
shall be necessary for the passage of any resolution unless a greater vote is
required in these by-laws or the certificate of incorporation.

                             ORGANIZATION OF MEETING

         Section 9. At meetings of the board of directors, the chairman of the
board, or in his absence the president, or in his absence the vice chairmen of
the corporation in the chronological order of their election to that office,
shall preside as chairman of the meeting. In the absence of all of them, the
meeting shall elect a director, present at the meeting, to act as chairman. The
corporate secretary of the corporation, or in his absence an assistant
secretary, shall act as secretary of all meetings of the board of directors and,
in the absence of all such persons, the chairman of the meeting shall appoint
some other person to act as secretary of the meeting.

                            COMPENSATION OF DIRECTORS

         Section 10. Each director not otherwise employed by the corporation or
an affiliated corporation shall be entitled to be paid expenses, if any, of
attendance at such meetings and such remuneration as the board of directors may
from time to time determine.

                                      -9-
<PAGE>   10
                                   ARTICLE IV

                             COMMITTEES OF DIRECTORS

                       DESIGNATION OF STANDING COMMITTEES

         Section 1. The corporation shall have the following standing
committees:

                    (a) An Executive Committee which shall have and may exercise
all the authority of the board of directors during the intervals between
meetings of the board of directors in the management of the business and affairs
of the corporation and may authorize the seal of the corporation to be affixed
to all papers which may require it. The committee shall consist of not less than
four members of the board of directors and shall include the chairman of the
board of directors and the president and/or a vice chairman as members.

                    (b) A Compensation and Organization Committee which shall
have the duty to review and to make recommendations to the board of directors
with respect to management organization, succession and development programs,
the election of corporate officers and their salaries and incentive compensation
or bonus awards; to make the decisions required by a committee of the board of
directors under all stock option and restricted stock and deferred stock plans;
and to approve and report to the board of directors changes in salary ranges for
all other major position categories and changes in retirement plans, group
insurance plans, investment plans or other benefit plans and management
incentive compensation or bonus plans. The committee shall consist of not less
than four members of the board of directors who are not officers or employees of
the corporation.

                    (c) An Audit Committee which shall have ongoing
responsibilities to assist the Board of Directors in monitoring the integrity of
the financial statements of the Corporation, the Corporation's compliance with
financial reporting, legal and statutory requirements, and the independence and
performance of the Corporation's internal and external auditors. The Audit
Committee additionally shall select and employ on behalf of the Corporation,
subject to ratification by the stockholders, and approve the fees of, a firm of
certified public accountants whose duty shall be to audit the books and accounts
of the Corporation and its subsidiaries and affiliates for the fiscal year for
which it is appointed, and which firm shall ultimately be accountable to the
Committee and the Board of Directors. Such Committee shall also retain special
legal, accounting or other consultants to advise it as it shall determine, and
may request any officer or employee of the Corporation or its outside counsel or
independent auditor to meet with it, individually or jointly, or any of its
consultants. The Committee periodically shall report and make appropriate
recommendations to the Board of Directors. It shall consist of not less than
three members of the Board of Directors who are not officers or employees of the
Corporation and who meet the independence, financial literacy and experience
requirements of the New York Stock Exchange and Securities and Exchange
Commission. Such members shall be appointed by the Board of Directors on the
recommendation of the Committee on Directors."

                                      -10-
<PAGE>   11

                     (d) A Committee on Directors which shall study and make
recommendations to the board of directors concerning the size and composition of
the board and committees of the board, recommend nominees for election or
reelection as directors, and consider other matters pertaining to board
membership such as retirement policy and compensation of non-employee directors.
The Committee shall be responsible for evaluating board performance and
reporting its findings to the board of directors and for reviewing and
recommending changes to the corporation's corporate governance guidelines.
Directors who are not officers or employees of the corporation and whose terms
continue after the next annual meeting will be designated to serve on this
committee.

                     (e) A Finance Committee which shall provide review and
oversight of and make recommendations to the board of directors on the
corporation's financing requirements and programs to obtain funds; relations
with banks, bondholders and other creditors, and equity holders; operating and
capital expenditure budgets; dividend policy; and acquisitions, divestitures and
significant transactions affecting the corporation's capital structure or
ownership. The Committee shall confer with the Pension and Investment Committee
established under the corporation's retirement plan and report periodically to
the board of directors on the funding of qualified pension plans of the
corporation and its subsidiaries and the investment performance of plan funds
and, on behalf of the board of directors, authorize necessary or desirable
changes in actuarial assumptions for funding the plans. The Committee shall
consider such other matters as may be referred to it from time to time by the
board of directors.

                     (f) A Corporate Affairs Committee which shall review and
recommend policies and programs which are important in maintaining a sound
position with those various publics whose understanding and goodwill are
necessary to the corporation's success. The committee shall report periodically
to the board of directors on the corporation's activities in fulfilling its
social responsibilities and complying with public policy, including
environmental compliance, employee safety and occupational health, equal
employment opportunity, product safety, corporate contributions, and the
relationship of the corporation to the communities in which it operates. The
committee shall consist of not fewer than three members of the board of
directors who are not officers or employees of the corporation.

                          OTHER COMMITTEES OF DIRECTORS

         Section 2. The board of directors may, by resolution passed by a
majority of the whole board, designate from time to time other committees of the
board of directors of such number of directors and with such powers as the board
of directors may by resolution determine.

                        APPOINTMENT OF COMMITTEE MEMBERS

         Section 3. The board of directors at its meeting following the annual
meeting of stockholders shall designate the directors to constitute the
membership of each standing committee and the chairman thereof, and such
directors shall serve until the directors' meeting following the next annual
meeting of stockholders; provided, however, that vacancies during the year on
any standing committee shall be filled by the board of directors so that the
membership of each committee shall be

                                      -11-
<PAGE>   12
filled at all times; and provided further that in the absence or
disqualification of any member of a committee, the members of that committee
present at any meeting and not disqualified from voting, whether or not
constituting a quorum, may unanimously appoint another member of the board of
directors to act at the meeting in the place of the absent or disqualified
member.

                                MEETINGS--QUORUM

         Section 4. Meetings of each committee may be called by its chairman or
by any two members of the committee or by the chief executive officer of the
corporation or by resolution of the board of directors. Each such committee
shall fix its own rules of procedure. The presence of a majority of the members
of a committee shall be necessary to constitute a quorum for the transaction of
business, and the affirmative vote of a majority of all the members of the
committee shall be necessary for the adoption of any resolution or the taking of
any action. Each committee shall report to the board of directors all actions of
the committee at the next directors' meeting following any meeting of any such
committee. Regular minutes of the proceedings of each committee shall be kept in
a book provided for that purpose.

                                      -12-
<PAGE>   13

                        REMUNERATION OF COMMITTEE MEMBERS

         Section 5. Members of each committee not regularly employed by the
corporation or an affiliated corporation shall be entitled to expenses, if any,
of attendance at such meetings and such remuneration as may be determined by
resolution of the board of directors.

                                    ARTICLE V

                                    OFFICERS

                               GENERAL PROVISIONS

         Section 1. The officers of the corporation shall be a chairman of the
board of directors, a president, a treasurer, and a corporate secretary, and
such vice chairmen, executive vice presidents, senior vice presidents, vice
presidents, assistant treasurers, assistant secretaries or other officers as may
be elected or appointed by the board of directors. Either the chairman of the
board of directors or the president shall be the chief executive officer. Either
the president or an executive vice president shall be the chief operating
officer. The chairman of the board of directors, the president, and the vice
chairmen all shall be members of the board of directors. The officers shall have
authority and perform duties as set forth in these by-laws or as prescribed by
resolution adopted by the board of directors. The salaries and other
compensation of officers shall be fixed by the board of directors.

                                    ELECTION

         Section 2. The officers of the corporation shall be elected annually by
the board of directors at the first meeting of the board of directors held after
each annual meeting of the stockholders. If the election of officers shall not
be held at such meeting, such election shall be held as soon thereafter as
conveniently may be. Vacancies may be filled or new officers created and filled
at any meeting of the board of directors. Each officer shall hold office until
his successor shall have been elected and shall have qualified or until his
death, resignation or removal in the manner hereinafter provided, or until the
board of directors shall by resolution determine that the office shall be left
unfilled. The chairman of the board and the president shall be chosen from the
members of the board of directors.

                                     REMOVAL

         Section 3. Any officer elected by the board of directors may be removed
by the board of directors whenever in its judgment the best interests of the
corporation will be served thereby, but such removal shall be without prejudice
to the contract rights, if any, of the person so removed.

                                      -13-
<PAGE>   14

                     THE CHAIRMAN OF THE BOARD OF DIRECTORS

         Section 4. The chairman of the board of directors shall have general
responsibility for the business and affairs of the corporation, subject to the
control of the board of directors. Such officer shall preside at all meetings of
the stockholders and of the board of directors of the corporation, shall have
all other responsibilities incident to the office of chairman of the board of
directors, and shall, by virtue of the office, be a member of the Executive
Committee of the board of directors. Such officer additionally may, with the
corporate secretary or an assistant secretary, sign certificates of capital
stock and other securities of the corporation.

                                  THE PRESIDENT

         Section 5. The president shall have direct and active charge of the
business and affairs of the corporation under the direction of the chairman of
the board of directors and subject to the control of the board of directors.
Such officer shall perform such other duties as may be delegated from time to
time by the board of directors or the chairman thereof and shall have all other
responsibilities incident to the office of president. Such officer additionally
may, with the corporate secretary or an assistant secretary, sign certificates
of capital stock and other securities of the corporation. In the event of the
death or disability of the chairman of the board of directors, the president
shall assume the responsibilities of chairman of the board of directors.

                                THE VICE CHAIRMEN

         Section 6. If elected, the vice chairmen shall have the respective
responsibilities incident to any other office or title conferred on them by the
board of directors and such other responsibilities as may be assigned from time
to time by the chairman of the board of directors. In the event of the death or
disability of the chairman of the board of directors and the president, the vice
chairmen in the chronological order of their election to that office shall
assume the responsibilities of chairman of the board of directors.

           THE CHIEF EXECUTIVE OFFICER AND THE CHIEF OPERATING OFFICER

         Section 7. The chief executive officer shall have authority to approve
basic policies, operating plans, and annual performance goals, subject to
approval of the board of directors as required. Such officer shall assure
uniform interpretation and administration of basic policies by all members of
management and shall have responsibility for such financial, legal, and other
administrative functions directly bearing on general corporate governance as are
determined from time to time by the chairman of the board of directors, subject
to approval of the board of directors as required. The chief operating officer
shall assist the chief executive officer in formulating and implementing overall
plans. Such officer shall have such responsibilities for management of general
manufacturing, sales, product distribution, and directly related staff functions
as are determined from time to time by the chairman of the board of directors.

                                      -14-
<PAGE>   15
THE EXECUTIVE VICE PRESIDENTS, THE SENIOR VICE PRESIDENTS, AND THE VICE
PRESIDENTS

         Section 8. If an executive vice president is elected and designated
chief operating officer, such executive vice president shall, in the event of
the death or disability of the president, assume the responsibilities of
president. If no executive vice president is designated chief operating officer,
then in the event of the death or disability of the president, first the
executive vice presidents, then the senior vice presidents, then the vice
presidents, each in chronological order of election, shall assume the
responsibilities of president. The executive vice presidents, the senior vice
presidents, and the vice presidents shall have such responsibilities and such
other powers as the board of directors, the chairman of the board of directors,
or the president from time to time shall prescribe.

                     THE TREASURER AND ASSISTANT TREASURERS

         Section 9. The treasurer shall have charge and custody of all funds and
securities of the corporation, shall keep full and accurate accounts of the
receipts and disbursements in books belonging to the corporation, and shall
deposit all moneys and other valuable effects in the name and to the credit of
the corporation in such depositories as may be authorized from time to time by
the board of directors. Such officer shall disburse the funds of the corporation
as may be required in the conduct of the business and shall render to the chief
executive officer and the board of directors, at the regular meetings of said
board or whenever said board may require it, an account of all transactions as
treasurer and of the financial condition of the corporation. If required by the
board of directors, such officer shall give the corporation a bond in such form
and with such surety or sureties as shall be satisfactory to the board of
directors for the faithful performance of the duties of the office. In general,
such officer shall have the authority to perform all acts incident to the office
of treasurer, subject to the control of the board of directors. The assistant
treasurers, in the order of their election, shall, in the event of death or
disability of the treasurer, assume the responsibilities of the treasurer and
shall perform such other duties as the board of directors or the treasurer may
from time to time prescribe or delegate.

                THE CORPORATE SECRETARY AND ASSISTANT SECRETARIES

         Section 10. The corporate secretary shall attend all meetings of the
board of directors and all meetings of the stockholders, record all proceedings
of the meetings of the board of directors and the stockholders in books to be
kept for those purposes and shall perform like duties for any committee of the
board of directors when requested. Such officer shall give, or cause to be
given, notice of all meetings of the stockholders and special meetings of the
board of directors and shall be the custodian of corporate records and the seal
of the corporation. Such officer additionally shall have authority to affix the
seal to any instrument requiring it and when so affixed, it may be attested by
signature. The assistant secretaries, in the order of their election, shall, in
the event of death or disability of the corporate secretary, assume the
responsibilities of the corporate secretary and shall perform such other duties
as the corporate secretary or the board of directors may from time to time
prescribe.

                                      -15-
<PAGE>   16

                       VOTING SHARES OF OTHER CORPORATIONS

         Section 11. Unless otherwise ordered by the board of directors, the
chairman of the board of directors or such person as he may appoint shall have
full power and authority, on behalf of the corporation, to attend any meetings
of stockholders of any corporation in which this corporation may hold stock and
to vote the shares held by this corporation at any such meeting, and at any such
meeting to possess and exercise any and all rights and powers incident to the
ownership of such shares.

                                   ARTICLE VI

                        CERTIFICATES OF STOCK - DIVIDENDS

         Section 1. (a) Every holder of stock in the corporation shall be
entitled to have a certificate signed in the name of the corporation by the
chairman of the board of directors or the president and the corporate secretary
or an assistant secretary, certifying the number of shares owned by him in the
corporation. If such certificate is countersigned (1) by a transfer agent other
than the corporation or its employee, or (2) by a registrar other than the
corporation or its employee, any other signature on the certificate may be a
facsimile. In case any officer, transfer agent, or registrar who has signed or
whose facsimile signature has been placed upon a certificate shall have ceased
to be such officer, transfer agent or registrar before such certificate is
issued, the certificate may be issued by the corporation with the same effect as
if he were such officer, transfer agent or registrar at the date of issue.

                    (b) All certificates surrendered to the corporation for
transfer shall be canceled and no new certificate shall be issued until the
former certificate for a like number of shares of the same class has been
surrendered and canceled or properly accounted for in the case of a lost
certificate.

                               TRANSFER OF SHARES

         Section 2. Upon surrender to the corporation or transfer agent of the
corporation of a certificate of shares duly endorsed and accompanied by proper
evidence of succession, assignment or authority to transfer, it shall be the
duty of the corporation to issue a new certificate to the person entitled
thereto, cancel the old certificate and record the transaction upon its books.
The board of directors may appoint one or more transfer agents and registrars of
transfer, and may require all stock certificates to bear the signature of a
transfer agent and of a registrar of transfers.

                             REGISTERED STOCKHOLDERS

         Section 3. The corporation shall be entitled to recognize the exclusive
right of a person registered on its books as the owner of shares to receive
dividends and to vote as such owner, and to hold liable for calls and
assessments a person registered on its books as the owner of shares, and shall
not be bound to recognize any equitable or other claim to or interest in such
share or shares on

                                      -16-
<PAGE>   17
the part of any other person, whether or not it shall have express or other
notice thereof, except as otherwise provided by the laws of Delaware or
elsewhere in these by-laws.

                                    DIVIDENDS

         Section 4. Dividends upon the capital stock of the corporation, subject
to the provisions, if any, of the certificate of incorporation, may be declared
by the board of directors at any regular or special meeting pursuant to law.
Dividends may be paid in cash, in property, or in shares of capital stock,
subject to the provisions of the certificate of incorporation.

                                   ARTICLE VII

                    INDEMNIFICATION OF DIRECTORS AND OFFICERS

         The corporation (i) shall indemnify every person who is or was a
director or officer of the corporation or is or was serving at the corporation's
request as a director or officer of another corporation, partnership, joint
venture, trust or other enterprise; and (ii) shall, if the board of directors so
directs, indemnify any person who is or was an employee or agent of the
corporation or is or was serving at the corporation's request as an employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise to the extent, in the manner, and subject to compliance with the
applicable standards of conduct, provided by Section 145 of the General
Corporation Law of the State of Delaware as the same (or any substitute
provision therefor) may be in effect from time to time. Without limiting the
foregoing, the corporation shall indemnify, and (subject to the receipt of any
required undertaking to repay expenses) advance expenses to, every person who is
a director of the corporation to the fullest extent permitted by law.

         Such indemnification (i) shall not be deemed exclusive of any other
rights to which any person seeking indemnification under or apart from this
Article VII may be entitled under any by-law, agreement, vote of stockholders or
disinterested directors or otherwise, both as to action in his official capacity
and as to action in another capacity while holding such office, and (ii) shall
continue as to a person who has ceased to be a director, officer, employee or
agent and shall inure to the benefit of the heirs, executors and administrators
of such a person.

                                  ARTICLE VIII

                               GENERAL PROVISIONS

                                     CHECKS

         Section 1. All checks or demands for money and notes of the corporation
shall be signed by such officer or officers, or such other person or persons, as
the board of directors may from time to time designate.

                                      -17-
<PAGE>   18
                                   FISCAL YEAR

         Section 2. The fiscal year of the corporation shall begin on the first
day of January of each year and end at the close of the last day of December in
the same year.

                                      SEAL

         Section 3. The corporate seal shall have inscribed thereon the name of
the corporation, the year of its organization and the words "Corporate Seal,
Delaware". The seal may be used by causing it or a facsimile thereof to be
impressed or affixed or reproduced or otherwise.

                                WAIVER OF NOTICE

         Section 4. Whenever any notice whatever is required to be given under
the provisions of the statutes or of the certificate of incorporation or of
these by-laws, a waiver thereof in writing, signed by the person or persons
entitled to said notice, whether before or after the time stated therein, shall
be deemed equivalent thereto.

                                   ARTICLE IX

                                   AMENDMENTS

         These by-laws may be amended or repealed (i) subject to Article TWELFTH
of the corporation's Restated Certificate of Incorporation, by the affirmative
vote of a majority of the total number of directors or (ii) by the affirmative
vote of the holders of 80% of the voting power of the corporation's stock
outstanding and entitled to vote thereon.

                                      -18-

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