Document:

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                                                                     EXHIBIT 4.2

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                          THE WILLIAMS COMPANIES, INC.

                                       AND

                          BANK ONE TRUST COMPANY, N.A.,

                                   as Trustee

                          Eighth Supplemental Indenture

                          Dated as of [________], 2002

                                       To

                                    Indenture

                          Dated as of November 10, 1997

                         9.25% Notes due March 15, 2004

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                  EIGHTH SUPPLEMENTAL INDENTURE, dated as of [______], 2002
(this "Eighth Supplemental Indenture"), between THE WILLIAMS COMPANIES, INC., a
corporation duly organized and existing under the laws of the State of Delaware
(the "Issuer"), having its principal office at One Williams Center, Tulsa,
Oklahoma 74172, and BANK ONE TRUST COMPANY, N.A. (successor in interest to THE
FIRST NATIONAL BANK OF CHICAGO), as Trustee (the "Trustee") under the Indenture,
dated as of November 10, 1997, between the Issuer and the Trustee (the "Original
Indenture").

                  WHEREAS, the Issuer has executed and delivered the Original
Indenture to the Trustee to provide for the issuance from time to time of its
senior, unsecured notes, debentures or other evidences of indebtedness (the
"Securities"), to be issued in one or more series as in the Original Indenture
provided;

                  WHEREAS, pursuant to the terms of the Original Indenture, the
Issuer desires to make, execute and deliver to the Trustee this Eighth
Supplemental Indenture to the Original Indenture in order to establish the form
and terms of, and to provide for the creation and issue of, a new series of its
Securities designated as the 9.25% Notes due March 15, 2004 (herein called the
"Notes"), under the Original Indenture in the aggregate principal amount of
$1,400,000,000;

                  WHEREAS, all things necessary to make the Notes, when executed
by the Issuer and authenticated and delivered by the Trustee and issued upon the
terms and subject to the conditions hereinafter and in the Indenture set forth,
against payment therefor, the valid, binding and legal obligations of the Issuer
and to make this Eighth Supplemental Indenture a valid, binding and legal
agreement of the Issuer, have been done;

                  NOW THEREFORE, for, and in consideration of, the premises and
covenants contained in the Original Indenture and this Eighth Supplemental
Indenture and the purchase of the Notes by the Holders thereof, it is mutually
agreed and covenanted, for the equal and proportionate benefit of all Holders of
the Notes, as follows:

                                   ARTICLE I

                                  DEFINED TERMS

                  Section 1.1 Defined Terms. Except as otherwise expressly
provided in this Eighth Supplemental Indenture or in the form of Note set forth
in Exhibit A hereto or otherwise clearly required by the context hereof or
thereof, all capitalized terms used and not defined herein or in said form of
Note that are defined in the Original Indenture shall have the meanings assigned
to them in the Original Indenture. The Original Indenture, as supplemented from
time to time, including by this Eighth Supplemental Indenture, is hereafter
referred to as the "Indenture."

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                                   ARTICLE II

                               TERMS OF THE NOTES

                  Section 2.1 Establishment of the Notes. There is hereby
authorized a series of Securities designated the 9.25% Notes due March 15, 2004,
limited in aggregate principal amount to $1,400,000,000 (except as provided in
Section 2.3(2) of the Original Indenture). The Issuer may, without the consent
of the Holders of the Notes, provided that no Event of Default shall have
occurred and be continuing, issue additional Notes in such principal amount as
shall be determined by or pursuant to a Board Resolution and having the same
ranking and the same interest rate, maturity or other terms as the Notes
originally issued hereunder, which together with said additional Notes shall
constitute a single series of Securities under the Indenture. The Notes shall be
substantially in the form set forth in Exhibit A hereto and shall include
substantially the legends set forth on the face thereof.

                  Section 2.2 Terms of the Notes. The terms and provisions of
the Notes as set forth in Exhibit A are hereby incorporated in and expressly
made part of this Eighth Supplemental Indenture.

                  The Notes will mature and the principal thereof will be due
and payable, together with all accrued and unpaid interest thereon, on March 15,
2004.

                  The Notes shall bear interest at the rate of 9.25% per annum.

                  The amount of interest payable on the Notes will be computed
on the basis of a 360-day year consisting of twelve 30-day months.

                  Payment of the principal of (and premium, if any) and interest
on the Notes will be made at the office or agency of the Issuer maintained for
that purpose in the Borough of Manhattan, the City and State of New York, in
such coin or currency of the United States of America as at the time of payment
is legal tender for the payment of public and private debts and in immediately
available funds; provided, however, that at the option of the Issuer payment of
interest may be made by wire transfer of immediately available funds to an
account of the Person entitled thereto as such account shall be provided to the
Trustee at least 15 days prior to the relevant payment date or by check in New
York Clearinghouse Funds mailed to the address of the person entitled thereto as
such address shall appear in the registry books of the Issuer.

                  Initially the Notes will be issued in global form registered
in the name of Cede & Co. (as nominee for The Depository Trust Company (the
"Depositary"), the initial securities depositary for the Notes), and may bear
such legends as the Depositary may reasonably request. So long as the Notes are
outstanding in global form registered in the name of the Depositary or its
nominee, all payments of principal, premium, if any, and interest will be made
by the Issuer in immediately available funds.

                  No service charge shall be made for the registration of
transfer or exchange of the Notes; provided, however, that the Issuer may
require payment of a sum sufficient to cover any

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tax or other governmental charge that may be imposed in connection with the
exchange or transfer.

                  The Notes shall not be superior in right of payment to, and
shall rank pari passu with, all other unsecured and unsubordinated Indebtedness
of the Issuer.

                  The Notes shall be issued in minimum denominations of $1,000
or any integral multiple of $1,000 over such denomination.

                  Section 2.3 Global Notes. Unless and until it is exchanged for
the Notes in registered form, one or more global Notes in principal amount equal
to the aggregate principal amount of all outstanding Notes ("Global Notes") may
be transferred, in whole but not in part, only to the Depositary or a nominee of
the Depositary, or to a successor Depositary selected or approved by the Issuer
or to a nominee of such successor Depositary.

                  If at any time (i) the Depositary notifies the Issuer that it
is unwilling or unable to continue as a Depositary for the Global Notes and no
successor Depositary shall have been appointed within 90 days after such
notification, (ii) the Depositary ceases to be a clearing agency registered
under the Securities Exchange Act of 1934 at any time the Depositary is required
to be so registered to act as such Depositary and no successor Depositary shall
have been appointed within 90 days after the Issuer's becoming aware of the
Depositary's ceasing to be so registered, (iii) the Issuer, in its sole
discretion, determines that the Global Notes shall be exchangeable for Notes in
definitive registered form or (iv) there shall have occurred and be continuing
an Event of Default, the Issuer will execute, and subject to Article Five of the
Original Indenture, the Trustee, upon written notice from the Issuer, will
authenticate and deliver the Notes in definitive registered form without
coupons, in authorized denominations, and in an aggregate principal amount equal
to the principal amount of the Global Note in exchange for such Global Note.

                  Upon exchange of the Global Note for such Notes in definitive
registered form without coupons, in authorized denominations, the Global Note
shall be cancelled by the Trustee. Such Notes in definitive registered form
issued in exchange for the Global Note shall be registered in such names and in
such authorized denominations as the Depositary, pursuant to instructions from
its direct or indirect participants or otherwise, shall instruct the Trustee.
The Trustee shall deliver such Securities to the Depositary for delivery to the
Persons in whose names such Securities are so registered.

                                  ARTICLE III

                  Section 3.1 Execution Of Notes. The Notes shall be executed as
follows:

         The Notes shall be signed on behalf of the Issuer by its Chairman of
the Board, its President, one of its Vice Presidents or its Treasurer, under its
corporate seal which may, but need not, be attested. Such signatures may be the
manual or facsimile signatures of the present or any future such officers. The
seal of the Issuer may be in the form of a facsimile thereof and may be
impressed, affixed, imprinted or otherwise reproduced on the Notes.
Typographical and other minor errors or defects in any such reproduction of the
seal or any such signature shall not affect

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the validity or enforceability of any Note that has been duly authenticated and
delivered by the Trustee.

         In case any officer of the Issuer who shall have signed any of the
Notes shall cease to be such officer before the Note so signed shall be
authenticated and delivered by the Trustee or disposed of by the Issuer, such
Note nevertheless may be authenticated and delivered or disposed of as though
the person who signed such Note had not ceased to be such officer of the Issuer;
and any Note may be signed on behalf of the Issuer by such persons as, at the
actual date of the execution of such Note, shall be the proper officers of the
Issuer, although at the date of the execution and delivery of this Eighth
Supplemental Indenture any such person was not such an officer.

                                   ARTICLE IV

                                SUNDRY PROVISIONS

                  Section 4.1 Execution, Authentication and Delivery of the
Notes. Notes in the aggregate principal amount of $1,400,000,000, or in such
greater principal amount as shall be permitted by Section 2.1, may, upon
execution of this Eighth Supplemental Indenture, or from time to time
thereafter, be executed by the Issuer and delivered to the Trustee for
authentication, and the Trustee shall thereupon authenticate and deliver said
Notes upon an Issuer Order without any further action by the Issuer.

                  Section 4.2 Paying Agent and Security Registrar. Bank One
Trust Company, N.A. will be the paying agent and registrar for the Notes.

                  Section 4.3 Trustee Not Responsible for Recitals. The recitals
contained in this Eighth Supplemental Indenture shall be taken as the statements
of the Issuer, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of this
Eighth Supplemental Indenture.

                  Section 4.4 Incorporation of Indenture. The Original
Indenture, as supplemented by this Eighth Supplemental Indenture, is in all
respects ratified and confirmed, and this Eighth Supplemental Indenture shall be
deemed part of the Indenture in the manner and to the extent herein and therein
provided.

                  Section 4.5 Governing Law. This Eighth Supplemental Indenture
shall be deemed to be a contract under the laws of the State of New York and for
all purposes shall be construed in accordance with the laws of such State,
except as may otherwise be required by mandatory provisions of law.

                  Section 4.6 Counterparts. This Eighth Supplemental Indenture
may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute
one and the same instrument.

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

                                              THE WILLIAMS COMPANIES, INC.

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

                                              BANK ONE TRUST COMPANY, N.A.,
                                              as Trustee

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

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                                                                       EXHIBIT A

                             [FORM OF FACE OF NOTE]

[IF THE NOTE IS TO BE A GLOBAL NOTE, INSERT:] THIS NOTE IS A GLOBAL NOTE WITHIN
THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF THE DEPOSITORY TRUST COMPANY OR A NOMINEE OF THE DEPOSITORY TRUST
COMPANY. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITORY TRUST COMPANY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCED DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER
THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY TRUST COMPANY TO A
NOMINEE OF THE DEPOSITORY TRUST COMPANY OR BY A NOMINEE OF THE DEPOSITORY TRUST
COMPANY TO THE DEPOSITORY TRUST COMPANY OR ANOTHER NOMINEE OF THE DEPOSITORY
TRUST COMPANY OR TO A SUCCESSOR DEPOSITARY OR TO A NOMINEE OF SUCH SUCCESSOR)
MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON
IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

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                          THE WILLIAMS COMPANIES, INC.

                          9.25% NOTE DUE MARCH 15, 2004

CUSIP No. [  ]                                                $[            ]
No. [__]

                  THE WILLIAMS COMPANIES, INC., a corporation duly organized and
existing under the laws of the State of Delaware (hereinafter referred to as the
"Issuer," which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
[___________], or registered assigns, the principal sum of [___________] on
March 15, 2004 (the "Maturity Date"), unless earlier redeemed or repurchased,
and to pay interest thereon in the manner and on the Interest Payment Dates set
forth below at the rate of 9.25% per annum, from and including March 16, 2002,
or from the most recent Interest Payment Date (as defined below) to which
interest has been paid or duly provided for, until the principal hereof is paid
or made available for payment. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the Person in whose name this Security (or one or more
predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest. "Regular Record Date" shall mean the March 1 and
September 1 (whether or not a Business Day) next preceding such Interest Payment
Date. "Interest Payment Date" shall mean March 15 and September 15 of each year,
commencing September 15, 2002, to the Maturity Date.

                  Any such interest not so punctually paid or duly provided for
will forthwith cease to be payable to the Holder on such Regular Record Date and
may either be paid to the Person in whose name this Security (or one or more
predecessor Securities) is registered at the close of business on a subsequent
record date (a "Special Record Date") for the payment of such defaulted interest
to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this series not less than 15 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture.

                  Payment of the principal of (and premium, if any) and interest
on this Security will be made at the office or agency of the Issuer maintained
for that purpose in the Borough of Manhattan, the City and State of New York, in
such coin or currency of the United States of America as at the time of payment
is legal tender for the payment of public and private debts and in immediately
available funds; provided, however, that at the option of the Issuer payment of
interest may be made by wire transfer of immediately available funds to an
account of the Person entitled thereto as such account shall be provided to the
Trustee at least 15 days prior to the relevant payment date or by check in New
York Clearinghouse Funds mailed to the address of the Person entitled thereto as
such address shall appear in the registry books of the Issuer.

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

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                  Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Security shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.

                  IN WITNESS WHEREOF, The Williams Companies, Inc. has caused
this instrument to be duly executed under its corporate seal.

Dated: [_________]

                                                THE WILLIAMS COMPANIES, INC.

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

Attest:

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

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the Securities of the series designated herein
referred to in the within-mentioned Indenture.

                                                BANK ONE TRUST COMPANY, N.A.,
                                                 as Trustee

                                                By:
                                                   -----------------------------
                                                         Authorized Officer
Dated: [_________]

                                      A-3

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                            [FORM OF REVERSE OF NOTE]

                          THE WILLIAMS COMPANIES, INC.

                          9.25% NOTE DUE MARCH 15, 2004

                  This Security is one of a duly authorized issue of securities
of the Issuer (the "Securities"), issued and to be issued in one or more series
under an Indenture, dated as of November 10, 1997 (the "Original Indenture"), as
supplemented by a First Supplemental Indenture, dated as of September 8, 2000, a
Second Supplemental Indenture, dated as of December 7, 2000, a Third
Supplemental Indenture, dated as of December 20, 2000, a Fourth Supplemental
Indenture, dated as of January 17, 2001, a Fifth Supplemental Indenture, dated
as of January 17, 2001, a Sixth Supplemental Indenture, dated as of January 14,
2002, a Seventh Supplemental Indenture, dated as of March 19, 2002, and an
Eighth Supplemental Indenture, dated as of [________], 2002 (the "Eighth
Supplemental Indenture" and the Original Indenture, as so supplemented, the
"Indenture"), each between the Issuer and Bank One Trust Company, N.A.
(successor in interest to The First National Bank of Chicago), as Trustee (the
"Trustee", which term includes any successor trustee under the Indenture), and
reference is hereby made to the Eighth Supplemental Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Issuer, the Trustee and the Holders and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is a
Global Security representing $[________] aggregate principal amount of the
Issuer's 9.25% Notes due March 15, 2004. The Securities of this series of which
this Global Security is a part are limited in aggregate principal amount to
$1,400,000,000, except as provided in the Eighth Supplemental Indenture.

         Optional Redemption. The Securities of this series are redeemable, in
whole or in part, at any time, at the option of the Issuer, at a redemption
price equal to the greater of:

                        o     100% of the principal amount of the Securities of
                              this series then outstanding to be redeemed, or

                        o     the sum of the present values of the remaining
                              scheduled payments of principal and interest
                              thereon from the redemption date to the Maturity
                              Date computed by discounting such payments to the
                              redemption date on a semi-annual basis (assuming a
                              360-day year consisting of twelve 30-day months)
                              at a rate equal to the sum of 50 basis points plus
                              the Adjusted Treasury Rate on the third Business
                              Day prior to the redemption date, as calculated by
                              an Independent Investment Banker.

         "Adjusted Treasury Rate" means, with respect to any redemption date:

      o     the yield, under the heading which represents the average for the
            immediately preceding week, appearing in the most recently published
            statistical release designated "H.15(519)" or any successor
            publication which is published weekly by the Board of Governors of
            the Federal Reserve System and which establishes yields on actively
            traded U.S. Treasury securities adjusted to constant maturity under
            the caption "Treasury Constant Maturities," for the maturity
            corresponding to the Optional Redemption Comparable Treasury Issue
            (if no maturity is within three months before or after the remaining
            term of the Securities of this series, yields for the two published
            maturities most closely corresponding to the Optional

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            Redemption Comparable Treasury Issue will be determined and the
            Adjusted Treasury Rate will be interpolated or extrapolated from
            such yields on a straight line basis, rounding to the nearest
            month); or

      o     if such release (or any successor release) is not published during
            the week preceding the calculation date or does not contain such
            yields, the rate per annum equal to the semi-annual equivalent yield
            to maturity of the Optional Redemption Comparable Treasury Issue,
            calculated using a price for the Optional Redemption Comparable
            Treasury Issue (expressed as a percentage of its principal amount)
            equal to the Optional Redemption Comparable Treasury Price for such
            redemption date.

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

         "Optional Redemption Reference Treasury Dealer" means each of up to
five dealers to be selected by the Issuer, and their respective successors;
provided that if any of the foregoing ceases to be, and has no affiliate that
is, a U.S. government securities dealer (a "Primary Treasury Dealer"), the
Issuer will substitute for it another Primary Treasury Dealer.

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

         "Optional Redemption Comparable Treasury Price" means (1) the average
of five Optional Redemption Reference Treasury Dealer Quotations for the
redemption date, after excluding the highest and lowest Optional Redemption
Reference Treasury Dealer Quotations, or (2) if the Independent Investment
Banker obtains fewer than five such Optional Redemption Reference Treasury
Dealer Quotations, the average of all such quotations.

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

         The Issuer will mail notice of redemption at least 30 days but not more
than 60 days before the applicable redemption date to each Holder of the
Securities to be redeemed. If the Issuer elects to partially redeem the
Securities, the Trustee will select in a fair and appropriate manner the
Securities to be redeemed. The Issuer shall give the Trustee notice of the
redemption price shortly after the calculation thereof.

         Upon the payment of the redemption price plus accrued and unpaid
interest, if any, to the date of redemption, interest will cease to accrue on
and after the applicable redemption date on the Securities or portions thereof
called for redemption.

                                      A-5
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                  Usury. The interest rate on the Securities of this series
shall in no event be higher than the maximum rate permitted by New York law as
the same may be modified by United States law of general application.

                  Defeasance. The Indenture contains provisions for defeasance
of (a) the entire Indebtedness evidenced by this Security and (b) certain
restrictive covenants upon compliance by the Issuer with certain conditions set
forth therein.

                  Events of Default. If an Event of Default with respect to
Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture.

                  Amendment to Indenture; Waiver of Defaults. The Indenture
permits the Issuer and the Trustee, with the consent of the Holders of not less
than a majority in aggregate principal amount of the Securities of each series
issued under the Indenture then outstanding and affected, to execute
supplemental indentures adding any provisions to or changing in any manner the
rights of the Holders of each series so affected; provided that the Issuer and
the Trustee may not, without the consent of the Holder of each outstanding
Security affected thereby, (a) extend the final maturity of any such Security,
or reduce the principal amount thereof, or reduce the rate or extend the time of
payment of interest thereon, or reduce any amount payable on redemption or
repayment thereof, or change the currency of payment thereof, or impair or
affect the rights of any Holder to institute suit for the payment; or (b) reduce
the aforesaid percentage in principal amount of Securities. The Indenture
contains provisions permitting the Holders of not less than a majority in
aggregate principal amount of the Securities of all series with respect to which
a default under the Indenture shall have occurred and be continuing (voting as
one class), on behalf of the Holders of all Securities of all such series, to
waive certain past defaults under the Indenture and their consequences with
certain conditions set forth therein. Any such consent or waiver by the Holder
of this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

                  Obligations Unconditional. No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay
the principal of, premium, if any, and interest, if any, on this Security at the
time, place and rate, and in the coin or currency, herein prescribed unless
otherwise agreed between the Issuer and the registered Holder of this Security.

                  Transfer and Exchange. This Security shall be exchangeable for
Securities registered in the names of Persons other than the Depositary with
respect to such series or its nominee only as provided in this paragraph. This
Security shall be so exchangeable if (x) the Depositary notifies the Issuer that
it is unwilling or unable to continue as Depositary for such series or at any
time ceases to be a clearing agency registered as such under the Exchange Act,
or (y) the Issuer executes and delivers to the Trustee an Officers' Certificate
providing that this Security shall be so exchangeable. Securities so issued in
exchange for this Security shall be of the same series, having the same interest
rate, if any, and maturity and having the same terms as this Security, in
authorized denominations and in the aggregate having the same principal amount
as this Security and registered in such names as the Depositary for such Global
Security shall direct. As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of a Security of the series of which
this Security is a part is registrable in the registry books of the Issuer, upon
surrender of this Security for registration of transfer at the office or agency
of the Issuer in any place where the principal of (and premium, if any) and
interest, if any, on this Security are payable, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Issuer

                                      A-6
<PAGE>

and the Trustee duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of this series
and of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

                  The Securities of this series are issuable only in registered
form without coupons in minimum denominations of $1,000 or any integral multiple
of $1,000 over such minimum denomination. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series
and of like tenor of a different authorized denomination, as requested by the
Holder surrendering the same.

                  No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

                  Prior to due presentment of this Security for registration of
transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may
treat the Person in whose name this Security is registered as the owner hereof
for all purposes, whether or not this Security be overdue, and neither the
Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

                  Governing Law. This Security shall be governed by, and
construed in accordance with, the laws of the State of New York.

                  All terms used in this Security which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned to
them in the Indenture.

                                      A-7

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                                 ASSIGNMENT FORM

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

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                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

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

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

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

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

                                           Tax Identification No:
                                                                 ---------------
                                           SIGNATURE GUARANTEE:

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

                                           Signatures must be guaranteed by an
                                           "eligible guarantor institution"
                                           meeting the requirements of the
                                           Registrar, which requirements include
                                           membership or participation in the
                                           Security Transfer Agent Medallion
                                           Program ("STAMP") or such other
                                           "signature guarantee program" as may
                                           be determined by the Registrar in
                                           addition to, or in substitution for,
                                           STAMP, all in accordance with the
                                           Securities Exchange Act of 1934, as
                                           amended.

                                      A-8<PAGE>
                                                                     EXHIBIT 4.2

                         SEVENTH SUPPLEMENTAL INDENTURE

                           DATED AS OF MARCH 19, 2002

                                     BETWEEN

                          THE WILLIAMS COMPANIES, INC.,

                                    AS ISSUER

                                       AND

                  BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION,

                                   AS TRUSTEE

<PAGE>

                                Table of Contents

<Table>
<Caption>
                                                                                              Page
                                                                                              ----
<S>                                                                                           <C>
                                    ARTICLE 1
                                   DEFINITIONS

Section 1.01.  Definition of Terms..............................................................1
Section 1.02.  Rules of Construction............................................................6

                                    ARTICLE 2
                               THE SERIES OF NOTES

Section 2.01.  Title Of The Securities..........................................................6
Section 2.02.  Form And Dating..................................................................6
Section 2.03.  Limitation On Aggregate Principal Amount.........................................8
Section 2.04.  Principal Payment Date...........................................................8
Section 2.05.  Interest And Interest Dates......................................................8
Section 2.06.  Redemption......................................................................10
Section 2.07.  Transfer And Exchange...........................................................10

                                    ARTICLE 3
                               EXECUTION OF NOTES

Section 3.01.  Execution of Notes..............................................................20

                                    ARTICLE 4
                            MISCELLANEOUS PROVISIONS

Section 4.01.  Ratification....................................................................20
Section 4.02.  Counterparts....................................................................20
Section 4.03.  Applicable Procedures...........................................................20
Section 4.04.  Governing Law...................................................................20
Section 4.05.  Counterparts....................................................................21
</Table>

                                       i
<PAGE>

         SEVENTH SUPPLEMENTAL INDENTURE, dated as of March 19, 2002 (the
"SEVENTH SUPPLEMENTAL INDENTURE"), between The Williams Companies, Inc., a
corporation duly organized and existing under the laws of the State of Delaware
(the "COMPANY"), and Bank One Trust Company, National Association (successor in
interest to the First National Bank of Chicago), as trustee (the "TRUSTEE").

         WHEREAS, the Company executed and delivered the Indenture dated as of
November 10, 1997 (the "BASE INDENTURE") to the Trustee to provide for the
issuance from time to time of the Company's senior, unsecured debentures, notes,
or other evidences of indebtedness (the "SECURITIES"), to be issued in one or
more series as might be determined by the Company under the Base Indenture; and

         WHEREAS, pursuant to the terms of the Base Indenture, the Company
desires to provide for the establishment of two new series of its Securities to
be known as its 8.125% Notes due March 15, 2012 (the "8.125% NOTES") and 8.75%
Notes due March 15, 2032 (the "8.75% NOTES" and, together with the 8.125% Notes,
the "NOTES"), respectively, the form and terms of such Notes and the terms,
provisions and conditions thereof to be set forth as provided in the Base
Indenture and this Seventh Supplemental Indenture (together, the "INDENTURE");
and

         WHEREAS, the Company has requested that the Trustee execute and deliver
this Seventh Supplemental Indenture and all requirements necessary to make this
Seventh Supplemental Indenture a valid, binding and enforceable instrument in
accordance with its terms, and to make the Notes, when executed, authenticated
and delivered by the Company, the valid, binding and enforceable obligations of
the Company, have been done and performed, and the execution and delivery of
this Seventh Supplemental Indenture has been duly authorized in all respects.

         NOW THEREFORE, in consideration of the purchase and acceptance of the
Notes by the Holders thereof, and for the purpose of setting forth, as provided
in the Base Indenture, the form and terms of the Notes, the Company covenants
and agrees with the Trustee as follows:

                                    ARTICLE 1
                                   DEFINITIONS

         Section 1.01 Definition of Terms. Unless the context otherwise
requires:

                  (a) a term defined in the Base Indenture has the same meaning
         when used in this Seventh Supplemental Indenture;

<PAGE>

                  (b) a term defined anywhere in this Seventh Supplemental
         Indenture has the same meaning throughout;

                  (c) the singular includes the plural and vice versa;

                  (d) headings are for convenience of reference only and do not
         affect interpretation;

                  (e) the following terms have the meanings given to them in
         this Section 1.01(e):

         "APPLICABLE PROCEDURES" means, with respect to any transfer or exchange
of or for beneficial interests in any Global Note, the rules and procedures of
the Depositary, Euroclear or Clearstream, Luxembourg, as the case may be, that
apply to such transfer or exchange.

         "CLEARSTREAM, LUXEMBOURG" means Clearstream Banking, societe anonyme,
or any successor.

         "COMPARABLE TREASURY ISSUE" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Notes to be redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such Notes.

         "COMPARABLE TREASURY PRICE" means, with respect to any redemption date,
(1) the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
Business Day preceding such redemption date, as set forth in the daily
statistical release (or any successor release) published by the Federal Reserve
Bank of New York and designated "Composite 3:30 p.m. Quotations for U.S.
Government Securities" or (2) if such release (or any successor release) is not
published or does not contain such prices on such business day, (A) the average
of the Reference Treasury Dealer Quotations for such redemption date, after
excluding the highest and lowest such Reference Treasury Dealer Quotations, or
(B) if the Company obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such Reference Treasury Dealer Quotations.

         "DEFINITIVE NOTE" means a certificated Note in the form of Exhibit A-1
or A-2 hereto, registered in the name of the Holder thereof and issued in
accordance with Section 2.07 hereof, except that such Note shall not bear the
Global Note Legend.

         "DEPOSITARY" has the meaning assigned to it in Section 2.02(a) hereof.

                                       2
<PAGE>

         "EUROCLEAR" means Euroclear Bank S.A./N.V., as operator of the
Euroclear System or any successor.

         "EXCHANGE NOTES" means the Notes of the applicable series issued in the
Exchange Offer pursuant to Section 2.07(f) hereof; following the exchange of
interests in the applicable Rule 144A Global Notes, the Regulation S Global
Notes and any Restricted Definitive Note for Exchange Notes pursuant to an
effective registration statement, the defined term "Exchange Notes" and "Notes"
shall have the same meaning and be entitled to the same rights under the
Indenture.

         "EXCHANGE OFFER" means the exchange offer by the Company of the
Exchange Notes for the Notes of the applicable series issued in reliance upon an
exemption from registration under the Securities Act on the date hereof in
accordance with the provisions of the Registration Rights Agreement.

         "EXCHANGE OFFER REGISTRATION STATEMENT" means an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form), and all amendments and supplements to such registration statement,
including the prospectus contained therein, all exhibits thereto and all
documents incorporated by reference therein filed by the Company in accordance
with the Registration Rights Agreement in connection with the Exchange Offer.

         "GLOBAL NOTES" means, individually and collectively, any of the Notes
issued as Registered Global Securities under the Indenture.

         "GLOBAL NOTE LEGEND" means the legend set forth in Section 2.4 of the
Indenture, which is required to be placed on all Registered Global Securities
issued under the Indenture.

         "INDIRECT PARTICIPANT" means a Person who holds a beneficial interest
in a Global Note through a Participant.

         "INDEPENDENT INVESTMENT BANKER" means one of the Reference Treasury
Dealers appointed by the Company.

         "INITIAL PURCHASER" means each of Lehman Brothers Inc., J.P. Morgan
Securities Inc., Banc of America Securities LLC, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Salomon Smith Barney Inc., ABN AMRO Incorporated, Barclays
Capital Inc., BMO Nesbitt Burns Corp., BNP Paribas Securities Corp., BNY Capital
Markets, Inc., CIBC World Markets Corp., Fleet Securities, Inc., Mizuho
International plc, RBC Dominion Securities Corporation, The Royal Bank of
Scotland plc, Scotia Capital (USA) Inc., TD Securities (USA) Inc. and UBS
Warburg LLC.

                                       3
<PAGE>

         "LETTER OF TRANSMITTAL" means the letter of transmittal to be prepared
by the Company and sent to all Holders of the applicable series of Notes for use
by such Holders in connection with the Exchange Offer.

         "NON-U.S. PERSON" means a Person who is not a U.S. Person.

         "NOTES" has the meaning assigned to it in the recitals hereto.

         "PARTICIPANT" means, with respect to Euroclear or Clearstream,
Luxembourg or the Depositary, a Person who has an account with Euroclear or
Clearstream, Luxembourg or the Depositary, as the case may be (and, with respect
to The Depository Trust Company, shall include Euroclear and Clearstream,
Luxembourg).

         "PARTICIPATING BROKER DEALEr" means the Initial Purchasers and any
other broker-dealer which makes a market in the Notes and exchanges Notes in the
Exchange Offer for Exchange Notes.

         "PRIVATE PLACEMENT LEGEND" means the legend set forth in Section
2.07(f)(i) to be placed on all Notes issued under the Indenture except where
otherwise permitted by the provisions of the Indenture.

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

         "REFERENCE TREASURY DEALER" means Lehman Brothers Inc. and J.P. Morgan
Securities Inc. and their respective successors and, at the option of the
Company, additional primary U.S. Government securities dealers ("PRIMARY
TREASURY DEALERS"); provided, however, that if any of the foregoing shall cease
to be a Primary Treasury Dealer, the Company shall substitute another nationally
recognized investment banking firm that is a Primary Treasury Dealer.

         "REFERENCE TREASURY DEALER QUOTATIONS" means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the Company, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Company by such Reference Treasury Dealer at 5:00 p.m. on the
third business day preceding such redemption date.

         "REGISTRATION RIGHTS AGREEMENT" means the Registration Rights
Agreement, dated as of March 19, 2002, by and among the Company and the Initial
Purchasers, as such agreement may be amended, modified or supplemented from time
to time.

         "REGISTRAR" means the registrar, transfer agent and paying agent of the
Company in respect of the Notes which shall initially be the Trustee hereunder.

                                       4
<PAGE>

The Company may appoint additional co-registrars or terminate the appointment of
an existing registrar at any time.

         "REGULATION S" means Regulation S promulgated under the Securities Act
or any successor rule or regulation substantially to the same effect.

         "REGULATION S GLOBAL NOTE" means a Global Note in the form of Exhibit
A-1 or A-2 hereto bearing the Global Note Legend and the legend in Section
2.07(f)(ii) hereof and deposited with or on behalf of the Depositary and
registered in the name of the Depositary or its nominee.

         "RESTRICTED DEFINITIVE NOTE" means a Definitive Note bearing the
Private Placement Legend.

         "RESTRICTED PERIOD" means the period beginning on the date hereof and
ending on the later of April 28, 2002 and the completion of the distribution of
the Notes by the Initial Purchasers.

         "RULE 144" means Rule 144 promulgated under the Securities Act, any
successor rule or regulation to substantially the same effect or any additional
rule or regulation under the Securities Act that permits transfers of restricted
securities without registration such that the transferee thereof holds
securities that are freely tradeable under the Securities Act.

         "RULE 144A" means Rule 144A promulgated under the Securities Act or any
successor rule or regulation to substantially the same effect.

         "RULE 144A GLOBAL NOTE" means a Global Note in the form of Exhibit A-1
or A-2 hereto bearing the Global Note Legend and the Private Placement Legend
and deposited with or on behalf of, and registered in the name of, the
Depositary or its nominee.

         "RULE 903" means Rule 903 promulgated under the Securities Act or any
successor rule or regulation substantially to the same effect.

         "RULE 904" means Rule 904 promulgated under the Securities Act or any
successor rule or regulation substantially to the same effect.

         "SEC" means the United States Securities and Exchange Commission.

         "SECURITIES ACT" means the United States Securities Act of 1933, as
amended.

         "SHELF REGISTRATION STATEMENT" means a "shelf" registration statement
of the Company filed pursuant to the provisions of the Registration Rights
Agreement on an appropriate form under Rule 415 under the Securities Act, or

                                       5
<PAGE>

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 documents incorporated by reference therein.

         "TREASURY RATE" means, with respect to any redemption date, the rate
per annum equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date.

         "UNRESTRICTED GLOBAL NOTE" means a Global Note (other than a Regulation
S Global Note) in the form of Exhibit A-1 or A-2 attached hereto that bears the
Global Note Legend, and that is deposited with or on behalf of and registered in
the name of the Depositary, representing a series of Notes that do not bear the
Private Placement Legend.

         "UNRESTRICTED DEFINITIVE NOTE" means one or more Definitive Notes that
do not bear and are not required to bear the Private Placement Legend.

         "U.S. PERSON" means a U.S. Person as defined in Rule 902(o) under the
Securities Act.

         Section 1.02. Rules of Construction. For all purposes of this Seventh
Supplemental Indenture:

         (a) capitalized terms used herein without definition shall have the
meanings specified in the Indenture;

         (b) all references herein to Articles and Sections, unless otherwise
specified, refer to the corresponding Articles and Sections of this Seventh
Supplemental Indenture; and

         (c) the terms "herein", "hereof', "hereunder" and other words of
similar import refer to this Seventh Supplemental Indenture.

                                    ARTICLE 2
                               THE SERIES OF NOTES

         Section 2.01. Title Of The Securities. There shall be two series of
Securities designated as the "8.125% Notes due March 15, 2012" and the "8.75%
Notes due March 15, 2032", respectively.

         Section 2.02. Form And Dating.

                                       6
<PAGE>

         (a) General.

         The Notes and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit A-1 or A-2 hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note shall be dated the date of its authentication. The Notes shall
be in denominations of US$1,000 and integral multiples thereof.

         The terms and provisions contained in the Notes shall constitute, and
are hereby expressly made, a part of this Seventh Supplemental Indenture, and
the Company and the Trustee, by their execution and delivery of this Seventh
Supplemental Indenture, expressly agree to such terms and provisions and to be
bound thereby. However, to the extent any provision of any Note conflicts with
the express provisions of this Seventh Supplemental Indenture, the provisions of
this Seventh Supplemental Indenture shall govern and be controlling.

         The Company hereby designates The Depository Trust Company as the
initial Depositary for the Rule 144A Global Notes and the Regulation S Global
Notes. References to the "Depositary" herein shall refer to the Depositary
designated in the foregoing sentence.

         (a) Rule 144A Global Notes.

         Notes of each series offered and sold to QIBs shall be issued initially
in the form of Rule 144A Global Notes, which shall be deposited on behalf of the
purchasers of the Notes represented thereby with the Trustee, as custodian for
the Depositary, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. Each Rule 144A Global Note shall represent such of the
outstanding Notes as shall be specified therein and each shall provide that it
shall represent the aggregate principal amount of outstanding Notes from time to
time as conclusively reflected in the books and records of the Trustee endorsed
thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges and redemption. Any change in the principal amount of a Rule
144A Global Note to reflect the amount of any increase or decrease in the
aggregate principal amount of outstanding Notes represented thereby shall be
made by the Trustee as the custodian for the Depositary, at the direction of the
Registrar, in accordance with instructions given by the Holder thereof as
required by Section 2.07 hereof.

         (b) Regulation S Global Notes.

         Notes offered and sold in reliance on Regulation S shall be issued
initially in the form of the Regulation S Global Note, which shall be deposited
on behalf of the purchasers of the Notes represented thereby with the Trustee,
as custodian

                                       7
<PAGE>

for the Depositary, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. During the Restricted Period, interests in the
Regulation S Global Note must be held through Euroclear or Clearstream,
Luxembourg, if the holders are Participants in such systems, or indirectly
through organizations that are Participants in such systems. Following the
termination of the Restricted Period, beneficial interests in the Regulation S
Global Note may be held, directly or indirectly, in the account of any
Participant of the Depositary. Each Regulation S Global Note shall represent
such of the outstanding Notes as shall be specified therein and each shall
provide that it shall represent the aggregate principal amount of outstanding
Notes from time to time as conclusively reflected in the books and records of
the Trustee endorsed thereon and that the aggregate principal amount of
outstanding Notes represented thereby may from time to time be reduced or
increased, as appropriate, to reflect exchanges and redemption. Any change in
the principal amount of a Regulation S Global Note to reflect the amount of any
increase or decrease in the aggregate principal amount of outstanding Notes
represented thereby shall be made by the Trustee as the custodian for the
Depositary, at the direction of the Registrar, in accordance with instructions
given by the Holder thereof as required by Section 2.07 hereof.

         Section 2.03. Limitation On Aggregate Principal Amount. The aggregate
principal amount of the 8.125% Notes shall not initially exceed US$650,000,000
and the aggregate principal amount of the 8.75% Notes shall not initially exceed
US$850,000,000.

         Section 2.04. Principal Payment Date. The 8.125% Notes will mature and
principal thereof will be due and payable, together with all accrued and unpaid
interest thereon, on March 15, 2012. The 8.75% Notes will mature and principal
thereof will be due and payable, together with all accrued and unpaid interest
thereon, on March 15, 2032.

         Section 2.05 . Interest And Interest Dates. Interest on the Notes shall
be payable semi-annually on March 15 and September 15 of each year beginning on
September 15, 2002 (each, an "INTEREST PAYMENT DATE"); provided, however, that
if an Interest Payment Date would otherwise be a day that is not a Business Day,
such Interest Payment Date shall be the next succeeding Business Day, and no
additional interest shall be paid in respect of such intervening period. The
interest rate borne by the Notes will be 8.125% per annum, in the case of the
8.125% Notes, and 8.75% per annum, in the case of the 8.75% Notes, respectively,
until the Notes are paid in full subject, however, to the following provisions.
In the event that (i) the Exchange Offer Registration Statement is not filed
with the SEC on or prior to the 120th calendar day following the original issue
of the Notes, (ii) the Exchange Offer Registration Statement has not been
declared effective by the SEC on or prior to the 180th calendar day following
the original issue of the Notes, (iii) the Exchange Offer is not consummated
within 60 calendar days after

                                       8
<PAGE>

the Exchange Offer Registration Statement has been declared effective by the SEC
or (iv) a Shelf Registration Statement has not been filed or declared effective
on or prior to the applicable dates specified in the Registration Rights
Agreement (each such event in clauses (i) through (iv) above and in the next
succeeding paragraph below, a "REGISTRATION DEFAULT"), the interest rate borne
by the Notes shall be increased by an amount ("ADDITIONAL INTEREST") equal to an
additional one quarter of one percent (0.25%) per annum upon the occurrence of
each Registration Default, which rate will increase by an additional one quarter
of one percent (0.25%) per annum for each 90-day period that such Additional
Interest continues to accrue under any such circumstance, provided that the
maximum aggregate increase in the interest rate will in no event exceed one half
of one percent (0.5%) per annum; provided, that Additional Interest shall only
be payable in the case a Shelf Registration Statement is not declared effective
as aforesaid with respect to Notes that have the right to be included, and whose
inclusion has been requested, in the Shelf Registration Statement, in the manner
specified in the Registration Rights Agreement. Following the cure of all
Registration Defaults applicable to the respective Notes, the accrual of
Additional Interest will cease and the interest rate will revert to 8.125% per
annum for the 8.125% Notes and 8.75% per annum for the 8.75% Notes.

         If a Shelf Registration Statement is declared effective but shall
thereafter become unusable by a Holder of the Notes for any reason (whether or
not the Company had the right to prevent the Holders from distributing Notes
during any period pursuant to the Registration Rights Agreement) without being
succeeded within two Business Days by a post-effective amendment thereto which
cures the failure and that is immediately declared effective, the Notes included
in such Shelf Registration Statement will bear Additional Interest at a rate
equal to one quarter of one percent (0.25%) per annum for the first 90-day
period (or portion thereof) beginning on the date that such Shelf Registration
Statement ceases to be usable, which rate shall be increased by an additional
one quarter of one percent (0.25%) per annum at the beginning of each subsequent
90-day period, provided that the maximum aggregate increase in the interest rate
will in no event exceed one-half of one percent (0.5%) per annum. Upon the Shelf
Registration Statement once again becoming usable, the interest rate borne by
the Notes included therein will be reduced to the applicable original interest
rate if the Company is otherwise in compliance with the Registration Rights
Agreement with respect to such Notes at that time.

         For all purposes of this Seventh Supplemental Indenture, the term
interest shall include "Additional Interest".

         The amount of interest payable on the Notes will be computed on the
basis of a 360-day year of twelve 30-day months.

                                       9
<PAGE>

         The Company shall notify the Trustee within five Business Days after
each and every date (an "EVENT Date") on which an event occurs in respect of
which Additional Interest is required to be paid. The obligation to pay
Additional Interest shall be deemed to accrue from and including the day
following the applicable Event Date. Additional Interest shall be paid by
depositing with the Trustee for the benefit of the Holders of the Notes entitled
to receive such Additional Interest, on or before the applicable Interest
Payment Date, immediately available funds in sums sufficient to pay the
Additional Interest then due. Additional Interest shall be payable to the Person
otherwise entitled to be paid the interest payable on the Notes on such Interest
Payment Date.

         Section 2.06. Redemption. The Notes will be redeemable in whole or in
part, at the option of the Company, at any time at a redemption price equal to
the greater of (1) 100% of the principal amount of the Notes to be redeemed and
(2) the sum of the present values of the remaining scheduled payments of
principal and interest thereon discounted to the redemption date on a semiannual
basis (assuming a 360-day year consisting of twelve 30-day months) at the
Treasury Rate, plus 37.5 basis points plus accrued interest thereon to the date
of redemption.

         Section 2.07. Transfer And Exchange.

         (a) Transfer and Exchange of Global Notes.

         A Global Note may not be transferred as a whole except by the
Depositary to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor
Depositary. All Global Notes will be exchanged by the Company for Definitive
Notes if (i) the Company delivers to the Trustee notice from the Depositary
stating that it is unwilling or unable to continue to act as a clearing agency
for the Notes or is no longer a clearing agency registered under the Exchange
Act or other applicable law and, in either case, a successor Depositary is not
appointed by the Company within 90 days after the date of such notice; (ii) the
Company in its sole discretion determines that the Global Notes (in whole but
not in part) should be exchanged for Definitive Notes and delivers a written
notice to such effect to the Trustee; or (iii) an Event of Default with respect
to the Notes of such series has occurred and has not been cured, disregarding
for this purpose any requirement of notice or that the default exist for a
specified period of time; provided that in no event shall a Regulation S Global
Note be exchanged by the Company for Definitive Notes prior to the expiration of
the Restricted Period. Upon the occurrence of any of the preceding events,
Definitive Notes shall be issued in such names as the Depositary shall instruct
the Trustee.

         (b) Transfer and Exchange of Beneficial Interests in the Global Notes.

                                       10
<PAGE>

         The transfer and exchange of beneficial interests in the Global Notes
shall be effected through the Depositary in accordance with the provisions of
the Indenture and the applicable procedures of the Depositary. Transfers of
beneficial interests in the Global Notes also shall require compliance with
either subparagraph (i) or (ii) below, as applicable, as well as one or more of
the other following subparagraphs, as applicable:

                  (i) Transfer of Beneficial Interests in the Same Type of
         Global Note. Beneficial interests in any Rule 144A Global Note may be
         transferred to Persons who take delivery thereof in the form of a
         beneficial interest in a Rule 144A Global Note in accordance with the
         transfer restrictions set forth in the Private Placement Legend.
         Beneficial interests in any Regulation S Global Note may be transferred
         to Persons who take delivery thereof in the form of a beneficial
         interest in a Regulation S Global Note; provided, however, that prior
         to the expiration of the Restricted Period beneficial interests in the
         Regulation S Global Note may only be held through Euroclear of
         Clearstream, Luxembourg, if holders are Participants in such systems,
         or indirectly through organizations that are Participants in such
         systems. Beneficial interests in any Unrestricted Global Note may be
         transferred to Persons who take delivery thereof in the form of a
         beneficial interest in an Unrestricted Global Note. No written orders
         or instructions shall be required to be delivered to the Registrar to
         effect the transfers described in this Section 2.07(b)(i).

                  (ii) All Other Transfers and Exchanges of Beneficial Interests
         in Global Notes. In connection with all transfers and exchanges of
         beneficial interests that are not subject to Section 2.07(b)(i) above,
         and, subject to any other requirement in this Section 2.07, the
         transferor of such beneficial interest must deliver to the Registrar:
         (1) a written order from a Participant or an Indirect Participant given
         to the Depositary, Euroclear or Clearstream, Luxembourg in accordance
         with the Applicable Procedures directing the Depositary to credit or
         cause to be credited a beneficial interest in a Global Note of another
         type in an amount equal to the beneficial interest to be transferred or
         exchanged and (2) instructions given in accordance with the Applicable
         Procedures containing information regarding the Participant account to
         be credited with such increase or (B), subject to Section 2.07(a), (1)
         a written order from a Participant or an Indirect Participant given to
         the Depositary, Euroclear or Clearstream, Luxembourg in accordance with
         the Applicable Procedures directing the Depositary, Euroclear or
         Clearstream, Luxembourg to cause to be issued a Definitive Note in an
         amount equal to the beneficial interest to be exchanged and (2)
         instructions given by the Depositary, Euroclear or Clearstream,
         Luxembourg to the Registrar containing information regarding the Person
         in whose name such Definitive Note shall be registered to effect the
         exchange; provided that in no event shall Definitive

                                       11
<PAGE>

         Notes be issued upon the exchange of beneficial interests in the
         Regulation S Global Note prior to the expiration of the Restricted
         Period. Upon satisfaction of all of the requirements for transfer or
         exchange of beneficial interests in Global Notes contained herein and
         in the Indenture and the Notes or otherwise applicable under the
         Securities Act, the Trustee shall adjust the principal amount of the
         relevant Global Note(s) pursuant to Section 2.07(g) hereof.

                  (iii) Transfer and Exchange of Beneficial Interests in a Rule
         144A Global Note or a Regulation S Global Note for Beneficial Interests
         in an Unrestricted Global Note. A beneficial interest in a Rule 144A
         Global Note may be exchanged by any holder thereof for a beneficial
         interest in an Unrestricted Global Note or transferred to a Person who
         takes delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note if (x) the exchange or transfer complies with
         the requirements of Section 2.07(b)(ii) above and (y):

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the holder of the beneficial interest to be
                  transferred, in the case of an exchange, or the transferee, in
                  the case of a transfer, certifies in the applicable Letter of
                  Transmittal or via the Depositary's book-entry system that it
                  is not (1) a broker- dealer, (2) a Person participating in the
                  distribution of the Exchange Notes or (3) a Person who is an
                  affiliate (as defined in Rule 144) of the Company, and such
                  Letter of Transmittal or book- entry system certification
                  shall satisfy the requirements of Section 2.07(b)(ii);

                           (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                           (C) such transfer is effected by a Participating
                  Broker-Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                           (D) such transfer is effected pursuant to Rule 144 of
                  the Securities Act, a letter in the form of Exhibit B with the
                  certification set forth in paragraph 3(a) thereof is
                  completed, and, if the Registrar so requests or the Applicable
                  Procedures so require, an Opinion of Counsel to the effect
                  that the transfer is permitted, and that upon transfer the
                  Notes will not be restricted under the Securities Act, is
                  furnished to the Registrar.

                                       12
<PAGE>

         If any such transfer is effected at a time when an Unrestricted Global
Note has not yet been issued, the Company shall issue and, upon receipt of an
Issuer Order in accordance with the Indenture, the Trustee shall authenticate
one or more Unrestricted Global Notes in an aggregate principal amount equal to
the aggregate principal amount of beneficial interests so transferred.

                  (iv) Transfer of Beneficial Interests to and from Regulation S
         Global Notes.

                           (A) Transfer of Beneficial Interests in a Regulation
                  S Global Note Prior to the Termination of the Restricted
                  Period for Beneficial Interests in a Rule 144A Global Note. A
                  beneficial interest in any Regulation S Global Note may be
                  transferred to a Person who takes delivery thereof in the form
                  of a beneficial interest in a Rule 144A Global Note, if (x)
                  the transfer complies with the requirements of Section
                  2.07(b)(ii) above, and (y) the holder of the beneficial
                  interest in the Regulation S Global Note delivers to the
                  Trustee and the Registrar a letter in the form of Exhibit B
                  with the certification set forth in paragraph 1 thereof
                  completed.

                           (B) Transfer of Beneficial Interests in a Regulation
                  S Global Note Following the Termination of the Restricted
                  Period for Beneficial Interests in an Unrestricted Global
                  Note. A beneficial interest in any Regulation S Global Note
                  following the termination of the Restricted Period may be
                  transferred to a Person who takes delivery thereof in the form
                  of a beneficial interest in an Unrestricted Global Note, if
                  (x) the transfer complies with the requirements of Section
                  2.07(b)(ii) above and (y) the holder of the Regulation S
                  Global Note delivers to the Registrar a letter in the form of
                  Exhibit B with the certification set forth in paragraph 3(b)
                  thereof completed.

                           (C) Transfer of Beneficial Interests in a Rule 144A
                  Global Note for Beneficial Interests in a Regulation S Global
                  Note. A beneficial interest in any Rule 144A Global Note may
                  be transferred to a Person who takes delivery thereof in the
                  form of a beneficial interest in a Regulation S Global Note,
                  if (x) the transfer complies with the requirements of Section
                  2.07(b)(ii) above and (y) the holder of the beneficial
                  interest in the Rule 144A Global Note delivers to the
                  Registrar a letter in the form of Exhibit B with the
                  certification set forth in paragraph 2 thereof completed.

                                       13
<PAGE>

         (c) Exchange of Beneficial Interests in Global Notes for Definitive
Notes.

                  (i) Beneficial Interests in Rule 144A Global Notes or
         Regulation S Global Notes to Unrestricted Definitive Notes. Subject to
         Section 2.07(a), a holder of a beneficial interest in a Rule 144A
         Global Note or Regulation S Global Note may exchange such beneficial
         interest for an Unrestricted Definitive Note only if such exchange is
         in accordance with the Applicable Procedures, and, if the Registrar so
         requests or the Applicable Procedures so require, an Opinion of Counsel
         or other certification to the effect that the exchange is permitted,
         and that upon exchange the Notes will not be restricted under the
         Securities Act, is furnished to the Registrar.

                  (ii) Beneficial Interests in Unrestricted Global Notes to
         Unrestricted Definitive Notes. A holder of a beneficial interest in an
         Unrestricted Global Note may, in the circumstances described in Section
         2.07(a), exchange such beneficial interest for an Unrestricted
         Definitive Note.

         Any exchange pursuant to this Section 2.07(c) shall satisfy the
requirements of Section 2.07(b)(ii). In any such case, the Trustee shall cause
the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.07(g) hereof, and the Company shall execute
and the Trustee, upon receipt of an Issuer Order in accordance with the
Indenture, shall authenticate and deliver to the Person designated in the
instructions a Definitive Note in the appropriate principal amount. Any
Restricted Definitive Note issued in exchange for a beneficial interest in a
Global Note pursuant to this Section 2.07(c) shall be registered in such name or
names and in such authorized denomination or denominations as the holder of such
beneficial interest shall instruct the Registrar through instructions from the
Depositary and the Participant or Indirect Participant. The Trustee shall
deliver such Definitive Notes to the Persons in whose names such Notes are so
registered.

         (d) Transfer and Exchange of Definitive Notes for Definitive Notes.
Upon request by a Holder of Definitive Notes and such Holder's compliance with
the provisions of this Section 2.07(d), the Registrar shall register the
transfer or exchange of Definitive Notes. Prior to such registration of transfer
or exchange, the requesting Holder shall present or surrender to the Registrar
the Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by his attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.07(d).

                                       14
<PAGE>

                  (i) Restricted Definitive Notes to Restricted Definitive
         Notes. Any Restricted Definitive Note may be transferred to and
         registered in the name of Persons who take delivery thereof in the form
         of a Restricted Definitive Note if the Registrar receives the
         following:

                           (A) if the transfer will be made pursuant to Rule
                  144A, then the transferor must deliver a letter in the form of
                  Exhibit B with the certification set forth in paragraph 1
                  thereof completed,

                           (B) if the transfer will be made to a Non-U.S. Person
                  in an offshore transaction in accordance with Rule 903 or 904
                  under the Securities Act, then the transferor must deliver a
                  letter in the form of Exhibit B with the certification set
                  forth in paragraph 2 thereof completed; and

                           (C) if the transfer will be made pursuant to any
                  other exemption from the registration requirements of the
                  Securities Act, then the transferor must deliver an Opinion of
                  Counsel and/or other certification in form and substance
                  acceptable to the Registrar and the Company.

                  (ii) Restricted Definitive Notes to Unrestricted Definitive
         Notes. Any Restricted Definitive Note may be exchanged by the Holder
         thereof for an Unrestricted Definitive Note or transferred to a Person
         or Persons who take delivery thereof in the form of an Unrestricted
         Definitive Note if:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the Holder, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal, that it is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                           (B) any such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                           (C) any such transfer is effected by a Participating
                  Broker Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                                       15
<PAGE>

                           (D) such transfer is effected pursuant to Rule 144 of
                  the Securities Act, a letter in the form of Exhibit B with the
                  certification set forth in paragraph 3(a) thereof completed,
                  and, if the Trustee and the Registrar so request or the
                  Applicable Procedures so require, an Opinion of Counsel to the
                  effect that the transfer is permitted, and that upon transfer
                  the Notes will not be restricted under the Securities Act, is
                  furnished to the Trustee and Registrar.

                  (iii) Unrestricted Definitive Notes to Unrestricted Definitive
         Notes. A Holder of Unrestricted Definitive Notes may transfer such
         Notes to a Person who takes delivery thereof in the form of an
         Unrestricted Definitive Note. Upon receipt of a request to register
         such a transfer, the Registrar shall register the Unrestricted
         Definitive Notes pursuant to the instructions from the Holder thereof.

         (e) Exchange Offer; Shelf Registration Statement

                  (i) Upon the occurrence of the Exchange Offer in accordance
         with the Registration Rights Agreement, the Company shall issue and,
         upon receipt of an Issuer Order in accordance with the Indenture, the
         Trustee shall authenticate (x) one or more Unrestricted Global Notes in
         an aggregate principal amount equal to the principal amount of the
         beneficial interests in the Rule 144A Global Notes and Regulation S
         Global Notes tendered for acceptance by Persons that certify in the
         applicable Letters of Transmittal that (A) they are not broker-
         dealers, (B) they are not participating in a distribution of the
         Exchange Notes and (C) they are not affiliates (as defined in Rule 144)
         of the Company, and accepted for exchange in the Exchange Offer and (y)
         Definitive Notes in an aggregate principal amount equal to the
         principal amount of the Restricted Definitive Notes accepted for
         exchange in the Exchange Offer. Concurrently with the issuance of such
         Notes, the Trustee shall cause the aggregate principal amount of the
         applicable Rule 144A Global Notes and/or Regulation S Global Notes to
         be reduced accordingly, and the Company shall execute and the Trustee
         shall, upon receipt of an Issuer Order in accordance with the
         Indenture, authenticate and deliver to the Persons designated by the
         Holders of the Restricted Definitive Notes so accepted Unrestricted
         Definitive Notes in the appropriate principal amount.

                  (ii) Following the effectiveness of a Shelf Registration
         Statement the Company shall issue and, upon receipt of an Issuer Order
         in accordance with the Indenture, the Trustee shall authenticate from
         time to time (x) one or more Unrestricted Global Notes, or, if there
         shall be at the time one or more Unrestricted Global Notes outstanding
         and such increase can be effected in accordance with Applicable
         Procedures, the Trustee

                                       16
<PAGE>

         shall increase or cause to be increased the aggregate principal amount
         thereof, in each case in an aggregate principal amount equal to the
         principal amount of the beneficial interests in the Global Notes sold
         by Persons that certify as to the consummation of such sale under the
         Shelf Registration Statement in a manner acceptable to the Trustee and
         the Company and (y) Unrestricted Definitive Notes in an aggregate
         principal amount equal to the principal amount of the Restricted
         Definitive Notes sold by Persons that certify as to the consummation of
         such sale under the Shelf Registration Statement in a manner acceptable
         to the Trustee and the Company. Concurrently with the issuance of such
         Unrestricted Global Notes, the Trustee shall cause the aggregate
         principal amount of the applicable Rule 144A Global Notes and/or the
         Regulation S Global Notes to be reduced accordingly, and the Company
         shall execute and the Trustee shall, upon receipt of an Issuer Order in
         accordance with the Indenture, authenticate and deliver to the Persons
         designated by the Holders of Restricted Definitive Notes so sold
         Unrestricted Definitive Notes in the appropriate principal amount.

         (f) Legends.

         The following legends shall appear on the face of all Global Notes and
Definitive Notes issued under the Indenture unless specifically stated otherwise
in the applicable provisions of the Indenture.

                  (i) Private Placement Legend. (A) Except as permitted by
         subparagraph (B) below, each Note (and all Notes issued in exchange
         therefor or substitution thereof) shall bear the legend in
         substantially the following form:

         "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING THIS
SECURITY, AGREES FOR THE BENEFIT OF THE WILLIAMS COMPANIES, INC. THAT (a) THIS
SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED OTHER THAN (1) TO
THE WILLIAMS COMPANIES, INC., (2) IN A TRANSACTION ENTITLED TO AN EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (3)
SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A"), TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS
A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM
NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A (AS

                                       17
<PAGE>

INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON
THE REVERSE OF THIS SECURITY), (4) OUTSIDE THE UNITED STATES IN A TRANSACTION
MEETING THE REQUIREMENTS OF REGULATION S UNDER THE SECURITIES ACT, (5) PURSUANT
TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURIITES ACT,
SUBJECT, IN THE CASE OF CLAUSES (2), (4) OR (5), TO THE RECEIPT BY THE WILLIAMS
COMPANIES, INC. OF AN OPINION OF COUNSEL OR SUCH OTHER EVIDENCE ACCEPTABLE TO
THE WILLIAMS COMPANIES, INC. THAT SUCH RESALE, PLEDGE OR TRANSFER IS EXEMPT FROM
THE REGISTRATION REQUIREMENTS OF THE SECURIITES ACT OR (6) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT AND THAT (b) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE OF THE
RESALE RESTRICTIONS REFERRED TO HEREIN AND DELIVER TO THE TRANSFEREE (OTHER THAN
A QUALIFIED INSTITUTIONAL BUYER) PRIOR TO THE SALE A COPY OF THE TRANSFER
RESTRICTIONS APPLICABLE HERETO (COPIES OF WHICH MAY BE OBTAINED FROM THE
TRUSTEE).

         THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A
REGISTRATION RIGHTS AGREEMENT (AS SUCH TERM IS DEFINED IN THE INDENTURE REFERRED
TO ON THE REVERSE HEREOF) AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY
AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.

         BECAUSE OF THE FOREGOING RESTRICTIONS, PURCHASERS ARE ADVISED TO
CONSULT LEGAL COUNSEL PRIOR TO MAKING ANY RESALE, PELDGE OR TRANSFER OF ANY OF
THE NOTES. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME."

                           (B) Notwithstanding the foregoing, any Note which is
                  (i) a Regulation S Global Note (and any Note issued in
                  exchange therefor or substitution thereof) after the
                  Restricted Period, (ii) a Note which has been exchanged or
                  transferred pursuant to the Exchange Offer Registration
                  Statement or the Shelf Registration Statement, or (iii) a Note
                  which has been transferred in accordance with Rule 144,
                  provided that in such case an Opinion of Counsel is delivered
                  which states that the Note does not have to bear the Private
                  Placement Legend in the cases where such opinion is required
                  under this Indenture, shall not bear the Private Placement
                  Legend.

                                       18
<PAGE>

                  (ii) Regulation S Global Note Legend. The Regulation S Global
         Note shall bear a legend in substantially the following form:

         "THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A
REGISTRATION RIGHTS AGREEMENT (AS SUCH TERMS IS DEFINED IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF) AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE
BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS
AGREEMENT.

         DURING THE RESTRICTED PERIOD (AS DEFINED IN THE INDENTURE REFERRED TO
ON THE REVERSE HEREOF), INTERESTS IN THIS REGULATION S GLOBAL NOTE MAY ONLY BE
HELD THROUGH EUROCLEAR AND CLEARSTREAM, LUXEMBOURG."

         (g) Cancellation and/or Adjustment of Global Notes.

         At such time as all beneficial interests in a particular Global Note
have been exchanged for Definitive Notes or a particular Global Note has been
redeemed, repurchased or canceled in whole and not in part, each such Global
Note shall be returned to or retained and canceled by the Trustee in accordance
with the Indenture. At any time prior to such cancellation, if any beneficial
interest in a Global Note is exchanged for or transferred to a Person who will
take delivery thereof in the form of a beneficial interest in another Global
Note or for Definitive Notes, the principal amount of Notes represented by such
Global Note shall be reduced accordingly and an endorsement shall be made on
such Global Note by the Trustee or by the Depositary to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to a Person
who will take delivery thereof in the form of a beneficial interest in another
Global Note, such other Global Note shall be increased accordingly and an
endorsement shall be made on such Global Note by the Trustee or by the
Depositary to reflect such increase.

         The Registrar shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer or exchange imposed
under the Indenture, this Seventh Supplemental Indenture or under applicable law
with respect to any transfer or exchange of any interest in any Note (including
any transfers between or among Participants, Indirect Participants or beneficial
owners of interests in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by,
and to do so if and when expressly required by, the terms of the Indenture or
this Seventh Supplemental Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.

                                       19
<PAGE>

                                    ARTICLE 3
                               EXECUTION OF NOTES

         Section 3.01. Execution of Notes. The Notes shall be executed as
follows:

         The Notes shall be signed on behalf of the Company by its Chairman of
the Board, its President, one of its Vice Presidents or its Treasurer, under its
corporate seal which may, but need not, be attested. Such signatures may be the
manual or facsimile signatures of the present or any future such officers. The
seal of the Company may be in the form of a facsimile thereof and may be
impressed, affixed, imprinted or otherwise reproduced on the Notes.
Typographical and other minor errors or defects in any such reproduction of the
seal or any such signature shall not affect the validity or enforceability of
any Note that has been duly authenticated and delivered by the Trustee.

         In case any officer of the Company who shall have signed any of the
Notes shall cease to be such officer before the Note so signed shall be
authenticated and delivered by the Trustee or disposed of by the Company, such
Note nevertheless may be authenticated and delivered or disposed of as though
the person who signed such Note had not ceased to be such officer of the
Company; and any Note may be signed on behalf of the Company by such persons as,
at the actual date of the execution of such Note, shall be the proper officers
of the Company, although at the date of the execution and delivery of this
Seventh Supplemental Indenture any such person was not such an officer.

                                    ARTICLE 4
                            MISCELLANEOUS PROVISIONS

         Section 4.01. Ratification. The Indenture, as supplemented and amended
by this Seventh Supplemental Indenture, is in all respects hereby adopted,
ratified and confirmed.

         Section 4.02. Counterparts. This Seventh Supplemental Indenture may be
executed in any number of counterparts, each of which when so executed shall be
deemed an original; and all such counterparts shall together constitute but one
and the same instrument.

         Section 4.03. Applicable Procedures. Notwithstanding anything else
herein, the Company shall not be required to permit a transfer to a Global Note
that is not permitted by the Applicable Procedures.

         Section 4.04. Governing Law. THIS SEVENTH SUPPLEMENTAL INDENTURE AND
EACH NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF

                                       20
<PAGE>

         NEW YORK WITHOUT REGARD TO THE CHOICE OF LAW PRINCIPLES THEREOF.

         Section 4.05. Counterparts. The Seventh Supplemental Indenture may be
executed in any number of counterparts, each of which so executed shall be
deemed to be an original, but all such counterparts shall together constitute on
and the same instrument.

                                       21
<PAGE>

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

                                       THE WILLIAMS COMPANIES, INC.,

                                       By:       /s/ JAMES G. IVEY
                                          --------------------------------------
                                          Name:  James G. Ivey
                                          Title: Treasurer

                                       BANK ONE TRUST COMPANY, N.A.,
                                          as Trustee

                                       By:       /s/ CHRISTOPHER HOLLY
                                          --------------------------------------
                                          Name:  Christopher Holly
                                          Title:

                                       22

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