Document:

exv4w1

 

Exhibit 4.1

TRANSCONTINENTAL GAS PIPE LINE CORPORATION, as Company

and

JPMORGAN CHASE BANK, N.A., as Trustee

INDENTURE

Dated as of December 17, 2004

Floating Rate Senior Notes due April 15, 2008

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	TIA Section
	 	Indenture Section

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

________________________

N.A. means not applicable

* This Cross-Reference Table is not part of this Indenture

 

\

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE1
	 	 	 	 
	Section 1.01 Definitions.
	 	 	1	 
	Section 1.02 Other Definitions
	 	 	6	 
	Section 1.03 Incorporation by Reference of Trust Indenture Act
	 	 	6	 
	Section 1.04 Rules of Construction
	 	 	7	 
	ARTICLE II
	 	 	 	 
	THE SECURITIES
	 	 	 	 
	Section 2.01 Form and Dating
	 	 	7	 
	Section 2.02 Execution and Authentication
	 	 	8	 
	Section 2.03 Registrar and Paying Agent
	 	 	9	 
	Section 2.04 Paying Agent to Hold Money in Trust
	 	 	9	 
	Section 2.05 Holder Lists
	 	 	10	 
	Section 2.06 Transfer and Exchange
	 	 	10	 
	Section 2.07 Certificated Securities
	 	 	14	 
	Section 2.08 Replacement Securities
	 	 	14	 
	Section 2.09 Outstanding Securities
	 	 	15	 
	Section 2.10 Treasury Securities
	 	 	16	 
	Section 2.11 Temporary Securities
	 	 	16	 
	Section 2.12 Cancellation
	 	 	16	 
	Section 2.13 Defaulted Interest
	 	 	16	 
	Section 2.14 Persons Deemed Owners
	 	 	16	 
	Section 2.15 CUSIP Numbers
	 	 	17	 
	ARTICLE III
	 	 	 	 
	COVENANTS
	 	 	 	 
	Section 3.01 Payment of Securities
	 	 	17	 
	Section 3.02 Maintenance of Office or Agency
	 	 	17	 
	Section 3.03 SEC Reports; Financial Statements
	 	 	18	 
	Section 3.04 Compliance Certificate
	 	 	18	 
	Section 3.05 Limitation on Liens
	 	 	19	 
	Section 3.06 Limitation on Sale and Lease-Back Transactions
	 	 	22	 

i

 

	 	 	 	 	 
	ARTICLE IV
	 	 	 	 
	CONSOLIDATION, MERGER AND SALE
	 	 	 	 
	Section 4.01 Limitation on Mergers and Consolidations
	 	 	23	 
	Section 4.02 Successors Substituted
	 	 	23	 
	ARTICLE V
	 	 	 	 
	DEFAULTS AND REMEDIES
	 	 	 	 
	Section 5.01 Events of Default
	 	 	24	 
	Section 5.02 Acceleration
	 	 	25	 
	Section 5.03 Other Remedies
	 	 	26	 
	Section 5.04 Waiver of Existing Defaults
	 	 	27	 
	Section 5.05 Control by Majority
	 	 	27	 
	Section 5.06 Limitations on Suits
	 	 	27	 
	Section 5.07 Rights of Holders to Receive Payment
	 	 	28	 
	Section 5.08 Collection Suit by Trustee
	 	 	28	 
	Section 5.09 Trustee May File Proofs of Claim
	 	 	28	 
	Section 5.10 Priorities
	 	 	29	 
	Section 5.11 Undertaking for Costs
	 	 	29	 
	ARTICLE VI
	 	 	 	 
	TRUSTEE
	 	 	 	 
	Section 6.01 Duties of Trustee
	 	 	29	 
	Section 6.02 Rights of Trustee
	 	 	30	 
	Section 6.03 Individual Rights of Trustee
	 	 	31	 
	Section 6.04 Trustee’s Disclaimer
	 	 	32	 
	Section 6.05 Notice of Defaults
	 	 	32	 
	Section 6.06 Reports by Trustee to Holders
	 	 	32	 
	Section 6.07 Compensation and Indemnity
	 	 	32	 
	Section 6.08 Replacement of Trustee
	 	 	33	 
	Section 6.09 Successor Trustee by Merger, etc
	 	 	34	 
	Section 6.10 Eligibility; Disqualification
	 	 	34	 
	Section 6.11 Preferential Collection of Claims Against Company
	 	 	35	 
	ARTICLE VII
	 	 	 	 
	DISCHARGE OF INDENTURE
	 	 	 	 
	Section 7.01 Termination of Company’s Obligations
	 	 	35	 
	Section 7.02 Application of Trust Money
	 	 	37	 
	Section 7.03 Repayment to Company
	 	 	38	 
	Section 7.04 Reinstatement
	 	 	38	 

ii

 

	 	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	AMENDMENTS
	 	 	 	 
	Section 8.01 Without Consent of Holders
	 	 	38	 
	Section 8.02 With Consent of Holders
	 	 	39	 
	Section 8.03 Compliance with Trust Indenture Act
	 	 	40	 
	Section 8.04 Revocation and Effect of Consents
	 	 	40	 
	Section 8.05 Notation on or Exchange of Securities
	 	 	41	 
	Section 8.06 Trustee to Sign Amendments, etc.
	 	 	41	 
	ARTICLE IX
	 	 	 	 
	REDEMPTION
	 	 	 	 
	Section 9.01 Notices to Trustee
	 	 	42	 
	Section 9.02 Selection of Securities to be Redeemed
	 	 	42	 
	Section 9.03 Notices to Holders
	 	 	42	 
	Section 9.04 Effect of Notices of Redemption
	 	 	43	 
	Section 9.05 Deposit of Redemption Price
	 	 	43	 
	Section 9.06 Securities Redeemed in Part
	 	 	44	 
	Section 9.07 Optional Redemption
	 	 	44	 
	ARTICLE X
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	Section 10.01 Trust Indenture Act Controls
	 	 	44	 
	Section 10.02 Notices
	 	 	44	 
	Section 10.03 Communication by Holders with Other Holders
	 	 	45	 
	Section 10.04 Certificate and Opinion as to Conditions Precedent
	 	 	45	 
	Section 10.05 Statements Required in Certificate or Opinion
	 	 	46	 
	Section 10.06 Rules by Trustee and Agents
	 	 	46	 
	Section 10.07 Legal Holidays
	 	 	46	 
	Section 10.08 No Recourse Against Others
	 	 	46	 
	Section 10.09 Governing Law
	 	 	47	 
	Section 10.10 No Adverse Interpretation of Other Agreements
	 	 	47	 
	Section 10.11 Successors
	 	 	47	 
	Section 10.12 Severability
	 	 	47	 
	Section 10.13 Counterpart Originals
	 	 	47	 
	Section 10.14 Table of Contents, Headings, etc
	 	 	47	 

iii

 

     INDENTURE dated as of December 17, 2004 between Transcontinental Gas Pipe
Line Corporation, a Delaware corporation (the “Company”), and JPMorgan Chase
Bank, N.A., as trustee (the “Trustee”).

     Each party agrees as follows for the benefit of the other parties and for
the equal and ratable benefit of the Holders of the Company’s Floating Rate
Senior Notes due April 15, 2008 (the “Securities”).

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01 Definitions.

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

     “Agent” means any Registrar or Paying Agent.

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

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

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

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

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

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

1

 

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

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

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

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

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

     “Credit Agreement” means the Credit Agreement dated as of May 3, 2004, by
and among The Williams Companies, Inc., the Company, Northwest Pipeline
Corporation, as Borrowers; and the banks named therein, as Banks; Bank of
America, N.A., as Syndication Agent; JPMorgan Chase Bank, N.A., The Bank of
Nova Scotia and The Royal Bank of Scotland plc, as Co-Documentation Agents; and
Citigroup Global Markets Inc. and Banc of America Securities LLC, as Joint Lead
Arrangers and Co-Book Runners, including any related notes, guarantees,
collateral documents, instruments and agreements executed in connection
therewith, and in each case as amended, modified, renewed, refunded, replaced
or refinanced from time to time.

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

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

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

2

 

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

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

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

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

     “Hedging Obligations” means, with respect to any specified Person, the
obligations of such Person incurred in the normal course of business and
consistent with past practices and not for speculative purposes under:

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

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

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

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

     “Holder” means a Person in whose name a Security is registered.

     “Indebtedness” means indebtedness which is for money borrowed from others.

     “Indenture” means this Indenture as amended or supplemented from time to
time.

     “Initial Issue Date” means the first date on which the Securities are
issued under this Indenture.

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

3

 

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

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

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

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

     “Officers’ Certificate” means a certificate signed by two Officers of a
Person.

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

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

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

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

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

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

4

 

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

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

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the Company’s Floating Rate Senior Notes due April 15,
2008, to be issued pursuant to this Indenture.

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

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

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

     “Stated Maturity” means, with respect to any Security, the date specified
in such Security as the fixed date on which the principal of such Security is
due and payable.

     “Subsidiary” of any Person means a corporation more than 50% of the
outstanding voting stock of which is owned, directly or indirectly, by such
Person or by one or more other Subsidiaries of such Person, or by such Person
and one or more other Subsidiaries of such Person. For the purposes of this
definition, “voting stock” means stock which ordinarily has voting power for
the election of directors, whether at all times or only so long as no senior
class of stock has such voting power by reason of any contingency.

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

5

 

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

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

     “Williams” means The Williams Companies, Inc.

     “Williams Group Affiliates” means Williams and its Subsidiaries other than
the Company and its Subsidiaries.

     Section 1.02 Other Definitions

	 	 	 	 	 
	Term 	 	Defined in Section
	“Agent Members”
	 	 	2.01	(c)
	“DTC”
	 	 	2.03	 
	“Global Security”
	 	 	2.01	(b)
	“Paying Agent”
	 	 	2.03	 
	“Registrar”
	 	 	2.03	 
	“Regulation S”
	 	 	2.01	(b)
	“Regulation S Global Securities”
	 	 	2.01	(b)
	“Rule 144A”
	 	 	2.01	(b)
	“Rule 144A Global Securities”
	 	 	2.01	(b)
	“Sale and Lease-Back Transaction”
	 	 	3.06	 

     Section 1.03 Incorporation by Reference of Trust Indenture Act

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

     “commission” means the SEC.

     “indenture securities” means the Securities.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Company or any other
obligor on the indenture securities.

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

6

 

     Section 1.04 Rules of Construction

     Unless the context otherwise requires:

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

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

     (3) “or” is not exclusive;

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

     (5) provisions apply to successive events and transactions.

ARTICLE II

THE SECURITIES

     Section 2.01 Form and Dating

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

     (b) Global Securities. Securities offered and sold to a QIB in reliance
on Rule 144A under the Securities Act (“Rule 144A”) shall be issued initially
in the form of one or more permanent global Securities in definitive, fully
registered form without interest coupons (the “Rule 144A Global Securities”)
with the global securities legend and restricted securities legend set forth in
Section 2.06 and numbered from 1 upward with the prefix “RA” and Securities
offered and sold in reliance on Regulation S under the Securities Act
(“Regulation S”) shall be issued initially in the form of one or more permanent
global Securities in definitive, fully registered form without interest coupons
(the “Regulation S Global Securities”) with the global securities legend and
restricted securities legend set forth in Section 2.06 and numbered from 1
upward with the prefix “RS” (each, a “Global Security”), which shall be
deposited on behalf of the purchasers of the Securities represented thereby
with the Trustee, at its New York office, as custodian for the Depositary (or
with such other custodian as the Depositary may direct), and registered in the
name of the Depositary or a nominee of the Depositary, duly executed by the

7

 

Company and authenticated by the Trustee as hereinafter provided. The
aggregate principal amount of the Global Securities may from time to time be
increased or decreased by adjustments made on the records of the Trustee and
the Depositary or its nominee as hereinafter provided.

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

     The Company shall execute and the Trustee shall, in accordance with this
Section 2.01(c), authenticate and deliver initially one or more Rule 144A
Global Securities and Regulation S Global Securities that (i) shall be
registered in the name of the Depositary for such Global Securities or the
nominee of such Depositary and (ii) shall be delivered by the Trustee to such
Depositary or pursuant to such Depositary’s instructions or held by the Trustee
as custodian for the Depositary.

     Members of, or participants in, the Depositary (“Agent Members”) shall
have no rights under this Indenture with respect to any Global Security held on
their behalf by the Depositary or by the Trustee as the custodian of the
Depositary or under such Global Security, and the Depositary may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or impair, as between the Depositary and its Agent Members, the operation of
customary practices of such Depositary governing the exercise of the rights of
a holder of a beneficial interest in any Global Security.

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

     Section 2.02 Execution and Authentication

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

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

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

     The Trustee shall authenticate (i) for original issue on the Initial Issue
Date, Securities in the aggregate principal amount of $75,000,000 and (ii) any
amount of additional Securities specified by the Company, in each case, upon a
written order of the Company signed by one Officer of the Company. Such order
shall specify the amount of the Securities to be authenticated and the date of
original issue thereof. The aggregate principal amount of Securities

8

 

outstanding at any time may not exceed the aggregate principal amount of
Securities authorized for issuance by the Company pursuant to one or more
written orders of the Company, except as provided in Section 2.08 hereof.
Subject to the foregoing, the aggregate principal amount of Securities that may
be issued under this Indenture shall not be limited.

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

     Section 2.03 Registrar and Paying Agent

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

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

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

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

     Section 2.04 Paying Agent to Hold Money in Trust

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

9

 

     Section 2.05 Holder Lists

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

     Section 2.06 Transfer and Exchange

     (a) Transfer and Exchange of Global Securities.

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

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

     (iii) In connection with any transfer of a Global Security, the
transferor and the transferee shall complete the certifications contained
on the Assignment Form on the reverse of the related Global Security, if
the transfer is within the period referred to in such Assignment Form,
and in connection with any transfer of a Global Security pursuant to
Regulation S, the transferor shall also complete the Regulation S Letter
contained on the reverse of the related Global Security, and in each case
shall deliver such certifications and/or Regulation S Letter, as the case
may be, to the Registrar as a condition to any such transfer.

     (iv) If a Global Security is exchanged for Securities in definitive
registered form pursuant to this Section 2.06 or Section 2.07, such
Securities may be exchanged only in accordance with such procedures as
are substantially consistent with the provisions of this Section 2.06
(including the certification and other requirements set

10

 

forth on the reverse of the Securities intended to ensure that such
transfers comply with Rule 144A or Regulation S, as the case may be, or
are otherwise in compliance with the requirements of the Securities Act)
and such other procedures as may from time to time be adopted by the
Company.

     (b) Legend.

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

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

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

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

     (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM
THIS SECURITY OR AN INTEREST HEREIN IS

11

 

TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND; AND

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

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

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

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

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

     (i) To permit registrations of transfers and exchanges, the Company
shall execute and the Trustee shall authenticate certificated Securities
and Global Securities at the Registrar’s or co-Registrar’s request. No
service charge shall be made for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to
cover any transfer tax, assessments, or similar governmental charge
payable in connection therewith (other than any such transfer taxes,
assessments or similar governmental charge payable upon exchange or
transfer pursuant to Sections 2.11, 8.05 and 9.06).

12

 

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

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

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

     (e) No Obligation of the Trustee.

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

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

13

 

     Section 2.07 Certificated Securities

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

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

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

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

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

     Section 2.08 Replacement Securities

     If any mutilated Security is surrendered to the Trustee, or the Company
and the Trustee receive evidence to their satisfaction of the destruction, loss
or theft of any Security, the Company shall issue and the Trustee shall
authenticate a replacement Security, but only if the

14

 

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

     Every replacement Security is an additional obligation of the Company.

     In case any such mutilated, destroyed, lost or stolen Security has become
or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.

     The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.

     Section 2.09 Outstanding Securities

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

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

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

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

15

 

     Section 2.10 Treasury Securities

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

     Section 2.11 Temporary Securities

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

     Section 2.12 Cancellation

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

     Section 2.13 Defaulted Interest

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

     Section 2.14 Persons Deemed Owners

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

16

 

     Section 2.15 CUSIP Numbers

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

ARTICLE III

COVENANTS

     Section 3.01 Payment of Securities

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

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

     Section 3.02 Maintenance of Office or Agency

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

     The Company may also from time to time designate one or more other offices
or agencies where the Securities may be presented or surrendered for any or all
such purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in the

17

 

Borough of Manhattan, The City of New York for such purposes. The Company
shall give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or
agency. The Company hereby designates the Corporate Trust Office of the
Trustee as one such office or agency of the Company in accordance with Section
2.03 hereof.

     Section 3.03 SEC Reports; Financial Statements

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

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

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

     (d) Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officer’s Certificates).

     Section 3.04 Compliance Certificate

     (a) The Company shall deliver to the Trustee, on or prior to the last day
of the fifth month after the end of each fiscal year of the Company, a
statement signed by two Officers of the Company (one of whom shall be the
principal financial, principal accounting or principal executive officer of the
Company), which statement need not constitute an Officers’ Certificate,
complying with TIA Section 314(a)(4) and stating that in the course of
performance by the signing Officers of the Company of their duties as such
Officers, they would normally obtain knowledge of the keeping, observing,
performing and fulfilling by the Company, of its obligations under this
Indenture, and further stating, as to each such Officer signing such statement,
that to the best of his knowledge, the Company has kept, observed, performed
and

18

 

fulfilled each and every covenant contained in this Indenture and is not
in default in the performance or observance of any of the terms, provisions and
conditions hereof (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which such Officer may
have knowledge and what action the Company is taking or proposes to take with
respect thereto).

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

     Section 3.05 Limitation on Liens

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

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

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

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

19

 

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

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

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

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

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

     (i) mortgages upon rights-of-way;

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

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

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

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

20

 

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

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

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

     (q) easements, exceptions or reservations in any property of the Company
or a Subsidiary of the Company granted or reserved for the purpose of
pipelines, roads, telecommunication equipment and cable, streets, alleys,
highways, railroad purposes, the removal of oil, gas, coal or other minerals or
timber, and other like purposes, or for the joint or common use of real
property, facilities and equipment, which do not materially impair the use of
such property for the purposes for which it is held by the Company or such
Subsidiary of the Company;

     (r) rights reserved to or vested in any municipality or public authority
to control or regulate any property of the Company or a Subsidiary of the
Company, or to use such property in any manner which does not materially impair
the use of such property for the purposes for which it is held by the Company
or such Subsidiary of the Company;

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

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

     (u) zoning laws and ordinances;

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

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

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

21

 

     (y) any mortgage of the Company securing any Credit Facility and all
Obligations and Hedging Obligations relating to such Indebtedness (but
excluding any Credit Facility with Williams or any Williams Group Affiliate, as
lender);

     (z) any mortgage in favor of the Company;

     (aa) any mortgage existing on the date of this Indenture;

     (bb) any mortgage on accounts receivable and related assets and proceeds
thereof arising in connection with a Permitted Receivables Financing; and

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

     In the event that the Company or a Subsidiary of the Company shall
hereafter secure the Securities equally and ratably with any other obligation
or Indebtedness pursuant to the provisions of this Section 3.5, the Trustee is
hereby authorized at the written direction of the Company to enter into an
indenture supplemental hereto and to take such action, if any, as necessary to
enable it to enforce the rights of the Holders of the Securities so secured,
equally and ratably with such other obligation or Indebtedness.

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

     Section 3.06 Limitation on Sale and Lease-Back Transactions

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

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

     (b) the Company shall covenant that it will apply an amount equal to the
net proceeds from the sale of the Principal Property so leased to the
retirement (other than any mandatory retirement) of its Funded Indebtedness
within 90 days of the effective date of any such Sale and Lease-Back
Transaction, provided that the amount to be applied to the retirement of Funded
Indebtedness of the Company shall be reduced by (i) the principal amount of any
Securities delivered by the Company to the Trustee within 90 days after such
Sale and Lease-Back Transaction for retirement and cancellation, and (ii) the
principal amount of Funded

22

 

Indebtedness, other than Securities, voluntarily retired by the Company
within 90 days following such Sale and Lease-Back Transaction, provided,
further, the covenant contained in this Section 3.6 shall not apply to, and
there shall be excluded from Attributable Debt in any computation under this
Section 3.6, Attributable Debt with respect to any Sale and Lease-Back
Transaction if:

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

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

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

ARTICLE IV

CONSOLIDATION, MERGER AND SALE

     Section 4.01 Limitation on Mergers and Consolidations

     The Company shall not consolidate with or merge into any other entity or
convey, transfer or lease its properties and assets substantially as an
entirety to any Person, unless (a) the corporation, limited liability company,
limited partnership, joint stock company, or trust formed by such consolidation
or into which the Company is merged or the Person which acquires by conveyance,
transfer or lease the properties and assets of the Company substantially as an
entirety shall expressly assume, by a supplemental indenture hereto, executed
and delivered to the Trustee, in form reasonably satisfactory to the Trustee,
the due and punctual payment of the principal of and interest on all the
Securities, and the performance of every covenant of this Indenture on the part
of the Company to be performed or observed, (b) immediately after giving effect
to such transaction, no Default or Event of Default, shall have happened and be
continuing, and (c) the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel each stating that such consolidation,
merger, conveyance, transfer or lease and such supplemental indenture comply
with this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with.

     Section 4.02 Successors Substituted

     In case of any such consolidation, merger, sale, lease, conveyance or
transfer, and following such an assumption by the successor Person, such
successor Person shall succeed to and be substituted for the Company, with the
same effect as if it had been named herein. Such successor Person may cause to
be signed, and may issue either in its own name or in the name of the Company
prior to such succession any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the
Trustee; and, upon the order of such successor Person, instead of the Company,
and subject to all the terms, conditions and limitations in this Indenture
prescribed, the Trustee shall authenticate and shall

23

 

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

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

ARTICLE V

DEFAULTS AND REMEDIES

     Section 5.01 Events of Default

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

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

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

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

     (4) the entry by a court having jurisdiction in the premises of (A)
a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any

24

 

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

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

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

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

     Section 5.02 Acceleration

     If an Event of Default (other than an Event of Default specified in clause
(4) or (5) of Section 5.01 hereof) occurs and is continuing, the Trustee by
notice to the Company, or the Holders of at least 25% in principal amount of
the then outstanding Securities by notice to the Company and the Trustee, may
declare the principal of and premium, if any, and accrued and unpaid interest
on all then outstanding Securities to be due and payable immediately. Upon any
such declaration the amounts due and payable on the Securities, as determined
in accordance with the next succeeding paragraph, shall be due and payable
immediately. If an Event of Default specified in clause (4) or (5) of Section
5.01 hereof occurs, the principal of and premium, if any, and accrued and
unpaid interest on all Securities then outstanding shall ipso facto become and
be immediately due and payable without any declaration, notice or other act on
the part of the Trustee or any Holder.

25

 

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

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

     (A) all overdue interest on all Securities,

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

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

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

and

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

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

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

     Section 5.03 Other Remedies

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

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

26

 

     Section 5.04 Waiver of Existing Defaults

     Subject to Sections 5.07 and 8.02 hereof, the Holders of a majority in
principal amount of the outstanding Securities by notice to the Trustee may
waive an existing Default or Event of Default and its consequences (including
waivers obtained in connection with a tender offer or exchange offer for the
Securities or a solicitation of consents in respect of the Securities, provided
that in each case such offer or solicitation is made to all Holders of the
Securities then outstanding on equal terms), except (1) a continuing Default or
Event of Default in the payment of the principal of, or premium, if any, or
interest on the Securities or (2) a continuing Default in respect of a
provision that under Section 8.02 hereof cannot be amended without the consent
of each Holder affected. Upon any such waiver, such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
cured for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Default or impair any right consequent thereon.

     Section 5.05 Control by Majority

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

     Section 5.06 Limitations on Suits

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

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

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

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

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

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

27

 

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

     Section 5.07 Rights of Holders to Receive Payment

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

     Section 5.08 Collection Suit by Trustee

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

     Section 5.09 Trustee May File Proofs of Claim

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

28

 

     Section 5.10 Priorities

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

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

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

     
          Third: to the Company.

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

     Section 5.11 Undertaking for Costs

     In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as a trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in the suit, having
due regard to the merits and good faith of the claims or defenses made by the
party litigant. This Section does not apply to a suit by the Trustee, a suit
by a Holder pursuant to Section 5.07 hereof, or a suit by a Holder or Holders
of more than 10% in principal amount of the Securities then outstanding.

ARTICLE VI

TRUSTEE

     Section 6.01 Duties of Trustee

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

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

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

     (2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements

29

 

of this Indenture. However, with respect to certificates or
opinions specifically required by any provision hereof to be furnished to
it, the Trustee shall examine such certificates and opinions to determine
whether or not, on their face, they appear to conform substantially to
the requirements of this Indenture.

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

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

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

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

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

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

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

     Section 6.02 Rights of Trustee

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

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

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

30

 

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

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

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

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

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

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

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

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

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

     Section 6.03 Individual Rights of Trustee

     The Trustee in its individual or any other capacity may become the owner
or pledgee of Securities and may otherwise deal with the Company or any of its
Affiliates with the same rights

31

 

it would have if it were not Trustee. Any Agent may do the same with like
rights. However, the Trustee is subject to Sections 6.10 and 6.11 hereof.

     Section 6.04 Trustee’s Disclaimer

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

     Section 6.05 Notice of Defaults

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

     Section 6.06 Reports by Trustee to Holders

     On or before July 15 of each year, beginning with July 15, 2005, the
Trustee shall mail to Holders a brief report dated as of a date convenient to
the Trustee no more than 60 nor less than 45 days prior thereto, that complies
with TIA Section 313(a); provided, however, that if no event described in TIA
Section 313(a) has occurred within the twelve months preceding the reporting
date, no report need be transmitted. The Trustee also shall comply with TIA
Section 313(b). The Trustee shall also transmit by mail all reports as
required by TIA Sections 313(c) and 313(d).

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

     Section 6.07 Compensation and Indemnity

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

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

32

 

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

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

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

     Without prejudice to any other rights available to the Trustee under
applicable law, when the Trustee incurs expenses or renders services after an
Event of Default specified in Section 5.01(4) or (5) hereof occurs, the
expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

     The obligations of the Company under this Section shall survive the
satisfaction and discharge of this Indenture and the resignation or removal of
the Trustee.

     Section 6.08 Replacement of Trustee

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

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

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

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

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

     (4) the Trustee otherwise becomes incapable of acting.

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

33

 

then outstanding may appoint a successor Trustee to replace the successor
Trustee appointed by the Company.

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

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

     A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Thereupon the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it
as Trustee to the successor Trustee, subject to the lien provided for in
Section 6.07 hereof. Notwithstanding replacement of the Trustee pursuant to
this Section 6.08 hereof, the obligations of the Company under Section 6.07
hereof shall continue for the benefit of the retiring Trustee.

     Section 6.09 Successor Trustee by Merger, etc

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

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

     Section 6.10 Eligibility; Disqualification

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

34

 

     This Indenture shall always have a Trustee who satisfies the requirements
of TIA Sections 310(a)(1), 310(a)(2) and 310(a)(5). The Trustee is subject to
and shall comply with the provisions of TIA Section 310(b) during the period of
time required by this Indenture. Nothing in this Indenture shall prevent the
Trustee from filing with the SEC the application referred to in the penultimate
paragraph of TIA Section 310(b). For purposes of clause (i) of the proviso to
TIA Section 310(b), the following indentures are specifically described: the
Senior Indenture dated as of July 15, 1996 between the Company and JPMorgan
Chase Bank, N.A., as successor trustee, the Senior Indenture dated as of
January 16, 1998 between the Company and JPMorgan Chase Bank, N.A., as
successor trustee, the Indenture dated as of August 17, 2001 between the
Company and JPMorgan Chase Bank, N.A., as successor trustee, and the Indenture
dated as of July 3, 2002 between the Company and JPMorgan Chase Bank, N.A., as
successor trustee.

     Section 6.11 Preferential Collection of Claims Against Company

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

ARTICLE VII

DISCHARGE OF INDENTURE

     Section 7.01 Termination of Company’s Obligations

     (a) This Indenture shall cease to be of further effect (except that the
Company’s obligations under Section 6.07 hereof and the Trustee’s and Paying
Agent’s obligations under Sections 7.02 and 7.03 hereof shall survive), and the
Trustee, on demand of the Company, shall execute proper instruments
acknowledging the satisfaction and discharge of this Indenture and the
Securities, when:

     (1) either

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

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

     (i) have become due and payable,

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

     (iii) are to be called for redemption within one year
under arrangements satisfactory to the Trustee for the giving
of notice of redemption by the Trustee in the name, and at
the expense, of the Company,

35

 

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

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

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

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

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

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

     (3) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit or, insofar as clauses (4) and (5)
of Section 5.01 hereof are concerned, at any time during the period
ending on the 91st day after the date of such deposit (it being
understood that this condition shall not be deemed satisfied until the
expiration of such period);

     (4) the Company shall have delivered to the Trustee an Opinion of
Counsel from a nationally recognized counsel acceptable to the Trustee or
a tax ruling to the effect that the Holders of the Securities will not
recognize income, gain or loss for federal income tax purposes as a
result of the Company’s exercise of its option under this Section 7.01(b)
and will be subject to federal income tax on the same amount and in the

36

 

same manner and at the same times as would have been the case if
such option had not been exercised;

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

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

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

     (8) if the Securities are to be redeemed, the Company shall have
irrevocably instructed the Trustee to give notice of such redemption in
the name, and at the expense, of the Company, under arrangements
satisfactory to the Trustee.

     In such event, this Indenture shall cease to be of further effect (except
as provided in the next succeeding paragraph).

     However, the Company’s obligations in Sections 2.03, 2.04, 2.05, 2.06,
2.07, 2.08, 3.02, 4.01, 6.07, 6.08, 7.01 and 7.04 hereof and the Trustee’s and
Paying Agent’s obligations in Sections 7.02 and 7.03 hereof shall survive until
the Securities are no longer outstanding. Thereafter, only the Company’s
obligations in Section 6.07 hereof and the Trustee’s and Paying Agent’s
obligations in Sections 7.02 and 7.03 hereof shall survive such satisfaction
and discharge.

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

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

     Section 7.02 Application of Trust Money

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

37

 

     Section 7.03 Repayment to Company

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

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

     Section 7.04 Reinstatement

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

ARTICLE VIII

AMENDMENTS

     Section 8.01 Without Consent of Holders

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

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

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

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

     (4) to add any additional Events of Default;

38

 

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

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

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

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

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

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

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

     Upon the request of the Company accompanied by a resolution of the Board
of Directors of the Company authorizing the execution of any such supplemental
indenture, and upon receipt by the Trustee of the documents described in
Section 8.06 hereof, the Trustee shall join with the Company in the execution
of any supplemental indenture authorized or permitted by the terms of this
Section and make any further appropriate agreements and stipulations that may
be therein contained. After an amendment, supplement or waiver under this
Section 8.01 becomes effective, the Company shall mail to the Holders of each
Security affected thereby a notice briefly describing the amendment, supplement
or waiver. Any failure of the Company to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any
such supplemental indenture.

     Section 8.02 With Consent of Holders

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

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

39

 

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

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

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

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

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

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

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

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

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

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

     Section 8.03 Compliance with Trust Indenture Act

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

     Section 8.04 Revocation and Effect of Consents

     A consent to an amendment (which includes a supplement) or waiver by a
Holder is a continuing consent by the Holder and every subsequent Holder of a
Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the

40

 

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

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

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

     Section 8.05 Notation on or Exchange of Securities

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

     Section 8.06 Trustee to Sign Amendments, etc.

     The Trustee shall sign any amendment, waiver or supplemental indenture
authorized pursuant to this Article if the amendment, waiver or supplemental
indenture does not adversely affect the rights, duties, liabilities or
immunities of the Trustee. If it does, the Trustee may, but need not, sign it.
In signing or refusing to sign such amendment, waiver or supplemental
indenture, the Trustee shall receive, and subject to Section 6.01 hereof, shall
be fully protected in relying upon, an Opinion of Counsel and an Officers’
Certificate, as conclusive evidence that such amendment, waiver or supplemental
indenture is authorized or permitted by this Indenture, that it is not
inconsistent herewith, and that it will be valid and binding upon the Company
in accordance with its terms.

41

 

ARTICLE IX

REDEMPTION

     Section 9.01 Notices to Trustee

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

     Section 9.02 Selection of Securities to be Redeemed

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

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

     Section 9.03 Notices to Holders

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

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

     (i) the Redemption Date;

     (ii) the Redemption Price, or if not yet known, the manner in which
it will be calculated;

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

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

42

 

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

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

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

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

     The Trustee shall not be responsible for the calculation of the Redemption
Price. The Company shall notify the Trustee of the Redemption Price promptly
after the calculation thereof.

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

     Section 9.04 Effect of Notices of Redemption

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

     Section 9.05 Deposit of Redemption Price

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

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

43

 

     Section 9.06 Securities Redeemed in Part

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

     Section 9.07 Optional Redemption

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

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

ARTICLE X

MISCELLANEOUS

     Section 10.01 Trust Indenture Act Controls

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

     Section 10.02 Notices

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

If to the Company:

Transcontinental Gas Pipe Line Corporation

2800 Post Oak Blvd.

Houston, Texas 77056

Telecopier No.: (713) 215-2435

Attention: Treasurer

If to the Trustee:

JPMorgan Chase Bank. N.A.

4 New York Plaza

15th Floor

New York, New York 10004

Telecopier No.: (212) 623-6167

44

 

     Attention: Institutional Trust Services

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

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

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

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

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

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

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

     Section 10.03 Communication by Holders with Other Holders

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

     Section 10.04 Certificate and Opinion as to Conditions Precedent

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

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

45

 

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

     Notwithstanding the foregoing, no such Opinion of Counsel shall be
required in connection with the issuance of the Securities on the Initial Issue
Date.

     Section 10.05 Statements Required in Certificate or Opinion

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

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

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

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

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

     Section 10.06 Rules by Trustee and Agents

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

     Section 10.07 Legal Holidays

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

     Section 10.08 No Recourse Against Others

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

46

 

     Section 10.09 Governing Law

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

     Section 10.10 No Adverse Interpretation of Other Agreements

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

     Section 10.11 Successors

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

     Section 10.12 Severability

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

     Section 10.13 Counterpart Originals

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

     Section 10.14 Table of Contents, Headings, etc

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

[Signature Page Follows]

47

 

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

	 	 	 	 	 	 	 
	 	 	Company:
	 
	 	 	 	 	 	 
	 	 	TRANSCONTINENTAL GAS PIPE LINE CORPORATION
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Richard D. Rodekohr	 	 
	

	 	 	 	
	 	 
	

	 	 	 	Name: Richard D. Rodekohr	 	 
	

	 	 	 	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	Trustee:
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Joanne Adamis	 	 
	

	 	 	 	
	 	 
	

	 	 	 	Name: Joanne Adamis	 	 
	

	 	 	 	Title: Vice President	 	 

48

 

EXHIBIT A

[FACE OF SECURITY]

[Global Securities Legend]

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

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

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

     (2) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS SECURITY,
EXCEPT (A) TO TRANSCONTINENTAL GAS PIPE LINE CORPORATION OR ANY OF ITS
SUBSIDIARIES, (B) TO A PERSON WHOM THE SELLER

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

A-1

 

REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER PURCHASING FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C) IN AN OFFSHORE
TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF THE SECURITIES ACT, (D) IN
A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, OR
(E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH OF THE CASES,
IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER APPLICABLE JURISDICTION;

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

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

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

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

Floating Rate Senior Note due April 15, 2008

	 	 	 
	

	 	CUSIP [                   ]
	 
	 	 
	No. [RA] [RS] –                    

	 	$                    

     Transcontinental Gas Pipe Line Corporation, a Delaware corporation (the
“Company”), for value received promises to pay to                                       
or registered assigns, the principal sum of                    United States Dollars [or
such greater or lesser amount as is indicated on the Schedule of Exchanges of
Securities on the other side of this Security] ** on April 15, 2008 (the
“Stated Maturity Date”).

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

A-2

 

	 	 	 
	Initial Issue Date:

	 	December 17, 2004
	 
	Interest Payment Dates:

	 	January 15, April 15, July 15 and October 15.
	 
	Record Dates:

	 	January 1, April 1, July 1 and October 1.
	 
	Interest Reset Dates:

	 	January 15, April 15, July 15 and October 15.
	 
	Initial Interest Reset Date

	 	April 15, 2005

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

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

     Dated: __________________

	 	 	 	 	 	 	 
	 	 	TRANSCONTINENTAL GAS PIPE LINE CORPORATION
	 
	 	 	 	 	 	 
	

	 	By:
	 	
	 	 
	

	 	Name:
	 	
	 	 
	

	 	Title:
	 	
	 	 

Certificate of Authentication:

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

	 	 	 
	By:

	 	

	

	 	Authorized Officer

A-3

 

[REVERSE OF SECURITY]

TRANSCONTINENTAL GAS PIPE LINE CORPORATION

Floating Rate Senior Note due April 15, 2008

     This Security is one of a duly authorized issue of Floating Rate Senior
Notes due April 15, 2008 (the “Securities”) of Transcontinental Gas Pipe Line
Corporation, a Delaware corporation (the “Company”).

     1. Interest. Interest on this Security will accrue from the most recent
Interest Payment Date (as set forth on the face of this Security, each an
"Interest Payment Date”) to which interest has been paid or duly provided for
or, if no interest has been paid or duly provided for, from the Initial Issue
Date. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, subject to certain exceptions described herein,
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 Record Date (as set
forth on the face of this Security, each a “Record Date”) immediately prior to
an Interest Payment Date (whether or not a Business Day); provided, however,
that interest payable on the Stated Maturity Date (or any Redemption Date) will
be payable to the person to whom the principal hereof shall be payable.

     If an Interest Payment Date (other than the Stated Maturity Date or a
Redemption Date) would fall on a day that is not a Business Day, such Interest
Payment Date shall be the following day that is a Business Day, except if such
Business Day falls in the next calendar month, such Interest Payment Date shall
be the immediately preceding day that is a Business Day. If the Stated Maturity
Date or a Redemption Date falls on a day that is not a Business Day, payment of
principal and interest due on that date shall be made on the following day that
is a Business Day and no interest shall accrue for the period from and after
the Stated Maturity Date or such Redemption Date, as the case may be, on the
payment so deferred.

     This Security will bear interest at the rate determined in accordance with
the applicable provisions below by reference to the Three-Month LIBOR Rate (as
defined below) plus 1.28%. Commencing with the Initial Interest Reset Date
specified on the face hereof, the rate at which interest on this Security is
payable shall be reset as of each Interest Reset Date (as used herein, the term
"Interest Reset Date” shall include the Initial Interest Reset Date). The
Interest Reset Dates will be the Interest Reset Dates specified on the face
hereof; provided, however, that (i) the interest rate in effect for the period
from the Initial Issue Date to the Initial Interest Reset Date specified on the
face hereof will be [                   ]% (the “Initial Interest Rate”) and (ii) the
interest rate in effect hereon for the 15 days immediately prior to the Stated
Maturity Date hereof (or, with respect to any principal amount to be redeemed
or repaid, any Redemption Date) shall be that in effect on the 15th day
preceding the Stated Maturity Date hereof or such date of redemption, as the
case may be. If any Interest Reset Date would otherwise be a day that is not a
Business Day, such Interest Reset Date shall be postponed to the next
succeeding day that is a Business Day, except if such Business Day falls in the
next calendar month, such Interest Reset Date shall be the immediately
preceding day that is a Business Day.

A-4

 

     The “Three-Month LIBOR Rate” with respect to this Security shall be
determined on the second London Banking Day (as defined below) preceding each
Interest Reset Date (each date, an “Interest Determination Date”) as follows:

     (i) As of the Interest Determination Date, JPMorgan Chase Bank,
N.A., in its capacity as calculation agent (the “Calculation Agent”),
shall determine the arithmetic mean of the offered rates for deposits in
U.S. dollars for the three-month period commencing on the applicable
Interest Reset Date that appears on Telerate Page 3750 (defined below) at
approximately 11:00 a.m., London time, on such Interest Determination
Date.

     (ii) If this rate does not appear on Telerate Page 3750, the
Calculation Agent will determine the rate on the basis of the rates at
which deposits in U.S. dollars are offered by four major banks in the
London interbank market (selected by the Calculation Agent) at
approximately 11:00 a.m., London time, on such Interest Determination
Date to prime banks in the London interbank market for a period of three
months commencing on that Interest Reset Date and in a principal amount
equal to an amount not less than U.S. $1,000,000 that is representative
for a single transaction in such market at such time. In such case, the
Calculation Agent will request the principal London office of each of the
aforesaid major banks to provide a quotation of such rate. If at least
two such quotations are provided, the rate for that Interest Reset Date
will be the arithmetic mean of the quotations, and, if fewer than two
quotations are provided as requested, the rate for that Interest Reset
Date will be the arithmetic mean of the rates quoted by three major banks
in New York City (selected by the Calculation Agent) at approximately
11:00 a.m., New York City time, on such Interest Determination Date for
loans in U.S. dollars to leading European banks for a period of three
months commencing on that Interest Reset Date and in a principal amount
equal to an amount not less than U.S. $1,000,000 that is representative
for a single transaction in such market at such time.

     (iii) if the banks so selected by the Calculation Agent are not
quoting as set forth above, the Three-Month LIBOR Rate for that Interest
Determination Date shall be the Three-Month LIBOR Rate already in effect
on the day preceding the applicable Interest Reset Date, or in the case
of the Initial Interest Reset Date, the Initial Interest Rate.

     A “London Banking Day” is any day in which dealings in U.S. dollars
are transacted in the London interbank market.

     “Telerate Page 3750” means the display page so designated on the
Moneyline Telerate, Inc. (or such other page as may replace such page on
that service or any successor service for the purpose of displaying
London interbank offered rates of major banks).

     The interest rate on this Security will 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.

A-5

 

     At the request of the Holder hereof, the Calculation Agent will provide to
the Holder hereof the interest rate hereon then in effect and, if determined,
the interest rate that will become effective as of the next Interest Reset
Date.

     Interest payments on this Security will include interest accrued to but
excluding the Interest Payment Dates or the Stated Maturity Date (or any
Redemption Date), as the case may be.

     Accrued interest hereon shall be an amount calculated by multiplying the
face amount hereof by an accrued interest factor. Such accrued interest factor
shall be computed by adding the interest factor calculated for each day in the
period for which interest is being paid. The interest factor for each such
date shall be computed by dividing the interest rate applicable to such day by
360. All percentages resulting from any calculation of the rate of interest on
this Security will be rounded, if necessary, to the nearest one
hundred-thousandth of a percentage point (0.0000001), with five one-millionths
of a percentage point rounded upward, and all dollar amounts used in or
resulting from such calculation on this Security will be rounded to the nearest
cent (with one-half cent rounded upward). The interest rate in effect on any
Interest Reset Date will be the applicable rate as reset on such date. The
interest rate applicable to any other day is the interest rate from the
immediately preceding Interest Reset Date (or, if none, the Initial Interest
Rate).

     2. Method of Payment. The Company will pay interest on the Securities
(except defaulted interest) to the Persons who are registered Holders of
Securities at the close of business on the Record Date next preceding the
Interest Payment Date (whether or not a Business Day), even if such Securities
are canceled after such Record Date and on or before such Interest Payment
Date. The Holder must surrender this Security to a Paying Agent to collect
payments of principal and premium, if any. The Company will pay the principal
of, and premium, if any, and interest on the Securities in money of the United
States of America that at the time of payment is legal tender for payment of
public and private debts. Payments in respect of the Securities represented by
a Global Security (including principal, premium, if any, and interest) will be
made by wire transfer of immediately available funds to the accounts specified
by The Depository Trust Company. The Company will make all payments in respect
of a certificated Security (including principal, premium, if any, and interest)
by mailing a check to the registered address of each Holder thereof; provided,
however, that payments on a certificated Security will be made by wire transfer
to a U.S. dollar account maintained by the payee with a bank in the United
States if such Holder elects payment by wire transfer by giving written notice
to the Trustee or the Paying Agent to such effect designating such account no
later than 30 days immediately preceding the relevant due date for payment (or
such other date as the Trustee may accept in its discretion).

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

     4. Optional Redemption. The Securities may be redeemed at any time, at
the option of the Company, in whole or from time to time in part, at a price
equal to the greater of (i) 100% of the principal amount of the Securities then
outstanding to be redeemed, or (ii) the sum of the present values of the
remaining scheduled payments of the principal amount to be redeemed and
interest thereon (assuming that the Three-Month LIBOR Rate through the Stated
Maturity Date

A-6

 

of the Securities would remain constant as of the Redemption Date),
exclusive of accrued but unpaid interest to the Redemption Date, discounted to
the Redemption Date on a bond-equivalent yield basis (assuming a 360-day year
consisting of twelve 30-day months) and at a rate per annum equal to the
Three-Month LIBOR Rate as of the Redemption Date plus 25 basis points (0.25%),
plus in each case, accrued and unpaid interest to the Redemption Date (the
“Redemption Price”).

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

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

     The Trustee shall not be responsible for the calculation of the Redemption
Price. The Company shall notify the Trustee of the Redemption Price promptly
after the calculation thereof.

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

     6. Indenture. The Company issued the Securities under an Indenture dated
as of December 17, 2004 (as amended, supplemented or otherwise modified form
time to time, the “Indenture”) between the Company and the Trustee. The terms
of the Securities include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939, as amended (15
U.S. Code Sections 77aaa-77bbbb), as in effect on the date of execution of the
Indenture (the “TIA”). The Securities are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms. The Securities are unsecured general obligations of the Company.
Capitalized terms used but not defined in this Security have the respective
meanings given to such terms in the Indenture.

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

     8. Persons Deemed Owners. Except as set forth in the Indenture, the
registered Holder of a Security shall be treated as its owner for all purposes.

A-7

 

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

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

     10. Defaults and Remedies. Events of Default include: default in payment
of interest on the Securities for 30 days; default in payment of principal of,
or premium, if any, on the Securities; default in the performance, or breach,
of any of its other covenants, warranties or agreements in the Indenture by the
Company for 90 days after written notice by the Trustee or by the Holders of at
least 25% of the aggregate principal amount of the Securities then outstanding;
certain voluntary or involuntary events involving bankruptcy, insolvency or
reorganization of the Company. If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Securities may declare the principal of, and premium, if
any, and interest on all the Securities to be immediately due and payable,
except that in the case of an Event of Default arising from certain events of
bankruptcy, insolvency or reorganization of the Company, all outstanding
Securities become due and payable immediately without further action or notice.
The amount due and payable upon the acceleration of any Security is equal to
100% of the principal amount thereof plus premium, if any, and accrued interest
to the date of payment. Holders may not enforce the Indenture or the
Securities except

A-8

 

as provided in the Indenture. The Trustee may require indemnity
reasonably satisfactory to it before it enforces the Indenture or the
Securities. Subject to certain limitations, Holders of a majority in principal
amount of the then outstanding Securities may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders notice
of any continuing default (except a default in payment of principal or premium,
if any, or interest) if it determines that withholding notice is in their
interests. The Company must furnish an annual compliance certificate to the
Trustee.

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

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

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

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

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

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

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

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

Transcontinental Gas Pipe Line Corporation

2800 Post Oak Blvd.

Houston, Texas 77056

Telecopier No.: (713) 215-2435

Attention: Treasurer

A-9

 

ASSIGNMENT FORM

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

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

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

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

Date: _______________________

	 	 	 
	Your Signature:

	 	

	

	 	(Sign exactly as your name appears on the face of this Security)

	 	 	 
	Signature Guarantee:

	 	

	

	 	(Participant in a Recognized Signature Guaranty Medallion Program)

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

CHECK ONE

	 	 	 
	(1)o

	 	to the Company or a Subsidiary thereof; or
	 
	 	 
	(2)o

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

	 	outside the United States to a “foreign person” in compliance with Rule
904 of Regulation S under the Securities Act of 1933; or
	 
	 	 
	(4)o

	 	pursuant to an effective registration statement under the Securities
Act of 1933; or

A-10

 

	 	 	 
	(5)o

	 	pursuant to an exemption from the registration requirements of the
Securities Act of 1933, provided by Rule 144 thereunder.

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

o The transferee is an Affiliate of the Company.

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

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

	 	 	 	 	 	 	 
	 

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

	 	 	 
	Signature Guarantee:

	 	

A-11

 

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

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

	 	 	 	 	 
	Dated:

	 	

	 	

	

	 	 	 	Notice: to be executed by an executive officer

A-12

 

FORM OF REGULATION S LETTER TO BE DELIVERED

IN CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S

                                      ,                   

JPMorgan Chase Bank. N.A.

4 New York Plaza

15th Floor

New York, New York 10004

Telecopier No.: (212) 623-6167

Attention: Institutional Trust Services

	 	 	 	Re: Floating Rate Senior Notes due April 15, 2008 of
Transcontinental Gas Pipe Line Corporation.

Gentlemen:

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

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

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

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

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

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

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	[Name of Transferor]
	 
	 	 	 	 	 	 
	

	 	By
	 	
	 	 

A-13

 

Authorized Signature

A-14

 

SCHEDULE OF EXCHANGES OF SECURITIES***

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount	 	Signature of
	 	 	Amount of decrease	 	Amount of increase	 	of Global Security	 	authorized Officer,
	 	 	in Principal	 	in Principal	 	following such	 	Trustee or
	 	 	Amount	 	Amount	 	decrease (or	 	Securities
	Date of Transaction
	 	of Global Security
	 	of Global Security
	 	increase)
	 	Custodian

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

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

A-15exv10w1

 

DEL MONTE FOODS COMPANY

2003 NON-EMPLOYEE DIRECTOR DEFERRED

COMPENSATION PLAN

Effective April 28, 2003

(Frozen as of December 31, 2004)

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page

	ARTICLE 1 Definitions
	 	 	1	 
	ARTICLE 2 Eligibility/Enrollment
	 	 	3	 
	2.1 Eligibility
	 	 	3	 
	2.2 Enrollment Requirements; Commencement of Participation
	 	 	3	 
	ARTICLE 3 Deferral Commitments/Vesting/Earnings Crediting
	 	 	3	 
	3.1 Election to Defer
	 	 	3	 
	3.2 Effect of Deferral Election Form
	 	 	4	 
	3.3 Withholding of Annual Deferral Amounts;
Conversion into Deferred Stock Units
	 	 	4	 
	3.4 Crediting of Dividends and Distributions
	 	 	4	 
	3.5 Payment of Account Balances
	 	 	4	 
	3.6 Vesting
	 	 	4	 
	ARTICLE 4 Withdrawal Payouts
	 	 	4	 
	4.1 Withdrawal Payout; Suspensions for Unforeseeable Financial Emergencies
	 	 	4	 
	4.2 In-Service Payout Where No Unforeseeable Financial Emergencies
	 	 	5	 
	ARTICLE 5 Termination Benefit
	 	 	5	 
	5.1 Termination Benefit
	 	 	5	 
	5.2 Payment of Termination Benefit
	 	 	5	 
	5.3 Death Prior to Completion of Termination Benefits
	 	 	5	 
	ARTICLE 6 Survivor Benefit
	 	 	6	 
	6.1 Survivor Benefit
	 	 	6	 
	6.2 Payment of Survivor Benefit
	 	 	6	 
	ARTICLE 7 Beneficiary Designation
	 	 	6	 
	7.1 Beneficiary
	 	 	6	 
	7.2 Beneficiary Designation; Spousal Consent; Change
	 	 	6	 
	7.3 Acknowledgment
	 	 	6	 
	7.4 No Beneficiary Designation
	 	 	6	 
	7.5 Doubt as to Beneficiary
	 	 	6	 

i

 

TABLE OF
CONTENTS
(continued) 

	 	 	 	 	 
	 	 	Page

	ARTICLE 8 Termination, Amendment, or Modification of Plan
	 	 	6	 
	8.1 Termination
	 	 	6	 
	8.2 Amendment
	 	 	7	 
	8.3 Effect of Payment
	 	 	7	 
	ARTICLE 9 Administration
	 	 	7	 
	9.1 Committee Duties
	 	 	7	 
	9.2 Agents
	 	 	7	 
	9.3 Binding Effect of Decisions
	 	 	7	 
	9.4 Indemnity of Committee
	 	 	7	 
	ARTICLE 10 Claims Procedures
	 	 	7	 
	10.1 Presentation of Claim
	 	 	7	 
	10.2 Notification of Decision
	 	 	8	 
	10.3 Review of a Denied Claim
	 	 	8	 
	10.4 Decision on Review
	 	 	8	 
	10.5 Legal Action
	 	 	9	 
	ARTICLE 11 Miscellaneous
	 	 	9	 
	11.1 Unsecured General Creditor
	 	 	9	 
	11.2 Company’s Liability
	 	 	9	 
	11.3 Taxes
	 	 	9	 
	11.4 Nonassignability
	 	 	9	 
	11.5 Coordination with Other Benefits
	 	 	9	 
	11.6 No Special Rights
	 	 	9	 
	11.7 Furnishing Information
	 	 	9	 
	11.8 Captions
	 	 	9	 
	11.9 Governing Law
	 	 	9	 
	11.10 Notice
	 	 	10	 
	11.11 Successors
	 	 	10	 
	11.12 Spouse’s Interest
	 	 	10	 
	11.13 Validity
	 	 	10	 
	11.14 Incompetent
	 	 	10	 
	11.15 Counterparts
	 	 	10	 

ii

 

Del Monte Foods Company

2003 Non-Employee Director Deferred Compensation Plan

Effective April 28, 2003

     The Plan was frozen as of the close of business on December 31, 2004. All
Account Balances were vested as of December 31, 2004 and no Annual Deferral
Amount was credited on account of any period after December 31, 2004.

PURPOSE

         The purpose of this Plan is to provide deferred compensation to
non-employee directors who contribute materially to the continued growth,
development and future business success of Del Monte Foods Company, a Delaware
corporation, and its affiliates. The Plan is not intended to constitute a plan
subject to the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated thereunder.

ARTICLE 1

Definitions

         For purposes hereof, unless otherwise clearly apparent from the context,
the following phrases or terms shall have the following meanings:

	1.1	 	“Account Balance” shall mean the aggregate number of Deferred Stock Units
purchased by a Participant’s Annual Deferral Amounts and adjusted in
accordance with Section 3.4 of the Plan. This account shall be a
bookkeeping entry only and shall be utilized solely as a device for the
measurement and determination of the number of shares of Common Stock to
be paid to or in respect of a Participant pursuant to the Plan.
	 
	1.2	 	“Annual Deferral Amount” shall mean that portion of a Participant’s
Compensation that a Participant elects to have and is deferred, in
accordance with Article 3, for any one Plan Year.
	 
	1.3	 	“Beneficiary” shall mean one or more persons, trusts, estates or other
entities, designated in accordance with Article 7, that are entitled to
receive benefits under the Plan upon the death of a Participant.
	 
	1.4	 	“Beneficiary Designation and Spousal Consent Form” shall mean the form
established from time to time by the Committee that a Participant executes
and returns to the Corporate Secretary to designate one or more
Beneficiaries.
	 
	1.5	 	“Board” shall mean the Board of Directors of Del Monte.
	 
	1.6	 	“Claimant” shall mean a Participant or Beneficiary who presents a claim
to Del Monte in accordance with Article 10.
	 
	1.7	 	“Code” shall mean the Internal Revenue Code of 1986, as amended from time
to time, and the regulations promulgated thereunder.
	 
	1.8	 	“Committee” shall mean the Executive Compensation Committee of the Board,
or such other committee as the Board shall appoint from time to time to
administer the Plan.

1

 

	1.9	 	“Common Stock” shall mean the common stock of Del Monte, par value $0.01
per share.
	 
	1.10	 	“Compensation” shall mean any cash or any grant of Common Stock to be
made pursuant to the “Del Monte Foods Company 2002 Stock Incentive Plan”
that is to be paid in respect of a Plan Year to a Participant.
Compensation shall not include options to purchase the stock of Del Monte.
	 
	1.11	 	“Corporate Secretary” shall mean the Corporate Secretary of Del Monte.
	 
	1.12	 	“Deferral Election Form” shall mean the form established from time to
time by the Committee that a Participant executes and returns to the
Corporate Secretary to make an election to defer Compensation under the
Plan.
	 
	1.13	 	“Deferred Stock Units” shall mean the phantom stock units comprising a
Participant’s Account Balance, each of which represents one (1) share of
Common Stock.
	 
	1.14	 	“Del Monte” shall mean the Del Monte Foods Company, a Delaware
corporation, and its successors.
	 
	1.15	 	“Director” shall mean a member of the Board who is not an employee of Del
Monte.
	 
	1.16	 	“Effective Date” shall mean the Effective Date of the Plan, which is
April 28, 2003.
	 
	1.17	 	“Fair Market Value” of a share of Common Stock with respect to any day
shall mean (a) the average of the high and low sales prices on such day of
a share of Common Stock as reported on the principal securities exchange
on which shares of Common Stock then are listed or admitted to trading, or
(b) if not so reported, the average of the closing bid and ask prices on
such day as reported on the National Association of Securities Dealers
Automated Quotation System, or (c) if not so reported, as furnished by any
member of the National Association of Securities Dealers, Inc., selected
by the Committee. In the event that the price of a share of Common Stock
shall not be so reported, the Fair Market Value of a share of Common Stock
shall be determined by the Committee in its absolute discretion.
	 
	1.18	 	“Participant” shall mean any Director (a) who elects to participate in
the Plan; (b) who complies with the enrollment requirements pursuant to
Section 2.2; (c) who commences participation in the Plan pursuant to
Section 2.2; and (d) whose Plan Agreement has not terminated.
	 
	1.19	 	“Plan” shall mean the “Del Monte Foods Company 2003 Non-Employee Director
Deferred Compensation Plan,” which shall be evidenced by this instrument
and, with respect to each Participant, by his or her Plan Agreement, as
each may be amended from time to time.
	 
	1.20	 	“Plan Agreement” shall mean a written agreement, as may be amended from
time to time, which is entered into by and between Del Monte and the
Participant. Each Plan Agreement executed by a Participant shall provide
for the entire benefit to which such Participant is entitled under the
Plan. The Plan Agreement bearing the latest date of acceptance by the
Corporate Secretary shall govern such entitlement and Del Monte’s
liability. Upon the complete payment of a Participant’s Account Balance,
each individual’s Plan Agreement and his or her status as a Participant
shall terminate. The Plan Agreement may be amended by the written consent
of both parties from time to time.

2

 

	1.21	 	“Plan Year” shall mean the period to which elections to defer
Compensation apply. The first Plan Year shall start on April 28, 2003,
and shall end on December 31, 2003, and all Plan Years thereafter
(commencing on January 1, 2004) shall be the calendar year.
	 
	1.22	 	“Survivor Benefit” shall mean the benefit set forth in Article 6.
	 
	1.23	 	“Termination” shall mean the termination of service by a Director for any
reason, including disability, other than death.
	 
	1.24	 	“Termination Benefit” shall mean the benefit set forth in Article 5.
	 
	1.25	 	“Termination Benefit Payout Form” shall mean the form established from
time to time by the Committee that a Participant executes and returns to
the Corporate Secretary to make an election as to the form and timing of
the payout of his or her Termination Benefit under the Plan.
	 
	1.26	 	“Unforeseeable Financial Emergency” shall mean an unanticipated emergency
that is caused by an event beyond the control of the Participant that
would result in severe financial hardship to the Participant resulting
from (a) a sudden and unexpected illness or accident of the Participant or
a dependent of the Participant, (b) a loss of the Participant’s property
due to casualty, or (c) such other extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the
Participant, all as determined in the sole and absolute discretion of the
Committee.

ARTICLE 2

Eligibility/Enrollment

	2.1	 	Eligibility. Eligibility to participate in the Plan shall be limited to
non-employee Directors of Del Monte.
	 
	2.2	 	Enrollment Requirements; Commencement of Participation. As a condition
to enrolling in the Plan starting as of the Effective Date, each Director
shall execute and return to the Corporate Secretary a Plan Agreement, a
Deferral Election Form, a Termination Benefit Payout Form, and a
Beneficiary Designation and Spousal Consent Form all no later than thirty
(30) days after the Effective Date. In such case, participation in the
Plan commences as soon as the enrollment requirements are met and the
Corporate Secretary accepts the foregoing documents; provided that in no
case shall Compensation for services performed before the Effective Date
be deferred under the Plan. As a condition to enrolling in the Plan at
any other time, each Director shall execute and return to the Corporate
Secretary a Plan Agreement, a Deferral Election Form, a Termination
Benefit Payout Form, and a Beneficiary Designation and Spousal Consent
Form all no later than the end of the quarter preceding the first quarter
for which Compensation shall be deferred. In such case, participation in
the Plan commences on the first day of the first quarter for which
Compensation shall be deferred, provided that the Corporate Secretary has
accepted the foregoing documents. Any Director that fails to meet the
deadlines described above shall not be permitted to enroll until the
following quarter. In addition, the Committee shall establish from time
to time such other enrollment requirements as it determines in its sole
and absolute discretion are necessary.

ARTICLE 3

Deferral Commitments/Vesting/Earnings Crediting

	3.1	 	Election to Defer. On any day of the month in each December preceding
the beginning of each Plan Year (or in the case of the first Plan Year, no
later than thirty (30) days after the Effective

3

 

	 	 	Date), a Participant may
elect to defer a certain amount of Compensation (the “Annual Deferral
Amount”). A Participant may make separate elections to defer either zero
percent (0%), fifty percent (50%), or one hundred percent (100%) of each
of such Participant’s stock Compensation and cash Compensation earned
during the applicable Plan Year. Notwithstanding the foregoing, new
Directors commencing service in the middle of a Plan Year shall be
permitted to make a deferral election as to Compensation earned during the
remainder of that Plan Year provided that the enrollment requirements of
Section 2.2 are met.
	 
	3.2	 	Effect of Deferral Election Form. Deferral elections shall be made by
delivering to the Corporate Secretary an executed Deferral Election Form,
which must be accepted by the Corporate Secretary for a valid election to
exist. For each succeeding Plan Year, a new Deferral Election Form must
be delivered to the Corporate Secretary, in accordance with Section 3.1.
If no Deferral Election Form is timely delivered for a Plan Year, no
Annual Deferral Amount shall be withheld for that Plan Year.
	 
	3.3	 	Withholding of Annual Deferral Amounts; Conversion into Deferred Stock
Units. For each Plan Year, Compensation shall be withheld to the extent
of the Annual Deferral Amount at the time the Compensation is or otherwise
would be paid to the Participant, even if that occurs after the end of the
Plan Year. The dollar value of the Annual Deferral Amount will be
converted into Deferred Stock Units (including fractions thereof) by
dividing the Annual Deferral Amount by the Fair Market Value of a share of
Common Stock as of the time Compensation is withheld; such Deferred Stock
Units will be credited to the Participant’s Account Balance at such time.
Hence, each Deferred Stock Unit represents one (1) share of Common Stock
to which the Participant is entitled upon the eventual payment of his
Account Balance. Under no circumstances shall a Participant’s Deferred
Stock Units be “reconverted” into cash or be deemed to represent any fixed
dollar amount under any provision of this Plan.
	 
	3.4	 	Crediting of Dividends and Distributions. Each Deferred Stock Unit will
be credited with dividends and special distributions at the time of such
dividend or special distribution, which will be converted into additional
Deferred Stock Units. With respect to the crediting of dividends and
special distributions, Deferred Stock Units will not be entitled to voting
rights. Each Deferred Stock Unit (or fraction thereof) will be converted
into one (1) whole share of Common Stock upon the payment of any benefit
under this Plan.
	 
	3.5	 	Payment of Account Balances. The payment of Account Balances under
Articles 4, 5, and 6 of this Plan shall be effected by issuing shares of
Common Stock to the Participant (or Beneficiary) in a number that is equal
to the number of Deferred Stock Units in such Participant’s Account
Balance as of the date of Termination (or date of withdrawal, if
applicable). No fractional shares of Common Stock will be issued under
the Plan. If the calculation of the number of shares of Common Stock to
be issued under this Plan results in fractional shares, then the number of shares of Common Stock will be rounded up to the nearest whole share of
Common Stock.
	 
	3.6	 	Vesting. A Participant shall at all times be one hundred percent (100%)
vested in his or her Account Balance.

ARTICLE 4

Withdrawal Payouts

	4.1	 	Withdrawal Payout; Suspensions for Unforeseeable Financial Emergencies.
If the Participant experiences an Unforeseeable Financial Emergency, the
Participant may petition the Committee to (a) suspend any deferrals of
Participant’s Compensation and/or (b) receive a partial

4

 

or full payout from the Plan. If, subject to the sole discretion of the Committee, the
petition for a suspension and/or payout is approved, suspension shall take
effect upon the date of approval and any payout shall be made within
thirty (30) days of the date of approval, payable in Common Stock in a
lump sum. The payout shall not exceed the lesser of the Participant’s
Account Balance, calculated as of the date the petition is approved, or
the amount reasonably needed to satisfy the Unforeseeable Financial
Emergency.

	4.2	 	In-Service Payout Where No Unforeseeable Financial Emergencies. A
Participant may elect, at any time prior to ceasing Board membership on
account of Termination, to withdraw his or her Account Balance, calculated
as of the date of such election, less a withdrawal penalty equal to ten
percent (10%) of such amount (the net amount shall be referred to as the
“Withdrawal Amount”). No partial withdrawals of the Withdrawal Amount
shall be allowed. The Participant shall make this election by giving the
Committee advance written notice of the election in a form determined from
time to time by the Committee. The Participant shall be paid the
Withdrawal Amount within thirty (30) days of his or her election under
this Section 4.2, payable in Common Stock in a lump sum, notwithstanding
any election the Participant previously may have made as to the form or
timing of benefits to be paid under this Plan. Once the Withdrawal Amount
is paid, the Participant’s participation in the Plan shall terminate and
the Participant shall not be eligible to participate in the Plan until the
beginning of the third Plan Year following the Plan Year in which the
withdrawal under this Section 4.2 was made.

ARTICLE 5

Termination Benefit

	5.1	 	Termination Benefit. In the case of Termination, the Participant shall
receive a benefit equal to his or her Account Balance.
	 
	5.2	 	Payment of Termination Benefit. A Participant shall make an election on
the Termination Benefit Payout Form to receive his or her Account Balance
as a Termination Benefit payable either as: (a) a lump sum of Common
Stock; or (b) annual installments of an equal number of shares of Common
Stock spread over a period of not more than fifteen (15) years. Lump sum
payments shall be made, and installment payments shall commence, no later
than thirty (30) days from the date of Termination. Any election made
under this section 5.2 shall apply to the Participant’s entire Account
Balance. A Participant may change his or her election as to form (lump
sum or equal annual installments) or timing of payout of the Termination
Benefit by submitting a new Termination Benefit Payout Form to the
Corporate Secretary; provided, however, that no Termination Benefit
Payout Form will be valid unless it is received, accepted, and
acknowledged in writing by the Corporate Secretary at least one (1) year
prior to Termination. The Termination Benefit Payout Form most recently
accepted by the Corporate Secretary shall govern the payout of the
Termination Benefit.
	 
	5.3	 	Death Prior to Completion of Termination Benefits. If a Participant dies
after Termination but before the Termination Benefit is paid in full,
unless upon the request of the Beneficiary, the Committee, in its sole
discretion, provides for a lump sum payment, the Participant’s unpaid
Termination Benefit payments shall continue and shall be paid to the
Participant’s Beneficiary for the remaining number of years in the
installment period selected by the Participant; provided, however, if the
Beneficiary dies prior to complete distribution of the Termination
Benefits, payments will be made to the Beneficiary’s estate over the
remaining number of years and in the same amounts as that benefit would
have been paid to the Beneficiary had the Beneficiary survived.

5

 

ARTICLE 6

Survivor Benefit

	6.1	 	Survivor Benefit. If a Participant dies while serving as a member of the
Board, the Participant’s Beneficiary shall receive a Survivor Benefit
equal to the Participant’s Account Balance.
	 
	6.2	 	Payment of Survivor Benefit. The Survivor Benefit shall be payable in
Common Stock in a lump sum. The Survivor Benefit shall be made within
thirty (30) days of the Committee’s receipt of proof of the Participant’s
death.

ARTICLE 7

Beneficiary Designation

	7.1	 	Beneficiary. Each Participant shall have the right, at any time, to
designate his or her Beneficiary (both primary as well as contingent) to
receive any benefits payable under the Plan to a Beneficiary upon the
death of a Participant. The Beneficiary designated under this Plan may be
the same as or different from the beneficiary designation under any other
plan of Del Monte in which the Participant participates.
	 
	7.2	 	Beneficiary Designation; Spousal Consent; Change. A Participant shall
designate his or her Beneficiary by executing the Beneficiary Designation
and Spousal Consent Form, and returning it to the Corporate Secretary or
its designated agent. Where required by law or by the Committee, in its
sole discretion, if the Participant names someone other than his or her
spouse as a sole and primary Beneficiary, the Beneficiary Designation and
Spousal Consent Form must be signed by that Participant’s spouse and
returned to the Corporate Secretary. A Participant shall have the right
to change a Beneficiary by executing a subsequent Beneficiary Designation
and Spousal Consent Form and otherwise complying with the terms of the
such form and the Committee’s rules and procedures, as in effect from time
to time. Upon the acceptance by the Corporate Secretary of a new
Beneficiary Designation and Spousal Consent Form, all Beneficiary
Designation and Spousal Consent Forms previously submitted shall be
cancelled. The Committee shall be entitled to rely on the last
Beneficiary Designation and Spousal Consent Form submitted by the
Participant, and accepted by the Corporate Secretary, prior to such
Participant’s death.
	 
	7.3	 	Acknowledgment. No designation or change in designation of a Beneficiary
shall be effective until accepted and acknowledged in writing by the
Corporate Secretary.

	7.4	 	No Beneficiary Designation. If a Participant fails to designate a
Beneficiary as provided in Sections 7.1 through 7.3 above, or, if all
designated Beneficiaries predecease the Participant, then the
Participant’s designated Beneficiary shall be his or her surviving spouse.
If the Participant has no surviving spouse, the benefits remaining under
the Plan shall be paid to the Participant’s estate.
	 
	7.5	 	Doubt as to Beneficiary. If the Committee has any doubt as to the proper
Beneficiary to receive payments pursuant to this Plan, the Committee shall
have the right, exercisable in its sole discretion, to withhold such
payments until this matter is resolved to the Committee’s satisfaction.

ARTICLE 8

Termination, Amendment, or Modification of Plan

	8.1	 	Termination. The Board reserves the right to terminate the Plan at any
time. Upon termination of the Plan, a Participant’s Account Balance,
calculated as of the date of Plan termination, shall be

6

 

	 	 	paid on the date
of Plan termination, payable in Common Stock in a lump sum; provided,
however, that termination of the Plan shall not affect the right of any
Participant who experienced a Termination on or before the date of such
Plan termination, or a Beneficiary of such Participant, to receive
benefits in the manner such Participant elected.
	 
	8.2	 	Amendment. The Board may, at any time, amend or modify the Plan in whole
or in part; provided, however, that no amendment or modification shall be
effective to decrease a Participant’s Account Balance, calculated as of
the effective date of the amendment or modification. In addition, no
amendment or modification of the Plan shall affect the right of any
Participant who experienced a Termination on or before the effective date
of such amendment or modification, or a Beneficiary of such Participant,
to receive benefits in the manner such Participant elected.
	 
	8.3	 	Effect of Payment. The full payment of the applicable benefit under
Articles 4, 5, or 6 of the Plan shall discharge completely Del Monte and
the Committee from all further obligations under this Plan with respect to
the Participant or his or her Beneficiary, and that Participant’s Plan
Agreement shall terminate upon such full payment of benefits.

ARTICLE 9

Administration

	9.1	 	Committee Duties. This Plan shall be administered by the Committee. The
Committee also shall have the discretion and authority to make, amend,
interpret, and enforce all appropriate rules and regulations for the
administration of this Plan and decide or resolve any and all questions
including interpretations of this Plan, as may arise in connection with
the Plan. Any Committee member must recuse himself or herself on any
matter of personal interest to such member that comes before the
Committee.
	 
	9.2	 	Agents. In the administration of this Plan, the Committee may, from time
to time, employ agents and delegate to them such administrative duties as
it sees fit and may from time to time consult with counsel, including
counsel to Del Monte.

	9.3	 	Binding Effect of Decisions. The decision or action of the Committee
with respect to any question arising out of or in connection
with the administration, interpretation, and application of the Plan and
the rules and regulations promulgated hereunder shall be final and
conclusive and binding upon all persons having any interest in the Plan.
	 
	9.4	 	Indemnity of Committee. Del Monte shall indemnify and hold harmless the
members of the Committee against any and all claims, losses, damages,
expenses or liabilities arising from any action or failure to act with
respect to this Plan, except in the case of willful misconduct by the
Committee or any of its members.

ARTICLE 10

Claims Procedures

	10.1	 	Presentation of Claim. Any Participant or Beneficiary of a deceased
Participant may deliver to the Committee a written claim for a
determination with respect to the amounts distributable to such Claimant
from the Plan. If such a claim relates to the contents of a notice
received by the Claimant, the claim must be made within sixty (60) days
after such notice was received by the Claimant. All other claims must be
made within one hundred eighty (180) days of the date on

7

 

	 	 	which the event
that caused the claim to arise occurred. The claim must state with
particularity the determination desired by the Claimant.
	 
	10.2	 	Notification of Decision. The Committee shall consider a Claimant’s
claim within sixty (60) days of the making of the claim, and shall notify
the Claimant in writing:

(a) that the Claimant’s requested determination has been made, and that
the claim has been allowed in full; or

(b) that the Committee has reached a conclusion contrary, in whole or in
part, to the Claimant’s requested determination, and such notice must set
forth in a manner calculated to be understood by the Claimant:

	(i)	 	the specific reason(s) for the denial of the
claim, or any part of it;
	 
	(ii)	 	specific reference(s) to pertinent provisions of
the Plan upon which such denial was based;
	 
	(iii)	 	a description of any additional material or
information necessary for the Claimant to perfect the claim,
and an explanation of why such material or information is
necessary; and
	 
	(iv)	 	an explanation of the claim review procedure set
forth in Section 10.3 below.

	10.3	 	Review of a Denied Claim. Within sixty (60) days after receiving a
notice from the Committee that a claim has been denied, in whole or in
part, a Claimant (or the Claimant’s duly authorized representative) may
file with the Committee a written request for a review of the denial of
the claim. Thereafter, but not later than thirty (30) days after the
review procedure begins, the Claimant (or the Claimant’s duly authorized
representative):

(a) may review pertinent documents;

(b) may submit written comments or other documents; and/or

(c) may request a hearing, which the Committee, in its sole discretion,
may grant.

	10.4	 	Decision on Review. The Committee shall render its decision on review
promptly, and not later than sixty (60) days after the filing of a written
request for review of the denial pursuant to Section 10.3, unless a
hearing is held or other special circumstances require additional time, in
which case the Committee’s decision must be rendered within one hundred
twenty (120) days after such date. Such decision must be written in a
manner calculated to be understood by the Claimant, and it must contain:

(a) specific reasons for the decision;

(b) specific reference(s) to the pertinent Plan provisions upon which the
decision was based; and

(c) such other matters as the Committee deems relevant.

8

 

	10.5	 	Legal Action. A Claimant’s compliance with the foregoing provisions of
this Article 10 is a mandatory prerequisite to a Claimant’s right to
commence any legal action with respect to any claim for benefits under
this Plan.

ARTICLE 11

Miscellaneous

	11.1	 	Unsecured General Creditor. Participants and their Beneficiaries, heirs,
successors and assigns shall have no legal or equitable right, interest or
claim in any property or assets of Del Monte. Del Monte’s assets shall
be, and remain, the general, unpledged and unrestricted assets of Del
Monte. Del Monte’s obligation under the Plan shall be merely that of an
unfunded and unsecured promise to pay money in the future with respect to
its Participants.
	 
	11.2	 	Company’s Liability. Del Monte’s liability for the payment of benefits
shall be defined only by the Plan. Del Monte shall have no obligation to
a Participant under the Plan except as expressly provided in the Plan.
	 
	11.3	 	Taxes. It shall be the sole responsibility of the Participant to
properly account for and to pay any income and self-employment tax payable
on amounts deferred or benefits paid under this Plan.
	 
	11.4	 	Nonassignability. Neither a Participant nor any other person shall have
any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage, or otherwise encumber, transfer, hypothecate or convey in
advance of actual receipt, the amounts, if any, payable hereunder, or any
part thereof, which are, and all rights to which are, expressly declared
to be unassignable and non-transferable. No part of the amounts payable
shall, prior to actual payment, be subject to seizure or sequestration for
the payment of any debts, judgments, alimony or separate maintenance owed
by a Participant or any other person, nor be transferable by operation of
law in the event of a Participant’s or any other person’s bankruptcy or
insolvency.
	 
	11.5	 	Coordination with Other Benefits. The benefits provided for a
Participant and Participant’s Beneficiary under the Plan are
in addition to any other benefits available to such Participant under any
other plan or program of Del Monte. The Plan shall supplement and shall
not supersede, modify or amend any other such plan or program except as
expressly may be provided otherwise.
	 
	11.6	 	No Special Rights. Nothing contained in this Agreement shall confer upon
any Participant any right with respect to the continuation of his or her
service with Del Monte.
	 
	11.7	 	Furnishing Information. A Participant or his or her Beneficiary will
cooperate with the Committee by furnishing any and all information
requested by the Committee and take such other actions as may be requested
in order to facilitate the administration of the Plan and the payments of
benefits hereunder, including but not limited to taking such physical
examinations as the Committee may deem necessary.
	 
	11.8	 	Captions. The captions of the articles, sections and paragraphs of this
Plan are for convenience only and shall not control or affect the meaning
or construction of any of its provisions.
	 
	11.9	 	Governing Law. The Plan will be administered in accordance with the laws
of the State of California, without reference to its principles of
conflicts of laws.

9

 

	11.10	 	Notice. Any notice or filing required or permitted to be given to the
Committee under this Plan shall be sufficient if in writing and
hand-delivered, or sent by registered or certified mail, to:

	 	 	 
	

	 	Chair, Executive Compensation Committee of the Board
of Directors
	

	 	c/o Del Monte Foods Company
	

	 	One Market at the Landmark
	

	 	San Francisco, CA 94105
	 
	 	 
	

	 	With a copy to the Corporate Secretary

	 	 	Such notice shall be deemed given as of the date of delivery or,
if delivery is made by mail, as of the date shown on the postmark
on the receipt for registration or certification.
	 
	 	 	Any notice or filing required or permitted to be given to a
Participant under this Plan shall be sufficient if in writing and
hand-delivered, or sent by mail, to the last known address of the
Participant.
	 
	11.11	 	Successors. The provisions of this Plan shall bind and inure to the
benefit of Del Monte and its successors and assigns, and the Participant,
the Participant’s Beneficiaries, and their permitted successors and
assigns.
	 
	11.12	 	Spouse’s Interest. The interest in the benefits hereunder of a spouse
of a Participant who has predeceased the Participant automatically shall
pass to the Participant and shall not be transferable by such spouse in
any manner, including but not limited to such spouse’s will, nor shall
pass such interest under the laws of intestate succession.
	 
	11.13	 	Validity. In case any provision of this Plan shall be illegal or
invalid for any reason, said illegality or invalidity shall not affect the
remaining parts hereof, but this Plan shall be construed and enforced as
if such illegal or invalid provision never had been inserted herein.
	 
	11.14	 	Incompetent. If the Committee determines in its discretion that a
benefit under this Plan is to be paid to a minor, a person declared
incompetent, or a person incapable of handling the disposition of that
person’s property, the Committee may direct payment of such benefit to the
guardian, legal representative or person having the care and custody of
such minor, incompetent or incapable person. The Committee may require
proof of minority, incompetency, incapacity or guardianship, as it may
deem appropriate prior to distribution of the benefit. Any payment of a
benefit shall be a payment for the account of the Participant and the
Participant’s Beneficiary, as the case may be, and shall be a complete
discharge of any liability under the Plan for such payment amount.
	 
	11.15	 	Counterparts. This instrument may be executed in one or more
counterparts each of which shall be legally binding and enforceable.

10

 

	 	 	IN WITNESS WHEREOF, Del Monte has executed this Plan document as of
	 
	 	 	April 28, 2003.

	 	 	 
	

	 	DEL MONTE FOODS COMPANY, a Delaware
corporation
	 
	

	 	By:                                                         
	 
	

	 	Title:                                                         

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]