Document:

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                                                                     EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT

                                   dated as of

                                 August 27, 2001

                                      among

                   TRANSCONTINENTAL GAS PIPE LINE CORPORATION

                                       and

                                 UBS WARBURG LLC

       on behalf of itself and the Initial Purchasers listed on Schedule I

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                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") is made and
entered into as of August 27, 2001, by and among TRANSCONTINENTAL GAS PIPE LINE
CORPORATION (the "COMPANY"), a corporation duly organized and existing under the
laws of the State of Delaware, and UBS Warburg, acting on behalf of itself and
the several initial purchasers listed on Schedule I hereto, (the "INITIAL
PURCHASERS").

         This Agreement is made pursuant to the Purchase Agreement dated August
22, 2001, by and among the Company and the Initial Purchasers (the "PURCHASE
AGREEMENT"), which provides for the sale by the Company to the Initial
Purchasers of $300,000,000 principal amount of its 7% Notes due 2011 (the
"SECURITIES"). The Notes are to be issued pursuant to the provisions of an
Indenture dated as of August 27, 2001 (as amended, supplemented or otherwise
modified from time to time, the "INDENTURE") by and among the Company and
Citibank, N.A., as trustee (the "TRUSTEE").

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

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

           1.   Definitions.

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

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

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

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

         "BUSINESS DAY" shall have the meaning set forth in Rule 13e-4(a)(3)
under the 1934 Act.

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

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

         "EXCHANGE DATES" shall have the meaning set forth in Section 2(a)(ii).

         "EXCHANGE OFFER" shall mean the exchange offer by the Company of
Exchange Securities for all Securities that are Registrable Securities pursuant
to Section 2(a) hereof.

         "EXCHANGE OFFER REGISTRATION" shall mean a registration under the 1933
Act effected pursuant to Section 2(a) hereof.

         "EXCHANGE OFFER REGISTRATION STATEMENT" shall mean a registration
statement on Form S-4 (or, if applicable, on another appropriate form) relating
to an offering of Exchange Securities pursuant to an Exchange Offer and all
amendments and supplements to such registration statement, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

         "EXCHANGE SECURITIES" shall mean any securities issued by the Company
to be offered to Holders in exchange for Securities (pursuant to the Exchange
Offer or otherwise) pursuant to an Exchange Offer Registration Statement
containing terms identical to the Securities for which they are exchanged
(except that (i) interest thereon shall accrue from the last date on which
interest was paid on the Securities or, if no such interest has been paid, from
the date of issuance of the Securities and (ii) the Exchange Securities will not
contain the legend appearing on the face of the Securities in the form recited
in the Indenture and will not contain terms with respect to transfer
restrictions.

         "HOLDER" shall mean each Initial Purchaser, for so long as it owns any
Registrable Securities, and each of its successors, assigns and direct and
indirect transferees who become registered owners of Registrable Securities
under the Indenture; provided that for purposes of Sections 4 and 5 of this
Agreement, the term "Holder" shall include Participating Broker-Dealers (as
defined in Section 4(a)).

         "INDEMNIFIED PARTY" shall have the meaning set forth in Section 5(c).

         "INDEMNIFYING PARTY" shall have the meaning set forth in Section 5(c).

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

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

         "LIQUIDATED DAMAGES" shall have the meaning set forth in Section 2(e).

         "MAJORITY HOLDERS" shall mean the Holders of a majority of the
aggregate principal amount of outstanding Registrable Securities; provided that,
for purposes of Section 6(b), whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or any of its affiliates (as such
term is defined in Rule 405 under the 1933 Act)(other than the Initial
Purchasers or subsequent Holders of Registrable Securities if such subsequent
Holders are deemed to be such affiliates solely by reason of their holding of
such Registrable Securities) shall not be considered outstanding and shall not
be counted in determining whether such consent or approval was given by the
Holders of such required percentage or amount.

         "PARTICIPANT" shall have the meaning set forth in Section 5(a).

         "PARTICIPATING BROKER-DEALER" shall have the meaning set forth in
Section 4(a) hereof.

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

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

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

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

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         "REGISTRATION DEFAULT" shall have the meaning set forth in Section
2(e).

         "REGISTRATION EXPENSES" shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement, including
without limitation: (i) all SEC, stock exchange or National Association of
Securities Dealers, Inc. registration and filing fees, (ii) all fees and
expenses incurred in connection with compliance with state securities or blue
sky laws (including reasonable fees and disbursements of counsel for any
underwriters or Holders in connection with blue sky qualification of any of the
Exchange Securities or Registrable Securities), (iii) all expenses of any Person
in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements
and other documents relating to the performance of and compliance with this
Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating
to the qualification of the Indenture under applicable securities laws, (vi) the
fees and disbursements of the Trustee and its counsel, (vii) the fees and
disbursements of counsel for the Company and, in the case of a Shelf
Registration Statement, the reasonable fees and disbursements of one counsel for
the Holders (which counsel shall be selected by the Majority Holders and which
counsel may also be counsel for the Initial Purchasers) and (viii) the fees and
disbursements of the independent public accountants of the Company, including
the expenses of any special audits or "cold comfort" letters required by or
incident to such performance and compliance, but excluding fees of counsel to
the Underwriters (other than the fees and expenses set forth in clause (ii)
above) and the Holders and underwriting discounts and commissions and transfer
taxes, if any, relating to the sale or disposition of Registrable Securities by
a Holder.

         "REGISTRATION STATEMENT" shall mean any registration statement of the
Company that covers any of the Exchange Securities or the Registrable Securities
pursuant to the provisions of this Agreement and all amendments and supplements
to any such Registration Statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

         "SEC" shall mean the Securities and Exchange Commission.

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

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

         "SHELF REGISTRATION STATEMENT" shall mean a "shelf" registration
statement of the Company pursuant to the provisions of Section 2(b) of this
Agreement which covers all of the Registrable Securities (but no other
securities

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unless approved by the Holders of a majority of the aggregate principal amount
of outstanding Registrable Securities that are covered by such Shelf
Registration Statement) on an appropriate form under Rule 415 under the 1933
Act, or any similar rule that may be adopted by the SEC, and all amendments and
supplements to such registration statement, including post-effective amendments,
in each case including the Prospectus contained therein, all exhibits thereto
and all material incorporated by reference therein.

         "TIA" shall have the meaning set forth in Section 3(1) hereof.

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

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

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

           2.   Registration under the 1933 Act.

                  (a) To the extent not prohibited by any applicable law or
         applicable interpretation of the Staff of the SEC, the Company shall
         (1) cause to be filed an Exchange Offer Registration Statement within
         75 days following the Closing Date covering the offer by the Company to
         the Holders to exchange all of the Registrable Securities for an equal
         aggregate principal amount of Exchange Securities and (2) use its
         reasonable best efforts to cause such Exchange Offer Registration
         Statement to become effective within 120 days following the Closing
         Date. The Company shall use its reasonable best efforts to have the
         Exchange Offer Registration Statement remain effective until the
         closing of the Exchange Offer. The Company shall commence the Exchange
         Offer promptly after the Exchange Offer Registration Statement has been
         declared effective by the SEC and use its reasonable best efforts to
         have the Exchange Offer consummated not later than 60 days after such
         effective date. The Company shall commence the Exchange Offer by
         mailing the related exchange offer Prospectus and accompanying
         documents to each Holder stating, in addition to such other disclosures
         as are required by applicable law:

                           (i) that the Exchange Offer is being made pursuant to
                  this Registration Rights Agreement and that all Registrable
                  Securities validly tendered will be accepted for exchange;

                          (ii) the dates of acceptance for exchange (which shall
                  be a period of at least 20 Business Days from the date such
                  notice is mailed) (the "Exchange Dates");

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                         (iii) that any Registrable Security not tendered will
                  remain outstanding and continue to accrue interest, but will
                  not retain any rights under this Agreement;

                          (iv) that Holders electing to have a Registrable
                  Security exchanged pursuant to the Exchange Offer will be
                  required to surrender such Registrable Security, together with
                  the enclosed letters of transmittal, to the institution and at
                  the address specified in the notice prior to the close of
                  business on the last Exchange Date; and

                           (v) that Holders will be entitled to withdraw their
                  election, not later than the close of business on the last
                  Exchange Date, by sending to the institution and at the
                  address (located in the Borough of Manhattan, The City of New
                  York) specified in the notice, a telegram, telex, facsimile
                  transmission or letter setting forth the name of such Holder,
                  the principal amount of Registrable Securities delivered for
                  exchange and a statement that such Holder is withdrawing his
                  election to have such Registrable Securities exchanged.

                  As soon as practicable after the last Exchange Date, the
         Company shall:

                                    (A) accept for exchange Registrable
                           Securities or portions thereof tendered and not
                           validly withdrawn pursuant to the Exchange Offer; and

                                    (B) deliver, or cause to be delivered, to
                           the Trustee for cancellation all Registrable
                           Securities or portions thereof so accepted for
                           exchange by the Company and issue, and cause the
                           Trustee to promptly authenticate and mail to each
                           Holder, an Exchange Security equal in aggregate
                           principal amount to the aggregate principal amount of
                           the Registrable Securities surrendered by such
                           Holder.

                  The Company shall use its reasonable best efforts to complete
         the Exchange Offer as provided above and shall comply with the
         applicable requirements of the 1933 Act, the 1934 Act and other
         applicable laws and regulations in connection with the Exchange Offer.
         The Exchange Offer shall not be subject to any conditions, other than
         that the Exchange Offer does not violate applicable law or any
         applicable interpretation of the Staff of the SEC. The Company shall
         inform the Initial Purchasers of the names

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         and addresses of the Holders to whom the Exchange Offer is made, and
         the Initial Purchasers shall have the right, subject to applicable law,
         to contact such Holders and otherwise facilitate the tender of
         Registrable Securities in the Exchange Offer.

                  If, during the period the Exchange Offer Registration
         Statement is effective, an event occurs which makes any statement made
         in such Exchange Offer Registration Statement or the related Prospectus
         untrue in any material respect or which requires the making of any
         changes in such Exchange Offer Registration Statement or Prospectus in
         order to make the statements therein not misleading, the Company shall
         use its reasonable best efforts to prepare and file with the SEC a
         supplement or post-effective amendment to the Exchange Offer
         Registration Statement or the related Prospectus or any document
         incorporated therein by reference or file any other required document
         so that, as thereafter delivered to the purchasers of the Registrable
         Securities, such Prospectus will not contain any untrue statement of a
         material fact or omit to state a material fact necessary to make the
         statements therein, in light of the circumstances under which they were
         made, not misleading. The Company agrees to notify the Holders to
         suspend the exchange of the Registrable Securities as promptly as
         practicable after the occurrence of such an event, and the Holders
         hereby agree to suspend such exchange until the Company has amended or
         supplemented the Prospectus to correct such misstatement or omission.

                  (b) If (i) the Company determines that the Exchange Offer
         Registration provided for in Section 2(a) above is not available or may
         not be consummated as soon as practicable after the last Exchange Date
         because it would violate applicable law or the applicable
         interpretations of the Staff of the SEC, (ii) the Exchange Offer is not
         for any other reason consummated within 180 days following the Closing
         Date or (iii) in the written opinion of counsel for the Holders a Shelf
         Registration Statement must be filed and a Prospectus must be delivered
         by any Holder in connection with any reoffering or resale of
         Registrable Securities, the Company shall (x) file with the SEC within
         75 days following such determination, date or notice of such opinion of
         counsel is given to the Company a Shelf Registration Statement
         providing for the resale by the Holders (other than those who fail to
         comply with the paragraph immediately following clause (p) of Section
         3) of all of their Registrable Securities and (y) use its reasonable
         best efforts to cause such Shelf Registration Statement to become
         effective within 60 days thereafter. If the Company is required to file
         a Shelf Registration Statement solely as a result of the matters
         referred to in clause (iii) of the preceding sentence, the Company
         shall use its reasonable best efforts to file and have declared
         effective by the SEC both an Exchange Offer Registration Statement
         pursuant to Section 2(a) with respect to all Registrable Securities and
         a

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         Shelf Registration Statement (which may be a combined Registration
         Statement with the Exchange Offer Registration Statement) with respect
         to reoffers and resales of Registrable Securities held by the Holders
         who must deliver the related Prospectus. The Company agrees to use its
         reasonable best efforts to keep the Shelf Registration Statement
         continuously effective until the expiration of the period referred to
         in Rule 144(k) with respect to the Registrable Securities or such
         shorter period that will terminate when all of the Registrable
         Securities covered by the Shelf Registration Statement have been sold
         pursuant to the Shelf Registration Statement or cease to be Registrable
         Securities within the meaning of this Agreement. The Company further
         agrees to supplement or amend the Shelf Registration Statement if
         required by the rules, regulations or instructions applicable to the
         registration form used by the Company for such Shelf Registration
         Statement or by the 1933 Act or by any other rules and regulations
         thereunder for shelf registration or if reasonably requested by a
         Holder with respect to information relating to such Holder, and to use
         its reasonable best efforts to cause any such amendment to become
         effective and such Shelf Registration Statement to become usable as
         soon as thereafter practicable. The Company agrees to furnish to the
         Holders of Registrable Securities copies of any such supplement or
         amendment promptly after its being used or filed with the SEC.

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

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

                  (e) The Company and the Initial Purchasers agree that the
         Holders will suffer damages if the Company fails to fulfill its
         obligations under Section 2(a) or Section 2(b) hereof and that it would
         not be feasible to ascertain the extent of such damages with precision.
         Accordingly, the Company agrees that if:

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                           (i) the Exchange Offer Registration Statement is not
                  filed with the SEC on or prior to the 75th day following the
                  Closing Date,

                           (ii) the Exchange Offer Registration Statement is not
                  declared effective on or prior to the 120th day following the
                  Closing Date,

                           (iii) the Exchange Offer is not completed on or prior
                  to the 180th day following the Closing Date, or

                           (iv) the Shelf Registration Statement is required to
                  be filed but is not filed or declared effective within the
                  time period set forth herein or is declared effective but
                  thereafter ceases to be effective or usable prior to the
                  expiration of the period referred to in Rule 144(k) with
                  respect to the Registrable Securities other than after the
                  Registrable Securities have been disposed of under the Shelf
                  Registration Statement or cease to be Registrable Securities,
                  without being succeeded within two Business Days by a
                  post-effective amendment which cures the failure and that is
                  itself immediately declared effective,

         (each such event referred to in clauses (i) through (iv) a
         "REGISTRATION DEFAULT"), liquidated damages ("LIQUIDATED DAMAGES") will
         accrue on the affected Registrable Securities and the affected Exchange
         Securities, as applicable. The rate of Liquidated Damages will be 0.25%
         per annum of the principal amount of Registrable Securities held by
         such Holder for the first 90-day period immediately following the
         occurrence of a Registration Default, increasing to 0.50% per annum
         thereafter, from and including the date on which any such Registration
         Default shall occur to, but excluding, the earlier of (1) the date on
         which all Registration Defaults have been cured or (2) the date on
         which all the Registrable Securities and Exchange Securities otherwise
         become freely transferable by Holders other than affiliates of the
         Securities without further registration under the 1933 Act.

                  Notwithstanding the foregoing, (1) the amount of Liquidated
         Damages payable shall not increase because more than one Registration
         Default has occurred and is pending and (2) a Holder of Registrable
         Securities or Exchange Securities who is not entitled to the benefits
         of the Shelf Registration Statement (i.e., such Holder has not elected
         to including information) shall not be entitled to Liquidated Damages
         with respect to a Registration Default that pertains to the Shelf
         Registration Statement.

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                  (f) The Company shall notify the Trustee within one Business
         Day after each date on which an event occurs in respect of which
         Liquidated Damages are required to be paid. Any amounts of Liquidated
         Damages due pursuant to this Section 2 will be payable in addition to
         any other interest payable from time to time with respect to the
         Registrable Securities in cash semi-annually on the interest payment
         dates specified in the Indenture (to the holders of record as specified
         in the Indenture), commencing with the first such interest payment date
         occurring after any such Liquidated Damages commence to accrue. The
         amount of Liquidated Damages will be determined in a manner consistent
         with the calculation of interest under the Indenture.

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

          3.   Registration Procedures.

         In connection with the obligations of the Company with respect to the
Registration Statements pursuant to Section 2(a) and Section 2(b) hereof, the
Company shall as expeditiously as possible (provided, however, that the Company
shall not be required to take actions more promptly than required by Sections
2(a) and 2(b)):

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

                  (b) prepare and file with the SEC such amendments and
         post-effective amendments to each Registration Statement as may be
         necessary to keep such Registration Statement effective for the
         applicable period and cause each Prospectus to be supplemented by any
         required prospectus supplement and, as so supplemented, to be filed
         pursuant to Rule 424

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         under the 1933 Act; and keep each Prospectus current during the period
         described under Section 4(3) and Rule 174 under the 1933 Act that is
         applicable to transactions by brokers or dealers with respect to the
         Registrable Securities or Exchange Securities;

                  (c) in the case of a Shelf Registration, furnish to each
         Holder of Registrable Securities, to counsel for the Initial Purchasers
         and to counsel for the Holders and to each Underwriter of an
         Underwritten Offering of Registrable Securities, if any, without
         charge, as many copies of each Prospectus, including each preliminary
         Prospectus and any amendment or supplement thereto and such other
         documents as such Holder or Underwriter may reasonably request, in
         order to facilitate the public sale or other disposition of the
         Registrable Securities; and, subject to Section 3(i), the Company
         consents to the use of such Prospectus and any amendment or supplement
         thereto in accordance with applicable law by each of the selling
         Holders of Registrable Securities and any such Underwriters in
         connection with the offering and sale of the Registrable Securities
         covered by and in the manner described in such Prospectus or any
         amendment or supplement thereto in accordance with applicable law;

                  (d) use its reasonable best efforts to register or qualify the
         Registrable Securities under all applicable state securities or blue
         sky laws of such jurisdictions as any Holder of Registrable Securities
         covered by a Registration Statement shall reasonably request in writing
         by the time the applicable Registration Statement is declared effective
         by the SEC, and to cooperate with such Holders in connection with any
         filings required to be made with the National Association of Securities
         Dealers, Inc. and do any and all other acts and things which may be
         reasonably necessary or advisable to enable such Holder to consummate
         the disposition in each such jurisdiction of such Registrable
         Securities owned by such Holder; provided, however, that the Company
         shall not be required to (i) qualify as a foreign corporation or as a
         dealer in securities in any jurisdiction where it would not otherwise
         be required to qualify but for this Section 3(d), (ii) file any general
         consent to service of process or (iii) subject itself to taxation in
         any such jurisdiction if it is not so subject;

                  (e) in the case of a Shelf Registration, notify each Holder of
         Registrable Securities, counsel for the Holders and counsel for the
         Initial Purchasers (or, if applicable, separate counsel for the
         Holders) promptly and, if requested by any such Holder or counsel,
         confirm such advice in writing, (i) when a Registration Statement has
         become effective and when any post-effective amendment thereto has been
         filed and becomes effective, (ii) of any request by the SEC or any
         state securities authority for amendments and supplements to a
         Registration Statement and Prospectus or for additional information
         after the Registration Statement has become

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         effective, (iii) of the issuance by the SEC or any state securities
         authority of any stop order suspending the effectiveness of a
         Registration Statement or the initiation of any proceedings for that
         purpose, (iv) if, between the effective date of a Registration
         Statement and the closing of any sale of Registrable Securities covered
         thereby, the representations and warranties of the Company contained in
         any underwriting agreement, securities sales agreement or other similar
         agreement, if any, relating to the offering cease to be true and
         correct in all material respects or if the Company receives any
         notification with respect to the suspension of the qualification of the
         Registrable Securities for sale in any jurisdiction or the initiation
         of any proceeding for such purpose, (v) of the happening of any event
         during the period a Shelf Registration Statement is effective which
         makes any statement made in such Shelf Registration Statement or the
         related Prospectus untrue in any material respect or which requires the
         making of any changes in such Registration Statement or Prospectus in
         order to make the statements therein not misleading and (vi) of any
         determination by the Company that a post-effective amendment to a
         Registration Statement would be appropriate;

                  (f) use its reasonable best efforts to obtain the withdrawal
         of any order suspending the effectiveness of a Registration Statement
         at the earliest possible moment and provide immediate notice to each
         Holder of the withdrawal of any such order;

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

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

                  (i) in the case of a Shelf Registration, upon the occurrence
         of any event contemplated by Section 3(e)(v) hereof, use its reasonable
         best efforts to prepare and file with the SEC a supplement or
         post-effective amendment to a Registration Statement or the related
         Prospectus or any document incorporated therein by reference or file
         any other required document so that, as thereafter delivered to the
         purchasers of the

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         Registrable Securities, such Prospectus will not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements therein, in the light of the circumstances under
         which they were made, not misleading. The Company agrees to notify the
         Holders to suspend use of the Prospectus as promptly as practicable
         after the occurrence of such an event, and the Holders hereby agree to
         suspend use of the Prospectus until the Company has amended or
         supplemented the Prospectus to correct such misstatement or omission
         and has furnished copies of the amended or supplemented Prospectus to
         the Holders or until the Company notifies the Holders that the sale of
         the Registrable Securities may be resumed;

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

                  (k) obtain a CUSIP number for all Exchange Securities or
         Registrable Securities, as the case may be, not later than the
         effective date of the applicable Registration Statement;

                  (l) cause the Indenture to be qualified under the Trust
         Indenture Act of 1939, as amended (the "TIA"), in connection with the
         registration of the Exchange Securities or Registrable Securities, as
         the case may be, and cooperate with the Trustee and the Holders to
         effect such changes to the Indenture as may be required for the
         Indenture to be so qualified in accordance with the terms of the TIA
         and execute, and use commercially reasonable best efforts to cause the
         Trustee to execute, all documents as may be required to effect such
         changes and all other forms and documents

                                       14
<PAGE>

         required to be filed with the SEC to enable the Indenture to be so
         qualified in a timely manner;

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

                  (n) use its reasonable best efforts to cause the Exchange
         Securities to continue to be rated by two nationally recognized
         statistical rating organizations (as such term is defined in Rule
         436(g)(2) under the 1933 Act), if the Registrable Securities have been
         rated;

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

                  (p) in the case of a Shelf Registration, enter into such
         customary agreements and take all such other actions in connection
         therewith (including those reasonably requested by the Holders of a
         majority of the Registrable Securities being sold thereunder) in order
         to expedite or facilitate the disposition of such Registrable
         Securities thereunder including, but not limited to, pursuant to an
         Underwritten Offering and in such connection, (i) to the extent
         possible, make such representations and warranties to the Holders and
         any Underwriters of such Registrable Securities with respect to the
         business of the Company and its subsidiaries, the Registration
         Statement, Prospectus and documents incorporated by reference or deemed
         incorporated by reference, if any, in each case, in form, substance and
         scope as are customarily made by issuers to underwriters in
         underwritten offerings and confirm the same if and when requested, (ii)
         obtain opinions of counsel to the Company (which counsel and opinions,
         in form, scope and substance, shall be reasonably satisfactory to the
         Holders of a majority in principal amount of the Registrable

                                       15
<PAGE>

         Securities being sold under such Shelf Registration Statement, such
         Underwriters and their respective counsel) addressed to each selling
         Holder and Underwriter of Registrable Securities, covering the matters
         customarily covered in opinions requested in underwritten offerings,
         (iii) obtain "cold comfort" letters from the independent certified
         public accountants of the Company (and, if necessary, any other
         certified public accountant of any subsidiary of the Company, or of any
         business acquired by the Company for which financial statements and
         financial data are or are required to be included in the Registration
         Statement) addressed to each selling Holder and Underwriter of
         Registrable Securities, such letters to be in customary form and
         covering matters of the type customarily covered in "cold comfort"
         letters in connection with underwritten offerings, and (iv) deliver
         such documents and certificates as may be reasonably requested by the
         Holders of a majority in principal amount of the Registrable Securities
         being sold under such Shelf Registration Statement or by the
         Underwriters, and which are customarily delivered in underwritten
         offerings, to evidence the continued validity of the representations
         and warranties of the Company made pursuant to clause (i) above and to
         evidence compliance with any customary conditions contained in an
         underwriting agreement.

                  In the case of a Shelf Registration Statement, the Company may
         require each Holder of Registrable Securities to furnish to the Company
         such information regarding the Holder and the proposed distribution by
         such Holder of such Registrable Securities as the Company may from time
         to time reasonably request in writing. No Holder of Registrable
         Securities may include its Registrable Securities in such Shelf
         Registration Statement unless and until such Holder furnishes such
         information to the Company. Each Holder including Registrable
         Securities in a Shelf Registration Statement shall agree to furnish
         promptly to the Company all information regarding such Holder and the
         proposed distribution by such Holder of such Registrable Securities
         required to make the information previously furnished to the Company by
         such Holder not materially misleading.

                  In connection with an Exchange Offer Registration, each Holder
         exchanging Securities for Exchange Securities shall be required to
         represent that (i) the Exchange Securities are being obtained in the
         ordinary course of business of the Person receiving such Exchange
         Securities, whether or not such Person is a Holder, (ii) neither such
         Holder nor any such other Person has an arrangement or understanding
         with any Person to participate in the distribution of Exchange
         Securities, (iii) other than as set forth in Section 4, if the Holder
         is not a broker-dealer, or is a broker-dealer but will not receive
         Exchange Securities for its own account in exchange for Securities,
         neither the Holder nor any such other Person is engaged in or intends
         to participate in a distribution of the Exchange Securities and (iv)
         neither the Holder nor any such other Person is an "affiliate" of the

                                       16
<PAGE>

         Company within the meaning of Rule 405 under the Securities Act or, if
         such Person is an "affiliate", that such Holder will comply with the
         registration and prospectus delivery requirements of the Securities Act
         to the extent applicable.

                  In the case of a Shelf Registration Statement, each Holder
         agrees that, upon receipt of any notice from the Company of the
         happening of any event of the kind described in Section 3(e)(v) hereof,
         such Holder will forthwith discontinue disposition of Registrable
         Securities pursuant to a Registration Statement until such Holder's
         receipt of the copies of the supplemented or amended Prospectus
         contemplated by Section 3(i) hereof, and, if so directed by the
         Company, such Holder will destroy or deliver to the Company (at its
         expense) all copies in its possession, other than permanent file copies
         then in such Holder's possession, of the Prospectus covering such
         Registrable Securities current at the time of receipt of such notice.

                  If the Company shall give any such notice to suspend the
         disposition of Registrable Securities pursuant to a Registration
         Statement, the Company shall extend the period during which the
         Registration Statement shall be maintained effective pursuant to this
         Agreement by the number of days during the period from and including
         the date of the giving of such notice to and including the date when
         the Holders shall have received copies of the supplemented or amended
         Prospectus necessary to resume such dispositions. The Company may give
         such notice so long as there are no more than 90 days during any 365
         day period in which such suspensions are in effect.

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

          4.   Participation of Broker-Dealers in Exchange Offer.

                  (a) The parties hereto understand that the Staff of the SEC
         has taken the position that any broker-dealer that receives Exchange
         Securities for its own account in the Exchange Offer in exchange for
         Securities that were acquired by such broker-dealer as a result of
         market-making or other trading activities (a "Participating
         Broker-Dealer"), may be deemed to be an "underwriter" within the
         meaning of the 1933 Act and must deliver a

                                       17
<PAGE>

         prospectus meeting the requirements of the 1933 Act in connection with
         any resale of such Exchange Securities.

                  The Company understands that it is currently the Staff's
         position that if the Prospectus contained in the Exchange Offer
         Registration Statement includes a plan of distribution containing a
         statement to the above effect and the means by which Participating
         Broker-Dealers may resell the Exchange Securities, without naming the
         Participating Broker-Dealers or specifying the amount of Exchange
         Securities owned by them, such Prospectus may be delivered by
         Participating Broker-Dealers to satisfy their prospectus delivery
         obligation under the 1933 Act in connection with resales of Exchange
         Securities for their own accounts, so long as the Prospectus otherwise
         meets the requirements of the 1933 Act.

                  (b) In light of the above, notwithstanding the other
         provisions of this Agreement, the Company agrees that the provisions of
         this Agreement as they relate to a Shelf Registration shall also apply
         to an Exchange Offer Registration to the extent, and with such
         reasonable modifications thereto as may be, reasonably requested by the
         Initial Purchasers or by one or more Participating Broker-Dealers, in
         each case as provided in clause (ii) below, in order to expedite or
         facilitate the disposition of any Exchange Securities by Participating
         Broker-Dealers consistent with the positions of the Staff recited in
         Section 4(a) above; provided that:

                           (i) the Company shall not be required to amend or
                  supplement the Prospectus contained in the Exchange Offer
                  Registration Statement, as would otherwise be contemplated by
                  Section 3(i), for a period exceeding 180 days after the last
                  Exchange Date (as such period may be extended pursuant to the
                  penultimate paragraph of Section 3 of this Agreement) and
                  Participating Broker-Dealers shall not be authorized by the
                  Company to deliver and shall not deliver such Prospectus after
                  such period in connection with the resales contemplated by
                  this Section 4; and

                          (ii) the application of the Shelf Registration
                  procedures set forth in Section 3 of this Agreement to an
                  Exchange Offer Registration, to the extent not required by the
                  positions of the Staff of the SEC or the 1933 Act and the
                  rules and regulations thereunder, will be in conformity with
                  the reasonable request in writing to the Company by the
                  Initial Purchasers or with the reasonable request in writing
                  to the Company by one or more broker-dealers who certify to
                  the Initial Purchasers and the Company in writing that they
                  anticipate that they will be Participating Broker-Dealers; and
                  provided further that, in

                                       18
<PAGE>

                  connection with such application of the Shelf Registration
                  procedures set forth in Section 3 to an Exchange Offer
                  Registration, the Company shall be obligated (x) to deal only
                  with one entity representing the Participating Broker-Dealers,
                  which shall be UBS Warburg LLC unless it elects not to act as
                  such representative, (y) to pay the fees and expenses of only
                  one counsel representing the Participating Broker-Dealers,
                  which shall be counsel to the Initial Purchasers unless such
                  counsel elects not to so act and (z) to cause to be delivered
                  only one, if any, "cold comfort" letter with respect to the
                  Prospectus in the form existing on the last Exchange Date and
                  with respect to each subsequent amendment or supplement, if
                  any, effected during the period specified in clause (i) above.

                  (c) The Initial Purchasers shall have no liability to the
         Company, other than as Holders in accordance with the terms hereof, or
         to any other Holder with respect to any request that they may make
         pursuant to Section 4(b) above.

          5.   Indemnification and Contribution.

                 (a) The Company agrees to indemnify and hold harmless the
         Initial Purchasers, each Holder and each Person, if any, who controls
         the Initial Purchasers or any Holder within the meaning of either
         Section 15 of the 1933 Act or Section 20 of the 1934 Act, or is under
         common control with, or is controlled by, the Initial Purchasers or any
         Holder (each, a "Participant"), from and against all losses, claims,
         damages and liabilities (including, without limitation, any legal fees
         or other expenses reasonably incurred by a Participant in connection
         with defending or investigating any such action or claim) caused by any
         untrue statement or alleged untrue statement of a material fact
         contained in any Registration Statement (or any amendment thereto)
         pursuant to which Exchange Securities or Registrable Securities were
         registered under the 1933 Act, including all documents incorporated
         therein by reference, or caused by any omission or alleged omission to
         state therein a material fact required to be stated therein or
         necessary to make the statements therein not misleading, or caused by
         any untrue statement or alleged untrue statement of a material fact
         contained in any Prospectus (as amended or supplemented if the Company
         shall have furnished any amendments or supplements thereto) forming a
         part of such Registration Statement, or caused by any omission or
         alleged omission to state therein a material fact necessary to make the
         statements therein in light of the circumstances under which they were
         made not misleading, except insofar as such losses, claims, damages or
         liabilities are caused by any such untrue statement or omission or
         alleged untrue statement or omission based upon and in conformity with
         information relating to the

                                       19
<PAGE>

         Initial Purchasers or any Holder furnished to the Company in writing by
         the Initial Purchasers or any selling Holder expressly for use therein;
         provided that the foregoing indemnity with respect to any Prospectus
         shall not inure to the benefit of any Holder from whom the Person
         asserting any such losses, claims, damages or liabilities purchased
         Securities, or any Person controlling such Holder, if a copy of the
         final Prospectus (as then amended or supplemented if the Company shall
         have furnished any amendments or supplements thereto) was not sent by,
         or delivered on behalf of, such Holder to such Person at or prior to
         the written confirmation of the sale of the Securities to such Person,
         if the final Prospectus (as so amended or supplemented) would have
         cured the defect giving rise to such loss, claim, damage or liability.
         In connection with any Underwritten Offering permitted by Section 3,
         the Company will also enter into an underwriting agreement pursuant to
         which the Company will agree to indemnify the Underwriters, if any,
         selling brokers, dealers and similar securities industry professionals
         participating in such Underwritten Offering, their officers and
         directors and each Person who controls such Persons (within the meaning
         of either Section 15 of the 1933 Act or Section 20 of the 1934 Act) to
         the same extent as provided above with respect to the indemnification
         of the Holders, if requested in connection with any Registration
         Statement for such Underwritten Offering.

                  (b) Each Holder agrees, severally and not jointly, to
         indemnify and hold harmless the Company, the Initial Purchasers and the
         other selling Holders, and each of their respective directors and
         officers who sign the Registration Statement and each Person, if any,
         who controls the Company, the Initial Purchasers and any other selling
         Holder within the meaning of either Section 15 of the 1933 Act or
         Section 20 of the 1934 Act to the same extent as the foregoing
         indemnity from the Company to the Initial Purchasers and the Holders
         pursuant to Section 5(a), but only with reference to information
         relating to such Holder furnished to the Company in writing by such
         Holder expressly for use in any Registration Statement (or any
         amendment thereto) or any Prospectus (or any amendment or supplement
         thereto).

                  (c) In case any proceeding (including any governmental
         investigation) shall be instituted involving any Person in respect of
         which indemnity may be sought pursuant to either paragraph (a) or
         paragraph (b) above, such Person (the "INDEMNIFIED PARTY") shall
         promptly notify the Person against whom such indemnity may be sought
         (the "INDEMNIFYING PARTY") in writing, but the failure to so promptly
         notify the Indemnifying Party shall not negate the obligation to so
         indemnify such Indemnified Party unless the Indemnifying Party is
         materially prejudiced by such delay, and the Indemnifying Party, upon
         request of the Indemnified Party, shall retain counsel reasonably
         satisfactory to the Indemnified Party to represent

                                       20
<PAGE>

         the Indemnified Party and any others the Indemnifying Party may
         designate in such proceeding and shall pay the fees and expenses of
         such counsel related to such proceeding. In any such proceeding, any
         Indemnified Party shall have the right to retain its own counsel, but
         the fees and expenses of such counsel shall be at the expense of such
         Indemnified Party unless (i) the Indemnifying Party and the Indemnified
         Party shall have mutually agreed to the retention of such counsel or
         (ii) the named parties to any such proceeding (including any impleaded
         parties) include both the Indemnifying Party and the Indemnified Party
         and, in the opinion of counsel to the Indemnifying Party,
         representation of both parties by the same counsel would be
         inappropriate due to actual or potential differing interests between
         them. It is understood that the Indemnifying Party shall not, in
         connection with any proceeding or related proceedings in the same
         jurisdiction, be liable for (a) the fees and expenses of more than one
         separate firm (in addition to any local counsel) for the Initial
         Purchasers and all Persons, if any, who control the Initial Purchasers
         within the meaning of either Section 15 of the 1933 Act or Section 20
         of the 1934 Act, (b) the fees and expenses of more than one separate
         firm (in addition to any local counsel) for the Company, its directors,
         its officers who sign the Registration Statement and each Person, if
         any, who controls the Company within the meaning of either such Section
         and (c) the fees and expenses of more than one separate firm (in
         addition to any local counsel) for all Holders and all Persons, if any,
         who control any Holders within the meaning of either such Section, and
         that all such fees and expenses shall be reimbursed as they are
         incurred. In such case involving the Initial Purchasers and Persons who
         control the Initial Purchasers, such firm shall be designated in
         writing by the Initial Purchasers. In such case involving the Holders
         and such Persons who control Holders, such firm shall be designated in
         writing by the Majority Holders. In all other cases, such firm shall be
         designated by the Company. The Indemnifying Party shall not be liable
         for any settlement of any proceeding effected without its written
         consent but, if settled with such consent or if there be a final
         judgment for the plaintiff, the Indemnifying Party agrees to indemnify
         the Indemnified Party from and against any loss or liability by reason
         of such settlement or judgment. No Indemnifying Party shall, without
         the prior written consent of the Indemnified Party, effect any
         settlement of any pending or threatened proceeding in respect of which
         such Indemnified Party is or could have been a party and indemnity
         could have been sought hereunder by such Indemnified Party, unless such
         settlement includes an unconditional release of such Indemnified Party
         from all liability on claims that are the subject matter of such
         proceeding.

                  (d) If the indemnification provided for in paragraph (a) or
         paragraph (b) of this Section 5 is unavailable to an Indemnified Party
         or insufficient in respect of any losses, claims, damages or
         liabilities, then each

                                       21
<PAGE>

         Indemnifying Party under such paragraph, in lieu of indemnifying such
         Indemnified Party thereunder, shall contribute to the amount paid or
         payable by such Indemnified Party as a result of such losses, claims,
         damages or liabilities in such proportion as is appropriate to reflect
         the relative fault of the Indemnifying Party or parties on the one hand
         and of the Indemnified Party or parties on the other hand in connection
         with the statements or omissions that resulted in such losses, claims,
         damages or liabilities, as well as any other relevant equitable
         considerations. The relative fault of the Company and the Holders shall
         be determined by reference to, among other things, whether the untrue
         or alleged untrue statement of a material fact or the omission or
         alleged omission to state a material fact relates to information
         supplied by the Company or by the Holders and the parties' relative
         intent, knowledge, access to information and opportunity to correct or
         prevent such statement or omission. The Holders' respective obligations
         to contribute pursuant to this Section 5(d) are several in proportion
         to the respective principal amount of Registrable Securities of the
         applicable Holder that were registered pursuant to a Registration
         Statement.

                  (e) The Company and each Holder agree that it would not be
         just or equitable if contribution pursuant to this Section 5(d) were
         determined by pro rata allocation or by any other method of allocation
         that does not take account of the equitable considerations referred to
         in Section 5(d) above. The amount paid or payable by an Indemnified
         Party as a result of the losses, claims, damages and liabilities
         referred to in Section 5(d) above shall be deemed to include, subject
         to the limitations set forth above, any legal or other expenses
         reasonably incurred by such Indemnified Party in connection with
         investigating or defending any such action or claim. Notwithstanding
         the provisions of this Section 5, no Holder shall be required to
         indemnify or contribute any amount in excess of the amount by which the
         total price at which Registrable Securities were sold by such Holder
         exceeds the amount of any damages that such Holder has otherwise been
         required to pay by reason of such untrue or alleged untrue statement or
         omission or alleged omission. No Person guilty of fraudulent
         misrepresentation (within the meaning of Section 11(f) of the 1933 Act)
         shall be entitled to contribution from any Person who was not guilty of
         such fraudulent misrepresentation. The remedies provided for in this
         Section 5 are not exclusive and shall not limit any rights or remedies
         which may otherwise be available to any Indemnified Party at law or in
         equity.

                  The indemnity and contribution provisions contained in this
         Section 5 shall remain operative and in full force and effect
         regardless of (i) any termination of this Agreement, (ii) any
         investigation made by or on behalf of the Initial Purchasers, any
         Holder or any Person controlling the Initial Purchasers or any Holder,
         or by or on behalf of the Company, its officers

                                       22
<PAGE>

         or directors or any Person controlling the Company, (iii) acceptance of
         any of the Exchange Securities and (iv) any sale of Registrable
         Securities pursuant to a Shelf Registration Statement.

           6.   Miscellaneous.

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

                  (b) Amendments and Waivers. The provisions of this Agreement,
         including the provisions of this sentence, may not be amended, modified
         or supplemented, and waivers or consents to departures from the
         provisions hereof may not be given unless the Company has obtained the
         written consent of Holders of at least a majority in aggregate
         principal amount of the outstanding Registrable Securities affected by
         such amendment, modification, supplement, waiver or consent; provided,
         however, that no amendment, modification, supplement, waiver or consent
         to any departure from the provisions of Section 5 hereof or this
         paragraph (b) shall be effective as against any Holder of Registrable
         Securities unless consented to in writing by such Holder.

                  (c) Notices. All notices and other communications provided for
         or permitted hereunder shall be made in writing by hand-delivery,
         registered first-class mail, telex, telecopier, or any courier
         guaranteeing overnight delivery (i) if to a Holder, at the most current
         address given by such Holder to the Company by means of a notice given
         in accordance with the provisions of this Section 6(c), which address
         initially is, with respect to the Initial Purchasers, the address set
         forth in the Purchase Agreement; and (ii) if to the Company, initially
         at the Company's address set forth in the Purchase Agreement and
         thereafter at such other address, notice of which is given in
         accordance with the provisions of this Section 6(c).

                  All such 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 pre-paid,
         if mailed; when answered back, if telexed; when receipt is
         acknowledged, if telecopied; and on the next Business Day if timely
         delivered to an air courier guaranteeing overnight delivery.

                                       23
<PAGE>

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

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

                  (e) Purchases and Sales of Securities. The Company shall not,
         and shall use its reasonable best efforts to cause its affiliates (as
         defined in Rule 405 under the 1933 Act) not to, purchase and then
         resell or otherwise transfer any Securities.

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

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

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

                                       24
<PAGE>

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

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

                                       25
<PAGE>

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

                                             TRANSCONTINENTAL GAS PIPE
                                             LINE CORPORATION

                                             By /s/ NICK A. BACILE
                                               ------------------------
                                               Name:   Nick A. Bacile
                                               Title:

Confirmed and accepted as of
the date first above written:

UBS Warburg LLC
    on behalf of itself and the
    several Managers listed
    on Schedule I hereto

By: /s/ JOHN DOHERTY
   ----------------------------
   Name:  John Doherty
   Title: Director -
          Debt Capital Markets

By: /s/ SCOTT D. WHITNEY
   ----------------------------
   Name:  Scott D. Whitney
   Title: Associate Director

                                       26
<PAGE>

                                   SCHEDULE I

Initial Purchasers

UBS Warburg
J.P. Morgan Securities Inc.
ABN AMRO Incorporated
BMO Nesbitt Burns
BNY Capital Markets, Inc.
Mizuho International plc
The Royal Bank of Scotland
SG Cowen Securities Corporation
Tokyo-Mitsubishi International plc

                                       27<PAGE>
                                                                    EXHIBIT 10.1

                              TRANSCONTINENTAL GAS
                              PIPE LINE CORPORATION

                    $300,000,000 7% Notes due August 15, 2011

                               PURCHASE AGREEMENT

                                            August 22, 2001

To the Initial Purchasers
  Listed on Schedule I hereto

c/o UBS Warburg LLC
677 Washington Boulevard
Stamford, CT 06901

Ladies and Gentlemen:

         Transcontinental Gas Pipe Line Corporation, a Delaware corporation,
(the "COMPANY"), proposes to issue and sell to the several initial purchasers
listed on Schedule I hereto (the "INITIAL PURCHASERS", individually the "INITIAL
PURCHASER"), $300,000,000 aggregate principal amount of its 7% Notes due 2011
(the "SECURITIES"), to be issued pursuant to the provisions of an Indenture to
be dated as of August 27, 2001 (the "INDENTURE"), between the Company and
Citibank, N.A. (the "TRUSTEE"). The Securities will be entitled to the benefits
of a registration rights agreement to be dated August 27, 2001 between the
Company and the Initial Purchasers (the "REGISTRATION RIGHTS AGREEMENT").

         The Company hereby confirms its agreement with the Initial Purchasers
to issue and sell all of the Securities to the Initial Purchasers, on the terms
and conditions set forth herein.

         The Securities will be offered and sold to the Initial Purchasers,
without registration under the Securities Act of 1933, as amended (the
"SECURITIES ACT"), in reliance upon an exemption from the registration
requirements of the Securities Act.

         In connection with the sale of the Securities, the Company has prepared
and delivered to the Initial Purchasers a preliminary confidential offering
memorandum, dated August 21, 2001 (together with all documents incorporated by
reference therein, the "PRELIMINARY OFFERING MEMORANDUM") and has

<PAGE>

prepared and will deliver to the Initial Purchasers on the date hereof or as
soon as practicable thereafter, copies of a final confidential memorandum, dated
August 22, 2001 (together with all amendments and supplements thereto, and
together with all documents incorporated by reference therein, the "FINAL
OFFERING MEMORANDUM"), relating to the Securities. The Preliminary Offering
Memorandum and the Final Offering Memorandum are sometimes collectively referred
to herein as the "Offering Memorandum." All references in this Agreement to the
Offering Memorandum include the documents incorporated by reference therein. The
Company hereby confirms that it has authorized the use of the Offering
Memorandum in connection with the offer and sale of the Securities.

         The Company understands that the Initial Purchasers propose to make
offerings ("EXEMPT RESALES") of the Securities only on the terms and in the
manner set forth in the Offering Memorandum and Section 3 hereof, as soon as the
Initial Purchasers deem advisable after this Agreement has been executed and
delivered only (i) to persons in the United States whom the Initial Purchasers
reasonably believe to be "qualified institutional buyers" ("QIBS") as defined in
Rule 144A under the Securities Act, as such rule may be amended from time to
time ("RULE 144A"), or, if any such person is buying for one or more
institutional accounts for which such person is acting as fiduciary or agent,
only when such person has represented to the Initial Purchasers that each such
account is a QIB to whom notice has been given that such sale or delivery is
being made in reliance on Rule 144A or (ii) in offshore transactions to non-U.S.
persons in reliance on Regulation S under the Securities Act ("REGULATION S").

         1. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
represents and warrants to, and agrees with, the Initial Purchasers that as of
the date hereof and at the Closing Date (as defined herein):

                  (a) The Company has been duly incorporated, is validly
         existing as a corporation in good standing under the laws of the State
         of Delaware, has the corporate power and authority to own its property
         and to conduct its business as described in the Offering Memorandum and
         is duly qualified to do business and is in good standing in each
         jurisdiction in which the conduct of its business or its ownership or
         leasing of property requires such qualification, except to the extent
         that the failure to be so qualified or be in good standing would not
         have a material adverse effect on the financial condition, results of
         operations or business of the Company and its subsidiaries, taken as a
         whole (a "MATERIAL ADVERSE EFFECT");

                  (b) Each of the subsidiaries of the Company (the
         "SUBSIDIARIES" or "SUBSIDIARY") has been duly organized or validly
         formed, is validly existing and in good standing under the laws of the
         jurisdiction of its

                                       2
<PAGE>

         formation or incorporation, has the power (corporate or other) and
         authority to own its property and to conduct its business as described
         in the Offering Memorandum and is duly qualified to do business and is
         in good standing in each jurisdiction in which the conduct of its
         business or its ownership or leasing of property requires such
         qualification, except to the extent that the failure to be so qualified
         or be in good standing would not have a Material Adverse Effect;

                  (c) Each of the Company and its Subsidiaries has all consents,
         authorizations, approvals, orders, certificates and permits of and
         from, and has made all declarations and filings with, all federal,
         state, local and other governmental authorities, and all courts or
         other tribunals (collectively the "LICENSES") necessary to own, hold,
         or lease, as the case may be, and to operate its properties and to
         carry on its business as presently conducted, except where the failure
         to possess such Licenses could not reasonably be expected to have a
         Material Adverse Effect, and neither the Company nor any of its
         Subsidiaries has received any notice of proceedings relating to
         revocation or modification of any such Licenses;

                  (d) The Company has an authorized capitalization as set forth
         in the Final Offering Memorandum and all of the issued shares of
         capital stock of the Company have been duly authorized and validly
         issued, are fully paid and non-assessable and conform to the
         description thereof in the Final Offering Memorandum; and all of the
         issued shares of capital stock of each Subsidiary (in the case of each
         Subsidiary which is a corporation) have been duly authorized and
         validly issued and are fully paid and non-assessable and are owned
         directly or indirectly by the Company, free and clear of all liens,
         encumbrances, equities or claims.

                  (e) Each of the Company and its Subsidiaries (i) is in
         compliance with any and all applicable foreign, federal, state and
         local laws and regulations relating to the protection of human health
         and safety, the environment or hazardous or toxic substances or wastes,
         pollutants or contaminants ("ENVIRONMENTAL LAWS"), (ii) has received
         all permits, licenses or other approvals required of it under
         applicable Environmental Laws to conduct its business and (iii) is in
         compliance with all terms and conditions of any such permit, license or
         approval, except, with respect to (i), (ii) and (iii), as may be
         disclosed in the Offering Memorandum and except where such
         noncompliance with Environmental Laws, failure to receive required
         permits, licenses or other approvals or failure to comply with the
         terms and conditions of such permits, licenses or approvals would not,
         singly or in the aggregate, have a Material Adverse Effect;

                  (f) There has been no storage, disposal, generation,
         manufacture, refinement, transportation, handling or treatment of toxic
         wastes, medical

                                       3
<PAGE>

         wastes, hazardous wastes or hazardous substances by the Company or any
         of its Subsidiaries (or, to the knowledge of the Company, any of their
         predecessors in interest) at, upon or from any of the property now or
         previously owned or leased by the Company or its Subsidiaries in
         violation of any applicable law, ordinance, rule, regulation, order,
         judgment, decree or permit or which would require remedial action under
         any applicable law, ordinance, rule, regulation, order, judgment,
         decree or permit, except as may be disclosed in the Offering Memorandum
         and except for any violation or remedial action which would not have,
         or could not be reasonably likely to have, singularly or in the
         aggregate, a Material Adverse Effect; there has been no material spill,
         discharge, leak, emission, injection, escape, dumping or release of any
         kind onto such property or into the environment surrounding such
         property of any toxic wastes, medical wastes, solid wastes, hazardous
         wastes or hazardous substances due to or caused by the Company or any
         of its Subsidiaries or with respect to which the Company or any of its
         Subsidiaries have knowledge, except for any such spill, discharge,
         leak, emission, injection, escape, dumping or release which would not
         have or would not be reasonably likely to have, singularly or in the
         aggregate, a Material Adverse Effect; and the terms "hazardous wastes",
         "toxic wastes", "hazardous substances" and "medical wastes" shall have
         the meanings specified in any applicable local, state, federal and
         foreign laws or regulations with respect to environmental protection.

                  (g) The Company has filed all material tax returns which are
         required to be filed by it and has paid all taxes due pursuant to such
         returns or pursuant to any assessment received by the Company, except
         where the same may be contested in good faith by appropriate
         proceedings, and where the Company has maintained in accordance with
         generally accepted accounting principles appropriate reserves for the
         accrual of any of the same. The charges, accruals and reserves on the
         books of the Company in respect of taxes or other governmental charges
         are, in the opinion of the Company, adequate;

                  (h) The Company is not an "investment company" or an entity
         "controlled" by an "investment company" as such terms are defined in
         the Investment Company Act of 1940, as amended;

                  (i) Assuming due authorization, execution and authentication
         by the Trustee, the Indenture, when duly executed and delivered by the
         Company, will constitute a valid and binding obligation of the Company,
         enforceable against the Company in accordance with its terms, except as
         (i) the enforceability thereof may be limited by bankruptcy, insolvency
         (including, without limitation, all laws relating to fraudulent
         transfers), reorganization, moratorium or similar laws affecting
         creditors' rights

                                       4
<PAGE>

         generally and (ii) rights of acceleration, if any, enforceability and
         the availability of equitable remedies may be limited by equitable
         principles of general applicability (regardless of whether considered
         in a proceeding in equity or at law). The Indenture conforms in all
         material respects to the description thereof in the Offering
         Memorandum;

                  (j) The Securities have been duly authorized by the Company
         and, when executed and authenticated in accordance with the provisions
         of the Indenture and delivered to and paid for by the Initial
         Purchasers in accordance with the terms of this Agreement, will be
         entitled to the benefits of the Indenture and will be valid and binding
         obligations of the Company, enforceable in accordance with their terms,
         except as (i) the enforceability thereof may be limited by bankruptcy,
         insolvency (including, without limitation, all laws relating to
         fraudulent transfers), reorganization, moratorium or similar laws
         affecting creditors' rights generally and (ii) rights of acceleration,
         if any, enforceability and the availability of equitable remedies may
         be limited by equitable principles of general applicability (regardless
         of whether considered in a proceeding in equity or at law);

                  (k) The Securities constitute unsecured and unsubordinated
         obligations of the Company and rank pari passu without any preference
         among themselves; the Securities rank pari passu with all other
         unsecured and unsubordinated debt obligations of the Company other than
         any unsubordinated debt obligations which rank junior to the
         Securities;

                  (l) Each of this Agreement and the Registration Rights
         Agreement has been duly authorized by the Company and, when duly
         executed and delivered by the Company, and assuming due authorization,
         execution and delivery by the representatives on behalf of the Initial
         Purchasers, will be a valid and binding obligation of the Company,
         enforceable against the Company in accordance with its terms, except as
         enforcement thereof may be limited by bankruptcy, insolvency,
         reorganization, moratorium or similar laws affecting enforcement of
         creditors' rights generally or is subject to general principles of
         equity (regardless of whether considered in a proceeding in equity or
         at law) and except as rights to indemnification and contribution
         thereunder may be limited by applicable law;

                  (m) The execution and delivery by the Company of this
         Agreement and the Registration Rights Agreement, the issuance and
         delivery of the Securities, the consummation by the Company of the
         transactions contemplated herein and the compliance by the Company with
         the terms of this Agreement, the Indenture, the Securities and the
         Registration Rights Agreement have been duly authorized by all
         necessary

                                       5
<PAGE>

         corporate action on the part of the Company and do not and will not
         result in any violation of the charter or by-laws of the Company, and
         do not and will not conflict with, or result in a breach of any of the
         terms or provisions of, or constitute a default under, any indenture,
         mortgage, deed of trust, loan agreement or other agreement or
         instrument to which the Company is a party or by which the Company is
         bound (except for such conflicts, breaches or defaults that could not
         reasonably be expected to have a Material Adverse Effect), nor does or
         will such action result in any violation of any statute or any order,
         rule or regulation of any court or governmental agency or body having
         jurisdiction over the Company or any of its properties; and no consent,
         approval, authorization, order, registration or qualification of or
         with any such court or governmental agency or body is required for the
         issuance and sale of the Securities by the Company to the Initial
         Purchasers as contemplated by this Agreement;

                  (n) Neither the Company nor any of its Subsidiaries is in
         violation of its charter or by-laws or in default in the performance or
         observance of any obligation, agreement, covenant or condition
         contained in any contracts, indenture, mortgage, deed of trust, loan
         agreement, lease or other agreement or instrument to which it is a
         party, except for any such violation or default that would not
         singularly or in the aggregate have a Material Adverse Effect;

                  (o) The Company has filed all documents with the Securities
         and Exchange Commission (the "COMMISSION") that it is required to file
         under the Securities Act and the Securities Exchange Act of 1934, as
         amended (the "EXCHANGE ACT"), as applicable, and the rules and
         regulations of the Commission thereunder, and such documents conformed
         in all material respects to the requirements of the Securities Act or
         the Exchange Act, as applicable, and the rules and regulations of the
         Commission thereunder, and at the time so filed none of such documents
         contained an untrue statement of a material fact or omitted to state a
         material fact required to be stated therein or necessary to make the
         statements therein not misleading; and each document so filed or to be
         filed and incorporated by reference in the Offering Memorandum or any
         further amendment or supplement thereto, complied or will comply when
         so filed in all material respects to the requirements of the Securities
         Act or the Exchange Act, as applicable, and the rules and regulations
         of the Commission thereunder and will not contain an untrue statement
         of a material fact or omit to state a material fact required to be
         stated therein or necessary to make the statements therein not
         misleading;

                  (p) The Offering Memorandum (as amended or supplemented if the
         Company shall have furnished any amendments or supplements thereto)
         does not as of the time hereof and will not, as of the Closing Date,

                                       6
<PAGE>

         contain an untrue statement of a material fact or omit to state a
         material fact necessary in order to make the statements therein, in the
         light of the circumstances under which they were made, not misleading;
         provided, however, that this representation and warranty shall not be
         made to the Initial Purchasers with regard to any statements or
         omissions made in reliance upon and in conformity with information
         furnished in writing to the Company by, or on behalf of, the Initial
         Purchasers;

                  (q) Neither the Company nor any of its Subsidiaries has
         sustained, since the date of the latest audited financial statements
         included or incorporated by reference in the Offering Memorandum, any
         loss or interference with its business from fire, explosion, flood or
         other calamity, whether or not covered by insurance, or from any labor
         dispute or court or governmental action, order or decree, which would
         result in any Material Adverse Effect, or any development involving a
         prospective material adverse change, in or affecting the general
         affairs, management, financial position, stockholders' equity or
         results of operations of the Company and its subsidiaries, taken as a
         whole, otherwise than as set forth or contemplated in the Offering
         Memorandum, and, since the respective dates as of which information is
         given in the Offering Memorandum or since the date of the Offering
         Memorandum, there has not been any change in the capital stock or
         long-term debt of the Company or any of its Subsidiaries, or any
         material adverse change, or any development involving a prospective
         material adverse change, in or affecting the general affairs,
         management, financial position, stockholder's equity or results of
         operations of the Company and its Subsidiaries, taken as a whole,
         otherwise than as disclosed in the Offering Memorandum;

                  (r) The consolidated financial statements filed with or as
         part of any document filed with the Commission present fairly in all
         material respects the financial position, results of operations and
         changes in financial position of the Company and its subsidiaries at
         the dates and for the periods indicated, all in conformity with
         generally accepted accounting principles; and the Company has no
         material contingent obligation which is not disclosed in such financial
         statements or in the Offering Memorandum;

                  (s) Other than as set forth or incorporated by reference in
         the Offering Memorandum, there is no action, suit or proceeding before
         or by any government, governmental instrumentality or court, domestic
         or foreign, now pending or, to the knowledge of the Company, threatened
         against or affecting the Company that could reasonably be expected to
         result in any Material Adverse Effect, or that could reasonably be
         expected to adversely affect the consummation of the transactions
         contemplated in this Agreement;

                                       7
<PAGE>

                  (t) Assuming the accuracy of the representations, warranties
         and agreements of the Initial Purchasers in Section 2 hereof,
         compliance by the Initial Purchasers with the offering and transfer
         procedures and restrictions described in the Offering Memorandum, the
         accuracy of the representations and warranties deemed to be made in the
         Offering Memorandum by purchasers to whom the Initial Purchasers
         initially resell the Securities and that purchasers to whom the Initial
         Purchasers initially resell the Securities receive a copy of the
         Offering Memorandum prior to such sale, it is not necessary in
         connection with the offer, sale and delivery of the Securities to the
         Initial Purchasers or in connection with the initial resale of the
         Securities by the Initial Purchasers, in each case, in the manner
         contemplated by this Agreement and the Offering Memorandum to register
         the Securities under the Securities Act or to qualify the Indenture
         under the Trust Indenture Act of 1939, as amended;

                  (u) The Company, its affiliates and any person acting on its
         or their behalf (other than the Initial Purchasers in connection with
         the transactions contemplated hereby, about which the Company makes no
         representation) have not, directly or indirectly:

                           (i) engaged in any directed selling efforts (within
                  the meaning of Regulation S under the Securities Act) with
                  respect to the Securities;

                           (ii) offered or sold the Securities in the United
                  States by any form of general solicitation or general
                  advertising (within the meaning of Regulation D under the
                  Securities Act) or in any manner involving a public offering
                  within the meaning of Section 4(2) of the Securities Act; or

                           (iii) sold, solicited any offers to buy or offered to
                  sell or otherwise negotiated in respect of any security in a
                  manner that would require registration of the Securities under
                  the Securities Act in accordance with the theory of
                  "integration" referred to in Regulation D under the Securities
                  Act.

                  (v) Assuming the accuracy of the Initial Purchasers'
         representations and warranties and the compliance by the Initial
         Purchasers with their agreements made herein, the Securities offered
         and sold in reliance on Regulation S have been and will be offered and
         sold only in offshore transactions, and the sale of the Securities
         pursuant to Regulation S is not part of a plan or scheme to evade the
         registration provisions of the Securities Act.

                                       8
<PAGE>

                  (w) The Securities satisfy the requirements of Rule 144A(d)(3)
         under the Securities Act.

                  (x) The Final Offering Memorandum will contain the information
         regarding the Company specified in, and which satisfies the
         requirements of, Rule 144A(d)(4) under the Securities Act.

                  (y) Ernst & Young LLP, who have audited certain consolidated
         financial statements of the Company, are independent public accountants
         as required by the Securities Act and the rules and regulations of the
         Commission thereunder.

                  The Company (i) acknowledges that the Initial Purchasers and,
         for purposes of the opinions to be delivered to each Initial Purchaser
         pursuant hereto, counsel to the Company and counsel to the Initial
         Purchasers will rely upon the accuracy and truth of the foregoing
         representations and (ii) hereby consents to such reliance.

         2. REPRESENTATIONS AND WARRANTIES OF THE INITIAL PURCHASERS. Each
Initial Purchaser, severally and not jointly, hereby represents and warrants to,
and agrees with the Company that: each Initial Purchaser (i) is a QIB with such
knowledge and experience in financial and business matters as are necessary to
evaluate the merits and risks of an investment in the Securities; (ii) is not
acquiring the Securities with a view to any distribution thereof that would
violate the Securities Act or the securities or blue sky laws of any state or
country, (iii) has received all information it considers necessary to evaluate
the merits and risks of an investment in the Securities, (iv) has not and will
not solicit offers for, or offer to sell, the Securities by means of any form of
general solicitation or general advertising within the meaning of Rule 502(c)
under the Securities Act, or in any manner involving a public offering within
the meaning of Section 4(2) of the Securities Act; and (v) has and will solicit
offers for the Securities only from, and will offer, sell or deliver the
Securities, as part of their initial offering, only (A) to persons in the United
States whom the Initial Purchasers reasonably believes to be QIBs or, if any
such person is buying for one or more institutional accounts for which such
person is acting as fiduciary or agent, only when such person has represented to
the Initial Purchasers that each such account is a QIB to whom notice has been
given that such sale or delivery is being made in reliance on Rule 144A or (B)
in offshore transactions to non-U.S. persons in reliance on Regulation S.

         Each Initial Purchaser, severally and not jointly, hereby represents
and warrants to, and agrees with the Company that:

                  (i) such Initial Purchaser and its affiliates or any person
         acting on its or their behalf have not engaged or will not engage in
         any directed

                                       9
<PAGE>

         selling efforts within the meaning of Regulation S with respect to the
         Securities;

                  (ii) the Securities offered and sold by such Initial Purchaser
         pursuant hereto in reliance on Regulation S have been and will be
         offered and sold only in offshore transactions;

                  (iii) the sale of the Securities offered and sold by such
         Initial Purchaser pursuant hereto in reliance on Regulation S is not
         part of a plan or scheme to evade the registration provisions of the
         Securities Act;

                  (iv) such Initial Purchaser has not offered or sold and will
         not offer or sell the Securities in the United States or to, or for the
         benefit or account of, a U.S. Person (other than a distributor), in
         each case, as defined in Rule 902 under the Securities Act (a) as part
         of its distribution at any time and (b) otherwise until 40 days after
         the later of the commencement of the offering of the Securities
         pursuant hereto and the Closing Date, other than in accordance with
         Regulation S of the Securities Act or another exemption from the
         registration requirements of the Securities Act;

                  (v) it has (A) not offered or sold and, prior to the date six
         months after the Closing Date, will not offer or sell any Securities to
         persons in the United Kingdom except to persons whose ordinary
         activities involve them in acquiring, holding, managing or disposing of
         investments (as principal or agent) for the purposes of their
         businesses or otherwise in circumstances which have not resulted and
         will not result in an offer to the public in the United Kingdom within
         the meaning of the Public Offers of Securities Regulations 1995; (B)
         complied and will comply with all applicable provisions of the
         Financial Services Act 1986 with respect to anything done by it in
         relation to the Securities in, from or otherwise involving the United
         Kingdom, and (C) only issued or passed on and will only issue or pass
         on in the United Kingdom any document received by it in connection with
         the issue of the Securities to a person who is of a kind described in
         Article 11(3) of the Financial Services Act of 1986 (Investment
         Advertisements) (Exemptions) Order 1996 or is a person to whom such
         document may otherwise lawfully be issued or passed on;

                  (vi) at or prior to confirmation of a sale of Securities by
         such Initial Purchaser pursuant hereto in reliance on Regulation S to
         any distributor, dealer or person receiving a selling concession, fee
         or other remuneration during the 40-day restricted period referred to
         in Rule 903(b)(2) under the Securities Act, it will send to such
         distributor, dealer or person receiving a selling concession, fee or
         other remuneration a confirmation or notice to substantially the
         following effect:

                                       10
<PAGE>

                  "The Securities covered hereby have not been registered under
                  the U.S. Securities Act of 1933, as amended (the "Securities
                  Act"), and may not be offered and sold within the United
                  States or to, or for the account or benefit of, U.S. persons
                  (i) as part of your distribution at any time or (ii) otherwise
                  until 40 days after the later of the commencement of the
                  Offering and the Closing Date, except in either case in
                  accordance with Regulation S under the Securities Act or Rule
                  144A in transactions that are exempt from the registration
                  requirements of the Securities Act, and in connection with any
                  subsequent sale by you of the Securities covered hereby in
                  reliance on Regulation S during the period referred to above
                  to any distributor, dealer or person receiving a selling
                  concession, fee or other remuneration, you must deliver a
                  notice to substantially the foregoing effect. Terms used above
                  have the meanings assigned to them in Regulation S."

         The Initial Purchasers (i) acknowledge that the Company and, for
purposes of the opinions to be delivered to each Initial Purchaser pursuant
hereto, counsel to the Company and counsel to the Initial Purchasers will rely
upon the accuracy and truth of the foregoing representations and (ii) hereby
consent to such reliance.

         3. AGREEMENTS TO SELL AND PURCHASE. The Company hereby agrees to sell
and each Initial Purchaser, upon the basis of the representations and warranties
herein contained, but subject to the conditions hereinafter stated, agrees,
severally and not jointly, to purchase from the Company the respective principal
amounts of Securities set forth in Schedule I hereto opposite its name at
99.0850% of their principal amount (the "PURCHASE PRICE") plus accrued interest,
if any, from August 27, 2001 to the date of payment and delivery.

         4. PAYMENT AND DELIVERY. Payment for the Securities shall be made by
wire or other immediately available funds to the order of the Company to a bank
account designated by the Company at 10:00 A.M., New York time, on August 27,
2001, or at such other time on the same or such other date, as shall be agreed
by the parties and designated in writing by the Initial Purchasers. The time and
date of such payment are herein referred to as the "CLOSING DATE."

         Payment for the Securities shall be made against delivery to the
Initial Purchasers of the one or more global notes representing the Securities
(collectively, the "GLOBAL NOTE") registered in the name of Cede & Co. (the
"GLOBAL HOLDER") with any transfer taxes payable in connection with the transfer
of the Securities to the Initial Purchasers duly paid. Such Global Note shall be
made available to the Initial Purchasers for checking at least twenty four hours
prior to the Closing Date, at the offices of Davis Polk & Wardwell, New York,
New York.

                                       11
<PAGE>

         5. CONDITIONS TO THE INITIAL PURCHASER'S OBLIGATIONS. The obligations
of the Initial Purchasers are subject to the following conditions:

                  (a) Subsequent to the execution and delivery of this Agreement
         and prior to the Closing Date:

                           (i) there shall not have occurred any downgrading,
                  nor shall any notice have been received of (A) any intended or
                  potential downgrading or (B) any review or possible change
                  that does not indicate the direction of a possible change, in
                  the rating accorded any of the Company's securities by any
                  "nationally recognized statistical rating organization," as
                  such term is defined for purposes of Rule 436(g)(2) under the
                  Act; and

                           (ii) there shall not have occurred any material
                  adverse change, or any development which could reasonably be
                  expected to result in a prospective material adverse change,
                  in the financial condition, or in the earnings, business or
                  operations of the Company and its subsidiaries, taken as a
                  whole, from that set forth in the Final Offering Memorandum.

                  (b) The Initial Purchasers shall have received on the Closing
         Date a certificate, dated the Closing Date and signed by an executive
         officer of the Company, to the effect set forth in clauses (a)(i) and
         (ii) above and to the effect that the representations and warranties of
         the Company contained in this Agreement are true and correct as of the
         Closing Date and that the Company has complied with all of the
         agreements and satisfied all of the conditions on its part to be
         performed or satisfied hereunder on or before the Closing Date.

                      The officer signing and delivering such certificate may
         rely upon the best of his or her knowledge as to proceedings
         threatened.

                  (c) The Initial Purchasers shall have received on the Closing
         Date an opinion of William G. von Glahn, Esq., Senior Vice President
         and General Counsel of The Williams Companies, Inc., dated the Closing
         Date, with such exceptions and qualifications as shall be agreed by the
         Initial Purchasers, to the effect set forth in Exhibit A.

                  The opinion of William G. von Glahn, Esq. described in Exhibit
         A shall be rendered to the Initial Purchasers at the request of the
         Company and shall so state therein.

                  (d) The Initial Purchasers shall have received on the Closing
         Date an opinion from Andrews & Kurth LLP, special counsel for the

                                       12
<PAGE>

         Company, dated the Closing Date, with such exceptions and
         qualifications as shall be agreed by the Initial Purchasers, to the
         effect set forth in Exhibit B.

                  (e) The Initial Purchasers shall have received on the Closing
         Date an opinion of Davis Polk & Wardwell, counsel for the Initial
         Purchasers, dated the Closing Date, covering the matters referred to in
         subparagraph (ix) of Exhibit A, and such other matters as shall be
         agreed by the Initial Purchasers.

                  With respect to subparagraph (ix) of Exhibit A, Davis Polk &
         Wardwell may state that their opinion and belief are based upon their
         participation in the preparation of the Offering Memorandum (excluding
         any documents incorporated by reference therein) and any amendments or
         supplements thereto and review and discussion of the contents thereof,
         but are without independent check or verification, except as specified.
         Davis Polk & Wardwell may also state that they have relied solely on
         the opinion of William G. von Glahn, Esq., as to matters relating to
         the regulation of the Company by the Federal Energy Regulatory
         Commission.

                  (f) The Initial Purchasers shall have received on the date
         hereof and on the Closing Date letters, in form and substance
         satisfactory to the Initial Purchasers, from Ernst & Young LLP,
         independent public accountants, containing statements and information
         of the type ordinarily included in accountants' "comfort letters" to
         underwriters with respect to the financial statements and certain
         financial information contained or incorporated by reference in the
         Offering Memorandum.

                  (g) The Initial Purchasers and the Company shall have validly
         entered into the Registration Rights Agreement, substantially in the
         form of Exhibit C hereto.

         6. COVENANTS OF THE COMPANY. In further consideration of the agreements
of the Initial Purchasers herein contained, the Company, its affiliates and any
person acting on its or their behalf, covenant with the Initial Purchasers as
follows:

                  (a) The Company, its affiliates and any person acting on its
         or their behalf will not, directly or indirectly:

                           (i) engage in any directed selling efforts (within
                  the meaning of Regulation S under the Securities Act) with
                  respect to the Securities;

                                       13
<PAGE>

                           (ii) offer or sell the Securities in the United
                  States by any form of general solicitation or general
                  advertising (within the meaning of Regulation D under the
                  Securities Act) or in any manner involving a public offering
                  within the meaning of Section 4(2) of the Securities Act; or

                           (iii) sell, solicit any offers to buy or offer to
                  sell or otherwise negotiate in respect of any security in a
                  manner that would require registration of the Securities under
                  the Securities Act in accordance with the theory of
                  "integration" referred to in Regulation D under the Securities
                  Act.

                  (b) While any Security remains outstanding, during any period
         in which the Company is not subject to Section 13 or Section 15(d) of
         the Securities Exchange Act of 1934, as amended, and its securities are
         not exempt from Section 12(g) thereof pursuant to Rule 12g3-2(b)
         thereunder, the Company will upon request make available to the Initial
         Purchasers, to any holder of Securities, and to any prospective
         purchaser designated by any holder of Securities, the information
         regarding the Company specified in, and satisfying the requirements of,
         Rule 144A(d)(4) under the Securities Act.

                  (c) The Company will prepare the Final Offering Memorandum in
         a form approved by the Initial Purchasers, and before amending or
         supplementing the Final Offering Memorandum, will furnish to UBS
         Warburg LLC on behalf of the Initial Purchasers a copy of each such
         proposed amendment or supplement and will not prepare any such proposed
         amendment or supplement to which the Initial Purchasers reasonably
         object.

                  (d) As soon as practicable but in no event later than the New
         York Business Day (as defined below) next succeeding the date of this
         Agreement and from time to time during the period that in the opinion
         of counsel for the Initial Purchasers a Final Offering Memorandum is
         required by law to be delivered in connection with Exempt Resales by
         the Initial Purchasers, the Company will furnish the Initial
         Purchasers, in New York City, with copies of the Final Offering
         Memorandum and each amendment or supplement thereto, together with any
         independent accountants' report contained in the Final Offering
         Memorandum, and any amendment or supplement containing amendments to
         the financial statements covered by such report, signed by the
         accountants, and additional copies thereof in such quantities as the
         Initial Purchasers from time to time reasonably request, and if, at any
         time prior to the consummation of any Exempt Resale, any event shall
         have occurred as a result of which the Final Offering Memorandum as
         then amended or

                                       14
<PAGE>

         supplemented would include an untrue statement of a material fact or
         omit to state any material fact necessary in order to make the
         statements therein, in the light of the circumstances under which they
         were made when such Final Offering Memorandum is delivered, not
         misleading, or, if for any other reason it shall be necessary or
         desirable, during such same period to amend or supplement the Final
         Offering Memorandum, the Company will notify the Initial Purchasers and
         upon the Initial Purchaser's request to prepare and furnish without
         charge to the Initial Purchasers and to any dealer in securities as
         many copies as the Initial Purchasers may from time to time reasonably
         request of the amended Final Offering Memorandum or supplement to the
         Final Offering Memorandum which will correct such statement or omission
         or effect such compliance. For the purposes of this paragraph, "New
         York Business Day" shall mean any day that is not a day on which
         banking institutions in New York are generally authorized or required
         by law or regulation to close;

                  (e) During the period beginning on the date hereof and
         continuing to and including the Closing Date, the Company will not
         offer, sell, contract to sell or otherwise dispose of any debt
         securities of the Company or warrants to purchase debt securities of
         the Company substantially similar to the Securities (other than the
         Securities and commercial paper issued in the ordinary course of
         business), without the prior written consent of the Initial Purchasers.

                  (f) The Company will arrange for the qualification of the
         Securities for sale under the laws of such states in the United States
         as the Initial Purchasers designate and will continue such
         qualifications in effect so long as required for the resale of the
         Securities by the Initial Purchasers; provided that the Company will
         not be required to qualify as a foreign corporation or to file a
         general consent to service of process in any such state.

                  (g) Whether or not the transactions contemplated by this
         Agreement are consummated or this Agreement is terminated, the Company
         will pay all expenses incident to the performance of its obligations
         under this Agreement, including: (i) expenses associated with the
         preparation, printing and distribution of the Offering Memorandum and
         all amendments and supplements thereto; (ii) the preparation, issuance
         and delivery of the Securities; (iii) the fees and disbursements of the
         Company's counsel and accountants and of the Trustee and its counsel;
         (iv) the fees and disbursements of the Initial Purchasers' counsel; (v)
         the costs of qualification of the Securities under state securities or
         blue sky laws in accordance with the provisions of Section 6(f),
         including filing fees and the fees and disbursements of counsel for the
         Initial Purchasers in connection therewith and in connection with the
         preparation of any blue

                                       15
<PAGE>

         sky or legal investment memoranda; (vi) the costs of printing and
         delivery to the Initial Purchasers in quantities as herein above stated
         of copies of the Offering Memorandum and any amendments or supplements
         thereto; (vii) the costs of printing and delivery to the Initial
         Purchasers of copies of any blue sky or legal investment memoranda;
         (viii) any fees charged by rating agencies for the rating of the
         Securities; and (ix) any expenses incurred by the Company in connection
         with a "road show" presentation to potential investors.

                  (h) To take all reasonable action necessary to enable Standard
         & Poor's Rating Service, a division of McGraw Hill, Inc. ("S&P"), and
         Moody's Investor Service, Inc. ("MOODY'S") to provide their respective
         ratings of the Securities.

                  (i) To cooperate with the Initial Purchasers and use its
         reasonable best efforts to permit the Securities to be eligible for
         clearance and settlement through the facilities of The Depository Trust
         Company.

         7. COVENANTS OF THE INITIAL PURCHASERS.

                  (a) Each Initial Purchaser severally acknowledges that the
         Securities have not been and will not be registered under the
         Securities Act and severally agrees that it, its affiliates and any
         person acting on its or their behalf:

                           (i) will not offer or sell the Securities in the
                  United States by any form of general solicitation or general
                  advertising (within the meaning of Regulation D under the
                  Securities Act) or in any manner involving a public offering
                  within the meaning of Section 4(2) if the Securities Act; and

                           (ii) will offer or sell the Securities only to
                  persons whom it reasonably believes to be qualified
                  institutional buyers ("QIBS") within the meaning of Rule 144A
                  under the Securities Act in compliance with Rule 144A or in
                  offshore transactions to non-U.S. persons in reliance on
                  Regulation S.

         8. INDEMNITY AND CONTRIBUTION.

                  (a) The Company agrees to indemnify and hold harmless each
         Initial Purchaser and each person, if any, who controls any of the
         Initial Purchasers within the meaning of either Section 15 of the
         Securities Act or Section 20 of the Securities Exchange Act of 1934, as
         amended (the "EXCHANGE ACT"), from and against any and all losses,
         claims, damages and liabilities (including, without limitation, any
         legal or other expenses

                                       16
<PAGE>

         reasonably incurred by any Initial Purchaser or any such controlling
         person in connection with defending or investigating any such action or
         claim) caused by any untrue statement or alleged untrue statement of a
         material fact contained in the Offering Memorandum or any amendment
         thereof (as amended or supplemented if the Company shall have furnished
         any amendments or supplements thereto), or caused by any omission or
         alleged omission to state therein a material fact required to be stated
         therein or necessary to make the statements therein not misleading,
         except insofar as such losses, claims, damages or liabilities are
         caused by any such untrue statement or omission or alleged untrue
         statement or omission based upon information relating to each Initial
         Purchaser furnished to the Company in writing by the Initial Purchasers
         expressly for use therein; provided however that the foregoing
         indemnity agreement with respect to the Preliminary Offering Memorandum
         shall not inure to the benefit of the Initial Purchasers, or any person
         controlling any of the Initial Purchasers, if the person asserting any
         such losses, claims, damages or liabilities purchased Securities, and a
         copy of the Final Offering Memorandum (as then amended or supplemented
         if the Company shall have furnished any amendments or supplements
         thereto) was not sent or given by or on behalf of the Initial
         Purchasers to such person, at or prior to the written confirmation of
         the sale of the Securities to such person, and if the Final Offering
         Memorandum (as so amended or supplemented) would have cured the defect
         giving rise to such losses, claims, damages or liabilities.

                  (b) Each Initial Purchaser agrees, severally and not jointly,
         to indemnify and hold harmless the Company, its directors, its
         officers, its employees, its agents and each person, if any, who
         controls the Company within the meaning of either Section 15 of the
         Securities Act or Section 20 of the Exchange Act to the same extent as
         the foregoing indemnity from the Company to each Initial Purchaser, but
         only with reference to information relating to such Initial Purchaser
         furnished to the Company in writing by each Initial Purchaser expressly
         for use in the Offering Memorandum or any amendments or supplements
         thereto.

                  (c) In case any proceeding (including any governmental
         investigation) shall be instituted involving any person in respect of
         which indemnity may be sought pursuant to either paragraph (a) or (b)
         of this Section 8, such person (the "INDEMNIFIED PARTY") shall promptly
         notify the person against whom such indemnity may be sought (the
         "INDEMNIFYING PARTY") in writing and the indemnifying party, upon
         request of the indemnified party, shall retain counsel reasonably
         satisfactory to the indemnified party to represent the indemnified
         party and any others the indemnifying party may designate in such
         proceeding and shall pay the fees and disbursements of such counsel
         related to such proceeding. In any such proceeding, any indemnified
         party shall have the

                                       17
<PAGE>

         right to retain its own counsel, but the fees and expenses of such
         counsel shall be at the expense of such indemnified party unless (i)
         the indemnifying party and the indemnified party shall have mutually
         agreed to the retention of such counsel, (ii) the indemnifying party
         shall have failed to assume the defense of such action or employ
         counsel reasonably satisfactory to the indemnified party or (iii) the
         named parties to any such proceeding (including any impeded parties)
         include both the indemnifying party and the indemnified party and
         representation of both parties by the same counsel would be
         inappropriate due to actual or potential differing interests between
         them. Such firm shall be designated in writing by UBS Warburg LLC, in
         the case of the parties indemnified pursuant to Section 8(a), and by
         the Company, in the case of parties indemnified pursuant to Section
         8(b). It is understood that the indemnifying party shall not, in
         respect of the legal expenses of any indemnified party in connection
         with any proceeding or related proceedings in the same jurisdiction, be
         liable for the fees and expenses of more than one separate firm (in
         addition to any local counsel) for all such indemnified parties and
         that all such fees and expenses shall be reimbursed as they are
         incurred. The indemnifying party shall not be liable for any settlement
         of any proceeding effected without its written consent, but if settled
         with such consent or if there be a final judgment for the plaintiff,
         the indemnifying party agrees to indemnify the indemnified party from
         and against any loss or liability by reason of such settlement or
         judgment. Notwithstanding the foregoing sentence, if at any time an
         indemnified party shall have requested an indemnifying party to
         reimburse the indemnified party for fees and expenses of counsel as
         contemplated by the second and third sentences of this paragraph, the
         indemnifying party agrees that it shall be liable for any settlement of
         any proceeding effected without its written consent if (i) such
         settlement is entered into more than 30 days after receipt by such
         indemnifying party of the aforesaid request and (ii) such indemnifying
         party shall not have reimbursed the indemnified party in accordance
         with such request prior to the date of such settlement. No indemnifying
         party shall, without the prior written consent of the indemnified
         party, effect any settlement of any pending or threatened proceeding in
         respect of which any indemnified party is or could have been a party
         and indemnity could have been sought hereunder by such indemnified
         party, unless such settlement includes an unconditional release of such
         indemnified party from all liability on claims that are the subject
         matter of such proceeding and does not include a statement as to or an
         admission of fault, culpability or a failure to act, by or on behalf of
         the indemnified party.

                  (d) To the extent the indemnification provided for in
         paragraph (a) or (b) of this Section 8 is unavailable to an indemnified
         party or insufficient in respect of any losses, claims, damages or
         liabilities referred to therein, then each indemnifying party under
         such paragraph, in lieu of

                                       18
<PAGE>

         indemnifying such indemnified party thereunder, shall contribute to the
         amount paid or payable by such indemnified party as a result of such
         losses, claims, damages or liabilities (i) in such proportion as is
         appropriate to reflect the relative benefits received by the Company on
         the one hand and each Initial Purchaser on the other hand from the
         offering and sale of the Securities or (ii) if the allocation provided
         by clause (i) above is not permitted by applicable law, in such
         proportion as is appropriate to reflect not only the relative benefits
         referred to in clause (i) above but also the relative fault of the
         Company on the one hand and of the Initial Purchasers on the other hand
         in connection with the statements or omissions that resulted in such
         losses, claims, damages or liabilities, as well as any other relevant
         equitable considerations. The relative benefits received by the Company
         on the one hand and the Initial Purchasers on the other hand in
         connection with the offering of the Securities shall be deemed to be in
         the same respective proportions as the net proceeds from the offering
         of the Securities (before deducting expenses) received by the Company
         and the total underwriting discounts and commissions received by the
         Initial Purchasers, in each case as set forth in the Offering
         Memorandum, bears to the aggregate initial offering price of the
         Securities. The relative fault of the Company on the one hand and the
         Initial Purchasers on the other hand shall be determined by reference
         to, among other things, whether the untrue or alleged untrue statement
         of a material fact or the omission or alleged omission to state a
         material fact relates to information supplied by the Company or by the
         Initial Purchasers and the parties' relative intent, knowledge, access
         to information and opportunity to correct or prevent such statement or
         omission.

                  (e) The Company and the Initial Purchasers agree that it would
         not be just or equitable if contribution pursuant to this Section 8
         were determined by pro rata allocation or by any other method of
         allocation that does not take account of the equitable considerations
         referred to in paragraph (d) of this Section 8. The amount paid or
         payable by an indemnified party as a result of the losses, claims,
         damages and liabilities referred to in the immediately preceding
         paragraph shall be deemed to include, subject to the limitations set
         forth above, any legal or other expenses reasonably incurred by such
         indemnified party in connection with investigating or defending or
         appearing as a third party witness in any such action or claim.
         Notwithstanding the provisions of this Section 8, the Initial
         Purchasers shall not be required to contribute any amount in excess of
         the amount by which the total price at which the Securities purchased
         by it exceeds the amount of any damages that the Initial Purchasers
         have otherwise been required to pay by reason of such untrue or alleged
         untrue statement or omission or alleged omission. The remedies provided
         for in this Section 8 are not exclusive and shall not limit any rights
         or remedies

                                       19
<PAGE>

         which may otherwise be available to any indemnified party at law or in
         equity.

                  (f) The indemnity and contribution provisions contained in
         this Section 8 and the representations, warranties and other statements
         of the Company contained in this Agreement shall remain operative and
         in full force and effect regardless of (i) any termination of this
         Agreement, (ii) any investigation made by or on behalf of the Initial
         Purchasers or any person controlling the Initial Purchasers or by or on
         behalf of the Company, its officers or directors or any person
         controlling the Company and (iii) acceptance of and payment for any of
         the Securities.

         9. TERMINATION. This Agreement shall be subject to termination by
notice given by the Initial Purchasers to the Company, if (a) after the
execution and delivery of this Agreement and prior to the Closing Date any of
the events described in Section 5(a) shall have occurred or (i) trading
generally shall have been suspended or materially limited on or by, as the case
may be, any of the New York Stock Exchange, the American Stock Exchange, the
National Association of Securities Dealers, Inc., the Chicago Board of Options
Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade, (ii)
trading of any securities of the Transcontinental Gas Pipe Line Corporation or
The Williams Companies, Inc. shall have been suspended on any exchange or in any
over-the-counter market, (iii) a general moratorium on commercial banking
activities in New York shall have been declared by either Federal or New York
State authorities or (iv) there shall have occurred any outbreak or escalation
of hostilities or any change in financial markets or any calamity or crisis
that, in your judgment, is material and adverse and (b) in the case of any of
the events specified in clauses (a)(i) through (iv), such event, singly or
together with any other such event, makes it, in your judgment, impracticable to
market the Securities on the terms and in the manner contemplated in the
Offering Memorandum. Notice of such cancellation shall be given to the Company
by telecopy or telephone but shall be subsequently confirmed by letter.

         10. EFFECTIVENESS; DEFAULTING INITIAL PURCHASERS. This Agreement shall
become effective upon the execution and delivery hereof by the parties hereto.
If, on the Closing Date, any one or more of the Initial Purchasers shall fail or
refuse to purchase Securities that it has or they have agreed to purchase
hereunder on such date, and the aggregate principal amount of Securities which
such defaulting Initial Purchaser or Initial Purchasers agreed but failed or
refused to purchase is not more than one-tenth of the aggregate principal amount
of the Securities to be purchased on such date, the other Initial Purchasers
shall be obligated severally in the proportions that the principal amount of
Securities set forth opposite their respective names in Schedule I bear to the
principal amount of Securities set forth opposite the names of all such
non-defaulting Initial Purchasers, or in such other proportions as you may
specify, to purchase the

                                       20
<PAGE>

Securities which such defaulting Initial Purchaser or Initial Purchasers agreed
but failed or refused to purchase on such date; provided that in no event shall
the principal amount of Securities that any Initial Purchaser has agreed to
purchase pursuant to this Agreement be increased pursuant to this Section 10 by
an amount in excess of one-ninth of such principal amount of Securities without
the written consent of such Initial Purchaser. If, on the Closing Date, any
Initial Purchaser or Initial Purchasers shall fail or refuse to purchase
Securities and the aggregate principal amount of Securities with respect to
which such default occurs is more than one-tenth of the aggregate principal
amount of Securities to be purchased on such date, and arrangements satisfactory
to you and the Company for the purchase of such Securities are not made within
36 hours after such default, this Agreement shall terminate without liability on
the part of any non-defaulting Initial Purchaser or the Company. In any such
case either you or the Company shall have the right to postpone the Closing
Date, but in no event for longer than seven days, in order that the required
changes, in the Offering Memorandum or in any other documents or arrangements
may be effected. Any action taken under this paragraph shall not relieve any
defaulting Initial Purchaser from liability in respect of any default of such
Initial Purchaser under this Agreement.

         If this Agreement shall be terminated by the Initial Purchasers, or any
of them, because of any failure or refusal on the part of the Company to comply
with the terms or to fulfill any of the conditions of this Agreement, or if for
any reason the Company shall be unable to perform its obligations under this
Agreement, the Company will reimburse the Initial Purchasers or such Initial
Purchasers as have so terminated this Agreement with respect to themselves,
severally, for all out-of-pocket expenses (including the fees and disbursements
of their counsel) reasonably incurred by such Initial Purchasers in connection
with this Agreement or the offering contemplated hereunder.

         Any notice under this Section 10 may be made by telecopy or telephone
but shall be subsequently confirmed by letter.

         11. REIMBURSEMENT OF INITIAL PURCHASER'S EXPENSES. If this Agreement
shall be terminated by the Initial Purchasers because of any failure or refusal
on the part of the Company to comply with the terms or to fulfill any of the
conditions of this Agreement, or if for any reason the Company shall be unable
to perform its obligations under this Agreement, the Company will reimburse the
Initial Purchasers for all out-of-pocket expenses (including the fees and
disbursements of its counsel) reasonably incurred by the Initial Purchasers in
connection with this Agreement and the offering contemplated hereunder.

         12. NOTICES. Except as otherwise provided notice given pursuant to any
of the provisions of this Agreement shall be in writing and shall be delivered
(a) if to the Company, at 2800 Post Oak Blvd., P.O. Box 1396, Houston, Texas
77251, Attention: Treasurer, or (b) if to the Initial Purchasers, at the offices
of UBS

                                       21
<PAGE>

Warburg LLC, 677 Washington Boulevard, Stamford, CT 06901, or in any case to
such other address as the person to be notified may have requested in writing.

         13. SUCCESSORS. The Agreement is made solely for the benefit of the
Initial Purchasers, the Company, their directors and officers and other
controlling persons referred to in Section 8 hereof, and their respective
successors and assigns, and no other person shall acquire or have any right
under or by virtue of this Agreement. The term "successors and assigns" as used
in this Agreement shall not include a purchaser from the Initial Purchasers of
any of the Securities in his status as such purchaser.

         14. PARTIAL UNENFORCEABILITY. If any section, paragraph or provision of
this Agreement is for any reason determined to be invalid or unenforceable, such
determination shall not affect the validity or enforceability of any other
section, paragraph or provision hereof.

         15. COUNTERPARTS. This Agreement may be signed in two or more
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

         16. APPLICABLE LAW. This Agreement shall be governed by and construed
in accordance with the internal laws of the State of New York.

         17. HEADINGS. The headings of the sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed a part of
this Agreement.

                                       22
<PAGE>

         Please confirm that the foregoing correctly sets forth the agreement
among the Company and the Initial Purchasers.

                                            Very truly yours,

                                            TRANSCONTINENTAL GAS PIPE LINE
                                            CORPORATION

                                            By: /s/ NICK A. BACILE
                                                -------------------------------
                                                Name: Nick A. Bacile
                                                Title:

Accepted as of the date hereof:

By: UBS WARBURG LLC

/s/ KIMBERLY BLUE
----------------------------------
    Name: Kimberly Blue
    Title: Managing Director

/s/ SCOTT WHITNEY
----------------------------------
    Name: Scott Whitney
    Title: Associate Director

By: J.P. MORGAN SECURITIES INC.

/s/ PETER MADONIA
----------------------------------
    Name: Peter Madonia
    Title:

By: ABN AMRO INCORPORATED

/s/ VINCENT MURRAY
----------------------------------
    Name: Vincent Murray
    Title:

                                       23
<PAGE>

By: BMO NESBITT BURN CORP.

/s/ TIMOTHY P. MEYER
----------------------------------
    Name: Timothy P. Meyer
    Title: Managing Director

By: BNY CAPITAL MARKETS, INC.

/s/ BENNETT LEICHMAN
----------------------------------
    Name: Bennett Leichman
    Title: Vice President

By: MIZUHO INTERNATIONAL PLC

/s/ SABAH ZUBAIDA
----------------------------------
    Name:  Sabah Zubaida
    Title: Managing Director

By: THE ROYAL BANK OF SCOTLAND PLC

/s/ DAVID HOPKINS
----------------------------------
    Name: David Hopkins
    Title: Authorized Signatory

By: SG COWEN SECURITIES CORPORATION

/s/ DONALD B. KYLE
----------------------------------
    Name: Donald B. Kyle
    Title: Managing Director

By: TOKYO-MITSUBISHI INTERNATIONAL PLC

/s/ HAJIME WATANABE
----------------------------------
    Name: Hajime Watanabe
    Title: Managing Director

                                       24
<PAGE>

                                                                       EXHIBIT A

                     OPINION OF WILLIAM G. VON GLAHN, ESQ.,
                  SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF
                          THE WILLIAMS COMPANIES, INC.

         (i) The Company and each of its Subsidiaries have been duly
incorporated (in the case of each Subsidiary that is a corporation) or otherwise
validly organized or validly formed and are validly existing in good standing
under the laws of their respective jurisdictions of formation or incorporation,
have the requisite power and authority to own their property and to conduct
their business as described in the Offering Memorandum and are duly qualified to
do business and are in good standing in each jurisdiction in which their
respective ownership or lease of property or the conduct of their respective
businesses requires such qualification, except to the extent such failure to be
qualified or in good standing would not have a material adverse effect on the
consolidated financial position, results of operations, business or prospects of
the Company and its subsidiaries, taken as a whole (a "MATERIAL ADVERSE
EFFECT"), and all of the issued shares of capital stock of each Subsidiary (in
the case of each Subsidiary that is a corporation) have been duly and validly
authorized and issued and are fully paid, non-assessable and are owned directly
or indirectly by the Company, free and clear of all liens, encumbrances,
equities or claims;

         (ii) the Company and its subsidiaries hold all franchises, certificates
of public convenience and necessity, consents, authorizations, approvals,
orders, permits, licenses and easements necessary to own, operate and maintain
its properties as described in the Offering Memorandum, subject only to such
defects, irregularities, restrictions, conditions and other matters as are
described in the Offering Memorandum or which do not materially affect the right
of the Company or its subsidiaries to own, operate and maintain its properties
and to conduct its business as described therein, and has made all declarations
and filings with, all federal, state, local and other governmental authorities,
and all courts or other tribunals, necessary to conduct its business in the
manner described in the Offering Memorandum, except to the extent that the lack
of such consents, authorizations, approvals, orders, certificates or permits
would not have a Material Adverse Effect;

         (iii) neither the Company nor any of its Subsidiaries (i) is in
violation of its charter or bylaws, (ii) is in default in any material respect,
and no event has occurred which, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term,
covenant or condition contained in any material indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which it is a party or
by which it is bound or to which any of its properties or assets is subject or
(iii) is in violation in any material respect of any law, ordinance,
governmental rule, regulation or court

                                       A-1

<PAGE>

decree to which it or its property or assets may be subject or has failed to
obtain any material license, permit, certificate, franchise or other
governmental authorization or permit necessary to the ownership of its property
or to the conduct of its business except, in case of (ii) and (iii), for such
defaults, violations, or failures to obtain such authorizations or permits that
have not had or are not reasonably expected to have, a Material Adverse Effect;

         (iv) the Purchase Agreement has been duly authorized, executed, and
delivered by the Company and is a valid and binding agreement of the Company,
enforceable in accordance with its terms subject, as to enforcement, to
bankruptcy, insolvency, reorganization, and other laws of general applicability
relating to or affecting creditors' rights and to general equity principles, and
except as rights to indemnity and contribution thereunder may be limited under
applicable law;

         (v) the execution and delivery by the Company of, and the performance
by the Company of its obligations under, this Agreement, the Registration Rights
Agreement, the Securities and the Indenture will not contravene any provision of
applicable law, or the Certificate of Incorporation or By-laws of the Company or
any agreement or other instrument binding upon the Company that is material to
the Company, or any judgment, order, decree of any governmental body, agency or
court having jurisdiction over the Company;

         (vi) the Company has filed all documents with the Commission that it is
required to file under the Securities Act and the Exchange Act, as applicable,
and the rules and regulations of the Commission thereunder, and such documents
(other than the financial statements, including the notes thereto, and related
schedules therein, and the other financial and accounting data, as to which such
counsel need express no opinion) conformed in all material respects to the
requirements of the Securities Act or the Exchange Act, as applicable, and the
rules and regulations of the Commission thereunder;

         (vii) to the knowledge of such counsel, there are no legal or
governmental proceedings pending or threatened to which the Company is a party
or to which any of the properties of the Company is subject that are required to
be described in the documents incorporated by reference in the Offering
Memorandum and are not so described;

         (viii) the Company is not, and following the consummation of the
transactions contemplated herein will not be an "investment company" or an
entity "controlled" by an "investment company," as such terms are defined in the
Investment Company Act of 1940, as amended; and

         (ix) such counsel has no reason to believe that (except for financial
statements and schedules and related notes thereto, and the other financial,
statistical and accounting data as to which such counsel need not express any

                                       A-2
<PAGE>

belief) the Offering Memorandum as of its date or as of the Closing Date
contained or contains any untrue statement of a material fact or omitted or
omits to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

                                       A-3
<PAGE>

                                                                       EXHIBIT B

                         OPINION OF ANDREWS & KURTH LLP

         1. The Securities, when authenticated in accordance with the terms of
the Indenture and delivered to and paid for by the Initial Purchasers in
accordance with the terms of the Purchase Agreement, will be valid and binding
obligations of the Company, enforceable against the Company in accordance with
the terms of the Securities and the Indenture under the laws of the State of New
York.

         2. The Indenture is a valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms under the laws of
the State of New York.

         3. The Securities and the Indenture conform in all material respects to
the descriptions thereof contained in the Offering Memorandum.

         4. No consent, approval, authorization or other order of, or filing
with, any Governmental Authority is legally required under any Applicable Laws
of the State of New York or under any Applicable Laws of the United States of
America for the issuance or sale to the Initial Purchasers of the Securities as
contemplated by the Purchase Agreement.

         5. The execution and delivery by the Company of the Purchase Agreement
and the Indenture and the issuance and sale of the Securities to the Initial
Purchasers as contemplated thereby and the performance of the Company's
obligations pursuant to the Purchase Agreement and the Indenture will not
conflict with or violate any Applicable Law of the State of New York or any
Applicable Law of the United States of America.

         6. The Registration Rights Agreement is a valid and binding agreement
of the Company enforceable against the Company in accordance with its terms
under the laws of the State of New York.

         7. The Indenture conforms in all material respects to the requirements
of the Trust Indenture Act of 1939, as amended (the "TIA"), and the rules and
regulations of the SEC applicable to an indenture that would be qualified
thereunder.

         8. The information in the Offering Memorandum under the caption
"Description of the Notes" insorfar as such information constitutes summaries of
legal matters or certain provisions of the documents referred to therein, fairly
summarizes the matters referred to therein in all material respects.

                                       B-1
<PAGE>

         9. Assuming (i) the accuracy of the representations and warranties of
the Company set forth in Section 1 of the Purchase Agreement, (ii) the due
performance by the Company of the covenants and agreements set forth in Section
6 of the Purchase Agreement, (iii) the compliance by the Initial Purchasers with
the offering and transfer procedures and the restrictions described in the
Offering Memorandum and their covenants in Section 7 of the Purchase Agreement,
(iv) the accuracy of the representations and warranties of the Initial
Purchasers set forth in Section 2 of the Purchase Agreement, and (v) and that
purchasers to whom the Initial Purchasers initially resell the Notes receive a
copy of the Offering Memorandum prior to such sale, the offer, sale and delivery
of the Notes to the Initial Purchasers in the manner contemplated by the
Purchase Agreement and the Offering Memorandum and the initial resale of the
Notes by the Initial Purchasers in the manner contemplated in the Offering
Memorandum and the Purchase Agreement, do not require registration under the
Securities Act, and prior to the consummation of the Exchange Offer or the
effectiveness of the Shelf Registration Statement (as defined in the
Registration Rights Agreement), the Indenture does not require qualifications
under the TIA, it being understood that such counsel expresses no opinion as to
any subsequent resale of any Note.

                                       B-2
<PAGE>

                                                                      Schedule I

<Table>
<Caption>
Initial Purchaser                               Principal Amount Purchased
-----------------                               --------------------------
<S>                                             <C>
UBS Warburg LLC...............................         $105,000,000
J.P. Morgan Securities Inc....................         $105,000,000
ABN AMRO Incorporated.........................         $ 12,857,143
BMO Nesbitt Burn Corp.........................         $ 12,857,143
BNY Capital Markets, Inc......................         $ 12,857,143
Mizuho International plc......................         $ 12,857,143
The Royal Bank of Scotland plc................         $ 12,857,143
SG Cowen Securities Corporation...............         $ 12,857,143
Tokyo-Mitsubishi International plc............         $ 12,857,142

                                                       $300,000,000
                                                       ============
</Table>

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