Document:

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                                                                    EXHIBIT 10.8

                                                                [Execution Copy]

                                    GUARANTY

        This Guaranty dated as of July 31, 2002 ("Guaranty") is by Williams Gas
Pipeline Company, L.L.C. ("Guarantor"), in favor of the Financial Institutions
(as defined below). Capitalized terms used in this Guaranty but not defined
herein shall have the meanings set forth for such terms in the Credit Agreement
dated as of July 31, 2002 (the "New Credit Agreement"), among The Williams
Companies, Inc., a Delaware corporation (the "Company"), and the banks named
therein.

                                  INTRODUCTION

    A. The Company and/or its Subsidiaries (i) have entered into certain
financing transactions with and (ii) prior to the date hereof, have caused
certain other existing letters of credit to be issued by, certain agents,
lenders and financial institutions (such agents, lenders and financial
institutions collectively, the "Financial Institutions"). Such financing
transactions, including those entered into in connection with the New Credit
Agreement, and the existing letters of credit are documented by certain credit,
security, and letter of credit documents, all as more fully set forth on
Schedule I attached hereto (collectively, as the same may be amended and
modified from time to time, the "Credit Documents"). "Borrowers" as used herein
shall mean the borrowers under any one or more of the Credit Documents.

    B. It is a condition to certain transactions under the Credit Documents,
that the Guarantor shall have executed and delivered this Guaranty.

    C. The Company is the principal financing entity for all capital
requirements of some of its Subsidiaries, and from time to time the Company has
made capital contributions and advances to the Guarantor. The Guarantor is a
wholly owned Subsidiary of the Company and will derive substantial direct or
indirect benefit from the transactions contemplated by the Credit Documents.

Therefore, in order to induce the Financial Institutions to enter into and/or
continue certain financing transactions and letters of credit described in the
Credit Documents, the Guarantor hereby agrees for the ratable benefit of the
Financial Institutions as follows:

Section 1. Guaranty. Guarantor hereby unconditionally and irrevocably guarantees
the punctual payment when due, whether at stated maturity, by acceleration or
otherwise, of the obligations and indebtedness of the Company and the other
Borrowers under the Credit Documents (such obligations being referred to herein
as the "Guaranteed Obligations"); provided that Guaranteed Obligations shall not
include any increases which occur after the date hereof in the principal amount
of the obligations under the Credit Documents (other than increases in the

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principal amount of such obligations that are provided for as of the date of the
execution of this Agreement but not yet funded) and/or the commitments to
advance funds or letters of credit thereunder. Without limiting the generality
of the foregoing, Guarantor's liability shall extend to all amounts which
constitute part of the Guaranteed Obligations even if such Guaranteed
Obligations are declared unenforceable or not allowable in a bankruptcy,
reorganization, or similar proceeding involving any Borrowers, or any guarantor
of any portion of the foregoing Guaranteed Obligations (collectively such
guarantors together with the Guarantor and the Borrowers are referred to herein
as the "Obligors"). This Guaranty is a guarantee of payment, not of collection,
and Guarantor is primarily liable for the payment of the Guaranteed Obligations.

Section 2. Limit of Liability. The liabilities and obligations of the Guarantor
hereunder shall be limited to an aggregate amount equal to the largest amount
that would not render such Guarantor's obligations hereunder subject to
avoidance under Section 548 of the United States Bankruptcy Code or any
comparable provisions of any applicable state law.

Section 3. Guaranty Absolute. Guarantor guarantees that the Guaranteed
Obligations will be paid strictly in accordance with the Credit Documents,
regardless of any law, regulation, or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of any Financial
Institution with respect thereto. The obligations of Guarantor under this
Guaranty are independent of the Guaranteed Obligations in each and every
particular, and a separate action or actions may be brought and prosecuted
against any other Obligor, or any other Person regardless of whether any other
Obligor or any other Person is joined in any such action or actions. The
liability of Guarantor under this Guaranty shall be absolute and unconditional
irrespective of:

        (a) The lack of validity or unenforceability of the Guaranteed
Obligations or any Credit Document (other than this Guaranty against the
Guarantor) for any reason whatsoever, including that the act of creating the
Guaranteed Obligations is ultra vires, that the officers or representatives
executing the documents creating the Guaranteed Obligations exceeded their
authority, that the Guaranteed Obligations violate usury or other laws, or that
any Obligor has defenses to the payment of the Guaranteed Obligations, including
breach of warranty, statute of frauds, bankruptcy, statute of limitations,
lender liability, or accord and satisfaction;

        (b) Any change in the time, manner, or place of payment of, or in any
term of, any of the Guaranteed Obligations, any increase, reduction, extension,
or rearrangement of the Guaranteed Obligations, any amendment, supplement, or
other modification of the Credit Documents, or any waiver or consent granted
under the Credit Documents, including waivers of the payment and performance of
the Guaranteed Obligations;

        (c) Any release, exchange, subordination, waste, or other impairment
(including negligent impairment) of any collateral securing payment of the
Guaranteed Obligations; the failure of any Financial Institution or any other
person to exercise diligence or reasonable care in the preservation, protection,
enforcement, sale, or other handling of the collateral; the fact that any
security interest, lien, or assignment related to any collateral for the
Guaranteed Obligations

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shall not be properly perfected, or shall prove to be unenforceable or
subordinate to any other security interest, lien, or assignment;

        (d) Any full or partial release of any Obligor (other than the full or
partial release of the Guarantor);

        (e) The failure to apply or the manner of applying collateral or
payments of the proceeds of collateral against the Guaranteed Obligations;

        (f) Any change in the organization or structure of any Obligor; any
change in the shareholders, directors, or officers of any Obligor; or the
insolvency, bankruptcy, liquidation, or dissolution of any Obligor or any
defense that may arise in connection with or as a result of any such insolvency,
bankruptcy, liquidator or dissolution;

        (g) The failure to give notice of any extension of credit made by any
Financial Institution to any Obligor, notice of acceptance of this Guaranty,
notice of any amendment, supplement, or other modification of any Credit
Document, notice of the execution of any document or agreement creating new
Guaranteed Obligations, notice of any default or event of default, however
denominated, under the Credit Documents, notice of intent to demand, notice of
demand, notice of presentment for payment, notice of nonpayment, notice of
intent to protest, notice of protest, notice of grace, notice of dishonor,
notice of intent to accelerate, notice of acceleration, notice of bringing of
suit, notice of any Financial Institution's transfer of the Guaranteed
Obligations, notice of the financial condition of or other circumstances
regarding any Obligor, or any other notice of any kind relating to the
Guaranteed Obligations;

        (h) Any payment or grant of collateral by any Obligor to any Financial
Institution being held to constitute a preference under bankruptcy laws, or for
any reason any Financial Institution is required to refund such payment or
release such collateral;

        (i) Any other action taken or omitted which affects the Guaranteed
Obligations, whether or not such action or omission prejudices the Guarantor or
increases the likelihood that the Guarantor will be required to pay the
Guaranteed Obligations pursuant to the terms hereof;

        (j) The fact that all or any of the Guaranteed Obligations cease to
exist by operation of law, including, without limitation, by way of discharge,
limitation or tolling thereof under applicable bankruptcy laws; and

        (k) Any other circumstances which might otherwise constitute a defense
available to, or a discharge of any Obligor (other than the discharge of the
Guarantor).

Section 4. Financial Institutions' Rights and Certain Waivers.

        4.01. Notice and Other Remedies. Guarantor hereby waives promptness,
diligence, notice of acceptance, notice of acceleration, notice of intent to
accelerate, and any other notice with respect to any of the Guaranteed
Obligations and this Guaranty and any requirement that

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any Financial Institution protect, secure, perfect or insure any security
interest or other Lien or any property subject thereto or exhaust any right to
take any action against any Obligor or any other Person or any collateral.

        4.02. Waiver of Subrogation and Contribution. (a) Until such time as the
Guaranteed Obligations are irrevocably paid in full, Guarantor hereby
irrevocably waives any claim or other rights which it may acquire against any
Obligor that arise from the Guarantor's Guaranteed Obligations under this
Guaranty or any other Credit Document, including, without limitation, any right
of subrogation (including, without limitation, any statutory rights of
subrogation under Section 509 of the Bankruptcy Code, 11 U.S.C. Section 509),
reimbursement, exoneration, contribution, indemnification, or any right to
participate in any claim or remedy of any Financial Institution against any
Obligor, or any collateral which any Financial Institution now has or acquires.
If any amount shall be paid to Guarantor in violation of the preceding sentence
and the Guaranteed Obligations shall not have been paid in full, such amount
shall be held in trust for the benefit of the Financial Institutions, and shall
promptly be paid to the Financial Institutions to be applied to the Guaranteed
Obligations, whether matured or unmatured. Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements
contemplated by the Credit Documents and that the waiver set forth in this
Section 4.02(a) is knowingly made in contemplation of such benefits.

        (b) Guarantor agrees that, to the extent that any Borrower makes
payments to any Financial Institution, or any Financial Institution receives any
proceeds of collateral, and such payments or proceeds or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside,
or otherwise required to be repaid, then to the extent of such repayment the
Guaranteed Obligations shall be reinstated and continued in full force and
effect as of the date such initial payment or collection of proceeds occurred.
GUARANTOR SHALL INDEMNIFY EACH FINANCIAL INSTITUTION AND EACH AFFILIATE THEREOF
AND THEIR RESPECTIVE DIRECTORS, OFFICERS AND EMPLOYEES FROM, AND DISCHARGE,
RELEASE, AND HOLD EACH OF THEM HARMLESS AGAINST, ANY AND ALL ACTUAL LOSSES,
LIABILITIES, GUARANTEED OBLIGATIONS, PENALTIES, ACTIONS, JUDGMENTS, SUITS,
COSTS, DISBURSEMENTS, CLAIMS OR DAMAGES TO WHICH ANY OF THEM MAY BECOME SUBJECT,
INSOFAR AS SUCH LOSSES, LIABILITIES, GUARANTEED OBLIGATIONS, PENALTIES, ACTIONS,
JUDGMENTS, SUITS, COSTS, DISBURSEMENTS, CLAIMS OR DAMAGES ARISE OUT OF OR RESULT
FROM (I) ANY ACTUAL OR PROPOSED USE BY ANY BORROWER, OR ANY AFFILIATE OF ANY
BORROWER OF THE PROCEEDS OF ANY ADVANCE, (II) ANY BREACH BY GUARANTOR OF ANY
PROVISION OF THIS GUARANTY OR ANY OTHER CREDIT DOCUMENT, (III) ANY
INVESTIGATION, LITIGATION OR OTHER PROCEEDING (INCLUDING ANY THREATENED
INVESTIGATION OR PROCEEDING) RELATING TO THE FOREGOING, OR (IV) ANY
ENVIRONMENTAL CLAIM OR REQUIREMENT OF ENVIRONMENTAL LAWS CONCERNING OR RELATING
TO THE PRESENT OR PREVIOUSLY-OWNED OR OPERATED PROPERTIES, OR THE OPERATIONS OR
BUSINESS, OF ANY OBLIGOR, AND GUARANTOR SHALL REIMBURSE EACH FINANCIAL
INSTITUTION, AND EACH AFFILIATE THEREOF AND THEIR RESPECTIVE DIRECTORS, OFFICERS
AND EMPLOYEES, UPON DEMAND FOR ANY REASONABLE OUT-OF-POCKET EXPENSES (INCLUDING
LEGAL FEES) INCURRED IN CONNECTION WITH ANY SUCH INVESTIGATION, LITIGATION OR
OTHER PROCEEDING; AND EXPRESSLY INCLUDING ANY SUCH LOSSES, LIABILITIES,
GUARANTEED OBLIGATIONS, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS,
DISBURSEMENTS, CLAIMS, DAMAGES, OR EXPENSE INCURRED BY REASON OF

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THE PERSON BEING INDEMNIFIED'S OWN NEGLIGENCE, BUT EXCLUDING ANY SUCH LOSSES,
LIABILITIES, GUARANTEED OBLIGATIONS, PENALTIES, ACTIONS, JUDGMENTS, SUITS,
COSTS, DISBURSEMENTS, CLAIMS, DAMAGES OR EXPENSES INCURRED BY REASON OF THE
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE PERSON TO BE INDEMNIFIED.

         4.03. Modifications and Amendment to the Credit Documents. As provided
in Section 1 above, certain increases in the principal indebtedness outstanding
under the Credit Documents shall not constitute Guaranteed Obligations. Except
as to the foregoing, the parties to the Credit Documents shall have the right to
amend or modify such Credit Agreements without affecting the rights provided for
in this Guaranty.

Section 5. Representations and Warranties. Guarantor hereby represents and
warrants as follows:

        (a) Business Existence. Guarantor is duly organized, validly existing,
and in good standing under the laws of the jurisdiction of its organization and
in good standing and qualified to do business in each jurisdiction where its
ownership or lease of property or conduct of its business requires such
qualification and where a failure to be qualified could reasonably be expected
to cause a material adverse effect.

        (b) Power. The execution, delivery, and performance by Guarantor of this
Guaranty and the other Credit Documents to which it is a party and the
consummation of the transactions contemplated hereby and thereby (a) are within
Guarantor's powers, (b) have been duly authorized by all necessary action, (c)
do not contravene (i) Guarantor's organizational and constitutional documents or
(ii) any law or any contractual restriction binding on or affecting Guarantor or
its property, and (d) will not result in or require the creation or imposition
of any Lien prohibited by the Credit Documents.

        (c) Authorization and Approvals. No authorization or approval or other
action by, and no notice to or filing with, any Governmental Authority is
required for the due execution, delivery and performance by the Guarantor of
this Guaranty or the other Credit Documents to which Guarantor is a party or the
consummation of the transactions contemplated thereby.

        (d) Enforceable Obligations. This Guaranty and the other Credit
Documents to which Guarantor is a party have been duly executed and delivered by
Guarantor. Each Credit Document to which Guarantor is a party is the legal,
valid, and binding obligation of Guarantor and is enforceable against Guarantor
in accordance with its terms, except as such enforceability may be limited by
any applicable bankruptcy, insolvency, reorganization, moratorium, or similar
law affecting creditors' rights generally.

        (e) Solvency. After giving effect to this Guaranty, Guarantor,
individually and together with its Subsidiaries, is Solvent.

Section 6. Covenants.

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        (a) Guarantor will comply with all provisions of the Credit Documents
that are applicable to Guarantor including the provisions of Article V of the
New Credit Agreement.

        (b) In the event that a Financial Institution wishes to enforce the
guarantee contained in Section 1 hereof against Guarantor, it shall make written
demand for payment from Guarantor, provided that no such demand shall be
required if Guarantor is in bankruptcy, liquidation, or other insolvency
proceedings, and provided that failure by a Financial Institution to make such
demand shall not affect Guarantor's obligations under this Guaranty.

        (c) All indebtedness of Guarantor to another Obligor or any Borrower or
any Subsidiary of a Borrower shall be subordinated to all indebtedness of
Guarantor to any Financial Institution under any of the Credit Documents (the
"Senior Indebtedness"), as follows:

            (i) In the event of any insolvency or bankruptcy proceedings, or any
        receivership liquidation, reorganization, or other similar proceedings
        in connection therewith, relative to Guarantor, or to its property, or
        in the event of any proceedings for voluntary liquidation, dissolution,
        or other winding up of Guarantor, whether or not involving insolvency or
        bankruptcy, then the holders of the Senior Indebtedness shall be
        entitled to receive payment in full of all Senior Indebtedness before
        any Obligor or any Subsidiary of a Borrower shall receive any payment on
        account of principal or interest due such Person from Guarantor;

            (ii) After the occurrence and during the continuance of any default
        or event of default, however denominated, under any Credit Document (an
        "Event of Default"), Guarantor shall not exercise or attempt to exercise
        any right of offset or counterclaim in respect of any of its obligations
        to any other Obligor or any Subsidiary of a Borrower if the effect
        thereof shall be to reduce the amount of any payment to which the
        holders of Senior Indebtedness would be entitled in the absence of such
        offset or counterclaim; and if and to the extent that, notwithstanding
        the foregoing, Guarantor is required by any mandatory provisions of law
        to exercise any such right of offset or counterclaim, each reduction of
        the amount owing on the account of the principal of or premium (if any)
        or interest owed to any Obligor or any Subsidiary of a Borrower by
        reason of such offset or counterclaim shall be deemed to be a payment by
        Guarantor in a like amount in respect of such amounts which clause (iv)
        below shall apply;

            (iii) Following the occurrence and during the continuance of any
        Event of Default, (A) payment of the principal or interest upon any
        indebtedness owed to any Obligor or any Subsidiary of a Borrower shall
        not be made thereunder until payment in full of all Senior Indebtedness
        has been made and (B) the holders of the Senior Indebtedness shall be
        entitled to receive payment in full of all Senior Indebtedness prior to
        the entitlement of any Obligor or any Subsidiary of a Borrower to
        receive any payment of the principal or interest (except for payments
        which have been made prior to the occurrence of such event of default);

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            (iv) If, notwithstanding the provisions of the foregoing
        subparagraphs (i) through (iii), any payment or distribution on any
        indebtedness shall be received by Guarantor or any Obligor or any
        Subsidiary of a Borrower while an Event of Default exists and before the
        holders of the Senior Indebtedness shall have received payment in full
        on all Senior Indebtedness, such payment or distribution shall be (and
        shall be deemed to be) held in trust for the benefit of, and shall be
        paid over or delivered or transferred to, the holders of the Senior
        Indebtedness for application to the payment of all Senior Indebtedness
        held by such holder to the extent necessary to satisfy such Senior
        Indebtedness; and

            (v) No present or future holder of Senior Indebtedness shall be
        prejudiced in its right to enforce subordination of any Obligor or any
        Subsidiary of a Borrower by any act or failure to act on the part of
        Guarantor whether or not such act or failure shall give rise to any
        right of rescission or other claim or cause of action on the part of
        Guarantor or any Borrower or any Subsidiary of a Borrower. The
        provisions of the foregoing paragraphs with respect to subordination are
        solely for the purpose of defining the relative rights of the holders of
        Senior Indebtedness on the one hand, and any Obligor or any Subsidiary
        of a Borrower on the other hand, and none of such provisions shall
        impair, as between Guarantor and any Obligor or any Subsidiary of a
        Borrower, the obligation of Guarantor, which is unconditional and
        absolute, to pay to any Obligor or any Subsidiary of a Borrower the
        principal and interest of any indebtedness in accordance with its terms,
        nor shall anything in such provisions prevent any other Obligor or any
        Subsidiary of a Borrower from exercising all remedies otherwise
        permitted by applicable law or hereunder upon default hereunder, subject
        to the rights of holders of Senior Indebtedness under such provisions.

        (d) The Guarantor will not create, assume, incur or suffer to exist, or
permit any of its Subsidiaries to create, assume, incur or suffer to exist, any
Lien on or in respect of any of its property, whether now owned or hereafter
acquired, or assign or otherwise convey, or permit any Subsidiary to assign or
otherwise convey, any right to receive income, in each case to secure or provide
for the payment of any Debt, trade payable or other obligation or liability of
any Person; provided, however, that notwithstanding the foregoing (i) Guarantor
may create, incur, assume or suffer to exist Permitted Liens except that
Guarantor may not create Liens permitted pursuant to paragraph (y) of Schedule
III to the New Credit Agreement and (ii) its Subsidiaries may create, incur,
assume or suffer to exist Permitted Liens.

        (e) The Guarantor will not create, incur, assume or suffer to exist, or
permit any of its Subsidiaries to create, incur, assume or suffer to exist, any
Debt, except that Guarantor and its Subsidiaries may create, incur, assume and
suffer to exist Debt to the extent permitted by the Credit Documents.

        (f) The Guarantor will not create, incur, assume or suffer to exist any
obligation or liability other than this Guaranty and other obligations not
exceeding $100,000 in the aggregate.

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        (g) The Guarantor will at times maintain a Consolidated Tangible Net
Worth greater than $3,250,000,000.00.

        (h) The Guarantor will not sell, issue or otherwise dispose of, or
create, assume, incur of suffer to exist any Lien on or in respect of, or permit
any of its Subsidiaries to sell, issue or otherwise dispose of or create,
assume, incur or suffer to exist any Lien on or in respect of, any Equity
Interests or any direct or indirect interest in any Equity Interests in any
Important Subsidiary, as used herein "Important Subsidiary" means (i) any
Subsidiary of the Guarantor with assets having a book value of $1,000,000,000 or
more, (ii) any Subsidiary of the Guarantor that itself (on an unconsolidated,
stand alone basis) owns in excess of 5% of the book value of the Consolidated
Assets of the Guarantor and its Consolidated Subsidiaries, and (iii) each of
TGPL, TGT, and NWP. "TGPL", "TGT", and "NWP" are used herein as defined in the
Multiyear Williams Credit Agreement.

        (i) The Guarantor will not make or permit to remain outstanding, or
allow any of its Subsidiaries to make or permit to remain outstanding, any loan
or advance to, or own, purchase or acquire any obligations or debt or equity
securities of, any Subsidiary of the Company, except that the Guarantor may make
and permit to remain outstanding loans and advances to, and own, purchase and
acquire obligations and securities of any of its Subsidiaries so long as the
proceeds thereof are used only by such Subsidiary in the ordinary course of its
business consistent with past practices.

        (j) Guarantor shall timely comply with the same reporting requirements
imposed on the Borrower pursuant to Section 5.1(b) of the New Credit Agreement.
Further, not more than 60 days (or 105 days in the case of the last fiscal
quarter of a fiscal year of the Guarantor) after the end of each fiscal quarter
of the Guarantor, the Guarantor shall deliver a certificate of an authorized
financial officer of the Guarantor stating that Guarantor is in compliance with
the terms of Section 6(g) above. All of the foregoing information shall be
delivered to each of the Financial Institutions.

Section 7. [Intentionally Deleted].

Section 8. Miscellaneous.

        8.01. Amendments, Etc. Any amendment or waiver to this Guaranty shall be
effective only if approved by Financial Institutions holding at least 51% of the
principal amount of the Guaranteed Obligations at the time thereof and only in
the specific instance and for the specific purpose for which given. Provided,
however, that any amendment or waiver releasing any Guarantor from any liability
hereunder shall require the unanimous consent of all Financial Institutions and
be effective only in the specific instance and for the specific purpose for
which given.

        8.02. Addresses for Notices. All notices and other communications to
Guarantor shall be delivered to the address set forth beneath its signature on
the signature page hereto, or to such other address as shall be designated by
the Guarantor by written notice to all of the Financial Institutions. All
notices and other communications provided for under this Guaranty shall be in
writing (including telecopy communication), shall be mailed, telecopied, or
delivered, and shall, when mailed or telecopied, be effective when received in
the mail or sent by telecopier.

        8.03. No Waiver; Remedies. No failure on the part of any Financial
Institution to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right hereunder preclude any other or further exercise

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thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

        8.04. Right of Set-Off. Upon the occurrence and during the continuance
of any default or event of default however described under a Credit Document,
each Financial Institution party to such Credit Document is hereby authorized at
any time, to the fullest extent permitted by law, to set off and apply any
deposits (general or special, time or demand, provisional or final) and other
indebtedness owing by such Financial Institution to the accounts of the
Guarantor against any and all of the obligations of the Guarantor under this
Guaranty, irrespective of whether or not such Financial Institution shall have
made any demand under this Guaranty and although such obligations may be
contingent and unmatured. Each Financial Institution agrees promptly to notify
the Guarantor after any such set-off and application made by such Financial
Institution provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of the Financial
Institutions under this Section 8.04 are in addition to other rights and
remedies (including, without limitation, other rights of set-off) which the
Financial Institutions may have.

        8.05. Continuing Guaranty; Assignments under Credit Documents. This
Guaranty is a continuing guaranty and shall (a) remain in full force and effect
until the indefeasible payment in full of the Guaranteed Obligations and all
other amounts payable under this Guaranty, (b) be binding upon Guarantor and its
respective successors and assigns, (c) inure to the benefit of, and be
enforceable by, each of the Financial Institutions and their respective
successors, transferees and assigns, and (d) not be terminated by Guarantor or
any other Person. Without limiting the generality of the foregoing clause (c),
any Financial Institution may assign or otherwise transfer all or any portion of
its rights and Guaranteed Obligations and the assignee shall thereupon become
vested with all the benefits in respect thereof granted to such Financial
Institution herein or otherwise. Upon the indefeasible payment in full and
termination of the Guaranteed Obligations, each guaranty granted hereby shall
terminate and all rights hereunder shall revert to the Guarantor to the extent
such rights have not been applied pursuant to the terms hereof. Upon any such
termination, each Financial Institution will, at Guarantor's expense, execute
and deliver to Guarantor such documents as Guarantor shall reasonably request
and take any other actions reasonably requested to evidence or effect such
termination. This Guaranty is not assignable by Guarantor without the written
consent of each Financial Institution.

        8.06 Incorporated Definitions. All defined terms that are incorporated
from other agreements into this Guaranty by reference shall have the meanings
assigned to such terms as of the date hereof but shall not be modified by any
subsequent amendment or modification that takes place after the date hereof
unless consented to by the parties hereto.

        8.07. Governing Law; Submission to Jurisdiction; Suits and Claims.

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        (a) This Guaranty shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York, except to the extent
provided in Section 8.07(b) hereof and to the extent that the federal laws of
the United States of America may otherwise apply.

        (b) Notwithstanding anything in Section 8.07(a) hereof to the contrary,
nothing in this Guaranty shall be deemed to constitute a waiver of any rights
which any of the Financial Institutions may have under the National Bank Act or
other federal law, including without limitation the right to charge interest at
the rate permitted by the laws of the State where the applicable Financial
Institution is located.

        (c) ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, ANY CREDIT DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE FINANCIAL
INSTITUTIONS OR GUARANTOR IN CONNECTION HEREWITH OR THEREWITH MAY BE BROUGHT AND
MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER, THAT
ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER
PROPERTY MAY BE FOUND. GUARANTOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS
BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT
THE STATE OF NEW YORK AT THE ADDRESS SET FORTH BENEATH ITS SIGNATURE ON THE
SIGNATURE PAGE HERETO. GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER
MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT
REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM. TO THE EXTENT THAT GUARANTOR HAS OR HEREAFTER MAY ACQUIRE
ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER
THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF
EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, GUARANTOR HEREBY
IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN
RESPECT OF ITS OBLIGATIONS UNDER THIS GUARANTY AND THE CREDIT DOCUMENTS.

        (d) GUARANTOR AND THE FINANCIAL INSTITUTIONS HEREBY IRREVOCABLY WAIVE
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS GUARANTY OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

        (e) The provisions set forth in this Guaranty shall only be enforceable
by the Financial Institutions and their respective successors and assigns, and
no other Person shall have the right to bring any claim or cause of action based
on this Guaranty.

                                      -10-
<PAGE>

         Guarantor has caused this Guaranty to be duly executed as of the date
first above written.

                                        WILLIAMS GAS PIPELINE COMPANY, L.L.C.

                                        By:   /s/ James G. Ivey
                                             -----------------------------------
                                        Name:   James G. Ivey
                                               ---------------------------------
                                        Title:  Assistant Treasurer
                                                --------------------------------
                                                Address for Notices:
                                                One Williams Center
                                                Attn: Treasurer
                                                Tulsa, OK 74172

                                      -11-
<PAGE>

                                   SCHEDULE I
                                CREDIT DOCUMENTS

NEW CREDIT FACILITY:

Credit Agreement dated as of July 31, 2002 executed by The Williams Companies,
Inc., as borrower, Citicorp USA, Inc., as agent and collateral agent, Bank of
America N.A. as syndication agent, Citibank, N.A. and Bank of America N.A. as
issuing bank, Salomon Smith Barney Inc., as arranger, and the banks named
therein.

All documents, instruments, agreements, certificates and notices at any time
executed and/or delivered in connection with the foregoing.

PROGENY AGREEMENTS

$200,000,000 Parent Support Agreement dated as of December 23, 1998, made by The
Williams Companies, Inc. in favor of Castle Associates L. P. and Colchester LLC
and the other Indemnified Persons listed therein, as amended.

Amended and Restated Guarantee dated as of July 25, 2000, issued by The Williams
Companies, Inc. for the benefit of The Commonwealth Plan, Inc. and CBL Capital
Corporation, as amended. WFS-Pipeline Company, as lessee and Commonwealth, as
lessor entered into a Lease Agreement dated as of December 29, 1995.
WFS-Offshore Gathering Company, as lessee, and CBL, as lessor, entered into a
Lease Agreement dated December 29, 1995, as amended and restated.

$400,000,000 Term Loan Agreement dated as of April 7, 2000, among The Williams
Companies, Inc., as Borrower, and Credit Lyonnais New York Branch, as
Administrative Agent, and the Lenders named therein, as amended.

$192,570,931 aggregate Second Amended and Restated Participation Agreements (2
separate leases) dated as of January 28, 2002, among Williams Oil Gathering,
L.L.C. and Williams Field Services - Gulf Coast Company, L.P., as Lessees,
Williams Field Services Company, as Construction Agent, The Williams Companies,
Inc., as Guarantor, First Security Bank, N.A. as Certificate Trustee, Wells
Fargo Bank Nevada, N.A., as Collateral Agent, Bank of America, N.A., as
Administrative Agent and Administrator, and financial institutions named therein
as Certificate Holders, as amended.

$200,000,000 Term Loan Agreement dated as of January 29, 1999, among The
Williams Companies, Inc., as Borrower, and The Fuji Bank, Limited, as
Administrative Agent, and the Banks named therein, as amended.

$611,788,868 Joint Venture Sponsor Agreement dated as of December 28, 2000,
among The Williams Companies, Inc., as Sponsor and Williams Field Services
Company, in favor of Prairie Wolf Investors, Arctic Fox Assets, L.L.C., Williams
Energy (Canada), Inc. and the other

                                      -12-
<PAGE>

Indemnified Persons listed therein, as amended.

Letter of Credit and Reimbursement Agreement dated as of May 15, 1994, among
Tulsa Parking Authority, The Williams Companies, Inc., Bank of Oklahoma,
National Association, and Bank of America, N.A. (formerly Nationsbank of Texas,
N.A.), relative to Tulsa Parking Authority First Mortgage Revenue Bonds, as
amended.

$127,000,000 Master Agreement dated as of March 6, 2000, among The Williams
Companies, Inc., as Guarantor, Williams TravelCenters, Inc., as Lessee, Atlantic
Financial Group, Ltd., as Lessor, SunTrust Bank, as Agent, and the Lenders named
therein, as amended.

$100,000,000 PPH Sponsor Agreement dated as of December 31, 2001, by The
Williams Companies, Inc., as Sponsor, in favor of Piceance Production Holdings
LLC, Plowshare Investors LLC, and other Indemnified Persons listed in the
agreement, as amended.

All documents, instruments, agreements, certificates and notices at any time
executed and/or delivered in connection with any of the foregoing.

LEGACY L/CS

See Attachment 1 attached hereto

All documents, instruments, agreements, certificates and notices at any time
executed and/or delivered in connection with the letters of credit described on
Attachment 1.

                                      -13-
<PAGE>

                                  ATTACHMENT 1

                          OUTSTANDING LETTERS OF CREDIT

WILLIAMS ENERGY MARKETING & TRADING EUROPE LIMITED
AS OF 7-31-02

<Table>
<Caption>
-----------------------------------------------------------------------------------------------------------------------------
LETTER OF                          ACCOUNT
CREDIT #                            PARTY                              NOTE                   BENEFICIARY
---------                          -------                             ----                   -----------
<S>                                <C>                                 <C>       <C>
KBC - CASH COLLATERALISED BY E. 1 MILLION CASH ON JULY 31ST
                Williams Energy Marketing & Trading Europe Limited               The Belgian State
                Williams Energy Marketing & Trading Europe Limited               The Belgian State

RBS - RCF
G259106         Williams Energy Marketing & Trading Europe Limited               RWE NET AG
G260899         Williams Energy Marketing & Trading Europe Limited               LPX LEIPZIG POWER EXCHANGE GMBH
G261340         Williams Energy Marketing & Trading Europe Limited               RESEAU DE TRANSPORT D'ELECTRICITE
G261666         Williams Energy Marketing & Trading Europe Limited               RESEAU DE TRANSPORT D'ELECTRICITE
G262939         Williams Energy Marketing & Trading Europe Limited               ELIA NV
G263006         Williams Energy Marketing & Trading Europe Limited               ELTRA
G263181         Williams Energy Marketing & Trading Europe Limited               TENNE T BV
G263374         Williams Energy Marketing & Trading Europe Limited               EDF SERVICE NATIONAL
G264373         Williams Energy Marketing & Trading Europe Limited               ELEXON CLEAR LIMITED
G264757         Williams Energy Marketing & Trading Europe Limited               SHELL INTERNATIONAL
G264860         Williams Energy Marketing & Trading Europe Limited               NATIONAL GRID COMPANY PLC
G265433         Williams Energy Marketing & Trading Europe Limited               ARTHUR ANDERSEN
G265560         Williams Energy Marketing & Trading Europe Limited               APCS Power Clearing and Settlement AG
G265977         Williams Energy Marketing & Trading Europe Limited               ENMO LTD
G266468         Williams Petroleos Espana SLU                                    Vitol Espana SA
G266531         Williams Energy Marketing & Trading Europe Limited               Texaco Limited
G266528         Williams Energy Marketing & Trading Europe Limited               Federal Tax Administration Dept for VAT
G266763         Williams Energy Marketing & Trading Europe Limited               Texaco Limited

RBS - BONDING LINE
G265142         Williams Petroleos Espana SLU                                    TERMINALES PORTUARIAS
G265147         Williams Petroleos Espana SLU                                    DECAL ESPANA S.A.
G265151         Williams Petroleos Espana SLU                                    EUROENERGO ESPANA S.L.
G266709         Williams Energy Marketing & Trading Europe Limited               Sibneft Oil Trade Company Ltd

                TOTAL LC'S OUTSTANDING EM&T EUROPE LIMITED

<Caption>

---------------------------------------------------------------------------------------------
LETTER OF                                                                           EXPIRY
CREDIT #              AMOUNT                  CONVERSION     DOLLARS      DATED      DATE
---------             ------                  ----------    ----------    -----    ----------
<S>                   <C>                     <C>           <C>           <C>      <C>
KBC - CASH COLLATERALISED BY E. MILLION CASH ON JULY 31ST
                       E.2,144,000                  1.02    $2,099,902             No Fxd Exp
                       E.4,037,000                  1.02    $3,953,967             No Fxd Exp

RBS - RCF
G259106                  E.400,000                  1.02      $391,773             No Fxd Exp
G260899                E.1,100,000                  1.02    $1,077,375             No Fxd Exp
G261340                  E.170,000                  1.02      $166,503             11/8/2002
G261666                  E.170,000                  1.02      $166,503             3/31/2003
G262939                  E.300,000                  1.02      $293,830             2/28/2003
G263006                kr2,000,000                  7.62      $262,330             3/31/2003
G263181                  E.250,000                  1.02      $244,858             No Fxd Exp
G263374                  E.550,000                  1.02      $538,688             7/21/2002
G264373                  L.100,000                  0.64      $155,743             3/25/2007
G264757                   $250,000                  1.00      $250,000             10/15/2002
G264860                   L.20,000                  0.64       $31,149             1/31/2003
G265433                   E.39,580                  1.02       $38,766             No Fxd Exp
G265560                  E.600,000                  1.02      $587,659             No Fxd Exp
G265977                  L.500,000                  0.64      $778,715             6/11/2003
G266468                 $1,000,000                  1.00    $1,000,000             8/12/2002
G266531                 $3,360,000                  1.00    $3,360,000             8/9/2002
G266528                 CHF250,000                  1.50      $167,133             Open Ended
G266763                 $3,520,000                  1.00    $3,520,000             8/12/2002

RBS - BONDING LINE
G265142             E.9,992,442.00                  1.02    $9,786,917              10/31/2002
G265147             E.5,538,378.00                  1.02    $5,424,464              10/31/2002
G265151             E.3,029,742.00                  1.02    $2,967,426              10/31/2002
G266709              $6,000,000.00                  1.00    $6,000,000               8/12/2002

                     -----------------                     -----------
                           N/A                             $43,263,700
                     =================                     ===========
</Table>

                                      -14-<PAGE>
                                                                    EXHIBIT 10.9
                                                                [Execution Copy]

                           COLLATERAL TRUST AGREEMENT

                                      AMONG

                        THE WILLIAMS COMPANIES, INC., AND

                          CERTAIN OF ITS SUBSIDIARIES,

                                   AS DEBTORS,

                                       AND

                                 CITIBANK, N.A.,

                              AS COLLATERAL TRUSTEE

                            DATED AS OF JULY 31, 2002

<PAGE>

         COLLATERAL TRUST AGREEMENT, dated as of July 31, 2002 (this
"Agreement"), among THE WILLIAMS COMPANIES, INC., a Delaware corporation (the
"Company"), the undersigned subsidiaries of the Company (the "Subsidiaries" and
collectively with the Company, the "Debtors"), and CITIBANK, N.A., as Collateral
Trustee (the "Collateral Trustee"):

                                   ARTICLE 1.
                                   DEFINITIONS

         1.1 Certain Defined Terms. As used in this Agreement, the following
terms shall have the following meanings (such definitions to be equally
applicable to the singular and plural forms thereof):

         Bankruptcy Code: shall mean Title 11 of the United States Code, as
         amended from time to time.

         Class of Master Debt: shall mean any related class of Master Debt under
         any Master Debt Agreement. All loans outstanding under any syndicated
         bank credit agreement or bond indenture shall constitute one Class of
         Master Debt.

         Collateral: shall mean all property of any kind or description on which
         the Collateral Trustee has, or purports to have, a Lien or other
         interest under any Security Document, including Collateral Account
         Collateral and all Proceeds of other Collateral.

         Collateral Account: shall have the meaning specified in Section 4.4(a).

         Collateral Account Collateral: shall have the meaning specified in
         Section 4.4(a).

         Collateral Trustee Obligations: shall mean all amounts payable by the
         Debtors to the Collateral Trustee under the terms of the Security
         Documents (including indemnification and reimbursement obligations and
         obligations for fees of the Collateral Trustee).

         Distribution Date: shall mean each date for the distribution of amounts
         on deposit in the Collateral Account.

         Event of Default: shall mean any default or event of default, however
         denominated, under any Master Debt Agreement.

         Guaranteed Obligations and Bonds: shall mean the Master Debt as defined
         herein.

                                      -2-
<PAGE>

         Lien: shall mean any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, encumbrance, lien (statutory or other), or
         preference, priority or other security agreement or preferential
         arrangement of any kind or nature whatsoever (including any conditional
         sale or other title retention agreement, any capital lease having
         substantially the same economic effect as any of the foregoing, and the
         filing of any financing statement under the UCC or comparable flaw of
         any jurisdiction in respect of any of the foregoing).

         Master Debt: shall mean the outstanding principal amount of
         indebtedness, reimbursement obligations for draws on letters of credit,
         and cash collateralization obligations for letters of credit under the
         Master Debt Agreements, all accrued but unpaid interest thereon under
         the Master Debt Agreements, all premium, if any, in connection
         therewith under the Master Debt Agreements, all fees in connection
         therewith under the Master Debt Agreements, and all other
         reimbursement, indemnification, and other payment obligations in
         connection therewith under the Master Debt Agreements; provided, that
         Master Debt shall exclude any type or amount of Master Debt (a) under
         any Master Debt Agreement that is expressly limited or excluded from
         being Master Debt in the description of such Master Debt Agreement on
         Schedule 1, (and without limiting the foregoing, the description of a
         Master Debt Agreement in Schedule 1 may limit the maximum amount of
         Master Debt thereunder or exclude any subfacilities thereunder as
         Master Debt) or (b) under any Master Debt Agreement following certain
         modifications to the extent set forth in Section 3.1.

         Master Debt Agreements: shall mean the credit agreements, loan
         agreements, securities purchase agreements, indentures, notes, bonds,
         and other agreements and instruments relating to Master Debt described
         on Schedule 1 as "Master Debt Agreements."

         Master Debt Outstanding: shall mean all principal obligations
         constituting Master Debt, plus all unreimbursed draws on letters of
         credit constituting Master Debt, plus all undrawn face amounts of
         letters of credit constituting Master Debt, in each case outstanding at
         any time.

         Notice of Event of Default: shall mean a written certification to the
         Collateral Trustee certifying that an Event of Default has occurred.

         Permitted Investment: shall mean (i) obligations of, or guaranteed as
         to interest and principal by, the United States of America or agencies
         thereof maturing not more than 90 days after such investment; (ii) open
         market commercial paper of any corporation incorporated under the laws
         of the United States of America or any State thereof and not an
         Affiliate of the Company, which paper is rated "P-1"

                                      -3-
<PAGE>

         or its equivalent by Moody's Investors Service or "A-1" or its
         equivalent by Standard & Poor's Ratings Group; (iii) banker's
         acceptances and certificates of deposit issued by any bank or trust
         company having capital, surplus and undivided profits of at least
         $500,000,000.00 whose long-term debt is rated "A" or better by Standard
         & Poor's Ratings Group and A2 or better by Moody's Investors Service
         and maturing within ninety (90) days of the acquisition thereof; and
         (iv) money market funds consisting solely (except that no more than 10%
         thereof may be held in cash) of obligations of the type described in
         clauses (i) through (iii) above and the shares of such money market
         funds can be converted to cash within 90 days.

         Person: shall mean a corporation, business trust, joint stock company,
         trust, joint venture, association, partnership, limited liability
         company, organization, business, individual, government or political
         subdivision thereof, governmental agency, or other entity of whatever
         nature.

         Principal Bank Facility: shall mean the Credit Agreement dated July 25,
         2000, provided to the Company and certain of its subsidiaries by The
         Chase Manhattan Bank and Commerzbank AG as Co-Syndication Agents,
         Credit Lyonnais New York Branch as Documentation Agent, Citibank, N.A.,
         as Agent, and Salomon Smith Barney, as Arranger, as further described
         in Schedule 1.

         Principal L/C Facility: shall mean the Credit Agreement more fully
         described in Paragraph 1 of Schedule 1.

         Proceeds: shall mean all "proceeds" as such term is defined in Section
         9-102 of the UCC.

         Release Notice: shall mean a written notice, signed by a Responsible
         Officer of the Company and the Debtors with interests in the Collateral
         to be released, that requests the release of Liens in favor of the
         Collateral Trustee in such Collateral and that (a) certifies to the
         Collateral Trustee that the release of such Collateral is permitted
         under the applicable terms of the Principal Bank Facility and of the
         Principal L/C Facility and has been consented to by the Required
         Decision Group, (b) describes to the Collateral Trustee the expected
         proceeds of such Collateral and the intended application thereof and
         that such application is in accordance with the applicable requirements
         of Section 2.04(c) of the Principal Bank Facility in effect on the date
         hereof and the applicable requirements of Section 5.2(e) of the
         Principal L/C Facility in effect on the date hereof, and (c) covenants
         to the Collateral Trustee that the proceeds of such Collateral shall be
         applied as described.

                                      -4-
<PAGE>

         Required Decision Group: shall mean, with respect to any determination,
         (a) at any time when the Principal Bank Facility or the Principal L/C
         Facility has outstanding Master Debt or commitments to provide Master
         Debt in effect, the Required Percentage for each such Class of Master
         Debt that satisfies those conditions, and (b) at any other time, the
         Required Majority.

         Required Majority: shall mean, with respect to any determination, a
         Class or group of Classes of Master Debt that (a) have the Required
         Percentage for each such Class of Master Debt agreeing upon such
         determination and (b) hold more than 50% of the aggregate amount of
         Master Debt Outstanding.

         Required Percentage: shall mean, with respect to any Class of Master
         Debt and with respect to any determination, the percentage or number of
         the holder or holders of such Class of Master Debt required to make
         such determination under the terms of the Master Debt Agreement under
         which such Class of Master Debt was issued (but if no such percentage
         or number is specified under the terms of such Master Debt Agreement,
         then the holder or holders of more than 50% of the Master Debt
         Outstanding with respect to such Class of Master Debt).

         Responsible Officer: shall mean, with respect to any Debtor, the chief
         executive officer, president, executive vice president, chief financial
         officer, treasurer, or secretary of the applicable Debtor.

         Secured Obligations: shall mean (a) all Collateral Trustee Obligations
         and (b) all Master Debt.

         Security Documents: shall mean:

                  (a) this Agreement.

                  (b) Security Agreement dated as of July 31, 2002, made by the
         Company and certain Subsidiaries in favor of the Collateral Trustee
         granting the Collateral Trustee a security interest in substantially
         all of the personal property of the Company and such Subsidiaries.

                  (c) Pledge Agreement dated as of July 31, 2002, made by the
         Company and certain Subsidiaries in favor of the Collateral Trustee
         granting the Collateral Trustee a security interest in the stock of
         certain of the subsidiaries of the Company and the Subsidiaries.

                                      -5-
<PAGE>

                  (d) all future deeds of trust, mortgages, security agreements,
         pledge agreements, and other security documents made by any Debtor in
         favor of the Collateral Trustee for the benefit of the holders of
         Secured Obligations.

                  (e) all present and future financing statements, recordings,
         certificates, documents, and other instruments evidencing or related to
         the foregoing.

         Trust Estate: shall mean all right, title, and interest of the Debtors
         in the Collateral granted to the Collateral Trustee by the Security
         Documents and all rights of the Collateral Trustee thereunder.

         UCC: shall mean the Uniform Commercial Code.

                                   ARTICLE 2.
                                COLLATERAL TRUST

         2.1 Creation of Collateral Trust. Each Debtor hereby grants the Trust
Estate to the Collateral Trustee in accordance with the terms of the Security
Documents for the benefit of the holders of the Secured Obligations as set forth
herein; provided that with respect to each Debtor the grant of the Trust Estate
is limited to the extent set forth in Section 2.2.

         2.2 Limitation of Grant. Notwithstanding any provision of the Security
Documents to the contrary, the grant of the Trust Estate made by each Debtor and
the obligations of such Debtor under the Security Documents are limited to an
aggregate transfer equal to the largest amount that would not render such
Debtor's grant and obligations under the Security Documents subject to avoidance
under Section 548 of the United States Bankruptcy Code or any comparable
provisions of any applicable state law.

         2.3 Possession and Use of Collateral. So long as no Event of Default
exists, each Debtor shall have the right to remain in possession of and retain
control of the Collateral (other than the Collateral Account Collateral and any
Collateral intended to be held by the Collateral Trustee at all times under the
Security Documents, such as capital stock) in accordance with the terms of the
Security Documents.

         2.4 Addition of Collateral to the Trust Estate. At any time and from
time to time, the Company or any other Debtor, as applicable, may enter into one
or more Security Documents, in form reasonably satisfactory to the Collateral
Trustee to: (a) add to the covenants of the Debtors for the benefit of the
holders of the Secured Obligations or to surrender any right or power herein
conferred upon the Debtors; (b) mortgage or pledge to the Collateral Trustee, or
grant a security interest in favor of the Collateral

                                      -6-
<PAGE>

Trustee in, any property or assets as additional security for the Secured
Obligations; or (c) cure any ambiguity, correct or supplement any provision in
any Security Document which may be defective or inconsistent with any other
provision herein or therein, or make any other provision with respect to matters
or questions arising under the Security Documents which shall not be
inconsistent with any provision thereof. The Company will deliver or cause to be
delivered to the Collateral Trustee, promptly upon the execution and delivery
thereof, executed counterparts of all Security Documents and all amendments and
supplements thereto. The Collateral Trustee shall keep all Security Documents at
the time held by it at the offices of the Collateral Trustee and shall permit
any holder of Secured Obligations or the representative thereof to inspect the
same upon reasonable request. The Collateral Trustee shall cooperate with the
Company and accept any additional collateral furnished from time to time
pursuant to any Security Document.

         2.5 Releases of Collateral. In connection with any proposed sale,
assignment, transfer, or other disposition of Collateral, the Company and the
Debtors with an interest in such Collateral may deliver a Release Notice to the
Collateral Trustee which the Collateral Trustee shall promptly distribute to the
holders of Secured Obligations under the Principal Bank Facility and the
Principal L/C Facility. If within 15 days after the receipt of such Release
Notice the Collateral Trustee shall not have received a certificate in writing
from any holder of Secured Obligations under the Principal Bank Facility or the
Principal L/C Facility stating that the release of such Collateral is improper
because (a) the release of such Collateral is not permitted under the applicable
terms of the Principal Bank Facility or the Principal L/C Facility or has not
been consented to by the Required Decision Group or (b) the intended application
of the proceeds of such Collateral is not in accordance with the applicable
requirements of Section 2.04(c) of the Principal Bank Facility in effect on the
date hereof or Section 5.2(e) of the Principal L/C Facility in effect on the
date hereof; then the Collateral Trustee shall, to the extent requested in the
Release Notice, release the Liens of the Collateral Trustee in such Collateral.
If the Collateral Trustee receives such a certification within such period, the
Liens will not be released and the Collateral Trustee will not take any actions
requested under the Release Notice until (i) such certificate shall be withdrawn
in writing by the holder of Secured Obligations which shall have delivered the
same to the Collateral Trustee or (ii) until the Collateral Trustee shall have
received a final order of a court of competent jurisdiction directing it to
release the Liens of the Collateral Trustee in such Collateral. Upon the
effectiveness of any Release Notice, the Collateral Trustee shall at the request
of the Company execute a partial release of Lien of the Security Documents and
such instruments, including UCC-3 amendments, as are necessary to partially
release any documents constituting public notice of the Security Documents and
the Liens granted thereunder and shall assign and transfer, or cause to be
assigned and transferred, and shall deliver, or cause to be delivered, to the
applicable Debtors, all property thereof

                                      -7-
<PAGE>

then held by the Collateral Trustee in which the Lien of the Collateral Trustee
has been released.

         2.6 Further Assurances. Each Debtor at its expense will execute,
acknowledge, and deliver all such agreements and instruments and take all such
action as the Collateral Trustee may reasonably request in order further to
effectuate the purposes of the Security Documents and to carry out the terms
thereof. Each Debtor hereby authorizes the filing by the Collateral Trustee of
financing statements or amendments relating to the security granted under the
Security Documents, including any financing statements "in lieu" of continuation
statements, terminations, continuations, assignments, or other amendments.

         2.7 Obligations Absolute.

             (a) The Security Documents may not be revoked by any Debtor and
shall continue to be effective with respect to Secured Obligations arising or
created after any attempted revocation by any Debtor.

             (b) Each Debtor agrees that it will perform its obligations under
the Security Documents strictly in accordance with the terms thereof regardless
of any law, regulation, or order now or hereafter in effect in any jurisdiction
affecting any of such terms or the rights of the Collateral Trustee or any
holders of Master Debt with respect thereto. The liability of each of the
Debtors under the Security Documents shall be absolute and unconditional
irrespective of:

                 (i) any lack of validity or enforceability of any Master Debt
     Agreement;

                 (ii) any change in the time, manner, or place of payment of, or
     in any other term of, all or any of the Secured Obligations or any other
     liabilities, or any other amendment or waiver of, or any consent to
     departure from, any Master Debt Agreement, including, without limitation,
     any increase in the Secured Obligations or any other liabilities resulting
     from the extension of additional credit or otherwise;

                 (iii) any taking, exchange, release, or non-perfection of any
     Collateral, or any taking, release, or amendment or waiver of, or consent
     to departure from, any Security Document for all or any of the Secured
     Obligations or any other liabilities;

                                      -8-
<PAGE>

                 (iv) any manner of application of Collateral or proceeds
     thereof, or of collections on account of any Security Document, to all or
     any of the Secured Obligations or any other liabilities, or any manner of
     sale or other disposition of any Collateral for all or any of the Secured
     Obligations or any other liabilities or of any other assets of the Debtors
     or any other Person;

                 (v) any liquidation, dissolution, or termination of existence
     of, or other change in, any Debtor or any other Person;

                 (vi) any bankruptcy, insolvency, receivership, or other
     proceeding involving any Debtor or any other Person or any defense that may
     arise in connection with or as a result of any such bankruptcy, insolvency,
     receivership, or other proceeding or otherwise; or

                 (vii) any other circumstances which might otherwise constitute
     a defense available to, or a discharge of, any Debtor or any other Person.

             (c) The Security Documents shall continue to be effective or be
reinstated, as the case may be, if any payment on the Secured Obligations must
be refunded for any reason including any bankruptcy proceeding. In the event
that the Collateral Trustee must refund any payment received against the Secured
Obligations, any prior release from the terms of the Security Documents given to
any Debtor by the Collateral Trustee shall be without effect, and the Security
Documents shall be reinstated in full force and effect.

         2.8 Limited Rights; Decisions by Certain Parties. Each holder of
Secured Obligations agrees that its rights to the benefits of the Trust Estate
and the Security Documents are limited to those rights established under the
terms of the Security Documents. Without limiting the foregoing, to the extent
that any determination may be made by the Required Decision Group, the Required
Majority, or any other holders of Secured Obligations under the terms of the
Security Documents that effect any other holders of Secured Obligations, the
makers of such determination may make such determination in the makers' own
interest, without any duty or liability to any other holder of Secured
Obligations.

         2.9 Termination of the Collateral Trust. When (a) the Principal Bank
Facility and the Principal L/C Facility no longer have outstanding Master Debt
or commitments to provide Master Debt in effect and (b) the Collateral Trustee
determines that the Debtors have no further obligations to the Collateral
Trustee under the Security Documents or that the surviving provisions thereof
will cover any such obligations to the satisfaction of the Collateral Trustee,
then the Collateral Trustee shall, at the request of the Company, terminate the
grant of the Trust Estate under the Security Documents and

                                      -9-
<PAGE>

the Security Documents (except to the extent the provisions thereof, including
indemnification provisions for the Collateral Trustee, survive termination),
execute releases of the Liens of the Security Documents, including UCC-3
amendments, as are necessary to release any documents constituting public notice
of the Security Documents and the Liens granted thereunder, and assign and
transfer, or cause to be assigned and transferred, and deliver, or cause to be
delivered, to the applicable Debtors, all property thereof then held by the
Collateral Trustee in which the Lien of the Collateral Trustee has been
released.

                                   ARTICLE 3.
                                   MASTER DEBT

         3.1 Master Debt; Modifications. On the date this Agreement, all Master
Debt is outstanding only under the Master Debt Agreements set forth in Schedule
1 and under the terms of such Master Debt Agreements in effect on the date
hereof. The Company may from time to time amend, waive, or otherwise modify the
terms of any Master Debt Agreement without further approval hereunder; provided
that this paragraph does not imply any waiver of any restriction on
modifications in any other agreement; and provided further that any modification
of any Master Debt Agreement that increases the principal amount thereof or the
commitments to advance funds or letters of credit thereunder, and is not
approved under Section 3.2 below, shall result in any funds advanced or letters
of credit issued under such Master Debt Agreement in each case in excess of the
prior principal amount or commitment limit, and other obligations thereunder
allocable thereto, not being Master Debt hereunder. For the avoidance of doubt,
additional fundings or letters of credit under commitments established by the
terms of Master Debt Agreements on the date when such Master Debt Agreements
became Master Debt Agreements hereunder or on the date when approved under
Section 3.2 are Master Debt hereunder.

                                      -10-
<PAGE>

         3.2 Additional Master Debt. From time to time the Company may request
additional obligations under additional Master Debt Agreements or increases of
the principal amount or commitments to advance funds or letters of credit under
existing Master Debt Agreements to become Master Debt under Master Debt
Agreements hereunder (such proposed additional Master Debt being "Additional
Master Debt"). Increases in commitments under existing Master Debt Agreements
shall be treated as Additional Master Debt, subject to approval as provided
below. The Company shall notify the Collateral Trustee and each holder of
Secured Obligations under the Principal Bank Facility and the Principal L/C
Facility in writing at least 20 days prior to the proposed effective date for
any such transaction. Additional Master Debt shall be designated as Master Debt
for purposes hereof only if the following conditions shall be fulfilled on or
prior to the date of the incurrence of any Additional Master Debt:

             (a) The Company shall have furnished to the Collateral Trustee and
each such holder of Secured Obligations: (i) a resolution of the Board of
Directors of the Company authorizing the issuance of the Additional Master Debt,
(ii) a certificate of a Responsible Officer of the Company certifying that all
conditions precedent provided herein for such Additional Master Debt to
constitute Master Debt have been complied with and demonstrating, in reasonable
detail, compliance with any restrictions on the incurrence (including securing)
of the Additional Master Debt by the Company under the terms of the Principal
Bank Facility and the Principal L/C Facility, (iii) a copy of the Master Debt
Agreement and related documents and agreements for such Additional Master Debt
and a proposed revised Schedule 1 to this Agreement reflecting such Additional
Master Debt and any restrictions thereon, and (iv) an opinion of counsel
relating to the issuance of such Additional Master Debt as Master Debt hereunder
and as to such related matters as any holder of Secured Obligations may
reasonably request; and

             (b) The Collateral Trustee shall not have received by the
expiration of the 20 days any objection from any such holder of Secured
Obligations that the designation of such Additional Master Debt as Master Debt
violates the terms of the Principal Bank Facility or the Principal L/C Facility
or if any such objection is received such objection is withdrawn or the
Collateral Trustee has received a final order of a court of competent
jurisdiction overriding such objection; and

             (c) The Collateral Trustee shall have received the approval of the
Required Decision Group for such Additional Master Debt.

Upon the designation of Additional Master Debt as Master Debt hereunder, the
Company will deliver to the Collateral Trustee a certificate of a Responsible
Officer of the Company certifying the date of the transaction, the revised
Schedule 1 to this Agreement reflecting such transaction, and that such Master
Debt is entitled to the benefits of this Agreement, and such Schedule shall be
so amended and such Additional Master Debt

                                      -11-
<PAGE>

shall become Master Debt hereunder. The Company will also deliver to the
Collateral Trustee promptly upon request similar certificates of a Responsible
Officer of the Company confirming such data as to all Master Debt entitled to
the benefits of this Agreement if there is a change in the identity of any
holder of Master Debt.

         3.3 Release of Master Debt. From time to time the Company may designate
indebtedness of the Company to be released as Master Debt hereunder (such
released Master Debt being the "Release Master Debt"). The Company shall notify
the Collateral Trustee, each holder of Secured Obligations under the Principal
Bank Facility and the Principal L/C Facility, and each holder of Release Master
Debt in writing at least 20 days prior to the proposed effective date for any
such transaction. Release Master Debt shall be released as Master Debt hereunder
only if the Collateral Trustee shall have received confirmation of no objection
from each holder of the Release Master Debt by the expiration of the 20 days or
if any such objection is received such objection is withdrawn or the Collateral
Trustee has received a final order of a court of competent jurisdiction
overriding such objection. Upon the release of Release Master Debt as Master
Debt hereunder, the Company will deliver to the Collateral Trustee a certificate
of a Responsible Officer of the Company certifying the date of the transaction,
a revised Schedule 1 to this Agreement reflecting such transaction, and that
such Release Master Debt is no longer entitled to the benefits of this
Agreement, and such Schedule shall be so amended and such Release Master Debt
shall cease to be Master Debt hereunder.

                                   ARTICLE 4.
                          ACTIONS REGARDING COLLATERAL

         4.1 Preservation and Maintenance of Collateral. The Collateral Trustee
may from time to time take action for the protection and enforcement of its
rights under the Security Documents and for the benefit of the holders of the
Secured Obligations. The Collateral Trustee shall perform such duties as are
specifically set forth in the Security Documents. As to any matters not
expressly provided for by the Security Documents, the Collateral Trustee shall
not be required to exercise any discretion or take any action, but shall be
required to act or to refrain from acting (and shall be fully protected in so
acting or refraining from acting) upon the instructions of the Required Decision
Group, and such instructions shall be binding upon all holders of Secured
Obligations. Notwithstanding the foregoing, or any provision to the contrary in
the Security Documents, the Collateral Trustee shall not be required to take any
action which exposes the Collateral Trustee to personal liability or which is
contrary to the Security Documents or applicable law.

                                      -12-
<PAGE>

         4.2 Enforcement of Collateral.

             (a) The Collateral Trustee shall not be deemed to have knowledge of
the existence of any condition or event which constitutes an Event of Default,
unless notified in writing by any holder of Secured Obligations. The Collateral
Trustee shall not be under any obligation, as a result of knowledge of an Event
of Default, to take any action under the provisions of any Security Document
unless so directed by the holders of the Secured Obligations in accordance with
this Agreement.

             (b) At any time if an Event of Default exists, the holders of any
Class of Master Debt so in default shall be entitled to give the Collateral
Trustee and the Company a Notice of Event of Default but the failure of the
Company to receive any such notice shall not affect the validity of requests to
the Collateral Trustee or the ability of the Collateral Trustee to exercise the
rights and remedies provided in the Security Documents upon receipt by the
Collateral Trustee of any such notice. Upon receipt of any such notice, the
Collateral Trustee shall promptly notify each holder of Secured Obligations and
the Company of such notice.

             (c) The holders of any Class of Master Debt giving a Notice of
Event of Default shall be entitled to withdraw it by delivering a written notice
of the withdrawal to the Collateral Trustee (i) before the Collateral Trustee
takes any action to exercise any remedy with respect to the Collateral or (ii)
at any time thereafter, if the Company certifies to the Collateral Trustee that
the Company believes that all actions the Collateral Trustee has taken to
exercise any remedy or remedies with respect to the Collateral can be reversed,
terminated, or withdrawn without prejudice to the Collateral Trustee or the
other holders of the Secured Obligations (other than, with respect to the other
holders of the Secured Obligations, prejudice in the form of delay), in which
event (A) the Company must indemnify the Collateral Trustee and the holders of
the Secured Obligations with respect to all properly documented and reasonable
costs and expenses incurred by the Collateral Trustee and the holders of the
Secured Obligations in connection with all actions the Collateral Trustee has
taken to exercise any remedy or remedies with respect to the Collateral and in
connection with the reversing thereof, and (B) the Required Decision Group shall
have consented in writing to such reversal. The Collateral Trustee shall
immediately notify the Company and the holders of the Secured Obligations as to
the receipt and contents of any such notice of withdrawal. To the extent that
such Notice of Event of Default shall give rise to any such rights and remedies
or shall prohibit the Debtors from taking any actions, such rights and remedies
shall be suspended, and any exercise thereof by the Collateral Trustee shall
cease, and such prohibitions on the Debtors shall not remain in effect, upon the
withdrawal of such Notice of Event of Default pursuant to the terms and
provisions of this paragraph, but such rights and remedies and such prohibitions
shall be reinstated upon the giving of any later Notice of Event of Default.

                                      -13-
<PAGE>

             (d) If a Notice of Event of Default shall have been received by the
Collateral Trustee and shall not have been withdrawn in accordance with the
provisions of paragraph (c) above, the Collateral Trustee shall, promptly after
receipt of the written instructions of the Required Decision Group, exercise the
rights and remedies of the Collateral Trustee under the Security Documents and
institute and maintain suits and proceedings and take such other actions in
connection therewith, in each case as permitted under the Security Documents
during the existence of an Event of Default. Upon receipt of any written
directions pursuant to this paragraph (d), the Collateral Trustee shall promptly
send a copy thereof to each holder of Secured Obligations.

         4.3 General Provisions Regarding Remedies.

             (a) No remedy conferred upon or reserved to the Collateral Trustee
in the Security Documents is intended to be exclusive of any other remedy or
remedies, but every such remedy shall be cumulative and shall be in addition to
every other remedy conferred in the Security Documents or now or hereafter
existing at law or in equity or by statute. No delay or omission by the
Collateral Trustee in the exercise of any right, remedy, or power accruing upon
any Event of Default shall impair any such right, remedy, or power or shall be
construed to be a waiver of any such Event of Default or an acquiescence
therein; and every right, power, and remedy given by any Security Document may
be exercised from time to time and as often as may be deemed expedient by the
Collateral Trustee.

             (b) In case the Collateral Trustee shall have proceeded to enforce
any right, remedy, or power under any Security Document and the proceeding for
the enforcement thereof shall have been discontinued or abandoned for any reason
or shall have been determined adversely to the Collateral Trustee, then and in
every such case the Debtors, the Collateral Trustee, and the holders of the
Secured Obligations shall, subject to any effect of or determination in such
proceeding, severally and respectively be restored to their former positions and
rights under such Security Document with respect to the Trust Estate and in all
other respects, and thereafter all rights, remedies, and power of the Collateral
Trustee shall continue as though no such proceeding had been taken.

             (c) All rights of action and rights to assert claims upon or under
the Security Documents may be enforced by the Collateral Trustee without the
possession of any Master Debt Agreement or other instruments which manifest the
Master Debt or the production thereof in any trial or other proceeding relative
thereto, and any such suit or proceedings instituted by the Collateral Trustee
shall be brought in its name as Collateral Trustee and any recovery of judgment
shall be held as part of the Trust Estate. Each Debtor hereby waives demand,
presentment for payment, notice of nonpayment, protest, grace, notice of intent
to accelerate, notice of acceleration, and all other notices in connection with
the enforcement of the Master Debt, the Security Documents, or the

                                      -14-
<PAGE>

Collateral. To the full extent each Debtor may do so, such Debtor shall not
insist upon, plead, claim, or take advantage of any law providing for any
appraisement, valuation, stay, extension, or redemption, and such Debtor hereby
waives and releases the same, and all rights to a marshaling of the assets of
such Debtor, including the Collateral, or to a sale in inverse order of
alienation in the event of foreclosure of the Liens under the Security
Documents.

             (d) Each Debtor hereby irrevocably constitutes and appoints the
Collateral Trustee and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full power and
authority to act on behalf of such Debtor, in the name of such Debtor or in its
own name, upon the occurrence and during the continuance of any Event of Default
for the purpose of carrying out the terms of any of the Security Documents, to
take any and all appropriate action and to execute any and all documents and
instruments which may be reasonably necessary or desirable to accomplish the
purposes thereof, and instituting proceedings the Collateral Trustee deems
necessary or desirable to enforce the rights of the Collateral Trustee with
respect to the Security Documents. Without limiting the generality of the
foregoing, if any Debtor is obligated to take any action under any Security
Document and fails to take such action, the Collateral Trustee may take such
action as attorney-in-fact. This power of attorney is a power coupled with an
interest and shall be irrevocable. Each Debtor hereby ratifies all acts of such
attorney-in-fact consistent with the foregoing. Any such attorney-in-fact shall
not be liable for any acts or omissions unless they constitute the gross
negligence or wilful misconduct of such attorney-in-fact.

             (e) Notwithstanding any other provision of any Security Document,
but subject to the actions the Collateral Trustee may take with respect to the
Security Documents, neither the right of any holder of Secured Obligations to
receive payment thereon, to institute suit for the enforcement of such payment,
to assert such holder's position as a creditor in any proceeding related to the
Bankruptcy Code, or to otherwise exercise any rights such holder may have in
connection with the Secured Obligations (other than the right to enforce any
Lien on the Collateral under the Security Documents, which shall in all
circumstances be exercisable only by the Collateral Trustee as directed in
accordance with this Agreement), nor the obligation of each Debtor to pay the
Secured Obligations owing by such Debtor, shall be impaired or affected without
the consent of such holder.

             (f) If the Collateral Trustee shall have received a Notice of Event
of Default and during such time as such Notice of Event of Default shall not
have been withdrawn in accordance with the provisions of paragraph 4.2(c) above,
the Collateral Trustee, in its capacity as Collateral Trustee, is hereby
authorized at any time and from time to time to set off and apply any deposits
(general or special, time or demand, provisional or final) at any time held by
the Collateral Trustee hereunder with respect to

                                      -15-
<PAGE>

any Debtor and indebtedness at any time owing by the Collateral Trustee to any
Debtor, against any Secured Obligations, irrespective of whether or not any
holder of Secured Obligations shall have made any demand and although such
obligations may be unmatured. The Collateral Trustee agrees promptly to notify
the Company after any such setoff and application made by the Collateral
Trustee, provided that the failure to give such notice shall not affect the
validity of such set off and application. The Collateral Trustee shall have no
obligation to take any action under this paragraph unless so directed in
accordance with Section 4.2(d).

         4.4 Application of Moneys by Collateral Trustee.

             (a) On the date hereof there shall be established and, at all times
thereafter until the Trust Estate has been terminated, there shall be maintained
by and with the Collateral Trustee an account (the "Collateral Account") for the
purposes of this Agreement. To secure the prompt and complete payment, when due,
and the observance and performance of all terms, covenants, and agreements
relating to the Secured Obligations, each Debtor hereby assigns and pledges to
the Collateral Trustee for the benefit of the holders of the Secured Obligations
and grants to the Collateral Trustee for the benefit of the holders of the
Secured Obligations a security interest in all of the right, title, and interest
of such Debtor in and to the following, whether presently existing or hereafter
arising or acquired (the "Collateral Account Collateral"): the Collateral
Account, all cash deposited therein, all certificates and instruments, if any,
from time to time representing the Collateral Account; all investments from time
to time made pursuant to paragraph (b) below; all notes, certificates of
deposit, and other instruments from time to time hereafter delivered to or
otherwise possessed by the Collateral Trustee in substitution for, or in
addition to, any or all of the then existing Collateral Account Collateral; all
interest, dividends, cash, instruments, and other property from time to time
received, receivable, or otherwise distributed in respect of or in exchange for
any or all of the then existing Collateral Account Collateral; and to the extent
not covered above, all Proceeds of the foregoing (whether the same are acquired
before or after the commencement of a case under the Bankruptcy Code). All
right, title, and interest in and to the Collateral Account shall vest in the
Collateral Trustee, and funds on deposit in the Collateral Account and other
Collateral Account Collateral shall constitute part of the Trust Estate. The
Collateral Account shall be subject to the exclusive dominion and control of the
Collateral Trustee.

             (b) All money and other Proceeds received by the Collateral Trustee
in respect of any Collateral, including proceeds from sales of assets, insurance
proceeds and condemnation proceeds, amounts received as a result of set off by
the Collateral Trustee, collections of accounts, instruments, chattel paper, and
other receivables, and proceeds from any foreclosure proceedings, shall be
deposited in or credited to the Collateral Account. Any proceeds deemed not
appropriate at the time of receipt for deposit or

                                      -16-
<PAGE>

credit to the Collateral Account shall be held by the Collateral Trustee for the
benefit of the holders of the Secured Obligations until such time as cash
proceeds are realized therefrom or the Collateral Trustee deems such proceeds
appropriate for deposit or credit to the Collateral Account. All funds in the
Collateral Account shall be invested, reinvested, and liquidated (at the risk
and expense of the Debtors) in accordance with instructions given to the
Collateral Trustee by a Responsible Officer of the Company prior to a Notice of
Event of Default having been received by the Collateral Trustee and such notice
not having been withdrawn and thereafter as determined by the Collateral
Trustee, provided that all circumstances all investments shall be Permitted
Investments. The Collateral Trustee shall not be liable for any loss resulting
from any Permitted Investment or the sale or redemption thereof in accordance
with the preceding sentence. If and when cash is required for disbursement in
accordance with this Agreement, the Collateral Trustee is authorized, to the
extent necessary, to cause Permitted Investments to be sold or otherwise
liquidated in such manner as the Collateral Trustee shall deem appropriate.

             (c) Prior to any Notice of Event of Default having been received by
the Collateral Trustee, all amounts in the Collateral Account shall be held by
the Collateral Trustee for the benefit of the holders of the Secured Obligations
until the Company requests the release thereof. Any such request by the Company
shall be made in writing and accompanied by a certificate of a Responsible
Officer of the Company specifying the use for the funds released and stating
that the funds shall be used for the specified purpose, that the release is
permitted under the terms of all Master Debt Agreements, that no Event of
Default exists, and that the release would not reasonably be expected to cause
an Event of Default. Upon receipt of such certificate, the Collateral Trustee
shall forward notice thereof to the holders of the Secured Obligations and if no
objection that the release would violate the terms of any Master Debt Agreement
is received from any holder of Secured Obligations by the Collateral Trustee
within 15 days after such notice is given, the Collateral Trustee shall release
the amounts requested to the Company. If an objection is received, then the
Collateral Trustee shall retain the funds in the Collateral Account until such
objection is withdrawn, distributions are made under paragraph (d) below, or the
Collateral Trustee shall have received a final order of a court of competent
jurisdiction directing it to release the funds. Notwithstanding anything herein
to the contrary, and in precedence to any rights under Section 4.3(f), the
Collateral Trustee shall, at all times, have the right to apply moneys and
property held by the Collateral Trustee in the Collateral Account to the payment
of amounts due and unpaid to it pursuant to Section 5.3, and all other amounts
due to the Collateral Trustee under the terms of the Security Documents,
including all reasonable costs and expenses (including reasonable attorneys
fees) incurred in connection with any sale, disposition, or other attempt to
realize upon all or any part of the Collateral. The Collateral Trustee shall
provide the Company with prompt notice of any such application of moneys or
property.

                                      -17-
<PAGE>

             (d) After any Notice of Event of Default having been received by
the Collateral Trustee and such notice not having been withdrawn, all moneys and
property held or received by the Collateral Trustee in the Collateral Account
shall be held in the Collateral Account for the benefit of the holders of the
Secured Obligations and, upon election by the Collateral Trustee or direction in
accordance with Section 4.2(d), and to the extent available for distribution, be
distributed from time to time by the Collateral Trustee in the following order
of priority:

      First: to the Collateral Trustee in an amount equal to the outstanding but
      unpaid Collateral Trustee Obligations, whether or not due and payable,
      plus an amount equal to the Collateral Trustee's estimate of the reserves
      required to ensure payment of all Collateral Trustee Obligations that
      could become due and payable to the Collateral Trustee in accordance with
      the terms of the Security Documents from time to time;

      Second: to the holders of Master Debt in an amount equal to the
      outstanding but unpaid principal amount of indebtedness, reimbursement
      obligations for draws on letters of credit, and cash collateralization
      obligations for letters of credit under the Master Debt Agreements, all
      accrued but unpaid interest thereon under the Master Debt Agreements, all
      unpaid premium, if any, in connection therewith under the Master Debt
      Agreements, all unpaid fees in connection therewith under the Master Debt
      Agreements, in each case whether or not due and payable, and, if such
      moneys and property shall be insufficient to pay such amounts in full,
      then ratably (without priority of any one over any other) to the holders
      of such Master Debt in proportion to the unpaid amounts thereof; provided,
      however, that with respect to all cash collateralization obligations
      covering contingent obligations under letters of credit, (1) rather than
      distributing the amounts allocable to such obligations to the holders
      thereof, such amounts shall be reserved in the Collateral Account (such
      reserve being the "L/C Reserve") and set aside for the purpose of covering
      reimbursement obligations for such letters of credit as they arise in
      connection with draws under such letters of credit, (2) upon any draws
      under such letters of credit that are not reimbursed when due, and at the
      request of the Required Percentage of the holders of such obligations, the
      Collateral Trustee shall distribute the ratable share of the L/C Reserve
      allocable to such reimbursement obligations to the holders thereof, and
      (3) as such obligations expire or become covered by cash collateral or
      otherwise, the Collateral Trustee shall release the ratable share of the
      L/C Reserve allocable to such obligations which have expired into the
      Collateral Account for general distribution in accordance with this
      Agreement as part of the next distribution;

      Third: to the holders of the Secured Obligations in an amount equal to all
      unpaid reimbursement, indemnification, and other payment obligations under
      the Master

                                      -18-
<PAGE>

      Debt Agreements not covered above, in each case whether or not due and
      payable, and, if such moneys and property shall be insufficient to pay
      such amounts in full, then ratably (without priority of any one over any
      other) to the holders of the Secured Obligations in proportion to the
      unpaid amounts thereof; and

      Finally: any surplus then remaining shall be paid to the Company or its
      successors or assigns.

The term "unpaid" as used in this Section (d) refers: (1) in the absence of a
bankruptcy proceeding with respect to any Debtor, to all amounts of Secured
Obligations outstanding as of a Distribution Date, whether or not then due and
payable, and (2) during the pendency of a bankruptcy proceeding with respect to
any Debtor, to all amounts with respect to such Debtor allowed by the bankruptcy
court in respect of Secured Obligations as a basis for distribution (including
estimated amounts, if any, allowed in respect of contingent claims), in each
case, to the extent that prior distributions have not been made in respect
thereof.

             (e) In making available amounts for distribution, the Collateral
Trustee may liquidate investments prior to maturity in order to make a
distribution. In making determinations and allocations required by Section (d)
above, all property distributed shall be distributed in accordance with, and
subsequent distributions made on the basis of, the fair market value of such
property, as determined in good faith by the Collateral Trustee

             (f) In making available amounts for distribution, the Collateral
Trustee may make payments with respect to any holders of Secured Obligations
that are part of any Class of Master Debt having an agent or trustee with
general administrative responsibilities for such Class of Master Debt by
providing payment to such agent or trustee, and such payment shall be deemed
effective for all such holders of Secured Obligations upon receipt by such agent
or trustee.

                                   ARTICLE 5.
                             THE COLLATERAL TRUSTEE

         5.1 Acceptance of Trust Estate; Limitations. The Collateral Trustee
hereby accepts the trusts of this Agreement for the benefit of the holders of
the Secured Obligations, but only upon the terms herein set forth, including the
following:

             (a) Neither the Collateral Trustee nor any of its directors,
officers, agents, or employees shall be liable for any action taken or omitted
to be taken by it or them under or in connection with the Security Documents,
except for its or their own

                                      -19-
<PAGE>

gross negligence or willful misconduct. Without limitation of the generality of
the foregoing, the Collateral Trustee: (i) may continue to treat each of the
original holders of Secured Obligations as the current holders thereof until the
Collateral Trustee receives documentation that is acceptable to Collateral
Trustee (in the Collateral Trustee's sole discretion) evidencing any transfer of
such holder's rights and obligations to another entity; (ii) may consult with
legal counsel (including counsel for any Debtor), independent public
accountants, and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants, or experts; (iii) makes no warranty or
representation to any Debtor or any holder of Secured Obligations and shall not
be responsible to any Debtor or any holder of Secured Obligations for any
statements, warranties, or representations (whether written or oral) made in or
in connection with the Security Documents; (iv) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms,
covenants, or conditions of any Security Document on the part of any obligor
thereunder or to inspect any property (including the books and records) of any
obligor thereunder; (v) shall not be responsible to any Person for the due
execution, legality, validity, enforceability, genuineness, sufficiency, or
value of any Security Document or any other instrument or document furnished
pursuant thereto (or the sufficiency of the Collateral, the perfection or
priority of any Lien thereon, the recordation, filing, or maintenance of
recordation or filing with respect thereto, or the sufficiency or continuation
of any insurance with respect thereto); and (vi) shall incur no liability under
or in respect of any Security Document or any other instrument or document
furnished pursuant thereto by acting upon any notice, consent, certificate, or
other instrument or writing (which may be by telecopier, telegram, cable, or
telex) believed by it to be genuine and signed or sent by the proper party or
parties.

             (b) the Collateral Trustee may rely and shall be protected in
acting upon any resolution, certificate, opinion, consent, or other document
reasonably believed by it to be genuine and to have been executed or presented
by the proper party or parties, and without limiting the foregoing, (i) in
making any payment or in taking any other action hereunder in respect of any
Master Debt, the Collateral Trustee may rely upon the certificate of a
Responsible Officer of the Company with respect to the ownership of such Master
Debt and the amounts due thereunder unless it shall have received written notice
to the contrary and (ii) whenever in the administration of its duties hereunder,
the Collateral Trustee deems it reasonably necessary for a matter to be proved
or established prior to taking any action hereunder, the Collateral Trustee may
request and a Responsible Officer of the Company shall provide certification
regarding such matter, upon which the Collateral Trustee shall be protected in
relying.

             (c) With respect to its commitments, the advances made by it, the
reimbursement obligations owed to it, any interest in any letter of credit held
by it, or any

                                      -20-
<PAGE>

of its other rights or obligations with respect to any Master Debt or any other
present or future credit or structured finance arrangement, Citibank N.A., shall
have the same rights and powers thereunder and may exercise the same in each
case as though it was not the Collateral Trustee. The terms holder of Secured
Obligations and holder of Master Debt shall, unless otherwise expressly
indicated, include Citibank, N.A., in its individual capacity. Citibank, N.A.,
and its affiliates may accept deposits from, lend money to, act as trustee under
indentures of, and generally engage in any kind of business with, any Debtor or
any other subsidiary or affiliate thereof, any Person who may do business with
or own, directly or indirectly, securities of any Debtor or any other subsidiary
or affiliate thereof and any other Person, all as if Citibank, N.A., were not
the Collateral Trustee, in each case without any duty to account therefor to any
Debtor or any holder of Secured Obligations.

             (d) Each holder of Secured Obligations acknowledges that it has,
independently and without reliance upon the Collateral Trustee or any other
holder of Secured Obligations and based on the financial statements and such
other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into the transactions related to the
Security Documents and the credit documents related thereto it has executed.
Each holder of Secured Obligations also acknowledges that it will, independently
and without reliance upon the Collateral Trustee or any other holder of Secured
Obligations and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Security Documents and the credit documents related
thereto.

             (e) The Collateral Trustee shall incur no liability with respect to
any action or omission taken in accordance with the terms of the Security
Documents or the instructions of the Company or the Required Decision Group, the
Required Majority, or any other holders of Secured Obligations as provided in
the Security Documents or for any other action or omission of the Collateral
Trustee, so long as the same are made in good faith (except that nothing
contained herein shall relieve the Collateral Trustee from liability for its own
gross negligence or willful misconduct), and in no event shall the Collateral
Trustee be liable for special, indirect, or consequential losses or damages of
any kind whatsoever (including but not limited to lost profits).

         5.2 Limitation of Scope of Duties. Beyond its duties set forth in the
Security Documents as to the custody and preservation of Collateral, which are
for the benefit of the holders of the Secured Obligations, and the accounting to
the Company and the holders of the Secured Obligations for moneys received by
the Collateral Trustee under the Security Documents, the Collateral Trustee
shall not have any duty to any Debtor or any holder of Secured Obligations with
respect to any Collateral, any income thereon, or the preservation of rights
against prior parties or any other rights pertaining thereto.

                                      -21-
<PAGE>

         5.3 Expenses and Indemnity.

         (a) (i) Each Debtor agrees to pay on demand all reasonable
out-of-pocket costs and expenses of the Collateral Trustee in connection with
the preparation, execution, delivery, administration, modification, and
amendment of the Security Documents and the other documents to be delivered
thereunder, including the reasonable fees and out-of-pocket expenses of counsel
for the Collateral Trustee with respect thereto and with respect to advising the
Collateral Trustee as to its rights and responsibilities under the Security
Documents, and (ii) each Debtor agrees to pay on demand all costs and expenses,
if any (including reasonable counsel fees and expenses, which may include
allocated costs of in-house counsel), of the Collateral Trustee in connection
with the enforcement of the Security Documents (whether before or after the
occurrence of an Event of Default and whether through negotiations (including
formal workouts or restructurings), legal proceedings or otherwise).

         (b) Each Debtor agrees, to the fullest extent permitted by law, to
indemnify and hold harmless the Collateral Trustee and its directors, officers,
agents, and employees (the "Indemnified Parties") from and against any and all
claims, damages, losses, liabilities, and expenses (including reasonable fees
and disbursements of counsel) of any kind or nature whatsoever for which any of
them may become liable or which may be incurred by or asserted against any of
the Indemnified Parties, in each case in connection with or arising out of or by
reason of any investigation, litigation, or proceeding, whether or not any of
the Indemnified Parties is a party thereto, arising out of, related to, or in
connection with any Security Document or any transaction related thereto
(EXPRESSLY INCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY, OR EXPENSE
ATTRIBUTABLE TO THE ORDINARY, SOLE, OR CONTRIBUTORY NEGLIGENCE OF SUCH
INDEMNIFIED PARTY, BUT EXCLUDING ANY SUCH CLAIM, DAMAGE, LOSS, LIABILITY, OR
EXPENSE ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH
INDEMNIFIED PARTY). IT IS THE INTENT OF THE PARTIES HERETO THAT EACH INDEMNIFIED
PARTY SHALL, TO THE EXTENT PROVIDED IN THIS PARAGRAPH (b), BE INDEMNIFIED FOR
ITS OWN ORDINARY, SOLE, OR CONTRIBUTORY NEGLIGENCE.

         5.4 Resignation, Removal, and Replacement of Collateral Trustee. The
Collateral Trustee or any successor Collateral Trustee may resign at any time by
giving at least 30 days' prior written notice of resignation to the Company and
each holder of Secured Obligations, such resignation to be effective on the
later of (a) the date specified in such notice or (b) the date on which a
replacement trustee is appointed to act as Collateral Trustee hereunder. The
Company shall appoint a replacement trustee within 30 days of receiving notice
of any such resignation. If an instrument of acceptance by a successor
Collateral Trustee shall not have been delivered to the Collateral Trustee
within

                                      -22-
<PAGE>

30 days after the giving of such notice of resignation, the resigning Collateral
Trustee may petition any court of competent jurisdiction for the appointment of
a successor Collateral Trustee. The Required Decision Group may at any time
remove the Collateral Trustee for or without cause by an instrument or
instruments in writing delivered to the Collateral Trustee and the Company. In
case the office of Collateral Trustee shall become vacant for any reason, the
Required Decision Group may appoint a successor Collateral Trustee (eligible as
provided in Section 5.6) to fill such vacancy by an instrument or instruments in
writing delivered to such successor Collateral Trustee, the retiring Collateral
Trustee and the Company. Upon the appointment of any successor Collateral
Trustee pursuant to this Section 5.4, such successor Collateral Trustee shall
execute, acknowledge, and deliver to the Company and to the retiring Collateral
Trustee an instrument accepting such appointment, and thereupon such successor
Collateral Trustee shall immediately and without any further action succeed to
all the rights and obligations of the retiring Collateral Trustee under the
Security Documents as if originally named therein and the retiring Collateral
Trustee, at the expense of the Company, shall duly assign, transfer, and deliver
to such successor Collateral Trustee all the rights and moneys at the time held
by the retiring Collateral Trustee under the Security Documents and shall
execute and deliver such proper instruments as may be reasonably requested to
evidence such assignment, transfer, and delivery.

         5.5 Fees of Collateral Trustee. The Debtors agree to pay compensation
for the services of the Collateral Trustee hereunder in accordance with the
letter agreement dated as of even date herewith related thereto or any future
applicable agreements among the Debtors and the Collateral Trustee.

         5.6 Appointment of Separate or Co-Collateral Trustee. The Collateral
Trustee may, and upon the request of the Required Decision Group shall, by an
instrument in writing delivered to the Company and to each holder of Secured
Obligations, appoint a bank or trust company or an individual to act as separate
trustee or co-trustee in a jurisdiction where the Collateral Trustee is
disqualified from acting, such separate trustee or co-trustee to exercise only
such rights and to have only such duties as shall be specified in the instrument
of appointment. The Debtors will pay the reasonable compensation and expenses of
any such separate trustee or co-trustee and indemnify such Person as if such
Person was the Collateral Trustee hereunder.

                                      -23-
<PAGE>

                                   ARTICLE 6.
                                  MISCELLANEOUS

         6.1 Interpretation; Severability; Survival.

         (a) Article, Section, Schedule, and Exhibit references are to this
Agreement, unless otherwise specified. All references to instruments, documents,
contracts, and agreements are references to such instruments, documents,
contracts, and agreements as the same may be amended, waived, and otherwise
modified from time to time, unless otherwise specified. The word "including"
shall mean "including but not limited to." Whenever any determination, consent,
or approval is to be made or given by the Collateral Trustee, such action shall
be in the Collateral Trustee's sole discretion unless otherwise specified in
this Agreement. This Agreement has been reviewed and negotiated by sophisticated
parties with access to legal counsel and shall not be construed against the
drafter.

         (b) If any provision in this Agreement is held to be illegal, invalid,
not binding, or unenforceable, such provision shall be fully severable and this
Agreement shall be construed and enforced as if such illegal, invalid, not
binding, or unenforceable provision had never comprised a part of this
Agreement, and the remaining provisions shall remain in full force and effect.

         (c) All warranties, representations, and covenants made by any Debtor
in any Security Document or in any certificate or other document delivered in
connection therewith shall be considered to have been relied upon by the
Collateral Trustee and the holders of Secured Obligations and shall survive the
issuance and delivery of any Master Debt Agreement and the advancing of any
Master Debt regardless of any investigation. The indemnities and other payment
obligations of the Debtors set forth in Section 5.3, and any provisions that
expressly so state, will survive the repayment of the Secured Obligations, the
resignation or removal of any Collateral Trustee, and the termination of the
Security Documents.

         (d) Except as expressly stated otherwise in the Security Documents, the
obligations of each Debtor under the Security Documents are several and not
joint and several.

         6.2 Amendments, etc. No amendment or waiver of any provision of this
Agreement, nor consent to any departure therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Debtors and the
Collateral Trustee acting with the approval of the Required Decision Group, and
then such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given; provided that any amendment, waiver,
or consent that affect the rights or duties of the

                                      -24-
<PAGE>

Collateral Trustee under any Security Document or any other instrument or
document furnished pursuant thereto shall in addition require the consent of the
Collateral Trustee in its sole discretion; and provided further that any
amendment, waiver, or consent impairing the rights of the holders of Release
Master Debt under Section 3.3 shall in addition require the consent of the
Required Majority. Amendments, waivers, or consents made as required above shall
be binding on the Debtors, the Collateral Trustee, and all holders of Secured
Obligations, including any amendment, waiver, or consent that impairs the
rights, if any, of holders of certain Secured Obligations under Sections 2.5,
2.9, 3.2, or 4.4. Nothing herein is intended to impair the rights of the Debtors
and the holders of Secured Obligations from entering into documents and
agreements outside of the Security Agreements.

         6.3 Binding Effect; Assignment. The Security Documents shall be binding
upon and inure to the benefit of the Debtors and the Collateral Trustee, and
their respective successors and permitted assigns. Except as expressly provided
in the Security Documents, the Security Documents shall not be construed so as
to confer any right or benefit upon non-parties other than the holders of the
Secured Obligations and their respective successors and permitted assigns. The
Debtors may not assign their rights or duties under the Security Documents. The
Collateral Trustee may assign its rights and duties under the Security Documents
in accordance with the terms of thereof. The rights and duties of the holders of
the Secured Obligations under the Security Documents shall be transferred with
the Secured Obligations in accordance with the terms of the applicable Master
Debt Agreements.

         6.4 Notice, etc., under Security Documents.

             (a) All notices and other communications provided for under the
Security Documents shall be in writing (including telecopy communication) and
mailed, telecopied, or delivered, (i) if to the Collateral Trustee, to its
address at 111 Wall Street, New York, New York 10043, (telecopier number: (212)
657-3862), Attention: Edward Morelli, with a copy to Citicorp North America,
Inc., 1200 Smith Street, Suite 2000, Houston, Texas 77002 (telecopier number:
(713) 654-2849), Attention: The Williams Companies, Inc. Account Officer; (ii)
if to any holder of Secured Obligations other than the Collateral Trustee, at
the address specified for such holder of Secured Obligations under the
applicable Master Debt Agreement (and the Company shall provide updated
information regarding such notice addresses to the Collateral Trustee promptly
upon any change thereof), (iii) if to the Company or any Debtor, to the Company
at One Williams Center, Suite 5000, Tulsa, Oklahoma 74172 (telecopier number:
(918) 573-2065), Attention: Patti J. Kastl; or (iv) with respect to any of the
foregoing, at such other address as shall be designated by such Person in a
written notice to the Collateral Trustee and the Company. All such notices and
communications shall, when mailed or telecopied, be

                                      -25-
<PAGE>

effective when received in the mail or sent by telecopier, except that notices
and communications to the Collateral Trustee shall not be effective until
received by the Collateral Trustee.

             (b) The Collateral Trustee shall deliver to each holder of Secured
Obligations and to the Company, promptly upon receipt thereof, duplicates or
copies of all notices, requests, and other instruments received by the
Collateral Trustee under or pursuant to the Security Documents, to the extent
that the same shall not have been furnished pursuant thereto to such holder of
Secured Obligations.

             (c) For the purposes of the Security Documents, the Collateral
Trustee may give notices with respect to any holders of Secured Obligations that
are part of any Class of Master Debt having an agent or trustee with general
administrative responsibilities for such Class of Master Debt by providing
notice to such agent or trustee, and such notice shall be deemed effective for
all such holders of Secured Obligations upon receipt by such agent or trustee.

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

         6.6 Waiver of Jury Trial. THE DEBTORS AND THE COLLATERAL TRUSTEE, AND
EACH HOLDER OF SECURED OBLIGATIONS, HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF THE SECURITY DOCUMENTS
OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREBY.

         6.7 Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED
ON THE SECURITY DOCUMENTS, OR ARISING OUT OF ANY SECURITY DOCUMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR
ACTIONS OF THE COLLATERAL TRUSTEE, THE HOLDERS OF SECURED OBLIGATIONS, OR ANY
DEBTOR IN CONNECTION WITH THE SECURITY DOCUMENTS MAY BE BROUGHT AND MAINTAINED
IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING
ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE
COLLATERAL TRUSTEE'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH
COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH DEBTOR IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES
SPECIFIED IN SECTION 6.4. EACH DEBTOR HEREBY

                                      -26-
<PAGE>

EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY
SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT
ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT
THAT ANY DEBTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF
ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE,
ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION, OR OTHERWISE) WITH
RESPECT TO ITSELF OR ITS PROPERTY, SUCH DEBTOR HEREBY IRREVOCABLY WAIVES TO THE
FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER THE SECURITY DOCUMENTS.

         6.8 Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which counterparts, when so executed and delivered, shall be deemed to
be an original and all of which counterparts, taken together, shall constitute
but one and the same Agreement.

               [the remainder of this page is intentionally blank]

                                      -27-
<PAGE>

EXECUTED as of the date first above written.

                                           COLLATERAL TRUSTEE:

                                           CITIBANK, N.A.,
                                           as Collateral Trustee

                                           By:     /s/ Edward C. Morelli
                                           Name:   Edward C. Morelli
                                           Title:  Vice President

                  Signature Page to Collateral Trust Agreement

                                      -28-
<PAGE>

                                           DEBTORS:

                                           THE WILLIAMS COMPANIES,  INC.

                                           By:  /s/ James G. Ivey
                                           Name:  James G. Ivey
                                           Title: Treasurer

                  Signature Page to Collateral Trust Agreement

<PAGE>

                                 [SUBSIDIARIES]

Collateral Trust Agreement executed by the following Williams entities:

Black Marlin Pipeline Company
-------------------------------------------------------------
Gas Supply, L.L.C.
-------------------------------------------------------------
Juarez Pipeline Company
-------------------------------------------------------------
Mapco, Inc.
-------------------------------------------------------------
MAPL Investments, Inc.
-------------------------------------------------------------
Memphis Generation, L.L.C.
-------------------------------------------------------------
North Padre Island Spindown, Inc.
-------------------------------------------------------------
The Williams Companies, Inc.
-------------------------------------------------------------
WFS Enterprises, Inc.
-------------------------------------------------------------
WFS-Liquids Company
-------------------------------------------------------------
WFS-NGL Pipeline Company Inc.
-------------------------------------------------------------
WFS-Offshore Gathering Company
-------------------------------------------------------------
Williams Alaska Air Cargo Properties, L.L.C.
-------------------------------------------------------------
Williams Alaska Petroleum, Inc.
-------------------------------------------------------------
Williams Alaska Pipeline Company, L.L.C.
-------------------------------------------------------------
Williams Bio-Energy, L.L.C.
-------------------------------------------------------------
Williams Energy Services, L.L.C.
-------------------------------------------------------------
Williams Ethanol Services, Inc.
-------------------------------------------------------------
Williams Express, Inc. [AK]
-------------------------------------------------------------
Williams Express, Inc. [DE]
-------------------------------------------------------------
Williams Field Services Company
-------------------------------------------------------------
Williams Field Services Group, Inc.
-------------------------------------------------------------
Williams Field Services-Gulf Coast Company, L.P.
-------------------------------------------------------------
Williams Gas Processing-Wamsutter Company
-------------------------------------------------------------
Williams Gas Processing Company
-------------------------------------------------------------
Williams Generating Memphis, LLC
-------------------------------------------------------------
Williams Generation Company - Hazelton
-------------------------------------------------------------
Williams Memphis Terminal, Inc.
-------------------------------------------------------------
Williams Merchant Services Company, Inc.
-------------------------------------------------------------
Williams Midstream Natural Gas Liquids, Inc.
-------------------------------------------------------------
Williams Mid-South Pipelines, LLC
-------------------------------------------------------------
Williams Natural Gas Liquids, Inc.
-------------------------------------------------------------
Williams Olefins Feedstock Pipelines, L.L.C.
-------------------------------------------------------------
Williams Olefins, L.L.C.
-------------------------------------------------------------
Williams Petroleum Pipeline Systems, Inc.
-------------------------------------------------------------
Williams Refining & Marketing, L.L.C.
-------------------------------------------------------------
Worthington Generation, L.L.C.
-------------------------------------------------------------

<PAGE>

                                   Schedule 1
                          to Collateral Trust Agreement

                             MASTER DEBT AGREEMENTS

1. That Credit Agreement dated as of July 31, 2002 (as amended, modified,
supplemented or restated from time to time), by and among the Company together
with Citicorp USA, Inc., as agent and collateral agent, Bank of America N. A. as
syndication agent, Citibank, N.A. and Bank of America N.A. as issuing bank,
Salomon Smith Barney Inc. as L/C Arranger, and the banks named therein.

2. The Company; Northwest Pipeline Corporation, a Delaware corporation;
Transcontinental Gas Pipe Line Corporation, a Delaware corporation; and Texas
Gas Transmission Corporation, a Delaware corporation, as the borrowers, have
entered into a Credit Agreement dated July 25, 2000, as amended, together with
the banks named therein, and The Chase Manhattan Bank and Commerzbank AG as
co-syndication agents, and Credit Lyonnais New York Branch as documentation
agent and Citibank, N.A., as agent, and Salomon Smith Barney, as Arranger.

3  Indenture between MAPCO, Inc., as Issuer, and Bankers Trust Company, as
Trustee dated March 31, 1990.

4  Indenture between Transco Energy Company, as Issuer, and The Bank of
New York, as Trustee, dated May 1, 1990.

All documents, instruments, agreements, certificates and notices at any time
executed and/or delivered in connection with any of the foregoing Master Debt
Agreements.

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