Document:

EXHIBIT 10.1

                                6,000,000 Shares

                                   LEXENT INC.

                     Common Stock, par value $.001 per share

                             UNDERWRITING AGREEMENT

                                                                   July 27, 2000

CREDIT SUISSE FIRST BOSTON CORPORATION
CHASE SECURITIES INC.
RAYMOND JAMES & ASSOCIATES, INC.

  As Representatives of the Several Underwriters,
    c/o Credit Suisse First Boston Corporation,
         Eleven Madison Avenue,
         New York, N.Y. 10010-3629

Dear Sirs:

          1. Introductory. Lexent Inc., a Delaware corporation ("Company"),
proposes to issue and sell 6,000,000 shares ("Firm Securities") of its Common
Stock, par value $.001 per share ("Securities") and also proposes to issue and
sell to the Underwriters, at the option of the Underwriters, an aggregate of not
more than 900,000 additional shares ("Optional Securities") of its Securities as
set forth below. The Firm Securities and the Optional Securities are herein
collectively called the "Offered Securities". As part of the offering
contemplated by this Agreement, Credit Suisse First Boston Corporation (the
"Designated Underwriter") has agreed to reserve out of the Firm Securities
purchased by it under this Agreement, up to 823,333 shares, for sale to the
Company's directors, officers, employees and other parties associated with the
Company (collectively, "Participants"), as set forth in the Prospectus (as
defined herein) under the heading "Underwriting" (the "Directed Share Program").
The Firm Securities to be sold by the Designated Underwriter pursuant to the
Directed Share Program (the "Directed Shares") will be sold by the Designated
Underwriter pursuant to this Agreement at the public offering price. Any
Directed Shares not subscribed for by the end of the business day on which this
Agreement is executed will be offered to the public by the Underwriters as set
forth in the Prospectus. The Company hereby agrees with the several Underwriters
named in Schedule A hereto ("Underwriters") as follows:

          2. Representations and Warranties of the Company. The Company
represents and warrants to, and agrees with, the several Underwriters that:

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     (a) A registration statement (No. 333_30660) relating to the Offered
Securities, including a form of prospectus, has been filed with the Securities
and Exchange Commission ("Commission") and either (i) has been declared
effective under the Securities Act of 1933 ("Act") and is not proposed to be
amended or (ii) is proposed to be amended by amendment or post_effective
amendment. If such registration statement ("initial registration statement") has
been declared effective, either (i) an additional registration statement
("additional registration statement") relating to the Offered Securities may
have been filed with the Commission pursuant to Rule 462(b) ("Rule 462(b)")
under the Act and, if so filed, has become effective upon filing pursuant to
such Rule and the Offered Securities all have been duly registered under the Act
pursuant to the initial registration statement and, if applicable, the
additional registration statement or (ii) such an additional registration
statement is proposed to be filed with the Commission pursuant to Rule 462(b)
and will become effective upon filing pursuant to such Rule and upon such filing
the Offered Securities will all have been duly registered under the Act pursuant
to the initial registration statement and such additional registration
statement. If the Company does not propose to amend the initial registration
statement or if an additional registration statement has been filed and the
Company does not propose to amend it, and if any post_effective amendment to
either such registration statement has been filed with the Commission prior to
the execution and delivery of this Agreement, the most recent amendment (if any)
to each such registration statement has been declared effective by the
Commission or has become effective upon filing pursuant to Rule 462(c) ("Rule
462(c)") under the Act or, in the case of the additional registration statement,
Rule 462(b). For purposes of this Agreement, "Effective Time" with respect to
the initial registration statement or, if filed prior to the execution and
delivery of this Agreement, the additional registration statement means (i) if
the Company has advised the Representatives that it does not propose to amend
such registration statement, the date and time as of which such registration
statement, or the most recent post_effective amendment thereto (if any) filed
prior to the execution and delivery of this Agreement, was declared effective by
the Commission or has become effective upon filing pursuant to Rule 462(c), or
(ii) if the Company has advised the Representatives that it proposes to file an
amendment or post_effective amendment to such registration statement, the date
and time as of which such registration statement, as amended by such amendment
or post_effective amendment, as the case may be, is declared effective by the
Commission. If an additional registration statement has not been filed prior to
the execution and delivery of this Agreement but the Company has advised the
Representatives that it proposes to file one, "Effective Time" with respect to
such additional registration statement means the date and time as of which such
registration statement is filed and becomes effective pursuant to Rule 462(b).
"Effective Date" with respect to the initial registration statement or the
additional registration statement (if any) means the date of the Effective Time
thereof. The initial registration statement, as amended at its Effective Time,
including all information contained in the additional registration statement (if
any) and deemed to be a part of the initial registration statement as of the
Effective Time of the additional registration statement pursuant to the General
Instructions of the Form on which it is filed and including all information (if
any) deemed to be a part of the initial registration statement as of its
Effective Time pursuant to Rule 430A(b) ("Rule 430A(b)") under the Act, is

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hereinafter referred to as the "Initial Registration Statement". The additional
registration statement, as amended at its Effective Time, including the contents
of the initial registration statement incorporated by reference therein and
including all information (if any) deemed to be a part of the additional
registration statement as of its Effective Time pursuant to Rule 430A(b), is
hereinafter referred to as the "Additional Registration Statement". The Initial
Registration Statement and the Additional Registration Statement are herein
referred to collectively as the "Registration Statements" and individually as a
"Registration Statement". The form of prospectus relating to the Offered
Securities, as first filed with the Commission pursuant to and in accordance
with Rule 424(b) ("Rule 424(b)") under the Act or (if no such filing is
required) as included in a Registration Statement, is hereinafter referred to as
the "Prospectus". No document has been or will be prepared or distributed in
reliance on Rule 434 under the Act.

     (b) If the Effective Time of the Initial Registration Statement is prior to
the execution and delivery of this Agreement: (i) on the Effective Date of the
Initial Registration Statement, the Initial Registration Statement conformed in
all material respects to the requirements of the Act and the rules and
regulations of the Commission ("Rules and Regulations") and did not include any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not misleading,
(ii) on the Effective Date of the Additional Registration Statement (if any),
each Registration Statement conformed, or will conform, in all material respects
to the requirements of the Act and the Rules and Regulations and did not
include, or will not include, any untrue statement of a material fact and did
not omit, or will not omit, to state any material fact required to be stated
therein or necessary to make the statements therein not misleading and (iii) on
the date of this Agreement, the Initial Registration Statement and, if the
Effective Time of the Additional Registration Statement is prior to the
execution and delivery of this Agreement, the Additional Registration Statement
each conforms, and at the time of filing of the Prospectus pursuant to Rule
424(b) or (if no such filing is required) at the Effective Date of the
Additional Registration Statement in which the Prospectus is included, each
Registration Statement and the Prospectus will conform, in all material respects
to the requirements of the Act and the Rules and Regulations, and neither of
such documents includes, or will include, any untrue statement of a material
fact or omits, or will omit, to state any material fact required to be stated
therein or necessary to make the statements therein not misleading. If the
Effective Time of the Initial Registration Statement is subsequent to the
execution and delivery of this Agreement: on the Effective Date of the Initial
Registration Statement, the Initial Registration Statement and the Prospectus
will conform in all material respects to the requirements of the Act and the
Rules and Regulations, neither of such documents will include any untrue
statement of a material fact or will omit to state any material fact required to
be stated therein or necessary to make the statements therein not misleading,
and no Additional Registration Statement has been or will be filed. The two
preceding sentences do not apply to statements in or omissions from a
Registration Statement or the Prospectus based upon written information
furnished to the Company by any Underwriter

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through the Representatives specifically for use therein, it being understood
and agreed that the only such information is that described as such in Section
7(b) hereof.

     (c) The Company has been duly incorporated and is an existing corporation
in good standing under the laws of the State of Delaware, with power and
authority (corporate and other) to own its properties and conduct its business
as described in the Prospectus; and the Company is duly qualified to do business
as a foreign corporation in good standing in all other jurisdictions in which
its ownership or lease of property or the conduct of its business requires such
qualification, except where the failure to be so qualified would not have a
material adverse effect on the condition (financial or other), business,
properties or results of operations of the Company and its subsidiaries taken as
a whole (a "Material Adverse Effect").

     (d) Each subsidiary of the Company has been duly incorporated or organized,
as the case may be, and is an existing corporation or limited liability company,
as the case may be, in good standing under the laws of the jurisdiction of its
incorporation or organization, with power and authority (corporate and other) to
own its properties and conduct its business as described in the Prospectus; and
each subsidiary of the Company is duly qualified to do business as a foreign
corporation or limited liability company, as the case may be, in good standing
in all other jurisdictions in which its ownership or lease of property or the
conduct of its business requires such qualification, except where the failure to
be so qualified would not have a Material Adverse Effect; and all of the issued
and outstanding ownership interests of each subsidiary of the Company has been
duly authorized and validly issued; and all the ownership interests of each
subsidiary are owned directly by the Company and, except as described in the
Prospectus, are free from liens, encumbrances and defects.

     (e) The Offered Securities and all other outstanding shares of capital
stock of the Company have been duly authorized; all outstanding shares of
capital stock of the Company are, and, when the Offered Securities have been
delivered and paid for in accordance with this Agreement on each Closing Date
(as defined below), such Offered Securities will have been, validly issued,
fully paid and nonassessable and will conform to the description thereof
contained in the Prospectus; and the stockholders of the Company have no
preemptive rights arising by operation of law, under the Company's certificate
of incorporation or by-laws or otherwise with respect to the Securities.

     (f) Except as disclosed in the Prospectus, there are no contracts,
agreements or understandings between the Company and any person that would give
rise to a valid claim against the Company or any Underwriter for a brokerage
commission, finder's fee or other like payment in connection with this offering.

     (g) Except for the Registration Rights Agreement, dated as of July 23,
1998, between the Company and the investors named therein, there are no
contracts, agreements or understandings between the Company and any person
granting such person the right to require the Company to file a registration
statement under the Act with respect to any

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securities of the Company owned or to be owned by such person or to require the
Company to include such securities in the securities registered pursuant to a
Registration Statement or in any securities being registered pursuant to any
other registration statement filed by the Company under the Act.

     (h) The Offered Securities have been approved for listing on the Nasdaq
Stock Market's National Market.

     (i) No consent, approval, authorization, or order of, or filing with, any
governmental agency or body or any court is required for the consummation of the
transactions contemplated by this Agreement in connection with the issuance and
sale of the Offered Securities by the Company, except such as have been obtained
and made under the Act or as may be required under state securities laws.

     (j) The execution, delivery and performance of this Agreement, and the
issuance and sale of the Offered Securities will not result in a breach or
violation of any of the terms and provisions of, or constitute a default under,
any statute, any rule, regulation or order of any governmental agency or body or
any court, domestic or foreign, having jurisdiction over the Company or any
subsidiary of the Company or any of their properties, or any agreement or
instrument to which the Company or any such subsidiary is a party or by which
the Company or any such subsidiary is bound or to which any of the properties of
the Company or any such subsidiary is subject, or the charter or by_laws of the
Company or certificate of formation or limited liability company agreement of
any such subsidiary, and the Company has full power and authority to authorize,
issue and sell the Offered Securities as contemplated by this Agreement.

     (k) This Agreement has been duly authorized, executed and delivered by the
Company.

     (l) Except as disclosed in the Prospectus, the Company and its subsidiaries
have good and marketable title to all real properties and all other properties
and assets owned by them, in each case free from liens, encumbrances and defects
that would materially affect the value thereof or materially interfere with the
use made or to be made thereof by them; and except as disclosed in the
Prospectus, the Company and its subsidiaries hold any leased real or personal
property under valid and enforceable leases with no exceptions that would
materially interfere with the use made or to be made thereof by them.

     (m) The Company and its subsidiaries possess adequate certificates,
authorities or permits issued by appropriate governmental agencies or bodies
necessary to conduct the business now operated by them and have not received any
notice of proceedings relating to the revocation or modification of any such
certificate, authority or permit that, if determined adversely to the Company or
any of its subsidiaries, would individually or in the aggregate have a Material
Adverse Effect.

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     (n) No labor dispute with the employees of the Company or any subsidiary
exists or, to the knowledge of the Company, is imminent that might have a
Material Adverse Effect.

     (o) The Company and its subsidiaries own, possess or can acquire on
reasonable terms, adequate trademarks, trade names and other rights to
inventions, know_how, patents, copyrights, confidential information and other
intellectual property (collectively, "intellectual property rights") necessary
to conduct the business now operated by them, or presently employed by them, and
have not received any notice of infringement of or conflict with asserted rights
of others with respect to any intellectual property rights that, if determined
adversely to the Company or any of its subsidiaries, would individually or in
the aggregate have a Material Adverse Effect.

     (p) Except as disclosed in the Prospectus, neither the Company nor any of
its subsidiaries is in violation of any statute, any rule, regulation, decision
or order of any governmental agency or body or any court, domestic or foreign,
relating to the use, disposal or release of hazardous or toxic substances or
relating to the protection or restoration of the environment or human exposure
to hazardous or toxic substances (collectively, "environmental laws"), owns or
operates any real property contaminated with any substance that is subject to
any environmental laws, is liable for any off_site disposal or contamination
pursuant to any environmental laws, or is subject to any claim relating to any
environmental laws, which violation, contamination, liability or claim would
individually or in the aggregate have a Material Adverse Effect; and the Company
is not aware of any pending investigation which might lead to such a claim.

     (q) Except as disclosed in the Prospectus, there are no pending actions,
suits or proceedings against or affecting the Company, any of its subsidiaries
or any of their respective properties that, if determined adversely to the
Company or any of its subsidiaries, would individually or in the aggregate have
a Material Adverse Effect, or would materially and adversely affect the ability
of the Company to perform its obligations under this Agreement, or which are
otherwise material in the context of the sale of the Offered Securities; and no
such actions, suits or proceedings are threatened or, to the Company's
knowledge, contemplated.

     (r) The financial statements included in each Registration Statement and
the Prospectus present fairly the financial position of the Company and its
consolidated subsidiaries as of the dates shown and their results of operations
and cash flows for the periods shown, and such financial statements have been
prepared in conformity with the generally accepted accounting principles in the
United States applied on a consistent basis; and the assumptions used in
preparing the pro forma financial statements included in each Registration
Statement and the Prospectus provide a reasonable basis for presenting the
significant effects directly attributable to the transactions or events
described therein, the related pro forma adjustments give appropriate effect to
those assumptions, and the pro forma columns therein reflect the proper
application of those adjustments to the corresponding historical financial
statement amounts.

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     (s) Except as disclosed in the Prospectus, since the date of the latest
audited financial statements included in the Prospectus there has been no
material adverse change, nor any development or event involving a prospective
material adverse change, in the condition (financial or other), business,
properties or results of operations of the Company and its subsidiaries taken as
a whole, and, except as disclosed in or contemplated by the Prospectus, there
has been no dividend or distribution of any kind declared, paid or made by the
Company on any class of its capital stock.

     (t) Furthermore, the Company represents and warrants to the Underwriters
that (i) the Registration Statement, the Prospectus and any preliminary
prospectus comply, and any further amendments or supplements thereto will
comply, with any applicable laws or regulations of foreign jurisdictions in
which the Prospectus or any preliminary prospectus, as amended or supplemented,
if applicable, are distributed in connection with the Directed Share Program,
and that (ii) no authorization, approval, consent, license, order, registration
or qualification of or with any government, governmental instrumentality or
court, other than such as have been obtained, is necessary under the securities
law and regulations of foreign jurisdictions in which the Directed Shares are
offered outside the United States.

     (u) The Company has not offered, or caused the Underwriters to offer, any
Offered Securities to any person pursuant to the Directed Share Program with the
specific intent to unlawfully influence (i) a customer or supplier of the
Company to alter the customer's or supplier's level or type of business with the
Company or (ii) a trade journalist or publication to write or publish favorable
information about the Company or its products.

     (v) The Company has the authorized, issued and outstanding capitalization
as of December 31, 1999 set forth in the prospectus under the heading
"Capitalization".

     (w) There are no parties that have rights to register any securities of the
Company, other than Allegra Capital Partners III, L.P., Allegra Capital Partners
IV, L.P. and Abbott Capital 1330 Investors I, L.P., each of which has waived
such rights by executing the Lock-Up Agreement dated the date hereof,
substantially in the form of Exhibit A attached hereto.

     (x) The Company maintains a system of internal accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management's general or specific authorization; (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to
maintain accountability for assets; (iii) access to assets is permitted only in
accordance with management's general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

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     (y) All material tax returns required to be filed by the Company and any of
its subsidiaries in any jurisdiction have been filed or have properly been
extended, and all material taxes, including withholding taxes, penalties and
interest, assessments, fees and other charges due pursuant to such returns or
pursuant to any assessment received by the Company or any of its subsidiaries
have been paid, other than those which are being contested in good faith and for
which adequate reserves have been provided. There are no transfer taxes or other
similar fees or charges under federal law or the laws of any state, or any
political subdivision thereof, required to be paid in connection with the
execution and delivery of this Agreement by the Company or the issuance by the
Company or the sale by the Company of the Offered Securities, except for fees or
charges that may be required to be paid in connection with applicable blue sky
laws, which fees and charges the Company hereby agrees to pay.

     (z) PricewaterhouseCoopers LLC are independent public accountants with
respect to the Company and its subsidiaries as required by the Act and the Rules
and Regulations.

     (aa) The statements in the Prospectus under the heading "Certain
Relationships and Related Transactions" set forth all existing agreements,
arrangements, understanding or transactions, or proposed agreements,
arrangements, understandings or transactions, between or among the Company, on
the one hand, and any officer, director or stockholder of the Company, or with
any partner, affiliate or associate of any of the forgoing persons or entities,
on the other hand, required to be set forth or described thereunder.

     (bb) The Company is not and, after giving effect to the offering and sale
of the Offered Securities and the application of the proceeds thereof as
described in the Prospectus, will not be, an "investment company" or a company
"controlled" by and "investment company" as such term is defined in the
Investment Company Act of 1940, as amended, and the rules and regulations of the
Commission thereunder.

          3. Purchase, Sale and Delivery of Offered Securities. On the basis of
the representations, warranties and agreements herein contained, but subject to
the terms and conditions herein set forth, the Company agrees to sell to the
Underwriters, and the Underwriters agree, severally and not jointly, to purchase
from the Company, at a purchase price of $13.95 per share, the respective
numbers of shares of Firm Securities set forth opposite the names of the
Underwriters in Schedule A hereto.

          The Company will deliver the Firm Securities to the Representatives
for the accounts of the Underwriters, against payment of the purchase price in
Federal (same day) funds by official bank check or checks or wire transfer to an
account at a bank acceptable to Credit Suisse First Boston Corporation ("CSFBC")
drawn to the order of the Company at the office of Simpson Thacher & Bartlett,
at 10:00 A.M., New York time, on August 2, 2000, or at such other time not later
than seven full business days thereafter as CSFBC and the Company determine,
such time being herein referred to as the "First Closing Date". For purposes of
Rule 15c6-1 under the Securities Exchange Act of 1934, the First Closing Date
(if later than the otherwise applicable settlement date) shall be the settlement
date for payment of funds and delivery of

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     securities for all the Offered Securities sold pursuant to the offering.
     The Firm Securities so to be delivered will be in definitive form, in such
     denominations and registered in such names as CSFBC requests and will be
     made available for checking and packaging at the above office of Simpson
     Thacher & Bartlett at least 24 hours prior to the First Closing Date.

          In addition, upon written notice from CSFBC given to the Company from
time to time not more than 30 days subsequent to the date of the Prospectus, the
Underwriters may purchase all or less than all of the Optional Securities at the
purchase price per Security to be paid for the Firm Securities. The Company
agrees to sell to the Underwriters the number of shares of Optional Securities
specified in such notice and the Underwriters agree, severally and not jointly,
to purchase such Optional Securities. Such Optional Securities shall be
purchased for the account of each Underwriter in the same proportion as the
number of shares of Firm Securities set forth opposite such Underwriter's name
bears to the total number of shares of Firm Securities (subject to adjustment by
CSFBC to eliminate fractions) and may be purchased by the Underwriters only for
the purpose of covering over_allotments made in connection with the sale of the
Firm Securities. No Optional Securities shall be sold or delivered unless the
Firm Securities previously have been, or simultaneously are, sold and delivered.
The right to purchase the Optional Securities or any portion thereof may be
exercised from time to time and to the extent not previously exercised may be
surrendered and terminated at any time upon notice by CSFBC to the Company.

          Each time for the delivery of and payment for the Optional Securities,
being herein referred to as an "Optional Closing Date", which may be the First
Closing Date (the First Closing Date and each Optional Closing Date, if any,
being sometimes referred to as a "Closing Date"), shall be determined by CSFBC
but shall be not later than five full business days after written notice of
election to purchase Optional Securities is given. The Company will deliver the
Optional Securities being purchased on each Optional Closing Date to the
Representatives for the accounts of the several Underwriters, against payment of
the purchase price therefor in Federal (same day) funds by official bank check
or checks or wire transfer to an account at a bank acceptable to CSFBC drawn to
the order of the Company, at the above office of Simpson Thacher & Bartlett. The
certificates for the Optional Securities being purchased on each Optional
Closing Date will be in definitive form, in such denominations and registered in
such names as CSFBC requests upon reasonable notice prior to such Optional
Closing Date and will be made available for checking and packaging at the above
office of Simpson Thacher & Bartlett at a reasonable time in advance of such
Optional Closing Date.

          4. Offering by Underwriters. It is understood that the several
Underwriters propose to offer the Offered Securities for sale to the public as
set forth in the Prospectus.

          5. Certain Agreements of the Company. The Company agrees with the
several Underwriters that:

          (a) If the Effective Time of the Initial Registration Statement is
     prior to the execution and delivery of this Agreement, the Company will
     file the Prospectus with the Commission pursuant to and in accordance with
     subparagraph (1) (or, if applicable and if consented to by CSFBC,
     subparagraph (4)) of Rule 424(b) not later than the earlier of (A)

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     the second business day following the execution and delivery of this
     Agreement or (B) the fifteenth business day after the Effective Date of the
     Initial Registration Statement. The Company will advise CSFBC promptly of
     any such filing pursuant to Rule 424(b). If the Effective Time of the
     Initial Registration Statement is prior to the execution and delivery of
     this Agreement and an additional registration statement is necessary to
     register a portion of the Offered Securities under the Act but the
     Effective Time thereof has not occurred as of such execution and delivery,
     the Company will file the additional registration statement or, if filed,
     will file a post_effective amendment thereto with the Commission pursuant
     to and in accordance with Rule 462(b) on or prior to 10:00 P.M., New York
     time, on the date of this Agreement or, if earlier, on or prior to the time
     the Prospectus is printed and distributed to any Underwriter, or will make
     such filing at such later date as shall have been consented to by CSFBC.

          (b) The Company will advise CSFBC promptly of any proposal to amend or
     supplement the initial or any additional registration statement as filed or
     the related prospectus or the Initial Registration Statement, the
     Additional Registration Statement (if any) or the Prospectus and will not
     effect such amendment or supplementation without CSFBC's consent; and the
     Company will also advise CSFBC promptly of the effectiveness of each
     Registration Statement (if its Effective Time is subsequent to the
     execution and delivery of this Agreement) and of any amendment or
     supplementation of a Registration Statement or the Prospectus and of the
     institution by the Commission of any stop order proceedings in respect of a
     Registration Statement and will use its best efforts to prevent the
     issuance of any such stop order and to obtain as soon as possible its
     lifting, if issued.

          (c) If, at any time when a prospectus relating to the Offered
     Securities is required to be delivered under the Act in connection with
     sales by any Underwriter or dealer, any event occurs as a result of which
     the Prospectus as then amended or supplemented would include an untrue
     statement of a material fact or omit to state any material fact necessary
     to make the statements therein, in the light of the circumstances under
     which they were made, not misleading, or if it is necessary at any time to
     amend the Prospectus to comply with the Act, the Company will promptly
     notify CSFBC of such event and will promptly prepare and file with the
     Commission, at its own expense, an amendment or supplement which will
     correct such statement or omission or an amendment which will effect such
     compliance. Neither CSFBC's consent to, nor the Underwriters' delivery of,
     any such amendment or supplement shall constitute a waiver of any of the
     conditions set forth in Section 6.

          (d) As soon as practicable, but not later than the Availability Date
     (as defined below), the Company will make generally available to its
     securityholders an earnings statement covering a period of at least 12
     months beginning after the Effective Date of the Initial Registration
     Statement (or, if later, the Effective Date of the Additional Registration
     Statement) which will satisfy the provisions of Section 11(a) of the Act.
     For the purpose of the preceding sentence, "Availability Date" means the
     45th day after the end of the fourth fiscal quarter following the fiscal
     quarter that includes such Effective Date, except

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     that, if such fourth fiscal quarter is the last quarter of the Company's
     fiscal year, "Availability Date" means the 90th day after the end of such
     fourth fiscal quarter.

          (e) The Company will furnish to the Representatives copies of each
     Registration Statement (four of which will be signed and will include all
     exhibits), each related preliminary prospectus, and, so long as a
     prospectus relating to the Offered Securities is required to be delivered
     under the Act in connection with sales by any Underwriter or dealer, the
     Prospectus and all amendments and supplements to such documents, in each
     case in such quantities as CSFBC requests. The Prospectus shall be so
     furnished on or prior to 3:00 P.M., New York time, on the business day
     following the later of the execution and delivery of this Agreement or the
     Effective Time of the Initial Registration Statement. All other documents
     shall be so furnished as soon as available. The Company will pay the
     expenses of printing and distributing to the Underwriters all such
     documents.

          (f) The Company will arrange for the qualification of the Offered
     Securities for sale under the laws of such jurisdictions as CSFBC
     designates and will continue such qualifications in effect so long as
     required for the distribution; provided, however, that in connection
     therewith the Company shall not be required to qualify as a foreign
     corporation or to file a general consent to service of process in any
     jurisdiction.

          (g) During the period of five years hereafter, the Company will
     furnish to the Representatives and, upon request, to each of the other
     Underwriters, as soon as practicable after the end of each fiscal year, a
     copy of its annual report to stockholders for such year; and the Company
     will furnish to the Representatives (i) as soon as available, a copy of
     each report and any definitive proxy statement of the Company filed with
     the Commission under the Securities Exchange Act of 1934 or mailed to
     stockholders, and (ii) from time to time, such other information concerning
     the Company as CSFBC may reasonably request.

          (h) The Company will pay all expenses incident to the performance of
     its obligations under this Agreement, for any filing fees and other
     expenses (including fees and disbursements of counsel) incurred in
     connection with qualification of the Offered Securities for sale under the
     laws of such jurisdictions as CSFBC designates, for the filing fee incident
     to, and the reasonable fees and disbursements of counsel to the
     Underwriters in connection with, the review by the National Association of
     Securities Dealers, Inc. ("NASD") of the Offered Securities, for any travel
     expenses of the Company's officers and employees and any other expenses of
     the Company in connection with attending or hosting meetings with
     prospective purchasers of the Offered Securities and for expenses incurred
     in distributing preliminary prospectuses and the Prospectus (including any
     amendments and supplements thereto) to the Underwriters.

          (i) For a period of 180 days after the date of the initial public
     offering of the Offered Securities, the Company will not offer, sell,
     contract to sell, announce its intention to sell, pledge or otherwise
     dispose of, directly or indirectly, or file with the Commission a
     registration statement under the Act relating to, any additional shares of
     its Securities or

<PAGE>
                                                                              12

     securities convertible into or exchangeable or exercisable for any shares
     of its Securities, or publicly disclose the intention to make any such
     offer, sale, pledge, disposition or filing, without the prior written
     consent of CSFBC, except (i) issuances of Securities pursuant to the
     conversion or exchange of the Company's preferred stock or the exercise of
     options, in each case outstanding on the date hereof, (ii) grants of stock
     options pursuant to stock option plans in effect on the date hereof and the
     issuance of securities pursuant to the exercise of such stock options,
     (iii) issuances of Securities to participants in any employee stock
     purchase plan in effect on the date hereof, (iv) issuances of Securities in
     connection with strategic acquisitions or alliances so long as the
     recipients of such Securities enter into the restrictions on the
     disposition of such Securities set forth in this Section 5(i) for the
     remainder of the 180-day period set forth in this Section 5(i) and (v)
     filings of registration statements on Form S-8 with the Commission
     registering the shares of Common Stock issuable under its stock option and
     employee stock purchase plans in effect on the date hereof.

          (j) The Company will (i) enforce the terms of each Lock-up Agreement
     (as hereinafter defined), and (ii) issue stop-transfer instructions to the
     transfer agent for the Securities with respect to any transaction or
     contemplated transaction that would constitute a breach of or default under
     the applicable Lock-up Agreement. In addition, except with the prior
     written consent of CSFBC, the Company agrees (i) not to amend or terminate,
     or waive any right under, any Lock-up Agreement, or take any other action
     that would directly or indirectly have the same effect as an amendment or
     termination, or waiver of any right under any Lock-up Agreement, that would
     permit the holder of any Securities, or any securities convertible into, or
     exercisable or exchangeable for, Securities, to make any short sale of,
     grant any option for the purchase of, or otherwise transfer or dispose of,
     any such Securities or other securities, prior to the expiration of the 180
     days after the date of the Prospectus, and (ii) not consent to any sale,
     short sale, grant of an option for the purchase of, or other disposition or
     transfer of shares of Securities, or securities convertible into or
     exercisable or exchangeable for Securities, subject to a Lock-Up Agreement.

          (k) In connection with the Directed Share Program, the Company will
     ensure that the Directed Shares will be restricted to the extent required
     by the NASD or the NASD rules from sale, transfer, assignment, pledge or
     hypothecation for a period of three months following the date of the
     effectiveness of the Registration Statement. The Designated Underwriter
     will notify the Company as to which Participants will need to be so
     restricted. The Company will direct the transfer agent to place stop
     transfer restrictions upon such securities for such period of time.

          (l) The Company will pay all fees and disbursements of counsel
     incurred by the Underwriters in connection with the Directed Share Program
     and stamp duties, similar taxes or duties or other taxes, if any, incurred
     by the underwriters in connection with the Directed Share Program.
     Furthermore, the company covenants with the Underwriters that the company
     will comply with all applicable securities and other applicable laws, rules
     and

<PAGE>
                                                                              13

     regulations in each foreign jurisdiction in which the Directed Shares are
     offered in connection with the Directed Share Program.

          6. Conditions of the Obligations of the Underwriters. The obligations
of the several Underwriters to purchase and pay for the Firm Securities on the
First Closing Date and the Optional Securities to be purchased on each Optional
Closing Date will be subject to the accuracy of the representations and
warranties on the part of the Company herein, to the accuracy of the statements
of Company officers made pursuant to the provisions hereof, to the performance
by the Company of its obligations hereunder and to the following additional
conditions precedent:

          (a) The Representatives shall have received a letter, dated the date
     of delivery thereof (which, if the Effective Time of the Initial
     Registration Statement is prior to the execution and delivery of this
     Agreement, shall be on or prior to the date of this Agreement or, if the
     Effective Time of the Initial Registration Statement is subsequent to the
     execution and delivery of this Agreement, shall be prior to the filing of
     the amendment or post_effective amendment to the registration statement to
     be filed shortly prior to such Effective Time), from PricewaterhouseCoopers
     LLP to the effect that they are independent accountants with respect to the
     Company within the meaning of the Securities Act of 1933 and the applicable
     rules and regulations thereunder adopted by the SEC and stating to the
     effect that:

               (i) in their opinion the financial statements examined by them
          and included in the Registration Statements comply as to form in all
          material respects with the applicable accounting requirements of the
          Act and the related published Rules and Regulations;

               (ii) they have performed the procedures specified by the American
          Institute of Certified Public Accountants for a review of interim
          financial information as described in Statement of Auditing Standards
          No. 71, Interim Financial Information, on the unaudited financial
          statements included in the Registration Statements;

               (iii) on the basis of the review referred to in clause (ii)
          above, a reading of the latest available interim financial data of the
          Company, inquiries of officials of the Company who have responsibility
          for financial and accounting matters and other specified procedures,
          nothing came to their attention that caused them to believe that:

                    (A) the unaudited financial data included in the
               Registration Statements do not comply as to form in all material
               respects with the applicable accounting requirements of the Act
               and the related published Rules and Regulations or any material
               modifications should be made to such unaudited financial data and
               summary of earnings for them to be stated on a basis
               substantially consistent with the audited financial statements
               included in the Registration Statement;

<PAGE>
                                                                              14

                    (B) at the date of the latest available balance sheet read
               by such accountants, or at a subsequent specified date not more
               than three business days prior to the date of this Agreement,
               there was any change in the capital stock or any increase in
               short_term indebtedness or long_term debt of the Company and its
               consolidated subsidiaries or, at the date of the latest available
               balance sheet read by such accountants, there was any decrease in
               consolidated net current assets or net assets, as compared with
               amounts shown on the latest balance sheet included in the
               Prospectus; or

                    (C) for the period from the closing date of the latest
               income statement included in the Prospectus to the closing date
               of the latest available income statement read by such accountants
               there were any decreases, as compared with the corresponding
               period of the previous year, in consolidated net revenues or net
               operating income or in the total or per share amounts of
               consolidated income before extraordinary items or net income;

               except in all cases set forth in clauses (A) and (B) above for
               changes, increases or decreases which the Prospectus discloses
               have occurred or may occur or which are described in such letter;
               and

               (iv) they have compared specified dollar amounts (or percentages
          derived from such dollar amounts) and other financial information
          contained in the Registration Statements (in each case to the extent
          that such dollar amounts, percentages and other financial information
          are derived from the general accounting records of the Company and its
          subsidiaries subject to the internal controls of the Company's
          accounting system or are derived directly from such records by
          analysis or computation) with the results obtained from inquiries, a
          reading of such general accounting records and other procedures
          specified in such letter and have found such dollar amounts,
          percentages and other financial information to be in agreement wish
          such results, except as otherwise specified in such letter.

               (v) they proved the arithmetic accuracy of the application of the
          pro forma adjustments to the historical amounts as set forth in the
          Registration Statement under the captions "Summary Consolidated
          Financial Data", "Capitalization", "Dilution" and "Management's
          Discussion and Analysis of Financial Condition and Results of
          Operations".

          For purposes of this subsection, (i) if the Effective Time of the
     Initial Registration Statement is subsequent to the execution and delivery
     of this Agreement, "Registration Statements" shall mean the initial
     registration statement as proposed to be amended by the amendment or
     post-effective amendment to be filed shortly prior to its Effective Time,
     (ii) if the Effective Time of the Initial Registration Statement is prior
     to the execution and delivery of this Agreement but the Effective Time of
     the Additional Registration is

<PAGE>
                                                                              15

     subsequent to such execution and delivery, "Registration Statements" shall
     mean the Initial Registration Statement and the additional registration
     statement as proposed to be filed or as proposed to be amended by the
     post-effective amendment to be filed shortly prior to its Effective Time,
     and (iii) "Prospectus" shall mean the prospectus included in the
     Registration Statements.

          (b) If the Effective Time of the Initial Registration Statement is not
     prior to the execution and delivery of this Agreement, such Effective Time
     shall have occurred not later than 10:00 P.M., New York time, on the date
     of this Agreement or such later date as shall have been consented to by
     CSFBC. If the Effective Time of the Additional Registration Statement (if
     any) is not prior to the execution and delivery of this Agreement, such
     Effective Time shall have occurred not later than 10:00 P.M., New York
     time, on the date of this Agreement or, if earlier, the time the Prospectus
     is printed and distributed to any Underwriter, or shall have occurred at
     such later date as shall have been consented to by CSFBC. If the Effective
     Time of the Initial Registration Statement is prior to the execution and
     delivery of this Agreement, the Prospectus shall have been filed with the
     Commission in accordance with the Rules and Regulations and Section 5(a) of
     this Agreement. Prior to such Closing Date, no stop order suspending the
     effectiveness of a Registration Statement shall have been issued and no
     proceedings for that purpose shall have been instituted or, to the
     knowledge of the Company or the Representatives, shall be contemplated by
     the Commission.

          (c) Subsequent to the execution and delivery of this Agreement, there
     shall not have occurred (i) any change, or any development or event
     involving a prospective change, in the condition (financial or other),
     business, properties or results of operations of the Company and its
     subsidiaries taken as one enterprise which, in the judgment of a majority
     in interest of the Underwriters including the Representatives, is material
     and adverse and makes it impractical or inadvisable to proceed with
     completion of the public offering or the sale of and payment for the
     Offered Securities; (ii) any downgrading in the rating of any debt
     securities or preferred stock of the Company by any "nationally recognized
     statistical rating organization" (as defined for purposes of Rule 436(g)
     under the Act), or any public announcement that any such organization has
     under surveillance or review its rating of any debt securities or preferred
     stock of the Company (other than an announcement with positive implications
     of a possible upgrading, and no implication of a possible downgrading, of
     such rating); (iii) any material suspension or material limitation of
     trading in securities generally on the New York Stock Exchange or the
     Nasdaq Stock Market's National Market, or any setting of minimum prices for
     trading on such exchange, or any suspension of trading of any securities of
     the Company on any exchange or in the over_the_counter market; (iv) any
     banking moratorium declared by U.S. Federal or New York authorities; or (v)
     any outbreak or escalation of major hostilities in which the United States
     is involved, any declaration of war by Congress or any other substantial
     national or international calamity or emergency if, in the judgment of a
     majority in interest of the Underwriters including the Representatives, the
     effect of any such outbreak, escalation, declaration, calamity or emergency
     makes it impractical or inadvisable to proceed with completion of the
     public offering or the sale of and payment for the Offered Securities.

<PAGE>
                                                                              16

          (d) The Representatives shall have received an opinion, dated such
     Closing Date, of Reboul, MacMurray, Hewitt, Maynard & Kristol, counsel for
     the Company, to the effect that:

               (i) The Company has been duly incorporated and is an existing
          corporation in good standing under the laws of the State of Delaware,
          with corporate power and authority to own its properties and conduct
          its business as described in the Prospectus; and the Company is duly
          qualified to do business as a foreign corporation in good standing in
          all other jurisdictions in which its ownership or lease of property or
          the conduct of its business requires such qualification, except where
          the failure to be so qualified would not have a Material Adverse
          Effect;

               (ii) Each subsidiary of the Company has been duly incorporated or
          organized, as the case my be, and is an existing corporation in good
          standing under the laws of the jurisdiction of its incorporation or
          organization, with power and authority (corporate and other) to own
          its properties and conduct its business as described in the
          Prospectus; and each subsidiary of the Company is duly qualified to do
          business as a foreign corporation or limited liability company, as the
          case may be, in good standing in all other jurisdictions in which its
          ownership or lease of property or the conduct of its business requires
          such qualification, except where the failure to be so qualified would
          not have a Material Adverse Effect; all of the issued and outstanding
          ownership interests of each subsidiary of the Company has been duly
          authorized and validly issued; and all the ownership interests of each
          subsidiary are owned directly by the Company and, except as described
          in the Prospectus, are free from liens, encumbrances and defects.

               (iii) The Offered Securities delivered on such Closing Date and
          all other outstanding shares of the Common Stock of the Company have
          been duly authorized and validly issued, are fully paid and
          nonassessable and conform to the description thereof contained in the
          Prospectus; and the stockholders of the Company have no preemptive
          rights arising by operation of law, under the Company's certificate of
          incorporation or bylaws or otherwise with respect to the Securities;

               (iv) Except for the Registration Rights Agreement, dated as of
          July 23, 1998, between the Company and the investors named therein,
          there are no contracts, agreements or understandings known to such
          counsel between the Company and any person granting such person the
          right to require the Company to file a registration statement under
          the Act with respect to any securities of the Company owned or to be
          owned by such person or to require the Company to include such
          securities in the securities registered pursuant to the Registration
          Statement or in any securities being registered pursuant to any other
          registration statement filed by the Company under the Act;

<PAGE>
                                                                              17

               (v) No consent, approval, authorization or order of, or filing
          with, any governmental agency or body or any court is required for the
          consummation of the transactions contemplated by this Agreement in
          connection with the issuance or sale of the Offered Securities by the
          Company, except such as have been obtained and made under the Act and
          such as may be required under state securities laws;

               (vi) The execution, delivery and performance of this Agreement
          and the issuance and sale of the Offered Securities will not result in
          a breach or violation of any of the terms and provisions of, or
          constitute a default under, any statute, any rule, regulation or order
          of any governmental agency or body or any court having jurisdiction
          over the Company or any subsidiary of the Company or any of their
          properties, or any agreement or instrument filed as an exhibit to the
          Registration Statement to which the Company or any such subsidiary is
          a party or by which the Company or any such subsidiary is bound or to
          which any of the properties of the Company or any such subsidiary is
          subject, or the charter or by_laws of the Company or certificate of
          formation or limited liability company agreement any such subsidiary,
          and the Company has full power and authority to authorize, issue and
          sell the Offered Securities as contemplated by this Agreement;

               (vii) The Initial Registration Statement was declared effective
          under the Act as of the date and time specified in such opinion, the
          Additional Registration Statement (if any) was filed and became
          effective under the Act as of the date and time (if determinable)
          specified in such opinion, the Prospectus either was filed with the
          Commission pursuant to the subparagraph of Rule 424(b) specified in
          such opinion on the date specified therein or was included in the
          Initial Registration Statement or the Additional Registration
          Statement (as the case may be), and, to the best of the knowledge of
          such counsel, no stop order suspending the effectiveness of a
          Registration Statement or any part thereof has been issued and no
          proceedings for that purpose have been instituted or are pending or
          contemplated under the Act, and each Registration Statement and the
          Prospectus, and each amendment or supplement thereto, as of their
          respective effective or issue dates, complied as to form in all
          material respects with the requirements of the Act and the Rules and
          Regulations; such counsel have no reason to believe that any part of a
          Registration Statement or any amendment thereto, as of its effective
          date or as of such Closing Date, contained any untrue statement of a
          material fact or omitted to state any material fact required to be
          stated therein or necessary to make the statements therein not
          misleading or that the Prospectus or any amendment or supplement
          thereto, as of its issue date or as of such Closing Date, contained
          any untrue statement of a material fact or omitted to state any
          material fact necessary in order to make the statements therein, in
          the light of the circumstances under which they were made, not
          misleading; the descriptions in the Registration Statements and
          Prospectus of statutes, legal and governmental proceedings and
          contracts and other documents are accurate in all material respects
          and fairly present the information required to be shown; and such
          counsel do not know of any legal or governmental proceedings required
          to be described in a Registration Statement or the Prospectus which
          are not described as required or of any contracts or documents of a
          character required to be described in

<PAGE>
                                                                              18

          a Registration Statement or the Prospectus or to be filed as exhibits
          to a Registration Statement which are not described and filed as
          required; it being understood that such counsel need express no
          opinion as to the financial statements or other financial data
          contained in the Registration Statements or the Prospectus; and

               (viii) This Agreement has been duly authorized, executed and
          delivered by the Company.

          (e) The Representatives shall have received from Simpson Thacher &
     Bartlett, counsel for the Underwriters, such opinion or opinions, dated
     such Closing Date, with respect to the incorporation of the Company, the
     validity of the Offered Securities delivered on such Closing Date, the
     Registration Statements, the Prospectus and other related matters as the
     Representatives may require, and the Company shall have furnished to such
     counsel such documents as they request for the purpose of enabling them to
     pass upon such matters.

          (f) The Representatives shall have received a certificate, dated such
     Closing Date, of the President or any Vice President and a principal
     financial or accounting officer of the Company in which such officers, to
     the best of their knowledge after reasonable investigation, shall state
     that: the representations and warranties of the Company in this Agreement
     are true and correct; the Company has complied with all agreements and
     satisfied all conditions on its part to be performed or satisfied hereunder
     at or prior to such Closing Date; no stop order suspending the
     effectiveness of any Registration Statement has been issued and no
     proceedings for that purpose have been instituted or are contemplated by
     the Commission; the Additional Registration Statement (if any) satisfying
     the requirements of subparagraphs (1) and (3) of Rule 462(b) was filed
     pursuant to Rule 462(b), including payment of the applicable filing fee in
     accordance with Rule 111(a) or (b) under the Act, prior to the time the
     Prospectus was printed and distributed to any Underwriter; and, subsequent
     to the dates of the most recent financial statements in the Prospectus,
     there has been no material adverse change, nor any development or event
     involving a prospective material adverse change, in the condition
     (financial or other), business, properties or results of operations of the
     Company and its subsidiaries taken as a whole except as set forth in or
     contemplated by the Prospectus or as described in such certificate.

          (g) The Representatives shall have received a letter, dated such
     Closing Date, of PricewaterhouseCoopers LLC which meets the requirements of
     subsection (a) of this Section, except that the specified date referred to
     in such subsection will be a date not more than three days prior to such
     Closing Date for the purposes of this subsection.

          (h) On or prior to the date of this Agreement, the Representatives
     shall have received lockup letters, in the form attached hereto as Exhibit
     A (each, a "Lock-Up

<PAGE>
                                                                              19

     Agreement"), from each of the executive officers, directors, shareholders
     and optionholders of the Company identified on Schedule B attached hereto.

The Company will furnish the Representatives with such conformed copies of such
opinions, certificates, letters and documents as the Representatives reasonably
requests. CSFBC may in its sole discretion waive on behalf of the Underwriters
compliance with any conditions to the obligations of the Underwriters hereunder,
whether in respect of an Optional Closing Date or otherwise.

     7. Indemnification and Contribution. The Company will indemnify and hold
harmless each Underwriter, its partners, directors and officers and each person,
if any, who controls such Underwriter within the meaning of Section 15 of the
Act, against any losses, claims, damages or liabilities, joint or several, to
which such Underwriter may become subject, under the Act or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in any Registration Statement, the Prospectus, or
any amendment or supplement thereto, or any related preliminary prospectus, or
arise out of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse each Underwriter for any
legal or other expenses reasonably incurred by such Underwriter in connection
with investigating or defending any such loss, claim, damage, liability or
action as such expenses are incurred; provided, however, that the Company will
not be liable in any such case to the extent that any such loss, claim, damage
or liability arises out of or is based upon an untrue statement or alleged
untrue statement in or omission or alleged omission from any of such documents
in reliance upon and in conformity with written information furnished to the
Company by any Underwriter through the Representatives specifically for use
therein, it being understood and agreed that the only such information furnished
by any Underwriter consists of the information described as such in subsection
(b) below.

     The Company agrees to indemnify and hold harmless the Designated
Underwriter and each person, if any, who controls the Designated Underwriter
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act (the "Designated Entities"), from and against any and all
losses, claims, damages and liabilities (including, without limitation, any
legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) (i) caused by any untrue statement or
alleged untrue statement of a material fact contained in any material prepared
by or with the consent of the Company for distribution to Participants in
connection with the Directed Share Program or caused by any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading; (ii) caused by the
failure of any Participant to pay for and accept delivery of Directed Shares
that the Participant agreed to purchase; or (iii) related to, arising out of, or
in connection with the Directed Share Program, other than losses, claims,
damages or liabilities (or expenses relating thereto) that are finally
judicially determined to have resulted from the bad faith or gross negligence of
the Designated Entities.

<PAGE>
                                                                              20

     (b) Each Underwriter will severally and not jointly indemnify and hold
harmless the Company, its directors and officers and each person, if any who
controls the Company within the meaning of Section 15 of the Act, against any
losses, claims, damages or liabilities to which the Company may become subject,
under the Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
any Registration Statement, the Prospectus, or any amendment or supplement
thereto, or any related preliminary prospectus, or arise out of or are based
upon the omission or the alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with written information furnished to the
Company by such Underwriter through the Representatives specifically for use
therein, and will reimburse any legal or other expenses reasonably incurred by
the Company in connection with investigating or defending any such loss, claim,
damage, liability or action as such expenses are incurred, it being understood
and agreed that the only such information furnished by any Underwriter consists
of the following information in the Prospectus furnished on behalf of each
Underwriter: the concession and reallowance figures appearing in the fourth
paragraph and last paragraph under the caption "Underwriting."

     (c) Promptly after receipt by an indemnified party under this Section of
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
subsection (a) or (b) above, notify the indemnifying party of the commencement
thereof; but the omission so to notify the indemnifying party will not relieve
it from any liability which it may have to any indemnified party otherwise than
under subsection (a) or (b) above. In case any such action is brought against
any indemnified party and it notifies the indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein and, to
the extent that it may wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified
party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified
party under this Section for any legal or other expenses subsequently incurred
by such indemnified party in connection with the defense thereof other than
reasonable costs of investigation. Notwithstanding anything contained herein to
the contrary, if indemnity may be sought pursuant to the last paragraph in
Section 7 (a) hereof in respect of such action or proceeding, then in addition
to such separate firm for the indemnified parties, the indemnifying party shall
be liable for the reasonable fees and expenses of not more than one separate
firm (in addition to any local counsel) for the Designated Underwriter for the
defense of any losses, claims, damages and liabilities arising out of the
Directed Share Program, and all persons, if any, who control the Designated
Underwriter within the meaning of either Section 15 of the Act of Section 20 of
the Exchange Act. No indemnifying party shall, without the prior written consent
of the indemnified party, effect any settlement of any pending or threatened
action in respect of which any indemnified party is or could have been a party
and indemnity could have been sought hereunder by such indemnified party unless
such settlement (i) includes an unconditional release of such indemnified party
from all liability on any claims that are the subject matter of such action

<PAGE>
                                                                              21

and (ii) does not include a statement as to, or an admission of, fault,
culpability or a failure to act by or on behalf of an indemnified party.

     (d) If the indemnification provided for in this Section is unavailable or
insufficient to hold harmless an indemnified party under subsection (a) or (b)
above, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages or
liabilities referred to in subsection (a) or (b) above (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company on the
one hand and the Underwriters on the other from the offering of the Securities
or (ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Company on the one hand and the Underwriters on the other in connection with
the statements or omissions which resulted in such losses, claims, damages or
liabilities as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and the Underwriters on the
other shall be deemed to be in the same proportion as the total net proceeds
from the offering (before deducting expenses) received by the Company bear to
the total underwriting discounts and commissions received by the Underwriters.
The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company or the Underwriters and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission. The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first
sentence of this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim which is the subject of this
subsection (d). Notwithstanding the provisions of this subsection (d), no
Underwriter shall be required to contribute any amount in excess of the amount
by which the total price at which the Securities underwritten by it and
distributed to the public were offered to the public exceeds the amount of any
damages which such Underwriter has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Underwriters' obligations in
this subsection (d) to contribute are several in proportion to their respective
underwriting obligations and not joint.

     (e) The obligations of the Company under this Section shall be in addition
to any liability which the Company may otherwise have and shall extend, upon the
same terms and conditions, to each person, if any, who controls any Underwriter
within the meaning of the Act; and the obligations of the Underwriters under
this Section shall be in addition to any liability which the respective
Underwriters may otherwise have and shall extend, upon the same terms and
conditions, to each director of the Company, to each officer of the Company who
has signed a Registration Statement and to each person, if any, who controls the
Company within the meaning of the Act.

<PAGE>
                                                                              22

     8. Default of Underwriters. If any Underwriter or Underwriters default in
their obligations to purchase Offered Securities hereunder on either the First
or any Optional Closing Date and the aggregate number of shares of Offered
Securities that such defaulting Underwriter or Underwriters agreed but failed to
purchase does not exceed 10% of the total number of shares of Offered Securities
that the Underwriters are obligated to purchase on such Closing Date, CSFBC may
make arrangements satisfactory to the Company for the purchase of such Offered
Securities by other persons, including any of the Underwriters, but if no such
arrangements are made by such Closing Date, the non-defaulting Underwriters
shall be obligated severally, in proportion to their respective commitments
hereunder, to purchase the Offered Securities that such defaulting Underwriters
agreed but failed to purchase on such Closing Date. If any Underwriter or
Underwriters so default and the aggregate number of shares of Offered Securities
with respect to which such default or defaults occur exceeds 10% of the total
number of shares of Offered Securities that the Underwriters are obligated to
purchase on such Closing Date and arrangements satisfactory to CSFBC and the
Company for the purchase of such Offered Securities by other persons are not
made within 36 hours after such default, this Agreement will terminate without
liability on the part of any non-defaulting Underwriter or the Company, except
as provided in Section 9 (provided that if such default occurs with respect to
Optional Securities after the First Closing Date, this Agreement will not
terminate as to the Firm Securities or any Optional Securities purchased prior
to such termination). As used in this Agreement, the term "Underwriter" includes
any person substituted for an Underwriter under this Section. Nothing herein
will relieve a defaulting Underwriter from liability for its default.

     9. Survival of Certain Representations and Obligations. The respective
indemnities, agreements, representations, warranties and other statements of the
Company or its officers and of the several Underwriters set forth in or made
pursuant to this Agreement will remain in full force and effect, regardless of
any investigation, or statement as to the results thereof, made by or on behalf
of any Underwriter, the Company or any of their respective representatives,
officers or directors or any controlling person, and will survive delivery of
and payment for the Offered Securities. If this Agreement is terminated pursuant
to Section 8 or if for any reason the purchase of the Offered Securities by the
Underwriters is not consummated, the Company shall remain responsible for the
expenses to be paid or reimbursed by it pursuant to Section 5 and the respective
obligations of the Company and the Underwriters pursuant to Section 7 shall
remain in effect, and if any Offered Securities have been purchased hereunder
the representations and warranties in Section 2 and all obligations under
Section 5 shall also remain in effect. If the purchase of the Offered Securities
by the Underwriters is not consummated for any reason other than solely because
of the termination of this Agreement pursuant to Section 8 or the occurrence of
any event specified in clause (iii), (iv) or (v) of Section 6(c), the Company
will reimburse the Underwriters for all out_of_pocket expenses (including fees
and disbursements of counsel) reasonably incurred by them in connection with the
offering of the Offered Securities.

     10. Notices. All communications hereunder will be in writing and, if sent
to the Underwriters, will be mailed, delivered or sent by facsimile transmission
and confirmed to the Representatives, c/o Credit Suisse First Boston
Corporation, Eleven Madison Avenue, New York, N.Y. 10010_3629, Attention:
Investment Banking Department--Transactions Advisory Group, or, if sent to the
Company, will be mailed, delivered or sent by facsimile transmission and

<PAGE>
                                                                              23

confirmed to it at Lexent Inc., 3 New York Plaza, New York, NY 10004, Attention:
Chief Operating Officer; provided, however, that any notice to an Underwriter
pursuant to Section 7 will be mailed, delivered or sent by facsimile
transmission and confirmed to such Underwriter.

     11. Successors. This Agreement will inure to the benefit of and be binding
upon the parties hereto and their respective successors and the officers and
directors and controlling persons referred to in Section 7, and no other person
will have any right or obligation hereunder.

     12. Representation of Underwriters. The Representatives will act for the
several Underwriters in connection with this financing, and any action under
this Agreement taken by the Representatives jointly or by CSFBC will be binding
upon all the Underwriters.

     13. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.

     14. Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York, without regard to principles
of conflicts of laws.

     The Company hereby submits to the non-exclusive jurisdiction of the Federal
and state courts in the Borough of Manhattan in The City of New York in any suit
or proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby.

<PAGE>
                                                                              24

     If the foregoing is in accordance with the Representatives' understanding
of our agreement, kindly sign and return to the Company one of the counterparts
hereof, whereupon it will become a binding agreement between the Company and the
several Underwriters in accordance with its terms.

                               Very truly yours,

                                              LEXENT INC.

                                              By  /s/ KEVIN M. O'KANE
                                                  --------------------------
                                                  Name: Kevin M. O'Kane
                                                  Title: Vice Chairman and
                                                         Chief Operating Officer

The foregoing Underwriting Agreement is hereby
confirmed and accepted as of the date first above
 written.

         CREDIT SUISSE FIRST BOSTON CORPORATION
         CHASE SECURITIES INC.
         RAYMOND JAMES & ASSOCIATES

         Acting on behalf of themselves and as the
         Representatives of the several Underwriters

         By    CREDIT SUISSE FIRST BOSTON CORPORATION

         By /s/ HAROLD W. BOGLE
            -------------------
            Name: Harold W. Bogle
            Title:   Managing Director

<PAGE>

                                   SCHEDULE A

               Underwriter                                       Firm Securities
               -----------                                       ---------------

Credit Suisse First Boston Corporation ......................      2,685,000

Chase Securities Inc. .......................................      1,611,000

Raymond James & Associates, Inc. ............................      1,074,000

E*Offering Corp. ............................................         90,000

Fahnestock & Co. Inc. .......................................         90,000

Invemed Associates LLC ......................................         90,000

Prudential Securities Incorporated ..........................         90,000

Sands Brothers & Co., Ltd. ..................................         90,000

Shields & Company ...........................................         90,000

H.G. Wellington & Co. Inc. ..................................         90,000
                                                                   ---------
      Total .................................................      6,000,000
                                                                   =========

<PAGE>

                                   SCHEDULE B

                     Parties Delivering a Lock-Up Agreement

Directors and Executive Officers
--------------------------------

Charles T. Christ
Peter O. Crisp
Victor P. DeJoy
Joseph Haines
Thomas W. Hallagan
Alf T. Hansen
Nancy T. Huson
Kevin M. O'Kane
Hugh J. O'Kane, Jr.
L. White Matthews III
Sidney A. Sayovitz
Richard L. Schwob
Richard W. Smith
Jonathan H. Stern
Walter C. Teagle III

Stockholders
------------

Abbott Capital 1330 Investors L.L.P.
Allegra Capital Partners III, L.P.
Allegra Capital Partners IV, L.P.
Denis J. O'Kane
Hugh J. O'Kane, Jr. Irrevocable Trust H
  dated January 2, 1999
Hugh J. O'Kane, Jr. Irrevocable Trust A
  dated January 2, 1999
Hugh J. O'Kane, Jr. Irrevocable Trust K
  dated January 2, 1999
Hugh J. O'Kane, Jr. Irrevocable Trust J
  dated January 2, 1999
Kevin M. O'Kane, Jr. Irrevocable Living Trust I
  dated January 2, 1999
Kevin M. O'Kane, Jr. Irrevocable Living Trust II
  dated January 2, 1999
Hugh J. O'Kane, Jr. 2000 Grantor Retained Annuity Trust
Alf T. Hansen 2000 Grantor Retained Annuity Trust
Victor P. DeJoy Trust
Nicholas A. DeJoy Trust
W. Clark Teagle, IV Rev Trust (70H338)

<PAGE>

Trust FBO Clifton D. Teagle
  dated December 29, 1981 (794050)
Trust FBO Janet W. Teagle
  dated December 18, 1984 (795084)

Haines Family Charitable Remainder Trust for the benefit of Robert Palumbo and
Nina Palumbo
Haines Family Charitable Remainder Trust for the benefit of Douglas Haines and
Dawn Haines
Haines Family Charitable Remainder Trust for the benefit of Marie Palumbo
Haines Family Charitable Remainder Trust for the benefit of Joseph Haines and
Michele Haines

Optionholders
-------------

Rif Haffar

<PAGE>

                                    EXHIBIT A
                            Form of Lock-Up Agreement

                                                                   July __, 2000

Lexent Inc.
Three New York Plaza
New York, NY  10004

Credit Suisse First Boston Corporation
Chase Securities Inc.
Raymond James & Associates, Inc.
As Representatives of the Several Underwriters,
c/o Credit Suisse First Boston Corporation,
    Eleven Madison Avenue
    New York, NY  10010-3629

Dear Sirs:

          As an inducement to the Underwriters to execute the Underwriting
Agreement, pursuant to which an offering will be made that is intended to result
in the establishment of a public market for the Common Stock, par value $.001
per share (the "Securities"), of Lexent Inc. (the "Company"), the undersigned, a
stockholder of the Company, hereby agrees that from the date hereof and until
180 days after the public offering date set forth on the final prospectus used
to sell the Securities (the "Public Offering Date") pursuant to the Underwriting
Agreement, the undersigned will not offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, any shares of Securities or
securities convertible into or exchangeable or exercisable for any shares of
Securities, enter into a transaction which would have the same effect, or enter
into any swap, hedge or other arrangement that transfers, in whole or in part,
any of the economic consequences of ownership of the Securities, whether any
such aforementioned transaction is to be settled by delivery of the Securities
or such other securities, in cash or otherwise, or publicly disclose the
intention to make any such offer, sale, pledge or disposition, or to enter into
any such transaction, swap, hedge or other arrangement, without, in each case,
the prior written consent of Credit Suisse First Boston Corporation.
Furthermore, the undersigned hereby agrees that from the date hereof until 180
days after the Public Offering Date, the undersigned waives any and all
registration rights or similar rights with respect to any securities of the
Company under any agreement or understanding to which the undersigned is a
party.

          Any Securities received upon exercise of options granted to the
undersigned [insert for Allegra Capital Partners --, or Securities purchased
under the Directed Share Program (as defined in the Underwriting Agreement)]
will also be subject to this Agreement. Any Securities acquired by the
undersigned in the open market will not be subject to this Agreement. A transfer
of Securities to a family member or trust may be made, provided the transferee
agrees to be bound in writing by the terms of this Agreement.

                                      A-1

<PAGE>

          In furtherance of the foregoing, the Company and its transfer agent
and registrar are hereby authorized to decline to make any transfer of shares of
Securities if such transfer would constitute a violation or breach of this
Agreement.

          This Agreement shall be binding on the undersigned and the successors,
heirs, personal representatives and assigns of the undersigned. This Agreement
shall lapse and become null and void if the Public Offering Date shall not have
occurred on or before January __, 2001.

                                        Very truly yours,

                                        -------------------------------
                                        Name:

                                      A-2<PAGE>

                                                                     Exhibit 4.1

                             TAMPA ELECTRIC COMPANY

                                       and

                              THE BANK OF NEW YORK
                                   As Trustee

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

                          SECOND SUPPLEMENTAL INDENTURE

                           dated as of August 15, 2000

                           Supplementing the Indenture

                            dated as of July 1, 1998

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

                                  $150,000,000

                       7 3/8% REset Put Securities Due 2015

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                          PAGE

<S>                                                                                                    <C>
ARTICLE One Definitions and Other Provisions of General Application.........................................2

         Section 101. Definitions...........................................................................2

         Section 102. Section References....................................................................8

ARTICLE Two Designation and Terms of the Notes..............................................................8

         Section 201. Establishment of Series...............................................................8

         Section 202. Variations in Terms of Notes..........................................................8

         Section 203. Amount and Denominations; the Depositary..............................................8

         Section 204. Interest Rates, Interest Payment Dates and Interest Rate Periods......................9

         Section 205. Determination of Interest Rates......................................................11

         Section 206. Election and Determination of a Floating Interest Rate by the Company................12

         Section 207. Conversion Between Interest Rate Modes by the Company................................21

         Section 208. Automatic Tender of Notes on the Interest Rate Adjustment Date.......................22

         Section 209. Remarketing..........................................................................22

         Section 210. Purchase and Redemption of Notes.....................................................24

         Section 211. Form and Other Terms of the Notes....................................................25

ARTICLE Three The REPS Mode................................................................................26

         Section 301. Applicability of Article.............................................................26

</TABLE>

<PAGE>

                                TABLE OF CONTENTS

                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                          PAGE

<S>                                                                                                    <C>

         Section 302. Initial REPS Rate Period.............................................................26

         Section 303. Interest to REPS Remarketing Date....................................................26

         Section 304. Tender to and Remarketing by the Callholder..........................................26

         Section 305. Conversion or Redemption Following Election by the Callholder to Remarket............28

ARTICLE Four Additional Events of Default with Respect to the Notes........................................29

         Section 401. Definition...........................................................................29

ARTICLE Five Authentication and Delivery of the Notes......................................................29

         Section 501. Authentication and Delivery..........................................................29

ARTICLE Six Supplemental Indentures........................................................................29

         Section 601. Effect On Original Indenture.........................................................29

ARTICLE Seven Miscellaneous................................................................................30

         Section 701. Counterparts.........................................................................30

         Section 702. Recitals.............................................................................30

         Section 703. Governing Law........................................................................30

</TABLE>

<PAGE>

         This Second Supplemental Indenture, dated as of the 15th day of August,
2000 between Tampa Electric Company, a corporation duly organized and existing
under the laws of the State of Florida (hereinafter called the "COMPANY") and
having its principal office at TECO Plaza, 702 North Franklin Street, Tampa,
Florida 33602, and The Bank of New York, (hereinafter called the "TRUSTEE") and
having its principal corporate trust office at 101 Barclay Street, 21st Floor,
New York, New York, 10286.

                                   WITNESSETH:

         WHEREAS, the Company and the Trustee entered into an Indenture, dated
as of July 1, 1998 (the "ORIGINAL INDENTURE"), pursuant to which one or more
series of debt of the Company (the "SECURITIES") may be issued from time to
time; and

         WHEREAS, Section 201 of the Original Indenture permits the terms of any
series of Securities to be established in an indenture supplemental to the
Original Indenture; and

         WHEREAS, Section 901(7) of the Original Indenture provides that a
supplemental indenture may be entered into by the Company and the Trustee
without the consent of any Holders of the Securities to establish the form and
terms of the Securities of any series; and

         WHEREAS, the Company and the Trustee entered into a First Supplemental
Indenture, dated as of July 15, 1998 (the "FIRST SUPPLEMENTAL INDENTURE"),
pursuant to which the Company issued Remarketed Notes Due 2038 with an aggregate
principal amount of $50,000,000; and

         WHEREAS, the Company has requested the Trustee to join with it in the
execution and delivery of this Second Supplemental Indenture in order to
supplement and amend the Original Indenture by, among other things, establishing
the form and terms of one series of Securities to be known as the Company's
"7 3/8% REset Put Securities Due 2015" (the "NOTES") and amending and adding
certain provisions thereof for the benefit of the Holders of the Notes; and

         WHEREAS, the Company and the Trustee desire to enter into this Second
Supplemental Indenture for the purposes set forth in Sections 201 and 901 of the
Original Indenture as referred to above; and

         WHEREAS, the Company has furnished the Trustee with a Board Resolution
authorizing the execution of this Second Supplemental Indenture; and

         WHEREAS, all things necessary to make this Second Supplemental
Indenture a valid agreement of the Company and the Trustee and a valid
supplement to the Original Indenture have been done,

         NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSETH:

         For and in consideration of the premises and the purchase of the Notes
to be issued hereunder by holders thereof, the Company and the Trustee mutually
covenant and agree, for the equal and proportionate benefit of the respective
holders from time to time of the Notes, as follows:

<PAGE>

                                  ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 101.  DEFINITIONS

         All capitalized terms that are used herein and not otherwise defined
herein shall have the meanings assigned to them in the Original Indenture. The
Original Indenture together with this Second Supplemental Indenture are
hereinafter sometimes collectively referred to as the "INDENTURE."

         "APPLICABLE SPREAD" shall mean the lowest bid indication, expressed as
a spread (in the form of a percentage or in basis points) above the Base Rate,
obtained by the Callholder on the applicable Determination Date from the bids
quoted by up to five Reference Corporate Dealers for the full aggregate
outstanding principal amount of the Notes at the Dollar Price, but assuming (i)
an issue date equal to the applicable REPS Remarketing Date, with settlement on
such date without accrued interest, (ii) a maturity date equal to the next
succeeding Interest Rate Adjustment Date of the Notes, (iii) a stated annual
interest rate, payable semiannually on each Interest Payment Date, equal to the
Base Rate plus the spread bid by the applicable Reference Corporate Dealer, and
(iv) the benefit of any credit support provided by the Company, if the Company
elects to provide credit support. If fewer than five Reference Corporate Dealers
bid as described above, then the Applicable Spread shall be the lowest of such
bid indications obtained as described above. The REPS Coupon Reset Rate
announced by the Callholder, absent manifest error, shall be binding and
conclusive upon the Beneficial Owners and holders of the Notes, the Company and
the Trustee.

         "BASE RATE" shall mean the interest rate established by the Callholder,
after consultation with the Company, as the applicable "base rate" at
commencement of the applicable REPS Mode.

         "BENEFICIAL OWNER" shall mean, for Notes in book-entry form, the Person
who acquires an interest in the Notes, which is reflected on the records of the
Depositary through its participants.

         "BOND EQUIVALENT YIELD" shall have the meaning specified in Section
206(b)(6) hereof.

         "BUSINESS DAY" shall mean any day other than a Saturday or Sunday that
is (a) neither a legal holiday nor a day on which banking institutions are
authorized or required by law or regulations to close (x) in the City of New
York or (y) for Notes denominated in a specified currency other than U.S.
dollars, Australian dollars or Euro, in the principal financial center of the
country of the specified currency or (z) for Notes denominated in Australian
dollars, in Sydney and (b) for Notes denominated in Euro, that is also a day on
which the Trans-European Automated Real-time Gross Settlement Express Transfer
System, commonly referred to as "TARGET", is operating.

         "CALCULATION AGENT" shall have the meaning specified in Section 206(a)
hereof.

<PAGE>

         "CALCULATION DATE" shall have the meaning specified in Section 206(a)
hereof.

         "CALLHOLDER" shall mean the remarketing agent granted the option under
a REPS Remarketing Agreement to purchase Notes in the REPS Mode and subsequently
remarket the repurchased Notes at a REPS Coupon Reset Rate.

         "CD RATE" shall have the meaning specified in Section 206(b)(1) hereof.

         "CMT RATE" shall have the meaning specified in Section 206(b)(2)
hereof.

         "COMMERCIAL PAPER TERM MODE" shall mean, with respect to any Note, the
Interest Rate Mode in which the interest rate on such Note is reset on a
periodic basis that shall not be less than one calendar day nor more than 364
consecutive calendar days and interest is paid as provided for such Interest
Rate Mode in Section 204(e)(1) hereof.

         "COMMERCIAL PAPER TERM PERIOD" shall mean, with respect to any Note,
the Interest Rate Period in the Commercial Paper Term Mode that is a period of
not less than one nor more than 364 consecutive calendar days, as determined by
the Company or, if not so determined, by the Remarketing Agent for such Note (in
its best judgment in order to obtain the lowest interest cost for the Note).
Each Commercial Paper Term Period will commence on the Interest Rate Adjustment
Date therefor and end on the day preceding the date specified by such
Remarketing Agent as the first day of the next Interest Rate Period for the
Notes. The interest rate for any Commercial Paper Term Period relating to any
Note will be determined not later than 11:50 a.m., New York City time, on the
Interest Rate Adjustment Date for the Note, which is the first day of each
Interest Period for such Note.

         "COMPARABLE TREASURY ISSUES" shall mean the United States Treasury
security or securities selected by the Callholder as having an actual or
interpolated maturity or maturities comparable or applicable to the remaining
term to the next succeeding Interest Rate Adjustment Date of the Notes being
purchased, except that for the purposes of determining the initial REPS Coupon
Reset Rate, Comparable Treasury Issues shall mean the United States Treasury
security or securities selected by the Callholder as being the current
on-the-run ten year United States Treasury security.

         "COMPARABLE TREASURY PRICE" shall mean, with respect to the REPS
Remarketing Date, (a) the offer prices for the Comparable Treasury Issues
(expressed in each case as a percentage of its principal amount) at 11:00 a.m.
on the Determination Date, as set forth on Telerate Page 500 (or such other page
as may replace Telerate Page 500) or (b) if such page (or any successor page) is
not displayed or does not contain such offer prices on such Determination Date,
(i) the average of the Reference Treasury Dealer Quotations for such REPS
Remarketing Date, after excluding the highest and lowest of such Reference
Treasury Dealer Quotations, or (ii) if the Callholder obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all such Reference
Treasury Dealer Quotations. "TELERATE PAGE 500" shall mean the display
designated as "Telerate Page 500" on Dow Jones Markets (or such other page as
may replace Telerate Page 500 on such service) or such other service displaying
the offer prices specified in (a) above as may replace Dow Jones Markets.

<PAGE>

         "DEPOSITARY" shall have the meaning specified in Section 203 hereof.

         "DESIGNATED CMT TELERATE PAGE" shall mean the display on the Dow Jones
Markets (or any successor service) on the page specified in the applicable
Floating Interest Rate Notice (or any other page as may replace such page on
such service for the purpose of displaying Treasury Constant Maturities as
reported in H.15(519)) for the purpose of displaying Treasury Constant
Maturities as reported in H.15(519). If no such page is specified in the
applicable Floating Interest Rate Notice, the page shall be 7052 for the most
recent week.

         "DESIGNATED CMT MATURITY INDEX" shall mean the original period to
maturity of the United States Treasury securities (either 1, 2, 3, 5, 7, 10, 20
or 30 years) specified in the applicable Floating Interest Rate Notice with
respect to which the CMT Rate will be calculated. If no such maturity is
specified in the applicable Floating Interest Rate Notice, the Designated CMT
Maturity Index shall be 2 years.

         "DESIGNATED LIBOR PAGE" shall mean (a) if "LIBOR Reuters" is specified
in the applicable Floating Interest Rate Notice, the display on the Reuters
Monitor Money Rates Service for the purpose of displaying the London interbank
rates of major banks for the applicable Index Currency, or (b) if "LIBOR
Telerate" is specified in the applicable Floating Interest Rate Notice, the
display on the Bridge Telerate, Inc. (or any successor service) on the page
specified in the applicable Floating Interest Rate Notice (or any other page as
may replace such page on such service) for the purpose of displaying the London
interbank rates of major banks for the applicable Index Currency.

         "DETERMINATION DATE" shall mean the third Business Day immediately
preceding the applicable REPS Remarketing Date.

         "DOLLAR PRICE" shall mean the present value determined by the
Callholder, as of the applicable REPS Remarketing Date, of the Remaining
Scheduled Payments discounted to such REPS Remarketing Date, on a semiannual
basis (assuming a 360-day year consisting of twelve 30-day months), at the
Treasury Rate.

         "DTC PARTICIPANT" shall mean an account maintained by an institution
with the Depositary through which securities are held by such institution and
accounted for by a book-entry registration and transfer system.

         "FEDERAL FUNDS RATE" shall have the meaning specified in Section
206(b)(3) hereof.

         "FLOATING INTEREST RATE NOTICE" shall have the meaning specified in
Section 206(a) hereof. The form of Floating Rate Interest Notice is set forth as
EXHIBIT C to this Second Supplemental Indenture.

         "FLOATING RATE MAXIMUM INTEREST RATE" and "FLOATING RATE MINIMUM
INTEREST RATE" have the respective meanings specified in Section 206(a) hereof.

         "H.15(519)" shall mean "Statistical Release H.15(519), Selected
Interest Rates" published

<PAGE>

by the Board of Governors of the Federal Reserve System or any successor
publication.

         "INDEX CURRENCY" shall mean the currency or composite currency
specified in the applicable Floating Interest Rate Notice as to which LIBOR will
be calculated. If no such currency or composite currency is specified in the
applicable Floating Interest Rate Notice, the Index Currency will be United
States dollars.

         "INDEX MATURITY" shall mean the period to maturity of the instrument or
obligation with respect to which the related Interest Rate Basis or Bases will
be calculated.

         "INITIAL INTEREST RATE" shall mean the annual rate of interest
applicable to the Notes during the Initial Interest Rate Period.

         "INITIAL INTEREST RATE PERIOD" shall mean the period from the Original
Issue Date to, but excluding, Initial REPS Remarketing Date.

         "INITIAL CALLHOLDER" shall mean the Callholder with the option to
purchase the Notes on the Initial REPS Remarketing Date.

         "INITIAL REPS REMARKETING DATE" shall mean the date designated by the
Initial Callholder, after consultation with the Company, upon which the Initial
Callholder may, if it has so elected, remarket the Notes at the REPS Coupon
Reset Rate.

         "INTEREST DETERMINATION DATE" shall have the meaning specified in
Section 206(a) hereof.

         "INTEREST PAYMENT DATE" shall have the meaning set forth in Section
204(c) hereof.

         "INTEREST RATE ADJUSTMENT DATE" shall mean (i) for a particular
Interest Rate Period in any Interest Rate Mode, each date, which shall be a
Business Day, on which interest and, in the case of a floating interest rate,
the Spread (if any) and the Spread Multiplier (if any) on the Notes subject
thereto commences to accrue at the rate determined and announced by the
applicable Remarketing Agent for such Interest Rate Period, and (ii) for Notes
in the Initial Interest Rate Period, the Original Issue Date.

         "INTEREST RATE BASIS" shall have the meaning specified in Section
206(a) hereof.

         "INTEREST RATE MODE" shall mean the mode in which the interest rate on
a Note is being determined, I.E., the Commercial Paper Term Mode, the Long Term
Rate Mode or the REPS Mode.

         "INTEREST RATE PERIOD" shall mean (a) with respect to any Note in the
Commercial Paper Term Mode or Long Term Rate Mode, the period of time commencing
on the Interest Rate Adjustment Date and extending either (i) to, but not
including, the immediately succeeding Interest Rate Adjustment Date or (ii) if
there is no succeeding Interest Rate Adjustment Date, to, but not including, the
Stated Maturity, and during which such Note bears interest at a particular fixed
interest rate or floating interest rate, and (b) with respect to any Note in the
REPS Mode, the REPS Rate Period.

<PAGE>

         "INTEREST RESET DATE" and "INTEREST RESET PERIOD" have the respective
meanings specified in Section 206(a) hereof.

         "LIBOR" shall have the meaning specified in Section 206(b)(4) hereof.

         "LONDON BUSINESS DAY" shall mean any day on which dealings in deposits
in the relevant index currency are transacted in the London interbank market.

         "LONG TERM RATE MODE" shall mean, with respect to any Note, the
Interest Rate Mode in which the interest rate on such Note is reset in a Long
Term Rate Period and interest is paid as provided for such Interest Rate Mode in
Section 204(e)(2) hereof.

         "LONG TERM RATE PERIOD" shall mean, with respect to any Note, any
period of more than 364 days and not exceeding the remaining term to the Stated
Maturity of such Note.

         "NOTIFICATION DATE" shall mean a Business Day not later than five (5)
Business Days prior to the applicable REPS Remarketing Date.

         "OPTIONAL REDEMPTION" shall mean the redemption of any Note prior to
its maturity at the option of the Company as described herein.

         "OPTIONAL REDEMPTION PRICE" shall have the meaning specified in Section
305(c) hereof.

         "ORIGINAL ISSUE DATE" shall mean the date upon which the Notes are
initially issued by the Company, such date to be set forth on the face of the
Note.

         "PRIME RATE" shall have the meaning specified in Section 206(b)(5)
hereof.

         "REFERENCE CORPORATE DEALERS" shall mean such Reference Corporate
Dealers as shall be appointed by the Callholder after consultation with the
Company.

         "REFERENCE TREASURY DEALERS" shall mean such Reference Treasury Dealers
as shall be appointed by the Callholder after consultation with the Company.

         "REFERENCE TREASURY DEALER QUOTATION" shall mean, with respect to each
Reference Treasury Dealer and the REPS Remarketing Date, the offer prices for
the Comparable Treasury Issues (expressed in each case as a percentage of its
principal amount) quoted in writing to the Callholder by such Reference Treasury
Dealer by 3:30 p.m., New York City time, on the Determination Date.

         "REMAINING SCHEDULED PAYMENTS" shall mean, with respect to the Notes,
the remaining scheduled payments of the principal thereof and interest thereon,
calculated at the Base Rate only, that would be due after the REPS Remarketing
Date to and including the next succeeding Interest Rate Adjustment Date.

         "REMARKETING AGENT" shall mean such agent or agents, including any
standby remarketing agent (each a "STANDBY REMARKETING AGENT"), as the Company
may appoint from time to time for

<PAGE>

the purpose of remarketing of the Notes, as set forth in the remarketing
agreement that the Company shall enter into prior to the remarketing of such
Notes.

         "REPS COUPON RESET RATE" shall mean the rate equal to the Base Rate
established by a Callholder, after consultation with the Company, at or prior to
the commencement of the applicable REPS Mode, plus the Applicable Spread, which
will be based on the Dollar Price.

         "REPS MODE" shall mean, with respect to any Note, the Interest Rate
Mode in which such Note shall bear interest and be subject to remarketing as
"REset Put Securities" ("REPS") as provided for in Article Three hereof.

         "REPS PERIOD" shall mean, with respect to any Note remarketed by the
Initial Callholder on the Initial REPS Remarketing Date, that portion of the
REPS Rate Period commencing on the Initial REPS Remarketing Date up to, but
excluding, the next succeeding Interest Rate Adjustment Date.

         "REPS RATE PERIOD" shall mean an Interest Rate Period for any Note in
the REPS Mode established by the Company as a period of more than 364 days and
less than the remaining term to the Stated Maturity of such Note; PROVIDED,
HOWEVER, that such Interest Rate Period must end on the day prior to an Interest
Payment Date for such Note. The REPS Rate Period shall consist of the period to
and excluding the REPS Remarketing Date and the period from and including the
REPS Remarketing Date to, but excluding, the next succeeding Interest Rate
Adjustment Date.

         "REPS REMARKETING AGREEMENT" shall mean the agreement by and between
the Company and the Callholder dated as of the date commencing the applicable
REPS Rate Period that sets forth the rights and obligations of the Company and
the Callholder with respect to the remarketing of Notes in the REPS Mode.

         "REPS REMARKETING DATE" shall mean the date designated by the
Callholder, after consultation with the Company, upon which the Callholder may
elect to remarket the Notes at the REPS Coupon Reset Rate.

         "REUTERS SCREEN U.S. PRIME 1 PAGE" shall mean the display designated as
page "U.S. PRIME 1" on the Reuters Monitor Money Rates Service (or any successor
service) on the U.S. PRIME 1 Page (or such other page as may replace the U.S.
PRIME 1 Page on such service) for the purpose of displaying prime rates or base
lending rates of major United States banks.

         "SPECIAL INTEREST RATE" shall have the meaning set forth in Section 205
hereof.

         "SPECIAL MANDATORY PURCHASE" shall have the meaning specified in
Section 210(a) hereof.

         "SPREAD" shall mean the number of basis points to be added to or
subtracted from the related Interest Rate Basis or Bases applicable to an
Interest Rate Period for such Note.

         "SPREAD MULTIPLIER" shall mean the percentage of the related Interest
Rate Basis or Bases

<PAGE>

applicable to an Interest Rate Period by which such Interest Rate Basis or Bases
will be multiplied to determine the applicable interest rate from time to time
for an Interest Rate Period.

         "STATED MATURITY" shall mean September 1, 2015.

         "TREASURY BILLS" shall have the meaning specified in Section 206(b)(6)
hereof.

         "TREASURY RATE" shall have the meaning specified in Section 206(b)(6)
hereof, except that with respect to the Initial REPS Remarketing Date, "Treasury
Rate" shall mean the rate per annum equal to the semi-annual equivalent yield to
maturity or interpolated (on a day count basis) yield to maturity of the
Comparable Treasury Issues, assuming a price for the Comparable Treasury Issues
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for the Initial REPS Remarketing Date..

         "WEEKLY RATE PERIOD" shall have the meaning specified in Section
204(e)(1) hereof.

         SECTION 102. SECTION REFERENCES

         Each reference to a particular section set forth in this Second
Supplemental Indenture shall, unless the context otherwise requires, refer to
this Second Supplemental Indenture.

                                   ARTICLE TWO

                       DESIGNATION AND TERMS OF THE NOTES

         SECTION 201. ESTABLISHMENT OF SERIES

         There is hereby created a series of Securities to be known and
designated as the "7 3/8% REset Put Securities Due 2015" (the "NOTES"), which
shall rank equally with each other and all other unsecured and unsubordinated
indebtedness of the Company. For the purposes of the Original Indenture, the
Notes shall constitute a single series of Securities.

         SECTION 202. VARIATIONS IN TERMS OF NOTES

         Subject to the terms and conditions set forth in the Original Indenture
and in this Second Supplemental Indenture, the terms of any particular Note may
vary from the terms of any other Note as contemplated by Section 301 of the
Original Indenture, and the terms for a particular Note will be set forth in
such Note as delivered to the Trustee or an Authenticating Agent for
authentication pursuant to Section 303 of the Original Indenture.

         SECTION 203. AMOUNT AND DENOMINATIONS; THE DEPOSITARY

         The aggregate principal amount of Notes that may be issued under this
Second Supplemental Indenture is limited to $150,000,000.

         The Notes shall be issuable only in fully registered form and will
initially be registered in the name of The Depository Trust Company or its
successor ("DEPOSITARY"), or its nominee who is

<PAGE>

hereby designated as "U.S. Depositary" under the Original Indenture. The
authorized denominations of Notes shall be $100,000 and integral multiples of
$1,000 in excess thereof.

         SECTION 204. INTEREST RATES, INTEREST PAYMENT DATES AND INTEREST RATE
PERIODS

         (a) INITIAL INTEREST RATE. The Notes shall initially bear interest at
the annual rate set forth in Annex A thereof (the "INITIAL INTEREST RATE") from
the Original Issue Date to, but excluding, the Initial REPS Remarketing Date.

         (b) INTEREST RATE(S) SUBSEQUENT TO THE INITIAL INTEREST RATE. If the
Initial Callholder elects to purchase the Notes as described in Section 304
hereof, the Notes shall be subject to mandatory tender to the Initial Callholder
on the Initial REPS Remarketing Date, except in the limited circumstances
described in Section 304 hereof, and shall for the REPS Period bear interest at
the REPS Coupon Reset Rate as described in Section 304(b) hereof.

         If the Initial Callholder does not purchase the Notes on the Initial
REPS Remarketing Date, thereafter each Note shall bear interest at a rate or
rates in a new REPS Mode, a Long Term Rate Mode or a Commercial Paper Term Mode
if remarketed as provided for in Section 209 hereof, or otherwise shall be
redeemed by the Company as provided for under Section 210(b) hereof. Each Note
may bear interest for designated Interest Rate Periods in the same or a
different Interest Rate Mode from other Notes. The interest rate for the Notes
shall be established periodically by the applicable Remarketing Agent as
provided for in Section 209 hereof. Each Note will set forth on Annex A thereof
the then applicable Interest Rate Mode of such Note, its interest rate, each
Interest Rate Adjustment Date, the Interest Rate Period and such other
information indicated in the form of Annex A attached to EXHIBIT A hereto.

         (c) PAYMENT OF INTEREST. Interest shall be payable on any Note at
maturity and (i) for the Initial Interest Rate Period, on the dates set forth on
the face thereof; (ii) for any Interest Rate Period in the Commercial Paper Term
Mode, on the Interest Rate Adjustment Date commencing the next succeeding
Interest Rate Period for such Note and on such other dates (if any) as shall be
established upon conversion of such Note to the Commercial Paper Term Mode or
upon remarketing of the Note in a new Interest Rate Period in the Commercial
Paper Term Mode and set forth in Annex A to the applicable Note; and (iii) in
the Long Term Rate Mode or REPS Mode, no less frequently than semiannually on
such dates as will be established upon conversion of such Note to the Long Term
Rate Mode or the REPS Mode (or upon remarketing of the Note in a new Interest
Rate Period in the Long Term Rate Mode or the REPS Mode, as the case may be) and
set forth in Annex A to the applicable Note in the case of a fixed interest
rate, or as described below in Section 206 in the case of a floating interest
rate, and on the Interest Rate Adjustment Date commencing the next succeeding
Interest Rate Period (each such date, an "INTEREST PAYMENT DATE"). Such interest
will be payable to the holder thereof as of the related Record Date, which, for
any Note (x) during the Initial Interest Rate Period is the fifteenth calendar
day (whether or not a Business Day) immediately preceding the related Interest
Payment Date, except that the Record Date for the September 1, 2000 interest
payment shall be the day on which the Company delivers the Notes; (y) in the
Commercial Paper Term Mode, is the Business Day prior to the related Interest
Payment Date; and (z) in the Long Term Rate Mode

<PAGE>

or the REPS Mode, is the fifteenth calendar day (whether or not a Business Day)
immediately preceding the related Interest Payment Date. If any Interest Payment
Date would otherwise be a day that is not a Business Day, such Interest Payment
Date will be postponed to the next succeeding Business Day, and no interest will
accrue on such payment for the period from and after such Interest Payment Date
to the date of such payment on the next succeeding Business Day.

         (d) COMPUTATION OF INTEREST. Interest on Notes bearing interest in the
Commercial Paper Term Mode or at a floating interest rate during an Interest
Rate Period in the Long Term Rate Mode or the REPS Mode will be computed on the
basis of actual days elapsed over 360; PROVIDED that, if an applicable Interest
Rate Basis is the CMT Rate or Treasury Rate (each as defined in Section 206
hereof), interest will be computed on the basis of actual days elapsed over the
actual number of days in the year. Interest on Notes bearing interest at a fixed
rate in the Long Term Rate Mode or REPS Mode will be computed on the basis of a
year of 360 days consisting of twelve 30-day months. Interest on Notes at the
Initial Interest Rate will be computed on the basis of a year of 360 days
consisting of twelve 30-day months.

         (e) INTEREST RATE MODES. The Interest Rate Period for each interest
rate mode shall be determined in accordance with this subsection (e) subject to
possibility of extension of such period pursuant to standby remarketing
arrangements, if any, as described in Section 209(b) hereof.

                  (1) COMMERCIAL PAPER TERM MODE. The Interest Rate Period for
any Note in the Commercial Paper Term Mode will be a period of not less than one
nor more than 364 consecutive calendar days (a "COMMERCIAL PAPER TERM PERIOD"),
as determined by the Company (as described in Section 207 below) or, if not so
determined, by the Remarketing Agent for such Note (in its best judgment in
order to obtain the lowest interest cost for such Note). Each Commercial Paper
Term Period will commence on the Interest Rate Adjustment Date therefor and end
on the day preceding the date specified by such Remarketing Agent as the first
day of the next Interest Rate Period for such Note. A "WEEKLY RATE PERIOD" is a
Commercial Paper Term Period and shall be a period of seven days commencing on
any Interest Rate Adjustment Date and ending on the day preceding the first day
of the next Interest Rate Period for such Note. The interest rate for any
Commercial Paper Term Period relating to a Note shall be determined not later
than 11:50 a.m., New York City time, on the Interest Rate Adjustment Date for
such Note (subject to Section 209 hereof), which is the first day of each
Interest Period for such Note.

                  (2) LONG TERM RATE MODE. The Interest Rate Period for any Note
in the Long Term Rate Mode shall be established by the Company (as described in
Section 207 hereof) as a period of more than 364 days and not exceeding the
remaining term to the Stated Maturity of such Note (a "LONG TERM RATE PERIOD").
The interest rate, or Spread (if any) and Spread Multiplier (if any), for any
Note in the Long Term Rate Mode shall be determined not later than 11:50 a.m.,
New York City time, on the Interest Rate Adjustment Date for such Note, which is
the first day of each Interest Rate Period for such Note.

                  (3) REPS MODE. So long as any Note is in a REPS Mode during
the period up to, but

<PAGE>

excluding, the applicable REPS Remarketing Date, the provisions set forth in
this Article Two are applicable to the remarketing of Notes generally, but only
to the extent expressly provided in Article Three. The Interest Rate Period for
any Note in the REPS Mode shall be established by the Company (as described in
Section 207 hereof) as a period of more than 364 days and not exceeding the
remaining term to the Stated Maturity of such Note (a "REPS RATE PERIOD"). A
REPS Rate Period shall consist of the period to and excluding the REPS
Remarketing Date and the period from and including the REPS Remarketing Date to,
but excluding, the next succeeding Interest Rate Adjustment Date, as described
in Article Three and subject to the conditions therein and otherwise herein
described. The interest rate and, in the case of a floating interest rate, the
Spread (if any), and the Spread Multiplier (if any) to the REPS Remarketing Date
for any Note in the REPS Mode shall be determined not later than 11:50 a.m., New
York City time, on the Interest Rate Adjustment Date for such Note, which for
the REPS Mode is the first day of each Interest Rate Period for such Note.

SECTION 205.  DETERMINATION OF INTEREST RATES

         The interest rate and, in the case of a floating interest rate, the
Spread (if any), and the Spread Multiplier (if any), for any Note shall be
established by the applicable Remarketing Agent in a remarketing as provided for
in Section 207 hereof or otherwise not later than the first day of each
succeeding Interest Rate Period for such Note, which must be a Business Day
(each an "INTEREST RATE ADJUSTMENT DATE"), and will be the minimum rate of
interest and, in the case of a floating interest rate, Spread (if any) and
Spread Multiplier (if any) necessary in the judgment of such Remarketing Agent
to produce a par bid in the secondary market for such Note on the date the
interest rate is established. Such rate will be effective for the next
succeeding Interest Rate Period for such Note commencing on such Interest Rate
Adjustment Date.

         In the event that (i) the applicable Remarketing Agent has been removed
or has resigned and no successor has been appointed; or (ii) such Remarketing
Agent has failed to announce the appropriate interest rate, Spread (if any) or
Spread Multiplier (if any), as the case may be, on the Interest Rate Adjustment
Date for any Note for whatever reason; or (iii) the appropriate interest rate,
Spread (if any) or Spread Multiplier (if any), as the case may be, or Interest
Rate Period cannot be determined for any Note for whatever reason, then the next
succeeding Interest Rate Period for such Note shall be automatically converted
to a Weekly Rate Period, and the rate of interest thereon will be equal to the
Federal Funds Rate (such rate of interest being referred to herein as the
"SPECIAL INTEREST RATE").

         After any Interest Rate Adjustment Date any Beneficial Owner may
contact the Trustee or the Remarketing Agent in order to be advised of the
interest rate applicable to such Beneficial Owner's remarketed Notes. No notice
of the applicable interest rate will be sent to Beneficial Owners.

         The interest rate and other terms announced by the Remarketing Agent,
absent manifest error, shall be binding and conclusive upon the Beneficial
Owners, the Company and the Trustee.

         SECTION 206. Election and Determination of a Floating Interest Rate by
the Company

<PAGE>

         (a) While any Note bears interest in the Long Term Rate Mode or the
REPS Mode (with respect to the period from, and including, the Interest Rate
Adjustment Date commencing such period to, but excluding, the REPS Remarketing
Date), the Company may elect a floating interest rate by providing notice, which
shall be submitted or promptly confirmed in writing (which includes facsimile or
appropriate electronic media), received by the Trustee and the Remarketing Agent
for such Note (the "FLOATING INTEREST RATE NOTICE") not less than ten (10) days
prior to the Interest Rate Adjustment Date for such Long Term Rate Period or
REPS Rate Period. The Floating Interest Rate Notice must identify by CUSIP
number or otherwise the portion of the Note to which it relates and state the
Interest Rate Period (or portion thereof, in the case of the REPS Mode) therefor
to which it relates. Each Floating Interest Rate Notice must also state the
Interest Rate Basis or Bases, the initial Interest Reset Date, the Interest
Reset Period and Interest Reset Dates, the Interest Rate Period and Interest
Payment Dates, the Index Maturity and the Floating Rate Maximum Interest Rate
and/or Floating Rate Minimum Interest Rate, if any. If one or more of the
applicable Interest Rate Bases is LIBOR or the CMT Rate, the Floating Interest
Rate Notice shall also specify the Index Currency and Designated LIBOR Page or
the Designated CMT Maturity Index and Designated CMT Telerate Page,
respectively. A form of Floating Interest Rate Notice is attached hereto as
EXHIBIT C.

         If any Note bears interest at a floating rate in a Long Term Rate
Period or REPS Rate Period, such Note shall bear interest at the rate determined
by reference to the applicable Interest Rate Basis or Bases (a) plus or minus
the Spread (if any) and/or (b) multiplied by the Spread Multiplier (if any)
specified by the Remarketing Agent, in the case of a Long Term Rate Period, or
the Callholder, in the case of a REPS Rate Period. Commencing on the Interest
Rate Adjustment Date for such Interest Rate Period, the rate at which interest
on such Note will be payable shall be reset as of each Interest Reset Date
during such Interest Rate Period specified in the applicable Floating Interest
Rate Notice.

         The applicable floating interest rate on any Note during any Interest
Rate Period shall be determined by reference to the applicable Interest Rate
Basis or Bases, which may include (i) the CD Rate, (ii) the CMT Rate, (iii) the
Federal Funds Rate, (iv) LIBOR, (v) the Prime Rate, (vi) the Treasury Rate or
(vii) such other Interest Rate Basis or interest rate formula as may be
specified in the applicable Floating Interest Rate Notice (each, an "INTEREST
RATE BASIS").

         Unless otherwise specified in the applicable Floating Interest Rate
Notice, the interest rate with respect to each Interest Rate Basis shall be
determined in accordance with the applicable provisions of this Section 206.
Except as set forth above or in the applicable Floating Interest Rate Notice,
the interest rate in effect on each day shall be (i), if such day is an Interest
Reset Date, the interest rate determined as of the Interest Determination Date
immediately preceding such Interest Reset Date or (ii), if such day is not an
Interest Reset Date, the interest rate determined as of the Interest
Determination Date immediately preceding the most recent Interest Reset Date. If
any Interest Reset Date would otherwise be a day that is not a Business Day,
such Interest Reset Date shall be postponed to the next succeeding Business Day,
unless LIBOR is an applicable Interest Rate Basis and such Business Day falls in
the next succeeding calendar month, in which case such Interest Reset Date shall
be the immediately preceding Business Day. In addition, if the Treasury Rate is
an applicable Interest Rate Basis and the Interest

<PAGE>

Determination Date would otherwise fall on an Interest Reset Date, then such
Interest Reset Date shall be postponed to the next succeeding Business Day.

         The applicable Floating Interest Rate Notice will specify whether the
rate of interest will be reset daily, weekly, monthly, quarterly, semiannually
or annually or on such other specified basis (each, an "INTEREST RESET PERIOD")
and the dates on which such rate of interest will be reset (each, an "INTEREST
RESET DATE"). Unless otherwise specified in the applicable Floating Interest
Rate Notice, the Interest Reset Dates will be, in the case of a floating
interest rate which resets: (i) daily, each Business Day; (ii) weekly, the
Wednesday of each week (unless the Treasury Rate is an applicable Interest Rate
Basis, in which case the Tuesday of each week except as described below); (iii)
monthly, the third Wednesday of each month; (iv) quarterly, the third Wednesday
of March, June, September and December of each year; (v) semiannually, the third
Wednesday of the two months specified in the applicable Floating Interest Rate
Notice; and (vi) annually, the third Wednesday of the month specified in the
applicable Floating Interest Rate Notice.

         The interest rate applicable to each Interest Reset Period commencing
on the related Interest Reset Date shall be the rate determined as of the
applicable Interest Determination Date. The "INTEREST DETERMINATION DATE" shall
mean (i), with respect to the CD Rate, the CMT Rate, the Federal Funds Rate and
the Prime Rate, the second Business Day immediately preceding the applicable
Interest Reset Date; (ii) with respect to LIBOR, the second London Business Day
immediately preceding the applicable Interest Reset Date, unless the Index
Currency is British pounds sterling, in which case it shall mean the applicable
Interest Reset Date; and (iii) with respect to the Treasury Rate, the day within
the week in which the applicable Interest Reset Date falls upon which day
Treasury Bills are normally auctioned; PROVIDED, HOWEVER, that if an auction is
held on the Friday of the week preceding the applicable Interest Reset Date, the
"INTEREST DETERMINATION DATE" shall mean such preceding Friday. If the interest
rate of any Note is a floating interest rate determined with reference to two or
more Interest Rate Bases specified in the applicable Floating Interest Rate
Notice, the Interest Determination Date pertaining to the Note shall be the most
recent Business Day which is at least two Business Days prior to the applicable
Interest Reset Date on which each Interest Rate Basis shall determinable. Each
Interest Rate Basis will be determined as of such date, and the applicable
interest rate shall take effect on the related Interest Reset Date.

         Either or both of the following may also apply to the floating interest
rate on any Note for an Interest Rate Period: (i) a floating rate maximum
interest rate, or ceiling, that may accrue during any Interest Reset Period (the
"FLOATING RATE MAXIMUM INTEREST RATE") and (ii) a floating rate minimum interest
rate, or floor, that may accrue during any Interest Reset Period (the "FLOATING
RATE MINIMUM INTEREST RATE"). In addition to any Floating Rate Maximum Interest
Rate that may apply, the interest rate on any Note shall in no event be higher
than the maximum rate permitted under the law of the State of New York, as the
same may be modified by United States laws of general application.

         Except as provided below or in the applicable Floating Interest Rate
Notice, interest will be payable, in the case of floating interest rates which
reset: (i) daily, weekly or monthly, on the third Wednesday of each month; (ii)
quarterly, on the third Wednesday of March, June,

<PAGE>

September and December of each year; (iii) semiannually, on the third Wednesday
of the two months of each year specified in the applicable Floating Interest
Rate Notice; and (iv) annually, on the third Wednesday of the month of each year
specified in the applicable Floating Interest Rate Notice and, in each case, on
the Business Day immediately following the applicable Long Term Rate Period or
REPS Rate Period, as the case may be. If any Interest Payment Date for the
payment of interest at a floating rate (other than following the end of the
applicable Long Term Rate Period or REPS Rate Period, as the case may be) would
otherwise be a day that is not a Business Day, such Interest Payment Date will
be postponed to the next succeeding Business Day, except that if LIBOR is an
applicable Interest Rate Basis and such Business Day falls in the next
succeeding calendar month, such Interest Payment Date will be the immediately
preceding Business Day.

         All percentages resulting from any calculation of floating interest
rates will be rounded to the nearest one hundred thousandth of a percentage
point, with five one-millionths of a percentage point rounded upwards (E.G.,
9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655)), and all
amounts used in or resulting from such calculation will be rounded, in the case
of United States dollars, to the nearest cent or, in the case of a foreign
currency or composite currency, to the nearest unit (with one-half cent or unit
being rounded upwards).

         Accrued floating rate interest will be calculated by multiplying the
principal amount of the applicable Note by an accrued interest factor. Such
accrued interest factor will be computed by adding the interest factor
calculated for each day in the applicable Interest Reset Period. Unless
otherwise specified in the applicable Floating Interest Rate Notice, the
interest factor for each such day will be computed by dividing the interest rate
applicable to such day by 360, if an applicable Interest Rate Basis is the CD
Rate, the Federal Funds Rate, LIBOR or the Prime Rate, or by the actual number
of days in the year if an applicable Interest Rate Basis is the CMT Rate or the
Treasury Rate. Unless otherwise specified in the applicable Floating Interest
Rate Notice, if the floating interest rate is calculated with reference to two
or more Interest Rate Bases, the interest factor will be calculated in each
period in the same manner as if only one of the applicable Interest Rate Bases
applied as specified in the applicable Floating Interest Rate Notice.

         For any Note bearing interest at a floating rate, the applicable
Remarketing Agent shall determine the interest rate in effect from the Interest
Rate Adjustment Date for such Note to the initial Interest Reset Date. The
interest rate in effect for each Interest Reset Period thereafter shall be
determined by a calculation agent selected by the Company (a "CALCULATION
AGENT"). Upon request of the Beneficial Owner of a Note, after any Interest Rate
Adjustment Date, the Calculation Agent or the Remarketing Agent shall disclose
the interest rate and, in the case of a floating interest rate, Interest Rate
Basis or Bases, Spread (if any) and Spread Multiplier (if any), and in each case
the other terms applicable to such Note then in effect and, if determined, the
interest rate that will become effective as a result of a determination made for
the next succeeding Interest Reset Date with respect to such Note. Except as
described herein with respect to a Note earning interest at floating rates, the
Beneficial Owner of a note shall not be entitled to receive notice of the
applicable interest rate, Spread (if any) or Spread Multiplier (if any).

<PAGE>

         Unless otherwise specified in the applicable Floating Interest Rate
Notice, the "CALCULATION DATE," if applicable, pertaining to any Interest
Determination Date will be the earlier of (i) the tenth calendar day after such
Interest Determination Date or, if such day is not a Business Day, the next
succeeding Business Day or (ii) the Business Day immediately preceding the
applicable Interest Payment Date or the Stated Maturity, as the case may be.

         (b) INTEREST RATE BASES FOR FLOATING INTEREST RATES. The basis for the
floating interest rate on any Note during any Interest Rate Period may include,
but is not limited to, any of the following bases (each, an "INTEREST RATE
BASIS"):

                  (1) If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as the "CD RATE," the CD Rate shall
mean, with respect to any Interest Determination Date relating to a Note for
which the interest rate is determined with reference to the CD Rate (a "CD RATE
INTEREST DETERMINATION DATE"), the rate on such date for negotiable United
States dollar certificates of deposit having the Index Maturity specified in the
applicable Floating Interest Rate Notice as published in H.15(519) under the
heading "CDs (Secondary Market)," or, if not published by 9:00 a.m., New York
City time, on the related Calculation Date, the CD Rate will be the rate on such
CD Rate Interest Determination Date set forth in the daily update of H.15(519) ,
available through the world wide website of the Board of Governors of the
Federal Reserve System at http://www.bog.frb.fed.us/releases/h15/update, or any
successor site or publication ("H.15 Daily Update") for the day in respect of
certificates of deposit having the Index Maturity specified in the applicable
Floating Interest Rate Notice under the caption "CDs (Secondary Market)." If
such rate is not yet published in either H.15(519) or the H.15 Daily Update by
3:00 p.m., New York City time, on the related Calculation Date, then the CD Rate
on such CD Rate Interest Determination Date shall be calculated by the
Calculation Agent and shall be the arithmetic mean of the secondary market
offered rates as of 10:00 a.m., New York City time, on such CD Rate Interest
Determination Date, of three leading nonbank dealers in negotiable United States
dollar certificates of deposit in the City of New York (which may include the
Remarketing Agent or its affiliates) selected by the Calculation Agent, after
consultation with the Company, for negotiable United States dollars certificates
of deposit of major United States money center banks of the highest credit
standing in the market for negotiable certificates of deposit with a remaining
maturity closest to the Index Maturity specified in the applicable Floating
Interest Rate Notice in an amount that is representative for a single
transaction in that market at that time; PROVIDED, HOWEVER, that if the dealers
so selected by the Calculation Agent are not quoting as mentioned in this
sentence, the CD Rate determined as of such CD Rate Interest Determination Date
will be the CD Rate in effect on such CD Rate Interest Determination Date.

                  (2) If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as the "CMT RATE," the CMT Rate shall
mean, with respect to any Interest Determination Date relating to a Note for
which the interest rate is determined with reference to the CMT Rate (a "CMT
RATE INTEREST DETERMINATION DATE"), the rate displayed on the Designated CMT
Telerate Page under the caption "...Treasury Constant Maturities ... Federal
Reserve Board Release H.15 ... Mondays Approximately 3:45 P.M.," under the
column for the Designated CMT Maturity Index for (i), if the Designated CMT
Telerate Page is 7055, the rate on such CMT Rate

<PAGE>

Interest Determination Date and (ii) if the Designated CMT Telerate Page is
7052, the weekly or monthly average, as specified in the Floating Interest Rate
Notice, for the week or the month, as applicable, ended immediately preceding
the week or the month, as applicable, in which the related CMT Rate Interest
Determination Date occurs. If such rate is no longer displayed on the relevant
page or is not displayed by 3:00 p.m., New York City time, on the related
Calculation Date, then the CMT Rate for such CMT Rate Interest Determination
Date shall be such treasury constant maturity rate for the Designated CMT
Maturity Index as published in H.15(519). If such rate is no longer published or
is not published by 3:00 p.m., New York City time, on the related Calculation
Date, then the CMT Rate on such CMT Rate Interest Determination Date shall be
such treasury constant maturity rate for the Designated CMT Maturity Index (or
other United States Treasury rate for the Designated CMT Maturity Index) for the
CMT Rate Interest Determination Date with respect to such Interest Reset Date as
may then be published by either the Board of Governors of the Federal Reserve
System or the United States Department of the Treasury that the Calculation
Agent determines to be comparable to the rate formerly displayed on the
Designated CMT Telerate Page and published in H.15(519). If such information is
not provided by 3:00 p.m., New York City time, on the related Calculation Date,
then the CMT Rate on the CMT Rate Interest Determination Date shall be
calculated by the Calculation Agent and shall be a yield to maturity, based on
the arithmetic mean of the secondary market closing offer side prices as of
approximately 3:30 p.m., New York City time, on such CMT Rate Interest
Determination Date reported, according to their written records, by three
leading primary United States government securities dealers (each, a "REFERENCE
DEALER") in the City of New York (which may include the Remarketing Agent or its
affiliates) selected by the Calculation Agent after consultation with the
Company (from five such Reference Dealers selected by the Calculation Agent,
after consultation with the Company, and eliminating the highest quotation (or,
in the event of equality, one of the highest) and the lowest quotation (or, in
the event of equality, one of the lowest)), for the most recently issued direct
noncallable fixed rate obligations of the United States ("TREASURY NOTES") with
an original maturity of approximately the Designated CMT Maturity Index and a
remaining term to maturity of not less than such Designated CMT Maturity Index
minus one year. If the Calculation Agent is unable to obtain three such Treasury
Note quotations, the CMT Rate on such CMT Rate Interest Determination Date shall
be calculated by the Calculation Agent and shall be a yield to maturity based on
the arithmetic mean of the secondary market offer side prices as of
approximately 3:30 p.m., New York City time, on such CMT Rate Interest
Determination Date of three Reference Dealers in the City of New York (from five
such Reference Dealers selected by the Calculation Agent, after consultation
with the Company, and eliminating the highest quotation (or, in the event of
equality, one of the highest) and the lowest quotation (or, in the event of
equality, one of the lowest)), for Treasury Notes with an original maturity of
the number of years that is the next highest to the Designated CMT Maturity
Index and a remaining term to maturity closest to the Designated CMT Maturity
Index and in an amount of at least U.S. $100 million. If three or four (and not
five) of such Reference Dealers are quoting as described above, then the CMT
Rate shall be based on the arithmetic mean of the offer prices obtained and
neither the highest nor the lowest of such quotes shall be eliminated; PROVIDED,
HOWEVER, that if fewer than three Reference Dealers so selected by the
Calculation Agent, after consultation with the Company, are quoting as mentioned
herein, the CMT Rate determined as of such CMT Rate Interest Determination Date
shall be the CMT Rate in effect on such CMT Rate Interest Determination Date. If
two

<PAGE>

Treasury Notes with an original maturity as described in the second preceding
sentence have remaining terms to maturity equally close to the Designated CMT
Maturity Index, the Calculation Agent, after consultation with the Company,
shall obtain from five Reference Dealers quotations for the Treasury Note with
the shorter remaining term to maturity.

                  (3) If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as the "FEDERAL FUNDS RATE," the
Federal Funds Rate shall mean, with respect to any Interest Determination Date
relating to a Note for which the interest rate is determined with reference to
the Federal Funds Rate (a "FEDERAL FUNDS RATE INTEREST DETERMINATION DATE"), the
rate on such date for United States dollar federal funds as published in
H.15(519) under the heading "Federal Funds (Effective)" as displayed on Bridge
Telerate, Inc. (or any successor service) on page 120 or any other page as may
replace the applicable page on that service ("Telerate Page 120"). If such rate
is not displayed on Telerate Page 120 or is not published by 9 a.m., New York
City time, on the related Calculation Date, the Federal Funds Rate will be the
rate on such Federal Funds Rate Interest Determination Date as published in the
H.15 Daily Update under the heading "Federal Funds/(Effective)." If no such rate
is published in either H.15(519) or H.15 Daily Update by 3 p.m., New York City
time, on the related Calculation Date, then the Federal Funds Rate on such
Federal Funds Rate Interest Determination Date shall be calculated by the
Calculation Agent and shall be the arithmetic mean of the rates for the last
transaction in overnight United States dollar federal funds arranged by three
leading brokers of federal funds transactions in The City of New York (which may
include the Remarketing Agent or its affiliates) selected by the Calculation
Agent after consultation with the Company, prior to 9:00 a.m., New York City
time, on such Federal Funds Rate Interest Determination Date; PROVIDED, HOWEVER,
that if the brokers so selected by the Calculation Agent are not quoting as
mentioned in this sentence, the Federal Funds Rate determined as of such Federal
Funds Rate Interest Determination Date shall be the Federal Funds Rate in effect
on such Federal Funds Rate Interest Determination Date.

                  (4) If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as "LIBOR," LIBOR shall mean the rate
determined by the Calculation Agent as of the applicable Interest Determination
Date (a "LIBOR INTEREST DETERMINATION DATE") in accordance with the following
provisions:

                    (i) If (a) "LIBOR Reuters" is specified in the applicable
               Floating Interest Rate Notice, the arithmetic mean of the offered
               rates (unless the Designated LIBOR Page by its terms provides
               only for a single rate, in which case such single rate will be
               used) for deposits in the Index Currency having the Index
               Maturity specified in the applicable Floating Interest Rate
               Notice, commencing on the second London Business Day immediately
               following such LIBOR Interest Determination Date, that appear on
               the Designated LIBOR Page as of 11:00 a.m., London time, on that
               LIBOR Interest Determination Date, if at least two such offered
               rates appear (unless, as aforesaid, only a single rate is
               required) on such Designated LIBOR Page, or (b) "LIBOR Telerate"
               is specified in the applicable Floating Interest Rate Notice, the
               rate for deposits in the Index Currency having the Index Maturity
               designated in the applicable Floating Interest Rate Notice,

<PAGE>

               commencing on the second London Business Day immediately
               following such LIBOR Interest Rate Determination Date, that
               appears on such Designated LIBOR Page as of 11:00 a.m., London
               time, on that LIBOR Interest Determination Date. If fewer than
               two such offered rates appear (if "LIBOR Reuters" is specified in
               the applicable Floating Interest Rate Notice), or if no such rate
               appears (if "LIBOR Telerate" is specified in the applicable
               Floating Interest Rate Notice), LIBOR on such LIBOR Interest
               Determination Date will be determined in accordance with the
               provisions described below.

                    (ii) With respect to a LIBOR Interest Determination Date on
               which fewer than two such offered rates appear (if "LIBOR
               Reuters" is specified in the applicable Floating Interest Rate
               Notice), or if no such rate appears (if "LIBOR Telerate" is
               specified in the applicable Floating Interest Rate Notice), the
               Calculation Agent shall request the principal London offices of
               each of four major reference banks in the London interbank
               market, as selected by the Calculation Agent, to provide the
               Calculation Agent with its offered quotation for deposits in the
               Index Currency for the period of the Index Maturity specified in
               the applicable Floating Interest Rate Notice, commencing on the
               second London Business Day immediately following such LIBOR
               Interest Determination Date, to prime banks in the London
               interbank market at approximately 11:00 a.m., London time, on
               such LIBOR Interest Determination Date and in a principal amount
               that is representative of a single transaction in such Index
               Currency in such market at such time.

                    (iii) If at least two such quotations are provided, LIBOR
               determined on such LIBOR Interest Determination Date will be the
               arithmetic mean of such quotations, If fewer than two quotations
               are provided, LIBOR determined on such LIBOR Interest
               Determination Date will be the arithmetic mean of the rates
               quoted at approximately 11:00 am (or such other time specified in
               the applicable Floating Interest Rate Notice), in the applicable
               principal financial center for the country of the Index Currency
               on such LIBOR Interest Determination Date, by three major banks
               in such principal financial center selected by the Calculation
               Agent for the loans in the Index Currency to leading European
               banks, having the Index Maturity designated in the applicable
               Floating Interest Rate Notice and in a principal amount that is
               representative for a single transaction in such Index Currency in
               such market at such time; provided, however, that if the banks so
               selected by the Calculation Agent are not quoting as mentioned in
               this sentence, LIBOR in effect for the applicable period will be
               the same as LIBOR for the immediately preceding Interest Reset
               Period (or, if there was no such Interest Reset Period, the rate
               of interest payable on the Notes for which such LIBOR is being
               determined shall be the Initial Interest Rate).

                  (5) If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as the "PRIME RATE," Prime Rate shall
mean, with respect to any Interest Determination Date relating to a Note for
which the interest rate is determined with reference to

<PAGE>

the Prime Rate (a "PRIME RATE INTEREST DETERMINATION DATE"), the rate on such
date as such rate is published in H.15(519) under the heading "Bank Prime Loan."
If such rate is not published prior to 3:00 p.m., New York City time, on the
related Calculation Date, then the Prime Rate shall be the arithmetic mean of
the rates of interest publicly announced by each bank that appears on the
Reuters Screen U.S. PRIME 1 Page (as defined below) as such bank's prime rate or
base lending rate as in effect for such Prime Rate Interest Determination Date.
If fewer than four such rates appear on the Reuters Screen U.S. PRIME 1 Page for
such Prime Rate Interest Determination Date, the Prime Rate shall be the
arithmetic mean of the prime rates quoted on the basis of the actual number of
days in the year divided by a 360-day year as of the close of business on such
Prime Rate Interest Determination Date by four major money center banks (which
may include the Calculation Agent) in the City of New York selected by the
Calculation Agent, after consultation with the Company. If fewer than four such
quotations are so provided, the Prime Rate shall be the arithmetic mean of four
prime rates quoted on the basis of the actual number of days in the year divided
by a 360-day year as of the close of business on such Prime Rate Interest
Determination Date as furnished in the City of New York by the major money
center banks, if any, that have provided such quotations and by as many
substitute banks or trust companies (which may include the Calculation Agent) as
necessary in order to obtain four such prime rate quotations, PROVIDED such
substitute banks or trust companies are organized and doing business under the
laws of the United States, or any State thereof, have total equity capital of at
least U.S. $500 million and are each subject to supervision or examination by
Federal or State authority, selected by the Calculation Agent, after
consultation with the Company, to provide such rate or rates; PROVIDED, HOWEVER,
that if the banks or trust companies so selected by the Calculation Agent are
not quoting as mentioned in this sentence, the Prime Rate determined as of such
Prime Rate Interest Determination Date shall be the Prime Rate in effect on such
Prime Rate Interest Determination Date.

                  (6) If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as the "TREASURY RATE," Treasury Rate
shall mean, with respect to any Interest Determination Date relating to a Note
for which the interest rate is determined with reference to the Treasury Rate (a
"TREASURY RATE INTEREST DETERMINATION DATE"), the following:

                    (i) the rate from the auction held on the applicable
               Treasury Rate Interest Determination Date (the "AUCTION") of
               direct obligations of the United States ("TREASURY BILLS") having
               the Index Maturity specified in the applicable Floating Interest
               Rate Notice that rate appears under the caption "INVESTMENT RATE"
               on the display of Bridge Telerate, Inc., or any successor
               service, on page 56 or any other page as may replace page 56 on
               that service ("TELERATE PAGE 56") or page 57 or any other page as
               may replace page 57 on that service ("TELERATE PAGE 57"); or

                    (ii) if the rate described above is not published by 3:00
               p.m., New York City time, on the Calculation Date, the Bond
               Equivalent Yield of the rate for the applicable Treasury Bills as
               published in the H.15 Daily Update, or other recognized
               electronic source used for the purpose of displaying the
               applicable rate, under the captions "U.S. Government
               Securities/Treasury Bills/Auction

<PAGE>

               High;" or

                    (iii) if the rate described above is not published by 3:00
               p.m., New York City time, on the related Calculation Date, the
               Bond Equivalent Yield of the Auction rate of the applicable
               Treasury Bills, announced by the United States Department of the
               Treasury; or

                    (iv) in the event that the rate described above is not
               announced by the United States Department of the Treasury, or if
               the Auction is not held, the Bond Equivalent Yield of the rate on
               the applicable Interest Determination Date of Treasury Bills
               having the Index Maturity specified in the applicable Floating
               Interest Rate Notice published in H.15(519) under the caption
               "U.S. Government Securities/Treasury Bills/Secondary Market;" or

                    (v) if the rate described above is not so published by 3:00
               p.m., New York City time, on the related Calculation Date, the
               rate on the applicable Interest Determination Date of the
               applicable Treasury Bills as published in H.15 Daily Update, or
               other recognized electronic source used for the purpose of
               displaying the applicable rate, under the caption "U.S.
               Government Securities/Treasury Bills/Secondary Market;" or

                    (vi) if the rate described above is not so published by 3:00
               p.m., New York City time, on the related Calculation Date, the
               rate on the applicable Interest Determination Date calculated by
               the Calculation Agent as the Bond Equivalent Yield of the
               arithmetic mean of the secondary market bid rates, as of
               approximately 3:30 p.m., New York City time, on the applicable
               Interest Determination Date, of three primary United States
               government securities dealers, which may include the Calculation
               Agent or its affiliates, selected by the Calculation Agent, for
               the issue of Treasury Bills with a remaining maturity closest to
               the Index Maturity specified in the applicable Floating Interest
               Rate Notice; or

                    (vii) if the dealers selected by the Calculation Agent are
               not quoting as described above, the Treasury Rate for the
               immediately preceding Interest Reset Period, or, if there was no
               Interest Reset Period, the rate of interest payable shall be the
               Initial Interest Rate.

         The "BOND EQUIVALENT YIELD" shall mean a yield calculated in accordance
with the following formula and expressed as a percentage:

       Bond Equivalent Yield =         D x N
                                       -----
                                   360 - (D x M)

where "D" refers to the applicable per annum rate for Treasury Bills quoted on a
bank discount basis, "N" refers to 365 or 366, as the case may be, and "M"
refers to the actual number of days

<PAGE>

in the interest period for which interest is being calculated.

SECTION 207.  CONVERSION  BETWEEN INTEREST RATE MODES BY THE COMPANY

         The Company may, at its option, convert the Interest Rate Mode of the
Notes upon (i) any Interest Rate Adjustment Date, (ii) election of a Callholder
to remarket the Notes, subject to the provisions of Section 305 hereof, or (iii)
failure of the Callholder to purchase the Notes on the applicable REPS
Remarketing Date as described in Section 304 hereof, in each case in accordance
with the procedures provided for in this Section.

         (a) CONVERSION BETWEEN COMMERCIAL PAPER TERM PERIODS. Each Note in a
Commercial Paper Term Period may be remarketed into the same Interest Rate
Period or converted at the option of the Company to a different Commercial Paper
Term Period on any Interest Rate Adjustment Date upon either receipt by the
Remarketing Agent and the Trustee of a notice, which will be submitted promptly
confirmed in writing (which includes facsimile or appropriate electronic media),
from the Company (a "CONVERSION NOTICE") prior to 9:30 a.m., New York City time,
or the remarketing of such Note, whichever occurs later, on such Interest Rate
Adjustment Date.

         (b) CONVERSION FROM THE COMMERCIAL PAPER TERM MODE TO THE LONG TERM
RATE MODE OR THE REPS MODE. Each Note in the Commercial Paper Term Mode may be
converted at the option of the Company to the Long Term Rate Mode or the REPS
Mode on any Interest Rate Adjustment Date upon receipt not less than ten (10)
days prior to such Interest Rate Adjustment Date by the Remarketing Agent and
the Trustee of a Conversion Notice from the Company.

         (c) CONVERSION BETWEEN LONG TERM RATE PERIODS OR FROM THE LONG TERM
RATE MODE OR THE REPS MODE TO THE COMMERCIAL PAPER TERM MODE, LONG TERM RATE
MODE OR THE REPS MODE. Each Note in a Long Term Rate Period may be remarketed in
the same Interest Rate Period or converted at the option of the Company to a
different Long Term Rate Period or from the Long Term Rate Mode to the
Commercial Paper Term Mode or the REPS Mode, or from the REPS Mode to a
different REPS Mode or to the Long Term Rate Mode or the Commercial Paper Term
Mode, on any Interest Rate Adjustment Date for such Note upon receipt by the
Trustee and the Remarketing Agent for such Note of a Conversion Notice from the
Company not less than ten (10) days prior to such Interest Rate Adjustment
Dates; PROVIDED that the notice required for conversion from the initial REPS
Mode shall not be required until the latest of the day after the Initial
Callholder notifies the Company that it will not purchase the Notes for
remarketing, the day the Initial Callholder fails to so purchase the Notes or
the day the Company elects to convert the Notes to a new Interest Rate Mode
after the Initial Callholder has elected to remarket the Notes.

         (d) CONVERSION NOTICE. Each Conversion Notice must state each Note to
which it relates and the new Interest Rate Mode (if applicable), the new
Interest Rate Period, the date of the applicable conversion (the "CONVERSION
DATE") and, with respect to any Long Term Rate Period, any optional redemption
or repayment terms for each such Note.

         (e) REVOCATION OR CHANGE OF CONVERSION NOTICE OR FLOATING INTEREST RATE
NOTICE.

<PAGE>

The Company may, upon written notice received by the Trustee and the applicable
Remarketing Agent, revoke any Conversion Notice or Floating Interest Rate Notice
or change the Interest Rate Mode to which such Conversion Notice relates or
change any Floating Interest Rate Notice up to 9:30 a.m., New York City time, on
the Conversion Date, subject to the limitation set forth in subsection (f) of
this Section. If the Company revokes a Conversion Notice or the Trustee and the
Remarketing Agent fail to receive a Conversion Notice from the Company by the
specified date in advance of the Interest Rate Adjustment Date for a Note, the
Note shall be converted automatically to the Weekly Rate Period.

         (f) LIMITATION ON CONVERSION, CHANGE OF CONVERSION NOTICE OR FLOATING
INTEREST RATE NOTICE AND REVOCATION. Notwithstanding the foregoing subsections
(a), (b), (c), (d) and (e), the Company may not, without the consent of the
applicable Remarketing Agent, convert any Note or revoke or change any
Conversion Notice or Floating Interest Rate Notice at or after the time at which
such Remarketing Agent has determined the interest rate, or Spread (if any) and
Spread Multiplier (if any), for any Note being remarketed (I.E., the time at
which such Note has been successfully remarketed, subject to settlement on the
related Interest Rate Adjustment Date). The Remarketing Agent may advise the
Company of indicative rates from time to time, or at any time upon the request
of the Company, prior to making such determination of the interest rate, Spread
or Spread Multiplier, as the case may be.

         SECTION 208. AUTOMATIC TENDER OF NOTES ON THE INTEREST RATE ADJUSTMENT
DATE

         Each Note shall be automatically tendered for purchase, or deemed
tendered for purchase, on each Interest Rate Adjustment Date relating thereto.
Notes shall be purchased or redeemed on the Interest Rate Adjustment Date
relating thereto as described in Section 209 or 210 hereof.

         SECTION 209. REMARKETING

         (a) APPOINTMENT OF REMARKETING AGENT. In connection with the conversion
by the Company of any Note as set forth in Section 207 hereof, the Company shall
enter into a remarketing agreement with a Remarketing Agent on or prior to the
remarketing of such Notes, which Remarketing Agent shall be responsible for the
remarketing of such Notes. When any Note is tendered under Section 208 hereof to
the Remarketing Agent for remarketing, the Remarketing Agent will use its
reasonable efforts to remarket such Note on behalf of the Beneficial Owner
thereof at a price equal to 100% of the principal amount thereof. The
Remarketing Agent may purchase tendered Notes for its own account in a
remarketing, but will not be obligated to do so. The Company may offer to
purchase Notes in a remarketing, PROVIDED that the interest rate established
with respect to Notes in such remarketing is not different from the interest
rate that would have been established if the Company had not purchased such
Notes. Any Notes for which the Company shall have given a notice of redemption
to the Trustee and the Remarketing Agent will not be considered in a
remarketing.

         (b) REMARKETING PROCEDURES. With respect to each Note for which there
is to be established an interest rate from time to time by a Remarketing Agent
responsible for the remarketing thereof, such interest rate shall be set in
accordance with the procedures of paragraphs (i) and (ii) below.

<PAGE>

                  (i) DETERMINATION OF INTEREST RATE. By 11:00 a.m., New York
City time, on the Interest Rate Adjustment Date for any Note, the applicable
Remarketing Agent will determine the interest rate for such Note being
remarketed to the nearest one hundred thousandth (0.00001) of one percent per
annum for the next Interest Rate Period in the case of a fixed interest rate,
and the Spread (if any) and Spread Multiplier (if any) in the case of a floating
interest rate; PROVIDED, that between 11:00 a.m., New York City time, and 11:50
a.m., New York City time, the Remarketing Agent and the Standby Remarketing
Agent, if any, will use their reasonable efforts to determine the interest rate
for any Notes not successfully remarketed as of the applicable deadline
specified in this paragraph. In determining the applicable interest rate for
such Note and other terms, such Remarketing Agent will, after taking into
account market conditions as reflected in the prevailing yields on fixed and
variable rate taxable debt securities, (i) consider the principal amount of all
Notes tendered or to be tendered on such date and the principal amount of such
Notes prospective purchasers are or may be willing to purchase and (ii) contact,
by telephone or otherwise, prospective purchasers and ascertain the interest
rates therefor at which they would be willing to hold or purchase such Notes.

                  (ii) NOTIFICATION OF RESULTS; SETTLEMENT. By 12:30 p.m., New
York City time, on the Interest Rate Adjustment Date of any Notes, the
applicable Remarketing Agent will notify the Company and the Trustee in writing
(which may include facsimile or other electronic transmission), of (i) the
interest rate or, in the case of a floating interest rate, the initial interest
rate, the Spread and Spread Multiplier and the initial Interest Reset Date,
applicable to such Notes for the next Interest Rate Period, (ii) the Interest
Rate Adjustment Date, (iii) the Interest Payment Dates for any Notes in the
Commercial Paper Term Mode (if other than the Interest Rate Adjustment Date),
the Long Term Rate Mode or the REPS Mode, (iv) the optional redemption terms, if
any, and early remarketing terms, if any, in the case of a remarketing into a
Long Term Rate Period, (v) the aggregate principal amount of tendered Notes and
(vi) the aggregate principal amount of such tendered Notes that such Remarketing
Agent was able to remarket, at a price equal to 100% of the principal amount
thereof plus accrued interest, if any. Immediately after receiving such notice
and, in any case, not later than 1:30 p.m., New York City time, the Trustee will
transmit such information and any other settlement information required by the
Depositary, to the extent such information has been provided to the Trustee, to
the Depositary in accordance with the Depositary's procedures as in effect from
time to time.

         By telephone at approximately 1:00 p.m., New York City time, on such
Interest Rate Adjustment Date, the applicable Remarketing Agent will advise each
purchaser of Notes (or the DTC Participant of each such purchaser who it is
expected in turn will advise such purchaser) of the principal amount of such
Notes that such purchaser is to purchase.

         Each purchaser of Notes in a remarketing will be required to give
instructions to its DTC Participant to pay the purchase price therefor in same
day funds to the applicable Remarketing Agent against delivery of the principal
amount of such Notes by book-entry through the Depositary by 3:00 p.m., New York
City time, on the Interest Rate Adjustment Date.

         All tendered Notes will be automatically delivered to the account of
the Trustee (or such other account meeting the requirements of the Depositary's
procedures as in effect from time to

<PAGE>

time), by book-entry through the Depositary against payment of the purchase
price or redemption price therefor, on the Interest Rate Adjustment Date
relating thereto.

         The applicable Remarketing Agent will make, or cause the Trustee to
make, payment to the DTC Participant of each tendering Beneficial Owner of Notes
subject to a remarketing, by book-entry through the Depositary by the close of
business on the Interest Rate Adjustment Date against delivery through the
Depositary of such Beneficial Owner's tendered Notes, of the purchase price for
tendered Notes that have been sold in the remarketing. If any such Notes were
purchased pursuant to a Special Mandatory Purchase, subject to receipt of funds
from the Company or, if applicable, an institution providing credit support, as
the case may be, the Trustee will make such payment of the purchase price of
such Notes plus accrued interest, if any, to such date.

         The transactions described above for a remarketing of any Notes will be
executed on the Interest Rate Adjustment Date for such Notes through the
Depositary in accordance with the procedures of the Depositary, and the accounts
of the respective the DTC Participants will be debited and credited and such
Notes delivered by book-entry as necessary to effect the purchases and sales
thereof, in each case as determined in the related remarketing.

         Except as otherwise set forth in Section 210 hereof, any Notes tendered
in a remarketing will be purchased solely out of the proceeds received from
purchasers of such Notes in such remarketing, and none of the Trustee, the
applicable Remarketing Agent, any Standby Remarketing Agent or the Company will
be obligated to provide funds to make payment upon any Beneficial Owner's tender
in a remarketing.

         Although tendered Notes will be subject to purchase by a Remarketing
Agent in a remarketing, such Remarketing Agent and any Standby Remarketing Agent
will not be obligated to purchase any such Notes.

         The settlement and remarketing procedures described above, including
provisions for payment by purchasers of tendered Notes or for payment to selling
Beneficial Owners of tendered Notes, may be modified to the extent required by
the Depositary. In addition, each Remarketing Agent may, in accordance with the
terms of the Indenture, modify the settlement and remarketing procedures set
forth above in order to facilitate the settlement and remarketing process.

         As long as the Depositary's nominee holds the certificates representing
the Notes in the book-entry system of the Depositary, no certificates for such
Notes will be delivered by any selling Beneficial Owner to reflect any transfer
of Notes effected in any remarketing.

         The Trustee shall confirm to the Depositary the interest rate for the
following Interest Rate Period in accordance with the Depositary's procedures as
in effect from time to time.

         The interest rate announced by the applicable Remarketing Agent, absent
manifest error, shall be binding and conclusive upon the Beneficial Owners, the
Company and the Trustee.

<PAGE>

          (c) FAILED REMARKETING. Notes not successfully remarketed will be
subject to Special Mandatory Purchase by the Company as set forth in Section 210
hereof.

         SECTION 210. PURCHASE AND REDEMPTION OF NOTES

         (a) SPECIAL MANDATORY PURCHASE. Subject to certain exceptions, if on
any Interest Rate Adjustment Date for any Notes, the applicable Remarketing
Agent and the applicable Standby Remarketing Agent(s) have not remarketed all
such Notes, the Notes that have not been remarketed are subject to Special
Mandatory Purchase (a "SPECIAL MANDATORY PURCHASE") by the Company. The Company
is obligated to pay all accrued and unpaid interest, if any, on unremarketed
Notes to such Interest Rate Adjustment Date. Payment of the principal amount of
unremarketed Notes by the Company, and payment of accrued and unpaid interest,
if any, by the Company, will be made by deposit of same-day funds with the
Trustee (or such other account meeting the requirements of the Depositary's
procedures as in effect from time to time) irrevocably in trust for the benefit
of the Beneficial Owners of Notes subject to Special Mandatory Purchase by 3:00
p.m., New York City time, on such Interest Rate Adjustment Date.

         Failure by the Company to purchase Notes pursuant to a Special
Mandatory Purchase will constitute an Event of Default under the Indenture as
set forth in Section 401 hereof in which event the date of such failure shall
constitute a date of Maturity for such Notes and the principal thereof may be
declared due and payable in the manner and with the effect provided in the
Indenture. Following such failure to pay pursuant to a Special Mandatory
Purchase, such Notes will bear interest at the Special Interest Rate as provided
for in Section 205 hereof.

         (b) OPTIONAL REDEMPTION ON ANY INTEREST RATE ADJUSTMENT DATE. Each Note
will be subject to redemption at the option of the Company in whole or in part
on any Interest Rate Adjustment Date relating thereto without notice to the
holders thereof at a redemption price equal to 100% of the principal amount
thereof.

         (c) REDEMPTION WHILE NOTES ARE IN THE LONG TERM RATE MODE. Any Notes in
the Long Term Rate Mode are subject to redemption at the option of the Company
at the times and upon the terms specified at the time of conversion to or within
such Long Term Rate Mode.

         (d) ALLOCATION. Except in the case of a Special Mandatory Purchase, if
the Notes are to be redeemed in part, the Depositary, after receiving notice of
redemption specifying the aggregate principal amount of Notes to be so redeemed,
will determine by lot (or otherwise in accordance with the procedures of the
Depositary) the principal amount of such Notes to be redeemed from the account
of each DTC Participant. After making its determination as described above, the
Depositary will give notice of such determination to each DTC Participant from
whose account such Notes are to be redeemed. Each such DTC Participant, upon
receipt of such notice will in turn determine the principal amount of Notes to
be redeemed from the accounts of the Beneficial Owners of such Notes for which
it serves as DTC Participant, and give notice of such determination to the
Remarketing Agent.

         SECTION 211. FORM AND OTHER TERMS OF THE NOTES

<PAGE>

         (a) Attached hereto as EXHIBIT A is the form of Note, which form is
hereby established as the form in which Notes may be issued bearing interest at
the Initial Interest Rate or in the Commercial Paper Term Mode, the Long Term
Rate Mode or the REPS Mode. Annex A to EXHIBIT A is deemed to be a part of such
Note and such Annex may be changed upon the mutual agreement of the Company and
the Trustee to reflect changes occasioned by remarketings.

         (b) Subject to (a) above, any Note may be issued in such other form as
may be provided by, or not inconsistent with, the terms of the Original
Indenture and this Second Supplemental Indenture.

                                 ARTICLE THREE

                                  THE REPS MODE

         SECTION 301. APPLICABILITY OF ARTICLE

         The provisions of this Article Three shall apply to any Note in the
REPS Mode. To the extent that any provision of this Article Three conflicts with
any provision of Article Two, the provisions set forth in this Article Three
shall govern.

         SECTION 302. INITIAL REPS RATE PERIOD

     The Notes shall be issued initially in a REPS Mode with respect to which
the Company shall have on the Original Issue Date entered into a REPS
Remarketing Agreement. With respect to Notes within a REPS Rate Period
commencing on the Original Issue Date, references in this Article Three to (i)
the Callholder and REPS Remarketing Date shall mean the Initial Callholder and
the Initial REPS Remarketing Date and (ii) the Interest Rate Adjustment Date
upon which the REPS Rate Period commences shall mean the Original Issue Date.

         SECTION 303. INTEREST TO REPS REMARKETING DATE

         Each Note in the REPS Mode will bear interest at the annual interest
rate established by the Callholder from, and including, the Interest Rate
Adjustment Date commencing the Interest Rate Period for the REPS Mode to, but
excluding, the REPS Remarketing Date. Such interest rate will be the minimum
rate of interest and, in the case of a floating interest rate, Spread (if any)
and Spread Multiplier (if any) necessary in the judgment of such Callholder to
produce a par bid in the secondary market for such Note on the date the interest
rate is established. The designated REPS Remarketing Date shall be an Interest
Payment Date within such Interest Rate Period.

         SECTION 304. TENDER TO AND REMARKETING BY THE CALLHOLDER

         The obligations of the Callholder set forth herein shall be performed
under the applicable REPS Remarketing Agreement.

         (a) MANDATORY TENDER. Provided that the Callholder gives notice to the
Company and

<PAGE>

the Trustee on or before the Notification Date of its intention to purchase the
Notes for remarketing, each Note will be automatically tendered, or deemed
tendered, to the Callholder for remarketing at the REPS Coupon Reset Rate on the
REPS Remarketing Date, except in the circumstances described in subsection
(b)(2) and Section 305 below with regard to failure of the Callholder to
purchase the Notes. The purchase price for the tendered Notes to be paid by the
Callholder will equal 100% of the principal amount thereof. When the Notes are
tendered for remarketing, the Callholder may remarket the Notes for its own
account at varying prices to be determined by the Callholder at the time of each
sale. From and including the REPS Remarketing Date to, but excluding, the next
succeeding Interest Rate Adjustment Date, the Notes will bear interest at the
REPS Coupon Reset Rate. If the Callholder elects to remarket the Notes, the
obligation of the Callholder to purchase the Notes on the REPS Remarketing Date
is subject to the conditions set forth in the applicable REPS Remarketing
Agreement.

         (b) REMARKETING. The remarketing of the notes purchased by Callholder
under the REPS Remarketing Agreement shall be carried out in accordance with the
following procedures:

                  (1) THE REPS COUPON RESET RATE. Subject to the Callholder's
election to remarket the Notes as provided in subsection (a) above, the REPS
Coupon Reset Rate shall be determined by the Callholder by 3:30 p.m., New York
City time, on the third Business Day immediately preceding the REPS Remarketing
Date (the "DETERMINATION DATE") to the nearest one hundred-thousandth (0.00001)
of one percent per annum and will be equal to the Base Rate established by the
Callholder, after consultation with the Company, at or prior to the commencement
of the REPS Mode (the "BASE RATE"), plus the Applicable Spread, which will be
based on the Dollar Price of the Notes.

                  (2) NOTIFICATION OF RESULTS; SETTLEMENT. Provided the
Callholder has previously notified the Company and the Trustee on the
Notification Date of its intention to purchase all tendered Notes on the REPS
Remarketing Date, the Callholder will notify the Company, the Trustee and the
Depositary by telephone, confirmed in writing, by 4:00 p.m., New York City time,
on the Determination Date, of the REPS Coupon Reset Rate.

         All of the tendered Notes will be automatically delivered to the
account of the Trustee, by book-entry through the Depositary pending payment of
the purchase price therefor, on the REPS Remarketing Date.

         In the event that the Callholder purchases the tendered Notes on the
REPS Remarketing Date, the Callholder will make or cause the Trustee to make
payment to the DTC Participant of each tendering Beneficial Owner of Notes, by
book-entry through the Depositary by the close of business on the REPS
Remarketing Date against delivery through the Depositary of such Beneficial
Owner's tendered Notes. If the Callholder does not purchase all of the Notes on
the REPS Remarketing Date, the Company may attempt to convert the Notes to a new
Interest Rate Mode, such interest rate to be determined as provided for in
Section 205 hereof, and settlement will be effected as described in this Section
304(b). In any case, the Company will make or cause the Trustee to make payment
of interest to each Beneficial Owner of Notes due on the REPS Remarketing Date
by book-entry through the Depositary by the close of business on the

<PAGE>

REPS Remarketing Date.

         The transactions in this subsection (b)(2) hereof will be executed on
the REPS Remarketing Date through the Depositary in accordance with the
procedures of the Depositary, and the accounts of the respective DTC
Participants will be debited and credited and the Notes delivered by book-entry
as necessary to effect the purchases and sales thereof.

         Transactions involving the sale and purchase of Notes remarketed by the
Callholder on and after a REPS Remarketing Date will settle in immediately
available funds through the Depositary's Same-Day Funds Settlement System.

         The tender and settlement procedures described above, including
provisions for payment by purchasers of Notes in the remarketing or for payment
to selling Beneficial Owners of tendered Notes, may be modified to the extent
required by the Depositary or to the extent required to facilitate the tender
and remarketing of Notes in certificated form, if the book-entry system is no
longer available for the Notes at the time of the remarketing. In addition, the
Callholder may, in accordance with the terms of the Indenture, modify the tender
and settlement procedures set forth above in order to facilitate the tender and
settlement process.

         As long as the Depositary's nominee holds the certificates representing
any Notes in the book-entry system of the Depositary, no certificates for such
Notes will be delivered by any selling Beneficial Owner to reflect any transfer
of such Notes effected in the remarketing.

         SECTION 305. CONVERSION OR REDEMPTION FOLLOWING ELECTION BY THE
CALLHOLDER TO REMARKET

         (a) If the Callholder elects to remarket the Notes on the REPS
Remarketing Date, the Notes will be subject to mandatory tender to the
Callholder for remarketing on such date, in each case subject to the conditions
set forth in Section 304 hereof, and to the Company's right to either convert
the Notes to a new Interest Rate Mode on the REPS Remarketing Date or to redeem
the Notes from the Callholder, in each case as described in the next sentence.
The Company will notify the Callholder and the Trustee, not later than the
Business Day immediately preceding the Determination Date, if the Company
irrevocably elects to exercise its right to either convert the Notes to a new
Interest Rate Mode, or to redeem the Notes in whole, but not in part, from the
Callholder at the Optional Redemption Price, in each case on the REPS
Remarketing Date.

         (b) In the event that the Company irrevocably elects to convert the
Notes to a new Interest Rate Mode, then as of the REPS Remarketing Date the
Notes will cease to be in the REPS Mode, the REPS Remarketing Date will
constitute an Interest Rate Adjustment Date, and the Notes shall be subject to
remarketing on such date by a Remarketing Agent appointed in the Commercial
Paper Term Mode or the Long Term Rate Mode or a new REPS Mode established in
accordance with the procedures set forth in Section 207 hereof; PROVIDED that,
in such case, the notice period required for conversion shall be the period
commencing on the Determination Date. In such case, the Company shall pay to the
Callholder the excess of the Dollar Price of the Notes over 100% of the
principal amount of the Notes in same-day funds by wire transfer to an account
designated by the Callholder on the REPS Remarketing Date.

<PAGE>

         (c) In the event that the Company irrevocably elects to redeem the
Notes, the "OPTIONAL REDEMPTION PRICE" shall be the greater of either (i) 100%
of the principal amount of the Notes or (ii) the Dollar Price, plus in either
case accrued and unpaid interest from the REPS Remarketing Date on the principal
amount being redeemed to the date of redemption. If the Company elects to redeem
the Notes, it shall pay the redemption price therefor in same-day funds by wire
transfer to an account designated by the Callholder on the REPS Remarketing
Date.

         (d) If notice has been given as provided in the Indenture and funds for
the redemption of any Notes called for redemption shall have been made available
on the redemption date referred to in such notice, such Notes shall cease to
bear interest on the date fixed for such redemption specified in such notice and
the only right of the Callholder from and after the redemption date shall be to
receive payment of the Optional Redemption Price upon surrender of such Notes in
accordance with such notice.

                                  ARTICLE FOUR

             ADDITIONAL EVENTS OF DEFAULT WITH RESPECT TO THE NOTES

         SECTION 401. DEFINITION

         All of the events specified in clauses (1), (2) and (4) through (6) of
Section 501(a) of the Original Indenture shall be "Events of Default" with
respect to the Notes. In addition, the following event that shall have occurred
and be continuing shall be an additional Event of Default with respect to each
series of Notes: (7) default in the payment of the purchase price with respect
to the Special Mandatory Purchase on the applicable Interest Rate Adjustment
Date in accordance with Section 210(a) hereof.

                                  ARTICLE FIVE

                    AUTHENTICATION AND DELIVERY OF THE NOTES

         SECTION 501. AUTHENTICATION AND DELIVERY

         As provided in and pursuant to Section 303 of the Original Indenture,
each time that the Company delivers Notes to the Trustee or Authenticating Agent
for authentication, the Company shall deliver a Supplemental Company Order in
the form of EXHIBIT B to this Second Supplemental Indenture for the
authentication and delivery of such Notes and the Trustee or such Authenticating
Agent shall authenticate and deliver such Notes.

                                  ARTICLE SIX

<PAGE>

                             SUPPLEMENTAL INDENTURES

         SECTION 601. EFFECT ON ORIGINAL INDENTURE

         The Second Supplemental Indenture is a supplement to the Original
Indenture. As supplemented by this Second Supplemental Indenture, the Original
Indenture is in all respects ratified, approved and confirmed, and the Original
Indenture and this Second Supplemental Indenture shall together constitute one
and the same instrument.

                                 ARTICLE SEVEN

                                  MISCELLANEOUS

         SECTION 701. COUNTERPARTS

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

         SECTION 702. RECITALS

         The recitals contained herein shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this
Second Supplemental Indenture.

         SECTION 703. GOVERNING LAW

         This Second Supplemental Indenture shall be governed by and construed
in accordance with the laws of the jurisdiction that govern the Original
Indenture and its construction.

              [The balance of this page intentionally left blank.]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Second
Supplemental Indenture to be duly executed and their respective corporate seals
to be hereunto affixed and attested, all as of the date and year first written
above.

                                   TAMPA ELECTRIC COMPANY

                                   By:  /s/ ROBERT D. FAGAN
                                      -----------------------------------------
                                      Name:    Robert D. Fagan
                                      Title:   Chairman of the Board and Chief
                                               Executive Officer

[Corporate Seal]

                        THE BANK OF NEW YORK, AS TRUSTEE

                                            By:  /s/ JAMES HALL
                                               ------------------------------
                                               Name:  James Hall
                                               Title: Vice President

[Corporate Seal]

<PAGE>

State of Pennsylvania                       )
                                            ) SS.:
County of Schuylkill                        )

     On the 16th day of August, 2000 before me personally came Robert D. Fagan,
to me known, who, being by me duly sworn, did depose and say that s/he is Robert
D. Fagan of TAMPA ELECTRIC COMPANY, one of the corporations described in and
which executed the foregoing instrument; that s/he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that s/he signed his/her name thereto by like authority.

                                             /s/ DEBRA L. BADDICK
                                             ----------------------------------
                                             Notary Public

State of New York                   )
                                    ) SS.:
County of New York                  )

         On the 17th day of August 2000 before me personally came James Hall to
me known, who, being by me duly sworn, did depose and say that he/she is Vice
President of THE BANK OF NEW YORK, one of the corporations described in and
which executed the foregoing instrument; that he/she knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that he/she signed his/her names thereto by like authority.

                                           /s/ JEAN F. NEWMAN
                                           ------------------------------------
                                           Notary Public

<PAGE>

                                                                       EXHIBIT A

                                  FORM OF NOTE

<PAGE>

                                                                       EXHIBIT B

                             TAMPA ELECTRIC COMPANY

                       7 3/8% RESET PUT SECURITIES DUE 2015

                           SUPPLEMENTAL COMPANY ORDER

         Pursuant to Article Five of the Second Supplemental Indenture, dated as
of August 15, 2000, to the Indenture, dated as of July 1, 1998, as amended, you
are instructed to prepare and authenticate a Note, of the series identified
above, in the principal amount of $______________. The Note is being delivered
in exchange for issued and outstanding Notes of the series identified above.

         IN WITNESS WHEREOF, I have hereunto set my hand this ___ day of
________, ____.

                                            TAMPA ELECTRIC COMPANY

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

<PAGE>

                                                                       EXHIBIT C

[Tampa Electric Company Letterhead]

                          FLOATING INTEREST RATE NOTICE

                                                                          [Date]

To:      [Remarketing Agent(s)]
         [Address]
         The Bank of New York
         10161 Centurion Parkway
         Jacksonville, Florida 32256
         Attention:   Corporate Trust Trustee Administration
         Telecopy:    (904) 645-1997

         Re: 7 3/8% REset Put Securities Due 2015 (the "Notes")

Ladies and Gentlemen:

         This Floating Interest Rate Notice relates to (i) $_______________
principal amount of the Notes (CUSIP No. ___________) and (ii) the proposed
[Long Term Rate Period] [REPS Rate Period] of the Note (the "Interest Rate
Period") commencing on ___________ and ending on ___________. Capitalized terms
used and not otherwise defined herein shall have their respective meanings
assigned to them in the Notes.

         We hereby notify you that the above-referenced Notes will bear the
following floating rate terms during the Interest Rate Period specified above:

1.       The Interest Rate Basis(es) shall be:

       [      ] CD Rate, where the Index Maturity will be ______________;

       [      ] CMT Rate, where the Designated CMT Maturity Index will be
                _____________, and the Designated CMT Telerate Page will be
                ____________;

       [      ] Federal Funds Rate;

       [      ] LIBOR Reuters, where the Index Currency will be ___________, and
                the Designated LIBOR Page will be __________;

<PAGE>

       [      ] LIBOR Telerate, where the Index Currency will be _____________ ,
                and the Designated LIBOR Page will be _____________;

       [      ] Prime Rate;

       [      ] Treasury Rate

2. The floating interest rate will be reset as follows:

       [      ] Initial Interest Reset Date will be __________ ;

       [      ] Interest Reset Dates will be _____________;

       [      ] Interest Reset Period will be ____________;

3. The interest will be paid as follows:

       [      ] Interest Payment Dates will be _____________;

       [      ] Interest Rate Period will be ____________;

       [      ] Index Maturity will be _________;

       [      ] Floating Rate Maximum Interest Rate will be ____________;

       [      ] Floating Rate Minimum Interest Rate will be ______________.

4. Day Count Convention:

       [      ] Actual/360;

       [      ] Actual/Actual;

       [      ] 30/360.

5. Other terms: [ ]

     Each Beneficial Owner of the Note will be deemed to have tendered such Note
as of the Interest Rate Adjustment Date and will not be entitled to further
accrual of interest after the Interest Rate Adjustment Date.

                                      TAMPA ELECTRIC COMPANY

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

<PAGE>

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