Document:

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                                                                    Exhibit 4.14

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                            DOMINION RESOURCES, INC.

                                       and

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

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

                              REMARKETING AGREEMENT

                           Dated as of         , 20
                                       --------    --

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                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

Section 1.    Definitions.................................................    1

Section 2.    Appointment and Obligations of the Remarketing Agent........    3

Section 3.    Representations, Warranties and Agreements of the Company...    7

Section 4.    Officers' Certificates......................................    9

Section 5.    Fees and Expenses...........................................   10

Section 6.    Further Agreements of the Company...........................   10

Section 7.    Conditions to the Remarketing Agent's Obligations...........   12

Section 8.    Indemnification.............................................   18

Section 9.    Contribution................................................   20

Section 10.   Resignation and Removal of the Remarketing Agent............   21

Section 11.   Dealing in the Remarketing Senior Notes.....................   21

Section 12.   Remarketing Agent's Performance; Duty of Care...............   21

Section 13.   Termination.................................................   22

Section 14.   Notices.....................................................   22

Section 15.   Persons Entitled to Benefit of Agreement....................   22

Section 16.   Survival....................................................   23

Section 17.   Governing Law...............................................   23

Section 18.   Counterparts................................................   23

Section 19.   Headings....................................................   23

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                            DOMINION RESOURCES, INC.

               20   Series       % Senior Notes, due
                 --        - ----                    ------------

                              REMARKETING AGREEMENT

                                                                          , 20
                                                                  --------    --

[Insert name and address of
Remarketing Agent]

Ladies and Gentlemen:

                                     is undertaking to remarket the 20   Series
          --------------------------                                  --
      % Senior Notes, due              (the "Senior Notes"), issued by Dominion
- ----                    ------------
Resources, Inc., a Virginia corporation (the "Company"), under the Indenture,
dated as of June 1, 2000, between the Company and JPMorgan Chase Bank (formerly
known as The Chase Manhattan Bank), as Trustee (the "Indenture Trustee"), as
amended and supplemented by the       Supplemental Indenture, dated        ,
                                -----                               -------
20   (as amended and supplemented, the "Supplemental Indenture").
  --

          The Remarketing of the Senior Notes is provided for in the
Supplemental Indenture, the Purchase Agreement and the Pledge Agreement.

          Section 1. Definitions.

     (a) Capitalized terms used and not defined in this Agreement shall have the
meanings set forth in the Purchase Contract Agreement, dated as of         ,
                                                                   --------
20   (the "Purchase Contract Agreement"), between the Company and
  --
                   , as Purchase Contract Agent (the "Purchase Contract Agent),
-------------------
in the Indenture or in the Supplemental Indenture.

     (b) As used in this Agreement, in addition to the terms defined in the
opening paragraph and in Section 1(a), the following terms have the following
meanings:

          "Agreement" means this Remarketing Agreement, as amended or
     supplemented from time to time;

          "Principal Amount" means the principal amount of a Senior Note, or
     $50;

          "Remarketing Senior Notes" means collectively (1) the Pledged Senior
     Notes and

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                                                                             2

     (2) the Separated Senior Notes of holders that have elected to participate
     in the Remarketing under Section 106 of the Supplemental Indenture and
     Section 5.7 of the Pledge Agreement, in each case as identified to the
     Remarketing Agent by the Purchase Contract Agent (with respect to the
     Pledged Senior Notes to be remarketed) and the Collateral Agent (with
     respect to the Separated Senior Notes to be remarketed) by 11:00 a.m. (New
     York City time) on the Business Day preceding the Initial Remarketing Date
     or, if applicable, any Subsequent Remarketing Dates or the Final
     Remarketing Date.

          "Remarketing Procedures" means the procedures in connection with the
     Remarketing of the Senior Notes described in the Supplemental Indenture,
     the Purchase Contract Agreement, the Pledge Agreement and this Agreement;
     and

          "Subsidiary" and "Significant Subsidiary" have the meanings set forth
     in Rule 405 under the Securities Act.

          The terms set forth below have the meanings given them in the
     referenced sections of this Agreement:

     Term                                Section
     ---------------------------------   -------
     Depositary Participant                2(e)

     Effective Date                        3(b)

     Effective Time                        3(b)

     Failed Remarketing                    2(f)

     Final Remarketing                     2(d)

     Final Remarketing Date                2(d)

     Initial Remarketing                   2(c)

     Initial Remarketing Date              2(c)

     Material Adverse Effect               3(f)

     Preliminary Prospectus                3(b)

     Prospectus                            3(b)

     Remarketing Agent                     2(a)

     Remarketing Date                      2(e)

     Remarketing Materials                 3(b)

     Remarketing Settlement Date           2(e)

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                                                                               3

     Rules and Regulations                 3(b)

     Securities Act                        3(b)

     Subsequent Remarketing                2(d)

     Subsequent Remarketing Date           2(d)

     Successful Initial Remarketing        2(e)

     Successful Final Remarketing          2(e)

     Successful Remarketing                2(e)

     Successful Subsequent Remarketing     2(e)

     Transactions                          3(h)

          Section 2. Appointment and Obligations of the Remarketing Agent.

     (a) The Company hereby appoints                           as exclusive
                                     -------------------------
remarketing agent (the "Remarketing Agent"), and
                                                 -------------------------
hereby accepts appointment as Remarketing Agent, for the purpose of (1)
Remarketing the Remarketing Senior Notes on behalf of the holders thereof and
(2) performing such other duties as are assigned to the Remarketing Agent in the
Remarketing Procedures, all in accordance with the Remarketing Procedures.

     (b) The Remarketing Agent agrees to (1) use commercially reasonable efforts
to remarket the Remarketing Senior Notes tendered or deemed tendered to the
Remarketing Agent in the Remarketing, (2) provide prompt notice of the Reset
Rate as set forth in this Agreement and (3) carry out such other duties as are
assigned to the Remarketing Agent in the Remarketing Procedures, all in
accordance with the provisions of the Remarketing Procedures.

     (c) On                   (the "Initial Remarketing Date"), the Remarketing
            -----------------
Agent shall use its commercially reasonable efforts to remarket (the "Initial
Remarketing") the Remarketing Senior Notes at a price at least equal to the
Remarketing Value under the Remarketing Procedures. If, as a result of such
efforts, the Remarketing Agent determines that it will be able to remarket all
of the Remarketing Senior Notes tendered or deemed tendered for purchase at a
price at least equal to the Remarketing Value before 4:00 p.m. (New York City
time) on the Initial Remarketing Date, the Remarketing Agent shall determine the
Reset Rate that will enable it to remarket all Remarketing Senior Notes tendered
or deemed tendered for Remarketing at an interest rate on the Initial
Remarketing Date sufficient to allow the Remarketing to occur at a price equal
to the Remarketing Value.

     (d) If, despite the commercially reasonable efforts described in the
preceding paragraph, the Remarketing Agent cannot remarket the Remarketing
Senior Notes on the Initial Remarketing Date, the Remarketing Agent will
continue to use its commercially reasonable efforts to remarket the Remarketing
Senior Notes (i) on one or more subsequent occasions from

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                                                                               4

the Initial Remarketing Date to, and including, the ninth Business Day preceding
the Purchase Contract Settlement Date and (ii) if necessary, on the third
Business Day preceding the Purchase Contract Settlement Date, and in connection
therewith to determine the Reset Rate at an interest rate on the Remarketing
Date, if any, sufficient to allow the Remarketing at a price equal to the
Remarketing Value as set forth herein and (each such subsequent Remarketing up
to and including the ninth Business Day preceding the Purchase Contract
Settlement Date being referred to as a "Subsequent Remarketing" and each such
date to be referred to as, a "Subsequent Remarketing Date"; and the Remarketing
on the third Business Day preceding the Purchase Contract Settlement Date, being
referred to as the "Final Remarketing" and such date to be referred to as, the
"Final Remarketing Date;"), in each case in accordance with the Remarketing
Procedures; provided, however, that, the Final Remarketing, if at all, must
occur no later than on the third Business Day immediately preceding the Purchase
Contract Settlement Date.

     (e) If the Initial Remarketing, any Subsequent Remarketing or the Final
Remarketing is successful (respectively, a "Successful Initial Remarketing," a
"Successful Subsequent Remarketing" or a "Successful Final Remarketing"; any of
the foregoing, a "Successful Remarketing"; and the date of a Successful
Remarketing, the "Remarketing Date"), then:

     (i) By approximately 4:30 p.m. (New York City time) on such Remarketing
     Date, (A) the Remarketing Agent shall advise by telephone the Company, the
     Purchase Contract Agent, the Collateral Agent, the Securities Intermediary,
     the Depositary and the Trustee, of the Reset Rate determined in the
     Remarketing, (B) the Remarketing Agent shall advise each purchaser of
     Senior Notes sold in the Remarketing or such purchaser's DTC participant
     (the "Depositary Participant") of the Reset Rate and the number of Senior
     Notes such purchaser is to purchase, and (C) the Remarketing Agent shall
     request each purchaser to give instructions to its Depositary Participant
     to pay the purchase price on the third Business Day after the Remarketing
     Date (the "Remarketing Settlement Date") in same day funds against delivery
     of the Remarketing Senior Notes purchased through the facilities of the
     Depositary.

     In accordance with the Depositary's normal procedures, on the Remarketing
     Settlement Date or the Purchase Contract Settlement Date, as applicable,
     the transactions described above with respect to Senior Notes remarketed in
     the Remarketing shall be executed through the Depositary, and the accounts
     of the respective Depositary Participants shall be debited and credited,
     respectively, and such Remarketing Senior Notes delivered by book-entry, as
     necessary to effect purchases and sales of such Remarketing Senior Notes;
     provided, however, that, the settlement procedures set forth herein,
     including provisions for payment by purchasers of the Remarketing Senior
     Notes in the Remarketing, shall be subject to modification to the extent
     required by the Depositary or if the book-entry system is no longer
     available for the Remarketing Senior Notes at the time of the Remarketing,
     to facilitate the remarketing of the Remarketing Senior Notes in
     certificated form and the Remarketing Agent may modify such settlement
     procedures in order to facilitate the settlement process.

     (ii) Upon receipt of the proceeds from a Successful Remarketing, the
     Remarketing Agent shall:

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                                                                               5

     (A) deduct and retain for itself an amount equal to     % of the Principal
                                                         ----
     Amount of the Remarketing Senior Notes as a fee for the performance of its
     services as Remarketing Agent hereunder;

     (B) (I) if the Successful Remarketing occurs before the third Business Day
     preceding the Purchase Contract Settlement Date, use the remaining proceeds
     with respect to the Pledged Senior Notes from such Successful Remarketing
     to purchase the Treasury Portfolio, in open market transactions and/or at
     Treasury auctions, described in clauses (1)(i) and (2)(i) of the definition
     of Remarketing Value and deliver such Treasury Portfolio to the Collateral
     Agent on the Remarketing Settlement Date or as soon thereafter as is
     practicable, or (II) if such Successful Remarketing occurs on the Final
     Remarketing Date, remit to the Collateral Agent on the Remarketing
     Settlement Date the portion of the remaining proceeds with respect to the
     Pledged Senior Notes from such Successful Remarketing in an amount equal to
     the aggregate principal amount of such Senior Notes.

     (C) if any Separated Senior Notes were included in such Successful
     Remarketing, remit to the Collateral Agent for payment to the holders of
     such Separated Senior Notes the amounts specified in clauses 1(ii) and
     2(ii) of the definition of Remarketing Value; and

     (D) remit any remaining balance of such proceeds after the application of
     such proceeds as set forth in clauses (A) through (C) above, if any, to the
     Purchase Contract Agent for the benefit of the Holders of the remarketed
     Pledged Senior Notes and to the Collateral Agent for the holders of any
     remarketed Separated Senior Notes, on a pro rata basis; provided, however,
     that if such Successful Remarketing is consummated after 4:30 p.m. (New
     York City time) on such Remarketing Date and, despite using its
     commercially reasonable efforts, the Remarketing Agent cannot cause the
     applications of the proceeds specified above to occur on the Remarketing
     Settlement Date, then the Remarketing Agent may make such applications and
     remittances on the next succeeding Business Day. The Remarketing Agent may,
     in its discretion, communicate with holders of the Senior Notes, and
     prospective purchasers of Remarketing Senior Notes in connection with its
     remarketing efforts in order to facilitate the remarketing and the intent
     and purpose of this Agreement despite the fact that such communication may
     not be expressly required herein.

     (f) If, by 4:00 p.m. (New York City time), on the ninth Business Day
preceding the Purchase Contract Settlement Date, the Remarketing Agent, despite
using its commercially reasonable efforts, has been and is unable to remarket
all of the Remarketing Senior Notes tendered for purchase at a price equal to at
least the Remarketing Value, the Remarketing Agent shall Transfer to the
Collateral Agent, by the sixth Business Day preceding the Purchase Contract
Settlement Date, the Pledged Senior Notes that that were to be remarketed in the
Initial or Subsequent Remarketing, whereupon the Collateral Agent shall, for the
benefit of the Company, hold such Pledged Senior Notes, to secure the obligation
of the related Holders of Corporate Units to purchase Common Stock under the
related Purchase Contracts.

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                                                                               6

     (g) If, (1) by 4:00 p.m. (New York City time), on the Final Remarketing
Date, the Remarketing Agent, despite using its commercially reasonable efforts,
has been and is unable to remarket all of the Remarketing Senior Notes tendered
for purchase at a price equal to at least the Remarketing Value, or (2) the
Remarketing Agent has determined that the Remarketing may not be commenced or
consummated as contemplated herein and by the Remarketing Procedures under
applicable law, a failed Remarketing (a "Failed Remarketing") shall be deemed to
have occurred. If a Failed Remarketing occurs, the Remarketing Agent and the
Company, as applicable, shall take the following actions:

     (i) The Remarketing Agent shall notify by telephone the Company, the
     Purchase Contract Agent, the Collateral Agent and the Trustee, that a
     Failed Remarketing has occurred, whereupon the Company shall notify the
     Depositary, by telephone, that a Failed Remarketing has occurred.

     (ii) The Company shall cause a notice of the Failed Remarketing to be sent
     to the holders of all Senior Notes and to be published in an Authorized
     Newspaper in New York City, in each case, no later than the Business Day
     preceding Purchase Contract Settlement Date.

     (iii) The Remarketing Agent shall determine the Reset Rate that will be
     equal to the Two Year Benchmark Rate plus the Applicable Spread in
     accordance with Section 106 of the Supplemental Indenture.

     (iv) The Remarketing Agent shall remit the Pledged Senior Notes that were
     to be remarketed to the Purchase Contract Agent and the Separated Senior
     Notes that were to be remarketed to the Collateral Agent.

     (g) If there are no Pledged Senior Notes and no holders of Separated Senior
Notes elect to participate in the Remarketing and deliver their Separated Senior
Notes and a notice of such election to the Collateral Agent by the Election Date
in accordance with the Supplemental Indenture, then:

     (i) the Remarketing Agent shall, in its sole discretion, determine the rate
     that, in its judgment, would have been established had a Remarketing been
     held on the Final Remarketing Date, and such rate shall be the Reset Rate;

     (ii) the Remarketing Agent shall advise by telephone the Company and the
     Trustee of such Reset Rate, whereupon the Company shall notify the
     Depositary in writing of such Reset Rate; and

     (iii) the Company shall cause a notice of such Reset Rate to be sent to the
     holders of all Senior Notes and to be published in an Authorized Newspaper
     in New York City, in each case, no later than the Business Day preceding
     the Purchase Contract Settlement Date.

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                                                                               7

          Section 3. Representations, Warranties and Agreements of the Company.

          The Company represents, warrants and agrees (i) on and as of the date
hereof, (ii) on and as of the date the Prospectus Supplement or other
Remarketing Materials (each as defined in Section 3(b) below) are first
distributed in connection with the Remarketing (the "Commencement Date"), and
(iii) on and as the Initial Remarketing Date and, if applicable, any Subsequent
Remarketing Date and the Final Remarketing Date that:

          (a) The conditions for use of Form S-3, as set forth in the General
     Instructions thereto, have been satisfied.

          (b) A registration statement on Form S-3 (File No. _________) and an
     amendment or amendments thereto with respect to the initial offering of the
     Senior Notes has (i) been prepared by the Company in conformity with the
     requirements of the Securities Act of 1933, as amended (the "Securities
     Act"), and the rules and regulations (the "Rules and Regulations") of the
     Commission thereunder, (ii) been filed with the Commission under the
     Securities Act and (iii) become effective under the Securities Act; a
     registration statement on Form S-3, if required to be filed in connection
     with the Remarketing, also may be prepared by the Company in conformity
     with the requirements of the Securities Act and the Rules and Regulations
     and filed with the Commission under the Securities Act; and the Indenture
     has been qualified under the Trust Indenture Act. Copies of such
     registration statement or registration statements that have become
     effective, and the amendment or amendments to such registration statements,
     have been delivered by the Company to the Remarketing Agent, in the case of
     documents not electronically available through the Commission's EDGAR
     filing system and, in the case of documents that are so available, to the
     extent requested by the Remarketing Agent.

          As used in this Agreement, "Effective Time" means the date and time as
     of which the last of such registration statements that have become
     effective or may be filed, or the most recent post-effective amendment
     thereto, if any, was declared effective by the Commission; "Effective Date"
     means the date of the Effective Time of such last registration statement;
     "Preliminary Prospectus" means each prospectus relating to the Remarketing
     Senior Notes included in such last registration statement, or amendment
     thereto, before it became effective under the Securities Act and any
     prospectus relating to the Remarketing Senior Notes filed by the Company
     under Rule 424(a) of the Rules and Regulations; "Registration Statement"
     means such last registration statement, as amended at its Effective Time,
     including documents incorporated by reference therein at such time and, if
     applicable, all information contained in the final prospectus filed with
     the Commission under Rule 424(b) of the Rules and Regulations, including
     any information deemed to be part of such Registration Statement as of the
     Effective Time under paragraph (b) of Rule 430A of the Rules and
     Regulations; and "Prospectus" means each final prospectus relating to the
     Remarketing Senior Notes, as first filed under Rule 424(b) of the Rules and
     Regulations.

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                                                                               8

          Reference made herein to any Preliminary Prospectus, the Prospectus or
     any other information furnished by the Company to the Remarketing Agent for
     distribution to investors in connection with the Remarketing (the
     "Remarketing Materials") shall be deemed to refer to and include any
     documents incorporated by reference therein under Item 12 of Form S-3 under
     the Securities Act as of the date of such Preliminary Prospectus or the
     Prospectus, as the case may be, or, in the case of Remarketing Materials,
     referred to as incorporated by reference therein, and any reference to any
     amendment or supplement to any Preliminary Prospectus, the Prospectus or
     the Remarketing Materials shall be deemed to refer to and include any
     document filed under the Exchange Act after the date of such Preliminary
     Prospectus or the Prospectus incorporated by reference therein under Item
     12 of Form S-3 or, if so incorporated, the Remarketing Materials, as the
     case may be; and any reference to any amendment to the Registration
     Statement shall be deemed to include any annual report of the Company filed
     with the Commission under Section 13(a) or 15(d) of the Exchange Act after
     the Effective Time that is incorporated by reference in the Registration
     Statement.

          (c) The Commission has not issued an order preventing or suspending
     the use of the Registration Statement, any Preliminary Prospectus, the
     Prospectus or the Remarketing Materials.

          (d) The Registration Statement conforms (and the Prospectus and any
     further amendments or supplements to the Registration Statement or the
     Prospectus, when they become effective or are filed with the Commission, as
     the case may be, will conform) in all respects to the requirements of the
     Securities Act and the Rules and Regulations, and the Registration
     Statement, the Prospectus and the Remarketing Materials do not and will
     not, as of the Effective Date (as to the Registration Statement and any
     amendment thereto), as of the applicable filing date (as to the Prospectus
     and any amendment or supplement thereto) and as of the Commencement Date
     and the Remarketing Date (as to the Registration Statement, the Prospectus
     and any Remarketing Materials) contain any untrue statement of a material
     fact or omit to state a material fact required to be stated therein or
     necessary to make the statements therein not misleading; provided that no
     representation and warranty is made as to the statement of eligibility and
     qualification on Form T-1 of the Indenture Trustee under the Trust
     Indenture Act, or as to information contained in or omitted from the
     Registration Statement, the Prospectus or the Remarketing Materials in
     reliance upon and in conformity with written information furnished to the
     Company by the Remarketing Agent specifically for inclusion therein; the
     Indenture conforms in all material respects to the requirements of the
     Trust Indenture Act and the applicable rules and regulations thereunder.

          (e) Deloitte & Touche LLP, who certified certain of the Company's
     financial statements incorporated by reference in the Registration
     Statement and the Prospectus (or any firm that subsequently serves as the
     Company's independent public accountants), are independent public
     accountants as required by the Securities Act and the Rules and
     Regulations.

          (f) Except as reflected in, or contemplated by, the Registration
     Statement, the Prospectus or the Remarketing Materials, since the
     respective most recent dates as of

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                                                                               9

     which information is given in the Registration Statement, the Prospectus or
     any Remarketing Materials, there has not been any material adverse change
     or event which would result in a material adverse effect on the condition
     of the Company and its subsidiaries taken as a whole, financial or
     otherwise (a "Material Adverse Effect"). The Company and its subsidiaries,
     taken as a whole, have no material contingent financial obligation which is
     not disclosed in the Registration Statement, the Prospectus or the
     Remarketing Materials.

          (g) All of the issued and outstanding capital stock or membership
     interests of each Significant Subsidiary of the Company have been duly
     authorized and are validly issued, fully paid and nonassessable and, with
     the exception of the outstanding preferred stock of Virginia Electric and
     Power Company which is owned by third parties (or any stock owned by third
     parties of any Significant Subsidiary that the Company acquires after the
     date hereof), is owned by the Company, directly or through subsidiaries,
     free and clear of any security interest, mortgage, pledge, lien, claim,
     encumbrance or equitable right.

          (h) The execution, delivery and performance of this Agreement, the
     Indenture and the Senior Notes and any other agreement or instrument
     entered into or issued or to be entered into or issued by the Company in
     connection with the transactions contemplated hereby or thereby and the
     consummation of the transactions contemplated herein or therein
     (collectively, the "Transactions") and compliance by the Company with its
     obligations hereunder and thereunder do not and will not, whether with or
     without the giving of notice or lapse of time or both, conflict with or
     constitute a breach of, or default under or result in the creation or
     imposition of any lien, charge or encumbrance upon any property or assets
     of the Company or any subsidiary under any contract, indenture, mortgage,
     deed of trust, loan or credit agreement, note, lease or any other agreement
     or instrument, to which the Company or any subsidiary is a party or by
     which it or any of them may be bound, or to which any of the property or
     assets of the Company or any subsidiary is subject (except for such
     conflicts, breaches or defaults or liens, charges or encumbrances that
     would not have a Material Adverse Effect), nor will such action result in
     any violation of the provisions of the charter or bylaws of the Company or
     any subsidiary, or any applicable law, statute, rule, regulation, judgment,
     order, writ or decree of any government, government instrumentality or
     court, domestic or foreign, having jurisdiction over the Company or any
     subsidiary or any of their respective properties, assets or operations, and
     the Company has full power and authority to perform under this Agreement.

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

          Section 4. Officers' Certificates.

          Any certificate signed by any officer of the Company or any of its
subsidiaries and delivered to the Remarketing Agent or to counsel for the
Remarketing Agent in connection with the Remarketing shall be deemed a
representation and warranty by the Company to the Remarketing Agent as to the
matters covered thereby on the date of such certificate.

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                                                                              10

          Section 5. Fees and Expenses.

     (a) For the performance of its services as Remarketing Agent hereunder, the
Remarketing Agent shall retain from the proceeds of the Remarketing a
Remarketing Fee in accordance with Section 2(e)(ii)(A).

     (b) The Company agrees to pay:

          (1) the costs incident to the preparation and printing of the
     Registration Statement, Prospectus and any Remarketing Materials and any
     amendments or supplements thereto, including all related registration and
     filing fees;

          (2) the costs of distributing the Registration Statement, Prospectus
     and any Remarketing Materials and any amendments or supplements thereto;

          (3) The fees and expenses of qualifying the Remarketing Senior Notes
     under the securities laws of the several jurisdictions as provided in
     Section 6(f) and of preparing, printing and distributing a Blue Sky
     Memorandum (including related fees and expenses of counsel to the
     Remarketing Agent);

          (4) all other costs and expenses incident to the performance of the
     obligations of the Company hereunder, including the fees and expenses of
     the Company's counsel; and

          (5) the reasonable fees and expenses of outside counsel to the
     Remarketing Agent in connection with their duties hereunder.

          Section 6. Further Agreements of the Company.

          The Company covenants and agrees as follows:

          (a) (1) To prepare any registration statement or prospectus, if
     required, in connection with the Remarketing, in a form approved by the
     Remarketing Agent and to file any such prospectus under the Securities Act
     within the period required by the Rules and Regulations;

               (2) to advise the Remarketing Agent, promptly after it receives
     notice thereof, of the time when any amendment to the Registration
     Statement has been filed or becomes effective or any supplement to the
     Prospectus or any amended Prospectus has been filed, in each such case
     excluding documents filed under the Exchange Act incorporated by reference,
     and to furnish the Remarketing Agent with copies of such notice;

               (3) to file promptly all reports and any definitive proxy or
     information statements required to be filed by the Company with the
     Commission under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act
     subsequent to the date of the Prospectus and for so long as the delivery of
     a prospectus is required in connection with the offering or sale of the
     Remarketing Senior Notes;

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                                                                              11

               (4) to advise the Remarketing Agent, promptly after it receives
     notice thereof, of the issuance by the Commission of any stop order or of
     any order preventing or suspending the use of the Prospectus, of the
     suspension of the qualification of any of the Remarketing Senior Notes for
     offering or sale in any jurisdiction, of the initiation or threatening of
     any proceeding for any such purpose, or of any request by the Commission
     for the amending or supplementing of the Registration Statement or the
     Prospectus or for additional information; and, in the event of the issuance
     of any stop order or of any order preventing or suspending the use of any
     Prospectus or suspending any such qualification, to use promptly its best
     efforts to obtain its withdrawal.

          (b) To deliver promptly to the Remarketing Agent in New York City such
     number of the following documents as the Remarketing Agent shall request:
     (i) conformed copies of the Registration Statement as originally filed with
     the Commission and each amendment thereto (in each case excluding exhibits
     other than this Agreement and the Indenture), (ii) the Prospectus and any
     amended or supplemented Prospectus, (iii) any document incorporated by
     reference in the Prospectus (excluding exhibits thereto) and (iv) any
     Remarketing Materials; and, if the delivery of a prospectus is required at
     any time in connection with the Remarketing and if at such time any event
     shall have occurred as a result of which the Prospectus as then amended or
     supplemented would include any untrue statement of a material fact or omit
     to state any material fact necessary in order to make the statements
     therein, in the light of the circumstances under which they were made when
     such Prospectus is delivered, not misleading, or if for any other reason in
     the opinion of counsel to the Company or the Remarketing Agent it shall be
     necessary during such same period to amend or supplement the Registration
     Statement or Prospectus or to file under the Exchange Act any document
     incorporated by reference in the Prospectus in order to comply with the
     Securities Act or the Exchange Act, to notify the Remarketing Agent and to
     file such document and to prepare and furnish without charge to the
     Remarketing Agent and to any dealer in Senior Notes as many copies as the
     Remarketing Agent may from time to time request of an amended or
     supplemented Prospectus which will correct such statement or omission or
     effect such compliance.

          (c) To file promptly with the Commission any amendment to the
     Registration Statement or the Prospectus or any supplement to the
     Prospectus that may, in the judgment of the Company or the Remarketing
     Agent, be required by the Securities Act or requested by the Commission.

          (d) Before filing with the Commission (i) any amendment to the
     Registration Statement or supplement to the Prospectus (excluding documents
     filed under the Exchange Act incorporated by reference) or (ii) any
     Prospectus under Rule 424 of the Rules and Regulations, to furnish a copy
     thereof to the Remarketing Agent and counsel to the Remarketing Agent; and
     to afford them a reasonable opportunity to comment on any such amendment or
     supplement.

          (e) As soon as practicable after the Effective Date of the
     Registration Statement to make "generally available to the Company's
     security holders" and to deliver to the Remarketing Agent an "earnings
     statement" of the Company and its subsidiaries (which need not be audited)
     in reasonable detail, covering a period of at least 12 months

<PAGE>

                                                                              12

     beginning within three months after the Effective Date of the Registration
     Statement, which earnings statement shall satisfy the requirements of
     Section 11(a) of the Securities Act. The terms "generally available to its
     security holders" and "earnings statement" shall have the meanings set
     forth in Rule 158 of the Rules and Regulations.

          (f) Promptly from time to time to take such action as the Remarketing
     Agent may reasonably request to qualify any of the Remarketing Senior Notes
     for offer and sale under the securities or "blue sky" laws of such
     jurisdictions as the Remarketing Agent may request and to comply with such
     laws so as to permit the continuance of sales and dealings therein in such
     jurisdictions for as long as may be necessary to complete the distribution
     of the Senior Notes; provided 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 in which it is
     not so qualified or to submit to any requirements which it deems unduly
     burdensome.

          Section 7. Conditions to the Remarketing Agent's Obligations.

          The obligations of the Remarketing Agent hereunder are subject to (i)
the accuracy, on and as of the date when made, of the representations and
warranties of the Company contained herein or in any Certificates of any officer
of the Company or any subsidiary of the Company delivered pursuant hereto, (ii)
the performance by the Company of its obligations hereunder and (iii) each of
the following additional terms and conditions:

          (a) The Prospectus shall have been filed with the Commission under
     Section 6(a) hereof; no stop order suspending the effectiveness of the
     Registration Statement or any part thereof or suspending the qualification
     of the Indenture, shall have been issued and no proceeding for that purpose
     shall have been initiated or threatened by the Commission; and any request
     of the Commission for inclusion of additional information in the
     Registration Statement or the Prospectus or otherwise shall have been
     complied with.

          (b) The Remarketing Agent shall not have discovered and disclosed to
     the Company on or before the Remarketing Date that the Registration
     Statement, the Prospectus or the Remarketing Materials or any amendment or
     supplement thereto contains any untrue statement of a fact which, in the
     opinion of counsel to the Remarketing Agent, is material or omits to state
     any fact which, in the opinion of such counsel, is material and is required
     to be stated therein or is necessary to make the statements therein not
     misleading and the Company shall not have filed an amendment or supplement
     to the Registration Statement or otherwise acted to correct the matter so
     disclosed.

          (c) Counsel to the Company shall have furnished to the Remarketing
     Agent its written opinion, addressed to the Remarketing Agent and dated the
     Initial Remarketing Date and, if applicable, any Subsequent Remarketing
     Date and the Final Remarketing Date, in form and substance satisfactory to
     the Remarketing Agent, to the effect that:

<PAGE>

                                                                              13

               (i) No filing with, or authorization, approval, consent, license,
          order, registration, qualification or decree of, any court or
          governmental authority or agency, domestic or foreign (other than
          those required under the Public Utility Holding Company Act of 1935,
          as amended, the Securities Act and the Rules and Regulations, which
          have been obtained, or as may be required under the securities or blue
          sky laws of the various states) is necessary or required in connection
          with the due authorization, execution, delivery or performance of the
          Indenture, the Senior Notes and this Agreement by the Company or for
          the Remarketing of the Senior Notes. An appropriate order of the
          Commission with respect to the sale of the Corporate Units, of which
          the Senior Notes are a part, under the Public Utility Holding Company
          Act of 1935, as amended (if required), has been issued, and such order
          remains in effect at this date.

               (ii) The Indenture has been duly authorized, executed and
          delivered by, has been duly qualified under the Trust Indenture Act
          and constitutes a valid and binding obligation of, the Company,
          enforceable against the Company in accordance with its terms, subject
          to the effects of bankruptcy, insolvency, fraudulent conveyance,
          reorganization, moratorium and other similar laws relating to or
          affecting creditors' rights generally, general equitable principles
          (whether considered in a proceeding in equity or at law) and an
          implied covenant of good faith and fair dealing.

               (iii) The Senior Notes have been duly authorized, executed,
          issued and delivered by the Company and constitute valid and binding
          obligations of the Company entitled to the benefits of the Indenture,
          enforceable in accordance with their terms, subject to the effects of
          bankruptcy, insolvency, fraudulent conveyance, reorganization,
          moratorium and other similar laws relating to or affecting creditors'
          rights generally, general equitable principles (whether considered in
          a proceeding in equity or at law) and an implied covenant of good
          faith and fair dealing.

               (iv) The Remarketing Senior Notes and the Remarketing Agreement,
          when the Remarketing Senior Notes are remarketed under this Agreement,
          will conform to the descriptions thereof contained in the Prospectus
          and in any Remarketing Materials, and the Indenture is in
          substantially the form filed as an exhibit to the Registration
          Statement.

               (v) The Registration Statement was declared effective under the
          Securities Act, and the Indenture was qualified under the Trust
          Indenture Act, as of the date and time specified in such opinion, the
          Prospectus was filed with the Commission under the subparagraph of
          Rule 424(b) of the Rules and Regulations specified in such opinion on
          the date specified therein and, to the knowledge of such counsel, no
          stop order suspending the effectiveness of the Registration Statement
          has been issued and no proceeding for that purpose is pending or
          threatened by the Commission.

<PAGE>

                                                                              14

               (vi) The Registration Statement and the Prospectus appear on
          their face to be appropriately responsive in all material respects to
          the requirements of the Securities Act and the Rules and Regulations
          (except that such counsel need express no comment or belief with
          respect to the financial statements and schedules and other financial
          or statistical information contained in the Registration Statement or
          Prospectus).

               (vii) The statements contained in the Prospectus under the
          captions "Description of Debt Securities," "Additional Terms of Senior
          Debt Securities," and "Description of the Senior Notes," insofar as
          they purport to constitute summaries of certain terms of documents
          referred to therein, constitute accurate summaries of the terms of
          such documents in all material respects.

               (viii) Based upon current law and the assumptions stated or
          referred to therein, the statements relating to the Remarketing Senior
          Notes set forth in the Prospectus or in the Remarketing Materials
          under the caption "United States Federal Income Tax Consequences,"
          insofar as they purport to constitute summaries of matters of United
          States federal tax laws and regulations or legal conclusions with
          respect thereto, constitute accurate summaries of the matters
          described therein in all material respects.

     In rendering such opinion, such counsel may state that its opinion is
     limited to matters governed by the Federal laws of the United States of
     America and the laws of the Commonwealth of Virginia and the State of New
     York. Such counsel shall also advise the Remarketing Agent that although
     such counsel is not passing upon and assumes no responsibility or liability
     for the accuracy, completeness or fairness of the statements contained in
     the documents incorporated by reference in the Prospectus or any further
     amendment or supplement thereto made by the Company before such Remarketing
     Date, they have no reason to believe that any of such documents (other than
     the financial statements and related schedules therein, as to which such
     counsel need express no opinion), when such documents became effective or
     were filed with the Commission, as the case may be, contained, in the case
     of a registration statement which became effective under the Securities
     Act, an untrue statement of a material fact or omitted to state a material
     fact required to be stated therein necessary to make the statements therein
     not misleading, or, in the case of other documents which were filed under
     the Securities Act or the Exchange Act with the Commission, an untrue
     statement of a material fact or omitted to state a material fact necessary
     in order to make the statements therein, in light of the circumstances
     under which they were made when such documents were so filed, not
     misleading. Such counsel shall also advise the Remarketing Agent that
     although such counsel is not passing upon and, except as set forth in
     clauses (vii) and (viii) above, assumes no responsibility or liability for
     the accuracy, completeness or fairness of the statements contained in the
     Registration Statement, the Prospectus and the Remarketing Materials and
     any further amendments and supplements thereto made by the Company before
     such date, such counsel has no reason to believe that, as of its effective
     date, the Registration Statement or any further amendment thereto made by
     the Company before such date (other than the financial statements and
     related schedules therein, as to which such counsel need express no
     opinion) contained an untrue statement of a material fact or

<PAGE>

                                                                              15

     omitted to state a material fact required to be stated therein or necessary
     to make the statements therein not misleading or that, as of its date, the
     Prospectus and the Remarketing Materials or any further amendment or
     supplement thereto made by the Company before such Remarketing Date (other
     than the financial statements and related schedules therein, as to which
     such counsel need express no opinion) contained an untrue statement of a
     material fact or omitted to state a material fact necessary to make the
     statements therein, in light of the circumstances under which they were
     made, not misleading or that, as of the Commencement Date, the Remarketing
     Date and the Purchase Contract Settlement Date, either the Registration
     Statement, the Prospectus or the Remarketing Materials or any further
     amendment or supplement thereto made by the Company before such Remarketing
     Date (other than the financial statements and related schedules therein, as
     to which such counsel need express no opinion) contains an untrue statement
     of a material fact or omits to state a material fact necessary to make the
     statements therein, in light of the circumstances under which they were
     made, not misleading. Such counsel may state that its opinion is given on
     the basis that any statement contained in a document incorporated by
     reference in the Prospectus or any further amendment or supplement thereto
     shall be deemed not to be contained in the Registration Statement or
     Prospectus if the statement has been modified or superseded by any
     statement in a subsequently filed document incorporated by reference in the
     Prospectus or any further amendment or supplement thereto or in the
     Registration Statement or Prospectus.

          (d) The General Counsel of the Company shall have furnished to the
     Remarketing Agent a written opinion, addressed to the Remarketing Agent and
     dated the Initial Remarketing Date and, if applicable, any Subsequent
     Remarketing Date and the Final Remarketing Date, in form and substance
     satisfactory to the Remarketing Agent, to the effect that:

               (i) The Company has been duly incorporated and is validly
          existing as a corporation in good standing under the laws of the
          Commonwealth of Virginia and has the corporate power and authority to
          own, lease and operate its properties and to conduct its business as
          described in Prospectus and in any Remarketing Materials and to enter
          into and perform its obligations under this Agreement and the
          Indenture. The Company is duly qualified as a foreign corporation to
          transact business and is in good standing in each other jurisdiction
          in which such qualification is required, whether by reason of the
          ownership or leasing of property or the conduct of business, except
          where the failure to so qualify or be in good standing would not
          result in a Material Adverse Effect.

               (ii) Each Significant Subsidiary of the Company has been duly
          organized and is validly existing in good standing under the laws of
          the jurisdiction of its organization, has the power and authority to
          own, lease and operate its properties and to conduct its business as
          described in the Prospectus and in any Remarketing Materials and is
          duly qualified to transact business and is in good standing in each
          jurisdiction in which such qualification is required, whether by
          reason of the ownership or leasing of property or the conduct of

<PAGE>

                                                                              16

          business, except where the failure to so qualify or be in good
          standing would not result in a Material Adverse Effect.

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

               (iv) There are no actions, suits or proceedings pending or, to
          the best of such counsel's knowledge, threatened, to which the Company
          or any of its subsidiaries is a party or to which any of the
          properties of the Company or any of its subsidiaries is subject, other
          than (A) as described in the Prospectus or in any Remarketing
          Materials and (B) actions, suits or proceedings which such counsel
          believes are not likely to have a material adverse effect on the power
          or ability of the Company to perform its obligations under this
          Agreement or to consummate the Transactions.

          (e) On the Initial Remarketing Date and, if applicable, any Subsequent
     Remarketing Date and the Final Remarketing Date, the Company shall have
     furnished to the Remarketing Agent a letter addressed to the Remarketing
     Agent and dated such date, in form and substance satisfactory to the
     Remarketing Agent, of the Company's independent public accountants,
     containing statements and information of the type ordinarily included in
     accountants' "comfort letters" with respect to certain financial
     information contained in the Prospectus and in the Remarketing Materials.

          (f) The Company shall have furnished to the Remarketing Agent a
     certificate, dated the Initial Remarketing Date and, if applicable, any
     Subsequent Remarketing Date and the Final Remarketing Date, of its
     President or any Vice President, stating that:

               (i) the representations, warranties and agreements of the Company
          contained in this Agreement are true and correct as of the Remarketing
          Date, and the Company performed all obligations and satisfied all
          conditions required of it under this Agreement; and

               (ii) no stop order suspending the effectiveness of the
          Registration Statement is in effect and no proceedings for such
          purpose are pending before, or to such officer's knowledge, threatened
          by the Commission on the date hereof.

          (g) Subsequent to fifteen Business Days before the Remarketing Date
     and before the Remarketing on the Remarketing Date, except as reflected in,
     or contemplated by, the Registration Statement, the Prospectus and the
     Remarketing Materials, there shall not have occurred:

               (i) any change in the common stock or long-term debt of the
          Company (other than a decrease in the aggregate principal amount of
          such debt outstanding);

               (ii) any material adverse change in the general affairs,
          financial condition or earnings of the Company and its subsidiaries
          taken as a whole; or

<PAGE>

                                                                              17

               (iii) any material transaction entered into by the Company or a
          Significant Subsidiary other than a transaction in the ordinary course
          of business,

     the effect of which, in any such case described in clause (i), (ii) or
     (iii), is, in the reasonable judgment of the Remarketing Agent, so material
     and so adverse as to make it impracticable to proceed with the Remarketing
     on the terms and in the manner contemplated in the Prospectus, the
     Remarketing Materials and this Agreement.

          (h) Subsequent to fifteen Business Days before the Remarketing Date
     and before the Remarketing on the Remarketing Date, there shall not have
     occurred any of the following:

               (i) a downgrading in the rating accorded the Company's senior
          unsecured notes, or securities that are pari passu to the Company's
          senior unsecured notes, by any "nationally recognized statistical
          rating organization" (as that term is defined by the Commission for
          purposes of Rule 436(g)(2) under the Securities Act) or any public
          announcement by any such organization that it has under surveillance
          or review, with possible negative implications, its rating of such
          securities;

               (ii) any general suspension of trading in securities on the New
          York Stock Exchange or any limitation on prices for such trading or
          any restriction on the distribution of securities established by the
          New York Stock Exchange or by the Commission or by any federal or
          state agency or by the decision of any court;

               (iii) a suspension of trading of any securities of the Company on
          the New York Stock Exchange;

               (iv) a banking moratorium shall have been declared by federal or
          New York state authorities; or

               (v) any outbreak or escalation of major hostilities in which the
          United States is involved, any declaration of war by the United States
          Congress or any other substantial national or international calamity
          or crisis resulting in the declaration of a national emergency, or any
          material adverse change in the financial markets,

     the effect of which outbreak, escalation, declaration, calamity, crisis or
     material adverse change, in the reasonable judgment of the Remarketing
     Agent, makes it impracticable to proceed with the Remarketing on the terms
     and in the manner contemplated in the Prospectus, the Remarketing Materials
     and this Agreement.

          (i) Without the prior written consent of the Remarketing Agent, the
     Indenture shall not have been amended in any manner, or otherwise contain
     any provision not contained therein as of the date hereof that, in the
     reasonable judgment of the Remarketing Agent, materially changes the nature
     of the Remarketing Senior Notes or the Remarketing Procedures. The
     foregoing shall not require notice to, or the obtaining

<PAGE>

                                                                              18

     of consent from, the Remarketing Agent with respect to any amendment or
     change in the Indenture that does not materially change the nature of the
     Remarketing Senior Notes or the Remarketing Procedures.

          (j) All corporate proceedings and other legal matters incident to the
     authorization, form and validity of this Agreement, the Indenture, the
     Remarketing Senior Notes, the Prospectus, the Registration Statement, the
     Remarketing Materials and all other legal matters relating to this
     Agreement and the transactions contemplated hereby shall be reasonably
     satisfactory in all material respects to counsel to the Remarketing Agent,
     and the Company shall have furnished to such counsel all documents and
     information that they may reasonably request to enable them to pass upon
     such matters.

          All opinions, letters, evidence and certificates mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory
to counsel for the Remarketing Agent.

          Section 8. Indemnification.

     (a) The Company agrees to indemnify and hold harmless the Remarketing Agent
and each person who controls the Remarketing Agent within the meaning of Section
15 of the Securities Act or Section 20(a) of the Exchange Act, from and against
any and all losses, claims, damages or liabilities, joint or several, or any
actions in respect thereof, to which the Remarketing Agent or any such
controlling person may become subject, under the Securities Act, the Exchange
Act or any other statute or common law and to reimburse the Remarketing Agent
and any such controlling person for any legal or other expenses (including, to
the extent hereinafter provided, reasonable outside counsel fees) incurred by
the Remarketing Agent or any such controlling person in connection with
investigation or defending any such losses, claims, damages or liabilities or in
connection with defending any actions, insofar as such losses, claims, damages,
liabilities, expenses or actions arise out of, or are based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in (A) the
Registration Statement or the Prospectus or in any amendment or supplement
thereto (if any amendments or supplements thereto shall have been furnished) (B)
any Preliminary Prospectus (if and when used before the Effective Date) or (C)
any Remarketing Materials, or (ii) the omission or alleged omission to state
therein any material fact required to be stated therein or necessary to make the
statements therein not misleading; provided, however, that the foregoing
agreement, insofar as it relates to any Preliminary Prospectus, shall not inure
to the benefit of the Remarketing Agent (or to the benefit of any such
controlling person) on account of any losses, claims, damages, liabilities or
actions arising out of the sale of the Remarketing Senior Notes to any person by
the Remarketing Agent if it shall be established that a copy of the Prospectus,
excluding any documents incorporated by reference (as supplemented or amended,
if the Company shall have made any supplements or amendments which have been
furnished to the Remarketing Agent), shall not have been sent or given by or on
behalf of the Remarketing Agent to such person at or before the written
confirmation of the sale to such person in any case where such delivery is
required by the Securities Act and the Company satisfied its obligations under
Section 6(b), if the misstatement or omission leading to such loss, claim,
damage, liability or action was corrected in the Prospectus (excluding any
documents incorporated by reference) as amended or supplemented, and such
correction would have cured the defect giving rise to such loss, claim, damage,
liability or action; and provided

<PAGE>

                                                                              19

further that the indemnity agreement of the Company contained in this Section
8(a) shall not apply to any such losses, claims, damages, liabilities, expenses
or actions arising out of, or based upon, any such untrue statement or alleged
untrue statement or omission or alleged omission if such statement or omission
was made in reliance upon information furnished herein or otherwise in writing
to the Company by or on behalf of the Remarketing Agent for use therein. The
indemnity agreement of the Company contained in this Section 8(a) and the
representations and warranties of the Company contained in or made under
Sections 3 and 4 shall remain operative and in full force and effect, regardless
of any investigation made by or on behalf of the Remarketing Agent or any such
controlling person, and shall survive the Remarketing of the Remarketing Senior
Notes.

     (b) The Remarketing Agent agrees to indemnify and hold harmless the
Company, its officers and directors and each person who controls the Company
within the meaning of Section 15 of the Securities Act or Section 20(a) of the
Exchange Act, from and against any and all losses, claims, damages or
liabilities, joint or several, or any actions in respect thereof, to which they
or any of them may become subject, under the Securities Act, the Exchange Act or
any other statute or common law and to reimburse each of them for any legal or
other expenses (including, to the extent hereinafter provided, reasonable
outside counsel fees) incurred by them in connection with investigation or
defending any such losses, claims, damages or liabilities or in connection with
defending any actions, insofar as such losses, claims, damages, liabilities,
expenses or actions arise out of, or are based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in (A) the Registration
Statement or the Prospectus or in any amendment or supplement thereto (if any
amendments or supplements thereto shall have been furnished) (B) any Preliminary
Prospectus (if and when used before the Effective Date) or (C) any Remarketing
Materials, or (ii) the omission or alleged omission to state therein any
material fact required to be stated therein or necessary to make the statements
therein not misleading, if such statement or omission was made in reliance upon
information furnished herein or in writing to the Company by or on behalf of the
Remarketing Agent for use therein. The indemnity agreement of the Remarketing
Agent contained in this Section 8(b) shall remain operative and in full force
and effect, regardless of any investigation made by or on behalf of the Company
or any such controlling person, and shall survive the Remarketing of the
Remarketing Senior Notes.

     (c) Upon the receipt of notice of the commencement of any action against
the Company or any of its officers or directors or any person controlling the
Company or the Remarketing Agent or any person controlling the Remarketing Agent
as aforesaid, in respect of which indemnity may be sought on account of any
indemnity agreement contained herein, it will promptly give written notice of
the commencement thereof to the party or parties against whom indemnity shall be
sought hereunder, but the omission so to notify such indemnifying party or
parties of any such action shall not relieve such indemnifying party or parties
from any liability which it or they may have to the indemnified party otherwise
than on account of such indemnity agreement. In case such notice of any such
action shall be so given, such indemnifying party shall be entitled to
participate at its own expense in the defense or, if it so elects, to assume (in
conjunction with any other indemnifying parties) the defense of such action, in
which event such defense shall be conducted by counsel chosen by such
indemnifying party (or parties) and satisfactory to the indemnified party or
parties who shall be defendant or defendants in such action, and such defendant
or defendants shall bear the fees and expenses of any additional

<PAGE>

                                                                              20

outside counsel retained by them; provided that, if the defendants (including
impleaded parties) in any such action include both the indemnified party and the
indemnifying party (or parties) and the indemnified party shall have reasonably
concluded that there may be legal defenses available to it and/or other
indemnified parties which are different from or additional to those available to
the indemnifying party (or parties), the indemnified party shall have the right
to select separate counsel to assert such legal defenses and to participate
otherwise in the defense of such action on behalf of such indemnified party. The
indemnifying party shall bear the reasonable fees and expenses of outside
counsel retained by the indemnified party if (i) the indemnified party shall
have retained such counsel in connection with the assertion of legal defenses in
accordance with the proviso to the preceding sentence (it being understood,
however, that the indemnifying party shall not be liable for the expenses of
more than one separate counsel (in addition to one local counsel), representing
the indemnified parties under Section 8(a) or 8(b), as the case may be, who are
parties to such action), (ii) the indemnifying party shall have elected not to
assume the defense of such action, (iii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of the commencement of
the action, or (iv) the indemnifying party has authorized the employment of
counsel for the indemnified party at the expense of the indemnifying party.
Notwithstanding the foregoing sentence, an indemnifying party shall not be
liable for any settlement of any proceeding effected without its written consent
(such consent not to be unreasonably withheld), but if settled with such consent
or if there be a final judgment for the plaintiff, the indemnifying party agrees
to indemnify the indemnified party from and against any loss or liability by
reason of such settlement or judgment. No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement of any
pending or threatened proceeding in respect of which indemnification may be
sought hereunder (whether or not the indemnified party is an actual or potential
party to such a proceeding), unless such settlement (i) includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding and (ii) does not include a
statement as to or an admission of fault, culpability or failure to act by or on
behalf of any indemnified party.

          Section 9. Contribution.

     If the indemnification provided for in Section 8 hereof is unavailable to
or insufficient to hold harmless an indemnified party in respect of any losses,
claims, damages or liabilities, or actions in respect thereof, referred to
therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or
liabilities, or actions in respect thereof, in such proportion as is appropriate
to reflect the relative fault of the Company on the one hand and the Remarketing
Agent on the other in connection with the statements or omissions which resulted
in such losses, claims, damages or liabilities, or actions in respect thereof,
as well as any other relevant equitable considerations, including relative
benefit. The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact required to be stated
therein or necessary in order to make the statements therein not misleading
relates to information supplied by the Company on the one hand or the
Remarketing Agent on the other hand and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The Company and the Remarketing Agent agree that it would not be just
and equitable if contribution under this Section 9 were to be determined by pro
rata allocation or by any other method of allocation

<PAGE>

                                                                              21

which does not take into account the equitable considerations referred to above
in this Section 9. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages or liabilities, or actions in respect
thereof, referred to above in this Section 9 shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such claim or action. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. The remedies provided for in
this Section 9 are not exclusive and shall not limit any rights or remedies
which may otherwise be available to any indemnified party at law or in equity.

          Section 10. Resignation and Removal of the Remarketing Agent.

          The Remarketing Agent may resign and be discharged from its duties and
obligations hereunder by giving 60 days' prior written notice to the Company,
the Depositary, the Indenture Trustee and the Purchase Contract Agent. The
Company may, in its discretion, remove the Remarketing Agent by giving 60 days'
prior written notice (or seven days' prior written notice on or after the
Initial Remarketing Date if the Initial Remarketing is not successful) to the
removed Remarketing Agent, the Depositary, the Indenture Trustee and the
Purchase Contract Agent.

     Notwithstanding any other provision in this Section 10, no such resignation
nor any such removal shall become effective until the Company shall have
appointed at least one nationally recognized broker-dealer as successor
Remarketing Agent and such successor Remarketing Agent shall have entered into a
remarketing agreement with the Company, in which it shall have agreed to conduct
the Remarketing in accordance with the Remarketing Procedures. The provisions of
Sections 5, 8 and 9 shall survive the resignation or removal of any Remarketing
Agent under this Agreement.

          Section 11. Dealing in the Remarketing Senior Notes.

          The Remarketing Agent, when acting as a Remarketing Agent or in its
individual or any other capacity, may, to the extent permitted by law, buy,
sell, hold and deal in any of the Remarketing Senior Notes. The Remarketing
Agent may exercise any vote or join in any action which any beneficial owner of
Remarketing Senior Notes may be entitled to exercise or take under the Indenture
with like effect as if it did not act in any capacity hereunder. The Remarketing
Agent, in its individual capacity, either as principal or agent, may also engage
in or have an interest in any financial or other transaction with the Company as
freely as if it did not act in any capacity hereunder.

          Section 12. Remarketing Agent's Performance; Duty of Care.

          The duties and obligations of the Remarketing Agent shall be
determined solely by the express provisions of this Agreement, the Indenture and
the Senior Notes. No implied covenants or obligations of or against the
Remarketing Agent shall be read into this Agreement, the Indenture or the Senior
Notes. In the absence of bad faith on the part of the Remarketing Agent, the
Remarketing Agent may conclusively rely upon any document furnished to it, which
purports to conform to the requirements of this Agreement, the Indenture or the
Senior Notes as

<PAGE>

                                                                              22

to the truth of the statements expressed in any of such documents. The
Remarketing Agent shall be protected in acting upon any document or
communication reasonably believed by it to have been signed, presented or made
by the proper party or parties. The Remarketing Agent, acting under this
Agreement, shall incur no liability to the Company or to any holder of
Remarketing Senior Notes in its individual capacity or as Remarketing Agent for
any action or failure to act, on its part in connection with a Remarketing or
otherwise, except if such liability is judicially determined to have resulted
from the gross negligence or willful misconduct on its part.

          Section 13. Termination.

          This Agreement shall terminate as to the Remarketing Agent on the
effective date of the resignation or removal of the Remarketing Agent under
Section 10. In addition, the obligations of the Remarketing Agent hereunder may
be terminated by it by notice given to the Company before 10:00 a.m. (New York
City time) on the Remarketing Date if, before that time, any of the events
described in Sections 7(g), (h) and (i) shall have occurred.

          Section 14. Notices.

          All statements, requests, notices and agreements hereunder shall be in
writing, and:

          (a) if to the Remarketing Agent, shall be delivered or sent by mail,
     telex or facsimile transmission to

     ---------------------------------------------------------------------------
                                                                               ;
     --------------------------------------------------------------------------

          (b) if to the Company shall be delivered or sent by mail, telex or
     facsimile transmission to the address of the Company set forth in the
     Prospectus, Attention: Treasurer (Fax: (804) 819-2211).

Any such statements, requests, notices or agreements shall take effect at the
time of receipt thereof.

          Section 15. Persons Entitled to Benefit of Agreement.

          This Agreement shall inure to the benefit of and be binding upon the
Remarketing Agent, the Company and their respective successors. This Agreement
and the terms and provisions hereof are for the sole benefit of only those
persons, except that (x) the representations, warranties, indemnity and
contribution agreements and other agreements of the Company contained in this
Agreement shall also be deemed to be for the benefit of the officers and
employees of the Remarketing Agent and the person or persons, if any, who
control the Remarketing Agent within the meaning of Section 15 of the Securities
Act and (y) the indemnity and contribution agreements of the Remarketing Agent
contained in Sections 8(b) and 9 of this Agreement shall be deemed to be for the
benefit of directors, officers and employees of the Company and any person
controlling the Company within the meaning of Section 15 of the Securities Act.
Nothing contained in this Agreement is intended or shall be construed to give
any person, other than the persons referred to herein, any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision
contained herein.

<PAGE>

                                                                              23

          Section 16. Survival.

          The respective indemnities, representations, warranties and agreements
of the Company and the Remarketing Agent contained in this Agreement or made by
or on behalf of them, respectively, under this Agreement, shall survive the
Remarketing and shall remain in full force and effect, regardless of any
investigation made by or on behalf of any of them or any person controlling any
of them.

          Section 17. Governing Law.

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

          Section 18. Counterparts.

          This Agreement may be executed in one or more counterparts and, if
executed in more than one counterpart, the executed counterparts shall each be
deemed to be an original but all such counterparts shall together constitute one
and the same instrument.

          Section 19. Headings.

          The headings herein are inserted for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of,
this Agreement.

<PAGE>

          If the foregoing correctly sets forth the agreement between the
Company and the Remarketing Agent, please indicate your acceptance in the space
provided for that purpose below.

                                                Very truly yours,

                                                DOMINION RESOURCES, INC.

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

Accepted:

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

By:
   -----------------------------------SigmaTel 1995 Stock Option/Stock Issuance Plan, as amended to date

 Exhibit 10.1 
 SIGMATEL, INC. 
 1995 STOCK OPTION/STOCK ISSUANCE PLAN 
 (Restated to Include All Amendments Adopted Through May 5, 2003) 
  
 ARTICLE I 
 GENERAL PROVISIONS

 1.    PURPOSE 
  
 This 1995 Stock Option/Stock Issuance Plan (this “Plan”) is intended to promote the interests of SigmaTel, Inc., a Texas corporation (the
“Corporation”), by providing individuals who render valuable services to the Corporation (or any Parent or Subsidiary) with the opportunity to acquire ownership interests in the Corporation so as to encourage them to continue to render
services to the Corporation (or any Parent or Subsidiary). 
  
 2.    STRUCTURE OF THE PLAN; TERMINOLOGY 
  
 This Plan has two separate components: the Option Grant Program set forth in Article II (the “Option Grant Program”) and the Stock Issuance Program set forth in Article III (the “Stock Issuance
Program”). For the purposes of this Plan, any capitalized term shall have the meaning assigned under Article IV, Section 8 hereof. 
  
 3.    ADMINISTRATION OF THE PLAN 
  
 A.    This Plan shall be administered either by the Board or a compensation committee of the Board of two (2) or more Board members
appointed by the Board to which the Board has delegated administrative functions under the Plan (the “Plan Administrator”). Members of any committee to which the Board has delegated any administrative functions shall serve for such terms
as the Board shall determine and subject to the Board’s right of removal. All delegations of authority to any committee shall be and remain revocable by the Board. 
  
 B.    The Plan Administrator shall have full power and authority to implement, interpret and administer
the Plan, to establish all such rules and regulations as it deems appropriate, and to make such determinations under the Plan and any outstanding option grants or share issuances as it deems necessary or advisable. Decisions of the Plan
Administrator shall be final and binding on all parties who have an interest in the Plan or any outstanding option or share issuance. 
  
 4.    SELECTION OF OPTIONEES AND PARTICIPANTS 
  
 A.    The persons eligible to receive share issuances under the Stock Issuance Program and/or option
grants pursuant to the Option Grant Program are limited to Employees; non-employee members of the Board of the Corporation (or of any Parent or Subsidiary); and consultants and other independent contractors who provide valuable services to the
Corporation (or of any Parent or Subsidiary). 
  
 B.    The Plan Administrator shall have the absolute discretion and authority to determine, subject to the provisions of this Plan, the terms of any option grant or share issuance. 
  

 1 

 
In addition to any other matters over which the Plan Administrator has discretion hereunder, the Plan Administrator shall determine which, if any, eligible
individuals will be granted options in accordance with Article II of the Plan and which will be issued shares in accordance with Article III of the Plan. With respect to option grants made under the Plan, the Plan Administrator will determine the
number of shares to be covered by each such grant, the status of the granted option as either an Incentive Option or a Non-Statutory Option, the time or times at which each granted option is to become exercisable, the vesting schedule (if any)
applicable to shares issued pursuant to the granted options, and the maximum term for which the option may remain outstanding. With respect to shares issued under the Stock Issuance Program, in addition to other matters over which the Plan
Administrator has discretion hereunder, the Plan Administrator will determine the number of shares to be issued to each issuee, the vesting schedule (if any) applicable to the issued shares, and the consideration to be paid by the individual for
such shares. 
  
 C.    Common Stock issuable
under the Plan, whether under the Option Grant Program or the Stock Issuance Program, may be subject to such restrictions on transfer, repurchase right or other restrictions as may be imposed by the Plan Administrator and set forth in the documents
governing such option or issuance. 
  
 5.    STOCK SUBJECT TO THE PLAN 
  
 A.    Common Stock of the Corporation will be issued under the Plan. The maximum number of shares which may be issued over the term of the Plan shall not exceed Twenty-one Million Three Hundred Seventeen Thousand
(21,317,000) shares, subject to adjustment from time to time in accordance with the provisions of this Section 5 of Article I. 
  
 B.    Shares reserved for issuance under granted options but not in fact issued pursuant to options granted under the Plan due to the
expiration or termination of the option or the cancellation of the option in accordance with Section 2 Article II, will again become available for issuance under the Plan. Shares actually issued under the Plan, whether pursuant to the exercise of
any option under the Option Grant Program or a stock issuance pursuant to the Stock Issuance Program, which are subsequently repurchased by the Corporation will not become available for future issuance, unless such shares were originally purchased
as unvested shares pursuant to the exercise of an option to purchase unvested shares of stock. 
  
 C.    In the event any change is made to the Common Stock issuable under the Plan by reason of any stock dividend, stock split, combination of shares, exchange of shares or other change affecting
the outstanding Common Stock as a class without receipt of consideration, then appropriate adjustments shall be made to (i) the aggregate number and/or class of shares issuable under the Plan and (ii) the aggregate number and/or class of shares and
the option price per share in effect under each outstanding option in order to prevent the dilution or enlargement of benefits thereunder. The adjustments determined by the Plan Administrator shall be final, binding and conclusive. 
  
 D.    No shares under the Plan shall be issued to any
optionee or participant unless such optionee or participant first agrees to the terms of that certain Second Amended and Restated Shareholders Agreement dated August 15, 2000, entered into among the Corporation, 

  

 2 

 
its shareholders, and various investors (as amended, the “Shareholders Agreement”) with respect to transfer restrictions, and as part of the
issuance of the shares to any optionee or participant, such optionee or participant shall execute the Shareholders Agreement. All shares issued under the Plan shall bear the legend set forth in Section 10.1 of the Shareholders Agreement. 

 
 6.    AMENDMENT OF THE PLAN AND AWARDS

  
 A.    The Board shall have complete and
exclusive power and authority to amend or modify the Plan in any or all respects whatsoever. However, no such amendment or modification shall adversely affect the rights and obligations of an optionee with respect to options at the time outstanding
under the Plan, nor adversely affect the rights of any issuee with respect to Common Stock issued under the plan prior to such action unless such optionee or issuee consents to such amendment. In addition, the Board shall not, without the approval
of the Corporation’s shareholders, amend the Plan so as to (i) increase the maximum number of shares issuable under the Plan (except for adjustments required under Article I, Section 5.C), (ii) materially increase the benefits accruing to
individuals who participate in the Plan, or (iii) materially modify the eligibility requirements for participation in the Plan. 
  
 B.    Options to purchase shares of Common Stock may be granted under the Option Grant Program and shares of Common Stock may be
issued under the Stock Issuance Program, which are in excess of the number of shares then available for issuance under the Plan, provided any excess shares actually issued under the Option Grant Program or the Stock Issuance Program are held
in escrow until shareholder approval of an amendment sufficiently increasing the number of shares of common Stock available for issuance under the Plan is obtained. If such approval is not obtained within twelve (12) months after the date the
initial excess issuances are made, then (I) any unexercised options representing such excess shall terminate and cease to be exercisable and (II) the Corporation shall promptly refund to the optionees and issuees the option or purchase price paid
for any excess shares issued under the Plan and held in escrow, together with interest (at the applicable Short Term Federal Rate) for the period the shares were held in escrow, and such shares shall thereupon by automatically cancelled and cease to
be outstanding. 
  
 7.    EFFECTIVE DATE
AND TERMS OF PLAN 
  
 A.    The Plan shall
become effective when adopted by the Board. Options to purchase shares of Common Stock may be granted under the Option Grant Program and shares of Common Stock may be issued under the Stock Issuance Program from and after the effective date,
provided any shares actually issued under the Plan are held in escrow until shareholder approval of the Plan is obtained. If such approval is not obtained within twelve (12) months after the effective date, then (I) all options shall
terminate and cease to be exercisable, (II) the Corporation shall promptly refund to the optionees and issuees the option or purchase price paid for any shares issued under the Plan, together with interest (at the applicable Short Term Federal Rate)
for the period the shares were held in escrow, and such shares shall thereupon be automatically cancelled and cease to be outstanding, and (III) this Plan shall terminate in its entirety. 
  

 3 

 B.    Unless sooner terminated by reason of Section 7A of this Article I, the Plan
shall terminate upon the earlier of (i) March 31, 2005, or (ii) the date on which all shares available for issuance under the Plan have been issued pursuant to the exercise of options granted under Article II or the issuance of shares under
Article III. The termination of the Plan shall have no effect on any outstanding options under or shares issued and outstanding under the Plan, and such securities shall thereafter continue to have force and effect in accordance with the provisions
of the agreements evidencing such options and issuances. 
  
 8.    NO EMPLOYMENT OR SERVICE RIGHTS 
  
 Nothing in the Plan shall confer upon any person any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent of
Subsidiary) or of the optionee or the issuee, which rights are hereby expressly reserved by each, to terminate Service of the optionee or issuee at any time for any reason whatsoever, with or without cause or to engage in any Corporate Transaction.

  
 ARTICLE II 
 OPTION GRANT PROGRAM 
  
 1.    TERMS AND CONDITIONS OF OPTIONS 
  

Options granted pursuant to the Plan shall be authorized by action of the Plan Administrator and may, at the Plan Administrator’s discretion, be
either Incentive Options or Non-Statutory Options except that individuals who are not Employees may only be granted Non-Statutory Options. Each granted option shall be evidenced by one or more instruments in the form approved by the Plan
Administrator; provided, however, that each such instrument shall comply with the terms and conditions of Sections 1 and 3 of this Article II and each instrument evidencing an Incentive Option shall, in addition, comply with the provisions of
Section 2 of this Article II. 
  
 A.    Option Price. 
  
 (I)    The option price per share shall be fixed by the Plan Administrator. In no event, however, shall the option price per share be less than eighty-five percent (85%) of the Fair Market Value of a share of Common
Stock on the date of the option grant. 
  
 (II)    The option price per share shall become immediately due upon exercise of the option and shall, subject to the provisions of Article IV, Section 1 and the agreement evidencing such grant, be payable in cash or
check drawn to the Corporation’s order. Notwithstanding the above, should the Corporation’s outstanding Common Stock be registered under Section 12(g) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), at the
time the option is exercised, then the option price may also be paid as follows: 
  
 —     in shares of Common Stock held by the optionee for the requisite period necessary to avoid a charge to the
Corporation’s earnings for financial reporting purposes and valued at Fair Market Value; or 
  

 4 

 —    through a special sale and remittance procedure pursuant to
which the optionee provides irrevocable written instructions (I) to a designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, an amount
sufficient to cover the aggregate option price payable for the purchased shares plus all applicable Federal and State income and employment taxes required to be withheld by the Corporation by reason of such purchase and (II) to the Corporation to
deliver the certificates for the purchased shares directly to such brokerage firm in order to effect the sale transaction. 
  
 Except to the extent such sale and remittance procedure is utilized, payment of the option price must occur at the time the option is exercised.

  
 B.    Term and Exercise of
Options.    Each option granted under the Plan shall be exercisable at such time or times, during such period, and for such number of shares as shall be determined by the Plan Administrator and set forth in the stock option
agreement evidencing such option. However, no option granted under the Plan shall have a term in excess of ten (10) years from the grant date. 
  
 C.    No Assignment.    During the lifetime of the optionee, the option shall be exercisable only by the
optionee and shall not be assignable or transferable by the optionee otherwise than by will or by the laws of descent and distribution following the optionee’s death. 
  
 D.    Termination of Service.    The following provisions shall govern the
exercise period applicable to any options held by the optionee at the time of cessation of Service or death: 
  
 (I)    Should the optionee cease to remain in Service for any reason other than death or Permanent Disability, then
the period during which each outstanding option held by such optionee is to remain exercisable shall be limited to the three (3) month period following the date of such cessation of Service. 
  
 (II)    Should such Service terminate by
reason of Permanent Disability or should the optionee die while holding one or more outstanding options, then the period during which each such option is to remain exercisable shall be limited to the twelve (12) month period following the date of
the optionee’s cessation of Service or death. During the limited exercise period following the optionee’s death, the option may be exercised by the personal representative of the optionee’s estate or by the person or persons to whom
the option is transferred pursuant to the optionee’s will or in accordance with the laws of descent and distribution. 
  
 (III)    The Plan Administrator shall have full power and authority to extend (either at the time the option is
granted or at any time while the option remains outstanding) the period of time for which the option is to remain exercisable following the optionee’s cessation of Service, from the limited period otherwise applicable under subsection 1D of
this Article II, to such greater period of time as the Plan Administrator may deem appropriate under the circumstances. 
  
 (IV)    Notwithstanding the above, no option shall be exercisable after the specified expiration date of the option
term. 
  

 5 

 (V)    Each such option shall, during the applicable limited exercise
period, be exercisable only with respect to the shares for which the option was exercisable on the date of the optionee’s cessation of Service. 
  
 E.    Shareholder Rights.    An optionee shall not have rights as a shareholder with respect to any share
subject to an option until such optionee shall have exercised the option and paid the option price. 
  
 2.    INCENTIVE OPTIONS 
  
 All provisions of the Plan shall be applicable to Incentive Options granted hereunder and, in addition, the terms and conditions specified in this Section
2 shall be applicable to Incentive Options granted under the Plan. Options which are specifically designated as Non-Statutory Options when issued under the Plan shall not be subject to such terms and conditions as set forth herein.

  
 A.    Option Price.

  
 (I)    The option price
per share of the Common Stock subject to an Incentive Option shall in no event be less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the grant date. 
  
 (II)    If the individual to whom the
option is granted is a 10% Shareholder, then the option price per share shall not be less than one hundred ten percent (110%) of the Fair Market Value of the Common Stock on the date of the option grant. 
  
 B.    Dollar
Limitation.    The aggregate Fair Market Value (determined as of the date or dates of grant) of Common Stock which first becomes exercisable during any one calendar year under Incentive Options granted to any Employee under
any option plan of the Corporation (or any parent or subsidiary corporation) shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds options which become exercisable in the same calendar year, the
foregoing limitation on such options shall be applied on the basis of the order in which such options were granted. Any options in excess of such limitation shall automatically be treated as Non-Statutory Options. 
  
 C.    Term of Option for 10%
Shareholders.    No option granted to a 10% Shareholder shall have a term in excess of five (5) years from the grant date. 
  
 3.    CANCELLATION AND NEW GRANT OF OPTIONS 
  
 The Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent of the
affected optionees, the cancellation of any or all outstanding options under the Plan and the grant in substitution therefor of new options under the Plan covering the same or a different number of shares of Common Stock but having an option price
per share established at the time of such cancellation and regrant in accordance with the provisions of this Plan. 
  

 6 

 ARTICLE III 
 STOCK ISSUANCE PROGRAM 
  
 1.    STOCK ISSUANCES 
  
 Shares of Common Stock shall be issuable under the Stock Issuance Program through direct and immediate issuances without any intervening stock option grants. Each such stock issuance shall be evidenced by a Stock Issuance Agreement
(“Issuance Agreement”) in a form acceptable to the Plan Administrator, which form shall be in compliance with the provisions of the Plan. 
  
 2.    ISSUE PRICE 
  
 The purchase price per share shall be fixed by the Plan Administrator, but in no event shall it be less than eighty-five percent (85%) of the Fair Market
Value of a share of Common Stock at the time of issuance. 
  
 3.    PAYMENT OF ISSUE PRICE 
  
 Except as provided in Article IV, Section 1, shares shall be issued only in exchange for cash, a check payable to the Corporation, for services previously rendered to the Corporation (or any Parent or Subsidiary) or such other lawful
consideration as may be acceptable to the Plan Administrator. 
  
 ARTICLE IV 
 MISCELLANEOUS 
  
 1.    LOANS 
  
 A.    The Plan Administrator may assist any optionee or issuee (other than a non-employee director) in the exercise of one or more
options granted to such optionee under the Option Grant Program or the purchase of one or more shares to be issued to such issuee under the Stock Issuance Program, including the satisfaction of any Federal and State income and employment tax
obligations arising therefrom, by (i) authorizing the extension of a loan from the Corporation to such optionee or issuee, or (ii) permitting the optionee or issuee to pay the option price or purchase price for the purchased common Stock in
installments over a period of years. 
  
 B.    The terms of any loan or installment method of payment (including the interest rate and terms of repayment) shall be established by the Plan Administrator in its sole discretion. Loans or installment payments may
be authorized with or without security or collateral. However, any loan made to a consultant or other non-employee advisor must be secured by property other than the purchased shares of Common Stock. In all events the maximum credit available to
each optionee or issuee may not exceed the sum of (i) the aggregate option price or purchase price payable for the purchased shares plus (ii) any Federal and State income and employment tax liability incurred by the optionee or issuee in
connection with such exercise or purchase. 
  

 7 

 C.    The Plan Administrator may, in its absolute discretion, determine that one or
more loans extended under the financial assistance program shall be subject to forgiveness by the Corporation in whole or in part upon such terms and conditions as the Board in its discretion deems appropriate. 
  
 2.    VESTING OF SHARES AND REPURCHASE RIGHTS

  
 A.    The Plan Administrator, in its
absolute discretion, may issue fully and immediately vested shares of Common Stock, or the Plan Administrator may impose such vesting requirements as it deems appropriate with the Corporation retaining a right to repurchase any unvested shares. The
terms of the vesting schedule and of the Corporation’s repurchase rights shall be as determined by the Plan Administrator and set forth in the agreement governing such issuance. Without limitation of the foregoing, the Plan Administrator, in
its absolute discretion, may allow any option issued under the Plan to be exercised immediately, in whole or in part, even though the option may not yet be fully-vested with respect to all or a portion of the shares subject to the option. The right
of an option holder under the Plan to exercise an option to purchase unvested shares shall be conditioned upon the holder’s first executing and delivering to the Corporation an agreement, in a form acceptable to the Plan Administrator,
providing that any unvested shares purchased upon exercise are subject to the Company’s right to repurchase such unvested shares for the price per share at which they were required by the option holder. 
  
 B.    Any new, additional or different shares of stock or
other property (including money paid other than as a regular cash dividend) which the holder of unvested Common Stock may have the right to receive by reason of a stock dividend, stock split, reclassification or other change affecting the
outstanding Common Stock as a class without the Corporation’s receipt of consideration shall be issued subject to (i) the same vesting and repurchase limitations applicable to the unvested Common Stock with respect to which it was paid or
arose, and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate. 
  
 C.    No person to whom shares of Common Stock have been issued pursuant to the Plan may transfer any such shares which have not vested. Notwithstanding the above, the issuee shall have the right
to make a gift of unvested shares acquired under the Plan to his/her spouse, parents or issue or to a trust established for such spouse, parents or issue, provided the transferee of such shares delivers to the Corporation a written agreement to be
bound by all the provisions of the Plan and the Issuance or Stock Purchase Agreement executed by the issuee at the time of his/her acquisition of the gifted shares. 
  
 3.    MARKET STAND-OFF AGREEMENTS 
  
 Each person to whom any shares are issued under this Plan agrees, by his or her signature on an incentive stock option
agreement, that, during the period of duration (up to, but not exceeding, 180 days) specified by the Corporation and an underwriter of Common Stock or other securities of the Corporation, following the effective date of a registration statement of
the Corporation filed under the Securities Act of 1933, such person shall not, to the extent requested by the Corporation and such underwriter, directly or indirectly sell, offer to sell, contract to sell (including, without limitation, any short
sale), grant any option to purchase or otherwise transfer 
  

 8 

 
or dispose of (other than to donees who agree to be similarly bound) any securities of the Corporation held by such person at any time during such period
except Common Stock included in such registration. 
  
 In order to
enforce the foregoing covenant, the Corporation may impose stop-transfer instructions with respect to the shares or securities of every person subject to the foregoing restriction until the end of such period, and each person subject to the
foregoing restriction agrees that, if so requested, such person must execute an agreement in the form provided by the underwriter containing terms which are essentially consistent with the provisions of this Article IV, Section 3. 
  
 4.    RIGHT OF FIRST REFUSAL AND OTHER
RESTRICTIONS ON TRANSFER 
  
 Until such time as the
Corporation’s outstanding shares of Common Stock are first registered under Section 12(g) of the 1934 Act, the Plan Administrator may subject any shares issued pursuant to the Plan to a right of first refusal with respect to any proposed
disposition of such shares other than a transfer permitted by Section 2.C of this Article IV. Such right of first refusal shall be exercisable by the Corporation (or its assignees) in accordance with the terms and conditions specified in the
instrument governing the issuance of such shares. Furthermore, the Plan Administrator may require that persons to whom shares of Common Stock have been issued pursuant to the Plan enter into an agreement with the Corporation and/or certain of the
Corporation’s shareholders which provides for restrictions on the sale or transfer of such shares except in compliance with the terms thereof including, without limitation, rights of first refusal and co-sale rights. 
  
 5.    SECURITIES LAWS; LEGENDS 
  
 A.    No shares of Common Stock or other assets shall be
issued or delivered under this Plan unless and until the Corporation shall have determined that there has been full and adequate compliance with all applicable requirements of the Federal and State securities laws and all other applicable legal and
regulatory requirements. 
  
 B.    Shares
issued under the Plan shall bear such legends as the Plan Administrator deems necessary or appropriate, including such restrictive legends as the Plan Administrator shall require to reflect the terms of any agreement between the issuee and the
Corporation and other shareholders of the Corporation. 
  
 6.    SHAREHOLDER RIGHTS 
  
 Subject to the rights of the Corporation set forth herein or in any other agreement entered into between the Corporation and an issuee of shares under the Plan, each person to whom shares of Common Stock have been issued under the Plan
shall have all the rights of a shareholder with respect to those shares whether or not his/her interest in such shares is vested. Accordingly, the issuee shall have the right to vote such shares and to receive any cash dividends or other
distributions paid or made with respect to such shares. 
  

 9 

 7.    INTENTIONALLY DELETED 
  
 8.    DEFINITIONS 
  
 The following definitions shall be in effect under this Plan: 
  
 A.    Board shall mean the Board of Directors of
the Corporation. 
  
 B.    Code shall
mean the Internal Revenue Code of 1986, as amended. 
  
 C.    Common Stock shall mean the common stock of the Corporation. 
  
 D.    Corporate Transaction shall mean either of the following shareholder-approved transactions to which the Corporation is a
party: 
  
 (i)    any
transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation) in which more than fifty percent (50%) of the Corporation’s outstanding voting stock is transferred to a person or
persons different from those who held the stock immediately prior to such transaction, or 
  
 (ii)    the sale, transfer or other disposition of all or substantially all of the Corporation’s assets in
complete liquidation or dissolution of the Corporation. 
  
 E.    Employee shall mean an individual who is in the employ of the Corporation or any Parent or Subsidiary, subject to the control and direction of the employer entity as to both the work to be performed and the
manner and method of performance. 
  
 F.    Fair Market Value per share of Common Stock on any relevant date under the Plan shall be the value determined in accordance with the following provisions: 
  
 (i)    If the Common Stock is not at the
time listed or admitted to trading on any Stock Exchange but is traded on the NASDAQ National Market System, the Fair Market Value shall be the closing selling price per share of common Stock on the date in question, as the price is reported by the
National Association of Securities Dealers through the NASDAQ National Market System or any successor system. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists. 
  
 (ii)    If the Common Stock is at the time listed or admitted to trading on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date
in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for
the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
  

 10 

 (iii)    If the Common Stock is at the time neither listed nor
admitted to trading on any Stock Exchange nor traded on the NASDAQ National Market system, then such Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem
appropriate. 
  
 G.    Incentive Option
shall mean a stock option which satisfies the requirements of Internal Revenue Code Section 422. 
  
 H.    Non-Statutory Option shall mean a stock option not intended to meet the requirements of Code Section 422. 
  
 I.    Parent shall mean any corporation (other
than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 J.    Permanent Disability shall have the meaning assigned to such term in Code Section 22(e)(3). 
  
 K.    Service shall mean the provision of services
to the Corporation or any parent or Subsidiary by an individual in the capacity of an Employee, a non-employee member of the Board, or a consultant or independent contractor. 
  
 L.    Stock Exchange shall mean any national securities exchange determined by the Plan
Administrator to be the primary market in which the Common Stock is then listed or admitted for trading. 
  
 M.    Subsidiary shall mean each corporation (other than the Corporation) in an unbroken chain of corporations beginning with
the Corporation, provided each such corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain. 
  
 N.    10% Stockholder shall mean the owner of the stock (as determined under Code Section 424(d)) possessing ten percent (10%) or more of the total combined voting power of all classes of stock of the Corporation.

  
 9.    USE OF PROCEEDS 

 
 Any cash received by the Corporation from the issuance of shares of Common
Stock under the Plan shall be used for general corporate purposes. 
  
 10.    WITHHOLDING 
  
 The
Corporation’s obligation to deliver shares upon the exercise of any options granted under Article II or the purchase of any shares issued under Article III shall be subject to 

  

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the satisfaction of all applicable Federal, State and local income and employment tax withholding requirements. 
  
 11.    REGULATORY APPROVALS 
  
 The implementation of the Plan, the granting of any options under the Option
Grant Program, the issuance of any shares under the Stock Issuance program, and the issuance of Common Stock upon the exercise of the option grants made hereunder shall be subject to the Corporation’s procurement of all approvals and permits
required by regulatory authorities having jurisdiction over the Plan, the options granted under it, and the Common Stock issued pursuant to it. 
  

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