Document:

<PAGE>

                                                                     EXHIBIT 4.2

                           DOMINION RESOURCES, INC.
                                    Issuer

                                      TO

                           THE CHASE MANHATTAN BANK
                                    Trustee

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

                        Seventh Supplemental Indenture

                          Dated as of October 1, 2000

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

                                 $412,500,000

                       2000 Series G 8.05% Senior Notes,

                             due November 15, 2006
<PAGE>

                              TABLE OF CONTENTS*

<TABLE>
<S>                                                                          <C>
                                   ARTICLE I
                       2000 SERIES G 8.05% SENIOR NOTES

     SECTION 101.  Establishment............................................   1
     SECTION 102.  Definitions..............................................   2
     SECTION 103.  Payment of Principal and Interest........................   5
     SECTION 104.  Denominations............................................   6
     SECTION 105.  Global Securities........................................   6
     SECTION 106.  Remarketing..............................................   7
     SECTION 107.  Sinking Fund.............................................  10
     SECTION 108.  Additional Interest......................................  10
     SECTION 109.  Paying Agent.............................................  10
     SECTION 110.  Limitation on Liens......................................  10

                                  ARTICLE II
                           MISCELLANEOUS PROVISIONS

     SECTION 201.  Recitals by Company......................................  14
     SECTION 202.  Ratification and Incorporation of Original Indenture.....  14
     SECTION 203.  Executed in Counterparts.................................  14
     SECTION 204.  Assignment...............................................  14
</TABLE>

_______________________
     *    This Table of Contents does not constitute part of the Indenture or
have any bearing upon the interpretation of any of its terms and provisions.
<PAGE>

     THIS SEVENTH SUPPLEMENTAL INDENTURE is made as of the first day of October,
2000, by and between DOMINION RESOURCES, INC., a Virginia corporation, having
its principal office at 120 Tredegar Street, Richmond, Virginia 23219 (the
"Company"), and THE CHASE MANHATTAN BANK, a New York banking corporation, as
Trustee (herein called the "Trustee").

                             W I T N E S S E T H:

     WHEREAS, the Company has heretofore entered into a Senior Indenture, dated
as of June 1, 2000 (the "Original Indenture"), as heretofore supplemented and
amended, with the Trustee;

     WHEREAS, the Original Indenture is incorporated herein by this reference
and the Original Indenture, as heretofore supplemented and amended and as
further supplemented by this Seventh Supplemental Indenture, is herein called
the "Indenture";

     WHEREAS, under the Original Indenture, a new series of Securities may at
any time be established in accordance with the provisions of the Original
Indenture and the terms of such series may be described by a supplemental
indenture executed by the Company and the Trustee;

     WHEREAS, the Company proposes to create under the Indenture a series of
Securities;

     WHEREAS, additional Securities of other series hereafter established,
except as may be limited in the Original Indenture as at the time supplemented
and modified, may be issued from time to time pursuant to the Indenture as at
the time supplemented and modified; and

     WHEREAS, all conditions necessary to authorize the execution and delivery
of this Seventh Supplemental Indenture and to make it a valid and binding
obligation of the Company have been done or performed.

     NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as follows:

                                   ARTICLE I
                       2000 SERIES G 8.05% SENIOR NOTES

     SECTION 101.  Establishment. There is hereby established a new series of
                   -------------
Securities to be issued under the Indenture, to be designated as the Company's
2000 Series G 8.05% Senior Notes, due November 15, 2006 (the "Series G Senior
Notes").

     There are to be authenticated and delivered $412,500,000 principal amount
of Series G Senior Notes and no further Series G Senior Notes shall be
authenticated and delivered except as provided by Sections 304, 305, 306 or 905
of the Original Indenture or by Section 106 hereof.
<PAGE>

     The Series G Senior Notes shall be issued in definitive fully registered
form without coupons, in substantially the form set out in Exhibit A hereto.
                                                           ---------
The entire principal amount of the Series G Senior Notes shall initially be
evidenced by one or more certificates issued to The Chase Manhattan Bank, as
Purchase Contract Agent under the Purchase Contract Agreement (as defined
below).

     The form of the Trustee's Certificate of Authentication for the Series G
Senior Notes shall be in substantially the form set forth in Exhibit B hereto.
                                                             ---------

     Each Series G Senior Note shall be dated the date of authentication thereof
and shall bear interest from the date of original issuance thereof or from the
most recent Interest Payment Date to which interest has been paid or duly
provided for.

     SECTION 102.   Definitions. The following defined terms used herein shall,
                    -----------
unless the context otherwise requires, have the meanings specified below.
Capitalized terms used herein for which no definition is provided herein shall
have the meanings set forth in the Original Indenture or the Purchase Contract
Agreement, as the case may be and as the context may require.

     "Applicable Spread" means the spread determined as set forth below, based
on the Prevailing Rating of the Series G Senior Notes in effect at the close of
business on the Business Day immediately preceding the date of the Failed
Remarketing:

     Prevailing Rating                                          Spread
     -----------------                                          ------
     AA/"Aa2"................................................    3.00%
     A/"A2"..................................................    4.00%
     BBB/"Baa2"..............................................    5.00%
     Below BBB/"Baa2"........................................    7.00%

     "Business Day" has the meaning set forth in Section 1.1(d) of the Purchase
Contract Agreement.

     "Interest Payment Dates" means February 15, May 15, August 15 and November
15 of each year, commencing on February 15, 2001.

     "Lien" means any mortgage, lien, pledge, security interest or other
encumbrance of any kind.

     "Material Subsidiary" means a Subsidiary of the Company whose total assets
(as determined in accordance with GAAP) represent at least 20% of the total
assets of the Company on a consolidated basis; provided, however, that in no
event shall Dominion Capital, Inc. be included as a Material Subsidiary.

     "Original Issue Date" means October 12, 2000.

     "Outstanding", when used with respect to the Series G Senior Notes, means,
as of the date of determination, all Series G Senior Notes, theretofore
authenticated and delivered under the Indenture, except:

                                       2
<PAGE>

          (i)   Series G Senior Notes theretofore canceled by the Trustee or
delivered to the Trustee for cancellation;

          (ii)  Series G Senior Notes for whose payment at Maturity the
necessary amount of money or money's worth has been theretofore deposited (other
than pursuant to Section 402 of the Original Indenture) with the Trustee or any
Paying Agent (other than the Company) in trust or set aside and segregated in
trust by the Company (if the Company shall act as its own Paying Agent) for the
Holders of such Series G Senior Notes.

          (iii) Series G Senior Notes with respect to which the Company has
effected defeasance or covenant defeasance has been effected pursuant to Section
402 of the Original Indenture; and

          (iv)  Series G Senior Notes that have been paid pursuant to Section
306 of the Original Indenture or in exchange for or in lieu of which other
Series G Senior Notes have been authenticated and delivered pursuant to the
Indenture, other than any such Series G Senior Notes in respect of which there
shall have been presented to the Trustee proof satisfactory to it that such
Series G Senior Notes are held by a bona fide purchaser in whose hands such
Series G Senior Notes are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Series G Senior Notes have given any request,
demand, authorization, direction, notice, consent or waiver hereunder or are
present at a meeting of Holders of Series G Senior Notes for quorum purposes,
Series G Senior Notes owned by the Company or any other obligor upon the Series
G Senior Notes or any Affiliate of the Company or such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in making any such determination or
relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Series G Senior Notes which a Responsible Officer of the Trustee
knows to be so owned shall be so disregarded.  Series G Senior Notes so owned
which shall have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee (A) the pledgee's
right so to act with respect to such Series G Senior Notes and (B) that the
pledgee is not the Company or any other obligor upon the Series G Senior Notes
or an Affiliate of the Company or such other obligor.

     "Pledge Agreement" means the Pledge Agreement, dated as of October 12,
2000, among the Company, Bank One Trust Company, N.A., as Collateral Agent and
Securities Intermediary, and The Chase Manhattan Bank, as Purchase Contract
Agent.

     "Prevailing Rating," for the purposes of the definition of Applicable
Spread, means:

     (i) AA/"Aa2" if the Series G Senior Notes have a credit rating of AA or
better by Standard & Poor's Ratings Services ("S&P") and "Aa2" or better by
Moody's Investors Service, Inc. ("Moody's") or the equivalent of such ratings by
such agencies or a substitute rating agency or substitute rating agencies
selected by the Remarketing Agent;

                                       3
<PAGE>

     (ii) if not under clause (i) above, then A/"A2" if the Series G Senior
Notes have a credit rating of A or better by S&P and "A2" or better by Moody's
or the equivalent of such ratings by such agencies or a substitute rating agency
or substitute rating agencies selected by the Remarketing Agent;

     (iii) if not under clauses (i) or (ii) above, then BBB/"Baa2" if the Series
G Senior Notes have a credit rating of BBB or better by S&P and "Baa2" or better
by Moody's or the equivalent of such ratings by such agencies or a substitute
rating agency or substitute rating agencies selected by the Remarketing Agent;
or

     (iv) if not under clauses (i), (ii) or (iii) above, then Below BBB/"Baa2".

     Notwithstanding the foregoing, (A) if (i) the credit rating of the Series G
Senior Notes by S&P shall be on the "Credit Watch" of S&P with a designation of
"negative implications" or "developing", or (ii) the credit rating of the Series
G Senior Notes by Moody's shall be on the "Corporate Credit Watch List" of
Moody's with a designation of "downgrade" or "uncertain", or, in each case, on
any successor list of S&P or Moody's with a comparable designation, the
Prevailing Ratings of the Series G Senior Notes shall be deemed to be within a
range one full level lower in the table set forth in the definition of
Applicable Spread than those actually assigned to the Series G Senior Notes by
S&P and Moody's and (B) if the Series G Senior Notes are rated by only one
rating agency prior to or on the Remarketing Date, the Prevailing Rating shall
at all times be determined without reference to the rating of any other rating
agency; provided that if no such rating agency shall have in effect a rating for
the Series G Senior Notes and the Remarketing Agent is unable to identify a
substitute rating agency or rating agencies, the Prevailing Rating shall be
below BBB/"Baa2".

     "Principal Property" means any plant or facility of the Company located in
the United States that in the opinion of the Board of Directors or management of
the Company is of material importance to the business conducted by the Company
and its consolidated Subsidiaries taken as whole.

     "Purchase Contract Agreement" means the Purchase Contract Agreement, dated
as of October 12, 2000, between the Company and The Chase Manhattan Bank, as
Purchase Contract Agent.

     "Regular Record Date" means, with respect to each Interest Payment Date,
the close of business on the Business Day preceding such Interest Payment Date;
provided, that with respect to Series G Senior Notes that are not in book-entry
only form, the Regular Record Date shall be the close of business on the 15/th/
Business Day preceding such Interest Payment Date.

     "Remarketing" has the meaning set forth in Section 106.

     "Reset Rate" means the rate per annum that results from:

          (i)  the Remarketing of the Series G Senior Notes on the third
Business Day immediately preceding the Purchase Contract Settlement Date (the
"Remarketing Date") pursuant to the Remarketing Agreement, dated as of October
12, 2000 (the "Remarketing Agreement"), between the Company and Lehman Brothers
Inc. (the "Remarketing Agent"); or

                                       4
<PAGE>

          (ii) upon the occurrence of a Failed Remarketing (as such term is
defined below), the Two-Year Benchmark Rate plus the Applicable Spread.

     "Stated Maturity" means November 15, 2006.

     "Telerate" means the Dow Jones Telerate Service.

     "Two-Year Benchmark Rate" means the bid side rate displayed at 10:00 a.m.
(New York City time) on the third Business Day preceding the Purchase Contract
Settlement Date for direct obligations of the United States having a maturity
comparable to the remaining term to the Stated Maturity of the Series G Senior
Notes, as agreed upon by the Company and the Remarketing Agent as displayed in
the Telerate system or, if the Telerate system is no longer available or, in the
judgment of the Remarketing Agent (after consultation with the Company), no
longer an appropriate system from which to obtain such rate, such other
nationally recognized quotation system as, in the judgment of the Remarketing
Agent (after consultation with the Company) is appropriate. If this rate is not
so displayed, the Two-Year Benchmark Rate will be calculated by the Remarketing
Agent as the yield to maturity for direct obligations of the United States
having a maturity comparable to the remaining term to the Stated Maturity of the
Series G Senior Notes, expressed as a bond equivalent on the basis of a year of
365 or 366 days, as applicable, and applied on a daily basis, and computed by
taking the arithmetic mean of the secondary market bid rates, as of 10:30 a.m.
(New York City time) on the third Business Day preceding the Purchase Contract
Settlement Date of three leading United States government securities dealers
selected by the Remarketing Agent (after consultation with the Company) (which
may include the Remarketing Agent or an Affiliate thereof). However, if, in the
judgment of the Remarketing Agent, after consultation with the Company, direct
obligations of the United States are no longer appropriate benchmarks for the
purpose of setting the Reset Rate if a Failed Remarketing has occurred, the
Remarketing Agent and the Company will agree upon another Two-Year Benchmark
Rate.

     SECTION 103.  Payment of Principal and Interest. The principal of the
                   ---------------------------------
Series G Senior Notes shall be due at the Stated Maturity. The unpaid principal
amount of the Series G Senior Notes shall bear interest at the rate of 8.05% per
annum to but excluding the Purchase Contract Settlement Date and at the Reset
Rate from and including the Purchase Contract Settlement Date, such interest to
accrue from the Original Issue Date or from the most recent Interest Payment
Date to which interest has been paid or duly provided for until the principal
thereof is paid or made available for payment. The interest payment due on
February 15, 2005 will thus include interest for the day of November 15, 2004
calculated at the rate of 8.05% per annum and interest for the days from and
including November 16, 2004 to, but not including, February 15, 2005 calculated
at the Reset Rate. Interest shall be paid quarterly in arrears on each Interest
Payment Date to the Person in whose name the Series G Senior Notes are
registered on the Regular Record Date for such Interest Payment Date; provided
that interest payable at the Stated Maturity of principal as provided herein
will be paid to the Person to whom principal is payable. Any such interest that
is not so punctually paid or duly provided for will forthwith cease to be
payable to the Holders on such Regular Record Date and may either be paid to the
Person or Persons in whose name the Series G Senior Notes are registered at the
close of business on a Special Record Date for the payment of such defaulted
interest to be fixed by the Trustee (in accordance with Section 307 of the
Original Indenture), notice whereof shall be given

                                       5
<PAGE>

to Holders of the Series G Senior Notes not less than ten (10) days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange, if any, on which
the Series G Senior Notes may be listed, and upon such notice as may be required
by any such exchange, all as more fully provided in the Original Indenture.

     Payments of interest on the Series G Senior Notes will include interest
accrued to but excluding the respective Interest Payment Dates. Interest
payments for the Series G Senior Notes shall be computed and paid (1) for any
full quarterly period, on the basis of a 360-day year of twelve 30-day months,
(2) for any period shorter than a full quarterly period, on the basis of a 30-
day month and (3) for any period less than a month, on the basis of the actual
number of days elapsed per 30-day month. In the event that any date on which
interest is payable on the Series G Senior Notes is not a Business Day, then
payment of the interest payable on such date will be made on the next succeeding
day that is a Business Day (and without any interest or payment in respect of
any such delay), in each case with the same force and effect as if made on the
date the payment was originally payable. However, if such Business Day is in the
next calendar year, then such payment will be made on the preceding Business
Day.

     Payment of the principal and interest on the Series G Senior Notes shall be
made at the office of the Paying Agent in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts, with any such payment that is due at the Stated
Maturity of any Series G Senior Notes being made upon surrender of such Series G
Senior Notes to the Paying Agent. Payments of interest (including interest on
any Interest Payment Date) will be made, subject to such surrender where
applicable, at the option of the Company, (i) by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register or (ii) by wire transfer at such place and to such account at a banking
institution in the United States as may be designated in writing to the Trustee
at least sixteen (16) days prior to the date for payment by the Person entitled
thereto.  In the event that any date on which principal and interest is payable
on the Series G Senior Notes is not a Business Day, then payment of the
principal and interest payable on such date will be made on the next succeeding
day that is a Business Day (and without any interest or payment in respect of
any such delay), in each case with the same force and effect as if made on the
date the payment was originally payable.  However, if such Business Day is in
the next calendar year, then such payment will be made on the preceding Business
Day.

     SECTION 104.  Denominations. The Series G Senior Notes may be issued in
                   -------------
denominations of $50, or any integral multiple thereof.

     SECTION 105.  Global Securities. The Series G Senior Notes that, in
                   -----------------
accordance with the Purchase Contract Agreement, are no longer part of the
Corporate PIES will be issued initially in the form of one or more Global
Securities registered in the name of the Depositary (which shall be The
Depository Trust Company) or its nominee. Except under the limited circumstances
described below, Series G Senior Notes represented by such Global Securities
will not be exchangeable for, and will not otherwise be issuable as, Series G
Senior Notes in definitive form. The Global Securities described above may not
be transferred except by the

                                       6
<PAGE>

Depositary to a nominee of the Depositary or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary or to a successor Depositary
or its nominee.

     Owners of beneficial interests in such a Global Security will not be
considered the Holders thereof for any purpose under the Indenture, and no
Global Security representing a Series G Senior Note shall be exchangeable,
except for another Global Security of like denomination and tenor to be
registered in the name of the Depositary or its nominee or to a successor
Depositary or its nominee or except as described below. The rights of Holders of
such Global Security shall be exercised only through the Depositary.

     A Global Security shall be exchangeable for Series G Senior Notes
registered in the names of persons other than the Depositary or its nominee only
if (i) the Depositary notifies the Company that it is unwilling or unable to
continue as a Depositary for such Global Security and no successor Depositary
shall have been appointed by the Company within 90 days of receipt by the
Company of such notification, or if at any time the Depositary ceases to be a
clearing agency registered under the Exchange Act at a time when the Depositary
is required to be so registered to act as such Depositary and no successor
Depositary shall have been appointed by the Company within 90 days after it
becomes aware of such cessation, or (ii) the Company in its sole discretion
determines that such Global Security shall be so exchangeable.  Any Global
Security that is exchangeable pursuant to the preceding sentence shall be
exchangeable for Series G Senior Notes registered in such names as the
Depositary shall direct.

     SECTION 106.  Remarketing. The Series G Senior Notes owned by each Holder
                   -----------
of a Corporate PIES that does not effect a Cash Settlement shall be remarketed
by the Remarketing Agent on the Remarketing Date pursuant to the Remarketing
Procedures (as such term is defined in the Remarketing Agreement) (the
"Remarketing"). The Series G Senior Notes not owned as part of a Corporate PIES
shall also be remarketed in the Remarketing if the Holders so elect in the
manner set forth below.

     So long as the Corporate PIES, Treasury PIES or the Series G Senior Notes
are evidenced by one or more global security certificates deposited with the
Depositary, the Company shall request, not later than 15 nor more than 30
calendar days prior to the Remarketing Date, that the Depositary notify,
directly or indirectly, each beneficial owner of a Corporate PIES and each
beneficial owner of a Series G Senior Note not a part of a Corporate PIES of the
Remarketing and of the procedures that must be followed in connection with the
Remarketing.

     Under Section 5.4 of the Purchase Contract Agreement, Holders of PIES that
do not give notice of their intention to make a Cash Settlement of the related
Purchase Contracts prior to 5:00 p.m. (New York City time) on the seventh
Business Day immediately preceding the Purchase Contract Settlement Date
pursuant to Section 5.4(a)(i) thereof, or that give such notice but fail to make
such payment prior to 11:00 a.m. (New York City time) on the fifth Business Day
immediately preceding the Purchase Contract Settlement Date as required by
Section 5.4(a)(ii) thereof, shall be deemed to have consented to the disposition
of the Pledged Series G Senior Notes pursuant to the Remarketing. Each Holder of
Series G Senior Notes not a part of the Corporate PIES may elect to have all or
a portion of its Series G Senior Notes (in

                                       7
<PAGE>

denominations of $50 or integral multiples thereof) remarketed by notifying the
Trustee of the aggregate principal amount of Series G Senior Notes that it
wishes to have remarketed prior to 11:00 a.m. (New York City time) on the fifth
Business Day immediately preceding the Purchase Contract Settlement Date. Any
notice pursuant to the preceding sentence shall be substantially in the form of
Exhibit G to the Purchase Contract Agreement and shall be irrevocable and may
not be conditioned upon the level at which the Reset Rate is established in the
Remarketing. Concurrently with the giving of such notice, the Holder of Series G
Senior Notes, all or a portion of which is to be remarketed, shall deliver or
cause such Series G Senior Notes to be delivered to the Trustee, who shall in
turn deliver or cause to be delivered to the Remarketing Agent the Series G
Senior Notes, or portions thereof to be remarketed.

     Promptly after 11:00 a.m. (New York City time) on the fifth Business Day
preceding the Purchase Contract Settlement Date, the Trustee shall notify the
Remarketing Agent, the Company, the Collateral Agent and the Purchase Contract
Agent of the aggregate principal amount of Series G Senior Notes to be tendered
for purchase in the Remarketing on the basis of the elections referred to in the
second to last sentence of the foregoing paragraph.

     The right of each Holder of Series G Senior Notes to have its Series G
Senior Notes tendered for purchase will be limited to the extent that (i) the
Remarketing Agent conducts a Remarketing pursuant to the terms of the
Remarketing Agreement, (ii) the Remarketing Agent is able to find a purchaser or
purchasers for the tendered Series G Senior Notes and (iii) such purchaser or
purchasers deliver the purchase price therefor to the Remarketing Agent.

     On the Remarketing Date, the Remarketing Agent shall use commercially
reasonable efforts to remarket, at a price at least equal to 100.25% of the
principal amount of a Series G Senior Note (the "Principal Amount"), the Series
G Senior Notes tendered or deemed tendered for purchase.

     The Remarketing Agent shall on the Remarketing Date set the Reset Rate at a
rate per annum (rounded to the nearest one-thousandth of one percent per annum)
that the Remarketing Agent determines to be the lowest rate per annum that will
enable it to remarket all of the Series G Senior Notes tendered or deemed
tendered for purchase at a price equal to 100.25% of the Principal Amount.

     Upon receipt of the proceeds from the Remarketing, the Remarketing Agent
shall:

     (x)  retain an amount equal to 25 basis points (0.25%) of the Principal
          Amount for the performance of its services as Remarketing Agent;

     (y)  remit to the Collateral Agent all excess proceeds of the Series G
          Senior Notes subject to the Pledge Agreement that were remarketed; and

     (z)  remit to the Holders all excess proceeds of the Series G Senior Notes
          not subject to the Pledge Agreement that were remarketed.

                                       8
<PAGE>

     If none of the Holders of Series G Senior Notes elects, or is deemed to
have elected, to have their Series G Senior Notes remarketed in the Remarketing,
the Remarketing Agent in its sole discretion, after consultation with the
Company, shall determine the rate that would have been established had a
Remarketing been held on the Remarketing Date, and such rate shall be the Reset
Rate. By approximately 4:30 p.m. (New York City time) on the Remarketing Date,
the Remarketing Agent shall advise by telephone (promptly confirmed in writing)
the Depositary, the Trustee and the Company of such Reset Rate.

     If, by 4:00 p.m. (New York City time) on the Remarketing Date, the
Remarketing Agent is unable to remarket all of the Series G Senior Notes
tendered or deemed tendered for purchase, for any reason, a failed Remarketing
("Failed Remarketing") shall be deemed to have occurred, and the Remarketing
Agent shall so advise by telephone (promptly confirmed in writing) the
Depositary, the Trustee, the Purchase Contract Agent and the Company.

     Provided that there has not been a Failed Remarketing, by approximately
4:30 p.m. (New York City time) on the Remarketing Date, the Remarketing Agent
shall advise, by telephone (promptly confirmed in writing in the case of clause
(A)):

     (A)  the Depositary, the Trustee and the Company of the Reset Rate
          determined in the Remarketing and the aggregate principal amount of
          Series G Senior Notes sold in the Remarketing;

     (B)  each purchaser (or the Depositary participant thereof) of Series G
          Senior Notes in the Remarketing of the Reset Rate and the aggregate
          principal amount of Series G Senior Notes such purchaser is to
          purchase; and

     (C)  each purchaser to give instructions to the Depositary participant to
          pay the purchase price on the Purchase Contract Settlement Date in
          immediately available funds against delivery of the Series G Senior
          Notes purchased through the facilities of the Depositary.

     In the case of a Failed Remarketing, by approximately 4:30 p.m. (New York
City time) on the Remarketing Date, the Remarketing Agent shall advise by
telephone (promptly confirmed in writing) the Depositary, the Trustee and the
Company of the Reset Rate.

     The Remarketing Agent's calculation of the Reset Rate shall be conclusive
and binding and the Trustee shall have no responsibility for the calculation
thereof.

     In accordance with the Depositary's normal procedures, on the Purchase
Contract Settlement Date, the transactions described above with respect to each
Series G Senior Note tendered for purchase and sold in the Remarketing shall be
executed through the Depositary, and the accounts of the respective Depositary
participants shall be debited and credited and such Series G Senior Notes
delivered by book entry as necessary to effect purchases and sales of such
Series G Senior Notes. The Depositary shall make payment in accordance with its
normal procedures.

                                       9
<PAGE>

     If any Holder of Series G Senior Notes selling Series G Senior Notes in the
Remarketing fails to deliver such Series G Senior Notes, the direct or indirect
Depositary participant of such selling Holder and of any other Person who was to
have purchased Series G Senior Notes in the Remarketing may deliver to any such
other Person an aggregate principal amount of Series G Senior Notes that is less
than the aggregate principal amount of Series G Senior Notes that otherwise was
to be purchased by such Person. In such event, the aggregate principal amount of
Series G Senior Notes to be so delivered shall be determined by such direct or
indirect Depositary participant, and delivery of such lesser aggregate principal
amount of Series G Senior Notes shall constitute good delivery.

     The Remarketing Agent is not obligated to purchase any Series G Senior
Notes that otherwise would remain unsold in the Remarketing. Neither the Company
nor the Remarketing Agent shall be obligated in any case to provide funds to
make payment upon tender of the Series G Senior Notes for Remarketing.

     Under the Remarketing Agreement, the Company, in its capacity as issuer of
the Series G Senior Notes, shall be liable for, and shall pay, any and all costs
and expenses incurred in connection with the Remarketing, other than the
Remarketing Fee.

     The tender and settlement procedures set forth herein, including provisions
for payment by purchasers of the Series G 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 Series G Senior Notes at the
time of the Remarketing, to facilitate the tendering and remarketing of the
Series G Senior Notes in certificated form, and shall provide for the
authentication and delivery of Series G Senior Notes in a principal amount equal
to the unremarketed portion of such Series G Senior Notes. In addition, the
Remarketing Agent may modify the settlement procedures set forth herein in order
to facilitate the settlement process.

     SECTION 107.  Sinking Fund. The Series G Senior Notes shall not have a
                   ------------
sinking fund.

     SECTION 108.  Additional Interest. Any principal of and installment of
                   -------------------
interest on the Series G Senior Notes that is overdue shall bear interest at the
rate of 8.05% (to the extent that the payment of such interest shall be legally
enforceable), from the dates such amounts are due until they are paid or made
available for payment, and such interest shall be payable on demand.

     SECTION 109.  Paying Agent. The Trustee shall initially serve as Paying
                   ------------
Agent with respect to the Series G Senior Notes, with the Place of Payment
initially being the Corporate Trust Office of the Trustee.

     SECTION 110.  Limitation on Liens. The Company will not, while any of the
                   -------------------
Series G Senior Notes remain Outstanding, create, or suffer to be created or to
exist, any Lien upon any Principal Property of the Company or upon any shares of
stock of any Material

                                      10
<PAGE>

Subsidiary of the Company, whether such Principal Property is, or shares of
stock are, now owned or hereafter acquired, to secure any indebtedness for
borrowed money of the Company, unless it shall make effective provision whereby
the Series G Senior Notes then Outstanding shall be secured by such Lien equally
and ratably with any and all indebtedness for borrowed money thereby secured so
long as any such indebtedness shall be so secured; provided, however, that
nothing in this Section shall be construed to prevent the Company from creating,
or from suffering to be created or to exist, any Liens, or any agreements, with
respect to:

     (1)  purchase money mortgages, or other purchase money liens, pledges,
          security interests or encumbrances of any kind upon property hereafter
          acquired by the Company, or Liens of any kind existing on any property
          or any shares of stock at the time of the acquisition thereof
          (including Liens which exist on any property or any shares of stock of
          a Person which is consolidated with or merged with or into the Company
          or which transfers or leases all or substantially all of its
          properties to the Company), or conditional sales agreements or other
          title retention agreements and leases in the nature of title retention
          agreements with respect to any property hereafter acquired; provided,
          however, that no such Lien shall extend to or cover any other property
          of the Company;

     (2)  Liens upon any property of the Company or any shares of stock of any
          Material Subsidiary of the Company existing as of the date of the
          initial issuance of the Series G Senior Notes or upon the shares of
          stock of any corporation, which Liens existed at the time such
          corporation became a Material Subsidiary of the Company; liens for
          taxes or assessments or other governmental charges or levies; pledges
          to secure other governmental charges or levies; pledges or deposits to
          secure obligations under worker's compensation laws, unemployment
          insurance and other social security legislation, including liens of
          judgments thereunder which are not currently dischargeable; pledges or
          deposits to secure performance in connection with bids, tenders,
          contracts (other than contracts for the payment of money) or leases to
          which the Company is a party; pledges or deposits to secure public or
          statutory obligations of the Company; builders', materialmen's,
          mechanics', carriers', warehousemen's, workers', repairmen's,
          operators', landlords' or other like liens in the ordinary course of
          business, or deposits to obtain the release of such liens; pledges or
          deposits to secure, or in lieu of, surety, stay, appeal, indemnity,
          customs, performance or return-of-money bonds; other pledges or
          deposits for similar purposes in the ordinary course of business;
          liens created by or resulting from any litigation or proceeding which
          at the time is being contested in good faith by appropriate
          proceedings; liens incurred in connection with the issuance of
          bankers' acceptances and lines of credit, bankers' liens or rights of
          offset and any security given in the ordinary course of business to
          banks or others to secure any indebtedness payable on demand or
          maturing within 12 months of the date that such indebtedness is
          originally incurred; liens incurred in connection with repurchase,
          swap or other similar agreements (including, without limitation,
          commodity price, currency exchange and interest rate protection
          agreements); leases made, or existing on property acquired, in the
          ordinary course of business; liens securing industrial revenue or
          pollution control bonds; liens, pledges, security interests or other
          encumbrances on any property

                                      11
<PAGE>

          arising in connection with any defeasance, covenant defeasance or in-
          substance defeasance of indebtedness of the Company, including the
          Series G Senior Notes; liens created in connection with, and created
          to secure, a non-recourse obligation; zoning restrictions, easements,
          licenses, rights-of-way, restrictions on the use of property or minor
          irregularities in title thereto, which do not, in the opinion of the
          Company, materially impair the use of such property in the operation
          of the business of the Company or the value of such property for the
          purpose of such business;

     (3)  Liens in favor of the United States, any foreign country or any
          department, agency or instrumentality or political subdivision of any
          such jurisdiction, to secure partial, progress, advance or other
          payments pursuant to any contract or statute or to secure any
          indebtedness incurred for the purpose of financing all or any part of
          the purchase price or the cost of constructing or improving the
          property subject to such mortgages, including, without limitation,
          mortgages to secure indebtedness of the pollution control or
          industrial revenue bond type;

     (4)  indebtedness which may be issued by the Company in connection with a
          consolidation or merger of the Company or any Material Subsidiary of
          the Company with or into any other Person (which may be an Affiliate
          of the Company or any Material Subsidiary of the Company) in exchange
          for or otherwise in substitution for secured indebtedness of such
          Person ("Third Party Debt") which by its terms (i) is secured by a
          mortgage on all or a portion of the property of such Person, (ii)
          prohibits secured indebtedness from being incurred by such Person,
          unless the Third Party Debt shall be secured equally and ratably with
          such secured indebtedness or (iii) prohibits secured indebtedness from
          being incurred by such Person;

     (5)  indebtedness of any Person which is required to be assumed by the
          Company in connection with a consolidation or merger of such Person,
          with respect to which any property of the Company is subjected to a
          Lien;

     (6)  Liens of any kind upon any property acquired, constructed, developed
          or improved by the Company (whether alone or in association with
          others) after the date of the initial issuance of the Series G Senior
          Notes which are created prior to, at the time of, or within 18 months
          after such acquisition (or in the case of property constructed,
          developed or improved, after the completion of such construction,
          development or improvement and commencement of full commercial
          operation of such property, whichever is later) to secure or provide
          for the payment of any part of the purchase price or cost thereof;
          provided that in the case of such construction, development or
          improvement the Liens shall not apply to any property theretofore
          owned by the Company other than theretofore unimproved real property;

     (7)  Liens in favor of the Company, one or more Material Subsidiaries of
          the Company, one or more wholly-owned Subsidiaries of the Company or
          any of the foregoing in combination;

                                      12
<PAGE>

     (8)  the replacement, extension or renewal (or successive replacements,
          extensions or renewals), as a whole or in part, of any Lien, or of any
          agreement, referred to above in clauses (1) through (7) inclusive, or
          the replacement, extension or renewal (not exceeding the principal
          amount of indebtedness secured thereby together with any premium,
          interest, fee or expense payable in connection with any such
          replacement, extension or renewal) of the indebtedness secured
          thereby; provided that such replacement, extension or renewal is
          limited to all or a part of the same property that secured the Lien
          replaced, extended or renewed (plus improvements thereon or additions
          or accessions thereto); or

     (9)  any other Lien not excepted by the foregoing clauses (1) through (8);
          provided that immediately after the creation or assumption of such
          Lien, the aggregate principal amount of indebtedness for borrowed
          money of the Company secured by all Liens created or assumed under the
          provisions of this clause (9) shall not exceed an amount equal to 10%
          of the common shareholders' equity of the Company, as shown on its
          consolidated balance sheet for the accounting period occurring
          immediately prior to the creation or assumption of such Lien.

     This Section 110 has been included in this Seventh Supplemental Indenture
expressly and solely for the benefit of the Series G Senior Notes and shall be
subject to covenant defeasance pursuant to Section 402(3) of the Original
Indenture.

                                      13
<PAGE>

                                  ARTICLE II
                           MISCELLANEOUS PROVISIONS

     SECTION 201.  Recitals by Company. The recitals in this Seventh
                   -------------------
Supplemental Indenture are made by the Company only and not by the Trustee, and
all of the provisions contained in the Original Indenture in respect of the
rights, privileges, immunities, powers and duties of the Trustee shall be
applicable in respect of the Series G Senior Notes and of this Seventh
Supplemental Indenture as fully and with like effect as if set forth herein in
full.

     SECTION 202.  Ratification and Incorporation of Original Indenture. As
                   ----------------------------------------------------
supplemented hereby, the Original Indenture is in all respects ratified and
confirmed, and the Original Indenture and this Seventh Supplemental Indenture
shall be read, taken and construed as one and the same instrument.

     SECTION 203.  Executed in Counterparts. This Supplemental Indenture may be
                   ------------------------
executed in several counterparts, each of which shall be deemed to be an
original, and such counterparts shall together constitute but one and the same
instrument.

     SECTION 204.  Assignment. The Company shall have the right at all times to
                   ----------
assign any of its rights or obligations under the Indenture with respect to the
Series G Senior Notes to a direct or indirect wholly-owned subsidiary of the
Company; provided that, in the event of any such assignment, the Company shall
remain primarily liable for the performance of all such obligations. The
Indenture may also be assigned by the Company in connection with a transaction
described in Article Eight of the Original Indenture.

                                      14
<PAGE>

     IN WITNESS WHEREOF, each party hereto has caused this instrument to be
signed in its name and behalf by its duly authorized officer, all as of the day
and year first above written.

                              DOMINION RESOURCES, INC.

                              By:_______________________________________

                              Name:_____________________________________

                              Title:____________________________________

                              THE CHASE MANHATTAN BANK, as Trustee

                              By:_______________________________________

                              Name:_____________________________________

                              Title:____________________________________

                                      15
<PAGE>

                                                                      MWBB DRAFT
                                                                October 10, 2000

                                   EXHIBIT A

                                    FORM OF
                       2000 SERIES G 8.05% SENIOR NOTE,
                             DUE NOVEMBER 15, 2006

     [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF [CEDE & CO.] OR SUCH OTHER NAME
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT IS MADE TO [CEDE & CO.], ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED
OWNER HEREOF, [CEDE & CO.,] HAS AN INTEREST HEREIN.]**

     [THIS SERIES G SENIOR NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE THEREOF.  THIS SERIES G SENIOR NOTE MAY NOT BE EXCHANGED IN WHOLE
OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SERIES G SENIOR
NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN
SUCH  DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE.]**

                        _______________________________

                           DOMINION RESOURCES, INC.

                        _______________________________
                                       $
                       2000 SERIES G 8.05% SENIOR NOTE,
                             DUE NOVEMBER 15, 2006

No.                                                        CUSIP No. 25746U AD 1

     Dominion Resources, Inc., a corporation duly organized and existing under
the laws of Virginia (herein called the "Company", which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to [Cede & Co.] **, or registered assigns (the
"Holder"), the principal sum of ____________ Dollars ($_____)[, or such other
principal amount as shall be set forth in the Schedule of Increases or Decreases
attached hereto,]*** on November 15, 2006 and to pay interest thereon from
October 12, 2000 or from the most recent Interest Payment Date to which interest
has been paid or duly provided for, quarterly in

_______________________________
** Insert in Global Securities.

*** Insert in Global Securities and Pledged Senior Notes.
<PAGE>

arrears on February 15, May 15, August 15 and November 15 of each year,
commencing on February 15, 2001, at the rate of 8.05% per annum to but excluding
the Purchase Contract Settlement Date and at the Reset Rate from and including
the Purchase Contract Settlement Date, until the principal hereof is paid or
made available for payment, provided that any principal, and any such
installment of interest, that is overdue shall bear interest at the rate of
8.05% per annum (to the extent that the payment of such interest shall be
legally enforceable), from the dates such amounts are due until they are paid or
made available for payment, and such interest shall be payable on demand. The
interest payment due on February 15, 2005 will thus include interest for the day
of November 15, 2004 calculated at the rate of 8.05% per annum and interest for
the days from and including November 16, 2004 to, but not including, February
15, 2005 calculated at the Reset Rate. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this Series G Senior Note
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which shall be the close of
business on the Business Day preceding such Interest Payment Date; provided that
interest payable at the Stated Maturity of principal will be paid to the Person
to whom principal is payable. With respect to Series G Senior Notes that are not
in book-entry only form, the Regular Record Date shall be the close of business
on the 15th Business Day preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the Person
in whose name this Series G Senior Note (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date for the payment
of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Series G Senior Notes not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Series G Senior Notes may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in said Indenture.

     Payments of interest on the Series G Senior Notes will include interest
accrued to but excluding the respective Interest Payment Dates. Interest
payments for the Series G Senior Notes shall be computed and paid (1) for any
full quarterly period on the basis of a 360-day year of twelve 30-day months,
(2) for any period shorter than a full quarterly period, on the basis of a 30-
day month and (3) for any period less than a month, on the basis of the actual
number of days elapsed per 30-day month. In the event that any date on which
interest is payable on the Series G Senior Notes is not a Business Day, then
payment of the interest payable on such date will be made on the next succeeding
day that is a Business Day (and without any interest or payment in respect of
any such delay), in each case with the same force and effect as if made on the
date the payment was originally payable. However, if such Business Day is in the
next calendar year, then such payment will be made on the preceding Business
Day.

     Payment of the principal of and interest on this Series G Senior Note will
be made at the office of the Paying Agent, in the Borough of Manhattan, City and
State of New York, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts,
with any such payment that is due at the Stated Maturity of any Series G Senior
Note being made upon surrender of such Series G Senior Note to such office or
agency; provided, however, that at the option of the Company payment of
interest, subject to such surrender where applicable, may be made (i) by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register or (ii) by wire transfer at such place and to
such

                                       2
<PAGE>

account at a banking institution in the United States as may be designated in
writing to the Trustee at least sixteen (16) days prior to the date for payment
by the Person entitled thereto.

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

     Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Series G
Senior Note shall not be entitled to any benefit under the Indenture or be valid
or obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated:                                       Dominion Resources, Inc.

                                             By:_______________________________

                                             Name:_____________________________

                                             Title:____________________________

                                       3
<PAGE>

                         CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.

                              THE CHASE MANHATTAN BANK,
                              as Trustee

                              By: ________________________________
                                  Authorized Officer

                                       4
<PAGE>

                       [REVERSE OF SERIES G SENIOR NOTE]

     This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of June 1, 2000, as heretofore supplemented
and amended and as further supplemented by a Seventh Supplemental Indenture
dated as of October 1, 2000 (collectively, as amended or supplemented from time
to time, herein called the "Indenture", which term shall have the meaning
assigned to it in such instrument), between the Company and The Chase Manhattan
Bank, as Trustee (herein called the "Trustee", which term includes any successor
trustee under the Indenture), and reference is hereby made to the Indenture for
a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  This Security is one of the series designated on
the face hereof (the "Series G Senior Notes") which is limited in aggregate
principal amount to $412,500,000.

     The Reset Rate shall be equal to the rate per annum that results from:

     (i) the Remarketing (as such term is defined below) of the Series G Senior
Notes on the third Business Day immediately preceding the Purchase Contract
Settlement Date (the "Remarketing Date") pursuant to the Remarketing Agreement,
dated as of October 12, 2000 (the "Remarketing Agreement"), between the Company
and Lehman Brothers Inc. (the "Remarketing Agent"); or

     (ii) upon the occurrence of a Failed Remarketing (as such term is defined
below), the Two-Year Benchmark Rate plus the Applicable Spread.

     The term "Two-Year Benchmark Rate" shall mean the bid side rate displayed
at 10:00 a.m. (New York City time) on the third Business Day preceding the
Purchase Contract Settlement Date for direct obligations of the United States
having a maturity comparable to the remaining term to the Stated Maturity of the
Series G Senior Notes, as agreed upon by the Company and the Remarketing Agent
as displayed in the Telerate system or, if the Telerate system is no longer
available or, in the judgment of the Remarketing Agent (after consultation with
the Company), no longer an appropriate system from which to obtain such rate,
such other nationally recognized quotation system as, in the judgment of the
Remarketing Agent (after consultation with the Company) is appropriate. If this
rate is not so displayed, the Two-Year Benchmark Rate will be calculated by the
Remarketing Agent as the yield to maturity for direct obligations of the United
States having a maturity comparable to the remaining term to the Stated Maturity
of the Series G Senior Notes, expressed as a bond equivalent on the basis of a
year of 365 or 366 days, as applicable, and applied on a daily basis, and
computed by taking the arithmetic mean of the secondary market bid rates, as of
10:30 a.m. (New York City time) on the third Business Day preceding the Purchase
Contract Settlement Date of three leading United States government securities
dealers selected by the Remarketing Agent (after consultation with the Company)
(which may include the Remarketing Agent or an Affiliate thereof). However, if,
in the judgment of the Remarketing Agent, after consultation with the Company,
direct obligations of the United States are no longer appropriate benchmarks for
the purpose of setting the Reset Rate if a Failed Remarketing has occurred, the
Remarketing Agent and the Company will agree upon another Two-Year Benchmark
Rate.

                                       5
<PAGE>

     The term "Applicable Spread" shall mean the spread determined as set forth
below, based on the Prevailing Rating of the Series G Senior Notes in effect at
the close of business on the Business Day immediately preceding the date of the
Failed Remarketing:

     Prevailing Rating                                      Spread
     -----------------                                      ------

     AA/"Aa2"............................................    3.00%

     A/"A2"..............................................    4.00%

     BBB/"Baa2"..........................................    5.00%

     Below BBB/"Baa2"....................................    7.00%

     For purposes of this definition, the term "Prevailing Rating" of the Series
G Senior Notes shall mean:

     (w) AA/"Aa2" if the Series G Senior Notes have a credit rating of AA or
better by Standard & Poor's Ratings Services ("S&P") and "Aa2" or better by
Moody's Investors Service, Inc. ("Moody's") or the equivalent of such ratings by
such agencies or a substitute rating agency or substitute rating agencies
selected by the Remarketing Agent;

     (x) if not under clause (w) above, then A/"A2" if the Series G Senior Notes
have a credit rating of A or better by S&P and "A2" or better by Moody's or the
equivalent of such ratings by such agencies or a substitute rating agency or
substitute rating agencies selected by the Remarketing Agent;

     (y) if not under clauses (w) or (x) above, then BBB/"Baa2" if the Series G
Senior Notes have a credit rating of BBB or better by S&P and "Baa2" or better
by Moody's or the equivalent of such ratings by such agencies or a substitute
rating agency or substitute rating agencies selected by the Remarketing Agent;
or

     (z) if not under clauses (w), (x) or (y) above, then Below BBB/"Baa2".

Notwithstanding the foregoing, (A) if (i) the credit rating of the Series G
Senior Notes by S&P shall be on the "Credit Watch" of S&P with a designation of
"negative implications" or "developing", or (ii) the credit rating of the Series
G Senior Notes by Moody's shall be on the "Corporate Credit Watch List" of
Moody's with a designation of "downgrade" or "uncertain", or, in each case, on
any successor list of S&P or Moody's with a comparable designation, the
Prevailing Ratings of the Series G Senior Notes shall be deemed to be within a
range one full level lower in the above table than those actually assigned to
the Series G Senior Notes by S&P and Moody's and (B) if the Series G Senior
Notes are rated by only one rating agency prior to or on the Remarketing Date,
the Prevailing Rating shall at all times be determined without reference to the
rating of any other rating agency; provided that if no such rating agency shall
have in effect a rating for the Series G Senior Notes and the Remarketing Agent
is unable to identify a substitute rating agency or rating agencies, the
Prevailing Rating shall be below BBB/"Baa2".

                                       6
<PAGE>

     The Series G Senior Notes shall not be entitled to any sinking fund and
shall not be redeemable prior to Stated Maturity.

     If an Event of Default with respect to Series G Senior Notes shall occur
and be continuing, the principal of the Series G Senior Notes may be declared
due and payable in the manner and with the effect provided in the Indenture.

     The Series G Senior Notes owned by each Holder of a Corporate PIES that
does not effect a Cash Settlement shall be remarketed by the Remarketing Agent
on the Remarketing Date pursuant to the Remarketing Procedures (as such term is
defined in the Remarketing Agreement) (the "Remarketing"). The Series G Senior
Notes not owned as part of a Corporate PIES shall also be remarketed in the
Remarketing if the Holders so elect.

     So long as the Corporate PIES, Treasury PIES or the Series G Senior Notes
are evidenced by one or more global security certificates deposited with the
Depositary, the Company shall request, not later than 15 nor more than 30
calendar days prior to the Remarketing Date, that the Depositary notify,
directly or indirectly, each beneficial owner of a Corporate PIES and each
beneficial owner of a Series G Senior Note not a part of a Corporate PIES of the
Remarketing and of the procedures that must be followed in connection with the
Remarketing.

     Under Section 5.4 of the Purchase Contract Agreement, dated as of October
12, 2000 (the "Purchase Contract Agreement"), between the Company and The Chase
Manhattan Bank, as Purchase Contract Agent, Holders of Corporate PIES that do
not give notice of their intention to make a Cash Settlement of the related
Purchase Contracts prior to 5:00 p.m. (New York City time) on the seventh
Business Day immediately preceding the Purchase Contract Settlement Date
pursuant to Section 5.4(a)(i) thereof, or that give such notice but fail to make
such payment prior to 11:00 a.m. (New York City time) on the fifth Business Day
immediately preceding the Purchase Contract Settlement Date as required by
Section 5.4(a)(ii) thereof, shall be deemed to have consented to the disposition
of the Pledged Series G Senior Notes pursuant to the Remarketing. Each Holder of
a Series G Senior Note not a part of the Corporate PIES may elect to have all or
a portion of its Series G Senior Notes (in denominations of $50 or integral
multiples thereof) remarketed by notifying the Trustee of the aggregate
principal amount of Series G Senior Notes that it wishes to have remarketed
prior to 11:00 a.m. (New York City time) on the fifth Business Day immediately
preceding the Purchase Contract Settlement Date. Any such notice shall be
irrevocable and may not be conditioned upon the level at which the Reset Rate is
established in the Remarketing.

     Promptly after 11:00 a.m. (New York City time) on the fifth Business Day
preceding the Purchase Contract Settlement Date, the Trustee shall notify the
Remarketing Agent, the Company, the Collateral Agent and the Purchase Contract
Agent of the aggregate principal amount of Series G Senior Notes to be tendered
for purchase in the Remarketing on the basis of the elections referred to in the
last sentence of the foregoing paragraph.

     The right of each Holder of Series G Senior Notes to have its Series G
Senior Notes tendered for purchase will be limited to the extent that (i) the
Remarketing Agent conducts a Remarketing pursuant to the terms of the
Remarketing Agreement, (ii) the Remarketing Agent is able to find a purchaser or
purchasers for the tendered Series G Senior Notes and (iii) such purchaser or
purchasers deliver the purchase price therefor to the Remarketing Agent.

                                       7
<PAGE>

     On the Remarketing Date, the Remarketing Agent shall use reasonable efforts
to remarket, at a price at least equal to 100.25% of the principal amount of a
Series G Senior Note (the "Principal Amount"), the Series G Senior Notes
tendered or deemed tendered for purchase.

     The Remarketing Agent shall on the Remarketing Date set the Reset Rate at a
rate per annum (rounded to the nearest one-thousandth of one percent per annum)
that the Remarketing Agent determines to be the lowest rate per annum that will
enable it to remarket all of the Series G Senior Notes tendered or deemed
tendered for purchase at a price equal to 100.25% of the Principal Amount.

     Upon receipt of the proceeds from the Remarketing, the Remarketing Agent
shall:

     (x) retain an amount equal to 25 basis points (0.25%) of the Principal
Amount for the performance of its services as Remarketing Agent;

     (y) remit to the Collateral Agent all excess proceeds of the Series G
Senior Notes subject to the Pledge Agreement that were remarketed; and

     (z) remit to the Holders all excess proceeds of the Series G Senior Notes
not subject to the Pledge Agreement that were remarketed.

     If none of the Holders of Series G Senior Notes elects, or is deemed to
have elected, to have their Series G Senior Notes remarketed in the Remarketing,
the Remarketing Agent in its sole discretion, after consultation with the
Company, shall determine the rate that would have been established had a
Remarketing been held on the Remarketing Date, and such rate shall be the Reset
Rate. By approximately 4:30 p.m. (New York City time) on the Remarketing Date,
the Remarketing Agent shall advise by telephone (promptly confirmed in writing)
the Depositary, the Trustee and the Company of such Reset Rate.

     If, by 4:00 p.m. (New York City time) on the Remarketing Date, the
Remarketing Agent is unable to remarket all of the Series G Senior Notes
tendered or deemed tendered for purchase, for any reason, a failed Remarketing
("Failed Remarketing") shall be deemed to have occurred, and the Remarketing
Agent shall so advise by telephone (promptly confirmed in writing) the
Depositary, the Trustee, the Purchase Contract Agent and the Company.

     Provided that there has not been a Failed Remarketing, by approximately
4:30 p.m. (New York City time) on the Remarketing Date, the Remarketing Agent
shall advise, by telephone (promptly confirmed in writing in the case of clause
(A)):

     (A) the Depositary, the Trustee and the Company of the Reset Rate
determined in the Remarketing and the aggregate principal amount of Series G
Senior Notes sold in the Remarketing;

     (B) each purchaser (or the Depositary participant thereof) of Series G
Senior Notes in the Remarketing of the Reset Rate and the aggregate principal
amount of Series G Senior Notes such purchaser is to purchase; and

     (C) each purchaser to give instructions to the Depositary participant to
pay the purchase price on the Purchase Contract Settlement Date in immediately
available funds against delivery of the Series G Senior Notes purchased through
the facilities of the Depositary.

                                       8
<PAGE>

     In the case of a Failed Remarketing, by approximately 4:30 p.m. (New York
City time) on the Remarketing Date, the Remarketing Agent shall advise by
telephone (promptly confirmed in writing) the Depositary, the Trustee and the
Company of the Reset Rate.

     The Remarketing Agent's calculation of the Reset Rate shall be conclusive
and binding and the Trustee shall have no responsibility for the calculation
thereof.

     In accordance with the Depositary's normal procedures, on the Purchase
Contract Settlement Date, the transactions described above with respect to each
Series G Senior Note tendered for purchase and sold in the Remarketing shall be
executed through the Depositary, and the accounts of the respective Depositary
participants shall be debited and credited and such Series G Senior Notes
delivered by book entry as necessary to effect purchases and sales of such
Series G Senior Notes. The Depositary shall make payment in accordance with its
normal procedures.

     If any Holder of Series G Senior Notes selling Series G Senior Notes in the
Remarketing fails to deliver such Series G Senior Notes, the direct or indirect
Depositary participant of such selling Holder and of any other Person who was to
have purchased Series G Senior Notes in the Remarketing may deliver to any such
other Person an aggregate principal amount of Series G Senior Notes that is less
than the aggregate principal amount of Series G Senior Notes that otherwise was
to be purchased by such Person. In such event, the aggregate principal amount of
Series G Senior Notes to be so delivered shall be determined by such direct or
indirect Depositary participant, and delivery of such lesser aggregate principal
amount of Series G Senior Notes shall constitute good delivery.

     The Remarketing Agent is not obligated to purchase any Series G Senior
Notes that otherwise would remain unsold in the Remarketing. Neither the Company
nor the Remarketing Agent shall be obligated in any case to provide funds to
make payment upon tender of the Series G Senior Notes for Remarketing.

     Under the Remarketing Agreement, the Company, in its capacity as issuer of
the Series G Senior Notes, shall be liable for, and shall pay, any and all costs
and expenses incurred in connection with the Remarketing, other than the
Remarketing Fee.

     The tender and settlement procedures set forth herein, including provisions
for payment by purchasers of the Series G 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 Series G Senior Notes at the
time of the Remarketing, to facilitate the tendering and remarketing of the
Series G Senior Notes in certificated form. In addition, the Remarketing Agent
may modify the settlement procedures set forth herein in order to facilitate the
settlement process.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected.  The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive certain past defaults under
the Indenture and their consequences.  Any such consent or waiver by the Holder
of this Series

                                       9
<PAGE>

G Senior Note shall be conclusive and binding upon such Holder and upon all
future Holders of this Series G Senior Note and of any Series G Senior Note
issued upon the registration of transfer hereof or in exchange therefor or in
lieu hereof, whether or not notation of such consent or waiver is made upon this
Series G Senior Note.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Series G Senior Note shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver or
trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default
with respect to the Series G Senior Notes, the Holders of not less than a
majority in principal amount of the Series G Senior Notes at the time
Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from the
Holders of a majority in principal amount of Series G Senior Notes at the time
Outstanding a direction inconsistent with such request, and shall have failed to
institute any such proceeding for 60 days after receipt of such notice, request
and offer of indemnity.  The foregoing shall not apply to any suit instituted by
the Holder of this Series G Senior Note for the enforcement of any payment of
principal hereof or premium, if any, or interest hereon on or after the
respective due dates expressed or provided for herein.

     No reference herein to the Indenture and no provision of this Series G
Senior Note or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of, premium,
if any, and interest on this Series G Senior Note at the times, place and rate,
and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Series G Senior Note is registrable in the Security
Register, upon surrender of this Series G Senior Note for registration of
transfer at the office or agency of the Company in any place where the principal
of, premium, if any, and interest on this Series G Senior Note are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Series G Senior Notes and of like tenor, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Series G Senior Notes are issuable only in registered form without
coupons in denominations of $50 and any integral multiple thereof.  As provided
in the Indenture and subject to certain limitations therein set forth, Series G
Senior Notes are exchangeable for a like aggregate principal amount of Series G
Senior Notes having the same Stated Maturity and of like tenor of any authorized
denominations as requested by the Holder upon surrender of the Series G Senior
Note or Series G Senior Notes to be exchanged at the office or agency of the
Company.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     Prior to due presentment of this Series G Senior Note for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Series G

                                      10
<PAGE>

Senior Note be overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.

     All terms used in this Series G Senior Note that are defined in the
Indenture or the Purchase Contract Agreement, as the case may be, shall have the
meanings assigned to them in the Indenture or the Purchase Contract Agreement,
as the case may be and as the context may require.

                                      11
<PAGE>

                                 ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM -                as tenants in common

TEN ENT -                as tenants by the entireties

JT TEN -                 as joint tenants with rights of survivorship and not as
                         tenants in common

UNIF GIFT MIN ACT -      ________________________________ Custodian for
                         (Cust)

                         ________________________________
                         (Minor)

                         Under Uniform Gifts to Minors Act of

                         ________________________________
                         (State)

Additional abbreviations may also be used though not on the above list.

______________________________________________________________

                                      12
<PAGE>

     FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

_______________________________________________________________________________.

    (please insert Social Security or other identifying number of assignee)

_______________________________________________________________________________.

_______________________________________________________________________________.

_______________________________________________________________________________.

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF
ASSIGNEE

the within Series G Senior Note and all rights thereunder, hereby irrevocably
constituting and appointing

_______________________________________________________________________________.

_______________________________________________________________________________.

_______________________________________________________________________________.

_______________________________________________________________________________.

_______________________________________________________________________________.

_______________________________________________________________________________.

agent to transfer said Series G Senior Note on the books of the Company, with
full power of substitution in the premises.

Dated: __________________ __, ____

                                               _________________________________

NOTICE:  The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular without
alteration or enlargement, or any change whatever.

                                      13
<PAGE>

       [TO BE ATTACHED TO GLOBAL CERTIFICATES AND PLEDGED SENIOR NOTES]

                      SCHEDULE OF INCREASES OR DECREASES

          The following increases or decreases in this [Global
Certificate][Pledged Senior Note] have been made:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
                                                                        Principal amount
                        Amount of decrease       Amount of increase    of Series G Senior
                        in principal amount     in principal amount    Notes evidenced by
                        of Series G Senior      of Series G Senior         the [Global            Signature of
                        Notes evidenced by      Notes evidenced by     Certificate][Pledged    authorized officer
                            the [Global              the [Global           Senior Note]           of Trustee or
                        Certificate][Pledged     Certificate][Pledged      following such           Securities
     Date                   Senior Note]             Senior Note]      decrease or increase         Custodian
---------------------------------------------------------------------------------------------------------------------
<S>                     <C>                     <C>                    <C>                     <C>
---------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      14
<PAGE>

                                                                      MWBB DRAFT
                                                                October 10, 2000

                                   EXHIBIT B
                         CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.

                              THE CHASE MANHATTAN BANK,
                              as Trustee

                              By: ________________________________
                                  Authorized Officer<PAGE>

                                                                     EXHIBIT 4.3

================================================================================

                           DOMINION RESOURCES, INC.

                                      and

                           THE CHASE MANHATTAN BANK,

                          As Purchase Contract Agent

                          __________________________

                          PURCHASE CONTRACT AGREEMENT

                         Dated as of October 12, 2000

================================================================================
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>                                                                           Page
                                   ARTICLE I

           Definitions and Other Provisions of General Applications

<S>                                                                                 <C>
Section 1.1.   Definitions..........................................................   1
Section 1.2.   Compliance Certificates and Opinions.................................  10
Section 1.3.   Form of Documents Delivered to Purchase Contract Agent...............  11
Section 1.4.   Acts of Holders; Record Dates........................................  11
Section 1.5.   Notices..............................................................  13
Section 1.6.   Notice to Holders; Waiver............................................  13
Section 1.7.   Effect of Headings and Table of Contents.............................  14
Section 1.8.   Successors and Assigns...............................................  14
Section 1.9.   Separability Clause..................................................  14
Section 1.10.  Benefits of Agreement................................................  14
Section 1.11.  Governing Law........................................................  14
Section 1.12.  Legal Holidays.......................................................  14
Section 1.13.  Counterparts.........................................................  15
Section 1.14.  Inspection of Agreement..............................................  15

                                  ARTICLE II

                               Certificate Forms

Section 2.1.   Forms of Certificates Generally......................................  15
Section 2.2.   Form of Purchase Contract Agent's Certificate of Authentication......  16

                                  ARTICLE III

                                The Securities

Section 3.1.   Amount; Form and Denominations.......................................  16
Section 3.2.   Rights and Obligations Evidenced by the Certificates.................  17
Section 3.3.   Execution, Authentication, Delivery and Dating.......................  17
Section 3.4.   Temporary Certificates...............................................  18
Section 3.5.   Registration; Registration of Transfer and Exchange..................  19
Section 3.6.   Book-Entry Interests.................................................  20
Section 3.7.   Notices to Holders...................................................  20
Section 3.8.   Appointment of Successor Clearing Agency.............................  21
Section 3.9.   Definitive Certificates..............................................  21
Section 3.10.  Mutilated, Destroyed, Lost and Stolen Certificates...................  21
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                    <C>
Section 3.11.  Persons Deemed Owners.................................................  22
Section 3.12.  Cancellation..........................................................  23
Section 3.13.  Creation of Treasury PIES by Substitution of Treasury Securities......  23
Section 3.14.  Reestablishment of Corporate PIES.....................................  24
Section 3.15.  Transfer of Collateral upon Occurrence of Termination Event...........  25
Section 3.16.  No Consent to Assumption..............................................  26

                                  ARTICLE IV

                               The Senior Notes

Section 4.1.   Interest Payments; Rights to Interest Preserved.......................  27
Section 4.2.   Interest Rate Reset...................................................  27
Section 4.3.   Notice and Voting.....................................................  28

                                   ARTICLE V

                            The Purchase Contracts

Section 5.1.   Purchase of Shares of Common Stock....................................  28
Section 5.2.   Contract Adjustment Payments..........................................  30
Section 5.3.   [Intentionally omitted.]..............................................  31
Section 5.4.   Payment of Purchase Price.............................................  31
Section 5.5.   Issuance of Shares of Common Stock....................................  35
Section 5.6.   Adjustment of Settlement Rate.........................................  36
Section 5.7.   Notice of Adjustments and Certain Other Events........................  42
Section 5.8.   Termination Event; Notice.............................................  42
Section 5.9.   Early Settlement......................................................  43
Section 5.10.  No Fractional Shares..................................................  45
Section 5.11.  Charges and Taxes.....................................................  45

                                  ARTICLE VI

                                   Remedies

Section 6.1.   Unconditional Right of Holders to Receive Contract Adjustment Payments
               and to Purchase Shares of Common Stock................................  45
Section 6.2.   Restoration of Rights and Remedies....................................  46
Section 6.3.   Rights and Remedies Cumulative........................................  46
Section 6.4.   Delay or Omission Not Waiver..........................................  46
Section 6.5.   Undertaking for Costs.................................................  46
Section 6.6.   Waiver of Stay or Extension Laws......................................  47
</TABLE>

                                      ii
<PAGE>

<TABLE>
<CAPTION>
                                  ARTICLE VII

                          The Purchase Contract Agent
<S>                                                                              <C>
Section 7.1.    Certain Duties and Responsibilities.............................  47
Section 7.2.    Notice of Default...............................................  48
Section 7.3.    Certain Rights of Purchase Contract Agent.......................  48
Section 7.4.    Not Responsible for Recitals or Issuance of Securities..........  49
Section 7.5.    May Hold Securities.............................................  49
Section 7.6.    Money Held in Custody...........................................  49
Section 7.7.    Compensation and Reimbursement..................................  49
Section 7.8.    Corporate Purchase Contract Agent Required; Eligibility.........  50
Section 7.9.    Resignation and Removal; Appointment of Successor...............  50
Section 7.10.   Acceptance of Appointment by Successor..........................  51
Section 7.11.   Merger, Conversion, Consolidation or Succession to Business.....  52
Section 7.12.   Preservation of Information; Communications to Holders..........  52
Section 7.13.   No Obligations of Purchase Contract Agent.......................  52
Section 7.14.   Tax Compliance..................................................  53

                                 ARTICLE VIII

                            Supplemental Agreements

Section 8.1.    Supplemental Agreements Without Consent of Holders..............  53
Section 8.2.    Supplemental Agreements With Consent of Holders.................  54
Section 8.3.    Execution of Supplemental Agreements............................  55
Section 8.4.    Effect of Supplemental Agreements...............................  55
Section 8.5.    Reference to Supplemental Agreements............................  55

                                  ARTICLE IX

           Merger, Consolidation, Share Exchange, Sale or Conveyance

Section 9.1.    Covenant Not to Merge, Consolidate, Enter into a Share
                Exchange, Sell or Convey Property Except Under Certain
                Conditions......................................................  55
Section 9.2.    Rights and Duties of Successor Corporation......................  56
Section 9.3.    Officers' Certificate and Opinion of Counsel Given to Purchase
                Contract Agent..................................................  56

                                   ARTICLE X

                                   Covenants

Section 10.1.   Performance Under Purchase Contracts............................  57
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>            <C>                                                       <C>
Section 10.2.  Maintenance of Office or Agency...........................  57
Section 10.3.  Company to Reserve Common Stock...........................  57
Section 10.4.  Covenants as to Common Stock..............................  58
Section 10.5.  Statements of Officers of the Company as to Default.......  58
Section 10.6.  ERISA.....................................................  58
</TABLE>

                                   EXHIBITS

EXHIBIT A        Form of Corporate PIES Certificate
EXHIBIT B        Form of Treasury PIES Certificate
EXHIBIT C        Instruction to Purchase Contract Agent
EXHIBIT D        Notice from Purchase Contract Agent to Holders
                 (Transfer of Collateral upon Occurrence of a Termination Event)
EXHIBIT E        Notice to Settle by Cash
EXHIBIT F        Notice from Purchase Contract Agent to Collateral Agent and
                 Indenture Trustee (Settlement of Purchase Contract through
                 Remarketing)
EXHIBIT G        Notice from Holder to Indenture Trustee
                 (Election to Tender for Purchase Senior Notes in the
                 Remarketing)

                                      iv
<PAGE>

              PURCHASE CONTRACT AGREEMENT, dated as of October 12, 2000, between
DOMINION RESOURCES, INC., a Virginia corporation (the "Company"), and THE CHASE
MANHATTAN BANK, a New York banking corporation, acting as purchase contract
agent for the Holders of Securities from time to time (the "Purchase Contract
Agent").

                                   RECITALS

              The Company has duly authorized the execution and delivery of this
Agreement and the Certificates evidencing the Securities.

              All things necessary to make the Purchase Contracts, when the
Certificates are executed by the Company and authenticated, executed on behalf
of the Holders and delivered by the Purchase Contract Agent, as provided in this
Agreement, the valid obligations of the Company, and to constitute these
presents a valid agreement of the Company, in accordance with its terms, have
been done.

              For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually agreed as follows:

                                   ARTICLE I

                       Definitions and Other Provisions
                            of General Applications

Section 1.1.  Definitions.

              For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires:

              (a) the terms defined in this Article have the meanings assigned
to them in this Article and include the plural as well as the singular, and
nouns and pronouns of the masculine gender include the feminine and neuter
genders;

              (b) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles in the United States;

              (c) the words "herein," "hereof" and "hereunder" and other words
of similar import refer to this Agreement as a whole and not to any particular
Article, Section, Exhibit or other subdivision;

              (d) the following terms have the meanings given to them in this
Section 1.1(d):

              "Act," when used with respect to any Holder, has the meaning
specified in Section 1.4.

              "Adjusted Contract Adjustment Payment Rate" means, with respect to
any Reset Transaction, the rate per annum that is the arithmetic average of the
rates quoted by two Reference Dealers selected by the Company as the rate at
which Contract Adjustment Payments should accrue so that the fair market value,
expressed in dollars, of a Corporate PIES immediately after the later of
<PAGE>

                                                                               2

(i) public announcement of such Reset Transaction or (ii) public announcement of
a change in dividend policy in connection with such Reset Transaction will equal
the average Trading Price of a Corporate PIES for the 20 Trading Days
immediately preceding the date of public announcement of such Reset Transaction;
provided that the Adjusted Contract Adjustment Payment Rate shall not be less
than 1.45% per annum.

              "Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

              "Agreement" means this instrument as originally executed or as it
may from time to time be supplemented or amended by one or more agreements
supplemental hereto entered into pursuant to the applicable provisions hereof.

              "Applicable Market Value" has the meaning set forth in Section
5.1.

              "applicants" has the meaning set forth in Section 7.12(b).

              "Bankruptcy Code" means title 11 of the United States Code, or any
other law of the United States that from time to time provides a uniform system
of bankruptcy laws.

              "Beneficial Owner" means, with respect to a Book-Entry Interest, a
Person who is the beneficial owner of such Book-Entry Interest as reflected on
the books of the Clearing Agency or on the books of a Person maintaining an
account with such Clearing Agency (directly as a Clearing Agency Participant or
as an indirect participant, in each case in accordance with the rules of such
Clearing Agency).

              "Board of Directors" means the board of directors of the Company
or a duly authorized committee of that board.

              "Board Resolution" means one or more resolutions of the Board of
Directors, a copy of each of which has been certified by the Secretary or an
Assistant Secretary of the Company, to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification
and delivered to the Purchase Contract Agent.

              "Book-Entry Interest" means a beneficial interest in a Global
Certificate, ownership and transfers of which shall be maintained and made
through book entries by a Clearing Agency as described in Section 3.6.

              "Business Day" means any day other than (i) a Saturday or Sunday
or a day on which banking institutions in The City of New York are authorized or
required by law or executive order to remain closed or (ii) a day on which the
Indenture Trustee is closed for business; provided that for purposes of the
second paragraph of Section 1.12 only, the term "Business Day" shall also be
deemed to exclude any day on which trading on the New York Stock Exchange, Inc.
is closed or suspended.
<PAGE>

                                                                               3

              "Cash Settlement" has the meaning set forth in Section 5.4(a)(i).

              "Certificate" means a Corporate PIES Certificate or a Treasury
PIES Certificate.

              "Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act that is acting as a
depositary for the Securities and in whose name, or in the name of a nominee of
that organization, shall be registered a Global Certificate and which shall
undertake to effect book entry transfers and pledges of the Securities.

              "Clearing Agency Participant" means a broker, dealer, bank, other
financial institution or other Person for whom from time to time the Clearing
Agency effects book entry transfers and pledges of securities deposited with the
Clearing Agency.

              "Closing Price" has the meaning set forth in Section 5.1.

              "Code" means the Internal Revenue Code of 1986, as amended.

              "Collateral" has the meaning set forth in Section 1 of the Pledge
Agreement.

              "Collateral Account" has the meaning set forth in Section 1 of the
Pledge Agreement.

              "Collateral Agent" means Bank One Trust Company, N.A., as
Collateral Agent under the Pledge Agreement until a successor Collateral Agent
shall have become such pursuant to the applicable provisions of the Pledge
Agreement, and thereafter "Collateral Agent" shall mean the Person who is then
the Collateral Agent thereunder.

              "Collateral Substitution" has the meaning set forth in Section
3.13.

              "Common Stock" means the Common Stock, no par value per share, of
the Company.

              "Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor shall have become such pursuant
to the applicable provision of this Agreement, and thereafter "Company" shall
mean such successor.

              "Constituent Person" has the meaning set forth in Section 5.6(b).

              "Contract Adjustment Payments" means the payments payable by the
Company on the Payment Dates in respect of each Purchase Contract, equal to (a)
if a Reset Transaction has not occurred, 1.45% per annum of the Stated Amount or
(b) following the occurrence of a Reset Transaction, the Adjusted Contract
Adjustment Payment Rate related to such Reset Transaction until any succeeding
Reset Transaction shall occur, in either case computed (i) for any full
quarterly period on the basis of a 360-day year of twelve 30-day months, (ii)
for any period shorter than a full quarterly period for which such payments are
calculated, on the basis of a 30-day month and (iii) for periods of less than a
month, the actual number of days elapsed per 30-day month.

              "Corporate PIES" means the collective rights and obligations of a
Holder of a Corporate PIES Certificate in respect of the Senior Notes, subject
to the Pledge thereof, and the related Purchase Contract.
<PAGE>

                                                                               4

          "Corporate PIES Certificate" means a certificate evidencing the rights
and obligations of a Holder in respect of the number of Corporate PIES specified
on such certificate.

          "Corporate PIES Register" and "Corporate PIES Registrar" have the
respective meanings specified in Section 3.5.

          "Corporate Trust Office" means the office of the Purchase Contract
Agent at which, at any particular time, its corporate trust business shall be
principally administered, which office at the date hereof is located at 450 West
33/rd/ Street, 15/th/ Floor, New York, New York 10001-2697, Attention: Capital
Markets Fiduciary Services.

          "Coupon Rate" means the percentage rate per annum at which each Senior
Note will bear interest initially.

          "Current Market Price" has the meaning specified in Section 5.6(a)(8).

          "Depositary" means DTC until another Clearing Agency becomes its
successor.

          "Dividend Yield" means, with respect to any security for any period,
the dividends paid or proposed to be paid pursuant to an announced dividend
policy on such security for such period divided by, if with respect to dividends
paid on such security, the average Closing Price of such security during such
period and, if with respect to dividends so proposed to be paid on such
security, the Closing Price of such security on the effective date of the
related Reset Transaction.

          "DTC" means The Depository Trust Company, the initial Clearing Agency.

          "Early Settlement" has the meaning set forth in Section 5.9(a).

          "Early Settlement Amount" has the meaning set forth in Section 5.9(a).

          "Early Settlement Date" has the meaning set forth in Section 5.9(a).

          "Early Settlement Rate" has the meaning set forth in Section 5.9(b).

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

          "Exchange Act" means the Securities Exchange Act of 1934 and any
statute successor thereto, in each case as amended from time to time, and the
rules and regulations promulgated thereunder.

          "Expiration Date" has the meaning set forth in Section 1.4(e).

          "Expiration Time" has the meaning set forth in Section 5.6(a)(6).

          "Failed Remarketing" has the meaning set forth in Section 5.4(b).

          "Global Certificate" means a Certificate that evidences all or part of
the Securities and is registered in the name of a Clearing Agency or a nominee
thereof.
<PAGE>

                                                                               5

          "Holder" means, with respect to a Security, the Person in whose name
the Security evidenced by a Corporate PIES Certificate and/or a Treasury PIES
Certificate is registered in the related Corporate PIES Register and/or the
Treasury PIES Register, as the case may be; provided, however, that in
determining whether the Holders of the requisite number of Corporate PIES and/or
Treasury PIES have Acted on any matter, then for the purpose of such
determination only (and not for any other purpose hereunder), if the Security
remains in the form of one or more Global Certificates and if the Clearing
Agency which is the holder of such Global Certificate has sent an omnibus proxy
assigning voting rights to the Clearing Agency Participants to whose accounts
the Securities are credited on the applicable record date, the term "Holder"
shall mean such Clearing Agency Participant acting at the direction of the
Beneficial Owners.

          "Indenture" means the Senior Indenture, dated as of June 1, 2000,
between the Company and the Indenture Trustee, as amended and supplemented
(including any provisions of the TIA that are deemed incorporated therein and
including the Supplemental Indenture), pursuant to which the Senior Notes will
be issued.

          "Indenture Trustee" means The Chase Manhattan Bank, a New York banking
corporation, as trustee under the Indenture, or any successor thereto.

          "Issuer Order" or "Issuer Request" means a written request or order
signed in the name of the Company by (i) either its Chief Executive Officer, its
President or one of its Vice Presidents and (ii) either its Corporate Secretary
or one of its Assistant Corporate Secretaries or its Treasurer or one of its
Assistant Treasurers, and delivered to the Purchase Contract Agent.

          "non-electing share" has the meaning set forth in Section 5.6(b).

          "NYSE" has the meaning set forth in Section 5.1.

          "Officers' Certificate" means a certificate signed by (i) either the
Chief Executive Officer, the President or one of the Vice Presidents and (ii)
either the Corporate Secretary or one of the Assistant Corporate Secretaries or
the Treasurer or one of the Assistant Treasurers, of the Company, and delivered
to the Purchase Contract Agent.

          "Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company (and who may be an employee of the Company), and who
shall be reasonably acceptable to the Purchase Contract Agent.

          "Outstanding Securities" means, with respect to any Corporate PIES or
Treasury PIES and as of the date of determination, all Corporate PIES or
Treasury PIES evidenced by Certificates theretofore authenticated, executed and
delivered under this Agreement, except:

          (1) If a Termination Event has occurred, (i) Treasury PIES and (ii)
     Corporate PIES for which the underlying Senior Notes have been theretofore
     deposited with the Purchase Contract Agent in trust for the Holders of such
     Corporate PIES;

          (2) Corporate PIES and Treasury PIES evidenced by Certificates
     theretofore cancelled by the Purchase Contract Agent or delivered to the
     Purchase Contract Agent for cancellation or deemed cancelled pursuant to
     the provisions of this Agreement; and
<PAGE>

                                                                               6

          (3) Corporate PIES and Treasury PIES evidenced by Certificates in
     exchange for or in lieu of which other Certificates have been
     authenticated, executed on behalf of the Holder and delivered pursuant to
     this Agreement, other than any such Certificate in respect of which there
     shall have been presented to the Purchase Contract Agent proof satisfactory
     to it that such Certificate is held by a bona fide purchaser in whose hands
     the Corporate PIES or Treasury PIES evidenced by such Certificate are valid
     obligations of the Company;

provided, however, that in determining whether the Holders of the requisite
number of the Corporate PIES or Treasury PIES have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Corporate PIES or
Treasury PIES owned by the Company or any Affiliate of the Company shall be
disregarded and deemed not to be Outstanding Securities, except that, in
determining whether the Purchase Contract Agent shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Corporate PIES or Treasury PIES which a Responsible Officer of the
Purchase Contract Agent knows to be so owned shall be so disregarded. Corporate
PIES or Treasury PIES so owned which have been pledged in good faith may be
regarded as Outstanding Securities if the pledgee establishes to the
satisfaction of the Purchase Contract Agent the pledgee's right so to act with
respect to such Corporate PIES or Treasury PIES and that the pledgee is not the
Company or any Affiliate of the Company.

          "Payment Date" means each February 15, May 15, August 15 and November
15, commencing February 15, 2001.

          "Permitted Investments" has the meaning set forth in Section 1 of the
Pledge Agreement.

          "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint-stock company, limited
liability company, trust, unincorporated organization or government or any
agency or political subdivision thereof or any other entity of whatever nature.

          "PIES" means the collective reference to the Corporate PIES and the
Treasury PIES.

          "Plan" means an employee benefit plan that is subject to ERISA, a plan
or individual retirement account that is subject to Section 4975 of the Code or
any entity whose assets are considered assets of any such plan.

          "Pledge" means the pledge under the Pledge Agreement of the Senior
Notes or the Treasury Securities, in each case constituting a part of the
Securities.

          "Pledge Agreement" means the Pledge Agreement, dated as of the date
hereof, by and among the Company, the Collateral Agent, the Securities
Intermediary and the Purchase Contract Agent, on its own behalf and as attorney-
in-fact for the Holders from time to time of the Securities.

          "Pledged Senior Notes" has the meaning set forth in Section 1 of the
Pledge Agreement.

          "Pledged Treasury Securities" has the meaning set forth in Section 1
of the Pledge Agreement.
<PAGE>

                                                                               7

          "Predecessor Certificate" means a Predecessor Corporate PIES
Certificate or a Predecessor Treasury PIES Certificate.

          "Predecessor Corporate PIES Certificate" of any particular Corporate
PIES Certificate means every previous Corporate PIES Certificate evidencing all
or a portion of the rights and obligations of the Company and the Holder under
the Corporate PIES evidenced thereby; and, for the purposes of this definition,
any Corporate PIES Certificate authenticated and delivered under Section 3.10 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Corporate PIES
Certificate shall be deemed to evidence the same rights and obligations of the
Company and the Holder as the mutilated, destroyed, lost or stolen Corporate
PIES Certificate.

          "Predecessor Treasury PIES Certificate" of any particular Treasury
PIES Certificate means every previous Treasury PIES Certificate evidencing all
or a portion of the rights and obligations of the Company and the Holder under
the Treasury PIES evidenced thereby; and, for the purposes of this definition,
any Treasury PIES Certificate authenticated and delivered under Section 3.10 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Treasury PIES
Certificate shall be deemed to evidence the same rights and obligations of the
Company and the Holder as the mutilated, destroyed, lost or stolen Treasury PIES
Certificate.

          "Proceeds" has the meaning set forth in Section 1 of the Pledge
Agreement.

          "Purchase Contract" means, with respect to any Security, the contract
forming a part of such Security and obligating the Company to (i) sell, and the
Holder of such Security to purchase, shares of Common Stock and (ii) pay the
Holder Contract Adjustment Payments in each case on the terms and subject to the
conditions set forth in Article Five hereof.

          "Purchase Contract Agent" means the Person named as the "Purchase
Contract Agent" in the first paragraph of this instrument until a successor
Purchase Contract Agent shall have become such pursuant to the applicable
provisions of this Agreement, and thereafter "Purchase Contract Agent" shall
mean such Person.

          "Purchase Contract Settlement Date" means November 16, 2004.

          "Purchase Contract Settlement Fund" has the meaning set forth in
Section 5.5.

          "Purchase Price" has the meaning set forth in Section 5.1.

          "Purchased Shares" has the meaning set forth in Section 5.6(a)(6).

          "Record Date" for the Contract Adjustment Payments payable on any
Payment Date means, as to any Global Certificate, the Business Day next
preceding such Payment Date, and as to any other Certificate, the fifteenth
Business Day prior to such Payment Date.

          "Reference Dealer" means a dealer engaged in the trading of
convertible securities.

          "Reference Price" has the meaning set forth in Section 5.1.

          "Register" means the Corporate PIES Register and the Treasury PIES
Register.
<PAGE>

                                                                               8

          "Registrar" means the Corporate PIES Registrar and the Treasury PIES
Registrar.

          "Remarketing" has the meaning set forth in the Supplemental Indenture.

          "Remarketing Agent" has the meaning set forth in Section 5.4(b).

          "Remarketing Agreement" means the Remarketing Agreement, dated as of
the date hereof between the Company and the Remarketing Agent.

          "Remarketing Date" means the date, which is the third Business Day
immediately preceding the Purchase Contract Settlement Date, on which the Reset
Rate is determined pursuant to the Remarketing.

          "Remarketing Fee" has the meaning set forth in Section 5.4(b).

          "Reorganization Event" has the meaning set forth in Section 5.6(b).

          "Reset Rate" has the meaning set forth in the Supplemental Indenture.

          "Reset Transaction" means a merger, consolidation or statutory share
exchange to which the Person that is the issuer of the shares of Common Stock
for which the Purchase Contracts are then to be settled is a party, a sale of
all or substantially all assets of such Person, a recapitalization of such
Common Stock or a distribution described in Section 5.6(a)(4) by such Person and
after the effective date of such transaction the Purchase Contracts are then to
be settled for shares of common stock of a Person (i) which had a Dividend Yield
for the four fiscal quarters immediately preceding the public announcement
thereof which was, or (ii) that announces a dividend policy prior to the
effective date thereof which policy, if implemented, would result in a Dividend
Yield on such shares of Common Stock for the next four fiscal quarters which
would be, more than 250 basis points higher than the Dividend Yield on the
shares of Common Stock for which the Purchase Contracts are to be settled prior
to such effective date for the four fiscal quarters immediately preceding such
public announcement.

          "Responsible Officer," when used with respect to the Purchase Contract
Agent, means any officer of the Purchase Contract Agent assigned by the Purchase
Contract Agent to administer its corporate trust matters.

          "Securities Intermediary" means Bank One Trust Company, N.A., as
Securities Intermediary under the Pledge Agreement until a successor Securities
Intermediary shall have become such pursuant to the applicable provisions of the
Pledge Agreement, and thereafter "Securities Intermediary" shall mean such
successor.

          "Security" means a Corporate PIES or a Treasury PIES, as the case may
be.

          "Senior Notes" means the 2000 Series G 8.05% Senior Notes, due
November 15, 2006 to be issued by the Company under the Supplemental Indenture,
each having a minimum denomination of $50 and bearing interest, payable on the
Payment Dates, at the Coupon Rate to, but not including, the Purchase Contract
Settlement Date and at the Reset Rate from and including the Purchase Contract
Settlement Date. Any reference herein to "one Senior Note," "a Senior Note" or
<PAGE>

                                                                               9

"the Senior Note" or any phrase herein having a similar meaning shall be a
reference to a Senior Note in the principal amount of $50.

          "Settlement Rate" has the meaning specified in Section 5.1.

          "Stated Amount" means $50 in cash.

          "Stated Maturity" means, with respect to the Senior Notes, November
15, 2006.

          "Supplemental Indenture" means the Seventh Supplemental Indenture,
dated as of October 1, 2000, between the Company and the Indenture Trustee,
supplementing the Indenture.

          "Termination Date" means the date, if any, on which a Termination
Event occurs.

          "Termination Event" means the occurrence of any of the following
events:

          (1) at any time on or prior to the Purchase Contract Settlement Date,
     a judgment, decree or court order shall have been entered granting relief
     with respect to the Company under the Bankruptcy Code or any other similar
     applicable Federal or State law, adjudicating the Company to be insolvent,
     or approving as properly filed a petition seeking reorganization or
     liquidation of the Company, and, unless such judgment, decree or order
     shall have been entered within 60 days prior to the Purchase Contract
     Settlement Date, such decree or order shall have continued undischarged and
     unstayed for a period of 60 days;

          (2) a judgment, decree or court order for the appointment of a
     receiver or liquidator or trustee or assignee in bankruptcy or insolvency
     of the Company or of its property, or for the winding up or liquidation of
     its affairs, shall have been entered, and, unless such judgment, decree or
     order shall have been entered within 60 days prior to the Purchase Contract
     Settlement Date, such judgment, decree or order shall have continued
     undischarged and unstayed for a period of 60 days; or

          (3) at any time on or prior to the Purchase Contract Settlement Date,
     the Company shall file a petition for relief under the Bankruptcy Code, or
     shall consent to the filing of a bankruptcy proceeding against it, or shall
     file a petition or answer or consent seeking reorganization or liquidation
     of the Company under the Bankruptcy Code or any other similar applicable
     Federal or State law, or shall consent to the filing of any such petition,
     or shall consent to the appointment of a receiver or liquidator or trustee
     or assignee in bankruptcy or insolvency of it or of its property, or shall
     make an assignment for the benefit of its creditors, or shall admit in
     writing its inability to pay its debts generally as they become due.

          "Threshold Appreciation Price" has the meaning set forth in Section
5.1.

          "TIA" means the Trust Indenture Act of 1939, as amended from time to
time, or any successor legislation.

          "Trading Day" has the meaning set forth in Section 5.1.

          "Trading Price" of a security on any date of determination means:
<PAGE>

                                                                              10

              (1) the closing sale price (or, if no closing price is reported,
     the last reported sale price) of a security (regular way) on the NYSE on
     such date,

              (2) if such security is not listed for trading on the NYSE on any
     such date, the closing sale price as reported in the composite transactions
     for the principal United States securities exchange on which such security
     is so listed,

              (3) if such security is not so listed on a United States national
     or regional securities exchange, the closing sale price as reported by the
     NASDAQ Stock Market,

              (4) if such security is not so reported, the price quoted by
     Interactive Data Corporation for such security or, if Interactive Data
     Corporation is not quoting such price, a similar quotation service selected
     by the Company,

              (5) if such security is not so quoted, the average of the mid-
     point of the last bid and ask prices for such security from at least two
     dealers recognized as market-makers for such security, or

              (6) if such security is not so quoted, the average of the last bid
     and ask prices for such security from a Reference Dealer.

              "Treasury PIES" means, following the substitution of Treasury
Securities for Senior Notes as collateral to secure a Holder's obligations under
a Purchase Contract, the collective rights and obligations of a Holder of a
Treasury PIES Certificate in respect of such Treasury Securities, subject to the
Pledge thereof, and the related Purchase Contract.

              "Treasury PIES Certificate" means a certificate evidencing the
rights and obligations of a Holder in respect of the number of Treasury PIES
specified on such certificate.

              "Treasury PIES Register" and "Treasury PIES Registrar" have the
respective meanings set forth in Section 3.5.

              "Treasury Security" means a zero-coupon U.S. Treasury Security
which has a principal amount at maturity of $1,000 and which matures on or prior
to November 15, 2004.

              "Underwriters" means Lehman Brothers Inc., Banc of America
Securities LLC, Credit Suisse First Boston Corporation, Merrill Lynch, Pierce,
Fenner & Smith Incorporated and Morgan Stanley & Co. Incorporated, collectively.

Section 1.2.  Compliance Certificates and Opinions.

              Except as otherwise expressly provided by this Agreement, upon any
application or request by the Company to the Purchase Contract Agent to take any
action in accordance with any provision of this Agreement, the Company shall
furnish to the Purchase Contract Agent an Officers' Certificate stating that all
conditions precedent, if any, provided for in this Agreement relating to the
proposed action have been complied with and, if requested by the Purchase
Contract Agent, an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the
<PAGE>

                                                                              11

furnishing of such documents is specifically required by any provision of this
Agreement relating to such particular application or request, no additional
certificate or opinion need be furnished.

              Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Agreement (other than pursuant to
Section 10.5) shall include:

              (1) a statement that each individual signing such certificate or
     opinion has read such covenant or condition and the definitions herein
     relating thereto;

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

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

              (4) a statement as to whether, in the opinion of each such
     individual, such condition or covenant has been complied with.

Section 1.3.  Form of Documents Delivered to Purchase Contract Agent.

              In any case where several matters are required to be certified by,
or covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

              Any certificate or opinion of an officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

              Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Agreement, they may, but need not, be consolidated and
form one instrument.

Section 1.4.  Acts of Holders; Record Dates.

              (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Agreement to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person
<PAGE>

                                                                              12

or by an agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Purchase Contract Agent and, where it is hereby
expressly required, to the Company. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the "Act" of the Holders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent shall
be sufficient for any purpose of this Agreement and (subject to Section 7.1)
conclusive in favor of the Purchase Contract Agent and the Company, if made in
the manner provided in this Section.

              (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any manner which the Purchase Contract
Agent deems sufficient.

              (c) The ownership of Securities shall be proved by the Corporate
PIES Register or the Treasury PIES Register, as the case may be.

              (d) Any request, demand, authorization, direction, notice,
consent, waiver or other Act of the Holder of any Certificate shall bind every
future Holder of the same Certificate and the Holder of every Certificate issued
upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the
Purchase Contract Agent or the Company in reliance thereon, whether or not
notation of such action is made upon such Certificate.

              (e) The Company may set any day as a record date for the purpose
of determining the Holders of Outstanding Securities entitled to give, make or
take any request, demand, authorization, direction, notice, consent, waiver or
other action provided or permitted by this Agreement to be given, made or taken
by Holders of Securities. If any record date is set pursuant to this paragraph,
the Holders of the Outstanding Corporate PIES and the Outstanding Treasury PIES,
as the case may be, on such record date, and no other Holders, shall be entitled
to take the relevant action with respect to the Corporate PIES or the Treasury
PIES, as the case may be, whether or not such Holders remain Holders after such
record date; provided that no such action shall be effective hereunder unless
taken on or prior to the applicable Expiration Date by Holders of the requisite
number of Outstanding Securities on such record date. Nothing contained in this
paragraph shall be construed to prevent the Company from setting a new record
date for any action for which a record date has previously been set pursuant to
this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be cancelled and be of no effect), and nothing
contained in this paragraph shall be construed to render ineffective any action
taken by Holders of the requisite number of Outstanding Securities on the date
such action is taken. Promptly after any record date is set pursuant to this
paragraph, the Company, at its own expense, shall cause notice of such record
date, the proposed action by Holders and the applicable Expiration Date to be
given to the Purchase Contract Agent in writing and to each Holder of Securities
in the manner set forth in Section 1.6.

              With respect to any record date set pursuant to this Section, the
Company may designate any date as the "Expiration Date" and from time to time
may change the Expiration Date to any earlier or later day; provided that no
such change shall be effective unless notice of the proposed new Expiration Date
is given to the Purchase Contract Agent in writing, and to each Holder of
Securities in the manner set forth in Section 1.6, on or prior to the existing
Expiration Date. If an
<PAGE>

                                                                              13

Expiration Date is not designated with respect to any record date set pursuant
to this Section, the Company shall be deemed to have initially designated the
180th day after such record date as the Expiration Date with respect thereto,
subject to its right to change the Expiration Date as provided in this
paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than
the 180th day after the applicable record date.

Section 1.5.   Notices.

               Any notice or communication is duly given if in writing and
delivered in Person or mailed by first-class mail (registered or certified,
return receipt requested), telecopier (with receipt confirmed) or overnight air
courier guaranteeing next day delivery, to the others' address; provided that
notice shall be deemed given to the Purchase Contract Agent only upon receipt
thereof:

               If to the Purchase Contract Agent:

               The Chase Manhattan Bank

               450 West 33/rd/ Street, 15/th/ Floor
               New York, New York  10001-2697
               Telecopier No.:  (212) 946-8159/8160
               Attention:  Capital Markets Fiduciary Services

               If to the Company:

               Dominion Resources, Inc.

               120 Tredegar Street
               Richmond, Virginia  23219
               Telecopier No.:  Treasurer
               Attention:  (804) 819-2211

               If to the Collateral Agent and Securities Intermediary:

               Bank One Trust Company, N.A.

               153 West 51/st/ Street
               New York, New York  10019
               Telecopier No.:  (212) 373-1383
               Attention:  Corporate Trust Administration

               If to the Indenture Trustee:

               The Chase Manhattan Bank

               450 West 33/rd/ Street, 15/th/ Floor
               New York, New York  10001-2697
               Telecopier No.:  (212) 946-8159/8160
               Attention:  Capital Markets Fiduciary Services

Section 1.6.   Notice to Holders; Waiver.
<PAGE>

                                                                              14

               Where this Agreement provides for notice to Holders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each Holder
affected by such event, at its address as it appears in the applicable Register,
not later than the latest date, and not earlier than the earliest date,
prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Where this Agreement provides for notice
in any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Purchase Contract Agent, but such filing shall not be a condition precedent
to the validity of any action taken in reliance upon such waiver.

               In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Purchase
Contract Agent shall constitute a sufficient notification for every purpose
hereunder.

Section 1.7.   Effect of Headings and Table of Contents.

               The Article and Section headings herein and the Table of Contents
are for convenience only and shall not affect the construction hereof.

Section 1.8.   Successors and Assigns.

               All covenants and agreements in this Agreement by the Company
shall bind its successors and assigns, whether so expressed or not.

Section 1.9.   Separability Clause.

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

Section 1.10.  Benefits of Agreement.

               Nothing contained in this Agreement or in the Securities, express
or implied, shall give to any Person, other than the parties hereto and their
successors hereunder and, to the extent provided hereby, the Holders, any
benefits or any legal or equitable right, remedy or claim under this Agreement.
The Holders from time to time shall be beneficiaries of this Agreement and shall
be bound by all of the terms and conditions hereof and of the Securities
evidenced by their Certificates by their acceptance of delivery of such
Certificates.

Section 1.11.  Governing Law.

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

Section 1.12.  Legal Holidays.
<PAGE>

                                                                              15

               In any case where any Payment Date shall not be a Business Day,
then (notwithstanding any other provision of this Agreement or the Corporate
PIES Certificates or the Treasury PIES Certificates) Contract Adjustment
Payments shall not be made on such date, but shall be made on the next
succeeding Business Day with the same force and effect as if made on such
Payment Date, provided that no interest shall accrue or be payable by the
Company or any Holder for the period from and after any such Payment Date,
except that, if such next succeeding Business Day is in the next succeeding
calendar year, such payment shall be made on the immediately preceding Business
Day with the same force and effect as if made on such Payment Date.

               In any case where any Purchase Contract Settlement Date shall not
be a Business Day, notwithstanding any other provision of this Agreement, the
Corporate PIES Certificates or the Treasury PIES Certificates, Purchase
Contracts shall not be performed on such date, but the Purchase Contracts shall
be performed on the immediately following Business Day with the same force and
effect as if performed on the Purchase Contract Settlement Date.

Section 1.13.  Counterparts.

               This Agreement may be executed in any number of counterparts by
the parties hereto on separate counterparts, each of which, when so executed and
delivered, shall be deemed an original, but all such counterparts shall together
constitute one and the same instrument.

Section 1.14.  Inspection of Agreement.

               A copy of this Agreement shall be available at all reasonable
times during normal business hours at the Corporate Trust Office for inspection
by any Holder or Beneficial Owner.

                                  ARTICLE II

                               Certificate Forms

Section 2.1.   Forms of Certificates Generally.

               The Corporate PIES Certificates (including the form of Purchase
Contract forming part of the Corporate PIES evidenced thereby) shall be in
substantially the form set forth in Exhibit A hereto, with such letters, numbers
or other marks of identification or designation and such legends or endorsements
printed, lithographed or engraved thereon as may be required by the rules of any
securities exchange on which the Corporate PIES are listed or any depositary
therefor, or as may, consistently herewith, be determined by the officers of the
Company executing such Corporate PIES Certificates, as evidenced by their
execution of the Corporate PIES Certificates.

               The definitive Corporate PIES Certificates shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers of the Company executing the
Corporate PIES evidenced by such Corporate PIES Certificates, consistent with
the provisions of this Agreement, as evidenced by their execution thereof.

               The Treasury PIES Certificates (including the form of Purchase
Contracts forming part of the Treasury PIES evidenced thereby) shall be in
substantially the form set forth in Exhibit B hereto, with such letters, numbers
or other marks of identification or designation and such legends or
<PAGE>

                                                                              16

endorsements printed, lithographed or engraved thereon as may be required by the
rules of any securities exchange on which the Treasury PIES may be listed or any
depositary therefor, or as may, consistently herewith, be determined by the
officers of the Company executing such Treasury PIES Certificates, as evidenced
by their execution of the Treasury PIES Certificates.

               The definitive Treasury PIES Certificates shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers of the Company executing the
Treasury PIES evidenced by such Treasury PIES Certificates, consistent with the
provisions of this Agreement, as evidenced by their execution thereof.

               Every Global Certificate authenticated, executed on behalf of the
Holders and delivered hereunder shall bear a legend in substantially the
following form:

          "This Certificate is a Global Certificate within the meaning of the
          Purchase Contract Agreement hereinafter referred to and is registered
          in the name of The Depository Trust Company, a New York corporation
          (the "Depositary"), or a nominee of the Depositary. This Certificate
          is exchangeable for certificates registered in the name of a person
          other than the Depositary or its nominee only in the limited
          circumstances described in the Purchase Contract Agreement and no
          transfer of this Certificate (other than a transfer of this
          Certificate as a whole by the Depositary to a nominee of the
          Depositary or by a nominee of the Depositary to the Depositary or
          another nominee of the Depositary) may be registered except in limited
          circumstances.

          Unless this Certificate is presented by an authorized representative
          of the Depositary for registration of transfer, exchange or payment,
          and any certificate issued is registered in the name of Cede & Co. or
          such other name as is requested by an authorized representative of the
          Depositary (and any payment hereon is made to Cede & Co. or to such
          other entity as is requested by an authorized representative of the
          Depositary), any transfer, pledge or other use hereof for value or
          otherwise by or to any person is wrongful since the registered owner
          hereof, Cede & Co., has an interest herein."

Section 2.2.   Form of Purchase Contract Agent's Certificate of Authentication.

               The form of the Purchase Contract Agent's certificate of
authentication of the Corporate PIES shall be in substantially the form set
forth on the form of the Corporate PIES Certificates.

               The form of the Purchase Contract Agent's certificate of
authentication of the Treasury PIES shall be in substantially the form set forth
on the form of the Treasury PIES Certificates.

                                  ARTICLE III

                                The Securities

Section 3.1.  Amount; Form and Denominations.
<PAGE>

                                                                              17

               The aggregate number of Securities evidenced by Certificates
authenticated, executed on behalf of the Holders and delivered hereunder is
limited to 8,250,000, except for Certificates authenticated, executed and
delivered upon registration of transfer of, in exchange for, or in lieu of,
other Certificates pursuant to Section 3.4, 3.5, 3.10, 3.13, 3.14, 5.9 or 8.5.

               The Certificates shall be issuable only in registered form and
only in denominations of a single Corporate PIES or Treasury PIES and any
integral multiple thereof.

Section 3.2.   Rights and Obligations Evidenced by the Certificates.

               Each Corporate PIES Certificate shall evidence the number of
Corporate PIES specified therein, with each such Corporate PIES representing (1)
the ownership by the Holder thereof of a beneficial interest in one Senior Note,
subject to the Pledge of such Senior Note by such Holder pursuant to the Pledge
Agreement, and (2) the rights and obligations of the Holder thereof and the
Company under one Purchase Contract. The Purchase Contract Agent as attorney-in-
fact for, and on behalf of, the Holder of each Corporate PIES shall pledge,
pursuant to the Pledge Agreement, the Senior Note, forming a part of such
Corporate PIES, to the Collateral Agent and grant to the Collateral Agent a
security interest in the right, title and interest of such Holder in such Senior
Note for the benefit of the Company, to secure the obligation of the Holder
under each Purchase Contract to purchase shares of Common Stock. Prior to the
purchase of shares of Common Stock under each Purchase Contract, such Purchase
Contracts shall not entitle the Holder of a Corporate PIES Certificate to any of
the rights of a holder of shares of Common Stock, including, without limitation,
the right to vote or receive any dividends or other payments or to consent or to
receive notice as a shareholder in respect of the meetings of shareholders or
for the election of directors of the Company or for any other matter, or any
other rights whatsoever as a shareholder of the Company.

               Upon the formation of Treasury PIES pursuant to Section 3.13,
each Treasury PIES Certificate shall evidence the number of Treasury PIES
specified therein, with each such Treasury PIES representing (1) the ownership
by the Holder thereof of a 1/20 undivided beneficial interest in a Treasury
Security with a principal amount equal to $1,000, subject to the Pledge of such
Treasury Security by such Holder pursuant to the Pledge Agreement, and (2) the
rights and obligations of the Holder thereof and the Company under one Purchase
Contract. Prior to the purchase of shares of Common Stock under each Purchase
Contract, such Purchase Contract shall not entitle the Holder of a Treasury PIES
Certificate to any of the rights of a holder of shares of Common Stock,
including, without limitation, the right to vote or receive any dividends or
other payments or to consent or to receive notice as a shareholder in respect of
the meetings of shareholders or for the election of directors of the Company or
for any other matter, or any other rights whatsoever as a shareholder of the
Company.

Section 3.3.   Execution, Authentication, Delivery and Dating.

               Subject to the provisions of Sections 3.13 and 3.14 hereof, upon
the execution and delivery of this Agreement, and at any time and from time to
time thereafter, the Company may deliver Certificates executed by the Company to
the Purchase Contract Agent for authentication, execution on behalf of the
Holders and delivery, together with its Issuer Order for authentication of such
Certificates, and the Purchase Contract Agent in accordance with such Issuer
Order shall authenticate, execute on behalf of the Holders and deliver such
Certificates.
<PAGE>

                                                                              18

               The Certificates shall be executed on behalf of the Company by
(i) either its Chief Executive Officer, its President or one of its Vice
Presidents and (ii) either the Corporate Secretary or one of its Assistant
Corporate Secretaries or its Treasurer or one of its Assistant Treasurers. The
signature of any of these officers on the Certificates may be manual or
facsimile.

               Certificates bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Certificates
or did not hold such offices at the date of such Certificates.

               No Purchase Contract evidenced by a Certificate shall be valid
until such Certificate has been executed on behalf of the Holder by the manual
signature of an authorized officer of the Purchase Contract Agent, as such
Holder's attorney-in-fact. Such signature by an authorized officer of the
Purchase Contract Agent shall be conclusive evidence that the Holder of such
Certificate has entered into the Purchase Contracts evidenced by such
Certificate.

               Each Certificate shall be dated the date of its authentication.

               No Certificate shall be entitled to any benefit under this
Agreement or be valid or obligatory for any purpose unless there appears on such
Certificate a certificate of authentication substantially in the form provided
for herein executed by an authorized officer of the Purchase Contract Agent by
manual signature, and such certificate upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder.

Section 3.4.   Temporary Certificates.

               Pending the preparation of definitive Certificates, the Company
shall execute and deliver to the Purchase Contract Agent, and the Purchase
Contract Agent shall authenticate, execute on behalf of the Holders, and
deliver, in lieu of such definitive Certificates, temporary Certificates which
are in substantially the form set forth in Exhibit A or Exhibit B hereto, as the
case may be, with such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved
thereon as may be required by the rules of any securities exchange on which the
Corporate PIES or Treasury PIES are or may be listed, or as may, consistently
herewith, be determined by the officers of the Company executing such
Certificates, as evidenced by their execution of the Certificates.

               If temporary Certificates are issued, the Company will cause
definitive Certificates to be prepared without unreasonable delay.  After the
preparation of definitive Certificates, the temporary Certificates shall be
exchangeable for definitive Certificates upon surrender of the temporary
Certificates at the Corporate Trust Office, at the expense of the Company and
without charge to the Holder.  Upon surrender for cancellation of any one or
more temporary Certificates, the Company shall execute and deliver to the
Purchase Contract Agent, and the Purchase Contract Agent shall authenticate,
execute on behalf of the Holder, and deliver in exchange therefor, one or more
definitive Certificates of like tenor and denominations and evidencing a like
aggregate number of Corporate PIES or Treasury PIES, as the case may be, as the
temporary Certificate or Certificates so surrendered.  Until so exchanged, the
temporary Certificates shall in all respects evidence the same
<PAGE>

                                                                              19

benefits and the same obligations with respect to the Corporate PIES or Treasury
PIES, as the case may be, evidenced thereby as definitive Certificates.

Section 3.5.   Registration; Registration of Transfer and Exchange.

               The Purchase Contract Agent shall keep at the Corporate Trust
Office a register (the "Corporate PIES Register") in which, subject to such
reasonable regulations as it may prescribe, the Purchase Contract Agent shall
provide for the registration of Corporate PIES Certificates and of transfers of
Corporate PIES Certificates (the Purchase Contract Agent, in such capacity, the
"Corporate PIES Registrar") and a register (the "Treasury PIES Register") in
which, subject to such reasonable regulations as it may prescribe, the Purchase
Contract Agent shall provide for the registration of the Treasury PIES
Certificates and transfers of Treasury PIES Certificates (the Purchase Contract
Agent, in such capacity, the "Treasury PIES Registrar").

               Upon surrender for registration of transfer of any Certificate at
the Corporate Trust Office, the Company shall execute and deliver to the
Purchase Contract Agent, and the Purchase Contract Agent shall authenticate,
execute on behalf of the designated transferee or transferees, and deliver, in
the name of the designated transferee or transferees, one or more new
Certificates of any authorized denominations, like tenor, and evidencing a like
aggregate number of Corporate PIES or Treasury PIES, as the case may be.

               At the option of the Holder, Certificates may be exchanged for
other Certificates, of any authorized denominations and evidencing a like number
of Corporate PIES or Treasury PIES, as the case may be, upon surrender of the
Certificates to be exchanged at the Corporate Trust Office. Whenever any
Certificates are so surrendered for exchange, the Company shall execute and
deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall
authenticate, execute on behalf of the Holder, and deliver the Certificates
which the Holder making the exchange is entitled to receive.

               All Certificates issued upon any registration of transfer or
exchange of a Certificate shall evidence the ownership of the same aggregate
number of Corporate PIES or Treasury PIES, as the case may be, and be entitled
to the same benefits and subject to the same obligations, under this Agreement
as the Corporate PIES or Treasury PIES, as the case may be, evidenced by the
Certificate surrendered upon such registration of transfer or exchange.

               Every Certificate presented or surrendered for registration of
transfer or for exchange shall (if so required by the Purchase Contract Agent)
be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Purchase Contract Agent duly executed, by
the Holder thereof or its attorney duly authorized in writing.

               No service charge shall be made for any registration of transfer
or exchange of a Certificate, but the Company and the Purchase Contract Agent
may require payment from the Holder of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Certificates, other than any exchanges
pursuant to Sections 3.4, 3.6 and 8.5 not involving any transfer.

               Notwithstanding the foregoing, the Company shall not be obligated
to execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall not be obligated to
<PAGE>

                                                                              20

authenticate, execute on behalf of the Holder and deliver any Certificate in
exchange for any other Certificate presented or surrendered for registration of
transfer or for exchange on or after the Business Day im mediately preceding the
earlier of the Purchase Contract Settlement Date or the Termination Date. In
lieu of delivery of a new Certificate, upon satisfaction of the applicable
conditions specified above in this Section and receipt of appropriate
registration or transfer instructions from such Holder, the Purchase Contract
Agent shall:

               (1)  if the Purchase Contract Settlement Date has occurred,
          deliver the shares of Common Stock issuable in respect of the Purchase
          Contracts forming a part of the Securities evidenced by such other
          Certificate; or

               (2)  if a Termination Event shall have occurred prior to the
          Purchase Contract Settlement Date, transfer the Senior Notes or the
          Treasury Securities, as the case may be, evidenced thereby,

in each case subject to the applicable conditions and in accordance with the
applicable provisions of Article Five hereof.

Section 3.6.   Book-Entry Interests.

               The Certificates, on original issuance, will be issued in the
form of one or more fully registered Global Certificates, to be delivered to the
Depositary or its custodian by, or on behalf of, the Company. Such Global
Certificate shall initially be registered on the books and records of the
Company in the name of Cede & Co., the nominee of the Depositary, and no
Beneficial Owner will receive a definitive Certificate representing such
Beneficial Owner's interest in such Global Certificate, except as provided in
Section 3.9. The Purchase Contract Agent shall enter into an agreement with the
Depositary if so requested by the Company. Unless and until definitive, fully
registered Certificates have been issued to Beneficial Owners pursuant to
Section 3.9:

               (1)  the provisions of this Section 3.6 shall be in full force
          and effect;

               (2)  the Company shall be entitled to deal with the Clearing
          Agency for all purposes of this Agreement (including making Contract
          Adjustment Payments and receiving approvals, votes or consents
          hereunder) as the Holder of the Securities and the sole holder of the
          Global Certificates and shall have no obligation to the Beneficial
          Owners;

               (3)  to the extent that the provisions of this Section 3.6
          conflict with any other provisions of this Agreement, the provisions
          of this Section 3.6 shall control; and

               (4)  the rights of the Beneficial Owners shall be exercised only
          through the Clearing Agency and shall be limited to those established
          by law and agreements between such Beneficial Owners and the Clearing
          Agency and/or the Clearing Agency Participants.

Section 3.7.   Notices to Holders.

               Whenever a notice or other communication to the Holders is
required to be given under this Agreement, the Company or the Company's agent
shall give such notices and communications to the Holders and, with respect to
any Securities registered in the name of a
<PAGE>

                                                                              21

Clearing Agency or the nominee of a Clearing Agency, the Company or the
Company's agent shall, except as set forth herein, have no obligations to the
Beneficial Owners.

Section 3.8.   Appointment of Successor Clearing Agency.

               If any Clearing Agency elects to discontinue its services as
securities depositary with respect to the Securities or ceases to be eligible as
a "clearing agency" under the Exchange Act, the Company may, in its sole
discretion, appoint a successor Clearing Agency with respect to the Securities.

Section 3.9.   Definitive Certificates.

               If:

               (1)  a Clearing Agency elects to discontinue its services as
          securities depositary with respect to the Securities or ceases to be
          eligible as a "clearing agency" under the Exchange Act and a successor
          Clearing Agency is not appointed by the Company pursuant to Section
          3.8 within 90 days after the Company receives notice from the Clearing
          Agency of such election or becomes aware of such cessation; or

               (2)  there shall have occurred and be continuing a default by the
          Company in respect of its obligations under one or more Purchase
          Contracts,

then upon surrender of the Global Certificates representing the Securities by
the Clearing Agency, accompanied by registration instructions, the Company shall
cause definitive Certificates to be delivered to Beneficial Owners in accordance
with the instructions of the Clearing Agency.  The Company and the Purchase
Contract Agent shall not be liable for any delay in delivery of such
instructions and may conclusively rely on and shall be protected in relying on,
such instructions.

Section 3.10.  Mutilated, Destroyed, Lost and Stolen Certificates.

               If any mutilated Certificate is surrendered to the Purchase
Contract Agent, the Company shall execute and deliver to the Purchase Contract
Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of
the Holder, and deliver in exchange therefor, a new Certificate, evidencing the
same number of Corporate PIES or Treasury PIES, as the case may be, and bearing
a Certificate number not contemporaneously outstanding.

               If there shall be delivered to the Company and the Purchase
Contract Agent (i) evidence to their satisfaction of the destruction, loss or
theft of any Certificate, and (ii) such security or indemnity as may be required
by them to hold each of them and any agent of any of them harmless, then, in the
absence of notice to the Company or the Purchase Contract Agent that such
Certificate has been acquired by a bona fide purchaser, the Company shall
execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall authenticate, execute on behalf of the Holder, and deliver to the
Holder, in lieu of any such destroyed, lost or stolen Certificate, a new
Certificate, evidencing the same number of Corporate PIES or Treasury PIES, as
the case may be, and bearing a Certificate number not contemporaneously
outstanding.
<PAGE>

                                                                              22

               Notwithstanding the foregoing, the Company shall not be obligated
to execute and deliver to the Purchase Contract Agent, and the Purchase Contract
Agent shall not be obligated to authenticate, execute on behalf of the Holder,
and deliver to the Holder, a Certificate on or after the Business Day
immediately preceding the earlier of the Purchase Contract Settlement Date or
the Termination Date. In lieu of delivery of a new Certificate, upon
satisfaction of the applicable conditions specified above in this Section and
receipt of appropriate registration or transfer instructions from such Holder,
the Purchase Contract Agent shall:

               (1)  if the Purchase Contract Settlement Date has occurred,
          deliver the shares of Common Stock issuable in respect of the Purchase
          Contracts forming a part of the Securities evidenced by such
          Certificate; or

               (2)  if a Termination Event shall have occurred prior to the
          Purchase Contract Settlement Date, transfer the Senior Notes or the
          Treasury Securities, as the case may be, evidenced thereby,

in each case subject to the applicable conditions and in accordance with the
applicable provisions of Article Five hereof.

               Upon the issuance of any new Certificate under this Section, the
Company and the Purchase Contract Agent may require the payment by the Holder of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Purchase Contract Agent) connected therewith.

               Every new Certificate issued pursuant to this Section in lieu of
any destroyed, lost or stolen Certificate shall constitute an original
additional contractual obligation of the Company and of the Holder in respect of
the Security evidenced thereby, whether or not the destroyed, lost or stolen
Certificate (and the Securities evidenced thereby) shall be at any time
enforceable by anyone, and shall be entitled to all the benefits and be subject
to all the obligations of this Agreement equally and proportionately with any
and all other Certificates delivered hereunder.

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

Section 3.11.  Persons Deemed Owners.

               Prior to due presentment of a Certificate for registration of
transfer, the Company and the Purchase Contract Agent, and any agent of the
Company or the Purchase Contract Agent, may treat the Person in whose name such
Certificate is registered as the owner of the Corporate PIES or Treasury PIES
evidenced thereby, for the purpose of receiving interest payments on the Senior
Notes, receiving Contract Adjustment Payments, performance of the Purchase
Contracts and for all other purposes whatsoever, whether or not any interest
payments on the Senior Notes or the Contract Adjustment Payments payable in
respect of the Purchase Contracts constituting a part of the Corporate PIES or
Treasury PIES evidenced thereby shall be overdue and notwithstanding any notice
to the contrary, and neither the Company nor the Purchase Contract Agent, nor
any agent of the Company or the Purchase Contract Agent, shall be affected by
notice to the contrary.
<PAGE>

                                                                              23

               Notwithstanding the foregoing, with respect to any Global
Certificate, nothing contained herein shall prevent the Company, the Purchase
Contract Agent or any agent of the Company or the Purchase Contract Agent, from
giving effect to any written certification, proxy or other authorization
furnished by any Clearing Agency (or its nominee), as a Holder, with respect to
such Global Certificate or impair, as between such Clearing Agency and owners of
beneficial interests in such Global Certificate, the operation of customary
practices governing the exercise of rights of such Clearing Agency (or its
nominee) as Holder of such Global Certificate.

Section 3.12.  Cancellation.

               All Certificates surrendered for delivery of shares of Common
Stock on or after the Purchase Contract Settlement Date, upon the transfer of
Senior Notes or Treasury Securities, as the case may be, after the occurrence of
a Termination Event or pursuant to an Early Settlement, or upon the registration
of a transfer or exchange of a Security, or a Collateral Substitution or the
reestablishment of Corporate PIES shall, if surrendered to any Person other than
the Purchase Contract Agent, be delivered to the Purchase Contract Agent and, if
not already cancelled, shall be promptly cancelled by it. The Company may at any
time deliver to the Purchase Contract Agent for cancellation any Certificates
previously authenticated, executed and delivered hereunder which the Company may
have acquired in any manner whatsoever, and all Certificates so delivered shall,
upon Issuer Order, be promptly cancelled by the Purchase Contract Agent. No
Certificates shall be authenticated, executed on behalf of the Holder and
delivered in lieu of or in exchange for any Certificates cancelled as provided
in this Section, except as expressly permitted by this Agreement. All cancelled
Certificates held by the Purchase Contract Agent shall be disposed of by the
Purchase Contract Agent in accordance with its customary procedures.

               If the Company or any Affiliate of the Company shall acquire any
Certificate, such acquisition shall not operate as a cancellation of such
Certificate unless and until such Certificate is delivered to the Purchase
Contract Agent cancelled or for cancellation.

Section 3.13.  Creation of Treasury PIES by Substitution of Treasury Securities.

               A Holder may separate the Senior Notes from the related Purchase
Contracts in respect of such Holder's Corporate PIES by substituting for such
Senior Notes Treasury Securities in an aggregate principal amount equal to the
aggregate principal amount of such Senior Notes (a "Collateral Substitution"),
at any time from and after the date of this Agreement and on or prior to the
seventh Business Day immediately preceding the Purchase Contract Settlement Date
by:

               (1)  depositing with the Securities Intermediary Treasury
          Securities having an aggregate principal amount at maturity equal to
          the aggregate principal amount of the Senior Notes comprising part of
          such Corporate PIES; and

               (2)  transferring the related Corporate PIES to the Purchase
          Contract Agent accompanied by a notice to the Purchase Contract Agent,
          substantially in the form of Exhibit C hereto, stating that the Holder
          has transferred the relevant amount of Treasury Securities to the
          Securities Intermediary and requesting that the Purchase Contract
          Agent instruct the Collateral Agent to release the Senior Notes
          underlying such Corporate PIES, whereupon the
<PAGE>

                                                                              24

     Purchase Contract Agent shall promptly give such instruction to the
     Collateral Agent, substantially in the form of Exhibit A to the Pledge
     Agreement.

Upon receipt of the Treasury Securities described in clause (1) above and the
instruction described in clause (2) above, in accordance with the terms of the
Pledge Agreement, the Collateral Agent will cause the Securities Intermediary to
effect the release of such Senior Notes from the Pledge to the Purchase Contract
Agent, free and clear of the Company's security interest therein, and the
transfer of such Senior Notes to the Purchase Contract Agent on behalf of the
Holder.  Upon receipt thereof, the Purchase Contract Agent shall promptly:

               (1)    cancel the related Corporate PIES;

               (ii)   transfer the Senior Notes to the Holder; and

               (iii)  authenticate, execute on behalf of such Holder and deliver
a Treasury PIES Certificate executed by the Company in accordance with Section
3.3 evidencing the same number of Purchase Contracts as were evidenced by the
cancelled Corporate PIES.

               Holders who elect to separate the Senior Notes from the related
Purchase Contracts and to substitute Treasury Securities for such Senior Notes
shall be responsible for any fees or expenses payable to the Collateral Agent
for its services as Collateral Agent in respect of the substitution, and the
Company shall not be responsible for any such fees or expenses.

               Holders may make Collateral Substitutions only in integral
multiples of 20 Corporate PIES.

               In the event a Holder making a Collateral Substitution pursuant
to this Section 3.13 fails to effect a book-entry transfer of the Corporate PIES
or fails to deliver Corporate PIES Certificates to the Purchase Contract Agent
after depositing Treasury Securities with the Collateral Agent, the Senior
Notes, constituting a part of such Corporate PIES, and any interest payments on
such Senior Notes, shall be held in the name of the Purchase Contract Agent or
its nominee in trust for the benefit of such Holder, until such Corporate PIES
are so transferred or the Corporate PIES Certificates are so delivered, as the
case may be, or, with respect to the Corporate PIES Certificates, such Holder
provides evidence satisfactory to the Company and the Purchase Contract Agent
that such Corporate PIES Certificates have been destroyed, lost or stolen,
together with any indemnity that may be required by the Purchase Contract Agent
and the Company.

               Except as described in this Section 3.13, for so long as the
Purchase Contract underlying a Corporate PIES remains in effect, such Corporate
PIES shall not be separable into its constituent parts, and the rights and
obligations of the Holder in respect of the Senior Note and the Purchase
Contract comprising such Corporate PIES may be acquired, and may be transferred
and exchanged, only as a Corporate PIES.

Section 3.14.  Reestablishment of Corporate PIES.

               A Holder of a Treasury PIES may recreate Corporate PIES at any
time on or prior to the seventh Business Day immediately preceding the Purchase
Contract Settlement Date by:
<PAGE>

                                                                              25

               (1)  depositing with the Securities Intermediary Senior Notes
          having an aggregate principal amount equal to the aggregate principal
          amount at maturity of the Treasury Securities comprising part of the
          Treasury PIES; and

               (2)  transferring the related Treasury PIES to the Purchase
          Contract Agent accompanied by a notice to the Purchase Contract Agent,
          substantially in the form of Exhibit C hereto, (i) stating that the
          Holder has transferred the relevant amount of Senior Notes to the
          Securities Intermediary and (ii) requesting that the Purchase Contract
          Agent instruct the Collateral Agent to release the Treasury Securities
          underlying such Treasury PIES, whereupon the Purchase Contract Agent
          shall promptly give such instruction to the Collateral Agent,
          substantially in the form of Exhibit C to the Pledge Agreement.

Upon receipt of the Senior Notes described in clause (1) above and the
instruction described in clause (2) above, in accordance with the terms of the
Pledge Agreement, the Collateral Agent will cause the Securities Intermediary to
effect the release of such Treasury Securities from the Pledge to the Purchase
Contract Agent, free and clear of the Company's security interest therein, and
the transfer of such Treasury Securities to the Purchase Contract Agent on
behalf of the Holder.  Upon receipt thereof, the Purchase Contract Agent shall
promptly:

               (i)    cancel the related Treasury PIES;

               (ii)   transfer the Treasury Securities to the Holder; and

               (iii)  authenticate, execute on behalf of such Holder and deliver
a Corporate PIES Certificate executed by the Company in accordance with Section
3.3 evidencing the same number of Purchase Contracts as were evidenced by the
cancelled Treasury PIES.

               Holders who elect to recreate Corporate PIES shall be responsible
for any fees or expenses payable to the Collateral Agent for its services as
Collateral Agent in respect of the substitution, and the Company shall not be
responsible for any such fees or expenses.

               Holders of Treasury PIES may reestablish Corporate PIES in
integral multiples of 20 Treasury PIES for 20 Corporate PIES.

               Except as provided in this Section 3.14, for so long as the
Purchase Contract underlying a Treasury PIES remains in effect, such Treasury
PIES shall not be separable into its constituent parts and the rights and
obligations of the Holder of such Treasury PIES in respect of the 1/20 of a
Treasury Security and the Purchase Contract comprising such Treasury PIES may be
acquired, and may be transferred and exchanged, only as a Treasury PIES.

Section 3.15.  Transfer of Collateral upon Occurrence of Termination Event.
<PAGE>

                                                                              26

               Upon the occurrence of a Termination Event and the transfer to
the Purchase Contract Agent of the Senior Notes or the Treasury Securities, as
the case may be, underlying the Corporate PIES and the Treasury PIES, as the
case may be, pursuant to the terms of the Pledge Agreement, the Purchase
Contract Agent shall request transfer instructions with respect to such Senior
Notes or Treasury Securities, as the case may be, from each Holder by written
request, substantially in the form of Exhibit D hereto, mailed to such Holder at
its address as it appears in the Corporate PIES Register or the Treasury PIES
Register, as the case may be.

               Upon book-entry transfer of the Corporate PIES or Treasury PIES
or delivery of a Corporate PIES Certificate or Treasury PIES Certificate to the
Purchase Contract Agent with such transfer instructions, the Purchase Contract
Agent shall transfer the Senior Notes or Treasury Securities, as the case may
be, underlying such Corporate PIES or Treasury PIES, as the case may be, to such
Holder by book-entry transfer, or other appropriate procedures, in accordance
with such instructions. In the event a Holder of Corporate PIES or Treasury PIES
fails to effect such transfer or delivery, the Senior Notes or Treasury
Securities, as the case may be, underlying such Corporate PIES or Treasury PIES,
as the case may be, and any interest thereon, shall be held in the name of the
Purchase Contract Agent or its nominee in trust for the benefit of such Holder,
until the earlier of:

               (1)  such Corporate PIES or Treasury PIES are transferred or the
          Corporate PIES Certificate or Treasury PIES Certificate is surrendered
          or such Holder provides satisfactory evidence that such Corporate PIES
          Certificate or Treasury PIES Certificate has been destroyed, lost or
          stolen, together with any indemnity that may be required by the
          Purchase Contract Agent and the Company; and

               (2)  the expiration of the time period specified in the abandoned
          property laws of the relevant State.

Section 3.16.  No Consent to Assumption.

               Each Holder of a Security, by acceptance thereof, shall be deemed
expressly to have withheld any consent to the assumption under Section 365 of
the Bankruptcy Code or otherwise, of the Purchase Contract by the Company or its
trustee, receiver, liquidator or a person or entity performing similar functions
in the event that the Company becomes the debtor under the Bankruptcy Code or
subject to other similar state or federal law providing for reorganization or
liquidation.
<PAGE>

                                                                              27

                                  ARTICLE IV

                                The Senior Notes

Section 4.1.   Interest Payments; Rights to Interest Preserved.

               An interest payment on any Senior Note which is paid on any
Payment Date shall, subject to receipt thereof by the Purchase Contract Agent
from the Collateral Agent as provided by the terms of the Pledge Agreement, be
paid to the Person in whose name the Corporate PIES Certificate (or one or more
Predecessor Corporate PIES Certificates) of which such Senior Note is a part is
registered at the close of business on the Record Date for such Payment Date.

               Each Corporate PIES Certificate evidencing the Senior Note
delivered under this Agreement upon registration of transfer of or in exchange
for or in lieu of any other Corporate PIES Certificate shall carry the right to
accrued and unpaid interest, and the right to accrue interest, which rights were
carried by the Senior Note underlying such other Corporate PIES Certificate.

               In the case of any Corporate PIES with respect to which Cash
Settlement of the underlying Purchase Contract is effected on or prior to the
fifth Business Day immediately preceding the Purchase Contract Settlement Date
pursuant to prior notice, or with respect to which Early Settlement of the
underlying Purchase Contract is effected on an Early Settlement Date, or with
respect to which a Collateral Substitution is effected, in each case on a date
that is after any Record Date and on or prior to the next succeeding Payment
Date, the interest payment on the Senior Note underlying such Corporate PIES
otherwise payable on such Payment Date shall be payable on such Payment Date
notwithstanding such Cash Settlement or Early Settlement or Collateral
Substitution, and such interest payment shall, subject to receipt thereof by the
Purchase Contract Agent, be payable to the Person in whose name the Corporate
PIES Certificate (or one or more Predecessor Corporate PIES Certificates) was
registered at the close of business on the Record Date.  Except as otherwise
expressly provided in the immediately preceding sentence, in the case of any
Corporate PIES with respect to which Cash Settlement or Early Settlement of the
underlying Purchase Contract is effected on or prior to the fifth Business Day
immediately preceding the Purchase Contract Settlement Date or on an Early
Settlement Date, as the case may be, or with respect to which a Collateral
Substitution has been effected, interest payments on the related Senior Notes
that would otherwise be payable after the Purchase Contract Settlement Date,
Early Settlement Date or Collateral Substitution shall not be payable hereunder
to the Holder of such Corporate PIES; provided, however, that to the extent that
such Holder continues to hold the separated Senior Note that formerly comprised
a part of such Holder's Corporate PIES, such Holder shall be entitled to receive
the interest payments on such separated Senior Note, as provided in the
Supplemental Indenture.

Section 4.2.   Interest Rate Reset.

               The applicable interest rate borne by the Senior Notes on and
after the Purchase Contract Settlement Date shall be reset pursuant to the
Remarketing on the third Business Day immediately preceding the Purchase
Contract Settlement Date to a rate equal to the Reset Rate (such Reset Rate to
be in effect on and after the Purchase Contract Settlement Date).
<PAGE>

                                                                              28

Section 4.3.   Notice and Voting.

               Under the terms of the Pledge Agreement, the Purchase Contract
Agent will be entitled to exercise the voting and any other consensual rights
pertaining to the Pledged Senior Notes, but only to the extent instructed in
writing by the Holders as described below. Upon receipt of notice of any meeting
at which holders of Senior Notes are entitled to vote or upon any solicitation
of consents, waivers or proxies of holders of Senior Notes, the Purchase
Contract Agent shall, as soon as practicable thereafter, mail to the Holders of
Corporate PIES a notice:

               (1)  containing such information as is contained in the notice or
          solicitation;

               (2)  stating that each Holder on the record date set by the
          Purchase Contract Agent therefor (which, to the extent possible, shall
          be the same date as the record date for determining the holders of
          Senior Notes entitled to vote) shall be entitled to instruct the
          Purchase Contract Agent as to the exercise of the voting rights
          pertaining to such Senior Notes underlying their Corporate PIES; and

               (3)  stating the manner in which such instructions may be given.

Upon the written request of the Holders of Corporate PIES on such record date
received by the Purchase Contract Agent at least six days prior to such meeting
or by the expiration date of any such solicitation, the Purchase Contract Agent
shall endeavor insofar as practicable to vote or cause to be voted, in
accordance with the instructions set forth in such requests, the maximum
principal amount of Senior Notes as to which any particular voting instructions
are received.  In the absence of specific instructions from the Holder of
Corporate PIES, the Purchase Contract Agent shall abstain from voting the Senior
Notes underlying such Corporate PIES.  The Company hereby agrees, if applicable,
to solicit Holders of Corporate PIES to timely instruct the Purchase Contract
Agent in order to enable the Purchase Contract Agent to vote such Senior Notes.

                                   ARTICLE V

                             The Purchase Contracts

Section 5.1.   Purchase of Shares of Common Stock.

               Each Purchase Contract shall, unless an Early Settlement has
occurred in accordance with Section 5.9 hereof, obligate the Holder of the
related Security to purchase, and the Company to sell, on the Purchase Contract
Settlement Date at a price equal to the Stated Amount (the "Purchase Price"), a
number of newly issued shares of Common Stock equal to the Settlement Rate
unless, on or prior to the Purchase Contract Settlement Date, there shall have
occurred a Termination Event with respect to the Security of which such Purchase
Contract is a part. The "Settlement Rate" is equal to:

               (1)  if the Applicable Market Value (as defined below) is equal
          to or greater than $61.20 (the "Threshold Appreciation Price"), 0.8170
          shares of Common Stock per Purchase Contract;
<PAGE>

                                                                              29

          (2)  if the Applicable Market Value is less than the Threshold
     Appreciation Price, but greater than $51.00 (the "Reference Price"), the
     number of shares of Common Stock having a value, based on the Applicable
     Market Value, equal to the Stated Amount; and

          (3)  if the Applicable Market Value is less than or equal to the
     Reference Price, 0.9804 shares of Common Stock per Purchase Contract,

in each case subject to adjustment as provided in Section 5.6 (and in each case
rounded upward or downward to the nearest 1/10,000th of a share).

          Promptly after the calculation of the Settlement Rate and the
Applicable Market Value, the Company shall give the Purchase Contract Agent
notice thereof.  All calculations and determinations of the Settlement Rate and
the Applicable Market Value shall be made by the Company or its agent and the
Purchase Contract Agent shall have no responsibility with respect thereto.

          As provided in Section 5.10, no fractional shares of Common Stock will
be issued upon settlement of Purchase Contracts.

          The "Applicable Market Value" means the average of the Closing Price
per share of Common Stock on each of the 20 Trading Days ending on the third
Trading Day immediately preceding the Purchase Contract Settlement Date.

          The "Closing Price" per share of the Common Stock on any date of
determination means:

          (1)  the closing sale price (or, if no closing price is reported, the
     last reported sale price) per share of the Common Stock on the New York
     Stock Exchange (the "NYSE") on such date;

          (2)  if the Common Stock is not listed for trading on the NYSE on any
     such date, the closing sale price per share as reported in the composite
     transactions for the principal United States securities exchange on which
     the Common Stock is so listed;

          (3)  if the Common Stock is not so listed on a United States national
     or regional securities exchange, the closing sale price per share as
     reported by The Nasdaq Stock Market;

          (4)  if the Common Stock is not so reported, the last quoted bid price
     per share for the Common Stock in the over-the-counter market as reported
     by the National Quotation Bureau or similar organization; or

          (5)  if such bid price is not available, the average of the mid-point
     of the last bid and ask prices per share of the Common Stock on such date
     from at least three nationally recognized independent investment banking
     firms retained for this purpose by the Company.

          A "Trading Day" means a day on which the Common Stock (1) is not
suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (2) has
traded at least once on the national or regional securities exchange
<PAGE>

                                                                              30

or association or over-the-counter market that is the primary market for the
trading of the Common Stock.

               Each Holder of a Corporate PIES or a Treasury PIES, by its
acceptance thereof:

               (1)  irrevocably authorizes the Purchase Contract Agent to enter
          into and perform the related Purchase Contract on its behalf as its
          attorney-in-fact (including the execution of Certificates on behalf of
          such Holder);

               (2)  agrees to be bound by the terms and provisions thereof;

               (3)  covenants and agrees to perform its obligations under such
          Purchase Contracts;

               (4)  consents to the provisions hereof;

               (5)  irrevocably authorizes the Purchase Contract Agent to enter
          into and perform this Agreement and the Pledge Agreement on its behalf
          as its attorney-in-fact; and

               (6)  consents to and agrees to be bound by the Pledge of the
          Senior Notes or the Treasury Securities pursuant to the Pledge
          Agreement;

provided that upon a Termination Event, the rights of the Holder of such
Security under the Purchase Contract may be enforced without regard to any other
rights or obligations.  Each Holder of a Corporate PIES or a Treasury PIES, by
its acceptance thereof, further covenants and agrees, that to the extent and in
the manner provided in Section 5.4 and the Pledge Agreement, but subject to the
terms thereof, Proceeds from the Remarketing of the Senior Notes or the Proceeds
from the Treasury Securities at maturity on the Purchase Contract Settlement
Date, as the case may be, shall be paid by the Collateral Agent to the Company
in satisfaction of such Holder's obligations under such Purchase Contract and
such Holder shall acquire no right, title or interest in such payments.

               Upon registration of transfer of a Certificate, the transferee
shall be bound (without the necessity of any other action on the part of such
transferee) by the terms of this Agreement, the Purchase Contracts underlying
such Certificate and the Pledge Agreement and the transferor shall be released
from the obligations under this Agreement, the Purchase Contracts underlying the
Certificates so transferred and the Pledge Agreement. The Company covenants and
agrees, and each Holder of a Certificate, by its acceptance thereof, likewise
covenants and agrees, to be bound by the provisions of this paragraph.

Section 5.2.   Contract Adjustment Payments.

               The Company shall pay, on each Payment Date, the Contract
Adjustment Payments payable in respect of each Purchase Contract to the Person
in whose name a Certificate (or one or more Predecessor Certificates) is
registered at the close of business on the Record Date next preceding such
Payment Date in such coin or currency of the United States as at the time of
payment shall be legal tender for the payment of public and private debts. The
Contract Adjustment Payments will be payable at the office of the Purchase
Contract Agent in The City of New York maintained for that purpose or, at the
option of the Company, by check mailed to the address of the Person entitled
<PAGE>

                                                                              31

thereto at such Person's address as it appears on the Corporate PIES Register or
Treasury PIES Register. If any date on which Contract Adjustment Payments are to
be made is not a Business Day, then payment of the Contract Adjustment Payments
payable on such date will be made on the next day that is a Business Day (and
without any interest in respect of any such delay), except that, if such
Business Day is in the next calendar year, such payment will be made on the
preceding Business Day.

               Upon the occurrence of a Termination Event, the Company's
obligation to pay Contract Adjustment Payments (including any accrued Contract
Adjustment Payments) shall cease.

               Each Certificate delivered under this Agreement upon registration
of transfer of or in exchange for or in lieu of (including as a result of a
Collateral Substitution or the reestablishment of Corporate PIES) any other
Certificate shall carry the right to accrued and unpaid Contract Adjustment
Payments, and the right to accrue Contract Adjustment Payments, which rights
were carried by the Purchase Contracts underlying such other Certificates.

               Subject to Section 5.9, in the case of any Security with respect
to which Early Settlement of the underlying Purchase Contract is effected on an
Early Settlement Date that is after any Record Date and on or prior to the next
succeeding Payment Date, Contract Adjustment Payments otherwise payable on such
Payment Date shall be payable on such Payment Date notwithstanding such Early
Settlement, and such Contract Adjustment Payments shall be paid to the Person in
whose name the Certificate evidencing such Security (or one or more Predecessor
Certificates) is registered at the close of business on such Record Date. Except
as otherwise expressly provided in the immediately preceding sentence, in the
case of any Security with respect to which Early Settlement of the underlying
Purchase Contract is effected on an Early Settlement Date, Contract Adjustment
Payments that would otherwise be payable after the Early Settlement Date with
respect to such Purchase Contract shall not be payable.

               Promptly after the calculation of any adjustment to the Contract
Adjustment Payments arising from a Reset Transaction, the Company shall give the
Purchase Contract Agent notice thereof.  All calculations and determinations of
the Adjusted Contract Adjustment Payment Rate shall be made by the Company or
its agent and the Purchase Contract Agent shall have no responsibility with
respect thereto.  The Purchase Contract Agent shall not at any time be under any
duty or responsibility to any Holder of Securities to determine whether any
facts exist which may require any adjustment to the Contract Adjustment
Payments, or with respect to the nature or extent or calculation of any such
adjustment when made, or with respect to the method employed in making the same.

Section 5.3.   [Intentionally omitted.]

Section 5.4.   Payment of Purchase Price.

               (a)  (i) Unless a Holder effects an Early Settlement of the
underlying Purchase Contract in the manner described in Section 5.9, each Holder
of a Corporate PIES who intends to pay in cash to satisfy such Holder's
obligation under the Purchase Contract shall notify the Purchase Contract Agent
by use of a notice in substantially the form of Exhibit E hereto of its
intention to pay in cash ("Cash Settlement") the Purchase Price for the shares
of Common Stock to be purchased pursuant to the related Purchase Contract. Such
notice shall be given prior to 5:00 p.m. (New York City time) on the seventh
Business Day immediately preceding the Purchase Contract Settlement
<PAGE>

                                                                              32

Date. Prior to 11:00 a.m. (New York City time) on the next succeeding Business
Day, the Purchase Contract Agent shall notify the Collateral Agent and the
Indenture Trustee of the receipt of such notices from Holders intending to make
a Cash Settlement.

          (ii)   A Holder of a Corporate PIES who has so notified the Purchase
Contract Agent of its intention to make a Cash Settlement in accordance with
paragraph (a) (i) above shall pay the Purchase Price to the Securities
Intermediary for deposit in the Collateral Account prior to 11:00 a.m. (New York
City time) on the fifth Business Day immediately preceding the Purchase Contract
Settlement Date in lawful money of the United States by certified or cashiers'
check or wire transfer, in each case in immediately available funds payable to
or upon the order of the Securities Intermediary. Any cash received by the
Collateral Agent shall be invested promptly by the Securities Intermediary in
Permitted Investments and paid to the Company on the Purchase Contract
Settlement Date in settlement of the Purchase Contract in accordance with the
terms of this Agreement and the Pledge Agreement. Any funds received by the
Securities Intermediary in respect of the investment earnings from the
investment in such Permitted Investments shall be distributed to the Purchase
Contract Agent when received for payment to the Holder of the related Corporate
PIES on the Purchase Contract Settlement Date.

          (iii)  If a Holder of a Corporate PIES fails to notify the Purchase
Contract Agent of its intention to make a Cash Settlement in accordance with
paragraph (a)(i) above, or does notify the Purchase Contract Agent as provided
in paragraph (a)(i) above of its intention to pay the Purchase Price in cash but
fails to make such payment as required by paragraph (a)(ii) above, such Holder
shall be deemed to have consented to the disposition of the Pledged Senior Notes
pursuant to the Remarketing as described in paragraph (b) below.

          (iv)   Promptly after 3:00 p.m., New York City time, on the fourth
Business Day immediately preceding the Purchase Contract Settlement Date, the
Purchase Contract Agent, based on notices received by the Purchase Contract
Agent pursuant to Section 5.4(a)(i) hereof and notice from the Securities
Intermediary regarding cash received by it prior to such time, shall notify the
Collateral Agent and the Indenture Trustee of the aggregate principal amount of
Senior Notes to be tendered for purchase in the Remarketing in a notice
substantially in the form of Exhibit F hereto.

          (v)    Not later than 15 calendar days nor more than 30 calendar days
prior to the third Business Day immediately preceding the Purchase Contract
Settlement Date, the Company shall request DTC (or any successor Clearing
Agency), to notify the Beneficial Owners or Clearing Agency Participants holding
Corporate PIES of the procedures to be followed by Holders of Corporate PIES who
intend to effect a Cash Settlement on or prior to the fifth Business Day
immediately preceding the Purchase Contract Settlement Date.

          (b)    In order to dispose of the Senior Notes, Corporate PIES Holders
who have not notified the Purchase Contract Agent of their intention to effect a
Cash Settlement as provided in paragraph (a)(i) above, or who have so notified
the Purchase Contract Agent but failed to make such payment as required by
paragraph (a)(ii) above, the Company shall engage Lehman Brothers Inc. (the
"Remarketing Agent") pursuant to the Remarketing Agreement to sell such Senior
Notes. In order to facilitate the Remarketing, the Purchase Contract Agent,
based on the notices specified in Section 5.4(a)(iv), shall notify the
Remarketing Agent, promptly after 3:00 p.m. (New York City time) on the fourth
Business Day immediately preceding the Purchase Contract Settlement Date, of the
aggregate
<PAGE>

                                                                              33

principal amount of Senior Notes that are part of Corporate PIES to be
remarketed. Concurrently, the Collateral Agent, pursuant to the terms of the
Pledge Agreement, shall cause such Senior Notes to be presented to the
Remarketing Agent for Remarketing.

          Upon receipt of such notice from the Purchase Contract Agent and such
Senior Notes, the Remarketing Agent shall, on the third Business Day immediately
preceding the Purchase Contract Settlement Date, use commercially reasonable
efforts to remarket such Senior Notes on such date at a price equal to 100.25%
of the aggregate principal amount of such Senior Notes, as provided in the
Remarketing Agreement. The proceeds from the Remarketing equal to 100% of the
aggregate principal amount of the remarketed Senior Notes shall automatically be
applied by the Collateral Agent, in accordance with the Pledge Agreement, to
satisfy in full such Corporate PIES Holders' obligations to pay the Purchase
Price for the shares of Common Stock under the related Purchase Contracts on the
Purchase Contract Settlement Date. The proceeds equal to .25% of the aggregate
principal amount of the remarketed Senior Notes shall be retained by the
Remarketing Agent for services rendered in connection with the Remarketing (the
"Remarketing Fee").

          If, in spite of using its commercially reasonable efforts, the
Remarketing Agent cannot remarket the related Senior Notes of such Holders of
Corporate PIES at a price of 100.25% of the aggregate principal amount of such
Senior Notes, the Remarketing shall be deemed to have failed (a "Failed
Remarketing") and in accordance with the terms of the Pledge Agreement, the
Collateral Agent, for the benefit of the Company, shall exercise its rights as a
secured party with respect to such Senior Notes, including those actions
specified in paragraph (c) below; provided, that if upon a Failed Remarketing
the Collateral Agent exercises such rights for the benefit of the Company with
respect to such Senior Notes, any accrued and unpaid interest on such Senior
Notes shall become payable by the Company to the Purchase Contract Agent for
payment to the registered owner of the Corporate PIES to which such Senior Notes
relate. The Company shall cause a notice of such Failed Remarketing to be
published no later than the Business Day immediately preceding the Purchase
Contract Settlement Date in a daily newspaper in the English language of general
circulation in The City of New York, which is expected to be The Wall Street
Journal.

          (c)  With respect to any Senior Notes which are subject to a Failed
Remarketing, the Collateral Agent shall exercise, for the benefit of the
Company, all of its rights as a secured party with respect thereto and, subject
to applicable law and paragraph (g) below, may, among other things, (i) retain
the Senior Notes in full satisfaction of the Holders' obligations under the
Purchase Contracts or (ii) sell the Senior Notes in one or more public or
private sales, the proceeds, if any, of any such sale to constitute full
satisfaction of the Holders' obligations under the Purchase Contracts.

          (d)  (i)  Unless a Holder of a Treasury PIES effects an Early
Settlement of the underlying Purchase Contract in the manner described in
Section 5.9, each Holder of a Treasury PIES who intends to pay in cash to
satisfy such Holder's obligation under the Purchase Contract shall notify the
Purchase Contract Agent by use of a notice in substantially the form of Exhibit
E hereto of its intention to pay in cash the Purchase Price for the shares of
Common Stock to be purchased pursuant to the related Purchase Contract. Such
notice shall be given prior to 5:00 p.m. (New York City time) on the second
Business Day immediately preceding the Purchase Contract Settlement Date. Prior
to 11:00 a.m. (New York City time) on the next succeeding Business Day, the
Purchase Contract Agent shall notify the Collateral Agent of the receipt of such
notices from such Holders intending to make a Cash Settlement.
<PAGE>

                                                                              34

          (ii)   A Holder of a Treasury PIES who has so notified the Purchase
Contract Agent of its intention to make a Cash Settlement in accordance with
paragraph (d)(i) above shall pay the Purchase Price to the Securities
Intermediary for deposit in the Collateral Account prior to 11:00 a.m. (New York
City time) on the Business Day immediately preceding the Purchase Contract
Settlement Date in lawful money of the United States by certified or cashiers'
check or wire transfer, in each case in immediately available funds payable to
or upon the order of the Securities Intermediary. Any cash received by the
Collateral Agent shall be invested promptly by the Securities Intermediary in
Permitted Investments and paid to the Company on the Purchase Contract
Settlement Date in settlement of the Purchase Contract in accordance with the
terms of this Agreement and the Pledge Agreement. Any funds received by the
Securities Intermediary in respect of the investment earnings from the
investment in such Permitted Investments shall be distributed to the Purchase
Contract Agent when received for payment to the Holder of the related Treasury
PIES on the Purchase Contract Settlement Date.

          (iii)  If a Holder of a Treasury PIES fails to notify the Purchase
Contract Agent of its intention to make a Cash Settlement in accordance with
paragraph (d)(i) above, or does notify the Purchase Contract Agent as provided
in paragraph (d)(i) above of its intention to pay the Purchase Price in cash but
fails to make such payment as required by paragraph (d)(ii) above, then upon the
maturity of the Pledged Treasury Securities held by the Securities Intermediary
on the Business Day immediately prior to the Purchase Contract Settlement Date,
the principal amount of the Treasury Securities received by the Securities
Intermediary shall be invested promptly in Permitted Investments.

          On the Purchase Contract Settlement Date, an amount equal to the
Purchase Price shall be remitted to the Company as payment thereof without
receiving any instructions from the Holder of the related Treasury PIES. In the
event the sum of the proceeds from the related Pledged Treasury Securities and
the investment earnings earned from such investments is in excess of the
aggregate Purchase Price of the Purchase Contracts being settled thereby, the
Collateral Agent shall cause the Securities Intermediary to distribute such
excess to the Purchase Contract Agent for the benefit of the Holder of the
related Treasury PIES when received.

          (iv)   If a Holder of a Treasury PIES continues to hold the Senior
Note originally part of the Corporate PIES that was converted into the Treasury
PIES, such Holder may elect to have such Senior Note remarketed. A Holder making
such an election must (A) notify the Indenture Trustee prior to 11:00 a.m. (New
York City time) on the fifth Business Day immediately preceding the Purchase
Contract Settlement Date, by use of a notice in substantially the form of
Exhibit G hereto, of the aggregate principal amount of Senior Notes that are not
part of Corporate PIES to be remarketed and (B) concurrently deliver, by book-
entry transfer or other appropriate procedures, to the Indenture Trustee such
Senior Notes to be remarketed. Any such notice will be irrevocable and may not
be conditioned upon the level at which the Reset Rate is established in the
Remarketing. Concurrently, the Indenture Trustee shall cause such Senior Notes
to be presented to the Remarketing Agent for Remarketing.

          (e)    Any distribution to Holders of excess funds and interest
described above shall be payable at the office of the Purchase Contract Agent in
The City of New York maintained for that purpose or, at the option of the
Holder, by check mailed to the address of the Person entitled thereto at such
address as it appears on the Register.
<PAGE>

                                                                              35

               (f)  Upon Cash Settlement of any Purchase Contract:

               (1)  the Collateral Agent will in accordance with the terms of
     the Pledge Agreement cause the Pledged Senior Notes or the Pledged Treasury
     Securities, as the case may be, underlying the relevant Security to be
     released from the Pledge, free and clear of any security interest of the
     Company, and transferred to the Purchase Contract Agent for delivery to the
     Holder thereof or its designee as soon as practicable; and

               (2)  subject to the receipt thereof, the Purchase Contract Agent
     shall, by book-entry transfer or other appropriate procedures, in
     accordance with written instructions provided by the Holder thereof,
     transfer such Senior Notes or such Treasury Securities, as the case may be
     (or, if no such instructions are given to the Purchase Contract Agent by
     the Holder, the Purchase Contract Agent shall hold such Senior Notes or
     such Treasury Securities, as the case may be, and any interest payment
     thereon, in the name of the Purchase Contract Agent or its nominee in trust
     for the benefit of such Holder until the expiration of the time period
     specified in the abandoned property laws of the relevant State) and, in
     connection with such Senior Notes, the Purchase Contract Agent shall have
     no responsibility to vote or take any other consensual action with respect
     thereto.

               (g)  The obligations of the Holders to pay the Purchase Price are
non-recourse obligations and, except to the extent paid by Early Settlement or
Cash Settlement, are payable solely out of the proceeds, if any, of any
Collateral pledged to secure the obligations of the Holders and in no event will
Holders be liable for any deficiency between the proceeds of the disposition of
Collateral and the Purchase Price.

               (h)  The Company shall not be obligated to issue any shares of
Common Stock in respect of a Purchase Contract or deliver any certificates
thereof to the Holder of the related Corporate PIES or Treasury PIES unless the
Company shall have received payments in full for the aggregate purchase price
for the shares of Common Stock to be purchased thereunder in the manner herein
set forth.

Section 5.5.   Issuance of Shares of Common Stock.

               Unless a Termination Event or an Early Settlement shall have
occurred, subject to Section 5.6(b), the Company shall issue and deposit with
the Purchase Contract Agent, for the benefit of the Holders of the Outstanding
Securities, one or more certificates representing the newly issued shares of
Common Stock registered in the name of the Purchase Contract Agent (or its
nominee) as custodian for the Holders (such certificates for shares of Common
Stock, together with any dividends or distributions for which a record date and
payment date for such dividend or distribution has occurred after the Purchase
Contract Settlement Date, being hereinafter referred to as the "Purchase
Contract Settlement Fund") to which the Holders are entitled hereunder.

               Subject to the foregoing, upon surrender of a Certificate to the
Purchase Contract Agent on or after the Purchase Contract Settlement Date,
together with settlement instructions thereon duly completed and executed, the
Holder of such Certificate shall be entitled to receive in exchange therefor a
certificate representing that number of whole shares of Common Stock which such
Holder is entitled to receive pursuant to the provisions of this Article Five
(after taking into
<PAGE>

                                                                              36

account all Securities then held by such Holder), together with cash in lieu of
fractional shares as provided in Section 5.10 and any dividends or distributions
with respect to such shares constituting part of the Purchase Contract
Settlement Fund, but without any interest thereon (or, if such Certificate is
not surrendered to the Purchase Contract Agent or if no such instructions are
given to the Purchase Contract Agent by the Holder, the Purchase Contract Agent
shall hold such Certificate representing shares of Common Stock, cash in lieu of
fractional shares and dividends or distributions, as applicable, in the name of
the Purchase Contract Agent or its nominee in trust for the benefit of such
Holder until the expiration of the time period specified in the abandoned
property laws of the relevant State), and the Certificate so surrendered shall
forthwith be cancelled. Such shares shall be registered in the name of the
Holder or the Holder's designee as specified in the settlement instructions
provided by the Holder to the Purchase Contract Agent. If any shares of Common
Stock issued in respect of a Purchase Contract are to be registered to a Person
other than the Person in whose name the Certificate evidencing such Purchase
Contract is registered, no such registration shall be made unless the Person
requesting such registration has paid any transfer and other taxes required by
reason of such registration in a name other than that of the registered Holder
of the Certificate evidencing such Purchase Contract or has established to the
satisfaction of the Company that such tax either has been paid or is not
payable.

Section 5.6.   Adjustment of Settlement Rate.

               (a)  Adjustments for Dividends, Distributions, Stock Splits, Etc.

               (1)  In case the Company shall pay or make a dividend or other
     distribution on the Common Stock in Common Stock, the Settlement Rate in
     effect at the opening of business on the day following the date fixed for
     the determination of shareholders entitled to receive such dividend or
     other distribution shall be increased by dividing such Settlement Rate by a
     fraction of which:

                    (i)  the numerator shall be the number of shares of Common
               Stock outstanding at the close of business on the date fixed for
               such determination; and

                    (ii) and the denominator shall be the sum of such number of
               shares and the total number of shares constituting such dividend
               or other distribution,

     such increase to become effective immediately after the opening of business
     on the day following the date fixed for such determination. For the
     purposes of this paragraph (1), the number of shares of Common Stock at any
     time outstanding shall not include shares held in the treasury of the
     Company but shall include any shares issuable in respect of any scrip
     certificates issued in lieu of fractions of shares of Common Stock. The
     Company will not pay any dividend or make any distribution on shares of
     Common Stock held in the treasury of the Company.

               (2)  In case the Company shall issue rights, options or warrants
     to all holders of Common Stock (not being available on an equivalent basis
     to Holders of the Securities upon settlement of the Purchase Contracts
     underlying such Securities) entitling them, for a period expiring within 45
     days after the record date for the determination of shareholders entitled
     to receive such rights, options or warrants, to subscribe for or purchase
     shares of Common Stock
<PAGE>

                                                                              37

     at a price per share less than the Current Market Price per share of Common
     Stock on the date fixed for the determination of shareholders entitled to
     receive such rights, options or warrants (other than pursuant to a dividend
     reinvestment plan), the Settlement Rate in effect at the opening of
     business on the day following the date fixed for such determination shall
     be increased by dividing such Settlement Rate by a fraction of which:

               (i)  the numerator shall be the number of shares of Common Stock
          outstanding at the close of business on the date fixed for such
          aggregate of the offering price of the total number of shares of
          Common Stock so offered for subscription or purchase would purchase at
          such Current Market Price; and

               (ii) the denominator shall be the number of shares of Common
          Stock outstanding at the close of business on the date fixed for such
          determination plus the number of shares of Common Stock so offered for
          subscription or purchase,

     such increase to become effective immediately after the opening of business
     on the day following the date fixed for such determination. For the
     purposes of this paragraph (2), the number of shares of Common Stock at any
     time outstanding shall not include shares held in the treasury of the
     Company but shall include any shares issuable in respect of any scrip
     certificates issued in lieu of fractions of shares of Common Stock. The
     Company shall not issue any such rights, options or warrants in respect of
     shares of Common Stock held in the treasury of the Company.

          (3)  In case outstanding shares of Common Stock shall be subdivided or
     split into a greater number of shares of Common Stock, the Settlement Rate
     in effect at the opening of business on the day following the day upon
     which such subdivision or split becomes effective shall be proportionately
     increased, and, conversely, in case outstanding shares of Common Stock
     shall each be combined into a smaller number of shares of Common Stock, the
     Settlement Rate in effect at the opening of business on the day following
     the day upon which such combination becomes effective shall be
     proportionately reduced, such increase or reduction, as the case may be, to
     become effective immediately after the opening of business on the day
     following the day upon which such subdivision, split or combination becomes
     effective.

          (4)  In case the Company shall, by dividend or otherwise, distribute
     to all holders of Common Stock evidences of its indebtedness or assets
     (including securities, but excluding any rights, options or warrants
     referred to in paragraph (2) of this Section 5.6(a), any dividend or
     distribution paid exclusively in cash and any dividend or distribution
     referred to in paragraph (1) of this Section 5.6(a)), the Settlement Rate
     shall be adjusted so that the same shall equal the rate determined by
     dividing the Settlement Rate in effect immediately prior to the close of
     business on the date fixed for the determination of shareholders entitled
     to receive such distribution by a fraction of which:

               (i)  the numerator shall be the Current Market Price per share of
          Common Stock on the date fixed for such determination less the then
          fair market value (as determined by the Board of Directors, whose
          determination shall be conclusive
<PAGE>

                                                                              38

          and described in a Board Resolution) of the portion of the assets or
          evidences of indebtedness so distributed applicable to one share of
          Common Stock; and

               (ii) the denominator shall be such Current Market Price per share
          of Common Stock,

     such adjustment to become effective immediately prior to the opening of
     business on the day following the date fixed for the determination of
     shareholders entitled to receive such distribution. In any case in which
     this paragraph (4) is applicable, paragraph (2) of this Section 5.6(a)
     shall not be applicable.

          (5)  In case the Company shall, by dividend or otherwise, distribute
     to all holders of Common Stock (I) cash (excluding any cash that is
     distributed in a Reorganization Event to which Section 5.6(b) applies or as
     part of a distribution referred to in paragraph (4) of this Section 5.6(a))
     in an aggregate amount that, combined together with the aggregate amount of
     any other distributions to all holders of Common Stock made exclusively in
     cash (other than in connection with a Reorganization Event) within the 12
     months preceding the date of payment of such distribution and in respect of
     which no adjustment pursuant to this paragraph (5) or paragraph (6) of this
     Section has been made and (II) the aggregate of any cash plus the fair
     market value (as determined by the Board of Directors, whose determination
     shall be conclusive and described in a Board Resolution) of consideration
     payable in respect of any tender or exchange offer by the Company or any of
     its subsidiaries for all or any portion of Common Stock concluded within
     the 12 months preceding the date of payment of the distribution described
     in Clause (I) above and in respect of which no adjustment pursuant to this
     paragraph (5) or paragraph (4) or paragraph (6) of this Section 5.6(a) has
     been made, exceeds 15% of the product of the Current Market Price per share
     of Common Stock on the date for the determination of holders of shares of
     Common Stock entitled to receive such distribution times the number of
     shares of Common Stock outstanding on such date, then, and in each such
     case, immediately after the close of business on such date for
     determination, the Settlement Rate shall be increased so that the same
     shall equal the rate determined by dividing the Settlement Rate in effect
     immediately prior to the close of business on the date fixed for
     determination of the shareholders entitled to receive such distribution by
     a fraction of which:

               (i)  the numerator shall be equal to the Current Market Price per
          share of the Common Stock on the date fixed for such determination
          less an amount equal to the quotient of (x) the combined amount
          distributed or payable in the transactions described in clauses (I)
          and (II) above divided by (y) the number of shares of Common Stock
          outstanding on such date for determination; and

               (ii) the denominator shall be equal to the Current Market Price
          per share of Common Stock on such date for determination.

          (6)  In case a tender or exchange offer made by the Company or any
     subsidiary of the Company for all or any portion of Common Stock shall
     expire and such tender or exchange offer (as amended upon the expiration
     thereof) shall require the payment to shareholders (based on the acceptance
     (up to any maximum specified in the terms of the tender or exchange offer)
     of Purchased Shares) of (I) an aggregate consideration having a fair
<PAGE>

                                                                              39

     market value (as determined by the Board of Directors, whose determination
     shall be conclusive and described in a Board Resolution) that combined
     together with the aggregate of the cash plus the fair market value (as
     determined by the Board of Directors, whose determination shall be
     conclusive and described in a Board Resolution), as of the expiration of
     such tender or exchange offer, of consideration payable in respect of any
     other tender or exchange offer, by the Company or any subsidiary of the
     Company for all or any portion of the Common Stock expiring within the 12
     months preceding the expiration of such tender or exchange offer and in
     respect of which no adjustment pursuant to paragraph (5) of this Section
     5.6(a) or this paragraph (6) has been made, and (II) the aggregate amount
     of any distributions to all holders of Common Stock made exclusively in
     cash within the 12 months preceding the expiration of such tender or
     exchange offer and in respect of which no adjustment pursuant to paragraph
     (5) of this Section 5.6(a) or this paragraph (6) has been made, exceeds 15%
     of the product of the Current Market Price per share of Common Stock as of
     the last time (the "Expiration Time") tenders could have been made pursuant
     to such tender or exchange offer (as it may be amended) times the number of
     shares of Common Stock outstanding (including any tendered shares) on the
     Expiration Time, then, and in each such case, immediately prior to the
     opening of business on the day after the date of the Expiration Time, the
     Settlement Rate shall be adjusted so that the same shall equal the rate
     determined by dividing the Settlement Rate immediately prior to the close
     of business on the date of the Expiration Time by a fraction of which:

               (i)  the numerator shall be equal to (A) the product of (1) the
          Current Market Price per share of Common Stock on the date of the
          Expiration Time and (2) the number of shares of Common Stock
          outstanding (including any tendered shares) on the Expiration Time
          less (B) the amount of cash plus the fair market value (determined as
          aforesaid) of the aggregate consideration payable to shareholders
          based on the transactions described in clauses (I) and (II) above
          (assuming in the case of clause (I) the acceptance, up to any maximum
          specified in the terms of the tender or exchange offer, of Purchased
          Shares), and

               (ii) the denominator shall be equal to the product of (A) the
          Current Market Price per share of Common Stock as of the Expiration
          Time and (B) the number of shares of Common Stock outstanding
          (including any tendered shares) as of the Expiration Time less the
          number of all shares validly tendered and not withdrawn as of the
          Expiration Time (the shares deemed so accepted, up to any such
          maximum, being referred to as the "Purchased Shares").

          (7)  The reclassification of Common Stock into securities including
     securities other than Common Stock (other than any reclassification upon a
     Reorganization Event to which Section 5.6(b) applies) shall be deemed to
     involve:

               (a)  a distribution of such securities other than Common Stock to
          all holders of Common Stock (and the effective date of such
          reclassification shall be deemed to be "the date fixed for the
          determination of shareholders entitled to receive such distribution"
          and the "date fixed for such determination" within the meaning of
          paragraph (4) of this Section 5.6(a)); and
<PAGE>

                                                                              40

               (b)  a subdivision, split or combination, as the case may be, of
          the number of shares of Common Stock outstanding immediately prior to
          such reclassification into the number of shares of Common Stock
          outstanding immediately thereafter (and the effective date of such
          reclassification shall be deemed to be "the day upon which such
          subdivision or split becomes effective" or "the day upon which such
          combination becomes effective", as the case may be, and "the day upon
          which such subdivision, split or combination becomes effective" within
          the meaning of paragraph (3) of this Section 5.6(a)).

          (8)  The "Current Market Price" per share of Common Stock on any day
     means the average of the daily Closing Prices for the five consecutive
     Trading Days selected by the Company commencing not more than 30 Trading
     Days before, and ending not later than, the earlier of the day in question
     and the day before the "ex date" with respect to the issuance or
     distribution requiring such computation. For purposes of this paragraph,
     the term "ex date", when used with respect to any issuance or distribution,
     shall mean the first date on which the Common Stock trades regular way on
     such exchange or in such market without the right to receive such issuance
     or distribution.

          (9)  All adjustments to the Settlement Rate shall be calculated to the
     nearest 1/10,000th of a share of Common Stock (or if there is not a nearest
     1/10,000th of a share, to the next lower 1/10,000th of a share). No
     adjustment in the Settlement Rate shall be required unless such adjustment
     would require an increase or decrease of at least one percent thereof;
     provided, however, that any adjustments which by reason of this
     subparagraph are not required to be made shall be carried forward and taken
     into account in any subsequent adjustment. If an adjustment is made to the
     Settlement Rate pursuant to paragraph (1), (2), (3), (4), (5), (6), (7) or
     (10) of this Section 5.6(a), an adjustment shall also be made to the
     Applicable Market Value solely to determine which of clauses (1), (2) or
     (3) of the definition of Settlement Rate in Section 5.1 will apply on the
     Purchase Contract Settlement Date. Such adjustment shall be made by
     multiplying the Applicable Market Value by a fraction of which the
     numerator shall be the Settlement Rate immediately after such adjustment
     pursuant to paragraph (1), (2), (3), (4), (5), (6), (7) or (10) of this
     Section 5.6(a) and the denominator shall be the Settlement Rate immediately
     before such adjustment; provided, however, that if such adjustment to the
     Settlement Rate is required to be made pursuant to the occurrence of any of
     the events contemplated by paragraph (1), (2), (3), (4), (5), (7) or (10)
     of this Section 5.6(a) during the period taken into consideration for
     determining the Applicable Market Value, appropriate and customary
     adjustments shall be made to the Settlement Rate.

          (10) The Company may make such increases in the Settlement Rate, in
     addition to those required by this Section 5.6(a), as it considers to be
     advisable in order to avoid or diminish any income tax to any holders of
     shares of Common Stock resulting from any dividend or distribution of stock
     or issuance of rights, options or warrants to purchase or subscribe for
     stock or from any event treated as such for income tax purposes or for any
     other reason.
<PAGE>

                                                                              41

          (b)  Adjustment for Consolidation, Merger or Other Reorganization
     Event.

          In the event of:

               (i)    any consolidation or merger of the Company with or into
          another Person (other than a merger or consolidation in which the
          Company is the continuing corporation and in which the shares of
          Common Stock outstanding immediately prior to the merger or
          consolidation are not exchanged for cash, securities or other property
          of the Company or another corporation);

               (ii)   any sale, transfer, lease or conveyance to another Person
          of the property of the Company as an entirety or substantially as an
          entirety;

               (iii)  any statutory exchange of securities of the Company with
          another Person (other than in connection with a merger or
          acquisition); or

               (iv)   any liquidation, dissolution or winding up of the Company
          other than as a result of or after the occurrence of a Termination
          Event (any such event, a "Reorganization Event"),

the Settlement Rate will be adjusted to provide that each Holder of Securities
will receive on the Purchase Contract Settlement Date with respect to each
Purchase Contract forming a part thereof, the kind and amount of securities,
cash and other property receivable upon such Reorganization Event (without any
interest thereon, and without any right to dividends or distribution thereon
which have a record date that is prior to the Purchase Contract Settlement Date)
by a Holder of the number of shares of Common Stock issuable on account of each
Purchase Contract if the Purchase Contract Settlement Date had occurred
immediately prior to such Reorganization Event, assuming such Holder of Common
Stock is not a Person with which the Company consolidated or into which the
Company merged or which merged into the Company or to which such sale or
transfer was made, as the case may be (any such Person, a "Constituent Person"),
or an Affiliate of a Constituent Person to the extent such Reorganization Event
provides for different treatment of Common Stock held by Affiliates of the
Company and non-affiliates and such Holder failed to exercise his rights of
election, if any, as to the kind or amount of securities, cash and other
property receivable upon such Reorganization Event (provided that if the kind or
amount of securities, cash and other property receivable upon such
Reorganization Event is not the same for each share of Common Stock held
immediately prior to such Reorganization Event by other than a Constituent
Person or an Affiliate thereof and in respect of which such rights of election
shall not have been exercised ("non-electing share"), then for the purpose of
this Section the kind and amount of securities, cash and other property
receivable upon such Reorganization Event by each non-electing share shall be
deemed to be the kind and amount so receivable per share by a plurality of the
non-electing shares).

          In the event of such a Reorganization Event, the Person formed by such
consolidation, merger or exchange or the Person which acquires the assets of the
Company or, in the event of a liquidation, dissolution or winding up of the
Company, the Company or a liquidating trust created in connection therewith,
shall execute and deliver to the Purchase Contract Agent an agreement
supplemental hereto providing that the Holders of each Outstanding Security
shall have the rights provided by this Section 5.6(b). Such supplemental
agreement shall provide for adjustments which,
<PAGE>

                                                                              42

for events subsequent to the effective date of such supplemental agreement,
shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Section. The above provisions of this Section shall similarly apply
to successive Reorganization Events.

               (c)  All calculations and determinations pursuant to this Section
5.6 shall be made by the Company or its agent and the Purchase Contract Agent
shall have no responsibility with respect thereto.

Section 5.7.   Notice of Adjustments and Certain Other Events.

               (a)  Whenever the Settlement Rate and the Applicable Market Value
are adjusted as herein provided, the Company shall:

               (1)  forthwith compute the adjusted Settlement Rate and
     Applicable Market Value in accordance with Section 5.6 and prepare and
     transmit to the Purchase Contract Agent an Officers' Certificate setting
     forth the Settlement Rate and the Applicable Market Value, the method of
     calculation thereof in reasonable detail, and the facts requiring such
     adjustment and upon which such adjustment is based; and

               (2)  within 10 Business Days following the occurrence of an event
     that requires an adjustment to the Settlement Rate and the Applicable
     Market Value pursuant to Section 5.6 (or if the Company is not aware of
     such occurrence, as soon as practicable after becoming so aware), provide a
     written notice to the Holders of the Securities of the occurrence of such
     event and a statement in reasonable detail setting forth the method by
     which the adjustment to the Settlement Rate and the Applicable Market Value
     was determined and setting forth the adjusted Settlement Rate and
     Applicable Market Value.

               (b)  The Purchase Contract Agent shall not at any time be under
any duty or responsibility to any Holder of Securities to determine whether any
facts exist which may require any adjustment of the Settlement Rate or the
Applicable Market Value, or with respect to the nature or extent or calculation
of any such adjustment when made, or with respect to the method employed in
making the same. The Purchase Contract Agent shall not be accountable with
respect to the validity or value (or the kind or amount) of any shares of Common
Stock, or of any securities or property, which may at the time be issued or
delivered with respect to any Purchase Contract; and the Purchase Contract Agent
makes no representation with respect thereto. The Purchase Contract Agent shall
not be responsible for any failure of the Company to issue, transfer or deliver
any shares of Common Stock pursuant to a Purchase Contract or to comply with any
of the duties, responsibilities or covenants of the Company contained in this
Article.

Section 5.8.   Termination Event; Notice.

               The Purchase Contracts and all obligations and rights of the
Company and the Holders thereunder, including, without limitation, the rights of
the Holders to receive, and the obligations of the Company to pay, Contract
Adjustment Payments and the rights and obligations of Holders to purchase shares
of Common Stock, shall immediately and automatically terminate, without the
necessity of any notice or action by any Holder, the Purchase Contract Agent or
the Company, if, on or prior to the Purchase Contract Settlement Date, a
Termination Event shall have occurred. Upon and after the occurrence of a
Termination Event, the Securities shall thereafter represent the right to
<PAGE>

                                                                              43

receive the Senior Notes forming a part of such Securities in the case of
Corporate PIES, or Treasury Securities in the case of Treasury PIES, in
accordance with the provisions of Section 5.4 of the Pledge Agreement. Upon the
occurrence of a Termination Event, the Company shall promptly but in no event
later than two Business Days thereafter give written notice to the Purchase
Contract Agent, the Collateral Agent and the Holders, at their addresses as they
appear in the Register.

Section 5.9.   Early Settlement.

               (a)  Subject to and upon compliance with the provisions of this
Section 5.9, at the option of the Holder thereof, Purchase Contracts underlying
Securities may be settled early ("Early Settlement") in the case of Corporate
PIES on or prior to the seventh Business Day immediately preceding the Purchase
Contract Settlement Date and in the case of Treasury PIES on or prior to the
second Business Day immediately preceding the Purchase Contract Settlement Date,
in each case, as provided herein. In order to exercise the right to effect Early
Settlement with respect to any Purchase Contracts, the Holder of the Certificate
evidencing Securities shall deliver such Certificate to the Purchase Contract
Agent at the Corporate Trust Office duly endorsed for transfer to the Company or
in blank with the form of Election to Settle Early on the reverse thereof duly
completed and accompanied by payment (payable to the Company in immediately
available funds) in an amount (the "Early Settlement Amount") equal to:

               (1)  the product of (A) the Stated Amount times (B) the number of
     Purchase Contracts with respect to which the Holder has elected to effect
     Early Settlement, plus

               (2)  if such delivery is made with respect to any Purchase
     Contracts during the period from the close of business on any Record Date
     next preceding any Payment Date to the opening of business on such Payment
     Date, an amount equal to the Contract Adjustment Payments payable on such
     Payment Date with respect to such Purchase Contracts.

Except as provided in the immediately preceding sentence and subject to the last
paragraph of Section 5.2, no payment shall be made upon Early Settlement of any
Purchase Contract on account of any Contract Adjustment Payments accrued on such
Purchase Contract or on account of any dividends on the Common Stock issued upon
such Early Settlement. If the foregoing requirements are first satisfied with
respect to Purchase Contracts underlying any Securities at or prior to 5:00 p.m.
(New York City time) on a Business Day, such day shall be the "Early Settlement
Date" with respect to such Securities and if such requirements are first
satisfied after 5:00 p.m. (New York City time) on a Business Day or on a day
that is not a Business Day, the "Early Settlement Date" with respect to such
Securities shall be the next succeeding Business Day.

               Upon the receipt of such Certificate and Early Settlement Amount
from the Holder, the Purchase Contract Agent shall pay to the Company such Early
Settlement Amount, the receipt of which payment the Company shall confirm in
writing. The Purchase Contract Agent shall then, in accordance with Section 5.6
of the Pledge Agreement, notify the Collateral Agent that (A) such Holder has
elected to effect an Early Settlement, which notice shall set forth the number
of such Purchase Contracts as to which such Holder has elected to effect Early
Settlement, (B) the Purchase Contract Agent has received from such Holder, and
paid to the Company as confirmed in writing by the Company, the related Early
Settlement Amount and (C) all conditions to such Early Settlement have been
satisfied.
<PAGE>

                                                                              44

               (b)  Upon Early Settlement of Purchase Contracts by a Holder of
the related Securities, the Company shall issue, and the Holder shall be
entitled to receive, 0.8170 shares of Common Stock on account of each Purchase
Contract as to which Early Settlement is effected (the "Early Settlement Rate").
The Early Settlement Rate shall be adjusted in the same manner and at the same
time as the Settlement Rate is adjusted.

               (c)  No later than the third Business Day after the applicable
Early Settlement Date, the Company shall cause:

               (1)  the shares of Common Stock issuable upon Early Settlement of
     Purchase Contracts to be issued and delivered, together with payment in
     lieu of any fraction of a share, as provided in Section 5.10; and

               (2)  the related Senior Notes, in the case of Corporate PIES, or
     the related Treasury Securities, in the case of Treasury PIES, to be
     released from the Pledge by the Collateral Agent and transferred, in each
     case, to the Purchase Contract Agent for delivery to the Holder thereof or
     its designee.

               (d)  Upon Early Settlement of any Purchase Contracts, and subject
to receipt of shares of Common Stock from the Company and the Senior Notes or
Treasury Securities, as the case may be, from the Securities Intermediary, as
applicable, the Purchase Contract Agent shall, in accordance with the
instructions provided by the Holder thereof on the applicable form of Election
to Settle Early on the reverse of the Certificate evidencing the related
Securities:

               (1)  transfer to the Holder the Senior Notes or Treasury
     Securities, as the case may be, forming a part of such Securities, and

               (2)  deliver to the Holder a certificate or certificates for the
     full number of shares of Common Stock issuable upon such Early Settlement,
     together with payment in lieu of any fraction of a share, as provided in
     Section 5.10.

               (e)  In the event that Early Settlement is effected with respect
to Purchase Contracts underlying less than all the Securities evidenced by a
Certificate, upon such Early Settlement the Company shall execute and the
Purchase Contract Agent shall execute on behalf of the Holder, authenticate and
deliver to the Holder thereof, at the expense of the Company, a Certificate
evidencing the Securities as to which Early Settlement was not effected.

               (f)  If a Holder of a Corporate PIES effected Early Settlement
but continues to hold the Senior Note originally part of the Corporate PIES,
such Holder may elect to have such Senior Note remarketed. In addition, if a
Holder of a Treasury PIES effected Early Settlement but continues to hold the
Senior Note originally part of the Corporate PIES that was converted into the
Treasury PIES, such Holder may elect to have such Senior Note remarketed. A
Holder making such an election must (A) notify the Indenture Trustee prior to
11:00 a.m. (New York City time) on the fifth Business Day immediately preceding
the Purchase Contract Settlement Date, by use of a notice in substantially the
form of Exhibit G hereto, of the aggregate principal amount of Senior Notes that
are not part of PIES or Treasury PIES, as the case may be, to be remarketed and
(B) concurrently deliver, by book-entry transfer or other appropriate
procedures, to the Indenture Trustee such Senior Notes to be remarketed. Any
such notice will be irrevocable and may not be conditioned upon the level at
<PAGE>

                                                                              45

which the Reset Rate is established in the Remarketing. Concurrently, the
Indenture Trustee shall cause such Senior Notes to be presented to the
Remarketing Agent for Remarketing.

Section 5.10.  No Fractional Shares.

               No fractional shares or scrip representing fractional shares of
Common Stock shall be issued or delivered upon settlement on the Purchase
Contract Settlement Date or upon Early Settlement of any Purchase Contracts. If
Certificates evidencing more than one Purchase Contract shall be surrendered for
settlement at one time by the same Holder, the number of full shares of Common
Stock which shall be delivered upon settlement shall be computed on the basis of
the aggregate number of Purchase Contracts evidenced by the Certificates so
surrendered. Instead of any fractional share of Common Stock which would
otherwise be deliverable upon settlement of any Purchase Contracts on the
Purchase Contract Settlement Date or upon Early Settlement, the Company, through
the Purchase Contract Agent, shall make a cash payment in respect of such
fractional interest in an amount equal to the value of such fractional shares
times the Applicable Market Value. The Company shall provide the Purchase
Contract Agent from time to time with sufficient funds to permit the Purchase
Contract Agent to make all cash payments required by this Section 5.10 in a
timely manner. Promptly after the calculation of the Applicable Market Value,
the Company shall give the Purchase Contract Agent notice thereof. All
calculations and determinations of the Applicable Market Value shall be made by
the Company or its agent and the Purchase Contract Agent shall have no
responsibility with respect thereto.

Section 5.11.  Charges and Taxes.

               The Company will pay all stock transfer and similar taxes
attributable to the initial issuance and delivery of the shares of Common Stock
pursuant to the Purchase Contracts; provided, however, that the Company shall
not be required to pay any such tax or taxes which may be payable in respect of
any exchange of or substitution for a Certificate evidencing a Security or any
issuance of a share of Common Stock in a name other than that of the registered
Holder of a Certificate surrendered in respect of the Securities evidenced
thereby, other than in the name of the Purchase Contract Agent, as custodian for
such Holder, and the Company shall not be required to issue or deliver such
share certificates or Certificates unless the Person or Persons requesting the
transfer or issuance thereof shall have paid to the Company the amount of such
tax or shall have established to the satisfaction of the Company that such tax
has been paid.

                                  ARTICLE VI

                                   Remedies

Section 6.1.   Unconditional Right of Holders to Receive Contract Adjustment
Payments and to Purchase Shares of Common Stock

               Each Holder of Corporate PIES or Treasury PIES shall have the
right, which is absolute and unconditional, (1) (subject to the payment by such
Holder of Contract Adjustment Payments pursuant to Section 5.9(a)), to receive
each Contract Adjustment Payment with respect to the Purchase Contract
constituting a part of such Security on the respective Payment Date for such
Security and (2) to purchase shares of Common Stock pursuant to such Purchase
Contract and, in
<PAGE>

                                                                              46

each such case, to institute suit for the enforcement of any such Contract
Adjustment Payment and right to purchase shares of Common Stock, and such rights
shall not be impaired without the consent of such Holder.

Section 6.2.   Restoration of Rights and Remedies.

               If any Holder has instituted any proceeding to enforce any right
or remedy under this Agreement and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to such Holder, then
and in every such case, subject to any determination in such proceeding, the
Company and such Holder shall be restored severally and respectively to their
former positions hereunder and thereafter all rights and remedies of such Holder
shall continue as though no such proceeding had been instituted.

Section 6.3.   Rights and Remedies Cumulative.

               Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Certificates in the last
paragraph of Section 3.10, no right or remedy herein conferred upon or reserved
to the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

Section 6.4.   Delay or Omission Not Waiver.

               No delay or omission of any Holder to exercise any right or
remedy upon a default shall impair any such right or remedy or constitute a
waiver of any such right. Every right and remedy given by this Article or by law
to the Holders may be exercised from time to time, and as often as may be deemed
expedient, by such Holders.

Section 6.5.   Undertaking for Costs.

               All parties to this Agreement agree, and each Holder of Corporate
PIES or Treasury PIES, by its acceptance of such Corporate PIES or Treasury
PIES, shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this
Agreement, or in any suit against the Purchase Contract Agent for any action
taken, suffered or omitted by it as Purchase Contract Agent, the filing by any
party litigant in such suit of an undertaking to pay the costs of such suit, and
that such court may in its discretion assess reasonable costs, including
reasonable attorneys' fees and expenses, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; provided that the provisions of this Section shall
not apply to any suit instituted by the Company, to any suit instituted by the
Purchase Contract Agent, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% of the Outstanding Securities,
or to any suit instituted by any Holder for the enforcement of interest payable
on any Senior Notes or Contract Adjustment Payments on any Purchase Contract on
or after the respective Payment Date therefor in respect of any Security held by
such Holder, or for enforcement of the right to purchase shares of Common Stock
under the Purchase Contracts constituting part of any Security held by such
Holder.
<PAGE>

                                                                              47

Section 6.6.   Waiver of Stay or Extension Laws.

               The Company covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Agreement; and the Company expressly waives (to the
extent that it may lawfully do so) all benefit or advantage of any such law and
covenants that it will not hinder, delay or impede the execution of any power
herein granted to the Purchase Contract Agent or the Holders, but will suffer
and permit the execution of every such power as though no such law had been
enacted.

                                  ARTICLE VII

                          The Purchase Contract Agent

Section 7.1.  Certain Duties and Responsibilities.

               (a)  The Purchase Contract Agent:

               (1)  undertakes to perform, with respect to the Securities, such
     duties and only such duties as are specifically set forth in this Agreement
     and the Pledge Agreement, and no implied covenants or obligations shall be
     read into this Agreement or the Pledge Agreement against the Purchase
     Contract Agent; and

               (2)  in the absence of bad faith or negligence on its part, may
     conclusively rely, as to the truth of the statements and the correctness of
     the opinions expressed therein, upon certificates or opinions furnished to
     the Purchase Contract Agent and conforming to the requirements of this
     Agreement or the Pledge Agreement, as applicable, but in the case of any
     certificates or opinions which by any provision hereof are specifically
     required to be furnished to the Purchase Contract Agent, the Purchase
     Contract Agent shall be under a duty to examine the same to determine
     whether or not they conform to the requirements of this Agreement or the
     Pledge Agreement, as applicable, but shall have no duty to confirm or
     investigate the accuracy of mathematical calculations or other facts stated
     therein.

               (b)  No provision of this Agreement or the Pledge Agreement shall
be construed to relieve the Purchase Contract Agent from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

               (1)  this Subsection shall not be construed to limit the effect
     of Subsection (a) of this Section;

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

               (3)  no provision of this Agreement or the Pledge Agreement shall
     require the Purchase Contract Agent to expend or risk its own funds or
     otherwise incur any financial liability in the performance of any of its
     duties hereunder, or in the exercise of any of its rights
<PAGE>

                                                                              48

     or powers, if it shall have reasonable grounds for believing that adequate
     indemnity is not provided to it.

               (c)  Whether or not therein expressly so provided, every
provision of this Agreement and the Pledge Agreement relating to the conduct or
affecting the liability of or affording protection to the Purchase Contract
Agent shall be subject to the provisions of this Section.

               (d) The Purchase Contract Agent is authorized to execute and
deliver the Pledge Agreement in its capacity as Purchase Contract Agent.

Section 7.2.   Notice of Default.

               Within 30 days after the occurrence of any default by the Company
hereunder of which a Responsible Officer of the Purchase Contract Agent has
actual knowledge, the Purchase Contract Agent shall transmit by mail to the
Company and the Holders of Securities, as their names and addresses appear in
the Register, notice of such default hereunder, unless such default shall have
been cured or waived.

Section 7.3.   Certain Rights of Purchase Contract Agent.

               Subject to the provisions of Section 7.1:

               (1)  the Purchase Contract Agent may rely and shall be protected
     in acting or refraining from acting upon any resolution, certificate,
     statement, instrument, opinion, report, notice, request, direction,
     consent, order, bond, debenture, note, other evidence of indebtedness or
     other paper or document believed by it to be genuine and to have been
     signed or presented by the proper party or parties;

               (2)  any request or direction of the Company mentioned herein
     shall be sufficiently evidenced by an Officers' Certificate, Issuer Order
     or Issuer Request, and any resolution of the Board of Directors of the
     Company may be sufficiently evidenced by a Board Resolution;

               (3)  whenever in the administration of this Agreement or the
     Pledge Agreement the Purchase Contract Agent shall deem it desirable that a
     matter be proved or established prior to taking, suffering or omitting any
     action hereunder, the Purchase Contract Agent (unless other evidence be
     herein specifically prescribed) may, in the absence of bad faith on its
     part, rely upon an Officers' Certificate of the Company;

               (4)  the Purchase Contract Agent may consult with counsel and
     the written advice of such counsel or any Opinion of Counsel shall be full
     and complete authorization and protection in respect of any action taken,
     suffered or omitted by it hereunder in good faith and in reliance thereon;

               (5)  the Purchase Contract Agent shall not be bound to make any
     investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document, but the Purchase Contract Agent,
     in its discretion, may make reasonable further inquiry or investigation
     into such facts or matters related to the
<PAGE>

                                                                              49

     execution, delivery and performance of the Purchase Contracts as it may see
     fit, and, if the Purchase Contract Agent shall determine to make such
     further inquiry or investigation, it shall be given a reasonable
     opportunity to examine the books, records and premises of the Company,
     personally or by agent or attorney; and

               (6)  the Purchase Contract Agent may execute any of the powers
     hereunder or perform any duties hereunder either directly or by or through
     agents or attorneys or an Affiliate and the Purchase Contract Agent shall
     not be responsible for any misconduct or negligence on the part of any
     agent or attorney or an Affiliate appointed with due care by it hereunder.

Section 7.4.   Not Responsible for Recitals or Issuance of Securities.

               The recitals contained herein shall be taken as the statements of
the Company, and the Purchase Contract Agent assumes no responsibility for their
accuracy. The Purchase Contract Agent makes no representations as to the
validity or sufficiency of either this Agreement or of the Securities, or of the
Pledge Agreement or the Pledge. The Purchase Contract Agent shall not be
accountable for the use or application by the Company of the proceeds in respect
of the Purchase Contracts.

Section 7.5.   May Hold Securities.

               Any Registrar or any other agent of the Company, or the Purchase
Contract Agent and its Affiliates, in their individual or any other capacity,
may become the owner or pledgee of Securities and may otherwise deal with the
Company, the Collateral Agent or any other Person with the same rights it would
have if it were not Registrar or such other agent, or the Purchase Contract
Agent.

Section 7.6.   Money Held in Custody.

               Money held by the Purchase Contract Agent in custody hereunder
need not be segregated from the other funds except to the extent required by law
or provided herein. The Purchase Contract Agent shall be under no obligation to
invest or pay interest on any money received by it hereunder except as otherwise
agreed in writing with the Company.

Section 7.7.   Compensation and Reimbursement.

               The Company agrees:

               (1)  to pay to the Purchase Contract Agent compensation for all
     services rendered by it hereunder and under the Pledge Agreement as the
     Company and the Purchase Contact Agent shall from time to time agree;

               (2)  except as otherwise expressly provided for herein, to
     reimburse the Purchase Contract Agent upon its request for all reasonable
     expenses, disbursements and advances incurred or made by the Purchase
     Contract Agent in accordance with any provision of this Agreement and the
     Pledge Agreement (including the reasonable compensation and the expenses
     and disbursements of its agents and counsel), except any such expense,
     disbursement or advance as may be attributable to its negligence or bad
     faith; and
<PAGE>

                                                                              50

               (3)  to indemnify the Purchase Contract Agent and any predecessor
     Purchase Contract Agent for, and to hold it harmless against, any loss,
     liability or expense incurred without negligence or bad faith on its part,
     arising out of or in connection with the acceptance or administration of
     its duties hereunder, including the costs and expenses of defending itself
     against any claim or liability in connection with the exercise or
     performance of any of its powers or duties hereunder.

               The obligations of the Company under this Section 7.7 shall
survive the termination of this Agreement.

Section 7.8.   Corporate Purchase Contract Agent Required; Eligibility.

               There shall at all times be a Purchase Contract Agent hereunder
which shall be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers, having (or being
a member of a bank holding company having) a combined capital and surplus of at
least $50,000,000, subject to supervision or examination by Federal or State
authority and having a corporate trust office in the Borough of Manhattan, The
City of New York, if there be such a corporation in the Borough of Manhattan,
The City of New York, eligible under this Article and willing to act on
reasonable terms. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Purchase Contract Agent shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.

Section 7.9.   Resignation and Removal; Appointment of Successor.

               (a)  No resignation or removal of the Purchase Contract Agent and
no appointment of a successor Purchase Contract Agent pursuant to this Article
shall become effective until the acceptance of appointment by the successor
Purchase Contract Agent in accordance with the applicable requirements of
Section 7.10.

               (b)  The Purchase Contract Agent may resign at any time by giving
written notice thereof to the Company 60 days prior to the effective date of
such resignation. If the instrument of acceptance by a successor Purchase
Contract Agent required by Section 7.10 shall not have been delivered to the
Purchase Contract Agent within 30 days after the giving of such notice of
resignation, the resigning Purchase Contract Agent may petition, at the expense
of the Company, any court of competent jurisdiction for the appointment of a
successor Purchase Contract Agent.

               (c)  The Purchase Contract Agent may be removed at any time by
Act of the Holders of a majority in number of the Outstanding Securities
delivered to the Purchase Contract Agent and the Company. If the instrument of
acceptance by a successor Purchaser Contract Agent required by Section 7.10
shall not have been delivered to the Purchase Contract Agent within 30 days
after such removal, the Purchase Contract Agent being removed may petition, at
the expense of the
<PAGE>

                                                                              51

Company, any court of competent jurisdiction for the appointment of a successor
Purchase Contract Agent.

               (d)  If at any time:

               (1)  the Purchase Contract Agent shall cease to be eligible under
     Section 7.8 and shall fail to resign after written request therefor by the
     Company or by any such Holder; or

               (2)  the Purchase Contract Agent shall become incapable of acting
     or shall be adjudged a bankrupt or insolvent or a receiver of the Purchase
     Contract Agent or of its property shall be appointed or any public officer
     shall take charge or control of the Purchase Contract Agent or of its
     property or affairs for the purpose of rehabilitation, conservation or
     liquidation,

then, in any such case, (i) the Company by a Board Resolution may remove the
Purchase Contract Agent, or (ii) any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others
similarly situated, petition, at the expense of the Company, any court of
competent jurisdiction for the removal of the Purchase Contract Agent and the
appointment of a successor Purchase Contract Agent.

               (e)  If the Purchase Contract Agent shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of
Purchase Contract Agent for any cause, the Company, by a Board Resolution, shall
promptly appoint a successor Purchase Contract Agent and shall comply with the
applicable requirements of Section 7.10. If no successor Purchase Contract Agent
shall have been so appointed by the Company and accepted appointment in the
manner required by Section 7.10, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of itself and all others
similarly situated, petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor Purchase Contract
Agent.

               (f)  The Company shall give, or shall cause such successor
Purchase Contract Agent to give, notice of each resignation and each removal of
the Purchase Contract Agent and each appointment of a successor Purchase
Contract Agent by mailing written notice of such event by first-class mail,
postage prepaid, to all Holders as their names and addresses appear in the
applicable Register. Each notice shall include the name of the successor
Purchase Contract Agent and the address of its Corporate Trust Office.

Section 7.10.  Acceptance of Appointment by Successor.

               (a)  In case of the appointment hereunder of a successor Purchase
Contract Agent, every such successor Purchase Contract Agent so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Purchase
Contract Agent an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Purchase Contract Agent shall become
effective and such successor Purchase Contract Agent, without any further act,
deed or conveyance, shall become vested with all the rights, powers, agencies
and duties of the retiring Purchase Contract Agent; but, on the request of the
Company or the successor Purchase Contract Agent, such retiring Purchase
Contract Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Purchase Contract Agent all the
rights, powers and trusts
<PAGE>

                                                                              52

of the retiring Purchase Contract Agent and shall duly assign, transfer and
deliver to such successor Purchase Contract Agent all property and money held by
such retiring Purchase Contract Agent hereunder.

               (b)  Upon request of any such successor Purchase Contract Agent,
the Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Purchase Contract Agent all such
rights, powers and agencies referred to in paragraph (a) of this Section.

               (c)  No successor Purchase Contract Agent shall accept its
appointment unless at the time of such acceptance such successor Purchase
Contract Agent shall be eligible under this Article.

Section 7.11.  Merger, Conversion, Consolidation or Succession to Business.

               Any corporation into which the Purchase Contract Agent may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Purchase
Contract Agent shall be a party, or any corporation succeeding to all or
substantially all the corporate trust business of the Purchase Contract Agent,
shall be the successor of the Purchase Contract Agent hereunder, provided such
corporation shall be otherwise eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto. In case any Certificates shall have been authenticated and
executed on behalf of the Holders, but not delivered, by the Purchase Contract
Agent then in office, any successor by merger, conversion or consolidation to
such Purchase Contract Agent may adopt such authentication and execution and
deliver the Certificates so authenticated and executed with the same effect as
if such successor Purchase Contract Agent had itself authenticated and executed
such Securities.

Section 7.12.  Preservation of Information; Communications to Holders.

               (a)  The Purchase Contract Agent shall preserve, in as current a
form as is reasonably practicable, the names and addresses of Holders received
by the Purchase Contract Agent in its capacity as Registrar.

               (b)  If three or more Holders (herein referred to as
"applicants") apply in writing to the Purchase Contract Agent, and furnish to
the Purchase Contract Agent reasonable proof that each such applicant has owned
a Security for a period of at least six months preceding the date of such
application, and such application states that the applicants desire to
communicate with other Holders with respect to their rights under this Agreement
or under the Securities and is accompanied by a copy of the form of proxy or
other communication which such applicants propose to transmit, then the Purchase
Contract Agent shall mail to all the Holders copies of the form of proxy or
other communication which is specified in such request, with reasonable
promptness after a tender to the Purchase Contract Agent of the materials to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of such mailing.

Section 7.13.  No Obligations of Purchase Contract Agent.
<PAGE>

                                                                              53

               Except to the extent otherwise expressly provided in this
Agreement, the Purchase Contract Agent assumes no obligations and shall not be
subject to any liability under this Agreement, the Pledge Agreement or any
Purchase Contract in respect of the obligations of the Holder of any Security
thereunder. The Company agrees, and each Holder of a Certificate, by his
acceptance thereof, shall be deemed to have agreed, that the Purchase Contract
Agent's execution of the Certificates on behalf of the Holders shall be solely
as agent and attorney-in-fact for the Holders, and that the Purchase Contract
Agent shall have no obligation to perform such Purchase Contracts on behalf of
the Holders, except to the extent expressly provided in Article Five hereof.
Anything contained in this Agreement to the contrary notwithstanding, in no
event shall the Purchase Contract Agent or its officers, employees or agents be
liable for indirect, special, punitive, or consequential loss or damage of any
kind whatsoever, including, but not limited to, lost profits, whether or not the
likelihood of such loss or damage was known to the Purchase Contract Agent and
regardless of the form of action.

Section 7.14.  Tax Compliance.

               (a)  The Company will comply with all applicable certification,
information reporting and withholding (including "backup" withholding)
requirements imposed by applicable tax laws, regulations or administrative
practice with respect to (i) any payments made with respect to the Securities or
(ii) the issuance, delivery, holding, transfer, redemption or exercise of rights
under the Securities. Such compliance shall include, without limitation, the
preparation and timely filing of required returns and the timely payment of all
amounts required to be withheld to the appropriate taxing authority or its
designated agent.

               (b)  The Purchase Contract Agent shall comply in accordance with
the terms hereof with any written direction received from the Company with
respect to the execution or certification of any required documentation and the
application of such requirements to particular payments or Holders or in other
particular circumstances, and may for purposes of this Agreement rely on any
such direction in accordance with the provisions of Section 7.1(a)(2) hereof.

               (c)  The Purchase Contract Agent shall maintain all appropriate
records documenting compliance with such requirements, and shall make such
records available, on written request, to the Company or its authorized
representative within a reasonable period of time after receipt of such request.

                                 ARTICLE VIII

                            Supplemental Agreements

Section 8.1.   Supplemental Agreements Without Consent of Holders.

               Without the consent of any Holders, the Company, when authorized
by a Board Resolution, and the Purchase Contract Agent, at any time and from
time to time, may enter into one or more agreements supplemental hereto, in form
satisfactory to the Company and the Purchase Contract Agent, to:

               (1)  evidence the succession of another Person to the Company,
     and the assumption by any such successor of the covenants of the Company
     herein and in the Certificates;
<PAGE>

                                                                              54

               (2)  evidence and provide for the acceptance of appointment
     hereunder by a successor Purchase Contract Agent;

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

               (4)  make provision with respect to the rights of Holders
     pursuant to the requirements of Section 5.6(b); or

               (5)  except as provided for in Section 5.6, cure any ambiguity,
     correct or supplement any provisions herein which may be inconsistent with
     any other provisions herein, or make any other provisions with respect to
     such matters or questions arising under this Agreement, provided such
     action shall not adversely affect the interests of the Holders.

Section 8.2.   Supplemental Agreements With Consent of Holders.

               With the consent of the Holders of not less than a majority of
the outstanding Purchase Contracts voting together as one class, by Act of said
Holders delivered to the Company and the Purchase Contract Agent, the Company,
when authorized by a Board Resolution, and the Purchase Contract Agent may enter
into an agreement or agreements supplemental hereto for the purpose of modifying
in any manner the terms of the Purchase Contracts, or the provisions of this
Agreement or the rights of the Holders in respect of the Securities; provided,
however, that, except as contemplated herein, no such supplemental agreement
shall, without the unanimous consent of the Holders of each outstanding Purchase
Contract affected thereby,

               (1)  change any Payment Date;

               (2)  change the amount or the type of Collateral required to be
     Pledged to secure a Holder's obligations under the Purchase Contract,
     impair the right of the Holder of any Purchase Contract to receive interest
     on the related Collateral or otherwise adversely affect the Holder's rights
     in or to such Collateral;

               (3)  reduce Contract Adjustment Payments or change any place
     where, or the coin or currency in which, Contract Adjustment Payments are
     payable;

               (4)  impair the right to institute suit for the enforcement of
     any Purchase Contract;

               (5)  reduce the number of shares of Common Stock to be purchased
     pursuant to any Purchase Contract, increase the price to purchase shares of
     Common Stock upon settlement of any Purchase Contract, change the Purchase
     Contract Settlement Date or otherwise adversely affect the Holder's rights
     under any Purchase Contract; or

               (6)  reduce the percentage of the outstanding Purchase Contracts
     the consent of whose Holders is required for any such supplemental
     agreement;

provided that if any amendment or proposal referred to above would adversely
affect only the Corporate PIES or the Treasury PIES, then only the affected
class of Holder as of the record date, if any, for the Holders entitled to vote
thereon or consent thereto will be entitled to vote or consent on
<PAGE>

                                                                              55

such amendment or proposal, and such amendment or proposal shall not be
effective except with the vote or consent of Holders of not less than a majority
of such class; and provided, further, that the unanimous consent of the Holders
of each outstanding Purchase Contract of the related Corporate PIES or Treasury
PIES, as the case may be, shall be required to approve any amendment or proposal
specified in clauses (1) through (6) above.

               It shall not be necessary for any Act of Holders under this
Section to approve the particular form of any proposed supplemental agreement,
but it shall be sufficient if such Act shall approve the substance thereof.

Section 8.3.   Execution of Supplemental Agreements.

               In executing, or accepting the additional agencies created by,
any supplemental agreement permitted by this Article or the modifications
thereby of the agencies created by this Agreement, the Purchase Contract Agent
shall be entitled to receive, and (subject to Section 7.1) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental agreement is authorized or permitted by this Agreement. The
Purchase Contract Agent may, but shall not be obligated to, enter into any such
supplemental agreement which affects the Purchase Contract Agent's own rights,
duties or immunities under this Agreement or otherwise.

Section 8.4.   Effect of Supplemental Agreements.

               Upon the execution of any supplemental agreement under this
Article, this Agreement shall be modified in accordance therewith, and such
supplemental agreement shall form a part of this Agreement for all purposes; and
every Holder of Certificates theretofore or thereafter authenticated, executed
on behalf of the Holders and delivered hereunder, shall be bound thereby.

Section 8.5.   Reference to Supplemental Agreements.

               Certificates authenticated, executed on behalf of the Holders and
delivered after the execution of any supplemental agreement pursuant to this
Article may, and shall if required by the Purchase Contract Agent, bear a
notation in form approved by the Purchase Contract Agent as to any matter
provided for in such supplemental agreement. If the Company shall so determine,
new Certificates so modified as to conform, in the opinion of the Purchase
Contract Agent and the Company, to any such supplemental agreement may be
prepared and executed by the Company and authenticated, executed on behalf of
the Holders and delivered by the Purchase Contract Agent in exchange for
Outstanding Certificates.

                                  ARTICLE IX

               Merger, Consolidation, Share Exchange, Sale or Conveyance

Section 9.1.   Covenant Not to Merge, Consolidate, Enter into a Share Exchange,
               Sell or Convey Property Except Under Certain Conditions.

               The Company covenants that it will not merge, consolidate or
enter into a share exchange with any other Person or sell, assign, transfer,
lease or convey all or substantially all of its
<PAGE>

                                                                              56

properties and assets to any Person or group of affiliated Persons in one
transaction or a series of related transactions, unless:

               (1)  either the Company shall be the continuing corporation, or
     the successor (if other than the Company) shall be a corporation organized
     and existing under the laws of the United States of America or a State
     thereof or the District of Columbia and such corporation shall expressly
     assume all the obligations of the Company under the Purchase Contracts,
     this Agreement and the Pledge Agreement by one or more supplemental
     agreements in form reasonably satisfactory to the Purchase Contract Agent
     and the Collateral Agent, executed and delivered to the Purchase Contract
     Agent and the Collateral Agent by such corporation; and

               (2)  the Company or such successor corporation, as the case may
     be, shall not, immediately after such merger, consolidation or share
     exchange, or such sale, assignment, transfer, lease or conveyance, be in
     default in the performance of any covenant or condition hereunder, under
     any of the Securities or under the Pledge Agreement.

Section 9.2.   Rights and Duties of Successor Corporation.

               In case of any such merger, consolidation, share exchange, sale,
assignment, transfer, lease or conveyance and upon any such assumption by a
successor corporation in accordance with Section 9.1, such successor corporation
shall succeed to and be substituted for the Company with the same effect as if
it had been named herein as the Company. Such successor corporation thereupon
may cause to be signed, and may issue either in its own name or in the name of
Dominion Resources, Inc., any or all of the Certificates evidencing Securities
issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Purchase Contract Agent; and, upon the order of such
successor corporation, instead of the Company, and subject to all the terms,
conditions and limitations in this Agreement prescribed, the Purchase Contract
Agent shall authenticate and execute on behalf of the Holders and deliver any
Certificates which previously shall have been signed and delivered by the
officers of the Company to the Purchase Contract Agent for authentication and
execution, and any Certificate evidencing Securities which such successor
corporation thereafter shall cause to be signed and delivered to the Purchase
Contract Agent for that purpose. All the Certificates issued shall in all
respects have the same legal rank and benefit under this Agreement as the
Certificates theretofore or thereafter issued in accordance with the terms of
this Agreement as though all of such Certificates had been issued at the date of
the execution hereof.

               In case of any such merger, consolidation, share exchange, sale,
assignment, transfer, lease or conveyance such change in phraseology and form
(but not in substance) may be made in the Certificates evidencing Securities
thereafter to be issued as may be appropriate.

Section 9.3.   Officers' Certificate and Opinion of Counsel Given to Purchase
Contract Agent.

               The Purchase Contract Agent, subject to Sections 7.1 and 7.3,
shall receive an Officers' Certificate and an Opinion of Counsel as conclusive
evidence that any such merger, consolidation, share exchange, sale, assignment,
transfer, lease or conveyance, and any such assumption, complies with the
provisions of this Article and that all conditions precedent to the consummation
of any such merger, consolidation, share exchange, sale, assignment, transfer,
lease or conveyance have been met.
<PAGE>

                                                                              57

                                   ARTICLE X

                                   Covenants

Section 10.1.  Performance Under Purchase Contracts.

               The Company covenants and agrees for the benefit of the Holders
from time to time of the Securities that it will duly and punctually perform its
obligations under the Purchase Contracts in accordance with the terms of the
Purchase Contracts and this Agreement.

Section 10.2.  Maintenance of Office or Agency.

               The Company will maintain in the Borough of Manhattan, The City
of New York an office or agency where Certificates may be:

               (1) presented or surrendered for acquisition of shares of Common
     Stock upon settlement of the Purchase Contracts on the Purchase Contract
     Settlement Date or Early Settlement and for transfer of Collateral upon
     occurrence of a Termination Event;

               (2) surrendered for registration of transfer or exchange, for a
     Collateral Substitution or re-establishment of a Corporate PIES; and

and where notices and demands to or upon the Company in respect of the
Securities and this Agreement may be served. The Company will give prompt
written notice to the Purchase Contract Agent of the location, and any change in
the location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the
Purchase Contract Agent with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office, and the Company hereby appoints the Purchase Contract Agent as its agent
to receive all such presentations, surrenders, notices and demands.

               The Company may also from time to time designate one or more
other offices or agencies where Certificates may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, The City of New York for such purposes. The Company will
give prompt written notice to the Purchase Contract Agent of any such
designation or rescission and of any change in the location of any such other
office or agency. The Company hereby designates as the place of payment for the
Securities the Corporate Trust Office and appoints the Purchase Contract Agent
at its Corporate Trust Office as paying agent in such city.

Section 10.3.  Company to Reserve Common Stock.

               The Company shall at all times prior to the Purchase Contract
Settlement Date reserve and keep available, free from preemptive rights, out of
its authorized but unissued Common Stock the full number of shares of Common
Stock issuable against tender of payment in respect of all Purchase Contracts
constituting a part of the Securities evidenced by Outstanding Certificates.
<PAGE>

                                                                              58

Section 10.4.  Covenants as to Common Stock.

               The Company covenants that all shares of Common Stock which may
be issued against tender of payment in respect of any Purchase Contract
constituting a part of the Outstanding Securities will, upon issuance, be duly
authorized, validly issued, fully paid and nonassessable.

Section 10.5.  Statements of Officers of the Company as to Default.

               The Company will deliver to the Purchase Contract Agent, within
120 days after the end of each fiscal year of the Company (which as of the date
hereof is December 31) ending after the date hereof, an Officers' Certificate
(one of the signers of which shall be the principal executive officer, principal
financial officer or principal accounting officer of the Company), stating
whether or not to the best knowledge of the signers thereof the Company is in
default in the performance and observance of any of the terms, provisions and
conditions hereof, and if the Company shall be in default, specifying all such
defaults and the nature and status thereof of which they may have knowledge.

Section 10.6.  ERISA.

               Each Holder from time to time of the Corporate PIES which is a
Plan hereby represents that its acquisition of the Corporate PIES and the
holding of the same satisfies the applicable fiduciary requirements of ERISA and
that it is entitled to exemption relief from the prohibited transaction
provisions of ERISA and the Code in accordance with one or more prohibited
transaction exemptions or otherwise will not result in a nonexempt prohibited
transaction.
<PAGE>

                                                                              59

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

                                            DOMINION RESOURCES, INC.

                                            By: _______________________________
                                                Name:
                                                Title:

                                            THE CHASE MANHATTAN BANK,
                                            as Purchase Contract Agent

                                            By: _______________________________
                                                Name:
                                                Title:
<PAGE>

                                                                       EXHIBIT A

                  FORM OF FACE OF CORPORATE PIES CERTIFICATE

This certificate is a global certificate within the meaning of the Purchase
Contract Agreement hereinafter referred to and is registered in the name of The
Depository Trust Company, a New York corporation (the "Depositary"), or a
nominee of the Depositary. This certificate is exchangeable for certificates
registered in the name of a person other than the Depositary or its nominee only
in the limited circumstances described in the Purchase Contract Agreement and no
transfer of this certificate (other than a transfer of this certificate as a
whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary) may be
registered except in limited circumstances.

Unless this certificate is presented by an authorized representative of the
Depositary for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or such other name as
is requested by an authorized representative of the Depositary (and any payment
hereon is made to Cede & Co. or to such other entity as is requested by an
authorized representative of the Depositary), any transfer, pledge or other use
hereof for value or otherwise by or to any person is wrongful since the
registered owner hereof, Cede & Co., has an interest herein./1/

No. _______                                                  CUSIP No. 25746U208
Number of Corporate PIES ________

                           DOMINION RESOURCES, INC.
                                Corporate PIES

          This Corporate PIES Certificate certifies that [Cede & Co.]/2/, or
registered assigns, is the registered Holder of the number of Corporate PIES set
forth above [or such other number as set forth in the Schedule of Increases and
Decreases in Global Certificate attached hereto] /3/. Each Corporate PIES
consists of (i) the rights and obligations of the Holder under one Purchase
Contract with Dominion Resources, Inc., a Virginia corporation (the "Company"),
and (ii) the beneficial ownership by the Holder of one 2000 Series G 8.05%
Senior Note, due November 15, 2006 (the "Senior Note") of the Company, having a
principal amount of $50, subject to the Pledge of such Senior Note by such
Holder pursuant to the Pledge Agreement. All capitalized terms used herein which
are defined in the Purchase Contract Agreement (as defined on the reverse
hereof) have the meaning set forth therein.

          Pursuant to the Pledge Agreement, the Senior Note constituting part of
each Corporate PIES evidenced hereby has been pledged to the Collateral Agent,
for the benefit of the Company, to secure the obligations of the Holder under
the Purchase Contract comprising a portion of such Corporate PIES.

_________________________

/1/   Insert in Global Certificates only.

/2/   Insert in Global Certificates only.

/3/   Insert in Global Certificates only.
<PAGE>

          Each Purchase Contract evidenced hereby obligates the Holder of this
Corporate PIES Certificate to purchase, and the Company to sell, on the Purchase
Contract Settlement Date, at a price equal to $50 in cash (the "Stated Amount"),
a number of shares of Common Stock, equal to the Settlement Rate, unless on or
prior to the Purchase Contract Settlement Date there shall have occurred a
Termination Event or an Early Settlement with respect to the Corporate PIES of
which such Purchase Contract is a part, all as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof. The purchase price
(the "Purchase Price") for the shares of Common Stock purchased pursuant to each
Purchase Contract evidenced hereby, if not paid earlier, shall be paid on the
Purchase Contract Settlement Date by cash or by application of payment received
in respect of the principal amount with respect to each Pledged Senior Note
pursuant to the Remarketing pledged to secure the obligations under such
Purchase Contract of the Holder of the Corporate PIES of which such Purchase
Contract is a part.

          The Company shall pay on February 15, May 15, August 15 and November
15 of each year (each, a "Payment Date"), commencing February 15, 2001, in
respect of each Purchase Contract forming part of a Corporate PIES evidenced
hereby, an amount (the "Contract Adjustment Payments") equal to (a) if a Reset
Transaction has not occurred, 1.45% per annum of the Stated Amount or (b)
following the occurrence of a Reset Transaction, the Adjusted Contract
Adjustment Payment Rate related to such Reset Transaction until any such
succeeding Reset Transaction shall occur, in either case, computed on the basis
of (i) for any full quarterly period, a 360-day year of twelve 30-day months,
(ii) for any period shorter than a full quarterly period, a 30-day month and
(iii) for periods less than a month, the actual number of days elapsed per 30-
day period.  Such Contract Adjustment Payments shall be payable to the Person in
whose name this Corporate PIES Certificate (or a Predecessor Corporate PIES
Certificate) is registered at the close of business on the Record Date for such
Payment Date.

          Interest on the Senior Notes, the beneficial ownership of which is
evidenced hereby, is payable quarterly in arrears on each Payment Date.  Such
interest payments shall be payable to the Person in whose name this Corporate
PIES Certificate (or a Predecessor Corporate PIES Certificate) is registered at
the close of business on the Record Date for such Payment Date.

          Contract Adjustment Payments and interest payments on the Senior Notes
will be payable at the office of the Purchase Contract Agent in The City of New
York or, at the option of the Company, by check mailed to the address of the
Person entitled thereto as such address appears on the Corporate PIES Register.

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

          Unless the certificate of authentication hereon has been executed by
the Purchase Contract Agent by manual signature, this Corporate PIES Certificate
shall not be entitled to any benefit under the Purchase Contract Agreement or
the Pledge Agreement or be valid or obligatory for any purpose.

                                      A-2
<PAGE>

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                            DOMINION RESOURCES, INC.

                                            By: _______________________________
                                                Name:
                                                Title:

                                            By: _______________________________
                                                Name:
                                                Title:

                                            HOLDER SPECIFIED ABOVE (as to
                                            obligations of such Holder under the
                                            Purchase Contracts evidenced hereby)

                                            By: The Chase Manhattan Bank,
                                                not individually but solely as
                                                Attorney-in-Fact of such Holder

                                            By: _______________________________
                                                Name:
                                                Title:

Dated:

                                     A-3
<PAGE>

                       CERTIFICATE OF AUTHENTICATION OF
                            PURCHASE CONTRACT AGENT

          This is one of the Corporate PIES Certificates referred to in the
within mentioned Purchase Contract Agreement.

                                            By: THE CHASE MANHATTAN BANK,
                                                as Purchase Contract Agent

                                            By: _______________________________
                                                Authorized Officer

                                      A-4
<PAGE>

                (FORM OF REVERSE OF CORPORATE PIES CERTIFICATE)

          Each Purchase Contract evidenced hereby is governed by a Purchase
Contract Agreement, dated as of October 12, 2000 (as may be supplemented from
time to time, the "Purchase Contract Agreement"), between the Company and The
Chase Manhattan Bank, as Purchase Contract Agent (including its successors
hereunder, the "Purchase Contract Agent"), to which Purchase Contract Agreement
and supplemental agreements thereto reference is hereby made for a description
of the respective rights, limitations of rights, obligations, duties and
immunities thereunder of the Purchase Contract Agent, the Company, and the
Holders and of the terms upon which the Corporate PIES Certificates are, and are
to be, executed and delivered.

          Each Purchase Contract evidenced hereby obligates the Holder of this
Corporate PIES Certificate to purchase, and the Company to sell, on the Purchase
Contract Settlement Date at a price equal to the Stated Amount (the "Purchase
Price"), a number of shares of Common Stock of the Company equal to the
Settlement Rate, unless, on or prior to the Purchase Contract Settlement Date,
there shall have occurred a Termination Event with respect to the Security of
which such Purchase Contract is a part or an Early Settlement shall have
occurred.  The "Settlement Rate" is equal to:

          (1) if the Applicable Market Value (as defined below) is equal to or
     greater than $61.20 (the "Threshold Appreciation Price"), 0.8170 shares of
     Common Stock per Purchase Contract;

          (2) if the Applicable Market Value is less than the Threshold
     Appreciation Price but greater than $51.00 (the "Reference Price"), the
     number of shares of Common Stock per Purchase Contract having a value,
     based on the Applicable Market Value, equal to the Stated Amount; and

          (3) if the Applicable Market Amount is less than or equal to the
     Reference Price, 0.9804 shares of Common Stock per Purchase Contract,

in each case subject to adjustment as provided in the Purchase Contract
Agreement.

          No fractional shares of Common Stock will be issued upon settlement of
Purchase Contracts, as provided in the Purchase Contract Agreement.

          Each Purchase Contract evidenced hereby, which is settled either
through Early Settlement or Cash Settlement, shall obligate the Holder of the
related Corporate PIES to purchase at the Purchase Price, and the Company to
sell, a number of newly issued shares of Common Stock equal to the Early
Settlement Rate or the Settlement Rate, as applicable.

          The "Applicable Market Value" means the average of the Closing Price
per share of Common Stock on each of the 20 Trading Days ending on the third
Trading Day immediately preceding the Purchase Contract Settlement Date.

                                      A-5
<PAGE>

          The "Closing Price" per share of Common Stock on any date of
determination means

          (1) the closing sale price (or, if no closing price is reported, the
     last reported sale price) per share of Common Stock on the New York Stock
     Exchange (the "NYSE") on such date;

          (2) if the Common Stock is not listed for trading on the NYSE on any
     such date, the closing sale price per share as reported in the composite
     transactions for the principal United States securities exchange on which
     the Common Stock is so listed;

          (3) the Common Stock is not so listed on a United States national or
     regional securities exchange, the closing sale price per share as reported
     by The Nasdaq Stock Market;

          (4) if the Common Stock is not so reported, the last quoted bid price
     per share for the Common Stock in the over-the-counter market as reported
     by the National Quotation Bureau or similar organization; or

          (5) if such bid price is not available, the average of the mid-point
     of the last bid and ask prices per share of the Common Stock on such date
     from at least three nationally recognized independent investment banking
     firms retained for this purpose by the Company.

          A "Trading Day" means a day on which the Common Stock (1) is not
suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (2) has
traded at least once on the national or regional securities exchange or
association or over-the-counter market that is the primary market for the
trading of the Common Stock.

          In accordance with the terms of the Purchase Contract Agreement, the
Holder of this Corporate PIES Certificate shall pay the Purchase Price for the
shares of Common Stock purchased pursuant to each Purchase Contract evidenced
hereby by effecting a Cash Settlement or an Early Settlement or a Remarketing of
the related Pledged Senior Notes.  A Holder of Corporate PIES who does not
effect, prior to 11:00 a.m. (New York City time) on the fifth Business Day
immediately preceding the Purchase Contract Settlement Date, an effective Cash
Settlement or an Early Settlement, shall pay the Purchase Price for the shares
of Common Stock to be issued under the related Purchase Contract from the
proceeds of the sale of the related Pledged Senior Notes held by the Collateral
Agent.  Such sale will be made by the Remarketing Agent pursuant to the terms of
the Remarketing Agreement on the third Business Day immediately preceding the
Purchase Contract Settlement Date.  Upon the occurrence of a Failed Remarketing,
the Collateral Agent shall exercise, for the benefit of the Company, its rights
as a secured creditor with respect to the Pledged Senior Notes related to this
Corporate PIES certificate and, subject to applicable law, may, among other
things, (i) retain such Pledged Senior Notes in full satisfaction of the
Holders' obligations under the Purchase Contracts or (ii) sell such Pledged
Senior Notes in one or more public or private sales, the proceeds, if any, of
such sale to constitute full satisfaction of the Holders' obligations under the
Purchase Contracts.  With respect to such Pledged Senior Notes which are the
subject of a Failed Remarketing, any accrued and unpaid interest payments on
such Pledged Senior Notes will become payable by the Company to the Holder of
this Corporate PIES Certificate in the manner provided for in the Purchase
Contract Agreement.

                                      A-6
<PAGE>

          The Company shall not be obligated to issue any shares of Common Stock
in respect of a Purchase Contract or deliver any certificates therefor to the
Holder unless it shall have received payment of the aggregate purchase price for
the shares of Common Stock to be purchased thereunder in the manner herein set
forth.

          Each Purchase Contract evidenced hereby and all obligations and rights
of the Company and the Holder thereunder shall terminate if a Termination Event
shall occur. Upon the occurrence of a Termination Event, the Company shall give
written notice to the Purchase Contract Agent and to the Holders, at their
addresses as they appear in the Corporate PIES Register. Upon and after the
occurrence of a Termination Event, the Collateral Agent shall release the
Pledged Senior Note forming a part of each Corporate PIES from the Pledge. A
Corporate PIES shall thereafter represent the right to receive the Senior Note
forming a part of such Corporate PIES in accordance with the terms of the
Purchase Contract Agreement and the Pledge Agreement.

          Under the terms of the Pledge Agreement, the Purchase Contract Agent
will be entitled to exercise the voting and any other consensual rights
pertaining to the Pledged Senior Notes. Upon receipt of notice of any meeting at
which holders of Senior Notes are entitled to vote or upon the solicitation of
consents, waivers or proxies of holders of Senior Notes, the Purchase Contract
Agent shall, as soon as practicable thereafter, mail to the Corporate PIES
Holders a notice:

          (1)  containing such information as is contained in the notice or
     solicitation;

          (2)  stating that each Corporate PIES Holder on the record date set by
     the Purchase Contract Agent therefor (which, to the extent possible, shall
     be the same date as the record date for determining the holders of Senior
     Notes entitled to vote) shall be entitled to instruct the Purchase Contract
     Agent as to the exercise of the voting rights pertaining to the Senior
     Notes constituting a part of such Holder's Corporate PIES; and

          (3)  stating the manner in which such instructions may be given.

Upon the written request of the Corporate PIES Holders on such record date, the
Purchase Contract Agent shall endeavor insofar as practicable to vote or cause
to be voted, in accordance with the instructions set forth in such requests, the
maximum aggregate principal amount of Senior Notes as to which any particular
voting instructions are received. In the absence of specific instructions from
the Holder of a Corporate PIES, the Purchase Contract Agent shall abstain from
voting the Senior Notes evidenced by such Corporate PIES.

          The Corporate PIES Certificates are issuable only in registered form
and only in denominations of a single Corporate PIES and any integral multiple
thereof. The transfer of any Corporate PIES Certificate will be registered and
Corporate PIES Certificates may be exchanged as provided in the Purchase
Contract Agreement. The Corporate PIES Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents
permitted by the Purchase Contract Agreement. No service charge shall be
required for any such registration of transfer or exchange, but the Company and
the Purchase Contract Agent may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith. A Holder who
elects to substitute a Treasury Security for Senior Notes, thereby creating
Treasury PIES, shall be responsible for any fees or expenses payable in
connection therewith. Except as provided in

                                      A-7
<PAGE>

the Purchase Contract Agreement, for so long as the Purchase Contract underlying
a Corporate PIES remains in effect, such Corporate PIES shall not be separable
into its constituent parts, and the rights and obligations of the Holder of such
Corporate PIES in respect of the Senior Note and Purchase Contract constituting
such Corporate PIES may be transferred and exchanged only as a Corporate PIES.

          A holder of a Corporate PIES may substitute for the Pledged Senior
Notes securing its obligation under the related Purchase Contract Treasury
Securities in an aggregate principal amount at maturity equal to the aggregate
principal amount of the Pledged Senior Notes in accordance with the terms of the
Purchase Contract Agreement and the Pledge Agreement. From and after such
Collateral Substitution, the Security for which such Pledged Treasury Securities
secures the Holder's obligation under the Purchase Contract shall be referred to
as a "Treasury PIES." A Holder may make such Collateral Substitution only in
integral multiples of 20 Corporate PIES for 20 Treasury PIES. Such Collateral
Substitution may cause the equivalent aggregate principal amount of this
Certificate to be increased or decreased; provided, however, this Corporate PIES
Certificate shall not represent more than 8,250,000 Corporate PIES, or if in the
form of a Global Certificate, such other maximum amount as shall at the time be
prescribed by the applicable Clearing Agency. All such adjustments to the
equivalent aggregate principal amount of this Corporate PIES Certificate shall
be duly recorded by placing an appropriate notation on the Schedule attached
hereto.

          A Holder of Treasury PIES may recreate Corporate PIES by delivering to
the Securities Intermediary Senior Notes with an aggregate principal amount
equal to the aggregate principal amount at maturity of the Pledged Treasury
Securities in exchange for the release of such Pledged Treasury Securities in
accordance with the terms of the Purchase Contract Agreement and the Pledge
Agreement.

          The Company shall pay, on each Payment Date, the Contract Adjustment
Payments payable in respect of each Purchase Contract to the Person in whose
name the Corporate PIES Certificate evidencing such Purchase Contract is
registered at the close of business on the Record Date for such Payment Date.
Contract Adjustment Payments will be payable at the office of the Purchase
Contract Agent in The City of New York or, at the option of the Company, by
check mailed to the address of the Person entitled thereto at such address as it
appears on the Corporate PIES Register.

          The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of the
Holders to receive, and the obligations of the Company to pay, Contract
Adjustment Payments, shall immediately and automatically terminate, without the
necessity of any notice or action by any Holder, the Purchase Contract Agent or
the Company, if, on or prior to the Purchase Contract Settlement Date, a
Termination Event shall have occurred.  Upon the occurrence of a Termination
Event, the Company shall promptly but in no event later than two Business Days
thereafter give written notice to the Purchase Contract Agent, the Collateral
Agent and the Holders, at their addresses as they appear in the Corporate PIES
Register.  Upon and after the occurrence of a Termination Event, the Collateral
Agent shall release the Senior Notes from the Pledge in accordance with the
provisions of the Pledge Agreement.  A Corporate PIES shall thereafter represent
the right to receive the Senior Note forming a part of such Corporate PIES in
accordance with the terms of the Purchase Contract Agreement and the Pledge
Agreement.

                                      A-8
<PAGE>

          Subject to and upon compliance with the provisions of the Purchase
Contract Agreement, at the option of the Holder thereof, Purchase Contracts
underlying Securities may be settled early ("Early Settlement") as provided in
the Purchase Contract Agreement.  In order to exercise the right to effect Early
Settlement with respect to any Purchase Contracts evidenced by this Corporate
PIES Certificate, the Holder of this Corporate PIES Certificate shall deliver
this Corporate PIES Certificate to the Purchase Contract Agent at the Corporate
Trust Office duly endorsed for transfer to the Company or in blank with the form
of Election to Settle Early set forth below duly completed and accompanied by
payment in the form of immediately available funds payable to the order of the
Company in an amount (the "Early Settlement Amount") equal to:

          (1)  the product of (A) the Stated Amount times (B) the number of
     Purchase Contracts with respect to which the Holder has elected to effect
     Early Settlement, plus

          (2)  if such delivery is made with respect to any Purchase Contracts
     during the period from the close of business on any Record Date for any
     Payment Date to the opening of business on such Payment Date, an amount
     equal to the Contract Adjustment Payments payable on such Payment Date with
     respect to such Purchase Contracts.

Upon Early Settlement of Purchase Contracts by a Holder of the related
Securities, the Pledged Senior Notes underlying such Securities shall be
released from the Pledge as provided in the Pledge Agreement and the Holder
shall be entitled to receive a number of shares of Common Stock on account of
each Purchase Contract forming part of a Corporate PIES as to which Early
Settlement is effected equal to the Early Settlement Rate. The Early Settlement
Rate shall initially be equal to 0.8170 shares of Common Stock and shall be
adjusted in the same manner and at the same time as the Settlement Rate is
adjusted as provided in the Purchase Contract Agreement.

          Upon registration of transfer of this Corporate PIES Certificate, the
transferee shall be bound (without the necessity of any other action on the part
of such transferee, except as may be required by the Purchase Contract Agent
pursuant to the Purchase Contract Agreement), under the terms of the Purchase
Contract Agreement and the Purchase Contracts evidenced hereby and the
transferor shall be released from the obligations under the Purchase Contracts
evidenced by this Corporate PIES Certificate. The Company covenants and agrees,
and the Holder, by its acceptance hereof, likewise covenants and agrees, to be
bound by the provisions of this paragraph.

          The Holder of this Corporate PIES Certificate, by its acceptance
hereof, authorizes the Purchase Contract Agent to enter into and perform the
related Purchase Contracts forming part of the Corporate PIES evidenced hereby
on its behalf as its attorney-in-fact, expressly withholds any consent to the
assumption (i.e., affirmance) of the Purchase Contracts by the Company or its
trustee in the event that the Company becomes the subject of a case under the
Bankruptcy Code, agrees to be bound by the terms and provisions thereof,
covenants and agrees to perform its obligations under such Purchase Contracts,
consents to the provisions of the Purchase Contract Agreement, authorizes the
Purchase Contract Agent to enter into and perform the Purchase Contract
Agreement and the Pledge Agreement on its behalf as its attorney-in-fact, and
consents to the Pledge of the Senior Notes underlying this Corporate PIES
Certificate pursuant to the Pledge Agreement. The Holder further covenants and
agrees that, to the extent and in the manner provided in the Purchase Contract
Agreement and the Pledge Agreement, but subject to the terms thereof, payments
in respect of the aggregate principal amount of the Pledged Senior Notes shall
be paid on the Purchase Contract

                                      A-9
<PAGE>

Settlement Date by the Collateral Agent to the Company in satisfaction of such
Holder's obligations under such Purchase Contract and such Holder shall acquire
no right, title or interest in such payments.

          Subject to certain exceptions, the provisions of the Purchase Contract
Agreement may be amended with the consent of the Holders of a majority of the
Purchase Contracts.

          The Purchase Contracts shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.

          The Company, the Purchase Contract Agent and its Affiliates and any
agent of the Company or the Purchase Contract Agent may treat the Person in
whose name this Corporate PIES Certificate is registered as the owner of the
Corporate PIES evidenced hereby for the purpose of receiving payments of
interest payable quarterly on the Senior Notes, receiving payments of Contract
Adjustment Payments, performance of the Purchase Contracts and for all other
purposes whatsoever, whether or not any payments in respect thereof be overdue
and notwithstanding any notice to the contrary, and neither the Company, the
Purchase Contract Agent nor any such agent shall be affected by notice to the
contrary.

          The Purchase Contracts shall not, prior to the settlement thereof,
entitle the Holder to any of the rights of a holder of shares of Common Stock.
Upon settlement of the Purchase Contracts, the Holder will be entitled to all of
the rights of a holder of shares of Common Stock, including, without limitation,
the right to vote and receive dividends and other payments and to consent and
receive notice as a shareholder in respect of the meetings of shareholders and
for the election of directors of the Company and for all other matters, and all
other rights whatsoever as a shareholder of the Company.

          A copy of the Purchase Contract Agreement is available for inspection
at the offices of the Purchase Contract Agent.

                                     A-10
<PAGE>

                                 ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM -                    as tenants in common

UNIF GIFT MIN ACT -          ---------------Custodian---------------
                             (cust)                           (minor)

                             Under Uniform Gifts to Minors Act of _______

                             _________________________________________

TEN ENT -                    as tenants by the entireties

JT TEN -                     as joint tenants with right of survivorship and
                             not as tenants in common

Additional abbreviations may also be used though not in the above list.

                             _________________________

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

_______________________________________________________________________________
(Please insert Social Security or Taxpayer I.D. or other Identifying Number of
                                   Assignee)

_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
 (Please Print or Type Name and Address Including Postal Zip Code of Assignee)

the within Corporate PIES Certificates and all rights thereunder, hereby
irrevocably constituting and appointing________________________________________
attorney to transfer said Corporate PIES Certificates on the books of Dominion
Resources, Inc. with full power of substitution in the premises.

Dated: ___________________        _____________________________________________
                                  Signature
                                  NOTICE: The signature to this assignment must
                                  correspond with the name as it appears upon
                                  the face of the within Corporate PIES
                                  Certificates in every particular, without
                                  alteration or enlargement or any change
                                  whatsoever.

Signature Guarantee: ___________________________________

                                     A-11
<PAGE>

                            SETTLEMENT INSTRUCTIONS

          The undersigned Holder directs that a certificate for shares of Common
Stock deliverable upon settlement on or after the Purchase Contract Settlement
Date of the Purchase Contracts underlying the number of Corporate PIES evidenced
by this Corporate PIES Certificate be registered in the name of, and delivered,
together with a check in payment for any fractional share, to the undersigned at
the address indicated below unless a different name and address have been
indicated below.  If shares are to be registered in the name of a Person other
than the undersigned, the undersigned will pay any transfer tax payable incident
thereto.

Dated: _______________________          _____________________________________
                                        Signature
                                        Signature Guarantee: _________________
                                        (if assigned to another person)

If shares are to be registered in       REGISTERED HOLDER
the name of and delivered to a
Person other than the Holder, please
(i) print such Person's name and
address and (ii) provide a guarantee
of your signature:

                                        Please print name and address of
                                        Registered Holder:

_____________________________________   _____________________________________
                 Name                                 Name
_____________________________________   _____________________________________
               Address                               Address
_____________________________________   _____________________________________
_____________________________________   _____________________________________
_____________________________________   _____________________________________

Social Security or other
Taxpayer Identification                 _____________________________________
Number, if any

                                     A-12
<PAGE>

                           ELECTION TO SETTLE EARLY

          The undersigned Holder of this Corporate PIES Certificate hereby
irrevocably exercises the option to effect Early Settlement in accordance with
the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Corporate PIES evidenced by this Corporate
PIES Certificate specified below. The undersigned Holder directs that a
certificate for shares of Common Stock deliverable upon such Early Settlement be
registered in the name of, and delivered, together with a check in payment for
any fractional share and any Corporate PIES Certificate representing any
Corporate PIES evidenced hereby as to which Early Settlement of the related
Purchase Contracts is not effected, to the undersigned at the address indicated
below unless a different name and address have been indicated below. Pledged
Senior Notes deliverable upon such Early Settlement will be transferred in
accordance with the transfer instructions set forth below. If shares are to be
registered in the name of a Person other than the undersigned, the undersigned
will pay any transfer tax payable incident thereto.

Dated: ___________________________            ________________________________
                                                          Signature

          Signature Guarantee: _____________________________________

                                     A-13
<PAGE>

          Number of Securities evidenced hereby as to which Early Settlement of
the related Purchase Contracts is being elected:

If shares of Common Stock or Corporate  REGISTERED HOLDER
PIES Certificates are to be registered
in the name of and delivered to, and
Pledged Senior Notes are to be
transferred to, a Person other than
the Holder, please print such Person's
name and address:
                                        Please print name and address of
                                        Registered Holder:

_____________________________________   _____________________________________
                 Name                                   Name

_____________________________________   _____________________________________
               Address                                 Address
_____________________________________   _____________________________________
_____________________________________   _____________________________________
_____________________________________   _____________________________________

Social Security or other
Taxpayer Identification                 _____________________________________
Number, if any

                                     A-14
<PAGE>

Transfer Instructions for Pledged Senior Notes Transferable Upon Early
Settlement or a Termination Event:

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

                                     A-15
<PAGE>

                    [TO BE ATTACHED TO GLOBAL CERTIFICATES]

           SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

The following increases or decreases in this Global Certificate have been made:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Number of Corporate PIES
                  Amount of decrease in         Amount of increase in           evidenced by this          Signature of authorized
                 Number of Corporate PIES      Number of Corporate PIES         Global Certificate           officer of Purchase
                     evidenced by the              evidenced by the               following such              Contract Agent or
      Date          Global Certificate            Global Certificate           decrease or increase          Securities Custodian
-----------------------------------------------------------------------------------------------------------------------------------
      <S>        <C>                           <C>                             <C>                         <C>
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
</TABLE>

                                     A-16

<PAGE>

                                                                       EXHIBIT B
                   FORM OF FACE OF TREASURY PIES CERTIFICATE

This certificate is a global certificate within the meaning of the Purchase
Contract Agreement hereinafter referred to and is registered in the name of The
Depository Trust Company, a New York corporation (the "Depositary"), or a
nominee of the Depositary. This certificate is exchangeable for certificates
registered in the name of a person other than the Depositary or its nominee only
in the limited circumstances described in the Purchase Contract Agreement and no
transfer of this certificate (other than a transfer of this certificate as a
whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the depositary or another nominee of the Depositary) may be
registered except in limited circumstances.

Unless this certificate is presented by an authorized representative of the
Depositary for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or such other name as
is requested by an authorized representative of the Depositary (and any payment
hereon is made to Cede & Co. or to such other entity as is requested by an
authorized representative of the Depositary), any transfer, pledge or other use
hereof for value or otherwise by or to any person is wrongful since the
registered owner hereof, Cede & Co., has an interest herein./1/

No. _______                                                 CUSIP No.  25746U307

Number of Treasury PIES ________

                           DOMINION RESOURCES, INC.
                                 Treasury PIES

          This Treasury PIES Certificate certifies that [Cede & Co.]/2/, or
registered assigns, is the registered Holder of the number of Treasury PIES set
forth above [or such other number as set forth in the Schedule of Increases and
Decreases in Global Certificate attached hereto] /3/. Each Treasury PIES
consists of (i) the rights and obligations of the Holder under one Purchase
Contract with Dominion Resources, Inc., a Virginia corporation (the "Company")
and (ii) a 1/20 undivided beneficial ownership interest of a Treasury Security
having a principal amount at maturity equal to $1,000 and maturing on or prior
to November 15, 2004. All capitalized terms used herein which are defined in the
Purchase Contract Agreement (as defined on the reverse hereof) have the meaning
set forth therein.

          Pursuant to the Pledge Agreement, the Treasury Securities constituting
part of each Treasury PIES evidenced hereby have been pledged to the Collateral
Agent, for the benefit of the Company, to secure the obligations of the Holder
under the Purchase Contract comprising a portion of such Treasury PIES.

_________________________
/1/    Insert in Global Certificates only.

/2/     Insert in Global Certificates only.

/3/    Insert in Global Certificates only.
<PAGE>

          Each Purchase Contract evidenced hereby obligates the Holder of this
Treasury PIES Certificate to purchase, and the Company, to sell, on the Purchase
Contract Settlement Date, at a price equal to $50 in cash (the "Stated Amount"),
a number of shares of Common Stock equal to the Settlement Rate, unless on or
prior to the Purchase Contract Settlement Date there shall have occurred a
Termination Event or an Early Settlement with respect to the Treasury PIES of
which such Purchase Contract is a part, all as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof. The purchase price
(the "Purchase Price") for the shares of Common Stock purchased pursuant to each
Purchase Contract evidenced hereby, if not paid earlier, shall be paid on the
Purchase Contract Settlement Date by application of the Proceeds from the
Treasury Securities at maturity pledged to secure the obligations under such
Purchase Contract of the Holder of the Treasury PIES of which such Purchase
Contract is a part.

          The Company shall pay on February 15, May 15, August 15 and November
15 of each year (each, a "Payment Date"), commencing February 15, 2001, in
respect of each Purchase Contract evidenced hereby, an amount (the "Contract
Adjustment Payments") equal to (a) if a Reset Transaction has not occurred,
1.45% per annum of the Stated Amount or (b) following the occurrence of a Reset
Transaction, the Adjusted Contract Adjustment Payment Rate related to such Reset
Transaction until any such succeeding Reset Transaction shall occur, in either
case, computed on the basis of (i) for any full quarterly period, a 360-day year
of twelve 30-day months, (ii) for any period shorter than a full quarterly
period, a 30-day month and (iii) for periods less than a month, the actual
number of days elapsed per 30-day period).  Such Contract Adjustment Payments
shall be payable to the Person in whose name this Treasury PIES Certificate (or
a Predecessor Treasury PIES Certificate) is registered at the close of business
on the Record Date for such Payment Date.

          Contract Adjustment Payments will be payable at the office of the
Purchase Contract Agent in The City of New York or, at the option of the
Company, by check mailed to the address of the Person entitled thereto as such
address appears on the Treasury PIES Register.

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

          Unless the certificate of authentication hereon has been executed by
the Purchase Contract Agent by manual signature, this Treasury PIES Certificate
shall not be entitled to any benefit under the Purchase Contract Agreement or
the Pledge Agreement or be valid or obligatory for any purpose.

                                      B-2
<PAGE>

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                            DOMINION RESOURCES, INC.

                                            By: _______________________________
                                                Name:
                                                Title:

                                            By: _______________________________
                                                Name:
                                                Title:

                                            HOLDER SPECIFIED ABOVE (as to
                                            obligations of such Holder under the
                                            Purchase Contracts evidenced hereby)

                                            By: The Chase Manhattan Bank,
                                                not individually but solely as
                                                Attorney-in-Fact of such Holder

                                            By: _______________________________
                                                Name:
                                                Title:

Dated:

                                     B-3
<PAGE>

                       CERTIFICATE OF AUTHENTICATION OF

                            PURCHASE CONTRACT AGENT

          This is one of the Treasury PIES Certificates referred to in the
within mentioned Purchase Contract Agreement.

                                            By: THE CHASE MANHATTAN BANK,
                                                as Purchase Contract Agent

                                            By: _______________________________
                                                Authorized Officer

                                      B-4
<PAGE>

                (FORM OF REVERSE OF TREASURY PIES CERTIFICATE)

          Each Purchase Contract evidenced hereby is governed by a Purchase
Contract Agreement, dated as of October 12, 2000 (as may be supplemented from
time to time, the "Purchase Contract Agreement") between the Company and The
Chase Manhattan Bank, as Purchase Contract Agent (including its successors
thereunder, herein called the "Purchase Contract Agent"), to which the Purchase
Contract Agreement and supplemental agreements thereto reference is hereby made
for a description of the respective rights, limitations of rights, obligations,
duties and immunities thereunder of the Purchase Contract Agent, the Company and
the Holders and of the terms upon which the Treasury PIES Certificates are, and
are to be, executed and delivered.

          Each Purchase Contract evidenced hereby obligates the Holder of this
Treasury PIES Certificate to purchase, and the Company to sell, on the Purchase
Contract Settlement Date at a price equal to the Stated Amount (the "Purchase
Price") a number of shares of Common Stock of the Company equal to the
Settlement Rate, unless on or prior to the Purchase Contract Settlement Date:
there shall have occurred a Termination Event with respect to the Security of
which such Purchase Contract is a part or an Early Settlement shall have
occurred.  The "Settlement Rate" is equal to:

          (1) if the Applicable Market Value (as defined below) is equal to or
     greater than $61.20 (the "Threshold Appreciation Price"), 0.8170 shares of
     Common Stock per Purchase Contract;

          (2) if the Applicable Market Value is less than the Threshold
     Appreciation Price but greater than $51.00 (the "Reference Price"), the
     number of shares of Common Stock per Purchase Contract having a value,
     based on the Applicable Market Value, equal to the Stated Amount; and

          (3) if the Applicable Market Amount is less than or equal to the
     Reference Price, then 0.9804 shares of Common Stock per Purchase Contract;

in each case subject to adjustment as provided in the Purchase Contract
Agreement.

          No fractional shares of Common Stock will be issued upon settlement of
Purchase Contracts, as provided in the Purchase Contract Agreement.

          Each Purchase Contract evidenced hereby, which is settled either
through Early Settlement or Cash Settlement, shall obligate the Holder of the
related Treasury PIES to purchase at the Purchase Price for cash, and the
Company to sell, a number of newly issued shares of Common Stock equal to the
Early Settlement Rate or the Settlement Rate, as applicable.

          The "Applicable Market Value" means the average of the Closing Prices
per share of Common Stock on each of the 20 Trading Days ending on the third
Trading Day immediately preceding the Purchase Contract Settlement Date.

                                      B-5
<PAGE>

          The "Closing Price" per share of Common Stock on any date of
determination means:

          (1)  the closing sale price (or, if no closing price is reported, the
     last reported sale price) per share of Common Stock on the New York Stock
     Exchange (the "NYSE") on such date;

          (2)  if the Common Stock is not listed for trading on the NYSE on any
     such date, the closing sale price per share as reported in the composite
     transactions for the principal United States securities exchange on which
     the Common Stock is so listed;

          (3)  if the Common Stock is not so listed on a United States national
     or regional securities exchange, the closing sale price per share as
     reported by The Nasdaq Stock Market;

          (4)  if the Common Stock is not so reported, the last quoted bid price
     per share for the Common Stock in the over-the-counter market as reported
     by the National Quotation Bureau or similar organization; or

          (5)  if such bid price is not available, the average of the mid-point
     of the last bid and ask prices per share of the Common Stock on such date
     from at least three nationally recognized independent investment banking
     firms retained for this purpose by the Company.

          A "Trading Day" means a day on which the Common Stock (A) is not
suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business and (B) has
traded at least once on the national or regional securities exchange or
association or over-the-counter market that is the primary market for the
trading of the Common Stock.

          In accordance with the terms of the Purchase Contract Agreement, the
Holder of this Treasury PIES shall pay the Purchase Price for the shares of
Common Stock purchased pursuant to each Purchase Contract evidenced hereby
either by effecting a Cash Settlement or an Early Settlement of each such
Purchase Contract or by applying the principal amount at maturity of the Pledged
Treasury Securities underlying such Holder's Treasury PIES.  A Holder of
Treasury PIES who does not effect, prior to 11:00 a.m. (New York City time) on
the Business Day immediately preceding the Purchase Contract Settlement Date, an
effective Cash Settlement or an Early Settlement, shall pay the Purchase Price
for the shares of Common Stock to be issued under the related Purchase Contract
from the proceeds of the Pledged Treasury Securities.

          The Company shall not be obligated to issue any shares of Common Stock
in respect of a Purchase Contract or deliver any certificates therefor to the
Holder unless it shall have received payment of the aggregate purchase price for
the shares of Common Stock to be purchased thereunder in the manner herein set
forth.

          Each Purchase Contract evidenced hereby and all obligations and rights
of the Company and the Holder thereunder shall terminate if a Termination Event
shall occur.  Upon the occurrence of a Termination Event, the Company shall give
written notice to the Purchase Contract Agent and to the Holders, at their
addresses as they appear in the Treasury PIES Register.  Upon and after the
occurrence of a Termination Event, the Collateral Agent shall release the
Pledged Treasury Securities (as defined in the Pledge Agreement) forming a part
of each Treasury PIES.  A Treasury

                                      B-6
<PAGE>

PIES shall thereafter represent the right to receive the interest in the
Treasury Security forming a part of such Treasury PIES, in accordance with the
terms of the Purchase Contract Agreement and the Pledge Agreement.

          The Treasury PIES Certificates are issuable only in registered form
and only in denominations of a single Treasury PIES and any integral multiple
thereof.  The transfer of any Treasury PIES Certificate will be registered and
Treasury PIES Certificates may be exchanged as provided in the Purchase Contract
Agreement.  The Treasury PIES Registrar may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents permitted by
the Purchase Contract Agreement.  No service charge shall be required for any
such registration of transfer or exchange, but the Company and the Purchase
Contract Agent may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.  A Holder who elects to
substitute Senior Notes for Treasury Securities, thereby recreating Corporate
PIES, shall be responsible for any fees or expenses associated therewith.
Except as provided in the Purchase Contract Agreement, for so long as the
Purchase Contract underlying a Treasury PIES remains in effect, such Treasury
PIES shall not be separable into its constituent parts, and the rights and
obligations of the Holder of such Treasury PIES in respect of the Treasury
Security and the Purchase Contract constituting such Treasury PIES may be
transferred and exchanged only as a Treasury PIES.

          A Holder of Treasury PIES may recreate Corporate PIES by delivering to
the Collateral Agent Senior Notes with a principal amount equal to the aggregate
principal amount at maturity of the Pledged Treasury Securities in exchange for
the release of such Pledged Treasury Securities in accordance with the terms of
the Purchase Contract Agreement and the Pledge Agreement.  From and after such
Collateral Substitution, the Holder's Security shall be referred to as a
"Corporate PIES." Such Collateral Substitution may cause the equivalent
aggregate principal amount of this Certificate to be increased or decreased;
provided, however, this Treasury PIES Certificate shall not represent more than
8,250,000 Treasury PIES, or if in the form of a Global Certificate, such other
maximum amount as shall at the time be prescribed by the applicable Clearing
Agency.  All such adjustments to the equivalent aggregate principal amount of
this Treasury PIES Certificate shall be duly recorded by placing an appropriate
notation on the Schedule attached hereto.

          A Holder of Corporate PIES may recreate Treasury PIES by delivering to
the Collateral Agent Treasury Securities in an aggregate principal amount at
maturity equal to the aggregate principal amount of the Pledged Senior Notes in
exchange for the release of such Pledged Senior Notes in accordance with the
terms of the Purchase Contract Agreement and the Pledge Agreement.  Any such
recreation of a Treasury PIES may be effected only in multiples of 20 Corporate
PIES for 20 Treasury PIES.

          The Company shall pay, on each Payment Date, the Contract Adjustment
Payments payable in respect of each Purchase Contract to the Person in whose
name the Treasury PIES Certificate evidencing such Purchase Contract is
registered at the close of business on the Record Date for such Payment Date.
Contract Adjustment Payments will be payable at the office of the Purchase
Contract Agent in The City of New York or, at the option of the Company, by
check mailed to the address of the Person entitled thereto at such address as it
appears on the Treasury PIES Register.

                                      B-7
<PAGE>

          The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of the
Holders to receive and the obligation of the Company to pay Contract Adjustment
Payments, shall immediately and automatically terminate, without the necessity
of any notice or action by any Holder, the Purchase Contract Agent or the
Company, if, on or prior to the Purchase Contract Settlement Date, a Termination
Event shall have occurred. Upon the occurrence of a Termination Event, the
Company shall promptly but in no event later than two Business Days thereafter
give written notice to the Purchase Contract Agent, the Collateral Agent and the
Holders, at their addresses as they appear in the Treasury PIES Register. Upon
the occurrence of a Termination Event, the Collateral Agent shall release the
Treasury Securities from the Pledge in accordance with the provisions of the
Pledge Agreement. A Treasury PIES shall thereafter represent the right to
receive the interest in the Treasury Security forming a part of such Treasury
PIES, in accordance with the terms of the Purchase Contract Agreement and the
Pledge Agreement.

          Subject to and upon compliance with the provisions of the Purchase
Contract Agreement, at the option of the Holder thereof, Purchase Contracts
underlying Securities may be settled early ("Early Settlement") as provided in
the Purchase Contract Agreement. In order to exercise the right to effect Early
Settlement with respect to any Purchase Contracts evidenced by this Treasury
PIES the Holder of this Treasury PIES Certificate shall deliver this Treasury
PIES Certificate to the Purchase Contract Agent at the Corporate Trust Office
duly endorsed for transfer to the Company or in blank with the form of Election
to Settle Early set forth below duly completed and accompanied by payment in the
form of immediately available funds payable to the order of the Company in an
amount (the "Early Settlement Amount") equal to:

          (1)  the product of (A) $50 times (B) the number of Purchase Contracts
     with respect to which the Holder has elected to effect Early Settlement,
     plus

          (2)  if such delivery is made with respect to any Purchase Contracts
     during the period from the close of business on any Record Date for any
     Payment Date to the opening of business on such Payment Date, an amount
     equal to the Contract Adjustment Payments payable on such Payment Date with
     respect to such Purchase Contracts.

Upon Early Settlement of Purchase Contracts by a Holder of the related
Securities, the Pledged Treasury Securities underlying such Securities shall be
released from the Pledge as provided in the Pledge Agreement and the Holder
shall be entitled to receive a number of shares of Common Stock on account of
each Purchase Contract forming part of a Treasury PIES as to which Early
Settlement is effected equal to 0.8170 shares of Common Stock per Purchase
Contract (the "Early Settlement Rate"). The Early Settlement Rate shall be
adjusted in the same manner and at the same time as the Settlement Rate is
adjusted as provided in the Purchase Contract Agreement.

          Upon registration of transfer of this Treasury PIES Certificate, the
transferee shall be bound (without the necessity of any other action on the part
of such transferee, except as may be required by the Purchase Contract Agent
pursuant to the Purchase Contract Agreement), under the terms of the Purchase
Contract Agreement and the Purchase Contracts evidenced hereby and the
transferor shall be released from the obligations under the Purchase Contracts
evidenced by this Treasury PIES Certificate. The Company covenants and agrees,
and the Holder, by its acceptance hereof, likewise covenants and agrees, to be
bound by the provisions of this paragraph.

                                      B-8
<PAGE>

          The Holder of this Treasury PIES Certificate, by its acceptance
hereof, authorizes the Purchase Contract Agent to enter into and perform the
related Purchase Contracts forming part of the Treasury PIES evidenced hereby on
its behalf as its attorney-in-fact, expressly withholds any consent to the
assumption (i.e., affirmance) of the Purchase Contracts by the Company or its
trustee in the event that the Company becomes the subject of a case under the
Bankruptcy Code, agrees to be bound by the terms and provisions thereof,
covenants and agrees to perform its obligations under such Purchase Contracts,
consents to the provisions of the Purchase Contract Agreement, authorizes the
Purchase Contract Agent to enter into and perform the Purchase Contract
Agreement and the Pledge Agreement on its behalf as its attorney-in-fact, and
consents to the Pledge of the Treasury Securities underlying this Treasury PIES
Certificate pursuant to the Pledge Agreement. The Holder further covenants and
agrees, that, to the extent and in the manner provided in the Purchase Contract
Agreement and the Pledge Agreement, but subject to the terms thereof, payments
in respect of the aggregate principal amount of the Pledged Treasury Securities
at maturity shall be paid on the Purchase Contract Settlement Date by the
Collateral Agent to the Company in satisfaction of such Holder's obligations
under such Purchase Contract and such Holder shall acquire no right, title or
interest in such payments.

          Subject to certain exceptions, the provisions of the Purchase Contract
Agreement may be amended with the consent of the Holders of a majority of the
Purchase Contracts.

          The Purchase Contracts shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.

          The Company, the Purchase Contract Agent and its Affiliates and any
agent of the Company or the Purchase Contract Agent may treat the Person in
whose name this Treasury PIES Certificate is registered as the owner of the
Treasury PIES evidenced hereby for the purpose of receiving payments of Contract
Adjustment Payments, performance of the Purchase Contracts and for all other
purposes whatsoever, whether or not any payments in respect thereof be overdue
and notwithstanding any notice to the contrary, and neither the Company, the
Purchase Contract Agent nor any such agent shall be affected by notice to the
contrary.

          The Purchase Contracts shall not, prior to the settlement thereof,
entitle the Holder to any of the rights of a holder of shares of Common Stock.
Upon settlement of the Purchase Contracts, the Holder will be entitled to all of
the rights of a holder of shares of Common Stock, including, without limitation,
the right to vote and receive dividends and other payments and to consent and
receive notice as a shareholder in respect of the meetings of shareholders and
for the election of directors of the Company and for all other matters, and all
other rights whatsoever as a shareholder of the Company.

          A copy of the Purchase Contract Agreement is available for inspection
at the offices of the Purchase Contract Agent.

                                      B-9
<PAGE>

                                 ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM -                     as tenants in common

UNIF GIFT MIN ACT -           ---------------Custodian---------------

                              (cust)            (minor)

                              Under Uniform Gifts to Minors Act of _______

                              __________________________________________

TEN ENT -                     as tenants by the entireties

JT TEN -                      as joint tenants with right of survivorship and
                              not as tenants in common

Additional abbreviations may also be used though not in the above list.

                                        _________________________

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

________________________________________________________________________________
     (Please insert Social Security or Taxpayer I.D. or other Identifying Number
                                   of Assignee)
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
     (Please Print or Type Name and Address Including Postal Zip Code of
                                   Assignee)

the within Treasury PIES Certificates and all rights thereunder, hereby
irrevocably constituting and appointing ________________________________________
attorney to transfer said Treasury PIES Certificates on the books of Dominion
Resources, Inc. with full power of substitution in the premises.

Dated: ___________________      ______________________________________________
                                Signature

                                NOTICE: The signature to this assignment must
                                correspond with the name as it appears upon the
                                face of the within Treasury PIES Certificates in
                                every particular, without alteration or
                                enlargement or any change whatsoever.

Signature Guarantee: ___________________________________

                                     B-10
<PAGE>

                            SETTLEMENT INSTRUCTIONS

          The undersigned Holder directs that a certificate for shares of Common
Stock deliverable upon settlement on or after the Purchase Contract Settlement
Date of the Purchase Contracts underlying the number of Treasury PIES evidenced
by this Treasury PIES Certificate be registered in the name of, and delivered,
together with a check in payment for any fractional share, to the undersigned at
the address indicated below unless a different name and address have been
indicated below. If shares are to be registered in the name of a Person other
than the undersigned, the undersigned will pay any transfer tax payable incident
thereto.

Dated: _______________________       _____________________________________
                                     Signature
                                     Signature Guarantee: ________________
                                     (if assigned to another person)

If shares are to be registered in    REGISTERED HOLDER
the name of and delivered to a
Person other than the  Holder,
please (i) print such Person's name
and address and (ii) provide a
guarantee of  your signature:
                                     Please print name and address of Registered
                                     Holder:

___________________________________  _____________________________________
               Name                                  Name
___________________________________  _____________________________________
             Address                                Address
___________________________________  _____________________________________
___________________________________  _____________________________________
___________________________________  _____________________________________

Social Security or other
Taxpayer Identification              _____________________________________
Number, if any

                                     B-11
<PAGE>

                           ELECTION TO SETTLE EARLY

          The undersigned Holder of this Treasury PIES Certificate irrevocably
exercises the option to effect Early Settlement in accordance with the terms of
the Purchase Contract Agreement with respect to the Purchase Contracts
underlying the number of Treasury PIES evidenced by this Treasury PIES
Certificate specified below. The option to effect Early Settlement may be
exercised only with respect to Purchase Contracts underlying Treasury PIES with
an aggregate Stated Amount equal to $1,000 or an integral multiple thereof. The
undersigned Holder directs that a certificate for shares of Common Stock
deliverable upon such Early Settlement be registered in the name of, and
delivered, together with a check in payment for any fractional share and any
Treasury PIES Certificate representing any Treasury PIES evidenced hereby as to
which Early Settlement of the related Purchase Contracts is not effected, to the
undersigned at the address indicated below unless a different name and address
have been indicated below. Pledged Treasury Securities deliverable upon such
Early Settlement will be transferred in accordance with the transfer
instructions set forth below. If shares are to be registered in the name of a
Person other than the undersigned, the undersigned will pay any transfer tax
payable incident thereto.

Dated: ___________________________        ________________________________
                                                      Signature

Signature Guarantee: _____________________________________

                                     B-12
<PAGE>

          Number of Securities evidenced as to which Early Settlement of the
related Purchase Contracts is being elected:

If shares of Common Stock or Treasury      REGISTERED HOLDER
PIES Certificates are to be registered
in the name of and delivered to, and
Pledged Treasury Securities are to be
transferred to, a Person other than the
Holder, please print such Person's name
and address:
                                           Please print name and address of
                                           Registered Holder:
_______________________________________    _____________________________________
               Name                                       Name

_______________________________________    _____________________________________
             Address                                    Address
_______________________________________    _____________________________________
_______________________________________    _____________________________________
_______________________________________    _____________________________________

Social Security or other
Taxpayer Identification                    _____________________________________
Number, if any

Transfer Instructions for Pledged Treasury Securities Transferable Upon Early
Settlement or a Termination Event:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

                                     B-13
<PAGE>

                    [TO BE ATTACHED TO GLOBAL CERTIFICATES]

           SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

The following increases or decreases in this Global Certificate have been made:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                               Number of Treasury
                       Amount of decrease in        Amount of increase in      PIES evidenced by this     Signature of authorized
                     Number of  Treasury PIES     Number of Treasury PIES      Global Certificate          officer of Purchase
                         evidenced by the            evidenced by the            following such             Contract Agent or
          Date          Global Certificate          Global Certificate        decrease or increase        Securities Custodian
------------------------------------------------------------------------------------------------------------------------------------
          <S>        <C>                           <C>                        <C>                         <C>
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
</TABLE>

                                     B-14
<PAGE>

                                                                       EXHIBIT C

                    INSTRUCTION TO PURCHASE CONTRACT AGENT

The Chase Manhattan Bank, as Purchase Contract Agent
450 West 33/rd/ Street, 15/th/ Floor
New York, New York 10001
Attention: Capital Markets Fiduciary Services

     Re:  _______ [Corporate PIES] [Treasury PIES] of Dominion Resources, Inc.
         (the "Company")

     The undersigned Holder hereby notifies you that it has Transferred to Bank
One Trust Company, N.A., as Securities Intermediary, for credit to the
Collateral Account, $______ aggregate principal amount of [Senior Notes]
[Treasury Securities] in exchange for the [Pledged Senior Notes] [Pledged
Treasury Securities] held in the Collateral Account, in accordance with the
Pledge Agreement, dated as of October 12, 2000 (the "Pledge Agreement"; unless
otherwise defined herein, terms defined in the Pledge Agreement are used herein
as defined therein), between you, the Company, the Collateral Agent and the
Securities Intermediary. The undersigned Holder has paid all applicable fees
relating to such exchange. The undersigned Holder hereby instructs you to
instruct the Collateral Agent to release to you on behalf of the undersigned
Holder the [Pledged Senior Notes] [Pledged Treasury Securities] related to the
above-captioned [Corporate PIES] [Treasury PIES].

Date: _______________________           ____________________________________
                                                      Signature

                                        Signature Guarantee:________________

Please print name and address of Registered Holder:
____________________________________    ____________________________________
Name                                    Social Security or other Taxpayer
                                        Identification Number, if any

Address

____________________________________
____________________________________
____________________________________

<PAGE>

                                                                       EXHIBIT D

                      NOTICE FROM PURCHASE CONTRACT AGENT
                                  TO HOLDERS
        (Transfer of Collateral upon Occurrence of a Termination Event)

[HOLDER]

_______________________
_______________________
Attention:
Telecopy: __________

     Re:  _______ [Corporate PIES] [Treasury PIES] of Dominion Resources, Inc.
          (the "Company")

     Please refer to the Purchase Contract Agreement, dated as of October 12,
2000 (the "Purchase Contract Agreement"; unless otherwise defined herein, terms
defined in the Purchase Contract Agreement are used herein as defined therein),
among the Company and the undersigned, as Purchase Contract Agent and as
attorney-in-fact for the holders of Corporate PIES and Treasury PIES from time
to time.

     We hereby notify you that a Termination Event has occurred and that [the
Senior Notes][the Treasury Securities] underlying your ownership interest in
_____ [Corporate PIES][Treasury PIES] have been released and are being held by
us for your account pending receipt of transfer instructions with respect to
such [Senior Notes][Treasury Securities] (the "Released Securities").

     Pursuant to Section 3.15 of the Purchase Contract Agreement, we hereby
request written transfer instructions with respect to the Released Securities.
Upon receipt of your instructions and upon transfer to us of your [Corporate
PIES][Treasury PIES] effected through book-entry transfer or by delivery to us
of your [Corporate PIES Certificate][Treasury PIES Certificate], we shall
transfer the Released Securities by book-entry transfer, or other appropriate
procedures, in accordance with your instructions. In the event you fail to
effect such transfer or delivery, the Released Securities and any interest
thereon, shall be held in our name or in the name of our nominee in trust for
your benefit, until the earlier of such time as (A) such [Corporate
PIES][Treasury PIES] are transferred or your [Corporate PIES
Certificate][Treasury PIES Certificate] is surrendered or satisfactory evidence
is provided that your [Corporate PIES Certificate][Treasury PIES Certificate]
has been destroyed, lost or stolen, together with any indemnification that we or
the Company may require and (B) the expiration of the time period specified in
the abandoned property laws of the relevant State.

Date: ______________         By:  The Chase Manhattan Bank, as Purchase Contract
                                  Agent

                                  ______________________________________
                                  Name:
                                  Title:
<PAGE>

                                                                       EXHIBIT E

                           NOTICE TO SETTLE BY CASH

The Chase Manhattan Bank, as Purchase Contract Agent
450 West 33/rd/ Street, 15/th/ Floor
New York, New York  10001
Attention: Capital Markets Fiduciary Services

     Re:  _______ [Corporate PIES] [Treasury PIES] of Dominion Resources, Inc.
          (the "Company")

     The undersigned Holder hereby irrevocably notifies you in accordance with
Section 5.4 of the Purchase Contract Agreement, dated as of October 12, 2000
(the "Purchase Contract Agreement"; unless otherwise defined herein, terms
defined in the Purchase Contract Agreement are used herein as defined therein),
between the Company and you, as Purchase Contract Agent and as Attorney-in-Fact
for the Holders of the Purchase Contracts, that such Holder has elected to pay
to the Securities Intermediary for deposit in the Collateral Account, prior to
11:00 a.m. (New York City time) on the [fifth Business Day][Business Day]
immediately preceding the Purchase Contract Settlement Date (in lawful money of
the United States by certified or cashiers' check or wire transfer, in
immediately available funds), $______ as the Purchase Price for the shares of
Common Stock issuable to such Holder by the Company under the related Purchase
Contract on the Purchase Contract Settlement Date. The undersigned Holder hereby
instructs you to notify promptly the Collateral Agent of the undersigned
Holder's election to make such cash settlement with respect to the Purchase
Contracts related to such Holder's [Corporate PIES] [Treasury PIES] and to
release the related [Senior Notes] [Treasury Securities] to such Holder upon
such Cash Settlement.

Date: _______________________        ____________________________________
                                                  Signature

                                     Signature Guarantee:________________
<PAGE>

Please print name and address of Registered Holder:

_________________________________    _____________________________________
Name                                 Social Security or other Taxpayer
                                     Identification Number, if any

Address

_________________________________

_________________________________

_________________________________

                                      E-2
<PAGE>

                                                                       EXHIBIT F

                      NOTICE FROM PURCHASE CONTRACT AGENT
                   TO COLLATERAL AGENT AND INDENTURE TRUSTEE
             (Settlement of Purchase Contract through Remarketing)

Bank One Trust Company, N.A.
153 West 51/st/ Street
New York, New York  10019
Attention: Corporate Trust Administration
Telecopy:  (212) 373-1383

The Chase Manhattan Bank, as Indenture Trustee
450 West 33/rd/ Street, 15/th/ Floor
New York, New York 10001
Attention:  Capital Markets Fiduciary Services
Telecopy: : (212) 946-8159/8160

     Re:  Corporate PIES of Dominion Resources, Inc. (the "Company")

      Please refer to the Purchase Contract Agreement, dated as of October 12,
2000 (the "Purchase Contract Agreement"; unless otherwise defined herein, terms
defined in the Purchase Contract Agreement are used herein as defined therein),
between the Company and the undersigned, as Purchase Contract Agent and as
attorney-in-fact for the holders of PIES from time to time.

      In accordance with Section 5.4 of the Purchase Contract Agreement and,
based on instructions received from Holders of Corporate PIES prior to 5:00 p.m.
(New York City time) on the seventh Business Day immediately preceding the
Purchase Contract Settlement Date and notice from the Securities Intermediary
regarding Cash Settlements received prior to 11:00 a.m. (new York City time) on
the fifth Business Day immediately preceding the Purchase Contract Settlement
Date, we hereby notify you that $_____ in aggregate principal amount of Senior
Notes is to be tendered for purchase in the Remarketing.

Date: ______________         By:  The Chase Manhattan Bank, as Purchase Contract
                                  Agent

                                  _________________________________________
                                  Name:
                                  Title:
<PAGE>

                                                                       EXHIBIT G

                    NOTICE FROM HOLDER TO INDENTURE TRUSTEE
       (Election to Tender for Purchase Senior Notes in the Remarketing)

The Chase Manhattan Bank, as Indenture Trustee
450 West 33/rd/ Street
New York, New York  10001
Attention: Capital Markets Fiduciary Services
Telecopy:  (212) 946-8159/8160

               Re:  $______ in aggregate principal amount of 2000 Series G 8.05%
                    Senior Notes due November 15, 2006 of Dominion Resources,
                    Inc., a Virginia corporation (the "Company")

          The undersigned Holder hereby irrevocably notifies you in accordance
with [Section 5.4(d)(iv)] [Section 5.9(f)] of the Purchase Contract Agreement,
dated as of October 12, 2000 (the "Purchase Contract Agreement"; unless
otherwise defined herein, terms defined in the Purchase Contract Agreement are
used herein as defined therein), between the Company and The Chase Manhattan
Bank, as Purchase Contract Agent, that it is a Holder of [____ Treasury PIES
that continues to hold the Senior Notes that were originally part of the ____
Corporate PIES before they were converted into Treasury PIES] [____ Corporate
PIES that effected Early Settlement but continues to hold the Senior Notes
originally part of the ____ Corporate PIES] [____ Treasury PIES that effected
Early Settlement but continues to hold the Senior Notes originally part of the
____ Corporate PIES that were converted into the ____ Treasury PIES] and it is
electing to tender for purchase in the Remarketing $_____ in aggregate principal
amount of Senior Notes.

Date: _______________________              ____________________________________
                                                         Signature

                                           Signature
                                           Guarantee:__________________________
<PAGE>

Please print name and address of Registered Holder:
____________________________________       ____________________________________
Name                                       Social Security or other Taxpayer
                                           Identification Number, if any
Address

____________________________________

____________________________________

____________________________________

                                      G-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]