Document:

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                                                                 EXHIBIT 10(d)

                                PLEDGE AGREEMENT

         THIS PLEDGE AGREEMENT (as amended, restated, supplemented, or
otherwise modified, the "Pledge Agreement"), dated as of August 26, 1998, is
made by RARE HOSPITALITY INTERNATIONAL, INC., a corporation organized under the
laws of the state of Georgia (the "Pledgor"), in favor of FIRST UNION NATIONAL
BANK, a national banking association, as Administrative Agent (the
"Administrative Agent"), for the ratable benefit of itself and the financial
institutions (the "Lenders") that are, or may from time to time become, parties
to the Credit Agreement referred to below.

                              STATEMENT OF PURPOSE

         Pursuant to the terms of the Amended and Restated Credit Agreement
dated the date hereof (as amended, restated, supplemented or otherwise
modified, the "Credit Agreement") by and among the Pledgor, as borrower, the
Lenders who are or may become party thereto, the Administrative Agent and
BankBoston, N.A. and Fleet National Bank, as Co-Agents, the Lenders have agreed
to make certain Extensions of Credit to the Pledgor as more particularly
described therein.

         The Pledgor is the legal and beneficial owner of (a) the shares of
Pledged Stock (as hereinafter defined) issued by certain corporations as
specified on Schedule I attached hereto and incorporated herein by reference
(collectively, the "Issuers") and (b) the Partnership/LLC Interests (as
hereinafter defined) in the partnerships and limited liability companies listed
on Schedule I hereto (collectively, the "Partnerships/LLCs").

         In connection with the transactions contemplated by the Credit
Agreement and as a condition precedent thereto, the Lenders have requested, and
the Pledgor has agreed to execute and deliver this Pledge Agreement together
with the Pledged Stock to the Administrative Agent, for the ratable benefit of
itself and the Lenders.

         NOW, THEREFORE, in consideration of the foregoing premises and to
induce the Administrative Agent and the Lenders to enter into and make
available Extensions of Credit pursuant to the Credit Agreement, the Pledgor
hereby agrees with the Administrative Agent, for the ratable benefit of itself
and the Lenders, as follows:

         1.       Defined Terms. Unless otherwise defined herein, terms which
are defined in the Credit Agreement and used herein are so used as so defined,
and the following terms shall have the following meanings:

                  "Code" means the Uniform Commercial Code as in effect in the
         State of North Carolina; provided that if by reason of mandatory
         provisions of law, the

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         perfection or the effect of perfection or non-perfection of the
         security interests in any Collateral is governed by the Uniform
         Commercial Code as in effect in a jurisdiction other than North
         Carolina, "Code" means the Uniform Commercial Code as in effect in
         such other jurisdiction for purposes of the provisions hereof relating
         to such perfection or effect of perfection or non-perfection.

                  "Collateral" means the Stock Collateral and the
         Partnership/LLC Collateral.

                  "Obligations" means the Pledgor's obligations under the
         Credit Agreement, and each Loan Document to which such Pledgor is a
         party.

                  "Partnership/LLC Collateral" means all of the Partnership/LLC
         Interests of the Pledgor in the Partnerships/LLCs and all Proceeds
         therefrom.

                  "Partnership/LLC Interests" means the entire partnership or
         membership interest of the Pledgor in each Partnership/LLC listed on
         Schedule I hereto, including, without limitation, the Pledgor's
         capital account, its interest as a partner or member in the net cash
         flow, net profit and net loss, and items of income, gain, loss,
         deduction and credit of the Partnerships/LLCs, its interest in all
         distributions made or to be made by the Partnerships/LLCs to the
         Pledgor and all of the other economic rights, titles and interests of
         the Pledgor as a partner or member of the Partnerships/LLCs, whether
         set forth in the partnership agreement or membership agreement of the
         Partnerships/LLCs, by separate agreement or otherwise.

                  "Pledge Agreement" means this Pledge Agreement, as amended,
         restated, supplemented or otherwise modified from time to time.

                  "Pledged Stock" means the shares of capital stock of each
         Issuer listed on Schedule I hereto, together with all stock
         certificates, options or rights of any nature whatsoever that may be
         issued or granted by such Issuer to the Pledgor while this Pledge
         Agreement is in effect.

                  "Proceeds" means all "proceeds" as such term is defined in
         Section 9-306(1) of the Code on the date hereof and, in any event,
         shall include, without limitation, all dividends or other income from
         the Pledged Stock and the Partnership/LLC Interests, collections
         thereon, proceeds of sale thereof or distributions with respect
         thereto.

                  "Stock Collateral" means the Pledged Stock and all Proceeds
         therefrom.

         2.       Pledge and Grant of Security Interest. The Pledgor hereby
delivers to the Administrative Agent, for the ratable benefit of itself and the
Lenders, all the Pledged Stock and hereby grants to the Administrative Agent,
for the ratable benefit of itself and the Lenders, a first priority security
interest in the Pledged Stock and all other Collateral, as collateral security
for the

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prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations.

         3.       Stock Powers; Register of Pledge. Concurrently with the
delivery to the Administrative Agent of each certificate representing one or
more shares of Pledged Stock, the Pledgor shall deliver an undated stock power
covering such certificate, duly executed in blank by the Pledgor with, if the
Administrative Agent so requests, signature guaranteed.

         4.       Pledgor Remains Liable. Anything herein to the contrary
notwithstanding, (a) the Pledgor shall remain liable to perform all of its
duties and obligations as a partner or member of the Partnerships/LLCs to the
same extent as if this Pledge Agreement had not been executed, (b) the exercise
by the Administrative Agent or any Lender of any of its rights hereunder shall
not release the Pledgor from any of its duties or obligations as a partner or
member of the Partnerships/LLCs, and (c) neither the Administrative Agent nor
any Lender shall have any obligation or liability as a partner or member of the
Partnerships/LLCs by reason of this Pledge Agreement.

         5.       Representations and Warranties. To induce the Administrative
Agent and the Lenders to execute the Credit Agreement and make any Extensions
of Credit and to accept the security contemplated hereby, the Pledgor hereby
makes to the Administrative Agent and the Lenders all of the representations
and warranties made by the Pledgor in the Credit Agreement and the other Loan
Documents, as if the same was set forth herein in full and additionally
represents and warrants that:

                  (a)      as of the Closing Date, the shares of Pledged Stock
         listed on Schedule I constitute all of the issued and outstanding
         shares of all classes of the capital stock of each Issuer;

                  (b)      all the shares of the Pledged Stock have been duly
         and validly issued and are fully paid and nonassessable;

                  (c)      as of the Closing Date, the Pledgor is the record
         and beneficial owner of, and has good and marketable title to, the
         Pledged Stock listed on Schedule I, free of any and all Liens or
         options in favor of, or claims of, any other Person, except the Lien
         created by this Pledge Agreement and the Liens permitted under Section
         10.3 of the Credit Agreement; and

                  (d)      upon delivery to the Administrative Agent of the
         stock certificates evidencing the Pledged Stock, the Lien granted
         pursuant to this Pledge Agreement will constitute a valid, perfected
         first priority Lien on the Collateral, enforceable as such against all
         creditors of the Pledgor and any Persons purporting to purchase any of
         the Collateral from the Pledgor.

         6.       Certain Covenants. The Pledgor covenants and agrees with the
Administrative Agent, for the ratable benefit of itself and the Lenders, that,
from and after the date of this Pledge Agreement until the Obligations are paid
in full and the Commitments are terminated:

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                  (a)      The Pledgor agrees that as a partner or member in
         the Partnerships/LLCs it will abide by, perform and discharge each and
         every obligation, covenant and agreement to be abided by, performed or
         discharged by the Pledgor under the terms of the partnership
         agreements and operating agreements, as applicable, of the
         Partnerships/LLCs, except where the failure to do so could not
         reasonably be expected to have a Material Adverse Effect, at no cost
         or expense to the Administrative Agent and the Lenders.

                  (b)      If the Pledgor shall, as a result of its ownership
         of the Collateral, become entitled to receive or shall receive any
         stock certificate (including, without limitation, any certificate
         representing a stock dividend or a distribution in connection with any
         reclassification, increase or reduction of capital or any certificate
         issued in connection with any reorganization), whether in addition to,
         in substitution of, as a conversion of, or in exchange for any of the
         Collateral, or otherwise in respect thereof, the Pledgor shall accept
         the same as the agent of the Administrative Agent, hold the same in
         trust for the Administrative Agent and deliver the same forthwith to
         the Administrative Agent in the exact form received, duly indorsed by
         the Pledgor to the Administrative Agent, if required, together with an
         undated stock power covering such certificate duly executed in blank
         by the Pledgor, to be held by the Administrative Agent, subject to the
         terms hereof, as additional collateral security for the Obligations.
         Further, if the Pledgor shall, as a result of its ownership of the
         Collateral, become entitled to receive or shall receive any options or
         rights, whether in addition to, in substitution of, as a conversion
         of, or in exchange for any of the Collateral, or otherwise in respect
         thereof, the Pledgor shall assign such options or rights as the case
         may be to the Administrative Agent, to be held by the Administrative
         Agent, subject to the terms hereof, as additional collateral security
         for the Obligations. In addition, any sums paid upon or in respect of
         the Collateral upon the liquidation or dissolution of any Issuer or
         Partnership/LLC shall be held by the Administrative Agent as
         additional collateral security for the Obligations.

                  (c)      Without the prior written consent of the
         Administrative Agent, the Pledgor will not (i) vote to enable, or take
         any other action to permit, any Issuer or Partnership/LLC to issue any
         stock, partnership interests, limited liability company interests or
         other equity securities of any nature or to issue any other securities
         convertible into or granting the right to purchase or exchange for any
         stock, partnership interests, limited liability company interests or
         other equity securities of any nature of such Issuer or
         Partnership/LLC except stock, partnership interests, limited liability
         company interests or other securities issued to the Pledgor and
         pledged to the Administrative Agent pursuant to the terms of this
         Pledge Agreement, (ii) sell, assign, transfer, exchange, or otherwise
         dispose of, or grant any option with respect to, the Collateral, or
         (iii) create, incur or permit to exist any Lien or option in favor of,
         or any claim of any Person with respect to, any of the Collateral, or
         any interest therein, except for the Lien provided for by this Pledge
         Agreement and Liens permitted under Section 10.3 of the Credit
         Agreement. The Pledgor will defend the right, title and interest of
         the Administrative Agent in and to the Collateral against the claims
         and demands of all Persons whomsoever.

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                  (d)      At any time and from time to time, upon the written
         request of the Administrative Agent, and at the sole expense of the
         Pledgor, the Pledgor will promptly and duly execute and deliver such
         further instruments and documents and take such further actions as the
         Administrative Agent may reasonably request for the purposes of
         obtaining or preserving the full benefits of this Pledge Agreement and
         of the rights and powers herein granted. If any amount payable under
         or in connection with any of the Collateral shall be or become
         evidenced by any promissory note, other instrument or chattel paper,
         such note, instrument or chattel paper shall be immediately delivered
         to the Administrative Agent, duly endorsed in a manner satisfactory to
         the Administrative Agent, to be held as Collateral pursuant to this
         Pledge Agreement.

                  (e)      The Pledgor agrees to pay, and to save the
         Administrative Agent and the Lenders harmless from, any and all
         liabilities with respect to, or resulting from any delay in paying,
         any and all stamp, excise, sales or other similar taxes which may be
         payable or determined to be payable with respect to any of the
         Collateral or in connection with any of the transactions contemplated
         by this Pledge Agreement.

                  (f)      Within ten (10) Business Days following the
         formation or acquisition of any Material Subsidiary of the Pledgor,
         the Pledgor agrees to execute a new pledge agreement or a supplement
         to this Pledge Agreement, as applicable, and such other documents and
         instruments as required pursuant to Section 8.12 of the Credit
         Agreement.

         7.       Cash Dividends and Distributions; Voting Rights. Unless an
Event of Default shall have occurred and be continuing and the Administrative
Agent shall have given notice to the Pledgor of the Administrative Agent's
intent to exercise its rights pursuant to Paragraph 8 below, the Pledgor shall
be permitted to receive all cash dividends and shareholder, partnership and
membership distributions paid in accordance with the terms of the Credit
Agreement in respect of the Collateral and to exercise all voting and
corporate, partnership or membership rights, as applicable, with respect to the
Collateral; provided, that no vote shall be cast or corporate, partnership or
membership right exercised or other action taken which would impair in any
material respect the Collateral or which would result in any violation of any
provision of the Credit Agreement, the Notes, this Pledge Agreement or any
other Loan Document.

         8.       Rights of the Administrative Agent.

         (a)      If an Event of Default shall occur and be continuing and the
Administrative Agent shall give notice of its intent to exercise such rights to
the Pledgor, (i) the Administrative Agent shall have the right to receive any
and all cash dividends paid in respect of the Pledged Stock and partnership and
membership distributions in respect of the Partnership/LLC Interests and make
application thereof to the Obligations in the order set forth in Section 4.5 of
the Credit Agreement and (ii) all shares of the Pledged Stock and the
Partnership/LLC Interests shall be registered in the name of the Administrative
Agent or its nominee, and the Administrative Agent or its nominee may
thereafter exercise (A) all voting, corporate, partnership, membership and
other rights pertaining to such shares of the Pledged Stock or Partnership/LLC
Interests at any meeting of shareholders, partners or members of the applicable
Issuer or Partnership/LLC or otherwise and (B) any and all

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rights of conversion, exchange, subscription and any other rights, privileges
or options pertaining to such shares of the Pledged Stock or Partnership/LLC
Interests as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the Pledged
Stock or Partnership/LLC Interests upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the corporate
structure of the applicable Issuer or Partnership/LLC, or upon the exercise by
the Pledgor or the Administrative Agent of any right, privilege or option
pertaining to such shares of the Pledged Stock or the Partnership/LLC
Interests, and in connection therewith, the right to deposit and deliver any
and all of the Pledged Stock or the Partnership/LLC Interests with any
committee, depositary, transfer agent, registrar or other designated agency
upon such terms and conditions as it may determine), all without liability
except to account for property actually received by it, but the Administrative
Agent shall have no duty to the Pledgor to exercise any such right, privilege
or option and shall not be responsible for any failure to do so or delay in so
doing.

         (b)      The rights of the Administrative Agent and the Lenders
hereunder shall not be conditioned or contingent upon the pursuit by the
Administrative Agent or any Lender of any right or remedy against the Pledgor
or against any other Person which may be or become liable in respect of all or
any part of the Obligations or against any collateral security therefor,
guarantee thereof or right of offset with respect thereto. Neither the
Administrative Agent nor any Lender shall be liable for any failure to demand,
collect or realize upon all or any part of the Collateral or for any delay in
doing so, nor shall the Administrative Agent be under any obligation to sell or
otherwise dispose of any Collateral upon the request of the Pledgor or any
other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof.

         9.       Remedies. If an Event of Default shall occur and be
continuing, upon the request of the Required Lenders, the Administrative Agent
shall exercise, on behalf of itself and the Lenders, all rights and remedies
granted in this Pledge Agreement and in any other instrument or agreement
securing, evidencing or relating to the Obligations, and in addition thereto,
all rights and remedies of a secured party under the Code. Without limiting the
generality of the foregoing with regard to the scope of the Administrative
Agent's remedies, the Administrative Agent, without demand of performance or
other demand, presentment, protest, advertisement or notice of any kind (except
any notice required by Applicable Law referred to below) to or upon the
Pledgor, any Issuer, any Partnership/LLC or any other Person (all and each of
which demands, defenses, advertisements and notices are hereby waived), may in
such circumstances forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and/or may forthwith sell, assign, give option
or options to purchase or otherwise dispose of and deliver the Collateral or
any part thereof (or contract to do any of the foregoing), in one or more
parcels at public or private sale or sales, in the over-the-counter market, at
any exchange, broker's board or office of the Administrative Agent or any
Lender or elsewhere upon such terms and conditions as it may deem advisable and
at such prices as it may deem best, for cash or on credit or for future
delivery without assumption of any credit risk. The Administrative Agent or any
Lender shall have the right upon any such public sale or sales, and, to the
extent permitted by Applicable Law, upon any such private sale or sales, to
purchase the whole or any part of the Collateral so sold, free of any right or
equity of redemption in the Pledgor, which right or equity is hereby waived or
released. The Administrative Agent shall apply any Proceeds from time to time
held by it and the net proceeds of any such collection,

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recovery, receipt, appropriation, realization or sale, after deducting all
reasonable costs and expenses of every kind incurred in respect thereof or
incidental to the care or safekeeping of any of the Collateral or in any way
relating to the Collateral or the rights of the Administrative Agent and the
Lenders hereunder, including, without limitation, reasonable attorneys' fees
and disbursements of counsel thereto, to the payment in whole or in part of the
Obligations, in the order set forth in Section 4.5 of the Credit Agreement, and
only after such application and after the payment by the Administrative Agent
of any other amount required by any provision of Applicable Law, including,
without limitation, Section 9-504(1)(c) of the Code, need the Administrative
Agent account for the surplus, if any, to the Pledgor. To the extent permitted
by Applicable Law, the Pledgor waives all claims, damages and demands it may
acquire against the Administrative Agent or any Lender arising out of the
exercise by them of any rights hereunder. If any notice of a proposed sale or
other disposition of Collateral shall be required by Applicable Law, such
notice shall be deemed reasonable and proper if given at least five (5)
Business Days before such sale or other disposition. The Pledgor further waives
and agrees not to assert any rights or privileges which it may acquire under
Section 9-112 of the Code. Nothing in this Section 9 or otherwise in this
Pledge Agreement shall be construed to require the Administrative Agent to give
any notice of an action not otherwise required by Applicable Law and the
express provision of the Pledge Agreement, the Credit Agreement or any other
Loan Document.

         10.      Private Sales.

         (a)      The Pledgor recognizes that the Administrative Agent may be
unable to effect a public sale of any or all the Pledged Stock, by reason of
certain prohibitions contained in the Securities Act and applicable state
securities laws or otherwise, and may be compelled to resort to one or more
private sales thereof to a restricted group of purchasers which will be obliged
to agree, among other things, to acquire such securities for their own account
for investment and not with a view to the distribution or resale thereof. The
Pledgor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner. The
Administrative Agent shall be under no obligation to delay a sale of any of the
Pledged Stock for the period of time necessary to permit the applicable Issuer
to register such securities for public sale under the Securities Act, or under
applicable state securities laws, even if the applicable Issuer would agree to
do so.

         (b)      The Pledgor further agrees to use commercially reasonable
efforts to do or cause to be done all such other acts as may be necessary to
make such sale or sales of all or any portion of the Collateral pursuant to
this Paragraph 10 valid and binding and in compliance with any and all other
Applicable Laws. The Pledgor further agrees that a breach of any of the
covenants contained in this Paragraph 10 will cause irreparable injury to the
Administrative Agent and the Lenders not compensable in damages, that the
Administrative Agent and the Lenders have no adequate remedy at law in respect
of such breach and, as a consequence, that each and every covenant contained in
this Paragraph 10 shall be specifically enforceable against the Pledgor, and
the Pledgor hereby waives and agrees not to assert any defenses against an
action for specific performance of such covenants except for a defense that no
Event of Default has occurred under the Credit Agreement.

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         11.      Amendments, etc. With Respect to the Obligations. The Pledgor
shall remain obligated hereunder, and the Collateral shall remain subject to
the Lien granted hereby, notwithstanding that, without any reservation of
rights against the Pledgor, and without notice to or further assent by the
Pledgor, any demand for payment of any of the Obligations made by the
Administrative Agent or any Lender may be rescinded by the Administrative Agent
or such Lender, and any of the Obligations continued, and the Obligations, or
the liability of the Pledgor or any other Person upon or for any part thereof,
or any collateral security or guarantee therefor or right of offset with
respect thereto, may, from time to time, in whole or in part, be renewed,
extended, amended, modified, accelerated, compromised, waived, surrendered, or
released by the Administrative Agent or any Lender, and the Credit Agreement,
the Notes, any other Loan Documents and any other documents executed and
delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or part, as the Lenders (or the Required Lenders, as the
case may be) may deem advisable from time to time, and any guarantee, right of
offset or other collateral security at any time held by the Administrative
Agent or any Lender for the payment of the Obligations may be sold, exchanged,
waived, surrendered or released. Neither the Administrative Agent nor any
Lender shall have any obligation to protect, secure, perfect or insure any
other Lien at any time held by it as security for the Obligations or any
property subject thereto. The Pledgor waives any and all notice of the
creation, renewal, extension or accrual of any of the Obligations and notice of
or proof of reliance by the Administrative Agent or any Lender upon this Pledge
Agreement; the Obligations, and any of them, shall conclusively be deemed to
have been created, contracted or incurred in reliance upon this Pledge
Agreement; and all dealings between the Pledgor, on the one hand, and the
Administrative Agent and the Lenders, on the other, shall likewise be
conclusively presumed to have been had or consummated in reliance upon this
Pledge Agreement. The Pledgor waives diligence, presentment, protest, demand
for payment and notice of default or nonpayment to or upon the Pledgor with
respect to the Obligations.

         12.      Limitation on Duties Regarding Collateral. The Administrative
Agent's sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession, under Section 9-207 of the
Code or otherwise, shall be to deal with it in the same manner as the
Administrative Agent deals with similar securities and property for its own
account. Neither the Administrative Agent, any Lender nor any of their
respective directors, officers, employees or agents shall be liable for failure
to demand, collect or realize upon any of the Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of the Pledgor or otherwise.

         13.      Powers Coupled with an Interest. All authorizations and
agencies herein contained with respect to the Collateral constitute irrevocable
powers coupled with an interest.

         14.      Severability. Any provision of this Pledge Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

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         15.      Paragraph Headings. The paragraph headings used in this
Pledge Agreement are for convenience of reference only and are not to affect
the construction hereof or be taken into consideration in the interpretation
hereof.

         16.      No Waiver; Cumulative Remedies. Neither the Administrative
Agent nor any Lender shall by any act (except by a written instrument pursuant
to Paragraph 17 hereof) be deemed to have waived any right or remedy hereunder
or to have acquiesced in any Default or Event of Default or in any breach of
any of the terms and conditions hereof. No failure to exercise, nor any delay
in exercising, on the part of the Administrative Agent or any Lender, any
right, power or privilege hereunder shall operate as a waiver thereof. No
single or partial exercise of any right, power or privilege hereunder shall
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. A waiver by the Administrative Agent or any Lender
of any right or remedy hereunder on any one occasion shall not be construed as
a bar to any right or remedy which the Administrative Agent or such Lender
would otherwise have on any future occasion. The rights and remedies herein
provided are cumulative, may be exercised singly or concurrently and are not
exclusive of any other rights or remedies provided by law.

         17.      Waivers and Amendments; Successors and Assigns; Governing
Law. None of the terms or provisions of this Pledge Agreement may be amended,
supplemented or otherwise modified except by a written instrument executed by
the Pledgor and the Administrative Agent; provided that any consent by the
Administrative Agent to any waiver, amendment, supplement or modification
hereto shall be subject to approval thereof by the Lenders or Required Lenders,
as applicable, in accordance with Section 13.11 of the Credit Agreement. This
Pledge Agreement shall be binding upon the successors and assigns of the
Pledgor and shall inure to the benefit of the Administrative Agent, the Lenders
and their respective successors and assigns. This Pledge Agreement shall be
governed by, and construed and interpreted in accordance with, the laws of the
State of North Carolina.

         18.      Notices. All notices and communications hereunder shall be
given to the addresses and otherwise in accordance with Section 13.1 of the
Credit Agreement.

         19.      Control Agreement; Acknowledgement by Issuers and
Partnership/LLC. (a) The Pledgor hereby authorizes and instructs each Issuer
and Partnership/LLC to comply, and each Issuer and Partnership LLC hereby
agrees to so comply, with any instruction received thereby from the
Administrative Agent in accordance with the terms of this Pledge Agreement with
respect to the Collateral, without any consent or further instructions from the
Pledgor (or other registered owner), and the Pledgor agrees that such Issuer
and Partnership/LLC shall be fully protected in so complying. Each Issuer and
Partnership/LLC agrees that its agreement set forth in the preceding sentence
shall be sufficient to create in favor of the Administrative Agent, for the
benefit of the Lenders, "control" of the Partnership/LLC Interests within the
meaning of such term under Section 8-106(c) of the Code. (Notwithstanding the
foregoing, nothing in this Pledge Agreement is intended or shall be construed
to mean or imply that the Partnership/LLC Interests constitute "securities"
within the meaning of such term under Section 8-102(a)(15) of the Code or
otherwise to limit or modify the application of Section 8-103(c) of the Code.
Rather, the Administrative Agent has requested that this provision be included
in this Pledge Agreement solely out of an

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abundance of caution in the event the Partnership/LLC Interests are,
nevertheless, deemed to constitute "securities" under the Code.)

         (b)      Each Issuer and Partnership/LLC acknowledges receipt of a
copy of this Pledge Agreement and agrees to be bound thereby and to comply with
the terms thereof insofar as such terms are applicable to it. Each Issuer and
Partnership/LLC agrees to notify the Administrative Agent promptly in writing
of the occurrence of any of the events described in Section 6(c) of this Pledge
Agreement. Each Issuer and Partnership/LLC further agrees that the terms of
Section 10 of this Pledge Agreement shall apply to it with respect to all
actions that may be required of it under or pursuant to or arising out of
Section 10 of this Pledge Agreement.

         20.      Authority of Administrative Agent. The Pledgor acknowledges
that the rights and responsibilities of the Administrative Agent under this
Pledge Agreement with respect to any action taken by the Administrative Agent
or the exercise or non-exercise by the Administrative Agent of any option,
voting right, request, judgment or other right or remedy provided for herein or
resulting or arising out of this Pledge Agreement shall, as between the
Administrative Agent and the Lenders, be governed by the Credit Agreement and
by such other agreements with respect thereto as may exist from time to time
among them, but, as between the Administrative Agent and the Pledgor, the
Administrative Agent shall be conclusively presumed to be acting as agent for
itself and the Lenders with full and valid authority so to act or refrain from
acting, and neither the Pledgor nor any Issuer or Partnership/LLC shall be
under any obligation, or entitlement, to make any inquiry respecting such
authority.

         21.      Consent to Jurisdiction. The Pledgor hereby irrevocably
consents to the personal jurisdiction of the state and federal courts located
in Mecklenburg County, North Carolina, in any action, claim or other proceeding
arising out of or any dispute in connection with this Pledge Agreement, any
rights or obligations hereunder, or the performance of such rights and
obligations. The Pledgor hereby irrevocably consents to the service of a
summons and complaint and other process in any action, claim or proceeding
brought by the Administrative Agent or any Lender in connection with this
Pledge Agreement, any rights or obligations hereunder, or the performance of
such rights and obligations, on behalf of itself or its property, in the manner
provided in Section 13.1 of the Credit Agreement. Nothing in this Paragraph 21
shall affect the right of the Administrative Agent or any Lender to serve legal
process in any other manner permitted by Applicable Law or affect the right of
the Administrative Agent or any Lender to bring any action or proceeding
against the Pledgor or its properties in the courts of any other jurisdictions.

         22.      Binding Arbitration; Waiver of Jury Trial.

         (a)      Binding Arbitration. Upon demand of any party, whether made
before or after institution of any judicial proceeding, any dispute, claim or
controversy arising out of, connected with or relating to this Pledge Agreement
or any other Loan Document ("Disputes"), between or among parties to this
Pledge Agreement or any other Loan Document shall be resolved by binding
arbitration as provided herein. Institution of a judicial proceeding by a party
does not waive the right of that party to demand arbitration hereunder.
Disputes may include, without limitation, tort claims, counterclaims, claims
brought as class actions, claims arising from Loan Documents

                                      10
<PAGE>   11
executed in the future, or claims concerning any aspect of the past, present or
future relationships arising out of or connected with the Loan Documents.
Arbitration shall be conducted under and governed by the Commercial Financial
Disputes Arbitration Rules (the "Arbitration Rules") of the American
Arbitration Association and Title 9 of the U.S. Code. All arbitration hearings
shall be conducted in Charlotte, North Carolina. The expedited procedures set
forth in Rule 51, et seq. of the Arbitration Rules shall be applicable to
claims of less than $1,000,000. All applicable statutes of limitation shall
apply to any Dispute. A judgment upon the award may be entered in any court
having jurisdiction. Notwithstanding anything foregoing to the contrary, any
arbitration proceeding demanded hereunder shall begin within ninety (90) days
after such demand thereof and shall be concluded within one-hundred and twenty
(120) days after such demand. These time limitations may not be extended unless
a party hereto shows cause for extension and then such extension shall not
exceed a total of sixty (60) days. The panel from which all arbitrators are
selected shall be comprised of licensed attorneys. The single arbitrator
selected for expedited procedure shall be a retired judge from the highest
court of general jurisdiction, state or federal, of the state where the hearing
will be conducted. The parties hereto do not waive any applicable Federal or
state substantive law except as provided herein. Notwithstanding the foregoing,
this paragraph shall not apply to any Hedging Agreement that is a Loan
Document.

         (b)      Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE
ADMINISTRATIVE AGENT, EACH LENDER AND THE PLEDGOR HEREBY IRREVOCABLY WAIVE
THEIR RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION, CLAIM OR
OTHER PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT,
THE NOTES OR THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR
THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.

         (c)      Preservation of Certain Remedies. Notwithstanding the
preceding binding arbitration provisions, the parties hereto and the other Loan
Documents preserve, without diminution, certain remedies that such Persons may
employ or exercise freely, either alone, in conjunction with or during a
Dispute. Each such Person shall have and hereby reserves the right to proceed
in any court of proper jurisdiction or by self help to exercise or prosecute
the following remedies: (i) all rights to foreclose against any real or
personal property or other security by exercising a power of sale granted in
the Loan Documents or under applicable law or by judicial foreclosure and sale,
(ii) all rights of self help including peaceful occupation of property and
collection of rents, set off, and peaceful possession of property, (iii)
obtaining provisional or ancillary remedies including injunctive relief,
sequestration, garnishment, attachment, appointment of receiver and in filing
an involuntary bankruptcy proceeding, and (iv) when applicable, a judgment by
confession of judgment. Preservation of these remedies does not limit the power
of an arbitrator to grant similar remedies that may be requested by a party in
a Dispute.

         23.      Entire Agreement; Term of Agreement. This Pledge Agreement,
together with the other Loan Documents, constitutes the entire agreement with
respect to the subject matter hereof and supersedes all prior agreements with
respect to the subject matter hereof. This Pledge Agreement shall remain in
effect from the Closing Date through and including the date upon which

                                      11
<PAGE>   12
all Obligations shall have been indefeasibly and irrevocably paid and satisfied
in full and the Commitments terminated.

                            [Signature Pages Follow]

                                      12
<PAGE>   13
         IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement
to be duly executed and delivered as of the date first above written.

[CORPORATE SEAL]                     RARE HOSPITALITY INTERNATIONAL, INC.

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

[CORPORATE SEAL]                     BUGABOO CREEK STEAK HOUSE, INC.

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

<PAGE>   14

                                                                      SCHEDULE I
                                                                      To Pledge
                                                                      Agreement

                          DESCRIPTION OF PLEDGED STOCK

                                  Subsidiaries

<TABLE>
<CAPTION>
=================================================================================================================================
                                                                                                                 Percentage of
                                                                                                                all Outstanding
                                                                                                                     issued
          Issuer                  Class of Stock            Certificate No.              No. of Shares           Capital Stock
---------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                       <C>                          <C>                    <C>
Bugaboo Creek Steak                   Common                       2                       1,000                      100%
   House, Inc.
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                    DESCRIPTION OF PARTNERSHIP/LLC INTEREST

                               Partnerships/LLCs

Partnership/LLC                                       Partnership/LLC Interest

None<PAGE>   1

                                                                     EXHIBIT 4.9

                            COX COMMUNICATIONS, INC.

                                       AND

                              THE BANK OF NEW YORK

                                     Trustee

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

                          SECOND SUPPLEMENTAL INDENTURE

                           Dated as of March 14, 2000

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

                           Supplementing the Indenture

                            Dated as of June 27, 1995

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

                 Creating a series of Debt Securities designated

                3% Exchangeable Subordinated Debentures due 2030

<PAGE>   2

         SECOND SUPPLEMENTAL INDENTURE, dated the 14th day of March, 2000,
between COX COMMUNICATIONS, INC., a corporation existing under the laws of the
State of Delaware (the "Company"), and THE BANK OF NEW YORK, a New York banking
corporation, having its principal corporate trust office in The City of New
York, New York, as trustee (the "Trustee").

         WHEREAS, the Company has heretofore executed and delivered to the
Trustee an Indenture dated as of June 27, 1995 (the "Original Indenture" and, as
supplemented to the date hereof, the "Indenture"), providing for the issuance by
the Company from time to time of its debentures, notes, bonds or other evidences
of indebtedness to be issued in one or more series (in the Original Indenture
and herein called the "Securities");

         WHEREAS, the Company, in the exercise of the power and authority
conferred upon and reserved to it under the provisions of the Original Indenture
and pursuant to appropriate resolutions of the Board of Directors, has duly
determined to make, execute and deliver to the Trustee this Second Supplemental
Indenture to the Original Indenture in order to establish the form and terms of,
and to provide for the creation and issue of, a series of Securities designated
as the "3% Exchangeable Subordinated Debentures due 2030" under the Original
Indenture in an aggregate original principal amount of up to $335,366,000 (the
"Debentures");

         WHEREAS, Section 9.01 of the Original Indenture provides, among other
things, that the Company, when authorized by a Board Resolution, and the
Trustee, at any time and from time to time, without the consent of any Holders,
may enter into an indenture supplemental to the Original Indenture to establish
the terms of Securities of any series as permitted by Sections 2.01 and 2.03 of
the Original Indenture; and

         WHEREAS, all things necessary to make the Securities, when executed by
the Company and authenticated and delivered by the Trustee and issued upon the
terms and subject to the conditions hereinafter and in the Indenture set forth
against payment therefor, the valid, binding and legal obligations of the
Company and to make this Second Supplemental Indenture a valid, binding and
legal agreement of the Company, have been duly authorized.

         NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSETH that, in
order to establish the terms of the series of Securities designated as the "3%
Exchangeable Subordinated Debentures due 2030," and for and in consideration of
the premises and of the covenants contained in the Original Indenture and in
this Second Supplemental Indenture and for other good and valuable consideration
the receipt and sufficiency of which are hereby acknowledged, it is mutually
covenanted and agreed as follows:

<PAGE>   3

                                   Article One

                              DEFINITIONS AND OTHER
                        PROVISIONS OF GENERAL APPLICATION

Section 101.      Definitions.

         Each capitalized term that is used herein and is defined in the
Original Indenture shall have the meaning specified in the Original Indenture
unless such term is otherwise defined herein, in which case such term shall have
the meaning specified herein.

         "Additional Distribution" shall mean any distribution to Holders of the
Debentures made pursuant to Section 206 as a result of a Reference Share
Distribution.

         "Adjusted Principal Amount" shall mean, for each $1,000 Original
Principal Amount of the Debentures, $1,000, minus any and all Extraordinary
Additional Distributions and any Yield Adjustments made in respect to such
Original Principal Amount of Debentures pursuant to Section 204.

         "Average Transaction Consideration" shall mean, with respect to a
holder of one Reference Share in a Reference Share Offer, (a) the aggregate
consideration actually paid or distributed in respect of all Reference Shares
accepted in such Reference Share Offer, divided by (b) the total number of
Reference Shares outstanding immediately prior to the expiration of the
Reference Share Offer and entitled to participate in such Reference Share Offer.

         "Business Day" shall mean any day that is not a Saturday, Sunday or
legal holiday, on which banking institutions or trust companies in The City of
New York are authorized or obligated by law or regulation to close.

         "Closing Price" shall mean, with respect to any security on any date of
determination, the closing sale price (or, if no closing sale price is reported,
the last reported sale price) of that security (regular way) on the New York
Stock Exchange on that date or, if the security is not listed for trading on the
New York Stock Exchange on that date, as reported in the composite transactions
for the principal United States national or regional securities exchange on
which the security is so listed, or if the security is not so listed on a United
States national or regional securities exchange, as reported by the Nasdaq
National Market or, if the security is not so reported, the last quoted bid
price for the security in the over-the-counter market as reported by the
National Quotation Bureau or a similar organization. In the event that no such
quotation is available for that day, the Board of Directors will be entitled to
determine the Closing Price on the basis of those quotations that it in good
faith considers appropriate, unless "Closing Price" is to be determined for
purposes of valuing securities to be distributed pursuant to a Reference Share
Distribution and in the opinion of the Board of Directors there is a substantial
likelihood that such securities will have an aggregate fair market value in
excess of $100,000,000, in which event the Closing Price will be determined by a
nationally recognized investment banking or appraisal firm appointed by the
Company for such purpose. With respect to options, warrants and other rights to
purchase a security, the Closing Price shall be the value of the underlying
security determined as aforesaid, minus the exercise price; and with respect to
securities

                                       1
<PAGE>   4

exchangeable for or convertible into a relevant security, the Closing Price
shall be the Closing Price of the exchangeable or convertible security
determined as aforesaid or, if it has no Closing Price, the fully converted
value based upon the Closing Price of the underlying security determined as
aforesaid. If an "ex-dividend" date for a security occurs during the period used
in determining the security's Current Market Value or Exchange Market Value, the
Closing Price of the security on any day prior to the "ex-dividend" date used in
such determination shall be reduced by the amount of the dividend. For this
purpose, the amount of a non-cash dividend will be equal to the amount of the
dividend, as of the record date therefor, as determined by a nationally
recognized investment banking firm retained by the Company for this purpose. To
the extent that trading (regular way) of, or quotations for, any security as to
which "Closing Price" is to be determined continues past 4:00 p.m., New York
City time, on the applicable securities exchange, the National Market System or
over-the-counter market, as the case may be, "Closing Price" shall be deemed to
refer to the price or bid at the time that is then customary for determining the
trading day's index levels for stocks traded on such securities exchange, the
National Market System or over-the-counter market.

         "Common Equity Securities" shall mean any securities (i) that are
common stock or Tracking Stock or participate without limitation in earnings and
dividends in parity with such common stock or Tracking Stock and (ii) that are
Marketable Securities. For greater certainty, the term "Common Equity
Securities" does not mean warrants, options or other rights to purchase, or
securities exchangeable or convertible into, Common Equity Securities.

         "Company" shall mean the Person named as the "Company" in the first
paragraph of this instrument until a successor Person shall have become such
pursuant to the applicable provisions of the Indenture, and thereafter "Company"
shall mean such successor Person, and any other obligor upon the Debentures.

         "Current Market Value" shall mean, with respect to any Reference Share,
the average of the Closing Prices for such Reference Share over the 20 Trading
Day period immediately prior to (but not including) the fifth Trading Day
preceding the applicable Redemption Date (or, in the case of Section 204(b), the
Stated Maturity).

         "Debenture" shall mean $1,000 Original Principal Amount of the
Debentures.

         "Debentures" shall mean the Company's 3% Exchangeable Subordinated
Debentures due 2030.

         "Depository" shall have the meaning assigned to it in the Original
Indenture.

         "DTC" shall mean The Depository Trust Company.

         "Exchange Agent" shall mean any Person authorized by the Company to act
as Exchange Agent under the Indenture. The Company initially authorizes the
Trustee to act as Exchange Agent for the Debentures on its behalf. The Company
may at any time and from time to time authorize one or more Persons (including
the Company) to act as Exchange Agent in addition to or in place of the Trustee
with respect to the Debentures.

                                       2
<PAGE>   5

         "Exchange Date" shall mean, with respect to any Notice of Exchange, the
date on which the Notice of Exchange and all documents, instruments and payments
required to be tendered in connection with the related exchange have been
received by the Exchange Agent.

         "Exchange Market Value" shall mean, for each Reference Share
attributable to the Debentures at the date of determination, (a) in the case of
a Notice of Exchange delivered to the Exchange Agent prior to March 14, 2002,
the Closing Price for such Reference Share on the twentieth Trading Day
following the Exchange Date (unless more than $1,000,000 aggregate Original
Principal Amount of Debentures have been validly tendered for exchange on such
date, in which case Exchange Market Value shall mean the average of the Closing
Prices for such Reference Share over the five Trading Day period ending on the
twentieth Trading Day immediately following the Exchange Date); and (b) in the
case of a Notice of Exchange delivered to the Exchange Agent on or after March
14, 2002, the Closing Price for such Reference Share on the Trading Day
following the Exchange Date (unless more than $1,000,000 aggregate Original
Principal Amount of Debentures have been validly tendered for exchange on such
date, in which case the Exchange Market Value shall mean the average of the
Closing Prices for such Reference Share over the five Trading Day period
immediately following the Exchange Date). The aggregate Exchange Market Value of
the Reference Shares attributable to any Debenture for which a Notice of
Exchange is delivered to the Trustee shall equal the sum of the Exchange Market
Values of the Reference Shares attributable to such Debenture.

         "Extraordinary Additional Distribution" shall mean any Additional
Distribution other than a Regular Additional Distribution, whether of cash or
property; provided that in the event of a Reference Share Offer, the amount of
the Extraordinary Additional Distribution on each Debenture in respect of such
Reference Share Offer shall equal the portion of the Average Transaction
Consideration deemed to be received on the Reference Shares of the class or
series subject to the Reference Share Offer attributable to such Debenture
(immediately prior to giving effect to the Reference Share Proportionate
Reduction relating to that Reference Share Offer) other than the portion of the
Average Transaction Consideration that consists of Common Equity Securities,
which themselves become part of the Reference Shares as a result of the
Reference Share Offer Adjustment.

         "Extraordinary Distribution" shall mean any Reference Share
Distribution other than a Regular Cash Dividend.

         "Final Period Distribution" shall mean, for each Debenture, (a) all
Regular Cash Dividends on any Reference Shares attributable to such Debenture
for which the ex-dividend date has occurred but which, at the date of
determination, have not been received by the holders of such Reference Shares
and (b) all Extraordinary Distributions on any Reference Shares attributable to
such Debenture for which the ex-dividend date has occurred but which, at the
date of determination, have not been received by the holders of such Reference
Shares, but only to the extent that the value of such Extraordinary
Distributions (determined in accordance with Section 206(d) or (e)) exceeds the
Adjusted Principal Amount of such Debenture.

         "Interest Payment Date" shall have the meaning assigned to it in
Section 205.

                                       3

<PAGE>   6

         "Maturity Repayment Amount" shall have the meaning assigned to it in
the form of Debenture attached hereto as Exhibit A.

         "Notice of Exchange" shall mean the notice of exchange given to the
Exchange Agent by a Holder of its request to exchange Debentures pursuant to
Section 209(c).

         "Optional Redemption" shall mean any redemption of the Debentures, in
whole or in part, at the option of the Company pursuant to Section 208(a).

         "Original Principal Amount" shall mean the face value of $1,000
principal amount per Debenture.

         "Reference Company" shall mean Sprint Corporation, for so long as any
Reference Shares are Sprint PCS Stock, and any other issuer of a Reference
Share.

         "Reference Share" shall initially mean one share of Sprint PCS Stock;
and after the date hereof shall mean and include each share or fraction of a
share of Common Equity Securities received by a holder of a Reference Share in
respect of that Reference Share, and, to the extent the Reference Share remains
outstanding after any of the following events but without duplication, including
the Reference Share outstanding immediately prior thereto, in each case directly
or as the result of successive applications of this paragraph upon any of the
following events: (i) a distribution on or in respect of a Reference Share, made
in Reference Shares; (ii) the combination of a Reference Share into a smaller
number of shares or other units; (iii) the subdivision of outstanding shares or
other units of a Reference Share; (iv) the conversion or reclassification of a
Reference Share by issuance or exchange of other Common Equity Securities; (v)
any Common Equity Securities issued for a Reference Share in any consolidation
or merger of a Reference Company, or any surviving entity or subsequent
surviving entity of a Reference Company (referred to herein as a "Reference
Company Successor"), with or into another entity (other than any Common Equity
Securities issued in connection with (A) a Reference Share Offer or (B) a merger
or consolidation in which (x) the Reference Company is the continuing
corporation and in which the Reference Shares outstanding immediately prior to
the merger or consolidation issued by such Reference Company are not exchanged
for cash, securities or other property of the Reference Company or another
corporation or (y) an election is given as to the consideration to be received
by a holder of such Reference Shares); (vi) any Common Equity Securities issued
in exchange for a Reference Share in any statutory exchange of securities of a
Reference Company or any Reference Company Successor with another corporation
(other than any Common Equity Securities issued in connection with (A) a
Reference Share Offer or (B) a statutory exchange of securities in which (x) the
Reference Company is the continuing corporation and in which the Reference
Shares outstanding immediately prior to the statutory exchange issued by such
Reference Company are not exchanged for cash, securities or other property of
the Reference Company or another corporation or (y) an election is given as to
the consideration to be received by a holder of such Reference Shares); (vii)
any Common Equity Securities issued with respect to a Reference Share in
connection with any liquidation, dissolution or winding up of the Reference
Company or any Reference Company Successor; and (viii) any Common Equity
Securities received in exchange for a Reference Share as part of the Average
Transaction Consideration deemed received in any Reference Share Offer. For
purposes of this definition, (I) a conversion or redemption by Sprint

                                       4
<PAGE>   7

Corporation of all shares of Sprint PCS Stock pursuant to Article Sixth, Section
7.1 of its Articles of Incorporation shall be deemed a consolidation or merger;
and (II) a redemption by Sprint Corporation pursuant to Article Sixth, Section
7.2 of its Articles of Incorporation of all of the outstanding shares of Sprint
PCS Stock in exchange for common stock of one or more wholly-owned subsidiaries
that collectively hold all of the assets and liabilities attributed to its PCS
Group shall be deemed a statutory exchange of shares of Sprint PCS Stock for
shares of common stock of the relevant subsidiary or subsidiaries; provided,
however, that if there is an election given to holders of Sprint PCS Stock in
connection with any such conversion or redemption, the transaction shall be
deemed a Reference Share Offer.

         "Reference Share Distribution" shall mean any dividend or distribution
on or in respect of a Reference Share, including payments and distributions in
connection with (i) the consolidation or merger of a Reference Company or
Reference Company Successor, a statutory exchange of securities of a Reference
Company or Reference Company Successor or a liquidation or dissolution of a
Reference Company or Reference Company Successor or (ii) any Reference Share
Offer, but shall not include any dividend or distribution made in the form of
additional Reference Shares.

         "Reference Shares Eligibility Date" shall mean March 14, 2002.

         "Reference Share Offer" shall mean any tender offer or exchange offer
made for 30% or more of the outstanding shares of a class or series of Reference
Shares of a Reference Company or any consolidation, merger or statutory exchange
involving a class or series of Reference Shares of a Reference Company in which
an election is given to holders of such Reference Shares as to the consideration
to be received in the transaction. A "Reference Share Offer" shall include a
conversion or redemption by Sprint Corporation of less than all shares of Sprint
PCS Stock pursuant to Article Sixth, Section 7.1 of its Articles of
Incorporation or any conversion or redemption by Sprint Corporation of all
shares of Sprint PCS Stock pursuant to Article Sixth, Section 7.1 or Section 7.2
of its Articles of Incorporation in which a holder of Sprint PCS Stock is given
an election as to the consideration that he or she may receive.

         "Reference Share Offer Adjustment" shall mean (a) an adjustment to the
Reference Shares attributable to each Debenture to include the portion of the
Average Transaction Consideration received in a Reference Share Offer that
consists of Reference Shares and (b) a reduction in the number of Reference
Shares attributable to each Debenture prior to such Reference Share Offer by the
Reference Share Proportionate Reduction.

         "Reference Share Proportionate Reduction" shall mean a proportionate
reduction in the number of Reference Shares of the class or series of Reference
Shares which are the subject of the applicable Reference Share Offer and
attributable to each Debenture, calculated in accordance with the following
formula:

                                [OBJECT OMITTED]
where:

                                       5
<PAGE>   8

         R        = the fraction by which the number of Reference Shares of the
                  class or series of Reference Shares subject to the Reference
                  Share Offer and attributable to each Debenture will be
                  reduced;

         X        = the aggregate number of Reference Shares of the class or
                  series of Reference Shares subject to the Reference Share
                  Offer accepted in the Reference Share Offer; and

         N        = the aggregate number of Reference Shares of the class or
                  series of Reference Shares subject to the Reference Share
                  Offer outstanding immediately prior to the expiration of the
                  Reference Share Offer.

         "Regular Additional Distribution" shall mean any Additional
Distribution as a result of a Reference Share Distribution that consists of a
Regular Cash Dividend.

         "Regular Cash Dividend" shall mean any cash dividend declared by a
Reference Company on its Reference Shares in accordance with the Reference
Company's publicly announced regular common equity dividend policy.

         "Securities Exchange Act" shall mean the United States Securities
Exchange Act of 1934, as amended.

         "Senior Indebtedness" means the principal of, premium, if any, and
interest on, and any other payment due pursuant to, any of the following,
whether outstanding on the date the Debentures are issued or incurred by the
Company in the future:

(a)               all of the Company's indebtedness for money borrowed,
                  including any indebtedness secured by a mortgage or other lien
                  which is (1) given to secure all or part of the purchase price
                  of property subject to the mortgage or lien, whether given to
                  the vendor of that property or to another lender, or (2)
                  existing on property at the time the Company acquires it;

(b)               all of the Company's indebtedness evidenced by notes,
                  debentures, bonds or other securities sold by the Company for
                  money;

(c)               all of the Company's lease obligations which are capitalized
                  on the Company's books in accordance with generally accepted
                  accounting principles;

(d)               all indebtedness of others of the kinds described in (a) and
                  (b) above and all lease obligations of others of the kind
                  described in (c) above that the Company, in any manner, assume
                  or guarantee or that the Company in effect guarantee through
                  an agreement to purchase, whether that agreement is contingent
                  or otherwise; and

(e)               all renewals, extensions or refundings of indebtedness of the
                  kinds described in (a), (b) or (d) above and all renewals or
                  extensions of leases of the kinds described in (c) or (d)
                  above;

                                       6
<PAGE>   9

unless, in the case of any particular indebtedness, lease, renewal, extension or
refunding, the instrument or lease creating or evidencing it or the assumption
or guarantee relating to it expressly provides that such indebtedness, lease,
renewal, extension or refunding is not superior in right of payment to the
Debentures. The Company's senior Debt Securities issued under the Original
Indenture constitute Senior Indebtedness for purposes of the Debentures.

         Senior indebtedness does not include:

(a)               any indebtedness of the Company or of any Restricted
                  Subsidiary to the Company or another Restricted Subsidiary;

(b)               any guarantee by the Company or any Restricted Subsidiary of
                  indebtedness of the Company or another Restricted Subsidiary;

(c)               any accounts payable or other liability to trade creditors
                  arising in the ordinary course of business (including
                  guarantees thereof or instruments evidencing such
                  liabilities);

(d)               letters of credit, performance bonds and similar obligations
                  issued in favor of governmental or franchising authorities as
                  a term of a cable television franchise or other governmental
                  franchise, license, permit or authorization held by the
                  Company or any of its Subsidiaries; and

(e)               the Company's Exchangeable Subordinated Debentures due 2029
                  (the "PRIZES"), which rank pari passu with the Debentures.

         "Sprint Corporation" shall mean Sprint Corporation, a Kansas
corporation.

         "Sprint PCS Stock" shall mean the Sprint Corporation PCS common
stock-Series 1, par value $1.00 per share.

         "Tracking Stock" shall mean an equity security which tracks the
performance of one or more subsidiaries or a distinct line of business of the
issuer of such equity security.

         "Trading Day" shall mean (i) where the Closing Price of a security is
to be determined, a day on which the security (a) is not suspended from trading
or quotation at the close of business on the national or regional securities
exchange, the National Market System or over-the-counter market that is the
primary market for the trading or quotation of that security and (b) has traded
or been quoted at least once on the national or regional securities exchange,
the National Market System or over-the-counter market that is the primary market
for the trading or quotation of that security, and (ii) for any other purpose
under this Second Supplemental Indenture, any day on which the Nasdaq National
Market and the New York Stock Exchange are open for the transaction of business.

          "Yield Adjustment" shall mean any adjustment required to be made to
the Adjusted Principal Amount on any Interest Payment Date following any
Extraordinary Additional Distribution (except for the Interest Payment Date
immediately following such Extraordinary Additional Distribution) so that the
interest payment on such Interest Payment Date does not

                                       7
<PAGE>   10

represent an annualized yield in excess of 3% on the Adjusted Principal Amount
of the Debentures during the semi-annual period immediately preceding such
Interest Payment Date.

Section 102.      Section References.

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

         Section 103.  Conflict with Original Indenture.

         To the extent that any of the terms set forth in this Second
Supplemental Indenture or the certificates representing the Debentures shall
conflict with any of the terms of the Original Indenture, the terms of this
Second Supplemental Indenture and the certificates representing the Debentures
shall be controlling with respect to the Debentures.

Article Two

                                         TITLE AND TERMS OF THE SECURITIES

Section 201.      Title of the Securities.

         The title of the Securities of the series established hereby is the "3%
 Exchangeable Subordinated Debentures due 2030."

Section 202.      Amount.

         The aggregate Original Principal Amount of the Debentures which may be
authenticated and delivered under the Indenture is initially limited to
$335,366,000, except for Debentures authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Debentures
pursuant to Section 2.07, 2.08, 2.09 or 9.04 of the Original Indenture;
provided, however, that the series of Securities established hereby may be
reopened, without the consent of the Holders of Outstanding Debentures, for
issuance of additional Debentures.

Section 203.      Registered Securities.

         The certificates for the Debentures shall be Registered Securities and
shall be in substantially the form attached hereto as Exhibit A, and shall bear
the legends as are inscribed thereon.

Section 204.      Stated Maturity; Changes to Original Principal Amount or
Adjusted Principal Amount.

(a)      The Stated Maturity of the principal of the Debentures shall be March
14, 2030.

(b)      Not less than 30 Business Days prior to the Stated Maturity of the
principal of the Debentures, the Company shall issue a press release and provide
it to DTC for dissemination through the DTC broadcast facility, as to whether or
not the Company will deliver, or cause to be delivered, Reference Shares in
exchange for any Debentures submitted for exchange, in

                                       8
<PAGE>   11

accordance with Section 209, from the date of such notice through 5:00 p.m., New
York City time, on the Trading Day next preceding such Stated Maturity. If
Reference Shares are to be delivered in connection with any such exchange,
Debentures validly exchanged during that period in accordance with Section 209
will be exchanged for the Reference Shares attributable to such Debentures, and
the Company shall pay at Stated Maturity to Holders that do not exchange their
Debentures an amount, in cash, determined in the same manner as the Redemption
Price is determined in Section 208(a)(ii) (substituting the term "Stated
Maturity" for "Redemption Date" therein), in full payment for such Debentures.
If Reference Shares are not to be delivered in connection with any such
exchange, the exchange right set forth in Section 209 will terminate as of the
30th Business Day prior to the Stated Maturity of the principal of the
Debentures and the Company shall pay at Stated Maturity to Holders of Debentures
an amount, in cash, determined in the same manner as the Redemption Price is
determined in Section 208(a)(i)(B) (substituting the term "Stated Maturity" for
"Redemption Date" therein), in full payment for such Debentures. Any notice by
the Company as to whether or not it will deliver Reference Shares in exchange
for Debentures pursuant to this Section 204(b) shall be irrevocable.

(c)      The principal amount of each Debenture shall initially equal the
Original Principal Amount. Thereafter, the principal amount of each Debenture,
as of any date of determination, shall equal the Adjusted Principal Amount. In
calculating the Adjusted Principal Amount, (i) the value of any Extraordinary
Additional Distribution shall be subtracted as of the date it is distributed to
holders of the Debentures, and (ii) the amount of each Yield Adjustment shall be
subtracted on the Interest Payment Date to which such Yield Adjustment relates.
In no event will the Adjusted Principal Amount be less than zero.

(d)      At least five Business Days prior to the Stated Maturity of the
principal of Debentures, the Company shall deliver an Officers' Certificate to
the Trustee which: (i) sets forth the amount to be paid in accordance with
Section 204(b) at such Stated Maturity for each Debenture and for all Debentures
then Outstanding, (ii) sets forth a reasonably detailed calculation of such
amounts, and (iii) directs the Trustee to adjust its records accordingly and to
request the Depository to adjust its records accordingly. At or prior to 10:00
a.m., New York City time, on the date of Stated Maturity of the principal of the
Debentures, the Company shall deposit with the Trustee or with a Paying Agent
(or, if the Company is acting as its own Paying Agent, segregate and hold in
trust as provided in Section 3.03 of the Original Indenture) an amount in cash
sufficient to pay, in accordance with Section 204(b), the amount due on all
Debentures that are Outstanding at 5:00 p.m., New York City time, on the date of
such Stated Maturity.

(e)      In the event of an acceleration of maturity of the Debentures pursuant
to Section 6.01 of the Original Indenture (as modified by Section 217 hereof),
there shall become immediately due and payable an amount equal to the sum of (1)
the greater of (a) the Adjusted Principal Amount of the Debentures then
Outstanding and (b) the Current Market Value of the Reference Shares
attributable to the Debentures, (2) any accrued and unpaid interest on the
Debentures and (3) subject to Section 211, any Final Period Distribution on the
Debentures, determined as if (i) in the case of an Event of Default specified in
clause (g) or (h) of Section 6.01 of the Original Indenture, the date of such
Event of Default were the Stated Maturity of the principal of the Debentures and
(ii) in the case of any other Event of Default, the date of declaration of
acceleration were the Stated Maturity of the principal of the Debentures.

                                       9
<PAGE>   12

Section 205.      Interest.

(a)      The Debentures shall bear interest from March 14, 2000 or from the most
recent Interest Payment Date to which interest has been paid or provided for,
payable semiannually on March 14 and September 14 of each year (each, an
"Interest Payment Date"), commencing September 14, 2000, to the Persons in whose
names the Debentures (or one or more Predecessor Securities) are registered at
the close of business on the March 1 or September 1 immediately preceding such
Interest Payment Date. Calculations of interest on each Debenture shall be based
on the Original Principal Amount, without regard to changes in the Adjusted
Principal Amount.

(b)      Interest on the Debentures will accrue at the rate of 3% per annum of
the Original Principal Amount, without regard to changes in the Adjusted
Principal Amount, until the principal thereof is paid or made available for
payment.

Section 206.      Additional Distributions.

(a)      The Company shall distribute, or cause to be distributed, as an
Additional Distribution to all Holders of Debentures, any Reference Share
Distribution received by holders of Reference Shares, or the cash value thereof,
in accordance with this Section 206.

(b)      In the case of any Regular Cash Dividend, the Company shall pay, to the
Holder of each Debenture, as a Regular Additional Distribution, the amount of
cash received by a holder of the number of Reference Shares attributable to such
Debenture in respect of such Regular Cash Dividend. Such payment shall be made
by the Company on the next Interest Payment Date to Holders of Debentures as of
5:00 p.m., New York City time, on the Regular Record Date for such Interest
Payment Date. (c) In the case of any Extraordinary Dividend, the Company shall
deliver, to the Holder of each Debenture, as an Extraordinary Additional
Distribution, all dividends and distributions, or the fair market value thereof
(determined in accordance with Section 206(d) or (e)), received by a holder of
the number of Reference Shares attributable to such Debenture in respect of such
Extraordinary Dividend. Any distribution pursuant to this subsection (c) shall
be made by the Company to Holders of Debentures as of a special record date
which shall be the 10th Business Day after the date of the payment of the
Extraordinary Distribution by the applicable Reference Company, and shall be
distributed to such Holders on the 10th Business Day following such special
record date.

(d)      If an Extraordinary Distribution consists of securities or units that
are Marketable Securities (other than securities which are, or become, Reference
Shares), such securities or units will be distributed by the Company to Holders
of the Debentures in accordance with Section 206(c); provided, that the Company
shall not distribute fractional securities or units. In lieu of fractional
securities or units, the Company shall pay the Holders of Debentures an amount
in cash equal to the Closing Price, as of the special record date, of the
security or unit to be distributed multiplied by such fractional interest. For
purposes of determining the existence of fractional interests, all Debentures
held by a Holder shall be considered together (no matter how many separate
certificates such Holder may have). In the event the Company is unable to
distribute any securities or units as part of an Extraordinary Additional
Distribution because any

                                       10

<PAGE>   13

necessary qualifications or registrations of such securities or units under
applicable state or federal securities laws cannot be obtained on a timely
basis, the Company may instead deliver, in lieu of such securities or units,
cash based on the average of the Closing Prices of such securities or units over
the five Trading Days ending on the Trading Day next preceding the distribution
by the Company of such Extraordinary Additional Distribution.

(e)      If an Extraordinary Distribution consists of cash, assets or property
other than securities or units that are Marketable Securities, the Company shall
pay to Holders of the Debentures an amount of cash equal to the fair market
value thereof; such fair market value to be determined as of the date such
Extraordinary Distribution is made or paid to holders of the applicable
Reference Shares. Such fair market value shall be equal to the amount determined
in good faith by the Board of Directors, unless the Board of Directors
determines in good faith that there is a substantial likelihood that the
aggregate fair market value will be in excess of $100,000,000, in which case
such fair market value shall be determined by a nationally recognized investment
banking or appraisal firm retained by the Company for this purpose. The fair
market value so determined shall be set forth in a Board Resolution or, in the
case of a determination by an investment banking or appraisal firm, an Officers'
Certificate.

(f)      At least five Business Days prior to the payment or delivery of an
Extraordinary Additional Distribution by the Company pursuant to Section 206(c),
the Company shall deliver to the Trustee a Board Resolution setting a special
record date for such Extraordinary Additional Distribution and an Officers'
Certificate setting forth: (i) the exact amount of Marketable Securities or cash
to be distributed on or with respect to the Reference Shares attributable to
each Debenture, and (ii) the total amount of Marketable Securities or cash to be
distributed on or with respect to the Reference Shares attributable to all
Debentures that are Outstanding as of such special record date. If any
distribution relates to any assets or other property that is not publicly
traded, then at least five Business Days prior to such distribution, the Company
shall deliver to the Trustee: (A) a Board Resolution establishing the fair
market value of the assets or other property, unless such fair market value is
determined by a nationally recognized investment banking or appraisal firm, in
which case the Company shall deliver to the Trustee the report of such firm and
(B) an Officers' Certificate setting forth (I) the exact amount of cash to be
distributed on or with respect to the Reference Shares attributable to each
Debenture and (II) the total amount of cash to be distributed on or with respect
to the Reference Shares attributable to all Debentures that are Outstanding as
of such special record date in respect of any assets or other property that is
not publicly traded. The Trustee is only responsible for distributing Marketable
Securities in the form of global book entry securities that are DTC eligible. At
or prior to 10:00 a.m., New York City time, on the date an Extraordinary
Additional Distribution is to be made pursuant to Section 206(c), the Company
shall (x) in the case of an Extraordinary Additional Distribution consisting of
cash, deposit with the Trustee or with a Paying Agent an amount of cash equal to
the Extraordinary Additional Distribution to be paid on such date and (y) in the
case of an Extraordinary Additional Distribution consisting of Marketable
Securities, transfer by book-entry to the account of the Trustee or a Paying
Agent at DTC (or any successor Depository) the amount of Marketable Securities
to be distributed in such Extraordinary Additional Distribution on such date.
The Company shall act as its own Paying Agent for any Marketable Securities to
be delivered other than through book-entry. The Company shall issue a press
release setting forth the amount and composition, per Debenture, of any
Extraordinary

                                       11

<PAGE>   14

Additional Distribution and the Adjusted Principal Amount thereof, and shall
deliver such press release to DTC for dissemination through the DTC broadcast
facility.

Section 207.      Registration, Transfer and Exchange.

         The principal of and interest on the Debentures shall be payable and
the Debentures may be surrendered or presented for payment, the Debentures may
be surrendered for registration of transfer or exchange, and notices and demands
to or upon the Company in respect of the Debentures and the Indenture may be
served, at the office or agency of the Company maintained for such purposes in
The City of New York, from time to time, and the Company hereby appoints the
Trustee, acting through its office or agency in The City of New York designated
from time to time for such purpose, as its agent for the foregoing purposes;
provided, however, that, at the option of the Company, payment of interest on
the Debentures may be made by check mailed to the address of the Persons
entitled thereto, as such addresses shall appear in the Security Register; and
provided, further, that (subject to Section 4.02 of the Original Indenture) the
Company may at any time remove the Trustee as its office or agency in The City
of New York designated for the foregoing purposes and may from time to time
designate one or more other offices or agencies for the foregoing purposes and
may from time to time rescind such designations.

Section 208.      Redemption of the Debentures.

(a)      Optional Redemption. The Debentures will be redeemable at the option of
the Company, in whole or in part at any time or from time to time after March
17, 2004, on at least 30 Business Days (but not more than 60 days) prior notice
to Holders of the Debentures. In the notice of redemption, the Company shall
specify its irrevocable election of one of the following options (each, a
"Redemption Price"):

(i)      to terminate Holders' right to exchange, in accordance with Section
         209, Debentures called for redemption (but not affecting the exchange
         rights of Holders of any Debentures not called for redemption), in
         which case (A) no further exchange of such Debentures called for
         redemption pursuant to Section 209 will be permitted on or after the
         30th Business Day preceding the Redemption Date and (B) on the
         Redemption Date, the Company shall pay Holders, for each Debenture to
         be redeemed, a Redemption Price, in cash, equal to the sum of (1) the
         greater of (a) the Adjusted Principal Amount of such Debenture as of
         the Redemption Date and (b) 100% of the Current Market Value of the
         Reference Shares attributable to such Debenture, (2) any accrued and
         unpaid interest on such Debenture to the Redemption Date and (3)
         subject to Section 211, any Final Period Distribution on such
         Debenture; or

(ii)     to exchange Debentures surrendered at the option of Holders in
         accordance with Section 209, for Reference Shares until 5:00 p.m., New
         York City time, on the Trading Day next preceding the Redemption Date,
         in which case on the Redemption Date the Company shall pay Holders who
         do not elect to exchange Debentures for Reference Shares in accordance
         with Section 209(c), for each Debenture to be redeemed, a Redemption
         Price, in cash, equal to the sum of (1) the Adjusted Principal Amount
         of such Debenture at the Redemption Date, (2) any accrued and unpaid

                                       12
<PAGE>   15

         interest on such Debenture to the Redemption Date and (3) subject to
         Section 211, any Final Period Distribution on such Debenture.

(b)      Notices. In case of any redemption, the Company shall deliver an
Officers' Certificate to the Trustee not less than five Business Days prior to
the Redemption Date which sets forth (i) the Redemption Price to be paid for
each Debenture called for redemption on such Redemption Date and (ii) the
aggregate amount payable for all Debentures called for redemption on such
Redemption Date.

(c)      Interest Accrual to Cease. Once notice of redemption has been given and
funds are irrevocably deposited with the Trustee, interest on the Debentures
will cease to accrue on and after the Redemption Date and all rights of the
Holders of the Debentures called for redemption will cease, except for the right
of Holders to receive the Redemption Price (but without interest on such
Redemption Price) and any right to receive payment pursuant to Section 211.

(d)      Payment Failure. In the event that the Company fails to pay any amount
due on redemption of the Debentures on a Redemption Date, interest on the
Debentures called for redemption shall continue to accrue at an annual rate of
3% of the Original Principal Amount thereof from the date originally set for
redemption to the actual date of payment, and such actual date of payment shall
be deemed to be the Redemption Date for purposes of calculating the amount to be
paid to the Holders of Debentures on redemption, except that the amount of the
Final Period Distribution shall be determined as of the date originally set for
redemption.

Section 209.      Exchange of the Debentures.

(a)      Each Debenture will be exchangeable at the option of the Holder at any
time (except as otherwise provided in subsection (f) below) for the Exchange
Market Value of the Reference Shares attributable to that Debenture. The number
of Reference Shares attributable to each Debenture initially shall be 16.28
shares of Sprint PCS Stock, subject to adjustment as a result of any Reference
Share Proportionate Reduction or any other adjustment contemplated by the
definition of "Reference Shares."

(b)      The Company shall pay 100% of the Exchange Market Value of the
Reference Shares attributable to each Debenture, only in cash, for all exchanges
made prior to the Reference Shares Eligibility Date. On and after the Reference
Shares Eligibility Date, the Company may, at its option, (i) pay 100% of the
Exchange Market Value of the Reference Shares attributable to each Debenture in
cash; (ii) deliver the Reference Shares attributable to such Debenture in
payment of such Exchange Market Value; or (iii) deliver a combination of
Reference Shares and cash. Such payment or delivery will be made as promptly as
practicable, but in any event within ten Trading Days after the date of
determination of the Exchange Market Value. The Company shall notify the
Exchange Agent of its election to pay cash or deliver Reference Shares, or a
combination of the foregoing, by no later than 9:30 a.m., New York City time, on
the Trading Day next following the applicable Exchange Date. The Exchange Agent
shall notify an exchanging Holder of the Company's election under this Section
209(b) prior to 10:00 a.m., New York City time, on the next Trading Day after
the Exchange Date.

                                       13

<PAGE>   16

(c)      To exchange a Debenture a Holder must (a) in the case of a Debenture
held through the Depository, surrender such Debenture for exchange through
book-entry transfer into the account of the Exchange Agent, transmit an agent's
message requesting such exchange and comply with such other procedures of the
Depository as may be applicable in the case of an exchange and (b) in the case
of a Debenture held in certificated form, (i) complete and manually sign the
Notice of Exchange attached to the Debenture (or complete and sign a facsimile
of the Notice of Exchange) and deliver such Notice of Exchange to the Exchange
Agent, (ii) surrender the Debenture to the Exchange Agent, (iii) furnish
appropriate endorsements and transfer documents, if required by the Exchange
Agent, the Company or the Trustee and (iv) pay any transfer or similar tax, if
required. An exchange shall be deemed to have been effected at 5:00 p.m., New
York City time, on the Exchange Date. The delivery of a Notice of Exchange or,
in the case of book-entry, an agent's message requesting exchange, shall be
irrevocable. A Holder may exchange a portion of its Debentures only if the
portion is $1,000 Original Principal Amount or an integral multiple thereof.
Following the Exchange Date for an exchange of Debentures, all rights of the
Holder with respect to such Debentures shall cease, except for the right of such
Holder to receive the consideration specified in Section 209(b) (but without
interest thereon).

(d)      As soon as practicable on each Trading Day following receipt by the
Exchange Agent of notification from DTC that DTC has received an agent's message
from a DTC participant electing to exercise its exchange option with respect to
its Debentures, and delivery of such Debentures into the Exchange Agent's DTC
participant account, or following receipt of a complete manually signed Notice
of Exchange and receipt of certificated Debentures from a Holder, the Exchange
Agent shall notify the Company of the principal amount of Debentures which has
been tendered. When the Exchange Market Value has been determined, the Company
shall deliver an Officers' Certificate to the Trustee setting forth the exact
amount to be paid or the amount of Reference Shares to be delivered to the
tendering Holder and shall deposit such amount with the Exchange Agent (except
that if the Company elects to deliver Reference Shares in certificated form, the
Company shall act as its own Paying Agent as to such shares). Upon receipt of
such payment or delivery from the Company, the Exchange Agent shall pay DTC as
soon as practicable or, in the cases of Debentures that are held in certificated
form, as directed by the tendering Holder. Where the Company acts as its own
Paying Agent with respect to certificated Reference Shares, it shall deliver
them (i) as directed by the relevant participants of the Depositary, as
identified by the Depositary, or (ii) to or at the direction of tendering
Holders of Debentures.

(e)      In the case of any exchange made during the period from (but excluding)
a Regular Record Date for any Interest Payment Date to (but excluding) such
Interest Payment Date, the Holder shall tender funds equal to the interest and
any Additional Distribution payable on such Interest Payment Date.

(f)      The right to exchange Debentures pursuant to this Section 209 shall
terminate at 5:00 p.m., New York City time, (i) in the case of Stated Maturity
of the principal amount of the Debentures, on the Trading Day immediately
preceding such Stated Maturity and (ii) in the case of an optional redemption,
on the Trading Day immediately preceding the Redemption Date. A Holder's right
to exchange Debentures under this Section 209 shall further be subject to
termination by the Company (i) in connection with the payment of the Debentures
at Stated

                                       14

<PAGE>   17

Maturity, during the period set forth in the penultimate sentence of Section
206(b) and (ii) in connection with optional redemption, during the period set
forth in clause (i) of Section 208(a), provided, that any such termination shall
only apply to Debentures that have been called for redemption.

(g)      If more than $1,000,000 aggregate Original Principal Amount of
Debentures are tendered for exchange on any given date, the Company shall give
notice of such event to the Trustee and the Trustee shall give notice thereof to
DTC for distribution through its broadcast facility.

Section 210.      Distributions of Reference Shares or Other Securities.

(a)      The Company will pay any and all documentary, stamp, transfer or
similar taxes that may be payable in respect of the transfer and delivery of
Reference Shares or in connection with an Extraordinary Additional Distribution
pursuant hereto; provided, however, that the Company shall not be required to
pay any such tax which may be payable in respect of any transfer involved in
delivery of such property to a name other than that in which the Debentures were
registered, and no such transfer or delivery shall be made unless and until the
Person requesting such transfer has paid to the Company the amount of any such
tax, or has established, to the satisfaction of the Company, that such tax has
been paid.

(b)      The Company hereby warrants that upon delivery of any Reference Shares
or any securities in connection with any Extraordinary Additional Distribution
pursuant to this Supplemental Indenture, the Holder of a Debenture shall receive
all rights held by the Company in the securities to be delivered, free and clear
of any and all liens, claims, charges and encumbrances, other than any liens,
claims, charges and encumbrances which may have been placed thereon by the prior
owner thereof prior to the time acquired by the Company. In addition, the
Company further warrants that any securities to be delivered hereunder shall be
free of any transfer restrictions under federal or state securities laws (other
than such as are attributable to any Holder's status as an affiliate of the
issuer of such securities).

Section 211.      Balance of Final Period Distribution Payment.

(a)      In the case of a Final Period Distribution within the meaning of clause
(b) of the definition of "Final Period Distribution," the Company shall pay such
Final Period Distribution to the Holders of Debentures that have been repaid in
accordance with the first sentence of Section 204(b) or redeemed in accordance
with Section 208(a)(ii) as of a special record date which shall be the 10th
Business Day after the date of the payment of the relevant Extraordinary
Distribution by the applicable Reference Company; and such payment shall be
distributed on the 10th Business Day following such special record date. The
Company shall give notice regarding such distribution to the Trustee in
accordance with the provisions of Section 206(f).

(b)      In the event that the applicable Reference Company fails to make the
Extraordinary Distribution referred to in subsection (a) above at the time or in
the amount expected, the Company shall pursue any claim it has against such
Reference Company, whether as a securityholder or otherwise, on behalf of the
Holders of Debentures. Reasonable costs of

                                       15
<PAGE>   18

such actions by the Company may be deducted from the amount of any Extraordinary
Distribution before any distribution is made to Holders of Debentures pursuant
to Section 211(a).

Section 212.      Denominations.

         The Debentures shall be issued in denominations of $1,000 and integral
multiples in excess thereof.

Section 213.      Applicability of Certain Original Indenture Provisions.

(a)      Sections 11.01, 11.02 and 11.03 of the Original Indenture, relating to
defeasance and covenant defeasance, shall not be applicable to the Debentures.

(b)      Sections 4.08 and 4.09 of the Original Indenture shall not be
applicable to the Debentures.

Section 214.      Security Registrar, Paying Agent and Exchange Agent.

         The Trustee shall be the initial Paying Agent, initial Exchange Agent
and initial transfer agent for the Debentures (subject to the Company's right
(subject to Section 4.02 of the Original Indenture) to remove the Trustee as
such Paying Agent, Exchange Agent and/or transfer agent and, from time to time,
to designate one or more co-registrars and one or more other Paying Agents,
Exchange Agents and transfer agents and to rescind from time to time any such
designations), and The City of New York is designated as a Place of Payment for
the Debentures.

Section 215.      Global Debentures.

(a)      The Debentures shall be issued in the form of one or more temporary or
global Debentures. The initial Depository for the global Debentures shall be
DTC, and the depositary arrangements shall be those employed by whoever shall be
the Depositary with respect to the Debentures from time to time.

(b)      The Debentures shall be issued in the form of permanent global
Debentures in definitive fully registered form without interest coupons,
substantially in the form of Exhibit A. Each global Debenture shall be deposited
on behalf of the purchasers of the Debentures represented thereby with the
custodian for the Depositary, and registered in the name of a nominee of the
Depositary, duly executed by the Company and authenticated by the Trustee as
provided in the Original Indenture. The aggregate principal amount of a
Debenture may from time to time be increased or decreased by adjustments made on
the records of the custodian for the Depositary or the Depositary or its
nominee, as the case may be.

(c)      The global Debentures will be exchangeable for certificated Debentures
of like tenor and terms and of differing authorized denominations aggregating a
like principal amount, only if (i) the Depository notifies the Company that it
is unwilling or unable to continue as Depository for the global Debentures (ii)
the Depository ceases to be a clearing agency under the Securities Exchange Act,
(iii) the Company in its sole discretion determines that the global Debentures
shall be exchangeable for certificated Debentures or (iv) there shall have
occurred and be continuing an Event of Default under the Indenture with respect
to the Debentures. Upon

                                       16

<PAGE>   19

such exchange, the certificated Debentures shall be registered in the names of
the beneficial owners of the global Debentures which they have replaced; such
names shall be provided to the Trustee by the relevant participants of the
Depository, as identified by the Depository.

Section 216.      Sinking Fund.

         The Debentures shall not be subject to any sinking fund or similar
provision and shall not be redeemable at the option of the holder thereof.

Section 217.      Amendments to Certain Sections of the Original Indenture.

(a)      The amendments to the Original Indenture contained in this Section 217
shall apply only to the series of Debentures established pursuant to this Second
Supplemental Indenture.

(b)      Clause (a) of Section 6.01 of the Original Indenture is hereby amended
by adding the words "or distributions" following the word "interest" on the
second line thereof.

(c)      A new clause (c) is hereby added to Section 6.01 of the Original
Indenture and supercedes and replaces clause (c) of the Original Indenture. New
clause (c) shall read as follows:

                           "(c)     failure of the Company to comply with its
                  obligations to deliver cash or Reference Shares or any
                  combination thereof in exchange for Debentures pursuant to
                  Section 209 of the Second Supplemental Indenture;"

(d)      The seventh line of the fourth paragraph of Section 6.01 of the
Original Indenture are hereby amended by adding the words "and distributions"
following the word "interest" in such line.

(e)      Section 9.02 of the Original Indenture is hereby further amended by
adding a new clause (x), to read as follows:

                           "(x)     reduce the amount of cash or Reference
                                    Shares deliverable upon exchange of the
                                    Debentures."

(f)      Unless the context otherwise requires, all references to payment of
principal in the Original Indenture shall include the payment of the Maturity
Repayment Amount, and all references to payment of interest shall include
Additional Distributions.

Section 218.               Ranking.

         The Debentures are, to the extent provided herein and in the Original
Indenture, subordinate and subject in right of payment to the prior payment in
full of all Senior Indebtedness. The Debenture shall rank pari passu with the
PRIZES.

                                       17

<PAGE>   20

                                  Article Three

                            MISCELLANEOUS PROVISIONS

         The Trustee makes no undertaking or representations in respect of, and
shall not be responsible in any manner whatsoever for and in respect of, the
validity or sufficiency of this Second Supplemental Indenture or the proper
authorization or the due execution hereof by the Company or for or in respect of
the recitals and statements contained herein, all of which recitals and
statements are made solely by the Company.

         Except as expressly amended hereby, the Original Indenture shall
continue in full force and effect in accordance with the provisions thereof and
the Original Indenture is in all respects hereby ratified and confirmed. This
Second Supplemental Indenture and all its provisions shall be deemed a part of
the Original Indenture in the manner and to the extent herein and therein
provided.

         This Second Supplemental Indenture shall be governed by, and construed
in accordance with, the laws of the State of New York, without regard to
conflicts of laws principles thereof.

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

                                       18

<PAGE>   21

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

                            COX COMMUNICATIONS, INC.

                                 By:  /s/ Dallas S. Clement
                                   --------------------------------------------
                               Name:  Dallas S. Clement
                              Title:  Vice President and Treasurer

                            THE BANK OF NEW YORK, as Trustee

                                 By:  /s/ Annette Kos
                                   --------------------------------------------
                               Name:  Annette Kos
                              Title:  Assistant Vice President

                                       19

<PAGE>   22

                                                                       EXHIBIT A

                                Form of Debenture

                                       A-1
<PAGE>   23

THE SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A
NOMINEE OF THE DEPOSITARY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR THE INDIVIDUAL DEBT SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY
NOT BE TRANSFERRED EXCEPT 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 OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO COX COMMUNICATIONS,
INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

No. R-1                                                             $275,000,000
CUSIP No. 224044 AW 7

                            Cox Communications, Inc.

                3% Exchangeable Subordinated Debentures due 2030

         Cox Communications, Inc., a Delaware corporation (hereinafter called
the "Company," which term includes any successor corporation under the Indenture
referred to below), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the amount provided in Section 204 of the Second
Supplemental Indenture referred to herein (such amount being referred to herein
as the Maturity Repayment Amount) on March 14, 2030, and to pay interest on the
Original Principal Amount of this Debenture from March 14, 2000, or from the
most recent date to which interest has been paid or provided for, semiannually
on March 14 and September 14 in each year (each, an "Interest Payment Date"),
commencing September 14, 2000, at the rate of 3% per annum, until the Maturity
Repayment Amount is paid or made available for payment. Interest on this
Debenture shall be calculated on the basis of a 360-day year consisting of
twelve 30-day months. The interest so payable and paid or provided for on any
Interest Payment Date will, as provided in such Indenture, be paid to the Person
in whose name this Debenture (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 March 1 or September 1 (whether or not a Business
Day), as the case may be, immediately preceding such Interest Payment Date. Any
such interest which is payable, but is not paid or provided for, on any Interest
Payment Date shall forthwith cease to be payable to the registered Holder hereof
on the relevant Regular Record Date by virtue of having been such Holder, and
may be paid to the Person in whose name this Debenture (or one or more

<PAGE>   24

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
Company, notice whereof shall be given to the Holders of Debentures not less
than 10 days prior to such Special Record Date, or may be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Debentures may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in such Indenture.

         Payment of the Maturity Repayment Amount and the interest on this
Debenture will be made at the office or agency of the Company maintained for
that purpose in The City 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; provided, however, that, at the option of the Company,
interest may be paid by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register; provided,
further, that payment to DTC or any successor Depository may be made by wire
transfer to the account designated by DTC or such successor Depository in
writing.

         This Debenture is one of a duly authorized issue of securities of the
Company (herein called the "Debentures") issued and to be issued in one or more
series under an Indenture dated as of June 27, 1995 (the "Original Indenture,"
and together with the Second Supplemental Indenture referred to below and all
other indentures supplemental thereto, the "Indenture") between the Company and
The Bank of New York, as Trustee (the "Trustee", which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Debentures, and of the terms upon which the
Debentures are, and are to be, authenticated and delivered. This Debenture is
one of the series designated on the face hereof, initially limited (subject to
exceptions provided in the Indenture) to the aggregate Original Principal Amount
specified in the Second Supplemental Indenture between the Company and the
Trustee, dated as of March 14, 2000, establishing the terms of the Debentures
pursuant to the Indenture (the "Second Supplemental Indenture").

         The Debentures are, to the extent provided herein, in the Indenture and
in the Second Supplemental Indenture, subordinate and subject in right of
payment to the prior payment in full of all Senior Indebtedness (as defined in
the Second Supplemental Indenture), and each Holder of this Debenture by
accepting the same, agrees to and shall be bound by the provisions hereof, of
the Second Supplemental Indenture and of Article XII of the Original Indenture.

         The Debentures are redeemable at the option of the Company, in whole or
in part at any time or from time to time on or after March 17, 2004, on the
terms set forth in Section 208(a) of the Second Supplemental Indenture.

         The Debentures are exchangeable at the option of the Holders thereof,
on the terms set forth in Section 209 of the Second Supplemental Indenture.

         If an Event of Default (as defined in the Indenture, including the
amendments thereto in the Second Supplemental Indenture) with respect to the
Debentures shall occur and be

<PAGE>   25

continuing, the principal of the Debentures may be declared due and payable in
the manner and with the effect provided in the Indenture.

         The Original 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 issued under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in aggregate
principal amount of the Securities at the time Outstanding of each series
affected thereby. The Original Indenture also contains provisions permitting the
Holders of specified percentages in aggregate principal amount of the Securities
of any series at the time Outstanding, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Debenture
shall be conclusive and binding upon such Holder and upon all future Holders of
this Debenture and of any Debentures issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Debenture or such Debentures.

         No reference herein to the Indenture and no provision of this Debenture
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the Maturity Repayment Amount and interest
on this Debenture, at the times, place and rate, and in the coin or currency,
herein and in the Indenture prescribed.

         The Original Indenture contains provisions for defeasance of (i) the
entire indebtedness of the Debentures and (ii) certain covenants and Events of
Default with respect to the Debentures, in each case upon compliance with
certain conditions set forth therein, which provisions shall not apply to the
Debentures. In addition, provisions for certain covenants specified in Sections
4.08 and 4.09 of the Original Indenture shall not be applicable to the
Debentures.

         As provided in the Indenture and subject to certain limitations set
forth therein and in this Debenture, the transfer of this Debenture may be
registered on the Security Register upon surrender of this Debenture for
registration of transfer at the office or agency of the Company maintained for
the purpose in any place where the Maturity Repayment Amount and interest on
this Debenture 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 by his attorney duly authorized
in writing, and thereupon one or more new Debentures of this series and of like
tenor, of authorized denominations and for the same aggregate Original Principal
Amount, will be issued to the designated transferee or transferees.

         The Debentures are issuable only in registered form without coupons in
the denominations specified in the Second Supplemental Indenture establishing
the terms of the Debentures, all as more fully provided in the Indenture. As
provided in the Indenture, and subject to certain limitations set forth in the
Indenture and in this Debenture, the Debentures are exchangeable for a like
aggregate Original Principal Amount of Debentures of this series in different
authorized denominations, as requested by the Holders surrendering the same.

<PAGE>   26

         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, other than
in certain cases provided in the Indenture.

         Prior to due presentment of this Debenture 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 Debenture is registered as the owner
hereof for all purposes, whether or not this Debenture be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

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

         All terms used in this Debenture which are defined in the Original
Indenture or the Second Supplemental Indenture shall have the meanings assigned
to them in the Original Indenture or the Second Supplemental Indenture, as
applicable.

         Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee under the Indenture by the manual signature of one of
its authorized signatories, this Debenture shall not be entitled to any benefits
under the Indenture or be valid or obligatory for any purpose.

<PAGE>   27

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

                                                   COX COMMUNICATIONS, INC.

                                               By:
                                                  -----------------------------
                                             Name:  Dallas S. Clement
                                            Title:  Vice President and Treasurer

                                               By:
                                                  -----------------------------
                                             Name:  Jimmy W. Hayes
                                            Title:  Executive Vice President

                                      TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Debentures of the series designated herein referred
to in the within-mentioned Indenture.

Dated: March 14, 2000                                     THE BANK OF NEW YORK,
                                                          as Trustee

                                                          By:
                                                            --------------------
                                                          Authorized Signatory

<PAGE>   28

                             CERTIFICATE OF TRANSFER

         To transfer or assign this Debenture, fill in the form below:

I or we transfer and assign this Debenture to

--------------------------------------------------------------------------------
                       (Insert assignee's tax I.D. number)

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
              (Print or Type assignee's name, address and zip code)

and irrevocably appoint ________________ agent to transfer this Debenture on the
books of the Company. The agent may substitute another to act for him.

Date:                                    Your signature:
     --------------------                               -----------------------

<PAGE>   29

                                   SCHEDULE A

                              SCHEDULE OF EXCHANGES

The following exchanges of Debentures represented by this Debenture have been
made:

<TABLE>
<CAPTION>
------------------------- ---------------------- -----------------------
Original Principal                               Change in Original
Amount of this                                   Principal Amount of
Debenture as of March     Date exchange          this Debenture due to
14, 2000                  Made                   Exchange
<S>                       <C>                    <C>

------------------------- ---------------------- -----------------------
------------------------- ---------------------- -----------------------
      $275,000,000
------------------------- ---------------------- -----------------------
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------------------------- ---------------------- -----------------------

---------------------- ======================
Original Principal
Amount of this
Debenture following
such exchange          Notation made by
---------------------- ======================
---------------------- ======================

---------------------- ======================
---------------------- ======================

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---------------------- ======================

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---------------------- ======================

---------------------- ======================
---------------------- ======================

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</TABLE>

<PAGE>   30

                                                                         ANNEX A
                               NOTICE OF EXCHANGE

The Bank of New York
101 Barclay Street
New York, NY 10286

                  Re:      Premium PHONES - 3% Exchangeable Subordinated
                           Debentures due 2030 (the "Debentures")

Gentlemen:

         The undersigned Holder of Debentures hereby gives notice of its
intention to exchange $______________ aggregate original principal amount of
Debentures. This notice, once delivered to the Exchange Agent, is irrevocable.

         If Reference Shares or any other securities are to be delivered as part
of this exchange, they should be delivered to:

         If cash is to be paid as part of this exchange, it should be sent to:

         Any communication to the Holder in connection with this exchange should
be directed to:

                        [Holder's address]

                                 Very truly yours,

                                [Name of Holder]

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

Date of Notice of Exchange:

                                       B-1

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