Document:

<PAGE>
                                                                  Exhibit 4.2

                                                                  EXECUTION COPY

                          THE ST. PAUL COMPANIES, INC.

                                       and

                              JPMORGAN CHASE BANK,
                           as Purchase Contract Agent

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

                           PURCHASE CONTRACT AGREEMENT

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

                            Dated as of July 31, 2002
<PAGE>
                                    ARTICLE I

            DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATIONS

<TABLE>
<S>                   <C>                                                                                       <C>
   Section 1.1        Definitions.................................................................................1
   Section 1.2        Compliance Certificates and Opinions.......................................................15
   Section 1.3        Form of Documents Delivered to Agent.......................................................16
   Section 1.4        Acts of Holders; Record Dates..............................................................16
   Section 1.5        Notices....................................................................................17
   Section 1.6        Notice to Holders; Waiver..................................................................18
   Section 1.7        Effect of Headings and Table of Contents...................................................18
   Section 1.8        Successors and Assigns.....................................................................18
   Section 1.9        Separability Clause........................................................................18
   Section 1.10       Benefits of Agreement......................................................................18
   Section 1.11       Governing Law..............................................................................19
   Section 1.12       Legal Holidays.............................................................................19
   Section 1.13       Counterparts...............................................................................20
   Section 1.14       Inspection of Agreement....................................................................20
   Section 1.15       Appointment of Financial Institution as Agent for the Company..............................20
   Section 1.16       No Waiver..................................................................................20

                                                     ARTICLE II

                                                 CERTIFICATE FORMS

   Section 2.1        Forms of Certificates Generally............................................................20
   Section 2.2        Form of Agent's Certificate of Authentication..............................................21

                                                    ARTICLE III

                                                   THE SECURITIES

   Section 3.1        Title and Terms; Denominations.............................................................21
   Section 3.2        Rights and Obligations Evidenced by the Certificates.......................................22
   Section 3.3        Execution, Authentication, Delivery and Dating.............................................22
   Section 3.4        Temporary Certificates.....................................................................23
   Section 3.5        Registration; Registration of Transfer and Exchange........................................23
   Section 3.6        Book-Entry Interests.......................................................................25
   Section 3.7        Notices to Holders.........................................................................25
   Section 3.8        Appointment of Successor Clearing Agency...................................................25
   Section 3.9        Definitive Certificates....................................................................25
   Section 3.10       Mutilated, Destroyed, Lost and Stolen Certificates.........................................26
   Section 3.11       Persons Deemed Owners......................................................................27
   Section 3.12       Cancellation...............................................................................27
   Section 3.13       Establishment of Treasury Units............................................................27
   Section 3.14       Reestablishment of Corporate Units.........................................................29
   Section 3.15       Transfer of Collateral upon Occurrence of Termination Event................................30
   Section 3.16       No Consent to Assumption...................................................................31
</TABLE>
                                       -i-
<PAGE>
<TABLE>
<S>                   <C>                                                                                       <C>
   Section 3.17       CUSIP Numbers..............................................................................31

                                                     ARTICLE IV

                       THE NOTES AND APPLICABLE OWNERSHIP INTEREST IN THE TREASURY PORTFOLIO

   Section 4.1        Interest and Other Payments; Rights to Payments Preserved; Rate Reset; Notice..............31
   Section 4.2        Notice and Voting..........................................................................33
   Section 4.3        Tax Event Redemption.......................................................................33
   Section 4.4        CUSIP Numbers..............................................................................33

                                                     ARTICLE V

                                               THE PURCHASE CONTRACTS

   Section 5.1        Purchase of Shares of Common Stock.........................................................34
   Section 5.2        Contract Adjustment Payments...............................................................35
   Section 5.3        Deferral of Payment Dates for Contract Adjustment Payments.................................40
   Section 5.4        Initial Remarketing and Secondary Remarketing..............................................41
   Section 5.5        Payment of Purchase Price, Cash Settlement, Final Remarketing..............................44
   Section 5.6        Issuance of Shares of Common Stock.........................................................47
   Section 5.7        Adjustment of Settlement Rate..............................................................48
   Section 5.8        Notice of Adjustments and Certain Other Events.............................................54
   Section 5.9        Termination Event; Notice..................................................................54
   Section 5.10       Early Settlement...........................................................................55
   Section 5.11       No Fractional Shares.......................................................................57
   Section 5.12       Charges and Taxes..........................................................................57

                                                     ARTICLE VI

                                                      REMEDIES

   Section 6.1        Unconditional Right of Holders to Purchase Common Stock....................................57
   Section 6.2        Restoration of Rights and Remedies.........................................................57
   Section 6.3        Rights and Remedies Cumulative.............................................................58
   Section 6.4        Delay or Omission Not Waiver...............................................................58
   Section 6.5        Undertaking for Costs......................................................................58
   Section 6.6        Waiver of Stay or Extension Laws...........................................................59

                                                    ARTICLE VII

                                                     THE AGENT

   Section 7.1        Certain Duties and Responsibilities........................................................59
   Section 7.2        Notice of Default..........................................................................60
   Section 7.3        Certain Rights of Agent....................................................................60
   Section 7.4        Not Responsible for Recitals or Issuance of Securities.....................................61
   Section 7.5        May Hold Securities........................................................................61
   Section 7.6        Money Held in Custody......................................................................61
</TABLE>

                                      -ii-
<PAGE>
<TABLE>
<S>                   <C>                                                                                       <C>
   Section 7.7        Compensation and Reimbursement.............................................................61
   Section 7.8        Corporate Agent Required; Eligibility......................................................62
   Section 7.9        Resignation and Removal; Appointment of Successor..........................................62
   Section 7.10       Acceptance of Appointment by Successor.....................................................63
   Section 7.11       Merger, Conversion, Consolidation or Succession to Business................................64
   Section 7.12       Preservation of Information; Communications to Holders.....................................64
   Section 7.13       No Obligations of Agent....................................................................64
   Section 7.14       Tax Compliance.............................................................................64

                                                    ARTICLE VIII

                                              SUPPLEMENTAL AGREEMENTS

   Section 8.1        Supplemental Agreements Without Consent of Holders.........................................65
   Section 8.2        Supplemental Agreements with Consent of Holders............................................65
   Section 8.3        Execution of Supplemental Agreements.......................................................66
   Section 8.4        Effect of Supplemental Agreements..........................................................67
   Section 8.5        Reference to Supplemental Agreements.......................................................67

                                                     ARTICLE IX

                                     CONSOLIDATION, MERGER, SALE OR CONVEYANCE

   Section 9.1        Covenant Not to Merge, Consolidate, Sell or Convey Property Except Under
                      Certain Conditions.........................................................................67
   Section 9.2        Rights and Duties of Successor Corporation.................................................67
   Section 9.3        Opinion of Counsel Given to Agent..........................................................68

                                                     ARTICLE X

                                                     COVENANTS

   Section 10.1       Performance Under Purchase Contracts.......................................................68
   Section 10.2       Maintenance of Office or Agency............................................................68
   Section 10.3       Company to Reserve Common Stock............................................................69
   Section 10.4       Covenants as to Common Stock, Dividends and Distributions..................................69
   Section 10.5       Tax Treatment..............................................................................69
</TABLE>

                                      -iii-
<PAGE>
                  PURCHASE CONTRACT AGREEMENT, dated as of July 31, 2002,
between The St. Paul Companies, Inc., a Minnesota corporation (the "Company"),
and JPMorgan Chase Bank, a New York banking corporation, acting as purchase
contract agent for the Holders of Securities (as defined herein) from time to
time (the "Agent").

                                    RECITALS

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

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

                                   WITNESSETH:

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

                                    ARTICLE I

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATIONS

                  Section 1.1       Definitions.

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

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

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

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

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

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

                           "Affiliate" has the same meaning as given to that
                  term in Rule 405 promulgated under the Securities Act or any
                  successor rule thereunder.
<PAGE>
                           "Agent" means the Person named as the "Agent" in the
                  first paragraph of this instrument until a successor Agent
                  shall have become such pursuant to the applicable provisions
                  of this Agreement, and thereafter "Agent" shall mean such
                  Person.

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

                           "Applicable Market Value" has the meaning specified
                  in Section 5.1 hereof.

                           "Applicable Ownership Interest" means, with respect
                  to a Corporate Unit and the zero-coupon U.S. Treasury
                  securities in the Treasury Portfolio, (i) a 1/20, or 5%,
                  undivided beneficial ownership interest in a $1,000 principal
                  amount of a principal or interest strip in a U.S. Treasury
                  security included in such Treasury Portfolio which matures on
                  or prior to August 15, 2005 and (ii) for the scheduled
                  interest payment date on the Notes that occurs on the Purchase
                  Contract Settlement Date, in the case of a Successful Initial
                  Remarketing or Successful Secondary Remarketing, or for each
                  scheduled interest payment date on the Notes that occurs after
                  the Tax Event Redemption Date and on or before the Purchase
                  Contract Settlement Date, in the case of a Tax Event
                  Redemption, a 0.065625% undivided beneficial ownership
                  interest in a $1,000 principal or interest amount of a
                  principal or interest strip in a U.S. Treasury security
                  included in the Treasury Portfolio that matures on or prior to
                  that interest payment date.

                           "Applicable Principal Amount" means the aggregate
                  principal amount of the Notes which are components of
                  Corporate Units on the Initial Remarketing Date or, upon a
                  Failed Initial Remarketing, the Secondary Remarketing Date.

                           "Authorized Newspaper" means a daily newspaper, in
                  the English language, customarily published on each day that
                  is a Business Day in The City of New York, whether or not
                  published on days that are Legal Holidays, and of general
                  circulation in The City of New York. The Authorized Newspaper
                  for the purposes of the Reset Announcement Date is currently
                  anticipated to be The Wall Street Journal.

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

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

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

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

                                      -2-
<PAGE>
                           "Book-Entry Interest" means a beneficial interest in
                  a Global Certificate, ownership and transfers of which shall
                  be maintained and made through book entries by a Clearing
                  Agency as described in Section 3.6 hereof.

                           "Business Day" means any day other than a Saturday, a
                  Sunday or any other day on which banking institutions in The
                  City of New York (in the State of New York) are permitted or
                  required by any applicable law to close.

                           "Cash Merger Date" has the meaning set forth in
                  Section 5.7(b)(2) hereof.

                           "Cash Merger Notice" has the meaning set forth in
                  Section 5.7(b)(2) hereof.

                           "Cash Settlement" has the meaning set forth in
                  Section 5.5(a)(i) hereof.

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

                           "Clearing Agency" means an organization registered as
                  a "Clearing Agency" pursuant to Section l7A of the Exchange
                  Act that is acting as a depositary for the Securities and in
                  whose name, or in the name of a nominee of that organization,
                  shall be registered a Global Certificate and which shall
                  undertake to effect book entry transfers and pledges of the
                  Securities.

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

                           "Closing Price" has the meaning specified in Section
                  5.1 hereof.

                           "Collateral" has the meaning specified in Section 2.1
                  of the Pledge Agreement.

                           "Collateral Account" has the meaning specified in
                  Article I of the Pledge Agreement.

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

                           "Collateral Substitution" has the meaning specified
                  in Section 3.13 hereof.

                           "Common Equity Securities" means shares of a class of
                  stock of the Company that is not entitled to priority over any
                  other class of stock of the Company in the payment of
                  dividends or with respect to rights upon the liquidation,
                  dissolution or winding up of the Company.

                           "Common Stock" means the common stock, no par value,
                  of the Company.

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

                                      -3-
<PAGE>
                           "Constituent Person" has the meaning specified in
                  Section 5.7(b).

                           "Contract Adjustment Payments" means the amount
                  payable by the Company in respect of each Purchase Contract
                  constituting a part of a Corporate Unit or a Treasury Unit
                  equal to 3.75% of the Stated Amount per year, in each case
                  computed on the basis of a 360-day year of twelve 30-day
                  months, plus any Deferred Contract Adjustment Payments accrued
                  pursuant to Section 5.2 or 5.3 hereof. Contract Adjustment
                  Payments will accrue from July 31, 2002 and will be payable
                  quarterly in arrears on any Payment Date, commencing on
                  November 16, 2002.

                           "Corporate Trust Office" means the principal
                  corporate trust office of the Agent at which, at any
                  particular time, its corporate trust business shall be
                  principally administered, which office at the date hereof is
                  located at 450 West 33rd Street, 15th Floor, New York, New
                  York 10001.

                           "Corporate Units" means the collective rights and
                  obligations of a Holder of a Corporate Unit Certificate in
                  respect of a Note or an appropriate Applicable Ownership
                  Interest in the Treasury Portfolio, as the case may be,
                  subject in each case to the Pledge thereof, and the related
                  Purchase Contract.

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

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

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

                           "Current Market Price" has the meaning specified in
                  Section 5.7(a)(8) hereof.

                           "Custodial Agent" has the meaning specified in
                  Article I of the Pledge Agreement, which as described therein
                  shall initially be the same Person as the Collateral Agent.

                           "Deferred Contract Adjustment Payments" has the
                  meaning specified in Section 5.3 hereof.

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

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

                           "Early Settlement" has the meaning specified in
                  Section 5.10(a) hereof.

                           "Early Settlement Amount" has the meaning specified
                  in Section 5.10(a) hereof.

                           "Early Settlement Date" has the meaning specified in
                  Section 5.10(a) hereof.

                                      -4-
<PAGE>
                           "Early Settlement Rate" has the meaning specified in
                  Section 5.10(c) hereof.

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

                           "Expiration Date" has the meaning specified in
                  Section 1.4 hereof.

                           "Expiration Time" has the meaning specified in
                  Section 5.7(a)(6) hereof.

                           "Failed Final Remarketing" has the meaning set forth
                  in Section 5.5(b).

                           "Failed Initial Remarketing" has the meaning
                  specified in Section 5.4(a) hereof.

                           "Final Remarketing" has the meaning set forth in
                  Section 5.5(b).

                           "Final Remarketing Date" has the meaning set forth in
                  Section 5.5(b).

                           "Failed Secondary Remarketing" has the meaning
                  specified in Section 5.4(b) hereof.

                           "Global Certificate" means a Certificate that
                  evidences all or part of the Securities and is registered in
                  the name of a Depositary or a nominee thereof.

                           "Global Note Certificate" means a certificate
                  evidencing the respective rights and obligations of Holders in
                  respect of the aggregate principal amount of Notes specified
                  on such certificate and which is registered in the name of a
                  Clearing Agency or a nominee thereof.

                           "Holder," when used with respect to a Security, means
                  the Person in whose name the Security evidenced by a Corporate
                  Unit Certificate and/or a Treasury Unit Certificate is
                  registered in the related Corporate Units Register and/or
                  Treasury Units Register, as the case may be.

                           "Indenture" means the Indenture, dated as of March
                  12, 2002, by and between the Company and the Indenture
                  Trustee, as it may be amended or supplemented from time to
                  time.

                           "Indenture Trustee" means JPMorgan Chase Bank, as
                  trustee under the Indenture, or any successor thereto.

                           "Initial Remarketing" has the meaning specified in
                  Section 5.4 hereof.

                           "Initial Remarketing Date" has the meaning specified
                  in Section 5.4 hereof.

                           "Issuer Order" or "Issuer Request" means a written
                  order or request signed in the name of the Company by its
                  Chairman of the Board, its Chief Executive Officer, its
                  President, an Executive Vice President, or a Senior Vice
                  President, and by its Chief Financial Officer, its Treasurer,
                  an Assistant Treasurer, its Secretary or an Assistant
                  Secretary, and delivered to the Agent.

                                      -5-
<PAGE>
                           "New York Office" shall have the meaning set forth in
                  Section 10.2 hereof.

                           "Notes" means the series of senior notes of the
                  Company designated the 5.25% senior notes due August 16, 2007,
                  to be issued under the Indenture as of the date hereof.

                           "NYSE" has the meaning specified in Section 5.1
                  hereof.

                           "Officer's Certificate" means a certificate of the
                  Company signed on its behalf by the Chairman of the Board, its
                  Chief Executive Officer, its President, an Executive Vice
                  President, a Senior Vice President, the Treasurer, any
                  Assistant Treasurer, the Secretary or any Assistant Secretary
                  of the Company and delivered to the Agent.

                           "Opinion of Counsel" means an opinion in writing
                  signed by legal counsel, who may be an employee of or counsel
                  to the Company or an Affiliate and who shall be reasonably
                  acceptable to the Agent.

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

                                    (i) If a Termination Event has occurred, (A)
                           Treasury Units for which the Stated Amount of
                           Treasury Securities has been theretofore deposited
                           with the Agent in trust for the Holders of such
                           Treasury Units and (B) Corporate Units for which the
                           Stated Amount of the related Notes or the appropriate
                           Applicable Ownership Interest in the Treasury
                           Portfolio, as the case may be, has been theretofore
                           deposited with the Agent in trust for the Holders of
                           such Corporate Units;

                                    (ii) Corporate Units or Treasury Units
                           evidenced by Certificates theretofore cancelled by
                           the Agent or delivered to the Agent for cancellation
                           or deemed cancelled pursuant to the provisions of
                           this Agreement; and

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

                  provided that in determining whether the Holders of the
                  requisite number of the Corporate Units or Treasury Units have
                  given any request, demand, authorization, direction, notice,
                  consent or waiver hereunder, Corporate Units or Treasury Units
                  owned by the Company or any Affiliate of the Company shall be
                  disregarded and deemed not to be outstanding, except that, in
                  determining whether the Agent shall be protected in relying
                  upon any such request, demand, authorization, direction,
                  notice, consent or waiver, only Corporate Units or Treasury
                  Units which a Responsible Officer of the Agent actually knows
                  to be so owned shall be so disregarded. Corporate Units or
                  Treasury Units so owned which have been pledged in good faith
                  may be regarded as Outstanding

                                      -6-
<PAGE>
                  Securities if the pledgee establishes to the satisfaction of
                  the Agent the pledgee's right so to act with respect to such
                  Corporate Units or Treasury Units and that the pledgee is not
                  the Company or any Affiliate of the Company.

                           "Payment Date" means each February 16, May 16, August
                  16 and November 16, commencing November 16, 2002.

                           "Permitted Investments" has the meaning set forth in
                  Article I of the Pledge Agreement.

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

                           "Pledge" means the pledge under the Pledge Agreement
                  of the Notes or the appropriate Applicable Ownership Interest
                  in the Treasury Portfolio, as the case may be, and of the
                  Treasury Securities, in each case constituting a part of the
                  Securities.

                           "Pledge Agreement" means the Pledge Agreement, dated
                  as of July 31, 2002, by and among the Company, the Collateral
                  Agent and the Agent, on its own behalf and as attorney-in-fact
                  for the Holders from time to time of the Securities, as the
                  same may hereafter be amended in accordance with the terms
                  thereof.

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

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

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

                           "Primary Treasury Dealer" means a primary U.S.
                  government securities dealer in The City of New York.

                           "Proceeds" has the meaning set forth in Article I of
                  the Pledge Agreement.

                                      -7-
<PAGE>
                           "Purchase Contract", when used with respect to any
                  Security, means the contract forming a part of such Security
                  and obligating the Company to sell and the Holder of such
                  Security to purchase Common Stock on the terms and subject to
                  the conditions set forth in Article V hereof.

                           "Purchase Contract Settlement Date" means August 16,
                  2005.

                           "Purchase Contract Settlement Fund" has the meaning
                  specified in Section 5.6 hereof.

                           "Purchase Price" has the meaning specified in Section
                  5.1 hereof.

                           "Purchased Shares" has the meaning specified in
                  clause (6) of Section 5.7(a) hereof.

                           "Put Option" has the meaning set forth in Section
                  5.5(c) hereof.

                           "Put Option Settlement Date" has the meaning set
                  forth in Section 5.5(c) hereof.

                           "Quotation Agent" means (i) Merrill Lynch Government
                  Securities, Inc. and its respective successors or (ii) any
                  other primary U.S. government securities dealer in The City of
                  New York (in the State of New York) selected by the Company.

                           "Record Date" means:

                                    (i) for the distribution payable in respect
                           of the Notes on any Payment Date;

                                    (ii) for the distribution payable in respect
                           of the Applicable Ownership Interest in the Treasury
                           Portfolio on any Payment Date; and

                                    (iii) for the Contract Adjustment Payment
                           payable on any Payment Date,

                  in each case, the first day of the month in which the relevant
                  Payment Date occurs.

                           "Redemption Amount" means, for each Note, the product
                  of (i) the principal amount of such Note and (ii) a fraction
                  whose numerator is the applicable Treasury Portfolio Purchase
                  Price and whose denominator is the applicable Tax Event
                  Redemption Principal Amount.

                           "Register" means the Corporate Units Register and the
                  Treasury Units Register.

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

                           "Remarketing Agent" has the meaning specified in
                  Section 5.4 hereof.

                           "Remarketing Agreement" means the Remarketing
                  Agreement to be entered into by and among the Company, the
                  Remarketing Agent and the Agent.

                                      -8-
<PAGE>
                           "Remarketing Fee" has the meaning specified in
                  Section 5.4 hereof.

                           "Remarketing Per Note Price" means the Treasury
                  Portfolio Purchase Price divided by the number of Notes held
                  as components of Corporate Units and remarketed in the Initial
                  Remarketing.

                           "Reorganization Event" has the meaning specified in
                  Section 5.7(b) hereof.

                           "Reset Agent" means a nationally recognized
                  investment banking firm chosen by the Company to determine the
                  Reset Rate.

                           "Reset Announcement Date" means, in the case of the
                  Reset Rate to be determined on the Initial Remarketing Date,
                  the tenth Business Day immediately preceding May 16, 2005, in
                  the case of the Reset Rate to be determined on the Secondary
                  Remarketing Date, the tenth Business Day immediately preceding
                  July 1, 2005, and in the case of the Reset Rate to be
                  determined on the Final Remarketing Date, the tenth Business
                  Day immediately preceding the Purchase Contract Settlement
                  Date.

                           "Reset Rate" means the interest rate per year (to be
                  determined by the Reset Agent in accordance with this
                  Agreement), equal to the sum of (X) the Reset Spread and (Y)
                  the rate of interest (1) in the case of the Reset Rate to be
                  determined on the Initial Remarketing Date, on the Two and
                  One-Quarter Year Benchmark Treasury in effect on the Initial
                  Remarketing Date, (2) in the case of the Reset Rate to be
                  determined on the Secondary Remarketing Date, on the Two and
                  One-Eighth Year Benchmark Treasury in effect on the Secondary
                  Remarketing Date or (3) in the case of the Reset Rate to be
                  determined on the Final Remarketing Date, on the Two-Year
                  Benchmark Treasury in effect on the Final Remarketing Date;
                  provided that the Reset Rate shall not exceed the maximum rate
                  permitted by applicable law.

                           "Reset Spread" means in the case of the Reset Rate to
                  be determined on the Initial Remarketing Date, the Secondary
                  Remarketing Date or the Final Remarketing Date, a spread
                  amount to be determined by the Reset Agent on the applicable
                  Reset Announcement Date as the appropriate spread so that the
                  Reset Rate will be the interest rate that the Notes should
                  bear in order for the Applicable Principal Amount of Notes to
                  have an aggregate market value of 100.5% of the Treasury
                  Portfolio Purchase Price on the Initial Remarketing Date or
                  the Secondary Remarketing Date or of 100.5% of the aggregate
                  principal amount of the Notes in the case of the Final
                  Remarketing Date.

                           "Responsible Officer", when used with respect to the
                  Agent, means any officer of the Agent with primary
                  responsibility for the administration of this Agreement and
                  the Pledge Agreement.

                           "Secondary Remarketing" has the meaning specified in
                  Section 5.4(b) hereof.

                           "Secondary Remarketing Date" has the meaning
                  specified in Section 5.4(b) hereof.

                           "Securities Act" means the Securities Act of 1933 and
                  any statute successor thereto, in each case as amended from
                  time to time, and the rules and regulations promulgated
                  thereunder.

                                      -9-
<PAGE>
                           "Securities Intermediary" has the meaning specified
                  in Article I of the Pledge Agreement, which as described
                  therein shall initially be the same Person as the Collateral
                  Agent.

                           "Security" means a Corporate Unit or a Treasury Unit.

                           "Senior Indebtedness" means indebtedness of any kind
                  of the Company unless the instrument under which such
                  indebtedness is incurred expressly provides that it is on a
                  parity in right of payment with or subordinate in right of
                  payment to the Contract Adjustment Payments.

                           "Separate Notes" means Notes that are no longer a
                  component of Corporate Units.

                           "Separate Notes Purchase Price" means the amount in
                  cash equal to the product of the Remarketing Per Note Price
                  multiplied by the number of Separate Notes remarketed in the
                  Initial Remarketing or the Secondary Remarketing.

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

                           "Stated Amount" means $50.

                           "Subsidiary" means (i) a corporation, a majority of
                  whose capital stock with voting power, under ordinary
                  circumstances, to elect directors is, at the date of
                  determination, directly or indirectly owned by the Company, by
                  one or more Subsidiaries of the Company or by the Company and
                  one or more Subsidiaries of the Company, (ii) a partnership in
                  which the Company or a Subsidiary of the Company holds a
                  majority interest in the equity capital or profits of such
                  partnership, or (iii) any other Person (other than a
                  corporation) in which the Company, a Subsidiary of the Company
                  or the Company and one or more Subsidiaries of the Company,
                  directly or indirectly, at the date of determination, has (x)
                  at least a majority ownership interest or (y) the power to
                  elect or direct the election of a majority of the directors or
                  other governing body of such Person.

                           "Successful Final Remarketing" has the meaning
                  specified in Section 5.5(b) hereof.

                           "Successful Initial Remarketing" has the meaning
                  specified in Section 5.4(a) hereof.

                           "Successful Secondary Remarketing" has the meaning
                  specified in Section 5.4(b) hereof.

                           "Tax Event" means the receipt by the Company of an
                  opinion of a nationally recognized independent tax counsel
                  experienced in such matters, to the effect that, as a result
                  of (a) any amendment to, or change (including any announced
                  proposed change) in, the laws (or any regulations thereunder)
                  of the United States or any political subdivision or taxing
                  authority thereof or therein affecting taxation, (b) any
                  amendment to or change in an interpretation or application of
                  such laws or regulations by any legislative body, court,
                  governmental agency or regulatory authority or (c) any
                  interpretation or pronouncement that provides for a position
                  with respect to such laws or regulations that

                                      -10-
<PAGE>
                  differs from the generally accepted position on July 25, 2002,
                  which amendment, change or proposed change is effective or
                  which interpretation or pronouncement is announced on or after
                  July 25, 2002, there is more than an insubstantial risk that
                  interest or original issue discount on the Notes would not be
                  deductible, in whole or in part, by the Company for United
                  States federal income tax purposes.

                           "Tax Event Redemption" means, if a Tax Event shall
                  occur and be continuing, the redemption of the Notes, at the
                  option of the Company, in whole but not in part, on not less
                  than 30 days nor more than 60 days' written notice.

                           "Tax Event Redemption Date" means the date upon which
                  a Tax Event Redemption is to occur.

                           "Tax Event Redemption Principal Amount" means,
                  either:

                           (a) if the Tax Event Redemption Date occurs:

                                    (i) prior to May 16, 2005;

                                    (ii) prior to July 1, 2005 (in the event of
                           a Failed Initial Remarketing but a Successful
                           Secondary Remarketing); or

                                    (iii) prior to the Purchase Contract
                           Settlement Date (in the event of a Failed Secondary
                           Remarketing),

                  the aggregate principal amount of the Notes which are
                  components of Corporate Units on the Tax Event Redemption
                  Date; or

                           (b) if the Tax Event Redemption Date occurs:

                                    (i) on or after May 16, 2005 (in the event
                           of a Successful Initial Remarketing);

                                    (ii) on or after July 1, 2005 (in the event
                           of a Successful Secondary Remarketing); or

                                    (iii) on or after the Purchase Contract
                           Settlement Date,

                  the aggregate principal amount of the Notes outstanding on the
                  Tax Event Redemption Date.

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

                           "Termination Event" means the occurrence of any of
                  the following events: (i) at any time on or prior to the
                  Purchase Contract Settlement Date, a judgment, decree or court
                  order shall have been entered granting relief under the
                  Bankruptcy Code, adjudicating the Company to be insolvent, or
                  approving as properly filed a petition seeking reorganization
                  or liquidation of the Company under the Bankruptcy Code or any
                  other similar applicable federal or state law, and, unless
                  such judgment, decree or order shall have been entered within
                  60 days prior to the Purchase Contract Settlement Date,

                                      -11-
<PAGE>
                  such decree or order shall have continued undischarged and
                  unstayed for a period of 60 days; or (ii) at any time on or
                  prior to the Purchase Contract Settlement Date, a judgment,
                  decree or court order for the appointment of a receiver or
                  liquidator or trustee or assignee in bankruptcy or insolvency
                  of the Company or of its property, or for the winding up or
                  liquidation of its affairs, shall have been entered, and,
                  unless such judgment, decree or order shall have been entered
                  within 60 days prior to the Purchase Contract Settlement Date,
                  such judgment, decree or order shall have continued
                  undischarged and unstayed for a period of 60 days, or (iii) at
                  any time on or prior to the Purchase Contract Settlement Date,
                  the Company shall file a petition for relief under the
                  Bankruptcy Code, or shall consent to the filing of a
                  bankruptcy proceeding against it, or shall file a petition or
                  answer or consent seeking reorganization or liquidation under
                  the Bankruptcy Code or any other similar applicable federal or
                  state law, or shall consent to the filing of any such
                  petition, or shall consent to the appointment of a receiver or
                  liquidator or trustee or assignee in bankruptcy or insolvency
                  of it or of its property, or shall make an assignment for the
                  benefit of creditors, or shall admit in writing its inability
                  to pay its debts generally as they become due.

                           "Threshold Appreciation Price" has the meaning
                  specified in Section 5.1 hereof.

                           "TIA" means the Trust Indenture Act of 1939 and any
                  statute successor thereto, in each case as amended from time
                  to time, and the rules and regulations promulgated thereunder.

                           "Trading Day" has the meaning specified in Section
                  5.1 hereof.

                           "Treasury Portfolio" means:

                           (1) in connection with the Initial Remarketing or
                  Secondary Remarketing, a portfolio of zero-coupon U.S.
                  Treasury securities consisting of (x) principal or interest
                  strips of U.S. Treasury securities that mature on or prior to
                  August 15, 2005 in an aggregate amount equal to the Applicable
                  Principal Amount and (y) with respect to the scheduled
                  interest payment date on the Notes that occurs on the Purchase
                  Contract Settlement Date, principal or interest strips of U.S.
                  Treasury securities that mature on or prior to August 15, 2005
                  in an aggregate amount equal to the aggregate interest payment
                  that would be due on the Applicable Principal Amount of the
                  Notes on August 16, 2005 if the applicable Coupon Rate on the
                  Notes were not reset to the Reset Rate as described in Section
                  4.1 hereof; and

                           (2) in connection with a Tax Event Redemption,
                  either:

                           (a)      if the Tax Event Redemption Date occurs:

                                    (i) prior to May 16, 2005;

                                    (ii) prior to July 1, 2005 (in the event of
                           a Failed Initial Remarketing but a Successful
                           Secondary Remarketing); or

                                    (iii) prior to the Purchase Contract
                           Settlement Date (in the event of a Failed Secondary
                           Remarketing),

                                      -12-
<PAGE>
                  a portfolio of zero-coupon U.S. Treasury securities consisting
                  of (x) principal or interest strips of U.S. Treasury
                  securities which mature on or prior to August 15, 2005 in an
                  aggregate amount equal to the applicable Tax Event Redemption
                  Principal Amount and (y) with respect to each scheduled
                  interest payment date on the Notes that occurs after the Tax
                  Event Redemption Date and on or before the Purchase Contract
                  Settlement Date, principal or interest strips of U.S. Treasury
                  securities that mature on or prior to such date in an
                  aggregate amount equal to the aggregate interest payment that
                  would be due on the applicable Tax Event Redemption Principal
                  Amount of the Notes on such date; or

                           (b)      if the Tax Event Redemption Date occurs:

                                    (i) on or after May 16, 2005 (in the event
                           of a Successful Initial Remarketing);

                                    (ii) on or after July 1, 2005 (in the event
                           of a Successful Secondary Remarketing); or

                                    (iii) on or after the Purchase Contract
                           Settlement Date,

                  a portfolio of zero-coupon U.S. Treasury securities consisting
                  of (x) principal or interest strips of U.S. Treasury
                  securities which mature on or prior to August 15, 2007 in an
                  aggregate amount equal to the applicable Tax Event Redemption
                  Principal Amount and (y) with respect to each scheduled
                  interest payment date on the Notes that occurs after the Tax
                  Event Redemption Date, principal or interest strips of such
                  U.S. Treasury Securities that mature on or prior to such date
                  in an aggregate amount equal to the aggregate interest payment
                  that would be due on the applicable Tax Event Redemption
                  Principal Amount of the Notes on such date.

                           "Treasury Portfolio Purchase Price" means:

                           (a) in the case of a Tax Event Redemption, the lowest
                  aggregate price quoted by the Primary Treasury Dealer to the
                  Quotation Agent on the third Business Day immediately
                  preceding the Tax Event Redemption Date for the purchase of
                  the applicable Treasury Portfolio for settlement on the Tax
                  Event Redemption Date; or

                           (b) in the case of the Initial Remarketing, the
                  lowest aggregate price quoted by the Primary Treasury Dealer
                  to the Quotation Agent on the Initial Remarketing Date for the
                  purchase of the applicable Treasury Portfolio for settlement
                  on May 16, 2005; or

                           (c) in the case of the Secondary Remarketing, the
                  lowest aggregate price quoted by the Primary Treasury Dealer
                  to the Quotation Agent on the Secondary Remarketing Date for
                  the purchase of the applicable Treasury Portfolio for
                  settlement on July 1, 2005.

                           "Treasury Security" means zero-coupon U.S. Treasury
                  securities (CUSIP Number 912803AG8), which are the principal
                  strip of the U.S. Treasury securities that are scheduled to
                  mature on August 15, 2005.

                                      -13-
<PAGE>
                           "Treasury Units" means the collective rights and
                  obligations of a Holder of a Treasury Unit Certificate in
                  respect of the Treasury Securities, subject to the Pledge
                  thereof, and the related Purchase Contract.

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

                           "Treasury Units Register" and "Treasury Units
                  Registrar" have the respective meanings specified in Section
                  3.5 hereof.

                           "Two-Year Benchmark Treasury" means direct
                  obligations of the United States (which may be obligations
                  traded on a when-issued basis only) having a maturity
                  comparable to the remaining term to maturity of the Notes, as
                  agreed upon by the Company and the Reset Agent. The rate for
                  the Two-Year Benchmark Treasury will be the bid side rate
                  displayed at 10:00 A.M., New York City time, on the third
                  Business Day immediately preceding the Purchase Contract
                  Settlement Date in the Telerate system (or if the Telerate
                  system is (a) no longer available on the Final Remarketing
                  Date or (b) in the opinion of the Reset Agent (after
                  consultation with the Company) no longer an appropriate system
                  from which to obtain such rate, such other nationally
                  recognized quotation system as, in the opinion of the Reset
                  Agent (after consultation with the Company), is appropriate).
                  If such rate is not so displayed, the rate for the Two-Year
                  Benchmark Treasury shall be, as calculated by the Reset Agent,
                  the yield to maturity for the Two-Year Benchmark Treasury,
                  expressed as a bond equivalent on the basis of a year of 365
                  or 366 days, as applicable, and applied on a daily basis, and
                  computed by taking the arithmetic mean of the secondary market
                  bid rates, as of 10:30 A.M., New York City time, on the Final
                  Remarketing Date of three leading United States government
                  securities dealers selected by the Reset Agent after
                  consultation with the Company (which may include the Reset
                  Agent or an Affiliate thereof).

                           "Two and One-Eighth Year Benchmark Treasury" means
                  direct obligations of the United States (which may be
                  obligations traded on a when-issued basis only) having a
                  maturity comparable to the remaining term to maturity of the
                  Notes, as agreed upon by the Company and the Reset Agent. The
                  rate for the Two and One-Eighth Year Benchmark Treasury will
                  be the bid side rate displayed at 10:00 A.M., New York City
                  time, on the Secondary Remarketing Date in the Telerate system
                  (or if the Telerate system is (a) no longer available on the
                  Secondary Remarketing Date or (b) in the opinion of the Reset
                  Agent (after consultation with the Company), no longer an
                  appropriate system from which to obtain such rate, such other
                  nationally recognized quotation system as, in the opinion of
                  the Reset Agent (after consultation with the Company), is
                  appropriate). If such rate is not so displayed, the rate for
                  the Two and One-Eighth Year Benchmark Treasury shall be, as
                  calculated by the Reset Agent, the yield to maturity for the
                  Two and One-Eighth Year Benchmark Treasury, expressed as a
                  bond equivalent on the basis of a year of 365 or 366 days, as
                  applicable, and applied on a daily basis, and computed by
                  taking the arithmetic mean of the secondary market bid rates,
                  as of 10:30 A.M., New York City time, on the Secondary
                  Remarketing Date of three leading United States government
                  securities dealers selected by the Reset Agent after
                  consultation with the Company (which may include the Reset
                  Agent or an Affiliate thereof).

                                      -14-
<PAGE>
                           "Two and One-Quarter Year Benchmark Treasury" means
                  direct obligations of the United States (which may be
                  obligations traded on a when-issued basis only) having a
                  maturity comparable to the remaining term to maturity of the
                  Notes, as agreed upon by the Company and the Reset Agent. The
                  rate for the Two and One-Quarter Year Benchmark Treasury will
                  be the bid side rate displayed at 10:00 A.M., New York City
                  time, on the Initial Remarketing Date in the Telerate system
                  (or if the Telerate system is (a) no longer available on the
                  Initial Remarketing Date or (b) in the opinion of the Reset
                  Agent (after consultation with the Company) no longer an
                  appropriate system from which to obtain such rate, such other
                  nationally recognized quotation system as, in the opinion of
                  the Reset Agent (after consultation with the Company), is
                  appropriate). If such rate is not so displayed, the rate for
                  the Two and One-Quarter Year Benchmark Treasury shall be, as
                  calculated by the Reset Agent, the yield to maturity for the
                  Two and One-Quarter Year Benchmark Treasury, expressed as a
                  bond equivalent on the basis of a year of 365 or 366 days, as
                  applicable, and applied on a daily basis, and computed by
                  taking the arithmetic mean of the secondary market bid rates,
                  as of 10:30 A.M., New York City time, on the Initial
                  Remarketing Date of three leading United States government
                  securities dealers selected by the Reset Agent after
                  consultation with the Company (which may include the Reset
                  Agent or an Affiliate thereof).

                           "Underwriting Agreement" means the Underwriting
                  Agreement dated July 25, 2002 between the Company and Merrill
                  Lynch, Pierce, Fenner & Smith Incorporated and Salomon Smith
                  Barney Inc., as underwriters therein.

                  Section 1.2       Compliance Certificates and Opinions.

                  Except as otherwise expressly provided by this Agreement, upon
any application or request by the Company to the Agent to take any action under
any provision of this Agreement, the Company shall furnish to the Agent an
Officer's Certificate stating that all conditions precedent, if any, provided
for in this Agreement relating to the proposed action have been complied with
and, if reasonably requested by the Agent, an Opinion of Counsel addressed to
the Agent stating that, in the opinion of such counsel, all such conditions
precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Agreement relating to such
particular application or request, no additional certificate or opinion need be
furnished.

                  Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Agreement shall include:

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

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

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

                                      -15-
<PAGE>
                  (4) a statement as to whether, in the opinion of each such
         Person, such condition or covenant has been complied with.

                  Section 1.3       Form of Documents Delivered to Agent.

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

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

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

                  Section 1.4       Acts of Holders; Record Dates.

                  (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Agreement to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Agent and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Agreement and (subject to Section 7.1 hereof) conclusive in favor of the Agent
and the Company, if made in the manner provided in this Section 1.4.

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

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

                  (d) Any request, demand, authorization, direction, notice,
consent, waiver or other Act of the Holder of any Certificate shall bind every
future Holder of the same Certificate and the Holder of every Certificate issued
upon the registration of transfer thereof or in exchange therefor or in lieu

                                      -16-
<PAGE>
thereof in respect of anything done, omitted or suffered to be done by the Agent
or the Company in reliance thereon, whether or not notation of such action is
made upon such Certificate.

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

                  With respect to any record date set pursuant to this Section
1.4, the Company may designate any date as the "Expiration Date" and from time
to time may change the Expiration Date to any earlier or later day; provided
that no such change shall be effective unless notice of the proposed new
Expiration Date is given to the Agent in writing, and to each Holder of
Securities in the manner set forth in Section 1.6 hereof, on or prior to the
existing Expiration Date. If an Expiration Date is not designated with respect
to any record date set pursuant to this Section 1.4, the Company shall be deemed
to have initially designated the 180th day after such record date as the
Expiration Date with respect thereto, subject to its right to change the
Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no
Expiration Date shall be later than the 180th day after the applicable record
date.

                  Section 1.5       Notices.

                  Any request, demand, authorization, direction, instruction,
notice, consent, waiver or Act of Holders or other document provided or
permitted by this Agreement to be made upon, given or furnished to, or filed
with,

                  (1) the Agent by any Holder or by the Company shall be
         sufficient for every purpose hereunder (unless otherwise herein
         expressly provided) if made, given, furnished or filed in writing
         (which may be via facsimile) and personally delivered or mailed,
         first-class postage prepaid, to the Agent at JPMorgan Chase Bank, 450
         West 33rd Street, 15th Floor, New York, New York 10001, Attention:
         Institutional Trust Services, Facsimile: (212) 946-8154, or at any
         other address previously furnished in writing by the Agent to the
         Holders and the Company; or

                  (2) the Company by the Agent or by any Holder shall be
         sufficient for every purpose hereunder (unless otherwise herein
         expressly provided) if made, given, furnished or filed in writing and
         personally delivered or mailed, first-class postage prepaid, to the
         Company at The St. Paul Companies, Inc., 385 Washington Street, St.
         Paul, Minnesota 55102 Attention: Bruce A.

                                      -17-
<PAGE>
         Backberg, Esq., Facsimile: (651) 310-8204 or at any other address
         previously furnished in writing to the Agent by the Company; or

                  (3) the Collateral Agent by the Agent, the Company or any
         Holder shall be sufficient for every purpose hereunder (unless
         otherwise herein expressly provided) if made, given, furnished or filed
         in writing and personally delivered or mailed, first-class postage
         prepaid, addressed to the Collateral Agent at BNY Midwest Trust
         Company, 2 North LaSalle Street, Suite 1020, Chicago, Illinois 60602
         Attention: Daniel G. Donovan, or at any other address previously
         furnished in writing by the Collateral Agent to the Agent, the Company
         and the Holders; or

                  (4) the Indenture Trustee by the Company shall be sufficient
         for every purpose hereunder (unless otherwise herein expressly
         provided) if made, given, furnished or filed in writing and personally
         delivered or mailed, first-class postage prepaid, addressed to the
         Indenture Trustee at 450 West 33rd Street, 15th Floor, New York, New
         York 10001, Attention: Institutional Trust Services, Facsimile: (212)
         946-8154, or at any other address previously furnished in writing by
         the Indenture Trustee to the Company.

                  Section 1.6       Notice to Holders; Waiver.

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

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

                  Section 1.7       Effect of Headings and Table of Contents.

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

                  Section 1.8       Successors and Assigns.

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

                                      -18-
<PAGE>
                  Section 1.9       Separability Clause.

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

                  Section 1.10      Benefits of Agreement.

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

                  Section 1.11      Governing Law.

                  THIS AGREEMENT AND THE SECURITIES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                  Section 1.12      Legal Holidays.

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

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

                                      -19-
<PAGE>
                  Section 1.13      Counterparts.

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

                  Section 1.14      Inspection of Agreement.

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

                  Section 1.15 Appointment of Financial Institution as Agent for
the Company.

                  The Company may appoint a financial institution (which may be
the Collateral Agent) to act as its agent in performing its obligations and in
accepting and enforcing performance of the obligations of the Agent and the
Holders, under this Agreement and the Purchase Contracts, by giving notice of
such appointment in the manner provided in Section 1.5 hereof. Any such
appointment shall not relieve the Company in any way from its obligation
hereunder.

                  Section 1.16      No Waiver.

                  No failure on the part of the Company, the Agent, the
Collateral Agent, the Securities Intermediary or any of their respective agents
to exercise, and no course of dealing with respect to, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise by the Company, the Agent, the
Collateral Agent, the Securities Intermediary or any of their respective agents
of any right, power or remedy hereunder preclude any further exercise thereof or
the exercise of any right, power or remedy. The remedies herein are cumulative
and are not exclusive of any remedies provided by law.

                                   ARTICLE II

                                CERTIFICATE FORMS

                  Section 2.1       Forms of Certificates Generally.

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

                  The definitive Corporate Unit Certificates may be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers of the

                                      -20-
<PAGE>
Company executing such Corporate Unit Certificates, consistent with the
provisions of this Agreement, as evidenced by their execution thereof.

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

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

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

                  THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF
                  THE PURCHASE CONTRACT AGREEMENT (AS HEREINAFTER DEFINED) AND
                  IS REGISTERED IN THE NAME OF THE CLEARING AGENCY OR A NOMINEE
                  THEREOF. THIS CERTIFICATE MAY NOT BE EXCHANGED IN WHOLE OR IN
                  PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS
                  CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME
                  OF ANY PERSON OTHER THAN SUCH CLEARING AGENCY OR A NOMINEE
                  THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
                  PURCHASE CONTRACT AGREEMENT.

                  Section 2.2 Form of Agent's Certificate of Authentication.

                  The form of the Agent's certificate of authentication of the
Corporate Units shall be in substantially the form set forth on the form of the
Corporate Unit Certificates.

                  The form of the Agent's certificate of authentication of the
Treasury Units shall be in substantially the form set forth on the form of the
Treasury Unit Certificates.

                                   ARTICLE III

                                 THE SECURITIES

                  Section 3.1       Title and Terms; Denominations.

                  The aggregate number of Corporate Units and Treasury Units
evidenced by Certificates authenticated, executed on behalf of the Holders and
delivered hereunder is limited to 8,855,000, except for Certificates
authenticated, executed and delivered upon registration of, transfer of, in
exchange for, or

                                      -21-
<PAGE>
in lieu of, other Certificates pursuant to Section 3.4, 3.5, 3.9, 3.10, 3.13,
3.14, 5.7(b)(2), 5.10 or 8.5 hereof.

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

                  Section 3.2 Rights and Obligations Evidenced by the
Certificates.

                  Each Corporate Unit Certificate shall evidence the number of
Corporate Units specified therein, with each such Corporate Unit representing
the ownership by the Holder thereof of a beneficial interest in a Note or the
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
subject to the Pledge of such Note or the Applicable Ownership Interest in the
Treasury Portfolio, as the case may be, by such Holder pursuant to the Pledge
Agreement, and the rights and obligations of the Holder thereof and the Company
under one Purchase Contract. The Agent as attorney-in-fact for, and on behalf
of, the Holder of each Corporate Unit shall pledge, pursuant to the Pledge
Agreement, the Note or the Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, forming a part of such Corporate Unit, to the
Collateral Agent and grant to the Collateral Agent a security interest in the
right, title, and interest of such Holder in such Note or the Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, for the
benefit of the Company, to secure the obligation of the Holder under each
Purchase Contract to purchase the shares of Common Stock.

                  Each Treasury Unit Certificate shall evidence the number of
Treasury Units specified therein, with each such Treasury Unit representing the
ownership by the Holder thereof of a 1/20, or 5%, undivided beneficial ownership
interest in a Treasury Security with a principal amount at maturity equal to
$1,000, subject to the Pledge of such Treasury Security by such Holder pursuant
to the Pledge Agreement, and the rights and obligations of the Holder thereof
and the Company under one Purchase Contract. The Agent as attorney-in-fact for,
and on behalf of, the Holder of each Treasury Unit shall pledge, pursuant to the
Pledge Agreement, the Treasury Security to the Collateral Agent and grant to the
Collateral Agent a security interest in the right, title and interest of such
Holder in such Treasury Security, for the benefit of the Company, to secure the
obligation of the Holder under each Purchase Contract to purchase the Common
Stock of the Company.

                  Prior to the purchase of shares of Common Stock under each
Purchase Contract, such Purchase Contract shall not entitle the Holder of a
Security to any rights of a holder of shares of Common Stock, including, without
limitation, the right to vote or receive any dividends or other payments or to
consent or to receive notice as a shareholder in respect of the meetings of
shareholders or for the election of directors of the Company or for any other
matter, or any other rights whatsoever as a shareholder of the Company.

                  Section 3.3 Execution, Authentication, Delivery and Dating.

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

                                      -22-
<PAGE>
                  The Certificates shall be executed on behalf of the Company by
(i) any one of its Chairman of the Board, its Chief Executive Officer, its
President, an Executive Vice President or a Senior Vice President and (ii) any
one of its Treasurer or one of its Assistant Treasurers or its Secretary or one
of its Assistant Secretaries. The signature of any of these officers on the
Certificates may be manual or facsimile.

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

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

                  Each Certificate shall be dated the date of its
authentication.

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

                  Section 3.4       Temporary Certificates.

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

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

                                      -23-
<PAGE>
                  Section 3.5 Registration; Registration of Transfer and
Exchange.

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

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

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

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

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

                  No service charge shall be made for any registration of
transfer or exchange of a Certificate, but the Company and the Agent may require
payment from the Holder of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of
transfer or exchange of Certificates, other than any exchanges pursuant to
Sections 3.4, 3.6, 3.9 and 8.5 hereof not involving any transfer.

                  Notwithstanding the foregoing, the Company shall not be
obligated to execute and deliver to the Agent, and the Agent shall not be
obligated to authenticate, execute on behalf of the Holder and deliver, any
Certificate presented or surrendered for registration of transfer or for
exchange on or after the Business Day immediately preceding the earlier of the
Purchase Contract Settlement Date or the Termination Date. In lieu of delivery
of a new Certificate, upon satisfaction of the applicable conditions specified
above in this Section 3.5 and receipt of appropriate registration or transfer
instructions from such Holder, the Agent shall (i) if the Purchase Contract
Settlement Date has occurred, deliver (or request the Company to deliver) the
shares of Common Stock issuable in respect of the Purchase Contracts forming a
part of the Securities evidenced by such Certificate (together with any cash or
other property to which the Holder is entitled), or (ii) if a Termination Event
shall have occurred prior to the Purchase

                                      -24-
<PAGE>
Contract Settlement Date, transfer the Notes, the appropriate Applicable
Ownership Interest in the Treasury Portfolio or the Treasury Securities, as the
case may be, evidenced thereby, in each case subject to the applicable
conditions and in accordance with the applicable provisions of Article V hereof.

                  Notwithstanding anything in this Agreement to the contrary, no
transfer by any Holder to any Person other than the Company of any Corporate
Unit, Treasury Unit or Note may be made or will be recognized unless such
instrument has been surrendered and accepted for registration of transfer in
accordance with the provisions of this Section 3.5, or unless such transfer is
effectuated through the book-entry system described in Section 3.6 hereof.

                  Section 3.6       Book-Entry Interests.

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

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

                  (b) the Company and the Agent shall be entitled to deal with
the Clearing Agency for all purposes of this Agreement (including receiving
approvals, votes or consents hereunder) as the Holder of the Securities and the
sole holder of the Global Certificate(s) and shall have no obligation to the
Beneficial Owners;

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

                  (d) the rights of the Beneficial Owners shall be exercised
only through the Clearing Agency and shall be limited to those established by
law and agreements between such Beneficial Owners and the Clearing Agency and/or
the Clearing Agency Participants. The Clearing Agency will make book entry
transfers among Clearing Agency Participants.

                  Section 3.7       Notices to Holders.

                  Whenever a notice or other communication to the Holders is
required to be given under this Agreement, the Company or the Agent shall give
such notices and communications to the Holders and, with respect to any
Securities registered in the name of a Clearing Agency or the nominee of a
Clearing Agency, the Company or the Agent shall, except as set forth herein,
have no obligations to the Beneficial Owners.

                                      -25-
<PAGE>
                  Section 3.8       Appointment of Successor Clearing Agency.

                  If any Clearing Agency elects to discontinue its services as
securities depositary with respect to the Securities, the Company may, in its
sole discretion, appoint a successor Clearing Agency with respect to the
Securities.

                  Section 3.9       Definitive Certificates.

                  If (i) a Clearing Agency elects to discontinue its services as
securities depositary with respect to the Securities and a successor Clearing
Agency is not appointed within 90 days after such discontinuance pursuant to
Section 3.8 hereof or (ii) there shall have occurred and be continuing a default
by the Company in respect of its obligations under one or more Purchase
Contracts, or the Indenture, then upon surrender of the Global Certificates
representing the Book-Entry Interests with respect to the Securities by the
Clearing Agency, accompanied by registration instructions, the Company shall
cause definitive Certificates to be delivered to Beneficial Owners in accordance
with the instructions of the Clearing Agency.

                  Section 3.10 Mutilated, Destroyed, Lost and Stolen
Certificates.

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

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

                  Notwithstanding the foregoing, the Company shall not be
obligated to execute and deliver to the Agent, and the Agent shall not be
obligated to authenticate, execute on behalf of the Holder, and deliver to the
Holder, a Certificate on or after the Business Day immediately preceding the
earlier of the Purchase Contract Settlement Date or the Termination Date. In
lieu of delivery of a new Certificate, upon satisfaction of the applicable
conditions specified above in this Section 3.10 and receipt of appropriate
registration or transfer instructions from such Holder, the Agent shall (i) if
the Purchase Contract Settlement Date has occurred, deliver (or request the
Company to deliver) the shares of Common Stock issuable in respect of the
Purchase Contracts forming a part of the Securities evidenced by such
Certificate (together with any cash or other property to which the Holder is
entitled), or (ii) if a Termination Event shall have occurred prior to the
Purchase Contract Settlement Date, transfer the Notes, the appropriate
Applicable Ownership Interest in the Treasury Portfolio or the Treasury
Securities, as the case may be, evidenced thereby, in each case subject to the
applicable conditions and in accordance with the applicable provisions of
Article V hereof.

                                      -26-
<PAGE>
                  Upon the issuance of any new Certificate under this Section
3.10, the Company and the Agent may require the payment by the Holder of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the reasonable fees and
expenses of the Agent) connected therewith.

                  Every new Certificate issued pursuant to this Section 3.10 in
lieu of any destroyed, lost or stolen Certificate shall constitute an original
additional contractual obligation of the Company and of the Holder in respect of
the Security evidenced thereby, whether or not the destroyed, lost or stolen
Certificate (and the Securities evidenced thereby) shall be at any time
enforceable by anyone, and shall be entitled to all the benefits and be subject
to all the obligations of this Agreement equally and proportionately with any
and all other Certificates delivered hereunder.

                  The provisions of this Section 3.10 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Certificates.

                  Section 3.11      Persons Deemed Owners.

                  Prior to due presentment of a Certificate for registration of
transfer, the Company and the Agent, and any agent of the Company or the Agent,
may treat the Person in whose name such Certificate is registered as the owner
of the Corporate Units or Treasury Units evidenced thereby, for the purpose of
(subject to any applicable Record Date) receiving interest on the Notes or on
the maturing quarterly interest strips of the Treasury Portfolio, as applicable,
receiving payments of Contract Adjustment Payments (if any), for the performance
of the Purchase Contracts and for all other purposes whatsoever, whether or not
any interest on the Notes shall be overdue and notwithstanding any notice to the
contrary, and neither the Company nor the Agent, nor any agent of the Company or
the Agent, shall be affected by notice to the contrary.

                  Notwithstanding the foregoing, with respect to any Global
Certificate, nothing herein shall prevent the Company, the Agent or any agent of
the Company or the Agent, from giving effect to any written certification, proxy
or other authorization furnished by any Clearing Agency (or its nominee), as a
Holder, with respect to such Global Certificate or impair, as between such
Clearing Agency and owners of beneficial interests in such Global Certificate,
the operation of customary practices governing the exercise of rights of such
Clearing Agency (or its nominee) as Holder of such Global Certificate. None of
the Company, the Agent nor any agent of the Company or the Agent will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests of a Global
Certificate or maintaining, supervising or reviewing any records relating to
such beneficial ownership interests.

                  Section 3.12      Cancellation.

                  All Certificates surrendered for delivery of shares of Common
Stock on or after the Purchase Contract Settlement Date, upon the transfer of
Notes, the appropriate Applicable Ownership Interest in the Treasury Portfolio
or Treasury Securities, as the case may be, after the occurrence of a
Termination Event or pursuant to an Early Settlement, or upon the registration
of a transfer or exchange of a Security, or a Collateral Substitution or the
reestablishment of a Corporate Unit or Treasury Unit shall, if surrendered to
any Person other than the Agent, be delivered to the Agent and, if not already
cancelled, shall be promptly cancelled by it. The Company may at any time
deliver to the Agent for

                                      -27-
<PAGE>
cancellation any Certificates previously authenticated, executed and delivered
hereunder which the Company may have acquired in any manner whatsoever, and all
Certificates so delivered shall, upon Issuer Order, be promptly cancelled by the
Agent. No Certificates shall be authenticated, executed on behalf of the Holder
and delivered in lieu of or in exchange for any Certificates cancelled as
provided in this Section 3.12, except as expressly permitted by this Agreement.
All cancelled Certificates held by the Agent shall be disposed of by the Agent
in its customary manner.

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

                  Section 3.13      Establishment of Treasury Units.

                  Subject to the conditions set forth in this Agreement, a
Holder may separate the Notes or the appropriate Applicable Ownership Interest
in the Treasury Portfolio, as applicable, from the related Purchase Contracts in
respect of a Corporate Unit by substituting for such Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
Treasury Securities in an aggregate principal amount of such Notes or the
appropriate Applicable Ownership Interest (as specified in clause (i) of the
definition of such term) in the Treasury Portfolio, as applicable (a "Collateral
Substitution"), at any time from and after the date of this Agreement and prior
to the seventh Business Day immediately preceding the Purchase Contract
Settlement Date in the case of the Notes and on or prior to the second Business
Day immediately preceding the Purchase Contract Settlement Date in the case of
the appropriate Applicable Ownership Interest in the Treasury Portfolio, in each
case by (a) depositing with the Collateral Agent Treasury Securities having an
aggregate principal amount at maturity equal to the aggregate principal amount
of the Notes comprising part of such Corporate Units or the appropriate
Applicable Ownership Interest (as specified in clause (i) of the definition of
such term) in the Treasury Portfolio comprising part of such Corporate Unit, as
the case may be, and (b) transferring the related Corporate Units to the Agent
accompanied by a notice to the Agent, substantially in the form of Exhibit D
hereto, stating that the Holder has transferred the relevant amount of Treasury
Securities to the Collateral Agent and requesting that the Agent instruct the
Collateral Agent to release the Notes or the appropriate Applicable Ownership
Interest in the Treasury Portfolio, as the case may be, underlying such
Corporate Units, whereupon the Agent shall promptly give such instruction to the
Collateral Agent, substantially in the form of Exhibit C hereto. Notwithstanding
the foregoing, a Holder may not separate the Notes or the appropriate Applicable
Ownership Interest in the Treasury Portfolio, as applicable, from the related
Purchase Contracts in respect of the Corporate Units held by such Holder during
the period commencing on the fourth Business Day immediately prior to the
Initial Remarketing Date (and, upon a Failed Initial Remarketing, prior to the
Secondary Remarketing Date) and ending on the fourth Business Day following the
Initial Remarketing Date (and, upon a Failed Initial Remarketing, following the
Secondary Remarketing Date). Upon receipt of the Treasury Securities described
in clause (a) above and the instruction described in clause (b) above, in
accordance with the terms of the Pledge Agreement, the Collateral Agent will
release to the Agent, on behalf of the Holder, Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
having the appropriate aggregate principal amount in the case of such Notes or
the appropriate Applicable Ownership Interest in the Treasury Portfolio, as the
case may be, from the Pledge, free and clear of the Company's security interest
therein, and upon receipt thereof the Agent shall promptly:

                           (i) cancel the related Corporate Units;

                                      -28-
<PAGE>
                           (ii) transfer the Notes or the appropriate Applicable
                  Ownership Interest in the Treasury Portfolio, as the case may
                  be, to the Holder; and

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

                  Holders who elect to separate the Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
from the related Purchase Contract and to substitute Treasury Securities for
such Notes or the appropriate Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, shall be responsible for any fees or expenses
payable to the Collateral Agent for its services as Collateral Agent in respect
of the substitution, and the Company shall not be responsible for any such fees
or expenses.

                  Holders may make Collateral Substitutions (i) only in integral
multiples of 20 Corporate Units if Treasury Securities are being substituted for
the Notes, or (ii) only in integral multiples of 32,000 Corporate Units if
Treasury Securities are being substituted for the appropriate Applicable
Ownership Interest in the Treasury Portfolio.

                  In the event a Holder making a Collateral Substitution
pursuant to this Section 3.13 fails to effect a book-entry transfer of the
Corporate Units or fails to deliver a Corporate Unit Certificate(s) to the Agent
after depositing Treasury Securities with the Collateral Agent, the Notes or the
appropriate Applicable Ownership Interest in the Treasury Portfolio, as the case
may be, constituting a part of such Corporate Units, and any interest on such
Notes or the Applicable Ownership Interest in the Treasury Portfolio, as the
case may be, shall be held in the name of the Agent or its nominee in trust for
the benefit of such Holder, until such Corporate Units are so transferred or the
Corporate Unit Certificate is so delivered, as the case may be, or, with respect
to a Corporate Unit Certificate, such Holder provides evidence satisfactory to
the Company and the Agent that such Corporate Unit Certificate has been
destroyed, lost or stolen, together with any indemnity that may be required by
the Agent and the Company.

                  Except as described in this Section 3.13, for so long as the
Purchase Contract underlying a Corporate Unit remains in effect, such Corporate
Unit shall not be separable into its constituent parts, and the rights and
obligations of the Holder in respect of the Notes or the appropriate Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, and Purchase
Contract comprising such Corporate Unit may be acquired, and may be transferred
and exchanged, only as a Corporate Unit.

                  Section 3.14      Reestablishment of Corporate Units.

                  Subject to the conditions set forth in this Agreement, a
Holder of a Treasury Unit may recreate Corporate Units at any time (i) prior to
the seventh Business Day immediately preceding the Purchase Contract Settlement
Date, if a Tax Event Redemption, a Successful Initial Remarketing or a
Successful Secondary Remarketing has not occurred, and (ii) on or prior to the
second Business Day immediately preceding the Purchase Contract Settlement Date,
if a Tax Event Redemption, a Successful Initial Remarketing or a Successful
Secondary Remarketing has occurred and an Applicable Ownership Interest in the
Treasury Portfolio has become a component of the Corporate Units, in each case
by (a) depositing with the Collateral Agent Notes or the appropriate Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, having an
aggregate principal amount in the case of the Notes, or

                                      -29-
<PAGE>
an appropriate Applicable Ownership Interest in the Treasury Portfolio, as the
case may be, equal to the aggregate principal amount of the Treasury Securities
comprising part of the Treasury Units and (b) transferring the related Treasury
Units to the Agent accompanied by a notice to the Agent, substantially in the
form of Exhibit D hereto, stating that the Holder has transferred the relevant
amount of Notes or the appropriate Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, to the Collateral Agent and requesting that the
Agent instruct the Collateral Agent to release the Treasury Securities
underlying such Treasury Units, whereupon the Agent shall promptly give such
instruction to the Collateral Agent, substantially in the form of Exhibit C
hereto. Notwithstanding the foregoing, a Holder may not reestablish Corporate
Units during the period commencing on the fourth Business Day immediately prior
the Initial Remarketing Date (and, upon a Failed Initial Remarketing, prior to
the Secondary Remarketing Date) and ending on the fourth Business Day following
the Initial Remarketing Date (and, upon a Failed Initial Remarketing, following
the Secondary Remarketing Date). Upon receipt of the Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
described in clause (a) above and the instruction described in clause (b) above,
in accordance with the terms of the Pledge Agreement, the Collateral Agent will
release to the Agent, on behalf of the Holder, the Treasury Securities having a
corresponding aggregate principal amount from the Pledge, free and clear of the
Company's security interest therein, and upon receipt thereof the Agent shall
promptly:

                           (i) cancel the related Treasury Units;

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

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

                  Holders who elect to reestablish Corporate Units shall be
responsible for any fees or expenses (including, without limitation, fees and
expenses payable to the Collateral Agent for its services as Collateral Agent)
in respect of the reestablishment and the Company shall not be responsible for
any such fees.

                  Holders of Treasury Units may reestablish Corporate Units in
integral multiples of 20 Treasury Units for the same multiple of 20 Corporate
Units if a Tax Event Redemption, a Successful Initial Remarketing or a
Successful Secondary Remarketing has not occurred, and in integral multiples of
32,000 Treasury Units for 32,000 Corporate Units if a Tax Event Redemption, a
Successful Initial Remarketing or a Successful Secondary Remarketing has
occurred.

                  In the event a Holder re-establishing Corporate Units pursuant
to this Section 3.14 fails to effect a book-entry transfer of the Treasury Units
or fails to deliver a Treasury Unit Certificate(s) to the Agent after depositing
Notes or the appropriate Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, with the Collateral Agent, the Treasury
Securities constituting a part of such Treasury Units shall be held in the name
of the Agent or its nominee in trust for the benefit of such Holder, until such
Treasury Units are so transferred or the Treasury Unit Certificate is so
delivered, as the case may be, or, with respect to a Treasury Unit Certificate,
such Holder provides evidence satisfactory to the Company and the Agent that
such Treasury Unit Certificate has been destroyed, lost or stolen, together with
any indemnity that may be required by the Agent and the Company.

                  Except as provided in this Section 3.14, for so long as the
Purchase Contract underlying a Treasury Unit remains in effect, such Treasury
Unit shall not be separable into its constituent parts and

                                      -30-
<PAGE>
the rights and obligations of the Holder of such Treasury Unit in respect of the
Treasury Security and Purchase Contract comprising such Treasury Unit may be
acquired, and may be transferred and exchanged, only as a Treasury Unit.

                  Section 3.15 Transfer of Collateral upon Occurrence of
Termination Event.

                  Upon the occurrence of a Termination Event and the transfer to
the Agent of the Notes, the appropriate Applicable Ownership Interest in the
Treasury Portfolio or the Treasury Securities, as the case may be, underlying
the Corporate Units and the Treasury Units pursuant to the terms of the Pledge
Agreement, the Agent shall request transfer instructions with respect to such
Notes or the appropriate Applicable Ownership Interest in the Treasury Portfolio
or Treasury Securities, as the case may be, from each Holder by written request
mailed to such Holder at its address as it appears in the Corporate Units
Register or the Treasury Units Register, as the case may be. Upon book-entry
transfer of the Corporate Units or Treasury Units or delivery of a Corporate
Unit Certificate or a Treasury Unit Certificate to the Agent with such transfer
instructions, the Agent shall transfer the Notes, the Applicable Ownership
Interest in the Treasury Portfolio or Treasury Securities, as the case may be,
underlying such Corporate Units or Treasury Units, as the case may be, to such
Holder by book-entry transfer, or other appropriate procedures, in accordance
with such instructions; provided that, to the extent that a Holder of Corporate
Units or Treasury Units would otherwise be entitled to receive less than $1,000
principal amount at maturity of the Treasury Portfolio or the Treasury
Securities, the Agent shall dispose of such securities for cash, and transfer
the appropriate amount of such cash to such Holder in accordance with such
Holder's instructions. In the event a Holder of Corporate Units or Treasury
Units fails to effect such transfer or delivery, the Notes, the appropriate
Applicable Ownership Interest in the Treasury Portfolio or Treasury Securities,
as the case may be, underlying such Corporate Units or Treasury Units, as the
case may be, and any distributions thereon, shall be held in the name of the
Agent or its nominee in trust for the benefit of such Holder, until such
Corporate Units or Treasury Units are transferred or the Corporate Unit
Certificate or Treasury Unit Certificate is surrendered or such Holder provides
satisfactory evidence that such Corporate Unit Certificate or Treasury Unit
Certificate has been destroyed, lost or stolen, together with any indemnity that
may be required by the Agent and the Company.

                  Section 3.16      No Consent to Assumption.

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

                  Section 3.17      CUSIP Numbers.

                  The Company in issuing the Securities may use "CUSIP" numbers
(if then generally in use), and, if so, the Agent shall use "CUSIP" numbers in
notices of redemption as a convenience to Holders; provided that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers. The Company will promptly notify
the Agent of any changes in the "CUSIP" numbers.

                                      -31-
<PAGE>
                                   ARTICLE IV

                   THE NOTES AND APPLICABLE OWNERSHIP INTEREST

                            IN THE TREASURY PORTFOLIO

                  Section 4.1 Interest and Other Payments; Rights to Payments
Preserved; Rate Reset; Notice.

                  Any distribution on any Note or on the appropriate Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, which is made
on any Payment Date shall, subject to receipt thereof by the Agent from the
Indenture Trustee or from the Collateral Agent as provided by the terms of the
Pledge Agreement, be paid to the Person in whose name the Corporate Unit
Certificate (or one or more Predecessor Corporate Unit Certificates) of which
such Note or the appropriate Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, is a part is registered at the close of business
on the Record Date for such Payment Date.

                  Each Corporate Unit Certificate evidencing Notes or the
appropriate Applicable Ownership Interest in the Treasury Portfolio delivered
under this Agreement upon registration of transfer of or in exchange for or in
lieu of any other Corporate Unit Certificate shall carry the rights to accrued
and unpaid distributions, and other amounts that are to accrue, which were or
will be carried by the Notes or the appropriate Applicable Ownership Interest in
the Treasury Portfolio underlying such other Corporate Unit Certificate.

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

                  The applicable Coupon Rate on the Notes on and after May 16,
2005 will be reset on the Initial Remarketing Date to the applicable Reset Rate
(such Reset Rate to be in effect on and after May 16, 2005), except in the event
of a Failed Initial Remarketing. In the event of a Failed Initial Remarketing,
the applicable Coupon Rate on the Notes outstanding on and after July 1, 2005
will be reset

                                      -32-
<PAGE>
on the Secondary Remarketing Date to the applicable Reset Rate (such Reset Rate
to be in effect on and after July 1, 2005), except in the event of a Failed
Secondary Remarketing. In the event of a Failed Secondary Remarketing, the
applicable Coupon Rate on the Notes outstanding on and after the Purchase
Contract Settlement Date will be reset on the Final Remarketing Date to the
applicable Reset Rate (such Reset Rate to be in effect on and after the Purchase
Contract Settlement Date), except in the event of a Failed Final Remarketing. On
the applicable Reset Announcement Date, the Reset Spread and the Two-Year
Benchmark Treasury, Two and One-Quarter Benchmark Treasury or Two and One-Eighth
Benchmark Treasury, as applicable, to be used to determine the Reset Rate will
be announced by the Company. On the Business Day immediately following the Reset
Announcement Date, the Holders of Notes will be notified of such Reset Spread
and Two-Year Benchmark Treasury, Two and One-Quarter Benchmark Treasury or Two
and One-Eighth Benchmark Treasury, as applicable, by the Company. Such notice
shall be sufficiently given to Holders of Notes if published in an Authorized
Newspaper in The City of New York.

                  Not later than seven calendar days nor more than fifteen
calendar days prior to the Reset Announcement Date, the Company will notify DTC
or its nominee (or any successor Clearing Agency or its nominee) by first-class
mail, postage prepaid, to notify the Beneficial Owners or Clearing Agency
Participants holding Corporate Units or Treasury Units of such Reset
Announcement Date and, in the case of a Final Remarketing, the procedures to be
followed by Holders of Corporate Units who intend to settle their obligation
under the Purchase Contract with separate cash on the Purchase Contract
Settlement Date.

                  Section 4.2       Notice and Voting.

                  Under the terms of the Pledge Agreement, the Agent will be
entitled to exercise the voting and any other consensual rights pertaining to
the Notes pledged with the Collateral Agent but only to the extent instructed by
the Holders as described below. Upon receipt of notice of any meeting at which
holders of Notes are entitled to vote or upon any solicitation of consents,
waivers or proxies of holders of Notes, the Agent shall, as soon as practicable
thereafter, mail to the Holders of Corporate Units a notice (prepared by the
Company) (a) containing such information as is contained in the notice or
solicitation, (b) stating that each Holder on the record date set by the Agent
therefor (which, to the extent possible, shall be the same date as the record
date for determining the holders of Notes entitled to vote) shall be entitled to
instruct the Agent as to the exercise of the voting rights pertaining to the
Notes underlying their Corporate Units and (c) stating the manner in which such
instructions may be given. Upon the written request of the Holders of Corporate
Units on such record date, the Agent shall endeavor insofar as practicable to
vote or cause to be voted, in accordance with the instructions set forth in such
requests, the maximum number of Notes as to which any particular voting
instructions are received. In the absence of specific instructions from the
Holder of a Corporate Unit, the Agent shall abstain from voting the Notes
underlying such Corporate Units. The Company hereby agrees, if applicable, to
solicit Holders of Corporate Units to timely instruct the Agent in order to
enable the Agent to vote such Notes.

                  Section 4.3       Tax Event Redemption.

                  Upon the occurrence of a Tax Event Redemption prior to May 16,
2005, or, in the event of a Failed Initial Remarketing but a Successful
Secondary Remarketing prior to July 1, 2005 or, in the event of a Failed
Secondary Remarketing, prior to the Purchase Contract Settlement Date, pursuant
to the terms of the Pledge Agreement, the Collateral Agent will apply an amount
equal to the aggregate Redemption Amount for the Notes that are components of
Corporate Units, plus accrued and unpaid interest on such Notes with respect to
any Interest Payment Date on or prior to the date of redemption, to

                                      -33-
<PAGE>
purchase on behalf of the Holders of Corporate Units the Treasury Portfolio and
promptly remit the remaining portion of such Redemption Amount to the Agent for
payment to the Holders of such Corporate Units. The Treasury Portfolio will be
substituted for the pledged Notes, and will be held by the Collateral Agent in
accordance with the terms of the Pledge Agreement to secure the obligation of
each Holder of a Corporate Unit to purchase the Common Stock of the Company
under the Purchase Contract constituting a part of such Corporate Units.
Following the occurrence of a Tax Event Redemption prior to May 16, 2005 or, in
the event of a Failed Initial Remarketing but a Successful Secondary
Remarketing, prior to July 1, 2005 or, in the event of a Failed Secondary
Remarketing, prior to the Purchase Contract Settlement Date, the Holders of
Corporate Units and the Collateral Agent shall have such security interests,
rights and obligations with respect to the Treasury Portfolio as the Holders of
Corporate Units and the Collateral Agent had in respect of the Notes, as the
case may be, subject to the Pledge thereof as provided in Sections 2, 3, 4, 5
and 6 of the Pledge Agreement, and any reference herein or in the Certificates
to the Note shall be deemed to be a reference to such Treasury Portfolio and any
reference herein or in the Certificates to interest on the Notes shall be deemed
to be a reference to corresponding distributions on the Treasury Portfolio. The
Company may cause to be made in any Corporate Unit Certificates thereafter to be
issued such change in phraseology and form (but not in substance) as may be
appropriate to reflect the substitution of the Treasury Portfolio for Notes as
collateral.

                  Section 4.4       CUSIP Numbers.

                  The Company in issuing the Notes may use "CUSIP" numbers (if
then generally in use), and, if so, the Indenture Trustee shall use "CUSIP"
numbers in notices of redemption as a convenience to Holders; provided that any
such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Notes or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Notes, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company will promptly notify the
Indenture Trustee and the Agent of any changes in the "CUSIP" numbers.

                                    ARTICLE V

                             THE PURCHASE CONTRACTS

                  Section 5.1       Purchase of Shares of Common Stock.

                  Each Purchase Contract shall obligate the Holder of the
related Security to purchase, and the Company to sell, on the Purchase Contract
Settlement Date at a price equal to the Stated Amount (the "Purchase Price"), a
number of newly issued shares of Common Stock equal to the Settlement Rate
unless an Early Settlement has occurred in accordance with Section 5.7(b)(2) or
Section 5.10 hereof, or, on or prior to the Purchase Contract Settlement Date,
there shall have occurred a Termination Event with respect to the Security of
which such Purchase Contract is a part. The "Settlement Rate" is equal to (a) if
the Applicable Market Value (as defined below) is equal to or greater than
$29.04 (the "Threshold Appreciation Price"), 1.7218 shares of Common Stock per
Purchase Contract, which is equal to the Stated Amount divided by the Threshold
Appreciation Price, (b) if the Applicable Market Value is less than the
Threshold Appreciation Price but is greater than $24.20 (the "Reference Price"),
the number of shares of Common Stock per Purchase Contract equal to the Stated
Amount divided by the Applicable Market Value and (c) if the Applicable Market
Value is less than or equal to the Reference Price, 2.0661 shares of Common
Stock per Purchase Contract, in each case subject to adjustment as provided in
Section 5.7 (and

                                      -34-
<PAGE>
in each case rounded upward or downward to the nearest 1/10,000th of a share).
As provided in Section 5.11 hereof, no fractional shares of Common Stock will be
issued upon settlement of Purchase Contracts.

                  The "Applicable Market Value" means the average of the Closing
Price per share of Common Stock on each of the 20 consecutive Trading Days
ending on (a) the third Trading Day immediately preceding the Purchase Contract
Settlement Date or (b) for purposes of determining cash payable in lieu of
fractional shares in connection with an Early Settlement pursuant to Section
5.11 hereof, the third Trading Day immediately preceding the relevant Early
Settlement Date or (c) for the purposes of clause (2) of Section 5.7(b) the
third Trading Day immediately preceding the Cash Merger Date.

                  The "Closing Price" of the Common Stock on any date of
determination means the closing sale price (or, if no closing sale price is
reported, the last reported sale price) of the Common Stock on The New York
Stock Exchange (the "NYSE") on any such date; or, if the Common Stock is not
listed for trading on the NYSE on any such date, the closing sale price as
reported in the composite transactions for the principal United States national
or regional securities exchange on which the Common Stock is so listed; or if
the Common Stock is not so listed on a United States national or regional
securities exchange, the last closing sale price of the Common Stock as reported
by the Nasdaq National Market; or, if the Common Stock is not so reported, the
last quoted bid price for the Common Stock in the over-the-counter market as
reported by the National Quotation Bureau or similar organization; or, if such
bid price is not available, the Closing Price means the market value of the
Common Stock on the date determined by a nationally recognized independent
investment banking firm retained for this purpose by the Company.

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

                  Each Holder of a Corporate Unit or a Treasury Unit, by its
acceptance thereof, irrevocably authorizes the Agent to enter into and perform
the related Purchase Contract on its behalf as its attorney-in-fact (including
the execution of Certificates on behalf of such Holder), agrees to be bound by
the terms and provisions thereof, covenants and agrees to perform its
obligations under such Purchase Contracts, and consents to the provisions
hereof, irrevocably authorizes the Agent as its attorney-in-fact to enter into
and perform the Pledge Agreement on its behalf as its attorney-in-fact, and
consents to and agrees to be bound by the Pledge of the Notes, the Treasury
Portfolio or the Treasury Securities pursuant to the Pledge Agreement; provided
that upon a Termination Event, the rights of the Holder of such Security under
the Purchase Contract may be enforced without regard to any other rights or
obligations. Each Holder of a Corporate Unit or a Treasury Unit, by its
acceptance thereof, further covenants and agrees that, to the extent and in the
manner provided in Section 5.5 hereof and the Pledge Agreement, but subject to
the terms thereof, Proceeds of the Treasury Securities, the Notes or the
Treasury Portfolio, as applicable, on the Purchase Contract Settlement Date
shall be paid by the Collateral Agent to the Company in satisfaction of such
Holder's obligations under such Purchase Contract and such Holder shall acquire
no right, title or interest in such Proceeds.

                  Upon registration of transfer of a Certificate, the transferee
shall be bound (without the necessity of any other action on the part of such
transferee) by the terms of this Agreement, the Purchase Contracts underlying
such Certificate and the Pledge Agreement and the transferor shall be released
from the obligations under this Agreement, the Purchase Contracts underlying the
Certificates so transferred

                                      -35-
<PAGE>
and the Pledge Agreement. The Company covenants and agrees, and each Holder of a
Certificate, by its acceptance thereof, likewise covenants and agrees, to be
bound by the provisions of this paragraph.

                  Section 5.2       Contract Adjustment Payments.

                  (a) Subject to Section 5.3 herein, the Company shall pay, on
each Payment Date, the Contract Adjustment Payments, if any, payable in respect
of each Purchase Contract to the Person in whose name a Certificate (or one or
more Predecessor Certificates) is registered at the close of business on the
Record Date next preceding such Payment Date in such coin or currency of the
United States as at the time of payment shall be legal tender for payments. The
Contract Adjustment Payments, if any, will be payable at the New York Office
maintained for that purpose or, at the option of the Company, by check mailed to
the address of the Person entitled thereto at such Person's address as it
appears on the Corporate Units Register or the Treasury Units Register or by
wire transfer to the account designated by a prior written notice by such
Person.

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

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

                  Subject to Section 5.7(b)(2) and Section 5.10 hereof, in the
case of any Security with respect to which Early Settlement of the underlying
Purchase Contract is effected on an Early Settlement Date, or in respect of
which Cash Settlement of the underlying Purchase Contract is effected on the
Business Day immediately preceding the Purchase Contract Settlement Date, or
with respect to which a Collateral Substitution or an establishment or
re-establishment of Corporate Units pursuant to Section 3.14 hereof is effected,
in each case on a date that is after any Record Date and on or prior to the next
succeeding Payment Date, Contract Adjustment Payments on the Purchase Contracts
underlying such Securities otherwise payable on such Payment Date shall be
payable on such Payment Date notwithstanding such Cash Settlement, Early
Settlement, Collateral Substitution or establishment or re-establishment of
Corporate Units, and such Contract Adjustment Payments shall be paid to the
Person in whose name the Certificate evidencing such Security (or one or more
Predecessor Certificates) is registered at the close of business on such Record
Date.

                  Except as otherwise expressly provided in the immediately
preceding sentence, in the case of any Security with respect to which Cash
Settlement or Early Settlement of the underlying Purchase Contract is effected
on the Business Day immediately preceding the Purchase Contract Settlement Date
or on an Early Settlement Date, as the case may be, or with respect to which a
Collateral Substitution or an establishment or re-establishment of Corporate
Units has been effected, Contract Adjustment Payments, if any (including any
Deferred Contract Adjustment Payments), that would otherwise be payable after
the Purchase Contract Settlement Date or Early Settlement Date, Collateral
Substitution or such establishment or re-establishment with respect to such
Purchase Contract shall not be payable.

                                      -36-
<PAGE>

         (b) The Company's obligations with respect to Contract Adjustment
Payments, if any, will be subordinated and junior in right of payment to the
Company's obligations under any Senior Indebtedness.

         (c) In the event (x) of any payment by, or distribution of assets of,
the Company of any kind or character, whether in cash, property or securities,
to creditors upon any dissolution, winding-up, liquidation or reorganization of
the Company, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other proceedings, or (y) subject to the provisions of Section
5.2(e) below, that (i) a default shall have occurred and be continuing with
respect to the payment of principal, interest or any other monetary amounts due
and payable on any Senior Indebtedness and such default shall have continued
beyond the period of grace, if any, specified in the instrument evidencing such
Senior Indebtedness (and the Agent shall have received written notice thereof
from the Company or one or more holders of Senior Indebtedness or their
representative or representatives or the trustee or trustees under any indenture
pursuant to which any such Senior Indebtedness may have been issued), or (ii)
the maturity of any Senior Indebtedness shall have been accelerated because of a
default in respect of such Senior Indebtedness (and the Agent shall have
received written notice thereof from the Company or one or more holders of
Senior Indebtedness or their representative or representatives or the trustee or
trustees under any indenture pursuant to which any such Senior Indebtedness may
have been issued), then:

                  (i) the holders of all Senior Indebtedness shall first be
         entitled to receive, in the case of clause (x) above, payment in full
         of all amounts due or to become due upon all Senior Indebtedness and,
         in the case of subclauses (i) and (ii) of clause (y) above, payment of
         all amounts due thereon, or provision shall be made for such payment in
         money or money's worth, before the Holders of any of the Securities are
         entitled to receive any Contract Adjustment Payments on the Purchase
         Contracts underlying the Securities;

                  (ii) any payment by, or distribution of assets of, the Company
         of any kind or character, whether in cash, property or securities, to
         which the Holders of any of the Securities would be entitled except for
         the provisions of Sections 5.2(b) through (n), including any such
         payment or distribution which may be payable or deliverable by reason
         of the payment of any other indebtedness of the Company being
         subordinated to the payment of such Contract Adjustment Payments on the
         Purchase Contracts underlying the Securities, shall be paid or
         delivered by the Person making such payment or distribution, whether a
         trustee in bankruptcy, a receiver or liquidating trustee or otherwise,
         directly to the holders of such Senior Indebtedness or their
         representative or representatives or to the trustee or trustees under
         any indenture under which any instruments evidencing any of such Senior
         Indebtedness may have been issued, ratably according to the aggregate
         amounts remaining unpaid on account of such Senior Indebtedness held or
         represented by each, to the extent necessary to make payment in full of
         all Senior Indebtedness remaining unpaid after giving effect to any
         concurrent payment or distribution (or provision therefor) to the
         holders of such Senior Indebtedness, before any payment or distribution
         is made of such Contract Adjustment Payments to the Holders of such
         Securities; and

                  (iii) in the event that, notwithstanding the foregoing, any
         payment by, or distribution of assets of, the Company of any kind or
         character, whether in cash, property or securities, including any such
         payment or distribution which may be payable or deliverable by reason
         of the payment of any other indebtedness of the Company being
         subordinated to the payment of Contract Adjustment Payments on the
         Purchase Contracts

                                      -37-
<PAGE>
         underlying the Securities, shall be received by the Agent or the
         Holders of any of the Securities when such payment or distribution is
         prohibited pursuant to Sections 5.2(b) through (n), such payment or
         distribution shall be paid over to the holders of such Senior
         Indebtedness or their representative or representatives or to the
         trustee or trustees under any indenture pursuant to which any
         instruments evidencing any such Senior Indebtedness may have been
         issued, ratably as aforesaid, for application to the payment of all
         Senior Indebtedness remaining unpaid until all such Senior Indebtedness
         shall have been paid in full, after giving effect to any concurrent
         payment or distribution (or provision therefor) to the holders of such
         Senior Indebtedness.

         (d) For purposes of Sections 5.2(b) through (n), the words "cash,
property or securities" shall not be deemed to include shares of stock of the
Company as reorganized or readjusted, or securities of the Company or any other
Person provided for by a plan of reorganization or readjustment, the payment of
which is subordinated at least to the extent provided in Sections 5.2(b) through
(n) with respect to such Contract Adjustment Payments on the Securities to the
payment of all Senior Indebtedness which may at the time be outstanding;
provided that (i) the indebtedness or guarantee of indebtedness, as the case may
be, that constitutes Senior Indebtedness is assumed by the Person, if any,
resulting from any such reorganization or readjustment, and (ii) the rights of
the holders of the Senior Indebtedness are not, without the consent of each such
holder adversely affected thereby, altered by such reorganization or
readjustment.

         (e) Any failure by the Company to make any payment on or perform any
other obligation under Senior Indebtedness, other than any indebtedness incurred
by the Company or assumed or guaranteed, directly or indirectly, by the Company
for money borrowed (or any deferral, renewal, extension or refunding thereof) or
any indebtedness or obligation as to which the provisions of Sections 5.2(b)
through (d) shall have been waived by the Company in the instrument or
instruments by which the Company incurred, assumed, guaranteed or otherwise
created such indebtedness or obligation, shall not be deemed a default or event
of default if (i) the Company shall be disputing its obligation to make such
payment or perform such obligation and (ii) either (A) no final judgment
relating to such dispute shall have been issued against the Company which is in
full force and effect and is not subject to further review, including a judgment
that has become final by reason of the expiration of the time within which a
party may seek further appeal or review, and (B) in the event a judgment that is
subject to further review or appeal has been issued, the Company shall in good
faith be prosecuting an appeal or other proceeding for review and a stay of
execution shall have been obtained pending such appeal or review.

         (f) Subject to the payment in full of all Senior Indebtedness, the
Holders of the Securities shall be subrogated (equally and ratably with the
holders of all obligations of the Company which by their express terms are
subordinated to Senior Indebtedness of the Company to the same extent as payment
of the Contract Adjustment Payments in respect of the Purchase Contracts
underlying the Securities is subordinated and which are entitled to like rights
of subrogation) to the rights of the holders of Senior Indebtedness to receive
payments or distributions of cash, property or securities of the Company
applicable to the Senior Indebtedness until all such Contract Adjustment
Payments owing on the Securities shall be paid in full, and as between the
Company, its creditors other than holders of such Senior Indebtedness and the
Holders, no such payment or distribution made to the holders of Senior
Indebtedness by virtue of Sections 5.2(b) through (n) that otherwise would have
been made to the Holders shall be deemed to be a payment by the Company on
account of such Senior Indebtedness, it being understood that the provisions of
Sections 5.2(b) through (n) are and are intended solely for the purpose of
defining the relative rights of the Holders, on the one hand, and the holders of
Senior Indebtedness, on the other hand.

                                      -38-
<PAGE>
         (g) Nothing contained in Sections 5.2(b) through (n) or elsewhere in
this Agreement or in the Securities is intended to or shall impair, as among the
Company, its creditors other than the holders of Senior Indebtedness and the
Holders, the obligation of the Company, which is absolute and unconditional, to
pay to the Holders such Contract Adjustment Payments on the Securities as and
when the same shall become due and payable in accordance with their terms, or is
intended to or shall affect the relative rights of the Holders and creditors of
the Company other than the holders of Senior Indebtedness, nor shall anything
herein or therein prevent the Agent or any Holder from exercising all remedies
otherwise permitted by applicable law upon default under this Agreement, subject
to the rights, if any, under these Sections 5.2(b) through (n), of the holders
of Senior Indebtedness in respect of cash, property or securities of the Company
received upon the exercise of any such remedy.

         (h) Upon payment or distribution of assets of the Company referred to
in these Sections 5.2(b) through (n), the Agent and the Holders shall be
entitled to rely upon any order or decree made by any court of competent
jurisdiction in which any such dissolution, winding up, liquidation or
reorganization proceeding affecting the affairs of the Company is pending or
upon a certificate of the trustee in bankruptcy, receiver, assignee for the
benefit of creditors, liquidating trustee or agent or other person making any
payment or distribution, delivered to the Agent or to the Holders, for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Indebtedness and other indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to these
Sections 5.2(b) through (n).

         (i) The Agent shall be entitled to rely on the delivery to it of a
written notice by a Person representing himself to be a holder of Senior
Indebtedness (or a trustee or representative on behalf of such holder) to
establish that such notice has been given by a holder of Senior Indebtedness or
a trustee or representative on behalf of any such holder or holders. In the
event that the Agent determines in good faith that further evidence is required
with respect to the right of any Person as a holder of Senior Indebtedness to
participate in any payment or distribution pursuant to Sections 5.2(b) through
(n), the Agent may request such Person to furnish evidence to the reasonable
satisfaction of the Agent as to the amount of Senior Indebtedness held by such
Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under Sections 5.2(b) through (n), and, if such evidence is not
furnished, the Agent may defer payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

         (j) Nothing contained in Sections 5.2(b) through (n) shall affect the
obligations of the Company to make, or prevent the Company from making, payment
of the Contract Adjustment Payments, except as otherwise provided in these
Sections 5.2(b) through (n).

         (k) Each Holder of Securities, by his acceptance thereof, authorizes
and directs the Agent on his, her or its behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in Sections
5.2(b) through (n) and appoints the Agent his, her or its attorney-in-fact, as
the case may be, for any and all such purposes.

         (l) The Company shall give prompt written notice to the Agent of any
fact known to the Company that would prohibit the making of any payment of
moneys to or by the Agent in respect of the Securities pursuant to the
provisions of this Section 5.2. Notwithstanding the provisions of Sections
5.2(b) through (n) or any other provisions of this Agreement, the Agent shall
not be charged with knowledge of the existence of any facts that would prohibit
the making of any payment of moneys to or by the Agent, or the taking of any
other action by the Agent, unless and until the Agent shall have received
written notice thereof mailed or delivered to a Responsible Officer of the Agent
from the

                                      -39-
<PAGE>
Company, any Holder, any paying agent or the holder or representative of any
Senior Indebtedness; provided that if at least two Business Days prior to the
date upon which by the terms hereof any such moneys may become payable for any
purpose, the Agent shall not have received with respect to such moneys the
notice provided for in this Section 5.2, then, anything herein contained to the
contrary notwithstanding, the Agent shall have full power and authority to
receive such moneys and to apply the same to the purpose for which they were
received and shall not be affected by any notice to the contrary that may be
received by it within two Business Days prior to or on or after such date.

         (m) The Agent in its individual capacity shall be entitled to all the
rights set forth in this Section 5.2 with respect to any Senior Indebtedness at
the time held by it, to the same extent as any other holder of Senior
Indebtedness and nothing in this Agreement shall deprive the Agent of any of its
rights as such holder.

         (n) No right of any present or future holder of any Senior Indebtedness
to enforce the subordination herein shall at any time or in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any noncompliance by the Company with the terms, provisions and covenants
of this Agreement, regardless of any knowledge thereof which any such holder may
have or be otherwise charged with.

         (o) Nothing in this Section 5.2 shall apply to claims of, or payments
to, the Agent under or pursuant to Section 7.7 hereof.

         With respect to the holders of Senior Indebtedness, (i) the duties and
obligations of the Agent shall be determined solely by the express provisions of
this Agreement; (ii) the Agent shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this Agreement;
(iii) no implied covenants or obligations shall be read into this Agreement
against the Agent; and (iv) the Agent shall not be deemed to be a fiduciary as
to such holders.

         Section 5.3 Deferral of Payment Dates for Contract Adjustment Payments.

         (a) The Company shall have the right, at any time prior to the Purchase
Contract Settlement Date, to defer the payment of any or all of the Contract
Adjustment Payments otherwise payable on any Payment Date, but only if the
Company shall give the Holders and the Agent written notice of its election to
defer such payment (specifying the amount to be deferred) at least ten Business
Days prior to the earlier of (i) the next succeeding Payment Date or (ii) the
date the Company is required to give notice of the Record Date or Payment Date
with respect to payment of such Contract Adjustment Payments to the NYSE or
other applicable self-regulatory organization or to Holders of the Securities,
but in any event not less than one Business Day prior to such Record Date. Any
Contract Adjustment Payments so deferred shall, to the extent permitted by law,
bear additional Contract Adjustment Payments thereon at the rate of 9% per year
(computed on the basis of a 360-day year of twelve 30-day months), compounded
quarterly up to but not including each succeeding Payment Date, until paid in
full (such deferred installments of Contract Adjustment Payments, if any,
together with the additional Contract Adjustment Payments accrued thereon, being
referred to herein as the "Deferred Contract Adjustment Payments") . Deferred
Contract Adjustment Payments, if any, shall be due on the next succeeding
Payment Date except to the extent that payment is deferred pursuant to this
Section 5.3. No Contract Adjustment Payments may be deferred to a date that is
on or after the Purchase Contract Settlement Date and no such deferral period
may end other than on a Payment Date. If the Purchase Contracts are terminated
upon the occurrence of a Termination Event, the Holder's right to receive
Contract Adjustment Payments, if any, and Deferred Contract Adjustment Payments
will terminate.

                                      -40-
<PAGE>
         (b) In the event that the Company elects to defer the payment of
Contract Adjustment Payments on the Purchase Contracts until a Payment Date
prior to the Purchase Contract Settlement Date, then all Deferred Contract
Adjustment Payments, if any, shall be payable to the registered Holders as of
the close of business on the Record Date immediately preceding such Payment
Date.

         (c) In the event that the Company elects to defer the payment of
Contract Adjustment Payments on the Purchase Contracts until the Purchase
Contract Settlement Date, each Holder will receive on the Purchase Contract
Settlement Date in lieu of a cash payment a number of shares of Common Stock (in
addition to a number of shares of Common Stock equal to the Settlement Rate)
equal to (x) the aggregate amount of Deferred Contract Adjustment Payments
payable to such Holder divided by (y) the Applicable Market Value.

         (d) No fractional shares of Common Stock will be issued by the Company
with respect to the payment of Deferred Contract Adjustment Payments on the
Purchase Contract Settlement Date. In lieu of fractional shares otherwise
issuable with respect to such payment of Deferred Contract Adjustment Payments,
the Holder will be entitled to receive an amount in cash equal to the fraction
of a share times the Applicable Market Value as provided in Section 5.11 hereof.

         (e) In the event the Company exercises its option to defer the payment
of Contract Adjustment Payments, then, until the Deferred Contract Adjustment
Payments have been paid, the Company shall not, and shall not permit its
Subsidiaries to, declare or pay dividends on, make distributions with respect
to, or redeem, purchase or acquire, or make a liquidation payment with respect
to, any of the Company's capital stock other than:

                  (i) purchases, redemptions or acquisitions of shares of
         capital stock of the Company in connection with any employment
         contract, benefit plan or other similar arrangement with or for the
         benefit of employees, officers or directors or a stock purchase or
         dividend reinvestment plan, or the satisfaction by the Company of its
         obligations pursuant to any contract or security outstanding on the
         date the Company exercises its right to defer the Contract Adjustment
         Payments;

                  (ii) as a result of a reclassification of the Company's
         capital stock or the exchange or conversion of one class or series of
         the Company's capital stock for another class or series of the
         Company's capital stock;

                  (iii) the purchase of fractional interests in shares of the
         Company's capital stock pursuant to the conversion or exchange
         provisions of such capital stock or the security being converted or
         exchanged;

                  (iv) dividends or distributions in capital stock of the
         Company (or rights to acquire capital stock) or repurchases,
         acquisitions or redemptions of capital stock in exchange for or out of
         the net cash proceeds of the sale of the Company's capital stock (or
         securities convertible into or exchangeable for shares of the Company's
         capital stock);

                  (v) redemptions, exchanges or repurchases of any rights
         outstanding under a shareholder rights plan or the declaration or
         payment thereunder of a dividend or distribution of or with respect to
         rights in the future; or

                                      -41-
<PAGE>
                  (vi) mandatory sinking fund payments with respect to any
         series of preferred stock of the Company; provided that the aggregate
         stated value of all such series outstanding at the time of such payment
         does not exceed 5% of the aggregate value of (1) the total principal
         amount of all then outstanding bonds or other securities representing
         secured indebtedness issued or assumed by the Company and (2) the
         Company's capital and surplus to be stated on the Company's books of
         account after giving effect to such payment; provided that any moneys
         deposited in to any sinking fund and not in violation of this clause
         (vi) may thereafter be applied to the purchase or redemption of such
         preferred stock in accordance with the terms of such sinking fund
         without regard to the foregoing restrictions.

         Section 5.4 Initial Remarketing and Secondary Remarketing.

         (a) Unless a Tax Event Redemption has occurred, the Company shall
engage a nationally recognized investment bank (the "Remarketing Agent")
pursuant to the Remarketing Agreement to sell the Notes (the "Initial
Remarketing") on the third Business Day immediately preceding May 16, 2005 (the
"Initial Remarketing Date"). In order to facilitate the remarketing, the Agent
shall notify, by 10:00 a.m., New York City time, on the Business Day immediately
preceding the Initial Remarketing Date, the Remarketing Agent of the aggregate
principal amount of Notes to be remarketed that are part of Corporate Units.
Concurrently, the Collateral Agent, pursuant to the terms of the Pledge
Agreement, or the Custodial Agent, pursuant to clause (c) below, will present
for remarketing such Notes (and the Separate Notes that are to be remarketed
pursuant to clause (c) below) to the Remarketing Agent. Upon receipt of such
notice from the Agent and such Notes from the Collateral Agent or Custodial
Agent, the Remarketing Agent will, on the Initial Remarketing Date, use its
reasonable best efforts to remarket such Notes on such date at a price of 100.5%
of the sum of the Treasury Portfolio Purchase Price plus the Separate Notes
Purchase Price. If the Remarketing Agent is able to remarket the Notes at a
price equal to or greater than 100.5% of the Treasury Portfolio Purchase Price
plus the Separate Notes Purchase Price (a "Successful Initial Remarketing"), the
portion of the proceeds from such Successful Initial Remarketing equal to the
Treasury Portfolio Purchase Price will be applied to purchase the Treasury
Portfolio. In addition, the Remarketing Agent may deduct as a remarketing fee
("Remarketing Fee") an amount not exceeding 25 basis points (0.25%) of the sum
of the Treasury Portfolio Purchase Price plus the Separate Notes Purchase Price
from any amount of such proceeds in excess of the Treasury Portfolio Purchase
Price plus the Separate Notes Purchase Price. With respect to Separate Notes,
any proceeds of the Initial Remarketing in excess of the Remarketing Fee or
attributable to the Separate Notes will be remitted to the Custodial Agent for
payment to the Holders of Separate Notes. With respect to Notes that are part of
Corporate Units, any proceeds in excess of those required to pay the Treasury
Portfolio Purchase Price and the Remarketing Fee with respect to such Notes will
be remitted to the Agent for payment to the Holders of the related Corporate
Units. A Corporate Unit Holder whose Notes are so remarketed will not otherwise
be responsible for the payment of any Remarketing Fee in connection therewith.
The Treasury Portfolio will be substituted for the Notes of Holders of Corporate
Units and will be pledged to the Collateral Agent to secure the Corporate Unit
Holders' obligation to pay the Purchase Price for the shares of Common Stock
under the related Purchase Contracts on the Purchase Contract Settlement Date.
Following the occurrence of a Successful Initial Remarketing, the Holders of
Corporate Units and the Collateral Agent shall have such security interests,
rights and obligations with respect to the Treasury Portfolio as the Holder of
Corporate Units and the Collateral Agent had in respect of the Notes, as the
case may be, subject to the Pledge thereof as provided in Sections 2, 3, 4, 5
and 6 of the Pledge Agreement, and any reference herein or in the Certificates
to the Notes shall be deemed to be a reference to such Treasury Portfolio and
any reference herein or in the Certificates to interest on the Notes shall be

                                      -42-
<PAGE>
deemed to be a reference to corresponding distributions on the Treasury
Portfolio. The Company may cause to be made in any Corporate Unit Certificates
thereafter to be issued such change in phraseology and form (but not in
substance) as may be appropriate to reflect the substitution of the Treasury
Portfolio for Notes as collateral.

         If, (i) despite using its reasonable best efforts, the Remarketing
Agent cannot remarket the related Notes (other than to the Company) at a price
equal to or greater than 100.5% of the sum of the Treasury Portfolio Purchase
Price plus the Separate Notes Purchase Price, or (ii) the Initial Remarketing
has not occurred because of a condition precedent to the remarketing has not
been fulfilled, the remarketing will be deemed to have failed (a "Failed Initial
Remarketing"). The Company will cause a notice of a Failed Initial Remarketing
to be published on the second Business Day immediately preceding May 16, 2005 in
an Authorized Newspaper. The Notes will continue to be a component of Corporate
Units, and another remarketing may be attempted as described in Section 5.4(b)

         (b) In the event of a Failed Initial Remarketing and unless a Tax Event
Redemption has occurred, the Company shall engage the Remarketing Agent pursuant
to the Remarketing Agreement to sell the Notes (the "Secondary Remarketing") on
the third Business Day immediately preceding July 1, 2005 (the "Secondary
Remarketing Date"). In order to facilitate the remarketing, the Agent shall
notify, by 10:00 a.m., New York City time, on the Business Day immediately
preceding the Secondary Remarketing Date, the Remarketing Agent of the aggregate
principal amount of Notes to be remarketed that are part of Corporate Units.
Concurrently, the Collateral Agent, pursuant to the terms of the Pledge
Agreement, or the Custodial Agent, pursuant to clause (c) below, will present
for remarketing such Notes (and the Separate Notes that are to be remarketed
pursuant to clause (c) below) to the Remarketing Agent. Upon receipt of such
notice from the Agent and such Notes from the Collateral Agent or Custodial
Agent, the Remarketing Agent will, on the Secondary Remarketing Date, use its
reasonable best efforts to remarket such Notes on such date at a price of 100.5%
of the sum of the Treasury Portfolio Purchase Price plus the Separate Notes
Purchase Price. If the Remarketing Agent is able to remarket the Notes at a
price equal to or greater than 100.5% of the Treasury Portfolio Purchase Price
plus the Separate Notes Purchase Price (a "Successful Secondary Remarketing"),
the portion of the proceeds from such Successful Secondary Remarketing equal to
the Treasury Portfolio Purchase Price will be applied to purchase the Treasury
Portfolio. In addition, the Remarketing Agent may deduct as the Remarketing Fee
an amount not exceeding 25 basis points (0.25%) of the sum of the Treasury
Portfolio Purchase Price plus the Separate Notes Purchase Price from any amount
of such proceeds in excess of the Treasury Portfolio Purchase Price plus the
Separate Notes Price. With respect to Separate Notes, any proceeds of the
Secondary Remarketing in excess of the Remarketing or attributable to the
Separate Notes will be remitted to the Custodial Agent for payment to the
Holders of Separate Notes. With respect to Notes that are part of Corporate
Units, any proceeds in excess of those required to pay the Treasury Portfolio
Purchase Price and the Remarketing Fee with respect to such Notes will be
remitted to the Agent for payment to the Holders of the related Corporate Units.
A Corporate Unit Holder whose Notes are so remarketed will not otherwise be
responsible for the payment of any Remarketing Fee in connection therewith. The
Treasury Portfolio will be substituted for the Notes of Holders of Corporate
Units and will be pledged to the Collateral Agent to secure the Corporate Unit
Holders' obligation to pay the Purchase Price for the shares of Common Stock
under the related Purchase Contracts on the Purchase Contract Settlement Date.
Following the occurrence of a Successful Secondary Remarketing, the Holders of
Corporate Units and the Collateral Agent shall have such security interests,
rights and obligations with respect to the Treasury Portfolio as the Holder of
Corporate Units and the Collateral Agent had in respect of the Notes, as the
case may be, subject to the Pledge thereof as provided in Sections 2, 3, 4, 5
and 6 of the Pledge Agreement, and any reference herein or in the Certificates
to the Notes shall be deemed to be a reference to such Treasury Portfolio and
any reference herein or in the Certificates to interest on the Notes

                                      -43-
<PAGE>
shall be deemed to be a reference to corresponding distributions on the Treasury
Portfolio. The Company may cause to be made in any Corporate Unit Certificates
thereafter to be issued such change in phraseology and form (but not in
substance) as may be appropriate to reflect the substitution of the Treasury
Portfolio for Notes as collateral.

         If, (i) despite using its reasonable best efforts, the Remarketing
Agent cannot remarket the related Notes (other than to the Company) at a price
equal to or greater than 100.5% of the sum of the Treasury Portfolio Purchase
Price plus the Separate Notes Purchase Price, or (ii) the Secondary Remarketing
has not occurred because of a condition precedent to the remarketing has not
been fulfilled, the remarketing will be deemed to have failed (a "Failed
Secondary Remarketing"). The Company will cause a notice of a Failed Secondary
Remarketing to be published on the second Business Day immediately preceding
July 1, 2005 in an Authorized Newspaper. The Notes will continue to be a
component of Corporate Units, and another remarketing may be attempted as
described in Section 5.5(b).

         (c) A Holder of a Note that is no longer part of a Corporate Unit may
elect to have such Note remarketed in the Initial Remarketing and, upon a Failed
Initial Remarketing, the Secondary Remarketing. A Holder making such an election
must notify the Custodial Agent and deliver such Notes to the Custodial Agent
prior to 11:00 a.m. (New York City time) on the second Business Day immediately
preceding the Initial Remarketing Date or the Secondary Remarketing Date, as
applicable, of the aggregate principal amount of Separate Notes that are to be
remarketed. Any such notice will be irrevocable and may not be conditioned upon
the level at which the Reset Rate is established in the Remarketing. By 11:00
a.m. (New York City time) on the Business Day immediately preceding the Initial
Remarketing Date or Secondary Remarketing Date, as applicable, the Custodial
Agent shall cause such Separate Notes to be presented to the Remarketing Agent
for the Initial Remarketing or the Secondary Remarketing, as the case may be.

         (d) Not later than seven calendar days nor more than 15 calendar days
prior to the Initial Remarketing Date and, upon a Failed Initial Remarketing,
the Secondary Remarketing Date, the Company shall notify the Agent and shall
request that the Clearing Agency notify the Beneficial Owners or Clearing Agency
participants holding securities of the procedures followed in the Initial
Remarketing or the Secondary Remarketing, as the case may be.

         (e) If required by applicable law, the Company agrees to endeavor to
ensure that a registration statement with regard to the full amount of the Notes
to be remarketed in the Initial Remarketing and, upon a Failed Initial
Remarketing, the Secondary Remarketing shall be effective with the Securities
and Exchange Commission in a form that will enable the Remarketing Agent to rely
on it in connection with the Initial Remarketing and the Secondary Remarketing.

         Section 5.5 Payment of Purchase Price, Cash Settlement, Final
                     Remarketing.

         (a)      (i) Unless a Tax Event Redemption, Successful Initial
         Remarketing, Successful Secondary Remarketing, Termination Event or
         Early Settlement has occurred, each Holder of a Corporate Unit may pay
         in cash ("Cash Settlement") the Purchase Price for the shares of Common
         Stock to be purchased pursuant to a Purchase Contract if such Holder
         notifies the Agent by use of a notice in substantially the form of
         Exhibit E hereto of its intention to make a Cash Settlement. Such
         notice shall be made on or prior to 5:00 p.m., New York City time, on
         the fifth Business Day immediately preceding the Purchase Contract
         Settlement Date. The Agent shall promptly notify the Collateral Agent
         of the receipt of such a notice from a Holder intending to make a Cash
         Settlement.

                                      -44-
<PAGE>
                  (ii) A Holder of a Corporate Unit who has so notified the
         Agent of its intention to make a Cash Settlement is required to pay the
         Purchase Price to the Collateral Agent prior to 11:00 a.m., New York
         City time, on the Business Day immediately preceding the Purchase
         Contract Settlement Date in lawful money of the United States by
         certified or cashiers' check or wire transfer, in each case payable to
         or upon the order of the Company. Any cash received by the Collateral
         Agent will be invested promptly by the Collateral Agent in Permitted
         Investments and paid to the Company on the Purchase Contract Settlement
         Date in settlement of the Purchase Contract in accordance with the
         terms of this Agreement and the Pledge Agreement. Any funds received by
         the Collateral Agent in respect of the investment earnings from the
         investment in such Permitted Investments will be distributed to the
         Agent when received for payment to the Holder.

                  (iii) If a Holder of a Corporate Unit fails to notify the
         Agent of its intention to make a Cash Settlement in accordance with
         clause (i) above, such Holder shall be deemed to have consented to the
         disposition of the pledged Notes pursuant to the Final Remarketing as
         described in Section 5.5(b) below. If a Holder of a Corporate Unit does
         notify the Agent as provided in clause (i) above of its intention to
         pay the Purchase Price in cash, but fails to make such payment as
         required by clause (ii) above, such failure shall constitute a default;
         however, the Notes of such a Holder will not be remarketed but instead
         the Collateral Agent, for the benefit of the Company, will exercise its
         rights as a secured party with respect to such Notes, including but not
         limited to those rights specified in Section 5.5(d) below.

         (b)      (i) Unless a Tax Event Redemption, a Successful Initial
         Remarketing or a Successful Secondary Remarketing has occurred, the
         Notes of Corporate Unit Holders who have not notified the Agent of
         their intention to effect a Cash Settlement as provided in clause (i)
         of Section 5.5(a) and the Separate Notes that are to be remarketed
         pursuant to clause (ii) below will be sold by the Remarketing Agent
         (the "Final Remarketing") on the third Business Day immediately
         preceding the Purchase Contract Settlement Date (the "Final Remarketing
         Date"). The Agent shall notify, by 10:00 a.m., New York City time, on
         the Business Day immediately preceding the Final Remarketing Date, the
         Remarketing Agent of the aggregate principal amount of Notes that are
         part of Corporate Units to be remarketed. Concurrently, the Collateral
         Agent, pursuant to the terms of the Pledge Agreement, or the Custodial
         Agent pursuant to clause (ii) below, will present for remarketing such
         Notes to the Remarketing Agent. Upon receipt of such notice from the
         Agent and such Notes (and the Separate Notes that are to be remarketed
         pursuant to clause (ii) below) from the Collateral Agent or Custodial
         Agent, the Remarketing Agent will, on the Final Remarketing Date, use
         its reasonable best efforts to remarket such Notes on such date at a
         price of 100.5% of the sum of the aggregate principal amount of such
         Notes plus the Separate Notes Purchase Price. If the Remarketing Agent
         is able to remarket the Notes at a price equal to or greater than 100%
         of the sum of the aggregate principal amount of Notes plus the Separate
         Notes Purchase Price (a "Successful Final Remarketing"), the
         Remarketing Agent will remit the entire amount of the proceeds from
         such Successful Final Remarketing to the Collateral Agent; provided
         that the Remarketing Agent may deduct as the Remarketing Fee an amount
         not exceeding 25 basis points (0.25%) of the sum of the aggregate
         principal amount of the remarketed Notes plus the Separate Notes
         Purchase Price from any amount of the proceeds of a Successful Final
         Remarketing in excess of the sum of the aggregate principal amount of

                                      -45-
<PAGE>
         the remarketed Notes plus the Separate Notes Purchase Price. The
         portion of the entire proceeds which is equal to the aggregate
         principal amount of the remarketed Notes will automatically be applied
         by the Collateral Agent, in accordance with the Pledge Agreement, to
         satisfy in full such Corporate Unit Holders' obligations to pay the
         Purchase Price for the shares of Common Stock under the related
         Purchase Contracts on the Purchase Contract Settlement Date. With
         respect to the Separate Notes, any proceeds of the Final Remarketing in
         excess of the Remarketing Fee or attributable to the Separate Notes
         will be remitted to the Custodial Agent for payment to the Holders of
         Separate Notes. With respect to Notes that are part of Corporate Units,
         any proceeds in excess of those required to pay the Purchase Price for
         the Purchase Contracts related to such Corporate Units and the
         Remarketing Fee will be remitted to the Agent for payment to the
         Holders of such Corporate Units. A Corporate Unit Holder whose Notes
         are so remarketed will not otherwise be responsible with respect to
         such Notes for the payment of any Remarketing Fee in connection
         therewith. If, (i) despite using its reasonable best efforts, the
         Remarketing Agent cannot remarket the Notes (other than to the Company)
         at a price not less than 100% of the sum of the aggregate principal
         amount of the Notes plus the Separate Notes Purchase Price, or (ii) the
         remarketing has not occurred because of a condition precedent to the
         remarketing has not been fulfilled, the remarketing will be deemed to
         have failed (a "Failed Final Remarketing") and the holder of the Notes
         will have a right to put the Notes to the Company as described in
         clause (c) below or, in accordance with the terms of the Pledge
         Agreement, the Collateral Agent for the benefit of the Company will
         exercise its rights as a secured party with respect to such Notes,
         including those actions specified in clause (d) below. The Company will
         cause a notice of such Failed Final Remarketing to be published on the
         second Business Day immediately preceding the Purchase Contract
         Settlement Date in an Authorized Newspaper.

                  (ii) A Holder of a Note that is no longer part of a Corporate
         Unit may elect to have such Note remarketed in the Final Remarketing. A
         Holder making such an election must notify the Custodial Agent and
         deliver such Notes to the Custodial Agent prior to 11:00 a.m. (New York
         City time) on the second Business Day immediately preceding the Final
         Remarketing Date of the aggregate principal amount of Notes that are
         not part of Corporate Units to be remarketed. Any such notice will be
         irrevocable and may not be conditioned upon the level at which the
         Reset Rate is established in the Remarketing. By 11:00 a.m. (New York
         City time) on the Business Day immediately preceding the Final
         Remarketing Date, the Custodial Agent shall cause such Notes to be
         presented to the Remarketing Agent for Final Remarketing.

                  (iii) Not later than seven calendar days nor more than 15
         calendar days prior to the Final Remarketing Date, the Company shall
         notify the Agent, and shall request that the Clearing Agency notify the
         Beneficial Owners or Clearing Agency participants holding securities of
         the procedures to be followed in the Final Remarketing.

                  (iv) If required by applicable law, the Company agrees to
         endeavor to ensure that a registration statement with regard to the
         full amount of the Notes to be remarketed in the Final Remarketing
         shall be effective with the Securities and Exchange Commission in a
         form that will enable the Remarketing Agent to rely on it in connection
         with the Remarketing.

                                      -46-
<PAGE>
         (c) If a Failed Final Remarketing has occurred, each holder of the
Notes shall have the right ("Put Option") to put such Notes to the Company on
August 16, 2005, or if such date is not a Business Day, on the next succeeding
Business Day (the "Put Option Settlement Date") at a repayment price equal to
the principal amount of the Notes plus an amount equal to any accrued and unpaid
interest thereon to the date of payment. To exercise the Put Option, the
Indenture Trustee must receive from the holder of the Notes, on or prior to 5:00
p.m., New York City time, on the second Business Day immediately preceding the
Put Option Settlement Date, at its Corporate Trust Office, or at an office or
agency maintained by the Company in the Borough of Manhattan, The City of New
York as contemplated by Section 1002 of the Indenture, the Notes to be
repurchased with the form on the reverse of or otherwise accompanying such Notes
duly completed. Any such notice received by the Indenture Trustee shall be
irrevocable. All questions as to the validity, eligibility (including time of
receipt) and acceptance of the Notes for repayment shall be determined by the
Company, whose determination shall be final and binding. Holders of Notes will
be notified not later than seven nor more than 15 calendar days prior to the
third Business Day immediately preceding August 16, 2005 of the procedures that
must be followed if such holders wish to exercise their Put Option. The payment
of the repayment price in respect of the Notes shall be made no later than 12:00
noon, New York City time, on the Put Option Settlement Date. If a Holder has
exercised the Put Option but has not otherwise settled the Purchase Contracts in
cash by the close of business on the Business Day immediately prior to the
Purchase Contract Settlement Date, the put price will be applied by the
Collateral Agent, in accordance with the terms of the Pledge Agreement, to
satisfy in full the obligations of the Holder to pay the Purchase Price for the
shares of Common Stock under the related Purchase Contracts on the Purchase
Contract Settlement Date.

         (d) With respect to any Notes beneficially owned by Holders who have
elected Cash Settlement but failed to deliver cash as required in clause (a)(ii)
above, or with respect to Notes which are subject to a Failed Final Remarketing,
and for which the Put Option was not exercised, the Collateral Agent for the
benefit of the Company reserves all of its rights as a secured party with
respect thereto and, subject to applicable law and clause (i) below, may, among
other things, permit the Company to (i) retain and cancel the Notes or (ii)
cause the Notes to be sold in one or more public or private sales, in either
case, in full satisfaction of the Holders' obligations under the Purchase
Contracts.

         (e) Unless a Termination Event or an Early Settlement has occurred, the
Purchase Contract underlying each Treasury Unit and, if a Tax Event Redemption,
a Successful Initial Remarketing or a Successful Secondary Remarketing has
occurred, each Corporate Unit will be settled with the Proceeds at maturity of
the Treasury Security or the Applicable Ownership Interest (as defined in clause
(i) of the definition of such term) in the Treasury Portfolio, as applicable.
Upon receipt of such Proceeds, the Collateral Agent will invest the Proceeds
promptly in Permitted Investments and pay the Proceeds to the Company on the
Purchase Contract Settlement Date in accordance with the terms of this Agreement
and the Pledge Agreement. Any such Proceeds received by the Collateral Agent in
excess of the Purchase Price and any funds received by the Collateral Agent in
respect of the investment earnings from the investment in such Permitted
Investments will be distributed to the Agent when received for payment to the
Holders.

         (f) Any distribution to Holders of excess funds and interest described
above, shall be payable at the New York Office maintained for that purpose or,
at the option of the Holder, by check mailed to the address of the Person
entitled thereto at such address as it appears on the Register, or, at the
option of the Company, by wire transfer to the bank account designated by such
Holders in writing, such payments to be made to the same Persons entitled to
receive Common Stock with respect to the Purchase Contracts referred to in
clause (d) above.

                                      -47-
<PAGE>
         (g) Unless a Holder settles the underlying Purchase Contract through
Early Settlement in the manner described in Section 5.10 hereof, the Company
shall not be obligated to issue any shares of Common Stock in respect of a
Purchase Contract or deliver any certificate therefor to the Holder unless it
shall have received payment in full of the Purchase Price for the shares of
Common Stock to be purchased thereunder in the manner set forth in this Section
5.5.

         (h) Upon Cash Settlement of any Purchase Contract, (i) the Collateral
Agent will in accordance with the terms of the Pledge Agreement cause the
pledged Notes underlying the relevant Security to be released from the Pledge by
the Collateral Agent free and clear of any security interest of the Company and
transferred to the Agent for delivery to the Holder thereof or its designee as
soon as practicable and (ii) subject to the receipt thereof from the Collateral
Agent, the Agent shall, by book-entry transfer, or other appropriate procedures,
in accordance with instructions provided by the Holder thereof, transfer such
Notes (or, if no such instructions are given to the Agent by the Holder, the
Agent shall hold such Notes and any distributions thereon in the name of the
Agent or its nominee in trust for the benefit of such Holder pending receipt of
such instructions).

         (i) The obligations of the Holders to pay the Purchase Price are
non-recourse obligations and are payable solely out of any Cash Settlement or
the Proceeds of any Collateral pledged to secure the obligations of the Holders
and in no event will Holders be liable for any deficiency between the Proceeds
of Collateral and the Purchase Price.

         Section 5.6 Issuance of Shares of Common Stock.

         Unless a Termination Event or an Early Settlement shall have occurred,
on the Purchase Contract Settlement Date, upon the Company's receipt of payment
in full of the Purchase Price for the shares of Common Stock purchased by the
Holders pursuant to the foregoing provisions of this Article and subject to
Sections 5.7(b) and 5.11 hereof, the Company shall issue and deposit with the
Agent, for the benefit of the Holders of the Outstanding Securities, one or more
certificates representing newly issued shares of Common Stock registered in the
name of the Agent (or its nominee) as custodian for the Holders (such
certificates for shares of Common Stock, together with any dividends or
distributions for which both a record date and payment date for such dividend or
distribution has occurred on or after the Purchase Contract Settlement Date,
being hereinafter referred to as the "Purchase Contract Settlement Fund") to
which the Holders are entitled hereunder. Subject to the foregoing, upon
surrender of a Certificate to the Agent on or after the Purchase Contract
Settlement Date, together with settlement instructions thereon duly completed
and executed, the Holder of such Certificate shall be entitled to receive in
exchange therefor a certificate representing that number of whole shares of
Common Stock which such Holder is entitled to receive pursuant to the provisions
of this Article V (after taking into account all Securities then held by such
Holder) together with cash in lieu of fractional shares as provided in Section
5.11 hereof and any dividends or distributions with respect to such shares
constituting part of the Purchase Contract Settlement Fund, but without any
interest thereon, and the Certificate so surrendered shall forthwith be
cancelled. Such shares shall be registered in the name of the Holder or the
Holder's designee as specified in the settlement instructions provided by the
Holder to the Agent. If any shares of Common Stock issued in respect of a
Purchase Contract are to be registered to a Person other than the Person in
whose name the Certificate evidencing such Purchase Contract is registered, no
such registration shall be made unless the Person requesting such registration
has paid any transfer and other taxes required by reason of such registration in
a name other than that of the registered Holder of the Certificate evidencing
such Purchase Contract or has established to the satisfaction of the Company
that such tax either has been paid or is not payable.

                                      -48-
<PAGE>
         Section 5.7 Adjustment of Settlement Rate.

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

         (1) In case the Company shall pay or make a stock dividend or other
distribution on the Common Stock in shares of Common Stock, the Settlement Rate,
as in effect at the opening of business on the day following the date fixed for
the determination of stockholders entitled to receive such dividend or other
distribution shall be increased by dividing such Settlement Rate by a fraction
of which (i) the numerator shall be the number of shares of Common Stock
outstanding at the close of business on the date fixed for such determination
and (ii) the denominator shall be the sum of such number of shares and the total
number of shares constituting such dividend or other distribution, such increase
to become effective immediately after the opening of business on the day
following the date fixed for such determination. For the purposes of this clause
(1), the number of shares of Common Stock at any time outstanding shall not
include shares held in the treasury of the Company but shall include any shares
issuable in respect of any share certificates issued in lieu of fractions of
shares of Common Stock. The Company shall not pay any stock dividend or make any
distribution on shares of Common Stock held in the treasury of the Company.

         (2) In case the Company shall issue rights, options or warrants, other
than pursuant to any dividend reinvestment plan or share purchase plan, to all
holders of its Common Stock (not being available on an equivalent basis to
Holders of the Securities upon settlement of the Purchase Contracts underlying
such Securities) entitling them, for a period expiring within 45 days after the
record date for the determination of stockholders entitled to receive such
rights, options or warrants, to subscribe for or purchase shares of Common Stock
at a price per share less than the Current Market Price per share of the Common
Stock on the date fixed for the determination of stockholders entitled to
receive such rights, options or warrants (other than pursuant to a dividend
reinvestment plan or share purchase plan), the Settlement Rate in effect at the
opening of business on the day following the date fixed for such determination
shall be increased by dividing such Settlement Rate by a fraction of which (i)
the numerator shall be the number of shares of Common Stock outstanding at the
close of business on the date fixed for such determination plus the number of
shares of Common Stock which the aggregate offering price of the total number of
shares of Common Stock so offered for subscription or purchase would purchase at
such Current Market Price and (ii) the denominator shall be the number of shares
of Common Stock outstanding at the close of business on the date fixed for such
determination plus the number of shares of Common Stock so offered for
subscription or purchase, such increase to become effective immediately after
the opening of business on the day following the date fixed for such
determination. For purposes of this clause (2), the number of shares of Common
Stock at any time outstanding shall not include shares held in the treasury of
the Company but shall include any shares issuable in respect of any share
certificates issued in lieu of fractions of shares of Common Stock. The Company
shall not issue any such rights, options or warrants in respect of shares of
Common Stock held in the treasury of the Company.

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

                                      -49-
<PAGE>
be, to become effective immediately after the opening of business on the day
following the day upon which such subdivision, split or combination becomes
effective.

         (4) In case the Company shall, by dividend or otherwise, distribute to
all holders of its Common Stock evidences of its indebtedness, shares of capital
stock, securities, cash or other property (but excluding any rights or warrants
referred to in clause (2) of this Section 5.7(a), any dividend or distribution
paid exclusively in cash, and any dividend or distribution referred to in clause
(1) of this Section 5.7(a)), the Settlement Rate shall be increased so that the
same shall equal the rate determined by dividing the Settlement Rate in effect
immediately prior to the close of business on the date fixed for the
determination of stockholders entitled to receive such distribution by a
fraction of which (i) the numerator shall be the Current Market Price per share
of the Common Stock on the date fixed for such determination less the then fair
market value (as determined by the Board of Directors, whose determination shall
be conclusive and described in a Board Resolution filed with the Agent) on such
date of the portion of the evidences of indebtedness, shares of capital stock,
securities, cash or other property so distributed applicable to one share of
Common Stock and (ii) the denominator shall be such Current Market Price per
share of Common Stock, such adjustment to become effective immediately prior to
the opening of business on the day following the date fixed for the
determination of stockholders entitled to receive such distribution. In any case
in which this clause (4) is applicable, clauses (1) and (2) of this Section
5.7(a) shall not be applicable.

         (5) In case the Company shall, (I) by dividend or otherwise, distribute
to all holders of its Common Stock cash (excluding (i) regular quarterly cash
distributions, (ii) any cash that is distributed in a Reorganization Event to
which Section 5.7(b) applies or (iii) cash that is distributed as part of a
distribution referred to in clause (4) of this Section 5.7(a)) in an aggregate
amount that, combined together with (II) the aggregate amount of any other
distributions to all holders of its Common Stock made exclusively in cash
(excluding regular quarterly cash distributions) within the 12 months preceding
the date of payment of such distribution and in respect of which no adjustment
pursuant to this clause (5) or clause (6) of this Section 5.7(a) has been made
and (III) the aggregate of any cash plus the fair market value, as of the
expiration of the applicable tender or exchange offer referred to below (as
determined by the Board of Directors, whose determination shall be conclusive
and described in a Board Resolution), of consideration payable in respect of any
tender or exchange offer (other than consideration payable in respect of any
odd-lot tender offer) by the Company or any of its Subsidiaries for all or any
portion of the Common Stock concluded within the 12 months preceding the date of
payment of the distribution described in clause (I) above and in respect of
which no adjustment pursuant to this clause (5) or clause (6) of this Section
5.7(a) has been made, exceeds 5% of the product of the Current Market Price per
share of the Common Stock on the date for the determination of holders of shares
of Common Stock entitled to receive such distribution times the number of shares
of Common Stock outstanding on such date, then, and in each such case,
immediately after the close of business on such date for determination, the
Settlement Rate shall be increased so that the same shall equal the rate
determined by dividing the Settlement Rate in effect immediately prior to the
close of business on the date fixed for determination of the stockholders
entitled to receive such distribution by a fraction (i) the numerator of which
shall be equal to the Current Market Price per share of the Common Stock on the
date fixed for such determination less an amount equal to the quotient of (x)
the combined amount distributed or payable in the transactions described in
clauses (I), (II) and (III) above and (y) the number of shares of Common Stock
outstanding on such date for determination and (ii) the denominator of which
shall be equal

                                      -50-
<PAGE>
to the Current Market Price per share of the Common Stock on the date fixed for
such determination.

         (6) In case (I) a tender or exchange offer made by the Company or any
Subsidiary of the Company for all or any portion of the Common Stock shall
expire and such tender or exchange offer (as amended upon the expiration
thereof) shall require the payment to stockholders (based on the acceptance (up
to any maximum specified in the terms of the tender or exchange offer) of
Purchased Shares) of an aggregate consideration having a fair market value (as
determined by the Board of Directors, whose determination shall be conclusive
and described in a Board Resolution) that combined together with (II) the
aggregate of the cash plus the fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a Board
Resolution), as of the expiration of such tender or exchange offer, of
consideration payable in respect of any other tender or exchange offer (other
than consideration payable in respect of any odd-lot tender offer) by the
Company or any Subsidiary of the Company for all or any portion of the Common
Stock expiring within the 12 months preceding the expiration of such tender or
exchange offer and in respect of which no adjustment pursuant to clause (5) of
this Section 5.7(a) or this clause (6) has been made and (III) the aggregate
amount of any distributions (other than regular quarterly cash distributions) to
all holders of the Company's Common Stock made exclusively in cash within the 12
months preceding the expiration of such tender or exchange offer and in respect
of which no adjustment pursuant to clause (5) of this Section 5.7(a) or this
clause (6) has been made, exceeds 5% of the product of the Current Market Price
per share of the Common Stock as of the last time (the "Expiration Time")
tenders could have been made pursuant to such tender or exchange offer (as it
may be amended) times the number of shares of Common Stock outstanding
(including any tendered shares) on the Expiration Time, then, and in each such
case, immediately prior to the opening of business on the day after the date of
the Expiration Time, the Settlement Rate shall be adjusted so that the same
shall equal the rate determined by dividing the Settlement Rate immediately
prior to the close of business as of the Expiration Time by a fraction (i) the
numerator of which shall be equal to (A) the product of (i) the Current Market
Price per share of the Common Stock as of the Expiration Time and (ii) the
number of shares of Common Stock outstanding (including any tendered shares) as
of the Expiration Time less (B) the amount of cash plus the fair market value
(determined as aforesaid) of the aggregate consideration payable to stockholders
based on the transactions described in clauses (I), (II) and (III) above
(assuming in the case of clause (I) the acceptance, up to any maximum specified
in the terms of the tender or exchange offer, of Purchased Shares), and (ii) the
denominator of which shall be equal to the product of (A) the Current Market
Price per share of the Common Stock as of the Expiration Time and (B) the number
of shares of Common Stock outstanding (including any tendered shares) as of the
Expiration Time less the number of all shares validly tendered and not withdrawn
as of the Expiration Time (the shares deemed so accepted, up to any such
maximum, being referred to as the "Purchased Shares").

         (7) The reclassification of Common Stock into securities including
securities other than Common Stock (other than any reclassification upon a
Reorganization Event to which Section 5.7(b) applies) shall be deemed to involve
(a) a distribution of such securities other than Common Stock to all holders of
Common Stock (and the effective date of such reclassification shall be deemed to
be "the date fixed for the determination of stockholders entitled to receive
such distribution" and the "date fixed for such determination" within the
meaning of clause (4) of this Section 5.7(a)), and (b) a subdivision, split or
combination, as the case may be, of the number of shares of Common Stock
outstanding immediately prior to such reclassification into the number of shares
of Common Stock outstanding immediately thereafter (and the effective date of

                                      -51-
<PAGE>
such reclassification shall be deemed to be "the day upon which such subdivision
or split becomes effective" or "the day upon which such combination becomes
effective", as the case may be, and "the day upon which such subdivision, split
or combination becomes effective" within the meaning of clause (3) of this
Section 5.7(a)).

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

         (9) All adjustments to the Settlement Rate shall be calculated to the
nearest 1/10,000th of a share of Common Stock (or if there is not a nearest
1/10,000th of a share to the next lower 1/10,000th of a share). No adjustment in
the Settlement Rate shall be required unless such adjustment would require an
increase or decrease of at least one percent therein; provided that any
adjustments which by reason of this clause are not required to be made shall be
carried forward and taken into account in any subsequent adjustment. If an
adjustment is made to the Settlement Rate pursuant to clause (1), (2), (3), (4),
(5), (6), (7) or (10) of this Section 5.7(a), an adjustment shall also be made
to the Applicable Market Value solely to determine which of clauses (a), (b) or
(c) of the definition of Settlement Rate in Section 5.1 will apply on the
Purchase Contract Settlement Date. Such adjustment shall be made by multiplying
the Applicable Market Value by a fraction of which the numerator shall be the
Settlement Rate immediately after such adjustment pursuant to clause (1), (2),
(3), (4), (5), (6), (7) or (10) of this Section 5.7(a) and the denominator shall
be the Settlement Rate immediately before such adjustment; provided that if such
adjustment to the Settlement Rate is required to be made pursuant to the
occurrence of any of the events contemplated by clause (1), (2), (3), (4), (5),
(7) or (10) of this Section 5.7(a) during the period taken into consideration
for determining the Applicable Market Value, appropriate and customary
adjustments shall be made to the Settlement Rate.

         (10) The Company may make such increases in the Settlement Rate, in
addition to those required by this Section 5.7(a), it considers to be advisable
in order to avoid or diminish any income tax to any holders of shares of Common
Stock resulting from any dividend or distribution of capital stock or issuance
of rights or warrants to purchase or subscribe for capital stock or from any
event treated as such for income tax purposes or for any other reasons.

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

         (1)      In the event of:

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

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

                                      -52-
<PAGE>
                  (iii) any statutory exchange of securities of the Company with
         another Person (other than in connection with a merger or acquisition)
         or

                  (iv) any liquidation, dissolution or winding up of the Company
         other than as a result of or after the occurrence of a Termination
         Event (any such event described in clauses (i) to (iv) above, a
         "Reorganization Event"), the Settlement Rate will be adjusted to
         provide that each Holder of Securities will receive on the Purchase
         Contract Settlement Date with respect to each Purchase Contract forming
         a part thereof (or upon any Early Settlement pursuant to clause (2) of
         Section 5.7(b)), the kind and amount of securities, cash and other
         property receivable upon such Reorganization Event (without any
         interest thereon, and without any right to dividends or distribution
         thereon which have a record date that is prior to the Purchase Contract
         Settlement Date) by a Holder of the number of shares of Common Stock
         issuable on account of each Purchase Contract if the Purchase Contract
         Settlement Date had occurred immediately prior to such Reorganization
         Event. The adjustment described in the preceding sentence shall apply
         only to a Holder of Common Stock who is not a Person with which the
         Company consolidated or into which the Company merged or which merged
         into the Company or to which such sale or transfer was made, as the
         case may be (any such Person, a "Constituent Person"), or an Affiliate
         of a Constituent Person to the extent such Reorganization Event
         provides for different treatment of Common Stock held by Affiliates of
         the Company and non-affiliates and such Holder failed to exercise its
         rights of election, if any, as to the kind or amount of securities,
         cash and other property receivable upon such Reorganization Event
         (provided that if the kind or amount of securities, cash and other
         property receivable upon such Reorganization Event is not the same for
         each share of Common Stock held immediately prior to such
         Reorganization Event by other than a Constituent Person or an Affiliate
         thereof and in respect of which such rights of election shall not have
         been exercised ("non-electing share"), then for the purpose of this
         Section 5.7(b) the kind and amount of securities, cash and other
         property receivable upon such Reorganization Event by each non-electing
         share shall be deemed to be the kind and amount so receivable per share
         by the non-electing shares).

         In the event of such a Reorganization Event, the Person formed by such
consolidation, merger or exchange or the Person which acquires or leases the
assets of the Company or, in the event of a liquidation or dissolution of the
Company, the Company or a liquidating trust created in connection therewith,
shall execute and deliver to the Agent an agreement supplemental hereto
providing that the Holders of each Outstanding Security shall have the rights
provided by this Section 5.7. Such supplemental agreement shall provide for
adjustments which, for events subsequent to the effective date of such
supplemental agreement, shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Section 5.7(b). The above provisions of
this Section 5.7(b) shall similarly apply to successive Reorganization Events.

         (2) In the event of a consolidation or merger in which (i) the Company
merges with or into another Person, (ii) there is any reclassification,
conversion, exchange or cancellation of outstanding shares of Common Stock, and
(iii) 30% or more of the total consideration paid to the Company's shareholders
for the outstanding shares of Common Stock consists of cash or cash equivalents
(a "Cash Merger"), then a Holder of a Security may settle his Purchase Contract
for cash in the manner described in Section 5.10 hereof, mutatis mutandis, at
the applicable Settlement Rate in effect immediately prior to the Cash Merger.

                                      -53-
<PAGE>
         Within five Business Days after the date of the consummation of a Cash
Merger (the "Cash Merger Date"), the Company shall provide written notice to
Holders of Securities of such consummation (the "Cash Merger Notice"), which
shall specify the deadline for submitting a notice of Early Settlement pursuant
to this clause (2), the applicable Early Settlement Date, the applicable
Settlement Rate in effect immediately prior to the Cash Merger and the amount
(per share of Common Stock) of cash, securities and other consideration
receivable by the Holder upon settlement of each Purchase Contract as adjusted
pursuant to Section 5.7(b)(1).

         In this clause (2), the tenth Business Day after the date the Cash
Merger Notice is provided to the Holders by the Company shall be the applicable
Early Settlement Date and the deadline for submitting the notice to settle early
and the related cash payment of the Purchase Price shall be 5:00 p.m. (New York
City time) on the ninth Business Day after the date the Cash Merger Notice is
provided to the Holders by the Company.

         Treasury Unit Holders may only effect Early Settlement pursuant to this
clause (2) in integral multiples of 20 Purchase Contracts. Other than the
provisions relating to timing of notice and settlement, which shall be as set
forth above, the provisions of Section 5.1 shall apply with respect to an Early
Settlement following a Cash Merger pursuant to this clause (2).

         Notwithstanding the foregoing, no Early Settlement will be permitted
pursuant to this clause (2) unless, at the time such Early Settlement is
effected, there is an effective registration statement with respect to the
securities to be delivered in connection with such Early Settlement, if such a
registration statement is required (in the view of counsel, which need not be in
the form of a written opinion, for either the Company or the Agent) under the
Securities Act. If such a registration statement is so required, the Company
covenants and agrees to use its reasonable best efforts to (A) have in effect a
registration statement covering the securities to be delivered in respect of the
Purchase Contracts being settled and (B) provide a prospectus in connection
therewith, in each case in a form that the Agent may deliver to the applicable
Holders in connection with such Early Settlement.

         (c) All calculations and determinations pursuant to this Section 5.7
shall be made by the Company or its agent and the Agent shall have no
responsibility with respect thereto.

         Section 5.8 Notice of Adjustments and Certain Other Events.

         (a) Whenever the Settlement Rate is adjusted as herein provided, the
Company shall:

                  (i) forthwith compute the Settlement Rate in accordance with
         Section 5.7 hereof and prepare and transmit to the Agent an Officer's
         Certificate setting forth the Settlement Rate, the method of
         calculation thereof in reasonable detail, and the facts requiring such
         adjustment and upon which such adjustment is based; and

                  (ii) within 10 Business Days following the occurrence of an
         event that requires an adjustment to the Settlement Rate pursuant to
         Section 5.7 hereof (or if the Company is not aware of such occurrence,
         as soon as practicable after becoming so aware), provide a written
         notice to the Holders of the Securities of the occurrence of such event
         and a statement in reasonable detail setting forth the method by which
         the adjustment to the Settlement Rate was determined and setting forth
         the adjusted Settlement Rate.

                                      -54-
<PAGE>
         (b) The Agent shall not at any time be under any duty or responsibility
to the Company any Holder of Securities to determine whether any facts exist
which may require any adjustment of the Settlement Rate, or with respect to the
nature or extent or calculation of any such adjustment when made, or with
respect to the method employed in making the same. The Agent shall not be
accountable with respect to the validity or value (or the kind or amount) of any
shares of Common Stock, or of any securities or property, which may at the time
be issued or delivered with respect to any Purchase Contract; and the Agent
makes no representation with respect thereto. The Agent shall not be responsible
for any failure of the Company to issue, transfer or deliver any shares of
Common Stock pursuant to a Purchase Contract or to comply with any of the
duties, responsibilities or covenants of the Company contained in this Article.

         Section 5.9 Termination Event; Notice.

         The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights and
obligations of Holders to purchase Common Stock, shall immediately and
automatically terminate, without the necessity of any notice or action by any
Holder, the Agent or the Company, if, on or prior to the Purchase Contract
Settlement Date, a Termination Event shall have occurred.

         Upon and after the occurrence of a Termination Event, the Securities
shall thereafter represent the right to receive the Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
forming a part of such Securities in the case of Corporate Units, or Treasury
Securities in the case of Treasury Units, in accordance with the provisions of
Section 4.3 of the Pledge Agreement; provided that, to the extent that a Holder
of Corporate Units or Treasury Units would otherwise be entitled to receive less
than $1,000 principal amount at maturity of the Treasury Portfolio or the
Treasury Securities, the Agent shall dispose of such securities for cash, and
transfer the appropriate amount of such cash to such Holder in accordance with
such Holder's written instructions. Upon the occurrence of a Termination Event,
the Company shall promptly but in no event later than two Business Days
thereafter give written notice to the Agent, the Collateral Agent and to the
Holders, at their addresses as they appear in the Register.

                                      -55-
<PAGE>
         Section 5.10 Early Settlement.

         (a) Subject to and upon compliance with the provisions of this Section
5.10, at the option of the Holder thereof, Purchase Contracts underlying
Securities having an aggregate Stated Amount of $1,000 or integral multiples
thereof may effect early settlement ("Early Settlement") on or prior to 5:00
p.m. (New York City time) on the fifth Business Day immediately preceding the
Purchase Contract Settlement Date. Holders of Treasury Units may only effect
Early Settlement of the related Purchase Contracts in integral multiples of 20
Treasury Units, and if a Tax Event Redemption, a Successful Initial Remarketing
or a Successful Secondary Remarketing has occurred and the Treasury Portfolio
has become a component of the Corporate Units, Purchase Contracts underlying the
Securities may only be settled in integral multiples of 32,000 Corporate Units.
In order to exercise the right to effect Early Settlement with respect to any
Purchase Contracts, the Holder of the Certificate evidencing Securities shall
deliver to the Agent at the Corporate Trust Office or at the New York Office an
"Election to Settle Early" form (on the reverse side of the Certificate) and any
other documents requested by the Agent and accompanied by payment (payable to
the Company in immediately available funds) in an amount (the "Early Settlement
Amount") equal to the product of (i) (A) the Stated Amount times (B) the number
of Purchase Contracts with respect to which the Holder has elected to effect
Early Settlement, plus (ii) if such delivery is made with respect to any
Purchase Contracts during the period from the close of business on any Record
Date next preceding any Payment Date to the opening of business on such Payment
Date, an amount equal to the Contract Adjustment Payments payable on such
Payment Date with respect to such Purchase Contracts.

         Except as provided in the immediately preceding sentence and subject to
Section 5.1 hereof, no payment shall be made upon Early Settlement of any
Purchase Contract on account of any Contract Adjustment Payments accrued on such
Purchase Contract or on account of dividends payable on the Common Stock issued
upon such Early Settlement, the record date for which payment occurs prior to
the Early Settlement Date. If the foregoing requirements are first satisfied
with respect to Purchase Contracts underlying any Securities prior to or at 5:00
p.m. (New York City time) on a Business Day, such day shall be the "Early
Settlement Date" with respect to such Securities and if such requirements are
first satisfied after 5:00 p.m. (New York City time) on a Business Day or on a
day that is not a Business Day, the "Early Settlement Date" with respect to such
Securities shall be the next succeeding Business Day (so long as such next
succeeding Business Day is not later than the fifth Business Day immediately
preceding the Purchase Contract Settlement Date)

         (b) No Early Settlement will be permitted under this Section 5.10
unless, at the time of delivery of the Election to Settle Early form or the time
the Early Settlement is effected, there is an effective registration statement
with respect to the shares of Common Stock to be issued and delivered in
connection with such Early Settlement, if such a registration statement is
required (in the view of counsel, which need not be in the form of a written
opinion, for either the Company or the Agent) under the Securities Act. If such
a registration statement is so required, the Company covenants and agrees to use
its reasonable best efforts to (A) have in effect a registration statement
covering the shares of Common Stock to be delivered in respect of the Purchase
Contracts being settled and (B) provide a prospectus in connection therewith, in
each case in a form that the Agent may use in connection with such Early
Settlement.

         (c) Upon Early Settlement of Purchase Contracts by a Holder of the
related Securities, except in the case of Early Settlement following a Cash
Merger as described in Section 5.7(b)(2), the Company shall issue, and the
Holder shall be entitled to receive 1.7218 shares of Common Stock on account of
each Purchase Contract as to which Early Settlement is effected (the "Early

                                      -56-
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Settlement Rate"). The Early Settlement Rate shall be adjusted in the same
manner and at the same time as the Settlement Rate is adjusted.

         (d) Not later than the third Business Day after the applicable Early
Settlement Date, the Company shall cause:

                  (i) the shares of Common Stock issuable upon Early Settlement
         of Purchase Contracts to be issued and delivered, together with payment
         in lieu of any fraction of a share, as provided in Section 5.11 hereof;
         and

                  (ii) the related Notes or the appropriate Applicable Ownership
         Interest (as specified in clause (i) of the definition of such term) in
         the Treasury Portfolio, in the case of Corporate Units, or the related
         Treasury Securities, in the case of Treasury Units, to be released from
         the Pledge by the Collateral Agent and transferred, in each case, to
         the Agent for delivery to the Holder thereof or its designee.

         (e) Upon Early Settlement of any Purchase Contracts, and subject to
receipt of shares of Common Stock from the Company and the Notes, the
appropriate Applicable Ownership Interest (as specified in clause (i) of the
definition of such term) in the Treasury Portfolio, or Treasury Securities, as
the case may be, from the Securities Intermediary, as applicable, the Agent
shall, in accordance with the instructions provided by the Holder thereof on the
Election to Settle Early form (on the reverse of the Certificate evidencing the
related Securities)

                  (i) transfer to the Holder the Notes, the appropriate
         Applicable Ownership Interest (as specified in clause (i) of the
         definition of such term) in the Treasury Portfolio or Treasury
         Securities, as the case may be, forming a part of such Securities;

                  (ii) deliver to the Holder a certificate or certificates for
         the full number of shares of Common Stock issuable upon such Early
         Settlement, together with payment in lieu of any fraction of a share,
         as provided in Section 5.11 hereof; and

                  (iii) if so required under the Securities Act, deliver a
         prospectus for the shares of Common Stock issuable upon such Early
         Settlement as contemplated by Section 5.10(b).

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

                                      -57-
<PAGE>
         Section 5.11 No Fractional Shares.

         No fractional shares or scrip representing fractional shares of Common
Stock shall be issued or delivered upon settlement on the Purchase Contract
Settlement Date or upon Early Settlement of any Purchase Contracts. If
Certificates evidencing more than one Purchase Contract shall be surrendered for
settlement at one time by the same Holder, the number of full shares of Common
Stock which shall be delivered upon settlement shall be computed on the basis of
the aggregate number of Purchase Contracts evidenced by the Certificates so
surrendered. Instead of any fractional share of Common Stock which would
otherwise be deliverable upon settlement of any Purchase Contracts on the
Purchase Contract Settlement Date or upon Early Settlement, the Company, through
the Agent, shall make a cash payment in respect of such fractional interest in
an amount equal to the value of such fractional shares times the Applicable
Market Value. The Company shall provide the Agent from time to time with
sufficient funds to permit the Agent to make all cash payments required by this
Section 5.11 in a timely manner.

         Section 5.12 Charges and Taxes.

         The Company will pay all stock transfer and similar taxes attributable
to the initial issuance and delivery of the shares of Common Stock pursuant to
the Purchase Contracts and in payment of any Deferred Contract Adjustment
Payments; provided that the Company shall not be required to pay any such tax or
taxes which may be payable in respect of any exchange of or substitution for a
Certificate evidencing a Security or any issuance of a share of Common Stock in
a name other than that of the registered Holder of a Certificate surrendered in
respect of the Securities evidenced thereby, other than in the name of the
Agent, as custodian for such Holder, and the Company shall not be required to
issue or deliver such share certificates or Certificates unless or until the
Person or Persons requesting the transfer or issuance thereof shall have paid to
the Company the amount of such tax or shall have established to the satisfaction
of the Company that such tax has been paid or that no such tax is due.

                                   ARTICLE VI

                                    REMEDIES

         Section 6.1 Unconditional Right of Holders to Purchase Common Stock.

         The Holder of any Corporate Units or Treasury Units shall have the
right, which is absolute and unconditional, (A) subject to the right of the
Company to defer payment thereof pursuant to Section 5.3 hereof, and to the
forfeiture of any Deferred Contract Adjustment Payments upon Early Settlement
pursuant to Section 5.10(a) hereof or upon the occurrence of a Termination
Event, to receive payment of each installment of the Contract Adjustment
Payments, if any, with respect to the Purchase Contract constituting a part of
such Security on the respective Payment Date for such Security, and (B) to
purchase Common Stock pursuant to such Purchase Contract and, in each such case,
to institute suit for the enforcement of any such payment and right to purchase
Common Stock, and such rights shall not be impaired without the consent of such
Holder.

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<PAGE>
         Section 6.2 Restoration of Rights and Remedies.

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

         Section 6.3 Rights and Remedies Cumulative.

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

         Section 6.4 Delay or Omission Not Waiver.

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

         Section 6.5 Undertaking for Costs.

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

                                      -59-
<PAGE>
         Section 6.6 Waiver of Stay or Extension Laws.

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

                                  ARTICLE VII

                                    THE AGENT

         Section 7.1 Certain Duties and Responsibilities.

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

         (2) The Agent may, with respect to the Securities, conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement, but in the case of any certificates or
opinions which by any provision hereof are specifically required to be furnished
to the Agent, the Agent shall be under a duty to examine the same to determine
whether or not they conform to the requirements of this Agreement, but need not
confirm or investigate the accuracy of mathematical calculations stated therein.

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

         (1) this Section 7.1(b) shall not be construed to limit the effect of
Section 7.1(a);

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

         (3) no provision of this Agreement shall require the Agent to expend or
risk its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder, or in the exercise of any of its rights or
powers.

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

                                      -60-
<PAGE>
         (d) The Agent is authorized and directed to execute and deliver the
Pledge Agreement in its capacity as Agent and to perform its duties and
obligations thereunder.

         Section 7.2 Notice of Default.

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

         Section 7.3 Certain Rights of Agent.

         Subject to the provisions of Section 7.1 hereof:

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

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

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

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

         (5) the Agent shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, Note, note,
other evidence of indebtedness or other paper or document, but the Agent, in its
discretion, may make reasonable further inquiry or investigation into such facts
or matters related to the execution, delivery and performance of the Purchase
Contracts as it may see fit, and, if the Agent shall determine to make such
further inquiry or investigation, it shall be given a reasonable opportunity to
examine the books, records and premises of the Company, personally or by agent
or attorney and shall incur no liability of any kind by reason of such inquiry
or investigation;

         (6) the Agent may execute any of the powers, perform any duties
hereunder, or delegate any administrative functions either directly to, by or
through its employees, officers, agents or attorneys or an Affiliate located in
any state of the United States and the Agent shall not

                                      -61-
<PAGE>
be responsible for any misconduct or negligence on the part of any agent or
attorney or an Affiliate appointed with due care by it hereunder;

         (7) the Agent shall be under no obligation to exercise any of the
rights or powers vested in it by this Agreement solely at the request or
direction of any of the Holders pursuant to this Agreement, unless such Holders
shall have offered to the Agent security or indemnity satisfactory to the Agent
against the costs, expenses, liabilities which might be incurred by it in
compliance with such request or direction;

         (8) the Agent shall not be deemed to have notice of any default unless
a Responsible Officer of the Agent has actual knowledge thereof or unless
written notice of any event which is in fact such a default is received by the
Agent at the Corporate Trust Office of the Agent, and such notice references the
Securities and this Agreement and states that it is a notice of default; and

         (9) the Agent may request that the Company deliver an Officers'
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Agreement,
which Officers' Certificate may be signed by any person authorized to sign an
Officer's Certificate, including any person specified as so authorized in any
such Certificate previously delivered and not superseded.

         Section 7.4 Not Responsible for Recitals or Issuance of Securities.

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

         Section 7.5 May Hold Securities.

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

         Section 7.6 Money Held in Custody.

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

         Section 7.7 Compensation and Reimbursement.

         The Company agrees:

                                      -62-
<PAGE>
         (1) to pay to the Agent from time to time such compensation for all
services rendered by it hereunder as the parties shall agree from time to time
in writing;

         (2) except as otherwise expressly provided herein, to reimburse the
Agent upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Agent in carrying out its duties under this Agreement or
the Pledge Agreement (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as shall be determined by a court of competent jurisdiction to have
been caused by its own negligence, willful misconduct or bad faith; and

         (3) to indemnify the Agent for, and to hold it harmless against, any
loss, damage, liability or expense incurred without negligence, willful
misconduct or bad faith on its part, arising out of or in connection with the
acceptance or administration of its duties hereunder or under the Pledge
Agreement, including the reasonable costs and expenses of counsel selected by
the Agent to defend the Agent against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder.

         The provisions of this Section shall survive the termination of this
Agreement and the resignation or removal of the Agent.

         Section 7.8 Corporate Agent Required; Eligibility.

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

         Section 7.9 Resignation and Removal; Appointment of Successor.

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

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

                                      -63-
<PAGE>
         (c) The Agent may be removed at any time by Act of the Holders of a
majority in number of the Outstanding Securities delivered to the Agent and the
Company. If the instrument of acceptance by a successor Agent required by
Section 7.10 hereof shall not have been delivered to the Agent within 30 days
after the giving of such notice of resignation, the resigning Agent may petition
at the expense of the Company any court of competent jurisdiction for the
appointment of a successor Agent.

         (d) If at any time

                  (1) the Agent fails to comply with Section 310(b) of the TIA,
         as if the Agent were an indenture trustee under an indenture qualified
         under the TIA, after written request therefor by the Company or by any
         Holder who has been a bona fide Holder of a Security for at least six
         months, or

                  (2) the Agent shall cease to be eligible under Section 7.8
         hereof and shall fail to resign after written request therefor by the
         Company or by any such Holder, or

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

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

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

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

         Section 7.10 Acceptance of Appointment by Successor.

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

                                      -64-
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the Company or the successor Agent, such retiring Agent shall, upon payment of
its charges, execute and deliver an instrument transferring to such successor
Agent all the rights, powers and trusts of the retiring Agent and shall duly
assign, transfer and deliver to such successor Agent all property and money held
by such retiring Agent hereunder.

         (b) Upon request of any such successor Agent, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor Agent all such rights, powers and agencies referred to in
Section 7.10(a).

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

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

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

         Section 7.12 Preservation of Information; Communications to Holders.

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

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

         Section 7.13 No Obligations of Agent.

         Except to the extent otherwise provided in this Agreement, the Agent
assumes no obligations and shall not be subject to any liability under this
Agreement, the Pledge Agreement or any Purchase Contract in respect of the
obligations of the Holder of any Security thereunder. The Company agrees, and
each Holder of a Certificate, by his acceptance thereof, shall be deemed to have
agreed, that the Agent's execution of the Certificates on behalf of the Holders
shall be solely as agent and attorney-in-

                                      -65-
<PAGE>
fact for the Holders, and that the Agent shall have no obligation to perform
such Purchase Contracts on behalf of the Holders, except to the extent expressly
provided in Article V hereof.

         Section 7.14 Tax Compliance.

         (a) The Agent, on its own behalf and on behalf of the Company, will
comply with all applicable certification, information reporting and withholding
(including "backup" withholding) requirements imposed by applicable tax laws,
regulations or administrative practice with respect to (i) any payments made
with respect to the Securities or (ii) the issuance, delivery, holding,
transfer, redemption or exercise of rights under the Securities or the Notes.
Such compliance shall include, without limitation, (i) preparing, timely filing
with the applicable taxing authority, and (to the extent required under
applicable tax laws) timely furnishing Holders with copies of, all tax reports
or statements with respect to payments on, or redemptions of, the Securities
which are required to be prepared, filed, and furnished under applicable tax
laws, (ii) withholding and paying over to the applicable taxing authorities any
tax withholdings that are required to be made with respect to payments on, or
redemptions of, the Securities under applicable tax laws, and (iii) making
reasonable efforts to obtain from Holders all IRS Forms (and similar forms under
applicable state, local, and foreign tax law) and other documentation required
under applicable tax laws in order to establish exemptions from or reductions in
withholding taxes.

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

         (c) The Agent shall maintain all appropriate records documenting
compliance with such requirements, until such time as all applicable periods of
limitation for assessing or collecting any taxes or penalties for failure to
comply fully with such requirements have expired, and shall make such records
available, on written request, to the Company or its authorized representative
within a reasonable period of time after receipt of such request.

                                  ARTICLE VIII

                             SUPPLEMENTAL AGREEMENTS

         Section 8.1 Supplemental Agreements Without Consent of Holders.

         Without the consent of any Holders, the Company and the Agent, at any
time and from time to time, may enter into one or more agreements supplemental
hereto, in form satisfactory to the Company and the Agent, for any of the
following purposes:

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

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

                                      -66-
<PAGE>
         (3) to evidence and provide for the acceptance of appointment hereunder
by a successor Agent; or

         (4) to make provision with respect to the rights of Holders pursuant to
the requirements of Section 5.7(b) hereof; or

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

         Section 8.2 Supplemental Agreements with Consent of Holders.

         With the consent of the Holders of not less than a majority of the
Outstanding Purchase Contracts voting together as one class, by Act of said
Holders delivered to the Company and the Agent, the Company, when authorized by
a Board Resolution, and the Agent may enter into an agreement or agreements
supplemental hereto for the purpose of modifying in any manner the terms of the
Purchase Contracts or the provisions of this Agreement or the rights of the
Holders in respect of the Securities (other than the Notes, which may be
modified only in accordance with the applicable provisions of the Indenture);
provided that, except as contemplated herein, no such supplemental agreement
shall, without the consent of the Holder of each Outstanding Security effected
thereby,

         (1) change any Payment Date;

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

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

         (4) impair the right to institute suit for the enforcement of any
Purchase Contract, any Contract Adjustment Payment, if any, or any Deferred
Contract Adjustment Payment, if any;

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

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

provided that, if any amendment or proposal referred to above would adversely
affect only the Corporate Units or the Treasury Units, then only the affected
class of Holders as of the record date for the Holders entitled to vote thereon
will be entitled to vote on such amendment or proposal, and such amendment or

                                      -67-
<PAGE>
proposal shall not be effective except with the consent of Holders of not less
than a majority of such affected class, as applicable.

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

         Section 8.3 Execution of Supplemental Agreements.

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

         Section 8.4 Effect of Supplemental Agreements.

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

         Section 8.5 Reference to Supplemental Agreements.

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

                                   ARTICLE IX

                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

         Section 9.1 Covenant Not to Merge, Consolidate, Sell or Convey Property
Except Under Certain Conditions.

         The Company covenants that it will not merge or consolidate with any
other Person (in a merger in which the Company in a Constituent Person) or sell,
assign, transfer, lease or convey all or substantially all of its properties and
assets to any Person or group of affiliated Persons in one transaction or a
series of related transactions, unless (i) either the Company shall be the
continuing corporation, or the

                                      -68-
<PAGE>
successor (if other than the Company) shall be a corporation organized and
existing under the laws of the United States of America or a state thereof or
the District of Columbia and such corporation shall expressly assume all the
obligations of the Company under the Purchase Contracts, this Agreement, the
Notes, the Indenture (including any supplemental indenture) to the extent the
Indenture relates to the Notes, the Remarketing Agreement and the Pledge
Agreement by one or more supplemental agreements in form reasonably satisfactory
to the Agent and the Collateral Agent, executed and delivered to the Agent and
the Collateral Agent by such corporation and (ii) the Company or such successor
corporation, as the case may be, shall not, immediately after such merger or
consolidation, or such sale, assignment, transfer, lease or conveyance, be in
default of its payment obligations under this Agreement or the Notes, or in
default of its obligations to deliver shares of Common Stock (or other property)
on the Purchase Contract Settlement Date or any Early Settlement Date, or in
material default in the performance of any other covenant hereunder or under the
Notes, the Indenture (including any supplemental indenture), to the extent the
Indenture relates to the Notes, the Remarketing Agreement, the Purchase
Contracts or the Pledge Agreement.

         Section 9.2 Rights and Duties of Successor Corporation.

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

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

         Section 9.3 Opinion of Counsel Given to Agent.

         The Agent, subject to Sections 7.1 hereof and 7.3 hereof, shall receive
an Opinion of Counsel as conclusive evidence that any such consolidation,
merger, sale, assignment, transfer, lease or conveyance, and any such
assumption, complies with the provisions of this Article and that all conditions
precedent hereunder to the consummation of any such consolidation, merger, sale,
assignment, transfer, lease or conveyance have been met.

                                      -69-
<PAGE>
                                   ARTICLE X

                                    COVENANTS

         Section 10.1 Performance Under Purchase Contracts.

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

         Section 10.2 Maintenance of Office or Agency.

         The Company will maintain or cause to be maintained in the Borough of
Manhattan, The City of New York an office or agency (a "New York Office") where
Certificates may be presented or surrendered for payment and for acquisition of
shares of Common Stock (or other property) upon settlement of the Purchase
Contracts on the Purchase Contract Settlement Date or Early Settlement and for
transfer of Collateral upon occurrence of a Termination Event, where
Certificates may be surrendered for registration of transfer or exchange, for a
Collateral Substitution or re-establishment of Corporate Units and where notices
and demands to or upon the Company in respect of the Securities and this
Agreement may be served. The Company will give prompt written notice to the
Agent of the location, and any change in the location, of such office or agency.
If at any time the Company shall fail to maintain any such required office or
agency or shall fail to furnish the Agent with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office or at the Agent's office or agency maintained in the
Borough of Manhattan, The City of New York, and the Company hereby appoints the
Agent as its agent to receive all such presentations, surrenders, notices and
demands.

         The Company may also from time to time designate one or more other
offices or agencies where Certificates may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations;
provided that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in the Borough of
Manhattan, The City of New York for such purposes. The Company will give prompt
written notice to the Agent of any such designation or rescission and of any
change in the location of any such other office or agency.

         The Company hereby designates the Borough of Manhattan, The City of New
York, as the places of payment for the Securities, and hereby appoints the
Agent, acting through its New York Office as the registrar, paying agent and
transfer agent for the Corporate Units and the Treasury Units and for the other
purposes contemplated by this Section 10.2.

         Section 10.3 Company to Reserve Common Stock.

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

                                      -70-
<PAGE>
         Section 10.4 Covenants as to Common Stock, Dividends and Distributions.

         The Company covenants that all shares of Common Stock which may be
issued against tender of payment in respect of any Purchase Contract
constituting a part of the Outstanding Securities will, upon issuance, be duly
authorized, validly issued, fully paid and nonassessable. The Company shall
comply with all applicable securities laws regulating the offer, issuance and
delivery of shares of Common Stock upon settlement of Purchase Contracts and
will endeavor to list such shares on each national securities exchange or
automated quotation system on which the Common Stock is then listed. The Company
will not pay any dividend or make any distribution on shares of Common Stock
held in the treasury of the Company.

         Section 10.5 Tax Treatment.

         The Company covenants and agrees to treat each Holder as the owner, for
United States federal income tax purposes, of the applicable interest in the
Collateral Account, including Notes and Applicable Ownership Interest in the
Treasury Portfolio or the Treasury Securities.

                                      -71-
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                                   THE ST. PAUL COMPANIES, INC.

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

                                   JPMORGAN CHASE BANK,
                                   as Purchase Contract Agent

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

                                      -72-
<PAGE>
                                    EXHIBIT A

                  (Form of Face of Corporate Unit Certificate)

         [THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE
PURCHASE CONTRACT AGREEMENT (AS HEREINAFTER DEFINED) AND IS REGISTERED IN THE
NAME OF THE CLEARING AGENCY OR A NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF
THIS CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH CLEARING AGENCY OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT.

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

No. _________                                                    CUSIP No.
Number of Corporate Units __________

                               9% CORPORATE UNITS

         This Corporate Unit Certificate certifies that ___________ is the
registered Holder of the number of Corporate Units set forth above. Each
Corporate Unit represents (i) either (a) beneficial ownership by the Holder of
$50 principal amount of 5.25% senior notes due August 16, 2007 (the "Notes") of
The St. Paul Companies, Inc., a Minnesota corporation (the "Company", which
term, as used herein, includes its successors pursuant to the Purchase Contract
Agreement), subject to the Pledge of such Note by such Holder pursuant to the
Pledge Agreement or (b) upon the occurrence of a Tax Event Redemption prior to
the Purchase Contract Settlement Date, a Successful Initial Remarketing or
Successful Secondary Remarketing, the appropriate Applicable Ownership Interest
in the Treasury Portfolio, subject to the Pledge of such Applicable Ownership
Interest in the Treasury Portfolio by such Holder pursuant to the Pledge
Agreement, and (ii) the rights and obligations of the Holder under one Purchase
Contract with the Company. All capitalized terms used and not defined herein
which are defined in the Purchase Contract Agreement have the meaning set forth
therein.

         Pursuant to the Pledge Agreement, the Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
constituting part of each Corporate Unit evidenced hereby have been pledged to
the Collateral Agent, for the benefit of the Company, to secure the obligations
of the Holder under the Purchase Contract comprising a portion of such Corporate
Units.

----------
*  To be inserted in Global Certificates only.

                                      A-1
<PAGE>
         The Pledge Agreement provides that all payments of principal on the
pledged Notes or the appropriate Applicable Ownership Interest (as specified in
clause (i) of the definition of such term) in the Treasury Portfolio, as the
case may be, or interest payments on any pledged Notes (as defined in the Pledge
Agreement) or the appropriate Applicable Ownership Interest (as specified in
clause (ii) of the definition of such term) in the Treasury Portfolio, as the
case may be, constituting part of the Corporate Units received by the Collateral
Agent shall be paid by the Collateral Agent by wire transfer in same day funds
(i) in the case of (A) interest payments with respect to pledged Notes or the
appropriate Applicable Ownership Interest (as specified in clause (ii) of the
definition of such term) in the Treasury Portfolio, as the case may be, and (B)
any payments of principal or the appropriate Applicable Ownership Interest (as
specified in clause (i) of the definition of such terms) in the Treasury
Portfolio, as the case may be, with respect to any Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
that have been released from the Pledge pursuant to the Pledge Agreement, to the
Agent to the account designated by the Agent, no later than 11:00 a.m., New York
City time, on the Business Day such payment is received by the Collateral Agent
(provided that in the event such payment is received by the Collateral Agent on
a day that is not a Business Day or after 10:30 a.m., New York City time, on a
Business Day, then such payment shall be made no later than 10:30 a.m., New York
City time, on the next succeeding Business Day) and (ii) in the case of payments
of principal on any pledged Notes or the appropriate Applicable Ownership
Interest (as specified in clause (i) of the definition of such term) in the
Treasury Portfolio that has not been released from the Pledge pursuant to the
Pledge Agreement, as the case may be, to the Company on the Purchase Contract
Settlement Date (as defined herein) in accordance with the terms of the Pledge
Agreement, in full satisfaction of the respective obligations of the Holders of
the Corporate Units of which such pledged Notes or the Treasury Portfolio, as
the case may be, are a part under the Purchase Contracts forming a part of such
Corporate Units. Interest on any Notes or distributions on the appropriate
Applicable Ownership Interest (as specified in clause (ii) of the definition of
such term) in the Treasury Portfolio, as the case may be, forming part of a
Corporate Unit evidenced hereby which are payable quarterly in arrears on
February 16, May 16, August 16 and November 16 each year, commencing on November
16, 2002 (each a "Payment Date"), shall, subject to receipt thereof from the
Collateral Agent, be paid to the Person in whose name this Corporate Unit
Certificate (or a Predecessor Corporate Unit Certificate) is registered at the
close of business on the Record Date for such Payment Date.

         Each Purchase Contract evidenced hereby obligates the Holder of this
Corporate Unit Certificate to purchase, and the Company to sell, on August 16,
2005 (the "Purchase Contract Settlement Date"), at a price equal to $50 (the
"Stated Amount"), a number of newly issued shares of common stock, without par
value ("Common Stock"), of the Company equal to the Settlement Rate, unless on
or prior to the Purchase Contract Settlement Date there shall have occurred a
Termination Event or an Early Settlement with respect to the Corporate Units of
which such Purchase Contract is a part, all as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof. The purchase price
(the "Purchase Price") for the shares of Common Stock purchased pursuant to each
Purchase Contract evidenced hereby, if not paid earlier, shall be paid on the
Purchase Contract Settlement Date by application of (1) cash received from a
Holder or (2) payment received in respect of the Notes or the appropriate
Applicable Ownership Interest (as specified in clause (i) of the definition of
such term) in the Treasury Portfolio, as the case may be, pledged to secure the
obligations under such Purchase Contract of the Holder of the Corporate Units of
which such Purchase Contract is a part.

         Interest on the Notes or distributions on the appropriate Applicable
Ownership Interest (as specified in clause (ii) of the definition of such term)
in the Treasury Portfolio, as the case may be, will be payable at the Corporate
Trust Office of the Agent and at the New York Office or, at the option of the
Company, by check mailed to the address of the Person entitled thereto as such
address appears on the

                                      A-2
<PAGE>
Corporate Units Register or by wire transfer to the account designated by a
prior written notice from such Person.

         The Company shall pay on each Payment Date in respect of each Purchase
Contract forming part of a Corporate Unit evidenced hereby an amount (the
"Contract Adjustment Payments") equal to 3.75% per year of the Stated Amount,
computed on the basis of a 360-day year of twelve 30-day months, subject to
deferral at the option of the Company as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof. Such Contract
Adjustment Payments, if any, shall be payable to the Person in whose name this
Corporate Unit Certificate (or a Predecessor Corporate Unit Certificate) is
registered at the close of business on the Record Date for such Payment Date.

         Contract Adjustment Payments, if any, will be payable at the Corporate
Trust Office of the Agent and at the New York Office or, at the option of the
Company, by check mailed to the address of the Person entitled thereto as such
address appears on the Corporate Units Register.

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

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

                                      A-3
<PAGE>
         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                        THE ST. PAUL COMPANIES, INC.

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

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

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

                                        By:  JPMORGAN CHASE BANK
                                             not individually but solely as
                                             attorney-in-fact of such Holder

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

                      AGENT'S CERTIFICATE OF AUTHENTICATION

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

                                        By:       JPMORGAN CHASE BANK,
                                                  as Purchase Contract Agent

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

Dated:

                                      A-4
<PAGE>
                 (Form of Reverse of Corporate Unit Certificate)

         Each Purchase Contract evidenced hereby is governed by a Purchase
Contract Agreement, dated as of July 31, 2002 (as may be supplemented from time
to time, the "Purchase Contract Agreement"), between the Company and JPMorgan
Chase Bank, as Purchase Contract Agent (including its successors thereunder,
herein called the "Agent"), to which Purchase Contract Agreement and
supplemental agreements thereto reference is hereby made for a description of
the respective rights, limitations of rights, obligations, duties and immunities
thereunder of the Agent, the Company and the Holders and of the terms upon which
the Corporate Unit Certificates are, and are to be, executed and delivered. In
the case of any inconsistency between this Certificate and the terms of the
Purchase Contract Agreement, the terms of the Purchase Contract Agreement shall
prevail.

         Each Purchase Contract evidenced hereby obligates the Holder of this
Corporate Unit Certificate to purchase, and the Company to sell, on the Purchase
Contract Settlement Date at a price equal to the Purchase Price, a number of
newly issued shares of Common Stock of the Company equal to the Settlement Rate,
unless, on or prior to the Purchase Contract Settlement Date, there shall have
occurred a Termination Event or an Early Settlement with respect to the Security
of which such Purchase Contract is a part. The "Settlement Rate" is equal to (a)
if the Applicable Market Value (as defined below) is equal to or greater than
$29.04 (the "Threshold Appreciation Price"), 1.7218 shares of Common Stock per
Purchase Contract, (b) if the Applicable Market Value is less than the Threshold
Appreciation Price but is greater than $24.20, (the "Reference Price"), the
number of shares of Common Stock per Purchase Contract equal to the Stated
Amount divided by the Applicable Market Value and (c) if the Applicable Market
Value is less than or equal to the Reference Price, 2.0661 shares of Common
Stock per Purchase Contract, in each case subject to adjustment as provided in
the Purchase Contract Agreement. No fractional shares of Common Stock will be
issued upon settlement of Purchase Contracts, as provided in the Purchase
Contract Agreement.

         Each Purchase Contract evidenced hereby which is settled either through
Early Settlement (other than an Early Settlement following a Cash Merger
pursuant to Section 5.7(b)(2) of the Purchase Contract Agreement) or Cash
Settlement shall obligate the Holder of the related Corporate Units to purchase
at the Purchase Price, and the Company to sell, a number of newly issued shares
of Common Stock equal to the Early Settlement Rate or the Settlement Rate, as
the case may be. Each Purchase Contract evidenced hereby which is settled
through Early Settlement following a Cash Merger pursuant to Section 5.7(b)(2)
of the Purchase Agreement shall obligate the Holder of the related Corporate
Units to purchase at the Purchase Price, and the Company to sell, a number of
newly issued shares of Common Stock equal to the Settlement Rate in effect
immediately prior to the Cash Merger (as such Settlement Rate may be adjusted
pursuant to Section 5.7(b)(1) of the Purchase Contract Agreement).

         The "Applicable Market Value" means the average of the Closing Price
per share of Common Stock on each of the 20 consecutive Trading Days ending on
(a) the third Trading Day immediately preceding the Purchase Contract Settlement
Date or (b) for purposes of determining cash payable in lieu of fractional
shares in connection with an Early Settlement pursuant to Section 5.11 of the
Purchase Contract Agreement, the third Trading Day immediately preceding the
relevant Early Settlement Date or (c) for the purposes of clause (2) of Section
5.7(b) of the Purchase Contract Agreement, the third Trading Day immediately
preceding the Cash Merger Date. The "Closing Price" of the Common Stock on any
date of determination means the closing sale price (or, if no closing sale price
is reported, the last reported sale price) of the Common Stock on The New York
Stock Exchange (the "NYSE") on any such date; or, if the Common Stock is not
listed for trading on the NYSE on any such date, the closing sale price as
reported in the composite transactions for the principal United States national
or regional

                                      A-5
<PAGE>
securities exchange on which the Common Stock is so listed; or if the Common
Stock is not so listed on a United States national or regional securities
exchange, the last closing sale price of the Common Stock as reported by the
Nasdaq National Market; or, if the Common Stock is not so reported, the last
quoted bid price for the Common Stock in the over-the-counter market as reported
by the National Quotation Bureau or similar organization; or, if such bid price
is not available, the Closing Price means the market value of the Common Stock
on the date determined by a nationally recognized independent investment banking
firm retained for this purpose by the Company. A "Trading Day" means a day on
which the Common Stock (A) is not suspended from trading on any national or
regional securities exchange or association or over-the-counter market at the
close of business and (B) has traded at least once on the national or regional
securities exchange or association or over-the-counter market that is the
primary market for the trading of the Common Stock.

         In accordance with the terms of the Purchase Contract Agreement, the
Holder of this Corporate Unit Certificate shall pay the Purchase Price for the
shares of Common Stock purchased pursuant to each Purchase Contract evidenced
hereby by effecting a Cash Settlement or an Early Settlement or from the
Proceeds of a remarketing of the related pledged Notes of such Holder or of the
appropriate Applicable Ownership Interest in the Treasury Portfolio. Unless a
Tax Event Redemption, a Successful Initial Remarketing or a Successful Secondary
Remarketing has occurred, a Holder of Corporate Units who does not elect to make
an effective (1) Cash Settlement on or prior to 5:00 p.m., New York City time,
on the fifth Business Day immediately preceding the Purchase Contract Settlement
Date, or (2) Early Settlement on or prior to 5:00 p.m. New York City time, on
the fifth Business Day immediately preceding the Purchase Contract Settlement
Date, shall pay the Purchase Price for the shares of Common Stock to be issued
under the related Purchase Contract from the Proceeds of the sale of the related
pledged Notes held by the Collateral Agent. Unless a Tax Event Redemption, a
Successful Initial Remarketing or a Successful Secondary Remarketing has
occurred, such sale will be made by the Remarketing Agent pursuant to the terms
of the Remarketing Agreement and any supplemental remarketing agreement executed
in connection therewith between the parties thereto, on the third Business Day
immediately preceding the Purchase Contract Settlement Date. If a Tax Event
Redemption, a Successful Initial Remarketing or a Successful Secondary
Remarketing has occurred, a Holder of Corporate Units who does not elect to make
an effective Early Settlement on or prior to 5:00 p.m. New York City time, on
the second Business Day immediately preceding the Purchase Contract Settlement
Date shall pay the Purchase Price with the Proceeds at maturity of the
Applicable Ownership Interest (as defined in clause (i) of the definition of
such term) in the Treasury Portfolio.

         If, as provided in the Purchase Contract Agreement, (i) upon the
occurrence of a Failed Final Remarketing (unless the Holder of this Certificate
has exercised the Put Option or elected Cash Settlement) or (ii) if a Holder
notifies the Agent of its intention to effect a Cash Settlement but fails to
deliver the purchase price in cash on or prior to the Business Day immediately
preceding the Purchase Contract Settlement Date, the Collateral Agent, for the
benefit of the Company, exercises its rights as a secured creditor with respect
to the pledged Notes related to this Corporate Unit Certificate, any accrued and
unpaid interest on such pledged Notes will become payable by the Company to the
Holder of the Corporate Unit Certificate in the manner provided for in the
Purchase Contract Agreement.

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

         Under the terms of the Pledge Agreement, the Agent will be entitled to
exercise the voting and any other consensual rights pertaining to the pledged
Notes. Upon receipt of notice of any

                                      A-6
<PAGE>
meeting at which holders of Notes are entitled to vote or upon the solicitation
of consents, waivers or proxies of holders of Notes, the Agent shall, as soon as
practicable thereafter, mail to the Corporate Unit Holders a notice (a)
containing such information as is contained in the notice or solicitation, (b)
stating that each Corporate Unit Holder on the record date set by the Agent
therefor (which, to the extent possible, shall be the same date as the record
date for determining the holders of Notes entitled to vote) shall be entitled to
instruct the Agent as to the exercise of the voting rights pertaining to the
Notes constituting a part of such holder's Corporate Units and (c) stating the
manner in which such instructions may be given. Upon the written request of the
Corporate Unit Holders on such record date, the Agent shall endeavor insofar as
practicable to vote or cause to be voted, in accordance with the instructions
set forth in such requests, the maximum number of Notes as to which any
particular voting instructions are received. In the absence of specific
instructions from the Holder of a Corporate Unit, the Agent shall abstain from
voting the Notes evidenced by such Corporate Units.

         Upon the occurrence of a Tax Event Redemption prior to the Purchase
Contract Settlement Date, pursuant to the terms of the Pledge Agreement, the
Collateral Agent will apply an amount equal to the aggregate Redemption Amount
for the Notes that are components of Corporate Units to purchase, on behalf of
the Holders of Corporate Units, the Treasury Portfolio and promptly remit the
remaining portion of such Redemption Amount, if any to the Agent for payment to
the Holders of such Corporate Units.

         Upon the occurrence of a Successful Initial Remarketing or Successful
Secondary Remarketing, pursuant to the terms of the Remarketing Agreement, the
Remarketing Agent will apply an amount equal to the Treasury Portfolio Purchase
Price to purchase on behalf of the Holders of Corporate Units, the Treasury
Portfolio, and, after deducting the Remarketing Fee to the extent permitted
under the terms of the Remarketing Agreement, promptly remit the remaining
portion of such Proceeds of the Successful Initial Remarketing or Successful
Secondary Remarketing to the Agent for payment to the Holders of such Corporate
Units.

         Following the occurrence of a Tax Event Redemption prior to the
Purchase Contract Settlement Date or following a Successful Initial Remarketing
or Successful Secondary Remarketing, the Holders of Corporate Units and the
Collateral Agent shall have such security interests, rights and obligations with
respect to the Treasury Portfolio as the Holders of Corporate Units and the
Collateral Agent had in respect of the Notes, as the case may be, subject to the
Pledge thereof as provided in the Pledge Agreement and any reference herein to
the Notes shall be deemed to be a reference to such Treasury Portfolio and any
reference herein or in the Certificates to interest on the Notes shall be deemed
to be a reference to corresponding distributions on the Treasury Portfolio.

         Upon the occurrence of a Successful Final Remarketing, pursuant to the
terms of the Remarketing Agreement, the Remarketing Agent will remit the entire
amount of the proceeds from such Successful Final Remarketing to the Collateral
Agent after deducting the Remarketing Fee. The portion of the entire proceeds
which is equal to the aggregate principal amount of the remarketed Notes will
automatically be applied by the Collateral Agent, in accordance with the Pledge
Agreement, to satisfy in full the obligations of the Holder of this Corporate
Unit to pay the Purchase Price for the shares of Common Stock under the related
Purchase Contracts on the Purchase Contract Settlement Date. With respect to
Notes that are part of Corporate Units, any proceeds in excess of those required
to pay the Purchase Price for the Purchase Contracts related to such Corporate
Units and the Remarketing Fee will be remitted to the Agent for payment to the
Holders of such Corporate Units. A Holder of this Corporate Unit whose Notes are
so remarketed will not otherwise be responsible with respect to such Notes for
the payment of any Remarketing Fee in connection therewith.

                                      A-7
<PAGE>
         Following the occurrence of a Failed Final Remarketing, the holder of
the Notes will have a Put Option with regard to the Notes, and, if that Put
Option is not exercised by the Holders, the Company will, in accordance with the
terms of the Pledge Agreement, at its election, (a) direct the Collateral Agent
to dispose of such Holder's Notes in accordance with applicable law or (b) the
Company will either retain and cancel the Notes or cause the Notes to be sold in
one or more public or private sales, in either case, in full satisfaction of
such Holder's obligations under the Purchase Contracts. The Company will cause a
notice of such Failed Final Remarketing to be published on the second Business
Day immediately preceding the Purchase Contract Settlement Date in an Authorized
Newspaper.

         If a Holder of this Certificate has exercised the Put Option but has
not otherwise settled the Purchase Contracts in cash by the close of business on
the Business Day immediately prior to the Purchase Contract Settlement Date, the
put price will be applied by the Collateral Agent, in accordance with the terms
of the Pledge Agreement, to satisfy in full the obligations of the Holder to pay
the Purchase Price for the shares of Common Stock under the related Purchase
Contracts on the Purchase Contract Settlement Date.

         The Corporate Unit Certificates are issuable only in registered form
and only in denominations of a single Corporate Unit and any integral multiple
thereof. The transfer of any Corporate Unit Certificate will be registered and
Corporate Unit Certificates may be exchanged as provided in the Purchase
Contract Agreement. The Corporate Units Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents
permitted by the Purchase Contract Agreement. No service charge shall be
required for any such registration of transfer or exchange, but the Company and
the Agent may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith. A Holder who elects to
substitute Treasury Securities for Notes or the appropriate Applicable Ownership
Interest in the Treasury Portfolio, thereby creating Treasury Units, shall be
responsible for any fees or expenses payable in connection therewith. Except as
provided in the Purchase Contract Agreement, for so long as the Purchase
Contract underlying a Corporate Unit remains in effect, such Corporate Unit
shall not be separable into its constituent parts, and the rights and
obligations of the Holder of such Corporate Unit in respect of Notes or the
appropriate Applicable Ownership Interest in the Treasury Portfolio, as the case
may be, and the Purchase Contract constituting such Corporate Unit may be
transferred and exchanged only as a Corporate Unit. A Holder of a Corporate Unit
may create a Treasury Unit at any time prior to the seventh Business Day
immediately preceding the Purchase Contract Settlement Date by delivering to the
Collateral Agent Treasury Securities in an aggregate principal amount equal to
the aggregate principal amount of the pledged Notes or the appropriate
Applicable Ownership Interest (as specified in clause (i) of the definition of
such term) in the Treasury Portfolio, as the case may be, in exchange for the
release of such pledged Notes or the appropriate Applicable Ownership Interest
in the Treasury Portfolio, as the case may be, in accordance with the terms of
the Purchase Contract Agreement and the Pledge Agreement. From and after such
Collateral Substitution, the Security for which such pledged Treasury Securities
secures the Holder's obligation under the Purchase Contract shall be referred to
as a "Treasury Unit". A Holder may make such Collateral Substitution at any time
prior to the seventh Business Day immediately preceding the Purchase Contract
Settlement Date and only in integral multiples of 20 Corporate Units for the
same multiple of 20 Treasury Units; provided that if a Tax Event Redemption, a
Successful Initial Remarketing or a Successful Secondary Remarketing has
occurred and the Treasury Portfolio has become a component of the Corporate
Units, a Holder may make such Collateral Substitutions at any time prior to the
second Business Day immediately preceding the Purchase Contract Settlement Date
and only in integral multiples of 32,000 Corporate Units for the same multiple
of 32,000 Treasury Units.

                                      A-8
<PAGE>
         A Holder of Treasury Units may recreate Corporate Units at any time
prior to the seventh Business Day immediately preceding the Purchase Contract
Settlement Date by delivering to the Collateral Agent Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio, with an aggregate
principal amount, in the case of such Notes, or with the appropriate Applicable
Ownership Interest (as specified in clause (i) of the definition of such term)
in the Treasury Portfolio, in the case of such appropriate Applicable Ownership
Interest in the Treasury Portfolio, equal to the aggregate principal amount of
the pledged Treasury Securities in exchange for the release of such pledged
Treasury Securities in accordance with the terms of the Purchase Contract
Agreement and the Pledge Agreement. Any such recreation of a Corporate Unit may
be effected at any time prior to the seventh Business Day immediately preceding
the Purchase Contract Settlement Date and only in multiples of 20 Treasury Units
for the same multiple of 20 Corporate Units; provided that if a Tax Event
Redemption, a Successful Initial Remarketing or a Successful Secondary
Remarketing has occurred and the Treasury Portfolio has become a component of
the Corporate Units, a Holder may make such substitution at any time on or prior
to the second Business Day immediately preceding the Purchase Contract
Settlement Date and only in integral multiples of 32,000 Treasury Units for the
same multiple of 32,000 Corporate Units.

         Notwithstanding the foregoing, a Holder of Corporate Units may not
create Treasury Units and a Holder of Treasury Units may not recreate Corporate
Units during the period commencing on the fourth Business Day immediately prior
to the Initial Remarketing Date (and, upon a Failed Initial Remarketing, prior
to the Secondary Remarketing Date) and ending on the fourth Business Day
following the Initial Remarketing Date (and, upon a Failed Initial Remarketing,
following the Secondary Remarketing Date).

         Subject to the next succeeding paragraph, the Company shall pay, on
each Payment Date, the Contract Adjustment Payments, if any, payable in respect
of each Purchase Contract to the Person in whose name the Corporate Unit
Certificate evidencing such Purchase Contract is registered at the close of
business on the Record Date for such Payment Date. Contract Adjustment Payments,
if any, will be payable at the Corporate Trust Office of the Agent and the New
York Office or, at the option of the Company, by check mailed to the address of
the Person entitled thereto at such address as it appears on the Corporate Units
Register or by wire transfer to the account designated by such Person in
writing.

         The Company shall have the right, at any time prior to the Purchase
Contract Settlement Date, to defer the payment of any or all of the Contract
Adjustment Payments, if any, otherwise payable on any Payment Date, but only if
the Company shall give the Holders and the Agent written notice of its election
to defer such payment (specifying the amount to be deferred) as provided in the
Purchase Contract Agreement. Any Contract Adjustment Payments, if any, so
deferred shall, to the extent permitted by law, bear additional Contract
Adjustment Payments thereon at the rate of 9% per year (computed on the basis of
a 360-day year of twelve 30-day months), compounded quarterly on each succeeding
Payment Date, until paid in full (such deferred installments of contract
Adjustment Payments, if any, together with the additional Contract Adjustment
Payments accrued thereon, are referred to herein as the "Deferred Contract
Adjustment Payments"). Deferred Contract Adjustment Payments, if any, shall be
due on the next succeeding Payment Date except to the extent that payment is
deferred pursuant to the Purchase Contract Agreement. No Contract Adjustment
Payments, if any, may be deferred to a date that is on or after the Purchase
Contract Settlement Date and no such deferral period may end other than on a
Payment Date.

         In the event that the Company elects to defer the payment of Contract
Adjustment Payments, if any, on the Purchase Contracts until a Payment Date
prior to the Purchase Contract Settlement Date, then all Deferred Contract
Adjustment Payments, if any, shall be payable to the

                                      A-9
<PAGE>
registered Holders as of the close of business on the Record Date immediately
preceding such Payment Date.

         In the event that the Company elects to defer the payment of Contract
Adjustment Payments, if any, on the Purchase Contracts until the Purchase
Contract Settlement Date, the Holder of this Corporate Unit Certificate will
receive on the Purchase Contract Settlement Date, in lieu of a cash payment, a
number of shares of Common Stock (in addition to the number of shares of Common
Stock equal to the Settlement Rate) equal to (x) the aggregate amount of
Deferred Contract Adjustment Payments payable to the Holder of this Corporate
Unit Certificate divided by (y) the Applicable Market Value.

         In the event the Company exercises its option to defer the payment of
Contract Adjustment Payments, if any, then, until the Deferred Contract
Adjustment Payments have been paid, the Company shall not, and shall not permit
any of its subsidiaries to, declare or pay dividends on, make distributions with
respect to, or redeem, purchase or acquire, or make a liquidation payment with
respect to, any capital stock of the Company other than: (i) purchases,
redemptions or acquisitions of shares of capital stock of the Company in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of employees, officers or directors or a
stock purchase or dividend reinvestment plan, or the satisfaction by the Company
of its obligations pursuant to any contract or security outstanding on the date
of such event; (ii) as a result of a reclassification of the Company's capital
stock or the exchange or conversion of one class or series of the Company's
capital stock for another class or series of the Company's capital stock; (iii)
the purchase of fractional interests in shares of the Company's capital stock
pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged; (iv) dividends or distributions in
capital stock of the Company (or rights to acquire capital stock) or
repurchases, acquisitions or redemptions of capital stock in connection with the
issuance or exchange of capital stock (or securities convertible into or
exchangeable for shares of capital stock of the Company); (v) redemptions,
exchanges or repurchases of any rights outstanding under a shareholder rights
plan or the declaration or payment thereunder of a dividend or distribution of
or with respect to rights in the future; or (vi) mandatory sinking fund payments
with respect to any series of preferred stock of the Company; provided that the
aggregate stated value of all such series outstanding at the time of such
payment does not exceed 5% of the aggregate of (1) the total principal amount of
all then outstanding bonds or other securities representing secured indebtedness
issued or assumed by the Company and (2) the Company's capital and surplus to be
stated on the Company's books of account after giving effect to such payment;
provided that any moneys deposited into any sinking fund and not in violation of
this clause (vi) may thereafter be applied to the purchase or redemption of such
preferred stock in accordance with the terms of such sinking fund without regard
to the foregoing restrictions.

         The Purchase Contracts and all obligations and rights of the Company
and the Holders thereunder, including, without limitation, the rights of the
Holders to receive and the obligation of the Company to pay Contract Adjustment
Payments, if any, or any Deferred Contract Adjustment Payments, and the rights
and obligations of Holders to purchase Common Stock, shall immediately and
automatically terminate, without the necessity of any notice or action by any
Holder, the Agent or the Company, if, on or prior to the Purchase Contract
Settlement Date, a Termination Event shall have occurred. Upon the occurrence of
a Termination Event, the Company shall promptly but in no event later than two
Business Days thereafter give written notice to the Agent, the Collateral Agent
and to the Holders, at their addresses as they appear in the Corporate Units
Register. Upon and after the occurrence of a Termination Event, the Collateral
Agent shall release the Notes or the appropriate Applicable

                                      A-10
<PAGE>
Ownership Interest in the Treasury Portfolio, as the case may be, from the
Pledge in accordance with the provisions of the Pledge Agreement.

         Subject to and upon compliance with the provisions of the Purchase
Contract Agreement, at the option of the Holder thereof, Purchase Contracts
underlying Securities may be settled early ("Early Settlement") as provided in
the Purchase Contract Agreement. In order to exercise the right to effect Early
Settlement with respect to any Purchase Contracts evidenced by this Corporate
Unit Certificate, the Holder of this Corporate Unit Certificate shall deliver to
the Agent at the Corporate Trust Office an Election to Settle Early form set
forth below and any other documents requested by the Agent duly completed and
accompanied by payment in the form of immediately available funds payable to the
order of the Company in an amount (the "Early Settlement Amount") equal to (i)
the product of (A) $50 and (B) the number of Purchase Contracts with respect to
which the Holder has elected to effect Early Settlement, plus (ii) if such
delivery is made with respect to any Purchase Contracts during the period from
the close of business on any Record Date for any Payment Date to the opening of
business on such Payment Date, an amount equal to the Contract Adjustment
Payments payable on such Payment Date with respect to such Purchase Contracts.

         Upon Early Settlement of Purchase Contracts by a Holder of the related
Securities, the Notes or the appropriate Applicable Ownership Interest (as
specified in clause (i) of the definition of such term) in the Treasury
Portfolio, as the case may be, underlying such Securities shall be released from
the Pledge as provided in the Pledge Agreement and the Holder shall be entitled
to receive a number of shares of Common Stock on account of each Purchase
Contract forming part of a Corporate Unit as to which Early Settlement is
effected equal to 1.7218 shares of Common Stock per Purchase Contract (the
"Early Settlement Rate"). The Early Settlement Rate shall be adjusted in the
same manner and at the same time as the Settlement Rate is adjusted as provided
in the Purchase Contract Agreement.

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

         The Holder of this Corporate Unit Certificate, by its acceptance
hereof, authorizes the Agent to enter into and perform the related Purchase
Contracts forming part of the Corporate Units evidenced hereby on his behalf as
his attorney-in-fact, expressly withholds any consent to the assumption (i.e.,
affirmance) of the Purchase Contracts by the Company or its trustee in the event
that the Company becomes the subject of a case under the Bankruptcy Code, agrees
to be bound by the terms and provisions thereof, covenants and agrees to perform
its obligations under such Purchase Contracts, consents to the provisions of the
Purchase Contract Agreement, authorizes the Agent to enter into and perform the
Pledge Agreement on its behalf as its attorney-in-fact, and consents to the
Pledge of the Notes or the appropriate Applicable Ownership Interest in the
Treasury Portfolio, as the case may be, underlying this Corporate Unit
Certificate pursuant to the Pledge Agreement and to all other provisions of the
Pledge Agreement. The Holder further covenants and agrees, that, to the extent
and in the manner provided in the Purchase Contract Agreement and the Pledge
Agreement, but subject to the terms thereof, Proceeds of the pledged Notes or
the appropriate Applicable Ownership Interest (as specified in clause (i) of the
definition of such term) in the Treasury Portfolio on the Purchase Contract
Settlement Date shall be paid by the Collateral

                                      A-11
<PAGE>
Agent to the Company in satisfaction of such Holder's obligations under such
Purchase Contract and such Holder shall acquire no right, title or interest in
such Proceeds.

         The Holder of this Corporate Unit Certificate, by its acceptance
hereof, agrees to treat itself as owner of the related Notes or Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, and to treat
the Notes as indebtedness for all tax purposes.

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

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

         Prior to due presentment of this Certificate for registration of
transfer, the Company, the Agent and its Affiliates and any agent of the Company
or the Agent may treat the Person in whose name this Corporate Unit Certificate
is registered as the owner of the Corporate Units evidenced hereby for the
purpose of receiving payments of interest payable quarterly on the Notes or on
the maturing quarterly interest strips of the Treasury Portfolio, as applicable,
receiving payments of Contract Adjustment Payments, if any, and any Deferred
Contract Adjustment Payments, performance of the Purchase Contracts and for all
other purposes whatsoever, whether or not any payments in respect thereof be
overdue and notwithstanding any notice to the contrary, and neither the Company,
the Agent nor any such agent shall be affected by notice to the contrary.

         The Purchase Contracts shall not, prior to the settlement thereof,
entitle the Holder to any of the rights of a holder of shares of Common Stock.

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

                                      A-12

<PAGE>
                                  ABBREVIATIONS

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

TEN COM -                    as tenants in common

UNIF GIFT MIN ACT            __________Custodian______________
                             (cust)                 (minor)
                             Under Uniform Gifts to Minors Act

                             ______________________________________
                                              (State)
TEN ENT -                    as tenants by the entireties
JT TEN                       as joint tenants with right of survivorship and not
                             as tenants in common

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

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

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto____________________________________________________________
________________________________________________________________________________
(Please insert Social Security or Taxpayer I.D. or other Identifying Number of
Assignee)

(Please Print or Type Name and Address Including Postal Zip Code of Assignee)
the within Corporate Unit Certificates and all rights thereunder, hereby
irrevocably constituting and appointing
________________________________________________________________________________
attorney to transfer said Corporate Unit Certificates on the books of The St.
Paul Companies, Inc. with full power of substitution in the premises.

Dated:________________________          ________________________________________
                                        Signature

                                      A-13
<PAGE>
                                    NOTICE: The signature to this assignment
                                    must correspond with the name as it appears
                                    upon the face of the within Corporate Unit
                                    Certificates in every particular, without
                                    alteration or enlargement or any change
                                    whatsoever.

Signature Guarantee: ___________________________________

                  Signatures must be guaranteed by an "eligible guarantor
                  institution" meeting the requirements of the Registrar, which
                  requirements include membership or participation in the
                  Security Transfer Agent Medallion Program ("STAMP") or such
                  other "signature guarantee program" as may be determined by
                  the Registrar in addition to, or in substitution for, STAMP,
                  all in accordance with the Securities Exchange Act of 1934, as
                  amended.

                                      A-14
<PAGE>
                             SETTLEMENT INSTRUCTIONS

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

Dated: _______________________          ________________________________________
                                        Signature
                                        Signature Guarantee: ___________________
                                        (if assigned to another person)

                  Signatures must be guaranteed by an "eligible guarantor
institution" meeting the requirements of the Registrar, which requirements
include membership or participation in the Security Transfer Agent Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

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

         Name                                           Name

        Address                                       Address

Social Security or other
Taxpayer Identification
         Number, if any ________________________________________________________

                                      A-15
<PAGE>
                            ELECTION TO SETTLE EARLY

                  The undersigned Holder of this Corporate Unit Certificate
hereby irrevocably exercises the option to effect Early Settlement in accordance
with the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Corporate Units evidenced by this Corporate
Unit Certificate specified below. The option to effect Early Settlement may be
exercised only with respect to Purchase Contracts underlying Corporate Units
with an aggregate Stated Amount equal to $1,000 or an integral multiple thereof;
provided that if a Tax Event Redemption, a Successful Initial Remarketing or a
Successful Secondary Remarketing has occurred and the Treasury Portfolio has
become a component of the Corporate Units, Holders may early settle Corporate
Units only in integral multiples of 32,000 Corporate Units. The undersigned
Holder directs that a certificate for shares of Common Stock deliverable upon
such Early Settlement be registered in the name of, and delivered, together with
a check in payment for any fractional share and any Corporate Unit Certificate
representing any Corporate Units evidenced hereby as to which Early Settlement
of the related Purchase Contracts is not effected, to the undersigned at the
address indicated below unless a different name and address have been indicated
below. Pledged Notes or the appropriate Applicable Ownership Interest in the
Treasury Portfolio, as the case may be, deliverable upon such Early Settlement
will be transferred in accordance with the transfer instructions set forth
below. If shares are to be registered in the name of a Person other than the
undersigned, the undersigned will pay any transfer tax payable incident thereto.

Dated: _______________________          ________________________________________
                                        Signature

Signature Guarantee
(if assigned to another person): ________________________________________

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

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

                                      A-16
<PAGE>
If shares of Common Stock or Corporate Unit Certificates are to be registered in
the name of and delivered to and pledged Notes, or an Applicable Ownership
Interest in the Treasury Portfolio, as the case may be, are to be transferred to
a Person other than the Holder, please (i) print such Person's name and address
and (ii) provide a guarantee of your signature:

______________________________________________
                      Name

______________________________________________
                     Address
______________________________________________

______________________________________________

______________________________________________

______________________________________________

REGISTERED HOLDER

Please print name and address of Registered Holder:

______________________________________________
                      Name

______________________________________________
                     Address
______________________________________________

______________________________________________

______________________________________________

______________________________________________

Social Security or other
Taxpayer Identification
Number, if any    ___________________________________

Transfer Instructions for pledged Notes, or the Applicable Ownership Interest in
the Treasury Portfolio, as the case may be, Transferable Upon Early Settlement
or a Termination Event:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

                                      A-17
<PAGE>
                     [TO BE ATTACHED TO GLOBAL CERTIFICATES]

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

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

<TABLE>
<CAPTION>
             Amount of decrease        Amount of increase          Stated Amount of this           Signature of authorized signatory
             in Stated Amount of the   in Stated Amount of the     Global Certificate following    of Purchase Contract Agent or
Date         Global Certificate        Global Certificate          such decrease or increase       Securities Custodian Agent
<S>          <C>                       <C>                         <C>                             <C>
____________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________
</TABLE>

                                      A-18
<PAGE>
                                    EXHIBIT B

                   (Form of Face of Treasury Unit Certificate)

                  [THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING
OF THE PURCHASE CONTRACT AGREEMENT (AS HEREINAFTER DEFINED) AND IS REGISTERED IN
THE NAME OF THE CLEARING AGENCY OR A NOMINEE THEREOF. THIS CERTIFICATE MAY NOT
BE EXCHANGED IN WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER
OF THIS CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH CLEARING AGENCY OR A NOMINEE THEREOF, EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT.

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

No. ________                                                           CUSIP No.
Number of Treasury Units _______

                                9% TREASURY UNITS

                  This Treasury Unit Certificate certifies that ___________ is
the registered Holder of the number of Treasury Units set forth above. Each
Treasury Unit represents (i) a 1/20, or 5%, undivided beneficial ownership
interest in a Treasury Security having a principal amount at maturity equal to
$1,000, subject to the Pledge of such Treasury Security by such Holder pursuant
to the Pledge Agreement, and (ii) the rights and obligations of the Holder under
one Purchase Contract with The St. Paul Companies, Inc., a Minnesota corporation
(the "Company", which term, as used herein, includes its successors pursuant to
the Purchase Contract Agreement). All capitalized terms used herein which are
defined in the Purchase Contract Agreement have the meaning set forth therein.

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

                  The Pledge Agreement provides that all payments of the
principal of any Treasury Securities received by the Collateral Agent shall be
paid by the Collateral Agent by wire transfer in same day funds (i) in the case
of any principal payments with respect to any Treasury Securities that have been
released from the Pledge pursuant to the Pledge Agreement, to the Holders of the
applicable Treasury Units to the accounts designated by them in writing for such
purpose no later than 11:00 a.m., New York City time, on the Business Day such
payment is received by the Collateral Agent (provided that in the

------------------
* To be inserted in Global Certificates only

                                      B-1
<PAGE>
event such payment is received by the Collateral Agent on a day that is not a
Business Day or after 10:30 a.m., New York City time, on a Business Day, then
such payment shall be made no later than 10:30 a.m., New York City time, on the
next succeeding Business Day), and (ii) in the case of the principal of any
pledged Treasury Securities, to the Company on the Purchase Contract Settlement
Date (as defined herein) in accordance with the terms of the Pledge Agreement,
in full satisfaction of the respective obligations of the Holders of the
Treasury Units of which such pledged Treasury Securities are a part under the
Purchase Contracts forming a part of such Treasury Units.

                  Each Purchase Contract evidenced hereby obligates the Holder
of this Treasury Unit Certificate to purchase, and the Company to sell, on
August 16, 2005 (the "Purchase Contract Settlement Date"), at a price equal to
$50 (the "Stated Amount"), a number of newly issued shares of class A common
stock, without par value ("Common Stock"), of the Company equal to the
Settlement Rate, unless on or prior to the Purchase Contract Settlement Date
there shall have occurred a Termination Event or an Early Settlement with
respect to the Treasury Units of which such Purchase Contract is a part, all as
provided in the Purchase Contract Agreement and more fully described on the
reverse hereof. The purchase price (the "Purchase Price") for the shares of
Common Stock purchased pursuant to each Purchase Contract evidenced hereby, it
not paid earlier, shall be paid on the Purchase Contract Settlement Date by
application of the Proceeds from the Treasury Securities pledged to secure the
obligations under such Purchase Contract in accordance with the terms of the
Pledge Agreement.

                  The Company shall pay on each Payment Date in respect of each
Purchase Contract forming part of a Treasury Unit evidenced hereby an amount
(the "Contract Adjustment Payments") equal to 3.75% per year of the Stated
Amount, computed on the basis of a 360-day year of twelve 30-day months, subject
to deferral at the option of the Company as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof. Such Contract
Adjustment Payments, if any, shall be payable to the Person in whose name this
Treasury Unit Certificate (or a Predecessor Treasury Unit Certificate) is
registered at the close of business on the Record Date for such Payment Date.

                  Contract Adjustment Payments, if any, will be payable at the
Corporate Trust Office of the Agent and at the New York Office or, at the option
of the Company, by check mailed to the address of the Person entitled thereto as
such address appears on the Treasury Units Register or by wire transfer to the
account designated by such Person by prior written notice.

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

                                      B-2
<PAGE>
                  Unless the certificate of authentication hereon has been
executed by the Agent by manual signature, this Corporate Unit Certificate shall
not be entitled to any benefit under the Pledge Agreement or the Purchase
Contract Agreement or be valid or obligatory for any purpose.

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

                         THE ST. PAUL COMPANIES, INC.

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

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

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

                         HOLDER SPECIFIED ABOVE (as to
                         obligations of such Holder under the
                         Purchase Contracts evidenced hereby)
                         By:  JPMORGAN CHASE BANK,
                              not individually but solely as attorney-
                              in-fact of such Holder

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

                      AGENT'S CERTIFICATE OF AUTHENTICATION

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

                         By:       JPMORGAN CHASE BANK,
                                   as Purchase Contract Agent

                         By:
                                    Authorized Signatory

Dated:

                                      B-3
<PAGE>
                 (Form of Reverse of Treasury Unit Certificate)

                  Each Purchase Contract evidenced hereby is governed by a
Purchase Contract Agreement, dated as of July 31, 2002 (as may be supplemented
from time to time, the "Purchase Contract Agreement"), between the Company and
JPMorgan Chase Bank, as Purchase Contract Agent (including its successors
thereunder, herein called the "Agent"), to which the Purchase Contract Agreement
and supplemental agreements thereto reference is hereby made for a description
of the respective rights, limitations of rights, obligations, duties and
immunities thereunder of the Agent, the Company and the Holders and of the terms
upon which the Treasury Unit Certificates are, and are to be, executed and
delivered. In the case of any inconsistency between this Certificate and the
terms of the Purchase Contract Agreement, the terms of the Purchase Contract
Agreement shall prevail.

                  Each Purchase Contract evidenced hereby obligates the Holder
of this Treasury Unit Certificate to purchase, and the Company to sell, on the
Purchase Contract Settlement Date at the Purchase Price, a number of newly
issued shares of Common Stock of the Company equal to the Settlement Rate,
unless, on or prior to the Purchase Contract Settlement Date, there shall have
occurred a Termination Event or an Early Settlement with respect to the Security
of which such Purchase Contract is a part. The "Settlement Rate" is equal to (a)
if the Applicable Market Value (as defined below) is equal to or greater than
$29.04 (the "Threshold Appreciation Price"), 1.7218 shares of Common Stock per
Purchase Contract, (b) if the Applicable Market Value is less than the Threshold
Appreciation Price but is greater than $24.20 (the "Reference Price"), the
number of shares of Common Stock per Purchase Contract equal to the Stated
Amount divided by the Applicable Market Value and (c) if the Applicable Market
Value is less than or equal to the Reference Price, 2.0661 shares of Common
Stock per Purchase Contract, in each case subject to adjustment as provided in
the Purchase Contract Agreement. No fractional shares of Common Stock will be
issued upon settlement of Purchase Contracts, as provided in the Purchase
Contract Agreement.

                  Each Purchase Contract evidenced hereby which is settled
through Early Settlement (other than an Early Settlement following a Cash Merger
pursuant to Section 5.7(b)(2) of the Purchase Contract Agreement) shall obligate
the Holder of the related Treasury Units to purchase at the Purchase Price, and
the Company to sell, a number of newly issued shares of Common Stock equal to
the Early Settlement Rate. Each Purchase Contract evidenced hereby which is
settled through Early Settlement following a Cash Merger pursuant to Section
5.7(b)(2) of the Purchase Agreement shall obligate the Holder of the related
Treasury Units to purchase at the Purchase Price, and the Company to sell, a
number of newly issued shares of Common Stock equal to the Settlement Rate in
effect immediately prior to the Cash Merger (as such Settlement Rate may be
adjusted pursuant to Section 5.7(b)(1) of the Purchase Contract Agreement).

                  The "Applicable Market Value" means the average of the Closing
Price per share of Common Stock on each of the 20 consecutive Trading Days
ending on (a) the third Trading Day immediately preceding the Purchase Contract
Settlement Date or (b) for purposes of determining cash payable in lieu of
fractional shares in connection with an Early Settlement pursuant to Section
5.11 of the Purchase Contract Agreement, the third Trading Day immediately
preceding the relevant Early Settlement Date or (c) for the purposes of clause
(2) of Section 5.7(b) of the Purchase Contract Agreement, the third Trading Day
immediately preceding the Cash Merger Date. The "Closing Price" of the Common
Stock on any date of determination means the closing sale price (or, if no
closing sale price is reported, the last reported sale price) of the Common
Stock on The New York Stock Exchange (the "NYSE") on such date or, if the Common
Stock is not listed for trading on the NYSE on any such date, as reported in
composite transactions for the principal United States securities exchange on
which the Common Stock is so listed, or if the Common Stock is not so listed on
a United States national or regional securities exchange, the

                                      B-4
<PAGE>
last closing sales price on and as reported as reported by the Nasdaq National
Market or, if the Common Stock is not so reported, the last quoted bid price for
the Common Stock in the over-the-counter market as reported by the National
Quotation Bureau or similar organization, or, if such bid price is not
available, the Closing Price means the market value of the Common Stock on the
date determined by a nationally recognized independent investment banking firm
retained for this purpose by the Company. A "Trading Day" means a day on which
the Common Stock (A) is not suspended from trading on any national or regional
securities exchange or association or over-the-counter market at the close of
business and (B) has traded at least once on the national or regional securities
exchange or association or over-the-counter market that is the primary market
for the trading of the Common Stock.

                  In accordance with the terms of the Purchase Contract
Agreement, the Holder of this Treasury Unit Certificate shall pay the Purchase
Price for the shares of Common Stock purchased pursuant to each Purchase
Contract evidenced hereby by effecting either an Early Settlement of each such
Purchase Contract or by applying a principal amount of the pledged Treasury
Securities underlying such Holder's Treasury Units equal to the Stated Amount to
the purchase of the Common Stock. A Holder of Treasury Units who does not elect,
on or prior to 5:00 p.m., New York City time, on the second Business Day
immediately preceding the Purchase Contract Settlement Date, to make an Early
Settlement, shall pay the Purchase Price for the shares of Common Stock to be
issued on the related Purchase Contract by applying a principal amount of the
pledged Treasury Securities as aforesaid.

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

                  The Treasury Unit Certificates are issuable only in registered
form and only in denominations of a single Treasury Unit and any integral
multiple thereof. The transfer of any Treasury Unit Certificate will be
registered and Treasury Unit Certificates may be exchanged as provided in the
Purchase Contract Agreement. The Treasury Units Registrar may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents
permitted by the Purchase Contract Agreement. No service charge shall be
required for any such registration of transfer or exchange, but the Company and
the Agent may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith. A Holder who elects to
substitute Notes or the appropriate Applicable Ownership Interest in the
Treasury Portfolio, as the case may be, for Treasury Securities, thereby
recreating Corporate Units, shall be responsible for any fees or expenses
payable in connection therewith. Except as provided in the Purchase Contract
Agreement, for so long as the Purchase Contract underlying a Treasury Unit
remains in effect, such Treasury Unit shall not be separable into its
constituent parts, and the rights and obligations of the Holder of such Treasury
Unit in respect of the Treasury Security and the Purchase Contract constituting
such Treasury Unit may be transferred and exchanged only as a Treasury Unit. A
Holder of Treasury Units may recreate Corporate Units at any time prior to the
seventh Business Day immediately preceding the Purchase Contract Settlement Date
by delivering to the Collateral Agent Notes or the appropriate Applicable
Ownership Interest in the Treasury Portfolio, with an aggregate principal
amount, in the case of such Notes, or with the appropriate Applicable Ownership
Interest (as specified in clause (i) of the definition of such term) in the
Treasury Portfolio, in the case of such appropriate Applicable Ownership
Interest in the Treasury Portfolio, equal to the aggregate principal amount of
the pledged Treasury Securities in exchange for the release of such pledged
Treasury Securities in accordance with the terms of the Purchase Contract
Agreement and the Pledge Agreement. From and after such substitution, the
Security for which such pledged Notes or appropriate Applicable Ownership
Interest in the Treasury Portfolio, as the case may be, secures the Holder's

                                      B-5
<PAGE>
obligation under the Purchase Contract shall be referred to as a "Corporate
Unit". A Holder may make such a substitution at any time prior to the seventh
Business Day immediately preceding the Purchase Contract Settlement Date and
only in integral multiples of 20 Treasury Units for the same multiple of 20
Corporate Units; provided that if a Tax Event Redemption, Successful Initial
Remarketing or Successful Secondary Remarketing has occurred and the Treasury
Portfolio has become a component of the Corporate Units, a Holder may make such
substitution at any time on or prior to the second Business Day immediately
preceding the Purchase Contract Settlement Date and only in integral multiples
of 32,000 Treasury Units for the same multiple of 32,000 Corporate Units.

                  A Holder of a Corporate Unit may create a Treasury Unit any
time prior to the seventh Business Day immediately preceding the Purchase
Contract Settlement Date by delivering to the Collateral Agent Treasury
Securities in an aggregate principal amount of the pledged Notes or the
appropriate Applicable Ownership Interest (as specified in clause (i) of the
definition of such term) in the Treasury Portfolio, as the case may be, in
exchange for the release of such pledged Notes or the appropriate Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, in accordance
with the terms of the Purchase Contract Agreement and the Pledge Agreement. Any
such creation of a Treasury Unit may be effected at any time prior to the
seventh Business Day immediately preceding the Purchase Contract Settlement Date
and only in multiples of 20 Corporate Units for the same multiple of 20 Treasury
Units; provided if a Tax Event Redemption or a Successful Initial Remarketing
has occurred and the Treasury Portfolio has become a component of the Corporate
Units, a Holder may make such Collateral Substitution at any time on or prior to
the second Business Day immediately preceding the Purchase Contract Settlement
Date and only in integral multiples of 32,000 Corporate Units for the same
multiple of 32,000 Treasury Units.

                  Notwithstanding the foregoing, a Holder of Corporate Units may
not create Treasury Units and a Holder of Treasury Units may not recreate
Corporate Units during the period commencing on the fourth Business Day
immediately prior to the Initial Remarketing Date (and, upon a Failed Initial
Remarketing, prior to the Secondary Remarketing Date) and ending on the fourth
Business Day following the Initial Remarketing Date (and, upon a Failed Initial
Remarketing, following the Second Remarketing Date).

                  Subject to the next succeeding paragraph, the Company shall
pay, on each Payment Date, the Contract Adjustment Payments, if any, payable in
respect of each Purchase Contract to the Person in whose name the Treasury Unit
Certificate evidencing such Purchase Contract is registered at the close of
business on the Record Date for such Payment Date. Contract Adjustment Payments,
if any, will be payable at the Corporate Trust Office of the Agent and the New
York Office or, at the option of the Company, by check mailed to the address of
the Person entitled thereto at such address as it appears on the Treasury Units
Register.

                  The Company shall have the right, at any time prior to the
Purchase Contract Settlement Date, to defer the payment of any or all of the
Contract Adjustment Payments, if any, otherwise payable on any Payment Date, but
only if the Company shall give the Holders and the Agent written notice of its
election to defer such payment (specifying the amount to be deferred) as
provided in the Purchase Contract Agreement. Any Contract Adjustment Payments,
if any, so deferred shall, to the extent permitted by law, bear additional
Contract Adjustment Payments thereon at the rate of 9% per year (computed on the
basis of a 360-day year of twelve 30 day months), compounded quarterly on each
succeeding Payment Date, until paid in full (such deferred installments of
Contract Adjustment Payments, if any, together with the additional Contract
Adjustment Payments accrued thereon, are referred to herein as the "Deferred
Contract Adjustment Payments"). Deferred Contract Adjustment Payments, if any,
shall be due on the next succeeding Payment Date except to the extent that
payment is deferred pursuant to the

                                      B-6
<PAGE>
Purchase Contract Agreement. No Contract Adjustment Payments, if any, may be
deferred to a date that is on or after the Purchase Contract Settlement Date and
no such deferral period may end other than on a Payment Date.

                  In the event that the Company elects to defer the payment of
Contract Adjustment Payments, if any, on the Purchase Contracts until a Payment
Date prior to the Purchase Contract Settlement Date, then all Deferred Contract
Adjustment Payments, if any, shall be payable to the registered Holders as of
the close of business on the Record Date immediately preceding such Payment
Date.

                  In the event that the Company elects to defer the payment of
Contract Adjustment Payments, if any, on the Purchase Contracts until the
Purchase Contract Settlement Date, the Holder of this Treasury Unit Certificate
will receive on the Purchase Contract Settlement Date, in lieu of a cash
payment, a number of shares of Common Stock (in addition to the number of shares
of Common Stock equal to the Settlement Rate) equal to (x) the aggregate amount
of Deferred Contract Adjustment Payments payable to the Holder of this Treasury
Unit Certificate divided by (y) the Applicable Market Value.

                  In the event the Company exercises its option to defer the
payment of Contract Adjustment Payments, if any, then, until the Deferred
Contract Adjustment Payments have been paid, the Company shall not, and shall
not permit any of its subsidiaries to, declare or pay dividends on, make
distributions with respect to, or redeem, purchase or acquire, or make a
liquidation payment with respect to, any capital stock of the Company other
than: (i) purchases, redemptions or acquisitions of shares of capital stock of
the Company in connection with any employment contract, benefit plan or other
similar arrangement with or for the benefit of employees, officers or directors
or a stock purchase or dividend reinvestment plan, or the satisfaction by the
Company of its obligations pursuant to any contract or security outstanding on
the date of such event; (ii) as a result of a reclassification of the Company's
capital stock or the exchange or conversion of one class or series of the
Company's capital stock for another class or series of the Company's capital
stock; (iii) the purchase of fractional interests in shares of the Company's
capital stock pursuant to the conversion or exchange provisions of such capital
stock or the security being converted or exchanged; (iv) dividends or
distributions in capital stock of the Company (or rights to acquire capital
stock) or repurchases, acquisitions or redemptions of capital stock in
connection with the issuance or exchange of capital stock (or securities
convertible into or exchangeable for shares of capital stock of the Company) ;
(v) redemptions, exchanges or repurchases of any rights outstanding under a
shareholder rights plan or the declaration or payment thereunder of a dividend
or distribution of or with respect to rights in the future; or (vi) mandatory
sinking fund payments with respect to any series of preferred stock of the
Company; provided that the aggregate stated value of all such series outstanding
at the time of such payment does not exceed 5% of the aggregate of (1) the total
principal amount of all then outstanding bonds or other securities representing
secured indebtedness issued or assumed by the Company and (2) the Company's
capital and surplus to be stated on the Company's books of account after giving
effect to such payment; provided that any moneys deposited into any sinking fund
and not in violation of this clause (vi) may thereafter be applied to the
purchase or redemption of such preferred stock in accordance with the terms of
such sinking fund without regard to the foregoing restrictions.

                  The Purchase Contracts and all obligations and rights of the
Company and the Holders thereunder, including, without limitation, the rights of
the Holders to receive and the obligation of the Company to pay Contract
Adjustment Payments, if any, or any Deferred Contract Adjustment Payments, and
the rights and obligations of Holders to purchase Common Stock shall immediately
and automatically terminate, without the necessity of any notice or action by
any Holder, the Agent or the Company, if, on

                                      B-7
<PAGE>
or prior to the Purchase Contract Settlement Date, a Termination Event shall
have occurred. Upon the occurrence of a Termination Event, the Company shall
promptly but in no event later than two Business Days thereafter give written
notice to the Agent, the Collateral Agent and to the Holders, at their addresses
as they appear in the Treasury Units Register. Upon and after the occurrence of
a Termination Event, the Collateral Agent shall release the Treasury Securities
from the Pledge in accordance with the provisions of the Pledge Agreement.

                  Subject to and upon compliance with the provisions of the
Purchase Contract Agreement, at the option of the Holder thereof, Purchase
Contracts underlying Securities may be settled early ("Early Settlement") as
provided in the Purchase Contract Agreement. In order to exercise the right to
effect Early Settlement with respect to any Purchase Contracts evidenced by this
Corporate Unit Certificate, the Holder of this Treasury Unit Certificate shall
deliver to the Agent at the Corporate Trust Office an Election to Settle Early
form set forth below and any other documents requested by the Agent duly
completed and accompanied by payment in the form of immediately available funds
payable to the order of the Company in an amount (the "Early Settlement Amount")
equal to (i) the product of (A) $50 times (B) the number of Purchase Contracts
with respect to which the Holder has elected to effect Early Settlement, plus
(ii) if such delivery is made with respect to any Purchase Contracts during the
period from the close of business on any Record Date for any Payment Date to the
opening of business on such Payment Date, an amount equal to the Contract
Adjustment Payments payable on such Payment Date with respect to such Purchase
Contracts.

                  Upon Early Settlement of Purchase Contracts by a Holder of the
related Securities the Pledged Treasury Securities underlying such Securities
shall be released from the Pledge as provided in the Pledge Agreement and the
Holder shall be entitled to receive a number of shares of Common Stock on
account of each Purchase Contract forming part of a Treasury Unit as to which
Early Settlement is effected equal to 1.7218 shares of Common Stock per Purchase
Contract (the "Early Settlement Rate"). The Early Settlement Rate shall be
adjusted in the same manner and at the same time as the Settlement Rate is
adjusted as provided in the Purchase Contract Agreement.

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

                  The Holder of this Treasury Unit Certificate, by its
acceptance hereof, authorizes the Agent to enter into and perform the related
Purchase Contracts forming part of the Treasury Units evidenced hereby on his
behalf as its attorney-in-fact, expressly withholds any consent to the
assumption (i.e., affirmance) of the Purchase Contracts by the Company or its
trustee in the event that the Company becomes the subject of a case under the
Bankruptcy Code, agrees to be bound by the terms and provisions thereof,
covenants and agrees to perform its obligations under such Purchase Contracts,
consents to the provisions of the Purchase Contract Agreement, authorizes the
Agent to enter into and perform the Pledge Agreement on its behalf as its
attorney-in-fact, and consents to the Pledge of the Treasury Securities
underlying this Treasury Unit Certificate pursuant to the Pledge Agreement and
to all other provisions of the Pledge Agreement. The Holder further covenants
and agrees, that, to the extent and in the manner provided in the Purchase
Contract Agreement and the Pledge Agreement, but subject to the terms thereof,
Proceeds of the pledged Treasury Securities on the Purchase Contract Settlement
Date shall be paid by the

                                      B-8
<PAGE>
Collateral Agent to the Company in satisfaction of such Holder's obligations
under such Purchase Contract and such Holder shall acquire no right, title or
interest in such Proceeds.

                  The Holder of this Treasury Unit Certificate, by its
acceptance hereof, agrees to treat itself as owner of the Applicable Ownership
Interest in the Treasury Securities.

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

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

                  Prior to due presentment of this Certificate for registration
of transfer, the Company, the Agent and its Affiliates and any agent of the
Company or the Agent may treat the Person in whose name this Treasury Unit
Certificate is registered as the owner of the Treasury Units evidenced hereby
for the purpose of receiving payments on the Treasury Securities, receiving
payments of Contract Adjustment Payments, if any, and any Deferred Contract
Adjustment Payments, performance of the Purchase Contracts and for all other
purposes whatsoever, whether or not any payments in respect thereof be overdue
and notwithstanding any notice to the contrary, and neither the Company, the
Agent nor any such agent shall be affected by notice to the contrary.

                  The Purchase Contracts shall not, prior to the settlement
thereof, entitle the Holder to any of the rights of a holder of shares of Common
Stock.

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

                                      B-9
<PAGE>
                                  ABBREVIATIONS

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

TEN COM -                    as tenants in common

UNIF GIFT MIN ACT            __________Custodian______________
                             (cust)                 (minor)
                             Under Uniform Gifts to Minors Act

                             ______________________________________
                                              (State)
TEN ENT -                    as tenants by the entireties
JT TEN                       as joint tenants with right of survivorship and not
                             as tenants in common
Additional abbreviations may also be used though not in the above list.

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

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto____________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please insert Social Security or Taxpayer I.D. or other Identifying Number of
Assignee)
________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
(Please Print or Type Name and Address Including Postal Zip Code of Assignee)
the within Treasury Unit Certificates and all rights thereunder, hereby
irrevocably constituting and appointing
________________________________________________________________________________
attorney to transfer said Treasury Unit Certificates on the books of The St.
Paul Companies, Inc. with full power of substitution in the premises.

Dated:________________________          ________________________________________
                                        Signature

                                      B-10
<PAGE>
                           NOTICE: The signature to this assignment must
                           correspond with the name as it appears upon the face
                           of the within Treasury Unit Certificates in every
                           particular, without alteration or enlargement or any
                           change whatsoever.

Signature Guarantee: ___________________________________
Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

                                      B-11
<PAGE>
                             SETTLEMENT INSTRUCTIONS

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

Dated:________________________          ________________________________________
                                        Signature
                                        Signature Guarantee: ________________
                                        (if assigned to another person)

                  Signatures must be guaranteed by an "eligible guarantor
institution" meeting the requirements of the Registrar, which requirements
include membership or participation in the Security Transfer Agent Medallion
Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

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

                                      Name

                                     Address

Social Security or other
Taxpayer Identification
         Number, if any

                                      B-12
<PAGE>
                                REGISTERED HOLDER

               Please print name and address of Registered Holder:

                                      Name

                                     Address

                                      B-13
<PAGE>
                            ELECTION TO SETTLE EARLY

                  The undersigned Holder of this Treasury Unit Certificate
hereby irrevocably exercises the option to effect Early Settlement in accordance
with the terms of the Purchase Contract Agreement with respect to the Purchase
Contracts underlying the number of Treasury Units evidenced by this Treasury
Unit Certificate specified below. The option to effect Early Settlement may be
exercised only with respect to Purchase Contracts underlying Treasury Units with
an aggregate Stated Amount equal to $1,000 or an integral multiple thereof. The
undersigned Holder directs that a certificate for shares of Common Stock
deliverable upon such Early Settlement be registered in the name of, and
delivered, together with a check in payment for any fractional share and any
Treasury Unit Certificate representing any Treasury Units evidenced hereby as to
which Early Settlement of the related Purchase Contracts is not effected, to the
undersigned at the address indicated below unless a different name and address
have been indicated below. Pledged Treasury Securities deliverable upon such
Early Settlement will be transferred in accordance with the transfer
instructions set forth below. If shares are to be registered in the name of a
Person other than the undersigned, the undersigned will pay any transfer or
similar tax payable incident thereto.

Dated:________________________          ________________________________________
                                        Signature

Signature Guarantee:______________________________

(if assigned to another person)

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

                                      B-14
<PAGE>
                  Number of Securities evidenced hereby as to which Early
Settlement of the related Purchase Contracts is being elected:

If shares of Common Stock or Treasury Unit Certificates are to be registered in
the name of and delivered to and pledged Treasury Securities are to be
transferred to a Person other than the Holder, please (i) print such Person's
name and address and (ii) provide a guarantee of your signature:

                                      Name

                                     Address

Social Security or other
Taxpayer Identification
         Number, if any

Please print name and address of Registered Holder:

                                      Name

                                     Address

Transfer Instructions for pledged Treasury Securities Transferable Upon Early
Settlement or Termination Event

                                      B-15
<PAGE>
                     [TO BE ATTACHED TO GLOBAL CERTIFICATES]

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

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

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

<TABLE>
<CAPTION>
         Amount of decrease        Amount of increase            Stated Amount of this             Signature of authorized signatory
         in Stated Amount of the   in Stated Amount of the       Global Certificate following      of Purchase Contract Agent or
Date     Global Certificate        Global Certificate            such decrease or increase         Securities Custodian Agent
<S>     <C>                        <C>                           <C>                               <C>
</TABLE>

                                      B-16
<PAGE>
                                    EXHIBIT C

                    INSTRUCTION FROM PURCHASE CONTRACT AGENT

                               TO COLLATERAL AGENT

BNY Midwest Trust Company
2 North LaSalle Street
Suite 1020
Chicago, Illinois 60602
Attention:  Corporate Trust Department

                  Re:      Equity Units of The St. Paul Companies, Inc. (the
                           "Company")

                  We hereby notify you in accordance with Section 4.1 and 4.2 of
the Pledge Agreement, dated as of July 31, 2002, (the "Pledge Agreement") among
the Company, yourselves, as Collateral Agent, Custodial Agent and Securities
Intermediary and ourselves, as Purchase Contract Agent and as attorney-in-fact
for the holders of [Corporate Units] [Treasury Units] from time to time, that
the holder of the Securities listed below (the "Holder") has elected to
substitute [$_____ aggregate principal amount of Treasury Securities] [$_______
aggregate principal amount of Notes or the appropriate Applicable Ownership
Interest in the Treasury Portfolio, as the case may be,] in exchange for an
equal Value of [Pledged Notes or the appropriate Applicable Ownership Interest
in the Treasury Portfolio, as the case may be,] [Pledged Treasury Securities]
held by you in accordance with the Pledge Agreement and has delivered to us a
notice stating that the Holder has Transferred [Treasury Securities] [Notes or
the appropriate Applicable Ownership Interest in the Treasury Portfolio, as the
case may be,] to you, as Collateral Agent. We hereby instruct you, upon receipt
of such [Pledged Treasury Securities] [Pledged Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,],
and upon the payment by such Holder of any applicable fees, to release the
[Notes or the appropriate Applicable Ownership Interest in the Treasury
Portfolio, as the case may be,] [Treasury Securities] related to such [Corporate
Units] [Treasury Units] to us in accordance with the Holder's instructions.
Capitalized terms used herein but not defined shall have the meaning set forth
in the Pledge Agreement.

Date: _______________         ____________________________
                                       By: _________________________________
                                             Name:
                                             Title:
                                             Signature Guarantee: ______________

Please print name and address of Registered Holder electing to substitute
[Treasury Securities] [Notes or the appropriate Applicable Ownership Interest in
the Treasury Portfolio, as the case may be,] for the [Pledged Notes or the
appropriate Applicable Ownership Interest in the Treasury Portfolio, as the case
may be,] [Pledged Treasury Securities]:

___________________________                 ____________________________________
            Name                            Social Security or other Taxpayer
                                            Identification Number, if any

___________________________
           Address

___________________________

___________________________

                                       C-1
<PAGE>
                                    EXHIBIT D

                     INSTRUCTION TO PURCHASE CONTRACT AGENT

JPMorgan Chase Bank
450 West 33rd Street
15th Floor
New York, New York 10001

Attention:  Institutional Trust Services

                  Re:      Equity Units of The St. Paul Companies, Inc. (the
                           "Company")

                  The undersigned Holder hereby notifies you that it has
delivered to, as Collateral Agent, [$_______ aggregate principal amount of
Treasury Securities] [$__________ aggregate principal amount of Notes or the
appropriate Applicable Ownership Interest in the Treasury Portfolio, as the case
may be,] in exchange for an equal Value of [Pledged Notes or the appropriate
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,]
[Pledged Treasury Securities] held by the Collateral Agent, in accordance with
Section 4.1 and 4.2 of the Pledge Agreement, dated July 31, 2002 (the "Pledge
Agreement"), between you, the Company and the Collateral Agent. The undersigned
Holder has paid the Collateral Agent all applicable fees relating to such
exchange. The undersigned Holder hereby instructs you to instruct the Collateral
Agent to release to you on behalf of the undersigned Holder the [Pledged Notes
or the appropriate Applicable Ownership Interest in the Treasury Portfolio]
[Pledged Treasury Securities] related to such [Corporate Units] [Treasury
Units]. Capitalized terms used herein but not defined shall have the meaning set
forth in the Pledge Agreement.

Dated:
                                                        Signature

                                                        Signature Guarantee:

Please print name and address of Registered Holder:

           Name                                Social Security or other Taxpayer
                                               Identification Number, if any

          Address

                                      D-1
<PAGE>
                                    EXHIBIT E

                        NOTICE TO SETTLE BY SEPARATE CASH

JPMorgan Chase Bank
450 West 33rd Street
15th Floor
New York, New York 10001

Attention:  Institutional Trust Services

                  Re:      Equity Units of The St. Paul Companies, Inc. (the
                           "Company")

                  The undersigned Holder hereby irrevocably notifies you in
accordance with Section 5.5 of the Purchase Contract Agreement dated as of July
31, 2002 among the Company and yourselves, as Purchase Contract Agent and as
attorney-in-fact for the Holders of the Purchase Contracts, that such Holder has
elected to pay to the Collateral Agent, on or prior to 11:00 a.m. New York City
time, on the Business Day immediately preceding the Purchase Contract Settlement
Date, (in lawful money of the United States by certified or cashiers check or
wire transfer, in each case in immediately available funds), $__________ as the
Purchase Price for the shares of Common Stock issuable to such Holder by the
Company under the related Purchase Contract on the Purchase Contract Settlement
Date. The undersigned Holder hereby instructs you to notify promptly the
Collateral Agent of the undersigned Holders election to make such cash
settlement with respect to the Purchase Contracts related to such Holder's
[Corporate Units] [Treasury Units].

Dated:
                                                        Signature

                                                        Signature Guarantee:

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended. Please print name and address of
Registered Holder:

          Name                                 Social Security or other Taxpayer
                                               Identification Number, if any

         Address

                                      E-1<PAGE>
                                                                     Exhibit 4.3

                                PLEDGE AGREEMENT

                            DATED AS OF JULY 31, 2002

                                      AMONG

                          THE ST. PAUL COMPANIES, INC.

                                       AND

                           BNY MIDWEST TRUST COMPANY,
                      AS COLLATERAL AGENT, CUSTODIAL AGENT
                           AND SECURITIES INTERMEDIARY

                                       AND

                              JPMORGAN CHASE BANK,
                           AS PURCHASE CONTRACT AGENT

                                       1
<PAGE>

         PLEDGE AGREEMENT, dated as of July 31, 2002 (this "Agreement"), among
The St. Paul Companies, Inc., a Minnesota corporation (the "Company"), BNY
Midwest Trust Company, an Illinois trust company ("BNY Midwest Trust Company"),
not individually but solely as collateral agent (in such capacity, together with
its successors in such capacity, the "Collateral Agent"), as custodial agent (in
such capacity, together with its successors in such capacity, the "Custodial
Agent") and as "securities intermediary" as defined in Section 8-102(a)(14) of
the Code (as defined herein) (in such capacity, together with its successors in
such capacity, the "Securities Intermediary"), and JPMorgan Chase Bank, not
individually but solely as purchase contract agent and as attorney-in-fact of
the Holders (as defined in the Purchase Contract Agreement) from time to time of
the Securities (as hereinafter defined) (in such capacity, together with its
successors in such capacity, the "Purchase Contract Agent") under the Purchase
Contract Agreement (as hereinafter defined).

                                    RECITALS

         WHEREAS, the Company and the Purchase Contract Agent are parties to the
Purchase Contract Agreement, dated as of the date hereof (as modified and
supplemented and in effect from time to time, the "Purchase Contract
Agreement"), pursuant to which there may be issued 8,855,000 equity units of the
Company, each having a stated amount of $50 (the "Stated Amount") per equity
unit; and

         WHEREAS, the equity units will initially consist of 8,855,000 units
(referred to as "Corporate Units") with a stated amount, per Corporate Unit,
equal to the Stated Amount. Each Corporate Unit will initially consist of (a) a
stock purchase contract (the "Purchase Contract") pursuant to which the Holder
will purchase from the Company not later than August 16, 2005 (the "Purchase
Contract Settlement Date"), for an amount in cash equal to the Stated Amount, a
number of newly issued shares of common stock, without par value (the "Common
Stock"), of the Company equal to the Settlement Rate and (b) either beneficial
ownership of a Note (as defined below) or, following a Successful Initial
Remarketing, a Successful Secondary Remarketing or a Tax Event Redemption, the
Applicable Ownership Interest in the Treasury Portfolio; and

         WHEREAS, if Holders of Corporate Units substitute collateral as
contemplated by Section 4.1 hereof, each unit created thereby (collectively
referred to as "Treasury Units" and, together with the Corporate Units, the
"Securities") will initially consist of (a) a Purchase Contract pursuant to
which the Holders will purchase from the Company not later than the Purchase
Contract Settlement Date, for an amount in cash equal to the Stated Amount, a
number of newly issued shares of Common Stock of the Company, equal to the
Settlement Rate, and (b) a 1/20, or 5.0%, undivided beneficial ownership
interest in a zero-coupon U.S. Treasury security (CUSIP No. 912803AG8) having a
principal amount at maturity equal to $1,000 and maturing on August 15, 2005 (a
"Treasury Security"); and

                                       2
<PAGE>

         WHEREAS, pursuant to the terms of the Indenture (as defined below), the
Company will issue $442,750,000 aggregate principal amount of the Company's
5.25% senior notes due August 16, 2007 (the "Notes"), each having a principal
amount equal to $50; and

         WHEREAS, pursuant to the terms of the Purchase Contract Agreement and
the Purchase Contracts, the Holders from time to time of the Securities have
irrevocably authorized the Purchase Contract Agent, as attorney-in-fact of such
Holders, among other things, to execute and deliver this Agreement on behalf of
such Holders and to grant the Pledge provided hereby of the Notes, any
Applicable Ownership Interest in the Treasury Portfolio and the Pledged Treasury
Securities to secure each Holder's obligations under the related Purchase
Contracts, as provided herein and subject to the terms hereof; and

         WHEREAS, upon such Pledge, the Pledged Notes or the Pledged Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, and the
Pledged Treasury Securities will be beneficially owned by the Holders but will
be owned of record by the Purchase Contract Agent or the Securities Intermediary
subject to the Pledge hereunder.

         NOW THEREFORE, in consideration of the foregoing premises, the Company,
the Collateral Agent, the Securities Intermediary, the Custodial Agent and the
Purchase Contract Agent, on its own behalf and as attorney-in-fact for, and on
behalf of, the Holders from time to time of the Securities, agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

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

         (a)      the terms defined in this Article have the meanings assigned
                  to them in this Article and include the plural as well as the
                  singular;

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

         (c)      initially capitalized terms used but not otherwise defined
                  herein have the meanings assigned to such terms in the
                  Purchase Contract Agreement; and

         (d)      the following terms have the meanings assigned to them in this
                  subsection (d):

                                       3
<PAGE>

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

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

         "Business Day" means any day other than a Saturday, a Sunday or any
other day on which banking institutions in The City of New York (in the State of
New York) are permitted or required by any applicable law to close.

         "Cash" means any coin or currency of the United States as at the time
shall be legal tender for payment of public and private debts.

         "Code" has the meaning specified in Section 6.1 hereof.

         "Collateral" has the meaning specified in Section 2.1 hereof.

         "Collateral Account" means the segregated securities account (number
188410) maintained at BNY Midwest Trust Company in the name of "JPMorgan Chase
Bank, as Purchase Contract Agent on behalf of the holders of certain securities
of The St. Paul Companies, Inc., Collateral Account subject to the security
interest of BNY Midwest Trust Company, as Collateral Agent, for the benefit of
The St. Paul Companies, Inc. as pledgee" and any successor account.

         "Collateral Agent" has the meaning specified in the first paragraph of
this Agreement.

         "Common Stock" has the meaning specified in the recitals of this
Agreement.

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

         "Corporate Unit" has the meaning specified in the recitals of this
Agreement.

         "Custodial Agent" has the meaning specified in the first paragraph of
this Agreement.

         "Entitlement Orders" has the meaning specified in Section 8-102(a)(8)
of the Code.

         "Financial Asset" has the meaning specified in Section 8-102(a)(9) of
the Code.

         "Intermediary" means any entity that in the ordinary course of its
business maintains securities accounts for others and is acting in that
capacity.

                                       4
<PAGE>

         "Notes" has the meaning specified in the recitals of this Agreement.

         "Note Trustee" means JPMorgan Chase Bank, as trustee under the
Indenture until a successor is appointed thereunder, and thereafter means such
successor trustee.

         "Permitted Investments" means any one of the following which shall
mature not later than the next succeeding Business Day: (i) any evidence of
indebtedness with an original maturity of 365 days or less issued, or directly
and fully guaranteed or insured, by the United States of America or any agency
or instrumentality thereof (provided that the full faith and credit of the
United States of America is pledged in support thereof or such indebtedness
constitutes a general obligation of it); (ii) deposits, certificates of deposit
or acceptances with an original maturity of 365 days or less of any institution
which is a member of the United States Federal Reserve System having combined
capital and surplus and undivided profits of not less than $200.0 million at the
time of deposit; (iii) investments with an original maturity of 365 days or less
of any Person that is fully and unconditionally guaranteed by a bank referred to
in clause (ii); (iv) investments in commercial paper, other than commercial
paper issued by the Company or its affiliates, of any corporation incorporated
under the laws of the United States or any state thereof, which commercial paper
has a rating at the time of purchase at least equal to "A-1" by Standard &
Poor's Ratings Services ("S&P") or at least equal to "P-1" by Moody's Investors
Service, Inc. ("Moody's"); and (v) investments in money market funds registered
under the Investment Company Act of 1940, as amended, rated in the highest
applicable rating category by S&P or Moody's.

         "Person" and "person" means any individual, corporation, limited
liability company, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency or political
subdivision thereof.

         "Pledge" has the meaning specified in Section 2.1 hereof.

         "Pledged Applicable Ownership Interest" has the meaning specified in
Section 2.1 hereof.

         "Pledged Notes" has the meaning specified in Section 2.1 hereof.

         "Pledged Treasury Securities" has the meaning specified in Section 2.1
hereof.

         "Primary Treasury Dealer" means a primary U.S. government securities
dealer in The City of New York (in the State of New York).

         "Proceeds" means all interest, dividends, cash, instruments,
securities, Financial Assets and other property from time to time received,
receivable or otherwise distributed upon the sale, exchange, maturity,
collection or disposition of the Collateral or any proceeds thereof.

                                       5
<PAGE>

         "Purchase Contract" has the meaning specified in the recitals of this
Agreement.

         "Purchase Contract Agent" has the meaning specified in the first
paragraph of this Agreement.

         "Purchase Contract Agreement" has the meaning specified in the recitals
of this Agreement.

         "Purchase Contract Settlement Date" has the meaning specified in the
recitals of this Agreement.

         "Securities" has the meaning specified in the recitals of this
Agreement.

         "Securities Intermediary" has the meaning specified in the first
paragraph of this Agreement.

         "Security Entitlement" has the meaning set forth in Section
8-102(a)(17) of the Code.

         "Separate Notes" means any Notes that are not Pledged Notes.

         "Stated Amount" has the meaning specified in the recitals of this
Agreement.

         "Supplemental Remarketing Agreement" means the Supplemental Remarketing
Agreement, as defined in the Remarketing Agreement.

         "Tax Event Redemption Date" means the date upon which a Tax Event
Redemption is to occur.

         "TRADES" means the Treasury/Reserve Automated Debt Entry System
maintained by the Federal Reserve Bank of New York pursuant to the TRADES
Regulations.

         "TRADES Regulations" means the regulations of the United States
Department of the Treasury, published at 31 C.F.R. Part 357, as amended from
time to time. Unless otherwise defined herein, all terms defined in the TRADES
Regulations are used herein as therein defined.

         "Transfer" means, with respect to the Collateral and in accordance with
the instructions of the Collateral Agent, the Purchase Contract Agent or the
Holder, as applicable:

         (i)      in the case of Collateral consisting of securities which
                  cannot be delivered by book-entry or which the parties agree
                  are to be delivered in physical form, delivery in appropriate
                  physical form to the recipient accompanied by any duly
                  executed instruments of transfer, assignments in blank,

                                       6
<PAGE>

                  transfer tax stamps and any other documents necessary to
                  constitute a legally valid transfer to the recipient;

         (ii)     in the case of Collateral consisting of securities maintained
                  in book-entry form by causing a "securities intermediary" (as
                  defined in Section 8-102(a)(14) of the Code) to (i) credit a
                  "security entitlement" (as defined in Section 8-102(a)(17) of
                  the Code) with respect to such securities to a "securities
                  account" (as defined in Section 8-501(a) of the Code)
                  maintained by or on behalf of the recipient and (ii) to issue
                  a confirmation to the recipient with respect to such credit.
                  In the case of Collateral to be delivered to the Collateral
                  Agent, the Securities Intermediary shall be the securities
                  intermediary and the securities account shall be the
                  Collateral Account.

         "Treasury Securities" has the meaning specified in the recitals of this
Agreement.

         "Treasury Unit" has the meaning specified in the recitals of this
Agreement.

         "Value" with respect to any item of Collateral on any date means, as to
(i) a Note, the principal amount thereof, (ii) Cash, the face amount thereof and
(iii) Treasury Securities, the aggregate principal amount thereof at maturity.

                                   ARTICLE II

                         PLEDGE; CONTROL AND PERFECTION

         Section 2.1 The Pledge. (a) The Holders from time to time as beneficial
owners of the Collateral acting through the Purchase Contract Agent, as their
attorney-in-fact, and the Purchase Contract Agent, as their attorney-in-fact,
each hereby pledges and grants to the Collateral Agent, for the benefit of the
Company, as collateral security for the performance when due (whether at stated
settlement date or earlier settlement date) by such Holders of their respective
obligations under the Purchase Contracts, a security interest in and to, and a
first lien upon, all of the right, title and interest of the Purchase Contract
Agent and such Holders in:

                           (i) (A) the Notes, Treasury Securities and any
                  Applicable Ownership Interest in the Treasury Portfolio
                  constituting a part of the Securities, (B) any Treasury
                  Securities delivered in exchange for any Notes (or, if
                  applicable, the Applicable Ownership Interest in the Treasury
                  Portfolio), and (C) any Notes (or, if applicable, the
                  Applicable Ownership Interest in the Treasury Portfolio)
                  delivered in exchange for any Treasury Securities, in
                  accordance with Article IV hereof, in each case that have been
                  Transferred to or received by the Collateral Agent and not
                  released by the Collateral Agent to such Holders under the
                  provisions of this Agreement;

                                       7
<PAGE>

                           (ii)     payments made by Holders pursuant to Section
                                    4.4 hereof;

                           (iii) the Collateral Account and all securities,
                  Financial Assets, Cash and other property credited thereto and
                  all Security Entitlements related thereto;

                           (iv) the Treasury Portfolio purchased on behalf of
                  the Holders of Corporate Units by the Collateral Agent upon
                  the occurrence of a Successful Initial Remarketing, a
                  Successful Secondary Remarketing or a Tax Event Redemption as
                  provided in Article VI hereof, or otherwise; and

                           (v)      all Proceeds of the foregoing (all of the
                                    foregoing, collectively, the "Collateral").

                  (b) Prior to or concurrently with the execution and delivery
of this Agreement, the Purchase Contract Agent, on behalf of the initial Holders
of the Securities, shall cause the Notes comprising a part of the Corporate
Units to be Transferred to the Collateral Agent for the benefit of the Company
as secured party. Such Notes shall be Transferred by physically delivering such
Notes to the Securities Intermediary indorsed in blank (or accompanied by a bond
power indorsed in blank) and causing the Securities Intermediary to credit the
Collateral Account with such Notes such that the Notes or the Security
Entitlements with respect to such Notes are credited to the Collateral Account.
In the event a Holder of Corporate Units so elects, such Holder may Transfer
Treasury Securities to the Collateral Agent for the benefit of the Company as
provided in Section 4.1 hereof in exchange for the release by the Collateral
Agent on behalf of the Company of Notes or the appropriate Applicable Ownership
Interest in the Treasury Portfolio, as the case may be, with an aggregate
principal amount equal to the aggregate principal amount of the Treasury
Securities so Transferred, in the case of Notes, or with an appropriate
Applicable Ownership Interest (as specified in clause (i) of the definition of
such term) in the Treasury Portfolio equal to the aggregate principal amount in
the Treasury Securities so Transferred, upon notice from the Company to the
Collateral Agent that a Successful Initial Remarketing, a Successful Secondary
Remarketing or a Tax Event Redemption has occurred, to the Purchase Contract
Agent on behalf of such Holder. In the event that a Holder of Treasury Units so
elects, such Holder may Transfer Notes or the appropriate Applicable Ownership
Interest in the Treasury Portfolio to the Collateral Agent for the benefit of
the Company as provided in Section 4.2 hereof in exchange for the release by the
Collateral Agent on behalf of the Company of Treasury Securities with an
aggregate principal amount at maturity equal to the aggregate principal amount
of the Notes or the appropriate Applicable Ownership Interest (as specified in
clause (i) of the definition of such term) in the Treasury Portfolio so
transferred to the Purchase Contract Agent on behalf of such Holder. Treasury
Securities and the appropriate Applicable Ownership Interest in the Treasury
Portfolio, as applicable, shall be Transferred to the Collateral Account
maintained by the Collateral Agent at the Securities Intermediary by book-entry
transfer to the Collateral Account in accordance with the TRADES Regulations and
other applicable law and by the notation

                                       8
<PAGE>

by the Securities Intermediary on its books that a Security Entitlement with
respect to such Treasury Securities or appropriate Applicable Ownership Interest
in the Treasury Portfolio has been credited to the Collateral Account.

                  (c) For purposes of perfecting the Pledge under applicable
law, including, to the extent applicable, the TRADES Regulations or the Uniform
Commercial Code as adopted and in effect in any applicable jurisdiction, the
Collateral Agent shall be the agent of the Company as provided herein. The
pledge and grant of a security interest and first lien provided in this Section
2.1 is herein referred to as the "Pledge" and the Notes, Treasury Securities or
Applicable Ownership Interest subject to the Pledge, excluding any Notes that
are delivered pursuant to Section 6.2 hereof or Treasury Securities or
Applicable Ownership Interest released from the Pledge as provided in Article IV
hereof, are herein referred to as "Pledged Notes," the "Pledged Treasury
Securities," or the "Pledged Applicable Ownership Interest" respectively.
Subject to the Pledge and the provisions of Section 2.2 hereof, the Holders from
time to time shall have full beneficial ownership of the Collateral. Whenever
directed by the Collateral Agent acting on behalf of the Company, the Securities
Intermediary shall have the right to reregister the Notes or any other
securities held in physical form in its name.

                  (d) Except as may be required in order to release Notes in
connection with a Holder's election to convert its investment from Corporate
Units to Treasury Units, or except as otherwise required to release Notes as
specified herein, neither the Collateral Agent nor the Securities Intermediary
shall relinquish physical possession of any certificate evidencing a Note,
Treasury Securities or the Applicable Ownership Interest prior to the
termination of this Agreement, except Notes may be held in any clearing
corporation in an account including only assets of customers of the Collateral
Agent or Securities Intermediary. If it becomes necessary for the Collateral
Agent to relinquish physical possession of a certificate in order to release a
portion of the Notes evidenced thereby from the Pledge, the Collateral Agent
shall use commercially reasonable efforts to obtain physical possession of a
replacement certificate evidencing any Notes remaining subject to the Pledge
hereunder registered to it or indorsed in blank (or accompanied by a stock or
bond power indorsed in blank) within fifteen days of the date it relinquished
possession. The Collateral Agent shall promptly notify the Company of the
Collateral Agent's failure to obtain possession of any such replacement
certificate as required hereby.

         Section 2.2 Control and Perfection. (a) In connection with the Pledge
granted in Section 2.1 hereof, and subject to the other provisions of this
Agreement, the Holders from time to time acting through the Purchase Contract
Agent, as their attorney-in-fact, and the Purchase Contract Agent each hereby
authorizes and directs the Securities Intermediary (without the necessity of
obtaining the further consent of the Purchase Contract Agent or any of the
Holders), and the Securities Intermediary agrees, to comply with and follow any
instructions and Entitlement Orders that the Collateral Agent on behalf of the
Company may give in writing with respect to the Collateral Account, the
Collateral credited thereto and any Security Entitlements with respect to any
thereof. In

                                       9
<PAGE>

the event the Securities Intermediary receives from the Holders or the Purchase
Contract Agent Entitlement Orders that conflict with Entitlement Orders received
from the Collateral Agent, the Securities Intermediary shall follow the
Entitlement Orders received from the Collateral Agent. Such instructions and
Entitlement Orders may, without limitation, direct the Securities Intermediary
to transfer, redeem, sell, liquidate, assign, deliver or otherwise dispose of
the Notes, the Treasury Securities, any Applicable Ownership Interest in the
Treasury Portfolio, and any Security Entitlements with respect thereto and to
pay and deliver any income, proceeds or other funds derived therefrom to the
Company. The Holders from time to time acting through the Purchase Contract
Agent hereby further authorize and direct the Collateral Agent, as agent of the
Company, to itself issue instructions and Entitlement Orders, and to otherwise
take action, with respect to the Collateral Account, the Collateral credited
thereto and any Security Entitlements with respect thereto, pursuant to the
terms and provisions hereof, all without the necessity of obtaining the further
consent of the Purchase Contract Agent or any of the Holders. The Collateral
Agent shall be the agent of the Company and shall act only as directed in
writing by the Company. Without limiting the generality of the foregoing, the
Collateral Agent shall issue Entitlement Orders to the Securities Intermediary
when and as directed by the Company.

                  (b)      The Collateral Agent hereby confirms and agrees that:

                           (i) all securities or other property underlying any
                  Financial Assets credited to the Collateral Account shall be
                  registered in the name of the Collateral Agent, indorsed to
                  the Collateral Agent or in blank or credited to another
                  securities account maintained in the name of the Collateral
                  Agent and in no case will any Financial Asset credited to the
                  Collateral Account be registered in the name of the Purchase
                  Contract Agent, the Company or any Holder, payable to the
                  order of, or specially indorsed to, the Purchase Contract
                  Agent, the Company or any Holder except to the extent the
                  foregoing have been specially indorsed to the Collateral Agent
                  or in blank;

                           (ii) all property delivered to the Collateral Agent
                  pursuant to this Pledge Agreement (including, without
                  limitation, any Notes, Treasury Securities or any Applicable
                  Ownership Interest in the Treasury Portfolio) will be promptly
                  credited on the books of the Securities Intermediary to the
                  Collateral Account;

                           (iii) the Collateral Account is an account to which
                  Financial Assets are or may be credited, and the Securities
                  Intermediary shall, subject to the terms of this Agreement,
                  treat the Collateral Agent as entitled to exercise the rights
                  of any Financial Asset credited to the Collateral Account;

                           (iv) the Securities Intermediary has not entered
                  into, and until the termination of this Agreement will not
                  enter into, any agreement with any

                                       10
<PAGE>

                  other person relating to the Collateral Account and/or any
                  Financial Assets credited thereto pursuant to which it has
                  agreed to comply with Entitlement Orders of such other person;
                  and

                           (v) the Securities Intermediary has not entered into,
                  and until the termination of this Agreement will not enter
                  into, any agreement with the Company, any Holder or the
                  Purchase Contract Agent purporting to limit or condition the
                  obligation of the Securities Intermediary to comply with
                  Entitlement Orders as set forth in this Section 2.2 hereof.

                  (c) The Securities Intermediary hereby agrees that each item
of property (whether investment property, financial asset, security, instrument
or Cash) credited to the Collateral Account shall be treated as a Financial
Asset.

                  (d) In the event of any conflict between this Agreement (or
any portion thereof) and any other agreement now existing or hereafter entered
into, the terms of this Agreement shall prevail.

                  (e) The Purchase Contract Agent hereby irrevocably constitutes
and appoints the Collateral Agent and the Company, with full power of
substitution, as the Purchase Contract Agent's attorneys-in-fact to take on
behalf of, and in the name, place and stead of, the Purchase Contract Agent and
the Holders, any action necessary or desirable to perfect and to keep perfected
the security interest in the Collateral referred to in Section 2.1 hereof. The
grant of such power-of-attorney shall not be deemed to require of the Collateral
Agent any specific duties or obligations not otherwise assumed by the Collateral
Agent hereunder, it being hereby acknowledged and agreed that the Collateral
Agent shall have no duty to file or record any documents in any jurisdiction for
purposes of perfecting or maintaining the security interest in the Collateral
except those that it shall be directed in writing to execute by the Company.

                                   ARTICLE III

                       DISTRIBUTIONS ON PLEDGED COLLATERAL

         So long as the Purchase Contract Agent is the registered owner of the
Pledged Notes, Pledged Treasury Securities or Pledged Applicable Ownership
Interest in the Treasury Portfolio, it shall receive all payments thereon. If
the Pledged Notes are reregistered, such that the Collateral Agent becomes the
registered holder, all payments of principal on the Pledged Notes or, if
applicable, the Pledged Treasury Securities or Pledged Applicable Ownership
Interest (as specified in clause (i) of the definition of Applicable Ownership
Interest) in the Treasury Portfolio, or interest payments on the Pledged Notes
or on the appropriate Pledged Applicable Ownership Interest (as specified in
clause (ii) of the definition of Applicable Ownership Interest) in the Treasury
Portfolio, as the case may be, and all payments of the principal of, or cash
distributions on, any Pledged Treasury Securities received by the Collateral
Agent that are properly payable hereunder, shall be paid by the Collateral Agent
by wire transfer in same day funds:

                                       11
<PAGE>

         (i)      in the case of (A) interest payments with respect to the
                  Pledged Notes or the appropriate Pledged Applicable Ownership
                  Interest (as specified in clause (ii) of the definition of
                  Applicable Ownership Interest) in the Treasury Portfolio, as
                  the case may be, and (B) any payments of principal or, if
                  applicable, the appropriate Applicable Ownership Interest (as
                  specified in clause (i) of the definition of such term) in the
                  Treasury Portfolio with respect to any Notes or the
                  appropriate Applicable Ownership Interest in the Treasury
                  Portfolio, as the case may be, that have been released from
                  the Pledge pursuant to Section 4.1 or 4.3 hereof, to the
                  Purchase Contract Agent, for the benefit of the relevant
                  Holders of Securities, to the account designated by the
                  Purchase Contract Agent for such purpose, no later than 11:00
                  a.m., New York City time, on the Business Day such payment is
                  received by the Collateral Agent (provided that in the event
                  such payment is received by the Collateral Agent on a day that
                  is not a Business Day or after 10:30 a.m., New York City time,
                  on a Business Day, then such payment shall be made no later
                  than 10:30 a.m., New York City time, on the next succeeding
                  Business Day);

         (ii)     in the case of any principal payments with respect to any
                  Pledged Treasury Securities that have been released from the
                  Pledge pursuant to Section 4.2 or 4.3 hereof, to the Purchase
                  Contract Agent, for the benefit of the Holders of the Treasury
                  Units, to the accounts designated by the Purchase Contract
                  Agent in writing for such purpose, no later than 11:00 a.m.,
                  New York City time, on the Business Day such payment is
                  received by the Collateral Agent (provided that in the event
                  such payment is received by the Collateral Agent on a day that
                  is not a Business Day or after 10:30 a.m., New York City time,
                  on a Business Day, then such payment shall be made no later
                  than 10:30 a.m., New York City time, on the next succeeding
                  Business Day); and

         (iii)    in the case of payments of the Proceeds of any Pledged Notes
                  or the appropriate Pledged Applicable Ownership Interest in
                  the Treasury Portfolio, as the case may be, or the Proceeds of
                  any Pledged Treasury Securities, to the Company on the
                  Purchase Contract Settlement Date to the extent of the
                  Purchase Price in accordance with the procedure set forth in
                  Section 4.6(a) or 4.6(b) hereof, in full satisfaction of the
                  respective obligations of the Holders under the related
                  Purchase Contracts and, to the extent such Proceeds exceed the
                  Purchase Price, to the Purchase Contract Agent for the benefit
                  of the Holders.

         All payments received by the Purchase Contract Agent as provided herein
shall be applied by the Purchase Contract Agent pursuant to the provisions of
the Purchase Contract Agreement. If, notwithstanding the foregoing, the Purchase
Contract Agent shall receive any payments of the principal amount of the Notes
or, if applicable, the appropriate Applicable Ownership Interest (as specified
in clause (i) of the definition of

                                       12
<PAGE>

such term) or any amounts referred to in Section 4.3 of the Purchase Contract
Agreement on account of any Pledged Note or the appropriate Pledged Applicable
Ownership Interest in the Treasury Portfolio, as applicable, or a Holder of
Treasury Units shall receive any payments of principal on account of any
Treasury Securities that, at the time of such payment, are Pledged Treasury
Securities, the Purchase Contract Agent or such Holder shall hold the same as
trustee of an express trust for the benefit of the Company or, in the case of
amounts referred to in Section 4.3 of the Purchase Contract Agreement, for the
benefit of the Collateral Agent for and on behalf of the Company (and promptly
deliver the same over to the Company or the Collateral Agent, as applicable) for
application to the obligations of the Holders under the related Purchase
Contracts, and the Holders shall acquire no right, title or interest in any such
payments of principal, or other amounts referred to in this Section, so
received.

                                   ARTICLE IV

             SUBSTITUTION, RELEASE, REPLEDGE AND SETTLEMENT OF NOTES

         Section 4.1 Substitution for Notes and the Creation of Treasury Units.
At any time prior to the seventh Business Day immediately preceding the Purchase
Contract Settlement Date (or on or prior to the second Business Day immediately
preceding the Purchase Contract Settlement Date, if a Tax Event Redemption, a
Successful Initial Remarketing or a Successful Secondary Remarketing has
occurred), a Holder of Corporate Units shall have the right to create Treasury
Units by substituting Treasury Securities for the Pledged Notes (or, if a Tax
Event Redemption, a Successful Initial Remarketing or a Successful Secondary
Remarketing has occurred, the appropriate Pledged Applicable Ownership Interest
(as specified in clause (i) of the definition of Applicable Ownership Interest)
in the Treasury Portfolio) securing such Holder's obligations under the Purchase
Contracts comprising a part of its Corporate Units in integral multiples of 20
Corporate Units by (a) Transferring to the Collateral Agent Treasury Securities
having a Value equal to the aggregate principal amount of the Pledged Notes (or
appropriate Pledged Applicable Ownership Interest in the Treasury Portfolio, as
the case may be), to be released and (b) transferring the related Corporate
Units to the Purchase Contract Agent, accompanied by a notice, substantially in
the form of Exhibit B hereto, to the Purchase Contract Agent stating that such
Holder has Transferred the relevant Treasury Securities to the Collateral Agent
pursuant to clause (a) above (stating the Value of the Treasury Securities
Transferred by such Holder) and requesting that the Purchase Contract Agent
instruct the Collateral Agent to release from the Pledge the Pledged Notes or
the appropriate Pledged Applicable Ownership Interest in the Treasury Portfolio,
as the case may be, related to such Corporate Units. The Purchase Contract Agent
shall instruct the Collateral Agent pursuant to the form provided in Exhibit A;
provided that if a Tax Event Redemption, a Successful Initial Remarketing or a
Successful Secondary Remarketing has occurred and the Treasury Portfolio has
become a component of the Corporate Units, Holders of Corporate Units may make
such substitution only in integral multiples of 32,000 Corporate Units at any
time on or prior to the second Business Day immediately preceding the Purchase
Contract Settlement Date.

                                       13
<PAGE>

Notwithstanding the foregoing, a Holder of Corporate Units may not create
Treasury Units by substituting the Treasury Securities for the Pledged Notes
pursuant to this Section 4.1 during the period commencing on the fourth Business
Day immediately preceding the Initial Remarketing Date (or, upon a Failed
Initial Remarketing, the Secondary Remarketing Date) and continuing through the
fourth Business Day following the Initial Remarketing Date (or, upon a Failed
Initial Remarketing, following the Secondary Remarketing Date). Without limiting
the generality of any other provision herein, in no event shall the Collateral
Agent have any liability for acting in accordance with instructions in the form
provided in Exhibit A. Upon receipt of Treasury Securities from a Holder of
Corporate Units and the related instruction from the Purchase Contract Agent
and, if applicable, notice from the Company that a Successful Initial
Remarketing, a Successful Secondary Remarketing or a Tax Event Redemption has
occurred, the Collateral Agent shall release the Pledged Notes or the
appropriate Pledged Applicable Ownership Interest in the Treasury Portfolio, as
the case may be, and shall promptly Transfer to the securities account specified
by the Purchase Contract Agent such Pledged Notes or the appropriate Pledged
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,
free and clear of any lien, pledge or security interest created hereby. All
items Transferred and/or substituted by any Holder pursuant to this Section 4.1,
Section 4.2 or any other Section of this Agreement shall be Transferred and/or
substituted free and clear of all liens, security interests, claims and
encumbrances.

         Section 4.2 Substitution of Treasury Securities and the Recreation of
Corporate Units. At any time prior to the seventh Business Day immediately
preceding the Purchase Contract Settlement Date (or on or prior to the second
Business Day immediately preceding the Purchase Contract Settlement Date, if a
Tax Event Redemption, a Successful Initial Remarketing or a Successful Secondary
Remarketing has occurred), a Holder of Treasury Units shall have the right to
recreate Corporate Units in integral multiples of 20 Treasury Units by (a)
Transferring to the Collateral Agent Notes having a Value equal to the Value of
the Pledged Treasury Securities to be released (or the appropriate Applicable
Ownership Interest in the Treasury Portfolio with the Applicable Ownership
Interest (as specified in clause (i) of the definition of such term) having
Value equal to the Value of the Pledged Treasury Securities to be released) and
(b) delivering the related Treasury Units to the Purchase Contract Agent,
accompanied by a notice, substantially in the form of Exhibit B hereto, to the
Purchase Contract Agent stating that such Holder has transferred the relevant
amount of Notes (or the appropriate Applicable Ownership Interest of the
Treasury Portfolio, as the case may be) to the Collateral Agent pursuant to
clause (a) above and requesting that the Purchase Contract Agent instruct the
Collateral Agent to release from the Pledge the Pledged Treasury Securities
underlying such Treasury Units. The Purchase Contract Agent shall instruct the
Collateral Agent in the form provided in Exhibit A; provided that if a Tax Event
Redemption, a Successful Initial Remarketing or a Successful Secondary
Remarketing has occurred and the Treasury Portfolio has become a component of
the Corporate Units, Holders of Treasury Units may make such substitution only
in integral multiples of 32,000 Treasury Units, at any time on or prior to the
second Business Day immediately preceding the Purchase Contract Settlement Date.
Notwithstanding the foregoing, a

                                       14
<PAGE>

Holder of Treasury Units may not recreate Corporate Units pursuant to this
Section 4.2 during the period commencing on the fourth Business Day immediately
preceding the Initial Remarketing Date (or, upon a Failed Initial Remarketing,
the Secondary Remarketing Date) and continuing through the fourth Business Day
following the Initial Remarketing Date (or, upon a failed Initial Remarketing,
the Secondary Remarketing Date). Without limiting the generality of any other
provision herein, in no event shall the Collateral Agent have any liability for
acting in accordance with instructions in the form provided in Exhibit A. Upon
receipt of the Notes or the appropriate Applicable Ownership Interest in the
Treasury Portfolio, as the case may be, from such Holder and the instruction
from the Purchase Contract Agent, the Collateral Agent shall release the
Treasury Securities having a corresponding aggregate principal amount from the
Pledge and shall promptly Transfer such Treasury Securities, free and clear of
any lien, pledge or security interest created hereby, to the Purchase Contract
Agent.

         Section 4.3 Termination Event. Upon receipt by the Collateral Agent of
written notice from the Company or the Purchase Contract Agent that there has
occurred a Termination Event, the Collateral Agent shall release all Collateral
from the Pledge and shall promptly Transfer any Pledged Notes (or the Pledged
Applicable Ownership Interest in the Treasury Portfolio if the Company has
notified the Collateral Agent that a Tax Event Redemption, a Successful Initial
Remarketing or a Successful Secondary Remarketing has occurred) and Pledged
Treasury Securities to the Purchase Contract Agent for the benefit of the
Holders of the Corporate Units and the Treasury Units, respectively, free and
clear of any lien, pledge or security interest or other interest created hereby.

         If such Termination Event shall result from the Company's becoming a
debtor under the Bankruptcy Code, and if the Collateral Agent shall for any
reason fail promptly to effectuate the release and Transfer of all Pledged
Notes, the Treasury Portfolio or of the Pledged Treasury Securities, as the case
may be, as provided by this Section 4.3, the Purchase Contract Agent shall:

                  (i) use reasonable best efforts to obtain an opinion of a
         nationally recognized law firm reasonably acceptable to the Collateral
         Agent to the effect that, as a result of the Company's being the debtor
         in such a bankruptcy case, the Collateral Agent will not be prohibited
         from releasing or Transferring the Collateral as provided in this
         Section 4.3, and shall deliver such opinion to the Collateral Agent
         within ten days after the occurrence of such Termination Event, and if
         (y) the Purchase Contract Agent shall be unable to obtain such opinion
         within ten days after the occurrence of such Termination Event or (z)
         the Collateral Agent shall continue, after delivery of such opinion, to
         refuse to effectuate the release and Transfer of all Pledged Notes, the
         Pledged Applicable Interest in the Treasury Portfolio or the Pledged
         Treasury Securities, as the case may be, as provided in this Section
         4.3, then the Purchase Contract Agent shall within fifteen days after
         the occurrence of such Termination Event commence an action or
         proceeding in the court with jurisdiction of the Company's case under

                                       15
<PAGE>

         the Bankruptcy Code seeking an order requiring the Collateral Agent to
         effectuate the release and transfer of all Pledged Notes, the Pledged
         Applicable Interest in the Treasury Portfolio or the Pledged Treasury
         Securities, as the case may be, as provided by this Section 4.3 or

                  (ii) commence an action or proceeding like that described
         above within ten days after the occurrence of such Termination Event.

         Section 4.4 Cash Settlement; Put Option. (a) Upon receipt by the
Collateral Agent of (i) a notice from the Purchase Contract Agent promptly after
the receipt by the Purchase Contract Agent of notice that a Holder of Corporate
Units has elected, in accordance with the procedures specified in Section
5.5(a)(i) of the Purchase Contract Agreement, to settle its Purchase Contract
with Cash and (ii) payment of the Purchase Price by such Holder on or prior to
11:00 a.m., New York City time, on the Business Day immediately preceding the
Purchase Contract Settlement Date, in lawful money of the United States by
certified or cashiers' check or wire transfer in immediately available funds
payable to or upon the order of the Company, then the Collateral Agent shall, at
the written direction of the Company, promptly invest any Cash received from a
Holder in connection with a Cash Settlement in Permitted Investments. Upon
receipt of the proceeds upon the maturity of the Permitted Investments on the
Purchase Contract Settlement Date, the Collateral Agent shall pay the portion of
such proceeds and deliver any certified or cashiers' checks received and any
funds so wired, in an aggregate amount equal to the Purchase Price, to the
Company on the Purchase Contract Settlement Date, and shall distribute any funds
in respect of the interest earned from the Permitted Investments to the Purchase
Contract Agent for payment to the relevant Holders.

                  (b) If a Failed Final Remarketing has occurred, each Holder of
Notes shall have a Put Option, as described in Section 5.5(c) of the Purchase
Contract Agreement, giving each Holder the right to put the Notes to the Company
on the Put Option Settlement Date at a repayment price equal to the principal
amount of the Notes plus an amount equal to any accrued and unpaid interest
thereon to the date of payment. If a Holder has exercised the Put Option but has
not otherwise settled the Purchase Contracts in cash by the close of business on
the Business Day immediately prior to the Purchase Contract Settlement Date, the
put price will be applied by the Collateral Agent, in accordance with the terms
hereof, to satisfy in full the obligations of the Holder to pay the Purchase
Price for the shares of Common Stock under the related Purchase Contracts on the
Purchase Contract Settlement Date.

                  (c) Unless a Tax Event Redemption, a Successful Initial
Remarketing or a Successful Secondary Remarketing has occurred, if a Holder of
Corporate Units fails to notify the Purchase Contract Agent of its intention to
make a Cash Settlement in accordance with Section 5.5(a)(i) of the Purchase
Contract Agreement, such failure shall constitute an event of default under the
Purchase Contract Agreement and hereunder, and the Holder shall be deemed to
have consented to the disposition of the Pledged Notes pursuant to the
remarketing as described in Section 5.5(b) of the Purchase Contract

                                       16
<PAGE>

Agreement, which is incorporated herein by reference. If a Holder of Corporate
Units does notify the Purchase Contract Agent as provided in Section 5.5(a)(i)
of the Purchase Contract Agreement of its intention to pay the Purchase Price in
cash, but fails to make such payment as required by Section 5.5(a)(ii) of the
Purchase Contract Agreement, the Pledged Notes of such a Holder will not be
remarketed but instead the Collateral Agent, for the benefit of the Company,
will exercise its rights as a secured party with respect to such Pledged Notes
at the direction of the Company to retain or dispose of the Collateral in
accordance with applicable law. In addition, in the event of a Failed Final
Remarketing as described in Section 5.5(b) of the Purchase Contract Agreement,
unless such Holder shall have duly exercised its Put Option, such Failed Final
Remarketing shall constitute an additional event of default hereunder by such
Holder and the Collateral Agent, for the benefit of the Company, will also
exercise its rights as a secured party with respect to such Pledged Notes at the
direction of the Company to retain or dispose of the Collateral in accordance
with applicable law.

         Section 4.5 Early Settlement. Upon written notice to the Collateral
Agent by the Purchase Contract Agent that one or more Holders of Securities have
elected to effect Early Settlement of their respective obligations under the
Purchase Contracts forming a part of such Securities in accordance with the
terms of the Purchase Contracts and the Purchase Contract Agreement (setting
forth the number of such Purchase Contracts as to which such Holders have
elected to effect Early Settlement), and that the Purchase Contract Agent has
received from such Holders, and paid to the Company as confirmed in writing by
the Company, the related Early Settlement Amounts pursuant to the terms of the
Purchase Contracts and the Purchase Contract Agreement and that all conditions
to such Early Settlement have been satisfied, then the Collateral Agent shall
release from the Pledge, (a) Pledged Notes or the appropriate Pledged Applicable
Ownership Interest in the Treasury Portfolio in the case of a Holder of
Corporate Units or (b) Pledged Treasury Securities in the case of a Holder of
Treasury Units, as the case may be, in each case with an aggregate principal
amount, as the case may be, equal to the product of (i) the Stated Amount times
(ii) the number of such Purchase Contracts as to which such Holders have elected
to effect Early Settlement and shall Transfer all such Pledged Notes, the
appropriate Pledged Applicable Ownership Interest in the Treasury Portfolio or
the Pledged Treasury Securities, as the case may be, free and clear of the
Pledge created hereby, to the Purchase Contract Agent for the benefit of such
Holders.

         Section 4.6 Application of Proceeds; Settlement. (a) In the event a
Holder of Corporate Units (unless a Tax Event Redemption, a Successful Initial
Remarketing or a Successful Secondary Remarketing has occurred) has not elected
to make an effective Cash Settlement by notifying the Purchase Contract Agent
(with a copy to the Collateral Agent) in the manner provided for in Section
5.5(a)(i) in the Purchase Contract Agreement and has not made an Early
Settlement of the Purchase Contracts underlying its Corporate Units, such Holder
shall be deemed to have elected to pay for the shares of Common Stock to be
issued under such Purchase Contracts from the Proceeds of the related Pledged
Notes. The Collateral Agent shall, by 10:00 a.m., New York City time, on the
fourth Business Day immediately preceding the Purchase Contract Settlement

                                       17
<PAGE>

Date, without any instruction from such Holder of Corporate Units, present the
related Pledged Notes to the Remarketing Agent for remarketing. Upon receiving
such Pledged Notes, the Remarketing Agent, pursuant to the terms of the
Remarketing Agreement and the Supplemental Remarketing Agreement (if any), will
use its reasonable best efforts to remarket such Pledged Notes on the Final
Remarketing Date at a price of 100.5% of the aggregate Value of such Pledged
Notes, provided that such remarketing will not be considered to have failed so
long as the Remarketing Agent obtains at least 100% of the aggregate principal
amount of such Pledged Notes on the Final Remarketing Date. After deducting as
the Remarketing Fee an amount not exceeding 25 basis points (0.25%) of the
aggregate Value of the remarketed Pledged Notes from any amount of such Proceeds
in excess of the aggregate Value of the remarketed Pledged Notes, the
Remarketing Agent will remit the entire amount of the Proceeds of such
remarketing to the Collateral Agent. On the Purchase Contract Settlement Date,
the Collateral Agent shall remit to the Company that portion of the Proceeds
from such remarketing equal to the aggregate Value of such remarketed Pledged
Notes to satisfy in full the obligations of such Holders of Corporate Units to
pay the Purchase Price to purchase the shares of Common Stock under the related
Purchase Contracts. The remaining portion of such Proceeds, if any, shall be
remitted by the Collateral Agent to the Purchase Contract Agent for payment to
such Holders of Corporate Units. If the Remarketing Agent advises the Collateral
Agent in writing that it cannot remarket the related Pledged Notes of such
Holders of Corporate Units at a price not less than 100% of the aggregate Value
of such Pledged Notes or if the remarketing shall not have occurred because a
condition precedent to the remarketing shall not have been fulfilled, thus
resulting in a Failed Final Remarketing and an event of default under the
Purchase Contract Agreement and hereunder, the Collateral Agent, for the benefit
of the Company will, at the written direction of the Company, retain or dispose
of the Pledged Notes in accordance with applicable law and satisfy in full, from
any such disposition or retention, such Holder's obligation to pay the Purchase
Price for the shares of Common Stock under the related Purchase Contracts.

                  (b) In the event a Holder of Treasury Units or Corporate Units
(if a Tax Event Redemption, a Successful Initial Remarketing or a Successful
Secondary Remarketing has occurred) has not made an Early Settlement of the
Purchase Contracts underlying its Treasury Units or Corporate Units, as the case
may be, such Holder shall be deemed to have elected to pay for the shares of
Common Stock to be issued under such Purchase Contracts from the Proceeds of the
related Pledged Treasury Securities or the appropriate Pledged Applicable
Ownership Interest (as specified in clause (i) of the definition of Applicable
Ownership Interest) in the Treasury Portfolio, as the case may be. On the
Business Day immediately prior to the Purchase Contract Settlement Date, the
Collateral Agent shall, at the written direction of the Purchase Contract Agent,
which written direction shall be furnished to the Collateral Agent prior to
11:30 a.m., New York City time, invest the Cash proceeds of the maturing Pledged
Treasury Securities or the maturing appropriate Pledged Applicable Ownership
Interest (as specified in clause (ii) of the definition of Applicable Ownership
Interest) in the Treasury Portfolio, as the case may be, in Permitted
Investments; provided that if the Collateral Agent shall not receive any written
direction by 11:30 a.m. New York City time, on such date, the Collateral

                                       18
<PAGE>

Agent shall invest such proceeds in Permitted Investments of the type specified
in clause (v) of the definition of Permitted Investments. Without receiving any
instruction from any such Holder of Treasury Units or Corporate Units, the
Collateral Agent shall remit to the Company that portion of the Proceeds of the
related Pledged Treasury Securities or appropriate Pledged Applicable Ownership
Interest (as specified in clause (i) of the definition of Applicable Ownership
Interest) in the Treasury Portfolio equal to the aggregate Purchase Price of
such Purchase Contracts on the Purchase Contract Settlement Date.

         In the event the sum of the Proceeds from the related Pledged Treasury
Securities or appropriate Pledged Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, and the investment earnings from the investment
in Permitted Investments is in excess of the aggregate Purchase Price of the
Purchase Contracts being settled thereby, the Collateral Agent shall remit such
excess, when received, to the Purchase Contract Agent for the benefit of the
Holders.

                  (c) Pursuant to the Remarketing Agreement and subject to the
terms of the Supplemental Remarketing Agreement (if any), on or prior to the
second Business Day immediately preceding the Initial Remarketing Date, the
Secondary Remarketing Date or the Final Remarketing Date, as applicable, but no
earlier than the Payment Date immediately preceding such date, holders of
Separate Notes may elect to have their Separate Notes remarketed by delivering
their Separate Notes, together with a notice of such election, substantially in
the form of Exhibit C hereto, to the Custodial Agent. The Custodial Agent shall
hold such Separate Notes in an account separate from the Collateral Account. A
holder of Separate Notes electing to have its Separate Notes remarketed will
also have the right to withdraw such election by written notice to the Custodial
Agent, substantially in the form of Exhibit D hereto, on or prior to the second
Business Day immediately preceding the Initial Remarketing Date, the Secondary
Remarketing Date or the Final Remarketing Date, as applicable, upon which notice
the Custodial Agent shall return such Separate Notes to such holder.

         On the Business Day immediately preceding the Initial Remarketing Date,
the Secondary Remarketing Date or the Final Remarketing Date, as applicable, the
Custodial Agent shall notify the Remarketing Agent of the aggregate principal
amount of the Separate Notes to be remarketed and will deliver to the
Remarketing Agent for remarketing all Separate Notes delivered to the Custodial
Agent pursuant to this Section 4.6(c) and not withdrawn pursuant to the terms
hereof prior to such date. After deducting the Remarketing Fee to the extent
permitted under the terms of the Remarketing Agreement, the Remarketing Agent
will remit to the Custodial Agent the remaining portion of the proceeds for the
benefit of such holders. In the event of a Failed Initial Remarketing, a Failed
Secondary Remarketing or a Failed Final Remarketing, as applicable, the
Remarketing Agent will promptly return such Separate Notes to the Custodial
Agent for redelivery to such holders.

                                       19
<PAGE>

                                    ARTICLE V

                              VOTING RIGHTS - NOTES

         The Purchase Contract Agent may exercise, or refrain from exercising,
any and all voting and other consensual rights pertaining to the Pledged Notes
or any part thereof for any purpose not inconsistent with the terms of this
Agreement and in accordance with the terms of the Purchase Contract Agreement;
provided that the Purchase Contract Agent shall not exercise or, as the case may
be, shall not refrain from exercising such right if, in the judgment of the
Company, such action would impair or otherwise have a material adverse effect on
the value of the Pledged Notes, and provided, further, that the Purchase
Contract Agent shall give the Company and the Collateral Agent at least five
days' prior written notice of the manner in which it intends to exercise, or its
reasons for refraining from exercising, any such right. Upon receipt of any
notices and other communications in respect of any Pledged Notes, including
notice of any meeting at which holders of Notes are entitled to vote or
solicitation of consents, waivers or proxies of holders of Notes, the Collateral
Agent shall use reasonable efforts to send promptly to the Purchase Contract
Agent such notice or communication, and as soon as reasonably practicable after
receipt of a written request therefor from the Purchase Contract Agent, execute
and deliver to the Purchase Contract Agent such proxies and other instruments in
respect of such Pledged Notes (in form and substance satisfactory to the
Collateral Agent) as are prepared by the Purchase Contract Agent with respect to
the Pledged Notes.

                                       20
<PAGE>

                                   ARTICLE VI

                    RIGHTS AND REMEDIES; TAX EVENT REDEMPTION

         Section 6.1 Rights and Remedies of the Collateral Agent. (a) In
addition to the rights and remedies specified in Section 4.4 hereof or otherwise
available at law or in equity, after an event of default hereunder, the
Collateral Agent shall have all of the rights and remedies with respect to the
Collateral of a secured party under the Uniform Commercial Code (or any
successor thereto) as in effect in the State of New York from time to time (the
"Code") (whether or not, to the extent permitted by law, the Code is in effect
in the jurisdiction where the rights and remedies are asserted) and the TRADES
Regulations and such additional rights and remedies to which a secured party is
entitled under the laws in effect in any jurisdiction where any rights and
remedies hereunder may be asserted. Wherever reference is made in this Agreement
to any section of the Code, such reference shall be deemed to include a
reference to any provision of the Code, which is a successor to, or amendment
of, such section. Without limiting the generality of the foregoing, such
remedies may include, to the extent permitted by applicable law, (i) retention
of the Pledged Notes or other Collateral in full satisfaction of the Holder's
obligations under the Purchase Contracts or (ii) sale of the Pledged Notes or
other Collateral in one or more public or private sales.

                  (b) Without limiting any rights or powers otherwise granted by
this Agreement to the Collateral Agent, in the event the Collateral Agent is
unable to make payments to the Company on account of the appropriate Applicable
Ownership Interest (as specified in clause (i) of the definition of such term)
of the Treasury Portfolio or on account of principal payments of any Pledged
Treasury Securities as provided in Article III hereof in satisfaction of the
obligations of the Holder of the Securities of which such Pledged Treasury
Securities, or the appropriate Pledged Applicable Ownership Interest (as
specified in clause (i) of the definition of Applicable Ownership Interest) in
the Treasury Portfolio, as applicable, is a part under the related Purchase
Contracts, the inability to make such payments shall constitute an event of
default hereunder and the Collateral Agent shall have and may exercise, with
reference to such Pledged Treasury Securities, or such appropriate Pledged
Applicable Ownership Interest (as specified in clause (i) of the definition of
Applicable Ownership Interest) in the Treasury Portfolio, as applicable, and
such obligations of such Holder, any and all of the rights and remedies
available to a secured party under the Code and the TRADES Regulations after
default by a debtor, and as otherwise granted herein or under any other law.

                  (c) Without limiting any rights or powers otherwise granted by
this Agreement to the Collateral Agent, the Collateral Agent is hereby
irrevocably authorized to receive and collect all payments of (i) principal and
interest on the Pledged Notes, (ii) the principal amount of the Pledged Treasury
Securities, or (iii) the appropriate Pledged Applicable Ownership Interest in
the Treasury Portfolio, subject, in each case, to the provisions of Article III,
and as otherwise granted herein.

                                       21
<PAGE>

                  (d) The Purchase Contract Agent, individually and as
attorney-in-fact for each Holder of Securities, agrees that, from time to time,
upon the written request of the Collateral Agent, the Purchase Contract Agent or
such Holder shall execute and deliver such further documents and do such other
acts and things as are necessary or as the Collateral Agent may reasonably
request in order to maintain the Pledge, and the perfection and priority
thereof, and to confirm the rights of the Collateral Agent hereunder. The
Purchase Contract Agent shall have no liability to any Holder for executing any
documents or taking any such acts requested by the Collateral Agent hereunder,
except for liability for its own negligent act, its own negligent failure to act
or its own willful misconduct.

         Section 6.2 Tax Event Redemption. Upon the occurrence of a Tax Event
Redemption prior to a Successful Initial Remarketing, or, upon a Failed Initial
Remarketing but a Successful Secondary Remarketing or, upon both a Failed
Initial Remarketing and a Failed Secondary Remarketing, prior to the Purchase
Contract Settlement Date, the aggregate Redemption Amount for each Pledged Note,
plus accrued and unpaid interest on such Pledged Note with respect to any
Payment Date on or prior to the Tax Event Redemption Date, shall be delivered to
the Collateral Agent by the Note Trustee on or prior to 12:00 p.m., New York
City time, by check or wire transfer in immediately available funds at such
place and at such account as may be designated by the Collateral Agent in
exchange for the Pledged Notes. In the event the Collateral Agent receives such
aggregate Redemption Amount, and such accrued and unpaid interest (if any), the
Collateral Agent will, at the written direction of the Company, apply such
aggregate Redemption Amount to purchase from the Quotation Agent the Treasury
Portfolio and promptly remit the remaining portion of such aggregate Redemption
Amount and such accrued and unpaid interest (if any) to the Purchase Contract
Agent for payment to the Holders of Corporate Units. The Collateral Agent shall
Transfer the Treasury Portfolio to the Collateral Account to secure the
obligation of all Holders of Corporate Units to purchase shares of Common Stock
of the Company under the Purchase Contracts constituting a part of such
Corporate Units, in substitution for the Pledged Notes. Thereafter the
Collateral Agent shall have such security interests, rights and obligations with
respect to the Treasury Portfolio as it had in respect of the Pledged Notes as
provided in Articles II, III, IV, V and VI hereof, and any reference herein to
the Notes shall be deemed to be a reference to such Treasury Portfolio, and any
reference herein to interest on the Notes shall be deemed to be a reference to
distributions on such Treasury Portfolio.

         Section 6.3 Initial Remarketing and Secondary Remarketing. The
Collateral Agent shall, by 10:00 a.m., New York City time, on the fourth
Business Day immediately preceding each of May 16, 2005, and, in the event of a
Failed Initial Remarketing, July 1, 2005, without any instruction from any
Holder of Corporate Units, present the related Pledged Notes to the Remarketing
Agent for remarketing. Upon receiving such Pledged Notes, the Remarketing Agent,
pursuant to the terms of the Remarketing Agreement, will use its reasonable best
efforts to remarket such Pledged Notes on such date at a price of 100.5% of the
Treasury Portfolio Purchase Price. After deducting as the Remarketing

                                       22
<PAGE>

Fee an amount not exceeding 25 basis points (0.25%) of the Treasury Portfolio
Purchase Price from any amount of such Proceeds in excess of the Treasury
Portfolio Purchase Price, the Remarketing Agent will remit the entire amount of
the Proceeds of such remarketing to the Collateral Agent on or prior to 12:00
p.m., New York City time on May 16, 2005 or July 1, 2005, as the case may be, by
check or wire transfer in immediately available funds at such place and at such
account as may be designated by the Collateral Agent in exchange for the Pledged
Notes. In the event the Collateral Agent receives such Proceeds, the Collateral
Agent will, at the written direction of the Company, apply an amount equal to
the Treasury Portfolio Purchase Price to purchase from the Quotation Agent the
Treasury Portfolio and promptly remit the remaining portion of such Proceeds to
the Purchase Contract Agent for payment to the Holders of Corporate Units. The
Collateral Agent shall Transfer the Treasury Portfolio to the Collateral Account
to secure the obligation of all Holders of Corporate Units to purchase shares of
Common Stock of the Company under the Purchase Contracts constituting a part of
such Corporate Units, in substitution for the Pledged Notes. Thereafter the
Collateral Agent shall have such security interests, rights and obligations with
respect to the Treasury Portfolio as it had in respect of the Pledged Notes as
provided in Articles II, III, IV, V and VI hereof, and any reference herein to
the Notes shall be deemed to be reference to such Treasury Portfolio, and any
reference herein to interest on the Notes shall be deemed to be a reference to
distributions on such Treasury Portfolio.

         Section 6.4 Substitutions. Whenever a Holder has the right to
substitute Treasury Securities, Notes or the appropriate Applicable Ownership
Interest in the Treasury Portfolio, as the case may be, for Collateral held by
the Collateral Agent, such substitution shall not constitute a novation of the
security interest created hereby.

                                   ARTICLE VII

                    REPRESENTATIONS AND WARRANTIES; COVENANTS

         Section 7.1 Representations and Warranties. The Holders from time to
time, acting through the Purchase Contract Agent as their attorney-in-fact (it
being understood that the Purchase Contract Agent shall not be liable for any
representation or warranty made by or on behalf of any of the Holders), each
hereby represents and warrants to the Collateral Agent, which representations
and warranties shall be deemed repeated on each day such Holder Transfers
Collateral, that:

         (a)      such Holder has the power to grant a security interest in and
                  lien on the Collateral;

         (b)      such Holder is the sole beneficial owner of the Collateral
                  and, in the case of Collateral delivered in physical form, is
                  the sole holder of such Collateral and is the sole beneficial
                  owner of, or has the right to Transfer, the Collateral it
                  Transfers to the Collateral Agent, free and clear of any
                  security interest, lien, encumbrance, call, liability to pay
                  money or other

                                       23
<PAGE>

                  restriction other than the security interest and lien granted
                  under Article II hereof;

         (c)      upon the Transfer of the Collateral to the Collateral Account,
                  the Collateral Agent, for the benefit of the Company, will
                  have a valid and perfected first priority security interest
                  therein (assuming that any central clearing operation or any
                  Intermediary or other entity not within the control of such
                  Holder involved in the Transfer of the Collateral, including
                  the Collateral Agent, gives the notices and takes the action
                  required of it hereunder and under applicable law for
                  perfection of that interest and assuming the establishment and
                  exercise of control pursuant to Section 2.2 hereof); and

         (d)      the execution and performance by such Holder of its
                  obligations under this Agreement will not result in the
                  creation of any security interest, lien or other encumbrance
                  on the Collateral other than the security interest and lien
                  granted under Article II hereof or violate any provision of
                  any existing law or regulation applicable to it or of any
                  mortgage, charge, pledge, indenture, contract or undertaking
                  to which it is a party or which is binding on it or any of its
                  assets.

         Section 7.2 Covenants. The Holders from time to time, acting through
the Purchase Contract Agent as their attorney-in-fact (it being understood that
the Purchase Contract Agent shall not be liable for any covenant made by or on
behalf of any of the Holders), each hereby covenants to the Collateral Agent
that for so long as the Collateral remains subject to the Pledge:

         (a)      neither the Purchase Contract Agent nor such Holder will
                  create or purport to create or allow to subsist any mortgage,
                  charge, lien, pledge or any other security interest whatsoever
                  over the Collateral or any part of it other than pursuant to
                  this Agreement; and

         (b)      neither the Purchase Contract Agent nor such Holder will sell
                  or otherwise dispose (or attempt to dispose) of the Collateral
                  or any part of it except for the beneficial interest therein,
                  subject to the pledge hereunder, transferred in connection
                  with the Transfer of the Securities.

                                  ARTICLE VIII

                              THE COLLATERAL AGENT

         Section 8.1 Appointment, Powers and Immunities. The Company hereby
appoints the Collateral Agent as collateral agent and the Collateral Agent
hereby accepts such appointment. The Collateral Agent shall act as Agent for the
Company hereunder with such powers as are specifically vested in the Collateral
Agent by the terms of this Agreement, together with such other powers as are
reasonably incidental thereto. Each

                                       24
<PAGE>

         of the Collateral Agent, the Custodial Agent and the Securities
         Intermediary: (a) shall have no duties or responsibilities except those
         expressly set forth in this Agreement and no implied covenants or
         obligations shall be inferred from this Agreement against any of them,
         nor shall any of them be bound by the provisions of any agreement
         beyond the specific terms hereof; (b) shall not be responsible for any
         recitals contained in this Agreement, or in any certificate or other
         document referred to or provided for in, or received by it under, this
         Agreement, the Securities or the Purchase Contract Agreement, or for
         the value, validity, effectiveness, genuineness, enforceability or
         sufficiency of this Agreement (other than as against the Collateral
         Agent), the Securities or the Purchase Contract Agreement or any other
         document referred to or provided for herein or therein or for any
         failure by the Company or any other Person (except the Collateral
         Agent, the Custodial Agent or the Securities Intermediary, as the case
         may be) to perform any of its obligations hereunder or thereunder or
         for the perfection, priority or, except as expressly required hereby,
         maintenance of any security interest created hereunder (it being
         acknowledged and agreed that the Collateral Agent shall have no duty to
         file or record any documents in any jurisdiction for purposes of
         perfecting or maintaining the security interest in the Collateral
         except those documents provided to it that it shall be directed in
         writing to execute and shall be filed by the Company or the Purchase
         Contract Agent); (c) shall not be required to initiate or conduct any
         litigation or collection proceedings hereunder (except in the case of
         the Collateral Agent, pursuant to directions furnished under Section
         8.2 hereof, subject to Section 8.6 hereof); (d) shall not be
         responsible for any action taken or omitted to be taken by it hereunder
         or under any other document or instrument referred to or provided for
         herein or in connection herewith or therewith, except for its own
         negligence, bad faith or willful misconduct; (e) shall not be required
         to advise any party as to selling or retaining, or taking or refraining
         from taking any action with respect to, the Securities or other
         property deposited hereunder; and (f) shall not be responsible for the
         acts or omissions of any clearing corporation with whom collateral is
         deposited. Notwithstanding anything to the contrary contained herein,
         none of the Collateral Agent, the Custodial Agent or the Securities
         Intermediary shall have any obligation, duty or responsibility to take
         any action unless such action is non-discretionary and explicitly
         required hereunder or in a written direction from the Company or the
         Purchase Contract Agent given in accordance with the terms hereof.
         Subject to the foregoing, during the term of this Agreement, the
         Collateral Agent shall take all reasonable action in connection with
         the safekeeping and preservation of the Collateral hereunder.

         No provision of this Agreement shall require the Collateral Agent, the
Custodial Agent or the Securities Intermediary to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its
duties hereunder. In no event shall the Collateral Agent, the Custodial Agent or
the Securities Intermediary be liable for any amount in excess of the Value of
the Collateral or for any indirect, special, consequential or punitive damages.
Notwithstanding the foregoing, the Collateral Agent, the Custodial Agent, the
Purchase Contract Agent and Securities Intermediary, each in its individual
capacity, hereby waive any right of setoff, bankers lien, liens or perfection
rights as securities intermediary or any counterclaim with respect to any of the
Collateral.

                                       25
<PAGE>

         Section 8.2 Instructions of the Company. The Company shall have the
right, by one or more instruments in writing executed and delivered to the
Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be, to direct the time, method and place of conducting any proceeding
for the realization of any right or remedy available to the Collateral Agent, or
of exercising any power conferred on the Collateral Agent, the Custodial Agent
or the Securities Intermediary, as the case may be, or to direct the taking or
refraining from taking of any action authorized by this Agreement; provided that
(i) such direction shall not conflict with the provisions of any law or of this
Agreement and (ii) the Collateral Agent, the Custodial Agent and the Securities
Intermediary shall be adequately indemnified as provided herein.

         Nothing in this Section 8.2 shall impair the right of the Collateral
Agent in its discretion to take any action or omit to take any action which it
deems proper and which is not inconsistent with such direction.

         Section 8.3 Reliance. Each of the Securities Intermediary, the
Custodial Agent and the Collateral Agent shall be entitled conclusively to rely
upon any certification, order, judgment, opinion, notice or other communication
(including, without limitation, any thereof by telephone, telecopy, telex or
facsimile) believed by it to be genuine and correct and to have been signed or
sent by or on behalf of the proper Person or Persons (without being required to
determine the correctness of any fact stated therein), and upon advice and
statements of legal counsel and other experts selected by the Collateral Agent,
the Custodial Agent or the Securities Intermediary, as the case may be. As to
any matters not expressly provided for by this Agreement, the Collateral Agent,
the Custodial Agent and the Securities Intermediary shall in all cases be fully
protected in acting, or in refraining from acting, hereunder in accordance with
instructions given by the Company in accordance with this Agreement.

         Section 8.4 Rights in other Capacities. The Collateral Agent, the
Custodial Agent and the Securities Intermediary and their affiliates may
(without having to account therefor to the Company) accept deposits from, lend
money to, make their investments in and generally engage in any kind of banking,
trust or other business with the Purchase Contract Agent, any Holder of
Securities and any holder of Separate Notes (and any of their respective
subsidiaries or affiliates) as if it were not acting as the Collateral Agent,
the Custodial Agent or the Securities Intermediary, as the case may be, and the
Collateral Agent, the Custodial Agent and the Securities Intermediary and their
affiliates may accept fees and other consideration from the Purchase Contract
Agent, any Holder of Securities or any holder of Separate Notes without having
to account for the same to the Company; provided that each of the Securities
Intermediary, the Custodial Agent and the Collateral Agent covenants and agrees
with the Company that it shall not accept, receive or permit there to be created
in favor of itself and shall take no affirmative action to permit there to be
created in favor of any other Person, any security interest, lien or other
encumbrance of any kind in or upon the Collateral and the Collateral shall be
segregated or the books and records of the Collateral Agent and not commingled
with any other assets of any such Person.

                                       26
<PAGE>

         Section 8.5 Non-Reliance. None of the Securities Intermediary, the
Custodial Agent or the Collateral Agent shall be required to keep itself
informed as to the performance or observance by the Company, the Purchase
Contract Agent, the Remarketing Agent or any Holder of Securities of this
Agreement, the Purchase Contract Agreement, the Securities or any other document
referred to or provided for herein or therein or to inspect the properties or
books of the Purchase Contract Agent or any Holder of Securities. The Collateral
Agent, the Custodial Agent and the Securities Intermediary shall not have any
duty or responsibility to provide the Company or the Remarketing Agent with any
credit or other information concerning the affairs, financial condition or
business of the Purchase Contract Agent, any Holder of Securities or any holder
of Separate Notes (or any of their respective subsidiaries or affiliates) that
may come into the possession of the Collateral Agent, the Custodial Agent or the
Securities Intermediary or any of their respective affiliates.

         Section 8.6 Compensation and Indemnity. The Company agrees: (i) to pay
BNY Midwest Trust Company from time to time such compensation as shall be agreed
in writing between the Company and BNY Midwest Trust Company for all services
rendered by BNY Midwest Trust Company as Collateral Agent, Custodial Agent and
Securities Intermediary hereunder and (ii) to indemnify the Collateral Agent,
the Custodial Agent and the Securities Intermediary for, and to hold each of
them harmless from and against, any loss, liability, claim, damage or reasonable
out-of-pocket expense incurred without gross negligence, willful misconduct or
bad faith on its part, arising out of or in connection with the acceptance or
administration of its powers and duties under this Agreement, including the
reasonable out-of-pocket costs and expenses (including reasonable fees and
expenses of counsel) of defending itself against any claim or liability in
connection with the exercise or performance of such powers and duties. The
Collateral Agent, the Custodial Agent and the Securities Intermediary shall each
promptly notify the Company of any third party claim which may give rise to the
indemnity hereunder and give the Company the opportunity to participate in the
defense of such claim with counsel reasonably satisfactory to the indemnified
party, and no such claim shall be settled without the written consent of the
Company, which consent shall not be unreasonably withheld.

         Section 8.7 Failure to Act. In the event of any ambiguity in the
provisions of this Agreement or any dispute between or conflicting claims by or
among the parties hereto or any other Person with respect to any funds or
property deposited hereunder, each of the Collateral Agent, the Custodial Agent
and the Securities Intermediary, as the case may be, shall be entitled, after
notice to the Company and the Purchase Contract Agent, at its sole option, to
refuse to comply with any and all claims, demands or instructions with respect
to such property or funds so long as such dispute or conflict shall continue,
and none of the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be, shall be or become liable in any way to any of
the parties hereto for its failure or refusal to comply with such conflicting
claims, demands or instructions. The Collateral Agent, the Custodial Agent and
the Securities Intermediary shall be entitled to refuse to act until either (i)
such conflicting or adverse claims or demands shall have been

                                       27
<PAGE>

finally determined by a court of competent jurisdiction or settled by agreement
between the conflicting parties as evidenced in a writing, satisfactory to the
Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be, or (ii) the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be, shall have received security or an indemnity
reasonably satisfactory to the Collateral Agent, the Custodial Agent or the
Securities Intermediary, as the case may be, sufficient to save the Collateral
Agent, the Custodial Agent or the Securities Intermediary, as the case may be,
harmless from and against any and all loss, liability or reasonable
out-of-pocket expense which the Collateral Agent, the Custodial Agent or the
Securities Intermediary, as the case may be, may incur by reason of its acting
without bad faith, willful misconduct or gross negligence. The Collateral Agent,
the Custodial Agent or the Securities Intermediary may in addition elect to
commence an interpleader action or seek other judicial relief or orders as the
Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be, may deem necessary. Notwithstanding anything contained herein to
the contrary, none of the Collateral Agent, the Custodial Agent or the
Securities Intermediary shall be required to take any action that is in its
opinion contrary to law or to the terms of this Agreement, or which would in its
opinion subject it or any of its officers, employees or directors to liability.

         Section 8.8 Resignation. Subject to the appointment and acceptance of a
successor Collateral Agent, Custodial Agent or Securities Intermediary as
provided below, (a) the Collateral Agent, the Custodial Agent and the Securities
Intermediary may resign at any time by giving notice thereof to the Company and
the Purchase Contract Agent as attorney-in-fact for the Holders of Securities,
(b) the Collateral Agent, the Custodial Agent and the Securities Intermediary
may be removed at any time by the Company and (c) if the Collateral Agent, the
Custodial Agent or the Securities Intermediary fails to perform any of its
material obligations hereunder in any material respect for a period of not less
than 20 days after receiving written notice of such failure by the Purchase
Contract Agent and such failure shall be continuing, the Collateral Agent, the
Custodial Agent or the Securities Intermediary may be removed by the Purchase
Contract Agent. No such removal shall be effective until a successor Collateral
Agent has been appointed pursuant to this Section. The Purchase Contract Agent
shall promptly notify the Company of any removal of the Collateral Agent, the
Custodial Agent or the Securities Intermediary pursuant to clause (c) of the
immediately preceding sentence. Upon any such resignation or removal, the
Company shall have the right to appoint a successor Collateral Agent, Custodial
Agent or Securities Intermediary, as the case may be. If no successor Collateral
Agent, Custodial Agent or Securities Intermediary, as the case may be, shall
have been so appointed and shall have accepted such appointment within 30 days
after the retiring Collateral Agent's, Custodial Agent's or Securities
Intermediary's giving of notice of resignation or such removal, then the
retiring Collateral Agent, Custodial Agent or Securities Intermediary, as the
case may be, may petition any court of competent jurisdiction for the
appointment of a successor Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be. Each of the Collateral Agent, the Custodial
Agent and the Securities Intermediary shall be a bank with a combined capital
and surplus of at least $75,000,000, which directly or

                                       28
<PAGE>

or through an affiliate maintains an office in The City of New York (in the
State of New York). Upon the acceptance of any appointment as Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, hereunder by a
successor Collateral Agent, Custodial Agent or Securities Intermediary, as the
case may be, such successor shall thereupon succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, and the retiring
Collateral Agent, Custodial Agent or Securities Intermediary, as the case may
be, shall take all appropriate action to transfer any money and property held by
it hereunder (including the Collateral) to such successor. The retiring
Collateral Agent, Custodial Agent or Securities Intermediary shall, upon such
succession, be discharged from its duties and obligations as Collateral Agent,
Custodial Agent or Securities Intermediary hereunder. After any retiring
Collateral Agent's, Custodial Agent's or Securities Intermediary's resignation
hereunder as Collateral Agent, Custodial Agent or Securities Intermediary, the
provisions of this Article VIII shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was acting as
the Collateral Agent, Custodial Agent or Securities Intermediary. Any
resignation or removal of the Collateral Agent hereunder shall be deemed for all
purposes of this Agreement as the simultaneous resignation or removal of the
Custodial Agent and the Securities Intermediary.

         Section 8.9 Right to Appoint Agent or Advisor. The Collateral Agent
shall have the right to appoint agents or advisors in connection with any of its
duties hereunder, and the Collateral Agent shall not be liable for any action
taken or omitted by, or in reliance upon the advice of, such agents or advisors
selected in good faith. The appointment of agents pursuant to this Section 8.9
shall be subject to prior consent of the Company, which consent shall not be
unreasonably withheld.

         Section 8.10 Survival. The provisions of this Article VIII shall
survive termination of this Agreement and the resignation or removal of the
Collateral Agent or the Custodial Agent.

         Section 8.11 Exculpation. Anything in this Agreement to the contrary
notwithstanding, in no event shall any of the Collateral Agent, the Custodial
Agent or the Securities Intermediary or their officers, employees or agents be
liable under this Agreement to any third party for indirect, special, punitive,
or consequential loss or damage of any kind whatsoever, including lost profits,
whether or not the likelihood of such loss or damage was known to the Collateral
Agent, the Custodial Agent or the Securities Intermediary, incurred without any
act or deed that is found to be attributable to gross negligence or willful
misconduct on the part of the Collateral Agent, the Custodial Agent or the
Securities Intermediary.

                                       29
<PAGE>

                                   ARTICLE IX

                                    AMENDMENT

         Section 9.1 Amendment Without Consent of Holders. Without the consent
of any Holders or the holders of any Separate Notes, the Company, the Collateral
Agent, the Custodial Agent, the Securities Intermediary and the Purchase
Contract Agent, at any time and from time to time, may amend this Agreement, in
form satisfactory to the Company, the Collateral Agent, the Custodial Agent, the
Securities Intermediary and the Purchase Contract Agent, for any of the
following purposes:

         (a)      to evidence the succession of another Person to the Company,
                  and the assumption by any such successor of the covenants of
                  the Company; or

         (b)      to add to the covenants of the Company for the benefit of the
                  Holders, or to surrender any right or power herein conferred
                  upon the Company so long as such covenants or such surrender
                  do not adversely affect the validity, perfection or priority
                  of the security interests granted or created hereunder; or

         (c)      to evidence and provide for the acceptance of appointment
                  hereunder by a successor Collateral Agent, Securities
                  Intermediary or Purchase Contract Agent; or

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

         Section 9.2 Amendment with Consent of Holders. With the consent of the
Holders of not less than a majority of the Purchase Contracts at the time
outstanding, by Act of said Holders delivered to the Company, the Purchase
Contract Agent or the Collateral Agent, as the case may be, the Company, when
duly authorized, the Purchase Contract Agent, the Collateral Agent, the
Custodial Agent and the Securities Intermediary may amend this Agreement for the
purpose of modifying in any manner the provisions of this Agreement or the
rights of the Holders in respect of the Securities; provided that no such
supplemental agreement shall, without the consent of the Holder of each
Outstanding Security affected thereby,

         (a)      change any payment date; or

         (b)      change the amount or type of Collateral underlying a Security,
                  except for the rights of Holders of Corporate Units to
                  substitute the Treasury Securities for the Pledged Notes or
                  the appropriate Pledged Applicable Ownership Interest in the
                  Treasury Portfolio, as the case may be, or the rights of
                  Holders of Treasury Units to substitute Notes or the
                  appropriate Applicable Ownership Interest in the Treasury
                  Portfolio, as applicable, for the Pledged Treasury Securities;
                  or

                                       30
<PAGE>

         (c)      impair the right of the Holder of any Securities to receive
                  distributions on the underlying Collateral or otherwise
                  adversely affect the Holder's rights in or to such Collateral;
                  or

         (d)      change the place or currency of payment or reduce any contract
                  adjustment payments or deferred contract adjustment payments;
                  or

         (e)      reduce the above-stated percentage of outstanding Purchase
                  Contracts the consent of Holders of which is required for the
                  modification or amendment of the provisions of this Agreement.

         If any amendment referred to above would adversely affect only the
Corporate Units or the Treasury Units, then only the affected class of Holders
shall be entitled to vote on the amendment and the amendment shall not be
effective except with the consent of the Holders of not less than a majority of
the affected class. It shall not be necessary for any Act of Holders under this
Article IX to approve the particular form of any proposed amendment, but it
shall be sufficient if such Act shall approve the substance thereof.

         Section 9.3 Execution of Amendments. In executing any amendment
permitted by this Section, the Collateral Agent, the Custodial Agent, the
Securities Intermediary and the Purchase Contract Agent shall be entitled to
receive and (subject to Section 8.1 hereof, with respect to the Collateral
Agent, and Section 7.1 of the Purchase Contract Agreement, with respect to the
Purchase Contract Agent) shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted
by this Agreement and that all conditions precedent, if any, to the execution
and delivery of such amendment have been satisfied. All amendments must be in
writing, signed by all parties to this Agreement. The Collateral Agent shall not
be obligated to execute any amendment that affects its own rights, duties,
protections or obligations.

         Section 9.4 Effect of Amendments. Upon the execution of any amendment
under this Article IX, this Agreement shall be modified in accordance therewith,
and such amendment shall form a part of this Agreement for all purposes; and
every Holder of Securities evidenced by Certificates theretofore or thereafter
authenticated, executed on behalf of the Holders and delivered under the
Purchase Contract Agreement shall be bound thereby.

         Section 9.5 Reference to Amendments. Certificates evidencing Securities
that are authenticated, executed on behalf of the Holders and delivered after
the execution of any amendment pursuant to this Article IX may, and shall if
required by the Company, the Collateral Agent or the Purchase Contract Agent,
bear a notation in form approved by the Company, the Purchase Contract Agent and
the Collateral Agent as to any matter provided for in such amendment. If the
Company shall so determine, new Certificates so modified as to conform, in the
opinion of the Collateral Agent, the Purchase Contract Agent and the Company, to
any such amendment may be prepared and executed by the

                                       31
<PAGE>

Company and authenticated, executed on behalf of the Holders and delivered by
the Purchase Contract Agent in accordance with the Purchase Contract Agreement
and without charge or expense to Holders in exchange for Certificates evidencing
Outstanding Securities.

                                    ARTICLE X

                                  MISCELLANEOUS

         Section 10.1 No Waiver. To the extent permitted by law, no failure on
the part of any party hereto or any of its agents to exercise, and no course of
dealing with respect to, and no delay in exercising, any right, power or remedy
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise by any party hereto or any of its agents of any right, power or remedy
hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. To the extent permitted by law, the remedies
herein are cumulative and are not exclusive of any remedies provided by law.

         Section 10.2 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Without limiting
the foregoing, the above choice of law is expressly agreed to by the Securities
Intermediary, the Collateral Agent and the Holders from time to time acting
through the Purchase Contract Agent, as their attorney-in-fact, in connection
with the establishment and maintenance of the Collateral Account. The Company,
the Collateral Agent and the Holders from time to time of the Securities, acting
through the Purchase Contract Agent as their attorney-in-fact, hereby submit to
the nonexclusive jurisdiction of the United States District Court for the
Southern District of New York and of any New York state court sitting in New
York City for the purposes of all legal proceedings arising out of or relating
to this Agreement or the transactions contemplated hereby. The Company, the
Collateral Agent and the Holders from time to time of the Securities, acting
through the Purchase Contract Agent as their attorney-in-fact, irrevocably
waive, to the fullest extent permitted by applicable law, any objection which
they may now or hereafter have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such a
court has been brought in an inconvenient forum, as well as to trial by jury.

         Section 10.3 Notices. All notices, requests, directions, consents and
other communications provided for herein (including, without limitation, any
modifications of, or waivers or consents under, this Agreement) shall be given
or made in writing (including, without limitation, by telecopy) delivered to the
intended recipient at the "Address for Notices" specified below its name on the
signature pages hereof or, as to any party, at such other address as shall be
designated by such party in a notice to the other parties. Except as otherwise
provided in this Agreement, all such communications shall be deemed to have been
duly given when transmitted by telecopier or personally

                                       32
<PAGE>

delivered or, in the case of a mailed notice, upon receipt, in each case given
or addressed as aforesaid.

         Section 10.4 Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the respective successors and assigns of the
Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary
and the Purchase Contract Agent, and the Holders from time to time of the
Securities, by their acceptance of the same, shall be deemed to have agreed to
be bound by the provisions hereof and to have ratified the agreements of, and
the grant of the Pledge hereunder by, the Purchase Contract Agent.

         Section 10.5 Counterparts. This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

         Section 10.6 Severability. If any provision hereof is invalid and
unenforceable in any jurisdiction, then, to the fullest extent permitted by law,
(i) the other provisions hereof shall remain in full force and effect in such
jurisdiction and shall be construed in order to carry out the intentions of the
parties hereto as nearly as may be possible and (ii) the invalidity or
unenforceability of any provision hereof in any jurisdiction shall not affect
the validity or enforceability of such provision in any other jurisdiction.

         Section 10.7 Expenses, etc. The Company agrees to reimburse BNY Midwest
Trust Company for: (a) all reasonable out-of-pocket costs and expenses of BNY
Midwest Trust Company (including, without limitation, the reasonable fees and
expenses of counsel to BNY Midwest Trust Company), in connection with (i) the
negotiation, preparation, execution and delivery or performance of this
Agreement and (ii) any modification, supplement or waiver of any of the terms of
this Agreement; (b) all reasonable costs and expenses of BNY Midwest Trust
Company as Collateral Agent hereunder (including, without limitation, reasonable
fees and expenses of counsel) in connection with (i) any enforcement or
proceedings resulting or incurred in connection with causing any Holder of
Securities to satisfy its obligations under the Purchase Contracts forming a
part of the Securities and (ii) the enforcement of this Section 10.7; and (c)
all transfer, stamp, documentary or other similar taxes, assessments or charges
levied by any governmental or revenue authority in respect of this Agreement or
any other document referred to herein and all costs, expenses, taxes,
assessments and other charges incurred in connection with any filing,
registration, recording or perfection of any security interest contemplated
hereby.

         Section 10.8 Security Interest Absolute. All rights of the Collateral
Agent and security interests hereunder, and all obligations of the Holders from
time to time hereunder, shall be absolute and unconditional irrespective of:

                                       33
<PAGE>

         (a)      any lack of validity or enforceability of any provision of the
                  Purchase Contracts or the Securities or any other agreement or
                  instrument relating thereto;

         (b)      any change in the time, manner or place of payment of, or any
                  other term of, or any increase in the amount of, all or any of
                  the obligations of Holders of Securities under the related
                  Purchase Contracts, or any other amendment or waiver of any
                  term of, or any consent to any departure from any requirement
                  of, the Purchase Contract Agreement or any Purchase Contract
                  or any other agreement or instrument relating thereto; or

         (c)      any other circumstance which might otherwise constitute a
                  defense available to, or discharge of, a borrower, a guarantor
                  or a pledgor.

         Section 10.9 Incorporation by Reference. Each of the Company, the
Collateral Agent, the Custodial Agent and the Securities Intermediary agrees
that the Purchase Contract Agent is, in acting hereunder with respect to the
Company, entitled to all rights, privileges, benefits, protections, immunities
and indemnities provided to it under the Purchase Contract Agreement.

                                       34
<PAGE>

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

                                             THE ST. PAUL COMPANIES, INC.

                                             By:_______________________________
                                             Name:
                                             Title:

Address for Notices:                         The St. Paul Companies, Inc.
                                             385 Washington Street
                                             St. Paul, Minnesota 55102
                                             Attention:  Bruce A. Backberg, Esq.
                                             Telecopy:  (651) 310-8204

                                             JPMORGAN CHASE BANK, as
                                             Purchase Contract Agent and
                                             as attorney-in-fact of the
                                             Holders from time to time
                                             of the Securities

                                             By:_______________________________
                                             Name:
                                             Title:

Address for Notices:                         JPMorgan Chase Bank
                                             450 West 33rd Street, 15th Floor
                                             New York, New York 10001
                                             Attention:  Institutional Trust
                                             Services
                                             Telecopy:  (212) 946-8154

                                             BNY Midwest Trust Company,
                                             as Collateral Agent, Custodial
                                             Agent and as Securities
                                             Intermediary

                                             By:_______________________________
                                             Name:
                                             Title:

Address for Notices:                         BNY Midwest Trust Company
                                             2 North LaSalle Street, Suite 1020
                                             Chicago, Illinois 60602
                                             Attn:             Daniel G. Donovan
                                             Telecopy:         (312) 827-8542

                                       35
<PAGE>

                                    EXHIBIT A

                    INSTRUCTION FROM PURCHASE CONTRACT AGENT
                               TO COLLATERAL AGENT

BNY Midwest Trust Company,
2 North LaSalle Street
Suite 1020
Chicago, Illinois 60602

Re:      The St. Paul Companies, Inc. (the "Company")

         We hereby notify you in accordance with Section [4.1] [4.2] of the
Pledge Agreement, dated as of July 31, 2002 (the "Pledge Agreement"), among the
Company, yourselves, as Collateral Agent, Custodial Agent and Securities
Intermediary, and ourselves, as Purchase Contract Agent and as attorney-in-fact
for the holders of [Corporate Units] [Treasury Units] from time to time, that
the holder of the Securities listed below (the "Holder") has elected to
substitute $_____ [aggregate principal amount of Treasury Securities] [aggregate
principal amount of Notes or the appropriate Applicable Ownership Interest in
the Treasury Portfolio, as the case may be,] in exchange for an equal Value of
[Pledged Notes or the appropriate Pledged Applicable Ownership Interest in the
Treasury Portfolio, as the case may be,] [Pledged Treasury Securities] held by
you in accordance with the Pledge Agreement and has delivered to us a notice
stating that the Holder has Transferred [Treasury Securities] [Notes or the
appropriate Applicable Ownership Interest in the Treasury Portfolio, as the case
may be,] to you, as Collateral Agent. We hereby instruct you, upon receipt of
such [Pledged Treasury Securities] [Pledged Notes or the appropriate Pledged
Applicable Ownership Interest in the Treasury Portfolio, as the case may be,],
and upon the payment by such Holder of any applicable fees, to release the
[Notes or the appropriate Applicable Ownership Interest in the Treasury
Portfolio, as the case may be,] [Treasury Securities] related to such [Corporate
Units] [Treasury Units] to us in accordance with the Holder's instructions.
Capitalized terms used herein but not defined shall have the meaning set forth
in the Pledge Agreement.

Date:_____________

                                             JPMORGAN CHASE BANK,

                                             By:_______________________________
                                                      Name:
                                                      Title:

Signature Guarantee:______________

                                       1
<PAGE>

         Please print name and address of Registered Holder electing to
substitute [Treasury Securities] [Notes or the appropriate Applicable Ownership
Interest in the Treasury Portfolio, as the case may be,] for the [Pledged Notes
or the appropriate Pledged Applicable Ownership Interest in the Treasury
Portfolio, as the case may be,] [Pledged Treasury Securities]:

_____________________________________________________________

Name

Social Security or other Taxpayer Identification Number, if any

___________________________

Address

___________________________

___________________________

                                       2
<PAGE>

                                    EXHIBIT B

                     INSTRUCTION TO PURCHASE CONTRACT AGENT

JPMorgan Chase Bank,
450 West 33rd Street
15th Floor
New York, New York 10001

Re:      Equity Units of The St. Paul Companies, Inc. (the "Company")

         The undersigned Holder hereby notifies you that it has delivered to BNY
Midwest Trust Company, as Collateral Agent, [$_______ aggregate principal amount
of Treasury Securities] [$_____aggregate principal amount of Notes or the
appropriate Applicable Ownership Interest in the Treasury Portfolio, the case
may be,] in exchange for an equal Value of [Pledged Notes or the appropriate
Pledged Applicable Ownership Interest in the Treasury Portfolio, as the case may
be,] [Pledged Treasury Securities] held by the Collateral Agent, in accordance
with Section [4.1][4.2] of the Pledge Agreement, dated July 31, 2002 (the
"Pledge Agreement"), among you, the Company and the Collateral Agent. The
undersigned Holder has paid the Collateral Agent all applicable fees relating to
such exchange. The undersigned Holder hereby instructs you to instruct the
Collateral Agent to release to you on behalf of the undersigned Holder the
[Pledged Notes or the appropriate Pledged Applicable Ownership Interest in the
Treasury Portfolio] [Pledged Treasury Securities] related to such [Corporate
Units] [Treasury Units]. Capitalized terms used herein but not defined shall
have the meaning set forth in the Pledge Agreement.

Dated:_____________                         __________________________
                                    Signature

Signature Guarantee:______________

Please print name and address of Registered Holder:

____________________________

____________________________________

Name Social Security or other Taxpayer
Identification Number, if any ___________________________

Address

____________________________

____________________________

                                       1
<PAGE>

                                    EXHIBIT C

              INSTRUCTION TO CUSTODIAL AGENT REGARDING REMARKETING

BNY Midwest Trust Company,
2 North LaSalle Street
Suite 1020
Chicago, Illinois 60602

Re:      Notes of The St. Paul Companies, Inc. (the "Company")

         The undersigned hereby notifies you in accordance with Section 4.6(c)
of the Pledge Agreement, dated as of July 31, 2002 (the "Pledge Agreement"),
among the Company, yourselves, as Collateral Agent, Securities Intermediary and
Custodial Agent, and JPMorgan Chase Bank, as Purchase Contract Agent and as
attorney-in-fact for the Holders of Corporate Units and Treasury Units from time
to time, that the undersigned elects to deliver $ ___________ aggregate
principal amount of Notes for delivery to the Remarketing Agent on the Business
Day immediately preceding the [Initial Remarketing Date] [Secondary Remarketing
Date] [Final Remarketing Date] for remarketing pursuant to Section 4.6(c) of the
Pledge Agreement. The undersigned will, upon request of the Remarketing Agent,
execute and deliver any additional documents deemed by the Remarketing Agent or
by the Company to be necessary or desirable to complete the sale, assignment and
transfer of the Notes tendered hereby.

         The undersigned hereby instructs you, upon receipt of the Proceeds of
such remarketing from the Remarketing Agent to deliver such Proceeds to the
undersigned in accordance with the instructions indicated herein under "A.
Payment Instructions". The undersigned hereby instructs you, in the event of
Failed [Initial] [Secondary] [Final] Remarketing, upon receipt of the Notes
tendered herewith from the Remarketing Agent, to be delivered to the person(s)
and the address(es) indicated herein under "B. Delivery Instructions."

                                       1
<PAGE>

         With this notice, the undersigned hereby (i) represents and warrants
that the undersigned has full power and authority to tender, sell, assign and
transfer the Notes tendered hereby and that the undersigned is the record owner
of any Notes tendered herewith in physical form or a participant in The
Depository Trust Company ("DTC") and the beneficial owner of any Notes tendered
herewith by book-entry transfer to your account at DTC and (ii) agrees to be
bound by the terms and conditions of Section 4.6(c) of the Pledge Agreement.
Capitalized terms used herein but not defined shall have the meaning set forth
in the Pledge Agreement.

Date:_____________

                                              __________________________________
                                              By:_______________________________
                                                    Name:
                                                    Title:

Signature Guarantee:______________

_____________________________________________________________

Name

Social Security or other Taxpayer Identification Number, if any ________________

Address
___________________________

___________________________

_____________________________________________________________

                                       2
<PAGE>

A.       PAYMENT INSTRUCTIONS

_______________________________________________________________________

         Proceeds of the remarketing should be paid by check in the name of the
person(s) set forth below and mailed to the address set forth below.

_______________________________________________________________________

Name(s)

_______________________________________________________________________
(Please Print)

Address
(Please Print)

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

(Zip Code)

_______________________________________________________________________
(Tax Identification or Social Security Number)

_______________________________________________________________________

                                       3
<PAGE>

B.       DELIVERY INSTRUCTIONS

_______________________________________________________________________

         In the event of a failed remarketing, Notes which are in physical form
should be delivered to the person(s) set forth below and mailed to the address
set forth below.

Name(s)

_______________________________________________________________________
(Please Print)

Address
(Please Print)

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________
(Zip Code)

_______________________________________________________________________
(Tax Identification or Social Security Number)

         In the event of a failed remarketing, Notes which are in book-entry
form should be credited to the account at The Depository Trust Company set forth
below.

__________________

DTC Account Number

Name of Account Party:_________________________________

                                       4
<PAGE>

                                    EXHIBIT D

                    INSTRUCTION TO CUSTODIAL AGENT REGARDING
                           WITHDRAWAL FROM REMARKETING

BNY Midwest Trust Company,
2 North LaSalle Street
Suite 1020
Chicago, Illinois 60602

Re:      Notes of The St. Paul Companies, Inc. (the "Company")

         The undersigned hereby notifies you in accordance with Section 4.6(c)
of the Pledge Agreement, dated as of July 31, 2002 (the "Pledge Agreement")
among the Company, yourselves, as Collateral Agent, Securities Intermediary and
Custodial Agent and JPMorgan Chase Bank, as Purchase Contract Agent and as
attorney-in-fact for the Holders of Corporate Units and Treasury Units from time
to time, that the undersigned elects to withdraw the $_____ aggregate principal
amount of Notes delivered to the Custodial Agent on __________, 2005 for
remarketing pursuant to Section 4.6(c) of the Pledge Agreement. The undersigned
hereby instructs you to return such Notes to the undersigned in accordance with
the undersigned's instructions. With this notice, the undersigned hereby agrees
to be bound by the terms and conditions of Section 4.6(c) of the Pledge
Agreement. Capitalized terms used herein but not defined shall have the meaning
set forth in the Pledge Agreement.

Date:_____________

                                              __________________________________

                                              By:_______________________________
                                                   Name:
                                                   Title:

Signature Guarantee:_____________

__________________________________

__________________________________
Name

Social Security or other Taxpayer
Identification Number, if any ___________________________

Address
__________________________________

__________________________________

                                       1

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