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                                                                     Exhibit 4.2

                           THIRD AMENDED AND RESTATED
                      1990 NON-QUALIFIED STOCK OPTION PLAN
                           FOR NON-EMPLOYEE DIRECTORS

                      (AS AMENDED EFFECTIVE APRIL 17, 2000)

1.       NAME.

         The name of this plan is the Third Amended and Restated 1990
Non-Qualified Stock Option Plan for Non-Employee Directors.

2.       DEFINITIONS.

         For the purposes of the Plan, the following terms shall be defined as
set forth below:

         (a)      "Board" means the board of directors of the Company.

         (b)      "Code" means the Internal Revenue Code of 1986, as amended
                  from time to time, and the Treasury regulations promulgated
                  thereunder.

         (c)      "Committee" means the committee  appointed by the Board to
                  administer the Plan as provided in Section 4(a).

         (d)      "Common Stock" means the $.01 par value common stock of the
                  Company or any security of the Company identified by the
                  Committee as having been issued in substitution or exchange
                  therefor or in lieu thereof.

         (e)      "Company" means ALARIS Medical, Inc., a Delaware corporation.

         (f)      "Effective Date" means September 7, 1990.

         (g)      "Employee" means an individual whose wages are subject to the
                  withholding of federal income tax under Section 3401 of the
                  Code.

         (h)      "Exchange Act" means the Securities Exchange Act of 1934, as
                  amended from time to time, or any successor statute.

         (i)      "Fair Market Value" of a Share as of a specified date means,
                  except as otherwise reasonably determined by the Committee
                  based on reported prices of a Share, (i) the average of the
                  highest and lowest market prices of a Share on such date as
                  reported in the American Stock Exchange (or the principal
                  exchange on which the Shares are then traded) composite
                  transactions published in the Eastern Edition of The Wall
                  Street Journal or, if no trading of Common Stock is reported
                  for that day, the next preceding day on which trading was
                  reported, or (ii) if the Shares are traded in the
                  over-the-counter market, the average of the highest bid and
                  lowest asked prices per Share on the specified date (or the
                  next preceding date on which trading was reported) as reported
                  through the NASDAQ system or any successor thereto.

         (j)      "Non-Employee Director" means an individual who: (i) is now,
                  or hereafter becomes, a member of the Board; (ii) is neither
                  an Employee nor an Officer (other than an officer who does not
                  receive a salary as an officer) of the Company or of any
                  Subsidiary on the date of the grant of the NQSO; and (iii) has
                  not elected to decline to participate in the Plan pursuant to
                  the next succeeding sentence. A director otherwise eligible to
                  participate in the Plan may make an irrevocable, one-time
                  election, by written notice to the Corporate Secretary of the
                  Company and the Chairman of the Committee within thirty days
                  after his initial election or appointment to the Board to
                  decline to participate in the Plan.

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         (k)      "NQSO" means an option granted under this Plan, which option
                  is not qualified under Section 422 of the Code.

         (l)      "Officer" means an individual elected or appointed by the
                  Board or by the board of directors of a Subsidiary, or chosen
                  in such other manner as may be prescribed by the by-laws of
                  the Company or a Subsidiary, as the case may be, to serve as
                  such.

         (m)      "Participant" means a Non-Employee Director who is granted a
                   NQSO under the Plan.

         (n)      "Plan" means this Third Amended and Restated 1990
                  Non-Qualified Stock Option Plan for Non-Employee Directors.

         (o)      "Rule 16b-3" means Rule 16b-3 promulgated by the Securities
                  and Exchange Commission under the Exchange Act, or any
                  successor or replacement rule adopted by the Securities and
                  Exchange Commission.

         (p)      "Share" means one share of Common Stock, adjusted in
                  accordance with Section 9(b), if applicable.

         (q)      "Stock Option Agreement" means the written agreement between
                  the Company and the Participant that contains the terms and
                  conditions pertaining to the NQSO.

         (r)      "Subsidiary" means any corporation or entity of which the
                  Company, directly or indirectly, is the beneficial owner of
                  fifty percent (50%) or more of the total combined voting power
                  of all classes of its stock having voting power, unless the
                  Committee shall determine that any such corporation or entity
                  shall be excluded hereunder from the definition of the term
                  Subsidiary.

3.       PURPOSE.

         The purpose of the Plan is to enable the Company to provide incentives,
which are linked directly to increases in shareholder value, to Non-Employee
Directors in order that they will be encouraged to serve on the Board and exert
their best efforts on behalf of the Company.

4.       ADMINISTRATION.

         (a)      COMPOSITION OF THE COMMITTEE.

         The Plan shall be administered by a Committee appointed by the Board
consisting of no less than two individuals. Members of the Committee need not be
members of the Board, Officers or Employees of the Company. Members of the
Committee shall not be entitled to participate in the Plan. The Board may from
time to time remove members from, or add members to, the Committee. Vacancies on
the Committee, however caused, shall be filled by the Board.

         (b)      ACTIONS BY THE COMMITTEE.

         The Committee shall hold meetings at such times and places as it may
determine. Acts approved by a majority of the members of the Committee present
at a meeting at which a quorum is present, or acts reduced to or approved in
writing by a majority of the members of the Committee, shall be the valid acts
of the Committee.

         (c)      POWERS OF THE COMMITTEE.

         The Committee shall have the authority to administer the Plan in its
sole and absolute discretion; PROVIDED, HOWEVER, that the Committee shall have
no authority to grant NQSOs, to determine the number of Shares subject to NQSOs
or the price at which each Share covered by a NQSO may be purchased pursuant to
the Plan, all of which shall be automatic as described in Section 8. To this
end, the Committee is authorized to construe and interpret the

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Plan and to make all other determinations necessary or advisable for the
administration of the Plan. Subject to the foregoing, any determination,
decision or action of the Committee in connection with the construction,
interpretation, administration or application of the Plan shall be final,
conclusive and binding upon all Participants and any person validly claiming
under or through a Participant.

         (d)      LIABILITY OF COMMITTEE MEMBERS.

         No member of the Board or the Committee will be liable for any action
or determination made in good faith by the Board or the Committee with respect
to the Plan or any grant or exercise of a NQSO thereunder.

         (e)      NQSO ACCOUNTS.

         The Committee shall maintain a journal in which a separate account for
each Participant shall be established. Whenever NQSOs are granted to or
exercised by a Participant, the Participant's account shall be appropriately
credited or debited. Appropriate adjustment shall also be made in the journal
with respect to each account in the event of an adjustment pursuant to Section
9(b).

5.       EFFECTIVE DATE AND TERM OF THE PLAN.

         (a)      EFFECTIVE DATE OF THE PLAN.

         The Plan in its original form was adopted by the Board on July 12, 1990
and became effective on September 7, 1990. The Plan in its third amended and
restated form was amended by the Board effective May 28, 1998, subject to
approval by the shareholders of the Company at a meeting duly called and held
within twelve months following the date of Board approval. The Plan, as amended,
was again amended by the Board effective April 17, 2000, subject to approval by
the shareholders of the Company at a meeting duly called and held within twelve
months following the date of Board approval.

         (b)      TERM OF PLAN.

         No NQSO shall be granted pursuant to the Plan on or after September 7,
2005, but NQSOs theretofore granted may extend beyond that date.

6.       SHARES SUBJECT TO THE PLAN.

         The maximum aggregate number of Shares which may be subject to NQSOs
granted to Non-Employee Directors under the Plan shall be 500,000. The
limitation on the number of Shares which may be subject to NQSOs under the Plan
shall be subject to adjustment as provided in Section 9(b).

         If any NQSO granted under the Plan expires or is terminated for any
reason without having been exercised in full, the Shares allocable to the
unexercised portion of such NQSO shall again become available for grant pursuant
to the Plan. At all times during the term of the Plan, the Company shall reserve
and keep available for issuance such number of Shares as the Company is
obligated to issue upon the exercise of all then outstanding NQSOs.

7.       SOURCE OF SHARES ISSUED UNDER THE PLAN.

         Common Stock issued under the Plan may consist, in whole or in part, of
authorized and unissued Shares or treasury Shares, as determined in the sole and
absolute discretion of the Committee. No fractional Shares shall be issued under
the Plan.

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8.       NON-QUALIFIED STOCK OPTIONS.

         (a)      GRANT OF NQSOS.

         An individual who first becomes a Non-Employee Director on or after May
28, 1998, shall be granted automatically NQSOs to purchase 10,000 Shares on the
next succeeding business day after becoming a Non-Employee Director. In
addition, (i) NQSOs to purchase 10,000 Shares shall be granted automatically to
each Non-Employee Director on each anniversary date of his preceding automatic
NQSO grant under the Plan and every year thereafter during the term of the Plan,
provided that said Non-Employee Director continues to be a member of the Board
on the date of each such additional grant; and (ii) the Chairman of the Board
shall be granted a NQSO to purchase 16,000 Shares on May 28, 1998, which NQSO
shall be immediately vested and exercisable. NQSOs shall be granted in the
aforesaid manner until the date on which the Shares available for grant shall no
longer be sufficient to permit grants of NQSOs covering 10,000 Shares to be made
to each Non-Employee Director entitled to a grant as of such date, in which
event the Shares then available for grant shall be allocated on a PRO RATA basis
among the Non-Employee Directors entitled to a grant of NQSOs as of such date.

         (b)      EXERCISE PRICE.

         The price at which each Share covered by a NQSO may be purchased
pursuant to this Plan shall be equal to the Fair Market Value of a Share on the
date of the NQSO grant.

         (c)      TERMS AND CONDITIONS.

         All NQSOs granted pursuant to the Plan shall be evidenced by a Stock
Option Agreement (which need not be the same for each Participant or NQSO),
approved by the Committee which shall be subject to the following express terms
and conditions and to the other terms and conditions specified in this Section
8, and to such other terms and conditions as shall be determined by the
Committee in its sole and absolute discretion which are not inconsistent with
the terms of the Plan:

                  (i)      except as set forth in Sections 8(a) and 10, all
                           NQSOs granted to a Participant shall vest and become
                           first exercisable at the rate of one-third of the
                           Shares subject to the NQSOs for each twelve month
                           period of continuous service on the Board (from the
                           date of grant of the NQSO) by such Participant,
                           rounded down to the nearest whole number for each of
                           the first two twelve month periods and rounded up to
                           the nearest whole number for the third twelve month
                           period of service;

                  (ii)     the failure of a NQSO to vest for any reason
                           whatsoever shall cause the NQSO to expire and be of
                           no further force or effect;

                  (iii)    unless terminated earlier pursuant to Sections 8(f)
                           or 10, the term of each NQSO shall be five years from
                           the date of grant;

                  (iv)     no NQSO or interest therein may be pledged,
                           hypothecated, encumbered or otherwise made subject to
                           execution, attachment or similar process, and no NQSO
                           or interest therein shall be assignable or
                           transferable by the holder otherwise than by will or
                           by the laws of descent and distribution or to a
                           beneficiary upon the death of a Participant, and an
                           NQSO shall be exercisable during the lifetime of the
                           holder only by him or by his guardian or legal
                           representative, except that a NQSO may be transferred
                           to one or more transferees during the lifetime of the
                           Participant, and may be exercised by such transferee
                           in accordance with the terms of such NQSO, subject to
                           any terms and conditions which the Committee may
                           impose thereon. A transferee or other person claiming
                           any rights under the Plan from or through any
                           Participant shall be subject to all terms and
                           conditions of the Plan and any Stock Option Agreement
                           applicable to such Participant, except as otherwise
                           determined by the Committee, and to any additional
                           terms and conditions deemed necessary or appropriate
                           by the Committee; and

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                  (v)      payment for the Shares to be received upon exercise
                           of a NQSO may be made in cash or in Shares
                           (determined with reference to their Fair Market Value
                           on the date of exercise), or any combination thereof.

         (d)      ADDITIONAL MEANS OF PAYMENT.

         Any Stock Option Agreement may, in the sole and absolute discretion of
the Committee, permit payment by any other form of legal consideration
consistent with applicable law and any rules and regulations relating thereto,
including, but not limited to, the execution and delivery of a full recourse
promissory note by the Participant to the Company.

         (e)      EXERCISE.

         The holder of a NQSO may exercise the same by filing with the Corporate
Secretary of the Company a written election, in such form as the Committee may
determine, specifying the number of Shares with respect to which such NQSO is
being exercised. Such notice shall be accompanied by payment in full of the
exercise price for such Shares. Notwithstanding the foregoing, the Committee may
specify a reasonable minimum number of Shares that may be purchased on any
exercise of an Option, provided that such minimum number will not prevent the
Participant from exercising the Option with respect to the full number of Shares
as to which the Option is then exercisable.

         (f)      TERMINATION OF NQSOS.

         NQSOs granted under the Plan shall be subject to the following events
of termination:

                  (i)      in the event a Participant is removed from the Board
                           for cause (as contemplated by the Company's by-laws),
                           all unexercised NQSOs held by such Participant on the
                           date of such removal (whether or not vested) will
                           expire immediately;

                  (ii)     in the event a Participant is no longer a member of
                           the Board, other than by reason of removal for Cause,
                           all NQSOs which remain unvested at the time the
                           Participant is no longer a member of the Board shall
                           expire immediately, and all NQSOs which have vested
                           prior to such time shall expire twelve months
                           thereafter unless by their terms they expire sooner;
                           and

                  (iii)    in the event a Participant becomes an Officer or
                           Employee of the Company or a Subsidiary (whether or
                           not such Participant remains a member of the Board)
                           all NQSOs which remain unvested on the date such
                           Participant becomes an Officer or Employee of the
                           Company shall expire immediately, and all NQSOs which
                           have vested prior to such date shall expire twelve
                           months thereafter unless by their terms they expire
                           sooner.

9.       RECAPITALIZATION.

         (a)      CORPORATE FLEXIBILITY.

         The existence of the Plan and the NQSOs granted hereunder shall not
affect or restrict in any way the right or power of the Board or the
shareholders of the Company, in their sole and absolute discretion, to make,
authorize or consummate any adjustment, recapitalization, reorganization or
other change in the Company's capital structure or its business, any merger or
consolidation of the Company, any issue of bonds, debentures, common stock,
preferred or prior preference stocks ahead of or affecting the Company's capital
stock or the rights thereof, the dissolution or liquidation of the Company or
any sale or transfer of all or any part of its assets or business, or any other
grant of rights, issuance of securities, transaction, corporate act or
proceeding and notwithstanding the fact that any such activity, proceeding,
action, transaction or other event may have, or be expected to have, an impact
(whether positive or negative) on the value of any NQSO or underlying Shares.

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         (b)      ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

         Except as otherwise provided in Section 10 below, in the event of any
change in capitalization affecting the Common Stock of the Company, such as a
stock dividend, stock split or recapitalization, the Committee shall make
proportionate adjustments with respect to: (i) the aggregate number of Shares
available for issuance under the Plan; (ii) the number of shares subject to each
grant under the Plan; (iii) the number and exercise price of Shares subject to
outstanding NQSOs; and (iv) such other matters as shall be appropriate in light
of the circumstances; PROVIDED, HOWEVER, that the number of Shares subject to
any NQSO shall always be a whole number.

10.      CHANGE OF CONTROL

         In the event of a Change of Control (as defined below), all NQSOs not
vested on or prior to the effective time of any such Change of Control shall
vest immediately prior to such effective time. Unless otherwise determined by
the Committee at the time of a Change of Control, in the event of a Change of
Control all outstanding NQSOs shall terminate and cease to be outstanding
immediately following the Change of Control; PROVIDED, HOWEVER, that no such
NQSO termination shall occur unless a Participant shall have been given five
business days, following prior written notice, to exercise such Participant's
outstanding vested NQSOs at the effective time of the Change of Control, or to
receive cash in an amount per Share subject to such NQSOs equal to the amount by
which the price paid for a Share (determined on a fully diluted basis and taking
into account the exercise price, as determined by the Committee) in the Change
of Control exceeds the per share exercise price of such NQSOs. The Committee in
its discretion may make provisions for the assumption of outstanding NQSOs, or
the substitution for outstanding NQSOs of new incentive awards covering the
stock of a successor corporation or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of shares and prices so as to
prevent dilution or enlargement of rights.

         A "Change of Control" will be deemed to occur on the date any of the
following events occur:

         (a) any person or persons acting together which would constitute a
"group" for purposes of Section 13(d) of the Exchange Act (other than the
Company, any Subsidiary and Jeffry M. Picower (including, any of his Affiliates
and any lineal descendant of Mr. Picower, any widow or then current spouse of
Mr. Picower or of any such lineal descendant, a trust established principally
for the benefit of any of the foregoing, any entity which is at least 90%
beneficially owned by any of the foregoing, and the executor, administrator or
personal representative of the estate of any of the foregoing (the "Picower
Group")) beneficially own (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, securities of the Company or any Significant Subsidiary
(as defined below) representing greater than 10% of the total combined voting
power of the Company or the Significant Subsidiary entitled to vote in the
election of the board of directors of the Company or the Significant Subsidiary;
PROVIDED, HOWEVER, that such event shall not constitute a Change of Control
unless and until the combined voting power of such securities owned
beneficially, directly or indirectly, by such person or persons is greater than
the combined voting power of all such securities owned beneficially, directly or
indirectly, by Mr. Picower and the Picower Group;

         (b) persons other than the Current Directors (as herein defined)
constitute a majority of the members of the Board (for these purposes, a
"Current Director" means any member of the Board as of May 1, 1997, and any
successor of any such member whose election, or nomination for election by the
Company's shareholders, was approved by at least a majority of the Current
Directors then on the Board or by Mr. Picower or the Picower Group);

         (c) the consummation of (i) a plan of liquidation of all or
substantially all of the assets of the Company or any Subsidiary owning directly
or indirectly all or substantially all of the consolidated assets of the Company
(a "Significant Subsidiary"), or (ii) an agreement providing for the merger or
consolidation of the Company or a Significant Subsidiary (A) in which the
Company or a Significant Subsidiary is not the continuing or surviving
corporation (other than a consolidation or merger with a wholly-owned subsidiary
of the Company in which all Shares of the Company or common stock in the
Significant Subsidiary outstanding immediately prior to the effectiveness
thereof are changed into or exchanged for all or substantially all of the common
stock of the surviving corporation and (if the Company ceases to exist) the
surviving corporation assumes all the NQSO, or (B) pursuant to which, even
though the Company is the continuing or surviving corporation, the Shares of the
Company or common stock in the Significant Subsidiary are converted into cash,
securities or other property; PROVIDED,

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HOWEVER, that no "Change of Control" shall be deemed to occur as the result of a
consolidation or merger of the Company or a Significant Subsidiary in which the
holders of the Shares of the Company immediately prior to the consolidation or
merger have, as a result thereof, directly or indirectly, at least a majority of
the combined voting power of all classes of voting stock of the continuing or
surviving corporation or its parent immediately after such consolidation or
merger or in which the Board immediately prior to the merger or consolidation
would, immediately after the merger or consolidation, constitute a majority of
the board of directors of the continuing or surviving corporation or its parent;
or

         (d) the consummation of an agreement (or agreements) providing for the
sale or other disposition (in one transaction or a series of transactions) of
all or substantially all of the assets of the Company or a Significant
Subsidiary other than such a sale or disposition immediately after which such
assets will be owned directly or indirectly by the stockholders of the Company
in substantially the same proportions as their ownership of the Shares
immediately prior to such sale or disposition.

11.      SECURITIES LAW REQUIREMENTS.

         No Shares shall be issued under the Plan unless and until: (i) the
Company and the Participant have taken all actions required to register the
Shares under the Securities Act of 1933, as amended, or perfect an exemption
from the registration requirements thereof; (ii) any applicable listing
requirement of any stock exchange or national market system on which the Common
Stock is listed has been satisfied; and (iii) any other applicable provision of
state or federal law has been satisfied. The Company shall be under no
obligation to register the Shares with the Securities and Exchange Commission or
to effect compliance with the registration or qualification requirements of any
state securities laws or stock exchange.

12.      AMENDMENT AND TERMINATION.

         (a)      MODIFICATIONS TO THE PLAN.

         The Board may, insofar as permitted by law, from time to time, with
respect to any Shares at the time not subject to NQSOs, suspend or terminate the
Plan or, subject to Sections 8(a) and 8(b), revise or amend the Plan in any
respect whatsoever. However, any revision or amendment that would cause the Plan
to fail to comply with any requirement of applicable law or regulation if such
amendment were not approved by the shareholders of the Company shall not be
effective unless and until such approval is obtained.

         (b)      RIGHTS OF PARTICIPANT.

         No amendment, suspension or termination of the Plan or of any NQSO that
would adversely affect the right of any Participant with respect to a NQSO
previously granted under the Plan will be effective without the written consent
of the affected Participant.

13.      MISCELLANEOUS

         (a)      SHAREHOLDERS' RIGHTS.

         No Participant and no beneficiary or other person claiming under or
through such Participant shall acquire any rights as a shareholder of the
Company by virtue of such Participant having been granted a NQSO under the Plan.
No Participant and no beneficiary or other person claiming under or through such
Participant will have any right, title or interest in or to any Shares allocated
or reserved under the Plan or subject to any NQSO, except as to Shares, if any,
that have been issued or transferred to such Participant. No adjustment shall be
made for dividends or distributions or other rights for which the record date is
prior to the date of exercise.

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         (b)      OTHER COMPENSATION ARRANGEMENTS.

         Nothing contained in the Plan shall prevent the Board from adopting
other compensation arrangements, subject to shareholder approval if such
approval is required. Such other arrangements may be either generally applicable
or applicable only in specific cases.

         (c)      TREATMENT OF PROCEEDS.

         Proceeds realized from the exercise of NQSOs under the Plan shall
constitute general funds of the Company.

         (d)      COSTS OF THE PLAN.

         The costs and expenses of administering the Plan shall be borne by the
Company.

         (e)      NO RIGHT TO CONTINUE AS DIRECTOR.

         Nothing contained in the Plan or in any instrument executed pursuant to
the Plan will confer upon any Participant any right to continue as a member of
the Board or affect the right of the Company, the Board or the shareholders of
the Company to terminate the directorship of any Participant at any time with or
without cause.

         (f)      SEVERABILITY.

         The provisions of the Plan shall be deemed severable and the validity
or unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

         (g)      GOVERNING LAW.

         The Plan and all actions taken thereunder shall be enforced, governed
and construed by and interpreted under the laws of the State of Delaware
applicable to contracts made and to be performed wholly within such State
without giving effect to the principles of conflict of laws thereof.

         (h)      HEADINGS.

         The headings contained in this Plan are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Plan.

                                      -8-<Page>

                                                                     Exhibit 4.1

                            SIERRA PACIFIC RESOURCES

                              OFFICERS' CERTIFICATE

                                November 16, 2001

       Pursuant to Sections 2.01, 13.04 and 13.05 of the Indenture dated as of
May 1, 2001 (as supplemented and amended from time to time, the "Indenture"),
between Sierra Pacific Resources (the "Company") and The Bank of New York, as
trustee (the "Trustee") and the authority granted in the Resolutions of the
Board of Directors of the Company dated November 6, 2001, the undersigned
officers of the Company, Dennis D. Schiffel, Senior Vice President and Chief
Financial Officer, and Richard K. Atkinson, Treasurer and Investor Relations
Officer, hereby certify on behalf of the Company as follows:

       The terms and conditions of the securities described in this Officers'
Certificate are as follows (the numbered paragraphs set forth below
corresponding to the numbered paragraphs of Section 2.01 of the Indenture,
except paragraph 20 below). Certain terms used herein are defined in paragraph
20 of this certificate. Capitalized terms used herein but not defined in said
paragraph 20 or elsewhere in this certificate shall have the meanings assigned
to them in the Indenture unless the context clearly requires otherwise

1.     TITLE; RANKING. The Securities issued under the Indenture shall
       constitute a new series of Securities and shall be designated "7.93 %
       Senior Notes due 2007" (the "Senior Notes"). The Senior Notes shall
       constitute the senior, unsecured and unsubordinated debt obligations of
       the Company and shall rank equally in right of payment with all other
       existing and future senior, unsecured and unsubordinated debt obligations
       of the Company. The Senior Notes, including the related form of Trustee's
       certificate of authentication and any applicable legends, shall be issued
       in substantially the form annexed hereto as EXHIBIT A.

2.     MAXIMUM AGGREGATE PRINCIPAL AMOUNT. The maximum aggregate principal
       amount of the Senior Notes that may be authenticated and delivered under
       the Indenture (except for the Senior Notes authenticated and delivered
       upon registration or transfer of or in exchange for, or in lieu of other
       Senior Notes pursuant to Section 2.06, 2.07, 2.09 or 3.07 of the
       Indenture) shall be $300,000,000 (or up to $345,000,000 if the
       Underwriters exercise their over-allotment option as set forth in the
       Underwriting Agreement).

3.     REGISTERED SECURITIES IN GLOBAL FORM, ETC. Initially, the Senior Notes
       (including the Senior Notes, if any, issued pursuant to the exercise of
       the Underwriters' over-allotment option as set forth in the Underwriting
       Agreement) that are components of certain securities of the Company
       referred to as Corporate PIES (the "Corporate PIES") will be issued in
       definitive form (the "Certificated Notes") registered in the name of The
       Bank of New York, as Purchase Contract Agent (the "Purchase Contract
       Agent"), under the Purchase Contract Agreement dated as of November 16,
       2001 between the Company and the Purchase Contract Agent (the "Purchase
       Contract Agreement"). Senior Notes that are not components of Corporate
       PIES shall initially be issued in the form of one or more global Senior
       Notes (each a "Global Senior Note") in the name of Cede & Co., as

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       nominee for The Depository Trust Company (the "Depositary"), the initial
       securities depositary for the Global Senior Notes. The Certificated Notes
       and the Global Senior Notes may bear such legends as set forth on EXHIBIT
       A hereto.

       So long as any Senior Notes constitute components of Corporate PIES, they
       shall be issued in the form of Certificated Notes. Senior Notes that no
       longer constitute components of Corporate PIES shall be issued in the
       form of Global Senior Notes. Each Global Senior Note or Certificated
       Note, as applicable, shall represent such of the outstanding Senior Notes
       as shall be specified therein and each shall provide that it shall
       represent the aggregate principal amount of outstanding Senior Notes from
       time to time endorsed thereon and that the aggregate principal amount of
       outstanding Senior Notes represented thereby may from time to time be
       reduced or increased, as appropriate, to reflect exchanges and
       redemptions. Any endorsement of a Global Senior Note to reflect the
       amount of any increase or decrease in the aggregate principal amount of
       outstanding Senior Notes represented thereby shall be made by the
       Trustee, as custodian of the Global Senior Notes (the "Custodian"), in
       accordance with instructions as further set forth below. Any endorsement
       of a Certificated Note to reflect the amount of any decrease in the
       aggregate principal amount of outstanding Certificated Notes represented
       thereby shall be made by the Collateral Agent pursuant to and in
       accordance with instructions as further set forth below.

       No beneficial owner of the Senior Notes shall receive a Certificated Note
       representing such beneficial owner's interest in such Global Senior
       Notes, except as provided in Section 2.06 of the Indenture. Unless and
       until Certificated Notes have been issued to the beneficial owners of the
       Senior Notes pursuant to Section 2.06 of the Indenture, the rights of the
       beneficial owners of the Senior Notes shall be exercised only through the
       Depositary and shall be limited to those established by law and
       agreements between such beneficial owners and the Depositary and/or the
       Depositary Participants. The Depositary shall make book-entry transfers
       among its participants and receive and transmit any payments on the
       Global Senior Notes to such participants; PROVIDED that, solely for the
       purposes of determining whether the Holders of the requisite amount of
       the Senior Notes have voted on any matter provided for in the Indenture,
       the Company may rely conclusively on, and shall be protected in relying
       on, any written instrument (including a proxy) delivered to the Company
       by the Depositary setting forth the votes of the beneficial owners of the
       Senior Notes or assigning the right to vote on any matter to any other
       Persons either in whole or in part.

       The Company shall execute, and the Trustee shall authenticate and
       deliver, in each case, pursuant to Section 2.02 of the Indenture, one or
       more Global Senior Notes that (i) shall represent and be denominated in
       an amount equal to the aggregate principal amount of all of the Senior
       Notes to be issued in the form of Global Senior Notes and not yet
       canceled, (ii) shall be registered in the name of the Depositary for the
       Senior Notes or the nominee of such Depositary and (iii) shall be
       delivered by the Trustee to such Depositary or pursuant to such
       Depositary's instructions.

       Notwithstanding any other provisions of the Indenture (other than the
       provisions set forth in Section 2.06 of the Indenture), Global Senior
       Notes may not be transferred as a whole

                                       2

<Page>

       except by the Depositary to a nominee of the Depositary or by a nominee
       of the Depositary to the Depositary or another nominee of the Depositary
       or by the Depositary or any such nominee to a successor Depositary or a
       nominee of such successor Depositary. Interests of beneficial owners may
       be transferred or exchanged for Senior Notes not represented by a Global
       Senior Note, and Senior Notes not represented by a Global Senior Note may
       be transferred or exchanged for a Global Senior Notes or Senior Notes, in
       accordance with rules of the Depositary and the provisions of Section
       2.06 of the Indenture.

       Upon initial issuance, the Senior Notes shall be pledged to the
       Collateral Agent for the benefit of the Company, pursuant to the terms of
       the Pledge Agreement, as collateral to secure the obligations of the
       Holders of Corporate PIES to purchase the Common Stock in accordance with
       the terms of the Purchase Contract Agreement. The Senior Notes may be
       transferred, in whole or in part, only in accordance with the terms and
       conditions set forth in the Indenture, the Pledge Agreement and the
       Purchase Contract Agreement. To the extent permitted by law, any transfer
       or purported transfer of any Senior Note not made in accordance with the
       Indenture shall be null and void. Subject to this Section, the Senior
       Notes shall be freely transferable.

       If any beneficial interest in a Global Senior Note is exchanged for or
       transferred to a person who will take delivery thereof in the form of a
       beneficial interest in another Global Senior Note or for Certificated
       Notes, the principal amount of Senior Notes represented by such Global
       Senior Note shall be reduced accordingly and an endorsement shall be made
       on such Global Senior Note by the Collateral Agent or by the Depositary
       at the direction of the Trustee to reflect such reduction; and if the
       beneficial interest is being exchanged for or transferred to a person who
       will take delivery thereof in the form of a beneficial interest in
       another Global Senior Note, such other Global Senior Note shall be
       increased accordingly and an endorsement shall be made on such Global
       Senior Note by the Trustee or by the Depositary at the direction of the
       Trustee to reflect such increase.

       In the event that any Pledged Senior Notes are to be released from the
       Pledge of the Pledge Agreement and delivered to the Purchase Contract
       Agent pursuant to Section 5.2(b) of the Pledge Agreement (a "Released
       Note"), as a result of the creation of one or more Treasury PIES as
       provided in Section 5.2 of the Pledge Agreement, such release and
       delivery shall be evidenced by an endorsement by the Collateral Agent on
       the Certificated Note held by the Collateral Agent reflecting a reduction
       in the principal amount of such Certificated Note equal in amount (the
       "Reduced Principal Amount") to the principal amount of the Released Note.
       The Collateral Agent shall confirm any such Reduced Principal Amount by
       telecopying or otherwise delivering a photocopy of such endorsement made
       on the Certificated Note evidencing such Reduced Principal Amount to the
       Trustee at the telecopier number or address of the Purchase Contract
       Agent provided for notices to the Purchase Contract Agent in the Pledge
       Agreement (or at such other telecopier or address as the Trustee shall
       provide to the Collateral Agent). Upon receipt of such confirmation, the
       Trustee shall instruct the Custodian to increase the principal amount of
       a Global Note held by the Custodian in an amount equal to the Reduced
       Principal Amount by an endorsement made by the Custodian on such Global
       Note to reflect such increase.

                                       3

<Page>

       In the event that a Senior Note is transferred to the Collateral Agent
       pursuant to Section 5.3(a) of the Pledge Agreement (a "Subjected Note")
       in connection with the recreation of Corporate PIES as provided in
       Section 5.3 of the Pledge Agreement, such transfer shall be evidenced by
       an endorsement by the Collateral Agent on the Certificated Note held by
       the Collateral Agent reflecting an increase in the principal amount of
       such Certificated Note equal in amount (the "Increased Principal Amount")
       to the principal amount of such Subjected Note. The Collateral Agent
       shall confirm any such Increased Principal Amount by telecopying or
       otherwise delivering a photocopy of such endorsement made on the
       Certificated Note evidencing such Increased Principal Amount to the
       Trustee at the telecopier number or address of the Purchase Contract
       Agent provided for notices to the Purchase Contract Agent in the Pledge
       Agreement (or at such other telecopier or address as the Trustee shall
       provide to the Collateral Agent). Upon receipt of such confirmation, the
       Trustee shall instruct the Custodian to decrease the principal amount of
       the Senior Global Note held by the Custodian in an amount equal to the
       Increased Principal Amount by an endorsement made by the Custodian on
       such Senior Global Note to reflect such decrease.

4.     Not applicable.

5.     Not applicable.

6.     MATURITY. The principal amount of all Outstanding Senior Notes shall be
       payable at their Stated Maturity on November 15, 2007.

7.     INTEREST. The interest rate to be borne by the Senior Notes shall be the
       Coupon Rate from the Issue Date to, but excluding, either (1) the
       Remarketing Settlement Date, if there is a Successful Remarketing, or (2)
       the Purchase Contract Settlement Date, if there is a Failed Remarketing
       or if there is not a Remarketing at all pursuant to clause (c) of the
       definition of "Reset Rate" herein, and, in each case, at the Reset Rate
       thereafter to, but excluding, the Stated Maturity of the Senior Notes.

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

       Any principal of or installment of interest on the Senior Notes that is
       overdue shall bear interest at the interest rate then borne by the Senior
       Notes (to the extent that the payment of such interest shall be legally
       enforceable), from the dates such amounts are due until

                                       4

<Page>

       they are paid or made available for payment, and such interest shall be
       payable on demand by the Holders.

       Interest shall be paid quarterly in arrears on each Interest Payment Date
       to the Person in whose name the Senior Notes are registered on the
       Regular Record Date for such Interest Payment Date; PROVIDED that,
       interest payable at the Stated Maturity of principal as provided herein
       will be paid to the Person to whom principal is payable. Any such
       interest that is not so punctually paid or duly provided for will
       forthwith cease to be payable to the Holders on such Regular Record Date
       and may either be paid to the Person or Persons in whose name the Senior
       Notes are registered at the close of business on a special record date
       (as such term is used in Section 2.12 of the Indenture) for the payment
       of such defaulted interest to be fixed by the Company, notice whereof
       shall be given to Holders of the Senior Notes not less than ten days
       prior to such special record date, or be paid at any time in any other
       lawful manner not inconsistent with the requirements of any securities
       exchange, if any, on which the Senior Notes may be listed, and upon such
       notice as may be required by any such exchange, all as set forth in
       Section 2.12 of the Indenture.

8.     PLACE AND METHOD OF PAYMENT. Payments of the principal of and interest on
       the Senior Notes shall be made by the Company at the office of the Paying
       Agent which shall initially be The Bank of New York, with any such
       payment that is due at the Stated Maturity of any Senior Notes being made
       upon surrender of such Senior Notes to the Paying Agent. Payments of
       interest (including interest on any Interest Payment Date) will be made
       at the option of the Company, (i) by check mailed to the address of the
       Person entitled thereto as such address shall appear in the Security
       Register or (ii) by wire transfer at such place and to such account at a
       banking institution in the United States as may be designated in writing
       to the Trustee at least sixteen days prior to the date for payment by the
       Person entitled thereto.

9.     REDEMPTION. The Senior Notes shall not be redeemable at the option of the
       Company, the Holders or otherwise.

10.    SINKING FUND. There shall be no sinking fund with respect to the Senior
       Notes.

11.    DENOMINATIONS. The Senior Notes shall be issued in denominations of $50,
       or any integral multiple thereof, whether they are issued in global or
       definitive form.

12.    Not applicable.

13.    Not applicable.

14.    Not applicable.

15.    Not applicable.

16.    Not applicable.

                                       5

<Page>

17.    Not applicable.

18.    Not applicable.

19.    (i) REMARKETING RIGHTS.

       (A) The Senior Notes (1) comprising part of Corporate PIES, other than
       those Senior Notes of holders that have elected not to participate in the
       Remarketing pursuant to Section 5.3(e) of the Purchase Contract
       Agreement, and (2) that no longer comprise a part of the Corporate PIES,
       if any, that elect to be included in any Remarketing as set forth in
       Section 5.7 of the Pledge Agreement (collectively, the Senior Notes
       described in clauses (1) and (2), the "Remarketing Senior Notes"), shall
       be remarketed in the Remarketing pursuant to the Remarketing Procedures.
       All holders of Senior Notes described in clause (1) above, including
       those who have attempted to effect a Cash Settlement pursuant to Section
       5.8 of the Purchase Contract Agreement, Early Settlement pursuant to
       Section 5.9 of the Purchase Contract Agreement or Merger Settlement
       pursuant to Section 5.10 of the Purchase Contract Agreement but have
       failed to follow the procedures for such settlements shall be deemed to
       have consented to the Remarketing of their Senior Notes pursuant to the
       Remarketing Procedures in any Remarketing, or in the case of an
       unsuccessful Cash Settlement, in the Final Remarketing. The right of each
       Holder of Senior Notes to have its Senior Notes remarketed will be
       limited, however, to the extent that (i) the Remarketing Agent conducts a
       Remarketing pursuant to the terms of the Remarketing Agreement, (ii) the
       Remarketing Agent is able to find a purchaser or purchasers for the
       tendered Senior Notes, (iii) such purchaser or purchasers deliver the
       purchase price therefor to the Remarketing Agent and (iv) the Remarketing
       may not commence or be consummated pursuant to applicable law. In
       addition, all holders of Senior Notes shall be deemed to have consented
       to the Remarketing Procedures and the terms of the Purchase Contract
       Agreement, the Pledge Agreement and the Remarketing Agreement with
       respect to the pledge and transfer and other provisions of these
       agreements with respect to their Senior Notes, pursuant to the terms of
       such agreements.

       (B) Holders of Senior Notes comprising part of Corporate PIES may elect
       not to participate in the Remarketing by creating Treasury PIES if they
       notify the Purchase Contract Agent of such election and deliver the
       specific U.S. Treasury Security or U.S. Treasury Securities not later
       than 5:00 p.m. (New York City time) on the Election Date. A Holder that
       has not timely created Treasury PIES by delivering the Treasury Security
       or Treasury Securities pursuant to this paragraph and Section 3.13 of the
       Purchase Contract Agreement shall be deemed to have elected to
       participate in any Remarketing.

       (C) Holders of Separated Senior Notes may elect to have such Separated
       Senior Notes remarketed, if such holder delivers (a) to the Trustee and
       the Collateral Agent a notice of that election, by use of a notice in
       substantially the form of EXHIBIT B, specifying the aggregate principal
       amount of Senior Notes to be remarketed, and (b) such Separated Senior
       Notes, by book-entry transfer or other appropriate procedures, to the
       Collateral Agent for Remarketing, in each case, by 5:00 p.m. (New York
       City time) on the Election Date. Once the holder of such Separated Senior
       Notes delivers such notice and Separated Senior Notes as specified in the
       preceding sentence, such election may not be withdrawn

                                       6

<Page>

       and may not be conditioned upon the level at which the Reset Rate is
       established in the Remarketing; PROVIDED, HOWEVER, that if such a holder
       delivers only such a notice but not the Separated Senior Notes subject to
       the notice, or vice versa, then none of such holder's Separated Senior
       Notes shall be included in the Remarketing. On the Business Day
       immediately preceding the Initial Remarketing Date, the Collateral Agent
       shall notify the Remarketing Agent of the aggregate number of Separated
       Senior Notes to be remarketed. If there is a Successful Remarketing, the
       Collateral Agent shall transfer such Separated Senior Notes in accordance
       with the instructions provided by the Remarketing Agent pursuant to the
       Remarketing Agreement. If a Failed Remarketing occurs, the Collateral
       Agent shall Transfer such Separated Senior Notes to the holders by the
       end of the Business Day following the Failed Remarketing.

       (ii) REMARKETING AND RATE RESET PROCEDURES.

       (A) On the seventh Business Day prior to the Initial Remarketing Date or
       the Final Remarketing Date, as applicable, the Company shall give notice
       of the Remarketing in an Authorized Newspaper, including the specific
       U.S. Treasury Security or Treasury Securities (including the CUSIP number
       and/or the principal terms of such Treasury Security or Treasury
       Securities) that must be delivered by Holders of Corporate PIES that
       elect not to participate in the Remarketing pursuant to Section 5.3(e) of
       the Purchase Contract Agreement, no later than 5:00 p.m. (New York City
       time) on the Election Date. Promptly after 11:00 a.m. (New York City
       time) on the Business Day preceding the Initial Remarketing Date or the
       Final Remarketing Date, as applicable, the Purchase Contract Agent shall
       notify the Remarketing Agent, the Company, the Collateral Agent and the
       Trustee of the aggregate principal amount of Pledged Senior Notes to be
       remarketed and the Collateral Agent, having separately notified the
       Remarketing Agent, the Trustee and the Company of the aggregate principal
       amount of Separated Senior Notes to be included in the Remarketing by
       11:00 a.m. (New York City time), on the Business Day immediately
       preceding the Initial Remarketing Date or the Final Remarketing Date, as
       applicable, shall concurrently therewith, pursuant to the Pledge
       Agreement, deliver for Remarketing to the Remarketing Agent all
       Remarketing Senior Notes.

       (B) The Remarketing Agent shall use its commercially reasonable efforts
       to remarket the Remarketing Senior Notes pursuant to the Remarketing
       Agreement. If there is a Successful Remarketing, by approximately 4:30
       p.m. (New York City time), on the Remarketing Date, the Remarketing Agent
       shall advise, by telephone, the Trustee and the other parties specified
       in the Purchase Contract Agreement, of the Reset Rate determined in the
       Remarketing and the number of Remarketing Senior Notes remarketed in the
       Remarketing.

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

       (I)     deduct and retain an amount equal to .25% of the proceeds of the
               principal amount of the Remarketing Senior Notes for the
               performance of its services as Remarketing Agent;

                                       7

<Page>

       (II)    if the Successful Remarketing occurs prior to the third Business
               Day preceding the Purchase Contract Settlement Date, use the
               remaining proceeds with respect to the Pledged Senior Notes from
               such Successful Remarketing to purchase the Treasury Portfolio,
               in open market transactions and/or at Treasury auctions, in the
               amount and types of Treasury securities describe in clauses
               (1)(i) and (2)(i) of the definition of Remarketing Value related
               to the Pledged Senior Notes, and, on or prior to the third
               Business Day following the Remarketing Date (such date of
               settlement of the Remarketing, the "Remarketing Settlement Date")
               deliver such Treasury Portfolio to the Collateral Agent, or (II)
               if such Successful Remarketing occurs on the Final Remarketing
               Date, remit to the Collateral Agent the portion of the remaining
               proceeds with respect to the Pledged Senior Notes from such
               Successful Remarketing to be delivered to the Purchase Contract
               Agent in settlement of the Purchase Contracts;

       (III)   if any Separated Senior Notes were included in such successful
               Remarketing, remit to the Collateral Agent the remaining portion
               of the proceeds from the Successful Remarketing of such Separated
               Senior Notes in an amount described in clauses (1)(ii) and
               (2)(ii) of the definition of Remarketing Value for payment by the
               Collateral Agent to the holders of such Separated Senior Notes;
               and

       (IV)    remit any remaining balance of such proceeds after the
               application of such proceeds as set forth in clauses (I) through
               (III) above, if any, to the Purchase Contract Agent for the
               benefit of the Holders of the remarketed Pledged Senior Notes and
               to the Collateral Agent for the holders of any remarketed
               Separated Senior Notes on a pro rata basis;

       PROVIDED, HOWEVER, that if such Successful Remarketing is consummated
       after 4:30 p.m. (New York City time) on such Remarketing Date and,
       despite using its commercially reasonable efforts, the Remarketing Agent
       cannot cause the applications of the proceeds specified above to occur on
       such Remarketing Date, then the Remarketing Agent may make such
       applications and remittances on the next succeeding Business Day.

       Any distributions to Holders of funds described in paragraphs (I) through
       (IV) above shall be payable at the office of the Purchase Contract Agent
       in The City of New York maintained for that purpose or, at the option of
       the Holder or the holder of Separated Senior Notes, as applicable, by
       check mailed to the address of the Person entitled thereto at such
       address as it appears on the Register or by wire transfer in immediately
       available funds to an account specified by the Holder or the holder of
       Separated Senior Notes, as applicable.

       (C) If a Failed Remarketing occurs:

       (I)     The Remarketing Agent shall notify by telephone by 4:00 p.m. (New
               York City time) on the Final Remarketing Date telephone the
               Depositary, the

                                       8

<Page>

               Trustee, the Purchase Contract Agent, the Collateral Agent and
               the Company that a Failed Remarketing has occurred.

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

       (III)   By the third Business Day following the Failed Remarketing, the
               Remarketing Agent shall remit (A) to the Collateral Agent the
               Remarketing Senior Notes that were formerly components of the
               Corporate PIES and (B) to the Collateral Agent the Separated
               Senior Notes, whereupon the Collateral Agent shall transfer such
               Separated Senior Notes to the related Holders thereof.

       (IV)    The Remarketing Agent shall determine the Reset Rate that will be
               equal to the Two Year Benchmark Treasury in effect on the
               Purchase Contract Settlement Date plus the Applicable Spread.

       (V)     The Collateral Agent, under the Pledge Agreement and for the
               benefit of the Company, may, on the written direction of the
               Company, exercise its rights as a secured party with respect to
               such Pledged Senior Notes, including those actions specified
               below; PROVIDED that, if upon a Failed Remarketing, the
               Collateral Agent exercises such rights for the benefit of the
               Company with respect to such Pledged Senior Notes, any
               accumulated and unpaid interest on such Senior Notes will become
               payable by the Company to the Purchase Contract Agent for payment
               to the Holders of the Corporate PIES to which such Senior Notes
               relates. Such payment will be made by the Company on or prior to
               11:00 a.m. (New York City time), on the Purchase Contract
               Settlement Date in lawful money of the United States by wire
               transfer in immediately available funds payable to or upon the
               order of the Purchase Contract Agent.

       With respect to any Pledged Senior Notes which are subject of a Failed
       Remarketing, 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, may, on the written direction of the Company,
       (i) retain such Senior Notes in full satisfaction of the Holders'
       obligations under the related Purchase Contracts or (ii) sell such Senior
       Notes in one or more public or private sales.

       (D) If all of the holders of Corporate PIES elect not to participate in
       the Remarketing and no holders of Senior Notes that are not a component
       of Corporate PIES elect to participate in the Remarketing and deliver
       their Senior Notes and a notice of such election to the Collateral Agent,
       pursuant to and in accordance with the Pledge Agreement then, (i) the
       Remarketing Agent shall, in its sole discretion, determine the rate that,
       in its judgment, would have been established had a Remarketing been held
       on the Remarketing Date, and such rate shall be the Reset Rate; and (ii)
       by approximately 4:30

                                       9

<Page>

       p.m. (New York City time), on the third Business Day preceding the
       Purchase Contract Settlement Date, the Remarketing Agent shall advise by
       telephone (promptly confirmed in writing), the Trustee and the Company of
       such Reset Rate, whereupon the Company shall notify the Depositary in
       writing of such Reset Rate. The Remarketing Agent's calculation of the
       Reset Rate shall be conclusive and binding and the Trustee shall have no
       responsibility for the calculation thereof.

       (iii) DEPOSITARY'S PROCEDURES, ETC.

       So long as the Corporate PIES, Treasury PIES or the Senior Notes are
       evidenced by one or more Global Senior Notes deposited with the
       Depositary or its nominee, the Company shall request, not later than 15
       calendar days nor more than 30 calendar days prior to the Remarketing
       Date, that the Depositary notify, directly or indirectly, each beneficial
       owner of a Corporate PIES and a Separated Senior Note of the impending
       Remarketing.

       In accordance with the Depositary's normal procedures, on the Remarketing
       Settlement Date or the Purchase Contract Settlement Date, as applicable,
       the transactions described above with respect to each Senior Note
       tendered for purchase and sold in the Remarketing shall be executed
       through the Depositary, and the accounts of the respective Depositary
       Participants shall be debited and credited and such Senior Notes
       delivered by book entry as necessary to effect purchases and sales of
       such Senior Notes. The Depositary shall make payment in accordance with
       its normal procedure; PROVIDED that, the procedures set forth herein,
       including provisions for payment by purchasers of the Senior Notes in the
       Remarketing, shall be subject to modification to the extent required by
       the Depositary or if the book-entry system is no longer available for the
       Senior Notes at the time of the Remarketing, to facilitate the
       remarketing of the Senior Notes in certificated form, and shall provide
       for the authentication and delivery of Senior Notes in a principal amount
       equal to the unremarketed portion of such Senior Notes. In addition, the
       Remarketing Agent may modify, the settlement procedures set forth herein
       in order to facilitate the settlement process.

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

       (iv) OTHER MATTERS REGARDING REMARKETING.

       (A) The Remarketing Agent may purchase Remarketing Senior Notes for its
       own account. However, under no circumstances, shall the Remarketing Agent
       be obligated to purchase any Senior Notes in connection with a
       Remarketing and neither the Company

                                       10

<Page>

       nor the Remarketing Agent shall be obligated to provide or liable for any
       payment upon tender of Senior Notes in a Remarketing.

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

       (C) Notwithstanding the Pledge and, if applicable, the delivery of
       Separated Senior Notes to the Collateral Agent for Remarketing, in each
       case, as set forth herein, the Company's obligation to pay interest,
       including any accrued and unpaid interest, on all outstanding Senior
       Notes (whether then comprising a part of Corporate PIES or as Separated
       Senior Notes) pursuant to the Indenture shall remain unconditional and
       absolute.

       (v) TAX TREATMENT. The Company agrees, and by purchasing a beneficial
       ownership interest in the Senior Notes each Holder of Senior Notes will
       be deemed to have agreed, for United States federal income tax purposes
       (a) to treat the acquisition of a Corporate PIES as the acquisition of a
       unit consisting of a stock purchase contract and a senior note issued by
       the Company and to treat the Senior Notes as indebtedness that is subject
       to Treas. Reg. Sec. 1.1275-4 (the "Contingent Payment Regulations") and
       (b) to be bound by the Company's determination of the "comparable yield"
       and "project payment schedule," within the meaning of the Contingent
       Payment Regulations, with respect to the Senior Notes. The Company has
       determined that the comparable yield is an annual rate of 8.12%,
       compounded quarterly. Based on the comparable yield, the projected
       payment schedule per senior note is $0.9802 for the period ending on
       February 15, 2002, $0.9913 for each subsequent quarter ending on or prior
       to the initial remarketing date and $1.0663 for each quarter ending after
       the initial remarketing date (which does not include the payment of
       principal at maturity).

20.    DEFINITIONS.

       "Applicable Spread" means the spread corresponding to the Prevailing
Rating of the Senior Notes, as set forth below, in effect at the close of
business on the Business Day immediately preceding the date of the Failed
Remarketing, if applicable:

<Table>
<Caption>
         PREVAILING RATING                           SPREAD
         -----------------                           ------
<S>                                                  <C>
         AA/Aa2................................      3.00%
         A/A2..................................      4.00%
         BBB/Baa2..............................      5.00%
         Below BBB/Baa2........................      7.00%
</Table>

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

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

                                       11

<Page>

       "Cash Settlement" has the meaning set forth in Section 5.8(a)(i) of the
Purchase Contract Agreement.

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

       "Early Settlement" has the meaning set forth in Section 5.9(a) of the
Purchase Contract Agreement.

       "Election Date" means the fourth Business Day prior to the Initial
Remarketing Date.

       "Failed Remarketing" has the meaning set forth in Section 5.3(c) of the
Purchase Contract Agreement.

       "Final Remarketing Date" has the meaning set forth in Section 1 of the
Remarketing Agreement.

       "Holder" means the beneficial holder of any Senior Notes, whether Pledged
Senior Notes or Separated Senior Notes.

       "Initial Remarketing" has the meaning set forth in Section 2(b) of the
Remarketing Agreement.

       "Initial Remarketing Date" has the meaning set forth in Section 2(b) of
the Remarketing Agreement.

       "Interest Payment Dates" means February 15, May 15, August 15 and
November 15 of each year, commencing on February 15, 2002.

       "Issue Date" means November 16, 2001.

       "Merger Early Settlement" has the meaning set forth in Section 5.10 of
the Purchase Contract Agreement.

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

       (a) Senior Notes theretofore canceled by the Trustee or delivered to the
Trustee for cancellation;

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

                                       12

<Page>

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

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

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

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

       "Pledge Agreement" means the Pledge Agreement, dated as of November 16,
2001, among the Company, Wells Fargo Bank Minnesota, National Association, as
Collateral Agent and Securities Intermediary, and The Bank of New York, as
Purchase Contract Agent, as the same may be amended, modified or supplemented
from time to time in accordance with the terms thereof.

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

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

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

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

       (c) if not under clauses (i) or (ii) above, then BBB/Baa2 if the Senior
Notes have a credit rating of BBB or better by S&P AND Baa2 or better by Moody's
or the equivalent of such

                                       13

<Page>

ratings by such agencies or a substitute rating agency or substitute rating
agencies selected by the Remarketing Agent; or

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

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

       "Purchase Contract Agreement" means the Purchase Contract Agreement,
dated as of November 16, 2001, between the Company and The Bank of New York, as
Purchase Contract Agent, as the same may be amended, modified or supplemented
from time to time in accordance with the terms thereof.

       "Purchase Contract Settlement Date" means November 15, 2005, which is the
fourth anniversary of the issuance of the PIES under the Purchase Contract
Agreement.

       "Regular Record Date" means, with respect to each Interest Payment Date,
the close of business on the 15th Business Day preceding such Interest Payment
Date, whether the Senior Notes are then issued in global or definitive form.

       "Remarketing" means the remarketing of the Remarketing Senior Notes
pursuant to this Officers' Certificate, the Purchase Contract Agreement, the
Pledge Agreement and the Remarketing Agreement.

       "Remarketing Agent" has the meaning set forth in Section 5.3(b) of the
Purchase Contract Agreement.

       "Remarketing Agreement" means the Remarketing Agreement, dated as of
November 16, 2001 between the Company and the Remarketing Agent, as the same may
be amended, modified or supplemented from time to time in accordance with the
terms thereof.

       "Remarketing Procedures" means, collectively, the procedures and
requirements relating to the Remarketing and the determination of the Reset Rate
as set forth in this Officers' Certificate, the Purchase Contract Agreement, the
Pledge Agreement and the Remarketing Agreement.

       "Remarketing Senior Notes" has the meaning set forth in paragraph
19(i)(A).

                                       14

<Page>

       "Remarketing Settlement Date" means the date of the settlement of any
Successful Remarketing, which will be three Business Days after such
Remarketing.

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

       "Reset Rate" means the interest rate per annum with respect to the Senior
Notes that is determined by the Remarketing Agent pursuant to the Remarketing
Agreement as follows:

       (a) in connection with a Successful Remarketing, the interest rate
determined by the Remarketing Agent sufficient to allow it to remarket the
Remarketing Senior Notes at a price at least equal to the Remarketing Value;

       (b) upon the occurrence of a Failed Remarketing, the Two-Year Benchmark
Rate plus the Applicable Spread; or

       (c) if (i) the holders of Pledged Senior Notes have elected not to have
their Senior Notes remarketed in accordance with Section 5.3(e) of the Purchase
Contract Agreement and (ii) none of the holders of Separated Senior Notes have
elected to have their Senior Notes remarketed in accordance with paragraph
19(i)(C) of this Officers' Certificate and Section 5.7 of the Pledge Agreement,
the Reset Rate shall be the rate determined, in its sole discretion, by the
Remarketing Agent, as the rate that, in its judgment, would have been
established had a Remarketing being held on the Final Remarketing Date.

       "Securities Act" means the Securities Act of 1933, as amended from time
to time, or any successor legislation, and the rules and regulations promulgated
thereunder.

       "Separated Senior Notes" means Senior Notes that are not Pledged Senior
Notes.

       "Stated Maturity" means November 15, 2007.

       "Subsequent Remarketing" has the meaning set forth in Section 2(c) of the
Remarketing Agreement.

       "Subsequent Remarketing Date" has the meaning set forth in Section 2(c)
of the Remarketing Agreement.

       "Successful Remarketing has the meaning set forth in Section 2(d) of the
Remarketing Agreement.

       "Telerate" means the Moneyline Telerate Service.

       "Transfer" has the meaning set forth in the Pledge Agreement.

       "Treasury PIES" has the meaning set forth in 1.1(d) of the Purchase
Contract Agreement.

       "Treasury Security" has the meaning set forth in 1.1(d) of the Purchase
Contract Agreement.

                                       15

<Page>

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

       "Underwriters" means Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner
& Smith, Incorporated, Goldman, Sachs & Co. and First Union Securities, Inc., as
underwriters under the Underwriting Agreement.

       "Underwriting Agreement" means the Underwriting Agreement dated November
16, 2001 between the Company and the Underwriters.

       The undersigned officers of the Company do hereby further certify,
pursuant to Sections 13.04 and 13.05 of the Indenture, as follows:

       (1) We have read the covenants and conditions of the Indenture relating
       to the issuance authentication and delivery of the Senior Notes and in
       respect of compliance with which this certificate is furnished, and the
       definitions in the Indenture relating thereto;

       (2) The statements contained in this certificate are based upon our
       familiarity with the Indenture, the documents accompanying this
       certificate and, as to factual matters, upon our discussions with
       officers and employees of the Company familiar with the facts relating to
       the matters set forth herein;

       (3) In our opinion, we have made such examination or investigation as is
       necessary to enable us to express an informed opinion as to whether or
       not such covenants and conditions have been complied with; and

                                       16

<Page>

       (4) In our opinion, such conditions and covenants, and all conditions
       precedent, if any (including any covenants compliance with which
       constitutes a condition precedent) relating to the authentication and
       delivery by the Trustee of the Senior Notes requested to be authenticated
       and delivered on the date hereof, have been complied with.

                                       17

<PAGE>

       IN WITNESS WHEREOF, the undersigned has executed this Officers'
Certificate as of the date first written above.

                                         By:
                                            ------------------------------------
                                            Richard K. Atkinson
                                            Treasurer and Investor Relations
                                            Officer

                                         By:
                                            ------------------------------------
                                            Dennis D. Schiffel
                                            Senior Vice President and Chief
                                            Financial Officer

Acknowledged and Received on
November __, 2001

THE BANK OF NEW YORK,
as Trustee

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

                                       18

<PAGE>

                                                                       EXHIBIT A

                       FORM OF 7.93% SENIOR NOTE DUE 2007

       [This Senior Note is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of the
Depository Trust Company, a New York corporation (the "Depository"), or a
nominee thereof. This Senior Note may not be exchanged in whole or in part for a
security registered, and no transfer of this senior note in whole or in part may
be registered, in the name of any person other than such depositary or a nominee
thereof, except in the limited circumstances described in the Indenture.]**

       [Unless this certificate is presented by an authorized representative of
the Depositary, to Sierra Pacific Resources or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. Or in such other name as requested by an authorized
representative of DTC and any payment is made to Cede & Co., ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein.]**

                            SIERRA PACIFIC RESOURCES

                           7.93% SENIOR NOTE DUE 2007

NO.: __________                                           CUSIP NO.:  __________

$______________

       SIERRA PACIFIC RESOURCES, a corporation duly organized and existing under
the laws of the State of Nevada (herein called the "Company", which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to [Cede & Co.]**, or registered assigns
(the "Holder"), the principal sum of _________ Dollars ($_______) [, or such
other principal amount as shall be set forth in the Schedule of Increases or
Decreases attached hereto,]*** on November15, 2007 in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public or private debts and to pay interest thereon from November 16,
2001 or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, quarterly in arrears on February 15, May 15, August
15 and November 15 of each year, commencing on February 15, 2002, at the rate of
7.93% per annum to, but excluding, either (1) the Remarketing Settlement Date,
if there has been a Successful Remarketing, or (2) the Purchase Contract
Settlement Date, if a Failed Remarketing has occurred or, if there is not a
Remarketing at all pursuant to clause (c) of the definition of "Reset Rate" in
the Officers' Certificate, and at the Reset Rate thereafter, until the principal
hereof is paid or made available for payment.

--------
**     Insert in Global Securities.

***    Insert in Global Securities and Pledged Senior Notes.

<Page>

                                                                             A-2

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

       Any principal of or installment of interest on the Senior Notes that is
overdue shall bear interest at the interest rate then borne by the Senior Notes
(to the extent that the payment of such interest shall be legally enforceable),
from the dates such amounts are due until they are paid or made available for
payment, and such interest shall be payable on demand by the Holders.

       Interest shall be paid quarterly in arrears on each Interest Payment Date
to the Person in whose name the Senior Notes are registered on the Regular
Record Date for such Interest Payment Date; PROVIDED that, interest payable at
the Stated Maturity of principal as provided herein will be paid to the Person
to whom principal is payable. Any such interest that is not so punctually paid
or duly provided for will forthwith cease to be payable to the Holders on such
Regular Record Date and may either be paid to the Person or Persons in whose
name the Senior Notes are registered at the close of business on a special
record date (as such term is used in Section 2.12 of the Indenture) for the
payment of such defaulted interest to be fixed by the Company, notice whereof
shall be given to Holders of the Senior Notes not less than ten days prior to
such special record date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange, if any, on which
the Senior Notes may be listed, and upon such notice as may be required by any
such exchange, all as set forth in Section 2.12 of the Indenture.

       The principal amount of this Senior Note may be increased or decreased as
specified in the Officers' Certificate pursuant to which this Senior Note is
issued.

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

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

                                       2

<Page>

                                                                             A-3

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

Dated:                                   SIERRA PACIFIC RESOURCES

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

                          CERTIFICATE OF AUTHENTICATION

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

                                         THE BANK OF NEW YORK, as Trustee

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

                                       3

<PAGE>

                                                                             A-4

                            [REVERSE OF SENIOR NOTE]

       1. INDENTURE; NOTES.

          This Senior Note is one of a duly authorized series of Securities of
the Company (the "Senior Notes"), issued and to be issued in one or more series
under an Indenture, dated as of May 1, 2000 (the "Indenture"), between the
Company and The Bank of New York, as Trustee (the "Trustee", which term includes
any successor trustee under the Indenture), and reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. The terms, conditions and provisions of the
Securities are those stated in the Indenture, those made part of the Indenture
by reference to the Trust Indenture Act of 1939, as amended, and those set forth
in this Senior Note. To the extent that the terms, conditions and other
provisions of this Senior Note modify, supplement or are consistent with those
of the Indenture, the terms, conditions and other provisions of the Indenture
shall govern.

       The maximum aggregate principal amount of Senior Notes that may be
authenticated and delivered under the Indenture (except for Senior Notes
authenticated and delivered upon registration or transfer of or in exchange for,
or in lieu of other Senior Notes pursuant to Section 2.06, 2.07, 2.09 or 3.07 of
the Indenture) shall be $300,000,000 (or up to $345,000,000 if the Underwriters
exercise their over-allotment option as set forth in the Underwriting
Agreement). The Senior Notes are issuable only in denominations of $50 and any
integral multiple thereof.

       All capitalized terms that are used but not defined in this Senior Note
shall have the meanings assigned to them in the Officers' Certificate.

       2. RANKING.

       The Senior Notes shall constitute the senior, unsecured and
unsubordinated debt obligations of the Company and shall rank equally in right
of payment with all other existing and future senior, unsecured and
unsubordinated debt obligations of the Company.

       3. FORM; TRANSFER, REGISTRATION AND EXCHANGE.

       Initially, the Senior Notes (including the Senior Notes, if any, issued
pursuant to the exercise of the Underwriters' over-allotment option as set forth
in the Underwriting Agreement) that are components of certain securities of the
Company referred to as Corporate PIES (the "Corporate PIES") will be issued in
definitive form (the "Certificated Notes") registered in the name of The Bank of
New York, as Purchase Contract Agent (the "Purchase Contract Agent"), under the
Purchase Contract Agreement dated as of November 16, 2001 between the Company
and the Purchase Contract Agent (the "Purchase Contract Agreement"). Senior
Notes that are not components of Corporate PIES shall initially be issued in the
form of one or more global Senior Notes (each a "Global Senior Note") in the
name of Cede & Co. (as nominee for The Depository Trust Company (the
"Depository"), the initial securities depository for the Global Senior Notes.
The Certificated Notes and the Global Senior Notes may bear such legends as
either the Purchase Contract Agent or DTC, respectively, may reasonably request.

                                       4

<Page>

                                                                             A-5

       So long as any Senior Notes constitute components of Corporate PIES, they
shall be issued in the form of Certificated Notes. Senior Notes that no longer
constitute components of Corporate PIES shall be issued in the form of Global
Senior Notes. Each Global Senior Note or Certificated Note, as applicable, shall
represent such of the outstanding Senior Notes as shall be specified therein and
each shall provide that it shall represent the aggregate principal amount of
outstanding Senior Notes from time to time endorsed thereon and that the
aggregate principal amount of outstanding Senior Notes represented thereby may
from time to time be reduced or increased, as appropriate, to reflect exchanges
and redemptions. Any endorsement of a Global Senior Note to reflect the amount
of any increase or decrease in the aggregate principal amount of outstanding
Senior Notes represented thereby shall be made by the Trustee, as custodian of
the Global Senior Notes (the "Custodian"), in accordance with instructions as
further set forth below. Any endorsement of a Certificated Note to reflect the
amount of any decrease in the aggregate principal amount of outstanding
Certificated Notes represented thereby shall be made by the Collateral Agent
pursuant to and in accordance with further instructions as set forth below.

       No beneficial owner of the Senior Notes shall receive a Certificated Note
representing such beneficial owner's interest in such Global Senior Notes,
except as provided in Section 2.06 of the Indenture. Unless and until
Certificated Notes have been issued to the beneficial owners of the Senior Notes
pursuant to Section 2.06 of the Indenture, the rights of the beneficial owners
of the Senior Notes shall be exercised only through the Depositary and shall be
limited to those established by law and agreements between such beneficial
owners and the Depositary and/or the Depositary Participants. The Depositary
shall make book-entry transfers among its participants and receive and transmit
any payments on the Global Senior Notes to such participants; PROVIDED that,
solely for the purposes of determining whether the Holders of the requisite
amount of the Senior Notes have voted on any matter provided for in the
Indenture, the Company may rely conclusively on, and shall be protected in
relying on, any written instrument (including a proxy) delivered to the Company
by the Depositary setting forth the votes of the beneficial owners of the Senior
Notes or assigning the right to vote on any matter to any other Persons either
in whole or in part. The Senior Notes are subject to transfer, registration and
exchange as set forth in Section 2.06 of the Indenture, as supplemented by the
Officers' Certificate.

       The Company shall execute, and the Trustee shall authenticate and
deliver, in each case, pursuant to Section 2.02 of the Indenture, one or more
Global Senior Notes that (i) shall represent and be denominated in an amount
equal to the aggregate principal amount of all of the Senior Notes to be issued
in the form of Global Senior Notes and not yet canceled, (ii) shall be
registered in the name of the Depositary for the Senior Notes or the nominee of
such Depositary and (iii) shall be delivered by the Trustee to such Depositary
or pursuant to such Depositary's instructions.

       Reference is hereby made to Section 2.06 of the Indenture for the
provisions relating to the transfer, registration and exchange of the Senior
Notes. Notwithstanding any other provisions of the Indenture (other than the
provisions set forth in Section 2.06 of the Indenture), Global Senior Notes may
not be transferred as a whole except by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of

                                       5

<Page>

                                                                             A-6

such successor Depositary. Interests of beneficial owners may be transferred or
exchanged for Senior Notes not represented by a Global Senior Note, and Senior
Notes not represented by a Global Senior Note may be transferred or exchanged
for a Global Senior Notes or Senior Notes, in accordance with rules of the
Depositary and the provisions of Section 2.06 of the Indenture.

       If any beneficial interest in a Global Senior Note is exchanged for or
transferred to a person who will take delivery thereof in the form of a
beneficial interest in another Global Senior Note or for Certificated Notes, the
principal amount of Senior Notes represented by such Global Senior Note shall be
reduced accordingly and an endorsement shall be made on such Global Senior Note
by the Collateral Agent or by the Depositary at the direction of the Trustee to
reflect such reduction; and if the beneficial interest is being exchanged for or
transferred to a person who will take delivery thereof in the form of a
beneficial interest in another Global Senior Note, such other Global Senior Note
shall be increased accordingly and an endorsement shall be made on such Global
Senior Note by the Trustee or by the Depositary at the direction of the Trustee
to reflect such increase.

       In the event that any Pledged Senior Notes are to be released from the
Pledge of the Pledge Agreement and delivered to the Purchase Contract Agent
pursuant to Section 5.2(b) of the Pledge Agreement (a "Released Note"), as a
result of the creation of one or more Treasury PIES as provided in Section 5.2
of the Pledge Agreement, such release and delivery shall be evidenced by an
endorsement by the Collateral Agent on the Certificated Note held by the
Collateral Agent reflecting a reduction in the principal amount of such
Certificated Note equal in amount (the "Reduced Principal Amount") to the
principal amount of the Released Note. The Collateral Agent shall confirm any
such Reduced Principal Amount by telecopying or otherwise delivering a photocopy
of such endorsement made on the Certificated Note evidencing such Reduced
Principal Amount to the Trustee at the telecopier number or address of the
Purchase Contract Agent provided for notices to the Purchase Contract Agent in
the Pledge Agreement (or at such other telecopier or address as the Trustee
shall provide to the Collateral Agent). Upon receipt of such confirmation, the
Trustee shall instruct the Custodian to increase the principal amount of a
Global Note held by the Custodian in an amount equal to the Reduced Principal
Amount by an endorsement made by the Custodian on such Global Note to reflect
such increase.

       In the event that a Senior Note is transferred to the Collateral Agent
pursuant to Section 5.3(a) of the Pledge Agreement (a "Subjected Note") in
connection with the recreation of Corporate PIES as provided in Section 5.3 of
the Pledge Agreement, such transfer shall be evidenced by an endorsement by the
Collateral Agent on the Certificated Note held by the Collateral Agent
reflecting an increase in the principal amount of such Certificated Note equal
in amount (the "Increased Principal Amount") to the principal amount of such
Subjected Note. The Collateral Agent shall confirm any such Increased Principal
Amount by telecopying or otherwise delivering a photocopy of such endorsement
made on the Certificated Note evidencing such Increased Principal Amount to the
Trustee at the telecopier number or address of the Purchase Contract Agent
provided for notices to the Purchase Contract Agent in the Pledge Agreement (or
at such other telecopier or address as the Trustee shall provide to the
Collateral Agent). Upon receipt of such confirmation, the Trustee shall instruct
the Custodian to decrease the principal amount of the Senior Global Note held by
the Custodian in an amount equal to the

                                       6

<Page>

                                                                             A-7

Increased Principal Amount by an endorsement made by the Custodian on such
Senior Global Note to reflect such decrease.

       4. PLEDGE.

       Upon initial issuance, the Senior Notes shall be pledged to the
Collateral Agent for the benefit of the Company, pursuant to the terms of the
Pledge Agreement, as collateral to secure the obligations of the Holders of
Corporate PIES to purchase the Common Stock in accordance with the terms of the
Purchase Contract Agreement. The Senior Notes may be transferred, in whole or in
part, only in accordance with the terms and conditions set forth in the
Indenture, the Pledge Agreement and the Purchase Contract Agreement. To the
fullest extent permitted by law, any transfer or purported transfer of any
Senior Note not made in accordance with the Indenture shall be null and void.
Subject to this Section, the Senior Notes shall be freely transferable.

       5. PLACE AND METHOD OF PAYMENT.

       Payments of the principal of and interest on the Senior Notes shall be
made at the office of the Paying Agent, with any such payment that is due at the
Stated Maturity of any Senior Notes being made upon surrender of such Senior
Notes to the Paying Agent. Payments of interest (including interest on any
Interest Payment Date) will be made at the option of the Company, (i) by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register or (ii) by wire transfer at such place and to
such account at a banking institution in the United States as may be designated
in writing to the Trustee at least sixteen days prior to the date for payment by
the Person entitled thereto.

       6. NO REDEMPTION OR SINKING FUND.

       The Senior Notes shall not be redeemable at the option of the Company,
the Holders or otherwise; and there shall be no sinking fund with respect to the
Senior Notes.

       7. REMARKETING.

       (i) REMARKETING RIGHTS. (A) The Remarketing Senior Notes shall be
remarketed in the Remarketing pursuant to the Remarketing Procedures. All
holders of PIES Senior Notes, including those who have attempted to effect a
Cash Settlement pursuant to Section 5.8 of the Purchase Contract Agreement,
Early Settlement pursuant to Section 5.9 of the Purchase Contract Agreement or
Merger Settlement pursuant to Section 5.10 of the Purchase Contract Agreement
but have failed to follow the procedures for such settlements shall be deemed to
have consented to the Remarketing of their Senior Notes pursuant to the
Remarketing Procedures in any Remarketing, or in the case of an unsuccessful
Cash Settlement, in the Final Remarketing. The right of each Holder of Senior
Notes to have its Senior Notes remarketed will be limited, however, to the
extent that (i) the Remarketing Agent conducts a Remarketing pursuant to the
terms of the Remarketing Agreement, (ii) the Remarketing Agent is able to find a
purchaser or purchasers for the tendered Senior Notes, (iii) such purchaser or
purchasers deliver the purchase price therefor to the Remarketing Agent and (iv)
the Remarketing may not commenced or be consummated pursuant to applicable law.
In addition, all holders of Senior Notes shall be deemed to have consented to
the Remarketing Procedures and the terms of the Purchase Contract

                                       7

<Page>

                                                                             A-8

Agreement, the Pledge Agreement and the Remarketing Agreement with respect to
the pledge and transfer and other provisions of these agreements with respect to
their Senior Notes, pursuant to the terms of such agreements.

       (B) Holders of Senior Notes comprising part of Corporate PIES may elect
not to participate in the Remarketing by creating Treasury PIES if it notifies
the Purchase Contract Agent of such election and delivers the specific U.S.
Treasury Security or U.S. Treasury Securities not later than 5:00 p.m. (New York
City time) on the Election Date. A Holder that has not so created Treasury PIES
by delivering the Treasury Security or Treasury Securities pursuant to this
paragraph and Section 3.13 of the Purchase Contract Agreement shall be deemed to
have elected to participate in any Remarketing.

       (C) Holders of Separated Senior Notes may elect to have such Separated
Senior Notes remarketed, if such holder delivers (a) to the Trustee and the
Collateral Agent a notice of that election, by use of a notice in substantially
the form of Exhibit B to the Officers' Certificate, specifying the aggregate
principal amount of Senior Notes to be remarketed, and (b) such Separated Senior
Notes, by book-entry transfer or other appropriate procedures, to the Collateral
Agent for Remarketing, in each case, by 5:00 p.m. (New York City time) on the
Election Date. Once the holder of such Separated Senior Notes delivers such
notice and Separated Senior Notes as specified in the preceding sentence, such
election may not be withdrawn and may not be conditioned upon the level at which
the Reset Rate is established in the Remarketing; PROVIDED, HOWEVER, that if
such a holder delivers only such a notice but not the Separated Senior Notes
subject to the notice, or vice versa, then none of such holder's Separated
Senior Notes shall be included in the Remarketing. On the Business Day
immediately preceding the Initial Remarketing Date, the Collateral Agent shall
notify the Remarketing Agent of the aggregate number of Separated Senior Notes
to be remarketed. If there is a Successful Remarketing, the Collateral Agent
shall transfer such Separated Senior Notes in accordance with the instructions
provided by the Remarketing Agent pursuant to the Remarketing Agreement. If a
Failed Remarketing occurs, the Collateral Agent shall Transfer such Separated
Senior Notes to the holders by the end of the Business Day following the Failed
Remarketing.

       (ii) REMARKETING AND RATE RESET PROCEDURES. (A) On the seventh Business
Day prior to the Initial Remarketing Date or the Final Remarketing Date, as
applicable, the Company shall give notice of the Remarketing in an Authorized
Newspaper, including the specific U.S. Treasury Security or Treasury Securities
(including the CUSIP number and/or the principal terms of such Treasury Security
or Treasury Securities) that must be delivered by Holders of Corporate PIES that
elect not to participate in the Remarketing pursuant to Section 5.3(e) of the
Purchase Contract Agreement, no later than 5:00 p.m. (New York City time) on the
Election Date. Promptly after 11:00 a.m. (New York City time) on the Business
Day preceding the Initial Remarketing Date, or the Final Remarketing Date, as
applicable, the Purchase Contract Agent shall notify the Remarketing Agent, the
Company, the Collateral Agent and the Trustee of the aggregate principal amount
of Pledged Senior Notes to be remarketed and the Collateral Agent, having
separately notified the Remarketing Agent, the Trustee and the Company of the
aggregate principal amount of Separated Senior Notes to be included in the
Remarketing by 11:00 a.m. (New York City time), on the Business Day immediately
preceding the Initial Remarketing Date

                                        8

<Page>

                                                                             A-9

or the Final Remarketing Date, as applicable, shall concurrently therewith,
pursuant to the Pledge Agreement, deliver for Remarketing to the Remarketing
Agent all Remarketing Senior Notes.

       (B) The Remarketing Agent shall use its commercially reasonable efforts
to remarket the Remarketing Senior Notes pursuant to the Remarketing Agreement.
If there is a Successful Remarketing, by approximately 4:30 p.m. (New York City
time) on the Remarketing Date, the Remarketing Agent shall advise, by telephone,
the Trustee and the other parties specified in the Purchase Contract Agreement,
of the Reset Rate determined in the Remarketing and the number of Remarketing
Senior Notes remarketed in the Remarketing.

       Upon receipt of the proceeds from a Successful Remarketing, the
Remarketing Agent shall among other actions specified by the Remarketing
Agreement:

       (I)     deduct and retain an amount equal to .25% of the proceeds of the
               principal amount of the Remarketing Senior Notes for the
               performance of its services as Remarketing Agent;

       (II)    if the Successful Remarketing occurs prior to the third Business
               Day preceding the Purchase Contract Settlement Date, use the
               remaining proceeds with respect to the Pledged Senior Notes from
               such Successful Remarketing to purchase the Treasury Portfolio,
               in open market transactions and/or at Treasury auctions, in the
               amount and types of Treasury securities describe in clauses
               (1)(i) and (2)(ii) of the definition of Remarketing Value related
               to the Pledged Senior Notes, and, on or prior to the third
               Business Day following the Remarketing Date (such date of
               settlement of the Remarketing, the "Remarketing Settlement Date")
               deliver such Treasury Portfolio to the Collateral Agent, or (II)
               if such Successful Remarketing occurs on the Final Remarketing
               Date, remit to the Collateral Agent the portion of the remaining
               proceeds with respect to the Pledged Senior Notes from such
               Successful Remarketing to be delivered to the Purchase Contract
               Agent in settlement of the Purchase Contracts;

       (III)   if any Separated Senior Notes were included in such successful
               Remarketing, remit to the Collateral Agent the remaining portion
               of the proceeds from the Successful Remarketing of such Separated
               Senior Notes in an amount described in clauses (1)(ii) and
               (2)(ii) of the definition of Remarketing Value for payment by the
               Collateral Agent to the holders of such Separated Senior Notes;
               and

       (IV)    remit any remaining balance of such proceeds after the
               application of such proceeds as set forth in clauses (I) through
               (III) above, if any, to the Purchase Contract Agent for the
               benefit of the Holders of the remarketed Pledged Senior Notes and
               to the Collateral

                                       9

<Page>

                                                                            A-10

               Agent for the for the holders of any remarketed Separated Senior
               Notes on a pro rata basis;

PROVIDED, HOWEVER, that if such Successful Remarketing is consummated after 4:30
p.m. (New York City time) on such Remarketing Date and, despite using its
commercially reasonable efforts, the Remarketing Agent cannot cause the
applications of the proceeds specified above to occur on such Remarketing Date,
then the Remarketing Agent may make such applications and remittances on the
next succeeding Business Day.

       Any distributions to Holders of funds described in paragraphs (I) through
(IV) above shall be payable at the office of the Purchase Contract Agent in The
City of New York maintained for that purpose or, at the option of the Holder or
the holder of Separated Senior Notes, as applicable, by check mailed to the
address of the Person entitled thereto at such address as it appears on the
Register or by wire transfer to an account specified by the Holder or the holder
of Separated Senior Notes, as applicable.

       (C) If a Failed Remarketing occurs:

       (I)     The Remarketing Agent shall notify by telephone by 4:00 p.m. (New
               York City time) on the Final Remarketing Date the Depositary, the
               Trustee, the Purchase Contract Agent, the Collateral Agent and
               the Company that a Failed Remarketing has occurred.

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

       (III)   By the third Business Day following the Failed Remarketing, the
               Remarketing Agent shall remit (A) to the Collateral Agent the
               Remarketing Senior Notes that were formerly components of the
               Corporate PIES and (B) to the Collateral Agent the Separated
               Senior Notes, whereupon the Collateral Agent shall transfer such
               Separated Senior Notes to the related Holders thereof.

       (IV)    The Remarketing Agent shall determine the Reset Rate that will be
               equal to the Two Year Benchmark Treasury in effect on the
               Purchase Contract Settlement Date plus the Applicable Spread.

       (V)     The Collateral Agent, under the Pledge Agreement and for the
               benefit of the Company, may, on the written direction of the
               Company, exercise its rights as a secured party with respect to
               such Pledged Senior Notes, including those actions specified
               below; PROVIDED that, if upon a Failed Remarketing, the
               Collateral Agent exercises such rights for the benefit of the
               Company with respect to such Pledged Senior Notes, any
               accumulated and unpaid interest on such Senior Notes will become
               payable by the Company to the Purchase Contract Agent for payment
               to

                                       10

<Page>

                                                                            A-11

               the Holders of the Corporate PIES to which such Senior Notes
               relates. Such payment will be made by the Company on or prior to
               11:00 a.m. (New York City time), on 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 Purchase Contract
               Agent.

       With respect to any Pledged Senior Notes which are subject of a Failed
Remarketing, 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, may, on the written directions of the Company, (i) retain such Senior Notes
in full satisfaction of the Holders' obligations under the related Purchase
Contracts or (ii) sell such Senior Notes in one or more public or private sales.

       (D) If all of the holders of Corporate PIES elect not to participate in
the Remarketing and no holders of Senior Notes that are not a component of
Corporate PIES elect to participate in the Remarketing and deliver their Senior
Notes and a notice of such election to the Collateral Agent, pursuant to and in
accordance with the Pledge Agreement then, (i) the Remarketing Agent shall, in
its sole discretion, determine the rate that, in its judgment, would have been
established had a Remarketing been held on the Remarketing Date, and such rate
shall be the Reset Rate; and (ii) by approximately 4:30 p.m. (New York City
time), on the third Business Day preceding the Purchase Contract Settlement
Date, the Remarketing Agent shall advise by telephone (promptly confirmed in
writing), the Trustee and the Company of such Reset Rate, whereupon the Company
shall notify the Depositary in writing of such Reset Rate.

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

       (iii) DEPOSITARY'S PROCEDURES, ETC.

       So long as the Corporate PIES, Treasury PIES or the Senior Notes are
evidenced by one or more Global Senior Notes deposited with the Depositary or
its nominee in writing of such Reset Rate, the Company shall request, not later
than 15 calendar days nor more than 30 Business Days prior to the Remarketing
Date, that the Depositary notify, directly or indirectly, each beneficial owner
of a Corporate PIES and of a Separated Senior Note of the impending Remarketing.

         In accordance with the Depositary's normal procedures, on the
Remarketing Settlement Date or the Purchase Contract Settlement Date, as
applicable, the transactions described above with respect to each Senior Note
tendered for purchase and sold in the Remarketing shall be executed through the
Depositary, and the accounts of the respective Depositary Participants shall be
debited and credited and such Senior Notes delivered by book entry as necessary
to effect purchases and sales of such Senior Notes. The Depositary shall make
payment in accordance with its normal procedure; PROVIDED that, the procedures
set forth herein, including provisions for payment by purchasers of the Senior
Notes in the Remarketing, shall be subject to modification to the extent
required by the Depositary or if the book-entry system is no longer available
for the Senior Notes at the time of the Remarketing, to facilitate the tendering
and remarketing of the Senior Notes in certificated form, and shall provide for
the authentication and delivery of Senior

                                       11

<Page>

                                                                            A-12

Notes in a principal amount equal to the unremarketed portion of such Senior
Notes. In addition, the Remarketing Agent may modify, the settlement procedures
set forth herein in order to facilitate the settlement process.

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

       (iv) OTHER MATTERS REGARDING REMARKETING.

       (A) The Remarketing Agent may purchase Remarketing Senior Notes for its
own account. However, under no circumstances, shall the Remarketing Agent be
obligated to purchase any Senior Notes in connection with a Remarketing and
neither the Company nor the Remarketing Agent shall be obligated to provide or
liable for any payment upon tender of Senior Notes in a Remarketing.

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

       (C) Notwithstanding the Pledge and, if applicable, the delivery of
Separated Senior Notes to the Collateral Agent for Remarketing, in each case, as
set forth herein, the Company's obligation to pay interest, including any
accrued and unpaid interest, on all outstanding Senior Notes (whether then
comprising a part of Corporate PIES or as Separated Senior Notes) pursuant to
the Indenture shall remain unconditional and absolute.

       8. DEFAULT AND REMEDIES.

       If an Event of Default with respect to Senior Notes shall occur and be
continuing, the principal of the Senior Notes may be declared due and payable in
the manner and with the effect and consequent remedies to the Holders, in each
case, as provided in the Indenture.

       No Holder of any Senior Note shall have any right by virtue or by
availing of any provision of the Indenture to institute any action or proceeding
at law or in equity or in bankruptcy or otherwise upon or under or with respect
to the Indenture, or for the appointment of a trustee, receiver, liquidator,
custodian or other similar official or for any other remedy hereunder, unless
such Holder previously shall have given to the Trustee written notice of a
Continuing Event of Default and unless the Holders of not less than 25% in
aggregate principal amount of the Senior Notes then Outstanding shall have made
written request upon the Trustee to institute such action or proceedings in its
own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby and the Trustee for 60 days after
its receipt of

                                       12

<Page>

                                                                            A-13

such notice, request and offer of indemnity shall have failed to institute any
such action or proceeding and the Holders of a majority in principal amount of
then Outstanding Senior Notes shall have not given the Trustee a direction
inconsistent with such request, it being understood and intended, and being
expressly covenanted by the Holders of every Senior Note with every other Holder
and the Trustee, that no one or more Holders of Senior shall have any right in
any manner whatever by virtue or by availing of any provision of the Indenture
to affect, disturb or prejudice the rights of any other such Holder of Senior
Notes, or to obtain or seek to obtain priority over or preference to any other
such Holder or to enforce any right under the Indenture, except in the manner
herein provided and for the equal, ratable and common benefit of all Holders of
Senior Notes. For the protection and enforcement of the provisions of the
Indenture, each and every Holder and the Trustee shall be entitled to such
relief as can be given either at law or in equity.

       9. TAX TREATMENT.

       The Company agrees, and by purchasing a beneficial ownership interest in
the Senior Notes each Holder of Senior Notes will be deemed to have agreed, for
United States federal income tax purposes (a) to treat the acquisition of a
Corporate PIES as the acquisition of a unit consisting of a stock purchase
contract and a senior note issued by the Company and to treat the Senior Notes
as indebtedness that is subject to Treas. Reg. Sec. 1.1275-4 (the "Contingent
Payment Regulations") and (b) to be bound by the Company's determination of the
"comparable yield" and "project payment schedule," within the meaning of the
Contingent Payment Regulations, with respect to the Senior Notes. The Company
has determined that the comparable yield is an annual rate of 8.12%, compounded
quarterly. Based on the comparable yield, the projected payment schedule per
senior note is $0.9802 for the period ending on February 15, 2002, $0.9913 for
each subsequent quarter ending on or prior to the initial remarketing date and
$1.0663 for each quarter ending after the initial remarketing date (which does
not include the payment of principal at maturity).

       10. AMENDMENT; SUPPLEMENTS; AND WAIVERS.

       The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders at any time by the Company and the Trustee
with the consent of the Holders of a majority in principal amount of the Senior
Notes then Outstanding. The Indenture also contains provisions permitting the
Holders of a majority in aggregate principal amount of the Senior Notes
Outstanding, on behalf of the Holders of all Senior Notes, to waive certain past
defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Senior Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Senior Note and of any Senior Note
issued upon the registration of transfer hereof or in exchange therefor or in
lieu hereof, whether or not notation of such consent or waiver is made upon this
Senior Note.

       11. OBLIGATION ABSOLUTE AND UNCONDITIONAL.

       No reference herein to the Indenture and no provision of this Senior Note
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and

                                       13

<Page>

                                                                            A-14

unconditional, to pay the principal of, premium, if any, and interest on this
Senior Note at the times, place and rate, and in the coin or currency, herein
prescribed.

       12. SEVERABILITY.

       If any provision in this Senior Note is unenforceable in any
jurisdiction, then to the fullest extent permitted bylaw, (i) the other
provisions of this Senior Note shall remain in full force and effect in such
jurisdiction and shall be liberally 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 of this Senior Note in any
jurisdiction shall not in any way affect the validity or enforceability of such
provision any other jurisdiction.

       13. GOVERNING LAW.

       THIS SENIOR NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

       14. JURISDICTION; VENUE.

       The Company submits 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 Senior Note or the transactions contemplated hereby.
The parties hereto 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.

       15. COPIES OF THE INDENTURE.

       The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture. Requests may be made to:

               Sierra Pacific Resources
               6100 Neil Road
               Reno, Nevada  89520-3150
               Attention:  Treasurer

                                       14

<PAGE>

                                  ABBREVIATIONS

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

TEN COM -               as tenants in common

TEN ENT -               as tenants by the entireties

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

UNIF GIFT MIN ACT -     ____________________ Custodian for _____________________
                            (CUSTODIAN)                            (MINOR)

                        Under Uniform Gifts to Minors Act of

                        -------------------------------
                                   (STATE)

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

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

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

--------------------------------------------------------------------------------
                            (INSERT NAME OF ASSIGNEE)

--------------------------------------------------------------------------------
 (INSERT SOCIAL SECURITY, TAXPAYER I.D. OR OTHER IDENTIFYING NUMBER OF ASSIGNEE)

--------------------------------------------------------------------------------
                          (INSERT ADDRESS OF ASSIGNEE)

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

--------------------------------------------------------------------------------
agent to transfer said Senior Note on the books of Sierra Pacific Resources,
with full power of substitution in the premises.

Dated: _______________ __, _____
                                    --------------------------------------
                                    Signature

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

<Page>

                                    Signature Guarantee:
                                                        ------------------------

NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS
WRITTEN UPON THE FACE OF THE WITHIN INSTRUMENT IN EVERY PARTICULAR WITHOUT
ALTERATION OR ENLARGEMENT, OR ANY CHANGE WHATEVER.

<PAGE>

                     [TO BE ATTACHED TO GLOBAL CERTIFICATES]

                       SCHEDULE OF INCREASES OR DECREASES

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

<Table>
<Caption>
-----------------------------------------------------------------------------------------------------------------------------
                                                                                PRINCIPAL AMOUNT OF
                           AMOUNT OF DECREASE       AMOUNT OF INCREASE IN          SENIOR NOTES
                           IN PRINCIPAL AMOUNT       PRINCIPAL AMOUNT OF         EVIDENCED BY THE            SIGNATURE OF
                             OF SENIOR NOTES             SENIOR NOTES           GLOBAL SENIOR NOTE        AUTHORIZED OFFICER
                            EVIDENCED BY THE           EVIDENCED BY THE           FOLLOWING SUCH             OF TRUSTEE OR
          DATE             GLOBAL SENIOR NOTE         GLOBAL SENIOR NOTE       DECREASE OR INCREASE        COLLATERAL AGENT
-----------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                      <C>                        <C>                        <C>
-----------------------------------------------------------------------------------------------------------------------------

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</Table>

<PAGE>

                                                                       EXHIBIT B

                     NOTICE TO TRUSTEE AND COLLATERAL AGENT
                         REGARDING OPTIONAL REMARKETING

Wells Fargo Bank Minnesota, N.A., as Collateral Agent
Corporate Trust
Sixth and Marquette
MAC N9303-120
Attention:  Jane Schweiger
Facsimile:  (612) 667-9825

The Bank of New York, as Indenture Trustee
Corporate Trust Division
5 Penn Plaza--13th Floor
New York, NY 10001-1810
Attention:  Stacey B. Poindexter
Facsimile (212) 896-7299

       Re:  SENIOR NOTES OF SIERRA PACIFIC RESOURCES

       Reference is made to Indenture dated as of May 1, 2000 (the "Indenture"),
between Sierra Pacific Resources (the "Company") and The Bank of New York, as
trustee (the "Trustee"). Capitalized terms used herein but not defined shall
have the meanings set forth in the Indenture.

       The undersigned hereby notifies you in accordance with paragraph 19(i)(A)
of the Officers' Certificate and Section 5.7 of the Pledge Agreement that the
undersigned Holder elects to have $____________ aggregate principal amount of
Senior Notes included in the Remarketing and will deliver such Senior Notes to
_______ for that purpose. 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 Senior 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 a
unsuccessful Remarketing, upon receipt of the Senior Notes tendered herewith
from the Remarketing Agent, to deliver the Senior Notes to the person(s) and at
the address(es) indicated herein under "B. Delivery Instructions." The
undersigned acknowledges and agrees that the Collateral Agent and the
Remarketing Agent may withhold from the Proceeds such amounts as they may
determine to be appropriate in respect of taxes which may be applicable.

       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

<Page>

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 the Indenture, the
Remarketing Agreement and the Pledge Agreement.

Please print name and address of Holder:

------------------------------------
       Name

------------------------------------
Social Security or other Taxpayer
Identification Number, if any

------------------------------------
       Address

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

       (A) Payment Instructions

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

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

       (B) Delivery Instructions

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

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

<Page>

                                                                       EXHIBIT C

                    INSTRUCTION FROM PURCHASE CONTRACT AGENT
                               TO COLLATERAL AGENT

Wells Fargo Bank Minnesota, N.A., as Collateral Agent
Corporate Trust
Sixth and Marquette
MAC N9303-120
Attention:  Jane Schweiger
Facsimile:  (612) 667-9825

       Re: SENIOR NOTES OF SIERRA PACIFIC RESOURCES

       Reference is made to the Pledge Agreement, dated as of November __, 2001
(the "Pledge Agreement"), among Sierra Pacific Resources (the "Company"), [you,
as Collateral Agent and Securities Intermediary,] and the undersigned, as
Purchase Contract Agent and as attorney-in-fact for the holders of PIES from
time to time. Capitalized terms used herein but not defined shall have the
meaning set forth in the Pledge Agreement.

       The undersigned hereby notifies you in accordance with Section 5.8 of the
Pledge Agreement, that the undersigned has received notice from the Holder named
below (the "Holder") that the Holder has elected not to participate in the
Remarketing, as permitted under Section 5.3(e) of the Purchase Contract
Agreement through the compliance with the procedures for creating Treasury PIES
set forth in Section 3.13 of the Purchase Contract Agreement on or prior to
10:00 a.m. (New York City time), on the Election Date.

       Accordingly, the undersigned hereby notifies you in accordance with
Section 3.13 of the Purchase Contract Agreement and Section 5.2 of the Pledge
Agreement that the Holder has elected to substitute $______________ Value of
Treasury Securities in exchange for an equal Value of Pledged Senior Notes and
has delivered to the undersigned a notice stating that the Holder has
Transferred such Treasury Securities to the Securities Intermediary, for credit
to the Collateral Account.

       The undersigned hereby requests that you as the Collateral Agent, upon
confirmation from the Securities Intermediary that such Treasury Securities have
been credited to the Collateral Account, release to us for delivery to such
Holder _________ principal amount of the Pledged Senior Note in accordance with
Section 5.2 of the Pledge Agreement.

                                         The Bank of New York,
                                         as Purchase Contract Agent

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

                                         Date:
                                              ---------------------------------

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