Document:

EX-4(k)

                      AMERICAN ELECTRIC POWER COMPANY, INC.

                                       AND

                                       [ ]

                       AS FORWARD PURCHASE CONTRACT AGENT

                       FORWARD PURCHASE CONTRACT AGREEMENT

                            DATED AS OF JUNE __, 2002

<PAGE>

                                TABLE OF CONTENTS
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                                                                                                     PAGE
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 ARTICLE I. DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION.....................................1
         Section 1.1       Definitions..................................................................1
         Section 1.2       Compliance Certificates and Opinions........................................13
         Section 1.3       Form of Documents Delivered to Agent........................................14
         Section 1.4       Acts of Holders; Record Dates...............................................14
         Section 1.5       Notices.....................................................................15
         Section 1.6       Notice to Holders; Waiver...................................................16
         Section 1.7       Effect of Headings and Table of Contents....................................17
         Section 1.8       Successors and Assigns......................................................17
         Section 1.9       Separability Clause.........................................................17
         Section 1.10      Benefits of Agreement.......................................................17
         Section 1.11      Governing Law...............................................................17
         Section 1.12      Legal Holidays..............................................................17
         Section 1.13      Counterparts................................................................18
         Section 1.14      Inspection of Agreement.....................................................18

 ARTICLE II. CERTIFICATE FORMS.........................................................................18
         Section 2.1       Forms of Certificates Generally.............................................18
         Section 2.2       Form of Agent's Certificate of Authentication...............................19

 ARTICLE III. THE EQUITY UNITS.........................................................................19
         Section 3.1       Title and Terms; Denominations..............................................19
         Section 3.2       Rights and Obligations Evidenced by the Certificates........................20
         Section 3.3       Execution, Authentication, Delivery and Dating..............................21
         Section 3.4       Temporary Certificates......................................................21
         Section 3.5       Registration; Registration of Transfer and Exchange.........................22
         Section 3.6       Book-Entry Interests........................................................23
         Section 3.7       Notices To Holders..........................................................24
         Section 3.8       Appointment of Successor Clearing Agency....................................24
         Section 3.9       Definitive Certificates.....................................................24
         Section 3.10      Mutilated, Destroyed, Lost and Stolen Certificates..........................25
         Section 3.11      Persons Deemed Owners.......................................................26
         Section 3.12      Cancellation................................................................26
         Section 3.13      Establishment of Stripped Equity Units......................................27
         Section 3.14      Reestablishment of Equity Units.............................................28
         Section 3.15      Transfer of Collateral Upon Occurrence of Termination Event.................30
         Section 3.16      No Consent to Assumption....................................................31

 ARTICLE IV. THE NOTES.................................................................................31
         Section 4.1       Payment of Interest; Rights to Interest Payments Preserved; Notice..........31
         Section 4.2       Notice and Voting...........................................................32
         Section 4.3       Tax Event Redemption........................................................32
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                                        i
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                               TABLE OF CONTENTS
                                   (continued)
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 ARTICLE V. THE FORWARD PURCHASE CONTRACTS; THE REMARKETING............................................33
         Section 5.1       Purchase of Shares of Common Stock..........................................33
         Section 5.2       Payment of Purchase Price; Remarketing......................................35
         Section 5.3       Issuance of Shares of Common Stock..........................................42
         Section 5.4       Contract Adjustment Payments..................................................
         Section 5.5       Deferral of Contract Adjustment Payments......................................
         Section 5.6       Adjustment of Settlement Rate...............................................43
         Section 5.7       Notice of Adjustments and Certain Other Events..............................49
         Section 5.8       Termination Event; Notice...................................................50
         Section 5.9       Early Settlement............................................................50
         Section 5.10      Early Settlement Upon Merger................................................52
         Section 5.11      Charges and Taxes...........................................................54
         Section 5.12      No Fractional Shares........................................................54
         Section 5.13      Tax Treatment...............................................................55

 ARTICLE VI. REMEDIES..................................................................................55
         Section 6.1       Unconditional Right of Holders to Purchase Common Stock.....................55
         Section 6.2       Restoration of Rights and Remedies..........................................55
         Section 6.3       Rights and Remedies Cumulative..............................................55
         Section 6.4       Delay or Omission Not Waiver................................................56
         Section 6.5       Undertaking For Costs.......................................................56
         Section 6.6       Waiver of Stay or Extension Laws............................................56

 ARTICLE VII. THE AGENT................................................................................56
         Section 7.1       Certain Duties, Rights and Immunities.......................................56
         Section 7.2       Notice of Default...........................................................59
         Section 7.3       Certain Rights of Agent.....................................................59
         Section 7.4       Not Responsible For Recitals, Etc...........................................60
         Section 7.5       May Hold Equity Units and Stripped Equity Units and Other Dealings..........60
         Section 7.6       Money Held In Custody.......................................................60
         Section 7.7       Compensation and Reimbursement..............................................60
         Section 7.8       Corporate Agent Required; Eligibility.......................................61
         Section 7.9       Resignation and Removal; Appointment of Successor...........................62
         Section 7.10      Acceptance of Appointment By Successor......................................63
         Section 7.11      Merger, Conversion, Consolidation or Succession to Business.................63
         Section 7.12      Preservation of Information; Communications to Holders......................64
         Section 7.13      Failure to Act..............................................................64
         Section 7.14      No Obligations of Agent.....................................................64
         Section 7.15      Tax Compliance..............................................................65

 ARTICLE VIII. SUPPLEMENTAL AGREEMENTS.................................................................65
         Section 8.1       Supplemental Agreements Without Consent of Holders..........................65
         Section 8.2       Supplemental Agreements With Consent of Holders.............................66
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                               TABLE OF CONTENTS
                                   (continued)
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         Section 8.3       Execution of Supplemental Agreements........................................67
         Section 8.4       Effect of Supplemental Agreements...........................................67
         Section 8.5       Reference to Supplemental Agreements........................................67

 ARTICLE IX. CONSOLIDATION, MERGER, SALE OR CONVEYANCE.................................................68
         Section 9.1       Company May Consolidate, Etc., Only on Certain Terms........................68
         Section 9.2       Successor Substituted.......................................................68

 ARTICLE X. COVENANTS..................................................................................69
         Section 10.1      Performance Under Purchase Contracts........................................69
         Section 10.2      Maintenance of Office or Agency.............................................69
         Section 10.3      Company to Reserve Common Stock.............................................70
         Section 10.4      Covenants as to Common Stock................................................70
         Section 10.5      Statements of Officer of the Company as to Default..........................70
         Section 10.6      ERISA.......................................................................70

EXHIBITS

Exhibit A.........Form of Equity Units Certificate
Exhibit B.........Form of Stripped Equity Units Certificate
Exhibit C.........Instruction from Forward Purchase Contract Agent to Collateral Agent
Exhibit D.........Instruction to Forward Purchase Contract Agent
Exhibit E.........Notice to Settle by Separate Cash
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                                      iii
<PAGE>

         FORWARD PURCHASE CONTRACT AGREEMENT, dated as of June __, 2002, between
American Electric Power Company,  Inc., a Delaware  corporation (the "Company"),
and [ ], a [ ]  company,  acting  as  Forward  Purchase  Contract  Agent for the
Holders  of  Equity  Units  and  Stripped  Equity  Units  from time to time (the
"Agent").

                                    RECITALS

         The Company has duly  authorized  the  execution  and  delivery of this
Agreement and the  Certificates  evidencing the Equity Units and Stripped Equity
Units.

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

         For and in consideration of the premises and the purchase of the Equity
Units by the  Holders  thereof,  the  Company  and the Agent  mutually  agree as
follows:

                                   ARTICLE I.
                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

         Section 1.1     DEFINITIONS.

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

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

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

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

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

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

         "Affiliate"  has the same  meaning  as  given to that  term in Rule 405
under the Securities Act or any successor rule thereunder.

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

 <PAGE>

         "Agent-purchased  Treasury  Consideration" has the meaning specified in
Section 5.4(d).

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

         "Applicable Market Value" has the meaning specified in Section 5.1(c).

         "Applicable  Ownership  Interest" means, with respect to an Equity Unit
and the Treasury  Securities  in the Treasury  Portfolio,  (A) a 1/20,  or 5.0%,
undivided beneficial ownership interest in a $1,000 principal or interest amount
of a principal or interest strip in a U.S.  Treasury  security  included in such
Treasury  Portfolio  which  matures  on or  prior  to [ ],  2005 and (B) for the
scheduled  interest  Payment Date on the Notes that occurs on the Stock Purchase
Date, in the case of a successful  remarketing,  or for each scheduled  interest
Payment Date on the Notes that occurs after the Tax Event Redemption Date and on
or before the Stock Purchase Date, in the case of a Tax Event Redemption, a 5.0%
undivided beneficial ownership interest in a $1,000 principal or interest amount
of a principal or interest  strip in a U.S.  Treasury  security  included in the
Treasury  Portfolio  that matures on or prior to that  interest  Payment Date or
Dates.

         "Applicants" has the meaning specified in Section 7.12(b).

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

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

         "Board of Directors" means either the Board of Directors of the Company
or the  committee  of  executive  officers  appointed by such Board or any other
committee of such Board duly  authorized to act  generally or in any  particular
respect for such Board hereunder.

         "Board  Resolution"  means (i) a copy of a resolution  certified by the
Secretary or an Assistant  Secretary of the Company to have been duly adopted by
the Board of  Directors  and to be in full  force and effect on the date of such
certification,  (ii) a copy of a  unanimous  written  consent  of the  Board  of
Directors or (iii) a certificate signed by the authorized officer or officers to
whom the Board of  Directors  has  delegated  its  authority,  and in each case,
delivered to the Agent.

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

         "Business Day" means any day other than a Saturday, Sunday or any other
day on which banking  institutions  and trust companies in the State of New York
or at a place of payment  are  authorized  or  required  by law,  regulation  or
executive order to be closed.

                                      -2-
<PAGE>

         "Capital  Stock"  means  any  and  all  shares,  interests,  rights  to
purchase, warrants, options, participations or other equivalents of or interests
in (however designated, whether voting or non-voting) corporate stock or similar
interests in other types of entities.

         "Cash Merger" has the meaning specified in Section 5.10(a).

         "Cash Settlement" has the meaning specified in Section 5.4(a).

         "Certificate"  means an Equity Units  Certificate or a Stripped  Equity
Units Certificate.

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

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

         "Closing Price" has the meaning specified in Section 5.1(c).

         "Code" means Internal  Revenue Code of 1986, as amended,  and the rules
and regulations promulgated thereunder.

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

         "Collateral  Agent"  means [ ], as  Collateral  Agent  under the Pledge
Agreement until a successor  Collateral Agent shall have become such pursuant to
the applicable  provisions of the Pledge Agreement,  and thereafter  "Collateral
Agent" shall mean the Person who is then the Collateral Agent thereunder.

         "Collateral Substitution" has the meaning specified in Section 3.13(a).

         "Common  Stock" means the common stock,  par value $6.50 per share,  of
the Company.

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

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

          "Contract  Adjustment Payments" means, in the case of Equity Units and
Stripped  Equity  Units,  the amount  payable by the  Company in respect of each
Forward Purchase  Contract  constituting a part of such Equity Units or Stripped
Equity Units, equal to [ ]% per year of the Stated Amount, in each case computed
on the  basis of a 360-day  year of  twelve  30-day  months,  plus any  Deferred
Contract Adjustment Payments accrued pursuant to Section 5.3.

                                      -3-
<PAGE>

          "Corporate  Trust Office"  means the office of the Agent at which,  at
any  particular   time,  its  corporate  trust  business  shall  be  principally
administered,  which  office at the date  hereof is located  at [ ],  Attention:
Corporate Trust Department.

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

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

         "Custodial  Agent"  means [ ], as  Custodial  Agent  under  the  Pledge
Agreement  until a successor  Custodial Agent shall have become such pursuant to
the applicable  provisions of the Pledge  Agreement,  and thereafter  "Custodial
Agent" shall mean the Person who is then the Custodial Agent thereunder.

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

         "Depositary"  means,  initially,  DTC,  until another  Clearing  Agency
becomes its successor, and thereafter "Depositary" shall mean such successor.

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

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

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

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

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

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

         "Equity Units  Certificate"  means a certificate  evidencing the rights
and  obligations of a Holder in respect of the number of Equity Units  specified
on such certificate, substantially in the form of Exhibit A hereto.

         "Equity  Units   Register"  and  "Equity  Units   Registrar"  have  the
respective meanings specified in Section 3.5(a).

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

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

         "Expiration Date" has the meaning specified in Section 1.4(f).

                                      -4-
<PAGE>

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

         "Failed Remarketing" has the meaning specified in Section 5.4(e).

         "Fair  Market  Value"  with  respect  to  securities  distributed  in a
Spin-Off  means (a) in the case of any Spin-Off that is effected  simultaneously
with an Initial Public Offering of such securities,  the Initial Public Offering
price  of  those  securities,  and (b) in the case of any  other  Spin-Off,  the
average of the Sale Prices of those  securities  over the first 10 Trading  Days
after the effective date of such Spin-Off.

         "Forward  Purchase  Contract,"  when used with  respect  to any  Equity
Units,  means the contract forming a part of such Equity Unit and obligating the
Company to sell and the Holder of such Equity Unit to purchase  Common  Stock on
the terms and subject to the conditions set forth in Article Five.

         "Forward Purchase  Contract  Settlement Fund" has the meaning specified
in Section 5.5.

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

         "Holder"  means the  Person in whose  name the  Units  evidenced  by an
Equity Units Certificate or a Stripped Equity Units Certificate is registered in
the Equity Units Register or the Stripped Equity Units Register, as the case may
be.

         "Indenture" means the Indenture,  dated as of May 1, 2001,  between the
Company  and  the  Trustee  as  supplemented  by any  officers'  certificate  or
supplemental indenture.

          "Initial  Public  Offering,"  with respect to any Spin-Off,  means the
first  time  securities  of the  same  class  or  type as the  securities  being
distributed in the Spin-Off are bone fide offered to the public for cash.

         "Issuer  Order" or "Issuer  Request"  means a written  order or request
signed in the name of the  Company  by the Chief  Executive  Officer,  the Chief
Financial  Officer,  the  President,  any  Vice-President,  the  Treasurer,  any
Assistant Treasurer,  the Secretary or any Assistant Secretary (or other officer
performing similar functions) of the Company and delivered to the Agent.

         "Last  Failed   Remarketing"  has  the  meaning  specified  in  Section
5.4(B)(II).

         "Merger Early Settlement" has the meaning specified in Section 5.10.

         "Merger Early Settlement  Amount" has the meaning  specified in Section
5.10.

         "Merger  Early  Settlement  Date" has the meaning  specified in Section
5.10.

         "Non-electing Share" has the meaning specified in Section 5.6(b).

         "Notes"  means the  series of senior  debt  securities  of the  Company
designated  the  [ ]%  Senior  Notes  Due [ ],  2007,  to be  issued  under  the
Indenture.

                                      -5-
<PAGE>

         "NYSE" has the meaning specified in Section 5.1(c).

         "Office  of the  Agent in The City of New York"  means an office  where
Certificates may be presented or surrendered for acquisition of shares of Common
Stock,  transfer or exchange,  Notes may be presented for payment or surrendered
for transfer or exchange,  and where  notices and demands to or upon the Company
in respect of Units may be served,  such office being located  initially at [ ],
Attention: Corporation Trust Operations.

         "Officer's  Certificate"  means  a  certificate  signed  by  the  Chief
Executive   Officer,   the  Chief   Financial   Officer,   the  President,   any
Vice-President,  the Treasurer,  any Assistant  Treasurer,  the Secretary or any
Assistant  Secretary  (or other  officer  performing  similar  functions) of the
Company and delivered to the Agent.

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

         "Opt-out Treasury  Consideration"  has the meaning specified in Section
5.4(g).

         "Outstanding Units" means, as of the date of determination,  all Equity
Units  or  Stripped   Equity  Units   evidenced  by   Certificates   theretofore
authenticated, executed and delivered under this Agreement, except:

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

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

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

provided, that in determining whether the Holders of the requisite number of the
Equity  Units  or  Stripped  Equity  Units  have  given  any  request,   demand,
authorization,  direction,  notice, consent or waiver hereunder, Equity Units or
Stripped Equity Units owned by the Company or any Affiliate of the Company shall
be  disregarded  and deemed not to be  outstanding,  except that, in determining
whether the Agent shall be protected in relying upon any such  request,  demand,
authorization,  direction,  notice,  consent or  waiver,  only  Equity  Units or
Stripped Equity Units which a Responsible Officer of the Agent actually knows to
be so owned shall be so disregarded. Upper

                                      -6-
<PAGE>

Equity  Units or Stripped  Equity Units so owned which have been pledged in good
faith may be regarded as  Outstanding  Units if the pledgee  establishes  to the
satisfaction  of the Agent the  pledgee's  right so to act with  respect to such
Equity Units or Stripped Equity Units and that the pledgee is not the Company or
any Affiliate of the Company.

         "Payment Date" means each [ ], [ ], [ ] and [ ], commencing [ ], 2002.

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

         "Plan"  means an  employee  benefit  plan that is subject to Title I of
ERISA,  a plan,  individual  retirement  account  or other  arrangement  that is
subject  to Section  4975 of the Code or any  similar  law or any  entity  whose
underlying  assets are  considered  to include  "plan  assets" of any such plan,
account or arrangement.

         "Pledge" means the pledge under the Pledge  Agreement of the Notes, the
Treasury  Securities or the  appropriate  Treasury  Consideration  or Applicable
Ownership Interest in the Treasury  Portfolio,  in each case constituting a part
of the Equity  Units or  Stripped  Equity  Units,  property,  cash,  securities,
financial assets and security entitlements of the Collateral Account (as defined
in  Section  1.1  of  the  Pledge  Agreement)  and  any  proceeds  of any of the
foregoing.

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

         "Pledged  Applicable  Ownership Interest in the Treasury Portfolio" has
the meaning specified in Section 2.1(c) of the Pledge Agreement.

         "Pledged  Notes" has the  meaning  specified  in Section  2.1(c) of the
Pledge Agreement.

         "Pledged Treasury  Consideration"  has the meaning specified in Section
2.1(c) of the Pledge Agreement.

         "Pledged  Treasury  Securities"  has the meaning  specified  in Section
2.1(c) of the Pledge Agreement.

         "Predecessor  Certificate" means a Predecessor Equity Units Certificate
or a Predecessor Stripped Equity Units Certificate.

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

                                      -7-
<PAGE>

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

         "Purchase Price" has the meaning specified in Section 5.1(a).

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

         "Quotation  Agent" means [ ] or its successor or any other primary U.S.
government securities dealer in New York City selected by the Company.

         "Record Date" for the  distribution  payable on any Payment Date means,
as to any Global Certificate, the Business Day next preceding such Payment Date,
and as to any other Certificate, the 15th day preceding such Payment Date.

         "Redemption  Amount"  means,  in the  case  of a Tax  Event  Redemption
occurring  prior to a  successful  remarketing  of the Notes,  for each Note the
product  of (i) the  Stated  Amount  of such  Note  and  (ii) a  fraction  whose
numerator  is  the  applicable  Treasury  Portfolio  Purchase  Price  and  whose
denominator is the aggregate  principal  amount of Notes  outstanding on the Tax
Event Redemption Date, and in the case of a Tax Event Redemption occurring after
the earlier of a successful remarketing of the Notes or the Stock Purchase Date,
for each Note the Stated Amount of the Note.

         "Redemption  Price"  means the  redemption  price per Note equal to the
Redemption Amount.

         "Register"  means the Equity Units  Register  and the  Stripped  Equity
Units Register, as applicable.

         "Registrar"  means the Equity Units  Registrar and the Stripped  Equity
Units Registrar, as applicable.

         "Remarketing  Agent" means [ ] or its successor  under the  Remarketing
Agreement.

         "Remarketing Agreement" means the Remarketing Agreement dated [ ], 2002
by and among the Company, the Remarketing Agent and the Agent.

         "Remarketing Date" means the third Business Day preceding [ ], 2005.

         "Remarketing Fee" has the meaning specified in Section 5.4(b)(i).

                                      -8-
<PAGE>

         "Remarketing  Period" means the three Business Day period  either:  (i)
beginning on the Remarketing Date and ending after the two immediately following
Business  Days;  (ii)  immediately  preceding  [ ], 2005;  or (iii)  immediately
preceding [ ], 2005.

         "Remarketing Value" means

                  (1)  the  value  at the  Remarketing  Date  or any  Subsequent
               Remarketing Date, as the case may be, of U.S. Treasury securities
               that will pay, on or prior to each  Payment  Date  falling on the
               Stock  Purchase  Date,  an amount of cash equal to the  aggregate
               interest  payment that is scheduled to be payable on that Payment
               Date,  on the Notes which are  included  in Equity  Units and are
               participating in the remarketing and (b) the Separate Notes which
               are to be  remarketed  pursuant  to Section  4.5(d) of the Pledge
               Agreement,  assuming for that  purpose that the interest  rate on
               the Notes is equal to the Coupon Rate, and

                  (2)  the  value  at the  Remarketing  Date  or any  Subsequent
               Remarketing Date, as the case may be, of U.S. Treasury securities
               that will pay, on or prior to the Stock  Purchase Date, an amount
               of cash  equal to the Stated  Amount of (a) such Notes  which are
               included in Equity Units and are participating in the remarketing
               and (b) the Separate Notes which are to be remarketed pursuant to
               Section 4.5(d) of the Pledge Agreement

           provided  that  for  purposes  of  clauses  (1)  and (2)  above,  the
           Remarketing Value shall be calculated on the assumptions that (x) the
           U.S. Treasury securities are highly liquid and mature on or within 35
           days prior to the Stock Purchase Date, as determined in good faith by
           the Remarketing Agent in a manner intended to minimize the cash value
           of the U.S. Treasury securities, and (y) the U.S. Treasury securities
           are  valued  based  on  the  ask-side  price  of  the  U.S.  Treasury
           securities at a time between 9:00 a.m. and 11:00 a.m.,  New York City
           time,  selected by the Remarketing  Agent, on the Remarketing Date or
           any Subsequent Remarketing Date, as the case may be, as determined on
           a third-day  settlement  basis by a reasonable  and  customary  means
           selected  in  good  faith  by the  Remarketing  Agent,  plus  accrued
           interest to that date.

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

         "Reset Rate" has the meaning specified in Section 5.4(c).

         "Responsible  Officer" means,  when used with respect to the Agent, any
officer within the corporate trust  department of the Agent (or any successor of
the Agent),  including any  Vice-President,  any assistant  Vice-President,  any
assistant  secretary,  any assistant  treasurer,  any trust officer,  any senior
trust  officer  or any  other  officer  of the Agent  who  customarily  performs
functions  similar to those  performed  by the  Persons who at the time shall be
such officers,  respectively,  or to whom any corporate trust matter is referred
because  of such  Person's  knowledge  of and  familiarity  with the  particular
subject and who, in each of the above  cases,  shall have direct  responsibility
for the administration of this Agreement.

                                      -9-
<PAGE>

         "Sale Price" of the Common  Stock or any  securities  distributed  in a
Spin-Off,  as the case may be, on any Trading  Day means the closing  sale price
per share (or if no closing sale price is  reported,  the average of the bid and
asked prices or, if more than one in either case, the average of the average bid
and the average  asked  prices) on such  Trading  Day as  reported in  composite
transactions  for the  principal  U.S.  securities  exchange on which the Common
Stock or such  securities are traded or, if the Common Stock or such  securities
are not listed on a U.S. national or regional securities  exchange,  as reported
by Nasdaq.

         "Securities Act" means the Securities Act of 1933, as amended,  and the
rules and regulations thereunder.

         "Securities  Intermediary"  means [ ], in its  capacity  as  securities
intermediary  under the Pledge  Agreement,  together with its successors in such
capacity.

         "Separate Notes" has the meaning specified in Section 1.1 of the Pledge
Agreement.

         "Settlement  Date"  means any  Early  Settlement  Date or Merger  Early
Settlement Date or any Stock Purchase Date.

         "Settlement Rate" has the meaning specified in Section 5.1(a).

         "Spin-Off" means a dividend or other  distribution of shares of Capital
Stock of any class or series, or similar equity  interests,  of or relating to a
subsidiary or other business unit of the Company.

         "Stated  Amount"  means,  with respect to any one Note,  Equity Unit or
Stripped Equity Unit, $50.

         "Stock Purchase Date" means the [ ], 2005.

         "Stripped Equity Units" means the collective  rights and obligations of
a holder of a Stripped  Equity Units  Certificate in respect of a 1/20 undivided
beneficial  interest in a Treasury Security,  subject in each case to the Pledge
thereof, and the related Forward Purchase Contract.

         "Stripped Equity Units Certificate" means a certificate  evidencing the
rights and  obligations of a Holder in respect of the number of Stripped  Equity
Units  specified  on such  certificate,  substantially  in the form of Exhibit B
hereto.

         "Stripped  Equity Units Register" and "Stripped Equity Units Registrar"
have the respective meanings specified in Section 3.5(a).

         "Subsequent  Remarketing  Date" means,  provided  there has been one or
more  Failed  Remarketings,   the  date  on  which  the  Remarketing  Agent  has
consummated a successful remarketing in accordance with Section 5.4 hereof, such
date to be no later  than the  Business  Day  immediately  preceding  the  Stock
Purchase Date.

                                      -10-
<PAGE>

         "Supplemental  Indenture" means a supplemental  indenture dated  as  of
[ ], 2002,  between  the Company  and The Bank of New York,  as Trustee,  to the
indenture dated as of May 1, 2001, between the Company and the Trustee.

         "Tax  Event"  means  the  receipt  by  the  Company  of an  opinion  of
nationally recognized independent tax counsel experienced in such matters, which
may be Simpson  Thacher &  Bartlett,  to the  effect  that there is more than an
insubstantial  risk that interest  payable by the Company on the Notes would not
be  deductible,  in whole or in part, by the Company for United  States  federal
income tax purposes,  as a result of (a) any amendment to, or change  (including
any announced  proposed change) in, the laws (or any regulations  thereunder) of
the United States or any political  subdivision or taxing  authority  thereof or
therein  affecting  taxation,  (b) any  amendment  to or change  in an  official
interpretation  or application  of such laws or  regulations by any  legislative
body,  court,  governmental  agency or regulatory  authority or (c) any official
interpretation  or  pronouncement  that  provides for a position with respect to
such laws or regulations that differs from the generally  accepted position on [
], 2002,  which  amendment,  change or  proposed  change is  effective  or which
interpretation or pronouncement is announced on or after [ ], 2002.

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

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

         "Tax  Event  Redemption  Principal  Amount"  means in the case of a Tax
Event Redemption  occurring prior to a successful  remarketing of the Notes, for
each Note the product of the principal  amount of the Note and a fraction  whose
numerator is the Treasury  Portfolio Purchase Price and whose denominator is the
aggregate  Stated Amount of Notes  outstanding on the Tax Event Redemption Date,
and in the case of a Tax Event  Redemption Date occurring after the earlier of a
successful  remarketing  of the Notes or the Stock  Purchase  Date,  the  Stated
Amount of the Notes.

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

         "Termination  Event"  means  the  occurrence  of any  of the  following
events, at any time on or prior to the Stock Purchase Date:

                  (i)   the entry by a court having competent jurisdiction of:

                        (a) a decree  or order  for  relief  in  respect  of the
                  Company  in an  involuntary  proceeding  under any  applicable
                  bankruptcy, insolvency, reorganization or other similar law or
                  a decree or order  adjudging the Company to be  insolvent,  or
                  approving  a  petition  seeking  reorganization,  arrangement,
                  adjustment  or  composition  of the Company and such decree or
                  order shall  remain  unstayed and in effect for a period of 60
                  consecutive days; or

                        (b)  a  final  and  non-appealable  order  appointing  a
                  custodian,  receiver,  liquidator,  assignee, trustee or other
                  similar  official of the

                                      -11-
<PAGE>

                  Company or of  any  substantial part of the  property  of  the
                  Company  ordering the winding up or liquidation of the affairs
                  of the Company; or

                  (ii) the commencement by the Company of a voluntary proceeding
           under any applicable bankruptcy, insolvency,  reorganization or other
           similar law or of a voluntary  proceeding  seeking to be  adjudicated
           insolvent  or the  consent by the Company to the entry of a decree or
           order for relief in an  involuntary  proceeding  under any applicable
           bankruptcy, insolvency, reorganization or other similar law or to the
           commencement of any insolvency proceedings against it, or the filling
           by  the  Company  of  a  petition   or  answer  or  consent   seeking
           organization  or relief under any  applicable  law, or the consent by
           the Company to the filing of such petition or to the  appointment  of
           or taking possession by a custodian, receiver, liquidator,  assignee,
           trustee or similar  official  of the or any  substantial  part of the
           property of the Company or the making by the Company of an assignment
           for the benefit of  creditors,  or the taking of corporate  action by
           the Company or any in furtherance of any such action.

         "Threshold  Appreciation  Price" has the meaning  specified  in Section
5.1(a)(i).

         "TIA" means the Trust Indenture Act of 1939, as amended,  and the rules
and regulations promulgated thereunder.

         "Trading Day" has the meaning specified in Section 5.1(c).

         "Transaction Documents" has the meaning specified in Section 7.1(a).

         "Treasury    Consideration"   means   the   Agent-purchased    Treasury
Consideration or the Opt-out Treasury Consideration.

         "Treasury  Portfolio" means: (i) if a Tax Event Redemption occurs prior
to a successful  remarketing  of the Notes, a portfolio of principal or interest
strips of U.S. Treasury Securities that mature on or prior to the Stock Purchase
Date in an aggregate amount equal to the aggregate principal amount of the Notes
included in the Equity Units on the Tax Event  Redemption Date and, with respect
to each scheduled  interest  Payment Date on the Notes that occurs after the Tax
Event  Redemption  Date and on or before the Stock  Purchase  Date,  interest or
principal  strips of U.S.  Treasury  Securities  that mature on or prior to such
Payment Date in an aggregate amount equal to the aggregate interest payment that
would be due on the aggregate principal amount of the Notes on such Payment Date
if the interest rate of the Notes were not reset on the  applicable  Remarketing
Date,  and (ii)  solely for  purposes  of  determining  the  Treasury  Portfolio
Purchase Price in the case of a Tax Event  Redemption  Date occurring prior to a
successful  remarketing  of the Notes, a portfolio of U.S.  Treasury  Securities
consisting  of principal or interest  strips of U.S.  Treasury  Securities  that
mature on or prior to the Stock  Purchase  Date in an aggregate  amount equal to
the  aggregate  principal  amount  of the  Notes  outstanding  on the Tax  Event
Redemption Date and with respect to each scheduled  interest Payment Date on the
Notes that occurs after the Tax Event Redemption Date and on or before the Stock
Purchase Date,  interest or principal  strips of U.S.  Treasury  Securities that
mature on or prior to such interest Payment Date in an aggregate

                                      -12-
<PAGE>

amount  equal  to  the  aggregate  interest  payment  that  would  be due on the
aggregate  principal amount of the Notes outstanding on the Tax Event Redemption
Date.

         "Treasury  Portfolio  Purchase Price" means the lowest  aggregate price
quoted by a primary U.S.  government  securities  dealer in New York City to the
Quotation  Agent on the third Business Day  immediately  preceding the Tax Event
Redemption Date for the purchase of the Treasury Portfolio for settlement on the
Tax Event Redemption Date.

         "Treasury  Security" means a zero-coupon U.S.  Treasury security (CUSIP
Number ____________) maturing on [ ], 2005 that will pay $1,000 on such maturity
date.

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

         "Underwriting  Agreement" means the Underwriting  Agreement relating to
the Equity Units and Stripped Equity Units dated [ ], 2002 among the Company and
the underwriters named therein.

          "Vice-President"  means any vice-president,  whether or not designated
by a number or a word or words added before or after the title "vice-president."

         Section 1.2 COMPLIANCE CERTIFICATES AND OPINIONS.

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

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

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

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

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

                                      -13-
<PAGE>

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

         Section 1.3       FORM OF DOCUMENTS DELIVERED TO AGENT.

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

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

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

         Section 1.4       ACTS OF HOLDERS; RECORD DATES.

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

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

                  (c) The  ownership  of Equity  Units or Stripped  Equity Units
         shall be proved by the Equity  Units  Register or the  Stripped  Equity
         Units Register, as the case may be.

                                      -14-
<PAGE>

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

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

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

         Section 1.5       NOTICES.

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

                                      -15-
<PAGE>

                  (a)  the  Agent  by any  Holder  or by the  Company  shall  be
         sufficient  for  every  purpose   hereunder  (unless  otherwise  herein
         expressly  provided) if made, given,  furnished or filed in writing and
         personally delivered,  mailed, first-class postage prepaid,  telecopied
         or delivered by overnight air courier  guaranteeing  next day delivery,
         to the Agent at [ ], telecopy number:  [ ], Attention:  Corporate Trust
         Department,  or at any other address  furnished in writing by the Agent
         to the Holders and the Company; or

                  (b)  the  Company  by the  Agent  or by any  Holder  shall  be
         sufficient  for  every  purpose   hereunder  (unless  otherwise  herein
         expressly  provided) if made, given,  furnished or filed in writing and
         personally delivered,  mailed, first-class postage prepaid,  telecopied
         or delivered by overnight air courier  guaranteeing  next day delivery,
         to the Company at American  Electric Power  Company,  Inc., 1 Riverside
         Plaza,  Columbus,  Ohio 43215, telecopy number: [ ], Attention: [ ], or
         at any other address  furnished in writing to the Agent and the Holders
         by the Company; or

                  (c) the  Collateral  Agent by the  Agent,  the  Company or any
         Holder  shall  be  sufficient  for  every  purpose   hereunder  (unless
         otherwise herein expressly provided) if made, given, furnished or filed
         in  writing  and  personally  delivered,  mailed,  first-class  postage
         prepaid,  telecopied or delivered by overnight air courier guaranteeing
         next day delivery,  addressed to the Collateral  Agent at [ ], telecopy
         number:  [ ], Attention:  Corporate Trust  Department,  or at any other
         address  furnished in writing by the Collateral Agent to the Agent, the
         Company and the Holders; or

                  (d) the Trustee by the Company shall be  sufficient  for every
         purpose hereunder (unless otherwise herein expressly provided) if made,
         given, furnished or filed in writing and personally delivered,  mailed,
         first-class  postage prepaid,  telecopied or delivered by overnight air
         courier guaranteeing next day delivery, addressed to the Trustee at The
         Bank of New York, [ ], telecopy number: [ ], Attention: Corporate Trust
         Department, or at any other address furnished in writing by the Trustee
         to the Company.

         Section 1.6       NOTICE TO HOLDERS; WAIVER.

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

                  (b) In  case by  reason  of the  suspension  of  regular  mail
         service or by reason of any other  cause it shall be  impracticable  to
         give such notice by mail, then such  notification as

                                      -16-
<PAGE>

         shall  be made  with the  approval  of the  Agent  shall  constitute  a
         sufficient notification for every purpose hereunder.

         Section 1.7       EFFECT OF HEADINGS AND TABLE OF CONTENTS.

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

         Section 1.8       SUCCESSORS AND ASSIGNS.

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

         Section 1.9       SEPARABILITY CLAUSE.

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

         Section 1.10      BENEFITS OF AGREEMENT.

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

         Section 1.11      GOVERNING LAW.

         This Agreement and the Equity Units and Stripped  Equity Units shall be
governed by and construed in accordance  with the laws of the State of New York,
without regard to its principles of conflicts of laws.

         Section 1.12      LEGAL HOLIDAYS.

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

                                      -17-
<PAGE>

                  (b) If any date on which Contract  Adjustment  Payments are to
         be made on the Forward  Purchase  Contracts is not a Business Day, then
         payment of the Contract  Adjustment  Payments payable on that date will
         be made on the next  succeeding  day which is a  Business  Day,  and no
         interest or  additional  payment  will be paid in respect of the delay.
         However,  if that Business Day is in the next succeeding calendar year,
         the payment will be made on the immediately preceding Business Day with
         the same force and effect as if made on that Payment Date.

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

         Section 1.13      COUNTERPARTS.

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

         Section 1.14      INSPECTION OF AGREEMENT.

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

                                  ARTICLE II.
                                CERTIFICATE FORMS

         Section 2.1       FORMS OF CERTIFICATES GENERALLY.

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

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

                  (c) The Stripped Equity Units Certificates (including the form
         of Forward Purchase Contracts forming part of the Stripped Equity Units
         evidenced  thereby)  shall be in  substantially  the form set  forth in
         Exhibit  B  hereto,  with  such  letters,  numbers  or  other

                                      -18-
<PAGE>

         marks of identification or designation and such legends or endorsements
         printed,  lithographed  or  engraved  thereon as may be required by the
         rules of any  securities  exchange  or  quotation  system  on which the
         Stripped  Equity  Units  may be listed or  quoted  for  trading  or any
         depositary therefor, or as may, consistently herewith, be determined by
         the  officers of the  Company  executing  such  Stripped  Equity  Units
         Certificates,  as evidenced by their  execution of the Stripped  Equity
         Units Certificates.

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

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

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

         Section 2.2       FORM OF AGENT'S CERTIFICATE OF AUTHENTICATION.

                  (a) The form of the Agent's  certificate of  authentication of
         the Equity  Units shall be in  substantially  the form set forth on the
         form of the Equity Units Certificates.

                  (b) The form of the Agent's  certificate of  authentication of
         the Stripped Equity Units shall be in substantially  the form set forth
         on the form of the Stripped Equity Units Certificates.

                                  ARTICLE III.
                                THE EQUITY UNITS

         Section 3.1       TITLE AND TERMS; DENOMINATIONS.

                  (a) The aggregate  number of Equity Units and Stripped  Equity
         Units,  if any,  evidenced by Certificates  authenticated,  executed on
         behalf of the Holders and delivered hereunder is limited to [ ] ([ ] if
         the   Underwriters'   (as  defined  in  the   Underwriting   Agreement)
         over-allotment  option  pursuant  to  the  Underwriting   Agreement  is
         exercised in full), except for Certificates authenticated, executed and
         delivered upon registration of transfer of, in exchange for, or in lieu
         of other  Certificates  pursuant to Section 3.4, 3.5, 3.10, 3.13, 3.14,
         5.9, 5.10 or 8.5.

                                      -19-
<PAGE>

                  (b) The Certificates shall be issuable only in registered form
         and only in  denominations  of a single Unit and any integral  multiple
         thereof.

         Section 3.2       RIGHTS AND OBLIGATIONS EVIDENCED BY THE CERTIFICATES.

                  (a) Each Equity Units Certificate shall evidence the number of
         Equity   Units   specified   therein,   with  each  such  Equity  Units
         representing  the  ownership  by the  Holder  thereof  of a  beneficial
         interest  in a  Note  or  the  appropriate  Treasury  Consideration  or
         Applicable  Ownership Interest in the Treasury  Portfolio,  as the case
         may  be,   subject  to  the  Pledge  of  such  Note  or  such  Treasury
         Consideration  or  Applicable   Ownership   Interest  in  the  Treasury
         Portfolio,  as the case may be, by such  Holder  pursuant to the Pledge
         Agreement, and the rights and obligations of the Holder thereof and the
         Company   under   one   Forward   Purchase   Contract.   The  Agent  as
         attorney-in-fact  for, and on behalf of, the Holder of each Equity Unit
         shall  pledge,  pursuant  to the  Pledge  Agreement,  the  Note  or the
         appropriate Treasury  Consideration or Applicable Ownership Interest in
         the  Treasury  Portfolio,  as the case may be,  forming  a part of such
         Equity Units, to the Collateral Agent and grant to the Collateral Agent
         a security interest in the right, title, and interest of such Holder in
         such  Note or  such  Treasury  Consideration  or  Applicable  Ownership
         Interest in the Treasury Portfolio, as the case may be, for the benefit
         of the  Company,  to secure the  obligation  of the  Holder  under each
         Forward Purchase  Contract to purchase the Common Stock of the Company.
         Prior to the  purchase  of shares of Common  Stock  under each  Forward
         Purchase  Contract,  such Forward Purchase  Contracts shall not entitle
         the  Holders  of Equity  Units  Certificates  to any of the rights of a
         holder of shares of Common Stock,  including,  without limitation,  the
         right to vote or receive any dividends or other  payments or to consent
         or to receive  notice as  stockholders  in respect of the  meetings  of
         stockholders or for the election of directors of the Company or for any
         other matter,  or any other rights  whatsoever as  stockholders  of the
         Company.

                  (b) Each Stripped Equity Units  Certificate shall evidence the
         number of  Stripped  Equity  Units  specified  therein,  with each such
         Stripped Equity Units  representing the ownership by the Holder thereof
         of a 1/20 undivided beneficial interest in a Treasury Security, subject
         to the Pledge of such interest in such Treasury Security by such Holder
         pursuant to the Pledge Agreement, and the rights and obligations of the
         Holder thereof and the Company under one Forward Purchase Contract. The
         Agent as  attorney-in-fact  for,  and on behalf  of, the Holder of each
         Stripped Equity Units shall pledge,  pursuant to the Pledge  Agreement,
         the Treasury Security, forming a part of such Stripped Equity Units, to
         the  Collateral  Agent and  grant to the  Collateral  Agent a  security
         interest  in the  right,  title  and  interest  of such  Holder in such
         Treasury  Security  for the  benefit  of the  Company,  to  secure  the
         obligation  of the  Holder  under each  Forward  Purchase  Contract  to
         purchase  shares of Common  Stock  pursuant to this  Agreement  and the
         related Forward Purchase  Contract.  Prior to the purchase of shares of
         Common  Stock  under  each  Forward  Purchase  Contract,  such  Forward
         Purchase  Contracts  shall not entitle  the Holders of Stripped  Equity
         Units Certificates to any of the rights of a holder of shares of Common
         Stock, including,  without limitation, the right to vote or receive any
         dividends  or other  payments  or to consent  or to  receive  notice as
         stockholders  in respect of the  meetings  of  stockholders  or for the
         election of  directors of the Company or for any other  matter,  or any
         other rights whatsoever as stockholders of the Company.

                                      -20-
<PAGE>

         Section 3.3       EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

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

                  (b) The  Certificates  shall  be  executed  on  behalf  of the
         Company by the Chief Executive  Officer,  the Chief Financial  Officer,
         the  President,  any  Vice-President,   the  Treasurer,  any  Assistant
         Treasurer,  the Secretary or any Assistant  Secretary (or other officer
         performing  similar  functions)  of the  Company and  delivered  to the
         Agent.  The signature of any of these officers on the  Certificates may
         be manual or by facsimile.

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

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

                  (e)  Each   Certificate   shall  be  dated  the  date  of  its
         authentication.

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

         Section 3.4       TEMPORARY CERTIFICATES.

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

                                      -21-
<PAGE>

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

         Section 3.5       REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.

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

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

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

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

                                      -22-
<PAGE>

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

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

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

                       (i) if the Stock Purchase Date has occurred,  deliver the
                  shares of Common  Stock  issuable  in respect  of the  Forward
                  Purchase  Contracts  forming  a part of the  Equity  Units  or
                  Stripped Equity Units,  as the case may be,  evidenced by such
                  Certificate,

                       (ii) in the case of Equity Units, if a Termination  Event
                  shall have occurred prior to the Stock Purchase Date, transfer
                  the  Notes  or  the  appropriate  Treasury   Consideration  or
                  Applicable  Ownership Interest in the Treasury  Portfolio,  as
                  applicable, relating to such Equity Units, or

                       (iii)  in  the  case  of  Stripped  Equity  Units,  if  a
                  Termination  Event  shall  have  occurred  prior to the  Stock
                  Purchase Date,  transfer the Treasury  Securities  relating to
                  such  Stripped  Equity  Units,  in each  case  subject  to the
                  applicable  conditions  and in accordance  with the applicable
                  provisions of Article V.

         Section 3.6       BOOK-ENTRY INTERESTS.

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

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

                                      -23-
<PAGE>

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

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

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

         Section 3.7       NOTICES TO HOLDERS.

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

         Section 3.8       APPOINTMENT OF SUCCESSOR CLEARING AGENCY.

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

         Section 3.9       DEFINITIVE CERTIFICATES.

         If

                       (i) a Clearing  Agency elects to discontinue its services
                  as securities  depositary with respect to the Equity Units and
                  Stripped  Equity Units or ceases to be eligible as a "clearing
                  agency" under the Exchange Act and a successor Clearing Agency
                  is not  appointed  within 90 days  after  such  discontinuance
                  pursuant to Section 3.8,

                       (ii) the  Company  elects  to  terminate  the  book-entry
                  system through the Clearing  Agency with respect to the Equity
                  Units and Stripped Equity Units, or

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

then upon  surrender  of the Global  Certificates  representing  the  Book-Entry
Interests  with  respect to the Equity  Units and  Stripped  Equity Units by the
Clearing  Agency,  accompanied by registration  instructions,  the Company shall
cause definitive Certificates to be delivered to

                                      -24-
<PAGE>

Clearing Agency Participants in accordance with the instructions of the Clearing
Agency.  The Company and the Agent shall not be liable for any delay in delivery
of such  instructions  and may  conclusively  rely on and shall be  protected in
relying on such instructions.

         Section 3.10      MUTILATED, DESTROYED, LOST AND STOLEN CERTIFICATES.

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

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

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

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

                  (e) Every new  Certificate  issued pursuant to this Section in
         lieu of any destroyed,  lost or stolen  Certificate shall constitute an
         original  additional  contractual  obligation of the Company and of the
         Holder in respect of the Equity Units or Stripped  Equity Units, as the
         case may be, evidenced thereby,  whether or not the destroyed,  lost or
         stolen  Certificate  (and the Equity  Units and  Stripped  Equity Units
         evidenced  thereby)  shall be at any time

                                      -25-
<PAGE>

         enforceable by anyone, and shall be entitled to all the benefits and be
         subject  to  all  the   obligations  of  this  Agreement   equally  and
         proportionately   with  any  and  all  other   Certificates   delivered
         hereunder.

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

         Section 3.11      PERSONS DEEMED OWNERS.

                  (a) Prior to due presentment of a Certificate for registration
         of transfer, the Company and the Agent, and any agent of the Company or
         the  Agent,  may treat the  Person in whose  name such  Certificate  is
         registered  as the owner of the Equity Units or Stripped  Equity Units,
         as the case may be,  evidenced  thereby,  for the purpose of  receiving
         interest   payments  on  the  Notes,   receiving  payment  of  Contract
         Adjustment Payments,  performance of the Forward Purchase Contracts and
         for all other  purposes  whatsoever  (subject  to  Section  4.1(a)  and
         5.2(a)),  whether  or not  any  such  payments  shall  be  overdue  and
         notwithstanding any notice to the contrary, and neither the Company nor
         the Agent, nor any agent of the Company or the Agent, shall be affected
         by notice to the contrary.

                  (b) Notwithstanding the foregoing,  with respect to any Global
         Certificate, nothing herein shall prevent the Company, the Agent or any
         agent of the  Company or the Agent from  giving  effect to any  written
         certification,  proxy or other authorization  furnished by any Clearing
         Agency (or its  nominee),  as a Holder,  with  respect  to such  Global
         Certificate  or impair,  as between such Clearing  Agency and owners of
         beneficial  interests  in such Global  Certificate,  the  operation  of
         customary  practices  governing the exercise of rights of such Clearing
         Agency (or its nominee) as Holder of such Global  Certificate.  None of
         the Company,  the Agent,  or any agent of the Company or the Agent will
         have any  responsibility  or  liability  for any aspect of the  records
         relating  to or  payments  made  on  account  of  beneficial  ownership
         interests  in a  Global  Certificate  or  maintaining,  supervising  or
         reviewing any records relating to such beneficial ownership interests.

         Section 3.12      CANCELLATION.

                  (a) All Certificates surrendered (i) for delivery of shares of
         Common Stock on or after any Settlement Date; (ii) upon the transfer of
         Notes, the appropriate  Treasury  Consideration or Applicable Ownership
         Interest in the Treasury Portfolio, or Treasury Securities, as the case
         may be, after the occurrence of a Termination  Event; or (iii) upon the
         registration  of a transfer  or  exchange  of Equity  Units or Stripped
         Equity Units,  as the case may be, shall,  if surrendered to any Person
         other than the Agent,  be  delivered  to the Agent and,  if not already
         cancelled,  shall be promptly  cancelled  by it. The Company may at any
         time deliver to the Agent for cancellation any Certificates  previously
         authenticated,  executed and delivered  hereunder which the Company may
         have  acquired  in any  manner  whatsoever,  and  all  Certificates  so
         delivered shall, upon Issuer Order, be promptly cancelled by the Agent.
         No  Certificates  shall be  authenticated,  executed  on  behalf of the
         Holder and  delivered  in lieu of or in exchange  for any  Certificates
         cancelled as provided in this Section, except as expressly permitted by
         this Agreement.  All cancelled  Certificates

                                      -26-
<PAGE>

         held by the Agent shall be disposed of by the Agent in accordance  with
         its customary procedures.

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

         Section 3.13      ESTABLISHMENT OF STRIPPED EQUITY UNITS.

                  (a) A Holder may separate the Pledged Notes,  Pledged Treasury
         Consideration or Pledged Applicable  Ownership Interest in the Treasury
         Portfolio,  as applicable,  from the related Forward Purchase Contracts
         in respect of the Equity Units held by such Holder by substituting  for
         such  Pledged  Notes,   Pledged   Treasury   Consideration  or  Pledged
         Applicable  Ownership Interest in the Treasury  Portfolio,  as the case
         may be, Treasury  Securities that will pay, on the Stock Purchase Date,
         an amount equal to the aggregate  principal amount of such Notes or the
         appropriate Treasury Consideration or Applicable Ownership Interest (as
         specified in clause (A) of the definition of such term) in the Treasury
         Portfolio (a "Collateral Substitution"), at any time from and after the
         date of this  Agreement  and on or prior  to the  second  Business  Day
         immediately  preceding the Stock Purchase Date, by (i) depositing  with
         the Collateral Agent Treasury  Securities having an aggregate principal
         amount equal to the aggregate  Stated Amount of such Equity Units,  and
         (ii)  transferring the related Equity Units to the Agent accompanied by
         a notice to the Agent,  substantially  in the form of Exhibit D hereto,
         stating that the Holder has transferred the relevant amount of Treasury
         Securities  to the  Collateral  Agent  and  requesting  that the  Agent
         instruct the  Collateral  Agent to release the Pledged  Notes,  Pledged
         Treasury  Consideration or Pledged Applicable Ownership Interest in the
         Treasury  Portfolio,  as the case may be, underlying such Equity Units,
         whereupon  the  Agent  shall  promptly  give  such  instruction  to the
         Collateral  Agent,  substantially  in the  form of  Exhibit  C  hereto.
         Notwithstanding  the  foregoing,  a Holder may not separate the Pledged
         Notes,  Pledged Treasury  Consideration or Pledged Applicable Ownership
         Interest  in the  Treasury  Portfolio,  as the  case  may be,  from the
         related Forward Purchase  Contracts in respect of the Equity Units held
         by such Holder during the periods  beginning on the fourth Business Day
         prior to any  Remarketing  Period and ending on the third  Business Day
         after the end of such Remarketing  Period. Upon receipt of the Treasury
         Securities described in clause (i) above and the instruction  described
         in clause  (ii)  above,  in  accordance  with the  terms of the  Pledge
         Agreement, the Collateral Agent will release to the Agent, on behalf of
         the Holder,  such Pledged  Notes,  Pledged  Treasury  Consideration  or
         Pledged Applicable Ownership Interest in the Treasury Portfolio, as the
         case may be, from the Pledge,  free and clear of the Company's security
         interest therein, and upon receipt thereof the Agent shall promptly:

                       (i) cancel the related Equity Units;

                       (ii)  transfer  the  Pledged  Notes,   Pledged   Treasury
                  Consideration or Pledged Applicable  Ownership Interest in the
                  Treasury Portfolio, as the case may be, to the Holder; and

                                      -27-
<PAGE>

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

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

                  (c) Holders may make Collateral  Substitutions (i) if Treasury
         Securities are being  substituted  for Pledged Notes,  only in integral
         multiples of 20 Equity Units,  or (ii) if the Collateral  Substitutions
         occur after the Remarketing Date or any Subsequent Remarketing Date, or
         after a Tax  Event  Redemption,  as the case may be,  only in  integral
         multiples  of Equity  Units  such that the  Treasury  Securities  to be
         deposited  and  the  Treasury  Consideration  or  Applicable  Ownership
         Interest  in the  Treasury  Portfolio  to be  released  are in integral
         multiples of $1,000.

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

                  (e) Except as described in this Section  3.13,  for so long as
         the Forward  Purchase  Contract  underlying  an Equity Units remains in
         effect,  such Equity Units shall not be separable into its  constituent
         parts,  and the rights  and  obligations  of the Holder of such  Equity
         Units in respect of the Note or the appropriate Treasury  Consideration
         or Applicable Ownership Interest in the Treasury Portfolio, as the case
         may be, and the Forward Purchase Contract  comprising such Equity Units
         may be  acquired,  and may be  transferred  and  exchanged,  only as an
         Equity Units.

         Section 3.14      REESTABLISHMENT OF EQUITY UNITS.

                                      -28-
<PAGE>

                  (a) A Holder of Stripped Equity Units may  reestablish  Equity
         Units at any time from and after the date of this  Agreement  and on or
         prior to the  second  Business  Day  immediately  preceding  the  Stock
         Purchase Date, by (i) depositing with the Collateral Agent the Notes or
         the appropriate Treasury Consideration or Applicable Ownership Interest
         in the Treasury  Portfolio  (identified  and calculated by reference to
         the Treasury  Consideration  then comprising Equity Units), as the case
         may be, then comprising such number of Equity Units as is equal to such
         Stripped Equity Units and (ii)  transferring such Stripped Equity Units
         to the Agent accompanied by a notice to the Agent, substantially in the
         form of Exhibit D hereto,  stating that the Holder has  transferred the
         relevant amount of Notes or the appropriate  Treasury  Consideration or
         Applicable  Ownership Interest in the Treasury  Portfolio,  as the case
         may be, to the Collateral  Agent and requesting that the Agent instruct
         the  Collateral  Agent  to  release  the  Pledged  Treasury  Securities
         underlying  such  Stripped  Equity  Units,  whereupon  the Agent  shall
         promptly give such instruction to the Collateral  Agent,  substantially
         in the form of  Exhibit  C hereto.  Notwithstanding  the  foregoing,  a
         Holder may not reestablish Equity Units during the periods beginning on
         the fourth Business Day prior to any  Remarketing  Period and ending on
         the third Business Day after the end of such Remarketing  Period.  Upon
         receipt  of the  Notes or the  appropriate  Treasury  Consideration  or
         Applicable  Ownership Interest in the Treasury  Portfolio,  as the case
         may be, described in clause (i) above and the instruction  described in
         clause  (ii)  above,  in  accordance  with  the  terms  of  the  Pledge
         Agreement, the Collateral Agent will release to the Agent, on behalf of
         the Holder,  such Pledged Treasury Securities from the Pledge, free and
         clear of the  Company's  security  interest  therein,  and upon receipt
         thereof the Agent shall promptly:

                       (i) cancel the related Stripped Equity Units;

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

                       (iii) authenticate,  execute on behalf of such Holder and
                  deliver an Equity Units Certificate executed by the Company in
                  accordance  with  Section  3.3  evidencing  the same number of
                  Forward Purchase  Contracts as were evidenced by the cancelled
                  Stripped Equity Units.

                  (b) Holders of Stripped  Equity Units may  reestablish  Equity
          Units (i) only in integral  multiples of 20 Stripped  Equity Units for
          20  Equity  Units  or (ii) if the  reestablishment  occurs  after  the
          Remarketing  Date (in either case, if such  remarketing is successful)
          or any Subsequent  Remarketing  Date, or after a Tax Event Redemption,
          only in  integral  multiples  of Stripped  Equity  Units such that the
          Treasury  Consideration to be deposited and the Treasury Securities to
          be released are in integral multiples of $1,000.

                  (c) Except as provided in this  Section  3.14,  for so long as
          the Forward  Purchase  Contract  underlying  a Stripped  Equity  Units
          remains in effect,  such Stripped  Equity Units shall not be separable
          into its  constituent  parts,  and the rights and  obligations  of the
          Holder  of such  Stripped  Equity  Units in  respect  of the  Treasury
          Security and Forward Purchase Contract comprising such Stripped Equity
          Units may be acquired, and may be transferred and exchanged, only as a
          Stripped Equity Units.

                                      -29-
<PAGE>

                  (d) Holders of Stripped  Equity Units who  reestablish  Equity
          Units shall be  responsible  for any fees or  expenses  payable to the
          Collateral  Agent for its services as  Collateral  Agent in respect of
          the  substitution,  and the Company shall not be  responsible  for any
          such fees or expenses.

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

         Section 3.15      TRANSFER OF COLLATERAL UPON OCCURRENCE OF TERMINATION
                           EVENT.

         Upon the  occurrence  of a  Termination  Event and the  transfer to the
Agent  of the  Notes,  the  appropriate  Treasury  Consideration  or  Applicable
Ownership Interest in the Treasury Portfolio, or the Treasury Securities, as the
case may be,  underlying the Equity Units and the Stripped Equity Units pursuant
to the  terms  of  the  Pledge  Agreement,  the  Agent  shall  request  transfer
instructions   with   respect  to  such  Notes  or  the   appropriate   Treasury
Consideration or Applicable  Ownership  Interest in the Treasury  Portfolio,  or
Treasury  Securities,  as the case may be, from each  Holder by written  request
mailed to such Holder at its address as it appears in the Equity Units  Register
or the  Stripped  Equity  Units  Register,  as the case may be. Upon  book-entry
transfer of the Equity  Units or Stripped  Equity Units or delivery of an Equity
Units  Certificate or Stripped  Equity Units  Certificate to the Agent with such
transfer  instructions,  the Agent shall  transfer  the Notes,  the  appropriate
Treasury   Consideration  or  Applicable  Ownership  Interest  in  the  Treasury
Portfolio,  or Treasury  Securities,  as the case may be, underlying such Equity
Units or Stripped Equity Units, as the case may be, to such Holder by book-entry
transfer, or other appropriate procedures, in accordance with such instructions.
In the event a Holder  would be entitled to receive  less than $1,000  principal
amount at maturity of any  Treasury  security,  the Agent shall  dispose of such
Treasury  security for cash and deliver such cash to the Holder.  In the event a
Holder of Equity Units or Stripped Equity Units fails to effect such transfer or
delivery,  the Notes,  the  appropriate  Treasury  Consideration  or  Applicable
Ownership Interest in the Treasury Portfolio or Treasury Securities, as the case
may be,  underlying  such Equity Units or Stripped Equity Units, as the case may
be, and any distributions thereon, shall be held in the name of the Agent or its
nominee in trust for the benefit of such Holder,  until (i) such Equity Units or
Stripped  Equity  Units are  transferred  or the  Equity  Units  Certificate  or
Stripped  Equity  Units  Certificate  is  surrendered  or such  Holder  provides
satisfactory  evidence  that such Equity Units  Certificate  or Stripped  Equity
Units  Certificate  has  been  destroyed,  lost or  stolen,  together  with  any
indemnity  that may be  required  by the  Agent  and the  Company;  and (ii) the
expiration of the time period  specified in the  abandoned  property laws of the
relevant State.

                                      -30-
<PAGE>

         Section 3.16      NO CONSENT TO ASSUMPTION.

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

                                  ARTICLE IV.
                                    THE NOTES

         Section 4.1       PAYMENT OF INTEREST; RIGHTS TO INTEREST PAYMENTS
                           PRESERVED; NOTICE.

                  (a)  A  payment  on  any  Note,   Treasury   Consideration  or
         Applicable  Ownership Interest in the Treasury  Portfolio,  as the case
         may be,  which is paid on any  Payment  Date other than a Payment  Date
         with  respect to the Stated  Amount due on  Treasury  Consideration  or
         Applicable  Ownership Interest in the Treasury Portfolio shall, subject
         to  receipt  thereof  by the Agent  from the  Collateral  Agent (if the
         Collateral  Agent is the  registered  owner thereof) as provided by the
         terms of the Pledge Agreement,  be paid to the Person in whose name the
         Equity  Units  Certificate  (or one or more  Predecessor  Equity  Units
         Certificates)   of  which  such  Note  or  the   appropriate   Treasury
         Consideration  or  Applicable   Ownership   Interest  in  the  Treasury
         Portfolio,  as the case may be, is a part is registered at the close of
         business on the Record Date for such Payment Date.

                  (b) Each Equity Units  Certificate  evidencing Notes delivered
         under this  Agreement upon  registration  of transfer of or in exchange
         for or in lieu of any other  Equity Units  Certificate  shall carry the
         rights to interest  accrued and unpaid  which were carried by the Notes
         and Treasury  Consideration  or  Applicable  Ownership  Interest in the
         Treasury  Portfolio,  as the case may be,  underlying such other Equity
         Units Certificate.

                  (c) In the case of any  Equity  Units  with  respect  to which
         Early  Settlement  of  the  underlying  Forward  Purchase  Contract  is
         effected on an Early  Settlement  Date,  Merger Early Settlement of the
         underlying  Forward  Purchase  Contract is  effected on a Merger  Early
         Settlement  Date,  Cash  Settlement  is  effected on the  Business  Day
         immediately   preceding  the  Stock  Purchase  Date,  or  a  Collateral
         Substitution  is  effected,  in each  case on a date  that is after any
         Record  Date  and on or  prior to the  next  succeeding  Payment  Date,
         payments  on the  Note or the  appropriate  Treasury  Consideration  or
         Applicable  Ownership Interest in the Treasury  Portfolio,  as the case
         may be,  underlying such Equity Units otherwise payable on such Payment
         Date shall be payable on such Payment Date  notwithstanding  such Early
         Settlement,  Merger Early  Settlement,  Cash  Settlement  or Collateral
         Substitution,  as the case may be, and such payments shall,  subject to
         receipt  thereof by the  Agent,  be payable to the Person in whose name
         the Equity Units  Certificate (or one or more Predecessor  Equity Units
         Certificates)  was  registered  at the close of  business on the Record
         Date.  Except  as  otherwise  expressly  provided  in  the  immediately
         preceding  sentence,  in the case of any Equity  Units with  respect to
         which Early  Settlement,  Merger Early Settlement or Cash Settlement of
         the underlying Forward Purchase Contract

                                      -31-
<PAGE>

         is  effected,  or with respect to which a Collateral  Substitution  has
         been  effected,  payments  on the  related  Notes  or  payments  on the
         appropriate Treasury  Consideration or Applicable Ownership Interest in
         the  Treasury  Portfolio,  as the case may be, that would  otherwise be
         payable after the applicable  Settlement  Date or after such Collateral
         Substitution, as the case may be, shall not be payable hereunder to the
         Holder of such  Equity  Units;  provided,  that to the extent that such
         Holder  continues to hold the Separate Notes that formerly  comprised a
         part of such Holder's  Equity  Units,  such Holder shall be entitled to
         receive the payments on such Separate Notes.

         Section 4.2       NOTICE AND VOTING.

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

         Section 4.3       TAX EVENT REDEMPTION.

         Upon the occurrence of a Tax Event  Redemption  prior to the successful
remarketing  of the Notes,  the  Company  may elect to  instruct  in writing the
Collateral  Agent to apply,  and upon such written  instruction,  the Collateral
Agent shall apply, out of the aggregate  Redemption Price for the Notes that are
components  of  Equity  Units,  an  amount  equal  to the  aggregate  Tax  Event
Redemption Principal Amount for the Notes that are components of Equity Units to
purchase on behalf of the Holders of Equity  Units the  Treasury  Portfolio  and
promptly remit the remaining  portion of such aggregate  Redemption Price to the
Agent for payment to the Holders of such Equity  Units.  The Treasury  Portfolio
will be substituted for the Pledged Notes, and will be pledged to the Collateral
Agent in  accordance  with the  terms of the  Pledge  Agreement  to  secure  the
obligation  of each Holder of an Equity Units to purchase the Common Stock under
the  Forward  Purchase  Contract  constituting  a part  of  such  Equity  Units.
Following  the  occurrence  of a Tax  Event  Redemption  prior  to a  successful
remarketing of the Notes,  the Holders of Equity Units and the Collateral  Agent
shall have such security  interests,  rights and obligations with respect to the
Treasury Portfolio as the Holder of Equity Units and the Collateral Agent had in
respect of the  Notes,  as the case may be,  subject  to the  Pledge  thereof as
provided in  Articles  II, III,  IV, V and VI of the Pledge  Agreement,  and any
reference  herein  or in the  Certificates  to the Note  shall be deemed to be a
reference  to  such  Treasury  Portfolio  and  any  reference  herein  or in the
Certificates  to  interest  on the Notes  shall be

                                      -32-
<PAGE>

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

         The  Company  shall  cause  notice  of any Tax Event  Redemption  to be
mailed, at least 30 calendar days but not more than 60 calendar days before such
Tax Event  Redemption Date, to each Holder of Equity Units including Notes to be
redeemed at its registered address.

         Upon the  occurrence  of a Tax Event  Redemption  after the  successful
remarketing of the Notes,  the  Redemption  Price will be payable in cash to the
holders of the Notes.

                                   ARTICLE V.
                 THE FORWARD PURCHASE CONTRACTS; THE REMARKETING

         Section 5.1       PURCHASE OF SHARES OF COMMON STOCK.

                  (a) Each  Forward  Purchase  Contract  shall,  unless an Early
         Settlement  has  occurred in  accordance  with Section 5.9, or a Merger
         Early Settlement has occurred in accordance with Section 5.10, obligate
         the Holder of the related Equity Units or Stripped Equity Units, as the
         case  may be,  to  purchase,  and the  Company  to sell,  on the  Stock
         Purchase Date at a price equal to $50 (the "Purchase  Price"), a number
         of newly  issued  shares of Common Stock equal to the  Settlement  Rate
         unless,  on or prior to the  Stock  Purchase  Date,  there  shall  have
         occurred a  Termination  Event with  respect to the Units of which such
         Forward Purchase Contract is a part. The "Settlement Rate" is equal to,

                       (i) if the Applicable  Market Value (as defined below) is
                  greater  than or  equal to $[ ] (the  "Threshold  Appreciation
                  Price"),  [ ] shares of  Common  Stock  per  Forward  Purchase
                  Contract,

                       (ii) if the  Applicable  Market  Value  is less  than the
                  Threshold  Appreciation  Price,  but is greater than $[ ], the
                  number of shares of Common Stock per Forward Purchase Contract
                  equal to the  Stated  Amount of the  related  Equity  Units or
                  Stripped  Equity  Units,  as the case may be,  divided  by the
                  Applicable Market Value, and

                       (iii) if the Applicable  Market Value is equal to or less
                  than $[ ], [ ] shares of Common  Stock  per  Forward  Purchase
                  Contract,  in each case subject to  adjustment  as provided in
                  Section  5.6 (and in each case  rounded  upward or downward to
                  the nearest 1/10,000th of a share).

         As provided in Section 5.12, no fractional  shares of Common Stock will
be issued upon settlement of Forward Purchase Contracts.

         Promptly  after  the   calculation  of  the  Settlement  Rate  and  the
Applicable  Market Value,  the Company shall give the Agent notice thereof.  All
calculations and determinations of the Settlement Rate and the Applicable Market
Value  shall be made by the  Company  or its  agents

                                      -33-
<PAGE>

based  on  their  good  faith   calculations,   and  the  Agent  shall  have  no
responsibility with respect thereto.

                  (b) No fractional shares of Common Stock will be issued by the
         Company with respect to the payment of Contract  Adjustment Payments on
         the  Stock  Purchase  Date.  In lieu  of  fractional  shares  otherwise
         issuable with respect to such payment of Contract Adjustment  Payments,
         the Holder will be entitled to receive an amount of cash as provided in
         Section 5.12.

                  (c) The  "Applicable  Market  Value"  means the average of the
         Closing  Price per share of Common Stock on each of the 20  consecutive
         Trading Days ending on the third Trading Day immediately  preceding the
         Stock  Purchase  Date.  The "Closing  Price" of the Common Stock on any
         date of  determination  means the closing sale price (or, if no closing
         price is reported, the last reported sale price) of the Common Stock on
         the New York Stock Exchange (the "NYSE") on such date or, if the Common
         Stock is not  listed  for  trading  on the NYSE on any  such  date,  as
         reported in the composite  transactions for the principal United States
         securities  exchange on which the Common Stock is so listed,  or if the
         Common Stock is not so listed on a United  States  national or regional
         securities exchange, as reported by The Nasdaq Stock Market, or, if the
         Common  Stock is not so  reported,  the last  quoted  bid price for the
         Common Stock in the over-the-counter market as reported by the National
         Quotation Bureau or similar organization,  or, if such bid price is not
         available,  the  market  value  of the  Common  Stock  on such  date as
         determined by a nationally  recognized  independent  investment banking
         firm retained for this purpose by the Company.  A "Trading Day" means a
         day on which the Common Stock (A) is not suspended  from trading on any
         national   or  regional   securities   exchange   or   association   or
         over-the-counter  market at the close of business and (B) has traded at
         least  once  on  the  national  or  regional   securities  exchange  or
         association or  over-the-counter  market that is the primary market for
         the trading of the Common Stock.

                  (d) Each Holder of Equity Units or Stripped  Equity Units,  as
         the case may be, by its acceptance thereof,  irrevocably authorizes the
         Agent to enter into and perform the related Forward  Purchase  Contract
         on its  behalf as its  attorney-in-fact  (including  the  execution  of
         Certificates on behalf of such Holder), agrees to be bound by the terms
         and provisions thereof, covenants and agrees to perform its obligations
         under such Forward Purchase  Contracts,  and consents to the provisions
         hereof,  irrevocably  authorizes the Agent as its  attorney-in-fact  to
         enter  into and  perform  the  Pledge  Agreement  on its  behalf as its
         attorney-in-fact,  and consents to and agrees to be bound by the Pledge
         of the Notes,  the  appropriate  Treasury  Consideration  or Applicable
         Ownership  Interest  in  the  Treasury   Portfolio,   or  the  Treasury
         Securities  pursuant  to the  Pledge  Agreement;  provided  that upon a
         Termination  Event,  the rights of the Holder of such  Equity  Units or
         Stripped Equity Units,  as the case may be, under the Forward  Purchase
         Contract  may be  enforced  without  regard  to  any  other  rights  or
         obligations.  Each Holder of Equity Units or Stripped  Equity Units, as
         the case may be,  by its  acceptance  thereof,  further  covenants  and
         agrees  that,  to the extent and in the manner  provided in Section 5.4
         and the Pledge Agreement, but subject to the terms thereof, payments in
         respect  of  the  Notes,  the  appropriate  Treasury  Consideration  or
         Applicable  Ownership  Interest  in  the  Treasury  Portfolio,  or  the
         Treasury  Securities,  to be paid  upon  settlement  of  such  Holder's
         obligations  to  purchase  Common

                                      -34-
<PAGE>

         Stock under the Forward Purchase  Contract,  shall be paid on the Stock
         Purchase Date by the Collateral Agent to the Company in satisfaction of
         such Holder's obligations under such Forward Purchase Contract and such
         Holder shall acquire no right, title or interest in such payment.

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

         Section 5.2       CONTRACT ADJUSTMENT PAYMENTS.

                  (a) Contract  Adjustment Payments shall accrue on each Forward
         Purchase  Contract  constituting  a part of an Equity  Unit or Stripped
         Equity Unit at [ ]% per year of the Stated  Amount of such Equity Units
         or  Equity  Units,  from [ ],  2002  through  and  including  the Stock
         Purchase  Date,  provided  that no Contract  Adjustment  Payment  shall
         accrue after an Early Settlement or Merger Early Settlement. Subject to
         Section 5.3 herein,  the Company shall pay, on each Payment  Date,  the
         Contract  Adjustment  Payments,  if any,  payable  in  respect  of each
         Forward Purchase Contract to the Person in whose name a Certificate (or
         one or more  Predecessor  Certificates)  is  registered at the close of
         business on the Record Date immediately  preceding such Payment Date in
         such coin or  currency  of the United  States as at the time of payment
         shall be legal tender for payments.  The Contract Adjustment  Payments,
         if any, will be payable at the office in New York, New York, maintained
         for that purpose or, at the option of the  Company,  by check mailed to
         the address of the Person entitled  thereto at such Person's address as
         it  appears  on  the  Register  or by  wire  transfer  to  the  account
         designated  to the  Agent  by a prior  written  notice  by such  Person
         delivered at least five Business Days prior to the  applicable  Payment
         Date.

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

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

                  (d)  Subject  to  Sections  5.9 and  5.10,  in the case of any
         Equity Units or Stripped Equity Units, as the case may be, with respect
         to which Early  Settlement or Merger Early Settlement of the underlying
         Forward Purchase  Contract is effected on an Early Settlement Date or a
         Merger Early Settlement Date, respectively, or in respect of which Cash

                                      -35-
<PAGE>

         Settlement of the underlying  Forward Purchase  Contract is effected on
         the Business Day immediately preceding the Stock Purchase Date, or with
         respect  to which a  Collateral  Substitution  or an  establishment  or
         re-establishment  of an  Equity  Units  pursuant  to  Section  3.14  is
         effected,  in each case on a date that is after any Record  Date and on
         or prior to the  next  succeeding  Payment  Date,  Contract  Adjustment
         Payments on the Forward Purchase Contract  underlying such Equity Units
         or Stripped Equity Units, as the case may be, otherwise payable on such
         Payment Date shall be payable on such Payment Date notwithstanding such
         Cash Settlement, Early Settlement, Merger Early Settlement,  Collateral
         Substitution or establishment or  re-establishment of Equity Units, and
         such Contract  Adjustment Payments shall be paid to the Person in whose
         name the  Certificate  evidencing  such Equity Units or Stripped Equity
         Units (or one or more  Predecessor  Certificates)  is registered at the
         close of business on such Record Date.  Except as  otherwise  expressly
         provided  in the  immediately  preceding  sentence,  in the case of any
         Equity  Units or  Stripped  Equity  Units  with  respect  to which Cash
         Settlement, Early Settlement, Merger Early Settlement of the underlying
         Forward  Purchase  Contract is effected on the Business Day immediately
         preceding the Stock Purchase Date, an Early  Settlement  Date or Merger
         Early  Settlement  Date, as the case may be, or with respect to which a
         Collateral  Substitution or an establishment or  re-establishment of an
         Equity Unit has been effected,  Contract Adjustment  Payments,  if any,
         that would  otherwise be payable  after the Early  Settlement  Date, or
         Merger  Early   Settlement  Date,   Collateral   Substitution  or  such
         establishment or re-establishment with respect to such Forward Purchase
         Contract shall not be payable.

         Section 5.3       DEFERRAL OF CONTRACT ADJUSTMENT PAYMENTS.

                  (a) The Company shall have the right, at any time prior to the
         Stock Purchase Date, to defer the payment of any or all of the Contract
         Adjustment  Payments otherwise payable on any Payment Date, but only if
         the Company shall give the Holders and the Agent written  notice of its
         election  to defer  each  such  deferred  Contract  Adjustment  Payment
         (specifying the amount to be deferred) at least ten Business Days prior
         to the earlier of (i) the next succeeding Payment Date or (ii) the date
         the  Company is  required  to give notice of the Record Date or Payment
         Date with respect to payment of such  Contract  Adjustment  Payments to
         the NYSE or other applicable self-regulatory organization or to Holders
         of the Equity Units and  Stripped  Equity  Units,  but in any event not
         less than one  Business  Day prior to such Record  Date.  Any  Contract
         Adjustment  Payments so deferred shall, to the extent permitted by law,
         bear additional  Contract  Adjustment Payments thereon at the rate of [
         ]% per year  (computed  on the  basis of a  360-day  year of 12  30-day
         months),  compounding on each  succeeding  Payment Date,  until paid in
         full (such deferred  installments of Contract Adjustment  Payments,  if
         any, together with the additional  Contract Adjustment Payments accrued
         thereon,  being referred to herein as the "Deferred Contract Adjustment
         Payments"). Deferred Contract Adjustment Payments, if any, shall be due
         on the next  succeeding  Payment Date except to the extent that payment
         is deferred  pursuant  to this  Section  5.3.  No  Contract  Adjustment
         Payments  may be  deferred  to a date that is after the Stock  Purchase
         Date and no such deferral  period may end other than on a Payment Date.
         If the Forward Purchase Contracts are terminated upon the occurrence of
         a Termination Event, the Holder's right to receive Contract  Adjustment
         Payments,  if any,  and Deferred  Contract  Adjustment  Payments,  will
         terminate.

                                      -36-
<PAGE>

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

                  (c) In the event that the Company  elects to defer the payment
         of Contract Adjustment Payments on the Forward Purchase Contracts until
         the Stock Purchase Date, each Holder will receive on the Stock Purchase
         Date in lieu of a cash  payment a number of shares of Common  Stock (in
         addition to a number of shares of Common Stock equal to the  Settlement
         Rate) equal to (A) the aggregate amount of Deferred Contract Adjustment
         Payments payable to such Holder (net of any required tax withholding on
         such Deferred Contract Adjustment  Payment,  which shall be remitted to
         the  appropriate  taxing  jurisdiction)  divided by (B) the  Applicable
         Market Value.

                  (d) No fractional shares of Common Stock will be issued by the
         Company  with  respect to the payment of Deferred  Contract  Adjustment
         Payments  on the Stock  Purchase  Date.  In lieu of  fractional  shares
         otherwise  issuable  with respect to such payment of Deferred  Contract
         Adjustment  Payments,  the Holder will be entitled to receive an amount
         in cash as provided in Section 5.12.

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

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

                       (ii) as a result of a  reclassification  of the Company's
                  Capital  Stock or the exchange or  conversion  of one class or
                  series of the  Company's  Capital  Stock for another  class or
                  series  of  the  Company's  Capital  Stock;  the  purchase  of
                  fractional  interests  of the  Common  Stock  pursuant  to the
                  conversion or exchange  provisions of such Common Stock or the
                  security being converted or exchanged;

                       (iii)  dividends  or  distributions  in any series of the
                  Company's  Common Stock (or rights to acquire Common Stock) or
                  repurchases,  acquisitions  or  redemptions of Common Stock in
                  connection  with the  issuance or exchange of the Common Stock
                  (or securities  convertible into or exchangeable for shares of
                  the Company's Common Stock); or

                                      -37-
<PAGE>

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

         Section 5.4       PAYMENT OF PURCHASE PRICE; REMARKETING.

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

                       (i) A Holder of an Equity  Unit who has so  notified  the
                  Agent of its  intention to make a Cash  Settlement is required
                  to pay the  Purchase  Price to the  Collateral  Agent prior to
                  11:00 a.m.,  New York City time,  on the seventh  Business Day
                  immediately  preceding the Stock Purchase Date in lawful money
                  of the United  States by certified or cashiers'  check or wire
                  transfer,  in each  case  payable  to or upon the order of the
                  Company.  Any cash  received by the  Collateral  Agent will be
                  paid to the Company on the Stock  Purchase  Date in settlement
                  of the Forward Purchase  Contract in accordance with the terms
                  of this Agreement and the Pledge Agreement.

                       (ii) If a Holder of an Equity  Unit  fails to notify  the
                  Agent of its intention to make a Cash Settlement in accordance
                  with this  paragraph  (a),  the Holder shall be deemed to have
                  consented to the  disposition of the Pledged Notes pursuant to
                  the  remarketing  as described in  paragraph  (b) below.  If a
                  Holder of an Equity  Unit does notify the Agent as provided in
                  this  paragraph (a) of its intention to pay the Purchase Price
                  in cash,  but  fails  to make  such  payment  as  required  by
                  paragraph  (a)(i)  above,  the Holder  shall be deemed to have
                  consented to the  disposition of the Pledged Notes pursuant to
                  the remarketing as described in paragraph 5.4 (b) below.

                  (b) (i) The Company has engaged the Remarketing  Agent to sell
         the Notes of (A) Holders of Equity Units,  other than Holders that have
         elected  not  to  participate  in  the  remarketing   pursuant  to  the
         procedures  set forth in  subsection  (g)  below,  and (B)  holders  of
         Separate  Notes that have  elected to  participate  in the  remarketing
         pursuant to the  procedures  set forth in Section  4.5(d) of the Pledge
         Agreement. On the seventh Business Day prior to the Remarketing Date or
         the first day of any  subsequent  Remarketing  Period,  the Agent shall
         give  Holders of Equity  Units and holders of Separate  Notes notice of
         the  remarketing  (the  form of  which  notice  to be  provided  by the
         Company)  in a daily  newspaper  in the  English  language  of  general
         circulation  in The City of New York,  which is expected to be The Wall
         Street  Journal,  including  the  specific  U.S.  Treasury  security or
         securities  (including  the CUSIP number and/or the principal  terms of
         such  Treasury  security or  securities)  described in  subsection  (g)
         below, that must be delivered by Holders

                                      -38-
<PAGE>

         of Equity  Units  that  elect  not to  participate  in the  remarketing
         pursuant to subsection  (g) below,  no later than 10:00 a.m.,  New York
         City time, on the fourth Business Day preceding the Remarketing Date or
         the first day of any Subsequent Remarketing Period, as applicable.  The
         Agent shall  notify,  by 10:00 a.m.,  New York City time,  on the third
         Business Day  preceding  the  Remarketing  Date or the first day of any
         subsequent Remarketing Period, as applicable, the Remarketing Agent and
         the Collateral  Agent of the aggregate  number of Notes of Equity Units
         Holders  to be  remarketed.  On  the  third  Business  Day  immediately
         preceding  the  Remarketing  Date or the  first  day of any  subsequent
         Remarketing Period, as applicable, no later than by 10:00 a.m. New York
         City time, pursuant to the terms of the Pledge Agreement, the Custodial
         Agent will  notify the  Remarketing  Agent of the  aggregate  number of
         Separate Notes to be remarketed.  On the third Business Day immediately
         preceding  the  Remarketing  Date or the  first  day of any  subsequent
         Remarketing  Period,  as  applicable,  the  Collateral  Agent  and  the
         Custodial Agent,  pursuant to the terms of the Pledge  Agreement,  will
         deliver  for  remarketing  to the  Remarketing  Agent  all  Notes to be
         remarketed.

                  (c)  Upon  receipt  of such  notice  from  the  Agent  and the
         Custodial  Agent  and such  Notes  from the  Collateral  Agent  and the
         Custodial Agent, the Remarketing  Agent will, on the Remarketing  Date,
         use its commercially reasonable best efforts to (i) establish a rate of
         interest  that, in the opinion of the  Remarketing  Agent,  will,  when
         applied to the outstanding Notes (assuming,  even if not true, that all
         of the Notes are included in the remarketing),  enable the then current
         aggregate  market  value  of  the  Notes  to  have  a  value  equal  to
         approximately  100.25% of the  Remarketing  Value as of the Remarketing
         Date or as of any Subsequent  Remarketing Date, as the case may be (the
         "Reset Rate") and (ii) sell such Notes on such date at a price equal to
         100.25% of the Remarketing Value.

                  (d)  The  Remarketing  Agent  will  use  the  proceeds  from a
         successful  remarketing  to  purchase  the  appropriate  U.S.  Treasury
         securities  (the  "Agent-purchased  Treasury  Consideration")  with the
         CUSIP numbers, if any, selected by the Remarketing Agent,  described in
         clauses (1) and (2) of the definition of  Remarketing  Value related to
         the Notes of Holders  of Equity  Units or that were  remarketed.  On or
         prior to the third Business Day following the  Remarketing  Date or any
         Subsequent  Remarketing  Date the Remarketing  Agent shall deliver such
         Agent-purchased  Treasury  Consideration  to  the  Agent,  which  shall
         thereupon deliver such  Agent-purchased  Treasury  Consideration to the
         Collateral Agent. The Collateral Agent, for the benefit of the Company,
         will thereupon apply such Agent-purchased  Treasury  Consideration,  in
         accordance  with  the  Pledge   Agreement,   to  secure  such  Holders'
         obligations under the Forward Purchase Contracts. The Remarketing Agent
         will  deduct as a  remarketing  fee an amount  not  exceeding  25 basis
         points  (0.25%)  of  the  total  proceeds  from  the  remarketing  (the
         "Remarketing Fee"). The Remarketing Agent will remit (1) the portion of
         the proceeds from the remarketing attributable to the Separate Notes to
         the  Custodial  Agent for the benefit of the holders of Separate  Notes
         that were  remarketed  and (2) the  remaining  portion of the proceeds,
         less those  proceeds  used to  purchase  the  Agent-purchased  Treasury
         Consideration,  to the Agent for  payment to the  Holders of the Equity
         Units that were remarketed, all determined on a pro rata basis, in each
         case, on or prior to the third Business Day following such  Remarketing
         Date  or  Subsequent  Remarketing  Date.  Holders  whose  Notes  are so
         remarketed  will not  otherwise be  responsible  for the payment of any
         Remarketing Fee in connection therewith.

                                      -39-
<PAGE>

                  (e) (i) If, in spite of using its commercially reasonable best
         efforts, the Remarketing Agent cannot establish the Reset Rate remarket
         the Notes included in the remarketing at a price equal to approximately
         100.25% of the  Remarketing  Value,  the  Remarketing  Agent will again
         attempt to establish the Reset Rate and remarket the Notes  included in
         the  remarketing  at a price  equal  to  approximately  100.25%  of the
         Remarketing  Value on each of the two  immediately  following  Business
         Days. If the  Remarketing  Agent cannot  remarket the Notes included in
         the  remarketing  at a price  equal  to  approximately  100.25%  of the
         Remarketing Value on either of those days, it will attempt to establish
         the Reset Rate and remarket the Notes included in the  remarketing at a
         price equal to approximately  100.25% of the Remarketing  Value on each
         of  the  three  Business  Days  immediately   preceding  [  ].  If  the
         Remarketing  Agent  cannot  establish  the Reset Rate and  remarket the
         Notes  included in the  remarketing  at a price equal to  approximately
         100.25% of the Remarketing Value either on any of the two Business Days
         immediately  following  the  Remarketing  Date  or on any of the  three
         Business Days immediately preceding [ ], the remarketing in each period
         will be deemed to gave failed (each,  a "Failed  Remarketing").  If the
         Remarketing  Agent  cannot  establish  the Reset Rate and  remarket the
         Notes  included in the  remarketing  at a price equal to  approximately
         100.25%  of the  Remarketing  Value on any of the three  Business  Days
         immediately  preceding [ ], the Remarketing  Agent will further attempt
         to  establish  the Reset Rate and  remarket  the Notes  included in the
         remarketing  at  a  price  equal  to   approximately   100.25%  of  the
         Remarketing  Value  on  each of the  three  Business  Days  immediately
         preceding [ ]. If, in spite of using its  commercially  reasonable best
         efforts,  the Remarketing  Agent fails to remarket the Notes underlying
         the Equity  Units at a price equal to  approximately  100.25%,  but not
         less than 100%, of the  Remarketing  Value in accordance with the terms
         of the Pledge  Agreement by 4:00 p.m., New York City time, on the third
         Business Day  immediately  preceding the Stock  Purchase  Date, a "Last
         Failed Remarketing" will be deemed to have occurred.

                       (ii) Within three  Business Days following the end of the
                  Last Failed  Remarketing,  the Remarketing  Agent shall return
                  any  Notes  delivered  to  it to  the  Collateral  Agent.  The
                  Collateral Agent, for the benefit of the Company, may exercise
                  its  rights as a secured  party with  respect  to such  Notes,
                  including those actions specified in Section 5.4(f) below, and
                  the Holders of Equity Units, by their acceptance of the Equity
                  Units shall be deemed to have  agreed to such  exercise by the
                  Collateral Agent in such case; provided, that if upon the Last
                  Failed Remarketing, the Collateral Agent delivers any Notes to
                  the Company in full  satisfaction  of the Holder's  obligation
                  under the related Forward Purchase Contracts,  any accumulated
                  and unpaid  interest on such Notes will become  payable by the
                  Company  to the Agent for  payment to the Holder of the Equity
                  Units to which such Notes relate. Such payment will be made by
                  the Company on or prior to 11:00 a.m.,  New York City time, on
                  the Stock  Purchase  Date in lawful money of the United States
                  by  certified  or   cashier's   check  or  wire   transfer  in
                  immediately  available  funds  payable to or upon the order of
                  the  Agent.  The  Company  will  publish  notice  by  means of
                  Bloomberg  and Reuters  newswires  of any  Remarketing  Period
                  during which no successful  remarketing occurred,  such notice
                  to be  published  not  later  than  the  fourth  Business  Day
                  following the end of such Remarketing Period. The Company will
                  cause a notice of the Last Failed  Remarketing to be published
                  on the  fourth  Business  Day  following  the date of the Last
                  Failed  Remarketing  in  a  daily  newspaper  in  the  English
                  language of general circulation in The City of New York, which
                  is expected to be The Wall Street Journal.

                                      -40-
<PAGE>

(f)      With respect to any Notes which  constitute  part of Equity Units which
         are subject to the Last 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 and Section
         5.4 (j) below, may, among other things, permit the Company to cause the
         Notes to be sold or to retain and cancel such Notes, in either case, in
         full  satisfaction  of  the  Holders'  obligations  under  the  Forward
         Purchase  Contracts  and the  Holders  of the  Equity  Units,  by their
         acceptance  of the Equity  Units shall be deemed to have agreed to such
         action by the Collateral Agent.

                  (g) A Holder of Equity Units may elect not to  participate  in
         the  remarketing  and retain the Notes  underlying such Equity Units by
         notifying the Agent of such election and  delivering  the specific U.S.
         Treasury security or securities  (including the CUSIP number and/or the
         principal terms of such security or securities) identified by the Agent
         that constitute the U.S. Treasury  securities  described in clauses (1)
         and (2) of the definition of Remarketing Value relating to the retained
         Notes (as if only such  Notes  were  being  remarketed)  (the  "Opt-out
         Treasury  Consideration") to the Agent not later than 10:00 a.m. on the
         fourth Business Day prior to the Remarketing Date (or, in the case of a
         Failed  Remarketing,  not later than 10:00 a.m. on the fourth  Business
         Day  immediately  prior to the  subsequent  Remarketing  Period).  Upon
         receipt  thereof by the Agent,  the Agent shall  deliver  such  Opt-out
         Treasury  Consideration  to the Collateral  Agent,  which will, for the
         benefit  of  the  Company,   thereupon  apply  such  Opt-out   Treasury
         Consideration  to secure such  Holder's  obligations  under the Forward
         Purchase Contracts. On the first Business Day immediately preceding the
         Remarketing  Date  (or,  in  the  case  of a  Failed  Remarketing,  the
         subsequent  Remarketing Period), the Collateral Agent,  pursuant to the
         terms of the Pledge  Agreement,  will deliver the Pledged Notes of such
         Holder  to  the  Agent.   Within  three  Business  Days  following  any
         Remarketing  Period,  (A) if the remarketing was successful,  the Agent
         shall  distribute such Notes to the Holders  thereof,  and (B) if there
         was a Failed  Remarketing,  the Agent  will  deliver  such Notes to the
         Collateral Agent, which will, for the benefit of the Company, thereupon
         apply such Notes to secure such Holders'  obligations under the Forward
         Purchase  Contracts  and  return  the  Opt-out  Treasury  Consideration
         delivered  by such Holders to such  Holders.  A Holder that does not so
         deliver the Opt-out Treasury  Consideration pursuant to this clause (g)
         shall be deemed to have elected to participate in the remarketing.

                  (h) Upon  the  maturity  of the  Pledged  Treasury  Securities
         underlying  the  Stripped   Equity  Units  and  the  Pledged   Treasury
         Consideration or Pledged Applicable  Ownership Interest in the Treasury
         Portfolio,  as the case may be,  underlying  the Equity  Units,  on the
         Stock Purchase Date, the Collateral Agent shall remit to the Company an
         amount equal to the aggregate  Purchase Price applicable to such Units,
         as payment  for the  Common  Stock  issuable  upon  settlement  thereof
         without  receiving any instructions  from the Holders of such Units. In
         the event the payments in respect of the Pledged  Treasury  Securities,
         Pledged Treasury Consideration or Pledged Applicable Ownership Interest
         in the  Treasury  Portfolio  underlying  a Unit  are in  excess  of the
         Purchase  Price  under the  Forward  Purchase  Contract  being  settled
         thereby,  the Collateral Agent will distribute such excess to the Agent
         for the benefit of the Holder of such Units when received.

                                      -41-
<PAGE>

                       (i) Any  distribution  to  Holders  of  excess  funds and
                  interest  described  in Section  5.4(c) and (d) above shall be
                  payable  at the  Office  of the  Agent in The City of New York
                  maintained for that purpose or, at the option of the Holder or
                  the holder of Separate Notes,  as applicable,  by check mailed
                  to the address of the Person entitled  thereto at such address
                  as it appears on the relevant  Register or by wire transfer to
                  an account  specified  by the Holder or the holder of Separate
                  Notes, as applicable.

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

                       (k) Notwithstanding  anything to the contrary herein, the
                  Company  shall not be  obligated  to issue any Common Stock in
                  respect  of  a  Forward  Purchase   Contract  or  deliver  any
                  certificates  therefor  to the  Holder of the  related  Equity
                  Units or Stripped Equity Units, as the case may be, unless the
                  Company shall have received  payment in full for the shares of
                  Common Stock to be purchased  thereunder by such Holder in the
                  manner herein set forth.

                       (l)  In  the  event  of  a  successful  remarketing,  the
                  interest rate on all of the outstanding  Notes (whether or not
                  included  in the  remarketing)  shall be adjusted to the Reset
                  Rate.

         Section 5.5       ISSUANCE OF SHARES OF COMMON STOCK.

         Unless a Termination Event shall have occurred on or prior to the Stock
Purchase  Date or an Early  Settlement or a Merger Early  Settlement  shall have
occurred with respect to all of the  outstanding  Units,  on the Stock  Purchase
Date,  upon its receipt of payment for the shares of Common  Stock  purchased by
the Holders  pursuant to the  provisions  of this Article and subject to Section
5.4, the Company shall issue and deposit with the Agent,  for the benefit of the
Holders  of the  Outstanding  Units,  one or  more  certificates  or  book-entry
interests representing the newly issued shares of Common Stock registered in the
name  of the  Agent  (or  its  nominee)  as  custodian  for  the  Holders  (such
certificates or book-entry  interests for shares of Common Stock,  together with
any dividends or distributions for which a record date and payment date for such
dividend or  distribution  has occurred  after the Stock  Purchase  Date,  being
hereinafter  referred to as the "Forward Purchase Contract  Settlement Fund") to
which the  Holders  are  entitled  hereunder.  Subject  to the  foregoing,  upon
surrender of a  Certificate  to the Agent on or after the Stock  Purchase  Date,
together with settlement  instructions thereon duly completed and executed,  the
Holder of such Certificate  shall be entitled to receive in exchange  therefor a
certificate or book-entry  interest  representing that number of whole shares of
Common Stock which such Holder is entitled to receive pursuant to the provisions
of this  Article V (after  taking  into  account all Equity  Units and  Stripped
Equity Units then held by such Holder)  together with cash in lieu of fractional
shares as provided  in Section  5.12 and any  dividends  or  distributions  with
respect  to such  shares  constituting  part of the  Forward  Purchase  Contract
Settlement  Fund,  but without any  interest  thereon,  and the  Certificate  so
surrendered shall forthwith be cancelled. Such shares shall be registered in the
name of the Holder or the  Holder's  designee  as  specified  in the  settlement

                                      -42-
<PAGE>

instructions  provided by the Holder to the Agent. If any shares of Common Stock
issued in respect  of a Forward  Purchase  Contract  are to be  registered  to a
Person  other  than the  Person in whose name the  Certificate  evidencing  such
Forward  Purchase  Contract is registered,  no such  registration  shall be made
unless the Person  requesting such  registration has paid any transfer and other
taxes required by reason of such  registration  in a name other than that of the
registered  Holder of such Certificate or has established to the satisfaction of
the Company that such tax either has been paid or is not payable.

        Section 5.6       ADJUSTMENT OF SETTLEMENT RATE.

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

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

                            (2) STOCK PURCHASE RIGHTS. In case the Company shall
                        issue rights,  options or warrants to all holders of its
                        Common Stock (not being available on an equivalent basis
                        to Holders of the Equity Units and Stripped Equity Units
                        upon  settlement  of  the  Forward  Purchase   Contracts
                        underlying  such Equity Units and Stripped Equity Units)
                        entitling  them to subscribe  for or purchase  shares of
                        Common  Stock at a price per share less than the Current
                        Market  Price per share of the Common  Stock on the date
                        fixed for the determination of stockholders  entitled to
                        receive  such  rights,  options or warrants  (other than
                        pursuant to a dividend  reinvestment,  share purchase or
                        similar plan),  the Settlement Rate or Early  Settlement
                        Rate,  as  applicable,  in  effect  at  the  opening  of
                        business  on the day  following  the date fixed for such
                        determination   shall  be  increased  by  dividing  such
                        Settlement Rate or Early Settlement Rate, as applicable,
                        by a  fraction,  the  numerator  of  which  shall be the
                        number  of shares of  Common  Stock  outstanding  at the
                        close  of   business   on  the  date   fixed   for  such
                        determination  plus the number of shares of Common Stock
                        which the  aggregate of the offering  price of the total

                                      -43-
<PAGE>

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

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

                            (4)  DEBT OR  ASSET  DISTRIBUTIONS.  (i) In case the
                        Company shall,  by dividend or otherwise,  distribute to
                        all  holders  of  its  Common  Stock  evidences  of  its
                        indebtedness  or  assets  (including   securities,   but
                        excluding   any  rights  or  warrants   referred  to  in
                        paragraph   (2)  of  this   Section,   any  dividend  or
                        distribution  paid exclusively in cash and any dividend,
                        shares  of  capital  stock of any  class or  series,  or
                        similar equity interests, of or relating to a subsidiary
                        or  other  business  unit  in  the  case  of a  Spin-Off
                        referred  to in  the  next  paragraph,  or  distribution
                        referred  to in  paragraph  (1) of  this  Section),  the
                        Settlement Rate or Early Settlement Rate, as applicable,
                        shall be  adjusted so that the same shall equal the rate
                        determined  by  dividing  the  Settlement  Rate or Early
                        Settlement  Rate, as applicable,  in effect  immediately
                        prior to the close of business on the date fixed for the
                        determination  of stockholders  entitled to receive such
                        distribution by a fraction, the numerator of which shall
                        be the  Current  Market  Price per  share of the  Common
                        Stock on the date fixed for such  determination less the
                        then fair market  value (as  determined  by the Board of
                        Directors,  whose  determination shall be conclusive and
                        described in a Board  Resolution)  of the portion of the
                        assets  or  evidences  of  indebtedness  so  distributed
                        applicable   to  one  share  of  Common  Stock  and  the
                        denominator  of which

                                      -44-
<PAGE>

                        shall be such  Current  Market  Price  per  share of the
                        Common  Stock,   such  adjustment  to  become  effective
                        immediately  prior to the opening of business on the day
                        following  the  date  fixed  for  the  determination  of
                        stockholders  entitled to receive such distribution.  In
                        any  case in which  this  paragraph  (4) is  applicable,
                        paragraph (2) of this Section shall not be applicable.

                       (ii) In the case of a Spin-Off,  the  Settlement  Rate or
                  Early  Settlement Rate, as applicable,  in effect  immediately
                  before  the close of  business  on the  record  date fixed for
                  determination   of  stockholders   entitled  to  receive  that
                  distribution  will be increased by multiplying  the Settlement
                  Rate or Early Settlement  Rate, as applicable,  by a fraction,
                  the  numerator of which is the Current  Market Price per share
                  of the Common  Stock plus the Fair Market Value of the portion
                  of those shares of Capital Stock or similar  equity  interests
                  so distributed applicable to one share of Common Stock and the
                  denominator  of which is the Current Market Price per share of
                  the Common Stock.  Any  adjustment to the  Settlement  Rate or
                  Early Settlement Rate under this paragraph 4(ii) will occur at
                  the earlier of (1) the tenth Trading Day from,  and including,
                  the  effective  date of the  Spin-Off  and (2) the date of the
                  securities being offered in the Initial Public Offering of the
                  Spin-Off,   if  that  Initial  Public   Offering  is  effected
                  simultaneously with the Spin-Off.

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

                                      -45-
<PAGE>

                       to  receive  such  distribution  by a  fraction  (A)  the
                       numerator  of which shall be equal to the Current  Market
                       Price per share of the Common Stock on the date fixed for
                       such  determination  less an amount equal to the quotient
                       of (x) the combined amount  distributed or payable in the
                       transactions  described  in clauses  (i),  (ii) and (iii)
                       above  and (y) the  number  of  shares  of  Common  Stock
                       outstanding  on such date for  determination  and (B) the
                       denominator of which shall be equal to the Current Market
                       Price  per  share of the  Common  Stock on such  date for
                       determination.

                            (2) TENDER OFFERS.  In case (i) a tender or exchange
                       offer  made  by  the  Company  or any  subsidiary  of the
                       Company for all or any portion of the Common  Stock shall
                       expire and such tender or exchange offer (as amended upon
                       the  expiration  thereof)  shall  require  the payment to
                       stockholders  (based on the acceptance (up to any maximum
                       specified  in the terms of the tender or exchange  offer)
                       of Purchased Shares) of an aggregate consideration having
                       a fair  market  value  (as  determined  by the  Board  of
                       Directors,  whose  determination  shall be conclusive and
                       described in a Board  Resolution) that combined  together
                       with (ii) the  aggregate of the cash plus the fair market
                       value (as  determined  by the Board of  Directors,  whose
                       determination  shall be  conclusive  and  described  in a
                       Board Resolution), as of the expiration of such tender or
                       exchange  offer, of  consideration  payable in respect of
                       any other tender or exchange offer, by the Company or any
                       subsidiary  of the  Company for all or any portion of the
                       Common Stock expiring within the 12 months  preceding the
                       expiration  of  such  tender  or  exchange  offer  and in
                       respect of which no adjustment  pursuant to paragraph (5)
                       of this Section or this  paragraph  (6) has been made and
                       (iii) the aggregate  amount of any  distributions  to all
                       holders of the Company's Common Stock made exclusively in
                       cash within the 12 months  preceding  the  expiration  of
                       such tender or exchange  offer and in respect of which no
                       adjustment  pursuant to paragraph  (5) of this Section or
                       this  paragraph  (6) has been  made,  exceeds  15% of the
                       product  of the  Current  Market  Price  per share of the
                       Common Stock as of the last time (the "Expiration  Time")
                       tenders  could have been made  pursuant to such tender or
                       exchange offer (as it may be amended) times the number of
                       shares  of  Common  Stock   outstanding   (including  any
                       tendered  shares) at the  Expiration  Time,  then, and in
                       each  such  case,  immediately  prior to the  opening  of
                       business  on the day  after  the  date of the  Expiration
                       Time, the Settlement  Rate or Early  Settlement  Rate, as
                       applicable,  shall be  adjusted  so that  the same  shall
                       equal the rate determined by dividing the Settlement Rate
                       or Early  Settlement  Rate,  as  applicable,  immediately
                       prior  to  the  close  of  business  on the  date  of the
                       Expiration  Time by a fraction (A) the numerator of which
                       shall  be  equal to (x) the  product  of (I) the  Current
                       Market Price per share of the Common Stock on the date of
                       the  Expiration  Time and (II) the  number  of  shares of
                       Common Stock outstanding  (including any tendered shares)
                       at the  Expiration  Time less (y) the amount of cash plus
                       the fair market value  (determined  as  aforesaid) of the
                       aggregate  consideration payable to stockholders based on
                       the transactions described in clauses (i), (ii) and (iii)

                                      -46-
<PAGE>

                       above (assuming in the case of clause (i) the acceptance,
                       up to any maximum specified in the terms of the tender or
                       exchange  offer,  of  Purchased  Shares),   and  (B)  the
                       denominator of which shall be equal to the product of (x)
                       the Current Market Price per share of the Common Stock as
                       of the  Expiration  Time and (y) the  number of shares of
                       Common Stock outstanding  (including any tendered shares)
                       as of the  Expiration  Time less the number of all shares
                       validly  tendered and not withdrawn as of the  Expiration
                       Time  (the  shares  deemed  so  accepted,  up to any such
                       maximum, being referred to as the "Purchased Shares").

                            (3) RECLASSIFICATION. The reclassification of Common
                       Stock into  securities  including  securities  other than
                       Common  Stock  (other  than any  reclassification  upon a
                       Reorganization  Event to which  Section  5.6(b)  applies)
                       shall be deemed to  involve  (i) a  distribution  of such
                       securities  other  than  Common  Stock to all  holders of
                       Common   Stock   (and   the   effective   date   of  such
                       reclassification  shall be deemed  to be "the date  fixed
                       for the determination of stockholders entitled to receive
                       such   distribution"   and  the  "date   fixed  for  such
                       determination"  within the  meaning of  paragraph  (4) of
                       this  Section),   and  (ii)  a   subdivision,   split  or
                       combination,  as the case may be, of the number of shares
                       of Common  Stock  outstanding  immediately  prior to such
                       reclassification  into the  number  of  shares  of Common
                       Stock   outstanding   immediately   thereafter  (and  the
                       effective date of such  reclassification  shall be deemed
                       to be "the  day  upon  which  such  subdivision  or split
                       becomes   effective"   or  "the  day  upon   which   such
                       combination  becomes  effective," as the case may be, and
                       "the  day  upon   which   such   subdivision,   split  or
                       combination  becomes  effective"  within  the  meaning of
                       paragraph (3) of this Section).

                            (4) "CURRENT  MARKET  PRICE".  The  "Current  Market
                       Price"  of the  Common  Stock  means  (a) on any  day the
                       average of the Sales Prices for the 5 consecutive Trading
                       Days  preceding  the earlier of the day preceding the day
                       in question and the day before the "ex date" with respect
                       to the issuance or  distribution  requiring  computation,
                       (b)  in  the  case  of  any  Spin-Off  that  is  effected
                       simultaneously  with an Initial  Public  Offering  of the
                       securities  being  distributed in the Spin-Off,  the Sale
                       Price of the Common Stock on the Trading Day on which the
                       Initial Public  Offering  price of the  securities  being
                       distributed in the Spin-Off is determined, and (c) in the
                       case of any  other  Spin-Off,  the  average  of the  Sale
                       Prices of the Common Stock over the first 10 Trading Days
                       after the effective date of such  Spin-Off.  For purposes
                       of this  paragraph,  the term "ex  date,"  when used with
                       respect to any issuance or  distribution,  shall mean the
                       first date on which the Common Stock  trades  regular way
                       on  the  relevant  exchange  or in  the  relevant  market
                       without   the  right  to   receive   such   issuance   or
                       distribution.

                            (5) CALCULATION OF  ADJUSTMENTS.  All adjustments to
                       the  Settlement  Rate  or  Early   Settlement   Rate,  as
                       applicable, shall be calculated to the nearest 1/10,000th
                       of a share of Common  Stock (or if there is not a nearest

                                      -47-
<PAGE>

                       1/10,000th  of a share to the next lower  1/10,000th of a
                       share).  No  adjustment in the  Settlement  Rate or Early
                       Settlement Rate, as applicable,  shall be required unless
                       such adjustment would require

                            (6) an  increase or decrease of at least one percent
                       therein;  provided,  that any adjustments which by reason
                       of this subparagraph are not required to be made shall be
                       carried  forward and taken into account in any subsequent
                       adjustment.  If an adjustment  is made to the  Settlement
                       Rate or Early Settlement Rate, as applicable, pursuant to
                       paragraph  (1),  (2),  (3), (4), (5), (6), (7) or (10) of
                       this Section 5.6(a),  an adjustment shall also be made to
                       the Applicable  Market Value solely to determine which of
                       clauses  (i),   (ii)  or  (iii)  of  the   definition  of
                       Settlement Rate or Early  Settlement Rate, as applicable,
                       in Section  5.1(a) will apply on the Stock Purchase Date.
                       Such   adjustment   shall  be  made  by  multiplying  the
                       Applicable  Market Value by a fraction,  the numerator of
                       which shall be the  Settlement  Rate or Early  Settlement
                       Rate, as applicable,  immediately  after such  adjustment
                       pursuant to paragraph  (1),  (2), (3), (4), (5), (6), (7)
                       or (10) of this  Section  5.6(a) and the  denominator  of
                       which shall be the  Settlement  Rate or Early  Settlement
                       Rate, as applicable,  immediately before such adjustment;
                       provided,  that if such adjustment to the Settlement Rate
                       or Early Settlement  Rate, as applicable,  is required to
                       be made  pursuant to the  occurrence of any of the events
                       contemplated by paragraph (1), (2), (3), (4), (5), (7) or
                       (10) of this Section  5.6(a) during the period taken into
                       consideration   for  determining  the  Applicable  Market
                       Value,  appropriate  and customary  adjustments  shall be
                       made to the Settlement Rate or Early  Settlement Rate, as
                       applicable.

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

                  (b)   ADJUSTMENT   FOR   CONSOLIDATION,    MERGER   OR   OTHER
         REORGANIZATION EVENT.

                    In the event of

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

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

                                      -48-
<PAGE>

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

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

each share of Common Stock covered by each Forward  Purchase  Contract forming a
part of a Equity Units or Stripped Equity Units, as the case may be, immediately
prior to such Reorganization  Event shall, after such  Reorganization  Event, be
converted for purposes of the Forward Purchase Contract into the kind and amount
of securities,  cash and other property receivable in such Reorganization  Event
(without  any  interest   thereon,   and  without  any  right  to  dividends  or
distributions  thereon  which  have a record  date  that is  prior to the  Stock
Purchase Date) per share of Common Stock by a holder of Common Stock that (i) is
not a Person  with which the  Company  consolidated  or into  which the  Company
merged or which  merged into the  Company or to which such sale or transfer  was
made,  as the case may be (any  such  Person,  a  "Constituent  Person"),  or an
Affiliate  of a  Constituent  Person to the  extent  such  Reorganization  Event
provides  for  different  treatment of Common  Stock held by  Affiliates  of the
Company and non-Affiliates,  and (ii) failed to exercise his rights of election,
if any,  as to the  kind or  amount  of  securities,  cash  and  other  property
receivable upon such  Reorganization  Event (provided that if the kind or amount
of securities, cash and other property receivable upon such Reorganization Event
is not the same for each share of Common  Stock held  immediately  prior to such
Reorganization  Event by other than a Constituent Person or an Affiliate thereof
and in respect of which such  rights of election  shall not have been  exercised
("Non-electing Share"), then for the purpose of this Section the kind and amount
of securities, cash and other property receivable upon such Reorganization Event
by each  Non-electing  Share  shall  be  deemed  to be the kind  and  amount  so
receivable per share by a plurality of the  Non-electing  Shares).  On the Stock
Purchase Date,  the Settlement  Rate then in effect will be applied to the value
on the Stock Purchase Date of such  securities,  cash or other property.  In the
event of such a Reorganization  Event, the Person formed by such  consolidation,
merger or exchange or the Person which acquires the assets of the Company or, in
the event of a  liquidation  or  dissolution  of the  Company,  the Company or a
liquidating trust created in connection therewith,  shall execute and deliver to
the Agent an agreement  supplemental  hereto  providing  that the Holder of each
Outstanding  Units shall have the rights  provided  by this  Section  5.6.  Such
supplemental   agreement  shall  provide  for  adjustments   which,  for  events
subsequent to the effective  date of such  supplemental  agreement,  shall be as
nearly equivalent as may be practicable to the adjustments  provided for in this
Section.  The  above  provisions  of  this  Section  shall  similarly  apply  to
successive Reorganization Events.

         Section 5.7       NOTICE OF ADJUSTMENTS AND CERTAIN OTHER EVENTS.

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

                       (i)  forthwith  compute  the  Settlement  Rate  or  Early
                  Settlement  Rate, as  applicable,  and the  Applicable  Market
                  Value in accordance  with Section 5.6 and prepare and transmit
                  to the  Agent  an  Officer's  Certificate  setting  forth  the
                  Settlement Rate and the Applicable Market Value, the method of
                  calculation

                                      -49-
<PAGE>

                  thereof in reasonable  detail,  and the facts  requiring  such
                  adjustment and upon which such adjustment is based; and

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

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

         Section 5.8       TERMINATION EVENT; NOTICE.

         The Forward  Purchase  Contracts and all  obligations and rights of the
Company and the Holders  thereunder,  including  the rights and  obligations  of
Holders to purchase Common Stock, shall immediately and automatically terminate,
without the  necessity  of any notice or action by any Holder,  the Agent or the
Company,  if, on or prior to the Stock Purchase Date, a Termination  Event shall
have occurred.  Upon and after the occurrence of a Termination Event, the Equity
Units  shall  thereafter  represent  the  right  to  receive  the  Notes  or the
appropriate  Treasury  Consideration  or  Applicable  Ownership  Interest in the
Treasury Portfolio, as the case may be, forming a part of such Equity Units, and
the Stripped  Equity Units shall  thereafter  represent the right to receive the
Treasury  Securities  forming a part of such Stripped Equity Units, in each case
in accordance with the provisions of Section 4.3 of the Pledge  Agreement.  Upon
the  occurrence of a  Termination  Event,  the Company shall  promptly but in no
event later than two Business Days  thereafter give written notice to the Agent,
the Collateral  Agent and to the Holders,  at their  addresses as they appear in
the applicable Register.

         Section 5.9       EARLY SETTLEMENT.

                  (a) Subject to and upon compliance with the provisions of this
         Section 5.7,  Forward  Purchase  Contracts  underlying  Equity Units or
         Stripped Equity Units having an

                                      -50-
<PAGE>

         aggregate  Stated  Amount  equal  to  $1,000  or an  integral  multiple
         thereof,  may, at the option of the Holder  thereof,  be settled  early
         ("Early  Settlement") on or prior to 10:00 a.m. on the seventh Business
         Day immediately preceding the Stock Purchase Date. In order to exercise
         the  right to effect  Early  Settlement  with  respect  to any  Forward
         Purchase  Contracts,  the  Holder  of the  Certificate  evidencing  the
         related  Equity  Units or Stripped  Equity  Units,  as the case may be,
         shall  deliver such  Certificate  to the Agent at the  Corporate  Trust
         Office duly  endorsed  for transfer to the Company or in blank with the
         form of Election to Settle Early on the reverse  thereof duly completed
         and  accompanied  by  payment  payable to the  Company  in  immediately
         available funds in an amount (the "Early  Settlement  Amount") equal to
         (A) the  product  of (i) the  Stated  Amount  of such  Equity  Units or
         Stripped  Equity  Units,  as the  case may be,  multiplied  by (ii) the
         number of Forward  Purchase  Contracts with respect to which the Holder
         has elected to effect Early  Settlement,  plus (B) if such  delivery is
         made with respect to any Forward  Purchase  Contracts during the period
         from the  close of  business  on any  Record  Date next  preceding  any
         Payment Date to the opening of business on such Payment Date, an amount
         equal to the  Contract  Adjustment  Payments,  if any,  payable on such
         Payment Date with respect to such Forward Purchase Contracts;  provided
         that no  payment  shall be  required  pursuant  to  clause  (B) of this
         sentence  if the  Company  shall  have  elected  to defer the  Contract
         Adjustment  Payments  that would  otherwise  be payable on such Payment
         Date and further  provided  that,  at that time,  if so required by the
         United States federal  securities laws, a registration  statement is in
         effect and a prospectus is available  covering the shares of the Common
         Stock of the Company to be delivered in respect of the Forward Purchase
         Contracts  being  settled.   Except  as  provided  in  the  immediately
         preceding  sentence  and  subject  to  Section  5.2(d),  no  payment or
         adjustment  shall be made upon Early Settlement of any Forward Purchase
         Contract on any Contract  Adjustment  Payments  accrued on such Forward
         Purchase  Contract or on account of any  dividends  on the Common Stock
         issued upon such Early  Settlement.  If the foregoing  requirements are
         first satisfied with respect to Forward Purchase  Contracts  underlying
         any Equity Units or Stripped  Equity  Units,  as the case may be, at or
         prior to 5:00 p.m.,  New York City time,  on a Business  Day,  such day
         shall be the "Early  Settlement Date" with respect to such Equity Units
         or Stripped Equity Units, as the case may be, and if such  requirements
         are first  satisfied after 5:00 p.m., New York City time, on a Business
         Day or on a day that is not a Business Day, the "Early Settlement Date"
         with respect to such Equity Units or Stripped Equity Units, as the case
         may be, shall be the next succeeding Business Day.

                  (b) Upon Early Settlement of any Forward Purchase  Contract by
         the Holder of the related Equity Units or Stripped Equity Units, as the
         case may be, the Company shall issue,  and the Holder shall be entitled
         to  receive,  [ ] shares of Common  Stock on  account  of such  Forward
         Purchase Contract (the "Early Settlement  Rate").  The Early Settlement
         Rate shall be  adjusted  in the same manner and at the same time as the
         Settlement  Rate is adjusted.  As promptly as  practicable  after Early
         Settlement  of  Forward  Purchase  Contracts  in  accordance  with  the
         provisions  of this  Section  5.9,  the  Company  shall issue and shall
         deliver to the Agent at the  Corporate  Trust Office a  certificate  or
         certificates  or book entry  interest  for the full number of shares of
         Common Stock issuable upon such Early Settlement  together with payment
         in lieu of any fraction of a share, as provided in Section 5.12.

                                      -51-
<PAGE>

                  (c) No later than the third  Business Day after the applicable
         Early  Settlement Date the Company shall cause (i) the shares of Common
         Stock issuable upon Early Settlement of Forward  Purchase  Contracts to
         be issued and delivered,  and (ii) the related Pledged Notes or Pledged
         Treasury  Consideration or Pledged Applicable Ownership Interest in the
         Treasury Portfolio, in the case of Equity Units, or the related Pledged
         Treasury  Securities,  in the  case of  Stripped  Equity  Units,  to be
         released from the Pledge by the Collateral  Agent and  transferred,  in
         each  case,  to the Agent for  delivery  to the  Holder  thereof or the
         Holder's designee.

                  (d) Upon Early Settlement of any Forward  Purchase  Contracts,
         and  subject to receipt of shares of Common  Stock from the Company and
         the Pledged Notes, Pledged Treasury  Consideration,  Pledged Applicable
         Ownership  Interest  in the  Treasury  Portfolio,  or Pledged  Treasury
         Securities,  as  the  case  may  be,  from  the  Collateral  Agent,  as
         applicable,  the  Agent  shall,  in  accordance  with the  instructions
         provided by the Holder  thereof on the  applicable  form of Election to
         Settle Early on the reverse of the  Certificate  evidencing the related
         Equity  Units or  Stripped  Equity  Units,  as the  case  may be,,  (i)
         transfer   to  the  Holder  the   Pledged   Notes,   Pledged   Treasury
         Consideration,  Pledged  Applicable  Ownership Interest in the Treasury
         Portfolio, or Pledged Treasury Securities,  as the case may be, forming
         a part of such Equity Units or Stripped  Equity Units,  as the case may
         be,, and (ii) deliver to the Holder a certificate  or  certificates  or
         book-entry  interest  for the full  number of  shares  of Common  Stock
         issuable  upon such Early  Settlement  together with payment in lieu of
         any fraction of a share, as provided in Section 5.11.

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

         Section 5.10      EARLY SETTLEMENT UPON MERGER.

                  (a) In the event of a merger or  consolidation  of the Company
         of the type  described  in clause  (1) of  Section  5.6(b) in which the
         Common  Stock   outstanding   immediately   prior  to  such  merger  or
         consolidation is exchanged for consideration consisting of at least 30%
         cash or cash  equivalents  (any such event a "Cash  Merger"),  then the
         Company (or the successor to the Company  hereunder)  shall be required
         to offer the Holder of each Equity Units or Stripped  Equity Units,  as
         the case may be,  the right to settle  the  Forward  Purchase  Contract
         underlying  such Equity Units or Stripped Equity Units, as the case may
         be, prior to the Stock  Purchase Date ("Merger  Early  Settlement")  as
         provided  herein.  On or  before  the  fifth  Business  Day  after  the
         consummation  of a Cash  Merger,  the  Company  or, at the  request and
         expense of the Company, the Agent, shall give all Holders notice of the
         occurrence  of the  Cash  Merger  and  of the  right  of  Merger  Early
         Settlement arising as a result thereof.  The Company shall also deliver
         a copy of such notice to the Agent and the Collateral Agent.

                   Each such notice shall contain:

                                      -52-
<PAGE>

                       (i) the  date,  which  shall be not less than 20 nor more
                  than 30 calendar days after the date of such notice,  on which
                  the Merger  Early  Settlement  will be effected  (the  "Merger
                  Early Settlement Date");

                       (ii) the  date,  which  shall be on or one  Business  Day
                  prior to the Merger Early Settlement Date, by which the Merger
                  Early Settlement right must be exercised;

                       (iii) the  Settlement  Rate in effect as a result of such
                  Cash  Merger and the kind and amount of  securities,  cash and
                  other  property  receivable  by the Holder upon  settlement of
                  each Forward Purchase Contract pursuant to Section 5.6(b);

                       (iv) a  statement  to the effect that all or a portion of
                  the Purchase Price payable by the Holder to settle the Forward
                  Purchase Contract will be offset against the amount of cash so
                  receivable  upon  exercise  of  Merger  Early  Settlement,  as
                  applicable; and

                       (v) the instructions a Holder must follow to exercise the
                  Merger Early Settlement right.

                  (b) To  exercise a Merger  Early  Settlement  right,  a Holder
         shall deliver to the Agent at the  Corporate  Trust Office on or before
         5:00 p.m.,  New York City time on the date  specified in the notice the
         Certificate(s) evidencing the Equity Units or Stripped Equity Units, as
         the case may be,  with  respect  to which the Merger  Early  Settlement
         right is being  exercised  duly endorsed for transfer to the Company or
         in blank  with the form of  Election  to  Settle  Early on the  reverse
         thereof  duly  completed  and  accompanied  by  payment  payable to the
         Company in immediately  available funds in an amount equal to the Early
         Settlement  Amount  less the  amount  of cash that  otherwise  would be
         deliverable  by the Company or its  successor  upon  settlement  of the
         Forward  Purchase  Contract in lieu of Common Stock pursuant to Section
         5.4(b) and as described  in the notice to Holders  (the  "Merger  Early
         Settlement Amount").

                  (c) On the Merger Early  Settlement  Date,  the Company  shall
         deliver or cause to be delivered (i) the net cash, securities and other
         property  to be  received  by  such  exercising  Holder,  equal  to the
         Settlement Rate as adjusted  pursuant to Section 5.6, in respect of the
         number of  Forward  Purchase  Contracts  for which  such  Merger  Early
         Settlement  right was  exercised,  and (ii) the related  Pledged Notes,
         Pledged Treasury Consideration or Pledged Applicable Ownership Interest
         in the  Treasury  Portfolio,  in the case of Equity  Units,  or Pledged
         Treasury  Securities,  in the  case of  Stripped  Equity  Units,  to be
         released from the Pledge by the Collateral  Agent and  transferred,  in
         each  case,  to the Agent for  delivery  to the  Holder  thereof or its
         designee.  In the  event a  Merger  Early  Settlement  right  shall  be
         exercised  by a  Holder  in  accordance  with  the  terms  hereof,  all
         references  herein to the Stock  Purchase Date shall be deemed to refer
         to such Merger Early Settlement Date.

                  (d) Upon  Merger  Early  Settlement  of any  Forward  Purchase
         Contracts, and subject to receipt of such net cash, securities or other
         property  from the  Company  and the Pledged  Notes,  Pledged  Treasury
         Consideration,  Pledged  Applicable  Ownership Interest in the

                                      -53-
<PAGE>

         Treasury Portfolio or Pledged Treasury Securities,  as the case may be,
         from  the  Collateral  Agent,  as  applicable,   the  Agent  shall,  in
         accordance with the instructions  provided by the Holder thereof on the
         applicable  form of  Election  to Settle  Early on the  reverse  of the
         Certificate  evidencing  the related  Equity  Units or Stripped  Equity
         Units,  as the case may be,,  (i)  transfer  to the Holder the  Pledged
         Notes,  Pledged Treasury  Consideration,  Pledged Applicable  Ownership
         Interest in the Treasury Portfolio, or Pledged Treasury Securities,  as
         the case may be, forming a part of such Equity Units or Stripped Equity
         Units,  as the case may be,,  and (ii)  deliver to the Holder  such net
         cash,  securities  or other  property  issuable  upon such Merger Early
         Settlement together with payment in lieu of any fraction of a share, as
         provided in Section 5.12.

                  (e) In the event that Merger Early Settlement is effected with
         respect  to Forward  Purchase  Contracts  underlying  less than all the
         Equity Units or Stripped Equity Units, as the case may be, evidenced by
         a  Certificate,  upon such Merger Early  Settlement the Company (or the
         successor to the Company  hereunder)  shall execute and the Agent shall
         authenticate,  execute on behalf of the Holder  thereof  and deliver to
         the Holder  thereof,  at the  expense  of the  Company,  a  Certificate
         evidencing the Equity Units or Stripped  Equity Units,  as the case may
         be, as to which Merger Early Settlement was not effected.

         Section 5.11      CHARGES AND TAXES.

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

         Section 5.12      NO FRACTIONAL SHARES.

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

                                      -54-
<PAGE>

Agent  from time to time with  sufficient  funds to permit the Agent to make all
cash payments required by this Section 5.12 in a timely manner.

         Section 5.13      TAX TREATMENT.

         The Company  covenants and agrees and each Holder,  by  purchasing  the
Units  agrees,  to  (i)  treat  a  Holder's  acquisition  of  the  Units  as the
acquisition of the Note and Forward Purchase Contract constituting the Units and
(ii) treat each Holder as the owner for all tax  purposes of the related  Notes,
Treasury Consideration,  Applicable Ownership Interest in the Treasury Portfolio
or Treasury Securities, as the case may be.

                                  ARTICLE VI.
                                    REMEDIES

         Section 6.1    UNCONDITIONAL RIGHT OF HOLDERS TO PURCHASE COMMON STOCK.

                  (a) The Holder of any Equity Units or Stripped  Equity  Units,
         as the  case  may be  shall  have the  right,  which  is  absolute  and
         unconditional,  subject to the right of the  Company  to defer  payment
         thereof  pursuant to Section 5.3, and to the forfeiture of any Deferred
         Contract  Adjustment Payments upon Early Settlement pursuant to Section
         5.9(a) or upon Merger Early Settlement pursuant to Section 5.10 or upon
         the  occurrence  of a  Termination  Event,  to receive  payment of each
         installment of the Contract Adjustment  Payments,  if any, with respect
         to the Purchase  Contract  constituting  a part of such Equity Units or
         Stripped  Equity Units,  as the case may be, on the respective  Payment
         Date for such Equity Units or Stripped  Equity  Units,  as the case may
         be, and

                  (b) Subject to Section 5.6, the Holder of any Units shall have
         the right,  which is absolute  and  unconditional,  to purchase  Common
         Stock pursuant to the Forward Purchase Contract  constituting a part of
         such Units and to institute suit for the  enforcement of any such right
         to purchase Common Stock,  and such right shall not be impaired without
         the consent of such Holder.

         Section 6.2       RESTORATION OF RIGHTS AND REMEDIES.

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

         Section 6.3       RIGHTS AND REMEDIES CUMULATIVE.

         Except as otherwise provided with respect to the replacement or payment
of mutilated,  destroyed,  lost or stolen  Certificates in Section  3.10(f),  no
right or remedy herein  conferred upon or reserved to the Holders is intended to
be exclusive of any other right or remedy,  and every right and remedy shall, to
the extent  permitted by law, be cumulative and in addition to every other right
and remedy given  hereunder or now or hereafter  existing at law or in equity or
otherwise.  The

                                      -55-
<PAGE>

assertion or employment of any right or remedy  hereunder,  or otherwise,  shall
not prevent the  concurrent  assertion or  employment  of any other  appropriate
right or remedy.

         Section 6.4       DELAY OR OMISSION NOT WAIVER.

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

         Section 6.5       UNDERTAKING FOR COSTS.

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

         Section 6.6       WAIVER OF STAY OR EXTENSION LAWS.

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

                                  ARTICLE VII.
                                    THE AGENT

         Section 7.1       CERTAIN DUTIES, RIGHTS AND IMMUNITIES.

                  (a) The Agent shall act as agent and  attorney-in-fact for the
         Holders of the Equity Units and Stripped  Equity Units  hereunder  with
         such  powers  as are  specifically  vested in the Agent by the terms of
         this Agreement,  the Pledge Agreement,  the Remarketing Agreement,  the
         Notes and the Equity Units and Stripped Equity Units, and any documents

                                      -56-
<PAGE>

         evidencing  them or  related  thereto  (the  "Transaction  Documents"),
         together with such other powers as are reasonably  incidental  thereto.
         The Agent:

                       (1) shall have no duties or responsibilities except those
                  expressly  set  forth  in  the  Transaction  Documents  and no
                  implied  covenants or  obligations  shall be inferred from any
                  Transaction  Documents  against the Agent, nor shall the Agent
                  be bound  by the  provisions  of any  agreement  by any  party
                  hereto beyond the specific terms hereof;

                       (2) shall be entitled  conclusively  to rely upon (x) any
                  certification,  order,  judgment,  opinion,  notice  or  other
                  communication (including,  without limitation,  any thereof by
                  telephone  or  facsimile)  reasonably  believed  by  it  to be
                  genuine  and  correct and to have been signed or sent by or on
                  behalf of the proper Person or Persons (without being required
                  to determine the correctness of any fact stated therein),  (y)
                  the  truth  of  the  statements  and  the  correctness  of the
                  opinions  expressed  therein and (z) advice and  statements of
                  legal counsel and other experts selected by the Agent;

                       (3) as to any matters not  expressly  provided for by any
                  Transaction Document, shall in all cases be fully protected in
                  acting, or in refraining from acting,  hereunder or thereunder
                  in accordance  with  instructions  given by the Company or the
                  Holders in accordance with the Transaction Documents;

                       (4) shall not be responsible  for any recitals  contained
                  in any  Transaction  Document,  or in any certificate or other
                  document  referred  to or  provided  for in, or received by it
                  under,  any  Transaction  Document  or  the  Equity  Units  or
                  Stripped   Equity   Units,   or  for  the   value,   validity,
                  effectiveness,  genuineness,  enforceability or sufficiency of
                  any Transaction  Document (other than as against the Agent) or
                  the  Equity  Units  or  Stripped  Equity  Units  or any  other
                  document  referred to or provided for herein or therein or for
                  any  failure by the  Company,  any Holder or any other  Person
                  (except the Agent) to perform any of its obligations hereunder
                  or  thereunder or for the  perfection,  priority or, except as
                  expressly required hereby, existence,  validity, perfection or
                  maintenance of any security  interest created under the Pledge
                  Agreement, or for the use or application by the Company of the
                  proceeds in respect of the Forward Purchase Contracts;

                       (5) shall not be  required  to  initiate  or conduct  any
                  litigation or collection proceedings hereunder;

                       (6)  shall not be  responsible  for any  action  taken or
                  omitted  to be  taken  by it  hereunder  or  under  any  other
                  document or  instrument  referred to or provided for herein or
                  in connection herewith or therewith,  except for its own gross
                  negligence, bad faith or willful misconduct; and

                                      -57-
<PAGE>

                       (7)  shall  not be  required  to  advise  any party as to
                  selling or retaining,  or taking or refraining from taking any
                  action with  respect to, the Equity  Units or Stripped  Equity
                  Units or other rights under any Transaction Document.

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

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

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

                       (3) in no event  shall the Agent be required to expend or
                  risk its own funds or otherwise incur any financial  liability
                  in the performance of any of its duties hereunder.

                  (c) In no event shall the Agent or its officers,  employees or
         agents be liable for any  special,  indirect,  individual,  punitive or
         consequential  loss or  damages,  lost  profits  or  loss of  business,
         arising in connection with any Transaction Document, whether or not the
         likelihood  of  such  loss  or  damage  was  known  to the  Agent,  and
         regardless of the form of action.

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

                  (e) The Agent is  authorized to execute and deliver the Pledge
         Agreement and the Remarketing  Agreement and any supplement  thereto in
         its  capacity  as Agent.  The  Agent  shall be  entitled  to all of the
         rights,  privileges,  immunities  and  indemnities  contained  in  this
         Agreement  with  respect to any duties of the Agent  under,  or actions
         taken,  omitted to be taken or  suffered  by the Agent  pursuant to the
         Pledge Agreement.

                  (f) The  Agent  shall  have no  liability  whatsoever  for the
         action or  inaction of any  Clearing  Agency or any  book-entry  system
         thereof. In no event shall any Clearing Agency or any book-entry system
         thereof be deemed an agent or subcustodian of the Agent.

                  (g) The Agent  shall  not be  responsible  or  liable  for any
         failure  or delay  in the  performance  of its  obligations  under  any
         Transaction Document arising out of or caused,  directly or indirectly,
         by  circumstances  beyond its reasonable  control,  including,  without
         limitation, acts of God; acts of terrorism; earthquakes; fires; floods;
         wars;  civil or  military  disturbances;  sabotage;  epidemics;  riots;
         interruptions, loss or malfunctions of utilities, computer (hardware or
         software) or communications service; accidents; labor disputes; acts of
         civil or military  authority;  governmental  actions;  or  inability to
         obtain labor, material, equipment or transportation.

                                      -58-
<PAGE>

         Section 7.2       NOTICE OF DEFAULT.

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

         Section 7.3       CERTAIN RIGHTS OF AGENT.

         Subject to the provisions of Section 7.1:

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

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

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

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

                  (e) the  Agent  shall  not be bound to make any  investigation
         into the  facts  or  matters  stated  in any  resolution,  certificate,
         statement,  instrument,  opinion,  report, notice, request,  direction,
         consent,  order, bond, debenture,  note, other evidence of indebtedness
         or other paper or document, but the Agent, in its discretion,  may make
         reasonable  further inquiry or investigation into such facts or matters
         related to the  execution,  delivery  and  performance  of the  Forward
         Purchase Contracts as it may see fit, and, if the Agent shall determine
         to make such  further  inquiry  or  investigation,  it shall be given a
         reasonable  opportunity  to examine the books,  records and premises of
         the Company, personally or by agent or attorney;

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

                                      -59-
<PAGE>

                  (g)  the  rights,  privileges,   protections,  immunities  and
         benefits given to the Agent,  including,  but not limited to, its right
         to be  indemnified,  are extended to, and shall be enforceable  by, the
         Agent in each of its capacities hereunder, and to each Agent, custodian
         and other person employed to act hereunder;

                  (h) the  Agent  shall not be  charged  with  knowledge  of any
         default by the Company  hereunder  unless a Responsible  Officer of the
         Agent shall have  received at the  Corporate  Trust Office of the Agent
         written notice of such default; and

                  (i) the permissive right of the Agent to do things  enumerated
         in this Agreement shall not be construed as a duty.

         Section 7.4       NOT RESPONSIBLE FOR RECITALS, ETC.

         The recitals contained herein and in the Certificates shall be taken as
the statements of the Company and the Agent assumes no responsibility  for their
accuracy.  The Agent makes no  representations as to the validity or sufficiency
of either this Agreement or of the Equity Units or Stripped  Equity Units, or of
the Pledge  Agreement or the Pledge.  The Agent shall not be accountable for the
use or application by the Company of the proceeds in respect of the Equity Units
or Stripped  Equity  Units or the Forward  Purchase  Contracts  and shall not be
responsible  for  the  perfection,  priority  or  maintenance  of  any  security
interests created or intended to be created under the Pledge Agreement.

         Section 7.5       MAY HOLD EQUITY UNITS AND STRIPPED EQUITY UNITS AND
                           OTHER DEALINGS.

         Any  Registrar or any other agent of the Company,  or the Agent and its
Affiliates,  in their individual or any other capacity,  may become the owner or
pledgee of Equity Units or Stripped  Equity  Units,  as the case may be, and may
otherwise deal with the Company,  the Collateral  Agent or any other Person with
the same rights it would have if it were not  Registrar or such other agent,  or
the Agent.  The Agent and its Affiliates may (without having to account therefor
to the Company or any Holder of Equity Units or Stripped  Equity Units or holder
of Separate Notes) accept  deposits from, lend money to, make other  investments
in and generally engage in any kind of banking, trust or other business with the
Company,  any Holder of Equity Units or Stripped  Equity Units and any holder of
Separate Notes (and any of their respective subsidiaries or Affiliates) as if it
were not acting as the Agent and the Agent and its  Affiliates  may accept  fees
and other consideration from the Company, any Holder of Equity Units or Stripped
Equity Units or any holder of Separate  Notes without  having to account for the
same to any such Person.

         Section 7.6       MONEY HELD IN CUSTODY.

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

         Section 7.7       COMPENSATION AND REIMBURSEMENT.

         The Company agrees:

                                      -60-
<PAGE>

                  (a) to pay to the Agent from time to time compensation for all
         services rendered by it hereunder or under the Transaction Documents as
         shall be agreed in writing between the Company and the Agent;

                  (b) to reimburse the Agent upon its request for all reasonable
         expenses,  disbursements  and advances incurred or made by the Agent in
         accordance  with any  provision of this  Agreement  or the  Transaction
         Documents  (including  the reasonable  compensation  and the reasonable
         expenses and disbursements of its agents and counsel),  except any such
         expense,  disbursement  or  advance  as  may  be  attributable  to  its
         negligence, willful misconduct or bad faith; and

                  (c) to  indemnify  the  Agent  for,  and to hold  it  harmless
         against,  any  loss,  liability  or  reasonable  out-of-pocket  expense
         incurred without gross negligence,  willful  misconduct or bad faith on
         its  part,  arising  out of or in  connection  with the  acceptance  or
         administration of its duties under the Transaction Documents, including
         the costs and  expenses  (including  reasonable  fees and  expenses  of
         counsel) of defending itself against any claim, whether asserted by the
         Company,  a Holder or any other Person, or liability in connection with
         the  exercise or  performance  of any of its powers or duties under the
         Transaction  Documents.  The Agent shall promptly notify the Company of
         any third party claim  which may give rise to the  indemnity  hereunder
         and give the Company the  opportunity  to participate in the defense of
         such claim with  counsel  reasonably  satisfactory  to the  indemnified
         party,  and no such claim shall be settled  without the written consent
         of the  Company,  which  consent  shall not be  unreasonably  withheld,
         provided  that any failure to give any such notice shall not affect the
         obligation of the Company under this  Section.  The  provisions of this
         Section  7.7 shall  survive  the  termination  of this  Agreement,  the
         satisfaction  or discharge of the Equity Units or Stripped Equity Units
         and/ or the Separate Notes or the resignation or removal of the Agent.

         Section 7.8       CORPORATE AGENT REQUIRED; ELIGIBILITY.

         There  shall  at all  times  be an  Agent  hereunder  which  shall be a
corporation  organized and doing business under the laws of the United States of
America,  any State thereof or the District of Columbia,  authorized  under such
laws to exercise  corporate  trust  powers,  having (or being a member of a bank
holding company having) a combined capital and surplus of at least $500,000,000,
subject to supervision  or examination by federal or state  authority and having
(or being a member of a bank holding company having) a Corporate Trust Office in
the Borough of Manhattan,  the City of New York, if there be such a corporation,
qualified  and  eligible  under this  Article and  willing to act on  reasonable
terms.  If such  corporation  publishes  reports of condition at least annually,
pursuant  to  law  or to the  requirements  of  said  supervising  or  examining
authority,  then for the  purposes of this  Section,  the  combined  capital and
surplus  of such  corporation  shall be deemed to be its  combined  capital  and
surplus as set forth in its most recent report of condition so published.  If at
any time the Agent shall cease to be eligible in accordance  with the provisions
of this Section,  it shall resign  immediately in the manner and with the effect
hereinafter specified in this Article.

                                      -61-
<PAGE>

         Section 7.9       RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

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

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

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

                  (d) If at any time:

                            (1)  the  Agent  has a  "conflicting  interest"  (as
                        defined  in  Section  310(b)  of the TIA)  and  fails to
                        eliminate the conflicting interest or resign pursuant to
                        Section 310(b) of the TIA upon written request  therefor
                        by the Company or by any Holder who has been a bona fide
                        Holder  of a Unit for at least  six  months,  as if this
                        Agreement were an indenture  qualified under the TIA, as
                        if the Equity  Units or  Stripped  Equity  Units were in
                        default  and as if such  default  had not been  cured or
                        waived within the applicable period under Section 310(b)
                        of the TIA; or

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

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

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

                  (e) If the Agent shall resign,  be removed or become incapable
         of acting,  or if a vacancy  shall occur in the office of Agent for any
         cause,  the Company,  by a Board

                                      -62-
<PAGE>

         Resolution,  shall promptly  appoint a successor Agent and shall comply
         with the applicable requirements of Section 7.10. If no successor Agent
         shall have been so appointed by the Company and accepted appointment in
         the manner  required  by Section  7.10,  any Holder who has been a bona
         fide Holder of Equity  Units or Stripped  Equity Units for at least six
         months  may, on behalf of himself  and all others  similarly  situated,
         petition any court of competent  jurisdiction  for the appointment of a
         successor Agent.

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

         Section 7.10      ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

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

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

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

         Section 7.11      MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
                           BUSINESS.

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

                                      -63-
<PAGE>

with the same effect as if such  successor  Agent had itself  authenticated  and
executed such Equity Units and Stripped Equity Units.

         Section 7.12      PRESERVATION OF INFORMATION; COMMUNICATIONS TO
                           HOLDERS.

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

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

         Section 7.13      FAILURE TO ACT.

         In the event of any  ambiguity  in the  provisions  of any  Transaction
Document or any dispute  between or  conflicting  claims by or among the parties
hereto or any other Person, the Agent shall be entitled,  after prompt notice to
the Company and the Holders of Equity Units and Stripped  Equity  Units,  at its
sole  option,  to refuse  to comply  with any and all such  claims,  demands  or
instructions so long as such dispute or conflict shall  continue,  and the Agent
shall not be or become  liable in any way to any of the  parties  hereto for its
failure  or  refusal  to  comply  with  such  conflicting  claims,   demands  or
instructions. The Agent shall be entitled to refuse to act until either (i) such
conflicting or adverse claims or demands shall have been finally determined by a
court of competent  jurisdiction or settled by agreement between the conflicting
parties as evidenced in a writing, reasonably satisfactory to the Agent, or (ii)
the Agent shall have received security or an indemnity  reasonably  satisfactory
to the Agent  sufficient to save the Agent harmless from and against any and all
loss, liability or reasonable out-of-pocket expense which the Agent may incur by
reason of its acting without bad faith,  willful misconduct or gross negligence.
The Agent may in addition elect to commence an interpleader action or seek other
judicial  relief or orders  as the  Agent  may deem  necessary.  Notwithstanding
anything  contained  herein to the contrary,  the Agent shall not be required to
take any action  that is in its  opinion  contrary to law or to the terms of any
Transaction  Document,  or which would in its  opinion  subject it or any of its
officers, employees or directors to liability.

         Section 7.14      NO OBLIGATIONS OF AGENT.

         Except to the extent  otherwise  provided in this Agreement,  the Agent
assumes  no  obligation  and shall not be subject  to any  liability  under this
Agreement,  the Pledge Agreement or any Forward Purchase  Contract in respect of
the  obligations  of the Holder of any Equity  Units or

                                      -64-
<PAGE>

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

         Section 7.15      TAX COMPLIANCE.

                  (a) The Agent, on its own behalf and on behalf of the Company,
         will comply with all applicable  certification,  information  reporting
         and withholding  (including "backup" withholding)  requirements imposed
         on  it as a  paying  agent  by  applicable  tax  laws,  regulations  or
         administrative  practice with respect to any payments made with respect
         to the Equity Units and Stripped Equity Units.  Such  compliance  shall
         include,  without  limitation,  the  preparation  and timely  filing of
         required  returns and the timely payment of all amounts  required to be
         withheld to the appropriate taxing authority or its designated agent.

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

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

                                 ARTICLE VIII.
                             SUPPLEMENTAL AGREEMENTS

         Section 8.1       SUPPLEMENTAL AGREEMENTS WITHOUT CONSENT OF HOLDERS.

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

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

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

                                      -65-
<PAGE>

                  (c) to evidence and provide for the  acceptance of appointment
         hereunder by a successor Agent; or

                  (d) to make  provision  with  respect to the rights of Holders
         pursuant to the requirements of Section 5.6(b) or 5.10; or

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

                  (f) to  permit  the  substitution  by  Holders  of  designated
         Company debt instruments for the Pledged Notes as Collateral under this
         Agreement.

         Section 8.2       SUPPLEMENTAL AGREEMENTS WITH CONSENT OF HOLDERS.

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

                       (1) change any Payment Date;

                       (2) change the amount or the type of Collateral  required
                  to be  Pledged  to  secure a  Holder's  Obligations  under the
                  Forward  Purchase  Contract  unless not  adverse  to  Holders,
                  impair  the  right  of  the  Holder  of any  Forward  Purchase
                  Contract to receive  distributions  on the related  Collateral
                  (except  as  provided  in  Section  8.1(f)  and except for the
                  rights of Holders of Equity Units to  substitute  the Treasury
                  Securities   for   the   Pledged   Notes,   Pledged   Treasury
                  Consideration or Pledged Applicable  Ownership Interest in the
                  Treasury  Portfolio,  or the  rights of  holders  of  Stripped
                  Equity  Units  to  substitute  Notes or  appropriate  Treasury
                  Consideration or Applicable Ownership Interest in the Treasury
                  Portfolio for the Pledged  Treasury  Securities)  or otherwise
                  adversely affect the Holder's rights in or to such Collateral;

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

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

                                      -66-
<PAGE>

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

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

                       (7)  reduce the  percentage  of the  outstanding  Forward
                  Purchase  Contracts  the consent of whose  Holders is required
                  for any such  supplemental  agreement;  provided,  that if any
                  amendment or proposal referred to above would adversely affect
                  only the Equity Units or the Stripped Equity Units,  then only
                  the  affected  class of Holder as of the  record  date for the
                  Holders  entitled to vote  thereon will be entitled to vote on
                  such  amendment  or proposal,  and such  amendment or proposal
                  shall not be  effective  except with the consent of Holders of
                  not less than a majority  or 100% of such  class,  as the case
                  may be.

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

         Section 8.3       EXECUTION OF SUPPLEMENTAL AGREEMENTS.

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

         Section 8.4       EFFECT OF SUPPLEMENTAL AGREEMENTS.

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

         Section 8.5       REFERENCE TO SUPPLEMENTAL AGREEMENTS.

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

                                      -67-
<PAGE>

be prepared and executed by the Company and authenticated, executed on behalf of
the Holders and delivered by the Agent in exchange for outstanding Certificates.

                                  ARTICLE IX.
                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

         Section 9.1       COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.

         The Company shall not  consolidate  with or merge into any other Person
or convey,  transfer  or lease its  properties  and assets  substantially  as an
entirety to any Person, unless:

                  (a) the Person formed by such  consolidation or into which the
         Company is merged or the Person which acquires by conveyance,  transfer
         or lease the properties and assets of the Company  substantially  as an
         entirety shall be a corporation, partnership, limited liability company
         or trust, shall be organized and validly existing under the laws of the
         United States of America, any State thereof or the District of Columbia
         and shall  expressly  assume  every  covenant  of this  Agreement,  the
         Forward Purchase  Contracts,  the Notes, the Remarketing  Agreement and
         the Pledge  Agreement  on the part of the  Company to be  performed  or
         observed  by one or more  supplemental  agreements  in form  reasonably
         satisfactory  to the  Agent  and the  Collateral  Agent,  executed  and
         delivered to the Agent and the Collateral Agent by such Person;

                  (b) immediately  after giving effect to such  transaction,  no
         default  under this  Agreement,  the Forward  Purchase  Contracts,  the
         Remarketing  Agreement or the Pledge  Agreement shall have happened and
         be continuing; and

                  (c) the  Company  has  delivered  to the  Agent  an  Officers'
         Certificate  and  an  Opinion  of  Counsel,   each  stating  that  such
         consolidation,   merger,   conveyance,   transfer  or  lease  and  such
         supplemental  agreement(s)  comply  with this  Section 9.1 and that all
         conditions  precedent  herein provided for relating to such transaction
         have been complied with.

This  Section  9.1 shall not apply to any merger or  consolidation  in which the
Company is the surviving corporation.

         Section 9.2       SUCCESSOR SUBSTITUTED.

                  (a) Upon any consolidation  with or merger of the Company into
         any  other  Person,  or  any  conveyance,  transfer  or  lease  of  the
         properties  and assets of the Company  substantially  as an entirety in
         accordance  with  Section  9.1,  the  successor  Person  formed by such
         consolidation  or into  which the  Company  is merged or to which  such
         conveyance,  transfer  or  lease  is  made  shall  succeed  to,  and be
         substituted for, and may exercise every right and power of, the Company
         under this Agreement  with the same effect as if such successor  Person
         had been named as the Company  herein,  and  thereafter,  except in the
         case of a  lease,  the  predecessor  Person  shall be  relieved  of all
         obligations and covenants under this  Agreement,  the Forward  Purchase
         Contracts,  the Notes,  the Units,  the  Remarketing  Agreement and the
         Pledge Agreement.

                                      -68-
<PAGE>

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

                                    ARTICLE X.
                                    COVENANTS

         Section 10.1      PERFORMANCE UNDER PURCHASE CONTRACTS.

         The Company  covenants  and agrees for the benefit of the Holders  from
time to time of the Equity Units and Stripped Equity Units that it will duly and
punctually  perform its  obligations  under the Forward  Purchase  Contracts  in
accordance with the terms of the Forward Purchase  Contracts and this Agreement.
In the case of Early  Settlement  pursuant to Section 5.7, if the United  States
federal securities laws so require, the Company will use commercially reasonable
efforts to (i) have in effect a  registration  statement  covering the shares of
Common Stock to be delivered in respect of the Forward Purchase  Contracts being
settled and (ii) provide a prospectus in connection therewith, in each case that
may be used in connection with such Early Settlement.

         Section 10.2      MAINTENANCE OF OFFICE OR AGENCY.

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

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

                                      -69-
<PAGE>

         Section 10.3      COMPANY TO RESERVE COMMON STOCK.

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

         Section 10.4      COVENANTS AS TO COMMON STOCK.

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

         Section 10.5      STATEMENTS OF OFFICER OF THE COMPANY AS TO DEFAULT.

         The Company will deliver to the Agent, within 120 days after the end of
each fiscal year of the  Company  ending  after the date  hereof,  an  Officer's
Certificate,  stating whether or not to the best knowledge of the signer thereof
the Company is in default in the performance and observance of any of the terms,
provisions  and  conditions  hereof,  and if the  Company  shall be in  default,
specifying  all such  defaults  and the nature and status  thereof of which such
officer may have knowledge.

         Section 10.6      ERISA.

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

                            [SIGNATURE PAGES FOLLOW]

                                      -70-
<PAGE>

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

                                          AMERICAN ELECTRIC POWER COMPANY, INC.

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

                                          [ ]
                                          as Forward Purchase Contract Agent

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

<PAGE>

                                    EXHIBIT A
                        FORM OF EQUITY UNITS CERTIFICATE

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

         Unless this Certificate is presented by an authorized representative of
The  Depository  Trust  Company  (55 Water  Street,  New York,  New York) to the
Company or its agent for registration of transfer,  exchange or payment, and any
Certificate  issued is  registered in the name of Cede & Co., or such other name
as requested by an authorized  representative  of The Depository  Trust Company,
and any payment hereon is made to Cede & Co., ANY TRANSFER,  PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner
hereof, Cede & Co., has an interest herein.]

                   (Form of Face of Equity Units Certificate)

No. ______________                                        CUSIP No. ____________

Number of Equity Units____________

         This Equity Units  Certificate  certifies that [For inclusion in Global
Certificates  only -- Cede & Co.] is the  registered  Holder  of the  number  of
Equity  Units set forth above [For  inclusion in Global  Certificates  only - or
such other  number of Equity  Units  reflected  in the  Schedule of Increases or
Decreases in Global Certificates  attached hereto].  Each Equity Unit represents
(i) either (a) beneficial  ownership by the Holder of one [ ]% Senior Note Due [
], 2007 (the  "Note") of  American  Electric  Power  Company,  Inc.,  a New York
corporation  (the "Company")  having a principal  amount of $50,  subject to the
Pledge of such Note by such Holder pursuant to the Pledge  Agreement,  or (b) if
the Note has been  remarketed  by the  Remarketing  Agent (or if the  Holder has
elected not to have the Note remarketed by delivering the  appropriate  Treasury
Consideration  specified by the Remarketing  Agent),  the  appropriate  Treasury
Consideration,  subject to the  Pledge of such  Treasury  Consideration  by such
Holder pursuant to the Pledge  Agreement,  or (c) if a Tax Event  Redemption has
occurred,   the  appropriate  Applicable  Ownership  Interest  in  the  Treasury
Portfolio  subject to the Pledge of such  Applicable  Ownership  Interest in the
Treasury  Portfolio  pursuant to the Pledge  Agreement,  and (ii) the rights and
obligations of the Holder under one Forward Purchase  Contract with the Company.
All  capitalized  terms used herein  which are  defined in the Forward  Purchase
Contract Agreement have the meaning set forth therein.

         Pursuant to the Pledge Agreement,  the Note or the appropriate Treasury
Consideration or Applicable Ownership Interest in the Treasury Portfolio, as the
case may be,  constituting  part of

                                      A-1
<PAGE>

each Equity Units evidenced hereby has been pledged to the Collateral Agent, for
the benefit of the Company,  to secure the  obligations  of the Holder under the
Forward Purchase Contract comprising a part of such Equity Units.

         The  Pledge  Agreement  provides  that all  payments  in respect of the
Pledged Notes,  Pledged Treasury  Consideration or Pledged Applicable  Ownership
Interest in the Treasury  Portfolio  received by the  Collateral  Agent shall be
paid by the Collateral  Agent by wire transfer in same day funds (i) in the case
of (A) quarterly cash distributions on Equity Units which include Pledged Notes,
Pledged Treasury  Consideration or Pledged Applicable  Ownership Interest in the
Treasury  Portfolio  and (B) any  payments  in respect  of the  Notes,  Treasury
Consideration or Applicable Ownership Interest in the Treasury Portfolio, as the
case may be,  that have been  released  from the Pledge  pursuant  to the Pledge
Agreement,  to the Agent to the account  designated by the Agent,  no later than
10:00 a.m.,  New York City time, on the Business Day such payment is received by
the Collateral Agent (provided that in the event such payment is received by the
Collateral  Agent on a day that is not a Business  Day or after  9:00 a.m.,  New
York City time, on a Business Day, then such payment shall be made no later than
9:30 a.m., New York City time, on the next succeeding  Business Day) and (ii) in
the  case  of  payments  in  respect  of any  Pledged  Notes,  Pledged  Treasury
Consideration  or  Pledged   Applicable   Ownership  Interest  in  the  Treasury
Portfolio,  as the case may be,  to be paid  upon  settlement  of such  Holder's
obligations to purchase Common Stock under the Forward Purchase Contract, to the
Company on the Stock  Purchase Date (as defined  herein) in accordance  with the
terms  of  the  Pledge  Agreement,   in  full  satisfaction  of  the  respective
obligations  of the  Holders of the Equity  Units of which such  Pledged  Notes,
Pledged Treasury  Consideration or Pledged Applicable  Ownership Interest in the
Treasury  Portfolio,  as the case may be, are a part under the Forward  Purchase
Contracts forming a part of such Equity Units. Quarterly distributions on Equity
Units which include Pledged Notes,  Pledged  Treasury  Consideration  or Pledged
Applicable  Ownership  Interest in the Treasury  Portfolio,  as the case may be,
which are  payable  quarterly  in  arrears  on [ ], [ ], [ ] and [ ] each  year,
commencing [ ], 2002 (a "Payment  Date"),  shall,  subject to receipt thereof by
the Agent from the Collateral  Agent (if the Collateral  Agent is the registered
owner  thereof),  be  paid  to the  Person  in  whose  name  this  Equity  Units
Certificate  (or a Predecessor  Equity Units  Certificate)  is registered at the
close of business on the Record Date for such Payment Date.

         Each Forward Purchase Contract evidenced hereby obligates the Holder of
this Equity Units Certificate to purchase, and the Company to sell, on [ ], 2005
(the "Stock Purchase Date"),  at a price equal to $50 (the "Stated  Amount"),  a
number  of newly  issued  shares  of  common  stock,  $6.50  par value per share
("Common  Stock"),  of the Company,  equal to the  Settlement  Rate unless on or
prior to the Stock  Purchase Date there shall have occurred a Termination  Event
or a Cash  Settlement,  Early Settlement or Merger Early Settlement with respect
to the Equity Units of which such Forward  Purchase  Contract is a part,  all as
provided in the Forward Purchase Contract  Agreement and more fully described on
the reverse  hereof.  The Purchase  Price (as defined  herein) for the shares of
Common Stock  purchased  pursuant to each Forward  Purchase  Contract  evidenced
hereby,  if not  paid  earlier,  shall  be paid on the  Stock  Purchase  Date by
application  of  payments  received  in respect of the  Pledged  Notes,  Pledged
Treasury  Consideration or Pledged Applicable Ownership Interest in the Treasury
Portfolio,  as the case may be, pledged to secure the  obligations of the Holder
under such Forward Purchase Contract.

         Payments  on the Notes or the  appropriate  Treasury  Consideration  or
Applicable

                                      A-2
<PAGE>

Ownership  Interest  in the  Treasury  Portfolio,  as the case  may be,  will be
payable  at the Office of the Agent in The City of New York or, at the option of
the Company,  by check mailed to the address of the Person  entitled  thereto as
such  address  appears on the Equity  Units  Register or by wire  transfer to an
account  specified  by such  Person at least  five  Business  Days  prior to the
applicable Payment Date.

         The Company  shall pay on each  Payment Date in respect of each Forward
Purchase Contract forming part of an Equity Unit evidenced hereby an amount (the
"Contract  Adjustment  Payment")  equal to [ ]% per year of the  Stated  Amount,
computed  on the basis of a 360-day  year of twelve  30-day  months,  subject to
deferral  at the  option of the  Company as  provided  in the  Forward  Purchase
Contract Agreement and more fully described on the reverse hereof (provided that
if any date on which a Contract  Adjustment Payment is to be made on the Forward
Purchase  Contracts  is not a  Business  Day,  then  payment  of  such  Contract
Adjustment  Payment payable on such date will be made on the next succeeding day
which is a Business  Day,  and no interest or payment will be paid in respect of
such delay,  except  that if such next  succeeding  Business  Day is in the next
succeeding  calendar  year,  then such payment  will be made on the  immediately
preceding Business Day). Such Contract  Adjustment  Payments shall be payable to
the Person in whose name this Equity Units Certificate (or a Predecessor  Equity
Units Certificate) is registered at the close of business on the Record Date for
such Payment Date.

         Contract Adjustment Payments will be payable at the Office of the Agent
in The City of New York or, at the option of the Company, by check mailed to the
address of the Person  entitled  thereto as such  address  appears on the Equity
Units  Register or by wire transfer to the account  designated to the Agent by a
prior written notice by such Person  delivered at least five Business Days prior
to the  applicable  Payment  Date.  Reference  is  hereby  made  to the  further
provisions set forth on the reverse hereof,  which further  provisions shall for
all purposes have the same effect as if set forth at this place.

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

                                      A-3
<PAGE>

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

                                          AMERICAN ELECTRIC POWER COMPANY, INC.

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

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

                                          By: [],  not  individually  but solely
                                          as Attorney-in-Fact of such Holder

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

                                      A-4
<PAGE>

                      AGENT'S CERTIFICATE OF AUTHENTICATION

         This  is  one of  the  Equity  Units  Certificates  referred  to in the
within-mentioned Forward Purchase Contract Agreement.

                                            [ ],
                                            as Forward Purchase Contract Agent

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

                                      A-5
<PAGE>

                  (Form of Reverse of Equity Units Certificate)

         Each  Forward  Purchase  Contract  evidenced  hereby is  governed  by a
Forward  Purchase  Contract  Agreement,  dated  as of June [ ],  2002 (as may be
supplemented  from time to time,  the "Forward  Purchase  Contract  Agreement"),
between the Company and [ ], as Forward  Purchase  Contract Agent (including its
successors  thereunder,  herein called the "Agent"),  to which Forward  Purchase
Contract Agreement and supplemental  agreements thereto reference is hereby made
for a description of the respective rights, limitations of rights,  obligations,
duties and immunities  thereunder of the Agent, the Company, and the Holders and
of the terms  upon  which the  Equity  Units  Certificates  are,  and are to be,
executed and delivered.

         Each Forward Purchase Contract evidenced hereby obligates the Holder of
this Equity Units Certificate to purchase, and the Company to sell, on the Stock
Purchase Date at a price equal to $50 (the "Purchase Price"), a number of shares
of Common Stock of the Company equal to the Settlement Rate, unless, on or prior
to the Stock Purchase Date, there shall have occurred a Termination  Event or an
Early Settlement, Merger Early Settlement or Cash Settlement with respect to the
Units of which such Forward Purchase  Contract is a part. The "Settlement  Rate"
is equal to (a) if the  Applicable  Market  Value (as defined  below) is greater
than or equal to $[ ] (the "Threshold Appreciation Price"), [ ] shares of Common
Stock per Forward Purchase Contract,  (b) if the Applicable Market Value is less
than the  Threshold  Appreciation  Price but is greater than $[ ], the number of
shares of Common Stock per Forward Purchase  Contract equal to the Stated Amount
of the related  Equity Units divided by the  Applicable  Market Value and (c) if
the Applicable  Market Value is less than or equal to $[ ], [ ] shares of Common
Stock per Forward  Purchase  Contract,  in each case  subject to  adjustment  as
provided in the Forward Purchase  Contract  Agreement.  No fractional  shares of
Common Stock will be issued upon settlement of Forward  Purchase  Contracts,  as
provided in the Forward Purchase Contract Agreement.

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

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

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

                                      A-6
<PAGE>

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

         Each Forward Purchase Contract evidenced hereby may be settled prior to
the Stock Purchase Date through Early Settlement or Merger Early Settlement, and
may be  settled on the Stock  Purchase  Date  through  Cash  Settlement,  all in
accordance with the terms of the Forward Purchase Contract Agreement.

         In  accordance  with  the  terms  of  the  Forward  Purchase   Contract
Agreement,  the Holder of this Equity Units  Certificate  shall pay the Purchase
Price for the shares of Common Stock purchased pursuant to each Forward Purchase
Contract  evidenced hereby (i) by effecting a Cash Settlement,  Early Settlement
or Merger Early Settlement,  (ii) by application of payments received in respect
of  the  Pledged  Treasury   Consideration  acquired  from  the  proceeds  of  a
remarketing of the related Pledged Notes underlying the Equity Units represented
by this  Equity  Units  Certificate,  (iii) if the  Holder  has  elected  not to
participate in the remarketing,  by application of payments  received in respect
of the Pledged  Treasury  Consideration  deposited  by such Holder in respect of
such Forward Purchase  Contract,  or (iv) if a Tax Event Redemption has occurred
prior to the  successful  remarketing  of the Notes,  by application of payments
received in respect of the Pledged Applicable Ownership Interest in the Treasury
Portfolio  purchased  by the  Collateral  Agent on behalf of the  Holder of this
Equity  Units  Certificate.  If, as provided in the  Forward  Purchase  Contract
Agreement,  upon the occurrence of the Last Failed  Remarketing,  the Collateral
Agent,  for the  benefit  of the  Company,  exercises  its  rights  as a secured
creditor  with  respect  to the  Pledged  Notes  related  to this  Equity  Units
Certificate,  any accrued and unpaid  interest on such Pledged Notes will become
payable by the Company to the Holder of this  Equity  Units  Certificate  in the
manner provided for in the Forward Purchase Contract Agreement.

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

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

                                      A-7
<PAGE>

         The Equity Units  Certificates are issuable only in registered form and
only in denominations of a single Equity Unit and any integral multiple thereof.
The transfer of any Equity Units Certificate will be registered and Equity Units
Certificates  may be  exchanged  as provided in the  Forward  Purchase  Contract
Agreement.  The Equity Units Registrar may require a Holder, among other things,
to furnish  appropriate  endorsements  and transfer  documents  permitted by the
Forward Purchase Contract Agreement. No service charge shall be required for any
such  registration  of transfer or  exchange,  but the Company and the Agent may
require  payment  of a sum  sufficient  to cover  any tax or other  governmental
charge  payable  in  connection  therewith.  The  Holder of an Equity  Units may
substitute  for the Pledged Notes,  Pledged  Treasury  Consideration  or Pledged
Applicable  Ownership  Interest in the Treasury  Portfolio,  as the case may be,
securing its obligations  under the related Forward Purchase  Contract  Treasury
Securities  in  accordance  with the  terms  of the  Forward  Purchase  Contract
Agreement and the Pledge Agreement. From and after such Collateral Substitution,
the Units  for which  such  Pledged  Treasury  Securities  secure  the  Holder's
obligation  under  the  Forward  Purchase  Contract  shall be  referred  to as a
"Stripped Equity Units." A Holder that elects to substitute a Treasury  Security
for  Pledged  Notes,  Pledged  Treasury   Consideration  or  Pledged  Applicable
Ownership  Interest  in the  Treasury  Portfolio,  as the case  may be,  thereby
creating  Stripped  Equity Units,  shall be responsible for any fees or expenses
payable in  connection  therewith.  Except as provided  in the Forward  Purchase
Contract  Agreement,  for so long as the Forward Purchase Contract underlying an
Equity Unit remains in effect, such Equity Units shall not be separable into its
constituent  parts,  and the rights and obligations of the Holder of such Equity
Units in respect of the Pledged Note, Pledged Treasury  Consideration or Pledged
Applicable Ownership Interest in the Treasury Portfolio, as the case may be, and
Forward Purchase Contract  constituting such Equity Units may be transferred and
exchanged only as an Equity Units.

         A Holder of  Stripped  Equity  Units may  reestablish  Equity  Units by
delivering  to  the  Collateral   Agent  Notes  or  the   appropriate   Treasury
Consideration or Applicable Ownership Interest in the Treasury Portfolio, as the
case may be, in exchange for the release of the Pledged  Treasury  Securities in
accordance  with the terms of the Forward  Purchase  Contract  Agreement and the
Pledge Agreement.

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

         The  Company  shall  have the  right,  at any time  prior to the  Stock
Purchase  Date,  to defer the payment of any or all of the  Contract  Adjustment
Payments  otherwise  payable on any Payment Date,  but only if the Company shall
give the Holders and the Agent written  notice of its election to defer Contract
Adjustment Payments as provided in the Forward Purchase Contract Agreement.  Any
Contract  Adjustment Payments so deferred shall, to the extent permitted by law,
bear additional  Contract  Adjustment  Payments  thereon at the rate of [ ]% per
year  (computed  on the  basis  of a  360-day  year of  twelve  30-day  months),
compounding on each succeeding  Payment

                                      A-8
<PAGE>

Date,  until paid in full (such  deferred  installments  of Contract  Adjustment
Payments,  if any, together with the additional Contract Adjustment Payments, if
any,  accrued  thereon,  are  referred  to  herein  as  the  "Deferred  Contract
Adjustment  Payments").  Deferred Contract Adjustment Payments, if any, shall be
due on the next  succeeding  Payment  Date except to the extent that  payment is
deferred  pursuant  to the  Forward  Purchase  Contract  Agreement.  No Contract
Adjustment  Payments may be deferred to a date that is after the Stock  Purchase
Date and no such deferral period may end other than on a Payment Date.

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

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

         In the event the Company  exercises  its option to defer the payment of
Contract  Adjustment  Payments,  then,  until the Deferred  Contract  Adjustment
Payments have been paid, the Company shall not declare or pay dividends on, make
distributions  with  respect  to, or  redeem,  purchase  or  acquire,  or make a
liquidation  payment  with  respect  to, any of its Common  Stock other than (i)
purchases,  redemptions or  acquisitions of shares of Common Stock in connection
with any employment contract,  benefit plan or other similar arrangement with or
for the benefit of  employees,  officers  or  directors  or a stock  purchase or
dividend   reinvestment  plan,  or  the  satisfaction  by  the  Company  of  its
obligations  pursuant to any  contract or security  outstanding  on the date the
Company exercises its rights to defer the Contract Adjustment Payments;  (ii) as
a result of a reclassification of the Company's Capital Stock or the exchange or
conversion  of one  class  or  series  of for  another  class or  series  of the
Company's Capital Stock; (iii) the purchase of fractional interests in shares of
any series of the Company's  Common Stock pursuant to the conversion or exchange
provisions  of such Common Stock or the security  being  converted or exchanged;
(iv) dividends or  distributions in any series of the Company's Common Stock (or
rights to acquire Common Stock) or  repurchases,  acquisitions or redemptions of
Common Stock in connection with the issuance or exchange of any series of Common
Stock  (or  securities  convertible  into  or  exchangeable  for  shares  of the
Company's  Common Stock;  or (v)  redemptions,  exchanges or  repurchases of any
rights outstanding under a shareholder rights plan or the declaration or payment
thereunder  of a dividend or  distribution  of or with  respect to rights in the
future.

         The Forward  Purchase  Contracts and all  obligations and rights of the
Company and the Holders thereunder,  including,  without limitation,  the rights
and  obligations  of the Holders to receive and the obligation of the Company to
pay Contract  Adjustment  Payments,  if any, or any Deferred Contract Adjustment
Payments,  and the  rights  of the  Holders  to  purchase  Common

                                      A-9
<PAGE>

Stock, shall immediately and automatically  terminate,  without the necessity of
any notice or action by any Holder, the Agent or the Company, if, on or prior to
the Stock  Purchase  Date, a  Termination  Event shall have  occurred.  Upon the
occurrence of a Termination  Event,  the Company shall  promptly but in no event
later than two Business Days  thereafter  give written notice to the Agent,  the
Collateral  Agent and to the Holders,  at their  addresses as they appear in the
Equity Units Register. Upon and after the occurrence of a Termination Event, the
Collateral Agent shall release the Pledged Notes, Pledged Treasury Consideration
or Pledged Applicable Ownership Interest in the Treasury Portfolio,  as the case
may be,  from the  Pledge  in  accordance  with  the  provisions  of the  Pledge
Agreement.

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

         The Holder of this Equity Units Certificate,  by its acceptance hereof,
authorizes  the Agent to enter into and  perform the  related  Forward  Purchase
Contracts forming part of the Equity Units evidenced hereby on its behalf as its
attorney-in-fact,  expressly  withholds  any  consent to the  assumption  (i.e.,
affirmance) of the Forward  Purchase  Contracts by the Company or its trustee in
the event that the Company  becomes  the subject of a case under the  Bankruptcy
Code,  agrees to be bound by the terms and  provisions  of the Forward  Purchase
Contracts,  covenants and agrees to perform such Holder's obligations under such
Forward Purchase  Contracts,  consents to the provisions of the Forward Purchase
Contract Agreement,  irrevocably  authorizes the Agent to enter into and perform
the Pledge Agreement on such Holder's behalf as  attorney-in-fact,  and consents
to and agrees to be bound by the Pledge of the Notes or the appropriate Treasury
Consideration or Applicable Ownership Interest in the Treasury Portfolio, as the
case may be,  underlying  this Equity Units  Certificate  pursuant to the Pledge
Agreement,  provided, that upon a Termination Event, the rights of the Holder of
such Units under the Forward Purchase Contract may be enforced without regard to
any other rights or obligations.  The Holder further covenants and agrees, that,
to the  extent and in the  manner  provided  in the  Forward  Purchase  Contract
Agreement and the Pledge Agreement,  but subject to the terms thereof,  payments
in respect of the  Pledged  Notes,  Pledged  Treasury  Consideration  or Pledged
Applicable Ownership Interest in the Treasury Portfolio,  as the case may be, to
be paid upon  settlement of such Holder's  obligations to purchase  Common Stock
under the Forward Purchase Contract, shall be paid on the Stock Purchase Date by
the Collateral Agent to the Company in satisfaction of such Holder's obligations
under such Forward  Purchase  Contract  and such Holder shall  acquire no right,
title or interest in such payments.

         The  Company and each  Holder of any Equity  Units or  Stripped  Equity
Units,  and each Beneficial Owner thereof,  by its acceptance  thereof or of its
interest  therein,  further  agrees to treat (i) the purchase of Equity Units as
the purchase of a unit consisting of the Forward Purchase  Contract and the Note
and (ii)  itself  as the owner of the  related  Notes,  Treasury  Consideration,
Applicable  Ownership Interest in the Treasury Portfolio or Treasury Securities,
as the case may be.

                                      A-10
<PAGE>

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

         The Forward  Purchase  Contracts shall for all purposes be governed by,
and construed in  accordance  with,  the laws of the State of New York,  without
regard to its principles of conflicts of laws.

         The  Company,  the Agent and any agent of the  Company or the Agent may
treat the Person in whose name this Equity Units  Certificate  is  registered as
the owner of the Equity  Units  evidenced  hereby for the  purpose of  receiving
quarterly  payments on the Notes,  the Treasury  Consideration or the Applicable
Ownership  Interest in the  Treasury  Portfolio,  as the case may be,  receiving
payments of Contract  Adjustment  Payments,  if any, and any  Deferred  Contract
Adjustment  Payments,  performance of the Forward Purchase Contracts and for all
other  purposes  whatsoever  (subject  to the Record  Date  provisions  hereof),
whether or not any  payments in respect  thereof be overdue and  notwithstanding
any notice to the  contrary,  and neither the Company,  the Agent,  nor any such
agent shall be affected by notice to the contrary.

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

         A copy of the Forward  Purchase  Contract  Agreement is  available  for
inspection by any Holder at the Corporate Trust Office.

                                      A-11
<PAGE>

                                  ABBREVIATIONS

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

TEN COM -                         as tenants in common
UNIF GIFT MIN ACT -               Custodian
                                  (cust)              (minor)
                                  Under Uniform Gifts to Minors Act
                                                      (State)
TEN ENT -                         as tenants by the entireties
JT TEN -                          as joint tenants with right of survivorship
                                  and not as tenants in common

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

                                      A-12
<PAGE>

                                   ASSIGNMENT

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

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

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

the  within  Equity  Units  Certificate  and  all  rights   thereunder,   hereby
irrevocably constituting and appointing  ___________________________ attorney to
transfer said Equity Units  Certificate on the books of American  Electric Power
Company, Inc. with full power of substitution in the premises.

Dated: _________________________

Signature: _____________________________

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

Signature Guarantee: ___________________________.

                                      A-13
<PAGE>

                             SETTLEMENT INSTRUCTIONS

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

Dated:                                      Signature:
      -------------------------                        -------------------------

                                            Signature Guarantee: _______________
                                            (if assigned to another person)

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

Name                                                    Name

Address                                                 Address

Social Security or other Taxpayer
Identification Number, if any

                                      A-14
<PAGE>

                            ELECTION TO SETTLE EARLY

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

Dated:                                 Signature:
      -------------------------                   ------------------------------

                                       Signature Guarantee:
                                                            --------------------
         Number of Units  evidenced  hereby as to which Early  Settlement of the
related Forward Purchase Contracts is being elected:

If shares of Common Stock are to be registered     REGISTERED HOLDER
in the name of and delivered to and Pledged
Notes, Pledged Treasury Consideration or           Please print name and address
Pledged Applicable Ownership Interest in the       of Registered Holder:
Treasury Portfolio, as the case may be, are to
be transferred to a Person other than the
Holder, please print such Person's name and
address:

Name                                                     Name

Address                                                  Address

Social Security or other Taxpayer
Identification Number, if any

         Transfer instructions for Pledged Notes, Pledged Treasury Consideration
or the Pledged Applicable  Ownership Interest in the Treasury Portfolio,  as the
case may be, transferable upon Early Settlement or a Termination Event:

                                      A-15
<PAGE>

                     (TO BE ATTACHED TO GLOBAL CERTIFICATES)

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

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

<TABLE>
<CAPTION>
                                                                    Stated Amount of the
                 Amount of Decrease in    Amount of Increase in      Global Certificate
                 Stated Amount of the     Stated Amount of the    Following Such Decrease        Signature of
     Date         Global Certificate       Global Certificate           or Increase          Authorized Signatory
<S>               <C>                      <C>                      <C>                       <C>

</TABLE>

                                      A-16
<PAGE>

                                    EXHIBIT B

                    FORM OF STRIPPED EQUITY UNITS CERTIFICATE

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

         Unless this Certificate is presented by an authorized representative of
The  Depository  Trust  Company  (55 Water  Street,  New York,  New York) to the
Company or its agent for registration of transfer,  exchange or payment, and any
Certificate  issued is  registered in the name of Cede & Co., or such other name
as requested by an authorized  representative  of The Depository  Trust Company,
and any payment hereon is made to Cede & Co., ANY TRANSFER,  PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner
hereof, Cede & Co., has an interest herein.]

               (Form of Face of Stripped Equity Units Certificate)

No.                                                       CUSIP No. ____________

Number of Stripped Equity Units

         This Stripped Equity Units Certificate certifies that [For inclusion in
Global  Certificates  only -- Cede & Co.] is the registered Holder of the number
of Stripped  Equity Units set forth above [For inclusion in Global  Certificates
only - or such other number of Stripped  Equity Units  reflected in the Schedule
of Increases or Decreases in Global Certificate attached hereto].  Each Stripped
Equity Units represents (i) a 1/20 undivided  beneficial ownership interest in a
Treasury  Security,  subject to the  Pledge of such  interest  in such  Treasury
Security by such Holder  pursuant to the Pledge  Agreement,  and (ii) the rights
and obligations of the Holder under one Forward Purchase  Contract with American
Electric  Power  Company,  Inc., a New York  corporation  (the  "Company").  All
capitalized terms used herein which are defined in the Forward Purchase Contract
Agreement have the meaning set forth therein.

         Pursuant to the Pledge Agreement,  the Treasury  Security  constituting
part of each  Stripped  Equity  Units  evidenced  hereby has been pledged to the
Collateral  Agent, for the benefit of the Company,  to secure the obligations of
the  Holder  under  the  Forward  Purchase  Contract  comprising  a part of such
Stripped Equity Units.

         Each Forward Purchase Contract evidenced hereby obligates the Holder of
this Stripped Equity Units Certificate to purchase,  and the Company to sell, on
the Stock Purchase Date, at a price equal to $50 (the "Stated Amount"), a number
of shares of common stock,  $6.50 par value

                                       B-1
<PAGE>

per share ("Common Stock"), of the Company, equal to the Settlement Rate, unless
on or prior to the Stock  Purchase  Date there shall have occurred a Termination
Event or an Early  Settlement,  Merger Early  Settlement or Cash Settlement with
respect to the Stripped Equity Units of which such Forward Purchase  Contract is
a part,  all as provided in the Forward  Purchase  Contract  Agreement  and more
fully  described on the reverse  hereof.  The Purchase Price (as defined herein)
for the shares of Common  Stock  purchased  pursuant  to each  Forward  Purchase
Contract  evidenced  hereby,  if not paid  earlier,  shall be paid on the  Stock
Purchase  Date by  application  of  payments  received in respect of the Pledged
Treasury  Securities  pledged  to secure  the  obligations  under  such  Forward
Purchase Contract in accordance with the terms of the Pledge Agreement.

         The Company  shall pay on each  Payment Date in respect of each Forward
Purchase  Contract  forming part of a Stripped Equity Units evidenced  hereby an
amount (the "Contract Adjustment Payments") equal to [ ]% per year of the Stated
Amount,  computed on the basis of a 360-day year of 12 30-day months, subject to
deferral  at the  option of the  Company as  provided  in the  Forward  Purchase
Contract Agreement and more fully described on the reverse hereof (provided that
if any date on which Contract  Adjustment Payments are to be made on the Forward
Purchase  Contracts  is  not a  Business  Day,  then  payment  of  the  Contract
Adjustment Payments payable on that date will be made on the next succeeding day
which is a Business  Day,  and no interest or payment will be paid in respect of
the  delay,  except  that if such next  succeeding  Business  Day is in the next
succeeding calendar year, such payment will be made on the immediately preceding
Business Day). Such Contract  Adjustment Payments shall be payable to the Person
in whose name this Stripped Equity Units Certificate (or a Predecessor  Stripped
Equity Units  Certificate)  is registered at the close of business on the Record
Date for such Payment Date.

         Contract Adjustment Payments,  if any, will be payable at the Office of
the Agent in the City of New York or, at the  option  of the  Company,  by check
mailed to the  address of the  Person  entitled  thereto  at such  address as it
appears on the Stripped Equity Units Register or by wire transfer to the account
designated  by such Person in writing at least five  Business  Days prior to the
applicable Payment Date.

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

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

                                      B-2
<PAGE>

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

                        AMERICAN ELECTRIC POWER COMPANY, INC.

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

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

                        By: [ ], not individually but solely as Attorney-in-Fact
                            of such Holder

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

                                      B-3
<PAGE>

                      AGENT'S CERTIFICATE OF AUTHENTICATION

         This  is  one  of  the  Stripped   Equity  Units  referred  to  in  the
within-mentioned Forward Purchase Contract Agreement.

                                            [ ],
                                            as Forward Purchase Contract Agent

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

                                      B-4
<PAGE>

                 (Reverse of Stripped Equity Units Certificate)

         Each  Forward  Purchase  Contract  evidenced  hereby is  governed  by a
Forward  Purchase  Contract  Agreement,  dated  as of June [ ],  2002 (as may be
supplemented  from time to time,  the "Forward  Purchase  Contract  Agreement"),
between the Company and [ ], as Forward  Purchase  Contract Agent (including its
successors  thereunder,  herein called the "Agent"),  to which Forward  Purchase
Contract Agreement and supplemental  agreements thereto reference is hereby made
for a description of the respective rights, limitations of rights,  obligations,
duties and immunities  thereunder of the Agent,  the Company and the Holders and
of the terms upon which the Stripped Equity Units  Certificates  are, and are to
be, executed and delivered.

         Each Forward Purchase Contract evidenced hereby obligates the Holder of
this Stripped Equity Units Certificate to purchase,  and the Company to sell, on
the Stock Purchase Date at a price equal to $50 (the "Purchase Price"), a number
of shares of Common Stock of the Company equal to the Settlement  Rate,  unless,
on or prior to the Stock Purchase Date,  there shall have occurred a Termination
Event or an Early  Settlement  or Merger  Early  Settlement  with respect to the
Stripped  Equity Units of which such Forward  Purchase  Contract is a part.  The
"Settlement  Rate" is equal to (a) if the  Applicable  Market  Value (as defined
below) is greater than or equal to $[ ] (the "Threshold  Appreciation Price"), [
] shares of Common Stock per Forward  Purchase  Contract,  (b) if the Applicable
Market Value is less than the Threshold  Appreciation  Price but is greater than
$[ ], the number of shares of Common Stock per Forward  Purchase  Contract equal
to the  Stated  Amount of the  related  Stripped  Equity  Units  divided  by the
Applicable  Market Value and (c) if the Applicable  Market Value is less than or
equal $[ ], [ ] shares of Common Stock per Forward  Purchase  Contract,  in each
case  subject  to  adjustment  as  provided  in the  Forward  Purchase  Contract
Agreement.  No fractional  shares of Common Stock will be issued upon settlement
of Forward  Purchase  Contracts,  as provided in the Forward  Purchase  Contract
Agreement.

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

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

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

                                      B-5
<PAGE>

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

         Each Forward Purchase Contract evidenced hereby may be settled prior to
the Stock Purchase Date through Early Settlement or Merger Early Settlement, and
may be  settled on the Stock  Purchase  Date  through  Cash  Settlement,  all in
accordance with the terms of the Forward Purchase Contract Agreement.

         In  accordance  with  the  terms  of  the  Forward  Purchase   Contract
Agreement,  the Holder of this Stripped Equity Units  Certificate  shall pay the
Purchase Price for the shares of Common Stock purchased pursuant to each Forward
Purchase Contract evidenced hereby (i) by effecting an Early Settlement,  Merger
Early Settlement or Cash Settlement or (ii) by application of payments  received
in respect of the Pledged  Treasury  Securities  underlying the Stripped  Equity
Units represented by this Stripped Equity Units Certificate.

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

         The Stripped Equity Units  Certificates are issuable only in registered
form and  only in  denominations  of a  single  Stripped  Equity  Units  and any
integral multiple thereof. The transfer of any Stripped Equity Units Certificate
will be registered and Stripped  Equity Units  Certificates  may be exchanged as
provided in the Forward Purchase Contract  Agreement.  The Stripped Equity Units
Registrar  may require a Holder,  among  other  things,  to furnish  appropriate
endorsements and transfer  documents  permitted by the Forward Purchase Contract
Agreement.  No service  charge  shall be required for any such  registration  of
transfer or exchange, but the Company and the Agent may require payment of a sum
sufficient to cover any tax or other  governmental  charge payable in connection
therewith.  The Holder of a Stripped Equity Units may substitute for the Pledged
Treasury  Securities securing its obligations under the related Forward Purchase
Contract Notes or the appropriate Treasury Consideration or Applicable Ownership
Interest in the Treasury  Portfolio in accordance  with the terms of the Forward
Purchase  Contract  Agreement  and the  Pledge  Agreement.  From and after  such
substitution,   the  Units  for  which  such  Pledged  Notes,  Pledged  Treasury
Consideration or Pledged Applicable Ownership Interest in the Treasury Portfolio
secures the Holder's  obligation  under the Forward  Purchase  Contract shall be
referred to as an "Equity Unit." A Holder that elects to substitute Notes or the
appropriate  Treasury  Consideration  or  Applicable  Ownership  Interest in the
Treasury Portfolio, as the case may be, for Pledged Treasury Securities, thereby
reestablishing  Equity  Units,  shall be  responsible  for any fees or  expenses
payable in  connection  therewith.  Except as provided  in the Forward  Purchase
Contract  Agreement,  for so long as the Forward Purchase Contract  underlying a
Stripped Equity Unit remains in effect,  such Stripped Equity Units shall not be
separable  into its  constituent  parts,  and the rights and  obligations of the
Holder of such Stripped Equity Units in respect of the Pledged Treasury Security
and the Forward Purchase Contract constituting such Stripped Equity Units may be
transferred and exchanged only as a Stripped Equity Unit.

         Subject to the next succeeding paragraph, the Company shall pay on each
Payment Date, the Contract  Adjustment  Payments,  if any, payable in respect of
each Forward  Purchase  Contract

                                      B-6
<PAGE>

to the Person in whose name the  Stripped  Equity Units  Certificate  evidencing
such Forward  Purchase  Contract is  registered  at the close of business on the
Record Date for such Payment Date. Contract Adjustment Payments, if any, will be
payable  at the Office of the Agent in the City of New York or, at the option of
the Company,  by check mailed to the address of the Person  entitled  thereto at
such  address as it appears on the  Stripped  Equity  Units  Register or by wire
transfer  to the  account  designated  by such  Person in  writing at least five
Business Days prior to the applicable Payment Date.

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

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

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

                  In the event the  Company  exercises  its  option to defer the
payment of Contract  Adjustment  Payments,  then,  until the  Deferred  Contract
Adjustment  Payments  have been  paid,  the  Company  shall not  declare  or pay
dividends  on,  make  distributions  with  respect  to, or redeem,  purchase  or
acquire,  or make a liquidation payment with respect to, any of its Common Stock
other than (i) purchases,  redemptions or acquisitions of shares of Common Stock
in  connection  with any  employment  contract,  benefit  plan or other  similar
arrangement  with or for the benefit of  employees,  officers or  directors or a
stock purchase or dividend reinvestment plan, or the satisfaction by the Company
of its obligations  pursuant to any contract or security outstanding on the date
the Company exercises its rights to defer the Contract Adjustment Payments; (ii)
as a result of a reclassification of the Company's Capital Stock or the exchange
or conversion of one

                                      B-7
<PAGE>

class or series of the  Company's  Capital  Stock for another class or series of
the  Company's  Capital  Stock;  (iii) the purchase of  fractional  interests in
shares of any series of the Company's Common Stock pursuant to the conversion or
exchange  provisions  of such Common  Stock or the security  being  converted or
exchanged; (iv) dividends or distributions in any series of the Company's Common
Stock (or  rights to  acquire  Common  Stock) or  repurchases,  acquisitions  or
redemptions  of Common Stock in connection  with the issuance or exchange of any
series of Common  Stock (or  securities  convertible  into or  exchangeable  for
shares  of  the  Company's  Common  Stock;  or  (v)  redemptions,  exchanges  or
repurchases  of any rights  outstanding  under a shareholder  rights plan or the
declaration  or payment  thereunder  of a dividend  or  distribution  of or with
respect to rights in the future.

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

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

         The Holder of this Stripped Equity Units Certificate, by its acceptance
hereof,  authorizes  the Agent to enter into and  perform  the  related  Forward
Purchase Contracts forming part of the Stripped Equity Units evidenced hereby on
its  behalf as its  attorney-in-fact,  expressly  withholds  any  consent to the
assumption (i.e.,  affirmance) of the Forward Purchase  Contracts by the Company
or its trustee in the event that the Company becomes the subject of a case under
the  Bankruptcy  Code,  agrees to be bound by the terms  and  provisions  of the
Forward  Purchase  Contracts,  covenants  and  agrees to perform  such  Holder's
obligations under such Forward Purchase Contracts, consents to the provisions of
the Forward Purchase  Contract  Agreement,  irrevocably  authorizes the Agent to
enter  into  and  perform  the  Pledge  Agreement  on such  Holder's  behalf  as
attorney-in-fact,  and  consents  to and agrees to be bound by the Pledge of the
Treasury Securities  underlying this Stripped Equity Units Certificate  pursuant
to the Pledge Agreement,  provided, that upon a Termination Event, the rights of
the Holder of such Units under the  Forward  Purchase  Contract  may be enforced
without regard to any other rights or obligations.  The Holder further covenants
and  agrees,  that,  to the  extent and in the manner  provided  in the  Forward

                                      B-8
<PAGE>

Purchase Contract  Agreement and the Pledge Agreement,  but subject to the terms
thereof, payments in respect of the Pledged Treasury Securities, to be paid upon
settlement  of such  Holder's  obligations  to purchase  Common  Stock under the
Forward  Purchase  Contract,  shall be paid on the  Stock  Purchase  Date by the
Collateral  Agent to the Company in  satisfaction  of such Holder's  obligations
under such Forward  Purchase  Contract  and such Holder shall  acquire no right,
title or interest in such payments.

         The  Company and each  Holder of any Equity  Units or  Stripped  Equity
Units,  and each Beneficial Owner thereof,  by its acceptance  thereof or of its
interest  therein,  further  agrees to treat (i) the purchase of Equity Units as
the purchase of a unit consisting of the Purchase Contract and the Note and (ii)
itself as the owner of the related  Notes,  Treasury  Consideration  or Treasury
Securities, as the case may be.

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

         The Forward  Purchase  Contracts shall for all purposes be governed by,
and construed in  accordance  with,  the laws of the State of New York,  without
regard to its principles of conflicts of laws.

         The  Company,  the Agent and any agent of the  Company or the Agent may
treat the  Person in whose  name  this  Stripped  Equity  Units  Certificate  is
registered as the owner of the Stripped  Equity Units  evidenced  hereby for the
purpose of receiving any Contract  Adjustment Payments and any Deferred Contract
Adjustment  Payments,  performance of the Forward Purchase Contracts and for all
other  purposes  whatsoever  (subject  to the Record  Date  provisions  hereof),
whether or not any  payments in respect  thereof be overdue and  notwithstanding
any notice to the  contrary,  and neither the Company,  the Agent,  nor any such
agent shall be affected by notice to the contrary.

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

         A copy of the Forward  Purchase  Contract  Agreement is  available  for
inspection by any Holder at the Corporate Trust Office.

                                      B-9
<PAGE>

                                  ABBREVIATIONS

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

TEN COM -                      as tenants in common
UNIF GIFT MIN ACT -            Custodian
                               (cust)   (minor)
                               Under Uniform Gifts to Minors Act
                               (State)
TEN ENT -                      as tenants by the entireties
JT TEN -                       as joint tenants with right of survivorship and
                               not as tenants in common

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

                                      B-10
<PAGE>

                                   ASSIGNMENT

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

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

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

the within Stripped Equity Units Certificate and all rights  thereunder,  hereby
irrevocably constituting and appointing ____________________________ attorney to
transfer  said  Stripped  Equity  Units  Certificate  on the  books of  American
Electric Power Company, Inc. with full power of substitution in the premises.

Dated:                                      Signature:
       -----------------------                         -------------------------
                                  NOTICE:  The signature to this assignment must
                                  correspond  with the name as it  appears  upon
                                  the face of the within  Stripped  Equity Units
                                  Certificate  in  every   particular,   without
                                  alteration  or   enlargement   or  any  change
                                  whatsoever.

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

                                      B-11
<PAGE>

                             SETTLEMENT INSTRUCTIONS

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

Dated:                       Signature:
      -------------------               ----------------------------------------

                             Signature Guarantee:
                                                 -------------------------------
                                                 (if assigned to another person)

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

Name                                      Name

Address                                   Address

Social Security or other Taxpayer
Identification Number, if any

                                      B-12
<PAGE>

                            ELECTION TO SETTLE EARLY

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

Dated:                       Signature:
      -------------------               ----------------------------------------

                             Signature Guarantee:
                                                 -------------------------------
                                                 (if assigned to another person)

         Number of  Stripped  Equity  Units  evidenced  hereby as to which Early
Settlement of the related Forward Purchase Contracts is being elected:

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

NAME                                      NAME

Address                                   Address

Social Security or other Taxpayer
Identification Number, if any

         Transfer instructions for Pledged Treasury Securities transferable upon
Early Settlement or a Termination Event:

                                      B-13
<PAGE>

                     (TO BE ATTACHED TO GLOBAL CERTIFICATES)

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

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

<TABLE>
<CAPTION>
                                                                     Stated Amount of the
                   Amount of Decrease in    Amount of Increase in     Global Certificate
                   Stated Amount of the     Stated Amount of the        Following Such            Signature of
      Date          Global Certificate       Global Certificate      Decrease or Increase     Authorized Signatory
<S>                <C>                      <C>                       <C>                     <C>

</TABLE>

                                      B-14
<PAGE>

                                    EXHIBIT C

                INSTRUCTION FROM FORWARD PURCHASE CONTRACT AGENT

                               TO COLLATERAL AGENT

[ ]
[Address]
Attention:  Corporate Trust Department

Re:      EQUITY UNITS OF AMERICAN ELECTRIC POWER COMPANY, INC. (THE "COMPANY")

         We hereby  notify you in  accordance  with  Section  [4.1] [4.2] of the
Pledge Agreement, dated as of June [ ], 2002, (the "Pledge Agreement") among the
Company, you, as Collateral Agent,  Custodial Agent and Securities  Intermediary
and us, as  Forward  Purchase  Contract  Agent and as  attorney-in-fact  for the
holders of [Equity Units]  [Stripped  Equity Units] from time to time,  that the
Holder of Equity Units and Stripped Equity Units listed below (the "Holder") has
elected to substitute [$_____ aggregate  principal amount of Treasury Securities
(CUSIP No.  _____________)]  [$_______  aggregate  principal  amount of Notes or
$_____ aggregate principal amount of Treasury Consideration (CUSIP No. _____) or
the Applicable  Ownership  Interest in the Treasury  Portfolio,  as the case may
be,] in exchange for the related [Pledged Notes, Pledged Treasury  Consideration
or the  appropriate  Pledged  Applicable  Ownership  Interest  in  the  Treasury
Portfolio,  as the case may be,] [Pledged  Treasury  Securities]  held by you in
accordance  with the Pledge  Agreement and has delivered to us a notice  stating
that the Holder has  Transferred  [Treasury  Securities]  [Notes,  the  Treasury
Consideration or the appropriate  Applicable  Ownership Interest in the Treasury
Portfolio,  as the case may be,] to you, as Collateral Agent. We hereby instruct
you, upon receipt of such [Pledged Treasury  Securities] [Pledged Notes, Pledged
Treasury  Consideration or the appropriate Pledged Applicable Ownership Interest
in the Treasury  Portfolio,  as the case may be,],  and upon the payment by such
Holder of any applicable fees, to release the [Notes, the Treasury Consideration
or the appropriate  Applicable Ownership Interest in the Treasury Portfolio,  as
the case may be,] [Treasury Securities] related to such [Equity Units] [Stripped
Equity Units] to us in accordance  with the Holder's  instructions.  Capitalized
terms used herein but not defined shall have the meaning set forth in the Pledge
Agreement.

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

                                            [ ],
                                            AS FORWARD PURCHASE CONTRACT AGENT

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

                                       C-1
<PAGE>

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

Name:

Social Security or other Taxpayer
Identification Number, if any:

Address:

                                       C-2
<PAGE>

                                    EXHIBIT D

                 INSTRUCTION TO FORWARD PURCHASE CONTRACT AGENT

[ ],
as Forward Purchase Contract Agent
[Address]
Attention: Corporate Trust Department

Telecopy: [ ]

Re:  EQUITY UNITS OF AMERICAN ELECTRIC POWER COMPANY, INC. (THE "COMPANY")

The  undersigned  Holder  hereby  notifies you that it has  delivered to [ ], as
Collateral  Agent,   Custodial  Agent  and  Securities   Intermediary  [$_______
aggregate  principal amount of Treasury  Securities (CUSIP No.  ______________)]
[$_______  aggregate  principal  amount of Notes or $_____  principal  amount of
Treasury  Consideration  (CUSIP No. ) or the  appropriate  Applicable  Ownership
Interest in the  Treasury  Portfolio,  as the case may be] in  exchange  for the
related  [Pledged  Notes,  Pledged  Treasury  Consideration  or the  appropriate
Pledged Applicable Ownership Interest in the Treasury Portfolio, as the case may
be] [Pledged  Treasury  Securities] held by the Collateral  Agent, in accordance
with  Section  [4.1]  [4.2] of the Pledge  Agreement,  dated June [ ], 2002 (the
"Pledge  Agreement"),  among you,  the Company  and the  Collateral  Agent.  The
undersigned Holder has paid the Collateral Agent all applicable fees relating to
such  exchange.  The  undersigned  Holder  hereby  instructs you to instruct the
Collateral  Agent to  release  to you on behalf of the  undersigned  Holder  the
[Pledged  Notes,  Pledged  Treasury  Consideration  or the  appropriate  Pledged
Applicable  Ownership  Interest in the Treasury  Portfolio,  as the case may be]
[Pledged  Treasury  Securities]  related to such [Equity Units] [Stripped Equity
Units]. Capitalized terms used herein but not defined shall have the meaning set
forth in the Pledge Agreement.

Date:                                   Signature:
     ----------------------------                 ------------------------------

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

Please print name and address of Registered Holder:

Name:

Social Security or other Taxpayer Identification Number, if any:

Address:

                                       D-1
<PAGE>

                                    EXHIBIT E

                        NOTICE TO SETTLE BY SEPARATE CASH

[ ],
as Forward Purchase Contract Agent
[Address]
Attention: Corporate Trust Department

Telecopy: [ ]

Re:   EQUITY UNITS OF AMERICAN ELECTRIC POWER COMPANY, INC. (THE "COMPANY")

         The undersigned  Holder hereby  irrevocably  notifies you in accordance
with Section 5.4 of the Forward Purchase  Contract  Agreement dated as of June [
], 2002 among the Company and yourselves, as Forward Purchase Contract Agent and
as Attorney-in-Fact for the Holders of the Forward Purchase Contracts, that such
Holder has elected to pay to the Collateral Agent, on or prior to 11:00 a.m. New
York City time, on the Business Day  immediately  preceding  the Stock  Purchase
Date,  (in lawful money of the United States by [certified or cashiers check or]
wire transfer, in each case in immediately  available funds),  $_________ as the
Purchase  Price for the shares of Common  Stock  issuable  to such Holder by the
Company under the related Forward Purchase  Contract on the Stock Purchase Date.
The  undersigned  Holder hereby  instructs you to notify promptly the Collateral
Agent of the  undersigned  Holder's  election to make such cash  settlement with
respect to the Forward Purchase Contracts related to such Holder's Equity Units.

Date:                                   Signature:
     ----------------------------                 ------------------------------

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

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

Please print name and address of Registered Holder:

Social Security or other Taxpayer Identification Number, if any:

                                      F-1ASSIGNMENT OF LLC INTEREST

         Assignment  of  membership  interest in Prime  Resource  LLC from Prime
Resource  LLC,  a Utah  limited  Liabiity  Co.,  ("Prime"),  to  Andrew  Limpert
(Limpert) on this 10th day of January, 2002 in Salt Lake County, Utah.

                                    RECITALS

         WHEREAS,  Prime  acquired,  as of  January 1,  2002,  a 23%  membership
interest in Prime from Mr. William S. Campbell("Campbell");

         WHEREAS,  Prime has agreed to compensate Limpert with this LLC interest
for financial consulting and organizational services through the completion of a
proposed SB-2 offering of its shares,  subsequent to conversion from an LLC to a
corporation, to be filed later in 2002;

         WHEREAS,  the parties agree the Campbell  membership interest should be
valued at  $100,000  for  assignment  in  partial  satisfaction  of the  Limpert
services and the 26% corporate interest would be valued at $113,000;

         NOW THEREFORE, the parties initially agree and covenant as follows:

         Limpert is herewith  assigned the 23%  membership  interest  previously
owned by Campbell in Prime.  Prime and Limpert  understand  that Limpert has and
will continue to provide  financial  consulting and  organizational  services to
Prime  through  completion of a  reorganization  as a Utah  corporation  and the
filing of an SB-2 Registration Statement.  Limpert accepts such interest without
warranty, express or implied, except warranty of good title by Prime.

         Prime agrees to value the Limpert services at $113,000 and to issue not
less than 26% of the to be issued and outstanding  shares in a reorganized Prime
Corporation as subsequently  organized in complete  payment and discharge of its
obligation for payment of services to Limpert.

         DATED this 10th day January, 2002.

PRIME by its principal majority owners:

-----------------------------------         ---------------------------------
Terry Deru, Manager, Member                          Andrew Limpert

-----------------------------------
Scott Deru, Member

PRIME RESOURCES/Assign.Interest
                                       1

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