Document:

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                                                                     EXHIBIT 4.5

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                                  AT&T WIRELESS SERVICES, INC.

                                               AND

                                      THE BANK OF NEW YORK
                                           AS TRUSTEE

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

                                            INDENTURE

                                    DATED AS OF MARCH 6, 2001

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

                              7.350% SENIOR NOTES DUE MARCH 1, 2006

                              7.875% SENIOR NOTES DUE MARCH 1, 2011

                              8.750% SENIOR NOTES DUE MARCH 1, 2031

                              ====================================
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                                        TABLE OF CONTENTS

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                                            RECITALS

                                            ARTICLE 1
                           DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01.  Definitions......................................................................1
SECTION 1.02.  Rules of Construction...........................................................14

                                            ARTICLE 2
                                         THE SECURITIES

SECTION 2.01.  Form, Dating and Denominations; Legends.........................................15
SECTION 2.02.  Execution and Authentication; Exchange Securities;
         Additional Securities.................................................................16
SECTION 2.03.  Registrar, Paying Agent and Authenticating Agent; Paying
         Agent to Hold Money in Trust..........................................................17
SECTION 2.04.  Replacement Securities..........................................................18
SECTION 2.05.  Outstanding Securities..........................................................18
SECTION 2.06.  Temporary Securities............................................................19
SECTION 2.07.  Cancellation....................................................................19
SECTION 2.08.  CUSIP and CINS Numbers..........................................................19
SECTION 2.09.  Registration, Transfer and Exchange.............................................20
SECTION 2.10.  Restrictions on Transfer and Exchange...........................................23
SECTION 2.11.  Temporary Offshore Global Securities............................................24

                                            ARTICLE 3
                                           REDEMPTION

SECTION 3.01.  Optional Redemption.............................................................25
SECTION 3.02.  Redemption upon a Tax Event.....................................................25
SECTION 3.03.  Notice to Trustee...............................................................26
SECTION 3.04.  Selection of Securities to be Redeemed..........................................26
SECTION 3.05.  Notice of Redemption............................................................26
SECTION 3.06.  Effect of Notice of Redemption..................................................27
SECTION 3.07.  Deposit of Redemption Price.....................................................27
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                                            ARTICLE 4
                                            COVENANTS

SECTION 4.01.  Payment of Securities...........................................................28
SECTION 4.02.  Reports by the Company..........................................................29
SECTION 4.03.  Limitations on Liens............................................................29
SECTION 4.04.  Limitations on Sales and Leasebacks.............................................30
SECTION 4.05.  Waiver of Covenants.............................................................30
SECTION 4.06.  Additional Amounts..............................................................30

                                            ARTICLE 5
                                      SUCCESSOR CORPORATION

SECTION 5.01.  Consolidation, Merger, Sale or Conveyance.......................................32
SECTION 5.02.  Assumption and Substitution.....................................................33
SECTION 5.03.  Opinion of Counsel..............................................................33

                                            ARTICLE 6
                 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

SECTION 6.01.  Events of Default; Acceleration of Maturity; Waiver of
         Default...............................................................................34
SECTION 6.02.  Collection of Indebtedness by Trustee; Trustee May Prove
         Debt..................................................................................36
SECTION 6.03.  Application of Proceeds.........................................................38
SECTION 6.04.  Limitation on Suits by Securityholders..........................................39
SECTION 6.05.  Powers and Remedies Cumulative; Delay or Omission Not
         Waiver of Default.....................................................................39
SECTION 6.06.  Control by Securityholders; Waiver of Defaults..................................40
SECTION 6.07.  Right of Court to Require Filing of Undertaking to Pay
         Costs.................................................................................40

                                            ARTICLE 7
                                             TRUSTEE

SECTION 7.01.  Duties of Trustee...............................................................41
SECTION 7.02.  Rights of Trustee...............................................................42
SECTION 7.03.  Individual Rights of Trustee....................................................43
SECTION 7.04.  Trustee Disclaimer..............................................................43
SECTION 7.05.  Notice of Default...............................................................43
SECTION 7.06.  Reports by Trustee to Holders...................................................43
SECTION 7.07.  Compensation and Indemnity......................................................44
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SECTION 7.08.  Replacement of Trustee..........................................................44
SECTION 7.09.  Successor Trustee, Agents by Merger, etc........................................46
SECTION 7.10.  Eligibility; Disqualification...................................................46
SECTION 7.11.  Preferential Collection of Claims Against Company...............................46

                                            ARTICLE 8
                                     DISCHARGE OF INDENTURE

SECTION 8.01.  Satisfaction and Discharge of Indenture.........................................47
SECTION 8.02.  Defeasance upon Deposit of Moneys or U.S. Government
         Obligations...........................................................................47
SECTION 8.03.  Application of Moneys Deposited.................................................49
SECTION 8.04.  Repayment of Moneys Held........................................................49
SECTION 8.05.  Return of Moneys Unclaimed for Two Years........................................49
SECTION 8.06.  Indemnity for Government Obligations............................................49

                                            ARTICLE 9
                                     AMENDMENTS AND WAIVERS

SECTION 9.01.  Without Consent of Holders......................................................50
SECTION 9.02.  With Consent of Holders.........................................................50
SECTION 9.03.  Compliance with Trust Indenture Act.............................................51
SECTION 9.04.  Revocation and Effect of Consents...............................................51
SECTION 9.05.  Notation on or Exchange of Securities...........................................51
SECTION 9.06.  Trustee Protected...............................................................51

                                           ARTICLE 10
                                          MISCELLANEOUS

SECTION 10.01.  Trust Indenture Act............................................................52
SECTION 10.02.  Notices........................................................................52
SECTION 10.03.  Communication by Holders with Other Holders....................................53
SECTION 10.04.  Certificate and Opinion as to Conditions Precedent.............................53
SECTION 10.05.  Statements Required in Certificate or Opinion..................................54
SECTION 10.06.  Legal Holidays.................................................................54
SECTION 10.07.  Governing Law..................................................................54
SECTION 10.08.  No Adverse Interpretation of Other Agreements..................................54
SECTION 10.09.  No Recourse Against Others.....................................................54
SECTION 10.10.  When Treasury Securities Disregarded...........................................55
SECTION 10.11.  Rules by Trustee, Paying Agent, Registrar......................................55
SECTION 10.12.  Execution in Counterparts......................................................55
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SECTION 10.13.  Judgment Currency..............................................................55

                                            EXHIBITS

EXHIBIT A         Form of Security
EXHIBIT B         Restricted Legend
EXHIBIT C         DTC Legend
EXHIBIT D         Regulation S Certificate
EXHIBIT E         Rule 144A Certificate
EXHIBIT F         Certificate of Beneficial Ownership
EXHIBIT G         Temporary Offshore Global Security Legend
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<PAGE>   6
         INDENTURE, dated as of March 6, 2001, between AT&T Wireless Services,
Inc., a Delaware corporation, the Company, and The Bank of New York, a New York
banking corporation, as Trustee.

                                    RECITALS

         The Company has duly authorized the execution and delivery of the
Indenture to provide for the issuance of the Company's 7.350% Senior Notes Due
March 1, 2006 (the "2006 NOTES"), 7.875% Senior Notes Due March 1, 2011 (the
"2011 NOTES") and 8.750% Senior Notes Due March 1, 2031 (the "2031 NOTES"), and,
if and when issued, any Additional Securities, together with any Exchange
Securities issued therefor as provided herein (all of the foregoing being
collectively referred to herein as the "SECURITIES"). All things necessary to
make this Indenture a valid agreement of the Company, in accordance with its
terms, have been done, and the Company has done all things necessary to make the
Securities (in the case of the Additional Securities, when duly authorized),
when executed by the Company and authenticated and delivered by the Trustee and
duly issued by the Company, the valid obligations of the Company as hereinafter
provided.

         This Indenture is subject to, and will be governed by, the provisions
of the Trust Indenture Act that are required to be a part of and govern
indentures qualified under the Trust Indenture Act.

                            THIS INDENTURE WITNESSETH

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

                                    ARTICLE 1
                   DEFINITIONS AND INCORPORATION BY REFERENCE

         SECTION 1.01.  Definitions.

         "ADDITIONAL AMOUNTS" has the meaning ascribed to such term in Section
4.06(a).

         "ADDITIONAL INTEREST" means Additional Registration Rights Interest and
Additional Trigger Event Interest, if any.
<PAGE>   7
         "ADDITIONAL REGISTRATION RIGHTS INTEREST" means additional interest
owed to the Holders pursuant to a Registration Rights Agreement.

         "ADDITIONAL SECURITIES" means any Securities issued under this
Indenture in addition to the Original Securities, including any Exchange
Securities issued in exchange for such Additional Securities, having the same
terms in all respects as the Original Securities except that interest will
accrue on the Additional Securities from their date of issuance.

         "ADDITIONAL TRIGGER EVENT INTEREST" means additional interest owed to
the Holders pursuant to the terms of the Securities.

         "AFFILIATE" means any person directly or indirectly controlling or
controlled by, or under direct or indirect common control with, the Company.

         "AGENT" means any Authenticating Agent, Paying Agent or Registrar.

         "AGENT MEMBER" means a member of, or a participant in, the Depositary.

         "ATTRIBUTABLE DEBT" means, as of the date of its determination, the
present value (discounted semiannually at an interest rate implicit in the terms
of the lease) of the obligation of a lessee for rental payments pursuant to any
Sale and Leaseback Transaction (reduced by the amount of the rental obligations
of any sublessee of all or part of the same property) during the remaining term
of such Sale and Leaseback Transaction (including any period for which the lease
relating thereto has been extended), such rental payments not to include amounts
payable by the lessee for maintenance and repairs, insurance, taxes, laws,
assessments and similar charges and for contingent rents (such as those based on
sales), provided, however, that in the case of any Sale and Leaseback
Transaction in which the lease is terminable by the lessee upon the payment of a
penalty, Attributable Debt shall mean the lesser of the present value of (a) the
rental payments to be paid under such Sale and Leaseback Transaction until the
first date (after the date of such determination) upon which it may be so
terminated plus the then applicable penalty upon such termination and (b) the
rental payments required to be paid during the remaining term of such Sale and
Leaseback Transaction (assuming such termination provision is not exercised).

         "AUTHENTICATING AGENT" refers to a Person engaged to authenticate the
Securities in the stead of the Trustee.

         "AUTHORIZED NEWSPAPER" means a newspaper of general circulation, in the
official language of the country of publication or in the English language.
customarily published on each business day. Whenever successive weekly

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<PAGE>   8
publications in an Authorized Newspaper are required hereunder they may be
made (unless otherwise expressly provided herein) on the same or different days
of the week and in the same or different Authorized Newspapers. Initially, the
Authorized Newspaper in The City of New York shall be The Wall Street Journal,
and the Authorized Newspaper in Luxembourg shall be the Luxembourg Wort.

         "BOARD OF DIRECTORS" means the Board of Directors of the Company or any
duly authorized committee thereof.

         "BUSINESS DAY" means any day except a Saturday, Sunday or other day on
which commercial banks in New York City or in the city where the Corporate Trust
Office of the Trustee is located are authorized by law to close. "CORPORATE
TRUST OFFICE" means the office of the Trustee at which the corporate trust
business of the Trustee is principally administered.

         "CERTIFICATE OF BENEFICIAL OWNERSHIP" means a certificate substantially
in the form of Exhibit F.

         "CERTIFICATED SECURITY" means a Security in registered individual form
without interest coupons.

         "CLEARSTREAM" means Clearstream Banking SA.

         "COMPANY" means the party named as such in the first paragraph of this
Indenture or any successor obligor under this Indenture and the Securities
pursuant to Article 5.

         "COMPARABLE TREASURY ISSUE" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Securities to be redeemed that would be utilized, at
the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Securities. "INDEPENDENT INVESTMENT BANKER" means one of
the Reference Treasury Dealers appointed by the Company.

         "COMPARABLE TREASURY PRICE" means, with respect to any redemption date,
(1) the average of the Reference Treasury Dealer Quotations for such redemption
date after excluding the highest and lowest of such Reference Treasury Dealer
Quotations, or (2) if the Trustee obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such quotations. "REFERENCE
TREASURY DEALER QUOTATIONS" means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Trustee, of
the bid and asked prices for the Comparable Treasury Issue (expressed

                                       3
<PAGE>   9
in each case as a percentage of its principal amount) quoted in writing to the
Trustee by such Reference Treasury Dealer at 3:30 p.m., New York City time, on
the third business day preceding such redemption date.

         "CONSOLIDATED NET TANGIBLE ASSETS" means, at any date, the total assets
appearing in the most recently prepared consolidated balance sheet of the
Company and the Subsidiaries as of the end of the most recent fiscal quarter of
the Company for which such balance sheet is available, prepared in accordance
with generally accepted accounting principles, less (a) all current liabilities
as shown on such balance sheet and (b) Intangible Assets. "INTANGIBLE ASSETS"
means the value (net of any applicable reserves), as shown on or reflected in
such balance sheet, of: (i) all trade names, trademarks, licenses, patents,
copyrights and goodwill; (ii) organization costs; and (iii) deferred charges
(other than prepaid items such as insurance, taxes, interest, commissions, rents
and similar items and tangible assets being amortized); but in no event shall
the term "Intangible Assets" include product development cost.

         "DEFAULT" means any event which is, or after notice or passage of time
or both would be, an Event of Default.

         "DEPOSITARY" means the depositary of each Global Security, which will
initially be DTC.

         "DTC" means The Depository Trust Company, a New York corporation.

         "DTC LEGEND" means the legend set forth in Exhibit C.

         "EUROCLEAR" means Euroclear Bank S.A./N.V., and its successors or
assigns, as operator of the Euroclear System.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934.

         "EXCHANGE SECURITIES" means the Securities of the Company issued
pursuant to the Indenture in exchange for, and in an aggregate principal amount
equal to, the Initial Securities or any Initial Additional Securities in
compliance with the terms of a Registration Rights Agreement and containing
terms substantially identical to the Initial Securities or any Initial
Additional Securities (except that (i) such Exchange Securities will be
registered under the Securities Act and will not be subject to transfer
restrictions or bear the Restricted Legend, and (ii) the provisions relating to
Additional Registration Rights Interest will be eliminated).

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<PAGE>   10
         "EXCHANGE OFFER" means an offer by the Company to the Holders of the
Initial Securities or any Initial Additional Securities to exchange outstanding
Securities for Exchange Securities, as provided for in a Registration Rights
Agreement.

         "EXCHANGE OFFER REGISTRATION STATEMENT" means the Exchange Offer
Registration Statement as defined in a Registration Rights Agreement.

         "FUNDED DEBT" means any Indebtedness maturing by its terms more than
one year from the date of the determination thereof, including any Indebtedness
renewable or extendible at the option of the obligor to a date later than one
year from the date of determination thereof.

         "GAAP" means generally accepted accounting principles in the United
States of America as in effect from time to time.

         "GLOBAL SECURITY" means a Security in registered global form without
interest coupons.

         "HOLDER" or "SECURITYHOLDER" means the registered holder of any
Security.

         "INDEBTEDNESS" of any corporation means all indebtedness representing
money borrowed which is created, assumed, incurred or guaranteed in any manner
by such corporation or for which such corporation is otherwise responsible or
liable (whether by agreement to purchase indebtedness of, or to supply funds to
or invest in, others).

         "INDENTURE" means this Indenture as amended or supplemented from time
to time and shall include the forms and terms of the Securities established as
contemplated hereunder.

         "INITIAL ADDITIONAL SECURITIES" means Additional Securities issued in
an offering not registered under the Securities Act and any Securities issued in
replacement thereof, but not including any Exchange Securities issued in
exchange therefor.

         "INITIAL SECURITIES" means the Securities issued on the Issue Date and
any Securities issued in replacement thereof, but not including any Exchange
Securities issued in exchange therefor.

         "INITIAL PURCHASERS" means the initial purchasers party to a purchase
agreement with the Company relating to the sale of the Initial Securities by the
Company.

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<PAGE>   11
         "INTEREST", in respect of the Securities, unless the context otherwise
requires, refers to interest and Additional Interest, if any.

         "INTEREST PAYMENT DATE" means each March 1 and September 1 of each
year, commencing September 1, 2001.

         "ISSUE DATE" means the date on which the Original Securities are
originally issued under this Indenture.

         "NON-U.S. PERSON" means a Person that is not a U.S. person, as defined
in Regulation S.

         "LIEN" means any mortgage, pledge, security interest, lien, charge or
other encumbrance, but shall not include any of the foregoing types of
encumbrances that are incidental to the conduct of the business of the Company
or any Restricted Subsidiary or the ownership of the property and assets of any
of them and that were not incurred in connection with the incurrence of any
Indebtedness. Such incidental encumbrances that are to be excluded from the term
"Lien" include, without limitation: pledges or deposits made to secure
obligations of the Company or a Restricted Subsidiary under workmen's
compensation laws or similar legislation; liens imposed by law, such as
materialmen's, mechanics', carriers', workmen's, vendors', repairmen's, or other
like liens incurred in the ordinary course of business; governmental (federal,
state or municipal) liens arising out of contracts for the purchase of products
of the Company or a Restricted Subsidiary, and deposits or pledges to obtain the
release of any of the foregoing liens; liens created by or resulting from any
litigation or legal proceeding that is currently being contested in good faith
by an appropriate proceedings; leases made or existing on Principal Property
entered into in the ordinary course of business by the Company or a Restricted
Subsidiary; landlords' liens under leases of Principal Property to which the
Company or a Restricted Subsidiary is a party; zoning restrictions, easements,
licenses or restrictions on the use of Principal Property or minor
irregularities in the title thereto; deposits in connection with bids, tenders,
contracts (other than for the payment of money) to which the Company or any
Restricted Subsidiary is a party; deposits to secure public or statutory
obligations of the Company or any Restricted Subsidiary; deposits in connection
with obtaining or maintaining self-insurance or to obtain the benefits of any
law, regulation or arrangement pertaining to unemployment insurance, old age
pensions, social security or similar matters; deposits of cash or obligations of
the United States of America to secure surety, appeal or customs bonds to which
the Company or any Restricted Subsidiary is a party; and liens for taxes or
assessments or governmental charges or levies not yet due or delinquent, or
which can thereafter be paid without penalty, or which are being contested in
good faith by appropriate proceedings.

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<PAGE>   12
         "OFFICER" means the Chairman of the Board of Directors, any
Vice-Chairman of the Board of Directors, the President, any Vice-President
(whether or not designated by a number or numbers, or a word or words added
before or after the title Vice-President), the Treasurer, the Secretary or the
Controller of the Company.

         "OFFICERS' CERTIFICATE" means a certificate signed by two Officers or
by any Officer and an Assistant Treasurer or Assistant Secretary of the Company.

         "OFFSHORE GLOBAL SECURITY" means a Global Security representing
Securities issued and sold pursuant to Regulation S.

         "OPINION OF COUNSEL" means a written opinion of legal counsel who is
reasonably acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company or the Trustee.

         "ORIGINAL SECURITIES" means the Initial Securities and any Exchange
Securities issued in exchange therefor.

         "PAYING AGENT" refers to a Person engaged to perform the obligations of
the Trustee in respect of payments made or funds held hereunder in respect of
the Securities.

         "PERMANENT OFFSHORE GLOBAL SECURITY" means an Offshore Global Security
that does not bear the Temporary Offshore Global Security Legend.

         "PERSON" means an individual, a corporation, a partnership, a limited
liability company, an association, a trust or any other entity, including a
government or political subdivision or an agency or instrumentality thereof.

         "PRINCIPAL" whenever used with reference to the Securities or any
portion thereof shall be deemed to include "and premium, if any."

         "PRINCIPAL PROPERTY" means any land, land improvements, buildings and
associated factory, laboratory, office and switching equipment (excluding all
products marketed by the Company or any Subsidiary) constituting a manufacturing
facility, development facility, warehouse facility, service facility, office
facility or operating facility (including any portion thereof), which facility
(a) is owned by or leased to the Company or any Restricted Subsidiary, (b) is
located within the United States and (c) has an acquisition cost plus
capitalized improvements in excess of 0.25% of Consolidated Net Tangible Assets
as of the date of such determination, other than (i) any such facility, or
portion thereof, which has been financed by obligations issued by or on behalf
of a State, a Territory or a possession of the United States, or any political
subdivision of any

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<PAGE>   13
of the foregoing, or the District of Columbia, the interest on which is
excludable from gross income of the holders thereof (other than a "substantial
user" of such facility or a "related person" as those terms are used in Section
103 of the Internal Revenue code of 1986, as amended (the "CODE")) pursuant to
the provisions of Section 103 of the Code (or any similar provisions hereafter
enacted) as in effect at the time of issuance of such obligations, (ii) any such
facility which the Board of Directors may by resolution declare is not of
material importance to the Company and the Restricted Subsidiaries taken as a
whole and (iii) any such facility, or portion thereof, owned or leased jointly
or in common with one or more persons other than the Company and any Subsidiary
and in which the interest of the Company and all Subsidiaries does not exceed
50%.

         "REFERENCE TREASURY DEALER" means each of Merrill Lynch, Pierce, Fenner
& Smith Incorporated, Salomon Smith Barney Inc. plus three others of the initial
purchasers (as described in the offering memorandum dated March 1, 2001,
relating to the sale of the Securities) that are U.S. Government securities
dealers and their respective successors or, if any of the foregoing shall cease
to be a primary U.S. Government securities dealer (a "PRIMARY TREASURY DEALER"),
another nationally recognized investment banking firm that is a Primary Treasury
Dealer to be substituted by the Company.

         "REGISTER" has the meaning assigned to such term in Section 2.09.

         "REGISTRAR" means a Person engaged to maintain the Register.

         "REGISTRATION RIGHTS AGREEMENT" means (i) the Registration Rights
Agreement dated on or about the Issue Date between the Company and the Initial
Purchasers party thereto with respect to the Initial Securities, and (ii) with
respect to any Additional Securities, any registration rights agreements between
the Company and the Initial Purchasers party thereto relating to rights given by
the Company to the purchasers of Additional Securities to register such
Additional Securities or exchange them for Securities registered under the
Securities Act.

         "REGULAR RECORD DATE" for the interest payable on any Interest Payment
Date means the February 15 or August 15 (whether or not a Business Day) next
preceding such Interest Payment Date.

         "REGULATION S" means Regulation S under the Securities Act.

         "REGULATION S CERTIFICATE" means a certificate substantially in the
form of Exhibit D hereto.

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<PAGE>   14
         "REMAINING SCHEDULED PAYMENTS" means, with respect to each Security to
be redeemed, the remaining scheduled payments of principal of and interest on
such Security that would be due after the related redemption date but for such
redemption. If such redemption date is not an interest payment date with respect
to such Security, the amount of the next succeeding scheduled interest payment
on such Security will be reduced by the amount of interest accrued on such
Security to such redemption date.

         "RESPONSIBLE OFFICER", when used with respect to the Trustee, shall
mean any vice-president, any trust officer, any assistant vice-president or any
other officer or assistant officer of the Trustee customarily performing
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 a particular subject.

         "RESTRICTED LEGEND" means the legend set forth in Exhibit B.

         "RESTRICTED PERIOD" means the relevant 40-day distribution compliance
period as defined in Regulation S.

         "RESTRICTED SUBSIDIARY" means (a) any Subsidiary (i) which has
substantially all its property within the United States of America, (ii) which
owns or is a lessee of any Principal Property, and (iii) in which the investment
of the Company and all other Subsidiaries exceeds 0.25% of Consolidated Net
Tangible Assets as of the date of such determination; provided, however, that
the term "Restricted Subsidiary" shall not include (A) any Subsidiary (x)
primarily engaged in the business of purchasing, holding, collecting, servicing
or otherwise dealing in and with installment sales contracts, leases, trust
receipts, mortgages, commercial paper or other financing instruments and any
collateral or agreements relating thereto, including in the business,
individually or through partnerships, of financing (whether through long- or
short-term borrowings, pledges, discounts or otherwise) the sales, leasing or
other operations of the Company and the Subsidiaries or any of them, or (y)
engaged in the business of financing the assets and operations of third parties;
provided that notwithstanding (x) and (y) above, such Subsidiary shall be a
Restricted Subsidiary if it owns, leases or operates any property which would
qualify as Principal Property except as incidental to such financing business;
or (B) any Subsidiary acquired or organized after April 26, 2000 for the purpose
of acquiring the stock or business or assets of any person other than the
Company or any Restricted Subsidiary, whether by merger, consolidation,
acquisition of stock or assets or similar transaction analogous in purpose or
effect, so long as such Subsidiary does not acquire by merger, consolidation,
acquisition of stock or assets or similar transactions analogous in purpose or
effect all or any substantial part of the business or assets of the

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<PAGE>   15
Company or any Restricted Subsidiary; and (b) any other Subsidiary which is
hereafter designated by the Board of Directors as a Restricted Subsidiary.

         "RULE 144A" means Rule 144A under the Securities Act.

         "RULE 144A CERTIFICATE" means (i) a certificate substantially in the
form of Exhibit E hereto or (ii) a written certification addressed to the
Company and the Trustee to the effect that the Person making such certification
(x) is acquiring such Security (or beneficial interest) for its own account or
one or more accounts with respect to which it exercises sole investment
discretion and that it and each such account is a qualified institutional buyer
within the meaning of Rule 144A, (y) is aware that the transfer to it or
exchange, as applicable, is being made in reliance upon the exemption from the
provisions of Section 5 of the Securities Act provided by Rule 144A, and (z)
acknowledges that it has received such information regarding the Company as it
has requested pursuant to Rule 144A(d)(4) or has determined not to request such
information.

         "SALE AND LEASEBACK TRANSACTION" means any arrangement with any person
providing for the leasing by the Company or any Restricted Subsidiary of any
Principal Property (whether such Principal Property is now owned or hereafter
acquired) that has been or is to be sold or transferred by the Company or such
Restricted Subsidiary to such person, other than (a) temporary leases for a
term, including renewals at the option of the lessee, of not more than three
years; (b) leases between the Company and a Restricted Subsidiary or between
Restricted Subsidiaries; and (c) leases of Principal Property executed by the
time of, or within 180 days after the latest of, the acquisition, the completion
of construction or improvement (including any improvements on property which
will result in such property becoming Principal Property), or the commencement
of commercial operation of such Principal Property.

         "SEC" means the Securities and Exchange Commission.

         "SECURED INDEBTEDNESS" means (a) Indebtedness of the Company or a
Restricted Subsidiary which is secured by any Lien upon any Principal Property
or Restricted Securities and (b) Indebtedness of the Company or a Restricted
Subsidiary in respect of any conditional sale or other title retention agreement
covering Principal Property or Restricted Securities; but "Secured Indebtedness"
shall not include any of the following:

                  (i) Indebtedness of the Company and the Restricted
         Subsidiaries outstanding on April 26, 2000, secured by then existing
         Liens upon, or incurred in connection with conditional sales agreements
         or other title retention agreements with respect to, Principal Property
         or Restricted Securities;

                                       10
<PAGE>   16
                  (ii) Indebtedness which is secured by (A) purchase money Liens
         upon Principal Property or Restricted Securities acquired after April
         26, 2000, or (B) Liens placed on Principal Property after April 26,
         2000, during construction or improvement thereof (including any
         improvements on property which will result in such property becoming
         Principal Property) or placed thereon within 180 days after the later
         of acquisition, completion of construction or improvement or the
         commencement of commercial operation of such Principal Property or
         improvement, or placed on Restricted Securities acquired after April
         26, 2000, or (C) conditional sale agreements or other title retention
         agreements with respect to any Principal Property or Restricted
         Securities acquired after April 26, 2000 if (in each case referred to
         is this subparagraph (ii)) (x) such Lien or agreement secures all or
         any part of the Indebtedness incurred for the purpose of financing all
         or any part of the purchase price or cost of construction of such
         Principal Property or improvement or Restricted Securities and (y) such
         Lien or agreement does not extend to any Principal Property or
         Restricted Securities other than the Principal Property or Restricted
         Securities so acquired or the Principal Property, or portion thereof,
         on which the property so constructed, or such improvement is located;
         provided, however, that the amount by which the aggregate principal
         amount of Indebtedness secured by any such Lien or agreement exceeds
         the cost to the Company or such Restricted Subsidiary of the related
         acquisition, construction or improvement shall be considered to be
         "Secured Indebtedness";

                  (iii) Indebtedness which is secured by Liens on Principal
         Property or Restricted Securities, which Liens exist at the time of
         acquisition (by any manner whatsoever) of such Principal Property or
         Restricted Securities by the Company or a Restricted Subsidiary;

                  (iv) Indebtedness of Restricted Subsidiaries owing to the
         Company or any other Restricted Subsidiary and Indebtedness of the
         Company owing to any Restricted Subsidiary;

                  (v) in the case of any corporation which becomes (by any
         manner whatsoever) a Restricted Subsidiary after April 26, 2000,
         Indebtedness which is secured by Liens upon, or conditional sale
         agreements or other title retention agreements with respect to, its
         property which constitutes Principal Property or Restricted Securities,
         which Liens exist at the time such corporation becomes a Restricted
         Subsidiary;

                  (vi) guarantees by the Company of Secured Indebtedness and
         Attributable Debt of any Restricted Subsidiaries and guarantees by a

                                       11
<PAGE>   17
         Restricted Subsidiary of Secured Indebtedness and Attributable Debt of
         the Company and any other Restricted Subsidiaries;

                  (vii) Indebtedness arising from any Sale and Leaseback
         Transaction;

                  (viii) Indebtedness secured by Liens on property of the
         Company or a Restricted Subsidiary in favor of the United States of
         America, any State, Territory or possession thereof, or the District of
         Columbia, or any department, agency or instrumentality or political
         subdivision of the United States of America or any State, Territory or
         possession thereof, or the District of Columbia, or in favor of any
         other country or any political subdivision thereof, if such
         Indebtedness was incurred for the purpose of financing all or any part
         of the purchase price or the cost of construction of the property
         subject to such Liens; provided, however, that the amount by which the
         aggregate principal amount of Indebtedness secured by any such Lien
         exceeds the cost to the Company or such Restricted Subsidiary of the
         related acquisition or construction shall be considered to be "Secured
         Indebtedness"; and

                  (ix) the replacement, extension or renewal (or successive
         replacements, extensions or renewals) of any Indebtedness (in whole or
         in part) excluded from the definition of "Secured Indebtedness" by
         subparagraphs (i) through (viii) above; provided, however, that no Lien
         securing, or conditional sale or title retention agreement with respect
         to, such Indebtedness shall extend to or cover any Principal Property
         or any Restricted Securities, other than such property which secured
         the Indebtedness so replaced, extended or renewed (plus improvements on
         or to any such Principal Property); provided further, however, that to
         the extent that such replacement, extension or renewal increases the
         principal amount of Indebtedness secured by such Lien or is in a
         principal amount in excess of the principal amount of Indebtedness
         excluded from the definition of "Secured Indebtedness" by subparagraphs
         (i) through (viii) above, the amount of such increase or excess shall
         be considered to be "Secured Indebtedness".

                  In no event shall the foregoing provisions be interpreted to
mean or their operation to cause the same Indebtedness to be included more than
once is the calculation of "Secured Indebtedness" as that term is used in this
Indenture.

         "SECURITIES" has the meaning assigned to such term in the Recitals.

         "SECURITIES ACT" means the Securities Act of 1933.

                                       12
<PAGE>   18
         "SHELF REGISTRATION STATEMENT" means the Shelf Registration Statement
as defined in a Registration Rights Agreement.

         "STATED MATURITY" means (i) with respect to any Indebtedness, the date
specified as the fixed date on which the final installment of principal of such
Indebtedness is due and payable or (ii) with respect to any scheduled
installment of principal of or interest on any Indebtedness, the date specified
as the fixed date on which such installment is due and payable as set forth in
the documentation governing such Indebtedness, not including any contingent
obligation to repay, redeem or repurchase prior to the regularly scheduled date
for payment.

         "SUBSIDIARY" means any corporation a majority of the Voting Shares of
which are at the time owned or controlled, directly or indirectly, by the
Company or by one or more Subsidiaries, or by the Company and one or more
Subsidiaries.

         "TEMPORARY OFFSHORE GLOBAL SECURITY" means an Offshore Global Security
that bears the Temporary Offshore Global Security Legend.

         "TEMPORARY OFFSHORE GLOBAL SECURITY LEGEND" means the legend set forth
in Exhibit G.

         "TIA" means the Trust Indenture Act.

         "TREASURY RATE" means, with respect to any redemption date, the rate
per annum equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date.

         "TRUSTEE" means the party named as such in this Indenture until a
successor replaces it and thereafter means the successor.

         "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939.

         "U.S. GLOBAL SECURITY" means a Global Security that bears the
Restricted Legend representing Securities issued and sold pursuant to Rule 144A.

         "U.S. GOVERNMENT OBLIGATIONS" means:

         (i)      direct obligations of the United States of America for the
                  payment of which the full faith and credit of the United
                  States of America is pledged; or

                                       13
<PAGE>   19
         (ii)     obligations of a person controlled or supervised by and acting
                  as an agency or instrumentality of the United States of
                  America, the payment of which is unconditionally guaranteed as
                  a full faith and credit obligation for the United States of
                  America.

         "U.S. HOLDER" means a beneficial owner of a Security that is, for
United States federal income tax purposes, (a) a citizen or resident of the
United States, (b) a corporation, partnership or other entity created or
organized in or under the laws of the United States or of any political
subdivision thereof, (c) an estate or trust the income of which is subject to
United States federal income taxation regardless of its source or (d) any other
Person whose income from a Security is effectively connected with the conduct of
a United States trade or business.

         "VOTING SHARES" means as to shares of a particular corporation,
outstanding shares of stock of any class of such corporation entitled to vote in
the election of directors, excluding shares entitled so to vote only upon the
happening of some contingency.

         SECTION 1.02.  Rules of Construction.   Unless the context otherwise
requires or except as otherwise expressly provided,

                  (1) a term has the meaning assigned to it;

                  (2) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with generally accepted accounting
         principles, and, except as may otherwise be herein expressly provided,
         the term "generally accepted accounting principles" with respect to any
         computation required or permitted hereunder shall mean such accounting
         principles as are generally accepted at the date of such computation;

                  (3) "or" is not exclusive;

                  (4) words in the singular include the plural, and words in the
         plural include the singular;

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

                  (6) all references to Sections or Articles or Exhibits refer
         to Sections or Articles or Exhibits of or to this Indenture unless
         otherwise indicated;

                                       14
<PAGE>   20
                  (7) references to agreements or instruments, or to statutes or
         regulations, are to such agreements or instruments, or statutes or
         regulations, as amended from time to time (or to successor statutes and
         regulations); and

                  (8) in the event that a transaction meets the criteria of more
         than one category of permitted transactions or listed exceptions the
         Company may classify such transaction as it, in its sole discretion,
         determines.

                                    ARTICLE 2
                                 THE SECURITIES

         SECTION 2.01. Form, Dating and Denominations; Legends. (a) The
Securities and the Trustee's certificate of authentication will be substantially
in the form attached as Exhibit A. The terms and provisions contained in the
form of the Securities annexed as Exhibit A constitute, and are hereby expressly
made, a part of this Indenture. The Securities may have notations, legends or
endorsements required by law, rules of or agreements with national securities
exchanges to which the Company is subject, or usage. Each Security will be dated
the date of its authentication. The Securities will be issuable in denominations
of $1,000 in principal amount and any multiple of $1,000 in excess thereof.

          (b) (1) Except as otherwise provided in paragraph (c), Section 2.10(e)
or Section 2.09(b)(4), each Initial Security or Initial Additional Security
(other than a Permanent Offshore Security) will bear the Restricted Legend.

           (2) Each Global Security, whether or not an Initial Security or
         Additional Security, will bear the DTC Legend.

           (3)  Each Temporary Offshore Global Security will bear the
         Temporary Offshore Global Security Legend.

           (4) Initial Securities and Initial Additional Securities offered and
         sold in reliance on Regulation S will be issued as provided in Section
         2.11(a).

           (5) Exchange Securities will be issued, subject to Section 2.09(b),
         in the form of one or more Global Securities.

          (c) (1) If the Company determines (upon the advice of counsel and such
other certifications and evidence as the Company may reasonably require) that a

                                       15
<PAGE>   21
Security is eligible for resale pursuant to Rule 144(k) under the Securities Act
(or a successor provision) and that the Restricted Legend is no longer necessary
or appropriate in order to ensure that subsequent transfers of the Security (or
a beneficial interest therein) are effected in compliance with the Securities
Act, or

           (2)  after an Initial Security or an Initial Additional Security is

                        (x) sold pursuant to an effective registration statement
                  under the Securities Act, pursuant to the Registration Rights
                  Agreement or otherwise, or (y) is validly tendered for
                  exchange into an Exchange Security pursuant to an Exchange
                  Offer

the Company may instruct the Trustee to cancel the Security and issue to the
Holder thereof (or to its transferee) a new Security of like tenor and amount,
registered in the name of the Holder thereof (or its transferee), that does not
bear the Restricted Legend, and the Trustee will comply with such instruction.

          (d) By its acceptance of any Security bearing the Restricted Legend
(or any beneficial interest in such a Security), each Holder thereof and each
owner of a beneficial interest therein acknowledges the restrictions on transfer
of such Security (and any such beneficial interest) set forth in this Indenture
and in the Restricted Legend and agrees that it will transfer such Security (and
any such beneficial interest) only in accordance with this Indenture and such
legend.

         SECTION 2.02. Execution and Authentication; Exchange Securities;
Additional Securities. (a) An Officer shall execute the Securities for the
Company by facsimile or manual signature in the name and on behalf of the
Company. If an Officer whose signature is on a Security no longer holds that
office at the time the Security is authenticated, the Security will still be
valid.

          (b) A Security will not be valid until the Trustee manually signs the
certificate of authentication on the Security, with the signature conclusive
evidence that the Security has been authenticated under this Indenture.

          (c) At any time and from time to time after the execution and delivery
of this Indenture, the Company may deliver Securities executed by the Company to
the Trustee for authentication. The Trustee will authenticate and deliver

                  (i) Initial Securities for original issue in the aggregate
         principal amounts specified by the Company,

                  (ii) Initial Additional Securities from time to time for
         original issue in aggregate principal amounts specified by the Company,
         and

                                       16
<PAGE>   22
                  (iii) Exchange Securities from time to time for issue in
         exchange for a like principal amount of Initial Securities or Initial
         Additional Securities

after the following conditions have been met:

           (1)  Receipt by the Trustee of an Officers' Certificate specifying

                           (A) the amount of Securities to be authenticated and
                  the date on which the Securities are to be authenticated,

                           (B) whether the Securities are to be Initial
                  Securities or Additional Securities or Exchange Securities,
                  and

                           (C) other information the Company may determine to
                  include or the Trustee may reasonably request.

           (2) In the case of Initial Additional Securities, receipt by the
         Trustee of an Opinion of Counsel confirming that the Holders of the
         outstanding Securities will be subject to federal income tax in the
         same amounts, in the same manner and at the same times as would have
         been the case if such Additional Securities were not issued.

           (3) In the case of Exchange Securities, effectiveness of an Exchange
         Offer Registration Statement and consummation of the exchange offer
         thereunder (and receipt by the Trustee of an Officers' Certificate to
         that effect). Initial Securities or Initial Additional Securities
         exchanged for Exchange Securities will be cancelled by the Trustee.

         SECTION 2.03. Registrar, Paying Agent and Authenticating Agent; Paying
Agent to Hold Money in Trust. (a) The Company may appoint one or more Registrars
and one or more Paying Agents, and the Trustee may appoint an Authenticating
Agent, in which case each reference in this Indenture to the Trustee in respect
of the obligations of the Trustee to be performed by that Agent will be deemed
to be references to the Agent. The Company may act as Registrar or (except for
purposes of Article 8) Paying Agent. In each case the Company and the Trustee
will enter into an appropriate agreement with the Agent implementing the
provisions of this Indenture relating to the obligations of the Trustee to be
performed by the Agent and the related rights.

          (b) The Company will require each Paying Agent other than the Trustee
to agree in writing that the Paying Agent will hold in trust for the benefit of
the Holders or the Trustee all money held by the Paying Agent for the payment of
principal of and interest on the Securities and will promptly notify the Trustee
of

                                       17
<PAGE>   23
any default by the Company in making any such payment. The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee and
account for any funds disbursed, and the Trustee may at any time during the
continuance of any payment default, upon written request to a Paying Agent,
require the Paying Agent to pay all money held by it to the Trustee and to
account for any funds disbursed. Upon doing so, the Paying Agent will have no
further liability for the money so paid over to the Trustee.

          (c) For so long as the Securities are listed on the Luxembourg Stock
Exchange, the Company will appoint a Paying Agent in Luxembourg.

          (d) The Company shall maintain in the Borough of Manhattan, the City
of New York, State of New York an office or agency where Securities may be
surrendered for registration of transfer or exchange or for presentation for
payment and where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. The Company hereby initially
designates the Corporate Trust Office of the Trustee as such office of the
Company. The Company will give prompt notice to the Trustee of the location, and
any change in location, of such office or agency. If at any time the Company
fails to maintain any such required office or agency or fails to furnish the
Trustee with the address thereof, such presentations and surrenders may be made
or served to the Trustee. The Company may also from time to time designate one
or more other offices or agencies where the Securities may be surrendered or
presented for any of such purposes and may from time to time rescind such
designations. The Company will give prompt notice to the Trustee of any such
designation or recission and of any change in the location of any such other
office or agency.

         SECTION 2.04. Replacement Securities. If a mutilated Security is
surrendered to the Trustee or if a Holder claims that its Security has been
lost, destroyed or wrongfully taken, the Company will issue and the Trustee will
authenticate a replacement Security of like tenor and principal amount and
bearing a number not contemporaneously outstanding. Every replacement Security
is an additional obligation of the Company and entitled to the benefits of this
Indenture. An indemnity must be furnished that is sufficient in the judgment of
both the Trustee and the Company to protect the Company and the Trustee from any
loss they may suffer if a Security is replaced. The Company may charge the
Holder for the expenses of the Company and the Trustee in replacing a Security.
In case the mutilated, lost, destroyed or wrongfully taken Security has become
or is about to become due and payable, the Company in its discretion may pay the
Security instead of issuing a replacement Security.

         SECTION 2.05. Outstanding Securities. (a) Securities outstanding at any
time are all Securities that have been authenticated by the Trustee except for

                                       18
<PAGE>   24
                  (1) Securities cancelled by the Trustee or delivered to it for
         cancellation;

                  (2) any Security which has been paid pursuant to Section 2.04
         and any Security which has been replaced pursuant to Section 2.04
         unless and until the Trustee and the Company receive proof satisfactory
         to them that the replaced Security is held by a bona fide purchaser;
         and

                  (3) on or after the maturity date or any redemption date,
         those Securities payable or to be redeemed or purchased on that date
         for which the Trustee (or Paying Agent, other than the Company or an
         Affiliate of the Company) holds money sufficient to pay all amounts
         then due.

         (b) Subject to Section 10.10, a Security does not cease to be
outstanding because the Company or one of its Affiliates holds the Security

         SECTION 2.06. Temporary Securities. Until definitive Securities are
ready for delivery, the Company may prepare and the Trustee will authenticate
temporary Securities. Temporary Securities will be substantially in the form of
definitive Securities but may have insertions, substitutions, omissions and
other variations determined to be appropriate by the Officer executing the
temporary Securities, as evidenced by the execution of the temporary Securities.
If temporary Securities are issued, the Company will cause definitive Securities
to be prepared without unreasonable delay. After the preparation of definitive
Securities, the temporary Securities will be exchangeable for definitive
Securities upon surrender of the temporary Securities at the office or agency of
the Company designated for the purpose pursuant to Section 2.03(c), without
charge to the Holder. Upon surrender for cancellation of any temporary
Securities the Company will execute and the Trustee will authenticate and
deliver in exchange therefor a like principal amount of definitive Securities of
authorized denominations. Until so exchanged, the temporary Securities will be
entitled to the same benefits under this Indenture as definitive Securities.

         SECTION 2.07. Cancellation. The Company at any time may deliver to the
Paying Agent for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner
whatsoever, and may deliver to the Paying Agent for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold.
Any Registrar or the Trustee will forward to the Paying Agent any Securities
surrendered to it for transfer, exchange or payment. The Paying Agent will
cancel all Securities surrendered for transfer, exchange, payment or
cancellation and deliver them to the Trustee to be disposed of in accordance
with the Trustee's normal procedures or the written instructions of the Company;
provided that the Trustee may not be required to destroy such Securities. The
Company may not

                                       19
<PAGE>   25
issue new Securities to replace Securities it has paid in full or delivered to
the Paying Agent for cancellation.

         SECTION 2.08.  CUSIP and CINS Numbers.  The Company in issuing the
Securities may use "CUSIP" and "CINS" numbers, and the Trustee will use
CUSIP numbers or CINS numbers in notices of redemption or exchange as a
convenience to Holders, the notice to state that no representation is made as to
the correctness of such numbers either as printed on the Securities or as
contained in any notice of redemption or exchange. The Company will promptly
notify the Trustee of any change in the CUSIP or CINS numbers.

         SECTION 2.09. Registration, Transfer and Exchange. (a) The Securities
will be issued in registered form only, without coupons. Except under the
circumstances described paragraph (b)(4), the Securities will be issued in
global form only. The Company shall cause the Trustee to maintain a register
(the "REGISTER") of the Securities, for registering the record ownership of the
Securities by the Holders and transfers and exchanges of the Securities.

               (b)(1) Each Global Security will be registered in the name of
         the Depositary or its nominee and, so long as DTC is serving as the
         Depositary thereof, will bear the DTC Legend.

                  (2) Each Global Security will be delivered to the Trustee as
         custodian for the Depositary. Transfers of a Global Security (but not a
         beneficial interest therein) will be limited to transfers thereof in
         whole, but not in part, to the Depositary, its successors or their
         respective nominees, except (1) as set forth in Section 2.09(b)(4) and
         (2) transfers of portions thereof in the form of Certificated
         Securities may be made upon request of an Agent Member (for itself or
         on behalf of a beneficial owner) by written notice given to the Trustee
         by or on behalf of the Depositary in accordance with customary
         procedures of the Depositary and in compliance with this Section and
         Section 2.10.

                  (3) Agent Members will have no rights under this Indenture
         with respect to any Global Security held on their behalf by the
         Depositary, and the Depositary may be treated by the Company, the
         Trustee and any agent of the Company or the Trustee as the absolute
         owner and Holder of such Global Security for all purposes whatsoever.
         Notwithstanding the foregoing, the Depositary or its nominee may grant
         proxies and otherwise authorize any Person (including any Agent Member
         and any Person that holds a beneficial interest in a Global Security
         through an Agent Member) to take any action which a Holder is entitled
         to take under this Indenture or the Securities, and nothing herein will
         impair, as between the Depositary

                                       20
<PAGE>   26
         and its Agent Members, the operation of customary practices governing
         the exercise of the rights of a holder of any security.

                  (4) If (x) the Depositary notifies the Company that it is
         unwilling or unable to continue as Depositary for a Global Security and
         a successor depositary is not appointed by the Company within 90 days
         of the notice or (y) an Event of Default has occurred and is continuing
         and the Trustee has received a request from the Depositary, the Trustee
         will promptly exchange each beneficial interest in the Global Security
         for one or more Certificated Securities in authorized denominations
         having an equal aggregate principal amount registered in the name of
         the owner of such beneficial interest, as identified to the Trustee by
         the Depositary, and thereupon the Global Security will be deemed
         canceled. If such Security does not bear the Restricted Legend, then
         the Certificated Securities issued in exchange therefor will not bear
         the Restricted Legend. If such Security bears the Restricted Legend,
         then the Certificated Securities issued in exchange therefor will bear
         the Restricted Legend, provided that any Holder of any such
         Certificated Security issued in exchange for a beneficial interest in a
         Temporary Offshore Global Security will have the right upon
         presentation to the Trustee of a duly completed Certificate of
         Beneficial Ownership after the Restricted Period to exchange such
         Certificated Security for a Certificated Security of like tenor and
         amount that does not bear the Restricted Legend, registered in the name
         of such Holder.

          (c)   Each Certificated Security will be registered in the name of the
holder thereof or its nominee.

          (d) A Holder may transfer a Security (or a beneficial interest
therein) to another Person or exchange a Security (or a beneficial interest
therein) for another Security or Securities of any authorized denomination by
presenting to the Trustee a written request therefor stating the name of the
proposed transferee or requesting such an exchange, accompanied by any
certification, opinion or other document required by Section 2.10. The Trustee
will promptly register any transfer or exchange that meets the requirements of
this Section by noting the same in the Register maintained by the Trustee for
the purpose; provided that

                  (x) no transfer or exchange will be effective until it is
         registered in such Register and

                  (y) the Trustee will not be required (i) to issue, register
         the transfer of or exchange any Security for a period of 15 days before
         a selection of Securities to be redeemed, (ii) to register the transfer
         of or exchange any Security so selected for redemption in whole or in
         part,

                                       21
<PAGE>   27
         except, in the case of a partial redemption, that portion of any
         Security not being redeemed, or (iii) if a redemption is to occur after
         a Regular Record Date but on or before the corresponding Interest
         Payment Date, to register the transfer of or exchange any Security on
         or after the Regular Record Date and before the date of redemption.
         Prior to the registration of any transfer, the Company, the Trustee and
         their agents will treat the Person in whose name the Security is
         registered as the owner and Holder thereof for all purposes (whether or
         not the Security is overdue), and will not be affected by notice to the
         contrary.

         From time to time the Company will execute and the Trustee will
authenticate additional Securities as necessary in order to permit the
registration of a transfer or exchange in accordance with this Section.

         No service charge will be imposed in connection with any transfer or
exchange of any Security, but the Company may require payment of a sum
sufficient to cover any taxes or other governmental charges payable in
connection therewith (other than any taxes or other governmental charges payable
upon exchange pursuant to paragraph (b)(4)).

                  (e) (1) Global Security to Global Security. If a beneficial
         interest in a Global Security is transferred or exchanged for a
         beneficial interest in another Global Security, the Trustee will (x)
         record a decrease in the principal amount of the Global Security being
         transferred or exchanged equal to the principal amount of such transfer
         or exchange and (y) record a like increase in the principal amount of
         the other Global Security. Any beneficial interest in one Global
         Security that is transferred to a Person who takes delivery in the form
         of an interest in another Global Security, or exchanged for an interest
         in another Global Security, will, upon transfer or exchange, cease to
         be an interest in such Global Security and become an interest in the
         other Global Security and, accordingly, will thereafter be subject to
         all transfer and exchange restrictions, if any, and other procedures
         applicable to beneficial interests in such other Global Security for as
         long as it remains such an interest.

                  (2) Certificated Security to Certificated Security. If a
         Certificated Security is transferred or exchanged for another
         Certificated Security, the Trustee will (x) cancel the Certificated
         Security being transferred or exchanged, (y) deliver one or more new
         Certificated Securities in authorized denominations having an aggregate
         principal amount equal to the principal amount of such transfer or
         exchange to the transferee (in the case of a transfer) or the Holder of
         the canceled Certificated Security (in the case of an exchange),
         registered in the name of such transferee or Holder, as applicable, and
         (z) if such transfer or

                                       22
<PAGE>   28
         exchange involves less than the entire principal amount of the canceled
         Certificated Security, deliver to the Holder thereof one or more
         Certificated Securities in authorized denominations having an aggregate
         principal amount equal to the untransferred or unexchanged portion of
         the canceled Certificated Security, registered in the name of the
         Holder thereof.

         SECTION 2.10. Restrictions on Transfer and Exchange. (a) The transfer
or exchange of any Security (or a beneficial interest therein) may only be made
in accordance with this Section, Section 2.09 and the applicable rules and
procedures of the Depositary. The Trustee shall refuse to register any requested
transfer or exchange that does not comply with the preceding sentence.

          (b) The transfer or exchange of any Security (or a beneficial interest
therein) that bears the Restricted Legend may only be made in compliance with
the provisions of the Restricted Legend.

          (c) The transfer or exchange of a beneficial interest in an Offshore
Global Security for a beneficial interest in a U.S. Global Security may only be
made upon receipt by the Trustee of a duly completed Rule 144A Certificate.

          (d) The transfer or exchange of a beneficial interest in a U.S. Global
Security for a beneficial interest in an Offshore Global Security may only be
made upon receipt by the Trustee of a duly completed Regulation S Certificate.

          (e) The transfer or exchange of a Certificated Security for another
Certificated Security may only be made upon receipt by the Trustee of (x) a duly
completed Rule 144A Certificate or (y) a duly completed Regulation S
Certificate, and/or an opinion of counsel and such other certifications and
evidence as the Company may reasonably require in order to determine that the
proposed transfer or exchange is being made in compliance with the Securities
Act and any applicable securities laws of any state of the United States;
provided that if the requested transfer or exchange is made by the Holder of a
Certificated Security that does not bear the Restricted Legend, then no
certification is required. In the event that (i) the requested transfer or
exchange takes place after the Restricted Period and a duly completed Regulation
S Certificate is delivered to the Trustee or (ii) a Certificated Note that does
not bear the Restricted Legend is surrendered for transfer or exchange, upon
transfer or exchange the Trustee will deliver a Certificated Note that does not
bear the Restricted Legend.

          (f) During the Restricted Period, beneficial interests in an Offshore
Global Security may be held through the Depositary only through Euroclear and
Clearstream, and their respective direct and indirect participants.

                                       23
<PAGE>   29
          (g) The Trustee will retain copies of all certificates, opinions and
other documents received in connection with the transfer or exchange of a
Security (or a beneficial interest therein), and the Company will have the right
to inspect and make copies thereof at any reasonable time upon written notice to
the Trustee.

         (h) No certification is required in connection with any transfer or
exchange of any Security (or a beneficial interest therein)

                  (i) after such Security is eligible for resale pursuant to
         Rule 144(k) under the Securities Act (or a successor provision);
         provided that the Company has provided the Trustee with a certificate
         to that effect, and the Company may require from any Person requesting
         a transfer or exchange in reliance upon this clause (i) an opinion of
         counsel and any other reasonable certifications and evidence in order
         to support such certificate; or

                  (ii) (x) sold pursuant to an effective registration statement,
         pursuant to the Registration Rights Agreement or otherwise or (y) which
         is validly tendered for exchange into an Exchange Security pursuant to
         an Exchange Offer.

         Any Certificated Security delivered in reliance upon this paragraph
will not bear the Restricted Legend.

                SECTION 2.11. Temporary Offshore Global Securities. (a) Each
Security originally sold by the Initial Purchasers in reliance upon Regulation S
will be evidenced by one or more Offshore Global Securities that bear the
Temporary Offshore Global Security Legend.

          (b) An owner of a beneficial interest in a Temporary Offshore Global
Security (or a Person acting on behalf of such an owner) may provide to the
Trustee (and the Trustee will accept) a duly completed Certificate of Beneficial
Ownership at any time after the Restricted Period (it being understood that the
Trustee will not accept any such certificate during the Restricted Period).
Promptly after acceptance of a Certificate of Beneficial Ownership with respect
to such a beneficial interest, the Trustee will cause such beneficial interest
to be exchanged for an equivalent beneficial interest in a Permanent Offshore
Global Security, and will (x) permanently reduce the principal amount of such
Temporary Offshore Global Security by the amount of such beneficial interest and
(y) increase the principal amount of such Permanent Offshore Global Security by
the amount of such beneficial interest.

          (c) Notwithstanding anything to the contrary contained herein,
beneficial interests in a Temporary Offshore Global Security may be held through

                                       24
<PAGE>   30
the Depositary only through Euroclear and Clearstream and their respective
direct and indirect participants.

          (d) Notwithstanding paragraph (b), if after the Restricted Period any
Initial Purchaser owns a beneficial interest in a Temporary Offshore Global
Security, such Initial Purchaser may, upon written request to the Trustee
accompanied by a certification as to its status as an Initial Purchaser,
exchange such beneficial interest for an equivalent beneficial interest in a
Permanent Offshore Global Security, and the Trustee will comply with such
request and will (x) permanently reduce the principal amount of such Temporary
Offshore Global Security by the amount of such beneficial interest and (y)
increase the principal amount of such Permanent Offshore Global Security by the
amount of such beneficial interest.

                                    ARTICLE 3
                                   REDEMPTION

         SECTION 3.01. Optional Redemption. (a) The Securities will be
redeemable, as a whole or in part, at the Company's option, at any time or from
time to time. The redemption price shall be equal to the greater of (1) 100% of
the principal amount of the Securities to be redeemed or (2) the sum of the
present values of the Remaining Scheduled Payments discounted, on a semiannual
basis (assuming a 360-day year consisting of twelve 30-day months), at a rate
equal to the sum of the Treasury Rate and 30 basis points for the 2006 Notes, 40
basis points for the 2011 Notes and 50 basis points for the 2031 Notes. In the
case of each of clause (1) and (2), accrued interest will be payable to the
redemption date.

          (b) On and after the redemption date, interest will cease to accrue on
the Securities or any portion of the Securities called for redemption (unless
the Company defaults in the payment of the redemption price and accrued
interest). On or before 11:00 a.m., New York City time, on the redemption date,
the Company will deposit with a Paying Agent (or the Trustee) money sufficient
to pay the redemption price of an accrued interest on the Securities to be
redeemed on such date.

         SECTION 3.02. Redemption upon a Tax Event. If (i) the Company becomes
or will become obligated to pay any Additional Amounts pursuant Section 4.06(a)
as a result of any change in, or amendment to, the laws (or any regulations or
rulings promulgated thereunder) of the United States (or any political
subdivision or taxing authority thereof or therein), or any change in, or
amendments to, any official position regarding the application or interpretation
of such laws, regulations or rulings, which change or amendment is announced or

                                       25
<PAGE>   31
becomes effective on or after the date hereof, or (ii) a taxing authority of the
United States takes an action on or after the date hereof, whether or not with
respect to the Company or any Affiliate, that results in a substantial
probability that the Company will or may be required to pay any such Additional
Amounts, then the Company may, at its option, redeem, as a whole, but not in
part, the Securities on any interest payment date at a redemption price equal to
100% of their principal amount, together with interest accrued thereon to the
date fixed for redemption; provided that the Company determines, in its business
judgment, that the obligation to pay such additional amounts cannot be avoided
by the use of reasonable measures available to the Company, not including
substitution of the obligor under the Securities. No redemption pursuant to
clause (ii) above may be made unless the Company shall have received an opinion
of independent counsel to the effect that an act taken by a taxing authority of
the United States results in a substantial probability that the Company will or
may be required to pay the Additional Amounts under Section 4.06(a) and the
Company shall have delivered to the Trustee a certificate, signed by a duly
authorized officer stating, that based on such opinion the Company is entitled
to redeem the Securities pursuant to their terms.

         SECTION 3.03. Notice to Trustee. In respect of any redemption pursuant
to Sections 3.01 or 3.02, the Company shall notify the Trustee of the redemption
date and the principal amount of the Securities to be redeemed. The Company
shall give not less than 45 days advance notice to the Trustee before the
redemption date or such lesser notice as shall be satisfactory to the Trustee.

         SECTION 3.04. Selection of Securities to be Redeemed. Upon notice that
less than all the Securities are to be redeemed, the Trustee shall thereupon
select the Securities to be redeemed in such manner as the Trustee shall deem
fair and appropriate, such selection to be made from Securities that are
outstanding and that have not previously been called for redemption. Securities
and portions of them selected by the Trustee shall be in amounts of $1,000 or
integral multiples of $1,000. Provisions of the Indenture that apply to
Securities called for redemption also apply to portions of Securities called for
redemption. The Trustee shall promptly notify the Company in writing of the
Securities selected for redemption and, in the case of any Securities selected
for partial redemption, the principal amount thereof to be redeemed.

         SECTION 3.05. Notice of Redemption. (a) Not less than 30 days nor more
than 90 days in the case of Section 3.01, and not less than 30 days nor more
than 60 days in the case of Section 3.02, the Company shall mail a notice of
redemption by first-class mail to each Holder of Securities that are to be
redeemed.

                                       26
<PAGE>   32
          (b) Notice of redemption shall be published in an Authorized Newspaper
in New York City, and if the Securities to be redeemed are listed on the
Luxembourg Stock Exchange, Luxembourg, once in each of four successive calendar
weeks, the first publication to be not less than 30 nor more than 90 days before
the redemption date.

          (c) All notices shall identify the Securities (including CUSIP or CINS
numbers) to be redeemed and shall state:

                  (1) the redemption date;

                  (2) the redemption price;

                  (3) if less than all the outstanding Securities are to be
         redeemed, the identification (and, in the case of partial redemption,
         the principal amounts) of the particular Securities to be redeemed;

                  (4) the name and address of the Paying Agent;

                  (5) the Securities called for redemption must be surrendered
         to the Paying Agent to collect the redemption price; and

                  (6) that interest on Securities called for redemption ceases
         to accrue on and after the redemption date.

         At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense.

         SECTION 3.06. Effect of Notice of Redemption. Once notice of redemption
is mailed or published, Securities called for redemption become due and payable
on the redemption date. Upon surrender to the Paying Agent of such Securities,
such Securities shall be paid at the redemption price plus accrued interest to
the redemption date, but regular installments of interest due on or prior to the
redemption date will be payable to the Holders of such Securities of record at
the close of business on the relevant record dates.

         SECTION 3.07. Deposit of Redemption Price. On or before 11:00 a.m., New
York City time, on the redemption date, the Company shall deposit with the
Trustee money sufficient to pay the redemption price of and (unless the
redemption date shall be an interest payment date) interest accrued to the
redemption date on all Securities to be redeemed on that date. Upon surrender of
a Security that is redeemed in part, the Company shall issue and the Trustee
shall authenticate for the Holder of that Security a new Security or Securities
of the same form and the same date of maturity, interest rate, and original
issue date in

                                       27
<PAGE>   33
authorized denominations equal in aggregate principal amount to the unredeemed
portion of the Security surrendered.

                                    ARTICLE 4
                                    COVENANTS

         SECTION 4.01. Payment of Securities. (a) The Company agrees to pay the
principal of and interest on the Securities on the dates and in the manner
provided herein and in the Securities. Interest shall be paid on each interest
payment date at the close of business on the relevant record date specified in
the Securities.

          (b) An installment of principal or interest shall be considered paid
on the date due if the Trustee or Paying Agent (other than the Company or a
Subsidiary) holds on that date money designated for and sufficient to pay the
installment. If the Company or a Subsidiary acts as Paying Agent, it shall
segregate the money held by it for the payment of principal or interest on the
Securities and hold such money as a separate trust fund until paid to the
Holders or otherwise disposed of as provided in this Indenture and an
installment of principal or interest will be considered paid on the due date
only if paid to the Holders.

          (c) Payments in respect of the Securities represented by the Global
Securities are to be made by wire transfer of immediately available funds to the
accounts specified by the Holders of the Global Securities. With respect to
Certificated Securities (in the event Securities are issued in such form
pursuant to Section 2.09(b)(4)), the Company will make all payments by wire
transfer of immediately available funds to the accounts specified by the Holders
thereof or, if no such account is specified, by mailing a check to each Holder's
registered address.

          (d) At least 10 days prior to the first interest payment date with
respect to the Securities, and at least 10 days prior to each date of payment of
principal or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officers' Certificate, the Company will furnish
the Trustee and the Company's principal Paying Agent or Paying Agents, if other
than the Trustee, with an Officers' Certificate instructing the Trustee and such
Paying Agent or Paying Agents whether such payment of principal and interest on
the Securities shall be made to Holders who are not U.S. persons without
withholding for or on account of any tax, assessment or other governmental
charge described in the Securities. If any such withholding shall be required,
then such Officers' Certificate shall specify by country the amount, if any,
required to be withheld on such payments to such Holders and the Company will
pay to the Trustee or such Paying Agent such additional amounts as may be
required pursuant to Section

                                       28
<PAGE>   34
4.06. The Company covenants to indemnify the Trustee and any Paying Agent for,
and to hold them harmless against, any loss, liability or expense reasonably
incurred without negligence or bad faith on their part arising out of or in
connection with actions taken or omitted by any of them in reliance on any
Officers' Certificate furnished pursuant to this Section.

         SECTION 4.02.  Reports by the Company.  The Company covenants:

                  (a) to file with the Trustee, within 15 days after the Company
         is required to file the same with the SEC, copies of the annual reports
         (or copies of such portions of any of the foregoing as the SEC may from
         time to time by rules and regulations prescribe) which the Company may
         be required to file with the SEC pursuant to Section 13 or Section
         15(d) of the Exchange Act; or if the Company is not required to file
         information, documents or reports pursuant to either of such sections,
         then to file with the Trustee and the SEC, in accordance with rules and
         regulations prescribed from time to time by the SEC, such of the
         supplementary and periodic information, documents and reports which may
         be required pursuant to Section 13 of the Exchange Act, in respect of a
         security listed and registered on a national securities exchange as may
         be prescribed from time to time in such rules and regulations;

                  (b) to file with the Trustee and the SEC, in accordance with
         the rules and regulations prescribed from time to time by the SEC, such
         additional information, documents, and reports with respect to
         compliance by the Company with the conditions and covenants provided
         for in this Indenture as may be required from time to time by such
         rules and regulations; and

                  (c) to transmit by mail to all Holders, as the names and
         addresses of such Holders appear on the Register, within 30 days after
         the filing thereof with the Trustee, such summaries of any information,
         documents and reports required to be filed by the Company pursuant to
         paragraphs (a) and (b) of this Section 4.02 as may be required by rules
         and regulations prescribed from time to time by the SEC.

         SECTION 4.03. Limitations on Liens. The Company will not create,
assume, incur or guarantee, and will not permit any Restricted Subsidiary to
create, assume, incur or guarantee, any Secured Indebtedness without making
provision whereby all the Securities shall be secured equally and ratably with
(or prior to) such Secured Indebtedness (together with, if the Company shall so
determine, any other Indebtedness of the Company or such Restricted Subsidiary
then existing or thereafter created which is not subordinate to the Securities)
so long as such Secured Indebtedness shall be outstanding unless such Secured

                                       29
<PAGE>   35
Indebtedness, when added to (a) the aggregate amount of all Secured Indebtedness
then outstanding (not including in this computation Secured Indebtedness if the
Securities are secured equally and ratably with (or prior to) such Secured
Indebtedness and further not including in this computation any Secured
Indebtedness which is concurrently being retired) and (b) the aggregate amount
all Attributable Debt then outstanding pursuant to Sale and Leaseback
Transactions entered into by the Company after April 26, 2000, or entered into
by a Restricted Subsidiary after April 26, 2000, or, if later, the date on which
it became a Restricted Subsidiary (not including in this computation any
Attributable Debt which is concurrently being retired), would not exceed 15% of
Consolidated Net Tangible Assets.

         SECTION 4.04. Limitations on Sales and Leasebacks. The Company will
not, and will not permit any Restricted Subsidiary to, enter into any Sale and
Leaseback Transaction unless (a) the sum of (i) the Attributable Debt to be
outstanding pursuant to such Sale and Leaseback Transaction, (ii) all
Attributable Debt then outstanding pursuant to all other Sale and Leaseback
Transactions entered into by the Company after April 26, 2000, or, or entered
into by a Restricted Subsidiary after April 26, 2000, or, if later, the date on
which it became a Restricted Subsidiary and (iii) the aggregate of all Secured
Indebtedness then outstanding (not including in this computation Secured
Indebtedness if the Securities are secured equally and ratably with (or prior
to) such Secured Indebtedness) would not exceed 15% of Consolidated Net Tangible
Assets, or (b) an amount equal to the greater of (i) the net proceeds to the
Company or the Restricted Subsidiary of the sale of the Principal Property sold
and leased back pursuant to such Sale and Leaseback Transaction and (ii) the
amount of Attributable Debt to be outstanding pursuant to such Sale and
Leaseback Transaction is applied to the retirement of Funded Debt of the Company
or any Restricted Subsidiaries (other than Funded Debt which is subordinate to
the Securities or which is owing to the Company or any Restricted Subsidiaries)
within 180 days after the consummation of such Sale and Leaseback Transaction.

         SECTION 4.05. Waiver of Covenants. The Company may omit in any
particular instance to comply with any covenant or condition set forth in
Sections 4.03, 4.04 and 4.06 hereof with respect to the Securities if before or
after the time for such compliance the holders of a majority in aggregate
principal amount of the Securities at the time outstanding shall, by action of
such Securityholders in accordance with this Indenture, either waive such
compliance in such instance or generally waive compliance with such covenant or
condition, but no such waiver shall extend to or affect such covenant or
condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Company and duties of the Trustee in
respect of any such covenant or condition shall remain in full force and effect.

                                       30
<PAGE>   36
         SECTION 4.06. Additional Amounts. (a) The Company shall, subject to
Section 4.06(b), pay as additional interest on the Securities such additional
amounts (the "ADDITIONAL AMOUNTS") as are necessary so that the net payment by
the Company or a Paying Agent of the principal of and interest on the Securities
to a person that is not a U.S. Holder, after deduction for any present or future
tax, assessment or governmental charge of the United States or a political
subdivision or taxing authority thereof of therein, imposed by withholding with
respect to the payment, will not be less than the amount that would have been
payable in respect of the Securities had no such withholding or deduction been
required.

         (b) The obligation of the Company to pay any Additional Amount under
Section 4.06(a) shall not apply:

                  (i) to a tax, assessment or governmental charge that is
         imposed or withheld solely because the Holder, or a fiduciary, settlor,
         beneficiary, member or shareholder of the Holder if the Holder is an
         estate, trust, partnership or corporation, or a person holding a power
         over an estate or trust administered by a fiduciary holder:

                                    (1) is or was present or engaged in trade or
                           business in the United States or has or had a
                           permanent establishment in the United States;

                                    (2) has a current or former relationship
                           with the United States, including a relationship as a
                           citizen or resident thereof;

                                    (3) is or has been a foreign or domestic
                           personal holding company, a passive foreign
                           investment company or a controlled foreign
                           corporation with respect to the United States or a
                           corporation that has accumulated earnings to avoid
                           United States federal income tax; or

                                    (4) is or was a "10-percent shareholder" of
                           the Company as defined in section 871(h)(3) of the
                           United States Internal Revenue Code or any successor
                           provision;

                  (ii) to any Holder that is not the sole beneficial owner of
         the Securities, or a portion thereof, or that is a fiduciary or
         partnership, but only to the extent that the beneficial owner, a
         beneficiary or settlor with respect to the fiduciary, or a member of
         the partnership would not have been entitled to the payment of an
         Additional Amount had such beneficial owner, beneficiary, settlor or
         member received directly its beneficial or distributive share of the
         payment;

                                       31
<PAGE>   37
                  (iii) to a tax, assessment or governmental charge that is
         imposed or withheld solely because the Holder or any other person
         failed to comply with certification, identification or information
         reporting requirements concerning the nationality, residence, identity
         or connection with the United States of the Holder or beneficial owner
         of the Securities, if compliance is required by statute, by regulation
         of the United States Treasury Department or by an applicable income tax
         treaty to which the United States is a party as a precondition to
         exemption from such tax, assessment or other governmental charge;

                  (iv) to a tax, assessment or governmental charge that is
         imposed other than by withholding by the Company or a Paying Agent from
         the payment;

                  (v) to a tax, assessment or governmental charge that is
         imposed or withheld solely because of a change in law, regulation, or
         administrative or judicial interpretation that becomes effective more
         than 15 days after the payment becomes due or is duly provided for,
         whichever occurs later;

                  (vi) to an estate, inheritance, gift, sales, excise, transfer,
         wealth or personal property tax or a similar tax, assessment or
         governmental charge;

                  (vii) to any tax, assessment or other governmental charge any
         Paying Agent must withhold from any payment of principal or of interest
         on any Security, if such payment can be made without such withholding
         by any other Paying Agent; or

                  (viii) in the case of any combination of the above items.

         (c) The Securities are subject in all cases to any tax, fiscal or other
law or regulation or administrative or judicial interpretation applicable.
Except as specifically provided under Section 4.06(a), there is no obligation of
the Company to make any payment with respect to any tax, assessment or
governmental charge imposed by any government or a political subdivision or
taxing authority with respect or in connection with the Securities.

                                       32
<PAGE>   38
                                    ARTICLE 5
                              SUCCESSOR CORPORATION

         SECTION 5.01. Consolidation, Merger, Sale or Conveyance. Nothing
contained in this Indenture or in the Securities shall prevent any consolidation
of the Company with, or merger of the Company into, any other corporation or
corporations (whether or not affiliated with the Company), or successive
consolidations or mergers to which the Company or its successor or successors
shall be a party or parties, or shall prevent any sale or conveyance of the
property of the Company (including stock of subsidiaries) as an entirety or
substantially as an entirety to any other corporation (whether or not affiliated
with the Company) authorized to acquire and own or operate the same; provided,
however, and the Company hereby covenants and agrees, that upon any such
consolidation, merger, sale or conveyance, the due and punctual payment of the
principal of and interest on all of the Securities, according to their tenor,
and the due and punctual performance and observance of all of the covenants and
conditions of this Indenture to be performed or observed by the Company, shall
be expressly assumed, by supplemental indenture, satisfactory in form to the
Trustee, executed and delivered to the Trustee by the corporation formed by such
consolidation, or into which the Company shall have been merged, or which shall
have acquired such property.

         SECTION 5.02. Assumption and Substitution. (a) In case of any such
consolidation, merger, sale or conveyance, and following such an assumption by
the successor corporation, such successor corporation shall succeed to and be
substituted for the Company, with the same effect as if it had been named
herein.

         (b) Such successor corporation may cause to be signed, and may issue
either in its own name or in the name of the Company, any or all of the
Securities issuable pursuant to the provisions of Article 2 which theretofore
shall not have been signed by the Company and delivered to the Trustee; and,
upon the order of such successor corporation instead of the Company and subject
to all the terms, conditions and limitations in this Indenture prescribed, the
Trustee shall authenticate and shall deliver any Securities which previously
shall have been signed and delivered by the officers of the Company to the
Trustee for authentication pursuant to such provisions and any Securities which
such successor corporation thereafter shall cause to be signed and delivered to
the Trustee on its behalf for that purpose pursuant to such provisions. All the
Securities so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Securities theretofore or thereafter issued in
accordance with the terms of this Indenture as though all of such Securities had
been issued at the date of the execution hereof.

                                       33
<PAGE>   39
            In case of any such consolidation, merger, sale or conveyance, such
changes in phraseology and form may be made in the Securities thereafter to be
issued as may be appropriate.

         (c) Nothing contained in this Indenture or in any of the Securities
shall prevent the Company from merging into itself any other corporation or
entity (whether or not affiliated with the Company) or acquiring by purchase or
otherwise all or any part of the property of any other corporation or entity
(whether or not affiliated with the Company).

         SECTION 5.03. Opinion of Counsel. The Trustee, subject to the
provisions of Sections 7.01 and 7.02, may receive an Opinion of Counsel as
conclusive evidence that any consolidation, merger, sale or conveyance and any
such assumption complies with the provisions of this Article 5.

                                    ARTICLE 6
         REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

         SECTION 6.01. Events of Default; Acceleration of Maturity; Waiver of
Default. In case one or more of the following Events of Default shall have
occurred and be continuing with respect to the Securities ("EVENTS OF DEFAULT"),
that is to say:

                  (a) default in the payment of any installment of interest
         (including any Additional Interest and Additional Amounts) upon any of
         the Securities as and when the same shall become due and payable, and
         continuance of such default for a period of 90 days; or

                  (b) default in payment of the principal of any of the
         Securities as and when the same shall become due and payable either at
         maturity, upon redemption, by declaration or otherwise; or

                  (c) failure on the part of the Company duly to observe or
         perform any other of the covenants or agreements on the part of the
         Company in the Securities, in this Indenture or in any supplemental
         indenture, for a period of 90 days after the date on which written
         notice of such failure (specified as a "Notice of Default"), requiring
         the Company to remedy the same, shall have been given to the Company by
         the Trustee or to the Company and the Trustee by Holders of at least
         twenty-five percent in aggregate principal amount of the Securities at
         the time outstanding; or

                                       34
<PAGE>   40
                  (d) a court or governmental agency having jurisdiction in the
         premises shall enter a decree or order for relief in respect of the
         Company in an involuntary case under any applicable federal or state
         bankruptcy, insolvency or other similar law now or hereafter in effect,
         or appointing a receiver, liquidator, assignee, custodian, trustee,
         sequestrator (or similar official) of the Company or for any
         substantial part of its property or ordering the winding up or
         liquidation of its affairs, and such decree or order shall remain
         unstayed and in effect for a period of 60 consecutive days; or

                  (e) the Company shall commence a voluntary case under any
         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect, or consent to the entry of an order for relief in an
         involuntary case under any such law, or consent to the appointment or
         taking possession by a receiver, liquidator, assignee, custodian,
         trustee, sequestrator (or similar official) of the Company or for any
         substantial part of its property or make any general assignment for the
         benefit of creditors; or the Company shall admit in writing its
         inability to pay its debts generally as they become due, or corporate
         action shall be taken by the Company in furtherance of any of the
         aforesaid purposes;

         then and in each and every such case, unless the principal of all
Securities shall have already become due and payable, either the Trustee or the
Holders of not less than twenty-five percent in aggregate principal amount of
the Securities then outstanding hereunder, by notice in writing to the Company
(and to the Trustee if given by Securityholders), may declare the principal of
all the Securities to be due and payable immediately, and upon any such
declaration the same shall become and shall be immediately due and payable,
anything in this Indenture or in any supplemental indenture to the contrary
notwithstanding. This provision, however, is subject to the condition that if,
at any time after the principal of the Securities shall have been so declared
due and payable, and before any judgment or decree for the payment of the moneys
due shall have been obtained or entered as hereinafter provided, the Company
shall pay, or shall deposit with the Trustee a sum sufficient to pay, all
matured installments of interest upon all the Securities and the principal of
any and all Securities which shall have become due otherwise than by
declaration, with interest upon such principal and (to the extent that payment
of such interest is enforceable under applicable law) upon any overdue
installments of interest at the same rate of interest specified in the
Securities, to the date of such payment or deposit, and such amount as shall be
sufficient to cover reasonable compensation to the Trustee, its agents and
counsel, and all other expenses and liabilities incurred, and all advances made,
by the Trustee except as a result of its negligence or bad faith, and if any and
all defaults under this Indenture with respect to the Securities, other than the
nonpayment of the principal of the Securities which shall have become due by
declaration, shall have

                                       35
<PAGE>   41
been remedied -- then and in every such case the Holders of a majority in
aggregate principal amount of the Securities then outstanding by written by
notice to the Company and to the Trustee may waive all defaults and rescind and
annul such declaration and its consequences; but no such waiver or rescission or
annulment shall extend to or shall affect any subsequent default or shall impair
any right consequent thereon.

         In case the Trustee shall have proceeded to enforce any right under
this Indenture and such proceedings shall have been discontinued or abandoned
because of such waiver or rescission or annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such case
the Company, the Trustee and the Holders shall be restored respectively to their
former positions and rights hereunder, and all rights, remedies and powers of
the Company, the Trustee and the Holders shall continue as though no such
proceedings had been taken.

         SECTION 6.02. Collection of Indebtedness by Trustee; Trustee May Prove
Debt. (a) The Company covenants that (1) in case default shall be made in the
payment of any installment of interest on any of the Securities, as and when the
same shall become due and payable, and such default shall have continued for a
period of 90 days, or (2) in case default shall be made in the payment of the
principal of any of the Securities when the same shall have become due and
payable, whether upon maturity or upon redemption or upon declaration or
otherwise - then, upon demand of the Trustee, the Company will pay to the
Trustee, for the benefit of the Holders, the whole amount that then shall have
become due and payable on all Securities for principal and interest, with
interest upon any overdue principal and (to the extent that payment of such
interest is enforceable under applicable law) upon any overdue installments of
interest at the same rate as the rate of interest specified in the Securities,
and, in addition thereto, such further amount as shall be sufficient to cover
reasonable compensation to the Trustee, its agents and counsel, and all other
expenses and liabilities incurred, and all advances made, by the Trustee except
as a result of its negligence or bad faith.

         (b) In case the Company shall fail forthwith to pay such amounts upon
such demand, the Trustee, in its own name and as trustee of an express trust,
shall be entitled and empowered to institute any action or proceedings at law or
in equity for the collection of the sums so due and unpaid, and may prosecute
any such action or proceedings to judgment or final decree and may enforce any
such judgment or final decree against the Company or other obligor upon such
Securities and collect in the manner provided by law out of the property of the
Company or other obligor upon such Securities wherever situated the moneys
adjudged or decreed to be payable.

                                       36
<PAGE>   42
         (c) In case there shall be pending proceedings relative to the Company
or any other obligor or any other obligor upon the Securities under Title 11 of
the United States Code or any other applicable federal or state bankruptcy,
insolvency or other similar law, or in case a receiver, assignee or trustee in
bankruptcy or reorganization, liquidator, sequestrator or similar official shall
have been appointed for or taken possession of the Company or its property or
such other obligor, or in case of any other judicial proceedings relative to the
Company or other obligor upon the Securities, or to the creditors or property of
the Company or such other obligor, the Trustee, irrespective of whether the
principal of any Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall
have made any demand pursuant to the provisions of this Section 6.02, shall be
entitled and empowered, by intervention in such proceedings or otherwise, (i) to
file and prove a claim or claims for the whole amount of principal and interest
owing and unpaid in respect of the Securities and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for reasonable compensation to the Trustee, its
agents and counsel, and for reimbursement of all expenses and liabilities
incurred, and all advances made, by the Trustee except as a result of its
negligence or bad faith) and of the Securityholders allowed in any judicial
proceedings relative to the Company or other obligor upon the Securities, or to
the creditors or property of the Company or such other obligor, (ii) unless
prohibited by applicable law and regulations, to vote on behalf of the Holders
in any election of a trustee or a standby trustee in arrangement,
reorganization, liquidation or other bankruptcy or insolvency proceedings or
person performing similar functions in comparable proceedings, and (iii) to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute all amounts received with respect to the claims of
the Securityholders and of the Trustee on their behalf and any receiver,
assignee, liquidator, custodian, trustee or other similar official is hereby
authorized by each of the Securityholders to make payments to the Trustee and,
in the event that the Trustee shall consent to the making of payments directly
to the Securityholders, to pay the Trustee such amount as shall be sufficient to
cover reasonable compensation to the Trustee, its agents and counsel, and all
other expenses and liabilities incurred, and all advances made, by the Trustee
except as a result of its negligence or bad faith.

         (d) Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or vote for or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Securityholder in
any such proceeding except, as aforesaid, to vote for the election of a trustee
in bankruptcy or similar person.

                                       37
<PAGE>   43
         (e) All rights of action and to assert claims under this Indenture, or
under any of the Securities, may be enforced by the Trustee without the
possession of any of the Securities or the production thereof on any trial or
other proceedings relative thereto, and any such action or proceedings
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall be for the ratable benefit of
the holders of the Securities in respect of which such action was taken.

         (f) In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which Trustee
shall be a party) the Trustee shall be held to represent all the Holders of the
Securities in respect to which such action was taken, and it shall not be
necessary to make any holders of such Securities parties to any such
proceedings.

         (g) In the case of a default hereunder the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in this Indenture, or in aid of the exercise
of any power granted in this Indenture, or otherwise, and the Trustee may
enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law.

         SECTION 6.03. Application of Proceeds. Any moneys collected by the
Trustee pursuant to Section 6.02 in respect of any Securities shall be applied
in the order following, at the date or dates fixed by the Trustee and, in case
of the distribution of such moneys on account of principal or interest, upon
presentation of the several Securities in respect of which moneys have been
collected and making a notation thereon the payment if only partially paid, and
upon surrender thereof if fully paid:

                                    First: To the payment of costs and expenses
                           of collection, reasonable compensation to the
                           Trustee, its agents and counsel, and all other
                           expenses and liabilities incurred, and all advances
                           made, by the Trustee except as a result of its
                           negligence or bad faith;

                                    Second: In case the principal of the
                           Securities in respect of which moneys have been
                           collected shall not have become due, to the payment
                           of interest on the Securities in default, in the
                           order of the maturity of the installments of such
                           interest, with interest (to the extent that such
                           interest has been collected by the Trustee) upon the
                           overdue installments of interest, at the same rate as
                           the rate of interest specified in the Securities,
                           such payments to be made ratably to the persons
                           entitled thereto;

                                       38
<PAGE>   44
                                    Third: In case the principal of the
                           Securities in respect of which moneys have been
                           collected shall have become due by declaration or
                           otherwise, to the payment of the whole amount then
                           owing and unpaid upon all of the Securities for
                           principal and interest, with interest on the overdue
                           principal, and (to the extent that such interest has
                           been collected by the Trustee) upon overdue
                           installments of interest, at the same rate as the
                           rate of interest specified in the Securities, and in
                           case such moneys shall be insufficient to pay in full
                           the whole amount so due and unpaid upon the
                           Securities, then to the payment of such principal and
                           interest without preference or priority of principal
                           over interest, or of interest over principal, or of
                           any installment of interest over any other
                           installment of interest, or of any Securities over
                           any other Securities, ratably to the aggregate of
                           such principal and interest; and

                                    Fourth: To the Company.

         SECTION 6.04. Limitation on Suits by Securityholders. (a) No Holder of
any Securities shall have any right by virtue or by availing of any provision of
this Indenture to institute any action or proceeding at law or in equity or in
bankruptcy or otherwise upon or under or with respect to this Indenture, or for
the appointment of a receiver, trustee, liquidator, custodian or other similar
official or for any other remedy hereunder, unless such Holder previously shall
have given to the Trustee written notice of an Event of Default and unless also
the holders of not less than twenty-five percent in aggregate principal amount
of the Securities then outstanding shall have made written request upon the
Trustee to institute such action or proceedings in its own name as trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses, and liabilities to be incurred therein
or thereby and the Trustee, for 60 days after its receipt of such notice,
request and offer of indemnity, shall have failed to institute any such action
or proceedings and no direction inconsistent with such written request shall
have been given to the Trustee pursuant to Section 6.06; it being understood and
intended and being expressly covenanted by the taker and holder of every
Security with every other taker and holder and the Trustee that no one or more
holders of Securities shall have any right in any manner whatever by virtue or
by availing of any provision of this Indenture to affect, disturb or prejudice
the rights of any other holder of Securities, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Securities. For the protection and
enforcement of the provisions of this Section 6.04, each and every Holder and
the Trustee shall be entitled to such relief as can be given either at law or in
equity.

                                       39
<PAGE>   45
         (b) Notwithstanding any other provision in this Indenture or any
provision of any Security, the right of any Holder to receive payment of the
principal and interest on such Security, or any redemption date or to institute
suit for the enforcement of any such payment on or after such respective dates,
shall not be impaired or affected without the consent of such Holder.

         SECTION 6.05. Powers and Remedies Cumulative; Delay or Omission Not
Waiver of Default. All powers and remedies given by this Article 6 to the
Trustee or to the Securityholders shall, to the extent permitted by law, be
deemed cumulative and not exclusive of any thereof or of any other powers and
remedies available to the Trustee or the Securityholders, by judicial
proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in this Indenture, and no delay or omission
of the Trustee or of any Holder of the Securities in exercising any right or
power accruing upon any default occurring and continuing as aforesaid shall
impair any such right or power or shall be construed to be a waiver or any such
default or an acquiescence therein; and, subject to the provisions of Section
6.04, every power and remedy given by this Article 6 or by law to the Trustee or
to the Securityholders may be exercised from time to time, and as often as shall
be deemed expedient, by the Trustee or by the Securityholders.

         SECTION 6.06. Control by Securityholders; Waiver of Defaults. The
holders of a majority in aggregate principal amount of the Securities at the
time outstanding shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee with respect to the Securities by
this Indenture; provided that such direction shall not be otherwise than in
accordance with law and the provisions of this Indenture and provided further
that (subject to the provisions of Section 7.01) the Trustee shall have the
right to decline to follow any such direction if the Trustee, being advised by
counsel, shall determine that the action or proceeding so directed may not
lawfully be taken or if the Trustee in good faith by its board of directors, the
executive committee, or a trust committee of directors or Responsible Officers
of the Trustee shall determine that the action or proceedings so directed would
involve the Trustee in personal liability or if the Trustee in good faith shall
so determine that the actions or forbearances specified in or pursuant to such
direction would be unduly prejudicial to the interests of the Holders not
joining in the giving of said direction, it being understood that (subject to
Section 7.01) the Trustee shall have no duty to ascertain whether or not such
actions or forbearance are unduly prejudicial to such holders. Nothing in this
Indenture shall impair the right of the Trustee in its discretion to take any
action deemed proper by the Trustee and which is not inconsistent with such
direction or directions by Securityholders. Prior to the declaration of the
maturity of the Securities as provided in Section 6.01, the Holders of a
majority in aggregate principal amount of the Securities at the time outstanding
may on behalf of the

                                       40
<PAGE>   46
holders of all the Securities waive any past default hereunder with respect to
such Securities and its consequences, except a default in the payment of the
principal of or interest on any of the Securities. In the case of any such
waiver, the Company, the Trustee and the holders of the Securities shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

         SECTION 6.07. Right of Court to Require Filing of Undertaking to Pay
Costs. All parties to this Indenture agree, and each Holder of any Security, by
such Holder's acceptance thereof 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 Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, 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,
against any party litigant in such suit, having the due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 6.07 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding in the aggregate more than ten percent in principal
amount of the Securities outstanding, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of or
interest on any Security on or after the due date expressed in such Security.

                                    ARTICLE 7
                                     TRUSTEE

         SECTION 7.01. Duties of Trustee.

         (a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise its rights and powers under this Indenture and use the same
degree of care and skill in their exercise as a prudent person would exercise or
use under the circumstances in the conduct of such person's own affairs.

         (b) Except during the continuance of an Event of Default:

                  (1) The Trustee need perform only those duties that are
         specifically set forth in the Indenture and no implied covenants or
         obligations shall be read into this Indenture against the Trustee.

                  (2) In the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of

                                       41
<PAGE>   47
         the opinions expressed therein, upon certificates or opinions furnished
         to the Trustee and conforming to the requirements of this Indenture;
         but in the case of any such certificates or opinions which by any
         provision hereof are specifically required to be furnished to the
         Trustee, the Trustee shall be under a duty to examine the certificates
         and opinions to determine whether or not they conform to the
         requirements of this Indenture.

         (c) The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that

                  (1) This paragraph does not limit the effect of paragraph (b)
         of this Section.

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

                  (3) The Trustee shall not be liable with respect to any action
         it takes or omits to take in good faith in accordance with a direction
         received by it pursuant to Section 6.06.

         (d) Every provision of this Indenture that in any way relates to the
Trustee is subject to the provisions of this Section.

         (e) No provision of this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

         (f) The Trustee shall not be liable for interest on any money received
by it except as the Trustee may agree with the Company. Money held in trust by
the Trustee need not be segregated from other funds except to the extent
required by law.

         SECTION 7.02. Rights of Trustee. Except as otherwise provided in
Section 7.01:

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

                                       42
<PAGE>   48
         (b) any request, direction, order, demand, notice or other
communication of the Company mentioned herein shall be sufficiently evidenced by
Company Order and any resolution of the Board of Directors may be sufficiently
evidenced to the Trustee by a copy thereof certified by a Secretary or an
Assistant Secretary of the Company;

         (c) the Trustee may consult with counsel and 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 accordance with
such Opinion of Counsel;

         (d) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of
any of the Holders pursuant to this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which might be incurred therein or thereby; and

         (e) the Trustee shall not be liable for any action taken, suffered, or
omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Indenture.

         SECTION 7.03. Individual Rights of Trustee. The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company or an Affiliate with the same rights it
would have if it were not Trustee. Any Agent may do the same with like rights.
However, the Trustee is subject to Sections 7.10 and 7.11.

         SECTION 7.04. Trustee Disclaimer. The Trustee makes no representation
as to the validity or adequacy of this Indenture or the Securities. It shall not
be accountable for the Company's use of the proceeds from the Securities or for
moneys paid over to the Company pursuant to the Indenture, and it shall not be
responsible for any statement in the Securities other than its certificate of
authentication.

         SECTION 7.05. Notice of Default. If a Default occurs and is continuing
with respect to the Securities and if it is known to the Trustee, the Trustee
shall mail to each Holder entitled to receive reports pursuant to Section
4.02(c) (and shall cause to be published at least once in an Authorized
Newspaper in The City of New York, and if such Securities are listed on the
Luxembourg Stock Exchange, Luxembourg) notice of the Default within 90 days
after it occurs. Except in the case of a Default in payment of the principal of
or interest on the Securities, the Trustee may withhold the notice if and so
long as its Board of Directors, the executive Committee, or a Trust Committee of
directors or

                                       43
<PAGE>   49
Responsible Officers in good faith determines that withholding such notice is in
the interests of Securityholders.

         SECTION 7.06. Reports by Trustee to Holders.

         (a) Within 60 days after each May 15 beginning with the May 15
following the date of this Indenture, the Trustee shall mail to each
Securityholder entitled to receive reports pursuant to Section 4.02(c) a brief
report dated as of such date that complies with TIA Section 313(a). The Trustee
also shall comply with TIA Section 313(b), if applicable.

         (b) At the time that it mails such a report to Securityholders, the
Trustee shall file a copy of that report with the SEC and with each stock
exchange on which the Securities are listed. The Company shall provide written
notice to the Trustee when the Securities are listed on any stock exchange and
of any delisting thereof.

         SECTION 7.07. Compensation and Indemnity.

         (a) The Company shall pay to the Trustee from time to time such
compensation for its services as is agreed upon in writing between the Company
and the Trustee. The Trustee's compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse the
Trustee upon request for all reasonable out-of-pocket expenses incurred by it in
connection with the performance of its duties under this Indenture. Such
expenses shall include the reasonable compensation and expenses of the Trustee's
agents and counsel.

         (b) The Company shall indemnify the Trustee against any loss or
liability incurred by it arising out of or in connection with its acceptance or
administration of the trust or trusts hereunder. The Trustee shall notify the
Company promptly of any claim for which it may seek indemnity. The Company shall
defend the claim and the Trustee shall cooperate in the defense. The Trustee may
have separate counsel and the Company shall pay the reasonable fees and expenses
of such counsel. The Company need not pay for any settlement made without its
consent.

         (c) The Company need not reimburse any expense or indemnify against any
loss or liability incurred by the Trustee through negligence or bad faith.

         (d) To secure the payment obligations of the Company pursuant to this
Section, the Trustee shall have a lien prior to the Securities on all money or
property held or collected by the Trustee, except that held in trust to pay
principal and interest on particular Securities.

                                       44
<PAGE>   50
         (e) If the Trustee incurs expenses or renders services after an Event
of Default specified in Section 6.01(d) or (e) occurs, such expenses and the
compensation for such services are intended to constitute expenses of
administration under any federal bankruptcy, insolvency or related law.

         (f) The provisions of this Section 7.07 shall survive the termination
of this Indenture.

         SECTION 7.08. Replacement of Trustee.

         (a) The resignation or removal of the Trustee and the appointment of a
successor Trustee shall become effective only upon the successor Trustee's
acceptance of appointment as provided in this Section.

         (b) The Trustee may resign with respect to the Securities by so
notifying the Company. The Holders of a majority in principal amount of the
Securities may remove the Trustee with respect to the Securities by so notifying
the Trustee and the Company in writing and may appoint a successor Trustee for
the Securities with the Company's consent. The Company may remove the Trustee
with respect to Securities if:

                  (1) the Trustee fails to comply with Section 7.10;

                  (2) the Trustee is adjudged a bankrupt or an insolvent;

                  (3) a receiver or public officer takes charge of the Trustee
         or its property or;

                  (4) the Trustee becomes incapable of acting.

         (c) If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, with respect to the Securities, the Company
shall promptly appoint a successor Trustee for the Securities.

         (d) If a successor Trustee with respect to the Securities does not take
office within 30 days after the retiring Trustee resigns or is removed, the
retiring Trustee, the Company or the Holders of a majority in principal amount
of the Securities may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

         (e) If the Trustee fails to comply with Section 7.10, any
Securityholder may petition any court of competent jurisdiction for the removal
of such Trustee and the appointment of a successor Trustee.

                                       45
<PAGE>   51
         (f) A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee for the Securities shall become
effective, and the successor Trustee shall have all the rights, powers and
duties of the retiring Trustee with respect to all Securities for which the
successor Trustee is to be acting as Trustee under this Indenture. The retiring
Trustee shall promptly transfer all property held by it as Trustee with respect
to the Securities to the successor Trustee subject to the lien provided for in
Section 7.07. The Company shall give notice of each appointment of a successor
Trustee for the Securities by publishing notice of such event once in an
Authorized Newspaper in The City of New York, and if Securities are listed on
the Luxembourg Stock Exchange, Luxembourg, and by mailing written notice of such
event by first-class mail to the Holders entitled to receive reports pursuant to
Section 4.02(c).

         (g) All provisions of this Section 7.08 except subparagraphs (b)(1) and
(e) and the words "subject to the lien provided for in Section 7.07" in
subparagraph (f) shall apply also to any Paying Agent located outside the U.S.
and its possessions.

         (h) In case of the appointment hereunder of a successor Trustee with
respect to the Securities, the Company, the retiring Trustee and such successor
Trustee shall execute and deliver a supplemental indenture wherein such
successor Trustee shall accept such appointment and which shall contain such
provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, such successor Trustee all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities.

         SECTION 7.09. Successor Trustee, Agents by Merger, etc. If the Trustee
or any Agent consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business assets to, another
corporation, the successor corporation, without any further act, shall be the
successor Trustee or Agent, as the case may be.

         SECTION 7.10. Eligibility; Disqualification. This Indenture shall
always have a trustee with respect to each Series of Securities who satisfies
the requirement of TIA Section 310(a)(1). The Trustee shall always have a
combined capital and surplus of at least $100,000,000 as set forth in its most
recent published annual report of condition.

         The Trustee is subject to TIA Section 310(b), including the optional
provision permitted by the second sentence of TIA Section 310(b)(9), except that
there shall be excluded from the operation of TIA Section 310(b)(1) all
indentures of the Company now or hereafter existing which may be excluded under
the proviso of TIA Section 310(b)(1). Trusteeship under two or more indentures
will be deemed a conflict

                                       46
<PAGE>   52
unless the exceptions provided in TIA Section 310(b) for trusteeships under two
or more indentures apply.

         SECTION 7.11. Preferential Collection of Claims Against Company. The
Trustee is subject to TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been removed shall
be subject to TIA Section 311(a) to the extent indicated.

                                    ARTICLE 8
         SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE; UNCLAIMED
                                     MONIES

         SECTION 8.01. Satisfaction and Discharge of Indenture. If at any time
(a) the Company shall have delivered to the Trustee cancelled or for
cancellation all Securities theretofore authenticated (other than any Securities
which shall have been destroyed, lost or stolen and which shall have been
replaced as provided in Section 2.04), or (b) in the case of any Securities
where the exact amount (including currency of payment) of principal of and
interest due on which can be determined at the time of making the deposit
referred to in clause (ii) below, (i) all the Securities not theretofore
delivered to the Trustee cancelled or for cancellation shall have become due and
payable, or are by their terms to become due and payable within one year or are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption, and (ii) the Company shall
deposit or cause to be deposited with the Trustee as trust funds the entire
amount in cash sufficient to pay at maturity or upon redemption all such
Securities not theretofore delivered to the Trustee cancelled or for
cancellation, including principal and interest due or to become due to such date
of maturity or date fixed for redemption, as the case may be, but excluding,
however, the amount of any moneys for the payment of principal of or interest on
the Securities (1) theretofore deposited with the Trustee and repaid by the
Trustee to the Company in accordance with the provisions of Section 8.05, or (2)
paid to any State or to the District of Columbia pursuant to its unclaimed
property or similar laws, and if in either case the Company shall also pay or
cause to be paid all other sums payable hereunder by the Company, then this
Indenture shall cease to be of further effect with respect to the Securities
(except as to the provisions applicable to transfers and exchanges of Securities
and the obligations of the Company to the Trustee under Section 7.07 which shall
survive) and the Trustee on demand of and at the cost and expense of the
Company, shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture with respect to the Securities. The Company agrees to
reimburse the Trustee for any costs or expenses thereafter reasonably and
properly incurred by the Trustee in connection with this Indenture or the
Securities.

                                       47
<PAGE>   53
         SECTION 8.02. Defeasance upon Deposit of Moneys or U.S. Government
Obligations. In the case of any Securities the exact amount (including the
currency of payment) of principal of and interest due on which can be determined
at the time of making the deposit referred to in clause (1) below at the
Company's option, either (a) the Company shall be deemed to have been Discharged
(as defined below) from its obligations with respect to the Securities on the
91st day after the applicable conditions set forth below have been satisfied or
(b) the Company shall cease to be under any obligation to comply with any term,
provision or condition set forth in Sections 4.03, 4.04, 4.06 and 5.01 with
respect to the Securities at any time after the applicable conditions set forth
below have been satisfied:

                  (1) the Company shall have deposited or caused to be deposited
         irrevocably with the Trustee as trust funds in trust, specifically
         pledged as security for, and dedicated solely to, the benefit of the
         Holders (i) money in an amount, or (ii) U.S. Government Obligations
         which through the payment of interest and principal in respect thereof
         in accordance with their terms will provide, not later than one day
         before the due date of any payment, money in an amount, or (iii) a
         combination of (i) and (ii) sufficient, in the opinion of a nationally
         recognized firm of independent public accountants expressed in a
         written certification thereof delivered to the Trustee, to pay and
         discharge each installment of principal of, and interest on, the
         outstanding Securities on the dates such installments of interest or
         principal are due;

                  (2) if the Securities are then listed on the New York Stock
         Exchange, the Company shall have delivered to the Trustee an Opinion of
         Counsel to the effect that the Company's exercise of its option under
         this paragraph would not cause such Securities to be delisted;

                  (3) no Event of Default or event (including such deposit)
         which with notice or lapse of time would become an Event of Default
         with respect to the Securities shall have occurred and be continuing as
         the date of such deposit;

                  (4) the Company shall have delivered to the Trustee an opinion
         of independent counsel satisfactory to the Trustee to the effect that
         Holders will not recognize income, gain or loss for federal income tax
         purposes as a result of the Company's exercise of its option under this
         Section 8.02 and will be subject to federal income tax on the same
         amount and in the same manner and at the same times as would have been
         the case if such option had not been exercised, which opinion may, but
         is not required to, include or be based upon a ruling to that effect
         received from or published by the Internal Revenue Service.

                                       48
<PAGE>   54
         "DISCHARGED" means that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by, and obligations under the
Securities and to have satisfied all the obligations under this Indenture
relating to the Securities (and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging the same), except (A) the rights
of holders of the Securities to receive, from the trust fund described in clause
(1) above, payment of the principal of and the interest on such Securities when
such payments are due; (B) the Company's obligations with respect to such
Securities under Sections 2.03, 2.04, 2.06, 2.09, 2.10, and 8.03 and (C) the
rights, powers, trusts, duties and immunities of the Trustee hereunder.

         SECTION 8.03. Application of Moneys Deposited. All moneys deposited
with the Trustee pursuant to Section 8.01 or 8.02 shall be held in trust and
applied by it to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent), to the Holders for the
payment or redemption of which such moneys have been deposited with the Trustee,
of all sums due, and to become due thereon for principal and interest.

         SECTION 8.04. Repayment of Moneys Held. In connection with the
satisfaction and discharge of this Indenture with respect to the Securities, all
moneys then held by any Paying Agent under the provisions of this Indenture with
respect to such Securities shall, upon demand of the Company, be repaid to it or
paid to the Trustee and thereupon such Paying Agent shall be released from all
further liability with respect to such moneys.

         SECTION 8.05. Return of Moneys Unclaimed for Two Years. Any moneys
deposited with or paid to the Trustee or any Paying Agent pursuant to any
provision of this Indenture for payment of the principal of or interest on the
Securities and not applied but remaining unclaimed for two years after the date
upon which the principal of or interest on such Securities shall have become due
and payable, shall be repaid to the Company by the Trustee or the Paying Agent
on written demand; and the Holder of any of the Securities shall thereafter look
only to the Company for any payment which such Holder may be entitled to collect
and all liability of the Trustee or any Paying Agent with respect to such moneys
shall thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment with respect to moneys
deposited with it for any payment shall at the expense of the Company, mail by
first-class mail to holders of such Securities at their addresses as they shall
appear on the Register, and shall at the expense of the Company cause to be
published once, in an Authorized Newspaper in the Borough of Manhattan, The City
of New York, and if the Securities are listed on the Luxembourg Stock Exchange,
once in an Authorized Newspaper in Luxembourg, notice, that such moneys remain
and that, after a date specified therein, which shall not be less than thirty
days from the date of such mailing or publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

                                       49
<PAGE>   55
         SECTION 8.06. Indemnity for Government Obligations. The Company shall
pay and shall indemnify the Trustee and each Securityholder in respect of which
the deposit shall have been made against any tax, fee or other charge imposed on
or assessed against deposited U.S. Government Obligations or the principal and
interest received on such obligations.

                                    ARTICLE 9
                             AMENDMENTS AND WAIVERS

         SECTION 9.01. Without Consent of Holders. The Company and the Trustee
may enter into one or more supplemental indentures without consent of any
Securityholder for any of the following purposes:

                  (1) to cure any ambiguity, defect or inconsistency herein or
         in the Securities or to make any other change, provided no such action
         shall adversely affect the rights of any Securityholder; or

                  (2) to comply with Article 5; or

                  (3) to secure the Securities pursuant to Section 4.03; or

                  (4) to add to the rights of the Holders, or to surrender any
         right or power conferred on the Company; or

                  (5) to provide for or confirm the issuance of Additional
         Securities.

         SECTION 9.02. With Consent of Holders.

         (a) With the written consent of the Holders of a majority in principal
amount of the outstanding Securities affected by such supplemental indenture,
the Company and the Trustee may enter into a supplemental indenture to add any
provisions to or to change or eliminate any provisions of this Indenture or of
any supplemental indenture or to modify, in each case in any manner not covered
by Section 9.01, the rights of the Securityholders. The Holders of a majority in
principal amount of the outstanding Securities affected by such waiver, by
notice to the Trustee, may waive compliance by the Company with any provision of
this Indenture, any supplemental indenture or the Securities, provided, however,
without the consent of each Securityholder affected, an amendment or waiver may
not:

                  (1) reduce the amount of Securities whose Holders must consent
         to an amendment or waiver;

                                       50
<PAGE>   56
                  (2) change the rate of or change the time for payment of
         interest on any Security;

                  (3) change the principal of or change the fixed maturity of
         any Security:

                  (4) waive a Default in the payment of the principal of or
         interest on any Security;

                  (5) make any Security payable in money other than that stated
         in the Security; or

                  (6) make any change in Sections 6.06 (third sentence), 6.04
         (last paragraph), or the proviso in the last sentence of Section
         9.02(a).

         (b) It is not necessary under this Section 9.02 for the Securityholders
to consent to the particular form of any proposed supplemental indenture, but it
is sufficient if they consent to the substance thereof.

         (c) Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section 9.02, the
Company shall transmit by mail a notice, setting forth in general terms the
substance of such supplemental indenture, to all Holders, as the names and
addresses of such Holders appear on the Register. Any failure of the Company to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture.

         SECTION 9.03. Compliance with Trust Indenture Act. Every amendment to
this Indenture or the Securities shall be set forth in a supplemental indenture
that complies with the TIA as then in effect.

         SECTION 9.04. Revocation and Effect of Consents. Until an amendment,
direction or waiver becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Security or
portion of a Security that evidences the same debt as the consenting Holder's
Security, even if notation of the consent is not made on any Security. However,
any such Holder or subsequent Holder may revoke the consent as to its Security
or portion of a Security if the Trustee receives the notice of revocation before
the date the amendment, direction or waiver becomes effective. After an
amendment or waiver becomes effective, it shall bind every Securityholder.

         SECTION 9.05. Notation on or Exchange of Securities. The Trustee may,
at the direction of the Company, place an appropriate notation about an
amendment or waiver on any Security thereafter authenticated. The Company in

                                       51
<PAGE>   57
exchange for Securities may issue and the Trustee shall authenticate new
Securities that reflect the amendment or waiver.

         SECTION 9.06. Trustee Protected. The Trustee may require an Officers'
Certificate and an Opinion of Counsel as conclusive evidence that any such
supplemental indenture complies with the applicable provisions of this
Indenture. The Trustee need not sign any supplemental indenture that adversely
affects its rights, duties, obligations and standard of care hereunder.

                                   ARTICLE 10
                                  MISCELLANEOUS

         SECTION 10.01. Trust Indenture Act. (a) This Indenture shall
incorporate and be governed by the provisions of the TIA that are required to be
part of and to govern indentures qualified under the TIA.

         (b) If any provision of this Indenture limits, qualifies, or conflicts
with a provision which is required to be included in this Indenture by the TIA,
the required provision shall control.

         SECTION 10.02. Notices. (a) Unless otherwise herein provided, any
notice or communication by the Company or the Trustee to the other is duly given
if in writing and delivered in person, mailed by first-class mail, or sent by
facsimile transmission (confirmed by hard copy):

            if to the Company to:

                        AT&T Wireless Services, Inc.
                        7277 164th Avenue NE, Building 1
                        Redmond, Washington 98052
                        Attention: Chief Financial Officer
                        Facsimile: (425) [                  ]

            if to the Trustee to:

                        The Bank of New York
                        101 Barclay Street, 21W
                        New York, NY 10286
                        Attention: Corporate Trust
                                   Trustee Administration
                        Facsimile: (212) 815-5915

                                       52
<PAGE>   58
         (b) The Company or the Trustee by notice to the other may designate
additional or different addresses for subsequent notices or communications.

         (c) Any notice or communication to Holders entitled to receive reports
pursuant to Section 4.02(c) shall be mailed by first-class mail, postage
prepaid, to the addresses for Holders shown on the Register or, as to any Global
Security registered in the name of DTC or its nominee, as agreed by the Company,
the Trustee and DTC. Failure to so mail a notice or communication or any defect
in such notice or communication shall not affect its sufficiency with respect to
other Holders entitled to receive notice.

         (d) If a notice or communication is mailed in the manner provided above
within the time prescribed, it is conclusively presumed to have been duly given,
whether or not the addressee receives it.

         (e) If the Company mails a notice or communication to Holders, it shall
mail a copy to the Trustee and to each Agent at the same time.

         (f) If it shall be impractical in the opinion of the Trustee or the
Company to make any publication of any notice required hereby in an Authorized
Newspaper, any publication or other notice in lieu thereof which is made or
given with the approval of the Trustee shall constitute a sufficient publication
of such notice.

         (g) In case, by reason of the suspension of regular mail service, or by
reason of any other cause, it shall be impossible to mail any notice as required
by this Indenture, then such method of notification as shall be made with the
approval of the Trustee shall constitute sufficient mailing of such notice.

         (h) Where this Indenture provides for notice, the notice may be waived
in writing by the Person entitled to receive such notice, either before or after
the event, and the waiver will be the equivalent of the notice. Waivers of
notice by Holders must be filed with the Trustee, but such filing is not a
condition precedent to the validity of any action taken in reliance upon such
waivers.

         SECTION 10.03. Communication by Holders with Other Holders.
Securityholders may communicate pursuant to TIA Section 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA Section 312(c).

         SECTION 10.04. Certificate and Opinion as to Conditions Precedent. Upon
any request or application by the Company to the Trustee to take any action
under this Indenture, the Company shall furnish to the Trustee:

                                       53
<PAGE>   59
                  (1) an Officers' Certificate stating that, in the opinion of
         the signers, all conditions precedent, if any, provided for in this
         Indenture relating to the proposed action have been complied with; and

                  (2) an Opinion of Counsel stating that, in the opinion of such
         counsel, all such conditions precedent have been complied with.

         SECTION 10.05. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

                  (1) a statement that the person making such certificate or
         opinion has read such covenant or condition;

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

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

                  (4) a statement as to whether or not, in the opinion of such
         person, such condition or covenant has been complied with; provided
         that an Opinion of Counsel may rely on an Officers' Certificate or
         certificates of public officials with respect to matters of fact.

         SECTION 10.06. Legal Holidays. A "Legal Holiday" is a Saturday, a
Sunday, or a day on which banking institutions are not required to be open. If a
payment date is a Legal Holiday at a place of payment, payment may be made at
such place on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue for the intervening period.

         SECTION 10.07. Governing Law. This Indenture and each Security shall be
deemed to be a contract made under the laws of the State of New York, and for
all purposes shall be construed in accordance pith the laws of said State
without giving effect to the principles of conflict of laws thereof.

         SECTION 10.08. No Adverse Interpretation of Other Agreements. This
Indenture may not be used to interpret another indenture, loan or debt agreement
of the Company or an Affiliate. No such indenture, loan or debt agreement may be
used to interpret this Indenture.

                                       54
<PAGE>   60
         SECTION 10.09. No Recourse Against Others. No director, officer,
employee or stockholder, as such, of the Company shall have any liability for
any obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. Each Securityholder by accepting a Security waives and releases all
such liability. The waiver and release are part of the consideration for the
issue of the Securities.

         SECTION 10.10. When Treasury Securities Disregarded. In determining
whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or any Affiliate of the Company shall be disregarded, except that for the
purposes of determining whether the Trustee shall be protected in relying on any
such direction, waiver or consent, only Securities which a Responsible Officer
of the Trustee actually knows are so owned shall be so disregarded. Securities
so owned which have been pledged in good faith shall not be disregarded if the
pledges establishes to the satisfaction of the Trustee the pledgee's right so to
act with respect to the Securities and that the pledgee is not the Company or an
Affiliate of the Company.

         SECTION 10.11. Rules by Trustee, Paying Agent, Registrar. The Trustee
may make reasonable rules for action by or a meeting of Securityholders. The
Paying Agent or Registrar may make reasonable rules for its functions.

         SECTION 10.12. Execution in Counterparts. This Indenture may be
executed in any number of counterparts, each of which shall be an original, but
such counterparts shall together constitute but one instrument.

         SECTION 10.13. Judgment Currency. The Company agrees, to the fullest
extent that it may effectively do so under applicable law, that (a) if for the
purpose of obtaining judgment in any court it is necessary to convert any sum
due in respect of the principal of or interest in the Securities (the "REQUIRED
CURRENCY") into a currency in which such judgment will be rendered (the
"JUDGMENT CURRENCY") the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City
of New York the Required Currency with the Judgment Currency on the day on which
final judgment is entered, unless such day is not a New York Banking Day then,
to the extent permitted by applicable law, the rate of exchange used shall be
the rate at which in accordance with normal banking procedures the Trustee could
purchase in The City of New York the Required Currency with the Judgement
Currency on the New York Banking Day preceding the day on which final judgment
is entered and (b) its obligations under this Indenture to make payments in the
Required Currency (i) shall not be discharged or satisfied by any tender, or any
recovery pursuant to any judgment (whether or not entered in accordance with
subsection (a)), in any currency other than the Required Currency, except to the
extent that such tender or recovery shall result in the actual receipt, by the
payee,

                                       55
<PAGE>   61
of the full amount of the Required Currency expressed to be payable in respect
of such payments, (ii) shall be enforceable as an alternative or additional
cause of action for the purpose of recovering in the Required Currency the
amount, if any, by which such actual receipt shall fall short of the full amount
of the Required Currency so expressed to be payable and (iii) shall not be
affected by judgment being obtained for any other sum due not previously
tendered or recovered under this Indenture. For purposes of the foregoing, "NEW
YORK BANKING DAY" means any day except a Saturday, Sunday or a legal holiday in
The City of New York or a day on which banking institutions in The City of New
York are authorized by law or required by executive order to close.

                                       56
<PAGE>   62
                                   SIGNATURES

         IN WITNESS WHEREOF, the parties hereto have caused the Indenture to be
duly executed as of the date first written above.

                                        AT&T WIRELESS SERVICES, INC.
                                        as Issuer

                                        By:

                                                Name:
                                                Title:

                                        THE BANK OF NEW YORK
                                        as Trustee

                                        By:

                                                Name:
                                                Title:
<PAGE>   63
                                                                       EXHIBIT A

                      Permanent Global Registered Security

                [INSERT RESTRICTED LEGEND, DTC LEGEND, TEMPORARY
                 OFFSHORE GLOBAL SECURITY LEGEND, AS APPLICABLE]

                          AT&T WIRELESS SERVICES, INC.

                        [$ 7.350% Senior Notes due 2006/
                         $ 7.875% Senior Notes due 2011/
                       $ 8.750% Senior Notes due 2031](1)

[                    ]                                         CUSIP NO. _______

         AT&T Wireless Services, Inc., a Delaware corporation (herein referred
to as the "COMPANY"), for value received, hereby promises to pay to CEDE & Co.,
or registered assigns the principal sum of [$       on March 1, 2006/$     on
March 1, 2011/$     on March 1, 2031 for the 2031 Notes] (2) and to pay interest
semiannually on March 1 and September 1, commencing September 1, 2001, on said
principal sum at the rate per annum specified in the title of these Notes (plus
any Additional Interest and Additional Amounts, as set forth in the Indenture
referred to herein), from September 1, 2001 until the principal thereof is paid
or made available for payment. Interest will accrue from March 1, 2001, and will
be computed on the basis of a 360-day year of twelve 30-day months.

         Reference is hereby made to further provisions of this global security
(the "GLOBAL SECURITY") set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth in this
place.

         This Global Security shall not be valid or become obligatory for any
purpose until the certificate of authentication hereon shall have been executed
by the Trustee under the Indenture referred to herein.

__________________
(1)Insert as applicable.
(2)Insert as applicable.
<PAGE>   64
         IN WITNESS WHEREOF, AT&T Wireless Services, Inc. has caused this Global
Security to be duly executed manually or by facsimile by a duly authorized
officer.

                                             AT&T Wireless Services, Inc.

                                             By:__________________________

                                                Name:
                                                Title:

TRUSTEE'S CERTIFICATE
OF AUTHENTICATION

This is one of the Securities
described in the within-mentioned
Indenture.

Dated:

THE BANK OF NEW YORK,
  As Trustee

By:___________________________
       Authorized Signatory

<PAGE>   65
                                REVERSE OF NOTES

            Principal and Interest

            Payment of the principal of, premium, if any, and interest on, this
Global Security will be made in immediately available funds at the office or
agency of the Trustee maintained for that purpose in the Borough of Manhattan,
The City of New York, State of New York, in such coin or currency of the United
States of America as at the time of payment shall be legal tender for payment of
public and private debts; provided, however, that at the option of the Company
payment of interest on any Notes issued in definitive form other than interest
due at the Maturity Date shown above may be made by check mailed to the address
of the person entitled thereto as such address shall appear in the Note
register. Interest will be paid thereto persons in whose names the Notes are
registered at the close of business on the February 15 or August 15, as the case
may be, prior to any interest payment date. Except as otherwise set forth in the
Indenture, Notes in definitive form will not be issued.

            Additional Registration Rights Interest

            The Holder of this Global Security is entitled to the benefits of
the Registration Rights Agreement, dated March 1, 2001, between the Company and
the Initial Purchasers named therein (the "Registration Rights Agreement"). In
the event that (i) an Exchange Offer Registration Statement (as defined in the
Registration Rights Agreement) or a Shelf Registration Statement (as defined in
the Registration Rights Agreement) is not filed with the SEC on or prior to the
180th day following the Issue Date, (ii) an Exchange Offer Registration
Statement is not declared effective on or prior to the 240th day following the
Issue Date (unless a Shelf Registration Statement shall have been filed) or
(iii) the Exchange Offer is not consummated or a Shelf Registration Statement is
not declared effective on or prior to the 270th day following the Issue Date,
the interest rate on the Notes will be increased by 0.25% per annum from and
including the next day following the applicable period referred to in clauses
(i) through (iii); provided that the interest rate on the Notes pursuant to the
foregoing will in no event increase by more than 0.25% per annum in the
aggregate; and provided further that if the Exchange Offer Registration
Statement is not declared effective on or prior to the 240th day following the
Issue Date and the Company requests Holders of the Registrable Securities to
provide the information as described in Section 3 of the Registration Rights
Agreement, the Notes held by Holders who do not deliver such information to the
Company when so requested will not be entitled to any such increase in the
interest rate for any day after the 240th day following the Issue Date. Upon (A)
the filing of an Exchange Offer Registration Statement after the 180-day period
referred to in clause (i), (B) the effectiveness of an Exchange Offer
Registration Statement after the 240-day period referred to in clause (ii) or
<PAGE>   66
(C) the consummation of the Exchange Offer or the effectiveness of a Shelf
Registration Statement, as the case may be, after the 270-day period referred to
in clause (iii), in each case the interest rate on the Notes from the day of
such filing, effectiveness or consummation, as the case may be, shall be reduced
to the original interest rate of the Notes as of March 1, 2001.(3)

            Additional Trigger Event Interest

            If the Triggering Event occurs, Additional Trigger Event Interest as
calculated below will be payable on the Notes.

            The "Triggering Event" will occur if:

            (1) NTT DoCoMo has notified AT&T Corp. ("AT&T") of its intention to
require AT&T to repurchase the securities sold to AT&T pursuant to the
investment agreement with AT&T and the Company dated December 20, 2000 (the
"DoCoMo Agreement") as a consequence of AT&T not completing the split-off of
the Company within the time periods set forth in the DoCoMo Agreement; and

            (2) As a consequence of (1), Moody's or Standard & Poor's has
reduced the credit rating of the Notes below Baa2 (in the case of Moody's) or
below BBB (in the case of Standard & Poor's);

            provided that such reduction must occur upon or within 60 days after
the occurrence of the date on which DoCoMo provides notice as described in (1);
provided further that such 60-day period shall be extended so long as the rating
of the Notes is under publicly announced consideration by either Moody's or
Standard & Poor's (A) where the rating of the Notes is under publicly announced
consideration for possible downgrading, or (B) where the rating of the Notes is
under publicly announced consideration, but where no direction of grading is
initially indicated by the rating agency, including classifications such as
"Credit Watch Developing" or such other similar classifications used by such
agencies.

            "Additional Trigger Event Interest" shall be calculated, from time
to time, as follows (it being understood that each adjustment is independent of
the others):

            (a) If the rating of the Notes from Moody's is decreased to Baa3,
the interest rate will increase by 0.25% in addition to the increases described
in (b) and (d), if applicable.

------------------
(3)Include only for Initial Security or Initial Additional Security.
<PAGE>   67
            (b) If the rating of the Notes from Standard & Poor's is decreased
to BBB-, the interest rate will increase by 0.25% in addition to the increases
described in (a) and (c), if applicable.

            (c) If the rating of the Notes from Moody's is decreased to below
Baa3, the interest rate will increase by 0.75% in addition to the increases
described in (a), (b) and (d), if applicable.

            (d) If the rating of the Notes from Standard & Poor's is decreased
to below BBB-, the interest rate will increase by 0.75% in addition to the
increases described in (a), (b) and (c), if applicable.

            In no event will the total increase in interest rates described in
(a) through (d) exceed 2.00% per annum.

            If after the Triggering Event has occurred, Moody's or Standard &
Poor's subsequently increase their ratings of the Notes to or above any of the
thresholds set forth above, the interest rate on the Notes will be readjusted
downwards by the amounts by which it was previously increased. In no event will
such adjustments cause the interest rate to be lower than the initial interest
rate. Additional Trigger Event Interest shall cease to be payable after the date
on which the credit rating of the Notes is increased to Baa2, in the case of
Moody's, and BBB, in the case of Standard & Poor's.

            The Notes will bear interest at their initial interest rate from
March 1, 2001 until the last interest payment date of the Notes occurring prior
to a downgrade requiring an adjustment. Beginning with the first day of the
first interest period for the Notes during which a rating change requires an
adjustment in the interest rate, the Notes will bear interest at the adjusted
rate. Subsequent interest rate adjustments will also become effective on the
first day of the interest period in which the rating change occurs requiring
such adjustment.

            Additional Tax Amounts

            The Company shall, subject to the following paragraph, pay as
additional interest on the Notes such additional amounts (the "Additional
Amounts") as are necessary so that the net payment by the Company or a Paying
Agent of the principal of and interest on the Notes to a person that is not a
U.S. Holder, after deduction for any present or future tax, assessment or
governmental charge of the United States or a political subdivision or taxing
authority thereof of therein, imposed by withholding with respect to the
payment, will not be less than the amount that would have been payable in
respect of the Notes had no such withholding or deduction been required.
<PAGE>   68
            The obligation of the Company to pay any Additional Amount under the
preceding paragraph shall not apply:

                  (i) to a tax, assessment or governmental charge that is
         imposed or withheld solely because the Holder, or a fiduciary, settlor,
         beneficiary, member or shareholder of the Holder if the Holder is an
         estate, trust, partnership or corporation, or a person holding a power
         over an estate or trust administered by a fiduciary holder:

                           (1) is or was present or engaged in trade or business
                  in the United States or has or had a permanent establishment
                  in the United States;

                           (2) has a current or former relationship with the
                  United States, including a relationship as a citizen or
                  resident thereof;

                           (3) is or has been a foreign or domestic personal
                  holding company, a passive foreign investment company or a
                  controlled foreign corporation with respect to the United
                  States or a corporation that has accumulated earnings to avoid
                  United States federal income tax; or

                           (4) is or was a "10-percent shareholder" of the
                  Company as defined in section 871(h)(3) of the United States
                  Internal Revenue Code or any successor provision;

                  (ii) to any Holder that is not the sole beneficial owner of
         the Notes, or a portion thereof, or that is a fiduciary or partnership,
         but only to the extent that the beneficial owner, a beneficiary or
         settlor with respect to the fiduciary, or a member of the partnership
         would not have been entitled to the payment of an Additional Amount had
         such beneficial owner, beneficiary, settlor or member received directly
         its beneficial or distributive share of the payment;

                  (iii) to a tax, assessment or governmental charge that is
         imposed or withheld solely because the Holder or any other person
         failed to comply with certification, identification or information
         reporting requirements concerning the nationality, residence, identity
         or connection with the United States of the Holder or beneficial owner
         of the Notes, if compliance is required by statute, by regulation of
         the United States Treasury Department or by an applicable income tax
         treaty to which the United States is a party as a precondition to
         exemption from such tax, assessment or other governmental charge;
<PAGE>   69
                  (iv) to a tax, assessment or governmental charge that is
         imposed other than by withholding by the Company or a Paying Agent from
         the payment;

                  (v) to a tax, assessment or governmental charge that is
         imposed or withheld solely because of a change in law, regulation, or
         administrative or judicial interpretation that becomes effective more
         than 15 days after the payment becomes due or is duly provided for,
         whichever occurs later;

                  (vi) to an estate, inheritance, gift, sales, excise, transfer,
         wealth or personal property tax or a similar tax, assessment or
         governmental charge;

                  (vii) to any tax, assessment or other governmental charge any
         Paying Agent must withhold from any payment of principal or of interest
         on any Note, if such payment can be made without such withholding by
         any other Paying Agent; or

                  (viii) in the case of any combination of the above items.

         The Notes are subject in all cases to any tax, fiscal or other law or
regulation or administrative or judicial interpretation applicable. Except as
specifically provided under the foregoing paragraphs, there is no obligation of
the Company to make any payment with respect to any tax, assessment or
governmental charge imposed by any government or a political subdivision or
taxing authority with respect or in connection with the Notes.

         "U.S. Holder" means a beneficial owner of a Note that is, for United
States federal income tax purposes, (a) a citizen or resident of the United
States, (b) a corporation, partnership or other entity created or organized in
or under the laws of the United States or of any political subdivision thereof,
(c) an estate or trust the income of which is subject to United States federal
income taxation regardless of its source or (d) any other Person whose income
from a Note is effectively connected with the conduct of a United States trade
or business.

         Indenture

         These Notes are one of a duly authorized issue of securities of the
Company, issued and to be issued under and pursuant to an indenture dated as of
March 6, 2001 (herein referred to as the "Indenture"), duly executed and
delivered by the Company to The Bank of New York, as trustee (herein referred to
as the "Trustee"), to which Indenture and any indentures supplemental thereto
reference is hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Trustee, the Company and
the Holder (the words "Holders" or "Holder" meaning the registered holders or
registered holder) of these Notes.

<PAGE>   70

     Defaults

     In case an Event of Default with respect to the Notes, as defined in the
Indenture, shall have occurred and be continuing, the principal hereof may be
declared, and upon such declaration shall become due and payable in the manner,
with the effect and subject to the conditions provided in the Indenture.

     Amendments and Waivers

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

     Suits by Holders

     The Indenture contains provisions setting forth certain conditions to the
institution of proceedings by Holders of Notes with respect to the Indenture or
for any remedy under the Indenture.

     Obligation to Pay Principal and Interest Absolute

     No reference herein to the Indenture and no provision of this Global
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of, premium,
if any, and interest on, these Notes at the places, at the respective times, at
the rate and in the coin or currency herein prescribed.

     Registered Form

     The Notes are issuable as registered Notes without coupons in denominations
of U.S. $1,000 or any amount in excess thereof which is a multiple of U.S.
$1,000 at the office or agency of the Trustee referred to above and in the

<PAGE>   71

manner and subject to the limitations provided in the Indenture. Notes may be
exchanged without service charge for like aggregate principal amount of Notes.

     Optional Redemption

     The Notes will be redeemable, as a whole or in part, at the option of the
Company, at any time or from time to time, on at least 30 days, but not more
than 90 days, prior notice mailed to the registered address of each holder of
the Notes. The redemption prices will be equal to the greater of (1) 100% of the
principal amount of the Notes to be redeemed or (2) the sum of the present
values of the Remaining Scheduled Payments (as defined below) discounted, on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months),
at a rate equal to the sum of the Treasury Rate (as defined below) and 30 basis
points for the 2006 Notes, 40 basis points for the 2011 Notes and 50 basis
points for the 2031 Notes.

     In the case of each of clause (1) and (2), accrued interest will be payable
to the redemption date.

     "Treasury Rate" means, with respect to any redemption date, the rate per
annum equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date.

     "Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Notes to be redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such Notes. "Independent Investment Banker" means one of the
Reference Treasury Dealers appointed by the Company.

     "Comparable Treasury Price" means, with respect to any redemption date, (1)
the average of the Reference Treasury Dealer Quotations for such redemption date
after excluding the highest and lowest of such Reference Treasury Dealer
Quotations, or (2) if the Trustee obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such quotations. "Reference
Treasury Dealer Quotations" means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Trustee, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the Trustee
by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third
business day preceding such redemption date.

<PAGE>   72

     "Reference Treasury Dealer" means each of Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Salomon Smith Barney Inc. plus three others of the initial
purchasers (as described in the offering memorandum dated March 1, 2001,
relating to the offering of the Notes) that are U.S. Government securities
dealers and their respective successors or, if any of the foregoing shall cease
to be a primary U.S. Government securities dealer (a "Primary Treasury Dealer"),
another nationally recognized investment banking firm that is a Primary Treasury
Dealer to be substituted by the Company.

     "Remaining Scheduled Payments" means, with respect to each Note to be
redeemed, the remaining scheduled payments of principal of and interest on such
Note that would be due after the related redemption date but for such
redemption. If such redemption date is not an interest payment date with respect
to such Note, the amount of the next succeeding scheduled interest payment on
such Note will be reduced by the amount of interest accrued on such Note to such
redemption date.

     Redemption upon a Tax Event

     If (i) the Company becomes or will become obligated to pay any Additional
Amounts pursuant to Section 4.06(a) of the Indenture (and as referred to above)
as a result of any change in, or amendment to, the laws (or any regulations or
rulings promulgated thereunder) of the United States (or any political
subdivision or taxing authority thereof or therein), or any change in, or
amendments to, any official position regarding the application or interpretation
of such laws, regulations or rulings, which change or amendment is announced or
becomes effective on or after the date hereof, or (ii) a taxing authority of the
United States takes an action on or after the date hereof, whether or not with
respect to the Company or any Affiliate, that results in a substantial
probability that the Company will or may be required to pay any such Additional
Amounts, then the Company may, at its option, redeem, as a whole, but not in
part, the Notes on any interest payment date at a redemption price equal to 100%
of their principal amount, together with interest accrued thereon to the date
fixed for redemption; provided that the Company determines, in its business
judgment, that the obligation to pay such additional amounts cannot be avoided
by the use of reasonable measures available to the Company, not including
substitution of the obligor under the Notes. No redemption pursuant to clause
(ii) above may be made unless the Company shall have received an opinion of
independent counsel to the effect that an act taken by a taxing authority of the
United States results in a substantial probability that the Company will or may
be required to pay the Additional Amounts under Section 4.06(a) of the Indenture
and the Company shall have delivered to the Trustee a certificate, signed by a
duly authorized officer stating, that based on such opinion the Company is
entitled to redeem the Notes pursuant to their terms.

<PAGE>   73

     Registration of Transfers

     Upon due presentment for registration of transfer of this Note at the
above-mentioned office or agency of the Trustee, a new Global Security or Notes
of authorized denominations, for a like aggregate principal amount will be
issued to the transferee as proved in the Indenture. No service charge shall be
made for any such transfer, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto.

     Holder May be Deemed Absolute Owner

     The Company, the Trustee, and any agent of the Company or the Trustee
may deem and treat the Holder hereof as the absolute owner hereof (whether or
not this Global Security shall be overdue and notwithstanding any notation of
ownership or other writing hereon) for the purpose of receiving payment of or on
account of the principal hereof and subject to the provisions above, of premium
or interest thereon, and for all other purposes and neither the Company nor the
Trustee nor any such agent shall be affected by any notice to the contrary.

     No Recourse Against Others

     No recourse shall be had for the payment of the principal of, premium, if
any, or the interest on, this Global Security or for any claim based hereon, or
otherwise in respect hereof, or based on or in respect of the Indenture or any
indenture supplemental thereto, against any incorporator, shareholder, officer
or director as such, past, present of future, of the Company or of any successor
corporation, either directly or through the Company or of any successor
corporation whether by virtue of any constitution, statute or rule of law or by
the enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.

     Governing Law

     This Global Security shall be deemed to be a contract made under the laws
of the State of New York and for all purposes shall be governed by and construed
in accordance with the laws of said State, without giving effect to the
principles of conflicts of laws thereof.

     All terms used in this Global Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture; provided that the
terms "Note" or "Notes" as used in this Global Security shall have the meaning
assigned to the defined terms "Security" or "Securities" as used in the
Indenture.

<PAGE>   74

                                  ABBREVIATIONS

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

        TEN COM       -    as tenants in common

        TEN ENT       -    as tenants by the entireties

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

        UNIF GIFT NUN ACT - ________________(Cust)___________(Minor)

        Under Uniform Gifts to Minor Act  ________________(State)

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

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

[PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE]

________________________________________________________________________________

________________________________________________________________________________

[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE,
OF ASSIGNEE]

________________________________________________________________________________

________________________________________________________________________________

the within Notes and all fights thereunder, hereby irrevocably constituting and
appointing such person attorney to transfer such Note on the books of the
Company, with full power of substitution in the premises.

Date: __________________________________________________________________________

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

<PAGE>   75

     [THE FOLLOWING PROVISION TO BE INCLUDED ON ALL CERTIFICATES BEARING A
RESTRICTED LEGEND]

     In connection with any transfer of this Security occurring prior to April
14, 2001, the undersigned confirms that such transfer is made without utilizing
any general solicitation or general advertising and further as follows:

                                    Check One

/ / (1) This Security is being transferred to a "qualified institutional buyer"
in compliance with Rule 144A under the Securities Act of 1933, as amended and
certification in the form of Exhibit E to the Indenture is being furnished
herewith.

/ / (2) This Security is being transferred to a Non-U.S. Person in compliance
with the exemption from registration under the Securities Act of 1933, as
amended, provided by Regulation S thereunder, and certification in the form of
Exhibit D to the Indenture is being furnished herewith.

                                       or

/ / (3) This Security is being transferred other than in accordance with (1) or
(2) above and documents are being furnished which comply with the conditions of
transfer set forth in this Security and the Indenture.

        If none of the foregoing boxes is checked, the Trustee is not obligated
to register this Security in the name of any Person other than the Holder hereof
unless and until the conditions to any such transfer of registration set forth
herein and in the Indenture have been satisfied.

Date:____________________                   __________________________
                                            Seller

                                            By________________________

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

Signature Guarantee:(4) _______________________________

________

     (4) 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.

<PAGE>   76

                      By______________________________
                      To be executed by an executive officer

<PAGE>   77

                            SCHEDULE OF EXCHANGES OF NOTES(1)

     The following exchanges of a part of this Global Security for Physical
Securities or a part of another Global Security have been made:

<TABLE>
<CAPTION>
                                                                   PRINCIPAL AMOUNT OF
                                                                   THIS GLOBAL NOTE
                     AMOUNT OF DECREASE    AMOUNT OF INCREASE      FOLLOWING SUCH           SIGNATURE OF
                    IN PRINCIPAL AMOUNT    IN PRINCIPAL AMOUNT     DECREASE (OR             AUTHORIZED SIGNATORY
DATE OF EXCHANGE    OF THIS GLOBAL NOTE    OF THIS GLOBAL NOTE       INCREASE)              OF TRUSTEE
----------------    -------------------    -------------------     -------------------      ----------
<S>                 <C>                    <C>                     <C>                      <C>
</TABLE>

--------

(1)  For Global Securities

<PAGE>   78

                                                                       EXHIBIT B

                                RESTRICTED LEGEND

     THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER

     (1) REPRESENTS THAT

          (A) IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A "QUALIFIED
     INSTITUTIONAL BUYER" (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES
     ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH
     SUCH ACCOUNT OR

          (B) IT IS NOT A U.S. PERSON (WITHIN THE MEANING OF REGULATION S UNDER
     THE SECURITIES ACT) AND

     (2) AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL,
PLEDGE OR OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL INTEREST HEREIN, EXCEPT
IN ACCORDANCE WITH THE SECURITIES ACT AND ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES AND ONLY

          (A) TO THE COMPANY,

          (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE
     UNDER THE SECURITIES ACT,

          (C) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A
     UNDER THE SECURITIES ACT,

          (D) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF
     REGULATION S UNDER THE SECURITIES ACT,

          (E) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
     UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE
     REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH 2(C) ABOVE OR
(2)(D) ABOVE, A DULY COMPLETED AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE
OBTAINED

<PAGE>   79

FROM THE TRUSTEE) MUST BE DELIVERED TO THE TRUSTEE. PRIOR TO THE REGISTRATION OF
ANY TRANSFER IN ACCORDANCE WITH (2)(E) ABOVE, THE COMPANY RESERVES THE RIGHT TO
REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS
MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS
BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY RULE 144 EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

<PAGE>   80

                                                                       EXHIBIT C

                                   DTC LEGEND

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

     TRANSFERS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS
MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE INDENTURE.

<PAGE>   81

                                                                       EXHIBIT D

                            Regulation S Certificate

                                                                 _________,_____

The Bank of New York
101 Barclay Street, 21W
New York, NY 10286
Attention: Corporate Trust Trustee Administration

        Re:    ATT&T Wireless Services, Inc.
               [7.350% Senior Notes due March 1, 2006/7.875% Senior Notes due
               March 1, 2011/8.750% Senior Notes due March 1, 2031](2) (the
               "SECURITIES")

               Issued under the Indenture (the "INDENTURE") dated as as of March
               1, 2001

Dear Sirs:

     Terms are used in this Certificate as used in Regulation S ("Regulation S")
under the Securities Act of 1933, as amended (the "Securities Act"), except as
otherwise stated herein.

     [CHECK A OR B AS APPLICABLE.]

    [ ] A.  This Certificate relates to our proposed transfer of $____ principal
            amount of Securities issued under the Indenture.  We hereby certify
            as follows:

          1.   The offer and sale of the Securities was not and will not be made
               to a person in the United States (unless such person is excluded
               from the definition of "U.S. person" pursuant to Rule
               902(k)(2)(vi) or the account held by it for which it is acting is
               excluded from the definition of "U.S. person" pursuant to Rule
               902(k)(2)(i) under the circumstances described in Rule 902(g)(3))
               and such offer and sale was not and will not be specifically
               targeted at an identifiable group of U.S. citizens abroad.

          2.   Unless the circumstances described in the parenthetical in
               paragraph 1 above are applicable, either (a) at the time the buy
               order was originated, the buyer was outside the United States or
               we and any person acting on our behalf reasonably believed that
               the buyer was outside the United States or (b) the transaction
               was executed in, on or through the facilities of

_________

(2)  Insert as applicable

<PAGE>   82

               a designated offshore securities market, and neither we nor any
               person acting on our behalf knows that the transaction was
               pre-arranged with a buyer in the United States.

          3.   Neither we, any of our affiliates, nor any person acting on our
               or their behalf has made any directed selling efforts in the
               United States with respect to the Securities.

          4.   The proposed transfer of Securities is not part of a plan or
               scheme to evade the registration requirements of the Securities
               Act.

          5.   If we are a dealer or a person receiving a selling concession,
               fee or other remuneration in respect of the Securities, and the
               proposed transfer takes place during the Restricted Period (as
               defined in the Indenture), or we are an officer or director of
               the Company or an Initial Purchaser (as defined in the
               Indenture), we certify that the proposed transfer is being made
               in accordance with the provisions of Rule 904(b) of Regulation S.

   [ ] B.   This Certificate relates to our proposed exchange of $____
            principal amount of Securities issued under the Indenture for an
            equal principal amount of Securities to be held by us. We hereby
            certify as follows:

          1.   At the time the offer and sale of the Securities was made to us,
               either (i) we were not in the United States or (ii) we were
               excluded from the definition of "U.S. person" pursuant to Rule
               902(k)(2)(vi) or the account held by us for which we were acting
               was excluded from the definition of "U.S. person" pursuant to
               Rule 902(k)(2)(i) under the circumstances described in Rule
               902(g)(3); and we were not a member of an identifiable group of
               U.S. citizens abroad.

          2.   Unless the circumstances described in paragraph 1(ii) above are
               applicable, either (a) at the time our buy order was originated,
               we were outside the United States or (b) the transaction was
               executed in, on or through the facilities of a designated
               offshore securities market and we did not pre-arrange the
               transaction in the United States.

          3.   The proposed exchange of Securities is not part of a plan or
               scheme to evade the registration requirements of the Securities
               Act.

<PAGE>   83

     You and the Company are entitled to rely upon this Certificate and are
irrevocably authorized to produce this Certificate or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                    Very truly yours,

                                    [NAME OF SELLER (FOR TRANSFERS)
                                         OR OWNER (FOR EXCHANGES)]

                                    By:
                                        ---------------------------------------
                                         Name:
                                         Title:
                                         Address:
Date:
     -------------------------

<PAGE>   84

                                                                       EXHIBIT E

                              Rule 144A Certificate

                                                                 ________,______

The Bank of New York
101 Barclay Street, 21W
New York, NY 10286
Attention: Corporate Trust Trustee Administration

        Re:    ATT&T Wireless Services, Inc.
               [7.350% Senior Notes due March 1, 2006/7.875% Senior Notes due
               March 1, 2011/8.750% Senior Notes due March 1, 2031](3) (the
               "SECURITIES")

               Issued under the Indenture (the "INDENTURE") dated as as of
               March 1, 2001

Ladies and Gentlemen:

        TO BE COMPLETED BY PURCHASER IF (1) ABOVE IS CHECKED.

        This Certificate relates to:

        [CHECK A OR B AS APPLICABLE.]

    [ ] A.  Our proposed purchase of $____ principal amount of Securities
            issued under the Indenture.

    [ ] B.  Our proposed exchange of $____ principal amount of Securities
            issued under the Indenture for an equal principal amount of
            Securities to be held by us.

     We and, if applicable, each account for which we are acting, are a
qualified institutional buyer within the meaning of Rule 144A ("Rule 144A")
under the Securities Act of 1933, as amended (the "Securities Act"). If we are
acting on behalf of an account, we exercise sole investment discretion with
respect to such account. We are aware that the transfer of Securities to us, or
such exchange, as applicable, is being made in reliance upon the exemption from
the provisions of Section 5 of the Securities Act provided by Rule 144A. Prior
to the date of this Certificate we have received such information regarding the
Company as we have requested pursuant to Rule 144A(d)(4) or have determined not
to request such information.

     You and the Company are entitled to rely upon this Certificate and are
irrevocably authorized to produce this Certificate or a copy hereof to any

_______

(3) Insert as applicable

<PAGE>   85

interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                    Very truly yours,

                                    [NAME OF PURCHASER (FOR
                                         TRANSFERS) OR OWNER (FOR
                                         EXCHANGES)]

                                    By:
                                       ---------------------------------------
                                         Name:
                                         Title:
                                         Address:
Date:
     -------------------------

<PAGE>   86

                                                                       EXHIBIT F

                  [COMPLETE FORM I OR FORM II AS APPLICABLE.]

                                    [FORM I]

                      Certificate of Beneficial Ownership

To:     The Bank of New York
        101 Barclay Street, 21W
        New York, NY 10286
        Attention: Corporate Trust Trustee Administration OR

        [Euroclear Bank S.A./N.V., as operator of the Euroclear System] OR

        [Clearstream Banking SA]

        Re:    ATT&T Wireless Services, Inc.
               [7.350% Senior Notes due March 1, 2006/7.875% Senior Notes due
               March 1, 2011/8.750% Senior Notes due March 1, 2031](4) (the
               "SECURITIES")

               Issued under the Indenture (the "INDENTURE") dated as as of
               March 1, 2001

Ladies and Gentlemen:

        We are the beneficial owner of $____ principal amount of Securities
issued under the Indenture and represented by a Temporary Offshore Global
Security (as defined in the Indenture).

        We hereby certify as follows:

        [CHECK A OR B AS APPLICABLE.]

      [ ] A.   We are a non-U.S. person (within the meaning of Regulation S
               under the Securities Act of 1933, as amended).

      [ ] B.   We are a U.S. person (within the meaning of Regulation S under
               the Securities Act of 1933, as amended) that purchased the
               Securities in a transaction that did not require registration
               under the Securities Act of 1933, as amended.

        You and the Company are entitled to rely upon this Certificate and are
irrevocably authorized to produce this Certificate or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

__________

(4) Insert as applicable

<PAGE>   87

                                    Very truly yours,

                                    [NAME OF BENEFICIAL OWNER]

                                    By:
                                        __________________________________
                                         Name:
                                         Title:
                                         Address:
Date:
     _____________________________

                                    [FORM II]

                       Certificate of Beneficial Ownership

To:     The Bank of New York
        101 Barclay Street, 21W
        New York, NY 10286
        Attention: Corporate Trust Trustee Administration

        Re:    AT&T Wireless Services, Inc.
               [7.350% Senior Notes due March 1, 2006, 7.875% Senior Notes due
               March 1, 2011, 8.750% Senior Notes due March 1, 2031](5) (the
               "SECURITIES")

               Issued under the Indenture (the "INDENTURE") dated as as of
               March 1, 2001

Ladies and Gentlemen:

        This is to certify that based solely on certifications we have received
in writing, by tested telex or by electronic transmission from member
organizations ("Member Organizations") appearing in our records as persons being
entitled to a portion of the principal amount of Securities represented by a
Temporary Offshore Global Security issued under the above-referenced Indenture,
that as of the date hereof, $____ principal amount of Securities represented by
the Temporary Offshore Global Security being submitted herewith for exchange is
beneficially owned by persons that are either (i) non-U.S. persons (within the
meaning of Regulation S under the Securities Act of 1933, as amended) or (ii)
U.S. persons that purchased the Securities in a transaction that did not require
registration under the Securities Act of 1933, as amended.

        We further certify that (i) we are not submitting herewith for exchange
any portion of such Temporary Offshore Global Security excepted in such Member
Organization certifications and (ii) as of the date hereof we have not received
any notification from any Member Organization to the effect that the statements
made

________

(5) Insert as applicable

<PAGE>   88

by such Member Organization with respect to any portion of such Temporary
Offshore Global Security submitted herewith for exchange are no longer true and
cannot be relied upon as of the date hereof.

        You and the Company are entitled to rely upon this Certificate and are
irrevocably authorized to produce this Certificate or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                    Yours faithfully,

                                    [EUROCLEAR BANK S.A./N.V., as
                                         operator of the Euroclear System]

                                                OR

                                    [CLEARSTREAM BANKING SA]

                                    By:
                                       ---------------------------------------
                                         Name:
                                         Title:
                                         Address:
Date:
      -------------------------

<PAGE>   89

                                                                       EXHIBIT G

THIS NOTE IS A TEMPORARY GLOBAL NOTE. PRIOR TO THE EXPIRATION OF THE RESTRICTED
PERIOD APPLICABLE HERETO, BENEFICIAL INTERESTS HEREIN MAY NOT BE HELD BY ANY
PERSON OTHER THAN (1) A NON-U.S. PERSON OR (2) A U.S. PERSON THAT PURCHASED SUCH
INTEREST IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"). BENEFICIAL INTERESTS HEREIN ARE NOT
EXCHANGEABLE FOR PHYSICAL NOTES OTHER THAN A PERMANENT GLOBAL NOTE IN ACCORDANCE
WITH THE TERMS OF THE INDENTURE. TERMS IN THIS LEGEND ARE USED AS USED IN
REGULATION S UNDER THE SECURITIES ACT.<PAGE>   1
                                                                    EXHIBIT 10.1

                      SEPARATION AND DISTRIBUTION AGREEMENT

                                 BY AND BETWEEN

                                  AT&T CORP.,

                                       and

                         AT&T WIRELESS SERVICES, INC.

                            Dated as of June 4, 2001
<PAGE>   2
                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                Page
                                                                                ----
<S>                                                                             <C>
                                    ARTICLE I

                                   Definitions

                                   ARTICLE II

                                 The Separation

2.1.  Transfer of Assets and Assumption of Liabilities......................    18
2.2.  Termination of Agreements.............................................    20
2.3.  Documents Relating to Transfer of Real Property Interests and
      Tangible Property Located Thereon.....................................    21
2.4.  Documents Relating to Other Transfers of Assets and Assumption of
      Liabilities...........................................................    23
2.5.  Ancillary Agreements..................................................    23
2.6.  Disclaimer of Representations and Warranties..........................    23
2.7.  Governmental Approvals and Consents...................................    24
2.8.  Novation of Additional and Other Wireless Group Liabilities...........    25
2.9.  Satisfaction of Intercompany Debt and Preferred Stock.................    26
2.10. Joint Purchasing Arrangements.........................................    26
2.11. Certain Additional Transactions.......................................    27
2.12. Intellectual Property Matters.........................................    30
2.13. Wireless Constituent Documents........................................    30

                                   ARTICLE III

         Actions Pending the Mandatory Exchange and the Distribution

3.1.  Transactions Prior to the Mandatory Exchange and the Distribution.....    30
3.2.  Additional Distribution...............................................    31

                                   ARTICLE IV

                             The Mandatory Exchange

4.1.  The Mandatory Exchange................................................    31
4.2.  Actions Prior to the Mandatory Exchange...............................    32
4.3.  Conditions to Mandatory Exchange......................................    32
4.4.  Fractional Shares.....................................................    34
</TABLE>

                                      -i-
<PAGE>   3
<TABLE>

<S>                                                                            <C>
                                    ARTICLE V

                                The Distribution

5.1.   The Distribution......................................................   34
5.2.   Actions Prior to the Distribution.....................................   35
5.3.   Conditions to Distribution............................................   36
5.4.   Fractional Shares.....................................................   36

                                   ARTICLE VI

                        Mutual Releases; Indemnification

6.1.   Release of Pre-Closing Claims.........................................   37
6.2.   Indemnification by Wireless...........................................   39
6.3.   Indemnification by Parent.............................................   40
6.4.   Indemnification Obligations Net of Insurance Proceeds and Other
       Amounts...............................................................   41
6.5.   Procedures for Indemnification of Third Party Claims..................   42
6.6.   Additional Matters....................................................   44
6.7.   Remedies Cumulative...................................................   44
6.8.   Survival of Indemnities...............................................   44
6.9.   Combined Service Claims; Similar Matters..............................   44
6.10.  Specified Matters.....................................................   45
6.11.  IPR Exception.........................................................   45

                                   ARTICLE VII

                       Insurance and Certain Other Matters

7.1.   Insurance Matters.....................................................   45
7.2.   Certain Post-Distribution Transactions and Related Matters............   47
7.3.   Procedure for Indemnification for Tax Liabilities.....................   50

                                  ARTICLE VIII

                   Exchange of Information; Confidentiality

8.1.   Agreement for Exchange of Information.................................   53
8.2.   Ownership of Information..............................................   54
8.3.   Compensation for Providing Information................................   54
8.4.   Record Retention......................................................   54
8.5.   Limitation of Liability...............................................   54
8.6.   Other Agreements Providing for Exchange of Information................   54
8.7.   Production of Witnesses; Records; Cooperation.........................   55
8.8.   Confidentiality.......................................................   56
8.9.   Protective Arrangements...............................................   57
</TABLE>

                                      -ii-
<PAGE>   4
<TABLE>
<S>                                                                            <C>
                                   ARTICLE IX

                 Further Assurances and Additional Covenants

9.1.   Further Assurances....................................................   57
9.2.   Parent Restructuring..................................................   58
9.3.   Patent License Agreements.............................................   59

                                    ARTICLE X

                                   Termination

10.1.  Termination...........................................................   60
10.2.  Effect of Termination.................................................   60

                                   ARTICLE XI

                       Dispute Resolution and Arbitration

11.1.  Agreement to Arbitrate................................................   60
11.2.  Best Efforts to Resolve Disputes; Mediation...........................   61
11.3.  Demand for Arbitration................................................   61
11.4.  Arbitration Panel.....................................................   62
11.5.  Commencement and Place of Arbitration.................................   62
11.6.  Arbitration Hearings..................................................   62
11.7.  Arbitration Decision..................................................   63
11.8.  Discovery and Related Matters.........................................   63
11.9.  Arbitration Panel's Authority.........................................   63
11.10. Confidentiality ......................................................   64
11.11. Certain Additional Matters ...........................................   64
11.12. Limited Court Actions ................................................   65
11.13. Continuity of Performance and Remaining Obligations ..................   65
11.14. Law Governing Arbitration Procedures..................................   66
11.15. Non-applicability of Article .........................................   66

                                   ARTICLE XII

                                  Miscellaneous

12.1.  Counterparts; Entire Agreement; Corporate Power.......................   66
12.2.  Governing Law.........................................................   67
12.3.  Assignability.........................................................   67
12.4.  Third Party Beneficiaries.............................................   68
12.5.  Notices...............................................................   68
12.6.  Severability..........................................................   68
12.7.  Force Majeure.........................................................   69
12.8.  Expenses..............................................................   69
</TABLE>

                                     -iii-
<PAGE>   5
<TABLE>
<S>                                                                            <C>
12.9.  Late Payments.........................................................   69
12.10. Headings .............................................................   69
12.11. Survival of Covenants ................................................   69
12.12. Waivers of Default ...................................................   70
12.13. Specific Performance .................................................   70
12.14. Amendments ...........................................................   70
12.15. Interpretation .......................................................   70
12.16. Effectiveness ........................................................   71
</TABLE>

                                      -iv-
<PAGE>   6
         SEPARATION AND DISTRIBUTION AGREEMENT, dated as of June 4, 2001 (this
"Agreement"), by and between AT&T Corp., a New York corporation ("Parent"), and
AT&T Wireless Services, Inc., a Delaware corporation and wholly owned subsidiary
of Parent ("Wireless").

         WHEREAS, the respective Boards of Directors of Parent and Wireless have
approved and declared advisable the separation of the Wireless Group as defined
in Parent's amended and restated certificate of incorporation (the "Parent
Charter") from Parent (the "Separation"), pursuant to the terms and subject to
the conditions set forth in this Agreement;

         WHEREAS, prior to the Separation, the Board of Directors of Parent has
elected to distribute additional shares (the "Additional Distribution") of
Parent's Wireless Group Common Stock, par value $1.00 per share (the "Parent
Wireless Group Common Stock"), by exchange offer, with the effect of
proportionately decreasing the Parent Group's intergroup interest in the
Wireless Group;

         WHEREAS, to effect the Separation, (1) all the assets and liabilities
of the Wireless Group not currently held by Wireless and its subsidiaries will
be assigned to and assumed by Wireless, (2) the Wireless Group will satisfy
certain inter-group obligations with the Parent Group, (3) all the then issued
and outstanding shares of Parent Wireless Group Common Stock will be redeemed in
exchange for shares of Wireless Common Stock in accordance with the Parent
Charter (the "Mandatory Exchange"), and (4) substantially all of Parent's
remaining interest in Wireless will be distributed pro rata (the "Distribution")
to holders of shares of Parent's Common Stock, par value $1.00 per share, of
Parent (the "Parent Common Stock");

         WHEREAS, the Boards of Directors of Parent and Wireless have determined
that the Separation, the Mandatory Exchange and the Distribution are in
furtherance of and consistent with their respective business strategies and are
in the best interests of their stockholders and have approved this Agreement;

         WHEREAS, for federal income tax purposes, it is intended that the
Separation Transactions constitute a tax-free reorganization under the Code (as
defined below); and

         WHEREAS, it is appropriate and desirable to set forth the principal
corporate transactions required to effect the Separation Transactions and
certain other agreements that will govern certain matters relating to the
Separation, the Mandatory Exchange and the Distribution and the relationship of
Parent, Wireless and their respective Subsidiaries following the Separation, the
Mandatory Exchange and the Distribution.

         NOW, THEREFORE, the parties, intending to be legally bound, agree as
follows:

                                   ARTICLE I.

                                  DEFINITIONS

         For the purpose of this Agreement the following terms shall have the
following meanings:
<PAGE>   7
         1.1. Action means any demand, action, suit, countersuit, arbitration,
inquiry, proceeding or investigation by or before any federal, state, local,
foreign or international Governmental Authority or any arbitration or mediation
tribunal.

         1.2. Additional Distribution has the meaning set forth in the recitals
hereto.

         1.3. Additional Wireless Group Assets means:

         (a) all Wireless Group Assets not currently held, directly or
indirectly, by Wireless or its Subsidiaries, including those Assets listed on
Schedule 1.3(a);

         (b) any and all Assets that are expressly contemplated by this
Agreement or any Ancillary Agreement (or any Schedule hereto or thereto) as
Assets to be transferred to Wireless or any other member of the Wireless Group;

         (c) any Assets reflected in the Wireless Group Balance Sheet but not
currently held by Wireless or its Subsidiaries, subject to any dispositions of
such Assets subsequent to the date of the Wireless Group Balance Sheet;

         (d) any Wireless Group Contracts;

         (e) any Assets listed on Schedule 1.3(e) hereto, provided that the
Wireless Group shall have paid to the Parent Group the consideration specified
on such Schedule;

         (f) any CIC codes and other Assets listed on Schedule 1.3(f) hereto;
and

         (g) CPAC.

Notwithstanding the foregoing, the Additional Wireless Group Assets and the
Wireless Group Assets shall not in any event include the Excluded Assets.

         1.4. Additional Wireless Group Liabilities means, in each case whether
arising before, on or after the Redemption Date:

         (a) all Wireless Group Liabilities to which Wireless or its
Subsidiaries are not currently directly or indirectly subject;

         (b) any and all Liabilities that are expressly contemplated by this
Agreement or any Ancillary Agreement (or the Schedules hereto or thereto) as
Liabilities to be assumed by

                                      -2-
<PAGE>   8
Wireless or any member of the Wireless Group, and all agreements, obligations
and Liabilities of any member of the Wireless Group under this Agreement or any
of the Ancillary Agreements;

         (c) all Liabilities to the extent relating to, arising out of or
resulting from the operation of the Wireless Group, as conducted at any time
prior to, on or after the Redemption Date or the operation of any business
conducted by any member of the Wireless Group at any time after the Redemption
Date, including any Liabilities resulting from the offering of any wireless
services;

         (d) all Liabilities to the extent relating to, arising out of or
resulting from any Wireless Group Contract, Wireless Group Asset or any
Additional Wireless Group Asset, including any Delayed Transfer Asset;

         (e) all Liabilities to the extent relating to, arising out of or
resulting from any of the terminated, divested or discontinued businesses and
operations that were part of the Wireless Group immediately prior to such
termination, divestiture or discontinuation, or otherwise, including those
listed or described on Schedule 1.4(e);

         (f) all Liabilities reflected as liabilities or obligations of the
Wireless Group in the Wireless Group Balance Sheet but that are not currently
direct or indirect liabilities of Wireless or its Subsidiaries, subject to any
discharge of such Liabilities subsequent to the date of the Wireless Group
Balance Sheet;

         (g) (1) all Liabilities relating to, arising out of or resulting from
the Actions listed on Schedule 1.4(g) hereto (it being agreed that after the
Redemption Date the parties will supplement such Schedule to list any Actions
that would otherwise constitute Wireless Group Liabilities or Additional
Wireless Group Liabilities), whether arising before, on or after the Redemption
Date, as currently asserted in such Actions and any future Liabilities in such
Actions to the extent they would otherwise constitute Wireless Group Liabilities
or Additional Wireless Group Liabilities, and (2) all Liabilities relating to,
arising out of or resulting from all open or closed insured liability claims,
including auto and general liability claims, incurred by or relating to the
Wireless Group or its current, past or future employees;

         (h) all Combined Service Claims and other Liabilities to the extent
relating to the provision of (or failure to provide) any wireless services or
any other telecommunications services offered by any member of the Wireless
Group;

                                      -3-
<PAGE>   9
         (i) subject to Section 2.11(c), all Liabilities relating to, arising
out of or resulting from the Malaysian Action, whether arising before, on or
after the Redemption Date;

         (j) except as expressly set forth herein or in any Ancillary Agreement,
one-half of all Liabilities relating to, arising out of, or resulting from the
consummation of the Separation Transactions (it being agreed that all
Liabilities relating to, arising out of or resulting from any untrue statement
or alleged untrue statement of a material fact or omission or alleged omission
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading contained in any Registration Statement or
other document or in any registration statement or other document relating to
any exchange offer commenced in connection with any Additional Distribution
shall be allocated in accordance with Section 6.2(d) and Section 6.3(d) and not
pursuant to this clause);

         (k)(i) any supply or vendor contract or agreement, or (ii) any other
contracts or agreements, in each case listed or described on Schedule 1.4(k), in
each case except to the extent exclusions are set forth on such Schedule and
otherwise subject to the terms and conditions of such Schedule;

         (l) any contract or agreement entered into by Parent or any other
member of the Parent Group that prior to the Separation bound any member of the
Wireless Group in its capacity as a Subsidiary, Affiliate or division of Parent
or of such other member, to the extent any member of the Wireless Group is
required by the terms of such contract or agreement to comply with, or is
otherwise bound by, any such contract or agreement after the Redemption Date;
and

         (m) 70% of any Liabilities relating to, arising out of or resulting
from any of the Actions listed on Schedule 1.4(m) or any Actions involving
similar allegations (collectively, the "Specified Matters") to the extent
payable to or on behalf of any past, current or future holders of shares of
Parent Wireless Group Common Stock (including any such shares sold in the
initial public offering thereof or to any purchasers thereof) or to the extent
relating to any transactions therein.

         Notwithstanding the foregoing, the Additional Wireless Group
Liabilities shall not include the Excluded Liabilities.

         1.5. Affiliate of any Person means a Person that controls, is
controlled by, or is under common control with such Person. As used herein,
"control" means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and

                                      -4-
<PAGE>   10
policies of such entity, whether through ownership of voting securities or other
interests, by contract or otherwise; provided however that for purposes of this
Agreement, no member of either Group shall be deemed to be an Affiliate of any
member of the other Group and no employee plan or employee plan trust shall be
deemed an Affiliate of any employer or of any Affiliate of any employer.

         1.6. Agent means the distribution agent to be appointed by Parent to
distribute the shares of Wireless Common Stock to holders of shares of Parent
Wireless Group Common Stock in the Mandatory Exchange and to holders of Parent
Common Stock in the Distribution.

         1.7. Agreement means this Separation and Distribution Agreement,
including all of the Schedules and Exhibits hereto.

         1.8. Ancillary Agreements means those agreements and other documents
listed on Schedule 1.8.

         1.9. ARIC means American Ridge Insurance Company, a Vermont
corporation.

         1.10. ARIC Wireless Policies means any insurance policies written by
ARIC or any other captive insurance company of Parent to the extent covering the
Wireless Group Business or any member of the Wireless Group, as set forth on
Schedule 1.10.

         1.11. Assets means assets, properties and rights (including goodwill),
wherever located (including in the possession of vendors or other third parties
or elsewhere), whether real, personal or mixed, tangible, intangible or
contingent, in each case whether or not recorded or reflected or required to be
recorded or reflected on the books and records or financial statements of any
Person, including the following:

                  (a) all accounting and other books, records and files whether
         in paper, microfilm, microfiche, computer tape or disc, magnetic tape
         or any other form;

                  (b) all apparatus, computers and other electronic data
         processing equipment, fixtures, machinery, equipment, furniture, office
         equipment, automobiles, trucks, aircraft, rolling stock, vessels, motor
         vehicles and other transportation equipment, special and general tools,
         test devices, prototypes and models and other tangible personal
         property;

                                      -5-
<PAGE>   11
                  (c) all inventories of materials, parts, raw materials,
         supplies, work-in-process and finished goods and products;

                  (d) all interests in real property of whatever nature,
         including easements, whether as owner, mortgagee or holder of a
         Security Interest in real property, lessor, sublessor, lessee,
         sublessee or otherwise, and copies of all related documentation;

                  (e) all interests in any capital stock or other equity
         interests of any Subsidiary or any other Person, all bonds, notes,
         debentures or other securities issued by any Subsidiary or any other
         Person, all loans, advances or other extensions of credit or capital
         contributions to any Subsidiary or any other Person and all other
         investments in securities of any Person;

                  (f) all license agreements, leases of personal property, open
         purchase orders for raw materials, supplies, parts or services,
         unfilled orders for the manufacture and sale of products and other
         contracts, agreements or commitments;

                  (g) all deposits, letters of credit and performance and surety
         bonds;

                  (h) all written technical information, data, specifications,
         research and development information, engineering drawings, operating
         and maintenance manuals, and materials and analyses prepared by
         consultants and other third parties;

                  (i) all domestic and foreign patents, copyrights, trade names,
         trademarks, service marks and registrations and applications for any of
         the foregoing, mask works, trade secrets, inventions, other proprietary
         information and licenses from third Persons granting the right to use
         any of the foregoing;

                  (j) all computer applications, programs and other software,
         including operating software, network software, firmware, middleware,
         design software, design tools, systems documentation and instructions;

                  (k) all cost information, sales and pricing data, customer
         prospect lists, supplier records, customer and supplier lists, records
         pertaining to customers and customer accounts, customer and vendor
         data, correspondence and lists, product literature, advertising
         material, artwork, design, development and manufacturing files, vendor
         and customer drawings, formulations and specifications, quality records
         and reports and other books, records, studies, surveys, reports, plans
         and documents;

                                      -6-
<PAGE>   12
                  (l) all prepaid expenses, trade accounts and other accounts
         and notes receivables;

                  (m) all rights under contracts or agreements, all claims or
         rights against any Person arising from the ownership of any Asset, all
         rights in connection with any bids or offers and all claims, choses in
         action or similar rights, whether accrued or contingent;

                  (n) all rights under insurance policies and all rights in the
         nature of insurance, indemnification or contribution;

                  (o) all licenses (including radio and similar licenses),
         permits, approvals and authorizations which have been issued by any
         Governmental Authority;

                  (p) cash or cash equivalents, bank accounts, lock boxes and
         other deposit arrangements;

                  (q) copies of all documentation related to any ARIC Wireless
         Policies or any other Insurance Policies to the extent applicable to
         the Wireless Group; and

                  (r) interest rate, currency, commodity or other swap, collar,
         cap or other hedging or similar agreements or arrangements.

         1.12. Change of Control with respect to either Parent or Wireless, as
applicable, shall mean the occurrence of any of the following, in each case to
the extent involving (whether as a result of an acquisition of shares,
participation in a proxy fight or consent solicitation, participation in a
Business Combination or otherwise) directly or indirectly (including as a member
of a group) a Covered Person with respect to Parent or Wireless, respectively:

         (a) The acquisition by any Person or group of Persons of beneficial
ownership (for all purposes hereof, within the meaning of Rule 13d-3
promulgated under the Securities Exchange Act of 1934, as amended) of 40% or
more of either (i) the then outstanding shares of common stock of the Person
(the "Outstanding Company Common Stock") or (ii) the combined voting power of
the then outstanding voting securities of the Person entitled to vote generally
in the election of directors of such Person (the "Outstanding Company Voting
Securities"); provided, however, that for purposes of this paragraph (a), any
acquisition by any Person pursuant to a Business Combination (as defined below)
that complies with clauses (i), (ii) and (iii) of paragraph (c) of this
definition shall not be a Change of Control; or

                                      -7-
<PAGE>   13
         (b) Individuals who, as of the date of this Agreement, constitute the
board of directors or other similar governing body of such Person (the
"Incumbent Board") cease for any reason to constitute at least a majority of the
board or other similar governing body of such Person; provided, however, that
any individual becoming a director, or having similar management supervisory
functions (a "director") subsequent to the date of this Agreement whose
election, or nomination for election by such Person's shareholders, was approved
by a vote of at least a majority of the directors then comprising the Incumbent
Board shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Incumbent Board of such Person; or

         (c) Consummation of a reorganization, merger or consolidation, sale or
other disposition of all or substantially all of the assets or shares of such
Person or any similar transaction involving such Person (a "Business
Combination"), in each case, unless, following such Business Combination, (i)
all or substantially all of the Persons who were the beneficial owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company
Voting Securities of the applicable Person immediately prior to such Business
Combination beneficially own, directly or indirectly, 60% or more of,
respectively, the then Outstanding Company Common Stock and the then Outstanding
Company Voting Securities, as the case may be, of the Person or Persons
resulting from such Business Combination (including a Person or Persons which as
a result of such transaction own the applicable Person or all or substantially
all of the applicable Person's assets either directly or through one or more
Subsidiaries) (such resulting Person or Persons, as applicable, a "Resulting
Corporation") in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Company Common
Stock and Outstanding Company Voting Securities of the applicable Person, as the
case may be, (ii) no Person or group of Persons (excluding any Resulting
Corporation) beneficially owns, directly or indirectly, 40% or more of,
respectively, the then Outstanding Company Common Stock of the Resulting
Corporation or the then Outstanding Company Voting Securities of the Resulting
Corporation, and (iii) at least a majority of the members of the board of
directors or other similar governing body of the Resulting Corporation were
members or were considered members of the Incumbent Board prior to the time of
the execution of the initial agreement, or of the initial action of the board or
other similar governing body, providing for such Business Combination; or

                                      -8-
<PAGE>   14
         (d) Approval by the shareholders of such Person of a complete
liquidation or dissolution of such Person;

provided however that the transactions announced by Parent prior to the date of
this Agreement shall not result in a Change of Control.

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

         1.14. Combined Service Claims means any pending or threatened Action
(whether pending or threatened prior to, as of or after the Redemption Date) by
any Person or Governmental Authority that relates or purports to relate to
telecommunications services provided (or failed to be provided) by any member of
the Wireless Group and any member of the Parent Group.

         1.15. Commission means the Securities and Exchange Commission.

         1.16. Consents means any consents, waivers or approvals from, or
notification requirements to, any third parties.

         1.17. Control means the direct or indirect power affirmatively to
direct the management and policies of a Person, whether through the ownership of
voting securities, by agreement or otherwise.

         1.18. Covered Person means (a) in the case of Parent, any Person that
collectively with its Affiliates and Subsidiaries, during the 12-month period
preceding the date of consummation of the applicable event that might constitute
a Change of Control, had United States Commercial Mobile Radio Services and
fixed wireless revenue of at least $1 billion in the aggregate, and (b) in the
case of the Wireless, any Person that collectively with its Affiliates and
Subsidiaries, during the 12-month period preceding the date of consummation of
the applicable event that might constitute a Change of Control, had United
States wireline telecommunications revenue (including voice, data and IP) of at
least $3 billion in the aggregate.

         1.19. Covered Subsidiary means any of the Persons that are contemplated
by the current restructuring plan to be distributed by Parent to its
shareholders and that may be entitled to use the AT&T brand.

         1.20. CPAC means Cellular Phone Assurance Company, Ltd., an insurance
company domiciled in Bermuda.

                                      -9-
<PAGE>   15
         1.21. Delayed Transfer Assets means any Additional Wireless Group
Assets that this Agreement or any Ancillary Agreement provides or contemplates
may be transferred after the Redemption Date, including as a result of the
advisability of seeking any regulatory approval or third party consent.

         1.22. Distribution has the meaning set forth in the recitals of this
Agreement.

         1.23. Distribution Date means the date determined pursuant to Section
5.1 on which the Distribution occurs.

         1.24. Effective Time means the time designated by the Board of
Directors of Parent as the effective time of the Distribution on the
Distribution Date.

         1.25. Environmental Law means any federal, state, local, foreign or
international statute, ordinance, rule, regulation, code, license, permit,
authorization, approval, consent, common law (including tort and environmental
nuisance law), legal doctrine, order, judgment, decree, injunction, requirement
or agreement with any Governmental Authority, now or hereafter in effect
relating to health, safety, pollution or the environment (including ambient air,
surface water, groundwater, land surface or subsurface strata) or to emissions,
discharges, releases or threatened releases of any substance currently or at any
time hereafter listed, defined, designated or classified as hazardous, toxic,
waste, radioactive or dangerous, or otherwise regulated, under any of the
foregoing, or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of any such substances,
including the Comprehensive Environmental Response, Compensation and Liability
Act, the Superfund Amendments and Reauthorization Act and the Resource
Conservation and Recovery Act and comparable provisions in state, local, foreign
or international law.

         1.26. Environmental Liabilities means all Liabilities relating to,
arising out of or resulting from any Environmental Law or contract or agreement
relating to environmental, health or safety matters (including all removal,
remediation or cleanup costs, investigatory costs, governmental response costs,
natural resources damages, property damages, personal injury damages, costs of
compliance with any settlement, judgment or other determination of Liability and
indemnity, contribution or similar obligations) and all costs and expenses,
interest, fines, penalties or other monetary sanctions in connection therewith.

         1.27. Exchange Act means the Securities Exchange Act of 1934, as
amended, together with the rules and regulations promulgated thereunder.

                                      -10-
<PAGE>   16
         1.28. Excluded Assets means (i) the Assets listed or described on
Schedule 1.28, provided that the Parent Group shall have paid to the Wireless
Group the consideration specified on such Schedule or contemplated by the
applicable Ancillary Agreement; (ii) Parent Group IPR, (iii) any CIC codes or
other Assets of the type listed on Schedule 1.3(f) that are not listed on
Schedule 1.3(f) hereto, (iv) any and all Assets that are expressly contemplated
by this Agreement or any Ancillary Agreement (or the Schedules hereto or
thereto) as Assets to be retained by Parent or any other member of the Parent
Group, (v) any Parent Assets, and (vi) any Assets that would be Wireless Group
Assets or Additional Wireless Group Assets that the parties mutually agree in
writing (as evidenced by a separate agreement) prior to the Redemption Date
should remain with the Parent Group in exchange for payment by the Parent Group
of the fair market value thereof.

         1.29. Excluded Liabilities means any and all Liabilities that are
expressly contemplated by this Agreement or any Ancillary Agreement (or the
Schedules hereto or thereto) as Liabilities to be retained or assumed by Parent
or any other member of the Parent Group, and all agreements and obligations of
any member of the Parent Group under this Agreement or any of the Ancillary
Agreements. For purposes of clarification, the following shall be Excluded
Liabilities: (a) 30% of any Liabilities relating to, arising out of or resulting
from any of the Specified Matters to the extent payable to or on behalf of any
past, current or future holders of shares of Parent Wireless Group Common Stock
(including any such shares sold in the initial public offering thereof or to any
purchasers thereof) or to the extent relating to any transactions therein, and
(b) all Liabilities relating to, arising out of or resulting from any of the
Specified Matters to the extent payable to or on behalf of any past, current or
future holders of shares of Parent Common Stock or to the extent relating to any
transactions therein.

         1.30. Governmental Approvals means any notices, reports or other
filings to be made, or any consents, registrations, approvals, permits or
authorizations to be obtained from, any Governmental Authority.

         1.31. Governmental Authority shall mean any federal, state, local,
foreign or international court, government, department, commission, board,
bureau, agency, official or other regulatory, administrative or governmental
authority.

         1.32. Group means either of the Parent Group or the Wireless Group as
the context requires.

         1.33. Indemnifying Party has the meaning set forth in Section 6.4(a).

                                      -11-
<PAGE>   17
         1.34. Indemnitee has the meaning set forth in Section 6.4(a).

         1.35. Indemnity Payment has the meaning set forth in Section 6.4(a).

         1.36. Information means information, whether or not patentable or
copyrightable, in written, oral, electronic or other tangible or intangible
forms, stored in any medium, including studies, reports, records, books,
contracts, instruments, surveys, discoveries, ideas, concepts, know-how,
techniques, designs, specifications, drawings, blueprints, diagrams, models,
prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes,
computer programs or other software, marketing plans, customer names,
communications by or to attorneys (including attorney-client privileged
communications), memos and other materials prepared by attorneys or under their
direction (including attorney work product), and other technical, financial,
employee or business information or data.

         1.37. Insurance Proceeds means those monies:

                  (a) received by an insured from an insurance carrier;

                  (b) paid by an insurance carrier on behalf of the insured; or

                  (c) received (including by way of set off) from ARIC or any of
         its Subsidiaries or from any third party in the nature of insurance,
         contribution or indemnification in respect of any Liability;

in any such case net of any applicable premium adjustments (including reserves
and retrospectively rated premium adjustments) and net of any costs or expenses
incurred in the collection thereof.

         1.38. Liabilities means any and all losses, claims, charges, debts,
demands, Actions, damages, obligations, payments, costs and expenses, sums of
money, bonds, indemnities and similar obligations, covenants, contracts,
controversies, agreements, promises, omissions, guarantees, make whole
agreements and similar obligations, and other liabilities, including all
contractual obligations, whether absolute or contingent, inchoate or otherwise,
matured or unmatured, liquidated or unliquidated, accrued or unaccrued, known or
unknown, whenever arising, and including those arising under any law, rule,
regulation, Action, threatened or contemplated Action (including the costs and
expenses of demands, assessments, judgments, settlements and compromises
relating thereto and attorneys' fees and any and all costs and expenses,
whatsoever reasonably incurred in investigating, preparing or defending against
any

                                      -12-
<PAGE>   18
such Actions or threatened or contemplated Actions), order or consent decree of
any Governmental Authority or any award of any arbitrator or mediator of any
kind, and those arising under any contract, commitment or undertaking, including
those arising under this Agreement or any Ancillary Agreement, in each case,
whether or not recorded or reflected or required to be recorded or reflected on
the books and records or financial statements of any Person.

         1.39. Liberty Media Group has the meaning set forth in the Parent
Charter.

         1.40. Malaysian Action means all Liabilities arising out of or
resulting from the Action captioned In re International Arbitration between
Usaha Tegas Sdn Bhd et al. And MediaOne Far East Telecommunications, Inc.
pending with respect to the Malaysian Wireless Assets or any other Actions to
the extent involving similar allegations.

         1.41. Malaysian Asset Proceeds has the meaning set forth in Section
2.11(c).

         1.42. Malaysian Wireless Assets means MediaOne Far sEast
Telecommunications, Inc.

         1.43. Mandatory Exchange has the meaning specified in the recitals to
this Agreement.

         1.44. Nasdaq NMS means The National Market System of the National
Association of Securities Dealers Automated Quotations System.

         1.45. Non-Wireless Group Assets means any Assets of Parent or any of
its Affiliates other than Wireless Group Assets and Additional Wireless Group
Assets.

         1.46. NYSE means The New York Stock Exchange, Inc.

         1.47. Parent has the meaning set forth in the preamble to this
Agreement.

         1.48. Parent Assets means any Assets held by any member of the Wireless
Group that are not Wireless Group Assets or Additional Wireless Group Assets,
including those Assets listed on Schedule 1.48.

         1.49. Parent Charter has the meaning set forth in the recitals to this
Agreement.

                                      -13-
<PAGE>   19
         1.50. Parent Common Stock has the meaning set forth in the recitals to
this Agreement.

         1.51. Parent Group means Parent and each Person (other than any member
of the Wireless Group or any member of the Liberty Media Group) that is an
Affiliate of Parent immediately after the Distribution Date.

         1.52. Parent Group IPR means any and all intellectual property rights
protectable by law anywhere throughout the world, which, immediately prior to
the Redemption Date, are owned or controlled by any member of the Parent Group.
Without limiting the foregoing, Parent Group IPR includes any and all of the
following owned or controlled by any member of the Parent Group immediately
prior to the Redemption Date: all domestic and foreign patents, copyrights,
trade names, trademarks, service marks and registrations and applications for
any of the foregoing, mask works, trade secrets, inventions, other proprietary
information and licenses from third Persons granting the right to use any of the
foregoing; all computer applications, programs and other software, including
operating software, network software, firmware, middleware, design software,
design tools, systems documentation and instructions; all intellectual property
license agreements; all written technical information, data, specifications,
research and development information, engineering drawings, operating and
maintenance manuals, and materials and analyses prepared by consultants and
other third parties; and all cost information, sales and pricing data, customer
prospect lists, supplier records, customer and supplier lists, records
pertaining to customers and customer accounts, customer and vendor data,
correspondence and lists, product literature, advertising materials, artwork,
design, development and manufacturing files, vendor and customer drawings,
formulations and specifications, quality records and reports and other books,
records, studies, surveys, reports, plans and documents.

         1.53. Parent Indemnitees has the meaning set forth in Section 6.2.

         1.54. Parent Wireless Group Common Stock has the meaning set forth in
the recitals to this Agreement.

         1.55. Person means an individual, a general or limited partnership, a
corporation, a trust, a joint venture, an unincorporated organization, a limited
liability entity, any other entity and any Governmental Authority.

         1.56. Prime Rate means the rate which The Chase Manhattan Bank (or any
successor thereto or other major money center commercial bank agreed to by the
parties hereto) announces from time to time as its prime lending rate, as in
effect from time to time.

                                      -14-
<PAGE>   20
         1.57. Proposed Acquisition Transaction has the meaning set forth in
Section 7.2.

         1.58. Real Property Instruments has the meaning set forth in Section
2.3.

         1.59. Redemption Date the date determined pursuant to Section 5.1 on
which the Mandatory Exchange occurs.

         1.60. Record Date means the close of business on the date to be
determined by the Parent Board of Directors as the record date for determining
shareholders of Parent entitled to receive shares of Wireless Common Stock in
the Mandatory Exchange and the Distribution.

         1.61. Registration Statements means any (a) Registration Statement on
Form S-4 filed or to be filed by Parent with the Commission in connection with
any Additional Distribution effected by means of an exchange offer and (b) any
Registration Statement on Form S-1 filed or to be filed by Wireless and/or
Parent with the Commission with respect to Wireless Common Stock, in each case
including any amendment thereto or supplement thereof.

         1.62. Representation Letter has the meaning set forth in Section 7.2.

         1.63. Securities Act means the Securities Act of 1933, as amended,
together with the rules and regulations promulgated thereunder.

         1.64. Security Interest means any mortgage, security interest, pledge,
lien, charge, claim, option, right to acquire, voting or other restriction,
right-of-way, covenant, condition, easement, encroachment, restriction on
transfer, or other encumbrance of any nature whatsoever.

         1.65. Separation has the meaning set forth in the recitals to this
Agreement.

         1.66. Separation Transactions means (1) the transfer of certain
Wireless Group Assets and certain Wireless Group Liabilities to Wireless or its
Subsidiaries, (2) the Mandatory Exchange and (3) the Distribution, in each case
pursuant to the plan of reorganization.

         1.67. Specified Matters has the meaning set forth in the definition of
Additional Wireless Group Liabilities.

         1.68. Spin-Off Disqualification has the meaning set forth in Section
7.2.

         1.69. Subsequent Tax Opinion/Ruling has the meaning set forth in
Section 7.2.

                                      -15-
<PAGE>   21
         1.70. Subsidiary of any Person means any corporation or other
organization whether incorporated or unincorporated of which at least a majority
of the securities or interests having by the terms thereof ordinary voting power
to elect at least a majority of the board of directors or others performing
similar functions with respect to such corporation or other organization is
directly or indirectly owned or controlled by such Person or by any one or more
of its Subsidiaries, or by such Person and one or more of its Subsidiaries;
provided, however that no Person that is not directly or indirectly wholly owned
by any other Person shall be a Subsidiary of such other Person unless such other
Person controls, or has the right, power or ability to control, that Person.

         1.71. Tax Opinions/Rulings has the meaning set forth in Section 7.2.

         1.72. Tax Related Losses has the meaning set forth in Section 7.2.

         1.73. Tax Sharing Agreement means the Tax Sharing Agreement to be
entered into between Parent and Wireless prior to the Distribution Date.

         1.74. Taxes has the meaning set forth in the Tax Sharing Agreement.

         1.75. Third Party Claim has the meaning set forth in Section 6.5(a).

         1.76. Third Party Tax Claim has the meaning set forth in Section 7.3.

         1.77. Wireless has the meaning set forth in the preamble to this
Agreement.

         1.78. Wireless Common Stock means all issued and outstanding shares of
Common Stock, par value $0.01, of Wireless, all of which is currently held,
directly or indirectly, by Parent.

         1.79. Wireless Group has the meaning set forth in the Parent Charter.

         1.80. Wireless Group Allocation Fraction has the meaning set forth in
the Parent Charter.

         1.81. Wireless Group Assets means all Assets that are attributed to the
Wireless Group as of the Redemption Date pursuant to the Parent Charter.

         1.82. Wireless Group Balance Sheet means the audited combined balance
sheet of the Wireless Group, including the notes thereto, as of December 31,
2000.

                                      -16-
<PAGE>   22
         1.83. Wireless Group Contracts means the following contracts and
agreements to which Parent or any of its Affiliates is a party or by which it or
any of its Affiliates or any of their respective Assets is bound, whether or not
in writing, except for any such contract or agreement that is contemplated to be
retained by Parent or any member of the Parent Group pursuant to any provision
of this Agreement or any Ancillary Agreement:

                  (a) any contract or agreement entered into in the name of, or
         expressly on behalf of, any division, business unit or member of the
         Wireless Group, including customer contracts and any open purchase
         orders or similar commitments;

                  (b) any contract or agreement that is otherwise expressly
         contemplated pursuant to this Agreement or any of the Ancillary
         Agreements to be assigned to Wireless or any member of the Wireless
         Group;

                  (c) any guarantee, indemnity, representation, warranty or
         other Liability of any member of the Wireless Group or the Parent Group
         in respect of any other Wireless Group Contract, any Additional
         Wireless Group Liability, any Wireless Group Liability or the Wireless
         Group (including guarantees of financing incurred by customers or other
         third parties in connection with purchases of products or services from
         the Wireless Group);

                  (d) the contracts, agreements and other documents listed or
         described on Schedule 1.83(d); and

                  (e) any customer contracts in the name of a member of the
         Parent Group that include both Parent Group services and Wireless Group
         services, but only to the extent related to the provision of wireless
         services by the Wireless Group and only to the extent the Wireless
         Group has previously received revenue thereunder relating to the
         provision of wireless services (it being agreed that (1)
         notwithstanding anything to the contrary herein such contracts will not
         be assigned to the Wireless Group, (2) the Wireless Group shall be
         required to satisfy the obligations to provide wireless services
         thereunder, (3) if a customer under any such contract defaults with
         respect to its obligations relating to the wireless services provided
         under any such contract, Wireless shall be entitled to exercise any
         remedies provided for in any such contract in the event of any such
         breach relating to wireless services, (4) prior to Wireless's
         exercising any remedy under clause (3) hereof, Wireless shall confer in
         good faith with Parent concerning the best means to avoid damaging the
         overall relationship with the customer, and (5) after the Redemption
         Date,

                                      -17-
<PAGE>   23
         Wireless and Parent shall continue to allocate revenue thereunder in
         accordance with past practices).

         1.84. Wireless Group Indemnitees has the meaning set forth in Section
6.3(a).

         1.85. Wireless Group IPR means any and all intellectual property rights
protectable by law anywhere throughout the world, which, immediately prior to
the Redemption Date, are owned or controlled by any member of the Wireless
Group. Without limiting the foregoing, Wireless Group IPR includes any and all
of the following owned or controlled by any member of the Wireless Group
immediately prior to the Redemption Date: all domestic and foreign patents,
copyrights, trade names, trademarks, service marks and registrations and
applications for any of the foregoing, mask works, trade secrets, inventions,
other proprietary information and licenses from third Persons granting the right
to use any of the foregoing; all computer applications, programs and other
software, including operating software, network software, firmware, middleware,
design software, design tools, systems documentation and instructions; all
intellectual property license agreements; all written technical information,
data, specifications, research and development information, engineering
drawings, operating and maintenance manuals, and materials and analyses prepared
by consultants and other third parties; and all cost information, sales and
pricing data, customer prospect lists, supplier records, customer and supplier
lists, records pertaining to customers and customer accounts, customer and
vendor data, correspondence and lists, product literature, advertising
materials, artwork, design, development and manufacturing files, vendor and
customer drawings, formulations and specifications, quality records and reports
and other books, records, studies, surveys, reports, plans and documents.

         1.86. Wireless Group Liabilities means all Liabilities that are
attributed to the Wireless Group as of the Redemption Date pursuant to the
Parent Charter.

         1.87. Wireless Group Members means Wireless and each other Person that
is controlled directly or indirectly by Wireless immediately after the
Redemption Date.

                                   ARTICLE II

                                 THE SEPARATION

         2.1. Transfer of Assets and Assumption of Liabilities. (a) Parent
agrees on or prior to the Redemption Date to assign, transfer, convey and
deliver to Wireless, and to cause its applicable Subsidiaries to assign,
transfer, convey and deliver to Wireless, and Wireless agrees to

                                      -18-
<PAGE>   24
accept from Parent and its Subsidiaries, all of Parent's and its applicable
Subsidiaries' respective right, title and interest in all Additional Wireless
Group Assets, other than the Delayed Transfer Assets.

         (b) Wireless agrees from and after the Redemption Date faithfully to
perform and fulfill all the Additional Wireless Group Liabilities in accordance
with their respective terms and to assume obligations to defend Actions which
constitute Wireless Group Liabilities or Additional Wireless Group Liabilities.
From and after such date, Wireless shall be responsible for all Additional
Wireless Group Liabilities, regardless of when or where such Additional Wireless
Group Liabilities arose or arise, or whether the facts on which they are based
occurred prior to or subsequent to the date hereof, regardless of where or
against whom such Additional Wireless Group Liabilities are asserted or
determined (including any Additional Wireless Group Liabilities arising out of
claims made by Parent's or Wireless's respective directors, officers, employees,
agents, Subsidiaries or Affiliates against any member of the Parent Group or the
Wireless Group) or whether asserted or determined prior to the date hereof, and
regardless of whether arising from or alleged to arise from negligence,
recklessness, violation of law, fraud or misrepresentation by any member of the
Parent Group or the Wireless Group or any of their respective directors,
officers, employees, agents, Subsidiaries or Affiliates.

         (c) Parent agrees from and after the Redemption Date faithfully to
perform and fulfill all the Excluded Liabilities in accordance with their
respective terms and to assume obligations to defend Actions which constitute
Excluded Liabilities. From and after such date, Parent shall be responsible for
all Excluded Liabilities, regardless of when or where such Excluded Liabilities
arose or arise, or whether the facts on which they are based occurred prior to
or subsequent to the date hereof, regardless of where or against whom such
Excluded Liabilities are asserted or determined (including any Excluded
Liabilities arising out of claims made by Parent's or Wireless's respective
directors, officers, employees, agents, Subsidiaries or Affiliates against any
member of the Parent Group or the Wireless Group) or whether asserted or
determined prior to the date hereof, and regardless of whether arising from or
alleged to arise from negligence, recklessness, violation of law, fraud or
misrepresentation by any member of the Parent Group or the Wireless Group or any
of their respective directors, officers, employees, agents, Subsidiaries or
Affiliates.

         (d) Each of the parties hereto agrees that the Delayed Transfer Assets
will be assigned, transferred, conveyed and delivered in accordance with the
terms of this Agreement or the applicable Ancillary Agreement. Following such
assignment, transfer, conveyance and delivery of any Delayed Transfer Asset, the
applicable Delayed Transfer Asset shall be treated

                                      -19-
<PAGE>   25
for all purposes of this Agreement and the Ancillary Agreements as an Additional
Wireless Group Asset.

         (e) In the event that at any time or from time to time (whether prior
to or after the Redemption Date), any party hereto (or any member of such
party's respective Group) shall receive or otherwise possess any Asset that is
allocable to any other Person pursuant to this Agreement or any Ancillary
Agreement, such party shall promptly transfer, or cause to be transferred, such
Asset to the Person so entitled thereto. Prior to any such transfer, the Person
receiving or possessing such Asset shall hold such Asset in trust for any such
other Person. For purposes hereof, all Assets that are not Wireless Group Assets
or Additional Wireless Group Assets shall be deemed allocated to the Parent
Group. Without limiting the foregoing, but subject to Section 2.7(a), Wireless
agrees to take such action as may be necessary to transfer to Parent any Parent
Assets or any other Assets that are not Wireless Group Assets or Additional
Wireless Group Assets held by any member of the Wireless Group, whether prior
to, at or after the Redemption Date. Notwithstanding the foregoing, for purposes
of clarification, the parties agree that any Assets acquired by the Wireless
Group after the Distribution Date shall not be Parent Assets.

         2.2. Termination of Agreements. (a) Except as set forth in Section
2.2(b), Wireless and each member of the Wireless Group, on the one hand, and
each of Parent and the members of the Parent Group, on the other hand, hereby
terminate, any and all agreements, arrangements, commitments or understandings,
whether or not in writing, between or among Wireless and/or any member of the
Wireless Group, on the one hand, and Parent and/or any member of the Parent
Group, on the other hand, effective as of the Redemption Date. No such
terminated agreement, arrangement, commitment or understanding (including any
provision thereof which purports to survive termination) shall be of any further
force or effect after the Redemption Date. Each party shall, at the reasonable
request of any other party, take, or cause to be taken, such other actions as
may be necessary to effect the foregoing.

         (b) The provisions of Section 2.2(a) shall not apply to any of the
following agreements, arrangements, commitments or understandings (or to any of
the provisions thereof): (i) this Agreement and the Ancillary Agreements (and
each other agreement or instrument expressly contemplated by this Agreement or
any Ancillary Agreement to be entered into by any of the parties hereto or any
of the members of their respective Groups, including Section 2.3) or any
Wireless Group Liability or Additional Wireless Group Liability; (ii) any
agreements, arrangements, commitments or understandings listed or described on
Schedule 2.2(b)(ii); (iii) any agreements, arrangements, commitments or
understandings to which any Person other than

                                      -20-
<PAGE>   26
the parties hereto and their respective wholly owned Affiliates is a party (it
being understood that to the extent that the rights and obligations of the
parties and the members of their respective Groups under any such agreements,
arrangements, commitments or understandings constitute Additional Wireless Group
Assets or Additional Wireless Group Liabilities, they shall be assigned pursuant
to Section 2.1); (iv) any intercompany accounts payable or accounts receivable
accrued as of the Redemption Date that are reflected in the books and records of
the parties or otherwise documented in writing in accordance with past
practices; (v) any agreements, arrangements, commitments or understandings to
which any non-wholly owned Subsidiary or Affiliate of Parent or Wireless, as the
case may be, is a party (it being understood that directors' qualifying shares
or similar interests will be disregarded for purposes of determining whether a
Subsidiary is wholly owned); (vi) any written Tax sharing or Tax allocation
agreements to which any member of any Group is a party; (vii) any Liability that
ARIC may have under any ARIC Wireless Policy (unless a novation shall have been
effected in accordance with the provisions of this Agreement) and (viii) any
other agreements, arrangements, commitments or understandings that this
Agreement or any Ancillary Agreement expressly contemplates will survive the
Redemption Date.

         2.3. Documents Relating to Transfer of Real Property Interests and
Tangible Property Located Thereon. (a) In furtherance of the assignment,
transfer and conveyance of Additional Wireless Group Assets and the assumption
of Additional Wireless Group Liabilities set forth in Section 2.1(a), (b) and
(c), on or prior to the Redemption Date, each of Parent and Wireless or their
applicable Subsidiaries, will execute and deliver such deeds, lease assignments
and assumptions, leases, subleases and sub-subleases as may be necessary to
effect the transactions contemplated by this Agreement, including this Section
2.3 (collectively, the "Real Property Instruments"). For the locations set forth
on Schedules 2.3(b), 2.3(c) and 2.3(d), the Real Property Instruments will be
substantially in the forms attached as Schedule 2.3(a), with such changes as may
be necessary to conform to any regulations or usage applicable in the
jurisdiction in which the real property is located.

         (b) Schedule 2.3(b) sets forth a list of locations which are currently
owned or leased by a member of the Parent Group and occupied by employees of the
Wireless Group and of the Parent Group. Such Schedule also indicates for each
such location whether such location is owned or leased by a member of the Parent
Group, the approximate square footage, the method that will be used to calculate
rent and the term of the lease or sublease. On or prior to the Redemption Date,
the parties will enter into leases or subleases substantially in the forms set
forth in Schedule 2.3(a) to give effect to the foregoing.

                                      -21-
<PAGE>   27
         (c) Schedule 2.3(c) also sets forth a list of locations which are
currently occupied exclusively by employees of the Wireless Group but which are
owned or leased by a member of the Parent Group. On or prior to the Redemption
Date, (i) in the case of any such property leased or subleased by a member of
the Parent Group, the appropriate member of the Parent Group will assign the
applicable lease or sublease to Wireless and Wireless will assume such lease or
sublease, in each case effective as of the Redemption Date pursuant to an
assignment and assumption agreement substantially in the form set forth in
Schedule 2.3(a), and (ii) in the case of any such property owned by a member of
the Parent Group, the parties will enter into leases or subleases to give effect
to the applicable provisions of Schedule 2.3(c) substantially in the form set
forth in Schedule 2.3(a).

         (d) Schedule 2.3(d) sets forth a list of locations which are currently
owned or leased by a member of the Wireless Group and occupied by employees of
the Wireless Group and of the Parent Group. Such Schedule also indicates for
each such location whether such location is owned or leased by a member of the
Wireless Group and the approximate square footage, the method that will be used
to calculate rent and the term of the lease or sublease. On or prior to the
Redemption Date, the parties will enter into leases or subleases to give effect
to the foregoing substantially in the form set forth in Schedule 2.3(a).

         (e) In addition, each of the members of the Wireless Group and the
Parent Group locates cell site towers or other equipment on properties leased or
owned by the other Group. To the extent practicable without breaching any third
party arrangements, on or prior to the Redemption Date, the parties agree to
enter into mutually acceptable market-based lease or sublease agreements
permitting the continued location of such towers or other equipment for such
periods as the parties may reasonably determine. In no event shall the right of
any member of any Group to lease or sublease any such space for any such cell
site tower or other equipment terminate on less than six months notice.

         (f) Except as otherwise expressly provided in this Agreement or any
Ancillary Agreement, all tenant improvements, fixtures, furniture, office
equipment (other than as set forth in Section 2.3(g)), artwork and other
tangible property (other than equipment subject to capital or operating
equipment leases, which will be transferred or retained based on whether the
associated capital or operating equipment lease is or is not an Additional
Wireless Group Asset) located as of the date hereof on any real property that is
owned by or leased in the name of the Wireless Group (including by assignment of
lease pursuant to Section 2.3(c)) shall, except to the extent expressly set
forth on a Schedule referred to in Section 2.1(a), also be transferred.

                                      -22-
<PAGE>   28
         2.4. Documents Relating to Other Transfers of Assets and Assumption of
Liabilities. In furtherance of the assignment, transfer and conveyance of
Additional Wireless Group Assets and the Wireless Common Stock and the
assumption of Additional Wireless Group Liabilities set forth in Section 2.1(a),
(b) and (c), simultaneously with the execution and delivery hereof or as
promptly as practicable thereafter, (i) Parent shall execute and deliver, and
shall cause its Subsidiaries to execute and deliver, such bills of sale, stock
powers, certificates of title, assignments of contracts and other instruments of
transfer, conveyance and assignment as and to the extent necessary to evidence
the transfer, conveyance and assignment of all of Parent's and its respective
Subsidiaries' right, title and interest in and to the Additional Wireless Group
Assets to Wireless and (ii) Wireless shall execute and deliver, to Parent and
its Subsidiaries such bills of sale, stock powers, certificates of title,
assumptions of contracts and other instruments of assumption as and to the
extent necessary to evidence the valid and effective assumption of the
Additional Wireless Group Liabilities by Wireless.

         2.5. Ancillary Agreements. On or prior to the Redemption Date, each of
Parent and Wireless will execute and deliver all Ancillary Agreements to which
it is a party. The parties hereto acknowledge that the Ancillary Agreements will
contain provisions providing for modifications in the event of a Change of
Control. Each party further agrees that in the event such party undergoes a
Change of Control (without giving effect to the requirement of such definition
that a Change of Control involve a Covered Person), this Agreement and each
Ancillary Agreement will be binding upon and inure to the benefit of each other
Person involved in such Change of Control (without giving effect to the
requirement of such definition that a Change of Control involve a Covered
Person) that is thereafter an Affiliate of such party if and to the same extent
that such party itself may thereafter bound. Except to the extent provided
herein or in any Ancillary Agreement, each party further agrees that in the
event such party distributes all or a portion of its interest in any business to
its shareholders or engages in any similar transaction involving its
shareholders, this Agreement and each Ancillary Agreement will be binding upon
and inure to the benefit of each such distributed or other Person if and to the
same extent that such party itself may thereafter bound. Each party shall be
responsible for the failure of any such Affiliate to comply with any of the
foregoing. In addition, the parties agree to negotiate in good faith an
agreement for the provision of wireless service to the Parent Group.

         2.6. Disclaimer of Representations and Warranties. Each of Parent (on
behalf of itself and each member of the Parent Group) and Wireless (each on
behalf of itself and each member of the Wireless Group) understands and agrees
that, except as expressly set forth herein or in any Ancillary Agreement, no
party to this Agreement, any Ancillary Agreement or any other agreement or
document contemplated by this Agreement, any Ancillary Agreement or

                                      -23-
<PAGE>   29
otherwise, is representing or warranting in any way as to the Assets, businesses
or Liabilities transferred or assumed as contemplated hereby or thereby, as to
any consents or approvals required in connection therewith, as to the value or
freedom from any Security Interests of, or any other matter concerning, any
Assets of such party, or as to the absence of any defenses or right of setoff or
freedom from counterclaim with respect to any claim or other Asset, including
any accounts receivable, of any party, or as to the legal sufficiency of any
assignment, document or instrument delivered hereunder to convey title to any
Asset or thing of value upon the execution, delivery and filing hereof or
thereof. Except as may expressly be set forth herein or in any Ancillary
Agreement, all such Assets are being transferred on an "as is," "where is" basis
(and, in the case of any real property, by means of a quitclaim or similar form
deed or conveyance) and the respective transferees shall bear the economic and
legal risks that any conveyance shall prove to be insufficient to vest in the
transferee good and marketable title, free and clear of any Security Interest.

         2.7. Governmental Approvals and Consents. (a) If and to the extent that
the valid, complete and perfected transfer or assignment (or novation of any
federal government contract) to the Wireless Group of any Additional Wireless
Group Assets (or from the Wireless Group of any Non-Wireless Group Assets) would
be a violation of applicable laws or require any Consent or Governmental
Approval in connection with the Separation or the Distribution, then, unless
Parent and Wireless shall otherwise determine, the transfer or assignment to or
from Wireless of such Additional Wireless Group Assets or Non-Wireless Group
Assets, respectively, shall be automatically deemed deferred and any such
purported transfer or assignment shall be null and void until such time as all
legal impediments are removed and/or such Consents or Governmental Approvals
have been obtained. Notwithstanding the foregoing, any Asset allocated to the
Wireless Group shall be deemed an Additional Wireless Group Asset for purposes
of determining whether any Liability is an Additional Wireless Group Liability.

            (b) If the transfer or assignment of any Assets intended to be
transferred or assigned hereunder is not consummated prior to or at the
Redemption Date, whether as a result of the provisions of Section 2.7(a) or for
any other reason, then the Person retaining such Asset shall thereafter hold
such Asset for the use and benefit, insofar as reasonably possible, of the
Person entitled thereto (at the expense of the Person entitled thereto). In
addition, the Person retaining such Asset shall take such other actions as may
be reasonably requested by the Person to whom such Asset is to be transferred in
order to place such Person, insofar as reasonably possible, in the same position
as if such Asset had been transferred as contemplated hereby and so that all the
benefits and burdens relating to such Additional Wireless Group Assets (or such
Non-Wireless Group Assets, as the case may be), including possession, use, risk
of loss,

                                      -24-
<PAGE>   30
potential for gain, and dominion, control and command over such Assets, are to
inure from and after the Redemption Date to the Wireless Group (or the Parent
Group, as the case may be). To the extent permitted by law and to the extent
otherwise permissible in light of any required Consent and/or Governmental
Approval, the Wireless Group shall be entitled to, and shall be responsible for,
the management and of any Additional Wireless Group Asset not yet transferred to
it as a result of this Section and the parties agree to use reasonable
commercial efforts to cooperate and coordinate with respect thereto.

         (c) If and when the Consents and/or Governmental Approvals, the absence
of which caused the deferral of transfer of any Asset pursuant to Section
2.7(a), are obtained, the transfer of the applicable Asset shall be effected in
accordance with the terms of this Agreement and/or the applicable Ancillary
Agreement.

         (d) The Person retaining an Asset due to the deferral of the transfer
of such Asset shall not be obligated, in connection with the foregoing, to
expend any money unless the necessary funds are advanced by the Person entitled
to the Asset, other than reasonable out-of-pocket expenses, attorneys' fees and
recording or similar fees, all of which shall be promptly reimbursed by the
Person entitled to such Asset.

         2.8. Novation of Additional and Other Wireless Group Liabilities. (a)
Each of Parent, on the one hand, and Wireless, on the other hand, at the request
of the other, shall use its reasonable best efforts to obtain, or to cause to be
obtained, any consent, substitution, approval or amendment required to novate
(including with respect to any federal government contract) or assign all
obligations under agreements, leases, licenses and other obligations or
Liabilities of any nature whatsoever that constitute Additional Wireless Group
Liabilities or Wireless Group Liabilities, or to obtain in writing the
unconditional release of all parties to such arrangements other than any member
of the Wireless Group, so that, in any such case, Wireless and its Subsidiaries
will be solely responsible for such Liabilities; provided, however, that neither
Parent nor Wireless shall be obligated to pay any consideration therefor to any
Governmental Authority or third party from whom such consents, approvals,
substitutions and amendments are requested.

         (b) If Parent and Wireless are unable to obtain, or to cause to be
obtained, any such required consent, approval, release, substitution or
amendment, the applicable member of the Parent Group shall continue to be bound
by such agreements, leases, licenses and other obligations to the extent
required by the terms thereof and, unless not permitted by law, Wireless shall,
as agent or subcontractor for Parent or such other Person, as the case may be,
pay, perform and discharge fully all the obligations or other Liabilities of
Parent or such other Person, as the case may be, thereunder from and after the
Redemption Date. Wireless shall indemnify each

                                      -25-
<PAGE>   31
Parent Indemnitee, and hold each of them harmless against any Liabilities
arising in connection therewith except that Wireless shall not be obligated to
indemnify any Parent Indemnitee solely as a result of any failure to effect any
substitution or amendment in any Action to which Parent is a party. Parent
shall, without further consideration, pay and remit, or cause to be paid or
remitted, to Wireless promptly all money, rights and other consideration
received by it or any member of its respective Group in respect of such
performance (unless any such consideration is an Excluded Asset). If and when
any such consent, approval, release, substitution or amendment shall be obtained
or such agreement, lease, license or other rights or obligations shall otherwise
become assignable or able to be novated, Parent shall thereafter assign, or
cause to be assigned, all its rights, obligations and other Liabilities
thereunder or any rights or obligations of any member of the Parent Group to
Wireless without payment of further consideration and Wireless shall, without
the payment of any further consideration, assume such rights and obligations.

         2.9. Satisfaction of Intercompany Debt and Preferred Stock. On or prior
to the Redemption Date, (a) Wireless shall pay to Parent, or to one or more
other members of the Parent Group designated by Parent, the full amount of the
principal and accrued but unpaid interest, and the face value and accrued but
unpaid dividends, of any intercompany debt owed to any member of the Parent
Group and preferred stock obligations held by any member of the Parent Group and
(b) Parent shall pay to Wireless, or to one or more other members of the
Wireless Group designated by Wireless, the full amount of the principal and
accrued but unpaid interest of any intercompany debt owed to any member of the
Wireless Group. In addition, within 45 days following the Redemption Date,
Parent shall inform Wireless of the cashless (UNO) intercompany net
receivable/payable balance reflected on the financial records of Parent at the
time of the Redemption Date. The party with a net payable (credit) balance shall
pay by wire transfer such amount to an account specified by the party with a net
receivable (debit) balance within 15 days after notice is given.

         2.10. Joint Purchasing Arrangements (a) In the case of existing
purchasing agreements that prior to the Redemption Date provide the members of
the Wireless Group and the Parent Group with volume discounts, the parties agree
to use their respective reasonable best efforts so that to the extent permitted
under the terms of such existing agreements, after the Redemption Date, the
members of each Group shall continue to be able to make purchases and obtain the
benefits of the volume discounts. In the case of any other such contracts, the
parties will cooperate reasonably in seeking modifications to such contracts or
alternative or substitute arrangements so that to the extent practicable after
the Redemption Date, the members of each Group shall continue to be able to make
purchases and obtain the benefits of the volume discounts. Notwithstanding the
foregoing, but subject to the terms of any Wireless Group

                                      -26-
<PAGE>   32
Contract, no member of any Group shall be required to commit to any additional
purchases or other obligations, make any payments or waive any rights in order
to effect the foregoing. Each party hereby agrees to indemnify and hold harmless
the other with respect to any losses or claims arising from such first party's
own purchases, commitments or other obligations under any such contracts.

            (b) Until December 31, 2003, the parties will use reasonable
commercial efforts to cooperate with each other and as applicable with the other
Covered Subsidiaries to coordinate and combine their purchases in cases where
they purchase common supplies or use the same supplier, in each case to the
extent permitted by law from time to time. It is the intent of the parties that
this coordination and cooperation will be focused on achieving more favorable
pricing and terms for such supplies and from such suppliers by aggregating the
combined purchases of the parties. Notwithstanding the foregoing, no party shall
be obligated to make any specific purchases or to use any specific supplier
unless (a) it has previously committed to make a specific purchase or to use a
specific supplier, or (b) subsequent to the date of this Agreement it makes a
commitment for a specific purchase or to use a specific supplier. Each party
will be responsible for its own commitments and its own purchases and other
obligations made under any common or shared contracts with suppliers and will
indemnify and hold harmless the other party and, if applicable, other Covered
Subsidiaries that use such contracts.

         2.11. Certain Additional Transactions (a) Effective as of the
Redemption Date, Wireless agrees to pay or cause to be paid the amounts set
forth on Schedule 1.3(e) in respect of certain Additional Wireless Group Assets
listed thereon to the extent not theretofore paid.

         (b) Parent Group will pay to the Wireless Group 50 percent of any
amount received by Parent Group under the Letter Agreement between AT&T Froghall
Holdings LLC ("AT&T Froghall") and Tadpole B.V., dated April 27, 2001, relating
to dividends from Japan Telecom Co., Ltd. ("JT") (the "Dividend Letter"). For
the avoidance of doubt, the consolidated federal income tax liability, any
combined, consolidated or unitary state, local or foreign tax liability, and any
tax credit, resulting from the sale by AT&T Nederland JT Holdings B.V. of a 10
percent interest in JT, the April 27, 2001 distribution by Froghall B.V. to AT&T
Froghall, the payment of Dutch dividend withholding tax, the transfer of shares
of Froghall B.V. from AT&T Froghall to Froghall B.V., or any payment received
under the Dividend Letter shall be allocated under the Tax Sharing Agreement.
Each of Parent, on the one hand, and Wireless Group on the other hand, agrees to
be responsible for 50 percent of the amount of any obligation of the Parent
Group pursuant to the Letter Agreement among Parent, AT&T Froghall and Froghall
B.V., dated April 27, 2001 relating to tax indemnification (the "First
Indemnification Letter"), the Dividend

                                      -27-
<PAGE>   33
Letter, or the Letter Agreement among Parent, AT&T Froghall, Froghall B.V. and
British Telecommunications plc, dated May 14, 2001, relating to tax
indemnification (the "Second Indemnification Letter") as the case may be, as
well as 50 percent of the reasonable costs of defense (excluding costs of
in-house counsel and other personnel) incurred with respect thereto. Parent
shall promptly notify Wireless Group of any claim against Parent Group under the
First Indemnification Letter, the Second Indemnification Letter or the Dividend
Letter, but the failure to give such notice shall not relieve any member of the
Wireless Group from liability hereunder. Parent shall be entitled to control any
proceeding with respect to a claim under the First Indemnification Letter, the
Second Indemnification Letter or the Dividend Letter, except that Wireless Group
shall be entitled to participate in such proceedings at its sole expense (which
expense shall not be included in the calculations pursuant to this Section) and
its consent (such consent not be unreasonably withheld) shall be obtained in
decisions regarding settlement of any claim under the First Indemnification
Letter, the Second Indemnification Letter or the Dividend Letter. Wireless Group
hereby covenants to make payments to Parent required hereunder promptly after
such obligation arises.

         (c) Subject to the terms and conditions of this Section, each of
Parent, on the one hand, and Wireless Group on the other hand, agrees to be
responsible for 50% of the reasonable costs of defense (excluding costs of
in-house counsel and other personnel) of the Malaysian Action, and for 50% of
the amount of any judgment or settlement paid by any member of the Wireless
Group in respect of the Malaysian Action. Parent shall reimburse the Wireless
Group for Parent's share of any such expenses paid by the Wireless Group, net of
any tax benefit realized (including state and local taxes) by the Wireless Group
as a result of payment by the Wireless Group of Parent's share of such expenses.
For this purpose, the tax benefit realized by the Wireless Group shall be
determined as follows: within 45 days after the end of each quarter ending after
the Distribution Date, Wireless shall notify Parent if the Wireless Group has
realized a tax benefit (through reduction of estimated payments, receipt of a
refund, or otherwise), determined on a with and without basis, as a result of
payment by the Wireless Group of Parent's share of such expenses, until such
time as the Wireless Group has realized a tax benefit for the full amount of
such expenses.. Anything in this Section 2.11(c) to the contrary
notwithstanding, to the extent that the Wireless Group is permitted in
accordance with Section 6A(a) of the Tax Sharing Agreement to carry back a loss
arising after the Distribution Date to a taxable period ending on or before the
Distribution Date, such loss (and any resulting refund) shall be considered to
be attributable to the payment by the Wireless Group of Parent's share of such
expenses to the extent the Wireless Group did not previously recognize a tax
benefit with respect to such expenses. The Wireless Group shall promptly pay the
amount of any tax benefit realized, as determined hereunder, to Parent. If
Parent and the Wireless Group are unable to reach

                                      -28-
<PAGE>   34
agreement on whether a tax benefit was realized by the Wireless Group as a
result of payment by the Wireless Group of Parent's share of such expenses, as
determined under this Section 2.11(c), such disagreement shall be resolved by a
nationally recognized law firm or accounting firm ("Independent Third Party"),
selected in a manner similar to the procedure set forth in Section 9(e)(i) of
the Amended and Restated Tax Sharing Agreement, whose judgment shall be
conclusive and binding upon the parties. The cost of any Independent Third Party
shall be shared equally between the parties. In each case, Wireless Group shall
provide Parent with reasonable documentation with respect thereto, and Wireless
Group shall keep Parent reasonably appraised of the status of the Malaysian
Action. Wireless Group shall assume and be entitled to control the defense
and/or settlement of the Malaysian Action, except that Parent shall be entitled
to participate in the defense at its sole expense (which expense shall not be
included in the calculations pursuant to this Section) and shall be entitled to
participate and its consent shall be obtained in decisions regarding settlement
of the Malaysian Action if Parent would be required to pay some portion of the
settlement. To the extent that at any time on or after the Redemption Date,
Wireless Group (a) directly or indirectly receives any dividends or
distributions in respect of any of its direct or indirect interest in the
Malaysian Wireless Assets, or (b) directly or indirectly recognizes a gain (as
determined under United States generally accepted accounting principles) by
selling or otherwise disposing of all or any portion of its direct or indirect
interest in the Malaysian Wireless Assets (amounts identified in (a) and (b)
collectively referred to as "Malaysian Asset Proceeds"), Parent shall be
entitled to receive 50% of such Malaysian Asset Proceeds, net of any taxes paid
by the Wireless Group as a result of the receipt by the Wireless Group of
Parent's share of such proceeds, provided, that, the cumulative amount to which
Parent is entitled hereunder shall not exceed the amounts paid or payable by
Parent for costs of defense, judgment or settlement with respect to the
Malaysian Action as set forth herein (it being agreed that if any Malaysian
Asset Proceeds are received by the Wireless Group prior to the payment by Parent
of any such costs of defense, judgment or settlement, the amount otherwise
payable by Parent for such costs shall be reduced by 50% of the amount of such
Malaysian Asset Proceeds, net of any taxes paid by the Wireless Group as a
result of the receipt by the Wireless Group of Parent's share of such proceeds).
Wireless Group shall give Parent prompt notice of any transaction or event
giving rise to any Malaysian Asset Proceeds, which notice shall include copies
of all applicable documentation with respect thereto, including with respect to
all ancillary or other side arrangements but the failure to give any such notice
shall not relieve any member of the Wireless Group or Parent from any liability
hereunder. Wireless Group and Parent each hereby covenant to make payments
required hereunder promptly after such obligation arises under the terms set
forth above. For all tax purposes, the parties hereto agree to treat, and to
cause their respective affiliates to treat, (i) any payment between Parent and
the Wireless Group required by this subparagraph (c) as either a contribution by
Parent to Wireless or a distribution

                                      -29-
<PAGE>   35
by Wireless to Parent, as the case may be, occurring immediately prior to the
Distribution and (ii) any payment by a member of the Wireless Group of the
expenses described in the first sentence of this subparagraph (c) as deductible;
provided, that, in the event it is determined as a result of a determination (as
defined in Section 1313 of the Code) that any such treatment is not permissible,
the payment between Parent and the Wireless Group shall be adjusted to place the
parties in the same after-tax position they would have enjoyed absent such
determination.

         2.12. Intellectual Property Matters Notwithstanding anything in this
Agreement or any Ancillary Agreement to the contrary, no rights, title,
interest, or license in, to or under any intellectual property (including Parent
Group IPR, Wireless Group IPR, and third party and other patents, copyrights,
trademarks, service marks, mask works, proprietary information, trade secrets,
and know-how, as well as any applications or registrations therefor) are
granted, made, assigned, extended, shared or otherwise conveyed in any way,
except to the extent expressly provided in the Intellectual Property Agreement
(the "Intellectual Property Agreement"), the Trademark and Service Mark
Assignment (the "Trademark Assignment") and the Brand License Agreement (the
"Brand License Agreement"), each dated as of the date hereof, by and between
Parent and Wireless. To the extent that this Agreement or any Ancillary
Agreement contains provisions which purport to cover or address any matter
addressed in the Intellectual Property Agreement, the Trademark Assignment or
the Brand License Agreement, the Intellectual Property Agreement, the Trademark
Assignment and the Brand License Agreement, respectively, shall prevail.

         2.13. Wireless Constituent Documents Prior to the Mandatory Exchange,
Wireless and Parent will take such action necessary to amend the certificate of
incorporation and by-laws of Wireless substantially in the form set forth in
Schedule 2.13 hereto. It is also expected that as of or after the Distribution
Wireless will adopt a preferred share purchase rights plan.

                                  ARTICLE III

           ACTIONS PENDING THE MANDATORY EXCHANGE AND THE DISTRIBUTION

         3.1. Transactions Prior to the Mandatory Exchange and the Distribution.
(a) Parent and Wireless shall take such efforts regarding the Registration
Statements, including the prospectuses included therein, and any amendments or
supplements thereto, as are reasonably necessary to effect the transactions
contemplated hereby. Parent and Wireless shall also cooperate in preparing,
filing with the Commission and causing to become effective any registration
statements or amendments thereof that are required to reflect the establishment
of, or

                                      -30-
<PAGE>   36
amendments to, any employee benefit and other plans necessary or appropriate in
connection with the Separation Transactions and the other transactions
contemplated by this Agreement or the Ancillary Agreements.

            (b) Wireless shall use its reasonable best efforts to take all such
action as may be necessary or appropriate under state securities and blue sky
laws of the United States (any comparable laws under any foreign jurisdictions)
in connection with the Separation Transactions and the other transactions
contemplated by this Agreement or the Ancillary Agreements.

         (c) Parent and Wireless shall cooperate in the preparation of, and
shall file and use reasonable best efforts to seek to make effective, an
application for listing of the Wireless Common Stock to be issued in the
Mandatory Exchange and the Distribution on the NYSE or the Nasdaq NMS, subject
to official notice of issuance.

         (d) Parent and Wireless will effect an appropriate split or other
recapitalization of the Wireless Common Stock.. In the event that the number of
shares of Wireless Common Stock distributed in the Mandatory Exchange for each
share of Parent Wireless Group Common Stock outstanding on the Record Date does
not equal one, the provisions of this Agreement shall be appropriately adjusted.

         3.2. Additional Distribution On or prior to the Redemption Date, Parent
may elect to effect one or more Additional Distributions, at such times, in such
manner (whether by exchange offer, dividend or otherwise) and in such amounts as
Parent in its sole discretion may decide.

                                   ARTICLE IV

                             THE MANDATORY EXCHANGE

         4.1. The Mandatory Exchange. (a) Subject to Section 4.3 hereof, on or
prior to the Redemption Date, Parent will deliver to the Agent, for the benefit
of holders of record of Parent Wireless Group Common Stock on the Record Date, a
single stock certificate endorsed by Parent in blank representing (or authorize
the related book-entry transfer of) a number of shares of Wireless Common Stock
equal to the number of issued and outstanding shares of Parent Wireless Group
Common Stock on the Record Date, and shall cause the transfer agent for the
shares of Parent Wireless Group Common Stock to instruct the Agent, from and
after the Redemption Date, to deliver in exchange for such shares (or book-entry
transfer authorizations

                                      -31-
<PAGE>   37
of) of Parent Wireless Group Common Stock the appropriate number of shares of
Wireless Common Stock to each such holder or designated transferee or
transferees of such holder.

         (b) Subject to Section 4.4, each holder of Parent Wireless Group Common
Stock on the Record Date (or such holder's designated transferee or transferees)
will be entitled to receive in redemption of such holder's shares of Parent
Wireless Group Common Stock a number of shares of Wireless Common Stock equal to
the number of shares of Parent Wireless Group Common Stock held by such holder
on the Record Date.

         (c) Wireless and Parent, as the case may be, will provide to the Agent
all share certificates and any information required in order to complete the
Mandatory Exchange on the basis specified above.

         4.2. Actions Prior to the Mandatory Exchange. (a) Parent and Wireless
shall prepare and mail, prior to the Redemption Date, to the holders of Parent
Wireless Group Common Stock, a notice of redemption and such information
concerning Wireless and its business, operations and management, the Mandatory
Exchange, Distribution and such other matters as Parent shall reasonably
determine and as may be required by the Parent Charter, law or the applicable
rules and regulations of the Commission and the NYSE. Parent and Wireless will
prepare, and Wireless will, to the extent required under applicable law, file
with the Commission any such documentation and any requisite no action letters
which Parent determines are necessary or desirable to effectuate the Mandatory
Exchange and Parent and Wireless shall each use their respective reasonable best
efforts to obtain all necessary approvals from the Commission with respect
thereto as soon as practicable.

         (b) Parent and Wireless shall take all such action as Parent may
determine necessary or appropriate under the securities or blue sky laws of the
United States (and any comparable laws under any foreign jurisdiction) in
connection with the Mandatory Exchange.

         4.3. Conditions to the Mandatory Exchange. The Parent Board shall have
the sole discretion to determine the date of consummation of the Mandatory
Exchange and whether to consummate the Mandatory Exchange. The Parent Board
currently intends to effect the Mandatory Exchange as soon as practical
following the satisfaction or the waiver by Parent of the conditions set forth
below:

                  (a) The transfers of the Additional Wireless Group Assets, and
         the assignments and assumptions to and by Wireless of the Additional
         Wireless Group Liabilities, shall have been effected such that Wireless
         shall be both a "Qualifying Subsidiary" and a

                                      -32-
<PAGE>   38
         "Wireless Group Subsidiary" as such terms are defined in the Parent
         Charter, and there shall be no other circumstance that would prevent
         the Mandatory Exchange from being made in accordance with the terms of
         the Parent Charter;

                  (b) The Registration Statement relating to shares of Wireless
         Common Stock shall have been filed and declared effective by the
         Commission, and there shall be no stop-order in effect with respect
         thereto;

                  (c) The actions and filings with regard to state securities
         and blue sky laws of the United States (and any comparable laws under
         any foreign jurisdictions) described in Section 3.1 shall have been
         taken and, where applicable, become effective or been accepted;

                  (d) Any material Governmental Approvals and Consents necessary
         to consummate the Mandatory Exchange or the Distribution in the manner
         contemplated by this Agreement shall have been obtained and be in full
         force and effect;

                  (e) The Wireless Common Stock to be issued in the Mandatory
         Exchange and the Distribution shall have been accepted for listing on
         the NYSE or the Nasdaq NMS, subject to official notice of issuance;

                  (f) All conditions to permit the Distribution to qualify as a
         tax-free distribution to Parent, Wireless and Parent's shareholders
         shall, to the extent applicable as of the time of the Mandatory
         Exchange, be satisfied and there shall be no event or condition that is
         likely to cause any of such conditions not to be satisfied as of the
         time of the Mandatory Exchange or thereafter;

                  (g) No order, injunction or decree issued by any court or
         agency of competent jurisdiction or other legal restraint or
         prohibition preventing the consummation of the Separation, the
         Mandatory Exchange or the Distribution or any of the other transactions
         contemplated by this Agreement or any Ancillary Agreement shall be in
         effect;

                  (h) This Agreement shall not have been terminated; and

                  (i) A private letter ruling from the Internal Revenue Service
         shall have been obtained, and shall continue in effect, to the effect
         that no gain or loss will be recognized by Parent, Wireless or Parent's
         or Wireless' shareholders for federal income tax purposes (including
         the holders of Parent Wireless Group Common Stock) by virtue of
         Sections

                                      -33-
<PAGE>   39
         361(c) and 368(a)(1)(D) as a result of (i) the Mandatory Exchange and
         the Distribution, (ii) the transfer to Wireless of the Additional
         Wireless Assets, (iii) the assumption by Wireless of the Additional
         Wireless Group Liabilities, and (iv) the distribution of proceeds in
         respect of the intercompany debt and preferred stock, and such ruling
         shall be in form and substance satisfactory to Parent.

The foregoing conditions are for the sole benefit of Parent and shall not give
rise to or create any duty on the part of Parent or the Parent Board of
Directors to waive or not waive any such condition.

         4.4. Fractional Shares. As soon as practicable after the Redemption
Date, Parent shall direct the Agent to determine the number of whole shares and
fractional shares of Wireless Common Stock allocable to each holder of record or
beneficial owner of Parent Wireless Group Common Stock as of the Record Date, to
aggregate all such fractional shares and sell the whole shares obtained thereby
at the direction of Parent either to Parent, in open market transactions or
otherwise, in each case at then prevailing trading prices, and to cause to be
distributed to each such holder or for the benefit of each such beneficial
owner, in lieu of any fractional share, such holder's or owner's ratable share
of the proceeds of such sale, after making appropriate deductions of the amount
required to be withheld for federal income tax purposes and after deducting an
amount equal to all brokerage charges, commissions and transfer taxes attributed
to such sale. Parent and the Agent shall use their reasonable best efforts to
aggregate the shares of Parent Wireless Group Common Stock that may be held by
any beneficial owner thereof through more than one account in determining the
fractional share allocable to such beneficial owner.

                                   ARTICLE V

                                THE DISTRIBUTION

         5.1. The Distribution. (a) In consideration of all the liabilities and
obligations assumed by Wireless in the Employee Benefits Agreement, dated as of
the date hereof, by and between Parent and Wireless, including without
limitation the provisions of Section 5.3 of the Employee Benefits Agreement,
Parent agrees that the denominator of the Wireless Group Allocation Fraction (as
defined in the Charter) shall be reduced, effective as of immediately prior to
the Distribution Date, by 12,577,650. Subject to Section 5.3 hereof, on or prior
to the Distribution Date, Parent will deliver to the Agent, for the benefit of
holders of record of Parent Common Stock on the Record Date, a single stock
certificate endorsed by Parent in blank, representing (or authorize the related
book-entry transfer of) all of the outstanding shares of

                                      -34-
<PAGE>   40
Wireless Common Stock then owned by Parent or any member of the Parent Group
(after giving effect to the Mandatory Exchange), and shall cause the transfer
agent for the shares of Parent Common Stock to instruct the Agent to distribute
on the Distribution Date the appropriate number of such shares (or book-entry
transfer authorizations) of Wireless Common Stock to each such holder or
designated transferee or transferees of such holder.

         (a) Subject to Section 5.4, each holder of Parent Common Stock on the
Record Date (or such holder's designated transferee or transferees) will be
entitled to receive in the Distribution a number of shares of Wireless Common
Stock equal to the number of shares of Parent Common Stock held by such holder
on the Record Date multiplied by a fraction the numerator of which shall be (1)
the denominator of the Wireless Group Allocation Fraction on the Record Date
(which for purposes of clarification shall include shares of Parent Wireless
Group Common Stock issuable upon conversion of the Parent Wireless Group
Preferred Stock) minus (2) the sum of (w) the number of shares of Parent
Wireless Group Common Stock outstanding on the Record Date, (x) 12,577,650
(without duplication of any adjustment contemplated by Section 5.1(a)), (y) the
number (to the nearest whole number) obtained by dividing $3 billion by the
closing share price of the Parent Wireless Group Common Stock on The New York
Stock Exchange on June 15, 2001 (without giving effect to any extended hours
trading) and (z) the number of shares of Parent Wireless Group Common Stock into
which the shares of Parent Wireless Group Preferred Stock outstanding on the
Record Date are convertible), and the denominator of which shall be the number
of shares of Parent Common Stock outstanding on the Record Date. All
calculations pursuant to this Section shall be made as of the close of business
on the Record Date.

         (c) Wireless and Parent, as the case may be, will provide to the Agent
all share certificates and any information reasonably required in order to
complete the Distribution on the basis specified above.

         5.2. Actions Prior to the Distribution. (a) Parent and Wireless shall
prepare and mail, prior to the Distribution Date, to the holders of Parent
Common Stock as of the Record Date, such information concerning Wireless and its
business, operations and management, the Distribution and such other matters as
Parent shall reasonably determine and as may be required by law. Parent and
Wireless will prepare, and Wireless will, to the extent required under
applicable law, file with the Commission any such documentation which Parent
determines are necessary or desirable to effectuate the Distribution and Parent
and Wireless shall each use their respective reasonable best efforts to obtain
all necessary approvals from the Commission with respect thereto as soon as
practicable.

                                      -35-
<PAGE>   41
          (b) Parent and Wireless shall take all such action as Parent may
determine necessary or appropriate under the securities or blue sky laws of the
United States (and any comparable laws under any foreign jurisdiction) in
connection with the Distribution.

          5.3. Conditions to Distribution. Parent shall effect the Distribution
concurrently with the Mandatory Exchange, subject to the satisfaction or the
waiver by Parent of the other conditions set forth below:

               (a) the Mandatory Exchange shall occur concurrently in accordance
          with the terms of this Agreement;

               (b) a private letter ruling from the Internal Revenue Service
          shall have been obtained, and shall continue in effect, to the effect
          set forth in Section 4.3(i) hereof;

               (c) any material Governmental Approvals and Consents necessary to
          consummate the Distribution in the manner contemplated by this
          Agreement shall have been obtained and be in full force and effect;
          and

               (d) no order, injunction or decree issued by any court or agency
          of competent jurisdiction or other legal restraint or prohibition
          preventing the consummation of the Distribution shall be in effect and
          no other event outside the control of Parent shall have occurred or
          failed to occur that prevents the consummation of the Distribution.

The foregoing conditions are for the sole benefit of Parent and shall not give
rise to or create any duty on the part of Parent or the Parent Board of
Directors to waive or not waive any such condition.

          5.4. Fractional Shares. As soon as practicable after the Distribution
Date, Parent shall direct the Agent to determine the number of whole  shares
and fractional shares of Wireless Common Stock allocable to  each holder of
record or beneficial owner of Parent Common Stock as of the  Record Date, to
aggregate all such fractional shares and sell the whole shares obtained thereby
at the direction of Parent either to Parent, in open market transactions or
otherwise, in each case at then prevailing trading prices, and to cause to be
distributed to each such holder or for the benefit of each such beneficial
owner, in lieu of any fractional share, such holder's or owner's ratable share
of the proceeds of such sale, after making appropriate deductions of the amount
required to be withheld for federal income tax purposes and after deducting an
amount equal to all brokerage charges, commissions and transfer taxes
attributed to such sale. Parent and the Agent shall use their reasonable best
efforts to aggregate the shares of

                                      -36-
<PAGE>   42
Parent Common Stock that may be held by any beneficial owner thereof through
more than one account in determining the fractional share allocable to such
beneficial owner.

                                   ARTICLE VI

                        MUTUAL RELEASES; INDEMNIFICATION

          6.1. Release of Pre-Closing Claims. (a) Except as provided in Section
6.1(c), effective as of the Redemption Date, Wireless does hereby, for itself
and each other wholly owned member of the Wireless Group, their respective
successors and assigns, and all Persons who at any time prior to the Redemption
Date have been shareholders, directors, officers, agents or employees of any
wholly owned member of the Wireless Group (in each case, in their respective
capacities as such), remise, release and forever discharge each of Parent, the
wholly owned members of the Parent Group, their respective successors and
assigns, and all Persons who at any time prior to the Redemption Date have been
shareholders, directors, officers, agents or employees of Parent or any wholly
owned member of the Parent Group (in each case, in their respective capacities
as such), and their respective heirs, executors, administrators, successors and
assigns, from any and all Liabilities whatsoever, whether at law or in equity
(including any right of contribution), whether arising under any contract or
agreement, by operation of law or otherwise, existing or arising from any acts
or events occurring or failing to occur or alleged to have occurred or to have
failed to occur or any conditions existing or alleged to have existed on or
before the Redemption Date, including in connection with the transactions and
all other activities to implement any of the Separation, the Mandatory Exchange
and the Distribution.

          (b) Except as provided in Section 6.1(c), effective as of the
Redemption Date, Parent does hereby, for itself and each other wholly owned
member of the Parent Group, their respective successors and assigns, and all
Persons who at any time prior to the Redemption Date have been shareholders,
directors, officers, agents or employees of any wholly owned member of the
Parent Group (in each case, in their respective capacities as such), remise,
release and forever discharge Wireless, the wholly owned members of the Wireless
Group, their successors and assigns, and all Persons who at any time prior to
the Redemption Date have been shareholders, directors, officers, agents or
employees of Wireless or any wholly owned member of the Wireless Group (in each
case, in their respective capacities as such), and their respective heirs,
executors, administrators, successors and assigns, from any and all Liabilities
whatsoever, whether at law or in equity (including any right of contribution),
whether arising under any contract or agreement, by operation of law or
otherwise, existing or arising from any acts or events occurring or failing to
occur or alleged to have occurred or to have failed to occur or any

                                      -37-
<PAGE>   43
conditions existing or alleged to have existed on or before the Redemption Date,
including in connection with the transactions and all other activities to
implement any of the Separation, the Mandatory Exchange and the Distribution.

               (c) Nothing contained in Section 6.1(a) or (b) shall impair any
right of any Person to enforce this Agreement, any Ancillary Agreement or any
agreements, arrangements, commitments or understandings that are specified in
Section 2.2(b) or the applicable Schedules thereto, in each case in accordance
with its terms. Nothing contained in Section 6.1(a) or (b) shall release any
Person from:

                              (i) any Liability provided in or resulting from
               any agreements, arrangements, commitments or understandings among
               any members of the Parent Group or the Wireless Group that is
               specified in Section 2.2(b) or the applicable Schedules thereto,
               any other Liability specified in such Section 2.2(b), or any
               other Liability that survives the Redemption Date;

                              (ii) any Liability, contingent or otherwise,
               assumed, transferred, assigned or allocated to the Group of which
               such Person is a member in accordance with, or any other
               Liability of any member of any Group under, this Agreement or any
               Ancillary Agreement;

                              (iii) any Liability for the sale, lease,
               construction or receipt of goods, property or services purchased,
               obtained or used in the ordinary course of business by a member
               of one Group from a member of any other Group prior to the
               Redemption Date;

                              (iv) any Liability for unpaid amounts for products
               or services or refunds owing on products or services due on a
               value-received basis for work done by a member of one Group at
               the request or on behalf of a member of another Group;

                              (v) any Liability that the parties may have with
               respect to indemnification or contribution pursuant to this
               Agreement for claims brought against the parties by third
               Persons, which Liability shall be governed by the provisions of
               this Article VI and, if applicable, the appropriate provisions of
               the Ancillary Agreements;

                              (vi) any Liability the release of which would
               result in the release of any Person other than a Person released
               pursuant to this Section 6.1; provided that the parties agree not
               to bring suit or permit any of their Subsidiaries to bring suit
               against any Person with

                                      -38-
<PAGE>   44
               respect to any Liability to the extent that such Person would be
               released with respect to such Liability by this Section 6.1 but
               for the provisions of this clause (vi); or

                              (vii) any Liability that ARIC may have under any
               ARIC Wireless Policy (unless a novation shall have been effected
               in accordance with the provisions of this Agreement).

               (d) Except for claims against ARIC under any ARIC Wireless Policy
(unless a novation shall have been effected in accordance with the provisions of
this Agreement), Wireless shall not make, and shall not permit any member of the
Wireless Group to make, any claim or demand, or commence any Action asserting
any claim or demand, including any claim of contribution or any indemnification,
against Parent or any member of the Parent Group, or any other Person released
pursuant to Section 6.1(a), with respect to any Liabilities released pursuant to
Section 6.1(a). Parent shall not, and shall not permit any member of the Parent
Group, to make any claim or demand, or commence any Action asserting any claim
or demand, including any claim of contribution or any indemnification, against
Wireless or any member of the Wireless Group, or any other Person released
pursuant to Section 6.1(b), with respect to any Liabilities released pursuant to
Section 6.1(b).

               (e) At any time, at the request of any other party, each party
shall cause each member of its respective Group to execute and deliver releases
reflecting the provisions of this Section 6.1.

               6.2. Indemnification by Wireless. Except as provided in Section
6.4, Wireless shall indemnify, defend and hold harmless Parent, each member of
the Parent Group and each of their respective directors, officers and employees,
and each of the heirs, executors, successors and assigns of any of the foregoing
(collectively, the "Parent Indemnitees"), from and against any and all
Liabilities of the Parent Indemnitees relating to, arising out of or resulting
from any of the following items regardless of whether arising from or alleged to
arise from negligence, recklessness, violation of law, fraud or
misrepresentation (without duplication):

               (a) the failure of Wireless or any other member of
the Wireless Group or any other Person to pay, perform or otherwise promptly
discharge any Wireless Group Liabilities, any Additional Wireless Group
Liabilities or any Wireless Group Contract in accordance with their respective
terms, whether prior to or after the Redemption Date or the date hereof;

                                      -39-
<PAGE>   45
                              (b) the Wireless Group, any Wireless Group
               Liability, any Additional Wireless Group Liability, any Wireless
               Group Asset, any Additional Wireless Group Asset or any Wireless
               Group Contract; and

                              (c) any breach by Wireless or any member of the
               Wireless Group of this Agreement or any of the Ancillary
               Agreements.

                              (d) any untrue statement or alleged untrue
               statement of a material fact or omission or alleged omission to
               state a material fact required to be stated therein or necessary
               to make the statements therein not misleading, in any case to the
               extent relating to the Wireless Group contained in any
               Registration Statement or other document or in any registration
               statement or other document relating to the exchange offer
               commenced in connection with the Additional Distribution (it
               being agreed that all Liabilities relating to, arising out of, or
               resulting from the consummation of the Separation Transactions
               shall be allocated pursuant to Section 1.4(j) and not this
               clause).

               6.3. Indemnification by Parent. Parent shall indemnify, defend
and hold harmless Wireless, each member of the Wireless Group and each of their
respective directors, officers and employees, and each of the heirs, executors,
successors and assigns of any of the foregoing (collectively, the "Wireless
Indemnitees"), from and against any and all Liabilities of the Wireless
Indemnitees relating to, arising out of or resulting from any of the following
items regardless of whether arising from or alleged to arise from negligence,
recklessness, violation of law, fraud or misrepresentation (without
duplication):

               (a) the failure of Parent or any other member of the Parent Group
or any other Person to pay, perform or otherwise promptly discharge any
Liabilities of the Parent Group (including all Excluded Liabilities) other than
the Wireless Group Liabilities or Additional Wireless Group Liabilities, whether
prior to or after the Redemption Date or the date hereof;

               (b) any Liability of the Parent Group other than the Wireless
Group Liabilities and Additional Wireless Group Liabilities;

               (c) any breach by Parent or any member of the Parent Group of
this Agreement or any of the Ancillary Agreements; and

               (d) except to the extent contemplated by Section 6.2(d), any
untrue statement or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading

                                      -40-
<PAGE>   46
contained in any Registration Statement or other document utilized in connection
with the Separation Transactions or in any registration statement or other
document relating to the exchange offer commenced in connection with the
Additional Distribution (it being agreed that all Liabilities relating to,
arising out of, or resulting from the consummation of the Separation
Transactions shall be allocated pursuant to Section 1.4(j) and not this clause).

               6.4. Indemnification Obligations Net of Insurance Proceeds and
Other Amounts. (a) The parties intend that any Liability subject to
indemnification or reimbursement pursuant to this Article VI will be net of
Insurance Proceeds. Accordingly, the amount which any party (an "Indemnifying
Party") is required to pay to any Person entitled to indemnification hereunder
(an "Indemnitee") will be reduced by any Insurance Proceeds theretofore actually
recovered by or on behalf of the Indemnitee in reduction of the related
Liability. If an Indemnitee receives a payment (an "Indemnity Payment") required
by this Agreement from an Indemnifying Party in respect of any Liability and
subsequently receives Insurance Proceeds, then the Indemnitee will pay to the
Indemnifying Party an amount equal to the excess of the Indemnity Payment
received over the amount of the Indemnity Payment that would have been due if
the Insurance Proceeds had been received, realized or recovered before the
Indemnity Payment was made.

               (b) An insurer who would otherwise be obligated to pay any claim
shall not be relieved of the responsibility with respect thereto or, solely by
virtue of the indemnification provisions hereof, have any subrogation rights
with respect thereto, it being expressly understood and agreed that no insurer
or any other third party shall be entitled to a "windfall" (i.e., a benefit it
would not be entitled to receive in the absence of the indemnification
provisions) by virtue of the indemnification provisions hereof.

               (c) With respect to all policies of insurance other than ARIC
Wireless Policies, the parties agree to act in good faith and to use their
reasonable best efforts to preserve and maximize the insurance benefits due to
be provided thereunder and to cooperate with one another as necessary to permit
each other to access or obtain the benefits under those policies, provided
however that nothing in this Section shall be construed to prevent any party or
any other Person from asserting claims for insurance benefits or accepting
insurance benefits provided by the policies (including the ARIC Wireless
Policies). The parties agree to negotiate in good faith with respect to
procedures that will apply after the Redemption Date for claims under the ARIC
Wireless Policies (it being agreed that such procedures shall neither increase
nor decrease the rights of any Person in respect thereof). The parties agree to
exchange information upon reasonable request of the other party regarding
requests that they have made for insurance benefits, notices of claims,
occurrences and circumstances that they have submitted to the

                                      -41-
<PAGE>   47
insurance companies or other entities managing the policies, payments they have
received from the insurance companies, including any agreements to make
payments, and any other information that the parties may need to determine the
status of the insurance policies and the continued availability of benefits
thereunder.

               (d) Other than in the case of ARIC Wireless Insurance Policies,
(1) each party agrees to use its reasonable best efforts to collect any
Insurance Proceeds that may be applicable to any Third Party Claim or other
claim that could give rise to a right of indemnification hereunder (it being
agreed that any costs of collection shall be indemnifiable hereunder to the same
extent as the underlying Third Party Claim or other claim); (2) without limiting
the foregoing, the parties agree to cooperate in connection with the submission
of any claims and, to the extent permitted under the applicable policy or other
agreement, to permit the Indemnifying Party to pursue claims against the
applicable insurance company or other Person and (3) the provisions of this
Section 6.4(d) shall apply to any Insurance Proceeds that may be applicable to
the costs of defense as well as to any ultimate Liability.

               (e) Any Insurance Proceeds recovered at any time shall be applied
in the manner set forth in Section 6.4(a).

               6.5. Procedures for Indemnification of Third Party Claims. (a) If
an Indemnitee shall receive notice or otherwise learn of the assertion by a
Person (including any Governmental Authority) who is not a member of the Parent
Group or the Wireless Group of any claim or of the commencement by any such
Person of any Action (collectively, a "Third Party Claim") with respect to which
an Indemnifying Party may be obligated to provide indemnification to such
Indemnitee pursuant to Section 6.2 or 6.3, or any other Section of this
Agreement or any Ancillary Agreement, such Indemnitee shall give such
Indemnifying Party and, if Parent is not the Indemnifying Party, Parent written
notice thereof within 20 days after receiving notice of such Third Party Claim.
Any such notice shall describe the Third Party Claim in reasonable detail.
Notwithstanding the foregoing, the failure of any Indemnitee or other Person to
give notice as provided in this Section 6.5(a) shall not relieve the related
Indemnifying Party of its obligations under this Article VI, except to the
extent that such Indemnifying Party is actually prejudiced by such failure to
give notice.

               (b) An Indemnifying Party may elect to defend (and, unless the
Indemnifying Party has specified any reservations or exceptions, to seek to
settle or compromise), at such Indemnifying Party's own expense and by such
Indemnifying Party's own counsel, any Third Party Claim. Within 30 days after
the receipt of notice from an Indemnitee in accordance with Section 6.5(a) (or
sooner, if the nature of such Third Party Claim so requires), the Indemnifying

                                      -42-
<PAGE>   48
Party shall notify the Indemnitee of its election whether the Indemnifying Party
will assume responsibility for defending such Third Party Claim, which election
shall specify any reservations or exceptions. After notice from an Indemnifying
Party to an Indemnitee of its election to assume the defense of a Third Party
Claim, such Indemnitee shall have the right to employ separate counsel and to
participate in (but not control) the defense, compromise, or settlement thereof,
but the fees and expenses of such counsel shall be the expense of such
Indemnitee except as set forth in the next sentence. The Indemnifying Party
shall not have the right to admit Liability on behalf of the Indemnitee and
shall not compromise or settle a Third Party Claim to the extent the compromise
or settlement could prejudice the interests of the Indemnitee, without the
express prior consent of the Indemnitee. In the event that the Indemnifying
Party has elected to assume the defense of the Third Party Claim but has
specified, and continues to assert, any reservations or exceptions in such
notice, then, in any such case, the reasonable fees and expenses of one separate
counsel for all Indemnitees shall be borne by the Indemnifying Party.

               (c) If an Indemnifying Party elects not to assume responsibility
for defending a Third Party Claim, or fails to notify an Indemnitee of its
election as provided in Section 6.5(b), such Indemnitee may defend such Third
Party Claim at the cost and expense of the Indemnifying Party.

               (d) Unless the Indemnifying Party has failed to assume the
defense of the Third Party Claim in accordance with the terms of this Agreement,
no Indemnitee may settle or compromise any Third Party Claim without the consent
of the Indemnifying Party.

               (e) No Indemnifying Party shall consent to entry of any judgment
or enter into any settlement of the Third Party Claim without the consent of the
Indemnitee (which shall not be unreasonably withheld) if the effect thereof is
to permit any injunction, declaratory judgment, other order or other
non-monetary relief to be entered, directly or indirectly, against any
Indemnitee.

               (f) The provisions of Section 6.5 and Section 6.6 shall not apply
to Taxes (which are covered by the Tax Sharing Agreement) or to the matters
covered by Sections 7.2 and 7.3 hereof.

               (g) The parties may enter into one or more additional agreements
providing for procedures and other matters relating to the handling of Actions
and related matters which shall be deemed Ancillary Agreements for purposes
hereof.

                                      -43-

<PAGE>   49
               6.6. Additional Matters. (a) Any claim on account of a Liability
that does not result from a Third Party Claim shall be asserted by written
notice given by the Indemnitee to the related Indemnifying Party. Such
Indemnifying Party shall have a period of 30 days after the receipt of such
notice within which to respond thereto. If such Indemnifying Party does not
respond within such 30-day period, such Indemnifying Party shall be deemed to
have refused to accept responsibility to make payment. If such Indemnifying
Party does not respond within such 30-day period or rejects such claim in whole
or in part, such Indemnitee shall be free to pursue such remedies as may be
available to such party as contemplated by this Agreement and the Ancillary
Agreements.

               (b) In the event of payment by or on behalf of any Indemnifying
Party to any Indemnitee in connection with any Third Party Claim, such
Indemnifying Party shall be subrogated to and shall stand in the place of such
Indemnitee as to any events or circumstances in respect of which such Indemnitee
may have any right, defense or claim relating to such Third Party Claim against
any claimant or plaintiff asserting such Third Party Claim or against any other
person. Such Indemnitee shall cooperate with such Indemnifying Party in a
reasonable manner, and at the cost and expense of such Indemnifying Party, in
prosecuting any subrogated right, defense or claim.

               (c) In the event of an Action in which the Indemnifying Party is
not a named defendant, if either the Indemnified Party or Indemnifying Party
shall so request, the parties shall endeavor to substitute the Indemnifying
Party for the named defendant, if at all practicable. If such substitution or
addition cannot be achieved for any reason or is not requested, the named
defendant shall allow the Indemnifying Party to manage the Action as set forth
in this Section.

               6.7. Remedies Cumulative. The remedies provided in this Article
VI shall be cumulative and shall not preclude assertion by any Indemnitee of any
other rights or the seeking of any and all other remedies against any
Indemnifying Party.

               6.8. Survival of Indemnities. The rights and obligations of each
of Parent and Wireless and their respective Indemnitees under this Article VI
shall survive the sale or other transfer by any party of any Assets or
businesses or the assignment by it of any Liabilities.

               6.9. Combined Service Claims; Similar Matters The parties agree
to use reasonable efforts to cooperate with respect to the defense of any
Combined Service Claims and any other Action or threatened Action involving or
alleged to involve Liabilities of each of the Wireless Group and the Parent
Group so that to the maximum extent practicable each Group

                                      -44-

<PAGE>   50
shall be entitled to control the defense of any Action to the extent it
represents a Liability of such Group.

               6.10. Specified Matters In order to facilitate the defense of any
Specified Matters, the parties agree that (a) each of Parent and Wireless shall
be responsible for its own costs of defense of any Specified Matters, regardless
of the outcome thereof, (b) the parties shall cooperate in the defense thereof,
and (c) Parent shall be entitled to control the defense thereof although
Wireless shall be equally entitled to participate in the defense thereof with
counsel of its own selection to the extent it may have any Liability therefor;
provided, however, that after the Distribution Date neither Parent nor Wireless
may settle all or any portion of any such Action or engage in settlement
negotiations unless such party has obtained the prior written consent of the
other party (which consent shall not be unreasonably withheld) or unless any
remaining Liability of the other party, the other party's affiliates and their
respective officers and directors will be fully released as a result of such
settlement. In the event of any conflict with Section 6.5 hereof, in the case of
any Specified Matters, the provisions of this Section shall control.

               6.11. IPR Exception Sections 6.2 and 6.3 hereof shall not be
construed to create an indemnification obligation for infringement of third
party patents to the extent that such obligation would be based on a grant of
patent license rights under the Intellectual Property Agreement.

                                  ARTICLE VII

                       INSURANCE AND CERTAIN OTHER MATTERS

               7.1. Insurance Matters (a) Except as may otherwise be provided in
any Ancillary Agreement, the parties intend that to the extent permitted under
the terms of any applicable policy, Wireless and each other member of the
Wireless Group shall be successors-in-interest to all rights that any member of
the Wireless Group may have as of the Redemption Date as a subsidiary,
affiliate, division or department of Parent prior to the Redemption Date under
any policy of insurance issued to Parent by any insurance carrier (whether or
not affiliated with Parent) or under any agreements related to such policies
executed and delivered prior to the Redemption Date, including any rights such
member of the Wireless Group may have, as an insured or additional named
insured, subsidiary, affiliate, division or department, to avail itself of any
such policy of insurance or any such agreements related to such policies as in
effect prior to the Redemption Date. Notwithstanding the foregoing, Wireless
acknowledges that as of the Redemption Date, Parent intends to amend each such
insurance policy to remove the members of the Wireless Group and their
respective employees, officers and directors as insured parties

                                      -45-

<PAGE>   51
thereunder in respect of periods from and after the Redemption Date and that
none of the foregoing may be entitled to make any claims for insurance
thereunder either to the extent such claims are based upon conduct or injury or
other events occurring from and after the Redemption Date or to the extent such
claims are precluded by the terms of any "claims made" policies. Except for the
limitations contemplated by the preceding sentence and except as otherwise arise
pursuant to Section 7.1(b), the provisions of this Agreement are not intended to
relieve any insurer of any Liability under any policy. No member of the Parent
Group shall be deemed to have made any representation or warranty as to the
availability of any such insurance policy. Wireless on behalf of itself and each
member of the Wireless Group agrees that no member of the Parent Group other
than ARIC will have any Liability in respect of any ARIC Policy.

               (b) Notwithstanding anything in any ARIC Wireless Policy to
the contrary, ARIC shall be entitled to assign any ARIC Wireless Policy on
identical terms and conditions to any reputable insurance company and/or to
effect a novation of any ARIC Wireless Policy upon assignment to and assumption
by any reputable insurance company with an A.M. Best's rating of at least A/10.
Wireless agrees to cooperate fully, and to cause each member of the Wireless
Group to cooperate fully, with Parent and ARIC in connection with the foregoing,
including by providing or causing to be provided any information requested by
insurers or reinsurers in connection with any such proposed assignment,
assumption or novation. Prior to assigning any ARIC Wireless Policy to a third
party, Wireless shall have the option (which must be exercised in writing within
thirty days after receiving written notice from Parent (which notice from Parent
shall contain a description of the terms of the proposed assignment and of the
proposed new policy and the identity of the proposed assignee)) to have such
policy and the obligations thereunder assigned to Wireless for the cost AT&T
would incur in assigning such policy to a third party.

               (c) Parent agrees to obtain Directors and Officers, Outside
Directors and Officers, and Fiduciary Liability run-off insurance from third
party commercial insurers in dollar amounts equal to those amounts maintained by
Parent for all its insureds (including but not limited to Wireless) as of the
Redemption Date (it being agreed that insureds of Parent other than Wireless
shall also continue to be able to claim under such policies). Coverage under
these policies shall apply to all insureds of Parent and its Subsidiaries for
claims that are reported subsequent to the Redemption Date and that relate to
acts that occurred during the period from September 30, 1996 until the
Redemption Date. Such policies shall remain in force for a period of six years
following the Redemption Date.

                                      -46-

<PAGE>   52
               (d) Subject to Section 7.1(c) relating to run off policies and
except for claims against ARIC under the ARIC Wireless Policies (unless a
novation shall have been effected in accordance with the provisions of this
Agreement), in no event shall Parent, any other member of the Parent Group or
any Parent Indemnitee have liability or obligation whatsoever to any member of
the Wireless Group in the event that any insurance policy or other contract of
insurance shall be terminated or otherwise cease to be in effect for any reason,
shall be unavailable or inadequate to cover any Liability of any member of the
Wireless Group for any reason whatsoever or shall not be renewed or extended
beyond the current expiration date.

               (e) This Agreement shall not be considered as an attempted
assignment of any policy of insurance or as a contract of insurance and shall
not be construed to waive any right or remedy of any member of the Parent Group
in respect of any insurance policy or any other contract of insurance.

               (f) Subject to Section 7.1(c) relating to run off policies and
except for claims against ARIC under the ARIC Wireless Policies (unless a
novation shall have been effected in accordance with the provisions of this
Agreement), Wireless does hereby, for itself and each other member of the
Wireless Group, agree that no member of the Parent Group or any Parent
Indemnitee shall have any Liability whatsoever as a result of the insurance
policies and practices of Parent and its Affiliates as in effect at any time
prior to the Redemption Date, including as a result of the level or scope of any
such insurance, the creditworthiness of any insurance carrier, the terms and
conditions of any policy, the adequacy or timeliness of any notice to any
insurance carrier with respect to any claim or potential claim or otherwise.

               (g) Nothing in this Agreement shall be deemed to restrict any
member of the Wireless Group from acquiring at its own expense any other
insurance policy in respect of any Liabilities or covering any period.

               7.2. Certain Post-Distribution Transactions and Related Matters

               (a) Wireless agrees that, until thirty months after the date of
the Distribution, it will (i) maintain its status as a company engaged in the
active conduct of a trade or business and (ii) not engage in any transaction
that would result in it ceasing to be a company engaged in the active conduct of
a trade or business, as defined in Section 355(b) of the Code.

               (b) Wireless further agrees that, until thirty months after the
date of the Distribution, it will not (i) enter into any Proposed Acquisition
Transaction or, to the extent Wireless has the right to prohibit any Proposed
Acquisition Transaction, permit any Proposed

                                      -47-

<PAGE>   53
Acquisition Transaction to occur (whether by (a) redeeming rights under a
stockholders rights plan, (b) finding a tender offer to be a "permitted offer"
under any such plan or otherwise causing any such plan to be inapplicable or
neutralized with respect to any Proposed Acquisition Transaction, or (c)
approving any Proposed Acquisition Transaction, whether for purposes of Section
203 of the DGCL or any similar corporate statute, any "fair price" or other
provision of Wireless' charter or bylaws or otherwise), (ii) liquidate or
partially liquidate, (iii) in a single transaction or series of related
transactions sell or transfer all or substantially all of the assets of the
Wireless Group that were transferred to Wireless prior to the Distribution, (iv)
redeem or otherwise repurchase (directly or through a Wireless Affiliate) any
Wireless stock, (v) enter into any transaction or series of transactions as a
result of which any Person would acquire, or have the right to acquire, from
Wireless or an Affiliate, a number of shares of Wireless stock that would
comprise more than 5% of (A) the value of all outstanding shares of Wireless
stock as of the date of such transaction, or in the case of a series of
transactions, the date of the last transaction of such series, or (B) the voting
power of the issued and outstanding shares of Wireless stock as of the date of
such transaction, or in the case of a series of transactions, the date of the
last transaction of such series or (vi) take any other action or actions
(including any action or transaction that would be reasonably likely to be
inconsistent with any representation made in the Tax Opinions/Rulings) which in
the aggregate (and taking into account any other transactions described in this
subparagraph (b)) would be reasonably likely to have the effect of causing or
permitting one or more persons to acquire directly or indirectly stock
representing a 50 percent or greater interest (within the meaning of Section
355(e) of the Code) in Wireless or otherwise jeopardize the non-recognition of
taxable gain or loss for U.S. federal income tax purposes to Parent, Parent
Affiliates and Parent's stockholders in connection with the Separation
Transactions, unless prior to taking any such action set forth in the foregoing
clauses (i) through (vi), Parent has determined, in its sole and absolute
discretion, which discretion shall be exercised in good faith solely to preserve
the tax-free status of the Separation Transactions, that such action or actions
would not result in (A) the Separation Transactions failing to qualify under the
provisions of Sections 355, 361(c) and 368(a)(1)(D) of the Code or (B) the
Wireless shares failing to qualify as "qualified property" for purposes of
Section 355(c)(2) or 361(c) of the Code by reason of Section 355(e) of the Code
(each of (A) and (B) referred to hereafter as a "Spin-Off Disqualification").
"Proposed Acquisition Transaction" means a transaction or series of transactions
as a result of which Wireless would merge or consolidate with any other person
or pursuant to which any Person or any group of related Persons would acquire,
or have the right to acquire, directly or indirectly, from one or more holders
of outstanding shares of Wireless stock, a number of shares of Wireless stock
that would comprise more than 5% of (A) the value of all outstanding shares of
Wireless stock as of the date of such transaction, or in the case of a series of
transactions, the date of the last transaction of such series, or (B) the voting
power of the

                                      -48-

<PAGE>   54
issued and outstanding shares of Wireless stock as of the date of such
transaction, or in the case of a series of transactions, the date of the last
transaction of such series.

               (c) If Wireless notifies Parent that it desires to take one of
the actions described in clauses (i) through (vi) of Section 7.2(b) (the
"Notified Action") and Parent concludes that such Notified Action would risk
Spin-Off Disqualification, Parent, in its reasonable discretion, shall, at the
request of Wireless, elect to either (i) use all commercially reasonable efforts
to obtain a Subsequent Tax Opinion/Ruling that would permit Wireless to take the
Notified Action, and Wireless shall cooperate in connection with such efforts,
or (ii) provide all reasonable cooperation to Wireless in connection with
Wireless obtaining such a Subsequent Tax Opinion/Ruling; provided, however, that
the reasonable costs and expenses of obtaining any such Subsequent Tax
Opinion/Ruling shall be borne by Wireless. "Subsequent Tax Opinion/Ruling" means
either (i) an unqualified opinion of counsel jointly selected by Parent and
Wireless confirming that, as a consequence of the consummation of the Notified
Action, no income, gain or loss for U.S. federal income tax purposes will be
recognized by Parent, the stockholders or former stockholders of Parent, or any
Parent Affiliate with respect to the Separation Transactions or (ii) an IRS
private letter ruling to the same effect, in each case based on representations
of fact (and not of law) that, after reasonable due diligence conducted by
Parent, are in form and substance reasonably satisfactory to Parent.

               (d) Notwithstanding anything to the contrary herein or any
provision of the Tax Sharing Agreement to the contrary, if there is a
determination (as defined in Section 1313 of the Code) that a Spin-Off
Disqualification has occurred, then Wireless shall indemnify and hold harmless
Parent and each member of the consolidated group of which Parent is a member
from and against any and all Tax Related Losses imposed upon or incurred by
Parent, any member of its group or any stockholder of Parent as a result of the
Spin-Off Disqualification. The obligation of Wireless to indemnify Parent
pursuant to the preceding sentence shall not be affected by the delivery of any
Subsequent Tax Opinion/Ruling unless the Spin-Off Disqualification would not
have occurred but for (i) the failure of any representation made by Parent in
paragraph (f) of this Section or with respect to Parent or the Parent Group's
business, and the plans, proposals, intentions and policies of the Parent (but
excluding any representations with respect to the Wireless Group, its
businesses, plans, proposals intentions and policies or the Parent Wireless
Group Common Stock) after the Separation Transactions in connection with a
Subsequent Tax Opinion/Ruling to be true and correct in all material respects or
(ii) a post-spin-off transaction with respect to the stock or assets of Parent.
In the case of (i) or (ii) in the preceding sentence, Wireless shall have no
obligation to indemnify Parent pursuant to this Section 7.2(d). "Tax-Related
Losses" means (i) all federal, state and local Taxes (including

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<PAGE>   55
interest and penalties thereon) imposed pursuant to any settlement, final
determination, judgment or otherwise; (ii) all accounting, legal and other
professional fees, and court costs incurred in connection with such taxes; and
(iii) all costs and expenses that may result from adverse tax consequences to
Parent or Parent's stockholders (including all costs, expenses and damages
associated with stockholder litigation or controversies) payable by Parent or
Parent Affiliates.

               (e) Wireless hereby represents and warrants that (i) it has
examined the Tax Opinions/Rulings and the Representation Letters, and (ii) the
facts presented and the representations made therein, to the extent descriptive
of Wireless or the Wireless Group or the issuance of the Parent Wireless Group
Common Stock (including, without limitation, the business purposes for the
Separation Transactions and the representations in the Representation Letter and
Tax Opinions/Rulings to the extent that they relate to Wireless or the Wireless
Group or the issuance of the Parent Wireless Group Common Stock, and the plans,
proposals, intentions and policies of Wireless), are true, correct and complete
in all material respects. "Representation Letter" means the representation
letter and any other materials (including, without limitation, the ruling
request and the related supplemental submissions to the IRS) delivered or
deliverable by Parent and others in connection with the rendering by tax counsel
and the issuance by the IRS of the Tax Opinions/Rulings, which to the extent
related to Wireless shall be in form and substance reasonably satisfactory to
Wireless. "Tax Opinions/Rulings" means, collectively, the opinions of tax
counsel and the rulings by the IRS deliverable to Parent in connection with the
transactions contemplated by this Agreement.

               (f) Parent hereby represents and warrants that (i) it has
examined the Tax Opinions/Rulings and the Representation Letter, and (ii) the
facts presented and the representations made therein, to the extent descriptive
of Parent or the Parent Group (including Parent's business purposes for the
Separation Transactions, the representations in the Representation Letter and
Tax Opinions/Rulings to the extent that they relate to Parent or the Parent
Group's business, and the plans, proposals, intentions and policies of the
Parent after the Separation Transactions but excluding any representations with
respect to the Wireless Group, its businesses, plans, proposals intentions and
policies or the Parent Wireless Group Common Stock) are correct and complete in
all material respects.

               7.3. Procedure for Indemnification for Tax Liabilities. (a) If
Parent receives notice of the assertion of any claim, suit, arbitration,
inquiry, proceeding or investigation by or before any court, governmental or
other regulatory or administrative agency or commission or any arbitration
tribunal asserted by a Person other than Parent or any Parent Affiliate or
Wireless or any Wireless Affiliate which gives rise to a right of
indemnification hereunder (a "Third-Party

                                      -50-

<PAGE>   56
Tax Claim") with respect to which Wireless may be obligated under Section 7.2(d)
to provide indemnification, Parent shall give Wireless notice thereof (together
with a copy of such Third-Party Tax Claim, process or other legal pleading)
promptly after becoming aware of such Third-Party Tax Claim; provided, however,
that the failure of Parent to give notice as provided in this Section shall not
relieve Wireless of its obligations under Section 7.2(d), except to the extent
that Wireless is actually prejudiced by such failure to give notice. Such notice
shall describe such Third-Party Tax Claim in reasonable detail.

               (b) (i) Notwithstanding any provision to the contrary contained
in the Tax Sharing Agreement, Parent and Wireless shall jointly control the
defense of, and cooperate with each other with respect to defending, any
Third-Party Tax Claim with respect to which Wireless is obligated under Section
7.2(d) to provide indemnification, provided that Wireless shall forfeit such
joint control right with respect to a particular Third-Party Tax Claim if
Wireless or any Wireless Affiliate makes any public statement or filing, or
takes any action (including, but not limited to, the filing of any submission or
pleading, or the giving of a deposition or production of documents, in any
administrative or court proceeding) in connection with such Third-Party Tax
Claim that is inconsistent in a material respect with any representation or
warranty made by Wireless in the Agreement, the Tax Opinions/Rulings, the
Representation Letter or a Subsequent Tax Opinion/Ruling.

               (ii) Wireless and Parent shall exercise their rights to jointly
control the defense of any such Third-Party Tax Claim solely for the purpose of
defeating such Third-Party Tax Claim and, unless required by applicable law,
neither Wireless nor Parent shall make any statements or take any actions that
could reasonably result in the shifting of liability for any Losses arising out
of such Third-Party Tax Claim from the party making such statement or taking
such action (or any of its Affiliates) to the other party (or any of its
Affiliates).

               (iii) Statements made or actions taken by either Wireless or
Parent in connection with the defense of any such Third-Party Tax Claim shall
not prejudice the rights of such party in any subsequent action or proceeding
between the parties.

               (iv) If either Parent or Wireless fails to jointly defend any
such Third-Party Tax Claim, the other party shall solely defend such Third-Party
Tax Claim and the party failing to jointly defend shall use commercially
reasonable efforts to cooperate with the other party in its defense of such
Third-Party Tax Claim; provided, however, that Parent may not compromise or
settle any such Third-Party Tax Claim without the prior written consent of
Wireless, which consent shall not be unreasonably withheld or delayed. All costs
and expenses of either party in connection with, and during the course of, the
joint control of the defense of any such Third-

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<PAGE>   57
Party Tax Claim shall be initially paid by the party that incurs such costs and
expenses. Such costs and expenses shall be reallocated and reimbursed in
accordance with the respective indemnification obligations of the parties at the
conclusion of the defense of such Third-Party Tax Claim.

               (c) (i) If there is a determination that a Spin-Off
Disqualification has occurred, Parent and Wireless shall attempt in good faith
to resolve any disagreement with respect to whether there is an indemnification
obligation pursuant to Section 7.2(d). If the parties cannot agree by the tenth
business day following the determination (the "Dispute Date"), then the
liability shall initially be determined as follows: Within 20 days of the
Dispute Date, Parent and Wireless shall each appoint one arbitrator. The two
arbitrators so appointed shall appoint a third arbitrator within 30 days of the
Dispute Date. If either party shall fail to appoint an arbitrator within such
20-day period, the arbitration shall be conducted by the sole arbitrator
appointed by the other party. Whether selected by Parent, Wireless or otherwise,
each arbitrator selected to resolve such dispute shall be a tax attorney who is
generally recognized in the tax community as a qualified and competent tax
practitioner with experience in the tax area involved in the issue to be
resolved. Such arbitrators shall be empowered to determine initially whether or
not Wireless is required to indemnify Parent pursuant to Section 7.2(d)
hereunder. Each of Parent and Wireless shall bear 50 percent of the aggregate
expenses of the arbitrators (or sole arbitrator). The decision of the
arbitrators shall be rendered no later than 90 days from the Dispute Date.

               (ii) On the tenth business day following the determination that
there has been a Spin-Off Disqualification, if Wireless agrees that it has an
indemnification obligation, Wireless shall pay in full any amount due and
payable to Parent pursuant to Section 7.2(d), together with interest calculated
at the Underpayment Rate from the date of the determination that there was a
Spin-Off Disqualification through the date of payment. If Wireless and Parent
disagree as to whether an indemnity obligation is due, and the arbitration
process concludes that Wireless is liable, Wireless shall pay any amount that
would be due and payable to Parent if Parent were entitled to indemnity pursuant
to Section 7.2(d), together with interest on such amount calculated at the
Underpayment Rate from the date of the determination that there was a Spin-Off
Disqualification through the date of payment. "Underpayment Rate" shall mean the
annual rate of interest described in Section 6621(c) of the Code for large
corporate underpayments of income Tax (or similar provision of state or local
income Tax law, as applicable), as determined from time to time.

               (iii) If pursuant to a final nonappealable order of a court of
competent jurisdiction, it is determined that Wireless has not paid amounts
payable to Parent pursuant to

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<PAGE>   58
Section 7.2(d) or that amounts paid by Wireless to Parent should not have been
paid, Wireless shall pay to Parent the balance due, or Parent shall repay to the
excess amount paid, in either event within five days of the final determination
of liability or overpayment, together with interest at the Underpayment Rate
calculated (i) from the date of the determination that there was a Spin-Off
Disqualification in the case of a payment to be made by Wireless or (ii) from
the date of payment by Wireless to Parent in the case of a repayment to be made
by Parent. All payments pursuant to this Section 7.3(c) shall be made by wire
transfer to the bank account designated by Parent or Wireless, as the case may
be, for such purpose.

                                  ARTICLE VIII

                    EXCHANGE OF INFORMATION; CONFIDENTIALITY

               8.1. Agreement for Exchange of Information. (a) Each of Parent
and Wireless, on behalf of its respective Group, agrees to use its reasonable
best efforts to provide, or cause to be provided, to the other Group, at any
time before or after the Distribution Date, as soon as reasonably practicable
after written request therefor, any Information in the possession or under the
control of such respective Group which the requesting party reasonably needs (i)
to comply with reporting, disclosure, filing or other requirements imposed on
the requesting party (including under applicable securities or tax laws) by a
Governmental Authority having jurisdiction over the requesting party, (ii) for
use in any other judicial, regulatory, administrative, tax or other proceeding
or in order to satisfy audit, accounting, claims, regulatory, litigation, tax or
other similar requirements, or (iii) to comply with its obligations under this
Agreement or any Ancillary Agreement; provided, however, that in the event that
any party determines that any such provision of Information could be
commercially detrimental, violate any law or agreement, or waive any
attorney-client privilege, the parties shall take all reasonable measures to
permit the compliance with such obligations in a manner that avoids any such
harm or consequence. Parent and Wireless intend that any transfer of Information
that would otherwise be within the attorney-client privilege shall not operate
as a waiver of any potentially applicable privilege.

               (b) After the Distribution Date, each of Parent and Wireless
shall provide, or cause to be provided, to the other party, at no charge to the
other party, all financial and other data and information as the other party
determines necessary or advisable in order to prepare its financial statements
and reports or filings with the Securities Exchange Commission.

               (c) The provisions of this Section 8.1 shall not apply to any
Information to the extent it is based on Information created after the
Distribution Date.

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<PAGE>   59
               8.2. Ownership of Information. Any Information owned by one Group
that is provided to a requesting party pursuant to Section 8.1 shall be deemed
to remain the property of the providing party. Unless specifically set forth
herein, nothing contained in this Agreement shall be construed as granting or
conferring rights of license or otherwise in any such Information.

               8.3. Compensation for Providing Information. The party requesting
such Information agrees to reimburse the other party for the reasonable costs,
if any, of creating, gathering and copying such Information, to the extent that
such costs are incurred for the benefit of the requesting party. Except as may
be otherwise specifically provided elsewhere in this Agreement or in any other
agreement between the parties, such costs shall be computed in accordance with
the providing party's standard methodology and procedures.

               8.4. Record Retention. To facilitate the possible exchange of
Information pursuant to this Article VIII and other provisions of this Agreement
after the Distribution Date, the parties agree to use their reasonable best
efforts to retain all Information in their respective possession or control on
the Distribution Date to the extent such retention is required by the policies
of Parent as in effect on the Distribution Date. In addition, no party will
destroy, or permit any of its Subsidiaries to destroy, any Information which the
other party may have the right to obtain pursuant to this Agreement prior to the
third anniversary of the date hereof without first using its reasonable best
efforts to notify the other party of the proposed destruction and giving the
other party the opportunity to take possession of such information prior to such
destruction; provided, however, that in the case of any Information relating to
Taxes or to Environmental Liabilities, such period shall be extended to the
expiration of the applicable statute of limitations (giving effect to any
extensions thereof).

               8.5. Limitation of Liability. No party shall have any liability
to any other party in the event that any Information exchanged or provided
pursuant to this Agreement which is an estimate or forecast, or which is based
on an estimate or forecast, is found to be inaccurate, in the absence of willful
misconduct by the party providing such Information. No party shall have any
liability to any other party if any Information is destroyed after reasonable
best efforts by such party to comply with the provisions of Section 8.4.

               8.6. Other Agreements Providing for Exchange of Information. The
rights and obligations granted under this Article VIII are subject to any
specific limitations, qualifications or additional provisions on the sharing,
exchange or confidential treatment of Information set forth in any Ancillary
Agreement.

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<PAGE>   60
               8.7. Production of Witnesses; Records; Cooperation. (a) After the
Distribution Date, except in the case of an adversarial Action by one party
against another party (which shall be governed by such discovery rules as may be
applicable thereto), each party hereto shall use its reasonable best efforts to
make available to each other party, upon written request, the former, current
and future directors, officers, employees, other personnel and agents of the
members of its respective Group as witnesses and any books, records or other
documents within its control or which it otherwise has the ability to make
available, to the extent that any such person (giving consideration to business
demands of such directors, officers, employees, other personnel and agents) or
books, records or other documents may reasonably be required in connection with
any Action in which the requesting party may from time to time be involved,
regardless of whether such Action is a matter with respect to which
indemnification may be sought hereunder. The requesting party shall bear all
costs and expenses in connection therewith.

               (b) If an Indemnifying Party chooses to defend or to seek to
compromise or settle any Third Party Claim, each other party shall use its
reasonable best efforts to make available, upon written request, the former,
current and future directors, officers, employees, other personnel and agents of
the members of its respective Group as witnesses and any books, records or other
documents within its control or which it otherwise has the ability to make
available, to the extent that any such person (giving consideration to business
demands of such directors, officers, employees, other personnel and agents) or
books, records or other documents may reasonably be required in connection with
such defense, settlement or compromise, or such prosecution, evaluation or
pursuit, as the case may be, and shall otherwise cooperate in such defense,
settlement or compromise, or such prosecution, evaluation or pursuit, as the
case may be.

               (c) Without limiting the foregoing, the parties shall cooperate
and consult to the extent reasonably necessary with respect to any Actions.

               (d) Without limiting any provision of this Section 8.7, each of
the parties agrees to cooperate, and to cause each member of its respective
Group to cooperate, with each other in the defense of any infringement or
similar claim with respect any intellectual property and shall not claim to
acknowledge, or permit any member of its respective Group to claim to
acknowledge, the validity or infringing use of any intellectual property of a
third Person in a manner that would hamper or undermine the defense of such
infringement or similar claim.

               (e) The obligation of the parties to provide witnesses pursuant
to this Section 8.7 is intended to be interpreted in a manner so as to
facilitate cooperation and shall include the

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<PAGE>   61
obligation to provide as witnesses inventors, directors, officers, employees,
other personnel and agents without regard to whether any such individual could
assert a possible business conflict (subject to the exception set forth in the
first sentence of Section 8.7(a)).

               (f) In connection with any matter contemplated by this Section
8.7, the parties will enter into a mutually acceptable joint defense agreement
as necessary in specific Actions or with regard to specific claims so as to
maintain to the extent practicable any applicable attorney-client privilege or
work product immunity of any member of any Group.

               8.8. Confidentiality. (a) Subject to Section 8.9, each of Parent
and Wireless, on behalf of itself and each member of its respective Group,
agrees to hold, and to cause its respective directors, officers, employees,
agents, accountants, counsel and other advisors and representatives to hold, in
strict confidence, with at least the same degree of care that applies to
Parent's confidential and proprietary information pursuant to policies in effect
as of the Distribution Date, all Information concerning each such other Group
that is either in its possession (including Information in its possession prior
to any of the date hereof, the Redemption Date or the Distribution Date) or
furnished by any such other Group or its respective directors, officers,
employees, agents, accountants, counsel and other advisors and representatives
at any time pursuant to this Agreement, any Ancillary Agreement or otherwise,
and shall not use any such Information other than for such purposes as shall be
expressly permitted hereunder or thereunder, except, in each case, to the extent
that such Information has been (i) in the public domain through no fault of such
party or any member of such Group or any of their respective directors,
officers, employees, agents, accountants, counsel and other advisors and
representatives, (ii) later lawfully acquired from other sources by such party
(or any member of such party's Group) which sources are not themselves bound by
a confidentiality obligation), or (iii) independently generated without
reference to any proprietary or confidential Information of the other party.

               (b) Each party agrees not to release or disclose, or permit to be
released or disclosed, any such Information to any other Person, except its
directors, officers, employees, agents, accountants, counsel and other advisors
and representatives who need to know such Information (who shall be advised of
their obligations hereunder with respect to such Information), except in
compliance with Section 8.9. Without limiting the foregoing, when any
Information is no longer needed for the purposes contemplated by this Agreement
or any Ancillary Agreement, each party will promptly after request of the other
party either return to the other party all Information in a tangible form
(including all copies thereof and all notes, extracts or summaries based
thereon) or certify to the other party that it has destroyed such Information

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<PAGE>   62
(and such copies thereof and such notes, extracts or summaries based thereon)
(except that the parties acknowledge it will not be possible to delete or
destroy certain electronically stored information).

               8.9. Protective Arrangements. In the event that any party or any
member of its Group either determines on the advice of its counsel that it is
required to disclose any Information pursuant to applicable law or receives any
demand under lawful process or from any Governmental Authority to disclose or
provide Information of any other party (or any member of any other party's
Group) that is subject to the confidentiality provisions hereof, such party
shall notify the other party prior to disclosing or providing such Information
and shall cooperate at the expense of the requesting party in seeking any
reasonable protective arrangements requested by such other party. Subject to the
foregoing, the Person that received such request may thereafter disclose or
provide Information to the extent required by such law (as so advised by
counsel) or by lawful process or such Governmental Authority.

                                   ARTICLE IX

                   FURTHER ASSURANCES AND ADDITIONAL COVENANTS

               9.1. Further Assurances. (a) In addition to the actions
specifically provided for elsewhere in this Agreement, each of the parties
hereto shall use its reasonable best efforts on and after the Distribution Date,
to take, or cause to be taken, all actions, and to do, or cause to be done, all
things, reasonably necessary, proper or advisable under applicable laws,
regulations and agreements to consummate and make effective the transactions
contemplated by this Agreement and the Ancillary Agreements. Each party shall
appoint one or more individuals to act as its agent and attorney in fact with
full right and power to execute any instruments necessary to transfer any Asset
allocated to any other Person and shall, on or prior to the Distribution Date,
notify the other parties hereto of the identity of any such individual.

               (b) Without limiting the foregoing, prior to, on and after the
Distribution Date, each party hereto shall cooperate with the other parties, and
without any further consideration, but at the expense of the requesting party,
to execute and deliver, or use its reasonable best efforts to cause to be
executed and delivered, all instruments, including instruments of conveyance,
assignment and transfer, and to make all filings with, and to obtain all
consents, approvals or authorizations of, any Governmental Authority or any
other Person under any permit, license, agreement, indenture or other instrument
(including any Consents or Governmental Approvals), and to take all such other
actions as such party may reasonably be requested to take by any other party
hereto from time to time, consistent with the terms of this

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<PAGE>   63
Agreement and the Ancillary Agreements, in order to effectuate the provisions
and purposes of this Agreement and the Ancillary Agreements and the transfers of
the Additional Wireless Assets and the Wireless Common Stock and the assignment
and assumption of the Additional Wireless Liabilities and the other transactions
contemplated hereby and thereby. Without limiting the foregoing, each party
will, at the reasonable request, cost and expense of any other party, take such
other actions as may be reasonably necessary to vest in such other party good
and marketable title, free and clear of any Security Interest, if and to the
extent it is practicable to do so. Notwithstanding the foregoing or anything in
this Agreement or any Ancillary Agreement to the contrary, no member of either
Group shall be required to make any payment, incur or become subject to any
Liability, agree to any restriction, surrender any right or Asset or otherwise
enter into any agreement, or be required to permit to occur any event, that
would be adverse to it in order to obtain any such Consent or Governmental
Approval.

               (c) On or prior to the Redemption Date, Parent and Wireless in
their respective capacities as direct and indirect stockholders of their
respective Subsidiaries, shall each ratify any actions which are reasonably
necessary or desirable to be taken by Parent and Wireless, or any other
Subsidiary of Parent, as the case may be, to effectuate the transactions
contemplated by this Agreement.

               (d) Parent and Wireless, and each of the members of their
respective Groups, waive (and agree not to assert against the other) any claim
or demand that any of them may have against the other for any Liabilities or
other claims relating to or arising out of: (i) the failure of Wireless or any
member of the Wireless Group, on the one hand, or of Parent or any member of the
Parent Group, on the other hand, to provide any notification or disclosure
required under any state Environmental Law in connection with the Separation or
the other transactions contemplated by this Agreement, including the transfer by
any member of any Group to any member of any other Group of ownership or
operational control of any Assets not previously owned or operated by such
transferee; or (ii) any inadequate, incorrect or incomplete notification or
disclosure under any such state Environmental Law by the applicable transferor.
To the extent any Liability to any Governmental Authority or any third Person
arises out of any action or inaction described in clause (i) or (ii) above, the
transferee of the applicable Asset hereby assumes and agrees to pay any such
Liability.

               9.2. Parent Restructuring. Wireless recognizes and agrees, for
itself and on behalf of the members of the Wireless Group, that the Parent Group
contemplates a Restructuring (as defined below) in a series of transactions.
Except as may expressly be provided in any Ancillary Agreement, in connection
with the Restructuring or any part thereof,

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<PAGE>   64
notwithstanding anything herein to the contrary, Parent shall be entitled to
assign all or a portion of its rights and obligations under this Agreement or
any Ancillary Agreement to any other entity resulting from the Restructuring or
any part thereof, provided that at the time of such assignment Parent reasonably
determines that the assignee is operationally and financially capable of
performing the assigned obligations. In each case, the applicable entity or
entities will assume the related obligations set forth in this Agreement or such
Ancillary Agreement, as applicable. In the case of any of the foregoing,
effective upon any such assumption, and without any further action required by
the parties hereto, Parent and the applicable members of the Parent Group shall
automatically be fully released and discharged with respect to the assigned
obligations. Parent will give Wireless written notice of the terms of any
assignment pursuant to this Section at least 10 days prior to the effectiveness
thereof. For purposes hereof, the term "Restructuring" shall mean the various
restructuring plans announced by Parent on October 25, 2000 and thereafter, and
any amendments, modifications or adjustments thereto, whereby generally Parent
would split-off the AT&T Wireless Group from Parent, distribute all the common
stock it holds in Liberty Media Corporation in exchange for all the outstanding
shares of Liberty Media Group tracking stock; fully separate, or issue separate
tracking stocks intended to reflect the financial performance and economic value
of, each of Parent's other major units: AT&T Broadband, AT&T Business Services
and AT&T Consumer Services; and engage in a number of related activities in
connection therewith, including any potential combinations with one or more
third parties involving any of the entities resulting from the foregoing (which
shall be deemed entities resulting from the Restructuring for purposes hereof)
and including any of the deleveraging activities such as the disposition of
AT&T's ownership interests in various cable properties and investments. In the
event that either Parent or Wireless desires to make any other assignment of all
or any portion of its obligations (or the obligations of any member of its
Group) under this Agreement or any Ancillary Agreement, neither party may do so
without the consent of the other, such consent not to be unreasonably withheld.
In any such event, effective upon any such assumption, and without any further
action required by the parties hereto, the applicable assignor and the
applicable members of its Group shall automatically be fully released and
discharged with respect to the assigned obligations.

               9.3. Patent License Agreements. Except as prohibited by any
patent license agreement, Parent will provide to the Wireless Group, prior to
the Redemption Date, complete copies of all patent license agreements between
Parent and a third party (and, if applicable, any other Person) entered into and
in effect prior to the Redemption Date which patent license agreements are in
the possession or control of, and known to, the Parent intellectual property law
group and which (a) grant rights, or covenants not to sue, under any patents
which are either owned by the Wireless Group or which will be assigned to the
Wireless Group under an

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<PAGE>   65
Ancillary Agreement or (b) create Liabilities which result from activities,
operation, or business of the Wireless Group, as conducted any time prior to, on
or after the Redemption Date; provided that, such copies are deemed Parent
Proprietary Information under the Intellectual Property Agreement and, for each
such copy so-provided, the Wireless Group agrees to abide by the stricter of (i)
any confidentiality obligations imposed on Parent by such patent license
agreement and (ii) the confidentiality obligations imposed on Parent Proprietary
Information by the Intellectual Property Agreement. Parent will construe the
provisions of such patent license agreements which concern whether Parent can
provide copies of such patent license agreements to the Wireless Group as
reasonably favorable to the Wireless Group's receiving such copies as the terms
of the patent license agreements will allow, as judged by Parent in its
discretion exercised in good faith, without Parent having to assume liability or
causing a breach of contract. In construing such provisions, Parent shall deem
Wireless a wholly owned subsidiary of Parent prior to the Redemption Date.

                                   ARTICLE X

                                   TERMINATION

               10.1. Termination. This Agreement may be terminated at any time
prior to the Distribution Date by Parent in its sole discretion.

               10.2. Effect of Termination. In the event of any termination of
this Agreement, no party to this Agreement (or any of its directors or officers)
shall have any Liability or further obligation to any other party as a result
hereof.

                                   ARTICLE XI

                           DISPUTE RESOLUTION AND ARBITRATION

               11.1. Agreement to Arbitrate. Except as otherwise specifically
provided in this Agreement (including, without limitation, in Article VII,
concerning Third Party Tax Claims) or in any Ancillary Agreement, the procedures
set forth in this Article XI shall apply to all disputes, controversies or
claims (whether sounding in contract, tort or otherwise) that may arise out of
or relate to, or arise under or in connection with this Agreement or any
Ancillary Agreement, or the

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<PAGE>   66
transactions contemplated hereby or thereby (including all actions taken in
furtherance of the transactions contemplated hereby or thereby on or prior to
the date hereof), or the commercial or economic relationship of the parties
relating hereto or thereto, between or among any member of the Parent Group, or
the Wireless Group. Each party agrees on behalf of itself and each member of its
respective Group that the procedures set forth in this Article XI shall be the
sole and exclusive remedy in connection with any dispute, controversy or claim
relating to any of the foregoing matters and irrevocably waives any right to
commence any Action in or before any Governmental Authority, except as expressly
provided in Sections 11.11(c) and 11.12 and except to the extent provided under
the Arbitration Act in the case of judicial review of arbitration results or
awards. Each party on behalf of itself and each member of its respective Group
irrevocably waives any right to any trial by jury with respect to any claim,
controversy or dispute set forth in the first sentence of this Section 11.1. The
parties agree that claims filed pursuant to this Arbitration provision may seek
direct damages but in no event for such claims shall either party be liable to
the other for any incidental, special, reliance, consequential or any other
indirect damages or losses (including lost profits or revenues).

               11.2. Best Efforts to Resolve Disputes; Mediation. It is the
intent of the parties to use their respective reasonable best efforts to
negotiate and resolve expeditiously any dispute, controversy or claim between or
among them that may arise from time to time on a mutually acceptable negotiated
basis. The parties may, by mutual consent, retain a mediator to aid in any
attempt to informally negotiate resolution of any dispute, although any opinion
expressed by a mediator shall be strictly advisory and shall not be binding on
the parties, nor shall any opinion expressed by the mediator be admissible in
any arbitration proceedings. Costs of a mediation shall be borne equally by the
parties involved in the matter, except that each party shall be responsible for
its own expenses. Mediation is not a prerequisite to a demand for arbitration
under Section 11.3.

               11.3. Demand for Arbitration. At any time before the Applicable
Deadline (as defined below), any party involved in the dispute, controversy or
claim may make a written demand (the "Arbitration Demand Notice") that the
dispute be resolved by binding arbitration, which Arbitration Demand Notice
shall be given to the parties to the dispute, controversy or claim in the manner
set forth in Section 12.5. Except as may be expressly provided in any Ancillary
Agreement, any Arbitration Demand Notice must be asserted within one year after
the later of the occurrence of the act or event giving rise to the underlying
claim or the date on which such act or event was, or should have been, in the
exercise of reasonable due diligence, discovered by the party asserting the
claim (as applicable and as it may in a particular case be specifically extended
by the parties in writing, the "Applicable Deadline"). Any discussions,

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<PAGE>   67
negotiations or mediations between the parties pursuant to this Agreement or
otherwise will not toll the Applicable Deadline unless expressly agreed in
writing by the parties. Each of the parties agrees on behalf of itself and each
member of its Group that if an Arbitration Demand Notice with respect to a
dispute, controversy or claim is not given prior to the expiration of the
Applicable Deadline, as between or among the parties and the members of their
Groups, such dispute, controversy or claim will be barred. Subject to Sections
11.11(c) and 11.12, upon delivery of an Arbitration Demand Notice prior to the
Applicable Deadline, the dispute, controversy or claim shall be decided by an
Arbitration Panel in accordance with the rules set forth in this Article XI.

               11.4. Arbitration Panel. When an Arbitration Demand Notice is
given, the parties involved in the dispute, controversy or claim shall attempt
to select a sole arbitrator satisfactory to all such parties. In the event the
parties are not able jointly to select a sole arbitrator, such parties shall
each appoint an arbitrator within 30 days after delivery of the Arbitration
Demand Notice. Only one arbitrator may be appointed for the Wireless Group and
the Parent Group, respectively. In the event that a sole arbitrator is not
selected, the two chosen arbitrators, within 30 days after the appointment of
the later of them to be appointed, will in turn choose a third arbitrator, and
the three arbitrators thus chosen will constitute the arbitration panel.

               11.5. Commencement and Place of Arbitration. The sole arbitrator
or arbitration panel (as applicable, the "Arbitration Panel") will meet within
thirty (30) days of the last appointment to commence the arbitration, which
period may be extended upon the agreement of the arbitrators. The Arbitration
Panel will set a time for the hearing of the matter which will commence no later
than 90 days after the date of the last appointment. The place of any
arbitration hereunder will be as agreed upon by the parties, or, if the parties
are unable to agree, as set by the Arbitration Panel.

               11.6. Arbitration Hearings. The matter shall be presented to the
arbitrator at a hearing by means of written submissions of memoranda and
verified witness statements, filed simultaneously, and responses, if necessary
in the judgment of the arbitrator or both the parties. If the Arbitration Panel
deems it to be appropriate for a fair resolution of the dispute, live
cross-examination or direct examination may be permitted. The Arbitration Panel
shall actively manage the arbitration with a view to achieving a just, speedy
and cost-effective resolution of the dispute, claim or controversy. The
arbitration hearing will be no longer than 30 full hearing days, unless in the
judgment of the Arbitration Panel the matter is complex and sophisticated and
thereby requires a longer time. The Arbitration Panel may set time and other
limits on the

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<PAGE>   68
presentation of each party's case, its memoranda or other submissions, and may
refuse to receive any proffered evidence, which the Arbitration Panel find to be
cumulative, unnecessary, irrelevant or of low probative nature. Except as
otherwise set forth herein, any arbitration hereunder will be conducted in
accordance with the CPR Rules for Non-Administered Arbitration of Business
Disputes then prevailing (except that the arbitration will not be conducted
under the auspices of the CPR and the fee schedule of the CPR will not apply).
To the extent that the provisions of this Agreement and the prevailing rules of
the CPR conflict, the provisions of this Agreement shall govern.

               11.7. Arbitration Decision. The final decision of the Arbitration
Panel will be rendered in writing to the parties not later than 60 days after
the last hearing date, unless otherwise agreed by the parties in writing. The
decision of the Arbitration Panel will be final and binding on the parties, and
judgment thereon may be had and will be enforceable in any court having
jurisdiction over the parties. Arbitration awards will bear interest at an
annual rate of the Prime Rate plus 2% per annum.

               11.8. Discovery and Related Matters. Any party involved in the
applicable dispute may request limited document production from the other party
or parties of specific and expressly relevant documents. Any such discovery
shall be conducted expeditiously, and it is intended that discovery shall be
limited as compared to the provisions of the Federal Rules of Civil Procedure.
Depositions shall not occur except by consent of the parties or by order of the
Arbitration Panel. Disputes concerning the document production or other
discovery will be determined by written agreement of the parties involved in the
applicable dispute or, failing such agreement, will be referred to the
Arbitration Panel for resolution. All discovery requests will be subject to the
proprietary rights and rights of privilege of the parties, and the Arbitration
Panel will adopt procedures to protect such rights and to maintain the
confidential treatment of the arbitration proceedings (except as may be required
by law). Subject to the foregoing, the Arbitration Panel shall have the power to
issue subpoenas to compel the production of documents relevant to the dispute,
controversy or claim.

               11.9. Arbitration Panel's Authority. The Arbitration Panel shall
have full power and authority to determine issues of arbitrability and to
interpret or construe the applicable provisions of this Agreement or any
Ancillary Agreement and to fashion appropriate remedies for breaches of this
Agreement (including interim or permanent injunctive relief); provided that the
Arbitration Panel shall not have any right or authority (i) in excess of the
authority a court having jurisdiction over the parties and the controversy or
dispute would have absent these arbitration provisions; (ii) to award
incidental, special, reliance, consequential, or other indirect

                                      -63-

<PAGE>   69
damages (including lost profits or revenues);(iii) to award punitive or treble
damages; or (iv) to modify the terms of this Agreement . It is the intention of
the parties that in rendering a decision the Arbitration Panel give effect to
the applicable provisions of this Agreement and the Ancillary Agreements and
follow applicable law (it being understood and agreed that this sentence shall
not give rise to a right of judicial review of the arbitrator's award).

               11.10. Confidentiality. Except as required by law, the parties
agree that the existence and contents of the entire Arbitration, including the
award, shall be deemed a compromise of a dispute under Rule 408 of the Federal
Rules of Evidence, shall not be discoverable in any proceeding, shall not be
admissible in any court (except for the enforcement thereof) or arbitration and
shall not bind or collaterally estop either party with respect to any claim or
defense asserted by any third party. Except as required by law, the parties
shall hold, and shall cause their respective officers, directors, employees,
agents and other representatives to hold, the existence, content and result of
the arbitration or any mediation in confidence in accordance with the provisions
of Article VIII and except as may be required in order to enforce any award.
Each of the parties shall request that any mediator or arbitrator comply with
such confidentiality requirement.

               11.11. Certain Additional Matters. (a) If a party fails or
refuses to appear at and participate in an arbitration hearing after due notice,
the arbitrator may hear and determine the controversy upon evidence produced by
the appearing party.

               (b) Arbitration costs will be borne equally by each party
involved in the matter, except that each party will be responsible for its own
attorney's fees and other costs and expenses, including the costs of witnesses
selected by such party.

               (c) Prior to the time at which the Arbitration Panel are
appointed, any party may seek one or more temporary restraining orders in a
court of competent jurisdiction if necessary in order to preserve and protect
the status quo. Neither the request for, or grant or denial of, any such
temporary restraining order shall be deemed a waiver of the obligation to
arbitrate as set forth herein and the Arbitration Panel may dissolve, continue
or modify any such order.

               (d) In the event that at any time any member of the Arbitration
Panel shall fail to serve as an arbitrator for any reason, the appropriate party
or the two party-selected arbitrators, as the case may be, shall select a new
arbitrator, in accordance with the procedures set forth in Section 11.4. The
extent, if any, to which testimony previously given shall be repeated or may be
relied upon based on the stenographic record (if there is one), shall be
determined by the replacement arbitrator.

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<PAGE>   70
               11.12. Limited Court Actions. (a) Notwithstanding anything herein
to the contrary, in the event that any party reasonably determines the amount in
controversy in any dispute, controversy or claim (or any series of related
disputes, controversies or claims) under this Agreement or any Ancillary
Agreement is, or is reasonably likely to be, in excess of $100 million and if
such party desires to commence an Action in lieu of complying with the
arbitration provisions of this Article, such party shall so state in its
Arbitration Demand Notice. If the other parties to the arbitration disagree
about whether the amount in controversy exceeds $100 million, the Arbitration
Panel selected pursuant to Section 11.4 shall decide the issue. The Arbitration
Panel shall set a date no later than ten days after the date of its appointment
for submissions by the parties with respect to such issue. There shall be no
discovery in connection with such issue. The Arbitration Panel shall render its
decision on such issue within five days of such date so set by the Arbitration
Panel. In the event that the Arbitration Panel determines that the amount in
controversy is or is reasonably likely to be in excess of $100 million, the
provisions of Sections 11.5, 11.6, 11.7, 11.8, and 11.14 shall not apply, and
within 15 days of such decision, any party to the arbitration may elect in lieu
of arbitration, to commence an Action with respect to such dispute, controversy
or claim (or such series of related disputes, controversies or claims) in any
court of competent jurisdiction. If the Arbitration Panel does determines that
the amount in controversy is not in excess of $100 million, the provisions of
this Article (including with respect to time periods) shall apply as if no
determinations were sought or made pursuant to this Section 11.12(a).

               (b) In the event that an arbitration award in excess of $100
million is issued in any arbitration proceeding commenced hereunder, any party
may, within 60 days after the date of such award, submit the dispute,
controversy or claim (or series of related disputes, controversies or claims)
giving rise thereto to a court of competent jurisdiction, regardless of whether
such party or any other party sought to commence an Action in lieu of proceeding
with arbitration in accordance with Section 11.12(a). In such event, the
applicable court may elect to rely on the record developed in the arbitration
or, if it determines that it would be advisable in connection with the matter,
allow the parties to seek additional discovery or to present additional
evidence. Each party shall be entitled to present arguments to the court with
respect to whether any such additional discovery or evidence shall be permitted
and with respect to all other matters relating to the applicable dispute,
controversy or claim (or series of related disputes, controversies or claims).

               11.13. Continuity of Performance and Remaining Obligations.
Unless otherwise agreed in writing, the parties will continue to provide service
and honor all other commitments under this Agreement and each Ancillary
Agreement during the course of dispute resolution

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<PAGE>   71
pursuant to the provisions of this Article IX with respect to all matters not
subject to such dispute, controversy or claim.

               11.14. Law Governing Arbitration Procedures. The interpretation
of the provisions of this Article XI, only insofar as they relate to the
agreement to arbitrate and any procedures pursuant thereto, shall be governed by
the Arbitration Act and other applicable federal law. In all other respects, the
interpretation of this Agreement shall be governed as set forth in Section 12.2.

               11.15. Non-applicability of Article. Notwithstanding anything
herein to the contrary, this Article XI shall not apply to any dispute,
controversy or claim or to any other matter whatsoever arising under Section 7.2
or 7.3 hereof, the Tax Sharing Agreement, any other tax sharing agreement or any
Third Party Tax Claims or to any other matter relating to Taxes. This Article
similarly shall not apply to the extent provided in any other Ancillary
Agreement.

                                  ARTICLE XII

                                  MISCELLANEOUS

               12.1. Counterparts; Entire Agreement; Corporate Power. (a) This
Agreement and each Ancillary Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more counterparts have been signed by each of
the parties hereto or thereto and delivered to each other party hereto or
thereto.

               (b) This Agreement, and the Ancillary Agreements and the
Exhibits, Schedules and Appendices hereto and thereto contain the entire
agreement between the parties with respect to the subject matter hereof or
thereof, supersede all previous agreements, negotiations, discussions, writings,
understandings, commitments and conversations with respect to such subject
matter and there are no agreements or understandings between the parties other
than those set forth or referred to herein or therein.

               (c) Parent represents on behalf of itself and each other member
of the Parent Group and Wireless represents on behalf of itself and each other
member of the Wireless Group as follows:

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<PAGE>   72
                              (i) each such Person has the requisite corporate
               or other power and authority and has taken all corporate or other
               action necessary in order to execute, deliver and perform each of
               this Agreement and each other Ancillary Agreements to which it is
               a party and to consummate the transactions contemplated hereby
               and thereby; and

                              (ii) this Agreement and each Ancillary Agreement
               to which it is a party has been duly executed and delivered by it
               and constitutes a valid and binding agreement of it enforceable
               in accordance with the terms thereof.

               (d) Each party hereto acknowledges that it and each other party
hereto is executing certain of the Ancillary Agreements by facsimile, stamp or
mechanical signature. Each party hereto expressly adopts and confirms each such
facsimile, stamp or mechanical signature made in its respective name as if it
were a manual signature, agrees that it will not assert that any such signature
is not adequate to bind such party to the same extent as if it were signed
manually and agrees that at the reasonable request of any other party hereto at
any time it will as promptly as reasonably practicable cause each such Ancillary
Agreement to be manually executed (any such execution to be as of the date of
the initial date thereof).

               (e) Notwithstanding any provision of this Agreement or any
Ancillary Agreement, neither Parent nor Wireless, and no member of their
respective Groups, shall be required to take or omit to take any act that would
violate its fiduciary duties to any minority or other stockholders of any other
non-wholly owned Subsidiary or Affiliate of Parent or Wireless, as the case may
be (it being understood that directors' qualifying shares or similar interests
will be disregarded for purposes of determining whether a Subsidiary is wholly
owned).

               12.2. Governing Law. This Agreement and, unless expressly
provided therein, each Ancillary Agreement, shall be governed by and construed
and interpreted in accordance with the laws of the State of New York,
irrespective of the choice of laws principles of the State of New York, as to
all matters, including matters of validity, construction, effect,
enforceability, performance and remedies.

               12.3. Assignability. Except as set forth in any Ancillary
Agreement, this Agreement and each Ancillary Agreement shall be binding upon and
inure to the benefit of the parties hereto and thereto, respectively, and their
respective successors and assigns; provided, however, that, except as set forth
in this Agreement (including Section 9.2) or in any Ancillary Agreement, no
party hereto or thereto may assign its respective rights or delegate its
respective obligations under this Agreement or any Ancillary Agreement without
the express prior written consent of each of the other parties hereto or
thereto.

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<PAGE>   73
               12.4. Third Party Beneficiaries. Except for the indemnification
rights under this Agreement of any Parent Indemnitee or any Wireless Indemnitee
in their respective capacities as such, (a) the provisions of this Agreement and
each Ancillary Agreement are solely for the benefit of the parties hereto and
are not intended to confer upon any Person except the parties any rights or
remedies hereunder, and (b) there are no third party beneficiaries of this
Agreement or any Ancillary Agreement and neither this Agreement nor any
Ancillary Agreement shall provide any third person (including any insurance
company) with any remedy, claim, liability, reimbursement, claim of action or
other right in excess of those existing without reference to this Agreement or
any Ancillary Agreement.

               12.5. Notices. All notices or other communications under this
Agreement or any Ancillary Agreement shall be in writing and shall be deemed to
be duly given as of the date delivered, mailed or transmitted, and shall be
effective upon receipt, if delivered personally, mailed by registered or
certified mail (postage prepaid, return receipt requested) or delivered by a
nationally recognized courier service to the parties at the following address or
sent by electronic transmission to the telecopier numbers specified below:

                  If to Parent, to:              AT&T Corp.
                                                 295 North Maple Drive
                                                 Basking Ridge, NJ  07920
                                                 Attn:  Vice President-Law and
                                                 Corporate Secretary
                                                 Telecopier: 908-221-4408

                  If to Wireless to:             AT&T Wireless Services, Inc.
                                                 7277 164th NE
                                                 Redmond, WA 98052
                                                 Attn:  General Counsel
                                                 Telecopier: 425-580-8333

Any party may, by notice to the other parties, change the address to which such
notices are to be given.

               12.6. Severability. If any provision of this Agreement or any
Ancillary Agreement or the application thereof to any Person or circumstance is
determined by a court of

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<PAGE>   74
competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof or thereof, or the application of such provision to Persons or
circumstances or in jurisdictions other than those as to which it has been held
invalid or unenforceable, shall remain in full force and effect and shall in no
way be affected, impaired or invalidated thereby, so long as the economic or
legal substance of the transactions contemplated hereby or thereby, as the case
may be, is not affected in any manner adverse to any party. Upon such
determination, the parties shall negotiate in good faith in an effort to agree
upon such a suitable and equitable provision to effect the original intent of
the parties.

               12.7. Force Majeure. No party shall be deemed in default of this
Agreement or any Ancillary Agreement to the extent that any delay or failure in
the performance of its obligations under this Agreement or any Ancillary
Agreement results from any cause beyond its reasonable control and without its
fault or negligence, such as acts of God, acts of civil or military authority,
embargoes, epidemics, war, riots, insurrections, fires, explosions, earthquakes,
floods, unusually severe weather conditions, labor problems or unavailability of
parts, or, in the case of computer systems, any failure in electrical or air
conditioning equipment. In the event of any such excused delay, the time for
performance shall be extended for a period equal to the time lost by reason of
the delay.

               12.8. Expenses. Except as expressly set forth in this Agreement
or in any Ancillary Agreement, whether or not the Separation, the Mandatory
Exchange or the Distribution are consummated, all third party fees, costs and
expenses paid or incurred in connection with the Separation Transactions will be
paid by Parent.

               12.9. Late Payments. Except as expressly provided to the contrary
in this Agreement or in any Ancillary Agreement, any amount not paid when due
pursuant to this Agreement or any Ancillary Agreement (and any amounts billed or
otherwise invoiced or demanded and properly payable that are not paid within 30
days of such bill, invoice or other demand) shall accrue interest at a rate per
annum equal to the Prime Rate plus 2%.

               12.10. Headings. The article, section and paragraph headings
contained in this Agreement and in the Ancillary Agreements are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement or any Ancillary Agreement.

               12.11. Survival of Covenants. Except as expressly set forth in
any Ancillary Agreement, the covenants, representations and warranties contained
in this Agreement and each Ancillary Agreement, and liability for the breach of
any obligations contained herein, shall survive each of the Separation, the
Mandatory Exchange and the Distribution.

                                      -69-

<PAGE>   75
               12.12. Waivers of Default. Waiver by any party of any default by
any other party of any provision of this Agreement or any Ancillary Agreement
shall not be deemed a waiver by the waiving party of any subsequent or other
default, nor shall it prejudice the rights of the other party.

               12.13. Specific Performance. In the event of any actual or
threatened default in, or breach of, any of the terms, conditions and provisions
of this Agreement or any Ancillary Agreement, the party or parties who are or
are to be thereby aggrieved shall have the right to specific performance and
injunctive or other equitable relief of its or their rights under this Agreement
or such Ancillary Agreement, in addition to any and all other rights and
remedies at law or in equity, and all such rights and remedies shall be
cumulative. The parties agree that the remedies at law for any breach or
threatened breach, including monetary damages, are inadequate compensation for
any loss and that any defense in any action for specific performance that a
remedy at law would be adequate is waived. Any requirements for the securing or
posting of any bond with such remedy are waived.

               12.14. Amendments. No provisions of this Agreement or any
Ancillary Agreement shall be deemed waived, amended, supplemented or modified by
any party, unless such waiver, amendment, supplement or modification is in
writing and signed by the authorized representative of the party against whom
such waiver, amendment, supplement or modification is sought to be enforced.

               12.15. Interpretation. In the event of a conflict between a
provision of this Agreement and any provision of any Ancillary Agreement, any
specific provision of the applicable Ancillary Agreement shall control. Words in
the singular shall be held to include the plural and vice versa and words of one
gender shall be held to include the other gender as the context requires. The
terms "hereof," "herein," and "herewith" and words of similar import shall,
unless otherwise stated, be construed to refer to this Agreement (or the
applicable Ancillary Agreement) taken as a whole (including all of the
Schedules, Exhibits and Appendices hereto and thereto) and not to any particular
provision of this Agreement (or such Ancillary Agreement). Article, Section,
Exhibit, Schedule and Appendix references are to the Articles, Sections,
Exhibits, Schedules and Appendices to this Agreement (or the applicable
Ancillary Agreement) unless otherwise specified. The word "including" and words
of similar import when used in this Agreement (or the applicable Ancillary
Agreement) shall mean "including, without limitation," unless the context
otherwise requires or unless otherwise specified. The word "or" shall not be
exclusive. Unless expressly stated to the contrary in this Agreement or in any
Ancillary Agreement, all references to "the date hereof," "the date of this
Agreement," "hereby"

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<PAGE>   76
and "hereupon" and words of similar import shall all be references to the
Redemption Date, regardless of any amendment or restatement hereof.

               12.16. Effectiveness. None of this Agreement or any Ancillary
Agreement shall become effective until the Redemption Date (which shall be
deemed to be the date hereof or thereof for all purposes). In the event that the
Redemption Date shall not occur on or prior to September 30, 2001, this
Agreement and each Ancillary Agreement shall automatically be void and of no
further force or effect.

                                      -71-
<PAGE>   77
               IN WITNESS WHEREOF, the parties have caused this Separation and
Distribution Agreement to be executed by their duly authorized representatives.

                                   AT&T CORP.

                                   By:    __________________________
                                          Name:
                                          Title:

                                   AT&T WIRELESS SERVICES, INC.

                                   By:    __________________________
                                          Name:
                                          Title:

                                      -72-

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