Document:

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                                                                  EXHIBIT 10.11

                          REGISTRATION RIGHTS AGREEMENT

                               Dated March 1, 2001

                                     between

                          AT&T WIRELESS SERVICES, INC.,

                                   AT&T CORP.

                                       and

                             THE INITIAL PURCHASERS

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                          REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") is made and entered
into on March 1, 2001, between AT&T Wireless Services, Inc., a Delaware
corporation (the "COMPANY"), AT&T Corp., a New York corporation ("AT&T") and
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Salomon Smith Barney Inc.
and the several Persons (as defined below) listed on Schedule I hereto (each, an
"INITIAL PURCHASER" and collectively, the "INITIAL PURCHASERS").

     This Agreement is made pursuant to the Purchase Agreement dated March 1,
2001, between the Company, AT&T and the Initial Purchasers (the "PURCHASE
AGREEMENT"), which provides for the sale by the Company to the Initial
Purchasers of an aggregate of $1,000,000,000 principal amount of the Company's
7.350% Senior Notes Due 2006, $3,000,000,000 principal amount of the Company's
7.875% Senior Notes Due 2011 and $2,500,000,000 principal amount of the
Company's 8.750% Senior Notes Due 2031 (the "SECURITIES"). In order to induce
the Initial Purchasers to enter into the Purchase Agreement, the Company has
agreed to provide to the Initial Purchasers and their direct and indirect
transferees the registration rights set forth in this Agreement. The execution
of this Agreement is a condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1. Definitions

     As used in this Agreement, the following capitalized defined terms shall
have the following meanings:

     "1933 ACT" shall mean the Securities Act of 1933, as amended from time to
time.

     "1934 ACT" shall mean the Securities Exchange Act of 1934, as amended from
time to time.

     "CLOSING DATE" shall mean the date of the closing as described in the
Purchase Agreement.

     "COMPANY" shall have the meaning set forth in the preamble and shall also
include the Company's successors.

     "EXCHANGE OFFER" shall mean the exchange offer by the Company of Exchange
Securities for Registrable Securities pursuant to Section 2(a) hereof.

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     "EXCHANGE OFFER REGISTRATION" shall mean a registration under the 1933 Act
effected pursuant to Section 2(a) hereof.

     "EXCHANGE OFFER REGISTRATION STATEMENT" shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form) and all amendments and supplements to such registration statement, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

     "EXCHANGE SECURITIES" shall mean securities issued by the Company under the
Indenture containing terms identical to the Securities (except that (i) interest
thereon shall accrue from the last date on which interest was paid on the
Securities or, if no such interest has been paid, from March 1, 2001 and (ii)
the Exchange Securities will not contain restrictions on transfer) and to be
offered to Holders of Securities in exchange for Securities pursuant to the
Exchange Offer.

     "HOLDER" shall mean the Initial Purchasers, for so long as they own any
Registrable Securities, and each of their successors, assigns and direct and
indirect transferees who become registered owners of Registrable Securities
under the Indenture; provided that for purposes of Sections 4 and 5 of this
Agreement, the term "HOLDER" shall include Participating Broker-Dealers (as
defined in Section 4(a)).

     "INDENTURE" shall mean the Indenture relating to the Securities dated as of
or around the date hereof between the Company and The Bank of New York, as
trustee, and as the same may be amended from time to time in accordance with the
terms thereof.

     "INITIAL PURCHASERS" shall have the meaning set forth in the preamble.

     "ISSUE DATE" shall mean the date that the Securities are originally issued
by the Company.

     "MAJORITY HOLDERS" shall mean the Holders of a majority of the aggregate
principal amount of outstanding Registrable Securities; provided that whenever
the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
any of its affiliates (as such term is defined in Rule 405 under the 1933 Act)
(other than the Initial Purchasers or subsequent Holders of Registrable
Securities if such subsequent holders are deemed to be such affiliates solely by
reason of their holding of such Registrable Securities) shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage or amount.

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     "OFFERING MEMORANDUM" shall mean the final offering memorandum dated as of
or around the date hereof prepared by the Company in connection with the
Securities.

     "PERSON" shall mean an individual, partnership, limited liability company,
corporation, trust or unincorporated organization, or a government or agency or
political subdivision thereof.

     "PROSPECTUS" shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to such prospectus, and in each case including
all material incorporated by reference therein.

     "PURCHASE AGREEMENT" shall have the meaning set forth in the preamble.

     "REGISTRABLE SECURITIES" shall mean the Securities; provided, however, that
the Securities shall cease to be Registrable Securities (i) when a Registration
Statement with respect to such Securities shall have been declared effective
under the 1933 Act and such Securities shall have been disposed of pursuant to
such Registration Statement, (ii) when such Securities have been sold to the
public pursuant to Rule 144(k) (or any similar provision then in force, but not
Rule 144A) under the 1933 Act or (iii) when such Securities shall have ceased to
be outstanding.

     "REGISTRATION EXPENSES" shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement, including
without limitation: (i) all SEC, stock exchange or National Association of
Securities Dealers, Inc. registration and filing fees, (ii) all fees and
expenses incurred in connection with compliance with state securities or blue
sky laws (including reasonable fees and disbursements of counsel for any
underwriters or Holders in connection with blue sky qualification of any of the
Exchange Securities or Registrable Securities), (iii) all expenses of any
Persons in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements
and other documents relating to the performance of and compliance with this
Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating
to the qualification of the Indenture under applicable securities laws, (vi) the
fees and disbursements of the Trustee and its counsel, (vii) the fees and
disbursements of counsel for the Company and, in the case of a Shelf
Registration Statement, the fees and disbursements of one counsel for the
Holders (which counsel shall be selected by

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the Majority Holders and which counsel may also be counsel for the Initial
Purchasers) and (viii) the fees and disbursements of the independent public
accountants of the Company, including the expenses of any special audits or
"COLD COMFORT" letters required by or incident to such performance and
compliance, but excluding fees and expenses of counsel to the underwriters
(other than fees and expenses set forth in clause (ii) above) or the Holders and
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of Registrable Securities by a Holder.

     "REGISTRATION STATEMENT" shall mean any registration statement of the
Company that covers any of the Exchange Securities or Registrable Securities
pursuant to the provisions of this Agreement and all amendments and supplements
to any such Registration Statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

     "SEC" shall mean the Securities and Exchange Commission.

     "SHELF REGISTRATION" shall mean a registration effected pursuant to Section
2(b) hereof.

     "SHELF REGISTRATION STATEMENT" shall mean a "SHELF" registration statement
of the Company pursuant to the provisions of Section 2(b) of this Agreement
which covers all of the Registrable Securities (but no other securities unless
approved by the Holders whose Registrable Securities are covered by such Shelf
Registration Statement) on an appropriate form under Rule 415 under the 1933
Act, or any similar rule that may be adopted by the SEC, and all amendments and
supplements to such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

     "TRUSTEE" shall mean the trustee with respect to the Securities under the
Indenture.

     "UNDERWRITER" shall have the meaning set forth in Section 3 hereof.

     "UNDERWRITTEN REGISTRATION" or "UNDERWRITTEN OFFERING" shall mean a
registration in which Registrable Securities are sold to an Underwriter for
reoffering to the public.

     2. Registration Under the 1933 Act.

          (a) To the extent not prohibited by any applicable law or applicable
     interpretation of the Staff of the SEC, the Company shall use its

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     reasonable best efforts to cause to be filed within 180 days after the
     Issue Date an Exchange Offer Registration Statement covering the offer by
     the Company to the Holders to exchange all of the Registrable Securities
     for Exchange Securities and to have such Registration Statement be declared
     effective within 240 days after the Issue Date and remain effective until
     the closing of the Exchange Offer. The Company shall commence the Exchange
     Offer promptly after the Exchange Offer Registration Statement has been
     declared effective by the SEC and use its reasonable best efforts to have
     the Exchange Offer consummated within 270 days of the Issue Date. The
     Company shall commence the Exchange Offer by mailing the related exchange
     offer Prospectus and accompanying documents to each Holder stating, in
     addition to such other disclosures as are required by applicable law:

               (i) that the Exchange Offer is being made pursuant to this
          Registration Rights Agreement and that all Registrable Securities
          validly tendered will be accepted for exchange;

               (ii) the dates of acceptance for exchange (which shall be a
          period of at least 30 days from the date such notice is mailed) (the
          "EXCHANGE DATES");

               (iii) that any Registrable Security not tendered will remain
          outstanding and continue to accrue interest, but will not retain any
          rights under this Registration Rights Agreement;

               (iv) that each Holder electing to have a Registrable Security
          exchanged pursuant to the Exchange Offer will be required to (A)
          surrender such Registrable Security, together with the enclosed
          letters of transmittal, to the institution and at the address (located
          in the Borough of Manhattan, The City of New York) specified in the
          notice prior to the close of business on the last Exchange Date and
          (B) represent that (x) it is not an affiliate of the Company as
          defined in Rule 405 under the 1933 Act, (y) such Registrable Security
          was acquired in the ordinary course of its business and (z) at the
          time of the Exchange Offer, it has no arrangement with any Person to
          participate in the distribution (within the meaning of the 1933 Act)
          of the Exchange Securities; and

               (v) that Holders will be entitled to withdraw their election, not
          later than the close of business on the last Exchange Date, by sending
          to the institution and at the address (located in the

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          Borough of Manhattan, The City of New York) specified in the notice a
          telegram, telex, facsimile transmission or letter setting forth the
          name of such Holder, the principal amount of Registrable Securities
          delivered for exchange and a statement that such Holder is withdrawing
          his election to have such Securities exchanged.

                      As soon as practicable after the last Exchange Date, the
               Company shall:

                    (i) accept for exchange Registrable Securities or portions
               thereof tendered and not validly withdrawn pursuant to the
               Exchange Offer; and

                    (ii) deliver, or cause to be delivered, to the Trustee for
               cancellation all Registrable Securities or portions thereof so
               accepted for exchange by the Company and issue, and cause the
               Trustee to promptly authenticate and mail to each Holder, an
               Exchange Security equal in principal amount to the principal
               amount of the Registrable Securities surrendered by such Holder.

        The Company shall use its reasonable best efforts to complete the
Exchange Offer as provided above and shall comply with the applicable
requirements of the 1933 Act, the 1934 Act and other applicable laws and
regulations in connection with the Exchange Offer. The Exchange Offer shall not
be subject to any conditions, other than that the Exchange Offer does not
violate applicable law or any applicable interpretation of the Staff of the SEC.
The Company shall inform the Initial Purchasers of the names and addresses of
the Holders to whom the Exchange Offer is made, and the Initial Purchasers shall
have the right, subject to applicable law, to contact such Holders and otherwise
facilitate the tender of Registrable Securities in the Exchange Offer.

          (b) In the event that (i) the Company determines that the Exchange
     Offer Registration provided for in Section 2(a) above is not available or
     may not be consummated as soon as practicable after the last Exchange Date
     because it would violate applicable law or the applicable interpretations
     of the Staff of the SEC, (ii) the Exchange Offer is not for any other
     reason consummated within 270 days of the Issue Date or (iii) in the case
     of any Holder that participates in an Exchange Offer that has been
     completed, such Holder has not received, in the opinion of counsel for the
     Initial Purchasers, Exchange Securities on the Exchange Date that may be
     offered or sold without restriction under state and federal securities laws
     (other than due solely to the status of such Holder as an affiliate of the

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     Company as defined in Rule 405 under the 1933 Act or as a broker-dealer),
     the Company shall (A) promptly deliver to the Holders written notice
     thereof and (B) use its reasonable best efforts to cause to be filed, at
     its sole expense, as soon as practicable after, and in no event later than
     90 days after, such determination, date or notice of such opinion of
     counsel is given to the Company, as the case may be, a Shelf Registration
     Statement providing for the sale by the Holders of all of the Registrable
     Securities and to have such Shelf Registration Statement declared effective
     by the SEC. In the event the Company is required to file a Shelf
     Registration Statement solely as a result of the matters referred to in
     clause (iii) of the preceding sentence, the Company shall use its
     reasonable best efforts to file and have declared effective by the SEC both
     an Exchange Offer Registration Statement pursuant to Section 2(a) with
     respect to all Registrable Securities and a Shelf Registration Statement
     (which may be a combined Registration Statement with the Exchange Offer
     Registration Statement) with respect to offers and sales of Registrable
     Securities held by the Initial Purchasers after completion of the Exchange
     Offer. The Company agrees to use its reasonable best efforts to keep the
     Shelf Registration Statement continuously effective until the earlier of
     two years (or, if Rule 144(k) is amended to provide a shorter restrictive
     period with respect to the Registrable Securities, such shorter period)
     after the Issue Date or such shorter period that will terminate when (A)
     all of the Registrable Securities covered by the Shelf Registration
     Statement have been sold pursuant to the Shelf Registration Statement or
     (B) in the case of clause (ii) of the first sentence of this Section 2(b),
     when the Exchange Offer is consummated. The Company further agrees to
     supplement or amend the Shelf Registration Statement if required by the
     rules, regulations or instructions applicable to the registration form used
     by the Company for such Shelf Registration Statement or by the 1933 Act or
     by any other rules and regulations thereunder for shelf registration or if
     reasonably requested by a Holder with respect to information relating to
     such Holder, and to use its reasonable best efforts to cause any such
     amendment to become effective and such Shelf Registration Statement to
     become usable as soon as thereafter practicable. The Company agrees to
     furnish to the Holders of Registrable Securities copies of any such
     supplement or amendment promptly after its being used or filed with the
     SEC.

          (c) The Company shall pay all Registration Expenses in connection with
     the registration pursuant to Section 2(a) and Section 2(b). Each Holder
     shall pay all underwriting discounts and commissions and transfer taxes, if
     any, relating to the sale or disposition of such Holder's Registrable
     Securities pursuant to the Shelf Registration Statement.

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          (d) An Exchange Offer Registration Statement pursuant to Section 2(a)
     hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof
     will not be deemed to have become effective unless it has been declared
     effective by the SEC; provided, however, that, if, after it has been
     declared effective, the offering of Registrable Securities pursuant to a
     Shelf Registration Statement is interfered with by any stop order,
     injunction or other order or requirement of the SEC or any other
     governmental agency or court, such Registration Statement will be deemed
     not to have become effective during the period of such interference until
     the offering of Registrable Securities pursuant to such Registration
     Statement may legally resume.

     In the event that (i) an Exchange Offer Registration Statement (or a Shelf
Registration Statement pursuant to Section 2(b)) 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 pursuant to Section 2(b)) 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 Securities 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 Securities 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(p), the Securities 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
(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 Securities from the day
of such filing, effectiveness or consummation, as the case may be, shall be
reduced to the original interest rate of the Securities as of the Issue Date.

     In the event that a Shelf Registration Statement is declared effective
pursuant to Section 2(b) and the Company fails to keep such Shelf Registration
Statement continuously effective or usable for resales for the period set forth
in

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Section 2(b) due to any matter contemplated by Section 3(e)(v), and such failure
continues for more than 60 days (whether or not consecutive) in any twelve-month
period, then the interest rate on the Securities will be increased by 0.25% per
annum from the 61st day until the earlier of (x) the date that the Shelf
Registration Statement is again deemed effective or is usable, (y) the date that
is the second anniversary of the Issue Date (or, if Rule 144(k) is amended to
provide a shorter restrictive period, such shorter period), or (z) the date as
of which all the Securities are sold pursuant to the Shelf Registration
Statement.

          (e) Without limiting the remedies available to the Initial Purchasers
     and the Holders, the Company acknowledges that any failure by the Company
     to comply with its obligations under Section 2(a) and Section 2(b) hereof
     may result in material irreparable injury to the Initial Purchasers or the
     Holders for which there is no adequate remedy at law, that it will not be
     possible to measure damages for such injuries precisely and that, in the
     event of any such failure, the Initial Purchasers or any Holder may obtain
     such relief as may be required to specifically enforce the Company's
     obligations under Section 2(a) and Section 2(b) hereof.

     3. Registration Procedures.

     In connection with the obligations of the Company with respect to the
Registration Statements pursuant to Section 2(a) and Section 2(b) hereof, the
Company shall as expeditiously as possible:

          (a) prepare and file with the SEC a Registration Statement on the
     appropriate form under the 1933 Act, which form (x) shall be selected by
     the Company and (y) shall, in the case of a Shelf Registration, be
     available for the sale of the Registrable Securities by the selling Holders
     thereof and (z) shall comply as to form in all material respects with the
     requirements of the applicable form and include all financial statements
     required by the SEC to be filed therewith, and use its reasonable best
     efforts to cause such Registration Statement to become effective and remain
     effective in accordance with Section 2 hereof;

          (b) prepare and file with the SEC such amendments and post-effective
     amendments to each Registration Statement as may be necessary to keep such
     Registration Statement effective for the applicable period and cause each
     Prospectus to be supplemented by any required prospectus supplement and, as
     so supplemented, to be filed pursuant to Rule 424 under the 1933 Act; to
     keep each Prospectus current during the period described under Section 4(3)
     and Rule 174 under the 1933 Act that is

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     applicable to transactions by brokers or dealers with respect to the
     Registrable Securities or Exchange Securities;

          (c) in the case of a Shelf Registration, furnish to each Holder of
     Registrable Securities, to counsel for the Initial Purchasers, to counsel
     for the Holders and to each Underwriter of an Underwritten Offering of
     Registrable Securities, if any, without charge, as many copies of each
     Prospectus, including each preliminary Prospectus, and any amendment or
     supplement thereto and such other documents as such Holder or Underwriter
     may reasonably request, in order to facilitate the public sale or other
     disposition of the Registrable Securities; and the Company consents to the
     use of such Prospectus and any amendment or supplement thereto in
     accordance with applicable law by each of the selling Holders of
     Registrable Securities and any such Underwriters in connection with the
     offering and sale of the Registrable Securities covered by and in the
     manner described in such Prospectus or any amendment or supplement thereto
     in accordance with applicable law;

          (d) use its reasonable best efforts to register or qualify the
     Registrable Securities under all applicable state securities or "BLUE SKY"
     laws of such jurisdictions as any Holder of Registrable Securities covered
     by a Registration Statement shall reasonably request in writing by the time
     the applicable Registration Statement is declared effective by the SEC, to
     cooperate with such Holders in connection with any filings required to be
     made with the National Association of Securities Dealers, Inc. and do any
     and all other acts and things which may be reasonably necessary or
     advisable to enable such Holder to consummate the disposition in each such
     jurisdiction of such Registrable Securities owned by such Holder; provided,
     however, that the Company shall not be required to (i) qualify as a foreign
     corporation or as a dealer in securities in any jurisdiction where it would
     not otherwise be required to qualify but for this Section 3(d), (ii) file
     any general consent to service of process or (iii) subject itself to
     taxation in any such jurisdiction if it is not so subject;

          (e) in the case of a Shelf Registration, notify each Holder of
     Registrable Securities, counsel for the Holders and counsel for the Initial
     Purchasers promptly and, if requested by any such Holder or counsel,
     confirm such advice in writing (i) when a Registration Statement has become
     effective and when any post-effective amendment thereto has been filed and
     becomes effective, (ii) of any request by the SEC or any state securities
     authority for amendments and supplements to a Registration Statement and
     Prospectus or for additional information after the Registration Statement
     has become effective, (iii)of the issuance by the

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     SEC or any state securities authority of any stop order suspending the
     effectiveness of a Registration Statement or the initiation of any
     proceedings for that purpose, (iv) if, between the effective date of a
     Registration Statement and the closing of any sale of Registrable
     Securities covered thereby, the representations and warranties of the
     Company contained in any underwriting agreement, securities sales agreement
     or other similar agreement, if any, relating to the offering cease to be
     true and correct in all material respects or if the Company receives any
     notification with respect to the suspension of the qualification of the
     Registrable Securities for sale in any jurisdiction or the initiation of
     any proceeding for such purpose, (v) of the happening of any event during
     the period a Shelf Registration Statement is effective which makes any
     statement made in such Registration Statement or the related Prospectus
     untrue in any material respect or which requires the making of any changes
     in such Registration Statement or Prospectus in order to make the
     statements therein not misleading, including (A) the fact that the
     Registration Statement or the related Prospectus contains an untrue
     statement of material fact or omits to state a material fact required or
     necessary in order to make the statements therein not misleading and (B)
     circumstances relating to pending corporate developments, public filings
     with the SEC and similar events that result in such Registration Statement
     not being continuously effective or usable for resales during the period
     set forth in Section 2(b) and (vi) of any determination by the Company that
     a post-effective amendment to a Registration Statement would be
     appropriate;

          (f) make every reasonable effort to obtain the withdrawal of any order
     suspending the effectiveness of a Registration Statement at the earliest
     possible moment and provide immediate notice to each Holder of the
     withdrawal of any such order;

          (g) in the case of a Shelf Registration, furnish to each Holder of
     Registrable Securities, without charge, at least one conformed copy of each
     Registration Statement and any post-effective amendment thereto (without
     documents incorporated therein by reference or exhibits thereto, unless
     requested);

          (h) in the case of a Shelf Registration, cooperate with the selling
     Holders of Registrable Securities to facilitate the timely preparation and
     delivery of certificates representing Registrable Securities to be sold and
     not bearing any restrictive legends and enable such Registrable Securities
     to be in such denominations (consistent with the provisions of the
     Indenture) and registered in such names as the selling Holders may

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     reasonably request at least one business day prior to the closing of any
     sale of Registrable Securities;

          (i) in the case of a Shelf Registration, upon the occurrence of any
     matter contemplated by Section 3(e)(v) hereof, use its reasonable best
     efforts to prepare and file with the SEC a supplement or post-effective
     amendment to a Registration Statement or the related Prospectus or any
     document incorporated therein by reference or file any other required
     document so that, as thereafter delivered to the purchasers of the
     Registrable Securities, such Prospectus will not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements therein, in light of the circumstances under which they
     were made, not misleading. The Company agrees to notify the Holders to
     suspend use of the Prospectus as promptly as practicable after the
     occurrence of such an event, and the Holders hereby agree to suspend use of
     the Prospectus until the Company has amended or supplemented the Prospectus
     to correct such misstatement or omission. The Company will extend (A) the
     period set forth in Section 2(b) during which the Company is required to
     keep the Shelf Registration Statement effective and (B) the period set
     forth in Section 4(b)(i) during which Participating Broker-Dealers are
     authorized to use the Prospectus, by the number of days during the period
     from and including the date of the giving of such notice to and including
     the date when Holders receive copies of the supplemented or amended
     Prospectus necessary to permit resales of the Securities or to and
     including the date on which the Company has given notice that the sale of
     the Securities may be resumed, as the case may be;

          (j) a reasonable time prior to the filing of any Registration
     Statement, any Prospectus, any amendment to a Registration Statement or
     amendment or supplement to a Prospectus or any document which is to be
     incorporated by reference into a Registration Statement or a Prospectus
     after initial filing of a Registration Statement, provide copies of such
     document to the Initial Purchasers and their counsel (and, in the case of a
     Shelf Registration Statement, the Holders and their counsel) and make such
     of the representatives of the Company as shall be reasonably requested by
     the Initial Purchasers or their counsel (and, in the case of a Shelf
     Registration Statement, the Holders or their counsel) available for
     discussion of such document, and shall not at any time file or make any
     amendment to the Registration Statement, any Prospectus or any amendment of
     or supplement to a Registration Statement or a Prospectus or any document
     which is to be incorporated by reference into a Registration Statement or a
     Prospectus, of which the Initial Purchasers and their counsel (and, in the
     case of a Shelf Registration Statement, the

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     Holders and their counsel) shall not have previously been advised and
     furnished a copy or to which the Initial Purchasers or their counsel (and,
     in the case of a Shelf Registration Statement, the Holders or their
     counsel) shall object, except for any amendment or supplement or document
     (a copy of which has been previously furnished to the Initial Purchasers
     and their counsel (and, in the case of a Shelf Registration Statement, the
     Holders and their counsel)) which counsel to the Company shall advise the
     Company in writing is required in order to comply with applicable law;

          (k) obtain a CUSIP number for all Exchange Securities or Registrable
     Securities, as the case may be, not later than the effective date of a
     Registration Statement;

          (l) cause the Indenture to be qualified under the Trust Indenture Act
     of 1939, as amended (the "TIA"), in connection with the registration of the
     Exchange Securities or Registrable Securities, as the case may be,
     cooperate with the Trustee and the Holders to effect such changes to the
     Indenture as may be required for the Indenture to be so qualified in
     accordance with the terms of the TIA and execute, and use its reasonable
     best efforts to cause the Trustee to execute, all documents as may be
     required to effect such changes and all other forms and documents required
     to be filed with the SEC to enable the Indenture to be so qualified in a
     timely manner;

          (m) in the case of a Shelf Registration, make available for inspection
     by a representative of the Holders of the Registrable Securities, any
     Underwriter participating in any disposition pursuant to such Shelf
     Registration Statement, and attorneys and accountants designated by the
     Holders, at reasonable times and in a reasonable manner, all financial and
     other records, pertinent documents and properties of the Company, and cause
     the respective officers, directors and employees of the Company to supply
     all information reasonably requested by any such representative,
     Underwriter, attorney or accountant in connection with a Shelf Registration
     Statement;

          (n) in the case of a Shelf Registration, use its reasonable best
     efforts to cause all Registrable Securities to be listed on any securities
     exchange or any automated quotation system on which similar securities
     issued by the Company are then listed if requested by the Majority Holders,
     to the extent such Registrable Securities satisfy applicable listing
     requirements;

                                       14
<PAGE>   15

          (o) if reasonably requested by any Holder of Registrable Securities
     covered by a Registration Statement, (i) promptly incorporate in a
     Prospectus supplement or post-effective amendment such information with
     respect to such Holder as such Holder reasonably requests to be included
     therein and (ii) make all required filings of such Prospectus supplement or
     such post-effective amendment as soon as the Company has received
     notification of the matters to be incorporated in such filing; and

          (p) in the case of a Shelf Registration, enter into such customary
     agreements and take all such other actions in connection therewith
     (including those requested by the Holders of a majority of the Registrable
     Securities being sold) in order to expedite or facilitate the disposition
     of such Registrable Securities including, but not limited to, an
     Underwritten Offering and in such connection, (i) to the extent possible,
     make such representations and warranties to the Holders and any
     Underwriters of such Registrable Securities with respect to the business of
     the Company and its subsidiaries, the Registration Statement, Prospectus
     and documents incorporated by reference or deemed incorporated by
     reference, if any, in each case, in form, substance and scope as are
     customarily made by issuers to underwriters in underwritten offerings and
     confirm the same if and when requested, (ii) obtain opinions of counsel to
     the Company (which counsel and opinions, in form, scope and substance,
     shall be reasonably satisfactory to the Holders and such Underwriters and
     their respective counsel) addressed to each selling Holder and Underwriter
     of Registrable Securities, covering the matters customarily covered in
     opinions requested in underwritten offerings, (iii) obtain "COLD COMFORT"
     letters from the independent certified public accountants of the Company
     (and, if necessary, any other certified public accountant of any subsidiary
     of the Company, or of any business acquired by the Company for which
     financial statements and financial data are or are required to be included
     in the Registration Statement) addressed to each selling Holder and
     Underwriter of Registrable Securities, such letters to be in customary form
     and covering matters of the type customarily covered in "COLD COMFORT"
     letters in connection with underwritten offerings, and (iv) deliver such
     documents and certificates as may be reasonably requested by the Holders of
     a majority in principal amount of the Registrable Securities being sold or
     the Underwriters, and which are customarily delivered in underwritten
     offerings, to evidence the continued validity of the representations and
     warranties of the Company made pursuant to clause (i) above and to evidence
     compliance with any customary conditions contained in an underwriting
     agreement.

                                       15
<PAGE>   16

     In the case of a Shelf Registration Statement, (A) a Holder that sells
Registrable Securities pursuant to such Shelf Registration Statement will be
required to be named as a selling security holder in the related Prospectus and
(B) the Company may require each Holder of Registrable Securities to furnish to
the Company such information regarding the Holder and the proposed distribution
by such Holder of such Registrable Securities as the Company may from time to
time reasonably request in writing. The Company will not have any obligation to
include in the Shelf Registration Statement any Holder that does not deliver
such information to the Company.

     In the case of a Shelf Registration Statement, each Holder agrees that,
upon receipt of any notice from the Company of the happening of any event of the
kind described in Section 3(e)(v) hereof, such Holder will forthwith discontinue
disposition of Registrable Securities pursuant to a Registration Statement until
such Holder's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 3(i) hereof, and, if so directed by the Company, such
Holder will deliver to the Company (at its expense) all copies in its
possession, other than permanent file copies then in such Holder's possession,
of the Prospectus covering such Registrable Securities current at the time of
receipt of such notice. If the Company shall give any such notice to suspend the
disposition of Registrable Securities pursuant to a Registration Statement, the
Company shall extend the period during which the Registration Statement shall be
maintained effective pursuant to this Agreement by the number of days during the
period from and including the date of the giving of such notice to and including
the date when the Holders shall have received copies of the supplemented or
amended Prospectus necessary to resume such dispositions. The Company may give
any such notice only twice during any 365 day period and any such suspensions
may not exceed 30 days for each suspension and there may not be more than two
suspensions in effect during any 365 day period.

     The Holders of Registrable Securities covered by a Shelf Registration
Statement who desire to do so may sell such Registrable Securities in an
Underwritten Offering. In any such Underwritten Offering, the investment banker
or investment bankers and manager or managers (the "UNDERWRITERS") that will
administer the offering will be selected by the Majority Holders of the
Registrable Securities included in such offering.

     4. Participation of Broker-Dealers in Exchange Offer.

          (a) The Staff of the SEC has taken the position that any broker-
     dealer that receives Exchange Securities for its own account in the
     Exchange Offer in exchange for Securities that were acquired by such
     broker-dealer as a result of market-making or other trading activities (a

                                       16
<PAGE>   17

     "PARTICIPATING BROKER-DEALER"), may be deemed to be an "UNDERWRITER" within
     the meaning of the 1933 Act and must deliver a prospectus meeting the
     requirements of the 1933 Act in connection with any resale of such Exchange
     Securities.

     The Company understands that it is the Staff's position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a
plan of distribution containing a statement to the above effect and the means by
which Participating Broker-Dealers may resell the Exchange Securities, without
naming the Participating Broker-Dealers or specifying the amount of Exchange
Securities owned by them, such Prospectus may be delivered by Participating
Broker-Dealers to satisfy their prospectus delivery obligation under the 1933
Act in connection with resales of Exchange Securities for their own accounts, so
long as the Prospectus otherwise meets the requirements of the 1933 Act.

          (b) In light of the above, notwithstanding the other provisions of
     this Agreement, the Company agrees that the provisions of this Agreement as
     they relate to a Shelf Registration shall also apply to an Exchange Offer
     Registration to the extent, and with such reasonable modifications thereto
     as may be, reasonably requested by the Initial Purchasers or by one or more
     Participating Broker-Dealers, in each case as provided in clause (ii)
     below, in order to expedite or facilitate the disposition of any Exchange
     Securities by Participating Broker-Dealers consistent with the positions of
     the Staff recited in Section 4(a) above; provided that:

               (i) the Company shall not be required to amend or supplement the
          Prospectus contained in the Exchange Offer Registration Statement, as
          would otherwise be contemplated by Section 3(i), for a period
          exceeding 240 days after the last Exchange Date (as such period may be
          extended pursuant to the penultimate paragraph of Section 3 of this
          Agreement) and Participating Broker-Dealers shall not be authorized by
          the Company to deliver and shall not deliver such Prospectus after
          such period in connection with the resales contemplated by this
          Section 4; and

               (ii) the application of the Shelf Registration procedures set
          forth in Section 3 of this Agreement to an Exchange Offer
          Registration, to the extent not required by the positions of the Staff
          of the SEC or the 1933 Act and the rules and regulations thereunder,
          will be in conformity with the reasonable request to the Company by
          the Initial Purchasers or with the reasonable request in writing to
          the Company by one or more broker-dealers who

                                       17
<PAGE>   18

          certify to the Initial Purchasers and the Company in writing that they
          anticipate that they will be Participating Broker-Dealers; and
          provided further that, in connection with such application of the
          Shelf Registration procedures set forth in Section 3 to an Exchange
          Offer Registration, the Company shall be obligated (x) to pay the fees
          and expenses of only one counsel representing the Participating
          Broker-Dealers, which shall be counsel to the Initial Purchasers
          unless such counsel elects not to so act and (y) to cause to be
          delivered only one, if any, "COLD COMFORT" letter with respect to the
          Prospectus in the form existing on the last Exchange Date and with
          respect to each subsequent amendment or supplement, if any, effected
          during the period specified in clause (i) above.

     (c) The Initial Purchasers shall have no liability to the Company or any
Holder with respect to any request that it may make pursuant to Section 4(b)
above.

     5. Indemnification and Contribution.

          (a) The Company agrees to indemnify and hold each Initial Purchaser,
     each Holder and each Person, if any, who controls any Initial Purchaser or
     any Holder within the meaning of Section 15 of the Act or Section 20 of the
     Exchange Act, harmless from and against any and all losses, claims,
     damages, and liabilities arising because any Registration Statement (or any
     amendment thereto) pursuant to which Exchange Securities or Registrable
     Securities were registered under the 1933 Act, including all documents
     incorporated therein by reference, or any Prospectus (as amended or
     supplemented if the Company shall have furnished any amendments or
     supplements thereto) contained or is alleged to have contained any untrue
     statement of a material fact or omitted or is alleged to have omitted to
     state a material fact required to be stated therein or necessary to make
     the statements therein not misleading, except as to losses, claims, damages
     or liabilities caused by any such untrue statement or omission or alleged
     untrue statement or omission made in reliance upon information furnished to
     the Company herein or otherwise in writing by or on behalf of any Initial
     Purchaser of any Holder for use therein. In connection with any
     Underwritten Offering permitted by Section 3, the Company will also
     indemnify the Underwriters, if any, selling brokers, dealers and similar
     securities industry professionals participating in the distribution, their
     officers and directors and each Person who controls such Persons (within
     the meaning of the 1933 Act and the 1934 Act) to the same extent as
     provided above with respect to the indemnification of the Holders, if
     requested in connection with any Registration Statement.

                                       18
<PAGE>   19

          (b) In the event that any Registration Statement is filed pursuant to
     this Agreement prior to the consummation of the split-off of AT&T Wireless
     Group from AT&T, as described in the Offering Memorandum, AT&T agrees to
     indemnify and hold each Initial Purchaser, each Holder and each Person, if
     any, who controls any Initial Purchaser or Holder within the meaning of
     Section 15 of the Act or Section 20 of the Exchange Act, harmless from and
     against any and all losses, claims, damages, and liabilities arising
     because any Registration Statement (or any amendment thereto) pursuant to
     which Exchange Securities or Registrable Securities were registered under
     the 1933 Act, including all documents incorporated therein by reference, or
     any Prospectus (as amended or supplemented if the Company shall have
     furnished any amendments or supplements thereto) contained or is alleged to
     have contained any untrue statement of a material fact or omitted or is
     alleged to have omitted to state a material fact required to be stated
     therein or necessary to make the statements therein not misleading, which
     untrue statement or omission or alleged untrue statement or omission was
     made in the Registration Statement (or any amendment thereto), including
     all documents incorporated therein by reference , or the Prospectus or any
     amendment or supplement thereto in reliance upon information furnished to
     the Company herein or otherwise in writing by or on behalf of AT&T for use
     in connection with the preparation thereof.

          (c) Each Holder agrees, severally and not jointly, to indemnify and
     hold the Company and AT&T, the Initial Purchasers and the other selling
     Holders, and each of their respective directors, officers who sign the
     Registration Statement, and each Person who controls the Company, AT&T, any
     Initial Purchaser and any other selling Holder within the meaning of
     Section 15 of the Act or Section 20 of the Exchange Act, harmless from and
     against any and all losses, claims, damages and liabilities arising because
     any Registration Statement (or any amendment thereto) pursuant to which
     Exchange Securities or Registrable Securities were registered under the
     1933 Act, including all documents incorporated therein by reference, or any
     Prospectus (as amended or supplemented if the Company shall have furnished
     any amendments or supplements thereto) contained any untrue statement of a
     material fact or omitted or is alleged to have omitted to state a material
     fact required to be stated therein or necessary to make the statements
     therein not misleading, which untrue statement or omission or alleged
     untrue statement or omission was made in the Registration Statement (or any
     amendment thereto), including all documents incorporated therein by
     reference, or the Prospectus or any amendment or supplement thereto in
     reliance upon information furnished

                                       19
<PAGE>   20

     to the Company herein or otherwise in writing by or on behalf of such
     Initial Purchaser for use in connection with the preparation thereof.

          (d) Upon the commencement of any action against any Person in respect
     of which indemnity may be sought on account of any indemnity agreement
     contained herein, such Person or any Person controlling such Person as
     aforesaid, will promptly give written notice of the commencement thereof to
     the party or parties against whom indemnity shall be sought, but the
     omission so to notify such indemnifying party or parties of any such action
     shall not relieve such indemnifying party or parties from any liability
     which it or they may have to the indemnified party or parties otherwise
     than on account of such indemnity agreement. In case such notice of any
     such action shall be so given, such indemnifying party or parties shall be
     entitled to participate at its or their own expense in the defense of such
     action, or, if it or they so elect, to assume the defense of such action,
     and in the latter event such defense shall be conducted by counsel chosen
     by such indemnifying party or parties and satisfactory to the indemnified
     party or parties who shall be defendant or defendants in such action, and
     such defendant or defendants shall bear the fees and expenses of any
     additional counsel retained by them; but if the indemnifying party or
     parties shall not elect to assume the defense of such action, such
     indemnifying party or parties will reimburse such indemnified party or
     parties for the reasonable fees and expenses of any counsel retained by
     them. In the event that the parties to any such action (including impleaded
     parties) include both the indemnifying party and the indemnified party and
     either (i) the indemnifying party or parties and indemnified party or
     parties mutually agree or (ii) representation of both the indemnifying
     party or parties and the indemnified party or parties by the same counsel
     is inappropriate under applicable standards of professional conduct due to
     actual or potential differing interests between them, then the indemnifying
     party or parties shall not have the right to assume the defense of such
     action on behalf of such indemnified party or parties and will reimburse
     such indemnified party or parties for the reasonable fees and expenses of
     any counsel retained by them and satisfactory to the indemnifying party or
     parties, it being understood that the indemnifying party or parties shall
     not, in connection with any one action or separate but similar or related
     actions in the same jurisdiction arising out of the same general
     allegations or circumstances, be liable for the reasonable fees and
     expenses of more than one separate firm of attorneys for all such
     indemnified parties, which firm shall be designated in writing by Merrill
     Lynch, Pierce, Fenner & Smith Incorporated and Salomon Smith Barney Inc.,
     jointly, in the case of an action in which one or more Initial Purchasers,
     or controlling persons are indemnified parties,

                                       20
<PAGE>   21

     by the Majority Holders in the case of an action in which the Holders, or
     controlling persons are indemnified parties, and by the Company or AT&T in
     the case of an action in which the Company or AT&T or any of their
     directors, officers or controlling persons are indemnified parties. The
     indemnifying party or parties shall not be liable under this Agreement with
     respect to any settlement made by any indemnified party or parties without
     prior written consent by the indemnifying party or parties to such
     settlement.

          (e) If the indemnification provided for in paragraph (a) or (c) of
     this Section 5 is unavailable to an indemnified party in respect of any
     losses, claims, damages, or liabilities referred to therein, then each
     indemnifying party under such paragraph, in lieu of indemnifying such
     indemnified party thereunder, shall contribute to the amount paid or
     payable by such indemnified party as a result of such losses, claims,
     damages or liabilities in such proportion as is appropriate to reflect the
     relative fault of the indemnified party or parties on the one hand and the
     indemnified party or parties on the other in connection with the statements
     or omissions or alleged statements or omissions which resulted in such
     losses, claims, damages, or liabilities, as well as any other relevant
     equitable considerations. The relative fault of the Company on the one hand
     and of the Holders on the other shall be determined by reference to, among
     other things, whether the untrue or alleged untrue statement of a material
     fact or the omission or alleged omission to state a material fact relates
     to information supplied by the Company or by the Holders and the parties'
     relative intent, knowledge, access to information and opportunity to
     correct or prevent such statement or omission. The Company and each Holder
     agree that it would not be just and equitable if contribution pursuant to
     this paragraph (e) were determined by pro rata allocation (even if the
     Holders were treated as one entity for such purpose) or by any other method
     of allocation which does not take account of the equitable considerations
     referred to above in this paragraph (e). The amount paid or payable by an
     indemnified party as a result of the losses, claims, damages or liabilities
     referred to in this paragraph (e) shall be deemed to include, subject to
     the limitations set forth above in this Section 5, any legal or other
     expenses reasonably incurred by such indemnified party in connection with
     defending any such action or claim. Notwithstanding the provisions of this
     paragraph (e), no Holder shall be required to contribute any amount in
     excess of the amount by which the total price at which the Registrable
     Securities were sold by such Holder exceeds the amount of any damages which
     such Holder has been required to pay, otherwise than pursuant to this
     paragraph (e), by reason of such untrue or alleged untrue statement or
     omission or alleged omission. No Person guilty of fraudulent

                                       21
<PAGE>   22

     misrepresentation (within the meaning of Section 11(e) of the 1933 Act)
     shall be entitled to contribution from any Person who was not guilty of
     such fraudulent misrepresentation.

          (f) In the event that any Registration Statement is filed pursuant to
     this Agreement prior to the consummation of the split-off of AT&T Wireless
     Group from AT&T, as described in the Offering Memorandum, AT&T agrees with
     each Initial Purchaser and Holder that, in the event amounts are payable by
     the Company under paragraphs (a) or (e) of this Section 11, and the Company
     is unable to satisfy these obligations, AT&T will satisfy these obligations
     to the extent they remain unpaid by the Company.

          (g) Notwithstanding anything to the contrary in this Agreement, in the
     event that the split-off of AT&T Wireless Group from AT&T, as described in
     the Offering Memorandum, is consummated prior to the date that any
     Registration Statement under this Agreement is declared effective, the
     obligations of AT&T under this Agreement shall terminate.

     The indemnity and contribution provisions contained in this Section 5 shall
remain operative and in full force and effect regardless of (i) any termination
of this Agreement, (ii) any investigation made by or on behalf of the Initial
Purchasers, any Holder or any Person controlling any Initial Purchaser or any
Holder, or by or on behalf of the Company, its officers or directors or any
Person controlling the Company, (iii) acceptance of any of the Exchange
Securities and (iv) any sale of Registrable Securities pursuant to a Shelf
Registration Statement.

     6. Miscellaneous.

          (a) No Inconsistent Agreements. The Company has not entered into, and
     on or after the date of this Agreement will not enter into, any agreement
     which is inconsistent with the rights granted to the Holders of Registrable
     Securities in this Agreement or otherwise conflicts with the provisions
     hereof. The rights granted to the Holders hereunder do not in any way
     conflict with and are not inconsistent with the rights granted to the
     holders of the Company's other issued and outstanding securities under any
     such agreements.

          (b) Amendments and Waivers. The provisions of this Agreement,
     including the provisions of this sentence, may not be amended, modified or
     supplemented, and waivers or consents to departures from the provisions
     hereof may not be given unless the Company has obtained the written consent
     of Holders of at least a majority

                                       22
<PAGE>   23

     in aggregate principal amount of the outstanding Registrable Securities
     affected by such amendment, modification, supplement, waiver or consent;
     provided, however, that no amendment, modification, supplement, waiver or
     consent to any departure from the provisions of Section 5 hereof shall be
     effective as against any Holder of Registrable Securities unless consented
     to in writing by such Holder.

          (c) Notices. All notices and other communications provided for or
     permitted hereunder shall be made in writing by hand-delivery, registered
     first-class mail, telex, telecopier, or any courier guaranteeing overnight
     delivery (i) if to a Holder, at the most current address given by such
     Holder to the Company by means of a notice given in accordance with the
     provisions of this Section 6(c), which address initially is, with respect
     to the Initial Purchasers, the addresses set forth in the Purchase
     Agreement; and (ii) if to the Company, initially at the Company's address
     set forth in the Purchase Agreement and thereafter at such other address,
     notice of which is given in accordance with the provisions of this Section
     6(c).

     All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when
answered back, if telexed; when receipt is acknowledged, if telecopied; and on
the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

     Copies of all such notices, demands, or other communications shall be
concurrently delivered by the Person giving the same to the Trustee, at the
address specified in the Indenture.

          (d) Successors and Assigns. This Agreement shall inure to the benefit
     of and be binding upon the successors, assigns and transferees of each of
     the parties, including, without limitation and without the need for an
     express assignment, subsequent Holders; provided that nothing herein shall
     be deemed to permit any assignment, transfer or other disposition of
     Registrable Securities in violation of the terms of the Purchase Agreement.
     If any transferee of any Holder shall acquire Registrable Securities, in
     any manner, whether by operation of law or otherwise, such Registrable
     Securities shall be held subject to all of the terms of this Agreement, and
     by taking and holding such Registrable Securities such Person shall be
     conclusively deemed to have agreed to be bound by and to perform all of the
     terms and provisions of this Agreement and such Person shall be entitled to
     receive the benefits hereof. The Initial Purchasers (in their capacity as
     Initial Purchasers) shall have no liability or obligation to the

                                       23
<PAGE>   24

     Company with respect to any failure by a Holder to comply with, or any
     breach by any Holder of, any of the obligations of such Holder under this
     Agreement.

          (e) Purchases and Sales of Securities. The Company shall not, and
     shall use its reasonable best efforts to cause its affiliates (as defined
     in Rule 405 under the 1933 Act) not to, purchase and then resell or
     otherwise transfer any Securities.

          (f) Third Party Beneficiary. The Holders shall be third party
     beneficiaries to the agreements made hereunder between the Company, on the
     one hand, and the Initial Purchasers, on the other hand, and shall have the
     right to enforce such agreements directly to the extent it deems such
     enforcement necessary or advisable to protect its rights or the rights of
     Holders hereunder.

          (g) Counterparts. This Agreement may be executed in any number of
     counterparts and by the parties hereto in separate counterparts, each of
     which when so executed shall be deemed to be an original and all of which
     taken together shall constitute one and the same ageement.

          (h) Headings. The headings in this Agreement are for convenience of
     reference only and shall not limit or otherwise affect the meaning hereof.

          (i) Governing Law. This Agreement shall be governed by the laws of the
     State of New York.

          (j) Severability. In the event that any one or more of the provisions
     contained herein, or the application thereof in any circumstance, is held
     invalid, illegal or unenforceable, the validity, legality and
     enforceability of any such provision in every other respect and of the
     remaining provisions contained herein shall not be affected or impaired
     thereby.

                                       24
<PAGE>   25

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                    AT&T WIRELESS SERVICES, INC.

                                    By:/s/ Joseph McCabe, Jr
                                       -----------------------------------------
                                        Name: Joseph McCabe, Jr.
                                        Title: VP and Chief Financial Officer

                                    AT&T CORP.

                                    By:/s/ Edward M. Dwyer
                                       -----------------------------------------
                                        Name: Edward M. Dwyer
                                        Title: VP and Treasurer

Confirmed and accepted as of
the date first above written:

MERRILL LYNCH, PIERCE, FENNER & SMITH
                  INCORPORATED

By:/s/ Victor Nesi
   --------------------------------------------
    Name: Victor Nesi
    Title: Managing Director

SALOMON SMITH BARNEY INC.

By:/s/ Rodolfo L. Molina
   --------------------------------------------
    Name: Rodolfo L. Molina
    Title: Vice President

Acting severally on behalf of themselves and the several Initial Purchasers
named herein

<PAGE>   26

                         SCHEDULE I - INITIAL PURCHASERS

Merrill Lynch, Pierce, Fenner & Smith Incorporated
Salomon Smith Barney Inc.
Banc of America Securities LLC
Banc One Capital Markets, Inc.
Barclays Capital Inc.
BNP Paribas Securities Corp.
Deutsche Banc Alex. Brown Inc.
Chase Securities Inc.
HSBC Securities (USA) Inc.
Lehman Brothers Inc.
Mizuho International plc
The Royal Bank of Scotland plc
Tokyo-Mitsubishi International plc
Utendahl Capital Partners, L.P.<PAGE>   1
                                                                   EXHIBIT 10.13

                          AT&T WIRELESS SERVICES, INC.
                         2001 LONG TERM INCENTIVE PLAN

      SECTION 1. PURPOSE. The purposes of the AT&T Wireless Services, Inc. 2001
Long Term Incentive Plan (the "Plan") are to encourage selected Employees and
Non-Employee Directors of AT&T Wireless Services, Inc. (the "Company") and its
Affiliates to acquire a proprietary and vested interest in the growth and
performance of the Company, to generate an increased incentive to contribute to
the Company's future success and prosperity, thus enhancing the value of the
Company for the benefit of stockholders, and to enhance the ability of the
Company and its Affiliates to attract and retain individuals of exceptional
managerial talent upon whom, in large measure, the sustained progress, growth
and profitability of the Company depends.

      SECTION 2. DEFINITIONS. As used in the Plan, the following terms shall
have the meanings set forth below:

      (a) "Affiliate" shall mean (i) any Person that directly, or through one or
more intermediaries, controls, or is controlled by, or is under common control
with, the Company or (ii) any entity in which the Company has a significant
equity interest, as determined by the Committee.

      (b) "Award" shall mean any Option, Stock Appreciation Right, Restricted
Stock Award, Performance Share, Performance Unit, dividend equivalent, Other
Stock Unit Award, or any other right, interest, or option relating to Shares or
other property granted pursuant to the provisions of the Plan.

      (c) "Award Agreement" shall mean any written agreement, contract, or other
instrument or document evidencing any Award granted by the Committee hereunder,
which may, but need not, be executed or acknowledged by both the Company and the
Participant.

      (d) "Board" shall mean the Board of Directors of the Company.

      (e) "Change in Control" shall mean the happening of any of the following
events;

            (i) An acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (an "Entity") of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 25% or more of either (A) the then outstanding Shares (the
"Outstanding Company Common Stock") or (B) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the "Outstanding Company Voting Securities"); excluding,
however, the following: (1) any acquisition directly from the Company, other
than an acquisition by virtue of the exercise of a conversion privilege unless
the security being so converted was itself acquired directly from the Company,
(2) any
<PAGE>   2
acquisition by the Company, (3) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any corporation
controlled by the Company, or (4) any acquisition by any corporation pursuant to
a transaction that complies with clauses (A), (B) and (C) of Section 2(e)(iii);

            (ii) A change in the composition of the Board as constituted
immediately following the date the Common Stock is distributed to the
stockholders of AT&T Corp. pursuant to that Separation and Distribution
Agreement dated as of June 4, 2001 between the Company and AT&T Corp. (the
"Post-Distribution Board Date") such that the individuals who, as of the
Post-Distribution Board Date, constitute the Board (such Board shall be
hereinafter referred to as the "Incumbent Board") cease for any reason to
constitute at least a majority of the Board; provided, however, that for
purposes of this definition, any individual who becomes a member of the Board
subsequent to the Post-Distribution Board Date, whose election, or nomination
for election, by the Company's stockholders was approved by a vote of at least a
majority of those individuals who are members of the Board and who were also
members of the Incumbent Board (or deemed to be such pursuant to this proviso)
shall be considered as though such individual were a member of the Incumbent
Board; and provided, further however, that any such individual whose initial
assumption of office occurs as a result of or in connection with either an
actual or threatened solicitation with respect to the election of directors (as
such terms are used in Rule 14a-12(c) of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of an Entity other than the Board shall not be so considered as
a member of the Incumbent Board;

            (iii) The consummation of a merger, reorganization or consolidation
or sale or other disposition of all or substantially all of the assets of the
Company (each, a "Corporate Transaction"); excluding however, any Corporate
Transaction pursuant to which (A) all or substantially all of the individuals
and entities who are the beneficial owners, respectively, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities immediately prior
to such Corporate Transaction will beneficially own, directly or indirectly,
more than 60% of, respectively, the outstanding shares of common stock, and the
combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Corporate Transaction (including, without limitation, a
corporation or other Person that as a result of such transaction owns the
Company or all or substantially all of the Company's assets either directly or
through one or more subsidiaries (a "Parent Company")) in substantially the same
proportions as their ownership, immediately prior to such Corporate Transaction,
of the Outstanding Company Common Stock and Outstanding Company Voting
Securities, as the case may be, (B) no Entity (other than the Company, any
employee benefit plan (or related trust) of the Company, such corporation
resulting from such Corporate Transaction or, if reference was made to equity
ownership of any Parent Company for purposes of determining whether clause (A)
above is satisfied in connection with the applicable Corporate Transaction, such
Parent Company) will beneficially own, directly or indirectly, 20% or more

                                      -2-
<PAGE>   3
of, respectively, the outstanding shares of common stock of the corporation
resulting from such Corporate Transaction or the combined voting power of the
outstanding voting securities of such corporation entitled to vote generally in
the election of directors unless such ownership resulted solely from ownership
of securities of the Company prior to the Corporate Transaction, and (C)
individuals who were members of the Incumbent Board will immediately after the
consummation of the Corporate Transaction constitute at least a majority of the
members of the board of directors of the corporation resulting from such
Corporate Transaction (or, if reference was made to equity ownership of any
Parent Company for purposes of determining whether clause (A) above is satisfied
in connection with the applicable Corporate Transaction, of the Parent Company);
or

            (iv) The approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company

            Notwithstanding the foregoing, the split off of the AT&T Wireless
group from AT&T Corp. pursuant to that Separation and Distribution Agreement
dated as of June 4, 2001 between the Company and AT&T Corp. shall not be
deemed a Change in Control.

      (f) "Change in Control Price" means, with respect to a Share, the higher
of (A) the highest reported sales price, regular way, of such Share in any
transaction reported on the New York Stock Exchange Composite Tape or other
national exchange on which such Shares are listed or on the Nasdaq National
Market during the 60-day period prior to and including the date of a Change in
Control or (B) if the Change in Control is the result of a tender or exchange
offer or a Corporate Transaction, the highest price per such Share paid in such
tender or exchange offer or Corporate Transaction; provided, however, that in
the case of Incentive Stock Options and Stock Appreciation Rights relating to
Incentive Stock Options, the Change in Control Price shall be the Fair Market
Value of such Share on the date such Incentive Stock Option or Stock
Appreciation Right is exercised or deemed exercised pursuant to Section 11(b).
To the extent that the consideration paid in any such transaction described
above consists all or in part of securities or other noncash consideration, the
value of such securities or other noncash consideration shall be determined in
the sole discretion of the Board.

      (g) "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time, and any successor thereto.

      (h) "Committee" shall mean the Compensation Committee of the Board, or any
successor to such committee, composed of no fewer than two directors each of
whom is a Non-Employee Director and an "outside director" within the meaning of
Section 162(m) of the Code, or any successor provision thereto.

      (i) "Company" shall mean AT&T Wireless Services, Inc., a Delaware
corporation.

                                      -3-
<PAGE>   4
      (j) "Covered Employee" shall mean a "covered employee" within the meaning
of Section 162(m)(3) of the Code, or any successor provision thereto.

      (k) "Employee" shall mean any employee of the Company or of any Affiliate.
An Employee shall also mean any consultant, advisor, or independent contractor
who provides services to the Company or any Affiliate, so long as such person
(i) renders bona fide services that are not in connection with the offer and
sale of the Company's securities in a capital-raising transaction and (ii) does
not directly or indirectly promote or maintain a market for the Company's
securities.

      Unless otherwise determined by the Committee in its sole discretion, for
purposes of the Plan, an Employee shall be considered to have terminated
employment or services and to have ceased to be an Employee if his or her
employer ceases to be an Affiliate, even if he or she continues to be employed
by such employer.

      (l) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

      (m) "Fair Market Value" shall mean, with respect to any property, the
market value of such property determined by such methods or procedures as shall
be established from time to time by the Committee.

      (n) "Incentive Stock Option" shall mean an Option granted under Section 6
that is intended to meet the requirements of Section 422 of the Code or any
successor provision thereto.

      (o) "Non-Employee Director" shall have the meaning set forth in Rule
16b-3(b)(3) promulgated under the Exchange Act, or any successor definition
adopted by the Securities and Exchange Commission.

      (p) "Nonstatutory Stock Option" shall mean an Option granted under Section
6 that is not intended to be an Incentive Stock Option.

      (q) "Option" shall mean any right granted to a Participant under the Plan
allowing such Participant to purchase Shares at such price or prices and during
such period or periods as the Committee shall determine.

      (r) "Other Stock Unit Award" shall mean any right granted to a Participant
by the Committee pursuant to Section 10.

      (s) "Participant" shall mean an Employee or Non-Employee Director who is
selected by the Committee to receive an Award under the Plan.

      (t) "Performance Award" shall mean any Award of performance shares or
performance units pursuant to Section 9.

                                      -4-
<PAGE>   5
      (u) "Performance Period" shall mean that period established by the
Committee at the time any Performance Award is granted or at any time thereafter
during which any performance goals specified by the Committee with respect to
such Award are to be measured.

      (v) "Performance Share" shall mean any grant pursuant to Section 9 of a
unit valued by reference to a designated number of Shares, which value may be
paid to the Participant by delivery of such property as the Committee shall
determine, including, without limitation, cash, Shares, other property, or any
combination thereof, upon achievement of such performance goals during the
Performance Period as the Committee shall establish at the time of such grant or
thereafter.

      (w) "Performance Unit" shall mean any grant pursuant to Section 9 of a
unit valued by reference to a designated amount of property other than Shares,
which value may be paid to the Participant by delivery of such property as the
Committee shall determine, including, without limitation, cash, Shares, other
property, or any combination thereof, upon achievement of such performance goals
during the Performance Period as the Committee shall establish at the time of
such grant or thereafter.

      (x) "Person" shall mean any individual, corporation, partnership,
association, limited liability company, joint-stock company, trust,
unincorporated organization, or government or political subdivision thereof.

      (y) "Restricted Stock" shall mean any Share issued with the restriction
that the holder may not sell, transfer, pledge, or assign such Share and with
such other restrictions as the Committee, in its sole discretion, may impose
(including, without limitation, any restriction on the right to vote such Share,
and the right to receive any cash dividends), which restrictions may lapse
separately or in combination at such time or times, in installments or
otherwise, as the Committee may deem appropriate.

      (z) "Restricted Stock Award" shall mean an award of Restricted Stock under
Section 8.

      (Aa)"Shares" shall mean the shares of Common Stock of the Company, par
value $0.01 per share (the "Shares").

      (Bb)"Stock Appreciation Right" shall mean any right granted to a
Participant pursuant to Section 7 to receive, upon exercise by the Participant,
the excess of (i) the Fair Market Value of one Share on the date of exercise or,
if the Committee shall so determine in the case of any such right other than one
related to any Incentive Stock Option, at any time during a specified period
before the date of exercise over (ii) the grant price of the right on the date
of grant, or if granted in connection with an outstanding Option on the date of
grant of the related Option, as specified by the Committee in its sole
discretion, which, except in the case of Substitute Awards or in connection with
an adjustment provided in Section 4(c), shall not be less than the Fair Market
Value of one Share on such date of grant of the right or the related Option, as
the case may be. Any payment by the Company in respect of such right may be made
in

                                      -5-
<PAGE>   6
cash, Shares, other property, or any combination thereof, as the Committee, in
its sole discretion, shall determine.

      (Cc)"Subsidiary" shall mean any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if, at the time of the
granting of the Award, each of the corporations other than the last corporation
in the unbroken chain owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in the
chain.

      (Dd)"Substitute Awards" shall mean Awards granted or Shares issued by the
Company in assumption of, or in substitution or exchange for, awards previously
granted, or the right or obligation to make future awards, by a company acquired
by the Company or with which the Company combines.

      SECTION 3. ADMINISTRATION. The Plan shall be administered by the
Committee. The Committee shall have full power and authority, subject to such
orders or resolutions not inconsistent with the provisions of the Plan as may
from time to time be adopted by the Board, to: (a) select the Employees of the
Company and its Affiliates and Non-Employee Directors of the Company to whom
Awards may from time to time be granted hereunder; (b) determine the type or
types of Award to be granted to each Participant hereunder; (c) determine the
number of Shares to be covered by each Award granted hereunder; (d) determine
the terms and conditions, not inconsistent with the provisions of the Plan, of
any Award granted hereunder; (e) determine whether, to what extent and under
what circumstances Awards may be settled in cash, Shares or other property or
canceled or suspended; (f) determine whether, to what extent, and under what
circumstances cash, Shares, and other property and other amounts payable with
respect to an Award made under the Plan shall be deferred either automatically
or at the election of the Participant; (g) interpret and administer the Plan and
any instrument or agreement entered into under the Plan; (h) establish such
rules and regulations and appoint such agents as it shall deem appropriate for
the proper administration of the Plan; and (i) make any other determination and
take any other action that the Committee deems necessary or desirable for
administration of the Plan. Decisions of the Committee shall be final,
conclusive, and binding on all persons, including the Company, any Participant,
any stockholder, and any employee of the Company or of any Affiliate. A majority
of the members of the Committee may determine its actions and fix the time and
place of its meetings. Notwithstanding the foregoing or anything else to the
contrary in the Plan, any action or determination by the Committee specifically
affecting or relating to an Award to a Non-Employee Director shall be approved
and ratified by the Board.

      SECTION 4. SHARES SUBJECT TO THE PLAN.

      (a) Subject to adjustment as provided in Section 4(c), a total of
eighty-six (86) million Shares shall be authorized for issuance under the Plan;
provided that, commencing on January l, 2002 and on each subsequent January 1
throughout the life of the Plan, an

                                      -6-
<PAGE>   7
additional number of Shares shall be added to the number of Shares authorized
for issuance under the Plan, which additional number of Shares shall be
calculated by multiplying (x) the number of Shares outstanding on such January 1
by (y) 2.75%; and provided, further, that if any Shares subject to an Award or
to an award under the Company's Adjustment Plan (the "Adjustment Plan") are
forfeited or if any Award or award under the Adjustment Plan based on Shares is
settled for cash, or expires or otherwise is terminated without issuance of such
Shares, the Shares subject to such Award shall to the extent of such cash
settlement, forfeiture or termination again be available for Awards under the
Plan. In the event that any Option or other Award granted hereunder is exercised
through the tendering of Shares (either actually or by attestation) or in the
event that withholding tax liabilities arising from such Option or other Award
are satisfied by the tendering of Shares or by the withholding of Shares by the
Company, only the number of Shares issued net of the Shares tendered or withheld
shall be counted for purposes of determining the maximum number of Shares
available for issuance under the Plan. In addition, Substitute Awards shall not
reduce the Shares authorized for issuance under the Plan or authorized for grant
to a Participant in any calendar year.

      (b) Any Shares issued hereunder may consist, in whole or in part, of
authorized and unissued shares, treasury shares, or shares purchased in the open
market or otherwise.

      (c) In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, stock split, reverse stock split, spin-off or
similar transaction or other change in corporate structure affecting the Shares,
such adjustments and other substitutions shall be made to the Plan and to Awards
as the Committee in its sole discretion deems equitable or appropriate,
including, without limitation, such adjustments in the aggregate number, class,
and kind of securities that may be delivered under the Plan, in the aggregate or
to any one Participant, in the number, class, kind, and option or exercise price
of securities subject to outstanding Options, Stock Appreciation Rights or other
Awards granted under the Plan, and in the number, class, and kind of securities
subject to Awards granted under the Plan (including, if the Committee deems
appropriate, the substitution of similar options to purchase the shares of, or
other awards denominated in the shares of, another company) as the Committee may
determine to be appropriate in its sole discretion; provided, however, that the
number of Shares subject to any Award shall always be a whole number.

      SECTION 5. ELIGIBILITY. Any Employee or Non-Employee Director shall be
eligible to be selected as a Participant; provided, however, that Incentive
Stock Options shall only be awarded to employees of the Company.

      SECTION 6. STOCK OPTIONS. Options may be granted hereunder to Participants
either alone or in addition to other Awards granted under the Plan. Any Option
granted under the Plan shall be evidenced by an Award Agreement in such form as
the Committee may from time to time approve. Any such Option shall be subject to
the following terms and conditions and to such additional terms and conditions,
not inconsistent with the provisions of the Plan, as the Committee shall deem
desirable:

                                      -7-
<PAGE>   8
      (a) OPTION PRICE. The purchase price per Share purchasable under an Option
shall be determined by the Committee in its sole discretion; provided, however,
that, except in the case of Substitute Awards or in connection with an
adjustment provided for in Section 4(c), such purchase price shall not be less
than the Fair Market Value of the Share on the date of the grant for an
Incentive Stock Option.

      (b) OPTION PERIOD. The term of each Option shall be fixed by the Committee
in its sole discretion; provided that if no term is fixed by the Committee, or
if the Option is an Incentive Stock Option, the Option shall not be exercisable
after the expiration of ten years from the date the Option is granted.

      (c) EXERCISABILITY. Options shall be exercisable at such time or times as
determined by the Committee at or subsequent to grant.

      (d) METHOD OF EXERCISE. Subject to the other provisions of the Plan, any
Option may be exercised by the Participant in whole or in part at such time or
times, and the Participant may make payment of the option price in such form or
forms, including, without limitation, payment by delivery of cash, delivery of
Shares (either actually or by attestation) already owned by the Participant for
at least six months (or any shorter period sufficient to avoid a charge to the
Company's earnings for financial reporting purposes) or delivery of other
consideration (including, where permitted by law and the Committee, Awards)
having a Fair Market Value on the exercise date equal to the total option price,
or by any combination of cash, such Shares and other consideration as the
Committee may specify in the applicable Award Agreement.

      (e) INCENTIVE STOCK OPTIONS. In accordance with rules and procedures
established by the Committee, and except as otherwise provided in Section 11,
the aggregate Fair Market Value (determined as of the time of grant) of the
Shares with respect to which Incentive Stock Options held by any Participant
which are exercisable for the first time by such Participant during any calendar
year under the Plan (and under any other benefit plans of the Company or any
Subsidiary) shall not exceed $100,000 or, if different, the maximum limitation
in effect at the time of grant under Section 422 of the Code, or any successor
provision, and any regulations promulgated thereunder. Incentive Stock Options
shall be granted only to Participants who are employees of the Company or a
Subsidiary of the Company. The terms of any Incentive Stock Option granted
hereunder shall comply in all respects with the provisions of Section 422 of the
Code or any successor provision, and any regulations promulgated thereunder. The
aggregate number of Shares with respect to which Incentive Stock Options may be
issued under the Plan shall not exceed eighty-six (86) million.

      (f) FORM OF SETTLEMENT. In its sole discretion, the Committee may provide,
at the time of grant, that the Shares to be issued upon an Option's exercise
shall be in the form of Restricted Stock or other similar securities, or may
reserve the right so to provide after the time of grant.

                                      -8-
<PAGE>   9
      SECTION 7. STOCK APPRECIATION RIGHTS. Stock Appreciation Rights may be
granted hereunder to Participants either alone or in addition to other Awards
granted under the Plan and may, but need not, relate to a specific Option
granted under Section 6. The provisions of Stock Appreciation Rights need not be
the same with respect to each recipient. Any Stock Appreciation Right related to
a Nonstatutory Stock Option may be granted at the same time such Option is
granted or at any time thereafter before exercise or expiration of such Option.
Any Stock Appreciation Right related to an Incentive Stock Option must be
granted at the same time such Option is granted. In the case of any Stock
Appreciation Right related to any Option, the Stock Appreciation Right or
applicable portion thereof shall terminate and no longer be exercisable upon the
termination or exercise of the related Option, except that a Stock Appreciation
Right granted with respect to less than the full number of Shares covered by a
related Option shall not be reduced until the exercise or termination of the
related Option exceeds the number of Shares not covered by the Stock
Appreciation Right. Any Option related to any Stock Appreciation Right shall no
longer be exercisable to the extent the related Stock Appreciation Right has
been exercised. The Committee may impose such conditions or restrictions on the
exercise of any Stock Appreciation Right as it shall deem appropriate; provided
that if the Committee does not set a term for a Stock Appreciation Right, it
shall have a term of ten years.

      SECTION 8. RESTRICTED STOCK.

      (a) ISSUANCE. A Restricted Stock Award shall be subject to restrictions
imposed by the Committee during a period of time specified by the Committee (the
"Restriction Period"). Restricted Stock Awards may be issued hereunder to
Participants, for no cash consideration or for such minimum consideration as may
be required by applicable law, either alone or in addition to other Awards
granted under the Plan. The provisions of Restricted Stock Awards need not be
the same with respect to each recipient.

      (b) REGISTRATION. Any Restricted Stock issued hereunder may be evidenced
in such manner as the Committee in its sole discretion shall deem appropriate,
including, without limitation, book entry registration or issuance of a stock
certificate or certificates. In the event any stock certificates are issued in
respect of shares of Restricted Stock awarded under the Plan, such certificate
shall be registered in the name of the Participant, and shall bear an
appropriate legend referring to the terms, conditions, and restrictions
applicable to such Award.

      (c) FORFEITURE. Except as otherwise determined by the Committee at the
time of grant or thereafter, upon termination of employment or services for any
reason during the restriction period, all Shares of Restricted Stock still
subject to restriction shall be forfeited by the Participant and reacquired by
the Company. Unrestricted Shares, evidenced in such manner as the Committee
shall deem appropriate, shall be issued to the grantee promptly after expiration
of the period of forfeiture, as determined or modified by the Committee.

                                      -9-
<PAGE>   10
      SECTION 9. PERFORMANCE AWARDS. Performance Awards may be issued hereunder
to Participants, for no cash consideration or for such minimum consideration as
may be required by applicable law, either alone or in addition to other Awards
granted under the Plan. The performance criteria to be achieved during any
Performance Period and the length of the Performance Period shall be determined
by the Committee upon the grant of each Performance Award. Except as provided in
Section 11, Performance Awards will be distributed only after the end of the
relevant Performance Period. Performance Awards may be paid in cash, Shares,
other property or any combination thereof, in the sole discretion of the
Committee at the time of payment. The performance levels to be achieved for each
Performance Period and the amount of the Award to be distributed shall be
conclusively determined by the Committee. Performance Awards may be paid in a
lump sum or in installments following the close of the Performance Period or, in
accordance with procedures established by the Committee, on a deferred basis.

      SECTION 10. OTHER STOCK UNIT AWARDS.

      (a) STOCK AND ADMINISTRATION. Other Awards of Shares and other Awards that
are valued in whole or in part by reference to, or are otherwise based on,
Shares or other property ("Other Stock Unit Awards") may be granted hereunder to
Participants, either alone or in addition to other Awards granted under the
Plan, and such other Stock Unit Awards shall also be available as a form of
payment in the settlement of other Awards granted under the Plan. Other Stock
Unit Awards may be paid in Shares, cash or any other form of property as the
Committee shall determine. Subject to the provisions of the Plan, the Committee
shall have sole and complete authority to determine the Employees of the Company
and its Affiliates and Non-Employee Directors to whom and the time or times at
which such Awards shall be made, the number of Shares to be granted pursuant to
such Awards, and all other conditions of the Awards. The provisions of Other
Stock Unit Awards need not be the same with respect to each recipient.

      (b) TERMS AND CONDITIONS. Subject to the provisions of the Plan and any
applicable Award Agreement, Awards and Shares subject to Awards made under this
Section 10 may not be sold, assigned, transferred, pledged, or otherwise
encumbered prior to the date on which the Shares are issued, or, if later, the
date on which any applicable restriction, performance, or deferral period
lapses. Shares (including securities convertible into Shares) subject to Awards
granted under this Section 10 may be issued for no cash consideration or for
such minimum consideration as may be required by applicable law. Shares
(including securities convertible into Shares) purchased pursuant to a purchase
right awarded under this Section 10 shall be purchased for such consideration as
the Committee shall in its sole discretion determine, which, except in the case
of Substitute Awards, shall not be less than the Fair Market Value of such
Shares or other securities as of the date such purchase right is awarded.

                                      -10-
<PAGE>   11
      SECTION 11. CHANGE IN CONTROL PROVISIONS.

      (a) IMPACT OF EVENT. Subject to Section 11(a)(v) and notwithstanding any
other provision of the Plan to the contrary, unless the Committee shall
determine otherwise at the time of grant with respect to a particular Award, in
the event of a Change in Control:

            (i) any Options and Stock Appreciation Rights outstanding as of the
date such Change in Control is determined to have occurred, and which are not
then exercisable and vested, shall become fully exercisable and vested to the
full extent of the origin grant;

            (ii) the restrictions and deferral limitations applicable to any
Restricted Stock shall lapse, and such Restricted Stock shall become free of all
restrictions and limitations and become fully vested and transferable to the
full extent of the original grant;

            (iii) all Performance Awards shall be considered to be earned and
payable in full, and any deferral or other restriction shall lapse and such
Performance Awards shall be immediately settled or distributed; and

            (iv) The restrictions and deferral limitations and other conditions
applicable to any Other Stock Unit Awards or any other Awards shall lapse, and
such Other Stock Unit Awards or such other Awards shall become free of all
restrictions, limitations, or conditions and become fully vested and
transferable to the full extent of the original grant.

            (v) Notwithstanding the foregoing, if in the event of a Corporate
Transaction the successor company assumes or substitutes for an Option or Stock
Appreciation Right, then each outstanding Option, Stock Appreciation Right or
share of Restricted Stock shall not be accelerated as described in Sections
11(a)(i) and (ii). For the purposes of this Section 11(a)(v), an Option or Stock
Appreciation Right shall be considered assumed or substituted for if following
the Corporate Transaction the award confers the right to purchase or receive,
for each Share subject to the Option or Stock Appreciation Right immediately
prior to the Corporate Transaction, the consideration (whether stock, cash, or
other securities or property) received in the Corporate Transaction by holders
of Shares for each Share held on the effective date of the transaction (and if
holders were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding shares); provided, however, that
if such consideration received in the Corporate Transaction is not solely common
stock of the successor company, the Committee may, with the consent of the
successor company, provide that the consideration to be received upon the
exercise of an Option or Stock Appreciation Right, for each Share subject
thereto, will be solely common stock of the successor company substantially
equal in fair market value to the per share consideration received by holders of
Shares in the Corporate Transaction. The determination of such substantial
equality of value of consideration shall be made by the Committee in its sole
discretion and its determination shall be conclusive and binding.

                                      -11-
<PAGE>   12
      (b) CHANGE IN CONTROL CASH-OUT. Notwithstanding any other provision of the
Plan, during the 60-day period from and after a Change in Control (the "Exercise
Period"), if the Committee shall determine at, or at any time after, the time of
grant, a Participant holding an Option or Stock Appreciation Right shall have
the right, whether or not the Option or Stock Appreciation Right is fully
exercisable and in lieu of the payment of the purchase price for the Shares
being purchased under the Option or Stock Appreciation Right and by giving
notices to the Company, to elect (within the Exercise Period) to surrender all
or part of the Option or Stock Appreciation Right to the Company and to receive
cash, within 30 days of such notice, in an amount equal to the amount by which
the Change in Control Price per Share on the date of such election shall exceed
the purchase price per Share under the Option or Stock Appreciation Right (the
"spread') multiplied by the number of Shares granted under the Option or Stock
Appreciation Right as to which the right granted under this Section 11(b) shall
have been exercised.

      SECTION 12. CODE SECTION 162(M) PROVISIONS.

      (a) Notwithstanding any other provision of the Plan, if the Committee
determines at the time Restricted Stock, a Performance Award or an Other Stock
Unit Award is granted to a Participant who is then an officer that such
Participant is, or is likely to be as of the end of the tax year in which the
Company would claim a tax deduction in connection with such Award, a Covered
Employee, then the Committee may provide that this Section 12 is applicable to
such Award.

      (b) If Restricted Stock, a Performance Award or an Other Stock Unit Award
is subject to this Section 12, then the lapsing of restrictions thereon and the
distribution of cash, Shares or other property pursuant thereto, as applicable,
shall be subject to the achievement of one or more objective performance goals
established by the Committee, which shall be based on the attainment of
specified levels of one or any combination of the following; net cash provided
by operating activities, earnings per share from continuing operations,
operating income, revenues, operating margins, return on operating assets,
return on equity, economic value added, stock price appreciation, total
stockholder return, cost control, strategic initiatives, market share, net
income, return on invested capital, or subscriber, cash management, or asset
management metrics, of the Company or the Affiliate or division of the Company
for or within which the Participant is primarily employed. Such performance
goals also may be based on the achievement of specified levels of Company
performance (or performance of an applicable Affiliate or division of the
Company) under one or more of the measures described above relative to the
performance of other corporations. Such performance goals shall be set by the
Committee within the time period prescribed by, and shall otherwise comply with
the requirements of, Section 162(m) of the Code, or any successor provision
thereto, and the regulations thereunder.

      (c) Notwithstanding any provision of the Plan other than Section 11, with
respect to any Restricted Stock, Performance Award or Other Stock Unit Award
that is subject to this Section 12, the Committee may adjust downwards, but not
upwards, the amount payable

                                      -12-
<PAGE>   13
pursuant to such Award, and the Committee may not waive the achievement of the
applicable performance goals except in the case of the death or disability of
the Participant.

      (d) The Committee shall have the power to impose such other restrictions
on Awards subject to this Section 12 as it may deem necessary or appropriate to
ensure that such Awards satisfy all requirements for "performance-based
compensation" within the meaning of Section 162(m)(4)(C) of the Code, or any
successor provision thereto.

      (e) Notwithstanding any provision of the Plan other than Section 4(c), no
Participant may be granted Options or Stock Appreciation Rights, or Restricted
Stock or Performance Awards subject to this Section 12 that are denominated in
Shares, in any calendar year period with respect to more than three million
(3,000,000) Shares, and the maximum dollar value payable with respect to
Performance Units and/or Other Stock Unit Awards that are valued with reference
to property other than Shares and granted to any Participant in any one calendar
year is $10,000,000.

      SECTION 13. AMENDMENTS AND TERMINATION. The Board may amend, alter,
suspend, discontinue, or terminate the Plan or any portion thereof at any time;
provided, however, that no such amendment, alteration, suspension,
discontinuation, or termination shall be made without (a) stockholder approval
if such approval is necessary to qualify for or comply with any tax or
regulatory requirement for which or with which the Board deems it necessary or
desirable to qualify or comply or (b) the consent of the affected Participant,
if such action would impair the rights of such Participant under any outstanding
Award. Notwithstanding anything to the contrary herein, the Committee may amend
the Plan in such manner as may be necessary so as to have the Plan conform to
local rules and regulations in any jurisdiction outside the United States.

      The Committee may amend the terms of any Award theretofore granted,
prospectively or retroactively, but no such amendment shall impair the rights of
any Participant without his or her consent. Any change or adjustment to an
outstanding Incentive Stock Option shall not, without the consent of the
Participant, be made in a manner so as to constitute a "modification" that would
cause such Incentive Stock Option to fail to continue to qualify as an Incentive
Stock Option. Notwithstanding the foregoing, any adjustments made pursuant to
Section 4(c) shall not be subject to these restrictions.

      SECTION 14. GENERAL PROVISIONS.

      (a) No Award, and no Shares subject to Awards described in Section 10 that
have not been issued or as to which any applicable restriction, performance, or
deferral period has not lapsed, may be sold, assigned, transferred, pledged, or
otherwise encumbered, except by will or by the laws of descent and distribution;
provided, however, that, if so determined by the Committee, a Participant may,
in the manner established by the Committee, designate a beneficiary to exercise
the rights of the Participant with respect to any Award upon the death of the
Participant. Each Award shall be exercisable, during the Participant's lifetime,
only by

                                      -13-
<PAGE>   14
the Participant or, if permissible under applicable law, by the Participant's
guardian or legal representative. Notwithstanding the foregoing, and subject to
Section 422 of the Code, the Committee, in its sole discretion, may permit a
Participant to assign or transfer an Award; provided, however, that an Award so
assigned or transferred shall be subject to all the terms and conditions of the
Plan and the instrument evidencing the Award.

      (b) No Employee or Participant shall have any claim to be granted any
Award under the Plan, and there is no obligation for uniformity of treatment of
Employees or Participants under the Plan.

      (c) The prospective recipient of any Award under the Plan shall not, with
respect to such Award, be deemed to have become a Participant, or to have any
rights with respect to such Award, until and unless such recipient shall have
executed an agreement or other instrument evidencing the Award and delivered a
copy thereof to the Company, and otherwise complied with the then applicable
terms and conditions.

      (d) Nothing in the Plan or any Award granted under the Plan shall be
deemed to constitute an employment or service contract or confer or be deemed to
confer on any Participant any right to continue in the employ or service of, or
to continue any other relationship with, the Company or any Affiliate or limit
in any way the right of the Company or any Affiliate to terminate a
Participant's employment or service or other relationship at any time, with or
without cause.

      (e) Except as provided in Section 12, the Committee shall be authorized to
make adjustments in performance award criteria or in the terms and conditions of
other Awards in recognition of unusual or nonrecurring events affecting the
Company or its financial statements or changes in applicable laws, regulations,
or accounting principles. The Committee may correct any defect, supply any
omission, or reconcile any inconsistency in the Plan or any Award in the manner
and to the extent it shall deem desirable to carry it into effect. In the event
that the Company shall assume outstanding employee benefit awards or the right
or obligation to make future such awards in connection with the acquisition of
or combination with another corporation or business entity, the Committee may,
in its discretion, make such adjustments in the terms of Awards under the Plan
as it shall deem appropriate.

      (f) The Committee shall have full power and authority to determine
whether, to what extent, and under what circumstances any Award shall be
canceled or suspended. In addition, all outstanding Awards to any Participant
shall be canceled if the Participant, without the consent of the Company, while
employed by the Company or after termination of such employment or service,
establishes a relationship with a competitor of the Company or engages in
activity that is in conflict with or adverse to the interest of the Company, as
determined under the Company's Non-Competition Guideline.

                                      -14-
<PAGE>   15
      (g) All certificates for Shares delivered under the Plan pursuant to any
Award shall be subject to such stock-transfer orders and other restrictions as
the Committee may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which the Shares are then listed, and any applicable federal or state securities
law, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

      (h) No Award granted hereunder shall be construed as an offer to sell
securities of the Company, and no such offer shall be outstanding, unless and
until the Committee in its sole discretion has determined that any such offer,
if made, would comply with all applicable requirements of the U.S. federal
securities laws and any other laws to which such offer, if made, would be
subject.

      (i) The Committee shall be authorized to establish procedures pursuant to
which the payment of any Award may be deferred. Subject to the provisions of the
Plan and any Award Agreement, the recipient of an Award (including, without
limitation, any deferred Award) may, if so determined by the Committee, be
entitled to receive, currently or on a deferred basis, cash dividends, or cash
payments in amounts equivalent to cash dividends on Shares ("dividend
equivalents"), with respect to the number of Shares covered by the Award, as
determined by the Committee, in its sole discretion, and the Committee may
provide that such amounts (if any) shall be deemed to have been reinvested in
additional Shares or otherwise reinvested.

      (j) Except as otherwise required in any applicable Award Agreement or by
the terms of the Plan, recipients of Awards under the Plan shall not be required
to make any payment or provide consideration other than the rendering of
services.

      (k) The Committee may delegate to a committee of one or more directors of
the Company or, to the extent permitted by Delaware law, to one or more officers
or a committee of officers the right to grant Awards to Employees who are not
officers or directors of the Company and to cancel or suspend Awards to
Employees who are not officers or directors of the Company.

      (l) The Company shall be authorized to withhold from any Award granted or
payment due under the Plan the amount of withholding taxes due in respect of an
Award or payment hereunder and to take such other action as may be necessary in
the opinion of the Company to satisfy all obligations for the payment of such
taxes. The Committee shall be authorized to establish procedures for election by
Participants to satisfy such obligation for the payment of such taxes by
delivery of or transfer of Shares to the Company (up to the employer's minimum
required tax withholding rate to the extent the Participant has owned the
surrendered shares for less than six months if such a limitation is necessary to
avoid a charge to the Company for financial reporting purposes), or by directing
the Company to retain Shares (up to the employer's minimum required tax
withholding rate) otherwise deliverable in connection with the Award.

                                      -15-
<PAGE>   16
      (m) Nothing contained in the Plan shall prevent the Board from adopting
other or additional compensation arrangements, subject to stockholder approval
if such approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases.

      (n) The validity, construction, and effect of the Plan and any rules and
regulations relating to the Plan shall be determined in accordance with the laws
of the State of Washington and applicable federal law.

      (o) If any provision of the Plan is or becomes or is deemed invalid,
illegal, or unenforceable in any jurisdiction, or would disqualify the Plan or
any Award under any law deemed applicable by the Committee, such provision shall
be construed or deemed amended to conform to applicable laws or if it cannot be
construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan, it shall be stricken and the
remainder Plan shall remain in full force and effect.

      (p) Awards may be granted to Participants who are foreign nationals or
employed outside the United States, or both, on such terms and conditions
different from those applicable to Awards to Employees employed in the United
States as may, in the judgment of the Committee, be necessary or desirable in
order to recognize differences in local law or tax policy. The Committee also
may impose conditions on the exercise or vesting of Awards in order to minimize
the Company's obligation with respect to tax equalization for Employees on
assignments outside their home country.

      SECTION 15. EFFECTIVE DATE OF PLAN. The Plan shall be effective as of June
[__], 2001.

      SECTION 16. TERM OF PLAN. The Plan shall have no fixed expiration date;
provided, however, that (a) no Incentive Stock Options may be granted more than
ten years after the later of (i) the adoption of the Plan by the Board and (ii)
the adoption by the Board of any amendment to the Plan that constitutes the
adoption of a new plan for purposes of Section 422 of the Code.

                                      -16-

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