Document:

<PAGE>   1
                                                                    EXHIBIT 10.6

                               INDEMNITY AGREEMENT

                  INDEMNITY AGREEMENT, dated as of December __, 2000 (as
modified, amended or supplemented from time to time, this "Agreement"), by WPS
II, Inc., a Delaware corporation ("Indemnitor"), and the persons listed on Annex
A (the "Guarantors") in favor of W.P. Stewart & Co., Ltd., a Bermuda corporation
("Indemnitee").

                              W I T N E S S E T H:

                  WHEREAS, Indemnitee, Indemnitor and certain of the Guarantors
concurrently herewith are entering into an underwriting agreement and an
international underwriting agreement, each dated the date hereof (the
"Underwriting Agreements"), among Indemnitee, the representatives of the several
underwriters in Schedule I thereto, Indemnitor and certain of the Guarantors, in
connection with the proposed public offering of shares of Indemnitee;

                  WHEREAS, as a condition to entering into the Underwriting
Agreements, the underwriters thereunder have required each of the Indemnitor and
the Guarantors to execute an indemnity agreement in favor of Indemnitee on the
terms set forth herein;

                  WHEREAS, on July 1, 1998, Indemnitee merged with W.P. Stewart
& Co., Inc., a Delaware corporation ("W.P. Stewart & Co., Inc."), with
Indemnitee as the surviving entity (the "Merger"); and

                  WHEREAS, in connection with the proposed sale of shares
pursuant to the Underwriting Agreements, Indemnitor and Indemnitee have been
advised by Nixon Peabody LLP, as their tax counsel and Lopez Edwards Frank &
Co., LLP, as their accountants at the time, that, as a result of Indemnitor's
status as an "S corporation" for U.S. federal income tax purposes at the time of
the Merger and W.P. Stewart & Co., Inc.'s status as a "qualified subchapter S
subsidiary" for U.S. federal income tax purposes at the time of the Merger,
Indemnitee has no liability, either primarily or as a successor
<PAGE>   2
entity, for taxes attributable to any gain or income that may have been realized
on or as a result of the Merger;

                  NOW THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                  Section 1. Indemnification.

                  (a) Indemnitor agrees to pay, indemnify, and hold Indemnitee
harmless from and against any and all (i) U.S. federal, state or local taxes
(collectively, "U.S. taxes" ) imposed on Indemnitee, whether as a primary
obligor or as a successor entity, including any related penalties, interest
(through the date of payment) and additions to tax, as a result of the Merger
because of a failure at the time of the Merger of either (a) Indemnitor to elect
or be eligible to elect treatment as an "S corporation" (within the meaning of
Section 1361(a) of the Internal Revenue Code of 1986, as amended (the "Code"))
for U.S. income tax purposes or (b) W.P. Stewart & Co., Inc. to elect or be
eligible to elect treatment as a "qualified subchapter S subsidiary" (within the
meaning of Section 1361(b)(3)(B) of the Code) for U.S. income tax purposes and
(ii) taxes imposed on Indemnitee, including any related penalties, interest and
additions to tax, as a result of any payment made or to be made to Indemnitee
pursuant to this Agreement (a liability described in clause (i) or (ii), a
"Covered Tax Liability"). Indemnitor also agrees to pay Indemnitee the amount of
any reasonable costs incurred by Indemnitee in connection with the imposition of
any Covered Tax Liability upon Indemnitee, including without limitation
reasonable costs incurred in contesting any such proposed liability (the
"Costs", and together with the Covered Tax Liabilities, the "Covered
Liabilities").

                  (b) Indemnitor shall not be required to make payment hereunder
in respect of a Covered Tax Liability prior to the earlier of (i) the date on
which Indemnitee ceases to have available to it and be pursuing reasonable means
to contest such liability and (ii) the date on which payment in respect of such
liability is made by Indemnitee, provided that, in the case of this clause (ii),
(x) Indemnitee shall have determined in its

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<PAGE>   3
reasonable good faith judgment, prior to making such payment, that such payment
must be made in order to prevent the risk that Indemnitee would be subject to
reputational, financial, legal or other material harm if it did not make such
payment prior to the time referred to in clause (i), and (y) the making of such
payment prior to the time referred to in clause (i) shall not materially impair
the ability of Indemnitee, Indemnitor or any Guarantor to prevail in a contest
of Indemnitee's liability for the amount paid. Indemnitor shall make payment in
respect of any Costs promptly following notice of such Costs from Indemnitee.

                  (c) Interest, at the applicable Federal rate (as defined for
purposes of Section 1274(d) of the Code), payable semiannually on January 1 and
July 1 of each year, shall accrue and be payable by Indemnitor on any Covered
Liability and on any accrued but unpaid interest under this Section 1(c) for the
period (i) in the case of a Covered Liability, from the date on which such
Covered Liability is paid by or on behalf of Indemnitee to the date on which
Indemnitee receives an indemnity payment hereunder that corresponds to such
Covered Liability and (ii) in the case of accrued but unpaid interest, from the
date on which such interest was due and payable to the date on which the
Indemnitee receives actual payment of such accrued interest.

                  Section 2.  Guarantee.

                  (a) Scope of Guarantee. The Guarantors, severally but not
jointly, irrevocably guarantee the payment to Indemnitee of any and all Covered
Liability (i) to the extent Indemnitee has not recovered any such Covered
Liability from Indemnitor within one year from the date on which Indemnitee
gives notice to Indemnitor of such Covered Liability; provided, however, that
during such one year period, Indemnitee has used its commercially reasonable
efforts to collect such payment from Indemnitor and, to the extent that
Indemnitee has any reasonable basis to collect any such payment from the counsel
or accountants that advised Indemnitor in connection with the Merger and
Indemnitee reasonably believes that there is a meaningful prospect that an
effort to collect from such counsel or accountants would

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be successful, from such counsel and accountants, or (ii) in the event that
Indemnitor has been dissolved without making such payment.

                  The guarantee obligation of each Guarantor shall be limited as
follows: (i)each Guarantor's liability for a Covered Liability shall be limited
to the product of (x) the amount of the Covered Liability and (y)such
Guarantor's percentage ownership of the capital stock of Indemnitor immediately
prior to the Merger as set forth opposite such Guarantor's name in Annex A
hereto; (ii) the amount referred to in clause (i)(x) of this paragraph shall be
reduced by the amount of any portion of the Covered Liability that is recovered
by Indemnitee other than from a Guarantor (net of the reasonable costs incurred
by Indemnitee in obtaining any such recovery); and (iii) each Guarantor shall be
liable for interest accruing under Section 1(c) hereof only to the extent that
such interest relates to the portion of a Covered Liability for which such
Guarantor is responsible under clause (i) of this paragraph.

                  (b)  Right to Contest; Settlement.

                  (i) Promptly after Indemnitee has received a notice of a
         commencement of any action relating to a Covered Tax Liability,
         Indemnitee shall notify Indemnitor and each Guarantor in writing, as
         provided in Section 8, of the commencement thereof; but the omission to
         so notify Indemnitor and each Guarantor shall not relieve any of them
         from any liability that it may have to Indemnitee hereunder except to
         the extent that such omission causes actual prejudice to such party.

                  (ii) If any such action shall be brought against Indemnitee,
         or if Indemnitee chooses to contest any Covered Liability, the
         Indemnitor and each Guarantor shall be entitled to participate in such
         action or contest, and Indemnitee shall, in the exercise of its
         reasonable good faith judgment, take account of the views of those of
         the Indemnitor and the Guarantors that choose to participate. If
         Indemnitee has received full payment of the Covered

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         Liability that is the subject of any such action or contest, including
         all costs that have arisen from such action or contest, then for so
         long as Indemnitee continues to be paid in full, upon demand, all
         reasonable costs and liabilities arising out of such action or contest,
         the Indemnitor and the Guarantors may control the conduct of such
         action or contest with respect to such Covered Liability with counsel
         satisfactory to Indemnitee.

                  (iii) For so long as Indemnitor and the Guarantors remain in
         compliance with their obligations under this Agreement, Indemnitee may
         not without the written consent of either Indemnitor or at least
         two-thirds of the Guarantors' total direct and indirect ownership of
         the capital stock of Indemnitee immediately after the Merger settle any
         claim relating to a Covered Tax Liability, other than a Covered Tax
         Liability arising out of a payment made pursuant to this Agreement,
         provided, however, that the Indemnitor and the Guarantors may not
         unreasonably withhold such consent.

                  (c) Subrogation. The Guarantors will not exercise any rights
against Indemnitor that they may acquire by way of subrogation or by any
indemnity, reimbursement or other agreement until any and all Covered Liability
to Indemnitee shall have been indefeasibly paid in full.

                  (d) Continuing Guarantee. The guarantee by the Guarantors
hereunder shall remain in full force and effect and be binding upon the
Guarantors until the Termination Date (as defined below).

                  (e) Conditions of Guarantee. Each Guarantor agrees that its
obligations under this Agreement shall be unconditional and shall not be
discharged prior to the Termination Date except by complete payment of the
amount guaranteed, irrespective of any claim as to the validity, regularity or
enforceability of this Agreement or the lack of authority of Indemnitor to
execute or deliver this Agreement; or any change in or amendment to this
Agreement; or any waiver or consent by Indemnitee with respect to any provisions
hereof; or (except as provided

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<PAGE>   6
in Section 3(a)) the absence of any action to enforce this Agreement against
Indemnitor or the recovery of any judgment against Indemnitor or of any action
to enforce a judgment against Indemnitor under this Agreement; or any similar
circumstance that might otherwise constitute a legal or equitable discharge or
defense of a guarantor generally. Each Guarantor hereby waives diligence,
presentment, demand on Indemnitor for payment or otherwise (except as provided
in this Agreement), filing of claims, requirement for a prior proceeding against
Indemnitor and protest or notice (except as provided in this Agreement) with
respect to amounts payable by Indemnitor. If at any time payment by Indemnitor
(or any other party) under this Agreement is rescinded or must be otherwise
restored or returned by Indemnitee upon the insolvency, bankruptcy,
reorganization or similar treatment of Indemnitor or any Guarantor or otherwise,
each Guarantor's obligations, if any, hereunder with respect to such payment
shall be reinstated upon such restoration or return being made by Indemnitee.

                  Section 3.  Satisfaction of Obligations; Lock-up.

                  (a) Any obligation of the Indemnitor or any Guarantor under
this Agreement to make a payment shall be satisfied in cash or cash equivalents.

                  (b) Indemnitor agrees with Indemnitee, during the period from
the date of this Agreement to the Termination Date, to continue to own at least
7,000,000 shares of Indemnitee (as adjusted for any stock dividends,
combinations, splits, recapitalizations or similar corporate actions with
respect to such shares), free and clear of any liens, encumbrances, equities or
claims and not to directly or indirectly offer, sell, contract to sell, or
otherwise dispose of (which term shall include any distribution of such shares
upon dissolution of Indemnitor to any stockholders of Indemnitor) such shares.

                  Section 4. Termination of Obligations of Indemnitor and
Guarantors. All payment and performance obligations of the Indemnitor and the
Guarantors

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hereunder shall terminate on the date (the "Termination Date") that is the first
to occur of the following:

                  (i)      the date on which the Covered Liabilities have been
                           paid in the full to, or on behalf of, the Indemnitee
                           by the counsel or accountants that advised Indemnitee
                           on the matters that gave rise to such liability, the
                           Indemnitor, any Guarantor or Guarantors or any
                           combination thereof;

                  (ii)     a final agreement with the Internal Revenue Service
                           is reached or an unappealable judicial decision is
                           issued, that determines that no Covered Tax Liability
                           exists, and payment in full of any Costs incurred by
                           Indemnitee as of such date as set forth in clause (i)
                           above; or

                  (iii)    expiration of the applicable statute of limitations
                           with respect to the Covered Tax Liability and payment
                           in full of any Costs incurred by Indemnitee as of
                           such date of expiration as set forth in clause (i)
                           above.

                  Section 5. No Waiver; Cumulative Rights. No failure on the
part of Indemnitee to exercise, and no delay in exercising, any right, remedy or
power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise by Indemnitee of any right, remedy or power hereunder preclude
any other or future exercise of any other right, remedy or power. Each and every
right, remedy and power hereby granted to Indemnitee or allowed it by law or
other agreement shall be cumulative and not exclusive the one of any other, and
may be exercised by Indemnitee from time to time.

                  Section 6. Subrogation to Rights Against Third Party Advisors.
Following full payment of the amounts due hereunder, the Indemnitor and
Guarantors shall be subrogated to all of Indemnitee's claims against the

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<PAGE>   8
attorneys and accountants that advised Indemnitee on matters relating to the
Covered Liabilities.

                  Section 7. Amendments. The terms of this Agreement shall not
be altered, modified, amended, supplemented or terminated in any manner
whatsoever, except by written instrument signed by each of the parties hereto.

                  Section 8. Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. No party to this Agreement may assign or delegate any of
its rights or obligations hereunder without the prior written consent of the
other party, and any purported assignment or delegation without such consent
shall be void.

                  Section 9. Notices. All notices under this Agreement shall be
in writing, and if to Indemnitor or any Guarantor shall be delivered or sent by
mail, courier or facsimile transmission to Indemnitor or such Guarantor at its
address set forth in Annex A; and if to Indemnitee shall be delivered or sent by
mail, courier or facsimile transmission to Trinity Hall, 43 Cedar Avenue, P.O.
Box HM 2905, Hamilton HM LX, Bermuda, Facsimile (441) 296-6823, Attention:
Managing Director. Each notice given pursuant to this Section 9 shall be
effective (i) if sent by certified mail (return receipt requested), 10 days
after being deposited in the international mail, postage prepaid; (ii) if given
by facsimile, when such facsimile notice is transmitted and verbal confirmation
of receipt is obtained; or (iii) if delivered by courier, 5 days after being
given to such courier for delivery. Either party may, by notice given in
accordance with this Section 9, specify a change in the address at which notices
to it are to be delivered.

                  Section 10. Headings. The headings in this Agreement are for
purposes of reference only and shall not affect the meaning hereof.

                  Section 11. Counterparts. This Agreement may be executed in
any number of counterparts and by the different parties hereto on separate
counterparts, each

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of which when so executed and delivered shall be an original, but all the
counterparts shall together constitute one and the same instrument.

                  Section 12. Choice of Law. This Agreement shall be governed
by, and construed in accordance with, the internal laws of the State of New
York.

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<PAGE>   10
                  IN WITNESS WHEREOF, the parties hereto have caused this
Indemnity Agreement to be executed as of the date first above written.

                                        W.P. STEWART & CO., LTD.,
                                        as Indemnitee

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        WPS II, INC.,
                                        as Indemnitor

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        Each Guarantor:

                                        John A. Allison

                                        ________________________________________

                                        David Altman

                                        ________________________________________

                                        Marilyn G. Breslow

                                        ________________________________________

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<PAGE>   11
                                        Alexander Farman-Farmaian

                                        ________________________________________

                                        Joseph S. Frelinghuysen

                                        ________________________________________

                                        Philip D. Jennison

                                        ________________________________________

                                        Robert Kahn

                                        ________________________________________

                                        Stephen E. Memishian

                                        ________________________________________

                                        C. Graydon Rogers

                                        ________________________________________

                                        Robert L. Rohn

                                        ________________________________________

                                        John C. Russell

                                        ________________________________________

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<PAGE>   12
                                        Robert L. Schwartz

                                        ________________________________________

                                        SCHWARTZ TRUST -
                                        FBO James Schwartz

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        SCHWARTZ TRUST -
                                        FBO Jonathan Schwartz

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        SCHWARTZ TRUST -
                                        FBO Kathryn Schwartz

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        Harry W. Segalas

                                        ________________________________________

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<PAGE>   13
                                        STEWART TRUST 1987 -
                                        FBO Gregory S. Stewart

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        STEWART TRUST 1992 -
                                        FBO Gregory S. Stewart

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        STEWART TRUST 1987 -
                                        FBO Jeffrey R. Stewart

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        STEWART TRUST 1992 -
                                        FBO Jeffrey R. Stewart

                                        By:_____________________________________
                                           Name:
                                           Title:

                                      -13-
<PAGE>   14
                                        STEWART TRUST 1987 -
                                        FBO Lisa M. Stewart

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        STEWART TRUST 1992 -
                                        FBO Lisa M. Stewart

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        STEWART TRUST 1987 -
                                        FBO William P. III Stewart

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        STEWART TRUST 1992 -
                                        FBO William P. III Stewart

                                        By:_____________________________________
                                           Name:
                                           Title:

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<PAGE>   15
                                        Daniel W. Strickberger

                                        ________________________________________

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<PAGE>   16
                  ACKNOWLEDGMENT FOR THOSE WHO SIGN IN NEW YORK

STATE OF NEW YORK                   )
                                    :  ss.:
COUNTY OF                                  )

                  On this         day of                       in the year 2000
before me, the undersigned, personally appeared
             , personally known to me or proved to me on the basis of
satisfactory evidence to be the individual(s) whose name(s) is(are) subscribed
to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their capacity(ies); and that by his/her/their signature(s) on
the instrument, the individual(s), or the person(s) upon behalf of which the
individual(s) acted, executed the instrument.

                                                  ------------------------------
                                                           Notary Public

               ACKNOWLEDGMENT FOR THOSE WHO SIGN OUTSIDE NEW YORK

State, District of Columbia, territory       )
possession or foreign country                : ss.:
                                                   )

                  On the         day of                       in the year 2000
before me, the undersigned, personally appeared
             , personally known to me or proved to me on the basis of
satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed
to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their capacity(ies), that by his/her/their signature(s) on the
instrument, the individual(s), or the person upon behalf of which the
individual(s) acted, executed the instrument, and that such individual made such
appearance before the undersigned in the
(insert the city or other political subdivision and the
<PAGE>   17
state or country or other place the acknowledgment was taken).

                                                  ------------------------------
                                                           Notary Public
<PAGE>   18
                                     ANNEX A

                                   GUARANTORS

<TABLE>
<CAPTION>
Name                                       Address for                                  Percentage
                                           Notices                                     Ownership in
                                                                                       Capital Stock
                                                                                      of WPS II. Inc.
                                                                                        Immediately
                                                                                       Prior to the
                                                                                          Merger
<S>                                        <C>                                        <C>
John A. Allison                            435 East 52nd                                  3.2867%
                                           Street, Apt. 11B,
                                           New York, NY
                                           10021

David Altman                               29 Black Birch                                 2.2864%
                                           Road, Scotch
                                           Plains, NJ 07076

Marilyn G. Breslow                         10 Horseguard                                  1.9006%
                                           Lane, Scardale,
                                           NY 10583

Alexander Farman-                          161 East 79th                                  0.6087%
Farmaian                                   Street, New York,
                                           NY 10021

Joseph S.                                  Box 270,Gladstone                              1.2346%
Frelinghuysen                              NJ 07934

Philip D. Jennison                         3010 Grand Bay                                 2.9021%
                                           Blvd., Unit 481,
                                           Long Boat Key, FL
                                           34228

Robert L. Kahn                             40 East 89th St.,                              9.1455%
                                           New York, NY
                                           10028

Stephen E. Memishian                       450 Round Hill                                 3.3438%
                                           Road, Greenwich
                                           CT 06831

C. Graydon Rogers                                                                         3.7880%
</TABLE>
<PAGE>   19
<TABLE>
<S>                                        <C>                                        <C>
Robert L. Rohn                             62 Stephen Mather                              2.5150%
                                           Road, Darien, CT
                                           06820

John C. Russell                            "Point of View"                                0.7145%
                                           16 East Point
                                           Lane, Hamilton
                                           Parish, Bermuda
                                           FL04

Robert L. Schwartz                         405 Grace Church                              10.7853%
                                           Street, Rye, NY
                                           10580

Schwartz Trust - FBO                       450 Grace Church                               1.0717%
James Schwartz                             Street, Rye, NY
                                           10580

Schwartz Trust - FBO                       450 Grace Church                               1.0717%
Jonathan Schwartz                          Street, Rye, NY
                                           10580

Schwartz Trust - FBO                       450 Grace Church                               1.0717%
Kathryn Schwartz                           Street, Rye, NY
                                           10580

Harry W. Segalas                           815 Park Ave.,                                 2.5150%
                                           Apt. 14C, New
                                           York, NY 10021

Stewart Trust 1987 -                       527 Madison Ave.,                              9.8699%
FBO Gregory S.                             New York, NY
Stewart                                    10022

Stewart Trust 1992 -                       527 Madison Ave.,                              0.0000%
FBO Gregory S.                             New York, NY
Stewart                                    10022

Stewart Trust 1987 -                       527 Madison Ave.,                              8.9553%
FBO Jeffrey R.                             New York, NY
Stewart                                    10022

Stewart Trust 1992 -                       527 Madison Ave.,                              0.9146%
FBO Jeffrey R.                             New York, NY
Stewart                                    10022
</TABLE>
<PAGE>   20
<TABLE>
<S>                                        <C>                                        <C>
Stewart Trust 1987 -                       527 Madison Ave.,                              9.8699%
FBO Lisa M. Stewart                        New York, NY
                                           10022
Stewart Trust 1992 -                       527 Madison Ave.,                              0.0000%
FBO Lisa M. Stewart                        New York, NY
                                           10022

Stewart Trust 1987 -                       527 Madison Ave.,                              9.8699%
FBO William P. III                         New York, NY
Stewart                                    10022

Stewart Trust 1992 -                       527 Madison                                    0.0000%
FBO William P. III                         Ave., New York,
Stewart                                    NY 10022

Daniel B.                                  30 Petersville                                 4.0023%
Strickberger                               Road, Mount
                                           Kisco, NY 10549
</TABLE><PAGE>   1
                                                                     Exhibit 4.1

                                                                               1

                            ARTICLES OF INCORPORATION
                             OF DEUTSCHE TELEKOM AG

                              I. GENERAL PROVISIONS

                                    SECTION 1
                      FIRM, HEADQUARTERS AND FINANCIAL YEAR

(1) The stock corporation - hereinafter referred to as the "Corporation" - shall
be designated Deutsche Telekom AG.

(2) Its headquarters shall be in Bonn.

(3) Financial year shall be the calendar year.

                                    SECTION 2
                                     OBJECT

(1) Object of the enterprise is activity in all areas of telecommunications and
in related areas in Germany and abroad.

(2) The Corporation shall be entitled to enter into all other transactions and
take all other measures deemed appropriate to serve the object of the enterprise
pursuant to subpara. (1). It may also set up, acquire and participate in other
undertakings of the same or similar kind in Germany and abroad, as well as run
such undertakings or confine itself to the administration of its participation.
It may spin off its operations wholly or partly to affiliated undertakings.

                                    SECTION 3
                      COMMISSIONING THE DEUTSCHE BUNDESPOST
                   FEDERAL POSTS AND TELECOMMUNICATIONS AGENCY

The Corporation shall arrange for matters within the meaning of Section 3(2) of
the Federal Posts and Telecommunications Agency Act to be carried out by the
Deutsche Bundespost Federal Posts and Telecommunications Agency. For this
purpose it shall enter into non-gratuitous business management contracts with
the Federal Agency.

                                    SECTION 4
                                  ANNOUNCEMENTS

Announcements of the Corporation shall be published in the Federal Gazette.
<PAGE>   2
                                                                               2

                          II. SHARE CAPITAL AND SHARES

                                    SECTION 5
                      AMOUNT AND BREAKDOWN OF SHARE CAPITAL

(1) The share capital of the Corporation shall amount to E 7,755,786,327.04 (in
words: seven billion, seven hundred and fifty-five million, seven hundred and
eighty-six thousand, three hundred and twenty-seven euros and four cents). It
shall be divided into 3,029,604,034 (in words: three billion, twenty-nine
million, six hundred and four thousand and thirty-four) individual no par value
shares.

(2) The Board of Management shall be authorized to increase the capital stock
(share capital) with the approval of the Supervisory Board by up to a nominal
E 3,865,093,163.52 by issuing up to 1,509,802,017 ordinary registered shares for
non-cash contributions in the period up to May 25, 2005. The authorization may
be used for partial amounts. The subscription rights of shareholders shall be
precluded. The Board of Management shall be authorized, subject to the approval
of the Supervisory Board, to determine the further content of share rights and
the conditions under which shares are issued. (Approved capital 2000).

(3) The Board of Management is empowered to increase the share capital one time
or several times by up to E 12,800,000 with the approval of the Supervisory
Board in the context of the Deutsche Telekom Stock Option Plan by May 25, 2005,
by issuing up to 5,000,000 new individual no-par value registered shares for
cash or non-cash contributions. The subscription right of shareholders shall be
precluded. Only one bank shall be permitted to subscribe the new shares. It
shall purchase the shares with the obligation to offer them for purchase to the
plan participants with subscription rights at a placement price still to be set,
which shall correspond to the opening market price of the T-Share in XETRA
trading of Deutsche Borse AG on the purchase date. The group of plan
participants with subscription rights and the number of shares to be offered to
them in each case shall be set by the Board of Management of Deutsche Telekom
AG. To the extent members of the Board of Management of Deutsche Telekom AG are
to be offered shares, this determination and the offer to purchase shares shall
be the exclusive responsibility of the Supervisory Board of Deutsche Telekom AG.
The new shares shall participate in profits starting at the beginning of the
financial year in which they are created. The Board of Management is empowered
to determine the further conditions of the stock issue with the consent of the
Supervisory Board. To the extent members of the Board of Management are
affected, the further conditions of the stock issue shall be determined by the
Supervisory Board.

(4) The Supervisory Board shall be empowered to change subpara (1) if this is
necessary due to capital increases from approved capital.

(5) The share capital is conditionally increased by up to E 64,000,000, divided
into up to 25,000,000 shares. The contingent capital increase serves exclusively
to grant subscription rights to members of the Board of Management and
executives of the Company, as well as Board of Management members, managing
board members, and other executives of second- and lower-tier associated
companies on the basis of a Stock Option Plan as provided for in the resolution
of the Shareholders' Meeting of
<PAGE>   3
                                                                               3

May 25, 2000. It shall be implemented only to such extent as use is made of
those subscription rights. The new shares shall participate in profits starting
at the beginning of the financial year in which they are issued. If new shares
are issued after the end of a financial year but before the Company's regular
Shareholders' Meeting that resolves regarding the appropriation of net income
for the financial year ended, the new shares shall participate in the profits
starting at the beginning of the financial year ended.

(6) The shares shall be registered shares.

(7) Where a resolution on capital increase does not stipulate whether the new
shares be bearer or registered shares, they shall be registered shares.

(8) The Board of Management shall stipulate the form of share certificates and
the profit sharing and renewal certificates. A right of shareholders to
certification of their shares and profit shares is precluded unless
certification is necessary according to the rules of a stock exchange where the
stock is listed. The Company shall be entitled to issue stock certificates
embodying individual shares or several shares (global certificates).

(9) In any capital increase, the distribution of profits in relation to new
shares may be determined in derogation of Section 60 of the Stock Corporation
Law.

                              III. MANAGEMENT BOARD

                                    SECTION 6
                       COMPOSITION AND RULES OF PROCEDURE

(1) The Board of Management shall consist of two members at least. For the rest
the Supervisory Board shall determine the number of Board of Management members.

(2) Board of Management members shall be outstanding experts on
telecommunications, the economy or business management. A member of the Board of
Management may only join the Supervisory Board, the Administrative Board or the
Advisory Council of a business enterprise if the Supervisory Board has given its
consent.

(3) The Supervisory Board may appoint a Chairman as well as a Deputy Chairman of
the Board of Management. Deputy members of the Board of Management may be
appointed.

(4) The Board of Management shall adopt by unanimous decision of all its members
its Rules of Procedure which shall require the consent of the Supervisory Board.
<PAGE>   4
                                                                               4

                                    SECTION 7
                             OUTSIDE REPRESENTATION

The Corporation shall be legally represented by two members of the Board of
Management or by one member of the Board of Management jointly with a
Prokurist*. Deputy members of the Board of Management shall have the same rights
as ordinary members of the Board of Management with regard to the power of
representation.

                                    SECTION 8
                               BUSINESS MANAGEMENT

(1) The Board of Management shall manage its business in accordance with the
Rules of Procedure and the Schedule of Responsibilities approved by the
Supervisory Board.

(2) The Board of Management shall inform the Supervisory Board on time before
entering into any legal or actual commitments if the Corporation or a company in
which it has a direct or indirect majority share, acquires a participating
interest of over 25% of another company, increases or sells it in part or
totally. The same procedure shall apply if the nominal capital, the object of
the enterprise or the influence of the Federal Government on such a company is
changed. The above-mentioned facts shall encompass also the conclusion of
control agreements, transformation, convergence as well as dissolution of a
company.

                                    SECTION 9
                    BUSINESS TRANSACTIONS REQUIRING APPROVAL

(1) The Rules of Procedure of the Supervisory Board shall determine which
transactions the Board of Management may carry out solely with the prior consent
of the Supervisory Board. Apart from the Rules of Procedure the following
transaction shall require the prior consent of the Supervisory Board:

1        Transactions and measures which affect the corporate structure or
         corporate strategy or result in a major change of the corporate
         development. These include the opening up of new lines of business and
         the cessation or any major restriction of important lines of business.

2        Establishment, dissolution, acquisition or sale of companies and
         participating interests as well as changed shares in participating
         interests.

3        Filling a position on the Supervisory Board, Board of Directors or
         another Supervisory Body of a company in which Deutsche Telekom AG has
         a direct or indirect majority share and whose nominal capital is over
         E 2.5 million or which yields an annual revenue of over E 25 million.

--------
* A "Prokurist" is a holder of a general commercial power of attorney called
"Prokura", Section 48 Commercial Code.
<PAGE>   5
                                                                               5

(2) The Supervisory Board may at any time make any further transactions
contingent upon its consent. It may give revocable consent in advance with
regard to a specific group of transactions in general or with regard to an
individual transaction meeting certain requirements.

                              IV. SUPERVISORY BOARD

                                   SECTION 10
                                  COMPOSITION,
                    TENURE OF OFFICE, RETIREMENT FROM OFFICE

(1) The Supervisory Board shall consist of twenty members, specifically ten
members from the shareholders and ten members from the employees. The
Supervisory Board members from the shareholders shall be elected by the
shareholders' meeting and the Supervisory Board members from the employees shall
be elected in accordance with the provisions of the Codetermination Act.

(2) Supervisory Board members shall be elected for the period until termination
of the shareholders' meeting ruling on discharge of the Supervisory Board for
the fourth financial year following commencement of tenure of office. The
financial year in which tenure of office commences shall not be counted. The
shareholders' meeting may determine, with regard to the shareholder members,
shorter tenure of office at the time of their election. Election of a successor
to a shareholder member who has resigned prior to expiry of his/her tenure of
office shall be made, unless the successor's tenure of office is otherwise
determined by the shareholders' meeting, for the remainder of the retired
member's tenure of office.

(3) With the election of a Supervisory Board Member a substitute member who will
become a member of the Supervisory Board may be elected at the same time if the
Supervisory Board member resigns prior to expiry of his/her tenure of office
without a successor having been elected. The office of a substitute who has
advanced to the Supervisory Board shall cease to exist as soon as a successor to
the retired Supervisory Board member has been elected, at the latest upon expiry
of the tenure of office of the retired Supervisory Board member.

(4) Members and substitute members of the Supervisory Board may resign their
office by written notice to the Chairman of the Supervisory Board or to the
Board of Management, giving the specified notice of four weeks.

                                   SECTION 11
                          CHAIRMAN AND DEPUTY CHAIRMAN

(1) The Supervisory Board shall elect from its members in accordance with
Section 27(1) and (2) of the Codetermination Act a Chairman and a Deputy
Chairman for the tenure of office as laid down in Section 10(2) of these
Articles of Incorporation. Election shall take place at the close of the
shareholders' meeting in which the Supervisory Board members from the
shareholders, to be elected by the shareholders' meeting,
<PAGE>   6
                                                                               6

are appointed, in a meeting which has not been specially convened. If the
Chairman or the Deputy Chairman resigns prior to expiry of his tenure of office,
the Supervisory Board shall hold a fresh election to cover the remainder of the
retired person's tenure of office.

(2) Immediately following election of the Chairman and the Deputy Chairman the
Supervisory Board shall establish, for the purpose of discharging the function
set out in Section 31(3) of the Codetermination Act, a committee composed of the
Chairman, the Deputy Chairman and one member elected by the employee members and
one member elected by the shareholder members by a majority of votes cast.

                                   SECTION 12
                               RULES OF PROCEDURE

The Supervisory Board shall adopt its Rules of Procedure within the limits of
mandatory legal provisions and the provisions of these Articles of
Incorporation.

                                   SECTION 13
                                   CONVOCATION

(1) Supervisory Board meetings shall be convened by the Chairman or, in the
event of his being prevented from doing so, by the Deputy Chairman, giving
notice of two weeks. In establishing such period of notice, the day on which the
invitation is dispatched and the day on which the meeting is to take place shall
not be counted. In urgent cases the convening party may shorten the prescribed
period and convene the meeting orally, by telephone, telex, telegraph or
telefax.

(2) The invitation shall state the venue, date and time of the meeting as well
as the individual items on the agenda. Any amendments to the agenda shall be
communicated prior to expiry of the convening period.

(3) The Chairman may, for an important reason, cancel or postpone a meeting
convened. He shall be entitled to interrupt, for a short period, any meeting
already in progress. The Chairman shall decide on longer interruptions subject
to a divergent Supervisory Board majority decision.
<PAGE>   7
                                                                               7

                                   SECTION 14
                               PASSING RESOLUTIONS

(1) Supervisory Board resolutions shall be passed, as a rule, in meetings. The
Chairman shall determine the order of discussion of agenda items as well as the
manner and order of voting. Resolutions on agenda items not communicated in due
time may only be passed where none of the members objects to such procedure. In
such event absent members shall be given the opportunity, within an appropriate
period as determined by the Chairman, to object to the resolution or to cast
their vote subsequently; such resolution shall only become effective when no
absent member has objected within the prescribed period.

(2) Outside meetings, resolutions may be passed by votes cast in writing, by
telegraph, telex or telefax where all members have declared their agreement to
the manner of voting proposed by the Chairman or participate in such manner.
Such resolutions shall be recorded in writing by the Chairman and transmitted to
all members. Resolutions passed in this manner shall be entered in the minutes
on the next Supervisory Board meeting.

(3) The Supervisory Board shall constitute a quorum when at least half of the
total number of members participates in person or by a written casting of votes
(Section 108(3) of the Stock Corporation Law) in the passing of a resolution. A
member is also deemed to have participated in the passing of a resolution when
s/he abstains from voting.

(4) The Chairman may, upon a motion from two members, postpone for a maximum of
four weeks passing a resolution on individual or on all items of the agenda when
the same number of shareholder members and employee members would not
participate or where there would otherwise be substantial reason for such
postponement. The Chairman shall not be authorized to postpone the meeting
again.

(5) Supervisory Board resolutions shall require a majority of votes cast, unless
another majority is made mandatory by law. Where voting results in a tie, the
Chairman shall have two votes in fresh voting on the same matter if this ballot
also results in a tie. The second vote may also be cast in writing in accordance
with (3) above. The Chairman of the Supervisory Board shall only exercise his
right to a second vote after being advised, at the close of the first ballot, by
the committee in charge of the matter in question. The new vote shall not take
place prior to expiry of a period of two weeks. This period may be shortened by
agreement.

(6) The Chairman and - in the event of his being prevented from doing so - the
Deputy Chairman shall be empowered to make, on behalf of the Supervisory Board,
all declarations of intent required to implement the resolutions of the
Supervisory Board and its committees and to receive statements for the
Supervisory Board.
<PAGE>   8
                                                                               8

                                   SECTION 15
                                   COMMITTEES

The regulations of Sections 13 and 14 shall apply accordingly with regard to
committee procedure. The introduction and exercise of the right to a second vote
shall be regulated in the Rules of Procedure of the Supervisory Board.

                                   SECTION 16
                                PLEDGE OF SECRECY

Supervisory Board members shall - even after retirement from office - observe
secrecy with regard to confidential data and secrets of the Corporation,
specifically trade and operating secrets to which they have gained access
through serving on the Supervisory Board.

                                   SECTION 17
                                  REMUNERATION

(1) The members of the Supervisory Board shall receive remuneration amounting to
E 25,000 annually payable at the end of the financial year in addition to
reimbursement of their expenses.

(2) The Chairman of the Supervisory Board shall receive twice these amounts, and
a Deputy Chairman one and a half times these amounts. Members of the Supervisory
Board who were not in office during the entire financial year shall receive one
twelfth of the remuneration for each month or part thereof that they hold a
seat. Members of the Supervisory Board shall receive an attendance fee amounting
to E 200 for each meeting of the Supervisory Board or its committees that they
have attended.

(3) The Company shall reimburse value-added tax paid on the remuneration and
expenses.

(4) Subparagraphs 1 - 3 shall apply for the first time for the 1999 financial
year.

                            V. SHAREHOLDERS' MEETING

                                   SECTION 18
                              VENUE AND CONVOCATION

(1) The shareholders' meeting shall take place at the headquarters of the
Corporation, or at the location of a German stock exchange or in a German city
with over 500,000 inhabitants.

(2) Convocation shall be published in the Federal Gazette at least one month
prior to the date by which shareholders have to register for the shareholders'
<PAGE>   9
                                                                               9

meeting (Section 19); the day of publication and the last date by which
shareholders have to register for the shareholders' meeting shall not be
counted.

                                   SECTION 19
                      RIGHT TO PARTICIPATE AND VOTING RIGHT

(1) Eligible to participate in and to exercise their voting rights at the
shareholders' meeting shall be those shareholders who have registered for the
shareholders' meeting on time in writing or by fax with the Board of Management
at the seat of the company and who are included in the share register when their
registration for the shareholders' meeting is received. There must be at least
two days between receipt of the registration and the date of the shareholder's
meeting.

(2) The shareholder may also issue a voting rights authorization in conformance
with the statutory regulations by way of electronic mail with usual and ordinary
proof of authenticity as stipulated by the Company."

                                   SECTION 20
                    CHAIRMANSHIP OF THE SHAREHOLDERS' MEETING

(1) The shareholders' meeting shall be chaired by the Chairman of the
Supervisory Board or, in case of him being prevented, by another Supervisory
Board member representing the shareholders to be determined by the Supervisory
Board.

(2) The Chairman shall run the meeting. He shall determine the order of
discussion of agenda items as well as the manner and order of voting.

                                   SECTION 21
                               PASSING RESOLUTIONS

(1) Each individual no par value share shall grant one vote in the shareholders'
meeting.

(2) Resolutions shall, unless mandatory legal provisions stipulate otherwise, be
passed by a simple majority of votes cast and, where the law prescribes a
majority shareholding in addition to a majority vote, by a simple majority of
share capital represented at such time as the resolution is passed.
<PAGE>   10
                                                                              10

                         VI. ANNUAL FINANCIAL STATEMENT
                          AND APPROPRIATION OF PROFITS

                                   SECTION 22
                           ANNUAL FINANCIAL STATEMENT
                       AND ORDINARY SHAREHOLDERS' MEETING

(1) The Board of Management shall, in the first three months of the financial
year, draw up and submit to the Supervisory Board the annual financial statement
and the status report for the previous year. The Board of the Management must
submit the proposal on appropriation of the net profit for the year to the
Supervisory Board at the same time.

(2) After receipt of the report from the Supervisory Board the Board of
Management shall convene without undue delay the ordinary shareholders' meeting
which shall take place within the first eight months of each financial year. It
shall rule on discharge of the Board of Management and the Supervisory Board, on
the choice of auditor and on appropriation of the net profit for the year.

(3) The Board of Management and the Supervisory Board shall be empowered, at the
time of adoption of the annual financial statement, to allocate to other
reserves wholly or in part the profit for the year remaining after deduction of
the amounts to be allocated to the legal reserves and of any loss carried
forward. Allocating a larger part than half of the profit for the year shall not
be permitted where the other reinvested earnings would exceed half of the share
capital following allocation.

(4) The net profit for the year shall be distributed among the shareholders
unless the shareholders' meeting rules on different appropriation.

                            VII. FEDERAL AUDIT OFFICE

                                   SECTION 23
                              FEDERAL AUDIT OFFICE

The Federal Audit Office shall have powers according to Section 54 of the Law on
Budgetary Principles.

                         VIII. COMMENCEMENT OF BUSINESS

                                   SECTION 24
                            COMMENCEMENT OF BUSINESS

Deutsche Telekom AG business shall commence on 1 January 1995. As from that
date, Deutsche Bundespost TELEKOM acts shall be deemed pursued for the account
of Deutsche Telekom AG.

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