Document:

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                                                                    EXHIBIT 4-AG

                          SIXTH SUPPLEMENTAL INDENTURE

                                     between

                             HERCULES INCORPORATED,
                                    as Issuer

                                       and

                            THE CHASE MANHATTAN BANK,
                                   as Trustee

                          Dated as of February 9, 2000
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                                TABLE OF CONTENTS
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ARTICLE 1

SECTION 1.01.  Amended Definitions.......................................      2
SECTION 1.02.  Additional Definitions....................................      2
SECTION 1.03.  Section 1.01(h)...........................................      3
SECTION 1.04.  Deleted Definition........................................      3
SECTION 1.05.  Amendment of the Subordinated Notes.......................      3
SECTION 1.06.  Application of Articles 1, 2 and 3........................      3

ARTICLE 2

SECTION 2.01.  Amendment of Interest Rate Calculation on the
         Subordinated Notes..............................................      3

ARTICLE 3

SECTION 3.01.  Remarketing...............................................      7

ARTICLE 4

SECTION 4.01.  Ratification of Base Indenture, the First Supplemental
         Indenture, the Second Supplemental Indenture, the Third
         Supplemental Indenture and the Fifth Supplemental Indenture:
         Sixth Supplemental Indenture Controls...........................     11
SECTION 4.02.  Trustee Not Responsible for Recitals......................     12
SECTION 4.03.  Governing Law.............................................     12
SECTION 4.04.  Severability..............................................     12
SECTION 4.05.  Counterparts..............................................     12
SECTION 4.06.  Terms Defined.............................................     12
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         SIXTH SUPPLEMENTAL INDENTURE, dated as of February 9, 2000 (the "SIXTH
SUPPLEMENTAL INDENTURE"), between Hercules Incorporated, a Delaware corporation,
as issuer (the "COMPANY"), and The Chase Manhattan Bank, a New York banking
corporation, as trustee (the "TRUSTEE").

         WHEREAS, the Company and the Trustee are parties to the Junior
Subordinated Debentures Indenture dated as of November 12, 1998 between the
Company and the Trustee (the "BASE INDENTURE"), as supplemented by a First
Supplemental Indenture dated as of November 12, 1998 between the Company and the
Trustee (the "FIRST SUPPLEMENTAL INDENTURE"), a Second Supplemental Indenture
dated as of July 6, 1999 (the "SECOND SUPPLEMENTAL INDENTURE"), a Third
Supplemental Indenture dated as of October 25, 1999 (the "THIRD SUPPLEMENTAL
INDENTURE"), a Fifth Supplemental Indenture dated as of January 24, 2000 (the
"FIFTH SUPPLEMENTAL INDENTURE" and together with the Base Indenture, the First
Supplemental Indenture, the Second Supplemental Indenture, the Third
Supplemental Indenture and this Sixth Supplemental Indenture, the "INDENTURE");

         WHEREAS, the Company executed and delivered the Base Indenture to the
Trustee to provide for the issuance of the Company's unsecured junior
subordinated debentures (the "DEBENTURES") to be issued from time to time in one
or more series as might be determined by the Company under the Indenture, in an
unlimited aggregate principal amount which may be authenticated and delivered as
provided in the Base Indenture;

         WHEREAS, pursuant to the terms of the Indenture in the First
Supplemental Indenture, the Company provided for the establishment of a new
series of its Debentures known as its Auction Rate Reset Junior Subordinated
Notes Series A (the "SUBORDINATED NOTES");

         WHEREAS, the Indenture provides that the Company and the Trustee may
amend the Indenture, with the consent of each Holder of any Debenture affected
thereby, to provide for, among other things, changes in the stated maturity and
interest rate of that series of Debentures;

         WHEREAS, the Company and the Trustee desire to modify certain
provisions of the Indenture to extend the maturity date and change the interest
rate of the Subordinated Notes and to provide for remarketing of the
Subordinated Notes in certain circumstances;

         WHEREAS, all things necessary to make this Sixth Supplemental Indenture
a valid indenture and agreement according to its terms have been done;
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         NOW THEREFORE, in consideration of the purchase and acceptance of
the Subordinated Notes by the Holder thereof, and for the purpose of amending
and restating certain terms of the Indenture relating to the stated maturity,
interest rate and remarketing of the Subordinated Notes, the Company covenants
and agrees with the Trustee as follows:

                                    ARTICLE 1

         SECTION 1.01.  Amended Definitions.  The definition of "Maturity Date"
contained in Section 1.01 of the Second Supplemental Indenture is hereby
amended to read in its entirety as follows:

                  ""MATURITY DATE" means February 9, 2002; provided, that in the
         event of a successful Remarketing of the Subordinated Notes or the
         Preferred Securities, as the case may be, the Maturity Date shall be
         the Remarketed Redemption Date; and provided, further, that, in
         accordance with Section 10.02(a)(iv), in the event the Company elects
         to pay the outstanding principal of and accrued and unpaid interest on
         the Subordinated Notes upon receipt of the Remarketing Notice, and
         notifies the Remarketing Agent of such election within five Business
         Days thereafter, the Maturity Date shall be the date eight Business
         Days after receipt of the Remarketing Notice."

         SECTION 1.02. Additional Definitions. Section 1.01 of the First
Supplemental Indenture is hereby amended by inserting the following definitions
in the appropriate alphabetical order:

                  ""AFFILIATED BIDDER" has the meaning set forth in Section
10.02(b)."

                  ""DATE OF DETERMINATION" has the meaning set forth in Section
2.05(b)."

                  ""PRE-REMARKETING INTEREST PAYMENT DATE" has the meaning set
         forth in Section 2.05(b)."

                  ""PRE-REMARKETING REGULAR RECORD DATE" has the meaning set
         forth in Section 2.05(c)."

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                  ""REMARKETED REDEMPTION DATE" means the later of (i) the first
anniversary of the Remarketing Settlement Date on which Replacement Securities
are issued, and (ii) February 9, 2002."

                  ""REMARKETING NOTICE" has the meaning set forth in Section
10.02(a)(i)."

                  ""REQUESTING HOLDERS" has the meaning set forth in Section
10.02(a)(i)."

         SECTION 1.03. Section 1.01(h). The term "ASSOCIATED PERSON" is hereby
added to the list of defined terms contained in Section 1.01(h) of the First
Supplemental Indenture.

         SECTION 1.04.  Deleted Definition.  The term "MATURITY EXTENSION DATE"
is hereby deleted in its entirety from Section 1.01(h) of the First Supplemental
Indenture.

         SECTION 1.05. Amendment of the Subordinated Notes. The Company shall
execute replacement Subordinated Notes in the form attached hereto as Exhibit A
to reflect the amended terms provided for in this Sixth Supplemental Indenture,
and the Trustee shall authenticate and make such new Subordinated Notes
available for delivery to the Holders of the Subordinated Notes upon surrender
of the prior certificates therefor. The surrendered prior certificates
representing the Subordinated Notes shall be canceled by the Trustee and shall
no longer be outstanding.

         SECTION 1.06. Application of Articles 1, 2 and 3. The provisions of
Article 1, Article 2 and Article 3 hereof shall apply to the Subordinated Notes
and the certificates therefor shall be appropriately amended.

                                    ARTICLE 2

         SECTION 2.01.  Amendment of Interest Rate Calculation on the
Subordinated Notes.  Section 2.05 of the First Supplemental Indenture is hereby
amended to read in its entirety as follows:

                  "SECTION 2.05. Interest. (a) Interest on the principal amount
         of each Subordinated Note will accrue and be payable at a rate (the
         "INTEREST RATE") per annum equal to

                       (i) from and including November 12, 1998 to but excluding
                  February 9, 2000, LIBOR plus 175 basis points;

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                      (ii) from and including February 9, 2000 to but excluding
                  the earlier of (A) the Remarketing Settlement Date on which
                  Replacement Notes are issued and (B) the date such principal
                  amount is paid, LIBOR plus 150 basis points;

                     (iii) from and including the Remarketing Settlement Date on
                  which Replacement Notes are issued to but excluding the date
                  such principal amount is paid, the Winning Bid Rate; and

                      (iv) notwithstanding clauses (i), (ii) and (iii) above, if
                  the Company fails to pay the principal amount on the date such
                  amount becomes due, then from and including such due date to
                  but excluding the date such principal amount is paid, the
                  applicable Interest Rate in effect on the due date, compounded
                  quarterly, but only to the extent permitted by applicable law.

                  Interest that is not paid when due will bear additional
         interest thereon compounded quarterly at the applicable Interest Rate
         in effect on the due date specified above (to the extent permitted by
         applicable law). The term "INTEREST", as used herein, includes any such
         additional interest unless otherwise stated.

          (b) Until the Remarketing Settlement Date on which Replacement Notes
         are issued, interest on the Subordinated Notes will be payable
         quarterly in arrears (A) on February 12, May 12, August 12 and November
         12 of each year, commencing February 12, 1999 and (B) on such
         Remarketing Settlement Date (each, a "PRE-REMARKETING INTEREST PAYMENT
         DATE"), and will accrue from and including the most recent date to
         which interest has been paid or, if no interest has been paid, from
         November 12, 1998, to but excluding the related Pre-Remarketing
         Interest Payment Date, except as otherwise described below.

                  The Interest Rate in effect for the period from and including
         November 12, 1998 to but excluding February 12, 1999 shall be the rate
         determined by the Calculation Agent two London Banking Days prior to
         November 12, 1998 and shall equal LIBOR plus 175 basis points. The
         Interest Rate in effect from and including February 12, 1999 to but
         excluding February 9, 2000, for each quarterly period from and
         including the immediately preceding Pre-Remarketing Interest Payment
         Date to but excluding the applicable Pre-Remarketing Interest Payment
         Date, shall be determined by the Calculation Agent two London Banking
         Days prior to such immediately preceding Pre-Remarketing Interest
         Payment Date (a "DATE OF DETERMINATION") and shall equal LIBOR plus 175
         basis points.

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         The Interest Rate in effect thereafter, for each quarterly period from
         and including the immediately preceding Pre-Remarketing Interest
         Payment Date to but excluding the applicable Pre-Remarketing Interest
         Payment Date, shall be determined by the Calculation Agent two London
         Banking Days prior to such immediately preceding Pre-Remarketing
         Interest Payment Date and shall equal LIBOR plus 150 basis points. The
         amount of interest payable on February 12, 2000 shall reflect the pro
         rata application of the two Interest Rates applicable to the
         calculation period for such interest payment for each day on which the
         applicable Interest Rate was in effect. The amount of interest payable
         for any quarterly period shall be computed on the basis of a 360-day
         year of twelve 30-day months. Except as provided in the last sentence
         of this paragraph, the amount of interest payable for any period
         shorter than a full quarterly period for which interest is computed
         will be computed on the basis of the actual number of days elapsed per
         30-day month. If a Pre-Remarketing Interest Payment Date is not a
         Business Day, then such Pre-Remarketing Interest Payment Date will be
         the next succeeding Business Day, except if such Business Day is in the
         next succeeding calendar month, such Pre-Remarketing Distribution Date
         will be the immediately preceding Business Day.

                  All percentages resulting from any calculations on the
         Subordinated Notes will be rounded, if necessary, to the nearest one
         hundred-thousandth of a percentage point, with five one-millionths of a
         percentage point rounded upward (e.g., 9.876545% (or .09876545) being
         rounded to 9.87655% (or .0987655)), and all dollar amounts used in or
         resulting from such calculation will be rounded to the nearest cent
         (with one-half cent being rounded upward).

                  (c) Interest shall be paid to the Person in whose name such
         Subordinated Note or any predecessor Subordinated Note is registered on
         the books and records of the Company at the close of business on the
         Regular Record Date for such interest installment, which shall be
         fifteen (15) days prior to a Pre-Remarketing Interest Payment Date (the
         "PRE-REMARKETING REGULAR RECORD DATE").

                  (d) From and including the Remarketing Settlement Date on
         which Replacement Notes are issued, interest on the Replacement Notes
         will be payable quarterly in arrears (A) on February 12, May 12, August
         12 and November 12 of each year, commencing on the first such date
         following such Remarketing Settlement Date and (B) on the Maturity Date
         (each, an "INTEREST PAYMENT DATE"), and will accrue from the most
         recent date to which interest has been paid or, if no interest has been
         paid, from and including such Remarketing Settlement Date, to but
         excluding the

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         related Interest Payment Date, except as otherwise described below. The
         amount of interest payable for any quarterly period shall be computed
         on the basis of a 360-day year of twelve 30-day months. Except as
         provided in the last sentence of this paragraph, the amount of interest
         payable for any period shorter than a full quarterly period for which
         interest is computed will be computed on the basis of the actual number
         of days elapsed per 30-day month. If an Interest Payment Date is not a
         Business Day, then such Interest Payment Date will be postponed to the
         next succeeding Business Day (and without any interest or other payment
         in respect of any such delay); provided, that if such Business Day is
         in the next succeeding calendar month, such Interest Payment Date will
         be the immediately preceding Business Day.

                  (e) Interest shall be paid to the Person in whose name the
         Subordinated Note or any predecessor Subordinated Note is registered on
         the books and records of the Company, at the close of business on the
         Regular Record Date for such interest installment, which, in respect of
         (i) Subordinated Notes of which the Property Trustee is the Holder or
         (ii) a Global Subordinated Note, shall be the close of business on the
         Business Day next preceding that Interest Payment Date (the "REGULAR
         RECORD DATE"). If the Subordinated Notes are not held by the Property
         Trustee and are not represented by a Global Subordinated Note, the
         Regular Record Date for such interest installment shall be fifteen (15)
         days prior to that Interest Payment Date.

                  (f) If, at any time while the Property Trustee is the Holder
         of any Subordinated Notes, the Trust or the Property Trustee is
         required to pay any taxes, duties, assessments or governmental charges
         of whatever nature (other than withholding taxes) imposed by the United
         States, or any other taxing authority, then, in any such case, the
         Company will pay as additional interest ("ADDITIONAL INTEREST") on the
         Subordinated Notes held by the Property Trustee, such additional
         amounts as shall be required so that the net amounts received and
         retained by the Trust and the Property Trustee after paying such taxes,
         duties, assessments or other governmental charges will be equal to the
         amounts the Trust and the Property Trustee would have received had no
         such taxes, duties, assessments or other government charges been
         imposed."

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                                    ARTICLE 3

         SECTION 3.01.  Remarketing.  (a) Article 10 of the First Supplemental
Indenture is hereby amended to read in its entirety as follows:

                                   "ARTICLE 10
                             REMARKETING; RESET RATE

                  SECTION 10.01. Effectiveness of this Article; Incorporation of
         Remarketing Agreement. (a) Sections 10.02 and 10.04 shall become
         effective if and only if the Subordinated Notes have been distributed
         to the holders of the Trust Securities prior to Remarketing.
         Notwithstanding the foregoing, on the Remarketing Settlement Date
         (except in the case of a Failed Remarketing), the certificates
         representing the Subordinated Notes held by the Property Trustee shall
         be exchanged for certificates representing the Replacement Notes.

                  (b) Every Person, by virtue of having become a Holder in
         accordance with the terms of this Agreement, shall be deemed to have
         expressly assented and agreed to the terms of, and shall be bound by,
         this First Supplemental Indenture, including the terms of Exhibit B.
         Exhibit B is hereby incorporated in and expressly made a part of this
         First Supplemental Indenture.

                  SECTION 10.02.  Remarketing Procedure.

                  (a) (i) Subject to Section 10.04, the holders of a majority in
         principal amount of the Subordinated Notes (the "REQUESTING HOLDERS")
         have the right to require Remarketing of the Subordinated Notes at any
         time. The Requesting Holders may exercise this right by delivering a
         written notice to the Remarketing Agent at any time requesting a
         Remarketing of the Subordinated Notes. Upon the receipt of such notice,
         the Remarketing Agent shall immediately deliver a written notice to the
         Company on behalf of the Requesting Holders (the "REMARKETING NOTICE").
         If the Requesting Holders exercise their right to require the
         Remarketing of the Subordinated Notes, the Reset Date shall be the
         sixth Business Day (the "EXPECTED RESET DATE") after the date on which
         the Remarketing Notice is received by the Company.

                           (ii) Notwithstanding Section 10.02(a)(i):

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                                    (A) the Company may, by notice to the
                           Remarketing Agent, direct that the Reset Date be
                           delayed if the Company believes it will be unable to
                           meet the conditions to Remarketing in the absence of
                           such a delay; and

                                    (B) the Remarketing Agent may, by notice to
                           the Company, direct that the Reset Date be delayed if
                           the Remarketing Agent believes that a Remarketing
                           will not be successful in the absence of such a
                           delay;

         provided that the Company and the Remarketing Agent, in either such
         event, will use their reasonable best efforts to establish a delayed
         Reset Date that is within five Business Days after the Expected Reset
         Date, but in no event later than the 15th Business Day following the
         date on which the related Remarketing Notice was received, or the 20th
         Business Day in the case of a Renewed Remarketing (as hereinafter
         defined) to which the provisions of Section 10.04 apply (as applicable,
         the "FINAL RESET DATE").

                           (iii) If the Company and the Remarketing Agent have
                  not agreed, on or prior to the sixth Business Day preceding
                  the Final Reset Date, to a Reset Date that is not later than
                  the Final Reset Date, a Failed Remarketing shall be deemed to
                  have occurred.

                           (iv) Notwithstanding the provisions of this Article
                  10, upon receipt of a Remarketing Notice the Company shall
                  have the right, in its sole discretion, to elect to pay the
                  outstanding principal of and accrued and unpaid interest on
                  the Subordinated Notes, rather than proceed with the
                  Remarketing. The Company shall make such election by sending
                  written notice, within five Business Days after the receipt of
                  the Remarketing Notice, to the Remarketing Agent and the
                  Trustee. If the Company makes such election, it shall pay the
                  outstanding principal of and accrued and unpaid interest on
                  the Subordinated Notes to the Holders thereof on the date
                  eight Business Days after receipt of the Remarketing Notice.

                  (b) The Company shall, by notice to the Remarketing Agent no
         later than five Business Days prior to the Reset Date, select and
         specify three Reference Corporate Dealers. By 3:00 p.m., New York City
         time, on the Reset Date, the Remarketing Agent shall request Bids from
         such Reference Corporate Dealers. The Remarketing Agent or an Affiliate
         or Associated Person thereof (any such person, an "AFFILIATED BIDDER")
         may, at its option, enter a Bid. The Remarketing Agent shall disclose
         to the

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         Company the Bids obtained and determine the lowest Bid Rate from among
         the Bids obtained on the Reset Date (the "WINNING BID RATE"). By
         approximately 4:30 p.m., New York City time, on the Reset Date, the
         Remarketing Agent shall notify the Company and the Trustee of the
         Winning Bid Rate. If on a Reset Date, Bids are not submitted by at
         least two Reference Corporate Dealers, or if the lowest Bid submitted
         would result in a Winning Bid Rate in excess of the rate permitted by
         applicable law, the Remarketing shall be deemed to be a Failed
         Remarketing on the corresponding Remarketing Settlement Date. The
         Winning Bid Rate determined by the Remarketing Agent, absent manifest
         error, shall be binding and conclusive upon the holders of the
         Subordinated Notes, the Company and the Trust.

                  (c) On the Reset Date, the Remarketing Agent shall designate
         as the Secondary Purchaser (the "SECONDARY PURCHASER") the Reference
         Corporate Dealer providing the Bid containing the Winning Bid Rate. If
         the Winning Bid Rate is specified in the Bids submitted by two or more
         bidders, the Remarketing Agent shall, in consultation with the Company,
         designate one of such bidders as the Secondary Purchaser.

                  (d) On the Reset Date, the Secondary Purchaser shall enter
         into a Secondary Purchase Agreement for the purchase by such Secondary
         Purchaser at the Remarketing Price of the aggregate principal amount of
         Subordinated Notes, with an Interest Rate equal to the Winning Bid Rate
         and with a Maturity Date on the Remarketed Redemption Date.

                  (e) If a Remarketing has occurred pursuant to this Section
         10.02 but settlement of the purchase and sale of the Subordinated Notes
         does not occur on the corresponding Remarketing Settlement Date, then,
         unless the provisions of Section 10.04 with respect to a Renewed
         Remarketing shall apply, a Failed Remarketing shall be deemed to have
         occurred on such Remarketing Settlement Date.

                  (f) At the time and in the manner specified in the Secondary
         Purchase Agreement, the Secondary Purchaser shall pay on the
         Remarketing Settlement Date to the Remarketing Agent on behalf of the
         Holders of the Subordinated Notes an amount of cash equal to the
         Remarketing Price.

                  (g) Unless otherwise agreed among the Remarketing Agent, the
         Paying Agent and any Former Holder, the Remarketing Agent shall
         promptly pay the Remarketing Price to the Paying Agent, acting solely
         as agent for the Former Holders, and the Paying Agent shall pay such
         amount to the Former Holders in the manner specified in Section 2.02 of
         the Base

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         Indenture for payments of interest and as is otherwise specified
         herein, except that the Record Date therefor shall be the Business Day
         immediately preceding the Remarketing Settlement Date.

                  (h) The obligation of the Remarketing Agent to make payment to
         the Former Holders in connection with the Remarketing shall be limited
         to the extent that the Secondary Purchaser has delivered the
         Remarketing Price therefor to the Remarketing Agent.

                  (i) Any outstanding Subordinated Notes purchased on the
         Remarketing Settlement Date shall be deemed to be transferred to the
         Secondary Purchaser and shall be replaced in the manner provided in
         Section 10.02(j). On and after the Remarketing Settlement Date (except
         in the event of (y) a Failed Remarketing or (z) a failure by the
         Company to pay on the Remarketing Settlement Date all accrued interest
         on the Subordinated Notes to such Remarketing Settlement Date), (A) the
         Company shall make no further payments to, and the Company shall have
         no further obligations under this First Supplemental Indenture (or the
         Indenture) in respect of, the holders of such replaced Subordinated
         Notes (the "FORMER HOLDERS"), (B) the Company shall only be obligated
         to make payments to the holders of Replacement Notes and (C) the
         Subordinated Notes of the Former Holders shall no longer represent an
         obligation of the Company, but shall only represent a right to receive
         the proceeds of the Remarketing from the Paying Agent.

                  (j) The Company shall cause replacement certificates
         evidencing the remarketed Subordinated Notes (or, if the Preferred
         Securities have been remarketed, appropriately revised Subordinated
         Notes) to be executed by the Company and authenticated by the Trustee
         in accordance with the provisions of Section 2.03 of the Base Indenture
         (the "REPLACEMENT NOTES"). If the Subordinated Notes were Remarketed,
         the Replacement Notes shall be delivered to the purchaser or purchasers
         of the remarketed Subordinated Notes in accordance with the terms of
         the Secondary Purchase Agreement. If the Preferred Securities were
         Remarketed, the Replacement Notes shall be delivered to the Property
         Trustee of the Trust.

                  SECTION 10.03. Reset of Interest Rate and Maturity Date. From
         and including the Remarketing Settlement Date on which Replacement
         Notes are issued, if the Subordinated Notes are remarketed pursuant to
         Article 10 or the Preferred Securities are remarketed pursuant to
         Article 6 of the Trust Agreement, the Interest Rate on the Subordinated
         Notes shall be the Winning Bid Rate and the Maturity Date shall be the
         Remarketed Maturity Date.

                                       10
<PAGE>   13
                  SECTION 10.04. Renewed Remarketing. If a Remarketing has
         occurred pursuant to Section 10.02 that would be a Failed Remarketing
         pursuant to Section 10.02(e), because the purchase and sale of the
         Subordinated Notes do not take place on the corresponding Remarketing
         Settlement Date, and the reason for such failure shall, in the good
         faith determination of the Remarketing Agent, result from facts or
         circumstances that are not due to the action or inaction of the
         Company, then the provisions of Section 10.02 shall apply to a second
         remarketing (a "RENEWED REMARKETING") of the Subordinated Notes, except
         that the Expected Reset Date shall be the sixth Business Day following
         such corresponding Remarketing Settlement Date; provided that upon the
         occurrence of a Failed Remarketing pursuant to Section 10.02, only one
         Renewed Remarketing may occur pursuant to this Section 10.04, and no
         Renewed Remarketing shall occur after the Final Reset Date.

                  SECTION 10.05. Failed Remarketing. The Remarketing Agent shall
         give notice of any Failed Remarketing on the date such Failed
         Remarketing occurs, or is deemed to occur, by 4:00 p.m., New York City
         time, on the date of such Failed Remarketing, to the Company, the
         Trustee and the Paying Agent."

                                    ARTICLE 4

         SECTION 4.01. Ratification of Base Indenture, the First Supplemental
Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture
and the Fifth Supplemental Indenture: Sixth Supplemental Indenture Controls. The
Base Indenture, as supplemented by the First Supplemental Indenture, the Second
Supplemental Indenture, the Third Supplemental Indenture, the Fifth Supplemental
Indenture and this Sixth Supplemental Indenture, is in all respects ratified and
confirmed, and this Sixth Supplemental Indenture shall be deemed part of the
Base Indenture in the manner and to the extent herein and therein provided. The
provisions of this Sixth Supplemental Indenture shall supersede the provisions
of the Base Indenture, the First Supplemental Indenture, the Second Supplemental
Indenture, the Third Supplemental Indenture and the Fifth Supplemental Indenture
to the extent the Base Indenture, the First Supplemental Indenture, the Second
Supplemental Indenture, the Third Supplemental Indenture or the Fifth
Supplemental Indenture is inconsistent herewith.

         SECTION 4.02. Trustee Not Responsible for Recitals. The recitals herein
contained are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no

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<PAGE>   14
representation as to the validity or sufficiency of this Sixth Supplemental
Indenture.

         SECTION 4.03. Governing Law. This Sixth Supplemental Indenture shall be
governed by and construed in accordance with the laws of the State of New York,
as applied to contracts made and performed within the State of New York, without
regard to its principles of conflicts of laws.

         SECTION 4.04. Severability. If any provision in the Base Indenture, the
First Supplemental Indenture, the Second Supplemental Indenture, the Third
Supplemental Indenture, the Fifth Supplemental Indenture, this Sixth
Supplemental Indenture or in the Subordinated Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

         SECTION 4.05. Counterparts. The parties may sign any number of copies
of this Sixth Supplemental Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement. Any signed copy shall be
sufficient proof of this Sixth Supplemental Indenture.

         SECTION 4.06.  Terms Defined.  All terms defined elsewhere in the
Indenture shall have the same meanings when used herein.

                                       12
<PAGE>   15
         IN WITNESS WHEREOF, the parties hereto have caused this Sixth
Supplemental Indenture to be duly executed as of the day and year first above
written.

                                                  HERCULES INCORPORATED,
                                                           as Issuer

                                                  By: __________________________
                                                       Name:
                                                       Title:

                                                  THE CHASE MANHATTAN BANK,
                                                         as Trustee

                                                  By: __________________________
                                                       Name:
                                                       Title:
<PAGE>   16
                                                                       EXHIBIT A

                            FORM OF SUBORDINATED NOTE

                                SUBORDINATED NOTE

THE SECURITY EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS A "QUALIFIED
INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (2)
AGREES THAT IT WILL NOT PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE
TO SALES OF THE SECURITY EVIDENCED HEREBY UNDER RULE 144(K) UNDER THE SECURITIES
ACT (OR ANY SUCCESSOR PROVISION) RESELL OR OTHERWISE TRANSFER THE SECURITY
EVIDENCED HEREBY EXCEPT (A) TO HERCULES INCORPORATED OR ANY SUBSIDIARY THEREOF,
(B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT OR (C) TO A SECONDARY PURCHASER (AS DEFINED IN THE AMENDED AND
RESTATED TRUST AGREEMENT OF HERCULES TRUST V DATED AS OF NOVEMBER 12, 1998 (AS
AMENDED FROM TIME TO TIME, THE "TRUST AGREEMENT")) THAT HAS ENTERED INTO A
SECONDARY PURCHASE AGREEMENT (AS DEFINED IN THE TRUST AGREEMENT) WITH THE TRUST,
(3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED
HEREBY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND AND
(4) AGREES WITH RESPECT TO ANY TRANSFER OCCURRING PRIOR TO THE REMARKETING DATE
ON WHICH REPLACEMENT NOTES ARE ISSUED TO ANY PERSON OTHER THAN THE PROPERTY
TRUSTEE, TO PROVIDE TO THE INDENTURE TRUSTEE A DULY EXECUTED CERTIFICATE
SUBSTANTIALLY TO THE EFFECT OF CLAUSES (1), (2) AND (3), ABOVE. AT THE REQUEST
OF THE HOLDER, THIS LEGEND WILL BE REMOVED AFTER THE EXPIRATION OF THE HOLDING
PERIOD APPLICABLE TO THE SALE OF THE SECURITY EVIDENCED HEREBY UNDER RULE 144(K)
UNDER THE SECURITIES ACT.

FROM AND AFTER THE REMARKETING SETTLEMENT DATE ON WHICH REPLACEMENT NOTES ARE
ISSUED TO ANY PERSON OTHER THAN THE PROPERTY TRUSTEE, THIS CERTIFICATE SHALL
REPRESENT ONLY THE RIGHT TO RECEIVE THE REMARKETING PRICE, AS PROVIDED IN THE
TRUST AGREEMENT, AND SHALL NO LONGER REPRESENT AN OBLIGATION OF THE COMPANY.

                                       A-1
<PAGE>   17
THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL
INCOME TAX PURPOSES. THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE
DATE AND YIELD TO MATURITY WILL BE PROMPTLY MADE AVAILABLE UPON REQUEST TO THE
VICE PRESIDENT - TAXES (AT (302) 594-5887) OR THE SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER (AT (302) 594-5175), HERCULES INCORPORATED, HERCULES
PLAZA, 1313 NORTH MARKET STREET, WILMINGTON, DE 19894-0001.

                                       A-2
<PAGE>   18
No. SN-03                                                     CUSIP NO. ________

                              HERCULES INCORPORATED

              AUCTION RATE RESET JUNIOR SUBORDINATED NOTE SERIES A

                 Hercules Incorporated, a Delaware corporation (the "COMPANY",
which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to The Chase Manhattan
Bank, as Property Trustee, for Hercules Trust V, or registered assigns, the
principal sum of Two Hundred Six Million Two Hundred Thousand Dollars
($206,200,000) on February 9, 2002, or such other date as may be provided
pursuant to the terms of the Indenture.

         (a) Interest on the principal amount of each Subordinated Note will
accrue and be payable at a rate (the "INTEREST RATE") per annum equal to:

                           (i) from and including November 12, 1998 to but
                  excluding February 9, 2000, LIBOR plus 175 basis points;

                           (ii) from and including February 9, 2000 to but
                  excluding the earlier of (A) the Remarketing Settlement Date
                  on which Replacement Notes are issued and (B) the date such
                  principal amount is paid, LIBOR plus 150 basis points;

                           (iii) from and including the Remarketing Settlement
                  Date on which Replacement Notes are issued to but excluding
                  the date such principal amount is paid, the Winning Bid Rate;
                  and

                           (iv) notwithstanding clauses (i), (ii) and (iii)
                  above, if the Company fails to pay the principal amount on the
                  date such amount becomes due, then from and including such due
                  date to but excluding the date such principal amount is paid,
                  the applicable Interest Rate in effect on the due date,
                  compounded quarterly, but only to the extent permitted by
                  applicable law.

                 Interest that is not paid when due will bear additional
interest thereon compounded quarterly at the applicable Interest Rate in effect
on the due date specified above (to the extent permitted by applicable law). The
term "INTEREST", as used herein, includes any such additional interest unless
otherwise stated.

                                       A-3
<PAGE>   19
         (b) Until the Remarketing Settlement Date on which Replacement Notes
are issued, interest on the Subordinated Notes will be payable quarterly in
arrears (A) on February 12, May 12, August 12 and November 12 of each year,
commencing February 12, 1999 and (B) on such Remarketing Settlement Date (each,
a "PRE-REMARKETING INTEREST PAYMENT DATE"), and will accrue from and including
the most recent date to which interest has been paid or, if no interest has been
paid, from November 12, 1998, to but excluding the related Pre-Remarketing
Interest Payment Date, except as otherwise described below.

                 The Interest Rate in effect for the period from and including
November 12, 1998 to but excluding February 12, 1999 shall be the rate
determined by the Calculation Agent two London Banking Days prior to November
12, 1998 and shall equal LIBOR plus 175 basis points. The Interest Rate in
effect from and including February 12, 1999 to but excluding February 9, 2000,
for each quarterly period from and including the immediately preceding
Pre-Remarketing Interest Payment Date to but excluding the applicable
Pre-Remarketing Interest Payment Date, shall be determined by the Calculation
Agent two London Banking Days prior to such immediately preceding
Pre-Remarketing Interest Payment Date (a "DATE OF DETERMINATION") and shall
equal LIBOR plus 175 basis points. The Interest Rate in effect thereafter, for
each quarterly period from and including the immediately preceding
Pre-Remarketing Interest Payment Date to but excluding the applicable
Pre-Remarketing Interest Payment Date, shall be determined by the Calculation
Agent two London Banking Days prior to such immediately preceding
Pre-Remarketing Interest Payment Date and shall equal LIBOR plus 150 basis
points. The amount of interest payable on February 12, 2000 shall reflect the
pro rata application of the two Interest Rates applicable to the calculation
period for such interest payment for each day on which the applicable Interest
Rate was in effect. The amount of interest payable for any quarterly period
shall be computed on the basis of a 360-day year of twelve 30-day months. Except
as provided in the last sentence of this paragraph, the amount of interest
payable for any period shorter than a full quarterly period for which interest
is computed will be computed on the basis of the actual number of days elapsed
per 30-day month. If a Pre-Remarketing Interest Payment Date is not a Business
Day, then such Pre-Remarketing Interest Payment Date will be the next succeeding
Business Day, except if such Business Day is in the next succeeding calendar
month, such Pre-Remarketing Distribution Date will be the immediately preceding
Business Day.

       All percentages resulting from any calculations on the Subordinated Notes
will be rounded, if necessary, to the nearest one hundred-thousandth of a
percentage point, with five one-millionths of a percentage point rounded upward
(e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)), and
all dollar amounts used in or resulting from such calculation will be rounded to
the nearest cent (with one-half cent being rounded upward).

                                       A-4
<PAGE>   20
(c) Interest shall be paid to the Person in whose name such Subordinated Note or
any predecessor Subordinated Note is registered on the books and records of the
Company at the close of business on the Regular Record Date for such interest
installment, which shall be fifteen (15) days prior to a Pre-Remarketing
Interest Payment Date (the "PRE-REMARKETING REGULAR RECORD DATE").

(d) From and including the Remarketing Settlement Date on which Replacement
Notes are issued, interest on the Replacement Notes will be payable quarterly in
arrears (A) on February 12, May 12, August 12 and November 12 of each year,
commencing on the first such date following such Remarketing Settlement Date and
(B) on the Maturity Date (each, an "INTEREST PAYMENT DATE"), and will accrue
from the most recent date to which interest has been paid or, if no interest has
been paid, from and including such Remarketing Settlement Date, to but excluding
the related Interest Payment Date, except as otherwise described below. The
amount of interest payable for any quarterly period shall be computed on the
basis of a 360-day year of twelve 30-day months. Except as provided in the last
sentence of this paragraph, the amount of interest payable for any period
shorter than a full quarterly period for which interest is computed will be
computed on the basis of the actual number of days elapsed per 30-day month. If
an Interest Payment Date is not a Business Day, then such Interest Payment Date
will be postponed to the next succeeding Business Day (and without any interest
or other payment in respect of any such delay); provided, that if such Business
Day is in the next succeeding calendar month, such Interest Payment Date will be
the immediately preceding Business Day.

(e) Interest shall be paid to the Person in whose name the Subordinated Note or
any predecessor Subordinated Note is registered on the books and records of the
Company, at the close of business on the Regular Record Date for such interest
installment, which, in respect of (i) Subordinated Notes of which the Property
Trustee is the Holder or (ii) a Global Subordinated Note, shall be the close of
business on the Business Day next preceding that Interest Payment Date (the
"REGULAR RECORD DATE"). If the Subordinated Notes are not held by the Property
Trustee and are not represented by a Global Subordinated Note, the Regular
Record Date for such interest installment shall be fifteen (15) days prior to
that Interest Payment Date.

The indebtedness evidenced by this Subordinated Note is, to the extent provided
in the Indenture, subordinate and junior in right of payment to the prior
payment in full of all existing and future Senior Indebtedness, and this
Subordinated Note is issued subject to the provisions of the Indenture with
respect thereto. Each Holder of this Subordinated Note, by accepting the same,
(a) agrees to and shall be bound by such provisions, (b) authorizes and directs
the Trustee on his or her behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination so provided and (c)
appoints the Trustee his or her

                                      A-5
<PAGE>   21
attorney-in-fact for any and all such purposes. Each Holder hereof, by his or
her acceptance hereof, hereby waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder of
Senior Indebtedness, whether now outstanding or hereafter incurred, and waives
reliance by each such holder upon said provisions.

This Subordinated Note shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been signed by or on behalf of
the Trustee.

The provisions of this Subordinated Note are continued on the reverse side
hereof and such continued provisions shall for all purposes have the same effect
as though fully set forth at this place.

                                       A-6
<PAGE>   22
       IN WITNESS WHEREOF, the Company has caused this instrument to be
executed.

                                        HERCULES INCORPORATED

                                        By: ____________________________________
                                             Name:
                                             Title

Attest:

By: ______________________________
     Name:
     Title:
<PAGE>   23
                          CERTIFICATE OF AUTHENTICATION

This is one of the Subordinated Notes of the series of Debentures described in
the within-mentioned Indenture.

Dated:

THE CHASE MANHATTAN BANK,
as Trustee                                  or as Authentication Agent

By _______________________________          By _________________________________
    Authorized Signatory                        Authorized Signatory
<PAGE>   24
                                [REVERSE OF NOTE]

         This Subordinated Note is one of a duly authorized series of Debentures
of the Company (herein sometimes referred to as the "DEBENTURES"), specified in
the Indenture, all issued or to be issued in one or more series under and
pursuant to a Junior Subordinated Debenture Indenture dated as of November 12,
1998, duly executed and delivered between the Company and The Chase Manhattan
Bank, as Trustee (the "TRUSTEE"), as supplemented by a First Supplemental
Indenture dated as of November 12, 1998, a Second Supplemental Indenture dated
as of July 6, 1999, a Third Supplemental Indenture dated as of October 25, 1999,
a Fifth Supplemental Indenture dated as of January 24, 2000 and a Sixth
Supplemental Indenture dated as of February 9, 2000 (the Indenture as so
supplemented, the "INDENTURE"), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and the Holders of the Subordinated Notes. By the terms of
the Indenture, the Debentures are issuable thereunder in series that may vary as
to amount, date of maturity, rate of interest and in other respects as provided
in the Indenture. This series of Debentures is limited in aggregate principal
amount as specified in said Sixth Supplemental Indenture and herein sometimes
referred to as the "SUBORDINATED NOTES."

         Because of the occurrence and continuation of a Special Event or a
Failed Remarketing, in certain circumstances, this Subordinated Note may become
due and payable at the principal amount together with any interest accrued
thereon (the "REDEMPTION PRICE"). The Redemption Price shall be paid prior to
12:00 noon, New York City time, on the date of such redemption or at such
earlier time as the Company determines.

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

         The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the Holders of at least a majority in aggregate
principal amount of the Debentures of each series affected thereby then
outstanding (and, in the case of any series of Debentures held as assets of a
Trust and with respect to which a Dissolution Event has not theretofore
occurred, such consent of holders of the Preferred Securities and the Common
Securities of such Trust as may be required under the Trust Agreement), as
defined in the Indenture, to reduce the principal amount of such Debentures;
reduce the percentage of the principal amount of such Debentures the Holders of
which must consent to an amendment of this Indenture or a waiver; change (i) the
stated maturity of the

                                      A-9
<PAGE>   25
principal of or the interest on such Debentures, or (ii) the rate of interest
(or the manner of calculation thereof) on such Debentures, change adversely to
the Holders the redemption, conversion or exchange provisions applicable to such
Debentures, if any; change the currency in respect of which the payments on such
Debentures are to be made; make any change in the Subordination provisions of
the Indenture (Article 10) that adversely affects the rights of the Holders of
the Debentures or any change to any other Section hereof that adversely affects
their rights; or change the direct action rights of holders of Preferred
Securities; provided that, in the case of the outstanding Debentures of a series
then held by a Trust, no such amendment shall be made that adversely affects the
holders of the Preferred Securities of that Trust, and no waiver of any Event of
Default with respect to the Debentures of that series or compliance with any
covenant under this Indenture shall be effective, without the prior consent of
the holders of at least a majority of the aggregate liquidation amount of the
outstanding Preferred Securities of that Trust or the holder of each such
Preferred Security, as applicable.

         A supplemental indenture that changes or eliminates any covenant or
other provision of this Indenture that has expressly been included solely for
the benefit of one or more particular series of Debentures, or which modifies
the rights of the Holders of Debentures of such series with respect to such
covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Debentures of any other series.

         No reference herein to the Indenture and no provision of this
Subordinated Note or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of and
premium, if any, and interest on this Subordinated Note at the time and place
and at the rate or rates and in the currency herein prescribed.

         As provided in the Indenture and subject to certain limitations herein
and therein set forth, this Subordinated Note is transferable by the registered
Holder hereof on the Register of the Company, upon surrender of this
Subordinated Note for registration of transfer at the office or agency of the
Trustee in the City and State of New York accompanied by a written instrument or
instruments of transfer in form satisfactory to the Company or the Trustee duly
executed by the registered Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Subordinated Notes of authorized
denominations and for the same aggregate principal amount and series will be
issued to the designated transferee or transferees. No service charge will be
made for any such transfer, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in relation
thereto.

                                      A-10
<PAGE>   26
         Prior to due presentment for registration of transfer of this
Subordinated Note, the Company, the Trustee, any paying agent and the Registrar
may deem and treat the registered holder hereof as the absolute owner hereof
(whether or not this Subordinated Note shall be overdue and notwithstanding any
notice of ownership or writing hereon made by anyone other than the Registrar)
for the purpose of receiving payment of or on account of the principal hereof
and premium, if any, and interest due hereon and for all other purposes, and
neither the Company nor the Trustee nor any paying agent nor any Registrar shall
be affected by any notice to the contrary.

         No recourse shall be had for the payment of the principal of or the
interest on this Subordinated Note, or for any claim based hereon, or otherwise
in respect hereof, or based on or in respect of the Indenture, against any
incorporator, stockholder, officer or director, past, present or future, as
such, of the Company or of any predecessor or successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly
waived and released.

         The Subordinated Notes of this series are issuable only in registered
form without coupons in denominations of $1,000 and any integral multiple of
$1,000 thereof. The Subordinated Notes may be transferred or exchanged only in
minimum denominations of $100,000 and integral multiples of $1,000 in excess
thereof, and any attempted transfer, sale or other disposition of Subordinated
Notes in a denomination of less than $100,000 shall be deemed void and of no
legal effect whatsoever.

         All terms used in this Subordinated Note that are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

         THE INDENTURE AND THE DEBENTURES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS
PRINCIPLES OF CONFLICTS OF LAWS.

                                      A-11<PAGE>   1
                                                                    EXHIBIT 4-AH

                       REMARKETING AND CONTINGENT PURCHASE
                                    AGREEMENT

                                      among

                             HERCULES INCORPORATED,

                                HERCULES TRUST V

                                       and

                         BANC OF AMERICA SECURITIES LLC

                          Dated as of February 9, 2000
<PAGE>   2
                  REMARKETING AND CONTINGENT PURCHASE AGREEMENT

     REMARKETING AND CONTINGENT PURCHASE AGREEMENT dated as of February 9, 2000
by and among Hercules Incorporated, a Delaware corporation (the "COMPANY"),
Hercules Trust V, a Delaware statutory business trust (the "TRUST"), and Banc of
America Securities LLC, as remarketing agent (the "REMARKETING AGENT").

                                   WITNESSETH:

         WHEREAS, the Trust has issued 200,000 Auction Rate Reset Preferred
Securities (the "PREFERRED SECURITIES") in an aggregate stated liquidation
amount of $200,000,000 and 6,200 Auction Rate Reset Common Securities (the
"COMMON SECURITIES", and together with the Preferred Securities, the "TRUST
SECURITIES") in an aggregate stated liquidation amount of $6,200,000 under the
Amended and Restated Trust Agreement dated as of November 12, 1998 among the
Company, the Administrative Trustees, the Delaware Trustee and the Property
Trustee (as the same has been and may be amended from time to time, the "TRUST
AGREEMENT");

         WHEREAS, the sole assets of the Trust consist of $206,200,000 aggregate
principal amount of Auction Rate Reset Junior Subordinated Notes Series A (the
"SUBORDINATED NOTES") of the Company purchased by the Trust from the Company
with the proceeds of the sale of the Trust Securities;

         WHEREAS, at the request of the Holders of a Majority in Liquidation
Amount of the Trust Securities, the Preferred Securities (or, following the
distribution of Subordinated Notes to Holders of Preferred Securities upon the
dissolution of the Trust, the Subordinated Notes) may be remarketed in
accordance with the terms hereof;

         WHEREAS, the Company and the Trust have requested that Banc of America
Securities LLC ("BAS") act as the Remarketing Agent and, as such, perform the
duties described herein; and

         WHEREAS, BAS is willing to act as Remarketing Agent and, as such, to
perform such duties on the terms and conditions expressly set forth herein;

         NOW, THEREFORE, in consideration of the covenants herein made, and
subject to the conditions herein set forth, the parties hereto agree as follows:

         SECTION 1. Definitions. Capitalized terms used and not defined in this
Agreement shall have the meanings assigned to them in the Trust Agreement. In
<PAGE>   3
addition, as used in this Agreement, the following terms shall have the
following definitions:

         "1934 ACT REPORTS" has the meaning set forth in Section 2(b)(iv).

         "AFFILIATED BIDDER" has the meaning set forth in Section 5(b).

         "ASSOCIATED PERSON" has the meaning set forth in Article 1(ee) of the
ByLaws of the National Association of Securities Dealers, Inc.

         "BAS" has the meaning set forth in the fourth recital hereto.

         "BID" means an irrevocable offer to purchase the aggregate outstanding
Liquidation Amount of Preferred Securities at the Remarketing Price or,
following any distribution of Subordinated Notes to Holders, the aggregate
outstanding principal amount of such Subordinated Notes, as the case may be,
with a Distribution Rate or interest rate, as applicable, equal to the Bid Rate
specified in such Bid and with a redemption date or maturity date, as the case
may be, on the Remarketed Redemption Date.

         "BID RATE" means the proposed Distribution Rate on the Preferred
Securities and/or interest rate on Subordinated Notes specified in a Bid.

         "BUSINESS DAY" means any day other than a Saturday, Sunday or other day
on which banking institutions in The City of New York or London are authorized
or required by law, regulation or executive order to close.

         "CHANGE OF CONTROL" shall be deemed to have occurred if (i) any Person
or group of Persons (within the meaning of Section 13 or 14 of the Exchange Act)
shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of
the Exchange Act) of 30% or more of the Voting Stock of the Company or (ii)
Continuing Directors shall cease to be a majority of the members of the Board of
Directors of the Company.

         "COMMISSION" means the Securities and Exchange Commission.

         "COMPANY" has the meaning set forth in the initial paragraph hereto.

         "CONTINUING DIRECTORS" means (i) the members of the Board of Directors
of the Company on the date hereof and (ii) future members of such Board of
Directors who were nominated or appointed by a majority of the Continuing
Directors at the date of their nomination or appointment.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

                                                2
<PAGE>   4
         "EXCHANGE ACT REGULATIONS" means the rules and regulations promulgated
under the Exchange Act.

         "EXPECTED RESET DATE" has the meaning set forth in Section 5(a)(i).

         "FAILED REMARKETING" means an event deemed to have occurred if,
following the giving of notice by the Requesting Holders to the Remarketing
Agent as contemplated by Section 5(a)(i), the settlement of a purchase and sale
of the Preferred Securities (or, if applicable, the Subordinated Notes) shall
not have occurred within the applicable time limit specified in this Agreement
and in any event if such a settlement shall not have occurred by the 23rd
Business Day following the delivery of the related Remarketing Notice, giving
effect, if applicable, to the provisions of Section 7.

         "FINAL RESET DATE" has the meaning set forth in Section 5(a)(ii).

         "FORMER HOLDERS" has the meaning set forth in Section 5(i).

         "GUARANTEE AGREEMENT" means the Preferred Securities Guarantee
Agreement dated as of November 12, 1998, executed by the Company for the benefit
of Holders of the Preferred Securities, as amended, supplemented, modified or
superseded from time to time.

         "INDENTURE" means the Indenture (the "BASE INDENTURE") dated as of
November 12, 1998 between the Company and The Chase Manhattan Bank, as Indenture
Trustee, as supplemented by a First Supplemental Indenture dated as of November
12, 1998, a Second Supplemental Indenture dated as of July 6, 1999, a Third
Supplemental Indenture dated as of October 25, 1999, a Fifth Supplemental
Indenture dated as of January 24, 2000 and a Sixth Supplemental Indenture dated
as of February 9, 2000 and as further amended, supplemented, modified or
superceded from time to time.

         "INDENTURE TRUSTEE" means the Trustee pursuant to the Indenture.

         "INVESTMENT COMPANY ACT" means the Investment Company Act of 1940, as
amended.

         "MATERIAL ADVERSE CHANGE" means any development that could reasonably
be expected to result in a material adverse change in the business, properties
or financial condition of the Company and its subsidiaries, taken as a whole.

         "OFFERING MEMORANDUM" has the meaning set forth in Section 12.

                                        3
<PAGE>   5
         "PREFERRED SECURITIES" has the meaning set forth in the first recital
hereto.

         "REFERENCE CORPORATE DEALER" means a leading dealer of publicly traded
debt securities selected by the Company, which dealer shall be a Qualified
Institutional Buyer (as defined in Rule 144A under the Securities Act).

         "REMARKETED REDEMPTION DATE" means the later of (i) the first
anniversary of the Remarketing Settlement Date on which Replacement Securities
are issued and (ii) February 9, 2002.

         "REMARKETING" means a remarketing of Preferred Securities or
Subordinated Notes pursuant to Section 5.

         "REMARKETING NOTICE" has the meaning set forth in Section 5(a)(i).

         "REMARKETING PRICE" means (i) with respect to the Preferred Securities,
a price equal to 100% of the aggregate outstanding Liquidation Amount of the
Preferred Securities and (ii) with respect to the Subordinated Notes, a price
equal to 100% of the aggregate outstanding principal amount of the Subordinated
Notes.

         "REMARKETING SETTLEMENT DATE" means the third Business Day immediately
following the Reset Date.

         "RENEWED REMARKETING" has the meaning set forth in Section 7.

         "REPLACEMENT PREFERRED SECURITIES" has the meaning set forth in Section
5(j).

         "REPLACEMENT SECURITIES" has the meaning set forth in Section 5(j).

         "REPLACEMENT SUBORDINATED NOTES" has the meaning set forth in Section
5(j).

         "REPRESENTATION DATE" has the meaning set forth in Section 2(a).

         "REQUESTING HOLDERS" has the meaning set forth in Section 5(a)(i).

         "RESET DATE" means any date established as a Reset Date pursuant to
Section 5.

         "RESET RATE" means the Winning Bid Rate.

         "SECONDARY PURCHASE AGREEMENT" means an agreement to be dated as of the
Reset Date (or such other date permitted by applicable law) among the

                                                4
<PAGE>   6
Company, the Trust, the Remarketing Agent and the Secondary Purchaser providing
for the purchase of the Preferred Securities, or the Subordinated Notes, as the
case may be, by the Secondary Purchaser, in a form customary for transactions of
this type and as otherwise agreed among the Company, the Trust, the Remarketing
Agent and the Secondary Purchaser.

         "SECONDARY PURCHASER" has the meaning set forth in Section 5(c).

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         "SUBORDINATED NOTES" has the meaning set forth in the second recital
hereto.

         "TRANSACTION DOCUMENTS" means this Agreement, the Purchase Agreement,
the Trust Agreement, the Guarantee Agreement, the Indenture, the Common
Securities, the Secondary Purchase Agreement, the Preferred Securities and the
Subordinated Notes; provided that for any representation made as of the date
hereof pursuant to Section 2(b), Transaction Documents means this Agreement, the
Purchase Agreement, the Trust Agreement, the Guarantee Agreement, the Indenture,
the Common Securities, the Letter Agreement, the Preferred Securities and the
Subordinated Notes.

         "TRUST" has the meaning set forth in the initial paragraph hereto.

         "TRUST AGREEMENT" has the meaning set forth in the initial paragraph
hereto.

         "TRUST SECURITIES" has the meaning set forth in the first recital
hereto.

         "WINNING BID RATE" has the meaning set forth in Section 5(b).

         "VOTING STOCK" means capital stock of the Company having ordinary
voting power for the election of directors.

         SECTION 2. Representations and Warranties. (a) Basic Warranties. Each
of the Company and the Trust, on the one hand, and the Remarketing Agent, on the
other hand, represents and warrants to the other as of the date hereof, the
Reset Date and the Remarketing Settlement Date (each of the foregoing dates
being hereinafter referred to as a "REPRESENTATION DATE") that:

                  (i) Status. It is a duly and validly existing entity under the
         laws of the jurisdiction of its creation, formation or incorporation
         and, if relevant under such laws, in good standing.

                                        5
<PAGE>   7
                  (ii) Powers. It has the corporate or trust power and authority
         to execute, enter into and perform its obligations under, or
         contemplated under, this Agreement and consummate the transactions
         contemplated hereby.

                  (iii) No Violation or Conflict. The execution, delivery and
         performance by such party of this Agreement, the consummation of the
         transactions herein contemplated and compliance by such party with its
         obligations hereunder (A) do not violate or conflict with (1) any
         provision of its organizational documents, (2) any law applicable to
         it, any order or judgment of any court or other agency of government
         applicable to it or any of its assets that affects the legality,
         validity or enforceability of this Agreement and (B) do not and will
         not conflict with or constitute a breach of any contractual restriction
         binding on or affecting it or any of its assets.

                  (iv) Consents. All governmental and other consents that are
         required to have been obtained by it with respect to the performance by
         such party of its obligations under this Agreement have been obtained
         and are in full force and effect and all conditions of any such
         consents have been complied with.

                  (v) Obligations Binding. Its obligations under this Agreement
         constitute its legal, valid and binding obligations, enforceable
         against it in accordance with the terms of this Agreement, except as of
         the enforcement hereof may be limited by bankruptcy, insolvency,
         reorganization, moratorium or other laws of general application
         relating to or affecting the enforcement of creditors' rights or by
         general equitable principles.

                  (vi) Absence of Litigation. There is not pending or, to the
         best of its knowledge, threatened against or affecting it or any of its
         Affiliates any action, suit or proceeding at law or in equity or before
         any court, tribunal, governmental body, agency or official or any
         arbitrator that could reasonably be expected to materially and
         adversely affect the legality, validity or enforceability against it of
         this Agreement or its ability to perform its obligations under this
         Agreement.

                  (vii) Non-Reliance. It is acting for its own account, and it
         has made its own independent decision to enter into this Agreement and
         as to whether this Agreement is appropriate or proper for it based upon
         its own judgment and upon advice from such advisers as it has deemed
         necessary. It is not relying on any communication (written or oral) of
         any other party as investment advice or as a recommendation to enter
         into this Agreement, it being understood that information and
         explanations related to the terms and conditions of this Agreement
         shall not be considered investment

                                       6
<PAGE>   8
         advice or a recommendation to enter into this Agreement. No
         communication (written or oral) received from any other party shall be
         deemed to be an assurance or guarantee as to the expected results of
         this Agreement. No other party is acting as a fiduciary for or an
         adviser to it with respect to this Agreement.

                  (viii) Assessment and Understanding. It is capable of
         assessing the merits of and understanding (on its own behalf or through
         independent professional advice), and understands and accepts, the
         terms, conditions and risks of this Agreement. It is also capable of
         assuming, and assumes, the risks of this Agreement.

         (b) Representations and Warranties of the Company and the Trust. Each
of the Company and the Trust further represents and warrants to the Remarketing
Agent as of each Representation Date, as applicable to each such entity, that:

                  (i) Securities Validly Issued. The Preferred Securities and
         Subordinated Notes have been, and the Replacement Preferred Securities
         and the Replacement Subordinated Notes will be, validly authorized and
         executed by the Trust and the Company, as the case may be, and
         authenticated, issued and delivered in the manner provided for in the
         Trust Agreement and the Indenture, as the case may be, and delivered
         against payment of the purchase price therefor as provided in the
         Purchase Agreement, and constitute, or will constitute, legally binding
         obligations of the Trust or the Company, as the case may be, entitled
         to the benefits of the Trust Agreement and Indenture.

                  (ii) No Event of Default. No Event of Default under the Trust
         Agreement and no Event of Default under the Indenture has occurred and
         is continuing and no such event or circumstance would occur as a result
         of its entering into or performing its obligations under this
         Agreement.

                  (iii) Compliance with Exchange Act Requirements. The Company
         has made all the filings with the Commission that it is required to
         make under the Exchange Act and the Exchange Act Regulations, and each
         such filing complies in all material respects with the requirements of
         the Exchange Act and Exchange Act Regulations.

                  (iv) No Material Misstatements. The Company's most recent
         Annual Report on Form 10-K, and its Quarterly Reports on Form 10-Q and
         Current Reports on Form 8-K filed after the end of the fiscal year to
         which such Annual Report relates (collectively, the "1934 ACT
         REPORTS"), as supplemented by material press releases, at the time they
         were filed did

                                        7
<PAGE>   9
         not, and, after giving effect to the transactions contemplated by the
         Transaction Documents do not, contain any untrue statement of a
         material fact or omit to state a material fact necessary in order to
         make the statements therein, in the light of the circumstances under
         which they were made, not misleading.

                  (v) No Material Adverse Change. Since the respective dates as
         of which information is given in the 1934 Act Reports, except as
         otherwise stated therein, or as supplemented by material press
         releases, there has been no Material Adverse Change.

                  (vi) Not an Investment Company. Neither the Company nor the
         Trust is an "investment company" or an entity "controlled" by an
         "investment company" as such terms are defined in the Investment
         Company Act.

         SECTION 3.  Covenants.  (a) The Company hereby covenants with the
Remarketing Agent as follows:

                  (i) Maintain Authorizations. The Company shall use all
         reasonable efforts to maintain in full force and effect all consents of
         any governmental or other authority that are required to be obtained by
         it with respect to this Agreement and shall use all reasonable efforts
         to obtain any such consents that may become necessary in the future.

                  (ii) Comply with Laws. The Company shall comply in all
         material respects with all applicable laws and orders to which it may
         be subject if failure so to comply would materially impair its ability
         to perform its obligations under this Agreement.

                  (iii) Furnish Documentation. The Company will furnish to the
         Remarketing Agent: (i) unless available to the Remarketing Agent on
         EDGAR or the Company's website, each document filed after the date
         hereof by the Company pursuant to the periodic reporting requirements
         of the Exchange Act and (ii) in connection with the Remarketing of the
         Preferred Securities or Subordinated Notes, as the case may be, such
         other information as the Remarketing Agent may reasonably request from
         time to time. Notwithstanding the foregoing sentence, the Company
         agrees to provide the Remarketing Agent with as many copies of the
         foregoing written materials and other Company-approved information as
         the Remarketing Agent may reasonably request for use in connection with
         the Remarketing of the Preferred Securities or Subordinated Notes, as
         the case may be, and consents to the use thereof for such purpose.

                                        8
<PAGE>   10
                  (iv) Notification. If, at any time prior to the Remarketing
         Settlement Date, any event or condition known to the Company relating
         to or affecting the Company, the Preferred Securities or the
         Subordinated Notes shall occur that could reasonably be expected to
         cause any of the reports, documents, materials or information referred
         to in Section 3(a)(iii) or any document incorporated therein by
         reference to contain an untrue statement of a material fact or omit to
         state a material fact, the Company shall promptly notify the
         Remarketing Agent in writing of the then-known circumstances and
         details of such event or condition.

                  (v) Comply with Securities Laws. The Company will comply with
         the Securities Act and the rules and regulations of the Commission
         thereunder, the Exchange Act and the Exchange Act Regulations so as to
         permit the completion of the Remarketing of the Preferred Securities or
         Subordinated Notes, as the case may be, as contemplated in this
         Agreement.

                  (vi) No Purchase of Securities. The Company agrees that
         neither it nor any of its subsidiaries or Affiliates shall purchase or
         otherwise acquire, or enter into any agreement to purchase or otherwise
         acquire, any of the Preferred Securities or Subordinated Notes prior to
         the Remarketing thereof by the Remarketing Agent, other than pursuant
         to this Agreement.

                  (vii) Notification of Rating Agency Action. The Company will
         provide prompt notice by telephone, confirmed in writing (which may
         include facsimile or other electronic transmission), to the Remarketing
         Agent of any notification or announcement by a "nationally recognized
         statistical rating organization" (as defined by the Commission for
         purposes of Rule 436(g)(2) under the Securities Act) with regard to a
         downgrade to below investment grade or withdrawal of the rating of any
         security of the Company or the placement on what is currently called a
         "watch list"or a "credit watch" with negative implications of any
         security of the Company.

                  (viii) Restriction on Debt Issuance. During the period
         commencing on the date on which the Company receives a Remarketing
         Notice in accordance with Section 5(a)(i) and ending on the earlier of
         (A) the date of the related Remarketing Settlement Date or (B) the date
         of the related Failed Remarketing, the Company will not, without the
         consent of the Remarketing Agent, offer, sell or contract to sell, or
         otherwise dispose of, directly or indirectly, or announce the offering
         of, any debt securities with a maturity of more than one year but fewer
         than two years.

                  (ix) Best Efforts. The Company shall use its best efforts to
         assist the Remarketing Agent in Remarketing the Preferred Securities or
         the

                                        9
<PAGE>   11
         Subordinated Notes, as the case may be, in the manner contemplated by
         this Agreement.

          (b) The Remarketing Agent hereby covenants with the Company as
follows:

                  (i) Maintain Authorizations. The Remarketing Agent will use
         all of its reasonable efforts to maintain in full force and effect all
         consents of any governmental or other authority that are required to be
         obtained by it with respect to this Agreement and shall use all
         reasonable efforts to obtain any that may become necessary in the
         future.

                  (ii) Comply with Laws. The Remarketing Agent shall comply in
         all material respects with all applicable laws and orders which it may
         be subject if failure so to comply would materially impair its ability
         to perform its obligations under this Agreement.

         SECTION 4. Appointment and Obligations of Remarketing Agent and
Calculation Agent; Secondary Purchaser. (a) The Company and the Trust hereby
appoint BAS as Remarketing Agent and as Calculation Agent under the Trust
Agreement and the Indenture (i) to determine, in accordance with the terms
described in Section 5(b), the Reset Rate that, when applied to the Preferred
Securities (or, following the distribution of the Subordinated Notes to Holders
of the Preferred Securities upon dissolution of the Trust, the Subordinated
Notes), shall result in the resale of all outstanding Preferred Securities (or,
if applicable, all outstanding Subordinated Notes), at a sales price equal to
the Remarketing Price; provided that the Reset Rate shall in no event exceed the
rate permitted by applicable law, (ii) to conduct a private auction of all
outstanding Preferred Securities or Subordinated Notes, as the case may be, in
accordance with Section 5 of this Agreement, and (iii) to enter into a Secondary
Purchase Agreement with respect to the Preferred Securities or the Subordinated
Notes, as the case may be.

          (b) Pursuant to the Secondary Purchase Agreement, the Secondary
Purchaser, either as the sole purchaser or as the representative of a syndicate
of purchasers designated by the Secondary Purchaser, shall agree, subject to the
terms and conditions set forth therein, that the Secondary Purchaser and any
such other purchasers shall purchase such Preferred Securities or Subordinated
Notes, as the case may be, from the holders thereof at a price equal to the
Remarketing Price.

         SECTION 5.  Determination of Reset Date; Remarketing Procedures.

          (a) (i) Subject to Section 7, the Holders of a Majority in Liquidation
Amount of the Trust Securities (or, if applicable, the holders of a majority in

                                       10
<PAGE>   12
principal amount of the Subordinated Notes), acting together as a single class
(the "REQUESTING HOLDERS"), have the right to require Remarketing of the Trust
Securities (or, if applicable, the Subordinated Notes) at any time. The
Requesting Holders may exercise this right by delivering a written notice to the
Remarketing Agent at any time requesting a Remarketing of the Preferred
Securities (or, if applicable, the Subordinated Notes). Upon the receipt of such
notice, the Remarketing Agent shall immediately deliver a written notice to the
Company on behalf of the Requesting Holders (the "REMARKETING NOTICE"). If the
Requesting Holders exercise their right to require the Remarketing of the
Preferred Securities (or, if applicable, the Subordinated Notes), the Reset Date
shall be the sixth Business Day after the date on which the Remarketing Notice
is received by the Company (the "EXPECTED RESET DATE").

                  (ii) Notwithstanding Section 5(a)(i):

                           (A) the Company may, by notice to the Remarketing
                  Agent, direct that the Reset Date be delayed if the Company
                  believes it will be unable to meet the conditions to
                  Remarketing in the absence of such a delay; and

                           (B) the Remarketing Agent may, by notice to the
                  Company, direct that the Reset Date be delayed if the
                  Remarketing Agent believes that a Remarketing will not be
                  successful in the absence of such a delay;

         provided that the Company and the Remarketing Agent, in either such
         event, will use their reasonable best efforts to establish a delayed
         Reset Date that is within five Business Days after the Expected Reset
         Date, but in no event later than the 15th Business Day following the
         date on which the related Remarketing Notice was received, or the 20th
         Business Day in the case of a Renewed Remarketing to which the
         provisions of Section 7 apply (as applicable, the "FINAL RESET DATE").

                  (iii) If the Company and the Remarketing Agent have not
         agreed, on or prior to the sixth Business Day preceding the Final Reset
         Date, to a Reset Date that is not later than the Final Reset Date, a
         Failed Remarketing shall be deemed to have occurred.

                  (iv) Notwithstanding the provisions of this Section 5, upon
         receipt of a Remarketing Notice the Company shall have the right, in
         its sole discretion, to elect to pay the aggregate Liquidation Amount
         of and accumulated and unpaid Distributions on the Preferred Securities
         (or the outstanding principal of and accrued and unpaid interest on the

                                       11
<PAGE>   13
         Subordinated Notes, as the case may be), rather than proceed with the
         Remarketing. The Company shall make such election by sending written
         notice, within five Business Days after the receipt of the Remarketing
         Notice, to the Remarketing Agent and the Trustee. If the Company makes
         such election, it shall pay the aggregate Liquidation Amount of and
         accumulated and unpaid Distributions on the Preferred Securities (or
         the outstanding principal of and accrued and unpaid interest on the
         Subordinated Notes, as the case may be) to the Holders thereof on the
         date eight Business Days after receipt of the Remarketing Notice.

          (b) The Company shall, by notice to the Remarketing Agent no later
than five Business Days prior to the Reset Date, select and specify three
Reference Corporate Dealers. By 3:00 p.m., New York City time, on the Reset
Date, the Remarketing Agent shall request Bids from such Reference Corporate
Dealers. The Remarketing Agent or an Affiliate or Associated Person thereof (any
such person, an "AFFILIATED BIDDER") may, at its option, enter a Bid. The
Remarketing Agent shall disclose to the Company the Bids obtained and determine
the lowest Bid Rate (the "WINNING BID RATE") from among the Bids obtained on the
Reset Date. By approximately 4:30 p.m., New York City time, on the Reset Date,
the Remarketing Agent shall notify the Company, the Indenture Trustee and the
Property Trustee of the Winning Bid Rate. If on a Reset Date, Bids are not
submitted by at least two Reference Corporate Dealers, or if the lowest Bid
submitted would result in a Winning Bid Rate in excess of the rate permitted by
applicable law, the Remarketing shall be deemed to be a Failed Remarketing on
the corresponding Remarketing Settlement Date. The Winning Bid Rate determined
by the Remarketing Agent, absent manifest error, shall be binding and conclusive
upon the Holders of the Trust Securities, the holders of the Subordinated Notes,
the Company and the Trust.

         (c) On the Reset Date, the Remarketing Agent shall designate as the
Secondary Purchaser (the "SECONDARY PURCHASER") the Reference Corporate Dealer
providing the Bid containing the Winning Bid Rate. If the Winning Bid Rate is
specified in the Bids submitted by two or more bidders, the Remarketing Agent
shall, in consultation with the Company, designate one of such bidders as
the Secondary Purchaser.

          (d) On the Reset Date, the Secondary Purchaser shall enter into a
Secondary Purchase Agreement for the purchase by such Secondary Purchaser at the
Remarketing Price of the aggregate Liquidation Amount of Preferred Securities,
with (i) a Distribution Rate equal to the Winning Bid Rate (or, if Subordinated
Notes shall have been distributed to Holders of the Trust Securities, the
aggregate principal amount of Subordinated Notes with an interest rate equal to
the Winning Bid Rate) and (ii) a Mandatory Redemption Date (or, in the case of
Subordinated Notes, a maturity date) on the Remarketed Redemption Date.

                                       12
<PAGE>   14
          (e) If a Remarketing shall have occurred pursuant to this Section 5
but settlement of the purchase and sale of the Preferred Securities or
Subordinated Notes, as the case may be, does not occur on the corresponding
Remarketing Settlement Date, then, unless the provisions of Section 7 with
respect to a Renewed Remarketing shall apply, a Failed Remarketing shall be
deemed to have occurred on such Remarketing Settlement Date.

          (f) At the time and in the manner specified in the Secondary Purchase
Agreement, the Secondary Purchaser shall pay on the Remarketing Settlement Date
to the Remarketing Agent on behalf of the holders of the Preferred Securities or
Subordinated Notes, as the case may be, an amount of cash equal to the
Remarketing Price.

          (g) Unless otherwise agreed among the Remarketing Agent, the Paying
Agent (under the Trust Agreement or Indenture, as applicable) and any Former
Holder, the Remarketing Agent shall promptly pay the Remarketing Price to the
Paying Agent, acting solely as agent for the Former Holders, and the Paying
Agent shall pay such amount to the Former Holders on the Remarketing Settlement
Date in the manner specified in the Trust Agreement or the Indenture, as the
case may be. Any amounts held by the Paying Agent for payment to the Former
Holders shall not be property of the Trust or the Company, as the case may be.

          (h) The obligation of the Remarketing Agent to make payment to the
Former Holders in connection with the Remarketing shall be limited to the extent
that the Secondary Purchaser has delivered the Remarketing Price therefor to the
Remarketing Agent.

          (i) Any outstanding Preferred Securities (or, if applicable, the
Subordinated Notes) purchased on the Remarketing Settlement Date shall be deemed
to be transferred to the Secondary Purchaser and shall be replaced in the manner
provided in Section 5(j). After the Remarketing Settlement Date (except in the
event of (y) a Failed Remarketing or (z) a failure by the Trust to pay on the
Remarketing Settlement Date all accrued and unpaid Distributions (including any
Additional Distributions) to such Remarketing Settlement Date (or, in the case
of the Subordinated Notes, a failure by the Company to pay on the Remarketing
Settlement Date all accrued interest (including any Additional Interest) on the
Subordinated Notes to such Remarketing Settlement Date)), (A) the Trust (or the
Company, in the case of the Subordinated Notes) shall make no further payments
to, and the Trust (or the Company, in the case of the Subordinated Notes) shall
have no further obligations under the Trust Agreement (or the Indenture, in the
case of the Subordinated Notes) in respect of, the holders of such replaced
securities (the "FORMER HOLDERS"), (B) the Trust (or the Company, in the case of

                                       13
<PAGE>   15
the Subordinated Notes) shall only be obligated to make payments to the holders
of Replacement Securities and (C) the Preferred Securities (or, if applicable,
the Subordinated Notes) of the Former Holders shall no longer represent an
obligation of, or interest in, the Trust (or the Company, in the case of the
Subordinated Notes) but shall only represent a right to receive the proceeds of
the Remarketing from the Paying Agent under the Trust Agreement or the
Indenture, as the case may be.

         (j) (i) The Company shall cause replacement certificates evidencing the
remarketed Preferred Securities (the "REPLACEMENT PREFERRED SECURITIES") to be
executed by an Administrative Trustee on behalf of the Trust and authenticated
by the Property Trustee and (ii) the Subordinated Note Issuer shall cause
replacement certificates evidencing the Subordinated Notes (the "REPLACEMENT
SUBORDINATED NOTES", and together with the Replacement Preferred Securities, the
"REPLACEMENT SECURITIES") to be executed by an authorized signatory and
authenticated by the Indenture Trustee, in each case, in accordance with the
provisions of this Section 5. If the Preferred Securities are to be purchased on
the Remarketing Settlement Date, (A) the Replacement Preferred Securities shall
be delivered to the purchaser of the remarketed Preferred Securities in
accordance with the terms of the Secondary Purchase Agreement and (B) the
Replacement Subordinated Notes shall be delivered to the Property Trustee of the
Trust. If the Subordinated Notes are to be purchased on the Remarketing
Settlement Date, the Replacement Subordinated Notes shall be delivered to the
purchaser of the remarketed Subordinated Notes in accordance with the terms of
the Secondary Purchase Agreement.

         SECTION 6. Reset of Distribution Rate, Mandatory Redemption Date,
Interest Rate and Maturity Date. From and including the Remarketing Settlement
Date on which Replacement Securities are issued, (a) the Distribution Rate on
the Trust Securities and the Interest Rate on the Subordinated Notes shall be
the Winning Bid Rate and (b) the Mandatory Redemption Date and the maturity date
of the Subordinated Notes shall be the Remarketed Redemption Date.

         SECTION 7. Renewed Remarketing. If a Remarketing has occurred pursuant
to Section 5 that would be a Failed Remarketing pursuant to Section 5(e),
because the purchase and sale of the Preferred Securities (or, if applicable,
the Subordinated Notes) do not take place on the corresponding Remarketing
Settlement Date, and the reason for such failure shall, in the good faith
determination of the Remarketing Agent, result from facts or circumstances that
are not due to the action or inaction of the Company, then the provisions of
Section 5 shall apply to a second remarketing (a "RENEWED REMARKETING") of the
Preferred Securities (or, if applicable, the Subordinated Notes), except that
the Expected Reset Date shall be the sixth Business Day following such
corresponding Remarketing Settlement Date; provided that only one Renewed

                                       14
<PAGE>   16
Remarketing may occur pursuant to this Section 7, and no Renewed Remarketing
shall occur after the Final Reset Date.

         SECTION 8. Failed Remarketing; Contingent Purchase Obligation. The
Remarketing Agent shall give notice of any Failed Remarketing on the date such
Failed Remarketing occurs, or is deemed to have occurred, by 4:00 p.m., New York
City time, to the Company, the Subordinated Note Issuer, the Property Trustee,
the Indenture Trustee and the Paying Agent under the Indenture. In the case of
(i) any Failed Remarketing or (ii) a Change of Control, the Holders of a
Majority in Liquidation Amount of the Trust Securities (or, if applicable, the
holders of a majority in principal amount of the Subordinated Notes) may, by
notice in writing to the Company, which notice, in the case of a Failed
Remarketing, shall be given not later than 15 days after the occurrence of such
Failed Remarketing, require the Company to purchase from the holders thereof, on
a Pro Rata basis in accordance with Section 9 of Annex I to the Trust Agreement,
all outstanding Trust Securities (or, if applicable, all outstanding
Subordinated Notes) for a purchase price equal to the aggregate Liquidation
Amount of such Trust Securities plus accrued but unpaid Distributions thereon
(or, if applicable, the aggregate principal amount of such Subordinated Notes
plus accrued but unpaid interest thereon). Payment of such purchase price shall
be made directly to each such holder on the tenth Business Day following the
date of the notice to the Company pursuant to the preceding sentence. Such
purchase shall be without recourse of any kind to any such holder. The parties
recognize that the occurrence of a Failed Remarketing indicates that it would
not be commercially reasonable under the circumstances to require Holders of
Trust Securities (or, if applicable, holders of the Subordinated Notes) to
attempt to resell such securities otherwise than pursuant to this Section 8, and
that therefore in the event of any default by the Company in its obligations
under this Section 8, a holder shall be entitled to recover the price of the
securities specified herein.

         SECTION 9. Senior Obligations. The obligations of the Company hereunder
constitute senior unsecured obligations, and shall rank pari passu with all
other senior unsecured obligations of the Company. Such obligations are not
subject to, and shall not be affected by, the provisions of Article 10 of the
Base Indenture.

         SECTION 10.  Replacement and Resignation of Remarketing Agent.  (a) The
Company shall not have the right to replace BAS as the Remarketing Agent,
except in the case of bad faith, gross negligence or willful misconduct by BAS.

          (b) BAS may resign at any time for good reason (after consultation
with the Company) and, subject to the following sentence, shall be discharged
from its duties and obligations hereunder or as Calculation Agent under the
Trust Agreement and the Indenture by giving no less than 10 days' notice. Any
such

                                       15
<PAGE>   17
resignation shall become effective upon the Company's appointment of a successor
to perform the services that would otherwise be performed hereunder by the
Remarketing Agent or the Calculation Agent under the Trust Agreement and the
Indenture, as the case may be, and the agreement of any such successor so to
serve. Upon receiving notice from the Remarketing Agent that it wishes to resign
hereunder or as Calculation Agent under the Trust Agreement and the Indenture
stating the reasons for such resignation, the Company shall appoint such a
successor and enter into a new remarketing agreement with it as soon as
reasonably practicable.

          (c) This Agreement shall terminate as to any Remarketing Agent that is
replaced on the effective date of its replacement pursuant to Section 10(b).
Notwithstanding any such termination, the obligations of the Company set forth
in Section 14 shall survive and remain in full force and effect until all
amounts payable under said Section 14 shall have been paid in full.

         SECTION 11. Dealing in the Securities. BAS, when acting as Remarketing
Agent hereunder or under the Secondary Purchase Agreement or when acting in its
individual or any other capacity, may, to the extent permitted by law, buy,
sell, hold or deal in any of the Preferred Securities or Subordinated Notes. The
Remarketing Agent may exercise any vote or join in any action with respect to
any Preferred Securities or Subordinated Notes owned by it with like effect as
if it did not act in any capacity hereunder. BAS, in its individual capacity,
either as principal or agent, may also engage in or have an interest in any
financial or other transaction with the Company as freely as if it did not act
in any capacity hereunder.

         SECTION 12. Offering Memorandum. Promptly following its receipt of a
Remarketing Notice pursuant to Section 5(a)(i), the Company shall furnish an
offering memorandum (the "OFFERING MEMORANDUM") to the Remarketing Agent, in
form and substance reasonably satisfactory to the Remarketing Agent, to be used
in the remarketing by the Secondary Purchaser or purchasers under the Secondary
Purchase Agreement, and shall pay all expenses relating to the preparation and
furnishing of such Offering Memorandum.

         SECTION 13. Conditions to the Remarketing Agent's Obligations. (a) The
obligations of the Remarketing Agent, the Secondary Purchaser and any other
purchasers to perform their respective obligations hereunder and under the
Secondary Purchase Agreement shall be subject to the terms and conditions of the
Secondary Purchase Agreement.

          (b) If at any time during the term of this Agreement, any Event of
Default under the Indenture or any Event of Default under the Trust Agreement,
or event that with the passage of time or the giving of notice or both would

                                       16
<PAGE>   18
become an Event of Default under the Indenture or an Event of Default under the
Trust Agreement, has occurred and is continuing under the Indenture or the Trust
Agreement, then the obligations and duties of the Remarketing Agent under this
Agreement shall be suspended until such default or event has been cured. The
Trust shall cause the Property Trustee to provide to the Remarketing Agent
notice of all such defaults and events of which the Property Trustee is aware
and the Company shall cause the Indenture Trustee to provide to the Remarketing
Agent notice of all such defaults and events of which the Indenture Trustee is
aware.

         SECTION 14. Indemnification. The Company shall indemnify and hold
harmless the Remarketing Agent and its officers and employees from and against
all actions, claims, damages, liabilities and losses, and costs and expenses
related thereto (including reasonable legal fees and costs) relating to or
arising out of actions or omissions in any capacity hereunder and in any
capacity as Calculation Agent under the Trust Agreement and the Indenture,
except actions, claims, damages, liabilities, losses, costs and expenses to the
extent caused by (a) the bad faith, gross negligence or wilful misconduct of
such indemnified party or (b) the breach by the Remarketing Agent of its
representations, warranties and covenants hereunder. This Section 14 shall
survive the termination of the Agreement, the Trust Agreement, the Indenture and
the payment in full of all obligations under the Preferred Securities or the
Subordinated Notes, as the case may be, and this Agreement, whether by purchase,
repurchase, redemption or otherwise.

         SECTION 15. Remarketing Agent's Performance: Duty of Care; Power of
Attorney. The duties and obligations of the Remarketing Agent hereunder shall be
determined solely by the express provisions of this Agreement and the Secondary
Purchase Agreement.

         The Remarketing Agent hereby accepts the obligation set forth in the
Trust Agreement and the Indenture to act as attorney-in-fact for the holders of
the Preferred Securities or Subordinated Notes, as the case may be.

         SECTION 16. Expenses. The Company shall pay the reasonable fees and
disbursements of the Remarketing Agent's counsel incurred in connection with any
Remarketing, including any Renewed Remarketing and any Failed Remarketing and
the Company shall pay the reasonable fees, expenses and disbursements of the
Remarketing Agent and its counsel in connection with the execution and delivery
of the Secondary Purchase Agreement.

         SECTION 17.  Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without reference
to the choice of law rules thereof.

                                       17
<PAGE>   19
         SECTION 18. Term of Agreement. Unless otherwise terminated in
accordance with the provisions hereof and except as otherwise provided herein,
this Agreement shall remain in full force and effect from the date hereof until
30 days after the earlier of (i) the date all Preferred Securities (or, if
applicable, Subordinated Notes) shall have been redeemed or purchased pursuant
to Section 8 hereof and (ii) the Reset Date in connection with a Remarketing
that is not a Failed Remarketing.

         SECTION 19. Successors and Assigns. The rights and obligations of the
Company hereunder may not be assigned or delegated to any other person without
the prior written consent of the Remarketing Agent. Subject to the provisions of
Section 10, the rights and obligations of the Remarketing Agent hereunder may
not be assigned or delegated to any other person without the prior written
consent of the Company. This Agreement shall inure to the benefit of and be
binding upon the Trust, the Company and the Remarketing Agent and their
respective successors and assigns. The terms "successors" and "assigns" shall
not include any purchaser of Preferred Securities or Subordinated Notes merely
as a result of such purchase. This Agreement shall inure to the benefit of the
Holders of the Preferred Securities (or, if applicable, holders of the
Subordinated Notes).

         SECTION 20. Headings. Section headings have been inserted in this
Agreement as a matter of convenience of reference only, and it is agreed that
such section headings are not a part of this Agreement and shall not be used in
the interpretation of any provision of this Agreement.

         SECTION 21. Severability. If any provision of this Agreement shall be
held or deemed to be or shall, in fact, be invalid, inoperative or unenforceable
as applied in any particular case in any or all jurisdictions because it
conflicts with any provisions of any constitution, statute, rule or public
policy or for any other reason, such circumstances shall not have the effect of
rendering the provision in question invalid, inoperative or unenforceable in any
other case, circumstances or jurisdiction, or of rendering any other provision
or provisions of this Agreement invalid, inoperative or unenforceable to any
extent whatsoever.

         SECTION 22. Counterparts. This Agreement may be executed in
counterparts, each of which shall be regarded as an original and all of which
shall constitute one and the same document.

         SECTION 23. Amendments. This Agreement may be amended by any instrument
in writing signed by the parties hereto; provided that any amendment to Section
5 shall require the consent of all Holders of the Preferred Securities (or,
following the distribution of Subordinated Notes to Holders of the Preferred
Securities upon dissolution of the Trust, the Subordinated Notes).

                                       18
<PAGE>   20
         SECTION 24. Notices. Unless otherwise specified, any notices, requests,
consents or other communications given or made hereunder or pursuant hereto
shall be made in writing or transmitted by any standard form of
telecommunication, including telephone, telegraph or telecopy, and confirmed in
writing. All written notices and confirmations of notices by telecommunication
shall be deemed to have been validly given or made when delivered or mailed,
registered or certified mail, return receipt requested and postage prepaid. All
such notices, requests, consents or other communications shall be addressed as
follows:

         if to the Company, to:

                           Hercules Incorporated
                           Hercules Plaza
                           1313 North Market Street
                           Wilmington, DE 19894-0001
                           Facsimile:
                           Attention: Vice President and Treasurer
                           (with a copy to General Counsel)

                  if to the Trust, to:

                           Hercules Trust V
                           c/o Hercules Incorporated
                           Hercules Plaza
                           1313 North Market Street
                           Wilmington, DE 19894-0001
                           Facsimile:
                           Attention: Vice President and Treasurer
                           (with a copy to General Counsel)

and if to the Remarketing Agent, to:

                           Banc of America Securities LLC
                           9 West 57th Street
                           New York, NY 10019
                           Facsimile: (212) 847-5124
                           Attention: William Caccamise

or to such other address as any of the above shall specify to the other in
writing.

         SECTION 25. Extension Fee. (a) Sponsor agrees to pay to BAS an
extension fee (the "EXTENSION FEE") in the amount of 2.25% of the aggregate
Liquidation Amount of the Preferred Securities in consideration for the
extension of (i) the Mandatory Redemption Date of the Securities (as set forth
in Section

                                       19
<PAGE>   21
1.01 of Amendment No. 4 to the Trust Agreement) and (ii) the Maturity Date of
the Subordinated Notes (as set forth in Section 1.01 of the Sixth Supplemental
Indenture). The Extension Fee shall be payable upon execution of this Agreement.

          (b) In the event of a Remarketing, BAS shall repay to the Company a
pro rata portion of the Extension Fee. The pro rata portion of the Extension Fee
referred to in the immediately preceding sentence shall be calculated by
multiplying (i) the total amount of the Extension Fee by (ii) the number of days
from and including the Remarketing Settlement Date to and including February 9,
2002 over the number of days from and including February 9, 2000 to and
including February 9, 2002.

                                       20
<PAGE>   22
         IN WITNESS WHEREOF, each of the Company, the Trust and the Remarketing
Agent has caused this Remarketing Agreement to be executed in its name and on
its behalf by one of its duly authorized officers as of the date first above
written.

                                       HERCULES INCORPORATED

                                       By:  ___________________________________
                                            Name:
                                            Title:

                                       HERCULES TRUST V

                                       By:  ___________________________________
                                            Name:
                                            Title:

Confirmed and Accepted
  as of the date hereof:

BANC OF AMERICA
SECURITIES LLC, not individually,
  but solely as Remarketing Agent

By: _____________________________________
    Name:
    Title:

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