Document:

Exhibit 4(m)(iii)

                      TRUST SECURITIES GUARANTEE AGREEMENT

                                      Among

                      American Electric Power Company, Inc.
                                 (as Guarantor)

                                       and

                         ------------------------------
                             (as Guarantee Trustee)

                        Relating to AEP Capital Trust III

                                   dated as of

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
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<S>                      <C>                                                                                     <C>
                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.01             Definitions..............................................................................1

                                   ARTICLE II

                               TRUST INDENTURE ACT

SECTION 2.01             Trust Indenture Act; Application.........................................................3
SECTION 2.02             Lists of Holders of [Preferred Trust] Securities.........................................3
SECTION 2.03             Reports by the Guarantee Trustee.........................................................3
SECTION 2.04             Periodic Reports to Guarantee Trustee....................................................3
SECTION 2.05             Evidence of Compliance with Conditions Precedent.........................................4
SECTION 2.06             Events of Default; Waiver................................................................4
SECTION 2.07             Event of Default; Notice.................................................................4
SECTION 2.08             Conflicting Interests....................................................................4

                                   ARTICLE III

                 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE

SECTION 3.01             Powers and Duties of the Guarantee Trustee...............................................4
SECTION 3.02             Certain Rights of Guarantee Trustee......................................................5
SECTION 3.03             Not Responsible for Recitals or Issuance of Guarantee....................................7

                                   ARTICLE IV

                                GUARANTEE TRUSTEE

SECTION 4.01             Guarantee Trustee; Eligibility...........................................................7
SECTION 4.02             Compensation, Reimbursement and Indemnity................................................7
SECTION 4.03             Appointment, Removal and Resignation of Guarantee Trustee................................8

                                    ARTICLE V

                                    GUARANTEE

SECTION 5.01             Guarantee................................................................................8
SECTION 5.02             Waiver of Notice and Demand..............................................................8
SECTION 5.03             Obligations Not Affected.................................................................8
SECTION 5.04             Rights of Holders........................................................................9
SECTION 5.05             Guarantee of Payment.....................................................................9
SECTION 5.06             Subrogation..............................................................................9
SECTION 5.07             Independent Obligations.................................................................10

                                   ARTICLE VI

                                  SUBORDINATION
</TABLE>

                                      (i)

<PAGE>

<TABLE>
<S>                      <C>                                                                                     <C>
SECTION 6.01             Subordination...........................................................................10

                                   ARTICLE VII

                                   TERMINATION

SECTION 7.01             Termination.............................................................................10

                                  ARTICLE VIII

                                  MISCELLANEOUS

SECTION 8.01             Successors and Assigns..................................................................10
SECTION 8.02             Amendments..............................................................................10
SECTION 8.03             Notices.................................................................................10
SECTION 8.04             Benefit.................................................................................11
SECTION 8.05             Interpretation..........................................................................11
SECTION 8.06             Governing Law...........................................................................12
SECTION 8.07             Counterparts............................................................................12
</TABLE>

                                      (ii)

<PAGE>

                             CROSS-REFERENCE TABLE*
                             ----------------------

Section of                                                   Section of
Trust Indenture Act                                          Guarantee
of 1939, as amended                                          Agreement
-------------------                                          ---------
310(a)......................................................  4.01(a)
310(b)......................................................  4.01(c), 2.08
310(c)......................................................  Inapplicable
311(a)......................................................  2.02(b)
311(b)......................................................  2.02(b)
311(c)......................................................  Inapplicable
312(a)......................................................  2.02(a)
312(b)......................................................  2.02(b)
313.........................................................  2.03
314(a)......................................................  2.04
314(b)......................................................  Inapplicable
314(c)......................................................  2.05
314(d)......................................................  Inapplicable
314(e)......................................................  1.01, 2.05, 3.02
314(f)......................................................  2.01
315(a)......................................................  3.01, 3.02
315(b)......................................................  2.07
315(c)......................................................  3.01
315(d)......................................................  3.01(c)
316(a)......................................................  5.04, 2.06
316(b)......................................................  5.03
316(c)......................................................  8.02
317(a)......................................................  Inapplicable
317(b)......................................................  Inapplicable
318(a)......................................................  2.01(b)
318(b)......................................................  2.01
318(c)......................................................  2.01(a)

-------------
*    This Cross-Reference Table does not constitute part of the Guarantee
     Agreement and shall not affect the interpretation of any of its terms or
     provisions.

                                      (iii)

<PAGE>

                      TRUST SECURITIES GUARANTEE AGREEMENT

     This TRUST SECURITIES GUARANTEE AGREEMENT ("Guarantee Agreement"), dated as
of ____________, is executed and delivered by American Electric Power Company,
Inc., a New York corporation (the "Guarantor"), and
______________________________, as trustee (the "Guarantee Trustee"), for the
benefit of the Holders (as defined herein) from time to time of the Preferred
Trust Securities [and Common Trust Securities] ([each] as defined herein [and
together, the "Securities"]) of AEP Capital Trust III, a Delaware statutory
business trust (the "Issuer").

     WHEREAS, pursuant to an Amended and Restated Trust Agreement (the "Trust
Agreement"), dated as of _____________among the Trustees named therein, American
Electric Power Company, Inc., as Depositor and Trust Securities Guarantor and
the several Holders (as defined therein), the Issuer is issuing as of the date
hereof $_____________ aggregate Liquidation Amount of its __%
___________________________ Securities (the "Preferred Trust Securities")
representing undivided beneficial interests in the assets of the Issuer and
having the terms set forth in the Trust Agreement;

     WHEREAS, the Preferred Trust Securities are to be issued for sale by the
Issuer and the proceeds [thereof, together with the proceeds from the issuance
of the Issuer's Common Trust Securities (as defined herein)] are to be invested
in $___________ principal amount of Debentures (as defined in the Trust
Agreement) [of the Debenture Issuer, which Debentures will be deposited with
Wilmington Trust Company, as Property Trustee under the Trust Agreement, as
trust assets]; and

     WHEREAS, as an incentive for Holders to purchase Preferred Trust
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth herein, to pay to the Holders the Guarantee Payments (as
defined herein) and to make certain other payments on the terms and conditions
set forth herein;

     NOW, THEREFORE, in consideration of the purchase of Debentures, which
purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor
executes and delivers this Guarantee Agreement for the benefit of the Holders
from time to time.

                                    ARTICLE I

                                   DEFINITIONS

     SECTION 1.01 Definitions.As used in this Guarantee Agreement, the terms set
forth below shall, unless the context otherwise requires, have the following
meanings. Capitalized or otherwise defined terms used but not otherwise defined
herein shall have the meanings assigned to such terms in the Trust Agreement as
in effect on the date hereof.

     "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

     ["Common Trust Securities" means the common securities representing
undivided beneficial interests in the assets of the Issuer that will be issued
to American Electric Power Company, Inc., as Depositor.]

     "Event of Default" means a default by the Guarantor on any of its payment
or other obligations under this Guarantee Agreement; provided, however, that,
except with respect to a default in payment of any Guarantee Payments, the
Guarantor shall have received notice of default from the Guarantee Trustee or
any Holder (with a copy to the Guarantee Trustee) and shall not have cured such
default within 90 days after receipt of such notice.

<PAGE>

     "Guarantee Payments" means the following payments or distributions, without
duplication, with respect to the [Preferred Trust] Securities, to the extent not
paid or made by or on behalf of the Issuer: (i) any accrued and unpaid
Distributions that are required to be paid on such [Preferred Trust] Securities
but only if and to the extent that the Property Trustee has available in the
Payment Account funds sufficient to make such payment at such time, (ii) the
redemption price (the "Redemption Price"), and all accrued and unpaid
Distributions to the date of redemption, with respect to the [Preferred Trust]
Securities called for redemption by the Issuer but only if and to the extent
that the Property Trustee has available in the Payment Account funds sufficient
to make such payment, (iii) upon a voluntary or involuntary dissolution,
winding-up or termination of the Issuer (other than in connection with the
distribution of Debentures to the Holders in exchange for [Preferred Trust]
Securities as provided in the Trust Agreement or upon a redemption of all of the
[Preferred Trust] Securities upon maturity or redemption of the Debentures as
provided in the Trust Agreement), the lesser of (a) the aggregate of the
Liquidation Amount of all [Preferred Trust] Securities and all accrued and
unpaid Distributions on the [Preferred Trust] Securities to the date of payment
but only if and to the extent that the Property Trustee has available in the
Payment Account funds sufficient to make such payment at such time, and (b) the
amount of assets of the Issuer remaining available for distribution to Holders
in liquidation of the Issuer after satisfaction of liabilities to creditors of
the Issuer as required by applicable law (in either case, the "Liquidation
Distribution").

     "Guarantee Trustee" means ______________________________, until a Successor
Guarantee Trustee has been appointed and has accepted such appointment pursuant
to the terms of this Guarantee Agreement and thereafter means each such
Successor Guarantee Trustee.

     "Holder" means a Person in whose name a [Preferred Trust] Security or
[Preferred Trust] Securities is registered in the Securities Register; provided,
however, that in determining whether the holders of the requisite percentage of
[Preferred Trust] Securities have given any request, notice, consent or waiver
hereunder, "Holder" shall not include the Guarantor or any Affiliate of the
Guarantor.

     "Majority in Liquidation Amount of the [Preferred Trust] Securities" means
a vote by Holders, voting separately as a class, of more than 50% of the
aggregate Liquidation Amount of all then outstanding [Preferred Trust]
Securities.

     "Officer's Certificate" means a certificate signed by the Chairman or a
Vice Chairman of the Board of Directors, the President, any Vice President, the
Treasurer, or any Assistant Treasurer of the Guarantor, and delivered to the
Guarantee Trustee. Any Officer's Certificate or Opinion of Counsel delivered
with respect to compliance with a condition or covenant provided for in this
Guarantee Agreement shall include:

          (a) a statement that the officer or counsel signing the Officer's
     Certificate or the Opinion of Counsel has read the covenant or condition
     and the definitions relating thereto;

          (b) a brief statement of the nature and scope of the examination or
     investigation undertaken by each officer in rendering the Officer's
     Certificate or the Opinion of Counsel;

          (c) a statement that each such officer or counsel has made such
     examination or investigation as, in such officer's or counsel's opinion, is
     necessary to enable such officer or counsel to express an informed opinion
     as to whether or not such covenant or condition has been complied with; and

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

     "Opinion of Counsel" means a written opinion of counsel, who may be counsel
for the Guarantee Trustee or the Guarantor or an Affiliate of the Guarantor, or
an employee or any thereof, who shall be acceptable to the Guarantee Trustee.

     "Person" means any individual, corporation, partnership, joint venture,
trust, limited liability company, unincorporated organization or government, or
any agency or political subdivision thereof, or any other entity of whatever
nature.

                                      -2-

<PAGE>

     "Responsible Officer" means, with respect to the Guarantee Trustee, any
vice-president, any assistant vice-president, the secretary, any assistant
secretary, the treasurer, any assistant treasurer, any senior trust officer, any
trust officer or assistant trust officer or any other officer in the Corporate
Trust Department of the Guarantee Trustee customarily performing functions
similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer to
whom such matter is referred because of that officer's knowledge of and
familiarity with the particular subject.

     "Subordinated Indenture" means the Indenture dated as of ____________,
____, among the Guarantor, the Debenture Issuer and
______________________________, as trustee pursuant to which the Debentures are
issued, together with any indenture supplemental thereto.

     "Successor Guarantee Trustee" means a successor Guarantee Trustee
possessing the qualifications to act as Guarantee Trustee under Section 4.01.

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended.

                                   ARTICLE II

                               TRUST INDENTURE ACT

     SECTION 2.01 Trust Indenture Act; Application.(a) This Guarantee Agreement
is subject to the provisions of the Trust Indenture Act that are required or
deemed to be part of this Guarantee Agreement and shall, to the extent
applicable, be governed by such provisions; and

          (b) if and to the extent that any provision of this Guarantee
     Agreement limits, qualifies or conflicts with the duties imposed by Section
     310 to 317, inclusive, of the Trust Indenture Act, such imposed duties
     shall control.

     SECTION 2.02 Lists of Holders of [Preferred Trust] Securities.(a) The
Guarantor shall furnish or cause to be furnished to the Guarantee Trustee (a)
semiannually, not later than ________ __ and ____ __ in each year, a list, in
such form as the Guarantee Trustee may reasonably require, of the names and
addresses of the Holders ("List of Holders") as of a date not more than 15 days
prior to the delivery thereof, and (b) at such other times as the Guarantee
Trustee may request in writing, within 30 days after the receipt by the
Guarantor of any such request, a List of Holders as of a date not more than 15
days prior to the time such list is furnished; provided that, the Guarantor
shall not be obligated to provide such List of Holders at any time the List of
Holders does not differ from the most recent List of Holders given to the
Guarantee Trustee by the Guarantor. The Guarantee Trustee may destroy any List
of Holders previously given to it on receipt of a new List of Holders.

          (b) The Guarantee Trustee shall comply with its obligations under
     Section 311(a) of the Trust Indenture Act, subject to the provisions of
     Section 311(b) of the Trust Indenture Act, and Section 312(b) of the Trust
     Indenture Act.

     SECTION 2.03 Reports by the Guarantee Trustee.Within 60 days after each
____________, commencing ________________, the Guarantee Trustee shall provide
to the Holders such reports, if any, as are required by Section 313(a) of the
Trust Indenture Act in the form and in the manner provided by Section 313(a) of
the Trust Indenture Act. Any such report shall be dated as of the next preceding
____________. The Guarantee Trustee shall also comply with the other
requirements of Section 313 of the Trust Indenture Act.

     SECTION 2.04 Periodic Reports to Guarantee Trustee.The Guarantor shall
provide to the Guarantee Trustee, the Securities and Exchange Commission and the
Holders such documents, reports and information, if any, as required by Section
314 of the Trust Indenture Act and the compliance certificate required by
Section 314(a)(4) of the Trust Indenture Act in the form, in the manner and at
the times required by Section 314 of

                                      -3-

<PAGE>

the Trust Indenture Act, provided that such compliance certificate shall be
delivered annually on or before _________ in each year, beginning _____________.

     SECTION 2.05 Evidence of Compliance with Conditions Precedent.The Guarantor
shall provide to the Guarantee Trustee such evidence of compliance with any
conditions precedent provided for in this Guarantee Agreement as and to the
extent required by Section 314(c) of the Trust Indenture Act. Any certificate or
opinion required to be given by an officer pursuant to Section 314(c) of the
Trust Indenture Act may be given in the form of an Officer's Certificate.

     SECTION 2.06 Events of Default; Waiver.(a) The Holders of a Majority in
Liquidation Amount of [Preferred Trust] Securities may, by vote, on behalf of
all of the Holders, waive any past Event of Default and its consequences. Upon
such waiver, any such Event of Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Guarantee Agreement, but no such waiver shall extend to any subsequent
or other default or Event of Default or impair any right consequent thereon.

          (b) The right of any Holder to receive payment of the Guarantee
     Payments in accordance with this Guarantee Agreement, or to institute suit
     for the enforcement of any such payment, shall not be impaired without the
     consent of each such Holder.

     SECTION 2.07 Event of Default; Notice.(a) The Guarantee Trustee shall,
within 90 days after the occurrence of an Event of Default, transmit by mail,
first class postage prepaid, to the Holders, a notice of such Event of Default
known to the Guarantee Trustee, unless such default shall have been cured or
waived before the giving of such notice, provided that, except in the case of a
default in the payment of a Guarantee Payment, the Guarantee Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee, or a trust committee of directors or Responsible
Officers of the Guarantee Trustee in good faith determines that the withholding
of such notice is in the interests of the Holders.

          (b) The Guarantee Trustee shall not be deemed to have knowledge of any
     Event of Default unless the Guarantee Trustee shall have received written
     notice, or a Responsible Officer of the Guarantee Trustee charged with the
     administration of this Guarantee Agreement shall have received written
     notice, in each case from the Guarantor or a Holder, of such Event of
     Default.

     SECTION 2.08 Conflicting Interests.The Trust Agreement, the Subordinated
Indenture and the securities of any series issued thereunder [OTHERS] shall be
deemed to be specifically described in this Guarantee Agreement for the purposes
of clause (i) of the first proviso contained in Section 310(b) of the Trust
Indenture Act.

                                   ARTICLE III

                 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE

     SECTION 3.01 Powers and Duties of the Guarantee Trustee.(a) This Guarantee
Agreement shall be held by the Guarantee Trustee for the benefit of the Holders,
and the Guarantee Trustee shall not transfer this Guarantee Agreement or any
rights hereunder to any Person except a Holder exercising his or her rights
pursuant to Section 5.04 or to a Successor Guarantee Trustee on acceptance by
such Successor Guarantee Trustee of its appointment to act as Successor
Guarantee Trustee. The right, title and interest of the Guarantee Trustee shall
automatically vest in any Successor Guarantee Trustee, and such vesting and
cessation of title shall be effective whether or not conveyancing documents have
been executed and delivered pursuant to the appointment of such Successor
Guarantee Trustee.

          (b) The Guarantee Trustee, prior to the occurrence of any Event of
     Default and after the curing or waiving of all Events of Default that may
     have occurred, shall undertake to perform such duties and only such duties
     as are specifically set forth in this Guarantee Agreement, and no implied
     covenants or

                                      -4-

<PAGE>

     obligations shall be read into this Guarantee Agreement against the
     Guarantee Trustee. In case an Event of Default has occurred (that has not
     been cured or waived pursuant to Section 2.06), the Guarantee Trustee shall
     exercise such of the rights and powers vested in it by this Guarantee
     Agreement, and use the same degree of care and skill in its exercise
     thereof, as a prudent person would exercise or use under the circumstances
     in the conduct of his or her own affairs.

          (c) No provision of this Guarantee Agreement shall be construed to
     relieve the Guarantee Trustee from liability for its own negligent action,
     its own negligent failure to act, or its own willful misconduct, except
     that:

               (i) prior to the occurrence of any Event of Default and after the
          curing or waiving of all such Events of Default that may have
          occurred:

                    (A) the duties and obligations of the Guarantee Trustee
               shall be determined solely by the express provisions of this
               Guarantee Agreement, and the Guarantee Trustee shall not be
               liable except for the performance of such duties and obligations
               as are specifically set forth in this Guarantee Agreement; and

                    (B) in the absence of bad faith on the part of the Guarantee
               Trustee, the Guarantee Trustee may conclusively rely, as to the
               truth of the statements and the correctness of the opinions
               expressed therein, upon any certificates or opinions furnished to
               the Guarantee Trustee and conforming to the requirements of this
               Guarantee Agreement; but in the case of any such certificates or
               opinions that by any provision hereof or of the Trust Indenture
               Act are specifically required to be furnished to the Guarantee
               Trustee, the Guarantee Trustee shall be under a duty to examine
               the same to determine whether or not they conform to the
               requirements of this Guarantee Agreement;

               (ii) the Guarantee Trustee shall not be liable for any error of
          judgment made in good faith by a Responsible Officer of the Guarantee
          Trustee, unless it shall be proved that the Guarantee Trustee was
          negligent in ascertaining the pertinent facts upon which such judgment
          was made;

               (iii) the Guarantee Trustee shall not be liable with respect to
          any action taken or omitted to be taken by it in good faith in
          accordance with the direction of the Holders of a Majority in
          Liquidation Amount of the [Preferred Trust] Securities relating to the
          time, method and place of conducting any proceeding for any remedy
          available to the Guarantee Trustee, or exercising any trust or power
          conferred upon the Guarantee Trustee under this Guarantee Agreement;
          and

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

     SECTION 3.02 Certain Rights of Guarantee Trustee.(a) Subject to the
provisions of Section 3.01:

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

                                      -5-

<PAGE>

               (ii) any direction or act of the Guarantor contemplated by this
          Guarantee Agreement shall be sufficiently evidenced by an Officer's
          Certificate, or as otherwise expressly provided herein;

               (iii) whenever, in the administration of this Guarantee
          Agreement, the Guarantee Trustee shall deem it desirable that a matter
          be proved or established before taking, suffering or omitting to take
          any action hereunder, the Guarantee Trustee (unless other evidence is
          herein specifically prescribed) may, in the absence of bad faith on
          its part, request and rely upon an Officer's Certificate which, upon
          receipt of such request from the Guarantee Trustee, shall be promptly
          delivered by the Guarantor;

               (iv) the Guarantee Trustee may consult with counsel of its
          choice, and the written advice or Opinion of Counsel with respect to
          legal matters shall be full and complete authorization and protection
          in respect of any action taken, suffered or omitted by it hereunder in
          good faith and in accordance with such advice or opinion; such counsel
          may be counsel to the Guarantee Trustee, the Guarantor or any of its
          Affiliates and may include any of its employees; the Guarantee Trustee
          shall have the right at any time to seek instructions concerning the
          administration of this Guarantee Agreement from any court of competent
          jurisdiction;

               (v) the Guarantee Trustee shall be under no obligation to
          exercise any of the rights or powers vested in it by this Guarantee
          Agreement at the request or direction of any Holder, unless such
          Holder shall have provided to the Guarantee Trustee such adequate
          security and indemnity as would satisfy a reasonable person in the
          position of the Guarantee Trustee, against the costs, expenses
          (including attorneys' fees and expenses) and liabilities that might be
          incurred by it in complying with such request or direction, including
          such reasonable advances as may be requested by the Guarantee Trustee;
          provided that, nothing contained in this Section 3.02(a)(v) shall be
          taken to relieve the Guarantee Trustee, upon the occurrence and
          continuance of an Event of Default, of its obligation under the last
          sentence of Section 3.01(b) to exercise the rights and powers vested
          in it by this Guarantee Agreement;

               (vi) the Guarantee Trustee shall not be bound to make any
          investigation into the facts or matters stated in any resolution,
          certificate, statement, instrument, opinion, report, notice, request,
          direction, consent, order, bond, debenture, note, other evidence of
          indebtedness or other paper or document, but the Guarantee Trustee, in
          its discretion, may make such further inquiry or investigation into
          such facts or matters as it may see fit;

               (vii) the Guarantee Trustee may execute any of the trusts or
          powers hereunder or perform any duties hereunder either directly or by
          or through agents or attorneys, and the Guarantee Trustee shall not be
          responsible for any misconduct or negligence on the part of any such
          agent or attorney appointed with due care by it hereunder;

               (viii) whenever in the administration of this Guarantee Agreement
          the Guarantee Trustee shall deem it desirable to receive instructions
          with respect to enforcing any remedy or right or taking any other
          action hereunder, the Guarantee Trustee (1) may request instructions
          from the Holders of a Majority in Liquidation Amount of the Preferred
          Trust Securities, (2) may refrain from enforcing such remedy or right
          or taking such other action until such instructions are received, and
          (3) shall be protected in relying on or acting in accordance with such
          instructions;

               (ix) the Guarantee Trustee shall have no duty to see to any
          recording, filing or registration of any instrument (including any
          financing or continuation statement or any tax or securities form) (or
          any rerecording, refiling or re-registration thereof); and

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

                                      -6-

<PAGE>

          (c) No provision of this Guarantee Agreement shall be deemed to impose
     any duty or obligation on the Guarantee Trustee to perform any act or acts
     or exercise any right, power, duty or obligation conferred or imposed on it
     in any jurisdiction in which it shall be illegal, or in which the Guarantee
     Trustee shall be unqualified or incompetent in accordance with applicable
     law, to perform any such act or acts or to exercise any such right, power,
     duty or obligation. No permissive power or authority available to the
     Guarantee Trustee shall be construed to be a duty to act in accordance with
     such power or authority.

     SECTION 3.03 Not Responsible for Recitals or Issuance of Guarantee.The
recitals contained in this Guarantee Agreement shall be taken as the statements
of the Guarantor, and the Guarantee Trustee does not assume any responsibility
for their correctness. The Guarantee Trustee makes no representation as to the
validity or sufficiency of this Guarantee Agreement.

                                   ARTICLE IV

                                GUARANTEE TRUSTEE

     SECTION 4.01 Guarantee Trustee; Eligibility.(a) There shall at all times be
a Guarantee Trustee which shall:

               (i) not be an Affiliate of the Guarantor; and

               (ii) be a corporation organized and doing business under the laws
          of the United States of America or any State or Territory thereof or
          of the District of Columbia, or a corporation or Person permitted by
          the Securities and Exchange Commission to act as an institutional
          trustee under the Trust Indenture Act, authorized under such laws to
          exercise corporate trust powers, having a combined capital and surplus
          of at least 50 million U.S. dollars ($50,000,000), and subject to
          supervision or examination by Federal, State, Territorial or District
          of Columbia authority. If such corporation publishes reports of
          condition at least annually, pursuant to law or to the requirements of
          the supervising or examining authority referred to above, then, for
          the purposes of this Section 4.01(a)(ii), the combined capital and
          surplus of such corporation shall be deemed to be its combined capital
          and surplus as set forth in its most recent report of condition so
          published.

          (b) If at any time the Guarantee Trustee shall cease to be eligible to
     so act under Section 4.01(a), the Guarantee Trustee shall immediately
     resign in the manner and with the effect set out in Section 4.03(c).

          (c) If the Guarantee Trustee has or shall acquire any "conflicting
     interest" within the meaning of Section 310(b) of the Trust Indenture Act,
     the Guarantee Trustee and Guarantor shall in all respects comply with the
     provisions of Section 310(b) of the Trust Indenture Act.

     SECTION 4.02 Compensation, Reimbursement and Indemnity.The Guarantor agrees
to pay to the Guarantee Trustee from time to time reasonable compensation for
all services rendered by it hereunder (which compensation shall not be limited
by any provision of law in regard to the compensation of a trustee of an express
trust), to reimburse the Guarantee Trustee upon request for all reasonable
expenses, disbursements and advances (including the reasonable fees and expenses
of its attorneys and agents) incurred or made by the Guarantee Trustee in
accordance with any provision of this Guarantee Agreement and to indemnify each
of the Guarantee Trustee and any predecessor Guarantee Trustee for, and to hold
it harmless against, any and all loss, damage, claim, liability or expense,
including taxes (other than taxes based upon the income of the Guarantee
Trustee) incurred without negligence, willful misconduct or bad faith on its
part, arising out of or in connection with the acceptance of the trusts created
by, or the administration of, this Guarantee Agreement, including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder. The
obligations of the Guarantor under this Section shall survive the termination of
this Guarantee Agreement and the resignation or removal of the Guarantee
Trustee.

                                      -7-

<PAGE>

     SECTION 4.03 Appointment, Removal and Resignation of Guarantee Trustee.(a)
Subject to Section 4.03(b), the Guarantee Trustee may be appointed or removed
without cause at any time by the Guarantor.

          (b) The Guarantee Trustee shall not be removed until a Successor
     Guarantee Trustee has been appointed by the Guarantor and has accepted such
     appointment by written instrument executed by such Successor Guarantee
     Trustee and delivered to the Guarantor.

          (c) The Guarantee Trustee appointed to office shall hold office until
     a Successor Guarantee Trustee shall have been appointed or until its
     removal or resignation. The Guarantee Trustee may resign from office
     (without need for prior or subsequent accounting) by an instrument in
     writing executed by the Guarantee Trustee and delivered to the Guarantor,
     which resignation shall not take effect until a Successor Guarantee Trustee
     has been appointed and has accepted such appointment by instrument in
     writing executed by such Successor Guarantee Trustee and delivered to the
     Guarantor and the resigning Guarantee Trustee.

          (d) If no Successor Guarantee Trustee shall have been appointed and
     accepted appointment as provided in this Section 4.02 within 60 days after
     delivery to the Guarantor of an instrument of resignation or removal, the
     Guarantee Trustee resigning or being removed may petition any court of
     competent jurisdiction for appointment of a Successor Guarantee Trustee.
     Such court may thereupon, after prescribing such notice, if any, as it may
     deem proper, appoint a Successor Guarantee Trustee.

          (e) No Guarantee Trustee shall be liable for the acts or omissions to
     act of any Successor Guarantee Trustee.

                                    ARTICLE V

                                    GUARANTEE

     SECTION 5.01 Guarantee.The Guarantor irrevocably and unconditionally agrees
to pay in full to the Holders the Guarantee Payments (without duplication of
amounts theretofore paid by or on behalf of the Issuer), as and when due,
regardless of any defense, right of set-off or counterclaim which the Issuer may
have or assert. The Guarantor's obligation to make a Guarantee Payment may be
satisfied by direct payment of the required amounts by the Guarantor to the
Holders or by causing the Issuer to pay such amounts to the Holders.

     SECTION 5.02 Waiver of Notice and Demand.The Guarantor hereby waives notice
of acceptance of this Guarantee Agreement and of any liability to which it
applies or may apply, presentment, demand for payment, any right to require a
proceeding first against the Guarantee Trustee, Issuer or any other Person
before proceeding against the Guarantor, protest, notice of nonpayment, notice
of dishonor, notice of redemption and all other notices and demands.

     SECTION 5.03 Obligations Not Affected.The obligation of the Guarantor to
make the Guarantee Payments under this Guarantee Agreement shall in no way be
affected or impaired by reason of the happening from time to time of any of the
following:

          (a) the release or waiver, by operation of law or otherwise, of the
     performance or observance by the Issuer of any express or implied
     agreement, covenant, term or condition relating to the [Preferred Trust]
     Securities to be performed or observed by the Issuer;

          (b) the extension of time for the payment by the Issuer of all or any
     portion of the Distributions, Redemption Price, Liquidation Distribution or
     any other sums payable under the terms of the [Preferred Trust] Securities
     or the extension of time for the performance of any other obligation under,
     arising out of, or in connection with, the [Preferred Trust] Securities
     (other than an extension of time for payment of Distributions, Redemption
     Price, Liquidation Distribution or other sum payable that results

                                      -8-

<PAGE>

     from the extension of any interest payment period on the Debentures
     permitted by the Subordinated Indenture);

          (c) any failure, omission, delay or lack of diligence on the part of
     the Holders to enforce, assert or exercise any right, privilege, power or
     remedy conferred on the Holders pursuant to the terms of the [Preferred
     Trust] Securities, or any action on the part of the Issuer granting
     indulgence or extension of any kind;

          (d) the voluntary or involuntary liquidation, dissolution, sale of any
     collateral, receivership, insolvency, bankruptcy, assignment for the
     benefit of creditors, reorganization, arrangement, composition or
     readjustment of debt of, or other similar proceedings affecting, the Issuer
     or any of the assets of the Issuer;

          (e) any invalidity of, or defect or deficiency in, the [Preferred
     Trust] Securities;

          (f) the settlement or compromise of any obligation guaranteed hereby
     or hereby incurred; or

          (g) any other circumstance whatsoever that might otherwise constitute
     a legal or equitable discharge or defense of a guarantor, it being the
     intent of this Section 5.03 that the obligations of the Guarantor hereunder
     shall be absolute and unconditional under any and all circumstances.

There shall be no obligation of the Holders to give notice to, or obtain consent
of, the Guarantor with respect to the happening of any of the foregoing.

     SECTION 5.04 Rights of Holders.The Guarantor expressly acknowledges that:
(i) this Guarantee Agreement will be deposited with the Guarantee Trustee to be
held for the benefit of the Holders; (ii) the Guarantee Trustee has the right to
enforce this Guarantee Agreement on behalf of the Holders; (iii) the Holders of
a Majority in Liquidation Amount of the [Preferred Trust] Securities have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Guarantee Trustee in respect of this Guarantee Agreement
or exercising any trust or power conferred upon the Guarantee Trustee under this
Guarantee Agreement, provided, however, that, subject to Section 3.01, the
Guarantee Trustee shall have the right to decline to follow any such direction
if the Guarantee Trustee being advised by counsel determines that the action so
directed may not lawfully be taken, or if the Guarantee Trustee in good faith
shall, by a Responsible Officer or Officers of the Guarantee Trustee, determine
that the proceedings so directed would be illegal or involve it in personal
liability or be unduly prejudicial to the rights of Holders not party to such
direction, and provided further that nothing in this Trust Agreement shall
impair the right of the Guarantee Trustee to take any action deemed proper by
the Guarantee Trustee which is not inconsistent with such direction; and (iv)
any Holder may enforce this Guarantee Agreement, or institute a legal proceeding
directly against the Guarantor to enforce the Guarantee Trustee's rights under
this Guarantee Agreement without first instituting a legal proceeding against
the Issuer, the Guarantee Trustee, or any other Person.

     SECTION 5.05 Guarantee of Payment.This Guarantee Agreement creates a
guarantee of payment and not of collection. This Guarantee Agreement will not be
discharged except by payment of the Guarantee Payments in full (without
duplication) or upon the distribution of Debentures as provided in the Trust
Agreement.

     SECTION 5.06 Subrogation.The Guarantor shall be subrogated to all, if any,
rights of the Holders against the Issuer in respect of any amounts paid to the
Holders by the Guarantor under this Guarantee Agreement; provided, however, that
the Guarantor shall not (except to the extent required by mandatory provisions
of law) be entitled to enforce or exercise any rights which it may acquire by
way of subrogation or any indemnity, reimbursement or other agreement, in all
cases as a result of payment under this Guarantee Agreement, if, at the time of
any such payment, any amounts of Guarantee Payments are due and unpaid under
this Guarantee Agreement. If any amount shall be paid to the Guarantor in
violation of the preceding sentence, the Guarantor agrees to hold such amount in
trust for the Holders and to pay over such amount to the Holders.

                                      -9-

<PAGE>

     SECTION 5.07 Independent Obligations.The Guarantor acknowledges that its
obligations hereunder are independent of the obligations of the Issuer with
respect to the [Preferred Trust] Securities and that the Guarantor shall be
liable as principal and as debtor hereunder to make Guarantee Payments pursuant
to the terms of this Guarantee Agreement notwithstanding the occurrence of any
event referred to in subsections (a) through (g), inclusive, of Section 5.03.

                                   ARTICLE VI

                                  SUBORDINATION

     SECTION 6.01 Subordination.This Guarantee Agreement will constitute an
unsecured obligation of the Guarantor and will rank (i) subordinate and junior
in right of payment to all other liabilities of the Guarantor, including the
guarantee of the Debentures, except those made pari passu or subordinate by
their terms, (ii) pari passu with the most senior preferred or preference stock
now or hereafter issued by the Guarantor and with any guarantee now or hereafter
entered into by the Guarantor in respect of any preferred or preference stock of
any Affiliate of the Guarantor, and (iii) senior to all common stock of the
Guarantor. [When a Debenture Event of Default (as defined in the Trust
Agreement) occurs and is continuing, the rights of holders of the Common Trust
Securities to payment in respect of Distributions and payments upon liquidation,
redemption or otherwise are subordinated to the rights to payment of holders of
Preferred Trust Securities.] Each Person, by virtue of having become a Holder of
a Security, shall be deemed to have expressly assented and agreed to the terms
of, and shall be bound by, this Guarantee Agreement, the Trust Agreement and the
Subordinated Indenture.

                                   ARTICLE VII

                                   TERMINATION

     SECTION 7.01 Termination.This Guarantee Agreement shall terminate and be of
no further force and effect upon: (i) full payment of the Redemption Price of
all [Preferred Trust] Securities, and all accrued and unpaid Distributions to
the date of redemption, (ii) the distribution of Debentures to Holders in
exchange for all of the [Preferred Trust] Securities, or (iii) full payment of
the amounts payable in accordance with the Trust Agreement upon liquidation of
the Issuer. Notwithstanding the foregoing, this Guarantee Agreement will
continue to be effective or will be reinstated, as the case may be, if at any
time any Holder must restore payment of any sums paid with respect to [Preferred
Trust] Securities or under this Guarantee Agreement.

                                  ARTICLE VIII

                                  MISCELLANEOUS

     SECTION 8.01 Successors and Assigns.All guarantees and agreements contained
in this Guarantee Agreement shall bind the successors, assigns, receivers,
trustees and representatives of the Guarantor and shall inure to the benefit of
the Holders of the [Preferred Trust] Securities then outstanding. Except in
connection with a consolidation, merger or sale involving the Guarantor that is
permitted under Article Eleven of the Subordinated Indenture and pursuant to
which the assignee agrees in writing to perform the Guarantor's obligations
hereunder, the Guarantor shall not assign its obligations hereunder.

     SECTION 8.02 Amendments.This Guarantee Agreement may be amended only by an
instrument in writing entered into by the Guarantor and the Guarantee Trustee.
Except with respect to any changes which do not materially adversely affect the
rights of Holders (in which case no consent of Holders will be required), this
Guarantee Agreement may only be amended with the prior approval of the Holders
of not less than a majority in aggregate Liquidation Amount of all the
outstanding [Preferred Trust] Securities. Any such consent shall be deemed to be
on behalf of the holders of all the [Preferred Trust] Securities. The provisions
of Article VI of the Trust Agreement concerning meetings or consents of Holders
shall apply to the giving of such approval.

     SECTION 8.03 Notices.Any notice, request or other communication required or
permitted to be given hereunder shall be in writing, duly signed by the party
giving such notice, and delivered, telecopied or mailed by first class mail as
follows:

                                      -10-

<PAGE>

          (a) if given to the Guarantor, to the address set forth below or such
     other address or facsimile number or to the attention of such other Person
     as the Guarantor may give notice of to the Guarantee Trustee and the
     Holders of the Preferred Trust Securities:

               American Electric Power Company, Inc.
               1 Riverside Plaza
               Columbus, Ohio 43215
               Facsimile No:  614-223-1687
               Attention:  Treasurer

          (b) if given to the Issuer, in care of the Administrative Trustees, at
     the Issuer's (and the Administrative Trustees') address set forth below or
     such other address or facsimile number or to the attention of such other
     Person as the Administrative Trustees on behalf of the Issuer may give
     notice of to the Guarantee Trustee and the Holders:

               AEP Capital Trust III
               c/o American Electric Power Company, Inc.
               1 Riverside Plaza
               Columbus, Ohio 43215
               Facsimile No:  614-223-1687
               Attention:  Administrative Trustees

          (c) if given to the Guarantee Trustee, to the address set forth below
     or such other address or facsimile number or to the attention of such other
     Person as the Guarantee Trustee may give notice of to the Guarantor and the
     Holders of the Preferred Trust Securities:

               ------------------------------
               450 West 33rd Street, 15th Floor
               New York, New York _____
               Facsimile No: 212-___-____
               Attention: ____________________

          (d) if given to any Holder, at the address set forth on the books and
     records of the Issuer.

     All notices hereunder shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid, except that if a notice or other document is refused delivery
or cannot be delivered because of a changed address of which no notice was
given, such notice or other document shall be deemed to have been delivered on
the date of such refusal or inability to deliver.

     SECTION 8.04 Benefit.This Guarantee Agreement is solely for the benefit of
the Holders and, subject to Section 3.01(a), is not separately transferable from
the Preferred Trust Securities.

     SECTION 8.05 Interpretation.In this Guarantee Agreement, unless the context
otherwise requires:

          (a) a term defined anywhere in this Guarantee Agreement has the same
     meaning throughout;

          (b) all references to "the Guarantee Agreement" or "this Guarantee
     Agreement" are to this Guarantee Agreement as modified, supplemented or
     amended from time to time;

          (c) all references in this Guarantee Agreement to Articles and
     Sections are to Articles and Sections of this Guarantee Agreement unless
     otherwise specified;

                                      -11-

<PAGE>

          (d) a term defined in the Trust Indenture Act has the same meaning
     when used in this Guarantee Agreement unless otherwise defined in this
     Guarantee Agreement or unless the context otherwise requires;

          (e) a reference to the singular includes the plural and vice versa;
     and

          (f) the masculine, feminine or neuter genders used herein shall
     include the masculine, feminine and neuter genders.

     SECTION 8.06 Governing Law.THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

     SECTION 8.07 Counterparts.

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

     THIS GUARANTEE AGREEMENT is executed as of the day and year first above
written.

                                        AMERICAN ELECTRIC POWER COMPANY, INC.,
                                             As Guarantor

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

                                        ------------------------------,
                                             as Guarantee Trustee

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

                                      -12-Exhibit 4(n)

                      AMERICAN ELECTRIC POWER COMPANY, INC.

                                       AND

                              THE BANK OF NEW YORK

                       AS FORWARD PURCHASE CONTRACT AGENT

                       FORWARD PURCHASE CONTRACT AGREEMENT

                            DATED AS OF _____________

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                        PAGE

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

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

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

 ARTICLE IV. THE NOTES....................................................................................30
         Section 4.1       Payment of Interest; Rights to Interest Payments Preserved; Notice.............30
         Section 4.2       Notice and Voting..............................................................31
         Section 4.3       Tax Event Redemption...........................................................32
</TABLE>

                                       i
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                        PAGE

<S>                                                                                                       <C>
 ARTICLE V. THE FORWARD PURCHASE CONTRACTS; THE REMARKETING...............................................32
         Section 5.1       Purchase of Shares of Common Stock.............................................32
         Section 5.2       Contract Adjustment Payments...................................................34
         Section 5.3       Deferral of Contract Adjustment Payments.......................................35
         Section 5.4       Payment of Purchase Price; Remarketing.........................................37
         Section 5.5       Issuance of Shares of Common Stock.............................................42
         Section 5.6       Adjustment of Settlement Rate..................................................42
         Section 5.7       Notice of Adjustments and Certain Other Events.................................49
         Section 5.8       Termination Event; Notice......................................................50
         Section 5.9       Early Settlement...............................................................50
         Section 5.10      Early Settlement Upon Merger...................................................52
         Section 5.11      Charges and Taxes..............................................................54
         Section 5.12      No Fractional Shares...........................................................54
         Section 5.13      Tax Treatment..................................................................54

 ARTICLE VI. REMEDIES.....................................................................................54
         Section 6.1       Unconditional Right of Holders to Purchase Common Stock........................54
         Section 6.2       Restoration of Rights and Remedies.............................................55
         Section 6.3       Rights and Remedies Cumulative.................................................55
         Section 6.4       Delay or Omission Not Waiver...................................................55
         Section 6.5       Undertaking For Costs..........................................................55
         Section 6.6       Waiver of Stay or Extension Laws...............................................56

 ARTICLE VII. THE AGENT...................................................................................56
         Section 7.1       Certain Duties, Rights and Immunities..........................................56
         Section 7.2       Notice of Default..............................................................58
         Section 7.3       Certain Rights of Agent........................................................58
         Section 7.4       Not Responsible For Recitals, Etc..............................................59
         Section 7.5       May Hold Equity Units and Stripped Units and Other Dealings....................60
         Section 7.6       Money Held In Custody..........................................................60
         Section 7.7       Compensation and Reimbursement.................................................60
         Section 7.8       Corporate Agent Required; Eligibility..........................................61
         Section 7.9       Resignation and Removal; Appointment of Successor..............................61
         Section 7.10      Acceptance of Appointment By Successor.........................................62
         Section 7.11      Merger, Conversion, Consolidation or Succession to Business....................63
         Section 7.12      Preservation of Information; Communications to Holders.........................63
         Section 7.13      Failure to Act.................................................................64
         Section 7.14      No Obligations of Agent........................................................64
         Section 7.15      Tax Compliance.................................................................64

 ARTICLE VIII. SUPPLEMENTAL AGREEMENTS....................................................................65
         Section 8.1       Supplemental Agreements Without Consent of Holders.............................65
         Section 8.2       Supplemental Agreements With Consent of Holders................................66
</TABLE>

                                       ii

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                        PAGE

<S>                                                                                                       <C>
         Section 8.3       Execution of Supplemental Agreements...........................................67
         Section 8.4       Effect of Supplemental Agreements..............................................67
         Section 8.5       Reference to Supplemental Agreements...........................................67

 ARTICLE IX. CONSOLIDATION, MERGER, SALE OR CONVEYANCE....................................................67
         Section 9.1       Company May Consolidate, Etc., Only on Certain Terms...........................67
         Section 9.2       Successor Substituted..........................................................68

 ARTICLE X. COVENANTS.....................................................................................68
         Section 10.1      Performance Under Forward Purchase Contracts...................................68
         Section 10.2      Maintenance of Office or Agency................................................69
         Section 10.3      Company to Reserve Common Stock................................................69
         Section 10.4      Covenants as to Common Stock...................................................69
         Section 10.5      Statements of Officer of the Company as to Default.............................70
         Section 10.6      ERISA..........................................................................70
</TABLE>

EXHIBITS

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

                                      iii

<PAGE>

         FORWARD PURCHASE CONTRACT AGREEMENT, dated as of _____________, between
American  Electric Power Company,  Inc., a New York corporation (the "Company"),
and The Bank of New York,  a New York  banking  corporation,  acting as  Forward
Purchase  Contract Agent for the Holders of Equity Units and Stripped Units from
time to time (the "Agent").

                                    RECITALS

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

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

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

                                   ARTICLE I
                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

         Section 1.1       DEFINITIONS.

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

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

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

         "Board  Resolution"  means (i) a copy of a resolution  certified by the
Secretary or an Assistant  Secretary of the Company to have been duly adopted by
the Board of  Directors  and to be in full  force and effect on the date of such
certification  or (ii) a copy of a  unanimous  written  consent  of the Board of
Directors.

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

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

                                       2
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          "Contract  Adjustment Payments" means, in the case of Equity Units and
Stripped  Units,  the amount  payable by the Company in respect of each  Forward
Purchase  Contract  constituting a part of such Equity Units or Stripped  Units,
equal to ____% per year of the Stated Amount,  in each case computed (1) for any
full  quarterly  period on the basis of a 360-day year of twelve 30-day  months,
and (2) for any period shorter than a full quarterly  period,  on the basis of a
30-day  month

                                       3
<PAGE>

and (3) for periods of less than a month,  on the basis of the actual  number of
days elapsed per 30-day month,  plus any Deferred Contract  Adjustment  Payments
accrued pursuant to Section 5.3.

          "Corporate  Trust Office"  means the office of the Agent at which,  at
any  particular   time,  its  corporate  trust  business  shall  be  principally
administered,  which  office at the date  hereof is  located  at The Bank of New
York, 101 Barclay Street, New York, New York 10286.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       4
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       5
<PAGE>

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

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

         "Office  of the  Agent in The City of New York"  means an office  where
Certificates may be presented or surrendered for acquisition of shares of Common
Stock,  transfer or exchange,  Notes may be presented for payment or surrendered
for transfer or exchange,  and where  notices and demands to or upon the Company
in respect of Units may be served,  such office being  located  initially at 101
Barclay Street, New York, New York 10286.

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

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

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

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

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

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

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

provided, that in determining whether the Holders of the requisite number of the
Equity Units or Stripped  Units have given any request,  demand,  authorization,
direction,

                                       6
<PAGE>

notice, consent or waiver hereunder, Equity Units or Stripped Units owned by the
Company or any Affiliate of the Company shall be  disregarded  and deemed not to
be outstanding, except that, in determining whether the Agent shall be protected
in relying upon any such  request,  demand,  authorization,  direction,  notice,
consent or waiver,  only  Equity  Units or Stripped  Units  which a  Responsible
Officer  of the Agent  actually  knows to be so owned  shall be so  disregarded.
Equity  Units or Stripped  Units so owned which have been  pledged in good faith
may  be  regarded  as  Outstanding  Units  if  the  pledgee  establishes  to the
satisfaction  of the Agent the  pledgee's  right so to act with  respect to such
Equity  Units or  Stripped  Units and that the pledgee is not the Company or any
Affiliate of the Company.

         "Payment Date" means each ______________,  ___________, ___________ and
___________, commencing ___________________.

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

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

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

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

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

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

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

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

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

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

                                       7
<PAGE>

deemed to evidence the same rights and obligations of the Company and the Holder
as the mutilated, destroyed, lost or stolen Equity Units Certificate.

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

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

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

         "Quotation Agent" means J.P. Morgan Securities Inc. or its successor or
any other primary U.S. government securities dealer in New York City selected by
the Company.

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

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

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

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

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

         "Remarketing  Agent" means  Salomon  Smith Barney Inc. or its successor
under the Remarketing Agreement.

         "Remarketing   Agreement"   means  the   Remarketing   Agreement  dated
_____________ by and among the Company, the Remarketing Agent and the Agent.

         "Remarketing Date" means the third Business Day preceding ____________.

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

                                       8
<PAGE>

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

         "Remarketing Value" means

                                    (1) the value at the Remarketing Date or any
                           Subsequent  Remarketing  Date, as the case may be, of
                           either (a) U.S. Treasury securities that will pay, on
                           or prior to the  Payment  Date  falling  on the Stock
                           Purchase  Date,  an  amount  of  cash  equal  to  the
                           aggregate  interest  payment  that is scheduled to be
                           payable on that Payment  Date, on (x) the Notes which
                           are included in Equity Units and are participating in
                           the  remarketing and (y) the Separate Notes which are
                           to be  remarketed  pursuant to Section  4.5(d) of the
                           Pledge  Agreement and Section 1.6 of the Supplemental
                           Indenture,   assuming   for  that  purpose  that  the
                           interest  rate on the  Notes is  equal to the  Coupon
                           Rate, if the  remarketing  occurs prior to the fourth
                           Business Day  preceding the Stock  Purchase  Date, or
                           (b) an amount of cash equal to the aggregate interest
                           payment  that  is  scheduled  to be  payable  on that
                           Payment  Date, on (x) the Notes which are included in
                           Equity Units and are participating in the remarketing
                           and (y) the Separate Notes which are to be remarketed
                           pursuant to Section  4.5(d) of the Pledge  Agreement,
                           assuming for that  purpose that the interest  rate on
                           the  Notes  is  equal  to  the  Coupon  Rate,  if the
                           remarketing  occurs on or after the  fourth  Business
                           Day preceding the Stock Purchase Date; and

                                    (2) the value at the Remarketing Date or any
                           Subsequent  Remarketing  Date, as the case may be, of
                           either (a) U.S. Treasury securities that will pay, on
                           or prior to the  Stock  Purchase  Date,  an amount of
                           cash  equal to the  Stated  Amount of (x) such  Notes
                           which  are   included   in   Equity   Units  and  are
                           participating in the remarketing and (y) the Separate
                           Notes which are to be remarketed  pursuant to Section
                           4.5(d) of the Pledge Agreement and Section 1.6 of the
                           Supplemental  Indenture,  if the  remarketing  occurs
                           prior to the fourth  Business Day preceding the Stock
                           Purchase  Date, or (b) an amount of cash equal to the
                           Stated Amount of (x) such Notes which are included in
                           Equity Units and are participating in the remarketing
                           and (y) the Separate Notes which are to be remarketed
                           pursuant to Section  4.5(d) of the Pledge  Agreement,
                           if the  remarketing  occurs  on or after  the  fourth
                           Business Day preceding the Stock Purchase Date

                  provided  that for purposes of clauses (1) and (2) above,  the
                  Remarketing  Value shall be calculated on the assumptions that
                  (x) the U.S. Treasury  securities are highly liquid and mature
                  on or within  35 days  prior to the Stock  Purchase  Date,  as
                  determined in good faith by the

                                       9
<PAGE>

                  Remarketing  Agent in a manner  intended to minimize  the cash
                  value  of the  U.S.  Treasury  securities,  and (y)  the  U.S.
                  Treasury  securities are valued based on the ask-side price of
                  the U.S.  Treasury  securities at a time between 9:00 a.m. and
                  11:00 a.m.,  New York City time,  selected by the  Remarketing
                  Agent, on the Remarketing  Date or any Subsequent  Remarketing
                  Date,  as the  case  may  be,  as  determined  on a  third-day
                  settlement basis by reasonable and customary means selected in
                  good faith by the Remarketing  Agent, plus accrued interest to
                  that date.

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

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

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

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

         "Securities  Act" means the  Securities  Act of 1933,  and any  statute
successor thereto,  in each case as amended from time to time, and the rules and
regulations promulgated thereunder.

         "Securities  Intermediary"  means The Bank of New York, in its capacity
as  securities  intermediary  under  the  Pledge  Agreement,  together  with its
successors in such capacity.

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

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

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

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

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

         "Stock Purchase Date" means _______________.

                                       10
<PAGE>

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

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

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

         "Subsequent  Remarketing  Date" means,  provided  there has been one or
more  Failed  Remarketings,   the  date  on  which  the  Remarketing  Agent  has
consummated a remarketing in accordance  with Section 5.4 hereof and Section 1.6
of the  Indenture,  such  date  to be no  later  than  the  third  Business  Day
immediately preceding the Stock Purchase Date.

         "Supplemental  Indenture"  means a supplemental  indenture  dated as of
_____________,  between the Company and the Trustee to the indenture dated as of
May 1, 2001, between the Company and the Trustee.

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

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

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

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

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

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

                                       11
<PAGE>

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

                                    (b)  a  final   and   non-appealable   order
                           appointing   a   custodian,   receiver,   liquidator,
                           assignee,  trustee or other  similar  official of the
                           Company or of any substantial part of the property of
                           the Company ordering the winding up or liquidation of
                           the affairs of the Company; or

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

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

         "TIA" means the Trust Indenture Act of 1939, and any statute  successor
thereto,  in  each  case as  amended  from  time to  time,  and  the  rules  and
regulations promulgated thereunder.

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

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

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

         "Treasury  Portfolio" means: (i) if a Tax Event Redemption occurs prior
to a successful remarketing of the Notes or the Stock Purchase Date, a portfolio
of  zero-coupon  U.S.  Treasury  Securities  consisting of principal or interest
strips of U.S. Treasury Securities that mature on or prior to the Stock Purchase
Date in an aggregate amount equal to the aggregate principal amount of the Notes

                                       12
<PAGE>

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

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

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

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

         "Underwriting  Agreement" means the Underwriting  Agreement relating to
the Equity  Units dated  ____________  between the Company and the  underwriters
named therein.

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

         Section 1.2       COMPLIANCE CERTIFICATES AND OPINIONS.

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

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

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

                                       13
<PAGE>

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

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

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

         Section 1.3       FORM OF DOCUMENTS DELIVERED TO AGENT.

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

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

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

         Section 1.4       ACTS OF HOLDERS; RECORD DATES.

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

                                       14
<PAGE>

         (subject  to  Section  7.1)  conclusive  in favor of the  Agent and the
         Company, if made in the manner provided in this Section.

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

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

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

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

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

                                       15
<PAGE>

         Notwithstanding  the foregoing,  no Expiration Date shall be later than
         the 180th day after the applicable record date.

         Section 1.5       NOTICES.

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

                  (a)  the  Agent  by any  Holder  or by the  Company  shall  be
         sufficient  for  every  purpose   hereunder  (unless  otherwise  herein
         expressly  provided) if made, given,  furnished or filed in writing and
         personally delivered,  mailed, first-class postage prepaid,  telecopied
         or delivered by overnight air courier  guaranteeing  next day delivery,
         to the Agent at 101 Barclay Street, New York, New York 10286,  telecopy
         number: (212) 328-8243,  Attention:  Corporate Trust Department,  or at
         any other address  furnished in writing by the Agent to the Holders and
         the Company; or

                  (b)  the  Company  by the  Agent  or by any  Holder  shall  be
         sufficient  for  every  purpose   hereunder  (unless  otherwise  herein
         expressly  provided) if made, given,  furnished or filed in writing and
         personally delivered,  mailed, first-class postage prepaid,  telecopied
         or delivered by overnight air courier  guaranteeing  next day delivery,
         to the Company at American  Electric Power  Company,  Inc., 1 Riverside
         Plaza,   Columbus,   Ohio  43215,   telecopy  number:  (614)  223-1687,
         Attention:  General  Counsel,  or at any  other  address  furnished  in
         writing to the Agent and the Holders by the Company; or

                  (c) the  Collateral  Agent by the  Agent,  the  Company or any
         Holder  shall  be  sufficient  for  every  purpose   hereunder  (unless
         otherwise herein expressly provided) if made, given, furnished or filed
         in  writing  and  personally  delivered,  mailed,  first-class  postage
         prepaid,  telecopied or delivered by overnight air courier guaranteeing
         next day  delivery,  addressed to the  Collateral  Agent at 101 Barclay
         Street,  New York, New York 10286,  telecopy  number:  (212)  328-8243,
         Attention:   Corporate  Trust  Department,  or  at  any  other  address
         furnished in writing by the Collateral  Agent to the Agent, the Company
         and the Holders; or

                  (d) the Trustee by the Company shall be  sufficient  for every
         purpose hereunder (unless otherwise herein expressly provided) if made,
         given, furnished or filed in writing and personally delivered,  mailed,
         first-class  postage prepaid,  telecopied or delivered by overnight air
         courier guaranteeing next day delivery, addressed to the Trustee at The
         Bank of New  York,  101  Barclay  Street,  New  York,  New York  10286,
         telecopy number: (212) 328-8243, Attention: Corporate Trust Department,
         or at any other  address  furnished  in writing  by the  Trustee to the
         Company.

         Section 1.6       NOTICE TO HOLDERS; WAIVER.

                  (a) Where this Agreement provides for notice to Holders of any
         event, such notice shall be sufficiently given (unless otherwise herein
         expressly  provided)  if in writing  and  mailed,  first-class  postage
         prepaid,  to each Holder  affected by such event,  at its address as it
         appears in the applicable Register, not later than the latest date, and
         not earlier than the

                                       16
<PAGE>

         earliest date,  prescribed  for the giving of such notice.  In any case
         where  notice to Holders is given by mail,  neither the failure to mail
         such  notice nor any  defect in any notice so mailed to any  particular
         Holder  shall  affect the  sufficiency  of such notice with  respect to
         other Holders.  Where this Agreement provides for notice in any manner,
         such notice may be waived in writing by the Person  entitled to receive
         such notice, either before or after the event, and such waiver shall be
         the  equivalent  of such notice.  Waivers of notice by Holders shall be
         filed  with  the  Agent,  but  such  filing  shall  not be a  condition
         precedent  to the  validity of any action  taken in reliance  upon such
         waiver.

                  (b) In  case by  reason  of the  suspension  of  regular  mail
         service or by reason of any other  cause it shall be  impracticable  to
         give such notice by mail, then such  notification as shall be made with
         the approval of the Agent shall  constitute  a sufficient  notification
         for every purpose hereunder.

         Section 1.7       EFFECT OF HEADINGS AND TABLE OF CONTENTS.

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

         Section 1.8       SUCCESSORS AND ASSIGNS.

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

         Section 1.9       SEPARABILITY CLAUSE.

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

         Section 1.10      BENEFITS OF AGREEMENT.

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

         Section 1.11      GOVERNING LAW.

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

                                       17
<PAGE>

         Section 1.12      LEGAL HOLIDAYS.

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

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

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

         Section 1.13      COUNTERPARTS.

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

         Section 1.14      INSPECTION OF AGREEMENT.

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

                                  ARTICLE II.
                                CERTIFICATE FORMS

         Section 2.1       FORMS OF CERTIFICATES GENERALLY.

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

                                       18
<PAGE>

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

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

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

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

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

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

         Section 2.2       FORM OF AGENT'S CERTIFICATE OF AUTHENTICATION.

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

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

                                       19
<PAGE>

                                  ARTICLE III.
                                THE EQUITY UNITS

         Section 3.1       TITLE AND TERMS; DENOMINATIONS.

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

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

         Section 3.2       RIGHTS AND OBLIGATIONS EVIDENCED BY THE CERTIFICATES.

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

                  (b) Each Stripped Units  Certificate shall evidence the number
         of Stripped  Units  specified  therein,  with each such Stripped  Units
         Certificate  representing the ownership by the Holder thereof of a 1/20
         undivided  beneficial  interest in a Treasury Security,  subject to the
         Pledge  of such  interest  in such  Treasury  Security  by such  Holder
         pursuant to the Pledge Agreement, and the rights and obligations of the
         Holder thereof and the Company under one Forward Purchase Contract. The
         Agent as  attorney-in-fact  for,  and on behalf  of, the

                                       20
<PAGE>

         Holder of each  Stripped  Unit  shall  pledge,  pursuant  to the Pledge
         Agreement, the Treasury Security, forming a part of such Stripped Unit,
         to the Collateral  Agent and grant to the  Collateral  Agent a security
         interest  in the  right,  title  and  interest  of such  Holder in such
         Treasury  Security  for the  benefit  of the  Company,  to  secure  the
         obligation  of the  Holder  under each  Forward  Purchase  Contract  to
         purchase  shares of Common  Stock  pursuant to this  Agreement  and the
         related Forward Purchase  Contract.  Prior to the purchase of shares of
         Common  Stock  under  each  Forward  Purchase  Contract,  such  Forward
         Purchase  Contracts  shall not entitle  the  Holders of Stripped  Units
         Certificates  to any of the  rights  of a holder  of  shares  of Common
         Stock, including,  without limitation, the right to vote or receive any
         dividends  or other  payments  or to consent  or to  receive  notice as
         stockholders  in respect of the  meetings  of  stockholders  or for the
         election of  directors of the Company or for any other  matter,  or any
         other rights whatsoever as stockholders of the Company.

         Section 3.3       EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

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

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

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

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

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

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

                                       21
<PAGE>

         be conclusive  evidence,  and the only evidence,  that such Certificate
         has been duly authenticated and delivered hereunder.

         Section 3.4       TEMPORARY CERTIFICATES.

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

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

         Section 3.5       REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.

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

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

                                       22
<PAGE>

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

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

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

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

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

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

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

                           (iii) in the case of Stripped Units, if a Termination
                  Event shall have occurred  prior to the Stock  Purchase  Date,
                  transfer the  Treasury  Securities  relating to such  Stripped
                  Units,

                                       23
<PAGE>

in each case subject to the  applicable  conditions  and in accordance  with the
applicable provisions of Article V.

         Section 3.6       BOOK-ENTRY INTERESTS.

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

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

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

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

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

         Section 3.7       NOTICES TO HOLDERS.

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

         Section 3.8       APPOINTMENT OF SUCCESSOR CLEARING AGENCY.

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

                                       24
<PAGE>

         Section 3.9       DEFINITIVE CERTIFICATES.

         If

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

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

                           (iii) there shall have  occurred and be  continuing a
                  default by the Company in respect of its obligations under one
                  or  more  Forward  Purchase  Contracts,  this  Agreement,  the
                  Indenture,  the Notes,  the Equity Units, the Pledge Agreement
                  or any other principal  agreements or instruments  executed in
                  connection with the offering of Equity Units

then upon  surrender  of the Global  Certificates  representing  the  Book-Entry
Interests  with respect to the Equity  Units and Stripped  Units by the Clearing
Agency,  accompanied  by  registration  instructions,  the  Company  shall cause
definitive  Certificates  to be delivered  to Clearing  Agency  Participants  in
accordance  with the  instructions of the Clearing  Agency.  The Company and the
Agent shall not be liable for any delay in delivery of such instructions and may
conclusively rely on and shall be protected in relying on such instructions.

         Section 3.10      MUTILATED, DESTROYED, LOST AND STOLEN CERTIFICATES.

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

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

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

                                       25
<PAGE>

         deliver the shares of Common  Stock  issuable in respect of the Forward
         Purchase Contracts forming a part of the Equity Units or Stripped Units
         evidenced by such  Certificate,  or (ii) if a  Termination  Event shall
         have occurred prior to the Stock Purchase Date, transfer the Notes, the
         appropriate Treasury  Consideration or Applicable Ownership Interest in
         the Treasury Portfolio, or the Treasury Securities, as the case may be,
         evidenced  thereby,  in each case subject to the applicable  conditions
         and in accordance with the applicable provisions of Article V.

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

                  (e) Every new  Certificate  issued pursuant to this Section in
         lieu of any destroyed,  lost or stolen  Certificate shall constitute an
         original  contractual  obligation  of the  Company and of the Holder in
         respect  of the Equity  Units or  Stripped  Units,  as the case may be,
         evidenced  thereby,  whether  or not  the  destroyed,  lost  or  stolen
         Certificate (and the Equity Units and Stripped Units evidenced thereby)
         shall be at any time  enforceable  by anyone,  and shall be entitled to
         all  the  benefits  and be  subject  to all  the  obligations  of  this
         Agreement   equally  and   proportionately   with  any  and  all  other
         Certificates delivered hereunder.

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

         Section 3.11      PERSONS DEEMED OWNERS.

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

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

                                       26
<PAGE>

         account of beneficial  ownership  interests in a Global  Certificate or
         maintaining,  supervising  or  reviewing  any records  relating to such
         beneficial ownership interests.

         Section 3.12      CANCELLATION.

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

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

         Section 3.13      ESTABLISHMENT OF STRIPPED UNITS.

                  (a) Unless a successful  remarketing or a Tax Event Redemption
         has occurred,  a Holder may separate the Pledged Notes from the related
         Forward Purchase  Contracts in respect of the Equity Units held by such
         Holder by substituting for such Pledged Notes Treasury  Securities that
         will pay, on the Stock  Purchase Date, an amount equal to the aggregate
         principal  amount of such Notes (a "Collateral  Substitution"),  at any
         time from and after the date of this  Agreement  and on or prior to the
         tenth  Business Day  immediately  preceding the Stock Purchase Date, by
         (i) depositing with the Collateral Agent Treasury  Securities having an
         aggregate principal amount equal to the aggregate Stated Amount of such
         Equity Units,  and (ii)  transferring  the related  Equity Units to the
         Agent  accompanied by a notice to the Agent,  substantially in the form
         of  Exhibit D hereto,  stating  that the  Holder  has  transferred  the
         relevant  amount of Treasury  Securities  to the  Collateral  Agent and
         requesting that the Agent instruct the Collateral  Agent to release the
         Pledged Notes  underlying such Equity Units,  whereupon the Agent shall
         promptly give such instruction to the Collateral  Agent,  substantially
         in the form of  Exhibit  C hereto.  Notwithstanding  the  foregoing,  a
         Holder may not  separate  the Pledged  Notes from the  related  Forward
         Purchase  Contracts  in respect of the Equity Units held by such Holder
         during the periods  beginning  on the fourth  Business Day prior to any
         Remarketing  Period and ending on the third  Business Day after the end
         of such  Remarketing  Period.  Upon receipt of the Treasury  Securities
         described in clause (i) above and the  instruction  described in clause
         (ii) above, in accordance with the terms of the Pledge  Agreement,  the
         Collateral  Agent will  release to the

                                       27
<PAGE>

         Agent,  on behalf of the Holder,  such  Pledged  Notes from the Pledge,
         free and clear of the Company's  security  interest  therein,  and upon
         receipt thereof the Agent shall promptly:

                           (i) cancel the related Equity Units;

                           (ii) transfer the Pledged Notes to the Holder; and

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

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

                  (c)  Holders  may make  Collateral  Substitutions  if Treasury
         Securities are being  substituted  for Pledged Notes,  only in integral
         multiples of 20 Equity Units.

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

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

         Section 3.14      REESTABLISHMENT OF EQUITY UNITS.

                  (a) Unless a successful  remarketing or a Tax Event Redemption
         has occurred,  a Holder of Stripped Units may reestablish  Equity Units
         at any time from and after the date of this  Agreement  and on or prior
         to the tenth  Business Day  immediately  preceding  the Stock  Purchase
         Date,  by (i)  depositing  with the  Collateral  Agent the  Notes  then
         comprising  such  number of Equity  Units as is equal to such  Stripped
         Units  and  (ii)   transferring   such  Stripped  Units  to  the  Agent
         accompanied  by a notice  to the  Agent,  substantially  in the form

                                       28
<PAGE>

         of  Exhibit D hereto,  stating  that the  Holder  has  transferred  the
         relevant  amount of Notes to the Collateral  Agent and requesting  that
         the Agent instruct the Collateral Agent to release the Pledged Treasury
         Securities  underlying such Stripped  Units,  whereupon the Agent shall
         promptly give such instruction to the Collateral  Agent,  substantially
         in the form of  Exhibit  C hereto.  Notwithstanding  the  foregoing,  a
         Holder may not reestablish Equity Units during the periods beginning on
         the fourth Business Day prior to any  Remarketing  Period and ending on
         the third Business Day after the end of such Remarketing  Period.  Upon
         receipt of the Notes  described in clause (i) above and the instruction
         described  in clause (ii) above,  in  accordance  with the terms of the
         Pledge  Agreement,  the Collateral  Agent will release to the Agent, on
         behalf of the Holder, such Pledged Treasury Securities from the Pledge,
         free and clear of the Company's  security  interest  therein,  and upon
         receipt thereof the Agent shall promptly:

                           (i) cancel the related Stripped Units;

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

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

                  (b) Holders of Stripped  Units may  reestablish  Equity  Units
         only in integral multiples of 20 Stripped Units for 20 Equity Units.

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

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

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

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<PAGE>

         Section 3.15      TRANSFER OF COLLATERAL UPON OCCURRENCE OF TERMINATION
                           EVENT.

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

         Section 3.16      NO CONSENT TO ASSUMPTION.

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

                                   ARTICLE IV.
                                    THE NOTES

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

                  (a)  A  payment  on  any  Note,   Treasury   Consideration  or
         Applicable  Ownership Interest in the Treasury  Portfolio,  as the case
         may be,  which is paid on any  Payment  Date other than a Payment  Date
         with  respect to the Stated  Amount due on  Treasury  Consideration  or
         Applicable  Ownership Interest in the Treasury Portfolio shall, subject
         to  receipt  thereof  by the Agent  from the  Collateral  Agent (if the
         Collateral  Agent is the

                                       30
<PAGE>

         registered  owner  thereof)  as  provided  by the  terms of the  Pledge
         Agreement,  be paid to the  Person  in  whose  name  the  Equity  Units
         Certificate (or one or more Predecessor  Equity Units  Certificates) of
         which such Note or the appropriate Treasury Consideration or Applicable
         Ownership Interest in the Treasury Portfolio,  as the case may be, is a
         part is registered at the close of business on the Record Date for such
         Payment Date.

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

                  (c) In the case of any  Equity  Units  with  respect  to which
         Early  Settlement  of  the  underlying  Forward  Purchase  Contract  is
         effected on an Early  Settlement  Date,  Merger Early Settlement of the
         underlying  Forward  Purchase  Contract is  effected on a Merger  Early
         Settlement  Date, Cash  Settlement is effected on the seventh  Business
         Day  immediately  preceding  the Stock  Purchase  Date, or a Collateral
         Substitution  is  effected,  in each  case on a date  that is after any
         Record  Date  and on or  prior to the  next  succeeding  Payment  Date,
         payments  on the  Note or the  appropriate  Treasury  Consideration  or
         Applicable  Ownership Interest in the Treasury  Portfolio,  as the case
         may be,  underlying such Equity Units otherwise payable on such Payment
         Date shall be payable on such Payment Date  notwithstanding  such Early
         Settlement,  Merger Early  Settlement,  Cash  Settlement  or Collateral
         Substitution,  as the case may be, and such payments shall,  subject to
         receipt  thereof by the  Agent,  be payable to the Person in whose name
         the Equity Units  Certificate (or one or more Predecessor  Equity Units
         Certificates)  was  registered  at the close of  business on the Record
         Date.  Except  as  otherwise  expressly  provided  in  the  immediately
         preceding  sentence,  in the case of any Equity  Units with  respect to
         which Early  Settlement,  Merger Early Settlement or Cash Settlement of
         the underlying  Forward Purchase Contract is effected,  or with respect
         to which a Collateral  Substitution has been effected,  payments on the
         related Notes or payments on the appropriate Treasury  Consideration or
         Applicable  Ownership Interest in the Treasury  Portfolio,  as the case
         may be, that would otherwise be payable after the applicable Settlement
         Date or after such Collateral  Substitution,  as the case may be, shall
         not be payable hereunder to the Holder of such Equity Units;  provided,
         that to the extent  that such  Holder  continues  to hold the  Separate
         Notes that  formerly  comprised a part of such  Holder's  Equity Units,
         such Holder shall be entitled to receive the payments on such  Separate
         Notes.

         Section 4.2       NOTICE AND VOTING.

         Under the terms of the Pledge Agreement,  the Agent will be entitled to
exercise the voting and any other  consensual  rights  pertaining to the Pledged
Notes but only to the extent  instructed by the Holders as described below. Upon
receipt of notice of any meeting at which  holders of Notes are entitled to vote
or upon any  solicitation  of consents,  waivers or proxies of holders of Notes,
the Agent  shall,  as soon as  practicable  thereafter,  mail to the  Holders of
Equity Units a notice (a)  containing  such  information  as is contained in the
notice or  solicitation,  (b) stating that each Holder on the record date set by
the Agent therefor (which, to the extent possible, shall be the same date as the
record  date for  determining  the  holders of Notes  entitled to vote) shall be
entitled  to

                                       31
<PAGE>

instruct the Agent as to the  exercise of the voting  rights  pertaining  to the
Pledged Notes  underlying their Equity Units and (c) stating the manner in which
such  instructions  may be given.  Upon the  written  request of the  Holders of
Equity  Units  on  such  record  date,  the  Agent  shall  endeavor  insofar  as
practicable to vote or cause to be voted,  in accordance  with the  instructions
set forth in such requests,  the maximum number of Pledged Notes as to which any
particular  voting  instructions  are  received.  In  the  absence  of  specific
instructions  from the Holder of an Equity  Unit,  the Agent shall  abstain from
voting the Pledged Note underlying such Equity Units. The Company hereby agrees,
if applicable,  to solicit  Holders of Equity Units to timely instruct the Agent
in order to enable the Agent to vote such Pledged Notes.

         Section 4.3       TAX EVENT REDEMPTION.

         Upon the occurrence of a Tax Event Redemption prior to the earlier of a
successful  remarketing of the Notes or the Stock Purchase Date, the Company may
elect to  instruct  in  writing  the  Collateral  Agent to apply,  and upon such
written  instruction,  the  Collateral  Agent shall apply,  out of the aggregate
Redemption  Price for the Notes that are  components of Equity Units,  an amount
equal to the aggregate  Redemption  Amount for the Notes that are  components of
Equity  Units to purchase on behalf of the Holders of Equity  Units the Treasury
Portfolio and promptly remit the remaining portion of such aggregate  Redemption
Price to the Agent for payment to the Holders of such Equity Units. The Treasury
Portfolio will be substituted for the Pledged Notes,  and will be pledged to the
Collateral  Agent in accordance with the terms of the Pledge Agreement to secure
the  obligation  of each Holder of an Equity  Units to purchase the Common Stock
under the Forward  Purchase  Contract  constituting a part of such Equity Units.
Following  the  occurrence of a Tax Event  Redemption  prior to the earlier of a
successful  remarketing  of the Notes or the Stock Purchase Date, the Holders of
Equity Units and the Collateral Agent shall have such security interests, rights
and obligations  with respect to the Treasury  Portfolio as the Holder of Equity
Units and the Collateral  Agent had in respect of the Notes, as the case may be,
subject to the Pledge  thereof as provided in Articles  II, III, IV, V and VI of
the Pledge  Agreement,  and any reference  herein or in the  Certificates to the
Note  shall be deemed  to be a  reference  to such  Treasury  Portfolio  and any
reference herein or in the Certificates to interest on the Notes shall be deemed
to be a reference to corresponding  distributions on the Treasury Portfolio. The
Company may cause to be made in any Equity Units  Certificates  thereafter to be
issued  such change in  phraseology  and form (but not in  substance)  as may be
appropriate to reflect the  substitution of the Treasury  Portfolio for Notes as
collateral.

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

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

                                   ARTICLE V.
                 THE FORWARD PURCHASE CONTRACTS; THE REMARKETING

         Section 5.1       PURCHASE OF SHARES OF COMMON STOCK.

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<PAGE>

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

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

                           (ii) if the Applicable  Market Value is less than the
                  Threshold  Appreciation Price, but is greater than $_____, the
                  number of shares of Common Stock per Forward Purchase Contract
                  equal to $____ divided by the Applicable Market Value, and

                           (iii) if the  Applicable  Market Value is equal to or
                  less than  $_____,  ______  shares of Common Stock per Forward
                  Purchase Contract,

in each case subject to  adjustment  as provided in Section 5.6 and in each case
rounded upward or downward to the nearest 1/10,000th of a share.

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

         Promptly  after  the   calculation  of  the  Settlement  Rate  and  the
Applicable  Market Value,  the Company shall give the Agent notice thereof.  All
calculations and determinations of the Settlement Rate and the Applicable Market
Value  shall be made by the  Company  or its  agents  based on their  good faith
calculations, and the Agent shall have no responsibility with respect thereto.

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

                                       33
<PAGE>

         suspended from trading on any national or regional  securities exchange
         or association or over-the-counter  market at the close of business and
         (B) has traded at least once on the  national  or  regional  securities
         exchange or association or over-the-counter  market that is the primary
         market for the trading of the Common Stock.

                  (c) Each Holder of Equity Units or Stripped Units, as the case
         may be, by its acceptance thereof,  irrevocably authorizes the Agent to
         enter into and  perform the related  Forward  Purchase  Contract on its
         behalf as its attorney-in-fact (including the execution of Certificates
         on  behalf  of such  Holder),  agrees  to be  bound  by the  terms  and
         provisions  thereof,  covenants  and agrees to perform its  obligations
         under such Forward Purchase  Contracts,  and consents to the provisions
         hereof,  irrevocably  authorizes the Agent as its  attorney-in-fact  to
         enter  into and  perform  the  Pledge  Agreement  on its  behalf as its
         attorney-in-fact,  and consents to and agrees to be bound by the Pledge
         of the Notes,  the  appropriate  Treasury  Consideration  or Applicable
         Ownership  Interest  in  the  Treasury   Portfolio,   or  the  Treasury
         Securities  pursuant  to the  Pledge  Agreement;  provided  that upon a
         Termination  Event,  the rights of the Holder of such  Equity  Units or
         Stripped Units, as the case may be, under the Forward Purchase Contract
         may be enforced without regard to any other rights or obligations. Each
         Holder of Equity  Units or Stripped  Units,  as the case may be, by its
         acceptance  thereof,  further  covenants and agrees that, to the extent
         and in the manner provided in Section 5.4 and the Pledge Agreement, but
         subject to the terms  thereof,  payments  in respect of the Notes,  the
         appropriate Treasury  Consideration or Applicable Ownership Interest in
         the Treasury  Portfolio,  or the Treasury  Securities,  to be paid upon
         settlement of such Holder's  obligations to purchase Common Stock under
         the Forward Purchase Contract, shall be paid on the Stock Purchase Date
         by the Collateral Agent to the Company in satisfaction of such Holder's
         obligations  under such Forward Purchase Contract and such Holder shall
         acquire no right, title or interest in such payment.

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

         Section 5.2       CONTRACT ADJUSTMENT PAYMENTS.

                  (a) Contract  Adjustment Payments shall accrue on each Forward
         Purchase  Contract  constituting  a part of an Equity  Unit or Stripped
         Unit at ____%  per year of the  Stated  Amount of such  Equity  Unit or
         Stripped  Unit,  from June 11,  2002  through and  including  the Stock
         Purchase  Date,  provided  that no Contract  Adjustment  Payment  shall
         accrue after an Early Settlement or Merger Early Settlement. Subject to
         Section 5.3 herein,  the Company shall pay, on each Payment  Date,  the
         Contract  Adjustment  Payments,  if any,  payable  in  respect  of each
         Forward Purchase Contract to the Person in whose name a Certificate (or
         one or more  Predecessor  Certificates)  is  registered at the close of
         business on the Record Date immediately  preceding such Payment Date in
         such coin or  currency  of

                                       34
<PAGE>

         the United  States as at the time of payment  shall be legal tender for
         payments.  The Contract Adjustment Payments, if any, will be payable at
         the office in New York,  New York,  maintained  for that purpose or, at
         the option of the Company, by check mailed to the address of the Person
         entitled thereto at such Person's address as it appears on the Register
         or by wire  transfer to the account  designated to the Agent by a prior
         written  notice by such Person  delivered at least five  Business  Days
         prior to the applicable Payment Date.

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

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

                  (d)  Subject  to  Sections  5.9 and  5.10,  in the case of any
         Equity  Units or Stripped  Units,  as the case may be, with  respect to
         which Early  Settlement or Merger Early  Settlement  of the  underlying
         Forward Purchase  Contract is effected on an Early Settlement Date or a
         Merger Early Settlement Date, respectively, or in respect of which Cash
         Settlement of the underlying  Forward Purchase  Contract is effected on
         the seventh Business Day immediately preceding the Stock Purchase Date,
         or with respect to which a Collateral  Substitution or an establishment
         or  re-establishment  of an Equity  Units  pursuant to Section  3.14 is
         effected,  in each case on a date that is after any Record  Date and on
         or prior to the  next  succeeding  Payment  Date,  Contract  Adjustment
         Payments on the Forward Purchase Contract  underlying such Equity Units
         or  Stripped  Units,  as the case  may be,  otherwise  payable  on such
         Payment Date shall be payable on such Payment Date notwithstanding such
         Cash Settlement, Early Settlement, Merger Early Settlement,  Collateral
         Substitution or establishment or  re-establishment of Equity Units, and
         such Contract  Adjustment Payments shall be paid to the Person in whose
         name the Certificate evidencing such Equity Units or Stripped Units (or
         one or more  Predecessor  Certificates)  is  registered at the close of
         business on such Record Date. Except as otherwise expressly provided in
         the immediately  preceding sentence, in the case of any Equity Units or
         Stripped Units with respect to which Cash Settlement, Early Settlement,
         Merger Early Settlement of the underlying  Forward Purchase Contract is
         effected on the seventh  Business Day  immediately  preceding the Stock
         Purchase  Date,  an Early  Settlement  Date or Merger Early  Settlement
         Date,  as the  case  may be,  or with  respect  to  which a  Collateral
         Substitution or an establishment or  re-establishment of an Equity Unit
         has been effected,  Contract  Adjustment  Payments,  if any, that would
         otherwise be payable after the Early  Settlement  Date, or Merger Early
         Settlement  Date,  Collateral  Substitution  or such  establishment  or
         re-establishment  with respect to such Forward Purchase  Contract shall
         not be payable.

                                       35
<PAGE>

         Section 5.3       DEFERRAL OF CONTRACT ADJUSTMENT PAYMENTS.

                  (a) The Company shall have the right, at any time prior to the
         Stock Purchase Date, to defer the payment of any or all of the Contract
         Adjustment  Payments otherwise payable on any Payment Date, but only if
         the Company shall give the Holders and the Agent written  notice of its
         election  to defer  each  such  deferred  Contract  Adjustment  Payment
         (specifying the amount to be deferred) at least ten Business Days prior
         to the earlier of (i) the next succeeding Payment Date or (ii) the date
         the  Company is  required  to give notice of the Record Date or Payment
         Date with respect to payment of such  Contract  Adjustment  Payments to
         the NYSE or other applicable self-regulatory organization or to Holders
         of the Equity Units and Stripped Units,  but in any event not less than
         one  Business Day prior to such Record  Date.  Any Contract  Adjustment
         Payments  so  deferred  shall,  to the extent  permitted  by law,  bear
         additional  Contract  Adjustment  Payments thereon at the rate of 5.75%
         per year  (computed  on the  basis of a 360-day  year of twelve  30-day
         months),  compounding on each  succeeding  Payment Date,  until paid in
         full (such deferred  installments of Contract Adjustment  Payments,  if
         any, together with the additional  Contract Adjustment Payments accrued
         thereon,  being referred to herein as the "Deferred Contract Adjustment
         Payments"). Deferred Contract Adjustment Payments, if any, shall be due
         on the next  succeeding  Payment Date except to the extent that payment
         is deferred  pursuant  to this  Section  5.3.  No  Contract  Adjustment
         Payments  may be  deferred  to a date that is after the Stock  Purchase
         Date and no such deferral  period may end other than on a Payment Date.
         If the Forward Purchase Contracts are terminated upon the occurrence of
         a Termination Event, the Holder's right to receive Contract  Adjustment
         Payments,  if any,  and Deferred  Contract  Adjustment  Payments,  will
         terminate.  If Deferred Contract Adjustment Payments are deferred until
         the Stock Purchase Date, all payments in respect  thereof shall be made
         in cash on the Stock Purchase Date.

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

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

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

                           (ii)  as  a  result  of  a  reclassification  of  the
                  Company's  Capital  Stock or the exchange or conversion of one
                  class or series of the  Company's  Capital  Stock for  another
                  class or series of the Company's Capital Stock;

                                       36
<PAGE>

                           (iii) the  purchase of  fractional  interests  of the
                  Common Stock pursuant to the conversion or exchange provisions
                  of such  Common  Stock  or the  security  being  converted  or
                  exchanged;

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

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

         Section 5.4       PAYMENT OF PURCHASE PRICE; REMARKETING.

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

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

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

                  (b) The Company has engaged the Remarketing  Agent to sell the
         Notes of (A)  Holders of Equity  Units,  other than  Holders  that have
         elected  not  to  participate  in  the

                                       37
<PAGE>

         remarketing  pursuant to the  procedures  set forth in  subsection  (g)
         below,  and  (B)  holders  of  Separate  Notes  that  have  elected  to
         participate in the remarketing  pursuant to the procedures set forth in
         Section  4.5(d) of the Pledge  Agreement.  On the seventh  Business Day
         prior to the  Remarketing  Date, the Agent shall give Holders of Equity
         Units and holders of Separate Notes notice of the remarketing (the form
         of which notice to be provided by the Company) in a daily  newspaper in
         the English  language of general  circulation  in The City of New York,
         which is expected to be The Wall Street Journal, including the specific
         U.S. Treasury security or securities (including the CUSIP number and/or
         the principal terms of such Treasury security or securities)  described
         in  subsection  (g) below,  that must be delivered by Holders of Equity
         Units that elect not to  participate  in the  remarketing  pursuant  to
         subsection (g) below,  no later than 10:00 a.m., New York City time, on
         the fourth Business Day preceding the Remarketing Date or the first day
         of any Subsequent  Remarketing  Period, as applicable.  The Agent shall
         notify,  by 10:00 a.m.,  New York City time, on the third  Business Day
         preceding  the  Remarketing  Date or the  first  day of any  subsequent
         Remarketing  Period,  as  applicable,  the  Remarketing  Agent  and the
         Collateral  Agent of the  aggregate  number  of Notes of  Equity  Units
         Holders  to be  remarketed.  On  the  third  Business  Day  immediately
         preceding  the  Remarketing  Date or the  first  day of any  subsequent
         Remarketing Period, as applicable, no later than by 10:00 a.m. New York
         City time, pursuant to the terms of the Pledge Agreement, the Custodial
         Agent will  notify the  Remarketing  Agent of the  aggregate  number of
         Separate Notes to be remarketed.  On the third Business Day immediately
         preceding  the  Remarketing  Date or the  first  day of any  subsequent
         Remarketing  Period,  as  applicable,  the  Collateral  Agent  and  the
         Custodial Agent,  pursuant to the terms of the Pledge  Agreement,  will
         deliver  for  remarketing  to the  Remarketing  Agent  all  Notes to be
         remarketed.

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

                  (d) If the remarketing occurs prior to the fourth Business Day
         preceding the Stock Purchase Date, the  Remarketing  Agent will use the
         proceeds from a successful remarketing to purchase the appropriate U.S.
         Treasury securities (the "Agent-purchased Treasury Consideration") with
         the CUSIP numbers, if any, selected by the Remarketing Agent, described
         in clauses (1) and (2) of the definition of  Remarketing  Value related
         to the Notes of Holders of Equity Units or that were remarketed.  On or
         prior to the third Business Day following the  Remarketing  Date or any
         Subsequent  Remarketing  Date the Remarketing  Agent shall deliver such
         Agent-purchased  Treasury  Consideration  to  the  Agent,  which  shall
         thereupon deliver such  Agent-purchased  Treasury  Consideration to the
         Collateral Agent. The Collateral Agent, for the benefit of the Company,
         will thereupon apply such Agent-purchased  Treasury  Consideration,  in
         accordance  with  the  Pledge   Agreement,   to  secure  such  Holders'
         obligations  under the Forward Purchase  Contracts.  If the remarketing

                                       38
<PAGE>

         occurs on or after the fourth Business Day preceding the Stock Purchase
         Date, the proceeds of the remarketing  will not be used to purchase the
         Agent-purchased Treasury Consideration,  but such proceeds will be paid
         to the Agent in direct  settlement  of the  obligations  of the Holders
         under the related Forward  Purchase  Contracts to purchase Common Stock
         of the Company.  The Remarketing Agent will deduct as a remarketing fee
         an amount not exceeding ___ basis points  (____%) of the total proceeds
         from the remarketing (the  "Remarketing  Fee").  The Remarketing  Agent
         will  remit  (1)  the  remaining  portion  of  the  proceeds  from  the
         remarketing  attributable  to the Separate Notes to the Custodial Agent
         for the benefit of the holders of Separate  Notes that were  remarketed
         and (2) the remaining portion of the proceeds, less those proceeds used
         to purchase the  Agent-purchased  Treasury  Consideration or to pay the
         Company in direct  settlement  of the  Holders'  obligations  under the
         Forward Purchase Contracts,  to the Agent for payment to the Holders of
         the Equity Units that were  remarketed,  all  determined  on a pro rata
         basis,  in each case,  on or prior to the third  Business Day following
         such Remarketing  Date or Subsequent  Remarketing  Date.  Holders whose
         Notes are so  remarketed  will not  otherwise  be  responsible  for the
         payment of any Remarketing Fee in connection therewith.

                  (e) (i) If, in spite of using its commercially reasonable best
         efforts,  the  Remarketing  Agent cannot  establish  the Reset Rate and
         remarket  the Notes  included  in the  remarketing  at a price equal to
         approximately, but not less than, ______% of the Remarketing Value, the
         Remarketing  Agent will again  attempt to establish  the Reset Rate and
         remarket  the Notes  included  in the  remarketing  at a price equal to
         approximately,  but not less than,  ______% of the Remarketing Value on
         each of the two immediately following Business Days. If the Remarketing
         Agent cannot  remarket the Notes included in the remarketing at a price
         equal to approximately,  but not less than,  ______% of the Remarketing
         Value on either of those days,  it will attempt to establish  the Reset
         Rate and  remarket  the Notes  included in the  remarketing  at a price
         equal to approximately,  but not less than,  ______% of the Remarketing
         Value  on  each  of  the  three  Business  Days  immediately  preceding
         _____________.  If the  Remarketing  Agent  cannot  remarket  the Notes
         included in the remarketing at a price equal to approximately,  but not
         less than,  ______% of the  Remarketing  Value on any of those days, it
         will  attempt  to  establish  the  Reset  Rate and  remarket  the Notes
         included in the remarketing at a price equal to approximately,  but not
         less  than,  ______%  of the  Remarketing  Value  on each of the  three
         Business Days immediately preceding  _____________.  If the Remarketing
         Agent cannot  establish the Reset Rate and remarket the Notes  included
         in the  remarketing  at a price  equal to  approximately,  but not less
         than,  ______%  of the  Remarketing  Value  either  on  any of the  two
         Business Days  immediately  following the Remarketing Date or on any of
         the three Business Days immediately  preceding  _____________ or on any
         of the three Business Days  immediately  preceding  _____________,  the
         remarketing  in each  period  will be deemed to have  failed  (each,  a
         "Failed  Remarketing").  If the Remarketing  Agent cannot establish the
         Reset Rate and  remarket  the Notes  included in the  remarketing  at a
         price  equal  to  approximately,  but not  less  than,  ______%  of the
         Remarketing  Value  on any  of  the  three  Business  Days  immediately
         preceding _____________,  the Remarketing Agent will further attempt to
         establish  the  Reset  Rate and  remarket  the  Notes  included  in the
         remarketing  at a price  equal to  approximately,  but not  less  than,
         ______% of the  Remarketing  Value on each of the three  Business  Days
         immediately  preceding  _______________.  If,  in spite  of  using  its
         commercially  reasonable best efforts,  the

                                       39
<PAGE>

         Remarketing  Agent fails to remarket  the Notes  underlying  the Equity
         Units at a price equal to approximately,  but not less than, ______% of
         the  Remarketing  Value  in  accordance  with the  terms of the  Pledge
         Agreement by 4:00 p.m.,  New York City time, on the third  Business Day
         immediately   preceding  the  Stock   Purchase  Date,  a  "Last  Failed
         Remarketing" will be deemed to have occurred.

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

                  (f) With respect to any Notes which  constitute part of Equity
         Units which are subject to the Last Failed Remarketing,  the Collateral
         Agent for the  benefit of the Company  reserves  all of its rights as a
         secured party with respect  thereto and,  subject to applicable law and
         Section 5.4 (j) below,  may, among other things,  permit the Company to
         cause the Notes to be sold or to  retain  and  cancel  such  Notes,  in
         either case, in full satisfaction of the Holders' obligations under the
         Forward  Purchase  Contracts  and the Holders of the Equity  Units,  by
         their  acceptance of the Equity Units shall be deemed to have agreed to
         such action by the Collateral Agent.

                  (g) A Holder of Equity Units may elect not to  participate  in
         the  remarketing  and retain the Notes  underlying such Equity Units by
         notifying the Agent of such election and  delivering  the specific U.S.
         Treasury security or securities  (including the CUSIP number and/or the
         principal terms of such security or securities) identified by the Agent
         that constitute the U.S. Treasury  securities  described in clauses (1)
         and (2) of the definition of Remarketing Value relating to the retained
         Notes (as if only such  Notes  were  being  remarketed)  (the  "Opt-out
         Treasury  Consideration") to the Agent not later than 10:00 a.m. on the
         fourth Business Day prior to the Remarketing Date (or, in the case of a
         Failed  Remarketing,  not later than 10:00 a.m. on the fourth  Business
         Day  immediately  prior to the

                                       40
<PAGE>

         subsequent  Remarketing Period). Upon receipt thereof by the Agent, the
         Agent  shall  deliver  such  Opt-out  Treasury   Consideration  to  the
         Collateral Agent, which will, for the benefit of the Company, thereupon
         apply such  Opt-out  Treasury  Consideration  to secure  such  Holder's
         obligations under the Forward Purchase Contracts. On the first Business
         Day immediately  preceding the  Remarketing  Date (or, in the case of a
         Failed Remarketing,  the subsequent Remarketing Period), the Collateral
         Agent, pursuant to the terms of the Pledge Agreement,  will deliver the
         Pledged Notes of such Holder to the Agent.  Within three  Business Days
         following  any   Remarketing   Period,   (A)  if  the  remarketing  was
         successful,  the Agent shall  distribute  such Notes to the new holders
         thereof,  and (B) if there was a Failed  Remarketing,  the  Agent  will
         deliver such Notes to the Collateral Agent, which will, for the benefit
         of the  Company,  thereupon  apply such Notes to secure  such  Holders'
         obligations under the Forward Purchase Contracts and return the Opt-out
         Treasury  Consideration  delivered by such Holders to such  Holders.  A
         Holder  that does not so deliver  the  Opt-out  Treasury  Consideration
         pursuant  to this  clause  (g)  shall  be  deemed  to have  elected  to
         participate in the remarketing.

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

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

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

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

                                       41
<PAGE>

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

         Section 5.5       ISSUANCE OF SHARES OF COMMON STOCK.

         Unless a Termination Event shall have occurred on or prior to the Stock
Purchase  Date or an Early  Settlement or a Merger Early  Settlement  shall have
occurred with respect to all of the  outstanding  Units,  on the Stock  Purchase
Date,  upon its receipt of payment for the shares of Common  Stock  purchased by
the Holders  pursuant to the  provisions  of this Article and subject to Section
5.4, the Company shall issue and deposit with the Agent,  for the benefit of the
Holders  of the  Outstanding  Units,  one or  more  certificates  or  book-entry
interests representing the newly issued shares of Common Stock registered in the
name  of the  Agent  (or  its  nominee)  as  custodian  for  the  Holders  (such
certificates or book-entry  interests for shares of Common Stock,  together with
any dividends or distributions for which a record date and payment date for such
dividend or  distribution  has occurred  after the Stock  Purchase  Date,  being
hereinafter  referred to as the "Forward Purchase Contract  Settlement Fund") to
which the  Holders  are  entitled  hereunder.  Subject  to the  foregoing,  upon
surrender of a  Certificate  to the Agent on or after the Stock  Purchase  Date,
together with settlement  instructions thereon duly completed and executed,  the
Holder of such Certificate  shall be entitled to receive in exchange  therefor a
certificate or book-entry  interest  representing that number of whole shares of
Common Stock which such Holder is entitled to receive pursuant to the provisions
of this Article V (after taking into account all Equity Units and Stripped Units
then held by such Holder)  together  with cash in lieu of  fractional  shares as
provided in Section 5.12 and any dividends or distributions with respect to such
shares  constituting part of the Forward Purchase Contract  Settlement Fund, but
without any interest thereon, and the Certificate so surrendered shall forthwith
be  cancelled.  Such shares shall be registered in the name of the Holder or the
Holder's  designee as specified in the settlement  instructions  provided by the
Holder to the  Agent.  If any  shares of Common  Stock  issued in  respect  of a
Forward Purchase Contract are to be registered to a Person other than the Person
in whose name the  Certificate  evidencing  such  Forward  Purchase  Contract is
registered, no such registration shall be made unless the Person requesting such
registration  has paid any transfer  and other taxes  required by reason of such
registration  in a name  other  than  that  of the  registered  Holder  of  such
Certificate or has established to the  satisfaction of the Company that such tax
either has been paid or is not payable.

         Section 5.6       ADJUSTMENT OF SETTLEMENT RATE.

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

                           (1) STOCK DIVIDENDS. In case the Company shall pay or
                  make a dividend or other  distribution  on the Common Stock in
                  Common Stock, the Settlement Rate or Early Settlement Rate, as
                  applicable, as in effect at the opening of business on the day
                  following the date

                                       42
<PAGE>

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

                           (2) STOCK PURCHASE RIGHTS.  In case the Company shall
                  issue rights, options or warrants to all holders of its Common
                  Stock (not being  available on an equivalent  basis to Holders
                  of the Equity Units and Stripped Units upon  settlement of the
                  Forward  Purchase  Contracts  underlying such Equity Units and
                  Stripped  Units)  entitling  them to subscribe for or purchase
                  shares  of Common  Stock at a price  per  share  less than the
                  Current Market Price per share of the Common Stock on the date
                  fixed  for  the  determination  of  stockholders  entitled  to
                  receive such rights,  options or warrants (other than pursuant
                  to a dividend  reinvestment,  share purchase or similar plan),
                  the Settlement Rate or Early  Settlement  Rate, as applicable,
                  in effect at the opening of business on the day  following the
                  date  fixed  for  such  determination  shall be  increased  by
                  dividing such  Settlement  Rate or Early  Settlement  Rate, as
                  applicable, by a fraction, the numerator of which shall be the
                  number of shares of Common Stock  outstanding  at the close of
                  business  on the date  fixed for such  determination  plus the
                  number of shares of Common  Stock which the  aggregate  of the
                  offering  price of the total  number of shares of Common Stock
                  so offered for subscription or purchase would purchase at such
                  Current Market Price and the denominator of which shall be the
                  number of shares of Common Stock  outstanding  at the close of
                  business  on the date  fixed for such  determination  plus the
                  number of shares of Common  Stock so offered for  subscription
                  or purchase,  such  increase to become  effective  immediately
                  after the opening of business  on the day  following  the date
                  fixed  for  such  determination.  For  the  purposes  of  this
                  paragraph  (2),  the  number of shares of Common  Stock at any
                  time outstanding shall not include shares held in the treasury
                  of the  Company  but shall  include  any  shares  issuable  in
                  respect of any scrip certificates  issued in lieu of fractions
                  of shares of Common  Stock.  The  Company  shall not issue any
                  such  rights,  options  or  warrants  in  respect of shares of
                  Common Stock held in the treasury of the Company.

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

                                       43
<PAGE>

                  Common Stock shall be combined into a smaller number of shares
                  of Common Stock, the Settlement Rate or Early Settlement Rate,
                  as applicable, in effect at the opening of business on the day
                  following  the  day  upon  which  such   combination   becomes
                  effective shall be proportionately  reduced,  such increase or
                  reduction, as the case may be, to become effective immediately
                  after the  opening of business  on the day  following  the day
                  upon  which such  subdivision,  split or  combination  becomes
                  effective.

                           (4)  DEBT OR  ASSET  DISTRIBUTIONS.  (i) In case  the
                  Company  shall,  by dividend or  otherwise,  distribute to all
                  holders of its Common Stock  evidences of its  indebtedness or
                  assets  (including  securities,  but  excluding  any rights or
                  warrants  referred to in paragraph  (2) of this  Section,  any
                  dividend  or  distribution  paid  exclusively  in cash and any
                  dividend,  shares of capital stock of any class or series,  or
                  similar  equity  interests,  of or relating to a subsidiary or
                  other  business unit in the case of a Spin-Off  referred to in
                  the next paragraph,  or distribution  referred to in paragraph
                  (1) of this Section),  the Settlement Rate or Early Settlement
                  Rate, as applicable,  shall be adjusted so that the same shall
                  equal the rate  determined by dividing the Settlement  Rate or
                  Early  Settlement Rate, as applicable,  in effect  immediately
                  prior to the  close of  business  on the  date  fixed  for the
                  determination   of  stockholders   entitled  to  receive  such
                  distribution  by a fraction,  the  numerator of which shall be
                  the Current  Market Price per share of the Common Stock on the
                  date fixed for such  determination  less the then fair  market
                  value  (as  determined  by  the  Board  of  Directors,   whose
                  determination  shall be  conclusive  and  described in a Board
                  Resolution)  of the  portion  of the  assets or  evidences  of
                  indebtedness so distributed  applicable to one share of Common
                  Stock  and the  denominator  of which  shall  be such  Current
                  Market Price per share of the Common Stock, such adjustment to
                  become effective  immediately prior to the opening of business
                  on the day following the date fixed for the  determination  of
                  stockholders  entitled to receive  such  distribution.  In any
                  case in which this paragraph (4) is applicable,  paragraph (2)
                  of this Section shall not be applicable.

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

                                       44
<PAGE>

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

                           (6) TENDER  OFFERS.  In case (i) a tender or exchange
                  offer made by the Company or any subsidiary of the Company for
                  all or any portion of the Common  Stock shall  expire and such
                  tender or  exchange  offer  (as  amended  upon the  expiration
                  thereof) shall require the payment to  stockholders  (based on
                  the  acceptance  (up to any maximum  specified in the terms of
                  the  tender or  exchange  offer) of  Purchased  Shares)  of an
                  aggregate   consideration  having  a  fair  market  value  (as
                  determined  by the  Board of  Directors,  whose  determination
                  shall be conclusive and described in a Board  Resolution) that
                  combined together with (ii) the aggregate of the cash plus the
                  fair market value (as  determined  by the Board of  Directors,
                  whose  determination  shall be  conclusive  and described in a
                  Board  Resolution),  as

                                       45
<PAGE>

                  of the  expiration  of  such  tender  or  exchange  offer,  of
                  consideration  payable  in  respect  of any  other  tender  or
                  exchange  offer,  by  the  Company  or any  subsidiary  of the
                  Company  for all or any portion of the Common  Stock  expiring
                  within the 12 months  preceding the  expiration of such tender
                  or  exchange  offer  and in  respect  of which  no  adjustment
                  pursuant to paragraph  (5) of this  Section or this  paragraph
                  (6) has been  made  and  (iii)  the  aggregate  amount  of any
                  distributions  to all holders of the  Company's  Common  Stock
                  made  exclusively  in cash within the 12 months  preceding the
                  expiration of such tender or exchange  offer and in respect of
                  which no adjustment  pursuant to paragraph (5) of this Section
                  or  this  paragraph  (6) has  been  made,  exceeds  15% of the
                  product of the  Current  Market  Price per share of the Common
                  Stock as of the last  time  (the  "Expiration  Time")  tenders
                  could have been made pursuant to such tender or exchange offer
                  (as it may be  amended)  times the  number of shares of Common
                  Stock  outstanding  (including  any  tendered  shares)  at the
                  Expiration  Time,  then,  and in each such  case,  immediately
                  prior to the  opening of business on the day after the date of
                  the Expiration  Time, the Settlement Rate or Early  Settlement
                  Rate, as applicable,  shall be adjusted so that the same shall
                  equal the rate  determined by dividing the Settlement  Rate or
                  Early Settlement Rate, as applicable, immediately prior to the
                  close  of  business  on the date of the  Expiration  Time by a
                  fraction (A) the  numerator of which shall be equal to (x) the
                  product  of (I) the  Current  Market  Price  per  share of the
                  Common Stock on the date of the  Expiration  Time and (II) the
                  number of shares of Common Stock  outstanding  (including  any
                  tendered shares) at the Expiration Time less (y) the amount of
                  cash plus the fair market value  (determined  as aforesaid) of
                  the aggregate  consideration  payable to stockholders based on
                  the  transactions  described  in clauses  (i),  (ii) and (iii)
                  above (assuming in the case of clause (i) the  acceptance,  up
                  to any  maximum  specified  in the  terms  of  the  tender  or
                  exchange offer, of Purchased Shares),  and (B) the denominator
                  of which  shall be equal  to the  product  of (x) the  Current
                  Market  Price  per  share  of  the  Common  Stock  as  of  the
                  Expiration  Time and (y) the number of shares of Common  Stock
                  outstanding   (including  any  tendered   shares)  as  of  the
                  Expiration Time less the number of all shares validly tendered
                  and not withdrawn as of the Expiration Time (the shares deemed
                  so accepted, up to any such maximum,  being referred to as the
                  "Purchased Shares").

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

                                       46
<PAGE>

                  prior to such  reclassification  into the  number of shares of
                  Common  Stock  outstanding  immediately  thereafter  (and  the
                  effective date of such reclassification  shall be deemed to be
                  "the  day  upon  which  such   subdivision  or  split  becomes
                  effective"  or "the day upon  which such  combination  becomes
                  effective,"  as the case may be,  and "the day upon which such
                  subdivision,  split or combination  becomes  effective" within
                  the meaning of paragraph (3) of this Section).

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

                           (9)  CALCULATION OF  ADJUSTMENTS.  All adjustments to
                  the Settlement Rate or Early  Settlement  Rate, as applicable,
                  shall be  calculated  to the nearest  1/10,000th of a share of
                  Common  Stock  (or if there is not a nearest  1/10,000th  of a
                  share to the next lower 1/10,000th of a share).  No adjustment
                  in  the  Settlement   Rate  or  Early   Settlement   Rate,  as
                  applicable,  shall be required  unless such  adjustment  would
                  require  an  increase  or  decrease  of at least  one  percent
                  therein;  provided,  that any  adjustments  which by reason of
                  this subparagraph are not required to be made shall be carried
                  forward and taken into account in any  subsequent  adjustment.
                  If an  adjustment  is made  to the  Settlement  Rate or  Early
                  Settlement  Rate, as  applicable,  pursuant to paragraph  (1),
                  (2), (3),  (4), (5), (6), (7) or (10) of this Section  5.6(a),
                  an  adjustment  shall  also be made to the  Applicable  Market
                  Value solely to determine  which of clauses (i), (ii) or (iii)
                  of the definition of Settlement Rate or Early Settlement Rate,
                  as  applicable,  in  Section  5.1(a)  will  apply on the Stock
                  Purchase Date.  Such  adjustment  shall be made by multiplying
                  the  Applicable  Market Value by a fraction,  the numerator of
                  which shall be the Settlement Rate or Early  Settlement  Rate,
                  as applicable,  immediately after such adjustment  pursuant to
                  paragraph  (1),  (2),  (3), (4), (5), (6), (7) or (10) of this
                  Section  5.6(a)  and the  denominator  of  which  shall be the
                  Settlement  Rate or  Early  Settlement  Rate,  as  applicable,
                  immediately  before such  adjustment;  provided,  that if such
                  adjustment to the Settlement Rate or Early Settlement Rate, as
                  applicable,  is required to be made pursuant to the occurrence
                  of any of the events  contemplated by paragraph

                                       47
<PAGE>

                  (1), (2),  (3),  (4), (5), (7) or (10) of this Section  5.6(a)
                  during the period taken into consideration for determining the
                  Applicable Market Value, appropriate and customary adjustments
                  shall be made to the Settlement Rate or Early Settlement Rate,
                  as applicable.

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

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

                  In the event of

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

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

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

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

each share of Common Stock covered by each Forward  Purchase  Contract forming a
part of an Equity Unit or Stripped Unit, as the case may be,  immediately  prior
to  such  Reorganization  Event  shall,  after  such  Reorganization  Event,  be
converted for purposes of the Forward Purchase Contract into the kind and amount
of securities,  cash and other property receivable in such Reorganization  Event
(without  any  interest   thereon,   and  without  any  right  to  dividends  or
distributions  thereon  which  have a record  date  that is  prior to the  Stock
Purchase Date) per share of Common Stock by a holder of Common Stock that (i) is
not a Person  with which the  Company  consolidated  or into  which the  Company
merged or which  merged into the  Company or to which such sale or transfer  was
made,  as the case may be (any  such  Person,  a  "Constituent  Person"),  or an
Affiliate  of a  Constituent  Person to the  extent  such  Reorganization  Event
provides  for  different  treatment of Common  Stock held by  Affiliates  of the
Company and non-Affiliates,  and (ii) failed to exercise his rights of election,
if any,  as to the  kind or  amount  of  securities,  cash  and  other  property
receivable upon such  Reorganization  Event (provided that if the kind or amount
of securities, cash and other property receivable upon such Reorganization Event
is not the same for each share of Common  Stock held  immediately  prior to such
Reorganization  Event by other than a

                                       48
<PAGE>

Constituent  Person or an Affiliate  thereof and in respect of which such rights
of election shall not have been exercised  ("Non-electing  Share"), then for the
purpose  of this  Section  the kind and  amount  of  securities,  cash and other
property  receivable upon such  Reorganization  Event by each Non-electing Share
shall be deemed to be the kind and amount so receivable per share by a plurality
of the  Non-electing  Shares).  On the Stock Purchase Date, the Settlement  Rate
then in effect will be applied to the value on the Stock  Purchase  Date of such
securities, cash or other property. In the event of such a Reorganization Event,
the Person formed by such consolidation,  merger or exchange or the Person which
acquires  the  assets  of the  Company  or,  in the  event of a  liquidation  or
dissolution  of the  Company,  the  Company or a  liquidating  trust  created in
connection  therewith,  shall  execute  and  deliver  to the Agent an  agreement
supplemental  hereto  providing that the Holder of each  Outstanding  Unit shall
have the rights provided by this Section 5.6. Such supplemental  agreement shall
provide for adjustments  which,  for events  subsequent to the effective date of
such supplemental agreement, shall be as nearly equivalent as may be practicable
to the adjustments  provided for in this Section.  The above  provisions of this
Section shall similarly apply to successive Reorganization Events.

         Section 5.7       NOTICE OF ADJUSTMENTS AND CERTAIN OTHER EVENTS.

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

                           (i) forthwith  compute the  Settlement  Rate or Early
                  Settlement  Rate, as  applicable,  and the  Applicable  Market
                  Value in accordance  with Section 5.6 and prepare and transmit
                  to the  Agent  an  Officer's  Certificate  setting  forth  the
                  Settlement Rate and the Applicable Market Value, the method of
                  calculation  thereof  in  reasonable  detail,  and  the  facts
                  requiring such  adjustment  and upon which such  adjustment is
                  based; and

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

                  (b) The  Agent  shall  not at any  time be  under  any duty or
         responsibility  to any  Holder of Equity  Units and  Stripped  Units to
         determine  whether any facts exist which may require any  adjustment of
         the Settlement Rate or Early  Settlement  Rate, as applicable,  and the
         Applicable  Market  Value,  or with  respect to the nature or extent or
         calculation  of any such  adjustment  when made, or with respect to the
         method  employed in making the same. The Agent shall not be accountable
         with  respect to the  validity  or value (or the kind or amount) of any
         shares of Common Stock, or of any securities or property,  which may at
         any time be issued or delivered  with  respect to any Forward  Purchase
         Contract;  and the

                                       49
<PAGE>

         Agent makes no representation with respect thereto. The Agent shall not
         be  responsible  for any failure of the  Company to issue,  transfer or
         deliver  any  shares of Common  Stock  pursuant  to a Forward  Purchase
         Contract  or to  comply  with any of the  duties,  responsibilities  or
         covenants of the Company contained in this Article.

         Section 5.8       TERMINATION EVENT; NOTICE.

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

         Section 5.9       EARLY SETTLEMENT.

                  (a) Subject to and upon compliance with the provisions of this
         Section 5.9,  Forward  Purchase  Contracts  underlying  Equity Units or
         Stripped  Units may,  at the option of the Holder  thereof,  be settled
         early ("Early Settlement") at any time not later than 10:00 a.m. on the
         seventh Business Day immediately  preceding the Stock Purchase Date. In
         order to exercise the right to effect Early  Settlement with respect to
         any  Forward  Purchase   Contracts,   the  Holder  of  the  Certificate
         evidencing the related Equity Units or Stripped  Units, as the case may
         be, shall deliver such  Certificate to the Agent at the Corporate Trust
         Office duly  endorsed  for transfer to the Company or in blank with the
         form of Election to Settle Early on the reverse  thereof duly completed
         and  accompanied  by  payment  payable to the  Company  in  immediately
         available funds in an amount (the "Early  Settlement  Amount") equal to
         (A) the  product  of (i) the  Stated  Amount  of such  Equity  Units or
         Stripped  Units,  as the case may be,  multiplied by (ii) the number of
         Forward Purchase Contracts with respect to which the Holder has elected
         to effect  Early  Settlement,  plus (B) if such  delivery  is made with
         respect to any Forward  Purchase  Contracts  during the period from the
         close of business on any Record Date next preceding any Payment Date to
         the opening of business on such  Payment  Date,  an amount equal to the
         Contract Adjustment Payments, if any, payable on such Payment Date with
         respect to such Forward  Purchase  Contracts;  provided that no payment
         shall be  required  pursuant  to  clause  (B) of this  sentence  if the
         Company  shall have elected to defer the Contract  Adjustment  Payments
         that  would  otherwise  be  payable on such  Payment  Date and  further
         provided  that,  at that time,  if so  required  by the  United  States
         federal  securities  laws, a registration  statement is in effect and a
         prospectus is available  covering the shares of the Common Stock of the
         Company to be  delivered in respect of the Forward  Purchase  Contracts
         being settled. Except as provided in the immediately preceding sentence
         and subject to Section 5.2(d),  no

                                       50
<PAGE>

         payment  or  adjustment  shall be made  upon  Early  Settlement  of any
         Forward Purchase Contract on any Contract  Adjustment  Payments accrued
         on such Forward Purchase Contract or on account of any dividends on the
         Common  Stock  issued  upon such  Early  Settlement.  If the  foregoing
         requirements  are first  satisfied  with  respect to  Forward  Purchase
         Contracts  underlying any Equity Units or Stripped  Units,  as the case
         may be, at or prior to 5:00  p.m.,  New York City  time,  on a Business
         Day, such day shall be the "Early Settlement Date" with respect to such
         Equity  Units  or  Stripped  Units,  as the  case  may be,  and if such
         requirements  are first  satisfied after 5:00 p.m., New York City time,
         on a Business  Day or on a day that is not a Business  Day,  the "Early
         Settlement  Date" with respect to such Equity Units or Stripped  Units,
         as the case may be, shall be the next succeeding Business Day.

                  (b)  Holders of Equity  Units may settle only in units of ____
         and integral  multiples of ____. If a successful  remarketing  or a Tax
         Event  Redemption  has occurred,  Holders of Stripped  Units may effect
         Early  Settlement  pursuant  to  this  Section  5.9  only  in  integral
         multiples of ______.

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

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

                  (e) Upon Early Settlement of any Forward  Purchase  Contracts,
         and  subject to receipt of shares of Common  Stock from the Company and
         the Pledged Notes, Pledged Treasury  Consideration,  Pledged Applicable
         Ownership  Interest  in the  Treasury  Portfolio,  or Pledged  Treasury
         Securities,  as  the  case  may  be,  from  the  Collateral  Agent,  as
         applicable,  the  Agent  shall,  in  accordance  with the  instructions
         provided by the Holder  thereof on the  applicable  form of Election to
         Settle Early on the reverse of the  Certificate  evidencing the related
         Equity Units or Stripped Units, as the case may be, (i) transfer to the
         Holder the  Pledged  Notes,  Pledged  Treasury  Consideration,  Pledged
         Applicable  Ownership  Interest in the Treasury  Portfolio,  or Pledged
         Treasury Securities,  as the case

                                       51
<PAGE>

         may be, forming a part of such Equity Units or Stripped  Units,  as the
         case  may  be,  and  (ii)  deliver  to  the  Holder  a  certificate  or
         certificates  or  book-entry  interest for the full number of shares of
         Common Stock issuable upon such Early Settlement  together with payment
         in lieu of any fraction of a share, as provided in Section 5.12.

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

         Section 5.10      EARLY SETTLEMENT UPON MERGER.

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

                  Each such notice shall contain:

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

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

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

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

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<PAGE>

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

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

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

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

                  (e) In the event that Merger Early Settlement is effected with
         respect  to Forward  Purchase  Contracts  underlying  less than all the
         Equity  Units or Stripped  Units,  as the case may be,  evidenced  by a
         Certificate,  upon such  Merger  Early  Settlement  the Company (or the
         successor to the Company  hereunder)  shall execute and the Agent shall
         authenticate,  execute on behalf of the Holder  thereof  and deliver to
         the Holder  thereof,  at

                                       53
<PAGE>

         the expense of the Company,  a Certificate  evidencing the Equity Units
         or  Stripped  Units,  as the case  may be,  as to  which  Merger  Early
         Settlement was not effected.

         Section 5.11      CHARGES AND TAXES.

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

         Section 5.12      NO FRACTIONAL SHARES.

         No fractional shares or scrip representing  fractional shares of Common
Stock shall be issued or delivered upon settlement on the Stock Purchase Date or
upon  Early  Settlement  or Merger  Early  Settlement  of any  Forward  Purchase
Contracts.  If Certificates  evidencing more than one Forward Purchase  Contract
shall be surrendered  for settlement at one time by the same Holder,  the number
of full shares of Common Stock which shall be delivered upon settlement shall be
computed  on the basis of the  aggregate  number of Forward  Purchase  Contracts
evidenced by the Certificates so surrendered. Instead of any fractional share of
Common Stock which would otherwise be deliverable upon settlement of any Forward
Purchase Contracts on the applicable Settlement Date or upon Early Settlement or
Merger  Early  Settlement,  the  Company,  through the Agent,  shall make a cash
payment in respect of such  fractional  share in an amount equal to the value of
such  fractional  share times the  Applicable  Market  Value.  The Company shall
provide the Agent from time to time with sufficient funds to permit the Agent to
make all cash payments required by this Section 5.12 in a timely manner.

         Section 5.13      TAX TREATMENT.

         The Company  covenants and agrees and each Holder,  by  purchasing  the
Equity Units agrees, (i) to treat a Holder's  acquisition of the Equity Units as
the  acquisition  of the Note and Forward  Purchase  Contract  constituting  the
Equity Units, (ii) to treat a Holder's  acquisition of the Stripped Units as the
acquisition of the Treasury Security and Forward Purchase Contract  constituting
the Stripped Unit, (iii) to treat each Holder as the owner of the related Notes,
Treasury Consideration,  Applicable Ownership Interest in the Treasury Portfolio
or Treasury  Securities,  as the case may be and (iv) to allocate  the  purchase
price of the Equity Unit between the Note and Forward Purchase Contract as $____
and $____, respectively.

                                  ARTICLE VI.
                                    REMEDIES

         Section 6.1       UNCONDITIONAL RIGHT OF HOLDERS TO PURCHASE COMMON
                           STOCK.

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<PAGE>

                  (a) The Holder of any Equity Units or Stripped  Units,  as the
         case may be shall have the right,  which is absolute and unconditional,
         subject to the right of the Company to defer payment  thereof  pursuant
         to  Section  5.3,  and  to the  forfeiture  of  any  Deferred  Contract
         Adjustment  Payments upon Cash  Settlement  pursuant to Section 5.2(d),
         upon Early  Settlement  pursuant to Section  5.9(a),  upon Merger Early
         Settlement  pursuant  to  Section  5.10 or  upon  the  occurrence  of a
         Termination  Event,  to  receive  payment  of each  installment  of the
         Contract  Adjustment  Payments,  if any,  with  respect to the Purchase
         Contract constituting a part of such Equity Units or Stripped Units, as
         the case may be, on the  respective  Payment Date for such Equity Units
         or Stripped Units, as the case may be, and

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

         Section 6.2       RESTORATION OF RIGHTS AND REMEDIES.

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

         Section 6.3       RIGHTS AND REMEDIES CUMULATIVE.

         Except as otherwise provided with respect to the replacement or payment
of mutilated,  destroyed,  lost or stolen  Certificates in Section  3.10(f),  no
right or remedy herein  conferred upon or reserved to the Holders is intended to
be exclusive of any other right or remedy,  and every right and remedy shall, to
the extent  permitted by law, be cumulative and in addition to every other right
and remedy given  hereunder or now or hereafter  existing at law or in equity or
otherwise.  The  assertion or employment  of any right or remedy  hereunder,  or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

         Section 6.4       DELAY OR OMISSION NOT WAIVER.

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

         Section 6.5       UNDERTAKING FOR COSTS.

         All parties to this Agreement agree, and each Holder of Equity Units or
Stripped  Units,  as the case may be, by its  acceptance of such Equity Units or
Stripped  Units,  as the case may be, shall be deemed to have  agreed,  that any
court may in its  discretion  require,  in any suit for the

                                       55
<PAGE>

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

         Section 6.6       WAIVER OF STAY OR EXTENSION LAWS.

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

                                  ARTICLE VII.
                                    THE AGENT

         Section 7.1       CERTAIN DUTIES, RIGHTS AND IMMUNITIES.

                  (a) The Agent shall act as agent and  attorney-in-fact for the
         Holders of the Equity  Units and  Stripped  Units  hereunder  with such
         powers  as are  specifically  vested  in the Agent by the terms of this
         Agreement,  the Pledge Agreement, the Remarketing Agreement, the Notes,
         the Equity Units and Stripped Units, and any documents  evidencing them
         or related thereto (the  "Transaction  Documents"),  together with such
         other powers as are reasonably incidental thereto. The Agent:

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

                           (2) shall be entitled to  conclusively  rely upon (x)
                  any certificate,  order,  judgment,  opinion,  notice or other
                  communication (including,  without limitation,  any thereof by
                  telephone  or  facsimile)  reasonably  believed  by  it  to be
                  genuine  and  correct and to have been signed or sent by or on
                  behalf of the proper Person or Persons (without being required
                  to

                                       56
<PAGE>

                  determine the correctness of any fact stated therein), (y) the
                  truth of the  statements  and the  correctness of the opinions
                  expressed  therein  and (z)  advice  and  statements  of legal
                  counsel and other experts selected by the Agent;

                           (3) shall in all cases be fully  protected in acting,
                  or  in  refraining   from  acting,   hereunder  or  under  any
                  Transaction Documents in accordance with instructions given by
                  the Company or the Holders in accordance  herewith or with the
                  Transaction Documents;

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

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

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

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

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

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

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

                                       57
<PAGE>

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

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

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

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

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

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

         Section 7.2       NOTICE OF DEFAULT.

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

         Section 7.3       CERTAIN RIGHTS OF AGENT.

         Subject to the provisions of Section 7.1:

                  (a) the  Agent  may  conclusively  rely  and  shall  be  fully
         protected  in acting or  refraining  from acting  upon any  resolution,
         certificate,  statement,  instrument, opinion,

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<PAGE>

         report, notice,  request,  direction,  consent, order, bond, debenture,
         note,  other  evidence  of  indebtedness  or other  paper  or  document
         believed by it to be genuine and to have been  signed or  presented  by
         the proper party or parties;

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

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

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

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

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

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

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

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

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<PAGE>

         Section 7.4       NOT RESPONSIBLE FOR RECITALS, ETC.

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

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

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

         Section 7.6       MONEY HELD IN CUSTODY.

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

         Section 7.7       COMPENSATION AND REIMBURSEMENT.

         The Company agrees:

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

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

                  (c) to  indemnify  the  Agent  for,  and to hold  it  harmless
         against,  any  loss,  liability  or  reasonable  out-of-pocket  expense
         incurred without gross negligence,  willful

                                       60
<PAGE>

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

         Section 7.8       CORPORATE AGENT REQUIRED; ELIGIBILITY.

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

         Section 7.9       RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

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

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

                  (c) The Agent may be removed at any time by Act of the Holders
         of a majority  in number of the  Outstanding  Units upon  delivery of a
         written  notice to the  Agent and the

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         Company.  If the instrument of acceptance by a successor Agent required
         by Section  7.10 shall not have been  delivered  to the Agent within 30
         days  after the  giving  of such  notice  of  removal,  the Agent to be
         removed  may  petition,  at the  expense of the  Company,  any court of
         competent jurisdiction for the appointment of a successor Agent.

                  (d) If at any time:

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

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

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

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

                  (e) If the Agent shall resign,  be removed or become incapable
         of acting,  or if a vacancy  shall occur in the office of Agent for any
         cause,  the Company,  by a Board  Resolution,  shall promptly appoint a
         successor  Agent and shall comply with the applicable  requirements  of
         Section 7.10. If no successor Agent shall have been so appointed by the
         Company  and  accepted  appointment  in the manner  required by Section
         7.10,  any  Holder who has been a bona fide  Holder of Equity  Units or
         Stripped Equity Units for at least six months may, on behalf of himself
         and all others  similarly  situated,  petition  any court of  competent
         jurisdiction for the appointment of a successor Agent.

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

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         Section 7.10      ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

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

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

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

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

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

         Section 7.12      PRESERVATION OF INFORMATION; COMMUNICATIONS TO
                           HOLDERS.

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

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

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         form of  proxy  or  other  communication  which  is  specified  in such
         request,  with reasonable promptness after a tender to the Agent of the
         materials to be mailed and of payment, or provision,  in the absence of
         bad faith, satisfactory to the Agent for the payment, of the reasonable
         expenses of such mailing.

         Section 7.13      FAILURE TO ACT.

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

         Section 7.14      NO OBLIGATIONS OF AGENT.

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

         Section 7.15      TAX COMPLIANCE.

                  (a) The Agent, on its own behalf and on behalf of the Company,
         will comply with all applicable  certification,  information  reporting
         and withholding  (including "backup" withholding)  requirements imposed
         on  it as a  paying  agent  by  applicable  tax  laws,  regulations  or
         administrative  practice with respect to any payments made with

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<PAGE>

         respect to the Equity Units and Stripped Units.  Such compliance  shall
         include,  without  limitation,  the  preparation  and timely  filing of
         required  returns and the timely payment of all amounts  required to be
         withheld to the appropriate taxing authority or its designated agent.

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

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

                                 ARTICLE VIII.
                             SUPPLEMENTAL AGREEMENTS

         Section 8.1       SUPPLEMENTAL AGREEMENTS WITHOUT CONSENT OF HOLDERS.

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

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

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

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

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

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

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

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         Section 8.2       SUPPLEMENTAL AGREEMENTS WITH CONSENT OF HOLDERS.

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

                           (1) change any Payment Date;

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

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

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

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

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

                           (7) reduce the percentage of the outstanding  Forward
                  Purchase  Contracts  the consent of whose  Holders is required
                  for any such supplemental agreement;

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<PAGE>

provided,  that if any amendment or proposal  referred to above would  adversely
affect only the Equity Units or the Stripped Units, then only the affected class
of Holder as of the record date for the Holders entitled to vote thereon will be
entitled to vote on such  amendment or proposal,  and such amendment or proposal
shall not be  effective  except  with the  consent of Holders of not less than a
majority or 100% of such class, as the case may be; provided  further,  however,
that no  agreement,  whether with or without the consent of Holders shall affect
Section 3.16.

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

         Section 8.3       EXECUTION OF SUPPLEMENTAL AGREEMENTS.

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

         Section 8.4       EFFECT OF SUPPLEMENTAL AGREEMENTS.

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

         Section 8.5       REFERENCE TO SUPPLEMENTAL AGREEMENTS.

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

                                  ARTICLE IX.
                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

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

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

                  (a) the Person formed by such  consolidation or into which the
         Company is merged or the Person which acquires by conveyance,  transfer
         or lease the properties and

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<PAGE>

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

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

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

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

         Section 9.2       SUCCESSOR SUBSTITUTED.

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

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

                                   ARTICLE X.
                                    COVENANTS

         Section 10.1      PERFORMANCE UNDER FORWARD PURCHASE CONTRACTS.

         The Company  covenants  and agrees for the benefit of the Holders  from
time to time of the  Equity  Units  and  Stripped  Units  that it will  duly and
punctually  perform its  obligations  under the Forward  Purchase  Contracts  in
accordance with the terms of the Forward Purchase  Contracts and this Agreement.
In the case of Early  Settlement  pursuant to Section 5.9, if the United  States

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federal securities laws so require, the Company will use commercially reasonable
efforts to (i) have in effect a  registration  statement  covering the shares of
Common Stock to be delivered in respect of the Forward Purchase  Contracts being
settled and (ii) provide a prospectus in connection therewith, in each case that
may be used in connection with such Early Settlement.

         Section 10.2      MAINTENANCE OF OFFICE OR AGENCY.

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

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

         Section 10.3      COMPANY TO RESERVE COMMON STOCK.

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

         Section 10.4      COVENANTS AS TO COMMON STOCK.

         The  Company  covenants  that all shares of Common  Stock  which may be
issued  against  tender of payment in respect of any Forward  Purchase  Contract
constituting  a part of the

                                       69
<PAGE>

Outstanding Units will, upon issuance, be duly authorized, validly issued, fully
paid and nonassessable.

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

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

         Section 10.6      ERISA.

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

                            [SIGNATURE PAGES FOLLOW]

                                       70
<PAGE>

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

                                     AMERICAN ELECTRIC POWER COMPANY, INC.

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

<PAGE>

                                     THE BANK OF NEW YORK,
                                     as Forward Purchase Contract Agent

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

                                       2

<PAGE>

                                    EXHIBIT A

                        FORM OF EQUITY UNITS CERTIFICATE

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

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

                   (Form of Face of Equity Units Certificate)

No. ______________                                        CUSIP No. ____________

Number of Equity Units____________

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

                                      A-1
<PAGE>

         Pursuant to the Pledge  Agreement,  the Note, the appropriate  Treasury
Consideration or the Applicable Ownership Interest in the Treasury Portfolio, as
the case may be, constituting part of each Equity Unit evidenced hereby has been
pledged to the Collateral  Agent, for the benefit of the Company,  to secure the
obligations of the Holder under the Forward Purchase Contract  comprising a part
of such Equity Unit.

         The  Pledge  Agreement  provides  that all  payments  in respect of the
Pledged Notes,  Pledged Treasury  Consideration or Pledged Applicable  Ownership
Interest in the Treasury  Portfolio  received by the  Collateral  Agent shall be
paid by the Collateral  Agent by wire transfer in same day funds (i) in the case
of (A) quarterly cash distributions on Equity Units which include Pledged Notes,
Pledged Treasury  Consideration or Pledged Applicable  Ownership Interest in the
Treasury  Portfolio  and (B) any  payments  in respect  of the  Notes,  Treasury
Consideration or Applicable Ownership Interest in the Treasury Portfolio, as the
case may be,  that have been  released  from the Pledge  pursuant  to the Pledge
Agreement,  to the Agent to the account  designated by the Agent,  no later than
10:00 a.m.,  New York City time, on the Business Day such payment is received by
the Collateral Agent (provided that in the event such payment is received by the
Collateral  Agent on a day that is not a Business  Day or after  9:00 a.m.,  New
York City time, on a Business Day, then such payment shall be made no later than
9:30 a.m., New York City time, on the next succeeding  Business Day) and (ii) in
the  case  of  payments  in  respect  of any  Pledged  Notes,  Pledged  Treasury
Consideration  or  Pledged   Applicable   Ownership  Interest  in  the  Treasury
Portfolio,  as the case may be,  to be paid  upon  settlement  of such  Holder's
obligations to purchase Common Stock under the Forward Purchase Contract, to the
Company on the Stock  Purchase Date (as defined  herein) in accordance  with the
terms  of  the  Pledge  Agreement,   in  full  satisfaction  of  the  respective
obligations  of the  Holders of the Equity  Units of which such  Pledged  Notes,
Pledged Treasury  Consideration or Pledged Applicable  Ownership Interest in the
Treasury  Portfolio,  as the case may be, are a part under the Forward  Purchase
Contracts forming a part of such Equity Units. Quarterly distributions on Equity
Units which include Pledged Notes,  Pledged  Treasury  Consideration  or Pledged
Applicable  Ownership  Interest in the Treasury  Portfolio,  as the case may be,
which are payable  quarterly  in arrears on February  16, May 16,  August 16 and
November 16, each year,  commencing  August 16, 2002 (a "Payment Date"),  shall,
subject  to  receipt  thereof  by the Agent  from the  Collateral  Agent (if the
Collateral Agent is the registered  owner thereof),  be paid by the Agent to the
Person in whose name this Equity  Units  Certificate  (or a  Predecessor  Equity
Units Certificate) is registered at the close of business on the Record Date for
such Payment Date.

         Each Forward Purchase Contract evidenced hereby obligates the Holder of
this Equity Units  Certificate  to purchase,  and the Company to sell, on August
16, 2005 (the "Stock  Purchase  Date"),  at a price equal to $____ (the  "Stated
Amount"),  a number of newly issued shares of common stock,  $6.50 par value per
share ("Common Stock"),  of the Company,  equal to the Settlement Rate unless on
or prior to the Stock  Purchase  Date there  shall have  occurred a  Termination
Event or a Cash  Settlement,  Early  Settlement or Merger Early  Settlement with
respect to the Equity Units of which such Forward  Purchase  Contract is a part,
all as  provided  in the  Forward  Purchase  Contract  Agreement  and more fully
described on the reverse hereof.  The Purchase Price (as defined herein) for the
shares of Common  Stock  purchased  pursuant to each Forward  Purchase  Contract
evidenced hereby, if not paid earlier,  shall be paid on the Stock Purchase Date
by  application of payments  received in respect of the Pledged  Notes,  Pledged
Treasury  Consideration or Pledged Applicable Ownership Interest in the Treasury
Portfolio,  as the

                                      A-2
<PAGE>

case may be, pledged to secure the  obligations of the Holder under such Forward
Purchase Contract in accordance with the terms of the Pledge Agreement.

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

         The Company  shall pay on each  Payment Date in respect of each Forward
Purchase Contract forming part of an Equity Unit evidenced hereby an amount (the
"Contract  Adjustment  Payment")  equal to 3.50% per year of the Stated  Amount,
computed  on the basis of a 360-day  year of twelve  30-day  months,  subject to
deferral  at the  option of the  Company as  provided  in the  Forward  Purchase
Contract Agreement and more fully described on the reverse hereof (provided that
if any date on which a Contract  Adjustment Payment is to be made on the Forward
Purchase  Contracts  is not a  Business  Day,  then  payment  of  such  Contract
Adjustment  Payment payable on such date will be made on the next succeeding day
which is a Business  Day,  and no interest or payment will be paid in respect of
such delay,  except  that if such next  succeeding  Business  Day is in the next
succeeding  calendar  year,  then such payment  will be made on the  immediately
preceding Business Day). Such Contract  Adjustment  Payments shall be payable to
the Person in whose name this Equity Units Certificate (or a Predecessor  Equity
Units Certificate) is registered at the close of business on the Record Date for
such Payment Date.

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

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

                                      A-3
<PAGE>

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

                                     AMERICAN ELECTRIC POWER COMPANY, INC.

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

                                      A-4
<PAGE>

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

                                     By:  THE BANK OF NEW YORK, not individually
                                          but solely as Attorney-in-Fact of such
                                          Holder

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

                                      A-5
<PAGE>

                      AGENT'S CERTIFICATE OF AUTHENTICATION

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

                                     THE BANK OF NEW YORK,
                                     as Forward Purchase Contract Agent

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

                                      A-6
<PAGE>

                  (Form of Reverse of Equity Units Certificate)

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

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

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

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

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

                                      A-7
<PAGE>

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

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

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

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

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

                                      A-8
<PAGE>

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

         A Holder of Stripped Units may  reestablish  Equity Units by delivering
to the  Collateral  Agent  Notes in  exchange  for the  release  of the  Pledged
Treasury  Securities  in  accordance  with  the  terms of the  Forward  Purchase
Contract Agreement and the Pledge Agreement.

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

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

                                      A-9
<PAGE>

Adjustment  Payments may be deferred to a date that is after the Stock  Purchase
Date and no such deferral period may end other than on a Payment Date.

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

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

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

         Upon  registration  of transfer of this Equity Units  Certificate,  the
transferee shall be bound (without the necessity of any other action on the part
of such  transferee,  except as may be  required  by the Agent  pursuant  to the
Forward  Purchase  Contract  Agreement),  by the terms of the  Forward  Purchase
Contract Agreement and the Forward Purchase  Contracts  evidenced hereby and the

                                      A-10
<PAGE>

transferor  shall be released from the  obligations  under the Forward  Purchase
Contracts evidenced by this Equity Units Certificate.  The Company covenants and
agrees, and the Holder, by its acceptance hereof, likewise covenants and agrees,
to be bound by the provisions of this paragraph.

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

         The  Company  and each Holder of an Equity  Unit,  and each  Beneficial
Owner thereof,  by its acceptance  thereof or of its interest  therein,  further
agrees  to treat (i) the  purchase  of Equity  Units as the  purchase  of a unit
consisting  of the Forward  Purchase  Contract  and the Note and to allocate the
purchase  price of the Equity Unit  between  the Note and the  Forward  Purchase
Contract as $____ and $____,  respectively,  and (ii) the holder as the owner of
the applicable interest in the Collateral Account,  including the related Notes,
Treasury   Consideration  or  Applicable  Ownership  Interest  in  the  Treasury
Portfolio, as the case may be.

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

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

         The  Company,  the Agent and any agent of the  Company or the Agent may
treat the Person in whose name this Equity Units  Certificate  is  registered as
the owner of the Equity  Units  evidenced  hereby for the  purpose of  receiving
quarterly  payments on the Notes,  the Treasury  Consideration or the Applicable
Ownership  Interest in the  Treasury  Portfolio,  as the case may be,  receiving
payments of Contract  Adjustment  Payments,  if any, and any  Deferred  Contract

                                      A-11
<PAGE>

Adjustment  Payments,  performance of the Forward Purchase Contracts and for all
other  purposes  whatsoever  (subject  to the Record  Date  provisions  hereof),
whether or not any  payments in respect  thereof be overdue and  notwithstanding
any notice to the  contrary,  and neither the Company,  the Agent,  nor any such
agent shall be affected by notice to the contrary.

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

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

                                      A-12
<PAGE>

                                  ABBREVIATIONS

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

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

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

                                      A-13
<PAGE>

                                   ASSIGNMENT

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

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

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

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

Dated:
       -------------------

Signature:
           -------------------------------

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

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

                                      A-14
<PAGE>

                             SETTLEMENT INSTRUCTIONS

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

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

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

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

Name                                                    Name

Address                                                 Address

Social Security or other Taxpayer
Identification Number, if any

                                      A-15
<PAGE>

                            ELECTION TO SETTLE EARLY

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

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

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

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

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

Name                                               Name

Address                                            Address

Social Security or other Taxpayer
Identification Number, if any

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

                                      A-16
<PAGE>

                     (TO BE ATTACHED TO GLOBAL CERTIFICATES)

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

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

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

</TABLE>

                                      A-17
<PAGE>

                                    EXHIBIT B

                       FORM OF STRIPPED UNITS CERTIFICATE

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

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

                  (Form of Face of Stripped Units Certificate)

No.                                                       CUSIP No. ____________

Number of Stripped Units

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

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

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

                                      A-18
<PAGE>

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

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

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

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

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

                                      B-2
<PAGE>

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

                           AMERICAN ELECTRIC POWER COMPANY, INC.

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

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

                           By:  THE BANK OF NEW YORK, not individually but
                                solely as Attorney-in-Fact of such Holder

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

                                      B-3
<PAGE>

                      AGENT'S CERTIFICATE OF AUTHENTICATION

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

                                         THE BANK OF NEW YORK,
                                         as Forward Purchase Contract Agent

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

                                      B-4
<PAGE>

                     (Reverse of Stripped Units Certificate)

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

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

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

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

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

                                      B-5
<PAGE>

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

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

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

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

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

         Subject to the next succeeding paragraph, the Company shall pay on each
Payment Date, the Contract  Adjustment  Payments,  if any, payable in respect of
each Forward  Purchase  Contract to the Person in whose name the Stripped  Units
Certificate evidencing such Forward Purchase Contract is registered at the close
of  business  on the Record  Date for such  Payment  Date.  Contract  Adjustment
Payments,  if any, will be payable at the Office of the Agent in the City of New
York or, at the option of the  Company,  by check  mailed to the  address of the
Person  entitled  thereto at

                                      B-6
<PAGE>

such address as it appears on the Stripped Units Register or by wire transfer to
the account  designated  by such Person in writing at least five  Business  Days
prior to the applicable Payment Date.

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

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

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

         The Forward  Purchase  Contracts and all  obligations and rights of the
Company and the Holders thereunder,  including,  without limitation,  the rights
and  obligations  of Holders to receive

                                      B-7
<PAGE>

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

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

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

         The Company and each Holder of any Stripped Units,  and each Beneficial
Owner thereof,  by its acceptance  thereof or of its interest  therein,  further
agrees to treat (i) the  formation  of Stripped  Units as the purchase of a unit
consisting  of the Purchase  Contract and the Treasury  Securities  and (ii) the
holder  as the  owner of the  applicable  interest  in the  Collateral  Account,
including the Treasury Securities.

                                      B-8
<PAGE>

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

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

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

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

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

                                      B-9
<PAGE>

                                  ABBREVIATIONS

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

TEN COM -                        as tenants in common
UNIF GIFT MIN ACT -              Custodian

                                 (cust)  (minor)
                                 Under Uniform Gifts to Minors Act
                                 (State)

TEN ENT -                        as tenants by the entireties
JT TEN -                         as joint tenants with right of survivorship and
                                 not as tenants in common

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

                                      B-10
<PAGE>

                                   ASSIGNMENT

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

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

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

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

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

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

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

                                      B-11
<PAGE>

                             SETTLEMENT INSTRUCTIONS

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

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

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

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

Name                                         Name

Address                                      Address

Social Security or other Taxpayer
Identification Number, if any

                                      B-12
<PAGE>

                            ELECTION TO SETTLE EARLY

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

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

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

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

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

NAME                                               NAME

Address                                            Address

Social Security or other Taxpayer
Identification Number, if any

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

                                      B-13
<PAGE>

                     (TO BE ATTACHED TO GLOBAL CERTIFICATES)

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

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

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

</TABLE>

                                      B-14
<PAGE>

                                    EXHIBIT C

                INSTRUCTION FROM FORWARD PURCHASE CONTRACT AGENT

                               TO COLLATERAL AGENT

The Bank of New York
101 Barclay Street
New York, New York 10286

Attention:  Corporate Trust Department

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

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

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

                                 THE BANK OF NEW YORK,
                                 as Forward Purchase Contract Agent

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

                                      C-1
<PAGE>

         Please  print  name  and  address  of  Registered  Holder  electing  to
substitute  [Treasury  Securities]  [Notes]  for the  [Pledged  Notes]  [Pledged
Treasury Securities]:

Name:

Social Security or other Taxpayer
Identification Number, if any:

Address:

                                      C-2
<PAGE>

                                    EXHIBIT D

                 INSTRUCTION TO FORWARD PURCHASE CONTRACT AGENT

The Bank of New York,
as Forward Purchase Contract Agent
101 Barclay Street
New York, New York 10286
Attention: Corporate Trust Department
Telecopy:

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

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

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

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

Please print name and address of Registered Holder:

Name:

Social Security or other Taxpayer Identification Number, if any:

Address:

                                      D-1
<PAGE>

                                    EXHIBIT E

                            NOTICE TO SETTLE BY CASH

The Bank of New York,
as Forward Purchase Contract Agent
101 Barclay Street
New York, New York 10286
Attention: Corporate Trust Department
Telecopy: (212) 328-8243

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

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

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

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

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

Please print name and address of Registered Holder:

Social Security or other Taxpayer Identification Number, if any:

                                      E-1

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