Document:

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                                                                    EXHIBIT 4.16

                             ____% Notes Due 2006

     Set forth below are the terms and conditions (the "Notes Terms") of the
series of Securities under the Indenture that shall be designated the __% Notes
Due 2006 (the "Notes") of Sprint Capital Corporation (the "Company").

                                   Article I

                                  DEFINITIONS

     Section 1.1.   Definition of Terms.

     Unless the context otherwise requires:

     (a)  a term defined in the Indenture has the same meaning when used herein;

     (b)  a term defined anywhere in these Note Terms has the same meaning
          throughout;

     (c)  the singular includes the plural and vice versa;

     (d)  headings are for convenience of reference only and do not affect
          interpretation;

     (e)  The following terms have the meanings given to them in the Purchase
Contract Agreement to be dated as of ____________, 2001, among Sprint
Corporation, a Kansas corporation ("Sprint") and Bank One, National Association,
as Purchase Contract Agent (the "Purchase Contract Agreement"): (i) Affiliate;
(ii) Agent; (iii) Applicable Benchmark Treasury; (iv) Applicable Principal
Amount, (v) Authorized Newspaper; (vi) Business Day; (vii) Cash Settlement;
(viii) Clearing Agency; (ix) Clearing Agency Participant; (x) Corporate Trust
Office (xi) Corporate Units; (xii) Equity Units; (xiii) Failed Final
Remarketing; (xiv) Failed Remarketing; (xv) Final Remarketing; (xvi) Final
Remarketing Date; (xvii) Initial Remarketing; (xviii) Initial Remarketing Date;
(xix) Pledge Agreement; (xx) Purchase Contract; (xxi) Purchase Contract
Settlement Date; (xxii) Quotation Agent; (xxiii) Redemption Price; (xxiv)
Remarketing Agreement; (xxv) Reset Announcement Date; (xxvi) Reset Date; (xxvii)
Reset Effective Date; (xxviii) Reset Rate; (xxix) Reset Spread; (xxx) Spin-Off
Transaction; (xxxi) Subsequent Remarketing; (xxxii) Subsequent Remarketing Date;
(xxxiii) Successful Final Remarketing; (xxxiv) Successful Initial Remarking;
(xxxv) Successful Subsequent Remarketing; (xxxvi) Tax Event; (xxxvii) Tax Event
Redemption Date; (xxxviii) Treasury Portfolio; (xxxix) Treasury Portfolio
Purchase Price.

     (f)  The following terms have the meanings given to them in this Section
          1.1(f): "Collateral Agent" means Bank One, National Association

          "Coupon Rate" has the meaning specified in Section 2.4.

          "Global Securities" has the meaning specified in Section 2.3.

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          "Interest Payment Date" has the meaning specified in Section 2.4.

          "Minimum Remarketing Price" has the meaning specified in the
           Remarketing Agreement.

          "Note Repayment Purchase Price" has the meaning specified in Section
           3.4.

          "Put Option" has the meaning set forth in Section 3.4.

          "Put Option Exercise Date" has the meaning set forth in Section 3.4.

          "Regular Record Date" means, with respect to any Interest Payment Date
     for the Notes, the close of business on the first day of the month in which
     such Interest Payment Date falls.

          "Remarketing Agent" means UBS Warburg LLC or any successor thereto or
     replacement Remarketing Agent under the Remarketing Agreement.

     (g)  Other capitalized terms used herein and not defined herein or in the
Purchase Contract Agreement shall have the meanings given to them in the
Indenture.

                                  Article II

                         GENERAL TERMS AND CONDITIONS

     Section 2.1.   Principal Amount and Maturity.

     The Notes shall be limited in aggregate principal amount to $_____. The
Notes will mature on August 17, 2006 (the "Maturity Date").

     Section 2.2.   Form, Payment and Appointment.

     Except as provided in Section 2.3, the Notes shall be issued in fully
registered, certificated form, bearing identical terms. Principal of and
premium, if any, and interest on the Notes will be payable, the transfer of such
Notes will be registrable and such Notes will be exchangeable for Notes bearing
identical terms and provisions at the office or agency of the Company maintained
for such purpose as described below; provided, however, that payment of interest
may be made at the option of the Company by check mailed to the Holder at such
address as shall appear in the Security Register or by wire transfer to an
account appropriately designated by the Holder entitled to payment.

     The Borough of Manhattan, The City of New York is hereby designated as the
place of payment ("Place of Payment") for the Notes, and the office or agency
maintained by the Company in such Place of Payment shall initially be the
Corporate Trust Office of the Trustee. The Registrar, Transfer Agent and Paying
Agent for the Notes shall be Bank One, National Association.

     The Notes shall be issuable in denominations of $25 and integral multiples
of $25 in excess thereof. The Notes may be issued, in whole or in part, in
permanent global form and, if

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issued in permanent global form, the Depositary shall be The Depository Trust
Company or such other depositary as any officer of the Company may from time to
time designate.

     Section 2.3.   Global Securities.

     Any Notes that are no longer part of Corporate Units will be issued
initially in the form of one or more global Notes (the "Global Securities")
registered in the name of the Depositary or its nominee. Unless and until it is
exchanged for the Notes in registered form, such Global Securities may be
transferred, in whole but not in part, only to the Clearing Agency or a nominee
of the Clearing Agency, or to a successor Clearing Agency selected or approved
by the Company or to a nominee of such successor Clearing Agency.

     If at any time (i) the Clearing Agency notifies the Company that it is
unwilling or unable to continue as a Clearing Agency for the Global Securities
and no successor Clearing Agency shall have been appointed within 90 days after
such notification, (ii) the Clearing Agency at any time ceases to be a clearing
agency registered under the Securities Exchange Act of 1934 at any time the
Clearing Agency is required to be so registered to act as such Clearing Agency
and no successor Clearing Agency shall have been appointed within 90 days after
the Company becoming aware of the Clearing Agency's ceasing to be so registered,
(iii) the Company, in its sole discretion, determines that the Global Securities
shall be so exchangeable or (iv) there shall have occurred and be continuing an
Event of Default, the Company shall execute and the Trustee, upon written notice
from the Company, shall authenticate and deliver the Notes in definitive
registered form without coupons, in authorized denominations, and in an
aggregate principal amount equal to the principal amount of the Global Security
in exchange for such Global Security.

     Upon exchange of the Global Security for such Notes in definitive
registered form without coupons, in authorized denominations, the Global
Security shall be cancelled by the Trustee. Such Notes in definitive registered
form issued in exchange for the Global Security shall be registered in such
names and in such authorized denominations as the Clearing Agency, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. The Trustee shall deliver such Notes to the Clearing
Agency for delivery to the Persons in whose names such Notes are so registered.

     Section 2.4.   Interest.

     (a)  The Notes shall bear interest initially at the rate of ____% per year
(the "Coupon Rate") from the original date of issuance through and including the
day immediately preceding the Reset Effective Date and thereafter at the Reset
Rate until the principal thereof is paid or duly made available for payment and
shall bear interest, to the extent permitted by law, compounded quarterly, on
any overdue principal and premium, if any, and on any overdue installment of
interest at the Coupon Rate through and including the day immediately preceding
the Reset Effective Date and thereafter at the Reset Rate, payable quarterly in
arrears on February 17, May 17, August 17 and November 17 of each year (each, an
"Interest Payment Date") commencing on November 17, 2001, to the Person in whose
name such Note, or any predecessor Note, is registered at the close of business
on the Regular Record Date for such interest installment.

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     (b)  The Coupon Rate on the Notes will be reset on the date of a Successful
Remarketing to the applicable Reset Rate (such Reset Rate to be in effect on and
after the Reset Effective Date). In the event of a Failed Final Remarketing, the
Coupon Rate will not be reset. On the applicable Reset Announcement Date, the
Reset Spread and the Applicable Benchmark Treasury to be used to determine the
Reset Rate will be announced by the Company or Sprint. On the Business Day
immediately following such Reset Announcement Date, the Holders of Notes will be
notified of such Reset Spread and Applicable Benchmark Treasury by the Company
or Sprint. Such notice shall be sufficiently given to such Holders of Notes if
published in an Authorized Newspaper.

     (c)  Not later than 7 calendar days nor more than 15 calendar days
immediately preceding the applicable Reset Announcement Date, the Company shall
request that the Clearing Agency or its nominee (or any Successor Clearing
Agency) notify the Holders of the Notes of such Reset Announcement Date, and, in
the case of the Final Remarketing, of the procedures to be followed by such
Holders that wish to elect Cash Settlement on the Business Day immediately
preceding the Purchase Contract Settlement Date.

     (d)  The amount of interest payable for any period shall be computed on the
basis of a 360-day year consisting of twelve 30-day months. Except as provided
in the following sentence, the amount of interest payable for any period other
than a full quarterly period for which interest is computed shall be computed on
the basis of the actual number of days elapsed in such a 90-day period. In the
event that any date on which interest is payable on the Notes is not a Business
Day, then payment of interest payable on such date will be made on the next
succeeding day which is a Business Day (and without any interest or other
payment in respect of any such delay), except that, if such Business Day is in
the next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case with the same force and effect as if made
on such date.

                                  Article III

                            REDEMPTION OF THE NOTES

     Section 3.1.   Tax Event Redemption.

     If a Tax Event shall occur and be continuing, the Company may, at its
option, redeem the Notes (whether underlying Corporate Units or otherwise) in
whole (but not in part) at any time at a price per Note equal to the Redemption
Price. Installments of interest on Notes which are due and payable on or prior
to the Tax Event Redemption Date shall be payable to the Holders of the Notes
registered as such at the close of business on the Regular Record Date. If,
following the occurrence of a Tax Event prior to the Purchase Contract
Settlement Date, the Company exercises its option to redeem the Notes pursuant
to this Section 3.1, the Company shall appoint the Quotation Agent to assemble
the Treasury Portfolio in consultation with the Company. Notice of any
redemption will be mailed at least 30 days but not more than 60 days before the
Tax Event Redemption Date to each registered Holder of the Notes to be repaid at
its registered address. Unless the Company defaults in payment of the Redemption
Price, on and after the Tax Event Redemption Date interest shall cease to accrue
on the Notes.

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     Section 3.2.   Redemption Procedures for Notes.

     Payment of the Redemption Price to each Holder of Notes shall be made by
the Company, no later than 12:00 noon, New York City time, on the Tax Event
Redemption Date, by check or wire transfer in immediately available funds at
such place and to such account as may be designated by each such Holder of
Notes, including the Trustee or the Collateral Agent, as the case may be. If the
Trustee holds immediately available funds sufficient to pay the Redemption Price
of the Notes, then, on such Tax Event Redemption Date, such Notes will cease to
be outstanding and interest thereon will cease to accrue, whether or not such
Notes have been received by the Company, and all other rights of the Holder in
respect of the Notes shall terminate and lapse (other than the right to receive
the Redemption Price upon delivery of such Notes but without interest on such
Redemption Price).

     Section 3.3.   No Sinking Fund.

     The Notes will not be entitled to the benefit of any sinking fund.

     Section 3.4.   Option to Put Notes upon Failed Final Remarketing.

     If a Failed Final Remarketing (as described in Section 5.6(b) of the
Purchase Contract Agreement which is hereby incorporated herein by reference)
has occurred, Holders of Notes who hold such Notes following the Purchase
Contract Settlement Date shall have the right (the "Put Option") to put such
Notes to the Company on September 30, 2004 (the "Put Option Exercise Date"),
upon at least three Business Days prior notice, at a repayment price equal to
the principal amount of such Notes plus an amount equal to the accrued and
unpaid interest thereon to the date of payment (the "Note Repayment Price").

     Section 3.5.   Repurchase Procedure for Notes.

     (a)  In order for the Notes to be repurchased on the Put Option Exercise
Date, the Trustee must receive on or prior to 5:00 p.m. New York City time on
the third Business Day immediately preceding the Put Option Exercise Date, at
its Corporate Trust Office or at an office or agency maintained by the Company
in the Borough of Manhattan, The City of New York as contemplated by Section 2.2
hereof, the Notes to be repurchased with the form entitled "Option to Elect
Repayment" on the reverse of or otherwise accompanying such Notes duly
completed. Any such notice received by the Trustee shall be irrevocable. All
questions as to the validity, eligibility (including time of receipt) and
acceptance of the Notes for repayment shall be determined by the Company, whose
determination shall be final and binding.

     (b)  Payment of the Note Repayment Price shall be made through the Trustee,
subject to the Trustee's receipt of payment from the Company in accordance with
the terms of the Indenture, no later than 12:00 noon, New York City time, on the
Put Option Exercise Date, and to such account as may be designated by the
applicable Holder. If the Trustee holds immediately available funds sufficient
to pay the Note Repayment Price of Notes presented for repayment, then,
immediately prior to the close of business on the Put Option Exercise Date, such
Notes will cease to be outstanding and interest thereon will cease to accrue,
whether or not such Notes have been received by the Company, and all other
rights of the Holder in respect of the Notes, including the Holder's right to
require the Company to repay such Notes, shall terminate and

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lapse (other than the right to receive the Note Repayment Price upon delivery of
such Notes but without interest on such Note Repayment Price). Neither the
Trustee nor the Company will be required to register or cause to be registered
the transfer of any Note for which repayment has been elected.

                                  Article IV
                                    NOTICE

     Section 4.1.   Notice by the Company.

     The Company shall give prompt written notice to a Responsible Officer of
the Trustee of any fact known to the Company that would prohibit the making of
any payment of monies to or by the Trustee in respect of the Notes.
Notwithstanding any of the provisions of the Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts that would prohibit the
making of any payment of monies to or by the Trustee in respect of the Notes;
provided, however, that if the Trustee shall not have received the notice
provided for in this Article IV at least two Business Days prior to the date
upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of, premium, if
any, or interest on any Note), then, notwithstanding anything contained herein
to the contrary, the Trustee shall have full power and authority to receive such
money and to apply the same to the purposes for which they were received, and
shall not be affected by any notice to the contrary that may be received by it
within two Business Days prior to such date.

                                   Article V
                                 FORM OF NOTE

     Section 5.1.   Form of Note.

     The Notes (including the guarantee endorsed thereon) and the Trustee's
certificate of authentication to be endorsed thereon are to be substantially in
the form of Annex A hereto, with such changes therein as the officers of the
Company executing the Notes (by manual or facsimile signature) may approve, such
approval to be conclusively evidenced by their execution thereof.

                                  Article VI
                            ORIGINAL ISSUE DISCOUNT

     Section 6.1.   Original Issue Discount.

     To the extent that such duty is not performed by the Purchase Contract
Agent pursuant to Section 7.14 of the Purchase Contract Agreement, the Company
shall file with the Trustee promptly at the end of each calendar year (i) a
written notice specifying the amount of original issue discount (including daily
rates and accrual periods) accrued on Outstanding Notes as of the end of the
year and (ii) such other specific information relating to such original issue
discount as may then be relevant under the Internal Revenue Code of 1986, as
amended from time to time, and the applicable Treasury Regulations thereunder.

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                                  Article VII
                                  REMARKETING

     Section 7.1.   Notices.

     (a)  In the case of the Initial Remarketing, any Subsequent Remarketing or
the Final Remarketing, not later than 7 nor more than 15 calendar days
immediately preceding the date of such remarketing, the Company shall request
that the Clearing Agency or its nominee (or any successor Clearing Agency or its
nominee) notify the Holders of Notes of such Remarketing and, in the case of a
Final Remarketing, the procedures to be followed by such Holders of Notes
wishing to settle the related Purchase Contracts with separate cash on the
Business Day immediately preceding the Purchase Contract Settlement Date.

     (b)  If the Initial Remarketing and any Subsequent Remarketing have all
resulted in Failed Remarketings, the Company shall request, not later than 7 nor
more than 15 calendar days prior to the Final Remarketing Date that the Clearing
Agency notify the Holders of the Notes of the Final Remarketing and of the
procedures that must be followed if a Holder of Notes wishes to exercise such
Holder's rights with respect to the Put Option if there is a Failed Final
Remarketing.

     Section 7.2.   Initial and Subsequent Remarketing Procedures.

     (a)  Not later than 5:00 P.M., New York City time, on the third Business
Day immediately preceding the Initial Remarketing Date or the second Business
Day immediately preceding a Subsequent Remarketing Date, but not earlier than
the Payment Date immediately preceding such Initial Remarketing Date or
Subsequent Remarketing Date, as the case may be, each Holder of the Notes not
constituting components of Corporate Units may elect to have Notes held by such
Holder remarketed. Holders of Notes that are not a component of Corporate Units
shall give notice of their election to have such Notes remarketed to the
Collateral Agent pursuant to the Pledge Agreement. Any such notice shall be
irrevocable after 5:00 P.M., New York City time, on the third Business Day
immediately preceding the Initial Remarketing Date or the second Business Day
immediately preceding a Subsequent Remarketing Date, as the case may be, and may
not be conditioned upon the level at which the Reset Rate is established.
Promptly after 5:30 P.M., New York City time, on such third Business Day in the
case of the Initial Remarketing, or the second Business Day in the case of a
Subsequent Remarketing, the Trustee, based on the notices received by it prior
to such time (including notices from the Purchase Contract Agent as to Purchase
Contracts for which Cash Settlement has been elected), shall notify the Company
and the Remarketing Agent of the principal amount of Notes to be tendered for
remarketing. Under Section 5.5 of the Purchase Contract Agreement, Notes that
constitute components of Corporate Units will be remarketed as provided therein
and in this Section 7.2. The Notes constituting components of Corporate Units
shall be deemed tendered, notwithstanding any failure by the Holder of such
Corporate Units to deliver or properly deliver such Notes to the Remarketing
Agent for purchase.

     (b)  The right of each Holder to have Notes tendered for the Initial
Remarketing or any Subsequent Remarketing, as the case may be, shall be limited
to the extent that (i) the Remarketing Agent conducts an Initial Remarketing or
any Subsequent Remarketing pursuant to

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the terms of the Remarketing Agreement, (ii) Notes tendered have not been called
for redemption, (iii) the Remarketing Agent is able to find a purchaser or
purchasers for tendered Notes at a price of not less than the Minimum Initial
Remarketing Price, and (iv) such purchaser or purchasers deliver the purchase
price therefor to the Remarketing Agent as and when required. Each Holder of
Notes that are remarketed in a Successful Initial Remarketing or Successful
Subsequent Remarketing agrees that a remarketing fee in an amount set forth in
the Remarketing Agreement may be deducted from the proceeds of the remarketing.

     (c)  On the Initial Remarketing Date and any Subsequent Remarketing Date,
the Remarketing Agent shall use reasonable efforts to remarket, at a price per
Note such that the aggregate price for the Applicable Principal Amount of Notes
is equal to approximately 100.5% of the Treasury Portfolio Purchase Price,
Notes, tendered or deemed tendered for purchase.

     (d)  Notwithstanding the foregoing, any obligation on the part of the
Company, Sprint or the Remarketing Agent to remarket the Notes on the Initial
Remarketing Date or otherwise, other than on the Final Remarketing Date, shall
be subject to the Company's or Sprint's right to defer any remarketing to the
extent Sprint determines in good faith that effecting a remarketing on such date
is not in its best interests.

     Section 7.3.   Final Remarketing Procedures.

     (a)  If the Initial Remarketing and any Subsequent Remarketing have all
resulted in Failed Remarketings, not later than 5:00 P.M., New York City time,
on the third Business Day immediately preceding the Final Remarketing Date, each
Holder of the Notes may elect to have Notes held by such Holder remarketed.
Under Section 5.6 of the Purchase Contract Agreement, Holders of Corporate Units
that do not give notice of intention to make a Cash Settlement of their related
Purchase Contracts shall be deemed to have consented to the disposition of the
Notes constituting a component of such Corporate Units. Holders of Notes that
are not a component of Corporate Units shall give notice of their election to
have such Notes remarketed to the Collateral Agent pursuant to the Pledge
Agreement. Any such notice shall be irrevocable after 5:00 P.M., New York City
time, on the third Business Day immediately preceding the Final Remarketing Date
and may not be conditioned upon the level at which the Reset Rate is
established. Promptly after 5:30 P.M., New York City time, on such third
Business Day, the Trustee, based on the notices received by it prior to such
time (including notices from the Purchase Contract Agent as to Purchase
Contracts for which Cash Settlement has been elected), shall notify the Company
and the Remarketing Agent of the principal amount of Notes to be tendered for
remarketing. Under Section 5.6 of the Purchase Contract Agreement, the Notes
that constitute components of Corporate Units will be remarketed as provided
therein and in this Section 7.3. If any Holder of Corporate Units does not give
a notice of its intention to make a Cash Settlement or gives a notice of
election to tender Notes as described in this Section 7.3(a), the Notes of such
Holder shall be deemed tendered, notwithstanding any failure by such Holder to
deliver or properly deliver such Notes to the Remarketing Agent for purchase.

     (b)  Each Holder shall have the right to have Notes remarketed provided
that (i) the Remarketing Agent conducts a remarketing pursuant to the terms of
the Remarketing Agreement, (ii) Notes tendered have not been called for
redemption, (iii) the Remarketing Agent is able to find a purchaser or
purchasers for tendered Notes at a price of not less than 100% of the

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principal amount thereof, and (iv) such purchaser or purchasers deliver the
purchase price therefor to the Remarketing Agent as and when required. Each
Holder of Notes that are remarketed in a Successful Final Remarketing agrees
that a remarketing fee in an amount set forth in the Remarketing Agreement may
be deducted from the proceeds of the remarketing.

     (c)  If the Initial Remarketing and any Subsequent Remarketings have all
resulted in Failed Remarketings, on the Final Remarketing Date, the Remarketing
Agent shall use reasonable efforts to remarket, at a price equal to
approximately 100.5% of the aggregate principal amount thereof, Notes tendered
or deemed tendered for purchase.

     Section 7.4.   Procedures Applicable to all Remarketings.

     (a)  If, by 4:00 P.M., New York City time, on the Initial Remarketing Date,
any Subsequent Remarketing Date or the Final Remarketing Date, as applicable, a
Failed Remarketing or Failed Final Remarketing, as the case may be, shall have
occurred, the Remarketing Agent shall so advise by telephone the Collateral
Agent, the Purchase Contract Agent, the Company, the Trustee, and Clearing
Agency. If requested by the Collateral Agent, the Purchase Contract Agent, the
Trustee or the Clearing Agency, the Company shall confirm such advice in
writing.

     (b)  If the Remarketing Agent has determined that it will be able to
remarket all Notes tendered or deemed tendered prior to 4:00 P.M. on the Final
Remarketing Date, New York City time, on the Initial Remarketing Date, or any
Subsequent Remarketing Date, the Reset Agent, subject to the terms of the
Remarketing Agreement, shall determine the Reset Rate. The Remarketing Agent
shall so advise by telephone the Collateral Agent, the Purchase Contract Agent,
the Company, Trustee, and Clearing Agency.

     (c)  By approximately 4:30 P.M., New York City time, on the Initial
Remarketing Date, any Subsequent Remarketing Date or Final Remarketing Date, as
applicable, provided that there has not been a Failed Remarketing or Failed
Final Remarketing, as the case may be, the Remarketing Agent shall advise, by
telephone (i) the Collateral Agent, the Purchase Contract Agent, the Company,
Trustee, and Clearing Agency of the Reset Rate determined in the Initial
Remarketing, the Subsequent Remarketing or Final Remarketing, as the case may
be, and the aggregate principal amount of Notes sold in the Initial Remarketing,
the Subsequent Remarketing or Final Remarketing, as the case may be, (ii) each
purchaser (or the Clearing Agency Participant thereof) of the Reset Rate and the
aggregate principal amount of Notes such purchaser is to purchase and (iii) each
purchaser to give instructions to its Clearing Agency Participant to pay the
purchase price on the third Business Day immediately after such Initial
Remarketing Date, Subsequent Remarketing Date or Final Remarketing Date, as the
case may be, in same day funds against delivery of the Notes purchased through
the facilities of the Clearing Agency.

     (d)  In accordance with the Clearing Agency's normal procedures, on the
third Business Day immediately after such Initial Remarketing Date, Subsequent
Remarketing Date or Final Remarketing Date, as the case may be, the transactions
described above with respect to each Note tendered for purchase and sold in the
Initial Remarketing, any Subsequent Remarketing or the Final Remarketing shall
be executed through the Clearing Agency, and the

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accounts of the respective Clearing Agency Participants shall be debited and
credited and such Notes delivered by book entry as necessary to effect purchases
and sales of such Notes. The Clearing Agency shall make payment in accordance
with its normal procedures.

     (e)  If any Holder selling Notes in the Initial Remarketing, any Subsequent
Remarketing or the Final Remarketing fails to deliver such Notes, the Clearing
Agency Participant of such selling Holder and of any other Person that was to
have purchased Notes in the Initial Remarketing, the Subsequent Remarketing or
the Final Remarketing, as the case may be, may deliver to any such other Person
an aggregate principal amount of Notes that is less than the aggregate principal
amount of Notes that otherwise was to be purchased by such Person. In such
event, the aggregate principal amount of Notes to be so delivered shall be
determined by such Clearing Agency Participant, and delivery of such lesser
aggregate principal amount of Notes shall constitute good delivery.

     (f)  The Remarketing Agent shall not be obligated to purchase any Notes in
the Initial Remarketing, any Subsequent Remarketing, the Final Remarketing or
otherwise. Neither the Trustee, the Purchase Contract Agent, Sprint, the Company
nor the Remarketing Agent shall be obligated in any case to provide funds to
make payment upon tender of Notes for remarketing.

     (g)  The tender and settlement procedures set forth herein, including
provisions for payment by purchasers of Notes in the Initial Remarketing, any
Subsequent Remarketing or the Final Remarketing, shall be subject to
modification, notwithstanding any provision to the contrary set forth herein, to
the extent required by the Clearing Agency or if the book-entry system is no
longer available for the Notes at the time of the Initial Remarketing, any
Subsequent Remarketing or the Final Remarketing, as the case may be, to
facilitate the tendering and remarketing of Notes in certificated form. In
addition, the Remarketing Agent may, notwithstanding any provision to the
contrary set forth herein, modify the settlement procedures set forth herein in
order to facilitate the settlement process.

     (h)  Notwithstanding anything contained herein to the contrary, the Reset
Rate shall in no event exceed the maximum rate permitted by applicable law and,
as provided in the Remarketing Agreement, neither the Remarketing Agent nor the
Reset Agent shall have any obligation to determine whether there is any
limitation under applicable law on the Reset Rate or, if there is any such
limitation, the maximum permissible Reset Rate on the Notes and they shall rely
solely upon written notice from the Company (which the Company agrees to provide
prior to the tenth Business Day before the Reset Effective Date in the case of
the Initial Remarketing Date or the Final Remarketing and as soon as practical
after the Company requests, but in no event later than two Business Days prior
to a Subsequent Remarketing, in the case of a Subsequent Remarketing) as to
whether or not there is any such limitation and, if so, the maximum permissible
Reset Rate.

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                                 Article VIII
                   CONSOLIDATION, MERGER, SALE OR CONVEYANCE

     Section 8.1.   Consolidation, Merger, Sale or Conveyance.

     (a)  Sprint shall not merge, consolidate or consummate any other business
combination with any other entity or sell, assign, transfer, lease or convey all
or substantially all of its assets and properties to any person or entity,
unless:

          (i)    Sprint is the continuing corporation or the successor entity or
    its parent expressly assumes Sprint's obligations under the guarantees of
    the Notes;

          (ii)   Sprint or the successor entity or its parent, as applicable, is
    not, immediately after the merger, consolidation, sale, assignment,
    transfer, lease or conveyance, in default of Sprint's obligations under the
    guarantees of the Notes; and

          (iii)  if, as a result of any such merger, consolidation or other
    business combination, properties or assets of Sprint would become subject to
    a mortgage, pledge, lien, security interest or other encumbrance which would
    not be permitted by the Indenture, Sprint or the successor entity or its
    parent, as applicable, shall take such steps as shall be necessary
    effectively to secure the guarantees of the Notes, equally and ratably with
    (or prior to) all indebtedness secured thereby;

          (iv)   Sprint has delivered to the Trustee an Officers' Certificate
     and an Opinion of Counsel, each stating that such merger, consolidation or
     other business combination and, if a supplemental indenture is required in
     connection with such transaction, such supplemental indenture comply with
     this Article and that all conditions precedent in the Indenture provided
     for relating to such transaction have been complied with.

                                  Article IX
                                  ASSIGNMENT

     Section 9.1.   Assignment.

     (a)  In connection with a Spin-Off Transaction, each of the Company and
Sprint may assign its obligations under the Notes or the guarantees, as the case
may be, to one or more entities that, at the time of or immediately before the
effective time of the assignment, are Affiliates of Sprint provided: (i) each
such entity is a corporation organized and existing under the laws of the United
States of America or a U.S. state or the District of Columbia and it expressly
assumes the Company's obligations under the Notes or Sprint's obligations under
the guarantees, as the case may be; (ii) such entity is not, immediately after
the assignment, in default of the payment obligations or other material
obligations under the Notes or the guarantees, as the case may be; and (iii)
immediately after the assignment, the Notes shall have a credit rating equal to
or higher than the credit rating applicable to the Notes immediately before the
assignment, which credit rating shall have been assigned by either Moody's
Investors Service, Inc., or any successor to its rating agency business, or
Standard & Poor's Ratings Group, Inc., or any successor to its rating agency
business.

                                      11

<PAGE>

     (b)  The Company or Sprint, as the case may be, will give at least 30 days'
written notice to Holders of Notes of any proposed assignment.

                                      12

<PAGE>

                                    ANNEX A

                            (FORM OF FACE OF NOTE)

     THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITORY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

                                                             CUSIP No. 852060AK8

                                                       $________________________

                          SPRINT CAPITAL CORPORATION

                         [    ]% SENIOR NOTE DUE 2006

     SPRINT CAPITAL CORPORATION, a Delaware corporation (the "Company", which
term includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay to _________________, or
registered assigns, the principal sum of_________________ Dollars ($___________)
on August 17, 2006 (such date is hereinafter referred to as the "Maturity
Date"), and to pay interest on said principal sum from August ___, 2001 or from
the next recent date to which interest has been paid or duly provided for,
quarterly in arrears on February 17, May 17, August 17 and November 17 of each
year (each such date, an "Interest Payment Date"), commencing on November 17,
2001 initially at the rate of [ ]% per year through and including the day
immediately preceding the Reset Effective Date and thereafter at the Reset Rate
until the principal hereof shall have been paid or duly made available for
payment and, to the extent permitted by law, to pay interest, compounded
quarterly, on any overdue principal and premium, if any, and on any overdue
installment of interest at the rate per year of [ ]% through and including the
day immediately preceding the Reset Effective Date and thereafter at the Reset
Rate. The amount of interest payable on any Interest Payment Date shall be
computed on the basis of a 360-day year consisting of twelve 30-day months and,
except as provided in the Indenture (as defined below), the amount of interest
payable for any period shorter than a full quarterly period for which interest
is computed will be

<PAGE>

computed on the basis of the actual number of days elapsed in such 90-day
period. In the event that any date on which interest is payable on this Note is
not a Business Day, then payment of interest payable on such date will be made
on the next succeeding day that is a Business Day (and without any interest or
other payment in respect of any such delay), except that, if such Business Day
is in the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect
as if made on such Interest Payment Date. The interest installment so payable,
and punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Note (or one
or more predecessor Notes) is registered at the close of business on the Regular
Record Date for such interest installment which shall be the close of business
on the first day of the month in which such Interest Payment Date falls. Any
such interest installment not punctually paid or duly provided for on any
Interest Payment Date shall forthwith cease to be payable to the registered
Holders at the close of business on such Regular Record Date and may be paid to
the Person in whose name this Note (or one or more predecessor Notes) is
registered at the close of business on a special record date to be fixed by the
Trustee for the payment of such defaulted interest, notice whereof shall be
given to the registered Holders of this series of Notes not less than 10 days
prior to such special record date, or may be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange,
if any, on which the Notes may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture.

     The principal of (and premium, if any) and the interest on this Note shall
be payable at the office or agency of the Company maintained for that purpose in
the Borough of Manhattan, The City of New York in any coin or currency of the
United States of America that at the time of payment is legal tender for payment
of public and private debts; provided, however, that payment of interest may be
made at the option of the Company by check mailed to the registered Holder at
such address as shall appear in the Security Register or by wire transfer to an
account appropriately designated by the Holder entitled thereto.

     Reference is hereby made to the further provisions of this Note 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 Trustee referred to on the
reverse hereof by manual signature, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

                                      A-2

<PAGE>

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

                                    Dated:  August ___, 2001

                                    SPRINT CAPITAL CORPORATION

                                    By: ______________________________
                                    Name:
                                    Title:

Attest:

By: ____________________________
Name:
Title:

                                      A-3

<PAGE>

                         CERTIFICATE OF AUTHENTICATION

This is one of the notes of the series designated therein referred to in the
within-mentioned Indenture.

                                    Dated  August ___, 2001

                                    BANK ONE, NATIONAL ASSOCIATION,
                                    as Trustee

                                    By_________________________________
                                             Authorized Signatory

                                      A-4

<PAGE>

                           (FORM OF REVERSE OF NOTE)

     This Note is one of a duly authorized series of Securities of the Company
(herein sometimes referred to as the "Notes"), issued and to be issued in one or
more series under and pursuant to an Indenture dated as of October 1, 1998 (the
"Base Indenture") among the Company, Sprint Corporation, as Guarantor (the
"Guarantor") and Bank One, National Association, as Trustee (the "Trustee,"
which term includes any successor trustee under the Indenture), as supplemented
by a First Supplemental Indenture, dated as of January 15, 1999 (the "First
Supplemental Indenture" and, together with the Base Indenture, the "Indenture")
among the Company, the Guarantor and the Trustee, to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of
the rights, limitations of rights, obligations, duties and immunities thereunder
of the Trustee, the Company, the Guarantor and the Holders of the Notes. By the
terms of the Indenture, the Debt Securities are issuable in series that may vary
as to amount, date of maturity, rate of interest and in other respects as
provided in the Indenture.  This series of Debt Securities is limited in
aggregate principal amount to $[    ].

     If a Tax Event shall occur and be continuing, the Company may, at its
option, redeem the Notes in whole (but not in part) at any time at a price per
Note equal to the Redemption Price. Subject to the terms of the Purchase
Contract Agreement between Sprint Corporation and Bank One, National Association
dated as of August ___, 2001 and the Pledge Agreement dated as of August ___,
2001 between the Guarantor and Bank One, National Association, the Redemption
Price shall be paid to each Holder of the Notes by the Company, no later than
12:00 noon, New York City time, on the Tax Event Redemption Date, by check or
wire transfer in immediately available funds, at such place and to such account
as may be designated by each such Holder.

     The Notes are not entitled to the benefit of any sinking fund.

     If a Failed Final Remarketing (as described in Section 5.6(b) of the
Purchase Contract Agreement and incorporated herein by reference) has occurred,
each holder of Notes who holds such Notes on the day immediately following the
Purchase Contract Settlement Date shall have the right (the "Put Option") to put
such Notes to the Company, on September 30, 2004 (the "Put Option Exercise
Date"), upon at least three Business Days prior notice, at a repayment price
equal to the principal amount of this Note plus an amount equal to the accrued
and unpaid interest thereon to the date of payment (the "Note Repayment Price").

     In order for the Notes to be so repurchased, the Trustee must receive, on
or prior to 5:00 p.m. New York City Time on the third Business Day immediately
preceding the Put Option Exercise Date, at its Corporate Trust Office, or at an
office or agency maintained by the Company in the Borough of Manhattan, The City
of New York, the Notes to be repurchased with the form entitled "Option to Elect
Repayment" on the reverse of or otherwise accompanying such Notes duly
completed.  Any such notice received by the Trustee shall be irrevocable.  All
questions as to the validity, eligibility (including time of receipt) and
acceptance of the Notes for repayment shall be determined by the Company, whose
determination shall be final and binding.  The payment of the Note Repayment
Price in respect of such Notes shall be made no later than 12:00 noon, New York
City time, on the Put Option Exercise Date.

                                      A-5

<PAGE>

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

     The Indenture provides that each Holder of a Note is entitled to the
benefits of a Guarantee by the Guarantor of the timely payment of the principal
of, premium, if any, and interest on the Note.  The Guarantee endorsed hereon is
an integral part of this Note.  The Indenture permits, with certain exceptions
as therein provided, the amendment thereof and the modification of the rights
and obligations of the Company and the Guarantor and the rights of the Holders
of the Notes of each series to be affected under the Indenture at any time by
the Company, the Guarantor and the Trustee with the consent of the Holders of a
majority in principal amount of the Notes at the time Outstanding of each series
to be affected.  The Indenture also contains provisions permitting the Holders
of specified percentages in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Notes of such series, to
waive compliance by the Company and the Guarantor with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Note shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange herefor or
in lieu hereof, whether or not notation of such consent or waiver is made upon
this Note.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Note shall not have the right to institute any proceeding with respect
to the Indenture or for the appointment of a receiver or trustee or for any
other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Notes of this series, the Holders of not less than 25% in principal amount of
the Notes of this series at the time Outstanding shall have made written request
to the Trustee to institute proceedings in respect of such Event of Default as
Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not
have received from the Holders of a majority in principal amount of Notes of
this series at the time Outstanding a direction inconsistent with such request,
and shall have failed to institute any such proceeding, for 60 days after
receipt of such notice, request and offer of indemnity.  The foregoing shall not
apply to any suit instituted by the Holder of this Note for the enforcement of
any payment of principal hereof or any premium or interest hereon on or after
the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligations of the Company and the
Guarantor, which are absolute and unconditional, to pay the principal of and
premium, if any, and interest on this Note at the times and place and at the
rate and in the coin or currency herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note is registrable in the Security Register, upon
surrender of this Note for registration of transfer at the Corporate Trust
Office, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more new

                                      A-6

<PAGE>

Notes of this series and of like tenor, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or
transferees.

     No service charge will be made for any such transfer, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

     The Notes of this series are issuable only in registered form without
coupons in denominations of $25 and any integral multiple thereof.  As provided
in the Indenture and subject to certain limitations therein set forth, Notes of
this series are exchangeable for a like aggregate principal amount of Notes of
this series and of like tenor of a different authorized denomination, as
requested by the Holder surrendering the same.

     Prior to due presentment of this Note for registration of transfer, the
Company, the Guarantor, the Trustee, and agent of the Company, the Guarantor or
the Trustee may treat the Person in whose name this Note is registered as the
owner hereof for all purposes, whether or not this Note be overdue, and neither
the Company, the Guarantor or the Trustee nor any such agent shall be affected
by notice to the contrary.

     So long as the Notes are represented by Global Securities and such Global
Securities are held on behalf of a clearing system, notices to Holders of the
Notes may be given by delivery of the relevant notice to that clearing system
for communication by it to beneficial Holders of the Notes.

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

     Unless the certificate of authentication hereon has been executed by the
Trustee by manual signature, neither this Note nor the Guarantee endorsed hereon
shall be entitled to any benefit under the Indenture or be valid or obligatory
for any purpose.

     This Note shall be governed by the laws of the State of New York.

                                      A-7

<PAGE>

                           OPTION TO ELECT REPAYMENT

     The undersigned hereby irrevocably requests and instructs the Company to
repay $____ principal amount of the within Note, pursuant to its terms, on the
"Put Option Exercise Date," together with any interest thereon accrued but
unpaid to the date of repayment, to the undersigned at:

(Please print or type name and address of the undersigned)

and to issue to the undersigned, pursuant to the terms of the Indenture, a new
Note or Notes representing the remaining aggregate principal amount of this
Note.

For this Option to Elect Repayment to be effective, this Note with the Option to
Elect Repayment duly completed must be received by the Trustee at Bank One,
National Association, 100 East Broad Street, Mail Code OH1-0181, Columbus, Ohio
43215, Attention Global Corporate Trust Services Division, no later than 5:00
p.m. on the third Business Day immediately preceding September 30, 2004.

Dated: ___________________      Signature:________________________________

                                Signature Guarantee:_______________________

Note:  The signature to this Option to Elect Repayment must correspond with the
name as written upon the face of the within Note without alteration or
enlargement or any change whatsoever.

                                      A-8

<PAGE>

                              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.

                                      A-9

<PAGE>

                                  ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Note to:

______________________________________________________________________________

______________________________________________________________________________
(Insert assignee's social security or tax identification number)

______________________________________________________________________________

______________________________________________________________________________
(Insert address and zip code of assignee) and irrevocably appoints

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________
agent to transfer this Note on the books of the Company.  The agent may
substitute another to act for him or her.

Date: ____________________

Signature:
________________________________
Guarantee Signature :_________________________

(Sign exactly as your name appears on the other side of this Note)

                                     A-10

<PAGE>

                              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.

                                     A-11

<PAGE>

                        GUARANTEE OF SPRINT CORPORATION

     FOR VALUE RECEIVED, Sprint Corporation, a corporation duly organized and
existing under the laws of the State of Kansas (the "Guarantor"), hereby fully
and unconditionally guarantees to the Holder of the Note upon which this
Guarantee is endorsed the due and punctual payment of the principal of, premium,
if any, and interest (including interest on any overdue principal and on an
overdue installment of interest) on said Note, when and as the same shall become
due and payable, whether at maturity, by acceleration or redemption or
otherwise, according to the terms thereof and of the Indenture referred to
therein.

     The Guarantor agrees to determine, at least one business day prior to the
date upon which a payment of principal of, or premium, if any, or interest on
said Note is due and payable, whether the Company has available the funds to
make such payment as the same shall become due and payable. In case of the
failure of the Company punctually to pay any such principal, premium, if any, or
interest, the Guarantor hereby agrees to cause any such payment to be made
punctually when and as the same shall become due and payable, whether at
maturity or otherwise, and as if such payment were made by the Company.

     The Guarantor hereby agrees that its obligations hereunder shall be as
principal and not merely as surety, and shall be unconditional, irrevocable, and
absolute, irrespective of the validity, regularity, or enforceability of said
Note or the Indenture, the absence of any action to enforce the same, any
waiver, modification, consent or indulgence by the Holder of said Note or the
Trustee with respect to any provisions hereof or thereof, the recovery of any
judgment against the Company or any action to enforce the same, or any other
circumstances which might otherwise constitute a legal or equitable discharge or
defense of a guarantor. The Guarantor hereby waives diligence, presentment,
notice of non-payment, demand of payment, any right to require a proceeding
first against the Company, filing of claims with a court in the event of merger,
insolvency or bankruptcy of the Company, protest or notice with respect to the
Note upon which this Guarantee is endorsed or indebtedness evidenced thereby and
all notices and demands to the Company or the Guarantor whatsoever and covenants
that this Guarantee will not be discharged except by complete performance of the
obligations contained in said Note and this Guarantee. In the event of a default
in the payment of principal of, premium, if any, or interest on said Note, the
Holder of said Note may institute legal proceedings directly against the
Guarantor to enforce this Guarantee without first proceeding against the
Company.

     The Guarantor shall be subrogated to all rights of the Holder of said Note
against the Company in respect of any amounts paid by the Guarantor pursuant to
the provisions of this Guarantee; provided, however, that the Guarantor shall
not, without the consent of the Holders of all of the Note then Outstanding, be
entitled to enforce or to receive any payments arising out of, or based upon,
such right of subrogation until the principal of, premium, if my, and interest
on all Note shall have been paid in full or payment thereof shall have been
provided for in accordance with the Indenture.

     Notwithstanding anything to the contrary contained herein, if following any
payment of principal, premium, if any or interest by the Company on said Note to
the Holder of the Note it is determined by a final decision of a court of
competent jurisdiction that such payment shall be avoided by a trustee in
bankruptcy (including any debtor-in-possession) as a preference under 11

                                     A-12

<PAGE>

U. S. C. Section 547 (or any successor statute) and such payment is paid by such
Holder to such trustee in bankruptcy, then and to the extent of such repayment
the obligations of the Guarantor hereunder shall remain in full force and
effect.

     This Guarantee ranks equally with all other unsecured and unsubordinated
obligations of the Guarantor. This Guarantee will remain in full force and
effect until the principal of, premium, if any, and interest on the Note have
been fully paid. As provided in the Indenture, the Guarantor may under certain
circumstances assume all rights and obligations of the Company under the
Indenture with respect to the Note.

     This Guarantee shall not be valid or become obligatory for any purpose with
respect to the Note upon which it is endorsed until the certificate of
authentication on said Security shall have been signed by the manual signature
of the Trustee.

     This Guarantee shall be governed by the laws of the State of New York.

     IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be duly
executed under its corporate seal.

                                    SPRINT CORPORATION

                                    By:________________________________

Attest:

_______________________________

                                     A-13<PAGE>

                                                                   Exhibit 10.60

                                                                  No. __________

                      MASTER AGREEMENT TO LEASE EQUIPMENT

     THIS MASTER AGREEMENT TO LEASE EQUIPMENT (this "Agreement") is entered into
as of February 19, 2001, by and between CISCO SYSTEMS CAPITAL CORPORATION
("Lessor"), having its principal place of business at 170 West Tasman Drive,
Mailstop SJC2, 3rd Floor, San Jose, California 95134 and VERADO, INC., a
Colorado corporation  ("Lessee"), having its principal place of business at 8390
East Crescent Parkway, Suite 300, Greenwood Village, Colorado 80111.

                                 I.  THE LEASE

     1.1  Lease of Equipment.  In accordance with the terms and conditions of
this Agreement, Lessor shall lease to Lessee, and Lessee shall lease from
Lessor, the personal property described in the lease schedule(s) (each, a
"Schedule") to be entered into from time to time into which this Agreement is
incorporated (each Schedule, together with this Agreement, a "Lease"), together
with all substitutions, replacements, repairs, parts and attachments,
improvements and accessions thereto (the "Equipment").  Capitalized terms not
otherwise defined in this Agreement have the meanings specified in the
applicable Schedule.  Each Lease shall constitute a separate, distinct, and
independent lease and contractual obligation of Lessee.  Except as expressly set
forth in any Lease, Lessor shall at all times retain the full legal title to the
Equipment, it being expressly agreed by both parties that each Lease is an
agreement of lease only.

     1.2  Equipment Procurement.  Lessee has ordered or shall order the
Equipment pursuant to one or more purchase orders or purchase contracts
(together, "Purchase Order") to or with Cisco Systems, Inc., or a Cisco-approved
reseller (together, "Vendor"), which Purchase Order shall be promptly delivered
to Lessor.  Subject to Lessor's acceptance of such Equipment, as evidenced by
its preparation and delivery to Lessee for signature of a Schedule relating to
such Equipment, Lessee shall be deemed to have assigned to Lessor all Lessee's
right, title and interest in and to the Equipment and the Purchase Order;
provided that Lessor shall have no obligations under the Purchase Order.  Lessee
shall execute and return to Lessor (a) each Schedule within ten days of Lessee's
receipt of same, and (b) each Certificate of Acceptance within ten days of
receipt and acceptance of the applicable Equipment.  If for whatever reason the
lease transaction in respect of the Equipment is not consummated, (i) Lessee
shall remain solely liable to pay Vendor in accordance with the Purchase Order,
and (ii) upon receipt of satisfactory evidence of such payment by Lessee, Lessor
shall assign to Lessee, without warranty, its right, title and interest in and
to the Equipment and the Purchase Order.

     1.3  Term of Lease.  The Original Term of each Lease shall begin on the
Commencement Date as specified in the applicable Schedule and, subject to
Sections 3.5 and 4.2, shall terminate on the date specified in the applicable
Schedule.  If so provided in the applicable Schedule, the Original Term for any
Lease may be succeeded by one or more Extended Terms.  Subject to Sections 3.5
and 4.2 and any express provisions of the Schedule, no Lease may be

                                       1.
<PAGE>

terminated by Lessor or Lessee, for any reason whatsoever, prior to the end of
the Original Term or any pending Extended Term.

     1.4  Rental Payments.  Lessee shall pay Lessor Rent for the Equipment in
the amounts and at the times specified in the applicable Schedule.  All Rent and
other amounts payable by Lessee to Lessor hereunder shall be paid to Lessor at
the address specified above, or at such other place as Lessor may designate in
writing to Lessee from time to time.

     1.5  Return of Equipment.  Upon expiration of the Lease Term, Lessee shall,
within 15 business days, return the Equipment to Lessor in the condition and at
the place provided in Section 3.3.

       II.  DISCLAIMERS AND WARRANTIES; INTELLECTUAL PROPERTY

     2.1  Disclaimers; Warranties.  Lessee represents and acknowledges that the
Equipment is of a size, design, capacity and manufacture selected by it, and
that it is satisfied that the Equipment is suitable for its purposes.  LESSEE
                                                                       ------
LEASES THE EQUIPMENT AS IS, AND, NOT BEING THE MANUFACTURER OF THE EQUIPMENT,
-----------------------------------------------------------------------------
THE MANUFACTURER'S AGENT OR THE SELLER'S AGENT, LESSOR MAKES NO WARRANTY OR
---------------------------------------------------------------------------
REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE MERCHANTABILITY, FITNESS FOR ANY
------------------------------------------------------------------------------
PARTICULAR PURPOSE, DESIGN OR CONDITION OF THE EQUIPMENT.  LESSOR SHALL NOT BE
------------------------------------------------------------------------------
RESPONSIBLE FOR ANY LOSS OR DAMAGE RESULTING FROM THE INSTALLATION, OPERATION OR
--------------------------------------------------------------------------------
OTHER USE, OR DEINSTALLATION OF THE EQUIPMENT, INCLUDING ANY DIRECT, INDIRECT,
------------------------------------------------------------------------------
INCIDENTAL OR CONSEQUENTIAL DAMAGES OR LOSS. Lessee shall look solely to the
-------------------------------------------
manufacturer or the supplier of the Equipment for correction of any problems
that may arise with respect thereto, and all transferable manufacturer and
supplier warranty rights are, to the extent such rights have been transferred to
Lessor, hereby assigned without representation or warranty by Lessor to Lessee
for the Lease Term, which warranties Lessee is authorized to enforce if and when
there exists no Event of Default.  Any such enforcement shall be at Lessee's
sole cost and expense.

     2.2  Intellectual Property.  Lessee acknowledges that neither this
Agreement nor any Lease conveys any explicit or implicit license for the use of
software or other intellectual property of Cisco Systems, Inc. or its affiliates
relating to the Equipment and that such license rights, to the extent they
exist, are contained in separate documentation entered into between Lessee and
Cisco Systems, Inc. or other persons.  LESSOR MAKES NO WARRANTIES OR
                                       -----------------------------
REPRESENTATIONS WHATSOEVER WITH RESPECT TO THE INTELLECTUAL PROPERTY RIGHTS,
----------------------------------------------------------------------------
INCLUDING ANY PATENT, COPYRIGHT AND TRADEMARK RIGHTS, OF ANY THIRD PARTY WITH
-----------------------------------------------------------------------------
RESPECT TO THE EQUIPMENT, WHETHER RELATING TO INFRINGEMENT OR OTHERWISE.  Lessor
-----------------------------------------------------------------------
shall, when reasonably requested in writing by Lessee, provided there exists no
Event of Default and an indemnity satisfactory to Lessor is delivered by Lessee,
and at Lessee's cost and expense, enforce rights of indemnification, if any, for
patent, copyright or other intellectual property infringement obtained from the
manufacturer under any agreement for purchase of the Equipment.  If notified
promptly in writing of any action brought against Lessee based on a claim that
the Equipment infringes a United States patent, copyright or other intellectual
property right, Lessor shall promptly notify the manufacturer thereof for
purposes of exercising, for the benefit of Lessee, Lessor's rights with respect
to such claim under any such agreement.

                                       2.
<PAGE>

                           III.  LESSEE OBLIGATIONS

     3.1  Net Lease; Payments Unconditional.  EACH LEASE IS A NET LEASE, AND ALL
COSTS, EXPENSES AND LIABILITIES RELATING TO THE EQUIPMENT, INCLUDING IN RESPECT
OF TAXES, INSURANCE AND MAINTENANCE, SHALL BE BORNE SOLELY BY LESSEE.  LESSEE'S
OBLIGATION TO PAY ALL RENT AND OTHER SUMS THEREUNDER, AND THE RIGHTS OF LESSOR
IN AND TO SUCH PAYMENTS, SHALL BE ABSOLUTE AND UNCONDITIONAL, AND SHALL NOT BE
SUBJECT TO ANY ABATEMENT, REDUCTION, SETOFF, DEFENSE, COUNTERCLAIM,
INTERRUPTION, DEFERMENT OR RECOUPMENT, FOR ANY REASON WHATSOEVER.

     3.2  Use of Equipment. Lessee shall use the Equipment solely in the conduct
of its business, in a manner and for the use contemplated by the manufacturer
thereof, and in material compliance with all laws, rules and regulations of
every governmental authority having jurisdiction over the Equipment or Lessee
and with the provisions of all policies of insurance carried by Lessee pursuant
to Section 3.6.

     3.3  Delivery; Installation; Return; Maintenance and Repair; Inspection.
Lessee shall be solely responsible, at its own expense, for (a) the delivery of
the Equipment to Lessee, (b) the packing, rigging and delivery of the Equipment
back to Lessor, upon expiration or termination of the Lease Term, in good
repair, condition and working order, ordinary wear and tear excepted, at the
location(s) within the continental United States specified by Lessor, and (c)
the installation, de-installation, maintenance and repair of the Equipment.
During the Lease Term, Lessee shall ensure that the Equipment is covered by a
maintenance agreement, to the extent available, with the manufacturer of the
Equipment or other party reasonably acceptable to Lessor. Lessee shall, at its
expense, keep the Equipment in good repair, condition and working order,
ordinary wear and tear excepted, and at the expiration or termination of the
Lease Term with respect to any of the Equipment, have such Equipment inspected
and certified acceptable for maintenance service by the manufacturer. If any of
the Equipment, upon its return to Lessor, is not in good repair, condition and
working order, ordinary wear and tear excepted, and so inspected and certified,
Lessee shall be obligated to pay Lessor for the out-of-pocket expenses Lessor
incurs in bringing such Equipment up to such status, but not in excess of the
Casualty Value for such Equipment, promptly after its receipt of an invoice for
such expenses. Lessor shall be entitled to inspect the Equipment at reasonable
times.

     3.4  Taxes. Lessee shall pay, and hereby indemnifies Lessor on a net,
after-tax basis, against, and shall hold it harmless from, all license fees,
assessments, and sales, use, property, excise and other taxes and charges, other
than those measured by Lessor's net income, now and hereafter imposed by any
governmental body or agency upon or with respect to any of the Equipment, or the
possession, ownership, use or operation thereof, or any Lease, or the
consummation of the transactions contemplated by any Lease. Notwithstanding the
foregoing, to the extent required of it by applicable law and in reliance upon
Lessee's disclosure of the location of such Equipment, Lessor shall file
personal property tax returns, and shall pay personal property taxes payable
with respect to the Equipment. Lessee shall pay to Lessor the amount of all such
personal property taxes within 15 days of its receipt of an invoice for such
taxes. For any Lease that is specified as an FMV Lease in the applicable
Schedule, Lessee acknowledges that it is the intent of Lessor, and a material
inducement to Lessor to enter into such Lease, to obtain all state and

                                       3.
<PAGE>

Federal income tax benefits of ownership with respect to the Equipment under
such Lease, including entitlement to annual accelerated cost recovery
deductions.

     3.5  Loss of Equipment. Lessee assumes the risk that, and shall promptly
notify Lessor in writing if, any item of Equipment becomes lost, stolen,
damaged, destroyed or otherwise unfit or unavailable for use from any cause
whatsoever (an "Event of Loss") after it has been delivered to a common carrier
for shipment to Lessee. Unless the item is damaged and is reparable within a
reasonable period of time in the judgment of Lessor (in which event Lessee shall
promptly cause such item to be repaired and restored to the condition and value
it had prior to such Event of Loss, at its own cost and expense), Lessee shall
pay to Lessor on the Rent payment date following Lessor's receipt of such notice
(or, if none, 30 days after such Event of Loss), an amount equal to the Rent
payment or payments due and payable with respect to such Equipment on or prior
to such date, plus a sum equal to the Casualty Value of such Equipment as of
such date. Upon making such payment, the Rent for such Equipment shall cease to
accrue, the term of the Lease as to such Equipment shall terminate and (except
in the case of loss, unrecovered theft or complete destruction) Lessor shall be
entitled to recover possession of such Equipment in accordance with the
provisions of Section 3.3 above. If Lessor has received the foregoing amount,
Lessee shall be entitled to the proceeds of any recovery in respect of such
Equipment from insurance or otherwise, provided that if the Equipment is subject
to an FMV Lease, Lessee shall be entitled to receive such proceeds only up to
the Casualty Value therefor, any excess amount to be paid to Lessor.

     3.6  Insurance. Lessee shall obtain and maintain for the Lease Term at its
own expense, property damage and liability insurance and insurance against loss
or damage to the Equipment as a result of fire, explosion, theft, vandalism and
such other risks of loss as are normally maintained on equipment of the type
leased hereunder by companies carrying on the business in which Lessee is
engaged, in such amounts, in such form and with such insurers as shall be
satisfactory to Lessor. Each insurance policy shall name Lessee as insured and
Lessor and its assignees as additional insureds and loss payees thereof as their
interest may appear, and shall provide that it may not be cancelled or altered
without at least 30 days' prior written notice thereof being given to Lessor (or
10 days', in the event of non-payment of premium).

     3.7  Indemnity. Except with respect to a breach of this Agreement by
Lessor, the negligence, gross negligence or willful misconduct of Lessor, Lessee
hereby indemnifies, protects, defends and holds harmless Lessor from and against
any and all claims, liabilities (including negligence, tort and strict
liability), demands, actions, suits, and proceedings, losses, costs, expenses
and damages, including reasonable attorneys' fees and costs (collectively,
"Claims"), arising out of, connected with, or resulting from any Lease or any of
the Equipment, or any ancillary or related software or other intangibles,
whether arising before, during or after the Lease Term (but not Claims relating
to events occurring after Lessee has returned the Equipment to Lessor in
accordance with Section 3.3), including Claims relating to the manufacture,
selection, purchase, delivery, possession, condition, use, operation, return or
other disposition of the Equipment. Each of the parties shall give the other
prompt written notice of any Claim of which it becomes aware.

     3.8  Prohibitions Related to Lease and Equipment. Without the prior written
consent of Lessor, which consent as it pertains to clauses (b) and (d) below
shall not be unreasonably withheld, Lessee shall not: (a) assign, transfer, or
otherwise dispose of any Equipment, the Lease or any rights or obligations
thereunder; (b) sublease any of the Equipment or permit the Equipment to be
controlled by any other person; (c) create or incur, or permit to exist, any
security interest, lien or

                                       4.
<PAGE>

encumbrance with respect to any of the Equipment; (d) cause or permit any of the
Equipment to be moved from the location specified in the applicable Schedule; or
(e) cause or permit any of the Equipment to be moved outside the United States.
However, Lessee may assign the Equipment, Lease or Agreement to a wholly owned
subsidiary, or a majority owned subsidiary of Verado Holdings, Inc. (where
Verado Holdings, Inc. owns greater than fifty percent of the outstanding shares
or securities entitled to vote for election of directors or similar managing
authority) provided that, prior to such action, Lessor receives from Lessee (i)
a financial guaranty by Verado Holdings, Inc., of the subsidiary performance
which is satisfactory to Lessor, and (ii) a statement of the permanent Equipment
location. Such assignment shall not materially change the duties or obligations
of the Lessee hereunder.

     3.9   Identification. Lessee shall place and maintain permanent markings
provided by Lessor on the Equipment evidencing ownership, security and other
interests therein, as specified from time to time by Lessor.

     3.10  Alterations and Modifications. Lessee shall not make any additions,
attachments, alterations or improvements to the Equipment without the prior
written consent of Lessor, not to be unreasonably withheld. Any addition,
attachment, alteration or improvement to any item of Equipment shall belong to
and become the property of Lessor unless, at the request of Lessor, (or in the
discretion of Lessee, unless such additions, attachments, alterations or
improvements have been provided by Lessor or Cisco Systems, Inc., and if not,
only if the value of the Equipment is not diminished) it is removed prior to the
return of such item of Equipment by Lessee. Lessee shall be responsible for all
costs relating to such removal and shall restore such item of Equipment to the
condition and value otherwise required hereunder.

     3.11  Personal Property. Lessee acknowledges and represents that the
Equipment shall be and remain personal property, notwithstanding the manner by
which it may be attached or affixed to realty, and Lessee shall do all acts and
enter into all agreements necessary to ensure that the Equipment remains
personal property. If requested by Lessor with respect to any item of Equipment,
Lessee shall use commercially reasonable efforts to obtain and deliver to Lessor
equipment access agreements, satisfactory to Lessor, from all persons claiming
any interest in the real property on which such item of Equipment is installed
or located.

     3.12  Financial Statements. Lessee shall promptly furnish to Lessor such
publicly filed financial or other statements regarding the condition and
operations of Lessee and any guarantor of any Lease, and information regarding
the Equipment, as Lessor may from time to time reasonably request.

     3.13  Lessee Representations. Lessee hereby represents that, with respect
to this Agreement, and each Schedule, certificate evidencing acceptance of
equipment, assignment of purchase order, insurance letter, proposal letter, UCC
financing statement, or other document now or hereafter executed by Lessee in
connection with any Lease (collectively, "Lease Documents"): (a) the execution,
delivery and performance thereof by Lessee or its attorney-in-fact have been
duly authorized by all necessary corporate, partnership or company action; (b)
the person executing such documents is duly authorized to do so; and (c) such
documents constitute legal, valid and binding obligations of Lessee, enforceable
in accordance with their terms.

                                       5.
<PAGE>

                           IV.  DEFAULT AND REMEDIES

     4.1   Events of Default.  The occurrence of any of the following shall
constitute an "Event of Default" hereunder and under each Lease: (a) Lessee
fails to pay any Rent or other amount due under any Lease within five days after
it becomes due and payable; (b) any representation or warranty of Lessee made in
any Lease Document proves to have been false or misleading in any material
respect as of the date when it was made; (c) Lessee fails to maintain insurance
as required herein or breaches any of clauses (a), (b) or (e) of Section 3.8;
(d) Lessee fails to perform any other covenant, condition or agreement made by
it under any Lease, and such failure continues for 20 days; (e) bankruptcy,
receivership, insolvency, reorganization, dissolution, liquidation or other
similar proceedings are instituted by or against Lessee, any guarantor of any
Lease or any partner of a partnership Lessee or guarantor, or all or any part of
such person's property, under the Federal Bankruptcy Code or other law of the
United States or of any other competent jurisdiction, and, if such proceeding is
brought against such person, it consents thereto or fails to cause the same to
be discharged within 45 days after it is filed; (f) Lessee materially defaults
under any agreement with respect to the purchase or installation of any of the
Equipment; or (g) Lessee or any guarantor of any Lease, or any of their
respective subsidiaries, defaults under any other instrument or agreement with
Lessor or Cisco Systems, Inc.

     4.2   Remedies.  If an Event of Default exists, and remains uncured for 25
days, Lessor may exercise any one or more of the following remedies, in addition
to those arising under applicable law: (a) proceed, by appropriate court action,
to enforce performance by Lessee of the applicable covenants of any or all of
the Leases; (b) terminate any or all Leases by notice to Lessee and take
possession of any or all of the Equipment and, for such purpose, enter upon any
premises where the Equipment is located with or without notice or process of law
and free from all claims by Lessee or any other person, or require Lessee to
assemble the Equipment and deliver it to Lessor in accordance with Section 3.3;
(c) recover any and all direct, and incidental  damages, including all accrued
(up to the point of default) and unpaid Rent and other amounts owing under any
Lease, and (i) for any Lease that is an FMV Lease, the Equipment for which has
not been returned to Lessor in the condition required hereunder, an amount equal
to the Casualty Value thereof; or (ii) for any Lease that is an FMV Lease, the
Equipment for which has been so returned to Lessor, such amounts as are provided
for the lessee breach of a personal property lease under the Uniform Commercial
Code of the jurisdiction specified in Section 5.11 (the "Code"), using the
Discount Rate to calculate present values for such purpose; or (iii) for any
Lease that is not an FMV Lease, an amount equal to the present value, discounted
at the Discount Rate, of the sum of all Rent and other payments remaining to be
paid under such Lease through the Lease Term plus the applicable purchase option
amount specified in Paragraph 7 of the Schedule; and (d) sell or re-lease any or
all of the Equipment, through public or private sale or lease transactions, and
apply the proceeds thereof to Lessee's obligations under such Leases or
otherwise seek recovery in accordance with applicable provisions of the Code.
Lessee shall remain liable for any resulting deficiency and Lessor may retain
any surplus it may realize in connection with an FMV Lease.  The "Discount Rate"
shall be the rate for U.S. Treasury obligations having a constant maturity of
three months, as specified in the Federal Reserve Statistical Release H.15 (or
replacement publication) issued most recently prior to the date of termination
of the Lease.  Lessee shall pay all costs and expenses (including reasonable
attorneys' fees) incurred by Lessor in retaking possession of, and removing,
storing, repairing, refurbishing and selling or leasing such Equipment and
enforcing any obligations of Lessee pursuant to any Lease.

                                       6.
<PAGE>

                               V.  MISCELLANEOUS

     5.1   Performance of Lessee's Obligations. Upon Lessee's failure to pay any
amount or perform any obligation under any Lease when due, subject (where
applicable), to the cure period stated in Section 4.1 herein , Lessor shall
have-the right, but shall not be obligated, to pay such sum or perform such
obligation, whereupon such sum or cost of such performance shall immediately
become due and payable thereunder, with interest thereon at the Default Rate
from the date such payment or performance was made.

     5.2   Right to Use.  So long as no Event of Default exists, neither Lessor
nor its assignee shall interfere with Lessee's right to use the Equipment under
any Lease.

     5.3   Assignment by Lessor.  Lessor may assign or transfer any or all of
Lessor's interest in this Agreement, any Lease, any Equipment or Rents, without
notice to Lessee.  Any assignee of Lessor shall have all of the rights, but none
of the obligations (unless otherwise provided in the applicable assignment), of
a "Lessor" under this Agreement and the applicable Lease, and Lessee agrees that
it will not assert against any assignee any defense, counterclaim or offset that
Lessee may have against Lessor or any preceding assignee, and that upon notice
of such assignment or transfer, it will pay all Rent and other sums due under
this Agreement and the applicable Lease to such assignee or transferee.  Lessor
and Lessee acknowledge that any assignment or transfer by Lessor shall not
materially change Lessee's duties or obligations under this Agreement or any
Lease, nor materially increase the burdens or risks imposed on Lessee nor
materially change Lessor's duty or obligation under this Agreement or any Lease.

     5.4   Further Assurances.  Upon the request of Lessor from time to time,
Lessee shall execute and deliver such further documents and do such further acts
as Lessor may reasonably request in order fully to effect the purposes of this
Agreement or any Lease.  Lessee hereby appoints Lessor its attorney in fact,
coupled with an interest, authorized, without any obligation to do so, (a) to
sign on Lessee's behalf and file, record and register financing statements, and
amendments and continuations thereof, and any other documents relating to liens,
security interests or property rights of Lessor, Lessee or any third person with
respect to any Equipment and ancillary property, in accordance with any Uniform
Commercial Code or other code or statute, and (b) to enforce, in its own name or
in the name of Lessee, claims relating to any Equipment against insurers,
manufacturers or other persons, and to make, adjust, settle, compromise and
receive payments as to such claims.

     5.5   Rights and Remedies. Each right and remedy granted to Lessor under
any Lease shall be cumulative and in addition to any other right or remedy
existing in equity, at law, by virtue of statute or otherwise, and may be
exercised by Lessor from time to time concurrently or independently and as often
and in such order as Lessor may elect. Any failure or delay on the part of
Lessor in exercising any such right or remedy shall not operate as a waiver
thereof.

     5.6   Notices. Any notice, request, demand, consent, approval or other
communication provided for or permitted in relation to any Lease shall be in
writing and shall be conclusively deemed to have been received by a party hereto
on the day it is delivered to such party at its address, or received by the
party at such facsimile number, as is set forth in such Lease (or at such other
addresses or fax numbers such party shall specify to the other party in
writing), or if sent by

                                       7.
<PAGE>

registered or certified mail, return receipt requested, on the fifth day after
the day on which it is mailed, postage prepaid, addressed to such party.

     5.7   Section Headings; Interpretation.  Section headings are inserted for
convenience of reference only and shall not affect any construction or
interpretation of any Lease Document.  In interpreting the provisions of any
Lease Document, (a) the term "including" is not limiting; (b) references to
"person" include individuals, corporations and other legal persons and entities;
(c) the singular of defined terms includes the plural and vice-versa; and (d)
section and paragraph references are to the document in which such reference
appears, unless the context otherwise requires.

     5.8   Entire Lease. This Agreement, together with the other Lease
Documents, constitute the entire agreement between Lessor and Lessee with
respect to the lease of the Equipment. No waiver or amendment of, or any consent
with respect to, any provision of any Lease Document shall bind either party
unless set forth in a writing, specifying such waiver, consent, or amendment,
signed by both parties. WITH THE EXCEPTION OF A COMMON LAW CLAIM OF BREACH OF
CONTRACT, TO THE EXTENT PERMITTED BY APPLICABLE LAW AND NOT OTHERWISE

SPECIFICALLY GRANTED TO LESSEE IN ANY LEASE DOCUMENT, LESSEE HEREBY WAIVES ANY
AND ALL RIGHTS OR REMEDIES CONFERRED UPON A LESSEE UNDER THE CODE OR ANY OTHER
APPLICABLE LAW OR STATUTE, WITH RESPECT TO A DEFAULT BY LESSOR UNDER THIS
AGREEMENT OR ANY LEASE.  Each FMV Lease is intended by the parties as a "finance
lease" under the Code.

     5.9   Severability. Should any provision of any Lease Document be or become
invalid, illegal, or unenforceable under applicable law, the other provisions of
such Lease Document shall not be affected and shall remain in full force and
effect.

     5.10  Attorneys' Fees; Default Interest; Maximum Rates. . Lessee shall
reimburse Lessor for all charges, costs, expenses and attorney's fees incurred
by Lessor (a) in defending or protecting its interests in the Equipment, and (b)
in the enforcement of this Agreement or any Lease. The prevailing party in any
lawsuit or other legal proceeding between Lessor and Lessee, to which this
Agreement or any Lease gives rise, may recover all charges, costs, expenses and
attorney's fees incurred in connection therewith. Any nonpayment of Rent or
other amount payable under any Lease shall result in Lessee's obligation to
promptly pay Lessor on such overdue payment, for the period of time during which
it is overdue (including during any grace period), interest at a rate ("Default
Rate") equal to fourteen percent (14%) per annum. To the extent that any payment
of interest (including any amount deemed imputed interest for purposes of
applicable law) under any Lease Document would otherwise exceed provisions of
any law limiting the highest rate of interest that may be lawfully contracted
for, charged or received by Lessor, such payment amount shall be deemed reduced
to such amount as is equal to or consistent with the highest rate permitted by
applicable law.

     5.11  Governing Law and Jurisdiction. THIS AGREEMENT AND THE OTHER LEASE
DOCUMENTS SHALL BE GOVERNED IN ALL RESPECTS BY THE LAWS OF THE STATE OF
CALIFORNIA. LESSOR AND LESSEE WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY
LITIGATION ARISING FROM ANY LEASE DOCUMENT. LESSOR AND LESSEE CONSENT TO THE
NON-EXCLUSIVE JURISDICTION OF THE

                                       8.
<PAGE>

STATE COURTS OF CALIFORNIA, AND THE FEDERAL COURTS SITTING IN THE STATE OF
CALIFORNIA, FOR THE RESOLUTION OF ANY DISPUTES UNDER ANY LEASE DOCUMENT.

     5.12  Survival. All obligations of Lessee to make payments to Lessor under
any Lease or to indemnify Lessor, including pursuant to Section 3.4 or 3.7
above, with respect to a Lease, and all rights of Lessor hereunder with respect
to a Lease, shall survive the termination of such Lease and the return of the
Equipment.

     5.13  Security. To secure the payment and performance by Lessee of all
obligations under each Lease, Lessee hereby grants Lessor a security interest in
Lessee's right, title and interest, now existing and hereafter arising, in and
to, (a) all Equipment subject to such Lease, (b) all insurance, warranty, rental
and other claims and rights to payment and chattel paper arising out of such
Equipment, and (c) all books, records and proceeds relating to the foregoing.

     5.14  Counterparts; Chattel Paper. Each Lease Document may be executed in
counterparts, and when so executed each counterpart shall be deemed to be an
original, and such counterparts together shall constitute one and the same
instrument. The original of each Schedule shall constitute chattel paper for
purposes of the Code. If there exist multiple originals of a Schedule, the one
marked "Lessor's Copy" or words of similar import, shall be the only chattel
paper.

     5.15  Appendix. Any lease Appendix executed by Lessor and Lessee making
reference to this Agreement is a part of and incorporated into this Agreement by
this reference.

LESSEE, BY THE SIGNATURE BELOW OF ITS AUTHORIZED REPRESENTATIVE, ACKNOWLEDGES
THAT IT HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS
TERMS AND CONDITIONS.  EACH PERSON SIGNING BELOW ON BEHALF OF LESSEE AND LESSOR
REPRESENTS THAT HE OR SHE IS AUTHORIZED TO EXECUTE AND DELIVER THIS AGREEMENT ON
BEHALF OF THEIR RESPECTIVE PARTY.

LESSOR:                                LESSEE:

CISCO SYSTEMS CAPITAL                  VERADO, INC.
CORPORATION

By: /s/ Michael Gonzalez               By: /s/ Steven D. Butler
    -------------------------------    -----------------------------------------
        (Authorized Signature)                  (Authorized Signature)

/s/ Michael Gonzalez,
    Accounting Manager                 Steven D. Butler, Chief Financial Officer
-----------------------------------    -----------------------------------------
            (Name/Title)                            (Name/Title)

                                       9.
<PAGE>

[CISCO SYSTEMS CAPITAL LOGO]

Friday, June 15, 2001

Steven D. Butler
Verado, Inc.
8390 East Crescent Parkway
Greenwood Village, CO 80111

Dear Steve:

Cisco Systems Capital Corporation ("CSC"), a wholly owned subsidiary of Cisco
Systems, Inc. ("Cisco Systems"), specializes in providing innovative finance
solutions for Cisco Systems products and services. We are pleased to present
this proposal ("Proposal") for the transaction described below:

LESSOR:              Cisco Systems Capital Corporation.

LESSEE:              Verado, Inc.

GUARANTOR:           Verado Holdings, Inc.

EQUIPMENT:           Cisco Systems products, or other products satisfactory to
                     CSC, as presented in a quotation from the Cisco Systems
                     Sales Team or a Cisco Value Added Reseller, in form
                     satisfactory to CSC.

EQUIPMENT COST:      In the aggregate, up to $20,400,000.00, including Soft
                     Costs.

SHIP TO:             Locations within the U.S. as advised, and those locations
                     outside the U.S. as may be approved by CSC.

PARTIAL SHIPMENTS:   Please indicate at the bottom of this letter whether Lessee
                     will accept scheduling of partial purchase order shipments.
                     (If not, please note that Cisco Systems will retain
                     shipments until complete.)

LEASE TERM:          24 months.

RENTAL FACTOR:       The rental amount, expressed as a percentage of total
                     equipment cost (including Soft Costs, "Equipment Cost"), is
                     3.542% per month, payable on the 1st day of each, based on
                     a Lease Rate Factor of .03542. These numbers are premised
                     on the assumptions described below at "Soft Costs" and
                     "Adjustment of Rental Factor."

                                                                    Confidential
<PAGE>

Lease Proposal
Page 2 of 4

PERIODIC RENT
PAYMENT:             In accordance with the pricing and configuration referenced
                     above, the rent payment for each Rental Period ("Rent") on
                     the lease would be the total Equipment Cost multiplied by
                     the Lease Rate Factor.

                     Maintenance: Maintenance Factor of .08807 for twelve months
                     of maintenance. For Maintenance equal to the term of the
                     lease see Maintenance Section below.*

                     Cisco Soft Cost and Software License Factor: .04671

                     Notwithstanding the foregoing, CSC is not responsible for
                     maintenance, software or ancillary services relating to the
                     equipment, nor for ensuring that any necessary maintenance
                     or services agreements or software licenses with Cisco
                     Systems or any other third party are in effect at any time.

MAINTENANCE:         *When Cisco's Maintenance is purchased for a term equal to
                     the term of the lease at the time the equipment is
                     purchased, it may be included into the lease at 0%
                     financing over the term of the lease. Take the cost of the
                     maintenance and divide it by the term of the lease to
                     calculate the monthly payment.

ADVANCE PAYMENTS/
INTERIM RENT:        None, but deemed acceptance of the equipment will take
                     place 30 days after shipment of the final piece of
                     equipment per schedule. There is no interim rent, ans
                     commencement of rental payments will occur on the 1st of
                     the month on or after acceptance or deemed acceptance.

NET LEASE:           This is a net lease transaction under which all costs and
                     liabilities, including without limitation, for insurance,
                     maintenance and taxes, are paid by Lessee for the term of
                     the lease. Transferable manufacturer's guarantees or
                     warranties will be passed on to Lessee, assuming due
                     performance of Lessee obligations.

ADJUSTMENT OF
RENTAL FACTOR:       The rental amount quoted in this Proposal will be adjusted
                     prior to the date of preparation of any Equipment Lease
                     Schedule to reflect changes equal to or greater than one
                     quarter of one percent (.25%) in the weekly average of the
                     Three Year Treasury Note interest rate, as specified in
                     Federal Reserve statistical release H.15 from the week
                     preceding the date of this Proposal to the week preceding
                     the date of preparation of the Schedule. Changes to the
                     benchmark rate of less than one quarter of one percent
                     (.25%) will not affect the Lease Rate Factor quoted herein.
                     The Three Year Treasury Note H.15 statistic is updated
                     weekly by the U.S. Federal Reserve for the preceding week's
                     average yield. The statistic is publicly available on the
                     Internet at http://www.bog.frb.fed.us/releases/h15/.

                                                                    Confidential
<PAGE>

Lease Proposal
Page 3 of 4

EQUIPMENT
PROCUREMENT:         Purchase orders for equipment shall be placed by Lessee
                     with Cisco Systems, Inc., or a Cisco Value Added Reseller,
                     with all rights assigned to Lessor upon Lessor's election
                     to fund. All such purchase orders shall be subject to the
                     standard Terms and Conditions of Sale of Cisco Systems,
                     Inc. or such Cisco Value Added Reseller, including the "net
                     30" payment terms commencing from date of shipment. No
                     funding shall occur prior to execution by the parties of
                     CSC's standard Master Agreement to Lease Equipment ("Master
                     Lease Agreement"). If, for any reason, Lessor does not fund
                     any equipment or lease, or any contemplated lease is
                     otherwise not consummated, Lessee shall be solely
                     responsible for payment in full of the purchase price
                     (together with ancillary costs and expenses) associated
                     with any outstanding orders.

INVOICING:           Monthly.

END OF LEASE
OPTIONS:             At the end of the Original Term of the Lease, Lessee may
                     select one of the following options: (1) purchase the
                     equipment for the then Fair Market Value (to be defined in
                     the Lease documentation), or (2) subject to the consent of
                     Lessor, renew the lease of the equipment on a
                     month-to-month basis for the daily equivalent of the
                     original Rent, payable monthly in advance, or (3) return
                     the Equipment to the Lessor.

UTILIZATION PERIOD:  All purchase orders for equipment under this Proposal shall
                     be submitted no later than September 30, 2001.

DOCUMENTATION FEE:   None.

OTHER FEES:          None.

EXPIRATION DATE:     This Proposal shall terminate 30 days from today's date.

CONDITIONS OF
APPROVAL:            CSC requires an Insurance Bond or Letter of Credit equal to
                     20% of the Amount Financed for the term of the lease. The
                     Insurance Bond or Letter of Credit must be in a form
                     satisfactory to CSC in its sole discretion. The provider of
                     the Insurance Bond or Letter of Credit must be approved by
                     CSC.

CREDIT APPROVAL:     This Proposal includes only a brief description of the
                     substantive terms and conditions of the contemplated lease
                     transactions and is not intended as a formal commitment of
                     credit by CSC or Cisco Systems. Any funding by CSC for the
                     purchase of equipment is subject to the ongoing credit
                     approval of CSC (including the absence of any material
                     adverse change, in the

                                                                    Confidential
<PAGE>

Lease Proposal
Page 4 of 4

                     judgment of CSC, in the business or financial condition or
                     prospects of Lessee) and to satisfactory documentation
                     including as described below. Provided Verado's credit is
                     satisfactory pursuant to the terms of this Proposal, and
                     the required 20% insurance bond of Letter of Credit is in
                     place, for each order placed by Verado, funding by CSC (as
                     reviewed, and where approved by CSC, on an order by order
                     basis) will be provided. You agree to provide two years'
                     audited financial statements, bank references, a completed
                     credit application and any other required credit
                     information along with the signed copy of this Proposal.
                     You hereby authorize CSC and/or its agents to make a
                     complete credit investigation and to relate this
                     information to others as necessary to secure credit
                     approval.

The parties acknowledge that the financing contemplated by this Proposal is
subject to the above-referenced conditions and the execution and delivery of all
appropriate documents (in form and substance satisfactory to CSC), including
without limitation, to the extent applicable, the Master Lease Agreement, any
Schedule, certificate of acceptance, lease assignment of purchase order, UCC
financing statements, legal opinion and other documents and agreements
reasonably required by CSC.

This Proposal is confidential and may not be disclosed to any person or entity
without our consent. Lessee agrees that it shall not, without CSC's prior
written consent, disclose the existence or terms of any financing facility with
CSC or use the name or logo of CSC or Cisco Systems in any press release,
advertisement or other public pronouncement, nor represent to any person that
the relationship between Lessee and CSC or Cisco Systems is other than that of
seller and lessor of equipment and/or lender. Thank you for the opportunity to
present this Proposal. We look forward to doing business with you. If you have
any questions, please do not hesitate to call me at 949-788-5145.

Sincerely,                               ACKNOWLEDGED AND AGREED:
Kathy Murphy
US Service Provider Leasing              Verado Holdings, Inc.
  Account Manager
CISCO SYSTEMS CAPITAL CORPORATION
4 Venture, Suite 100                     By: /s/ Stephen D. Butler
Irvine, CA  92618                           ----------------------------------
Fax: 520-962-5776                                (Authorized Signature)
Email: katmurph@cisco.com                Name:  Stephen D. Butler
       ------------------                     --------------------------------
                                         Title: Chief Financial Officer
                                               -------------------------------
                                         Dated: 7/23/01
                                               -------------------------------

                                         Lessee is / is not [circle one] willing
                                         to accept scheduling of partial
                                         purchase order shipments. [Note:
                                         Failure to circle either option shall
                                         be deemed an instruction not to
                                         schedule partial purchase order
                                         shipments.]

                                                                    Confidential

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