Document:

<PAGE>

                                                                     EXHIBIT 4.4

================================================================================

                           DOMINION RESOURCES, INC.

                                      and

               BANK ONE TRUST COMPANY, N.A., as Collateral Agent

                                      and

           BANK ONE TRUST COMPANY, N.A., as Securities Intermediary

                                      and

             THE CHASE MANHATTAN BANK, as Purchase Contract Agent

                           ________________________

                               PLEDGE AGREEMENT

                         Dated as of October 12 , 2000

================================================================================
<PAGE>

                               Table of Contents
<TABLE>
<CAPTION>
                                                                                                     Page
<S>                                                                                                  <C>
Section 1.      Definitions..........................................................................   1

Section 2.      Pledge...............................................................................   5
        Section 2.1     Pledge.......................................................................   5
        Section 2.2     Control; Financing Statement.................................................   5
        Section 2.3     Termination..................................................................   5

Section 3.      Distributions on Pledged Collateral..................................................   5
        Section 3.1     Income Distributions.........................................................   5
        Section 3.2     Principal Payments Following Termination Event...............................   5
        Section 3.3     Principal Payments Prior To or On Purchase Contract Settlement Date..........   6
        Section 3.4     Payments to Purchase Contract Agent..........................................   6
        Section 3.5     Assets Not Properly Released.................................................   6

Section 4.      Control..............................................................................   6
        Section 4.1     Establishment of Collateral Account..........................................   6
        Section 4.2     Treatment as Financial Assets................................................   7
        Section 4.3     Sole Control by Collateral Agent.............................................   7
        Section 4.4     Securities Intermediary's Location...........................................   7
        Section 4.5     No Other Claims..............................................................   7
        Section 4.6     Investment and Release.......................................................   8
        Section 4.7     Statements and Confirmations.................................................   8
        Section 4.8     Tax Allocations..............................................................   8
        Section 4.9     No Other Agreements..........................................................   8
        Section 4.10    Powers Coupled With An Interest..............................................   8

Section 5.      Initial Deposit; Establishment of Treasury PIES and Reestablishment of
                Corporate PIES.......................................................................   9
        Section 5.1     Initial Deposit of Senior Notes..............................................   9
        Section 5.2     Establishment of Treasury PIES...............................................   9
        Section 5.3     Reestablishment of Corporate PIES............................................  10
        Section 5.4     Termination Event............................................................  10
        Section 5.5     Cash Settlement..............................................................  11
        Section 5.6     Early Settlement.............................................................  13
        Section 5.7     Application of Proceeds Settlement...........................................  13

Section 6.      Voting Rights........................................................................  14

Section 7.      Rights and Remedies..................................................................  15
        Section 7.1     Rights and Remedies of the Collateral Agent..................................  15
        Section 7.2     Substitutions................................................................  15
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                                                                                     Page
<S>                                                                                                  <C>
Section 8.      Representations and Warranties; Covenants............................................  16
        Section 8.1     Representations and Warranties...............................................  16
        Section 8.2     Covenants....................................................................  16

Section 9.      The Collateral Agent and the Securities Intermediary.................................  17
        Section 9.1     Appointment, Powers and Immunities...........................................  17
        Section 9.2     Instructions of the Company..................................................  18
        Section 9.3     Reliance by Collateral Agent and Securities Intermediary.....................  18
        Section 9.4     Rights in Other Capacities...................................................  18
        Section 9.5     Non-Reliance on Collateral Agent and Securities Intermediary.................  19
        Section 9.6     Compensation and Indemnity...................................................  19
        Section 9.7     Failure to Act...............................................................  19
        Section 9.8     Resignation of Collateral Agent and Securities Intermediary..................  20
        Section 9.9     Right to Appoint Agent or Advisor............................................  22
        Section 9.10    Survival.....................................................................  22
        Section 9.11    Exculpation..................................................................  22

Section 10.     Amendment............................................................................  22
        Section 10.1    Amendment Without Consent of Holders.........................................  22
        Section 10.2    Amendment with Consent of Holders............................................  23
        Section 10.3    Execution of Amendments......................................................  23
        Section 10.4    Effect of Amendments.........................................................  23
        Section 10.5    Reference to Amendments......................................................  24

Section 11.     Miscellaneous........................................................................  24
        Section 11.1    No Waiver....................................................................  24
        Section 11.2    Governing Law................................................................  24
        Section 11.3    Notices......................................................................  24
        Section 11.4    Successors and Assigns.......................................................  25
        Section 11.5    Counterparts.................................................................  25
        Section 11.6    Severability.................................................................  25
        Section 11.7    Expenses, etc................................................................  25
        Section 11.8    Security Interest Absolute...................................................  26
</TABLE>

EXHIBIT A  Instruction from Purchase Contract Agent to Collateral Agent
           (Establishment of Treasury PIES)
EXHIBIT B  Instruction from Collateral Agent to Securities Intermediary
           (Establishment of Treasury PIES)
EXHIBIT C  Instruction from Purchase Contract Agent to Collateral Agent
           (Reestablishment of Corporate PIES)
EXHIBIT D  Instruction from Collateral Agent to Securities Intermediary
           (Reestablishment of Corporate PIES)
EXHIBIT E  Notice of Cash Settlement from the Securities Intermediary to the
           Purchase Contract Agent

                                     -ii-
<PAGE>

     PLEDGE AGREEMENT, dated as of October 12, 2000, among DOMINION RESOURCES,
INC., a Virginia corporation (the "Company"), BANK ONE TRUST COMPANY, N.A., a
national banking association, not individually but solely as collateral agent
(in such capacity, together with its successors in such capacity, the
"Collateral Agent"), BANK ONE TRUST COMPANY, N.A., not individually but solely
in its capacity as a securities intermediary with respect to the Collateral
Account (in such capacity, together with its successors in such capacity, the
"Securities Intermediary"), and THE CHASE MANHATTAN BANK, a New York banking
corporation, not individually but solely as purchase contract agent and as
attorney-in-fact of the Holders from time to time of the Securities (in such
capacity, together with its successors in such capacity, the "Purchase Contract
Agent") under the Purchase Contract Agreement.

                                   RECITALS

     The Company and the Purchase Contract Agent are parties to the Purchase
Contract Agreement dated as of the date hereof (as modified and supplemented and
in effect from time to time, the "Purchase Contract Agreement"), pursuant to
which there are being issued 8,250,000 PIES (the "Securities").

     Each Corporate PIES, at issuance, consists of a unit comprised of (a) one
stock purchase contract (the "Purchase Contract") under which (i) the Holder
will purchase from the Company on the Purchase Contract Settlement Date, for an
amount equal to $50 (the "Stated Amount"), a number of shares of Common Stock
equal to the Settlement Rate, and (ii) the Company will pay the Holder Contract
Adjustment Payments and (b) a 2000 Series G 8.05% Senior Note due November 15,
2006 of the Company (a "Senior Note"), having a principal amount equal to the
Stated Amount and maturing on November 15, 2006.

     Pursuant to the terms of the Purchase Contract Agreement and the Purchase
Contracts, the Holders of the Securities have irrevocably authorized the
Purchase Contract Agent, as attorney-in-fact of such Holders, among other
things, to execute and deliver this Agreement on behalf of such Holders and to
grant the pledge provided herein of the Collateral Account to secure the
Obligations.

     Accordingly, the Company, the Collateral Agent, the Securities Intermediary
and the Purchase Contract Agent, on its own behalf and as attorney-in-fact of
the Holders from time to time of the Securities, agree as follows:

Section 1.  Definitions.
            -----------

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

            (a) the terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular;

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

            (c) the following terms which are defined in the UCC shall have the
meanings set forth therein: "certificated security," "control," "financial
asset," "entitlement order," "securities account" and "security entitlement;"

            (d) the following terms have the meanings assigned to them in the
Purchase Contract Agreement: "Act," "Bankruptcy Code," "Board Resolution,"
"Business Day," "Cash Settlement," "Certificate," "Common Stock," "Contract
Adjustment Payments," "Corporate PIES," "Early Settlement," "Early Settlement
Amount," "Failed Remarketing," "Holder," "Officers' Certificate," "Opinion of
Counsel," "Outstanding Securities," "Person," "PIES," "Purchase Contract
Settlement Date," "Purchase Price," "Remarketing," "Remarketing Agent,"
"Remarketing Agreement," "Settlement Rate," "Supplemental Indenture,"
"Termination Event," and "Treasury PIES;" and

            (e) the following terms have the meanings given to them in this
section 1(e):

     "Agreement" means this Pledge Agreement, as the same may be amended,
modified or supplemented from time to time.

     "Cash" means any coin or currency of the United States as at the time shall
be legal tender for payment of public and private debts.

     "Collateral" means the collective reference to:

            (1) the Collateral Account;

            (2) all investment property and other financial assets from time to
     time credited to the Collateral Account, including, without limitation, (A)
     Senior Notes and security entitlements relating thereto which are a
     component of the Corporate PIES from time to time, (B) any Treasury
     Securities and security entitlements relating thereto delivered from time
     to time upon establishment of Treasury PIES in accordance with Section 5.2
     hereof and (C) payments made by Holders pursuant to Section 5.5 hereof;

            (3) all Proceeds of any of the foregoing (whether such Proceeds
     arise before or after the commencement of any proceeding under any
     applicable bankruptcy, insolvency or other similar law, by or against the
     pledgor or with respect to the pledgor); and

            (4) all powers and rights now owned or hereafter acquired under or
     with respect to the Collateral Account.

     "Collateral Account" means the Securities Account No. 205024-000 entitled
"BANK ONE TRUST COMPANY, N.A., as Collateral Agent, Securities Account (Dominion
Resources, Inc.)" maintained by the Securities Intermediary for the Purchase
Contract Agent on behalf of and as attorney-in-fact for the Holders.

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

                                       2
<PAGE>

     "Obligations" means, with respect to each Holder, the collective reference
to all obligations and liabilities of such Holder under such Holder's Purchase
Contract and this Agreement or any other document made, delivered or given in
connection herewith or therewith, in each case whether on account of principal,
interest (including, without limitation, interest accruing before and after the
filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to such Holder, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding),
fees, indemnities, costs, expenses or otherwise (including, without limitation,
all fees and disbursements of counsel to the Company or the Collateral Agent or
the Securities Intermediary that are required to be paid by the Holder pursuant
to the terms of any of the foregoing agreements).

     "Permitted Investments" means any one of the following which shall mature
not later than the next succeeding Business Day:

          (1) any evidence of indebtedness with an original maturity of 365 days
     or less issued, or directly and fully guaranteed or insured, by the United
     States of America or any agency or instrumentality thereof (provided that
     the full faith and credit of the United States of America is pledged in
     support of the timely payment thereof or such indebtedness constitutes a
     general obligation of it);

          (2) deposits, certificates of deposit or acceptances with an original
     maturity of 365 days or less of any institution which is a member of the
     Federal Reserve System having combined capital and surplus and undivided
     profits of not less than $200,000,000 at the time of deposit, which may
     include the Collateral Agent or any of its affiliates;

          (3) investments with an original maturity of 365 days or less of any
     Person that are fully and unconditionally guaranteed by a bank referred to
     in clause (2);

          (4) repurchase agreements and reverse repurchase agreements relating
     to marketable direct obligations issued or unconditionally guaranteed by
     the United States Government or issued by any agency thereof and backed as
     to timely payment by the full faith and credit of the United States
     Government;

          (5) investments in commercial paper, other than commercial paper
     issued by the Company or its affiliates, of any corporation incorporated
     under the laws of the United States or any State thereof, which commercial
     paper has a rating at the time of purchase at least equal to "A-1" by
     Standard & Poor's Ratings Services ("S&P") or at least equal to "P-1" by
     Moody's Investors Service, Inc. ("Moody's"); and

          (6) investments in money market funds registered under the Investment
     Company Act of 1940, as amended, rated in the highest applicable rating
     category by S&P or Moody's, which may include such money market funds
     offered, administered or serviced by the Collateral Agent or any of its
     affiliates.

     "Pledge" means the lien and security interest created by this Agreement.

                                       3
<PAGE>

     "Pledged Senior Notes" means the Senior Notes and security entitlements
with respect thereto from time to time credited to the Collateral Account and
not then released from the Pledge.

     "Pledged Treasury Securities" means Treasury Securities and security
entitlements with respect thereto from time to time credited to the Collateral
Account and not then released from the Pledge.

     "Proceeds" has the meaning ascribed thereto in the UCC and includes,
without limitation, all interest, dividends, cash, instruments, securities,
financial assets (as defined in (S) 8-102(a)(9) of the UCC) and other property
received, receivable or otherwise distributed upon the sale, exchange,
collection or disposition of any financial assets from time to time held in the
Collateral Account.

     "Purchase Contract Agent" has the meaning specified in the paragraph
preceding the recitals of this Agreement.

     "TRADES" means the Treasury/Reserve Automated Debt Entry System maintained
by the Federal Reserve Bank of New York pursuant to the TRADES Regulations.

     "TRADES Regulations" means the regulations of the United States Department
of the Treasury, published at 31 C.F.R. Part 357, an amended from time to time.
Unless otherwise defined herein, all terms defined in the TRADES Regulations are
used herein as therein defined.

     "Transfer" means:

          (1) in the case of certificated securities in registered form,
     delivery as provided in (S) 8-301(a) of the UCC, indorsed to the transferee
     or in blank by an effective indorsement

          (2) in the case of Treasury Securities, registration of the transferee
     as the owner of such Treasury Securities on TRADES; and

          (3) in the case of security entitlements, including, without
     limitation, security entitlements with respect to Treasury Securities, a
     securities intermediary indicating by book entry that such security
     entitlement has been credited to the transferee's securities account.

     "Treasury Security" means a zero-coupon U.S. Treasury Security which has a
principal amount at maturity of $1,000 and matures on or prior to November 15,
2004.

     "UCC" means the Uniform Commercial Code as in effect in the State of New
York from time to time.

     "Value" means, with respect to any item of Collateral on any date, as to
(i) Cash, the face amount thereof, (ii) Senior Notes, the aggregate principal
amount thereof and (iii) Treasury Securities, the aggregate principal amount
thereof at maturity.

                                       4
<PAGE>

Section 2.  Pledge.
            ------

        Section 2.1    Pledge.
        -----------    ------

          Each Holder, acting through the Purchase Contract Agent as such
Holder's attorney-in-fact, hereby pledges and grants to the Collateral Agent, as
agent of and for the benefit of the Company, a continuing first priority
security interest in and to, and a lien upon and right of set off against, all
of such Holder's right, title and interest in and to the Collateral to secure
the prompt and complete payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of the Obligations. The Collateral Agent
shall have all of the rights, remedies and recourses with respect to the
Collateral afforded a secured party by the UCC, in addition to, and not in
limitation of, the other rights, remedies and recourses afforded to the
Collateral Agent by this Agreement.

        Section 2.2    Control; Financing Statement.
                       ----------------------------

               (a)  The Collateral Agent shall have control of the Collateral
Account pursuant to the provisions of Section 4.3 of this Agreement.

               (b)  On the date of initial issuance of the Securities, the
Company shall file in the Office of the Secretary of State of the State of New
York, a financing statement signed by the Purchase Contract Agent, as attorney-
in-fact for the Holders, as debtors, and the Collateral Agent, describing the
Collateral.

        Section 2.3    Termination.
        --------------------------

               As to each Holder, this Agreement and the Pledge created hereby
shall terminate upon the satisfaction of such Holder's Obligations. Upon
termination, the Securities Intermediary shall Transfer the Collateral to the
Purchase Contract Agent for distribution to such Holder in accordance with its
interest, free and clear of any lien, pledge or security interest created
hereby.

Section 3.     Distributions on Pledged Collateral.
               -----------------------------------

        Section 3.1    Income Distributions.
        -----------------------------------

          All income distributions, including interest, received by the
Securities Intermediary on account of the Senior Notes or Permitted Investments
from time to time held in the Collateral Account shall be distributed to the
Purchase Contract Agent for the benefit of the applicable Holders as provided in
the Purchase Contracts.

        Section 3.2    Principal Payments Following Termination Event.
        -------------------------------------------------------------

          All payments received by the Securities Intermediary following a
Termination Event of (1) the principal amount of Pledged Senior Notes or (2) the
principal amount of the Pledged Treasury Securities, shall be distributed to the
Purchase Contract Agent for the benefit of the applicable Holders for
distribution to such Holders in accordance with their respective interests.

                                       5
<PAGE>

     Section 3.3    Principal Payments Prior To or On Purchase Contract
     ------------------------------------------------------------------
Settlement Date.
---------------

          (a)  Subject to the provisions of Section 7.2, and except as provided
in clause 3.3(b) below, if, to the knowledge of the Securities Intermediary, no
Termination Event shall have occurred, all payments received by the Securities
Intermediary of (1) the principal amount with respect to the Pledged Senior
Notes or (2) the principal amount of Pledged Treasury Securities shall be held
and invested at the written direction of the Company in Permitted Investments
until the Purchase Contract Settlement Date and on the Purchase Contract
Settlement Date distributed to the Company as provided in Section 5.7 hereof.
Any balance remaining in the Collateral Account shall be distributed to the
Purchase Contract Agent for the benefit of the applicable Holders for
distribution to such Holders in accordance with their respective interests.

          (b)  All payments received by the Securities Intermediary of (1) the
principal amount of Senior Notes or security entitlements thereto or (2) the
principal amount of Treasury Securities or security entitlements thereto that,
in each case, have been released from the Pledge shall be distributed to the
Purchase Contract Agent for the benefit of the Holders to be distributed to such
Holders in accordance with their respective interests.

     Section 3.4    Payments to Purchase Contract Agent.
     --------------------------------------------------

          Payments to the Purchase Contract Agent hereunder shall be made to the
account designated by the Purchase Contract Agent for such purpose not later
than 12:00 p.m. (New York City time) on the Business Day such payment is
received by the Securities Intermediary; provided, however, that if such payment
is received by the Securities Intermediary on a day that is not a Business Day
or after 11:00 a.m. (New York City time) on a Business Day, then such payment
shall be made no later than 10:30 a.m. (New York City time) on the next
succeeding Business Day.

     Section 3.5    Assets Not Properly Released.
     -------------------------------------------

          If the Purchase Contract Agent or any Holder shall receive any
principal payments on account of financial assets credited to the Collateral
Account and not released therefrom in accordance with this Agreement, the
Purchase Contract Agent or such Holder shall hold the same as trustee of an
express trust for the benefit of the Company and, upon receipt of an Officers'
Certificate so directing, promptly deliver the same to the Securities
Intermediary for credit to the Collateral Account or to the Company for
application to the obligations of the Holders under the related Purchase
Contracts, and the Purchase Contract Agent and Holders shall acquire no right,
title or interest in any such payments of principal amounts so received.

Section 4.  Control.
            -------

     Section 4.1    Establishment of Collateral Account.
     --------------------------------------------------

          The Securities Intermediary hereby confirms that:

          (1)  the Securities Intermediary has established the Collateral
     Account;

                                       6
<PAGE>

          (2)  the Collateral Account is a securities account;

          (3)  subject to the terms of this Agreement, the Securities
     Intermediary shall treat the Purchase Contract Agent as entitled to
     exercise the rights that comprise any financial asset credited to the
     Collateral Account;

          (4)  all property delivered to the Securities Intermediary pursuant
     to this Agreement or the Purchase Contract Agreement or the Indenture will
     be credited promptly to the Collateral Account; and

          (5)  all securities or other property underlying any financial assets
     credited to the Collateral Account shall be registered in the name of the
     Securities Intermediary, indorsed to the Securities Intermediary, or in
     blank or credited to another securities account maintained in the name of
     the Securities Intermediary, and in no case will any financial asset
     credited to the Collateral Account be registered in the name of the
     Purchase Contract Agent or any Holder, payable to the order of the Purchase
     Contract Agent or any Holder or specially indorsed to the Purchase Contract
     Agent or any Holder.

     Section 4.2    Treatment as Financial Assets.
     --------------------------------------------

          Each item of property (whether investment property, financial asset,
security, instrument or cash) credited to the Collateral Account shall be
treated as a financial asset.

     Section 4.3    Sole Control by Collateral Agent.
     -----------------------------------------------

          Except as provided in Section 6, at all times prior to the termination
of the Pledge, the Collateral Agent shall have sole control of the Collateral
Account, and the Securities Intermediary shall take instructions and directions
with respect to the Collateral Account solely from the Collateral Agent.  If at
any time the Securities Intermediary shall receive an entitlement order issued
by the Collateral Agent and relating to the Collateral Account, the Securities
Intermediary shall comply with such entitlement order without further consent by
the Purchase Contract Agent or any Holder or any other Person.  Until
termination of the Pledge, the Securities Intermediary will not comply with any
entitlement orders issued by the Purchase Contract Agent or any Holder.

     Section 4.4    Securities Intermediary's Location.
     -------------------------------------------------

          The Collateral Account and the rights and obligations of the
Securities Intermediary, the Collateral Agent, the Purchase Contract Agent and
the Holders with respect thereto shall be governed by the laws of the State of
New York.  Regardless of any provision in any other agreement, for purposes of
the UCC, New York shall be deemed to be the Securities Intermediary's location.

     Section 4.5    No Other Claims.
     ------------------------------

          Except for the claims and interest of the Collateral Agent and of the
Purchase Contract Agent and the Holders in the Collateral Account, the
Securities Intermediary does not know of any claim to, or interest in, the
Collateral Account or in any financial asset credited

                                       7
<PAGE>

thereto. If any person asserts any lien, encumbrance or adverse claim (including
any writ, garnishment, judgment, warrant of attachment, execution or similar
process) against the Collateral Account or in any financial asset carried
therein, the Securities Intermediary will promptly notify the Collateral Agent
and the Purchase Contract Agent.

     Section 4.6    Investment and Release.
     -------------------------------------

          All proceeds of financial assets from time to time deposited in the
Collateral Account shall be invested and reinvested as provided in this
Agreement.  At all times prior to termination of the Pledge, no property shall
be released from the Collateral Account except in accordance with this Agreement
or upon written instructions of the Collateral Agent.

     Section 4.7    Statements and Confirmations.
     -------------------------------------------

          The Securities Intermediary will promptly send copies of all
statements, confirmations and other correspondence concerning the Collateral
Account and any financial assets credited thereto simultaneously to each of the
Purchase Contract Agent and the Collateral Agent at their addresses for notices
under this Agreement.

     Section 4.8    Tax Allocations.
     ------------------------------

          All items of income, gain, expense and loss recognized in the
Collateral Account shall be reported to the Internal Revenue Service and all
state and local taxing authorities under the names and taxpayer identification
numbers of the Holders that are the beneficial owners thereof.  Neither the
Collateral Agent nor the Securities Intermediary shall have any responsibility
for such tax reporting.

     Section 4.9    No Other Agreements.
     ----------------------------------

          The Securities Intermediary has not entered into, and prior to the
termination of the Pledge will not enter into, any agreement with any other
Person relating to the Collateral Account or any financial assets credited
thereto, including, without limitation, any agreement to comply with entitlement
orders of any Person other than the Collateral Agent.

     Section 4.10    Powers Coupled With An Interest.
     -----------------------------------------------

          The rights and powers granted in this Section 4 to the Collateral
Agent have been granted in order to perfect its security interests in the
Collateral Account, are powers coupled with an interest and will be affected
neither by the bankruptcy of the Purchase Contract Agent or any Holder nor by
the lapse of time.  The obligations of the Securities Intermediary under this
Section 4 shall continue in effect until the termination of the Pledge.

                                       8
<PAGE>

Section 5.  Initial Deposit; Establishment of Treasury PIES and Reestablishment
----------  -------------------------------------------------------------------
            of Corporate PIES
            -----------------

     Section 5.1    Initial Deposit of Senior Notes.
     ----------------------------------------------

          Prior to or concurrently with the execution and delivery of this
Agreement, the Purchase Contract Agent, on behalf of the initial Holders of the
Corporate PIES, shall Transfer to the Securities Intermediary, for credit to the
Collateral Account, the Senior Notes or security entitlements relating to such
Senior Notes, and the Securities Intermediary shall indicate by book entry that
a securities entitlement to such Senior Notes has been credited to the
Collateral Account.

     Section 5.2    Establishment of Treasury PIES.
     ---------------------------------------------

          (a)  At any time on or prior to the seventh Business Day immediately
preceding the Purchase Contract Settlement Date, a Holder of Corporate PIES
shall have the right to establish or reestablish Treasury PIES by substitution
of Treasury Securities or security entitlements thereto for the Pledged Senior
Notes comprising a part of such Holder's Corporate PIES in integral multiples of
20 Corporate PIES by:

          (1)  transferring to the Securities Intermediary for credit to the
     Collateral Account Treasury Securities or security entitlements thereto
     having a Value equal to the principal amount of the Pledged Senior Notes to
     be released;

          (2)  delivering to the Purchase Contract Agent a notice,
     substantially in the form of Exhibit C to the Purchase Contract Agreement,
     whereupon the Purchase Contract Agent shall deliver to the Collateral Agent
     a notice, substantially in the form of Exhibit A hereto, (A) stating that
     such Holder has Transferred Treasury Securities or security entitlements
     thereto to the Securities Intermediary for credit to the Collateral
     Account, (B) stating the Value of the Treasury Securities or security
     entitlements thereto Transferred by such Holder and (C) requesting that the
     Collateral Agent release from the Pledge the Pledged Senior Notes that are
     a component of such Corporate PIES; and

          (3)  delivering the related Corporate PIES to the Purchase Contract
     Agent.

Upon receipt from the Purchase Contract Agent of a notice substantially in the
form of Exhibit A hereto and confirmation that Treasury Securities or security
entitlements thereto have been credited to the Collateral Account as described
in such notice, the Collateral Agent shall instruct the Securities Intermediary
by a notice, substantially in the form of Exhibit B hereto, to release such
Pledged Senior Notes from the Pledge by Transfer to the Purchase Contract Agent
for distribution to such Holder, free and clear of any lien, pledge or security
interest created hereby.

          (b)  Upon credit to the Collateral Account of Treasury Securities or
security entitlements thereto delivered by a Holder of Corporate PIES and
receipt of the related instruction from the Collateral Agent, the Securities
Intermediary shall release the Pledged Senior Notes specified in such
instruction and shall promptly transfer the same to the Purchase

                                       9
<PAGE>

Contract Agent for distribution to such Holder, free and clear of any lien,
pledge or security interest created hereby.

     Section 5.3    Reestablishment of Corporate PIES.
     ------------------------------------------------

          (a)  At any time on or prior to the seventh Business Day immediately
preceding the Purchase Contract Settlement Date, a Holder of Treasury PIES shall
have the right to reestablish Corporate PIES by substitution of Senior Notes or
security entitlements thereto for Pledged Treasury Securities in integral
multiples of 20 Treasury PIES by:

          (1)  transferring to the Securities Intermediary for credit to the
     Collateral Account Senior Notes or security entitlements thereto having a
     principal amount equal to the Value of the Pledged Treasury Securities to
     be released;

          (2)  delivering to the Purchase Contract Agent a notice,
     substantially in the form of Exhibit C to the Purchase Contract Agreement,
     whereupon the Purchase Contract Agent shall deliver to the Collateral Agent
     a notice, substantially in the form of Exhibit C hereto, (A) stating that
     such Holder has Transferred Senior Notes or security entitlements thereto
     to the Securities Intermediary for credit to the Collateral Account and (B)
     requesting that the Collateral Agent release from the Pledge the Pledged
     Treasury Securities related to such Treasury PIES; and

          (3)  delivering the related Treasury PIES to the Purchase Contract
     Agent.

Upon receipt from the Purchase Contract Agent of a notice substantially in the
form of Exhibit C hereto and confirmation that Senior Notes or security
entitlements thereto have been credited to the Collateral Account as described
in such notice, the Collateral Agent shall instruct the Securities Intermediary
by a notice, substantially in the form provided in Exhibit D hereto, to release
such Pledged Treasury Securities from the Pledge by Transfer to the Purchase
Contract Agent for distribution to such Holder.

          (b)  Upon credit to the Collateral Account of Senior Notes or
security entitlements thereto  and receipt of the related instruction from the
Collateral Agent, the Securities Intermediary shall release the applicable
Pledged Treasury Securities specified in such instruction and shall promptly
Transfer the same to the Purchase Contract Agent for distribution to such
Holder, free and clear of any lien, pledge or security interest created hereby.

     Section 5.4    Termination Event.
     --------------------------------

          (a)  Upon receipt by the Collateral Agent of written notice from the
Company or the Purchase Contract Agent that a Termination Event has occurred,
the Collateral Agent shall release all Collateral from the Pledge and shall
promptly Transfer any Pledged Senior Notes and any Pledged Treasury Securities
to the Purchase Contract Agent for the benefit of the Holders, for distribution
to such Holders in accordance with their respective interests, free and clear of
any lien, pledge or security interest or other interest created hereby.

          (b)  If such Termination Event shall result from the Company's
becoming a debtor under the Bankruptcy Code, and if the Collateral Agent shall
for any reason fail promptly

                                      10
<PAGE>

to effectuate the release and Transfer of all Pledged Senior Notes or the
Pledged Treasury Securities, as the case may be, as provided by this Section
5.4, the Purchase Contract Agent shall:

          (1)  request an opinion letter of a nationally recognized law firm
     reasonably acceptable to the Collateral Agent to the effect that, as a
     result of the Company's being the debtor in such a bankruptcy case, the
     Collateral Agent will not be prohibited from releasing or Transferring the
     Collateral as provided in this Section 5.4, and shall deliver such opinion
     to the Collateral Agent within ten days after the occurrence of such
     Termination Event, and if (A) the Purchase Contract Agent shall be unable
     to obtain such opinion within ten days after the occurrence of such
     Termination Event or (B) the Collateral Agent shall continue, after
     delivery of such opinion, to refuse to effectuate the release and Transfer
     of all Pledged Senior Notes, all the Pledged Treasury Securities or the
     Proceeds of any of the foregoing, as the case may be, as provided in this
     Section 5.4, then the Purchase Contract Agent shall within thirty days
     after the occurrence of such Termination Event commence an action or
     proceeding in the court having jurisdiction of the Company's case under the
     Bankruptcy Code seeking an order requiring the Collateral Agent to
     effectuate the release and transfer of all Pledged Senior Notes or all the
     Pledged Treasury Securities, as the case may be, as provided by this
     Section 5.4; or

          (2)  commence an action or proceeding like that described in clause
     5.4(b)(1)(B) hereof within ten days after the occurrence of such
     Termination Event.

The Purchase Contract Agent shall be deemed to have complied with Section
5.4(b)(1), and shall not be required to commence any action or proceeding
referred to therein, if it shall have either obtained such an opinion letter or
requested such an opinion from three such nationally recognized law firms
reasonably acceptable to the Collateral Agent.

     Section 5.5    Cash Settlement.
     ------------------------------

          (a)  Upon receipt by the Collateral Agent of (1) a notice from the
Purchase Contract Agent promptly after the receipt by the Purchase Contract
Agent of a notice that a Holder of a Corporate PIES or Treasury PIES has
elected, in accordance with the procedures specified in Section 5.4(a)(i) or
(d)(i) of the Purchase Contract Agreement, respectively, to effect a Cash
Settlement and (2) payment by such Holder by deposit in the Collateral Account
on or prior to 11:00 a.m. (New York City time) on the fifth Business Day
immediately preceding the Purchase Contract Settlement Date in the case of
Corporate PIES, and the Business Day immediately preceding the Purchase Contract
Settlement Date in the case of the Treasury PIES, of the Purchase Price in
lawful money of the United States by certified or cashier's check or wire
transfer of immediately available funds payable to or upon the order of the
Securities Intermediary, then the Collateral Agent shall upon receipt of written
directions from the Company:

          (1)  instruct the Securities Intermediary promptly to invest any such
     Cash in Permitted Investments;

                                      11
<PAGE>

          (2)  release from the Pledge (i)  in the case of a Holder of
     Corporate PIES, the related Pledged Senior Notes, or (ii)  in the case of a
     Holder of Treasury PIES, the related Pledged Treasury Securities, with a
     principal amount or principal amount at maturity, as the case may be, equal
     to the product of (x) the Stated Amount times (y) the number of Purchase
     Contracts as to which such Holder has elected to effect a Cash Settlement
     pursuant to this Section 5.5(a); and

          (3)  instruct the Securities Intermediary to Transfer all such
     Pledged Senior Notes or Pledged Treasury Securities, as the case may be, to
     the Purchase Contract Agent for the benefit of such Holders, in each case
     free and clear of the Pledge created hereby, for distribution to such
     Holder.

Upon receipt of the proceeds upon the maturity of the Permitted Investments on
the Purchase Contract Settlement Date, the Collateral Agent shall (A) instruct
the Securities Intermediary to pay the portion of such proceeds and deliver any
certified or cashier's checks received, in an aggregate amount equal to the
Purchase Price, to the Company on the Purchase Contract Settlement Date, and (B)
instruct the Securities Intermediary to release any amounts in respect of the
interest earned from such Permitted Investments to the Purchase Contract Agent
for distribution to such Holder.

          (b)  If a Holder of a Corporate PIES notifies the Purchase Contract
Agent as provided in paragraph 5.4(a)(i) of the Purchase Contract Agreement of
its intention to pay the Purchase Price in cash, but fails to make such payment
as required by paragraph 5.4(a)(ii) of the Purchase Contract Agreement, such
Holder shall be deemed to have consented to the disposition of the Pledged
Senior Notes of such Holder in accordance with paragraph 5.4(a)(iii) of the
Purchase Contract Agreement.

          (c)  If a Holder of a Treasury PIES notifies the Purchase Contract
Agent as provided in paragraph 5.4(d)(i) of the Purchase Contract Agreement of
its intention to pay the Purchase Price in cash, but fails to make such payment
as required by paragraph 5.4(d)(ii) of the Purchase Contract Agreement, such
Holder shall be deemed to have elected to pay the Purchase Price in accordance
with paragraph 5.4(d)(iii) of the Purchase Contract Agreement.

          (d)  Prior to 3:00 p.m. (New York City time) on the fourth Business
Day immediately preceding the Purchase Contract Settlement Date, the Securities
Intermediary shall deliver to the Purchase Contract Agent a notice,
substantially in the form of Exhibit E hereto, stating the amount of cash that
it has received with respect to the Cash Settlement of Corporate PIES.

          (e)  Prior to 3:00 p.m. (New York City time) on the Business Day
immediately preceding the Purchase Contract Settlement Date, the Securities
Intermediary shall deliver to the Purchase Contract Agent a notice,
substantially in the form of Exhibit E hereto, stating the amount of cash that
it has received with respect to the Cash Settlement of Treasury PIES.

                                      12
<PAGE>

     Section 5.6    Early Settlement.
     -------------------------------

          Upon receipt by the Collateral Agent of a notice from the Purchase
Contract Agent that a Holder of Securities has elected to effect Early
Settlement of its obligations under the Purchase Contracts forming a part of
such Securities in accordance with the terms of the Purchase Contracts and
Section 5.9 of the Purchase Contract Agreement (which notice shall set forth the
number of such Purchase Contracts as to which such Holder has elected to effect
Early Settlement), and that the Purchase Contract Agent has received from such
Holder, and paid to the Company as confirmed in writing by the Company, the
related Early Settlement Amounts pursuant to the terms of the Purchase Contracts
and the Purchase Contract Agreement and that all conditions to such Early
Settlement have been satisfied, then the Collateral Agent shall release from the
Pledge, (1) Pledged Senior Notes, in the case of a Holder of Corporate PIES, or
(2) Pledged Treasury Securities, in the case of a Holder of Treasury PIES, with
a Value equal to the product of (i) the Stated Amount times (ii) the number of
Purchase Contracts as to which such Holder has elected to effect Early
Settlement, and shall instruct the Securities Intermediary to Transfer all such
Pledged Senior Notes or Pledged Treasury Securities, as the case may be, to the
Purchase Contract Agent for the benefit of such Holder, in each case free and
clear of the Pledge created hereby, for distribution to such Holder.

     Section 5.7    Application of Proceeds Settlement.
     -------------------------------------------------

          (a)  If a Holder of Corporate PIES has not elected to make an
effective Cash Settlement by notifying the Purchase Contract Agent in the manner
provided for in Section 5.4(a)(i) in the Purchase Contract Agreement, or has
given such notice but failed to deliver the required cash prior to 11:00 a.m.
(New York City time) on the fifth Business Day immediately preceding the
Purchase Contract Settlement Date, such Holder shall be deemed to have elected
to pay for the shares of Common Stock to be issued under such Purchase Contracts
from the Proceeds of the related Pledged Senior Notes.  In such event, the
Purchase Contract Agent, subject to its receipt of the notice required by
Section 5.5(d), will send a notice to the Collateral Agent directing it to
instruct the Securities Intermediary to Transfer the related Pledged Senior
Notes to the Remarketing Agent for Remarketing.  Upon receiving such Pledged
Senior Notes, the Remarketing Agent, pursuant to the terms of the Remarketing
Agreement, will use commercially reasonable efforts to remarket such Pledged
Senior Notes on such date at a price of 100.25% of the aggregate principal
amount of such Pledged Senior Notes.  The Remarketing Agent will deposit in the
Collateral Account the portion of the Proceeds of such remarketing equal to 100%
the aggregate principal amount of the remarketed Pledged Senior Notes and,
pursuant to the Remarketing Agreement, shall retain the portion of the Proceeds
equal to 0.25% of the aggregate principal amount of the remarketed Pledged
Senior Notes.  On the Purchase Contract Settlement Date, the Collateral Agent
shall instruct the Securities Intermediary to apply a portion of the Proceeds
from such Remarketing equal to the aggregate principal amount of such Pledged
Senior Notes to satisfy in full the obligations of such Holders of Corporate
PIES to pay the Purchase Price to purchase the shares of Common Stock under the
related Purchase Contracts.

          If the Remarketing Agent advises the Collateral Agent in writing that
there has been a Failed Remarketing, thus resulting in an event of default under
the Purchase Contract Agreement and hereunder, the Collateral Agent, for the
benefit of the Company shall, at the

                                      13
<PAGE>

written direction of the Company, dispose of the Pledged Senior Notes in
accordance with applicable law and satisfy in full, from such disposition, such
Holders' obligations to pay the Purchase Price for the shares of Common Stock.
Notwithstanding the foregoing, the Company shall pay any accrued and unpaid
interest on the Pledged Senior Notes in cash to the Purchase Contract Agent for
payment to such Holders of Corporate PIES of which such Pledged Senior Notes are
a part.

          (b)  If a Holder of Treasury PIES has not elected to make an
effective Cash Settlement by notifying the Purchase Contract Agent in the manner
provided for in Section 5.4(d)(i) of the Purchase Contract Agreement, or has
given such notice but failed to make such payment in the manner required by
Section 5.4(d)(ii) of the Purchase Contract Agreement, such Holder shall be
deemed to have elected to pay for the shares of Common Stock to be issued under
such Purchase Contracts from the Proceeds of the related Pledged Treasury
Securities.  Upon maturity of the Pledged Treasury Securities, the Securities
Intermediary, at the written direction of the Collateral Agent, shall invest the
Cash Proceeds of the maturing Pledged Treasury Securities in Permitted
Investments.  Without receiving any instruction from any such Holder of Treasury
PIES, the Collateral Agent shall apply the Proceeds of the related Pledged
Treasury Securities to satisfy in full such Holder's obligations to pay the
Purchase Price to purchase the shares of Common Stock under the related Purchase
Contracts.  In the event the sum of the Proceeds from the related Pledged
Treasury Securities and the investment earnings from the investment in Permitted
Investments exceeds the aggregate Purchase Price of the Purchase Contracts being
settled thereby, the Collateral Agent shall instruct the Securities Intermediary
to distribute such excess, when received, to the Purchase Contract Agent for the
benefit of such Holder for distribution to such Holder.

Section 6.  Voting Rights.
-------------------------

          The Purchase Contract Agent may exercise, or refrain from exercising,
any and all voting and other consensual rights pertaining to the Pledged Senior
Notes or any part thereof for any purpose not inconsistent with the terms of
this Agreement and in accordance with the terms of the Purchase Contract
Agreement; provided, that the Purchase Contract Agent shall not exercise or
shall not refrain from exercising such right, as the case may be, if, in the
judgment of the Purchase Contract Agent, such action would impair or otherwise
have a material adverse effect on the value of all or any of the Pledged Senior
Notes; and provided, further, that the Purchase Contract Agent shall give the
Company and the Collateral Agent at least five days' prior written notice of the
manner in which it intends to exercise, or its reasons for refraining from
exercising, any such right.  Upon receipt of any notices and other
communications in respect of any Pledged Senior Notes, including notice of any
meeting at which holders of the Senior Notes are entitled to vote or
solicitation of consents, waivers or proxies of holders of the Senior Notes, the
Collateral Agent shall use reasonable efforts to send promptly to the Purchase
Contract Agent such notice or communication, and as soon as reasonably
practicable after receipt of a written request therefor from the Purchase
Contract Agent, execute and deliver to the Purchase Contract Agent such proxies
and other instruments in respect of such Pledged Senior Notes (in form and
substance satisfactory to the Collateral Agent) as are prepared by the Purchase
Contract Agent with respect to the Pledged Senior Notes.

                                      14
<PAGE>

Section 7.  Rights and Remedies.
            -------------------

       Section 7.1    Rights and Remedies of the Collateral Agent
       ----------------------------------------------------------

          (a)  In addition to the rights and remedies specified in Section 5.5
hereof or otherwise available at law or in equity, after an event of default (as
specified in Section 7.1(b) below) hereunder, the Collateral Agent shall have
all of the rights and remedies with respect to the Collateral of a secured party
under the UCC (whether or not the UCC is in effect in the jurisdiction where the
rights and remedies are asserted) and the TRADES Regulations and such additional
rights and remedies to which a secured party is entitled under the laws in
effect in any jurisdiction where any rights and remedies hereunder may be
asserted.  Without limiting the generality of the foregoing, such remedies may
include, to the extent permitted by applicable law, (i) retention of the Pledged
Senior Notes in full satisfaction of the Holders' obligations under the Purchase
Contracts or (ii) sale of the Pledged Senior Notes in one or more public or
private sales.

          (b)  Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, in the event the Collateral Agent is unable
to make payments to the Company on account of principal payments of any Pledged
Treasury Securities as provided in Section 3 hereof, in satisfaction of the
Obligations of the Holder of the Securities of which such Pledged Treasury
Securities are a part under the related Purchase Contracts, the inability to
make such payments shall constitute an event of default hereunder and the
Collateral Agent shall have and may exercise, with reference to such Pledged
Treasury Securities and such Obligations of such Holder, any and all of the
rights and remedies available to a secured party under the UCC and the TRADES
Regulations after default by a debtor, and as otherwise granted herein or under
any other law.

          (c)  Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, the Collateral Agent is hereby irrevocably
authorized to receive and collect all payments of (i) the principal amount of
the Pledged Senior Notes and (ii) the principal amount of the Pledged Treasury
Securities, subject, in each case, to the provisions of Section 3 hereof, and as
otherwise granted herein.

          (d)  The Purchase Contract Agent and each Holder of Securities agrees
that, from time to time, upon the written request of the Collateral Agent, the
Purchase Contract Agent or such Holder shall execute and deliver such further
documents and do such other acts and things as the Collateral Agent may
reasonably request in order to maintain the Pledge, and the perfection and
priority thereof, and to confirm the rights of the Collateral Agent hereunder.
The Purchase Contract Agent shall have no liability to any Holder for executing
any documents or taking any such acts requested by the Collateral Agent
hereunder, except for liability for its own negligent acts, its own negligent
failure to act or its own willful misconduct.

     Section 7.2    Substitutions.
     ----------------------------

          Whenever a Holder has the right to substitute Treasury Securities,
Senior Notes or security entitlements to either of them for financial assets
held in the Collateral Account, such substitution shall not constitute a
novation of the security interest created hereby.

                                      15
<PAGE>

Section 8.  Representations and Warranties; Covenants.
            -----------------------------------------

     Section 8.1    Representations and Warranties.
     ---------------------------------------------

          Each Holder from time to time, acting through the Purchase Contract
Agent as attorney-in-fact (it being understood that the Purchase Contract Agent
shall not be liable for any representation or warranty made by or on behalf of a
Holder), hereby represents and warrants to the Collateral Agent (with respect to
its interest in the Collateral), which representations and warranties shall be
deemed repeated on each day a Holder Transfers Collateral that:

          (1)  such Holder has the power to grant a security interest in and
     lien on the Collateral;

          (2)  such Holder is the sole beneficial owner of the Collateral and,
     in the case of Collateral delivered in physical form, is the sole holder of
     such Collateral and is the sole beneficial owner of, or has the right to
     Transfer, the Collateral it Transfers to the Securities Intermediary for
     credit to the Collateral Account, free and clear of any security interest,
     lien, encumbrance, call, liability to pay money or other restriction other
     than the security interest and lien granted under Section 2 hereof;

          (3)  upon the Transfer of the Collateral to the Securities
     Intermediary for credit to the Collateral Account, the Collateral Agent,
     for the benefit of the Company, will have a valid and perfected first
     priority security interest therein (assuming that any central clearing
     operation or any securities intermediary or other entity not within the
     control of the Holder involved in the Transfer of the Collateral, including
     the Collateral Agent and the Securities Intermediary, gives the notices and
     takes the action required of it hereunder and under applicable law for
     perfection of that interest and assuming the establishment and exercise of
     control pursuant to Section 4 hereof); and

          (4)  the execution and performance by the Holder of its obligations
     under this Agreement will not result in the creation of any security
     interest, lien or other encumbrance on the Collateral other than the
     security interest and lien granted under Section 2 hereof or violate any
     provision of any existing law or regulation applicable to it or of any
     mortgage, charge, pledge, indenture, contract or undertaking to which it is
     a party or which is binding on it or any of its assets.

     Section 8.2    Covenants.
     ------------------------

          The Purchase Contract Agent and the Holders from time to time, acting
through the Purchase Contract Agent as their attorney-in-fact (it being
understood that the Purchase Contract Agent shall not be liable for any covenant
made by or on behalf of a Holder), hereby covenant to the Collateral Agent that
for so long as the Collateral remains subject to the Pledge:

          (1)  neither the Purchase Contract Agent nor such Holders will create
     or purport to create or allow to subsist any mortgage, charge, lien, pledge
     or any other security interest whatsoever over the Collateral or any part
     of it other than pursuant to this Agreement; and

                                      16
<PAGE>

          (2)  neither the Purchase Contract Agent nor such Holders will sell
     or otherwise dispose (or attempt to dispose) of the Collateral or any part
     of it except for the beneficial interest therein, subject to the Pledge
     hereunder, transferred in connection with the Transfer of the Securities.

Section 9.  The Collateral Agent and the Securities Intermediary.
----------------------------------------------------------------

          It is hereby agreed as follows:

     Section 9.1    Appointment, Powers and Immunities.
     -------------------------------------------------

          The Collateral Agent and the Securities Intermediary shall each act as
agent for the Company hereunder with such powers as are specifically vested in
the Collateral Agent or the Securities Intermediary, as the case may be, by the
terms of this Agreement, together with such other powers as are reasonably
incidental thereto.  The Collateral Agent and the Securities Intermediary shall:

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

          (2)  not be responsible for any recitals contained in this Agreement,
     or in any certificate or other document referred to or provided for in, or
     received by it under, this Agreement, the Securities or the Purchase
     Contract Agreement, or for the value, validity, effectiveness, genuineness,
     enforceability or sufficiency of this Agreement (other than as against the
     Collateral Agent or the Securities Intermediary, as the case may be), the
     Securities or the Purchase Contract Agreement or any other document
     referred to or provided for herein or therein or for any failure by the
     Company or any other Person (except the Collateral Agent or the Securities
     Intermediary, as the case may be) to perform any of its obligations
     hereunder or thereunder or for the perfection, priority or, except, in the
     case of the Collateral Agent, as expressly required hereby, maintenance of
     any security interest created hereunder;

          (3)  not be required to initiate or conduct any litigation or
     collection proceedings hereunder (except, in the case of the Collateral
     Agent, pursuant to directions furnished under Section 9.2 hereof, subject
     to Section 9.6 hereof);

          (4)  not be responsible for any action taken or omitted to be taken
     by it hereunder or under any other document or instrument referred to or
     provided for herein or in connection herewith or therewith, except for its
     own negligence or willful misconduct; and

          (5)  not be required to advise any party as to selling or retaining,
     or taking or refraining from taking any action with respect to, any
     securities or other property deposited hereunder.

                                      17
<PAGE>

Subject to the foregoing, during the term of this Agreement, the Collateral
Agent shall take all reasonable action in connection with the safekeeping and
preservation of the Collateral hereunder.

          No provision of this Agreement shall require the Collateral Agent to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder.  In no event shall the Collateral
Agent or the Securities Intermediary be liable for any amount in excess of the
Value of the Collateral.  Notwithstanding the foregoing, each of the Collateral
Agent and the Securities Intermediary in its individual capacity hereby waives
any right of setoff, bankers' lien, liens or perfection rights as securities
intermediary or any counterclaim with respect to any of the Collateral.

     Section 9.2    Instructions of the Company.
     ------------------------------------------

          The Company shall have the right, by one or more instruments in
writing executed and delivered to the Collateral Agent, to direct the time,
method and place of conducting any proceeding for the realization of any right
or remedy available to the Collateral Agent, or of exercising any power
conferred on the Collateral Agent, or to direct the taking or refraining from
taking of any action authorized by this Agreement; provided, however, that (i)
such direction shall not conflict with the provisions of any law or of this
Agreement and (ii) the Collateral Agent shall be adequately indemnified as
provided herein.  Nothing contained in this Section 9.2 shall impair the right
of the Collateral Agent in its discretion to take any action or omit to take any
action which it deems proper and which is not inconsistent with such direction.

     Section 9.3    Reliance by Collateral Agent and Securities Intermediary.
     -----------------------------------------------------------------------

          Each of the Securities Intermediary and the Collateral Agent shall be
entitled to rely upon any certification, order, judgment, opinion, notice or
other communication (including, without limitation, any thereof by telephone,
telecopy, telex or facsimile) believed by it to be genuine and correct and to
have been signed or sent by or on behalf of the proper Person or Persons
(without being required to determine the correctness of any fact stated therein)
and upon advice and statements of legal counsel and other experts selected by
the Collateral Agent or the Securities Intermediary, as the case may be.  As to
any matters not expressly provided for by this Agreement, the Collateral Agent
and the Securities Intermediary shall in all cases be fully protected in acting,
or in refraining from acting, hereunder in accordance with instructions given by
the Company in accordance with this Agreement.

     Section 9.4    Rights in Other Capacities.
     -----------------------------------------

          The Collateral Agent and the Securities Intermediary and their
affiliates may (without having to account therefor to the Company) accept
deposits from, lend money to, make their investments in and generally engage in
any kind of banking, trust or other business with the Purchase Contract Agent or
the Securities Intermediary, as the case may be, any other Person interested
herein and any Holder of Securities (and any of their respective subsidiaries or
affiliates) as if it were not acting as the Collateral Agent or the Securities
Intermediary, as the case may be, and the Collateral Agent, the Securities
Intermediary and their affiliates may accept

                                      18
<PAGE>

fees and other consideration from the Purchase Contract Agent and any Holder of
Securities without having to account for the same to the Company; provided that
each of the Securities Intermediary and the Collateral Agent covenants and
agrees with the Company that it shall not accept, receive or permit there to be
created in favor of itself and shall take no affirmative action to permit there
to be created in favor of any other Person, any security interest, lien or other
encumbrance of any kind in or upon the Collateral other than the lien created by
the Pledge.

     Section 9.5    Non-Reliance on Collateral Agent and Securities
     --------------------------------------------------------------
Intermediary.
------------

          Neither the Securities Intermediary nor the Collateral Agent shall be
required to keep itself informed as to the performance or observance by the
Purchase Contract Agent or any Holder of Securities of this Agreement, the
Purchase Contract Agreement, the Securities or any other document referred to or
provided for herein or therein or to inspect the properties or books of the
Purchase Contract Agent or any Holder of Securities.  Neither the Collateral
Agent nor the Securities Intermediary shall have any duty or responsibility to
provide the Company with any credit or other information concerning the affairs,
financial condition or business of the Purchase Contract Agent or any Holder of
Securities (or any of their respective affiliates) that may come into the
possession of the Collateral Agent or the Securities Intermediary or any of
their respective affiliates.

     Section 9.6    Compensation and Indemnity.
     -----------------------------------------

          The Company agrees to:

          (1)  pay the Collateral Agent and the Securities Intermediary from
     time to time such compensation as shall be agreed in writing between the
     Company and the Collateral Agent or the Securities Intermediary, as the
     case may be, for all services rendered by them hereunder; and

          (2)  indemnify the Collateral Agent and the Securities Intermediary
     for, and to hold each of them harmless from and against, any loss,
     liability or reasonable out-of-pocket expense incurred without negligence,
     willful misconduct or bad faith on its part, arising out of or in
     connection with the acceptance or administration of its powers and duties
     under this Agreement, including the reasonable costs and expenses
     (including reasonable fees and expenses of counsel) of defending itself
     against any claim or liability in connection with the exercise or
     performance of such powers and duties.

     Section 9.7    Failure to Act.
     -----------------------------

          In the event of any ambiguity in the provisions of this Agreement or
any dispute between or conflicting claims by or among the parties hereto or any
other Person with respect to any funds or property deposited hereunder, the
Collateral Agent and the Securities Intermediary shall be entitled, after prompt
notice to the Company and the Purchase Contract Agent, at its sole option, to
refuse to comply with any and all claims, demands or instructions with respect
to such property or funds so long as such dispute or conflict shall continue,
and the Collateral Agent and the Securities Intermediary shall not be or become
liable in any way to any of the parties hereto

                                      19
<PAGE>

for its failure or refusal to comply with such conflicting claims, demands or
instructions. The Collateral Agent and the Securities Intermediary shall be
entitled to refuse to act until either:

          (1)  such conflicting or adverse claims or demands shall have been
     finally determined by a court of competent jurisdiction or settled by
     agreement between the conflicting parties as evidenced in a writing
     satisfactory to the Collateral Agent or the Securities Intermediary; or

          (2)  the Collateral Agent or the Securities Intermediary shall have
     received security or an indemnity satisfactory to it sufficient to save it
     harmless from and against any and all loss, liability or reasonable out-of-
     pocket expense which it may incur by reason of its acting.

The Collateral Agent and the Securities Intermediary may in addition elect to
commence an interpleader action or seek other judicial relief or orders as the
Collateral Agent or the Securities Intermediary may deem necessary.
Notwithstanding anything contained herein to the contrary, neither the
Collateral Agent nor the Securities Intermediary shall be required to take any
action that is in its opinion contrary to law or to the terms of this Agreement,
or which would in its opinion subject it or any of its officers, employees or
directors to liability.

     Section 9.8    Resignation of Collateral Agent and Securities Intermediary.
     --------------------------------------------------------------------------

          (a)  Subject to the appointment and acceptance of a successor
Collateral Agent as provided below:

          (1)  the Collateral Agent may resign at any time by giving notice
     thereof to the Company and the Purchase Contract Agent as attorney-in-fact
     for the Holders of Securities;

          (2)  the Collateral Agent may be removed at any time by the Company;
     and

          (3)  if the Collateral Agent fails to perform any of its material
     obligations hereunder in any material respect for a period of not less than
     20 days after receiving written notice of such failure by the Purchase
     Contract Agent and such failure shall be continuing, the Collateral Agent
     may be removed by the Purchase Contract Agent.

The Purchase Contract Agent shall promptly notify the Company of any removal of
the Collateral Agent pursuant to clause (3) of the immediately preceding
sentence.  Upon any such resignation or removal, the Company shall have the
right to appoint a successor Collateral Agent.  If no successor Collateral Agent
shall have been so appointed and shall have accepted such appointment within 30
days after the retiring Collateral Agent's giving of notice of resignation or
such removal, then the retiring Collateral Agent may petition any court of
competent jurisdiction for the appointment of a successor Collateral Agent.  The
Collateral Agent shall be a bank which has an office in New York, New York with
a combined capital and surplus of at least $50,000,000 and shall not be the
Purchase Contract Agent or any of its affiliates.  Upon the acceptance of any
appointment as Collateral Agent hereunder by a successor Collateral Agent, such
successor Collateral Agent shall thereupon succeed to and become vested with all
the

                                      20
<PAGE>

rights, powers, privileges and duties of the retiring Collateral Agent, and the
retiring Collateral Agent shall take all appropriate action to transfer any
money and property held by it hereunder (including the Collateral) to such
successor Collateral Agent. The retiring Collateral Agent shall, upon such
succession, be discharged from its duties and obligations as Collateral Agent
hereunder. After any retiring Collateral Agent's resignation hereunder as
Collateral Agent, the provisions of this Section 9 shall continue in effect for
its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as the Collateral Agent. Any resignation or removal of the
Collateral Agent hereunder shall be deemed for all purposes of this Agreement as
the simultaneous resignation or removal, as the case may be, of the Securities
Intermediary.

          (b)  Subject to the appointment and acceptance of a successor
Securities Intermediary as provided below:

          (1)  the Securities Intermediary may resign at any time by giving
     notice thereof to the Company and the Purchase Contract Agent as attorney-
     in-fact for the Holders of Securities;

          (2)  the Securities Intermediary may be removed at any time by the
     Company; and

          (3)  if the Securities Intermediary fails to perform any of its
     material obligations hereunder in any material respect for a period of not
     less than 20 days after receiving written notice of such failure by the
     Purchase Contract Agent and such failure shall be continuing, the
     Securities Intermediary may be removed by the Purchase Contract Agent.

The Purchase Contract Agent shall promptly notify the Company of any removal of
the Securities Intermediary pursuant to clause (3) of the immediately preceding
sentence.  Upon any such resignation or removal, the Company shall have the
right to appoint a successor Securities Intermediary.  If no successor
Securities Intermediary shall have been so appointed and shall have accepted
such appointment within 30 days after the retiring Securities Intermediary's
giving of notice of resignation or such removal, then the retiring Securities
Intermediary may petition any court of competent jurisdiction for the
appointment of a successor Securities Intermediary.  The Securities Intermediary
shall be a bank which has an office in New York, New York with a combined
capital and surplus of at least $50,000,000 and shall not be the Purchase
Contract Agent or any of its affiliates.  Upon the acceptance of any appointment
as Securities Intermediary hereunder by a successor Securities Intermediary,
such successor Securities Intermediary shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring
Securities Intermediary, and the retiring Securities Intermediary shall take all
appropriate action to transfer any money and property held by it hereunder
(including the Collateral) to such successor Securities Intermediary.  The
retiring Securities Intermediary shall, upon such succession, be discharged from
its duties and obligations as Securities Intermediary hereunder.  After any
retiring Securities Intermediary's resignation hereunder as Securities
Intermediary, the provisions of this Section 9 shall continue in effect for its
benefit in respect of any actions taken or omitted to be taken by it while it
was acting as the Securities Intermediary.

                                      21
<PAGE>

     Section 9.9    Right to Appoint Agent or Advisor.
     ------------------------------------------------

          The Collateral Agent shall have the right to appoint agents or
advisors in connection with any of its duties hereunder, and the Collateral
Agent shall not be liable for any action taken or omitted by, or in reliance
upon the advice of, such agents or advisors selected in good faith.  The
appointment of agents pursuant to this Section 9.9 shall be subject to prior
consent of the Company, which consent shall not be unreasonably withheld.

     Section 9.10    Survival.
     ------------------------

          The provisions of this Section 9 shall survive termination of this
Agreement and the resignation or removal of the Collateral Agent or the
Securities Intermediary.

     Section 9.11    Exculpation.
     ---------------------------

          Anything contained in this Agreement to the contrary notwithstanding,
in no event shall the Collateral Agent or the Securities Intermediary or their
officers, directors, employees or agents be liable under this Agreement to any
third party for indirect, special, punitive or consequential loss or damage of
any kind whatsoever, including lost profits, whether or not the likelihood of
such loss or damage was known to the Collateral Agent or the Securities
Intermediary, or any of them, incurred without any act or deed that is found to
be attributable to gross negligence or willful misconduct on the part of the
Collateral Agent or the Securities Intermediary.

Section 10.  Amendment.
             ---------

     Section 10.1    Amendment Without Consent of Holders.
     ----------------------------------------------------

          Without the consent of any Holders, the Company (when authorized by a
Board Resolution), the Collateral Agent, the Securities Intermediary and the
Purchase Contract Agent, at any time and from time to time, may amend this
Agreement, in form satisfactory to the Company, the Collateral Agent, the
Securities Intermediary and the Purchase Contract Agent, to:

          (1)  evidence the succession of another Person to the Company, and
     the assumption to by any such successor of the covenants of the Company;

          (2)  evidence and provide for the acceptance of appointment hereunder
     by a successor Collateral Agent, Securities Intermediary or Purchase
     Contract Agent;

          (3)  add to the covenants of the Company for the benefit of the
     Holders, or to surrender any right or power herein conferred upon the
     Company, provided such covenants or such surrender do not adversely affect
     the validity, perfection or priority of the Pledge created hereunder; or

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

                                      22
<PAGE>

     Section 10.2    Amendment with Consent of Holders.
     -------------------------------------------------

          With the consent of the Holders of not less than a majority of the
Purchase Contracts at the time outstanding, by Act of said Holders delivered to
the Company, the Purchase Contract Agent, the Securities Intermediary and the
Collateral Agent, the Company, when duly authorized by a Board Resolution, the
Purchase Contract Agent, the Securities Intermediary and the Collateral Agent
may amend this Agreement for the purpose of modifying in any manner the
provisions of this Agreement or the rights of the Holders in respect of the
Securities; provided, however, that no such supplemental agreement shall,
without the unanimous consent of the Holders of each Outstanding Security
adversely affected thereby,

          (1)  change the amount or type of Collateral underlying a Security,
     impair the right of the Holder of any Security to receive distributions on
     the underlying Collateral or otherwise adversely affect the Holder's rights
     in or to such Collateral;

          (2)  otherwise effect any action that would require the consent of
     the Holder of each Outstanding Security affected thereby pursuant to the
     Purchase Contract Agreement if such action were effected by an agreement
     supplemental thereto; or

          (3)  reduce the percentage of Purchase Contracts the consent of whose
     Holders is required for any such amendment;

provided that if any amendment or proposal referred to above would adversely
affect only the Corporate PIES or only the Treasury PIES, then only the affected
class of Holder as of the record date for the Holders entitled to vote thereon
will be entitled to vote on such amendment or proposal, and such amendment or
proposal shall not be effective except with the consent of Holders of not less
than a majority of such class; provided, further, that the unanimous consent of
the Holders of each outstanding Purchase Contract of such class affected thereby
shall be required to approve any amendment or proposal specified in clauses (1)
through (3) above.

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

     Section 10.3    Execution of Amendments.
     ---------------------------------------

          In executing any amendment permitted by this Section, the Collateral
Agent, the Securities Intermediary and the Purchase Contract Agent shall be
entitled to receive and (subject to Section 7.1 of the Purchase Contract
Agreement with respect to the Purchase Contract Agent) shall be fully protected
in relying upon, an Opinion of Counsel stating that the execution of such
amendment is authorized or permitted by this Agreement and that all conditions
precedent, if any, to the execution and delivery of such amendment have been
satisfied.

     Section 10.4    Effect of Amendments.
     ------------------------------------

          Upon the execution of any amendment under this Section, this Agreement
shall be modified in accordance therewith, and such amendment shall form a part
of this Agreement for all purposes; and every Holder of Certificates theretofore
or thereafter authenticated, executed on

                                      23
<PAGE>

behalf of the Holders and delivered under the Purchase Contract Agreement shall
be bound thereby.

     Section 10.5    Reference to Amendments.
     ---------------------------------------

          Certificates authenticated, executed on behalf of the Holders and
delivered after the execution of any amendment pursuant to this Section may, and
shall if required by the Collateral Agent or the Purchase Contract Agent, bear a
notation in form approved by the Purchase Contract Agent and the Collateral
Agent as to any matter provided for in such amendment.  If the Company shall so
determine, new Security Certificates so modified as to conform, in the opinion
of the Collateral Agent, the Purchase Contract Agent and the Company, to any
such amendment may be prepared and executed by the Company and authenticated,
executed on behalf of the Holders and delivered by the Purchase Contract Agent
in accordance with the Purchase Contract Agreement in exchange for Outstanding
Security Certificates.

Section 11.  Miscellaneous.
             -------------

     Section 11.1    No Waiver.
     -------------------------

          No failure on the part of the Collateral Agent or any of its agents to
exercise, and no course of dealing with respect to, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise by the Collateral Agent or any of its
agents of any right, power or remedy hereunder preclude any other or further
exercise thereof or the exercise of any other right, power or remedy.  The
remedies herein are cumulative and are not exclusive of any remedies provided by
law.

     Section 11.2    Governing Law.
     -----------------------------

          This agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.

          The Company, the Collateral Agent, the Securities Intermediary and the
Holders from time to time of the Securities, acting through the Purchase
Contract Agent as their attorney-in-fact, hereby submit to the nonexclusive
jurisdiction of the United States District Court for the Southern District of
New York and of any New York state court sitting in New York City for the
purposes of all legal proceedings arising out of or relating to this Agreement
or the transactions contemplated hereby.  The Company, the Collateral Agent, the
Securities Intermediary and the Holders from time to time of the Securities,
acting through the Purchase Contract Agent as their attorney-in-fact,
irrevocably waive, to the fullest extent permitted by applicable law, any
objection which they may now or hereafter have to the laying of the venue of any
such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum.

     Section 11.3    Notices.
     -----------------------

          All notices, requests, consents and other communications provided for
herein (including, without limitation, any modifications of, or waivers or
consents under, this Agreement) shall be given or made in writing (including,
without limitation, by telecopy)

                                      24
<PAGE>

delivered to the intended recipient at the "Address for Notices" specified below
its name on the signature pages hereof or, as to any party, at such other
address as shall be designated by such party in a notice to the other parties.
Except as otherwise provided in this Agreement, all such communications shall be
deemed to have been duly given when transmitted by telecopier or personally
delivered or, in the case of a mailed notice, upon receipt, in each case given
or addressed as aforesaid.

     Section 11.4    Successors and Assigns.
     --------------------------------------

          This Agreement shall be binding upon and inure to the benefit of the
respective successors and assigns of the Company, the Collateral Agent, the
Securities Intermediary and the Purchase Contract Agent, and the Holders from
time to time of the Securities, by their acceptance of the same, shall be deemed
to have agreed to be bound by the provisions hereof and to have ratified the
agreements of, and the grant of the Pledge hereunder by, the Purchase Contract
Agent.

     Section 11.5    Counterparts.
     ----------------------------

          This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument, and any of
the parties hereto may execute this Agreement by signing any such counterpart.

     Section 11.6    Severability.
     ----------------------------

          If any provision hereof is invalid and unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other
provisions hereof shall remain in full force and effect in such jurisdiction and
shall be liberally construed in order to carry out the intentions of the parties
hereto as nearly as may be possible and (ii) the invalidity or unenforceability
of any provision hereof in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction.

     Section 11.7    Expenses, etc.
     -----------------------------

          The Company agrees to reimburse the Collateral Agent and the
Securities Intermediary for:

          (1)  all reasonable costs and expenses of the Collateral Agent and
     the Securities Intermediary (including, without limitation, the reasonable
     fees and expenses of counsel to the Collateral Agent and the Securities
     Intermediary), in connection with (i) the negotiation, preparation,
     execution and delivery or performance of this Agreement and (ii) any
     modification, supplement or waiver of any of the terms of this Agreement;

          (2)  all reasonable costs and expenses of the Collateral Agent and
     the Securities Intermediary (including, without limitation, reasonable fees
     and expenses of counsel) in connection with (i) any enforcement or
     proceedings resulting or incurred in connection with causing any Holder of
     Securities to satisfy its obligations under the Purchase Contracts forming
     a part of the Securities and (ii) the enforcement of this Section 11.7; and

                                      25
<PAGE>

          (3)  all transfer, stamp, documentary or other similar taxes,
     assessments or charges levied by any governmental or revenue authority in
     respect of this Agreement or any other document referred to herein and all
     costs, expenses, taxes, assessments and other charges incurred in
     connection with any filing, registration, recording or perfection of any
     security interest contemplated hereby.

     Section 11.8    Security Interest Absolute.
     ------------------------------------------

          All rights of the Collateral Agent and security interests hereunder,
and all obligations of the Holders from time to time hereunder, shall be
absolute and unconditional irrespective of:

          (1)  any lack of validity or enforceability of any provision of the
     Purchase Contracts or the Securities or any other agreement or instrument
     relating thereto;

          (2)  any change in the time, manner or place of payment of, or any
     other term of, or any increase in the amount of, all or any of the
     obligations of Holders of the Securities under the related Purchase
     Contracts, or any other amendment or waiver of any term of, or any consent
     to any departure from any requirement of, the Purchase Contract Agreement
     or any Purchase Contract or any other agreement or instrument relating
     thereto; or

          (3)  any other circumstance which might otherwise constitute a
     defense available to, or discharge of, a borrower, a guarantor or a
     pledgor.

                                      26
<PAGE>

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

<TABLE>
<S>                                                     <C>
DOMINION RESOURCES, INC.                                THE CHASE MANHATTAN BANK, not individually
                                                        but solely as Purchase Contract Agent and as
                                                        attorney-in-fact of the Holders from time to
                                                        time of the Securities
By:____________________________
Name:                                                   By:__________________________________________
Title:                                                  Name:
                                                        Title:
Address for Notices:
     120 Tredegar Street                                Address for Notices:
     Richmond, Virginia 23219                               450 West 33rd Street, 15/th/ Floor,
                                                            New York, New York  10001
Attention:  Treasurer
Telecopy:  (804) 819-2211                               Attention:  Capital Markets Fiduciary Services
                                                        Telecopy:  (212) 946-8159/8160

BANK ONE TRUST COMPANY, N.A.,                           BANK ONE TRUST COMPANY, N.A.,
as Collateral Agent                                     as Securities Intermediary

By:_________________________                            By:_________________________________________
Name:                                                   Name:
Title:                                                  Title:

Address for Notices:                                    Address for Notices:

153 West 51/st/ Street                                  153 West 51/st/ Street
New York, New York  10019                               New York, New York  10019

Attention:  Corporate Trust Administration              Attention:  Corporate Trust Administration
Telecopy:  (212) 373-1383                               Telecopy:  (212) 373-1383
</TABLE>
<PAGE>

                                                                       EXHIBIT A

                                  INSTRUCTION

                         FROM PURCHASE CONTRACT AGENT
                              TO COLLATERAL AGENT
                       (Establishment of Treasury PIES)

BANK ONE TRUST COMPANY, N.A., as Collateral Agent

153 West 51/st/ Street
New York, New York 10019

Attention: Corporate Trust Administration
Telecopy:  (212) 373-1383

          Re:  PIES of Dominion Resources, Inc. (the "Company")

     Please refer to the Pledge Agreement dated as of October 12, 2000 (the
"Pledge Agreement"), among the Company, you, as Collateral Agent, Bank One Trust
Company, N.A., as Securities Intermediary, and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the holders of PIES from time to
time.  Capitalized terms used herein but not defined shall have the meaning set
forth in the Pledge Agreement.

     We hereby notify you in accordance with Section 5.2 of the Pledge Agreement
that the holder of securities named below (the "Holder") has elected to
substitute $__________ Value of Treasury Securities in exchange for an equal
Value of Pledged Senior Notes and has delivered to the undersigned a notice
stating that the Holder has Transferred such Treasury Securities to the
Securities Intermediary, for credit to the Collateral Account.

     We hereby request that you instruct the Securities Intermediary, upon
confirmation that such Treasury Securities have been credited to the Collateral
Account, to release to the undersigned an equal Value of Pledged Senior Notes in
accordance with Section 5.2 of the Pledge Agreement.

                                        THE CHASE MANHATTAN BANK,
                                        as Purchase Contract Agent

Date: _______________                   By:______________________________
                                           Name:
                                           Title:
<PAGE>

Please print name and address of Holder electing to substitute Treasury
Securities or security entitlements thereto for the Pledged Senior Notes:

_______________________                         _____________________________
         Name                                   Social Security or other
                                                Taxpayer Identification Number,
                                                if any
________________________
       Address
_______________________
_______________________

                                      A-2
<PAGE>

                                                                       EXHIBIT B

                                  INSTRUCTION
                             FROM COLLATERAL AGENT
                          TO SECURITIES INTERMEDIARY
                       (Establishment of Treasury PIES)

BANK ONE TRUST COMPANY, N.A., as Securities Intermediary
153 West 51/st/ Street
New York, New York 10019

Attention: Corporate Trust Administration
Telecopy:  (212) 373-1383

          Re:  PIES of Dominion Resources, Inc. (the "Company")

               Securities Account No. 205024-000 entitled "BANK ONE TRUST
               COMPANY, N.A., as Collateral Agent, Securities Account (Dominion
               Resources, Inc.)" (the "Collateral Account")

     Please refer to the Pledge Agreement, dated as of October 12, 2000 (the
"Pledge Agreement"), among the Company, you, as Securities Intermediary, The
Chase Manhattan Bank, as Purchase Contract Agent and as attorney-in-fact for the
holders of PIES from time to time, and the undersigned, as Collateral Agent.
Capitalized terms used herein but not defined shall have the meanings set forth
in the Pledge Agreement.

     When you have confirmed that $__________ Value of Treasury Securities has
been credited to the Collateral Account by or for the benefit of _________, as
Holder of PIES (the "Holder"), you are hereby instructed to release from the
Collateral Account an equal Value of Senior Notes by Transfer to the Purchase
Contract Agent.

                              BANK ONE TRUST COMPANY, N.A.,
                              as Collateral Agent

Date: _______________         By:______________________________
                                 Name:
                                 Title:
<PAGE>

Please print name and address of Holder:

_______________________                         _____________________________
         Name                                   Social Security or other
                                                Taxpayer Identification Number,
                                                if any
________________________
       Address
_______________________
_______________________

                                      B-2
<PAGE>

                                                                       EXHIBIT C

                                  INSTRUCTION
                         FROM PURCHASE CONTRACT AGENT
                              TO COLLATERAL AGENT
                      (Reestablishment of Corporate PIES)

BANK ONE TRUST COMPANY, N.A., as Collateral Agent
153 West 51/st/ Street
New York, New York 10019

Attention: Corporate Trust Administration
Telecopy:  (212) 373-1383

          Re:  PIES of Dominion Resources, Inc. (the "Company")

     Please refer to the Pledge Agreement, dated as of October 12, 2000 (the
"Pledge Agreement"), among the Company, you, as Collateral Agent, Bank One Trust
Company, N.A., as Securities Intermediary, and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the holders of PIES from time to
time.  Capitalized terms used herein but not defined shall have the meanings set
forth in the Pledge Agreement.

     We hereby notify you in accordance with Section 5.3(a) of the Pledge
Agreement that the holder of securities listed below (the "Holder") has elected
to substitute $__________ Value of Senior Notes or security entitlements thereto
in exchange for $__________ Value of Pledged Treasury Securities and has
delivered to the undersigned a notice stating that the Holder has Transferred
such Senior Notes or security entitlements thereto to the Securities
Intermediary, for credit to the Collateral Account.

     We hereby request that you instruct the Securities Intermediary, upon
confirmation that such Senior Notes or security entitlements thereto have been
credited to the Collateral Account, to release to the undersigned $__________
Value of Treasury Securities or security entitlements thereto related to _____
Treasury PIES of such Holder in accordance with Section 5.3(a) of the Pledge
Agreement.

                                        THE CHASE MANHATTAN BANK,
                                        as Purchase Contract Agent

Date: _______________                   By:______________________________
                                           Name:
                                           Title:
<PAGE>

Please print name and address of Holder electing to substitute Pledged Senior
Notes or security entitlements thereto for Pledged Treasury Securities:

_______________________                          ________________________
        Name                                     Social Security or other
                                                 Taxpayer Identification Number,
                                                 if any
________________________
       Address
_______________________
_______________________

                                      C-2
<PAGE>

                                                                       EXHIBIT D

                                  INSTRUCTION
                             FROM COLLATERAL AGENT
                          TO SECURITIES INTERMEDIARY
                      (Reestablishment of Corporate PIES)

BANK ONE TRUST COMPANY, N.A., as Securities Intermediary
153 West 51/st/ Street
New York, New York 10019

Attention: Corporate Trust Administration
Telecopy:  (212) 373-1383

          Re:  PIES of Dominion Resources, Inc. (the "Company")

               Securities Account No. 205024-000 entitled "BANK ONE TRUST
               COMPANY, N.A., as Collateral Agent, Securities Account (Dominion
               Resources, Inc.) (the "Collateral Account")

     Please refer to the Pledge Agreement, dated as of October 12, 2000 (the
"Pledge Agreement"), among the Company, you, as Securities Intermediary, The
Chase Manhattan Bank, as Purchase Contract Agent and as attorney-in-fact for the
holders of PIES from time to time, and the undersigned, as Collateral Agent.
Capitalized terms used herein but not defined shall have the meanings set forth
in the Pledge Agreement.

     When you have confirmed that $_________ Value of Senior Notes or security
entitlements thereto has been credited to the Collateral Account by or for the
benefit of _________, as Holder of PIES (the "Holder"), you are hereby
instructed to release from the Collateral Account $__________ Value of Treasury
Securities or security entitlements thereto by Transfer to the Purchase Contract
Agent.

                                        BANK ONE TRUST COMPANY, N.A.,
                                        as Collateral Agent

Date: _______________                   By:______________________________
                                           Name:
                                           Title:
<PAGE>

Please print name and address of Holder:

_______________________                          _____________________________
         Name                                    Social Security or other
                                                 Taxpayer Identification Number,
                                                 if any
________________________
        Address
_______________________
_______________________

                                      D-2
<PAGE>

                                                                       EXHIBIT E

                           NOTICE OF CASH SETTLEMENT
                         FROM SECURITIES INTERMEDIARY
                          TO PURCHASE CONTRACT AGENT
                           (Cash Settlement Amounts)

The Chase Manhattan Bank, as Purchase Contract Agent
450 West 33/rd/ Street, 15/th/ Floor
New York, New York 10019

Telecopier No.:  (212) 946-8159/8160
Attention:  Capital Markets Fiduciary Services

          Re:  PIES of Dominion Resources, Inc. (the "Company")

     Please refer to the Pledge Agreement, dated as of October 12, 2000 (the
"Pledge Agreement"), among you, the Company, Bank One Trust Company, N.A., as
Collateral Agent and the undersigned, as Securities Intermediary.  Unless
otherwise defined herein, terms defined in the Pledge Agreement are used herein
as defined therein

     In accordance with Section [5.5(d)] [5.5(e)] of the Pledge Agreement, we
hereby notify you that as of 11:00 a.m., [on the fifth Business Day immediately
preceding the Purchase Contract Settlement Date] [on the Business Day
immediately preceding the Purchase Contract Settlement Date], we have received
[$_____ in immediately available funds paid in an aggregate amount equal to the
Purchase Price to the Company on the Purchase Contract Settlement Date with
respect to __________ Corporate PIES] [$_________ in immediately available funds
paid in an aggregate amount equal to the Purchase Price to the Company on the
Purchase Contract Settlement Date with respect to ______ Treasury PIES.]

                                        BANK ONE TRUST COMPANY, N.A.,
                                        as Securities Intermediary

Date: _______________                   By:______________________________
                                        Name:
                                        Title:<PAGE>

                                                                     EXHIBIT 4.5

================================================================================

                           DOMINION RESOURCES, INC.

                                      and

                             LEHMAN BROTHERS INC.

                             ____________________

                             REMARKETING AGREEMENT

                         Dated as of October 12, 2000

================================================================================
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
Section 1.   Definitions..................................................   1

Section 2.   Appointment and Obligations of the Remarketing Agent.........   2

Section 3.   Representations, Warranties and Agreements of the Company....   3

Section 4.   Officers' Certificates.......................................   6

Section 5.   Fees and Expenses............................................   6

Section 6.   Further Agreements of the Company............................   7

Section 7.   Conditions to the Remarketing Agent's Obligations............   9

Section 8.   Indemnification..............................................  15

Section 9.   Contribution.................................................  17

Section 10.  Resignation and Removal of the Remarketing Agent.............  17

Section 11.  Dealing in the Remarketed Senior Notes.......................  18

Section 12.  Remarketing Agent's Performance; Duty of Care................  18

Section 13.  Termination..................................................  19

Section 14.  Notices......................................................  19

Section 15.  Persons Entitled to Benefit of Agreement.....................  19

Section 16.  Survival.....................................................  20

Section 17.  Governing Law................................................  20

Section 18.  Counterparts.................................................  20

Section 19.  Headings.....................................................  20
</TABLE>

                                      -i-
<PAGE>

                           DOMINION RESOURCES, INC.

            2000 Series G 8.05% Senior Notes, Due November 15, 2006

                             REMARKETING AGREEMENT

                                                                October 12, 2000

LEHMAN BROTHERS INC.
Three World Financial Center
New York, New York 10285

Ladies and Gentlemen:

          Lehman Brothers Inc. is undertaking to remarket the 2000 Series G
8.05% Senior Notes, due November 15, 2006 (the "Senior Notes"), issued by
Dominion Resources, Inc., a Virginia corporation (the "Company"), pursuant to
the Indenture, dated as of June 1, 2000, between the Company and The Chase
Manhattan Bank, as Trustee (the "Indenture Trustee"), as amended and
supplemented by the Seventh Supplemental Indenture, dated October 1, 2000 (as
amended and supplemented, the "Indenture").

          The Remarketing (as defined below) of the Senior Notes is provided for
in the Indenture.

          Section 1.  Definitions.

     (a)  Capitalized terms used and not defined in this Agreement shall have
the meanings set forth in the Purchase Contract Agreement, dated as of October
12, 2000 (the "Purchase Contract Agreement"), between the Company and The Chase
Manhattan Bank, as Purchase Contract Agent (the "Purchase Contract Agent), or in
the Indenture.

     (b)  As used in this Agreement, the following terms have the following
meanings:

          "Principal Amount" means the principal amount of a Senior Note, or
     $50;

          "Remarketed Senior Notes" means the Senior Notes subject to the
     Remarketing, as identified to the Remarketing Agent by the Purchase
     Contract Agent after 3:00 p.m. on the fourth Business Day immediately
     preceding the Purchase Contract Settlement Date;

          "Remarketing Procedures" means the procedures in connection with the
     Remarketing of the Senior Notes described in the Indenture;
<PAGE>

                                                                               2

          "Remarketing" means the remarketing of the Remarketed Senior Notes
     pursuant to the Remarketing Procedures; and

          "subsidiary" has the meaning set forth in Rule 405 under the
     Securities Act.

          Section 2.  Appointment and Obligations of the Remarketing Agent.

     (a)  The Company hereby appoints Lehman Brothers Inc. as exclusive
remarketing agent (the "Remarketing Agent"), and Lehman Brothers Inc. hereby
accepts appointment as Remarketing Agent, for the purpose of (1) Remarketing
Remarketed Senior Notes on behalf of the holders thereof and (2) performing such
other duties as are assigned to the Remarketing Agent in the Remarketing
Procedures, all in accordance with and pursuant to the Remarketing Procedures.

     (b)  The Remarketing Agent agrees to (1) use commercially reasonable
efforts to remarket the Remarketed Senior Notes tendered or deemed tendered to
the Remarketing Agent in the Remarketing, (2) provide prompt notice of the Reset
Rate as set forth in this Agreement and (3) carry out such other duties as are
assigned to the Remarketing Agent in the Remarketing Procedures, all in
accordance with the provisions of the Remarketing Procedures.

     (c)  On the third Business Day immediately preceding the Purchase Contract
Settlement Date (the "Remarketing Date"), the Remarketing Agent shall use
commercially reasonable efforts to remarket, at a price equal to 100.25% of the
aggregate principal amount thereof, the Remarketed Senior Notes tendered or
deemed tendered for purchase.

     (d)  If, as a result of the efforts described in Section 2(b), the
Remarketing Agent determines that it will be able to remarket all Remarketed
Senior Notes tendered or deemed tendered for purchase at a price of 100.25% of
the aggregate principal amount of such Remarketed Senior Notes prior to 4:00
p.m. (New York City time) on the Remarketing Date, the Remarketing Agent shall
determine the Reset Rate, which shall be the rate per annum (rounded to the
nearest one-thousandth (0.001) of one percent per annum) that the Remarketing
Agent determines, in its sole judgment, to be the lowest rate per annum that
will enable it to remarket all Remarketed Senior Notes tendered or deemed
tendered for Remarketing at the aforementioned purchase price.

     (e)  Upon receipt of the proceeds from the Remarketing, the Remarketing
Agent shall:

          (1) remit to the Collateral Agent the portion of the proceeds from the
     Remarketing of the Remarketed Senior Notes subject to the Pledge Agreement
     equal to 100% of the Principal Amount of such Remarketed Senior Notes;

          (2) remit to the Holders of Remarketed Senior Notes not subject to the
     Pledge Agreement the portion of the proceeds from the Remarketing equal to
     100% of the Principal Amount of such Remarketed Senior Notes, and

          (3) retain an amount equal to .25% of the Principal Amount for the
     performance of its services as Remarketing Agent hereunder.
<PAGE>

                                                                               3

     (f)  If none of the holders of Remarketed Senior Notes elects, or is deemed
to have elected, to have Remarketed Senior Notes remarketed in the Remarketing,
the Remarketing Agent shall, in its sole discretion after consultation with the
Company, determine the rate that would have been established had a Remarketing
been held on the Remarketing Date, and such rate shall be the Reset Rate. By
approximately 4:30 p.m. (New York City time) on the Remarketing Date, the
Remarketing Agent shall advise by telephone (promptly confirmed in writing) the
Depositary, the Indenture Trustee and the Company of such Reset Rate.

     (g)  If, by 4:00 p.m. (New York City time) on the Remarketing Date, the
Remarketing Agent is unable to remarket all Remarketed Senior Notes tendered or
deemed tendered for purchase, a failed Remarketing ("Failed Remarketing") shall
be deemed to have occurred, and the Remarketing Agent shall so advise by
telephone (promptly confirmed in writing) the Depositary, the Purchase Contract
Agent, the Indenture Trustee and the Company.  In the event of a Failed
Remarketing, the Reset Rate shall be equal to the Two-Year Benchmark Rate plus
the Applicable Spread and, by approximately 4:30 p.m. (New York City time) on
the Remarketing Date, the Remarketing Agent shall advise by telephone (promptly
confirmed in writing) the Depositary, the Indenture Trustee and the Company of
such Reset Rate.

     (h)  Provided that there has not been a Failed Remarketing, by
approximately 4:30 p.m. (New York City time), on the Remarketing Date, the
Remarketing Agent shall advise, by telephone (promptly confirmed in writing in
the case of clause (1)):

          (1) the Depositary, the Indenture Trustee and the Company of the Reset
     Rate determined in the Remarketing and the number of Remarketed Senior
     Notes sold in the Remarketing;

          (2) each purchaser (or the Clearing Agency Participant thereof) of
     Remarketed Senior Notes of the Reset Rate and the number of Remarketed
     Senior Notes such purchaser is to purchase; and

          (3) each purchaser to give instructions to its Clearing Agency
     Participant to pay the purchase price on the Purchase Contract Settlement
     Date in immediately available funds against delivery of the Remarketed
     Senior Notes purchased through the facilities of the Depositary.

          Section 3.  Representations, Warranties and Agreements of the Company.

          The Company represents, warrants and agrees (i) on and as of the date
hereof, (ii) on and as of the date the Prospectus Supplement or other
Remarketing Materials (each as defined in Section 3(a) below) are first
distributed in connection with the Remarketing (the "Commencement Date"), (iii)
on and as of the Remarketing Date and (iv) on and as of the Purchase Contract
Settlement Date that:

          (a) The conditions for use of Form S-3, as set forth in the General
     Instructions thereto, have been satisfied.

          (b) A registration statement on Form S-3 (File No. 333-93187) and an
     amendment or amendments thereto with respect to the initial offering of the
     Senior Notes
<PAGE>

                                                                               4

     has (i) been prepared by the Company in conformity with the requirements of
     the Securities Act of 1933, as amended (the "Securities Act"), and the
     rules and regulations (the "Rules and Regulations") of the Securities and
     Exchange Commission (the "Commission") thereunder, (ii) been filed with the
     Commission under the Securities Act and (iii) become effective under the
     Securities Act; a registration statement on Form S-3, if required to be
     filed in connection with the Remarketing, also may be prepared by the
     Company in conformity with the requirements of the Securities Act and the
     Rules and Regulations and filed with the Commission under the Securities
     Act; and the Indenture has been qualified under the Trust Indenture Act of
     1939, as amended, (the "Trust Indenture Act"). Copies of such registration
     statement or registration statements that have become effective and the
     amendment or amendments to such registration statements have been delivered
     by the Company to the Remarketing Agent, in the case of documents not
     electronically available through the Commission's EDGAR filing system and,
     in the case of documents that are so available, to the extent requested by
     the Remarketing Agent.

          As used in this Agreement, "Effective Time" means the date and time as
     of which the last of such registration statements that have become
     effective or may be filed, or the most recent post-effective amendment
     thereto, if any, was declared effective by the Commission; "Effective Date"
     means the date of the Effective Time of such last registration statement;
     "Preliminary Prospectus" means each prospectus relating to the Remarketed
     Senior Notes included in such last registration statement, or amendment
     thereto, before it became effective under the Securities Act and any
     prospectus relating to the Remarketed Senior Notes filed by the Company
     pursuant to Rule 424(a) of the Rules and Regulations; "Registration
     Statement" means such last registration statement, as amended at its
     Effective Time, including documents incorporated by reference therein at
     such time and, if applicable, all information contained in the final
     prospectus filed with the Commission pursuant to Rule 424(b) of the Rules
     and Regulations, including any information deemed to be part of such
     Registration Statement as of the Effective Time pursuant to paragraph (b)
     of Rule 430A of the Rules and Regulations; and "Prospectus" means each
     final prospectus relating to the Remarketed Senior Notes, as first filed
     pursuant to Rule 424(b) of the Rules and Regulations.

          Reference made herein to any Preliminary Prospectus, the Prospectus or
     any other information furnished by the Company to the Remarketing Agent for
     distribution to investors in connection with the Remarketing (the
     "Remarketing Materials") shall be deemed to refer to and include any
     documents incorporated by reference therein pursuant to Item 12 of Form S-3
     under the Securities Act as of the date of such Preliminary Prospectus or
     the Prospectus, as the case may be, or, in the case of Remarketing
     Materials, referred to as incorporated by reference therein, and any
     reference to any amendment or supplement to any Preliminary Prospectus, the
     Prospectus or the Remarketing Materials shall be deemed to refer to and
     include any document filed under the Securities Exchange Act of 1934, as
     amended (the "Exchange Act"), after the date of such Preliminary Prospectus
     or the Prospectus incorporated by reference therein pursuant to Item 12 of
     Form S-3 or, if so incorporated, the Remarketing Materials, as the case may
     be; and any reference to any amendment to the Registration Statement shall
     be deemed to include any annual report of the Company filed with the
     Commission pursuant to Section
<PAGE>

                                                                               5

     13(a) or 15(d) of the Exchange Act after the Effective Time that is
     incorporated by reference in the Registration Statement.

          (c) The Commission has not issued an order preventing or suspending
     the use of the Registration Statement, any Preliminary Prospectus, the
     Prospectus or the Remarketing Materials.

          (d) The Registration Statement conforms (and the Prospectus and any
     further amendments or supplements to the Registration Statement or the
     Prospectus, when they become effective or are filed with the Commission, as
     the case may be, will conform) in all respects to the requirements of the
     Securities Act and the Rules and Regulations, and the Registration
     Statement, the Prospectus and the Remarketing Materials do not and will
     not, as of the Effective Date (as to the Registration Statement and any
     amendment thereto), as of the applicable filing date (as to the Prospectus
     and any amendment or supplement thereto) and as of the Commencement Date,
     Remarketing Date and Purchase Contract Settlement Date (as to the
     Registration Statement, the Prospectus and any Remarketing Materials)
     contain any untrue statement of a material fact or omit to state a material
     fact required to be stated therein or necessary to make the statements
     therein not misleading; provided that no representation and warranty is
     made as to the statement of eligibility and qualification on Form T-1 of
     the Indenture Trustee under the Trust Indenture Act, or as to information
     contained in or omitted from the Registration Statement, the Prospectus or
     the Remarketing Materials in reliance upon and in conformity with written
     information furnished to the Company by the Remarketing Agent specifically
     for inclusion therein; the Indenture conforms in all material respects to
     the requirements of the Trust Indenture Act and the applicable rules and
     regulations thereunder.

          (e) Deloitte & Touche LLP, who certified certain of the Company's
     financial statements incorporated by reference in the Registration
     Statement and the Prospectus, and, as of the date hereof,
     PricewaterhouseCoopers LLC, who certified the financial statements of
     Consolidated Natural Gas Company incorporated by reference in the
     Registration Statement and the Prospectus, are independent public
     accountants as required by the Securities Act and the Rules and
     Regulations.

          (f) Except as reflected in, or contemplated by, the Registration
     Statement, the Prospectus or the Remarketing Materials, since the
     respective most recent dates as of which information is given in the
     Registration Statement, the Prospectus or any Remarketing Materials, there
     has not been any material adverse change or event which would result in a
     material adverse effect on the condition of the Company and its
     subsidiaries taken as a whole, financial or otherwise (a "Material Adverse
     Effect").  The Company and its subsidiaries taken as a whole has no
     material contingent financial obligation which is not disclosed in the
     Registration Statement, the Prospectus or the Remarketing Materials.

          (g) All of the issued and outstanding capital stock or membership
     interests of each significant subsidiary of the Company (as such term is
     defined in Rule 1-02 of Regulation S-X promulgated under the Securities
     Act) (each, a "Significant Subsidiary") has been
<PAGE>

                                                                               6

     duly authorized and is validly issued, fully paid and nonassessable and,
     with the exception of the outstanding preferred stock of Virginia Electric
     and Power Company which is owned by third parties, is owned by the Company,
     directly or through subsidiaries, free and clear of any security interest,
     mortgage, pledge, lien, claim, encumbrance or equitable right.

          (h) The execution, delivery and performance of this Agreement, the
     Indenture and the Senior Notes and any other agreement or instrument
     entered into or issued or to be entered into or issued by the Company in
     connection with the transactions contemplated hereby or thereby and the
     consummation of the transactions contemplated herein or therein
     (collectively, the "Transactions") and compliance by the Company with its
     obligations hereunder and thereunder does not and will not, whether with or
     without the giving of notice or lapse of time or both, conflict with or
     constitute a breach of, or default under or result in the creation or
     imposition of any lien, charge or encumbrance upon any property or assets
     of the Company or any subsidiary pursuant to any contract, indenture,
     mortgage, deed of trust, loan or credit agreement, note, lease or any other
     agreement or instrument, to which the Company or any subsidiary is a party
     or by which it or any of them may be bound, or to which any of the property
     or assets of the Company or any subsidiary is subject (except for such
     conflicts, breaches or defaults or liens, charges or encumbrances that
     would not have a Material Adverse Effect), nor will such action result in
     any violation of the provisions of the charter or bylaws of the Company or
     any subsidiary, or any applicable law, statute, rule, regulation, judgment,
     order, writ or decree of any government, government instrumentality or
     court, domestic or foreign, having jurisdiction over the Company or any
     subsidiary or any of their respective properties, assets or operations, and
     the Company has full power and authority to perform under this Agreement.

          (i) The Company is not an "investment company" or an entity
     "controlled" by an "investment company" as such terms are defined in the
     Investment Company Act of 1940, as amended.

          Section 4.  Officers' Certificates.

          Any certificate signed by any officer of the Company or any of its
subsidiaries and delivered to the Remarketing Agent or to counsel for the
Remarketing Agent in connection with the Remarketing shall be deemed a
representation and warranty by the Company to the Remarketing Agent as to the
matters covered thereby on the date of such certificate.

          Section 5.  Fees and Expenses.

     (a)  For the performance of its services as Remarketing Agent hereunder,
the Remarketing Agent shall retain from the proceeds of the Remarketing an
amount equal to 25 basis points (.25%) of the Principal Amount of each
Remarketed Senior Note that is remarketed by the Remarketing Agent.
<PAGE>

                                                                               7

     (b)  The Company agrees to pay:

          (1) the costs incident to the preparation and printing of the
     Registration Statement, Prospectus and any Remarketing Materials and any
     amendments or supplements thereto, including all related registration and
     filing fees;

          (2) the costs of distributing the Registration Statement, Prospectus
     and any Remarketing Materials and any amendments or supplements thereto;

          (3) The fees and expenses of qualifying the Remarketed Senior Notes
     under the securities laws of the several jurisdictions as provided in
     Section 6(f) and of preparing, printing and distributing a Blue Sky
     Memorandum (including related fees and expenses of counsel to the
     Remarketing Agent);

          (4) all other costs and expenses incident to the performance of the
     obligations of the Company hereunder, including the fees and expenses of
     the Company's counsel; and

          (5) the reasonable fees and expenses of outside counsel to the
     Remarketing Agent in connection with their duties hereunder.

          Section 6.  Further Agreements of the Company.

          The Company covenants and agrees as follows:

          (a)  (1)  To prepare any registration statement or prospectus, if
     required, in connection with the Remarketing, in a form approved by the
     Remarketing Agent and to file any such prospectus pursuant to the
     Securities Act within the period required by the Rules and Regulations;

               (2)  to advise the Remarketing Agent, promptly after it receives
     notice thereof, of the time when any amendment to the Registration
     Statement has been filed or becomes effective or any supplement to the
     Prospectus or any amended Prospectus has been filed, in each such case
     excluding documents filed under the Exchange Act incorporated by reference,
     and to furnish the Remarketing Agent with copies of such notice;

               (3)  to file promptly all reports and any definitive proxy or
     information statements required to be filed by the Company with the
     Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange
     Act subsequent to the date of the Prospectus and for so long as the
     delivery of a prospectus is required in connection with the offering or
     sale of the Remarketed Senior Notes;

               (4)  to advise the Remarketing Agent, promptly after it receives
     notice thereof, of the issuance by the Commission of any stop order or of
     any order preventing or suspending the use of the Prospectus, of the
     suspension of the qualification of any of the Remarketed Senior Notes for
     offering or sale in any jurisdiction, of the initiation or threatening of
     any proceeding for any such purpose, or of any request by the Commission
     for the amending or supplementing of the Registration Statement or the
     Prospectus or for additional information; and, in the event of the issuance
     of any stop order or of any order
<PAGE>

                                                                               8

     preventing or suspending the use of any Prospectus or suspending any such
     qualification, to use promptly its best efforts to obtain its withdrawal.

          (b) To deliver promptly to the Remarketing Agent in New York City such
     number of the following documents as the Remarketing Agent shall request:
     (i) conformed copies of the Registration Statement as originally filed with
     the Commission and each amendment thereto (in each case excluding exhibits
     other than this Agreement and the Indenture), (ii) the Prospectus and any
     amended or supplemented Prospectus, (iii) any document incorporated by
     reference in the Prospectus (excluding exhibits thereto) and (iv) any
     Remarketing Materials; and, if the delivery of a prospectus is required at
     any time in connection with the Remarketing and if at such time any event
     shall have occurred as a result of which the Prospectus as then amended or
     supplemented would include any untrue statement of a material fact or omit
     to state any material fact necessary in order to make the statements
     therein, in the light of the circumstances under which they were made when
     such Prospectus is delivered, not misleading, or if for any other reason in
     the opinion of counsel to the Company or the Remarketing Agent it shall be
     necessary during such same period to amend or supplement the Registration
     Statement or Prospectus or to file under the Exchange Act any document
     incorporated by reference in the Prospectus in order to comply with the
     Securities Act or the Exchange Act, to notify the Remarketing Agent and to
     file such document and to prepare and furnish without charge to the
     Remarketing Agent and to any dealer in Senior Notes as many copies as the
     Remarketing Agent may from time to time request of an amended or
     supplemented Prospectus which will correct such statement or omission or
     effect such compliance.

          (c) To file promptly with the Commission any amendment to the
     Registration Statement or the Prospectus or any supplement to the
     Prospectus that may, in the judgment of the Company or the Remarketing
     Agent, be required by the Securities Act or requested by the Commission.

          (d) Prior to filing with the Commission (i) any amendment to the
     Registration Statement or supplement to the Prospectus (excluding documents
     filed under the Exchange Act incorporated by reference) or (ii) any
     Prospectus pursuant to Rule 424 of the Rules and Regulations, to furnish a
     copy thereof to the Remarketing Agent and counsel to the Remarketing Agent;
     and to afford them a reasonable opportunity to comment on any such
     amendment or supplement.

          (e) As soon as practicable after the Effective Date of the
     Registration Statement to make "generally available to the Company's
     security holders" and to deliver to the Remarketing Agent an "earnings
     statement" of the Company and its subsidiaries (which need not be audited)
     in reasonable detail, covering a period of at least 12 months beginning
     within three months after the Effective Date of the Registration Statement,
     which earnings statement shall satisfy the requirements of Section 11(a) of
     the Securities Act. The terms "generally available to its security holders"
     and "earnings statement" shall have the meanings set forth in Rule 158 of
     the Rules and Regulations.

          (f) Promptly from time to time to take such action as the Remarketing
     Agent may reasonably request to qualify any of the Remarketed Senior Notes
     for offer and sale under
<PAGE>

                                                                               9

     the securities or "blue sky" laws of such jurisdictions as the Remarketing
     Agent may request and to comply with such laws so as to permit the
     continuance of sales and dealings therein in such jurisdictions for as long
     as may be necessary to complete the distribution of the Senior Notes;
     provided that in connection therewith, the Company shall not be required to
     qualify as a foreign corporation or to file a general consent to service of
     process in any jurisdiction in which it is not so qualified or to submit to
     any requirements which it deems unduly burdensome.

          Section 7.  Conditions to the Remarketing Agent's Obligations.

          The obligations of the Remarketing Agent hereunder are subject to (i)
the accuracy, on and as of the date when made, of the representations and
warranties of the Company contained herein or in any Certificates of any officer
of the Company or any subsidiary of the Company delivered pursuant hereto, (ii)
the performance by the Company of its obligations hereunder and (iii) each of
the following additional terms and conditions:

          (a) The Prospectus shall have been filed with the Commission pursuant
     to Section 6(a) hereof; no stop order suspending the effectiveness of the
     Registration Statement or any part thereof or suspending the qualification
     of the Indenture, shall have been issued and no proceeding for that purpose
     shall have been initiated or threatened by the Commission; and any request
     of the Commission for inclusion of additional information in the
     Registration Statement or the Prospectus or otherwise shall have been
     complied with.

          (b) The Remarketing Agent shall not have discovered and disclosed to
     the Company on or prior to the Remarketing Date that the Registration
     Statement, the Prospectus or the Remarketing Materials or any amendment or
     supplement thereto contains any untrue statement of a fact which, in the
     opinion of counsel to the Remarketing Agent, is material or omits to state
     any fact which, in the opinion of such counsel, is material and is required
     to be stated therein or is necessary to make the statements therein not
     misleading and the Company shall not have filed an amendment or supplement
     to the Registration Statement or otherwise acted to correct the matter so
     disclosed.

          (c) Counsel to the Company shall have furnished to the Remarketing
     Agent its written opinion, addressed to the Remarketing Agent and dated the
     Remarketing Date, in form and substance satisfactory to the Remarketing
     Agent, to the effect that:

              (i) No filing with, or authorization, approval, consent, license,
          order, registration, qualification or decree of, any court or
          governmental authority or agency, domestic or foreign (other than
          those required under the Public Utility Holding Company Act of 1935,
          the Securities Act and the Rules and Regulations, which have been
          obtained, or as may be required under the securities or blue sky laws
          of the various states) is necessary or required in connection with the
          due authorization, execution, delivery or performance of the
          Indenture, the Senior Notes and this Agreement by the Company or for
          the Remarketing of the Senior Notes.  An appropriate order of the
          Commission with respect to the sale of the
<PAGE>

                                                                              10

          Corporate PIES, of which the Senior Notes are a part, under the Public
          Utility Holding Company Act of 1935, as amended, has been issued, and
          such order remains in effect at this date.

               (ii)  The Indenture has been duly authorized, executed and
          delivered by, has been duly qualified under the Trust Indenture Act
          and constitutes a valid and binding obligation of, the Company,
          enforceable against the Company in accordance with its terms, subject
          to the effects of bankruptcy, insolvency, fraudulent conveyance,
          reorganization, moratorium and other similar laws relating to or
          affecting creditors' rights generally, general equitable principles
          (whether considered in a proceeding in equity or at law) and an
          implied covenant of good faith and fair dealing.

               (iii) The Senior Notes have been duly authorized, executed,
          issued and delivered by the Company and constitute valid and binding
          obligations of the Company entitled to the benefits of the Indenture,
          enforceable in accordance with their terms, subject to the effects of
          bankruptcy, insolvency, fraudulent conveyance, reorganization,
          moratorium and other similar laws relating to or affecting creditors'
          rights generally, general equitable principles (whether considered in
          a proceeding in equity or at law) and an implied covenant of good
          faith and fair dealing.

               (iv)  The Remarked Senior Notes and the Remarketing Agreement,
          when the Remarked Senior Notes are remarketed pursuant to this
          Agreement, will conform to the descriptions thereof contained in the
          Prospectus and in any Remarketing Materials, and the Indenture is in
          substantially the form filed as an exhibit to the Registration
          Statement.

               (v)   The Registration Statement was declared effective under the
          Securities Act, and the Indenture was qualified under the Trust
          Indenture Act, as of the date and time specified in such opinion, the
          Prospectus was filed with the Commission pursuant to the subparagraph
          of Rule 424(b) of the Rules and Regulations specified in such opinion
          on the date specified therein and, to the knowledge of such counsel,
          no stop order suspending the effectiveness of the Registration
          Statement has been issued and no proceeding for that purpose is
          pending or threatened by the Commission.

               (vi)  The Registration Statement and the Prospectus appear on
          their face to be appropriately responsive in all material respects to
          the requirements of the Securities Act and the Rules and Regulations
          (except that such counsel may express no comment or belief with
          respect to the financial statements and schedules and other financial
          or statistical information contained in the Registration Statement or
          Prospectus).

               (vii) The statements contained in the Prospectus under the
          captions "Description of Debt Securities," "Additional Terms of Senior
          Debt Securities," and "Description of the Senior Notes," insofar as
          they purport to constitute
<PAGE>

                                                                              11

          summaries of certain terms of documents referred to therein,
          constitutes accurate summaries of the terms of such documents in all
          material respects.

               (viii)  Based upon current law and the assumptions stated or
          referred to therein, the statements relating to the Remarked Senior
          Notes set forth in the Prospectus or in the Remarketing Materials
          under the caption "United States Federal Income Tax Consequences,"
          insofar as they purport to constitute summaries of matters of United
          States federal tax laws and regulations or legal conclusions with
          respect thereto, constitute accurate summaries of the matters
          described therein in all material respects.

     In rendering such opinion, such counsel may state that its opinion is
     limited to matters governed by the Federal laws of the United States of
     America and the laws of the Commonwealth of Virginia and the State of New
     York.  Such counsel shall also advise the Remarketing Agent that although
     such counsel is not passing upon and assumes no responsibility or liability
     for the accuracy, completeness or fairness of the statements contained in
     the documents incorporated by reference in the Prospectus or any further
     amendment or supplement thereto made by the Company prior to such
     Remarketing Date, they have no reason to believe that any of such documents
     (other than the financial statements and related schedules therein, as to
     which such counsel need express no opinion), when such documents became
     effective or were filed with the Commission, as the case may be, contained,
     in the case of a registration statement which became effective under the
     Securities Act, an untrue statement of a material fact or omitted to state
     a material fact required to be stated therein necessary to make the
     statements therein not misleading, or, in the case of other documents which
     were filed under the Securities Act or the Exchange Act with the
     Commission, an untrue statement of a material fact or omitted to state a
     material fact necessary in order to make the statements therein, in light
     of the circumstances under which they were made when such documents were so
     filed, not misleading.  Such counsel shall also advise the Remarketing
     Agent that although such counsel is not passing upon and, except as set
     forth in clauses (vii) and (viii) above, assumes no responsibility or
     liability for the accuracy, completeness or fairness of the statements
     contained in the Registration Statement, the Prospectus and the Remarketing
     Materials and any further amendments and supplements thereto made by the
     Company prior to such date, such counsel has no reason to believe that, as
     of its effective date, the Registration Statement or any further amendment
     thereto made by the Company prior to such date (other than the financial
     statements and related schedules therein, as to which such counsel need
     express no opinion) contained an untrue statement of a material fact or
     omitted to state a material fact required to be stated therein or necessary
     to make the statements therein not misleading or that, as of its date, the
     Prospectus and the Remarketing Materials or any further amendment or
     supplement thereto made by the Company prior to such Remarketing Date
     (other than the financial statements and related schedules therein, as to
     which such counsel need express no opinion) contained an untrue statement
     of a material fact or omitted to state a material fact necessary to make
     the statements therein, in light of the circumstances under which they were
     made, not misleading or that, as of the Commencement Date, the Remarketing
     Date and the Purchase Contract Settlement Date, either the Registration
     Statement, the Prospectus or the Remarketing Materials or any further
     amendment or supplement thereto made by the
<PAGE>

                                                                              12

     Company prior to such Remarketing Date (other than the financial statements
     and related schedules therein, as to which such counsel need express no
     opinion) contains an untrue statement of a material fact or omits to state
     a material fact necessary to make the statements therein, in light of the
     circumstances under which they were made, not misleading. Such counsel may
     state that its opinion is given on the basis that any statement contained
     in a document incorporated by reference in the Prospectus or any further
     amendment or supplement thereto shall be deemed not to be contained in the
     Registration Statement or Prospectus if the statement has been modified or
     superseded by any statement in a subsequently filed document incorporated
     by reference in the Prospectus or any further amendment or supplement
     thereto or in the Registration Statement or Prospectus.

          (d)  The General Counsel of the Company shall have furnished to the
     Remarketing Agent a written opinion, addressed to the Remarketing Agent and
     dated the Remarketing Date, in form and substance satisfactory to the
     Remarketing Agent, to the effect that:

               (i)   The Company has been duly incorporated and is validly
          existing as a corporation in good standing under the laws of the
          Commonwealth of Virginia and has the corporate power and authority to
          own, lease and operate its properties and to conduct its business as
          described in Prospectus and in any Remarketing Materials and to enter
          into and perform its obligations under this Agreement and the
          Indenture.  The Company is duly qualified as a foreign corporation to
          transact business and is in good standing in each other jurisdiction
          in which such qualification is required, whether by reason of the
          ownership or leasing of property or the conduct of business, except
          where the failure to so qualify or be in good standing would not
          result in a Material Adverse Effect.

               (ii)  Each Significant Subsidiary of the Company has been duly
          organized and is validly existing in good standing under the laws of
          the jurisdiction of its organization, has the power and authority to
          own, lease and operate its properties and to conduct its business as
          described in the Prospectus and in any Remarketing Materials and is
          duly qualified to transact business and is in good standing in each
          jurisdiction in which such qualification is required, whether by
          reason of the ownership or leasing of property or the conduct of
          business, except where the failure to so qualify or be in good
          standing would not result in a Material Adverse Effect.

               (iii) This Agreement has been duly authorized, executed and
          delivered by the Company.

               (iv)  There are no actions, suits or proceedings pending or, to
          the best of such counsel's knowledge, threatened, to which the Company
          or any of its subsidiaries is a party or to which any of the
          properties of the Company or any of its subsidiaries is subject, other
          than (A) as described in the Prospectus or in any Remarketing
          Materials and (B) actions, suits or proceedings which such counsel
          believes are not likely to have a material adverse effect on the power
          or ability of
<PAGE>

                                                                              13

          the Company to perform its obligations under this Agreement or to
          consummate the Transactions.

          (e) On the Remarketing Date, the Company shall have furnished to the
     Remarketing Agent a letter addressed to the Remarketing Agent and dated
     such date, in form and substance satisfactory to the Remarketing Agent, of
     Deloitte & Touche LLP or such other firm of nationally recognized
     independent public accountants satisfactory to the Remarketing Agent,
     containing statements and information of the type ordinarily included in
     accountants' "comfort letters" with respect to certain financial
     information contained in the Prospectus and in the Remarketing Materials.

          (f)  The Company shall have furnished to the Remarketing Agent a
     certificate, dated the Remarketing Date, of its President or any Vice
     President, stating that:

               (i)  the representations, warranties and agreements of the
          Company contained in this Agreement are true and correct as of the
          Remarketing Date, and the Company performed all obligations and
          satisfied all conditions required of it under this Agreement; and

               (ii) no stop order suspending the effectiveness of the
          Registration Statement is in effect and no proceedings for such
          purpose are pending before, or to such officer's knowledge, threatened
          by the Commission on the date hereof.

          (g)  Subsequent to fifteen Business Days prior to the Remarketing Date
     and prior to the Remarketing on the Remarketing Date, except as reflected
     in, or contemplated by, the Registration Statement, the Prospectus and the
     Remarketing Materials, there shall not have occurred:

               (i)   any change in the common stock or long-term debt of the
          Company (other than a decrease in the aggregate principal amount of
          such debt outstanding);

               (ii)  any material adverse change in the general affairs,
          financial condition or earnings of the Company and its subsidiaries
          taken as a whole; or

               (iii) any material transaction entered into by the Company or a
          Significant Subsidiary other than a transaction in the ordinary course
          of business,

     the effect of which, in any such case described in clause (i), (ii) or
     (iii), is, in the reasonable judgment of the Remarketing Agent, so material
     and so adverse as to make it impracticable to proceed with the Remarketing
     on the terms and in the manner contemplated in the Prospectus, the
     Remarketing Materials and this Agreement.

          (h)  Subsequent to fifteen Business Days prior to the Remarketing Date
     and prior to the Remarketing on the Remarketing Date, there shall not have
     occurred any of the following:
<PAGE>

                                                                              14

               (i)   a downgrading in the rating accorded the Company's senior
          unsecured notes, or securities that are pari passu to the Company's
          senior unsecured notes, by any "nationally recognized statistical
          rating organization" (as that term is defined by the Commission for
          purposes of Rule 436(g)(2) under the Securities Act) or any public
          announcement by any such organization that it has under surveillance
          or review, with possible negative implications, its rating of such
          securities;

               (ii)  any general suspension of trading in securities on the New
          York Stock Exchange or any limitation on prices for such trading or
          any restriction on the distribution of securities established by the
          New York Stock Exchange or by the Commission or by any federal or
          state agency or by the decision of any court;

               (iii) a suspension of trading of any securities of the Company on
          the New York Stock Exchange;

               (iv)  a banking moratorium shall have been declared by federal or
          New York state authorities; or

               (v)   any outbreak or escalation of major hostilities in which
          the United States is involved, any declaration of war by the United
          States Congress or any other substantial national or international
          calamity or crisis resulting in the declaration of a national
          emergency, or any material adverse change in the financial markets,

     the effect of which outbreak, escalation, declaration, calamity, crisis or
     material adverse change, in the reasonable judgment of the Remarketing
     Agent, makes it impracticable to proceed with the Remarketing on the terms
     and in the manner contemplated in the Prospectus, the Remarketing Materials
     and this Agreement.

          (i)  Without the prior written consent of the Remarketing Agent, the
     Indenture shall not have been amended in any manner, or otherwise contain
     any provision not contained therein as of the date hereof that, in the
     reasonable judgment of the Remarketing Agent, materially changes the nature
     of the Remarketed Senior Notes or the Remarketing Procedures.  The
     foregoing shall not require notice to, or the obtaining of consent from,
     the Remarketing Agent with respect to any amendment or change in the
     Indenture that does not materially change the nature of the Remarketed
     Senior Notes or the Remarketing Procedures.

          (j)  All corporate proceedings and other legal matters incident to the
     authorization, form and validity of this Agreement, the Indenture, the
     Remarketed Senior Notes, the Prospectus, the Registration Statement, the
     Remarketing Materials and all other legal matters relating to this
     Agreement and the transactions contemplated hereby shall be reasonably
     satisfactory in all material respects to counsel to the Remarketing Agent,
     and the Company shall have furnished to such counsel all documents and
     information that they may reasonably request to enable them to pass upon
     such matters.
<PAGE>

                                                                              15

          All opinions, letters, evidence and certificates mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory
to counsel for the Remarketing Agent.

          Section 8.  Indemnification.

     (a)  The Company agrees to indemnify and hold harmless the Remarketing
Agent and each person who controls the Remarketing Agent within the meaning of
Section 15 of the Securities Act or Section 20(a) of the Exchange Act, from and
against any and all losses, claims, damages or liabilities, joint or several, or
any actions in respect thereof, to which the Remarketing Agent or any such
controlling person may become subject, under the Securities Act, the Exchange
Act or any other statute or common law and to reimburse the Remarketing Agent
and any such controlling person for any legal or other expenses (including, to
the extent hereinafter provided, reasonable outside counsel fees) incurred by
the Remarketing Agent or any such controlling person in connection with
investigation or defending any such losses, claims, damages or liabilities or in
connection with defending any actions, insofar as such losses, claims, damages,
liabilities, expenses or actions arise out of, or are based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in (A) the
Registration Statement or the Prospectus or in any amendment or supplement
thereto (if any amendments or supplements thereto shall have been furnished) (B)
any Preliminary Prospectus (if and when used prior to the Effective Date) or (C)
any Remarketing Materials, or (ii) the omission or alleged omission to state
therein any material fact required to be stated therein or necessary to make the
statements therein not misleading; provided, however, that the foregoing
agreement, insofar as it relates to any Preliminary Prospectus, shall not inure
to the benefit of the Remarketing Agent (or to the benefit of any such
controlling person) on account of any losses, claims, damages, liabilities or
actions arising out of the sale of the Remarketed Senior Notes to any person by
the Remarketing Agent if it shall be established that a copy of the Prospectus,
excluding any documents incorporated by reference (as supplemented or amended,
if the Company shall have made any supplements or amendments which have been
furnished to the Remarketing Agent), shall not have been sent or given by or on
behalf of the Remarketing Agent to such person at or prior to the written
confirmation of the sale to such person in any case where such delivery is
required by the Securities Act and the Company satisfied its obligations
pursuant to Section 6(b), if the misstatement or omission leading to such loss,
claim, damage, liability or action was corrected in the Prospectus (excluding
any documents incorporated by reference) as amended or supplemented, and such
correction would have cured the defect giving rise to such loss, claim, damage,
liability or action; and provided further that the indemnity agreement of the
Company contained in this Section 8(a) shall not apply to any such losses,
claims, damages, liabilities, expenses or actions arising out of, or based upon,
any such untrue statement or alleged untrue statement or omission or alleged
omission if such statement or omission was made in reliance upon information
furnished herein or otherwise in writing to the Company by or on behalf of the
Remarketing Agent for use therein.  The indemnity agreement of the Company
contained in this Section 8(a) and the representations and warranties of the
Company contained in or made pursuant to Sections 3 and 4 shall remain operative
and in full force and effect, regardless of any investigation made by or on
behalf of the Remarketing Agent or any such controlling person, and shall
survive the Remarketing of the Remarketed Senior Notes.
<PAGE>

                                                                              16

     (b)  The Remarketing Agent agrees to indemnify and hold harmless the
Company, its officers and directors and each person who controls the Company
within the meaning of Section 15 of the Securities Act or Section 20(a) of the
Exchange Act, from and against any and all losses, claims, damages or
liabilities, joint or several, or any actions in respect thereof, to which they
or any of them may become subject, under the Securities Act, the Exchange Act or
any other statute or common law and to reimburse each of them for any legal or
other expenses (including, to the extent hereinafter provided, reasonable
outside counsel fees) incurred by them in connection with investigation or
defending any such losses, claims, damages or liabilities or in connection with
defending any actions, insofar as such losses, claims, damages, liabilities,
expenses or actions arise out of, or are based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in (A) the Registration
Statement or the Prospectus or in any amendment or supplement thereto (if any
amendments or supplements thereto shall have been furnished) (B) any Preliminary
Prospectus (if and when used prior to the Effective Date) or (C) any Remarketing
Materials, or (ii) the omission or alleged omission to state therein any
material fact required to be stated therein or necessary to make the statements
therein not misleading, if such statement or omission was made in reliance upon
information furnished herein or in writing to the Company by or on behalf of the
Remarketing Agent for use therein. The indemnity agreement of the Remarketing
Agent contained in this Section 8(b) shall remain operative and in full force
and effect, regardless of any investigation made by or on behalf of the Company
or any such controlling person, and shall survive the Remarketing of the
Remarketed Senior Notes.

     (c)  Upon the receipt of notice of the commencement of any action against
the Company or any of its officers or directors or any person controlling the
Company or the Remarketing Agent or any person controlling the Remarketing Agent
as aforesaid, in respect of which indemnity may be sought on account of any
indemnity agreement contained herein, it will promptly give written notice of
the commencement thereof to the party or parties against whom indemnity shall be
sought hereunder, but the omission so to notify such indemnifying party or
parties of any such action shall not relieve such indemnifying party or parties
from any liability which it or they may have to the indemnified party otherwise
than on account of such indemnity agreement. In case such notice of any such
action shall be so given, such indemnifying party shall be entitled to
participate at its own expense in the defense or, if it so elects, to assume (in
conjunction with any other indemnifying parties) the defense of such action, in
which event such defense shall be conducted by counsel chosen by such
indemnifying party (or parties) and satisfactory to the indemnified party or
parties who shall be defendant or defendants in such action, and such defendant
or defendants shall bear the fees and expenses of any additional outside counsel
retained by them; provided that, if the defendants (including impleaded parties)
in any such action include both the indemnified party and the indemnifying party
(or parties) and the indemnified party shall have reasonably concluded that
there may be legal defenses available to it and/or other indemnified parties
which are different from or additional to those available to the indemnifying
party (or parties), the indemnified party shall have the right to select
separate counsel to assert such legal defenses and to participate otherwise in
the defense of such action on behalf of such indemnified party.  The
indemnifying party shall bear the reasonable fees and expenses of outside
counsel retained by the indemnified party if (i) the indemnified party shall
have retained such counsel in connection with the assertion of legal defenses in
accordance with the proviso to the preceding sentence (it being understood,
however, that the indemnifying party shall not be liable for the expenses of
more than one separate counsel (in addition to one local
<PAGE>

                                                                              17

counsel), representing the indemnified parties under Section 8(a) or 8(b), as
the case may be, who are parties to such action), (ii) the indemnifying party
shall have elected not to assume the defense of such action, (iii) the
indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of the commencement of the action, or (iv) the indemnifying party
has authorized the employment of counsel for the indemnified party at the
expense of the indemnifying party. Notwithstanding the foregoing sentence, an
indemnifying party shall not be liable for any settlement of any proceeding
effected without its written consent (such consent not to be unreasonably
withheld), but if settled with such consent or if there be a final judgment for
the plaintiff, the indemnifying party agrees to indemnify the indemnified party
from and against any loss or liability by reason of such settlement or judgment.
No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened proceeding
in respect of which indemnification may be sought hereunder (whether or not the
indemnified party is an actual or potential party to such a proceeding), unless
such settlement (i) includes an unconditional release of such indemnified party
from all liability on claims that are the subject matter of such proceeding and
(ii) does not include a statement as to or an admission of fault, culpability or
failure to act by or on behalf of any indemnified party.

          Section 9.  Contribution.

     (a)  If the indemnification provided for in Section 8 hereof is unavailable
to or insufficient to hold harmless an indemnified party in respect of any
losses, claims, damages or liabilities, or actions in respect thereof, referred
to therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or
liabilities, or actions in respect thereof, in such proportion as is appropriate
to reflect the relative fault of the Company on the one hand and the Remarketing
Agent on the other in connection with the statements or omissions which resulted
in such losses, claims, damages or liabilities, or actions in respect thereof,
as well as any other relevant equitable considerations, including relative
benefit. The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact required to be stated
therein or necessary in order to make the statements therein not misleading
relates to information supplied by the Company on the one hand or the
Remarketing Agent on the other hand and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The Company and the Remarketing Agent agree that it would not be just
and equitable if contribution pursuant to this Section 9 were to be determined
by pro rata allocation or by any other method of allocation which does not take
into account the equitable considerations referred to above in this Section 9.
The amount paid or payable by an indemnified party as a result of the losses,
claims, damages or liabilities, or actions in respect thereof, referred to above
in this Section 9 shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such claim or action. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The remedies provided for in this Section 9 are
not exclusive and shall not limit any rights or remedies which may otherwise be
available to any indemnified party at law or in equity.

          Section 10.  Resignation and Removal of the Remarketing Agent.
<PAGE>

                                                                              18

          The Remarketing Agent may resign and be discharged from its duties and
obligations hereunder by giving 60 days' prior written notice to the Company,
the Depositary and the Indenture Trustee. The Company may remove the Remarketing
Agent by giving 60 days' prior written notice to the removed Remarketing Agent,
the Depositary and the Indenture Trustee upon any of the following events:

               (i)   the Remarketing Agent becomes involved as a debtor in a
          bankruptcy, insolvency or similar proceeding;

               (ii)  the Remarketing Agent shall not be among the 10
          underwriters with the largest volume underwritten in dollars, on a
          lead managed basis, of U.S. domestic debt securities during the
          twelve-month period ended as of the last calendar quarter preceding
          the Remarketing Date;

               (iii) the Remarketing Agent shall be subject to one or more legal
          restrictions preventing the performance of its obligations hereunder;

               (iv)  the Remarketing Agent shall determine that (A) there has
          been an occurrence of a material adverse change of the kind described
          under Section 7(g)(ii) or (B) using its commercially reasonable
          efforts, the Remarketing Agent would be unable to consummate the
          Remarketing on the terms and in the manner contemplated in the
          Prospectus and the Remarketing Materials; or

               (v)   the Company shall determine in its sole discretion that
          using its commercially reasonable efforts, the Remarketing Agent would
          be unable to consummate the Remarketing on the terms and in the manner
          contemplated in the Prospectus and the Remarketing Materials.

Notwithstanding any other provision in this Section 10, no such resignation nor
any such removal shall become effective until the Company shall have appointed
at least one nationally recognized broker-dealer as successor Remarketing Agent
and such successor Remarketing Agent shall have entered into a remarketing
agreement with the Company, in which it shall have agreed to conduct the
Remarketing in accordance with the Remarketing Procedures.  The provisions of
Sections 5, 8 and 9 shall survive the resignation or removal of any Remarketing
Agent pursuant to this Agreement.

          Section 11.  Dealing in the Remarketed Senior Notes.

          The Remarketing Agent, when acting as a Remarketing Agent or in its
individual or any other capacity, may, to the extent permitted by law, buy,
sell, hold and deal in any of the Remarketed Senior Notes.  The Remarketing
Agent may exercise any vote or join in any action which any beneficial owner of
Remarketed Senior Notes may be entitled to exercise or take pursuant to the
Indenture with like effect as if it did not act in any capacity hereunder.  The
Remarketing Agent, in its individual capacity, either as principal or agent, may
also engage in or have an interest in any financial or other transaction with
the Company as freely as if it did not act in any capacity hereunder.

          Section 12.  Remarketing Agent's Performance; Duty of Care.
<PAGE>

                                                                              19

          The duties and obligations of the Remarketing Agent shall be
determined solely by the express provisions of this Agreement, the Indenture and
the Senior Notes.  No implied covenants or obligations of or against the
Remarketing Agent shall be read into this Agreement, the Indenture or the Senior
Notes.  In the absence of bad faith on the part of the Remarketing Agent, the
Remarketing Agent may conclusively rely upon any document furnished to it, which
purports to conform to the requirements of this Agreement, the Indenture or the
Senior Notes as to the truth of the statements expressed in any of such
documents.  The Remarketing Agent shall be protected in acting upon any document
or communication reasonably believed by it to have been signed, presented or
made by the proper party or parties.  The Remarketing Agent, acting under this
Agreement, shall incur no liability to the Company or to any holder of
Remarketed Senior Notes in its individual capacity or as Remarketing Agent for
any action or failure to act, on its part in connection with a Remarketing or
otherwise, except if such liability is judicially determined to have resulted
from the gross negligence or willful misconduct on its part.

          Section 13.  Termination.

          This Agreement shall terminate as to the Remarketing Agent on the
effective date of the resignation or removal of the Remarketing Agent pursuant
to Section 10. In addition, the obligations of the Remarketing Agent hereunder
may be terminated by it by notice given to the Company prior to 10:00 a.m. (New
York City time) on the Remarketing Date if, prior to that time, any of the
events described in Sections 7(g), (h) and (i) shall have occurred.

          Section 14.  Notices.

          All statements, requests, notices and agreements hereunder shall be in
writing, and:

          (a) if to the Remarketing Agent, shall be delivered or sent by mail,
     telex or facsimile transmission to Lehman Brothers Inc., Three World
     Financial Center, New York, New York 10285, Attention:  Syndicate
     Department (Fax: (212) 528-8822);

          (b) if to the Company shall be delivered or sent by mail, telex or
     facsimile transmission to the address of the Company set forth in the
     Prospectus, Attention: Treasurer (Fax: (804) 819-2211).

Any such statements, requests, notices or agreements shall take effect at the
time of receipt thereof.

          Section 15.  Persons Entitled to Benefit of Agreement.

          This Agreement shall inure to the benefit of and be binding upon the
Remarketing Agent, the Company and their respective successors.  This Agreement
and the terms and provisions hereof are for the sole benefit of only those
persons, except that (x) the representations, warranties, indemnity and
contribution agreements and other agreements of the Company contained in this
Agreement shall also be deemed to be for the benefit of the officers and
employees of the Remarketing Agent and the person or persons, if any, who
control the Remarketing Agent within the meaning of Section 15 of the Securities
Act and (y) the indemnity and contribution agreements of the Remarketing Agent
contained in Sections 8(b) and 9 of this
<PAGE>

                                                                              20

Agreement shall be deemed to be for the benefit of directors, officers and
employees of the Company and any person controlling the Company within the
meaning of Section 15 of the Securities Act. Nothing contained in this Agreement
is intended or shall be construed to give any person, other than the persons
referred to herein, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein.

          Section 16.  Survival.

          The respective indemnities, representations, warranties and agreements
of the Company and the Remarketing Agent contained in this Agreement or made by
or on behalf of them, respectively, pursuant to this Agreement, shall survive
the Remarketing and shall remain in full force and effect, regardless of any
investigation made by or on behalf of any of them or any person controlling any
of them.

          Section 17.  Governing Law.

          This Agreement shall be governed by, and construed in accordance with,
the laws of New York.

          Section 18.  Counterparts.

          This Agreement may be executed in one or more counterparts and, if
executed in more than one counterpart, the executed counterparts shall each be
deemed to be an original but all such counterparts shall together constitute one
and the same instrument.

          Section 19.  Headings.

          The headings herein are inserted for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of,
this Agreement.
<PAGE>

          If the foregoing correctly sets forth the agreement between the
Company and the Remarketing Agent, please indicate your acceptance in the space
provided for that purpose below.

                                             Very truly yours,

                                             DOMINION RESOURCES, INC.

                                             By:________________________________
                                                Title:

Accepted:

LEHMAN BROTHERS INC.

By:_____________________________
     Authorized Representative

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]