Document:

<PAGE>   1
                                                                    Exhibit 4(j)

                                 [FACE OF NOTE]

CUSIP NO.

REGISTERED
PRINCIPAL AMOUNT
No. FL -

                                EATON CORPORATION
                                MEDIUM-TERM NOTE
                                 (FLOATING RATE)

                  If the registered owner of this Security (as indicated below)
is The Depository Trust Company (the "Depository") or a nominee of the
Depository, this Security is a Global Security and the following two legends
apply:

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY, ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT
AS A WHOLE BY THE DEPOSITORY TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH
NOMINEE TO A SUCCESSOR OF THE DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR.

IF APPLICABLE, THE "TOTAL AMOUNT OF OID", "YIELD TO MATURITY" AND "INITIAL
ACCRUAL PERIOD OID" (COMPUTED UNDER THE APPROXIMATE METHOD) BELOW WILL BE
COMPLETED SOLELY FOR THE PURPOSES OF APPLYING THE FEDERAL INCOME TAX ORIGINAL
ISSUE DISCOUNT ("OID") RULES.

<PAGE>   2

                                        2

<TABLE>

<S>                                                          <C>
ISSUE PRICE:                                                  OPTION TO ELECT REPAYMENT:   [ ] YES  [ ] NO

ORIGINAL ISSUE DATE:                                          OPTIONAL REPAYMENT DATE[S]:

STATED MATURITY DATE:                                         OPTIONAL REDEMPTION:  [ ] YES  [ ] NO

BASE RATE:                                                    INITIAL REDEMPTION DATE:

 If LIBOR: [ ] LIBOR Telerate
           [ ] LIBOR Reuters
           [ ] Other                                          INITIAL REDEMPTION PERCENTAGE:
           Designated LIBOR Page:
           Designated LIBOR Currency:
 If CMT Rate,
           Designated CMT Telerate Page:
           Designated CMT Maturity Index:

INITIAL INTEREST RATE:                                        ANNUAL REDEMPTION PERCENTAGE REDUCTION:

INDEX MATURITY:                                               MINIMUM DENOMINATION:
                                                                [ ] $1,000
                                                                [ ] Other:

SPREAD (PLUS OR MINUS):                                       SPECIFIED CURRENCY:
                                                              United States Dollars:
                                                              [ ] YES   [ ] NO

SPREAD MULTIPLIER:                                            Foreign Currency:

CALCULATION AGENT:                                            OPTION TO RECEIVE PAYMENTS
                                                              IN SPECIFIED CURRENCY
                                                              OTHER THAN U.S. DOLLARS:
                                                               [ ] YES   [ ] NO

CALCULATION DATE:                                             EXCHANGE RATE AGENT;

SINKING FUND:                                                 ADDITIONAL AMOUNTS:

MAXIMUM INTEREST RATE:                                        DEFEASANCE: [ ] YES [ ] NO

MINIMUM INTEREST RATE:                                        COVENANT DEFEASANCE: [ ] YES [ ] NO

INTEREST DETERMINATION DATE:                                  OTHER/DIFFERENT PROVISIONS:

INTEREST RESET PERIOD:

INTEREST RESET DATES:

INTEREST PAYMENT PERIOD:

REGULAR RECORD DATES:

INTEREST PAYMENT DATES:

TOTAL AMOUNT OF OID:

INITIAL ACCRUAL PERIOD OID:

YIELD TO MATURITY:

OPTIONAL INTEREST RATE RESET:
[  ] YES  [  ] NO

OPTIONAL INTEREST RATE RESET DATES:
</TABLE>

<PAGE>   3

                                        3

                  EATON CORPORATION, an Ohio corporation (herein referred to as
the "Company", which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to

______________, or registered assigns, the principal sum of ___________on the
Stated Maturity Date shown above (except to the extent redeemed or repaid prior
to the Stated Maturity Date) and to pay interest thereon at the Initial Interest
Rate shown above from the Original Issue Date shown above until the first
Interest Reset Date shown above following the Original Issue Date (if the first
Interest Reset Date is later than the Original Issue Date) and thereafter at the
interest rate determined by reference to the Base Rate shown above, plus or
minus the Spread, if any, or multiplied by the Spread Multiplier, if any, shown
above, or adjusted by such other formula, if any, set forth on the face hereof,
until the principal hereof is paid or duly made available for payment. The
Company will pay interest on each Interest Payment Date, if any, specified
above, commencing with the first Interest Payment Date next succeeding the
Original Issue Date, and on the Stated Maturity Date, any Redemption Date or
Repayment Date (each such date being hereinafter referred to as the "Maturity
Date" with respect to the principal repayable on such date); provided, however,
that any payment of principal (or premium, if any) or interest, if any, to be
made on any Interest Payment Date or on the Maturity Date that is not a Business
Day (as defined below) shall be made on the next succeeding Business Day (except
that if the Base Rate specified above is LIBOR, and such day falls in the next
succeeding calendar month, such payment will be made on the next preceding
Business Day) as described on the reverse hereof. For purposes of this Security,
unless otherwise specified on the face hereof, "Business Day" means any day that
is not a Saturday or Sunday and that is neither a legal holiday nor a day on
which commercial banks are authorized or required by law, regulation or
executive order to close in The City of New York; provided, however, that, if
the Specified Currency shown above is a Foreign Currency, such day is also not a
day on which commercial banks are authorized or required by law, regulation or
executive order to close in the Principal Financial Center (as defined below) of
the country issuing the Specified Currency (or, if the Specified Currency is the
euro, such day is also a day on which the Trans-European Automated Real-Time
Gross Settlement Express Transfer (TARGET) System is open); provided further
that, with respect to Securities as to which LIBOR is an applicable Base Rate,
such day is also a London Business Day. "London Business Day" means a day on
which commercial banks are open for business (including dealings in the LIBOR
Currency (as defined below)) in London. "Principal Financial Center" means (i)
the capital city of the country issuing the Specified Currency or (ii) the
capital city of the country to which the LIBOR Currency relates, as applicable,
except, in the case of (i) or (ii) above, that with respect to United States
dollars, Australian dollars, Canadian dollars, Deutsche marks, Dutch guilders,
Portuguese escudos, South African rand and Swiss francs, the "Principal
Financial Center" shall be The City of New York, Sydney and (solely in the case
of the Specified Currency) Melbourne, Toronto, Frankfurt, Amsterdam, London
(solely in the case of the LIBOR Currency), Johannesburg and Zurich,
respectively.

<PAGE>   4

                                        4

                  Interest on this Security will accrue from, and including, the
immediately preceding Interest Payment Date to which interest has been paid or
duly provided for (or from, and including, the Original Issue Date if no
interest has been paid or duly provided for) to, but excluding, the applicable
Interest Payment Date or the Maturity Date, as the case may be (each an
"Interest Period"). The interest, if any, so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in the
Indenture and subject to certain exceptions described herein (referred to on the
reverse hereof), be paid to the person (the "Holder") in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on the fifteenth day (whether or not a Business Day) next preceding
such Interest Payment Date (a "Regular Record Date"); provided, however, that,
if this Security was issued between a Regular Record Date and the initial
Interest Payment Date relating to such Regular Record Date, interest, if any,
for the period beginning on the Original Issue Date and ending on such initial
Interest Payment Date shall be paid on the Interest Payment Date following the
next succeeding Regular Record Date to the Holder hereof on such Regular Record
Date; and provided further that interest, if any, payable on the Maturity Date
will be payable to the person to whom the principal hereof shall be payable. Any
such interest not so punctually paid or duly provided for on any Interest
Payment Date other than the Maturity Date ("Defaulted Interest") will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be
paid to the person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a special record date (the
"Special Record Date") for the payment of such Defaulted Interest to be fixed by
the Trustee (referred to on the reverse hereof), notice whereof shall be given
to the Holder of this Security not less than ten days prior to such Special
Record Date, or may be paid at any time in any other lawful manner, all as more
fully provided in the Indenture.

                  Unless otherwise specified above, all payments in respect of
this Security will be made in U.S. dollars regardless of the Specified Currency
shown above unless the Holder hereof makes the election described below. If the
Specified Currency shown above is other than U.S. dollars, the Exchange Rate
Agent (referred to on the reverse hereof) will arrange to convert any such
amounts so payable in respect hereof into U.S. dollars in the manner described
on the reverse hereof; provided, however, that the Holder hereof may, if so
indicated above, elect to receive all or a specified portion of any payment of
principal, premium, if any, and/or interest , if any, in respect of this
Security in such Specified Currency by delivery of a written request to the
corporate trust office of the Trustee in The City of New York, on or prior to
the applicable Regular Record Date or at least fifteen days prior to the
Maturity Date, as the case may be. Such request may be in writing (mailed or
hand delivered) or by cable, telex or other form of facsimile transmission. The
Holder hereof may elect to receive payment in such Specified Currency for all
principal, any premium, if any, and interest payments, if any, and need not file
a separate election for each payment. Such election will remain in effect until
revoked by written notice to the Trustee, but written notice of any such
revocation must be received by the Trustee on or prior to the Regular Record
Date or at least fifteen days prior to the Maturity Date, as the case may be.

<PAGE>   5

                                        5

                  Notwithstanding the foregoing, if the Company determines that
the Specified Currency is not available for making payments in respect hereof
due to the imposition of exchange controls or other circumstances beyond the
Company's control, or is no longer used by the government of the country issuing
such currency or for the settlement of transactions by public institutions of or
within the international banking community, then the Holder hereof may not so
elect to receive payments in the Specified Currency and any such outstanding
election shall be automatically suspended, until the Company determines that the
Specified Currency is again available for making such payments. Any payment made
under such circumstances in U.S. dollars where the required payment is in a
Specified Currency will not constitute a default under the Indenture.

                  In the event of an official redenomination of the Specified
Currency, the obligations of the Company with respect to payments on this
Security shall, in all cases, be deemed immediately following such
redenomination to provide for payment of that amount of redenominated currency
representing the amount of such obligations immediately before such
redenomination. In no event shall any adjustment be made to any amount payable
hereunder as a result of any change in the value of the Specified Currency shown
above relative to any other currency due solely to fluctuations in exchange
rates.

                  Until this Security is paid in full or payment therefor in
full is duly provided for, the Company will at all times maintain a Paying Agent
(which Paying Agent may be the Trustee) in The City of New York (which, unless
otherwise specified above, shall be the "Place of Payment"). The Company has
initially appointed The Chase Manhattan Bank, at its office in The City of New
York as Paying Agent.

                  Unless otherwise shown above, payment of interest on this
Security (other than on the Maturity Date) will be made by check mailed to the
registered address of the Holder hereof as of the Regular Record Date; provided,
however, that, if (i) the Specified Currency is U.S. dollars and this is a
Global Security (as defined on the reverse hereof) or (ii) the Specified
Currency is a Foreign Currency and the Holder has elected to receive payments in
such Specified Currency as provided for above, such interest payments will be
made by transfer of immediately available funds, but only if appropriate wire
transfer instructions have been received in writing by the Trustee on or prior
to the applicable Regular Record Date. Simultaneously with any election by the
Holder hereof to receive payments in respect hereof in the Specified Currency
(if other than U.S. dollars), such Holder may provide appropriate wire transfer
instructions to the Trustee, and all such payments will be made in immediately
available funds to an account maintained by the payee with a bank, but only if
such bank has appropriate facilities therefor. Unless otherwise specified above,
the principal hereof (and premium, if any) and interest hereon payable on the
Maturity Date will be paid in immediately available funds upon surrender of this
Security at the office of the Trustee maintained for that purpose in the Borough
of Manhattan, The City of New York (or at such other location as may be
specified above). The Company will pay any administrative costs imposed by banks
in making payments in immediately available funds but,

<PAGE>   6

                                       6

except as otherwise provided under Additional Amounts above, any tax, assessment
or governmental charge imposed upon payments will be borne by the Holders of the
Securities in respect of which such payments are made.

<PAGE>   7

                  REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
SECURITY SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

                  Unless the certificate of authentication hereon has been
executed by the Trustee by manual signature, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any purpose.

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

                                    EATON CORPORATION

                                    By:__________________________________
                                       Name:
                                       Title:

                                    By:__________________________________
                                       Name:
                                       Title:

[CORPORATE SEAL]

Attest:________________________________
       Name:
       Title:

Dated:

                             TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                    THE CHASE MANHATTAN BANK,
                                    as Trustee

                                    By:___________________________________
                                       Authorized Officer

<PAGE>   8

                                [REVERSE OF NOTE]

                                EATON CORPORATION
                                MEDIUM-TERM NOTE

                  Section 1. General. This Security is one of a duly authorized
issue of securities (herein called the "Securities") of the Company, issued and
to be issued in one or more series under an indenture, dated as of April 1,
1994, as it may be supplemented from time to time (herein called the
"Indenture"), between the Company and The Chase Manhattan Bank (formerly known
as Chemical Bank), Trustee (herein called the "Trustee", which term includes any
successor trustee under the Indenture with respect to a series of which this
Security is a part), to which Indenture and all indentures supplemental thereto,
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof, limited in aggregate principal amount to
U.S.$800,000,000 (or the equivalent thereof in one or more foreign currencies)
or such other principal amount as shall be provided pursuant to the Indenture.

                  Section 2. Payments. If the Specified Currency is other than
U.S. dollars and the Holder hereof fails to elect payment in such Specified
Currency in accordance with the procedures set forth on the face hereof, the
amount of U.S. dollar payments to be made in respect hereof will be determined
by the Exchange Rate Agent specified on the face hereof or a successor thereto
(the "Exchange Rate Agent") based on the highest bid quotation in The City of
New York at approximately 11:00 A.M., New York City time, on the second Business
Day preceding the applicable payment date received by the Exchange Rate Agent
from three recognized foreign exchange dealers (one of whom may be the Exchange
Rate Agent) selected by the Exchange Rate Agent and approved by the Company for
the purchase by the quoting dealer of the Specified Currency for U.S. dollars
for settlement on such payment date in the aggregate amount of the Specified
Currency payable to all Holders of Securities scheduled to receive U.S. dollar
payments and at which the applicable dealer commits to execute a contract. If
three such bid quotations are not available, payments will be made in the
Specified Currency.

                  If the Specified Currency is other than U.S. dollars and the
Holder hereof has elected payment in such Specified Currency in accordance with
the procedures set forth on the face hereof and the Specified Currency is not
available due to the imposition of exchange controls or to other circumstances
beyond the Company's control, the Company will be entitled to satisfy its
obligations to the Holder of this Security by making such payment in U.S.
dollars on the basis of the noon buying rate in The City of New York for cable
transfers of such Specified Currency as certified for customs purposes (or, if
not so certified as otherwise determined) by the Federal Reserve Bank of New
York (the "Market Exchange Rate") as computed by the Exchange

<PAGE>   9

                                        2

Rate Agent on the second Business Day prior to the applicable payment date or,
if the Market Exchange Rate is then not available, on the basis of the most
recently available Market Exchange Rate or as otherwise indicated above. Any
payment made under such circumstances in U.S. dollars where the required payment
is in a Specified Currency will not constitute a default under the Indenture.

                  All determinations referred to above made by the Exchange Rate
Agent shall be at its sole discretion (except to the extent expressly provided
that any determination is subject to approval by the Company) and, in the
absence of manifest error, shall be conclusive for all purposes and binding on
the Holder of this Security and the Exchange Rate Agent shall have no liability
therefor.

                  All currency exchange costs will be borne by the Company.

                  Section 3. Interest Rate Calculations. Unless otherwise set
forth on the face hereof, the following provisions of this Section 3 shall apply
to the calculation of interest on this Security. If the first Interest Reset
Date is later than the Original Issue Date, this Security will bear interest
from its Original Issue Date to the first Interest Reset Date at the Initial
Interest Rate set forth on the face hereof. Thereafter, the interest rate hereon
for each Interest Reset Period (as defined below) will be determined by
reference to the Base Rate set forth on the face hereof, as adjusted by the
Spread, the Spread Multiplier or other formula, if any, set forth on the face
hereof.

                  As set forth on the face hereof, this Security may also have
either or both of the following: (i) a maximum limitation, or ceiling, on the
rate at which interest may accrue during any Interest Period (as defined below)
("Maximum Interest Rate"); and (ii) a minimum limitation, or floor, on the rate
at which interest may accrue during any Interest Period ("Minimum Interest
Rate"). In addition to any Maximum Interest Rate that may be set forth on the
face hereof, the interest rate on this Security will in no event be higher than
the maximum rate permitted by New York law, as the same may be modified by
United States law of general application.

                  The rate of interest hereon will be reset daily, weekly,
monthly, quarterly, semiannually or annually or at another interval (each, an
"Interest Reset Period"), as set forth on the face hereof. The date or dates on
which interest will be reset (each, an "Interest Reset Date") will be, if this
Security resets (i) daily, each Business Day; (ii) weekly, the Wednesday of each
week (unless the Base Rate set forth on the face hereof is the Treasury Rate, in
which case the Tuesday of each week (except as provided below)); (iii) monthly,
the third Wednesday of each month; (iv) quarterly, the third Wednesday of each
of the four months set forth on the face hereof; (v) semiannually, the third
Wednesday of each of the two months set forth on the face hereof; and (vi)
annually, the third Wednesday of the month of each year set forth on the face
hereof; provided, however, that (a) if the first Interest Reset Date is later
than the Original Issue Date, the interest rate in effect from the Original
Issue Date to the first Interest Reset Date will be

<PAGE>   10

                                       3

the Initial Interest Rate as set forth on the face hereof and (b) the interest
rate in effect for the ten days immediately prior to the Maturity Date will be
that in effect on the tenth day preceding the Maturity Date. If the Base Rate
set forth on the face hereof is the Treasury Rate and a Treasury auction shall
fall on the Interest Reset Date for this Security, then such Interest Reset Date
shall instead be the first Business Day immediately following such Treasury
auction. If any Interest Reset Date would otherwise be a day that is not a
Business Day, such Interest Reset Date shall be postponed to the next succeeding
Business Day, except that, if the Base Rate set forth on the face hereof is
LIBOR, if such Business Day is in the next succeeding calendar month, such
Interest Reset Date shall be the immediately preceding Business Day.

                  The interest payable hereon on each Interest Payment Date and
on the Maturity Date shall be the amount of interest accrued from, and
including, the Original Issue Date or the next preceding Interest Payment Date
in respect of which interest, if any, has been paid or duly provided for, as the
case may be, to, but excluding, the next succeeding Interest Payment Date or the
Maturity Date, as the case may be (each such period, an "Interest Period"). If
the Maturity Date falls on a day which is not a Business Day, the payment of
principal, premium, if any, and interest, if any, with respect to the Maturity
Date will be paid on the next succeeding Business Day with the same force and
effect as if made on the Maturity Date, and no interest shall accrue on the
amount so payable as a result of such delayed payment. If an Interest Payment
Date other than the Maturity Date falls on a day that is not a Business Day,
such Interest Payment Date will be postponed to the next day that is a Business
Day and interest will accrue for the period of such postponement (except if the
Base Rate specified above is LIBOR, and such day falls in the next succeeding
calendar month, such Interest Payment Date will be advanced to the immediately
preceding Business Day), it being understood that, to the extent this sentence
is inconsistent with Section 112 of the Indenture, the provisions of this
sentence shall apply in lieu of such Section.

                  Accrued interest will be calculated by multiplying the
principal amount hereof by an accrued interest factor. Such accrued interest
factor will be computed by adding the interest factor calculated for each day in
the Interest Period or from the last date from which accrued interest is being
calculated. The interest factor for each such day is computed by dividing the
interest rate applicable on such day by 360, if the Base Rate set forth on the
face hereof is the CD Rate, Commercial Paper Rate, Federal Funds Rate, Prime
Rate or LIBOR (each as described below), or by the actual number of days in the
year, if the Base Rate set forth on the face hereof is the Treasury Rate or the
CMT Rate (each as described below). The interest rate applicable to any day that
is an Interest Reset Date is the interest rate as determined, in accordance with
the procedures hereinafter set forth, with respect to the Interest Determination
Date (as defined below) pertaining to such Interest Reset Date. The interest
rate applicable to any other day is the interest rate for the immediately
preceding Interest Reset Date (or, if none, the Initial Interest Rate, as set
forth on the face hereof).

                  All percentages resulting from any calculation with respect
hereto will be rounded, if necessary, to the nearest one hundred-thousandth of a
percentage point, with five one-millionths

<PAGE>   11

                                        4

of a percentage point rounded upward (e.g., 7.123455% (or 0.07123455) being
rounded to 7.12346% (or 0.0712346) and 7.123454% (or 0.07123454) being rounded
to 7.12345% (or 0.0712345)), and all currency amounts used in or resulting from
such calculation will be rounded to the nearest one-hundredth of a unit (with
five one-thousandths of a unit being rounded upwards).

                  Interest will be payable on, if this Security resets (i)
daily, weekly or monthly, the third Wednesday of each month; (ii) quarterly, the
third Wednesday of the four months set forth on the face hereof; (iii)
semiannually, the third Wednesday of the two months set forth on the face
hereof; and (iv) annually, the third Wednesday of the month set forth on the
face hereof (each, an "Interest Payment Date"), and in each case, on the
Maturity Date.

                  If the Base Rate set forth on the face hereof is the CD Rate,
the CMT Rate, the Commercial Paper Rate, the Federal Funds Rate or the Prime
Rate, the "Interest Determination Date" pertaining to an Interest Reset Date for
this Security will be the second Business Day immediately preceding such
Interest Reset Date; if the Base Rate set forth on the face hereof is LIBOR, the
"Interest Determination Date" pertaining to an Interest Reset Date for this
Security will be the second London Business Day immediately preceding such
Interest Reset Date unless the Designated LIBOR Currency is British pounds
sterling, in which case the "Interest Determination Date" will be such Interest
Reset Date; and if the Base Rate set forth on the face hereof is the Treasury
Rate, the "Interest Determination Date" pertaining to an Interest Reset Date for
this Security will be the day of the week in which such Interest Reset Date
falls on which Treasury bills (as defined below) would normally be auctioned.
Treasury bills are usually sold at auction on Monday of each week, unless that
day is a legal holiday, in which case the auction is usually held on the
following Tuesday, except that sometimes such auction may be held on the
preceding Friday. If, as the result of a legal holiday, an auction is so held on
the preceding Friday, such Friday will be the Interest Determination Date
pertaining to the Interest Reset Date occurring in the next succeeding week.

                  Unless otherwise set forth on the face hereof, the
"Calculation Date", where applicable, pertaining to an Interest Determination
Date is the earlier of (i) the tenth calendar day after such Interest
Determination Date or, if any such day is not a Business Day, the next
succeeding Business Day and (ii) the Business Day immediately preceding the
applicable Interest Payment Date or the Maturity Date, as the case may be.

                  The Company will appoint and enter into an agreement with an
agent (a "Calculation Agent") to calculate the rate of interest on the
Securities of this series which bear interest at a floating rate. Unless
otherwise set forth on the face hereof, The Chase Manhattan Bank will be the
Calculation Agent. At the request of the Holder hereof, the Calculation Agent
will provide the interest rate then in effect and, if determined, the interest
rate that will become effective on the next Interest Reset Date.

<PAGE>   12

                                       5

                  Subject to applicable provisions of law and except as
specified herein, with respect to each Interest Determination Date, the rate of
interest shall be the rate determined by the Calculation Agent in accordance
with the provisions of the applicable heading below.

                  Determination of CD Rate. If the Base Rate set forth on the
face hereof is the CD Rate, this Security will bear interest for each Interest
Reset Period at the interest rate calculated with reference to the CD Rate and
the Spread, Spread Multiplier or other formula, if any, set forth on the face
hereof. Unless otherwise set forth on the face hereof, the "CD Rate" means, with
respect to any Interest Determination Date pertaining thereto, the rate on such
date for negotiable certificates of deposit having the Index Maturity set forth
on the face hereof as published in H.15(519) (as defined below), under the
heading "CDs (secondary market)" or, if not yet published by 3:00 P.M., New York
City time, on the Calculation Date pertaining to such Interest Determination
Date, the CD Rate will be the rate on such Interest Determination Date for
negotiable certificates of deposit having the Index Maturity set forth on the
face hereof as published in H.15 Daily Update (as defined below) or such other
recognized electronic source used for the purpose of displaying such rate, under
the caption "CDs (secondary market)". If by 3:00 P.M., New York City time, on
the Calculation Date pertaining to such Interest Determination Date such rate is
not yet published in H.15(519), H.15 Daily Update or such other recognized
electronic source, the CD Rate on such Interest Determination Date will be
calculated by the Calculation Agent and will be the average of the secondary
market offered rates as of 10:00 A.M., New York City time, on such Interest
Determination Date, of three leading non-bank dealers in negotiable U.S. dollar
certificates of deposit in The City of New York selected by the Calculation
Agent (after consultation with the Company) for negotiable certificates of
deposit of major United States money market banks of the highest credit standing
(in the market for negotiable certificates of deposit) having a remaining
maturity closest to the Index Maturity set forth on the face hereof in a
denomination of U.S. $5,000,000; provided, however, that, if fewer than three
dealers are quoting as mentioned in this sentence, the interest rate for the
period commencing on the Interest Reset Date following such Interest
Determination Date will be the interest rate in effect on such Interest
Determination Date. "H.15(519)" means the weekly statistical release designated
as such, or any successor publication, published by the Board of Governors of
the Federal Reserve System. "H.15 Daily Update" means the daily update of
H.15(519), available through the world-wide web site of the Board of Governors
of the Federal Reserve System at http://www.bog.frb.fed.us/releases/h15/update,
or any successor site or publication.

                  Determination of Commercial Paper Rate. If the Base Rate set
forth on the face hereof is the Commercial Paper Rate, this Security will bear
interest for each Interest Reset Period at the interest rate calculated with
reference to the Commercial Paper Rate and the Spread, Spread Multiplier or
other formula , if any, set forth on the face hereof. Unless otherwise set forth
on the face hereof, the "Commercial Paper Rate" means, with respect to any
Interest Determination Date pertaining thereto, the Money Market Yield
(calculated as described below) of the rate on such date for commercial paper
having the Index Maturity set forth on the face

<PAGE>   13

                                       6

hereof, as such rate shall be published in H.15(519) under the caption
"Commercial Paper -- Nonfinancial" or, if not yet published by 3:00 P.M., New
York City time, on the Calculation Date pertaining to such Interest
Determination Date, the Commercial Paper Rate shall be the Money Market Yield of
the rate on such Interest Determination Date for commercial paper having the
Index Maturity set forth on the face hereof as published in H.15 Daily Update,
or such other recognized electronic source used for the purpose of displaying
such rate, under the caption "Commercial Paper -- Nonfinancial". If by 3:00
P.M., New York City time, on the Calculation Date pertaining to such Interest
Determination Date such rate is not yet published in H.15(519), H.15 Daily
Update or such other recognized electronic source, the Commercial Paper Rate on
such Interest Determination Date shall be calculated by the Calculation Agent
and shall be the Money Market Yield of the average of the offered rates as of
11:00 A.M., New York City time, on such Interest Determination Date of three
leading dealers in U.S. dollar commercial paper in The City of New York selected
by the Calculation Agent (after consultation with the Company) for commercial
paper having the Index Maturity set forth on the face hereof placed for an
industrial issuer whose bond rating is "Aa", or the equivalent, from a
nationally recognized securities rating agency; provided, however, that, if
fewer than three dealers are quoting as mentioned in this sentence, the interest
rate for the period commencing on the Interest Reset Date following such
Interest Determination Date will be the interest rate in effect on such Interest
Determination Date.

                  "Money Market Yield" shall be a yield (expressed as a
percentage) calculated in accordance with the following formula:

                  MONEY MARKET YIELD =       D   x   360   x 100
                                            -------------
                                            360 - (D x M)

where "D" refers to the applicable per annum rate for commercial paper quoted on
a bank discount basis and expressed as a decimal; and "M" refers to the actual
number of days in the Interest Period for which interest is being calculated.

                  Determination of Federal Funds Rate. If the Base Rate set
forth on the face hereof is the Federal Funds Rate, this Security will bear
interest for each Interest Reset Period at the interest rate calculated with
reference to the Federal Funds Rate and the Spread, Spread Multiplier or other
formula, if any, set forth on the face hereof. Unless otherwise set forth on the
face hereof, the "Federal Funds Rate" means, with respect to any Interest
Determination Date pertaining thereto, the rate on such date for federal funds
as published in H.15(519) under the caption "Federal Funds (Effective)" as such
rate is displayed on Telerate on page 120 (or any other page as may replace such
page on such service) ("Telerate Page 120"). If such rate does not appear on
Telerate Page 120 or is not yet published in H.15(519) by 3:00 P.M., New York
City time, on the Calculation Date pertaining to such Interest Determination
Date, the Federal Funds Rate will be the rate on such Interest Determination
Date as published in H.15 Daily Update, or

<PAGE>   14

                                      7

such other recognized electronic source used for the purpose of displaying such
rate, under the caption "Federal Funds (Effective)". If by 3:00 P.M., New York
City time, on the Calculation Date pertaining to such Interest Determination
Date such rate does not appear on Telerate Page 120 or is not yet published in
H.15(519), H.15 Daily Update or such other recognized electronic source, the
Federal Funds Rate for such Interest Determination Date will be calculated by
the Calculation Agent and will be the average of the rates for the last
transaction in overnight Federal Funds arranged by three leading dealers of
Federal Funds transactions in The City of New York, which dealers have been
selected by the Calculation Agent (after consultation with the Company), as of
9:00 A.M., New York City time, on such Interest Determination Date; provided,
however, that, if fewer than three dealers are quoting as mentioned in this
sentence, the interest rate for the period commencing on the Interest Reset Date
following such Interest Determination Date will be the interest rate in effect
on such Interest Determination Date.

                  Determination of LIBOR. If the Base Rate set forth on the face
hereof is LIBOR, this Security will bear interest for each Interest Reset Period
at the interest rate calculated with reference to LIBOR and the Spread, Spread
Multiplier or other formula, if any, set forth on the face hereof. Unless
otherwise set forth on the face hereof, "LIBOR" means the rate determined by the
Calculation Agent in accordance with the following provisions:

                  (i) If "LIBOR Reuters" is specified on the face hereof, LIBOR
         will be the average of the offered rates for deposits in the LIBOR
         Currency having the Index Maturity set forth on the face hereof on the
         applicable Interest Reset Date, as such rates appear on the Designated
         LIBOR Page as of 11:00 A.M., London time, on that Interest
         Determination Date, if at least two such offered rates appear on the
         Designated LIBOR Page.

                  (ii) If "LIBOR Telerate" is specified on the face hereof,
         LIBOR will be the rate for deposits in the LIBOR Currency having the
         Index Maturity set forth on the face hereof on the applicable Interest
         Reset Date, as such rate appears on the Designated LIBOR Page as of
         11:00 A.M., London time, on that Interest Determination Date. If such
         rate does not appear, LIBOR for such Interest Determination Date will
         be determined as described in (iii) below.

                  (iii) If the Designated LIBOR Page by its terms provides only
         for a single rate, that single rate will be used regardless of whether
         the foregoing provisions require more than one rate. With respect to an
         Interest Determination Date, if LIBOR Reuters is the applicable method
         for determining LIBOR and fewer than two offered rates (or no rate, if
         applicable) appear on the Designated LIBOR Page as specified in (i)
         above or if LIBOR Telerate is the applicable method for determining
         LIBOR and no rate appears on the Designated LIBOR Page as specified in
         (ii) above, then LIBOR will be determined on the basis of the offered
         rates at which deposits in the LIBOR Currency for the period of the
         Index Maturity set forth on the face hereof on the Interest
         Determination Date and in a

<PAGE>   15

                                       8

         principal amount that is representative of a single transaction in
         that market at that time are offered by four major banks in the London
         interbank market at approximately 11:00 AM., London time, for the
         period commencing on the Interest Reset Date to prime banks in the
         London interbank market. The Calculation Agent will select the four
         banks and request the principal London office of each of those banks to
         provide a quotation of its rate for deposits in the LIBOR Currency. If
         at least two quotations are provided, LIBOR for that Interest
         Determination Date will be the average of those quotations. If fewer
         than two quotations are provided as mentioned above, LIBOR will be the
         average of the rates quoted by three major banks in the Principal
         Financial Center selected by the Calculation Agent at approximately
         11:00 A.M. in the Principal Financial Center, on the Interest
         Determination Date for loans to leading European banks in the LIBOR
         Currency having the Index Maturity set forth on the face hereof, for
         the period commencing on the Interest Reset Date and in a principal
         amount that is representative for a single transaction in the LIBOR
         Currency in that market at that time. The Calculation Agent will select
         the three banks referred to above. If fewer than three banks selected
         by the Calculation Agent are quoting as mentioned above, the interest
         rate for the period commencing on the Interest Reset Date following
         such Interest Determination Date will be the interest rate in effect on
         such Interest Determination Date.

                  "LIBOR Currency" means the Designated LIBOR Currency specified
         on the face hereof as to which LIBOR shall be calculated or, if no such
         currency is specified on the face hereof, United States dollars.

                  "Designated LIBOR Page" means, if "LIBOR Reuters" is specified
         on the face hereof, the display on the Reuters Monitor Money Rates
         Service (or any successor service) on the page specified on the face
         hereof (or any other page as may replace such page on such service) for
         the purpose of displaying the London interbank rates of major banks for
         the LIBOR Currency; or if "LIBOR Telerate" is specified on the face
         hereof or neither "LIBOR Reuters" nor "LIBOR Telerate" is specified on
         the face hereof as the method of calculating LIBOR, the display on
         Bridge Telerate, Inc. (or any successor service, "Telerate") on the
         page specified on the face hereof (or any other page as may replace
         such page on such service) for the purpose of displaying the London
         interbank rates of major banks for the LIBOR Currency.

                  Determination of Prime Rate. If the Base Rate set forth on the
face hereof is the Prime Rate, this Security will bear interest for each
Interest Reset Period at the interest rate calculated with reference to the
Prime Rate and the Spread, Spread Multiplier or other formula, if any, set forth
on the face hereof. Unless otherwise set forth on the face hereof, the "Prime
Rate" means, with respect to any Interest Determination Date pertaining thereto,
the rate on such date as published in H.15(519) under the caption "Bank Prime
Loan" or, if not yet published by 3:00 P.M., New York City time, on the
Calculation Date pertaining to such Interest Determination Date, the rate on
such Interest Determination Date as published in H.15 Daily Update, or such

<PAGE>   16

                                       9

other recognized electronic source used for the purpose of displaying such rate,
under the caption "Bank Prime Loan."

                  If the rate is not published in H.15 (519), H.15 Daily Update
or another recognized electronic source by 3:00 P.M., New York City time, on the
Calculation Date, then the Calculation Agent will determine the Prime Rate to be
the average of the rates of interest publicly announced by each bank that
appears on the Reuters Screen US PRIME1 Page as that bank's prime rate or base
lending rate as in effect for that Interest Determination Date. If at least one
rate but fewer than four rates appear on the Reuters Screen US PRIME1 Page on
the Interest Determination Date, then the Prime Rate will be the average of the
prime rates or base lending rates quoted (on the basis of the actual number of
days in the year divided by a 360-day year) as of the close of business on the
Interest Determination Date by three major money center banks in the City of New
York selected by the Calculation Agent. If the banks selected by the Calculation
Agent are not quoting as mentioned above, the interest rate for the period
commencing on the Interest Reset Date following such Interest Determination Date
will be the interest rate in effect on such Interest Determination Date.

                  "Reuters Screen US PRIME1 Page" means the display designated
as Page "USPRIME1" on the Reuters Monitor Money Rates Service (or any successor
service, or such other page as may replace the USPRIME1 Page on that service)
for the purpose of displaying prime rates or base lending rates of major United
States banks.

                  Determination of Treasury Rate. If the Base Rate set forth on
the face hereof is the Treasury Rate, this Security will bear interest for each
Interest Reset Period at the interest rate calculated with reference to the
Treasury Rate and the Spread, Spread Multiplier or other formula, if any, set
forth on the face hereof. Unless otherwise set forth on the face hereof, the
"Treasury Rate" means, with respect to any Interest Determination Date
pertaining thereto, the rate for the auction of direct obligations of the United
States ("Treasury bills") held on such Interest Determination Date having the
Index Maturity set forth on the face hereof under the caption "INVESTMENT RATE"
on the display on Telerate on page 56 (or any other page as may replace such
page on such service) ("Telerate Page 56") or page 57 (or any other page as may
replace such page on such service) ("Telerate Page 57") by 3:00 P.M., New York
City time, on the Calculation date for that Interest Determination Date.

                  The following procedures will be followed if the Treasury Rate
cannot be determined as described above:

                  If the rate is not published by 3:00 P.M., New York City time,
on the Calculation Date, the Treasury Rate will be the Bond Equivalent Yield of
the auction rate of such Treasury bills as published in H.15 Daily Update or
such recognized electronic source used for the purpose of displaying such rate
under the caption "U.S. Government securities/Treasury bills/Auction high."

<PAGE>   17

                                       10

                  If the rate is not published by 3:00 P.M., New York City time,
on the Calculation Date and cannot be determined as described in the immediately
preceding paragraph, the Treasury Rate will be the Bond Equivalent Yield of the
auction rate of such Treasury bills as otherwise announced by the United States
Department of Treasury.

                  If the results of the most recent auction of Treasury bills
having the Index Maturity set forth on the face hereof are not published or
announced as described above by 3:00 P.M., New York City time, on the
Calculation Date, or if no auction is held on the Interest Determination Date,
then the Treasury Rate will be the Bond Equivalent Yield on such Interest
Determination Date of Treasury bills having the Index Maturity set forth on the
face hereof as published in H.15(519) under the caption "U.S. Government
securities/Treasury bills/Secondary market" or, if not yet published by 3:00
p.m., New York City time, on the related Calculation Date, the rate on such
Interest Determination Date of such Treasury Bills as published in H.15 Daily
Update, or such other recognized electronic source used for the purpose of
displaying such rate, under the caption "U.S. Government securities/Treasury
bills/Secondary market."

                  If such rate is not published in H.15 (519), H.15 Daily Update
or another recognized electronic source, then the Calculation Agent will
determine the Treasury Rate to be the Bond Equivalent Yield of the average of
the secondary market bid rates, as of approximately 3:30 P.M., New York City
time, on the Interest Determination Date of three leading primary United States
government securities dealers for the issue of Treasury bills with a remaining
maturity closest to the Index Maturity set forth on the face hereof. The
Calculation Agent will select the three dealers referred to above.

                  If fewer than three dealers are quoting as described above,
the interest rate for the period commencing on the Interest Reset Date following
such Interest Determination Date will be the interest rate in effect on such
Interest Determination Date.

                  "Bond Equivalent Yield" means a yield (expressed as a
percentage) calculated in accordance with the following formula:

                                                    D  x  N      X 100
                  Bond Equivalent Yield      =  ---------------
                                                360 - (D  x  M)

where "D" refers to the applicable per annum rate for Treasury bills quoted on a
bank discount basis, "N" refers to 365 or 366, as the case may be, and "M"
refers to the actual number of days in the applicable Interest Reset Period.

                  Determination of CMT Rate. If the Base Rate set forth on the
face hereof is the CMT Rate, this Security will bear interest for each Interest
Reset Period at the interest rate calculated with reference to the CMT Rate and
the Spread, Spread Multiplier, or other formula, if any, set forth on the face
hereof. Unless otherwise set forth on the face hereof, the "CMT Rate" means,
with respect to any Interest Determination Date pertaining thereto, the rate
displayed on

<PAGE>   18

                                       11

the Designated CMT Telerate Page (as defined below) under the caption ". . .
Treasury Constant Maturities . . . Federal Reserve Board Release H.15 . . .
Mondays Approximately 3:45 P.M.", under the column for the Designated CMT
Maturity Index (as defined below) for (i) if the Designated CMT Telerate Page is
7051 or any successor page, the rate on such Interest Determination Date and
(ii) if the Designated CMT Telerate Page is 7052 or any successor page, the rate
for the weekly or the monthly average, as applicable, ended immediately
preceding the week or month in which the related Interest Determination Date
occurs. If such rate is no longer displayed on the relevant page, or if not
displayed by 3:00 P.M., New York City time, on the Calculation Date pertaining
to such Interest Determination Date, then the interest rate for such Interest
Determination Date shall be the rate for the Designated CMT Maturity Index as
published in H.15(519). If such rate is no longer published, or if not published
by 3:00 P.M., New York City time, on the Calculation Date pertaining to such
Interest Determination Date, then the interest rate for such Interest
Determination Date shall be the rate for the Designated CMT Maturity Index (or
other United States Treasury rate for the Designated CMT Maturity Index) as may
then be published by either the Board of Governors of the Federal Reserve System
or the United States Department of the Treasury that the Calculation Agent
determines (with the concurrence of the Company) to be comparable to the rate
formerly displayed on the Designated CMT Telerate Page and published in
H.15(519). If such information is not provided by 3:00 P.M., New York City time,
on the Calculation Date pertaining to such Interest Determination Date, then the
interest rate for such Interest Determination Date shall be calculated by the
Calculation Agent and shall be a yield to maturity, based on the arithmetic
average of the secondary market closing offer side prices as of approximately
3:30 P.M., New York City time, on such Interest Determination Date, reported by
three leading primary United States government securities dealers (each, a
"Reference Dealer") in The City of New York, for the most recently issued direct
noncallable fixed rate obligations of the United States ("U.S. Treasury Notes")
with an original maturity of approximately the Designated CMT Maturity Index and
a remaining term to maturity of not less than such Designated CMT Maturity Index
minus one year. The three Reference Dealers shall be determined by (i) the
selection of five Reference Dealers by the Calculation Agent (after consultation
with the Company) and (ii) the elimination of the Reference Dealers providing
the highest (or, in the event of equality, one of the highest) and the lowest
(or, in the event of equality, one of the lowest) quotations for such Interest
Determination Date. If the Calculation Agent cannot obtain three such U.S.
Treasury Note quotations, the interest rate for such Interest Determination Date
shall be calculated by the Calculation Agent and shall be a yield to maturity
based on the arithmetic average of the secondary market offer side prices as of
approximately 3:30 P.M., New York City time, on the Interest Determination Date
reported, according to their written records, by three Reference Dealers in The
City of New York, selected in the manner described above, for U.S. Treasury
Notes with an original maturity of the number of years that is the next highest
to the Designated CMT Maturity Index and a remaining term to maturity closest to
the Designated CMT Maturity Index, which has an outstanding balance of at least
$100 million. If only three or four of such Reference Dealers are quoting as
described above, then the interest rate shall be based on the arithmetic average
of the offer side prices so obtained from all such Reference Dealers, without
eliminating the Reference

<PAGE>   19

                                       12

Dealers providing the highest and the lowest of such quotes. If fewer than three
such Reference Dealers are quoting as described above, the interest rate for the
period commencing on the Interest Reset Date following such Interest
Determination Date will be the interest rate in effect on such Interest
Determination Date. If two such U.S. Treasury Notes have remaining terms to
maturity equally close to the Designated CMT Maturity Index, the quotes for the
U.S. Treasury Note with the shorter remaining term to maturity shall be used.

                  "Designated CMT Telerate Page" means the display on Telerate
         on the page set forth on the face hereof (or any other page as may
         replace such page on that service for the purpose of displaying
         treasury constant maturities as reported in H.15(519)). If no such page
         is so specified, the Designated CMT Telerate Page shall be 7052.

                  "Designated CMT Maturity Index" means the original period to
         maturity of the U.S. Treasury securities (either 1, 2, 3, 5, 7, 10, 20
         or 30 years) specified on the face hereof with respect to which the CMT
         Rate will be calculated. If no such maturity is so specified, the
         Designated CMT Maturity Index shall be two years.

                  References herein to "U.S. dollars" or "U.S. $" or "$" are to
the currency of the United States of America.

                  Section 4. Redemption. If so specified on the face hereof, the
Company may at its option redeem this Security in whole or from time to time in
part in increments of $1,000 (provided that any remaining principal amount of
this Security shall not be less than the Minimum Denomination specified on the
face hereof) on or after the date designated as the Initial Redemption Date on
the face hereof at 100% of the unpaid principal amount hereof or the portion
thereof redeemed (or, if this Security is a Discount Security, such lesser
amount as is provided for below) multiplied by the Initial Redemption Percentage
specified on the face hereof, together with accrued interest to the Redemption
Date. Such Initial Redemption Percentage shall decline at each anniversary of
the Initial Redemption Date by an amount equal to the Annual Redemption
Percentage Reduction, if any, specified on the face hereof until the Redemption
Price is 100% of the unpaid principal amount hereof. The Company may exercise
such option by causing the Trustee to mail a notice of such redemption at least
30 but not more than 60 days prior to the Redemption Date. In the event of
redemption of this Security in part only, a new Security or Securities for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon
the cancellation hereof. If less than all of the Securities with like tenor and
terms to this Security are to be redeemed, the Securities to be redeemed shall
be selected by the Trustee by such method as the Trustee shall deem fair and
appropriate. However, if less than all the Securities of the series with
differing tenor and terms to this Security are to be redeemed, then the Company
in its sole discretion shall select the particular Securities to be redeemed and
shall notify the Trustee in writing thereof at least 45 days prior to the
relevant Redemption Date.

<PAGE>   20

                                       13

                  Section 5. Repayment. If so specified on the face hereof, this
Security shall be repayable prior to the Stated Maturity Date at the option of
the Holder on each applicable Optional Repayment Date shown on the face hereof
at a repayment price equal to 100% of the principal amount to be repaid,
together with accrued interest to the Repayment Date. In order for this Security
to be repaid, the Trustee must receive at least 30 but not more than 45 days
prior to an Optional Repayment Date, this Security with the form attached hereto
entitled "Option to Elect Repayment" duly completed. Any tender of this Security
for repayment shall be irrevocable. The repayment option may be exercised by the
Holder of this Security in whole or in part in increments of $1,000 (provided
that any remaining principal amount of this Security shall not be less than the
Minimum Denomination specified on the face hereof). Upon any partial repayment,
this Security shall be canceled and a new Security or Securities for the
remaining principal amount hereof shall be issued in the name of the Holder of
this Security.

                  Section 6. Discount Securities. If this Security (such
Security being referred to as a "Discount Security") (a) has been issued at an
Issue Price lower, by more than a de minimis amount (as determined under United
States federal income tax rules applicable to original issue discount
instruments), than the stated redemption price at maturity (as defined below)
hereof and (b) would be considered an original issue discount security for
United States federal income tax purposes, then the amount payable on this
Security in the event of redemption by the Company, repayment at the option of
the Holder or acceleration of the maturity hereof, in lieu of the principal
amount due at the Stated Maturity Date hereof, shall be the Amortized Face
Amount (as defined below) of this Security as of the date of such redemption,
repayment or acceleration. The "Amortized Face Amount" of this Security shall be
the amount equal to the sum of (a) the Issue Price (as set forth on the face
hereof) plus (b) the aggregate of the portions of the original issue discount
(the excess of the amounts considered as part of the "stated redemption price at
maturity" of this Security within the meaning of Section 1273(a)(2) of the
Internal Revenue Code of 1986, as amended (the "Code"), whether denominated as
principal or interest, over the Issue Price of this Security) which shall
theretofore have accrued pursuant to Section 1272 of the Code (without regard to
Section 1272(a)(7) of the Code) from the date of issue of this Security to the
date of determination, minus (c) any amount considered as part of the "stated
redemption price at maturity" of this Security which has been paid on this
Security from the date of issue to the date of determination.

                  Section 7. Modification and Waivers; Obligation of the Company
Absolute. The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series. Such
amendment may be effected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in principal
amount of all Outstanding Securities of each series affected thereby. The
Indenture also contains provisions permitting the Holders of not less than a
majority in principal amount of the Outstanding Securities of any series at the
time, on behalf of the Holders of all Outstanding Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture.
Provisions in the

<PAGE>   21

                                       14

Indenture also permit the Holders of not less than a majority in principal
amount of all Outstanding Securities of any series to waive on behalf of all of
the Holders of Securities of such series certain past defaults under the
Indenture and their consequences. Any such consent or waiver shall be conclusive
and binding upon the Holder of this Security and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

                  The Securities are unsecured and rank pari passu with all
other unsecured and unsubordinated indebtedness of the Company.

                  No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest on this Security at the times, place and rate, and
in the Specified Currency herein prescribed, except as set forth in Section 2 on
the reverse hereof.

                  Section 8. Defeasance and Covenant Defeasance. The Indenture
contains provisions for defeasance at any time of (a) the entire indebtedness of
the Company on this Security and (b) certain restrictive covenants and the
related defaults and Events of Default, upon compliance by the Company with
certain conditions set forth therein, which provisions apply to this Security,
unless otherwise specified on the face hereof.

                  Section 9. Minimum Denomination. Unless otherwise provided on
the face hereof, this Security is issuable only in registered form without
coupons in denominations of $1,000 or any amount in excess thereof which is an
integral multiple of $1,000. If this Security is denominated in a Specified
Currency other than U.S. dollars or is a Discount Security, this Security shall
be issuable in the denominations set forth on the face hereof.

                  Section 10. Registration of Transfer. As provided in the
Indenture and subject to certain limitations herein and therein set forth, the
transfer of this Security is registrable in the Security Register upon surrender
of this Security for registration of transfer at a Place of Payment for the
series of Securities of which this Security is a part, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series, of like authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

                  If the registered owner of this Security is the Depository
(such a Security being referred to as a "Global Security") and (i) the
Depository is at any time unwilling or unable to continue as depository and a
successor depository is not appointed by the Company within 90 days following
notice to the Company or (ii) an Event of Default occurs, the Company will

<PAGE>   22

                                       15

issue Securities in certificated form in exchange for this Global Security. In
addition, the Company may at any time, and in its sole discretion, determine not
to have Securities represented by a Global Security and, in such event, will
issue Securities in certificated form in exchange in whole for this Global
Security representing such Security. In any exchange pursuant to this paragraph,
the Company will execute, and the Trustee, upon receipt of a Company Order for
the authentication and delivery of individual Securities of this series in
exchange for this Global Security, will authenticate and deliver individual
Securities of this series in certificated form in an aggregate principal amount
equal to the principal amount of this Global Security in exchange herefor.
Securities issued in exchange for this Global Security pursuant to this
paragraph shall be registered in such names and in such authorized denominations
as the Depository, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. None of the Company, the
Trustee, any Paying Agent or the Security Registrar will have any responsibility
or liability for any aspect of the records relating to or payments made on
account of beneficial ownership interests in this Global Security or for
maintaining, supervising or reviewing any records relating to such beneficial
ownership interests. For purposes of the Indenture, this Global Security
constitutes a Security issued in permanent global form. Securities so issued in
certificated form will be issued in denominations of $1,000 (or such other
Minimum Denomination specified on the face hereof) or any amount in excess
thereof which is an integral multiple of $1,000 (or such Minimum Denomination)
and will be issued in registered form only, without coupons.

                  As provided in the Indenture and subject to certain
limitations therein and herein set forth, this Security is exchangeable for a
like aggregate principal amount of Securities of this series of different
authorized denominations but otherwise having the same terms and conditions, as
requested by the Holder hereof surrendering the same.

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

                  Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Holder as the owner hereof for all purposes, whether or not this
Security be overdue, and none of the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.

                  Section 11. Events of Default. If an Event of Default with
respect to the Securities of the series of which this Security forms a part
shall have occurred and be continuing, the principal of this Security may be
declared due and payable in the manner and with the effect provided in the
Indenture.

<PAGE>   23

                                       16

                  Section 12. Defined Terms. All terms used in this Security
which are defined in the Indenture and are not otherwise defined herein shall
have the meanings assigned to them in the Indenture.

                  Section 13. Governing Law. Unless otherwise specified on the
face hereof, this Security shall be governed by and construed in accordance with
the law of the State of New York.

<PAGE>   24

                            OPTION TO ELECT REPAYMENT

                  The undersigned hereby irrevocably requests and instructs the
Company to repay this Security (or the portion thereof specified below),
pursuant to its terms, on the "Optional Repayment Date" first occurring after
the date of receipt of this Security as specified below (the "Repayment Date"),
at a Repayment Price equal to 100% of the principal amount thereof, together
with interest thereon accrued to the Repayment Date, to the undersigned at:

___________________________________

____________________________________
(Please Print or Type Name and Address of the Undersigned.)

                  For this Option to Elect Repayment to be effective, this
Security with the Option to Elect Repayment duly completed must be received at
least 30 but not more than 45 days prior to the Optional Repayment Date (or, if
such Repayment Date is not a Business Day, the next succeeding Business Day) by
the Company at its office or agency in The City of New York, which will be
located initially at the office of the Trustee at 450 West 33rd Street, New
York, New York 10001-2697.

                  If less than the entire principal amount of this Security is
to be repaid, specify the portion thereof (which shall be $1,000 or an integral
multiple thereof) which is to be repaid:
$           .

                  If less than the entire principal amount of this Security is
to be repaid, specify the denomination(s) of the Security(ies) to be issued for
the unpaid amount ($1,000 or any integral multiple of $1,000; provided that any
remaining principal amount of this Security shall not be less than the Minimum
Denomination): $             .

Dated: __________________

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

<PAGE>   25

                                  _____________

                                  ABBREVIATIONS

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

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

           UNIF GIFT MIN ACT -          Custodian
                              ----------------------------------------------
                                         (Cust.)             (Minor)

                        Under Uniform Gifts to Minors Act
                        .................................
                                     (State)

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

                                        ________________

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

PLEASE INSERT SOCIAL SECURITY OR OTHER
    IDENTIFYING NUMBER OF ASSIGNEE

_______________________________________
|                                     |
|                                     |
|_____________________________________|________________________________________
      Please print or type name and address, including zip code of assignee

_______________________________________________________________________________
the within Security of EATON CORPORATION and all rights thereunder and does
hereby irrevocably constitute and appoint

______________________________________________________________________Attorney
to transfer the said Security on the books of the within-named Company, with
full power of substitution in the premises.

Dated _________________

SIGNATURE GUARANTEED:                   _______________________________________

                              _________________________________________________
                              NOTICE: The signature to this assignment must
                              correspond with the name as it appears upon the
                              face of the Security in every particular, without
                              alteration or enlargement or any change
                              whatsoever.<PAGE>   1

                                                                    Exhibit 4(k)

                                 [FACE OF NOTE]

CUSIP NO.

REGISTERED                                                          FACE AMOUNT
PRINCIPAL AMOUNT
No. FX -

                                EATON CORPORATION
                                MEDIUM-TERM NOTE
                              (SINGLE INDEXED NOTE)
                                  (FIXED RATE)

                  If the registered owner of this Security (as indicated below)
is The Depository Trust Company (the "Depository") or a nominee of the
Depository, this Security is a Global Security and the following two legends
apply:

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY, ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT
AS A WHOLE BY THE DEPOSITORY TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH
NOMINEE TO A SUCCESSOR OF THE DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR.

IF APPLICABLE, THE "TOTAL AMOUNT OF OID", "YIELD TO MATURITY" AND "INITIAL
ACCRUAL PERIOD OID" (COMPUTED UNDER THE APPROXIMATE METHOD) BELOW WILL BE
COMPLETED SOLELY FOR THE PURPOSES OF APPLYING THE FEDERAL INCOME TAX ORIGINAL
ISSUE DISCOUNT ("OID") RULES.

<PAGE>   2

                                        2

ISSUE PRICE:                              SINKING FUND:

ORIGINAL ISSUE DATE:                      OPTION TO ELECT REPAYMENT:
                                          [ ] YES   [ ] NO

STATED MATURITY DATE:

SPECIFIED CURRENCY:
United States Dollars:                    OPTIONAL REPAYMENT DATE[S]:
  [ ] YES   [ ] NO

Foreign Currency:
                                          MINIMUM DENOMINATIONS:
                                          [ ] $1,000
EXCHANGE RATE AGENT:                      [ ] Other:

OPTION TO RECEIVE PAYMENTS IN
SPECIFIED CURRENCY OTHER THAN
U.S. DOLLARS:    [ ] YES   [ ] NO         ADDITIONAL AMOUNTS:

INTEREST RATE:
                                          DEFEASANCE:  [ ] YES   [ ] NO
INDEXED CURRENCY:

United States Dollars: [ ] YES [ ] NO     COVENANT DEFEASANCE:  [ ] YES  [ ] NO

Foreign Currency:
                                          TOTAL AMOUNT OF OID:
PRINCIPAL FINANCIAL CENTER:

BASE EXCHANGE RATE:                       YIELD TO MATURITY:

DETERMINATION AGENT:
                                          INITIAL ACCRUAL PERIOD OID:

REFERENCE DEALERS:
1. ___
2. ___
3. ___

INTEREST PAYMENT DATES IF OTHER
THAN APRIL 15 AND OCTOBER 15:

REGULAR RECORD DATES IF OTHER
THAN APRIL 1 AND OCTOBER 1:

OPTIONAL REDEMPTION:  [ ] YES   [ ] NO

INITIAL REDEMPTION DATE:

INITIAL REDEMPTION PERCENTAGE:

ANNUAL REDEMPTION PERCENTAGE REDUCTION:

OTHER/DIFFERENT PROVISIONS:

<PAGE>   3

                  EATON CORPORATION, an Ohio corporation (herein referred to as
the "Company", which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to

____________________, or registered assigns, in the Specified Currency on the
Stated Maturity Date shown above (except to the extent redeemed or repaid prior
to the Stated Maturity Date), the principal sum of _______ (the "Face Amount"),
plus or minus an amount determined by the Determination Agent specified above in
accordance with the formula set forth below, and to pay interest on the Face
Amount as described below and on the reverse hereof.

                  If the Spot Rate exceeds or equals the Base Exchange Rate, the
principal amount of this Security payable on the Maturity Date (as defined
below) shall equal:

         Face Amount  +   (Face Amount  x       Spot Rate - Base Exchange Rate)
                                                ------------------------------
                                                      Base Exchange Rate

                  If the Base Exchange Rate exceeds the Spot Rate, the principal
amount of this Security payable on the Maturity Date shall equal:

         Face Amount  -  (Face Amount  x        Base Exchange Rate - Spot Rate)
                                                ------------------------------
                                                      Base Exchange Rate

; provided, however, that in no event shall such principal amount be less than
zero.

                  In making the above calculations, the (i) "Base Exchange Rate"
is the exchange rate specified as such above and (ii) "Spot Rate" is the rate at
which the Specified Currency can be exchanged for the Indexed Currency specified
above (such rate stated as units of Indexed Currency per unit of the Specified
Currency) as determined on the second Exchange Rate Day, as defined below, prior
to the Maturity Date (the "Determination Date") by the Determination Agent based
upon the arithmetic mean of the open market spot offer quotations for such
Indexed Currency (spot bid quotations for the Specified Currency) obtained by
the Determination Agent from the Reference Dealers specified above in The City
of New York at 11:00 A.M., New York City time, on the Determination Date, for an
amount of Indexed Currency equal to the Face Amount of this Security multiplied
by the Base Exchange Rate, in terms of the Specified

<PAGE>   4

                                        2

Currency for settlement on the Maturity Date. If such quotations from the
Reference Dealers are not available on the Determination Date due to
circumstances beyond the control of the Company or the Determination Agent, the
Spot Rate will be determined on the basis of the most recently available
quotations from the Reference Dealers. If any of the Reference Dealers shall be
unwilling or unable to provide the requested quotations, the Company may select
other major money center bank or banks in The City of New York, in consultation
with the Determination Agent, to act as Reference Dealer or Dealers in
replacement therefor. In the absence of manifest error, the determination by the
Determination Agent of the Spot Rate and the principal amount of this Security
payable on the Maturity Date shall be final and binding on the Company, the
Trustee (referred to on the reverse hereof) and the Holder (as defined below) of
this Security.

         "Exchange Rate Day" means any day which is a Business Day in The City
of New York and, if the Specified Currency or Indexed Currency is any currency
or currency unit other than U.S. dollars, in Principal Financial Center of the
country of such Specified Currency or Indexed Currency.

                  The Company shall pay interest on the Face Amount hereof at
the Interest Rate shown above from the Original Issue Date shown above or from
the most recent Interest Payment Date to which interest has been paid or duly
provided for, semiannually on April 15 and October 15 of each year (unless other
Interest Payment Dates are shown on the face hereof) (each, an "Interest Payment
Date") until the principal hereof is paid or made available for payment and on
the Stated Maturity Date, any Redemption Date or Repayment Date (such terms are
together hereinafter referred to as the "Maturity Date" with respect to the
principal repayable on such date); provided, however, that any payment of
principal (or premium, if any) or interest, if any, to be made on any Interest
Payment Date or on the Maturity Date that is not a Business Day (as defined
below) shall be made on the next succeeding Business Day with the same force and
effect as if made on such Interest Payment Date or the Maturity Date, as the
case may be, and no additional interest shall accrue on the amount so payable as
a result of such delayed payment. For purposes of this Security, unless
otherwise specified on the face hereof, "Business Day" means any day that is not
a Saturday or Sunday and that is neither a legal holiday nor a day on which
commercial banks are authorized or required by law, regulation or executive
order to close in The City of New York; provided, however, that, if the
Specified Currency shown above is a foreign currency, such day is also not a day
on which commercial banks are authorized or required by law, regulation or
executive order to close in the Principal Financial Center (as defined below) of
the country issuing the Specified Currency (or, if the Specified Currency is the
euro, such day is also a day on which the Trans-European Automated Real-Time
Gross Settlement Express Transfer (TARGET) System is open). "Principal Financial
Center" means the capital city of the country issuing the Specified Currency or
the Indexed Currency, as the case may be, except that with respect to United
States dollars, Australian dollars, Canadian dollars, Deutsche marks, Dutch
guilders, South African rand and Swiss francs, the "Principal Financial

<PAGE>   5

                                        3

Center" shall be The City of New York, Sydney and (solely in the case of the
Specified Currency) Melbourne, Toronto, Frankfurt, Amsterdam, Johannesburg and
Zurich, respectively.

                  Any interest hereon will accrue from, and including, the
immediately preceding Interest Payment Date in respect of which interest, if
any, has been paid or duly provided for (or from, and including, the Original
Issue Date if no interest has been paid or duly provided for) to, but excluding,
the succeeding Interest Payment Date or the Maturity Date, as the case may be.
The interest, if any, so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in the Indenture and subject to
certain exceptions described herein (referred to on the reverse hereof), be paid
to the person (the "Holder") in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the April 1 or
October 1 (whether or not a Business Day), as the case may be, next preceding
such Interest Payment Date (unless other Regular Record Dates are specified on
the face hereof) (each, a "Regular Record Date"); provided, however, that, if
this Security was issued between a Regular Record Date and the initial Interest
Payment Date relating to such Regular Record Date, interest, if any, for the
period beginning on the Original Issue Date and ending on such initial Interest
Payment Date shall be paid on the Interest Payment Date following the next
succeeding Regular Record Date to the Holder hereof on such next succeeding
Regular Record Date; and provided further that interest, if any, payable on the
Maturity Date will be payable to the person to whom the principal hereof shall
be payable. Any such interest not so punctually paid or duly provided for on any
Interest Payment Date other than the Maturity Date ("Defaulted Interest") will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a special
record date (the "Special Record Date") for the payment of such Defaulted
Interest to be fixed by the Trustee (referred to on the reverse hereof), notice
whereof shall be given to the Holder of this Security not less than ten days
prior to such Special Record Date, or may be paid at any time in any other
lawful manner, all as more fully provided in the Indenture.

                  Unless otherwise specified above, all payments in respect of
this Security will be made in U.S. dollars regardless of the Specified Currency
shown above unless the Holder hereof makes the election described below. If the
Specified Currency shown above is other than U.S. dollars, the Exchange Rate
Agent (referred to on the reverse hereof) will arrange to convert any such
amounts so payable in respect hereof into U.S. dollars in the manner described
on the reverse hereof; provided, however, that the Holder hereof may, if so
indicated above, elect to receive all or a specified portion of any payment of
principal, premium, if any, and/or interest, if any, in respect of this Security
in such Specified Currency by delivery of a written request to the corporate
trust office of the Trustee in The City of New York, on or prior to the
applicable Regular Record Date or at least fifteen days prior to the Maturity
Date, as the case may be. Such request may be in writing (mailed or hand
delivered) or by cable, telex or other form of facsimile transmission. The
Holder hereof may elect to receive payment in such Specified Currency for all

<PAGE>   6

                                        4

principal, premium, if any, and interest payments, if any, and need not file a
separate election for each payment. Such election will remain in effect until
revoked by written notice to the Trustee, but written notice of any such
revocation must be received by the Trustee on or prior to the applicable Regular
Record Date or at least fifteen days prior to the Maturity Date, as the case may
be.

                  Notwithstanding the foregoing, if the Company determines that
the Specified Currency is not available for making payments in respect hereof
due to the imposition of exchange controls or other circumstances beyond the
Company's control, or is no longer used by the government of the country issuing
such currency or for the settlement of transactions by public institutions of or
within the international banking community, then the Holder hereof may not so
elect to receive payments in the Specified Currency and any such outstanding
election shall be automatically suspended, until the Company determines that the
Specified Currency is again available for making such payments. Any payment made
under such circumstances in U.S. dollars where the required payment is in a
Specified Currency will not constitute a default under the Indenture.

                  In the event of an official redenomination of the Specified
Currency, the obligations of the Company with respect to payments on this
Security shall be deemed, immediately following such redenomination, to provide
for payment of that amount of redenominated currency representing the amount of
such obligations immediately before such redenomination. Except as set forth
above, in no event shall any adjustment be made to any amount payable hereunder
as a result of any change in the value of the Specified Currency shown above
relative to any other currency due solely to fluctuations in exchange rates.

                  Until this Security is paid in full or payment therefor in
full is duly provided for, the Company will at all times maintain a Paying Agent
(which Paying Agent may be the Trustee) in The City of New York (which, unless
otherwise specified above, shall be the "Place of Payment"). The Company has
initially appointed The Chase Manhattan Bank, at its office in The City of New
York as Paying Agent.

                  Unless otherwise shown above, payment of interest on this
Security (other than on the Maturity Date) will be made by check mailed to the
registered address of the Holder hereof as of the Regular Record Date; provided,
however, that, if (i) the Specified Currency is U.S. dollars and this is a
Global Security (as defined on the reverse hereof) or (ii) the Specified
Currency is a Foreign Currency, and the Holder has elected to receive payments
in such Specified Currency as provided for above, such interest payments will be
made by transfer of immediately available funds, but only if appropriate wire
transfer instructions have been received in writing by the Trustee on or prior
to the applicable Regular Record Date. Simultaneously with any election by the
Holder hereof to receive payments in respect hereof in the Specified Currency
(if other than U.S. dollars), such Holder may provide appropriate wire transfer
instructions to the Trustee, and

<PAGE>   7

                                        5

all such payments will be made in immediately available funds to an account
maintained by the payee with a bank, but only if such bank has appropriate
facilities therefor. Unless otherwise specified above, the principal hereof (and
premium, if any) and interest, if any, hereon payable on the Maturity Date will
be paid in immediately available funds upon surrender of this Security at the
office of the Trustee maintained for that purpose in the Borough of Manhattan,
The City of New York (or at such other location as may be specified above). The
Company will pay any administrative costs imposed by banks in making payments in
immediately available funds but, except as otherwise provided under Additional
Amounts above, any tax, assessment or governmental charge imposed upon payments
will be borne by the Holders of the Securities in respect of which such payments
are made.

                  Interest on this Security, if any, will be computed on the
basis of a 360-day year of twelve 30-day months.

                  REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
SECURITY SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

<PAGE>   8

                                        6

                  Unless the certificate of authentication hereon has been
executed by the Trustee by manual signature, this Security shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any purpose.

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

                                            EATON CORPORATION

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

                                            By:
                                               ---------------------------------
                                               Name:
                                               Title:
[CORPORATE SEAL]

Attest:
       ---------------------------------
       Name:
       Title: Secretary

                  TRUSTEE'S CERTIFICATE  OF AUTHENTICATION

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

Dated:                              THE CHASE MANHATTAN BANK,
                                          as Trustee

                                            By:
                                               ---------------------------------
                                               Authorized Officer

<PAGE>   9

                                [REVERSE OF NOTE]

                                EATON CORPORATION
                                MEDIUM-TERM NOTE

                  Section 1. General. This Security is one of a duly authorized
issue of securities (herein called the "Securities") of the Company, issued and
to be issued in one or more series under an indenture, dated as of April 1,
1994, as it may be supplemented from time to time (herein called the
"Indenture"), between the Company and The Chase Manhattan Bank (formerly known
as Chemical Bank), Trustee (herein called the "Trustee", which term includes any
successor trustee under the Indenture with respect to a series of which this
Security is a part), to which Indenture and all indentures supplemental thereto,
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof, limited in aggregate principal amount to
U.S.$800,000,000 (or the equivalent thereof in one or more foreign currencies)
or such other principal amount as shall be provided pursuant to the Indenture.

                  Section 2. Payments. If the Specified Currency is other than
U.S. dollars and the Holder hereof fails to elect payment in such Specified
Currency in accordance with the procedures set forth on the face hereof, the
amount of U.S. dollar payments to be made in respect hereof will be determined
by the Exchange Rate Agent specified on the face hereof or a successor thereto
(the "Exchange Rate Agent") based on the highest bid quotation in The City of
New York at approximately 11:00 A.M., New York City time, on the second Business
Day preceding the applicable payment date received by the Exchange Rate Agent
from three recognized foreign exchange dealers (one of whom may be the Exchange
Rate Agent) selected by the Exchange Rate Agent and approved by the Company for
the purchase by the quoting dealer of the Specified Currency for U.S. dollars
for settlement on such payment date in the aggregate amount of the Specified
Currency payable to all holders of Securities scheduled to receive U.S. dollar
payments and at which the applicable dealer commits to execute a contract. If
three such bid quotations are not available, payments will be made in the
Specified Currency.

                  If the Specified Currency is other than U.S. dollars and the
Holder hereof has elected payment in such Specified Currency in accordance with
the procedures set forth on the face hereof and the Specified Currency is not
available due to the imposition of exchange controls or to other circumstances
beyond the Company's control, the Company will be entitled to satisfy its
obligations to the Holder of this Security by making such payment in U.S.
dollars on the basis of the noon buying rate in The City of New York for cable
transfers of such Specified Currency as certified for customs purposes (or, if
not so certified, as otherwise determined) by

<PAGE>   10

                                        2

the Federal Reserve Bank of New York (the "Market Exchange Rate")as computed by
the Exchange Rate Agent on the second Business Day prior to the applicable
payment date or, if the Market Exchange Rate is then not available, on the basis
of the most recently available Market Exchange Rate or as otherwise indicated
above. Any payment made under such circumstances in U.S. dollars where the
required payment is in a Specified Currency will not constitute a default under
the Indenture.

                  All determinations referred to above made by the Exchange Rate
Agent shall be at its sole discretion (except to the extent expressly provided
that any determination is subject to approval by the Company) and, in the
absence of manifest error, shall be conclusive for all purposes and binding on
the Holder of this Security, and the Exchange Rate Agent shall have no liability
therefor.

                  All currency exchange costs will be borne by the Company.

                  References herein to "U.S. dollars" or "U.S. $" or "$" are to
the currency of the United States of America.

                  Section 3. Redemption. If so specified on the face hereof, the
Company may at its option redeem this Security in whole or from time to time in
part in increments of $1,000 (provided that any remaining principal amount of
this Security shall not be less than the Minimum Denomination specified on the
face hereof) on or after the date designated as the Initial Redemption Date on
the face hereof at 100% of the unpaid principal amount hereof or the portion
thereof redeemed (or, if this Security is a Discount Security, such lesser
amount as is provided for below) multiplied by the Initial Redemption Percentage
specified on the face hereof, together with accrued interest, if any, to the
Redemption Date. Such Initial Redemption Percentage shall decline at each
anniversary of the Initial Redemption Date by an amount equal to the Annual
Redemption Percentage Reduction, if any, specified on the face hereof until the
Redemption Price is 100% of the unpaid principal amount hereof. The Company may
exercise such option by causing the Trustee to mail a notice of such redemption
at least 30 but not more than 60 days prior to the Redemption Date. In the event
of redemption of this Security in part only, a new Security or Securities for
the unredeemed portion hereof shall be issued in the name of the Holder hereof
upon the cancellation hereof. If less than all of the Securities with like tenor
and terms to this Security are to be redeemed, the Securities to be redeemed
shall be selected by the Trustee by such method as the Trustee shall deem fair
and appropriate. However, if less than all the Securities of the series with
differing tenor and terms to this Security are to be redeemed, then the Company
in its sole discretion shall select the particular Securities to be redeemed and
shall notify the Trustee in writing thereof at least 45 days prior to the
relevant Redemption Date.

                  Section 4. Repayment. If so specified on the face hereof, this
Security shall be repayable prior to the Stated Maturity Date at the option of
the Holder on each applicable

<PAGE>   11

                                        3

Optional Repayment Date shown on the face hereof at a repayment price equal to
100% of the principal amount to be repaid, together with accrued interest, if
any, to the Repayment Date. In order for this Security to be repaid, the Trustee
must receive at least 30 but not more than 45 days prior to an Optional
Repayment Date, this Security with the form attached hereto entitled "Option to
Elect Repayment" duly completed. Any tender of this Security for repayment shall
be irrevocable. The repayment option may be exercised by the Holder of this
Security in whole or in part in increments of $1,000 (provided that any
remaining principal amount of this Security shall not be less than the Minimum
Denomination specified on the face hereof). Upon any partial repayment, this
Security shall be canceled and a new Security or Securities for the remaining
principal amount hereof shall be issued in the name of the Holder of this
Security.

                  Section 5. Discount Securities. If this Security (such a
Security being referred to as a "Discount Security") (a) has been issued at an
Issue Price lower, by more than a de minimis amount (as determined under United
States federal income tax rules applicable to original issue discount
instruments), than the stated redemption price at maturity (as defined below)
hereof and (b) would be considered an original issue discount security for
United States federal income tax purposes, then the amount payable on this
Security in the event of redemption by the Company, repayment at the option of
the Holder or acceleration of the maturity hereof, in lieu of the principal
amount due at the Stated Maturity Date hereof, shall be the Amortized Face
Amount (as defined below) of this Security as of the date of such redemption,
repayment or acceleration. The "Amortized Face Amount" of this Security shall be
the amount equal to the sum of (a) the Issue Price (as set forth on the face
hereof) plus (b) the aggregate of the portions of the original issue discount
(the excess of the amounts considered as part of the "stated redemption price at
maturity" of this Security within the meaning of Section 1273(a)(2) of the
Internal Revenue Code of 1986, as amended (the "Code"), whether denominated as
principal or interest, over the Issue Price of this Security) which shall
theretofore have accrued pursuant to Section 1272 of the Code (without regard to
Section 1272(a)(7) of the Code) from the date of issue of this Security to the
date of determination, minus (c) any amount considered as part of the "stated
redemption price at maturity" of this Security which has been paid on this
Security from the date of issue to the date of determination.

                  Section 6. Modification and Waivers; Obligation of the Company
Absolute. The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series. Such
amendment may be effected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in
principal

<PAGE>   12

                                        4

amount of Outstanding Securities of each series affected thereby. The Indenture
also contains provisions permitting the Holders of not less than a majority in
principal amount of the Outstanding Securities of any series, on behalf of the
Holders of all Outstanding Securities of such series, to waive compliance by the
Company with certain provisions of the Indenture. Provisions in the Indenture
also permit the Holders of not less than a majority in principal amount of all
Outstanding Securities of any series to waive on behalf of all of the Holders of
Securities of such series certain past defaults under the Indenture and their
consequences. Any such consent or waiver shall be conclusive and binding upon
the Holder of this Security and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

                  The Securities are unsecured and rank pari passu with all
other unsecured and unsubordinated indebtedness of the Company.

                  No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest, if any, on this Security at the times, place and
rate, and in the Specified Currency herein prescribed, except as set forth in
Section 2 on the reverse hereof.

                  Section 7. Defeasance and Covenant Defeasance. The Indenture
contains provisions for defeasance at any time of (a) the entire indebtedness of
the Company on this Security and (b) certain restrictive covenants and the
related defaults and Events of Default, upon compliance by the Company with
certain conditions set forth therein, which provisions apply to this Security,
unless otherwise specified on the face hereof.

                  Section 8. Minimum Denomination. Authorized Denominations.
Unless otherwise provided on the face hereof, this Security is issuable only in
registered form without coupons in denominations of $1,000 or any amount in
excess thereof which is an integral multiple of $1,000. If this Security is
denominated in a Specified Currency other than U.S. dollars or is a Discount
Security, this Security shall be issuable in the denominations set forth on the
face hereof.

                  Section 9. Registration of Transfer. As provided in the
Indenture and subject to certain limitations herein and therein set forth, the
transfer of this Security is registrable in the Security Register upon surrender
of this Security for registration of transfer at a Place of Payment for the
series of Securities of which this Security forms a part, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series, of like authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

                  If the registered owner of this Security is the Depository
(such a Security being referred to as a "Global Security"), and (i) the
Depository is at any time unwilling or unable to continue as depository and a
successor depository is not appointed by the Company within

<PAGE>   13

                                        5

90 days following notice to the Company, or (ii) an Event of Default occurs, the
Company will issue Securities in certificated form in exchange for this Global
Security. In addition, the Company may at any time, and in its sole discretion,
determine not to have Securities represented by a Global Security and, in such
event, will issue Securities in certificated form in exchange in whole for this
Global Security. In any exchange pursuant to this paragraph, the Company will
execute, and the Trustee, upon receipt of a Company Order for the authentication
and delivery of individual Securities of this series in exchange for this Global
Security, will authenticate and deliver individual Securities of this series in
certificated form in an aggregate principal amount equal to the principal amount
of this Global Security in exchange herefor. Securities issued in exchange for
this Global Security pursuant to this paragraph shall be registered in such
names and in such authorized denominations as the Depository, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. None of the Company, the Trustee, any Paying Agent or the
Security Registrar will have any responsibility or liability for any aspect of
the records relating to or payments made on account of beneficial ownership
interests in this Global Security or for maintaining, supervising or reviewing
any records relating to such beneficial ownership interests. For purposes of the
Indenture, this Global Security constitutes a Security issued in permanent
global form. Securities so issued in certificated form will be issued in
denominations of $1,000 (or such other denomination as shall be specified on the
face hereof) or any amount in excess thereof which is an integral multiple of
$1,000 and will be issued in registered form only, without coupons.

                  As provided in the Indenture and subject to certain
limitations therein and herein set forth, this Security is exchangeable for a
like aggregate principal amount of Securities of this series of different
authorized denominations but otherwise having the same terms and conditions, as
requested by the Holder hereof surrendering the same.

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

                  Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Holder as the owner hereof for all purposes, whether or not this
Security be overdue, and none of the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.

                  Section 10. Events of Default. If an Event of Default with
respect to the Securities of the series of which this Security forms a part
shall have occurred and be continuing, the principal of this Security may be
declared due and payable in the manner and with the effect provided in the
Indenture.

<PAGE>   14

                                        6

                  Section 11. Defined Terms. All terms used in this Security
which are defined in the Indenture and are not otherwise defined herein shall
have the meanings assigned to them in the Indenture.

                  Section 12. Governing Law. Unless otherwise specified on the
face hereof, this Security shall be governed by and construed in accordance with
the law of the State of New York.

<PAGE>   15

                            OPTION TO ELECT REPAYMENT

                  The undersigned hereby irrevocably requests and instructs the
Company to repay this Security (or the portion thereof specified below),
pursuant to its terms, on the "Optional Repayment Date" first occurring after
the date of receipt of the within Security as specified below (the "Repayment
Date"), at a Repayment Price equal to 100% of the principal amount thereof,
together with interest thereon accrued to the Repayment Date, to the undersigned
at:

____________________________________

____________________________________
 (Please Print or Type Name and Address of the Undersigned.)

                  For this Option to Elect Repayment to be effective, this
Security with the Option to Elect Repayment duly completed must be received at
least 30 but not more than 45 days prior to the Optional Repayment Date (or, if
such Repayment Date is not a Business Day, the next succeeding Business Day) by
the Company at its office or agency in The City of New York, which will be
located initially at the office of the Trustee at 450 West 33rd Street, New
York, New York 10001-2697.

                  If less than the entire principal amount of this Security is
to be repaid, specify the portion thereof (which shall be $1,000 or an integral
multiple thereof) which is to be repaid:
$___________.

                  If less than the entire principal amount of the within
Security is to be repaid, specify the denomination(s) of the Security(ies) to be
issued for the unpaid amount ($1,000 or any integral multiple of $1,000;
provided that any remaining principal amount of this Security shall not be less
than the Minimum Denomination): $____.

Dated:
        __________

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

<PAGE>   16

                                  _____________

                                  ABBREVIATIONS

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

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

                  UNIF GIFT MIN ACT - ............Custodian............
                                        (Cust.)              (Minor)

                                      Under Uniform Gifts to Minors Act
                                      .................................
                                                   (State)

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

                                  _____________

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

PLEASE INSERT SOCIAL SECURITY OR OTHER
    IDENTIFYING NUMBER OF ASSIGNEE

_______________________________________
|                                     |
|                                     |
______________________________________________________________________________
         Please print or type name and address, including zip code of assignee

______________________________________________________________________________
the within Security of EATON CORPORATION and all rights thereunder and does
hereby irrevocably constitute and appoint

                                                                        Attorney
________________________________________________________________________
to transfer the said Security on the books of the within-named Company,
with full power of substitution in the premises.

Dated
     ________________________________

SIGNATURE GUARANTEED:
                     _______________________________________

______________________

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

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