Document:

NOTE

THIS  SECURITY  IS A  GLOBAL  SECURITY  WITHIN  THE  MEANING  OF  THE  INDENTURE
HEREINAFTER  REFERRED  TO AND IS  REGISTERED  IN THE NAME OF A  DEPOSITARY  OR A
NOMINEE OF THE DEPOSITARY.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR THE INDIVIDUAL DEBT SECURITIES  REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY
NOT BE  TRANSFERRED  EXCEPT AS A WHOLE BY THE  DEPOSITARY  TO A  NOMINEE  OF THE
DEPOSITARY  OR BY A NOMINEE  OF THE  DEPOSITARY  TO THE  DEPOSITARY  OR  ANOTHER
NOMINEE  OF  THE  DEPOSITARY  OR BY THE  DEPOSITARY  OR ANY  SUCH  NOMINEE  TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

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

No. R-2                                                    CUSIP No. 224044 AY 3

Aggregate Principal Amount:                                $400,000,000

                            Cox Communications, Inc.

                              7 3/4% Notes due 2010

         Cox Communications,  Inc., a Delaware  corporation  (hereinafter called
the "Company," which term includes any successor corporation under the Indenture
referred to below), for value received, hereby promises to pay to Cede & Co., or
registered   assigns,   the  principal  sum  of  FOUR  HUNDRED  MILLION  DOLLARS
($400,000,000)  on November 1, 2010 (the  "Maturity  Date"),  unless  previously
redeemed,  and to pay interest  thereon  from  November 1, 2000 or from the must
recent  interest  payment date to which  interest has been paid or duly provided
for,  payable  semiannually  on May 1 and  November  1 in each  year  (each,  an
"Interest  Payment  Date"),  commencing  May 1, 2001,  at the rate of 7 3/4% per
annum,  until the principal  hereof is paid or duly made  available for payment.
Interest  shall be  computed  on the  basis of a 360-day  year of twelve  30-day
months.  The interest so payable and punctually paid or duly provided for on any
Interest Payment Date will, as provided in the Indenture,  be paid to the Person
in
                                       1
<PAGE>

whose name this Note (or one or more  predecessor  securities)  is registered at
the close of business on the regular record date for such interest,  which shall
be April 15 or October 15 (whether or not a Business  Day),  as the case may be,
immediately  preceding  such Interest  Payment Date.  Any such interest which is
payable,  but is not  punctually  paid or duly  provided  for,  on any  Interest
Payment Date shall forthwith cease to be payable to the registered Holder hereof
on the relevant  regular  record date by virtue of having been such Holder,  and
may be paid to the  Person in whose  name this Note (or one or more  predecessor
securities)  is  registered  at the close of  business on a  subsequent  special
record  date (which  shall be at least 10 days before the payment  date) for the
payment of such  defaulted  interest to be fixed by the Trustee,  notice whereof
shall be given to the  Holders  of Notes of this  series  not less  than 10 days
prior to such  special  record  date,  or may be paid at any  time in any  other
lawful manner not inconsistent with the requirements of any securities  exchange
on which the Notes may be listed,  and upon such  notice as may be  required  by
such  exchange,  all as more fully provided in such  Indenture.  If any Interest
Payment Date or the Maturity Date falls on a day that is not a Business Day, the
required  payment  shall be made on the next  Business Day as if it were made on
the date such  payment  was due and no  interest  shall  accrue on the amount so
payable for the period from and after such Interest Payment Date or the Maturity
Date, as the case may be, to such next  Business Day.  Payments of principal and
interest  hereunder  shall be made in such coin or currency of the United States
of America as at the time of payment  shall be legal  tender for the  payment of
public and private debts and shall be made  immediately  available to the Holder
(as defined below) hereof.

         This Note is one of the duly  authorized  series of Debt  Securities of
the Company,  designated as the Company's "7 3/4% Notes due 2010" (the "Notes"),
initially limited to an aggregate  principal amount of $800,000,000,  all issued
or to be issued under and pursuant to an  Indenture,  dated as of June 27, 1995,
as  amended  or  modified  from time to time (as so  amended  or  modified,  the
"Indenture"),  duly  executed  and  delivered  by the Company to The Bank of New
York, as trustee (hereinafter referred to as the "Trustee"),  to which Indenture
reference is hereby made for a description of the rights,  limitation of rights,
obligations,  duties and immunities  thereunder of the Trustee,  the Company and
the Holders (the words "Holders" or "Holder"  meaning the registered  holders or
registered holder of the Notes).

         This Note will be redeemable at the option of the Company,  in whole at
any  time or in part  from  time to time,  at a  redemption  price  equal to the
greater of (i) 100% of the principal amount of this Note to be redeemed and (ii)
the sum, as determined by the Quotation Agent (as defined below), of the present
values of the  principal  amount of this Note to be redeemed  and the  remaining
scheduled  payments  of  interest  on the  principal  amount  of this Note to be
redeemed  (exclusive  of interest  accrued to the date of  redemption)  from the
redemption  date to  November  1,  2010  (the  "Remaining  Life"),  in each case
discounted from their respective  scheduled payment dates to the redemption date
on a semiannual  basis  (assuming a 360-day year consisting of 30-day months) at
the Treasury Rate (as defined below) plus 25 basis points,  plus in either case,
accrued interest thereon to the date of redemption.

         "Comparable  Treasury Issue" means the United States Treasury  security
selected by the  Quotation  Agent as having an actual or  interpolated  maturity
comparable  to the  Remaining  Life  that  would  be  utilized,  at the  time of
selection and in accordance with customary  financial  practice,  in pricing new
issues of corporate  debt  securities of comparable  maturity with the Remaining
Life.

         "Comparable Treasury Price" means, with respect to any redemption date,
the average of five Reference  Treasury  Dealer  Quotations for such  redemption
date,  after excluding the highest and lowest of such Reference  Treasury Dealer
Quotations,  or if the Trustee  obtains fewer than four such Reference  Treasury
Dealer Quotations, the average of all such quotations.

                                       2
<PAGE>

         "Quotation Agent" means the Reference Treasury Dealer appointed by the
Company.

         "Reference Treasury Dealer" means each of: (i) Merrill Lynch Government
Securities,  Inc., Chase Securities Inc., their respective successors, and three
other primary  United States  Government  securities  dealers in The City of New
York (each,  a "Primary  Treasury  Dealer")  selected by the Company;  provided,
however,  that if either of Merrill Lynch Government  Securities,  Inc. or Chase
Securities Inc. shall cease to be a Primary Treasury  Dealer,  the Company shall
substitute therefor another Primary Treasury Dealer.

         "Reference  Treasury  Dealer  Quotations"  means,  with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the  Trustee,  of the bid and asked  prices for the  Comparable  Treasury  Issue
(expressed  in each case as a  percentage  of its  principal  amount)  quoted in
writing to the Trustee by such Reference  Treasury Dealer at 3:30 p.m., New York
City time, on the third Business Day preceding such redemption date.

         "Treasury  Rate" means,  with respect to any redemption  date, the rate
per  annum  equal  to  the  semiannual  or  equivalent   yield  to  maturity  or
interpolated (on a day-count basis) of the Comparable Treasury Issue, calculated
on the third Business Day preceding such  redemption  date using a price for the
Comparable  Treasury Issue  (expressed as a percentage of its principal  amount)
equal to the Comparable Treasury Price for such redemption date.

         Notice of any  redemption  will be mailed at least 30 days but not more
than 60 days before the  redemption  date to the Holder hereof at its registered
address.  Unless the Company defaults in payment of the redemption price, on and
after the redemption date interest will cease to accrue on the principal  amount
of this Note called for redemption.

         If money  sufficient  to pay the  redemption  price with respect to and
accrued  interest  on the  principal  amount of this Note to be  redeemed on the
redemption  date is deposited with the Trustee on or before the redemption  date
and certain other conditions are satisfied, then on or after such date, interest
will cease to accrue on the principal amount of this Note called for redemption.

         Except as provided  above,  this Note is not  redeemable by the Company
prior to maturity and is not subject to any sinking fund.

         In  case an  Event  of  Default  shall  occur  and be  continuing,  the
principal hereof may be declared,  and upon such declaration  shall become,  due
and  payable,  in the  manner,  with the  effect and  subject to the  conditions
provided in the Indenture.

         Subject  to  certain  exceptions  set forth in the  Indenture,  (i) the
Indenture  may be amended  with  respect  to the Notes  with the  consent of the
Holders of at least a majority in principal amount  outstanding of the Notes and
(ii) any default or  noncompliance  with any provisions  applicable to the Notes
may be waived with the consent of the Holders of a majority in principal  amount
outstanding  of the  Notes.  Subject  to  certain  exceptions  set  forth in the
Indenture,  without the  consent of any Holder,  the Company and the Trustee may
amend the  Indenture  or the Notes to cure any  ambiguity,  omission,  defect or
inconsistency,  or to provide for the  assumption by a successor  corporation of
the  obligations  of  the  Company  under  the  Indenture,  or  to  provide  for
uncertificated Notes in addition to or in place of certificated Notes, or to add
guarantees with
                                       3
<PAGE>

respect to the Notes or to secure the Notes,  or to add additional  covenants or
surrender  any right or power  conferred on the  Company,  or to comply with any
request of the SEC in connection  with  qualifying the Indenture under the Trust
Indenture Act of 1939, as amended, or to make any change that does not adversely
affect the rights of any Holder.

         Subject to certain  conditions,  the Company at any time may  terminate
some or all of its obligations  under the Notes and the Indenture if the Company
deposits with the Trustee money or U.S Government Obligations for the payment of
principal and interest on the Notes to the Maturity Date.

         If money for the payment of principal or interest remains unclaimed for
two years,  the Trustee or Paying  Agent shall pay the money back to the Company
at its request unless an abandoned property law designates another Person. After
any such  payment,  Holders  entitled to the money must look only to the Company
and not to the Trustee for payment.

         No reference  herein to the  Indenture and no provision of this Note or
of the Indenture  shall alter or impair the obligation of the Company,  which is
absolute and unconditional, to pay the principal of and interest on this Note at
the place,  at the  respective  times,  at the rate, and in the coin or currency
herein prescribed.

         No director,  officer, employee or stockholder, as such, of the Company
shall have any liability for any  obligations  of the Company under this Note or
the  Indenture  or for any claim  based on, in  respect  of or by reason of such
obligations or their creation.  Each Holder,  by accepting this Note, waives and
releases  all  such   liability.   The  waiver  and  release  are  part  of  the
consideration for the issue of this Note.

         This Note and the Indenture  shall be deemed to be New York  contracts,
and for all  purposes  shall be construed  in  accordance  with the laws of said
State (without reference to principles of conflicts of law).

         Ownership  of this Note shall be proved by the  register  for the Notes
kept by the Registrar. The Company, the Trustee and any agent of the Company may
treat the  person  in whose  name a Note is  registered  as the  absolute  owner
thereof for all purposes.

         Pursuant to a  recommendation  promulgated  by the Committee on Uniform
Note  Identification  Procedures,  the Company  has caused a CUSIP  number to be
printed on this Note and has  directed  the Trustee to use the CUSIP number as a
convenience to Holders.  No representation is made as to the correctness of such
numbers  and  reliance  may be place  only on the other  identification  numbers
printed on this Note.

         Terms used herein without  definition that are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

         Unless the  Certificate of  Authentication  hereon has been executed by
the Trustee  under the Indenture  referred to herein by the manual  signature of
one of its  authorized  officers,  or on behalf  of the  Trustee  by the  manual
signature of an authorized officer of the Trustee's  authenticating  agent, this
Note shall not be  entitled to any benefit  under the  Indenture  or be valid or
obligatory for any purpose.

                                       4

<PAGE>

         IN WITNESS  WHEREOF,  the Company has caused this instrument to be duly
executed, manually or by facsimile.

Date:  November 7, 2000

                                    COX COMMUNICATIONS, INC.

                                    By:
                                        ---------------------------------------
                                        Name:  Dallas S. Clement
                                        Title: Senior Vice President of Strategy
                                               & Development and Treasurer

                                    By:
                                        ---------------------------------------
                                         Name:  Jimmy W. Hayes
                                         Title: Executive Vice President,
                                                Finance and Administration and
                                                Chief Financial Officer

                          CERTIFICATE OF AUTHENTICATION

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

Date:  November 7, 2000

THE BANK OF NEW YORK,
      as Trustee

By:
   -------------------------
      Authorized Signatory
                                       6

<PAGE>

                                 ASSIGNMENT FORM

FOR    VALUE    RECEIVED,     the    undersigned     hereby    sell(s),

assign(s)    and    transfer(s)     unto

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Please insert social security number or other identifying number of assignee:

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

Please print or type name and address (including zip code) of assignee:

---------------------------
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the within Note and all rights thereunder,  hereby irrevocably  constituting and
appointing   _____________________   attorney  to  transfer  said  Note  of  Cox
Communications, Inc. on the books of Cox Communications, Inc, with full power of
substitution in the premises.

Dated:

NOTICE:  The  signature  to this  assignment  must  correspond  with the name as
written upon the face of this Note in every  particular  without  alteration  or
enlargement  or any change  whatsoever.  The Signature  must be guaranteed by an
"eligible  guarantor  institution"  meeting the  requirements  of the Registrar,
which requirements include memberships or participation in the Security Transfer
Agent Medallion Program ("STAMP") or such other "signature guarantee program" as
may be  determined  by the  Registrar  in addition to, or in  substitution  for,
STAMP, all in accordance with the Securities Exchange Act or 1934.

                                       7THIS  SECURITY  IS A  GLOBAL  SECURITY  WITHIN  THE  MEANING  OF  THE  INDENTURE
HEREINAFTER  REFERRED TO UNLESS THIS  CERTIFICATE  IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE  OF THE  DEPOSITORY  TRUST COMPANY (THE  "DEPOSITARY")  (55 WATER
STREET,  NEW YORK, NEW YORK) TO THE ISSUER HEREOF OR ITS AGENT FOR  REGISTRATION
OF TRANSFER,  EXCHANGE OR PAYMENT,  AND ANY CERTIFICATE  ISSUED IS REGISTERED IN
THE  NAME OF CEDE & CO.  OR  SUCH  OTHER  NAME  AS  REQUESTED  BY AN  AUTHORIZED
REPRESENTATIVE  OF THE  DEPOSITARY  AND ANY  PAYMENT IS MADE TO CEDE & CO.,  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  IT IS  EXCHANGED  IN  WHOLE  OR IN PART  FOR  SECURITIES  IN
CERTIFICATED FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE  DEPOSITARY OR BY A NOMINEE OF THE  DEPOSITARY TO
THE DEPOSITARY OR ANOTHER  NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH  NOMINEE  TO  A  SUCCESSOR  DEPOSITARY  OR  A  NOMINEE  OF  SUCH  SUCCESSOR
DEPOSITARY.

No. R-1                                                   REGISTERED PRINCIPAL
                                                          AMOUNT:  $ 200,000,000
CUSIP No.: 224044 AZ 0

<TABLE>
<S>                                          <C>                                     <C>

                            Cox Communications, Inc.
                        FLOATING RATE MOPPRSSM/CHEERSSM

ORIGINAL ISSUE DATE:                      INTEREST RATE                               STATED MATURITY DATE:
November 7, 2000                          TO INITIAL MANDATORY TENDER                 November 7, 2012, subject to
                                          DATE:  LIBOR plus 0.70%                     extension as provided herein.
INITIAL MANDATORY TENDER DATE:            INTEREST RATE
November 7, 2002                          OR RATES ON AND AFTER THE INITIAL
                                          MANDATORY    TENDER   DATE:    To   be
                                          determined as provided  herein and set
                                          forth in the  records of the  Trustee,
                                          and  such   rates  set  forth  in  the
                                          Trustee's  records shall  constitute a
                                          part of this Security.

<PAGE>

INITIAL PERIOD:  From, and including,     INTEREST PAYMENT DATE(S) FOR INITIAL        INTEREST RESET DATES FOR INITIAL
the Original Issue Date to, but           PERIOD:  February 7, May 7, August 7 and    PERIOD:  February 7, May 7,
excluding, the Initial Mandatory Tender   November 7 of each year, commencing         August 7 and November 7 of each
Date.                                     February 7, 2001.                           year, commencing November 7,
                                                                                      2000.

</TABLE>

         Cox Communications, Inc., a Delaware corporation (the "Company"), which
term includes any successor  under the  Indenture  hereinafter  referred to, for
value  received,  hereby  promises  to pay  to  Cede &  Co.,  a  nominee  of The
Depository  Trust Company  ("DTC"),  or its  registered  assigns,  the principal
amount of TWO HUNDRED  MILLION  DOLLARS  ($200,000,000),  on the Stated Maturity
Date specified above (or any earlier  redemption date or repurchase  date) (each
such Stated Maturity Date,  redemption date or repurchase date being hereinafter
referred to as the "Maturity  Date" with respect to the  principal  repayable on
such date) and to pay interest thereon, at the interest rate per annum specified
above to, but excluding, November 7, 2002 (the "Initial Mandatory Tender Date"),
and  thereafter,  subject to the terms and conditions  set forth herein,  at the
interest rate or interest rates determined in accordance with the procedures set
forth  below,  until the  principal  hereof is paid or duly made  available  for
payment.  The Company will pay interest in arrears on each Interest Payment Date
(as  defined  below),  commencing  with the  first  Interest  Payment  Date next
succeeding the Original Issue Date specified above.

         The Company is obligated to make payment of principal, premium, if any,
and interest in respect of this Security in United States dollars.

         Reference is hereby made to the further provisions of this Security set
forth following the Trustee's Certificate of Authentication (the "Certificate of
Authentication") set forth below.

         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.

                                       2

<PAGE>

         IN WITNESS WHEREOF,  Cox Communications,  Inc. has caused this Security
to be duly executed manually or by facsimile.

Date:  November 7, 2000

                                        Cox Communications, Inc.
(SEAL)

                                        By:
                                           ----------------------------------
                                        Name: Dallas S. Clement
                                        Title: Senior Vice President
                                               of Strategy & Development and
                                               Treasurer

By:
   ------------------------------------
Name:    Jimmy W. Hayes
Title:   Executive Vice President,
         Finance and Administration and
         Chief Financial Officer

                          CERTIFICATE OF AUTHENTICATION

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

Dated: November 7, 2000

THE BANK OF NEW YORK,
As Trustee

By: __________________________________
      Authorized Signatory

                                       3
<PAGE>

                            Cox Communications, Inc.
                         FLOATING RATE MOPPRSSM/CHEERSSM

1. Definitions. The following terms, as used herein, have the following meanings
unless the  context or use clearly  indicates  another or  different  meaning or
intent.  Capitalized  terms used and not otherwise defined herein shall have the
meanings assigned to them in the Indenture.

         "Additional  Mandatory  Tender Date" shall have the meaning assigned to
it in Section 6 hereof.

         "Adjusted  Dollar  Price" shall mean,  with  respect to the  Additional
Mandatory Tender Date, the Dollar Price as of the Initial  Mandatory Tender Date
(determined  by the  Remarketing  Dealer  or,  if  applicable,  the  Remarketing
Dealers,  for the Initial  Mandatory  Tender  Date as if the  Initial  Mandatory
Tender Date were the only  Mandatory  Tender  Date) plus the product of (i) such
Dollar Price as of the Initial  Mandatory  Tender Date, (ii) a rate equal to the
greater  of (a) the  weighted  average  per annum of the Short Term Rate for the
Short Term Spread Period or (b) the weighted  average per annum of LIBOR with an
Index Maturity equal to the applicable  Interest Reset Period for the Short Term
Spread Period and reset on the  designated  Interest Reset Dates for such period
and (iii) the number of days in the Short Term Spread Period divided by 360.

         "Base Rate" shall mean 5.742% per annum.

         "Beneficial  Owners" shall mean,  for  Securities  in book-entry  form,
persons  who acquire an interest in the  Securities  which is  reflected  on the
records of DTC through its participants.

         "Business  Day" shall mean any day other than a Saturday or Sunday or a
day on which banking institutions or trust companies in The City of New York are
authorized or required by law,  regulation  or executive  order to close and, in
case LIBOR is the  applicable  Floating Rate Basis,  any such day that is also a
London Business Day.

         "Calculation   Agent"  shall  mean  the  calculation  agent  or  agents
appointed by the Company from time to time to perform the duties of  calculation
agent in accordance  with the terms of the  Securities  and, as the case may be,
the Remarketing Agreements or the Remarketing Reset Agreement.

         "Calculation Date" shall have the meaning assigned to it in Section 15
hereof.

         "Chase"  shall mean Chase  Securities  Inc.  and its  successors  and
permitted  assigns  under the Chase Remarketing Agreement.

         "Chase  Remarketing  Agreement"  shall mean the remarketing  agreement,
dated as of November 7, 2000,  between the Company and Chase,  as such agreement
may be amended or supplemented, which sets forth, among other things, the rights
and obligations of Chase as a Remarketing Dealer and Calculation Agent.

                                       4
<PAGE>

         "Comparable  Treasury  Issue"  shall mean with  respect to any optional
redemption  of Securities  after the  remarketing  thereof in the  MOPPRS/CHEERS
Mode,  the  United  States  Treasury  security  or  securities  selected  by the
Remarketing  Dealer or  Dealers  or, as the case may be, the  Remarketing  Reset
Agent as having an actual or interpolated  maturity  comparable to the remaining
term of the Securities subject to redemption that would be utilized, at the time
of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term
of the Securities.

         "Comparable  Treasury  Issues" shall mean,  with respect to the Initial
Mandatory Tender Date, the United States Treasury benchmark  on-the-run security
or securities  selected by the Remarketing Dealer or Dealers as having an actual
maturity  comparable  to the remaining  term to the Stated  Maturity Date of the
Securities being purchased.

         "Comparable  Treasury Price" shall mean (1) with respect to the Initial
Mandatory  Tender Date, (a) the offer prices for the Comparable  Treasury Issues
(expressed  in  each  case  as a  percentage  of its  principal  amount)  on the
MOPPRS/CHEERS  Spread  Determination Date preceding the Initial Mandatory Tender
Date,  as set forth on  "Telerate  Page 500" (or such other page as may  replace
Telerate Page 500) or (b) if such page (or any successor  page) is not displayed
or does not  contain  such  offer  prices on such date,  (i) the  average of the
Reference  Treasury  Dealer  Quotations for the Initial  Mandatory  Tender Date,
after  excluding  the  highest  and  lowest of such  Reference  Treasury  Dealer
Quotations,  or (ii) if the  Remarketing  Dealer obtains or, if applicable,  the
Remarketing  Dealers  obtain,  fewer than four such  Reference  Treasury  Dealer
Quotations,  the average of all such Reference Treasury Dealer  Quotations,  and
(2) with  respect to any optional  redemption  date  applicable  to any optional
redemption of the Securities after the remarketing  thereof in the MOPPRS/CHEERS
Mode, (a) the average of the applicable Reference Treasury Dealer Quotations for
such redemption  date, after excluding the highest and lowest of such applicable
Reference Treasury Dealer  Quotations,  or (b) if the Trustee obtains fewer than
four  such  Reference  Treasury  Dealer  Quotations,  the  average  of all  such
Reference Treasury Dealer Quotations.

         "Defaulted Interest" shall have the meaning assigned to it in Section 3
hereof.

         "DTC" shall mean The Depository Trust Company or its nominees or
successors.

         "DTC  Participant"  shall mean any person that has an account  with DTC
through which Beneficial Owners acquire,  directly or indirectly, an interest in
the Securities.

         "Dollar  Price"  shall  mean,   with  respect  to  the  Securities  (or
applicable  portion  thereof),  the present value  determined by the Remarketing
Dealer or, if  applicable,  the  Remarketing  Dealers on the third  Business Day
preceding  the Initial  Mandatory  Tender Date  (whether or not such date is the
only Mandatory  Tender Date),  as of the Initial  Mandatory  Tender Date, of the
Remaining Scheduled Payments discounted to the Initial Mandatory Tender Date, on
a semiannual basis (assuming a 360-day year consisting of twelve 30-day months),
at the Treasury  Rate;  provided  that in the case of the  Additional  Mandatory
Tender Date, the Dollar Price shall be the Adjusted Dollar Price.

                                       5
<PAGE>

         "Fixed Interest  Determination Date" shall have the meaning assigned to
it in Section 13 hereof.

         "Fixed Rate" shall mean any interest  rate  determined  by reference to
the Base Rate or a Fixed Rate Basis.

         "Fixed Rate Basis" shall be the semiannual equivalent yield to maturity
or  interpolated  yield to maturity  (on a day count basis)  determined  by 1:00
p.m., New York City time, on the MOPPRS/CHEERS Spread Determination Date for the
MOPPRS/CHEERS  Mode or, as the case may be, on the Fixed Interest  Determination
Date for any Subsequent  Spread Period  (expressed as a bond equivalent,  on the
basis of a year of 365 or 366 days, as applicable, and applied on a daily basis)
of the applicable  United States Treasury security (or securities in the case of
interpolation),  selected  by the  Calculation  Agent,  as having a maturity  or
interpolated  maturity  comparable  to the duration  selected for the  following
Spread  Period,  which  would be used in  accordance  with  customary  financial
practice  in pricing  new issues of  corporate  debt  securities  of  comparable
maturity to the duration selected for the following Spread Period.

         "Floating Rate" shall mean any interest rate determined by reference to
a Floating Rate Basis.

         "Floating Rate Basis" shall have the meaning  assigned to it in Section
15 hereof.

         "H.15  (519)"  means  the  weekly  statistical  release  designated  as
H.15(519), 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.

         "Indenture" shall have the meaning assigned to in Section 2 hereof.

         "Index Maturity" shall have the meaning assigned to it in Section 15
hereof.

         "Initial Mandatory Tender Date" shall mean November 7, 2002.

         "Initial  Mode  Election  Date"  shall  mean the  fourth  Business  Day
immediately preceding the Initial Mandatory Tender Date.

         "Initial  Period" shall have the meaning assigned to it in Section 4 of
this Security.

         "Interest  Determination Date" shall have the meaning assigned to it in
Section 15 hereof.

         "Interest   Payment  Dates"  shall  mean  each  Interest  Payment  Date
specified for the applicable Spread Period, each Tender Date and Maturity Date.

         "Interest Reset Dates" shall have the meaning assigned to it in Section
4 hereof.

                                       6
<PAGE>

         "London  Business Day" shall mean any day on which dealings in deposits
in U.S.  dollars are transacted in the London interbank market.

         "Make-Whole Amount" shall mean, with respect to any optional redemption
of Securities after the remarketing thereof in the MOPPRS/CHEERS Mode, an amount
equal to the greater of (i) 100% of its principal amount and (ii) the sum of the
present  values of the  remaining  scheduled  payments of principal and interest
thereon (exclusive of interest accrued to the date of redemption)  discounted to
the date of such  redemption  on a  semiannual  basis  (assuming a 360-day  year
consisting of twelve 30-day  months) at the  applicable  Treasury Yield plus the
Reinvestment Spread, plus accrued interest to the date of redemption.

         "Mandatory Tender Date" shall mean the Initial Mandatory Tender Date or
the Additional Mandatory Tender Date, as the context requires.

         "Maturity  Date" shall mean the Stated  Maturity Date or any date prior
to the Stated Maturity Date on which the principal  amount of Securities (or any
portion  thereof)  becomes due and payable by the Company,  whether by reason of
redemption, repurchase or otherwise.

         "Merrill  Lynch"  shall  mean  Merrill  Lynch,  Pierce,  Fenner & Smith
Incorporated  and its successors  and permitted  assigns under the Merrill Lynch
Remarketing Agreement, or as the case may be, the Remarketing Reset Agreement.

         "Merrill  Lynch  Remarketing  Agreement"  shall  mean  the  remarketing
agreement,  dated as of November 7, 2000, between the Company and Merrill Lynch,
as such agreement may be amended or supplemented,  which sets forth, among other
things,  the rights and obligations of Merrill Lynch as a Remarketing Dealer and
a Calculation Agent.

         "Mode Terms  Designation Date" shall mean, (a) in the case of the Short
Term Mode, if  applicable,  the fourth  Business Day  immediately  preceding the
Initial  Mandatory Tender Date, (b) in the case of the  MOPPRS/CHEERS  Mode, the
fourth  Business  Day  immediately  preceding  the  Mandatory  Tender  Date  for
remarketing  in the  MOPPRS/CHEERS  Mode and (c) in the case of the  Remarketing
Reset Mode, the eighth  Business Day  immediately  preceding the Optional Tender
Date commencing a Subsequent Spread Period.

         "Money  Market Yield" means a yield  calculated in accordance  with the
following formula and expressed as a percentage:

         [Money Market Yield equals D times 360 divided by 360 minus
         (D times M), all multiplied by 100.]

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.

         "MOPPRS/CHEERS  Mode" shall mean the mode in which this Security  bears
interest during the MOPPRS/CHEERS Spread Period at the MOPPRS/CHEERS Rate.

                                       7
<PAGE>

         "MOPPRS/CHEERS  Rate" shall be equal to the sum of the Fixed Rate Basis
(provided that, if no Optional Tender Date is designated, the Base Rate shall be
used in place of the Fixed Rate Basis) plus the MOPPRS/CHEERS  Spread or, as the
case may be, the Floating Rate Basis plus or minus the MOPPRS/CHEERS Spread.

         "MOPPRS/CHEERS   Spread"  shall  be  the  lowest  bid   indication  (if
positive),  or highest bid indication  (if negative),  expressed as a spread (in
the form of a percentage  or in basis  points)  above (if positive) or below (if
negative) either (i) the Fixed Rate Basis (or, if applicable, the Base Rate), if
the Company has selected a Fixed Rate, or (ii) the Floating Rate Basis  selected
by the  Company,  if the Company has selected a Floating  Rate,  in either case,
obtained by the Remarketing Dealer or, if applicable,  the Remarketing  Dealers,
by 3:30 p.m., New York City time, on the MOPPRS/CHEERS Spread Determination Date
from the bids quoted by five Reference  Corporate Dealers for the full aggregate
principal  amount of the Securities to be remarketed by the  Remarketing  Dealer
or, if applicable, the Remarketing Dealers, at the Dollar Price, or, as the case
may be, the Adjusted  Dollar Price,  but assuming (i) an issue date equal to the
Mandatory Tender Date for remarketing in the MOPPRS/CHEERS Mode, with settlement
on such date without accrued interest, (ii) a maturity date equal to the initial
Optional  Tender Date (or, if no such date is  designated,  the Stated  Maturity
Date, as such date may be extended) of the Securities,  (iii) if applicable, the
Securities are subject to redemption  upon the terms specified on the Mode Terms
Designation  Date for the  MOPPRS/CHEERS  Mode and (iv) a stated annual interest
rate, reset, if applicable,  on the designated Interest Reset Dates, if any, and
payable on the designated  Interest Payment Dates, equal to the Fixed Rate Basis
(or,  if  applicable,  the  Base  Rate),  in the  case of a Fixed  Rate,  or the
applicable  Floating  Rate Basis,  in the case of a Floating  Rate, in each case
plus or minus the spread bid by the applicable  Reference  Corporate Dealers. If
fewer than five Reference  Corporate  Dealers bid as described  above,  then the
MOPPRS/CHEERS  Spread shall be the lowest (if positive) or highest (if negative)
of such bid indications  obtained as described above, subject to the Remarketing
Dealer or Dealers receiving at least two bids.

         "MOPPRS/CHEERS Spread Determination Date" shall mean the third Business
Day immediately  preceding (i) the Initial Mandatory Tender Date or, (ii) if the
Securities  initially  are  remarketed  in the Short Term Mode,  the  Additional
Mandatory  Tender Date, in the event that the  Securities  are remarketed in the
MOPPRS/CHEERS Mode.

         "MOPPRS/CHEERS  Spread Period" shall have the meaning assigned to it in
Section 10 hereof.

         "Notice Date" shall have the meaning assigned to it in Section 13
hereof.

         "Notification Date" shall have the meaning assigned to it in Section 5
hereof.

         "Optional  Redemption  Price"  shall be the  greater of (i) 100% of the
principal amount of the Securities (or applicable  portion thereof) and (ii) the
Dollar Price, in the case of the Initial  Mandatory Tender Date, or the Adjusted
Dollar  Price,  in the case of the  Additional  Mandatory  Tender Date,  plus in
either case accrued and unpaid  interest from the  Mandatory  Tender Date on the
principal amount being redeemed to the date of redemption.

                                       8
<PAGE>

         "Optional Tender Date" shall have the meaning assigned to it in Section
10 hereof.

         "Record Date" shall have the meaning assigned to itin Section 3 hereof.

         "Reference  Corporate  Dealers" shall mean leading  dealers of publicly
traded debt  securities  of the Company in The City of New York  (which,  unless
otherwise specified by the Remarketing Dealer or Dealers,  shall include Merrill
Lynch or one of its affiliates and Chase or one of its  affiliates)  selected by
the  Company  after  consultation  with the  Remarketing  Dealer or Dealers  and
notified to the Remarketing Dealer or Dealers not later than 4:00 p.m., New York
City  time,  on the Mode  Terms  Designation  Date for the  MOPPRS/CHEERS  Mode;
provided,  that if the  Company  does not so notify  the  Remarketing  Dealer or
Dealers by such time, then such Reference Corporate Dealers shall be selected by
the Remarketing Dealer or Dealers.

         "Reference Money Market Dealers" shall mean leading dealers of publicly
traded  debt  securities  of the  Company  in The  City of New York who are also
leading dealers in money market instruments  (which,  unless otherwise specified
by the Remarketing Dealer or Dealers,  shall include Merrill Lynch or one of its
affiliates  and Chase or one of its  affiliates)  selected by the Company  after
consultation  with  the  Remarketing  Dealer  or  Dealers  and  notified  to the
Remarketing  Dealer or Dealers not later than 4:00 p.m.,  New York City time, on
the Mode Terms Designation Date for the Short Term Mode;  provided,  that if the
Company does not so notify the Remarketing  Dealer or Dealers by such time, then
such Reference Money Market Dealers shall be selected by the Remarketing  Dealer
or Dealers.

         "Reference Treasury Dealer" shall mean (1) with respect to any optional
redemption  of Securities  after the  remarketing  thereof in the  MOPPRS/CHEERS
Mode, at least four primary U.S.  Government  securities  dealers in The City of
New York as the  Company or the  Trustee  shall  select,  which may  include the
Remarketing  Dealer or Dealers,  the  Remarketing  Reset  Agent or an  affiliate
thereof,  and (2) with respect to the Initial  Mandatory Tender Date, up to five
primary  U.S.  Government  securities  dealers  in The City of New York  (which,
unless otherwise  specified by the Remarketing Dealer or Dealers,  shall include
Merrill Lynch or one of its  affiliates and Chase or one of its  affiliates,  in
each case, that is a primary U.S. Government  securities dealer) selected by the
Company after  consultation with the Remarketing  Dealer or Dealers and notified
to the  Remarketing  Dealer or Dealers  not later than 4:00 p.m.,  New York City
time, on the Initial Mode Election Date; provided,  that if the Company does not
so notify the  Remarketing  Dealer or Dealers by such time,  then such Reference
Treasury  Dealers  shall be  selected  by the  Remarketing  Dealer  or  Dealers;
provided,  however, that if any of the foregoing or their affiliates shall cease
to be a primary  U.S.  Government  securities  dealer in The City of New York (a
"Primary  Treasury  Dealer"),  the Company,  or if applicable,  the  Remarketing
Dealer or Dealers shall substitute therefor another Primary Treasury Dealer.

         "Reference  Treasury Dealer  Quotations" shall mean (a) with respect to
each Reference  Treasury Dealer and the Initial Mandatory Tender Date, the offer
prices  for  the  Comparable  Treasury  Issues  (expressed  in  each  case  as a
percentage of its principal amount) quoted to the Remarketing  Dealer or Dealers
by such Reference Treasury Dealer by 3:30 p.m., New York City time, on the third
Business Day preceding the Initial  Mandatory  Tender Date, and (b) with respect
to each Reference Treasury Dealer and any optional redemption date applicable to
the Securities  after the  remarketing  thereof in the  MOPPRS/CHEERS  Mode, the
average,  as

                                       9
<PAGE>

determined  by the  Trustee,  of the bid and asked  prices for the Comparable
Treasury  Issue  for the  Securities  (expressed  in each  case as a percentage
of its  principal  amount)  quoted in writing to the Trustee by such Reference
Treasury  Dealer  at 3:30  p.m.,  New York  City  time,  on the third
Business Day preceding such redemption date.

         "Reinvestment  Spread"  shall  mean,  with  respect  to the  Securities
subject to redemption,  a number,  expressed as a number of basis points or as a
percentage, selected on the applicable Mode Terms Designation Date.

         "Remaining  Scheduled  Payments"  shall  mean,  with  respect  to  this
Security (or the applicable portion hereof), the remaining scheduled payments of
the principal thereof and interest thereon (assuming  interest is payable on May
7 and  November  7 of each  year,  commencing  May 7,  2003,  and  assuming  the
Securities  were not remarketed in the Short Term Mode),  calculated at the Base
Rate only,  that would be due after the  Initial  Mandatory  Tender  Date to and
including the Stated Maturity Date, as determined by the  Remarketing  Dealer or
Dealers.

         "Remarketing Agreements" shall mean the Chase Remarketing Agreement and
the Merrill Lynch Remarketing Agreement,  and "Remarketing Agreement" shall mean
either of them.

         "Remarketing Dealer" and "Remarketing Dealers" shall mean each of Chase
and Merrill Lynch acting separately or, as applicable,  jointly, pursuant to the
Chase  Remarketing  Agreement  and  the  Merrill  Lynch  Remarketing  Agreement,
respectively.

         "Remarketing  Reset  Agent"  shall  mean  Merrill  Lynch or such  other
broker-dealer selected by the Company to act as remarketing reset agent pursuant
to the Remarketing Reset Agreement.

         "Remarketing   Reset  Agreement"  shall  mean  the  remarketing   reset
agreement  dated as of November 7, 2000,  between the Company and Merrill Lynch,
as such agreement may be amended or supplemented,  which sets forth, among other
things,  the rights and obligations of Merrill Lynch as Remarketing  Reset Agent
and a Calculation Agent.

         "Remarketing  Reset  Mode"  shall mean the mode in which this  Security
bears interest during one or more Subsequent Spread Periods at a Fixed Rate or a
Floating Rate.

         "Security" or "Securities" shall have the meaning assigned to it in
Section 2 hereof.

         "Short  Term Mode"  shall mean the mode in which  this  Security  bears
interest during the Short Term Period at the Short Term Rate.

         "Short Term Rate" shall be equal to the sum of the Floating  Rate Basis
for the Short Term Mode plus or minus the Short Term Spread.

         "Short Term Spread" shall be the lowest bid indication (if positive) or
highest bid indication  (if  negative),  expressed as a spread (in the form of a
percentage or number of basis points) above (if positive) or below (if negative)
the  applicable  Floating  Rate  Basis,  obtained by

                                       10
<PAGE>

the  Remarketing  Dealer or Dealers on the Short Term  Spread  Determination
Date from the bids quoted from five  Reference  Money  Market  Dealers  on such
date  for the  full  aggregate principal  amount of the Securities to be
remarketed by the  Remarketing  Dealer or, if applicable, the Remarketing
Dealers at a price equal to par, but assuming (i) an issue date of the Initial
Mandatory Tender Date, with settlement on such date without  accrued  interest,
(ii) a maturity  date equal to the  Additional Mandatory  Tender Date
designated  on the Mode Terms  Designation  Date for the Short Term Mode, (iii)
that the Securities are subject to purchase as a whole by the Remarketing Dealer
or Dealers or the Company at a price equal to 100% of the principal  amount
thereof on a weekly or monthly  basis,  as the case may be (as designated by the
Company on the Mode Terms Designation Date), after the Initial Mandatory  Tender
Date;  and (iv) a stated annual  interest  rate,  reset on the designated
Interest Reset Dates and payable on the designated  Interest Payment Date or
Dates,  equal to the Floating Rate Basis plus or minus the spread bid by the
applicable Reference Money Market Dealer. If fewer than five Reference Money
Market Dealers bid as described  above,  then the Short Term Spread shall be the
lowest of such bid indications  (if positive),  or highest (if negative) of such
bid indications,  obtained as described above, subject to the Remarketing Dealer
or Dealers receiving at least two bids.

         "Short Term Spread  Determination  Date" shall mean the third  Business
Day immediately  preceding the Initial  Mandatory Tender Date, in the event that
this Security is remarketed in the Short Term Mode.

         "Short Term  Spread  Period"  shall have the meaning  assigned to it in
Section 8 hereof.

         "Spread Period" shall mean the Initial Period, the MOPPRS/CHEER  Spread
Period, the Short Term Spread Period or a Subsequent Spread Period.

         "Stated  Maturity  Date"  shall  mean  November  7,  2012,  subject  to
extension as provided in Section 6 hereof.

         "Subsequent Spread  Determination  Date" shall mean the fourth Business
Day  immediately  preceding  an  Optional  Tender Date for a  Subsequent  Spread
Period.

         "Subsequent  Spread  Period"  shall have the meaning  assigned to it in
Section 13 hereof.

         "Telerate Page 500" shall mean the display designated as "Telerate Page
500" on Bridge  Telerate,  Inc. (or such other page as may replace Telerate Page
500 on such service) or such other service displaying the offer prices specified
above in the  definition  of  Comparable  Treasury  Price as may replace  Bridge
Telerate, Inc.

         "Tender Date" shall mean a Mandatory Tender Date or an Optional Tender
Date

         "Treasury  Rate" shall  mean,  with  respect to the  Initial  Mandatory
Tender  Date,  the rate per annum equal to the  semiannual  equivalent  yield to
maturity of the Comparable Treasury Issues,  assuming a price for the Comparable
Treasury Issues  (expressed as a percentage of its principal  amount),  equal to
the Comparable  Treasury Price for the Initial Mandatory Tender Date;  provided,
however,  that if, in the  judgment of the  Remarketing  Dealer or  Dealers,  if
applicable,  no  Comparable  Treasury  Issues  are  outstanding  at the  time of
determination, the "Treasury Rate" will be the rate per annum equal to the yield
for United States Treasury

                                       11
<PAGE>

securities at "constant  maturity" having a maturity comparable to the remaining
term to the Stated  Maturity Date of the Securities being purchased  obtained by
the Remarketing  Dealer or Dealers,  if applicable, from a recognized
information service or other source in accordance with market practice.

         "Treasury Yield" shall mean, with respect to any optional redemption of
Securities after  remarketing  thereof in the  MOPPRS/CHEERS  Mode, the rate per
annum equal to the semiannual equivalent yield to maturity or interpolated (on a
day count  basis) of the  Comparable  Treasury  Issue,  assuming a price for the
Comparable  Treasury Issue (expressed as a percentage of its principal  amount),
with respect to any optional  redemption of Securities,  equal to the applicable
Comparable   Treasury  Price,  with  respect  to  any  optional   redemption  of
Securities, for such redemption date.

         "Trustee" shall have the meaning assigned to it in Section 2 hereof.

         2. Indenture.  (a) This Security is one of a duly authorized  series of
Debt Securities of the Company, designated as the "Floating Rate MOPPRS/CHEERS,"
and  referred  to herein as the  "Securities,"  issued or to be issued  under an
Indenture,  dated as of June 27, 1995 (as amended or modified from time to time,
the "Indenture"),  between the Company and The Bank of New York, as Trustee (the
"Trustee,"  which term includes any successor  trustee under the Indenture),  to
which  Indenture  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 authenticated and delivered. The Securities are initially limited
to $200,000,000  aggregate  principal amount.  All terms used but not defined in
this Security  shall have the meanings  assigned to such terms in the Indenture.
Except where the context otherwise requires,  all references in this Security to
"this  Security,"  "herein"  or  "hereof"  or similar  terms  shall  include the
Indenture and any applicable portion of this Security.

                  (b) This Security is issuable only in registered  form without
         coupons in minimum  denominations of U.S. $1,000 and integral multiples
         thereof.

(c) This Security will not be subject to any sinking fund.

         3.  General  Payment  and  Calculation  Provisions.  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. The interest so payable,  and punctually paid
or duly  provided  for, on any Interest  Payment  Date will,  subject to certain
exceptions  described  herein, be paid to the person in whose name this Security
(or one or more  predecessor  Securities) is registered at the close of business
on the  fifteenth  calendar  day  (whether  or not a Business  Day)  immediately
preceding  such  Interest  Payment Date (the "Record  Date").  Any such interest
which is  payable,  but is not  punctually  paid or duly  provided  for,  on any
Interest  Payment  Date shall  forthwith  cease to be payable to the  registered
Holder hereof on the relevant  regular record date by virtue of having been such
Holder,  and may 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
subsequent  special

                                       12
<PAGE>

record  date  (which  shall be at least 10 days  before the payment  date) for
the  payment of such  defaulted  interest  to be fixed by the Trustee,  notice
whereof  shall be given to the Holders of  Securities  of this series not less
than 10 days prior to such special  record date,  or may be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which the  Securities  may be listed,  and upon such notice as may
be required by such  exchange,  all as more fully provided in such Indenture.
Payments of principal and interest  hereunder  shall be made in such coin or
currency of the United States of America as at the time of payment shall
be legal  tender for the payment of public and  private  debts and shall be made
immediately  available to the Holder (as defined below) hereof.  Notwithstanding
anything to the contrary, if this Security is a global Security (as evidenced by
the legend first set forth above and provided in the Indenture),  and is held in
book-entry form through the facilities of DTC, payments on this Security will be
made to DTC or its nominee in accordance  with the  arrangements  then in effect
between the Trustee and DTC.

         During any period in which this Security (or any portion  hereof) bears
interest at a "Floating  Rate",  if any  Interest  Payment  Date (other than the
Stated  Maturity Date) would otherwise be a day that is not a Business Day, such
date will be postponed to the next succeeding day that is a Business Day, except
that,  for any  Interest  Payment  Date that does not fall on a Tender Date or a
Maturity Date, if LIBOR is the applicable  Floating Rate Basis and such Business
Day is in the  next  succeeding  calendar  month,  such  date  shall be the next
preceding Business Day.

         During any period in which this Security (or any portion  hereof) bears
interest at a "Fixed Rate", if any Interest Payment Date (other than an Interest
Payment Date  falling on a Tender  Date) would  otherwise be a day that is not a
Business Day, the related  payment of principal,  premium,  if any, and interest
will be made on the next succeeding  Business Day as if it were made on the date
such payment was due, and no interest  will accrue on the amounts so payable for
the period from and after such date to the next succeeding Business Day.

         If the Stated  Maturity Date for this Security (or any portion  hereof)
falls on a day that is not a Business  Day,  the related  payment of  principal,
premium,  if any, and interest will be made on the next succeeding  Business Day
as if it were made on the date such  payment  was due,  and no  interest  on the
amounts  so  payable  for the  period  from  and  after  such  date to the  next
succeeding Business Day.

         If a Tender Date would  otherwise be a day that is not a Business  Day,
any payment or  remarketing  scheduled to occur on such day will be postponed to
the next  succeeding day that is a Business Day, and interest will accrue on the
amount of principal or premium, if any, payable to such Business Day.

         All percentages resulting from any calculation of any interest rate for
this  Security (or any portion  hereof) will be rounded,  if  necessary,  to the
nearest one hundred  thousandth of a percentage  point, with five one millionths
of a percentage  point rounded  upward and all dollar amounts will be rounded to
the nearest cent, with one-half cent being rounded upward.

         In the event that no applicable  United States Treasury  securities are
outstanding as of any date for purposes of  determining a rate, the  Remarketing
Dealer,  the  Remarketing  Reset Agent,

                                       13
<PAGE>

or, as the case may be, the Calculation Agent,  will  determine  an  equivalent
rate in good  faith  on a  commercially reasonable  basis using a  formulation
by reference to market  practice at such date and a security that is, in the
judgment of applicable Remarketing Dealer or Dealers,  the Remarketing  Reset
Agent,  or, as the case may be, the Calculation Agent,  and, in each case, after
consultation  with the Company,  a comparable benchmark security  at such  date.
The  Company  shall  cause the terms of the Securities,  subject to the terms of
the  Indenture  as modified  hereby,  to be amended as necessary to facilitate
the foregoing.

4. Interest to Initial  Mandatory  Tender Date. This Security will bear interest
at the annual  interest rate of LIBOR  determined in accordance  with Section 15
below,  with an Index Maturity of three months,  plus a Spread equal to 70 basis
points,  reset  quarterly  on February 7, May 7, August 7 and November 7 of each
year,  commencing November 7, 2000 (each, an "Interest Reset Date" in respect of
the Initial  Period),  from,  and  including,  the  Original  Issue Date to, but
excluding, the Initial Mandatory Tender Date (the "Initial Period").  During the
Initial Period, interest on the Securities will be payable on February 7, May 7,
August 7 and November 7 of each year (each such date, an "Interest Payment Date"
in respect of the Initial Period),  commencing February 7, 2001. For the Initial
Period,  interest  will be  computed  on the basis of the actual  number of days
elapsed over a 360-day year.

5. Mandatory  Tender on the Initial  Mandatory  Tender Date, and, if applicable,
the Additional  Mandatory Tender Date. (a) Mandatory  Tender.  This Security (or
the applicable portion hereof) shall be automatically  tendered for purchase, or
deemed tendered by the Beneficial  Owners hereof,  on each Mandatory Tender Date
relating hereto in accordance with the terms hereof.

         (b) Purchase by Remarketing Dealer. The Company has appointed Chase and
Merrill Lynch as Remarketing Dealers for the Securities on the Initial Mandatory
Tender Date and the  Additional  Mandatory  Tender Date, if any, under the Chase
Remarketing Agreement and the Merrill Lynch Remarketing Agreement, respectively,
each with respect to $100,000,000 aggregate principal amount of the Securities.

         On a  Business  Day (the  "Notification  Date")  not  later  than  five
Business  Days prior to the Initial  Mandatory  Tender  Date,  each  Remarketing
Dealer  will  notify  the  Company  and the  Trustee  as to whether it elects to
purchase its portion of the Securities on the Initial Mandatory Tender Date. If,
and only if, a  Remarketing  Dealer so  elects,  the  applicable  portion of the
Securities  shall be subject to mandatory  tender to the Remarketing  Dealer for
remarketing  on the  Initial  Mandatory  Tender  Date and, in the event that the
Company  elects to have the  Securities  remarketed in the Short Term Mode,  the
Additional  Mandatory  Tender  Date,  subject  to the  conditions  set  forth or
otherwise referred to herein.

         The Remarketing Dealers have agreed in the Remarketing Agreements that,
if both Remarketing  Dealers are remarketing the Securities on the same date and
upon identical  terms,  they will coordinate their efforts in order to establish
the same interest rate for the full aggregate principal amount of the Securities
in connection with such remarketing. In addition, if only one Remarketing Dealer
elects to remarket the Securities  (and/or the other Remarketing  Dealer resigns
as Remarketing  Dealer prior to the  remarketing),  the Company may request such
remaining  Remarketing Dealer to remarket the full aggregate principal amount of
the Securities.

                                       14
<PAGE>

         The Remarketing  Dealers shall incur no liability under the Remarketing
Agreements  to any  Beneficial  Owners or  Holders  of the  Securities  in their
individual  capacity or as Remarketing  Dealers for any action or failure to act
in connection with remarketing or otherwise.

6. Initial Mode Election;  Extension of Stated  Maturity  Date.  Provided that a
Remarketing  Dealer gives notice of its intention to purchase the  Securities in
accordance  with Section 5 hereof,  then not later than 4:00 p.m., New York City
time, on the Initial Mode Election Date, the Company,  after  consultation  with
such Remarketing  Dealer,  may elect, by notifying the Remarketing  Dealer,  the
Trustee and DTC by telephone, confirmed in writing, that it elects to either (i)
redeem such Remarketing  Dealer's portion of the Securities in whole, but not in
part, on the Initial Mandatory Tender Date, (ii) have the applicable  Securities
remarketed  initially  in the Short Term Mode on the  Initial  Mandatory  Tender
Date, in which case the Securities shall also be subject to mandatory tender for
remarketing in the MOPPRS/CHEERS  Mode on the Additional  Mandatory Tender Date,
or  (iii)  have  the   applicable   Securities   remarketed   initially  in  the
MOPPRS/CHEERS Mode, in which case the Initial Mandatory Tender Date shall be the
only Mandatory Tender Date. The Company will be eligible to elect the Short Term
Mode and make such  notification  if at such time its senior  unsecured  debt is
rated at least "Baa3" by Moody's Investors Service,  Inc. and "BBB-" by Standard
& Poor's Ratings Services (or the equivalent thereof by each such rating agency)
at the time of such notification or if the applicable  Remarketing Dealer waives
this  requirement in its sole  discretion.  If the Company does not provide such
notification,  the Initial  Mandatory  Tender  Date shall be the only  Mandatory
Tender  Date and the Stated  Maturity  Date shall be  November  7, 2012.  If the
Company elects the Short Term Mode and provides  notification  thereof, then (i)
the  "Additional  Mandatory  Tender  Date"  shall be the earlier of (A) the date
established  on the Mode Terms  Designation  Date for the Short Term Mode as the
Additional  Mandatory  Tender Date, which shall be a date not more than one year
following  the Initial  Mandatory  Tender Date (or if such day is not a Business
Day, the next succeeding  Business Day), or (B) one of the one-week or one-month
anniversary  dates following the Initial  Mandatory  Tender Date (or if any such
day is not a Business Day, the next  succeeding  Business Day) designated by the
Company by notification to the applicable  Remarketing  Dealer,  the Trustee and
DTC (and the Company,  in such notice,  shall instruct the Trustee and/or DTC to
notify the Beneficial  Owners of the Securities of such date) not later than the
fifth  Business Day prior to such one-week or one-month  anniversary  date,  and
(ii) the Stated  Maturity Date of the  Securities  shall be the date that is the
ten-year  anniversary of the Additional  Mandatory Tender Date (whether or not a
Business Day).

7.  Designation  of Terms for the Short Term Mode. If the Company elects to have
the  Securities  remarketed in the Short Term Mode,  then by not later than 4:00
p.m., New York City time, on the Mode Terms  Designation Date for the Short Term
Mode,  the  Company,   after   consultation  with  the  Remarketing  Dealer  (or
Remarketing Dealers, if they are acting jointly),  will establish the Additional
Mandatory  Tender Date for remarketing of the Securities (or applicable  portion
thereof) in the MOPPRS/CHEERS Mode, which shall be a date not more than one year
following  the Initial  Mandatory  Tender Date (or if such day is not a Business
Day,  the next  succeeding  Business  Day),  designate  whether such date may be
advanced on a weekly or monthly  basis,  and designate the  applicable  Floating
Rate Basis,  Interest  Payment  Date(s),  Interest  Reset  Date(s) and any other
applicable  floating rate terms for remarketing of the Securities (or applicable
portion thereof) in the Short Term Mode.

                                       15
<PAGE>

8.  Determination  of the Short  Term Rate.  If the  Securities  (or  applicable
portion  thereof) are to be  remarketed  in the Short Term Mode,  the Short Term
Spread  applicable  thereto will be  determined  by the  applicable  Remarketing
Dealer by 3:30 p.m., New York City time, on the Short Term Spread  Determination
Date, to the nearest one-hundred  thousandth (0.00001) of one percent per annum,
by  soliciting  bids from  five  Reference  Money  Market  Dealers  for the full
aggregate  principal  amount  of  such  Remarketing   Dealer's  portion  of  the
Securities at a price equal to par. If both Remarketing  Dealers are remarketing
in the Short Term Mode on the same date and upon identical terms, then they will
determine the Short Term Spread jointly for the full aggregate  principal amount
of the Securities.  From, and including,  the Initial  Mandatory Tender Date, if
the Securities (or applicable  portion thereof) are remarketed in the Short Term
Mode, to, but excluding,  the Additional  Mandatory Tender Date (the "Short Term
Spread  Period"),  the  Securities (or  applicable  portion  thereof) shall bear
interest at the Short Term Rate.

         Notwithstanding  any  provision  herein  to  the  contrary,  if,  after
determining  the Short Term  Spread as  provided  in the  immediately  preceding
paragraph,  a  Remarketing  Dealer  is  entitled  to  terminate  the  applicable
Remarketing  Agreement,  then in lieu of terminating such Remarketing Agreement,
the  Remarketing  Dealer,  in its sole  discretion at any time between the Short
Term  Spread  Determination  Date and 3:30  p.m.,  New York  City  time,  on the
Business Day immediately  preceding the Initial Mandatory Tender Date, may elect
to purchase the applicable  Securities for remarketing and determine a new Short
Term  Spread  in  the  manner  provided  above,  except  that  for  purposes  of
determining the new Short Term Spread pursuant to this paragraph, the Short Term
Spread Determination Date referred to therein shall be the date of such election
and redetermination. The Remarketing Dealer will notify the Company, the Trustee
and DTC by telephone, confirmed in writing (which may include facsimile or other
electronic transmission),  by 4:00 p.m., New York City time, on the date of such
election,  of the  new  Short  Term  Spread  applicable  to the  Securities  (or
applicable  portion  thereof).  Thereupon,  such new  Short  Term  Spread  shall
supersede and replace any applicable Short Term Spread previously  determined by
the  Remarketing  Dealer  and,  absent  manifest  error,  shall be  binding  and
conclusive  upon  the  Beneficial  Owners  and  Holders  of the  Securities  (or
applicable portion thereof), the Company and the Trustee on or after the Initial
Mandatory  Tender Date;  provided,  however,  that the  Remarketing  Dealer,  by
redetermining the Short Term Spread,  shall not thereby be deemed to have waived
any  right if  otherwise  may have to  determine  a new  Short  Term  Spread  or
terminate the applicable Remarketing Agreement.

         The  Floating  Rate Basis for a Short Term Rate will be  determined  as
described  in  Section  15  hereof.  Each  determination  will  be  made  by the
Calculation Agent as of the applicable Interest Determination Date.

         The  Short  Term  Spread  announced  by  the  Remarketing   Dealer  (or
Remarketing  Dealers,  if they are acting  jointly) and the resulting Short Term
Rate, absent manifest error, shall be binding and conclusive upon the Beneficial
Owners and Holders of the Securities, the Company and the Trustee.

         Interest  will be payable on the  designated  date or dates  (each,  an
"Interest Payment Date" in respect of the Short Term Spread Period) and reset on
the designated  Interest Reset Dates, and computed on the basis of the day-count
convention  provided in Section  15(a) below for the  applicable  Floating  Rate
Basis.

                                       16
<PAGE>

9.  Designation of Terms for the  MOPPRS/CHEERS  Mode. If the Securities (or the
applicable  portion  thereof) are to be  remarketed in the  MOPPRS/CHEERS  Mode,
then,  by not later  than  12:00  p.m.,  New York City  time,  on the Mode Terms
Designation Date for the  MOPPRS/CHEERS  Mode, the Company,  after  consultation
with  the  Remarketing  Dealer  (or  Remarketing  Dealers,  if they  are  acting
jointly),  will establish the first Optional Tender Date, if any,  designate the
MOPPRS/CHEERS Rate as a Fixed Rate or Floating Rate (and in the latter case, the
applicable Floating Rate Basis,  Interest Reset Date(s) and any other applicable
floating rate terms),  specify the Interest Payment Dates for the  MOPPRS/CHEERS
Spread Period, and establish the terms, if any, for redemption of the Securities
(or the applicable portion thereof) for the MOPPRS/CHEERS Spread Period.

10.  Determination of the  MOPPRS/CHEERS  Rate. If the Securities (or applicable
portion  thereof)  are  to  be  remarketed  in  the   MOPPRS/CHEERS   Mode,  the
MOPPRS/CHEERS  Spread  applicable  thereto will be determined by the  applicable
Remarketing Dealer by 3:30 p.m., New York City time, on the MOPPRS/CHEERS Spread
Determination  Date,  to the nearest  one  hundred-thousandth  (0.00001)  of one
percent per annum, by soliciting bids from five Reference  Corporate Dealers for
the full aggregate principal amount of such Remarketing  Dealer's portion of the
Securities  at the  Dollar  Price or, as the case may be,  the  Adjusted  Dollar
Price. If both Remarketing  Dealers are remarketing in the MOPPRS/CHEERS Mode on
the  same  date  and  upon  identical  terms,   then  they  will  determine  the
MOPPRS/CHEERS  Spread  jointly for the full  aggregate  principal  amount of the
Securities.  From,  and  including,  the  applicable  Mandatory  Tender Date for
remarketing  of  the  Securities   (or  applicable   portion   thereof)  in  the
MOPPRS/CHEERS  Mode to,  but  excluding,  the  initial  "Optional  Tender  Date"
designated by the Company or, if no such date is designated, the Stated Maturity
Date (the "MOPPRS/CHEERS Spread Period"),  the Securities (or applicable portion
thereof) shall bear interest at the MOPPRS/CHEERS Rate.

         Notwithstanding  any  provision  herein  to  the  contrary,  if,  after
determining the MOPPRS/CHEERS  Spread as provided above, a Remarketing Dealer is
entitled to terminate  the  applicable  Remarketing  Agreement,  then in lieu of
terminating  such Remarketing  Agreement,  the Remarketing  Dealer,  in its sole
discretion at any time between the MOPPRS/CHEERS  Spread  Determination Date and
3:30 p.m.,  New York City time,  on the Business Day  immediately  preceding the
Initial  Mandatory Tender Date or, as the case may be, the Additional  Mandatory
Tender Date, may elect to purchase the applicable Securities for remarketing and
determine a new MOPPRS/CHEERS  Spread in the manner provided above,  except that
for  purposes  of  determining  the new  MOPPRS/CHEERS  Spread  pursuant to this
paragraph, the MOPPRS/CHEERS Spread Determination Date referred to therein shall
be the date of such election and  redetermination.  The Remarketing  Dealer will
notify the  Company,  the Trustee  and DTC by  telephone,  confirmed  in writing
(which may include  facsimile or other electronic  transmission),  by 4:00 p.m.,
New York  City  time,  on the date of such  election,  of the new  MOPPRS/CHEERS
Spread applicable to the Securities (or applicable portion thereof).  Thereupon,
such new  MOPPRS/CHEERS  Spread  shall  supersede  and  replace  any  applicable
MOPPRS/CHEERS Spread previously determined by the Remarketing Dealer and, absent
manifest error,  shall be binding and conclusive upon the Beneficial  Owners and
Holders of the Securities (or applicable  portion thereof),  the Company and the
Trustee on or after the  Initial  Mandatory  Tender Date or, as the case may be,
the Additional  Mandatory Tender Date; provided,  however,  that the Remarketing
Dealer, by redetermining the MOPPRS/CHEERS

                                       17
<PAGE>

Spread,  shall not thereby be deemed to have waived any right it otherwise may
have to determine a new  MOPPRS/CHEERS Spread or terminate the applicable
Remarketing Agreement.

         The Fixed Rate Basis,  if any, or Floating  Rate Basis,  if any,  for a
MOPPRS/CHEERS  Rate will be  determined  as described in Section 15 hereof.  The
determination will be made by the Calculation Agent on the MOPPRS/CHEERS  Spread
Determinate Date, in the case of a Fixed Rate, and as of the applicable Interest
Determination Date, in the case of a Floating Rate.

         The  MOPPRS/CHEERS  Spread  announced  by the  Remarketing  Dealer  (or
Remarketing Dealers, if they are acting jointly) and the resulting MOPPRS/CHEERS
Rate, absent manifest error, shall be binding and conclusive upon the Beneficial
Owners and Holders of the Securities, the Company and the Trustee.

         Interest  will be  payable  semiannually  on the  designated  dates and
computed on the basis of a 360-day year of twelve 30-day months,  in the case of
a Fixed Rate, and on the designated  dates (each, an "Interest  Payment Date" in
respect  of the  MOPPRS/CHEERS  Spread  Period),  and  reset  on the  designated
Interest  Reset  Dates and  computed  on the basis of the  day-count  convention
described  below  for the  applicable  Floating  Rate  Basis,  in the  case of a
Floating Rate.

11. Notification of Results and Settlement for Short Term Mode and MOPPRS/CHEERS
Mode.  Subject to the applicable  Remarketing  Dealer's election to remarket the
Securities  and  the  other  conditions  set  forth  in  this  Security  and the
applicable  Remarketing  Agreement,  and subject further to Section 14(a) below,
(i) the Remarketing Dealer (or Remarketing  Dealers, if they are acting jointly)
will notify the Company, the Trustee and DTC by telephone,  confirmed in writing
(which may include  facsimile or other electronic  transmission),  by 4:00 p.m.,
New York  City  time,  on the  MOPPRS/CHEERS  Spread  Determination  Date of the
MOPPRS/CHEERS  Spread,  and (ii) if the  Securities  are remarketed in the Short
Term Mode, the Remarketing  Dealer (or Remarketing  Dealers,  if they are acting
jointly) will notify the Company, the Trustee and DTC by telephone, confirmed in
writing,   by  4:00  p.m.,  New  York  City  time,  on  the  Short  Term  Spread
Determination Date of the Short Term Spread.

         All of the Securities shall be  automatically  delivered to the account
of the Trustee, by book-entry through DTC, pending payment of the purchase price
therefor, on each Mandatory Tender Date.

         In the event that the Securities are remarketed as provided herein, the
Remarketing  Dealer will make, or cause the Trustee to make,  payment to the DTC
Participant  of  each  tendering  Beneficial  Owner  of  Securities  subject  to
remarketing,  by  book-entry  through  DTC  by  the  close  of  business  on the
applicable Mandatory Tender Date against delivery through DTC of such Beneficial
Owner's  tendered  Securities,  of 100% of the principal  amount of the tendered
Securities that have been purchased for  remarketing by the Remarketing  Dealer.
If a Remarketing  Dealer does not purchase all of its portion of the  Securities
on a Mandatory Tender Date, unless the other  Remarketing  Dealer agrees to, and
does, remarket all of the Securities,  it shall be the obligation of the Company
to make or cause to be made such payment for the  Securities.  The Company shall
make, or cause the Trustee to make,  payment of interest to each

                                       18
<PAGE>

person entitled thereto due on the  Securities on the applicable  Mandatory
Tender Date by book entry through DTC by the close of business on such date.

         The  transactions  described  above will be executed on the  applicable
Mandatory  Tender Date through DTC in accordance with the procedures of DTC, and
the accounts of the respective DTC participants will be debited and credited and
the Securities  delivered by book-entry as necessary to effect the purchases and
sales of the Securities.

         The  tender  and  settlement  procedures  described  above,   including
provisions  for payment by purchasers of  Securities in the  remarketing  or for
payment to selling Beneficial Owners of tendered Securities,  may be modified to
the extent  required by DTC or to the extent  required to facilitate  the tender
and remarketing of Securities in certificated  form, if the book-entry system is
no  longer  available  for the  Securities  at the time of the  remarketing.  In
addition,  the  Remarketing  Dealers  may, in  accordance  with the terms of the
Indenture,  as modified hereby,  modify the tender and settlement procedures set
forth above in order to facilitate the tender and settlement process.

         As long as  DTC's  nominee  holds  the  certificates  representing  any
Securities in the book-entry  system of DTC, no certificates for such Securities
will be  delivered  by any selling  Beneficial  Owner to reflect any transfer of
such Securities effected in the remarketing.

12.  Repurchase.  In the event  that (i) the  Remarketing  Dealer for any reason
(other than  redemption by the Company of the  Securities  from the  Remarketing
Dealer in accordance  with Section 14 hereof) does not notify the Company of (A)
in the event of the MOPPRS/CHEERS  Mode, the MOPPRS/CHEERS  Spread by 4:00 p.m.,
New York City time, on the MOPPRS/CHEERS Spread Determination Date or (B) in the
event of the Short Term Mode,  the Short Term Spread by 4:00 p.m., New York City
time,  on the Short Term Spread  Determination  Date (subject to in each case to
redetermination,  if applicable,  in accordance  with Section 8, or, as the case
may be, Section 10 above),  or (ii) prior to either  Mandatory  Tender Date, the
Remarketing Dealer has resigned and no successor has been appointed on or before
the Short Term Spread  Determination  Date or, as applicable,  the MOPPRS/CHEERS
Spread  Determination  Date or (iii) the  Remarketing  Dealer has terminated the
Remarketing  Agreement  pursuant  to Section 8 or Section 11 thereof at any time
after the  Remarketing  Dealer elects on the  Notification  Date to remarket the
Securities,  or (iv) the  Remarketing  Dealer for any reason does not elect,  by
notice to the Company,  and the Trustee not later than the Notification Date, to
purchase the Securities for remarketing on the Initial Mandatory Tender Date, or
(v) the  Remarketing  Dealer for any reason does not purchase all of its portion
of tendered  Securities on a Mandatory Tender Date, the Company shall repurchase
such  Securities as a whole on the applicable  Mandatory  Tender Date at a price
equal to 100% of the  principal  amount of the  Securities  plus all accrued and
unpaid interest, if any, on the Securities to such Mandatory Tender Date. In any
such case,  payment shall be made by the Company  through the Trustee to the DTC
Participant of each  tendering  Beneficial  Owner of  Securities,  by book-entry
through  DTC by the close of  business on such  Mandatory  Tender  Date  against
delivery through DTC of such Beneficial Owner's tendered Securities.

         Notwithstanding  the foregoing,  if one Remarketing Dealer resigns,  or
otherwise  does  not  elect  to  remarket  the  Securities,  and  the  remaining
Remarketing  Dealer agrees to, and does,

                                       19
<PAGE>

remarket the full aggregate  principal amount of the Securities on the
applicable  Mandatory  Tender Date,  pursuant to the request of the Company,
then the Company will not be obligated to repurchase the Securities on such
Mandatory Tender Date.

13.      Remarketing  Reset Mode.  The following  provisions  shall apply in the
event that the  Securities  are in
the Remarketing Reset Mode:

         (a) Determination of Spread, Subsequent Spread Periods and Other Terms.
The "Spread" will be determined  in the manner  described  below for each period
from  and  including  each  Optional  Tender  Date to but  excluding  each  next
succeeding  Optional Tender Date (a "Subsequent  Spread Period"),  which will be
one or more  periods  of at  least  six  months  and not more  than  the  period
remaining  to the  Stated  Maturity  Date of the  Securities  (or  any  integral
multiple of six months  therein),  designated by the Company,  commencing on the
date (each such date, an "Optional  Tender  Date")  specified by the Company and
the  Remarketing  Reset Agent on the applicable Mode Terms  Designation  Date in
connection  with the  establishment  of each Subsequent  Spread Period,  if any,
through and including  the next  succeeding  Optional  Tender Date or the Stated
Maturity Date, as the case may be (no Subsequent Spread Period may end after the
Stated Maturity Date).

         The  Spread  that  will be  applicable  to this  Security  during  each
Subsequent  Spread  Period  will  be  the  percentage  (i)  recommended  by  the
Remarketing  Reset  Agent so as to result in a rate that,  in the opinion of the
Remarketing  Reset Agent,  will enable  tendered  Securities  (or any applicable
portion thereof) to be remarketed by the Remarketing  Reset Agent at 100% of the
principal amount thereof,  as described in subsection (c) below, and (ii) agreed
to by the Company.  During each  Subsequent  Spread Period,  this Security shall
bear interest at a Floating Rate or a Fixed Rate,  determined in accordance with
Section 15 hereof.  The Spread announced by the Remarketing  Reset Agent and the
resulting Fixed Rate or Floating Rate,  absent manifest error,  shall be binding
and conclusive  upon the  Beneficial  Owner and Holders of the  Securities,  the
Company and the Trustee.

         Unless notice of redemption of all of the  outstanding  Securities  has
been given, the term,  redemption dates,  redemption type (i.e., par, premium or
make-whole),  redemption prices (if applicable),  Optional Tender Date, Interest
Payment Dates,  interest rate type (i.e., Fixed Rate or Floating Rate), Floating
Rate Basis (if  applicable)  and any other  relevant  terms for each  Subsequent
Spread Period for  Securities  will be  established  by 3:00 p.m., New York City
time, on the Mode Terms  Designation  Date for such  Subsequent  Spread  Period;
provided,  that the Mode  Terms  Designation  Date for  establishing  the  first
Optional  Tender Date, if any, will be the Mode Terms  Designation  Date for the
MOPPRS/CHEERS Mode.

         The Spread for each  Subsequent  Spread Period will be  established  by
3:00 p.m.,  New York City time,  on the  Subsequent  Spread  Determination  Date
immediately  preceding such Subsequent Spread Period. The Company shall request,
not  less  than  ten nor  more  than  20 days  prior  to any  Subsequent  Spread
Determination  Date,  that DTC notify its DTC  Participants  of such  Subsequent
Spread  Determination  Date and of the  procedures  that must be followed if any
Beneficial  Owner of Securities  wishes to tender such Securities as provided in
subsection  (c)  below.  In the event  that DTC or its  nominee is no longer the
holder of record of the Securities, the Company shall notify the Holders of such
information  within such period of time.  This will

                                       20
<PAGE>

be the only notice  given by the  Company or the  Remarketing  Reset  Agent with
respect to such  Subsequent Spread Determination Date and procedures for
tendering Securities.

         If the Securities are to bear interest at a Floating Rate, as agreed to
by the Company and the Remarketing Reset Agent on a Mode Terms Designation Date,
then the applicable Floating Rate for the corresponding Subsequent Spread Period
will be determined in accordance  with Section 15(a) hereof,  and shall be equal
to (i) the  applicable  Floating Rate Basis,  plus or minus (ii) the  applicable
Spread (as  agreed to by the  Company  and the  Remarketing  Reset  Agent on the
Subsequent Spread Determination Date for such Subsequent Spread Period).

         If the Securities are to bear interest at a Fixed Rate, as agreed to by
the Company and the Remarketing  Reset Agent on a Mode Terms  Designation  Date,
then the applicable Fixed Rate for the  corresponding  Subsequent  Spread Period
shall be determined by 1:00 p.m.,  New York City time, on the third Business Day
prior to the Optional Tender Date commencing such Subsequent  Spread Period (the
"Fixed Interest  Determination  Date"), and shall be equal to (i) the Fixed Rate
Basis,  determined  in  accordance  with  Section  15(b)  hereof,  plus (ii) the
applicable  Spread (as agreed to by the Company and the Remarketing  Reset Agent
on the preceding Subsequent Spread Determination Date for such Subsequent Spread
Period).

(b)           Mandatory  Repurchase  Upon Failure to Set a Spread.  In the event
              that the Company and the  Remarketing  Reset Agent do not agree on
              the Spread for any  Subsequent  Spread Period for the  Securities,
              then the Company is required  unconditionally  to  repurchase  and
              retire all of the Securities on the related  Optional  Tender Date
              at a price equal to 100% of the aggregate  principal amount of the
              Securities,  together with accrued and unpaid interest  thereon to
              the Optional Tender Date.

(c)            Tender  at  Option  of  Beneficial  Owners;  Remarketing.  On the
               Optional Tender Date  commencing  each Subsequent  Spread Period,
               each  Security  shall  be  automatically   tendered,   or  deemed
               tendered,  to the Remarketing  Reset Agent for remarketing by the
               Remarketing  Reset Agent on the related  Optional  Tender Date at
               100% of the  principal  amount  thereof (the  "Purchase  Price"),
               unless the Beneficial Owner thereof, at such owner's option, upon
               giving notice as provided below (the "Hold  Notice"),  elects not
               to tender  such  Securities.  Subject  to the  second  succeeding
               paragraph,  the  Purchase  Price will be paid by the  Remarketing
               Reset Agent in  accordance  with the standard  procedures of DTC.
               Interest accrued on such Securities with respect to the preceding
               interest period will be paid in the manner  described in Sections
               3 and 15 hereof.

         The Hold Notice must be received by the Remarketing Reset Agent through
DTC during the period  commencing at 3:00 p.m.,  New York City time, on the Mode
Terms  Designation  Date and ending at 12:00  noon,  New York City time,  on the
third Business Day prior to the Optional Tender Date for such Subsequent  Spread
Period (the "Notice Date" in respect of the Subsequent Spread Period); provided,
however, that if the Remarketing Reset Agent and the Company are unable to agree
on the Spread for the Subsequent Spread Period,  any Hold Notices received shall
be null and void.  Except as otherwise  provided in subsection (b) above, a Hold
Notice shall be  irrevocable.  If a Hold Notice is not received  through DTC for
any reason by the  Remarketing  Reset Agent with  respect to any  Securities  by
12:00 noon, New York City time, on the Notice Date, the Beneficial Owner of such

                                       21
<PAGE>

Securities  shall be  deemed  to have  elected  to tender  such  Securities  for
purchase by the Remarketing  Reset Agent. All of the Securities,  whether or not
tendered, shall bear interest upon the same terms.

         The  Remarketing  Reset Agent will  attempt,  on a  reasonable  efforts
basis,  to  remarket  the  tendered  Securities  at a price equal to 100% of the
aggregate  principal  amount  so  tendered.  There  is  no  assurance  that  the
Remarketing  Reset Agent will be able to remarket the entire principal amount of
Securities  tendered in a remarketing.  The obligation of the Remarketing  Reset
Agent  to  perform  its  duties  will  be  subject  to  certain  conditions  and
termination  events set forth in the Remarketing  Agency Agreement,  including a
condition  that no material  adverse  change in the condition of the Company and
its  subsidiaries,  taken as a whole,  shall have occurred  since the Subsequent
Spread  Determination  Date for the  Securities.  In addition,  the  Remarketing
Agency  Agreement will provide for the  termination  thereof by the  Remarketing
Reset Agent upon the occurrence of certain events as set forth therein.

         No Beneficial  Owner or Holder of any Securities  shall have any rights
or claims  against the  Remarketing  Reset Agent as a result of the  Remarketing
Reset Agent not purchasing such Securities.

         Notwithstanding   anything  to  the  contrary   contained  herein,  the
Remarketing  Reset  Agent  shall have the  option,  but not the  obligation,  to
purchase any Securities tendered to it that it is not able to remarket.

         All of the  Securities  (unless  subject  to a Hold  Notice)  shall  be
automatically  delivered  by  book-entry  through  DTC,  pending  payment of the
purchase price therefor, on each Optional Tender Date.

         In the event that the  Securities  are  remarketed  as provided in this
Section 13(c),  the  Remarketing  Reset Agent will make, or cause the Trustee to
make,  payment to the DTC  Participant  of each  tendering  Beneficial  Owner of
Securities  subject to  remarketing,  by book-entry  through DTC by the close of
business on the applicable  Optional Tender Date against delivery through DTC of
such Beneficial Owner's tendered Securities,  of 100% of the principal amount of
the  tendered  Securities  that  have  been  purchased  for  remarketing  by the
Remarketing  Reset Agent.  If a Remarketing  Dealer does not purchase all of the
tendered  Securities on an Optional  Tender Date, it shall be the  obligation of
the  Company to make or cause to be made such  payment for the  Securities.  The
Company  shall make,  or cause the Trustee to make,  payment of interest to each
person entitled thereto due on the Securities on the applicable  Optional Tender
Date by book entry through DTC by the close of business on such date.

         The  transactions  described  above will be executed on the  applicable
Optional  Tender Date through DTC in accordance  with the procedures of DTC, and
the accounts of the respective DTC participants will be debited and credited and
the Securities  delivered by book-entry as necessary to effect the purchases and
sales of the Securities.

         The  tender  and  settlement  procedures  described  above,   including
provisions  for payment by purchasers of  Securities in the  remarketing  or for
payment to selling Beneficial Owners of tendered Securities,  may be modified to
the extent  required by DTC or to the extent  required to facilitate  the tender
and remarketing of Securities in certificated  form, if the book-entry system is

22
<PAGE>

no  longer  available  for the  Securities  at the time of the  remarketing.  In
addition,  the Company may, in accordance  with the terms of the  Indenture,  as
modified hereby,  modify the tender and settlement procedures set forth above in
order to facilitate the tender and settlement process.

         As long as  DTC's  nominee  holds  the  certificates  representing  any
Securities in the book-entry  system of DTC, no certificates for such Securities
will be  delivered  by any selling  Beneficial  Owner to reflect any transfer of
such Securities effected in the remarketing.

(d)           Mandatory  Repurchase Upon Failed  Remarketing.  In the event that
              the  Remarketing  Reset Agent is unable to remarket some or all of
              the tendered  Securities and, in its sole discretion,  chooses not
              to purchase  such  tendered  Securities,  the Company is obligated
              unconditionally to purchase and retire on the Optional Tender Date
              the remaining unsold tendered  Securities at a price equal to 100%
              of the aggregate principal amount thereof, plus accrued and unpaid
              interest, if any, to the applicable Optional Tender Date.

14. Redemption. (a) Redemption From the Remarketing Dealers at the Option of the
Company.  If a Remarketing  Dealer elects to remarket the  Securities,  then not
later than 4:00 p.m.,  New York City time, on the fourth  Business Day preceding
either the Initial  Mandatory  Tender Date or the  Additional  Mandatory  Tender
Date,  the Company  shall notify the  Remarketing  Dealer and the Trustee if the
Company  irrevocably  elects to exercise its right to redeem the Securities,  in
whole  but not in  part,  from the  Remarketing  Dealer  on the next  succeeding
Mandatory Tender Date at the Optional Redemption Price. If the Company elects to
redeem the  Securities,  it shall pay the redemption  price therefor in same-day
funds by wire transfer to an account designated by the Remarketing Dealer on the
applicable Mandatory Tender Date.

         (b)   Redemption  at  the  Option  of  the  Company   During  or  After
MOPPRS/CHEERS  Spread Period.  During or after the MOPPRS/CHEERS  Spread Period,
the MOPPRS/CHEERS are subject to redemption in the following circumstances:

         On each  Optional  Tender  Date and on  those  Interest  Payment  Dates
specified  as  redemption  dates  for  the  Securities  by  the  Company  on the
applicable Mode Terms  Designation Date for the  MOPPRS/CHEERS  Spread Period or
any Subsequent Spread Period,  the Securities may be redeemed,  at the option of
the Company, in whole in part, upon notice thereof given at any time on at least
30 but not more than 60 calendar  days notice prior to the  redemption  date, if
any, in the case of the  MOPPRS/CHEERS  Spread Period, or during the 30 calendar
day period ending on the eighth  Business Day prior to the  Redemption  Date, in
the case of a Subsequent  Spread Period,  in accordance with the redemption type
selected.

         The redemption type may be one of the following:

o             Par  Redemption:  redemption at a redemption  price equal to 100%
              of the principal  amount  thereof,  plus unpaid interest thereon,
              if any, accrued to the redemption date.

o             Premium  Redemption:  redemption  at a redemption  price or prices
              greater than 100% of the  principal  amount  thereof,  plus unpaid
              interest  thereon,  if any,  accrued to the  redemption  date,  as
              determined on the applicable Mode Terms Designation Date.

                                       23
<PAGE>

o        Make-Whole Redemption:  redemption at a redemption price equal to the
Make-Whole Amount.

         If the  Securities  are  subject  to  optional  redemption  during  the
MOPPRS/CHEERS  Spread Period or any  Subsequent  Spread Period and no redemption
type has been designated, the redemption type will be Par Redemption.

         If less than all of the Securities  are to be redeemed,  the Securities
(or  portions  thereof) to be redeemed  shall be selected by the Trustee by such
method as the Trustee shall deem fair and  appropriate  in  accordance  with the
Indenture.

15.      Determination of a Floating Rate Basis or a Fixed Rate Basis.

         (a) Floating Rate. The Floating Rate Basis for any Spread Period during
which  Securities  bear  interest  at a  Floating  Rate shall be  determined  by
reference to (i) the CMT Rate, (ii) the Commercial Paper Rate, (iii) LIBOR, (iv)
the Federal Funds Rate, (v) the Prime Rate (vi) the Seven-Day  Commercial  Paper
Rate, (vii) the Treasury Rate or (viii) the  Weekly-Average  Federal Funds Rate,
or such other Floating Rate Basis as may be designated by the Company, after the
consultation  with the applicable  Remarketing  Dealer or Dealers or Remarketing
Reset Agent, in each case as selected on the applicable  Mode Terms  Designation
Date.

         If this  Security is to bear interest at a Floating  Rate,  then during
the corresponding  Spread Period, (i) unless otherwise  specified for a Floating
Rate on the applicable  Mode Terms  Designation  Date, the interest rate on this
Security shall be reset daily, weekly, monthly, quarterly or semiannually (each,
an "Interest Reset Period") and this Security shall bear interest at a per annum
rate  (computed on the basis of the actual number of days elapsed over a 360-day
year, if the Floating Rate Basis is the Commercial Paper Rate, the Federal Funds
Rate,  LIBOR,  the  Prime  Rate,  the  Seven-Day  Commercial  Paper  Rate or the
Weekly-Average  Federal  Funds Rate or on the basis of the actual number of days
in the year,  if the Floating  Rate Basis is the CMT Rate or the Treasury  Rate)
equal to the applicable  Floating Rate Basis for the  applicable  Interest Reset
Period, plus or minus the applicable Spread,  Short Term Spread or MOPPRS/CHEERS
Spread , as the case may be, and (ii) interest on this Security shall be payable
either monthly,  quarterly,  semiannually or otherwise, on such dates (each such
date, an "Interest  Payment Date" in respect of the applicable Spread Period) as
specified on the applicable date.  Unless  otherwise  specified in the case of a
Floating  Rate,  interest on this  Security  will be  payable,  in the case of a
Floating  Rate which  resets (i) daily,  weekly or  monthly,  on the 7th of each
month;  (ii) quarterly,  on the each February 7, May 7, August 7 and November 7;
and  (iii)  semiannually,  on each May 7 and  November  7. The  first  day of an
Interest  Reset Period is referred to herein as an  "Interest  Reset Date," and,
unless otherwise specified,  the Interest Reset Dates for any Spread Period will
be in the case of a Floating  Rate which resets (i) daily,  each  Business  Day,
(ii) weekly, on Wednesday of each week, or, in the case of the Treasury Rate, on
Tuesday of each week, or , in the case of the Weekly-Average Federal Funds Rate,
on Monday of each week, (iii) monthly, on the 7th of each month; (iv) quarterly,
on the  Monday  of each  February  7, May 7,  August 7 and  November  7; and (v)
semiannually, on each May 7 and November 7.

                                       24
<PAGE>

         Unless  otherwise  specified on the applicable  Mode Terms  Designation
Date,  the  interest  rate with  respect to each  Floating  Rate Basis  shall be
determined in accordance with the applicable provisions below. The interest rate
in effect on each day will be (i) if such day is an  Interest  Reset  Date,  the
interest  rate  determined  as of the Interest  Determination  Date  immediately
preceding  such Interest Reset Date or (ii) if such day is not an Interest Reset
Date,  the  interest  rate  determined  as of the  Interest  Determination  Date
immediately preceding the most recent Interest Reset Date.

         If any  Interest  Reset  Date  would  otherwise  be a day that is not a
Business Day, the particular  Interest Reset Date shall be postponed to the next
succeeding  Business Day,  except that if LIBOR is the applicable  Floating Rate
Basis and that Business Day falls in the next  succeeding  calendar  month,  the
particular Interest Reset Date shall be the immediately  preceding Business Day.
In addition,  if the Treasury Rate is the applicable Floating Rate Basis and the
Interest  Determination Date would otherwise fall on an Interest Reset Date, the
particular  Interest  Reset  Date  shall be  postponed  to the  next  succeeding
Business Day.

         The interest rate  applicable to each Interest Reset Period  commencing
on the  related  Interest  Reset  Date  shall be the rate  determined  as of the
applicable "Interest Determination Date", which shall be:

o             with respect to the Commercial Paper Rate, the Federal Funds Rate,
              the  Prime  Rate,  the  Seven-Day  Commercial  Paper  Rate and the
              Weekly-Average  Federal Funds Rate - the Business Day  immediately
              preceding the related Interest Reset Date;

o with respect to the CMT Rate - the second  Business Day  preceding the related
Interest Reset Date;

o with respect to LIBOR - the second  London  Business Day preceding the related
Interest Reset Date; and

o             with respect to the  Treasury  Rate - the day in the week in which
              the related  Interest Reset Date falls on which day Treasury Bills
              are normally auctioned (i.e.,  Treasury Bills are normally sold at
              auction  on  Monday  of  each  week,  unless  that  day is a legal
              holiday,  in  which  case  the  auction  is  normally  held on the
              following  Tuesday,  except  that the  auction  may be held on the
              preceding Friday);  provided,  however, that if an auction is held
              on the Friday of the week  preceding  the related  Interest  Reset
              Date,  the  Interest  Determination  Date  will  be the  preceding
              Friday.

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

         The "Index  Maturity"  means the  designated  period to maturity of the
instrument or obligation  with respect to which the related  Floating Rate Basis
will be calculated.

                                       25
<PAGE>

         The  Calculation  Agent shall  determine  each  Floating  Rate Basis in
accordance with the following provisions:

         CMT Rate. "CMT Rate" means:

(1)      if CMT Telerate Page 7051 is selected for the applicable Spread Period:

(a) the percentage  equal to the yield for United States Treasury  securities at
"constant  maturity"  having the Index Maturity  selected on the applicable Mode
Terms  Designation  Date as published in H.15(519)  under the caption  "Treasury
Constant Maturities", as the yield is displayed on Bridge Telerate, Inc. (or any
successor  service) on page 7051 (or any other page as may replace the specified
page on that  service)  ("Telerate  Page  7051"),  for the  particular  Interest
Determination Date; or

(b)               if the rate  referred  to in clause  (a) does not so appear on
                  Telerate  Page  7051,  the  percentage  equal to the yield for
                  United  States  Treasury  securities  at  "constant  maturity"
                  having the  particular  Index  Maturity and for the particular
                  Interest  Determination  Date as published in H.15(519)  under
                  the caption "Treasury Constant Maturities"; or

(c)               if the rate  referred  to in clause  (b) does not so appear in
                  H.15(519),  the rate on the particular Interest  Determination
                  Date for the period of the  particular  Index  Maturity as may
                  then be published by either the Federal  Reserve  System Board
                  of Governors or the United  States  Department of the Treasury
                  that the Calculation  Agent determines to be comparable to the
                  rate which would  otherwise  have been published in H.15(519);
                  or

(d)            if the rate  referred to in clause (c) is not so  published,  the
               rate on the particular Interest  Determination Date calculated by
               the  Calculation  Agent  as a  yield  to  maturity  based  on the
               arithmetic   mean  of  the   secondary   market   bid  prices  at
               approximately  3:30 P.M.,  New York City time,  on that  Interest
               Determination   Date  of  three  leading  primary  United  States
               government  securities dealers in The City of New York (which may
               include the Remarketing  Reset Agent or its affiliates or, as the
               case may be, the Remarketing Dealers or their affiliates) (each a
               "Reference Dealer"),  selected by the Calculation Agent from five
               Reference   Dealers   selected  by  the  Calculation   Agent  and
               eliminating the highest quotation,  or, in the event of equality,
               one of the highest,  and the lowest quotation or, in the event of
               equality,   one  of  the  lowest,   for  United  States  Treasury
               securities  with an  original  maturity  equal to the  particular
               Index  Maturity,  a  remaining  term to maturity no more than one
               year shorter than that Index  Maturity and in a principal  amount
               that is representative for a single transaction in the securities
               in that market at that time; or

(e)               if fewer than five but more than two of the prices referred to
                  in  clause  (d) are  provided  as  requested,  the rate on the
                  particular  Interest  Determination  Date  calculated  by  the
                  Calculation  Agent  based  on the  arithmetic  mean of the bid

                                       26
<PAGE>

                  prices  obtained and neither the highest nor the lowest of the
                  quotations shall be eliminated; or

(f)            if fewer than three prices referred to in clause (d) are provided
               as requested,  the rate on the particular Interest  Determination
               Date calculated by the  Calculation  Agent as a yield to maturity
               based on the arithmetic  mean of the secondary  market bid prices
               as of  approximately  3:30  P.M.,  New York  City  time,  on that
               Interest  Determination  Date of three Reference Dealers selected
               by the Calculation  Agent from five Reference Dealers selected by
               the Calculation  Agent and eliminating the highest  quotation or,
               in the  event of  equality,  one of the  highest  and the  lowest
               quotation  or, in the event of equality,  one of the lowest,  for
               United  States  Treasury  securities  with an  original  maturity
               greater than the particular  Index Maturity,  a remaining term to
               maturity closest to that Index Maturity and in a principal amount
               that is representative for a single transaction in the securities
               in that market at that time; or

(g)               if fewer  than five but more than two  prices  referred  to in
                  clause  (f)  are  provided  as  requested,  the  rate  on  the
                  particular  Interest  Determination  Date  calculated  by  the
                  Calculation  Agent  based  on the  arithmetic  mean of the bid
                  prices  obtained and neither the highest nor the lowest of the
                  quotations will be eliminated; or

(h)               if fewer  than  three  prices  referred  to in clause  (f) are
                  provided  as  requested,   the  CMT  Rate  in  effect  on  the
                  particular Interest Determination Date.

(2)      if CMT Telerate Page 7052 is selected for the applicable Spread Period:

          (a) the percentage equal to the one-week or one-month,  as selected on
     the applicable Mode Terms Designation Date, average yield for United States
     Treasury  securities  at  "constant  maturity"  having  the Index  Maturity
     selected on the  applicable  Date,  as published in H.15(519)  opposite the
     caption "Treasury Constant Maturities", as the yield is displayed on Bridge
     Telerate,  Inc. (or any successor  service) (on page 7052 or any other page
     as may replace the specified page on that service)  ("Telerate Page 7052"),
     for the week or month, as applicable,  ended immediately preceding the week
     or month,  as applicable,  in which the particular  Interest  Determination
     Date falls; or

          (b) if the rate  referred  to in  clause  (a) does  not so  appear  on
     Telerate Page 7052, the percentage  equal to the one-week or one-month,  as
     selected on the applicable Mode Terms Determination Date, average yield for
     United  States  Treasury  securities  at  "constant  maturity"  having  the
     particular  Index  Maturity  and for  the  week or  month,  as  applicable,
     preceding  the  particular  Interest  Determination  Date as  published  in
     H.15(519) opposite the caption "Treasury Constant Maturities"; or

          (c) if the rate  referred  to in  clause  (b) does  not so  appear  in
     H.15(519),  the  one-week  or  one-month,  as  selected  on the Mode  Terms
     Designation  Date,

                                       27
<PAGE>

    average yield for United States Treasury  securities at "constant
    maturity"  having the  particular  Index  Maturity as  otherwise announced
    by the Federal Reserve Bank of New York for the week or month, as
    applicable,  ended immediately  preceding the week or month, as applicable,
    in which the particular Interest Determination Date falls; or

          (d) if the rate  referred  to in clause (c) is not so  published,  the
     rate  on the  particular  Interest  Determination  Date  calculated  by the
     Calculation  Agent as a yield to maturity based on the  arithmetic  mean of
     the secondary market bid prices at  approximately  3:30 P.M., New York City
     time,  on that  Interest  Determination  Date of  three  Reference  Dealers
     selected by the Calculation  Agent from five Reference  Dealers selected by
     the Calculation  Agent and eliminating  the highest  quotation,  or, in the
     event of equality,  one of the highest, and the lowest quotation or, in the
     event of equality, one of the lowest, for United States Treasury securities
     with an  original  maturity  equal  to the  particular  Index  Maturity,  a
     remaining  term to maturity no more than one year  shorter  than that Index
     Maturity  and in a  principal  amount that is  representative  for a single
     transaction in the securities in that market at that time; or

          (e) if fewer than five but more than two of the prices  referred to in
     clause (d) are provided as requested,  the rate on the particular  Interest
     Determination  Date  calculated  by  the  Calculation  Agent  based  on the
     arithmetic  mean of the bid prices obtained and neither the highest nor the
     lowest of the quotations shall be eliminated; or

          (f) if fewer than three prices  referred to in clause (d) are provided
     as  requested,  the  rate on the  particular  Interest  Determination  Date
     calculated  by the  Calculation  Agent as a yield to maturity  based on the
     arithmetic mean of the secondary market bid prices as of approximately 3:30
     P.M.,  New York City time,  on that  Interest  Determination  Date of three
     Reference  Dealers  selected by the  Calculation  Agent from five Reference
     Dealers  selected  by the  Calculation  Agent and  eliminating  the highest
     quotation  or, in the event of equality,  one of the highest and the lowest
     quotation  or, in the event of  equality,  one of the  lowest,  for  United
     States  Treasury  securities  with an original  maturity  greater  than the
     particular  Index  Maturity,  a remaining term to maturity  closest to that
     Index  Maturity  and in a  principal  amount that is  representative  for a
     single transaction in the securities in that market at the time; or

          (g) if fewer than five but more than two prices  referred to in clause
     (f)  are  provided  as  requested,  the  rate  on the  particular  Interest
     Determination  Date  calculated  by  the  Calculation  Agent  based  on the
     arithmetic  mean of the bid prices  obtained and neither the highest or the
     lowest of the quotations will be eliminated; or

          (h) if fewer than three prices  referred to in clause (f) are provided
     as requested, the CMT Rate in effect on that Interest Determination Date.

                                       28
<PAGE>

         If two United  States  Treasury  securities  with an original  maturity
greater  than  the  Index  Maturity   selected  on  the  applicable  Mode  Terms
Designation  Date,  have  remaining  terms  to  maturity  equally  close  to the
particular  Index Maturity,  the quotes for the United States Treasury  security
with the shorter original remaining term to maturity will be used.

         Commercial Paper Rate.  "Commercial Paper Rate" means:

(1)               the Money Market Yield on the Interest  Determination  Date of
                  the  rate for  commercial  paper  having  the  Index  Maturity
                  selected  on  the  applicable  Mode  Terms   Designation  Date
                  published   in   H.15(519)   under  the  caption   "Commercial
                  Paper-Nonfinancial"; or

(2)               if the rate  described  in clause (1) is not so  published  by
                  3:00 P.M.,  New York City  time,  on the  related  Calculation
                  Date,  the  rate  on  the  Interest   Determination  Date  for
                  commercial  paper  having the Index  Maturity  selected on the
                  applicable  Mode Terms  Designation  Date,  published  in H.15
                  Daily Update,  or other recognized  electronic source used for
                  the  purpose of  displaying  the  applicable  rate,  under the
                  caption "Commercial Paper-Nonfinancial"; or

(3)           if the  rates  referred  to in  clauses  (1)  and  (2)  are not so
     published  by 3:00 P.M.,  New York City time,  on the  related  calculation
     date,  the  rate  on the  Interest  Determination  Date  calculated  by the
     Calculation  Agent as the Money Market Yield of the arithmetic  mean of the
     offered  rates at  approximately  11:00  A.M.,  New York City time,  on the
     Interest  Determination  Date of three  leading  dealers  of United  States
     dollar  commercial  paper in The City of New York  (which may  include  the
     Remarketing  Reset  Agent and its  affiliates  or, as the case may be,  the
     Remarketing  Dealers and their  affiliates),  selected  by the  Calculation
     Agent for  commercial  paper  having  the Index  Maturity  selected  on the
     applicable Mode Terms Designation Date, placed for industrial issuers whose
     bond  rating  is "Aa",  or the  equivalent,  from a  nationally  recognized
     statistical rating organization; or

(4)           if the dealers  selected by the Calculation  Agent are not quoting
     as  mentioned  in clause (3),  the  Commercial  Paper Rate in effect on the
     Interest Determination Date.

         Federal Funds Rate.  "Federal Funds Rate" means:

(1)               the rate on the Interest  Determination Date for United States
                  dollar  federal  funds as  published  in  H.15(519)  under the
                  heading  "Federal Funds  (Effective)",  as displayed on Bridge
                  Telerate,  Inc.  or any  successor  service on page 120 or any
                  other page as may replace the applicable  page on that service
                  ("Telerate Page 120"); or

(2)               if the rate  referred  to in  clause  (1) does not  appear  on
                  Telerate  Page 120 or is not so  published  by 3:00 P.M.,  New
                  York City time, on the related  Calculation  Date, the rate on
                  the  Interest  Determination  Date for  United  States  dollar
                  federal  funds  published  in  H.15  Daily  Update,  or  other
                  recognized   electronic   source   used  for

                                       29
<PAGE>

                  the  purpose  of displaying the  applicable  rate,  under the
                  caption  "Federal Funds/Effective Rate"; or

          (3)  if the  rates  referred  to in  clauses  (1)  and  (2) are not so
               published  by 3:00  P.M.,  New York  City  time,  on the  related
               Calculation  Date,  the rate on the Interest  Determination  Date
               calculated by the Calculation Agent as the arithmetic mean of the
               rates for the last  transaction in overnight United States dollar
               federal funds arranged by three leading  brokers of United States
               dollar federal funds  transactions in The City of New York (which
               may include the Remarketing  Reset Agent or its affiliates or, as
               the case may be, the  Remarketing  Dealers or their  affiliates),
               selected by the Calculation Agent before 9:00 A.M., New York City
               time, on the Interest Determination Date; or

          (4)  if the brokers selected by the Calculation  Agent are not quoting
               as mentioned  in clause (3), the Federal  Funds Rate in effect on
               the Interest Determination Date.

         LIBOR.  "LIBOR" means:

          (1)     the  rate for  deposits  in U.S.  dollars,  having  the  Index
                  Maturity  selected on the  applicable  Mode Terms  Designation
                  Date,  or on  November  2,  2000,  in the case of the  Initial
                  Period, commencing on the Interest Reset Date, that appears as
                  of  11:00  A.M.,  London  time,  on  the  particular  Interest
                  Determination Date on the display on Bridge Telerate,  Inc. or
                  any successor  service on page 3750 or any page as may replace
                  the  specified  page  on  that  service  for  the  purpose  of
                  displaying the London  interbank rates of major banks for U.S.
                  dollars ("Telerate Page 3750"); or

          (2)  if no rate appears on the particular Interest  Determination Date
               on  Telerate  Page  3750 as  specified  in clause  (1),  the rate
               calculated by the Calculation  Agent as the arithmetic mean of at
               least two offered  quotations  obtained by the Calculation  Agent
               after  requesting  the principal  London  offices of each of four
               major  reference  banks  (which  may  include  affiliates  of the
               Remarketing  Reset Agent or, as the case may be, the  Remarketing
               Dealers)   in  the  London   interbank   market  to  provide  the
               Calculation Agent with its offered quotation for deposits in U.S.
               dollars  for  the  period  of  the   applicable   Index  Maturity
               commencing on the related  Interest Reset Date, by prime banks in
               the London interbank market at approximately  11:00 A.M.,  London
               time,  on that  Interest  Determination  Date and in a  principal
               amount that is  representative  for a single  transaction in U.S.
               dollars in that market at that time; or

          (3)  if fewer than two  offered  quotations  referred to in clause (2)
               are so  provided,  the rate on the  Interest  Determination  Date
               calculated by the Calculation Agent as the arithmetic mean of the
               rates  quoted at  approximately  11:00  A.M.,  in The City of New
               York,  on the  Interest  Determination  Date by three major banks
               (which may include  affiliates of the Remarketing Reset Agent or,
               as the case may be, the Remarketing  Dealers), in The City of New
               York selected by the Calculation  Agent for loans in U.S. dollars
               to leading  European banks,  having the applicable

                                       31
<PAGE>

               Index Maturity and in a  principal  amount that is representative
               for a single transaction in U.S. dollars in that market at that
               time;

          (4)  if the banks so selected by the Calculation Agent are not quoting
               as  mentioned  in clause (3),  LIBOR in effect on the  particular
               Interest Determination Date.

         Prime Rate.   "Prime Rate" means:

          (1)  the  rate on the  Interest  Determination  Date as  published  in
               H.15(519) under the heading "Bank Prime Loan"; or

          (2)  if the rate referred to in clause (1) is not so published by 3:00
               P.M.,  New York City time, on the related  Calculation  Date, the
               rate on the Interest  Determination  Date published in H.15 Daily
               Update,  or another  recognized  electronic  source  used for the
               purpose of displaying the applicable rate under the caption "Bank
               Prime Loan"; or

          (3)  if the  rates  referred  to in  clauses  (1)  and  (2) are not so
               published  by 3:00  P.M.,  New York  City  time,  on the  related
               Calculation Date, the rate calculated by the Calculation Agent as
               the arithmetic mean of the rates of interest  publicly  announced
               by each bank that  appears on the Reuters  Screen  USPRIME 1 Page
               (as defined  below) as the  particular  bank's prime rate or base
               lending  rate as of  11:00  A.M.,  New  York  City  time,  on the
               Interest Determination Date; or

          (4)  if fewer  than four rates  described  in clause (3) by 3:00 P.M.,
               New York City time, on the related  Calculation Date are shown on
               Reuters Screen USPRIME 1, the rate on the Interest  Determination
               Date calculated by the  Calculation  Agent as the arithmetic mean
               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  banks   (which  may  include   affiliates   of  the
               Remarketing  Reset Agent or, as the case may be, the  Remarketing
               Dealers)  in The City of New  York  selected  by the  Calculation
               Agent; or

          (5)  if the banks selected by the Calculation Agent are not quoting as
               mentioned in clause (4), the Prime Rate in effect on the Interest
               Determination Date.
         "Reuters  Screen  USPRIME 1 Page" means the display  designated as page
"USPRIME 1" on the Reuter Monitor Money Rates Service (or any successor service)
on the  USPRIME 1 Page (or such other page as may  replace the USPRIME 1 Page on
such service) for the purpose of displaying prime rates or base lending rates of
major United States banks.

         Seven-Day Commercial Paper Rate.  "Seven Day Commercial Paper Rate"
means:

(1)               the  Money  Market  Yield  of  the  7-day  "AA"   nonfinancial
                  Commercial  Paper  Rate shown on the  internet  world wide web
                  page (or any successor  page) of the Board of Governors of the
                  Federal  Reserve System  (www.bog.frb.fed.us/releases/CP/)  at

                                       31
<PAGE>

                  11:00 a.m., New York City time, on the Interest  Determination
                  Date for the Business Day immediately  preceding such Interest
                  Determination Date; or

          (2)  if the rate  described  in clause (1) is not so published by 3:00
               P.M.,  New York City time, on the related  Calculation  Date, the
               rate on the  Interest  Determination  Date for the  Business  Day
               immediately preceding such Interest Determination Date calculated
               by  the  Calculation  Agent  as the  Money  Market  Yield  of the
               arithmetic mean of the offered rates at approximately 11:00 A.M.,
               New York City time, on the Interest  Determination  Date of three
               leading dealers of United States dollar  commercial  paper in The
               City of New York (which may include the  Remarketing  Dealers and
               their  affiliates or, as the case may be, the  Remarketing  Reset
               Agent and its affiliates),  selected by the Calculation Agent for
               7-day commercial  paper placed for industrial  issuers whose bond
               rating is "Aa", or the equivalent,  from a nationally  recognized
               statistical rating organization; or

          (3)  if the dealers selected by the Calculation  Agent are not quoting
               as mentioned in clause (2), the Seven- Day Commercial  Paper Rate
               in effect on the Interest Determination Date.

         Treasury Rate.  "Treasury Rate" means:

          (1)  the rate from the auction held on the Interest Determination Date
               (the  "Auction")  of  direct  obligations  of the  United  States
               ("Treasury  Bills")  having the Index  Maturity  selected  on the
               applicable  Mode  Terms   Designation  Date,  under  the  caption
               "INVESTMENT RATE" on the display on Bridge Telerate, Inc. (or any
               successor  service)  on page 56 (or any other page as may replace
               that page on that  service)  ("Telerate  Page 56") or page 57 (or
               any  other  page  as may  replace  that  page  on  that  service)
               ("Telerate Page 57"); or

          (2)  if the rate referred to in clause (1) is not so published by 3:00
               P.M.,  New York City time, on the related  Calculation  Date, the
               Bond  Equivalent  Yield  (as  defined  below) of the rate for the
               applicable  Treasury Bills as published in H.15 Daily Update,  or
               another  recognized  electronic  source  used for the  purpose of
               displaying   the  applicable   rate,   under  the  caption  "U.S.
               Government Securities/Treasury Bills/Auction High"; or

          (3)  if the rate referred to in clause (2) is not so published by 3:00
               P.M.,  New York City time, on the related  Calculation  Date, the
               Bond  Equivalent  Yield  of the  auction  rate of the  applicable
               Treasury  Bills as announced by the United  States  Department of
               the Treasury; or

          (4)  if the rate  referred to in clause (3) is not so announced by the
               United States  Department  of the Treasury,  or if the Auction is
               not held, the Bond Equivalent Yield of the rate on the particular
               Interest  Determination Date of the applicable  Treasury Bills as
               published  in  H.15(519)  under  the  caption  "U.S.   Government
               Securities/Treasury Bills/Secondary Market"; or

                                       32
<PAGE>

          (5)  if the rate referred to in clause (4) is not so published by 3:00
               P.M.,  New York City time, on the related  Calculation  Date, the
               rate  on  the  particular  Interest  Determination  Date  of  the
               applicable  Treasury Bills as published in H.15 Daily Update,  or
               another  recognized  electronic  source  used for the  purpose of
               displaying   the  applicable   rate,   under  the  caption  "U.S.
               Government Securities/Treasury Bills/Secondary Market"; or

          (6)  if the rate referred to in clause (5) is not so published by 3:00
               P.M.,  New York City time, on the related  Calculation  Date, the
               rate on the particular Interest  Determination Date calculated by
               the  Calculation  Agent  as  the  Bond  Equivalent  Yield  of the
               arithmetic  mean  of  the  secondary  market  bid  rates,  as  of
               approximately  3:30 P.M.,  New York City time,  on that  Interest
               Determination  Date,  of three primary  United States  government
               securities dealers (which may include the Remarketing Reset Agent
               or its affiliates or, as the case may be, the Remarketing Dealers
               or their  affiliates)  selected by the Calculation  Agent for the
               issue of Treasury Bills with a remaining  maturity closest to the
               Index Maturity  selected on the applicable Mode Terms Designation
               Date; or

          (7)  if the  dealers  so  selected  by the  Calculation  Agent are not
               quoting as mentioned  in clause (6), the Treasury  Rate in effect
               on the particular Interest Determination Date.

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

               [Bond equivalent yield equals D times N divided by 360 minus
               (D times M), all mutiplied by 100.]

where "D" refers to the applicable per annum rate for Treasury Bills quoted on a
bank discount basis and expressed as a decimal, "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.

         Weekly-Average Federal Funds Rate.  "Weekly-Average Federal Funds Rate
" means:

          (1)  the rate equal to the weekly  average rate for the week ending in
               the week in which  the  particular  Interest  Determination  Date
               falls for United  States  dollar  federal  funds as  published in
               H.15(519)  under the caption  "Federal  Funds  (Effective),  Week
               Ending"; or

          (2)  if the rate referred to in clause (1) is not so published by 3:00
               P.M.,  New York City time, on the related  Calculation  Date, the
               rate on the  particular  Interest  Determination  Date for United
               States dollar federal funds as published in H.15 Daily Update, or
               such other recognized  electronic  source used for the purpose of
               displaying the applicable  rate, under the caption "Federal Funds
               (Effective), Week Ending"; or
                                       33
<PAGE>

          (3)  if the rate referred to in clause (2) is not so published by 3:00
               P.M.,  New York City time, on the related  Calculation  Date, the
               rate on the particular Interest  Determination Date calculated by
               the Calculation Agent as the arithmetic mean of the rates for the
               last  transaction in overnight United States dollar federal funds
               arranged by three leading brokers of United States dollar federal
               funds transactions in The City of New York (which may include the
               Remarketing  Dealers or their  affiliates or, as the case may be,
               the Remarketing  Reset Agent or its  affiliates)  selected by the
               Calculation Agent prior to 9:00 A.M., New York City time, on that
               Interest Determination Date; or

          (4)  if the brokers selected by the Calculation  Agent are not quoting
               as mentioned in clause (3) the Weekly-Average  Federal Funds Rate
               in effect on the Interest Determination Date.

         (b) Fixed Rate.  The "Fixed Rate Basis" for any Spread Period means the
semiannual  equivalent yield to maturity or interpolated yield to maturity (on a
day  count  basis)  determined  by  1:00  p.m.,  New  York  City  time,  on  the
MOPPRS/CHEERS  Spread  Determination  Date for the MOPPRS/CHEERS Mode or, as the
case may be, on the Fixed Interest  Determination Date for any Subsequent Spread
Period  (expressed  as a bond  equivalent,  on the basis of a year of 365 or 366
days,  as  applicable,  and applied on a daily basis) of the  applicable  United
States Treasury security (or securities in the case of interpolation),  selected
by the  Calculation  Agent after  consultation  with the applicable  Remarketing
Dealer or, as the case may be, the Remarketing Reset Agent, as having a maturity
or  interpolated  maturities  comparable  to the term selected for the following
Spread  Period,  which  would be used in  accordance  with  customary  financial
practice  in pricing  new issues of  corporate  debt  securities  of  comparable
maturity to the term selected for the following Spread Period.

         Interest  shall be payable  semiannually  in  arrears  on the  Interest
Payment Dates specified on the applicable Mode Terms Designation Date at (i) the
MOPPRS/CHEERS  Rate  beginning  on the  applicable  Mandatory  Tender  Date  and
continuing for the term of the  MOPPRS/CHEERS  Spread Period, in the case of the
MOPPRS/CHEERS  Mode,  or  (ii)  the  applicable  Fixed  Rate,  beginning  on the
applicable  Optional Tender Date and continuing for the duration of the relevant
Subsequent Spread Period,  in the case of the Remarketing  Reset Mode.  Interest
shall be computed on the basis of a 360-day year of twelve 30-day months.

16.  Effect of Events of  Default.  If an Event of  Default,  as  defined in the
Indenture, shall occur and be continuing, the principal of the Securities may be
declared  due and  payable in the manner  and with the  effect  provided  in the
Indenture.

17. Defeasance.  Notwithstanding  any provision to the contrary in the Indenture
or  otherwise,  prior  to the  Mandatory  Tender  Date  for  remarketing  in the
MOPPRS/CHEERS  Mode,  neither  the  Company  nor  any  of  its  subsidiaries  or
affiliates  shall  defease,  purchase or  otherwise  acquire,  or enter into any
agreement to defease, purchase or otherwise acquire, any of the Securities prior
to the remarketing thereof by the applicable Remarketing Dealer.

18.  Maintenance  in  Book-Entry  Form.  Notwithstanding  any  provision  to the
contrary set forth in the  Indenture,  the Company (i) shall use its  reasonable
efforts to maintain the

                                       34
<PAGE>

Securities in book-entry  form with DTC or any successor thereto  and to appoint
a  successor  depositary  to the  extent  necessary  to maintain the Securities
in book-entry  form,  and (ii) waives any  discretionary right it otherwise has
under the Indenture to cause the  Securities to be issued in  certificated form,
unless such  issuance is required by law or judicial or administrative order.

19.  Obligation to Pay Principal,  Premium,  if any, and Interest.  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  principal,  premium,  if any, and interest in respect of
this  Security at the times,  places and rate or formula,  and in the manner and
coin or currency, herein prescribed.

         No director,  officer, employee or stockholder, as such, of the Company
shall have any liability for any  obligations of the Company under this Security
or the  Indenture  or for any claim based on, in respect of or by reason of such
obligations or their creation.  Each Holder, by accepting this Security,  waives
and  releases  all  such  liability.  The  waiver  and  release  are part of the
consideration for the issue of this Security.

         20.  CUSIP  Number.  Pursuant to a  recommendation  promulgated  by the
Committee on Uniform Note  Identification  Procedures,  the Company has caused a
CUSIP number to be printed on this  Security and has directed the Trustee to use
the CUSIP number as a convenience to Holders.  No  representation  is made as to
the  correctness  of such  numbers and  reliance  may be place only on the other
identification numbers printed on this Security.

         21. Amendment and  Modification.  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  at any time by the Company  and the Trustee  with the consent of the
Holders of not less than a majority  of the  aggregate  principal  amount of all
Securities  at the time  outstanding.  The Indenture  also  contains  provisions
permitting  the Holders of not less than a majority of the  aggregate  principal
amount of the  outstanding  Securities,  on behalf  of the  Holders  of all such
Securities,  to waive  compliance by the Company with certain  provisions of the
Indenture.  Furthermore,  provisions in the Indenture  permit the Holders of not
less than a  majority  of the  aggregate  principal  amount  of the  outstanding
Securities,  in certain instances,  to waive, on behalf of all of the Holders of
Securities,  certain past defaults  under the Indenture and their  consequences.
Any such consent or waiver by the Holder of this  Security  shall be  conclusive
and binding  upon such Holder and upon all future  Holders of this  Security and
other Securities  issued upon the registration or transfer hereof or in exchange
herefor or in lieu hereof,  whether or not notation or such consent or waiver is
made upon this Security.  Without the consent of any Holder, (i) the Company and
the Trustee may amend or supplement  the Indenture or the Securities to cure any
ambiguity, defect or inconsistency or to make certain other specified changes or
any change that does not  materially  adversely  affect the rights of any Holder
and (ii) the tender and  settlement  procedures  may be  modified as provided in
Sections 11 and 13(c) above.  Holders of Securities may not enforce their rights
pursuant  to  the  Indenture  or  the  Securities  except  as  permitted  in the
Indenture.

         22.  Treatment for United  States  Federal  Income Tax  Purposes.  Each
Holder of this Security, by virtue of its purchase hereof,  agrees, with respect
to the period from the Original Issue Date to the Initial Mandatory Tender Date,
to (a) treat this Security,  for United States

                                       35
<PAGE>

federal,  state and local income tax purposes,  as a variable rate debt
instrument (as defined in U.S.  Treasury Regulation  Section  1.1275-5) that
matures on the Initial Mandatory Tender Date and bears  qualified  stated
interest (as defined in U.S.  Treasury  Regulation Section  1.1273-1(c)),  and
(b) file all United States federal,  state and local income, franchise and
estate tax returns consistent with the treatment set forth in clause (a) of this
Section (in the absence of any change or  clarification in applicable law,   by
regulation   or   otherwise,   requiring   a  different characterization or
treatment thereof).

         23. Transfer and Exchange.  As provided in the Indenture and subject to
certain  limitations  therein and herein set forth (including without limitation
the restrictions on transfer under the Indenture in the event this Security is a
global Security as evidenced by the legend first set forth above and provided in
the  Indenture),  the transfer of this Security is  registrable  in the Security
Register of the Company upon  surrender of this  Security  for  registration  of
transfer at the office or agency of the  Security  Registrar  in The City of New
York, New York designated for such purpose,  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 by his attorney duly
authorized in writing,  and thereupon one or more new Securities,  of authorized
denominations and for the same aggregate  principal amount and otherwise bearing
identical terms and provisions,  will be issued to the designated  transferee or
transferees.

         As provided in the Indenture and subject to certain limitations therein
and herein set forth (including  without limitation the restrictions on transfer
under the Indenture in the event this Security is a global Security as evidenced
by the  legend  first  set forth  above and  provided  in the  Indenture),  this
Security is exchangeable for a like aggregate  principal amount of Securities of
different  authorized  denominations  but  otherwise  having  the same terms and
conditions,  as  requested  by the Holder  hereof  surrendering  the same at the
office or agency of the  Security  Registrar  in The City of New York,  New York
designated for such purpose.

         No service charge shall be made for any such  registration  of transfer
or exchange of Securities, but the Company or the Security Registrar may require
payment of a sum sufficient to cover any tax or other  governmental  charge that
may be imposed in relation thereto.  Initially, the Trustee will act as Security
Registrar  and the  office  at  which  this  Security  must be  surrendered  for
registration of transfer or exchange is currently the corporate trust department
of the Trustee at 101 Barclay Street, New York, New York 10286.

         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 person in whose name this  Security is  registered  as the owner thereof for
all purposes,  whether or not this Security be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

         24. Governing Law. The Indenture and this Security shall be governed by
and construed in accordance with the laws of the State of New York applicable to
agreements  made and to be performed  entirely in such State  without  regard to
conflict of law principles.

                                       36

<PAGE>

                                  ABBREVIATIONS

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

TEN COM  -  as tenants in common
UNIF GIFT MIN ACT  -              Custodian
                      -----------           ------------
                       (Cust)                  (minor)
                          under Uniform Gifts to Minors Act

                              ----------------------(State)

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

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

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

                                   ASSIGNMENT

         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 typewrite name and address including postal zip code of
 assignee)

                                                           this Security and all
rights thereunder hereby irrevocably constituting and appointing

                                              Attorney to transfer this Security
on the books of the Trustee, with full power of substitution in the premises.

Dated:

                                                     Notice: The signature(s) on
                                                     this     Assignment    must
                                                     correspond with the name(s)
                                                     as written upon the face of
                                                     this   Security   in  every
                                                     particular,         without
                                                     alteration  or  enlargement
                                                     or any change whatsoever.

--------
    "MandatOry Par Put Remarketed SecuritiesSM" and "MOPPRSSM" are service marks
owned by Merrill Lynch & Co., Inc.
    "CHase                                         ExtendiblE       Remarketable
                                                   SecuritiesSM"  and "CHEERSSM"
                                                   are  service   marks  of  The
                                                   Chase Manhattan Corporation.

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