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Prepared by MERRILL CORPORATION

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Exhibit 4.4    
  

    [FACE OF NOTE] 

UNLESS
THIS NOTE 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 NOTE 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.(1) 

UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE 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.(2) 

	(1)
	This
paragraph applies to global Notes only.

	(2)
	This
paragraph applies to global Notes only. 

	REGISTERED No. SNR/FLR—	 	CUSIP No.:	 	PRINCIPAL AMOUNT:

BOEING CAPITAL CORPORATION

Series XI SUBORDINATED MEDIUM-TERM NOTE

(Floating Rate) 

	INTEREST RATE BASIS OR BASES:	 	ORIGINAL ISSUE DATE:	 	STATED MATURITY DATE:

	 	 	IF LIBOR:	 	IF CMT RATE:
	 	 	 	 	[  ]	 	LIBOR Reuters Page:	 	 	 	Designated CMT Telerate Page:

If Telerate Page 7052:
	 	 	 	 	 	 	 	 	 	 	[  ]	 	Weekly Average
	 	 	 	 	 	 	 	 	 	 	[  ]	 	Monthly Average
	

 	
 	

 	
 	

[  ]	
 	

LIBOR Telerate Page:	
 	

 	
 	

Designated CMT Maturity Index:
	

 	
 	

DESIGNATED LIBOR CURRENCY:	
 	

 	
 	

 	
 	

 

	INDEX MATURITY:	 	INITIAL INTEREST RATE: %	 	INITIAL INTEREST RESET DATE:
	

SPREAD (PLUS OR MINUS):	
 	

MINIMUM INTEREST RATE: %	
 	

INTEREST PAYMENT DATE(S):
	

SPREAD MULTIPLIER:	
 	

MAXIMUM INTEREST RATE: %	
 	

INTEREST RESET DATE(S):
	

INITIAL REDEMPTION DATE:	
 	

INITIAL REDEMPTION PERCENTAGE: %	
 	

ANNUAL REDEMPTION PERCENTAGE REDUCTION: %

 

	

OPTIONAL REPAYMENT DATE(S):	
 	

CALCULATION AGENT:

(if other than Bankers Trust Company)	
 	

 

	INTEREST CATEGORY:	 	DAY COUNT CONVENTION:
	[  ]	Regular Floating Rate Note	 	[  ]	30/360 for the period from      to     .
	[  ]	Floating Rate/Fixed Rate Note	 	 	 
	 	 	 	Fixed Rate Commencement Date:	 	[  ]	Actual/360 for the period from      to     .
	 	 	 	Fixed Interest Rate: %	 	 	 
	[  ]	Inverse Floating Rate Note	 	[  ]	Actual/Actual for the period from      to     .
	 	 	 	Fixed Interest Rate: %	 	 	 
	[  ]	Original Issue Discount Note	 	Applicable Interest Rate Basis:
	 	 	 	Issue Price: %	 	 	 

	

SPECIFIED CURRENCY:	
 	

AUTHORIZED DENOMINATIONS:	
 	

EXCHANGE RATE AGENT:
	[  ]	United States dollars	 	[  ]	$100,000 and integral multiples of $1,000 in excess thereof	 	 
	[  ]	Other:	 	[  ]	Other:	 	 
	

ADDENDUM ATTACHED	
 	

OTHER/ADDITIONAL PROVISIONS:	
 	

 
	[  ]	Yes	 	 	 	 	 
	[  ]	No	 	 	 	 	 

2

 

    Boeing Capital Corporation, a Delaware corporation (the "Company", which term includes any successor corporation under the Subordinated Indenture hereinafter referred to), for value
received, hereby promises to pay to            , or registered assigns, the principal sum of            , on the Stated Maturity
Date specified above (or any Redemption Date or Repayment
Date, each as defined on the reverse hereof) (each such Stated Maturity Date, Redemption Date and Repayment Date and any other date on which the principal or an installment of principal of this Note
shall become due and payable, whether by declaration of acceleration or otherwise, being hereinafter referred to as the "Maturity Date" with respect to the principal repayable on such date) and to pay
interest thereon, at a rate per annum equal to the Initial Interest Rate specified above until the Initial Interest Reset Date specified above and thereafter at a rate determined in accordance with
the provisions specified above and on the reverse hereof with respect to one or more Interest Rate Bases specified above until the principal hereof is paid or duly made available for payment. The
Company will pay interest in arrears on each Interest Payment Date, if any, specified above (each, an "Interest Payment Date"), commencing with the first Interest Payment Date next succeeding the
Original Issue Date specified above, and on the Maturity Date; PROVIDED, HOWEVER, that if the Original Issue Date occurs between a Record Date (as defined below) and the next succeeding Interest
Payment Date, interest payments will commence on the second Interest Payment Date next succeeding the Original Issue Date to the holder of this Note on the Record Date with respect to such second
Interest Payment Date. 

    References
herein to "this Note", "hereof", "herein" and comparable terms shall include an Addendum hereto if an Addendum is specified above. 

    Notwithstanding
anything else contained herein, if this Note is a Global Security and is held in book-entry form through the facilities of the Depositary, payments on this
Note will be made to the Depositary or its nominee in accordance with the arrangements then in effect between the Trustee and the Depositary. 

    Interest
on this Note 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 with respect to this Note) to, but excluding, the applicable Interest Payment Date or the Maturity Date, as the case may be
(each, an "Interest Period"). 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 Note (or one or more predecessor Notes) is registered at the close of business on the fifteenth calendar day (whether or not a Business Day, as defined on the reverse hereof)
immediately preceding such Interest Payment Date (the "Record Date"); PROVIDED, HOWEVER, that interest payable on the Maturity Date will be payable to the person to whom the principal hereof and
premium, if any, hereon shall be payable. Any such interest not so punctually paid or duly provided for ("Defaulted Interest") will forthwith cease to be payable to the holder on any Record Date, and
shall be paid to the person in whose name this Note is registered at the close of business on a special record date (the "Special Record Date") for the payment of such Defaulted Interest to be fixed
by the Trustee hereinafter
referred to, notice whereof shall be given to the holder of this Note by the Trustee not less than 10 calendar 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 this Note may be listed, and upon such notice as may be required by such exchange, all as more fully provided for in
the Subordinated Indenture. 

    Payment
of principal, premium, if any, and interest in respect of this Note due on the Maturity Date will be made in immediately available funds upon presentation and surrender of
this Note (and, with respect to any applicable repayment of this Note, a duly completed election form as contemplated on the reverse hereof) at the corporate trust office of the Trustee maintained for
that purpose in The Borough of Manhattan, The City of New York, currently located at Four Albany Street, New York, New York 10015, or at such other paying agency in The Borough of Manhattan, The City
of New York, 

3

 

as the Company may determine; PROVIDED, HOWEVER, that if such payment is to be made in a Specified Currency other than United States dollars as set forth below, such payment will be made by wire
transfer of immediately available funds to an account with a bank designated by the holder hereof at least 15 calendar days prior to the Maturity Date, provided that such bank has appropriate
facilities therefor and that this Note (and, if applicable, a duly completed election form) is presented and surrendered at the aforementioned office of the Trustee in time for the Trustee to make
such payment in such funds in accordance with its normal procedures. Payment of interest due on any Interest Payment Date other than the Maturity Date will be made by check mailed to the address of
the person entitled thereto as such address shall appear in the Security Register maintained at the aforementioned office of the Trustee; PROVIDED, HOWEVER, that a holder of U.S.$10,000,000 (or, if
the Specified Currency specified above is other than United States dollars, the equivalent thereof in the Specified Currency) or more in aggregate principal amount of Notes (whether having identical
or different terms and provisions) will be entitled to receive interest payments on such Interest Payment Date by wire transfer of immediately available funds if appropriate wire transfer instructions
have been received in writing by the Trustee not less than 15 calendar days prior to such Interest Payment Date. Any such wire transfer instructions received by the Trustee shall remain in effect
until revoked by such holder. 

    If
any Interest Payment Date other than the Maturity Date would otherwise be a day that is not a Business Day, such Interest Payment Date shall be postponed to the next succeeding
Business Day, except that if LIBOR is an applicable Interest Rate Basis and such Business Day falls in the next succeeding calendar month, such Interest Payment Date shall be the immediately preceding
Business Day. If the Maturity Date falls on a day that is not a Business Day, the required payment of principal, premium, if any, and interest shall be made on the next succeeding Business Day with
the same force and effect as if made on the date such payment was due, and no interest shall accrue with respect to such payment for the period from and after the Maturity Date to the date of such
payment on the next succeeding Business Day. 

    As
used herein, "Business Day" means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which commercial banks are authorized or required by law,
regulation or executive order to close in The City of New York; PROVIDED, HOWEVER, that if the Specified
Currency is other than United States dollars, such day is also not a day on which commercial banks are authorized or required by law, regulation or executive order to close in the Principal Financial
Center (as defined below) of the country issuing the Specified Currency (or, if the Specified Currency is Euro, such day is also a day on which the Trans-European Automated Real-Time Gross
Settlement Express Transfer (TARGET) System is open); PROVIDED, FURTHER, that if LIBOR is an applicable Interest Rate Basis, such day is also a London Business Day (as defined below). "London Business
Day" means a day on which commercial banks are open for business (including dealings in the Designated LIBOR Currency (as defined on the reverse hereof)) in London. "Principal Financial Center" means
(i) the capital city of the country issuing the Specified Currency or (ii) the capital city of the country to which the Designated LIBOR Currency relates, as applicable, except, in the
case of (i) or (ii), that with respect to United States dollars, Australian dollars, Canadian dollars, Deutsche marks, Dutch guilders, Portuguese escudos, South African rand and Swiss francs,
the "Principal Financial Center" shall be The City of New York, Sydney and (solely with respect to the Specified Currency) Melbourne, Toronto, Frankfurt, Amsterdam, London (solely in the case of the
Designated LIBOR Currency), Johannesburg and Zurich, respectively. 

    The
Company is obligated to make payments of principal, premium, if any, and interest in respect of this Note in the Specified Currency (or, if the Specified Currency is not at the
time of such payment legal tender for the payment of public and private debts, in such other coin or currency of the country which issued the Specified Currency as at the time of such payment is legal
tender for the payment of such debts). If the Specified Currency is other than United States dollars, any such amounts so payable 

4

 

by the Company will be converted by the Exchange Rate Agent specified above into United States dollars for payment to the holder of this Note. 

    If
the Specified Currency is other than United States dollars, the holder of this Note may elect to receive any amount payable hereunder in such Specified Currency. If the holder of
this Note shall not have duly made an election to receive all or a specified portion of any payment of principal, premium, if any, and/or interest in respect of this Note in the Specified Currency,
any United States dollar amount to be received by the holder of this Note will be based on the highest bid quotation in The City of New York received by the Exchange Rate Agent at approximately
11:00 A.M., New York City time, on the second Business Day preceding the applicable payment date from three recognized foreign exchange dealers (one of whom may be the Exchange Rate Agent)
selected by the Exchange Rate Agent and approved by the Company for the purchase by the quoting dealer of the Specified Currency for United States dollars for settlement on such payment date in the
aggregate amount of the Specified Currency payable to all holders of Notes scheduled to receive United States dollar payments and at which the applicable dealer commits to execute a contract. All
currency exchange costs will be borne by the holder of this Note by deductions from such payments. If three such bid quotations are not available, payments on this Note will be made in the Specified
Currency. 

    If
the Specified Currency is other than United States dollars, the holder of this Note may elect to receive all or a specified portion of any payment of principal, premium, if any,
and/or interest in respect of this Note in the Specified Currency by submitting a written request for such payment to the
Trustee at its corporate trust office in The City of New York on or prior to the applicable Record Date or at least 15 calendar days prior to the Maturity Date, as the case may be. Such written
request may be mailed or hand delivered or sent by cable, telex or other form of facsimile transmission. The holder of this Note may elect to receive all or a specified portion of all future payments
in the Specified Currency in respect of such principal, premium, if any, and/or interest and need not file a separate election for each payment. Such election will remain in effect until
revoked by written notice to the Trustee, but written notice of any such revocation must be received by the Trustee on or prior to the applicable Record Date or at least 15 calendar days prior to the
Maturity Date, as the case may be. 

    If
the Specified Currency is other than United States dollars or a composite currency and the holder of this Note shall have duly made an election to receive all or a specified
portion of any payment of principal, premium, if any, and/or interest in respect of this Note in the Specified Currency and if the Specified Currency is not available due to the imposition of exchange
controls or other circumstances beyond the control of the Company, the Company will be entitled to satisfy its obligations to the holder of this Note by making such payment in United States dollars on
the basis of the Market Exchange Rate (as defined below) on the second Business Day prior to such payment date or, if such Market Exchange Rate is not then available, on the basis of the most recently
available Market Exchange Rate or as otherwise specified on the face hereof. The "Market Exchange Rate" for the Specified Currency means the noon dollar buying rate in The City of New York for cable
transfers for the Specified Currency as certified for customs purposes by (or if not so certified, as otherwise determined by) the Federal Reserve Bank of New York. Any payment made under such
circumstances in United States dollars will not constitute an Event of Default (as defined in the Subordinated Indenture). 

    If
the Specified Currency is a composite currency and the holder of this Note shall have duly made an election to receive all or a specified portion of any payment of principal,
premium, if any, and/or interest in respect of this Note in the Specified Currency and if such composite currency is unavailable due to the imposition of exchange controls or other circumstances
beyond the control of the Company, then the Company will be entitled to satisfy its obligations to the holder of this Note by making such payment in United States dollars. The amount of each payment
in United States dollars shall be computed by the Exchange Rate Agent on the basis of the equivalent of the composite currency in United States dollars. The component currencies of the composite
currency for this purpose 

5

 

(collectively, the "Component Currencies" and each, a "Component Currency") shall be the currency amounts that were components of the composite currency as of the last day on which the composite
currency was used. The equivalent of the composite currency in United States dollars shall be calculated by aggregating the United States dollar equivalents of the Component Currencies. The United
States dollar equivalent of each of the Component Currencies shall be determined by the Exchange Rate Agent on the basis of the most recently available Market Exchange Rate for each such Component
Currency, or as otherwise specified on the face hereof. 

    If
the official unit of any Component Currency is altered by way of combination or subdivision, the number of units of the currency as a Component Currency shall be divided or
multiplied in the same proportion. If two or more Component Currencies are consolidated into a single currency, the amounts
of those currencies as Component Currencies shall be replaced by an amount in such single currency equal to the sum of the amounts of the consolidated Component Currencies expressed in such single
currency. If any Component Currency is divided into two or more currencies, the amount of the original Component Currency shall be replaced by the amounts of such two or more currencies, the sum of
which shall be equal to the amount of the original Component Currency. 

    The
Company agrees to indemnify the holder of any Note against any loss incurred by such holder as a result of any judgment or order being given or made against the Company for any
amount due hereunder and such judgment or order requiring payment in a currency (the "Judgment Currency") other than the Specified Currency, and as a result of any variation between (i) the
rate of exchange at which the Specified Currency amount is converted into the Judgment Currency for the purpose of such judgment or order, and (ii) the rate of exchange at which such holder, on
the date of payment of such judgment or order, is able to purchase the Specified Currency with the amount of the Judgment Currency actually received by such holder, as the case may be. The foregoing
indemnity constitutes a separate and independent obligation of the Company and continues in full force and effect notwithstanding any such judgment or order as aforesaid. The term "rate of exchange"
includes any premiums and costs of exchange payable in connection with the purchase of, or conversion into, the relevant currency. 

    All
determinations referred to above made by the Exchange Rate Agent shall be at its sole discretion and shall, in the absence of manifest error, be conclusive for all purposes and
binding on the holder of this Note. 

    Reference
is hereby made to the further provisions of this Note set forth on the reverse hereof and, if so specified above, in the Addendum hereto, which further provisions shall have
the same force and effect as if set forth on the face hereof. 

    Notwithstanding
any provisions to the contrary contained herein, if the face of this Note specifies that an Addendum is attached hereto or that "Other/Additional Provisions" apply,
this Note shall be subject to the terms set forth in such Addendum or such "Other/Additional Provisions". 

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

6

 

    IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed, manually or in facsimile, and an imprint or facsimile of its corporate seal to be imprinted hereon. 

	[SEAL]	 	BOEING CAPITAL CORPORATION
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	

	 	 	 	 	 	 	Title:
	

Attest:	
 	

 	
 	

 
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
	 	 	 	 
	 	 	Title:	 	 	 	 
	

Dated:	
 	

 	
 	

 	
 	

 
	 	 	
	 	 	 	 
	

TRUSTEE'S CERTIFICATE OF AUTHENTICATION:	
 	

 	
 	

 
	

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

 	
 	

 
	

BANKERS TRUST COMPANY,

as Trustee	
 	

 	
 	

 
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
	 	 	 	 
	 	 	Authorized Officer	 	 	 	 

7

 

[REVERSE OF NOTE]

BOEING CAPITAL CORPORATION

Series XI SUBORDINATED MEDIUM-TERM NOTE

(Floating Rate) 

    This
Note is one of a duly authorized series of Debt Securities (the "Debt Securities") of the Company issued and to be issued under a Subordinated Indenture, dated as of
August 31, 2000, and as amended, modified or supplemented from time to time (the "Subordinated Indenture"), between the Company and Bankers Trust Company, as successor Trustee (the "Trustee",
which term includes any successor trustee under the Subordinated Indenture), to which Subordinated Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the holders of the Debt Securities, and of the terms upon which the Debt Securities are, and
are to be, authenticated and delivered. This Note is one of the series of Debt Securities designated as "Series XI Subordinated Medium-Term Notes Due Nine Months or More From Date
of Issue" (the "Notes"). All terms used but not defined in this Note specified on the face hereof or in an Addendum hereto shall have the meanings assigned to such terms in the Subordinated Indenture. 

    This
Note is issuable only in registered form without coupons in denominations of U.S.$100,000 and integral multiples of $1,000 in excess thereof or the minimum Authorized
Denomination specified on the face hereof. 

    This
Note will not be subject to any sinking fund and, unless otherwise provided on the face hereof in accordance with the provisions of the following two paragraphs, will not be
redeemable or repayable prior to the Stated Maturity Date. 

    This
Note will be subject to redemption at the option of the Company on any date on and after the Initial Redemption Date, if any, specified on the face hereof, in whole or from time
to time in part in increments of U.S.$1,000 or, if the Specified Currency is other than United States dollars, the minimum Authorized Denomination specified on the face hereof (provided that any
remaining principal amount hereof shall be at least U.S.$100,000 or such minimum Authorized Denomination), at the Redemption Price (as defined below), together with unpaid interest accrued thereon to
the date fixed for redemption (each, a "Redemption Date"), on notice given no more than 60 nor less than 30 calendar days prior to the Redemption Date and in accordance with the provisions of the
Indenture. The "Redemption Price" shall initially be the Initial Redemption Percentage specified on the face hereof multiplied by the unpaid principal amount of this Note to be redeemed. The Initial
Redemption Percentage shall decline at each anniversary of the Initial Redemption Date by the Annual Redemption Percentage Reduction, if any, specified on the face hereof until the Redemption Price is
100% of unpaid principal amount to be redeemed. In the event of redemption of this Note in part only, a new Note of like tenor for the unredeemed portion hereof and otherwise having the same terms as
this Note shall be issued in the name of the holder hereof upon the presentation and surrender hereof. 

    This
Note will be subject to repayment by the Company at the option of the holder hereof on the Optional Repayment Date(s), if any, specified on the face hereof, in whole or in part
in increments of U.S.$1,000 or, if the Specified Currency is other than United States dollars, the minimum Authorized Denomination specified on the face hereof (provided that any remaining principal
amount hereof shall be at least U.S.$100,000 or such minimum Authorized Denomination), at a repayment price equal to 100% of the unpaid principal amount to be repaid, together with unpaid interest
accrued thereon to the date fixed for repayment (each, a "Repayment Date"). For this Note to be repaid, this Note must be received, together with the form hereon entitled "Option to Elect Repayment"
duly completed, by the Trustee at its corporate trust office not more than 60 nor less than 30 calendar days prior to the Repayment Date. Exercise of such repayment option by the holder hereof will be
irrevocable. In the event of repayment of this Note in part only, a new Note of like tenor for the unrepaid portion hereof 

8

 

and otherwise having the same terms as this Note shall be issued in the name of the holder hereof upon the presentation and surrender hereof. 

    If
the Interest Category of this Note is specified on the face hereof as an Original Issue Discount Note, the amount payable to the holder of this Note in the event of redemption,
repayment or acceleration of maturity of this Note will be equal to the sum of (1) the Issue Price specified on the face hereof (increased by any accruals of Discount, as defined below) and, in
the event of any redemption of this Note (if applicable), multiplied by the Initial Redemption Percentage specified in the applicable Pricing Supplement (as adjusted by the Annual Redemption
Percentage Reduction, if applicable) and (2) any accrued and unpaid interest on this Note from the Original Issue Date to the Redemption Date, Repayment Date or date of acceleration of
maturity, as the case may be. The difference between the Issue Price and 100% of the principal amount of this Note is referred to herein as the "Discount", and the Discount will be ratably accrued
over the term of this Note for purposes of determining the amount payable upon redemption, repayment or acceleration of maturity of this Note. 

    For
purposes of determining the amount of Discount that has accrued as of any Redemption Date, Repayment Date or date of acceleration of maturity of this Note, such Discount will be
accrued so as to cause an assumed yield on the Note to be constant. The assumed constant yield will be calculated using a 30-day month, 360-day year convention, a compounding
period that, except for the Initial Period (as defined below), corresponds to the shortest period between Interest Payment Dates (with ratable accruals within a compounding period), a coupon rate
equal to the initial interest rate applicable to this Note and an assumption that the maturity of this Note will not be accelerated. If the period from the Original Issue Date to the initial Interest
Payment Date (the "Initial Period") is shorter than the compounding period for this Note, a proportionate amount of the yield for an entire compounding period will be accrued. If the Initial Period is
longer than the compounding period, then such period will be divided into a regular compounding period and a short period, with the short period being treated as provided in the preceding sentence. 

    The
interest rate borne by this Note will be determined as follows: 

     (i) Unless
the Interest Category of this Note is specified on the face hereof as a "Floating Rate/Fixed Rate Note" or an "Inverse Floating Rate Note", this Note shall
be designated as a "Regular Floating Rate Note" and, except as set forth below or on the face hereof, shall bear interest at the rate determined by reference to the applicable Interest Rate Basis or
Bases (a) plus or minus the Spread, if any, and/or (b) multiplied by the Spread Multiplier, if any, in each case as specified on the face hereof. Commencing on the Initial Interest Reset
Date, the rate at which interest on this Note shall be payable shall be reset as of each Interest Reset Date specified on the face hereof; PROVIDED, HOWEVER, that the interest rate in effect for the
period, if any, from the Original Issue Date to the Initial Interest Reset Date shall be the Initial Interest Rate. 

    (ii) If
the Interest Category of this Note is specified on the face hereof as a "Floating Rate/Fixed Rate Note", then, except as set forth below or on the face hereof,
this Note shall bear interest at the rate determined by reference to the applicable Interest Rate Basis or Bases (a) plus or minus the Spread, if any, and/or (b) multiplied by the Spread
Multiplier, if any in each case specified on the face hereof. Commencing on the Initial Interest Reset Date, the rate at which interest on this Note shall be payable shall be reset as of each Interest
Reset Date; PROVIDED, HOWEVER, that (y) the interest rate in effect for the period, if any, from the Original Issue Date to the Initial Interest Reset Date shall be the Initial Interest Rate
and (z) the interest rate in effect for the period commencing on the Fixed Rate Commencement Date specified on the face hereof to the Maturity Date shall be the Fixed Interest
Rate specified on the face hereof or, if no such Fixed Interest Rate is specified, the interest rate in effect hereon on the day immediately preceding the Fixed Rate Commencement Date. 

9

 

    (iii) If the Interest Category of this Note is specified on the face hereof as an "Inverse Floating Rate Note", then, except as set forth below or on the face hereof,
this Note shall bear interest at the Fixed Interest Rate minus the rate determined by reference to the applicable Interest Rate Basis or Bases (a) plus or minus the Spread, if any, and/or
(b) multiplied by the Spread Multiplier, if any; PROVIDED, HOWEVER, that, unless otherwise specified on the face hereof, the interest rate hereon shall not be less than zero. Commencing on the
Initial Interest Reset Date, the rate at which interest on this Note shall be payable shall be reset as of each Interest Reset Date; PROVIDED, HOWEVER, that the interest rate in effect for the period,
if any, from the Original Issue Date to the Initial Interest Reset Date shall be the Initial Interest Rate. 

    Unless
otherwise specified on the face hereof, the rate with respect to each Interest Rate Basis will be determined in accordance with the applicable provisions below. Except as set
forth above or on the face hereof, the interest rate in effect on each day shall be (i) if such day is an Interest Reset Date, the interest rate determined as of the Interest Determination Date
(as hereinafter defined) 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, such Interest Reset Date shall be postponed to the next
succeeding Business Day, except that if LIBOR is an applicable Interest Rate Basis and such Business Day falls in the next succeeding calendar month, such Interest Reset Date shall be the immediately
preceding Business Day. In addition, if the Treasury Rate is an applicable Interest Rate Basis, if the Interest Determination Date would otherwise fall on an Interest Reset Date, the particular
Interest Reset Date will be postponed to the next succeeding Business Day. 

    The
interest rate applicable to each Interest Reset Period commencing on the related Interest Reset Date will be determined by the Calculation Agent as of the applicable Interest
Determination Date and will be calculated by the Calculation Agent on or prior to the Calculation Date (as defined below), except with respect to LIBOR and the Eleventh District Cost of Funds Rate,
which will be calculated on such Interest Determination Date. The "Interest Determination Date" with respect to the Federal Funds Rate, the Prime Rate and the Commercial Paper Rate will be the
Business Day immediately preceding the applicable Interest Reset Date; the "Interest Determination Date" with respect to the CD Rate and the CMT Rate will be the second Business Day immediately
preceding the applicable Interest Reset Date; the "Interest Determination Date" with respect to the Eleventh District Cost of Funds Rate shall be the last working day of the month immediately
preceding the applicable Interest Reset Date on which the Federal Home Loan Bank of San Francisco (the "FHLB of San Francisco") publishes the Index (as defined below); and the "Interest Determination
Date" with respect to LIBOR shall be the second London Business Day immediately preceding the applicable Interest Reset Date, unless the Designated LIBOR Currency is British pounds sterling, in which
case the "Interest Determination Date" will be the applicable Interest Reset Date. The "Interest Determination Date" with respect to the Treasury Rate shall be the day in the week in which the
applicable Interest Reset
Date falls on which day Treasury Bills (as defined below) are normally auctioned (Treasury Bills are normally sold at an auction held on Monday of each week, unless such Monday is a legal holiday, in
which case the auction is normally held on the immediately succeeding Tuesday, although such auction may be held on the preceding Friday); PROVIDED, HOWEVER, that if an auction is held on the Friday
of the week preceding the applicable Interest Reset Date, the "Interest Determination Date" shall be such preceding Friday. If the interest rate of this Note is determined with reference to two or
more Interest Rate Bases specified on the face hereof, the "Interest Determination Date" pertaining to this Note shall be the most recent Business Day which is at least two Business Days prior to the
applicable Interest Reset Date on which each Interest Rate Basis is determinable. Each Interest Rate Basis shall be determined as of such date, and the applicable interest rate shall take effect on
the related Interest Reset Date. 

10

 

    Unless otherwise specified on the face hereof or in an Addendum hereto, the rate with respect to each Interest Rate Basis will be determined in accordance with the applicable
provisions below. 

    CD
RATE. If an Interest Rate Basis for this Note is specified on the face hereof as the CD Rate, the CD Rate shall be determined as of the applicable Interest Determination Date (a
"CD Rate Interest Determination Date") as the rate on such date for negotiable United States dollar certificates of deposit having the Index Maturity specified on the face hereof as published in
H.15(519) (as defined below) under the heading "CDs (secondary market)", or, if not published by 3:00 P.M., New York City time, on the related Calculation Date, the rate on such CD Rate
Interest Determination Date for negotiable United States dollar certificates of deposit of the Index Maturity as published in H.15 Daily Update (as hereinafter defined), or such other recognized
electronic source used for the purpose of displaying such rate, under the caption "CDs (secondary market)". If such rate is not yet published in H.15(519), H.15 Daily Update or another recognized
electronic source by 3:00 P.M., New York City time, on the related Calculation Date, then the CD Rate on such CD Rate Interest Determination Date will be calculated by the Calculation Agent
specified on the face hereof and will be the arithmetic mean of the secondary market offered rates as of 10:00 A.M., New York City time, on such CD Rate Interest Determination Date, of three
leading nonbank dealers in negotiable United States dollar certificates of deposit in The City of New York selected by the Calculation Agent for negotiable United States dollar certificates of deposit
of major United States money center banks for negotiable United States dollar certificates of deposit with a remaining maturity closest to the Index Maturity in an amount that is representative for a
single transaction in that market at that time; PROVIDED, HOWEVER, that if the dealers so selected by the Calculation Agent are not quoting as mentioned in this sentence, the CD Rate determined as of
such CD Rate Interest Determination Date will be the CD Rate in effect on such CD Rate Interest Determination Date. 

    "H.15(519)"
means the weekly statistical release designated as such, or any successor publication, published by the Board of Governors of the Federal Reserve System. 

    "H.15
Daily Update" means the daily update of H.15(519), available through the world-wide-web site of the Board of Governors of the Federal Reserve System at
http://www.federalreserve.gov/releases/H15/update, or any successor site or publication. 

    CMT
RATE. If an Interest Rate Basis for this Note is specified on the face hereof as the CMT Rate, the CMT Rate shall be determined as
of the applicable Interest Determination Date (a "CMT Rate Interest Determination Date") as the rate displayed on the Designated CMT Telerate Page (as defined below) under the caption "...Treasury
Constant Maturities...Federal Reserve Board Release H.15...Mondays Approximately 3:45 P.M.", under the column for the Designated CMT Maturity Index (as defined below) for (i) if the
Designated CMT Telerate Page is 7051, the rate on such CMT Rate Interest Determination Date and (ii) if the Designated CMT Telerate Page is 7052, the weekly or monthly average, as specified on
the face hereof, for the week or month, as applicable, ended immediately preceding the week or month, as applicable, in which the related CMT Rate Interest Determination Date falls. If such rate is no
longer displayed on the relevant page on the related Calculation Date, then the CMT Rate for such CMT Rate Interest Determination Date will be such treasury constant maturity rate for the Designated
CMT Maturity Index as published in H.15(519). If such rate is no longer published on the related Calculation Date, then the CMT Rate on such CMT Rate Interest Determination Date will be such treasury
constant maturity rate for the Designated CMT Maturity Index (or other United States Treasury rate for the Designated CMT Maturity Index) for the CMT Rate Interest Determination Date with respect to
such Interest Reset Date as may then be published by either the Board of Governors of the Federal Reserve System or the United States Department of the Treasury that the Calculation Agent determines
to be comparable to the rate formerly displayed on the Designated CMT Telerate Page and published in H.15(519). If such information is not so provided on the related Calculation Date, then the CMT
Rate on the CMT Rate Interest Determination Date will be calculated by the Calculation Agent and will be a yield to maturity, 

11

 

based on the arithmetic mean of the secondary market offered rates as of approximately 3:30 P.M., New York City time, on such CMT Rate Interest Determination Date reported, according to their
written records, by three leading primary United States government securities dealers (each, a "Reference Dealer") in The City of New York selected by the Calculation Agent (from five such 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 the most recently issued direct noncallable fixed rate obligations of the United States ("Treasury Notes") with an original maturity of approximately the Designated CMT Maturity Index
and a remaining term to maturity of not less than such Designated CMT Maturity Index minus one year and in a principal amount that is representative for a single transaction in the securities in that
market at that time. If the Calculation Agent is unable to obtain three such Treasury Note quotations, the CMT Rate on such CMT Rate Interest Determination Date will be calculated by the Calculation
Agent and will be a yield to maturity based on the arithmetic mean of the secondary market offered rates as of approximately 3:30 P.M., New York City time, on such CMT Rate Interest
Determination Date of three Reference Dealers in The City of New York (from five such 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 Treasury Notes with an original maturity of the number of years that is the next highest
to the Designated CMT Maturity Index and a remaining term to maturity closest to the Designated CMT Maturity Index and in an amount that is representative for a single transaction in the securities in
that market. If three or four (and not five) of such Reference Dealers are quoting as described above, then the CMT Rate will be based on the
arithmetic mean of the offered rates obtained and neither the highest nor the lowest of such quotes will be eliminated; provided, however, that if fewer than three Reference Dealers selected by the
Calculation Agent are quoting as mentioned herein, the CMT Rate determined as of such CMT Rate Interest Determination Date will be the CMT Rate in effect on such CMT Rate Interest Determination Date.
If two Treasury Notes with an original maturity as described in the second preceding sentence have remaining terms to maturity equally close to the Designated CMT Maturity Index, the Calculation Agent
will obtain quotations for the Treasury Note with the shorter remaining term to maturity. 

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

    "Designated
CMT Telerate Page" means the display on Bridge Telerate, Inc. (or any successor service) on the page specified on the face hereof (or any other page as may replace
such page on such service for the purpose of displaying Treasury Constant Maturities as reported in H.15(519) or, if no such page is specified on the face hereof, page 7052. 

    COMMERCIAL
PAPER RATE. If an Interest Rate Basis for this Note is specified on the face hereof as the Commercial Paper Rate, the Commercial Paper Rate shall be determined as of the
applicable Interest Determination Date (a "Commercial Paper Rate Interest Determination Date") as the Money Market Yield (as defined below) on such date of the rate for commercial paper having the
Index Maturity as published in H.15(519) under the caption "Commercial Paper-Nonfinancial" or, if not so published by 3:00 P.M., New York City time, on the related Calculation Date, the
rate on such Commercial Paper Rate Interest Determination Date for commercial paper having the Index Maturity as published in H.15 Daily Update, or such other recognized electronic source used for the
purpose of displaying such rate, under the caption "Commercial Paper-Nonfinancial.". If such rate is not yet published in H.15(519), H.15 Daily Update or another recognized electronic source by
3:00 P.M., New York City time, on such Calculation Date, then the Commercial Paper Rate on such Commercial Paper Rate Interest Determination Date will be calculated by the Calculation Agent and
shall be the Money Market Yield of the arithmetic mean of the offered rates at approximately 11:00 A.M., New York City 

12

 

time, on such Commercial Paper Rate Interest Determination Date of three leading dealers of United States dollar commercial paper in The City of New York selected by the Calculation Agent for
commercial paper having the Index Maturity placed for industrial issuers whose bond rating is "Aa", or the equivalent, from a nationally recognized statistical rating organization; PROVIDED, HOWEVER,
that if the dealers so selected by the Calculation Agent are not quoting as mentioned in this sentence, the Commercial Paper Rate determined as of such Commercial Paper Rate Interest Determination
Date will be the Commercial Paper Rate in effect on such Commercial Paper Rate Interest Determination Date. 

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

	 	 	Money Market Yield =	 	D × 360
 360 - (D × M)	 	× 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 applicable
Interest Reset Period. 

    ELEVENTH
DISTRICT COST OF FUNDS RATE. If an Interest Rate Basis for this Note is specified on the face hereof as the Eleventh District Cost of Funds Rate, the Eleventh District Cost
of Funds Rate shall be determined as of the applicable Interest Determination Date (an "Eleventh District Cost of Funds Rate Interest Determination Date") as the rate equal to the monthly weighted
average cost of funds for the calendar month immediately preceding the month in which such Eleventh District Cost of Funds Rate Interest Determination Date falls, as set forth under the caption "11th
District" on the display on Bridge Telerate, Inc. (or any successor service) on page 7058 ("Telerate Page 7058") as of 11:00 A.M., San Francisco time, on such Eleventh District Cost of
Funds Rate Interest Determination Date. If such rate does not appear on Telerate Page 7058 on such Eleventh District Cost of Funds Rate Interest Determination Date, then the Eleventh District Cost of
Funds Rate on such Eleventh District Cost of Funds Rate Interest Determination Date shall be the monthly weighted average cost of funds paid by member institutions of the Eleventh Federal Home Loan
Bank District that was most recently announced (the "Index") by the FHLB of San Francisco as such cost of funds for the calendar month immediately preceding such Eleventh District Cost of Funds Rate
Interest Determination Date. If the FHLB of San Francisco fails to announce the Index on or prior to such Eleventh District Cost of Funds Rate Interest Determination Date for the calendar month
immediately preceding such Eleventh District Cost of Funds Rate Interest Determination Date, the Eleventh District Cost of Funds Rate determined as of such Eleventh District Cost of Funds Rate
Interest Determination Date will be the Eleventh District Cost of Funds Rate in effect on such Eleventh District Cost of Funds Rate Interest Determination Date. 

    FEDERAL
FUNDS RATE. If an Interest Rate Basis for this Note is specified on the face hereof as the Federal Funds Rate, the Federal
Funds Rate shall be determined as of the applicable Interest Determination Date (a "Federal Funds Rate Interest Determination Date") as the rate on such date for United States dollar federal funds as
published in H.15(519) under the heading "Federal Funds (Effective)", as such rate is displayed on Bridge Telerate, Inc. (or any successor service) on page 120 (or any other page as may
replace such page on such service) ("Telerate Page 120"), or, if such rate does not appear on Telerate page 120 or is not so published by 3:00 P.M., New York City time, on the Calculation Date,
the rate on such Federal Funds Rate 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 such rate, under the caption "Federal Funds (Effective)." If such rate
does not appear on Telerate Page 120 or is not yet published in H.15(519), H.15 Daily Update or another recognized electronic source by 3:00 P.M., New York City time, on the related Calculation
Date, then the Federal Funds Rate on such Federal Funds Interest Determination Date shall be 

13

 

calculated by the Calculation Agent and will be 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 selected by the Calculation Agent, prior to 9:00 A.M., New York City time, on such Federal Funds Rate Interest Determination
Date; PROVIDED, HOWEVER, that if the brokers so selected by the Calculation Agent are not quoting as mentioned in this sentence, the Federal Funds Rate determined as of such Federal Funds Rate
Interest Determination Date will be the Federal Funds Rate in effect on such Federal Funds Rate Interest Determination Date. 

    LIBOR. If an Interest Rate Basis for this Note is specified on the face hereof as LIBOR, LIBOR shall be determined by the Calculation
Agent as of the applicable Interest Determination Date (a "LIBOR Interest Determination Date") in accordance with the following provisions: 

     (i) (a)
if "LIBOR Telerate" is specified on the face hereof or if neither "LIBOR Reuters" nor "LIBOR Telerate" is specified on the face hereof as the method for
calculating LIBOR, the rate for deposits in the Designated LIBOR Currency having the Index Maturity specified in such Pricing Supplement, commencing on such Interest Reset Date, that appears on the
Designated LIBOR Page (as defined below) as of 11:00 A.M., London time, on such LIBOR Interest Determination Date; or (b) if "LIBOR Reuters" is specified on the face hereof, the
arithmetic mean of the offered rates (unless the Designated LIBOR Page (as defined below) by its terms provides only for a single rate, in which case such single rate will be used) for deposits in the
Designated LIBOR Currency having the Index Maturity, commencing on the applicable Interest Reset Date, that appear (or, if only a single rate is required as aforesaid, appears) on the Designated LIBOR
Page as of 11:00 A.M., London time, on such LIBOR Interest Determination Date. If fewer than two such offered rates so appear, or if no such rate so appears, as applicable, LIBOR on such LIBOR
Interest Determination Date shall be determined in accordance with the provisions described in clause (ii) below. 

    (ii) With
respect to a LIBOR Interest Determination Date on which fewer than two offered rates appear, or no rate appears, as the case may be, on the Designated LIBOR
Page as specified in clause (i) above, the Calculation Agent shall request the principal London offices of each of four major reference banks in the London interbank market, as selected by the
Calculation Agent, to provide the Calculation Agent with its offered quotation for deposits in the Designated LIBOR Currency for the period of the Index Maturity, commencing on the applicable Interest
Reset Date, to prime banks in the London interbank market at approximately 11:00 A.M., London time, on such LIBOR Interest Determination Date and in a principal amount that is representative
for a single transaction in the Designated LIBOR Currency in such market at such time. If at least two such quotations are so provided, then LIBOR on such LIBOR Interest Determination Date will be the
arithmetic mean of such quotations. If fewer than two such quotations are so provided, then LIBOR on such LIBOR Interest Determination Date will be the arithmetic mean of the rates quoted at
approximately
11:00 A.M., in the applicable Principal Financial Center, on such LIBOR Interest Determination Date by three major banks in such Principal Financial Center selected by the Calculation Agent for
loans in the Designated LIBOR Currency to leading European banks, having the Index Maturity and in a principal amount that is representative for a single transaction in the Designated LIBOR Currency
in such market at such time; PROVIDED, HOWEVER, that if the banks so selected by the Calculation Agent are not quoting as mentioned in this sentence, LIBOR determined as of such LIBOR Interest
Determination Date shall be LIBOR in effect on such LIBOR Interest Determination Date. 

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

14

 

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

    PRIME
RATE. If an Interest Rate Basis for this Note is specified on the face hereto as the Prime Rate, the Prime Rate shall be determined as of the applicable Interest Determination
Date (a "Prime Rate Interest Determination Date") as the rate on such date as such rate is published in H.15(519) under the caption "Bank Prime Loan" or, if not published by 3:00 P.M.,
New York City time, on the related Calculation Date, the rate on such Prime Rate Interest Determination Date as published in H.15 Daily Update, or such other recognized electronic source used for the
purpose of displaying such rate, under the caption "Bank Prime Loan." If such rate is not yet published in H.15(519), H.15 Daily Update or another recognized electronic source by 3:00 P.M., New
York City time, on the related Calculation Date, the Prime Rate shall be the arithmetic mean of the rates of interest publicly announced by each bank that appears on the Reuters Screen US PRIME 1 Page
(as defined below) as such bank's prime rate or base lending rate as of 11:00 A.M., New York City time, on such Prime Rate Interest Determination. If fewer than four such rates so appear on the
Reuters Screen US PRIME 1 Page for such Prime Rate Interest Determination Date, then the Prime Rate shall be the arithmetic mean of the prime rates or base lending 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 such Prime Rate Interest Determination Date by three major banks in The City of New York selected by the
Calculation Agent; PROVIDED, HOWEVER, that if the banks or trust companies so selected by the Calculation Agent are not quoting as mentioned in this sentence, the Prime Rate determined as of such
Prime Rate Interest Determination Date will be the Prime Rate in effect on such Prime Rate Interest Determination Date. 

    "Reuters
Screen US PRIME 1 Page" means the display on the Reuter Monitor Money Rates Service (or any successor service) on the "US PRIME 1" Page (or such other page as may replace the
US PRIME 1 Page on such service) for the purpose of displaying prime rates or base lending rates of major United States banks. 

    TREASURY
RATE. If an Interest Rate Basis for this Note is specified on the face hereof as the Treasury Rate, the Treasury Rate shall be determined as of the applicable Interest
Determination Date (a "Treasury Rate Interest Determination Date") as the rate from the auction held on such Treasury Rate Interest Determination Date (the "Auction") of direct obligations of the
United States ("Treasury Bills") having the Index Maturity 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 such page on such service) ("Telerate Page 56") or page 57 (or any other page as may replace such page on such service) ("Telerate Page 57") or, if 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 such Treasury Bills as published in H.15 Daily Update, or such other recognized
electronic source used for the purpose of displaying such rate, under the caption "U.S. Government Securities/Treasury Bills/Auction High" or, if 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 such Treasury Bills as announced by the United States Department of the Treasury. In the event that the auction
rate of Treasury Bills having the Index Maturity is not so announced by the United States Department of the Treasury, or if no such Auction is held, then the Treasury Rate will be the Bond Equivalent
Yield of the rate on such Treasury Rate Interest Determination Date of Treasury Bills having the Index Maturity published in H.15(519) under 

15

 

the caption "U.S. Government Securities/Treasury Bills/Secondary Market" or, if not yet published by 3:00 P.M., New York City time, on the related Calculation Date, the rate on such Treasury
Rate Interest Determination Date of such Treasury Bills as published in H.15 Daily Update, or such other recognized electronic source used for the purpose of displaying such rate, under the caption
"U.S. Government Securities/Treasury Bills/Secondary Market." If such rate is not yet published in H.15(519), H.15 Daily Update or another recognized electronic source, then the Treasury Rate will be
calculated by the Calculation Agent and will be 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 such
Treasury Rate Interest Determination Date, of three primary United States government securities dealers (which may include the Agents or their affiliates) selected by the Calculation Agent, for the
issue of Treasury Bills with a remaining maturity closest to the Index Maturity; PROVIDED, HOWEVER, that if the dealers so selected by the Calculation Agent are not quoting as mentioned in this
sentence, the Treasury Rate determined as of such Treasury Rate Interest Determination Date will be the Treasury Rate in effect on such Treasury Rate Interest Determination Date. 

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

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

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

    Notwithstanding
the foregoing, the interest rate hereon shall not be greater than the Maximum Interest Rate, if any, or less than the Minimum Interest Rate, if any, in each case as
specified on the face hereof. The interest rate on this Note will in no event be higher than the maximum rate permitted by New York law, as the same may be modified by United States law of general
application. 

    The
Calculation Agent shall calculate the interest rate hereon on or before each Calculation Date. The "Calculation Date", if applicable, pertaining to any Interest Determination Date
shall 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 the Maturity Date, as the case may be. At the request of the holder hereof, the Calculation Agent will provide to the holder hereof the
interest rate hereon then in effect and, if determined, the interest rate that will become effective as a result of a determination made for the next succeeding Interest Reset Date. 

    Accrued
interest hereon shall be an amount calculated by multiplying the principal amount hereof by an accrued interest factor. Such accrued interest factor shall be computed by
adding the interest factor calculated for each day in the applicable Interest Period. Unless otherwise specified as the Day Count Convention on the face hereof, the interest factor for each such date
shall be computed by dividing the interest rate applicable to such day by 360 if the CD Rate, the Commercial Paper Rate, the Eleventh District Cost of Funds Rate, the Federal Funds Rate, LIBOR or the
Prime Rate is an applicable Interest Rate Basis or by the actual number of days in the year if the CMT Rate or the Treasury Rate is an applicable Interest Rate Basis. Unless otherwise specified as the
Day Count Convention on the face hereof, the interest factor for this Note, if the interest rate is calculated with reference to two or more Interest Rate Bases, shall be calculated in each period in
the same manner as if only the Applicable Interest Rate Basis specified on the face hereof applied. 

    All
percentages resulting from any calculation on this Note shall be rounded to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a
percentage point rounded upwards, and all amounts used in or resulting from such calculation on this Note shall be rounded, in 

16

 

the case of United States dollars, to the nearest cent or, in the case of a Specified Currency other than United States dollars, to the nearest unit (with one-half cent or unit being
rounded upwards). 

    Subordinated
Indebtedness evidenced by this Note is subordinate and junior in right of payment to the prior payment in full of all Senior Indebtedness (defined below) of the Company
and each holder of this Note by accepting the same agrees to and shall be bound by the provisions hereof, and authorizes the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate the same and appoints the Trustee as his attorney-in-fact for such purpose. 

    For
all purposes herein, the term "Senior Indebtedness" shall mean all of the indebtedness of, or guaranteed by, the Company for borrowed money (including the principal of, premium,
if any, or interest on any such borrowed money and any commitment fees for unborrowed amounts which, if borrowed, would constitute Senior Indebtedness), whether currently outstanding or hereafter
incurred, unless, under the instrument evidencing the same or under which the same is outstanding, it is expressly provided that such indebtedness is subordinate to other indebtedness and obligations
of the Company. 

    In
the event that the Company shall default in the payment of any Senior Indebtedness, when the same becomes due and payable, whether at maturity or on a date fixed for prepayment or
by declaration or otherwise, then, unless and until such default shall have been cured or waived or shall have ceased to exist, no direct or indirect payment (in cash, property, or securities or by
set-off or otherwise) shall be made or agreed to be made on account of the principal of, premium, if any, or interest or any Additional Amounts on this Note, or in respect of any sinking
fund for, or redemption, retirement or purchase or other acquisition of this Note. 

    Upon
the happening of an event of default with respect to any Senior Indebtedness permitting the holders thereof to accelerate the maturity thereof (other than under the circumstances
when the terms of the immediately preceding paragraph are applicable), then, unless and until such event of default shall have been cured or waived or shall have ceased to exist, no direct or indirect
payment (in cash, property, or securities or by set-off or otherwise) shall be made or agreed to be made on account of the principal of, or premium, if any, or interest or any Additional
Amounts on this Note or in respect of any sinking fund for, or redemption, retirement or purchase or other acquisition of this Note during any period (i) of 90 days after written notice
of such default shall have been given to the Company by any holder of Senior Indebtedness or (ii) in which any judicial proceeding shall be pending in respect of such default and a notice of
acceleration of the maturity of such Senior Indebtedness shall have been transmitted to the Company in respect of such default. 

    In
the event of (i) any insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment, composition or other similar proceeding relating to the Company, its
creditors or its property; (ii) any proceeding for the liquidation, dissolution or other winding-up of the Company, voluntary or
involuntary, whether or not involving insolvency or bankruptcy proceedings; (iii) any assignment by the Company for the benefit of creditors; or (iv) any other marshalling of the assets
of the Company, all Senior Indebtedness (including any interest accruing after commencement of any such proceedings) shall first be paid in full before any payment or distribution, whether in cash,
securities or other property, shall be made to any Holder of this Note on account of this Note. Any payment or distribution, whether in cash, securities or other property (other than securities of the
Company or any other corporation provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least to the extent provided herein with respect to this Note, to the
payment of all Senior Indebtedness at the time Outstanding and to any securities issued in respect thereof under any such plan of reorganization or readjustment), which would otherwise but for the
foregoing be payable or deliverable in respect of this Note shall be paid or delivered directly to the holders of Senior Indebtedness in accordance with the priorities then existing among such holders
until all Senior 

17

 

Indebtedness (including any interest thereon accruing after the commencement of any such proceedings) shall have been paid in full. 

    In
the event that this Note shall be declared due and payable as a result of the occurrence of any one or more defaults in respect thereof (under circumstances when the terms of the
immediately preceding paragraph are not applicable), no payment shall be made in respect of this Note unless and until all Senior Indebtedness shall have been paid in full or such declaration and its
consequences shall have been rescinded and all such defaults shall have been remedied or waived. 

    If
any payment or distribution to be paid to the holders of Senior Indebtedness shall be received by any holder of this Note in contravention of the foregoing and before all the
Senior Indebtedness shall have been paid in full, such payment or distribution of any character or any security whether in cash, securities or other property (other than securities of the Company or
any other corporation provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least to the extent provided in the provisions of the Subordinated Indenture with
respect to the Subordinated Securities, to the payment of all Senior Indebtedness at the time outstanding and to any securities issued in respect thereof under any such plan or reorganization or
readjustment), shall be received in trust for the benefit of, and shall be paid over or delivered and transferred to, the holders of Senior Indebtedness at the time Outstanding in accordance with the
priorities then existing among such holders for application to the payment of all Senior Indebtedness remaining unpaid, to the extent necessary to pay all such Senior Indebtedness in full. In the
event of the failure of the holder of this Note to endorse or assign any such payment, distribution or security, each holder of Senior Indebtedness is hereby irrevocably authorized to endorse or
assign the same. Nothing contained herein shall impair, as between the Company and the holder of this Note, the obligation of the Company to pay to the holder thereof the principal thereof and
interest thereon as and when the same shall become due and payable in accordance with the terms of this Note, or prevent the Holder of this Note from exercising all rights, powers and remedies
otherwise permitted by applicable law or pursuant to the terms of this Note or the Subordinated Indenture upon a default or Event of Default under the Subordinated Indenture, all subject to the rights
of the holders of Senior Indebtedness to receive cash, securities or other property otherwise payable or deliverable to the Holder of this Note. Senior Indebtedness shall not be deemed to have been
paid in full unless the holders thereof shall have received cash equal to the amount of such Senior Indebtedness then Outstanding. Upon the payment in
full of all Senior Indebtedness, the holder of this Note shall be subrogated to all rights of any holders of Senior Indebtedness to receive any further payments or distributions applicable to the
Senior Indebtedness until all amounts owing on this Note shall have been paid in full, and such payments or distributions received by the holder of this Note by reason of such subrogation, of cash,
securities or other property which otherwise would be paid or distributed to the holders of Senior Indebtedness, shall, as between the Company and its creditors other than the holders of Senior
Indebtedness, on the one hand, and the Holder of this Note, on the other hand, be deemed to be a payment by the Company on account of Senior Indebtedness and not on account of this Note. 

    If
an Event of Default shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with all the effect provided in the Subordinated
Indenture. 

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

    The
Subordinated Indenture contains provisions for defeasance of the entire indebtedness of the Notes upon compliance with certain conditions set forth therein, which provisions apply
to the Notes. 

    The
Subordinated 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 

18

 

of the Debt Securities at any time by the Company and the Trustee with the consent of the holders of not less than 66% in principal amount of the Outstanding Debt Securities of each series affected
thereby. The Subordinated Indenture also contains provisions permitting the holders of at least 66% in principal amount of the Outstanding Debt Securities of any series, on behalf of the holders of
all such Debt Securities of such series, to waive compliance by the Company with certain provisions of the Subordinated Indenture. Furthermore, provisions in the Subordinated Indenture permit the
holders of not less than a majority in principal amount of the Outstanding Debt Securities of any series, in certain instances, to waive, on behalf of all of the holders of Debt Securities of such
series, certain past defaults under the Subordinated Indenture and their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon
all future holders of this Note and other Notes issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon
this Note. 

    No
reference herein to the Subordinated Indenture and no provision of this Note or of the Subordinated 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 Note at the times, places and rate or formula, and in the coin or currency, herein prescribed. 

    As
provided in the Subordinated Indenture and subject to certain limitations therein and herein set forth, the transfer of this Note is registrable in the Security Register of the
Company upon surrender of this Note for registration of transfer at the office or agency of the Company in any place where the principal hereof and any premium or interest hereon are payable, 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 Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

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

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

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

    THE
SUBORDINATED INDENTURE AND THIS NOTE 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. 

19

 

ABBREVIATIONS 

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

	UNIF GIFT MIN ACT—	 	 	 	Custodian	 	 
	 	 	
 (Cust)	 	 	 	
 (Minor)
	under Uniform Gifts to Minors Act	 	 	 	 	 	 
	 	 	
 (State)	 	 	 	 

TEN
COM—as tenants in common 

TEN
ENT—as tenants by the entireties 

JT
TEN—as joint tenants with right of survivorship and not as tenants in common 

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

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

PLEASE
INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 

	
(Please print or typewrite name and address including postal zip code of assignee)

this
Note and all rights thereunder hereby irrevocably constituting and appointing 

____________________________________
Attorney to transfer this Note 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 Note in every particular, without alteration or enlargement or any change whatsoever. 

20

 

OPTION
TO ELECT REPAYMENT 

    The
undersigned hereby irrevocably request(s) and instruct(s) the Company to repay this Note (or portion hereof specified below) pursuant to its terms at a price equal to 100% of the
principal amount to be repaid, together with unpaid interest accrued hereon to the Repayment Date, to the undersigned, at 

	
	 	 
	

	
 	

 
	

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

 

    For
this Note to be repaid, the Trustee must receive at its corporate trust office, currently located at            , not more than 60 nor less than 30 calendar days prior to
the Repayment Date, this Note with this "Option to Elect Repayment" form duly completed. 

    If
less than the entire principal amount of this Note is to be repaid, specify the portion hereof (which shall be increments of U.S. $1,000 (or, if the Specified Currency is other
than United States dollars, the minimum Authorized Denomination specified on the face hereof)) which the holder elects to have repaid and specify the denomination or denominations (each of which shall
be an Authorized Denomination) of the Notes to be issued to the holder for the portion of this Note not being repaid (in the absence of any such specification, one such Note will be issued for the
portion not being repaid). 

Principal
Amount to be Repaid: 

	Date:	 	 	 	 
	 	 	
	 	Notice: The signature(s) on this Option to Elect Repayment must correspond with the name(s) as written upon the face of this Note in every particular, without alteration or enlargement or any change
whatsoever.

21

QuickLinks

Exhibit 4.4<PAGE>

                                                                     EXHIBIT 4.1

                                     FORM OF

                           CERTIFICATE OF DESIGNATIONS

                                       of

                 SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK

                                       of

                               USA NETWORKS, INC.

                         (Pursuant to Section 151 of the
                        Delaware General Corporation Law)

                                 _________________

                  USA Networks, Inc., a corporation organized and existing under
the General Corporation Law of the State of Delaware (hereinafter called the
"Corporation"), hereby certifies that the following resolution was adopted by
the unanimous consent of the Board of Directors of the Corporation as required
by Section 151 of the General Corporation Law on ________________, 2001.

                  RESOLVED, that pursuant to the authority granted to and vested
in the Board of Directors of this Corporation in accordance with the provisions
of the Amended Certificate of Incorporation of the Corporation, a series of
Convertible Preferred Stock, par value $.01 per share, of the Corporation, be
and hereby is created, and that the number of shares thereof and the voting
powers, designations, preferences, limitations, restrictions, relative rights
and distinguishing designation of the shares of such series are as follows:

                  SECTION 1. DESIGNATION AND AMOUNT. The designation of such
series of Preferred Stock authorized by this resolution shall be the Series A
Cumulative Convertible Preferred Stock (the "CONVERTIBLE PREFERRED STOCK"). The
number of shares of Convertible Preferred Stock shall be 13,125,000. The face
value of the Convertible Preferred Stock shall be $50.00 (the "FACE VALUE").

                  SECTION 2. RANK AND TERM. All shares of Convertible Preferred
Stock shall rank prior, both as to payment of dividends and as to distributions
of assets upon liquidation, dissolution or winding up of the Corporation,
whether voluntary or involuntary, to all of the now or hereafter issued classes
of common stock, $0.01 par value per share, of the Corporation (the "COMMON
STOCK"). No other preferred stock of the Corporation shall rank senior to the
Convertible Preferred Stock with respect to payment upon liquidation or payment
of dividends without the consent of the holders of record of the Convertible
Preferred Stock (the "Holders") representing a majority of the Convertible
Preferred Stock then outstanding. At the close of business on        , 2021 (the
"EXPIRATION DATE"), without any further action on the part of the Corporation or
any

                                       1
<PAGE>

Holder, but subject to payment of all accrued and unpaid dividends on the
Convertible Preferred Stock, all then outstanding shares of Convertible
Preferred Stock shall automatically be converted to common stock in conformance
with the provisions of Section 6 and no shares of Convertible Preferred Stock
shall thereafter be issued or outstanding.

                  SECTION 3. DIVIDENDS. The Holders shall be entitled to
receive, whether or not dividends are declared by the Board out of funds at the
time legally available therefor, annual dividends in the amount of (a) 1.99% of
the Face Value per annum per share of Convertible Preferred Stock, plus (b) the
excess, if any, of the value of any dividends paid with respect to the number of
shares of Common Stock into which each outstanding share of the Convertible
Preferred Stock is then convertible over the amount described in clause (a), and
no more. Dividends on the Convertible Preferred Stock shall be fully cumulative,
shall accrue without interest from the date of first issuance, and shall be
payable quarterly in arrears on February 15, May 15, August 15 and November 15
(each, a "DIVIDEND DATE") of each year (except that if any such date is a
Saturday, Sunday or Legal Holiday, then such dividend shall be payable on the
next succeeding day that is not a Saturday, Sunday or Legal Holiday) to holders
of record as they appear on the stock transfer books of the Corporation on the
close of business on the fifth Business Day prior to such Dividend Date. All
dividends on the Convertible Preferred Stock are payable, at the Corporation's
option, in cash, shares of Common Stock or any combination thereof, with the
Common Stock valued at the Market Price (as defined below) as of the applicable
Dividend Date. For purposes hereof, the term "LEGAL HOLIDAY" shall mean any day
on which banking institutions are authorized to close in New York, New York.
Dividends on account of arrears for any past dividend period may be declared and
paid at any time, without reference to any regular dividend payment date. The
amount of dividends payable per share of Convertible Preferred Stock with
respect to the amounts determined pursuant to clause (a) of this paragraph for
each quarterly dividend period shall be computed by dividing the annual amount
determined pursuant to such clause (a) by four. The amount of dividends payable
for the initial dividend period and any period shorter than a full quarterly
dividend period shall be computed on the basis of the number of days actually
elapsed of a 360-day year, provided that in no event shall the dividend amount
for any period shorter than a full quarterly dividend period be greater than the
full quarterly dividend amount.

                  If the Corporation elects to pay all or any portion of a
dividend in shares of Common Stock, the number of shares of Common Stock to be
delivered by the Corporation for each share of Convertible Preferred Stock held
by a Holder shall equal (x) the cash value of the dividend (or portion of a
dividend) to be paid with Common Stock divided by (y) the Market Price. The
"MARKET PRICE" shall be equal to the average of the daily Closing Prices (as
defined below) of the Common Stock for the 10 consecutive Trading Days (as
defined below) ending on the second Trading Day immediately preceding the
applicable Dividend Date (or other date with respect to which the Market Price
is to be determined). The "CLOSING PRICE" for each Trading Day shall be the last
reported sales price regular way, during regular trading hours, or, in case no
such reported sales takes place on such day, the average of the closing bid and
asked prices regular way, during regular trading hours, for such day, in each
case on The Nasdaq Stock Market or, if not listed or quoted on such market, on
the principal national securities exchange on

                                       2
<PAGE>

which the shares of Common Stock are listed or admitted to trading or, if not
listed or admitted to trading on a national securities exchange, the last sale
price regular way for the Common Stock as published by the National Association
of Securities Dealers Automated Quotation System ("NASDAQ"), or if such last
sale price is not so published by NASDAQ or if no such sale takes place on such
day, the mean between the closing bid and asked prices for the Common Stock as
published by NASDAQ. If the shares of Common Stock are not listed or admitted to
trading on a national securities exchange or quoted by NASDAQ, the Market Price
shall be determined in good faith by the Board of Directors of the Corporation
or, if such determination cannot be made, by a nationally recognized independent
investment banking firm selected in good faith by the Board of Directors of the
Corporation. "TRADING DAY" shall mean a day on which the securities exchange
utilized for the purpose of calculating the Market Price shall be open for
business or, if the shares of Common Stock shall not be listed on such exchange
for such period, a day with respect to which quotations of the character
referred to in the next preceding sentence shall be reported. In lieu of any
fractional share of Common Stock which would otherwise be issued in payment for
a dividend on Convertible Preferred Stock, the Corporation shall pay a cash
adjustment in respect of such fractional interest in an amount in cash (computed
to the nearest cent) equal to the Market Price multiplied by the fractional
interest that otherwise would have been deliverable as a dividend on such
Convertible Preferred Stock.

                  On each Dividend Date all dividends which shall have accrued
on each share of Convertible Preferred Stock outstanding on such Dividend Date
shall accumulate and be deemed to become "due" whether or not there shall be
funds legally available for the payment thereof. Any dividend which shall not be
paid on the Dividend Date on which it shall become due shall be deemed to be
"past due" until such dividend shall be paid or until the share of Convertible
Preferred Stock with respect to which such dividend became due shall no longer
be outstanding, whichever is the earlier to occur. No interest, sum of money in
lieu of interest, or other property or securities shall be payable in respect of
any dividend payment or payments which are past due. Dividends paid on shares of
Convertible Preferred Stock in an amount less than the total amount of such
dividends at the time accumulated and payable on such shares shall be allocated
PRO RATA on a share-by-share basis among all such shares at the time
outstanding.

                  No dividends shall be paid or declared and set apart for
payment on the Corporation's Common Stock or on any class or series of the
Corporation's capital stock ranking, as to dividends, on a parity with the
Convertible Preferred Stock (the "PARITY DIVIDEND STOCK") for any period unless
full cumulative dividends have been, or contemporaneously are, paid or declared
and set apart for such payment on the Convertible Preferred Stock for all
dividend payment periods terminating on or prior to the date of payment of such
full cumulative dividends. No dividends shall be paid or declared and set apart
for payment on the Convertible Preferred Stock for any period unless cumulative
dividends have been, or contemporaneously are, paid or declared and set apart
for payment on the Parity Dividend Stock for all dividend periods terminating on
or prior to the date of payment of such full cumulative dividends. When
dividends are not paid in full upon the Convertible Preferred Stock and the

                                       3
<PAGE>

Parity Dividend Stock, all dividends paid or declared and set aside for payment
upon shares of Convertible Preferred Stock and the Parity Dividend Stock shall
be paid or declared and set aside for payment PRO RATA so that the amount of
dividends paid or declared and set aside for payment per share on the
Convertible Preferred Stock and the Parity Dividend Stock shall in all cases
bear to each other the same ratio that accrued and unpaid dividends per share on
the shares of Convertible Preferred Stock and the Parity Dividend Stock bear to
each other.

                  SECTION 4. LIQUIDATION PREFERENCE. In the event of any
liquidation, dissolution or winding up of the Corporation, whether voluntary or
involuntary, the Holders shall be entitled to receive out of the assets of the
Corporation, whether such assets are stated capital or surplus of any nature, an
amount equal to the dividends accrued and unpaid thereon to the date of final
distribution to such Holders, whether or not declared, without interest, plus a
sum per share of Convertible Preferred Stock equal to the greater of (a) $50.00
and (b) the liquidating distribution that would be paid with respect to the
number of shares of Common Stock into which a share of Convertible Preferred
Stock is then convertible, and no more. Such final distribution on the shares of
the Convertible Preferred Stock shall be made before any payment is made or
assets are distributed to the holders of Common Stock or any other class or
series of the Corporation's capital stock ranking junior as to liquidation
rights to the Convertible Preferred Stock (the "JUNIOR LIQUIDATION STOCK"). In
the event the assets of the Corporation available for distribution to
stockholders upon any liquidation, dissolution or winding up of the Corporation,
whether voluntary or involuntary, shall be insufficient to pay in full the
amounts payable with respect to the Convertible Preferred Stock and any other
class or series of the Corporation's capital stock which may hereafter be
created having parity as to liquidation rights with the Convertible Preferred
Stock (the "PARITY LIQUIDATION STOCK"), the Holders and the holders of the
Parity Liquidation Stock shall share ratably in any distribution of assets of
the Corporation in proportion to the full respective preferential amounts to
which they are entitled (but only to the extent of such preferential amounts).
After payment in full of the liquidation preferences of the shares of
Convertible Preferred Stock, the Holders shall not be entitled to any further
participation in any distribution of assets by the Corporation by virtue of
their ownership of the Convertible Preferred Stock. Except as set forth in
Section 6(i), neither a consolidation, merger or other business combination of
the Corporation with or into another corporation or other entity nor a sale or
transfer of all or part of the Corporation's assets for cash, securities or
other property or any combination thereof shall be considered a liquidation,
dissolution or winding up of the Corporation for purposes of this Section 4
(unless in connection therewith the liquidation of the Corporation is
specifically approved).

                  A Holder shall not be entitled to receive any payment owed for
such shares under this Section 4 until such Holder shall cause to be delivered
to the Corporation (i) the certificate(s) representing such shares of
Convertible Preferred Stock (or, in the event such certificate(s) have been lost
or destroyed, an affidavit of the Holder of loss or destruction reasonably
satisfactory to the Corporation as well as other support as reasonably requested
by the Corporation) and (ii) transfer instrument(s) reasonably satisfactory to
the Corporation and sufficient to transfer such shares of Convertible Preferred
Stock to the Corporation free of any adverse interest. No interest shall accrue
on any payment upon liquidation after the due date thereof.

                                       4
<PAGE>

                  SECTION 5. REDEMPTION. (a) REDEMPTION AT THE OPTION OF THE
CORPORATION. Commencing on the tenth anniversary of the Effective Time (for the
purposes hereof, the "EFFECTIVE TIME" shall be ___________), the Corporation, at
its option, may from time to time redeem all or a portion of (but if a portion,
shares representing at least 25% of the originally issued aggregate Face Value,
unless there shall remain outstanding less than 25% of such amount, in which
case all outstanding shares may be redeemed) of the outstanding Convertible
Preferred Stock at a redemption price equal to the Face Value plus all dividends
on the Convertible Preferred Stock being redeemed that are accrued and unpaid
thereon, whether or not declared or due, to the date fixed for redemption (the
"REDEMPTION DATE"), such sum being hereinafter referred to as the "REDEMPTION
PRICE". The Redemption Price may be paid in cash, shares of Common Stock or a
combination thereof, at the option of the Corporation.

                  If the Corporation elects to pay the Redemption Price in
Common Stock, the number of shares of Common Stock to be paid per share of
Convertible Preferred Stock being redeemed shall equal (x) the then-current
Redemption Price of the Convertible Preferred Stock (or portion thereof to be
paid in shares of Common Stock), divided by (y) the Market Price as of the date
of the notice for redemption described below.

                  In case of the redemption pursuant to this Section 5(a) of
less than all of the then outstanding Convertible Preferred Stock, the shares of
Convertible Preferred Stock to be redeemed shall be redeemed PRO RATA or by lot
or in such other manner as the Board of Directors may determine.

                  Not more than 60 nor less than 20 days prior to the Redemption
Date, notice by first class mail, postage prepaid, shall be given to each Holder
of Convertible Preferred Stock to be redeemed, at such Holder's address as it
shall appear upon the stock transfer books of the Corporation. Each such notice
of redemption shall specify the Redemption Date, the Redemption Price, the place
or places of payment, that payment will be made upon presentation and surrender
of the certificate(s) evidencing the shares of Convertible Preferred Stock to be
redeemed, that on and after the Redemption Date, dividends will cease to accrue
on such shares of Convertible Preferred Stock to be redeemed, the then effective
conversion price pursuant to Section 6 and that the right of holders to convert
such shares of Convertible Preferred Stock to be redeemed shall terminate at the
close of business on the Redemption Date (unless the Corporation defaults in the
payment of the Redemption Price).

                  Any notice that is mailed as provided in Section 13 shall be
conclusively presumed to have been duly given, whether or not the Holder
receives such notice; and failure to give such notice by mail, or any defect in
such notice, to the Holders of any shares designated for redemption shall not
affect the validity of the proceedings for the redemption of any other shares of
Convertible Preferred Stock. On or after the Redemption Date as stated in such
notice, each Holder of the shares called for redemption shall surrender the
certificate evidencing such shares to the Corporation at the place designated in
such notice and shall thereupon be entitled to receive payment of the Redemption
Price as herein provided. If less than all the shares represented by any such
surrendered certificate are redeemed, a new certificate shall be issued
representing the unredeemed shares. If, on the Redemption Date, shares of Common
Stock and/or funds, as the case may be,

                                       5
<PAGE>

necessary for the redemption shall be available therefor and shall have been
irrecoverably deposited or set aside, then, notwithstanding that the
certificates evidencing any shares so called for redemption shall not have been
surrendered the dividends with respect to the shares so called shall cease to
accrue after the Redemption Date, the shares shall no longer be deemed
outstanding, the Holders thereof shall cease to be Holders, and all rights
whatsoever with respect to the shares so called for redemption (except the right
of the Holders to receive payment of the Redemption Price as herein provided
without interest upon surrender of their certificates therefor) shall terminate.
At the close of business on the Redemption Date, each Holder of Convertible
Preferred Stock so redeemed (unless the Corporation defaults on its obligations
to deliver shares of Common Stock or cash) shall be, without any further action,
to the extent the Corporation elected to pay the Redemption Price in shares of
Common Stock, deemed a holder of the number of shares, if any, of Common Stock
for which such Convertible Preferred Stock is redeemable, and, to the extent the
Corporation elected to pay the Redemption Price in cash, entitled to receive
payment of the Redemption Price in cash, without interest.

                  The shares of Convertible Preferred Stock shall not be subject
to the operation of any purchase, retirement, mandatory redemption (except as
specified in this Section) or sinking fund.

                  The Holder of any shares of Convertible Preferred Stock
redeemed upon any exercise of the Corporation's redemption right shall not be
entitled to receive payment of the Redemption Price for such shares until such
Holder shall cause to be delivered to the place specified in the notice given
with respect to such redemption (i) the certificate(s) representing such shares
of Convertible Preferred Stock redeemed (or, in the event such certificate(s)
have been lost or destroyed, an affidavit of the Holder of loss or destruction
reasonably satisfactory to the Corporation as well as other support as
reasonably requested by the Corporation) and (ii) transfer instrument(s)
reasonably satisfactory to the Corporation and sufficient to transfer such
shares of Convertible Preferred Stock to the Corporation free of any adverse
interest. No interest shall accrue on the Redemption Price of any share of
Convertible Preferred Stock after its Redemption Date provided that the shares
of Common Stock and/or funds sufficient for the redemption shall have been made
available therefor and shall have been irrecoverably deposited or set aside.

                  In the event that, prior to a Redemption Date, any shares of
Convertible Preferred Stock shall be converted into Common Stock pursuant to
Section 6, then (i) the Corporation shall not have the right to redeem such
shares and (ii) shares of Common Stock and any funds which shall have been
deposited for the payment of the Redemption Price for such shares of Convertible
Preferred Stock shall be returned to the Corporation immediately after such
conversion (subject to declared dividends payable to Holders on the record date
for such dividends being so payable, to the extent set forth in Section 6
hereof, regardless of whether such shares are converted subsequent to such
record date and prior to the related dividend payment date).

                  (b) REDEMPTION AT THE OPTION OF THE HOLDER. During the 20
Trading Day period preceding each of the fifth, seventh, tenth and fifteenth
anniversaries of the Effective Time (each such period, a "HOLDER'S REDEMPTION
PERIOD"), a Holder may elect

                                       6
<PAGE>

to cause the Corporation to redeem all or any of the shares of Convertible
Preferred Stock held by such Holder. The Corporation shall redeem each such
share for the Face Value, plus all accrued and unpaid dividends whether or not
declared through the applicable anniversary (the "HOLDER'S REDEMPTION
CONSIDERATION"), for cash, shares of Common Stock or a combination thereof, at
the Corporation's option.

                  For any shares of Convertible Preferred Stock that the
Corporation elects to redeem for Common Stock, the amount of Common Stock to be
paid per share of Convertible Preferred Stock so redeemed shall equal (x) the
Holder's Redemption Consideration (or portion thereof to be paid in shares of
Common Stock), divided by (y) the Market Price as of the applicable anniversary
date.

                  A Holder electing to redeem one or more shares of Convertible
Preferred Stock shall provide notice in accordance with Section 13 to the
transfer agent designated by the Corporation for such purpose or, if there be
none, to the principal business offices of the Corporation (the "HOLDER'S
NOTICE"), postmarked (if not hand delivered) or received by the transfer agent
or principal business offices of the Corporation, as applicable (if hand
delivered), on a date within the applicable Holder's Redemption Period. Any
Holder's Notice that is mailed as herein provided, and includes the
documentation described in the next succeeding paragraph, shall be conclusively
presumed to have been duly given, and the shares of Convertible Preferred Stock
shall be deemed to be subject to redemption by the Corporation on the applicable
anniversary upon receipt of such notice by the Corporation.

                  A Holder shall include with the Holder's Notice (i) the
certificate(s) representing such shares of Convertible Preferred Stock redeemed
(or, in the event such certificate(s) have been lost or destroyed, an affidavit
of the Holder of loss or destruction reasonably satisfactory to the Corporation
as well as other support as reasonably requested by the Corporation) and (ii)
transfer instrument(s) reasonably satisfactory to the Corporation and sufficient
to transfer such shares of Convertible Preferred Stock to the Corporation free
of any adverse interest. No interest shall accrue on the Holder's Redemption
Consideration for any share of Convertible Preferred Stock after its redemption
date.

                  If less than all the shares represented by any such
surrendered certificate are redeemed, a new certificate shall be issued
representing the unredeemed shares. If, on or after the date the Corporation
receives the Holder's Notice, shares of Common Stock and/or funds necessary for
the redemption shall have been made available therefor and shall have been
irrecoverably deposited or set aside, then the dividends with respect to the
shares to be so redeemed shall cease to accrue after the date fixed for
redemption, the shares shall no longer be deemed outstanding, the Holders
thereof shall cease to be Holders of Convertible Preferred Stock, and all rights
whatsoever with respect to the shares so requested to be redeemed (except the
right of the Holders to receive payment of the redemption price as herein
provided without interest upon surrender of their certificates therefor) shall
terminate.

                                       7
<PAGE>

                  SECTION 6. CONVERSION. (a) RIGHT OF CONVERSION/AUTOMATIC
CONVERSION. Subject to and upon compliance with the provisions of this Section
6, each share of Convertible Preferred Stock shall, at the option of the Holder,
be convertible at any time (unless such share is called for redemption, then to
and including but not after the close of business on the date fixed for such
redemption, unless the Corporation shall default in payment due upon redemption
thereof), into that number of fully paid and non-assessable shares of Common
Stock (calculated as to each conversion to the nearest 1/100th of a share) equal
to the quotient obtained by dividing $50.00 by the Conversion Price (as defined
in Section 6(d)) in effect at such time and by surrender of such share so to be
converted in the manner provided in Section 6(b).

                  Each share of Convertible Preferred Stock shall automatically
be converted into that number of fully paid and non-assessable shares of Common
Stock (calculated as to each conversion to the nearest 1/100th of a share) equal
to the quotient obtained by dividing $50.00 by the Conversion Price in effect as
of the Expiration Date.

                  (b) MANNER OF EXERCISE OF CONVERSION. In order to exercise the
conversion privilege (or, in the case of an automatic conversion, receive the
Common Stock into which the shares of Convertible Preferred Stock have been
converted), the Holder of one or more shares of Convertible Preferred Stock to
be converted (or that have been converted, in the case of an automatic
conversion) shall surrender the certificate(s) representing such shares (or, in
the event such certificate(s) have been lost or destroyed, an affidavit of the
Holder of loss or destruction reasonably satisfactory to the Corporation as well
as other support as reasonably requested by the Corporation) to the transfer
agent designated by the Corporation for such purpose or, if there be none, to
the principal business offices of the Corporation, accompanied by the funds, if
any, required by the last paragraph of this Section 6(b) and shall give written
notice of conversion in compliance with Section 13 in the form provided on such
shares of Convertible Preferred Stock (or such other notice as is acceptable to
the Corporation) to the Corporation at such office or agency that the Holder
elects to convert the shares of Convertible Preferred Stock specified in said
notice. Such notice shall also state the name or names, together with address or
addresses, in which the certificate or certificates for shares of Common Stock
which shall be issuable in such conversion shall be issued. Each share of
Convertible Preferred Stock surrendered for conversion shall, unless the shares
issuable on conversion are to be issued in the same name as the name in which
such share is registered, be accompanied by instruments of transfer, in form
satisfactory to the Corporation, duly executed by the Holder or his duly
authorized attorney and an amount sufficient to pay any transfer or similar tax.
As promptly as practicable after the surrender of such shares of Convertible
Preferred Stock and the receipt of such notice, instruments of transfer and
funds, if any, as aforesaid, the Corporation shall issue and shall deliver at
such office or agency to such Holder, or on his written order, a certificate or
certificates for the number of full shares of Common Stock issuable upon the
conversion of such share of Convertible Preferred Stock in accordance with the
provisions of this Section 6 and a check or cash in respect of any fractional
interest in a share of Common Stock arising upon such conversion, as provided in
Section 6(c).

                                       8
<PAGE>

                  Each conversion, other than an automatic conversion, shall be
deemed to have been effected immediately prior to the close of business on the
date on which such shares of Convertible Preferred Stock shall have been
surrendered and such notice (and any applicable instruments of transfer and any
required taxes) is deemed received by the Corporation as aforesaid (such date,
the "CONVERSION DATE"). In the case of an automatic conversion, the Expiration
Date shall be the Conversion Date. The person or persons in whose name or names
any certificate or certificates for shares of Common Stock shall be issuable
upon a conversion, including an automatic conversion, shall be deemed to have
become the holder or holders of record of the shares represented thereby at the
close of business on the Conversion Date, and such conversion shall be at the
Conversion Price in effect at such time on such date, unless the stock transfer
books of the Corporation shall be closed on that date, in which event such
person or persons shall be deemed to have become such holder or holders of
record at the close of business on the next succeeding day on which such stock
transfer books are open, but such conversion shall be at the Conversion Price in
effect on the date upon which such shares of Convertible Preferred Stock shall
have been surrendered and such notice received by the Corporation.

                  (c) CASH PAYMENTS IN LIEU OF FRACTIONAL SHARES. No fractional
shares or scrip representing fractions of shares of Common Stock shall be issued
upon conversion of Convertible Preferred Stock. If more than one share of
Convertible Preferred Stock shall be surrendered for conversion at one time by
the same Holder, the number of full shares of Common Stock issuable upon
conversion thereof shall be computed on the basis of the aggregate of $50.00 for
each such share so surrendered. In lieu of any fractional interest in a share of
Common Stock which would otherwise be deliverable upon the conversion of any
share of Convertible Preferred Stock, the Corporation shall pay to the Holder of
such shares an amount in cash (computed to the nearest cent) equal to the
Closing Price on the Conversion Date (or the next Trading Day if such date is
not a Trading Day) multiplied by the fractional interest that otherwise would
have been deliverable upon conversion of such share.

                  (d) CONVERSION PRICE. The "CONVERSION PRICE" shall mean and be
$33.75, subject to adjustment by the Corporation on the applicable Conversion
Date as set forth in Section 6(e) below, and subject to adjustment by the
Corporation from time to time as set forth in Section 6(f), below.

                  (e) MARKET PRICE ADJUSTMENT TO CONVERSION PRICE. Solely with
respect to shares of Convertible Preferred Stock being converted on an
applicable Conversion Date:

                               (i) If and only if the Market Price on the
          applicable Conversion Date exceeds $35.10 (as such amount may be
          adjusted pursuant to Section 6(f)(v), the "TRIGGER PRICE"), the
          Conversion Price with respect to the shares of Convertible Preferred
          Stock being converted on such Conversion Date shall be adjusted as set
          forth in Section 6(e)(ii) (such adjustment, the "MARKET PRICE
          ADJUSTMENT").

                                       9
<PAGE>

                               (ii) If the Market Price Adjustment is applicable
          pursuant to Section 6(e)(i) above, the Conversion Price on the
          applicable Conversion Date shall be calculated as follows:

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

          Revised Conversion Price =             ($50 x Market Price)                           D
                                     -----------------------------------------------   X   ----------
                                     [(Market Price x A) + {B x (Market Price - C)}]          33.75
</TABLE>

         where:

         A = 1.4815
         B = 0.4792
         C = Trigger Price
         D = Conversion Price in effect after giving effect to any
             adjustments described in Section 6(f) and without giving effect to
             this Section 6(e).

         Any adjustment to the Conversion Price pursuant to this Section
         6(e)(ii) shall not require any adjustment to the Trigger Price pursuant
         to Section 6(f) below.

                  (f) OTHER ADJUSTMENTS.

                               (i) In case the Corporation shall (A) pay a
         dividend or make a distribution on its Common Stock in shares of Common
         Stock, (B) subdivide its outstanding shares of Common Stock into a
         greater number of shares, (C) combine its outstanding shares of Common
         Stock into a smaller number of shares, or (D) issue by
         reclassification, recapitalization or reorganization of its Common
         Stock (other than a reorganization in which the provisions of Section
         6(i) apply) any shares of capital stock of the Corporation, then in
         each such case the Conversion Price in effect immediately prior to such
         action shall be equitably adjusted so that the Holder of any share of
         Convertible Preferred Stock thereafter surrendered for conversion shall
         be entitled to receive the number of shares of Common Stock or other
         capital stock of the Corporation which such Holder would have owned or
         been entitled to receive immediately following such action had such
         share been converted immediately prior to the occurrence of such event.
         An adjustment made pursuant to this subsection (f)(i) shall become
         effective immediately after the record date, in the case of a dividend
         or distribution, or immediately after the effective date, in the case
         of a subdivision, combination, reclassification, recapitalization or
         reorganization. If, as a result of an adjustment made pursuant to this
         subsection (f)(i), the Holder of any share of Convertible Preferred
         Stock thereafter surrendered for conversion shall become entitled to
         receive shares of two or more classes of capital stock or shares of
         Common Stock and other capital stock of the Corporation, the Board of
         Directors in the exercise of its good faith judgment (whose
         determination shall be described in a statement filed by the
         Corporation with the stock transfer or conversion agent, as
         appropriate) shall determine the allocation of the adjusted Conversion
         Price between or among shares of such classes of capital stock or
         shares of Common Stock and other capital stock.

                                       10
<PAGE>

                               (ii) In case the Corporation shall issue options,
         rights or warrants to holders of its outstanding shares of Common Stock
         entitling them (for a period expiring within 45 days after the date
         mentioned below) to subscribe for or purchase shares of Common Stock or
         other securities convertible or exchangeable for shares of Common Stock
         at a price per share less than the Current Market Price (as determined
         pursuant to subsection (iv) of this Section 6(f)) (other than pursuant
         to any stock option, restricted stock or other incentive or benefit
         plan or stock ownership or purchase plan for the benefit of employees,
         directors or officers or any dividend reinvestment plan of the
         Corporation in effect at the time hereof or any other similar plan
         adopted or implemented hereafter, it being agreed that none of the
         adjustments set forth in this Section 6(f) shall apply to the issuance
         of stock, options, rights, warrants or other property pursuant to any
         stock option, restricted stock or other incentive or benefit plan or
         stock ownership or purchase plan for the benefit of employees,
         directors or officers or any dividend reinvestment plan for the
         Corporation in effect at the time hereof or any other similar plan
         adopted or implemented hereafter), then the Conversion Price in effect
         immediately prior thereto shall be adjusted so that it shall equal the
         price determined by multiplying the Conversion Price in effect
         immediately prior to the date of issuance of such rights or warrants by
         a fraction of which the numerator shall be the number of shares of
         Common Stock outstanding on the date of issuance of such rights or
         warrants (immediately prior to such issuance) plus the number of shares
         which the aggregate offering price of the total number of shares so
         offered would purchase at such Current Market Price, and of which the
         denominator shall be the number of shares of Common Stock outstanding
         on the date of issuance of such rights or warrants (immediately prior
         to such issuance) plus the number of additional shares of Common Stock
         offered for subscription or purchase. Such adjustment shall be made
         successively whenever any rights or warrants are issued, and shall
         become effective immediately after the record date for the
         determination of stockholders entitled to receive such rights or
         warrants; PROVIDED, HOWEVER, in the event that all the shares of Common
         Stock offered for subscription or purchase are not delivered upon the
         exercise of such rights or warrants, upon the expiration of such rights
         or warrants the Conversion Price shall be readjusted to the Conversion
         Price which would have been in effect had the numerator and the
         denominator of the foregoing fraction and the resulting adjustment been
         made based upon the number of shares of Common Stock actually delivered
         upon the exercise of such rights or warrants rather than upon the
         number of shares of Common Stock offered for subscription or purchase.
         In determining whether any security covered by this Section 6(f)(ii)
         entitles the holder thereof to subscribe for or purchase shares of
         Common Stock at less than such Current Market Price, and in determining
         the aggregate offering price of such shares of Common Stock, there
         shall be taken into account any consideration received by the
         Corporation for such rights, warrants or convertible or exchangeable
         securities, plus the aggregate amount of additional consideration (as
         set forth in the instruments relating thereto) to be received by the
         Corporation upon the exercise, conversion or exchange of such
         securities, the value of such consideration, if other than cash, to
         be determined by the Board of Directors in the exercise of its good
         faith

                                       11
<PAGE>

         judgment (whose determination shall be described in a statement filed
         by the Corporation with the stock transfer or conversion agent, as
         appropriate).

                               (iii) In case the Corporation shall, by dividend
         or otherwise, distribute to holders of its outstanding Common Stock
         that is not also distributed to holders of its Convertible Preferred
         Stock on an as-converted basis as of the record date for the
         determination of stockholders entitled to receive such distribution,
         evidences of its indebtedness or assets (including securities and cash,
         but excluding any regular periodic cash dividend of the Corporation and
         dividends or distributions payable in stock for which adjustment is
         made pursuant to subsection (i) of this Section 6(f)) or options,
         rights or warrants to subscribe for or purchase securities of the
         Corporation (excluding those referred to in subsection (ii) of this
         Section 6(f)), then in each such case the Conversion Price shall be
         adjusted so that the same shall equal the price determined by
         multiplying the Conversion Price in effect immediately prior to the
         record date of such distribution by a fraction of which the numerator
         shall be the Current Market Price as of the Time of Determination less
         the fair market value on such record date (as determined by the Board
         of Directors in the exercise of its good faith judgment, whose
         determination shall be described in a statement filed by the
         Corporation with the stock transfer or conversion agent, as
         appropriate) of the portion of the capital stock or assets or the
         evidences of indebtedness or assets so distributed to the holder of one
         share of Common Stock or of such subscription rights or warrants
         applicable to one share of Common Stock, and of which the denominator
         shall be such Current Market Price. Such adjustment shall become
         effective immediately after the record date for the determination of
         stockholders entitled to receive such distribution.

                               (iv) For the purpose of any computation under
         subsections (ii) and (iii) of this Section 6(f), the "CURRENT MARKET
         PRICE" per share of Common Stock on any date shall be deemed to be the
         average of the daily Closing Prices for the shorter of (A) 10
         consecutive Trading Days ending on the day immediately preceding the
         applicable Time of Determination (as defined below) or (B) the period
         commencing on the date next succeeding the first public announcement of
         the issuance of such rights or warrants or such distribution through
         such last day prior to the applicable Time of Determination. For
         purposes of the foregoing, the term "TIME OF DETERMINATION" shall mean
         the time and date of the record date for determining stockholders
         entitled to receive the rights, warrants or distributions referred to
         in Section 6(f)(ii) and (iii).

                               (v) In any case in which this Section 6(f) shall
         require that an adjustment be made to the Conversion Price, the Trigger
         Price shall be adjusted as follows:

                                                                     35.10
               Revised Trigger Price = Revised Conversion Price x  ----------
                                                                     33.75

                               (vi) In any case in which this Section 6(f) shall
         require that an adjustment be made immediately following a record date
         or an effective date, the

                                       12
<PAGE>

         Corporation may elect to defer (but only until the filing by the
         Corporation with the stock transfer or conversion agent, as the case
         may be, of the certificate required by subsection (viii)) issuing to
         the holder of any share of Convertible Preferred Stock converted after
         such record date or effective date the shares of Common Stock issuable
         upon such conversion over and above the shares of Common Stock issuable
         upon such conversion on the basis of the Conversion Price prior to
         adjustment, and paying to such holder any amount of cash in lieu of a
         fractional share.

                               (vii) No adjustment in the Conversion Price shall
         be required to be made pursuant to this Section 6(f) unless such
         adjustment would require an increase or decrease of at least 1% of such
         price; PROVIDED, HOWEVER, that any adjustments which by reason of this
         subsection (f)(vii) are not required to be made shall be carried
         forward and taken into account in any subsequent adjustment. All
         calculations under this Section 6(f) shall be made to the nearest cent
         or to the nearest 1/1000th of a share, as the case may be. Anything in
         this Section 6(f) to the contrary notwithstanding, the Corporation
         shall be entitled to make such reduction in the Conversion Price, in
         addition to those required by this Section 6(f), as it in its
         discretion shall determine to be advisable in order that any stock
         dividend, subdivision of shares, distribution of rights to purchase
         stock or securities, or distribution of securities convertible into or
         exchangeable for stock hereafter made by the Corporation to its
         stockholders shall not be taxable to the recipients. Except as set
         forth in subsections (f)(i), (f)(ii), and (f)(iii) and Section 6(e)
         above, the Conversion Price shall not be adjusted for the issuance of
         Common Stock, or any securities convertible into or exchangeable for
         Common Stock or carrying the right to purchase any of the foregoing, in
         exchange for cash, property or services.

                               (viii) Whenever the Conversion Price is adjusted
         pursuant to this Section 6(f), (A) the Corporation shall promptly file
         with the stock transfer or conversion agent, as appropriate, a
         certificate setting forth the Conversion Price after such adjustment
         and a brief statement of the facts requiring such adjustment and the
         manner of computing the same, which certificate shall, absent manifest
         error (including the failure to make any other required adjustment
         under this Section 6(f)), be conclusive evidence of the correctness of
         such adjustment, and (B) the Corporation shall also mail or cause to be
         mailed by first class mail, postage prepaid, as soon as practicable to
         each Holder a notice stating that the Conversion Price has been
         adjusted and setting forth the adjusted Conversion Price. The stock
         transfer or conversion agent, as the case may be, shall not be under
         any duty or responsibility with respect to the certificate required by
         this subsection (viii) except to exhibit the same to any Holder who
         requests to inspect it.

                               (ix) In the event that at any time, as a result
         of an adjustment made pursuant to subsections (i), (ii) or (iii) of
         this Section 6(f), the Holder of any share of Convertible Preferred
         Stock thereafter surrendered for conversion shall become entitled to
         receive any shares of the Corporation other than shares of Common
         Stock, thereafter the Conversion Price of such other shares so
         receivable upon conversion of any share of Convertible Preferred Stock
         shall be subject to

                                       13
<PAGE>

         adjustment from time to time in a manner and on terms as nearly
         equivalent as practicable to the provisions with respect to Common
         Stock contained in this Section.

                               (x) The Corporation from time to time in its sole
         discretion may decrease the Conversion Price by any amount for any
         period of time if the period is at least 20 days and if the decrease is
         irrevocable during the period. Whenever the Conversion Price is so
         decreased, the Corporation shall mail to all Holders a notice of the
         decrease at least 15 days before the date the decreased Conversion
         Price takes effect, and such notice shall state the decreased
         Conversion Price and the period it will be in effect.

                  (g) RESERVATION OF SHARES OF COMMON STOCK. The Corporation
covenants that it will at all times reserve and keep available, free from
preemptive rights (other than such rights as do not affect the ownership of
shares issued to a Holder), out of the aggregate of its authorized but unissued
shares of Common Stock or its issued shares of Common Stock held in its
treasury, or both, for the purpose of effecting conversions of shares of
Convertible Preferred Stock, the full number of shares of Common Stock
deliverable upon the conversion of all outstanding shares of Convertible
Preferred Stock not theretofore converted or redeemed and on or before taking
any action that would cause an adjustment of the Conversion Price resulting in
an increase in the number of shares of Common Stock deliverable upon conversion
above the number thereof previously reserved and available therefor, the
Corporation shall take all such action so required. For purposes of this Section
6(g), the number of shares of Common Stock which shall be deliverable upon the
conversion of all outstanding shares of Convertible Preferred Stock shall be
computed as if at the time of computation all outstanding shares of Convertible
Preferred Stock were held by a single holder.

                  Before taking any action which would cause an adjustment
reducing the Conversion Price below the then par value (if any) of the shares of
Common Stock deliverable upon conversion of the shares of Convertible Preferred
Stock, the Corporation shall take any corporate action which may, in the opinion
of its counsel, be necessary in order that the Corporation may validly and
legally issue fully paid and non-assessable shares of Common Stock at such
adjusted Conversion Price.

                  (h) TRANSFER TAXES, ETC. The Corporation shall pay any and all
documentary stamp, issue or transfer taxes, and any other similar taxes payable
in respect of the issue or delivery of shares of Common Stock upon conversions
of shares of Convertible Preferred Stock pursuant hereto; PROVIDED, HOWEVER,
that the Corporation shall not be required to pay any tax which may be payable
in respect of any transfer involved in the issue or delivery of shares of Common
Stock in a name other than that of the holder of the shares of Convertible
Preferred Stock to be converted and no such issue or delivery shall be made
unless and until the person requesting such issue or delivery has paid to the
Corporation the amount of any such tax or has established, to the satisfaction
of the Corporation, that such tax has been paid.

                  (i) CONSOLIDATION OR MERGER OR SALE OF ASSETS. For purposes of
this paragraph (i), a "Sale Transaction" means any transaction or event,
including any merger,

                                       14
<PAGE>

consolidation, sale of assets, tender or exchange offer, reclassification,
compulsory share exchange or liquidation, in which all or substantially all
outstanding shares of the Corporation's Common Stock are converted into or
exchanged for stock, other securities, cash or assets or following which any
remaining outstanding shares of Common Stock fail to meet the listing standards
imposed by each of the New York Stock Exchange, the American Stock Exchange and
the Nasdaq National Market at the time of such transaction, but shall not
include any transaction the primary purpose of which is the reincorporation of
the Corporation in another U.S. jurisdiction so long as in such transaction each
share of Convertible Preferred Stock shall convert into an equity security of
the successor to the Corporation having identical dividends, rights and
preferences as the Convertible Preferred Stock. If a Sale Transaction occurs,
then each Holder shall have the right to elect one of the following: (i) such
Sale Transaction shall be deemed a liquidation for purposes of Section 4, and
the amount of the liquidating distribution to holders of Common Stock for
purposes of calculating the liquidation preference payable under Section 4 shall
be deemed to be zero, (ii) provision shall be made so that such Holder receives
in exchange for each outstanding share of Convertible Preferred Stock held by
such Holder the kind and amount of securities, cash or other property receivable
upon such Sale Transaction by a holder of the number of shares of Common Stock
into which such share of Convertible Preferred Stock might have been converted
immediately prior to such Sale Transaction assuming such holder of Common Stock
did not exercise his rights of election, if any, as to the kind or amount of
securities, cash or other property receivable upon such Sale Transaction
(provided that, if the kind or amount of securities, cash or other property
receivable upon such Sale Transaction is not the same for each share of Common
Stock in respect of which such rights of election shall not have been exercised
("NON-ELECTING SHARE"), then for the purposes of this Section 6(i) the kind and
amount of securities, cash or other property receivable upon such Sale
Transaction for each Non-Electing Share shall be deemed to be the kind and
amount so receivable per share by a plurality of the Non-Electing Shares) or
(iii) to the extent permitted under applicable law, lawful provision shall be
made by the corporation, if any, formed by the Sale Transaction or the
corporation, if any, whose securities, cash or other property will immediately
after the Sale Transaction be owned, by virtue of such Sale Transaction, by the
holders of Common Stock immediately prior to such Sale Transaction, or the
corporation, if any, which shall have acquired (whether directly or indirectly)
in such Sale Transaction such assets or securities of the Corporation
(collectively the "FORMED, SURVIVING OR ACQUIRING CORPORATION"), as the case may
be, providing that the Holder of each share of Convertible Preferred Stock then
outstanding shall receive in exchange for each such share of Convertible
Preferred Stock an equity security of the Formed, Surviving or Acquiring
Corporation having substantially equivalent dividends, rights and preferences as
the Convertible Preferred Stock ("MIRROR PREFERRED STOCK"), except that the
Holder thereof shall have the right thereafter to convert such Mirror
Preferred Stock into the kind and amount of securities, cash or other
property receivable upon such Sale Transaction by a holder of the number of
shares of Common Stock into which such share of Convertible Preferred Stock
might have been converted immediately prior to such Sale Transaction assuming
such holder of Common Stock did not exercise his rights of election, if any,
as to the kind or amount of securities, cash or other property receivable
upon such Sale Transaction. Each Holder shall be provided notice of the Sale
Transaction not later than twenty (20) days prior to the effective date
thereof, which notice shall detail the material

                                       15
<PAGE>

terms of the Sale Transaction, including without limitation the nature and
amount of consideration payable to the holders of Common Stock in such Sale
Transaction. In the event that a Holder elects option (iii) and such option
is not permitted under applicable law, at the option of the Corporation, (A)
the Formed, Surviving or Acquiring Corporation will cause a U.S. subsidiary of
such Formed, Surviving or Acquiring Corporation to issue a security
satisfying the terms described in option (iii) above or (B) such Sale
Transaction shall be deemed a liquidation for purposes of Section 4, and the
amount of the liquidating distribution to holders of Common Stock for
purposes of calculating the liquidation preference payable under Section 4
shall be deemed to be 120% of the amount of the liquidation preference
payable to a Holder of Convertible Preferred Stock pursuant to clause (a) of
Section 4 hereof (I.E., initially $50), as such amount may be adjusted from
time to time pursuant to the terms of this Certificate. The Formed, Surviving
or Acquiring Corporation shall, if applicable, make provision in its
certificate or articles of incorporation or other constituent documents to
the end that the provisions set forth in this Section 6(i) shall thereafter
correspondingly be made applicable, as nearly as may reasonably be, in
relation to any shares of stock or other securities or property thereafter
deliverable on the conversion of the Convertible Preferred Stock.

                  Notwithstanding anything to the contrary herein, there will be
no adjustments in connection with a Sales Transaction pursuant to Section
6(f) hereof except as provided in this Section 6(i). The above provisions of
this Section 6(i) shall similarly apply to successive Sale Transactions;
PROVIDED, HOWEVER, that in no event shall a Holder of a share of Convertible
Preferred Stock be entitled to more than one adjustment pursuant to this
Section 6(i) in respect of a series of related transactions.

                  SECTION 7. VOTING RIGHTS. The Holders shall not have any
voting rights by virtue of their ownership of the Convertible Preferred Stock
except as set forth herein or as otherwise from time to time may be required by
law. In connection with any vote in which the holders of Common Stock are
entitled to vote (other than pursuant to Section C(7) of Article IV of the
Restated Certificate of Incorporation of the Corporation relating to the
separate right of the holders of Common Stock as a class to elect 25% of the
Corporation's directors), a Holder will have two votes for each share of
Convertible Preferred Stock held, such votes to be cast together with the votes
of the holders of the Common Stock, voting together as a single class. Any
shares of Convertible Preferred Stock held by the Corporation or any entity
controlled by the Corporation shall not have voting rights hereunder and shall
not be counted in determining the presence of a quorum.

                  SECTION 8. OUTSTANDING SHARES. For purposes of this
Certificate of Resolution, all shares of Convertible Preferred Stock shall be
deemed outstanding except (i) from the date fixed for redemption pursuant to
Section 5, all shares of Convertible Preferred Stock that have been so called
for redemption under Section 5 if shares of Common Stock and funds necessary for
payment of the redemption price, as the case may be, have been irrevocably set
apart; (ii) from the date of surrender of certificates representing shares of
Convertible Preferred Stock, all shares of Convertible Preferred Stock converted
into Common Stock; and (iii) from the date of registration of transfer, all
shares of Convertible Preferred Stock held of record by the Corporation or any
subsidiary of the Corporation.

                                       16
<PAGE>

                  SECTION 9. STATUS OF ACQUIRED SHARES. Shares of Convertible
Preferred Stock redeemed by the Corporation, received upon conversion pursuant
to Section 6, cancelled pursuant to Section 2 or otherwise acquired by the
Corporation will be restored to the status of authorized and unissued shares of
preferred stock, without designation as to series, and may thereafter be issued,
but not as shares of Convertible Preferred Stock.

                  SECTION 10. PREEMPTIVE RIGHTS. The Convertible Preferred Stock
is not entitled to any preemptive or subscription rights in respect of any
securities of the Corporation.

                  SECTION 11. COVENANT REGARDING SHARES OF COMMON STOCK. All
shares of Common Stock which may be delivered upon conversion or redemption of
shares of Convertible Preferred Stock, or in connection with any dividend
payment, will upon delivery be duly and validly issued and fully paid and
non-assessable, free of all liens and charges and not subject to any preemptive
rights (other than rights which do not affect the Holder's right to own the
shares of Common Stock to be issued), and prior to the applicable Redemption
Date, Dividend Date or Conversion Date, the Corporation shall take any corporate
action necessary therefor. The issuance of all such shares of Common Stock
shall, to the extent permitted by law, be registered under the Securities Act of
1933, as amended.

                  SECTION 12. SEVERABILITY OF PROVISIONS. Whenever possible,
each provision hereof shall be interpreted in a manner as to be effective and
valid under applicable law, but if any provision hereof is held to be prohibited
by or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating or otherwise
adversely affecting the remaining provisions hereof. If a court of competent
jurisdiction should determine that a provision hereof would be valid or
enforceable if a period of time were extended or shortened or a particular
percentage were increased or decreased, then such court may make such change as
shall be necessary to render the provision in question effective and valid under
applicable law.

                  SECTION 13. NOTICES. Any notice to Holders or USA required
pursuant to this Certificate of Designations shall be in writing and shall be
deemed effectively given: (i) upon personal delivery to the party to be
notified, (ii) three (3) business days after having been sent by registered
or certified mail, return receipt requested, postage prepaid, (iii) one (1)
day after deposit with a nationally recognized overnight courier, specifying
next day delivery, with verification of receipt, and (iv) five (5) business
days after having been sent by first class mail, postage prepaid. All notices
to Holders shall be addressed to each Holder of record at the address of such
Holder appearing on the books of the Corporation.

                                       17
<PAGE>

                  IN WITNESS WHEREOF, this Certificate of Designations is
executed on behalf of the Corporation by ____________, its ____________, and its
corporate seal to be hereunto affixed and attested by ___________, its
Secretary, this ____ day of _________, 2001.

                                            USA NETWORKS, INC.

                                            By:  /s/
                                               ---------------------------------
                                                 Name:
                                                 Title:

 [SEAL]

Attest:

 /s/
------------------------------------

------------------------------------
Secretary

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