Document:

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                                                                     EXHIBIT 4.3

                                 WRITTEN CONSENT
                                       OF
                     THE CHAIRMAN OF THE BOARD OF DIRECTORS
                                       OF
                             BERKSHIRE HATHAWAY INC.

          WHEREAS, Berkshire Hathaway Inc. (the "Corporation") has executed and
delivered an Indenture (the "Base Indenture"), dated as of May 28, 2002, to The
Bank of New York (the "Trustee") to provide for the future issuance of the
Corporation's Securities (as defined therein), to be issued from time to time in
one or more series as determined by the Corporation under the Base Indenture;

          WHEREAS, pursuant to the terms of the Base Indenture, the Corporation
desires to provide for the establishment of a new series of Securities to be
known as its 3.0% Senior Notes due 2007 (the "Notes"), the form and substance of
such Notes and the terms, provisions and conditions thereof to be set forth as
provided in the Base Indenture and these resolutions, including Exhibit A hereto
(together, the "Indenture");

          WHEREAS, in a special meeting of the Board of Directors of the
Corporation (the "Board"), held on May 20, 2002, the Board delegated the full
power and authority of the Board to its Chairman (the "Chairman"), among other
things, "to determine, approve, and authorize the number of SQUARZ to be issued,
the aggregate principal amount of the Notes constituting a component of the
SQUARZ, the number of warrants that constitute a component of the SQUARZ, the
number of Berkshire class A common shares and class B common shares that may be
purchased upon exercise of the warrants, the underwriting discounts and
commissions to be paid or allowed by Berkshire, and all other financial and
other terms of the SQUARZ;"

          WHEREAS, the Notes are a component part of the SQUARZ, and the
issuance thereof is a necessary precondition to the issuance of SQUARZ; and

          WHEREAS, for the purpose of setting forth, as provided for in the Base
Indenture, the form and substance of the Notes and the terms, provisions and
conditions thereof, the Chairman has taken the resolutions set forth below.

          NOW, THEREFORE, BE IT RESOLVED, that the determination of the terms,
provisions, and conditions of the Notes as set forth in Exhibit A, including the
form of Note, are hereby authorized and approved;

          RESOLVED FURTHER, that the officers of the Corporation request that
the Trustee satisfy all requirements necessary to make the Notes, when executed
by the Corporation and authenticated and delivered by the Trustee, the valid
obligations of the Corporation and do all other acts and things necessary to
make the Indenture and the Notes enforceable in accordance with their respective
terms;

          RESOLVED FURTHER, that the Base Indenture is in all respects ratified
and confirmed;

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          RESOLVED FURTHER, that the officers of the Corporation are each hereby
authorized on behalf of the Corporation to do and perform all such further acts
and things including, without limitation, preparing press releases, and
executing and delivering, and, where necessary, appropriate, or advisable,
filing with the appropriate governmental authorities, all such certificates,
contracts, bonds, agreements, documents, instruments, receipts or other papers
and making all such payments, including payments of all fees and expenses, and
the engagement of such persons, as in the judgment of such officer shall be
necessary, appropriate or advisable to carry out the purpose and intent of any
and all of the foregoing resolutions and each of the transactions contemplated
thereby; and

          RESOLVED FURTHER, that any actions taken by any of the officers of the
Corporation prior to the adoption of these resolutions which are within the
authority conferred hereby are hereby ratified, confirmed and approved.

                                       -2-

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          IN WITNESS WHEREOF, the undersigned has affixed his signature as of
this 28th day of May, 2002.

                                                  /s/ Warren E. Buffett
                                                 -------------------------------
                                                 Warren E. Buffett, Chairman

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                                    EXHIBIT A

                             BERKSHIRE HATHAWAY INC.

           TERMS OF THE 3.0% SENIOR NOTES DUE 2007 (THE "NOTE TERMS")

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1    Definition of Terms. Unless otherwise provided herein or
unless the context otherwise requires:

            (a)     a term defined in the Indenture (the "Base Indenture"),
dated as of May 28, 2002, between Berkshire Hathaway Inc. and The Bank of New
York, to the extent not defined in these Note Terms, has the same meaning when
used in these Note Terms;

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

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

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

            (e)     the following terms have the meanings given to them as set
forth below:

     "Business Day" means any day, other than a Saturday, a Sunday or a day on
which banking institutions in the Borough of Manhattan, the City of New York are
authorized or required by law, regulation or executive order to close.

     "Class" is defined in Section 2.1(b).

     "Class A Note" means any Note other than a Class B Note or a Class C Note.
All Notes constituting part of a SQUARZ are Class A Notes.

     "Class B Note" means a Note that was a component of a SQUARZ when the
SQUARZ holder exercised, more than 90 days prior to the first Scheduled
Repurchase Date that follows the date of exercise, the Underlying Warrant that
was also a component of that SQUARZ. No Note that constitutes part of a SQUARZ
shall be a Class B Note.

     "Class C Note" means a Note that was a component of a SQUARZ when the
SQUARZ holder exercised, not more than 90 days prior to the first Scheduled
Repurchase Date that follows the date of exercise, the Underlying Warrant that
was also a component of that SQUARZ. No Note that constitutes part of a SQUARZ
shall be a Class C Note.

     "Collateral Agent" shall mean The Bank of New York, as initial Collateral
Agent under the Pledge Agreement.

     "DTC" shall mean The Depository Trust Company, the original depositary for
the Notes.

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     "Failed Remarketing Repurchase Date" shall mean the earlier of May 15, 2007
or the Underlying Warrant Early Expiration Date.

     "Global Notes" means Notes that constitute Global Securities.

     "Indenture" means the Base Indenture and these Note Terms.

     "Interest Payment Date" means each May 15 and November 15, beginning
November 15, 2002 and ending on the Stated Maturity of the Notes.

     "Interest Rate" shall have the meaning set forth in Section 2.5(a) of these
Note Terms.

     "Notes" shall have the meaning set forth in Section 2.1 of these Note
Terms.

     "Original Issue Date" shall have the meaning set forth in Section 4.2 of
these Note Terms.

     "Over-Allotment Option" shall mean the option granted by the Company to
Goldman, Sachs & Co. pursuant to the Purchase Agreement, dated as of May 22,
2002, by and between the Company and Goldman, Sachs & Co., to purchase up to an
additional 10,000 SQUARZ from the Company until June 21, 2002.

     "Pledge Agreement" shall mean the Pledge Agreement, dated as of May 28,
2002, by and among the Company, as secured party, the Collateral Agent, the
SQUARZ Agent and the other parties thereto.

     "Predecessor Security" shall have the meaning set forth in the Base
Indenture, provided that Notes of any Class issued hereunder shall be considered
Predecessor Securities to Notes of another Class upon an event or transaction as
provided in Section 2.1(b).

     "Private Placement Legend" shall mean the legends marked as *3 and *4 in
the form of Note set forth in Section 3.1 hereof.

     "Put" shall have the meaning set forth in Section 6.2.

     "Put Exercise Notice" shall mean a written notice of a Holder's exercise of
its Put, in a form provided for such purpose by the Company (and reasonably
acceptable to the Trustee), which notice will include the specification by the
Holder of the Notes to be Put and a certification by the Holder that it is the
beneficial owner of such Notes. The Company shall provide an alternate form of
notice (reasonably acceptable to the Trustee) appropriate for use by holders of
SQUARZ with a right to Put the Note constituting a part of such SQUARZ, which
will include, among other things, all information necessary to confirm such
SQUARZ holder's beneficial interest in such Note and, in the event of a Put
pursuant to Section 6.1(c), that such holder is surrendering and cancelling its
Underlying Warrant in accordance with the SQUARZ Agreement.

     "QIB" shall mean any "qualified institutional buyer" (as defined in Rule
144A).

                                       -2-

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     "Registration Statement" shall mean an effective shelf registration
statement under the Securities Act that registers the resale by Holders (and
beneficial owners) of Notes.

     "Repurchase Date" shall mean the Failed Remarketing Repurchase Date and any
Scheduled Repurchase Date.

     "Repurchase Price" shall have the meaning set forth in Section 6.1.

     "Resale Restriction Termination Date" shall mean, for any Restricted Note
(or beneficial interest therein), two years (or such other period specified in
Rule 144(k) under the Securities Act) from the Original Issue Date.

     "Reset Rate" shall mean the interest rate per annum determined by the
Remarketing Agent in connection with a Successful Remarketing.

     "Restricted Note" shall mean any Note until such time as:

            (i)     such Note has been transferred pursuant to a Registration
                    Statement;

            (ii)    the Resale Restriction Termination Date therefor has passed;
                    or

            (iii)   the Private Placement Legend therefor has otherwise been
                    removed pursuant to Section 7.1(b) or, in the case of a
                    beneficial interest in a Global Note, such beneficial
                    interest has been exchanged for an interest in a Global Note
                    not bearing a Private Placement Legend.

     "Rule 144" shall mean Rule 144 under the Securities Act (or any successor
rule).

     "Rule 144A" shall mean Rule 144A under the Securities Act (or any successor
rule).

     "Scheduled Repurchase Date" shall mean May 15 of each of 2003, 2004, 2005
and 2006.

     "Securities Act" shall mean the Securities Act of 1933, as amended.

     "SQUARZ Agreement" shall mean the SQUARZ Agreement, dated as of May 28,
2002, between the Company and The Bank of New York, as SQUARZ Agent.

            (f)     The following terms shall have the meanings given to them in
the SQUARZ Agreement:

     Failed Remarketing
     Pledge
     Remarketing
     Remarketing Agent
     Remarketing Date
     Remarketing Event
     Required Acceleration Event
     Requisite Amount

                                       -3-

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     SQUARZ
     SQUARZ Agent
     Stripped SQUARZ
     Substitute Pledged Treasuries
     Successful Remarketing
     Underlying Warrant
     Underlying Warrant Early Expiration Date
     Underlying Warrant Exercise Price
     Underlying Warrant Installment Payment

                                    ARTICLE 2
                    GENERAL TERMS AND CONDITIONS OF THE NOTES

     Section 2.1    DESIGNATION, PRINCIPAL AMOUNT, AUTHORIZED DENOMINATION, AND
CLASSES.

            (a)     There is hereby authorized a series of Securities designated
the 3.0% Senior Notes due 2007 (the "Notes"), limited in aggregate principal
amount to $500,000,000.00; the amount of which to be issued shall from time to
time be as set forth in any Company Order for the authentication and delivery of
such Notes pursuant to the Base Indenture. The Notes shall be issuable in
denominations of $10,000.00 and integral multiples thereof.

            (b)     The Notes shall consist of three classes (Class A, Class B
and Class C (each, a "Class")) of Notes as described herein. For all purposes of
the Indenture (including, without limitation calculating percentages in
principal amount of Notes Outstanding), the Class A, Class B and Class C Notes
shall all be considered to be Securities of one and the same series.

                    (i)     Exercise of an Underlying Warrant. Upon the exercise
     by a holder of SQUARZ of an Underlying Warrant comprising part of such
     SQUARZ, and receipt by the Trustee of

                            (A)  a certificate by the SQUARZ Agent (with a copy
                            to the Collateral Agent) certifying (1) that the
                            Underlying Warrant was duly exercised in accordance
                            with its terms, (2) the identity of the holder of
                            the SQUARZ, the certificate or other identifying
                            number of the SQUARZ, if applicable, and all other
                            information required by the Trustee in order to
                            issue a Note to the SQUARZ holder, (3) the date of
                            exercise of the Underlying Warrant, (4) that, in
                            connection with such exercise, the SQUARZ Agent
                            received from the SQUARZ holder the Underlying
                            Warrant Exercise Price plus an amount in cash equal
                            to the full amount of the next Underlying Warrant
                            Installment Payment (and not only the accrued amount
                            of such payment, except in the case of exercise
                            following a Failed Remarketing where the amount due
                            is the amount accrued to, but excluding, the Failed
                            Remarketing Repurchase Date) and (5) that the SQUARZ
                            Agent has paid such amounts to the Company;

                                       -4-

<PAGE>

                            (B)  a certificate by the Collateral Agent (with a
                            copy to the SQUARZ Agent) certifying that, in
                            connection with such exercise of the Underlying
                            Warrant and payment of the Underlying Warrant
                            Exercise Price and any Underlying Warrant
                            Installment Payment due to the Company, a Note has
                            been released from the Pledge; and

                            (C)  the Note so released from the Pledge, by
                            surrender of a certificate (if held in definitive
                            form) or otherwise transferred to the Trustee (if
                            held as a Global Note);

     then, the Trustee shall issue in the name of the SQUARZ holder, and deliver
     to the SQUARZ Agent (X) a Class B Note, if the date of exercise of the
     Underlying Warrant was more than 90 days before the next Scheduled
     Repurchase Date, or (Y) a Class C Note, if the date of exercise of the
     Underlying Warrant is not more than 90 days before the next Scheduled
     Repurchase Date.

                    (ii)    Creation of a Stripped SQUARZ. Upon the receipt by
     the Trustee of:

                            (A)  a certificate by the SQUARZ Agent (with a copy
                            to the Collateral Agent) certifying (1) that a
                            holder of a SQUARZ has elected to separate the Note
                            comprising part of its SQUARZ, (2) the identity of
                            the holder of the SQUARZ, the certificate or other
                            identifying number of the SQUARZ, if applicable, and
                            all other information required by the Trustee in
                            order to issue a Note to the SQUARZ holder;

                            (B)  a certificate by the Collateral Agent (with a
                            copy to the SQUARZ Agent) certifying that it has
                            received the Requisite Amount of Substitute Pledged
                            Treasuries from such holder pursuant to the terms of
                            the Pledge Agreement and that, thereupon, a Note has
                            been released from the Pledge; and

                            (C)  the Note so released from the Pledge, by
                            surrender of a certificate duly endorsed for
                            transfer (if held in definitive form) or otherwise
                            transferred to the Trustee (if held as a Global
                            Note);

     then, the Trustee shall issue in the name of such SQUARZ holder, and
     deliver to the SQUARZ Agent, a Class A Note.

                    (iii)   Re-creation of a SQUARZ. Upon the receipt by the
     Trustee of:

                            (A)  a certificate by the SQUARZ Agent (with a copy
                            to the Collateral Agent) certifying (1) that a
                            holder of a Stripped SQUARZ has elected to combine a
                            Note with such Stripped SQUARZ in order to recreate
                            a SQUARZ, (2) the identity of the holder of the
                            Stripped SQUARZ, the certificate or other
                            identifying

                                       -5-

<PAGE>

                            number of the Stripped SQUARZ, if applicable, and
                            all other information required by the Trustee in
                            order to transfer the Note held by the SQUARZ holder
                            to the Collateral Agent;

                            (B)  a certificate by the Collateral Agent (with a
                            copy to the SQUARZ Agent) certifying that it has
                            received a Note from such holder pursuant to the
                            terms of the Pledge Agreement and that, thereupon,
                            the Requisite Amount of Substitute Pledged
                            Treasuries have been released from the Pledge; and

                            (C)  such holder's Note, by surrender of a
                            certificate duly endorsed for transfer (if held in
                            definitive form) or otherwise transferred to the
                            Trustee (if held as a Global Note);

     then, the Trustee shall issue in the name of the Collateral Agent, and
     deliver to the Collateral Agent, a Class A Note subject to the Pledge.

                    (iv)    On the date following each Scheduled Repurchase
     Date, all Class C Notes Outstanding on such Scheduled Repurchase Date shall
     thereupon, without action of the Holder thereof or any other party, become
     Class B Notes.

                    (v)     On May 16, 2006, all Notes Outstanding on such date
     shall thereupon, without action of the Holder thereof or any other party,
     become Class A Notes.

            (c)     Upon the occurrence of any transaction or event that results
in the change of a Note from one Class to another, the Trustee is hereby
authorized and empowered to make and to cause to be made, all physical or
book-entry transfers required to record and effect the applicable change.

     Section 2.2    Maturity. The Stated Maturity of the Notes will be
November 15, 2007; provided, that upon the occurrence of a Required Acceleration
Event, the maturity of the Notes will be accelerated to the date that is six
months after the Underlying Warrant Early Expiration Date.

     Section 2.3    FORM AND PAYMENT.

            (a)     The Notes may be issued in the form of, and evidenced by,
definitive certificates registered in the name of the Holder or Global Notes
registered in the name of the Depositary, as determined by the Company from time
to time.

            (b)     The principal of and the interest on the Notes shall be
payable at the office or agency of the Company maintained for that purpose in
accordance with Section 10.2 of the Base Indenture; provided, however, that
payments of principal or interest may be made at the option of the Company by
check mailed to the registered Holder at such address as shall appear in the
Security Register or by wire transfer to an account appropriately designated by
the Holder entitled thereto.

                                       -6-

<PAGE>

     Section 2.4    GLOBAL NOTES.

            (a)     The Depository Trust Company shall serve as the initial
Depositary for any Global Notes, if and when issued.

            (b)     Unless and until it is exchanged for definitive Notes in
registered form in accordance with Section 3.5 of the Base Indenture or at the
option of the Company, the Global Notes may be transferred, in whole but not in
part, only to another nominee of the Depositary, or to a successor Depositary
selected or approved by the Company or to a nominee of such successor
Depositary.

     Section 2.5    INTEREST AND INTEREST RATE RESET.

            (a)     Each Note will bear interest from and including May 15, 2002
or from and including the most recent Interest Payment Date through which
interest has been paid or duly provided for, as the case may be, initially at
the rate of 3.00% per annum, which rate shall be subject to adjustment pursuant
to Section 2.5(b) (such interest rate, as adjusted, the "Interest Rate"), until
the principal thereof is paid or made available for payment, in each case
payable semi-annually in arrears on each Interest Payment Date (but excluding
such Interest Payment Date from the calculation of interest), commencing
November 15, 2002; provided that any principal and installment of interest that
is overdue shall bear interest (to the extent that payment of such interest is
enforceable under applicable law) at the Interest Rate from the dates such
amounts are due until they are paid or made available for payment, and such
interest shall be payable on demand.

            (b)     Upon the occurrence of a Successful Remarketing, the
Interest Rate on the Notes will be reset on the Remarketing Date to be the Reset
Rate.

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

            (d)     The Regular Record Date for interest payable on the Notes on
each Interest Payment Date shall be the close of business on the Business Day
next preceding each such Interest Payment Date. If some or all of the Notes are
in certificated form and are not in the form of a Global Note, the Company may
in its sole discretion change the Regular Record Date by providing notice
thereof to the Trustee no later than 30 days prior to the next Regular Record
Date that would otherwise occur; provided, however, that the Regular Record Date
will in no event be earlier than one Business Day prior to the applicable
Interest Payment Date.

                                       -7-

<PAGE>

            (e)     Any amounts payable on any Notes that are not timely paid
will thereupon, and without any act on the part of any Person, cease to be
payable to the Person in whose name such Notes are registered on the relevant
Regular Record Date, and such defaulted payment will instead be due and payable
to the Person in whose name such Notes are registered on the Special Record Date
or any other date determined in accordance with the Indenture.

            (f)     The Notes do not have the benefit of any sinking fund
obligation.

                                    ARTICLE 3
                                  FORM OF NOTE

     Section 3.1    Form of Note. The Notes and the Trustee's Certificate of
Authentication to be endorsed thereon are to be substantially in the following
forms:

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

   [*2 IF THE NOTE IS A GLOBAL NOTE ISSUED TO DTC, INSERT: Unless this
   certificate is presented by an authorized representative of The Depository
   Trust Company, a New York corporation ("DTC"), to Issuer or its agent for
   registration of transfer, exchange or payment, and any certificate issued is
   registered in the name of Cede & Co. or in such other name as is requested by
   an authorized representative of DTC (and any payment is made to Cede & Co. or
   to such other entity as is requested by an authorized representative of DTC),
   ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
   PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has
   an interest herein.]

   [*3 IF THE NOTE IS A RESTRICTED NOTE, INSERT: THIS NOTE HAS NOT BEEN
   REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
   ACT"), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
   REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS
   NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE
   EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
   RULE 144A THEREUNDER.

   THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
   (A) (1) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED
   INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT
   ACQUIRING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
   BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A (IF AVAILABLE),
   (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
   PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (3) TO AN INSTITUTIONAL

                                       -8-

<PAGE>

   INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1),
   (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN
   EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE) OR (4)
   PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND
   (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE
   UNITED STATES AND OTHER JURISDICTIONS.]

   [*4 IF THE NOTE IS A DEFINITIVE NOTE THAT IS A RESTRICTED NOTE, INSERT: IN
   CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR SUCH
   OPINIONS OF COUNSEL, CERTIFICATES AND/OR OTHER INFORMATION AS IT MAY
   REASONABLY REQUIRE IN FORM REASONABLY SATISFACTORY TO IT AS PROVIDED FOR IN
   THE INDENTURE TO CONFIRM THAT THE TRANSFER COMPLIED WITH THE FOREGOING
   RESTRICTIONS AS PROVIDED FOR IN THE INDENTURE."]

                             BERKSHIRE HATHAWAY INC.

                  3.0% Senior Notes due 2007, Class [A, B or C]

                                                                [CUSIP No:_____]

No. ______                                                            $ _______

     BERKSHIRE HATHAWAY INC., a corporation duly organized and existing under
the laws of the State of Delaware (herein called the "Company", which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to [________], or registered assigns, the
principal sum of [________] Dollars [If the Note is a Global Note, add: , as
revised by the Schedule of Increases and Decreases in Global Note attached
hereto] on November 15, 2007, and to pay interest thereon from and including May
15, 2002 or from and including the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually on May 15 and
November 15 in each year, commencing November 15, 2002, at the rate of 3.00% per
annum (as adjusted, if at all, pursuant to such Indenture, the "Interest Rate"),
until the principal hereof is paid or made available for payment; provided that
any principal, and any such installment of interest, which is overdue shall bear
interest at the Interest Rate (to the extent that the payment of such interest
shall be legally enforceable), from the dates such amounts are due until they
are paid or made available for payment, and such interest shall be payable on
demand; and provided, further, that if there has been a Successful Remarketing,
the Interest Rate will be equal to the Reset Rate. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Note (or
one or more Predecessor Securities) is registered at the close of business on
the Regular Record Date for such interest. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this
Note (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Notes of this series may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in such Indenture.

     Payment of the principal of and interest on this Note will be made at the
office or agency of the Company maintained for that purpose in the Borough of
Manhattan, City of New York,

                                       -9-

<PAGE>

New York, in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debt;
provided, however, that at the option of the Company payments of principal or
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register.

     Each Holder, by its acceptance of a Note, consents and agrees to the terms
of (i) the Pledge Agreement, dated as of May 28, 2002 by and among the Company,
The Bank of New York, as Collateral Agent and The Bank of New York, as SQUARZ
Agent and (ii) the SQUARZ Agreement, dated as of May 28, 2002 by and between the
Company and the Bank of New York as SQUARZ Agent, as the same may be in effect
or may be amended from time to time in writing by the parties thereto in
accordance with its terms, and authorizes and directs the SQUARZ Agent as agent
for such Holder to enter into the Pledge Agreement and to perform its
obligations and exercise its rights thereunder in accordance therewith.

     The Holder of this Note has certain rights to require the Company to
repurchase this Note [if the Note is a Class B or Class C Note insert: on May 15
_____, and every May 15 thereafter until May 15, 2006, for the outstanding
principal amount plus accrued but unpaid interest; or] upon a Failed
Remarketing.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

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

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                 BERKSHIRE HATHAWAY INC.

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

     Attest:

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

                          CERTIFICATE OF AUTHENTICATION

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

                                                   THE BANK OF NEW YORK,
                                                   as Trustee,

                                      -10-

<PAGE>

     Dated:                                         By:
           -----------------                           -------------------------
                                                    Authorized Signatory

                            [FORM OF REVERSE OF NOTE]

     This Note is one of a duly authorized series of notes of the Company
(herein called the "Securities"), issued and to be issued in one or more series
under an Indenture, dated as of May 28, 2002 (herein called the "Base
Indenture", and as supplemented by the Officers' Certificate, dated as of May
28, 2002, herein, together with the Base Indenture, called the "Indenture"),
between the Company and The Bank of New York, as Trustee (herein called the
"Trustee", which term includes any successor trustee under the Indenture), and
reference is hereby made to the Indenture for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Notes and of the terms upon which the Notes
are, and are to be, authenticated and delivered. This Note is one of the series
of Securities designated on the face hereof limited in aggregate principal
amount to not more than $500,000,000.

     The Notes do not have the benefit of any sinking fund obligation.

     The Indenture contains provisions for defeasance at any time of the entire
Indebtedness of this Note or of certain restrictive covenants and Events of
Default with respect to this Note, in each case upon compliance with certain
conditions set forth in the Indenture.

     If an Event of Default with respect to the Notes 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 Indenture.

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

     As provided in and subject to the provisions of the Indenture, the Holder
of this Note shall not have the right to institute any proceeding with respect
to the Indenture or for the appointment of a receiver or trustee or for any
other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Notes, the Holders of not less than 25% in principal amount of the Notes at the
time Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the
Trustee indemnity or security reasonably satisfactory to it, and the Trustee
shall not have received from the Holders of a majority in principal amount of
Notes at the time Outstanding a direction inconsistent with such request, and

                                      -11-

<PAGE>

shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and offer of indemnity. The foregoing shall not apply to
any suit instituted by the Holder of this Note for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the
respective due dates expressed herein.

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

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note is registrable in the Security Register, upon
surrender of this Note for registration of transfer at the office or agency of
the Company in any place where the principal of and any premium and interest on
this Note 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 its attorney duly authorized in writing, and
thereupon one or more new Notes and of like tenor, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Indenture and this Note are governed by the laws of the State of New
York, without regard to conflicts of laws provisions thereof.

     The Notes are issuable in registered form without coupons in denominations
of $10,000 and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Notes are exchangeable for a
like aggregate principal amount of Notes and of like tenor of a different
authorized denomination, as requested by the Holder 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
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

     [If Note is a Global Note, insert - This Note is a Global Note and is
subject to the provisions of the Indenture relating to Global Notes, including
the limitations in Section 3.5 of the Base Indenture on transfers and exchanges
of Global Notes.]

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

                                      -12-

<PAGE>

                                   ASSIGNMENT

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

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

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

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

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

     ---------------------------------------------------------------------
                  (Insert address and zip code of assignee)

and irrevocably appoint agent to transfer this Note on the Security Register.The
agent may substitute another to act for him or her.

     Dated:                       Signature:

                               Signature Guarantee:

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

     Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Security Registrar, which requirements include
membership or participation in the Security Transfer Agent Medallion Program
("STAMP") or such other "signature guarantee program" as may be determined by
the Security Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

     If Note is a Global Note, insert the following:

                                      -13-

<PAGE>

                SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

    The following increases or decreases in this Global Note have been made:

<TABLE>
<CAPTION>
                                                              Principal amount of        Signature of
             Amount of decrease in   Amount of increase in    this Note following    authorized signatory
              principal amount of     principal amount of      such decrease or         of Trustee or
   Date            this Note               this Note               increase            Custodial Agent
-----------------------------------------------------------------------------------------------------------
   <S>       <C>                     <C>                      <C>                    <C>

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

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

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

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

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

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

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

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

-----------------------------------------------------------------------------------------------------------
</TABLE>

                                    ARTICLE 4
                                ISSUANCE OF NOTES

     Section 4.1    General. One or more certificates evidencing Notes may be
executed by the Company and delivered to the Trustee for authentication, and the
Trustee shall thereupon authenticate and deliver such certificated Notes in
accordance with a Company Order; provided, however, that the aggregate principal
amount of Notes so executed, delivered, and authenticated and Outstanding at any
time shall not exceed the sum of the aggregate principal amount of Notes stated
in Section 4.2 and Section 4.3.

     Section 4.2    Original Issue of Notes. The first date of issuance of Notes
shall be May 28, 2002 (the "Original Issue Date"). No more than $400,000,000.00
in aggregate principal amount of Notes shall be issued on the Original Issue
Date.

     Section 4.3    Subsequent Issuances of Notes. If the Over-Allotment Option
is exercised, in whole or in part, on or after the Original Issue Date but on or
before June 21, 2002, one or more additional certificates evidencing Notes shall
be issued in the principal amount required therewith, which, in any case shall
not exceed $100,000,000.00 in aggregate principal amount.

                                    ARTICLE 5
                              REMARKETING AND RESET

     Section 5.1    PROCESS.

            (a)     Following the occurrence of a Remarketing Event, the
Remarketing Agent will attempt to sell all Notes (other than the Notes held by
Holders that have elected, pursuant to

                                      -14-

<PAGE>

the SQUARZ Agreement, not to permit the Notes held by them to be the subject of
the Remarketing) to purchasers pursuant to the procedures set forth in the
SQUARZ Agreement.

            (b)     Upon a Successful Remarketing, all Holders of Notes (other
than Holders that have elected, pursuant to the SQUARZ Agreement, not to allow
the Notes held by them to be the subject of the Remarketing) will sell their
Notes to the Persons, at the time, and in the manner directed by the Remarketing
Agent.

     Section 5.2    Reset Rate. The Reset Rate on the Notes shall be determined
by the Remarketing Agent as provided in the SQUARZ Agreement. Upon receipt by
the Trustee of the Reset Rate, the Trustee will promptly notify the Holders of
the Reset Rate.

                                    ARTICLE 6
                                   PUT RIGHTS

     Section 6.1    Put Rights. Subject to the other provisions of this
Article 6:

            (a)     a Holder of a Class B Note shall have the right to require
the Company to repurchase such Note on any Scheduled Repurchase Date;

            (b)     a Holder of a Class C Note shall have the right to require
the Company to repurchase such Note on any Scheduled Repurchase Date other than
the Scheduled Repurchase Date first occurring after a Note has become designated
a Class C Note;

            (c)     a holder of a SQUARZ shall have the right to require the
Company to repurchase the Class A Note constituting a part of such SQUARZ on any
Scheduled Repurchase Date, provided, that such holder simultaneously surrenders
and cancels in accordance with the SQUARZ Agreement the Underlying Warrant also
comprising part of such SQUARZ;

            (d)     if a Failed Remarketing has occurred, a Holder of any Note
shall have the right to require the Company to repurchase such Note on the
Failed Remarketing Repurchase Date; and

            (e)     if a Failed Remarketing has occurred, a holder of a SQUARZ
shall have the right to require the Company to repurchase the Class A Note
constituting a part of such SQUARZ on the Failed Remarketing Repurchase Date;

in each case, in consideration of the payment by the Company of an amount equal
to the principal amount of such Note plus accrued and unpaid interest to, but
excluding, the Repurchase Date (the "Repurchase Price"); provided, that any
repurchase of Notes shall only be for whole Notes (i.e., denominations of
$10,000 principal amount and integral multiples thereof).

     Section 6.2    PUT MECHANICS.

            (a)     In order to exercise a right to cause the Company to
repurchase a Note pursuant to Section 6.1 (a "Put"), the Holder of the
applicable Note or the holder of the applicable SQUARZ shall deliver a Put
Exercise Notice to the Trustee (with a copy to the SQUARZ Agent and the
Collateral Agent, in the case of a holder of SQUARZ), along with the

                                      -15-

<PAGE>

certificate evidencing such Note (if in definitive form) or by other transfer
of such Note to the Trustee:

                    (i)     in the event of a Put pursuant to Sections 6.1(a)
     and 6.1(c), during the period beginning after the opening of business on
     the day that is 20 Business Days prior to the relevant Scheduled Repurchase
     Date until 5:00 p.m. New York City time on the third Business Day prior to
     the relevant Scheduled Repurchase Date; and

                    (ii)    in the event of a Put pursuant to Sections 6.1(d)
     and 6.1(e), during the period beginning on the Remarketing Date for such
     Failed Remarketing until 5:00 p.m. New York City time on the Business Day
     immediately preceding to the Failed Remarketing Repurchase Date;

provided, that any such Put Exercise Notice may be withdrawn by delivery of
notice of withdrawal to the Trustee (with a copy to the SQUARZ Agent and the
Collateral Agent, in the case of a holder of SQUARZ) prior to 5:00 p.m. New York
City time on the Business Day immediately preceding the relevant Repurchase Date
(and any Notes delivered to the Trustee shall be promptly returned to such
Holder).

            (b)     The Trustee shall notify the Company as soon as possible
after 5:00 p.m. New York City time on the Business Day immediately preceding a
Repurchase Date, but in no case later than 9:00 p.m. New York City time on the
Business Day immediately preceding a Repurchase Date, of the number of Notes
that have been properly Put and not withdrawn by the holders thereof, and the
aggregate Repurchase Price required to be paid therefor. Thereafter, subject to
Section 6.2(c), the Company shall make available to the Trustee on the
Repurchase Date, the aggregate Repurchase Price for the Notes properly Put, in
immediately available funds. The Trustee shall promptly distribute such amounts
to the Holders of the Notes properly Put and shall return any Notes to Holders
that did not properly exercise their Put.

            (c)     In the event of an exercise of a Put by a holder of SQUARZ,
the Repurchase Price for the Note previously comprising part of the SQUARZ shall
be paid by the Company to the Collateral Agent for the benefit of the Company;
provided, that the Collateral Agent shall be instructed by the Company to (i)
pay to the SQUARZ Agent for the account of the Company (X) in the event of a Put
exercised in connection with a Scheduled Repurchase Date, the amount of the
Underlying Warrant Installment Payment that was due and payable on such
Scheduled Repurchase Date or (Y) in the event of a Put exercised in connection
with a Failed Remarketing Repurchase Date, the amount of Underlying Warrant
Installment Payment accrued and unpaid to but excluding the Failed Remarketing
Repurchase Date; and (ii) pay the amounts remaining from the Repurchase Price to
the holder of such SQUARZ.

            (d)     On the Repurchase Date (subject to receipt of payment of the
aggregate Repurchase Price by the Trustee), all Notes that have been Put shall
be cancelled by the Trustee and shall cease to be Outstanding.

            (e)     The Trustee shall adopt reasonable procedures, forms and
requirements, acceptable to the Company, in connection with the exercise of Put
rights by the Holders of Notes on any Repurchase Date, including, but not
limited to, requirements for physical delivery or

                                      -16-

<PAGE>

book-entry transfer of Notes, procedures for guarantees of late delivery, and
requirements to obtain all information necessary to determine the tax
withholding obligations of the Company or the Trustee, if any.

     Section 6.3    Termination of Put Rights. Upon a Successful Remarketing all
Put rights of Holders of the Notes shall terminate.

                                    ARTICLE 7
                              TRANSFER AND EXCHANGE

     Section 7.1    TRANSFER AND EXCHANGE.

            (a)     Any transfer of Restricted Notes shall be made only upon
receipt by the Trustee and the Company of such opinions of counsel, certificates
and/or other information reasonably required by and satisfactory to each of them
in order to ensure compliance with the Securities Act or in accordance with
paragraph (b) of this Section.

            (b)     Upon the transfer, exchange or replacement of Notes not
bearing a Private Placement Legend, the Trustee shall exchange such Notes for
Notes that do not bear a Private Placement Legend. Upon the transfer, exchange
or replacement of Notes bearing a Private Placement Legend, the Trustee shall
deliver only Notes that bear a Private Placement Legend unless:

                    (i)     such Notes are transferred pursuant to a
     Registration Statement;

                    (ii)    such Notes are transferred pursuant to Rule 144 upon
     delivery to the Security Registrar of a certificate of the transferor in
     the form described in Section 7.1(d) and an Opinion of Counsel reasonably
     satisfactory to the Trustee and the Company;

                    (iii)   such Notes are transferred, replaced or exchanged
     after the Resale Restriction Termination Date therefor; or

                    (iv)    in connection with such transfer, exchange or
     replacement the Trustee and the Company shall have received an Opinion of
     Counsel and other evidence reasonably satisfactory to each of them to the
     effect that neither such Private Placement Legend nor the related
     restrictions on transfer are required in order to maintain compliance with
     the provisions of the Securities Act.

The Private Placement Legend on any Note shall be removed at the request of the
Holder on or after the Resale Restriction Termination Date therefor. The Company
shall deliver to the Trustee an Officers' Certificate promptly upon
effectiveness, withdrawal or suspension of any Registration Statement.

            (c)     In the case of a Global Note, transfers of beneficial
interests therein through participants of the Depositary must be effected in
accordance with applicable law and the rules and procedures of the Depositary,
but is not subject to any procedure required by these Note Terms). The Holder of
a Global Note may exchange an interest therein for an equivalent

                                      -17-

<PAGE>

interest in a Global Note not bearing a Private Placement Legend upon transfer
of such interest pursuant to any of clauses (i) through (iv) of this Section
7.1(b)

            (d)     The certificate of a transferor required by Section
7.1(b)(ii) shall be addressed to the Trustee at the Corporate Trust Office, duly
executed and delivered by the Holder and shall state the following:

                    (i)     Reference is hereby made to the Indenture, dated as
     of May 28, 2002 by and between the Company and The Bank of New York, as
     Trustee, and the Officers' Certificate dated as of the same date, and
     related thereto (together, the "Notes Indenture") relating to the 3% Senior
     Notes Due 2007 of Berkshire Hathaway Inc. Capitalized terms used but not
     defined herein shall have the meanings given them in the Notes Indenture.

                    (ii)    In connection with our proposed sale of $________
     aggregate principal amount of the Notes [in the case of a transfer of an
     interest in a Rule 144A Global Certificate: , which represent an interest
     in a Global Certificate originally offered and sold to QIBs in reliance on
     Rule 144A and held by] the undersigned, we confirm that such sale has been
     effected pursuant to and in accordance with Rule 144 under the Securities
     Act.

                    (iii)   The Trustee and the Company are entitled to rely
     upon this letter and are irrevocably authorized to produce this letter or a
     copy hereof to any interested party in any administrative or legal
     proceedings or official inquiry with respect to the matters covered hereby.

                                    ARTICLE 8
                                  MISCELLANEOUS

     Section 8.1    Governing Law. THIS EXHIBIT A AND EACH NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

                                      -18-<PAGE>

                                                                     EXHIBIT 4.4

                             BERKSHIRE HATHAWAY INC.

                              THE BANK OF NEW YORK

                    as Collateral Agent, Custodial Agent and

                             Securities Intermediary

                                       AND

                              THE BANK OF NEW YORK

                                 as SQUARZ Agent

                              AMENDED AND RESTATED
                                PLEDGE AGREEMENT

                      Originally dated as of May 28, 2002,
                   Amended and Restated as of August 13, 2002

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                 Page
                                                                                 ----
<S>                                                                                <C>
ARTICLE I DEFINITIONS.............................................................  2

  SECTION 1.1   Definitions.......................................................  2

ARTICLE II PLEDGE; CONTROL AND PERFECTION.........................................  7

  SECTION 2.1   The Pledge........................................................  7
  SECTION 2.2   Control and Perfection............................................  8

ARTICLE III PAYMENTS ON PLEDGED COLLATERAL........................................ 10

  SECTION 3.1   Payments.......................................................... 10
  SECTION 3.2   Application of Payments........................................... 10

ARTICLE IV SUBSTITUTION, RELEASE, REPLEDGE AND SETTLEMENT OF NOTES................ 11

  SECTION 4.1   Collateral Substitution and the Creation of Stripped SQUARZ....... 11
  SECTION 4.2   Collateral Substitution and the Re-Creation of SQUARZ............. 12
  SECTION 4.3   Bankruptcy........................................................ 13
  SECTION 4.4   Early Settlement; Merger Early Settlement; Cash Settlement........ 14
  SECTION 4.5   Cancellation, Expiration, Early Expiration or Exercise............ 14
  SECTION 4.6   Remarketing; Application of Proceeds; Settlement.................. 17

ARTICLE V VOTING RIGHTS-- NOTES................................................... 17

  SECTION 5.1   Exercise by SQUARZ Agent.......................................... 17

ARTICLE VI RIGHTS AND REMEDIES.................................................... 18

  SECTION 6.1   Rights and Remedies of the Collateral Agent....................... 18
  SECTION 6.2   Substitutions..................................................... 19

ARTICLE VII REPRESENTATIONS AND WARRANTIES; COVENANTS............................. 19

  SECTION 7.1   Representations and Warranties.................................... 19
  SECTION 7.2   Covenants......................................................... 20

ARTICLE VIII THE COLLATERAL AGENT................................................. 21

  SECTION 8.1   Appointment, Powers and Immunities................................ 21
  SECTION 8.2   Instructions of the Company....................................... 22
  SECTION 8.3   Reliance.......................................................... 22
  SECTION 8.4   Rights in Other Capacities........................................ 23
  SECTION 8.5   Non-Reliance on Collateral Agent.................................. 23
  SECTION 8.6   Compensation and Indemnity........................................ 23
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                                <C>
  SECTION 8.7   Failure to Act.................................................... 24
  SECTION 8.8   Resignation....................................................... 25
  SECTION 8.9   Right to Appoint Agent or Advisor................................. 26
  SECTION 8.10  Survival.......................................................... 26
  SECTION 8.11  Exculpation....................................................... 26

ARTICLE IX AMENDMENT.............................................................. 26

  SECTION 9.1   Amendment Without Consent of Holders.............................. 26
  SECTION 9.2   Amendment with Consent of Holders................................. 27
  SECTION 9.3   Execution of Amendments........................................... 28
  SECTION 9.4   Effect of Amendments.............................................. 28
  SECTION 9.5   Reference to Amendments........................................... 28

ARTICLE X MISCELLANEOUS........................................................... 28

  SECTION 10.1   No Waiver........................................................ 28
  SECTION 10.2   GOVERNING LAW.................................................... 29
  SECTION 10.3   Notices.......................................................... 29
  SECTION 10.4   Successors and Assigns........................................... 29
  SECTION 10.5   Counterparts..................................................... 29
  SECTION 10.6   Severability..................................................... 30
  SECTION 10.7   Expenses, Etc.................................................... 30
  SECTION 10.8   Security Interest Absolute....................................... 30
  SECTION 10.9   Waiver of Jury Trial............................................. 31

EXHIBIT A  Instruction from SQUARZ Agent to Collateral Agent

EXHIBIT B  Instruction to SQUARZ Agent
</TABLE>

                                       ii

<PAGE>

                      AMENDED AND RESTATED PLEDGE AGREEMENT

     AMENDED AND RESTATED PLEDGE AGREEMENT, originally dated as of May 28, 2002
and amended and restated as of August 13, 2002 (this "Agreement"), among
Berkshire Hathaway Inc., a Delaware corporation (the "Company"), and The Bank of
New York, a New York banking corporation, not individually but solely as (i)
collateral agent (in such capacity, together with its successors in such
capacity, the "Collateral Agent"), (ii) custodial agent (in such capacity,
together with its successors in such capacity, the "Custodial Agent"), and (iii)
"securities intermediary" as defined in Section 8-102(a)(14)(B) of the Code (as
defined herein) (in such capacity, together with its successors in such
capacity, the "Securities Intermediary"), and The Bank of New York, a New York
banking corporation, not individually but solely as SQUARZ Agent and as
attorney-in-fact for the Holders (as defined below) of the Units (as defined
below) (in such capacity, together with its successors in such capacity, the
"SQUARZ Agent") under the SQUARZ Agreement (as defined below).

                                    RECITALS

     WHEREAS, the Company and the SQUARZ Agent are parties to the SQUARZ
Agreement, dated as of the date hereof (as modified and supplemented and in
effect from time to time, the "SQUARZ Agreement") pursuant to which SQUARZ have
been issued;

     WHEREAS, pursuant to the SQUARZ Agreement each SQUARZ will be comprised of
(a) a warrant to purchase, on or prior to May 15, 2007 (subject to early
expiration as described in the SQUARZ Agreement), at the Underlying Warrant
holder's election, either, 0.1116 shares (subject to adjustment pursuant to
Section 5.8 of the SQUARZ Agreement) of Berkshire Class A Common Stock or 3.3480
shares (subject to adjustment pursuant to Section 5.8 of the SQUARZ Agreement)
of Berkshire Class B Common Stock, (b) a 3.0% Senior Note of the Company due
November 15, 2007 (subject to its earlier acceleration in accordance with the
terms of the Indenture), having a principal amount of $10,000 (a "Note"), and
(c) an Initial Pledged Treasuries Interest.

     WHEREAS, at any time prior to two Business Days prior to the first to occur
of the Underlying Warrant Maturity Date or the Underlying Warrant Early
Expiration Date and in accordance with the terms of the SQUARZ Agreement, a
Holder of a SQUARZ may separate a Note from the related Underlying Warrant and
Initial Pledged Treasuries Interest by substituting for such Note, Substitute
Pledged Treasuries. Upon such separation, the SQUARZ will become a Stripped
SQUARZ and the Pledged Note relating to such SQUARZ will be released from the
Pledge. Each Stripped SQUARZ will be comprised of (a) an Underlying Warrant, (b)
an Initial Pledged Treasuries Interest and (c) a Substitute Pledged Treasuries
Interest.

     WHEREAS, pursuant to the terms of the SQUARZ Agreement, the SQUARZ Agent,
on behalf of itself and all Holders has agreed to execute and deliver this
Agreement on behalf of itself and all Holders and to grant the pledge provided
hereby of the Notes, the Initial Pledged Treasuries and any Substitute Pledged
Treasuries to secure the obligations of

                                        1

<PAGE>

each Holder under the SQUARZ Agreement, as provided herein and subject to the
terms hereof.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company, the Collateral Agent,
the Securities Intermediary, the Custodial Agent, and the SQUARZ Agent, on its
own behalf and on behalf of all Holders, agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     SECTION 1.1    Definitions.

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

     (a)  capitalized terms used but not defined herein are used as defined in
the SQUARZ Agreement;

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

     (c)  the words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any particular
Article, Section or other subdivision.

     (d)  the following terms have the meanings given to them as set forth
below:

     "Act" shall have the meaning given such term in the SQUARZ Agreement.

     "Agreement" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more agreements supplemental
hereto entered into pursuant to the applicable provisions hereof.

     "Bankruptcy Event" shall have the meaning given such term in the SQUARZ
Agreement.

     "Bankruptcy Code" means the United States Bankruptcy Code (Title 11 U.S.C.)
as amended.

     "Berkshire Class A Common Stock" shall have the meaning given such term in
the SQUARZ Agreement.

     "Berkshire Class B Common Stock" shall have the meaning given such term in
the SQUARZ Agreement.

                                        2

<PAGE>

     "Board Resolution" shall have the meaning given such term in the SQUARZ
Agreement.

     "Book-Entry Interest" shall have the meaning given such term in the SQUARZ
Agreement.

     "Business Day" shall have the meaning given such term in the SQUARZ
Agreement.

     "Certificate" shall have the meaning given such term in the SQUARZ
Agreement.

     "Clearing Agency" shall have the meaning given such term in the SQUARZ
Agreement.

     "Code" has the meaning specified in Section 6.1 hereof.

     "Collateral" has the meaning specified in Section 2.1 hereof.

     "Collateral Accounts" means, collectively, the IPT Account, the SPT Account
and the Pledged Notes Account.

     "Collateral Agent" has the meaning specified in the first paragraph of this
Agreement.

     "Collateral Substitution" shall have the meaning given such term in the
SQUARZ Agreement.

     "Company" means the Person named as the "Company" in the first paragraph of
this Agreement until a successor shall have become such pursuant to the
applicable provisions of the SQUARZ Agreement, and thereafter "Company" shall
mean such successor.

     "Custodial Agent" has the meaning specified in the first paragraph of this
Agreement.

     "Failed Remarketing" shall have the meaning given such term in the SQUARZ
Agreement.

     "Global Note" shall have the meaning given such term in the Indenture.

     "Holder" means the Person in whose name a Unit is registered in the SQUARZ
Register or the Stripped SQUARZ Register, as applicable.

     "Indenture" shall have the meaning given such term in the SQUARZ Agreement.

     "Indenture Trustee" shall have the meaning given such term in the SQUARZ
Agreement.

     "Initial Pledged Treasuries" shall have the meaning given such term in the
SQUARZ Agreement.

                                        3

<PAGE>

     "Initial Pledged Treasuries Interest" shall have the meaning given such
term in the SQUARZ Agreement.

     "Intermediary" means "securities intermediary" as defined in Section
8-102(a)(14)(B) of the Code.

     "IPT Account" means that certain account maintained at The Bank of New York
in the name "The Bank of New York, a New York banking corporation, as Collateral
Agent, for the benefit of Berkshire Hathaway Inc., as pledgee" and any successor
account. The IPT Account will contain only the Initial Pledged Treasuries.

     "Note" shall have the meaning given such term in the recitals of this
Agreement.

     "Outstanding Units" shall have the meaning given such term in the SQUARZ
Agreement.

     "Person" shall have the meaning given such term in the SQUARZ Agreement.

     "Pledge" means the pledge described in Section 2.1 hereof, and "Pledged"
means made subject to the Pledge.

     "Pledged Notes" means the Notes delivered to the Collateral Agent as of
this date or hereafter by the SQUARZ Agent and Pledged to the Collateral Agent
pursuant to Section 2.1 hereof, as well as any and all Notes delivered from time
to time to the Collateral Agent in substitution for the Pledged Notes or in a
Collateral Substitution. Notes that have been released from the Pledge pursuant
to Section 4.l cease, upon such release, to be Pledged Notes unless and until
such Notes are re-Pledged as set forth in Section 4.2, in which case such Notes
shall again be Pledged Notes. Recourse on the Pledged Notes is limited as set
forth in Section 6.1(b) hereof.

     "Pledged Notes Account" means that certain account maintained at The Bank
of New York in the name "The Bank of New York, a New York banking corporation,
as Collateral Agent, for the benefit of Berkshire Hathaway Inc., as pledgee,
subject to the terms of that certain Pledge Agreement dated May 28, 2002, by and
among, pledgee, Collateral Agent and certain others" and any successor account.
The Pledged Notes Account will contain only the Pledged Notes.

     "Proceeds" means all interest, dividends, cash, instruments, securities,
financial assets (as defined in Section 8-102(a)(9) of the Code) and other
property from time to time received, receivable or otherwise distributed upon
the sale, exchange, collection or disposition of the Collateral or any proceeds
thereof.

     "Put" shall have the meaning given such term in the SQUARZ Agreement.

     "Remarketing" shall have the meaning given such term in the SQUARZ
Agreement.

                                        4

<PAGE>

     "Remarketing Agent" shall have the meaning given such term in the SQUARZ
Agreement.

     "Required Acceleration Event" shall have the meaning given such term in the
SQUARZ Agreement.

     "Requisite Amount" shall have the meaning given such term in the SQUARZ
Agreement.

     "Retained Treasuries" has the meaning specified in Section 4.5(e) hereof.

     "Securities Intermediary" has the meaning specified in the first paragraph
of this Agreement.

     "Security Entitlement" has the meaning set forth in Section 8-102(a)(17) of
the Code.

     "Separate Notes" shall have the meaning given such term in the SQUARZ
Agreement.

     "SPT Account" means that certain account maintained at The Bank of New York
in the name "The Bank of New York, a New York banking corporation, as Collateral
Agent, for the benefit of Berkshire Hathaway Inc., as pledgee" and any successor
account. The SPT Account will contain only the Substitute Pledged Treasuries.

     "SQUARZ" shall have the meaning given such term in the SQUARZ Agreement.

     "SQUARZ Agent" has the meaning specified in the first paragraph of this
Agreement.

     "SQUARZ Agreement" has the meaning specified in the recitals of this
Agreement.

     "SQUARZ Certificate" shall have the meaning given such term in the SQUARZ
Agreement.

     "Stripped SQUARZ" shall have the meaning given such term in the SQUARZ
Agreement.

     "Stripped SQUARZ Certificate" shall have the meaning given such term in the
SQUARZ Agreement.

     "Substitute Pledged Treasuries" shall have the meaning given such term in
the SQUARZ Agreement.

     "Substitute Pledged Treasuries Interest" shall have the meaning given such
term in the SQUARZ Agreement.

     "Successful Remarketing" shall have the meaning given such term in the
SQUARZ Agreement.

                                        5

<PAGE>

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

     "Transfer" means, as applicable:

          (i)       in the case of Collateral consisting of securities which
     cannot be delivered by book-entry or which the parties agree are to be
     delivered in physical form, delivery in appropriate physical form to the
     recipient accompanied by any duly executed instruments of transfer,
     assignments in blank, transfer tax stamps and any other documents necessary
     to constitute a legally valid transfer to the recipient;

          (ii)      in the case of Collateral consisting of securities
     maintained in book-entry form by causing a "securities intermediary" (as
     defined in Section 8-102(a)(14) of the Code) to (a) credit a "security
     entitlement" (as defined in Section 8-102(a)(17) of the Code) with respect
     to such securities to a "securities account" (as defined in Section
     8-501(a) of the Code) maintained by or on behalf of the recipient and (b)
     to issue a confirmation to the recipient with respect to such credit. In
     the case of Collateral to be delivered to the Collateral Agent, the
     securities intermediary shall be the Securities Intermediary and the
     securities account shall be one of the Collateral Accounts. In addition,
     any Transfer of Initial Pledged Treasuries or Substitute Pledged Treasuries
     hereunder shall be made in accordance with the TRADES Regulations and other
     applicable law.

     "Underlying Warrant" shall have the meaning given such term in the SQUARZ
Agreement.

     "Underlying Warrant Cancellation" shall have the meaning given such term in
the SQUARZ Agreement.

     "Underlying Warrant Cancellation Date" shall have the meaning given such
term in the SQUARZ Agreement.

     "Underlying Warrant Early Expiration Date" shall have the meaning given
such term in the SQUARZ Agreement.

     "Underlying Warrant Installment Payment" shall have the meaning given such
term in the SQUARZ Agreement.

     "Underlying Warrant Installment Payment Date" shall have the meaning given
such term in the SQUARZ Agreement.

     "Underlying Warrant Maturity Date" shall have the meaning given such term
in the SQUARZ Agreement.

     "Unit" shall have the meaning given such term in the SQUARZ Agreement.

                                        6

<PAGE>

                                   ARTICLE II

                         PLEDGE; CONTROL AND PERFECTION

     SECTION 2.1    The Pledge.

     (a)  The Holders, acting through the SQUARZ Agent as their
attorney-in-fact, and the SQUARZ Agent as such attorney-in-fact, hereby pledge
and grant to the Collateral Agent, and upon each Collateral Substitution pledge
and grant to the Collateral Agent, in each case for the benefit of the Company,
as collateral security for the performance when due by such Holders of their
obligations under the SQUARZ Agreement, including but not limited to the
obligation of such Holders to make Underlying Warrant Installment Payments as
set forth therein when and as the same are due, a security interest in all of
the right, title and interest of such Holders (except as limited by Section
6.1(b) hereof) in:

          (i)       (A) the Notes, (B) the Initial Pledged Treasuries, and (C)
     any Substitute Pledged Treasuries from time to time constituting a part of
     a Stripped SQUARZ, in each case that have been Transferred to or otherwise
     received by the Collateral Agent and not released by the Collateral Agent
     to such Holders under the provisions of this Agreement;

          (ii)      the Collateral Accounts and all securities, financial
     assets, security entitlements, cash and other property credited thereto and
     all Security Entitlements related thereto; and

          (iii)     all Proceeds of the foregoing (all of the foregoing,
     collectively, the "Collateral").

Subject to the Pledge and the provisions of Section 2.2 hereof, the Holders
shall have full beneficial ownership of the Collateral. For purposes of
perfecting the Pledge under applicable law, including, to the extent applicable,
the TRADES Regulations or the Uniform Commercial Code as adopted and in effect
in any applicable jurisdiction, the Collateral Agent, the Custodial Agent, and
the Securities Intermediary, as applicable, shall be the agent of the Company as
provided herein.

     (b)  Except (i) as may be required in order to release Pledged Notes or
Substitute Pledged Treasuries, as applicable, in connection with a Holder's
election to (A) convert a SQUARZ to a Stripped SQUARZ or (B) reconvert a
Stripped SQUARZ to a SQUARZ, or (ii) as otherwise required to release Pledged
Notes as specified herein, none of the Collateral Agent, the Custodial Agent or
the Securities Intermediary shall relinquish physical possession of any
certificate evidencing a Note or Transfer any interest in a Global Note prior to
the termination of this Agreement. If it becomes necessary for the Securities
Intermediary to relinquish physical possession of a Note or to Transfer any
interest in a Global Note in order to release a portion of the Pledged Notes
evidenced thereby from the Pledge, the Collateral Agent, the Company or the
SQUARZ Agent shall use its best efforts to obtain physical possession of a
replacement certificate evidencing any Pledged Notes registered to the

                                        7

<PAGE>

Securities Intermediary or endorsed in blank within fifteen days of the date the
Securities Intermediary relinquished possession. The Securities Intermediary
shall promptly notify the Company and the Collateral Agent of the Securities
Intermediary's failure to obtain possession of any such replacement certificate
as required hereby.

     SECTION 2.2    Control and Perfection.

     (a)  In connection with the Pledge granted in Section 2.1, and subject to
the other provisions of this Agreement, the Holders, acting through the SQUARZ
Agent as their attorney-in-fact, and the SQUARZ Agent as such attorney-in-fact,
hereby authorize and direct the Securities Intermediary (without the necessity
of obtaining the further consent of the SQUARZ Agent or any Holder), and the
Securities Intermediary agrees, to comply with and follow any instructions that
the Collateral Agent may deliver with respect to the IPT Account or the SPT
Account and to follow any instructions and entitlement orders (as defined in
Section 8-102(a)(8) of the Code) that the Collateral Agent may deliver with
respect to the Pledged Notes Account, or the Collateral credited thereto and any
Security Entitlements with respect to any thereof. If the Securities
Intermediary receives from a Holder or the SQUARZ Agent entitlement orders which
conflict with entitlement orders received from the Collateral Agent, the
Securities Intermediary shall follow the entitlement orders received from the
Collateral Agent. The Holders acting through the SQUARZ Agent, and the SQUARZ
Agent on behalf of such Holders, hereby further authorize and direct the
Collateral Agent, as agent of the Company, to itself issue to the Securities
Intermediary instructions and entitlement orders, and to otherwise take action
with respect to the Pledged Notes, the Collateral Accounts, the Collateral
credited thereto and any Security Entitlements with respect thereto, pursuant to
the terms and provisions hereof, all without the necessity of obtaining the
further consent of the SQUARZ Agent or any of the Holders. The Collateral Agent
shall be the agent of the Company and shall act only in accordance with the
terms hereof or as otherwise directed in writing by the Company. Without
limiting the generality of the foregoing, the Collateral Agent shall issue
entitlement orders to the Securities Intermediary as directed in writing by the
Company.

     (b)  The Securities Intermediary hereby confirms and agrees that:

          (i)       all securities or other property underlying any financial
     assets credited to the Collateral Accounts shall be registered in the name
     of the Securities Intermediary, or its nominee, endorsed to the Securities
     Intermediary, or its nominee, or in blank or credited to another Collateral
     Account maintained in the name of the Securities Intermediary and in no
     case will any financial asset credited to one of the Collateral Accounts be
     registered in the name of the SQUARZ Agent, the Collateral Agent, the
     Company or any Holder, payable to the order of, or specially endorsed to,
     the SQUARZ Agent, the Collateral Agent, the Company or any Holder except to
     the extent the foregoing have been specially endorsed to the Securities
     Intermediary or in blank;

          (ii)      when delivered to the Securities Intermediary pursuant to
     this Agreement, the Initial Pledged Treasuries will be promptly credited to
     the IPT

                                        8

<PAGE>

     Account, the Substitute Pledged Treasuries will be promptly credited to the
     SPT Account and the Pledged Notes will be promptly credited to the Pledged
     Notes Account;

          (iii)     the Collateral Accounts are accounts to which financial
     assets are or may be credited, and the Securities Intermediary shall,
     subject to the terms of this Agreement, treat the SQUARZ Agent as entitled
     to exercise the voting rights, if any, set forth in any financial asset
     credited to either of the Collateral Accounts;

          (iv)      the Securities Intermediary has not entered into, and until
     the termination of this Agreement will not enter into, any agreement with
     any other Person relating to the Collateral Accounts and/or any financial
     assets credited thereto pursuant to which it has agreed or will agree to
     comply with entitlement orders (as defined in Section 8-102(a)(8) of the
     Code) of such other Person; and

          (v)       the Securities Intermediary has not entered into, and until
     the termination of this Agreement will not enter into, any agreement with
     the Company, the Collateral Agent or the SQUARZ Agent purporting to limit
     or condition the obligation of the Securities Intermediary to comply with
     entitlement orders as set forth in this Section 2.2, except that neither
     the Collateral Agent nor the Company shall give, or shall have the right or
     power to give, entitlement orders purporting to seek recourse against the
     principal of the Pledged Notes deposited in the Pledged Notes Account, and
     the Securities Intermediary shall not comply with any such orders if given.

          (vi)      The Securities Intermediary hereby agrees that each item of
     property (whether investment property, financial asset, security,
     instrument or cash) credited to any Collateral Account shall be treated as
     a "financial asset" within the meaning of Section 8-102(a)(9) of the Code.

          (vii)     In the event of any conflict between this Agreement (or any
     portion thereof) and any other agreement now existing, the terms of this
     Agreement shall prevail, provided, however, that in the event of any
     conflict, ambiguity, inconsistency, or defect between this Agreement and
     the SQUARZ Agreement, the parties hereto and thereto will cooperate and
     endeavor in good faith to cure such matter in a manner that effectuates the
     Pledge under this Agreement consistent with the terms of the SQUARZ
     Agreement.

     (c)  The SQUARZ Agent hereby irrevocably constitutes and appoints the
Collateral Agent and the Company, with full power of substitution, as the SQUARZ
Agent's attorney-in-fact to take on behalf of, and in the name, place and stead
of, the SQUARZ Agent and the Holders any action necessary or desirable to
perfect and to keep perfected the security interest in the Collateral referred
to in Section 2.1. The grant of such power-of-attorney shall not be deemed to
require of the Collateral Agent or the Company any specific duties or
obligations not otherwise assumed by the Collateral Agent or the Company
hereunder. Notwithstanding the foregoing, in no event shall the Collateral Agent
or Securities Intermediary be responsible

                                        9

<PAGE>

for the preparation or filing of any financing or continuation statements in the
appropriate jurisdictions or responsible for maintenance or perfection of any
security interest hereunder.

                                   ARTICLE III

                         PAYMENTS ON PLEDGED COLLATERAL

     SECTION 3.1    Payments.

     (a)  So long as the Securities Intermediary is the registered owner of the
Pledged Notes, Initial Pledged Treasuries or Substitute Pledged Treasuries, it
shall receive all payments thereon and shall, unless instructed otherwise by the
Collateral Agent (which shall itself receive instructions from the Company), pay
all such amounts received by it on account of such Pledged Notes, Initial
Pledged Treasuries or Substitute Pledged Treasuries to the Collateral Agent. The
Collateral Agent will pay all amounts received by it to the SQUARZ Agent for
distribution in accordance with the terms of this Section 3.1. In connection
with each payment made by the Collateral Agent pursuant to this Section 3.1, the
Collateral Agent shall instruct the SQUARZ Agent (and the SQUARZ Agent shall
comply with such instructions) with regard to how such payment should be
distributed. Unless a provision of Article IV specifically provides otherwise,
if such payment consists of (i) interest on such Pledged Notes or the
semi-annual payment received with respect to the Initial Pledged Treasuries or
the Substitute Pledged Treasuries, then all such amounts shall be paid by the
SQUARZ Agent to the Company pursuant to the terms of the SQUARZ Agreement, (ii)
principal of any Pledged Notes, then all such amounts shall, in accordance with
the terms of the SQUARZ Agreement, be paid by the SQUARZ Agent to the respective
Holders of such Notes, or (iii) Proceeds received by the Collateral Agent from
the Remarketing Agent in connection with the Remarketing of the Notes, then all
such Proceeds shall be paid by the SQUARZ Agent as follows: (A) any and all
accrued but unpaid Underlying Warrant Installment Payments shall be paid to the
Company, and (B) all remaining Proceeds shall be paid to the respective Holders
of such Notes. All amounts to be paid to the Company hereunder shall be paid to
the Company at the account or accounts specified by the Company to Collateral
Agent in writing for such purpose by wire transfer in same day funds no later
than 2:00 p.m., New York City time, on the Business Day such payment is received
by the Collateral Agent (provided that if such payment is received by the
Collateral Agent on a day that is not a Business Day or after 10 a.m., New York
City time, on a Business Day, then such payment shall be made no later than
10:30 a.m., New York City time, on the next succeeding Business Day).

     SECTION 3.2    Application of Payments.

     All payments received by the SQUARZ Agent as provided herein shall be
applied by the SQUARZ Agent in accordance with the provisions of the SQUARZ
Agreement and any instructions given by the Collateral Agent in accordance with
the terms of Section 3.1 above. If, notwithstanding the foregoing, (a) the
SQUARZ Agent shall receive any payments of principal or other Proceeds on
account of any Pledged Note, the SQUARZ Agent shall hold the same as trustee of
an express trust for the benefit of the holders of the Notes (and

                                       10

<PAGE>

promptly deliver the same over to the Indenture Trustee for payment to such
holders), and neither the Company nor the SQUARZ Agent shall acquire any right,
title or interest in any such payments of principal so received, or (b) a Holder
shall receive any payments with respect to any Initial Pledged Treasuries
Interest or Substitute Pledged Treasuries Interest, the SQUARZ Agent or such
Holder shall hold the same as trustee of an express trust for the benefit of the
Company (and promptly deliver the same over to the Collateral Agent) for
application to the satisfaction of the obligations of the Holders under the
SQUARZ Agreement, and the Holders shall acquire no right, title or interest in
any such payments of principal or other Proceeds so received.

                                   ARTICLE IV

             SUBSTITUTION, RELEASE, REPLEDGE AND SETTLEMENT OF NOTES

     SECTION 4.1    Collateral Substitution and the Creation of Stripped SQUARZ.

     (a)  Pursuant to the SQUARZ Agreement, a Holder may exchange Substitute
Pledged Treasuries for the Pledged Note securing such Holder's obligations under
the SQUARZ Agreement by

          (i)       Transferring to the Collateral Agent the Requisite Amount of
     Substitute Pledged Treasuries,

          (ii)      Transferring a SQUARZ to the SQUARZ Agent, and

          (iii)     delivering a notice to the SQUARZ Agent, substantially in
     the form of Exhibit B hereto (or in any other form that may be agreed to
     between the Company and the SQUARZ Agent) (x) stating that such Holder has
     Transferred the Requisite Amount of Substitute Pledged Treasuries to the
     Collateral Agent pursuant to clause (i) above, (y) Pledging and instructing
     the SQUARZ Agent to Pledge such Substitute Pledged Treasuries to the
     Collateral Agent, and (z) requesting that the SQUARZ Agent instruct the
     Collateral Agent to release from the Pledge the Pledged Note related to
     such SQUARZ, each of the foregoing steps to be taken as specified in the
     SQUARZ Agreement.

     (b)  If the Collateral Agent receives from the SQUARZ Agent a notice or
instruction in writing substantially in the form provided in Exhibit A, the
Collateral Agent shall, upon its verification that it has received the Requisite
Amount of Substitute Pledged Treasuries from the applicable Holder of SQUARZ,

          (i)       hold such Substitute Pledged Treasuries as Collateral
     Pledged by the Holders;

          (ii)      subject to the terms of Section 4.1(c) below, release the
     Pledged Notes and promptly Transfer such Pledged Notes free and clear of
     the Pledge to the SQUARZ Agent; and

                                       11

<PAGE>

          (iii)     deliver to the Indenture Trustee a certificate by the
     Collateral Agent (with a copy to the SQUARZ Agent) certifying that it has
     received the Requisite Amount of Substitute Pledged Treasuries from the
     applicable Holder pursuant to the terms of this Agreement and that a
     Pledged Note has been released from the Pledge.

     (c)  Notwithstanding the foregoing, the Collateral Agent shall not accept
substitutions of Substitute Pledged Treasuries for Notes other than in integral
multiples of 20 SQUARZ.

     SECTION 4.2    Collateral Substitution and the Re-Creation of SQUARZ.

     (a)  Pursuant to the SQUARZ Agreement, a Holder may exchange a Note for the
Substitute Pledged Treasuries securing such Holder's obligations under the
SQUARZ Agreement by

          (i)       Transferring to the Collateral Agent a Note,

          (ii)      Transferring a Stripped SQUARZ to the SQUARZ Agent, and

          (iii)     delivering a notice to the SQUARZ Agent, substantially in
     the form of] Exhibit B hereto (or in any other form that may be agreed to
     between the Company and the SQUARZ Agent) (x) stating that such Holder has
     Transferred a Note to the Collateral Agent pursuant to clause (i) above,
     (y) Pledging and instructing the SQUARZ Agent to Pledge such Note to the
     Collateral Agent, and (z) requesting that the SQUARZ Agent instruct the
     Collateral Agent to release from the Pledge the Substitute Pledged
     Treasuries related to such Stripped SQUARZ, each of the foregoing steps to
     be taken as specified in the SQUARZ Agreement.

     (b)  If the Collateral Agent receives from the SQUARZ Agent a notice or
instruction in writing substantially in the form provided in Exhibit A, the
Collateral Agent shall, upon its verification that it has received a Note from
the applicable Holder of Stripped SQUARZ,

          (i)       hold such Note as Collateral Pledged by the Holders;

          (ii)      subject to the terms of Section 4.2(c) below, release the
     Requisite Amount of Substitute Pledged Treasuries and promptly Transfer
     such Substitute Pledged Treasuries free and clear of the Pledge to the
     SQUARZ Agent; and

          (iii)     deliver to the Indenture Trustee a certificate by the
     Collateral Agent (with a copy to the SQUARZ Agent) certifying that it has
     received a Note from the applicable Holder pursuant to the terms of this
     Agreement and that the Requisite Amount of Substitute Pledged Treasuries
     have been released from the Pledge.

     (c)  Notwithstanding the foregoing, the Collateral Agent shall not accept
substitutions of Notes for Substitute Pledged Treasuries other than in integral
multiples of 20 Stripped SQUARZ.

                                       12

<PAGE>

     SECTION 4.3    Substitution of Collateral due to Interest Default.

     If the Company defaults in its obligation to pay interest on the Notes when
and as required by the Indenture, any Holder of Pledged Notes who does not
exercise its right under the SQUARZ Agreement to cancel the Underlying Warrant
related to a SQUARZ or Stripped SQUARZ must, within five Business Days of such
default, deliver Substitute Pledged Treasuries to the Collateral Agent for
Pledge hereunder in substitution for the Pledged Note as described in Section
4.1. Upon the receipt by the Collateral Agent of such Substitute Pledged
Treasuries and completion of the other steps required by Section 4.1, the
Collateral Agent shall release such Notes free and clear of the Pledge to the
SQUARZ Agent for the benefit of the holders of such Notes. If such Collateral
Substitution is not properly effected, the Collateral Agent shall take the
actions provided for herein upon a cancellation of the Underlying Warrant.

     SECTION 4.4    Bankruptcy.

     (a)  Upon receipt by the Collateral Agent of written notice from the
Company or the SQUARZ Agent that a Bankruptcy Event has occurred, the Collateral
Agent shall release all Collateral from the Pledge and shall promptly Transfer
any Pledged Notes, Initial Pledged Treasuries or Substitute Pledged Treasuries
to the SQUARZ Agent for the benefit of the Holders of the SQUARZ and the
Stripped SQUARZ, respectively, free and clear of the Pledge created hereby.

     (b)  If the Collateral Agent shall for any reason fail promptly to
effectuate the release and Transfer of all Pledged Notes, Initial Pledged
Treasuries or Substitute Pledged Treasuries, as the case may be, as provided by
Section 4.4(a), the SQUARZ Agent shall:

          (i)       use its best efforts to obtain at the expense of the Company
     an opinion of a nationally recognized law firm reasonably acceptable to the
     Collateral Agent to the effect that, as a result of the occurrence of a
     Bankruptcy Event, the Collateral Agent will not be prohibited from
     releasing or Transferring the Collateral as provided in this Section 4.4,
     and shall deliver such opinion to the Collateral Agent within ten days
     after the occurrence of such Bankruptcy Event, and if (y) the SQUARZ Agent
     shall be unable to obtain such opinion within ten days after the occurrence
     of such Bankruptcy Event or (z) the Collateral Agent shall continue, after
     delivery of such opinion, to refuse to effectuate the release and Transfer
     of all Pledged Notes, Initial Pledged Treasuries or Substitute Pledged
     Treasuries, as the case may be, as provided in Section 4.4(a), then the
     SQUARZ Agent shall within 15 days after such Bankruptcy Event, commence an
     action or proceeding in the court with jurisdiction of the Company's case
     under the Bankruptcy Code seeking an order requiring the Collateral Agent
     to effectuate the release and transfer of all Pledged Notes, Initial
     Pledged Treasuries or Substitute Pledged Treasuries, as the case may be, as
     provided by this Section 4.4; or

                                       13

<PAGE>

          (ii)      commence an action or proceeding like that described in
     subsection (i) above within ten Business Days after Collateral Agent's
     receipt of notice of the occurrence of a Bankruptcy Event.

     SECTION 4.5    Cancellation, Expiration, Early Expiration or Exercise of
Underlying Warrants.

     (a)  Upon notice to the Collateral Agent from the SQUARZ Agent of an
Underlying Warrant Cancellation:

          (i)       with respect to any SQUARZ, the Collateral Agent shall (A)
     release from the Pledge the Pledged Note and, subject to Section
     4.5(a)(iii) below, Transfer such Pledged Note, free and clear of the Pledge
     created hereby, to the SQUARZ Agent for the benefit of the Holder of such
     SQUARZ, and (B) release an Initial Pledged Treasuries Interest from the
     Pledge and, subject to Sections 4.5(a)(iii) and 4.5(e) below, Transfer such
     Initial Pledged Treasuries Interest, free and clear of the Pledge created
     hereby, to the SQUARZ Agent for the benefit of the Holder of such SQUARZ;

          (ii)      with respect to any Stripped SQUARZ, the Collateral Agent
     shall (A) release a Substitute Pledged Treasuries Interest from the Pledge
     and, subject to Sections 4.5(a)(iii) and 4.5(e) below, Transfer a
     Substitute Pledged Treasuries Interest, free and clear of the Pledge
     created hereby, to the SQUARZ Agent for the benefit of the Holder of such
     SQUARZ, and (B) release an Initial Pledged Treasuries Interest from the
     Pledge and, subject to Sections 4.5(a)(iii) and 4.5(e) below, Transfer an
     Initial Pledged Treasuries Interest, free and clear of the Pledge created
     hereby, to the SQUARZ Agent for the benefit of the Holder of such Stripped
     SQUARZ; and

          (iii)     if an Underlying Warrant Cancellation has occurred in
     connection with the exercise by the Holder of the Put granted such Holder
     pursuant to the Indenture, the Collateral Agent shall, prior to
     Transferring any Collateral to the SQUARZ Agent for the benefit of such
     Holder, pay to the Company (or to its agent at the Company's direction) an
     amount sufficient to pay the full amount of any Underlying Warrant
     Installment Payment falling due on the Underlying Warrant Cancellation Date
     pursuant to the SQUARZ Agreement.

     (b)  Upon notice to the Collateral Agent from the SQUARZ Agent that any
Holder has not exercised an Underlying Warrant on or before the Underlying
Warrant Maturity Date, the Collateral Agent shall, with respect to the SQUARZ
held by such Holder, release from the Pledge the Pledged Note related to such
SQUARZ and Transfer such Pledged Note, free and clear of the Pledge created
hereby, to the SQUARZ Agent for the benefit of the Holder of such SQUARZ (all
Initial Pledged Treasuries and Substitute Pledged Treasuries having matured by
the Underlying Warrant Maturity Date).

     (c)  Upon notice to the Collateral Agent from the SQUARZ Agent that any
Holder has not exercised an Underlying Warrant on or before the Underlying
Warrant Early Expiration Date:

                                       14

<PAGE>

          (i)       with respect to any SQUARZ, the Collateral Agent shall (A)
     release from the Pledge the Pledged Note and, subject to Section
     4.5(c)(iii) below, Transfer such Pledged Note, free and clear of the Pledge
     created hereby, to the SQUARZ Agent for the benefit of the Holder of such
     SQUARZ, and (B) release an Initial Pledged Treasuries Interest from the
     Pledge and, subject to Sections 4.5(c)(iii) and 4.5(e) below, Transfer an
     Initial Pledged Treasuries Interest, free and clear of the Pledge created
     hereby, to the SQUARZ Agent for the benefit of the Holder of such SQUARZ;

          (ii)      with respect to any Stripped SQUARZ, the Collateral Agent
     shall (A) release a Substitute Pledged Treasuries Interest from the Pledge
     and, subject to Sections 4.5(c)(iii) and 4.5(e) below, Transfer a
     Substitute Pledged Treasuries Interest, free and clear of the Pledge
     created hereby, to the SQUARZ Agent for the benefit of the Holder of such
     SQUARZ, and (B) release an Initial Pledged Treasuries Interest from the
     Pledge and, subject to Section 4.5(c)(iii) and 4.5(e) below, Transfer an
     Initial Pledged Treasuries Interest, free and clear of the Pledge created
     hereby, to the SQUARZ Agent for the benefit of the Holder of such SQUARZ;
     and

          (iii)     Upon the Underlying Warrant Early Expiration Date, the
     Collateral Agent shall pay to the Company (or to its agent at the Company's
     request), prior to Transferring any Collateral to the SQUARZ Agent for the
     benefit of any Holder, the amount of any Underlying Warrant Installment
     Payments accrued to but excluding the Underlying Warrant Early Expiration
     Date.

     (d)  Upon the exercise by the Holder of any Underlying Warrant:

          (i)       with respect to any SQUARZ, the Collateral Agent shall (A)
     release from the Pledge the Pledged Note and, subject to Sections
     4.5(d)(iii), (iv) and (v), and 4.6(c), Transfer such Pledged Note, free and
     clear of the Pledge created hereby, to the SQUARZ Agent for the benefit of
     the Holder of such SQUARZ, and (B) release an Initial Pledged Treasuries
     Interest from the Pledge and, subject to Sections 4.5(d)(iii), (iv) and
     (v), 4.5(e), and 4.6(c) below, Transfer an Initial Pledged Treasuries
     Interest, free and clear of the Pledge created hereby, to the SQUARZ Agent
     for the benefit of the Holder of such SQUARZ;

          (ii)      with respect to any Stripped SQUARZ, the Collateral Agent
     shall (A) release a Substitute Pledged Treasuries Interest from the Pledge
     and, subject to Sections 4.5(d)(iii), (iv) and (v), and 4.6(c) below,
     Transfer a Substitute Pledged Treasuries Interest, free and clear of the
     Pledge created hereby, to the SQUARZ Agent for the benefit of the Holder of
     such Stripped SQUARZ, and (B) release an Initial Pledged Treasuries
     Interest from the Pledge and, subject to Sections 4.5(d)(iii), (iv) and
     (v), 4.5(e), and 4.6(c) below, Transfer an Initial Pledged Treasuries
     Interest, free and clear of the Pledge created hereby, to the SQUARZ Agent
     for the benefit of the Holder of such Stripped SQUARZ;

          (iii)     if an exercise of an Underlying Warrant occurs on a date
     that is an Underlying Warrant Installment Payment Date, the Collateral
     Agent shall, prior to

                                       15

<PAGE>

     Transferring any Collateral to the SQUARZ Agent for the benefit of any
     Holder, retain an amount sufficient to make the full amount of the
     Underlying Warrant Installment Payment due on such Underlying Warrant
     Installment Payment Date;

          (iv)      if no Required Acceleration Event has occurred and a Holder
     exercises an Underlying Warrant on a date that is not an Underlying Warrant
     Installment Payment Date, the Collateral Agent shall require, prior to
     Transferring any Collateral to the SQUARZ Agent for the benefit of such
     Holder, such Holder to pay to the SQUARZ Agent, for the benefit of the
     Company, in cash, the full amount of the Underlying Warrant Installment
     Payment that would otherwise be due on the next following Underlying
     Warrant Installment Payment Date; and

          (v)       if an exercise of an Underlying Warrant occurs following a
     Required Acceleration Event, the Collateral Agent shall require, prior to
     Transferring any Collateral to the SQUARZ Agent for the benefit of such
     Holder, such Holder to pay to the SQUARZ Agent, for the benefit of the
     Company, in cash, any Underlying Warrant Installment Payment accrued to but
     excluding the Underlying Warrant Early Expiration Date.

     (e)  Notwithstanding the foregoing but subject to Sections 4.5(f) and (g),
upon any Underlying Warrant Cancellation (other than due to a Bankruptcy Event)
or upon the exercise of any Underlying Warrant on a date other than the
Underlying Warrant Early Expiration Date or the Underlying Warrant Maturity
Date, in an amount other than an integral multiple of 80 Units (such that the
Initial Pledged Treasuries Interest and the Substitute Pledged Treasuries
Interest, as applicable, that would otherwise be released free and clear of the
Pledge represents a non-integral multiple of $1,000 principal amount of any
United States Treasury security), the Collateral Agent shall release to the
Holder the greatest amount of Initial Pledged Treasuries Interest and Substitute
Pledged Treasuries Interest that constitute an integral multiple of $1,000 in
principal amount of United States Treasury securities, and shall retain, subject
to Sections 4.5(f) and (g), the remaining portion of such Holder's Initial
Pledged Treasuries Interest and Substitute Pledged Treasuries Interest (as
applicable, the "Retained Treasuries") for the benefit of such Holder. The
Proceeds from the Retained Treasuries shall be distributed to the SQUARZ Agent
for the benefit of such Holder when and as the Retained Treasuries mature. In
such event, even though the Collateral Agent will continue to hold the Retained
Treasuries, such Holder's Retained Treasuries will be held by the Collateral
Agent for the benefit of such Holder, will cease to be Pledged to the Company
and will be free and clear of the Pledge created hereby.

     (f)  Upon the Underlying Warrant Early Expiration Date, the Collateral
Agent will promptly sell all remaining Initial Pledged Treasuries and Substitute
Pledged Treasuries and shall apply the such Proceeds to pay to the Company all
accrued but unpaid Underlying Warrant Installment Payments, if any, owing
hereunder or under the SQUARZ Agreement and then Transfer any remaining Proceeds
to the SQUARZ Agent for the benefit of the Holders.

                                       16

<PAGE>

     (g)  Upon the occurrence of any Bankruptcy Event (but following any
Bankruptcy Event, subject to receiving bankruptcy court approval to the extent
required by law), the Collateral Agent will promptly sell all remaining Initial
Pledged Treasuries and Substitute Pledged Treasuries and shall Transfer such
Proceeds to the SQUARZ Agent for the benefit of the Holders.

     SECTION 4.6    Remarketing; Application of Proceeds; Settlement.

     (a)  Subject to Section 4.6(c) below, following a Successful Remarketing of
Notes in accordance with the terms of the SQUARZ Agreement, the proceeds of such
Remarketing shall be, to the extent such Notes are Pledged Notes, distributed by
the Remarketing Agent to the Collateral Agent in accordance with the terms of
the SQUARZ Agreement. The Collateral Agent will then pay the proceeds of such
Remarketed Notes to the SQUARZ Agent, for the benefit of the Holder of such
Notes, less the amount, if any, necessary to pay any Underlying Warrant
Installment Payment then due under the SQUARZ Agreement.

     (b)  Within three Business Days following a Failed Remarketing, any Notes
delivered to the Remarketing Agent for such Remarketing shall be returned to the
Collateral Agent, together with written notice from the Remarketing Agent of the
Failed Remarketing. If any Holder of Notes exercises its right to Put such
Holder's Notes to the Company following a Failed Remarketing pursuant to the
terms of the Indenture, the proceeds of such Put shall be paid (a) to the Holder
of such Notes if the Notes are Separate Notes or (b) in accordance with the
terms of the SQUARZ Agreement if such Notes were Pledged Notes.

     (c)  If a Holder is exercising an Underlying Warrant and is at the same
time participating in a Remarketing of the related Note, such Holder may
instruct the Collateral Agent to Transfer the Proceeds of such Remarketing of
the Note to the Company to pay the Underlying Warrant Exercise Price in
accordance with the terms of the SQUARZ Agreement and the Collateral Agent shall
comply with any such instruction.

                                    ARTICLE V

                             VOTING RIGHTS -- NOTES

     SECTION 5.1    Exercise by SQUARZ Agent.

     The SQUARZ Agent may exercise, or refrain from exercising, any and all
voting and other consensual rights pertaining to the Pledged Notes or any part
thereof for any purpose not inconsistent with the terms of this Agreement;
provided, that the SQUARZ Agent shall not exercise or, as the case may be, shall
not refrain from exercising such right if, in the judgment of the Company, such
action would impair or otherwise have a material adverse effect on the value of
all or any of the Collateral; and provided, further, that the SQUARZ Agent shall
give the Collateral Agent (with a copy of such notice to the Company) at least
five days' prior written notice of the manner in which it intends to exercise,
or its reasons for refraining from exercising, any such right. Upon receipt by
the Securities Intermediary or the Collateral Agent of any notices and other
communications in respect of any Pledged Notes, including

                                       17

<PAGE>

notice of any meeting at which holders of Notes are entitled to vote or
solicitation of consents, waivers or proxies of holders of Notes, the Securities
Intermediary shall use reasonable efforts to send promptly to the Collateral
Agent, which shall use reasonable efforts to send promptly to the SQUARZ Agent
such notice or communication, and as soon as reasonably practicable after
receipt of a written request therefor from the SQUARZ Agent, execute and deliver
to the SQUARZ Agent such proxies and other instruments in respect of such
Pledged Notes (in form and substance satisfactory to the Collateral Agent) as
are prepared by the SQUARZ Agent with respect to the Pledged Notes.

                                   ARTICLE VI

                               RIGHTS AND REMEDIES

     SECTION 6.1    Rights and Remedies of the Collateral Agent.

     (a)  In addition to the rights and remedies available at law or in equity,
after any failure on the part of any Holder to make an Underlying Warrant
Installment Payment when and as the same is due and payable pursuant to the
terms of the SQUARZ Agreement, the Collateral Agent shall have all of the rights
and remedies with respect to the Collateral of a secured party under the Uniform
Commercial Code (or any successor thereto) as in effect in the State of New York
from time to time (the "Code") (whether or not the Code is in effect in the
jurisdiction where the rights and remedies are asserted) and the TRADES
Regulations and such additional rights and remedies to which a secured party is
entitled under the laws in effect in any jurisdiction where any rights and
remedies hereunder may be asserted. Wherever reference is made in this Agreement
to any section of the Code, such reference shall be deemed to include a
reference to any provision of the Code that is a successor to, or amendment of,
such section. Without limiting the generality of the foregoing, such remedies
may include, to the extent permitted by applicable law, (i) retention of any
payments on the Pledged Notes (other than payments attributable to principal) or
other Collateral in satisfaction of the Holders' obligations under the SQUARZ
Agreement, (ii) sale of the Pledged Notes or other Collateral in one or more
public or private sales, in each case at the written direction of the Company,
or (iii) cancellation of the applicable Underlying Warrant; provided, however,
that in the case of a sale of the Pledged Note, the Proceeds of such sale
attributable to principal of such Pledged Note shall be paid to the SQUARZ Agent
for the benefit of the Holder of such Pledged Note.

     (b)  Notwithstanding anything to the contrary set forth herein, the
obligation of any Holder to pay the Underlying Warrant Installment Payments or
to perform it obligations under the SQUARZ Agreement shall be not be recourse to
the principal of any Note.

     (c)  Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, if the amounts received by the Collateral
Agent (i) as interest payments on a Pledged Note or (ii) with respect to a
Initial Pledged Treasuries Interest and/or Substitute Pledged Treasuries
Interest as provided in Article III hereof are, collectively, insufficient to
satisfy the obligations of the Holder of the Unit to pay any Underlying Warrant
Installment Payment, the inability to make such payments shall constitute an
event of default on the part

                                       18

<PAGE>

of the Holder under the SQUARZ Agreement. Upon any such event of default, the
Collateral Agent shall have and may exercise, with reference to such Pledged
Note, Initial Pledged Treasuries Interest and Substitute Pledged Treasuries
Interest, as applicable, any and all of the rights and remedies available to a
secured party under the Code and the TRADES Regulations after default by a
debtor, and as otherwise granted herein or under any other law; provided,
however, that a failure to make any Underlying Warrant Installment Payment which
results from the Company's failure to pay interest on the related Pledged Note
shall not constitute an event of default on the part of the Holder of such Note
and shall not entitle the Company or the Collateral Agent to any rights or
remedies as a secured party, except that the Company may declare the Underlying
Warrant null and void if a Holder does not pay the Underlying Warrant
Installment Payment in full within five Business Days of the date such
Underlying Warrant Payment is due.

     (d)  Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, the Collateral Agent is hereby irrevocably
authorized to receive and collect all payments of (i) interest on the Pledged
Notes, and (ii) the payments made with respect to any Initial Pledged Treasuries
Interest or Substitute Pledged Treasuries Interest, subject, in each case, to
the provisions of Article III, and as otherwise granted herein.

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

     SECTION 6.2    Substitutions.

     Whenever a Holder has the right to exchange Substitute Pledged Treasuries
or Notes, as the case may be, for Collateral held by the Collateral Agent, such
substitution shall not constitute a novation of the security interest created
hereby.

                                   ARTICLE VII

                    REPRESENTATIONS AND WARRANTIES; COVENANTS

     SECTION 7.1    Representations and Warranties.

     Each Holder, acting through the SQUARZ Agent as its attorney-in-fact (it
being understood that the SQUARZ Agent shall not be liable for any
representation or warranty made by or on behalf of a Holder), hereby represents
and warrants to the Collateral Agent,

                                       19

<PAGE>

which representations and warranties shall be deemed repeated by each Holder on
each day a Holder Transfers Collateral, that:

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

     (b)  such Holder is the sole beneficial owner of the Collateral and, in the
case of Collateral delivered in physical form, is the sole holder of such
Collateral and is the sole beneficial owner of, or has the right to Transfer,
the Collateral it Transfers to the Collateral Agent, free and clear of any
security interest, lien, encumbrance, call, liability to pay money or other
restriction other than the security interest and lien granted under Section 2.1
hereof;

     (c)  upon the Transfer of the Collateral to a Collateral Account, the
Collateral Agent, for the benefit of the Company, will have a valid and
perfected first priority security interest therein (assuming that any central
clearing operation or any Intermediary or other entity not within the control of
the Holder involved in the Transfer of the Collateral, including the Collateral
Agent, gives the notices and takes the action required of it hereunder and under
applicable law for perfection of that interest and assuming the establishment
and exercise of control pursuant to Section 2.2 hereof); and

     (d)  the execution and performance by the Holder of its obligations under
this Agreement will not result in the creation of any security interest, lien or
other encumbrance on the Collateral other than the security interest and lien
granted under Section 2.1 hereof or violate any provision of any existing law or
regulation applicable to it or of any mortgage, charge, pledge, indenture,
contract or undertaking to which it is a party or which is binding on it or any
of its assets.

     SECTION 7.2    Covenants.

     Each Holder, acting through the SQUARZ Agent as its attorney-in-fact (it
being understood that the SQUARZ Agent shall not be liable for any covenant made
by or on behalf of a Holder), hereby covenants to the Collateral Agent that for
so long as the Collateral remains subject to the Pledge:

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

     (b)  neither the SQUARZ Agent nor such Holders will sell or otherwise
dispose (or attempt to dispose) of the Collateral or any part of it except for
the beneficial interest therein, subject to the pledge hereunder, transferred in
connection with the Transfer of a Unit.

                                       20

<PAGE>

                                  ARTICLE VIII

                              THE COLLATERAL AGENT

     SECTION 8.1    Appointment, Powers and Immunities.

     (a)  The Collateral Agent shall act as agent for the Company hereunder with
such powers as are specifically vested in the Collateral Agent by the terms of
this Agreement, together with such other powers as are reasonably incidental
thereto. Each of the Collateral Agent, the Custodial Agent and the Securities
Intermediary:

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

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

          (iii)     shall not be required to initiate or conduct any litigation
     or collection proceedings hereunder (except in the case of the Collateral
     Agent, pursuant to written directions furnished under Section 8.2 hereof,
     subject to Section 8.6 hereof);

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

          (v)       shall not be required to advise any party as to selling or
     retaining, or taking or refraining from taking any action with respect to,
     the SQUARZ, Stripped SQUARZ or other property deposited hereunder.

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

                                       21

<PAGE>

     (b)  No provision of this Agreement shall require the Collateral Agent, the
Custodial Agent or the Securities Intermediary to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its
duties hereunder. In no event shall the Collateral Agent, the Custodial Agent or
the Securities Intermediary be liable for any amount in excess of the value of
the Collateral or for any special, indirect, individual, consequential damages
or lost profits or loss of business, arising in connection with this Agreement,
even if the Collateral Agent, the Custodial Agent or the Securities Intermediary
has been advised of the likelihood of such loss or damage being incurred and
regardless of the form of action. Notwithstanding the foregoing, the Collateral
Agent, the Custodial Agent, the SQUARZ Agent and Securities Intermediary, each
in its individual capacity, hereby waive any right of setoff, banker's lien,
liens or perfection rights as securities intermediary or any counterclaim with
respect to any of the Collateral.

     (c)  The Collateral Agent, Custodial Agent and Securities Intermediary
shall have no liability whatsoever for the action or inaction of any Clearing
Agency or any book-entry system thereof. In no event shall any Clearing Agency
or any book-entry system thereof be deemed an agent or subcustodian of the
Collateral Agent, Custodial Agent and Securities Intermediary. The Collateral
Agent, Custodial Agent and Securities Intermediary shall not be responsible or
liable for any failure or delay in the performance of its obligations under this
Agreement arising out of or caused, directly or indirectly, by circumstances
beyond its reasonable control, including, without limitation, acts of God;
earthquakes; fires; floods; war (whether declared or undeclared); terrorism;
civil or military disturbances; sabotage; epidemics; riots; interruptions, loss
or malfunctions of utilities, computer (hardware or software) or communications
service; accidents; labor disputes; acts of civil or military authority;
governmental actions; or inability to obtain labor, material, equipment or
transportation.

     SECTION 8.2    Instructions of the Company.

     The Company shall have the right, by one or more instruments in writing
executed and delivered to the Collateral Agent, the Custodial Agent or the
Securities Intermediary, as the case may be, to direct the time, method and
place of conducting any proceeding for the realization of any right or remedy
available to the Collateral Agent, or of exercising any power conferred on the
Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be, or to direct the taking or refraining from taking of any action
authorized by this Agreement; provided, however, that (i) such direction shall
not conflict with the provisions of any law or of this Agreement and (ii) the
Collateral Agent, the Custodial Agent and the Securities Intermediary shall each
receive indemnity reasonably satisfactory to it as provided herein. Nothing in
this Section 8.2 shall impair the right of the Collateral Agent in its
discretion to take any action or omit to take any action which it deems proper
and which is not inconsistent with such direction.

     SECTION 8.3    Reliance.

     Each of the Securities Intermediary, the Custodial Agent and the Collateral
Agent shall be entitled conclusively to rely upon any certification, order,
judgment, opinion, notice

                                       22

<PAGE>

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

     SECTION 8.4    Rights in Other Capacities.

     The Collateral Agent, the Custodial Agent and the Securities Intermediary
and their affiliates may (without having to account therefor to the Company)
accept deposits from, lend money to, make their investments in and generally
engage in any kind of banking, trust or other business with the SQUARZ Agent,
any Holder and any holder of Separate Notes (and any of their respective
subsidiaries or affiliates) as if it were not acting as the Collateral Agent,
the Custodial Agent or the Securities Intermediary, as the case may be, and the
Collateral Agent, the Custodial Agent and the Securities Intermediary and their
affiliates may accept fees and other consideration from the SQUARZ Agent, any
Holder or any holder of Separate Notes without having to account for the same to
the Company; provided that each of the Securities Intermediary, the Custodial
Agent and the Collateral Agent covenants and agrees with the Company that,
except as provided in this Agreement, it shall not accept, receive or permit
there to be created in favor of itself (and waives any right of set-off or
banker's lien with respect to) and shall take no affirmative action to permit
there to be created in favor of any other Person, any security interest, lien or
other encumbrance of any kind in or upon the Collateral and the Collateral shall
not be commingled with any other assets of any such Person.

     SECTION 8.5    Non-Reliance on Collateral Agent.

     None of the Securities Intermediary, the Custodial Agent or the Collateral
Agent shall be required to keep itself informed as to the performance or
observance by the SQUARZ Agent or any Holder, of this Agreement, the SQUARZ
Agreement, any Certificate or any other document referred to or provided for
herein or therein or to inspect the properties or books of the SQUARZ Agent or
any Holder. The Collateral Agent, the Custodial Agent and the Securities
Intermediary shall not have any duty or responsibility to provide the Company or
the Remarketing Agent with any credit or other information concerning the
affairs, financial condition or business of the SQUARZ Agent, any Holder or any
holder of Separate Notes (or any of their respective subsidiaries or affiliates)
that may come into the possession of the Collateral Agent, the Custodial Agent
or the Securities Intermediary or any of their respective affiliates.

     SECTION 8.6    Compensation and Indemnity.

     The Company agrees:

                                       23

<PAGE>

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

     (b)  to indemnify the Collateral Agent, the Custodial Agent, the Securities
Intermediary and their officers, directors and agents for, and to hold each of
them harmless from and against, any and all loss, liability, damage, claim or
reasonable out-of-pocket expense incurred (other than to the extent caused by
the gross negligence or willful misconduct on its part of such parties), arising
out of or in connection with the acceptance or administration of its powers and
duties under this Agreement, including the out-of-pocket costs and expenses
(including fees and expenses of counsel) of defending itself against any claim
(whether asserted by the Company, a Holder or any other Person) or liability in
connection with the exercise or performance of such powers and duties or
collecting such amounts. The Collateral Agent, the Custodial Agent and the
Securities Intermediary shall each promptly notify the Company of any third
party claim which may give rise to the indemnity hereunder and give the Company
the opportunity to participate in the defense of such claim with counsel
reasonably satisfactory to the indemnified party, and no such claim shall be
settled without the written consent of the Company, which consent shall not be
unreasonably withheld. The provisions of this Section 8.6 shall survive the
resignation or removal of the Collateral Agent, the Custodial Agent and the
Securities Intermediary or the termination of this Agreement.

     SECTION 8.7    Failure to Act.

     In the event of any ambiguity in the provisions of this Agreement or any
dispute between or conflicting claims by or among the parties hereto or any
other Person with respect to any funds or property deposited hereunder, the
Collateral Agent, Custodial Agent and the Securities Intermediary shall be
entitled, after prompt notice to the Company and the SQUARZ Agent, at its sole
option, to refuse to comply with any and all claims, demands or instructions
with respect to such property or funds so long as such dispute or conflict shall
continue, and none of the Collateral Agent, Custodial Agent or the Securities
Intermediary shall be or become liable in any way to any of the parties hereto
for its failure or refusal to comply with such conflicting claims, demands or
instructions. The Collateral Agent, Custodial Agent and the Securities
Intermediary shall be entitled to refuse to act until either (i) such
conflicting or adverse claims or demands shall have been finally determined by a
court of competent jurisdiction or settled by agreement between the conflicting
parties as evidenced in a writing, reasonably satisfactory to the Collateral
Agent, Custodial Agent or the Securities Intermediary, as the case may be, or
(ii) the Collateral Agent, the Custodial Agent or the Securities Intermediary,
as the case may be, shall have received security or an indemnity reasonably
satisfactory to the Collateral Agent, Custodial Agent or the Securities
Intermediary, as the case may be, sufficient to save the Collateral Agent,
Custodial Agent or the Securities Intermediary, as the case may be, harmless
from and against any and all loss, liability or reasonable out-of-pocket expense
which the Collateral Agent, Custodial Agent or the Securities Intermediary, as
the case may be, may incur by reason of its acting without willful misconduct or
gross negligence. The Collateral Agent, Custodial Agent or the

                                       24

<PAGE>

Securities Intermediary may in addition elect to commence an interpleader action
or seek other judicial relief or orders as the Collateral Agent, Custodial Agent
or the Securities Intermediary, as the case may be, may deem necessary.
Notwithstanding anything contained herein to the contrary, none of the
Collateral Agent, Custodial Agent or the Securities Intermediary shall be
required to take any action that is in its opinion contrary to law or to the
terms of this Agreement, or which would in its opinion subject it or any of its
officers, employees or directors to liability.

     SECTION 8.8    Resignation.

     Subject to the appointment and acceptance of a successor Collateral Agent,
Custodial Agent or Securities Intermediary, as provided below, (a) the
Collateral Agent, Custodial Agent and the Securities Intermediary may resign at
any time by giving notice thereof to the Company and the SQUARZ Agent as
attorney-in-fact for the Holders, (b) the Collateral Agent, Custodial Agent and
the Securities Intermediary may be removed at any time by the Company and (c) if
the Collateral Agent, Custodial Agent or the Securities Intermediary fails to
perform any of its material obligations hereunder in any material respect for a
period of not less than 20 days after receiving written notice of such failure
by the SQUARZ Agent and such failure shall be continuing, the Collateral Agent,
Custodial Agent or the Securities Intermediary may be removed by the SQUARZ
Agent. The SQUARZ Agent shall promptly notify the Company of any removal of the
Collateral Agent, the Custodial Agent or the Securities Intermediary pursuant to
clause (c) of the immediately preceding sentence. The Company shall promptly
notify the SQUARZ Agent of any removal of the Collateral Agent, the Custodial
Agent or the Securities Intermediary pursuant to clause (b) of the second
preceding sentence. Upon any such resignation or removal, the Company shall have
the right to appoint a successor Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be. If no successor Collateral Agent, Custodial
Agent or Securities Intermediary, as the case may be, shall have been so
appointed and shall have accepted such appointment within 30 days after the
retiring Collateral Agent's, Custodial Agent's or Securities Intermediary's
giving of notice of resignation or such removal, then the retiring Collateral
Agent, Custodial Agent or Securities Intermediary, as the case may be, may at
the Company's expense petition any court of competent jurisdiction for the
appointment of a successor Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be. Each of the Collateral Agent, Custodial Agent
and the Securities Intermediary shall be a bank that has an office in New York,
New York with a combined capital and surplus of at least $100,000,000. Upon the
acceptance of any appointment as Collateral Agent, Custodial Agent or Securities
Intermediary, as the case may be, hereunder by a successor Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, such successor
shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Collateral Agent, Custodial Agent or
Securities Intermediary, as the case may be, and the retiring Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, shall take all
appropriate action to transfer any money and property held by it hereunder
(including the Collateral) to such successor after the payment of any
outstanding fees, expenses and indemnities due and owing to such remaining
party. The retiring Collateral Agent, Custodial Agent or Securities Intermediary
shall, upon such succession, be discharged from its duties

                                       25

<PAGE>

and obligations as Collateral Agent, Custodial Agent or Securities Intermediary
hereunder. After any retiring Collateral Agent's, Custodial Agent's or
Securities Intermediary's resignation hereunder as Collateral Agent, Custodial
Agent or Securities Intermediary, the provisions of this Section 8.8, and
Section 8.6 hereof, shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as the Collateral
Agent, Custodial Agent or Securities Intermediary. Any resignation or removal of
the Collateral Agent hereunder shall be deemed for all purposes of this
Agreement as the simultaneous resignation or removal of the Custodial Agent and
the Securities Intermediary hereunder.

     SECTION 8.9    Right to Appoint Agent or Advisor.

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

     SECTION 8.10   Survival.

     The provisions of this Article VIII shall survive termination of this
Agreement and the resignation or removal of the Collateral Agent, the Custodial
Agent or the Securities Intermediary.

     SECTION 8.11   Exculpation.

     Anything in this Agreement to the contrary notwithstanding, in no event
shall any of the Collateral Agent, the Custodial Agent or the Securities
Intermediary or their officers, employees or agents be liable under this
Agreement to any third party for indirect, special, punitive or consequential
loss or damage of any kind whatsoever, including lost profits, whether or not
the likelihood of such loss or damage was known to the Collateral Agent, the
Custodial Agent or the Securities Intermediary, or any of them, and regardless
of the form of action.

                                   ARTICLE IX

                                    AMENDMENT

     SECTION 9.1    Amendment Without Consent of Holders.

     Without the consent of any Holders, the Company, the Collateral Agent, the
Custodial Agent, the Securities Intermediary and the SQUARZ Agent, at any time
and from time to time, may amend this Agreement, in form satisfactory to the
Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary
and the SQUARZ Agent, for any of the following purposes:

                                       26

<PAGE>

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

     (b)  to add to the covenants of the Company for the benefit of the Holders,
or to surrender any right or power herein conferred upon the Company so long as
such covenants or such surrender do not adversely affect the validity,
perfection or priority of the security interests granted or created hereunder;
or

     (c)  to evidence and provide for the acceptance of appointment hereunder by
a successor Collateral Agent, Custodial Agent, Securities Intermediary or SQUARZ
Agent; or

     (d)  to add, amend, or supplement procedures and procedural matters by
which the transactions contemplated by and other actions provided for in this
Agreement are effectuated, including forms of notices, request, instructions,
and the like.

     (e)  to cure any ambiguity or potential ambiguity or to correct, amend, or
supplement any provisions herein which may be defective or inconsistent with any
other such provisions herein or with complementary provisions in the SQUARZ
Agreement; or

     (f)  to make any other provisions with respect to such matters or questions
arising under this Agreement, provided such action shall not adversely affect
the interests of the Holders in any material respect.

     SECTION 9.2    Amendment with Consent of Holders.

     With the consent of not less than a majority of the Outstanding Units
voting together as one class, by act of the Holders of such Units delivered to
the Company, the SQUARZ Agent or the Collateral Agent, as the case may be, the
Company, when duly authorized by a Board Resolution, the SQUARZ Agent, the
Collateral Agent, the Custodial Agent and the Securities Intermediary may amend
this Agreement for the purpose of modifying in any manner the provisions of this
Agreement or the rights of the Holders in respect of the Units; provided,
however, that no such supplemental agreement shall, without the consent of each
Holder adversely affected thereby:

     (a)  change the amount or type of Collateral underlying a Unit (except for
the rights of holders of SQUARZ to substitute the Substitute Pledged Treasuries
for the Pledged Notes, or the rights of Holders of Stripped SQUARZ to substitute
Notes for the Substitute Pledged Treasuries), impair the right of the Holder to
receive distributions on the underlying Collateral or otherwise adversely affect
the Holder's rights in or to such Collateral; or

     (b)  otherwise effect any action that would require the consent of the
Holder affected thereby pursuant to the SQUARZ Agreement if such action were
effected by an agreement supplemental thereto; or

     (c)  reduce the percentage of Outstanding Units the consent of whose
Holders is required for any such amendment.

                                       27

<PAGE>

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

     SECTION 9.3    Execution of Amendments.

     In executing any amendment permitted by this Section, the Collateral Agent,
the Custodial Agent, and the Securities Intermediary shall receive and (subject
to Section 8.1 hereof, with respect to the Collateral Agent) shall be fully
protected in relying upon, an opinion of counsel stating that the execution of
such amendment is authorized or permitted by this Agreement and that all
conditions precedent, if any, to the execution and delivery of such amendment
have been satisfied and, in the case of an amendment pursuant to Section 9.1,
that such amendment does not adversely affect the validity, perfection or
priority of the security interests granted or created hereunder.

     SECTION 9.4    Effect of Amendments.

     Upon the execution of any amendment under this Article IX, this Agreement
shall be modified in accordance therewith, and such amendment shall form a part
of this Agreement for all purposes; and every Holder theretofore or thereafter
authenticated, executed on behalf of the Holders and delivered under the SQUARZ
Agreement shall be bound thereby.

     SECTION 9.5    Reference to Amendments.

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

                                    ARTICLE X

                                  MISCELLANEOUS

     SECTION 10.1   No Waiver.

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

                                       28

<PAGE>

     SECTION 10.2   GOVERNING LAW.

     THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS OF
LAWS. Without limiting the foregoing, the above choice of law is expressly
agreed to by the Securities Intermediary, the Collateral Agent, the Custodial
Agent and the Holders acting through the SQUARZ Agent, as their
attorney-in-fact, in connection with the establishment and maintenance of the
Collateral Accounts, which law, for purposes of the Code, shall be deemed to be
the law governing all Security Entitlements related thereto. In addition, such
parties agree that, for purposes of the Code, New York shall be the Securities
Intermediary's jurisdiction. The Company, the Collateral Agent and the Holders,
acting through the SQUARZ Agent as their attorney-in-fact, hereby submit to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York state court sitting in New York City
for the purposes of all legal proceedings arising out of or relating to this
Agreement or the transactions contemplated hereby. The Company, the Collateral
Agent and the Holders , acting through the SQUARZ Agent as their
attorney-in-fact, irrevocably waive, to the fullest extent permitted by
applicable law, any objection which they may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any claim that
any such proceeding brought in such a court has been brought in an inconvenient
forum.

     SECTION 10.3   Notices.

     Unless otherwise stated herein, all notices, requests, consents and other
communications provided for herein (including, without limitation, any
modifications of, or waivers or consents under, this Agreement) shall be given
or made in writing (including, without limitation, by telecopy) delivered to the
intended recipient at the "Address for Notices" specified below its name on the
signature pages hereof or, as to any party, at such other address as shall be
designated by such party in a notice to the other parties. Except as otherwise
provided in this Agreement, all such communications shall be deemed to have been
duly given when personally delivered or, in the case of a mailed notice or
notice transmitted by telecopier, upon receipt, in each case given or addressed
as aforesaid.

     SECTION 10.4   Successors and Assigns.

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

     SECTION 10.5   Counterparts.

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

                                       29

<PAGE>

     SECTION 10.6   Severability.

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

     SECTION 10.7   Expenses, Etc.

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

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

     (b)  all reasonable costs and expenses of the Collateral Agent (including,
without limitation, reasonable fees and expenses of counsel) in connection with
(i) any enforcement or proceedings resulting or incurred in connection with
causing any Holder to satisfy its obligations under the Underlying Warrants
forming a part of the Units and (ii) the enforcement of this Section 10.7; and

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

     SECTION 10.8   Security Interest Absolute.

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

     (a)  any lack of validity or enforceability of any provision of the SQUARZ
Agreement, the Underlying Warrants or any Certificate or any other agreement or
instrument relating thereto;

     (b)  any change in the time, manner or place of payment of, or any other
term of, or any increase in the amount of, all or any of the obligations of
Holders under the related SQUARZ Agreement, the related Underlying Warrants, any
Certificate, or any other

                                       30

<PAGE>

amendment or waiver of any term of, or any consent to any departure from any
requirement of, the SQUARZ Agreement, any Underlying Warrant, any Certificate or
any other agreement or instrument relating thereto; or

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

     SECTION 10.9   Waiver of Jury Trial.

     EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE
UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND
THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                                       31

<PAGE>

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

                                         BERKSHIRE HATHAWAY INC.

                                         By:  /s/ Marc D. Hamburg
                                             ---------------------------
                                             Name: Marc D. Hamburg
                                             Title: Vice President

                                         Address for Notices:

                                         Berkshire Hathaway Inc.
                                         1440 Kiewit Plaza
                                         Omaha, Nebraska 68131
                                         Attention: Chief Financial Officer

                                         The Bank of New York, as Collateral
                                          Agent, Custodial Agent, and
                                          Securities Intermediary

                                         By:  /s/ Robert A. Massimillo
                                             ---------------------------
                                             Name: Robert A. Massimillo
                                             Title: Vice President

                                         Address for Notices:

                                         101 Barclay Street
                                         New York, NY 10286
                                         Attention: Corporate Trust
                                          Administration

                                         The Bank of New York, as SQUARZ Agent

                                         By:  /s/ Robert A. Massimillo
                                             ---------------------------
                                             Name: Robert A. Massimillo
                                             Title: Vice President

                                         Address for Notices:

                                         101 Barclay Street
                                         New York, NY 10286
                                         Attention: Corporate Trust
                                          Administration

                                       S-1

<PAGE>

                                    EXHIBIT A

                             INSTRUCTION FROM SQUARZ
                            AGENT TO COLLATERAL AGENT

The Bank of New York,
as Collateral Agent
101 Barclay Street
New York, NY 10286
Attention: Corporate Trust Administration

     Re:  SQUARZ of Berkshire Hathaway Inc. (the "Company")

     We hereby notify you in accordance with Section [3.2] [3.3] of the SQUARZ
Agreement, dated as of May 28, 2002 and amended and restated as of August 13,
2002 (the "SQUARZ Agreement"), among the Company and us, as SQUARZ Agent and as
attorney-in-fact for the Holders of [SQUARZ] [Stripped SQUARZ] from time to
time, (and in accordance with Section [4.1] [4.2] of the Pledge Agreement, dated
as of May 28, 2002 and amended and restated as of August 13, 2002) that the
Holder of [SQUARZ] [Stripped SQUARZ] listed below (the "Holder") has elected to
convert [__________] [SQUARZ] [Stripped SQUARZ] into [_____________] [Stripped
SQUARZ] [SQUARZ].

     In connection therewith, we hereby notify you that, pursuant to the
instructions of the Holder, we intend to substitute the [Requisite Amount of
Substitute Pledged Treasuries (calculated pursuant to the SQUARZ Agreement)]
[$_______ aggregate principal amount of Notes]

                                 in exchange for

[$_______ aggregate principal amount of Pledged Notes] [Substitute Pledged
Treasuries] held by you in accordance with the Pledge Agreement.

     The Holder has delivered to us a notice stating that the Holder has
transferred [a Requisite Amount of Substitute Pledged Treasuries (calculated
pursuant to the SQUARZ Agreement)] [$_______ aggregate principal amount of
Notes] to you, as Collateral Agent and has instructed us to, and we hereby do,
pledge and grant to you, as Collateral Agent, for the benefit of the Company, as
collateral security for the performance by such Holder of its obligations under
the SQUARZ Agreement, a security interest in all of the right, title and
interest of such Holder (subject only to recourse limitations expressly stated
in the Pledge Agreement) in such [Requisite Amount of Substitute Pledged
Treasuries (calculated pursuant to the SQUARZ Agreement)] [$_______ aggregate
principal amount of Notes].

                                       A-1

<PAGE>

     We hereby instruct you, upon receipt of such [Requisite Amount of
Substitute Pledged Treasuries (calculated pursuant to the SQUARZ Agreement)]
[$_______ aggregate principal amount of Notes], and upon the payment by such
Holder of any applicable fees, to release the [$_______ aggregate principal
amount of Pledged Notes] [Substitute Pledged Treasuries] related to such
[SQUARZ] [Stripped SQUARZ] to us in accordance with the Holder's instructions.
Capitalized terms used herein but not defined shall have the meaning set forth
in the SQUARZ Agreement.

Date:  _____________________

                                         The Bank of New York as SQUARZ Agent

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

Please print name and address of Registered Holder electing to substitute
[Substitute Pledged Treasuries] [Notes] for the [Pledged Notes] [Substitute
Pledged Treasuries]:

Name:

Social Security or other Taxpayer Identification
Number, if any:

Address:

                                       A-2

<PAGE>

                                    EXHIBIT B

                           INSTRUCTION TO SQUARZ AGENT

The Bank of New York,
as SQUARZ Agent
101 Barclay Street
New York, NY 10286
Attention: Corporate Trust Administration

Re:  SQUARZ of Berkshire Hathaway Inc. (the "Company")

          The undersigned Holder hereby notifies you that it has elected to
convert [__________] [SQUARZ] [Stripped SQUARZ] into [_____________] [Stripped
SQUARZ] [SQUARZ].

          In connection therewith, pursuant to the SQUARZ Agreement, dated May
28, 2002 and amended and restated as of August 13, 2002 (the "SQUARZ
Agreement"), among the you and the Company (and pursuant to the Pledge
Agreement, dated as of May 28, 2002 and amended and restated as of August 13,
2002), the Holder has transferred [a Requisite Amount of Substitute Pledged
Treasuries (calculated pursuant to the SQUARZ Agreement)] [$_______ aggregate
principal amount of Notes] to the Collateral Agent, hereby pledges the same to
the Collateral Agent, and hereby instructs you to,

     .    pledge and grant to the Collateral Agent, for the benefit of the
          Company, as collateral security for the performance by the undersigned
          Holder of its obligations under the SQUARZ Agreement, a security
          interest in all of the right, title and interest of the undersigned
          Holder (subject only to recourse limitations expressly stated in the
          Pledge Agreement) in such [Requisite Amount of Substitute Pledged
          Treasuries (calculated pursuant to the SQUARZ Agreement)] [$_______
          aggregate principal amount of Notes];

     .    instruct the Collateral Agent to release to you on behalf of the
          undersigned Holder the [Pledged Notes] [Substitute Pledged Treasuries]
          related to such [SQUARZ] [Stripped SQUARZ], and

     .    upon such release, cancel [______] [SQUARZ] [Stripped SQUARZ] held by
          such Holder and issue the same amount of [Stripped SQUARZ] [SQUARZ] in
          the name of the undersigned Holder.

                                       B-1

<PAGE>

Capitalized terms used herein but not defined shall have the meaning set forth
in the SQUARZ Agreement.

          The undersigned Holder has paid the Collateral Agent all applicable
fees relating to such exchange.

Date:                                    Signature:
     ---------------------                          ----------------------------

                                         Signature Guarantee:
                                                              ------------------

Please print name and address of Registered Holder:

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

                                       B-2

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