Document:

<PAGE>

                                                                    EXHIBIT 4.2

                                 [FACE OF NOTE]

IF THE REGISTERED OWNER OF THIS NOTE (AS INDICATED BELOW) IS THE DEPOSITORY
TRUST COMPANY OR A NOMINEE OF THE DEPOSITORY TRUST COMPANY, THIS NOTE IS A
GLOBAL NOTE AND THE FOLLOWING LEGENDS APPLY:

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

THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

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

<TABLE>
<CAPTION>
<S>                                       <C>                                        <C>
REGISTERED                                CUSIP No.:                                 PRINCIPAL AMOUNT:
No. FXR-___                                                                          $
</TABLE>

                            COLGATE-PALMOLIVE COMPANY
                           MEDIUM-TERM NOTE, SERIES D
                                  (Fixed Rate)

<TABLE>
<CAPTION>
<S>                                       <C>                                        <C>
ORIGINAL ISSUE DATE:                      INTEREST RATE:    %                        STATED MATURITY DATE:

INTEREST PAYMENT DATE(S)                  [ ] CHECK IF DISCOUNT NOTE
[ ] _______ and ______                                 Issue Price: %
[ ] Other:

INITIAL REDEMPTION                        INITIAL REDEMPTION                         * ANNUAL REDEMPTION
DATE:                                     PERCENTAGE:    %                             PERCENTAGE
                                                                                       REDUCTION:   %

HOLDER'S OPTIONAL REPAYMENT
DATE(S):
</TABLE>

-------------------
*If an Initial Redemption Date is specified above, (i) the Redemption Price will
 initially be the Initial Redemption Percentage specified above and shall
 decline at each anniversary of the Initial Redemption Date shown above by the
 Annual Redemption Percentage Reduction specified above until the Redemption
 Price is 100% of such principal amount, and (ii) this Note may be redeemed
 either in whole or from time to time in part except if the following box is
 marked, this Note may be redeemed in whole only [ ]. If no Initial Redemption
 Date is specified above, this Note may not be redeemed prior to Maturity.
<PAGE>

AUTHORIZED DENOMINATION:                  SPECIFIED CURRENCY:
[ ] $1,000 and integral
    multiples thereof
[ ] Other:

ADDENDUM ATTACHED                         OTHER ADDITIONAL PROVISIONS:
[ ] Yes
[ ] No

                                       2
<PAGE>

     Colgate-Palmolive Company, a Delaware corporation (the "Company", which
term includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay to , or registered assigns, the
Principal Amount of , on the Stated Maturity Date specified above (or any
Redemption Date or Repayment Date, each as defined on the reverse hereof, or any
earlier date of acceleration of maturity) (each such date being hereinafter
referred to as the "Maturity Date" with respect to the principal repayable on
such date) and to pay interest thereon (and on any overdue principal, premium
and/or interest to the extent legally enforceable) at the Interest Rate per
annum specified above, until the principal hereof is paid or duly made available
for payment.

     The Company will pay interest in arrears on each Interest Payment Date
specified above (each, an "Interest Payment Date"), commencing with the first
Interest Payment Date next succeeding the Original Issue Date specified above,
and on the Maturity Date; provided, however, that if the Original Issue Date
                          --------  -------
occurs between a Record Date (as defined below) and the next succeeding Interest
Payment Date, interest payments will commence on the second Interest Payment
Date next succeeding the Original Issue Date to the registered holder (the
"Holder") of this Note on the Record Date with respect to such second Interest
Payment Date. Interest on this Note will be computed on the basis of a 360-day
year of twelve 30-day months.

     Interest on this Note will accrue from, and including, the most recent
Interest Payment Date to which interest has been paid or duly provided for or,
from and including, the Original Issue Date if no interest has been paid or duly
provided for, to but excluding, such Interest Payment Date or the Maturity Date,
as the case may be (each, an "Interest Period"). The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the 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
fifteenth calendar day (whether or not a Business Day, as defined below)
immediately preceding such Interest Payment Date (the "Record Date"); provided,
                                                                      --------
however, that interest payable on the Maturity Date will be payable to the
-------
Person to whom the principal hereof and premium, if any, hereon shall be
payable. Any such interest not so punctually paid or duly provided for on any
Interest Payment Date ("Defaulted Interest") shall forthwith cease to be payable
to the Holder on the close of business on any 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 (the
"Special Record Date") for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to the Holder of this Note by the
Trustee not less than 10 calendar days prior to such Special Record Date or may
be paid at any time in any other lawful manner, all as more fully provided for
in the Indenture.

     Payment of principal, premium, if any, and interest in respect of this Note
due on the Maturity Date will be made in immediately available funds upon
presentation and surrender of this Note [(and, with respect to any applicable
repayment of this Note, upon delivery of a duly completed election form as
contemplated on the reverse hereof)] at the office of the Trustee maintained for
that purpose in the Borough of Manhattan, The City of New York, 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 debts. Payment of interest due on
any Interest Payment Date other than the Maturity Date will be made at the
aforementioned office of the Trustee or, at the option of the Company, by check
mailed to the address of the person entitled thereto as such address shall
appear in the Security Register maintained by the Trustee; provided, however,
                                                           --------  -------
that a Holder of [U.S.$10,000,000 or more in aggregate principal amount of Notes
(whether having identical or different terms and provisions) shall, at the
option of the Company, ] be entitled to receive interest payments on such
Interest Payment Date by wire transfer of immediately available funds if
appropriate wire transfer instructions have been received in writing by the
Trustee not less than 15 calendar days prior to such Interest Payment Date. Any
such wire transfer instructions received by the Trustee shall remain in effect
until revoked by such Holder.

     If any Interest Payment Date or the Maturity Date falls on a day that is
not a Business Day, the required payment of principal, premium, if any, and/or
interest shall be made on the next succeeding Business Day with the same force
and effect as if made on such Interest Payment Date or Maturity Date, as the
case may be, and no interest shall accrue with respect to such payment for the
period from and after such Interest Payment Date or the Maturity Date, as the
case may be, to the date of such payment on the next succeeding Business Day.

         As used herein, "Business Day" means, unless otherwise specified above,
any day, other than a Saturday or Sunday, that is neither a legal holiday nor a
day on which commercial banks are authorized or required by law,

                                       3
<PAGE>

regulation or executive order to close in The City of New York; provided,
however, that, with respect to non-United States dollar-denominated notes, the
day is also not a day on which commercial banks are authorized or required by
law, regulation or executive order to close in the Principal Financial Center,
as defined below, of the country issuing the specified currency or, if the
specified currency is euro, the day is also a day on which the Trans-European
Automated Real-Time Gross Settlement Express Transfer (TARGET) System is open.

     "Principal Financial Center" means, unless otherwise specified on the face
hereof, the capital city of the country issuing the specified currency except,
in each case, that with respect to United States dollars, Australian dollars,
Canadian dollars, Deutsche marks, Dutch guilders, Italian lire, Portuguese
escudos, South African rand and Swiss francs, the "Principal Financial Center"
will be The City of New York, Sydney and (solely in the case of the specified
currency) Melbourne, Toronto, Frankfurt, Amsterdam, Milan, London (solely in the
case of the Designated LIBOR Currency) Johannesburg and Zurich, respectively.

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

     Notwithstanding the foregoing, if an Addendum is attached hereto or
"Other/Additional Provisions" apply to this Note as specified above, this Note
shall be subject to the terms set forth in such Addendum or such
"Other/Additional Provisions".

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

                                       4
<PAGE>

         IN WITNESS WHEREOF, Colgate-Palmolive Company has caused this Note to
be duly executed by one of its duly authorized officers.

                                     COLGATE-PALMOLIVE COMPANY

                                     By: ________________________________
                                     Title:

Dated:

TRUSTEE'S CERTIFICATE OF AUTHENTICATION:

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

THE BANK OF NEW YORK,
as Trustee

By____________________________
         Authorized Signatory

                                       5
<PAGE>

                                [REVERSE OF NOTE]

                            COLGATE-PALMOLIVE COMPANY
                           MEDIUM-TERM NOTE, SERIES D
                                  (Fixed Rate)

     This Note is one of a duly authorized series of Debt Securities (the "Debt
Securities") of the Company issued and to be issued under a Senior Indenture,
dated as of September 15, 1992, as amended, modified or supplemented from time
to time (the "Indenture"), between the Company and The Bank of New York, as
trustee (the "Trustee", which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Debt Securities, and of the terms upon which the Debt Securities are, and
are to be, authenticated and delivered. This Note is one of the series of Debt
Securities designated as "Medium-Term Notes, Series D, Due One Year or More From
Date of Issue" (the "Notes"). All terms used but not defined in this Note or in
an Addendum hereto shall have the meanings assigned to such terms in the
Indenture or on the face hereof, as the case may be.

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

     Except as otherwise provided in the Indenture and as set forth below, the
Notes will be issued in global form only, registered in the name of the
Depositary or its nominee and ownership of the Notes shall be maintained in
book-entry form by the Depositary for the accounts of participating
organizations of the Depositary. If this Note is a global Note, this Note is
exchangeable only if (i) the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary for this global Note and a
successor depositary is not appointed by the Company within 60 days after the
Depositary notifies the Company, (ii) the Company in its sole discretion
determines that this global Note shall be exchangeable for certificated Notes of
this series in registered form or (iii) an Event of Default with respect to the
Notes represented hereby has occurred and is continuing.

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

     This Note will be subject to redemption at the option of the Company on any
date on or after the Initial Redemption Date, if any, specified on the face
hereof, in whole or from time to time in part in increments of U.S. $1,000
unless otherwise specified above (provided that any remaining principal amount
hereof shall be at least U.S. $1,000 unless otherwise specified above), at the
Redemption Price (as defined below), together with unpaid interest accrued
hereon to the date fixed for redemption (the "Redemption Date"), on written
notice given to the Holder hereof (in accordance with the provisions of the
Indenture) not more than 60 nor less than 30 calendar days prior to the
Redemption Date. In the event of redemption of this Note in part only, a new
Note of like tenor for the unredeemed portion hereof and otherwise having the
same terms and provisions as this Note shall be issued by the Company in the
name of the Holder hereof upon the presentation and surrender hereof.

     Unless otherwise specified above, the "Redemption Price" shall be the
Initial Redemption Percentage specified on the face hereof (as adjusted by the
Annual Redemption Percentage Reduction, if any, specified on the face hereof as
set forth below) multiplied by the principal amount of this Note to be redeemed.

     This Note may be subject to repayment by the Company at the option of the
Holder hereof on the Optional Repayment Date(s), if any, specified on the face
hereof, in whole or in part in increments of U.S. $1,000 (provided that any
remaining principal amount hereof shall be at least U.S. $1,000), at a repayment
price equal to 100% of the principal amount to be repaid, together with unpaid
interest accrued thereon to the date fixed for repayment (the "Repayment Date").
For this Note to be repaid in whole or in part at the option of the Holder
hereof, the Trustee must receive at its corporate trust office not more than 60
nor less than 30 calendar days prior to the Repayment Date, this Note with the
form entitled "Option to Elect Repayment" below duly completed. Exercise of such
repayment option by the Holder hereof shall be irrevocable. In the event of
repayment of this Note in part only, a

                                       6
<PAGE>

new Note of like tenor for the unrepaid portion hereof and otherwise having the
same terms and provisions as this Note shall be issued by the Company in the
name of the Holder hereof upon the presentation and surrender hereof.

     If the Discount Note box is checked above, the amount payable to the Holder
of this Note in the event of redemption, repayment or acceleration of maturity
will be equal to the sum of (i) the Issue Price specified on the face hereof
(increased by any accruals of the Discount, as defined below, and reduced by any
amounts of principal previously paid) and, in the event of any redemption of
this Note (if applicable), multiplied by the Initial Redemption Percentage (as
adjusted by the Annual Redemption Percentage Reduction, if applicable) and (ii)
any unpaid interest accrued hereon to the Redemption Date, Repayment Date or
date of acceleration of maturity, as the case may be. The difference between the
Issue Price specified above and 100% of the principal amount of this Note is
referred to herein as the "Discount".

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

     If an Event of Default shall occur and be continuing, the principal of the
Notes may be accelerated 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 any series of Debt Securities to be
adversely affected thereby at any time by the Company and the Trustee with the
consent of the Holders of a majority in aggregate principal amount of each
series of Debt Securities at the time outstanding, adversely affected thereby.
The Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the outstanding Debt Securities of
each series, on behalf of the Holders of Debt Securities of such series, 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.

     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 principal, premium, if any, and interest in
respect of this Note at the times, places and rate or formula, and in the coin
or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note may be registered on the Security Register of
the Company upon surrender of this Note for registration of transfer at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Security Registrar duly executed by,
the Holder hereof or by his attorney duly authorized in writing, and thereupon
one or more new Notes of Authorized Denominations and for the same aggregate
principal amount with the same terms and provisions, will be issued by the
Company to the designated transferee or transferees.

     The Notes are issuable only in registered form without coupons and, if
payable in U.S. dollars, only in denominations of U.S.$1,000 and any integral
multiple of U.S. $1,000. As provided in the Indenture and subject to certain
limitations therein set forth, Notes of this series are exchangeable for a like
aggregate principal amount of Notes of this series of a different authorized
denomination, as required by the Holder surrendering the same.

                                       7
<PAGE>

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

     Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Holder 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, except as required by law.

     THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF
LAW PRINCIPLES.

     Capitalized terms used herein without definition which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

                                       8
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>               <C>                                   <C>                          <C>
TEN COM           - as tenants in common                UNIF GIFT MIN ACT            - ________ Custodian ______
TEN ENT           - as tenants by the entireties                                         (Cust)
                                                                                     (Minor)
JT TEN            - as joint tenants with right of                                   Under Uniform Gifts to Minors Act
                    survivorship and not as tenants                                  ______________________
                    in common                                                                       (State)
</TABLE>

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

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

                                       9
<PAGE>

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY OR
           OTHER
IDENTIFYING NUMBER OF ASSIGNEE
---------------------------------------------

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

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

-------------------------------------------------------------------------------
this Note and all rights thereunder hereby irrevocably constituting and
appointing

-------------------------------------------------------------------------------
Attorney to transfer this Note on the books of the Company, with full power of
substitution in the premises.

Dated:

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

                                       10
<PAGE>

                           [OPTION TO ELECT REPAYMENT]

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

     For this Note to be repaid, the Trustee must receive at its corporate trust
office in the Borough of Manhattan, The City of New York, currently located at
[101 Barclay Street, New York, New York 10286] not more than 60 nor less than 30
calendar days prior to the Repayment Date, this Note with this "Option to Elect
Repayment" form duly completed.

     If less than the entire principal amount of this Note is to be repaid,
specify the portion hereof (which shall be increments of U.S. $1,000 unless
otherwise specified in the Note) (provided that any remaining principal amount
shall be at least U.S. $1,000 unless otherwise specified in the Note) which the
Holder elects to have repaid and specify the denomination or denominations
(which shall be U.S. $1,000 or an integral multiple thereof) of the Notes to be
issued to the Holder for the portion of this Note not being repaid (in the
absence of any such specification, one such Note will be issued for the portion
not being repaid).

Principal Amount
to be Repaid:    $----------------------   -------------------------------------

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

                                      11<PAGE>

                                                                    EXHIBIT 4.3

                                 [FACE OF NOTE]

IF THE REGISTERED OWNER OF THIS NOTE (AS INDICATED BELOW) IS THE DEPOSITORY
TRUST COMPANY OR A NOMINEE OF THE DEPOSITORY TRUST COMPANY, THIS NOTE IS A
GLOBAL SECURITY AND THE FOLLOWING LEGENDS APPLY:

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

THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

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

<TABLE>
<CAPTION>
<S>                                 <C>                                         <C>
REGISTERED                          CUSIP No.:                                  PRINCIPAL AMOUNT:
No. FLR-____                                                                        $
</TABLE>

                            COLGATE-PALMOLIVE COMPANY
                           MEDIUM-TERM NOTE, SERIES D
                                 (Floating Rate)

<TABLE>
<CAPTION>
<S>                                 <C>                                    <C>
INTEREST RATE BASIS                 ORIGINAL ISSUE DATE:                   STATED MATURITY DATE:
OR BASES:

     IF LIBOR:                        IF CMT RATE:
         [ ] LIBOR Reuters Page:        [    ] Telerate Page 7051
                                        [    ] Telerate Page 7052

         [ ] LIBOR Telerate Page:              [ ] Weekly Average
                                               [ ] Monthly Average
         Designated LIBOR
         Currency:

INDEX MATURITY:                     INITIAL INTEREST RATE:   %             INTEREST PAYMENT DATE(S):

INDEX CURRENCY:                     INITIAL INTEREST RESET DATE:           INTEREST RATE RESET PERIOD:

SPREAD (PLUS OR                     SPREAD MULTIPLIER:
MINUS):

INTEREST DETERMINATION              REGULAR RECORD DATES:
DATES:
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
<S>                                    <C>                                      <C>
MINIMUM INTEREST RATE:  %               MAXIMUM INTEREST RATE:  %               INTEREST RESET DATE(S):

INITIAL REDEMPTION                      INITIAL REDEMPTION                      *ANNUAL REDEMPTION
DATE:                                   PERCENTAGE:    %                        PERCENTAGE REDUCTION:   %

HOLDER'S OPTIONAL                       CALCULATION AGENT:                      [ ] CHECK IF DISCOUNT NOTE
REPAYMENT DATE(S):                                                              Issue Price    %

SPECIFIED CURRENCY:                     EXCHANGE RATE AGENT:

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

AUTHORIZED DENOMINATION:
[ ] $1,000 and integral multiples
     thereof
[ ] Other:

ADDENDUM ATTACHED
[ ] Yes
[ ] No

OTHER/ADDITIONAL PROVISIONS:
</TABLE>

-----------------
*If an Initial Redemption Date is specified above, (i) the Redemption Price will
 initially be the Initial Redemption Percentage specified above and shall
 decline at each anniversary of the Initial Redemption Date shown above by the
 Annual Redemption Percentage Reduction specified above until the Redemption
 Price is 100% of such principal amount, and (ii) this Note may be redeemed
 either in whole or from time to time in part except if the following box is
 marked, this Note may be redeemed in whole only [ ]. If no Initial Redemption
 Date is specified above, this Note may not be redeemed prior to Maturity.

                                        2
<PAGE>

     COLGATE-PALMOLIVE COMPANY, a Delaware corporation (the "Company", which
term includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay, to , or registered assigns, the
Principal Amount of , on the Stated Maturity Date specified above (or any
Redemption Date or Repayment Date, each as defined on the reverse hereof, or any
earlier date of acceleration of maturity) (each such date being hereinafter
referred to as the "Maturity Date" with respect to the principal repayable on
such date) and to pay interest thereon (and on any overdue principal, premium
and/or interest to the extent legally enforceable) at a rate per annum equal to
the Initial Interest Rate specified above until the Initial Interest Reset Date
specified above and thereafter at a rate determined in accordance with the
provisions specified above and on the reverse hereof or in an Addendum hereto
with respect to one or more Interest Rate Bases specified above until the
principal hereof is paid or duly made available for payment.

     The Company will pay interest in arrears on each Interest Payment Date
specified above (each, an "Interest Payment Date"), commencing with the first
Interest Payment Date next succeeding the Original Issue Date specified above,
and on the Maturity Date; provided, however, that if the Original Issue Date
                          --------  -------
occurs between a Record Date (as defined below) and the next succeeding Interest
Payment Date, interest payments will commence on the second Interest Payment
Date next succeeding the Original Issue Date to the registered holder (the
"Holder") of this Note on the Record Date with respect to such second Interest
Payment Date.

     Interest on this Note will accrue from, and including, the most recent
Interest Payment Date to which interest has been paid or duly provided for or,
from and including, the Original Issue Date if no interest has been paid or duly
provided for, to but excluding, such Interest Payment Date or the Maturity Date,
as the case may be (each, an "Interest Period"). The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the 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
fifteenth calendar day (whether or not a Business Day, as defined below)
immediately preceding such Interest Payment Date (the "Record Date"); provided,
                                                                      --------
however, that interest payable on the Maturity Date will be payable to the
-------
person to whom the principal hereof and premium, if any, hereon shall be
payable. Any such interest not so punctually paid or duly provided for on any
Interest Payment Date ("Defaulted Interest") shall forthwith cease to be payable
to the Holder on the close of business on any 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 (the "Special
Record Date") for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to the Holder of this Note by the Trustee
not less than 10 calendar days prior to such Special Record Date or may be paid
at any time in any other lawful manner, all as more fully provided for in the
Indenture.

     Payment of principal, premium, if any, and interest in respect of this Note
due on the Maturity Date will be made in immediately available funds upon
presentation and surrender of this Note [(and, with respect to any applicable
repayment of this Note, upon delivery of a duly completed election form as
contemplated on the reverse hereof)] at the office of the Trustee maintained for
that purpose in the Borough of Manhattan, The City of New York, 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 debts. Payment of interest due
on any Interest Payment Date other than the Maturity Date will be made at the
aforementioned office of the Trustee or, at the

                                       3
<PAGE>

option of the Company, by check mailed to the address of the person entitled
thereto as such address shall appear in the Security Register maintained by the
Trustee; provided, however, that a Holder of [U.S.$10,000,000 or more in
         --------  -------
aggregate principal amount of Notes (whether having identical or different terms
and provisions) shall, at the option of the Company,] be entitled to receive
interest payments on such Interest Payment Date by wire transfer of immediately
available funds if appropriate wire transfer instructions have been received in
writing by the Trustee not less than 15 calendar days prior to such Interest
Payment Date. Any such wire transfer instructions received by the Trustee shall
remain in effect until revoked by such Holder.

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

     As used herein, "Business Day" means, unless otherwise specified above, any
day, other than a Saturday or Sunday, that is neither a legal holiday nor a day
on which commercial banks are authorized or required by law, regulation or
executive order to close in The City of New York; provided, however, that with
                                                  --------  -------
respect to non-United States dollar-denominated notes, the day is also not a day
on which commercial banks are authorized or required by law, regulation or
executive order to close in the Principal Financial Center of the country
issuing the specified currency or, if the specified currency is euro, the day is
also a day on which the Trans-European Automated Real-Time Gross Settlement
Express Transfer (TARGET) System is open; provided, further, that, with respect
to floating rate notes as to which LIBOR is an applicable Interest Rate Basis,
the day is also a London Banking Day and that, with respect to floating rate
notes as to which EURIBOR is an applicable Interest Rate Basis, the day is also
a day on which the TARGET System is open.

     "London Banking Day" means a day on which commercial banks are open for
business, including dealings in the Designated LIBOR Currency, in London.

     "Principal Financial Center" means (1) the capital city of the country
issuing the specified currency, or (2) the capital city of the country to which
the Designated LIBOR Currency relates, except, in each case, that with respect
to United States dollars, Australian dollars, Canadian dollars, Deutsche marks,
Dutch guilders, Italian lire, Portuguese escudos, South African rand and Swiss
francs, the "Principal Financial Center" will be The City of New York, Sydney
and (solely in the case of the specified currency) Melbourne, Toronto,
Frankfurt, Amsterdam, Milan, London (solely in the case of the Designated LIBOR
Currency), Johannesburg and Zurich, respectively.

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

                                       4
<PAGE>

     Notwithstanding the foregoing, if an Addendum is attached hereto or
"Other/Additional Provisions" apply to this Note as specified above, this Note
shall be subject to the terms set forth in such Addendum or such
"Other/Additional Provisions".

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

                                       5
<PAGE>

         IN WITNESS WHEREOF, Colgate-Palmolive Company has caused this Note to
be duly executed by one of its duly authorized officers.

                                       COLGATE-PALMOLIVE COMPANY

                                       By ___________________________________
                                       Title:

Dated:

TRUSTEE'S CERTIFICATE OF AUTHENTICATION:

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

THE BANK OF NEW YORK,
as Trustee

By _______________________________________________
                 Authorized Signatory

                                       6
<PAGE>

                                [REVERSE OF NOTE]

                            COLGATE-PALMOLIVE COMPANY
                           MEDIUM-TERM NOTE, SERIES D
                                 (Floating Rate)

     This Note is one of a duly authorized series of Debt Securities (the "Debt
Securities") of the Company issued and to be issued under a Senior Indenture,
dated as of September 15, 1992, as amended, modified or supplemented from time
to time (the "Indenture"), between the Company and The Bank of New York, as
trustee (the "Trustee", which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Debt Securities, and of the terms upon which the Debt Securities are, and
are to be, authenticated and delivered. This Note is one of the series of Debt
Securities designated as "Medium-Term Notes, Series D, Due One Year or More From
Date of Issue" (the "Notes"). All terms used but not defined in this Note or in
an Addendum hereto shall have the meanings assigned to such terms in the
Indenture or on the face hereof, as the case may be.

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

     Except as otherwise provided in the Indenture and as set forth below, the
Notes will be issued in global form only, registered in the name of the
Depositary or its nominee and ownership of the Notes shall be maintained in
book-entry form by the Depositary for the accounts of participating
organizations of the Depositary. If this Note is a global note, this Note is
exchangeable only if (i) the Depositary notifies the Company that is unwilling
or unable to continue as Depositary for this global Note and a successor
depositary is not appointed by the Company with 60 days after the Depositary
notifies the Company, (ii) the Company in its sole discretion determines that
this global Note shall be exchangeable for certificated Notes of this series in
registered form or (iii) an Event of Default with respect to the Notes
represented hereby has occurred and is continuing.

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

     This Note will be subject to redemption at the option of the Company on any
date on or after the Initial Redemption Date, if any, specified on the face
hereof, in whole or from time to time in part in increments of U.S.$1,000 unless
otherwise specified above (provided that any remaining principal amount hereof
shall be at least U.S.$1,000 unless otherwise specified above), at the
Redemption Price (as defined below), together with unpaid interest accrued
hereon to the date fixed for redemption (the "Redemption Date"), on written
notice given to the Holder hereof (in accordance with the provisions of the
Indenture) not more than 60 nor less than 30 calendar days prior to the
Redemption Date. In the event of redemption of this Note in part only, a new
Note of like tenor for the unredeemed portion hereof and otherwise having the
same terms and provisions as this Note shall be issued by the Company in the
name of the Holder hereof upon the presentation and surrender hereof.

                                       7
<PAGE>

     Unless otherwise specified above, the "Redemption Price" shall be the
Initial Redemption Percentage specified on the face hereof (as adjusted by the
Annual Redemption Percentage Reduction, if any, specified on the face hereof as
set forth below) multiplied by the principal amount of this Note to be redeemed.

     This Note may be subject to repayment by the Company at the option of the
Holder hereof on the Optional Repayment Date(s), if any, specified on the face
hereof, in whole or in part in increments of U.S.$1,000 (provided that any
remaining principal amount hereof shall be at least U.S.$1,000), at a repayment
price equal to 100% of the principal amount to be repaid, together with unpaid
interest accrued thereon to the date fixed for repayment (the "Repayment Date").
For this Note to be repaid in whole or in part at the option of the Holder
hereof, the Trustee must receive at its corporate trust office not more than 60
nor less than 30 calendar days prior to the Repayment Date, this Note with the
form thereon entitled "Option to Elect Repayment" below duly completed. Exercise
of such repayment option by the Holder hereof shall be irrevocable. In the event
of repayment of this Note in part only, a new Note of like tenor for the
unrepaid portion hereof and otherwise having the same terms and provisions as
this Note shall be issued by the Company in the name of the Holder hereof upon
the presentation and surrender hereof.

     If the Discount Note box is checked above, the amount payable to the Holder
of this Note in the event of redemption, repayment or acceleration of maturity
of this Note will be equal to the sum of (i) the Issue Price specified on the
face hereof (increased by any accruals of the Discount, as defined below, and
reduced by any amounts of principal previously paid) and, in the event of any
redemption of this Note (if applicable), multiplied by the Initial Redemption
Percentage (as adjusted by the Annual Redemption Percentage Reduction, if
applicable) and (ii) any unpaid interest accrued hereon to the Redemption Date,
Repayment Date or date of acceleration of maturity, as the case may be. The
difference between the Issue Price specified above and 100% of the principal
amount of this Note is referred to herein as the "Discount."

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

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

          (i) Unless the Interest Category of this Note is specified on the face
     hereof as a "Floating Rate/Fixed Rate Note" or an "Inverse Floating Rate
     Note" or the face hereof specifies that either "Other/Additional
     Provisions" or an Addendum hereto applies, in each case, relating to a
     different interest rate formula, this Note shall be designated as a

                                       8
<PAGE>

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

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

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

     Except as set forth above or specified on the face hereof or in an Addendum
hereto, the interest rate in effect on each day shall be (i) if such day is an
Interest Reset Date, the interest rate determined as of the Interest
Determination Date (as defined below) immediately preceding such Interest Reset
Date or (ii) if such day is not an Interest Reset Date, the interest rate
determined as of the Interest Determination Date immediately preceding the most
recent Interest Reset Date; provided, however, that the interest rate in effect
                            --------  -------
for the period, if any, from the Original Issue Date to the Initial Interest
Reset Date shall be the Initial Interest Rate. If any Interest Reset Date would
otherwise be a day that is not a Business Day, such Interest Reset Date shall be
postponed to the next succeeding Business Day, except that if LIBOR or EURIBOR
is an applicable Interest Rate Basis and such Business Day falls in the next
succeeding calendar month, such Interest Reset Date shall be the immediately
preceding Business Day. In addition, if the Treasury Rate is an applicable
Interest Rate Basis and the Interest Determination Date would otherwise fall on
an Interest Reset Date, then such Interest Reset Date will be postponed to the
next succeeding Business Day.

                                       9
<PAGE>

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

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

     CD Rate. If an Interest Rate Basis for this Note is specified on the face
     -------
hereof as the CD Rate, the CD Rate shall be determined as of the applicable
Interest Determination Date (a "CD Rate Interest Determination Date") as the
rate on such date for negotiable United States dollar certificates of deposit
having the Index Maturity as published in H.15(519) (as defined below) under the
heading "CDs (secondary market)", or, if not published by 3:00 P.M., New York
City time, on the related Calculation Date, the rate on such CD Rate Interest
Determination Date for negotiable United States dollar certificates of deposit
of the Index Maturity as published in H.15 Daily Update (as hereinafter
defined), or such other recognized electronic source used for the purpose of
displaying such rate, under the caption "CDs (secondary market)." If such rate
is not yet published in H.15(519), H.15 Daily Update or another recognized
electronic source by 3:00 P.M., New York City time, on the related Calculation
Date, then the CD Rate on such CD Rate Interest Determination Date will be
calculated by the Calculation Agent specified on the face hereof and will be the
arithmetic mean of the secondary market offered rates as of 10:00 A.M., New York
City time, on such CD Rate Interest Determination Date, of three leading
non-bank dealers in negotiable United States dollar certificates of deposit in
The City of New York selected by the Calculation Agent for negotiable United
States dollar certificates of deposit of major United States money market banks
for negotiable United States dollar certificates of

                                       10
<PAGE>

deposit with a remaining maturity closest to the Index Maturity in an amount
that is representative for a single transaction in that market at that time;
provided, however, that if the dealers so selected by the Calculation Agent are
--------  -------
not quoting as mentioned in this sentence, the CD Rate determined as of such CD
Rate Interest Determination Date will be the CD Rate in effect on such CD Rate
Interest Determination Date.

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

     "H.15 Daily Update" means the daily update of H.15(519), available through
the world-wide-web site of the Board of Governors of the Federal Reserve System
at http://www.bog.frb.fed.us/releases/h15/update, or any successor site or
publication.

     CMT Rate. If an Interest Rate Basis for this Note is specified on the face
     --------
hereof as the CMT Rate, the CMT Rate shall be determined as of the applicable
Interest Determination Date (a "CMT Rate Interest Determination Date") as the
CMT Rate plus or minus the Spread, if any, or multiplied by the Spread
Multiplier, if any, as specified above. "CMT Rate" means with respect to any CMT
Rate Interest Determination Date:

     (i) if CMT Telerate Page 7051 is specified above, the percentage equal to
the yield for United States Treasury securities at "constant maturity" having
the Index Maturity specified above as published in H.15(519) under the caption
"Treasury Constant Maturities", as the yield is displayed on Bridge Telerate,
Inc., or any successor service, on page 7051, or any other page as may replace
page 7051 on that service ("Telerate Page 7051"), for such CMT Rate Interest
Determination Date. If such rate does not appear on Telerate Page 7051, the CMT
Rate on such CMT Rate Interest Determination Date will be the percentage equal
to the yield for United States Treasury securities at "constant maturity" having
the Index Maturity specified above and for such CMT Rate Interest Determination
Date as published in H.15(519) under the caption "Treasury Constant Maturities".
If such rate does not appear in H.15(519), the CMT Rate on such CMT Rate
Interest Determination Date will be the rate on such CMT Rate Interest
Determination Date for the period of the Index Maturity specified above as may
then be published by either the Federal Reserve System Board of Governors or the
United States Department of the Treasury that the Calculation Agent determines
to be comparable to the rate which would otherwise have been published in
H.15(519). If the Federal Reverse System Board of Governors or the United States
Department of the Treasury does not publish a yield on United States Treasury
securities at "constant maturity" having the Index Maturity specified above for
such CMT Rate Interest Determination Date, the CMT Rate on such CMT Rate
Interest Determination Date will be calculated by the Calculation Agent and will
be a yield to maturity based on the arithmetic mean of the secondary market bid
prices at approximately 3:30 P.M., New York City time, on such CMT Rate Interest
Determination Date of three leading primary United States government securities
dealers in The City of New York (each, a "Reference Dealer") selected by the
Calculation Agent from five Reference Dealers and eliminating the highest
quotation (or, in the event of equality, one of the highest) and the lowest
quotation (or, in the event of equality, one of the lowest) for United States
Treasury securities with an original maturity equal to the Index Maturity
specified above, a remaining term to maturity no more than 1 year shorter than
the Index Maturity specified above and in a principal amount that is
representative for a single transaction in such securities in such market at
such time. If fewer than five but more than two such prices are provided as
requested, the CMT Rate on such CMT Rate Interest Determination Date will be
calculated by the Calculation Agent and will be based on the arithmetic mean of
the

                                       11
<PAGE>

bid prices obtained and neither the highest nor the lowest of such quotations
will be eliminated. If fewer than three prices are provided as requested, the
CMT Rate on such CMT Rate Interest Determination Date will be calculated by the
Calculation Agent and will be a yield to maturity based on the arithmetic mean
of the secondary market bid prices as of approximately 3:30 P.M., New York City
time, on such CMT Rate Interest Determination Date of three Reference Dealers
selected by the Calculation Agent from five Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation (or, in the event of
equality, one of the highest) and the lowest quotation (or, in the event of
equality, one of the lowest) for United States Treasury securities with an
original maturity greater than the Index Maturity specified above, a remaining
term to maturity closest to the Index Maturity specified above, and in a
principal amount that is representative for a single transaction in such
securities in such market at such time. If fewer than five but more than two
such prices are provided as requested, the CMT Rate on such CMT Rate Interest
Determination Date will be calculated by the Calculation Agent and will be based
on the arithmetic mean of the bid prices obtained and neither the highest nor
the lowest of the quotations will be eliminated; provided, however, that if
fewer than three such prices are provided as requested, the CMT Rate determined
as of such CMT Rate Interest Determination Date will be the CMT Rate in effect
on such CMT Rate Interest Determination Date. If two such United States Treasury
securities with an original maturity greater than the Index Maturity specified
above have remaining terms to maturity equally close to the Index Maturity
specified above, the quotes for the Treasury security with the shorter original
term to maturity will be used.

     (ii) if CMT Telerate Page 7052 is specified above, the percentage equal to
the one-week or one-month, as specified above, average yield for United States
Treasury securities at "constant maturity" having the Index Maturity specified
above as published in H.15(519) opposite the caption "Treasury Constant
Maturities", as such yield is displayed on Bridge Telerate, Inc., or any
successor service, on page 7052, or any other page as may replace page 7052 on
that service ("Telerate Page 7052"), for the week or month, as applicable, ended
immediately preceding the week or month, as applicable, in which such CMT Rate
Interest Determination Date falls. If such rate does not appear on Telerate Page
7052, the CMT Rate on such CMT Rate Interest Rate Determination Date will be the
percentage equal to the one-week or one-month, as specified above, average yield
for United States Treasury securities at "constant maturity" having the Index
Maturity specified above and for the week or month, as applicable, preceding
such CMT Rate Interest Determination Date as published in H.15(519) opposite the
caption "Treasury Constant Maturities". If such rate does not appear in
H.15(519), the CMT Rate on such CMT Rate Interest Determination Date will be the
one-week or one-month, as specified above, average yield for United States
Treasury securities at "constant maturity" having the Index Maturity specified
above as otherwise announced by the Federal Reserve Bank of New York for the
week or month, as applicable, ended immediately preceding the week or month, as
applicable, in which such CMT Rate Interest Determination Date falls. If the
Federal Reserve Bank of New York does not publish a one-week or one-month, as
specified above, average yield on United States Treasury securities at "constant
maturity" having the Index Maturity specified above for the applicable week or
month, the CMT Rate on such CMT Rate Interest Determination Date will be
calculated by the Calculation Agent and will be a yield to maturity based on the
arithmetic mean of the secondary market bid prices at approximately 3:30 P.M.,
New York City time, on such CMT Rate Interest Determination Date of three
Reference Dealers selected by the Calculation Agent from five such Reference
Dealers selected by the Calculation Agent and eliminating the highest quotation
(or, in the event of equality, one of the highest) and the lowest

                                       12
<PAGE>

quotation (or, in the event of equality, one of the lowest) for United States
Treasury securities with an original maturity equal to the Index Maturity
specified above, a remaining term to maturity no more than 1 year shorter than
the Index Maturity specified above and in a principal amount that is
representative for a single transaction in such securities in such market at
such time. If fewer than five but more than two such prices are provided as
requested, the CMT Rate on such CMT Rate Interest Determination Date will be
calculated by the Calculation Agent and will be based on the arithmetic mean of
the bid prices obtained and neither the highest nor the lowest of such
quotations will be eliminated. If fewer than three prices are provided as
requested, the CMT Rate on such CMT Rate Interest Determination Date will be
calculated by the Calculation Agent and will be a yield to maturity based on the
arithmetic mean of the secondary market bid prices as of approximately 3:30
P.M., New York City time, on such CMT Rate Interest Determination Date of three
Reference Dealers selected by the Calculation Agent from five Reference Dealers
selected by the Calculation Agent and eliminating the highest quotation (or, in
the event of equality, one of the highest) and the lowest quotation (or, in the
event of equality, one of the lowest) for United States Treasury securities with
an original maturity greater than the Index Maturity specified above, a
remaining term to maturity closest to the Index Maturity specified above and in
a principal amount that is representative for a single transaction in such
securities in such market at such time. If fewer than five but more than two
such prices are provided as requested, the CMT Rate on such CMT Rate Interest
Determination Date will be calculated by the Calculation Agent and will be based
on the arithmetic mean of the bid prices obtained and neither the highest or the
lowest of such quotations will be eliminated; provided, however, that if fewer
than three such prices are provided as requested, the CMT Rate determined as of
such CMT Rate Interest Determination Date will be the CMT Rate in effect on such
CMT Rate Interest Determination Date. If two United States Treasury securities
with an original maturity greater than the Index Maturity specified above have
remaining terms to maturity equally close to the Index Maturity specified above,
the quotes for the United States Treasury security with the shorter original
remaining term to maturity will be used.

     Commercial Paper Rate. If an Interest Rate Basis for this Note is specified
     ---------------------
on the face hereof as the Commercial Paper Rate, the Commercial Paper Rate shall
be determined as of the applicable Interest Determination Date (a "Commercial
Paper Rate Interest Determination Date") as the Money Market Yield (as defined
below) on such date of the rate for commercial paper having the Index Maturity
as published in H.15(519) under the caption "Commercial Paper-Nonfinancial" or,
if not so published by 3:00 P.M., New York City time, on the related Calculation
Date, the Money Market Yield of the rate on such Commercial Paper Rate Interest
Determination Date for commercial paper having the Index Maturity as published
in H.15 Daily Update, or such other recognized electronic source used for the
purpose of displaying such rate, under the caption "Commercial
Paper-Nonfinancial." If such rate is not yet published in H.15(519), H.15 Daily
Update or another recognized electronic source by 3:00 P.M., New York City time,
on such Calculation Date, then the Commercial Paper Rate on such Commercial
Paper Rate Interest Determination Date will be calculated by the Calculation
Agent and shall be the Money Market Yield of the arithmetic mean of the offered
rates at approximately 11:00 A.M., New York City time, on such Commercial Paper
Rate Interest Determination Date of three leading dealers of United States
dollar commercial paper in The City of New York selected by the Calculation
Agent for commercial paper having the Index Maturity placed for industrial
issuers whose bond rating is "Aa", or the equivalent, from a nationally
recognized statistical rating organization; provided, however, that if the
                                            --------  -------
dealers so selected by the Calculation Agent are not quoting as mentioned in
this sentence, the Commercial Paper Rate determined as of such

                                       13
<PAGE>

Commercial Paper Rate Interest Determination Date will be the Commercial Paper
Rate in effect on such Commercial Paper Rate Interest Determination Date.

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

      Money Market Yield =              D X 360               X 100
                            ---------------------------------
                                     360 - (D X M)

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

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

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

                                       14
<PAGE>

Federal Funds Rate Interest Determination Date shall be calculated by the
Calculation Agent and will be the arithmetic mean of the rates for the last
transaction in overnight United States dollar federal funds arranged by three
leading brokers of United States dollar federal funds transactions in The City
of New York selected by the Calculation Agent, prior to 9:00 A.M., New York City
time, on such Federal Funds Rate Interest Determination Date; provided, however,
                                                              --------  -------
that if the brokers so selected by the Calculation Agent are not quoting as
mentioned in this sentence, the Federal Funds Rate determined as of such Federal
Funds Rate Interest Determination Date will be the Federal Funds Rate in effect
on such Federal Funds Rate Interest Determination Date.

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

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

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

                                       15
<PAGE>

mentioned in this sentence, LIBOR determined as of such LIBOR Interest
Determination Date shall be LIBOR in effect on such LIBOR Interest Determination
Date.

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

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

     EURIBOR. If an Interest Rate Basis for this Note is specified on the face
     -------
hereof as EURIBOR, EURIBOR shall be determined as of the applicable Interest
Determination Date (a "EURIBOR Interest Determination Date") as (i) the rate for
deposits in euros as sponsored, calculated and published jointly by the European
Banking Federation and ACI - The Financial Market Association, or any company
established by the joint sponsors for purposes of compiling and publishing those
rates, having the Index Maturity, commencing on the applicable Interest Reset
Date, as that rate appears on Bridge Telerate, Inc., or any successor service,
on page 248 or any other page as may replace that specified page on that service
("Telerate Page 248") as of 11:00 A.M., Brussels time, on the applicable
Interest Determination Date, or (ii) if the rate referred to in clause (i) does
not appear on Telerate Page 248, or is not so published by 11:00 A.M., Brussels
time, on the applicable Interest Determination Date, the rate calculated by the
Calculation Agent as the arithmetic mean of at least two quotations obtained by
the Calculation Agent after requesting the principal Euro-zone (as defined
below) offices of four major banks in the Euro-zone interbank market, in the
European interbank market, to provide the Calculation Agent with its offered
quotation for deposits in euros for the period of the Index Maturity, commencing
on the applicable Interest Reset Date, to prime banks in the Euro-zone interbank
market at approximately 11:00 A.M., Brussels time, on the applicable Interest
Determination Date and in a principal amount not less than the equivalent of
U.S. $1 million in euros that is representative for a single transaction in euro
in that market at that time, or (iii) if fewer than two quotations referred to
in clause (ii) are so provided, the rate on the applicable Interest
Determination Date calculated by the Calculation Agent as the arithmetic mean of
the rates quoted at approximately 11:00 A.M., Brussels time, on such Interest
Determination Date by four major banks in the Euro-zone for loans in euro to
leading European banks, having the Index Maturity, commencing on the applicable
Interest Reset Date and in a principal amount not less than the equivalent of
U.S. $1 million in euros that is representative for a single transaction in
euros in that market at that time, or (iv) if the banks so selected by the
Calculation Agent are not quoting as mentioned in clause (iii), EURIBOR in
effect on the applicable Interest Determination Date.

         "Euro-zone" means the region comprised of member states of the European
Union that adopt the single currency in accordance with the treaty establishing
the European Community, as amended by the treaty on European Union.

                                       16
<PAGE>

     Prime Rate. If an Interest Rate Basis for this Note is specified on the
     ----------
face hereof as the Prime Rate, the Prime Rate shall be determined as of the
applicable Interest Determination Date (a "Prime Rate Interest Determination
Date") as the rate on such date as such rate is published in H.15(519) under the
caption "Bank Prime Loan" or, if not published by 3:00 P.M., New York City time,
on the related Calculation Date, the rate on such Prime Rate Interest
Determination Date as published in H.15 Daily Update, or such other recognized
electronic source used for the purpose of displaying such rate, under the
caption "Bank Prime Loan", or if such rate is not yet published in H.15(519),
H.15 Daily Update or another recognized electronic source by 3:00 P.M., New York
City time, on the related Calculation Date, the Prime Rate determined as of such
Prime Rate Interest Determination Date shall be calculated by the Calculation
Agent as the arithmetic mean of the rates of interest publicly announced by at
least four banks that appear on the Reuters Screen US PRIME 1 Page (as defined
below) as such bank's prime rate or base lending rate as of 11:00 A.M., New York
City time, on such Prime Rate Interest Determination Date. If fewer than four
such rates so appear on the Reuters Screen US PRIME 1 Page for such Prime Rate
Interest Determination Date, then the Prime Rate determined as of such Prime
Rate Interest Determination Date shall be calculated by the Calculation Agent as
the arithmetic mean of the prime rates or base lending rates quoted on the basis
of the actual number of days in the year divided by a 360-day year as of the
close of business on such Prime Rate Interest Determination Date by three major
banks in The City of New York selected by the Calculation Agent; provided,
                                                                 --------
however, that if the banks or trust companies so selected by the Calculation
-------
Agent are not quoting as mentioned in this sentence, the Prime Rate determined
as of such Prime Rate Interest Determination Date will be the Prime Rate in
effect on such Prime Rate Interest Determination Date.

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

     Treasury Rate. If an Interest Rate Basis for this Note is specified on the
     -------------
face hereof as the Treasury Rate, the Treasury Rate shall be determined as of
the applicable Interest Determination Date (a "Treasury Rate Interest
Determination Date") as the rate from the auction held on such Treasury Rate
Interest Determination Date (the "Auction") of direct obligations of the United
States ("Treasury Bills") having the Index Maturity under the caption
"INVESTMENT RATE" on the display on Bridge Telerate, Inc. (or any successor
service) on page 56 (or any other page as may replace such page on such service)
("Telerate Page 56") or page 57 (or any other page as may replace such page on
such service) ("Telerate Page 57") or, if not so published by 3:00 P.M., New
York City time, on the related Calculation Date, the Bond Equivalent Yield (as
defined below) of the rate for such Treasury Bills as published in H.15 Daily
Update, or other recognized electronic source used for the purpose of displaying
the applicable rate, under the caption "U.S. Government Securities/Treasury
Bills/Auction High." If such rate is not so published in H.15 Daily Update or
another recognized electronic source by 3:00 P.M., New York City time, on the
related Calculation Date, the Treasury Rate determined as of such Treasury Rate
Interest Determination Date shall be Bond Equivalent Yield of the auction rate
of such Treasury Bills as announced by the United States Department of the
Treasury. In the event that such auction rate is not so announced by the United
States Department of Treasury on such Calculation Date, or if no such Auction is
held, then the Treasury Rate determined as of such Treasury Rate Interest
Determination Date shall be the Bond Equivalent Yield of the rate on such
Treasury Rate Interest Determination Date of

                                       17
<PAGE>

Treasury Bills having the Index Maturity as published in H.15(519) under the
caption "U.S. Government Securities/Treasury Bills/Secondary Market" or, if not
yet published by 3:00 P.M., New York City time, on the related Calculation Date,
the rate on such Treasury Rate Interest Determination Date of such Treasury
Bills as published in H.15 Daily Update, or such other recognized electronic
source used for the purpose of displaying such rate, under the caption "U.S.
Government Securities/Treasury Bills/Secondary Market." If such rate is not yet
published in H.15(519), H.15 Daily Update or another recognized electronic
source by 3:00 P.M., New York City time, on the related Calculation Date, then
the Treasury Rate determined as of such Treasury Rate Interest Determination
Date shall be calculated by the Calculation Agent as the Bond Equivalent Yield
of the arithmetic mean of the secondary market bid rates, as of approximately
3:30 P.M., New York City time, on such Treasury Rate Interest Determination
Date, of three primary United States government securities dealers selected by
the Calculation Agent, for the issue of Treasury Bills with a remaining maturity
closest to the Index Maturity; provided, however, that if the dealers so
                               --------  -------
selected by the Calculation Agent are not quoting as mentioned in this sentence,
the Treasury Rate determined as of such Treasury Rate Interest Determination
Date shall be the Treasury Rate in effect on such Treasury Rate Interest
Determination Date.

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

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

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

     Any provision contained herein, including the determination of an Interest
Rate Basis, the specification of an Interest Rate Basis, calculation of the
interest rate applicable to this Note, its Interest Payment Dates or any other
matter relating thereto may be modified as specified in an Addendum relating
hereto if so specified above.

     Notwithstanding the foregoing, the interest rate hereon shall not be
greater than the Maximum Interest Rate, if any, or less than the Minimum
Interest Rate, if any, specified above. In addition to any maximum Interest Rate
applicable hereto pursuant to the above provisions, the interest rate on this
Note will in no event be higher than the maximum rate permitted by New York law,
as the same may be modified by the United States law of general application.

     The Calculation Agent shall calculate the interest rate hereof in
accordance with the foregoing on or before each Calculation Date. At the request
of the Holder hereof, the Calculation Agent will provide to the Holder hereof
the interest rate hereon then in effect and, if determined, the interest rate
which will become effective as of the next Interest Reset Date.

         The "Calculation Date", if applicable, pertaining to any Interest
Determination Date shall be the earlier of (i) the tenth calendar day after such
Interest Determination Date or, if such day is not a Business Day, the next
succeeding Business Day or (ii) the Business Day immediately

                                       18
<PAGE>

preceding the applicable Interest Payment Date or the Maturity Date, as the case
may be. At the request of the Holder hereof, the Calculation Agent will provide
to the Holder hereof the interest rate hereon then in effect and, if determined,
the interest rate that will become effective as a result of a determination made
for the next succeeding Interest Reset Date.

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

     All percentages resulting from any calculation on this Note shall be
rounded to the nearest one hundred-thousandth of a percentage point, with five
one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or
 .09876545) would be rounded to 9.87655% (or .0987655), and all amounts used in
or resulting from such calculation on this Note shall be rounded to the nearest
cent (with one-half cent being rounded upwards).

     If an Event of Default shall occur and be continuing, the principal of the
Notes may be accelerated 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 any series of Debt Securities to be
adversely affected thereby at any time by the Company and the Trustee with the
consent of the Holders of a majority in aggregate principal amount of each
series of Debt Securities at the time outstanding, adversely affected thereby.
The Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the outstanding Debt Securities of
each series, on behalf of the Holders of Debt Securities of such series, 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.

     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 principal, premium, if any, and interest in
respect of this Note at the times, places and rate or formula, and in the coin
or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note may be registered on the Security Register of
the Company upon surrender of this Note for registration of transfer at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, duly endorsed by, or accompanied by a written instrument of

                                       19
<PAGE>

transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or by his attorney duly authorized in writing,
and thereupon one or more new Notes of Authorized Denominations and for the same
aggregate principal amount with the same terms and provisions, will be issued by
the Company to the designated transferee or transferees.

     The Notes are issuable only in registered form without coupons and, if
payable in U.S. dollars, only in denominations of U.S.$1,000 and any integral
multiple of U.S.$1,000. As provided in the Indenture and subject to certain
limitations therein set forth, Notes of this series are exchangeable for a like
aggregate principal amount of Notes of this series of a different 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
Holder 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, except as required by law.

     THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF
LAW PRINCIPLES.

     Capitalized terms used herein without definition which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

                                       20
<PAGE>

                                  ABBREVIATIONS

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

<TABLE>
<CAPTION>
<S>           <C>                                                        <C>
TEN COM       - as tenants in common                                     UNIF GIFT MIN ACT - ______ Custodian _____
TEN ENT       - as tenants by the entireties                                                 (Cust)           (Minor)
JT TEN        - as joint tenants with right of                                        under Uniform Gifts to Minors
                survivorship and not as tenants                                            Act_____________________
                in common                                                                            (State)
</TABLE>
     Additional abbreviations may also be used though not in the above list.

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

                                       21
<PAGE>

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY OR
            OTHER
IDENTIFYING NUMBER OF ASSIGNEE
 ---------------------------------------------

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

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

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

-------------------------------------------------------------------------------
this Note and all rights thereunder hereby irrevocably constituting and
appointing

---------------------------------------------------------------------- Attorney
to transfer this Note on the books of the Company, with full power of
substitution in the premises.

Dated: ---------------------          -----------------------------------------

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

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

                                       22
<PAGE>

                           [OPTION TO ELECT REPAYMENT]

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

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

     For this Note to be repaid, the Trustee must receive at its corporate trust
office in the Borough of Manhattan, The City of New York, currently located at
[101 Barclay Street, New York, New York 10286] not more than 60 nor less than 30
calendar days prior to the Repayment Date, this Note with this "Option to Elect
Repayment" form duly completed.

     If less than the entire principal amount of this Note is to be repaid,
specify the portion hereof (which shall be increments of U.S.$1,000 (provided
that any remaining principal amount shall be at least U.S.$1,000 unless
otherwise specified in the Note) which the Holder elects to have repaid and
specify the denomination or denominations (which shall be U.S.$1,000 or an
integral multiple thereof) of the Notes to be issued to the Holder for the
portion of this Note not being repaid (in the absence of any such specification,
one such Note will be issued for the portion not being repaid).

Principal Amount
to be Repaid:  $--------------------------   ----------------------------------

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

                                       23

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