Document:

Employment Agreement

EXHIBIT 10.1 
 
As of June 1, 2003 
 
David J. Barrett 
[ADDRESS ON FILE]

 
Dear David: 
 
This letter constitutes all of the terms of the Employment
Agreement between you and Hearst-Argyle Television, Inc. (“Hearst-Argyle”). It is subject to the approval of the Board of Directors of Hearst-Argyle. The terms are as follows: 
 
1. Legal Name of Employee:    David J. Barrett 
 
2. Mailing Address of Employee:    [ON
FILE] 
 
3. Title of Position;
Duties:    President and Chief Executive Officer. 
 
You agree to carry out the duties performed by the President and Chief Executive Officer of Hearst-Argyle consistent with past practices and such other duties as may be assigned to you by the Board of Directors of
Hearst-Argyle. 
 
4. Length of
Employment.    The term of this Agreement will start on June 1, 2003 and continue through December 31, 2005 (the “Term”). 
 
5. Salary.    You will receive a base salary for all services to Hearst-Argyle as follows: 
 

	 	a)	 	$900,000 for the period from June 1, 2003 through May 31, 2004; 

 

	 	b)	 	$960,000 for the period from June 1, 2004 through May 31, 2005; and 

 

	 	c)	 	the annual amount of $960,000 prorated for the period from June 1,2004 through December 31, 2005. 

 
The salary
will be paid according to Hearst-Argyle’s payroll practices, but not less frequently than twice a month. You acknowledge that you are not entitled to overtime pay. 
 
In addition it is understood that you are eligible to receive a bonus up to the sum of: (x) $900,000 with
respect to calendar year 2003; (y) $960,000 with respect to calendar year 2004; and (z) $960,000 with respect to calendar year 2005. The criteria for the bonus will be set by the subcommittee of the Compensation Committee of the Board of Directors
of Hearst-Argyle, at its sole discretion. 
 
The
bonus is payable only for as long as you work for Hearst-Argyle, and will be payable only at the end of a complete bonus cycle and is not proratable, except in the event of your death, when it will be proratable. 
 
In determining the amount of your bonus, the books and records
of Hearst-Argyle are absolute and final and not open to dispute by you. Hearst-Argyle will pay any bonus due you by March 31 of the year following the year for which the bonus is applicable. 
 
In addition to the foregoing compensation, effective June 1,
2003 and for the remainder of the Term, Hearst-Argyle will also provide you with certain other benefits which shall include the following items: an automobile allowance or reimbursement, executive life insurance, club membership allowance or
reimbursement, Supplemental Retirement Plan (SERP) benefits, executive medical benefits and such other benefits offered or provided to other members of the Executive Group of The Hearst Corporation. Such benefits shall not be less than the benefits
provided to you with respect to such items as of the effective date of this Agreement. 
 
6. Exclusive Services.    You agree that you will work only for Hearst-Argyle, and 
 

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will not render services or give business advice, paid or otherwise, to anyone else, without getting
Hearst-Argyle’s written approval. However, you may participate as a member of the board of directors of other organizations and in charitable and community organizations, but only if such activities do not conflict or interfere with your work
for Hearst-Argyle, and if such work is approved in advance by Hearst-Argyle, which approval will not be unreasonably withheld. You acknowledge that your services will be unique, special and original and will be financially and competitively valuable
to Hearst-Argyle, and that your violation of this paragraph will cause Hearst-Argyle irreparable harm for which money damages alone would not adequately compensate Hearst-Argyle. Accordingly, you acknowledge that if you violate this paragraph,
Hearst-Argyle has the right to apply for and obtain injunctive relief to stop such violation (without the posting of any bond, and you hereby waive any bond-posting requirements in connection with injunctive relief), in addition to any other
appropriate rights and remedies it might lawfully have. 
 
7. No Conflicts.    You agree that there is no reason why you cannot make this Agreement with Hearst-Argyle, including, but not limited to, having a contract, written or otherwise, with another employer.

 
8. Termination of Employment.

 
(a) Hearst-Argyle has the right to end this
Agreement: 
 

	 	i)	 	Upon your death; or 

 

	 	ii)	 	For cause, which shall mean (A) indictment for a felony, (B) failure to carry out, or neglect or misconduct in the performance of, your duties hereunder or a breach
of this Agreement; (C) willful failure to comply with 

 

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applicable laws with respect to the conduct of Hearst-Argyle’s business, (D) theft, fraud or embezzlement resulting in gain or personal
enrichment, directly or indirectly, to you at Hearst-Argyle’s expense, (E) addiction to an illegal drug, (F) conduct or involvement in a situation that brings, or may bring, you into public disrespect, tends to offend the community or any group
thereof, or embarrasses or reflects unfavorably on Hearst-Argyle’s reputation, or (G) willful failure to comply with the reasonable directions of the Board of Directors of Hearst-Argyle; or 

 

	 	iii)	 	Without cause pursuant to Paragraph 8(b) below. 

 
(b) This Agreement may be terminated (i) by Hearst-Argyle or its successor without cause or (ii) by you within 60 days of a Change in
Control (as defined below) (or, notwithstanding Paragraph 8(a)(i), by you or your legal representative within such 60-day period, if you die while still employed), provided that, in the case of either clauses (i) or (ii) of this Paragraph 8(b), you
or your legal representative execute and deliver a general release in favor of Hearst-Argyle in the form reasonably required by Hearst-Argyle, and such release has become irrevocable, and if such termination occurs, then you (or your estate, in the
case of your death) will receive the payments and benefits under this Agreement for the remainder of the Term as if no termination had occurred; it being expressly acknowledged and agreed that, with respect to bonuses, and in lieu of the bonuses
contemplated by the third paragraph of Paragraph 5, you (or your estate, in the case of your death) shall be entitled to receive (at the times that would have applied absent termination) (x) any accrued but unpaid bonus, and (y) for any future
unpaid bonuses that otherwise would have been payable during the Term, 
 

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bonuses payable at fifty percent (50%) of the maximum potential bonus. Notwithstanding the foregoing, if
you breach Paragraphs 10 or 11, Hearst-Argyle’s obligations under this Paragraph 8(b) shall immediately cease, and you (and your estate, in the case of your death) shall have no further rights under this Agreement. For purposes of this
Agreement, a Change in Control shall be deemed to occur if, and only if, Hearst-Argyle ceases to be controlled by or under common control with The Hearst Corporation or its affiliates. 
 
9. Payment for Plugs.    You acknowledge that you are familiar with Sections 317
and 508 of the Communications Act of 1934 and are aware that it is illegal without full disclosure to promote products or services in which you have a financial interest. You agree not to participate in any such promotion under any circumstances and
understand that to do so is a violation of law as well as a cause for termination. Also, you agree that you will not become involved in any financial situation which might compromise or cause a conflict with your obligations under this paragraph or
this Agreement without first talking with Hearst-Argyle about your intentions and obtaining Hearst-Argyle’s written consent. 
 
10. Confidentiality.    You agree that while employed by Hearst-Argyle and after this Agreement is terminated
or expires, you will not use or divulge or in any way distribute to any person or entity, including a future employer, any confidential information of any nature relating to Hearst-Argyle’s business. You will surrender to Hearst-Argyle at the
end of your employment all its property in your possession. If you breach this paragraph, Hearst-Argyle has the right to apply for and obtain injunctive relief to stop such a violation, in addition to its other legal remedies, as outlined in
Paragraph 6. 
 
You agree to keep the terms of this
Agreement confidential from everybody except 
 

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your professional advisors and family. 
 
11. Non-Solicitation; Non-Hire.    You agree that for two (2) years after the
expiration or termination of this Agreement, you will not hire, solicit, aid or suggest to any (i) employee of Hearst-Argyle, its subsidiaries or affiliates, (ii) independent contractor or other service provider or (iii) any customer, agency or
advertiser of Hearst-Argyle, its subsidiaries or affiliates to terminate such relationship or to stop doing business with Hearst-Argyle, its subsidiaries or affiliates. 
 
If you violate this provision, Hearst-Argyle will have the same right to injunctive relief as outlined in
Paragraph 6, as well as any other remedies it may have. If any court of competent jurisdiction finds any part of this paragraph unenforceable as to its duration, scope or geographic area, it shall be deemed amended to conform to the scope that would
permit it to be enforced. 
 
12. Officer;
Director.    Upon request, you agree that you will serve as an officer or director, in addition to your present position, of Hearst-Argyle or any affiliated entity, without additional pay. 
 
13. Continuation of
Agreement.    This Agreement and your employment shall terminate upon the expiration of the Term (unless terminated earlier pursuant to Paragraph 8 hereof), provided that if Hearst-Argyle gives you written notice of extension
then this Agreement shall continue on a month-to-month basis until the earlier of (i) the commencement of a renewal or extension agreement between you and Hearst-Argyle, or (ii) termination of this Agreement by either party on fifteen days written
notice to the other. 
 
14. Assignment of
Agreement.    Subject to Paragraph 8(b) hereof, Hearst-Argyle 
 

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has the right to transfer this Agreement to a successor, to a purchaser of substantially all of its assets
or its business or to any parent, subsidiary, or affiliated corporation or entity and you will be obligated to carry out the terms of this Agreement for that new owner or transferee. You have no right to assign this Agreement, and any attempt to do
so is null and void. 
 
15. State
Law.    This Agreement will be interpreted under the laws of the State of New York, without regard to conflicts or choice of law rules. 
 
16. No Other Agreements.    This Agreement is the only agreement between you and Hearst-Argyle. It supersedes
any other agreements, amendments or understandings you and Hearst-Argyle may have had (including the Employment Agreement dated as of June 1, 2001 between you and Hearst-Argyle). This Agreement may be amended only in a written document signed by
both parties. 
 
17.
Approvals.    In any situation requiring the approval of Hearst-Argyle, such approval must be given by the Board of Directors of Hearst-Argyle. 
 
18. Dispute Resolution.    Hearst-Argyle and you agree that any claim which either
party may have against the other under local, state or federal law including, but not limited to, matters of discrimination, matters arising out of the termination or alleged breach of this Agreement or the terms, conditions or termination of
employment, will be submitted to mediation and, if mediation is unsuccessful, to final and binding arbitration in accordance with Hearst-Argyle’s Dispute Settlement Procedure (“Procedure”), of which you have received a copy. During
the pendency of any claim under this Procedure, Hearst-Argyle and you agree to make no statement orally or in writing regarding the existence of the claim or the facts forming the basis of such claim, or any statement orally or in writing which
could impair or disparage 
 

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the personal or business reputation of Hearst-Argyle or you. The Procedure is hereby incorporated by
reference into this Agreement. 
 
19.
Correspondence.    All correspondence between you and Hearst-Argyle will be written and sent by certified mail, return receipt requested, or by personal delivery or courier, to the following addresses: 
 

	 If to Hearst-Argyle:
	  	 General Counsel
	  	 	  	 
	 	  	 Hearst-Argyle Television, Inc.
	  	 	  	 
	 	  	 888 Seventh Avenue
	  	 	  	 
	 	  	 27th Floor
	  	 	  	 
	 	  	 New York, New York 10106
	  	 	  	 

 

	 If to Employee:
	  	 David J. Barrett
	  	 	  	 
	 	  	 [ADDRESS ON FILE]
	  	 	  	 

 
Either
party may change its address in writing sent to the above addresses. 
 
20. Severability.    If a court decides that any part of this Agreement is unenforceable, the rest of the Agreement will survive. 
 
21. Originals of Agreement.    This Agreement may be signed in any number of
counterparts, each of which shall be considered an original. 
 

	 HEARST-ARGYLE TELEVISION, INC. 

	
	 By:
	 	 /s/    JONATHAN C.
MINTZER        

	
	 	 	 Vice President, Secretary

	 Title:
	 	 and General Counsel

	
	 By:
	 	 /s/    DAVID J. BARRETT
        

	 	 	 David J. Barrett

 

8<PAGE>

                                                                     Exhibit 4.2

                       THE BANK OF NEW YORK COMPANY, INC.
       5.95% Junior Subordinated Deferrable Interest Debentures, Series F

No. AV-1
$360,825,000

     THE BANK OF NEW YORK COMPANY, INC., a corporation organized and existing
under the laws of New York (hereinafter called the "Corporation", which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to Bank One, National Association, as
Property Trustee for BNY Capital V, a statutory business trust formed under the
laws of the State of Delaware (hereinafter called the "Issuer Trust"), or
registered assigns, the principal sum of Three Hundred and Sixty Million Eight
Hundred Twenty Five Thousand Dollars ($360,825,000) on May 1, 2033. The
Corporation further promises to pay interest on said principal sum from April
30, 2003 or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, quarterly (subject to deferral as set forth
herein) in arrears on February 1, May 1, August 1 and November 1 of each year,
commencing August 1, 2003, at the rate of 5.95% per annum, together with
Additional Sums, if any, as provided in Section 10.6 of the Indenture, until the
principal hereof is paid or duly provided for or made available for payment;
provided that any overdue principal, premium or Additional Sums and any overdue
installment of interest shall bear Additional Interest at the rate of 5.95% per
annum (to the extent that the payment of such interest shall be legally
enforceable), compounded quarterly, from the dates such amounts are due until
they are paid or made available for payment, and such interest shall be payable
on demand. The amount of interest payable for any period less than a full
interest period shall be computed on the basis of a 360-day year of twelve
30-day months and the actual days elapsed in a partial month in such period. The
amount of interest payable for any full interest period shall be computed by
dividing the applicable rate per annum by four. 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 Security (or
one or more Predecessor Securities) is registered at the close of business on
the Regular Record Date for such interest installment which shall be the
fifteenth day (whether or not a Business Day) immediately preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided
for shall forthwith cease to be payable to the Holder on such Regular Record
Date and may either be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this series
not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided
in said Indenture.

     So long as no Event of Default has occurred and is continuing, the
Corporation shall have the right, at any time during the term of this Security,
from time to time to defer the payment of interest on this Security for up to 20
consecutive quarterly interest payment periods with respect to each deferral
period

<PAGE>

(each an "Extension Period"), at the end of which the Corporation shall pay all
interest then accrued and unpaid, including any Additional Interest, as provided
below; provided, however, that no Extension Period shall extend beyond the
Stated Maturity of the principal of this Security, as then in effect, and no
such Extension Period may end on a date other than an Interest Payment Date; and
provided, further, that during any such Extension Period, the Corporation shall
not (i) declare or pay any dividends or distributions on, or redeem, purchase,
acquire or make a liquidation payment with respect to, any of the Corporation's
capital stock, or (ii) make any payment of principal of or interest or premium,
if any, on or repay, repurchase or redeem any debt securities of the Corporation
that rank pari passu in all respects with, or junior in interest to, this
Security (other than (A) repurchases, redemptions or other acquisitions of
shares of capital stock of the Corporation in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of
any one or more employees, officers, directors or consultants, in connection
with a dividend reinvestment or stockholder stock purchase plan or in connection
with the issuance of capital stock of the Corporation (or securities convertible
into or exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (B) as a
result of an exchange or conversion of any class or series of the Corporation's
capital stock (or any capital stock of a Subsidiary of the Corporation) for any
class or series of the Corporation's capital stock or of any class or series of
the Corporation's indebtedness for any class or series of the Corporation's
capital stock, (C) the purchase of fractional interests in shares of the
Corporation's capital stock pursuant to the conversion or exchange provisions of
such capital stock or the security being converted or exchanged, (D) any
declaration of a dividend in connection with any Rights Plan, or the issuance of
rights, stock or other property under any Rights Plan, or the redemption or
repurchase of rights pursuant thereto, or (E) any dividend in the form of stock,
warrants, options or other rights where the dividend stock or the stock issuable
upon exercise of such warrants, options or other rights is the same stock as
that on which the dividend is being paid or ranks pari passu with or junior to
such stock). Prior to the termination of any such Extension Period, the
Corporation may further defer the payment of interest; provided that no
Extension Period shall exceed 20 consecutive quarterly interest payment periods,
extend beyond the Stated Maturity of the principal of this Security or end on a
date other than an Interest Payment Date. Upon the termination of any such
Extension Period and upon the payment of all accrued and unpaid interest and any
Additional Interest then due on any Interest Payment Date, the Corporation may
elect to begin a new Extension Period, subject to the above conditions. No
interest shall be due and payable during an Extension Period, except at the end
thereof, but each installment of interest that would otherwise have been due and
payable during such Extension shall bear Additional Interest (to the extent that
the payment of such interest hall be legally enforceable) at the rate of 5.95%
per annum, compounded quarterly and calculated as set forth in the first
paragraph of this Security, from the dates on which amounts would otherwise have
been due and payable until paid or made available for payment. The Corporation
shall give the Holder of this Security and the Trustee notice of its election to
begin any Extension Period at least one Business Day prior to the next
succeeding Interest Payment Date on which interest on this Security would be
payable but for such deferral or, so long as such Securities are held by Bank
One, National Association, as Property Trustee for the Issuer Trust, at least
one Business Day prior to the earlier of (i) the next succeeding date on which
Distributions on the Capital Securities of such Issuer Trust would be

<PAGE>

payable but for such deferral, and (ii) the date on which the Property Trustee
of such Issuer Trust is required to give notice to any securities exchange or
other applicable self-regulatory organization or to holders of such Capital
Securities of the record date or the date such Distributions are payable.

     Payment of the principal of (and premium, if any) and interest on this
Security will be made at the office or agency of the Corporation maintained for
that purpose in 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.

     The indebtedness evidenced by this Security is, to the extent provided in
the Indenture, subordinate and junior in right of payment to the prior payment
in full of all Senior Indebtedness, and this Security is issued subject to the
provisions of the Indenture with respect thereto. Each Holder of this Security,
by accepting the same, (i) agrees to and shall be bound by such provisions, (ii)
authorizes and directs the Trustee on his or her behalf to take such actions as
may be necessary or appropriate to effectuate the subordination so provided, and
(iii) appoints the Trustee his or her attorney-in-fact for any and all such
purposes. Each Holder hereof, by his or her acceptance hereof, waives all notice
of the acceptance of the subordination provisions contained herein and in the
Indenture by each holder of Senior Indebtedness, whether now outstanding or
hereafter incurred, and waives reliance by each such holder upon said
provisions.

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

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

<PAGE>

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

                                          The Bank of New York Company, Inc.

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

Attest:

--------------------------------------
Name:
Title: Notary Public
Commission Expires:

<PAGE>

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

         Dated: April 30, 2003

                                          BANK ONE, NATIONAL ASSOCIATION,
                                                    as Trustee

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

<PAGE>

     This Security is one of a duly authorized issue of securities of the
Corporation (herein called the "Securities"), issued and to be issued in one or
more series under the Junior Subordinated Indenture, dated as of December 25,
1996 (hereinafter called the "Indenture"), between the Corporation and BANK ONE,
NATIONAL ASSOCIATION (f/k/a The First National Bank of Chicago) , as Trustee
(herein called 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 Corporation, the Trustee, the
holders of Senior Indebtedness and the Holders of the Securities, and of the
terms upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof limited in
aggregate principal amount to $360,825,000.

     All terms used in this Security that are defined in the Indenture or in the
Amended and Restated Trust Agreement, dated as of April 30, 2003 (as modified,
amended or supplemented from time to time, the "Trust Agreement"), relating to
the Issuer Trust, among the Corporation, as Depositor and the Trustees named
therein, shall have the meanings assigned to them in the Indenture or the Trust
Agreement, as the case may be.

     The Corporation may at any time, at its option, and subject to the terms
and conditions of Article XI of the Indenture, (i) on or after May 1, 2008,
redeem this Security in whole at any time or in part from time to time, and (ii)
prior to May 1, 2008, and within 90 days following the occurrence and
continuation of a Tax Event or Capital Treatment Event, redeem this Security in
whole (but not in part), in each case at a Redemption Price equal to the accrued
and unpaid interest on this Security to the date fixed for redemption, plus 100%
of the principal amount hereof.

     In the event of redemption of this Security in part only, a new Security or
Securities of this series for the unredeemed portion hereof will be issued in
the name of the Holder hereof upon the cancellation hereof.

     The Indenture contains provisions for satisfaction and discharge of the
entire indebtedness of this Security upon compliance by the Corporation with
certain conditions set forth in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
Corporation and the Trustee at any time to enter into a supplemental indenture
or indentures for the purpose of modifying in any manner the rights and
obligations of the Corporation and of the Holders of the Securities, with the
consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series to be affected by such supplemental
indenture. The Indenture also contains provisions permitting Holders of
specified percentages in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Securities of such series,
to waive compliance by the Corporation 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 Security shall be conclusive and binding
upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in

<PAGE>

exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, if an Event
of Default with respect to the Securities of this series at the time Outstanding
occurs and is continuing, then and in every such case the Trustee or the Holders
of not less than 25% in aggregate principal amount of the Outstanding Securities
of this series may declare the principal amount of all the Securities of this
series to be due and payable immediately, by a notice in writing to the
Corporation (and to the Trustee if given by Holders), provided that, if, upon an
Event of Default, the Trustee or such Holders fail to declare the principal of
all the Outstanding Securities of this series to be immediately due and payable,
the holders of at least 25% in aggregate Liquidation Amount of the Capital
Securities then Outstanding shall have the right to make such declaration by a
notice in writing to the Corporation and the Trustee; and upon any such
declaration the principal amount of and the accrued interest (including any
Additional Interest) on all the Securities of this series shall become
immediately due and payable; provided that the payment of principal and interest
(including any Additional Interest) on such Securities shall remain subordinated
to the extent provided in Article XIII of the Indenture.

     No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Corporation, which
is absolute and unconditional, to pay the principal of (and premium, if any) and
interest (including any Additional Interest) on this Security at the times,
place and rate, and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registrable in the Securities Register,
upon surrender of this Security for registration of transfer at the office or
agency of the Corporation maintained under Section 10.2 of the Indenture for
such purpose, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Corporation and the Securities Registrar
duly executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Securities of this series, of like tenor,
of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of $25 and any integral multiple of $25 in excess
thereof. As provided in the Indenture and subject to certain limitations therein
set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

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

     Prior to due presentment of this Security for registration of transfer, the
Corporation, the Trustee and any agent of the Corporation or the Trustee may
treat the Person in whose name this Security is registered as the owner hereof
for all

<PAGE>

purposes, whether or not this Security be overdue, and neither the Corporation,
the Trustee nor any such agent shall be affected by notice to the contrary.

     The Corporation and, by its acceptance of this Security or a beneficial
interest therein, the Holder of, and any Person that acquires a beneficial
interest in, this Security agree that for United States Federal, state and local
tax purposes it is intended that this Security constitute indebtedness.

     This Security shall be governed by, and construed in accordance with, the
laws of the State of New York.

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