Document:

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                                                                    EXHIBIT 10.1

                       LIMITED LIABILITY COMPANY AGREEMENT

        THIS LIMITED LIABILITY COMPANY AGREEMENT (this "Agreement") made this
17th day of March, 2005, is entered into by and between TRIMEDIA ENTERTAINMENT
GROUP, INC., a Delaware corporation with an address of 1080 N. Delaware Avenue,
8th Floor, Philadelphia, PA 19125 ("TRIMEDIA") and INTERNATIONAL EQUITIES GROUP,
INC., a Florida corporation with an address of 9 Fiesta Way, Fort Lauderdale, Fl
33301 ("IEG") (each a "MEMBER" and collectively, the "MEMBERS").

        The Members hereby form a limited liability company pursuant to and in
accordance with the Delaware Limited Liability Company Act, as amended from time
to time (the "Act "), and hereby agree as follows:

1.      NAME. The name of the limited liability company is Battle Rap, LLC (the
        "Company").

2.      TERM. The term of the Company shall continue until the Company is
        dissolved. The Company shall be dissolved and its affairs wound up, upon
        the first to occur of the following events:

        (a)     the sale of all or substantially all of the Company's assets;

        (b)     the unanimous vote of the Members; or

        (c)     judicial dissolution of the Company as provided for in the Act.

3.      PURPOSE. The purpose of the Company shall be to undertake one or more
        development projects in the entertainment industry, including without
        limitation development of the Battle Rap video brand for entertainment
        content, including online interactive gaming, merchandise, film and
        music productions and television programming and other business
        opportunities. The foregoing enumerated objectives and purposes shall
        not be limited or restricted by reference to, or inference from, the
        terms of any other portion of this Agreement, and shall be regarded as
        independent. They are intended to be and shall be construed as powers as
        well as purposes and objects of the Company and shall be in addition to
        and not in limitation of the general powers of limited liability
        companies under the laws of the State.

4.      MEMBERS. The names and the business, residence, or mailing addresses of
        the Member are as set forth in the heading of this Operating Agreement.

5.      POWERS. The business and affairs of the Company shall be managed by the
        Members. The Members shall have the power to do any and all acts
        necessary or convenient to or for the furtherance of the purposes
        described herein, including all powers, statutory or otherwise,
        possessed by members under the Act. Except as expressly provided herein,
        any action by the Members shall require the consent of Members holding
        than 50% greater/ aggregate Percentage Interest.

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6.      CAPITAL CONTRIBUTIONS. Each of the initial Members shall contribute
        capital to the Company as follows: TRIMEDIA's Capital Contribution shall
        be in the form of 2,000,000 shares of TRIMEDIA's common stock, which
        shall be immediately distributed to IEG or its designees, and IEG's
        Capital Contribution shall be through the assignment of all intellectual
        property rights to the "Battle Rap" concept, including without
        limitation the existing "Battle Rap" video gaming project, and $300,000
        in cash or credit for expenses paid on behalf of the Company.

7.      PERCENTAGE OWNERSHIP. The percentage ownership interest ("Percentage
        Interest") in the Company of each Member shall be as follows:

                IEG                                90%
                TRIMEDIA                           10%
                                                  ---
                TOTAL                             100%
                                                  ===

8.      ALLOCATION OF PROFITS AND LOSSES. The Company's profits and losses shall
        be allocated among the Members according to their respective Percentage
        Interests.

9.      DISTRIBUTIONS. Distributions of Available Cash Flow shall be made to the
        Members at the times and in the aggregate amounts determined by the
        Members, but in any event no less often than quarterly. Distributions
        shall be made to the Members according to their respective Percentage
        Interests. "AVAILABLE CASH FLOW" shall mean the Company's cash receipts
        from operations in a particular period, and excluding without limitation
        receipts from (i) capital contributions, or (ii) a financing or
        refinancing of Company assets or other loans to the Company, less cash
        expenditures paid or payable with respect to such period and less any
        reserves established in the discretion of the Managers.

10.     TRIMEDIA OPTION. During the first sixty (60) days following the date
        hereof, TRIMEDIA shall have the option, at any time and from time to
        time, to purchase up to an additional 39.9% Percentage Interest for an
        aggregate Capital Contribution of $300,000. The additional Percentage
        Interest purchased by TRIMEDIA upon exercise of the option shall be
        equal to 39.9% times a fraction, the numerator of which is the Capital
        Contribution made by TRIMEDIA upon such exercise and the denominator of
        which is $300,000. By way of example, if TRIMEDIA elects to make a
        Capital Contribution of $200,000, it will receive a 26.6% increase in
        its Percentage Interest (39.9% times $200,000/$300,000), from 10% to
        36.6%. The option shall be exercisable by written notice of exercise
        from TRIMEDIA to the Company, accompanied by payment of the applicable
        Capital Contribution. Upon exercise of the option in whole or in part,
        this Limited Liability Company Agreement shall be amended to (i) to
        reflect the additional Percentage Interest owned by TRIMEDIA, and (ii)
        to otherwise read in full in the form attached hereto as Exhibit A. In
        connection with any such exercise, IEG hereby appoints TRIMEDIA as its
        attorney in fact to effect the amendments set forth in the preceding
        sentence.

11.     LIABILITY OF MEMBERS. The Members shall not have any liability for the
        obligations or liabilities of the Company except to the extent provided
        in the Act.

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12.     GOVERNING LAW. This Agreement shall be governed by, and construed under,
        the laws of the State of Delaware, without regard to the law of conflict
        of laws, all rights and remedies being governed by said laws.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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        IN WITNESS WHEREOF, the undersigned, intending to be legally bound
hereby, have duly executed this Operating Agreement as of the 17th day of March,
2005.

                                             TRIMEDIA ENTERTAINMENT GROUP, INC.

                                             By: /s/ Christopher Schwartz
                                                 -------------------------------
                                                 Christopher Schwartz, CEO

                                             INTERNATIONAL EQUITIES GROUP, INC.

                                             By: /s/Joseph Safina
                                                 -------------------------------
                                                 Joseph Safina, CEO

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                                                                       Exhibit A
                                                                       ---------

                              AMENDED AND RESTATED
                               OPERATING AGREEMENT
                                       OF
                                 BATTLE RAP, LLC

        THIS OPERATING AGREEMENT (this "AGREEMENT") of Battle Rap, LLC (the
"COMPANY") is entered into and shall be effective as of the 17th day of March,
2005 (the "EFFECTIVE DATE"), as amended through ______________, 2005, by and
between TRIMEDIA ENTERTAINMENT GROUP, INC. ("TRIMEDIA") and INTERNATIONAL
EQUITIES GROUP, INC. ("IEG") (each a "MEMBER" and collectively, the "MEMBERS"),
on the following terms and conditions.

                                    RECITALS

        WHEREAS, the Company was formed by the filing of a Certificate of
Organization with the Department of State of the State of Delaware on January
25, 2005;

        WHEREAS, the Members desire to set forth in this Agreement the terms of
their understandings and agreement concerning the management and operation of
the Company.

        NOW, THEREFORE, incorporating the entire background herein by reference,
the parties hereto, intending to be legally bound, hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

        1.1     Definitions. Capitalized terms used in this Agreement and not
defined elsewhere herein shall have the following meanings:

        "ACT" means the Delaware Limited Liability Company Act, as amended from
time to time.

        "ADDITIONAL MEMBER" means a Member other than TRIMEDIA and IEG or a
Substituted Member.

        "AFFILIATE" means, as to any Person, any other Person controlled by,
under the control of, or under common control with, such Person, or any Person
who is an officer, director, manager, general partner or trustee of, or serves
in a similar capacity with respect to, the specified Person or of which the
specified Person is an officer, director, manager, general partner or trustee or
serves in a similar capacity.

        "AGREEMENT" means this Operating Agreement of Battle Rap, LLC, as
amended from time to time.

        "AVAILABLE CASH FLOW" shall mean the Company's cash receipts from
operations in a particular period, and excluding without limitation receipts
from (i) capital contributions, or (ii) a financing or refinancing of Company
assets or other loans to the Company, less cash expenditures paid or payable

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with respect to such period and less any reserves established in the discretion
of the Managers.

        "BANKRUPT" means, with respect to any Person, a Person that makes an
assignment for the benefit of creditors; files a voluntary petition in
bankruptcy; is adjudicated a bankrupt or insolvent or has entered against it an
order for relief in any bankruptcy or insolvency Proceedings which remains in
force for more than 90 days; files an answer or other pleading admitting or
failing to contest the material allegations of a petition filed against it in
any Proceeding of this nature; seeks, consents to or acquiesces in the
appointment of a trustee, receiver or liquidator of such Person or of all or any
substantial part of its properties; does not have dismissed within 120 days
after its commencement, any Proceeding against such Person seeking
reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief under any statute, law or regulation; or, if within 90 days
after the appointment without its consent of a trustee, receiver or liquidator
of such Person or of all or any substantial part of its properties, the
appointment is not vacated or stayed or if, within 90 days after the expiration
of any such stay, the appointment is not vacated.

        "BOARD OF MANAGERS" means the group of Persons appointed pursuant to
Section 4.4 hereof and in whom the management and control of the Company and its
business and affairs is vested, subject to and in accordance with the terms of
this Agreement.

        "CAPITAL ACCOUNT" means the account to be established and maintained by
the Company for each Member in accordance with Section 6.1.

        "CAPITAL CONTRIBUTION" means, with respect to any Member, the amount of
cash, or the value (as reasonably determined by the Managers) of property, which
a Member has contributed to the Company.

        "CERTIFICATE" has the meaning set forth in Section 2.1.

        "CODE" means the Internal Revenue Code of 1986, as amended from time to
time.

        "COMPANY MINIMUM GAIN" shall have the same meaning as "PARTNERSHIP
MINIMUM GAIN" has under Regulations Section 1.704-2(b)(2).

        "DEPARTMENT OF STATE" means the Department of State of the State of
Delaware.

        "DISTRIBUTION" means a transfer of cash or other Company assets
described in either Article7 or Article13 that is made to a Member or former
Member.

        "EFFECTIVE DATE" has the meaning set forth in the preamble of this
Agreement.

        "FAIR MARKET VALUE" shall mean, as to any asset, the value that a
willing buyer would pay a willing seller, based on all of the relevant facts and
circumstances, including, in the case of Units, factors such as discounts for
nonmarketability, minority interests, liquidation preferences, and restrictions
on transferability, which determination of Fair Market Value shall be binding on
all parties absent manifest error. Fair Market Value shall be determined by the
Company's accountants; provided that the Fair Market Value of Units shall be
determined by an independent appraiser experienced in the valuation of privately

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held companies selected by the Company and reasonably satisfactory to the Member
whose Units are being valued.

        "FISCAL YEAR" shall have the meaning set forth in Section 9.1.

        "FORMER MEMBER" has the meaning set forth in Section 10.4.

        "GROSS ASSET VALUE" shall mean, with respect to any asset, such asset's
adjusted basis for federal income tax purposes, except as adjusted by the
Managers as provided herein.

        "MAJORITY" or "MAJORITY IN INTEREST" means, with respect to the Managers
or Members as a whole, those Managers or Members entitled to cast a majority of
votes entitled to vote on the matter in question.

        "MANAGERS" means those Persons appointed by the respective Members to
the Board of Managers.

        "MEMBER" means each of TRIMEDIA and IEG and any Additional Members or
Substituted Members admitted to the Company pursuant to Article 3 or Article10
of this Agreement. Reference to a "Member" shall refer to any one of the Members
without distinction unless otherwise indicated.

        "MEMBER NONRECOURSE DEBT" shall have the same meaning as "PARTNER
NONRECOURSE DEBT" has under Regulations Section 1.704-1(a)(2).

        "MEMBER NONRECOURSE DEBT MINIMUM GAIN" shall have the same meaning as
"PARTNER NONRECOURSE DEBT MINIMUM GAIN" has under Regulations
Section 1.704-2(i)(2).

        "MEMBER NONRECOURSE DEDUCTIONS" shall have the same meaning as "PARTNER
NONRECOURSE DEDUCTIONS" has under Regulations Section 1.704-2(i)(1).

        "MEMBERSHIP INTERESTS" mean the ownership interest of a Member in the
Company from time to time, including the right of such Member to any and all
Distributions (liquidating and otherwise) and allocations of Net Profit(s) and
Net Loss(es) to which such Member may be entitled, as provided in this Agreement
and in the Act, together with the management and participation rights devolving
on such Member by virtue of its status as a "member" under the Act and as
specifically set forth in this Agreement, and the obligations of such Member to
comply with all the terms and provisions of this Agreement and of the Act.
Membership Interests may be segmented into and/or expressed as a percentage of
various rights and/or obligations, as provided herein.

        "NET PROFIT(S)" and "NET LOSS(ES)" shall mean, for each fiscal period,
an amount equal to the Company's taxable income or loss for such period,
determined in accordance with Section 703(a) of the Code (for this purpose, all
items of income, gain, loss or deduction required to be stated separately
pursuant to Section 703(a)(1) of the Code shall be included in taxable income or
loss) with the following adjustments:

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                (i)     Such taxable income or loss shall be increased by the
amount of all income during such period that is exempt from U.S. federal income
tax and not otherwise taken into account in computing Net Profit or Net Loss
pursuant to this paragraph;

                (ii)    Such taxable income or loss shall be decreased by the
amount of all expenditures made by the Company during such period which are
described in Section 705(a)(2)(B) or treated as so described pursuant to
Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into
account in computing Net Profit or Net Loss pursuant to this paragraph;

                (iii)   In the event that the Gross Asset Value of any Company
asset is adjusted pursuant to Section 6.2 of this Agreement, the amount of such
adjustments shall be treated as an item of gain or loss from the disposition of
such asset and shall be taken into account for purposes of computing Net Profit
or Net Loss;

                (iv)    Gain or loss resulting from any disposition of property
with respect to which gain or loss is recognized for federal income tax purposes
shall be computed by reference to the Gross Asset Value of the property disposed
of, notwithstanding that the adjusted tax basis of such property differs from
its Gross Asset Value; and

                (v)     Any items that are specially allocated pursuant to the
provisions of Section 8.3 shall not be taken into account in computing Net
Profit or Net Loss.

        "NOTICE" shall mean notification in writing as set forth in Section
16.1.

        "OFFERED UNITS" has the meaning set forth in Section 10.3.

        "OFFERING MEMBER" has the meaning set forth in Section 10.3.

        "PERCENTAGE INTEREST" means, with respect to any Member, the percentage
Membership Interest held by such Member, expressed as the ratio of the number of
Units held by such Member to the number of all Units outstanding at any given
time.

        "PERSON" means an individual, corporation, partnership, limited
liability company, limited liability partnership, joint venture, trust or
unincorporated organization, joint stock company or other similar organization,
government or any political subdivision thereof, or any other legal entity.

        "PRIME RATE" shall mean the Prime Rate from time to time published in
the Wall Street Journal.

        "PROCEEDING" means any judicial or administrative trial, hearing or
other activity, civil, criminal or investigative, and appeals or reviews of any
of the foregoing, the result of which may be that a court, arbitrator or
governmental agency may enter a judgment, order, decree or other determination
which, if not appealed and reversed, would be binding upon the Company, a Member
or other Person subject to the jurisdiction of such court, arbitrator or
governmental agency.

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        "REGULATIONS" shall mean the regulations promulgated under the Code, as
such regulations may be amended from time to time (including corresponding
provisions of succeeding regulations).

        "REGULATORY ALLOCATIONS" has the meaning set forth in Section 8.3(f).

        "REMAINING MEMBERS" has the meaning set forth in Section 10.3.

        "REORGANIZATION" has the meaning set forth in Section 5.4.

        "SECRETARY OF STATE" shall mean the Secretary of State of the State of
Delaware.

        "STATE" shall mean the State of Delaware.

        "SUBSTITUTED MEMBER" has the meaning set forth in Section 10.6.

        "TAX DISTRIBUTIONS" has the meaning set forth in Section 7.1.

        "TAX PAYMENT LOAN" has the meaning set forth in Section 7.5.

        "TAXABLE YEAR" means the taxable year of the Company as determined
pursuant to Section 706 of the Code.

        "TERM" has the meaning set forth in Section 2.4.

        "TERMINATION DATE" has the meaning set forth in Section 2.4.

        "TRANSFER" means any sale, assignment, transfer, exchange, mortgage,
pledge, grant, hypothecation, or other transfer, absolute or as security or
encumbrance (including dispositions by operation of law).

        "TRIGGERING EVENT" has the meaning set forth in Section 10.4.

        "UNITS" shall mean the Units into which the Membership Interests of the
Company are divided from time to time, which Units shall be issued to the
Members in exchange for Capital Contributions as determined by the Managers in
accordance with Article 3 below.

        "UNRETURNED CAPITAL CONTRIBUTION" with respect to any Member means all
cash paid toward such Member's Capital Contribution, reduced by distributions
made to such Member pursuant to Section 7.3.

        "WITHHOLDING TAX ACT" has the meaning set forth in Section 7.5.

                                    ARTICLE 2
                                   THE COMPANY

        2.1     Formation of the Company. The Company was formed by filing the
Certificate of Organization (the "CERTIFICATE") on the 25th day of January, 2005
with the Department of State.

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        2.2     Company Name and Office.

                (a)     The name of the Company shall be "BATTLE RAP, LLC."

                (b)     The Company shall maintain a registered office in the
State, and the name and address of the Company's registered agent in the State
shall be as specified in the Certificate. Such office and such agent may be
changed from time to time by the Managers.

                (c)     The principal office of the Company shall be located at
such address within or without the State as is selected by the Managers. The
Company may maintain such additional offices as may be designated from time to
time by the Managers for the purpose of carrying out the business of the
Company.

        2.3     Objective and Policy of the Company.

                (a)     The Company's primary business shall be to undertake one
or more development projects in the entertainment industry, including without
limitation development of the Battle Rap video brand for entertainment content,
including online interactive gaming, merchandise, film and music productions and
television programming and other business opportunities. The foregoing
enumerated objectives and purposes shall not be limited or restricted by
reference to, or inference from, the terms of any other portion of this
Agreement, and shall be regarded as independent. They are intended to be and
shall be construed as powers as well as purposes and objects of the Company and
shall be in addition to and not in limitation of the general powers of limited
liability companies under the laws of the State.

                (b)     The Company shall have all the powers permitted by law
that are necessary or desirable in carrying out the purposes and business of the
Company.

        2.4     Term of the Company. The term of the Company (the "TERM") shall
commence on the Effective Date and shall continue until the Termination Date or
any earlier dissolution as provided for in Article13 hereof. Upon any
dissolution of the Company, the winding up of its affairs shall be conducted in
accordance with the provisions of Article13 hereof.

        2.5     Foreign Qualification. Prior to the Company's conducting
business in any jurisdiction other than the State, the Managers shall cause the
Company to comply, to the extent procedures are available and those matters are
reasonably within the control of the Managers, with all requirements necessary
to qualify the Company as a foreign limited liability company in that
jurisdiction.

                                    ARTICLE 3
                            ADMISSION, WITHDRAWAL AND
                  REDEMPTION OF MEMBERS; CAPITAL CONTRIBUTIONS

        3.1     Admission of Members.

                (a)     As of the Effective Date, TRIMEDIA and IEG shall be
deemed admitted to the Company as Members. The Members' respective Capital
Contributions, the number of Units respectively issued to each Member with

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respect to his or its Capital Contributions, and his or its respective status as
a Member, shall be reflected on the books and records of the Company.

                (b)     Any Additional Member, or any Substituted Member
admitted pursuant to Article10 hereof, shall be admitted to the Company as of
the date on which such Member executes and delivers to the Company such
documentation as the Managers deem appropriate.

                (c)     The Company shall not issue any certificates in evidence
of its Units, but shall reflect each Member's Units on its books and records.
All Units so reflected shall be fully paid and non-assessable (except as
provided herein) upon their issuance by the Company as reflected on its books
and records. The Company may issue fractional Units.

        3.2     Capital Contributions.

                (a)     Each of the initial Members has contribute capital to
the Company as set forth opposite his or its name on Schedule A hereto, and
shall receive the number of Units set forth opposite his or its name on Schedule
A hereto.

                (b)     On or prior to the date of admission of any Additional
Member, and prior to the issuance of any additional Units to an existing Member,
each such Member shall agree to and shall make a Capital Contribution in the
amount, if any, and at the time or times determined by the Managers and set
forth opposite such Member's name on Schedule A.

                (c)     Except as otherwise provided in this Agreement, a Member
is not entitled to the return of any part of his or its Capital Contribution or
to be paid interest in respect of any Capital Account or Capital Contribution.
An unrepaid Capital Contribution is not a liability of the Company or of any
Member. A Member is not required to contribute or to lend any cash or property
to the Company to enable the Company to return any Member's Capital
Contribution.

        3.3     Loans. In the event that at any time the Managers determine that
additional funds are required by the Company, the Managers, acting for and on
behalf of, and in the name of, the Company, shall have the right, but not the
obligation, to cause the Company to borrow such additional funds from commercial
banks, savings and loan associations and/or other lending institutions or other
Persons (including Members).

        3.4     Additional Members. Additional Persons may be admitted to the
Company as Members and Units may be created and issued to those Persons on such
terms and conditions as the Managers may determine at the time of issuance
without regard to the rights and privileges of the existing Members. The
Managers from time to time may sell additional Units, accept additional Capital
Contributions or subscriptions therefor and admit Additional Members to the
Company without the consent of the existing Members upon a determination by the
Managers that such additional Capital Contributions are reasonably required for
the Company's operations. The new Membership Interests may have preferences as
to distributions and/or allocations which differ from, and may be senior to, the
existing Membership Interests, and may have a the Capital Contribution required
per Unit that is more or less than that of the initial Members, all as
reasonably determined by the Managers to be in the best interests of the
Company. Upon acceptance of any additional Capital Contributions or the
admission of any addition Members, Schedule A to this Agreement shall be amended
appropriately.

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        3.5     Liability of Members.

                (a)     The liability of each Member to the Company is limited
to such Member's Capital Contributions as specified in Schedule A hereof, as it
may be amended from time to time by agreement of the Managers and such Member.
Such Capital Contributions constitute the only funds that the Members are
required to furnish to the Company, whether by way of contribution of capital,
loan or otherwise. The Members shall have no personal liability for the
obligations of the Company.

                (b)     Except as may otherwise be required by the Act, no
Member shall be liable for a return of the assets of the Company delivered to
such Member.

                (c)     To the full extent allowed by applicable law, the
failure of the Company to observe any formalities or requirements relating to
the exercise of its powers or management of its business or affairs under this
Agreement or the Act shall not be grounds for imposing personal liability on the
Members for liabilities of the Company.

        3.6     Withdrawal. No Member may withdraw as a Member voluntarily, nor
shall any Member have the right to have its Units redeemed by the Company except
as otherwise provided in this Agreement, prior to the expiration of the Term.

                                    ARTICLE 4
                    MANAGEMENT AND OPERATIONS OF THE COMPANY

        4.1     Management Generally. The business and affairs of the Company
shall be managed under the direction of a board of managers having one member at
all times (the "BOARD OF MANAGERS"); provided that if TRIMEDIA has a Percentage
Interest of 33%, the Board of Managers thereafter shall have three members at
all times. No Manager in his or her individual capacity as such shall have the
authority or capacity to bind the Company or conduct its business unless
specifically authorized to do so by the Managers acting as a body. The Managers
shall act on behalf of the Company only as a body, either by an affirmative
Majority Vote cast at a meeting duly called and at which a quorum is present, or
alternately, by Majority written consent. Similarly, no Member in its capacity
as such shall have the authority or capacity to bind the Company or conduct its
business, but shall have only such voting and other management and participation
rights as are specifically set forth herein.

        4.2     Management Powers of the Managers.

                (a)     Without in any way limiting the generality of the
foregoing, but subject to the express provisions of this Agreement and the
provisions of the Act, the Managers shall have on behalf of the Company all
rights and powers that may be possessed by a manager under the Act, to manage
and administer the Company in accordance with the terms of this Agreement and to
perform all acts which they may, in their discretion, deem necessary or
desirable (which powers are hereby delegated to the extent provided herein to
the officers of the Company). The Managers' right and authority shall include,
but not be limited to, the right and authority to enter into and to execute,
acknowledge and deliver binding contracts and documents in the name of and on
behalf of the Company and to delegate power and authority to take designated
action(s) to any Member, group of Members, or employees.

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                (b)     Notwithstanding any provision hereof to the contrary,
the annual operating budget of the Company and any new Company projects shall
require unanimous approval of the Managers.

        4.3     Legal and Regulatory Compliance by the Company. The Managers
shall take all reasonable actions that may be necessary or appropriate for the
continuation of the Company's valid existence as a limited liability company
under the laws of the State and of each other jurisdiction in which such
existence is necessary to protect the limited liability of the Members or to
enable the Company to conduct the business in which it is engaged.

        4.4     Election, Tenure, and Removal of Managers.

                (a)     The Members hereby unanimously elect Joseph Safina as
the initial Manager of the Company, to exercise the powers of a Manager under
this Agreement until he resigns as a Manager, is removed pursuant to the terms
hereof or his successor is selected by the Members.

                (b)     Any Manager may resign at any time. Such resignation
shall be made in writing and shall take effect at the time specified therein.

                (c)     In any election of Managers, each Member shall be
entitled to cast that number of votes equal to the number of Managers on the
Board of Managers times the number of Units held by such Member, which votes may
be cast for a single candidate or divided among two or more candidates, at the
Member's discretion. The candidates with the greatest aggregate number of votes
shall be elected to the Board of Managers.

                (d)     Any Manager may be removed by the Members; provided that
no Manager may be removed if the number of votes cast against such removal would
have been sufficient to elect a Manager at a meeting of Members called for the
purpose of electing a new Board of Managers.

        4.5     Actions of the Managers; Meetings.

                (a)     Unless otherwise required by law or provided in the
Certificate or this Agreement, the act of a Majority of the Managers shall be
the act of the Managers.

                (b)     Meetings of the Managers may be held at such place or
places as shall be determined from time to time by resolution of the Managers.
At all meetings of the Managers, business shall be transacted in such order as
shall from time to time be determined by resolution of the Managers. A Majority
of the Managers shall constitute a quorum for any meeting.

                (c)     Special meetings of the Managers may be called by any
Manager on at least 24 hours notice to each other Manager. Such notice need not
state the purpose or purposes of, or the business to be transacted at, such
meeting, except as may otherwise be required by law or provided for by the
Certificate or this Agreement.

                (d)     The Managers may act by written consent of a Majority of
the Members in lieu of a meeting.

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        4.6     Delegation of Authority and Management Power to the Officers;
Retained Authority and Status Under the Act.

                (a)     The Managers shall be responsible for the general
policies of the Company and the management of its business and affairs, but they
shall not be required to conduct the day-to-day business of the Company
personally, nor will any individual Manager, acting alone in such capacity, have
agency authority to bind the Company unless specifically authorized by the
Managers acting as a body. Concurrently with the Effective Date, the initial
Members and Managers hereby exercise their power and authority to delegate their
rights and powers to manage the Company and control its day-to-day business and
affairs to the Officers named on Schedule B hereto and their duly elected
successors then serving from time to time, each of whom when properly authorized
pursuant to the terms hereof or the Act shall be an agent for the Company with
the powers typically possessed by an officer of a corporation having the same
title or as specified in any enabling resolution of the Managers. The Officers
shall have such powers and duties to conduct the day-to-day business and affairs
of the Company in furtherance of its purposes, policies and objectives, subject
only to the terms of this Agreement and to the rights of approval reserved
herein to the Managers or the Members, as the case may be.

                (b)     A person may hold more than one office in the Company.
Officers may but need not be Members or Managers. Each Officer shall hold office
at the pleasure of the Managers or until his or her failure to qualify for such
position pursuant to the terms hereof, death, resignation, or removal with or
without cause by a Majority Vote of the Managers.

                (c)     Pursuant to the Act, the delegation effected hereby
shall not cause the Members or Managers to cease to be "members" or "managers,"
as the case may be, within the meaning of the Act. All specific references to
the duties and powers of the Company or the Managers as stated herein shall,
unless the Act or the context of this Agreement expressly requires otherwise, be
deemed to refer to the duties and powers of the Officers exercising their
delegated powers, and the Officers shall fulfill and exercise such powers in
furtherance of the Company's purposes, policies and objectives, subject only to
the express approvals required hereby or by applicable law.

        4.7     Managers' and Officer's Standard of Care.

                (a)     The Managers and Officers shall carry out their duties
and exercise their powers hereunder in good faith and in a manner reasonably
believed by them to be in or not inconsistent with the best interests of the
Company. No Manager or Officer shall be liable to the Company or any Member for
honest mistakes of judgment or negligence in managing the affairs of the Company
or with respect to any other matter or for the negligence (whether of omission
or commission), dishonesty or bad faith of any employee or agent of the Company,
provided that such employee or agent was selected, engaged, retained and
supervised by the Managers or Officer in question with reasonable care. In
discharging its duties, each Manager and Officer shall be fully protected in
relying in good faith upon the records required to be maintained under this
Agreement and upon such information, opinions, reports or statements by any of
its other Managers, of Officers, or other agents, or by any other Person, as to
matters the Managers reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care

                                       10
<PAGE>

by or on behalf of the Company, including information, opinions, reports or
statements as to the value and amount of the Assets, liabilities, profits or
losses of the Company or any other facts pertinent to the existence and amount
of Assets from which Distributions to Members might properly be paid.

        4.8     Liability and Indemnification of the Managers, Officers and Tax
Matters Partner.

                (a)     No Person acting in his capacity as a Manager or an
Officer of the Company, or the Tax Matters Partner, shall be personally liable
to the Company or its Members for money damages unless the Manager or Officer
has breached or failed to perform his or her duties under this Agreement and
such breach or failure constitutes self-dealing, willful misconduct or
recklessness. No amendment of this Agreement or repeal of any of its provisions
shall limit or eliminate the benefits provided to the Managers, Officers and Tax
Matters Partner under this Section with respect to any act or omission which
occurred prior to such amendment or repeal.

                (b)     The Company shall, to the fullest extent permitted by
applicable law, indemnify and hold harmless the Officers of the Company, the
Managers, the Authorized Person, the Tax Matters Partner, and each director,
manager, officer and employee thereof or Person who is deemed to control either
the Company or a Manager (hereinafter collectively referred to as "INDEMNITEES")
from and against any losses, claims, damages, liabilities or actions, joint or
several, to which such Indemnitees may be subject by virtue of any act performed
by such Indemnitee, or omitted to be performed by any such Indemnitee, in
connection with the business of the Company or its formation, including amounts
paid in satisfaction of judgments, in compromise or as fines and penalties, and
shall reimburse each such Indemnitee for any legal or other expenses reasonably
incurred by such Person in connection with investigating, defending or preparing
to defend any such loss, claim, damage, liability or action, except with respect
to any matter as to which such Indemnitee shall not have acted in good faith in
the reasonable belief that his or her action was in the best interest of the
Company or, in the case of any criminal proceeding, as to which he or she shall
have had reasonable cause to believe that the conduct was unlawful; provided,
however, that the Company shall not be liable to any Indemnitee to the extent
that in the final judgment of a court of competent jurisdiction such loss,
claim, damage, liability or action is found to arise from such Indemnitee's
willful misconduct or recklessness. Notwithstanding the foregoing, with respect
to any action, suit or other Proceeding voluntarily prosecuted by any Indemnitee
as plaintiff, indemnification shall be mandatory only if the prosecution of such
action, suit or other proceeding by such Indemnitee was authorized by Majority
Vote of the Managers.

                (c)     Notwithstanding the foregoing, no indemnification shall
be made hereunder unless there has been a determination (1) by a final decision
on the merits by a court or other body of competent jurisdiction before whom the
issue of entitlement to indemnification hereunder was brought that such
Indemnitee is entitled to indemnification hereunder or, (2) in the absence of
such a decision, by (i) a Majority Vote of those Managers who are neither
Interested Persons of the Company nor parties to the Proceeding ("DISINTERESTED
NON-PARTY MANAGERS") that the Indemnitee is entitled to indemnification
hereunder, or (ii) if such vote is not obtainable because of the lack of
Disinterested Non-Party Managers, or even if obtainable, if such majority so
directs, independent legal counsel, in a written opinion, concludes that the

                                       11
<PAGE>

Indemnitee should be entitled to indemnification hereunder. All determinations
to make advance payments in connection with the expense of defending any
Proceeding shall be authorized and made in accordance with Subsection (d) of
this Section.

                (d)     Subject to any limitations provided by the Act and this
Agreement, the Company shall have the power and authority to advance expenses to
any Indemnitee, and shall advance such expenses to the fullest extent permitted
by law, and may indemnify other Persons providing services to the Company or any
of its Affiliates to the full extent provided by law as if the Company were a
corporation organized under the Pennsylvania Business Corporation Law, provided
in either event that such advance or indemnification has been approved by a
majority of the Managers.

                                    ARTICLE 5
                      RIGHTS AND OBLIGATIONS OF THE MEMBERS

        5.1     Management Rights of the Members. Except as expressly provided
in this Agreement or the Act, the Members shall take no part in the management
of the business of the Company or transact any business for the Company and
shall have no power to sign for or bind the Company.

        5.2     Meetings.

                (a)     Meetings of the Members for any proper purpose or
purposes may be called at any time by the Managers or the Members. If not
otherwise stated in or fixed in accordance with the remaining provisions hereof,
the record date for determining Members entitled to call a special meeting is
the date any Member first signs the notice of such meeting. Only business within
the purpose or purposes described in the notice (or waiver thereof) required by
this Agreement may be conducted at a special meeting of the Members.

                (b)     Unless otherwise specifically provided herein, a
Majority Vote by the Members at a meeting of the Members shall be the act of the
Members.

                (c)     All meetings of the Members shall be held at the
principal place of business of the Company or at such other place within or
without the State as shall be specified or fixed in the notices or waivers of
notice thereof; provided that any or all Members may participate in any such
meeting by any means permitted under Section 5.3.

                (d)     The chairman of the meeting or the Members shall have
the power to adjourn such meeting from time to time, without any notice other
than announcement at the meeting of the time and place of the holding of the
adjourned meeting. If such meeting is adjourned by the Members, such time and
place shall be determined by agreement of the Members. Upon the resumption of
such adjourned meeting, any business may be transacted that might have been
transacted at the meeting as originally called.

        5.3     Action by Written Consent or Telephone Conference.

                (a)     Any action required or permitted to be taken at any
meeting of Members may be taken without a meeting, without prior notice, and
without a vote, if a consent or consents in writing, setting forth the action so

                                       12
<PAGE>

taken, shall be signed by the holder or holders of not less than the minimum
Units that would be necessary to take such action at a meeting at which the
holders of all Units entitled to vote on the action were present and voted.

                (b)     Members may participate in and hold a meeting by means
of conference telephone, video conferencing or similar communications equipment
by means of which all Persons participating in the meeting can hear each other,
and participation in such meeting shall constitute attendance and presence in
Person at such meeting, except where a Person participates in the meeting for
the express purpose of objection to the transaction of any business on the
ground that the meeting is not lawfully called or convened.

        5.4     Corporate Conversion. In the event the Managers determine that
it is in the best interests of the Company's business for the Company to be
reorganized as a corporation (a "REORGANIZATION"), each of the Members agrees to
execute such documents, vote their respective Units or take such other actions
as are required or determined to be desirable by the Managers to accomplish such
Reorganization.

        5.5     Members' Representations and Warranties. Each Member hereby
represents and warrants to the Company and each other Member that:

                (a)     it is duly organized, validly existing, and in good
standing under the law of the state of its incorporation and is duly qualified
and in good standing as a foreign corporation in the jurisdiction of its
principal place of business (if not incorporated therein);

                (b)     it has full corporate power and authority to execute and
agree to this Agreement and to perform its obligations hereunder and all
necessary actions by the board of directors, shareholders or other Persons
necessary for the due authorization, execution, delivery, and performance of
this Agreement and its obligations hereunder by that Member have been duly
taken;

                (c)     it has duly executed and delivered this Agreement; and

                (d)     its authorization, execution, delivery, and performance
of its obligations hereunder does not and will not violate the terms of or
require the consent or approval of any other Person under the terms of any other
agreement or arrangement to which it is a party or by which it is bound.

                                    ARTICLE 6
                                CAPITAL ACCOUNTS

        6.1     Capital Accounts.

                (a)     General. There shall be established on the books of the
Company a capital account ("CAPITAL ACCOUNT") for each Member that shall consist
of such Member's initial Capital Contribution to the Company made pursuant to
this Agreement, (i) increased by (1) any additional Capital Contributions made
by such Member, and (2) any additions to the Capital Account of such Member
pursuant to allocations of Net Profits under Section 8.1 hereof; (ii) decreased
by (1) any distributions made to such Member, and (2) any subtractions from the

                                       13
<PAGE>

Capital Account of such Member pursuant to allocations of Net Losses under
Section 8.2 hereof; and (iii) otherwise adjusted in accordance with the tax
accounting principles set forth in Treasury Regulations Section
1.704-1(b)(2)(iv) (including, but not limited to, those principles
concerning revaluations of Company property and book-ups pursuant to Section 6.2
hereof).

                (b)     Accounting for Distributions in Kind. For purposes of
maintaining Capital Accounts, when Company property is distributed in kind, (i)
the Company shall treat such property as if it had been sold for its Fair Market
Value on the date of distribution, (ii) any difference between the Fair Market
Value of such property and the cost of such property shall constitute Net Profit
or Net Loss attributable to such distribution and shall be allocated to the
Capital Accounts of the Members pursuant to Article8 and (iii) all property
distributed in kind by the Company to a Member shall reduce that Member's
Capital Account by the Fair Market Value of such property on the date of
distribution (net of any liabilities secured by such distributed property that
such Member is considered to assume or take subject to pursuant to Section 752
of the Code).

                (c)     Compliance with Treasury Regulations. The foregoing
provisions and the other provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Section 704(b) of
the Code and Treasury Regulations Section 1.704-1(b), and shall be interpreted
and applied in a manner consistent with such regulations. In the event that the
Managers shall determine that it is prudent to modify the manner in which the
Capital Accounts, or any debits or credits thereto, are computed in order to
comply with such regulations, the Managers may make such modification.

        6.2     Book-Ups. The Managers may adjust the Gross Asset Values of all
the Company's assets to equal their respective gross fair market value as
determined by the Managers as of the following times:

                (a)     (i) the acquisition of an additional interest by any new
or existing Member in exchange for more than a de minimis Capital Contribution;
(ii) the distribution by the Company to a Member of property as consideration
for all or any part of an interest owned by the Member; (iii) at such times as
the Managers shall determine in order to carry out the purposes for which the
Company is established, and (iv) the liquidation of the Company within the
meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g); provided, however,
that adjustments pursuant to clauses (i), (ii) and (iii) above shall be made
only if the Managers determine that such adjustments are necessary or
appropriate to reflect the relative economic interests of the Members in the
Company;

                (b)     the distribution of any Company asset to any Member,
which distribution shall be treated as made for an amount equal to the gross
fair market value of such asset on the date of distribution; and

                (c)     the Gross Asset Values of Company assets shall be
increased (or decreased) to reflect any adjustments to the adjusted bases of
such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to
the extent that such adjustments are taken into account in determining Capital
Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m) and
Section 754 of the Code; provided, however, that Gross Asset Values shall

                                       14
<PAGE>

not be adjusted pursuant to this Subsection (c) to the extent the Managers
determine that an adjustment pursuant to Subsection (a) above is necessary or
appropriate in connection with a transaction that would otherwise result in an
adjustment pursuant to this Subsection (c).

                                    ARTICLE 7
                                  DISTRIBUTIONS

        7.1     Tax Distributions. Subject to this Section 7.1, the Managers may
in their sole discretion cause the Company to distribute to each Member in cash,
with respect to any fiscal year, either during such year or prior to the
deadline to filing the Company's tax returns for such year, as such deadline may
be extended, an amount equal to the aggregate state and federal income tax
liability such Member would have incurred as a result of such Member's ownership
of an interest in the Company, calculated (i) as if such Member were taxable at
the maximum marginal income tax rates provided for with respect to natural
persons under applicable federal and state income tax laws as determined from
time to time by the Managers after consulting with accountants to the Company
and (ii) as if allocations from the Company were, for such year, the sole source
of income and loss for such Member (such distributions being referred to herein
as "TAX DISTRIBUTIONS"). Tax Distributions made to any Member with respect to
any fiscal year shall be reduced by the amount of any other cash distributions
made by the Company to such Member during such fiscal year or within 90 days
thereafter, provided, however, that for purposes of this clause, any Tax
Distribution made within 90 days after the beginning of any fiscal year with
respect to a prior year shall not be accounted for as a Tax Distribution for the
fiscal year in which it was made. Any Tax Distribution shall be applied against
and reduce the amount a Member otherwise would be entitled to receive pursuant
to Section 7.3 hereof.

        7.2     Timing of Distributions. The Managers may cause the Company to
make other distributions, in cash or in kind, in their sole discretion, subject
to the other provisions of this Article 7. Except as otherwise provided in
Section 7.1 of this Agreement with respect to Tax Distributions, all
Distributions shall be made to the Members in proportion to their respective
Percentage Interests.

        7.3     Distributions on Dissolution. In the event of the dissolution
and liquidation of the Company pursuant to Article13, the net cash proceeds
and/or other assets of the Company available for distribution after the payment
of all expenses and previously outstanding indebtedness (or set aside for the
establishment by the Managers of reserves) shall be distributed among the
Members in the amounts and with the priorities set forth in Section 8.3 of this
Agreement. If any of the assets are to be distributed in kind, the Fair Market
Value of such assets shall be determined as of the time of such distribution (or
at such other day reasonably close to the day of such distribution as the
Managers shall determine). There shall be allocated among the Members, in
accordance with Article 8 of this Agreement, the amount of Net Profits or Net
Losses, if any, that would have been realized by the Company if such assets had
been sold by the Company for prices equal to their respective Fair Market
Values.

        7.4     Taxes Withheld. Unless treated as a Tax Payment Loan (as
hereinafter defined), any amount paid by the Company for or with respect to any
Member on account of any withholding tax or other tax payable with respect to
the income, profits or distributions of the Company pursuant to the Code, the
Treasury Regulations, or any state or local statute, regulation or ordinance

                                       15
<PAGE>

requiring such payment (a "WITHHOLDING TAX ACT") shall be treated as a
distribution to such Member for all purposes of this Agreement, consistent with
the character or source of the income, profits or cash which gave rise to the
payment or withholding obligation. To the extent that the amount required to be
remitted by the Company under the Withholding Tax Act exceeds the amount then
otherwise distributable to such Member, the excess shall constitute a loan from
the Company to such Member (a "TAX PAYMENT LOAN") which shall be payable upon
demand and shall bear interest, from the date that the Company makes the payment
to the relevant taxing authority, at the Prime Rate, plus two percentage points,
compounded monthly. So long as any Tax Payment Loan or the interest thereon
remains unpaid, the Company shall make future distributions due to such Member
under this Agreement by applying the amount of any such distribution first to
the payment of any unpaid interest on all Tax Payment Loans of such Members and
then to the repayment of the principal of all Tax Payment Loans of such Member.

        The Managers shall have the authority to take all actions necessary to
enable the Company to comply with the provisions of any Withholding Tax Act
applicable to the Company and to carry out the provisions of this Section.
Nothing in this Section shall create any obligation on the Managers to advance
funds to the Company or to borrow funds from third parties in order to make any
payments on account of any liability of the Company under the Withholding Tax
Act.

                                    ARTICLE 8
                     ALLOCATION OF NET PROFITS OR NET LOSSES

        8.1     Allocation of Net Profits. After giving effect to the Regulatory
Allocations set forth in Section 9.3 of this Agreement, Net Profits for any
fiscal year or other period of the Company will be credited to the Capital
Accounts of the Members in the following order of priority:

                (a)     First, to the Members, in accordance with their
respective Percentage Interests, in an amount sufficient to reverse the
cumulative amount of any Net Losses allocated to the Members in the current and
all prior fiscal years, first pursuant to the proviso after Section 8.2(b) of
this Agreement, and second pursuant to Section 9.2(b) of this Agreement,
allocated to each Member in the order and in proportion to the allocation of
such Net Losses to such Member; and

                (b)     Thereafter, one hundred percent (100%) to the Members in
accordance with their Percentages Interests.

        8.2     Allocation of Net Losses. After giving effect to the Regulatory
Allocations set forth in Section 9.3 of this Agreement, Net Losses for any
fiscal year or other period will be charged to the Capital Accounts of the
Members in the following order of priority:

                (a)     First, to the Members in accordance with their
respective Percentage Interests to reverse the cumulative amount of Net Profits
allocated under Section 9.1(b) of this Agreement in the current and all prior
fiscal years; and

                                       16
<PAGE>

                (b)     Second, one hundred percent (100%) to the Members in
accordance with their respective Percentage Interests;

provided, however, that Net Losses that otherwise would be allocated to the
Members in accordance with their respective Percentage Interests will not be
allocated to any Member if such Net Losses would result in or increase an
Adjusted Capital Account Deficit with respect to such Member and any Net Losses
that cannot be allocated to any Member as a result of this proviso shall be
allocated first to the Capital Accounts of the other Members in proportion to
the positive balances in their respective Capital Accounts until all such
Capital Accounts are reduced to zero, and then to the Members in accordance with
their respective Percentage Interests.

        8.3     Regulatory Allocations. The following special allocations shall
be made in the following order:

                (a)     Company Minimum Gain Chargeback. Except as otherwise
provided in Section 1.704-2(f) of the Regulations, in the event there is a net
decrease in Company Minimum Gain during a Company taxable year, each Member
shall be allocated items of income and gain for such year (and, if necessary,
for subsequent years) equal to that Member's share of the net decrease in
Company Minimum Gain.

                        (i)     The determination of a Member's share of the net
decrease in Company Minimum Gain shall be determined in accordance with
Regulations Section 1.704-2(g).

                        (ii)    The items to be specially allocated to the
Members in accordance with this Section 8.3(a) shall be determined in accordance
with Regulations Section 1.704-2(f)(6).

                        (iii)   This Section 8.3(a) is intended to comply with
the Minimum Gain chargeback requirement set forth in Regulations Section
1.704-2(f) and shall be interpreted consistently therewith.

                (b)     Member Minimum Gain Chargeback. Except as otherwise
provided in Section 1.704-2(i)(4) of the Regulations, in the event there is a
net decrease in Member Minimum Gain during a Company taxable year, each Member
who has a share of that Member Minimum Gain as of the beginning of the year, to
the extent required by Regulations Section 1.704-2(i)(4) shall be specially
allocated items of Company income and gain for such year (and, if necessary,
subsequent years) equal to that Member's share of the net decrease in Member
Minimum Gain.

                        (i)     Allocations pursuant to this Subsection 8.3(b)
shall be made in accordance with Regulations Section 1.704-2(i)(4). This
Subsection 8.3(b) is intended to comply with the requirement set forth in
Regulations Section 1.704-2(i)(4) and shall be interpreted consistently
therewith.

                (c)     Qualified Income Offset Allocation. In the event any
Member unexpectedly receives any adjustments, allocations or distributions
described in Treasury Regulation Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6),
which would cause such Member to have an Adjusted Capital Account Deficit, items

                                       17
<PAGE>

of Company income and gain shall be specially allocated to such Member in an
amount and manner sufficient to eliminate such Adjusted Capital Account Deficit
as quickly as possible. This Section 8.3(c) is intended to constitute a
"qualified income offset" in satisfaction of the alternate test for economic
effect set forth in Regulation Section 1.704-1(b)(2)(ii)(d) and shall be
interpreted consistently therewith.

                (d)     Allocation of Nonrecourse Deductions. Nonrecourse
Deductions (within the meaning of Section 1.704-2(b)(1) of the Regulations)
shall be allocated to the Members in accordance and on the same basis as the
allocations of Net Profits and Net Losses, as the case may be.

                (e)     Allocation of Member Nonrecourse Deductions. Member
Nonrecourse Deductions (within the meaning of Section 1.704-2(i) of the
Regulations) shall be specially allocated to the Member who bears the economic
risk of loss with respect to the Member Nonrecourse Debt (within the meaning of
Section 1.704-2(b)(4) of the Regulations) to which such Member Nonrecourse
Deductions are attributable in accordance with Section 1.704-2(i)(1) of the
Regulations.

                (f)     Regulatory Allocations. The allocations set forth in
Section 8.3 of this Agreement (the "REGULATORY ALLOCATIONS") are intended to
comply with certain requirements of Treasury Regulations Section 1.704.
Notwithstanding any other provisions of this Article 8 (other than the
Regulatory Allocations), the Regulatory Allocations shall be taken into account
in allocating subsequent Net Profits, Net Losses and items of income, gain, loss
and deduction among the Members so that, to the extent possible, the net amount
of such allocations of subsequent Net Profits, Net Losses and other items and
the Regulatory Allocations to each Member shall be equal to the net amount that
would have been allocated to each such Member pursuant to the provisions of this
Article 8 if the Regulatory Allocations had not occurred. For purposes of
applying the foregoing sentence, allocations pursuant to this Section 8.3(f)
shall be made only to the extent the Managers reasonably determine that such
allocations will otherwise be inconsistent with the economic agreement among the
Members.

        8.4     Section 704(c) Tax Allocations. In the event that the Capital
Account of any Member is credited with or adjusted to reflect the Fair Market
Value of a Company property or properties, the Members' distributive shares of
depreciation, depletion, amortization, and gain or loss, as computed for tax
purposes, with respect to such property, shall be determined pursuant to Section
704(c) of the Code and the Regulations thereunder, so as to take account of the
variation between the adjusted tax basis and book value of such property. Any
deductions, income, gain or loss specially allocated pursuant to this Section
8.4 shall not be taken into account for purposes of determining Net Profits or
Net Losses or for purposes of adjusting a Member's Capital Account.

        8.5     Assignment During Fiscal Year. If a Member's interest in the
Company is transferred at any time other than at the end of a fiscal year of the
Company, each item of income, gain, loss, deduction and credit attributable to
such interest for the fiscal year in which the transfer occurs shall be divided
and allocated between the transferor and the transferee based on a closing of
the books by the Company which shall occur on the closing date of the transfer.

                                       18
<PAGE>

                                    ARTICLE 9
                             ACCOUNTING; TAX MATTERS

        9.1     Fiscal Year. The fiscal year of the Company ("FISCAL YEAR")
shall begin on January 1 and shall end on December 31 of each year.

        9.2     Books of Account. At all times during the existence and
continuance of the Company, the Managers shall cause to be kept accurate,
complete, and proper books, records, and accounts pertaining to the Company's
affairs, including: (a) a list of all Members, Capital Contributions, Units
outstanding, Percentage Interests, and Capital Accounts; (b) copies of the
Company's Federal and state tax returns and financial statements; (c) the
Company's books and records; and (d) such other records as are required by law
to be kept. Such books and records shall be kept on the accrual basis of
accounting.

        9.3     Financial Reports. Within ninety (90) days after the end of each
fiscal year of the Company, the Managers shall cause to be prepared and
furnished to each Member (i) the balance sheet of the Company dated as of the
end of the fiscal year then ended; (ii) a related statement of cash flow and
income or loss for the Company for the same year; and (iii) such other
information as is required by the Act. These financial statements must be
prepared in accordance with generally accepted accounting principles (except as
therein noted). The Managers may from time to time in his or her discretion
provide to Members interim balance sheets, income statements and other reports
and information concerning the Company's operations.

        9.4     Preparation and Filing of Income Tax Returns and Other Writings.
The Managers shall cause the preparation and timely filing of all Company tax
returns, shall on behalf of the Company make such tax elections, determinations,
and allocations as appear to be appropriate, and shall timely make all other
filings required by any governmental authority having jurisdiction to require
such filing, the cost of which shall be borne by the Company. The Managers shall
also cause to be delivered to the Members, prior to the deadline for filing the
Company's federal income tax return for each tax year of the Company (including
extensions), a Form K-1 prepared by the Company's accountants. This form shall
show the allocation of Taxable Income or Tax Loss of the Company including all
separately stated items, to each Member.

        9.5     "Tax Matters Partner." A Manager appointed by the Managers shall
be the Tax Matters Partner of the Company pursuant to Section 6231(a)(7) of the
Code.

                                   ARTICLE 10
              TRANSFER OF MEMBERSHIP INTERESTS; SUBSTITUTED MEMBERS

        10.1    Non-Complying Transfers Prohibited. No Member may Transfer,
exchange, gift, devise, pledge, hypothecate, encumber or otherwise alienate or
dispose of any Units now owned by such Member or owned by such Member during the
term of this Agreement, or any right or interest therein, whether voluntarily or
involuntarily, by operation of law or otherwise, except in accordance with this
Agreement. Any such purported Transfer in violation of any provision of this
Agreement and all actions by the purported transferor and transferee in
connection therewith shall be of no force or effect and the Company shall not be
required to recognize such purported Transfer for any purpose, including without

                                       19
<PAGE>

limitation for purposes of distribution and voting rights. If any Transfer of
Units is made or attempted contrary to the provisions of this Agreement or if
any Units are not offered as required by this Agreement, the Company shall have
the right to purchase such Units from the owner thereof or such owner's
transferee at any time before or after the purported Transfer, as hereinafter
provided. In addition to any other legal or equitable remedies the Company may
have, the Company may enforce this right by actions for specific performance, to
the extent permitted by law.

        10.2    Permitted Transfers.

                (a)     Transfers to Permitted Transferees. The restrictions on
Transfer contained in this Article 10 shall not apply to transfers to an entity
that is 100% owned and controlled by the transferee (collectively, "PERMITTED
TRANSFEREES"); provided, however, that in any such event the Units so
Transferred in the hands of each such Permitted Transferee shall remain subject
to this Agreement, and each such Permitted Transferee shall so acknowledge in
writing as a condition precedent to the effectiveness of such Transfer; and
provided further, that if any Permitted Transferee does not have material assets
other than the transferred Units, the Transferring Partner must agree to
restrictions on the Transfer of equity interests in the Permitted Transferee
equivalent to the provisions of this Article 10.

                (b)     Reasonable Assurances. The Company must receive
assurances reasonably satisfactory to it from the transferring Member and that
any permitted Transfer (i) may be effected without registration of the Interest
under the Securities Act of 1933, as amended, (ii) does not violate any state
securities laws; (iii) does not result in an acceleration or default under any
loan to the Company or other contractual obligation; (iv) will not have any
adverse tax result for the Company; and (v) will not cause the Company to be
subject to any additional regulatory requirements (including, without
limitation, registration requirements under the Investment Company Act of 1940,
as amended). If reasonably requested by the Managers, items (i) - (v) shall be
supported by an opinion of legal counsel reasonably acceptable to the Managers.
The cost of such opinion and any other such assurances shall be borne by the
transferring Member.

        10.3    Right of First Refusal. In the event that a Member (an "OFFERING
MEMBER") shall desire to make any Transfer of all or any portion of its Units to
another Person, pursuant to the terms of a bona fide offer to purchase such
Units, the Offering Member must first notify the Company and each other Member
(the "REMAINING MEMBERS") of such intent and offer such Units (the "OFFERED
UNITS") for sale to the Company and to the Remaining Members for a period of 30
days on the same terms and conditions as the proposed sale. If the Managers have
approved the transfer and if the Offered Units are not purchased by the Company
or the Remaining Members, the Offering Member shall be entitled for a 60-day
period to transfer his Units to the proposed transferee on the terms and
conditions contained in the offer.

        10.4    Mandatory Redemption.

                (a)     Upon the occurrence of any of the following (a
"TRIGGERING EVENT"):

                        (i)     the dissolution of a non-individual Member;

                                       20
<PAGE>

                        (ii)    a Member becoming Bankrupt;

                        (iii)   entry of an order of a court of competent
jurisdiction ordering the Transfer of any of the Units of any Member to any
third party; or

                        (iv)    any attempt by a Member to effect a Transfer
other than in accordance with the terms hereof;

then all of the Units owned by such Member (the "FORMER MEMBER") shall be
subject to redemption by the Company, at its option by written notice to the
Former Member within thirty (30 days following receipt by the Company of notice
of the Triggering Event, for their Fair Market Value as of the date of the
Triggering Event.

                (b)     The Fair Market Value shall be determined on the date of
the Triggering Event.

                (c)     Closing shall occur within ninety (90) days after
delivery of written notice from the Company to the Former Member (or its
representative) that the Company is exercising its redemption right, at which
time the Company shall pay in immediately collectible funds an "initial payment"
equal to ten percent (10%) of the redemption price with the balance to be
evidenced by delivery of its promissory note providing for payments in sixty
(60) equal monthly installments of principal, each together with floating
interest at the applicable federal rate as required under the Code to avoid the
imputation of interest, such rate as in effect during the month and year of the
date of the Triggering Event; provided, however, that each monthly payment shall
not exceed ten percent (10%) of its Available Cash Flow for the most recent
month for which information is available. To the extent the Note is not paid in
such period, the Note shall automatically extend for such further term as shall
be necessary to pay the principal balance of and all accrued interest on the
Note. The redemption purchase price, together with interest thereon, shall be
paid in equal monthly installments over a period of five years.

        10.5    Transfers Not in Compliance with this Article Void. Any
attempted Transfer of Units, or any part thereof, or any document purporting to
admit a transferee as a Member that is not in compliance with Article 3 and this
Article 10, shall be, and is declared to be, null and void ab initio.

        10.6    Admission of Substituted Members. If a transferee of Units (a
"SUBSTITUTED MEMBER") is admitted pursuant to the terms of Articles 3 and 10
hereof, the Substituted Member shall have all the rights and powers and is
subject to all the restrictions and liabilities of the Member originally having
the Units.

                                   ARTICLE 11
                      EXCLUSIVE EFFORTS AND NONCOMPETITION

        11.1    Best Efforts and Non-Competition.

                (a)     The parties agree to devote their best efforts to
further the purpose and affairs of the Company. Each Member hereby covenants
that it will devote such of its time and resources, including without limitation
the business skill, time and efforts of its personnel, to the business of the

                                       21
<PAGE>

Company as may be reasonably required, and that it shall not enter into any
agreement, arrangement, understanding or obligation that would materially
interfere with its ability to do so.

                (b)     No Member shall directly or indirectly (i) induce or
attempt to influence any employee or consultant of the Company or its Affiliates
to terminate such employee's or consultant's employment with or engagement by
the Company or its Affiliates or (ii) directly or indirectly, engage in any
business activity, on its own behalf or as a member, partner, shareholder,
director, principal, agent, officer, employee, consultant, or otherwise of any
Person, which directly or indirectly competes with any business that the Company
is then conducting (or which the Company has definite plans to conduct).
However, nothing contained in this Subsection shall prevent a Member from
holding for investment not more than two percent (2%) of any class of equity
securities of a company whose securities are traded on a national securities
exchange or quoted on a national interdealer quotation system.

                (c)     Each Member acknowledges that the restrictions contained
in the foregoing Subsections (a) and (b) do not impose an undue hardship and, in
view of the nature of the business in which the Company is engaged, are
reasonable and necessary in order to protect the legitimate interests of the
Company, and that any violation thereof would result in irreparable injuries to
the Company, and each Member therefore acknowledges that, in the event of his or
its violation of any of these restrictions, the Company shall be entitled to
obtain from any court of competent jurisdiction preliminary and permanent
injunctive relief as well as damages and an equitable accounting of all
earnings, profits and other benefits arising from such violation, which rights
shall be cumulative and in addition to any other rights or remedies to which the
Company may be entitled.

                                   ARTICLE 12
                          NONDISCLOSURE OF INFORMATION

        12.1    Confidentiality. All disclosures of trade secrets, know-how,
financial information, or other confidential information made by the Company to
any Member or made by any Member under or in connection with this Agreement, as
well as the terms of this Agreement, shall be received and maintained in
confidence by the recipient and each Member shall treat all such trade secrets,
know-how, financial information or other confidential information as
confidential except:

                (a)     as to the persons directly responsible for the
performance of the obligations of the parties under this Agreement and for the
effective operation of the Company;

                (b)     as to the professional advisers of the Members and the
Company;

                (c)     as to such disclosures to customers of the Company as
are necessary for the effective carrying on of business by the Company;

                (d)     as to such information as is required by law to be
disclosed by the Members or the Company; and

                                       22
<PAGE>

                (e)     as to such information as is or may fall within the
public domain otherwise than in violation of the provisions of this Section
12.1.

        12.2    Duty of Care. Each Member will take such steps as lie within its
power to assure that all officers and employees of the Company, or of any
Affiliates of the Company or such Member, to whom confidential information is
disclosed, take all proper precautions to prevent the unauthorized disclosure
and use of the confidential information referenced in Section 12.1.

                                   ARTICLE 13
                                POWER OF ATTORNEY

        13.1    Authority to Execute Documents. During the Term of the Company
and (to the extent any Manager remains) during any additional period authorized
in accordance with this Agreement to dissolve, liquidate and wind up the affairs
of the Company, each of the Members irrevocably designates and appoints the
Managers, and any successor of the Managers, and any duly appointed agent of the
Managers, with full power of substitution, to be the Member's true and lawful
attorney-in-fact with the power from time to time in the name, place, and stead
of the Member to do any act necessary to qualify the Company to do business
under the laws of any jurisdiction in which it is necessary to file any
instrument in writing in connection with such qualification, and to make,
execute, swear to and acknowledge, amend, file, record, deliver, and publish in
conformance with the provisions of this Agreement (i) the Certificate; (ii) a
counterpart of this Agreement or of any amendment hereto for the purpose of
filing or recording such counterpart in any jurisdiction in which the Company
may own property or transact business; (iii) all certificates and other
instruments necessary to qualify or continue the Company as a limited liability
company in the State or in any jurisdiction where the Company may own property
or be doing business; (iv) any fictitious or assumed name certificate required
or permitted to be filed by or on behalf of the Company; (v) any other
instrument that is now or may hereafter be required by law to be filed for or on
behalf of the Company; (vi) any other instruments or documents that the Managers
deem necessary to conduct the operations of the Company; provided that such
instrument or document is not inconsistent with the terms of this Agreement in
effect at that time; (vii) any document or instrument required to approve or
effect a Reorganization described in Section 5.4; (viii) any amendment to this
Agreement pursuant to Section 14.1 hereof; and (ix) a certificate or other
instrument evidencing the dissolution or termination of the Company when such
shall be appropriate in each jurisdiction in which the Company shall own
property or do business.

        13.2    Survival of Power. The existence of this Power of Attorney shall
not preclude execution of any such instrument by a Member individually on any
such matter. This limited Power of Attorney shall not be revoked and shall
survive the Transfer by a Member of all or part of its Units in the Company and,
being coupled with an interest, shall survive the death, incapacity, or
dissolution of the Member to the extent that it may legally contract for such
survival. Any person dealing with the Company may conclusively presume and rely
upon the fact that any such instrument executed by such agent and
attorney-in-fact is authorized, regular, and binding without further inquiry.
This Power of Attorney may be exercised for each Member by a signature of the
Managers or their designee(s) or by listing the names of all the Members and
executing any instrument with the signatures of the Managers or their
designee(s) acting as attorney-in-fact for all of them.

                                       23
<PAGE>

                                   ARTICLE 14
                                    AMENDMENT

        14.1    Amendment. Any provision of this Agreement may be amended by
written agreement of the Members, provided that no amendment of this Agreement
shall, without the consent of the affected Member (i) increase the liability of
such Member beyond the liability of such Member expressly set forth in this
Agreement or as applicable, its Subscription Agreement, or otherwise modify or
affect the limited liability of such Member; (ii) change the maximum Capital
Contribution required of such Member (other than as provided in this Agreement
or its Subscription Agreement); or (iii) change the method of allocations or
Distributions made under the provisions of Articles 7, 8 and 15 hereto to any
Member (except as allowed by this Agreement).

                                   ARTICLE 15
                           DISSOLUTION AND WINDING UP

        15.1    Dissolution. The Company shall be dissolved and its affairs
wound up, upon the first to occur of the following events:

                (a)     the sale of all or substantially all of the Company's
assets;

                (b)     the Majority Vote of the Members;

                (c)     the removal or resignation of a sole Manager, unless a
new Manager is elected by the Members within ninety (90) days thereafter; or

                (d)     judicial dissolution of the Company as provided for in
the Act.

        15.2    Effect of Dissolution. Upon dissolution, the Company shall cease
carrying on (as distinguished from the winding up of) the Company business, but
the Company is not terminated and will continue until the winding up of the
affairs of the Company is completed and the certificate of dissolution has been
issued by the Secretary of State.

        15.3    Distributions Upon Dissolution. Upon dissolution of the Company,
the Managers or their designee shall act as liquidating trustee(s) regarding the
disposition of the assets for cash and the winding up of its affairs, to pay and
discharge all liabilities and obligations of the Company, and to distribute all
cash remaining and any assets which cannot be disposed of to the Members in
accordance with the priorities set forth in Section 7.3 hereof.

        15.4    Certificate of Dissolution. The winding up of the Company shall
be completed when all debts, liabilities, and obligations of the Company have
been paid and discharged or reasonably adequate provision therefor has been
made, and all of the remaining assets of the Company have been distributed to
the Members in accordance with the terms hereof. Upon the completion of winding
up of the Company, a certificate of dissolution shall be delivered by the
President or, in his absence, any Manager, or, in their absence, any Member, to
the Secretary of State for filing. The certificate of dissolution shall set
forth the information required by the Act.

                                       24
<PAGE>

                                   ARTICLE 16
                 ADDITIONAL COVENANTS; MISCELLANEOUS PROVISIONS

        16.1    Notices. All notices, reports and other communications given
pursuant to this Agreement shall be in writing and shall either be mailed by
first class mail, postage prepaid, certified or registered with return receipt
requested, delivered in person or by nationally recognized overnight courier, or
sent by telecopier or prepaid telegram followed by confirmatory letter, to
address of the recipient on the records of the Company.

        16.2    Governing Law. THIS AGREEMENT IS MADE PURSUANT TO AND SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE EXCLUSIVE OF ITS
LAWS REGARDING THE CONFLICT OF LAWS, EXCEPT TO THE EXTENT SUCH STATE'S LAW MAY
BE PREEMPTED BY APPLICABLE FEDERAL LAWS.

        16.3    Entire Agreement; Rules of Construction. This Agreement contains
the entire agreement among the Members relating to the subject matter hereof and
there are no other or further agreements outstanding not specifically mentioned
herein; provided, however, that this Agreement may be amended and supplemented
in writing from time to time as provided in Section 14.1 hereof.

        16.4    Severability. The provisions of this Agreement are severable.

        16.5    Gender and Number. Whenever required by the context, as used in
this Agreement, the singular number shall include the plural, the neuter shall
include the masculine or the feminine gender, and the masculine gender shall
include the neuter or the feminine gender.

        16.6    Captions. The Article and Section headings appearing in this
Agreement are for convenience of reference only and are not intended, to any
extent and for any purpose, to limit or define the text of any Article or
Section hereof.

        16.7    Counterparts and Execution. This Agreement may be executed in
multiple counterparts, each of which shall be deemed an original Agreement for
all purposes, and all of which when taken together shall constitute one
Agreement among each of the parties hereto on the dates respectively indicated
in the signatures of the parties.

        16.8    Waiver of Right to Partition. Each of the parties hereto
irrevocably waives during the term of the Company any right that he may have to
maintain any action for partition with respect to a Company asset.

        16.9    Assigns. Each and all of the covenants, terms, provisions, and
agreements herein contained shall be binding upon and inure to the benefit of
the parties hereto and, to the extent permitted by this Agreement, their
respective heirs, executors, administrators and assigns.

        16.10   Rights of Creditors and Third Parties under this Agreement. This
Agreement is entered into among the Company and the Members for the exclusive
benefit of the Company, its Members, and their successors and assignees. The
Agreement is expressly not intended for the benefit of any creditor of the
Company or any other Person. Except and only to the extent provided by

                                       25
<PAGE>

applicable statute, no such creditor or third party shall have any rights under
the Agreement, any Subscription Agreement or any agreement between the Company
and any Member with respect to any Capital Contribution or otherwise.

                  [Remainder of page intentionally left blank.]

                                       26
<PAGE>

        IN WITNESS WHEREOF, the undersigned have executed this Agreement as the
Members as of the day and year first written above.

                                             TRIMEDIA ENTERTAINMENT GROUP, INC.

                                             By:
                                                 -------------------------------
                                                 Christopher Schwartz, CEO

                                             INTERNATIONAL EQUITIES GROUP, INC.

                                             By:
                                                 -------------------------------
                                                 Joseph Safina, CEO

                                       27
<PAGE>

                                   SCHEDULE A
                        MEMBERS AND CAPITAL CONTRIBUTIONS

                                               CAPITAL
                     MEMBERS                 CONTRIBUTION    UNITS
        ----------------------------------   ------------    -----

        TRIMEDIA ENTERTAINMENT GROUP, INC.                      --

        ITNERNATIONAL EQUITIES GROUP, INC.                      --

<PAGE>

                                   SCHEDULE B
                                INITIAL OFFICERS

Joseph Safina - Chairman and Chief Executive Officer<PAGE>

                        (FACE OF REGISTERED GLOBAL NOTE)

                           REGISTERED GLOBAL SECURITY

      THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A
NOMINEE THEREOF. TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE DEPOSITARY OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE OR TO THE DEPOSITARY BY A NOMINEE OF THE
DEPOSITARY AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF.

      UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER ENTITY
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, 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.

      [If this Security is an Original Issue Discount Note the following is
deemed inserted: THE "TOTAL AMOUNT OF OID", "ORIGINAL YIELD TO MATURITY" AND
"INITIAL ACCRUAL PERIOD OID" [The following applicable method is deemed
inserted: (COMPUTED UNDER THE APPROPRIATE METHOD) or (COMPUTED UNDER THE EXACT
METHOD)] SET FORTH IN THE PRICING SUPPLEMENT (AS DEFINED BELOW) HAVE BEEN
COMPLETED SOLELY FOR THE PURPOSE OF APPLYING THE UNITED STATES FEDERAL INCOME
TAX ORIGINAL ISSUE DISCOUNT RULES.]

<PAGE>

                DAIMLERCHRYSLER NORTH AMERICA HOLDING CORPORATION

                                MEDIUM-TERM NOTE

                                    SERIES E

                  IRREVOCABLY AND UNCONDITIONALLY GUARANTEED BY

                               DAIMLERCHRYSLER AG

REGISTERED NO.                              CUSIP NO.

PRINCIPAL AMOUNT:

ORIGINAL ISSUE DATE:

MATURITY DATE:

ORIGINAL ISSUE DISCOUNT NOTE:               YES [ ]   NO [ ]

                                        2
<PAGE>

<TABLE>
<S>                               <C>                                      <C>
Original Issue Date:              Interest Rate Basis or Bases:            Interest Payment Period:

Issue Price:                      If LIBOR:                                Interest Payment Dates:
                                    [ ] LIBOR Reuters Page: ___
Maturity Date:                      [ ] LIBOR Moneyline Telerate           Regular Record Dates:
                                        Page: ___
Initial Interest Rate:              [ ] LIBOR Currency (if other than      Interest Determination Dates:
                                        U.S. dollars): ___
Interest Reset Period:            IF CMT Rate:                             Initial Redemption Date:
                                    [ ] CMT Moneyline Telerate
                                        Page 7051
Interest Reset Dates:               [ ] CMT Moneyline Telerate             Initial Redemption Percentage:
                                        Page 7052
                                         [ ] One-week average yield
                                         [ ] One-month average yield

Authorized Denomination:          Index Maturity:                          Annual Redemption Percentage Reduction:
(If other than U.S. dollars)

Specified Currency:                                                        Optional Repayment Date(s):
(If other than U.S. dollars)

Exchange Rate:                                                             Price at Optional Repayment Date:

Option to Receive Payments                                                 Interest Calculation:
 in Specified Currency:           ___Yes                ___No              [ ] Regular Floating Rate Note
                                                                           [ ] Floating Rate/Fixed Rate Note
                                                                               Fixed Rate Commencement Date:
                                                                               Fixed Interest Rate:
                                                                           [ ] Inverse Floating Rate Note
                                                                               Fixed Interest Rate

Indexed Currency:                 Spread:

Base Exchange Rate:               Spread Multiplier:

Calculation Agent:                Maximum Interest Rate:

Reference Dealers:                Minimum Interest Rate:

Sinking Fund:                     Exchange Rate Agent:

Total Amount of OID:

Yield to Maturity:

Initial Accrual Period OID:

Option to Elect Repayment:        ___ Yes               ___ No

Optional Interest Rate Reset:     ___ Yes               ___ No

Optional Reset Dates:

Optional Extension of Maturity:   ___ Yes               ___ No

Length of Extension Period:

Number of Extension Periods:
</TABLE>

                                        3
<PAGE>

<TABLE>
<S>                               <C>                   <C>
Final Maturity Date:

Depositary:

Optional Redemption:              ___ Yes               ___ No

Other Provisions:
</TABLE>

                                        4
<PAGE>

      THE TERMS OF THE PRICING SUPPLEMENT ATTACHED HERETO (THE "PRICING
SUPPLEMENT") ARE INCORPORATED HEREIN BY REFERENCE AND TO THE EXTENT INCONSISTENT
HEREWITH SUPERCEDE THE PROVISIONS OF THIS NOTE.

      DaimlerChrysler North America Holding Corporation, a Delaware corporation
(the "Issuer", which term includes any successor Person under the Indenture
referred to on the reverse hereof), for value received, hereby promise to pay to
Cede & Co., as nominee for The Depository Trust Company, or registered assigns,
the Principal Amount stated above, or the Final Redemption Amount if one is
specified in the attached Pricing Supplement, in the Specified Currency (as
defined below) [In the case of Securities which are not Amortizing Notes the
following is deemed inserted: on the Maturity Date stated above] [In the case of
Amortizing Notes the following is deemed inserted: in installments on the
Installment Dates specified in the attached Pricing Supplement]. In addition,
the Issuer promises to pay interest, if any, on the Principal Amount stated
above from the Original Issue Date stated above, or from the most recent
Interest Payment Date for which interest has been paid or duly provided, but not
including the applicable Interest Payment Date or Date of Maturity, as the case
may be, pursuant to the applicable provisions specified on the reverse hereof,
in the attached Pricing Supplement and in the Indenture, until the principal
hereof is paid or made available for payment; provided, that if the Original
Issue Date is after a Regular Record Date and before the Interest Payment Date
immediately following such Regular Record Date, interest payments will commence
on the second Interest Payment Date following the Original Issue Date; and
provided, further, that interest payable at the date of Maturity will be payable
to the Person to whom principal shall be payable. Any such interest not so
punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose
name this 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 7 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 Stock Exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such Stock Exchange,
all as more fully provided in the Indenture.

      [If this Security is not to bear interest prior to Maturity the following
is deemed inserted: The principal of this Security shall not bear interest
except in the case of a default in the payment of principal upon acceleration,
upon redemption or at Maturity and in such case the overdue principal of this
Security shall bear interest at the interest rate per annum specified in the
attached Pricing Supplement (or, if this Security is an Original Issue Discount
Note, the Yield to Maturity specified in the attached Pricing Supplement) (to
the extent that the payment of such interest shall be legally enforceable),
which shall accrue from the date of such default in payment to the date payment
of such principal has been made or duly provided for. Interest on any overdue
principal shall be payable on demand. Any such interest on any overdue principal
that is not so paid on demand shall bear interest at the interest rate per annum
specified in the attached Pricing Supplement (or, if this Security is an
Original Issue Discount Note, the Yield to Maturity specified in the attached
Pricing Supplement) (to the extent that the payment of such interest shall be
legally enforceable), which shall accrue from the date of such demand for
payment to the date payment of such interest has been made or duly provided for,
and such interest shall also be payable on demand.]

<PAGE>

      The principal of (and premium, if any) and interest, if any, on this
Security are payable by the Issuer in such currency or currency unit as
specified in the attached Pricing Supplement (the "Specified Currency"). If so
specified in the attached Pricing Supplement, except as provided below, payments
of principal of (and premium, if any) and interest, if any, with respect to any
Security denominated in other than United States Dollars will be made in United
States Dollars if the Holder on the relevant Regular Record Date or at Maturity,
as the case may be, has transmitted a written request for such payment in United
States Dollars to the Paying Agent at its Principal Office on or prior to such
Regular Record Date or the date 15 days prior to Maturity, as the case may be.
Such request may be delivered by mail, by hand or by cable, telex or any other
form of facsimile transmission. Any such request made with respect to any
Security by a Holder will remain in effect with respect to any further payments
of principal, and premium, if any, and interest, if any, with respect to such
Security payable to such Holder, unless such request is revoked by written
notice received by such Paying Agent on or prior to the relevant Regular Record
Date or the date 15 days prior to Maturity, as the case may be (but no such
revocation may be made with respect to payments made on any such Security if an
Event of Default or default as specified in Section 501 of the Indenture
referred to on the reverse hereof has occurred with respect thereto or upon the
giving of a notice of redemption).

      The Issuer will appoint and at all times maintain a Paying Agent
authorized by the Issuer to pay the principal of (and premium, if any) and
interest, if any, on Securities of this series on behalf of the Issuer and
having an office or agency in The City of New York, where Securities of this
series may be presented or surrendered for payment and where notices,
designations or requests in respect of payments with respect to Securities of
this series may be served. The Issuer has initially appointed JPMorgan Chase
Bank, N.A. as such Paying Agent, with its Principal Office currently at 4 New
York Plaza, New York, New York 10004, Attention: Capital Markets Fiduciary
Services. The Issuer will give prompt written notice to the Trustee of any
change in such appointment.

      All payments on this Security in United States Dollars will be made by
transfer of immediately available funds to an account of the Depositary or its
nominee as designated by the Depositary or its nominee.

      All payments on this Security in a Specified Currency other than United
States Dollars will be made in the manner set forth on the reverse hereof.

      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.

      In the event of any conflict between the provisions stated herein, or the
provisions incorporated herein by reference and/or the provisions set forth in
the attached Pricing Supplement, the provisions in the attached Pricing
Supplement will prevail.

      Terms used in this Security and not defined herein shall have the meanings
assigned to them in the attached Pricing Supplement or, if not defined in the
attached Pricing Supplement, in the Indenture.

                                        6
<PAGE>

      Unless the certificate of authentication hereon has been executed by the
Trustee, directly or through an Authenticating Agent, by manual signature of an
authorized signatory, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

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

Dated:                                            DAIMLERCHRYSLER NORTH AMERICA
                                                  HOLDING CORPORATION

                                                  By:___________________________
                                                     Name:
                                                     Title:

CERTIFICATE OF AUTHENTICATION

      This is one of the Securities of the series designated in and issued under
the Indenture described herein.

Dated:

JPMORGAN CHASE BANK, N.A., as Trustee

[If this Certificate of Authentication is executed by an Authenticating Agent
the following is deemed inserted:

By:___________________________________
          As Authenticating Agent]

By:___________________________________
          Authorized Signatory

                                        7
<PAGE>

                      REVERSE OF REGISTERED GLOBAL SECURITY

                DAIMLERCHRYSLER NORTH AMERICA HOLDING CORPORATION

                                MEDIUM-TERM NOTE

                                    SERIES E

                  IRREVOCABLY AND UNCONDITIONALLY GUARANTEED BY

                               DAIMLERCHRYSLER AG

            This global Security is one of a duly authorized issue of securities
of the Issuer (herein called the "Securities"), issued and to be issued in one
or more series under an indenture, dated as of September 17, 1996 (the "1996
Indenture"), among Daimler-Benz North America Corporation (now DaimlerChrysler
North America Holding Corporation), Daimler-Benz Canada Inc. (now
DaimlerChrysler Canada Finance Inc.) and Daimler-Benz International Finance B.V.
(now DaimlerChrysler International Finance Inc.), as issuers, Daimler-Benz
Aktiengesellschaft (succeeded by DaimlerChrysler AG), as guarantor and JPMorgan
Chase Bank, N.A., as trustee (herein called the "Trustee" which term includes
any successor to such Trustee under the Indenture), as supplemented by the First
Supplemental Indenture, dated as of December 21, 1998, among the Issuer,
DaimlerChrysler AG (as successor to Daimler-Benz Aktiengesellschaft), a stock
corporation organized and existing under the laws of the Federal Republic of
Germany, as guarantor (the "Guarantor"), DaimlerChrysler Canada Finance Inc., a
Quebec corporation, DaimlerChrysler International Finance B.V., a company
established in Utrecht, The Netherlands, and the Trustee (the "First
Supplemental Indenture", and together with the 1996 Indenture, the "Indenture"),
to which the 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 Issuer, the Guarantor, the Trustee, the
Paying Agent 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. The Securities of this series as
issued by the Issuer pursuant to the Indenture may be issued from time to time
in an aggregate principal amount of up to U.S. $10,000,000,000, or the United
States Dollar equivalent thereof in Foreign Currencies or currency units, or
such greater amount if any such Securities are Indexed Notes or are issued at an
original issue discount, as shall result in aggregate gross proceeds of
$10,000,000,000; provided that such amount may be decreased or increased if duly
authorized by the Issuer or the Guarantor. For purposes of the preceding
sentence, the United States Dollar equivalent of any Securities denominated in a
Specified Currency other than United States Dollars will be determined by the
Currency Determination Agent (as defined below) on the basis of the Market
Exchange Rate (as defined below) for such Specified Currency on the Original
Issue Date of such Securities (or, if such rate is not then available, the
Market Exchange Rate most recently available prior thereto).

            Subject to applicable provisions of law and the attached Pricing
Supplement, this Security shall be subject to the following provisions as
applicable:

<PAGE>

            Fixed Rate Notes

            If this Security is a Fixed Rate Note, unless otherwise specified in
the attached Pricing Supplement, each Fixed Rate Note will bear interest from
its Original Issue Date at the annual rate or rates specified on the attached
Pricing Supplement. Unless otherwise specified in the attached Pricing
Supplement, payments of interest on any Fixed Rate Note with respect to any
Interest Payment Date will include interest accrued from and including the
Original Issue Date, or the next preceding Interest Payment Date, to but
excluding the applicable Interest Payment Date or the date of Maturity. Fixed
Rate Notes may bear one or more annual rates of interest during the periods or
under the circumstances specified herein and in the attached Pricing Supplement.
Unless otherwise specified in the attached Pricing Supplement, interest on the
Fixed Rate Notes will be computed on the basis of a 360-day year of twelve
30-day months.

            Unless otherwise specified in the attached Pricing Supplement, the
Interest Payment Dates for Fixed Rate Notes other than Amortizing Notes will be
June 15 and December 15 of each year, and the Regular Record Dates will be May
31 and November 30 (whether or not a Business Day) of each year. Unless
otherwise specified in the attached Pricing Supplement, the Regular Record Dates
with respect to Fixed Rate Amortizing Notes will be the 15th day (whether or not
a Business Day) next preceding each Interest Payment Date.

            Unless otherwise specified in the attached Pricing Supplement,
payments of principal and interest on Fixed Rate Amortizing Notes will be made
either quarterly on each March 15, June 15, September 15 and December 15 or
semiannually on each June 15 and December 15, as specified in the attached
Pricing Supplement, and at Maturity. Unless otherwise specified in the attached
Pricing Supplement, if any Interest Payment Date or the Maturity for any Fixed
Rate Note falls on a day that is not a Business Day, payment of principal of
(and premium, if any) and interest, if any, with respect to such Note will be
made on the next succeeding Business Day with the same force and effect as if
made on the due date, and no interest shall be payable on the date of payment
for the period from and after the due date. Unless otherwise specified in the
attached Pricing Supplement, payments with respect to Fixed Rate Amortizing
Notes will be applied first to interest due and payable thereon and then to the
reduction of the unpaid principal amount thereof. A table, formula or formulae
setting forth repayment information with respect to each Fixed Rate Amortizing
Note will be set forth in the attached Pricing Supplement and will be available
upon request from the Paying Agent to the subsequent Holders hereof.

            Floating Rate Notes

            If this Security is a Floating Rate Note, each Floating Rate Note
will bear interest at a rate determined by reference to one or more interest
rate bases (each an "Interest Rate Basis"), which may be adjusted by adding to
or subtracting from the Interest Rate Basis a Spread and/or by multiplying the
Interest Rate Basis by a Spread Multiplier. The "Spread" is the number of basis
points (one one-hundredth of a percentage point) specified in the attached
Pricing Supplement to be added to or subtracted from the Interest Rate Basis of
such Note, and the "Spread Multiplier" is the percentage specified in the
attached Pricing Supplement by which the Interest Rate Basis will be multiplied
to determine the interest rate for such Note. Unless otherwise specified in the
attached Pricing Supplement, the attached Pricing Supplement will designate one
or more of the following Interest Rate Bases as applicable to each Floating Rate

                                        9
<PAGE>

Note: (a) the CD Rate (a "CD Rate Note"), (b) the CMT Rate (a "CMT Rate Note"),
(c) the Commercial Paper Rate (a "Commercial Paper Rate Note"), (d) the Eleventh
District Cost of Funds Rate (an "Eleventh District Cost of Funds Rate Note"),
(e) the Federal Funds Open Rate (a "Federal Funds Open Rate Note"), (f) the
Federal Funds Rate (a "Federal Funds Rate Note"), (g) LIBOR (a "LIBOR Note"),
(h) the Prime Rate (a "Prime Rate Note"), (i) the Treasury Rate (a "Treasury
Rate Note"), or (j) such other Interest Rate Basis or interest rate formula as
is set forth in the attached Pricing Supplement.

            Unless otherwise specified in the attached Pricing Supplement, each
Floating Rate Note will bear interest from its Original Issue Date to the first
Interest Reset Date (as defined below) for such Floating Rate Note at the
Initial Interest Rate (the "Initial Interest Rate") specified herein and in the
attached Pricing Supplement. Thereafter, unless otherwise specified in the
attached Pricing Supplement, the interest rate on each Floating Rate Note for
each Interest Reset Period (as defined below) will be equal to the interest rate
calculated by reference to the Interest Rate Basis or Bases specified herein and
in the attached Pricing Supplement plus or minus the Spread, if any, and/or
multiplied by the Spread Multiplier, if any. The Spread and/or Spread Multiplier
for a Floating Rate Note may be subject to adjustment during an Interest Reset
Period under circumstances specified herein and in the attached Pricing
Supplement.

            Notwithstanding the foregoing, if a Floating Rate Note is designated
as a "Floating Rate/Fixed Rate Note" in the attached Pricing Supplement, then,
unless otherwise specified in the attached Pricing Supplement, such Floating
Rate Note will bear interest at the rate determined by reference to the
applicable Interest Rate Basis (i) plus or minus the applicable Spread, if any,
and/or (ii) multiplied by the applicable Spread Multiplier, if any. Unless
otherwise specified in the attached Pricing Supplement, commencing on the first
Interest Reset Date, the rate at which interest on such Floating Fate/Fixed Rate
Note shall be payable shall be reset as of each Interest Reset Date; provided,
however, that (i) the interest rate in effect for the period from the Original
Issue Date to the first Interest Reset Date will be the Initial Interest Rate,
and (ii) the interest rate in effect commencing on, and including, the date on
which interest begins to accrue on a fixed rate basis (the "fixed rate
commencement date") (specified in the attached Pricing Supplement) to Maturity
shall be the fixed interest rate specified in the attached Pricing Supplement,
or if no such fixed interest rate is so specified, the interest rate in effect
thereon on the day immediately preceding such fixed rate commencement date. If a
Floating Rate Note is designated as an "Inverse Floating Rate Note" in the
attached Pricing Supplement, then, except as described below and unless
otherwise specified in the attached Pricing Supplement, such Floating Rate Note
will bear interest equal to the fixed interest rate specified in the attached
Pricing Supplement minus the rate determined by reference to the applicable
Interest Rate Basis (i) plus or minus the applicable Spread, if any, and/or (ii)
multiplied by the applicable spread multiplier, if any; provided, however, that
unless otherwise specified in the attached Pricing Supplement, the interest rate
thereon will not be less than zero percent. Unless otherwise specified in the
attached Pricing Supplement, commencing on the first Interest Reset Date, the
rate at which interest on such Inverse Floating Rate Note is payable shall be
reset as of each Interest Reset Date; provided, however, that the interest rate
in effect for the period from the Original Issue Date to the first Interest
Reset Date will be the Initial Interest Rate.

            The Issuer will appoint an agent (a "Calculation Agent") to
calculate interest rates on Floating Rate Notes. Unless otherwise specified in
the attached Pricing Supplement, the Calculation Agent for each Floating Rate
Note will be JPMorgan Chase Bank, N.A. All

                                       10
<PAGE>

determinations to be made by the Calculation Agent shall be at its sole
discretion and shall, in the absence of manifest error, be conclusive for all
purposes and binding on all Holders and beneficial owners of Floating Rate
Notes.

            Unless otherwise specified in the attached Pricing Supplement, the
interest rate on each Floating Rate Note will be reset daily, weekly, monthly,
quarterly, semiannually or annually, or at such other intervals (such type or
period being the "Interest Reset Period" for such Note), in each case as
specified in the attached Pricing Supplement, and such interest rate will be
reset on the Interest Reset Dates specified in the attached Pricing Supplement
(each date upon which interest is so reset an "Interest Reset Date"). Unless
otherwise specified in the attached Pricing Supplement, the Interest Reset Dates
will be, in the case of Floating Rate Notes that reset daily, each Business Day;
in the case of Floating Rate Notes (other than Treasury Rate Notes) that reset
weekly, Wednesday of each week; in the case of Treasury Rate Notes that reset
weekly, Tuesday of each week, except as provided below; in the case of Floating
Rate Notes that reset monthly, the third Wednesday of each month (with the
exception of monthly reset Eleventh District Cost of Funds Rate Notes, which
will reset on the first calendar day of the month); in the case of Floating Rate
Notes that reset quarterly, the third Wednesday of each March, June, September
and December of each year; in the case of Floating Rate Notes that reset
semiannually, the third Wednesday of each of two months of each year specified
in the attached Pricing Supplement; and, in the case of Floating Rate Notes that
reset annually, the third Wednesday of the month of each year specified in the
attached Pricing Supplement; provided, however, that (i) the interest rate in
effect from the Original Issue Date to the first Interest Reset Date will be the
Initial Interest Rate specified in the attached Pricing Supplement for such
Floating Rate Note and (ii) if a Floating Rate Note is designated as a "Fixed
Rate/Floating Rate Note," in the attached Pricing Supplement, the interest rate
commencing on and including the fixed rate commencement date (specified in the
attached Pricing Supplement) to but excluding the fixed rate termination date
(specified in the attached Pricing Supplement) will be the fixed interest rate
specified therein.

            Unless otherwise specified in the attached Pricing Supplement, if an
Interest Reset Date for a Floating Rate Note is not a Business Day, the Interest
Reset Date for such Floating Rate Note shall be postponed to the next succeeding
day that is a Business Day, except that, in the case of a LIBOR Note, if such
Business Day is in the next succeeding calendar month, such Interest Reset Date
shall be the immediately preceding Business Day. Unless otherwise specified in
the attached Pricing Supplement, in the case of Treasury Rate Notes, if the
Treasury Rate Interest Determination Date (as defined below) falls on an
Interest Reset Date, then the Interest Reset Date will be postponed to the next
succeeding Business Day.

            Unless otherwise specified in the attached Pricing Supplement,
"Business Day" means any day, other than a Saturday or Sunday, that is neither a
legal holiday nor a day on which commercial banks are authorized or required by
law, regulation or executive order to close in The City of New York; provided,
however, that, with respect to a Note denominated in a Specified Currency other
than United States Dollars, the day must also not be 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 must also be
a day on which the Trans-European Automated Real-Time Gross Settlement Express
Transfer (TARGET) system is open); provided,

                                       11
<PAGE>

further, that, with respect to LIBOR Notes, the day must also be a London
Business Day (as defined below).

            "London Business Day" means a day on which commercial banks are open
for business (including dealings in the LIBOR Currency) (as defined below) in
London.

            "LIBOR Currency" means the currency specified in the attached
Pricing Supplement as to which LIBOR shall be calculated or, if no currency is
specified in the attached Pricing Supplement, United States Dollars.

            "Principal Financial Center" means, as applicable (i) the capital
city of the country issuing the Specified Currency, or (ii) the capital city of
the country to which the LIBOR Currency relates; provided, however, that with
respect to United States Dollars, Australian dollars, Canadian dollars, Euro,
South African rand and Swiss francs, the "Principal Financial Center" will be
The City of New York, Sydney, Toronto, London, Johannesburg and Zurich,
respectively.

            Unless otherwise specified in the attached Pricing Supplement, the
interest rate for each Interest Reset Period will be the rate determined as of
the Interest Determination Date pertaining to the Interest Reset Date for such
Interest Reset Period. Unless otherwise specified in the attached Pricing
Supplement, the "Interest Determination Date" pertaining to an Interest Reset
Date for (a) a Federal Funds Open Rate Note (the "Federal Funds Open Rate
Interest Determination Date"), (b) a Federal Funds Rate Note (the "Federal Funds
Interest Determination Date") and (c) a Prime Rate Note (the "Prime Rate
Interest Determination Date") will be the Business Day preceding such Interest
Reset Date. Unless otherwise specified in the attached Pricing Supplement, the
Interest Determination Date pertaining to an Interest Reset Date for (a) a CD
Rate Note (the "CD Rate Interest Determination Date"), (b) a CMT Rate Note (the
"CMT Rate Interest Determination Date") or (c) a Commercial Paper Rate Note (the
"Commercial Paper Rate Interest Determination Date") will be the second Business
Day preceding such Interest Reset Date. Unless otherwise specified in the
attached Pricing Supplement, the Interest Determination Date pertaining to an
Interest Reset Date for an Eleventh District Cost of Funds Rate Note (the
"Eleventh District Cost of Funds Rate Interest Determination Date") will be the
last working day of the month immediately preceding the month in which such
Interest Reset Date falls on which the Federal Home Loan Bank of San Francisco
(the "FHLB of San Francisco") publishes the Index (as defined below). Unless
otherwise specified in the attached Pricing Supplement, the Interest
Determination Date pertaining to an Interest Reset Date for a LIBOR Note (the
"LIBOR Interest Determination Date") will be the second London Business Day
immediately preceding each Interest Reset Date. Unless otherwise specified in
the attached Pricing Supplement, the Interest Determination Date pertaining to
an Interest Reset Date for a Treasury Rate Note (the "Treasury Rate Interest
Determination Date") will be the day of the week in which such Interest Reset
Date falls on which direct obligations of the United States ("Treasury bills")
would normally be auctioned. Treasury bills are usually sold at auction on
Monday of each week, unless that day is a legal holiday, in which case the
auction is usually held on the following Tuesday, except that such auction may
be held on the preceding Friday. If an auction is so held on the preceding
Friday, such Friday will be the Treasury Rate Interest Determination Date
pertaining to the Interest Reset Period commencing on the next succeeding week.
If the auction is held on the following Tuesday or any other Interest Reset
Date, then the Interest Reset Date that otherwise would have been on that day
will be postponed to the next

                                       12
<PAGE>

Business Day. If no auction is held for a particular week, the Treasury Rate
Interest Determination Date pertaining to the Interest Reset Date occurring in
that week will be the first Business Day of that week. Unless otherwise
specified in the attached Pricing Supplement, the Interest Determination Date
pertaining to a Floating Rate Note the interest rate of which is determined with
reference to two or more Interest Rate Bases will be the latest Business Day
which is at least two Business Days prior to such Interest Reset Date for such
Floating Rate Note on which each Interest Rate Basis is determinable. Each
Interest Rate Basis will be determined on such date and the applicable interest
rate will take effect on the related Interest Reset Date.

            Unless otherwise specified in the attached Pricing Supplement, 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 preceding the applicable Interest Payment
Date or Maturity, as the case may be.

            Except as provided below or in the attached Pricing Supplement,
interest on Floating Rate Notes, including Floating Rate Amortizing Notes, will
be payable (i) in the case of Floating Rate Notes that reset daily, weekly or
monthly, on the third Wednesday of each month or on the third Wednesday of
March, June, September and December of each year, as specified in the attached
Pricing Supplement; (ii) in the case of Floating Rate Notes, including Floating
Rate Amortizing Notes, that reset quarterly, on the third Wednesday of March,
June, September and December of each year; (iii) in the case of Floating Rate
Notes, including Floating Rate Amortizing Notes, that reset semiannually, on the
third Wednesday of each of two months of each year specified in the attached
Pricing Supplement; and (iv) in the case of Floating Rate Notes, including
Floating Rate Amortizing Notes, that reset annually, on the third Wednesday of
one month of each year specified in the attached Pricing Supplement (each such
day being an "Interest Payment Date") and, in each case, at Maturity.

            Unless otherwise specified in the attached Pricing Supplement, if
any Interest Payment Date, other than Maturity, for any Floating Rate Note would
otherwise be a day that is not a Business Day, such Interest Payment Date shall
be postponed to the next day that is a Business Day, except that in the case of
a LIBOR Note, if such Business Day is in the next succeeding calendar month,
such Interest Payment Date shall be the immediately preceding Business Day. If
the Maturity for any Floating Rate Note falls on a day that is not a Business
Day, payment of principal of (and premium, if any) and interest, if any, with
respect to such Note will be made on the next succeeding Business Day with the
same force and effect as if made on the due date, and no interest shall be
payable on the date of payment for the period from and after the due date.
Unless otherwise specified in the attached Pricing Supplement, the Regular
Record Dates for each Floating Rate Note will be the 15th day (whether or not a
Business Day) next preceding each Interest Payment Date.

            Unless otherwise specified in the attached Pricing Supplement,
payments with respect to Floating Rate Amortizing Notes will be applied first to
interest due and payable thereon and then to the reduction of the unpaid
principal amount thereof. A table, formula or formulae setting forth repayment
information with respect to each Floating Rate Amortizing Note will be set forth
in the attached Pricing Supplement and will be available upon request from the
Paying Agent to the subsequent Holders hereof.

                                       13
<PAGE>

            Unless otherwise specified in the attached Pricing Supplement, each
payment of interest on a Floating Rate Note will include interest accrued from
and including the Original Issue Date, or the next preceding Interest Payment
Date to which interest has been paid or duly provided for, to but excluding the
applicable Interest Payment Date or the date of Maturity. Unless otherwise
specified in the attached Pricing Supplement, accrued interest from the Original
Issue Date, or from the last date to which interest has been paid or duly
provided for, will be calculated by multiplying the face amount of a Floating
Rate Note by an accrued interest factor computed by adding the interest factor
calculated for each day from the Original Issue Date, or from the last date to
which interest has been paid or duly provided for, to but excluding the date for
which accrued interest is being calculated. Unless otherwise specified in the
attached Pricing Supplement, the interest factor for each such day is computed
by dividing the interest rate applicable to such date by 360, in the case of CD
Rate Notes, Commercial Paper Rate Notes, Eleventh District Cost of Funds Rate
Notes, Federal Funds Open Rate Notes, Federal Funds Rate Notes, LIBOR Notes and
Prime Rate Notes, or by the actual number of days in the year, in the case of
CMT Rate Notes or Treasury Rate Notes. The interest factor for Floating Rate
Notes for which the interest rate is calculated with reference to two or more
Interest Rate Bases will be calculated in each period in the same manner as if
only the applicable Interest Rate Basis specified in the attached Pricing
Supplement applied.

            All percentages resulting from any calculation on Floating Rate
Notes will be rounded, unless otherwise specified in the attached Pricing
Supplement, if necessary, to the nearest one hundred-thousandth of a percentage
point with five or more one-millionths of one percentage point being rounded
upward (e.g., 5.876545% or .05876545, being rounded to 5.87655% or .0587655,
respectively), and all currency amounts used in or resulting from any
calculation on Floating Rate Notes will be rounded, in the case of United States
Dollars, to the nearest cent or, in the case of a Floating Rate Note denominated
in a Specified Currency other than United States Dollars, to the nearest unit
(with one-half cent or unit being rounded upward).

            The Calculation Agent will, upon the request of the Holder of any
Floating Rate Note, provide the interest rate then in effect and, if determined,
the interest rate that will become effective as a result of a determination made
for the next Interest Reset Date with respect to such Floating Rate Note.

            If specified in the attached Pricing Supplement, any Floating Rate
Note may also have either or both of the following: (i) a maximum numerical
interest rate limitation, or ceiling, on the rate of interest that may accrue
during any Interest Reset Period (the "Maximum Interest Rate") and (ii) a
minimum numerical interest rate limitation, or floor, on the rate of interest
that may accrue during any Interest Reset Period (the "Minimum Interest Rate").
The interest rate on any Floating Rate Note will in no event be higher than the
maximum rate permitted by New York law, as the same may be modified by United
States law of general application.

            "Index Maturity" means, with respect to a Floating Rate Note, the
period to maturity of the instrument or obligation with respect to which the
Interest Rate Basis will be calculated, as specified in the attached Pricing
Supplement.

            Interest rates with respect to Floating Rate Notes will be
determined by the Calculation Agent as follows:

                                       14
<PAGE>

            CD Rate Notes

            If this security is a CD Rate Note, it will bear interest at the
interest rate (calculated with reference to the CD Rate and the Spread and/or
Spread Multiplier, if any), specified herein and in the attached Pricing
Supplement.

            Unless otherwise specified in the attached Pricing Supplement, "CD
Rate" means, with respect to any CD Rate Interest Determination Date, the rate
on such date for negotiable United States Dollar certificates of deposit having
the Index Maturity designated in the attached Pricing Supplement as published in
H.15(519) (as defined below), opposite the caption "CDs (secondary market)" or,
if not so published by 3:00 p.m., New York City time, on the Calculation Date
pertaining to such CD Rate Interest Determination Date, the CD Rate will be the
rate on such CD Rate Interest Determination Date for negotiable United States
Dollar certificates of deposit having the Index Maturity designated in the
attached Pricing Supplement as published in the H.15 Daily Update (as defined
below), or such other recognized electronic service used for the purpose of
displaying the applicable rate, opposite the caption "CDs (secondary market)."
If such rate is not yet published in either H.15(519) or the H.15 Daily Update
by 3:00 p.m., New York City time, on the Calculation Date pertaining to such CD
Rate Interest Determination Date, then the CD Rate for such CD Rate Interest
Determination Date will be calculated by the Calculation Agent and will be the
arithmetic mean of the secondary market offered rates for Negotiable CDs (as
defined below) as of 10:00 a.m., New York City time, on such CD Rate Interest
Determination Date as quoted by three leading nonbank dealers in negotiable
United States Dollar certificates of deposit in The City of New York selected by
the Calculation Agent; provided, however, that if the dealers selected as
aforesaid by the Calculation Agent are not quoting as mentioned in this
sentence, the CD Rate with respect to such CD Rate Interest Determination Date
will be the CD Rate in effect on such CD Rate Interest Determination Date.

            "Negotiable CDs" means negotiable United States Dollar certificates
of deposit of major United States money market banks with a remaining maturity
closest to the Index Maturity specified in the attached Pricing Supplement and
in an amount that is representative for a single transaction in that market at
that time.

            "H.15(519)" means the weekly statistical release designated as
H.15(519), available through the world-wide-web site of the Board of Governors
of the Federal Reserve System at
http://www.federalreserve.gov/releases/h15/current, or any successor site or
publication.

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

            CMT Rate Notes

            If this Security is a CMT Rate Note, it will bear interest at the
interest rate (calculated with reference to the CMT Rate and the Spread and/or
Spread Multiplier, if any) specified herein and in the attached Pricing
Supplement.

                                       15
<PAGE>

            Unless otherwise specified in the attached Pricing Supplement, "CMT
Rate" means, with respect to any CMT Rate Interest Determination Date:

            (A) if CMT Moneyline Telerate Page 7051 is specified on the attached
Pricing Supplement, the percentage equal to the yield for United States Treasury
securities at "constant maturity" having the Index Maturity designated in the
attached Pricing Supplement as published in H.15(519) opposite the caption
"Treasury constant maturities", as the yield is displayed on Moneyline Telerate,
or any successor service, on page 7051, or any other page as may replace page
7051 on that service ("Moneyline Telerate Page 7051"), for the CMT Rate Interest
Determination Date. If such rate is no longer displayed on Moneyline Telerate
Page 7051 or is not so displayed by 3:00 p.m., New York City time, on the
Calculation Date pertaining to such CMT Interest Determination Date, then the
CMT Rate for 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 designated in the attached Pricing Supplement and for
the CMT Rate Interest Determination Date as published in H.15(519) opposite the
caption "Treasury constant maturities". If such rate is no longer published or
is not published by 3:00 p.m., New York City time, on the Calculation Date
pertaining to such CMT Interest Determination Date, then the CMT Rate for such
CMT Rate Interest Determination Date will be the rate on the CMT Rate Interest
Determination Date for the period of the Index Maturity designated in the
attached Pricing Supplement 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 such rate is not so
published by 3:00 p.m., New York City time, on the Calculation Date pertaining
to such CMT Interest Determination Date, then the CMT Rate for such CMT Rate
Interest Determination Date will be the rate calculated by the Calculation Agent
as a yield to maturity based on the arithmetic mean of the secondary market bid
prices at approximately 3:30 p.m., New York City time, on the 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 selected by the Calculation Agent
and eliminating the highest quotation or, in the event of equality, one of the
highest, and the lowest quotation or, in the event of equality, one of the
lowest, for United States Treasury securities with an original maturity equal to
the Index Maturity designated in the attached Pricing Supplement, a remaining
term to maturity no more than one year shorter than such Index Maturity and in a
principal amount that is representative for a single transaction in the
securities in that market at that time. If fewer than five but more than two of
such Reference Dealers are quoting as described above, then the CMT Rate will be
based on the arithmetic mean of the bid prices obtained pursuant to the previous
sentence and neither the highest nor the lowest of such quotes will be
eliminated. If fewer than three of such Reference Dealers are quoting as
described above, then the CMT Rate will be the rate calculated by the
Calculation Agent as a yield to maturity based on the arithmetic mean of the
secondary market bid prices as of approximately 3:30 p.m., New York City time,
on the 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 designated in the attached Pricing Supplement, a
remaining term to maturity closest to such Index Maturity and in a principal
amount that is representative for a single transaction in the securities in that
market at that time. If fewer than five but more than two of

                                       16
<PAGE>

such Reference Dealers are quoting as described above, then the CMT Rate will be
based on the arithmetic mean of the bid prices obtained pursuant to the previous
sentence and neither the highest nor the lowest of the quotations will be
eliminated; provided, however, that if the Reference Dealers selected as
aforesaid by the Calculation Agent are not quoting as mentioned in this
sentence, the CMT Rate with respect to such CMT Rate Interest Determination Date
will be the CMT Rate in effect on such CMT Rate Interest Determination Date; or

            (B) if CMT Moneyline Telerate Page 7052 is specified on the attached
Pricing Supplement, the percentage equal to the specified one-week or one-month
average yield for United States Treasury securities at "constant maturity"
having the Index Maturity designated in the attached Pricing Supplement as
published in H.15(519) opposite the caption "Treasury constant maturities", as
the yield is displayed on Moneyline Telerate, or any successor service, on page
7052, or any other page as may replace page 7052 on that service ("Moneyline
Telerate Page 7052"), for the week or month, as applicable, ended immediately
preceding the week or month, as applicable, in which the CMT Rate Interest
Determination Date falls. If such rate is no longer displayed on Moneyline
Telerate Page 7052 or is not so displayed by 3:00 p.m., New York City time, on
the Calculation Date pertaining to such CMT Interest Determination Date, then
the CMT Rate for such CMT Rate Interest Determination Date will be the
percentage equal to the specified one-week or one-month average yield for United
States Treasury securities at "constant maturity" having the Index Maturity
designated in the attached Pricing Supplement as published in H.15(519) opposite
the caption "Treasury constant maturities" for the week or month, as applicable,
ended immediately preceding the week or month, as applicable, in which the CMT
Rate Interest Determination Date falls. If such rate is no longer published or
is not published by 3:00 p.m., New York City time, on the Calculation Date
pertaining to such CMT Interest Determination Date, then the CMT Rate for such
CMT Rate Interest Determination Date will be the specified one-week or one-month
average yield for United States Treasury securities at "constant maturity"
having the Index Maturity designated in the attached Pricing Supplement as
otherwise announced by the Federal Reserve Bank of New York for the week or
month, as applicable, ended immediately preceding the week or month, as
applicable, in which the CMT Rate Interest Determination Date falls. If such
rate is not so published by 3:00 p.m., New York City time, on the Calculation
Date pertaining to such CMT Interest Determination Date, then the CMT Rate for
such CMT Rate Interest Determination Date will be the rate calculated by the
Calculation Agent as a yield to maturity based on the arithmetic mean of the
secondary market bid prices at approximately 3:30 p.m., New York City time, on
the 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 equal to
the Index Maturity designated in the attached Pricing Supplement, a remaining
term to maturity no more than one year shorter than such Index Maturity and in a
principal amount that is representative for a single transaction in the
securities in that market at that time. If fewer than five but more than two of
such Reference Dealers are quoting as described above, then the CMT Rate will be
based on the arithmetic mean of the bid prices obtained pursuant to the previous
sentence and neither the highest nor the lowest of the quotations will be
eliminated. If fewer than three of such Reference Dealers are quoting as
described above, then the CMT Rate will be the rate calculated by the
Calculation Agent as a yield to maturity based on the arithmetic mean of the
secondary market bid prices as of approximately 3:30 p.m., New York City time,
on the CMT Rate Interest Determination Date of three Reference Dealers selected
by the Calculation Agent

                                       17
<PAGE>

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 longer than the Index
Maturity designated in the attached Pricing Supplement, a remaining term to
maturity closest to such Index Maturity and in a principal amount that is
representative for a single transaction in the securities in that market at that
time. If fewer than five but more than two of such Reference Dealers are quoting
as described above, then the CMT Rate will be based on the arithmetic mean of
the bid prices obtained pursuant to the previous sentence and neither the
highest nor the lowest of the quotations will be eliminated; provided, however,
that if the Reference Dealers selected as aforesaid by the Calculation Agent are
not quoting as mentioned in this sentence, the CMT Rate with respect to such CMT
Rate Interest Determination Date will be the CMT Rate in effect on the CMT Rate
Interest Determination Date.

            If two United States Treasury securities with an original maturity
greater than the Index Maturity designated in the attached Pricing Supplement
have remaining terms to maturity equally close to such Index Maturity, the
quotations for the United States Treasury security with the shorter original
term to maturity will be used.

            Commercial Paper Rate Notes

            If this Security is a Commercial Paper Rate Note, it will bear
interest at the rate (calculated with reference to the Commercial Paper Rate and
the Spread and/or Spread Multiplier, if any) specified herein and in the
attached Pricing Supplement.

            Unless otherwise specified in the attached Pricing Supplement,
"Commercial Paper Rate" means, with respect to any Commercial Paper Rate
Interest Determination Date relating to a Commercial Paper Rate Note, the rate
calculated by the Calculation Agent as the Money Market Yield (as defined below)
on the Commercial Paper Rate Interest Determination Date of the rate for
commercial paper having the Index Maturity designated in the attached Pricing
Supplement, as published in H.15(519) opposite the caption "Commercial
paper/Nonfinancial". In the event that such rate is not published by 3:00 p.m.,
New York City time, on the Calculation Date pertaining to such Commercial Paper
Rate Interest Determination Date, then the Commercial Paper Rate shall be the
rate calculated by the Calculation Agent as the Money Market Yield of the rate
on such Commercial Paper Rate Interest Determination Date for commercial paper
having the Index Maturity designated in the attached Pricing Supplement as
published in the H.15 Daily Update or such other recognized electronic source
used for the purpose of displaying the applicable rate, opposite the caption
"Commercial paper/Nonfinancial." If by 3:00 p.m., New York City time, on such
Calculation Date such rate is not yet published in the H.15 Daily Update, then
the Commercial Paper Rate on such Commercial Paper Rate Interest Determination
Date shall be calculated by the Calculation Agent and shall be the Money Market
Yield of the arithmetic mean of the offered rates as of approximately 11:00
a.m., New York City time, on such Commercial Paper Rate Interest Determination
Date for commercial paper having the Index Maturity designated in the attached
Pricing Supplement placed for industrial issuers whose bond rating is "Aa," or
the equivalent, from a nationally recognized statistical rating agency as quoted
by three leading dealers of United States Dollar commercial paper in The City of
New York selected by the Calculation Agent; provided, however, that if the
dealers selected as aforesaid by the Calculation Agent are not quoting offered
rates as set forth above, the Commercial Paper Rate with respect to such

                                       18
<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:

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

where "D" refers to the per annum rate for the commercial paper, quoted on a
bank discount basis and expressed as a decimal; and "M" refers to the actual
number of days in the period for which interest is being calculated.

            Eleventh District Cost of Funds Rate Notes

            If this Security is an Eleventh District Cost of Funds Rate Note, it
will bear interest at the rates (calculated with reference to the Eleventh
District Cost of Funds Rate and the Spread and/or Spread Multiplier, if any)
specified herein and in the attached Pricing Supplement.

            Unless otherwise specified in the attached Pricing Supplement,
"Eleventh District Cost of Funds Rate" means, with respect to any Eleventh
District Cost of Funds Rate Interest Determination Date, the rate equal to the
monthly weighted average cost of funds for the calendar month 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
Moneyline Telerate, or any successor service, on page 7058 or any other page as
may replace that page on that service ("Moneyline 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
as of 11:00 a.m., San Francisco time, on the related Eleventh District Cost of
Funds Rate Interest Determination Date, the Eleventh District Cost of Funds Rate
for 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 preceding the month in which the Eleventh District Cost of Funds Rate
Interest Determination Date falls. If the FHLB of San Francisco fails to
announce the Index for the calendar month next preceding the month in which such
Eleventh District Cost of Funds Rate Interest Determination Date falls on or
before the Eleventh District Cost of Funds Rate Interest Determination Date,
then the Eleventh District Cost of Funds Rate for such Eleventh District Cost of
Funds Rate Interest Determination Date will be the Eleventh District Cost of
Funds Rate then in effect on such Eleventh District Cost of Funds Rate Interest
Determination Date.

            Federal Funds Open Rate

            If this Security is a Federal Funds Open Rate Note, it will bear
interest at the interest rate (calculated with reference to the Federal Funds
Open Rate and the Spread and/or Spread Multiplier, if any) specified herein and
in the attached Pricing Supplement.

                                       19
<PAGE>

            Unless otherwise specified in the attached Pricing Supplement,
"Federal Funds Open Rate" means, with respect to any Federal Funds Open Rate
Interest Determination Date, the opening rate on the Federal Funds Open Rate
Interest Determination Date for United States Dollar federal funds as displayed
under the heading "Federal Funds" and opposite the caption "Open" on Moneyline
Telerate, or any successor service, on page 5 or any other page as may replace
that page on that service ("Moneyline Telerate Page 5"). If such rate does not
appear on Moneyline Telerate Page 5 by 3:00 p.m., New York City time, on the
Calculation Date pertaining to such Federal Funds Open Rate, then the Federal
Funds Open Rate for such Federal Funds Open Rate Interest Determination Date
will be the opening rate on the Federal Funds Open Rate Interest Determination
Date for United States Dollar federal funds as displayed on the FEDFOPEN Index
on Bloomberg, which is the Fed Funds Opening Rate as reported by Garban Capital
Markets (or a successor) on Bloomberg. If such rate does not appear on FEDFOPEN
Index on Bloomberg by 3:00 p.m., New York City time, on the Calculation Date
pertaining to such Federal Funds Open Rate Interest Determination Date, then the
Federal Funds Open Rate for such Federal Funds Open Rate Interest Determination
Date will be the rate calculated by the Calculation Agent as the arithmetic mean
of the rates for the last transaction in overnight United States Dollar federal
funds arranged before 9:00 a.m., New York City time, on the Federal Funds Open
Rate Interest Determination Date by three leading brokers of United States
Dollar federal funds transactions in The City of New York selected by the
Calculation Agent; provided, however, that if fewer than three of the brokers
selected as aforesaid by the Calculation Agent are quoting as mentioned in this
sentence, the Federal Funds Open Rate with respect to such Federal Funds Open
Rate Interest Determination Date will be the Federal Funds Open Rate in effect
on such Federal Funds Open Rate Interest Determination Date.

            Federal Funds Rate Notes

            If this Security is a Federal Funds Rate Note, it will bear interest
at the interest rate (calculated with reference to the Federal Funds Rate and
the Spread and/or Spread Multiplier, if any) specified herein and in the
attached Pricing Supplement.

            Unless otherwise specified in the attached Pricing Supplement,
"Federal Funds Rate" means, with respect to any Federal Funds Rate Interest
Determination Date, the rate on such date for United States Dollar Federal Funds
as published in H.15(519) opposite the caption "Federal funds (effective)", as
displayed on Moneyline Telerate, or any successor service, on page 120 or any
other page as may replace that page on that service ("Moneyline Telerate Page
120"), or, if not so published by 3:00 p.m., New York City time, on the
Calculation Date pertaining to such Federal Funds Rate Interest Determination
Date, the Federal Funds Rate will be the rate on such Federal Funds Rate
Interest Determination Date for United States Dollar Federal Funds as published
in the H.15 Daily Update, or such other recognized electronic source used for
the purpose of displaying the applicable rate, opposite the caption "Federal
funds (effective)." If such rate is not published by 3:00 p.m., New York City
time, on the Calculation Date pertaining to such Federal Funds Rate Interest
Determination Date, then the Federal Funds Rate for such Federal Funds Rate
Interest Determination Date will 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 before 9:00 a.m., New York City time, on
such Federal Funds Rate Interest Determination Date arranged by three leading
brokers of United States Dollar Federal Funds transactions in The City of New
York selected by the Calculation Agent; provided, however, that if fewer than
three of the brokers selected as

                                       20
<PAGE>

aforesaid by the Calculation Agent are quoting as mentioned in this sentence,
the Federal Funds Rate with respect to such Federal Funds Rate Interest
Determination Date will be the Federal Funds Rate in effect on such Federal
Funds Rate Interest Determination Date.

            LIBOR Notes

            If this Security is a LIBOR Note, it will bear interest at the
interest rate (calculated with reference to LIBOR and the Spread and/or Spread
Multiplier, if any) specified herein and in the attached Pricing Supplement.

            Unless otherwise specified in the attached Pricing Supplement,
"LIBOR" for each Interest Reset Date will be determined by the Calculation Agent
as follows:

            (i) With respect to a LIBOR Interest Determination Date, LIBOR will
      be either: (A) if "LIBOR Moneyline Telerate" is specified in the attached
      Pricing Supplement or if such Pricing Supplement does not specify a source
      for LIBOR, the rate for deposits in the LIBOR Currency having the Index
      Maturity designated in the attached Pricing Supplement commencing on the
      related 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 in the attached
      Pricing Supplement, the rate calculated by the Calculation Agent as the
      arithmetic mean of the offered rates (unless the specified Designated
      LIBOR Page by its terms provides only for a single rate, in which case
      such single rate shall be used) for deposits in the LIBOR Currency having
      the Index Maturity designated in the attached Pricing Supplement and
      commencing on the related Interest Reset Date that appear or appears, as
      the case may be, on the Designated LIBOR Page as of 11:00 a.m., London
      time, on such LIBOR Interest Determination Date. If no rate appears on the
      Designated LIBOR Page (or, in the case of clause (i)(B) above, if the
      Designated LIBOR Page by its terms provides for more than a single rate
      but fewer than two offered rates appear on such Page), LIBOR in respect of
      such LIBOR Interest Determination Date will be determined as if the
      parties had specified the rate described in clause (ii) below.

            (ii) with respect to any LIBOR Interest Determination Date to which
      the last sentence of clause (i) above applies, the Calculation Agent will
      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 LIBOR Currency having the Index Maturity designated in the attached
      Pricing Supplement commencing on the related Interest Reset Date to prime
      banks in the London interbank market at approximately 11:00 a.m., London
      time, on such LIBOR Interest Determination Date and in a principal amount
      that is representative for a single transaction in such LIBOR Currency in
      such market at such time. If at least two such quotations are provided,
      LIBOR determined on such LIBOR Interest Determination Date will be the
      arithmetic mean of such quotations. If fewer than two quotations are
      provided, LIBOR determined on such LIBOR Interest Determination Date will
      be the arithmetic mean of the rates quoted at approximately 11:00 a.m., in
      the applicable Principal Financial Center, on such LIBOR Interest
      Determination Date for loans made in the LIBOR Currency to leading
      European banks having the Index Maturity designated in the attached
      Pricing Supplement commencing on the related Interest Reset Date and in a

                                       21
<PAGE>

      principal amount that is representative for a single transaction in the
      LIBOR Currency in such market at such time by three major banks in such
      Principal Financial Center selected by the Calculation Agent; provided,
      however, that if the banks so selected by the Calculation Agent are not
      quoting as mentioned in this sentence, LIBOR with respect to such LIBOR
      Interest Determination Date will be LIBOR in effect on such LIBOR Interest
      Determination Date.

            "Designated LIBOR Page" means the display on Money Telerate, or any
successor service, on the specified page or any page as may replace the
specified page on that service for the purpose of displaying the London
interbank rates of major banks for the LIBOR Currency, unless "LIBOR Reuters" is
designated in the attached Pricing Supplement, in which case the Designated
LIBOR Page shall be the display on the Reuters Monitor Money Rates Service, or
any successor service, on the specified page or any page as may replace the
specified page on that service for the purpose of displaying the London
interbank rates of major banks for the LIBOR Currency.

            Prime Rate Notes

            If this Security is a Prime Rate Note, it will bear interest at the
rate (calculated with reference to the Prime Rate and the Spread and/or Spread
Multiplier, if any) specified herein and in the attached Pricing Supplement.

            Unless otherwise specified in the attached Pricing Supplement,
"Prime Rate" means, with respect to any Prime Rate Interest Determination Date,
the rate on such date as published in H.15(519) opposite the caption "Bank prime
loan". If such rate is not published prior to 3:00 p.m., New York City time, on
the related Calculation Date, the Prime Rate will be the rate on the Prime Rate
Interest Determination Date published in H.15 Daily Update, or such other
recognized electronic source used for the purpose of displaying the applicable
rate, opposite the caption "Bank prime loan". If such rate is not published
prior to 3:00 p.m., New York City time, on the related Calculation Date, the
Prime Rate will be calculated by the Calculation Agent and will be the
arithmetic mean of the rates of interest publicly announced by each bank that
appears on the Reuters Screen USPRIME1 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 appear on
such Reuters Screen USPRIME1 Page by 3:00 p.m., New York City time, on the
related Calculation Date, the Prime Rate shall be 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 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 USPRIME1 Page" means the display on the Reuters
Monitor Money Rates Service (or any successor service) on the "USPRIME1" page or
such other page as may replace the USPRIME1 page on such service (or any
successor service) for the purpose of displaying prime rates or base lending
rates of major United States banks.

                                       22
<PAGE>

            Treasury Rate Notes

            If this Security is a Treasury Rate Note, it will bear interest at
the interest rate (calculated with reference to the Treasury Rate and the Spread
and/or Spread Multiplier, if any) specified herein and in the attached Pricing
Supplement.

            Unless otherwise specified in the attached Pricing Supplement, the
"Treasury Rate" means, with respect to any Treasury Rate Interest Determination
Date, the rate from the auction held on the Treasury Rate Interest Determination
Date (the "Auction") of Treasury bills having the Index Maturity designated in
the attached Pricing Supplement which appears under the caption "INVESTMENT
RATE" on the display on Moneyline Telerate, or any successor service, on page 56
or any other page as may replace page 56 on that service ("Moneyline Telerate
Page 56") or page 57 or any other page as may replace page 57 on that service
("Moneyline Telerate Page 57"). If such rate is not so published by 3:00 p.m.,
New York City time, on the Calculation Date pertaining to such Treasury Rate
Interest Determination Date, the Treasury Rate for such Treasury Rate Interest
Determination Date will be the rate calculated by the Calculation Agent as the
Bond Equivalent Yield (as defined below) of the rate from the Auction of
Treasury bills having the Index Maturity designated in the attached Pricing
Supplement, as published in H.15 Daily Update, or such other recognized
electronic source used for the purpose of displaying the applicable rate,
opposite the caption "U.S. government securities/Treasury bills/Auction high".
If such rate is not so published by 3:00 p.m., New York City time, on the
Calculation Date pertaining to such Treasury Rate Interest Determination Date,
the Treasury Rate for such Treasury Rate Interest Determination Date will be the
rate calculated by the Calculation Agent as the Bond Equivalent Yield of the
rate from the Auction of Treasury bills having the Index Maturity designated in
the attached Pricing Supplement as announced by the United States Department of
the Treasury. If such rate is not announced by the United States Department of
the Treasury by 3:00 p.m., New York City time, on the Calculation Date
pertaining to such Treasury Rate Interest Determination Date, or if the Auction
is not held, the Treasury Rate for such Treasury Rate Interest Determination
Date will be the rate calculated by the Calculation Agent as the Bond Equivalent
Yield of the rate on the Treasury Rate Interest Determination Date of Treasury
bills having the Index Maturity designated in the attached Pricing Supplement,
as published in H.15(519) opposite the caption "U.S. government
securities/Treasury bills(secondary market)". If such rate is not so published
by 3:00 p.m., New York City time, on the Calculation Date pertaining to such
Treasury Rate Interest Determination Date, the Treasury Rate for such Treasury
Rate Interest Determination Date will be the rate calculated by the Calculation
Agent as the Bond Equivalent Yield of the rate on the Treasury Rate Interest
Determination Date of Treasury bills having the Index Maturity designated in the
attached Pricing Supplement, as published in H.15 Daily Update, or such other
recognized electronic source used for the purpose of displaying the applicable
rate, opposite the caption "U.S. government securities/Treasury bills(secondary
market)". If such rate is not so published by 3:00 p.m., New York City time, on
the Calculation Date pertaining to such Treasury Rate Interest Determination
Date, the Treasury Rate for such Treasury Rate Interest Determination Date will
be the rate calculated by the Calculation Agent as the Bond Equivalent Yield of
the arithmetic mean of the secondary market bid rates for the issue of Treasury
bills with a remaining maturity closest to the Index Maturity designated in the
attached Pricing Supplement, as quoted as of approximately 3:30 p.m., New York
City time, on the Treasury Rate Interest Determination Date by three primary
United States government securities dealers in The City of New York selected by
the Calculation Agent; provided, however, that if the dealers selected as

                                       23
<PAGE>

aforesaid by the Calculation Agent are not quoting bid rates as mentioned above,
the Treasury Rate with respect to 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 calculated in accordance with
the following formula and expressed as a percentage:

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

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

            Original Issue Discount Notes

            If this Security is an Original Issue Discount Note, the attached
Pricing Supplement may specify that the Holder hereof will not receive periodic
payments of interest. Certain additional considerations relating to any Original
Issue Discount Notes may be specified in the attached Pricing Supplement. For
the purpose of determining whether Holders of the requisite principal amount of
Securities outstanding under the Indenture have made a demand or given a notice
or waiver or taken any other action, the outstanding principal amount of
Original Issue Discount Notes shall be deemed to be the amount of the principal
that would be due and payable upon declaration of acceleration of the Stated
Maturity thereof as of the date of such determination.

            "Original Issue Discount Note", means (i) a Security, including any
Zero Coupon Note, that has a stated redemption price at Maturity that exceeds
its Issue Price (as defined for U.S. Federal income tax purposes) by at least
0.25% of its stated redemption price at Maturity multiplied by the number of
full years from the Original Issue Date (as defined below) to the Stated
Maturity for such Security and (ii) any other Security designated by the Issuer
as needed used with original issue discount for United States Federal income tax
purposes.

            Indexed Notes

            If this Security is an Indexed Note, unless otherwise specified in
the attached Pricing Supplement, amounts due in respect of principal of (and
premium, if any) and interest (including additional amounts), if any, and in the
case of Original Issue Discount Notes, the Amortized Face Amount, may be
determined by reference to (a) a currency exchange rate or rates, (b) a
securities or commodities exchange index or indices, (c) the value of a
particular security or commodity or particular securities or commodities, (d)
any other index or indices or (e) formula or formulas. Indices to which
principal of (and premium, if any) and interest (including additional amounts),
if any, and in the case of Original Issue Discount Notes, the Amortized Face
Amount, may be indexed include (i) exchange rates between two or more of the
lawful currencies of Australia, Austria, Belgium, Brazil, Canada, Chile, the
Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, India,
Indonesia, Ireland, Italy, Japan, Korea, Luxembourg, Malaysia, Mexico, the
Netherlands, Norway, the Philippine Islands,

                                       24
<PAGE>

Poland, Portugal, Spain, Sweden, Switzerland, Thailand, Taiwan, Turkey, United
Kingdom and the United States (the "Listed Countries"); (ii) interest rate
indices for transactions denominated in the lawful currencies of the Listed
Countries (e.g., Brussels Interbank Offer Rate, Paris Interbank Offer Rate,
etc.); (iii) indices of prices of equity and debt securities of organizations
whose principal place of business is a Listed Country (e.g., S&P 500, Financial
Times 100, etc.); and (iv) prices of commodities including crude oil or oil
products, natural gas, precious metals (including gold, silver and platinum) and
base metals (including aluminum, lead, nickel, tin, zinc and copper). The
attached Pricing Supplement will specify the method by and terms on which the
amount of principal (whether at or prior to the Maturity thereof) and interest,
if any, and premium or the Amortized Face Amount, if any, will be determined and
other information relating to such Indexed Notes.

            Currency Indexed Notes

            The attached Pricing Supplement may specify that the principal
amount payable at Maturity and/or the interest rate of this Security will be
determined by a formula which makes reference to the rate of exchange between
one currency ("Currency I") and another currency ("Currency II"; together with
Currency I, the "Selected Currencies" both as specified in the attached Pricing
Supplement), neither of which need be the Specified Currency of such Security
(the "Currency Indexed Notes"). Unless otherwise specified in the attached
Pricing Supplement, Holders of Currency Indexed Notes will be entitled to
receive (1) an amount in respect of principal equal to the principal amount of
the Currency Indexed Notes plus (2) an adjustment, which may be negative or
positive, based on the change in the relationship between Selected Currencies;
in each case determined as described below under "Payment of Principal and
Interest". As specified in the attached Pricing Supplement, the exchange rate
designated as the base exchange rate (the "Base Exchange Rate") will be the
initial rate at which Currency I can be exchanged for Currency II and from which
the change in such exchange rate will be measured.

            Payment of Principal and Interest. Unless otherwise specified in the
attached Pricing Supplement, the payment of principal at Maturity and interest
on each Interest Payment Date (until the payment thereof is paid or made
available for payment) will be payable in the Specified Currency in amounts
calculated in the manner described below.

            Unless otherwise specified in the attached Pricing Supplement,
principal at Maturity, if indexed, will be payable in an amount equal to the
principal amount of the Currency Indexed Notes, plus or minus an amount
determined by reference to the difference between the Base Exchange Rate
specified in the attached Pricing Supplement and the rate at which Currency I
can be exchanged for Currency II on the second Business Day prior to the
Maturity (the "Currency Indexed Note Determination Date") of such Currency
Indexed Note, as determined by the determination agent specified in the attached
Pricing Supplement (the "Currency Indexed Note Determination Agent"). Unless
otherwise specified in the attached Pricing Supplement, the interest payable on
any Interest Payment Date, if indexed, will be payable in an amount equal to the
stated interest rate of the Currency Indexed Note, plus or minus a rate
adjustment determined by reference to the difference between the Base Exchange
Rate specified in the attached Pricing Supplement and the rate at which Currency
I can be exchanged for Currency II on the second Business Day prior to the
Interest Payment Date (the "Currency Indexed Interest Determination Date") of
such Currency Indexed Note, as determined by the Currency Indexed Determination
Agent, applied to the average principal amount outstanding of such Currency
Indexed Note for

                                       25
<PAGE>

the period being measured. For the purpose of this section, such rate of
exchange on the Currency Indexed Note Determination Date or the Currency Indexed
Interest Determination Date, as the case may be, will be the average of
quotations for settlement on the Maturity Date or the relevant Interest Payment
Date, as the case may be, obtained by the Currency Indexed Note Determination
Agent from three Reference Dealers in The City of New York at approximately
11:00 a.m., New York City time, on either the Currency Indexed Note
Determination Date or the relevant Currency Indexed Interest Determination Date,
as the case may be.

            The formulas to be used by the Currency Indexed Note Determination
Agent to determine the principal amount and/or the stated interest rate of a
Currency Indexed Note payable at Maturity or any Interest Payment Date will be
specified in the attached Pricing Supplement by reference to the appropriate
formula and unless otherwise specified in the attached Pricing Supplement will
be as follows:

            Principal

            A. If principal is to increase when the Spot Rate exceeds the Base
Exchange Rate, and if principal is to decrease when the Spot Rate in less than
the Base Exchange Rate, the formula to determine the principal amount of a
Currency Indexed Note payable at Maturity shall equal:

                                               (Spot Rate - Base Exchange Rate))
Principal Amount plus (Principal Amount x LF x ---------------------------------
                                                          Spot Rate

            To determine the "Spot Rate" for use in this formula, each Reference
Dealer's quotation will be the rate at which such Reference Dealer will sell
Currency I in the exchange for a single unit of Currency II.

            B. If principal is to increase when the Base Exchange Rate exceeds
the Spot Rate, and if principal is to decrease when the Base Exchange Rate is
less than the Spot Rate, the formula to determine the principal amount of a
Currency Indexed Note payable at Maturity shall equal:

                                               (Base Exchange Rate - Spot Rate))
Principal Amount plus (Principal Amount x LF x ---------------------------------
                                                          Spot Rate

            To determine the "Spot Rate" for use in this formula, each Reference
Dealer's quotation will be the rate at which such Reference Dealer will purchase
Currency I in exchange for a single unit of Currency II.

            Interest

            A. If interest is to increase when the Spot Rate exceeds the Base
Exchange Rate, and if interest is to decrease when the Spot Rate is less than
the Base Exchange Rate, the formula to determine the interest rate payable on
any Interest Payment Date on a Currency Indexed Note shall equal:

                               (Spot Rate - Base Exchange Rate)
Stated Interest Rate plus LF x ----------------------------------
                                       Spot Rate

                                       26
<PAGE>

            To determine the "Spot Rate" for use in this formula, each Reference
Dealer's quotation will be the rate at which such Reference Dealer will sell
Currency I in exchange for a single unit of Currency II.

            B. If interest is to increase when the Base Exchange Rate exceeds
the Spot Rate, and if interest is to decrease when the Base Exchange Rate is
less than the Spot Rate, the formula to determine the interest rate payable on
any Interest Payment Date on a Currency Indexed Note shall equal:

                               (Base Exchange Rate - Spot Rate)
Stated Interest Rate plus LF x --------------------------------
                                        Spot Rate

            To determine the "Spot Rate" for use in this formula, each Reference
Dealer's quotation will be the rate at which such Reference Dealer will purchase
currency I in exchange for a single unit of Currency II.

            In each of the above formulas "LF" will be the leverage factor, if
any, used in such formula and set forth in the attached Pricing Supplement.

            Dual Currency Notes

            The attached Pricing Supplement may specify that this Security is a
Security as to which the Issuer has a one time option, exercisable on any one of
the dates specified in the attached Pricing Supplement, of thereafter making all
payments of principal of (and premium, if any) and interest, if any (which
payments would otherwise be made in the Specified Currency of this Security) in
the optional currency ("Dual Currency Note") specified in the attached Pricing
Supplement. The attached Pricing Supplement will specify, among other things,
the original Specified Currency, the optional payment currency, the designated
exchange rate, the option election dates and the interest payment dates for such
Dual Currency Notes. The amounts payable and the method for calculating such
amounts (whether in respect of principal of (and premium, if any) or interest,
if any, and whether at maturity or otherwise) in respect of Dual Currency Notes
and any additional terms and conditions of any issue of Dual Currency Notes will
be specified in the attached Pricing Supplement.

            Amortizing Notes

            The attached Pricing Supplement may specify that this Security is a
Security for which payments combining principal and interest are made in
installments over the life of this Security ("Amortizing Notes"). Interest on
each Amortizing Note will be computed as specified in the attached Pricing
Supplement. Unless otherwise specified in the attached Pricing Supplement,
payments with respect to Amortizing Notes will be applied first to interest due
and payable thereon and then to the reduction of the unpaid principal amount
thereof. Further information concerning additional terms and conditions of any
issue of Amortizing Notes will be provided in the attached Pricing Supplement. A
table, formula or formulae setting forth repayment information with respect to
each Amortizing Note will be set forth in the attached

                                       27
<PAGE>

Pricing Supplement and will be available from the Paying Agent to the subsequent
Holders hereof.

            Interest Rate Reset

            If the Issuer has the option with respect to this Security to reset
the interest rate, in the case of a Fixed Rate Note, or to reset the Spread
and/or Spread Multiplier, in the case of a Floating Rate Note, the attached
Pricing Supplement will indicate such option, and, if so, (i) the date or dates
on which such interest rate or such Spread and/or Spread Multiplier, as the case
may be, may be reset (each an "Optional Reset Date") and (ii) the basis or
formula, if any, for such resetting.

            Unless otherwise specified in the attached Pricing Supplement, the
Issuer may exercise such option with respect to this Security by notifying the
Paying Agent with respect to this Security of such exercise at least 45 but not
more than 60 days prior to an Optional Reset Date for such Date for this
Security. Not later than 40 days prior to such Optional Reset Date, such Paying
Agent will mail to the Holder hereof a notice (the "Reset Notice"), first class,
postage prepaid, setting forth (i) the election of the Issuer to reset the
interest rate, in the case of a Fixed Rate Note, or the Spread and/or Spread
Multiplier, in the case of a Floating Rate Note, as the case may be (ii) such
new interest rate or such new Spread and/or Spread Multiplier, as the case may
be, and (iii) the provisions, if any, for redemption during the period from such
Optional Reset Date to the next Optional Reset Date or, if there is no such next
Optional Reset Date, to the Stated Maturity of this Security (each period an
"Optional Reset Interest Period"), including the date or dates on which or the
period or periods during which and the price or prices at which such redemption
may occur during such Optional Reset Interest Period.

            Notwithstanding the foregoing, unless otherwise specified in the
attached Pricing Supplement, not later than 20 days prior to an Optional Reset
Date for this Security, the Issuer may, at its option, revoke the interest rate,
in the case of a Fixed Rate Note, or the Spread and/or Spread Multiplier, in the
case of a Floating Rate Note, in either case provided for in the Reset Notice
and establish a higher interest rate, in the case of a Fixed Rate Note, or a
higher Spread and/or Spread Multiplier, in the case of a Floating Rate Note, for
the Subsequent Interest Period commencing on such Optional Reset Date by mailing
or causing such Paying Agent to mail notice of such higher interest rate or
higher Spread and/or Spread Multiplier, as the case may be, first class, postage
prepaid, to the Holder hereof. Such notice shall be irrevocable. All Securities
with respect to which the interest rate or Spread and/or Spread Multiplier is
reset on an Optional Reset Date will bear such higher interest rate, in the case
of a Fixed Rate Note, or higher Spread and/or Spread Multiplier, in the case of
a Floating Rate Note.

            Unless otherwise specified in the attached Pricing Supplement, if
the Issuer elects to reset the interest rate or the Spread and/or Spread
Multiplier of this Security, the Holder hereof will have the option to elect
repayment of this Security by the Issuer on any Optional Reset Date at a price
equal to the principal amount of this Security plus any accrued interest to such
Optional Reset Date. In order for this Security to be so repaid on an Optional
Reset Date on which the interest rate is reset, the Holder hereof must follow
the procedures set forth below under "Redemption at the Option of the Holder;
Repayment" for optional repayment, except that the period for delivery of this
Security or notification to the Paying Agent with respect to this Security shall
be at least 25 but not more than 35 days prior to such Optional Reset Date and

                                       28
<PAGE>

except that the Holder hereof who has tendered this Security for repayment
pursuant to a Reset Notice may, by written notice to such Paying Agent, revoke
any such tender for repayment until 5:00 p.m. New York City time on the tenth
day, whether or not a Business Day, prior to such Optional Reset Date.

            Extendible Notes

            The attached Pricing Supplement may specify that this Security is a
Security whose interest rate or interest rate formula may be extended on
specified dates and which may be subject to repayment at certain times at the
option of the Holder or to redemption at certain times at the option of the
Issuer ("Extendible Note"). The attached Pricing Supplement will indicate
whether the Issuer has the option to extend the maturity of this Security for
one or more periods up to but not beyond a date set forth in the attached
Pricing Supplement (the "Final Extended Maturity Date"). If the Issuer has such
option with respect to this Security, the procedures relating thereto will be as
specified in the attached Pricing Supplement.

            Unless otherwise specified in the attached Pricing Supplement, the
Extendible Notes will be repayable in whole or in part on the day immediately
following the end of the initial interest period, as specified in the attached
Pricing Supplement, and on the day immediately following the end of each
Extension Period, at the option of the Holder, at 100% of the principal amount
to be repaid, in each case plus accrued interest, if any, to the repayment date.
The attached Pricing Supplement will specify the procedures that must be
followed in order to effect such a repayment. Unless otherwise specified in the
attached Pricing Supplement, an "Extension Period" will be a period of one or
more whole calendar periods (e.g., weeks, months, or years) commencing on the
day following the last day of the initial interest period or any subsequent
Extension Period.

            Renewable Notes

            The attached Pricing Supplement will indicate whether this Security
(other than an Amortizing Note) will mature unless the term of all or any
portion of this Security is renewed in accordance with the procedures described
in the attached Pricing Supplement.

            Combination of Provisions

            If so specified in the attached Pricing Supplement, this Security
may be subject to all of the provisions, or any combination of the provisions,
described above under "Interest Rate Reset," "Extendible Notes" and "Renewable
Notes."

            Redemption At the Option of the Issuer

            This Security will be redeemable at the option of the Issuer prior
to the Stated Maturity, if any, only if an initial redemption date ("Initial
Redemption Date") is specified in the attached Pricing Supplement. If so
specified, and subject to any other term set forth in the attached Pricing
Supplement, this Security will be subject to redemption at the option of the
Issuer on any date on and after the Initial Redemption Date in whole or from
time to time in part in increments of $1,000, or any integral multiple of $1,000
in excess thereof, or the minimum denomination specified in the attached Pricing
Supplement (provided that any remaining principal amount thereof shall be at
least $1,000 or such minimum denomination), at the

                                       29
<PAGE>

applicable Redemption Price (as defined below) on notice given not more than 60
days if the Securities are being redeemed in whole, or 45 days if the Securities
are being redeemed in part, nor less than 30 days prior to the date of
redemption and in accordance with the provisions of the Indenture.

            Unless otherwise specified in the attached Pricing Supplement, the
"Redemption Price" shall initially be the Initial Redemption Percentage,
specified in the attached Pricing Supplement, of the principal amount of this
Security to be redeemed and shall decline at each anniversary of the Initial
Redemption Date by the Annual Redemption Percentage Reduction, if any, specified
in the attached Pricing Supplement, of the principal amount to be redeemed until
the Redemption Price is 100% of such principal amount, plus accrued and unpaid
interest, if any, to the date of redemption.

            Unless otherwise specified in the attached Pricing Supplement, this
Security will not be subject to any sinking fund.

            Redemption at the Option of the Holder; Repayment

            If so specified in the attached Pricing Supplement, this Security
will be repayable by the Issuer in whole or in part at the option of the Holder
hereof on a date or dates prior to the Maturity specified in the attached
Pricing Supplement (an "Optional Repayment Date") and unless otherwise specified
in the attached Pricing Supplement, at a price equal to 100% of the unpaid
principal amount thereof or the portion thereof, together with accrued interest,
if any, to, but excluding the date of repayment. Any repayment in part will be
in increments of $1,000, or any integral multiple of $1,000 in excess thereof,
or the minimum denomination specified in the attached Pricing Supplement
(provided that any remaining principal amount thereof shall be at least $1,000,
or such minimum denomination). If no Optional Repayment Date is specified with
respect to this Security, this Security will not be repayable at the option of
the Holder hereof prior to the Stated Maturity.

            For this Security to be repaid, unless provided otherwise in the
attached Pricing Supplement, the Paying Agent must receive at least 30 but not
more than 60 calendar days prior to the Optional Repayment Date, (i) this
Security, together with the form attached hereto entitled "Option to Elect
Repayment" duly completed, or (ii) a telegram, facsimile transmission or a
letter from a member of a national securities exchange or a member of the
National Association of Securities Dealers, Inc. (the "NASD") or a commercial
bank or trust company in the United States which must set forth the name of the
Holder, the principal amount, the principal amount to be repaid, the certificate
number or a description of the tenor and terms of the security, a statement that
the option to elect repayment is being exercised thereby and a guarantee that
the Security to be repaid, together with the duly completed form entitled
"Option to Elect Repayment" on the reverse side of the Security, will be
received by a Paying Agent not later than the fifth Business Day after the date
of such telegram, facsimile transmission or letter; provided, however, that such
telegram, facsimile transmission or letter from a member of a national
securities exchange or a member of the NASD, or a commercial bank or trust
company in the United States shall only be effective in such case if such
Security and form duly completed are received by a Paying Agent by such fifth
Business Day. Exercise of the repayment option by the Holder will be
irrevocable. The repayment option may be exercised by the Holder of the Security

                                       30
<PAGE>

for less than the entire principal amount of the Security but, in that event,
the principal amount of the Security remaining outstanding after repayment must
be an authorized denomination.

            While the Book-Entry Securities are represented by the Global
Security held by or on behalf of DTC, and registered in the name of DTC or DTC's
nominee, the option for repayment may be exercised by the applicable Participant
that has an account with DTC, on behalf of the beneficial owners of the Global
Security or Securities representing such Book-Entry Security, by delivering a
written notice substantially similar to the above mentioned form to a Paying
Agent (or such other address of which the respective Issuer shall from time to
time notify the Holders), not more than 60 nor less than 30 days prior to the
date of repayment. Notice of elections from Participants on behalf of beneficial
owner of the Global Security or Securities representing such Book-Entry Notes to
exercise their option to have such Book-Entry Notes repaid must be received by
the Paying Agent by 5:00 p.m., New York City time, on the last day for giving
such notice. In order to ensure that a notice is received by a Paying Agent by a
particular day, the beneficial owner of the Global Security or Securities
representing such Book-Entry Securities must so direct the applicable
Participant before such Participant's deadline for accepting instructions for
that day. Different firms may have different deadlines for accepting
instructions from their customers. Accordingly, beneficial owners of the Global
Security or Securities representing Book-Entry Securities should consult the
Participants through which they own their interest therein for the respective
deadlines for such Participants. All notices shall be executed by a duly
authorized officer of such Participant (with signatures guaranteed) and shall be
irrevocable. In addition, beneficial owners of the Global Security or Securities
representing Book-Entry Securities shall effect delivery at the time such
notices of election are given to DTC by causing the applicable Participant to
transfer such beneficial owner's interest in the Global Security or Securities
representing such Book-Entry Securities, on DTC's records, to the Trustee.

            In the event of redemption, repayment, repurchase or exchange of
this Security in part only, a new Security or Securities of this series and of
like tenor and for a principal amount equal to the unredeemed or unrepaid
portion will be delivered to the Holder upon the cancellation hereof.

            The United States Dollar amount to be received by a Holder of a
Security denominated in other than United States Dollars who elects to receive
payments in United States Dollars will be based on the highest indicated bid
quotation for the purchase of United States Dollars in exchange for the
Specified Currency obtained by the Currency Determination Agent at approximately
11:00 a.m., New York City time, on the second Business Day next preceding the
applicable payment date (the "Conversion Date") from the bank composite or
multicontributor pages of the Quoting Source for three (or two if three are not
available) major banks in The City of New York. The first three (or two) such
banks selected by the Currency Determination Agent which are offering quotes on
the Quoting Source will be used. If fewer than two such bid quotations are
available at 11:00 a.m., New York City time, on the second Business Day next
preceding the applicable payment date, such payment will be based on the Market
Exchange Rate as of the second Business Day next preceding the applicable
payment date. If the Market Exchange Rate for such date is not then available,
such payment will be made in the Specified Currency. As used herein, the
"Quoting Source" means Reuters Monitor Foreign Exchange Service, or if the
Currency Determination Agent determines that such service is not available,
Telerate Monitor Foreign Exchange Service, or if the Currency Determination
Agent determines that neither service is available, such comparable display or
other comparable manner of

                                       31
<PAGE>

obtaining quotations shall be agreed between the Issuer and the Currency
Determination Agent. All currency exchange costs associated with any payment in
United States Dollars on any such Security will be borne by the Holder by
deductions from such payment. Unless otherwise specified in the attached Pricing
Supplement, the currency determination agent (the "Currency Determination
Agent") with respect to the Securities will be JPMorgan Chase Bank, N.A.

            Except as otherwise provided herein or in the attached Pricing
Supplement, if payment on a Security is required to be made in a Specified
Currency other than United States Dollars or in any currency unit and such
currency or currency unit is unavailable due to the imposition of exchange
controls or other circumstances beyond the control of the Issuer (and, if
applicable, the Guarantor) or if such currency is no longer used by the
government of the country issuing such currency (unless replaced by the Euro) or
for the settlement of transactions by public institutions of or within the
international banking community, then all payments in respect of such Security
shall be made in United States Dollars until such currency or currency unit is
again available or so used. The amount of each payment of United States Dollars
shall be computed on the basis of the equivalent of the currency unit in United
States Dollars, which shall be determined by the Currency Determination Agent in
the manner set forth in the preceding paragraph (with respect to any currency
which is unavailable or no longer used, as described above) or on the following
basis (with respect to any currency unit which is unavailable). The component
currencies of the currency unit for this purpose (the "Component Currencies")
shall be the currency amounts that were components of the currency unit as of
the Conversion Date. The equivalent of the currency unit in United States
Dollars shall be calculated by aggregating the United States Dollar equivalents
of the Component Currencies. The United States Dollar equivalent of each of the
Component Currencies shall be determined by the Currency Determination Agent on
the basis of the Market Exchange Rate for each such Component Currency as of the
Conversion Date. Any payment made in such circumstances on the Securities will
not constitute an Event of Default or default as specified in Section 501 of the
Indenture.

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

            All determinations referred to above made by the Currency
Determination Agent shall be at its sole discretion and shall, in the absence of
manifest error, be conclusive for all purposes and binding on all Holders and
beneficial owner of Securities.

            If the principal of and any interest and premium, if any, on this
Security is payable in a Specified Currency other than United States Dollars and
the issuing country of such Specified Currency becomes a Participating Member
State (as defined below), then the Issuer may, solely at its option and without
the consent of the Holder of this Security or the need to amend the Indenture or
this Security, on any Interest Payment Date occurring after the date on

                                       32
<PAGE>

which such country has become a Participating Member State (such Interest
Payment Date, a "Redenomination Date"), redenominate this Security into Euro
(whether or not any other Securities are so redenonimated) upon the giving of
not less than 30 days' notice thereof to the Holder of this Security, which
notice shall set forth the manner in which such redenomination shall be
effected. If the Issuer elects to redenominate this Security, the election to
redenominate will have effect as follows:

      1. the Specified Currency will be deemed to be redenominated in such
amount of Euro as is equivalent to its denomination or the amount of interest so
specified in the Specified Currency at the Fixed Conversion Rate (as defined
below) adopted by the Council of the European Union for the Specified Currency,
rounded down to the nearest Euro 0.01;

      2. after the Redenomination Date, all payments in respect of this
Security, other than payments of interest in respect of periods commencing
before the Redenomination Date, will be made solely in Euro as though references
in this Security to the Specified Currency were to Euro. Payments will be made
in Euro by credit or transfer to a Euro-denominated account (or any other
account to which Euro may be credited or transferred) specified by the Holder,
or at the option of the Holder, by a Euro cheque;

      3. if the Security is a Fixed Rate Note and interest hereon for any period
ending on or after the Redenomination Date is required to be calculated for a
period of less than one year, it will be calculated on the basis of the
applicable fraction specified in the attached Pricing Supplement;

      4. if the Security is a Floating Rate Note, the attached Pricing
Supplement will specify any relevant changes to the provisions relating to
interest; and

      5. such other changes shall be made to the terms of this Security as the
Issuer may decide, after consultation with the Trustee, and as may be specified
in the notice, to conform them to conventions then applicable to debt securities
denominated in Euro or to enable this Security to be consolidated with other
Securities, whether or not originally denominated in the Specified Currency or
Euro. Any such other changes will not take effect until after they have been
notified to the Holder.

            The definition of Business Day that shall apply for payments on or
in respect hereof following any redenomination hereof and for all other purposes
under this Security and under the Indenture shall be (A) the business day
definition for fixed rate Euro-denominated debt obligations issued in the
Euromarkets and held in international clearing systems which are consistent with
existing or anticipated market practices as determined by the Issuer or (B) if
no such business day definition is so determined, the definition of business day
which applied to this Security before redenomination or (C) if the Issuer would
be unable to make payments on this Security on the date that payment is
expressed to be due if (B) above were to apply, such other business day
definition as is determined by the Issuer.

            "Fixed Conversion Rate" with respect to any Specified Currency means
the irrevocably fixed conversion rate between the Euro and such Specified
Currency adopted by the Council of the European Union according to Article 109
(4), first sentence, of the Treaty of Rome (as defined below).

                                       33
<PAGE>

            "Participating Member State" means a member state of the European
Union that adopts the Euro in accordance with the Treaty of Rome.

            "Treaty of Rome" means the Treaty of Rome of March 25, 1957, as
amended by the Single European Act of 1986 and the Maastricht Treaty,
establishing the European Community, as amended from time to time.

            "Maastricht Treaty" means the Treaty on European Union which was
signed in Maastricht, the Netherlands, on February 1, 1992 and came into force
on November 1, 1993.

            Except as provided herein with respect to the redenomination of this
Security into Euro, the occurrence or non-occurrence of an EMU Event (as defined
below) or the entry into force of any law, regulation, directive or order
requiring redenomination to be undertaken on terms different than those
described herein, will not have the effect of altering any term of, or
discharging or excusing performance under, the Indenture or this Security nor
give the Issuer, the Trustee or the Holder of this Security, the right
unilaterally to alter or terminate the Indenture or this Security or give rise
to any Event of Default or otherwise be the basis for any acceleration, early
redemption, rescission, notice, repudiation, adjustment or renegotiation of the
terms of the Indenture or this Security. To the extent legally permissible, the
occurrence or non-occurrence of an EMU Event will be considered to occur
automatically pursuant to the terms of this Security. For purposes hereof, "EMU
Event" means any event associated with the European Monetary Union as
contemplated by the Treaty of Rome in the European Community, including, without
limitation, each (and any combination) of (i) the fixing of exchange rates
between the currency of a Participating Member State and the Euro or between the
currencies of Participating Member States; (ii) the introduction of the Euro as
lawful currency in a Participating Member State; (iii) the withdrawal from legal
tender of any currency that, before the introduction of the Euro, was the lawful
currency in any of the Participating Member States; or (iv) the disappearance or
replacement of a relevant rate option or other price source for the national
currency of any Participating Member States, or the failure of the agreed price
or rate sponsor or screen provider (or any successor thereto) to publish or
display a relevant rate, index, price, page or screen.

            In the event that the issuing country of the Specified Currency, or,
in the case of the Euro, the European Union, officially redenominates the
Specified Currency into, or replaces it with, a currency other than the Euro,
then the Issuer's obligations with respect to payments on this Security shall be
deemed, immediately following such redenomination, to provide for payment of
that amount of redenominated currency representing the amount of the Issuer's
obligations immediately prior to such redenomination (by application of the
fixed conversion rate adopted for this purpose by such country, or the European
Union, as the case may be). Except as set forth above, in no event shall any
adjustment be made to any amount payable with respect to this Security as a
result of any change in the value of the Specified Currency relative to any
other currency due solely to fluctuations in exchange rates.

            "Market Exchange Rate" means, unless otherwise specified in the
attached Pricing Supplement, (1) for any conversion involving a currency unit on
the one hand and United States Dollars or any Foreign Currency on the other, the
exchange rate between the relevant currency unit and United States Dollars or
such Foreign Currency calculated by the method specified pursuant to Section 301
of the Indenture for the Securities of the relevant series and

                                       34
<PAGE>

(2) for any conversion of United States Dollars into any Foreign Currency or for
any conversion of one Foreign Currency into United States Dollars or another
Foreign Currency, the spot rate at noon local time in the relevant market at
which, in accordance with normal banking procedures, the United States Dollars
or Foreign Currency into which conversion in being made could be purchased with
the United States Dollars or Foreign Currency from which conversion is being
made from major banks located in either New York City or any other principal
market for United States Dollars or such purchased Foreign Currency, in each
case determined by the Issuer or the Currency Determination Agent. In the event
of the unavailability of any of the exchange rates provided for in the foregoing
clauses (1) and (2), the Issuer or the Currency Determination Agent shall use,
in its sole discretion and without liability on its part, such quotation of the
Federal Reserve Bank of New York as of the most recent available date, or
quotations from one or more major banks in New York City, New York, or other
principal market for such currency or currency unit in question, or such other
quotations as the Issuer or the Currency Determination Agent shall deem
appropriate. Unless otherwise specified by the Issuer or the Currency
Determination Agent, if there is more than one market for dealing in any
currency or currency unit by reason of foreign exchange regulations or
otherwise, the market to be used in respect of such currency or currency unit
shall be that upon which a nonresident issuer of securities designated in such
currency or currency unit would purchase such currency or currency unit in order
to make payments in respect of such securities. For purposes of this definition,
a "nonresident issuer" shall mean an issuer that is not a resident of the
country or countries that issue such currency or whose currencies are included
in much currency unit.

            Unless otherwise specified in the attached Pricing Supplement,
payments of principal of (and premium, if any) and interest, if any, with
respect to any Security to be made in a Specified Currency other than United
States Dollars will be made by wire transfer to such account with a bank located
in the Principal Financial Center of the country issuing the Specified Currency
(or, with respect to Securities denominated in Euro, Brussels) or such other
jurisdiction acceptable to the Issuer of such Security and the Paying Agent as
shall have been designated at least 15 days prior to the Interest Payment Date
or Maturity, as the case may be, by the Holder on the relevant Regular Record
Date or at Maturity, provided that, in the case of payment of principal of, and
premium, if any, and interest, if any, due at Maturity, the Security is
presented to the Paying Agent in time for such Paying Agent to make such
payments in such funds in accordance with its normal procedures. Such
designation shall be made by filing the appropriate information with the Paying
Agent at its Principal office, and, unless revoked, any such designation made
with respect to any Security by a Holder will remain in effect with respect to
any further payments with respect to such Security payable to such Holder. If a
payment with respect to any such Security cannot be made by wire transfer
because the required designation has not been received by the Paying Agent on or
before the requisite date or for any other reason, a notice will be mailed to
the Holder at its registered address requesting a designation pursuant to which
such wire transfer can be made and upon the Paying Agent's receipt of such a
designation, such payment will be made within 15 days of such receipt. The
Issuer will pay any administrative costs imposed by banks in connection with
making payments by wire transfer, but any tax, assessment or governmental charge
imposed upon payments will be borne by the Holder.

            The Securities are the direct, unconditional, unsubordinated and
(subject to certain provisions set forth in the Indenture) unsecured obligations
of the Issuer and the Guarantees are the direct, unconditional, unsubordinated
and (subject to certain provisions set forth in the

                                       35
<PAGE>

Indenture) unsecured obligations of the Guarantor, in each case without any
preference among themselves and rank at least equally with deposits and all
other unsecured and unsubordinated obligations of the Issuer or the Guarantor,
as the case may be, subject, in the event of insolvency, to laws of general
applicability relating to or affecting creditors' rights.

            The Guarantor will pay to the holders of the Securities of this
series such additional amounts as may be necessary in order that every net
payment of the principal of (and premium, if any, on) and interest, if any, on
any Security of this series after deduction or other withholding for or on
account of any present or future tax, assessment, duty or other governmental
charge of any nature whatsoever imposed, levied or collected by or on behalf of
the jurisdiction in which the Guarantor is organized or any political
subdivision or taxing authority thereof or therein having power to tax will not
be less than the amount provided for in this Security to be then due and
payable; provided, however, that the foregoing obligation to pay additional
amounts will not apply on account of any tax, assessment, duty or other
governmental charge which is payable (a) otherwise than by deduction or
withholding from payments of principal of (or premium, if any, on) or interest,
if any, on this Security; or (b) by reason of the holder having, or having had,
some personal or business connection with the jurisdiction in which the
Guarantor is organized and not merely by reason of the fact that payments are,
or for the purposes of taxation are deemed to be, from sources in, or secured
in, such jurisdiction; or (c) by reason of a change in law or official practice
of any relevant taxing authority that becomes effective more than fifteen days
after the Relevant Date (as defined below) for payment of principal (or premium,
if any), or interest, if any, in respect of this Security; or (d) by the Paying
Agent from a payment if the payment could have been made by another paying agent
without such deduction or withholding; or (e) by reason of the holder's present
or former status as a personal holding company, foreign personal holding
company, a passive foreign investment company, or a controlled foreign
corporation for United States tax purposes or a corporation which accumulates
earnings to avoid United States federal income tax, and not merely by reason of
the fact that payments in respect of this Security or the Guarantee are, or for
purposes of taxation are deemed to be, derived from sources in, or are secured
in, the United States or the Federal Republic of Germany; or (f) by reason of
such holder's past or present status as the actual or constructive owner of ten
percent or more of the total combined voting power of all classes of stock of
the Issuer entitled to vote; or (g) by reason of any estate, excise,
inheritance, gift, sales, transfer, wealth or personal property tax or any
similar assessment or governmental charge; or (h) as a result of the failure of
the holder to comply with certification, identification, or other similar
information reporting requirements or make a declaration of non-residence or
other similar claim for exemption to the relevant tax authority; or (i) where
such withholding or deduction is imposed on a payment to an individual and is
required to be made pursuant to any European Union directive on the taxation of
savings, or any law implementing or complying with, or introduced in order to
conform to, such directive; or (j) owing to any combination of clauses (a)
through (i) above.

            No additional amounts will be paid as provided above with respect to
any payment of principal of (or premium, if any, on) or interest, if any, on
this Security to any holder who is a fiduciary or partnership or other than the
sole beneficial owner of any such payment to the extent that a beneficiary or
settlor with respect to such fiduciary, a member of such a partnership or the
beneficial owner of such payment would not have been entitled to the additional
amounts had such beneficiary, settlor, member or beneficial owner been the
holder of this Security.

                                       36
<PAGE>

            "Relevant Date" means the date on which the payment of principal of
(or premium, if any, on) or interest, if any, on this security first becomes due
and payable but, if the full amount of the monies payable on such date has not
been received by the relevant Paying Agent or as it shall have directed on or
prior to such date, the "Relevant Date" means the date on which such monies
shall have been so received.

            If an Event of Default with respect to Securities of this series
shall occur and be continuing, the principal of all of the Securities of this
series may be declared due and payable in the manner and with the effect
provided in the Indenture. The Indenture provides that in certain circumstances
such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding
Securities. If a default with respect to Securities of this series as specified
in Section 501 of the Indenture occurs and is continuing, the Trustee may pursue
certain remedies as set forth in the Indenture. The Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities of this
series may waive any past default under the Indenture and its consequences,
except a default in the payment of principal of (or premium, if any, on) or
interest, if any, on any of the Securities or with respect to a covenant or
provision which under the Indenture cannot be modified or amended without the
consent of the Holder of each Outstanding Security. Any such consent or waiver
by the Holder of this Security (unless revoked as provided in the Indenture)
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 exchange therefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Security or such other Securities.

            The Indenture contains provisions permitting the Issuer and the
Trustee (i) without the consent of the Holders of any Securities issued under
the Indenture to execute supplemental indentures for certain enumerated
purposes, such as to cure any ambiguity or inconsistency or to make any change
that does not have a materially adverse effect on the rights of any Holder of
such Securities, and (ii) with the consent of the Holders of more than 50% in
aggregate principal amount of the Outstanding Securities of each series of
Securities affected thereby, to execute supplemental indentures for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of modifying in any manner the rights of Holders
of Securities under the Indenture; provided, that, with respect to certain
enumerated provisions, no such supplemental indenture may be entered into
without the consent of the Holder of each Outstanding Security affected thereby.
The Indenture also permits the Holders of not less than a majority in aggregate
principal amount of the Outstanding Securities of each series to be affected on
behalf of the Holders of all Securities of such series, to waive compliance by
the Issuer and the Guarantor with certain restrictive provisions of the
Indenture. 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 exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Security or such other Securities.

            No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the Issuer,
which is absolute and unconditional, to pay the principal of (and premium, if
any, on) and interest, if any, on this Security (including any additional
amounts payable in accordance with the term of this Security and the Indenture)
at the times, places and rate, and in the currency or currency unit, specified
herein and in the

                                       37
<PAGE>

attached Pricing Supplement. However, the Indenture limits the Holder's right to
enforce the Indenture and this Security.

            This Global Security or portion hereof may not be exchanged for
definitive Securities of this series, except for definitive Securities in the
limited circumstances provided for in the Indenture. As provided in the
Indenture and subject to certain limitations set forth therein and on the face
hereof, the transfer of this Security is registrable in the Security Register,
upon surrender of this Security for registration of transfer at the office or
agency of the Issuer in any place where the principal of (and premium, if any,
on) and interest, if any, on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Issuer and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series of like tenor, to Authorized Denominations (as defined below) and
for the same aggregate principal amount, and with the Guarantee executed by the
Guarantor endorsed thereon, will be issued to the designated transferee or
transferees.

            As provided in the Indenture and subject to certain limitations set
forth therein and on the face hereof, Securities of this series are exchangeable
for a like aggregate principal amount of Securities of this series of like tenor
of a different Authorized Denomination, and with the Guarantee executed by the
Guarantor endorsed thereon, as required by the Holder surrendering the same.

            Unless otherwise specified in the attached Pricing Supplement,
Securities will be issuable in United States Dollars in denominations of $1,000
and integral multiples of $1,000 in excess thereof (in each case, an "Authorized
Denomination").

            Except as otherwise provided for in the Indenture, no service charge
shall be made for any such registration of transfer or exchange, but the Issuer
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 Issuer, the Guarantor, the Trustee and the Paying Agent and any
agent of the Issuer, the Guarantor, the Trustee or the Paying Agent may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security is overdue, and none of the Issuer, the
Guarantor, the Trustee, the Paying Agent or any such agent shall be affected by
notice to the contrary.

            The Indenture, the Securities and the Guarantees shall be governed
by and construed in accordance with the laws of the State of New York.

            Terms used in this Security and not defined herein shall have the
meaning assigned to them in the attached Pricing Supplement or, if not defined
in the attached Pricing Supplement, in the Indenture.

                                       38
<PAGE>

                                    GUARANTEE

            For value received, DaimlerChrysler AG, a stock corporation
organized in the Federal Republic of Germany (herein called the "Guarantor",
which term includes any successor Person under the Indenture referred to in the
Security upon which this Guarantee is endorsed), hereby irrevocably and
unconditionally guarantees to the Holder of the Security upon which this
Guarantee is endorsed, and to the Trustee on behalf of each such Holder, the due
and punctual payment of the principal of (and premium, if any, on) and interest,
if any, on such Security (including any additional amounts payable in accordance
with the terms of such Security and the Indenture) and the due and punctual
payment of any sinking fund payments provided for pursuant to the terms of any
such Security when and as the same shall become due and payable, whether at the
Stated Maturity, if any, by declaration of acceleration, call for redemption,
request for redemption, repayment at the option of the Holder or otherwise, in
accordance with the terms of said Security and of the Indenture. In case of the
failure of the Issuer punctually to make any such payment of principal (or
premium, if any) or interest, if any, (including any additional amounts as
referred to above) or sinking fund payment, the Guarantor hereby agrees to cause
any such payment to be made punctually when and as the same shall become due and
payable, whether at the Stated Maturity, if any, by declaration of acceleration,
call for redemption, request for redemption, repayment at the option of the
Holder or otherwise, and as if such payment were made by the Issuer.

            The Guarantor will pay to the holder of this Security such
additional amounts as may be necessary in order that every net payment of the
principal of (and premium, if any, on) and interest, if any, on this Security
after deduction or other withholding for or on account of any present or future
tax, assessment, duty or other governmental charge of any nature whatsoever
imposed, levied or collected by or on behalf of the jurisdiction in which the
Guarantor is organized or any political subdivision or taxing authority thereof
or therein having power to tax, will not be less than the amount provided for in
this Security to be then due and payable; provided, however, that the foregoing
obligation to pay additional amounts will not apply on account of any tax,
assessment, duty or other governmental charge which is payable (a) otherwise
than by deduction or withholding from payments of principal of (or premium, if
any, on) or interest, if any, on this Security; or (b) by reason of the holder
having, or having had, some personal or business connection with the
jurisdiction in which the Guarantor is organized and not merely by reason of the
fact that payments are, or for the purposes of taxation are deemed to be, from
sources in, or secured in, the jurisdiction in which the Guarantor is organized;
or (c) by reason of a change in law or official practice of any relevant taxing
authority that becomes effective more than fifteen (15) days after the Relevant
Date (as defined above) for payment of principal (or premium, if any), or
interest, if any, in respect of this Security; or (d) by the Paying Agent from a
payment if the payment could have been made by another paying agent without such
deduction or withholding; or (e) by reason of the holder's present or former
status as a personal holding company, foreign personal holding company, a
passive foreign investment company, or a controlled foreign corporation for
United States tax purposes or a corporation which accumulates earnings to avoid
United States federal income tax, and not merely by reason of the fact that
payments in respect of this Security or the Guarantee are, or for purposes of
taxation are deemed to be, derived from sources in, or are secured in, the
United States or the Federal Republic of Germany; or (f) by reason of such
holder's past or present status as the actual or constructive owner of ten
percent or more of the total combined voting power of all \

                                       39
<PAGE>

classes of stock of the Issuer entitled to vote; or (g) by reason of any estate,
excise, inheritance, gift, sales, transfer, wealth or personal property tax or
any similar assessment or governmental charge; or (h) as a result of the failure
of the holder to comply with certification, identification, or other similar
information reporting requirements or make a declaration of non-residence or
other similar claim for exemption to the relevant tax authority; or (i) where
such withholding or deduction is imposed on a payment to an individual and is
required to be made pursuant to any European Union directive on the taxation of
savings, or any law implementing or complying with, or introduced in order to
conform to, such directive; or (j) owing to any combination of clauses (a)
through (i) above.

            The Guarantor hereby agrees that its obligations hereunder shall be
as if it were principal debtor and not merely surety, and shall be absolute and
unconditional, irrespective of the validity, regularity or enforceability of
said Security or the Indenture, the absence of any action to enforce the same,
any waiver or consent by the Holder of said Security or by the Trustee or the
Paying Agent with respect to any provisions thereof or of the Indenture, the
recovery of any judgment against the Issuer or any action to enforce the same or
any other circumstances which might otherwise constitute a legal or equitable
discharge or defense of a guarantor. The Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Issuer, any right to require a proceeding first
against the Issuer, protest or notice with respect to said Security or the
indebtedness evidenced thereby and all demands whatsoever, and covenants that
this Guarantee will not be discharged except by complete performance of its
obligations contained in the Indenture, said Security and this Guarantee.

            The Holder of the Security on which this Guarantee is endorsed is
entitled to the further benefits relating thereto set forth in the Security and
the Indenture. No reference herein to the Indenture and no provision of this
Guarantee, said Security or the Indenture shall alter or impair the guarantee of
the Guarantor, which is absolute and unconditional, of the due and punctual
payment of the principal of (and premium, if any, on) and interest, if any
(including any additional amounts referred to above), or any sinking fund
payment in respect of, the Security upon which this Guarantee is endorsed.

            The Indenture, the Securities and the Guarantees shall be governed
by and construed in accordance with the laws of the State of New York.

            REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS GUARANTEE
SET FORTH IN SAID SECURITY AND IN THE INDENTURE, WHICH FURTHER PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

            Terms used in this Guarantee and not defined herein shall have the
meanings assigned to them in the attached Pricing Supplement or, if not defined
in the attached Pricing Supplement, in the Indenture.

            This Guarantee shall not be valid or obligatory for any purpose
until the certificate of authentication on the within Security has been executed
by the Paying Agent, directly or through an Authenticating Agent, by manual or
facsimile signature of an authorized signatory.

                                       40
<PAGE>

            IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be
duly executed.

Dated:

                                                  DAIMLERCHRYSLER AG

                                                  By:__________________________
                                                     Name:
                                                     Title:

                                                  By:__________________________
                                                     Name:
                                                     Title:

                                       41
<PAGE>

                             CERTIFICATE OF TRANSFER

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 TYPE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

_______________________________________________________________________________
the within Security and all rights thereunder, hereby irrevocably constituting
and appointing
_______________________________________________________________________________
attorney to transfer said Security on the books of the Issuer, with full power
of substitution in the premises.

Dated:__________________________                  ______________________________
                                                  NOTICE: The signature to this
                                                  assignment must correspond
                                                  with the name as written upon
                                                  the face of the within
                                                  instrument in every
                                                  particular, without alteration
                                                  or enlargement or any change
                                                  whatever.

<PAGE>

                            OPTION TO ELECT REPAYMENT

            TO BE COMPLETED ONLY IF THIS SECURITY IS REPAYABLE AT THE
             OPTION OF THE HOLDER AND THE HOLDER ELECTS TO EXERCISE
                                   SUCH RIGHTS

            The undersigned hereby irrevocably requests and instructs the Issuer
to repay the within Security (or portion thereof specified below) pursuant to
its terms at a price equal to 100% of the principal amount thereof or, if the
within Security is an Original Issue Discount Security, the applicable Repayment
Price specified in the attached Pricing Supplement (expressed as a percentage of
the principal amount of the Security) together in the case of any such repayment
with interest to the Repayment Date, to the undersigned at ______________.

            For the within Security to be repaid at the option of the Holder,
the Paying Agent must receive at its Principal Office, at least 30 days but not
more than 60 days prior to the Repayment Date on which the within Security is to
be repaid, (i) the within Security with this "Option to Elect Repayment" form
duly completed or (ii) a telegram, telex, facsimile transmission or a letter
from a member of a national securities exchange, or the National Association of
Securities Dealers, Inc. or a commercial bank or trust company in the United
States setting forth the name of the Holder of the Security, the principal
amount of the Security, the principal amount of the Security to be repaid, the
certificate number or a description of the tenor and terms of the Security, a
statement that the option to elect repayment is being exercised thereby and a
guarantee that the Security, together with the duly completed form entitled
"Option to Elect Repayment" on the reverse of the Security, will be received by
the Paying Agent not later than the fifth Business Day after the date of such
telegram, telex, facsimile transmission or letter, provided, however, that such
telegram, telex, facsimile transmission or letter shall only be effective if the
within Security with such form duly completed are received by the Paying Agent
by such fifth Business Day.

            If less than the entire principal amount of the within Security is
to be repaid, specify the portion thereof which the Holder elects to have
repaid: _____________________; and specify the denomination or denominations
(which shall be an Authorized Denomination) of the Security or Securities to be
issued to the Holder for the portion of the within Security not being repaid (in
the absence of any specification, one such Security will be issued for the
portion not being repaid):_____________________________.

Dated:___________________                         _____________________________
                                                  NOTICE: The signature to this
                                                  Option to Elect Repayment must
                                                  correspond with the name as
                                                  written upon the face of the
                                                  within instrument in every
                                                  particular, without alteration
                                                  or enlargement or any change
                                                  whatever.

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