Document:

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                        CENEX HARVEST STATES COOPERATIVES

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

                             NOTE PURCHASE AGREEMENT

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                          DATED AS OF OCTOBER 18, 2002

          $115,000,000 4.96% SERIES D SENIOR NOTES DUE OCTOBER 18, 2012
          $60,000,000 5.60% SERIES E SENIOR NOTES DUE OCTOBER 18, 2017

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                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

1.       AUTHORIZATION OF NOTES...............................................1

2.       SALE AND PURCHASE OF NOTES...........................................1

3.       CLOSING. 2

4.       CONDITIONS TO CLOSING................................................2

         4.1.     Representations and Warranties..............................2
         4.2.     Performance; No Default.....................................2
         4.3.     Compliance Certificates.....................................3
         4.4.     Opinions of Counsel.........................................3
         4.5.     Purchase Permitted By Applicable Law, etc...................3
         4.6.     Sale of Other Notes.........................................3
         4.7.     Payment of Special Counsel Fees.............................4
         4.8.     Private Placement Number....................................4
         4.9.     Changes in Corporate Structure..............................4
         4.10.    Offeree Letter..............................................4
         4.11.    Proceedings and Documents...................................4

5.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY........................4

         5.1.     Organization; Power and Authority...........................4
         5.2.     Authorization, etc..........................................5
         5.3.     Disclosure..................................................5
         5.4.     Organization and Ownership of Shares of
                    Subsidiaries; Affiliates..................................5
         5.5.     Financial Statements........................................6
         5.6.     Compliance with Laws, Other Instruments, etc................6
         5.7.     Governmental Authorizations, etc............................7
         5.8.     Litigation; Observance of Agreements, Statutes
                    and Orders................................................7
         5.9.     Taxes.......................................................7
         5.10.    Title to Property; Leases...................................8
         5.11.    Permits and Other Operating  Rights.........................8
         5.12.    Intellectual Property.......................................8
         5.13.    Compliance with ERISA.......................................9
         5.14.    Private Offering by the Company............................10
         5.15.    Use of Proceeds; Margin Regulations........................10
         5.16.    Existing Debt; Future Liens................................10
         5.17.    Foreign Assets Control Regulations, etc....................11
         5.18.    Status under Certain Statutes..............................11
         5.19.    Environmental Matters......................................11
         5.20.    Solvency...................................................12
         5.21.    Hostile Tender Offers......................................12
         5.22.    Ranking of Notes...........................................12

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6.       REPRESENTATIONS OF THE PURCHASER....................................12

         6.1.     Purchase for Investment....................................12
         6.2.     Source of Funds............................................13

7.       INFORMATION AS TO COMPANY...........................................14

         7.1.     Financial and Business Information.........................14
         7.2.     Officer's Certificate......................................17
         7.3.     Inspection.................................................17

8.       INTEREST; PAYMENT OF THE NOTES......................................18

         8.1.     Interest Payments..........................................18
         8.2.     Required Principal Payments................................18
         8.3.     Optional Prepayments with Make-Whole Amount................20
         8.4.     Allocation of Partial Prepayments..........................20
         8.5.     Maturity; Surrender, etc...................................21
         8.6.     Purchase of Notes..........................................21
         8.7.     Make-Whole Amount..........................................21

9.       AFFIRMATIVE COVENANTS...............................................22

         9.1.     Compliance with Law........................................22
         9.2.     Insurance..................................................23
         9.3.     Maintenance of Properties..................................23
         9.4.     Payment of Taxes and Claims................................23
         9.5.     Corporate Existence, etc...................................24
         9.6.     Pari Passu.................................................24

10.      NEGATIVE COVENANTS..................................................24

         10.1.    Transactions with Affiliates...............................24
         10.2.    Merger, Consolidation, etc.................................24
         10.3.    Funded Debt to Consolidated Cash Flows.....................25
         10.4.    Adjusted Consolidated Funded Debt to Consolidated
                    Members' and Patrons' Equity.............................25
         10.5.    Priority Debt..............................................25
         10.6.    Liens......................................................26
         10.7.    Sale of Assets.............................................28
         10.8.    Line of Business...........................................32
         10.9.    Subsidiary Distribution Restrictions.......................32
         10.10.   Subsidiary Preferred Stock.................................32
         10.11.   Issuance of Stock by Subsidiaries..........................32

11.      EVENTS OF DEFAULT...................................................32

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12.      REMEDIES ON DEFAULT, ETC............................................34

         12.1.    Acceleration...............................................34
         12.2.    Other Remedies.............................................35
         12.3.    Rescission.................................................35
         12.4.    No Waivers or Election of Remedies, Expenses, etc..........36

13.      REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.......................36

         13.1.    Registration of Notes......................................36
         13.2.    Transfer and Exchange of Notes.............................36
         13.3.    Replacement of Notes.......................................37

14.      PAYMENTS ON NOTES...................................................37

15.      EXPENSES, ETC.......................................................37

         15.1.    Transaction Expenses.......................................37
         15.2.    Survival...................................................38

16.      SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT........38

17.      AMENDMENT AND WAIVER................................................38

         17.1.    Requirements...............................................38
         17.2.    Solicitation of Holders of Notes...........................39
         17.3.    Binding Effect, etc........................................39
         17.4.    Notes held by Company, etc.................................39

18.      NOTICES. 39

19.      REPRODUCTION OF DOCUMENTS...........................................40

20.      CONFIDENTIAL INFORMATION............................................40

21.      SUBSTITUTION OF PURCHASER...........................................41

22.      MISCELLANEOUS.......................................................42

         22.1.    Successors and Assigns.....................................42
         22.2.    Payments Due on Non-Business Days..........................42
         22.3.    Severability...............................................42
         22.4.    Construction...............................................42
         22.5.    Counterparts...............................................42
         22.6.    Governing Law..............................................42

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                             Schedules and Exhibits
                             ----------------------

Schedule A           --       Information Relating To Purchasers
Schedule B           --       Defined Terms

Schedule 4.9         --       Changes in Corporate Structure
Schedule 5.3         --       Disclosure Materials
Schedule 5.4         --       Subsidiaries of the Company and Ownership of
                                Subsidiary Stock
Schedule 5.5         --       Financial Statements
Schedule 5.6         --       Restrictions on Debt
Schedule 5.12        --       Intellectual Property
Schedule 5.15        --       Use of Proceeds
Schedule 5.16        --       Existing Debt

Exhibit 1A           --       Form of 4.96% Series D Senior Notes due
                                October 18, 2012
Exhibit 1B           --       Form of 5.60% Series E Senior Notes due
                                October 18, 2017

Exhibit 3            --       Form of Pay Proceeds Letter

Exhibit 4.4(a)       --       Form of Opinion of General Counsel for the Company
Exhibit 4.4(b)       --       Form of Opinion of Special Counsel for the
                                Purchasers

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                        CENEX HARVEST STATES COOPERATIVES
                                5500 CENEX DRIVE
                          INVER GROVE HEIGHTS, MN 55077

          $115,000,000 4.96% Series D Senior Notes due October 18, 2012
          $60,000,000 5.60% Series E Senior Notes due October 18, 2017

                                                    Dated as of October 18, 2002

Separately addressed to each of the Purchasers
  listed in the attached Schedule A

Ladies and Gentlemen:

         Cenex Harvest States Cooperatives, a nonstock agricultural cooperative
corporation organized under the laws of the State of Minnesota (the "COMPANY"),
agrees with you as follows:

1.       AUTHORIZATION OF NOTES.

         The Company will authorize the issue and sale of (a) $115,000,000
aggregate principal amount of its 4.96% Series D Senior Notes due October 18,
2012 (the "SERIES D NOTES", such term to include any such notes issued in
substitution therefor pursuant to Section 13 of this Agreement or the Other
Agreements (as hereinafter defined)) and (b) $60,000,000 aggregate principal
amount of its 5.60% Series E Senior Notes due October 18, 2017 (the "SERIES E
NOTES", such term to include any such notes issued in substitution therefor
pursuant to Section 13 of this Agreement or the Other Agreements (as hereinafter
defined)). The Series D Notes shall be substantially in the form set out in
Exhibit 1A and the Series E Notes shall be substantially in the form set out in
Exhibit 1B, in each case with such changes therefrom, if any, as may be approved
by you and the Company. The term "NOTES" as used herein, shall include each of
the Series D Notes and the Series E Notes (each a "SERIES") and any promissory
note delivered in substitution or exchange for any Notes pursuant to Section 13,
and the term "NOTE" shall refer to any one of such Notes. Certain capitalized
terms used in this Agreement are defined in Schedule B hereto; references to a
"Schedule" or an "Exhibit" are, unless otherwise specified, to a Schedule or an
Exhibit attached to this Agreement; and references to a "Section" are, unless
otherwise specified, references to a Section of this Agreement.

2.       SALE AND PURCHASE OF NOTES.

         Subject to the terms and conditions of this Agreement, the Company will
issue and sell to you and you will purchase from the Company, at the Closing
provided for in Section 3, Notes in the principal amount and the Series
specified opposite your name in Schedule A at the purchase price of 100% of the
principal amount thereof. Contemporaneously with entering into this Agreement,
the Company is entering into separate Note Purchase Agreements (the "OTHER
AGREEMENTS") identical with this Agreement with each of the other purchasers
named in Schedule A (the "OTHER PURCHASERS"), providing for the sale at such
Closing to each of the Other Purchasers of Notes in the principal amounts and
the Series specified below its name in Schedule A. Your obligation hereunder and
the obligations of the Other Purchasers under the Other

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Agreements are several and not joint obligations and you shall have no
obligation under any Other Agreement and no liability to any Person for the
performance or non-performance by any Other Purchaser thereunder. This Agreement
and the other Agreements shall constitute one single agreement for purposes of
New York General Obligations Law section 5-501.

3.       CLOSING.

         The sale and purchase of the Notes to be purchased by you and the Other
Purchasers shall occur at the offices of Bingham McCutchen LLP, One State
Street, Hartford, Connecticut 06103, at 10:00 a.m., local time, at a closing
(the "CLOSING") on October 18, 2002. At the Closing, the Company will deliver to
you the Notes to be purchased by you in the form of, respectively, a single
Series D Note or Series E Note, as the case may be (or such greater number of
Series D Notes or Series E Notes in denominations of at least $500,000 as you
may request), dated the date of the Closing and registered in your name (or in
the name of your nominee), as indicated in Schedule A, against delivery by you
to the Company or its order of immediately available funds in the amount of the
purchase price therefor by wire transfer of immediately available funds for
credit to such account or accounts as shall be specified in a letter on the
Company's letterhead, in substantially the form of Exhibit 3 attached hereto,
from the Company to you and each of the Other Purchasers. If, at the Closing,
the Company shall fail to tender such Notes to you as provided above in this
Section 3, or any of the conditions specified in Section 4 shall not have been
fulfilled to your satisfaction, you shall, at your election, be relieved of all
further obligations under this Agreement, without thereby waiving any rights you
may have by reason of such failure or such nonfulfillment.

4.       CONDITIONS TO CLOSING.

         Your obligation to purchase and pay for the Notes to be sold to you at
the Closing is subject to the fulfillment to your satisfaction, prior to or at
the Closing, of the following conditions:

         4.1.     REPRESENTATIONS AND WARRANTIES.

         The representations and warranties of the Company in this Agreement
shall be correct when made and at the time of the Closing.

         4.2.     PERFORMANCE; NO DEFAULT.

         The Company shall have performed and complied with all agreements and
conditions contained in the Financing Documents required to be performed or
complied with by the Company prior to or at the Closing and after giving effect
to the issue and sale of the Notes (and the application of the proceeds thereof
as contemplated by Schedule 5.15) no Default or Event of Default shall have
occurred and be continuing. Neither the Company nor any Subsidiary shall have
entered into any transaction since the date of the Memorandum that would have
been prohibited by any of Sections 10.1, 10.3, 10.4, 10.5, 10.6 or 10.7 hereof
had such Sections applied since such date.

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         4.3.     COMPLIANCE CERTIFICATES.

                  (a) OFFICER'S CERTIFICATE. The Company shall have delivered to
         you an Officer's Certificate, dated the date of the Closing, certifying
         that the conditions specified in Sections 4.1, 4.2 and 4.9 have been
         fulfilled.

                  (b) SECRETARY'S CERTIFICATE. The Company shall have delivered
         to you a certificate, signed on its behalf by its Secretary or its
         Assistant Secretary, and one other officer of the Company, dated the
         date of the Closing, certifying as to the resolutions attached thereto
         and other corporate proceedings relating to the authorization,
         execution and delivery of the Notes, this Agreement and the Other
         Agreements.

         4.4.     OPINIONS OF COUNSEL.

         You shall have received opinions in form and substance satisfactory to
you, dated the date of the Closing, from

                  (a) David A. Kastelic, General Counsel for the Company,
         substantially in the form set forth in Exhibit 4.4(a) and covering such
         other matters incident to the transactions contemplated hereby as you
         or your counsel may reasonably request (and the Company hereby
         instructs such counsel to deliver such opinion to you); and

                  (b) Bingham McCutchen LLP, your special counsel in connection
         with such transactions, substantially in the form set forth in Exhibit
         4.4(b) and covering such other matters incident to such transactions as
         you may reasonably request.

         4.5.     PURCHASE PERMITTED BY APPLICABLE LAW, ETC.

         On the date of the Closing, your purchase of Notes and all other
proceedings taken in connection with the transaction contemplated by this
Agreement and the other Financing Documents shall (a) be permitted by the laws
and regulations of each jurisdiction to which you are subject, without recourse
to provisions (such as Section 1405(a)(8) of the New York Insurance Law)
permitting limited investments by insurance companies without restriction as to
the character of the particular investment, (b) not violate any applicable law
or regulation (including, without limitation, Section 5 of the Securities Act or
Regulation T, U or X of the Board of Governors of the Federal Reserve System)
and (c) not subject you to any tax, penalty or liability under or pursuant to
any applicable law or regulation, which law or regulation was not in effect on
the date hereof. If requested by you, you shall have received an Officer's
Certificate certifying as to such matters of fact as you may reasonably specify
to enable you to determine whether such purchase is so permitted.

         4.6.     SALE OF OTHER NOTES.

         Contemporaneously with the Closing, the Company shall sell to the Other
Purchasers and the Other Purchasers shall purchase the Notes to be purchased by
them at the Closing as specified in Schedule A.

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         4.7.     PAYMENT OF SPECIAL COUNSEL FEES.

         Without limiting the provisions of Section 15.1, the Company shall have
paid on or before the Closing the fees, charges and disbursements of your
special counsel referred to in Section 4.4(b) to the extent reflected in a
statement of such counsel rendered to the Company at least one (1) Business Day
prior to the Closing.

         4.8.     PRIVATE PLACEMENT NUMBER.

         A Private Placement number issued by Standard & Poor's CUSIP Service
Bureau (in cooperation with the Securities Valuation Office of the National
Association of Insurance Commissioners) shall have been obtained for each Series
of Notes.

         4.9.     CHANGES IN CORPORATE STRUCTURE.

         Except as specified in Schedule 4.9, the Company shall not have changed
its jurisdiction of incorporation or been a party to any merger or consolidation
and shall not have succeeded to all or any substantial part of the liabilities
of any other entity, at any time following the date of the most recent financial
statements referred to in Schedule 5.5.

         4.10.    OFFEREE LETTER.

         SunTrust Capital Markets, Inc. shall have delivered to the Company,
their counsel, you, each Other Purchaser and your special counsel an offeree
letter, in form and substance satisfactory to you, confirming the manner of the
offering of the Notes by SunTrust Capital Markets, Inc.

         4.11.    PROCEEDINGS AND DOCUMENTS.

         All corporate and other proceedings in connection with the transactions
contemplated by this Agreement and all documents and instruments incident to
such transactions shall be satisfactory to you and your special counsel, and you
and your special counsel shall have received all such counterpart originals or
certified or other copies of such documents as you or they may reasonably
request.

5.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company represents and warrants to you that:

         5.1.     ORGANIZATION; POWER AND AUTHORITY.

         The Company is a nonstock agricultural cooperative corporation duly
organized, validly existing and in good standing under the laws of the State of
Minnesota , and is duly qualified as a foreign corporation and is in good
standing in each jurisdiction in which such qualification is required by law,
other than those jurisdictions as to which the failure to be so qualified or in
good standing could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. The Company has the corporate power
and authority to own or hold under lease the properties it purports to own or
hold under lease, to transact the business it

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transacts and proposes to transact, to execute and deliver this Agreement, the
Other Agreements and the Notes and to perform the provisions hereof and thereof.

         5.2.     AUTHORIZATION, ETC.

         The Company has all requisite corporate power to own and operate its
respective properties and to conduct its business as currently conducted and as
currently proposed to be conducted. The Company has all requisite corporate
power to execute, deliver and perform its obligations under this Agreement and
the Notes. The Company has taken all necessary corporate action to authorize the
execution and delivery of, and the performance of its obligations under, each of
the Financing Documents and this Agreement constitutes, and upon execution and
delivery thereof each Note will constitute a legal, valid and binding obligation
of the Company enforceable against the Company in accordance with its terms,
except, in each case, as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors' rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

         5.3.     DISCLOSURE.

         The Company, through its agent, SunTrust Capital Markets, Inc. has
delivered to you and each Other Purchaser a copy of a Confidential Private
Placement Memorandum, dated September 2002 (the "MEMORANDUM"), relating to the
transactions contemplated hereby. The Memorandum fairly describes, in all
material respects, the general nature of the business and principal properties
of the Company and its Subsidiaries. Except as disclosed in Schedule 5.3, this
Agreement, the other Financing Documents, the Memorandum, the documents,
certificates or other writings delivered to you by or on behalf of the Company
in connection with the transactions contemplated by the Financing Documents and
the financial statements listed in Schedule 5.5, taken as a whole, do not
contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements herein or therein not misleading in light
of the circumstances under which they were made. Except as disclosed in the
Memorandum or as expressly described in Schedule 5.3, or in one of the
documents, certificates or other writings identified therein, or in the
financial statements listed in Schedule 5.5, since August 31, 2001, there has
been no change in the financial condition, operations, business, properties or
prospects of the Company or any Subsidiary except changes that individually or
in the aggregate could not reasonably be expected to have a Material Adverse
Effect. There is no fact known to the Company that could reasonably be expected
to have a Material Adverse Effect that has not been set forth herein or in the
Memorandum or in the other documents, certificates and other writings delivered
to you by or on behalf of the Company specifically for use in connection with
the transactions contemplated hereby.

         5.4.     ORGANIZATION AND OWNERSHIP OF SHARES OF SUBSIDIARIES;
                  AFFILIATES.

                  (a) Schedule 5.4 contains (except as noted therein) complete
         and correct lists of (i) the Company's Subsidiaries, showing, as to
         each Subsidiary, the correct name thereof, the jurisdiction of its
         organization, and the percentage of shares of each class of its capital
         stock or similar equity interests outstanding owned by the Company and
         each

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         other Subsidiary, (ii) the Company's Affiliates, other than
         Subsidiaries, and (iii) the Company's directors and senior officers.

                  (b) All of the outstanding shares of capital stock or similar
         equity interests of each Subsidiary shown in Schedule 5.4 as being
         owned by the Company or its Subsidiaries have been validly issued, are
         fully paid and nonassessable and are owned by the Company or another
         Subsidiary free and clear of any Lien (except as otherwise disclosed in
         Schedule 5.4).

                  (c) Each Subsidiary identified in Schedule 5.4 is a
         corporation or other legal entity duly organized, validly existing and
         in good standing under the laws of its jurisdiction of organization,
         and is duly qualified as a foreign corporation or other legal entity
         and is in good standing in each jurisdiction in which such
         qualification is required by law, other than those jurisdictions as to
         which the failure to be so qualified or in good standing could not,
         individually or in the aggregate, reasonably be expected to have a
         Material Adverse Effect.

                  (d) No Subsidiary is a party to, or otherwise subject to any
         legal restriction or any agreement (other than the agreements listed on
         Schedule 5.4 and customary limitations imposed by corporate law
         statutes) restricting the ability of such Subsidiary to pay dividends
         out of profits or make any other similar distributions of profits to
         the Company or any of its Subsidiaries that owns outstanding shares of
         capital stock or similar equity interests of such Subsidiary.

         5.5.     FINANCIAL STATEMENTS.

         The Company has delivered to you and each Other Purchaser copies of the
financial statements of the Company and its Subsidiaries listed on Schedule 5.5.
All of said financial statements (including in each case the related schedules
and notes) fairly present in all material respects the consolidated financial
position of the Company and its Subsidiaries as of the respective dates
specified in such Schedule and the consolidated results of their operations and
cash flows for the respective periods so specified and have been prepared in
accordance with GAAP consistently applied throughout the periods involved except
as set forth in the notes thereto (subject, in the case of any interim financial
statements, to normal year-end adjustments).

         5.6.     COMPLIANCE WITH LAWS, OTHER INSTRUMENTS, ETC.

         The execution, delivery and performance by the Company of this
Agreement and the Notes will not (a) contravene, result in any breach of, or
constitute a default under, or result in the creation of any Lien in respect of
any property of the Company or any Subsidiary under, any indenture, mortgage,
deed of trust, loan, purchase or credit agreement, lease, corporate charter or
by-laws, or any other agreement or instrument to which the Company or any
Subsidiary is bound or by which the Company or any Subsidiary or any of their
respective properties may be bound or affected, (b) conflict with or result in a
breach of any of the terms, conditions or provisions of any order, judgment,
decree, or ruling of any court, arbitrator or Governmental Authority applicable
to the Company or any Subsidiary or (c) violate any provision of any statute or
other rule or regulation of any Governmental Authority applicable to the Company
or any Subsidiary.

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The Company is not a party to any contract or agreement or subject to any
charter or other corporate restrictions which materially and adversely affects
its business, property, assets, financial condition or results of operations,
and the Company is not a party to, or otherwise subject to any provision
contained in, any instrument evidencing Debt of the Company, any agreement
relating thereto or any other contract or agreement (including its charter)
which limits the amount of, or otherwise imposes restrictions on the incurring
of, Debt of the Company of the type to be evidenced by the Notes except as set
forth in the agreements listed in Schedule 5.6 attached hereto (as such Schedule
5.6 may have been modified from time to time by written supplements thereto
delivered by the Company and accepted in writing by the Required Holders). The
provisions of this Agreement and the Notes do not contravene any agreement
listed in Schedule 5.6.

         5.7.     GOVERNMENTAL AUTHORIZATIONS, ETC.

         No consent, approval or authorization of, or registration, filing or
declaration with, any Governmental Authority is required in connection with the
execution, delivery or performance by the Company of this Agreement or the
Notes.

         5.8.     LITIGATION; OBSERVANCE OF AGREEMENTS, STATUTES AND ORDERS.

                  (a) There are no actions, suits, investigations or proceedings
         pending or, to the knowledge of the Company or any of its Subsidiaries,
         threatened against or affecting the Company or any Subsidiary or any
         properties or rights of the Company or any Subsidiary in any court or
         before any arbitrator of any kind or before or by any Governmental
         Authority that, individually or in the aggregate, could reasonably be
         expected to have a Material Adverse Effect.

                  (b) Neither the Company nor any Subsidiary is in default under
         any term of any agreement or instrument to which it is a party or by
         which it is bound, or any order, judgment, decree or ruling of any
         court, arbitrator or Governmental Authority or is in violation of any
         applicable law, ordinance, rule or regulation (including, without
         limitation, Environmental Laws and the USA Patriot Act) of any
         Governmental Authority, which default or violation, individually or in
         the aggregate, could reasonably be expected to have a Material Adverse
         Effect.

         5.9.     TAXES.

         The Company and its Subsidiaries have filed all federal, state and
other tax returns that are, to the knowledge of the officers of the Company,
required to have been filed in any jurisdiction, and have paid all taxes shown
to be due and payable on such returns and all other taxes and assessments levied
upon them or their properties, assets, income or franchises, to the extent such
taxes and assessments have become due and payable and before they have become
delinquent, except for any taxes and assessments (a) the amount of which is not
individually or in the aggregate Material or (b) the amount, applicability or
validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which the Company or a Subsidiary, as the case
may be, has established adequate reserves in accordance with GAAP. The Company
knows of no basis for any other tax or assessment that could reasonably be

                                       7
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expected to have a Material Adverse Effect. The charges, accruals and reserves
on the books of the Company and its Subsidiaries in respect of Federal, state or
other taxes for all fiscal periods are adequate. The Federal income tax
liabilities of the Company and its Subsidiaries have been determined by the
Internal Revenue Service and paid for all fiscal years up to and including the
fiscal year ended December 31, 1998. The Company is a cooperative association
taxed under the provisions of "subchapter T" of the Code and the Company does
not presently intend to alter its status as a subchapter T cooperative
association for federal income tax purposes.

         5.10.    TITLE TO PROPERTY; LEASES.

         Except for defects in title which, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect, the Company
has and each of its Subsidiaries has good and indefeasible title to its
respective real properties (other than properties which it leases) and good
title to all of its other respective properties and assets that individually or
in the aggregate are Material, including all such properties reflected in the
most recent audited balance sheet referred to in Section 5.5 or purported to
have been acquired by the Company or any Subsidiary after said date (except as
sold or otherwise disposed of in the ordinary course of business), in each case
free and clear of Liens prohibited by this Agreement. All leases that
individually or in the aggregate are Material are valid and subsisting and are
in full force and effect in all material respects.

         5.11.    PERMITS AND OTHER OPERATING RIGHTS.

         The Company and each Subsidiary of the Company has all such valid and
sufficient certificates of convenience and necessity, franchises, licenses,
permits, operating rights and other authorizations from all Governmental
Authorities having jurisdiction over the Company or any Subsidiary or any of its
properties, as are necessary for the ownership, operation and maintenance of its
businesses and properties, as presently conducted and as proposed to be
conducted while the Notes are outstanding, subject to exceptions and
deficiencies which, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect, and such certificates of convenience
and necessity, franchises, licenses, permits, operating rights and other
authorizations from all Governmental Authorities or any of its properties are
free from restrictions or conditions which, individually or in the aggregate,
would reasonably be expected to have a Material Adverse Effect.

         5.12.    INTELLECTUAL PROPERTY.

         Except as disclosed in Schedule 5.12,

                  (a) the Company and its Subsidiaries own or possess all
         patents, copyrights, service marks, trademarks and trade names, or
         rights thereto, that individually or in the aggregate are Material,
         without known conflict with the rights of others;

                  (b) to the best knowledge of the Company, no product or
         practice of the Company or any Subsidiary infringes in any material
         respect any patent, copyright, service mark, trademark, trade name or
         other right owned by any other Person; and

                                       8
<PAGE>

                  (c) to the best knowledge of the Company, there is no Material
         violation by any Person of any right of the Company or any of its
         Subsidiaries with respect to any patent, copyright, service mark,
         trademark, trade name or other right owned or used by the Company or
         any of its Subsidiaries.

         5.13.    COMPLIANCE WITH ERISA.

                  (a) The Company and each ERISA Affiliate have operated and
         administered each Plan in compliance with all applicable laws except
         for such instances of noncompliance as have not resulted in and could
         not reasonably be expected to result in a Material Adverse Effect.
         Neither the Company nor any ERISA Affiliate has incurred any liability
         pursuant to Title I or IV of ERISA (aside from ordinary claims for
         benefits under the Plans) or the penalty or excise tax provisions of
         the Code relating to employee benefit plans (as defined in Section 3 of
         ERISA), and no event, transaction or condition has occurred or exists
         that could reasonably be expected to result in the incurrence of any
         such liability by the Company or any ERISA Affiliate, or in the
         imposition of any Lien on any of the rights, properties or assets of
         the Company or any ERISA Affiliate, in either case pursuant to Title I
         or IV of ERISA or to such penalty or excise tax provisions or to
         Section 401(a)(29) or 412 of the Code, other than such liabilities or
         Liens as would not be individually or in the aggregate Material.

                  (b) The present value of the aggregate benefit liabilities
         under each of the Plans (other than Multiemployer Plans), determined as
         of the end of such Plan's most recently ended plan year on the basis of
         the actuarial assumptions specified for funding purposes in such Plan's
         most recent actuarial valuation report, did not exceed the aggregate
         current value of the assets of such Plan allocable to such benefit
         liabilities by more than $15,000,000 for any single Plan or by more
         than $20,000,000, in the aggregate, for all such Plans. The term
         "BENEFIT LIABILITIES" has the meaning specified in section 4001 of
         ERISA and the terms "CURRENT VALUE" and "PRESENT VALUE" have the
         meaning specified in section 3 of ERISA.

                  (c) The Company and its ERISA Affiliates have not incurred
         withdrawal liabilities (and are not subject to contingent withdrawal
         liabilities) under section 4201 or 4204 of ERISA in respect of
         Multiemployer Plans that individually or in the aggregate are Material.

                  (d) The expected postretirement benefit obligation (determined
         as of the last day of the Company's most recently ended fiscal year in
         accordance with Financial Accounting Standards Board Statement No. 106,
         without regard to liabilities attributable to continuation coverage
         mandated by section 4980B of the Code) of the Company and its
         Subsidiaries is not Material.

                  (e) The execution and delivery of the Financing Documents and
         the issuance and sale of the Notes hereunder will not involve any
         transaction that is subject to the prohibitions of section 406 of ERISA
         or in connection with which a tax could be imposed pursuant to section
         4975(c)(1)(A)-(D) of the Code. The representation by the Company in the
         first sentence of this Section 5.13(e) is made in reliance upon and
         subject to the

                                       9
<PAGE>

         accuracy of your representation in Section 6.2 as to the sources of the
         funds used to pay the purchase price of the Notes to be purchased by
         you.

         5.14.    PRIVATE OFFERING BY THE COMPANY.

         Neither the Company nor anyone acting on its behalf has, directly or
indirectly, offered the Notes or any similar securities for sale to, or
solicited any offer to buy any of the same from, or otherwise approached or
negotiated in respect thereof with, any Person other than you, the Other
Purchasers and not more than 31 other Institutional Investors, each of which has
been offered the Notes at a private sale for investment. Neither the Company nor
anyone acting on its behalf has taken, or will take, any action that would
subject the issuance or sale of the Notes to the registration requirements of
Section 5 of the Securities Act or to the provisions of any securities or "blue
sky" laws of any applicable jurisdiction.

         5.15.    USE OF PROCEEDS; MARGIN REGULATIONS.

                  (a) USE OF PROCEEDS. The Company will apply the proceeds of
         the sale of the Notes as set forth in Schedule 5.15.

                  (b) MARGIN REGULATIONS. None of the Company or any of its
         Subsidiaries owns or has any present intention of acquiring any "margin
         stock" as defined in Regulation U (12 CFR Part 221) of the Board of
         Governors of the Federal Reserve System of the United States (herein
         called "MARGIN STOCK") under such circumstances as to involve either
         the Company or any Subsidiary in a violation of said Regulation U. No
         part of the proceeds from the sale of the Notes hereunder will be used,
         directly or indirectly, for the purpose, whether immediate, incidental
         or ultimate, of purchasing or carrying any margin stock or for the
         purpose of maintaining, reducing or retiring any Debt which was
         originally incurred to purchase or carry any stock that is currently a
         margin stock or for any other purpose which might constitute this
         transaction a "purpose credit" within the meaning of such Regulation U.
         The Company is not engaged principally, or as one of its important
         activities, in the business of extending credit for the purpose of
         purchasing or carrying margin stock. Neither the Company nor any agent
         acting on its behalf has taken or will take any action which might
         cause this Agreement or the Notes to violate Regulation T, Regulation U
         or any other regulation of the Board of Governors of the Federal
         Reserve System of the United States or to violate the Exchange Act, in
         each case as in effect now or as the same may hereafter be in effect.

         5.16.    EXISTING DEBT; FUTURE LIENS.

                  (a) Except as described therein, Schedule 5.16 sets forth a
         complete and correct list of all outstanding Debt of the Company and
         its Subsidiaries in excess of $10,000,000 or having commitments in
         excess thereof as of the date of the Closing. Neither the Company nor
         any Subsidiary is in default and no waiver of default is currently in
         effect, in the payment of any principal or interest on any Debt of the
         Company or such Subsidiary and no event or condition exists with
         respect to any Debt of the Company or any Subsidiary that would permit
         (or that with notice or the lapse of

                                       10
<PAGE>

         time, or both, would permit) one or more Persons to cause such Debt to
         become due and payable before its stated maturity or before its
         regularly scheduled dates of payment.

                  (b) The aggregate amount of all outstanding Debt of the
         Company and its Subsidiaries not set forth on Schedule 5.16 does not
         exceed $5,000,000 in the aggregate.

                  (c) Except as disclosed in Schedule 5.16, neither the Company
         nor any Subsidiary has agreed or consented to cause or permit in the
         future (upon the happening of a contingency or otherwise) any of its
         property, whether now owned or hereafter acquired, to be subject to a
         Lien not permitted by Section 10.6.

         5.17.    FOREIGN ASSETS CONTROL REGULATIONS, ETC.

                  (a) Neither the sale of the Notes by the Company hereunder nor
         its use of the proceeds thereof will violate the Trading with the Enemy
         Act, as amended, or any of the foreign assets control regulations of
         the United States Treasury Department (31 CFR, Subtitle B, Chapter V,
         as amended) or any enabling legislation or executive order relating
         thereto.

                  (b) Neither the Company nor any of its Subsidiaries has
         violated, nor will any of them violate, the provisions of United States
         Executive Order 13224 of September 23, 2001 Blocking Property and
         Prohibiting Transactions With Persons Who Commit, Threaten to Commit,
         or Support Terrorism (Exec. Order No. 13224, 66 Fed. Reg. 49079
         (2001)).

         5.18.    STATUS UNDER CERTAIN STATUTES.

         Neither the Company nor any Subsidiary is subject to regulation under
the Investment Company Act of 1940, as amended, the Public Utility Holding
Company Act of 1935, as amended, the ICC Termination Act of 1995, as amended, or
the Federal Power Act, as amended.

         5.19.    ENVIRONMENTAL MATTERS.

         Neither the Company nor any Subsidiary has knowledge of any claim or
has received any notice of any claim, and no proceeding has been instituted
raising any claim against the Company or any of its Subsidiaries or any of their
respective real properties now or formerly owned, leased or operated by any of
them or other assets, alleging any damage to the environment or violation of any
Environmental Laws, except, in each case, such as could not reasonably be
expected to result in a Material Adverse Effect. Except as otherwise disclosed
to you in writing,

                  (a) neither the Company nor any Subsidiary has knowledge of
         any facts which would give rise to any claim, public or private, of
         violation of Environmental Laws or damage to the environment emanating
         from, occurring on or in any way related to real properties now or
         formerly owned, leased or operated by any of them or to other assets or
         their use, except, in each case, such as could not reasonably be
         expected to result in a Material Adverse Effect;

                                       11
<PAGE>

                  (b) neither the Company nor any of its Subsidiaries has stored
         any Hazardous Materials on real properties now or formerly owned,
         leased or operated by any of them and has not disposed of any Hazardous
         Materials in a manner contrary to any Environmental Laws in each case
         in any manner that could reasonably be expected to result in a Material
         Adverse Effect; and

                  (c) all buildings on all real properties now owned, leased or
         operated by the Company or any of its Subsidiaries are in compliance
         with applicable Environmental Laws, except where failure to comply
         could not reasonably be expected to result in a Material Adverse
         Effect.

         5.20.    SOLVENCY.

         The Company, after giving effect to the transactions contemplated by
the Financing Documents, will not be engaged in any business or transaction, or
about to engage in any business or transaction, for which the Company has
unreasonably small assets or capital (within the meaning of the Uniform
Fraudulent Transfer Act, the Uniform Fraudulent Conveyance Act and Section 548
of Title 11 of the United States Code), and the Company does not have any intent
to hinder, delay or defraud any Person to which it is, or will become, on or
after the date of Closing, indebted to or to incur debts that would be beyond
its ability to pay as they mature.

         5.21. HOSTILE TENDER OFFERS.

         None of the proceeds of the sale of any Notes will be used to finance a
Hostile Tender Offer.

         5.22.    RANKING OF NOTES.

         The Company's obligations under the Notes and this Agreement will, upon
issuance of the Notes, rank at least PARI PASSU, without preference or priority,
with all of its other outstanding unsecured and unsubordinated obligations,
except for those obligations that are, or are liable to be, mandatorily
preferred by law.

6.       REPRESENTATIONS OF THE PURCHASER.

         6.1.     PURCHASE FOR INVESTMENT.

         You represent that you are purchasing the Notes for your own account or
for one or more separate accounts maintained by you or for the account of one or
more pension or trust funds and not with a view to the distribution thereof,
PROVIDED that the disposition of your or their property shall at all times be
within your or their control. You understand that the Notes have not been
registered under the Securities Act and may be resold only if registered
pursuant to the provisions of the Securities Act or if an exemption from
registration is available, except under circumstances where neither such
registration nor such an exemption is required by law, and that the Company is
not required to register the Notes.

                                       12
<PAGE>

         6.2.     SOURCE OF FUNDS.

         You represent that at least one of the following statements is an
accurate representation as to each source of funds (a "SOURCE") to be used by
you to pay the purchase price of the Notes to be purchased by you hereunder:

                  (a) the Source is an "insurance company general account" (as
         the term is defined in the United States Department of Labor's
         Prohibited Transaction Exemption ("PTE") 95-60) in respect of which the
         reserves and liabilities (as defined by the annual statement for life
         insurance companies approved by the National Association of Insurance
         Commissioners (the "NAIC ANNUAL STATEMENT")) for the general account
         contract(s) held by or on behalf of any employee benefit plan together
         with the amount of the reserves and liabilities for the general account
         contract(s) held by or on behalf of any other employee benefit plans
         maintained by the same employer (or affiliate thereof as defined in PTE
         95-60) or by the same employee organization in the general account do
         not exceed 10% of the total reserves and liabilities of the general
         account (exclusive of separate account liabilities) plus surplus as set
         forth in the NAIC Annual Statement filed with your state of domicile;
         or

                  (b) the Source is a separate account that is maintained solely
         in connection with your fixed contractual obligations under which the
         amounts payable, or credited, to any employee benefit plan (or its
         related trust) that has any interest in such separate account (or to
         any participant or beneficiary of such plan (including any annuitant))
         are not affected in any manner by the investment performance of the
         separate account; or

                  (c) the Source is either (i) an insurance company pooled
         separate account, within the meaning of PTE 90-1 or (ii) a bank
         collective investment fund, within the meaning of the PTE 91-38 and,
         except as disclosed by you to the Company in writing pursuant to this
         clause (c), no employee benefit plan or group of plans maintained by
         the same employer or employee organization beneficially owns more than
         10% of all assets allocated to such pooled separate account or
         collective investment fund; or

                  (d) the Source constitutes assets of an "investment fund"
         (within the meaning of Part V of PTE 84-14 (the "QPAM EXEMPTION"))
         managed by a "qualified professional asset manager" or "QPAM" (within
         the meaning of Part V of the QPAM Exemption), no employee benefit
         plan's assets that are included in such investment fund, when combined
         with the assets of all other employee benefit plans established or
         maintained by the same employer or by an affiliate (within the meaning
         of Section V(c)(1) of the QPAM Exemption) of such employer or by the
         same employee organization and managed by such QPAM, exceed 20% of the
         total client assets managed by such QPAM, the conditions of Part I(c)
         and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a
         person controlling or controlled by the QPAM (applying the definition
         of "control" in Section V(e) of the QPAM Exemption) owns a 5% or more
         interest in the Company and (i) the identity of such QPAM and (ii) the
         names of all employee benefit plans whose assets are included in such
         investment fund have been disclosed to the Company in writing pursuant
         to this clause (d); or

                                       13
<PAGE>

                  (e) the Source constitutes assets of a "plan(s)" (within the
         meaning of Section IV of PTE 96-23 (the "INHAM EXEMPTION")) managed by
         an "in-house asset manager" or "INHAM" (within the meaning of Part IV
         of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of
         the INHAM Exemption are satisfied, neither the INHAM nor a person
         controlling or controlled by the INHAM (applying the definition of
         "control" in Section IV(h) of the INHAM Exemption) owns a 5% or more
         interest in the Company and (i) the identity of such INHAM and (ii) the
         name(s) of the employee benefit plan(s) whose assets constitute the
         Source have been disclosed to the Company in writing pursuant to this
         clause (e); or

                  (f) the Source is a governmental plan; or

                  (g) the Source is one or more employee benefit plans, or a
         separate account or trust fund comprised of one or more employee
         benefit plans, each of which has been identified to the Company in
         writing pursuant to this paragraph (g); or

                  (h) the Source does not include assets of any employee benefit
         plan, other than a plan exempt from the coverage of ERISA.

As used in this Section 6.2, the terms "EMPLOYEE BENEFIT PLAN", "GOVERNMENTAL
PLAN" and "SEPARATE ACCOUNT" shall have the respective meanings assigned to such
terms in Section 3 of ERISA.

7.       INFORMATION AS TO COMPANY.

         7.1.     FINANCIAL AND BUSINESS INFORMATION.

         The Company shall deliver to each holder of Notes that is an
Institutional Investor:

                  (a) QUARTERLY STATEMENTS -- within 45 days after the end of
         each quarterly fiscal period in each fiscal year of the Company (other
         than the last quarterly fiscal period of each such fiscal year),
         duplicate copies of,

                           (i) a consolidated balance sheet of the Company and
                  its Subsidiaries as at the end of such quarter, and

                           (ii) consolidated statements of income, changes in
                  members' equity and cash flows of the Company and its
                  Subsidiaries, for such quarter and (in the case of the second
                  and third quarters) for the portion of the fiscal year ending
                  with such quarter,

         setting forth in each case in comparative form the figures for the
         corresponding periods in the previous fiscal year, all in reasonable
         detail, prepared in accordance with GAAP applicable to quarterly
         financial statements generally, and certified by a Senior Financial
         Officer as fairly presenting, in all material respects, the financial
         position of the companies being reported on and their results of
         operations and cash flows, subject to changes resulting from year-end
         adjustments, provided that delivery within the time period specified
         above of copies of the Company's Quarterly Report on Form 10-Q prepared
         in compliance with the

                                       14
<PAGE>

         requirements therefor and filed with the Securities and Exchange
         Commission shall be deemed to satisfy the requirements of this Section
         7.1(a);

                  (b) ANNUAL STATEMENTS -- within 90 days after the end of each
         fiscal year of the Company, duplicate copies of,

                           (i) consolidated and consolidating balance sheets of
                  the Company and its Subsidiaries, as at the end of such year,
                  and

                           (ii) consolidated and consolidating statements of
                  income and cash flows and a consolidated statement of members'
                  equity of the Company and its Subsidiaries, for such year,

         setting forth in each case, in comparative form, the figures for the
         previous fiscal year, all in reasonable detail, prepared in accordance
         with GAAP, and accompanied by,

                           (A) an opinion thereon of independent certified
                  public accountants of recognized national standing, which
                  opinion shall state that such financial statements present
                  fairly, in all material respects, the financial position of
                  the companies being reported upon and their results of
                  operations and cash flows and have been prepared in conformity
                  with GAAP, and that the examination of such accountants in
                  connection with such financial statements has been made in
                  accordance with generally accepted auditing standards, and
                  that such audit provides a reasonable basis for such opinion
                  in the circumstances, and

                           (B) a certificate of such accountants stating that
                  they have reviewed this Agreement and stating further whether,
                  in making their audit, they have become aware of any condition
                  or event that then constitutes a Default or an Event of
                  Default arising under Section 10.2 insofar as such Default or
                  Event of Default relates to Section 10.2(b)(iii)(B), Sections
                  10.3 through 10.5 and Section 10.7(b), and, if they are aware
                  that any such condition or event then exists, specifying the
                  nature and period of the existence thereof (it being
                  understood that such accountants shall not be liable, directly
                  or indirectly, for any failure to obtain knowledge of any such
                  Default or Event of Default unless such accountants should
                  have obtained knowledge thereof in making an audit in
                  accordance with generally accepted auditing standards or did
                  not make such an audit);

         provided that the delivery within the time period specified above of
         the Company's Annual Report on Form 10-K for such fiscal year (together
         with the Company's annual report to members, if any, prepared pursuant
         to Rule 14a-3 under the Exchange Act) prepared in accordance with the
         requirements therefor and filed with the Securities and Exchange
         Commission, together with the accountant's certificate described in
         clause (B) above, shall be deemed to satisfy the requirements of this
         Section 7.1(b).

                  (c) SEC AND OTHER REPORTS -- promptly upon their becoming
         available, one copy of (i) each financial statement, report, notice or
         proxy statement sent by the Company or any Subsidiary to public
         securities holders generally, and (ii) each regular or

                                       15
<PAGE>

         periodic report, each registration statement (without exhibits except
         as expressly requested by such holder), and each prospectus and all
         amendments thereto filed by the Company or any Subsidiary with the
         Securities and Exchange Commission and of all press releases and other
         statements made available generally by the Company or any Subsidiary to
         the public concerning developments that are Material;

                  (d) NOTICE OF DEFAULT OR EVENT OF DEFAULT -- promptly, and in
         any event within five days after a Responsible Officer becoming aware
         of the existence of any Default or Event of Default or that any Person
         has given any notice or taken any action with respect to a claimed
         default hereunder or that any Person has given any notice or taken any
         action with respect to a claimed default of the type referred to in
         Section 11(f), a written notice specifying the nature and period of
         existence thereof and what action the Company is taking or proposes to
         take with respect thereto;

                  (e) ERISA MATTERS -- promptly, and in any event within five
         days after a Responsible Officer becoming aware of any of the
         following, a written notice setting forth the nature thereof and the
         action, if any, that the Company or an ERISA Affiliate proposes to take
         with respect thereto:

                           (i) with respect to any Plan, any reportable event,
                  as defined in section 4043(b) of ERISA and the regulations
                  thereunder, for which notice thereof has not been waived
                  pursuant to such regulations as in effect on the date hereof;
                  or

                           (ii) the taking by the PBGC of steps to institute, or
                  the threatening by the PBGC of the institution of, proceedings
                  under section 4042 of ERISA for the termination of, or the
                  appointment of a trustee to administer, any Plan, or the
                  receipt by the Company or any ERISA Affiliate of a notice from
                  a Multiemployer Plan that such action has been taken by the
                  PBGC with respect to such Multiemployer Plan; or

                           (iii) any event, transaction or condition that could
                  result in the incurrence of any liability by the Company or
                  any ERISA Affiliate pursuant to Title I or IV of ERISA or the
                  penalty or excise tax provisions of the Code relating to
                  employee benefit plans, or in the imposition of any Lien on
                  any of the rights, properties or assets of the Company or any
                  ERISA Affiliate pursuant to Title I or IV of ERISA or such
                  penalty or excise tax provisions, if such liability or Lien,
                  taken together with any other such liabilities or Liens then
                  existing, could reasonably be expected to have a Material
                  Adverse Effect;

                  (f) NOTICES FROM GOVERNMENTAL AUTHORITY -- promptly, and in
         any event within 30 days of receipt thereof, copies of any notice to
         the Company or any Subsidiary from any Governmental Authority relating
         to any order, ruling, statute or other law or regulation that could
         reasonably be expected to have a Material Adverse Effect; and

                  (g) REQUESTED INFORMATION -- with reasonable promptness, such
         other data and information relating to the business, operations,
         affairs, financial condition, assets or properties of the Company or
         any of its Subsidiaries or relating to the ability of the

                                       16
<PAGE>

         Company to perform its obligations hereunder and under the Financing
         Documents as from time to time may be reasonably requested by any such
         holder of Notes; and

                  (h) INFORMATION REQUIRED BY RULE 144A - with reasonable
         promptness, upon the request of any such holder, such financial and
         other information as such holder may reasonably determine to be
         necessary in order to permit compliance with the information
         requirements of Rule 144A under the Securities Act in connection with
         the resale of Notes, except at such times as the Company is subject to
         and in compliance with the reporting requirements of section 13 or
         15(d) of the Exchange Act.

         7.2.     OFFICER'S CERTIFICATE.

         Each set of financial statements delivered to a holder of Notes
pursuant to Section 7.1(a) or Section 7.1(b) hereof shall be accompanied by a
certificate of a Senior Financial Officer setting forth:

                  (a) COVENANT COMPLIANCE -- the information (including detailed
         calculations) required in order to establish whether the Company was in
         compliance with the requirements of Sections 10.3 through 10.5 and
         Section 10.7 hereof, inclusive, during the quarterly or annual period
         covered by the statements then being furnished (including with respect
         to each such Section, where applicable, the calculations of the maximum
         or minimum amount, ratio or percentage, as the case may be, permissible
         under the terms of such Sections, and the calculation of the amount,
         ratio or percentage then in existence); and

                  (b) EVENT OF DEFAULT -- a statement that such officer has
         reviewed the relevant terms hereof and has made, or caused to be made,
         under his or her supervision, a review of the transactions and
         conditions of the Company and its Subsidiaries from the beginning of
         the quarterly or annual period covered by the statements then being
         furnished to the date of the certificate and that such review shall not
         have disclosed the existence during such period of any condition or
         event that constitutes a Default or an Event of Default or, if any such
         condition or event existed or exists (including, without limitation,
         any such event or condition resulting from the failure of the Company
         or any Subsidiary to comply with any Environmental Law), specifying the
         nature and period of existence thereof and what action the Company
         shall have taken or proposes to take with respect thereto.

7.3.     INSPECTION.

         The Company shall permit the representatives of each holder of Notes
that is an Institutional Investor:

                  (a) NO DEFAULT -- if no Default or Event of Default then
         exists, at the expense of such holder and upon reasonable prior notice
         to the Company, to visit the principal executive office of the Company
         or any Subsidiary, to discuss the affairs, finances and accounts of the
         Company and its Subsidiaries with the Company's officers, and (with the
         consent of the Company, which consent will not be unreasonably
         withheld) its independent public accountants, and (with the consent of
         the Company, which consent

                                       17
<PAGE>

         will not be unreasonably withheld) to visit the other offices and
         properties of the Company and each Subsidiary, all at such reasonable
         times and as often as may be reasonably requested in writing; and

                  (b) DEFAULT -- if a Default or Event of Default then exists,
         at the expense of the Company to visit and inspect any of the offices
         or properties of the Company or any Subsidiary, to examine all their
         respective books of account, records, reports and other papers, to make
         copies and extracts therefrom, and to discuss their respective affairs,
         finances and accounts with their respective officers and independent
         public accountants (and by this provision the Company authorizes said
         accountants to discuss the affairs, finances and accounts of the
         Company and its Subsidiaries), all at such times and as often as may be
         requested.

8.       INTEREST; PAYMENT OF THE NOTES.

         8.1.     INTEREST PAYMENTS.

         Interest on the Series D Notes shall accrue on the unpaid principal
balance of the Series D Notes at the rates and shall be computed on the basis as
described in the Series D Notes. Interest on the Series E Notes shall accrue on
the unpaid principal balance of the Series E Notes at the rates and shall be
computed on the basis as described in the Series E Notes. In each case, interest
shall be due and payable as provided in the respective Notes.

         8.2.     REQUIRED PRINCIPAL PAYMENTS.

                  (a) Required Principal Payments; Maturity.

                           (i) SERIES D NOTES. The Company shall pay, and there
                  shall become due and payable with respect to the Series D
                  Notes, the principal amount of $8,846,154 (each such payment a
                  "SERIES D REQUIRED PRINCIPAL PAYMENT") on October 18th and
                  April 18th in each year commencing on October 18, 2006 to and
                  including April 18, 2012; PROVIDED, however, that the
                  principal amount of the Series D Notes prepaid or purchased
                  pursuant to Section 8.2(b), Section 8.3 or Section 10.7 shall
                  be applied against the principal amount of each Series D
                  Required Principal Payment becoming due under this Section
                  8.2(a) in inverse order of their scheduled due dates. Each
                  Series D Required Principal Payment shall be at 100% of the
                  principal amount paid, together with interest accrued thereon
                  to the date of payment. The entire remaining outstanding
                  principal amount of the Series D Notes, together with all
                  accrued and unpaid interest thereon, shall be due and payable
                  on October 18, 2012.

                           (ii) SERIES E NOTES. The Company shall pay, and there
                  shall become due and payable with respect to the Series E
                  Notes, the principal amount of $4,615,385 (each such payment a
                  "SERIES E REQUIRED PRINCIPAL PAYMENT") on October 18th and
                  April 18th in each year commencing on October 18, 2011 to and
                  including April 18, 2017; PROVIDED, however, that the
                  principal amount of the Series E Notes prepaid or purchased
                  pursuant to Section 8.2(b), Section 8.3 or Section 10.7 shall
                  be applied against the principal amount of each Series E

                                       18
<PAGE>

                  Required Principal Payment becoming due under this Section
                  8.2(a) in inverse order of their scheduled due dates. Each
                  Series E Required Principal Payment shall be at 100% of the
                  principal amount paid, together with interest accrued thereon
                  to the date of payment. The entire remaining outstanding
                  principal amount of the Series E Notes, together with all
                  accrued and unpaid interest thereon, shall be due and payable
                  on October 18, 2017.

                  (b)      OFFER TO PAY NOTES UPON CHANGE IN CONTROL.

                           (i) NOTICE AND OFFER. The Company will not take any
                  action that consummates or finalizes a Change in Control
                  unless at least thirty (30) days prior to such action it shall
                  have given to each holder of the Notes written notice of such
                  impending Change in Control. The Company will, within five (5)
                  Business Days after any Responsible Officer has knowledge of
                  the occurrence of any Change in Control, give written notice
                  of such Change in Control to each holder of Notes in the
                  manner set forth in Section 18. If a Change in Control has
                  occurred, such written notice shall contain, and shall
                  constitute an irrevocable offer to prepay all or (at such
                  holder's option) any portion of the Notes held by such holder
                  on a date specified in such notice (the "PROPOSED PREPAYMENT
                  DATE") that is not less than thirty (30) days and not more
                  than sixty (60) days after the date of such notice. If the
                  Proposed Prepayment Date shall not be specified in such
                  notice, the Proposed Prepayment Date shall be the 30th day
                  after the date such notice shall have been sent by the
                  Company. In no event will the Company take any action to
                  consummate or finalize a Change in Control unless the Company
                  has given the notice required by this Section 8.2(b)(i) and,
                  contemporaneously with such action, the Company prepays all
                  Notes required to be prepaid in accordance with Section
                  8.2(b)(ii) hereof.

                           (ii) ACCEPTANCE AND PAYMENT. A holder of Notes may
                  accept the offer to prepay made pursuant to Section 8.2(b)(i)
                  by causing a notice of acceptance of such offered prepayment
                  (specifying in such notice the amount of Notes with respect to
                  which such acceptance applies and the Series of Notes) to be
                  delivered to the Company prior to the Proposed Prepayment Date
                  (it being understood that the failure by a holder to respond
                  to such written offer of prepayment prior to the Proposed
                  Prepayment Date shall be deemed to constitute a rejection of
                  such offer with respect to all Notes held by such holder). If
                  so accepted, such offered prepayment shall be due and payable
                  on the Proposed Prepayment Date. Such offered prepayment shall
                  be made at 100% of the principal amount of such Notes so
                  prepaid, PLUS interest on all such Notes accrued to the
                  Proposed Prepayment Date. If the Company shall at any time
                  receive an acceptance to an offer to prepay Notes pursuant to
                  this Section 8.2(b)(ii) from some, but not all of, the holders
                  of the Notes, then the Company will, within two (2) Business
                  Days after the receipt of such acceptance, give written notice
                  of such acceptance to each other holder of the Notes.

                                       19
<PAGE>

                           (iii) OFFICER'S CERTIFICATE. Each offer to prepay the
                  Notes pursuant to Section 8.2(b) shall be accompanied by a
                  certificate, executed by a Responsible Officer of the Company
                  and dated the date of such offer, specifying:

                                    (A) the Proposed Prepayment Date;

                                    (B) that such payment is to be made pursuant
                           to the provisions of Section 8.2(b) of this
                           Agreement;

                                    (C) the outstanding principal amount as of
                           the Proposed Prepayment Date of each Note offered to
                           be prepaid;

                                    (D) the unpaid interest that would be due on
                           each such Note offered to be prepaid, accrued to the
                           date fixed for payment;

                                    (E) that the conditions of Section 8.2(b)
                           have been fulfilled; and

                                    (F) in reasonable detail, the nature and
                           date or proposed date of the Change in Control.

         8.3.     OPTIONAL PREPAYMENTS WITH MAKE-WHOLE AMOUNT.

         The Company may, at its option, upon notice as provided below, prepay
at any time all, or from time to time any part of, the Notes, in integral
multiples of $1,000,000 and in a minimum amount of $5,000,000, at 100% of the
principal amount so prepaid, plus interest thereon to the prepayment date and
the Make-Whole Amount determined for the prepayment date with respect to such
principal amount. The Company will give each holder of Notes written notice of
each optional prepayment under this Section 8.3 not less than ten (10) Business
Days and not more than sixty (60) days prior to the date fixed for such
prepayment. Each such notice shall specify such prepayment date, the aggregate
principal amount of the Notes to be prepaid on such date, the principal amount
of each Note held by such holder to be prepaid (determined in accordance with
Section 8.4), and the interest to be paid on the prepayment date with respect to
such principal amount being prepaid, and shall be accompanied by a certificate
of a Senior Financial Officer as to the estimated Make-Whole Amount due in
connection with such prepayment (calculated as if the date of such notice were
the date of the prepayment), setting forth the details of such computation. Two
(2) Business Days prior to such prepayment, the Company shall deliver to each
holder of Notes a certificate of a Senior Financial Officer specifying the
calculation of such Make-Whole Amount as of the specified prepayment date. Any
partial prepayment of the Notes pursuant to this Section 8.3 shall be applied in
satisfaction of required payments of principal in inverse order of their
scheduled due dates.

         8.4.     ALLOCATION OF PARTIAL PREPAYMENTS.

         In the case of each partial prepayment of the Notes pursuant to Section
8.3, the principal amount of the Notes to be prepaid shall be allocated among
all of the Notes (without distinguishing among the different Series) at the time
outstanding in proportion, as nearly as

                                       20
<PAGE>

practicable, to the respective unpaid principal amounts thereof not theretofore
called for prepayment.

         8.5.     MATURITY; SURRENDER, ETC.

         In the case of each prepayment of Notes pursuant to this Section 8, the
principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment, together with interest on such
principal amount accrued to such date and, in the case of any such prepayment
pursuant to Section 8.3, the applicable Make-Whole Amount, if any. From and
after such date, unless the Company shall fail to pay such principal amount when
so due and payable, together with the interest and Make-Whole Amount, if any, as
aforesaid, interest on such principal amount shall cease to accrue. Any Note
paid or prepaid in full shall be surrendered to the Company and cancelled and
shall not be reissued, and no Note shall be issued in lieu of any prepaid
principal amount of any Note.

         8.6.     PURCHASE OF NOTES.

         The Company will not and will not permit any Affiliate to purchase,
redeem, prepay or otherwise acquire, directly or indirectly, any of the
outstanding Notes except upon the payment or prepayment of the Notes in
accordance with the terms of this Agreement and the Notes. The Company will
promptly cancel all Notes acquired by it or any Affiliate pursuant to any
payment, prepayment or purchase of Notes pursuant to any provision of this
Agreement and no Notes may be issued in substitution or exchange for any such
Notes.

         8.7.     MAKE-WHOLE AMOUNT.

         The term "MAKE-WHOLE AMOUNT" means, with respect to any Note, an amount
equal to the excess, if any, of the Discounted Value of the Remaining Scheduled
Payments with respect to the Called Principal of such Note over the amount of
such Called Principal, PROVIDED that the Make-Whole Amount may in no event be
less than zero. For the purposes of determining the Make-Whole Amount, the
following terms have the following meanings:

                  "CALLED PRINCIPAL" means, with respect to any Note, the
         principal of such Note that is to be prepaid pursuant to Section 8.3 or
         has become or is declared to be immediately due and payable pursuant to
         Section 12.1, as the context requires.

                  "DISCOUNTED VALUE" means, with respect to the Called Principal
         of any Note, the amount obtained by discounting all Remaining Scheduled
         Payments with respect to such Called Principal from their respective
         scheduled due dates to the Settlement Date with respect to such Called
         Principal, in accordance with accepted financial practice and at a
         discount factor (applied on the same periodic basis as that on which
         interest on the Notes is payable) equal to the Reinvestment Yield with
         respect to such Called Principal.

                  "REINVESTMENT YIELD" means, with respect to the Called
         Principal of any Note, the sum of (a) 0.50% per annum PLUS (b) the
         yield to maturity implied by (i) the yields reported, as of 10:00 A.M.
         (New York City time) on the second Business Day preceding the
         Settlement Date with respect to such Called Principal, on the display
         designated as "Page PX1" on the Bloomberg Financial Market Service (or
         such other display as may

                                       21
<PAGE>

         replace Page PX1 on the Bloomberg Financial Market Service) for
         actively traded U.S. Treasury securities having a maturity equal to the
         Remaining Average Life of such Called Principal as of such Settlement
         Date, or (ii) if such yields are not reported as of such time or the
         yields reported as of such time are not ascertainable, the Treasury
         Constant Maturity Series Yields reported, for the latest day for which
         such yields have been so reported as of the second Business Day
         preceding the Settlement Date with respect to such Called Principal, in
         Federal Reserve Statistical Release H.15 (519) (or any comparable
         successor publication) for actively traded U.S. Treasury securities
         having a constant maturity equal to the Remaining Average Life of such
         Called Principal as of such Settlement Date. Such implied yield will be
         determined, if necessary, by (a) converting U.S. Treasury bill
         quotations to bond-equivalent yields in accordance with accepted
         financial practice and (b) interpolating linearly between (i) the
         actively traded U.S. Treasury security with the maturity closest to and
         greater than the Remaining Average Life and (ii) the actively traded
         U.S. Treasury security with the maturity closest to and less than the
         Remaining Average Life.

                  "REMAINING AVERAGE LIFE" means, with respect to any Called
         Principal, the number of years (calculated to the nearest one-twelfth
         year) obtained by dividing (a) such Called Principal into (b) the sum
         of the products obtained by multiplying (i) the principal component of
         each Remaining Scheduled Payment with respect to such Called Principal
         by (ii) the number of years (calculated to the nearest one-twelfth
         year) that will elapse between the Settlement Date with respect to such
         Called Principal and the scheduled due date of such Remaining Scheduled
         Payment.

                  "REMAINING SCHEDULED PAYMENTS" means, with respect to the
         Called Principal of any Note, all payments of such Called Principal and
         interest thereon that would be due after the Settlement Date with
         respect to such Called Principal if no payment of such Called Principal
         were made prior to its scheduled due date, PROVIDED that if such
         Settlement Date is not a date on which interest payments are due to be
         made under the terms of the Notes, then the amount of the next
         succeeding scheduled interest payment will be reduced by the amount of
         interest accrued to such Settlement Date and required to be paid on
         such Settlement Date pursuant to Section 8.3 or 12.1.

                  "SETTLEMENT DATE" means, with respect to the Called Principal
         of any Note, the date on which such Called Principal is to be prepaid
         pursuant to Section 8.3 or has become or is declared to be immediately
         due and payable pursuant to Section 12.1, as the context requires.

9.       AFFIRMATIVE COVENANTS.

         The Company covenants that so long as any of the Notes are outstanding:

         9.1.     COMPLIANCE WITH LAW.

         The Company will and will cause each of its Subsidiaries to comply with
all laws, ordinances or governmental rules or regulations to which each of them
is subject, including, without limitation, Environmental Laws, and will obtain
and maintain in effect all licenses,

                                       22
<PAGE>

certificates, permits, franchises and other governmental authorizations
necessary to the ownership of their respective properties or to the conduct of
their respective businesses, in each case to the extent necessary to ensure that
non-compliance with such laws, ordinances or governmental rules or regulations
or failures to obtain or maintain in effect such licenses, certificates,
permits, franchises and other governmental authorizations could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

         9.2.     INSURANCE.

         The Company will and will cause each of its Subsidiaries to maintain,
with financially sound and reputable insurers, insurance with respect to their
respective properties and businesses against such casualties and contingencies,
of such types, on such terms and in such amounts (including deductibles,
co-insurance and self-insurance, if adequate reserves are maintained with
respect thereto) as is customary in the case of entities of established
reputations engaged in the same or a similar business and similarly situated;
provided, however, the Company may, to the extent permitted by law, provide for
appropriate self-insurance with respect to workers' compensation.

         9.3.     MAINTENANCE OF PROPERTIES.

         The Company will and will cause each of its Subsidiaries to maintain
and keep, or cause to be maintained and kept, their respective properties in
good repair, working order and condition (other than ordinary wear and tear), so
that the business carried on in connection therewith may be properly conducted
at all times, PROVIDED that this Section shall not prevent the Company or any
Subsidiary from discontinuing the operation and the maintenance of any of its
properties if such discontinuance is desirable in the conduct of its business
and the Company has concluded that such discontinuance could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

         9.4.     PAYMENT OF TAXES AND CLAIMS.

         The Company will and will cause each of its Subsidiaries to file all
tax returns required to be filed in any jurisdiction and to pay and discharge
all taxes shown to be due and payable on such returns and all other taxes,
assessments, governmental charges, or levies imposed on them or any of their
properties, assets, income or franchises, and to pay and discharge all amounts
payable for work, labor and materials, in each case to the extent such taxes,
assessments, charges, levies and amounts have become due and payable and before
they have become delinquent and all claims for which sums have become due and
payable that have or might become a Lien on properties or assets of the Company
or any Subsidiary, PROVIDED that neither the Company nor any Subsidiary need pay
any such tax, assessment, charge, levy or amount payable if (a) the amount,
applicability or validity thereof is being actively contested by the Company or
such Subsidiary on a timely basis in good faith and in appropriate proceedings,
and the Company or a Subsidiary has established adequate reserves therefor in
accordance with GAAP on the books of the Company or such Subsidiary or (b) the
nonpayment of all such taxes, assessments, charges, levies and amounts payable
in the aggregate could not reasonably be expected to have a Material Adverse
Effect.

                                       23
<PAGE>

         9.5.     CORPORATE EXISTENCE, ETC.

         Subject to Section 10.2, the Company will at all times preserve and
keep in full force and effect its corporate existence and will at all times
preserve and keep in full force and effect the corporate existence of each of
its Subsidiaries, except to the extent that, with respect to Subsidiaries, in
the good faith judgment of the Company, the failure to do so could not
reasonably be expected to, individually or in the aggregate, have a Material
Adverse Effect. The Company will at all times preserve and keep in full force
and effect all certificates of convenience and necessity, rights and franchises,
licenses, permits, operating rights and other authorization from any
Governmental Authorities as are necessary for the ownership, operation and
maintenance of its and its Subsidiaries' respective businesses and properties,
unless the termination of or failure to preserve and keep in full force and
effect such right, certificate or franchise, license, permit, operating right or
other authorization would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect.

         9.6.     PARI PASSU

         The Company covenants that all Debt owing under the Notes and under
this Agreement will rank at least pari passu with all its other present and
future unsecured Senior Debt.

10.      NEGATIVE COVENANTS.

         The Company covenants that so long as any of the Notes are outstanding:

         10.1.    TRANSACTIONS WITH AFFILIATES.

         The Company will not, and will not permit any Subsidiary to, enter into
directly or indirectly any transaction or Material group of related transactions
(including, without limitation, the purchase, lease, sale or exchange of
properties of any kind or the rendering of any service) with any Affiliate,
except in the ordinary course and pursuant to the reasonable requirements of the
Company's or such Subsidiary's business and upon fair and reasonable terms no
less favorable to the Company or such Subsidiary than would be obtainable in a
comparable arm's-length transaction with a Person not an Affiliate.

10.2.    MERGER, CONSOLIDATION, ETC.

         The Company will not, and will not permit any Subsidiary to, directly
or indirectly, consolidate with, or merge into, any other Person or permit any
other Person to consolidate with, or merge into, it, except that

                  (a) any Subsidiary may consolidate with, or merge into, the
         Company or any Wholly-Owned Subsidiary if, the Company or such
         Wholly-Owned Subsidiary is the surviving corporation; and

                  (b) the Company may consolidate with, or merge into, any other
         Person, or permit any other Person to consolidate with, or merge into,
         it, if

                                       24
<PAGE>

                           (i) the successor formed by such consolidation or the
                  survivor of such merger (the "SURVIVING CORPORATION"), is a
                  solvent corporation organized under the laws of the United
                  States of America or any State thereof (including the District
                  of Columbia),

                           (ii) if the Company is not the Surviving Corporation,
                  (A) the Surviving Corporation shall have executed and
                  delivered to each holder of the Notes its written assumption
                  of the due and punctual performance and payment of each
                  covenant and condition of the Company in this Agreement, the
                  Other Agreements and the Notes, which assumption shall be in
                  form and substance approved in writing by the Required
                  Holders, and (B) the Company shall have caused to be delivered
                  to each holder of the Notes an opinion of nationally
                  recognized independent counsel, or other independent counsel
                  reasonably satisfactory to the Required Holders, to the effect
                  that all agreements or instruments effecting such assumption
                  are enforceable in accordance with their terms and comply with
                  the terms hereof, and

                           (iii) immediately after giving effect to such
                  transaction,

                                    (A) no Default or Event of Default shall
                           exist, and

                                    (B) the Surviving Corporation is permitted
                           to incur at least $1.00 of additional Funded Debt
                           under the provisions of Section 10.3 and Section 10.4
                           and at least $1.00 of additional Priority Debt under
                           the provisions of Section 10.5.

         10.3. FUNDED DEBT TO CONSOLIDATED CASH FLOWS.

         The Company will not permit the ratio of (i) Consolidated Funded Debt
to (ii) Consolidated Cash Flow determined as of the end of the four fiscal
quarter period then most recently ended, to exceed 3.00 to 1.00 at any time.

         10.4. ADJUSTED CONSOLIDATED FUNDED DEBT TO CONSOLIDATED MEMBERS' AND
PATRONS' EQUITY.

         The Company shall not permit the ratio of Adjusted Consolidated Funded
Debt to Consolidated Members' and Patrons' Equity to exceed .80 to 1.00 at any
time.

10.5.    PRIORITY DEBT.

         The Company covenants that it will not, and will not permit any of its
Subsidiaries to, directly or indirectly, create, issue, incur or assume any
Priority Debt if after giving effect thereto the aggregate outstanding principal
amount of all Priority Debt would exceed 20% of Consolidated Net Worth at the
time of such creation, issuance, incurrence or assumption.

                                       25
<PAGE>

         10.6.    LIENS.

         The Company will not, and will not permit any of its Subsidiaries to,
directly or indirectly create, incur, assume or suffer to be created, incurred
or assumed or to exist (upon the happening of a contingency or otherwise), any
Lien on or with respect to any property of the Company or any such Subsidiary,
whether now owned or held or hereafter acquired (unless provision is made
whereby the Notes will be equally and ratably secured with any and all other
obligations thereby secured as provided in the last paragraph of this Section
10.6), except:

                  (a) Liens for taxes, assessments or other governmental charges
         or levies securing obligations not overdue, or if overdue, being
         actively contested in good faith by appropriate proceedings that will
         prevent the forfeiture or sale of any property, provided that adequate
         reserves are established in accordance on the books of the Company or a
         Subsidiary of the Company in accordance with GAAP;

                  (b) attachment, judgment and other similar Liens arising in
         connection with court proceedings, provided the execution or other
         enforcement of such Lien(s) is effectively stayed and the claims
         secured thereby are being actively contested in good faith in such
         manner that the property subject to such Lien(s) is not subject to
         forfeiture or sale, and further provided that adequate reserves are
         established on the books of the Company or a Subsidiary of the Company
         in accordance with GAAP;

                  (c) Liens incidental to the normal conduct of the business of
         the Company or a Subsidiary of the Company or to the ownership by the
         Company or a Subsidiary of its property which were not incurred in
         connection with the borrowing of money or the obtaining of credit or
         advances and which do not in the aggregate materially detract from the
         value of the property of the Company or any Subsidiary of the Company
         for the purpose of such business or materially impair the use thereof
         in the operation of the business of the Company or any Subsidiary of
         the Company, including, without limitation, Liens

                           (i) in connection with workers' compensation,
                  unemployment insurance, social security and other like laws,

                           (ii) to secure (or to obtain letters of credit that
                  secure) the performance of tenders, statutory obligations,
                  surety and performance bonds (of a type other than set forth
                  in Section 10.6(b)), bids, leases (other than Capital Leases),
                  purchase, construction or sales contracts and other similar
                  obligations, in each case not incurred or made in connection
                  with the borrowing of money, the obtaining of advances or
                  credit or the payment of the deferred purchase price of
                  property,

                           (iii) to secure the claims or demands of materialmen,
                  mechanics, carriers, warehousemen, vendors, repairmen,
                  landlords, lessors and other like Persons, arising in the
                  ordinary course of business, and

                                       26
<PAGE>

                           (iv) in the nature of reservations, exceptions,
                  encroachments, easements, rights-of-way, covenants,
                  conditions, restrictions, leases and other similar title
                  exceptions or encumbrances affecting real property;

         PROVIDED that any amounts secured by such Liens are not yet due and
payable.

                  (d) Liens existing as of the date of this Agreement securing
         Debt and set forth on Schedule 5.16 hereto;

                  (e) any Lien renewing, extending or refunding any Lien
         permitted by paragraph (d) of this Section 10.6, provided that (a) the
         principal amount of the Debt secured by such Lien immediately prior to
         such extension, renewal or refunding is not increased or the maturity
         thereof reduced, (b) such Lien is not extended to any other property,
         and (c) immediately after such extension, renewal or refunding no
         Default or Event of Default would exist;

                  (f) Liens on property of the Company or any of its
         Subsidiaries securing Debt owing to the Company or to any of its
         Wholly-Owned Subsidiaries;

                  (g) any Lien created to secure all or any part of the purchase
         price or cost of construction, or to secure Debt incurred or assumed to
         pay all or a part of the purchase price or cost of construction, of any
         property (or any improvement thereon) acquired or constructed by the
         Company or a Subsidiary of the Company after the date of the Closing,
         PROVIDED that

                           (i) no such Lien shall extend to or cover any
                  property other than the property (or improvement thereon)
                  being acquired or constructed or rights relating solely to
                  such item or items of property (or improvement thereon),

                           (ii) the principal amount of Debt secured by any such
                  Lien shall at no time exceed an amount equal to the lesser of
                  (A) the cost to the Company or such Subsidiary of the property
                  (or improvement thereon) being acquired or constructed or (B)
                  the Fair Market Value (as determined in good faith by the
                  Company) of such property, determined at the time of such
                  acquisition or at the time of substantial completion of such
                  construction, and

                           (iii) such Lien shall be created contemporaneously
                  with, or within 180 days after, the acquisition or completion
                  of construction of such property (or improvement thereon);

                  (h) any Lien existing on property acquired by the Company or
         any Subsidiary of the Company at the time such property is so acquired
         (whether or not the Debt secured thereby is assumed by the Company or
         such Subsidiary) or any Lien existing on property of a Person
         immediately prior to the time such Person is merged into or
         consolidated with the Company or any Subsidiary of the Company,
         PROVIDED that

                           (i) no such Lien shall have been created or assumed
                  in contemplation of such acquisition of property or such
                  consolidation or merger,

                                       27
<PAGE>

                           (ii) such Lien shall extend only to the property
                  acquired or the property of such Person merged into or
                  consolidated with the Company or Subsidiary which was subject
                  to such Lien as of the time of such consolidation or merger,
                  and

                           (iii) the principal amount of the Debt secured by any
                  such Lien shall at no time exceed an amount equal to 100% of
                  the Fair Market Value (as determined in good faith by the
                  board of directors of the Company or such Subsidiary) of the
                  property subject thereto at the time of the acquisition
                  thereof or at the time of such merger or consolidation;

                  (i) Liens to CoBank and other cooperatives with respect to
         equity held by the Company in such banks or other cooperatives securing
         Debt, provided that the aggregate amount of such equity securing Debt
         shall not exceed $50,000,000 at any one time; and

                  (j) other Liens not otherwise permitted under clause (a)
         through (i) of this Section 10.6 securing Debt, provided that the
         creation, issuance, incurrence or assumption of such Debt is permitted
         under Sections 10.3, 10.4 and 10.5 hereof.

If, notwithstanding the prohibition contained herein, the Company shall, or
shall permit any of its Subsidiaries to, directly or indirectly create, incur,
assume or permit to exist any Lien, other than those Liens permitted by the
provisions of paragraphs (a) through (j) of this Section 10.6 (but including any
Liens in respect of the Primary Bank Facility whether or not permitted by
paragraphs (a) - (j) of this Section 10.6), it will make or cause to be made
effective provision whereby the Notes will be secured equally and ratably with
any and all other obligations thereby secured, such security to be pursuant to
agreements reasonably satisfactory to the Required Holders (including
intercreditor arrangements providing for the pari passu treatment of the Notes
and all such secured Debt) and, in any such case, the Notes shall have the
benefit, to the fullest extent that, and with such priority as, the holders of
the Notes may be entitled under applicable law, of an equitable Lien on such
property. For the avoidance of doubt, the Company acknowledges that it will not,
and will not permit any Subsidiary to, secure or grant any Liens in respect of
the Primary Bank Facility, unless an equal and ratable Lien is granted in
respect of the Notes.

         10.7.    SALE OF ASSETS.

                  (a) SALE OF ASSETS. The Company will not, and will not permit
         any of its Subsidiaries to, make any Transfer, PROVIDED that the
         foregoing restriction does not apply to a Transfer if:

                           (i) the property that is the subject of such Transfer
                  constitutes either (A) inventory held for sale, or (B)
                  equipment, fixtures, supplies or materials no longer required,
                  in the opinion of the Company or such Subsidiary, in the
                  operation of the business of the Company or such Subsidiary or
                  that is obsolete, and, in the case of any Transfer described
                  in clause (A) or clause (B), such Transfer is in the ordinary
                  course of business (an "ORDINARY COURSE TRANSFER");

                                       28
<PAGE>

                           (ii) such Transfer is from a Subsidiary to the
                  Company or a Wholly-Owned Subsidiary, so long as immediately
                  before and immediately after the consummation of such
                  transaction, and after giving effect thereto, no Default or
                  Event of Default exists or would exist (each such Transfer,
                  collectively with any Ordinary Course Transfers, "EXCLUDED
                  TRANSFERS"); or

                           (iii) such Transfer is a lease of the assets of the
                  Company or any Subsidiary of the Company to any joint venture
                  entity, of which the Company or any Subsidiary of the Company
                  holds an ownership interest and shares in the earnings;
                  PROVIDED that the terms of any such lease and the division of
                  the joint venture's earnings, when viewed as a whole, can be
                  reasonably expected to generate the same or greater book
                  earnings and cash flow for the Company or Subsidiary of the
                  Company as would be generated absent such lease.

                  (b) DEBT PREPAYMENT APPLICATIONS AND REINVESTED TRANSFERS.

                           (i) Notwithstanding the provisions of Section
                  10.7(a), the Company or any Subsidiary may Transfer any of its
                  properties at the Fair Market Value thereof; PROVIDED that

                                    (A) either (1) such Transfer is not an
                           Excluded Transfer and does not involve a Substantial
                           Portion of the property of the Company and its
                           Subsidiaries, or, (2) concurrently with the making of
                           such Transfer the Net Proceeds Amount with respect to
                           such Transfer (the "DESIGNATED PORTION") is either
                           (x) applied to the acquisition by the Company or the
                           Subsidiary making such Transfer of assets of a nature
                           similar to, and of at least an equivalent value of
                           the assets which were the subject of such Transfer,
                           or is committed to be applied to such acquisition
                           within one year of the date of such Transfer (a
                           "REINVESTED TRANSFER"), or (y) applied to a Debt
                           Prepayment Application with respect to such Transfer,
                           in either case hereof, within one year of the
                           consummation of such Transfer, as specified in an
                           Officer's Certificate delivered to each holder of
                           Notes prior to, or contemporaneously with, the
                           consummation of such Transfer; and

                                    (B) immediately after giving effect to such
                           Transfer (1) no Default or Event of Default shall
                           exist and (2) the Company is able to incur at least
                           $1.00 of additional Funded Debt under the provisions
                           of Section 10.3 and Section 10.4 hereof and at least
                           $1.00 of additional Priority Debt under the
                           provisions of Section 10.5 hereof.

                           (ii) If, notwithstanding the certificate referred to
                  in the foregoing clause 10.7(b)(i)(A), the Company shall fail
                  to apply the entire amount of the Designated Portion as
                  specified in such certificate within the period stated in
                  Section 10.7(b)(i), an Event of Default shall be deemed to
                  have existed as of the expiration of such period and shall be
                  deemed to be continuing.

                                       29
<PAGE>

                  (c) CERTAIN DEFINITIONS. The following terms have the
         following meanings:

                           (i) "DEBT PREPAYMENT APPLICATION" means, with respect
                  to any Transfer by the Company or any Subsidiary, the
                  application by the Company or such Subsidiary of cash in an
                  amount equal to the Net Proceeds Amount with respect to such
                  Transfer to pay the outstanding principal of all Funded Debt
                  of the Company or such Subsidiary (other than Funded Debt
                  owing to any of the Subsidiaries or any Affiliate and Funded
                  Debt in respect of any revolving credit or similar facility
                  providing the Company or such Subsidiary with the right to
                  obtain loans or other extensions of credit from time to time,
                  except to the extent that in connection with such payment of
                  Funded Debt, the availability of loans or other extensions of
                  credit under such credit facility is permanently reduced by an
                  amount not less than the amount of such proceeds applied to
                  the payment of such Funded Debt), PROVIDED that in the course
                  of making such application the Company shall offer to prepay
                  each outstanding Note in a principal amount that equals the
                  Ratable Portion for such Note PLUS interest on all such Notes
                  accrued to the date of such payment. The Company will give
                  each holder of Notes written notice of such offered prepayment
                  not less than ten (10) Business Days and not more than sixty
                  (60) days prior to the date fixed for such prepayment,
                  specifying such prepayment date, the aggregate principal
                  amount of the Notes to be prepaid on such date and the Ratable
                  Portion payable with respect to each such Note. A holder of
                  Notes may accept or reject such offer to prepay by causing a
                  notice of such acceptance or rejection to be delivered to the
                  Company at least two (2) Business Days prior to the prepayment
                  date specified by the Company in such offer. If a holder of
                  Notes has not responded to such offer by a date which is at
                  least two (2) Business Days prior to such specified prepayment
                  date, such holder shall be deemed to have rejected such offer
                  of prepayment. If any holder of a Note rejects or is deemed to
                  have rejected such offer of prepayment, then, for purposes of
                  determining the extent to which any Net Proceeds Amount has
                  been applied to a Debt Prepayment Application, the Company
                  nevertheless will be deemed to have paid Funded Debt in an
                  amount equal to the Ratable Portion for such Note.

                           As used in this definition,

                           "RATABLE PORTION" means, for any Note, an amount
                  equal to the product of

                                    (a) the Net Proceeds Amount (or any portion
                           thereof) being so offered to be applied to the
                           payment of Funded Debt, MULTIPLIED BY

                                    (b) a fraction the numerator of which is the
                           outstanding principal amount of such Note and the
                           denominator of which is the aggregate outstanding
                           principal amount of Funded Debt of the Company and
                           its Subsidiaries, after eliminating all offsetting
                           debits and credits between the Company and its
                           Subsidiaries and all other items required to be
                           eliminated in the course of the

                                       30
<PAGE>

                           preparation of consolidated financial statements of
                           the Company and its Subsidiaries in accordance with
                           GAAP.

                           (ii) "DISPOSITION VALUE" means, at any time, with
                  respect to any Transfer,

                                    (A) in the case of property that does not
                           constitute capital stock of or other ownership
                           interests in any Subsidiary of the Company, the book
                           value thereof, valued at the time of such Transfer in
                           good faith by the board of directors of the Company,
                           and

                                    (B) in the case of property that constitutes
                           capital stock of or other ownership interests in any
                           Subsidiary of the Company, an amount equal to that
                           percentage of the book value of the assets of the
                           Subsidiary that issued such capital stock or other
                           ownership interests as is equal to the percentage
                           that the book value that such capital stock or other
                           ownership interests represents of the book value of
                           all of the outstanding capital stock of or other
                           ownership interests in such Subsidiary (assuming, in
                           making such calculations, that all securities
                           convertible into such capital stock or other
                           ownership interests are so converted and giving full
                           effect to all transactions that would occur or be
                           required in connection with such conversion),
                           determined as of time of such Transfer in good faith
                           by the board of directors of the Company.

                           (iii) "NET PROCEEDS AMOUNT" means, with respect to
                  any Transfer of any property by any Person, an amount equal to
                  the difference of

                                    (a) the aggregate amount of the
                           consideration (valued at the Fair Market Value of
                           such consideration at the time of the consummation of
                           such Transfer) received by such Person in respect of
                           such Transfer, MINUS

                                    (b) all ordinary and reasonable
                           out-of-pocket costs and expenses actually incurred by
                           such Person in connection with such Transfer and any
                           income taxes fairly attributable to such Transfer.

                           (iv) "SUBSTANTIAL PORTION" means, at any time, any
                  property subject to a Transfer if the Disposition Value of
                  such property, when added to the Disposition Value of all
                  other property of the Company and its Subsidiaries that shall
                  have been the subject of a Transfer (other than an Excluded
                  Transfer and subject, with respect to both such property and
                  all such other property, to the provisions of Section 10.7(b))
                  during the then current fiscal year of the Company, exceeds an
                  amount equal to 25% of Consolidated Total Assets as reflected
                  (or as would be reflected) in the consolidated balance sheet
                  of the Company for the fiscal year of the Company then most
                  recently ended.

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<PAGE>

                           (iv) "TRANSFER" means, with respect to any Person,
                  any transaction in which such Person sells, conveys, transfers
                  or leases (as lessor) any of its property, including, without
                  limitation, capital stock of or other ownership interests in,
                  any other Person.

         10.8.    LINE OF BUSINESS.

         The Company will not, and will not permit any Subsidiary to, engage to
any Material extent in any business activity or operations other than operations
or activities, (a) in or reasonably related to the agriculture industry, (ii) in
the food industry or (iii) in which the Company and its Subsidiaries are
otherwise engaged on the date hereof as described in the Memorandum or
businesses reasonably related thereto or in furtherance thereof.

         10.9.    SUBSIDIARY DISTRIBUTION RESTRICTIONS.

         The Company covenants that it will not, and will not permit any
Subsidiary (other than NCRA) of the Company to, enter into, or be otherwise
subject to, any contract or agreement (including its certificate of
incorporation) which limits the amount of, or otherwise imposes restrictions on
the payment of, Distributions by any Subsidiary of the Company.

         10.10.   SUBSIDIARY PREFERRED STOCK.

         The Company covenants that it will not permit any Subsidiary of the
Company to issue or permit to be outstanding any class of capital stock which
has priority over any other class of capital stock of such Subsidiary as to
Distributions or in liquidation.

         10.11.   ISSUANCE OF STOCK BY SUBSIDIARIES.

         The Company covenants that it will not permit any Subsidiary of the
Company to issue, sell or otherwise dispose of any shares of any class of its
stock (either directly or indirectly by the issuance of rights or options for,
or securities convertible into, such shares) except to the Company or another
Subsidiary of the Company.

11.      EVENTS OF DEFAULT.

         An "EVENT OF DEFAULT" shall exist if any of the following conditions or
events shall occur and be continuing:

                  (a) the Company defaults in the payment of any principal or
         Make-Whole Amount, if any, on any Note when the same becomes due and
         payable, whether at maturity or at a date fixed for prepayment or by
         declaration or otherwise; or

                  (b) the Company defaults in the payment of any interest on any
         Note for more than five (5) Business Days after the same becomes due
         and payable; or

                  (c) the Company defaults in the performance of or compliance
         with any term contained in any of Section 7.1(d), Section 8.2 (other
         than any payment default occurring under Sections 11(a) and/or 11(b))
         or Section 10 (other than Section 10.8) hereof; or

                                       32
<PAGE>

                  (d) the Company defaults in the performance of or compliance
         with any term contained herein (other than those referred to in
         paragraphs (a), (b) and (c) of this Section 11) and such default is not
         remedied within 30 days after the earlier of (i) a Responsible Officer
         obtaining actual knowledge of such default and (ii) the Company
         receiving written notice of such default from any holder of a Note (any
         such written notice to be identified as a "notice of default" and to
         refer specifically to this paragraph (d) of Section 11); or

                  (e) any representation or warranty made in writing by or on
         behalf of the Company or by any officer of the Company in this
         Agreement or in any writing furnished in connection with the
         transactions contemplated hereby proves to have been false or incorrect
         in any material respect on the date as of which made; or

                  (f) the Company or any Subsidiary is in default (as principal
         or as guarantor or other surety) in the payment of any principal of or
         premium or make-whole amount or interest on any Debt that is
         outstanding in an aggregate principal amount of at least $10,000,000
         beyond any period of grace provided with respect thereto, or (ii) the
         Company or any Subsidiary is in default in the performance of or
         compliance with any agreement, term or condition contained in any
         instrument or agreement evidencing any Debt in an aggregate outstanding
         principal amount of at least $10,000,000 or of any mortgage, indenture
         or other agreement relating thereto or any other condition exists, and
         as a consequence of such default or condition such Debt has become, or
         has been declared (or one or more Persons are entitled to declare such
         Debt to be) due and payable before its stated maturity or before its
         regularly scheduled dates of payment, or (iii) as a consequence of the
         occurrence or continuation of any event or condition (other than the
         passage of time or the right of the holder of Debt to convert such Debt
         into equity interests), (x) the Company or any Subsidiary has become
         obligated to purchase or repay Debt before its regular maturity or
         before its regularly scheduled dates of payment in an aggregate
         outstanding principal amount of at least $10,000,000, or (y) one or
         more Persons have the right to require the Company or any Subsidiary so
         to purchase or repay such Debt; or

                  (g) the Company or any Subsidiary (i) is generally not paying,
         or admits in writing its inability to pay, its debts as they become
         due, (ii) files, or consents by answer or otherwise to the filing
         against it of, a petition for relief or reorganization or arrangement
         or any other petition in bankruptcy, for liquidation or to take
         advantage of any bankruptcy, insolvency, reorganization, moratorium or
         other similar law of any jurisdiction, (iii) makes an assignment for
         the benefit of its creditors, (iv) consents to the appointment of a
         custodian, receiver, trustee or other officer with similar powers with
         respect to it or with respect to any substantial part of its property,
         (v) is adjudicated as insolvent or to be liquidated, or (vi) takes
         corporate action for the purpose of any of the foregoing; or

                  (h) a court or Governmental Authority of competent
         jurisdiction enters an order appointing, without consent by the Company
         or any of its Subsidiaries, a custodian, receiver, trustee or other
         officer with similar powers with respect to it or with respect to any
         substantial part of its property, or constituting an order for relief
         or approving a

                                       33
<PAGE>

         petition for relief or reorganization or any other petition in
         bankruptcy or for liquidation or to take advantage of any bankruptcy or
         insolvency law of any jurisdiction, or ordering the dissolution,
         winding-up or liquidation of the Company or any of its Subsidiaries, or
         any such petition shall be filed against the Company or any of its
         Subsidiaries and such petition shall not be dismissed within 60 days;
         or

                  (i) a final judgment or judgments for the payment of money
         aggregating in excess of $5,000,000 are rendered against one or more of
         the Company and its Subsidiaries and which judgments are not, within 45
         days after entry thereof, bonded, discharged or stayed pending appeal,
         or are not discharged within 45 days after the expiration of such stay;
         or

                  (j) if (i) any Plan shall fail to satisfy the minimum funding
         standards of ERISA or the Code for any plan year or part thereof or a
         waiver of such standards or extension of any amortization period is
         sought or granted under section 412 of the Code, (ii) a notice of
         intent to terminate any Plan shall have been or is reasonably expected
         to be filed with the PBGC or the PBGC shall have instituted proceedings
         under ERISA section 4042 to terminate or appoint a trustee to
         administer any Plan or the PBGC shall have notified the Company or any
         ERISA Affiliate that a Plan may become a subject of any such
         proceedings, (iii) the aggregate "amount of unfunded benefit
         liabilities" (within the meaning of section 4001(a)(18) of ERISA) under
         all Plans, determined in accordance with Title IV of ERISA, shall
         exceed five percent (5%) of Consolidated Net Worth for any period of
         ten (10) consecutive calendar days or more, (iv) the Company or any
         ERISA Affiliate shall have incurred or is reasonably expected to incur
         any liability pursuant to Title I or IV of ERISA or the penalty or
         excise tax provisions of the Code relating to employee benefit plans,
         (v) the Company or any ERISA Affiliate withdraws from any Multiemployer
         Plan, or (vi) the Company or any Subsidiary establishes or amends any
         employee welfare benefit plan that provides post-employment welfare
         benefits in a manner that would increase the liability of the Company
         or any Subsidiary thereunder; and any such event or events described in
         clauses (i) through (vi) above, either individually or together with
         any other such event or events, could reasonably be expected to have a
         Material Adverse Effect.

As used in Section 11(j), the terms "EMPLOYEE BENEFIT PLAN" and "EMPLOYEE
WELFARE BENEFIT PLAN" shall have the respective meanings assigned to such terms
in Section 3 of ERISA.

12.      REMEDIES ON DEFAULT, ETC.

         12.1.    ACCELERATION.

                  (a) If an Event of Default with respect to the Company
         described in paragraph (g) or (h) of Section 11 (other than an Event of
         Default described in clause (i) of paragraph (g) or described in clause
         (vi) of paragraph (g) by virtue of the fact that such clause
         encompasses clause (i) of paragraph (g)) has occurred, all the Notes
         then outstanding shall automatically become immediately due and
         payable.

                                       34
<PAGE>

                  (b) If any other Event of Default has occurred and is
         continuing, any holder or holders of more than 66-2/3% in principal
         amount of the Notes at the time outstanding may at any time at its or
         their option, by notice or notices to the Company, declare all the
         Notes then outstanding to be immediately due and payable.

                  (c) If any Event of Default described in paragraph (a) or (b)
         of Section 11 has occurred and is continuing, any holder or holders of
         Notes at the time outstanding affected by such Event of Default may at
         any time, at its or their option, by notice or notices to the Company,
         declare all the Notes held by it or them to be immediately due and
         payable.

         Upon any Notes becoming due and payable under this Section 12.1,
whether automatically or by declaration, such Notes will forthwith mature and
the entire unpaid principal amount of such Notes, plus (x) all accrued and
unpaid interest thereon and (y) the Make-Whole Amount determined in respect of
such principal amount (to the full extent permitted by applicable law), shall
all be immediately due and payable, in each and every case without presentment,
demand, protest or further notice, all of which are hereby waived. The Company
acknowledges, and the parties hereto agree, that each holder of a Note has the
right to maintain its investment in the Notes free from repayment by the Company
(except as herein specifically provided for) and that the provision for payment
of a Make-Whole Amount by the Company in the event that the Notes are prepaid or
are accelerated as a result of an Event of Default, is intended to provide
compensation for the deprivation of such right under such circumstances.

         12.2.    OTHER REMEDIES.

         If any Default or Event of Default has occurred and is continuing, and
irrespective of whether any Notes have become or have been declared immediately
due and payable under Section 12.1, the holder of any Note at the time
outstanding may proceed to protect and enforce the rights of such holder by an
action at law, suit in equity or other appropriate proceeding, whether for the
specific performance of any agreement contained herein or in any Financing
Document, or for an injunction against a violation of any of the terms hereof or
thereof, or in aid of the exercise of any power granted hereby or thereby or by
law or otherwise.

         12.3.    RESCISSION.

         At any time after any Notes have been declared due and payable pursuant
to clause (b) or (c) of Section 12.1, the Required Holders may, by written
notice to the Company, rescind and annul any such declaration and its
consequences if (a) the Company has paid all overdue interest on the Notes, all
principal of and Make-Whole Amount, if any, on any Notes that are due and
payable and are unpaid other than by reason of such declaration, and all
interest on such overdue principal and Make-Whole Amount, if any, and (to the
extent permitted by applicable law) any overdue interest in respect of the
Notes, at the Default Rate, (b) all Events of Default and Defaults, other than
non-payment of amounts that have become due solely by reason of such
declaration, have been cured or have been waived pursuant to Section 17, and (c)
no judgment or decree has been entered for the payment of any monies due
pursuant hereto or to the Notes. No rescission and annulment under this Section
12.3 will extend to or affect any subsequent Event of Default or Default or
impair any right consequent thereon.

                                       35
<PAGE>

         12.4.    NO WAIVERS OR ELECTION OF REMEDIES, EXPENSES, ETC.

         No course of dealing and no delay on the part of any holder of any Note
in exercising any right, power or remedy shall operate as a waiver thereof or
otherwise prejudice such holder's rights, powers or remedies. No right, power or
remedy conferred by any Financing Document upon any holder of any Note shall be
exclusive of any other right, power or remedy referred to herein or therein or
now or hereafter available at law, in equity, by statute or otherwise. Without
limiting the obligations of the Company under Section 15, the Company will pay
to the holder of each Note on demand such further amount as shall be sufficient
to cover all costs and expenses of such holder incurred in any enforcement or
collection under this Section 12, including, without limitation, reasonable
attorneys' fees, expenses and disbursements.

13.      REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

         13.1.    REGISTRATION OF NOTES.

         The Company shall keep at its principal executive office a register for
the registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and address
of each transferee of one or more Notes shall be registered in such register.
Prior to due presentment for registration of transfer, the Person in whose name
any Note shall be registered shall be deemed and treated as the owner and holder
thereof for all purposes hereof, and the Company shall not be affected by any
notice or knowledge to the contrary. The Company shall give to any holder of a
Note that is an Institutional Investor promptly upon request therefor, a
complete and correct copy of the names and addresses of all registered holders
of Notes.

         13.2.    TRANSFER AND EXCHANGE OF NOTES.

         Upon surrender of any Note at the principal executive office of the
Company for registration of transfer or exchange (and in the case of a surrender
for registration of transfer, duly endorsed or accompanied by a written
instrument of transfer duly executed by the registered holder of such Note or
his attorney duly authorized in writing and accompanied by the address for
notices of each transferee of such Note or part thereof), the Company shall
execute and deliver, at the Company's expense (except as provided below), one or
more new Notes (as requested by the holder thereof) in exchange therefor, in an
aggregate principal amount equal to the unpaid principal amount of the
surrendered Note. Each such new Note shall be payable to such Person as such
holder may request and shall be substantially in the form of Exhibit 1A or
Exhibit 1B, as applicable. Each such new Note shall be dated and bear interest
from the date to which interest shall have been paid on the surrendered Note or
dated the date of the surrendered Note if no interest shall have been paid
thereon. The Company may require payment of a sum sufficient to cover any stamp
tax or governmental charge imposed in respect of any such transfer of Notes.
Notes shall not be transferred in denominations of less than $500,000, PROVIDED
that if necessary to enable the registration of transfer by a holder of its
entire holding of Notes, one Note may be in a denomination of less than
$500,000. Any transferee, by its acceptance of a Note registered in its name (or
the name of its nominee), shall be deemed to have made the representation set
forth in Section 6.2.

                                       36
<PAGE>

         13.3.    REPLACEMENT OF NOTES.

         Upon receipt by the Company of evidence reasonably satisfactory to it
of the ownership of and the loss, theft, destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor, notice from
such Institutional Investor of such ownership and such loss, theft, destruction
or mutilation), and

                  (a) in the case of loss, theft or destruction, of indemnity
         reasonably satisfactory to it (PROVIDED that if the holder of such Note
         is, or is a nominee for, an original Purchaser or a Qualified
         Institutional Buyer, such Person's own unsecured agreement of indemnity
         shall be deemed to be satisfactory), or

                  (b) in the case of mutilation, upon surrender and cancellation
         thereof,

the Company at its own expense shall execute and deliver, in lieu thereof, a new
Note, dated and bearing interest from the date to which interest shall have been
paid on such lost, stolen, destroyed or mutilated Note or dated the date of such
lost, stolen, destroyed or mutilated Note if no interest shall have been paid
thereon.

14.      PAYMENTS ON NOTES.

         So long as you or your nominee shall be the holder of any Note, the
Company will pay all sums becoming due on such Note for principal, Make-Whole
Amount, if any, and interest by the method and at the address specified for such
purpose below your name in Schedule A, or by such other method or at such other
address as you shall have from time to time specified to the Company in writing
for such purpose, without the presentation or surrender of such Note or the
making of any notation thereon, except that upon written request of the Company
made concurrently with or reasonably promptly after payment or prepayment in
full of any Note, you shall surrender such Note for cancellation, reasonably
promptly after any such request, to the Company at its principal executive
office. Prior to any sale or other disposition of any Note held by you or your
nominee you will, at your election, either endorse thereon the amount of
principal paid thereon and the last date to which interest has been paid thereon
or surrender such Note to the Company in exchange for a new Note or Notes
pursuant to Section 13.2. The Company will afford the benefits of this Section
14 to any Qualified Institutional Buyer or Institutional Investor that is the
direct or indirect transferee of any Note purchased by you under this Agreement
and that has made the same agreement relating to such Note as you have made in
this Section 14.

15.      EXPENSES, ETC.

         15.1.    TRANSACTION EXPENSES.

         Whether or not the transactions contemplated hereby are consummated,
the Company will pay all costs and expenses (including reasonable attorneys'
fees of a special counsel and, if reasonably required, local or other counsel)
incurred by you and each Other Purchaser or holder of a Note in connection with
such transactions and in connection with any amendments, waivers or consents
under or in respect of the Financing Documents (whether or not such amendment,
waiver or consent becomes effective), including, without limitation: (a) the
costs and expenses incurred in enforcing or defending (or determining whether or
how to enforce or defend) any

                                       37
<PAGE>

rights under the Financing Documents or in responding to any subpoena or other
legal process or informal investigative demand issued in connection with the
Financing Documents, or by reason of being a holder of any Note, and (b) the
costs and expenses, including financial advisors' fees, incurred in connection
with the insolvency or bankruptcy of the Company or any Subsidiary or in
connection with any work-out or restructuring of the transactions contemplated
hereby and by the Financing Documents. The Company will pay, and will save you
and each other holder of a Note harmless from, all claims in respect of any
fees, costs or expenses if any, of brokers and finders (other than those
retained by you).

         15.2.    SURVIVAL.

         The obligations of the Company under this Section 15 will survive the
payment or transfer of any Note, the enforcement, amendment or waiver of any
provision of this Agreement or the Notes, and the termination of this Agreement.

16.      SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

         All representations and warranties contained in any Financing Document
shall survive the execution and delivery of this Agreement and the Notes, the
purchase or transfer by you of any Note or portion thereof or interest therein
and the payment of any Note, and may be relied upon by any subsequent holder of
a Note, regardless of any investigation made at any time by or on behalf of you
or any other holder of a Note. All statements contained in any certificate or
other instrument delivered by or on behalf of the Company pursuant to this
Agreement shall be deemed representations and warranties of the Company under
any Financing Document. Subject to the preceding sentence, the Financing
Documents embody the entire agreement and understanding between you and the
Company and supersede all prior agreements and understandings relating to the
subject matter hereof.

17.      AMENDMENT AND WAIVER.

         17.1.    REQUIREMENTS.

         This Agreement and the Notes may be amended, and the observance of any
term hereof or of the Notes may be waived (either retroactively or
prospectively), with (and only with) the written consent of the Company and the
Required Holders, except that (a) no amendment or waiver of any of the
provisions of Sections 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it
is used therein), will be effective as to you unless consented to by you in
writing, and (b) no such amendment or waiver may, without the written consent of
the holder of each Note at the time outstanding affected thereby, (i) subject to
the provisions of Section 12 relating to acceleration or rescission, change the
amount or time of any prepayment or payment of principal of, or reduce the rate
or change the time of payment or method of computation of interest or of the
Make-Whole Amount on, the Notes, (ii) change the percentage of the principal
amount of the Notes the holders of which are required to consent to any such
amendment or waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or
20.

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<PAGE>

         17.2.    SOLICITATION OF HOLDERS OF NOTES.

                  (a) SOLICITATION. The Company will provide each holder of the
         Notes (irrespective of the amount of Notes then owned by it) with
         sufficient information, sufficiently far in advance of the date a
         decision is required, to enable such holder to make an informed and
         considered decision with respect to any proposed amendment, waiver or
         consent in respect of any of the provisions hereof or of the Notes. The
         Company will deliver executed or true and correct copies of each
         amendment, waiver or consent effected pursuant to the provisions of
         this Section 17 to each holder of outstanding Notes promptly following
         the date on which it is executed and delivered by, or receives the
         consent or approval of, the requisite holders of Notes.

                  (b) PAYMENT. The Company will not directly or indirectly pay
         or cause to be paid any remuneration, whether by way of supplemental or
         additional interest, fee or otherwise, or grant any security, to any
         holder of Notes as consideration for or as an inducement to the
         entering into by any holder of Notes of any waiver or amendment of any
         of the terms and provisions hereof unless such remuneration is
         concurrently paid, or security is concurrently granted, on the same
         terms, ratably to each holder of Notes then outstanding even if such
         holder did not consent to such waiver or amendment.

         17.3.    BINDING EFFECT, ETC.

         Any amendment or waiver consented to as provided in this Section 17
applies equally to all holders of Notes and is binding upon them and upon each
future holder of any Note and upon the Company without regard to whether such
Note has been marked to indicate such amendment or waiver. No such amendment or
waiver will extend to or affect any obligation, covenant, agreement, Default or
Event of Default not expressly amended or waived or impair any right consequent
thereon. No course of dealing between the Company and the holder of any Note nor
any delay in exercising any rights hereunder or under any Note shall operate as
a waiver of any rights of any holder of such Note. As used herein, the term
"THIS AGREEMENT" and references thereto shall mean this Agreement as it may from
time to time be amended or supplemented.

         17.4.    NOTES HELD BY COMPANY, ETC.

         Solely for the purpose of determining whether the holders of the
requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under any
of the Financing Documents, or have directed the taking of any action provided
in any of the Financing Documents to be taken upon the direction of the holders
of a specified percentage of the aggregate principal amount of Notes then
outstanding, Notes directly or indirectly owned by the Company or any of its
Affiliates shall be deemed not to be outstanding.

         18.      NOTICES.

         All notices and communications provided for hereunder shall be in
writing and sent (a) by telecopy if the sender on the same day sends a
confirming copy of such notice by a recognized overnight delivery service
(charges prepaid), or (b) by registered or certified mail

                                       39
<PAGE>

with return receipt
requested (postage prepaid), or (c) by a recognized overnight delivery service
(with charges prepaid). Any such notice must be sent:

                           (i) if to you or your nominee, to you or it at the
                  address specified for such communications in Schedule A, or at
                  such other address as you or it shall have specified to the
                  Company in writing,

                           (ii) if to any other holder of any Note, to such
                  holder at such address as such other holder shall have
                  specified to the Company in writing, or

                           (iii) if to the Company, to the Company at its
                  address set forth at the beginning hereof to the attention of
                  John Schmitz, Executive Vice President and Chief Financial
                  Officer, or at such other address as the Company shall have
                  specified to the holder of each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

19.      REPRODUCTION OF DOCUMENTS.

         This Agreement and all documents relating thereto, including, without
limitation, (a) consents, waivers and modifications that may hereafter be
executed, (b) documents received by you at the Closing (except the Notes
themselves), and (c) financial statements, certificates and other information
previously or hereafter furnished to you, may be reproduced by you by any
photographic, photostatic, microfilm, microcard, miniature photographic or other
similar process and you may destroy any original document so reproduced. The
Company agrees and stipulates that, to the extent permitted by applicable law,
any such reproduction shall be admissible in evidence as the original itself in
any judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by you in the regular
course of business) and any enlargement, facsimile or further reproduction of
such reproduction shall likewise be admissible in evidence. This Section 19
shall not prohibit the Company or any other holder of Notes from contesting any
such reproduction to the same extent that it could contest the original, or from
introducing evidence to demonstrate the inaccuracy of any such reproduction.

20.      CONFIDENTIAL INFORMATION.

         For the purposes of this Section 20, "CONFIDENTIAL INFORMATION" means
information delivered to you by or on behalf of the Company or any Subsidiary in
connection with the transactions contemplated by or otherwise pursuant to this
Agreement that is proprietary in nature and that was clearly marked or labeled
or otherwise adequately identified when received by you as being confidential
information of the Company or such Subsidiary, PROVIDED that such term does not
include information that (a) was publicly known or otherwise known to you prior
to the time of such disclosure, (b) subsequently becomes publicly known through
no act or omission by you or any person acting on your behalf, (c) otherwise
becomes known to you other than through disclosure by the Company or any
Subsidiary or (d) constitutes financial statements delivered to you under
Section 7.1 that are otherwise publicly available. You will maintain the
confidentiality of such Confidential Information in accordance with procedures
adopted by you

                                       40
<PAGE>

in good faith to protect confidential information of third parties delivered to
you, PROVIDED that you may deliver or disclose Confidential Information to (i)
your directors, officers, employees, agents, attorneys and affiliates (to the
extent such disclosure reasonably relates to the administration of the
investment represented by your Notes), (ii) your financial advisors and other
professional advisors who agree to hold confidential the Confidential
Information substantially in accordance with the terms of this Section 20, (iii)
any other holder of any Note, (iv) any Institutional Investor to which you sell
or offer to sell such Note or any part thereof or any participation therein (if
such Person has agreed in writing prior to its receipt of such Confidential
Information to be bound by the provisions of this Section 20), (v) any Person
from which you offer to purchase any security of the Company (if such Person has
agreed in writing prior to its receipt of such Confidential Information to be
bound by the provisions of this Section 20), (vi) any federal or state
regulatory authority having jurisdiction over you, (vii) the National
Association of Insurance Commissioners or any similar organization, or any
nationally recognized rating agency that requires access to information about
your investment portfolio or (viii) any other Person to which such delivery or
disclosure may be necessary or appropriate (w) to effect compliance with any
law, rule, regulation or order applicable to you, (x) in response to any
subpoena or other legal process, (y) in connection with any litigation to which
you are a party or (z) if an Event of Default has occurred and is continuing, to
the extent you may reasonably determine such delivery and disclosure to be
necessary or appropriate in the enforcement or for the protection of the rights
and remedies under the Financing Documents. Each holder of a Note, by its
acceptance of a Note, will be deemed to have agreed to be bound by and to be
entitled to the benefits of this Section 20 as though it were a party to this
Agreement. On reasonable request by the Company in connection with the delivery
to any holder of a Note of information required to be delivered to such holder
under this Agreement or requested by such holder (other than a holder that is a
party to this Agreement or its nominee), such holder will enter into an
agreement with the Company embodying the provisions of this Section 20.

21.      SUBSTITUTION OF PURCHASER.

         You shall have the right to substitute any one of your Affiliates as
the purchaser of the Notes that you have agreed to purchase hereunder, by
written notice to the Company, which notice shall be signed by both you and such
Affiliate, shall contain such Affiliate's agreement to be bound by this
Agreement and shall contain a confirmation by such Affiliate of the accuracy
with respect to it of the representations set forth in Section 6. Upon receipt
of such notice, wherever the word "you" is used in this Agreement (other than in
this Section 21), such word shall be deemed to refer to such Affiliate in lieu
of you. In the event that such Affiliate is so substituted as a purchaser
hereunder and such Affiliate thereafter transfers to you all of the Notes then
held by such Affiliate, upon receipt by the Company of notice of such transfer,
wherever the word "you" is used in this Agreement (other than in this Section
21), such word shall no longer be deemed to refer to such Affiliate, but shall
refer to you, and you shall have all the rights of an original holder of the
Notes under this Agreement.

                                       41
<PAGE>

22.      MISCELLANEOUS.

         22.1.    SUCCESSORS AND ASSIGNS.

         All covenants and other agreements contained in this Agreement by or on
behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including, without limitation, any subsequent
holder of a Note) whether so expressed or not.

         22.2.    PAYMENTS DUE ON NON-BUSINESS DAYS.

         Anything in this Agreement or the Notes to the contrary
notwithstanding, any payment of principal of or Make-Whole Amount or interest on
any Note that is due on a date other than a Business Day shall be made on the
next succeeding Business Day without including the additional days elapsed in
the computation of the interest payable on such next succeeding Business Day.

         22.3.    SEVERABILITY.

         Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.

         22.4.    CONSTRUCTION.

         Each covenant contained herein shall be construed (absent express
provision to the contrary) as being independent of each other covenant contained
herein, so that compliance with any one covenant shall not (absent such an
express contrary provision) be deemed to excuse compliance with any other
covenant. Where any provision herein refers to action to be taken by any Person,
or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person.

         22.5.    COUNTERPARTS.

         This Agreement may be executed in any number of counterparts, each of
which shall be an original but all of which together shall constitute one
instrument. Each counterpart may consist of a number of copies hereof, each
signed by less than all, but together signed by all, of the parties hereto.

         22.6.    GOVERNING LAW.

         THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND
THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW
YORK, EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD
REQUIRE THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

                                       42
<PAGE>

         If you are in agreement with the foregoing, please sign the form of
agreement on the accompanying counterpart of this Agreement and return it to the
Company, whereupon the foregoing shall become a binding agreement between you
and the Company.

                                               Very truly yours,

                                               CENEX HARVEST STATES COOPERATIVES

                                               By:  ____________________________
                                               Name:
                                               Title:

The foregoing is hereby agreed to
as of the date thereof.

[PURCHASER]

By:  ___________________________
Name:
Title:

                  [Signature Page to Note Purchase Agreement]
<PAGE>

                                   SCHEDULE A

                       INFORMATION RELATING TO PURCHASERS

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-1; $21,500,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  The Bank of New York
                                              New York, NY ABA # 021-000-018
                                              Acct. # 890-0304-391

                                              Re:      (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       The Prudential Insurance Company of America
                                              c/o Investment Operations Group
                                              Gateway Center Two, 10th Floor
                                              100 Mulberry Street
                                              Newark, NJ 07102-4077
                                              Attn:    Manager, Billings and Collections

                                              Fax:     973-802-8764

                                              with a copy to:
                                              --------------

                                              The Prudential Insurance Company of America
                                              c/o Prudential Capital Group
                                              Two Prudential Plaza
                                              180 North Stetson Street, Suite 5600
                                              Chicago, IL 60601
                                              Attn:    Managing Director

                                              Tel:     312-540-0931
                                              Fax:     312-540-4222

                                              with receipt of telephonic prepayment notices to:
                                              ------------------------------------------------

                                              Manager, Trade Management Group

                                              Tel:     973-802-6009
                                              Fax:     800-224-2278
--------------------------------------------- ---------------------------------------------------------------------------
</TABLE>

                                  Schedule A-1
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Address for All Other Notices                 The Prudential Insurance Company of America
                                              c/o Prudential Capital Group
                                              Two Prudential Plaza
                                              180 North Stetson Street, Suite 5600
                                              Chicago, IL 60601
                                              Attn:    Managing Director

                                              Tel:     312-540-0931
                                              Fax:     312-540-4222
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

                                              By: ________________________________
                                              Name:
                                              Title: Vice President
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             The Prudential Insurance Company of America
                                              c/o Prudential Capital Group
                                              Two Prudential Plaza
                                              180 North Stetson Street, Suite 5600
                                              Chicago, IL 60601
                                              Attn:    Wiley S. Adams
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     22-1211670
============================================= ===========================================================================
</TABLE>

                                  Schedule A-2
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                PRUCO LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
PURCHASER NAME                                PRUCO LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Name in Which Note is Registered              PRUCO LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-2; $1,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  The Bank of New York
                                              New York, NY ABA # 021-000-018
                                              Acct. # 890-0304-421

                                              Re:      (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Pruco Life Insurance Company
                                              c/o Investment Operations Group
                                              Gateway Center Two, 10th Floor
                                              100 Mulberry Street
                                              Newark, NJ 07102-4077
                                              Attn:    Manager, Billings and Collections

                                              Fax:     973-802-8764

                                              with a copy to:
                                              --------------

                                              Pruco Life Insurance Company
                                              c/o Prudential Capital Group
                                              Two Prudential Plaza
                                              180 North Stetson Street, Suite 5600
                                              Chicago, IL 60601
                                              Attn:    Managing Director

                                              Tel:     312-540-0931
                                              Fax:     312-540-4222

                                              with receipt of telephonic prepayment notices to:
                                              ------------------------------------------------

                                              Manager, Trade Management Group

                                              Tel:     973-802-6009
                                              Fax:     800-224-2278
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Pruco Life Insurance Company
                                              c/o Prudential Capital Group
                                              Two Prudential Plaza
                                              180 North Stetson Street, Suite 5600
                                              Chicago, IL 60601
                                              Attn:    Managing Director

                                              Tel:     312-540-0931
                                              Fax:     312-540-4222
============================================= ===========================================================================
</TABLE>

                                  Schedule A-3
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                PRUCO LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Other Instructions                            PRUCO LIFE INSURANCE COMPANY

                                              By: ________________________________
                                              Name:
                                              Title: Vice President
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Pruco Life Insurance Company
                                              c/o Prudential Capital Group
                                              Two Prudential Plaza
                                              180 North Stetson Street, Suite 5600
                                              Chicago, IL 60601
                                              Attn:    Wiley S. Adams
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     22-1944557
=============================================== =========================================================================
</TABLE>

                                  Schedule A-4
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                HARTFORD LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              HARTFORD LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-3; $3,750,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Chase Manhattan Bank
                                              4 New York Plaza New York, NY
                                              10004 ABA # 021-000-021 Chase
                                              NYC/Cust Acct. # 900-9-000200
                                              For further credit to G 08965 CRD

                                              Re:  Hartford  Life  Insurance  Company and  "Accompanying  information"
                                              below
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Hartford Investment Management Company
                                              c/o Portfolio Support
                                              P.O. Box 1744
                                              Hartford, CT 06144-1744

                                              Fax:   860-297-8875 / 8876
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Prudential Private Placement Investors, L.P.
                                              4 Gateway Center
                                              100 Mulberry Street
                                              Newark, NJ 07102
                                              Attn:  Albert Trank, Senior Vice President

                                              Tel:   973-802-8608
                                              Fax:   973-624-6432
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            HARTFORD LIFE INSURANCE COMPANY
                                              By:    Prudential Private Placement Investors, L.P. (as Investment Advisor)
                                              By:    Prudential Private Placement Investors, Inc. (as its General Partner)

                                              By: ________________________________
                                              Name:
                                              Title: Vice President
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Hartford Life Insurance Company
                                              c/o Prudential Capital Group
                                              Two Prudential Plaza
                                              180 North Stetson Street, Suite 5600
                                              Chicago, IL 60601
                                              Attn:  Wiley S. Adams
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     06-9774148
============================================= ===========================================================================
</TABLE>

                                  Schedule A-5
<PAGE>

<TABLE>
<CAPTION>

============================================= ===========================================================================
PURCHASER NAME                                GOLDEN AMERICAN LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              GOLDEN AMERICAN LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-4; $7,500,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  The Bank of New York
                                              New York, NY
                                              ABA # 021-000-018
                                              BNF:  IOC566 - Income Collections
                                              Attn: William Cashman

                                              Re:  Golden American Life Insurance Company (MVA Acct.), Acct. # 136374,
                                                   and "Accompanying information" below
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:          CENEX HARVEST STATES COOPERATIVES

                                              Description of Security: 4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                     15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       ING Investment Management LLC
                                              5780 Powers Ferry Road, NW, Suite 300
                                              Atlanta, GA 30327-4943
                                              Attn:  Securities Accounting

                                              Fax:   770-690-4899
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Prudential Private Placement Investors, L.P.
                                              4 Gateway Center
                                              100 Mulberry Street
                                              Newark, NJ 07102
                                              Attn:  Albert Trank, Senior Vice President

                                              Tel: 973-802-8608
                                              Fax: 973-624-6432
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            GOLDEN AMERICAN LIFE INSURANCE COMPANY
                                              By:  Prudential Private Placement Investors, L.P. (as Investment Advisor)
                                              By:  Prudential Private Placement Investors, Inc. (as its General Partner)

                                              By: ________________________________
                                              Name:
                                              Title: Vice President

--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Golden American Life Insurance Company
                                              c/o Prudential Capital Group
                                              Two Prudential Plaza
                                              180 North Stetson Street, Suite 5600
                                              Chicago, IL 60601
                                              Attn:    Wiley S. Adams

--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     41-0991508
============================================= ===========================================================================
</TABLE>

                                  Schedule A-6
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              SALKELD & CO.

--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-5; $11,250,000

--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Bankers Trust Company
                                              14 Wall Street
                                              New York, NY 10005
                                              SWIFT Code:  BKTR US 33
                                              ABA # 021-001-033
                                              Acct. # 99-911-145

                                              FCC # 087738/GECA LTC - PRU

                                              Re:   (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:          CENEX HARVEST STATES COOPERATIVES

                                              Description of Security: 4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                     15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       GE Financial Assurance
                                              Account:  GECA LTC
                                              Two Union Square, 601 Union Street
                                              Seattle, WA 98101
                                              Attn: Investment Operations

                                              Fax:  203-356-4688
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Prudential Private Placement Investors, L.P.
                                              4 Gateway Center
                                              100 Mulberry Street
                                              Newark, NJ 07102
                                              Attn: Albert Trank, Senior Vice President

                                              Tel: 973-802-8608
                                              Fax: 973-624-6432
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY
                                              By:  Prudential Private Placement Investors, L.P. (as Investment Advisor)
                                              By:  Prudential Private Placement Investors, Inc. (as its General Partner)

                                              By: ________________________________
                                              Name:
                                              Title: Vice President
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             General Electric Capital Assurance Company
                                              c/o Prudential Capital Group
                                              Two Prudential Plaza
                                              180 North Stetson Street, Suite 5600
                                              Chicago, IL 60601
                                              Attn: Wiley S. Adams
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     91-6027719
============================================= ===========================================================================
</TABLE>

                                  Schedule A-7
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                THE VARIABLE ANNUITY LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              THE VARIABLE ANNUITY LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RE-1; $20,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  State Street Bank and Trust Company
                                              Boston, MA  02101
                                              ABA # 011-000-028
                                              Re:      The Variable Annuity Life Insurance Company
                                              A/C:     0125-821-9
                                              OBI = 15131# AE 6 and description of payment
                                              Fund # PA 54

                                              Re: (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:          CENEX HARVEST STATES COOPERATIVES

                                              Description of Security: 5.60% Series E Senior Notes due October 18, 2017

                                              PPN:                     15131# AE 6

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       The Variable Annuity Life Insurance Company and PA 54
                                              c/o State Street Bank Corporation
                                              801 Pennsylvania
                                              Kansas City, MO 64105
                                              Attn: Insurance Services

                                              Fax:     816-691-3619

                                              with a copy to:
                                              --------------

                                              The Variable Annuity Life Insurance Company and PA 54
                                              c/o AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-04
                                              Houston, TX  77019-2155
                                              Attn:    Private Placement Department

                                              Fax:     713-831-1072

                                              and a copy to:
                                              -------------

                                              AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-01
                                              Houston, TX  77019-2155
                                              Attn:    Legal Department - Investment Management

                                              Fax:     713-831-2328
=========================================================================================================================
</TABLE>

                                  Schedule A-8
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                THE VARIABLE ANNUITY LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Address for All Other Notices                 The Variable Annuity Life Insurance Company and PA 54
                                              c/o AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-04
                                              Houston, TX  77019-2155
                                              Attn:    Private Placement Department

                                              Fax:     713-831-1072

                                              with a copy to:
                                              --------------

                                              AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-01
                                              Houston, TX  77019-2155
                                              Attn:    Legal Department - Investment Management

                                              Fax:     713-831-2328
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            THE VARIABLE ANNUITY LIFE INSURANCE COMPANY
                                              AIG ANNUITY INSURANCE COMPANY
                                              THE FRANKLIN LIFE INSURANCE COMPANY
                                              THE UNITED STATES LIFE INSURANCE COMPANY
                                              IN THE CITY OF NEW YORK
                                              By:      AIG Global Investment Corp., investment adviser

                                                       By:___________________________________
                                                       Name:
                                                       Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             State Street Bank and Trust Company
                                              Securities Services
                                              225 Franklin Street
                                              Boston, MA  02105
                                              Attn: Ana Barnes
                                                    Receive and Deliver

                                              with a request that Ms. Barnes confirm  receipt of original  securities and
                                              ---------------------------------------------------------------------------
                                              forward a copy of same to:
                                              --------------------------

                                              Susie Hayes
                                              AIG Global Investment Corp.
                                              2929 Allen Parkway, A36-01
                                              Houston, TX 77019

                                              provide a carbon copy of the above to:
                                              -------------------------------------

                                              Ed Holmes
                                              Fax:     713-831-2328
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     74-1625348
============================================= ===========================================================================
</TABLE>

                                  Schedule A-9
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                AIG ANNUITY INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              AIG ANNUITY INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RE-2; $10,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  State Street Bank and Trust Company
                                              Boston, MA  02101
                                              ABA # 011-000-028
                                              Re:      AIG Annuity Insurance Company
                                              A/C:     7215-132-7
                                              OBI =    15131# AE 6 and description of payment
                                              Fund # WE1B

                                              Re:  (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   5.60% Series E Senior Notes due October 18, 2017

                                              PPN:                       15131# AE 6

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       AIG Annuity Insurance Company and WE1B
                                              c/o State Street Bank Corporation
                                              801 Pennsylvania
                                              Kansas City, MO  64105
                                              Attn:    Insurance Services

                                              Fax:     816-691-3619

                                              with a copy to:
                                              --------------

                                              AIG Annuity Insurance Company and WE1B
                                              c/o AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-04
                                              Houston, TX  77019-2155
                                              Attn:    Private Placement Department

                                              Fax:     713-831-1072

                                              and a copy to:
                                              -------------

                                              AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-01
                                              Houston, TX  77019-2155
                                              Attn:    Legal Department - Investment Management

                                              Fax:     713-831-2328
============================================= ===========================================================================
</TABLE>

                                 Schedule A-10
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                AIG ANNUITY INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Address for All Other Notices                 AIG Annuity Insurance Company and WE1B
                                              c/o AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-04
                                              Houston, TX  77019-2155
                                              Attn:    Private Placement Department

                                              Fax:     713-831-1072

                                              with a copy to:
                                              --------------

                                              AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-01
                                              Houston, TX  77019-2155
                                              Attn:    Legal Department - Investment Management

                                              Fax:     713-831-2328
--------------------------------------------- ---------------------------------------------------------------------------

Other Instructions                            THE VARIABLE ANNUITY LIFE INSURANCE COMPANY
                                              AIG ANNUITY INSURANCE COMPANY
                                              THE FRANKLIN LIFE INSURANCE COMPANY
                                              THE UNITED STATES LIFE INSURANCE COMPANY
                                              IN THE CITY OF NEW YORK
                                              By:      AIG Global Investment Corp., investment adviser

                                                       By:___________________________________
                                                       Name:
                                                       Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             State Street Bank and Trust Company
                                              Securities Services
                                              225 Franklin Street
                                              Boston, MA  02105
                                              Attn: Ana Barnes
                                                    Receive and Deliver

                                              with a request that Ms. Barnes confirm  receipt of original  securities and
                                              ---------------------------------------------------------------------------
                                              forward a copy of same to:
                                              --------------------------

                                              Susie Hayes
                                              AIG Global Investment Corp.
                                              2929 Allen Parkway, A36-01
                                              Houston, TX 77019

                                              provide a carbon copy of the above to:
                                              -------------------------------------

                                              Ed Holmes
                                              Fax:     713-831-2328
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     75-0770838
============================================= ===========================================================================
</TABLE>

                                 Schedule A-11
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                THE FRANKLIN LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              THE FRANKLIN LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RE-3; $10,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  State Street Bank and Trust Company
                                              Boston, MA  02101
                                              ABA # 011-000-028
                                              Re:      The Franklin Life Insurance Company
                                              A/C:     2492-440-9
                                              OBI = 15131# AE 6 and description of payment
                                              Fund # PA 37

                                              Re: (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   5.60% Series E Senior Notes due October 18, 2017

                                              PPN:                       15131# AE 6

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       The Franklin Life Insurance Company and PA 37
                                              c/o State Street Bank Corporation
                                              801 Pennsylvania
                                              Kansas City, MO  64105
                                              Attn:    Insurance Services

                                              Fax:     816-691-3619

                                              with a copy to:
                                              --------------

                                              The Franklin Life Insurance Company and PA 37
                                              c/o AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-04
                                              Houston, TX  77019-2155
                                              Attn:    Private Placement Department

                                              Fax:     713-831-1072

                                              and a copy to:
                                              -------------

                                              AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-01
                                              Houston, TX 77019-2155
                                              Attn:    Legal Department - Investment Management

                                              Fax:     713-831-2328
============================================= ===========================================================================
</TABLE>

                                 Schedule A-12
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                THE FRANKLIN LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Address for All Other Notices                 The Franklin Life Insurance Company and PA 37
                                              c/o AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-04
                                              Houston, TX  77019-2155
                                              Attn:    Private Placement Department

                                              Fax:     713-831-1072

                                              with a copy to:
                                              --------------

                                              AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-01
                                              Houston, TX 77019-2155
                                              Attn:    Legal Department - Investment Management

                                              Fax:     713-831-2328
--------------------------------------------- -------------------------------------------------------------------------
Other Instructions                            THE VARIABLE ANNUITY LIFE INSURANCE COMPANY
                                              AIG ANNUITY INSURANCE COMPANY
                                              THE FRANKLIN LIFE INSURANCE COMPANY
                                              THE UNITED STATES LIFE INSURANCE COMPANY
                                              IN THE CITY OF NEW YORK
                                              By:      AIG Global Investment Corp., investment adviser

                                                       By:___________________________________
                                                       Name:
                                                       Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             State Street Bank and Trust Company
                                              Securities Services
                                              225 Franklin Street
                                              Boston, MA  02105
                                              Attn: Ana Barnes
                                                    Receive and Deliver

                                              with a request that Ms. Barnes confirm receipt of original securities and
                                              -------------------------------------------------------------------------
                                              forward a copy of same to:
                                              --------------------------

                                              Susie Hayes
                                              AIG Global Investment Corp.
                                              2929 Allen Parkway, A36-01
                                              Houston, TX 77019

                                              provide a carbon copy of the above to:
                                              -------------------------------------

                                              Ed Holmes
                                              Fax:     713-831-2328
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     37-0281650
============================================= ===========================================================================
</TABLE>

                                 Schedule A-13
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RE-4; $5,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  State Street Bank and Trust Company
                                              Boston, MA  02101
                                              ABA # 011-000-028
                                              Re:      The United States Life Insurance Company in the City of New York
                                              A/C:     6956-534-9
                                              OBI = 15131# AE 6 and description of payment
                                              Fund # PA 77

                                              Re: (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   5.60% Series E Senior Notes due October 18, 2017

                                              PPN:                       15131# AE 6

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       The United States Life Insurance Company in the City of New York and PA 77
                                              c/o State Street Bank Corporation
                                              801 Pennsylvania
                                              Kansas City, MO  64105
                                              Attn:    Insurance Services

                                              Fax:     816-691-3619

                                              with a copy to:
                                              --------------

                                              The United States Life Insurance Company in the City of New York and PA 77
                                              c/o AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-04
                                              Houston, TX  77019-2155
                                              Attn:    Private Placement Department

                                              Fax:     713-831-1072

                                              and a copy to:
                                              -------------

                                              AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-01
                                              Houston, TX  77019-2155
                                              Attn:    Legal Department - Investment Management

                                              Fax:     713-831-2328
============================================= ===========================================================================
</TABLE>

                                 Schedule A-14
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Address for All Other Notices                 The United States Life Insurance Company in the City of New York and PA 77
                                              c/o AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-04
                                              Houston, TX  77019-2155
                                              Attn:    Private Placement Department

                                              Fax:     713-831-1072

                                              with a copy to:
                                              --------------

                                              AIG Global Investment Corporation
                                              2929 Allen Parkway, A36-01
                                              Houston, TX  77019-2155
                                              Attn:    Legal Department - Investment Management

                                              Fax:     713-831-2328
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            THE VARIABLE ANNUITY LIFE INSURANCE COMPANY
                                              AIG ANNUITY INSURANCE COMPANY
                                              THE FRANKLIN LIFE INSURANCE COMPANY
                                              THE UNITED STATES LIFE INSURANCE COMPANY
                                              IN THE CITY OF NEW YORK
                                              By:      AIG Global Investment Corp., investment adviser

                                                       By:___________________________________
                                                       Name:
                                                       Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             State Street Bank and Trust Company
                                              Securities Services
                                              225 Franklin Street
                                              Boston, MA  02105
                                              Attn: Ana Barnes
                                                    Receive and Deliver

                                              with a request that Ms. Barnes confirm  receipt of original  securities and
                                              ---------------------------------------------------------------------------
                                              forward a copy of same to:
                                              --------------------------

                                              Susie Hayes
                                              AIG Global Investment Corp.
                                              2929 Allen Parkway, A36-01
                                              Houston, TX 77019

                                              provide a carbon copy of the above to:
                                              -------------------------------------

                                              Ed Holmes
                                              Fax:     713-831-2328
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     13-5459480
============================================= ===========================================================================
</TABLE>

                                 Schedule A-15
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                RELIASTAR LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              RELIASTAR LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-6; $20,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  The Bank of New York
                                              IOC 566 - INST'L CUSTODY
                                              ABA # 021-000-018
                                              Ref:     ReliaStar Life Insurance Company
                                              Acct. #: 187035 and 15131# AD 8

                                              Re:      (see "Accompanying Information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       ING Investment Management LLC
                                              5780 Powers Ferry Road, NW, Suite 300
                                              Atlanta, GA 30327-4349
                                              Attn:    Securities Accounting

                                              Fax:     (770) 690-4899
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 ING Investment Management LLC
                                              100 Washington Avenue South, Suite 1635
                                              Minneapolis, MN  55401-2121
                                              Attn:    Chris Patton

                                              Tel:     (612) 342-7576
                                              Fax:     (612) 372-5368

                                              with a copy to:
                                              --------------

                                              ING Investment Management LLC
                                              5780 Powers Ferry Road, NW, Suite 300
                                              Atlanta, GA  30327-4349
                                              Attn:    Private Placements

                                              Fax:     (770) 690-4899
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            RELIASTAR LIFE INSURANCE COMPANY
                                              By:  ING Investment Management LLC, as Agent

                                              By: ____________________________________
                                              Name:
                                              Title:
============================================= ===========================================================================
</TABLE>

                                 Schedule A-16
<PAGE>
<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                RELIASTAR LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Instructions re Delivery of Notes             The Bank of New York
                                              Free Receipt / Delivery Window
                                              Window A, 3rd Floor
                                              One Wall Street
                                              New York, NY  10288
                                              Re:      Account # 187035

                                              with a copy of the above transmittal to:
                                              ---------------------------------------

                                              ING Investment Management LLC
                                              5780 Powers Ferry Road, NW, Suite 300
                                              Atlanta, GA  30327-4349
                                              Attn:    Joyce Resnick
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     41-0451140
============================================= ===========================================================================
</TABLE>

                                 Schedule A-17
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                ING LIFE INSURANCE AND ANNUITY COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              ING LIFE INSURANCE AND ANNUITY COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-7; $15,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  The Bank of New York
                                              ABA # 021-000-018
                                              BNF:     IOC566
                                              Attn: P&I Department
                                              Ref:     ING Life Insurance and Annuity Company
                                              Acct. #: 216101 and 15131# AD 8

                                              Re:      (see "Accompanying Information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       ING Investment Management LLC
                                              5780 Powers Ferry Road, NW, Suite 300
                                              Atlanta, GA 30327-4349
                                              Attn:    Securities Accounting

                                              Fax:     (770) 690-4899
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 ING Investment Management LLC
                                              100 Washington Avenue South, Suite 1635
                                              Minneapolis, MN  55401-2121
                                              Attn:    Chris Patton

                                              Tel:     (612) 342-7576
                                              Fax:     (612) 372-5368

                                              with a copy to:
                                              --------------

                                              ING Investment Management LLC
                                              5780 Powers Ferry Road, NW, Suite 300
                                              Atlanta, GA  30327-4349
                                              Attn:    Private Placements

                                              Fax:     (770) 690-4899
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            ING LIFE INSURANCE AND ANNUITY COMPANY
                                              By:  ING Investment Management LLC, as Agent

                                              By: ____________________________________
                                              Name:
                                              Title:
============================================= ===========================================================================
</TABLE>

                                 Schedule A-18
<PAGE>
<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                ING LIFE INSURANCE AND ANNUITY COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Instructions re Delivery of Notes             The Bank of New York
                                              Free Receipt / Delivery Window
                                              Window A, 3rd Floor
                                              One Wall Street
                                              New York, NY  10288
                                              Re:      Account # 216101

                                              with a copy of the above transmittal to:
                                              ---------------------------------------

                                              ING Investment Management LLC
                                              5780 Powers Ferry Road, NW, Suite 300
                                              Atlanta, GA  30327-4349
                                              Attn:    Joyce Resnick
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     71-0294708
============================================= ===========================================================================
</TABLE>

                                 Schedule A-19
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                PACIFIC LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              MAC & CO.
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-8; $5,000,000
                                              RD-9; $5,000,000
                                              RD-10; $1,000,000
                                              RD-11; $1,000,000
                                              RD-12; $1,000,000
                                              RD-13; $1,000,000
                                              RD-14; $500,000
                                              RD-15; $500,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Boston Safe Deposit and Trust Company
                                              ABA# 011-001-234
                                              BOS SAFE DEP
                                              DDA # 125261
                                              Attn: MBS Income CC: 1253
                                              A/C:     Pacific Life General Account
                                                       PLCF1810132

                                              Re:  (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Mellon Trust
                                              Three Mellon Bank Center
                                              Pittsburgh, PA 15259
                                              Attn:    Pacific Life Accounting Team
                                                       AIM # 153-3610

                                              Fax:     412-236-7529

                                              with a copy to:
                                              --------------

                                              Pacific Life Insurance Company
                                              700 Newport Center Drive
                                              Newport Beach, CA  92660-6397
                                              Attn:    Cash Team
                                                       Securities Administration

                                              Fax:     949-640-4013
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Pacific Life Insurance Company
                                              700 Newport Center Drive
                                              Newport Beach, CA  92660-6397
                                              Attn:    Securities Department

                                              Fax:     949-219-5406
============================================= ===========================================================================
</TABLE>

                                 Schedule A-20
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                PACIFIC LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Other Instructions                            PACIFIC LIFE INSURANCE COMPANY

                                              By: ________________________________
                                              Name:
                                              Title:

                                              By: ________________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Mellon Securities Trust Company
                                              120 Broadway, 13th Floor
                                              New York, NY 10271
                                              Attn: Robert Ferraro
                                              A/C:     Pacific Life General Acct
                                                       PLCF1810132

                                              Tel:     212-374-1918
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     95-1079000
============================================= ===========================================================================
</TABLE>

                                 Schedule A-21
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                HARTFORD FIRE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              HARTFORD FIRE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RE-5; $6,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Chase Manhattan Bank
                                              4 New York Plaza
                                              New York, NY 10004
                                              ABA # 021-000-021
                                              Chase NYC/Cust
                                              A/C # 900-9-000200 for further credit to G0244-FHO
                                              Attn:    Bond Interest/Principal - Cenex Harvest States Cooperatives]

                                              Re:  (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   5.60% Series E Senior Notes due October 18, 2017

                                              PPN:                       15131# AE 6

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Hartford Investment Management Company
                                              c/o Portfolio Support
                                              P.O. Box 1744
                                              Hartford, CT 06144-1744

                                              Fax:     860-297-8875 / 8876
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Hartford Investment Management Company
                                              c/o Investment Department - Private Placements
                                              P.O. Box 1744
                                              Hartford, CT 06144-1744

                                              Fax:     860-297-8884
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            HARTFORD FIRE INSURANCE COMPANY
                                              By:      Hartford Investment Services, Inc., its Agent and Attorney-in-Fact

                                              By______________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Chase Manhattan Bank
                                              North America Insurance
                                              3 MetroTech Center, 5th Floor South
                                              Brooklyn, NY 11245
                                              Attn: Bettye Carrera

                                              CUSTODY ACCOUNT # G0244-FHO MUST APPEAR ON OUTSIDE OF ENVELOPE
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     06-0383750
============================================= ===========================================================================
</TABLE>

                                 Schedule A-22
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-16; $4,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Chase Manhattan Bank
                                              4 New York Plaza
                                              New York, NY 10004
                                              ABA # 021-000-021
                                              Chase NYC/Cust
                                              A/C # 900-9-000200 for further credit to G06956-EBD
                                              Attn:    Bond Interest/Principal - Cenex Harvest States Cooperatives]

                                              Re:  (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Hartford Investment Management Company
                                              c/o Portfolio Support
                                              P.O. Box 1744
                                              Hartford, CT 06144-1744

                                              Fax:     860-297-8875 / 8876
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Hartford Investment Management Company
                                              c/o Investment Department - Private Placements
                                              P.O. Box 1744
                                              Hartford, CT 06144-1744

                                              Fax:     860-297-8884
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
                                              By:      Hartford Investment Services, Inc., its Agent and Attorney-in-Fact

                                              By______________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Chase Manhattan Bank
                                              North America Insurance
                                              3 MetroTech Center, 5th Floor South
                                              Brooklyn, NY 11245
                                              Attn: Bettye Carrera

                                              CUSTODY ACCOUNT # G06956-EBD MUST APPEAR ON OUTSIDE OF ENVELOPE
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     06-0838648
============================================= ===========================================================================
</TABLE>

                                 Schedule A-23
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-17; $3,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Chase Manhattan Bank
                                              4 New York Plaza
                                              New York, NY 10004
                                              ABA # 021-000-021
                                              Chase NYC/Cust
                                              A/C # 900-9-000200 for further credit to G06586-ITT
                                              Attn:    Bond Interest/Principal - Cenex Harvest States Cooperatives]

                                              Re:  (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Hartford Investment Management Company
                                              c/o Portfolio Support
                                              P.O. Box 1744
                                              Hartford, CT 06144-1744

                                              Fax:     860-297-8875 / 8876
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Hartford Investment Management Company
                                              c/o Investment Department - Private Placements
                                              P.O. Box 1744
                                              Hartford, CT 06144-1744

                                              Fax:     860-297-8884
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
                                              By:      Hartford Investment Services, Inc., its Agent and Attorney-in-Fact

                                              By______________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Chase Manhattan Bank
                                              North America Insurance
                                              3 MetroTech Center, 6th Floor
                                              Brooklyn, NY 11245
                                              Attn: Bettye Carrera

                                              CUSTODY ACCOUNT # G06586-ITT MUST APPEAR ON OUTSIDE OF ENVELOPE
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     39-1052598
============================================= ===========================================================================
</TABLE>

                                 Schedule A-24
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-18; $2,900,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Citibank, N.A.
                                              111 Wall Street
                                              New York, NY 10043
                                              ABA # 021-000-089
                                              For MassMutual Long-Term Pool
                                              Acct. # 4067-3488

                                              Re:  (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA  01115
                                              Attn:    Securities Custody and Collection Department

                                              With telephone advice of payment to:
                                              -----------------------------------

                                              David L. Babson & Company Inc.
                                              Securities Custody and Collection Department

                                              Tel:     413-226-1803 / 1889
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn:    Securities Investment Division
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
                                              By:      David L. Babson & Company, Inc. as Investment Adviser

                                              By______________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn: Frank Lucchesi
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     04-1590850
============================================= ===========================================================================
</TABLE>

                                 Schedule A-25
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-19; $2,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  JPMorgan Chase Bank
                                              4 Chase MetroTech Center
                                              New York, NY 10081 ABA #
                                              021-000-021 For MassMutual IFM
                                              Non-Traditional Acct. # 910-2509073

                                              Re:      (see "Accompanying Information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 800
                                              Springfield, MA  01115
                                              Attn:    Securities Custody and Collection Department

                                              With telephonic advice of payment to:
                                              ------------------------------------

                                              David L. Babson & Company Inc.
                                              Securities Custody and Collection Department

                                              Tel:     413-226-1803 / 1839
--------------------------------------------- ---------------------------------------------------------------------------
Address for All other Notices                 Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn:    Securities Investment Division
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
                                              By:      David L. Babson & Company Inc. as Investment Adviser

                                              By:___________________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn: Frank Lucchesi
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     04-1590850
============================================= ===========================================================================
</TABLE>

                                 Schedule A-26
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-20; $900,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Citibank, N.A.
                                              111 Wall Street
                                              New York, NY 10043
                                              ABA # 021-000-089
                                              For MassMutual Spot Priced Contract
                                              Acct. # 3890-4953

                                              Re:      (see "Accompanying Information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 800
                                              Springfield, MA  01115
                                              Attn:    Securities Custody and Collection Department

                                              With telephonic advice of payment to:
                                              ------------------------------------

                                              David L. Babson & Company Inc.
                                              Securities Custody and Collection Department

                                              Tel:     413-226-1807 / 1839
--------------------------------------------- ---------------------------------------------------------------------------
Address for All other Notices                 Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn:    Securities Investment Division
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
                                              By:      David L. Babson & Company Inc. as Investment Adviser

                                              By:___________________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn: Frank Lucchesi
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     04-1590850
============================================= ===========================================================================
</TABLE>

                                 Schedule A-27
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-21; $500,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Citibank, N.A.
                                              111 Wall Street
                                              New York, NY  10043
                                              ABA # 021-000-089
                                              For MassMutual Structured Settlement Fund
                                              Acct. # 4065-5423

                                              Re:      (see "Accompanying Information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 800
                                              Springfield, MA  01115
                                              Attn:    Securities Custody and Collection Department

                                              With telephonic advice of payment to:
                                              ------------------------------------

                                              David L. Babson & Company Inc.
                                              Securities Custody and Collection Department

                                              Tel:     413-226-1807 / 1839
--------------------------------------------- ---------------------------------------------------------------------------
Address for All other Notices                 Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn:    Securities Investment Division
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
                                              By:      David L. Babson & Company Inc. as Investment Adviser

                                              By:___________________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn: Frank Lucchesi
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     04-1590850
============================================= ===========================================================================
</TABLE>

                                 Schedule A-28
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                C.M. LIFE INSURANCE COMPANY C/O MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              C.M. LIFE INSURANCE COMPANY c/o MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-22; $1,700,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Citibank, N.A.
                                              111 Wall Street
                                              New York, NY 10043
                                              ABA # 021-000-089
                                              For Segment 43 - Universal Life
                                              Acct. # 4068-6561

                                              Re:      (see "Accompanying Information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       C.M. Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn:    Securities Custody and Collection Department - S431

                                              With telephonic advice of payment to:
                                              ------------------------------------

                                              David L. Babson & Company Inc.
                                              Securities Custody and Collection Department

                                              Tel:     413-226-1803 / 1839
--------------------------------------------- ---------------------------------------------------------------------------
Address for All other Notices                 C.M. Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn:    Securities Investment Division
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            C.M. LIFE INSURANCE COMPANY
                                              By:      David L. Babson & Company Inc. as Investment Sub-Adviser

                                              By:___________________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Massachusetts Mutual Life Insurance Company
                                              c/o David L. Babson & Company Inc.
                                              1500 Main Street, Suite 2800
                                              Springfield, MA 01115
                                              Attn: Frank Lucchesi
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     06-1041383
============================================= ===========================================================================
</TABLE>

                                 Schedule A-29
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                UNITED OF OMAHA LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              UNITED OF OMAHA LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RD-23; $5,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  JPMorgan Chase Bank
                                              ABA # 021-000-021
                                              Attn:    Private Income Processing
                                              For credit to United of Omaha Life Insurance Company
                                              Acct. #: 900-9000200
                                              A/C:     G07097

                                              Re:  (See "Accompanying information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   4.96% Series D Senior Notes due October 18, 2012

                                              PPN:                       15131# AD 8

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       JPMorgan Chase Bank
                                              14201 Dallas Parkway, 13th Floor
                                              Dallas, TX  75254-2917
                                              Attn:    G. Ruiz
                                                       Income Processing

                                              Re:      A/C:  G07097
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 United of Omaha Life Insurance Company
                                              4 - Investment Loan Administration
                                              Mutual of Omaha Plaza
                                              Omaha, NE 68175-1011
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            UNITED OF OMAHA LIFE INSURANCE COMPANY

                                              By: ________________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             JPMorgan Chase Bank
                                              North America Insurance, 6th Floor
                                              3 Chase Metrotech Center
                                              Brooklyn, NY 11245
                                              Attn:    Patricia A. Radzicki
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     47-0322111
============================================= ===========================================================================
</TABLE>

                                 Schedule A-30
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                MODERN WOODMEN OF AMERICA
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              MODERN WOODMEN OF AMERICA
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RE-6; $5,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  The Northern Trust Company
                                              50 South LaSalle Street
                                              Chicago, IL 60675
                                              ABA # 071-000-152
                                              Acct. Name:  Modern Woodmen of America
                                              Acct. # 84352

                                              Re:      (see "Accompanying Information" below)
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   5.60% Series E Senior Notes due October 18, 2017

                                              PPN:                       15131# AE 6

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Modern Woodmen of America
                                              1701 First Avenue
                                              Rock Island, IL 61201
                                              Attn:    Investment Accounting Department
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Modern Woodmen of America
                                              1701 First Avenue
                                              Rock Island, IL 61201
                                              Attn:    Investment Department
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            MODERN WOODMEN OF AMERICA

                                              By______________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Modern Woodmen of America
                                              1701 First Avenue
                                              Rock Island, IL 61201
                                              Attn:    Investment Department
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     36-1493430
============================================= ===========================================================================
</TABLE>

                                 Schedule A-31
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                AMERICAN REPUBLIC INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              WELLS FARGO BANK, N.A. AS CUSTODIAN FOR AMERICAN REPUBLIC INSURANCE
                                              COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RE-7; $2,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Wells Fargo Bank, N.A.
                                              ABA # 091-000-019
                                              BNFA = 0000840245
                                              BNF = Trust Clearing Account
                                              FFC Attn:  Income Collections, Acct. # 20983400
                                              For further credit to American Republic Insurance Co.
                                              Acct. # 20983400

                                              Re:      see "Accompanying Information" below
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   5.60% Series E Senior Notes due October 18, 2017

                                              PPN:                       15131# AE 6

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       American Republic Insurance Company
                                              c/o Advantus Capital Management, Inc.
                                              400 Robert Street North
                                              St. Paul, MN  55101
                                              Attn:    Client Administrator
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 American Republic Insurance Company
                                              c/o Advantus Capital Management, Inc.
                                              400 Robert Street North
                                              St. Paul, MN  55101
                                              Attn:    Client Administrator
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            AMERICAN REPUBLIC INSURANCE COMPANY
                                              By:      Advantus Capital Management, Inc.

                                              By: ________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Well Fargo Bank, N.A.
                                              MAC N9306-050
                                              733 Marquette Avenue, 5th Floor
                                              Minneapolis, MN 55479
                                               Attn: Brandi Pickel
                                                     Investors Building
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     42-0113630
============================================= ===========================================================================
</TABLE>

                                 Schedule A-32
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                GREAT WESTERN INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              MERRILL LYNCH FOR GREAT WESTERN INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RE-8; $1,000,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Deutsche Bank Trust Company Americas
                                              ABA # 021-001-033
                                              For credit to Merrill Lynch Pierce Fenner & Smith Inc.
                                              Acct. #:          00810935
                                              Reference Acct. #:70G-13700
                                              Reference Name:   Great Western Insurance Company
                                              Contact:          Dan Andriano
                                                                201-557-4208

                                              Re:      see "Accompanying Information" below
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   5.60% Series E Senior Notes due October 18, 2017

                                              PPN:                       15131# AE 6

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Great Western Insurance Company
                                              c/o Advantus Capital Management, Inc.
                                              400 Robert Street North
                                              St. Paul, MN  55101
                                              Attn: Christine Rule
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Great Western Insurance Company
                                              c/o Advantus Capital Management, Inc.
                                              400 Robert Street North
                                              St. Paul, MN  55101
                                              Attn: Christine Rule
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            GREAT WESTERN INSURANCE COMPANY
                                              By:      Advantus Capital Management, Inc.

                                              By: ________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             New York Window / DTCC
                                              55 Water Street
                                              New York, NY 10041
                                              Attn: Butch Puazo
                                              Acct. #: 70G-13700
                                                       Great Western Insurance Company

                                              Tel:     201-855-2465
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     87-0395954
============================================= ===========================================================================
</TABLE>

                                 Schedule A-33
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                NATIONAL FARM LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              NATIONAL FARM LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RE-9; $500,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Chase Bank of Texas
                                              Fort Worth, TX  76102
                                              ABA # 113-000-609
                                              For credit to National Farm Life Insurance Company
                                              Acct. # 07303034907

                                              Re:      see "Accompanying Information" below
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   5.60% Series E Senior Notes due October 18, 2017

                                              PPN:                       15131# AE 6

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       National Farm Life Insurance Company
                                              c/o Advantus Capital Management, Inc.
                                              400 Robert Street North
                                              St. Paul, MN  55101
                                              Attn:    Client Administrator
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 National Farm Life Insurance Company
                                              c/o Advantus Capital Management, Inc.
                                              400 Robert Street North
                                              St. Paul, MN  55101
                                              Attn:    Client Administrator
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            NATIONAL FARM LIFE INSURANCE COMPANY
                                              By:      Advantus Capital Management, Inc.

                                              By: ________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             National Farm Life Insurance Company
                                              6001 Bridge Street
                                              Fort Worth, TX 76112-2619
                                              Attn:    J. D. Davis, Jr.
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     75-0708826
============================================= ===========================================================================
</TABLE>

                                 Schedule A-34
<PAGE>

<TABLE>
<CAPTION>
============================================= ===========================================================================
PURCHASER NAME                                PROTECTED HOME MUTUAL LIFE INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
<S>                                           <C>
Name in Which Note is Registered              WELLS FARGO BANK, N.A. AS CUSTODIAN FOR PROTECTED HOME MUTUAL LIFE
                                              INSURANCE COMPANY
--------------------------------------------- ---------------------------------------------------------------------------
Note Registration Number; Principal Amount    RE-10; $500,000
--------------------------------------------- ---------------------------------------------------------------------------
Payment on Account of Note

         Method                               Federal Funds Wire Transfer

         Account Information                  Wells Fargo Bank, N.A.
                                              ABA # 091-000-019 BNFA = 0840245
                                              BNF = Norwest Trust Clearing Mpls
                                              OBI = FFC to Norwest Client Acct. # 13371700
                                              Norwest Client Acct. Name: Protected Home Mutual Life Insurance Company

                                              Re:      see "Accompanying Information" below
--------------------------------------------- ---------------------------------------------------------------------------
Accompanying Information                      Name of Issuer:            CENEX HARVEST STATES COOPERATIVES

                                              Description of Security:   5.60% Series E Senior Notes due October 18, 2017

                                              PPN:                       15131# AE 6

                                              Due date and application (as among principal, premium and interest) of the
                                              payment being made.
--------------------------------------------- ---------------------------------------------------------------------------
Address for Notices Related to Payments       Protected Home Mutual Life Insurance Company
                                              c/o Advantus Capital Management, Inc.
                                              400 Robert Street North
                                              St. Paul, MN  55101
                                              Attn:    Client Administrator
--------------------------------------------- ---------------------------------------------------------------------------
Address for All Other Notices                 Protected Home Mutual Life Insurance Company
                                              c/o Advantus Capital Management, Inc.
                                              400 Robert Street North
                                              St. Paul, MN  55101
                                              Attn:    Client Administrator
--------------------------------------------- ---------------------------------------------------------------------------
Other Instructions                            PROTECTED HOME MUTUAL LIFE INSURANCE COMPANY
                                              By:      Advantus Capital Management, Inc.

                                              By: ________________________
                                              Name:
                                              Title:
--------------------------------------------- ---------------------------------------------------------------------------
Instructions re Delivery of Notes             Well Fargo Bank, N.A.
                                              733 Marquette Avenue, Lower Level 1
                                              Minneapolis, MN 55479-0051
                                              Attn: Chuck Scholl
                                                    Security Control and Transfer

                                              Tel:  612-316-1916
--------------------------------------------- ---------------------------------------------------------------------------
Tax Identification Number                     25-0740310
============================================= ===========================================================================
</TABLE>

                                 Schedule A-35
<PAGE>

                                   SCHEDULE B

                                  DEFINED TERMS

         As used herein, the following terms have the respective meanings set
forth below or set forth in the Section hereof following such term:

         "ADJUSTED CONSOLIDATED FUNDED DEBT" means Consolidated Funded Debt,
plus the net present value of operating leases of the Company and its
Subsidiaries as discounted by a rate of 10% per annum.

         "AFFILIATE" means, at any time, and with respect to any Person, (a) any
other Person that at such time directly or indirectly through one or more
intermediaries Controls, or is Controlled by, or is under common Control with,
such first Person, and (b) any Person beneficially owning or holding, directly
or indirectly, 10% or more of any class of voting or equity interests of the
Company or any Subsidiary or any corporation of which the Company and its
Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly,
10% or more of any class of voting or equity interests. As used in this
definition, "CONTROL" means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of a Person,
whether through the ownership of Voting Interests, by contract or otherwise.
Unless the context otherwise clearly requires, any reference to an "Affiliate"
is a reference to an Affiliate of the Company.

         "AGREEMENT, THIS" is defined in Section 17.3.

         "BUSINESS DAY" means any day other than a Saturday, a Sunday or a day
on which commercial banks in New York, New York are required or authorized to be
closed.

         "CAPITAL LEASE" means, at any time, a lease with respect to which the
lessee is required concurrently to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP.

         "CAPITALIZED LEASE OBLIGATION" means with respect to any Person and a
Capital Lease, the amount of the obligation of such Person as the lessee under
such Capital Lease (net of interest expenses) which would, in accordance with
GAAP, appear as a liability on a balance sheet of such Person.

         "CHANGE IN CONTROL" means any Person or Persons acting in concert,
together with the Affiliates thereof, directly or indirectly controlling or
owning (beneficially or otherwise) in the aggregate more than 50% of the
aggregate voting power of the issued and outstanding Voting Interests of the
Company.

         "CLOSING" is defined in Section 3.

         "COBANK" means Co-Bank, ACB, a United States Agricultural Credit Bank.

                                  Schedule B-1
<PAGE>

         "CODE" means the Internal Revenue Code of 1986, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time.

         "COMPANY" is defined in the introductory paragraph hereof.

         "CONFIDENTIAL INFORMATION" is defined in Section 20.

         "CONSOLIDATED CASH FLOW" means for any period shall mean the sum of (a)
earnings before income taxes of the Company and its Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP, PLUS (b) the amounts
that have been deducted in the determination of such earnings before income
taxes for such period for (i) interest expense for such period, (ii)
depreciation for such period, (iii) amortization for such period and (iv)
extraordinary non-cash losses for such period, MINUS (c) the amounts that have
been included in the determination of such earnings before income taxes for such
period for (i) one-time gains, (ii) extraordinary income, (iii) non-cash
patronage income, and (iv) non-cash equity earnings in joint ventures.

         "CONSOLIDATED FUNDED DEBT" means as of any date of determination, the
total of all Funded Debt of the Company and its Subsidiaries outstanding on such
date, after eliminating all offsetting debits and credits between the Company
and its Subsidiaries and all other items required to be eliminated in course of
the preparation of consolidated financial statements of the Company and its
Subsidiaries in accordance with GAAP.

         "CONSOLIDATED MEMBERS' AND PATRONS' EQUITY" means, with respect to the
Company and its Subsidiaries, the amount of equity accounts, PLUS (or minus in
the case of a deficit) the amount of surplus and retained earnings accounts of
the Company and its Subsidiaries, PLUS (or minus in the case of a deficit) the
minority interests in Subsidiaries; PROVIDED that the total amount of intangible
assets of the Company and its Subsidiaries (including, without limitation,
unamortized debt discount and expense, deferred charges and goodwill) included
therein shall not exceed $30,000,000 (and to the extent such intangible assets
exceed $30,000,000, they will not be included in the calculation of Consolidated
Members' and Patrons' Equity); all as determined on a consolidated basis in
accordance with GAAP consistently applied.

         "CONSOLIDATED NET WORTH" means as of any date, members' equity of the
Company and its Subsidiaries as of such date, determined on a consolidated basis
in accordance with GAAP.

         "CONSOLIDATED TOTAL ASSETS" means at any time, the total assets of the
Company and its Subsidiaries that would be shown on a consolidated balance sheet
of the Company and its Subsidiaries at such time prepared in accordance with
GAAP.

         "DEBT" means with respect to any Person

                  (a) all obligations of such Person for borrowed money
         (including all obligations for borrowed money secured by any Lien with
         respect to any property owned by such Person whether or not such Person
         has assumed or otherwise become liable for such obligations),

                                  Schedule B-2
<PAGE>

                  (b) all obligations of such Person for the deferred purchase
         price of property acquired by such Person (excluding accounts payable
         arising in the ordinary course of business but including all
         liabilities created or arising under any conditional sale or other
         title retention agreement with respect to such property),

                  (c) all Capitalized Lease Obligations of such Person and

                  (d) all Guaranties of such Person with respect to liabilities
         of the type described in clause (a), (b) or (c) of any other Person,

         PROVIDED that (i) Debt of a Subsidiary of the Company shall exclude
such obligations and Guaranties of such Subsidiary if owed or guaranteed by a
Subsidiary to the Company or a Wholly-Owned Subsidiary of the Company, (ii) Debt
of the Company shall exclude such obligations and Guaranties if owed or
guaranteed by the Company to a Wholly-Owned Subsidiary of the Company and (iii)
Debt of the Company shall exclude any unfunded obligations which may exist now
and in the future in the Company's pension plans.

         "DEBT PREPAYMENT APPLICATION" is defined in Section 10.7(c).

         "DEFAULT" means an event or condition the occurrence or existence of
which would, with the lapse of time or the giving of notice or both, become an
Event of Default.

         "DEFAULT RATE" means that rate of interest that is the greater of (a)
2% per annum above the rate of interest stated in clause (a) of the first
paragraph of the Notes or (b) 2% over the rate of interest publicly announced by
The Bank of New York in New York, New York as its "base" or "prime" rate.

         "DESIGNATED PORTION" is defined in Section 10.7(b).

         "DISPOSITION VALUE" is defined in Section 10.7(c).

         "DISTRIBUTION" means, in respect of any corporation, association or
other business entity:

                  (a) dividends or other distributions or payments on capital
         stock or other equity interests of such corporation, association or
         other business entity (except distributions in such stock or other
         equity interest); and

                  (b) the redemption or acquisition of such stock or other
         equity interests or of warrants, rights or other options to purchase
         such stock or other equity interests (except when solely in exchange
         for such stock or other equity interests) unless made,
         contemporaneously, from the net proceeds of a sale of such stock or
         other equity interests.

         "ENVIRONMENTAL LAWS" means any and all Federal, state, local, and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or
governmental restrictions relating to pollution and the protection of the

                                  Schedule B-3
<PAGE>

environment or the release of any materials into the environment, including but
not limited to those related to hazardous substances or wastes, air emissions
and discharges to waste or public systems.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the rules and regulations promulgated thereunder
from time to time in effect.

         "ERISA AFFILIATE" means any trade or business (whether or not
incorporated) that is treated as a single employer together with the Company
under section 414 of the Code.

         "EVENT OF DEFAULT" is defined in Section 11.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

         "EXCLUDED TRANSFERS" is defined in Section 10.7(a).

         "FAIR MARKET VALUE" means, at any time and with respect to any
property, the sale value of such property that would be realized in an
arm's-length sale at such time between an informed and willing buyer and an
informed and willing seller (neither being under a compulsion to buy or sell,
respectively).

         "FINANCING DOCUMENTS" means, collectively, this Agreement, the Other
Agreements and the Notes.

         "FUNDED DEBT" means with respect to any Person, all Debt which would,
in accordance with GAAP, be required to be classified as a long term liability
on the books of such Person, and shall include, without limitation (i) any Debt
which by its terms or by the terms of any instrument or agreement relating
thereto matures, or which is otherwise payable or unpaid, more than one year
from the date of creation thereof, (ii) any Debt outstanding under a revolving
credit or similar agreement providing for borrowings (and renewals and
extensions thereof) which would, in accordance with GAAP, be required to be
classified as a long term liability of such Person, (iii) any Capitalized Lease
Obligation of such Person, and (iv) any Guaranty of such Person with respect to
Funded Debt of another Person. Notwithstanding anything to the contrary
contained herein, any Debt outstanding under a revolving credit or similar
agreement providing for borrowings where no amount of such Debt is outstanding
for a period of 30 consecutive days during each 12 month period (and which has
not been refinanced with other Debt which does not constitute Funded Debt) will
not be deemed to constitute Funded Debt.

         "GAAP" means generally accepted accounting principles as in effect from
time to time in the United States of America.

         "GOVERNMENTAL AUTHORITY"  means

                  (a) the government of

                           (i) the United States of America or any State or
                  other political subdivision thereof, or

                                  Schedule B-4
<PAGE>

                           (ii) any jurisdiction in which the Company or any
                  Subsidiary conducts all or any part of its business, or which
                  asserts jurisdiction over any properties of the Company or any
                  Subsidiary, or

                  (b) any entity exercising executive, legislative, judicial,
         regulatory or administrative functions of, or pertaining to, any such
         government.

         "GUARANTY" means, with respect to any Person, any obligation (except
the endorsement in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing any
Debt, dividend or other obligation of any other Person in any manner, whether
directly or indirectly, including (without limitation) obligations incurred
through an agreement, contingent or otherwise, by such Person:

                  (a) to purchase such Debt or obligation or any property
         constituting security therefor;

                  (b) to advance or supply funds (i) for the purchase or payment
         of such Debt or obligation, or (ii) to maintain any working capital or
         other balance sheet condition or any income statement condition of any
         other Person or otherwise to advance or make available funds for the
         purchase or payment of such Debt or obligation;

                  (c) to lease properties or to purchase properties or services
         primarily for the purpose of assuring the owner of such Debt or
         obligation of the ability of any other Person to make payment of the
         Debt or obligation; or

                  (d) otherwise to assure the owner of such Debt or obligation
         against loss in respect thereof.

         In any computation of the Debt or other liabilities of the obligor
under any Guaranty, the Debt or other obligations that are the subject of such
Guaranty shall be assumed to be direct obligations of such obligor.

          "HAZARDOUS MATERIAL" means any and all pollutants, toxic or hazardous
wastes or any other substances that might pose a hazard to health or safety, the
removal of which may be required or the generation, manufacture, refining,
production, processing, treatment, storage, handling, transportation, transfer,
use, disposal, release, discharge, spillage, seepage, or filtration of which is
or shall be restricted, prohibited or penalized by any applicable law
(including, without limitation, asbestos, urea formaldehyde foam insulation and
polychlorinated biphenyls).

         "HOLDER" means, with respect to any Note, the Person in whose name such
Note is registered in the register maintained by the Company pursuant to Section
13.1.

         "HOSTILE TENDER OFFER" means , with respect to the use of proceeds of
any Note, any offer to purchase, or any purchase of, shares of capital stock of
any corporation or equity interests in any other entity, or securities
convertible into or representing the beneficial

                                  Schedule B-5
<PAGE>

ownership of, or rights to acquire, any such shares or equity interests, if such
shares, equity interests, securities or rights are of a class which is publicly
traded on any securities exchange or in any over-the-counter market, other than
purchases of such shares, equity interests, securities or rights representing
less than 5% of the equity interests or beneficial ownership of such corporation
or other entity for portfolio investment purposes, and such offer or purchase
has not been duly approved by the board of directors of such corporation or the
equivalent governing body of such other entity prior to the date of the Closing.

         "INHAM EXEMPTION" is defined in Section 6.2(e).

         "INSTITUTIONAL INVESTOR" means (a) any original purchaser of a Note,
(b) any holder of a Note holding more than 5% of the aggregate principal amount
of the Notes then outstanding, and (c) any bank, trust company, savings and loan
association or other financial institution, any pension plan, any investment
company, any insurance company, any broker or dealer, or any other similar
financial institution or entity, regardless of legal form.

         "LIEN" means, with respect to any Person, any mortgage, lien, pledge,
charge, security interest or other encumbrance, or any interest or title of any
vendor, lessor, lender or other secured party to or of such Person under any
conditional sale or other title retention agreement or Capital Lease, upon or
with respect to any property or asset of such Person (including in the case of
stock, stockholder agreements, voting trust agreements and all similar
arrangements).

         "MAKE-WHOLE AMOUNT" is defined in Section 8.7.

         "MATERIAL" means material in relation to the business, operations,
affairs, financial condition, assets, properties, or prospects of the Company
and its Subsidiaries taken as a whole.

         "MATERIAL ADVERSE EFFECT" means a material adverse effect on (a) the
business, operations, affairs, financial condition, assets or properties of the
Company and its Subsidiaries taken as a whole, or (b) the ability of the Company
to perform its obligations under the Financing Documents, or (c) the validity or
enforceability of any of the Financing Documents.

         "MEMORANDUM" is defined in Section 5.3.

         "MULTIEMPLOYER PLAN" means any Plan that is a "multiemployer plan" (as
such term is defined in section 4001(a)(3) of ERISA).

         "NAIC ANNUAL STATEMENT" is defined in Section 6.2(a).

         "NCRA" means National Cooperative Refinery Association, a Kansas
cooperative association.

         "NET PROCEEDS AMOUNT" is defined in Section 10.7(c).

         "NOTES" is defined in Section 1.

                                  Schedule B-6
<PAGE>

         "OFFICER'S CERTIFICATE" means a certificate of a Senior Financial
Officer or of any other officer of the Company whose responsibilities extend to
the subject matter of such certificate.

         "ORDINARY COURSE TRANSFER" is defined in Section 10.7(a).

         "OTHER AGREEMENTS" is defined in Section 2.

         "OTHER PURCHASERS" is defined in Section 2.

         "PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA or any successor thereto.

         "PERSON" means an individual, partnership, corporation, limited
liability company, association, trust, unincorporated organization, or a
government or agency or political subdivision thereof.

         "PLAN" means an "employee benefit plan" (as defined in section 3(3) of
ERISA) that is or, within the preceding five years, has been established or
maintained, or to which contributions are or, within the preceding five years,
have been made or required to be made, by the Company or any ERISA Affiliate or
with respect to which the Company or any ERISA Affiliate may have any liability.

         "PRIMARY BANK FACILITY" means an agreement, guaranty or other
instrument (or agreements, guaranties or other instruments to the extent such
agreements, guaranties or other instruments were entered into in concert in one
or a series of transactions)): (i) entered into by the Company in connection
with the provision of recourse credit in the form of revolving loans, term
loans, letters of credit or other extensions of credit commonly provided under
syndicated bank credit agreements to the Company or any of its Subsidiaries and
(ii) under which the aggregate amount of credit extended (whether in the form of
loans or commitments) to the Company or for which the Company is obligated as a
guarantor or otherwise is $150,000,000 or more.

         "PRIORITY DEBT" means, at any time, without duplication, the sum of

                  (a) all then outstanding Debt of the Company or any Subsidiary
         secured by any Lien on any property of the Company or any Subsidiary
         (other than Debt secured only by Liens permitted under paragraphs (a)
         through (h) of Section 10.6), PLUS

                  (b)      all Funded Debt of Subsidiaries of the Company.

         "PROPERTY" or "PROPERTIES" means, unless otherwise specifically
limited, real or personal property of any kind, tangible or intangible, choate
or inchoate.

         "PROPOSED PREPAYMENT DATE" is defined in Section 8.2.

         "PTE" is defined in Section 6.2(a).

                                  Schedule B-7
<PAGE>

         "QPAM EXEMPTION" means Prohibited Transaction Class Exemption 84-14
issued by the United States Department of Labor.

         "QUALIFIED INSTITUTIONAL BUYER" means any Person who is a "qualified
institutional buyer" within the meaning of such term as set forth in Rule
144A(a)(1) under the Securities Act.

         "RATABLE PORTION" is defined in Section 10.7(c).

         "REINVESTED TRANSFER" is defined in Section 10.7(b).

         "REQUIRED HOLDERS" means, at any time, the holders of a majority in
aggregate principal amount of the Notes (without regard to Series) at the time
outstanding (exclusive of Notes then owned by the Company or any of its
Affiliates).

         "RESPONSIBLE OFFICER" means any Senior Financial Officer and any other
officer of the Company with responsibility for the administration of the
relevant portion of this Agreement.

         "SECURITIES ACT" means the Securities Act of 1933, as amended from time
to time.

         "SENIOR DEBT" means the Notes and any Debt of the Company or its
Subsidiaries that by its terms is not in any manner subordinated in right of
payment to any other unsecured Debt of the Company or any Subsidiary.

         "SENIOR FINANCIAL OFFICER" means the chief financial officer, principal
accounting officer, treasurer or comptroller of the Company.

         "SERIES" is defined in Section 1.

         "SERIES D NOTES" is defined in Section 1.

         "SERIES E NOTES" is defined in Section 1.

         "SERIES D REQUIRED PRINCIPAL PAYMENT" is defined in Section 8.2(a).

         "SERIES E REQUIRED PRINCIPAL PAYMENT" is defined in Section 8.2(a).

         "SOURCE" is defined in Section 6.2.

         "SUBSIDIARY" shall mean, with respect to any Person, any other Person
greater than 50% of the total combined voting power of all classes of Voting
Interests of which shall, at the time as of which any determination is being
made, be owned by such first Person either directly or through other
Subsidiaries of such first Person.

         "SUBSTANTIAL PORTION" is defined in Section 10.7(c).

         "SURVIVING CORPORATION" is defined in Section 10.2(b).

                                  Schedule B-8
<PAGE>

         "TRANSFER" is defined in Section 10.7(c)(iv).

         "VOTING INTERESTS" shall mean (a) with respect to any stock
corporation, any shares of stock of such corporation whose holders are entitled
under ordinary circumstances to vote for the election of directors of such
corporation or persons performing similar functions (irrespective of whether at
the time stock of any other class or classes shall have or might have voting
power by reason of the happening of any contingency), and (b) with respect to
the Company or any other entity, membership or other ownership interests in the
Company or such other entity whose holders are entitled under ordinary
circumstances to vote for the election of the directors of the Company or such
other entity or persons performing similar functions (irrespective of whether at
the time membership or other ownership interests of any other class or classes
shall have or might have voting power by reasoning of the happening of any
contingency).

         "USA PATRIOT ACT" means United States Public Law 107-56, United and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism (USA PATRIOT Act) Act of 2001.

         "WHOLLY-OWNED SUBSIDIARY" means, at any time, any Subsidiary one
hundred percent (100%) of all of the equity interests (except directors'
qualifying shares) and voting interests of which are owned by any one or more of
the Company and the Company's other Wholly-Owned Subsidiaries at such time.

                                  Schedule B-9
<PAGE>

                                  SCHEDULE 4.9

                         CHANGES IN CORPORATE STRUCTURE

         None.

                                 Schedule 4.9-1
<PAGE>

                                  SCHEDULE 5.3

                              DISCLOSURE MATERIALS

         None.

                                 Schedule 5.3-1
<PAGE>

                                  SCHEDULE 5.4

          SUBSIDIARIES OF THE COMPANY AND OWNERSHIP OF SUBSIDIARY STOCK

<TABLE>
<CAPTION>
===================================================================================================================================

ACTIVE/                                                                                                                   FISCAL
INACTIVE   CORPORATION                       ADDRESS                 TYPE   BUSINESS                 OWNERSHIP BY        YEAR END
===================================================================================================================================
<S>                                          <C>                      <C>                            <C>                    <C>
    A      Ag States Agency of Montana, Inc. 5500 Cenex Drive         SUB   Insurance Agency         100% by CHSC          31-Dec
                                             PO Box 64089
                                             St. Paul, MN  55164
-----------------------------------------------------------------------------------------------------------------------------------
    A      Ag States Agency, LLC             5500 Cenex Drive         JV    Independent Insurance    80% by CHSC; 20%      31-May
                                             PO Box 64089                   Agency                   by Cooperative
                                             St. Paul, MN  55164                                     Service Agency
-----------------------------------------------------------------------------------------------------------------------------------
    A      AgXML, LLC                        666 Grand Avenue,        LLC   Organized for the        CHS - 1,200
                                             Suite 2000                     purpose of achieving     Membership Units
                                             Des Moines, IA                 efficiencies by
                                             50309-2510                     establishing standards
                                                                            for grain & oilseed
                                                                            industries in
                                                                            electronic commerce
-----------------------------------------------------------------------------------------------------------------------------------
    A      Bec-Lin of Perham, Inc.           800 Fourth Street NW     SUB   Tortilla & Lefse         100% CHSC             31-Oct
                                             Perham, MN  56573              business                 (Acquired 6/1/00)
-----------------------------------------------------------------------------------------------------------------------------------
    A      CENEX Ag, Inc.                    5500 Cenex Drive         Sub   Sale of feed and seed    100% CENEX Inc.       31-Aug
           (formerly FUCEI-E, Inc.)          PO Box 64089                   products.
                                             St. Paul, MN  55164
-----------------------------------------------------------------------------------------------------------------------------------
    A      CENEX Canada Inc.                 5500 Cenex Drive         Sub   Petroleum; does no       100% CENEX Inc.
                                             PO Box 64089                   business
                                             St. Paul, MN  55164
-----------------------------------------------------------------------------------------------------------------------------------
    A      Cenex Harvest States Cooperatives 5500 Cenex Drive        Self   Combined Corporation     100% CHS
                                             PO Box 64089                   (Cenex and HSC)
                                             St. Paul, MN  55164
-----------------------------------------------------------------------------------------------------------------------------------
    A      Cenex Petroleum, Inc.             5500 Cenex Drive         Sub   Retail sales and         CENEX - 100%
                                             PO Box 64089                   distribution of
                                             St. Paul, MN  55164            petroleum and other
                                                                            related products.
-----------------------------------------------------------------------------------------------------------------------------------
    A      CENEX Pipeline LLC                5500 Cenex Drive         LLC   Operating Subsidiary     100% Cenex, Inc.
                                             PO Box 64089                   for pipeline operations
                                             St. Paul, MN  55164
===================================================================================================================================
</TABLE>

[WIDE TABLE CONTINUED FROM ABOVE

<TABLE>
<CAPTION>
========================================================================================
                                              JURISDICTION       DATE
ACTIVE/                                           OF              OF
INACTIVE   CORPORATION                       INCORPORATION   INCORPORATION   FEDERAL ID
========================================================================================
<S>                                             <C>           <C>            <C>
    A      Ag States Agency of Montana, Inc.    Montana       10/11/1977     81-0372838

----------------------------------------------------------------------------------------
    A      Ag States Agency, LLC               Minnesota      12/27/1994     41-1795536

----------------------------------------------------------------------------------------
    A      AgXML, LLC                             Iowa        Pending

----------------------------------------------------------------------------------------
    A      Bec-Lin of Perham, Inc.             Minnesota      2/20/1996      41-1831251

----------------------------------------------------------------------------------------
    A      CENEX Ag, Inc.                       Delaware      10/23/1974     41-1248837
           (formerly FUCEI-E, Inc.)

----------------------------------------------------------------------------------------
    A      CENEX Canada Inc.                    Alberta,      6/12/1987      Canadian
                                                 Canada                    8874 8884

----------------------------------------------------------------------------------------
    A      Cenex Harvest States Cooperatives   Minnesota      7/15/1936      41-0251095

----------------------------------------------------------------------------------------
    A      Cenex Petroleum, Inc.               Minnesota      7/11/1996      41-1847046

----------------------------------------------------------------------------------------
    A      CENEX Pipeline LLC                  Minnesota      5/4/1998

========================================================================================
</TABLE>

                                 Schedule 5.4-1
<PAGE>

<TABLE>
<CAPTION>
===================================================================================================================================

ACTIVE/                                                                                                                   FISCAL
INACTIVE   CORPORATION                       ADDRESS                 TYPE   BUSINESS                 OWNERSHIP BY        YEAR END
===================================================================================================================================
<S>                                          <C>                      <C>                            <C>                    <C>
    A      Cenex-Swiss Valley Energy LLC     5500 Cenex Drive         LLC   Farm Marketing and       40% Swiss Valley      31-Aug
                                             PO Box 64089                   Supply                   Farms Dubuque, IA,
                                             St. Paul, MN  55164                                     60% CHS
-----------------------------------------------------------------------------------------------------------------------------------
    A      Central Montana Propane, LLC      Highway 191 North,       SUB   Owning and operating a   CHSC 53.38% and       31-Aug
                                             Box 22                         propane wholesale and    Moore Farmers Oil
                                             Lewistown, MT                  resale operatintion      Company 46.62%
                                             59457
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS Aggressive Growth Fund, Inc.  11 East Chase Street    Corp   Investment Company       100% CHS              31-Aug
                                             Baltimore, MD 21202
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS Conservative Growth Fund,     11 East Chase Street    Corp   Investment Company       100% CHS              31-Aug
           Inc.                              Baltimore, MD  21202
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS Fixed Income Fund, Inc.       11 East Chase Street    Corp   Investment Company       100% CHS              31-Aug
                                             Baltimore, MD 21202
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS Holdings, Inc.                5500 Cenex Drive         SUB   Holding Company for      100% CHS              31-Aug
                                             PO Box 64089                   membership interests in
                                             St. Paul, MN  55164            the new LLC formed re:
                                                                            Terra
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS Moderate Growth Fund, Inc.    11 East Chase Street    Corp   Investment Company       100% CHS              31-Aug
                                             Baltimore, MD 21202
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Agri Valley                   1550 South 48th          SUB   organized for the        100% CHS              31-Aug
                                             Street, Suite 200              purpose of carrying on
                                             Grand Forks, ND  58201         a grain elevator and
                                                                            warehouse business
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Chinook                       135 First Street         SUB   Carrying on a farm       100% CHS              31-Aug
                                             Chinook, MT 59523-0339         supply business
                                                                            engaging in the
                                                                            purchase, sale and
                                                                            handling of
                                                                            agricultural
                                                                            products and
                                                                            agricultural
                                                                            supplies, energy
                                                                            products and
                                                                            machinery.
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Connell, Inc.                 433 North Columbia       SUB   Transaction of any and   100% CHS              31-Aug
                                             Avenue                         all lawful business for
                                             Connell, WA 99326              which associations may
                                                                            be incorporated.
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Crookston                     1111 So. Main            SUB   organized for the        100% CHS              31-Aug
                                             Crookston, MN 56716            purpose of carrying on
                                                                            a grain elevator and
                                                                            warehouse business
===================================================================================================================================
</TABLE>

[WIDE TABLE CONTINUED FROM ABOVE]

<TABLE>
<CAPTION>
========================================================================================
                                              JURISDICTION       DATE
ACTIVE/                                           OF              OF
INACTIVE   CORPORATION                       INCORPORATION   INCORPORATION   FEDERAL ID
========================================================================================
<S>                                            <C>            <C>            <C>
    A      Cenex-Swiss Valley Energy LLC       Minnesota      Jul-98         42-1475728

----------------------------------------------------------------------------------------
    A      Central Montana Propane, LLC        Montana        9/16/1997      81-0513866

----------------------------------------------------------------------------------------
    A      CHS Aggressive Growth Fund, Inc.    Maryland       5/1/2001       52-2316147
----------------------------------------------------------------------------------------
    A      CHS Conservative Growth Fund,       Maryland       5/1/2001       52-2316152
           Inc.
----------------------------------------------------------------------------------------
    A      CHS Fixed Income Fund, Inc.         Maryland       6/13/2001      41-2008912
----------------------------------------------------------------------------------------
    A      CHS Holdings, Inc.                  Minnesota      4/20/1999      41-1947300

----------------------------------------------------------------------------------------
    A      CHS Moderate Growth Fund, Inc.      Maryland       5/1/2001       52-2316156
----------------------------------------------------------------------------------------
    A      CHS-Agri Valley                     North Dakota   4/1/1999       91-1978844

----------------------------------------------------------------------------------------
    A      CHS-Chinook                         Montana        2/11/2002      73-1630482

----------------------------------------------------------------------------------------
    A      CHS-Connell, Inc.                   Washington     5/21/2001      36-4454350

----------------------------------------------------------------------------------------
    A      CHS-Crookston                       Minnesota      8/19/1999      41-1950417

========================================================================================
</TABLE>

                                 Schedule 5.4-2
<PAGE>

<TABLE>
<CAPTION>
===================================================================================================================================

ACTIVE/                                                                                                                   FISCAL
INACTIVE   CORPORATION                       ADDRESS                 TYPE   BUSINESS                 OWNERSHIP BY        YEAR END
===================================================================================================================================
<S>                                          <C>                      <C>                            <C>                    <C>
    A      CHS-Devils Lake                   10th Street and First    SUB   organized for the        100% CHS              31-Aug
                                             Avenue                         purpose of carrying on
                                             Devils Lake, ND  58301         a grain elevator and
                                                                            warehouse business
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Edgeley                       602 - 2nd Street         SUB   organized for the        100% CHS              31-Aug
                                             Edgeley, ND 58433              purpose of carrying on
                                                                            a grain elevator and
                                                                            warehouse business
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Garrison                      2100 Railroad Street     SUB   organized for the        100% CHS              31-Aug
                                             Garrison, ND 58540             purpose of carrying on
                                                                            a grain elevator and
                                                                            warehouse business
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Glasgow                       225 Railroad Alley       SUB   organized for the        100% CHS              31-Aug
                                             Glasgow, MT 59230              purpose of carrying on
                                                                            a grain elevator and
                                                                            warehouse business
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Grangeville, Inc.             1001 North A             SUB   The transaction of any   100% CHS              31-Aug
                                             P.O. Box 70                    and all lawful business
                                             Grangeville, ID                of which corporations
                                             83530-0070                     may be incorporated
                                                                            under the Idaho
                                                                            Business Corporations
                                                                            Act
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Highmore                       123 First Street        SUB   organized for the        100% CHS              31-Aug
                                             Highmore, SD 57345             purpose of carrying on
                                                                            a grain elevator and
                                                                            warehouse business
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Jasper                        401 South Railroad       SUB   carrying on a grain      100% CHS              31-Aug
                                             Avenue                         elevator and warehouse
                                             Jasper, MN 56144.              business
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Kalispell                     150 First Avenue W. N.   SUB   Owns and leases to CHSC  100% CHS              31-Aug
                                             Kalispell, MT  59901           grain elevator and
                                                                            agricultural and
                                                                            agronomy businesses
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Kindred                       41 Fifth Avenue South    SUB   Owns and leased to CHSC  100% CHS              31-Aug
                                             Kindred, ND 58051              grain elevator and
                                                                            warehouse businesses
===================================================================================================================================
</TABLE>

[WIDE TABLE CONTINUED FROM ABOVE]

<TABLE>
<CAPTION>
========================================================================================
                                              JURISDICTION       DATE
ACTIVE/                                           OF              OF
INACTIVE   CORPORATION                       INCORPORATION   INCORPORATION   FEDERAL ID
========================================================================================
<S>                                             <C>           <C>            <C>
    A      CHS-Devils Lake                    North Dakota    6/17/1999      45-0454323

----------------------------------------------------------------------------------------
    A      CHS-Edgeley                        North Dakota    5/26/2000      45-0457956

----------------------------------------------------------------------------------------
    A      CHS-Garrison                       North Dakota    5/9/2001       41-2011668

----------------------------------------------------------------------------------------
    A      CHS-Glasgow                          Montana       6/12/2000      81-0535014

----------------------------------------------------------------------------------------
    A      CHS-Grangeville, Inc.                 Idaho        2/23/2001      36-4456100

----------------------------------------------------------------------------------------
    A      CHS-Highmore                       South Dakota    6/20/2000      46-0457674

----------------------------------------------------------------------------------------
    A      CHS-Jasper                         South Dakota    3/8/2000       91-2064383

----------------------------------------------------------------------------------------
    A      CHS-Kalispell                        Montana       11/18/1998     81-0523061

----------------------------------------------------------------------------------------
    A      CHS-Kindred                        North Dakota    11/20/2001     41-2023309

========================================================================================
</TABLE>

                                 Schedule 5.4-3
<PAGE>

<TABLE>
<CAPTION>
===================================================================================================================================

ACTIVE/                                                                                                                   FISCAL
INACTIVE   CORPORATION                       ADDRESS                 TYPE   BUSINESS                 OWNERSHIP BY        YEAR END
===================================================================================================================================
<S>                                          <C>                      <C>                            <C>                    <C>
    A      CHS-Lewistown                     190 HC 191 North,        SUB   Owns and leases to CHSC  100% CHS              31-Aug
                                             Lewistown, MT 59457            grain elevator and
                                                                            warehouse businesses
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Madison                       202 South 6th Avenue     SUB   Owns and leases to CHSC  100% CHS              31-Aug
                                             Madison, MN  56557             grain elevator and
                                                                            agricultural and
                                                                            agronomy businesses
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Philip                        300 East Cherry          SUB   Owns and leases to CHSC  100% CHS              31-Aug
                                             Street Philip, SD              grain elevator and
                                             57567-0400                     agricultural and
                                                                            agronomy businesses
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Richey                        17 Railroad Avenue       SUB   For the purpose of       100% CHS              31-Aug
                                             Richey, MT  59259              carrying on a grain
                                                                            elevator and warehouse
                                                                            business
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Salol/Roseau                  232 2nd Avenue SE        SUB   Owns and leases to CHSC  100% CHS              31-Aug
                                             Roseau, MN  56751              grain elevator and
                                                                            agricultural and
                                                                            agronomy businesses
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Sioux Falls                   3900 North Cliff Ave.    SUB   Farm Supply business,    100% CHS              31-Aug
                                             Sioux Falls, SD 57118          as a cooperative,
                                                                            engaging in any
                                                                            activity or service
                                                                            in connection with
                                                                            the purchase, sale and
                                                                            handling of energy
                                                                            products.
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Stevensville                  115 Main Street          SUB   Owns and leases to CHSC  100% CHS              31-Aug
                                             Stevensville, MT               grain elevator and
                                             59870                          agricultural and
                                                                            agronomy businesses
-----------------------------------------------------------------------------------------------------------------------------------
    A      CHS-Tracy/Garvin                  301 South Street         SUB   Owns and leases to CHSC  100% CHS              31-Aug
                                             Tracy, MN  56175               grain elevator and
                                                                            agricultural and
                                                                            agronomy businesses
-----------------------------------------------------------------------------------------------------------------------------------
    A      Circle Land Management, Inc.                                     Land Mgt. for property   FUCE 100%
                                                                            around Laurel MT
                                                                            refinery
===================================================================================================================================
</TABLE>

[WIDE TABLE CONTINUED FROM ABOVE]

<TABLE>
<CAPTION>
========================================================================================
                                              JURISDICTION       DATE
ACTIVE/                                           OF              OF
INACTIVE   CORPORATION                       INCORPORATION   INCORPORATION   FEDERAL ID
========================================================================================
<S>                                             <C>           <C>            <C>
    A      CHS-Lewistown                        Montana       2/8/2001       36-4430427

----------------------------------------------------------------------------------------
    A      CHS-Madison                         Minnesota      9/14/1998      41-1928427

----------------------------------------------------------------------------------------
    A      CHS-Philip                         South Dakota    9/11/2000      41-1985526

----------------------------------------------------------------------------------------
    A      CHS-Richey                           Montana       11/24/1999     81-0530416

----------------------------------------------------------------------------------------
    A      CHS-Salol/Roseau                    Minnesota      7/6/1998       41-1928391

----------------------------------------------------------------------------------------
    A      CHS-Sioux Falls                    South Dakota    11/29/2000     41-1991671

----------------------------------------------------------------------------------------
    A      CHS-Stevensville                     Montana       11/18/1998     91-1947297

----------------------------------------------------------------------------------------
    A      CHS-Tracy/Garvin                    Minnesota      8/20/1998      41-1928293

----------------------------------------------------------------------------------------
    A      Circle Land Management, Inc.        Minnesota      5/5/1993       41-1750051

========================================================================================
</TABLE>

                                 Schedule 5.4-4
<PAGE>

<TABLE>
<CAPTION>
===================================================================================================================================

ACTIVE/                                                                                                                   FISCAL
INACTIVE   CORPORATION                       ADDRESS                 TYPE   BUSINESS                 OWNERSHIP BY        YEAR END
===================================================================================================================================
<S>                                          <C>                      <C>                            <C>                    <C>
    A      CoGrain                           560 W. Grain Terminal                                   Ritzville
                                             Rd.                                                     Warehouse Company
                                             Pasco, WA 99301                                         7.273%; CHS 54.5%;
                                                                                                     Pendleton Grain
                                                                                                     Growers 1.818%;
                                                                                                     Odessa Union
                                                                                                     Warehouse Co-op
                                                                                                     36.364%
-----------------------------------------------------------------------------------------------------------------------------------
    A      Cooperative Business              229 South Street        Corp   Promote international    100% CHS              31-Dec
           International, Inc.               Dover, DE 19901                trade among coops;
                                                                            provide services to
                                                                            coops engaged in
                                                                            international trade;
                                                                            promote international
                                                                            coop  business
                                                                            development
-----------------------------------------------------------------------------------------------------------------------------------
    A      COOPS@ROOSTER L.P.                5500 Cenex Drive         LP    To invest in, buy, sell  General               31-Aug
                                             PO Box 64089                   or otherwise acquire,    Partner-CHSC;
                                             St. Paul, MN  55164            hold or dispose of       Limited Partners -
                                                                            securities of eYield     Farmland, LOL,
                                                                            Solutions, Inc.          Growmark, CoBank,
                                                                                                     FCC
-----------------------------------------------------------------------------------------------------------------------------------
    A      Country Energy, LLC               5500 Cenex Drive         JV    Alliance between CHS     100% CHS              31-Aug
                                             PO Box 64089                   and Farmland
                                             St. Paul, MN  55164
-----------------------------------------------------------------------------------------------------------------------------------
    A      Country Hedging, Inc.             5500 Cenex Drive         SUB   Full service commodity   100% CHS              31-Aug
                                             PO Box 64089                   futures and option
                                             St. Paul, MN  55164            brokerage
-----------------------------------------------------------------------------------------------------------------------------------
    A      Fin-Ag, Inc.                      4001 South Westport      SUB   Provides cattle feeding  100%                  31-Aug
                                             Avenue                         and swine financing
                                             P.O. Box 88808                 loans; facility
                                             Sioux Falls, SD  57105         financing loans; crop
                                                                            production loans, and
                                                                            consulting services
-----------------------------------------------------------------------------------------------------------------------------------
    A      Five Valleys Gas Company          5500 Cenex Drive         SUB   formed to acquire and    100% CHS              31-Aug
                                             PO Box 64089                   operate the assets of
                                             St. Paul, MN  55164            Seeley Lake Gas
                                                                            Company(propane Fuel
                                                                            Sales) in Seeley Lake,
                                                                            MT - being sold to
                                                                            Energy Partners, LLC
===================================================================================================================================
</TABLE>

[WIDE TABLE CONTINUED FROM ABOVE

<TABLE>
<CAPTION>
========================================================================================
                                              JURISDICTION       DATE
ACTIVE/                                           OF              OF
INACTIVE   CORPORATION                       INCORPORATION   INCORPORATION   FEDERAL ID
========================================================================================
<S>                                             <C>           <C>            <C>
    A      CoGrain                             Washington     9/21/1990

----------------------------------------------------------------------------------------
    A      Cooperative Business                 Delaware      12/31/1984
           International, Inc.

----------------------------------------------------------------------------------------
    A      COOPS@ROOSTER L.P.                   Delaware      Pending        41-1968191

----------------------------------------------------------------------------------------
    A      Country Energy, LLC                  Delaware      4/9/1998       43-1813211

----------------------------------------------------------------------------------------
    A      Country Hedging, Inc.                Delaware      8/20/1986      41-1556399

----------------------------------------------------------------------------------------
    A      Fin-Ag, Inc.                       South Dakota    12/17/1987     46-0398764

----------------------------------------------------------------------------------------
    A      Five Valleys Gas Company            Minnesota      4/5/1999       41-1943236

========================================================================================
</TABLE>

                                 Schedule 5.4-5
<PAGE>

<TABLE>
<CAPTION>
===================================================================================================================================

ACTIVE/                                                                                                                   FISCAL
INACTIVE   CORPORATION                       ADDRESS                 TYPE   BUSINESS                 OWNERSHIP BY        YEAR END
===================================================================================================================================
<S>                                          <C>                      <C>                            <C>                    <C>
    A      Front Range Pipeline LLC          5500 Cenex Drive         LLC   To own and operate the   100% CHS
                                             PO Box 64089                   Front Range Pipeline
                                             St. Paul, MN  55164
-----------------------------------------------------------------------------------------------------------------------------------
    A      Full Circle, LTD.                 withdrawing from all           Does no business.        FUCE - 100%
                                             states except MN on
                                             2/2001
                                             Leon said to keep for now.
-----------------------------------------------------------------------------------------------------------------------------------
    A      Harvest States Cooperatives       Dienstenstraat 15        LLC   Grain Marketing          100% CHSC             31-Aug
           Europe B.V.                       NL 3161 GN Rhoon
                                             The Netherlands
-----------------------------------------------------------------------------------------------------------------------------------
    A      HSC-Edmore                        110 Viking Boulevard     SUB   Owns and leases to CHSC  100% CHS              31-Aug
                                             Box 128                        grain elevator and
                                             Edmore, ND  58330              agricultural and
                                                                            agronomy businesses
-----------------------------------------------------------------------------------------------------------------------------------
    A      HSC-Herman/Norcross               406 Pacific Avenue       SUB   Owns and leases to CHSC  100% CHS              31-Aug
                                             Herman, MN  56248              grain elevator and
                                                                            agricultural and
                                                                            agronomy business
-----------------------------------------------------------------------------------------------------------------------------------
    A      HSC-Minot, N.D.                   1600 27th Street SE      SUB   Owns and leases to CHSC  100% CHS              31-Aug
                                             PO Box 1947                    grain elevator and
                                             Minot, ND  58702-1947          agricultural and
                                                                            agronomy business
-----------------------------------------------------------------------------------------------------------------------------------
    A      Montevideo Grain, LLC             5500 Cenex Drive         LLC   Acquiring, owning,       Financial:  33%       31-Aug
                                             PO Box 64089                   operating and managing   FUOC; 67% CHSC;
                                             St. Paul, MN  55164            grain assets             Governance 50%
                                                                                                     FUOC, 50% CHSC
-----------------------------------------------------------------------------------------------------------------------------------
    A      National Cooperative Refinery     534 S. Kansas Ave.      Corp.  Manufacturer,            FUCE - 74.2%, 25.5    30-Sep
           Association (NCRA)                Topeka, KS 66603               marketing, and           Growmark and MFA
                                                                            wholesale distribution
                                                                            of petroleum products.
-----------------------------------------------------------------------------------------------------------------------------------
    A      PGG/HSC Feed Company, LLC.        300 West Feedville       JV    Feed Manufacturer        80% - CHSC and 20%    31-May
                                             Road                                                    Pendleton Grain
                                             Hermiston, OR  97838                                    Growers
-----------------------------------------------------------------------------------------------------------------------------------
    A      St. Paul Maritime Corporation                              SUB   Company employing        100% CHSC             31-Aug
                                                                            stevedores at Myrtle
                                                                            Grove Terminal
===================================================================================================================================
</TABLE>

[WIDE TABLE CONTINUED FROM ABOVE

<TABLE>
<CAPTION>
========================================================================================
                                              JURISDICTION       DATE
ACTIVE/                                           OF              OF
INACTIVE   CORPORATION                       INCORPORATION   INCORPORATION   FEDERAL ID
========================================================================================
<S>                                             <C>           <C>            <C>
    A      Front Range Pipeline LLC            Minnesota      3/23/1999      41-1935715

----------------------------------------------------------------------------------------
    A      Full Circle, LTD.                   Minnesota      10/8/1986

----------------------------------------------------------------------------------------
    A      Harvest States Cooperatives         Netherland     5/9/2001
           Europe B.V.

----------------------------------------------------------------------------------------
    A      HSC-Edmore                         North Dakota    12/22/1998     45-0452352

----------------------------------------------------------------------------------------
    A      HSC-Herman/Norcross                 Minnesota      4/21/1998      41-1908583

----------------------------------------------------------------------------------------
    A      HSC-Minot, N.D.                    North Dakota    7/16/1997      91-1858466

----------------------------------------------------------------------------------------
    A      Montevideo Grain, LLC                Delaware      8/9/2001       41-2015718

----------------------------------------------------------------------------------------
    A      National Cooperative Refinery         Kansas       7/7/1943
           Association (NCRA)

----------------------------------------------------------------------------------------
    A      PGG/HSC Feed Company, LLC.            Oregon       10/26/1994     93-1156470

----------------------------------------------------------------------------------------
    A      St. Paul Maritime Corporation       Minnesota      8/18/1995

========================================================================================
</TABLE>

                                 Schedule 5.4.6
<PAGE>

                                  SCHEDULE 5.5

                              FINANCIAL STATEMENTS

1.   Consolidated Balance Sheets for fiscal years 1998 through 2001 and third
     quarter ended May 31, 2002.

2.   Consolidated Income Statements for fiscal years 1998 through 2001 and third
     quarter ended May 31, 2002.

3.   Consolidated Cash Flow Statements for fiscal years 1998 through 2001.

                                 Schedule 5.5-1
<PAGE>

                                  SCHEDULE 5.6

                              RESTRICTIONS ON DEBT

1.   $225,000,000 6.81% Series A Notes due June 19, 2013 issued pursuant to Note
     Agreement dated as of June 19, 1998 among the Company and each of the
     investors listed on the Purchaser Schedule attached thereto.

2.   $25,000,000 7.90% Series B Notes due January 10, 2011 issued pursuant to
     Note Purchase and Private Shelf Agreement dated as of January 10, 2001
     among the Company and The Prudential Insurance Company and certain of
     affiliates thereof (the "Shelf Agreement") and $55,000,000 Private Shelf
     Facility established thereunder.

3.   $55,000,000 7.43% Series C Notes dated March 2, 2001 due March 2, 2011
     issued pursuant to the Shelf Agreement.

                                 Schedule 5.6-1
<PAGE>

                                  SCHEDULE 5.12

                              INTELLECTUAL PROPERTY

         None.

                                 Schedule 5.12-1
<PAGE>

                                  SCHEDULE 5.15

                                 USE OF PROCEEDS

         The proceeds from the Notes may be used for general corporate purposes,
including the repayment of certain existing indebtedness of the Company.

                                 Schedule 5.15-1
<PAGE>

                                  SCHEDULE 5.16

                                  EXISTING DEBT

CENEX HARVEST STATES COOPERATIVES & SUBSIDIARIES
OUTSTANDING DEBT & COMMITTED LINES OF CREDIT AS OF AUGUST 31, 2002

      SHORT-TERM NOTES                                                 $
      ----------------                                                ---
      CHS 364 Seasonal Line(1)                           $ 550,000,000.00
      NCRA's Seasonal Line(2)                               30,000,000.00
      Misc Notes                                               560,681.00
      ----------------------------------------- -------------------------
                                         TOTAL           $ 580,560,681.00

      INDUST REV BONDS                                                 $
      ----------------                                                ---
      Rush City, MN                                            600,000.00
      Laurel, MT                                               250,000.00
      Montana Econ                                           3,925,000.00
      NCRA's IRB's                                           1,000,000.00
      ----------------------------------------- -------------------------
                                         TOTAL           $   5,775,000.00

      PRIVATE PLACEMENT                                                $
      -----------------                                               ---
      Private Placement                                    225,000,000.00
      Prudential Shelf Note                                 55,000,000.00
      Prudential Shelf Note                                 25,000,000.00
      ----------------------------------------- -------------------------
                                         TOTAL           $ 305,000,000.00

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

        (1) Amount represents commitment. Actual drawn was $331,953,296.

        (2) Amount represents commitment. Actual drawn was $0.

                                 Schedule 5.16-1
<PAGE>

      COBANK & SYNDICATION                                             $
      --------------------                                            ---
      Building Loan                                         17,642,140.60
      5 yr Revolver(3)                                     200,000,000.00
      Term Debt                                            144,320,000.00
      NCRA's Term Debt                                      19,668,462.00
      ----------------------------------------- -------------------------
                                         TOTAL           $ 381,630,602.60

OTHER NOTES PAYABLE

      CORP BOOKS                                                       $
      ----------                                                      ---
      Bunkers                                                   52,512.13
      Halvorson Grain & Feed                                    56,892.07
      Robert L. Nygaard                                        101,500.00
      CSM-SBA Loan                                             202,176.19
      Calvin N.D. (DISC)                                        41,842.08
      Lemmon-Thunder Hawk (DISC)                               522,020.00
      Tacke Oil Cottonwood ID                                   50,806.06
      Mahnomen MN                                              483,806.72
      Greenbush MN                                             219,217.98
      ----------------------------------------- -------------------------
                                         TOTAL             $ 1,730,773.23

      COUNTRY OPERATIONS                                               $
      ------------------                                              ---
      Herman R Rath Note                                        34,363.83
      Lewiston Note                                             15,885.24
      Ag Svc Center-Elrosa                                      58,642.11
      CHS-French-Fergus Falls                                  101,960.10
      ------------------------------------------ ------------------------
                                          TOTAL            $   210,851.28

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

        (3) Amount represents commitment. Actual drawn was $75,000,000.

                                 Schedule 5.16-2
<PAGE>

      MILLING                                                          $
      -------                                                         ---
      MDT Rail Rehabilitation                                   97,021.34
      Rural Econ Development Loan                              271,986.87
      ------------------------------------------ ------------------------
                                          TOTAL           $    369,008.21

      FOODS                                                            $
      -----                                                           ---
      Mn Ag & Econ Development                               1,216,319.00
      MN Loan-Coulson Svc Corp                                 191,622.00
      Sellers Note-Rodriquez                                 1,000,000.00
      ------------------------------------------ ------------------------
                                          TOTAL           $           .00

      ------------------------------------------ ------------------------
                                          TOTAL           $  4,718,573.72

      ========================================== ========================
                             CONSOLIDATED TOTAL           $ 1,277,684,857

SCHEDULE OF FINANCIAL GUARANTEES FOR PRIVATE PLACEMENT CLOSING

<TABLE>
<CAPTION>
                                                                       Limit of         Current
Guaranteed For:                                                       Guarantee        Guarantee
---------------                                                       ---------        ---------
<S>                                                                  <C>               <C>
Financial Services - CoBank Note Purchase Agreement, 10% up to -     15,000,000         4,065,331
TEMCO Credit Facility                                                 7,500,000                --
FINAG Guarantees - CoBank Note Purchases
   *     15% Seasonal ($40,944,502)                                  12,750,000         6,141,675
   *     15% Term ($565,023)                                            750,000            84,753
   *     100% Seasonal ($30,502,745)                                 32,000,000        30,502,742
   *     100% Term ($2,766,652)                                       3,500,000         2,766,652
Norther Valley Petro LLC (1st United Bank)                              194,450           194,450
Country Hedging to Counter-Parties                                   15,000,000                --

-------------------------------------------------------------------------------------------------
                                              TOTAL GUARANTEES       86,694,450        43,755,604
</TABLE>

Current banking agreements limit guarantees outstanding to no more than $100
million. All debt guaranteed as of 8/31/02 is current.

                                 Schedule 5.16-3
<PAGE>

                                                                      EXHIBIT 1A

                             [FORM OF SERIES D NOTE]

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-[__]                                                               [Date]
$[________]                                                     PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to [____________________], or registered assigns, the principal sum of
[_______________] DOLLARS ($[_________]) on October 18, 2012, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 4.96% PER ANNUM from the date hereof,
payable semiannually on April 18th and October 18th in each year, commencing on
April 18, 2003, until the principal hereof shall have become due and payable,
and (b) to the extent permitted by law on any overdue payment (including any
overdue prepayment) of principal, any overdue payment of interest and any
overdue payment of any Make-Whole Amount (as defined in the Note Purchase
Agreements referred to below), payable semiannually as aforesaid (or, at the
option of the registered holder hereof, on demand), at a rate PER ANNUM from
time to time equal to the greater of (i) 6.96% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney

                                  Exhibit 1A-1
<PAGE>

duly authorized in writing, a new Note for a like principal amount will be
issued to, and registered in the name of, the transferee. Prior to due
presentment for registration of transfer, the Company may treat the Person in
whose name this Note is registered as the owner hereof for the purpose of
receiving payment and for all other purposes, and the Company will not be
affected by any notice to the contrary.

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

         THIS NOTE AND THE NOTE PURCHASE AGREEMENTS ARE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, EXCLUDING
CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

                                               CENEX HARVEST STATES COOPERATIVES

                                               By: _____________________________
                                               Name:

                                  Exhibit 1A-2
<PAGE>

                                                                      EXHIBIT 1B

                             [FORM OF SERIES E NOTE]

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-[__]                                                               [Date]
$[________]                                                     PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to [____________________], or registered assigns, the principal sum of
[_______________] DOLLARS ($[_________]) on October 18, 2017, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 5.60% PER ANNUM from the date hereof,
payable semiannually on April 18th and October 18th in each year, commencing on
April 18, 2003, until the principal hereof shall have become due and payable,
and (b) to the extent permitted by law on any overdue payment (including any
overdue prepayment) of principal, any overdue payment of interest and any
overdue payment of any Make-Whole Amount (as defined in the Note Purchase
Agreements referred to below), payable semiannually as aforesaid (or, at the
option of the registered holder hereof, on demand), at a rate PER ANNUM from
time to time equal to the greater of (i) 7.60% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney

                                  Exhibit 1B-1
<PAGE>

duly authorized in writing, a new Note for a like principal amount will be
issued to, and registered in the name of, the transferee. Prior to due
presentment for registration of transfer, the Company may treat the Person in
whose name this Note is registered as the owner hereof for the purpose of
receiving payment and for all other purposes, and the Company will not be
affected by any notice to the contrary.

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

         THIS NOTE AND THE NOTE PURCHASE AGREEMENTS ARE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, EXCLUDING
CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

                                               CENEX HARVEST STATES COOPERATIVES

                                               By: _____________________________
                                               Name:
                                               Title:

                                  Exhibit 1B-2
<PAGE>

                                                                       EXHIBIT 3

                          [FORM OF PAY PROCEEDS LETTER]

                              [Company Letterhead]

October 18, 2002

To each of the purchasers listed on Annex I hereto:

         Re:      CENEX HARVEST STATES COOPERATIVES
                  ---------------------------------
                  4.96% Series D Senior Notes due October 18, 2012
                  5.60% Series E Senior Notes due October 18, 2017

Ladies and Gentlemen:

         Reference is made to those certain separate Note Purchase Agreement,
each dated as of October 18, 2002 (as amended or otherwise modified from time to
time, the "NOTE PURCHASE AGREEMENT"), among Cenex Harvest States Cooperatives
(the "COMPANY") and each of the purchasers set forth on Schedule A attached
thereto (the "Purchasers"). Capitalized terms used but not defined herein shall
have the same meanings as given to them in the Note Purchase Agreement.

         Pursuant to Section 3 of the Note Purchase Agreement, the Company
hereby requests that the Purchasers transfer by federal funds wire transfer an
aggregate of $175,000,000, as payment in full for the purchase of the Notes to
be purchased by the Purchasers (in the respective amounts as provided on
Schedule A to the Note Purchase Agreement), to the following account:

                  WIRE TO:          Cenex Harvest States Cooperatives

                  BANK NAME:        Wells Fargo Bank Minnesota, N.A.
                                    Sixth and Marquette
                                    Minneapolis, MN 55479

                  ROUTING NO.:      091000019

                  ACCOUNT NO.       0000044070

Very truly yours,

CENEX HARVEST STATES COOPERATIVES

By:
   -----------------------------------------
Name:    John Schmitz
Title:   Executive Vice President and Chief Financial Officer

                                   Exhibit 3-1
<PAGE>

                                     ANNEX I

                                   PURCHASERS

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
c/o Prudential Capital Group
Two Prudential Plaza
180 North Stetson Street, Suite 5600
Chicago, IL 60601

PRUCO LIFE INSURANCE COMPANY
c/o Prudential Capital Group
Two Prudential Plaza
180 North Stetson Street, Suite 5600
Chicago, IL 60601

HARTFORD LIFE INSURANCE COMPANY
c/o Prudential Private Placement Investors, L.P.
4 Gateway Center
100 Mulberry Street
Newark, NJ 07102

GOLDEN AMERICAN LIFE INSURANCE COMPANY
c/o Prudential Private Placement Investors, L.P.
4 Gateway Center
100 Mulberry Street
Newark, NJ 07102

GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY
c/o Prudential Private Placement Investors, L.P.
4 Gateway Center
100 Mulberry Street
Newark, NJ 07102

THE VARIABLE ANNUITY LIFE INSURANCE COMPANY AND PA 54
c/o AIG Global Investment Corporation
2929 Allen Parkway, A36-04
Houston, TX  77019-2155

AIG ANNUITY INSURANCE COMPANY AND WE1B
c/o AIG Global Investment Corporation
2929 Allen Parkway, A36-04
Houston, TX  77019-2155

                                   Exhibit 3-2
<PAGE>

THE FRANKLIN LIFE INSURANCE COMPANY AND PA 37
c/o AIG Global Investment Corporation
2929 Allen Parkway, A36-04
Houston, TX  77019-2155

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK AND PA 77
c/o AIG Global Investment Corporation
2929 Allen Parkway, A36-04
Houston, TX  77019-2155

RELIASTAR LIFE INSURANCE COMPANY
c/o ING Investment Management LLC
100 Washington Avenue South, Suite 1635
Minneapolis, MN  55401-2121

ING LIFE INSURANCE AND ANNUITY COMPANY
c/o ING Investment Management LLC
100 Washington Avenue South, Suite 1635
Minneapolis, MN  55401-2121

PACIFIC LIFE INSURANCE COMPANY
700 Newport Center Drive
Newport Beach, CA  92660-6397

HARTFORD FIRE INSURANCE COMPANY
c/o Hartford Investment Management Company
c/o Investment Department - Private Placements
P.O. Box 1744
Hartford, CT  06144-1744

HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY
c/o Hartford Investment Management Company
c/o Investment Department - Private Placements
P.O. Box 1744
Hartford, CT  06144-1744

HARTFORD LIFE AND ANNUITY INSURANCE COMPANY
c/o Hartford Investment Management Company
c/o Investment Department - Private Placements
P.O. Box 1744
Hartford, CT  06144-1744

MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
c/o David L. Babson & Company Inc.
1500 Main Street, Suite 2800
Springfield, MA  01115

                                   Exhibit 3-3
<PAGE>

C.M. LIFE INSURANCE COMPANY
c/o David L. Babson & Company Inc.
1500 Main Street, Suite 2800
Springfield, MA  01115

UNITED OF OMAHA LIFE INSURANCE COMPANY
4 - Investment Loan Administration
Mutual of Omaha Plaza
Omaha, NE  68175-1011

MODERN WOODMEN OF AMERICA
1701 First Avenue
Rock Island, IL 61201

AMERICAN REPUBLIC INSURANCE COMPANY
c/o Advantus Capital Management, Inc.
400 Robert Street North
St. Paul, MN  55101

GREAT WESTERN INSURANCE COMPANY
c/o Advantus Capital Management, Inc.
400 Robert Street North
St. Paul, MN  55101

NATIONAL FARM LIFE INSURANCE COMPANY
c/o Advantus Capital Management, Inc.
400 Robert Street North
St. Paul, MN  55101

PROTECTED HOME MUTUAL LIFE INSURANCE COMPANY
c/o Advantus Capital Management, Inc.
400 Robert Street North
St. Paul, MN  55101

                                   Exhibit 3-4
<PAGE>

                                                                  EXHIBIT 4.4(a)

              [FORM OF OPINION OF GENERAL COUNSEL FOR THE COMPANY]

                                Exhibit 4.4(a)-1
<PAGE>

                                                                  EXHIBIT 4.4(B)

             [FORM OF OPINION OF SPECIAL COUNSEL FOR THE PURCHASERS]

                                 Exhibit 4.4(b)1
<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-1                                                        October 18, 2002
$21,500,000                                                     PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, or registered assigns,
the principal sum of TWENTY ONE MILLION FIVE HUNDRED THOUSAND DOLLARS
($21,500,000) on October 18, 2012, with interest (computed on the basis of a
360-day year of twelve 30-day months) (a) on the unpaid balance thereof at the
rate of 4.96% PER ANNUM from the date hereof, payable semiannually on April 18th
and October 18th in each year, commencing on April 18, 2003, until the principal
hereof shall have become due and payable, and (b) to the extent permitted by law
on any overdue payment (including any overdue prepayment) of principal, any
overdue payment of interest and any overdue payment of any Make-Whole Amount (as
defined in the Note Purchase Agreements referred to below), payable semiannually
as aforesaid (or, at the option of the registered holder hereof, on demand), at
a rate PER ANNUM from time to time equal to the greater of (i) 6.96% or (ii) 2%
over the rate of interest publicly announced from time to time by The Bank of
New York in New York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-2                                                        October 18, 2002
$1,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to PRUCO LIFE INSURANCE COMPANY, or registered assigns, the principal sum
of ONE MILLION DOLLARS ($1,000,000) on October 18, 2012, with interest (computed
on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid
balance thereof at the rate of 4.96% PER ANNUM from the date hereof, payable
semiannually on April 18th and October 18th in each year, commencing on April
18, 2003, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreements
referred to below), payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate PER ANNUM from time to time
equal to the greater of (i) 6.96% or (ii) 2% over the rate of interest publicly
announced from time to time by The Bank of New York in New York, New York (or
its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-3                                                        October 18, 2002
$3,750,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to HARTFORD LIFE INSURANCE COMPANY, or registered assigns, the principal
sum of THREE MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($3,750,000) on
October 18, 2012, with interest (computed on the basis of a 360-day year of
twelve 30-day months) (a) on the unpaid balance thereof at the rate of 4.96% PER
ANNUM from the date hereof, payable semiannually on April 18th and October 18th
in each year, commencing on April 18, 2003, until the principal hereof shall
have become due and payable, and (b) to the extent permitted by law on any
overdue payment (including any overdue prepayment) of principal, any overdue
payment of interest and any overdue payment of any Make-Whole Amount (as defined
in the Note Purchase Agreements referred to below), payable semiannually as
aforesaid (or, at the option of the registered holder hereof, on demand), at a
rate PER ANNUM from time to time equal to the greater of (i) 6.96% or (ii) 2%
over the rate of interest publicly announced from time to time by The Bank of
New York in New York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-4                                                        October 18, 2002
$7,500,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to GOLDEN AMERICAN LIFE INSURANCE COMPANY, or registered assigns, the
principal sum of SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,500,000) on
October 18, 2012, with interest (computed on the basis of a 360-day year of
twelve 30-day months) (a) on the unpaid balance thereof at the rate of 4.96% PER
ANNUM from the date hereof, payable semiannually on April 18th and October 18th
in each year, commencing on April 18, 2003, until the principal hereof shall
have become due and payable, and (b) to the extent permitted by law on any
overdue payment (including any overdue prepayment) of principal, any overdue
payment of interest and any overdue payment of any Make-Whole Amount (as defined
in the Note Purchase Agreements referred to below), payable semiannually as
aforesaid (or, at the option of the registered holder hereof, on demand), at a
rate PER ANNUM from time to time equal to the greater of (i) 6.96% or (ii) 2%
over the rate of interest publicly announced from time to time by The Bank of
New York in New York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-5                                                        October 18, 2002
$11,250,000                                                     PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to SALKELD & CO., or registered assigns, the principal sum of ELEVEN
MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS ($11,250,000) on October 18, 2012,
with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance thereof at the rate of 4.96% PER ANNUM from the date
hereof, payable semiannually on April 18th and October 18th in each year,
commencing on April 18, 2003, until the principal hereof shall have become due
and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 6.96% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-6                                                        October 18, 2002
$20,000,000                                                     PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to RELIASTAR LIFE INSURANCE COMPANY, or registered assigns, the principal
sum of TWENTY MILLION DOLLARS ($20,000,000) on October 18, 2012, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 4.96% PER ANNUM from the date hereof,
payable semiannually on April 18th and October 18th in each year, commencing on
April 18, 2003, until the principal hereof shall have become due and payable,
and (b) to the extent permitted by law on any overdue payment (including any
overdue prepayment) of principal, any overdue payment of interest and any
overdue payment of any Make-Whole Amount (as defined in the Note Purchase
Agreements referred to below), payable semiannually as aforesaid (or, at the
option of the registered holder hereof, on demand), at a rate PER ANNUM from
time to time equal to the greater of (i) 6.96% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-7                                                        October 18, 2002
$15,000,000                                                     PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to ING LIFE INSURANCE AND ANNUITY COMPANY, or registered assigns, the
principal sum of FIFTEEN MILLION DOLLARS ($15,000,000) on October 18, 2012, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of 4.96% PER ANNUM from the date
hereof, payable semiannually on April 18th and October 18th in each year,
commencing on April 18, 2003, until the principal hereof shall have become due
and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 6.96% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-8                                                        October 18, 2002
$5,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MAC & CO., or registered assigns, the principal sum of FIVE MILLION
DOLLARS ($5,000,000) on October 18, 2012, with interest (computed on the basis
of a 360-day year of twelve 30-day months) (a) on the unpaid balance thereof at
the rate of 4.96% PER ANNUM from the date hereof, payable semiannually on April
18th and October 18th in each year, commencing on April 18, 2003, until the
principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount (as defined in the Note Purchase Agreements referred to
below), payable semiannually as aforesaid (or, at the option of the registered
holder hereof, on demand), at a rate PER ANNUM from time to time equal to the
greater of (i) 6.96% or (ii) 2% over the rate of interest publicly announced
from time to time by The Bank of New York in New York, New York (or its
successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-9                                                        October 18, 2002
$5,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MAC & CO., or registered assigns, the principal sum of FIVE MILLION
DOLLARS ($5,000,000) on October 18, 2012, with interest (computed on the basis
of a 360-day year of twelve 30-day months) (a) on the unpaid balance thereof at
the rate of 4.96% PER ANNUM from the date hereof, payable semiannually on April
18th and October 18th in each year, commencing on April 18, 2003, until the
principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount (as defined in the Note Purchase Agreements referred to
below), payable semiannually as aforesaid (or, at the option of the registered
holder hereof, on demand), at a rate PER ANNUM from time to time equal to the
greater of (i) 6.96% or (ii) 2% over the rate of interest publicly announced
from time to time by The Bank of New York in New York, New York (or its
successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-10                                                       October 18, 2002
$1,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MAC & CO., or registered assigns, the principal sum of ONE MILLION
DOLLARS ($1,000,000) on October 18, 2012, with interest (computed on the basis
of a 360-day year of twelve 30-day months) (a) on the unpaid balance thereof at
the rate of 4.96% PER ANNUM from the date hereof, payable semiannually on April
18th and October 18th in each year, commencing on April 18, 2003, until the
principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount (as defined in the Note Purchase Agreements referred to
below), payable semiannually as aforesaid (or, at the option of the registered
holder hereof, on demand), at a rate PER ANNUM from time to time equal to the
greater of (i) 6.96% or (ii) 2% over the rate of interest publicly announced
from time to time by The Bank of New York in New York, New York (or its
successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-11                                                       October 18, 2002
$1,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MAC & CO., or registered assigns, the principal sum of ONE MILLION
DOLLARS ($1,000,000) on October 18, 2012, with interest (computed on the basis
of a 360-day year of twelve 30-day months) (a) on the unpaid balance thereof at
the rate of 4.96% PER ANNUM from the date hereof, payable semiannually on April
18th and October 18th in each year, commencing on April 18, 2003, until the
principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount (as defined in the Note Purchase Agreements referred to
below), payable semiannually as aforesaid (or, at the option of the registered
holder hereof, on demand), at a rate PER ANNUM from time to time equal to the
greater of (i) 6.96% or (ii) 2% over the rate of interest publicly announced
from time to time by The Bank of New York in New York, New York (or its
successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-12                                                       October 18, 2002
$1,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MAC & CO., or registered assigns, the principal sum of ONE MILLION
DOLLARS ($1,000,000) on October 18, 2012, with interest (computed on the basis
of a 360-day year of twelve 30-day months) (a) on the unpaid balance thereof at
the rate of 4.96% PER ANNUM from the date hereof, payable semiannually on April
18th and October 18th in each year, commencing on April 18, 2003, until the
principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount (as defined in the Note Purchase Agreements referred to
below), payable semiannually as aforesaid (or, at the option of the registered
holder hereof, on demand), at a rate PER ANNUM from time to time equal to the
greater of (i) 6.96% or (ii) 2% over the rate of interest publicly announced
from time to time by The Bank of New York in New York, New York (or its
successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-13                                                       October 18, 2002
$1,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MAC & CO., or registered assigns, the principal sum of ONE MILLION
DOLLARS ($1,000,000) on October 18, 2012, with interest (computed on the basis
of a 360-day year of twelve 30-day months) (a) on the unpaid balance thereof at
the rate of 4.96% PER ANNUM from the date hereof, payable semiannually on April
18th and October 18th in each year, commencing on April 18, 2003, until the
principal hereof shall have become due and payable, and (b) to the extent
permitted by law on any overdue payment (including any overdue prepayment) of
principal, any overdue payment of interest and any overdue payment of any
Make-Whole Amount (as defined in the Note Purchase Agreements referred to
below), payable semiannually as aforesaid (or, at the option of the registered
holder hereof, on demand), at a rate PER ANNUM from time to time equal to the
greater of (i) 6.96% or (ii) 2% over the rate of interest publicly announced
from time to time by The Bank of New York in New York, New York (or its
successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-14                                                       October 18, 2002
$500,000                                                        PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MAC & CO., or registered assigns, the principal sum of FIVE HUNDRED
THOUSAND DOLLARS ($500,000) on October 18, 2012, with interest (computed on the
basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance
thereof at the rate of 4.96% PER ANNUM from the date hereof, payable
semiannually on April 18th and October 18th in each year, commencing on April
18, 2003, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreements
referred to below), payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate PER ANNUM from time to time
equal to the greater of (i) 6.96% or (ii) 2% over the rate of interest publicly
announced from time to time by The Bank of New York in New York, New York (or
its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-15                                                       October 18, 2002
$500,000                                                        PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MAC & CO., or registered assigns, the principal sum of FIVE HUNDRED
THOUSAND DOLLARS ($500,000) on October 18, 2012, with interest (computed on the
basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance
thereof at the rate of 4.96% PER ANNUM from the date hereof, payable
semiannually on April 18th and October 18th in each year, commencing on April
18, 2003, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreements
referred to below), payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate PER ANNUM from time to time
equal to the greater of (i) 6.96% or (ii) 2% over the rate of interest publicly
announced from time to time by The Bank of New York in New York, New York (or
its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-16                                                       October 18, 2002
$4,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY, or registered assigns,
the principal sum of FOUR MILLION DOLLARS ($4,000,000) on October 18, 2012, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of 4.96% PER ANNUM from the date
hereof, payable semiannually on April 18th and October 18th in each year,
commencing on April 18, 2003, until the principal hereof shall have become due
and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 6.96% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-17                                                       October 18, 2002
$3,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to HARTFORD LIFE AND ANNUITY INSURANCE COMPANY, or registered assigns,
the principal sum of THREE MILLION DOLLARS ($3,000,000) on October 18, 2012,
with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance thereof at the rate of 4.96% PER ANNUM from the date
hereof, payable semiannually on April 18th and October 18th in each year,
commencing on April 18, 2003, until the principal hereof shall have become due
and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 6.96% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-18                                                       October 18, 2002
$2,900,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, or registered assigns,
the principal sum of TWO MILLION NINE HUNDRED THOUSAND DOLLARS ($2,900,000) on
October 18, 2012, with interest (computed on the basis of a 360-day year of
twelve 30-day months) (a) on the unpaid balance thereof at the rate of 4.96% PER
ANNUM from the date hereof, payable semiannually on April 18th and October 18th
in each year, commencing on April 18, 2003, until the principal hereof shall
have become due and payable, and (b) to the extent permitted by law on any
overdue payment (including any overdue prepayment) of principal, any overdue
payment of interest and any overdue payment of any Make-Whole Amount (as defined
in the Note Purchase Agreements referred to below), payable semiannually as
aforesaid (or, at the option of the registered holder hereof, on demand), at a
rate PER ANNUM from time to time equal to the greater of (i) 6.96% or (ii) 2%
over the rate of interest publicly announced from time to time by The Bank of
New York in New York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-19                                                       October 18, 2002
$2,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, or registered assigns,
the principal sum of TWO MILLION DOLLARS ($2,000,000) on October 18, 2012, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of 4.96% PER ANNUM from the date
hereof, payable semiannually on April 18th and October 18th in each year,
commencing on April 18, 2003, until the principal hereof shall have become due
and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 6.96% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-20                                                       October 18, 2002
$900,000                                                        PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, or registered assigns,
the principal sum of NINE HUNDRED THOUSAND DOLLARS ($900,000) on October 18,
2012, with interest (computed on the basis of a 360-day year of twelve 30-day
months) (a) on the unpaid balance thereof at the rate of 4.96% PER ANNUM from
the date hereof, payable semiannually on April 18th and October 18th in each
year, commencing on April 18, 2003, until the principal hereof shall have become
due and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 6.96% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-21                                                       October 18, 2002
$500,000                                                        PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, or registered assigns,
the principal sum of FIVE HUNDRED THOUSAND DOLLARS ($500,000) on October 18,
2012, with interest (computed on the basis of a 360-day year of twelve 30-day
months) (a) on the unpaid balance thereof at the rate of 4.96% PER ANNUM from
the date hereof, payable semiannually on April 18th and October 18th in each
year, commencing on April 18, 2003, until the principal hereof shall have become
due and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 6.96% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-22                                                       October 18, 2002
$1,700,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to C.M. LIFE INSURANCE COMPANY C/O MASSACHUSETTS MUTUAL LIFE INSURANCE
COMPANY, or registered assigns, the principal sum of ONE MILLION SEVEN HUNDRED
THOUSAND DOLLARS ($1,700,000) on October 18, 2012, with interest (computed on
the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance
thereof at the rate of 4.96% PER ANNUM from the date hereof, payable
semiannually on April 18th and October 18th in each year, commencing on April
18, 2003, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreements
referred to below), payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate PER ANNUM from time to time
equal to the greater of (i) 6.96% or (ii) 2% over the rate of interest publicly
announced from time to time by The Bank of New York in New York, New York (or
its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 4.96% SERIES D SENIOR NOTE DUE OCTOBER 18, 2012

No. RD-23                                                       October 18, 2002
$5,000,000                                                      PPN: 15131# AD 8

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to UNITED OF OMAHA LIFE INSURANCE COMPANY, or registered assigns, the
principal sum of FIVE MILLION DOLLARS ($5,000,000) on October 18, 2012, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of 4.96% PER ANNUM from the date
hereof, payable semiannually on April 18th and October 18th in each year,
commencing on April 18, 2003, until the principal hereof shall have become due
and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 6.96% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series D Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

         THIS NOTE AND THE NOTE PURCHASE AGREEMENTS ARE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, EXCLUDING
CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

                                       CENEX HARVEST STATES COOPERATIVES

                                       By: _____________________________________
                                       Name:
                                       Title:

                                                                   SERIES D NOTE

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-1                                                        October 18, 2002
$20,000,000                                                     PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to THE VARIABLE ANNUITY LIFE INSURANCE COMPANY, or registered assigns,
the principal sum of TWENTY MILLION DOLLARS ($20,000,000) on October 18, 2017,
with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance thereof at the rate of 5.60% PER ANNUM from the date
hereof, payable semiannually on April 18th and October 18th in each year,
commencing on April 18, 2003, until the principal hereof shall have become due
and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 7.60% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-2                                                        October 18, 2002
$10,000,000                                                     PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to AIG ANNUITY INSURANCE COMPANY, or registered assigns, the principal
sum of TEN MILLION DOLLARS ($10,000,000) on October 18, 2017, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 5.60% PER ANNUM from the date hereof,
payable semiannually on April 18th and October 18th in each year, commencing on
April 18, 2003, until the principal hereof shall have become due and payable,
and (b) to the extent permitted by law on any overdue payment (including any
overdue prepayment) of principal, any overdue payment of interest and any
overdue payment of any Make-Whole Amount (as defined in the Note Purchase
Agreements referred to below), payable semiannually as aforesaid (or, at the
option of the registered holder hereof, on demand), at a rate PER ANNUM from
time to time equal to the greater of (i) 7.60% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-3                                                        October 18, 2002
$10,000,000                                                     PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to THE FRANKLIN LIFE INSURANCE COMPANY, or registered assigns, the
principal sum of TEN MILLION DOLLARS ($10,000,000) on October 18, 2017, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of 5.60% PER ANNUM from the date
hereof, payable semiannually on April 18th and October 18th in each year,
commencing on April 18, 2003, until the principal hereof shall have become due
and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 7.60% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-4                                                        October 18, 2002
$5,000,000                                                      PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK, or
registered assigns, the principal sum of FIVE MILLION DOLLARS ($5,000,000) on
October 18, 2017, with interest (computed on the basis of a 360-day year of
twelve 30-day months) (a) on the unpaid balance thereof at the rate of 5.60% PER
ANNUM from the date hereof, payable semiannually on April 18th and October 18th
in each year, commencing on April 18, 2003, until the principal hereof shall
have become due and payable, and (b) to the extent permitted by law on any
overdue payment (including any overdue prepayment) of principal, any overdue
payment of interest and any overdue payment of any Make-Whole Amount (as defined
in the Note Purchase Agreements referred to below), payable semiannually as
aforesaid (or, at the option of the registered holder hereof, on demand), at a
rate PER ANNUM from time to time equal to the greater of (i) 7.60% or (ii) 2%
over the rate of interest publicly announced from time to time by The Bank of
New York in New York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the

<PAGE>

purpose of receiving payment and for all other purposes, and the Company will
not be affected by any notice to the contrary.

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-5                                                        October 18, 2002
$6,000,000                                                      PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to HARTFORD FIRE INSURANCE COMPANY, or registered assigns, the principal
sum of SIX MILLION DOLLARS ($6,000,000) on October 18, 2017, with interest
(computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance thereof at the rate of 5.60% PER ANNUM from the date hereof,
payable semiannually on April 18th and October 18th in each year, commencing on
April 18, 2003, until the principal hereof shall have become due and payable,
and (b) to the extent permitted by law on any overdue payment (including any
overdue prepayment) of principal, any overdue payment of interest and any
overdue payment of any Make-Whole Amount (as defined in the Note Purchase
Agreements referred to below), payable semiannually as aforesaid (or, at the
option of the registered holder hereof, on demand), at a rate PER ANNUM from
time to time equal to the greater of (i) 7.60% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-6                                                        October 18, 2002
$5,000,000                                                      PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MODERN WOODMEN OF AMERICA, or registered assigns, the principal sum of
FIVE MILLION DOLLARS ($5,000,000) on October 18, 2017, with interest (computed
on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid
balance thereof at the rate of 5.60% PER ANNUM from the date hereof, payable
semiannually on April 18th and October 18th in each year, commencing on April
18, 2003, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreements
referred to below), payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate PER ANNUM from time to time
equal to the greater of (i) 7.60% or (ii) 2% over the rate of interest publicly
announced from time to time by The Bank of New York in New York, New York (or
its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-7                                                        October 18, 2002
$2,000,000                                                      PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to WELLS FARGO BANK, N.A. AS CUSTODIAN FOR AMERICAN REPUBLIC INSURANCE
COMPANY, or registered assigns, the principal sum of TWO MILLION DOLLARS
($2,000,000) on October 18, 2017, with interest (computed on the basis of a
360-day year of twelve 30-day months) (a) on the unpaid balance thereof at the
rate of 5.60% PER ANNUM from the date hereof, payable semiannually on April 18th
and October 18th in each year, commencing on April 18, 2003, until the principal
hereof shall have become due and payable, and (b) to the extent permitted by law
on any overdue payment (including any overdue prepayment) of principal, any
overdue payment of interest and any overdue payment of any Make-Whole Amount (as
defined in the Note Purchase Agreements referred to below), payable semiannually
as aforesaid (or, at the option of the registered holder hereof, on demand), at
a rate PER ANNUM from time to time equal to the greater of (i) 7.60% or (ii) 2%
over the rate of interest publicly announced from time to time by The Bank of
New York in New York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the

<PAGE>

purpose of receiving payment and for all other purposes, and the Company will
not be affected by any notice to the contrary.

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-8                                                        October 18, 2002
$1,000,000                                                      PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to MERRILL LYNCH FOR GREAT WESTERN INSURANCE COMPANY, or registered
assigns, the principal sum of ONE MILLION DOLLARS ($1,000,000) on October 18,
2017, with interest (computed on the basis of a 360-day year of twelve 30-day
months) (a) on the unpaid balance thereof at the rate of 5.60% PER ANNUM from
the date hereof, payable semiannually on April 18th and October 18th in each
year, commencing on April 18, 2003, until the principal hereof shall have become
due and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 7.60% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-9                                                        October 18, 2002
$500,000                                                        PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to NATIONAL FARM LIFE INSURANCE COMPANY, or registered assigns, the
principal sum of FIVE HUNDRED THOUSAND DOLLARS ($500,000) on October 18, 2017,
with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance thereof at the rate of 5.60% PER ANNUM from the date
hereof, payable semiannually on April 18th and October 18th in each year,
commencing on April 18, 2003, until the principal hereof shall have become due
and payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate PER ANNUM
from time to time equal to the greater of (i) 7.60% or (ii) 2% over the rate of
interest publicly announced from time to time by The Bank of New York in New
York, New York (or its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

<PAGE>

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

                        CENEX HARVEST STATES COOPERATIVES

                 5.60% SERIES E SENIOR NOTE DUE OCTOBER 18, 2017

No. RE-10                                                       October 18, 2002
$500,000                                                        PPN: 15131# AE 6

         FOR VALUE RECEIVED, the undersigned, CENEX HARVEST STATES COOPERATIVES
(herein called the "COMPANY"), a nonstock agricultural cooperative corporation
organized and existing under the laws of the State of Minnesota, hereby promises
to pay to WELLS FARGO BANK, N.A. AS CUSTODIAN FOR PROTECTED HOME MUTUAL LIFE
INSURANCE COMPANY, or registered assigns, the principal sum of FIVE HUNDRED
THOUSAND DOLLARS ($500,000) on October 18, 2017, with interest (computed on the
basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance
thereof at the rate of 5.60% PER ANNUM from the date hereof, payable
semiannually on April 18th and October 18th in each year, commencing on April
18, 2003, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreements
referred to below), payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate PER ANNUM from time to time
equal to the greater of (i) 7.60% or (ii) 2% over the rate of interest publicly
announced from time to time by The Bank of New York in New York, New York (or
its successor) as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the address shown in the register maintained by the Company for such
purpose or at such other place as the Company shall have designated by written
notice to the holder of this Note as provided in the Note Purchase Agreements
referred to below.

         This Note is one of a series of Series E Senior Notes (herein called
the "NOTES") issued pursuant to separate Note Purchase Agreements, each dated as
of October 18, 2002, (as from time to time amended, the "NOTE PURCHASE
AGREEMENTS"), between the Company and the respective purchasers named therein
and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality
provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to
have made the representation set forth in Section 6.2 of the Note Purchase
Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the Person in whose name this
Note is registered as the owner hereof for the

<PAGE>

purpose of receiving payment and for all other purposes, and the Company will
not be affected by any notice to the contrary.

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

<PAGE>

         THIS NOTE AND THE NOTE PURCHASE AGREEMENTS ARE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, EXCLUDING
CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

                                       CENEX HARVEST STATES COOPERATIVES

                                       By: _____________________________________
                                       Name:
                                       Title:

                                                                   SERIES E NOTEForm of Dated Indenture

================================================================================

                                HSBC HOLDINGS PLC

                                     Issuer

                                       TO

                              THE BANK OF NEW YORK

                                     Trustee

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

                                    INDENTURE

                                  Dated as of o

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

                                 Debt Securities

================================================================================

<PAGE>

Reconciliation and tie between Trust Indenture Act of 1939, as amended by the
Trust Indenture Reform Act of 1990, and Indenture dated as of o.

Trust Indenture Act Section                       Indenture Section

Section 310(a)(1)                                         6.09
(a)(2)                                                    6.09
(a)(3)                                                     N.A
(a)(4)                                                     N.A.
(a)(5)                                                    6.09
(b)                                                    6.08, 6.10
(c)                                                        N.A
Section 311(a)                                            6.13
(b)                                                       6.13
(c)                                                        N.A
Section 312(a)                                        7.01, 7.02(a)
(b)                                                      7.02(b)
(c)                                                      7.02(c)
Section 313(a)                                             7.03
(b)                                                        7.03
(c)                                                        7.03
(d)                                                        7.03
Section 314(a)                                             7.04
(a)(4)                                                    10.05
(b)                                                        N.A
(c)(1)                                                     1.02
(c)(2)                                                     1.02
(c)(3)                                                     N.A
(d)                                                        N.A
(e)                                                        1.02
Section 315(a)                                             6.01
(b)                                                    6.02, 7.03(a)
(c)                                                       6.01(b)
(d)                                                       6.01(c)
(e)                                                        5.14
Section 316 (a)(1)(A)                                      5.02
(a)(1)(B)                                                  5.13
(a)(2)                                                     N.A
(b)                                                        5.08
(c)                                                       1.04(f)
Section 317(a)(1)                                          5.03
(a)(2)                                                     5.04
(b)                                                        10.03
Section 318(a)                                               7

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

   Note:   This reconciliation and tie shall not, for any purpose, be deemed to
           be a part of the Indenture.

<PAGE>

                                   ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

    Section 1.01.     Definitions..............................................1

    Section 1.02.     Compliance Certificates and Opinions....................10

    Section 1.03.     Form of Documents Delivered to Trustee..................11

    Section 1.04.     Acts of Holders; Record Dates...........................11

    Section 1.05.     Notices, etc., to Trustee or Company....................13

    Section 1.06.     Notice to Holders; Waiver...............................14

    Section 1.07.     Conflict with Trust Indenture Act.......................15

    Section 1.08.     Effect of Headings and Table of Contents................15

    Section 1.09.     Successors and Assigns..................................15

    Section 1.10.     Separability Clause.....................................15

    Section 1.11.     Benefits of Indenture...................................15

    Section 1.12.     Governing Law...........................................15

    Section 1.13.     Legal Holidays..........................................16

    Section 1.14.     Immunity of Incorporators, Stockholders, Officers
                      and Directors...........................................16

    Section 1.15.     Appointment of Agent; Submission to Jurisdiction;
                      Waiver of Immunity......................................16

                                   ARTICLE TWO

                            FORMS OF DEBT SECURITIES

    Section 2.01.     Forms Generally.........................................17

    Section 2.02.     Form of Debt Securities.................................17

    Section 2.03.     Form of Trustee's Certificate of Authentication.........18

    Section 2.04.     Form of Trustee's Certificate of Authentication by
                      an Authenticating Agent.................................18

                                  ARTICLE THREE

                              THE DEBT SECURITIES

    Section 3.01.     Amount Unlimited; Issuable in Series....................20

    Section 3.02.     Denominations...........................................23

    Section 3.03.     Execution, Authentication, Delivery and Dating..........23

    Section 3.04.     Temporary Debt Securities...............................26

    Section 3.05.     Registration, Registration of Transfer and Exchange.....27

    Section 3.06.     Mutilated, Destroyed, Lost and Stolen Debt Securities...32

    Section 3.07.     Payment of Interest; Interest Rights Preserved..........33

    Section 3.08.     Persons Deemed Owners...................................35

    Section 3.09.     Cancellation............................................36

    Section 3.10.     Computation of Interest.................................36

    Section 3.11.     Payment in Currencies...................................36

    Section 3.12.     Certification by a Person Entitled to Delivery of a
                      Bearer Security.........................................38

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

    Section 4.01.     Satisfaction and Discharge..............................38

    Section 4.02.     Application of Trust Money..............................40

                                  ARTICLE FIVE

                                    REMEDIES

    Section 5.01.     Events of Default.......................................40

    Section 5.02.     Acceleration of Maturity; Rescission and Annulment......41

    Section 5.03.     Defaults; Collection of Indebtedness and Suits for
                      Enforcement by Trustee..................................41

    Section 5.04.     Trustee May File Proofs of Claim........................43

    Section 5.05.     Trustee May Enforce Claims Without Possession of
                      Debt Securities or Coupons..............................44

    Section 5.06.     Application of Money Collected..........................44

    Section 5.07.     Limitation on Suits.....................................44

    Section 5.08.     Unconditional Right of Holders to Receive Any
                      Principal, Premium and Interest.........................45

    Section 5.09.     Restoration of Rights and Remedies......................45

    Section 5.10.     Rights and Remedies Cumulative..........................45

    Section 5.11.     Delay or Omission Not Waiver............................46

    Section 5.12.     Control by Holders of Debt Securities...................46

    Section 5.13.     Waiver of Past Defaults.................................46

    Section 5.14.     Undertaking for Costs...................................47

                                   ARTICLE SIX

                                   THE TRUSTEE

    Section 6.01.     Certain Duties and Responsibilities.....................47

    Section 6.02.     Notice of Defaults......................................48

    Section 6.03.     Certain Rights of Trustee...............................49

    Section 6.04.     Not Responsible for Recitals or Issuance of Debt
                      Securities..............................................50

    Section 6.05.     May Hold Debt Securities or Coupons.....................50

    Section 6.06.     Money Held in Trust.....................................50

    Section 6.07.     Compensation and Reimbursement..........................51

    Section 6.08.     Disqualification; Conflicting Interests.................51

    Section 6.09.     Corporate Trustee Required; Eligibility.................52

    Section 6.10.     Resignation and Removal; Appointment of Successor.......52

    Section 6.11.     Acceptance of Appointment by Successor..................54

    Section 6.12.     Merger, Conversion, Consolidation or Succession to
                      Business................................................55

    Section 6.13.     Preferential Collection of Claims Against Company.......55

    Section 6.14.     Appointment of Authenticating Agent.....................55

                                  ARTICLE SEVEN

                HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

    Section 7.01.     Company to Furnish Trustee Names and Addresses of
                      Holders.................................................56

    Section 7.02.     Preservation of Information; Communications to Holders..57

    Section 7.03.     Reports by Trustee......................................58

    Section 7.04.     Reports by Company......................................58

                                  ARTICLE EIGHT

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

    Section 8.01.     Company May Consolidate, etc., Only on Certain Terms....59

    Section 8.02.     Successor Person Substituted............................59

    Section 8.03.     Assumption of Obligations...............................60

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

    Section 9.01.     Supplemental Indentures Without Consent of Holders......61

    Section 9.02.     Supplemental Indentures With Consent of Holders.........62

    Section 9.03.     Execution of Supplemental Indentures....................63

    Section 9.04.     Effect of Supplemental Indentures.......................64

    Section 9.05.     Conformity with Trust Indenture Act and Financial
                      Services Authority Requirements.........................64

    Section 9.06.     Reference in Debt Securities to Supplemental
                      Indentures..............................................64

                                   ARTICLE TEN

                                    COVENANTS

    Section 10.01.    Payment of Any Principal, Premium or Interest...........64

    Section 10.02.    Maintenance of Office or Agency.........................65

    Section 10.03.    Money for Debt Securities Payments to be Held in Trust..66

    Section 10.04.    Payment of Additional Amounts...........................67

    Section 10.05.    Officer's Certificate as to Compliance with Indenture
                      and Default.............................................69

    Section 10.06.    Waiver of Certain Covenants.............................69

                                 ARTICLE ELEVEN

                          REDEMPTION OF DEBT SECURITIES

    Section 11.01.    Applicability of Article................................70

    Section 11.02.    Election to Redeem; Notice to Trustee...................70

    Section 11.03.    Selection by Trustee of Debt Securities to be
                      Redeemed................................................70

    Section 11.04.    Notice of Redemption....................................71

    Section 11.05.    Deposit of Redemption Price.............................72

    Section 11.06.    Debt Securities Payable on Redemption Date..............72

    Section 11.07.    Debt Securities Redeemed in Part........................73

    Section 11.08.    Optional Redemption in the Event of Change in Tax
                      Treatment...............................................73

                                 ARTICLE TWELVE

                        SUBORDINATION OF DEBT SECURITIES

    Section 12.01.    Debt Securities Subordinate to Certain Creditors........74

    Section 12.02.    Provisions Solely to Define Relative Rights.............78

    Section 12.03.    Trustee to Effectuate Subordination.....................79

    Section 12.04.    No Waiver of Subordination Provisions...................79

    Section 12.05.    Notice to Trustee.......................................79

    Section 12.06.    Reliance on Judicial Order or Certificate of
                      Liquidating Agent.......................................80

    Section 12.07.    Trustee Not Fiduciary for Holders of Claims.............80

    Section 12.08.    Rights of Trustee as Holder of Claims; Preservation of
                      Trustee's Rights........................................80

    Section 12.09.    Article Applicable to Paying Agents.....................80

    Section 12.10.    Governing Law...........................................81

    Section 12.11.    Third Party Rights......................................81

                                ARTICLE THIRTEEN

                         EXCHANGE OR CONVERSION OF DEBT
                                   SECURITIES

    Section 13.01.    Applicability of Article................................81

    Section 13.02.    Election to Exchange or Convert; Notice to Trustee......81

    Section 13.03.    Notice of Exchange or Conversion........................81

    Section 13.04.    Deposit of Interest.....................................82

    Section 13.05.    Surrender of Debt Securities............................82

    Section 13.06.    Issuance of Exchange Securities or Conversion
                      Securities..............................................82

    Section 13.07.    Effect of Exchange or Conversion........................82

    Section 13.08.    Legal and Regulatory Compliance.........................83

    Section 13.09.    Taxes and Charges.......................................83

    Section 13.10.    Trustee Not Liable......................................84

                                ARTICLE FOURTEEN

                                   DEFEASANCE

    Section 14.01.    Applicability of Article................................84

    Section 14.02.    Defeasance Upon Deposit of Moneys or U.S. Government
                      Obligations.............................................84

    Section 14.03.    Deposited Moneys and U.S. Government Obligations to be
                      Held in Trust...........................................86

    Section 14.04.    Repayment to Company....................................86

    Section 14.05.    Indemnity for U.S. Government Obligations...............86

                                 ARTICLE FIFTEEN

                     MEETINGS OF HOLDERS OF DEBT SECURITIES

    Section 15.01.    Rules by Trustee, Paying Agent and Registrar............87

<PAGE>

                  INDENTURE dated as of o, between HSBC Holdings plc, a public
limited company duly organized and existing under the laws of England and Wales
(hereinafter called the "Company"), having its principal office at 8 Canada
Square, London E14 5HQ, England, and The Bank of New York, a New York banking
corporation, as Trustee (hereinafter called the "Trustee"), on the date hereof
having its principal corporate trust office located at 101 Barclay Street, Floor
21 West, New York, New York 10286.

                  RECITALS OF THE COMPANY

                  The Company has heretofore duly authorized the execution and
delivery of this Indenture to provide for the issuance from time to time of its
subordinated debt securities with a specified date for Maturity (herein called
the " Debt Securities"), to be issued in one or more series as in this Indenture
provided.

                  All things necessary have been done to make this Indenture a
valid agreement of the Company, in accordance with its terms.

                  NOW, THEREFORE, THIS INDENTURE WITNESSETH:

                  For and in consideration of the premises and the purchase of
the Debt Securities by the Holders thereof, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of the Debt
Securities or of any series thereof, as follows:

                                  ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

                  Section 1.01. Definitions. For all purposes of this Indenture,
except as otherwise expressly provided or unless the context otherwise requires:

                  (1) the terms defined in this Article have the meanings
         assigned to them in this Article, unless otherwise specified pursuant
         to Section 3.01 with respect to the Debt Securities of any series, and
         include the plural as well as the singular;

                  (2) all other terms used herein that are defined in the Trust
         Indenture Act, either directly or by reference therein, have the
         meanings assigned to them therein;

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

Certain terms, used principally in Article Six, are defined in that Article.

                  "Act" when used with respect to any Holder has the meaning
specified in Section 1.04.

                  "Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the possession,
direct or indirect, of the power to cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling", "controlled" and "under
common control with" have meanings correlative to the foregoing.

                  "Assets" means the unconsolidated gross assets (including
contingencies) of the Company, as shown in the latest published balance sheet
having the benefit of an unqualified Auditors' report, but with such adjustments
as the Auditors or, if the Company is in winding up, the liquidator shall
determine in their or his report given in accordance with Section 12.01(c)(ii).

                  "Auditors" means the auditors for the time being of the
Company or, if there shall be joint auditors of the Company, any one of such
joint auditors or, in the event of their being unable or unwilling to carry out
any action requested of them pursuant to the provisions of these presents, such
other firm of internationally recognized accountants as may be nominated by the
Company.

                  "Authenticating Agent" means any Person authorized by the
Trustee pursuant to Section 6.14 to act on behalf of the Trustee to authenticate
Debt Securities of one or more series.

                  "Authorized Newspaper" means a newspaper in an official
language of the country of publication or in the English language customarily
published on each Business Day, whether or not published on Saturdays, Sundays
or holidays, and of general circulation in the place in connection with which
the term is used or in the financial community of such place. Where successive
publications are required to be made in Authorized Newspapers, the successive
publications may be made in the same or in different newspapers in the same city
meeting the foregoing requirements and in each case on any Business Day. Unless
otherwise specified pursuant to Section 3.01 with respect to the Debt Securities
of any series, the Authorized Newspaper in New York City shall be The Wall
Street Journal, in London shall be the Financial Times and in Luxembourg shall
be the Luxemburger Wort.

                  "Bearer Security" means any Debt Security described in Section
2.02 that is payable to bearer.

                  "Board of Directors" means the board of directors of the
Company, or any duly authorized committee of that board or any one or more
directors and/or officers of the Company to whom such board or any such
committee shall have duly delegated its authority.

                  "Board Resolution" means a copy of a resolution certified by
the Secretary of the Company to have been duly adopted by the Board of Directors
of the Company and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

                  "Business Day", when used with respect to any Place of Payment
or any other location, means, except as may otherwise be provided with respect
to a particular series of Debt Securities, a weekday that is not a day on which
banking institutions are authorized or obligated by law or executive order to
close in any jurisdiction in which payments with respect to such series are
payable.

                  "Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Securities Exchange Act of
1934, as amended, or, if at any time after the execution of this instrument such
Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body performing such duties at such time.

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

                  "Company Request" and "Company Order" mean, respectively, a
written request or order signed in the name of the Company by an authorized
officer of the Company and delivered to the Trustee.

                  "Conversion" has the meaning specified in Section 3.01(22)

                  "Conversion Securities" has the meaning specified in Section
3.01(22).

                  "Corporate Trust Office" means the principal corporate trust
office of the Trustee at which at any particular time its corporate trust
business shall be administered which on the date hereof is located at 101
Barclay Street, Floor 21 West, New York, New York 10286, Attention: Corporate
Trust Administration.

                  The term "corporation" includes corporations, associations,
companies, joint stock companies, trusts and business trusts.

                  "Coupon" means any interest coupon appertaining to a Bearer
Security.

                  "Debt Securities" has the meaning stated in the first recital
of this Indenture and more particularly means any Debt Securities authenticated
and delivered under this Indenture.

                  "Debt Security Deposit Agreement" means the deposit agreement,
dated as of o, between the Company, the Depositary and holders from time to time
of book-entry Debt Securities.

                  "Default" has the meaning specified in Section 5.03.

                  "Defaulted Interest" has the meaning specified in Section
3.07.

                  "Deferral Notice" means a notice from the Company to the
Trustee, given in the manner prescribed in Section 1.05(1) that the Company will
not pay interest or principal on any Debt Security on an Interest Payment Date
or the Maturity Date, as the case may be, and will accordingly defer such
payment of interest or principal as specified in Section 5.03.

                  "Depositary" means, with respect to the Debt Securities of any
series issuable or issued in whole or in part in the form of one or more Global
Securities, the Person designated as Depositary by the Company pursuant to
Section 3.01 until a successor Depositary shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Depositary" shall mean
or include each Person who is then a Depositary hereunder, and if at any time
there is more than one such Person, "Depositary" as used with respect to the
Debt Securities of any such series shall mean the Depositary with respect to the
Debt Securities of that series.

                  "Discount Debt Security" means any Debt Security, which
provides for an amount (excluding any amounts attributable to accrued but unpaid
interest thereon) less than the principal amount thereof to be due and payable
upon a declaration of the Maturity thereof pursuant to Section 5.02.

                  "Dollar" or "$" means the coin or currency of the United
States of America that as at the time of payment is legal tender for the payment
of public and private debts.

                  "DTC" means, with respect to the Debt Securities of any series
issuable or issued in whole or in part in the form of one or more Global
Securities, The Depository Trust Company, its nominees and their respective
successors and assigns, or such other depositary institution hereinafter
appointed by the Company that is a clearing agency registered under the Exchange
Act.

                  "Euro" or "(euro)" means the single currency adopted by those
states participating in the European Monetary Union from time to time.

                  "Event Date" has the meaning specified in Section 3.01(22).

                  "Event of Default" has the meaning specified in Section 5.01.

                  "Exchange" has the meaning specified in Section 3.01(22).

                  "Exchange Securities" has the meaning specified in Section
3.01(22).

                  "Exchange Rate" means (a) with respect to Dollars in which
payment is to be made on Debt Securities denominated in a Foreign Currency, the
noon Dollar buying rate in The City of New York for cable transfers payable in
such Foreign Currency on the applicable Regular or Special Record Date or the
fifteenth day immediately preceding the Maturity of any principal, as the case
may be, as certified for customs purposes by the Federal Reserve Bank of New
York, (b) with respect to a Foreign Currency in which payment is to be made on
Debt Securities denominated in Dollars or converted into Dollars pursuant to
Section 3.11(d), the noon Dollar selling rate in The City of New York for cable
transfers payable in such Foreign Currency on the applicable Regular or Special
Record Date or the fifteenth day immediately preceding the Maturity of any
principal, as the case may be, as certified for customs purposes by the Federal
Reserve Bank of New York, and (c) with respect to a Foreign Currency in which
payment is to be made on Debt Securities denominated in a different Foreign
Currency, the exchange rate between such Foreign Currencies determined in the
manner specified pursuant to Section 3.01(18). If for any reason such rates are
not available with respect to one or more currencies for which an Exchange Rate
is required, the Exchange Rate 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 The City of New York or in the country of issue of the currency in
question, or such other quotations as the Exchange Rate Agent shall deem
appropriate. Unless otherwise specified by the Exchange Rate Agent if there is
more than one market for dealing in any currency by reason of foreign exchange
regulations or otherwise, the market to be used in respect of such currency
shall be that upon which a nonresident issuer of securities denominated in such
currency would purchase such currency in order to make payments in respect of
such securities.

                  "Exchange Rate Agent" means the Person, which may be the
Company, the Paying Agent or a bank or financial institution designated by the
Company to perform the functions of Exchange Rate Agent with respect to the Debt
Securities of a series.

                  "Exchange Rate Agent's Certificate", with respect to any date
for the payment of any principal, premium or interest in respect of the Debt
Securities of any series, means a certificate setting forth the applicable
Exchange Rate or Rates as of the applicable Regular or Special Record Date or
the fifteenth day immediately preceding the Maturity of any principal, as the
case may be, and the amounts payable in Dollars and Foreign Currencies in
respect of any principal, premium or interest in respect of Debt Securities
denominated in Euro or any Foreign Currency, and signed by or on behalf of the
Exchange Rate Agent and delivered to the Trustee and the Paying Agent.

                  "Foreign Currency" means a currency issued by the government
of any country other than the United States of America.

                  "Global Security" means a Registered or Bearer Security
evidencing all or any part of the Debt Securities of a series, issued to the
Depositary for such series in accordance with Section 3.03(c).

                  "Holder" means with respect to a Registered Security, the
Person in whose name such Registered Security is registered in the Register and,
with respect to a Bearer Security or a Coupon, the bearer thereof.

                  "Indenture" means this instrument as originally executed or as
it may from time to time be supplemented, amended or restated by or pursuant to
one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and, unless the context otherwise requires, shall
include the terms of the Debt Securities of each series established as
contemplated by Section 3.01.

                  "Indexed Security" means any Debt Security that is a Principal
Indexed Security or an Interest Indexed Security, or both, and any other Debt
Security that is specified as an Indexed Security pursuant to Section 3.01.

                  The term "interest", when used with respect to a Discount
Security, which by its terms bears interest only after Maturity, means interest
payable after Maturity.

                  "Interest Indexed Security" means any Debt Security (including
any Principal Indexed Security) that provides that the amount of interest
payable in respect thereof shall be determined by reference to an index based on
a currency or currencies or on the price or prices of one or more commodities or
securities, by reference to changes in the price or prices of one or more
currencies, commodities or securities or otherwise by application of a formula.

                  "Interest Payment Date", with respect to any Debt Security,
means the Stated Maturity of an installment of any interest on such Debt
Security; provided, however, that, unless otherwise provided as contemplated by
Section 3.01 with respect to the Debt Securities of any series, if the Company
does not pay any installment of interest on the pertinent Interest Payment Date
the obligation to make such payment and such Interest Payment Date shall be
deferred until the date upon which a dividend is paid on any class of share
capital of the Company.

                  "Liabilities" means the unconsolidated gross liabilities
(including contingencies) of the Company, as shown in the latest published
balance sheet having the benefit of an unqualified Auditors' report, but with
such adjustments as the Auditors or, if the Company is in winding up, the
liquidator shall determine in their or his report given in accordance with
Section 12.01(c)(ii).

                  "Maturity", when used with respect to any Debt Security, means
the date, if any, on which the principal of such Debt Security becomes due and
payable as therein or herein provided, whether at the Stated Maturity, if any,
or by declaration of acceleration, call for redemption, repayment at the option
of the Holder or otherwise; provided, however, that, unless otherwise provided
as contemplated by Section 3.01 with respect to the Debt Securities of any
series, if the Company does not pay all or any part of principal at Maturity,
the obligation to make such payment and Maturity shall be deferred until the
first Business Date after the date that falls six months after the original
Maturity, as provided in Section 5.03.

                  "Officer's Certificate" means a certificate signed by an
authorized officer of the Company and delivered to the Trustee.

                  "Opinion of Counsel" means a written opinion of counsel, who
may be counsel for the Company and who shall be satisfactory to the Trustee,
which is delivered to the Trustee.

                  "Ordinary Creditors" means creditors of the Company except
creditors in respect of Subordinated Indebtedness and creditors in respect of
debt securities with no maturity issued pursuant to an indenture of even date
herewith between the Company and The Bank of New York as trustee.

                  "Outstanding", when used with respect to the Debt Securities
of any series, means, as of the date of determination, all Debt Securities of
such series theretofore issued by the Company and authenticated and delivered
under this Indenture, except:

                  (i) Debt Securities of such series theretofore cancelled by
         the Trustee or delivered to the Trustee for cancellation;

                  (ii) Debt Securities of such series for whose payment or
         redemption money in the necessary amount has been theretofore deposited
         with the Trustee or any Paying Agent (other than the Company) in trust
         or set aside and segregated in trust by the Company (if the Company
         shall act as its own Paying Agent) for the Holders of such Debt
         Securities and any Coupons appertaining thereto; provided, however,
         that if such Debt Securities are to be redeemed, notice of such
         redemption shall have been duly given pursuant to this Indenture or
         provision therefore satisfactory to the Trustee shall have been made;
         and

                  (iii) Debt Securities of such series that have been paid
         pursuant to Section 3.06 or in exchange for or in lieu of which other
         Debt Securities have been authenticated and delivered pursuant to this
         Indenture, other than any such Debt Securities in respect of which
         there shall have been presented to the Trustee proof satisfactory to it
         that such Debt Securities are held by a bona fide purchaser in whose
         hands such Debt Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Debt Securities of any series have given any
request, demand, authorization, direction, notice, consent or waiver or taken
any other action hereunder, Debt Securities of such series owned by the Company
or any Affiliate of the Company shall be disregarded and deemed not to be
Outstanding, except that in determining whether the Trustee shall be protected
in relying upon such request, demand, authorization, direction, notice, consent,
waiver or action, only Debt Securities of such series about which the Trustee
has received written notice shall be so disregarded. Debt Securities of such
series so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right so to act with respect to such Debt Securities and that the
pledgee is not the Company or any Affiliate of the Company.

                  "Paying Agent" means any Person authorized by the Company to
pay the principal of (and premium, if any, on) or interest on any Debt
Securities on behalf of the Company.

                  "Permanent Global Security" means a Global Security that is,
at the time of the initial issuance of the related series of Debt Securities,
issued in permanent global bearer form without Coupons.

                  "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

                  "Place of Payment", when used with respect to the Registered
Security of any series payable in Dollars, means the Corporate Office of the
Paying Agent in New York, New York; when used with respect to the Debt
Securities of any series payable in a Foreign Currency, means the place or
places where such Foreign Currency is the legal tender; and, when used with
respect to the Debt Securities of any series, means such other place or places,
if any, where any principal of (and premium, if any, on) or interest on the Debt
Securities of that series are payable as contemplated by Section 3.01.

                  "Pounds Sterling" or "(pound)" means the currency of the
United Kingdom.

                  "Predecessor Security" of any particular Debt Security means
every previous Debt Security evidencing all or a portion of the same debt as
that evidenced by such particular Debt Security; and, for the purposes of this
definition, any Debt Security authenticated and delivered under Section 3.06 in
lieu of a lost, destroyed or stolen Debt Security shall be deemed to evidence
the same debt as the lost, destroyed or stolen Debt Security.

                  "Principal Indexed Security" means any Debt Security
(including any Interest Indexed Security) that provides that the amount of
principal payable in respect thereof shall be determined by reference to an
index based on a currency or currencies or on the price or prices of one or more
commodities or securities, by reference to changes in the price or prices of one
or more currencies, commodities or securities or otherwise by application of a
formula.

                  "Redemption Date", when used with respect to any Debt Security
to be redeemed, means the date fixed for such redemption pursuant to this
Indenture.

                  "Redemption Price", when used with respect to any Debt
Security to be redeemed, means the price at which it is to be redeemed pursuant
to this Indenture.

                  "Register" and "Registrar" have the respective meanings
specified in Section 3.05.

                  "Registered Security" means any Debt Security in the form of
registered securities established pursuant to Section 2.02 that is registered in
the Register.

                  "Regular Record Date" for the interest payable on any Interest
Payment Date on the Debt Securities of any series means the date (whether or not
a Business Day) specified for that purpose as contemplated by Section 3.01.

                  "Responsible Officer" when used with respect to the Trustee
means any officer within the Corporate Trust department of the Trustee (or any
successor group), including any vice president, assistant vice president,
assistant secretary, assistant treasurer or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.

                  "Solvency Condition" has the meaning specified in Section
12.01(c)(i).

                  "Solvent" has the meaning specified in Section 12.01(d)(ii).

                  "Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Company pursuant to Section 3.07.

                  "Stated Maturity", when used with respect to any Debt Security
or any installment of interest thereon, means the date, if any, specified in, or
determined in accordance with the terms of, such Debt Security or a Coupon
representing such installment of interest as the fixed date on which any
principal of such Debt Security or such installment of interest is due and
payable.

                  "Subordinated Indebtedness" means any liability of the Company
however arising for the payment of money, the right to payment of which by the
Company by the terms thereof is, or is expressed to be, subordinated in the
event of a winding up of the Company to the claims of all or any of the
creditors of the Company.

                  "Taxing Jurisdiction" has the meaning specified in Section
10.04.

                  "Trust Indenture Act" means the Trust Indenture Act of 1939,
as amended by the Trust Indenture Reform Act of 1990, as in force at the date as
of which this instrument was executed; provided, however, that in the event the
Trust Indenture Act of 1939 is amended after such date, "Trust Indenture Act"
means, to the extent required by any such amendment, the Trust Indenture Act of
1939 as so amended.

                  "Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean or include each Person who is then a Trustee hereunder, and
if at any time there is more than one such Person, "Trustee" as used with
respect to the Debt Securities of any series shall mean the Trustee with respect
to the Debt Securities of such series.

                  "U.S. Government Obligations" has the meaning specified in
Section 14.02.

                  "United States" means the United States of America (including
the States thereof and the District of Columbia), its territories and
possessions and other areas subject to its jurisdiction.

                  Section 1.02. Compliance Certificates and Opinions. Upon any
application or request by the Company to the Trustee to take any action under
any provision of this Indenture, the Company shall furnish to the Trustee an
Officer's Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with
and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished. The Trustee may conclusively rely and shall be fully protected in
relying on such certificates and opinions.

                  Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture, other than certificates
provided pursuant to Section 10.05, shall include:

                  (1) a statement that each individual signing such certificate
         or opinion has read such covenant or condition and the definitions
         herein relating thereto;

                  (2) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (3) a statement that, in the opinion of each such individual,
         he has made such examination or investigation as is necessary to enable
         him to express an informed opinion as to whether or not such covenant
         or condition has been complied with; and

                  (4) a statement as to whether, in the opinion of each such
         individual, such condition or covenant has been complied with.

                  Section 1.03. Form of Documents Delivered to Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

                  Any certificate or opinion of an officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based is
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters or information which is in the possession of the
Company, upon a certificate or opinion of, or representations by, an officer or
officers of the Company with respect to such factual matters, unless such
counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters is or are
erroneous.

                  Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument.

                  Section 1.04. Acts of Holders; Record Dates. (a) Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed
by such Holders in person or by an agent duly appointed in writing or any other
evidence as the Trustee deems acceptable in its reasonable discretion or is
customary in respect of DTC. If the Debt Securities of a series are issuable in
whole or in part as Bearer Securities, any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Holders may, alternatively, be embodied in and evidenced by
the record of a meeting of Holders of Debt Securities of such series duly called
and held in accordance with the provisions of Article Fifteen, or a combination
of such instruments and any such record. Except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
or record are delivered to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments or record (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the "Act" of the Holders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent shall
be sufficient for any purpose of this Indenture and (subject to Section 6.01)
conclusive in favor of the Trustee and the Company if made in the manner
provided in this Section.

                  (b) The fact and date of the execution by any Person of any
such instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of any notary public or other officer authorized
by law to take acknowledgements of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any manner that the Trustee deems sufficient.

                  (c) The ownership of Registered Securities of any series shall
be proved by the Register with respect to such series.

                  (d) The principal or face amount and serial numbers of Bearer
Securities held by any Person, and the date of holding the same, may be proved
by the production of such Bearer Securities or by a certificate executed, as
Depositary, by any trust company, bank, banker or other Depositary, wherever
situated, if such certificate shall be deemed by the Trustee to be satisfactory,
showing that at the date therein mentioned such Person had on deposit with such
Depositary, or exhibited to it, the Bearer Securities in the amount and with the
serial numbers therein described or such facts may be proved by the certificate
or affidavit of the Person holding such Bearer Securities, if such certificate
of affidavit is deemed by the Trustee to be satisfactory. The Trustee and the
Company may assume that such ownership of any Bearer Security continues until
(1) another certificate or affidavit bearing a later date issued in respect of
the same Bearer Security is produced, or (2) such Bearer Security is produced to
the Trustee by some other Person, or (3) such Bearer Security is surrendered in
exchange for a Registered Security or (4) such Bearer Security is no longer
Outstanding.

                  (e) The fact and date of execution of any such instrument or
writing, the authority of the Person executing the same and the principal or
face amount and serial numbers of Bearer Securities held by the Person so
executing such instrument or writing and the date of holding the same may also
be proved in any other manner that the Trustee deems sufficient; and the Trustee
may in any instance require further proof with respect to any of the matters
referred to in this Section.

                  (f) If the Company shall solicit from the Holders of Debt
Securities of any series any request, demand, authorization, direction, notice,
consent, waiver or other Act, the Company may, at its option, by Board
Resolution, fix in advance a record date for the purposes of determining the
identity of Holders of Registered Securities entitled to give such request,
demand, authorization, direction, notice, consent, waiver or other Act, but the
Company shall have no obligation to do so. Any such record date shall be fixed
at the Company's discretion. If such a record date is fixed, such request,
demand, authorization, direction, notice, consent and waiver or other Act may be
sought or given before or after the record date, but only the Holders of
Registered Securities of record at the close of business on such record date
shall be deemed to be Holders of Registered Securities for the purpose of
determining whether Holders of the requisite proportion of Debt Securities of
such series Outstanding have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the Registered Securities of such series Outstanding shall be
computed as of such record date.

                  (g) Any request, demand, authorization, direction, notice,
consent, waiver or other Act of the Holder of any Debt Security shall bind every
future Holder of the same Debt Security and any Debt Security issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done, suffered or omitted by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such Debt
Security.

                  (h) For the purposes of determining the aggregate principal
amount of Outstanding Debt Securities of any series, the Holders of which are
required, requested or permitted to give any request, demand, authorization,
direction, notice, consent or waiver or take any other Act under this Indenture,
(i) each Discount Debt Security shall be deemed to have the principal amount
determined by the Trustee that could be declared to be due and payable pursuant
to the terms of such Discount Debt Security as of the date such Act is delivered
to the Trustee and, where it is hereby expressly required, to the Company, (ii)
each Principal Indexed Security shall be deemed to have a principal amount equal
to the face amount thereof and (iii) each Debt Security denominated in a Foreign
Currency shall be deemed to have the principal amount determined by the Trustee,
based upon an Exchange Rate Agent's Certificate upon which the Trustee may
conclusively rely, by converting the principal amount of such Debt Security in
the currency in which such Debt Security is denominated into Dollars at the
Exchange Rate as of the record date set with respect to such Act or, if no such
record date is set, the date such Act is delivered to the Trustee and, where it
is hereby expressly required, to the Company (or, if there is no such rate on
such date for the reasons specified in Section 3.11(d), such rate on the date
specified in such Section).

                  Section 1.05. Notices, etc., to Trustee or Company. Any
request, demand, authorization, direction, notice, consent, waiver or other Act
of Holders or other document provided or permitted by this Indenture to be made
upon, given or furnished to, or filed with,

                  (1) the Trustee by any Holder or by the Company shall be
         sufficient for every purpose hereunder if made to the Trustee at its
         Corporate Trust Office, given, furnished or filed in writing and
         mailed, first class postage prepaid, or if by the Company, via
         electronic communication such as facsimile, and followed by a hard copy
         delivered by guaranteed overnight delivery courier, or

                  (2) the Company by the Trustee or by any Holder shall be
         sufficient for every purpose hereunder (unless otherwise herein
         expressly provided) if in writing, or via telex or facsimile and
         mailed, first-class postage prepaid, or, in the case of electronic
         communication, transmitted, to the Company marked for the attention of
         the Secretary and addressed to it at the address of its principal
         office specified in the first paragraph of this instrument or at any
         other address or at any telex or facsimile number previously furnished
         in writing to the Trustee by the Company.

                  Section 1.06. Notice to Holders; Waiver. Except as otherwise
expressly provided herein, where this Indenture provides for notice to Holders
of any event, (1) such notice shall be sufficiently given to Holders of
Registered Securities if in writing and mailed, first-class postage prepaid, to
each Holder of Registered Securities affected by such event, at his address as
it appears in the Register, not later than the latest date, and not earlier than
the earliest date, prescribed for the giving of such notice and (2) such notice
shall be sufficiently given to Holders of Bearer Securities if published in an
Authorized Newspaper in The City of New York. If the Debt Securities of such
series are then admitted to the official list of the UK Listing Authority and
admitted to trading on the London Stock Exchange plc, and the UK Listing
Authority or such stock exchange shall so require, notices shall also be
published in an Authorized Newspaper in London and, if the Debt Securities of
such series are then listed on the Luxembourg Stock Exchange and such stock
exchange shall so require, in Luxembourg and, if the Debt Securities of such
series are then listed on any other stock exchange outside the United States and
such stock exchange shall so require, in any other required city outside the
United States or, if not practicable, in Europe on a Business Day at least
twice, the first such publication to be not earlier than the earliest date and
not later than the latest date prescribed for the giving of such notice. For the
avoidance of doubt, failing to put the notice in an Authorized Newspaper will
not affect the sufficiency of any notice given in accordance with the first
sentence of this Section 1.06.

                  In the event of suspension of regular mail service or if for
any other reason it shall be impracticable to give such notice to Holders of
Registered Securities by mail, then such a notification to Holders of Registered
Securities as shall be satisfactory to the Trustee shall constitute a sufficient
notification for every purpose hereunder. In any case where notice to Holders of
Registered Securities is given by mail, neither the failure to mail such notice,
nor any defect in any notice so mailed to any particular Holder of Registered
Securities shall affect the sufficiency of such notice with respect to other
Holders of Registered Securities or the sufficiency of any notice by publication
to Holders of Bearer Securities given as provided above.

                  In case by reason of the suspension of publication of any
Authorized Newspaper or Authorized Newspapers or by reason of any other cause it
shall be impracticable to publish any notice to Holders of Debt Securities
listed on such stock exchange requiring publication as provided above, then such
notification to Holders of such Debt Securities as shall be given with the
approval of the Trustee shall constitute sufficient notice to such Holders for
every purpose hereunder. Neither failure to give notice by publication to
Holders of such Debt Securities as provided above, nor any defect in any notice
so published, shall affect the sufficiency of any notice mailed to Holders of
Registered Securities as provided above.

                  Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

                  Any request, demand, authorization, direction, notice,
consent, election, waiver or other Act required or permitted under this
Indenture shall be in the English language, except that any published notice may
be in an official language of the country of publication.

Section 1.07. Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof which is required to be
included in this Indenture by any of the provisions of the Trust Indenture Act,
such required provision shall control.

                  Section 1.08. Effect of Headings and Table of Contents. The
Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

                  Section 1.09. Successors and Assigns. All covenants and
agreements in this Indenture by the Company shall bind its successors and
assigns, whether expressed or not.

                  Section 1.10. Separability Clause. In case any provision in
this Indenture or in the Debt Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

                  Section 1.11. Benefits of Indenture. Nothing in this Indenture
or in the Debt Securities, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder, any Paying Agent and the
Holders, any benefit or any legal or equitable right, remedy or claim under this
Indenture.

                  Section 1.12. Governing Law. THIS INDENTURE AND THE DEBT
SECURITIES AND COUPONS AND THE RIGHTS AND DUTIES OF THE TRUSTEE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK,
EXCEPT THAT MATTERS RELATING TO THE SUBORDINATION PROVISIONS CONTAINED IN
ARTICLE TWELVE OF THIS INDENTURE AND IN THE DEBT SECURITIES AND THE
AUTHORIZATION AND EXECUTION BY THE COMPANY OF THIS INDENTURE AND THE DEBT
SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH ENGLISH LAW.

                  Section 1.13. Legal Holidays. In any case where any Interest
Payment Date, Redemption Date, Event Date or Stated Maturity, if any, of any
Debt Security shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Indenture or of the Debt Securities
or Coupons) payment of any interest, principal (and premium, if any) need not be
made at such Place of Payment on such date, but may be made on the first
succeeding Business Day at such Place of Payment with the same force and effect
as if made on the Interest Payment Date, the Redemption Date, the Event Date or
at the Stated Maturity, and no interest shall accrue on such payment for the
period from and after such Interest Payment Date, Event Date, Redemption Date or
Stated Maturity, as the case may be.

                  Section 1.14. Immunity of Incorporators, Stockholders,
Officers and Directors. No recourse shall be had for the payment of any
principal, premium or interest in respect of any Debt Security of any series or
upon any obligation, covenant or agreement of this Indenture or any Indenture
supplemental hereto, or any Debt Security or Coupon, or because of any
indebtedness evidenced thereby, or for any claim based thereon, against any
incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor corporation, either directly or
indirectly through the Company or any predecessor or successor corporation,
whether by virtue of any constitution, statute or rule of law or by the
enforcement of any assessment or penalty or otherwise; it being expressly agreed
and understood that this Indenture and all the Debt Securities of each series
are solely corporate obligations of the Company, and that no personal liability
whatsoever shall attach to, or is incurred by, any incorporator, stockholder,
officer or director, past, present or future, of the Company or of any
predecessor or successor corporation, either directly or indirectly through the
Company or any predecessor or successor corporation, because of the incurring of
the indebtedness hereby authorized or under or by reason of any of the
obligations, covenants or agreements contained in this Indenture or in any of
the Debt Securities of any series or Coupon, or to be implied herefrom or
therefrom; and that all such personal liability is hereby expressly released and
waived as a condition of, and as part of the consideration for, the execution of
this Indenture and the issue of the Debt Securities of each series and Coupons.

                  Section 1.15. Appointment of Agent; Submission to
Jurisdiction; Waiver of Immunity. The Company has designated and appointed HSBC
Bank USA, currently having its address at 452 Fifth Avenue, New York, New York
10018-2706 (c/o Issuer Services), as its authorized agent upon which process may
be served in any suit or proceeding arising out of or relating to the Debt
Securities or Coupons appertaining thereto or this Indenture which may be
instituted in any State or Federal court in The City of New York. By the
execution and delivery of this Indenture, the Company submits to the
nonexclusive jurisdiction of any such court in any such suit or proceeding, and
agrees that service of process upon said agent, together with written notice of
said service to the Company, shall be deemed in every respect effective service
of process upon the Company, in any such suit or proceeding. The Company further
agrees to take any and all action, including the execution and filing of any and
all such documents and instruments, as may be necessary to continue such
designation and appointment of said agent in full force and effect so long as
any of the Debt Securities shall be Outstanding.

                  The Company hereby represents that HSBC Bank USA has agreed to
act as the Company's authorized agent upon which process may be served in any
such suit or proceeding.

                                  ARTICLE TWO

                            FORMS OF DEBT SECURITIES

                  Section 2.01. Forms Generally. All Debt Securities and
Coupons, if any, and the Trustee's certificate of authentication shall have such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture or by a Board Resolution and as set
forth in an Officer's Certificate or any indenture supplemental hereto and may
have such letters, numbers or other marks of identification or designation and
such legends or endorsements placed thereon as the Company may deem appropriate
and as are not inconsistent with the provisions of this Indenture, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any securities exchange on which Debt
Securities of any series may be listed or of any automated quotation system on
which such Debt Securities may be quoted, or to conform to usage.

                  The definitive Debt Securities and Coupons, if any, of each
series shall be printed, lithographed or engraved or produced by any combination
of these methods on steel engraved borders or may be produced in any other
manner permitted by the rules of any securities exchange on which Debt
Securities of such series may be listed or of any automated quotation system on
which such Debt Securities may be quoted or in any other manner deemed
appropriate by the Company, all as determined by the officers executing such
Debt Securities and Coupons, as conclusively evidenced by their execution of
such Debt Securities and Coupons.

                  Section 2.02. Form of Debt Securities. Each Debt Security
shall be substantially in one of the forms approved from time to time by or
pursuant to a Board Resolution and an Officer's Certificate or one or more
indentures supplemental hereto which shall set forth the information required by
Section 3.01. Unless otherwise provided as contemplated by Section 3.01 with
respect to the Debt Securities of any series, the Debt Securities of each series
shall be issuable in bearer form and represented by a Permanent Global Security.
If so provided as contemplated by Section 3.01, the Debt Securities of a series
shall be issuable in whole or in any part (a) in bearer form, with interest
Coupons attached, (b) in registered and bearer form or (c) in the form or one or
more Global Securities.

         Each Bearer Security and Coupon not represented by a Permanent Global
Security shall bear a legend to the following effect: "Any United States Person
who holds this obligation will be subject to limitations under the United States
income tax laws, including the limitations provided in Sections 165(j) and
1287(a) of the Internal Revenue Code."

                  Section 2.03. Form of Trustee's Certificate of Authentication.
The form of the Trustee's certificate of authentication to be borne by the Debt
Securities shall be substantially as follows:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the Debt Securities of a series issued under
the within-mentioned Indenture.

                                            The Bank of New York
                                            as Trustee

                                            By
                                              ----------------------------------
                                              Authorized Signatory

                  Section 2.04. Form of Trustee's Certificate of Authentication
by an Authenticating Agent.

                  If at any time there shall be an Authenticating Agent
appointed with respect to any series of Debt Securities, then the Trustee's
Certificate of Authentication by such Authenticating Agent to be borne by the
Debt Securities of each such series shall be substantially as follows:

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the Debt Securities of a series issued under
the within-mentioned Indenture.

                                            The Bank of New York
                  as Trustee

                                            By
                                              ----------------------------------
                  Authenticating Agent

                                            By

                  Authorized Signatory

<PAGE>
                                 ARTICLE THREE

                              THE DEBT SECURITIES

                  Section 3.01. Amount Unlimited; Issuable in Series. The
aggregate principal amount of Debt Securities that may be authenticated and
delivered under this Indenture is unlimited.

                  The Debt Securities may be issued in one or more series. There
shall be established in or pursuant to a Board Resolution, and set forth in an
Officer's Certificate, or established in one or more indentures supplemental
hereto, prior to the issuance of Debt Securities of any series:

                  (1) the title of the Debt Securities of the series (which
         shall distinguish the Debt Securities of such series from all other
         Debt Securities);

                  (2) the limit, if any, upon the aggregate principal amount of
         the Debt Securities of the series that may be authenticated and
         delivered under this Indenture (except for Debt Securities
         authenticated and delivered upon registration of transfer of, or in
         exchange for, or in lieu of, other Debt Securities of the series
         pursuant to Section 3.04, Section 3.05, Section 3.06, Section
         9.06 Section 11.06 or Section 11.07);

                  (3) the dates on which or periods during which the Debt
         Securities of the series may be issued, and the dates, if any, on
         which, or the range of dates, if any, within which, any principal (and
         premium, if any) in respect of the Debt Securities of such series is or
         may be payable or that Debt Securities of such series will be
         perpetual;

                  (4) the rate or rates, if any, or the method of determination
         thereof at which the Debt Securities of the series shall bear interest,
         if any, the date or dates, if any, from which such interest shall
         accrue, the Interest Payment Dates, if any, on which such interest
         shall be payable and in the case of Registered Securities, the Regular
         Record Dates for the interest payable on such Interest Payment Dates;

                  (5) the periods within which or the dates on which, the prices
         at which and the terms and conditions upon which Debt Securities of the
         series may be redeemed, if any, in whole or in part, at the option of
         the Company or otherwise;

                  (6) whether the Debt Securities of the series are to be issued
         as Discount Debt Securities and the amount of the discount at which
         such Discount Debt Securities may be issued;

                  (7) the place or places where any principal, premium or
         interest in respect of Debt Securities of the series shall be payable;

                  (8) whether payments are subject to a Solvency Condition;

                  (9) whether there are any other conditions to which payments
         with respect to such Debt Securities are subject;

                  (10) provisions, if any, for the discharge and defeasance of
         Debt Securities of the series;

                  (11) whether the Debt Securities of the series are to be
         issued as Registered Securities or Bearer Securities or both, and, if
         Bearer Securities are issued, whether Coupons will be attached thereto,
         whether Bearer Securities of the series may be exchanged for Registered
         Securities of the series and the circumstances under which and the
         places at which any such exchange, if permitted, may be made;

                  (12) if any Debt Securities of the series are to be issued as
         Bearer Securities or as one or more Global Debt Securities representing
         individual Bearer Securities of the series, (a) whether the provisions
         of Section 10.04 and Section 11.08 or other provisions for payment of
         additional interest or tax redemptions shall apply and, if other
         provisions shall apply, such other provisions; provided, however, that
         no such other provisions shall, without the consent of the Trustee,
         impose material additional burdens on the Trustee not contemplated by
         this Indenture; (b) whether interest in respect of any portion of a
         temporary Global Security of the series (delivered pursuant to Section
         3.04) payable in respect of any Interest Payment Date prior to the
         exchange of such temporary Global Security for a permanent Global
         Security or for a definitive Bearer Security of the series shall be
         paid to any clearing organization or other Person entitled to interest
         payable on such Interest Payment Date with respect to the portion of
         such temporary Global Security held for its account and the terms and
         conditions (including any certification requirements) upon which any
         such interest payment will be made; and (c) the terms upon which a
         temporary Global Security may be exchanged for a permanent Global
         Security or for a definitive Bearer Security of the series, provided,
         that if no terms are specified upon which a temporary Global Security
         may be exchanged for a definitive Bearer Security, such temporary
         Global Security shall, if exchangeable at all, only be exchangeable for
         a definitive Debt Security in registered form;

                  (13) whether any Debt Securities of the series are to be
         issued in whole or in part in the form of one or more Global
         Securities, provided, that if not so specified, Debt Securities shall
         be issued in whole in the form of one or more Global Securities; and,
         in the case of Debt Securities to be issued in whole in the form of one
         or more Global Securities, the Depositary for such Global Security or
         Debt Securities and the terms and conditions, if any, upon which
         interests in such Global Security or Debt Securities may be exchanged
         in whole or in part for the individual Debt Securities represented
         thereby, provided, that if no terms are specified for such exchange, a
         Global Security or Debt Security shall, if exchangeable at all, only be
         exchangeable for an individual Debt Security in registered form;

                  (14) the denominations in which Debt Securities of the series,
         if any, shall be issuable, if other than denominations as provided in
         Section 3.02;

                  (15) if other than the principal amount thereof, the portion
         of the principal amount of Debt Securities of the series that shall be
         payable upon declaration of acceleration of the Maturity thereof
         pursuant to Section 5.02;

                  (16) the currency or currencies of denomination of Debt
         Securities of the series, which may be Dollars or any Foreign Currency;

                  (17) the currency or currencies in which payment of any
         principal of (and premium, if any, on) or interest on the Debt
         Securities of the series may be made, and the currency or currencies,
         if any, in which payment of any principal of (and premium, if any, on)
         or interest on Debt Securities of the series may, at the election of
         Holders thereof, also be payable, and the Exchange Rate Agent, if any,
         designated for the Debt Securities of the series;

                  (18) if payments of any principal, premium or interest in
         respect of Debt Securities of the series may, at the election of the
         Holders, be made in a Foreign Currency other than the Foreign Currency
         in which such Debt Securities are denominated or stated to be payable,
         the periods within which, and the terms and conditions upon which, such
         election may be made and the time and the manner of determining the
         exchange rate between the currency in which such Debt Securities are
         denominated or stated to be payable and the currency in which such
         amounts are to be paid pursuant to such election;

                  (19) whether any Debt Securities of the series are to be
         issued as Indexed Securities and, if so, the manner in which the
         principal of (and premium, if any, on) or interest thereon shall be
         determined and the amount payable upon acceleration under Section 5.02
         and any other terms in respect thereof;

                  (20) any restrictive covenants provided for with respect to
         Debt Securities of the series;

                  (21) any other Events of Default;

                  (22) whether the Debt Securities of the series shall be
         convertible or exchangeable at the option of the Company for any other
         securities to be delivered by the Company pursuant to Article Thirteen
         (any such exchange being referred to herein as the "Exchange" and any
         such conversion being referred to herein as the "Conversion"; the date
         of such exchange or conversion being referred to as the "Event Date";
         the securities to be delivered by the Company in exchange for such Debt
         Securities being referred to as "Exchange Securities" and the
         securities to be delivered by the Company upon the conversion of such
         Debt Securities being referred to as "Conversion Securities") and, if
         so, the nature of the Exchange Securities or Conversion Securities, as
         the case may be, and any additional or other provisions relating to
         such Exchange or Conversion; and

                  (23) any other terms of the series (which terms shall not
         adversely affect any prior series of Debt Securities or be inconsistent
         with the provisions of the Trust Indenture Act).

                  All Debt Securities of any one series and the Coupons
appertaining to Bearer Securities of such series, if any, shall be substantially
identical except as may otherwise be provided in or pursuant to such Board
Resolution and set forth in such Officer's Certificate or provided in or
pursuant to any such indenture supplemental hereto. All Debt Securities of any
one series need not be issued at the same time and, unless otherwise provided, a
series may be reopened for issuance of additional Debt Securities of such
series.

                  If any of the terms of the Debt Securities of a series are
established by action taken pursuant to a Board Resolution, a copy of an
appropriate record of such action shall be certified by the appropriate officer
of the Company and delivered to the Trustee at or prior to the delivery of the
Officer's Certificate setting forth the terms of such Debt Securities.

Section 3.02. Denominations. Unless otherwise provided as contemplated by
Section 3.01 with respect to the Debt Securities of any series and except as
provided in Section 3.03, the Registered Securities of each series, if any,
shall be issuable in denominations of $1,000, (euro)1,000 or (pound)1,000 and
any integral multiple thereof and the Bearer Securities of each series, if any,
shall be issuable in denominations of $1,000, $10,000 and $100,000; (euro)1,000,
(euro)10,000 and (euro)100,000 or (pound)1,000, (pound)10,000 and
(pound)100,000.

                  Section 3.03. Execution, Authentication, Delivery and Dating.

                  (a) The Debt Securities and the Coupons appertaining thereto
shall be executed on behalf of the Company by an authorized officer. Such
signature and the attestation, if any, to the affixing of the seal may be in the
form of facsimile signature of any present or any future authorized officer and
may be imprinted or otherwise reproduced on the Debt Securities. The Company may
adopt and use the signatures or facsimile signatures of the persons who shall be
authorized signatories of the Company at the time of execution of the Debt
Securities and any Coupons appertaining thereto, irrespective of the date as of
which the same shall be executed, or of any person who shall have been an
authorized officer of the Company, notwithstanding the fact that at the time the
Debt Securities shall be authenticated and delivered or disposed of such person
shall have ceased to be an authorized officer as the case may be.

                  (b) At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver one or more Debt Securities
of any series executed by the Company to the Trustee or the Authenticating Agent
for authentication, together with a Company Order for the authentication and
delivery of such Debt Securities, and the Trustee or the Authenticating Agent in
accordance with the Company Order shall authenticate and deliver such Debt
Securities provided, however, that, in connection with its original issuance, a
Bearer Security not represented by a Permanent Global Security may be delivered
only outside the United States; and provided further that, in connection with
the original issuance of any Bearer Security other than a temporary Global
Security or a Permanent Global Security, unless otherwise delivered by the
Company on advice of counsel, neither the Company nor its agent shall deliver
any Bearer Security unless the Company or its agent receives from the person
entitled to delivery of such Bearer Security a certificate substantially in the
form set forth in Exhibit A hereto, dated as of the date of such delivery, and
neither the Company nor its agent has any reason to know that such certificate
is false. If the Company shall establish pursuant to Section 3.01 that the Debt
Securities of any series may be originally issued from time to time, the Trustee
or the Authenticating Agent shall authenticate and deliver Debt Securities of
such series for original issue from time to time in accordance with such
procedures acceptable to the Trustee as may be specified from time to time by
Company Order. Such procedures may authorize authentication and delivery
pursuant to written instructions or instructions via electronic communication
such as telex or facsimile confirmed in writing by guaranteed delivery overnight
courier from the Company or its duly authorized agent. The Trustee shall be
entitled to receive, prior to the authentication and delivery of the Debt
Securities of any series, the supplemental indenture or the Board Resolution by
or pursuant to which the terms and form of such Debt Securities have been
approved (and, if such form is approved pursuant to a Board Resolution, the
Officer's Certificate approving such terms and form), an Officer's Certificate
as to the absence of any event that is, or after notice or lapse of time or both
would become, an Event of Default, and, if requested by the Trustee, an Opinion
of Counsel stating that:

                  (1) all instruments furnished by the Company to the Trustee in
         connection with the authentication and delivery by the Trustee of such
         Debt Securities and Coupons, if any, conform to the requirements of
         this Indenture and constitute sufficient authority hereunder for the
         Trustee to authenticate and deliver such Debt Securities;

                  (2) the forms of such Debt Securities and Coupons, if any,
         have been established in conformity with the provisions of this
         Indenture;

                  (3) the terms of such Debt Securities and Coupons, if any,
         have been established in conformity with the provisions of this
         Indenture;

                  (4) in the event that the forms or terms of such Debt
         Securities and Coupons, if any, have been established in a supplemental
         indenture, the execution and delivery of such supplemental indenture by
         the Company has been duly authorized by all necessary corporate action
         of the Company, such supplemental indenture has been duly executed and
         delivered by the Company and, assuming that the Trustee has satisfied
         those legal requirements that are applicable to it to the extent
         necessary to make such supplemental indenture enforceable against it,
         is a legal, valid, binding and enforceable agreement of the Company,
         subject to applicable bankruptcy, insolvency and similar laws affecting
         creditors' rights generally, and subject, as to enforceability, to
         general principles of equity (regardless of whether enforcement is
         sought in a proceeding in equity or at law);

                  (5) the execution and delivery of such Debt Securities and
         Coupons, if any, have been duly authorized by all necessary corporate
         action of the Company and such Debt Securities and Coupons, if any,
         have been duly executed by the Company and, assuming due authentication
         by the Trustee (or the Authenticating Agent, as the case may be) and
         delivery by the Company are the legal, valid, binding and enforceable
         obligations of the Company entitled to the benefits of the Indenture,
         subject to applicable bankruptcy insolvency and similar laws affecting
         creditors' rights generally and subject, as to enforceability, to
         general principles of equity (regardless of whether enforcement is
         sought in a proceeding in equity or at law); and

                  (6) such other matters as the Trustee may reasonably request.

                  Notwithstanding any contrary provision herein, if the Company
shall establish pursuant to Section 3.01 that the Debt Securities of a series
may be originally issued from time to time, it shall not be necessary to deliver
the Board Resolution, Officer's Certificate and Opinion of Counsel otherwise
required pursuant to this Section or Section 1.02 at or prior to the time of
authentication of each Debt Security of such series if such documents are
delivered at or prior to the authentication upon original issuance of the first
Debt Security of such series to be issued but the Trustee shall be entitled to
request and receive copies thereof.

                  (c) Unless the Company specifies pursuant to Section 3.01 that
the Debt Securities of a series will be made available in definitive bearer
form, such Debt Securities shall be issued in the form of one or more Global
Securities in permanent form, and the Company shall execute and the Trustee or
the Authenticating Agent shall, in accordance with this Section and the Company
Order with respect to such series, authenticate and deliver one or more Global
Securities that (i) shall represent and shall be denominated in an aggregate
amount equal to the aggregate principal amount (or, in the case of any Principal
Indexed Security, face amount) of the Outstanding Debt Securities of such series
to be represented by one or more Global Securities and (ii) if in registered
form, shall be registered in the name of the Depositary for such Global Security
or Debt Securities or the nominee of such Depositary and be delivered by the
Trustee to such Depositary or pursuant to such Depositary's instruction; if in
bearer form, shall be delivered to and held by the Depositary in accordance with
the Debt Security Deposit Agreement, dated o.

                  (d) The Trustee shall have the right to decline to
authenticate and deliver any Debt Security under this Section if the Trustee,
upon the advice of counsel, determines that such action may not lawfully be
taken or if the Trustee, by a committee of Responsible Officers, shall determine
in good faith that the authentication and delivery of such Debt Security would
be unjustly prejudicial to Holders of Outstanding Debt Securities.

                  (e) Each Debt Security shall be dated the date of its
authentication.

                  (f) No Debt Security or Coupon attached thereto shall be
entitled to any benefit under this Indenture or be valid or obligatory for any
purpose unless there appears on such Debt Security a certificate of
authentication substantially in the form provided for herein duly executed by
the Trustee by manual signature of one of its authorized signatories, and such
certificate of authentication upon any Debt Security shall be conclusive
evidence, and the only evidence, that such Debt Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this
Indenture. Except as permitted by Section 3.05 or Section 3.06, neither the
Trustee nor the Authenticating Agent shall authenticate and deliver any Bearer
Security unless all appurtenant Coupons for interest then matured have been
detached and cancelled.

                  Section 3.04. Temporary Debt Securities. If so provided
pursuant to Section 3.01, pending the preparation of a permanent Global Security
or definitive Debt Securities of any series, the Company may execute, and upon
Company Order the Trustee or the Authenticating Agent shall authenticate and
deliver, temporary Debt Securities that are printed, lithographed, typewritten,
photocopied or otherwise produced, in any authorized denomination, substantially
of the tenor of the definitive Debt Securities in lieu of which they are issued,
in registered form or, if authorized, in bearer form with one or more Coupons or
without Coupons, and with such appropriate insertions, omissions, substitutions
and other variations as the officers executing such Debt Securities and Coupons
may determine to be appropriate, as conclusively evidenced by their execution of
such Debt Securities and Coupons. In the case of Debt Securities of any series,
such temporary Debt Securities may be in global form, representing all or a
portion of the Outstanding Debt Securities of such series.

                  If temporary Debt Securities of any series are issued, the
Company will cause definitive Debt Securities of such series to be prepared
without unreasonable delay. Except as otherwise specified as contemplated by
Section 3.01(12) with respect to a series of Debt Securities issuable as Bearer
Securities or as one or more Global Debt Securities representing individual
Bearer Securities of the series, (i) after the preparation of definitive Debt
Securities of such series, the temporary Debt Securities of such series shall be
exchangeable for definitive Debt Securities of such series upon surrender of the
temporary Debt Securities of such series at the office or agency of the Company
in a Place of Payment for such series, without charge to the Holder, except as
provided in Section 3.05 in connection with a transfer and except that a Person
receiving definitive Bearer Securities shall bear the cost of insurance,
postage, transportation and the like unless otherwise specified pursuant to
Section 3.01, and (ii) upon surrender for cancellation of any one or more
temporary Debt Securities of any series (accompanied by any unmatured Coupons
appertaining thereto), the Company shall execute and the Trustee or the
Authenticating Agent shall authenticate and deliver in exchange therefor a like
principal amount (or, in the case of any Principal Indexed Security, face
amount), in any authorized denomination or denominations, of definitive Debt
Securities of the same series and of like tenor; provided, however, that no
definitive Bearer Security shall be delivered in exchange for a temporary
Registered Security; and provided further that neither a permanent Global
Security in bearer form nor a definitive Bearer Security shall be delivered in
exchange for a temporary Bearer Security unless the Company or its agent
receives a certificate substantially in the form set forth in Exhibit A hereto,
dated as of the date of such exchange, unless such certificate has previously
been provided pursuant to the provisions of the next succeeding paragraph; and
provided further that delivery of a Bearer Security not represented by a
Permanent Global Security shall occur only outside the United States; and
provided further that neither a permanent Global Security in bearer form nor a
definitive Bearer Security will be issued if the Company or its agent has reason
to know that such certificate is false. Until so exchanged, the temporary Debt
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Debt Securities of such series except as
otherwise specified pursuant to Section 3.01 with respect to the payment of any
interest on Debt Securities in temporary form.

                  If any Interest Payment Date with respect to a temporary Debt
Security in bearer form shall occur prior to the exchange described in the
preceding paragraph, any interest payable on such Interest Payment Date shall be
paid only upon the delivery of a certificate substantially in the form set forth
in Exhibit A hereto, dated as of the date the related payment of interest is
made.

                  Upon any exchange of a portion of a temporary Global Security
for a definitive Global Security or for the individual Debt Securities
represented thereby pursuant to this Section 3.04 or Section 3.05, the temporary
Global Security shall be endorsed by the Registrar to reflect the reduction of
the principal amount (or, in the case of any Principal Indexed Security, face
amount) evidenced thereby, whereupon the principal amount (or, in the case of
any Principal Indexed Security, face amount) of such temporary Global Security
shall be reduced for all purposes by the amount so exchanged and endorsed.

                  Section 3.05. Registration, Registration of Transfer and
Exchange. The Company shall cause to be kept a register (herein sometimes
referred to as the "Register") in which, subject to such reasonable regulations
as the Company may prescribe, the Company shall provide for the registration of
Registered Securities and of transfers of Registered Securities. HSBC Bank USA
is hereby appointed "Registrar" for the purpose of registering Debt Securities
and transfers of Debt Securities as herein provided. Unless and until otherwise
determined by the Company, HSBC Bank USA shall act as Registrar and the Register
shall be kept at the office of the Registrar at 452 Fifth Avenue, New York, New
York 10018-2706 (c/o Issuer Services). Such Register shall be in written form or
in any other form capable of being converted into written form within a
reasonable period of time. At all reasonable times the Register shall be open
for inspection by the Company and its duly authorized agents.

                  Upon surrender for registration of transfer of any Registered
Security of any series at the office or agency of the Company maintained for
such purpose (the "Registration Office"), the Company shall execute, and the
Trustee or the Authenticating Agent shall authenticate and deliver, in the name
of the designated transferee or transferees, one or more new Registered
Securities of such series, of like tenor and aggregate principal amount (or, in
the case of any Principal Indexed Security, face amount), in any authorized
denomination or denominations.

                  At the option of the Holder, Registered Securities of any
series (other than a Global Security, except as set forth below) may be
exchanged for other Registered Securities of such series of like tenor and
aggregate principal amount (or, in the case of any Principal Indexed Security,
face amount), in any authorized denomination or denominations, upon surrender of
the Registered Securities to be exchanged at the Registration Office. Bearer
Securities may not be delivered by the Trustee, the Authenticating Agent or the
Registrar in exchange for Registered Securities.

                  At the option of the Holder, except as otherwise specified
pursuant to Section 3.01(11) or Section 3.01(13), Bearer Securities of any
series may be exchanged for Registered Securities (if the Debt Securities of
such series are issuable as Registered Securities) or (in the case of Bearer
Securities not represented by a Permanent Global Security) Bearer Securities (if
Bearer Securities of such series are issuable in more than one denomination) of
such series of like tenor and aggregate principal amount (or, in the case of any
Principal Indexed Security, face amount), in any authorized denomination or
denominations, upon surrender of the Bearer Securities to be exchanged at the
Registration Office, with all unmatured Coupons and all matured Coupons in
default or unpresented thereto appertaining; provided, however, that delivery of
a Bearer Security shall occur only outside the United States. If the Holder of a
Bearer Security is unable to produce any such unmatured Coupon or Coupons or
matured Coupon or Coupons in default or unpresented, such exchange may be
effected if the Bearer Securities are accompanied by payment in funds acceptable
to the Company and the Registrar in an amount equal to the face amount of such
missing Coupon or Coupons, or the surrender of such missing Coupon or Coupons
may be waived by the Company and the Registrar if there be furnished to them
such security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder of such Bearer Security shall
surrender to any Paying Agent any such missing Coupon in respect of which such a
payment shall have been made, such Holder shall be entitled to receive the
amount of such payment; provided, however, that, except as otherwise provided in
Section 10.02, interest represented by Coupons shall be payable only upon
presentation and surrender of those Coupons at an office or agency located
outside the United States. Notwithstanding the foregoing, in case a Bearer
Security of any series is surrendered at the Registration Office in exchange for
a Registered Security of the same series after the close of business at the
Registration Office on (i) any Regular Record Date and before the opening of
business at the Registration Office on the relevant Interest Payment Date or
(ii) any Special Record Date and before the opening of business at the
Registration Office on the related date for payment of Defaulted Interest, such
Bearer Security shall be surrendered without the Coupon relating to such
Interest Payment Date or proposed date of payment, as the case may be.

                  Whenever any Debt Securities are so surrendered for exchange,
the Company shall execute, and the Trustee or the Authenticating Agent shall
authenticate and deliver, the Debt Securities that the Holder making the
exchange is entitled to receive.

                  The Company's express election pursuant to Section 3.01(13)
(if any) shall no longer be effective with respect to the Debt Securities of
such series if at any time (1) (i) the Depositary for the Debt Securities of a
series notifies the Company in writing that it is unwilling or unable to
continue as Depositary for the Debt Securities of such series and a successor
Depositary is not appointed by the Company within 90 days of such notification,
(ii) DTC notifies the Depositary that it is unwilling or unable to continue to
hold interests in the Debt Securities or (iii) DTC is unable to or ceases to be
eligible as a clearing agency registered under the Exchange Act and a successor
to DTC registered under the Exchange Act is not appointed by the Depositary at
the written request of the Company within 90 days or (2) an Event of Default has
occurred and is continuing and the Registrar has received a request from the
Depositary. In any such event the Company will execute, and the Trustee or the
Authenticating Agent, upon receipt of a Company Order for the authentication and
delivery of definitive Debt Securities of such series, will authenticate and
deliver, definitive Debt Securities of such series or any portion thereof in an
aggregate principal amount (or, in the case of any Principal Indexed Security,
face amount) equal to the aggregate principal amount (or, in the case of any
Principal Indexed Security, face amount) of the Global Security or Debt
Securities representing such series or portion thereof in exchange for such
Global Security or Debt Securities.

                  The Company may at any time and in its sole discretion
determine that Debt Securities of any series issued in whole or in part in the
form of one or more Global Securities shall no longer be represented by such
Global Security or Global Securities. In such event the Company will execute,
and the Trustee, upon receipt of a Company Order for the authentication and
delivery of definitive Debt Securities of such series, will authenticate and
deliver, definitive Debt Securities of such series in an aggregate principal
amount (or, in the case of any Principal Indexed Security, face amount) equal to
the aggregate principal amount (or, in the case of any Principal Indexed
Security, face amount) of the Global Security or Debt Securities representing
such series or portion thereof in exchange for such Global Security or Debt
Securities.

                  Unless otherwise specified by the Company pursuant to Section
3.01 with respect to the Debt Securities of any series, the Depositary for such
series may surrender a Global Security representing Debt Securities of such
series or any portion thereof in exchange in whole or in part for definitive
Debt Securities of such series on such terms as are acceptable to the Company
and such Depositary. Thereupon, the Company shall execute, and the Trustee or
the Authenticating Agent shall authenticate and deliver such Debt Securities to
the Registrar. In turn, the Registrar shall deliver such Debt Securities,
without service charge,

                  (i) to each Person specified by such Depositary a new
         definitive Debt Security or Debt Securities of such series, of like
         tenor and in an aggregate principal amount (or, in the case of any
         Principal Indexed Security, face amount) equal to and in exchange for
         such Person's beneficial interest in the Global Security, in any
         authorized denomination or denominations; and

                  (ii) to such Depositary a new Global Security in a
         denomination equal to the difference, if any, between the principal
         amount (or, in the case of any Principal Indexed Security, face amount)
         of the surrendered Global Security and the aggregate principal amount
         (or, in the case of any Principal Indexed Security, face amount) of the
         definitive Debt Securities delivered to such Persons.

                  In any exchange provided for in any of the preceding two
paragraphs, the Company will execute and the Trustee or the Authenticating Agent
will authenticate and deliver Debt Securities (i) in definitive registered form
in authorized denominations, if the Debt Securities of such series are issuable
as Registered Securities, (ii) in definitive bearer form in authorized
denominations with or without Coupons attached, as applicable, if the Debt
Securities of such series are issuable as Bearer Securities or (iii) as either
Registered Securities or Bearer Securities, if the Debt Securities of such
series are issuable in either form; provided, however, that no definitive Bearer
Security shall be delivered in exchange for a temporary Global Security unless
the Company or its agent shall have received from the person entitled to receive
the definitive Bearer Security a certificate substantially in the form set forth
in Exhibit A hereto; and provided further that delivery of a Bearer Security
shall occur only outside the United States; and provided further that no
definitive Bearer Security will be issued if the Company has reason to know that
such certificate is false.

                  Upon the exchange in whole of a Global Security for the
definitive Debt Securities represented thereby, such Global Security shall be
cancelled by the Trustee or delivered to the Trustee for cancellation.
Registered Securities issued in exchange for a Global Security or any portion
thereof pursuant to this Section shall be registered in such names and in such
authorized denominations as the Depositary for such Global Security shall
instruct the Trustee and the Registrar. The Registrar shall deliver such
Registered Securities to the Persons in whose names such Registered Securities
are so registered.

                  The Registrar shall deliver Bearer Securities issued in
exchange for a Global Security or any portion thereof pursuant to this Section
to the Persons, and in such authorized denominations, as the Depositary for such
Global Security, shall instruct the Registrar; provided, however, that no
definitive Bearer Security shall be delivered in exchange for a temporary Global
Security unless the Company or its agent shall have received from the person
entitled to receive the definitive Bearer Security a certificate substantially
in the form set forth in Exhibit A hereto; and provided further that delivery of
a Bearer Security shall occur only outside the United States; and provided
further that no definitive Bearer Security will be issued if the Company has
reason to know that such certificate is false.

                  Notwithstanding any other provision in this Indenture, unless
express provision is made otherwise under Section 3.01 hereof, Global Notes
shall, if exchangeable at all, only be exchangeable, in whole or in part, for
definitive Debt Securities in registered form.

                  Interests in a Permanent Global Security may be exchanged for
definitive Registered Securities of the same series if the Holder of such
Permanent Global Security notifies the Company in writing that the owner of a
beneficial interest in such Permanent Global Security has requested in writing
to the Holder, in accordance with the instructions of the Holder, that
definitive Registered Securities be issued to such owner in respect thereof. In
such event the Company will execute, and the Trustee or the Authenticating
Agent, upon receipt of a Company Order for the authentication and delivery of
definitive Registered Securities of such series will authenticate and deliver
such definitive Registered Securities. Any such definitive Registered Securities
so issued shall be registered in the name of such Person or Persons as the
Holder shall instruct the Trustee and the Registrar in writing. Upon the
exchange in whole or in part of a Permanent Global Security for definitive
Registered Securities in corresponding aggregate principal amount, such
Permanent Global Security shall be delivered to the Trustee for cancellation, in
the case of an exchange in whole, or reduction, in the case of an exchange in
part.

                  All Debt Securities issued upon any registration of transfer
or exchange of Debt Securities shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Debt Securities surrendered upon such registration of transfer
or exchange.

                  Every Registered Security presented or surrendered for
registration of transfer or for exchange shall be duly endorsed by, or be
accompanied by a written instrument of transfer in form satisfactory to the
Company, the Registrar and the Trustee duly executed by, the Holder thereof or
his attorney duly authorized in writing.

                  No service charge shall be made for any registration of
transfer or exchange of Debt Securities, but the Company may require payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer, registration of transfer or exchange of
Debt Securities, other than exchanges pursuant to Section 3.04, Section 11.06 or
Section 11.07 not involving any transfer.

                  Neither the Company, the Trustee or the Authenticating Agent,
as appropriate, shall be required (i) during the period beginning at the opening
of business 15 days before the day on which a notice of redemption of Debt
Securities of any series selected for redemption under Section 11.04 is mailed
and ending at the close of business on the day of such mailing, to issue,
register the transfer of or exchange any Registered Security of such series
having the same original issue date and terms as the Debt Securities so selected
for redemption or (ii) to register the transfer of or exchange any Registered
Security so selected for redemption in whole or in part, except the unredeemed
portion of any Registered Security being redeemed in part, or (iii) to exchange
any Bearer Security so selected for redemption except that such a Bearer
Security may be exchanged for a Registered Security of that series (if the Debt
Securities of such series are issuable as Registered Securities), provided that
such Registered Security shall be immediately surrendered for redemption with
written instructions for payment consistent with the provisions of this
Indenture.

                  Section 3.06. Mutilated, Destroyed, Lost and Stolen Debt
Securities. If (i) any mutilated Debt Security or a Bearer Security with a
mutilated Coupon appertaining to it is surrendered to the Trustee or (ii) the
Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Debt Security or Coupon, and there is
delivered to the Company and the Trustee such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of notice
to the Company or the Trustee that such Debt Security or Coupon has been
acquired by a bona fide purchaser, the Company shall execute, and upon its
written request the Trustee or the Authenticating Agent shall authenticate and
deliver, in exchange for any such mutilated Debt Security or a Bearer Security
with a mutilated Coupon appertaining to it or to which a destroyed, lost or
stolen Coupon appertains (with all appurtenant Coupons not destroyed, lost or
stolen) or in lieu of any such destroyed, lost or stolen Debt Security, a new
Debt Security of the same series and of like tenor and aggregate principal
amount (or, in the case of any Principal Indexed Security, face amount), bearing
a number not contemporaneously outstanding, with Coupons corresponding to the
Coupons, if any, appertaining to such destroyed, lost or stolen Debt Security or
to the Debt Security to which such destroyed, lost or stolen Coupon appertains;
provided, however, that delivery of a Bearer Security shall occur only outside
the United States.

                  In case any such mutilated, destroyed, lost or stolen Debt
Security or Coupon has become or is about to become due and payable, the Company
in its discretion may, instead of issuing a new Debt Security, pay such Debt
Security or Coupon; provided, however, that payment of any principal of (and
premium, if any, on) or interest on Bearer Securities not represented by a
Permanent Global Security shall, except as otherwise provided in Section 10.02,
be payable only at an office or agency located outside the United States; and
provided further that, with respect to any such Coupon, interest represented
thereby (but not any additional amount payable as provided in Section 10.04)
shall be payable only upon presentation and surrender of the Bearer Security to
which such Coupon appertains.

                  Upon the issuance of any new Debt Security or Coupon under
this Section, the Company may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and
any other expenses (including the fees and expenses of the Trustee) connected
therewith.

                  Every new Debt Security of any series, with its Coupons, if
any, issued pursuant to this Section in lieu of any destroyed, lost or stolen
Debt Security, or in exchange for a Bearer Security to which a destroyed, lost
or stolen Coupon appertains shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Debt
Security and its Coupons, if any, shall be at any time enforceable by anyone,
and any such new Debt Security and its Coupons, if any, or the destroyed, lost
or stolen Coupon shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Debt Securities of that series and
their Coupons, if any, duly issued hereunder.

                  The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Debt
Securities or Coupons.

                  Section 3.07. Payment of Interest; Interest Rights Preserved.
Interest, if any, in respect of any Registered Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be paid
to the Person in whose name that Debt Security (or one or more Predecessor Debt
Securities) is registered at the close of business on the Regular Record Date
for such interest. In case a Bearer Security of any series is surrendered in
exchange for a Registered Security of such series after the close of business
(at an office or agency in a Place of Payment for such series) on any Regular
Record Date and before the opening of business (at such office or agency) on the
next succeeding Interest Payment Date, such Bearer Security shall be surrendered
without the Coupon relating to such Interest Payment Date and interest will not
be payable on such Interest Payment Date in respect of the Registered Security
issued in exchange for such Bearer Security, but will be payable only to the
Holder of such Coupon when due in accordance with the provisions of this
Indenture.

                  Payment of interest, if any, in respect of any Registered
Security or any Permanent Global Security may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Register, or by wire transfer or transfer by any other means to an account
designated in writing by such Person to the Paying Agent at least 15 days prior
to such payment date or by any other means specified pursuant to Section 3.01.

                  Interest in respect of any Bearer Security with Coupons that
is payable and is punctually paid or duly provided for on any Interest Payment
Date shall be paid to the Holder of the Coupon that has matured on such Interest
Payment Date upon surrender of such Coupon on such Interest Payment Date at the
Place of Payment outside the United States specified pursuant to Section 3.01.
                  Interest, if any, in respect of any Bearer Security without
Coupons that is payable and is punctually paid or duly provided for on any
Interest Payment Date shall be paid to the Holder of the Bearer Security upon
presentation of such Bearer Security and notation thereon on such Interest
Payment Date at the Place of Payment outside the United States specified
pursuant to Section 3.01.

                  Any interest in respect of Registered Securities or any
Permanent Global Security of any series that is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date (herein called
"Defaulted Interest") shall forthwith cease to be payable to the Holders thereof
on the relevant Regular Record Date by virtue of their having been such Holders;
and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

                  (1) The Company may elect to make payment of such Defaulted
         Interest to the Persons in whose names such Registered Securities (or
         their respective Predecessor Debt Securities) are registered at the
         close of business on a Special Record Date for the payment of such
         Defaulted Interest, which shall be fixed in the following manner. The
         Company shall notify the Paying Agent and the Trustee in writing of the
         amount of Defaulted Interest proposed to be paid on each such
         Registered Security and the date of the proposed payment, and at the
         same time the Company shall deposit with the Paying Agent an amount of
         money equal to the aggregate amount proposed to be paid in respect of
         such Defaulted Interest or shall make arrangements satisfactory to the
         Trustee and the Paying Agent for such deposit prior to the date of the
         proposed payment, such money when deposited to be held in trust for the
         benefit of the Persons entitled to such Defaulted Interest as in this
         clause provided and shall fix a Special Record Date for the payment of
         such Defaulted Interest, which shall be not more than 15 days and not
         less than 10 days prior to the date of the proposed payment and not
         less than 10 days after the receipt by the Trustee and the Paying Agent
         of the notice of the proposed payment. Unless the Trustee is acting as
         the Registrar, promptly after such Special Record Date, the Company
         shall furnish the Trustee with a list, or shall make arrangements
         satisfactory to the Trustee with respect thereto, of the names and
         addresses of, and respective principal amounts (or, in the case of any
         Principal Indexed Security, face amount) of such Registered Securities
         held by, the Holders appearing on the Register at the close of business
         on such Special Record Date. In the name and at the expense of the
         Company, the Trustee shall cause notice of the proposed payment of such
         Defaulted Interest and the Special Record Date therefor to be mailed,
         first-class postage prepaid, to each Holder of such Registered
         Securities at his address as it appears in the Register, not less than
         10 days prior to such Special Record Date. Notice of the proposed
         payment of such Defaulted Interest and the Special Record Date therefor
         having been mailed as aforesaid, such Defaulted Interest shall be paid
         to the Persons in whose names such Registered Securities (or their
         respective Predecessor Debt Securities) are registered at the close of
         business on such Special Record Date and shall no longer be payable
         pursuant to the following clause (2). In case a Bearer Security of any
         series is surrendered at the office or agency in a Place of Payment for
         such series in exchange for a Registered Security of such series after
         the close of business at such office or agency on any Special Record
         Date and before the opening of business at such office or agency on the
         related proposed date for payment of Defaulted Interest, such Bearer
         Security shall be surrendered without the Coupon relating to such
         proposed date of payment, and Defaulted Interest will not be payable on
         such proposed date of payment in respect of the Registered Security
         issued in exchange for such Bearer Security, but will be payable only
         to the Holder of such Coupon when due in accordance with the provisions
         of this Indenture.

                  (2) The Company may make payment of any Defaulted Interest on
         Registered Securities of any series or any Permanent Global Security in
         any other lawful manner not inconsistent with the requirements of any
         securities exchange on which such Registered Securities may be listed,
         and upon such notice as may be required by such exchange, if, after
         notice given by the Company to the Trustee of the proposed payment
         pursuant to this clause, such manner of payment shall be deemed
         practicable by the Trustee.

                  Subject to the foregoing provisions of this Section, each Debt
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Debt Security shall carry the rights to
interest, if any, accrued and unpaid, and to accrue, that were carried by such
other Debt Security.

                  Section 3.08. Persons Deemed Owners. Prior to due presentment
of a Registered Security for registration of transfer, the Company, the Trustee,
the Registrar and the Paying Agent and any agent of the Company, the Trustee,
the Registrar or the Paying Agent may treat the Person in whose name such
Registered Security is registered as the owner of such Registered Security for
the purpose of receiving payment of any principal, premium or (subject to
Section 3.07) interest in respect of such Registered Security and for all other
purposes whatsoever, whether or not such Registered Security be overdue, and
neither the Company, the Trustee, the Registrar, the Paying Agent nor any agent
of the Company, the Registrar, the Paying Agent or the Trustee shall be affected
by notice to the contrary.

                  The Company, the Trustee and any agent of the Company or the
Trustee shall treat the bearer of any Bearer Security and the bearer of any
Coupon as the absolute owner of such Bearer Security or Coupon for the purpose
of receiving payment thereof or on account thereof and for all other purposes
whatsoever, whether or not such Bearer Security or Coupon be overdue, and
neither the Company or the Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the contrary.

                  None of the Company, the Trustee, any Paying Agent or the
Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests in any Global Security or Permanent Global Security or for
maintaining, supervising or reviewing any records relating to such payments or
beneficial ownership interests.

Section 3.09. Cancellation. Unless otherwise specified pursuant to Section 3.01
above with respect to the Debt Securities of any series, all Debt Securities and
Coupons surrendered for payment, redemption, registration of transfer or
exchange shall, if surrendered to any Person other than the Trustee, be promptly
cancelled and delivered to the Trustee. The Company may at any time deliver to
the Trustee for cancellation any Debt Securities previously authenticated and
delivered hereunder that the Company may have acquired in any manner whatsoever,
and all Debt Securities so delivered shall be promptly cancelled by the Trustee.
No Debt Securities shall be authenticated in lieu of or in exchange for any Debt
Securities cancelled as provided in this Section, except as expressly permitted
by this Indenture. All cancelled Debt Securities and Coupons held by the Trustee
shall be destroyed and certification of their destruction delivered to the
Company unless by a Company Order the Company shall direct that the cancelled
Debt Securities or Coupons be returned to it.

                  Section 3.10. Computation of Interest. Except as otherwise
specified as contemplated by Section 3.01 with respect to the Debt Securities of
any series, any interest on the Debt Securities of each series, which is not
denominated in Euro, shall be computed on the basis of a 360-day year of twelve
30-day months. Interest on Debt Securities of each series denominated in Euro
will be computed on the basis of the actual number of days in the calculation
period divided by 365 (or, if any portion of that calculation period falls in a
leap year, the sum of (a) the actual number of days in that portion of the
calculation period falling in a leap year, divided by 366 and (b) the actual
number of days in that portion of the calculation period falling in a non-leap
year, divided by 365).

                  Section 3.11. Payment in Currencies. (a) Payment of any
principal (and premium, if any) or interest in respect of the Debt Securities of
any series shall be made in the currency or currencies specified pursuant to
Section 3.01 with respect to the Debt Securities of such series; provided that,
if so specified pursuant to Section 3.01, the Holder of such series may elect to
receive such payment in Dollars or in any other currency designated for such
purpose pursuant to Section 3.01. A Holder may make such election by delivering
to the Paying Agent (with a copy to the Trustee) a written notice thereof,
substantially in the form attached hereto as Exhibit B or in such other form as
may be acceptable to the Paying Agent, not later than the close of business on
the Regular Record Date or Special Record Date immediately preceding the
applicable Interest Payment Date or the fifteenth day immediately preceding the
Maturity, if any, of any principal, as the case may be. Such election shall
remain in effect with respect to such Holder until such Holder delivers to the
Paying Agent (with a copy to the Trustee), a written notice substantially in the
form attached hereto as Exhibit B or in such other form as may be acceptable to
the Paying Agent specifying a change in the currency in which such payment is to
be made; provided that any such notice must be delivered to the Paying Agent
(with a copy to the Trustee) not later than the close of business on the Regular
Record Date or Special Record Date immediately preceding the next Interest
Payment Date or the fifteenth day immediately preceding the Maturity, if any, of
any principal, as the case may be, in order to be effective for the payment to
be made thereon; and provided further that no such change in currency may be
made with respect to payments to be made on any Registered Security with respect
to which notice of redemption has been given by the Company pursuant to Article
Eleven.

                  (b) Except as otherwise specified pursuant to Section 3.01
with respect to the Debt Securities of any series, the Paying Agent shall
deliver to the Company, the Trustee and the Exchange Rate Agent, if any, not
later than the fourth Business Day after the Regular Record Date or Special
Record Date with respect to an Interest Payment Date or the tenth day
immediately preceding the Maturity, if any, of any principal, as the case may
be, with respect to Debt Securities of any series, a written notice specifying,
in the currency or currencies in which such Debt Securities are denominated, the
aggregate amount of any principal (and premium, if any) or interest or such Debt
Securities to be paid on such payment date. If payments on any such Debt
Securities are designated to be made in a currency other than the currency in
which such Debt Securities are denominated, or if at least one Holder of a
Registered Security has made the election referred to in Subsection (a) above
with respect to such Debt Securities, then the written notice referred to in the
preceding sentence shall also specify, in each currency in which payment with
respect to such Debt Securities is to be made pursuant to said Subsection (a),
the amount of any principal, premium or interest in respect of such Debt
Securities to be paid in such currency on such payment date; provided that for
purposes of such written notice, the Trustee shall be entitled to rely on any
exchange rate information provided to it in writing or via electronic
communication such as telex or facsimile by the Exchange Rate Agent.

                  (c) The Exchange Rate Agent shall deliver, not later than the
sixth Business Day following each Regular Record Date or Special Record Date or
the fifth day immediately preceding the Maturity, if any, of any principal, as
the case may be, to the Trustee, the Paying Agent and the Company an Exchange
Rate Agent's Certificate in respect of the Dollar or Foreign Currency payments
to be made on such payment date. Except as otherwise specified pursuant to
Section 3.01 with respect to the Debt Securities of any series, the amount
receivable by Holders of Registered Securities of any series who have elected
payment as provided in Subsection (a) above in a currency other than the
currency in which such Registered Securities are denominated shall be determined
by the Exchange Rate Agent on the basis of the applicable Exchange Rate set
forth in the applicable Exchange Rate Agent's Certificate.

                  (d) Except as otherwise specified pursuant to Section 3.01
with respect to the Debt Securities of any series, if the Foreign Currency in
which Registered Securities of any series are denominated ceases to be used both
by the government of the country issuing such Foreign Currency and for the
settlement of transactions by public institutions of or within the international
banking community, then, with respect to each date for the payment of any
principal (and premium, if any) or interest in respect of such Debt Securities
and any Coupons appertaining thereto occurring after the final date on which
such Foreign Currency was so used, all payments in respect of such Debt
Securities and any Coupons appertaining thereto shall be made in Dollars;
provided that payment to a Holder of such a Registered Security shall be made in
a different Foreign Currency if that Holder has elected or elects payment in
such Foreign Currency as provided for by Subsection (a) above. If payment is to
be made in Dollars to Holders of any such Debt Securities or Coupons pursuant to
the provisions of the preceding sentence, then the amount to be paid in Dollars
on a payment date by the Company to the Paying Agent (who shall promptly notify
the Trustee) and by the Paying Agent (who shall promptly notify the Trustee) to
such Holders shall be determined by the Paying Agent (who shall promptly notify
the Trustee of such determinations) as of the Regular Record Date or Special
Record Date with respect to such Interest Payment Date or the fifteenth day
immediately preceding the Maturity, if any, of any principal, as the case may
be, and shall be equal to the sum obtained by converting the specified Foreign
Currency into Dollars at the Exchange Rate on the last such Record Date on which
such Foreign Currency was so used in either such capacity.

                  (e) All decisions and determinations of the Paying Agent
regarding conversion of any Foreign Currency into Dollars pursuant to Subsection
(d) above or as specified pursuant to Section 3.01 with respect to the Debt
Securities of any series shall, in the absence of manifest error, be conclusive
for all purposes and irrevocably binding upon the Company and all Holders of the
Debt Securities. If a Foreign Currency in which payment in respect of Debt
Securities of any series may be made, pursuant to Subsection (a) above, ceases
to be used both by the government of the country issuing such currency and for
the settlement of transactions by public institutions of or within the
international banking community, the Company after learning thereof will give
notice thereof to the Trustee and the Paying Agent immediately (and the Paying
Agent promptly thereafter will give notice to the Holders of such Debt
Securities in the manner provided in Section 1.06) specifying the last date on
which such Foreign Currency was used for the payment of any principal, premium
or interest in respect of such Debt Securities. The Trustee and the Paying Agent
shall be fully justified and protected in relying conclusively and acting upon
the information so received by it from the Company and shall not otherwise have
any duty or obligation to determine such information independently.

                  Section 3.12. Certification by a Person Entitled to Delivery
of a Bearer Security. Whenever any provision of this Indenture or a Debt
Security contemplates that certification be given by a Person entitled to
delivery of a Bearer Security, such certification shall be provided
substantially in the form of Exhibit A hereto as such form may be modified
pursuant to a Board Resolution, with only such changes as shall be approved by
the Company.

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

                  Section 4.01. Satisfaction and Discharge. If so specified
pursuant to Section 3.01, this Indenture, with respect to the Debt Securities of
any series payable only in Dollars (if all series of Debt Securities issued
under this Indenture are not to be affected) shall upon Company Request cease to
be of further effect (except as to any surviving rights of registration of
transfer or exchange of such Debt Securities herein expressly provided for) and
the Trustee, at the expense of the Company, shall execute proper instruments, in
a form satisfactory to the Company and the Trustee, acknowledging satisfaction
and discharge of this Indenture, when

                  (1) either

                    (A) all Debt Securities of such series theretofore
               authenticated and delivered and all Coupons appertaining thereto
               (other than (i) Coupons appertaining to Bearer Securities
               surrendered in exchange for Registered Securities and maturing
               after such exchange, surrender of which is not required or has
               been waived as provided in Section 3.05, (ii) Debt Securities and
               Coupons of such series that have been destroyed, lost or stolen
               and that have been replaced or paid as provided in Section 3.06,
               (iii) Coupons appertaining to Bearer Securities of such series
               called for redemption and maturing after the relevant Redemption
               Date, surrender of which has been waived as provided in Section
               11.06 and (iv) Debt Securities and Coupons of such series for
               whose payment money has theretofore been deposited in trust or
               segregated and held in trust by the Company and thereafter repaid
               to the Company or discharged from such trust, as provided in
               Section 10.03) have been delivered to the Trustee for
               cancellation; or

                    (B) all such Debt Securities of such series not theretofore
               delivered to the Trustee for cancellation

                         (i)  have become due and payable,

                         (ii) will become due and payable at their Stated
                    Maturity, if any, within one year, or

                         (iii) are to be called for redemption, Exchange or
                    Conversion within one year under arrangements satisfactory
                    to the Trustee for the giving of notice of redemption by the
                    Trustee in the name, and at the expense, of the Company,

                    and the Company, in the case of (i), (ii) or (iii) above,
                    has irrevocably deposited or caused to be deposited with the
                    Trustee as trust funds in trust for the purpose (i) Dollars
                    in an amount, (ii) U.S. Government Obligations that through
                    payment of interest and principal in respect thereof in
                    accordance with their terms will provide, not later than the
                    due date of any payment in an amount or (iii) any
                    combination of (i) and (ii) in an amount sufficient to pay
                    and discharge the entire indebtedness on such Debt
                    Securities and Coupons for any principal (and premium, if
                    any) or interest to the date of such deposit (in the case of
                    Debt Securities and Coupons which have become due and
                    payable) or to the Stated Maturity or Redemption Date or
                    Event Date, as the case may be;

                  (2) the Company has paid or caused to be paid all other sums
         payable hereunder by the Company in respect of the Debt Securities of
         such series; and

                  (3) the Company has delivered to the Trustee an Officer's
         Certificate and, if the Trustee so requests, an Opinion of Counsel each
         stating that all conditions precedent herein provided for relating to
         the satisfaction and discharge of this Indenture have been complied
         with.

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 6.07 and, if money shall
have been deposited with the Trustee pursuant to Subclause (B) of Clause (1) of
this Section, the obligations of the Trustee under Section 4.02 and the last
paragraph of Section 10.03 shall survive. The Company's rights and obligations
under this Section 4.01 shall be subject to the consent of the Financial
Services Authority, if required.

                  Section 4.02. Application of Trust Money. Subject to the
provisions of the last paragraph of Section 10.03, all money deposited with the
Trustee pursuant to Section 4.01 shall be held in trust and applied by it, in
accordance with the provisions of the Debt Securities, the Coupons and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent), to the Persons entitled
thereto, of any principal (and premium, if any) and interest, if any, for which
payment such money has been deposited with the Trustee.

                                  ARTICLE FIVE

                                    REMEDIES

                  Section 5.01. Events of Default. Unless otherwise specified
pursuant to Section 3.01 "Event of Default", wherever used herein with respect
to Debt Securities of any series, means any one of the following events:

                  (i) the making or entry of any order by an English court which
         is not successfully appealed within 30 days after the date such order
         was made or entered for the winding up of the Company, or

                  (ii) the valid adoption by the shareholders of the Company, of
         any effective resolution for the winding up of the Company in either
         case other than in connection with a scheme of amalgamation or
         reconstruction not involving bankruptcy or insolvency.

                  Section 5.02. Acceleration of Maturity; Rescission and
Annulment. If an Event of Default with respect to Debt Securities of any series
at the time Outstanding occurs and is continuing, then in every such case the
Trustee may, or if so requested by the Holders of not less than 25% in principal
amount of the Outstanding Debt Securities of that series, shall declare the
principal amount (or such other amount as is specified pursuant to Section 3.01)
together with the accrued but unpaid interest (or in the case of Discount Debt
Securities, the accreted face amount together with accrued interest, if any, or,
in the case of Indexed Securities, the amount specified pursuant to Section
3.01) of all of the Debt Securities of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) shall become immediately due and payable.

                  At any time after such a declaration of acceleration with
respect to Debt Securities of any series has been made and before a judgment or
decree for payment of the money due has been obtained by the Trustee as
hereinafter in this Article provided, the Holders of a majority in principal
amount of the Outstanding Debt Securities of that series, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its
consequences if:

                  (1) the Company has paid or deposited with the Trustee a sum
         sufficient to pay:

                    (A) the principal of (and premium, if any, on) any Debt
               Securities of such series which have become due and payable
               otherwise than by such declaration of acceleration and any due
               and payable interest, and overdue interest, if any, thereon at
               the rate or rates prescribed therefor in such Debt Securities;
               and

                    (B) all sums paid or advanced by the Trustee hereunder and
               the reasonable compensation, expenses, disbursements and advances
               of the Trustee, its agents and counsel; and

                  (2) all Events of Default with respect to the Debt Securities
         of such series have been remedied.

No such rescission shall affect any subsequent default or impair any right
consequent thereon.

                  Section 5.03. Defaults; Collection of Indebtedness and Suits
for Enforcement by Trustee. Unless otherwise provided and contemplated pursuant
to Section 3.01 with respect to the Debt Securities of any series, "Default",
wherever used herein, means any one of the following events (whatever the reason
for such Default and whether it shall be voluntary or involuntary or be effected
by operation of law pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

                  (1) the Company fails to pay any interest upon any Debt
         Security or any related Coupon and such default continues for 14 days;
         or

                  (2) the Company fails to pay the principal of (or premium, if
         any, on) any Debt Security of any series at its Maturity and such
         failure is continued for seven days;

                  provided that, if the Company does not pay any installment of
interest on the pertinent Interest Payment Date or all or any part of principal
at Maturity, the obligation to make such payment and such Interest Payment Date
or Maturity, as the case may be, shall be deferred until (i) in the case of a
payment of interest, the date upon which a dividend is paid on any class of
share capital of the Company and (ii) in the case of a payment of principal, the
first Business Date after the date that falls six months after the original
Maturity. Failure by the Company to make any such payment prior to such deferred
Interest Payment Date or Maturity shall not constitute a default by the Company
or otherwise allow any Holder to sue the Company for such payment or to take any
other action. Any payment so deferred shall not be treated as due for any
purpose (including, without limitation, for the purposes of ascertaining whether
or not a Default has occurred) until the deferred Interest Payment Date or
Maturity, as the case may be.

                  If a Default occurs, the Trustee may, to enforce the
obligations of the Company, institute proceedings in England (but not elsewhere)
for the winding up of the Company, provided that the Trustee may not, upon the
occurrence of a Default, unless an Event of Default has occurred and is
continuing, accelerate the Maturity of any of the Outstanding Debt Securities.

                  Notwithstanding the foregoing, failure to make any payment in
respect of the Debt Securities shall not be a Default in respect of such Debt
Securities if such payment is withheld or refused, (i) in order to comply with
any fiscal or other law or regulation or with the order of any court of
competent jurisdiction, in each case applicable to such payment or (ii) in case
of doubt as to the validity or applicability of any such law, regulation or
order, in accordance with advice given with respect to validity or applicability
of such law, regulation or order at any time during said period of 14
Days (in the case of payments under Clause (1) above) or seven Days (in
the case of payments under Clause (2) above) by independent legal advisers
acceptable to the Trustee, provided, however, that the Trustee may by notice to
the Company require the Company to take such action (including but not limited
to proceedings for a declaration by a court of competent jurisdiction) as the
Trustee may be advised in an opinion of counsel, upon which opinion the Trustee
may conclusively rely, is appropriate and reasonable in the circumstances to
resolve such doubt, in which case the Company shall forthwith take and
expeditiously proceed with such action and shall be bound by any final
resolution of the doubt resulting therefrom. If any such resolution determines
that the relevant payment can be made without violating any applicable law,
regulation or order then the provisions of the preceding sentence shall cease to
have effect and such payment shall become due and payable on the expiration of
14 Business Days (in the case of payments under Clause (1) above) or seven
Business Days (in the case of payments under Clause (2) above) after the Trustee
gives written notice to the Company informing it of such resolution.

                  Section 5.04. Trustee May File Proofs of Claim. In case of any
judicial proceeding relative to the Company or any other obligor upon the Debt
Securities of a particular series or any related Coupons or the property of the
Company or of such other obligor or their creditors, the Trustee (irrespective
of whether any principal in respect of such Debt Securities shall then be due
and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Trustee shall have made any demand on the Company for the payment
of any overdue principal or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

                  (i) to file and prove a claim for the whole amount of any
         principal (and premium, if any) or interest owing and unpaid with
         respect to the Debt Securities of such series and any appurtenant
         Coupons and to file such other papers or documents as may be necessary
         or advisable in order to have the claims of the Trustee (including any
         claim for the reasonable compensation, expenses, disbursements and
         advances of the Trustee, its agents and counsel) and of the Holders
         allowed in such judicial proceeding, and

                  (ii) to collect and receive any moneys or other property
         payable or deliverable on any such claims and to distribute the same;

and any receiver, assignee, trustee, custodian, liquidator, sequestrator (or
other similar official) in any such proceeding is hereby authorized by each
Holder to make such payments to the Trustee, and in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 6.07.

                  Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment or composition affecting the
Debt Securities or Coupons or the rights of any Holder thereof or to authorize
the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

                  The provisions of this Section 5.04 are subject to the
provisions of Article Twelve.

                  Section 5.05. Trustee May Enforce Claims Without Possession of
Debt Securities or Coupons. All rights of action and claims under this
Indenture or the Debt Securities or Coupons may be prosecuted and enforced by
the Trustee without the possession of any of the Debt Securities or Coupons or
the production thereof in any proceeding relating thereto, and any such
proceeding instituted by the Trustee shall be brought in its own name, as
trustee of an express trust, and any recovery of judgment shall, after provision
for the payment of the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Debt Securities and Coupons in respect of which such judgment
has been recovered.

                  Section 5.06. Application of Money Collected. Any money
collected by the Trustee pursuant to this Article shall, subject to the
provisions of Article Twelve, be applied in the following order, at the date or
dates fixed by the Trustee and, in case of the distribution of such money on
account of any principal, premium or interest, upon presentation of the Debt
Securities or any Coupons, or both, as the case may be, and the notation thereon
of the payment if only partially paid and upon surrender thereof if fully paid:

                  FIRST: To the payment of all amounts due to the Trustee under
         Section 6.07;

                  SECOND: To the payment of the amounts then due and unpaid for
         any principal of (and premium, if any, on) or interest on the series of
         Debt Securities and any appurtenant Coupons, in respect of which or for
         the benefit of which such money has been collected, ratably, without
         preference or priority of any kind, according to the amounts due and
         payable on such series of Debt Securities and any appurtenant Coupons
         for any principal (and premium, if any) or interest, respectively; and

                  THIRD: The balance, if any, to the Company or other Person or
         Persons entitled thereto.

                  Section 5.07. Limitation on Suits. No Holder of any Debt
Security of any series and any appurtenant Coupons shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:

                  (1) such Holder has previously given written notice to the
         Trustee of a continuing Event of Default or Default with respect to the
         Debt Securities of such series;

                  (2) the Holders of not less than a majority in aggregate
         principal amount (or, in the case of any Principal Indexed Security,
         face amount) of the Outstanding Debt Securities of such series have
         made written request to the Trustee to institute proceedings in respect
         of such Event of Default in its own name as Trustee hereunder;

                  (3) such Holder or Holders have offered to the Trustee
         indemnity satisfactory to the Trustee against the costs, expenses and
         liabilities to be incurred in compliance with such request;

                  (4) the Trustee for 60 days after its receipt of such notice,
         request and offer of indemnity has failed to institute any such
         proceeding; and

                  (5) no direction inconsistent with such written request has
         been received by the Trustee during such 60-day period from the Holders
         of a majority in aggregate principal amount (or, in the case of any
         Principal Indexed Security, face amount) of the Outstanding Debt
         Securities of such series;

it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other such
Holders, or to obtain or to seek to obtain priority or preference over any other
of such Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all of such
Holders.

                  Section 5.08. Unconditional Right of Holders to Receive Any
Principal, Premium and Interest. Notwithstanding any other provision in this
Indenture, the Holder of any Debt Security or Coupon shall have the absolute and
unconditional right to receive payment of any principal of (and premium, if any,
on) or (subject to Section 3.07) interest on such Debt Security or payment of
such Coupon on the respective Stated Maturity or Maturities, if any, expressed
in such Debt Security or Coupon (or, in the case of redemption or exchange, on
the Redemption Date or the Event Date, as the case may be) and to institute suit
for the enforcement of any such payment, and such right shall not be impaired
without the consent of such Holder.

                  Section 5.09. Restoration of Rights and Remedies. If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case the Company, the Trustee and the
Holders shall, subject to any determination in such proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.

                  Section 5.10. Rights and Remedies Cumulative. Except as
otherwise provided in Section 6.01, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

                  Section 5.11. Delay or Omission Not Waiver. No delay or
omission of the Trustee or of any Holder of any Debt Security or Coupon to
exercise any right or remedy accruing upon any Event of Default or Default shall
impair any such right or remedy or constitute a waiver of any such Event of
Default or Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from
time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

                  Section 5.12. Control by Holders of Debt Securities. The
Holders of a majority in aggregate principal amount (or, in the case of any
Principal Indexed Security, face amount) of the Outstanding Debt Securities of
any series shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee with respect to the Debt Securities
of such series, provided that

                  (1) such direction shall not be in conflict with any rule of
         law or with this Indenture;

                  (2) subject to the provisions of Section 6.01, the Trustee
         shall have the right to decline to follow any such direction if the
         Trustee in good faith shall, by a Responsible Officer or Responsible
         Officers of the Trustee, determine that the proceeding so directed
         would be unjustly prejudicial to the Holders of Debt Securities of such
         series not joining in any such direction; and

                  (3) the Trustee may take any other action deemed proper by the
         Trustee, which is not inconsistent with such direction.

                  Section 5.13. Waiver of Past Defaults. The Holders of not less
than a majority in aggregate principal amount (or, in the case of any Principal
Indexed Security, face amount) of the Outstanding Debt Securities of any series
may, on behalf of the Holders of all the Debt Securities of any such series and
any related Coupons, waive any past event of default or any past default
hereunder with respect to such series and its consequences, except a default

                  (1) in the payment of any principal of (or premium, if any,
         on) or any installment of interest or related deferred payment on any
         Debt Security of such series, or

                  (2) in respect of a covenant or provision hereof that under
         Article Nine cannot be modified or amended without the consent of the
         Holder of each Outstanding Debt Security affected thereby.

                  Upon any such waiver, such default shall cease to exist, and
any Event of Default or Default arising therefrom shall be deemed to have been
cured, for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other default or impair any right consequent thereon.

                  Section 5.14. Undertaking for Costs. All parties to this
Indenture agree, and each Holder of any Debt Security or Coupon by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in principal
amount (or, in the case of any Principal Indexed Security, face amount) of the
Outstanding Debt Securities of any series, or to any suit instituted by any
Holder for the enforcement of the payment of any principal of (or premium, if
any, on) or interest on any Debt Security or the payment of any Coupon on or
after the respective Stated Maturity or Maturities, if any, expressed in such
Debt Security or Coupon (or, in the case of redemption or Exchange or Conversion
on or after the Redemption Date or the Event Date, as the case may be).

                                  ARTICLE SIX

                                   THE TRUSTEE

                  Section 6.01. Certain Duties and Responsibilities.

                  (a) With respect to Debt Securities of any series, except
during the continuance of an Event of Default or Default with respect to the
Debt Securities of such series,

                  (1) the Trustee undertakes to perform such duties and only
         such duties as are specifically set forth in this Indenture, and no
         implied covenants or obligations shall be read into this Indenture
         against the Trustee; and

                  (2) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture; but in the case of any such certificates or opinions
         which by any provisions hereof are specifically required to be
         furnished to the Trustee, the Trustee shall be under a duty to examine
         the same to determine whether or not they conform to the requirements
         of this Indenture (but need not confirm or investigate the accuracy of
         mathematical calculations or other facts stated therein).

                  (b) In case an Event of Default or Default with respect to
Debt Securities of any series or any appurtenant Coupons has occurred and is
continuing, the Trustee shall, with respect to the Debt Securities of such
series or any appurtenant Coupons, as the case may be, exercise such of the
rights and powers vested in it by this Indenture, and use the same degree of
care and skill in their exercise, as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs.

                  (c) No provision of this Indenture shall be construed to
relieve the Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that

                  (1) this Subsection shall not be construed to limit the effect
         of Subsection (a) of this Section;

                  (2) the Trustee shall not be liable for any error of judgment
         made in good faith by a Responsible Officer, unless it shall be proved
         that the Trustee was negligent in ascertaining the pertinent facts; and

                  (3) the Trustee shall not be liable with respect to any action
         taken, suffered or omitted to be taken by it with respect to Debt
         Securities of any series in good faith in accordance with the direction
         of the Holders of a majority in aggregate principal amount of the
         Outstanding Debt Securities of such series relating to the time, method
         and place of conducting any proceeding for any remedy available to the
         Trustee, or exercising any trust or power conferred upon the Trustee,
         under this Indenture.

                  (d) No provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

                  (e) Notwithstanding any other provision of this Indenture,
under no circumstances shall the Trustee be deemed to have fiduciary obligations
with respect to any Person including, without limitation, Ordinary Creditors,
other than Holders of Debt Securities, as and to the extent provided in this
Indenture.

                  (f) Whether or not therein expressly so provided, every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of
this Section.

                  Section 6.02. Notice of Defaults. As soon as practicable after
the receipt of a Deferral Notice and within 90 days after the occurrence of any
Event of Default or Default hereunder with respect to Debt Securities of any
series the Trustee shall give to Holders of Debt Securities of such series in
the manner set forth in Section 1.06 notice of each such Deferral Notice, Event
of Default or Default hereunder known to the Trustee, unless in the case of
notice regarding an Event of Default or Default such Event of Default or Default
shall have been cured or waived; provided, that the Trustee shall be protected
in withholding notice of a Default or an Event of Default if and so long as the
board of directors, the executive committee or a trust committee of directors
and/or Responsible Officers of the Trustee reasonably determines that the
withholding of such notice is in the interest of the Holders of Debt Securities
of such series.

                  Section 6.03. Certain Rights of Trustee. Except as otherwise
provided in Section 6.01:

                  (a) the Trustee may conclusively rely and shall be fully
protected in acting or refraining from acting upon, whether in original or
facsimile form, any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note,
Coupon or other evidence of indebtedness or other paper or document believed by
it to be genuine and to have been signed or presented by the proper party or
parties;

                  (b) any request or direction of the Company mentioned herein
shall be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors shall be sufficiently evidenced by a Board
Resolution;

                  (c) whenever in the administration of this Indenture the
Trustee shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless other
evidence be herein specifically prescribed) may, in the absence of bad faith on
its part, rely upon an Officer's Certificate;

                  (d) the Trustee may consult with counsel of its selection and
the advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon;

                  (e) the Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders of Debt Securities of such series or any related
Coupons pursuant to this Indenture, unless such Holders shall have offered to
the Trustee reasonable security or indemnity satisfactory to the Trustee against
the costs, expenses and liabilities that might be incurred by it in compliance
with such request or direction;

                  (f) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, Coupon, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company personally or
by agent or attorney at the sole cost of the Company and shall incur no
liability or additional liability of any kind by reason of such inquiry or
investigation;

                  (g) the Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys and the Trustee shall not be responsible for any misconduct
or negligence on the part of any agent or attorney appointed with due care by it
hereunder;

                  (h) the Trustee shall not be deemed to have notice of any
Default or Event of Default unless a Responsible Officer of the Trustee has
actual knowledge thereof or unless written notice of any event which is in fact
such a default is received by the Trustee at the Corporate Trust Office of the
Trustee, and such notice references the Debt Securities and this Indenture;

                  (i) the rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, and to each agent, custodian and other Person
employed to act hereunder; and

                  (j) the Trustee may request that the Company deliver an
Officer's Certificate setting forth the names of individuals and/or titles of
officers authorized at such time to take specified actions pursuant to this
Indenture, which Officer's Certificate may be signed by any person authorized to
sign an Officer's Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded.

                  Section 6.04. Not Responsible for Recitals or Issuance of Debt
Securities. The recitals contained herein and in the Debt Securities, except the
Trustee's certificates of authentication, and in any Coupons shall be taken as
the statements of the Company and the Trustee assumes no responsibility for
their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Debt Securities of any series or of any
Coupons. The Trustee shall not be accountable for the use or application by the
Company or any Paying Agent of any Debt Securities or the proceeds thereof.

                  Section 6.05. May Hold Debt Securities or Coupons. The
Trustee, any Paying Agent, the Registrar or any other agent of the Company, in
its individual or any other capacity, may become the owner or pledgee of Debt
Securities and Coupons, and, subject to Section 6.08 and Section 6.13, may
otherwise deal with the Company with the same rights it would have if it were
not Trustee, Paying Agent, Registrar or such other agent.

                  Section 6.06. Money Held in Trust. Money held by the Trustee
in trust hereunder need not be segregated from other funds except to the extent
required by law, except that the Trustee shall segregate moneys, funds and
accounts held by the Trustee in one currency or currency unit from any moneys,
funds or accounts in any other currencies or currency units. The Trustee shall
be under no liability for interest on any money received by it hereunder except
as otherwise agreed with the Company.

                  Section 6.07. Compensation and Reimbursement. The Company
agrees:

                  (1) to pay to the Trustee from time to time such compensation
         for all services rendered by it hereunder as the parties shall agree
         from time to time (which compensation shall not be limited by any
         provision of law in regard to the compensation of a trustee of an
         express trust);

                  (2) except as otherwise expressly provided herein, to
         reimburse the Trustee upon its request for all reasonable expenses,
         disbursements and advances incurred or made by the Trustee in
         accordance with any provision of this Indenture (including the
         reasonable compensation and the reasonable expenses and disbursements
         of its agents and counsel), except any such expense, disbursement or
         advance as may be attributable to its negligence or willful misconduct;
         and

                  (3) to indemnify each of the Trustee and any predecessor
         Trustee and their agents for, and to hold it harmless against, any
         loss, liability, claim, damage or expense incurred without negligence
         or bad faith on its part, arising out of or in connection with the
         acceptance or administration of this trust or performance of its duties
         hereunder, including the reasonable costs and expenses of defending
         itself against any claim or liability in connection with the exercise
         or performance of any of its powers or duties hereunder.

                  As security for the performance of the obligations of the
Company under this Section, the Trustee shall have a claim prior to the Debt
Securities and any Coupons upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the payment of any principal
(and premium, if any) or interest in respect of any Debt Securities or Coupons.

                  The accrued obligations of the Company under this Section 6.07
to compensate and indemnify the Trustee for expenses, losses, liabilities,
disbursements and advances shall survive the termination, satisfaction and
discharge of the Indenture, including any termination under any applicable
bankruptcy or similar law or the removal or resignation of the Trustee.

                  Section 6.08. Disqualification; Conflicting Interests. If the
Trustee has or shall acquire a conflicting interest within the meaning of the
Trust Indenture Act, the Trustee shall either eliminate such interest or resign,
to the extent and in the manner provided by, and subject to the provisions of,
the Trust Indenture Act and this Indenture.

                  Section 6.09. Corporate Trustee Required; Eligibility. There
shall at all times be a Trustee hereunder that shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such and has a combined
capital and surplus of at least $50,000,000. If such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of a
Federal, State, District of Columbia or foreign supervising or examining
authority, then for the purposes of this Section the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

                  Section 6.10. Resignation and Removal; Appointment of
Successor. No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee under Section 6.11.

                  The Trustee may resign at any time with respect to the Debt
Securities of one or more series by giving written notice thereof to the
Company. If an instrument of acceptance by a successor Trustee shall not have
been delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Debt
Securities of such series.

                  The Trustee may be removed at any time with respect to the
Debt Securities of any series by Act of the Holders of a majority in aggregate
principal amount of the Outstanding Debt Securities of such series, delivered to
the Trustee and the Company.

                  If at any time:

                  (1) the Trustee shall fail to comply with Section 6.08 with
         respect to the Debt Securities of any series after written request
         therefor by the Company or by any Holder who has been a bona fide
         Holder of a Debt Security of such series for at least six months, or

                  (2) the Trustee shall cease to be eligible under Section 6.09
         and shall fail to resign after written request therefor by the Company
         or by any such Holder, or

                  (3) the Trustee shall become incapable of acting or a decree
         or order for relief by a court having jurisdiction in the premises
         shall have been entered in respect of the Trustee in an involuntary
         case under the Federal bankruptcy laws, as now or hereafter
         constituted, or any other applicable Federal or State bankruptcy,
         insolvency or similar law; or a decree or order by a court having
         jurisdiction in the premises shall have been entered for the
         appointment of a receiver, custodian, liquidator, assignee, trustee,
         sequestrator (or other similar official) of the Trustee or of its
         property or affairs, or any public officer shall take charge or control
         of the Trustee or of its property or affairs for the purpose of
         rehabilitation, conservation, winding up or liquidation, or

                  (4) the Trustee shall commence a voluntary case under the
         Federal bankruptcy laws, as now or hereafter constituted, or any other
         applicable Federal or State bankruptcy, insolvency or similar law or
         shall consent to the appointment of or taking possession by a receiver,
         custodian, liquidator, assignee, trustee, sequestrator (or other
         similar official) of the Trustee or its property or affairs, or shall
         make an assignment for the benefit of creditors, or shall admit in
         writing its inability to pay its debts generally as they become due, or
         shall take corporate action in furtherance of any such action,

then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all Debt Securities or (ii) subject to Section 5.14, any
such Holder may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee for
the Debt Securities of such series and the appointment of a successor Trustee.

                  If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Debt Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Debt Securities of that or those series (it being understood that any
such successor Trustee may be appointed with respect to the Debt Securities of
one or more or all of such series and that at any time there shall be only one
Trustee with respect to the Debt Securities of any particular series) and shall
comply with the applicable requirements of Section 6.11. If within one year
after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee with respect to the Debt Securities of any series
shall be appointed by Act of the Holders of a majority in aggregate principal
amount of the Outstanding Debt Securities of such series delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment, become the successor Trustee
with respect to the Debt Securities of such series, and, to that extent,
supersede the successor Trustee appointed by the Company. If no successor
Trustee with respect to the Debt Securities of any series shall have been so
appointed by the Company or the Holders and shall have accepted appointment in
the manner hereinafter provided, the Trustee or any Holder who has been a bona
fide Holder of a Debt Security of such series for at least six months may,
subject to Section 5.14, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Debt Securities of such series.

                  The Company shall give notice of each resignation and each
removal of the Trustee with respect to the Debt Securities of any series and
each appointment of a successor Trustee with respect to the Debt Securities of
any series by mailing written notice of such event by first-class mail, postage
prepaid, to the Holders of Registered Securities, if any, of such series as
their names and addresses appear in the Register and, if Debt Securities of such
series are issuable as Bearer Securities, by publishing notice of such event
once in an Authorized Newspaper in each Place of Payment located outside the
United States. Each notice shall include the name of the successor Trustee with
respect to the Debt Securities of such series and the address of its Corporate
Trust Office.

                  Section 6.11. Acceptance of Appointment by Successor. In the
case of an appointment hereunder of a successor Trustee with respect to all Debt
Securities, every such successor Trustee so appointed shall execute, acknowledge
and deliver to the Company and to the retiring Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee; but, on request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee, and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder.

                  In case of the appointment hereunder of a successor Trustee
with respect to the Debt Securities of one or more (but not all) series, the
Company, the retiring Trustee upon payment of its charges and each successor
Trustee with respect to the Debt Securities of the relevant series shall execute
and deliver an indenture supplemental hereto wherein each successor Trustee
shall accept such appointment and which (1) shall contain such provisions as
shall be necessary or desirable to transfer to and vest in each successor
Trustee all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Debt Securities of that or those series to which the appointment
of such successor Trustee relates, (2) if the retiring Trustee is not retiring
with respect to all Debt Securities, shall contain such provisions as shall be
deemed necessary or desirable to confirm that all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Debt Securities of that or
those series as to which the retiring Trustee is not retiring shall continue to
be vested in the retiring Trustee and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee; and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Debt Securities of that or those
series to which the appointment of such successor Trustee relates; but, on
request of the Company or any successor Trustee, such retiring Trustee shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder with respect to the Debt
Securities of that or those series to which the appointment of such successor
Trustee relates.

                  Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts referred
to in this Section.

                  No successor Trustee shall accept its appointment unless at
the time of such acceptance such successor Trustee shall be qualified and
eligible under this Article.

                  Section 6.12. Merger, Conversion, Consolidation or Succession
to Business. Any corporation into which the Trustee may be merged or converted
or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Debt Securities shall have been
authenticated but not delivered by the Trustee then in office, any successor by
merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Debt Securities so authenticated with the
same effect as if such successor Trustee had itself authenticated such Debt
Securities. In case any Debt Securities shall not have been authenticated by
such predecessor Trustee, any such successor Trustee may authenticate and
deliver such Debt Securities, in either its own name or that of such predecessor
Trustee, with the full force and effect that this Indenture provides for the
certificate of authentication of the Trustee.

                  Section 6.13. Preferential Collection of Claims Against
Company. If and when the Trustee shall be or become a creditor of the Company
(or any other obligor upon the Debt Securities of a series), the Trustee shall
be subject to the provisions of the Trust Indenture Act regarding the collection
of claims against the Company (or any such other obligor).

                  Section 6.14. Appointment of Authenticating Agent. Upon a
Company Request, the Trustee may appoint an authenticating agent with respect to
the Debt Securities of one or more series (the "Authenticating Agent"), for such
period as the Company shall elect, which will be authorized to act as the
Trustee's agent on the Trustee's behalf to authenticate and deliver the Debt
Securities of such series. Debt Securities of such series authenticated by such
Authenticating Agent shall be entitled to the benefits of this Indenture and
shall be valid and obligatory for all purposes as if authenticated by the
Trustee. Wherever reference is made in this Indenture to the authentication and
delivery of Debt Securities of any series by the Trustee or to the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by the Authenticating Agent
for such series or the certificate of authentication executed on behalf of such
Trustee by such Authenticating Agent, as the case may be. Such Authenticating
Agent shall at all times meet the eligibility requirements for the Trustee set
forth in Section 6.09.

                  Any corporation into which any Authenticating Agent may be
merged or converted, or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which any
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency business of any Authenticating Agent, shall continue to be the
Authenticating Agent with respect to all series of Debt Securities for which it
served as Authenticating Agent without the execution or filing of any paper or
any further act on the part of the Company, the Trustee or such Authenticating
Agent. Any Authenticating Agent may at any time, and if it shall cease to be
eligible shall, resign with respect to the Debt Securities of one or more series
by giving written notice of resignation to the Trustee and the Company. The
Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of such termination to such Authenticating Agent and the
Company.

                  Upon receiving such a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section with respect to the
Debt Securities of one or more series, the Trustee shall upon Company Request
appoint a successor Authenticating Agent, and the Company shall provide notice
of such appointment to all Holders of Debt Securities of such series in the
manner and to the extent provided in Section 1.06. Any successor Authenticating
Agent, upon acceptance of its appointment hereunder, shall become vested with
all rights, powers, duties and responsibilities of its predecessor hereunder,
with like effect as if originally named as Authenticating Agent. The Company
agrees to pay each Authenticating Agent from time to time reasonable
compensation for its services.

                                 ARTICLE SEVEN

                HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

                  Section 7.01. Company to Furnish Trustee Names and Addresses
of Holders. The Company will furnish or cause to be furnished to the Trustee
with respect to the Debt Securities of each series for which the Trustee acts as
Trustee:

                  (a) at least semi-annually, not more than 15 days after each
Regular Record Date in respect of the Debt Securities of such series (or on 30
June and 31 December of each year with respect to the Debt Securities of any
series for which there are no Regular Record Dates or for which there are
different Regular Record Dates for Debt Securities of such series issued on
different dates), a list, in such form as the Trustee may reasonably require, of
the names and addresses of the Holders of Registered Securities as of such
Regular Record Date or June 15 or December 16, as the case may be, and

                  (b) at such other times as the Trustee may request in writing,
within 30 days after the receipt by the Company of any such request, a list of
similar form and content as of a date not more than 15 days prior to the time
such list is furnished;

provided, however, that if and so long as the Trustee shall be the Registrar, no
such list need be furnished.

                  Section 7.02. Preservation of Information; Communications to
Holders. The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders of Registered Securities
contained in the most recent list furnished to the Trustee as provided in
Section 7.01 and the names and addresses of Holders received by the Trustee in
its capacity as Registrar, if so acting. The Trustee may destroy any list
furnished to it as provided in Section 7.01 upon receipt of a new list so
furnished. The Trustee shall preserve for at least two years from the date of
receipt of the names and addresses of Holders of any Debt Securities filed with
the Trustee, to the extent so filed.

                  (b) If three or more Holders (hereinafter referred to as
"applicants") apply in writing to the Trustee, and furnish to the Trustee
reasonable proof that each such applicant has owned a Debt Security for a period
of at least six months preceding the date of such application, and such
application states that the applicants desire to communicate with other Holders
of Debt Securities of a particular series (in which case the applicants must
hold Debt Securities of such series) or with all Holders of Debt Securities with
respect to their rights under this Indenture or under the Debt Securities and
such application is accompanied by a copy of the form of proxy or other
communication which such applicants propose to transmit, then the Trustee shall,
within five Business Days after the receipt of such application, at its
election, either

                  (i) afford such applicants access to the information preserved
         at the time by the Trustee in accordance with Section 7.02(a), or

                  (ii) inform such applicants as to the approximate number of
         Holders of Debt Securities of such series or of all Debt Securities, as
         the case may be, whose names and addresses appear in the information
         preserved at the time by the Trustee in accordance with Section
         7.02(a), and as to the approximate cost of mailing to such Holders the
         form of proxy or other communication, if any, specified in such
         application.

                  If the Trustee shall elect not to afford such applicants
access to such information, the Trustee shall, upon the written request of such
applicants, mail to each Holder whose name and address appear in the information
preserved at the time by the Trustee in accordance with Section 7.02(a), a copy
of the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing, unless within five days after such tender the Trustee shall mail to
such applicants and file with the Commission, together with a copy of the
material to be mailed, a written statement to the effect that, in the opinion of
the Trustee, such mailing would be contrary to the best interests of the Holders
or would be in violation of applicable law. Such written statement shall specify
the basis of such opinion. If the Commission, after opportunity for a hearing
upon the objections specified in the written statement so filed, shall enter an
order refusing to sustain any of such objections or if after the entry of an
order sustaining one or more of such objections, the Commission shall find,
after notice and opportunity for hearing, that all the objections so sustained
have been met and shall enter an order so declaring, the Trustee shall mail
copies of such material to all such Holders with reasonable promptness after the
entry of such order and the renewal of such tender; otherwise the Trustee shall
be relieved of any obligation or duty to such applicants respecting their
application.

                  (c) Every Holder of Debt Securities or Coupons, by receiving
and holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee shall be held accountable by reason of the disclosure of
any such information as to the names and addresses of the Holders in accordance
with Section 7.02(b), regardless of the source from which such information was
derived, and that the Trustee shall not be held accountable by reason of mailing
any material pursuant to a request made under Section 7.02(b).

                  Section 7.03. Reports by Trustee. (a) The Trustee shall
transmit to Holders such reports concerning the Trustee and its actions under
this Indenture as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided pursuant thereto; provided, however that any
reports required by Section 313(a) of the Trust Indenture Act shall be
transmitted by mail to Holders within 60 days after 15 May of each year
commencing with the year following the first issuance of Debt Securities.

                  (b) A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each stock exchange upon
which any Debt Securities are listed, with the Commission and with the Company.
The Company will notify the Trustee when any series of Debt Securities is listed
on any stock exchange.

                  Section 7.04. Reports by Company. The Company shall file with
the Trustee and the Commission, and transmit to Holders, such information,
documents and other reports, and such summaries thereof, as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided
pursuant to such Act; provided that any such information, documents or reports
required to be filed with the Commission pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended, shall be filed with the Trustee
within 15 days after the same is so filed with the Commission. The Trustee shall
make all such reports available for inspection by Holders at its Corporate Trust
Office.

                                 ARTICLE EIGHT

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

                  Section 8.01. Company May Consolidate, etc., Only on Certain
Terms. The Company may, without the consent of Holders of any Debt Securities of
any series outstanding under this Indenture, consolidate or amalgamate with or
merge into any other corporation or convey or sell or transfer or lease its
properties and assets substantially as an entirety to any Person, provided that:

                  (1) the corporation formed by such consolidation or
         amalgamation or into which the Company is merged or the Person which
         acquires by conveyance or transfer the properties and assets of the
         Company, substantially as an entirety (i) shall expressly assume, by an
         indenture supplemental hereto, executed and delivered to the Trustee,
         in form satisfactory to the Trustee the due and punctual payment of any
         principal, premium or interest (including all additional amounts, if
         any, payable pursuant to Section 10.04) in respect of all the Debt
         Securities and any related Coupons and the performance of every
         covenant of this Indenture on the part of the Company to be performed
         or observed and (ii) the definition of "Taxing Jurisdiction" shall be
         amended, if applicable, to replace the United Kingdom with the
         jurisdiction in which such successor Person is resident for tax
         purposes;

                  (2) immediately after giving effect to such transaction and
         treating any indebtedness that becomes an obligation of the Company, as
         a result of such transaction as having been incurred by the Company at
         the time of such transaction, no Event of Default or Default, and no
         event that, after notice or lapse of time, or both, would become an
         Event of Default or a Default, shall have occurred and be continuing;
         and

                  (3) the Company and the successor Person, have delivered to
         the Trustee an Officer's Certificate and, if so requested by the
         Trustee, an Opinion of Counsel stating that such consolidation, merger,
         conveyance, transfer or lease and, if a supplemental indenture is
         required in connection with such transaction, such supplemental
         indenture comply with this Article and that all conditions precedent
         herein provided for relating to such transaction have been complied
         with.

                  Section 8.02. Successor Person Substituted. Upon any
consolidation or amalgamation with or merger into any other corporation, or any
conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety to any Person in accordance with Section 8.01, the
successor corporation formed by such consolidation or amalgamation or into which
the Company is merged or the successor Person to which such conveyance, transfer
or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect
as if such successor corporation or successor Person had been named as the
Company herein, and thereafter, except in the case of a lease, the predecessor
corporation shall be relieved of all obligations and covenants under this
Indenture and the Debt Securities and any Coupons.

                  Section 8.03. Assumption of Obligations. With respect to the
Debt Securities of any series, a holding company of the Company or any
subsidiary of the Company (a "successor entity") may assume the obligations of
the Company (or any corporation which shall have previously assumed the
obligations of the Company) for the due and punctual payment of the principal of
(and premium, if any, on), or interest on and any additional amount required to
be paid in accordance with the provisions of the Indenture or the Debt
Securities in respect of the Debt Securities and the performance of each
covenant of the Indenture and the Debt Securities on the part of the Company to
be performed or observed provided, that

                  (1) the successor entity shall expressly assume such
         obligations by an amendment to the Indenture, executed by the Company
         and such successor entity, if applicable, and delivered to the Trustee,
         in form satisfactory to the Trustee, and the Company shall, by
         amendment to the Indenture, unconditionally guarantee all of the
         obligations of such successor entity under the Debt Securities of such
         series and the Indenture as so modified by such amendment (provided,
         however, that, for the purposes of the Company's obligation to pay to
         Holders all Additional Amounts, if any, payable pursuant to Section
         10.04 in respect of the Debt Securities and any related Coupons,
         references to such successor entity's country of organization will be
         added to references to the United Kingdom);

                  (2) such successor entity shall confirm in such amendment to
         the Indenture that such successor entity will pay to the Holders all
         Additional Amounts, if any, payable pursuant to Section 10.04 in
         respect of all the Debt Securities and any related Coupons (provided,
         however, that for these purposes such successor entity's country of
         organization will be substituted for the references to the United
         Kingdom); and

                  (3) immediately after giving effect to such assumption of
         obligations, no Event of Default or Default and no event which, after
         notice or lapse of time or both, would become an Event of Default or
         Default, shall have occurred and be continuing.

                  Upon any such assumption, the successor entity shall succeed
to, and be substituted for, and may exercise every right and power of, the
Company under this Indenture with respect to any such Debt Securities with the
same effect as if such successor entity had been named as the Company in this
Indenture, and the Company or any legal and valid successor corporation which
shall theretofore have become such in the manner prescribed herein, shall be
released from all liability as obligor upon any such Debt Securities except as
provided in Clause (1) above.

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

                  Section 9.01. Supplemental Indentures Without Consent of
Holders. Without the consent of any Holders of Debt Securities or Coupons, the
Company, when authorized by or pursuant to a Board Resolution, and the Trustee,
at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Trustee, for any of the
following purposes:

                  (1) to evidence the succession of another Person to the
         Company and the assumption by such successor Person of the covenants of
         the Company herein and in the Debt Securities contained;

                  (2) to add to the covenants of the Company for the benefit of
         the Holders of all or any series of Debt Securities or Coupons (and, if
         such covenants are to be for the benefit of less than all series of
         Debt Securities or Coupons, stating that such covenants are expressly
         being included solely for the benefit of such series) or to surrender
         any right or power herein conferred upon the Company;

                  (3) to change or eliminate any restrictions on the payment of
         any principal of (or premium, if any, on) or interest on Bearer
         Securities, to permit Bearer Securities to be issued in exchange for
         Registered Securities or to permit or facilitate the issuance of Debt
         Securities in uncertificated or book-entry form; provided that no such
         action shall adversely affect the interests of the Holders of Debt
         Securities of any series or any related Coupons in any material
         respect; or

                  (4) to change or eliminate any of the provisions of this
         Indenture; provided that any such change or elimination shall be
         effective only with respect to any series of Debt Securities created
         subsequent to the execution of such supplemental indenture; or

                  (5) to establish the form or terms of Debt Securities of any
         series and any related Coupons as permitted by Section 2.01 and Section
         3.01;

                  (6) to evidence and provide for the acceptance of appointment
         hereunder by a successor Trustee with respect to the Debt Securities of
         one or more series and to add to, change or eliminate any of the
         provisions of this Indenture as shall be necessary to provide for or
         facilitate the administration of the trusts hereunder by more than one
         Trustee, pursuant to the requirements of Section 6.11; or

                  (7) to secure the Debt Securities;

                  (8) to cure any ambiguity, to correct or supplement any
         provision herein which may be defective or inconsistent with any other
         provision herein, or to make any other provision with respect to
         matters or questions arising under this Indenture that shall not be
         inconsistent with any provision of this Indenture; provided that such
         action shall not adversely affect the interests of the Holders of Debt
         Securities of any series or any related Coupons in any material
         respect; or

                  (9) to add, to change or to eliminate any provision of this
         Indenture as shall be necessary or desirable in accordance with any
         amendment to the Trust Indenture Act.

                  Section 9.02. Supplemental Indentures With Consent of Holders.
With the consent of the Holders of not less than a majority in aggregate
principal amount (or, in the case of any Principal Indexed Security, face
amount) of the Outstanding Debt Securities affected by such supplemental
indenture, by Act of said Holders delivered to the Company and the Trustee, when
authorized by or pursuant to a Board Resolution, and the Trustee may enter into
an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights under this Indenture of
the Holders of such Debt Securities and any related Coupons; provided, however,
that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Debt Security or Coupon affected thereby,

                  (1) change the Stated Maturity of any principal or any
         installment of interest or additional amounts payable in respect of any
         Debt Security, or reduce the principal amount (or, in the case of any
         Principal Indexed Security, face amount) thereof or any interest or any
         related deferred payment, or the rate of interest on any of the
         foregoing, thereon or any premium payable upon redemption thereof, or
         additional amounts payable thereon, or change the manner in which the
         amount of any payment of any principal, premium or interest in respect
         of any Indexed Security is determined, or change any obligation of the
         Company to pay any additional amount pursuant to Section 10.04 (except
         as contemplated by Section 8.01(1) and permitted by Section 9.01(1), or
         reduce the amount of the principal of a Discount Debt Security that
         would be due and payable upon an acceleration of the Maturity thereof
         pursuant to Section 5.02, or change any Place of Payment, or change the
         coin or currency in which any principal (and premium, if any,) or any
         interest or any Coupon or any related deferred payment is payable, or
         the rate of interest on any of the foregoing, or impair the right to
         institute suit for the enforcement of any such payment on or after the
         Stated Maturity thereof (or, in the case of redemption or exchange, on
         or after the Redemption Date or the Event Date, as the case may be);

                  (2) reduce the percentage of the aggregate principal amount
         (or, in the case of any Principal Indexed Security, face amount) of the
         Outstanding Debt Securities affected thereby, the consent of whose
         Holders is required for any such supplemental indenture, or the consent
         of whose Holders is required for any waiver (of compliance with certain
         provisions of this Indenture or certain defaults hereunder and their
         consequences) provided for in this Indenture;

                  (3) modify any of the provisions of this Section 9.02, Section
         5.13 or Section 10.06, except to increase any such percentage or to
         provide that certain other provisions of this Indenture cannot be
         modified or waived without the consent of the Holder of each
         Outstanding Debt Security affected thereby; provided, however, that
         this clause shall not be deemed to require the consent of any Holder of
         a Debt Security with respect to changes in the references to "the
         Trustee" and concomitant changes in this Section and Section 10.06;

                  (4) change any obligation of the Company to maintain an office
         or agency in the places and for the purposes specified in Section
         10.02; or

                  (5) change in any manner adverse to the interests of the
         Holders of Debt Securities of any series, the subordination provisions
         of the Debt Securities of such series or the terms and conditions of
         the obligations of the Company in respect of the due and punctual
         payment of the principal, premium, if any, interest, any deferred
         payment or the rate of interest on any of the foregoing on the Debt
         Securities of such series.

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

                A supplemental indenture that changes or eliminates any covenant
or other provision of this Indenture that has expressly been included solely for
the benefit of one or more particular series of Debt Securities, or that
modifies the rights of the Holders of Debt Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the
rights under this Indenture of the Holders of Debt Securities of any other
series.

                  Section 9.03. Execution of Supplemental Indentures. In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 6.01) shall be fully protected in relying upon, an Opinion
of Counsel from the Company stating that the execution and delivery of such
supplemental indenture has been duly authorized by all necessary corporate
action, such supplemental indenture has been duly executed and delivered and,
assuming that the Trustee has satisfied those legal requirements that are
applicable to it to the extent necessary to make such supplemental indenture
enforceable against it, is a legal, valid, binding and enforceable agreement of
the Company subject to applicable bankruptcy, insolvency and similar laws
affecting creditors' rights generally, and subject, as to enforceability, to
general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law). The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture that affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise.

                  Section 9.04. Effect of Supplemental Indentures. Upon the
execution of any supplemental indenture under this Article, this Indenture shall
be modified in accordance therewith, and such supplemental indenture shall form
a part of this Indenture for all purposes; and every Holder theretofore or
thereafter authenticated and delivered hereunder and of any Coupons appertaining
thereto shall be bound thereby.

                  Section 9.05. Conformity with Trust Indenture Act and
Financial Services Authority Requirements. Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust
Indenture Act. The Company's rights and obligations under this Article Nine
shall be subject to the consent of the Financial Services Authority, if
required.

                  Section 9.06. Reference in Debt Securities to Supplemental
Indentures. Debt Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in a form satisfactory to the
Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Debt Securities of any series and any
appurtenant Coupons so modified as to conform, in the opinion of the Trustee and
the Board of Directors of the Company, to any such supplemental indenture may be
prepared and executed by the Company and authenticated and delivered by the
Trustee or the Authenticating Agent in exchange for Outstanding Debt Securities
of such series and any appurtenant Coupons.

                                  ARTICLE TEN

                                    COVENANTS

                  Section 10.01. Payment of Any Principal, Premium or Interest.
The Company covenants and agrees for the benefit of each series of Debt
Securities and any appurtenant Coupons that it will duly and punctually pay any
principal of (and premium, if any, on) or interest on such Debt Securities and
any appurtenant Coupons in accordance with the terms of such Debt Securities,
any appurtenant Coupons and this Indenture. Any interest due in respect of
Bearer Securities on or before Maturity, other than in respect of Bearer
Securities of a series in global form and other than additional amounts, if any,
payable as provided in Section 10.04 in respect of any principal of (and
premium, if any, on) and interest on such a Security, shall be payable only upon
presentation and surrender of the several Coupons for such interest installments
as are evidenced thereby as they severally mature.

                  No payment of any principal, premium or interest in respect of
Bearer Securities (other than a Permanent Global Security) shall be made at any
office or agency of the Company in the United States or by check mailed to any
address in the United States or by transfer to an account maintained with a bank
located in the United States; provided, however, that payment of any principal
of (and premium, if any, on) or interest (including additional amounts payable
in respect thereof) on any such Bearer Security may be made in Dollars at the
specified office of the Paying Agent, if (but only if) payment of the full
amount of such principal, premium, interest or additional amounts at all offices
outside the United States maintained for the purpose by the Company in
accordance with this Indenture is illegal or effectively precluded by exchange
controls or other similar restrictions.

                  Section 10.02. Maintenance of Office or Agency. The Company
will maintain in the Borough of Manhattan, The City of New York and in each
Place of Payment for any series of Debt Securities an office or agency where
Debt Securities of such series (but, except as otherwise provided below, unless
such Place of Payment is located outside the United States, not Bearer
Securities other than Permanent Global Debt Securities) may be presented or
surrendered for payment (and in any event, at least one such office or agency
outside the United Kingdom), where Debt Securities of such series may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Debt Securities of such series
and this Indenture may be served. If Debt Securities of a series are issuable as
Bearer Securities, the Company will maintain, subject to any laws or regulations
applicable thereto, an office or agency in a Place of Payment for such series
that is located outside the United States where Debt Securities of such series
and the related Coupons may be presented and surrendered for payment (including
payment of any additional amounts payable on Debt Securities of such series
pursuant to Section 10.04); provided, however, that if the Debt Securities of
such series are listed on the London Stock Exchange plc or the Luxembourg Stock
Exchange or any other stock exchange located outside the United States and such
stock exchange shall so require, the Company will maintain a Paying Agent in
London or Luxembourg or any other required city located outside the United
States, as the case may be, so long as the Debt Securities of such series are
listed on such exchange. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of any such office or
agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee except that Bearer Securities of that
series and the related Coupons may be presented and surrendered for payment
(including payment of any additional amounts payable on Bearer Securities of
that series pursuant to Section 10.04) at the place specified for the purpose
pursuant to Section 3.01, and the Company hereby appoints HSBC Bank USA as
Paying Agent and its agent to receive all such presentations, surrenders,
notices and demands.

                The Company may also from time to time designate one or more
other offices or agencies (in or outside of such Place of Payment) where the
Debt Securities of one or more series and any appurtenant Coupons (subject to
Section 10.01) may be presented or surrendered for any or all of such purposes,
and may from time to time rescind such designations; provided, however, that no
such designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in each Place of Payment for any
series of Debt Securities for such purposes. The Company will give prompt
written notice to the Trustee of any such designation and any change in the
location of any such other office or agency. The Company will at all times
maintain at least one Paying Agent that is located outside the United Kingdom
for each series of Debt Securities.

                The Company undertakes that if the conclusions of the ECOFIN
Council meeting of 26-27 November 2000 are implemented, to ensure that it
maintains a paying agent in a Member State of the European Union that will not
be obliged to withhold or deduct tax pursuant to the European Union Directive on
the taxation of savings proposed at the ECOFIN Council meeting of 26-27 November
2000 if there is at least one Member State which does not require a paying agent
to withhold or deduct tax pursuant to such Directive.

                  Section 10.03. Money for Debt Securities Payments to be Held
in Trust. If the Company shall at any time act as its own Paying Agent with
respect to any series of Debt Securities, it will, on or before each due date of
any principal of (and premium, if any, on) or interest on any Debt Securities of
such series and any appurtenant Coupons, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay any principal,
premium or interest so becoming due until such sums shall be paid to such
Persons or otherwise disposed of as herein provided, and will promptly notify
the Trustee of its action or failure so to act.

                Whenever the Company shall have one or more Paying Agents with
respect to any series of Debt Securities, the Company will, on or prior to each
due date of any principal of (and premium, if any, on) or interest on any Debt
Securities of such series and any appurtenant Coupons, deposit with a Paying
Agent a sum sufficient to pay any principal, premium or interest so becoming
due, such sum to be held in trust for the benefit of the Persons entitled to any
such principal, premium or interest, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure
so to act.

                The Company will cause each Paying Agent with respect to any
series of Debt Securities other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee,
subject to the provisions of this Section, that such Paying Agent will:

                  (1) hold all sums held by it for the payment of any principal
         (and premium, if any) or interest in respect of Debt Securities of such
         series and any appurtenant Coupons in trust for the benefit of the
         Persons entitled thereto until such sums shall be paid to such Persons
         or otherwise disposed of as herein provided;

                  (2) give the Trustee notice of any default by the Company (or
         any other obligor upon the Debt Securities of such series or any
         appurtenant Coupons) in the making of any payment of any principal of
         (and premium, if any, on) or interest on the Debt Securities of such
         series or any appurtenant Coupons; and

                  (3) at any time during the continuance of any such default,
         upon the written request of the Trustee, forthwith pay to the Trustee
         all sums so held in trust by such Paying Agent.

                The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such sums.

                Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of any principal of (and
premium, if any, on) or interest on any Debt Security of any series or any
appurtenant Coupons and remaining unclaimed for two years after any such
principal, premium or interest has become due and payable shall be paid to the
Company, as the case may be, on Company Request or (if then held by the Company)
shall be discharged from such trust; and the Holder of such Debt Security or any
appurtenant Coupons shall thereafter, as an unsecured general creditor, look
only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in an Authorized
Newspaper of general circulation in the Borough of Manhattan, The City of New
York, and each Place of Payment, or mailed to each such Holder, or both, notice
that such money remains unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such publication or
mailing, any unclaimed balance of such money then remaining will be repaid to
the Company. Debt Securities of any series or any appurtenant Coupons will be
void if not presented for payment of principal and premium, if any, within 10
years of such principal and premium, if any, becoming due and payable or
presented for payment of interest within five years of such interest becoming
due and payable.

                  Section 10.04. Payment of Additional Amounts. Unless otherwise
specified as contemplated by Section 3.01, with respect to Debt Securities, all
amounts of principal of (and premium, if any, on) and interest and related
deferred payments on any such Debt Securities will be paid by the Company,
without deduction or withholding for, or on account of, any and all present and
future income, stamp and other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings now or hereafter imposed, levied, collected, withheld
or assessed by or on behalf of the United Kingdom or any political subdivision
or any taxing authority thereof or therein having the power to tax (the "Taxing
Jurisdiction"), unless such deduction or withholding is required by law. If
deduction or withholding of any such taxes, levies, imposts, duties, charges,
fees, deductions or withholdings shall at any time be required by the Taxing
Jurisdiction, the Company will pay such additional amounts of, or in respect of,
the principal amount of, (and premium, if any, on) and interest on such Debt
Securities ("Additional Amounts") as may be necessary in order that the net
amounts paid to the Holders of such Debt Securities, after such deduction or
withholding, shall equal the respective amounts of principal, premium and
interest, which would have been payable in respect of such Debt Securities had
no such deduction or withholding been required, provided that the foregoing will
not apply to any such tax, levy, impost, duty, charge, fee, deduction or
withholding which would not have been payable or due but for the fact that (i)
the Holder of the Debt Security or the owner of a beneficial interest therein is
a domiciliary, national or resident of, or engaging in business or maintaining a
permanent establishment or physically present in, the Taxing Jurisdiction or
otherwise has some connection or former connection with the Taxing Jurisdiction
other than the holding or ownership of a Debt Security, or the collection of any
payment of (or in respect of) principal of (premium, if any, on) and interest
and related deferred payments on or the enforcement of, any Debt Security, (ii)
the relevant Debt Security or Coupon or other means of payment of interest or
related deferred payments in respect of Debt Securities is presented for payment
in the United Kingdom or (iii) the relevant Debt Security or other means of
payment of interest or related deferred payments in respect of Debt Securities
is presented for payment more than 30 days after the date payment became due or
was provided for, whichever is later, except to the extent that the Holder would
have been entitled to such Additional Amount on presenting the same for payment
at the close of such 30 day period (iv) such tax, levy, impost, duty, charge,
fee, deduction or withholding is imposed on any interest or related deferred
payment to an individual and is required to be made pursuant to any European
Union directive on the taxation of savings income relating to the proposal for a
directive on the taxation of savings income published by the ECOFIN Council on
13 December 2001 or otherewise implementing the conclusions of the ECOFIN
Council meeting of 26-27 November 2000, or any law implementing or complying
with, or introduced in order to conform to, such a directive; (v) presentation
for payment of the relevant Debt Securities was made to a paying agent who was
required to make (or pass through) such deduction or withholding and
presentation for payment could have been made to a paying agent who was not
required to make (or pass through) such deduction or withholding; (vi) there was
a failure to comply by the Holder or the beneficial owner of the Debt Securities
or the beneficial owner of any payment on such Debt Securities with a request of
the Company addressed to the Holder or the beneficial owner, including a request
of the Company related to a claim for relief under any applicable double tax
treaty (x) to provide information concerning the nationality, residence,
identity or connection with a Taxing Jurisdiction of the Holder or the
beneficial owner or (y) to make any declaration or other similar claim to
satisfy any information or reporting requirement, if the information or
declaration is required or imposed by a statute, treaty, regulation, ruling or
administrative practice of the Taxing Jurisdiction as a precondition to
exemption from withholding or deduction of all or part of the tax, duty,
assessment or other governmental charge; (vii) such tax, levy, impost, duty,
charge, fee, deduction or withholding is imposed in respect of any estate,
inheritance, gift, sale, transfer, personal property, wealth or similar tax,
duty, assessment or other governmental charge; or (vii) such tax, levy, impost,
duty, charge, fee, deduction or withholding is imposed in respect of any
combination of the above items.

                Whenever in this Indenture there is mentioned, in any context,
the payment of any principal of (and premium, if any, on) or interest on any
Debt Security of any series or the payment of any related Coupon or the net
proceeds received on the sale or exchange of any Debt Security of any series,
such mention shall be deemed to include mention of the payment of additional
amounts provided for in this Section to the extent that, in such context,
additional amounts are, were or would be payable in respect thereof pursuant to
the provisions of this Section, and express mention of the payment of additional
amounts (if applicable) in any provisions hereof shall not be construed as
excluding additional amounts in those provisions hereof where such express
mention is not made.

                  Section 10.05. Officer's Certificate as to Compliance with
Indenture and Default. The Company will deliver to the Trustee, on or before a
date not more than six months after the end of each fiscal year of the Company
(which on the date hereof is 31 December) ending after the date hereof, a
certificate from the principal executive officer, principal financial officer or
principal accounting officer as to his or her knowledge of the Company's
compliance with all conditions and covenants under the Indenture, whether an
Event of Default or Default has occurred, and, if an Event of Default or Default
has occurred, specifying all such defaults and the nature thereof of which they
may have knowledge. For purposes of this paragraph such compliance shall be
determined without regard to any period of grace or requirement of notice under
this Indenture.

                The Company will deliver written notice to the Trustee promptly
after any officer of the Company has knowledge of the occurrence of any event
that with the giving of notice or the lapse of time or both would become an
Event of Default or Default.

                  Section 10.06. Waiver of Certain Covenants. The Company may
omit in any particular instance to comply with any covenant or condition set
forth in Section 10.02 and Section 10.04 with respect to the Debt Securities of
any series if, before the time for such compliance, the Holders of at least a
majority in aggregate principal amount (or, in the case of any Principal Indexed
Security, face amount) of the Debt Securities of such series at the time
Outstanding shall, by Act of such Holders and on behalf of all Holders of Debt
Securities of that Series, either waive such compliance in such instance or
generally waive compliance with such covenant or condition, but no such waiver
shall extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations
of the Company and the duties of the Trustee in respect of any such covenant or
condition shall remain in full force and effect.

                                 ARTICLE ELEVEN

                          REDEMPTION OF DEBT SECURITIES

                  Section 11.01. Applicability of Article. Debt Securities of
any series that are redeemable before their Stated Maturity, if any, shall be
redeemable in accordance with their terms and, except as otherwise specified as
contemplated by Section 3.01 with respect to the Debt Securities of such series,
in accordance with this Article. The Company's rights and obligations under this
Article Eleven shall be subject to the consent of the Financial Services
Authority, if required.

                  Section 11.02. Election to Redeem; Notice to Trustee. Unless
otherwise provided under Section 3.01 with respect to any series of Debt
Securities, the election of the Company to redeem any Debt Securities shall be
evidenced by or pursuant to a Board Resolution. In case of any redemption at the
election of the Company of less than all of the Debt Securities of any series,
the Company shall, not less than 45, or more than 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the aggregate principal amount (or, in the case of Principal Indexed Securities,
face amount) of the Debt Securities of such series to be redeemed. If the Debt
Securities of such series may be originally issued from time to time with
varying terms, the Company shall also notify the Trustee of the particular terms
or designation of the Debt Securities of such series to be redeemed. In the case
of any redemption of Debt Securities prior to the expiration of any restriction
on such redemption provided in the terms of such Debt Securities or elsewhere in
this Indenture, the Company shall furnish the Trustee with an Officer's
Certificate evidencing compliance with such restriction.

                  Section 11.03. Selection by Trustee of Debt Securities to be
Redeemed. Except as otherwise specified as contemplated by Section 3.01 for Debt
Securities of any series, if less than all the Debt Securities of any series are
to be redeemed, the particular Debt Securities to be redeemed shall be selected
not more than 60 days prior to the Redemption Date by the Trustee from among the
Outstanding Debt Securities of such series (or, in the case of Debt Securities
of a series that may be originally issued from time to time with varying terms,
from among the Outstanding Debt Securities of such series having the same
original issue date and terms) not previously called for redemption, by such
method as the Trustee shall deem fair and appropriate and which may provide for
the selection for redemption of portions (equal to the minimum authorized
denomination for such Debt Securities or any integral multiple thereof that is
also an authorized denomination) of the principal amount (or, in the case of
Principal Indexed Securities, face amount) of Registered or Bearer Securities
(if issued in more than one authorized denomination) of such series of a
denomination larger than the minimum authorized denomination for such Debt
Securities.

                The Trustee shall promptly notify the Company in writing of the
Debt Securities selected for redemption and, in the case of any Debt Securities
selected for partial redemption, the principal amount (or, in the case of
Principal Indexed Securities, face amount) thereof to be redeemed.

                For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Debt Securities shall
relate, in the case of any Debt Security redeemed or to be redeemed only in
part, to the portion of the principal amount (or, in the case of Principal
Indexed Securities, face amount) of such Debt Security that has been or is to be
redeemed.

                  Section 11.04. Notice of Redemption. Notice of redemption
shall be given in the manner provided in Section 1.06 not less than 30 nor more
than 60 days prior to the Redemption Date, to each Holder of Debt Securities to
be redeemed.

                  All notices of redemption shall state:

                  (1) the Redemption Date;

                  (2) the Redemption Price, or the manner in which the
         Redemption Price is to be determined;

                  (3) if less than all Outstanding Debt Securities of any series
         are to be redeemed, the identification and the principal amount (or, in
         the case of Principal Indexed Securities, face amount)) of the
         particular Debt Securities to be redeemed;

                  (4) that on the Redemption Date the Redemption Price will
         become due and payable in respect of each such Debt Security to be
         redeemed, and that any interest thereon shall cease to accrue on and
         after said date;

                  (5) the Place or Places of Payment where such Debt Securities,
         together in the case of Bearer Securities with all Coupons, if any,
         appertaining thereto maturing after the Redemption Date, are to be
         surrendered for payment of the Redemption Price; and

                  (6) the CUSIP number or numbers, the Common Code, or the ISIN,
         if any, with respect to such Debt Securities.

                A notice of redemption published as contemplated by Section
11.04 need not identify particular Registered Securities to be redeemed.

                Notice of redemption of Debt Securities to be redeemed at the
election of the Company shall be given by the Company or, at the Company's
request, by the Trustee in the name and at the expense of the Company.

                  Section 11.05. Deposit of Redemption Price. On or prior to any
Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold
in trust as provided in Section 10.03) an amount of money sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) any accrued interest on, all the Debt Securities or portions
thereof that are to be redeemed on that date.

                  Section 11.06. Debt Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, the Debt Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Debt Securities shall cease to bear interest, if any and the
Coupons for any such interest appertaining to any Bearer Securities so to be
redeemed, except to the extent provided below, shall be void. Upon surrender of
any such Debt Security for redemption in accordance with said notice, such Debt
Security shall be paid by the Company at the Redemption Price, together with any
accrued interest to the Redemption Date; provided, however, that installments of
any interest on Bearer Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable only upon presentation and surrender of Coupons
for such interest (at an office or agency located outside the United States,
except as otherwise provided in Section 10.02); and provided further that
installments of any interest on Registered Securities whose Stated Maturity is
on or prior to the Redemption Date shall be payable to the Holders of such Debt
Securities, or one or more Predecessor Debt Securities, registered as such on
the relevant Regular or Special Record Dates according to their terms and the
provisions of Section 3.05. The obligation of the Company to redeem Debt
Securities of a series on a Redemption Date shall be subject to any Solvency
Condition.

                  If any Bearer Security surrendered for redemption shall not be
accompanied by all appurtenant Coupons maturing after the Redemption Date, such
Bearer Security may be paid after deducting from the Redemption Price an amount
equal to the face amount of all such missing Coupons, or the surrender of such
missing Coupon or Coupons may be waived by the Company, the Trustee and the
Paying Agent if there be furnished to them such security or indemnity as they
may require to save each of them and any Paying Agent harmless. If thereafter
the Holder of such Bearer Security shall surrender to the Trustee or any Paying
Agent any such missing Coupon in respect of which a deduction shall have been
made from the Redemption Price, such Holder shall be entitled to receive the
amount so deducted; provided, however, that interest represented by Coupons
shall be payable only upon presentation and surrender of those Coupons at an
office or agency located outside of the United States, except as otherwise
provided in Section 10.02.

                  If any Debt Security called for redemption shall not be so
paid upon surrender thereof for redemption, any principal (and premium, if any)
in respect thereof shall, until paid, bear interest from the Redemption Date at
the rate prescribed therefor in such Debt Security.

                  Section 11.07. Debt Securities Redeemed in Part. Any
Registered Security that is to be redeemed only in part shall be surrendered at
a Place of Payment therefor (with, if the Company, the Registrar or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company, the Registrar and the Trustee, duly executed by,
the Holder thereof or his attorney duly authorized in writing), and the Company
shall execute, and the Trustee or Authenticating Agent shall authenticate and
deliver to the Holder of the Registered Security, without service charge, a new
Registered Security or Registered Securities of the same series, of like tenor
and in an aggregate principal amount (or, in the case of any Principal Indexed
Security, face amount) equal to and in exchange for the unredeemed portion of
the principal of the Registered Security so surrendered in such authorized
denomination or denominations as are requested by such Holder; and any Bearer
Security that is to be redeemed only in part shall be surrendered at an office
or agency of the Company located outside the United States, except as otherwise
provided in Section 10.02, and the Company shall execute, and the Trustee shall
authenticate and deliver to the Holder of such Bearer Security outside the
United States, without service charge, a new Bearer Security or Bearer
Securities of the same series (or a new Registered Security or Registered
Securities of the same series if the Debt Securities of such series are also
issuable as Registered Securities), of like tenor and in an aggregate principal
amount (or, in the case of any Principal Indexed Security, face amount) equal to
and in exchange for the unredeemed portion of the principal of the Bearer
Security so surrendered in such authorized denomination or denominations as are
requested by such Holder; except if a Global Security is so surrendered, the
Company shall execute, and the Trustee shall authenticate and deliver to the
Depositary for such Global Security, without service charge, a new Global
Security of like tenor in a denomination equal to and in exchange for the
unredeemed portion of the principal amount (or, in the case of any Principal
Indexed Security, face amount) of the Global Security so surrendered.

                  Section 11.08. Optional Redemption in the Event of Change in
Tax Treatment. In addition to any redemption provisions that may be specified
pursuant to Section 3.01 for the Debt Securities of any series, the Debt
Securities (i) are redeemable, as a whole but not in part, at the option of the
Company, on not less than 30 nor more than 60 days' notice, at any time at a
redemption price equal to 100% of the principal amount, together with accrued
but unpaid interest, if any, in respect of such Debt Securities to the date
fixed for redemption, (or, in the case of Discount Debt Securities, the accreted
face amount, or, in the case of Principal Indexed Securities, the amount
specified pursuant to Section 3.01), and any Debt Securities convertible into
Dollar Preference Shares or Conversion Securities of the Company may, at the
option of the Company, be converted as a whole, if, at any time, the Company
shall determine that (a) in making payment under such Debt Securities in respect
of principal (or premium, if any) or interest or related deferred payment it has
or will or would become obligated to pay Additional Amounts, provided such
obligation to pay Additional Amounts results from a change in or amendment to
the laws of the Taxing Jurisdiction, or any change in the official application
or interpretation of such laws (including a decision of any court or tribunal),
or any change in, or in the official application or interpretation of, or
execution of, or amendment to, any treaty or treaties affecting taxation to
which the United Kingdom is a party, which change, amendment or execution
becomes effective on or after the date of original issuance of the Debt
Securities of such series or (b) the payment of interest in respect of such Debt
Securities has become or will or would be treated as a "distribution" within the
meaning of Section 209 of the Income and Corporation Taxes Act 1988 of the
United Kingdom (or any statutory modification or re-enactment thereof for the
time being), as a result of any change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of
such laws including a decision of any court, which change or amendment becomes
effective on or after the date of original issuance of the Debt Securities of
such series; provided, however, that in the case of (a) above, no notice of
redemption shall be given earlier than 90 days prior to the earliest date on
which the Company would be obliged to pay Additional Amounts were a payment in
respect of such Debt Securities then due.

                                 ARTICLE TWELVE

                        SUBORDINATION OF DEBT SECURITIES

                  Section 12.01. Debt Securities Subordinate to Certain
Creditors. (a) The Company covenants and agrees, and each Holder of Debt
Securities of each series, by his acceptance thereof, likewise covenants and
agrees, that (i) the Debt Securities of such series shall constitute unsecured
obligations of the Company without any preference among themselves, and (ii) in
the event of the winding up of the Company, to the extent and in the manner
hereinafter set forth in this Article Twelve, the indebtedness represented by
any of the Debt Securities of such series and the payment of the principal of
(and premium, if any, on) and interest on each and all of the Debt Securities of
such series is hereby expressly made subordinate and subject in right of payment
to the prior payment in full of all claims of the Ordinary Creditors.
Notwithstanding any other provision of this Indenture or the Debt Securities,
except with the consent of the Financial Services Authority, (i) no early
repayment may be made in respect of the Debt Securities and (ii) neither the
Company nor any of its subsidiaries may purchase any of the Debt Securities.

                  To the fullest extent permitted by law, the Holders of Debt
Securities and the Trustee, in respect of any claims of such Holders to payment
of any principal, premium or interest in respect of any Debt Securities, by
their acceptance of the Debt Securities thereof will be deemed to have waived
any right of set-off or counterclaim that such Holders or, as the case may be,
the Trustee in such respect, might otherwise have (whether in the liquidation of
the Company or at any other time). The Holders of Debt Securities, by their
acceptance of the Debt Securities, covenant and agree that if, on the winding up
of the Company, they receive any sums by way of set-off, they will hold such
sums on trust for the Ordinary Creditors and will, without undue delay, pay such
sums to the liquidator to apply in payment of claims of Ordinary Creditors.

                  (b) Any amounts receivable by the Trustee from the liquidator
in such winding up in respect of Debt Securities of a particular series or
Coupons appertaining to Debt Securities of such series not subject to a
condition of solvency pursuant to Clause (c) below shall be received by the
Trustee upon trust to apply the same as follows:

                  (i) first, in payment or satisfaction of the costs, charges,
         expenses and liabilities incurred by the Trustee including any unpaid
         remuneration in or about the execution of the trusts of these presents
         (in each case, to the extent payable by the Company under Section
         6.07);

                  (ii) secondly, subject to Section 12.05, in payment of claims
         of the Ordinary Creditors outstanding at the commencement of or arising
         by virtue of the winding up of the Company (excluding interest accruing
         after the date of the commencement of the winding up) to the extent
         that such claims shall be admitted in the winding up and shall not be
         satisfied out of the other resources of the Company; and

                  (iii) thirdly, in payment of any claims in respect of the Debt
         Securities of such series and Coupons appertaining to Debt Securities
         of such series (to the respective extents that the claims of the
         Holders thereof in respect thereof or of the Trustee in respect of any
         principal, premium or interest in respect thereof shall be admitted in
         such winding up) pari passu and ratably.

                  (c) Where it is specified pursuant to Section 3.01 that
payment of principal, premium (if any) or interest on Debt Securities of a
particular series is to be subject to a condition of solvency then the
obligation of the Company to make any payment of principal, premium (if any) or
interest in respect of Debt Securities of such series and any Coupons relating
thereto, whether prior or subsequent to the commencement of a winding up of the
Company in England, is conditional upon the Company being able to make such
payment and remain Solvent immediately thereafter (hereinafter referred to as a
"Solvency Condition"). No payment in respect of any Debt Securities of a series
or the Coupons relating thereto subject to a Solvency Condition which under this
Section or any other Section hereof would otherwise fall due for payment while
the Company is unable to satisfy the Solvency Condition will fall so due. Such
payment will become due for payment only if and when and to the extent that the
Company could make such payment and satisfy the Solvency Condition (whether or
not it was in winding up) immediately thereafter. Prior to the commencement of
the winding up of the Company in England interest will continue to accrue on any
Debt Securities of such series payment of which is suspended under this clause
subject to and in accordance with the provisions of these presents.

                  (ii) The Company shall whenever requested by the Trustee and
         will in the event the Company is in winding up deliver to the Trustee
         an Officer's Certificate attaching a report in writing from the
         Auditors or, if the Company is in winding up, the liquidator of the
         Company upon which report the Trustee may conclusively rely as to
         whether or not the Company, on the basis of such information as the
         Company may at the request of the Auditors make available to the
         Auditors or, if the Company is in winding up, on the basis of the
         information available to the liquidator, is or would in any specified
         circumstances be Solvent for the purposes of paragraph (i) of this
         clause and in the absence of proven error such report shall be treated
         and accepted by the Company, the Trustee and the Holders of the
         relevant Debt Securities and any Coupons relating thereto as correct
         and sufficient evidence of such fact. In the absence of any such
         evidence to the contrary, it shall be assumed for the purposes hereof
         (unless the contrary is proved) that the Company is and will after any
         payment hereunder be Solvent for such purposes.

                  The Trustee is under no obligation to request such a
certificate or report and the Trustee will not incur any liability as a result
of not so requesting such a certificate or report. No Holder of Debt Securities
or of Coupons relating thereto shall be entitled to proceed against the Trustee
or the Auditors in connection with the exercise or non-exercise by them of their
powers, duties and discretions under this paragraph.

                  (d) (i) In the event of a winding up of the Company claims in
respect of Debt Securities of a series and the Coupons relating thereto which
are subject to a Solvency Condition shall be postponed to the claims of the
Ordinary Creditors and any amounts receivable by the Trustee from the liquidator
in such winding up in respect of the Debt Securities of such series and
appurtenant Coupons shall be received by the Trustee upon trust to apply the
same as follows:

                         (A) first, in payment or satisfaction of the costs,
                    charges, expenses and liabilities incurred by the Trustee
                    including any unpaid remuneration in or about the execution
                    of the trusts of these presents (in each case, to the extent
                    payable by the Company under Section 6.07);

                         (B) secondly, the Trustee shall hold all remaining
                    amounts in trust for 30 days and (i) if on or prior to such
                    thirtieth day the Trustee is provided with an Officer's
                    Certificate attaching a report pursuant to Clause (c)(ii)
                    above which states that the Company could not make or could
                    not have made payment of such amounts and still be Solvent
                    (disregarding, for the purposes of this paragraph (d) only,
                    paragraph (A) of the definition of Solvent in Clause (d)(ii)
                    immediately hereafter) in return to the Company of the whole
                    or such part of such amounts (after any necessary deductions
                    pursuant to paragraph (A) of this Clause) as caused the
                    Company not to be then so Solvent as set forth in such
                    Officer's Certificate (disregarding as aforesaid), or (ii)
                    if on or prior to such date no report pursuant to Clause
                    (c)(ii) above is so provided the Trustee shall return the
                    whole of such amounts to the Company (and any money so
                    returned shall then be treated for the purposes of the
                    Company's obligations hereunder as if it had not been paid
                    by the Company and its original payment shall be deemed not
                    to have discharged any of the obligations of the Company
                    hereunder);

                         (C) thirdly, in payment of any claims in respect of the
                    Debt Securities of such series and appurtenant Coupons (to
                    the respective extents that the claims of the Trustee or the
                    Holder thereof in respect thereof shall be admitted in such
                    winding up) pari passu and ratably; and

                         (D) fourthly, in payment of the balance (if any) to the
                    Company.

                  (ii) For the purposes of this Section:

                       "Solvent" means, in relation to the Company, that
                       the Company:

                         (A) is able to pay its debts as they fall due; and

                         (B) its Assets exceed its Liabilities (other than its
                    Liabilities to persons in respect of Subordinated
                    Indebtedness);

                  (e) In the event of the winding up of the Company, every
obligation of the Company to pay any amount (whether in respect of principal,
premium or interest) in respect of any Debt Securities of any series shall be an
obligation to pay the relevant amount to the Trustee upon trust for application,
along with all other amounts receivable by the Trustee from the liquidator in
respect of the remaining Debt Securities of such series, in accordance with
Clause (b) or (d)(i) above, and the Company shall not be obliged to pay any such
amount directly to a Holder; accordingly, in the event that a suit is brought,
or a claim is lodged, by a Holder in respect of its Debt Securities of any
series in such winding up any amounts receivable from the liquidator in respect
of such suit or claim will be paid to the Trustee upon trust for such
application.

                  (f) The payments mentioned in Subsections (b)(ii) and
(d)(ii)(B) of this Section may be performed by the Trustee paying over to the
liquidator for the time being in the winding up of the Company the amounts
received by the Trustee as aforesaid (less any amounts thereof applied in the
implementation of the trust mentioned in Subsections (b)(ii), (d)(ii)(B) or
(d)(ii)(B) of this Section on terms that such liquidator shall distribute the
same accordingly. The receipt of the liquidator for the said amounts shall be a
good discharge to the Trustee.

                  (g) The Trustee shall be entitled and it is hereby authorized
to call for and to accept as conclusive evidence thereof a certificate from the
liquidator for the time being of the Company on behalf of the Company as to:

                         (A) the amount of the claims of the Ordinary Creditors
                    which shall not have been satisfied out of the other
                    resources of the Company; and

                         (B) the Persons entitled thereto and their respective
                    entitlements.

                  Such certificate shall be provided to the Trustee at least 3
Business Days before the date on which the Trustee shall be required to make any
payments under this Section.

                  (h) The provisions of this Section shall apply only to payment
of principal, premium and interest in respect of any such Debt Securities of any
series and nothing herein shall affect or prejudice the payment of the costs,
charges, expenses, liabilities or remuneration of the Trustee or the rights and
remedies of the Trustee in respect thereof.

                  (i) The provisions of this Section shall not be applicable to
any amounts of principal, premium and interest in respect of the Debt Securities
of any series for the payment of which funds have been deposited in trust with
the Trustee or have been set aside by the Company in trust in accordance with
the provisions of this Indenture; provided, however, that at the time of such
deposit or setting aside, and immediately thereafter, the foregoing provisions
of this Section are complied with.

                  (j) Notwithstanding anything contained in these presents to
the contrary, the foregoing provisions of this Section shall be construed and
have effect so that in the event of the liquidation of the Company the
obligations of the Company under the Debt Securities of a particular series and
under the Subordinated Indebtedness (other than Subordinated Indebtedness in
relation to which the obligations of the Company under that particular series of
Debt Securities rank junior or senior) will rank pari passu and ratably inter se
so far as concerns subordination to claims of depositors and other creditors of
the Company (except any creditors whose claims may rank junior to claims under
the Debt Securities of that particular series).

                  (k) The perpetuity period applicable to the trusts contained
in this Section shall be eighty years from the date hereof.

                  Section 12.02. Provisions Solely to Define Relative Rights.
The provisions of this Article are and are intended solely for the purpose of
defining the relative rights of the Holders of the Debt Securities on the one
hand and the Ordinary Creditors on the other hand. Nothing contained in this
Article or elsewhere in this Indenture or in the Debt Securities is intended to
or shall (i) impair, as among the Company, its creditors other than Ordinary
Creditors and the Holders of the Debt Securities, the obligation of the Company,
which is absolute and unconditional, to pay to the Holders of the Debt
Securities the principal of (and premium, if any, on) and interest on the Debt
Securities as and when the same shall become due and payable in accordance with
their terms; (ii) affect the relative rights against the Company of the Holders
of the Debt Securities and creditors of the Company other than the Ordinary
Creditors; or (iii) prevent the Trustee or the Holder of any Debt Securities
from exercising all remedies otherwise provided by applicable law upon default
under this Indenture, subject to the rights, if any, under this Article of the
Ordinary Creditors to receive sums otherwise payable or deliverable to the
Trustee or such Holders.

                  Section 12.03. Trustee to Effectuate Subordination. Each
Holder of a Debt Security by his acceptance thereof authorizes and directs the
Trustee on his behalf to take such action as may be necessary or appropriate to
effectuate the subordination of the Debt Securities provided in this Article and
appoints the Trustee his attorney for any and all such purposes.

                  Section 12.04. No Waiver of Subordination Provisions. No right
of any present or future Ordinary Creditors, if any, to enforce subordination as
herein provided shall at any time in any way be prejudiced or impaired by any
act or failure to act on the part of the Company or by any act or failure to
act, in good faith, by any such Ordinary Creditor or by any non-compliance by
the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof any such Ordinary Creditor may have or be
otherwise charged with.

                  Section 12.05. Notice to Trustee. The Company shall give
prompt written notice to the Trustee of any fact known to it, which would
prohibit the making of any payment to or by the Trustee in respect of the Debt
Securities. Notwithstanding the provisions of this Article or any other
provisions of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts which would prohibit the making of any payment to or
by the Trustee in respect of the Debt Securities, unless and until the Trustee
shall have received written notice thereof from the Company or an Ordinary
Creditor, as the case may be, or from any trustee therefor; and, prior to the
receipt of any such written notice, the Trustee, shall be entitled in all
respects to assume that no such facts exist; provided, however, that if a
Responsible Officer of the Trustee shall not have received the notice provided
for in this Section at least three Business Days prior to the date upon which by
the terms hereof any money may become payable for any purpose (including,
without limitation, the payment of the principal of or any premium or interest
on any Debt Security), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such
money and to apply the same to the purpose for which such money was received and
shall not be affected by any notice to the contrary which may be received by it
less than three Business Days prior to such date.

                  The Trustee shall be entitled to conclusively rely on the
delivery to it of a written notice by a Person representing himself to be an
Ordinary Creditor (or a trustee or agent on behalf of such Ordinary Creditor) to
establish that such notice has been given by an Ordinary Creditor (or a trustee
or agent on behalf of such Ordinary Creditor). In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as an Ordinary Creditor to participate in any payment or
distribution pursuant to this Article, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of claims held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the
rights of such Person under this Article, and if such evidence is not furnished,
the Trustee may defer any payment which it may be required to make for the
benefit of such Person pursuant to the terms of the Indenture pending judicial
determination as to the right of such Person to receive such payment.

                  Section 12.06. Reliance on Judicial Order or Certificate of
Liquidating Agent. Upon any payment or distribution of assets of the Company
referred to in this Article, the Trustee, subject to the provisions of Section
6.01, and the Holders of the Debt Securities shall be entitled to rely on (i)
any order or decree entered by any court in England and Wales in which any
winding up, insolvency, bankruptcy, receivership, liquidation or dissolution of
the Company or similar case or proceeding, including a proceeding for the
suspension of payments under English law, is pending, or (ii) a certificate of
the applicable liquidator, assignee for the benefit of creditors, agent or other
Person making such payment or distribution, delivered to the Trustee and such
Holders, for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the Ordinary Creditors and other claims against
the Company the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article.

                  Section 12.07. Trustee Not Fiduciary for Holders of Claims.
The Trustee undertakes to perform or to observe only such of its covenants or
obligations as are specifically set forth in this article and no implied
covenants or obligations shall be read into this Indenture against the Trustee.
The Trustee shall not be deemed to owe any fiduciary duty to the Ordinary
Creditors and shall not be liable to any such Ordinary Creditors if it shall in
good faith mistakenly pay over or distribute to Holders of Debt Securities or to
the Company or to any other Person cash, property or securities to which any
such Ordinary Creditors shall be entitled by virtue of this Article or
otherwise.

                  Section 12.08. Rights of Trustee as Holder of Claims;
Preservation of Trustee's Rights. The Trustee in its individual capacity shall
be entitled to all the rights set forth in this Article with respect to any
claims of Ordinary Creditors which may at any time be held by it, to the same
extent as any other Ordinary Creditors and nothing in this Indenture shall
deprive the Trustee of any of its rights as such Ordinary Creditor.

                  Nothing in this Article shall apply to claims of, or payments
to, the Trustee under or pursuant to Section 6.07.

                  Section 12.09. Article Applicable to Paying Agents. In case at
any time any Paying Agent other than the Trustee shall have been appointed by
the Company and be then acting hereunder, the term "Trustee" as used in this
Article shall in such case (unless the context otherwise requires) be construed
as extending to and including such Paying Agent within its meaning as fully for
all intents and purposes as if such Paying Agent were named in this Article in
addition to or in place of the Trustee; provided, however, that Section 12.08
shall not apply to the Company or any Affiliate of the Company if it or such
Affiliate acts as Paying Agent.

                  Section 12.10. Governing Law. The provisions of this Article
12 shall be governed by and construed in accordance with the laws of England and
Wales.

                  Section 12.11. Third Party Rights. No person who is not a
party to this Indenture shall have any rights under the Contracts (Rights of
Third Parties) Act of 1999 (the "Contracts Act") to enforce any term of Article
12 of this Indenture; provided that this does not affect any right or remedy of
a third party which exists or is available apart from the Contracts Act,
including under the laws of the State of New York or the federal laws of the
United States.

                                ARTICLE THIRTEEN

                    EXCHANGE OR CONVERSION OF DEBT SECURITIES

                  Section 13.01. Applicability of Article. If specified pursuant
to Section 3.01 for the Debt Securities of any series, the Debt Securities of
such series shall be exchangeable or convertible in accordance with their terms
and (except as otherwise specified as contemplated by Section 3.01 for Debt
Securities of such series) in accordance with this Article.

                  Section 13.02. Election to Exchange or Convert; Notice to
Trustee. An election of the Company to exchange or convert Debt Securities, as
the case may be, shall be evidenced by an Officer's Certificate furnished to the
Trustee stating that the Company is entitled to effect such Exchange or
Conversion and setting forth a statement of facts demonstrating the same.

                  Section 13.03. Notice of Exchange or Conversion. Not less than
45 days nor more than 90 days prior to the Event Date, the Company shall notify
the Trustee in writing of its election to exchange or convert, as the case may
be, the Debt Securities and of the series of Debt Securities to which such
election relates. The Trustee shall within five Business Days after receipt of
such notice from the Company, cause notice of such election to be mailed to each
Holder of Debt Securities to be exchanged or converted, as the case may be.

                  All notices of Exchange or Conversion shall state:

                  (1) the Event Date;

                  (2) if less than all of the series of the Debt Securities are
         to be exchanged or converted, as the case may be, the identification of
         the particular Debt Securities to be exchanged or converted, as the
         case may be, including relevant CUSIP numbers and other securities
         identification numbers, which Debt Securities shall be selected by the
         Trustee from the Outstanding Debt Securities of such series not
         previously called for conversion, by such method as the Trustee shall
         deem fair and appropriate;

                  (3) that on the Event Date, the Debt Security to be exchanged
         or converted, as the case may be, will cease to exist except to
         evidence the Exchange Securities or Conversion Securities, as the case
         may be, as described in Section 13.07 below on and after such Event
         Date; and

                  (4) the place or places where such Debt Securities are to be
         surrendered for exchange or conversion, as the case may be.

                  Notice of any Exchange or Conversion of Debt Securities at the
election of the Company shall be given by the Company or, at the Company's
Request, by the Trustee in the name of and at the expense of the Company.

                  Section 13.04. Deposit of Interest. On or prior to any Event
Date, the Company shall deposit with the Trustee or with a Paying Agent an
amount of money sufficient to pay accrued interest, if any, on the Debt
Securities to be exchanged or converted on the Event Date.

                  Section 13.05. Surrender of Debt Securities. Any Debt Security
which is to be exchanged or converted shall be surrendered at an office or
agency of the Company designated for that purpose pursuant to Section 10.02 not
less than 10 days prior to the Event Date (with due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or his attorney-in-fact duly authorized in
writing) accompanied by written notice specifying the name or names, if any with
address or addresses, in which the Exchange Securities or Conversion Securities,
as the case may be, are to be issued. Each of the Holders hereby constitutes and
appoints the Trustee his or her attorney-in-fact, with power of substitution, in
his or her name, to sign any and all instruments or certificates required for
the Exchange or the Conversion, as the case may be. Debt Securities surrendered
for Exchange or Conversion shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee for delivery by it to the Company or, if
delivered to the Trustee, shall be delivered by it to the Company.

                  Section 13.06. Issuance of Exchange Securities or Conversion
Securities. On or prior to the Event Date with respect to Debt Securities
surrendered for Exchange or Conversion, as the case may be, as provided in
Section 13.05, the Company shall deliver the Exchange Securities or Conversion
Securities to the Trustee or to such other Person as may be specified pursuant
to Section 3.01. Such Exchange or Conversion shall be deemed to have been made
immediately prior to the close of business in New York City on the Event Date.

                  Section 13.07. Effect of Exchange or Conversion. Notice of
Exchange or Conversion having been given as aforesaid, the Debt Securities so to
be exchanged or converted, as the case may be, shall, on the Event Date cease to
exist for any purpose, other than to evidence the Exchange Securities or the
Conversion Securities as described below. Upon surrender of any such Debt
Security for Exchange or Conversion, as the case may be, in accordance with said
notice and this Article Thirteen, accrued interest on such Debt Security to the
Event Date shall be paid by the Company to the Holder surrendering such Debt
Security.

                  If accrued interest on any Debt Security called for Exchange
or Conversion shall not be paid upon surrender thereof for such exchange or
conversion, such accrued interest shall, until paid, constitute Defaulted
Interest, payable in accordance with Section 3.06.

                  On and after the Event Date, each Debt Security to be
exchanged or converted, as the case may be, until surrendered for such Exchange
or Conversion shall be deemed to evidence the right to receive the Exchange
Securities or the Conversion Securities deliverable upon such surrender. On and
after the Event Date, until a Holder of a Debt Security has surrendered such
Debt Security for Exchange or Conversion, as the case may be, such Holder shall
be entitled to receive any dividends, payments or other distributions in respect
of such Exchange Securities or Conversion Securities and shall have the same
rights with respect to, and shall be deemed to be the Holder of, such Exchange
Securities or Conversion Securities as if it had so surrendered such Debt
Security for Exchange or Conversion on the Event Date; provided, however, that
no dividends, payments or other distributions in respect of such Exchange
Securities or Conversion Securities shall be paid or distributed to such Holder
any earlier than the date on which such Debt Security is surrendered for
Exchange or Conversion.

                  Section 13.08. Legal and Regulatory Compliance.
Notwithstanding any provision of this Indenture to the contrary, the right of
the Company to cause any Exchange or Conversion of the Debt Securities of any
series for Exchange Securities or Conversion Securities on any proposed Event
Date shall be subject to the fulfillment of any conditions to such Exchange or
Conversion as may be specified pursuant to Section 3.01 for the Debt Securities
of such series, and the Company represents and warrants for the benefit of the
holders of Exchange Securities or Conversion Securities, as the case may be,
that all such conditions shall have been satisfied prior to any such Exchange or
Conversion on the Event Date.

                  Section 13.09. Taxes and Charges. Unless otherwise specified
pursuant to Section 3.01, the issuance and delivery of Exchange Securities upon
Exchange, or Conversion Securities upon Conversion, of the Debt Securities of
any series pursuant to this Article Thirteen shall be made without charge to the
exchanging or converting Holder of Debt Securities for such Exchange Securities
or Conversion Securities, as the case may be, or for any tax or other
governmental charge (other than income or capital gains taxes) in respect of the
issuance or delivery of such Exchange Securities or Conversion Securities;
provided, however, that the Company shall not be required to pay any tax or
other governmental charge which may be payable in respect of a transfer involved
in the issuance and delivery of any such Exchange Security or Conversion
Security, as the case may be, to any Person other than any Holder of the Debt
Security to be exchanged or converted (unless such other person is the
securities depositary selected by the Company for the Debt Securities of such
series), and the Company shall not be required to issue or deliver such Exchange
Securities or Conversion Securities unless and until the Person requesting the
issuance or delivery thereof shall have paid to the Company the amount of such
tax or other governmental charge or shall have established to the satisfaction
of the Company that such tax or other governmental charge has been paid.

                  Section 13.10. Trustee Not Liable. The Trustee shall not be
accountable with respect to the validity or value (or the kind or amount) of any
Exchange Securities or Conversion Securities which may be issued or delivered
upon the Exchange or Conversion of any Debt Security pursuant to this Article
Thirteen, and makes no representation with respect thereto. The Trustee shall
not be responsible for any failure of the Company to issue, transfer or deliver
any Exchange Securities or Conversion Securities upon the surrender of any Debt
Security for the purpose of an Exchange or Conversion pursuant to this Article
Thirteen or to comply with any of the covenants of the Company contained in this
Article Thirteen.

                                ARTICLE FOURTEEN

                                   DEFEASANCE

                  Section 14.01. Applicability of Article. If, pursuant to
Section 3.01, provision is made for the defeasance of Debt Securities of a
series and if the Debt Securities of such series are denominated and payable
only in Dollars (except as provided pursuant to Section 3.01), then the
provisions of this Article shall be applicable except as otherwise specified
pursuant to Section 3.01 for Debt Securities of such series. Defeasance
provisions, if any, for Debt Securities denominated in a Foreign Currency may be
specified pursuant to Section 3.01. The Company's rights and obligations under
Article Fourteen shall be subject to the consent of the Financial Services
Authority, if required.

                  Section 14.02. Defeasance Upon Deposit of Moneys or U.S.
Government Obligations. At the option of the Company, the Company shall (a) be
discharged from any obligations with respect to Debt Securities of any series or
(b) shall cease to be under any obligation to comply with any term, provision or
condition set forth in Section 10.05 ("covenant defeasance") (and, if so
specified pursuant to Section 3.01, any other restrictive covenant added for the
benefit of such series pursuant to Section 3.01) at any time after the
applicable conditions set forth below have been satisfied:

                  (1) the Company shall have deposited or caused to be deposited
         irrevocably in trust with the Trustee funds in trust dedicated solely
         to the benefit of the Holders of the Debt Securities of such series (i)
         cash in Dollars in an amount, or (ii) U.S. Government Obligations (as
         defined below) that through the payment of interest and principal in
         respect thereof in accordance with their terms will provide, not later
         than the due date of any payment, cash in Dollars in an amount or (iii)
         a combination of (i) and (ii), sufficient, in the opinion (with respect
         to (ii) and (iii)) of an internationally recognized firm of independent
         public accountants expressed in a written certification thereof
         delivered to the Trustee, to pay and discharge each installment of
         principal of (and premium, if any, on) and interest on, the Outstanding
         Debt Securities of such series on the dates such installments of
         interest or principal and premium are due;

                  (2) if the Debt Securities of such series are then listed on
         the New York Stock Exchange, the Company shall have delivered to the
         Trustee an Opinion of Counsel to the effect that such covenant
         defeasance would not cause such Debt Securities to be delisted;

                  (3) no Event of Default or Default or event (including such
         deposit), that, with notice or lapse of time, or both, would become an
         Event of Default or Default with respect to the Debt Securities of such
         series shall have occurred and be continuing on the date of such
         deposit;

                  (4) the Company shall have delivered to the Trustee an Opinion
         of Counsel to the effect that Holders of the Debt Securities of such
         series will not recognize income, gain or loss for United States
         Federal income tax purposes as a result of such covenant defeasance;

                  (5) the Company shall have delivered to the Trustee an Opinion
         of Counsel to the effect that such deposit and related covenant
         defeasance will not cause Holders of the Debt Securities of such
         series, other than Holders who are or who are deemed to be residents of
         the United Kingdom or use or hold or are deemed to use or hold their
         Debt Securities in carrying on a business in the United Kingdom, to
         recognize income, gain or loss for United Kingdom income tax purposes,
         and to the effect that payments out of the trust fund will be free and
         exempt from any and all withholding and other income taxes of whatever
         nature of the United Kingdom or any political subdivision thereof or
         therein having power to tax, except in the case of Debt Securities
         beneficially owned (a) by a person who is or is deemed to be a resident
         off the United Kingdom or (b) by a Person who uses or holds or is
         deemed to use or hold such Debt Securities in carrying on a business in
         the United Kingdom; and

                  (6) the Company shall have delivered to the Trustee an
         Officer's Certificate stating that all conditions precedent relating to
         the covenant defeasance have been complied with.

                  "U.S. Government Obligations" means securities that are (i)
direct obligations of the United States for the payment of which its full faith
and credit is pledged or (ii) obligations of a Person controlled or supervised
by and acting as an agency or instrumentality of the United States the timely
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States, that, in either case under clauses (i) or (ii),
are not callable or redeemable at the option of the issuer thereof, and shall
also include a depositary receipt issued by a bank or trust company as custodian
with respect to any such U.S. Government Obligation or a specific payment of
interest on or principal of any such U.S. Government Obligation held by such
custodian for the account of the holder of a depositary receipt; provided that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of interest on or principal of the U.S.
Government Obligation evidenced by such depositary receipt.

                  Section 14.03. Deposited Moneys and U.S. Government
Obligations to be Held in Trust. All moneys and U.S. Government Obligations
deposited with the Trustee pursuant to Section 14.02 in respect of Debt
Securities of a series shall be held in trust and applied by it, in accordance
with the provisions of such Debt Securities and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as its
own Paying Agent) as the Trustee may determine, to the Holders of such Debt
Securities, of all sums due and to become due thereon for principal (and
premium, if any) and interest, if any, but such money need not be segregated
from other funds except to the extent required by law.

                  Section 14.04. Repayment to Company. The Trustee and any
Paying Agent shall promptly pay or return to the Company upon Company Request
any moneys or U.S. Government Obligations held by them at any time that are not
required for the payment of the principal of (and premium, if any) and interest
on the Debt Securities of any series for which money or U.S. Government
Obligations have been deposited pursuant to Section 14.02.

                  The provisions of the last paragraph of Section 10.03 shall
apply to any money held by the Trustee or any Paying Agent under this Article
that remains unclaimed for two years after the Maturity of any series of Debt
Securities for which money or U.S. Government Obligations have been deposited
pursuant to Section 14.02.

                  Section 14.05. Indemnity for U.S. Government Obligations. The
Company shall pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the deposited U.S. Government Obligations
or the principal or interest received on such U.S. Government Obligations.

                                ARTICLE FIFTEEN

                     MEETINGS OF HOLDERS OF DEBT SECURITIES

                  Section 15.01. Rules by Trustee, Paying Agent and Registrar.
The Trustee may make reasonable rules for action by, or a meeting of, Holders.
The Registrar and the Paying Agent may make reasonable rules for their
functions.

<PAGE>

                  This instrument may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

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

                         HSBC HOLDINGS PLC
                         as Issuer

                         -------------------------------
                         Keith R. Whitson

                         -------------------------------
                         Douglas J. Flint

                         The Bank of New York
                         as Trustee

                         By
                            ----------------------------

                         HSBC Bank USA
                         as Paying Agent

                         By
                            ----------------------------

                         HSBC Bank USA
                         as Registrar

                         By
                            ----------------------------

                         HSBC Bank USA
                         as Exchange Rate Agent

                         By
                            ----------------------------

Attest:

<PAGE>

                                                                       EXHIBIT A

 Form of Certification to be Given by Person Entitled to Receive Bearer Security

                                   CERTIFICATE

                                HSBC Holdings plc

                           [Title of Debt Securities]
                             (the "Debt Securities")

         This is to certify that, as of the date hereof, principal amount of the
above-captioned Debt Securities (i) is owned by persons that are not citizens or
residents of the United States, domestic partnerships, domestic corporations or
any estate or trust the income of which is subject to United States Federal
income taxation regardless of its source ("United States persons"), (ii) is
owned by United States persons that are (a) foreign branches of United States
financial institutions (as defined in U.S. Treasury Regulations Section
1.165-12(c) (1) (v)) ("financial institutions") purchasing for their own account
or for resale, or (b) United States persons who acquired the Securities through
foreign branches of the United States financial institutions and who hold the
Debt Securities through such United States financial institutions on the date
hereof (and in either case (a) or (b), each such United States financial
institution has agreed, on its own behalf or through its agent, that we may
advise the Issuer or the Issuer's agent that it will comply with the
requirements of Section 165 (j) (3) (A), (B) or (C) of the Internal Revenue Code
of 1986, as amended, and the regulations thereunder), or (iii) is owned by
United States or foreign financial institutions for purposes of resale during
the restricted period (as defined in U.S. Treasury Regulations Section
1.163-5(c) (2) (i) (D) (7)), and to the further effect that United States or
foreign financial institutions described in clause (iii) above (whether or not
also described in clause (i) or (ii)) have certified that they have not acquired
the Securities for purposes of resale directly or indirectly to a United States
person or to a person within the United States or its possessions.

         If this certificate is being provided by a clearing organization, it is
based on statements provided to it by its member organizations. In such event,
we further certify (i) that we are not making available herewith for exchange
(or, if relevant, exercise of any rights or collection of any interest) any Debt
Securities excepted in such certifications and (ii) that as of the date hereof
we have not received any notification from any of our member organizations to
the effect that the statements made by such member organizations with respect to
any Debt Securities submitted herewith for exchange (or, if relevant, exercise
of any rights or collection of any interest) are no longer true and cannot be
relied upon as the date hereof.

         We understand that this certification is required in connection with
certain tax laws of the United States. In connection therewith, if
administrative or legal proceedings are commenced or threatened in connection
with which this certification is or would be relevant, we irrevocably authorize
you to produce this certification to any interested party in such proceedings.

Dated: ____________, 20__(1)

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

----------------
(1) To be dated as of the date of delivery of a Bearer Security (other than a
temporary Global Security) or, if earlier, the date on which interest is first
paid, as more fully set forth in Sections 303 and 304 of the Indenture.

<PAGE>
                                                                       Exhibit B

                     Form of election to receive payments in
                     [Dollars or other applicable currency]
                           or to rescind such election

                The undersigned, registered owner of certificate number R-   ,
representing [name of series of Debt Securities] (the " Debt Securities") in an
aggregate principal amount of        , hereby

       G        elects to receive all payments in respect of the Debt Securities
                in [Dollars or other applicable currency], it being understood
                that such election shall take effect as provided in the Debt
                Securities and, subject to the terms and conditions set forth in
                the indenture under which the Debt Securities were issued, shall
                remain in effect until it is rescinded by the undersigned or
                until such certificate is transferred.

       G        rescinds the election previously submitted by the undersigned to
                receive all payments in respect of the Debt Securities in
                [Dollars or other applicable currency], it being understood that
                such rescission shall take effect as provided in the Debt
                Securities.

                         (Name of Owner)

                                  (Signature of Owner)

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