Document:

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                                                                    Exhibit 10.2

                              FORM OF SECURITY FOR
       FUNDING NOTE RELATED TO SECURED MEDIUM TERM NOTES ISSUED UNDER THE
                     ALLSTATE LIFE(SM) CORENOTES(R) PROGRAM

                               [FACE OF SECURITY]

                                                     CUSIP No.:

                          ALLSTATE LIFE GLOBAL FUNDING
                                  FUNDING NOTE

<Table>
<S>                                                             <C>
Title of Funding Note:                                          Stated Maturity Date:
Trust:                                                          Settlement Date and Time:
Principal Amount: $_____________                                Securities Exchange Listing: / / Yes / / No. If yes,
Original Issue Date:                                                     indicate name(s) of Securities Exchange(s):
Issue Price:                                                             __________________________.
Interest Rate or Formula:                                       Floating Rate Note: / / Yes / / No. If yes,
Fixed Rate Note: / / Yes / / No. If yes,                                 Regular Floating Rate Notes: / /
         Interest Rate:                                                  Floating Rate/Fixed Rate Notes: / /
         Interest Payment Dates:                                         Interest Rate:
         Day Count Convention:                                           Interest Rate Basis(es):
         Additional/Other Terms:                                                 LIBOR / /
Discount Note: / / Yes / / No. If yes,                                              / / LIBOR Reuters Page:
         Total Amount of Discount:                                                  / / LIBOR Telerate Page:
         Initial Accrual Period of Discount:                                        LIBOR Currency:
         Interest Payment Dates:                                                 Constant Maturity Treasury Rate / /
         Additional/Other Terms:                                                    Designated CMT Telerate Page:
Redemption Provisions: / / Yes / / No. If yes,                                              If Telerate Page 7052:
         Initial Redemption Date:                                                           / / Weekly Average
         Initial Redemption Percentage:                                                     / / Monthly Average
         Annual Redemption Percentage                                               Designated CMT Maturity Index:
         Reduction, if any:
         Additional/Other Terms:
</Table>

"Allstate Life(SM)" is a registered servicemark of Allstate Insurance Company.
"CoreNotes(R)" is a registered servicemark of Merrill Lynch & Co., Inc.

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<Table>
<S>                                                                      <C>
Regular Interest Record Date(s):                                                CD Rate / /
Sinking Fund:                                                                   Commercial Paper Rate / /
Funding Note Calculation Agent:                                                 Federal Funds Rate / /
Authorized Denominations:                                                       Prime Rate / /
Funding Note Collateral: Allstate Life                                          Treasury Rate / /
         Insurance Company Funding                                              Other / / See attached.
         Agreement No(s). / /, all                                       Index Maturity:
         proceeds of such funding                                        Spread and/or Spread Multiplier, if any:
         Agreement(s), all books and records                             Initial Interest Rate, if any:
         pertaining to such Funding                                      Initial Interest Reset Date:
         Agreement(s) and all rights of the                              Interest Reset Dates:
         Trust pertaining to the foregoing.                              Interest Determination Date(s):
Additional/Other Terms:                                                  Interest Payment Dates:
                                                                         Maximum Interest Rate, if any:
                                                                         Minimum Interest Rate, if any:
                                                                         Fixed Rate Commencement Date, if any:
                                                                         Fixed Interest Rate, if any:
                                                                         Day Count Convention:
                                                                         Additional/Other Terms:
</Table>

     This note certificate (the "Funding Note Certificate") represents a duly
authorized funding note (the "Funding Note") of Allstate Life Global Funding, a
statutory trust organized under the laws of the State of Delaware ("Global
Funding"). The Funding Note is being issued in connection with the issuance and
sale by the trust specified above (the "Trust") of the trust notes identified on
Annex A to that certain series instrument to which Global Funding and the Trust
are parties (the "Series Instrument") (the "Trust Notes"). The Funding Note is
being issued under the Funding Note Indenture, dated as of the date hereof (as
amended or supplemented from time to time, the "Indenture") between Global
Funding and J.P. Morgan Trust Company, National Association, as funding note
indenture trustee (including any successor, the "Funding Note Indenture
Trustee"). Capitalized terms used herein and not otherwise defined shall have
the respective meanings ascribed in the Standard Funding Note Indenture Terms,
dated as of [ ] (as amended or supplemented from time to time, the "Standard
Funding Note Indenture Terms").

     Subject to the immediately following paragraph, Global Funding, for value
received, hereby promises to pay to the Holder or Holders of the Funding Note on
the Maturity Date (as defined below) (or on the date of redemption or repayment
by Global Funding) the principal amount of the Funding Note and, if so specified
above, to pay interest from time to time on the Funding Note from the Original
Issue Date specified above (the "Original Issue Date") or from the most recent
Interest Payment Date to which interest has been paid or duly provided for at
the rate per annum determined in accordance with the provisions on the reverse
hereof and as specified above, until the principal of the Funding Note is paid
or made available for payment and to pay such other amounts due and owing with
respect to the Funding Note.

     This Funding Note Certificate shall be surrendered for cancellation by or
on behalf of the Trust, and shall be cancelled by the Funding Note Indenture
Trustee, immediately upon the

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assignment by Global Funding to, or as directed by, the Trust of each funding
agreement identified on Annex A to the Series Instrument (each, a "Funding
Agreement") in accordance with the terms of the Funding Note and the
Coordination Agreement, and such cancellation shall operate as a redemption of
the Funding Note.

     On any exchange or purchase and cancellation of the Funding Note, details
of such exchange or purchase and cancellation shall be entered in the records of
Global Funding. Upon any such exchange or purchase and cancellation, the
principal amount of the Funding Note shall be charged by the principal amount so
exchanged or purchased and cancelled, as provided in the Standard Funding Note
Indenture Terms.

     Unless otherwise set forth above, if the Funding Note is subject to an
Annual Redemption Percentage Reduction as specified above, the Redemption Price
of the portion of the Funding Note represented by this Funding Note Certificate
shall initially be the Initial Redemption Percentage of the principal amount of
the portion of the Funding Note represented by this Funding Note Certificate on
the Initial Redemption Date and shall decline at each anniversary of the Initial
Redemption Date (each such date, a "Redemption Date") by the Annual Redemption
Percentage Reduction of such principal amount until the Redemption Price is 100%
of such principal amount.

     The Funding Note will mature on the earlier of the Stated Maturity Date and
the Maturity Date (as defined in the Trust Notes) of the Trust Notes (the "Trust
Notes Maturity Date"), unless its principal (or, any installment of its
principal) becomes due and payable prior to any such date, whether, as
applicable, by the declaration of acceleration of maturity, notice of redemption
at the option of Global Funding, notice of the Holder's option to elect
repayment or otherwise (the Stated Maturity Date, the Trust Notes Maturity Date
or any date prior to any such date on which the Funding Note becomes due and
payable, as the case may be, are referred to as the "Maturity Date" with respect
to principal of the Funding Note repayable on such date).

     Unless otherwise provided above and except as provided in the following
paragraph, Global Funding will pay interest on each Interest Payment Date
specified above, commencing with the first Interest Payment Date next succeeding
the Original Issue Date, and on the Maturity Date; PROVIDED that any payment of
principal, premium, if any, interest or other amounts to be made on any Interest
Payment Date or on a Maturity Date that is not a Business Day shall be made on
the next succeeding Business Day, PROVIDED, HOWEVER, with respect to an Interest
Payment Date other than the Maturity Date, if the Funding Note is a LIBOR Note
(as defined in Section 3 on the reverse hereof) and that next succeeding
Business Day falls in the next succeeding calendar month, such payment shall be
made on the immediately preceding Business Day.

     Unless otherwise specified above, the interest payable on each Interest
Payment Date or on the Maturity Date will be the amount equal to the interest
accrued from and including the immediately preceding Interest Payment Date in
respect of which interest has been paid or from and including the date of issue,
if no interest has been paid, to but excluding the applicable Interest Payment
Date or the Maturity Date, as the case may be (each, an "Interest Period").

     Reference is hereby made to the further provisions of the Funding Note set
forth on the

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reverse hereof and, if so specified on the face hereof, in an Addendum hereto,
which further provisions shall for all purposes have the same force and effect
as if set forth on the face hereof.

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

     The Funding Note or the portion thereof represented by this Funding Note
Certificate shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been executed by the Funding
Note Indenture Trustee pursuant to the Funding Note Indenture.

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     IN WITNESS WHEREOF, Global Funding has caused this instrument to be duly
executed on its behalf.

Dated: Original Issue Date                ALLSTATE LIFE GLOBAL FUNDING,
                                          as Issuer

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

                          CERTIFICATE OF AUTHENTICATION

     This Funding Note Certificate is one of the Funding Note Certificates
representing the Funding Note described in the within-mentioned Funding Note
Indenture and is being issued in accordance with Section 2.5(f) of the Funding
Note Indenture.

Dated: Original Issue Date                J.P. MORGAN TRUST COMPANY, NATIONAL
                                                  ASSOCIATION,
                                          as Funding Note Indenture Trustee

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

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                        [REVERSE OF DEFINITIVE SECURITY]

     SECTION 1. GENERAL. This Funding Note is being issued pursuant to the
Funding Note Indenture in connection with the issuance and sale by the Trust of
the Trust Notes. The Funding Note shall be surrendered for cancellation by or on
behalf of the Trust, and shall be cancelled by the Funding Note Indenture
Trustee, immediately upon the assignment by Global Funding to, or as directed
by, the Trust of each Funding Agreement, and such cancellation shall operate as
a redemption of the Funding Note.

     SECTION 1. CURRENCY. The Funding Note is denominated in, and payments of
principal, premium, if any, and/or interest, if any, will be made in U.S.
dollars.

     SECTION 2. DETERMINATION OF INTEREST RATE AND OTHER PAYMENT PROVISIONS.

     FIXED RATE NOTE. If the Funding Note is designated on the face hereof as a
"Fixed Rate Note", the Funding Note will bear interest from the Original Issue
Date until the Maturity Date. Unless otherwise specified on the face hereof, the
rate of interest payable on the Funding Note will not be adjusted; unless
otherwise specified on the face hereof, interest will be payable on the Interest
Payment Dates set forth on the face hereof and at the Maturity Date. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. If any
Interest Payment Date or the Maturity Date of a Fixed Rate Note falls on a day
that is not a Business Day, any payments of principal, premium, if any, and/or
interest or other amounts required to be made, may be made on the next
succeeding Business Day, and no additional interest will accrue in respect of
the payment made on that next succeeding Business Day.

     DISCOUNT NOTE. If the Funding Note is designated on the face hereof as a
"Discount Notes" (as defined below), payments in respect of the Funding Note
shall be made as set forth on the face hereof. In the event a Discount Note is
redeemed, repaid or accelerated, the amount payable to the Holder of the
Discount Note on the Maturity Date will be equal to the sum of (1) the Issue
Price (increased by any accruals of discount) and, in the event of any
redemption of such Discount Note, if applicable, multiplied by the Initial
Redemption Percentage (as adjusted by the Annual Redemption Percentage
Reduction, if applicable); and (2) any unpaid interest accrued on the Discount
Note to the date of redemption, repayment or acceleration of maturity, as
applicable. For purposes of determining the amount of discount that has accrued
as of any date on which a redemption, repayment or acceleration of maturity of
the Funding Note occurs for a Discount Note, the discount will be accrued using
a constant yield method. The constant yield will be calculated using a 30-day
month, 360-day year convention, a compounding period that, except for the
Initial Period (as defined below), corresponds to the shortest period between
Interest Payment Dates for a Discount Note (with ratable accruals within a
compounding period), a coupon rate equal to the initial coupon rate applicable
to a Discount Note and an assumption that the maturity of such Discount Note
will not be accelerated. If the period from the date of issue to the first
Interest Payment Date for a Discount Note (the "Initial Period") is shorter than
the compounding period for such Discount Note, a proportionate amount of the
yield for an entire compounding period will be accrued. If the Initial Period is
longer than the compounding period, then the period will be divided into a
regular compounding period and a short period with the short period being
treated as provided in the preceding sentence. The Funding Note is a "Discount
Note" if its Issue Price is less than 100% of the principal amount thereof by
more than

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a percentage equal to the product of 0.25% and the number of full years to the
Stated Maturity Date.

     FLOATING RATE NOTE. If the Funding Note is specified on the face hereof as
"Floating Rate Note", interest on the Funding Note shall accrue and be payable
in accordance with this Section 3. A Floating Rate Note may be a CD Rate Note,
CMT Rate Note, Commercial Paper Rate Note, Federal Funds Rate Note, LIBOR Note,
Prime Rate Note, Treasury Rate Note, or as otherwise set forth on the face
hereof. If the Funding Note is designated on the face hereof as Floating Rate
Note, the face hereof will specify whether the Funding Note is a Regular
Floating Rate Note or Floating Rate/Fixed Rate Note. For the period from the
date of issue to, but not including, the first Interest Reset Date set forth on
the face hereof, the interest rate hereon shall be the Initial Interest Rate
specified on the face hereof. Thereafter, the interest rate hereon will be reset
as of and be effective as of each Interest Reset Date.

     (A)  If any Interest Reset Date would otherwise be a day that is not a
          Business Day, such Interest Reset Date shall be postponed to the next
          day that is a Business Day; PROVIDED, HOWEVER, that if the Funding
          Note is a LIBOR Note and such Business Day is in the next succeeding
          calendar month, such Interest Reset Date shall be the Business Day
          immediately preceding such Interest Reset Date.

     (B)  Unless specified otherwise on the face hereof, Interest Reset Dates
          are as follows: (1) if the Funding Note resets daily, each Business
          Day, (2) if the Funding Note resets weekly, other than a Treasury Rate
          Note, the Wednesday of each week, (3) if the Funding Note is a
          Treasury Rate Note that resets weekly, and except as provided below
          under "Treasury Rate Note", the Tuesday of each week, (4) if the
          Funding Note resets monthly, the third Wednesday of each month, (5) if
          the Funding Note resets quarterly, the third Wednesday of March, June,
          September and December of each year, (6) if the Funding Note resets
          semiannually, the third Wednesday of each of the two months specified
          on the face hereof and (7) if the Funding Note resets annually, the
          third Wednesday of the month specified each year; PROVIDED, HOWEVER,
          that with respect to a Floating Rate/ Fixed Rate Note, the rate of
          interest thereon will not reset after the particular Fixed Rate
          Commencement Date specified on the face hereof (the "Fixed Rate
          Commencement Date").

     (C)  Accrued interest is calculated by multiplying the principal amount of
          the Floating Rate Note by an accrued interest factor. The accrued
          interest factor is computed by adding the interest factor calculated
          for each day in the particular Interest Period. The interest factor
          for each day will be computed by dividing the interest rate applicable
          to such day by 360, in the case of a Floating Rate Note as to which
          the CD Rate, the Commercial Paper Rate, the Federal Funds Rate, LIBOR
          or the Prime Rate is an applicable Interest Rate Basis (as defined
          below), or by the actual number of days in the year, in the case of a
          Floating Rate Note as to which the CMT Rate or the Treasury Rate is an
          applicable Interest Rate Basis. The interest factor for a Floating
          Rate Note as to which the interest rate is calculated with reference
          to two or more Interest Rate Bases will be calculated in each period
          in the same manner as if only the applicable Interest Rate Basis
          specified

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          on the face hereof applied. The interest rate shall be set forth on
          the face hereof. For purposes of making the foregoing calculation, the
          interest rate in effect on any Interest Reset Date will be the
          applicable rate as reset on that date. Unless otherwise specified on
          the face hereof, the interest rate that is effective on the applicable
          Interest Reset Date will be determined on the applicable Interest
          Determination Date and calculated on the applicable Funding Note
          Funding Note Calculation Date (as defined below). "Funding Note
          Calculation Date" means the date by which the Funding Note Calculation
          Agent designated on the face hereof, is to calculate the interest rate
          which will be the earlier of (1) the tenth calendar day after the
          particular Interest Determination Date or, if such day is not a
          Business Day, the next succeeding Business Day; or (2) the Business
          Day immediately preceding the applicable Interest Payment Date or the
          Maturity Date, as the case may be.

     (D)  Unless otherwise specified on the face hereof, all percentages
          resulting from any calculation on a Floating Rate Note will be rounded
          to the nearest one hundred-thousandth of a percentage point, with five
          one-millionths of a percentage point rounded upwards. All dollar
          amounts used in or resulting from any calculation on a Floating Rate
          Note will be rounded to the nearest cent.

     Unless otherwise specified on the face hereof and except as provided below,
interest will be payable as follows: (1) if the Interest Reset Date for the
Funding Note is daily, weekly or monthly, interest will be payable on the third
Wednesday of each month or on the third Wednesday of March, June, September and
December of each year, as specified on the face hereof, (2) if the Interest
Reset Date for the Funding Note is quarterly, interest will be payable on the
third Wednesday of March, June, September, and December of each year, (3) if the
Interest Reset Date for the Funding Note is semiannually, interest will be
payable on the third Wednesday of each of two months specified on the face
hereof of each year, (4) if the Interest Reset Date for the Funding Note is
annually, interest will be payable on the third Wednesday of the month specified
on the face hereof of each year. In each of these cases, interest will also be
payable on the Maturity Date.

     If specified on the face hereof, the Funding Note may have either or both
of a Maximum Interest Rate or Minimum Interest Rate. If a Maximum Interest Rate
is so designated, the interest rate that may accrue during any Interest Period
for a Floating Rate Note cannot ever exceed such Maximum Interest Rate and in
the event that the interest rate on any Interest Reset Date would exceed such
Maximum Interest Rate (as if no Maximum Interest Rate were in effect) then the
interest rate on such Interest Reset Date shall be the Maximum Interest Rate. If
a Minimum Interest Rate is so designated, the interest rate that may accrue
during any Interest Period for a Floating Rate Note cannot ever be less than
such Minimum Interest Rate and in the event that the interest rate on any
Interest Reset Date would be less than such Minimum Interest Rate (as if no
Minimum Interest Rate were in effect) then the interest rate on such Interest
Reset Date shall be the Minimum Interest Rate. Notwithstanding anything to the
contrary contained herein, if the Funding Note is designated on the face hereof
as a Floating Rate Note, the interest rate on the Funding Note shall not exceed
the maximum interest rate permitted by applicable law.

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     All determinations of interest by the Funding Note Calculation Agent
designated on the face hereof will, in the absence of manifest error, be
conclusive for all purposes and binding on the Holder of the Funding Note and
neither the Funding Note Indenture Trustee nor the Funding Note Calculation
Agent shall have any liability to the Holder of the Funding Note in respect of
any determination, calculation, quote or rate made or provided by the Funding
Note Calculation Agent. Upon request of the Holder of the Funding Note, the
Funding Note Calculation Agent will provide the interest rate then in effect
and, if determined, the interest rate that will become effective on the next
Interest Reset Date with respect to the Funding Note. If the Funding Note
Calculation Agent is incapable or unwilling to act as such or if the Funding
Note Calculation Agent fails duly to establish the interest rate for any
interest accrual period or to calculate the interest amount or any other
requirements, Global Funding will appoint a successor to act as such in its
place. The Funding Note Calculation Agent may not resign its duties until a
successor has been appointed and such successor has accepted its appointment.

     Subject to applicable provisions of law and except as specified herein, on
each Interest Reset Date, the rate of interest on the Funding Note on and after
the first Interest Reset Date shall be the interest rate determined in
accordance with the provisions of the heading below which has been designated as
the Interest Rate Basis on the face hereof (the "Interest Rate Basis"), the base
rate, plus or minus the Spread, if any, specified on the face hereof and/or
multiplied by the Spread Multiplier, if any, specified on the face hereof.

     (A)  CD RATE NOTE. If the Interest Rate Basis is the CD Rate, the Funding
          Note shall be deemed to be a "CD Rate Note." A CD Rate Note will bear
          interest at the interest rate calculated with reference to the CD Rate
          and the Spread or Spread Multiplier, if any. The Funding Note
          Calculation Agent will determine the CD Rate on each Interest
          Determination Date. The Interest Determination Date is the second
          Business Day immediately preceding the related Interest Reset Date.
          "CD Rate" means the rate on the particular Interest Determination Date
          for negotiable United States dollar certificates of deposit having the
          Index Maturity specified on the face hereof as published in H.15(519)
          (as defined below) under the caption "CDs (secondary market)", or, if
          not so published by 3:00 P.M., New York City time, on the related
          Funding Note Calculation Date, the rate on the particular Interest
          Determination Date for negotiable United States dollar certificates of
          the particular Index Maturity as published in the H.15 Daily Update
          (as defined below) or other recognized electronic source used for the
          purpose of displaying the applicable rate under the heading "CDs
          (secondary market)." If such rate is not yet published in either
          H.15(519) or the H.15 Daily Update by 3:00 P.M., New York City time,
          on the related Funding Note Calculation Date, then the CD Rate will be
          the rate on the particular Interest Determination Date calculated by
          the Funding Note Calculation Agent as the arithmetic mean of the
          secondary market offered rates as of 10:00 A.M., New York City time on
          that Interest Determination Date of three leading nonbank dealers in
          negotiable United States dollar certificates of deposit in The City of
          New York (which may include the Agents or their affiliates) selected
          by the Funding Note Calculation Agent for negotiable United States
          dollar certificates of deposit of major United States

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          money market banks for negotiable United States certificates of
          deposit with a remaining maturity closest to the particular Index
          Maturity in an amount that is representative for a single transaction
          in that market at that time, or, if the dealers so selected by the
          Funding Note Calculation Agent are not quoting as described in the
          preceding sentence, the CD Rate in effect on the particular Interest
          Determination Date. "H.15(519)" means the weekly statistical release
          designated as H.15(519), or any successor publication, published by
          the Board of Governors of the Federal Reserve System; and "H.15 Daily
          Update" means the daily update of H.15(519), available through the
          Board of Governors of the Federal Reserve System at
          http://www.federalreserve.gov/releases/H15/update, or any successor
          site or publication.

     (B)  CMT RATE NOTE. If the Interest Basis is the CMT Rate, the Funding Note
          shall be deemed to be a "CMT Rate Note." A CMT Rate Note will bear
          interest at the interest rate calculated with reference to the CMT
          Rate and the Spread or Spread Multiplier, if any. The Funding Note
          Calculation Agent will determine the CMT Rate on each applicable
          Interest Determination Date. The applicable Interest Determination
          Date is the second Business Day prior to the Interest Reset Date. "CMT
          Rate" means (1) if CMT Moneyline Telerate Page 7051 is specified on
          the face hereof: (a) the percentage equal to the yield for United
          States Treasury securities at "constant maturity" having the Index
          Maturity specified on the face hereof as published in H.15(519) under
          the caption "Treasury Constant Maturities", as the yield is displayed
          on Moneyline Telerate (or any successor service) on page 7051 (or any
          other page as may replace the specified page on that service)
          ("Moneyline Telerate Page 7051"), for the particular Interest
          Determination Date, or (b) if the rate referred to in clause (a) does
          not so appear on Moneyline Telerate Page 7051, the percentage equal to
          the yield for United States Treasury securities at "constant maturity"
          having the particular Index Maturity and for the particular Interest
          Determination Date as published in H.15(519) under the caption
          "Treasury Constant Maturities", or (c) if the rate referred to in
          clause (b) does not so appear in H.15(519), the rate on the particular
          Interest Determination Date for the period of the particular Index
          Maturity as may then be published by either the Federal Reserve System
          Board of Governors or the United States Department of the Treasury
          that the Funding Note Calculation Agent determines to be comparable to
          the rate which would otherwise have been published in H.15(519), or
          (d) if the rate referred to in clause (c) is not so published, the
          rate on the particular Interest Determination Date calculated by the
          Funding Note Calculation Agent as a yield to maturity based on the
          arithmetic mean of the secondary market bid prices at approximately
          3:30 P.M., New York City time, on that Interest Determination Date of
          three leading primary United States government securities dealers in
          The City of New York (which may include the Agents or their
          affiliates) (each, a "Reference Dealer"), selected by the Funding Note
          Calculation Agent from five Reference Dealers selected by the Funding
          Note Calculation Agent and eliminating the highest quotation, or, in
          the event of equality, one of the highest, and the lowest quotation
          or, in the event of equality, one of the lowest, for United States
          Treasury securities with an original maturity equal to the particular
          Index Maturity, a remaining term to maturity no

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          more than one year shorter than that Index Maturity and in a principal
          amount that is representative for a single transaction in the
          securities in that market at that time, or (e) if fewer than five but
          more than two of the prices referred to in clause (d) are provided as
          requested, the rate on the particular Interest Determination Date
          calculated by the Funding Note Calculation Agent based on the
          arithmetic mean of the bid prices obtained and neither the highest nor
          the lowest of the quotations shall be eliminated, or (f) if fewer than
          three prices referred to in clause (d) are provided as requested, the
          rate on the particular Interest Determination Date calculated by the
          Funding Note Calculation Agent as a yield to maturity based on the
          arithmetic mean of the secondary market bid prices as of approximately
          3:30 P.M., New York City time, on that Interest Determination Date of
          three Reference Dealers selected by the Funding Note Calculation Agent
          from five Reference Dealers selected by the Funding Note Calculation
          Agent and eliminating the highest quotation or, in the event of
          equality, one of the highest and the lowest quotation or, in the event
          of equality, one of the lowest, for United States Treasury securities
          with an original maturity greater than the particular Index Maturity,
          a remaining term to maturity closest to that Index Maturity and in a
          principal amount that is representative for a single transaction in
          the securities in that market at that time, or (g) if fewer than five
          but more than two prices referred to in clause (f) are provided as
          requested, the rate on the particular Interest Determination Date
          calculated by the Funding Note Calculation Agent based on the
          arithmetic mean of the bid prices obtained and neither the highest nor
          the lowest of the quotations will be eliminated, or (h) if fewer than
          three prices referred to in clause (f) are provided as requested, the
          CMT Rate in effect on the particular Interest Determination Date; (2)
          if CMT Moneyline Telerate Page 7052 is specified on the face hereof
          (a) the percentage equal to the one-week or one-month, as specified on
          the face hereof, average yield for United States Treasury securities
          at "constant maturity" having the Index Maturity specified on the face
          hereof as published in H.15(519) opposite the caption "Treasury
          Constant Maturities", as the yield is displayed on Moneyline Telerate
          (or any successor service) (on page 7052 or any other page as may
          replace the specified page on that service) ("Moneyline Telerate Page
          7052"), for the week or month, as applicable, ended immediately
          preceding the week or month, as applicable, in which the particular
          Interest Determination Date falls, or (b) if the rate referred to in
          clause (a) does not so appear on Moneyline Telerate Page 7052, the
          percentage equal to the one-week or one-month, as specified on the
          face hereof, average yield for United States Treasury securities at
          "constant maturity" having the particular Index Maturity and for the
          week or month, as applicable, preceding the particular Interest
          Determination Date as published in H.15(519) opposite the caption
          "Treasury Constant Maturities", or (c) if the rate referred to in
          clause (b) does not so appear in H.15(519), the one-week or one-month,
          as specified on the face hereof, average yield for United States
          Treasury securities at "constant maturity" having the particular Index
          Maturity as otherwise announced by the Federal Reserve Bank of New
          York for the week or month, as applicable, ended immediately preceding
          the week or month, as applicable, in which the particular Interest
          Determination Date falls, or (d) if the rate referred to

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          in clause (c) is not so published, the rate on the particular Interest
          Determination Date calculated by the Funding Note Calculation Agent as
          a yield to maturity based on the arithmetic mean of the secondary
          market bid prices at approximately 3:30 P.M., New York City time, on
          that Interest Determination Date of three Reference Dealers selected
          by the Funding Note Calculation Agent from five Reference Dealers
          selected by the Funding Note Calculation Agent and eliminating the
          highest quotation, or, in the event of equality, one of the highest,
          and the lowest quotation or, in the event of equality, one of the
          lowest, for United States Treasury securities with an original
          maturity equal to the particular Index Maturity, a remaining term to
          maturity no more than one year shorter than that Index Maturity and in
          a principal amount that is representative for a single transaction in
          the securities in that market at that time, or (e) if fewer than five
          but more than two of the prices referred to in clause (d) are provided
          as requested, the rate on the particular Interest Determination Date
          calculated by the Funding Note Calculation Agent based on the
          arithmetic mean of the bid prices obtained and neither the highest nor
          the lowest of the quotations shall be eliminated, or (f) if fewer than
          three prices referred to in clause (d) are provided as requested, the
          rate on the particular Interest Determination Date calculated by the
          Funding Note Calculation Agent as a yield to maturity based on the
          arithmetic mean of the secondary market bid prices as of approximately
          3:30 P.M., New York City time, on that Interest Determination Date of
          three Reference Dealers selected by the Funding Note Calculation Agent
          from five Reference Dealers selected by the Funding Note Calculation
          Agent and eliminating the highest quotation or, in the event of
          equality, one of the highest and the lowest quotation or, in the event
          of equality, one of the lowest, for United States Treasury securities
          with an original maturity greater than the particular Index Maturity,
          a remaining term to maturity closest to that Index Maturity and in a
          principal amount that is representative for a single transaction in
          the securities in that market at the time, or (g) if fewer than five
          but more than two prices referred to in clause (f) are provided as
          requested, the rate on the particular Interest Determination Date
          calculated by the Funding Note Calculation Agent based on the
          arithmetic mean of the bid prices obtained and neither the highest nor
          the lowest of the quotations will be eliminated, or (h) if fewer than
          three prices referred to in clause (f) are provided as requested, the
          CMT Rate in effect on that Interest Determination Date.

               If two United States Treasury securities with an original
               maturity greater than the Index Maturity specified on the face
               hereof have remaining terms to maturity equally close to the
               particular Index Maturity, the quotes for the United States
               Treasury security with the shorter original remaining term to
               maturity will be used.

     (C)  COMMERCIAL PAPER RATE NOTE. If the Interest Rate Basis is the
          Commercial Paper Rate, the Funding Note shall be deemed to be a
          "Commercial Paper Rate Note." A Commercial Paper Rate Note will bear
          interest for each Interest Reset Date at the interest rate calculated
          with reference to the Commercial Paper Rate and the Spread or Spread
          Multiplier, if any. The Funding Note Calculation Agent will determine
          the Commercial Paper Rate on each applicable Interest Determination

                                      A-12
<Page>

          Date. The Interest Determination Date is the Business Day immediately
          preceding the related Interest Reset Date. "Commercial Paper Rate"
          means the Money Market Yield (calculated as described below) on the
          Interest Determination Date of the rate for commercial paper having
          the applicable Index Maturity as such rate is published in H.15(519)
          under the heading "Commercial Paper -- Nonfinancial." If such rate is
          not published by 3:00 P.M., New York City time, on the Funding Note
          Calculation Date pertaining to such Interest Determination Date, then
          the Commercial Paper Rate shall be the Money Market Yield on the
          particular Interest Determination Date of the rate for commercial
          paper having the particular Index Maturity as published on H.15 Daily
          Update or such other recognized electronic source used for the
          purposes of displaying the applicable rate, under the caption
          "Commercial Paper -- Nonfinancial", or if such rate is not published
          by 3:00 P.M., New York City time, on the Funding Note Calculation
          Date, then the Commercial Paper Rate as calculated by the Funding Note
          Calculation Agent shall be the Money Market Yield of the arithmetic
          mean of the offered rates at approximately 11:00 A.M., New York City
          time, on that Interest Determination Date of three leading dealers of
          United States dollar commercial paper in The City of New York (which
          may include the Agents or their affiliates) selected by the Funding
          Note Calculation Agent for commercial paper having the particular
          Index Maturity placed for industrial issuers whose bond rating is
          "Aa", or the equivalent, from a nationally recognized statistical
          rating organization; PROVIDED, HOWEVER, that if the dealers selected
          by the Funding Note Calculation Agent are not quoting offered rates as
          mentioned above, the Commercial Paper Rate in effect on the particular
          Interest Determination Date.

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

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

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

     (D)  FEDERAL FUNDS RATE NOTE. If the Interest Rate Basis is the Federal
          Funds Rate, the Funding Note shall be deemed to be a "Federal Funds
          Rate Note." A Federal Funds Rate Note will bear interest for each
          Interest Reset Date at the interest rate calculated with reference to
          the Federal Funds Rate and the Spread or Spread Multiplier, if any.
          The Funding Note Calculation Agent will determine the Federal Funds
          Rate on each applicable Interest Determination Date. The Interest
          Determination Date is the Business Day immediately preceding the
          related Interest Reset Date. "Federal Funds Rate" means (1) the rate
          on the particular Interest Determination Date for United States dollar
          federal funds as published in H.15(519) under the caption "Federal
          Funds (Effective)" and displayed on Moneyline Telerate (or any
          successor service) on page 120 (or any other page as may replace the
          specified page on that service) ("Moneyline Telerate Page 120"), or
          (2) if the rate referred to in clause (1) does not so appear on
          Moneyline Telerate

                                      A-13
<Page>

          Page 120 or is not so published by 3:00 P.M., New York City time, on
          the related Funding Note Calculation Date, the rate on the particular
          Interest Determination Date for United States dollar federal funds as
          published in H.15 Daily Update, or such other recognized electronic
          source used for the purpose of displaying the applicable rate, under
          the caption "Federal Funds (Effective)", or (3) if the rate referred
          to in clause (2) is not so published by 3:00 P.M., New York City time,
          on the related Funding Note Calculation Date, the rate on the
          particular Interest Determination Date calculated by the Funding Note
          Calculation Agent as the arithmetic mean of the rates for the last
          transaction in overnight United States dollar federal funds arranged
          by three leading brokers of United States dollar federal funds
          transactions in The City of New York (which may include the Agents or
          their affiliates), selected by the Funding Note Calculation Agent
          prior to 9:00 A.M., New York City time, on that Interest Determination
          Date, or (4) if the brokers so selected by the Funding Note
          Calculation Agent are not quoting as mentioned in clause (3), the
          Federal Funds Rate in effect on the particular Interest Determination
          Date.

     (E)  LIBOR NOTE. If the Interest Rate Basis is LIBOR (as defined below),
          the Funding Note shall be deemed to be a "LIBOR Note." A LIBOR Note
          will bear interest for each Interest Period at the interest rate
          calculated with reference to LIBOR and the Spread or Spread
          Multiplier, if any. On each applicable Interest Determination Date the
          Funding Note Calculation Agent will determine LIBOR. The applicable
          Interest Determination Date is the second London Banking Day preceding
          the related Interest Reset Date.

               LIBOR means: (1) if "LIBOR Moneyline Telerate" is specified on
               the face hereof or if neither "LIBOR Reuters" nor "LIBOR
               Moneyline Telerate" is specified on the face hereof as the method
               for calculating LIBOR, the rate for deposits in the LIBOR
               Currency (as defined below) having the Index Maturity specified
               on the face hereof, commencing on the related Interest Reset
               Date, that appears on the LIBOR Page (as defined below) as of
               11:00 A.M., London time, on the particular Interest Determination
               Date, or (2) if "LIBOR Reuters" is specified on the face hereof,
               the arithmetic mean of the offered rates, calculated by the
               Funding Note Calculation Agent, or the offered rate, if the LIBOR
               Page by its terms provides only for a single rate, for deposits
               in the LIBOR Currency having the particular Index Maturity,
               commencing on the related Interest Reset Date, that appear or
               appears, as the case may be, on the LIBOR Page as of 11:00 A.M.,
               London time, on the particular Interest Determination Date, or
               (3) if fewer than two offered rates appear, or no rate appears,
               as the case may be, on the particular Interest Determination Date
               on the LIBOR Page as specified in clause (1) or (2), as
               applicable, the rate calculated by the Funding Note Calculation
               Agent of at least two offered quotations obtained by the Funding
               Note Calculation Agent after requesting the principal London
               offices of each of four major reference banks (which may include
               affiliates of the Agents), in the London interbank market to
               provide the Funding Note Calculation Agent with its

                                      A-14
<Page>

               offered quotation for deposits in the LIBOR Currency for the
               period of the particular Index Maturity, commencing on the
               related Interest Reset Date, to prime banks in the London
               interbank market at approximately 11:00 A.M., London time, on
               that Interest Determination Date and in a principal amount that
               is representative for a single transaction in the LIBOR Currency
               in that market at that time, or (4) if fewer than two offered
               quotations referred to in clause (3) are provided as requested,
               the rate calculated by the Funding Note Calculation Agent as the
               arithmetic mean of the rates quoted at approximately 11:00 A.M.,
               in the applicable Principal Financial Center, on the particular
               Interest Determination Date by three major banks (which may
               include affiliates of the Agents), in that Principal Financial
               Center selected by the Funding Note Calculation Agent for loans
               in the LIBOR Currency to leading European banks, having the
               particular Index Maturity and in a principal amount that is
               representative for a single transaction in the LIBOR Currency in
               that market at that time, or (5) if the banks so selected by the
               Funding Note Calculation Agent are not quoting as mentioned in
               clause (4), LIBOR in effect on the particular Interest
               Determination Date.

               "LIBOR Currency" means United States dollars.

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

     (F)  PRIME RATE NOTE. If the Interest Rate Basis is the Prime Rate, the
          Funding Note shall be deemed to be "Prime Rate Note." Prime Rate Note
          will bear interest for each Interest Reset Date calculated with
          reference to the Prime Rate and the Spread or Spread Multiplier, if
          any, subject to the Minimum Interest Rate and/or Maximum Interest
          Rate, if any, specified on the face hereof. The Funding Note
          Calculation Agent will determine the Prime Rate for each Interest
          Reset Date on each applicable Interest Determination Date. The
          Interest Determination Date is the Business Day immediately preceding
          the related Interest Reset Date. "Prime Rate" means (1) the rate on
          the particular Interest Determination Date as published in H.15(519)
          under the caption "Bank Prime Loan", or (2) if the rate referred to in
          clause (1) is not so published by 3:00 P.M., New York City time, on
          the related Funding Note Calculation Date, the rate on the particular
          Interest Determination Date as published in H.15 Daily Update, or such
          other recognized

                                      A-15
<Page>

          electronic source used for the purpose of displaying the applicable
          rate, under the caption "Bank Prime Loan", or (3) if the rate referred
          to in clause (2) is not so published by 3:00 P.M., New York City time,
          on the related Funding Note Calculation Date, the rate on the
          particular Interest Determination Date calculated by the Funding Note
          Calculation Agent as the arithmetic mean of the rates of interest
          publicly announced by each bank that appears on the Reuters Screen US
          PRIME 1 Page (as defined below) as the applicable bank's prime rate or
          base lending rate as of 11:00 A.M., New York City time, on that
          Interest Determination Date, or (4) if fewer than four rates referred
          to in clause (3) are so published by 3:00 P.M., New York City time, on
          the related Funding Note Calculation Date, the rate on the particular
          Interest Determination Date calculated by the Funding Note Calculation
          Agent as the arithmetic mean of the prime rates or base lending rates
          quoted on the basis of the actual number of days in the year divided
          by a 360-day year as of the close of business on that Interest
          Determination Date by three major banks (which may include affiliates
          of the Agents) in The City of New York selected by the Funding Note
          Calculation Agent, or (5) if the banks so selected by the Funding Note
          Calculation Agent are not quoting as mentioned in clause (4), the
          Prime Rate in effect on the particular Interest Determination Date.
          "Reuters Screen US PRIME 1 Page" means the display on the Reuter
          Monitor Money Rates Service (or any successor service) on the "US
          PRIME 1" page (or any other page as may replace that page on that
          service) for the purpose of displaying prime rates or base lending
          rates of major United States banks.

     (G)  TREASURY RATE NOTE. If the Interest Rate Basis is the Treasury Rate,
          the Funding Note shall be deemed to be a "Treasury Rate Note." A
          Treasury Rate Note will bear interest for each Interest Reset Date at
          the interest rate calculated with reference to the Treasury Rate and
          the Spread or Spread Multiplier, if any. The Funding Note Calculation
          Agent will determine the Treasury Rate on each Treasury Rate
          Determination Date (as defined below). "Treasury Rate" means (1) the
          rate from the auction held on the Treasury Rate Interest Determination
          Date (the "Auction") of direct obligations of the United States
          ("Treasury Bills") having the Index Maturity specified on the face
          hereof under the caption "INVESTMENT RATE" on the display on Moneyline
          Telerate (or any successor service) on page 56 (or any other page as
          may replace that page on that service) ("Moneyline Telerate Page 56")
          or page 57 (or any other page as may replace that page on that
          service) ("Moneyline Telerate Page 57"), or (2) if the rate referred
          to in clause (1) is not so published by 3:00 P.M., New York City time,
          on the related Funding Note Calculation Date, the Bond Equivalent
          Yield (as defined below) of the rate for the applicable Treasury Bills
          as published in H.15 Daily Update, or another recognized electronic
          source used for the purpose of displaying the applicable rate, under
          the caption "U.S. Government Securities/Treasury Bills/Auction High",
          or (3) if the rate referred to in clause (2) is not so published by
          3:00 P.M., New York City time, on the related Funding Note Calculation
          Date, the Bond Equivalent Yield of the auction rate of the applicable
          Treasury Bills as announced by the United States Department of the
          Treasury, or (4) if the rate referred to in clause (3) is not so
          announced by the United States Department of

                                      A-16
<Page>

          the Treasury, or if the Auction is not held, the Bond Equivalent Yield
          of the rate on the particular Interest Determination Date of the
          applicable Treasury Bills as published in H.15(519) under the caption
          "U.S. Government Securities/Treasury Bills/Secondary Market", or (5)
          if the rate referred to in clause (4) is not so published by 3:00
          P.M., New York City time, on the related Funding Note Calculation
          Date, the rate on the particular Interest Determination Date of the
          applicable Treasury Bills as published in H.15 Daily Update, or
          another recognized electronic source used for the purpose of
          displaying the applicable rate, under the caption "U.S. Government
          Securities/Treasury Bills/Secondary Market", or (6) if the rate
          referred to in clause (5) is not so published by 3:00 P.M., New York
          City time, on the related Funding Note Calculation Date, the rate on
          the particular Interest Determination Date calculated by the Funding
          Note Calculation Agent as the Bond Equivalent Yield of the arithmetic
          mean of the secondary market bid rates, as of approximately 3:30 P.M.,
          New York City time, on that Interest Determination Date, of three
          primary United States government securities dealers (which may include
          the Agents or their affiliates) selected by the Funding Note
          Calculation Agent, for the issue of Treasury Bills with a remaining
          maturity closest to the Index Maturity specified on the face hereof,
          or (7) if the dealers so selected by the Funding Note Calculation
          Agent are not quoting as mentioned in clause (6), the Treasury Rate in
          effect on the particular Interest Determination Date.

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

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

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

               The "Treasury Rate Determination Date" for each Interest Reset
               Date means the day in the week in which the related Interest
               Reset Date falls on which day Treasury Bills are normally
               auctioned (i.e., Treasury Bills are normally sold at auction on
               Monday of each week, unless that day is a legal holiday, in which
               case the auction is normally held on the following Tuesday,
               except that the auction may be held on the preceding Friday);
               PROVIDED, HOWEVER, that if an auction is held on the Friday of
               the week preceding the related Interest Reset Date, the Interest
               Determination Date will be the preceding Friday.

     (H)  REGULAR FLOATING RATE NOTE. Unless the Funding Note is designated as a
          Floating Rate/Fixed Rate Note or as having an Addendum attached or
          having other/additional provisions apply, in each case relating to a
          different interest rate formula, such Note that bears interest at
          floating rates will be a Regular Floating

                                      A-17
<Page>

          Rate Note and will bear interest at the rate determined by reference
          to the applicable Interest Rate Basis or Bases plus or minus the
          applicable Spread, if any, and/or multiplied by the applicable Spread
          Multiplier, if any. Commencing on the first Interest Reset Date, as
          specified on the face hereof, the rate at which interest on a Regular
          Floating Rate Note is payable will be reset as of each Interest Reset
          Date; PROVIDED, HOWEVER, that the interest rate in effect for the
          period, if any, from the date of issue to the first Interest Reset
          Date will be the Initial Interest Rate.

     (I)  FLOATING RATE/FIXED RATE NOTE. If the Funding Note is designated as a
          "Floating Rate/Fixed Rate Note" on the face hereof, such Note that
          bears interest at floating rates will bear interest at the rate
          determined by reference to the applicable Interest Rate Basis or Bases
          plus or minus the applicable Spread, if any, and/or multiplied by the
          applicable Spread Multiplier, if any. Commencing on the first Interest
          Reset Date, the rate at which interest on a Floating Rate/Fixed Rate
          Note is payable will be reset as of each Interest Reset Date;
          PROVIDED, HOWEVER, that the interest rate in effect for the period, if
          any, from the date of issue to the first Interest Reset Date will be
          the Initial Interest Rate, as specified on the face hereof; and the
          interest rate in effect commencing on the Fixed Rate Commencement Date
          will be the Fixed Interest Rate, if specified on the face hereof, or,
          if not so specified, the interest rate in effect on the day
          immediately preceding the Fixed Rate Commencement Date.

     SECTION 3. OPTIONAL REDEMPTION. If any Initial Redemption Date is specified
on the face hereof, Global Funding may redeem the Funding Note prior to the
Stated Maturity Date at its option on any Business Day on or after the Date
Initial Redemption in whole or from time to time in part in increments of $1,000
or any other integral multiple of an authorized denomination specified on the
face hereof at the applicable Redemption Price (as defined below) together with
any unpaid interest accrued on the Funding Note, any Additional Amounts and
other amounts payable with respect thereto, as of the Redemption Date. Unless
otherwise specified in the Funding Note Indenture or on the face hereof, Global
Funding shall give a notice of such redemption to the Holder of any portion of
the Funding Note to be redeemed not more than 60 nor less than 30 days prior to
the Redemption Date. "Redemption Price" means an amount equal to the Initial
Redemption Percentage specified on the face hereof (as adjusted by the Annual
Redemption Percentage Reduction, if applicable) multiplied by the unpaid
principal amount of the Funding Note to be redeemed. The Initial Redemption
Percentage, if any, shall decline at each anniversary of the Initial Redemption
Date by an amount equal to the applicable Annual Redemption Percentage
Reduction, if any, until the Redemption Price is equal to 100% of the unpaid
amount the Funding Note to be redeemed.

     SECTION 4. SINKING FUND. Unless otherwise specified on the face hereof, the
Funding Note will not be subject to, or entitled to the benefit of, any sinking
fund.

     SECTION 4. MODIFICATIONS AND AMENDMENTS. The Funding Note Indenture
contains provisions permitting Global Funding and the Funding Note Indenture
Trustee (1) without the consent of any Holder, to execute Supplemental Funding
Note Indentures for limited purposes and take other actions set forth in the
Funding Note Indenture, and (2) with the consent of the

                                      A-18
<Page>

Holder or Holders of not less than 66 2/3% of the outstanding principal amount
of the Funding Note, evidenced as provided in the Funding Note Indenture, to
execute Supplemental Funding Note Indentures adding any provisions to or
changing in any manner or eliminating any of the provisions of the Funding Note
Indenture or any Supplemental Funding Note Indenture or modifying in any manner
the rights of the Holder or Holders of the Funding Note subject to specified
limitations.

     SECTION 5. OBLIGATIONS UNCONDITIONAL. No reference herein to the Funding
Note Indenture and no provision of the Funding Note or of the Funding Note
Indenture shall alter or impair the obligation of Global Funding, which is
absolute and unconditional, to pay the principal of, interest on, or any other
amount due and owing with respect to, the Funding Note at the places, at the
respective times, at the rate, and in the coin or currency, herein prescribed.

     SECTION 6. FUNDING NOTE COLLATERAL. Pursuant to the Funding Note Indenture,
Global Funding will pledge and collaterally assign the relevant Funding
Agreement(s) issued by the Funding Agreement Provider in connection with the
issuance of the Funding Note (each, a "Funding Agreement") to the Funding Note
Indenture Trustee. The Funding Note will be secured by the Security Interest in
the Funding Note Collateral in favor of the Funding Note Indenture Trustee for
the benefit of each Holder of the Funding Note and each other person for whose
benefit the Funding Note Indenture Trustee is or will be holding the Funding
Note Collateral (the "Secured Parties").

     SECTION 7. SECURITY; LIMITED RECOURSE. The Funding Note is solely the
obligation of Global Funding, and will not be guaranteed by any person,
including but not limited to the Funding Agreement Provider, any Allstate Life
Global Funding Trust, any Agent, the Global Funding Trust Beneficial Owner, the
Delaware Trustee, the Funding Note Indenture Trustee or any of their affiliates.
Global Funding's obligations under the Funding Note will be secured by all of
Global Funding's rights and title in one or more Funding Agreement(s) issued by
the Funding Agreement Provider and other rights and assets included in the
applicable Funding Note Collateral. The Holder or Holders of the Funding Note
have no direct contractual rights against the Funding Agreement Provider under
the Funding Agreement(s). Under the terms of each Funding Agreement, recourse
rights to the Funding Agreement Provider will belong to Global Funding, its
successors and permitted assignees. Global Funding has pledged and collaterally
assigned each Funding Agreement to the Funding Note Indenture Trustee and has
granted the Security Interest in the Funding Note Collateral to the Funding Note
Indenture Trustee for the benefit of the Secured Parties. Recourse to the
Funding Agreement Provider under each Funding Agreement will be enforceable only
by the Funding Note Indenture Trustee on behalf of the Secured Parties.

     SECTION 8. EVENTS OF DEFAULT. If one or more Events of Default, as defined
in the Funding Note Indenture, shall have occurred and be continuing with
respect to the Funding Note, then, and in every such event, unless the principal
of the Funding Note shall have already become due and payable, the entire
principal and premium (if any) of the Funding Note, any interest accrued
thereon, and any Additional Amounts due and owing and any other amounts payable
with respect thereto, may be declared to be, and upon any such declaration the
same shall become immediately, due and payable; provided that, with respect to
certain Events of Default, without any notice to Global Funding or any other act
by the Funding Note Indenture

                                      A-19
<Page>

Trustee or any Holder of the Funding Note, the entire principal and premium (if
any) of the Funding Note, any interest accrued thereon, and any Additional
Amounts due and owing, and any other amounts payable with respect thereto, shall
become immediately due and payable without presentment, demand, protest or other
notice of any kind. If the Funding Note is a Discount Note, the amount of
principal of the Funding Note that becomes due and payable upon such
acceleration shall be equal to the amount calculated as set forth in Section 3
hereof.

     SECTION 9. WITHHOLDING; ADDITIONAL AMOUNTS. All amounts due in respect of
the Funding Note will be made without withholding or deduction for or on account
of any present or future taxes, duties, levies, assessments or other
governmental charges of whatever nature imposed or levied by or on behalf of any
governmental authority in the United States having the power to tax payments on
the Funding Note unless the withholding or deduction is required by law. Unless
otherwise specified on the face hereof, Global Funding will not pay any
Additional Amounts to the Holders of the Funding Note in the event that any
withholding or deduction is so required by law, regulation or official
interpretation thereof, and the imposition of a requirement to make any such
withholding or deduction will not give rise to any independent right or
obligation to redeem or repay the Funding Note and shall not constitute an Event
of Default.

     SECTION 10. LISTING. Unless otherwise specified on the face hereof, the
Funding Note will not be listed on any securities exchange.

     SECTION 11. NO RECOURSE. Notwithstanding anything to the contrary contained
in the Funding Note Indenture, or the Funding Note Certificate or Supplemental
Funding Note Indenture, none of the Funding Agreement Provider, its officers,
directors, affiliates, employees or agents, or any of the Delaware Trustee, the
Funding Note Indenture Trustee or the Global Funding Trust Beneficial Owner, or
any of their officers, directors, affiliates, employees or agents (the
"Non-recourse Parties") will be personally liable for the payment of any
principal, interest or any other sums at any time owing under the terms of the
Funding Note. If any Event of Default shall occur with respect to the Funding
Note, the right of the Holders of the Funding Note and the Funding Note
Indenture Trustee on behalf of such Holders in connection with a claim on the
Funding Note shall be limited solely to a proceeding against the Funding Note
Collateral. Neither the Holders nor the Funding Note Indenture Trustee on behalf
of the Holders will have the right to proceed against the Non-recourse Parties
to enforce the Funding Note (except that to the extent they exercise their
rights, if any, to seize the relevant Funding Agreement, they may enforce the
relevant Funding Agreement against the Funding Agreement Provider) or for any
deficiency judgment remaining after foreclosure of any property included in the
Funding Note Collateral.

     SECTION 12. GOVERNING LAW. Pursuant to Section 5-1401 of the General
Obligations Law of the State of New York, the Funding Note shall be governed by,
and construed in accordance with, the laws of the State of New York.

                                      A-20
<Page>

                                 ASSIGNMENT FORM
     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto Please Insert Social Security or

Other Identifying Number of Assignee

____________________________________________

________________________________________________________________________________
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

________________________________________________________________________________

________________________________________________________________________________
the within Security of ALLSTATE LIFE GLOBAL FUNDING and does hereby irrevocably
constitute and appoint __________________________________________________
attorney to transfer said Security on the books of the Issuer, with full power
of substitution in the premises.

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

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

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

                                      A-21<Page>

                                                                    EXHIBIT 10.3

                              FORM OF SECURITY FOR
       FUNDING NOTE RELATED TO SECURED MEDIUM TERM NOTES ISSUED UNDER THE
                        SECURED MEDIUM TERM NOTES PROGRAM

                               [FACE OF SECURITY]

                                                       CUSIP No.:

                          ALLSTATE LIFE GLOBAL FUNDING

                                  FUNDING NOTE

<Table>
<S>                                                  <C>
Title of Funding Note:                               Stated Maturity Date:
Trust:                                               Settlement Date and Time:
Principal Amount: $_____________                     Securities Exchange Listing: / / Yes / / No.  If yes,
     (or principal amount of foreign or composite         indicate name(s) of Securities Exchange(s):
     currency)                                            __________________________.
Original Issue Date:                                 Floating Rate Note: / / Yes / / No.  If yes,
Issue Price:                                              Regular Floating Rate Notes: / /
Interest Rate or Formula:                                 Inverse Floating Rate Notes: / /
Fixed Rate Note: / / Yes / / No.  If yes,                 Floating Rate/Fixed Rate Notes: / /
     Interest Rate:                                       Interest Rate:
     Interest Payment Dates:                              Interest Rate Basis(es):
     Day Count Convention:                                       LIBOR / /
     Additional/Other Terms:                                          / / LIBOR Reuters Page:
Amortizing Note: / / Yes / / No.  If yes,                             / / LIBOR Telerate Page:
     Amortization schedule or formula:                                LIBOR Currency:
     Additional/Other Terms:                                     Constant Maturity Treasury Rate / /
Discount Note: / / Yes / / No.  If yes,                               Designated CMT Telerate Page:
     Total Amount of Discount:                                             If Telerate Page 7052:
     Initial Accrual Period of Discount:                                   / / Weekly Average
     Interest Payment Dates:                                               / / Monthly Average
     Additional/Other Terms:

Redemption Provisions: / / Yes  / / No.  If yes,                      Designated CMT Maturity Index:
     Initial Redemption Date:                                    CD Rate / /
     Initial Redemption Percentage:                              Commercial Paper Rate / /
     Annual Redemption Percentage Reduction,                     Federal Funds Rate / /
          if any:                                                Prime Rate / /
     Additional/Other Terms:                                     Treasury Rate / /
Repayment Provisions: / / Yes  / / No.  If yes,                  Eleventh District Cost of Funds Rate /
     Optional Repayment Date(s):                                 EURIBOR Rate / /
     Optional Repayment Price:                                   Other / /  See attached.
     Additional/Other Terms:                              Index Maturity:
</Table>

<Page>

<Table>
<S>                                                       <C>
Regular Interest Record Date(s):
Sinking Fund:                                                    Spread and/or Spread Multiplier, if any:
Specified Currency:                                              Initial Interest Rate, if any:
Exchange Rate Agent:                                             Initial Interest Reset Date:
Funding Note Calculation Agent:                                  Interest Reset Dates:
Authorized Denominations:                                        Interest Determination Date(s):
Funding Note Collateral: Allstate Life Insurance                 Interest Payment Dates:
     Company Funding Agreement No(s). [   ], all                 Maximum Interest Rate, if any:
     proceeds of such Funding Agreement(s), all                  Minimum Interest Rate, if any:
     books and records pertaining to such Funding                Fixed Rate Commencement Date, if any:
     Agreement(s) and all rights of Global Funding               Fixed Interest Rate, if any:
     pertaining to the foregoing.                                Day Count Convention:
Additional Amounts to be Paid: / / Yes  / / No            Additional/Other Terms:
Additional/Other Terms:
</Table>

     This note certificate (the "Funding Note Certificate") represents a duly
authorized funding note (the "Funding Note") of Allstate Life Global Funding, a
statutory trust organized under the laws of the State of Delaware ("Global
Funding"). The Funding Note is being issued in connection with the issuance and
sale by the trust specified above (the "Trust") of the trust notes identified on
Annex A to that certain series instrument to which Global Funding and the Trust
are parties (the "Series Instrument") (the "Trust Notes"). The Funding Note is
being issued under the Funding Note Indenture, dated as of the date hereof (as
amended or supplemented from time to time, the "Indenture") between Global
Funding and J.P. Morgan Trust Company, National Association, as funding note
indenture trustee (including any successor, the "Funding Note Indenture
Trustee"). Capitalized terms used herein and not otherwise defined shall have
the respective meanings ascribed in the Standard Funding Note Indenture Terms,
dated as of [    ] (as amended or supplemented from time to time, the "Standard
Funding Note Indenture Terms").

     Subject to the immediately following paragraph, Global Funding, for value
received, hereby promises to pay to the Holder or Holders of the Funding Note on
the Maturity Date (as defined below) (or on the date of redemption or repayment
by Global Funding) the principal amount of the Funding Note and, if so specified
above, to pay interest from time to time on the Funding Note from the Original
Issue Date specified above (the "Original Issue Date") or from the most recent
Interest Payment Date to which interest has been paid or duly provided for at
the rate per annum determined in accordance with the provisions on the reverse
hereof and as specified above, until the principal of the Funding Note is paid
or made available for payment and to pay such other amounts due and owing with
respect to the Funding Note.

     This Funding Note Certificate shall be surrendered for cancellation by or
on behalf of the Trust, and shall be cancelled by the Funding Note Indenture
Trustee, immediately upon the assignment by Global Funding to, or as directed
by, the Trust of each funding agreement identified on Annex A to the Series
Instrument (each, a "Funding Agreement") in accordance with the terms of the
Funding Note and the Coordination Agreement, and such cancellation shall operate
as a redemption of the Funding Note.

     On any exchange or purchase and cancellation of the Funding Note, details
of such exchange or purchase and cancellation shall be entered in the records of
Global Funding. Upon

                                        2
<Page>

any such exchange or purchase and cancellation, the principal amount of the
Funding Note shall be charged by the principal amount so exchanged or purchased
and cancelled, as provided in the Standard Funding Note Indenture Terms.

     Unless otherwise set forth above, if the Funding Note is subject to an
Annual Redemption Percentage Reduction as specified above, the Redemption Price
of the portion of the Funding Note represented by this Funding Note Certificate
shall initially be the Initial Redemption Percentage of the principal amount of
the portion of the Funding Note represented by this Funding Note Certificate on
the Initial Redemption Date and shall decline at each anniversary of the Initial
Redemption Date (each such date, a "Redemption Date") by the Annual Redemption
Percentage Reduction of such principal amount until the Redemption Price is 100%
of such principal amount.

     The Funding Note will mature on the earlier of the Stated Maturity Date and
the Maturity Date (as defined in the Trust Notes) of the Trust Notes (the "Trust
Notes Maturity Date"), unless its principal (or, any installment of its
principal) becomes due and payable prior to any such date, whether, as
applicable, by the declaration of acceleration of maturity, notice of redemption
at the option of Global Funding, notice of the Holder's option to elect
repayment or otherwise (the Stated Maturity Date, the Trust Notes Maturity Date
or any date prior to any such date on which the Funding Note becomes due and
payable, as the case may be, are referred to as the "Maturity Date" with respect
to principal of the Funding Note repayable on such date).

     Unless otherwise provided above and except as provided in the following
paragraph, Global Funding will pay interest on each Interest Payment Date
specified above, commencing with the first Interest Payment Date next succeeding
the Original Issue Date, and on the Maturity Date; PROVIDED that any payment of
principal, premium, if any, interest or other amounts to be made on any Interest
Payment Date or on a Maturity Date that is not a Business Day shall be made on
the next succeeding Business Day, PROVIDED, HOWEVER, with respect to an Interest
Payment Date other than the Maturity Date, if the Funding Note is a LIBOR Note
(as defined in Section 3 on the reverse hereof) and that next succeeding
Business Day falls in the next succeeding calendar month, such payment shall be
made on the immediately preceding Business Day.

     Unless otherwise specified above, the interest payable on each Interest
Payment Date or on the Maturity Date will be the amount equal to the interest
accrued from and including the immediately preceding Interest Payment Date in
respect of which interest has been paid or from and including the date of issue,
if no interest has been paid, to but excluding the applicable Interest Payment
Date or the Maturity Date, as the case may be (each, an "Interest Period").

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

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

                                        3
<Page>

     The Funding Note or the portion thereof represented by this Funding Note
Certificate shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been executed by the Funding
Note Indenture Trustee pursuant to the Funding Note Indenture.

                                        4
<Page>

     IN WITNESS WHEREOF, Global Funding has caused this instrument to be duly
executed on its behalf.

Dated: Original Issue Date              ALLSTATE LIFE GLOBAL FUNDING,
                                        as Issuer

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

                          CERTIFICATE OF AUTHENTICATION

     This Funding Note Certificate is one of the Funding Note Certificates
representing the Funding Note described in the within-mentioned Funding Note
Indenture and is being issued in accordance with Section 2.5(f) of the Funding
Note Indenture.

Dated: Original Issue Date              J.P. MORGAN TRUST COMPANY, NATIONAL
                                               ASSOCIATION,
                                        as Funding Note Indenture Trustee

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

                                        5
<Page>

                        [REVERSE OF DEFINITIVE SECURITY]

     SECTION 1. GENERAL. This Funding Note is being issued pursuant to the
Funding Note Indenture in connection with the issuance and sale by the Trust of
the Trust Notes. The Funding Note shall be surrendered for cancellation by or on
behalf of the Trust, and shall be cancelled by the Funding Note Indenture
Trustee, immediately upon the assignment by Global Funding to, or as directed
by, the Trust of each Funding Agreement, and such cancellation shall operate as
a redemption of the Funding Note.

     SECTION 2. CURRENCY. The Funding Note is denominated in, and payments of
principal of, premium, if any, and interest on, if any, and other amounts in
respect of, the Funding Note will be in the Specified Currency designated on the
face hereof. If the specified currency of the Funding Note is other than U.S.
Dollars (or "Foreign Currency Note"), any amounts so payable by Global Funding
in the Specified Currency will be converted by the exchange rate agent
designated on the face hereof (the "Exchange Rate Agent") into United States
dollars for payment to the registered holders hereof unless otherwise specified
on the face hereof or a registered holder elects, in the manner described below,
to receive payments in the Specified Currency.

     If the Specified Currency for a Foreign Currency Note is not available for
any required payment of principal, premium, if any, and/or interest, if any, due
to the imposition of exchange controls or other circumstances beyond the control
of Global Funding, Global Funding will be entitled to satisfy the obligations to
the registered holders of the Foreign Currency Note by making payments in United
States dollars based on the highest bid quotation in The City of New York
received by the Exchange Rate Agent at approximately 11:00 A.M., New York City
time, on the second Business Day preceding the applicable payment date from
three recognized foreign exchange dealers (one of whom may be the Exchange Rate
Agent) selected by the Exchange Rate Agent and approved by Global Funding for
the purchase by the quoting dealer of the Specified Currency for United States
dollars for settlement on that payment date in the aggregate amount of the
Specified Currency payable to all registered holders of the Foreign Currency
Note scheduled to receive United States dollar payments and at which the
applicable dealer commits to execute a contract. All currency exchange costs
will be borne by the relevant registered holders of the Foreign Currency Note by
deductions from any payments. If three bid quotations are not available,
payments will be made in the Specified Currency.

     Registered holders of a Foreign Currency Note may elect to receive all or a
specified portion of any payment of principal, premium, if any, and/or interest,
if any, in the Specified Currency by submitting a written request to the Funding
Note Indenture Trustee at its corporate trust office in The City of New York on
or prior to the applicable Regular Interest Record Date or at least fifteen
calendar days prior to the Maturity Date, as the case may be. This written
request may be mailed or hand delivered or sent by cable, telex or other form of
facsimile transmission. This election will remain in effect until revoked by
written notice delivered to the Funding Note Indenture Trustee on or prior to a
Regular Interest Record Date or at least fifteen calendar days prior to the
Maturity Date, as the case may be. Registered holders of a Foreign Currency Note
to be held in the name of a broker or nominee should contact their broker or

                                        6
<Page>

nominee to determine whether and how an election to receive payments in the
Specified Currency may be made.

     Unless otherwise specified on the face hereof, if the Specified Currency is
other than United States dollars, if the Holder hereof elects to receive
payments of principal, premium, if any, and/or interest, if any, in the
Specified Currency, the Holder must notify the Funding Note Indenture Trustee of
that election on or prior to the fifth Business Day after the applicable Regular
Interest Record Date or at least ten calendar days prior to the Maturity Date,
as the case may be. If complete instructions are received by the Funding Note
Indenture Trustee on or prior to such dates, then the Holder will receive
payments in the Specified Currency.

     Unless otherwise specified on the face hereof, if payment in the Specified
Currency hereon is not available to Global Funding for any required payment of
principal, premium, if any, and/or interest, if any, due to the imposition of
exchange controls or other circumstances beyond Global Funding's control, then
Global Funding will be entitled to satisfy its obligations by making payments in
United States dollars on the basis of the Market Exchange Rate, computed by the
Exchange Rate Agent as described above, on the second Business Day prior to the
particular payment or, if the Market Exchange Rate is not then available, on the
basis of the most recently available Market Exchange Rate. The "Market Exchange
Rate" for a Specified Currency other than United States dollars means the noon
dollar buying rate in The City of New York for cable transfers for the Specified
Currency as certified for customs purposes (or, if not so certified, as
otherwise determined) by the Federal Reserve Bank of New York. Any payment in
respect hereof made under such circumstances in U.S. Dollars will not constitute
an Event of Default under the Funding Note Indenture.

     In the event that a member state of the European Union in whose national
currency the Funding Note is denominated becomes a participant member in the
third stage of the European economic and monetary union, Global Funding may on
or after the date of such occurrence, without the consent of any Holder hereof,
redenominate all, but not less than all, of the Principal amount of the Funding
Note represented hereby.

     All determinations referred to above made by the Exchange Rate Agent shall
be at its sole discretion and, in the absence of manifest error, shall be
conclusive for all purposes and binding on any Holder hereof.

     All currency exchange costs will be borne by the Holder hereof by deduction
from the payments made hereon.

     SECTION 3. DETERMINATION OF INTEREST RATE AND OTHER PAYMENT PROVISIONS.

     FIXED RATE NOTE. If the Funding Note is designated on the face hereof as a
"Fixed Rate Note," the Funding Note will bear interest from the Original Issue
Date until the Maturity Date. Unless otherwise specified on the face hereof, the
rate of interest payable on the Funding Note will not be adjusted; unless
otherwise specified on the face hereof, interest will be payable on the Interest
Payment Dates set forth on the face hereof and at the Maturity Date. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. If any
Interest Payment Date or the Maturity Date of a Fixed Rate Note falls on a day
that is not a Business Day, any

                                        7
<Page>

payments of principal, premium, if any, and/or interest or other amounts
required to be made, may be made on the next succeeding Business Day, and no
additional interest will accrue in respect of the payment made on that next
succeeding Business Day.

     DISCOUNT NOTE. If the Funding Note is designated on the face hereof as a
"Discount Note" (as defined below), payments in respect of the Funding Note
shall be made as set forth on the face hereof. In the event a Discount Note is
redeemed, repaid or accelerated, the amount payable to the Holder of the
Discount Note on the Maturity Date will be equal to the sum of (1) the Issue
Price (increased by any accruals of discount) and, in the event of any
redemption of the Discount Note, if applicable, multiplied by the Initial
Redemption Percentage (as adjusted by the Annual Redemption Percentage
Reduction, if applicable); and (2) any unpaid interest accrued on the Discount
Note to the date of redemption, repayment or acceleration of maturity, as
applicable. For purposes of determining the amount of discount that has accrued
as of any date on which a redemption, repayment or acceleration of maturity of
the Funding Note occurs for a Discount Note, the discount will be accrued using
a constant yield method. The constant yield will be calculated using a 30-day
month, 360-day year convention, a compounding period that, except for the
Initial Period (as defined below), corresponds to the shortest period between
Interest Payment Dates for a Discount Note (with ratable accruals within a
compounding period), a coupon rate equal to the initial coupon rate applicable
to a Discount Note and an assumption that the maturity of such Discount Note
will not be accelerated. If the period from the date of issue to the first
Interest Payment Date for a Discount Note (the "Initial Period") is shorter than
the compounding period for such Discount Note, a proportionate amount of the
yield for an entire compounding period will be accrued. If the Initial Period is
longer than the compounding period, then the period will be divided into a
regular compounding period and a short period with the short period being
treated as provided in the preceding sentence. The Funding Note is a "Discount
Note" if its Issue Price is less than 100% of the principal amount thereof by
more than a percentage equal to the product of 0.25% and the number of full
years to the Stated Maturity Date.

     AMORTIZING NOTE. If the Funding Note is specified on the face hereof as an
"Amortizing Note," the Funding Note shall bear interest at the rate set forth on
the face hereof, and payments of principal and interest shall be made as set
forth on the face hereof and/or in accordance with SCHEDULE I attached hereto.
Unless otherwise specified on the face hereof, interest on the Funding Note will
be computed on the basis of a 360-day year of twelve 30-day months. Payments
with respect to an Amortizing Note will be applied first to interest due and
payable on the Funding Note and then to the reduction of the unpaid principal
amount of the Funding Note.

     FLOATING RATE NOTE. If the Funding Note is specified on the face hereof as
a "Floating Rate Note," interest on the Funding Note shall accrue and be payable
in accordance with this Section 3. A Floating Rate Note may be a CD Rate Note,
CMT Rate Note, Commercial Paper Rate Note, Eleventh District Cost of Funds Rate
Note, Federal Funds Rate Note, LIBOR Note, EURIBOR Note, Prime Rate Note,
Treasury Rate Note, or as otherwise set forth on the face hereof. If the Funding
Note is designated on the face hereof as a Floating Rate Note, the face hereof
will specify whether the Funding Note is a Regular Floating Rate Note, Inverse
Floating Rate Note or Floating Rate/Fixed Rate Note. For the period from the
date of issue to, but not including, the first Interest Reset Date set forth on
the face hereof, the interest rate hereon shall

                                        8
<Page>

be the Initial Interest Rate specified on the face hereof. Thereafter, the
interest rate hereon will be reset as of and be effective as of each Interest
Reset Date.

     (A)  If any Interest Reset Date would otherwise be a day that is not a
          Business Day, such Interest Reset Date shall be postponed to the next
          day that is a Business Day; PROVIDED, HOWEVER, that if the Funding
          Note is a LIBOR Note and such Business Day is in the next succeeding
          calendar month, such Interest Reset Date shall be the Business Day
          immediately preceding such Interest Reset Date.

     (B)  Unless specified otherwise on the face hereof, Interest Reset Dates
          are as follows: (1) if the Funding Note resets daily, each Business
          Day, (2) if the Funding Note resets weekly, other than Treasury Rate
          Note, the Wednesday of each week, (3) if the Funding Note is a
          Treasury Rate Note that resets weekly, and except as provided below
          under "Treasury Rate Note," the Tuesday of each week, (4) if the
          Funding Note resets monthly, the third Wednesday of each month, unless
          the Eleventh District Cost of Funds Rate is the Interest Rate Basis
          (as defined below) applicable to the Funding Note, in which case the
          Funding Note will reset the first calendar day of the month, (5) if
          the Funding Note resets quarterly, the third Wednesday of March, June,
          September and December of each year, (6) if the Funding Note resets
          semiannually, the third Wednesday of each of the two months specified
          on the face hereof and (7) if the Funding Note resets annually, the
          third Wednesday of the month specified each year; PROVIDED, HOWEVER,
          that with respect to a Floating Rate/ Fixed Rate Note, the rate of
          interest thereon will not reset after the particular Fixed Rate
          Commencement Date specified on the face hereof (the "Fixed Rate
          Commencement Date").

     (C)  Accrued interest is calculated by multiplying the principal amount of
          the Floating Rate Note by an accrued interest factor. The accrued
          interest factor is computed by adding the interest factor calculated
          for each day in the particular Interest Period. The interest factor
          for each day will be computed by dividing the interest rate applicable
          to such day by 360, in the case of a Floating Rate Note as to which
          the CD Rate, the Commercial Paper Rate, the Eleventh District Cost of
          Funds Rate, the Federal Funds Rate, LIBOR or the Prime Rate is an
          applicable Interest Rate Basis, or by the actual number of days in the
          year, in the case of a Floating Rate Note as to which the CMT Rate or
          the Treasury Rate is an applicable Interest Rate Basis. The interest
          factor for a Floating Rate Note as to which the interest rate is
          calculated with reference to two or more Interest Rate Bases will be
          calculated in each period in the same manner as if only the applicable
          Interest Rate Basis specified on the face hereof applied. The interest
          rate shall be set forth on the face hereof. For purposes of making the
          foregoing calculation, the interest rate in effect on any Interest
          Reset Date will be the applicable rate as reset on that date. Unless
          otherwise specified on the face hereof, the interest rate that is
          effective on the applicable Interest Reset Date will be determined on
          the applicable Interest Determination Date and calculated on the
          applicable Funding Note Calculation Date (as defined below). "Funding
          Note Calculation Date" means the date by which the Funding Note
          Calculation Agent designated on the face hereof, is to calculate the
          interest rate which will be the earlier of (1) the

                                        9
<Page>

          tenth calendar day after the particular Interest Determination Date
          or, if such day is not a Business Day, the next succeeding Business
          Day; or (2) the Business Day immediately preceding the applicable
          Interest Payment Date or the Maturity Date, as the case may be.

     (D)  Unless otherwise specified on the face hereof, all percentages
          resulting from any calculation on a Floating Rate Note will be rounded
          to the nearest one hundred-thousandth of a percentage point, with five
          one-millionths of a percentage point rounded upwards. All dollar
          amounts used in or resulting from any calculation on a Floating Rate
          Note will be rounded, in the case of United States dollars, to the
          nearest cent or, in the case of a foreign currency, to the nearest
          unit (with one-half cent or unit being rounded upwards).

     Unless otherwise specified on the face hereof and except as provided below,
interest will be payable as follows: (1) if the Interest Reset Date for the
Funding Note is daily, weekly or monthly, interest will be payable on the third
Wednesday of each month or on the third Wednesday of March, June, September and
December of each year, as specified on the face hereof, (2) if the Interest
Reset Date for the Funding Note is quarterly, interest will be payable on the
third Wednesday of March, June, September, and December of each year, (3) if the
Interest Reset Date for the Funding Note is semiannually, interest will be
payable on the third Wednesday of each of two months specified on the face
hereof of each year, (4) if the Interest Reset Date for the Funding Note is
annually, interest will be payable on the third Wednesday of the month specified
on the face hereof of each year. In each of these cases, interest will also be
payable on the Maturity Date.

     If specified on the face hereof, the Funding Note may have either or both
of a Maximum Interest Rate or Minimum Interest Rate. If a Maximum Interest Rate
is so designated, the interest rate that may accrue during any Interest Period
for a Floating Rate Note cannot ever exceed such Maximum Interest Rate and in
the event that the interest rate on any Interest Reset Date would exceed such
Maximum Interest Rate (as if no Maximum Interest Rate were in effect) then the
interest rate on such Interest Reset Date shall be the Maximum Interest Rate. If
a Minimum Interest Rate is so designated, the interest rate that may accrue
during any Interest Period for a Floating Rate Note cannot ever be less than
such Minimum Interest Rate and in the event that the interest rate on any
Interest Reset Date would be less than such Minimum Interest Rate (as if no
Minimum Interest Rate were in effect) then the interest rate on such Interest
Reset Date shall be the Minimum Interest Rate. Notwithstanding anything to the
contrary contained herein, if the Funding Note is designated on the face hereof
as a Floating Rate Note, the interest rate on the Funding Note shall not exceed
the maximum interest rate permitted by applicable law.

     All determinations of interest by the Funding Note Calculation Agent
designated on the face hereof will, in the absence of manifest error, be
conclusive for all purposes and binding on the Holder of the Funding Note and
neither the Funding Note Indenture Trustee nor the Funding Note Calculation
Agent shall have any liability to the Holder of the Funding Note in respect of
any determination, calculation, quote or rate made or provided by the Funding
Note Calculation Agent. Upon request of the Holder of the Funding Note, the
Funding Note Calculation Agent will provide the interest rate then in effect
and, if determined, the interest rate that will become

                                       10
<Page>

effective on the next Interest Reset Date with respect to the Funding Note. If
the Funding Note Calculation Agent is incapable or unwilling to act as such or
if the Funding Note Calculation Agent fails duly to establish the interest rate
for any interest accrual period or to calculate the interest amount or any other
requirements, Global Funding will appoint a successor to act as such in its
place. The Funding Note Calculation Agent may not resign its duties until a
successor has been appointed and such successor has accepted its appointment.

     Subject to applicable provisions of law and except as specified herein, on
each Interest Reset Date, the rate of interest on the Funding Note on and after
the first Interest Reset Date shall be the interest rate determined in
accordance with the provisions of the heading below which has been designated as
the Interest Rate Basis on the face hereof (the "Interest Rate Basis"), the base
rate, plus or minus the Spread, if any, specified on the face hereof and/or
multiplied by the Spread Multiplier, if any, specified on the face hereof.

     (A)  CD RATE NOTE. If the Interest Rate Basis is the CD Rate, the Funding
          Note shall be deemed to be a "CD Rate Note". A CD Rate Note will bear
          interest at the interest rate calculated with reference to the CD Rate
          and the Spread or Spread Multiplier, if any. The Funding Note
          Calculation Agent will determine the CD Rate on each Interest
          Determination Date. The Interest Determination Date is the second
          Business Day immediately preceding the related Interest Reset Date.
          "CD Rate" means the rate on the particular Interest Determination Date
          for negotiable United States dollar certificates of deposit having the
          Index Maturity specified on the face hereof as published in H.15(519)
          (as defined below) under the caption "CDs (secondary market)", or, if
          not so published by 3:00 P.M., New York City time, on the related
          Funding Note Calculation Date, the rate on the particular Interest
          Determination Date for negotiable United States dollar certificates of
          the particular Index Maturity as published in the H.15 Daily Update
          (as defined below) or other recognized electronic source used for the
          purpose of displaying the applicable rate under the heading "CDs
          (secondary market)". If such rate is not yet published in either
          H.15(519) or the H.15 Daily Update by 3:00 P.M., New York City time,
          on the related Funding Note Calculation Date, then the CD Rate will be
          the rate on the particular Interest Determination Date calculated by
          the Funding Note Calculation Agent as the arithmetic mean of the
          secondary market offered rates as of 10:00 A.M., New York City time on
          that Interest Determination Date of three leading nonbank dealers in
          negotiable United States dollar certificates of deposit in The City of
          New York (which may include the Agents or their affiliates) selected
          by the Funding Note Calculation Agent for negotiable United States
          dollar certificates of deposit of major United States money market
          banks for negotiable United States certificates of deposit with a
          remaining maturity closest to the particular Index Maturity in an
          amount that is representative for a single transaction in that market
          at that time, or, if the dealers so selected by the Funding Note
          Calculation Agent are not quoting as described in the preceding
          sentence, the CD Rate in effect on the particular Interest
          Determination Date. "H.15(519)" means the weekly statistical release
          designated as H.15(519), or any successor publication, published by
          the Board of Governors of the Federal Reserve System; and "H.15 Daily
          Update" means the daily update of H.15(519), available through the
          Board of Governors of the Federal Reserve

                                       11
<Page>

          System at http://www.federalreserve.gov/releases/H15/update, or any
          successor site or publication.

     (B)  CMT RATE NOTE. If the Interest Basis is the CMT Rate, the Funding Note
          shall be deemed to be a "CMT Rate Note". A CMT Rate Note will bear
          interest at the interest rate calculated with reference to the CMT
          Rate and the Spread or Spread Multiplier, if any. The Funding Note
          Calculation Agent will determine the CMT Rate on each applicable
          Interest Determination Date. The applicable Interest Determination
          Date is the second Business Day prior to the Interest Reset Date. "CMT
          Rate" means (1) if CMT Moneyline Telerate Page 7051 is specified on
          the face hereof: (a) the percentage equal to the yield for United
          States Treasury securities at "constant maturity" having the Index
          Maturity specified on the face hereof as published in H.15(519) under
          the caption "Treasury Constant Maturities", as the yield is displayed
          on Moneyline Telerate (or any successor service) on page 7051 (or any
          other page as may replace the specified page on that service)
          ("Moneyline Telerate Page 7051"), for the particular Interest
          Determination Date, or (b) if the rate referred to in clause (a) does
          not so appear on Moneyline Telerate Page 7051, the percentage equal to
          the yield for United States Treasury securities at "constant maturity"
          having the particular Index Maturity and for the particular Interest
          Determination Date as published in H.15(519) under the caption
          "Treasury Constant Maturities", or (c) if the rate referred to in
          clause (b) does not so appear in H.15(519), the rate on the particular
          Interest Determination Date for the period of the particular Index
          Maturity as may then be published by either the Federal Reserve System
          Board of Governors or the United States Department of the Treasury
          that the Funding Note Calculation Agent determines to be comparable to
          the rate which would otherwise have been published in H.15(519), or
          (d) if the rate referred to in clause (c) is not so published, the
          rate on the particular Interest Determination Date calculated by the
          Funding Note Calculation Agent as

                                       12
<Page>

          a yield to maturity based on the arithmetic mean of the secondary
          market bid prices at approximately 3:30 P.M., New York City time, on
          that Interest Determination Date of three leading primary United
          States government securities dealers in The City of New York (which
          may include the Agents or their affiliates) (each, a "Reference
          Dealer"), selected by the Funding Note Calculation Agent from five
          Reference Dealers selected by the Funding Note Calculation Agent and
          eliminating the highest quotation, or, in the event of equality, one
          of the highest, and the lowest quotation or, in the event of equality,
          one of the lowest, for United States Treasury securities with an
          original maturity equal to the particular Index Maturity, a remaining
          term to maturity no more than one year shorter than that Index
          Maturity and in a principal amount that is representative for a single
          transaction in the securities in that market at that time, or (e) if
          fewer than five but more than two of the prices referred to in clause
          (d) are provided as requested, the rate on the particular Interest
          Determination Date calculated by the Funding Note Calculation Agent
          based on the arithmetic mean of the bid prices obtained and neither
          the highest nor the lowest of the quotations shall be eliminated, or
          (f) if fewer than three prices referred to in clause (d) are provided
          as requested, the rate on the particular Interest Determination Date
          calculated by the Funding Note Calculation Agent as a yield to
          maturity based on the arithmetic mean of the secondary market bid
          prices as of approximately 3:30 P.M., New York City time, on that
          Interest Determination Date of three Reference Dealers selected by the
          Funding Note Calculation Agent from five Reference Dealers selected by
          the Funding Note Calculation Agent and eliminating the highest
          quotation or, in the event of equality, one of the highest and the
          lowest quotation or, in the event of equality, one of the lowest, for
          United States Treasury securities with an original maturity greater
          than the particular Index Maturity, a remaining term to maturity
          closest to that Index Maturity and in a principal amount that is
          representative for a single transaction in the securities in that
          market at that time, or (g) if fewer than five but more than two
          prices referred to in clause (f) are provided as requested, the rate
          on the particular Interest Determination Date calculated by the
          Funding Note Calculation Agent based on the arithmetic mean of the bid
          prices obtained and neither the highest nor the lowest of the
          quotations will be eliminated, or (h) if fewer than three prices
          referred to in clause (f) are provided as requested, the CMT Rate in
          effect on the particular Interest Determination Date; (2) if CMT
          Moneyline Telerate Page 7052 is specified on the face hereof (a) the
          percentage equal to the one-week or one-month, as specified on the
          face hereof, average yield for United States Treasury securities at
          "constant maturity" having the Index Maturity specified on the face
          hereof as published in H.15(519) opposite the caption "Treasury
          Constant Maturities", as the yield is displayed on Moneyline Telerate
          (or any successor service) (on page 7052 or any other page as may
          replace the specified page on that service) ("Moneyline Telerate Page
          7052"), for the week or month, as applicable, ended immediately
          preceding the week or month, as applicable, in which the particular
          Interest Determination Date falls, or (b) if the rate referred to in
          clause (a) does not so appear on Moneyline Telerate Page 7052, the
          percentage equal to the one-week or one-month, as specified on the
          face hereof, average yield for United States Treasury securities at
          "constant maturity" having the particular Index Maturity and for the
          week or month, as applicable, preceding the particular Interest
          Determination Date as published in H.15(519) opposite the caption
          "Treasury Constant Maturities", or (c) if the rate referred to in
          clause (b) does not so appear in H.15(519), the one-week or one-month,
          as specified on the face hereof, average yield for United States
          Treasury securities at "constant maturity" having the particular Index
          Maturity as otherwise announced by the Federal Reserve Bank of New
          York for the week or month, as applicable, ended immediately preceding
          the week or month, as applicable, in which the particular Interest
          Determination Date falls, or (d) if the rate referred to in clause (c)
          is not so published, the rate on the particular Interest Determination
          Date calculated by the Funding Note Calculation Agent as a yield to
          maturity based on the arithmetic mean of the secondary market bid
          prices at approximately 3:30 P.M., New York City time, on that
          Interest Determination Date of three Reference Dealers selected by the
          Funding Note Calculation Agent from five Reference Dealers selected by
          the Funding Note Calculation Agent and eliminating the highest
          quotation, or, in the event of equality, one of the highest, and the
          lowest quotation or, in the event of equality, one of the lowest, for
          United States Treasury securities with an original maturity equal to
          the particular Index

                                       13
<Page>

          Maturity, a remaining term to maturity no more than one year shorter
          than that Index Maturity and in a principal amount that is
          representative for a single transaction in the securities in that
          market at that time, or (e) if fewer than five but more than two of
          the prices referred to in clause (d) are provided as requested, the
          rate on the particular Interest Determination Date calculated by the
          Funding Note Calculation Agent based on the arithmetic mean of the bid
          prices obtained and neither the highest nor the lowest of the
          quotations shall be eliminated, or (f) if fewer than three prices
          referred to in clause (d) are provided as requested, the rate on the
          particular Interest Determination Date calculated by the Funding Note
          Calculation Agent as a yield to maturity based on the arithmetic mean
          of the secondary market bid prices as of approximately 3:30 P.M., New
          York City time, on that Interest Determination Date of three Reference
          Dealers selected by the Funding Note Calculation Agent from five
          Reference Dealers selected by the Funding Note Calculation Agent and
          eliminating the highest quotation or, in the event of equality, one of
          the highest and the lowest quotation or, in the event of equality, one
          of the lowest, for United States Treasury securities with an original
          maturity greater than the particular Index Maturity, a remaining term
          to maturity closest to that Index Maturity and in a principal amount
          that is representative for a single transaction in the securities in
          that market at the time, or (g) if fewer than five but more than two
          prices referred to in clause (f) are provided as requested, the rate
          on the particular Interest Determination Date calculated by the
          Funding Note Calculation Agent based on the arithmetic mean of the bid
          prices obtained and neither the highest nor the lowest of the
          quotations will be eliminated, or (h) if fewer than three prices
          referred to in clause (f) are provided as requested, the CMT Rate in
          effect on that Interest Determination Date.

               If two United States Treasury securities with an original
               maturity greater than the Index Maturity specified on the face
               hereof have remaining terms to maturity equally close to the
               particular Index Maturity, the quotes for the United States
               Treasury security with the shorter original remaining term to
               maturity will be used.

     (C)  COMMERCIAL PAPER RATE NOTE. If the Interest Rate Basis is the
          Commercial Paper Rate, the Funding Note shall be deemed to be a
          "Commercial Paper Rate Note". A Commercial Paper Rate Note will bear
          interest for each Interest Reset Date at the interest rate calculated
          with reference to the Commercial Paper Rate and the Spread or Spread
          Multiplier, if any. The Funding Note Calculation Agent will determine
          the Commercial Paper Rate on each applicable Interest Determination
          Date. The Interest Determination Date is the Business Day immediately
          preceding the related Interest Reset Date. "Commercial Paper Rate"
          means the Money Market Yield (calculated as described below) on the
          Interest Determination Date of the rate for commercial paper having
          the applicable Index Maturity as such rate is published in H.15(519)
          under the heading "Commercial Paper -- Nonfinancial". If such rate is
          not published by 3:00 P.M., New York City time, on the Funding Note
          Calculation Date pertaining to such Interest Determination Date, then
          the Commercial Paper Rate shall be the Money Market Yield on the
          particular Interest Determination Date of the rate for commercial

                                       14
<Page>

          paper having the particular Index Maturity as published on H.15 Daily
          Update or such other recognized electronic source used for the
          purposes of displaying the applicable rate, under the caption
          "Commercial Paper -- Nonfinancial", or if such rate is not published
          by 3:00 P.M., New York City time, on the Funding Note Calculation
          Date, then the Commercial Paper Rate as calculated by the Funding Note
          Calculation Agent shall be the Money Market Yield of the arithmetic
          mean of the offered rates at approximately 11:00 A.M., New York City
          time, on that Interest Determination Date of three leading dealers of
          United States dollar commercial paper in The City of New York (which
          may include the Agents or their affiliates) selected by the Funding
          Note Calculation Agent for commercial paper having the particular
          Index Maturity placed for industrial issuers whose bond rating is
          "Aa", or the equivalent, from a nationally recognized statistical
          rating organization; PROVIDED, HOWEVER, that if the dealers selected
          by the Funding Note Calculation Agent are not quoting offered rates as
          mentioned above, the Commercial Paper Rate in effect on the particular
          Interest Determination Date.

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

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

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

     (D)  ELEVENTH DISTRICT COST OF FUNDS RATE NOTE. If the Interest Basis is
          the Eleventh District Costs of Funds Rate, the Funding Note shall be
          deemed to be a "Eleventh District Cost of Funds Rate Note". An
          Eleventh District Cost of Funds Note will bear interest at the
          interest rate calculated with reference to the Eleventh District Cost
          of Funds Rate and the Spread or Spread Multiplier, if any. The Funding
          Note Calculation Agent will determine the Eleventh District Cost of
          Rate on each applicable Interest Determination Date. The applicable
          Interest Determination Date is the last working day of the month
          immediately preceding the related Interest Reset Date on which the
          Federal Home Loan Bank of San Francisco publishes the Eleventh
          District Index. The "Eleventh District Cost of Funds Rate" means (1)
          the rate equal to the monthly weighted average cost of funds for the
          calendar month immediately preceding the month in which the particular
          Interest Determination Date falls as set forth under the caption "11th
          District" on the display on Moneyline Telerate (or any successor
          service) on page 7058 (or any other page as may replace the specified
          page on that service) ("Moneyline Telerate Page 7058") as of 11:00
          A.M., San Francisco time, on that Interest Determination Date, or (2)
          if the rate referred to in clause (1) does not so appear on Moneyline
          Telerate Page 7058, the monthly weighted average cost of funds paid by
          member institutions of the Eleventh Federal Home Loan Bank District
          that was most recently announced (the "Eleventh District Index") by
          the Federal Home Loan Bank of San Francisco as the cost of funds for
          the calendar month immediately preceding that Interest Determination
          Date, or (3) if the Federal Home Loan Bank of San Francisco fails to
          announce the Eleventh District Index on or prior to the particular
          Interest Determination Date for the calendar month

                                       15
<Page>

          immediately preceding that Interest Determination Date, the Eleventh
          District Cost of Funds Rate in effect on the particular Interest
          Determination Date.

     (E)  FEDERAL FUNDS RATE NOTE. If the Interest Rate Basis is the Federal
          Funds Rate, the Funding Note shall be deemed to be a "Federal Funds
          Rate Note". A Federal Funds Rate Note will bear interest for each
          Interest Reset Date at the interest rate calculated with reference to
          the Federal Funds Rate and the Spread or Spread Multiplier, if any.
          The Funding Note Calculation Agent will determine the Federal Funds
          Rate on each applicable Interest Determination Date. The Interest
          Determination Date is the Business Day immediately preceding the
          related Interest Reset Date. "Federal Funds Rate" means (1) the rate
          on the particular Interest Determination Date for United States dollar
          federal funds as published in H.15(519) under the caption "Federal
          Funds (Effective)" and displayed on Moneyline Telerate (or any
          successor service) on page 120 (or any other page as may replace the
          specified page on that service) ("Moneyline Telerate Page 120"), or
          (2) if the rate referred to in clause (1) does not so appear on
          Moneyline Telerate Page 120 or is not so published by 3:00 P.M., New
          York City time, on the related Funding Note Calculation Date, the rate
          on the particular Interest Determination Date for United States dollar
          federal funds as published in H.15 Daily Update, or such other
          recognized electronic source used for the purpose of displaying the
          applicable rate, under the caption "Federal Funds (Effective)", or (3)
          if the rate referred to in clause (2) is not so published by 3:00
          P.M., New York City time, on the related Funding Note Calculation
          Date, the rate on the particular Interest Determination Date
          calculated by the Funding Note Calculation Agent as the arithmetic
          mean of the rates for the last transaction in overnight United States
          dollar federal funds arranged by three leading brokers of United
          States dollar federal funds transactions in The City of New York
          (which may include the Agents or their affiliates), selected by the
          Funding Note Calculation Agent prior to 9:00 A.M., New York City time,
          on that Interest Determination Date, or (4) if the brokers so selected
          by the Funding Note Calculation Agent are not quoting as mentioned in
          clause (3), the Federal Funds Rate in effect on the particular
          Interest Determination Date.

     (F)  LIBOR NOTE. If the Interest Rate Basis is LIBOR (as defined below),
          the Funding Note shall be deemed to be a "LIBOR Note". A LIBOR Note
          will bear interest for each Interest Period at the interest rate
          calculated with reference to LIBOR and the Spread or Spread
          Multiplier, if any. On each applicable Interest Determination Date the
          Funding Note Calculation Agent will determine LIBOR. The applicable
          Interest Determination Date is the second London Banking Day preceding
          the related Interest Reset Date.

               LIBOR means: (1) if "LIBOR Moneyline Telerate" is specified on
               the face hereof or if neither "LIBOR Reuters" nor "LIBOR
               Moneyline Telerate" is specified on the face hereof as the method
               for calculating

                                       16
<Page>

               LIBOR, the rate for deposits in the LIBOR Currency (as defined
               below) having the Index Maturity specified on the face hereof,
               commencing on the related Interest Reset Date, that appears on
               the LIBOR Page (as defined below) as of 11:00 A.M., London time,
               on the particular Interest Determination Date, or (2) if "LIBOR
               Reuters" is specified on the face hereof, the arithmetic mean of
               the offered rates, calculated by the Funding Note Calculation
               Agent, or the offered rate, if the LIBOR Page by its terms
               provides only for a single rate, for deposits in the LIBOR
               Currency having the particular Index Maturity, commencing on the
               related Interest Reset Date, that appear or appears, as the case
               may be, on the LIBOR Page as of 11:00 A.M., London time, on the
               particular Interest Determination Date, or (3) if fewer than two
               offered rates appear, or no rate appears, as the case may be, on
               the particular Interest Determination Date on the LIBOR Page as
               specified in clause (1) or (2), as applicable, the rate
               calculated by the Funding Note Calculation Agent of at least two
               offered quotations obtained by the Funding Note Calculation Agent
               after requesting the principal London offices of each of four
               major reference banks (which may include affiliates of the
               Agents), in the London interbank market to provide the Funding
               Note Calculation Agent with its offered quotation for deposits in
               the LIBOR Currency for the period of the particular Index
               Maturity, commencing on the related Interest Reset Date, to prime
               banks in the London interbank market at approximately 11:00 A.M.,
               London time, on that Interest Determination Date and in a
               principal amount that is representative for a single transaction
               in the LIBOR Currency in that market at that time, or (4) if
               fewer than two offered quotations referred to in clause (3) are
               provided as requested, the rate calculated by the Funding Note
               Calculation Agent as the arithmetic mean of the rates quoted at
               approximately 11:00 A.M., in the applicable Principal Financial
               Center, on the particular Interest Determination Date by three
               major banks (which may include affiliates of the Agents), in that
               Principal Financial Center selected by the Funding Note
               Calculation Agent for loans in the LIBOR Currency to leading
               European banks, having the particular Index Maturity and in a
               principal amount that is representative for a single transaction
               in the LIBOR Currency in that market at that time, or (5) if the
               banks so selected by the Funding Note Calculation Agent are not
               quoting as mentioned in clause (4), LIBOR in effect on the
               particular Interest Determination Date.

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

               "LIBOR Page" means either: if "LIBOR Reuters" is specified on the
               face hereof as the method for calculating LIBOR, the display on
               the Reuter Monitor Money Rates Service (or any successor service)
               on the page specified on the face hereof (or any other page as
               may replace that page on that service) for the purpose of
               displaying the London interbank rates of

                                       17
<Page>

               major banks for the LIBOR Currency; or if "LIBOR Moneyline
               Telerate" is specified on the face hereof or neither "LIBOR
               Reuters" nor "LIBOR Moneyline Telerate" is specified on the face
               hereof as the method for calculating LIBOR, the display on
               Moneyline Telerate (or any successor service) on the page
               specified on the face hereof (or any other page as may replace
               such page on such service) for the purpose of displaying the
               London interbank rates of major banks for the LIBOR Currency.

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

     (G)  EURIBOR RATE NOTE. If the Interest Rate Basis is EURIBOR (as defined
          below), the Funding Note shall be deemed to be a "EURIBOR Note". A
          EURIBOR Note will bear interest at the rates (calculated with
          references to the European inter-bank offered rate for deposits in
          Euro, or "EURIBOR", and the Spread and/or Spread Multiplier, if any)
          specified on the face hereof.

               "EURIBOR" means, with respect to any Interest Determination Date
               relating to a EURIBOR Note or if the Funding Note bears interest
               at a floating rate for which the interest rate is determined with
               reference to EURIBOR (a "EURIBOR Interest Determination Date"),
               the rate for deposits in Euros as sponsored, calculated and
               published jointly by the European Banking Federation and ACI --
               The Financial Market Association, or any company established by
               the joint sponsors for purposes of compiling and publishing those
               rates, having the Index Maturity specified on the face hereof,
               commencing on the applicable Interest Reset Date, as the rate
               appears on Moneyline Telerate, Inc., or any successor service, on
               page 248 (or any other page as may replace that specified page on
               the service) ("Moneyline Telerate Page 248") as of 11:00 A.M.,
               Brussels time, on the applicable EURIBOR Interest Determination
               Date. If such rate does not appear on Moneyline Telerate Page
               248, or is not so published by 11:00 A.M., Brussels time, on the
               applicable EURIBOR Interest Determination Date, such rate will be
               calculated by the Funding Note Calculation Agent and will be the
               arithmetic mean of at least two quotations obtained by the
               Funding Note Calculation Agent after requesting the principal
               Euro-zone (as defined below) offices of four major banks in the
               Euro-zone interbank market to provide the Funding Note
               Calculation Agent with its offered quotation for deposits in
               Euros for the period of the Index Maturity specified on the face
               hereof, commencing on the applicable Interest Reset Date, to
               prime banks in the Euro-zone interbank market at approximately
               11:00 A.M., Brussels time, on the applicable EURIBOR Interest
               Determination Date and in a principal amount not less than the
               equivalent of $1 million in Euros that is representative for a
               single transaction in Euro in the market at that time. If fewer
               than two such quotations are so provided, the rate on the
               applicable EURIBOR Interest Determination Date will be calculated
               by the Funding Note Calculation Agent and will be the arithmetic
               mean of the rates

                                       18
<Page>

               quoted at approximately 11:00 A.M., Brussels time, on such
               EURIBOR Interest Determination Date by four major banks in the
               Euro-zone for loans in Euro to leading European banks, having the
               Index Maturity specified on the face hereof, commencing on the
               applicable Interest Reset Date and in a principal amount not less
               than the equivalent of $1 million in Euros that is representative
               for a single transaction in Euros in the market at that time. If
               the banks so selected by the Funding Note Calculation Agent are
               not quoting as mentioned above, EURIBOR will be EURIBOR in effect
               on the applicable EURIBOR Interest Determination Date.

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

     (H)  PRIME RATE NOTE. If the Interest Rate Basis is the Prime Rate, the
          Funding Note shall be deemed to be a "Prime Rate Note". A Prime Rate
          Note will bear interest for each Interest Reset Date calculated with
          reference to the Prime Rate and the Spread or Spread Multiplier, if
          any, subject to the Minimum Interest Rate and/or Maximum Interest
          Rate, if any, specified on the face hereof. The Funding Note
          Calculation Agent will determine the Prime Rate for each Interest
          Reset Date on each applicable Interest Determination Date. The
          Interest Determination Date is the Business Day immediately preceding
          the related Interest Reset Date. "Prime Rate" means (1) the rate on
          the particular Interest Determination Date as published in H.15(519)
          under the caption "Bank Prime Loan", or (2) if the rate referred to in
          clause (1) is not so published by 3:00 P.M., New York City time, on
          the related Funding Note Calculation Date, the rate on the particular
          Interest Determination Date as published in H.15 Daily Update, or such
          other recognized electronic source used for the purpose of displaying
          the applicable rate, under the caption "Bank Prime Loan", or (3) if
          the rate referred to in clause (2) is not so published by 3:00 P.M.,
          New York City time, on the related Funding Note Calculation Date, the
          rate on the particular Interest Determination Date calculated by the
          Funding Note Calculation Agent as the arithmetic mean of the rates of
          interest publicly announced by each bank that appears on the Reuters
          Screen US PRIME 1 Page (as defined below) as the applicable bank's
          prime rate or base lending rate as of 11:00 A.M., New York City time,
          on that Interest Determination Date, or (4) if fewer than four rates
          referred to in clause (3) are so published by 3:00 P.M., New York City
          time, on the related Funding Note Calculation Date, the rate on the
          particular Interest Determination Date calculated by the Funding Note
          Calculation Agent as the arithmetic mean of the prime rates or base
          lending rates quoted on the basis of the actual number of days in the
          year divided by a 360-day year as of the close of business on that
          Interest Determination Date by three major banks (which may include
          affiliates of the Agents) in The City of New York selected by the
          Funding Note Calculation Agent, or (5) if the banks so selected by the
          Funding Note Calculation Agent are not quoting as mentioned in clause
          (4), the Prime Rate in effect on the particular Interest Determination
          Date. "Reuters Screen US PRIME 1 Page" means the

                                       19
<Page>

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

     (I)  TREASURY RATE NOTE. If the Interest Rate Basis is the Treasury Rate,
          the Funding Note shall be deemed to be a "Treasury Rate Note". A
          Treasury Rate Note will bear interest for each Interest Reset Date at
          the interest rate calculated with reference to the Treasury Rate and
          the Spread or Spread Multiplier, if any. The Funding Note Calculation
          Agent will determine the Treasury Rate on each Treasury Rate
          Determination Date (as defined below). "Treasury Rate" means (1) the
          rate from the auction held on the Treasury Rate Interest Determination
          Date (the "Auction") of direct obligations of the United States
          ("Treasury Bills") having the Index Maturity specified on the face
          hereof under the caption "INVESTMENT RATE" on the display on Moneyline
          Telerate (or any successor service) on page 56 (or any other page as
          may replace that page on that service) ("Moneyline Telerate Page 56")
          or page 57 (or any other page as may replace that page on that
          service) ("Moneyline Telerate Page 57"), or (2) if the rate referred
          to in clause (1) is not so published by 3:00 P.M., New York City time,
          on the related Funding Note Calculation Date, the Bond Equivalent
          Yield (as defined below) of the rate for the applicable Treasury Bills
          as published in H.15 Daily Update, or another recognized electronic
          source used for the purpose of displaying the applicable rate, under
          the caption "U.S. Government Securities/Treasury Bills/Auction High",
          or (3) if the rate referred to in clause (2) is not so published by
          3:00 P.M., New York City time, on the related Funding Note Calculation
          Date, the Bond Equivalent Yield of the auction rate of the applicable
          Treasury Bills as announced by the United States Department of the
          Treasury, or (4) if the rate referred to in clause (3) is not so
          announced by the United States Department of the Treasury, or if the
          Auction is not held, the Bond Equivalent Yield of the rate on the
          particular Interest Determination Date of the applicable Treasury
          Bills as published in H.15(519) under the caption "U.S. Government
          Securities/Treasury Bills/Secondary Market", or (5) if the rate
          referred to in clause (4) is not so published by 3:00 P.M., New York
          City time, on the related Funding Note Calculation Date, the rate on
          the particular Interest Determination Date of the applicable Treasury
          Bills as published in H.15 Daily Update, or another recognized
          electronic source used for the purpose of displaying the applicable
          rate, under the caption "U.S. Government Securities/Treasury
          Bills/Secondary Market", or (6) if the rate referred to in clause (5)
          is not so published by 3:00 P.M., New York City time, on the related
          Funding Note Calculation Date, the rate on the particular Interest
          Determination Date calculated by the Funding Note Calculation Agent as
          the Bond Equivalent Yield of the arithmetic mean of the secondary
          market bid rates, as of approximately 3:30 P.M., New York City time,
          on that Interest Determination Date, of three primary United States
          government securities dealers (which may include the Agents or their
          affiliates) selected by the Funding Note Calculation Agent, for the
          issue of Treasury Bills with a remaining maturity closest to the Index
          Maturity specified on the face hereof, or (7) if the dealers so
          selected by the Funding Note Calculation Agent are

                                       20
<Page>

          not quoting as mentioned in clause (6), the Treasury Rate in effect on
          the particular Interest Determination Date.

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

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

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

               The "Treasury Rate Determination Date" for each Interest Reset
               Date means the day in the week in which the related Interest
               Reset Date falls on which day Treasury Bills are normally
               auctioned (i.e., Treasury Bills are normally sold at auction on
               Monday of each week, unless that day is a legal holiday, in which
               case the auction is normally held on the following Tuesday,
               except that the auction may be held on the preceding Friday);
               PROVIDED, HOWEVER, that if an auction is held on the Friday of
               the week preceding the related Interest Reset Date, the Interest
               Determination Date will be the preceding Friday.

     (J)  REGULAR FLOATING RATE NOTE. Unless the Funding Note is designated as a
          Floating Rate/Fixed Rate Note or an Inverse Floating Rate Note, or as
          having an Addendum attached or having other/additional provisions
          apply, in each case relating to a different interest rate formula, the
          Funding Note that bears interest at floating rates will be a Regular
          Floating Rate Note and will bear interest at the rate determined by
          reference to the applicable Interest Rate Basis or Bases plus or minus
          the applicable Spread, if any, and/or multiplied by the applicable
          Spread Multiplier, if any. Commencing on the first Interest Reset
          Date, as specified on the face hereof, the rate at which interest on a
          Regular Floating Rate Note is payable will be reset as of each
          Interest Reset Date; PROVIDED, HOWEVER, that the interest rate in
          effect for the period, if any, from the date of issue to the first
          Interest Reset Date will be the Initial Interest Rate.

     (K)  FLOATING RATE/FIXED RATE NOTE. If the Funding Note is designated as a
          "Floating Rate/Fixed Rate Note" on the face hereof, the Funding Note
          that bears interest at floating rates will bear interest at the rate
          determined by reference to the applicable Interest Rate Basis or Bases
          plus or minus the applicable Spread, if any, and/or multiplied by the
          applicable Spread Multiplier, if any. Commencing on the first Interest
          Reset Date, the rate at which interest on a Floating Rate/Fixed Rate
          Note is payable will be reset as of each Interest Reset Date;
          PROVIDED, HOWEVER, that the interest rate in effect for the period, if
          any, from the date of issue to the first Interest Reset Date will be
          the Initial Interest Rate, as specified on the face hereof; and the
          interest rate in effect commencing on the Fixed Rate

                                       21
<Page>

          Commencement Date will be the Fixed Interest Rate, if specified on the
          face hereof, or, if not so specified, the interest rate in effect on
          the day immediately preceding the Fixed Rate Commencement Date.

     (L)  INVERSE FLOATING RATE NOTE. If the Funding Note is designated as an
          "Inverse Floating Rate Note" on the face hereof, the Inverse Floating
          Rate shall be equal to the Fixed Interest Rate minus the rate
          determined by reference to the applicable Interest Rate Basis or Bases
          plus or minus the applicable Spread, if any, and/or multiplied by the
          applicable Spread Multiplier, if any; PROVIDED, HOWEVER, that interest
          on an Inverse Floating Rate Note will not be less than zero.
          Commencing on the first Interest Reset Date, the rate at which
          interest on an Inverse Floating Rate Note is payable will be reset as
          of each Interest Reset Date; PROVIDED, HOWEVER, that the interest rate
          in effect for the period, if any, from the date of issue to the first
          Interest Reset Date will be the Initial Interest Rate.

     SECTION 4. OPTIONAL REDEMPTION. If any Initial Redemption Date is specified
on the face hereof, Global Funding may redeem the Funding Note prior to the
Stated Maturity Date at its option on any Business Day on or after the Date
Initial Redemption in whole or from time to time in part in increments of $1,000
or any other integral multiple of an authorized denomination specified on the
face hereof at the applicable Redemption Price (as defined below) together with
any unpaid interest accrued on the Funding Note, any Additional Amounts and
other amounts payable with respect thereto, as of the Redemption Date. Unless
otherwise specified in the Funding Note Indenture or on the face hereof, Global
Funding shall give a notice of such redemption to the Holder of any portion of
the Funding Note to be redeemed not more than 60 nor less than 30 days prior to
the Redemption Date. "Redemption Price" means an amount equal to the Initial
Redemption Percentage specified on the face hereof (as adjusted by the Annual
Redemption Percentage Reduction, if applicable) multiplied by the unpaid
principal amount of the Funding Note to be redeemed. The Initial Redemption
Percentage, if any, shall decline at each anniversary of the Initial Redemption
Date by an amount equal to the applicable Annual Redemption Percentage
Reduction, if any, until the Redemption Price is equal to 100% of the unpaid
amount the Funding Note to be redeemed.

     SECTION 5. SINKING FUNDS AND AMORTIZING NOTE. Unless otherwise specified on
the face hereof or unless the Funding Note is an Amortizing Note, the Funding
Note will not be subject to, or entitled to the benefit of, any sinking fund. If
it is specified on the face hereof that the Funding Note is an Amortizing Note,
Global Funding will make payments combining principal and interest on the dates
and in the amounts set forth in the table appearing in SCHEDULE I, attached to
this Funding Note Certificate. If the Funding Note is an Amortizing Note,
payments made on the Funding Note will be applied first to interest due and
payable on each such payment date and then to the reduction of the unpaid
principal amount.

     SECTION 6. OPTIONAL REPAYMENT. If so specified on the face hereof, the
Holder or Holders of the Funding Note may require Global Funding to repay the
Funding Note on the Optional Repayment Date(s) specified on the face hereof, in
whole or from time to time, in part, in increments of U.S.$1,000 or any other
integral multiple of an authorized denomination

                                       22
<Page>

specified on the face hereof (PROVIDED that any remaining principal amount of
the Funding Note shall be at least U.S.$1,000 or any other integral multiple of
an authorized denomination specified on the face hereof), at a repayment price
equal to 100% of the unpaid principal amount of the Funding Note to be repaid,
together with unpaid interest accrued thereon to the Repayment Date (as defined
below) and any other amounts then due and owing. For the Funding Note or any
portion thereof to be so repaid, the Funding Note Indenture Trustee must receive
at its Corporate Trust Office not more than 60 nor less than 30 calendar days
prior to the applicable Repayment Date, a properly completed Option to Elect
Repayment form, which is attached hereto as Annex A, forwarded by the Holder or
Holders of the Funding Note. Exercise of such repayment option shall be
irrevocable. As used herein, the term "Repayment Date" shall mean the date fixed
for repayment in accordance with the repayment provisions specified above.

     SECTION 7. TAX REDEMPTION. If (i) Global Funding is required at any time to
pay Additional Amounts (as defined below) or if Global Funding is obligated to
withhold or deduct any United States taxes with respect to any payment under the
Funding Note, as set forth in the Funding Note Certificate, or if there is a
material probability that Global Funding will become obligated to withhold or
deduct any such United States taxes or otherwise pay Additional Amounts (in the
opinion of independent legal counsel selected by the Funding Agreement
Provider), in each case pursuant to any change in or amendment to any United
States tax laws (or any regulations or rulings thereunder) or any change in
position of the Internal Revenue Service regarding the application or
interpretation thereof (including, but not limited to, the Funding Agreement
Provider's or Global Funding's receipt of a written adjustment from the Internal
Revenue Service in connection with an audit) (a "Tax Event"), and (ii) the
Funding Agreement Provider, pursuant to the terms of the relevant Funding
Agreement, has delivered to the Owner notice that the Funding Agreement Provider
intends to terminate the relevant Funding Agreement pursuant to the terms of
such Funding Agreement, then Global Funding will redeem the Funding Note on the
Redemption Date at the Redemption Price together with any unpaid interest
accrued thereon, any Additional Amounts and other amounts payable with respect
thereto, as of the Redemption Date.

     Unless otherwise specified in the Funding Note Indenture or on the face
hereof, Global Funding shall give a notice of such redemption to the Holder of
the Funding Note to be redeemed not more than 75 days nor less than 30 days
prior to the Redemption Date; PROVIDED, that no such notice of redemption may be
given earlier than 90 days prior to the earliest day on which Global Funding
would become obligated to pay the applicable Additional Amounts were a payment
in respect of the Funding Note then due. Failure to give such notice to the
Holder of any portion of the Funding Note designated for redemption in whole or
in part, or any defect in the notice to any such Holder, shall not affect the
validity of the proceedings for the redemption of any other portion of the
Funding Note.

     SECTION 8. MODIFICATIONS AND AMENDMENTS. The Funding Note Indenture
contains provisions permitting Global Funding and the Funding Note Indenture
Trustee (1) without the consent of any Holder, to execute Supplemental Funding
Note Indentures for limited purposes and take other actions set forth in the
Funding Note Indenture, and (2) with the consent of the Holder or Holders of not
less than 66 2/3% of the outstanding principal amount of the Funding Note,
evidenced as provided in the Funding Note Indenture, to execute Supplemental
Funding Note Indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Funding Note Indenture or any
Supplemental Funding Note Indenture or modifying in any manner the rights of the
Holder or Holders of the Funding Note subject to

                                       23
<Page>

specified limitations.

     SECTION 9. OBLIGATIONS UNCONDITIONAL. No reference herein to the Funding
Note Indenture and no provision of the Funding Note or of the Funding Note
Indenture shall alter or impair the obligation of Global Funding, which is
absolute and unconditional, to pay the principal of, interest on, or any other
amount due and owing with respect to, the Funding Note at the places, at the
respective times, at the rate, and in the coin or currency, herein prescribed.

     SECTION 10. FUNDING NOTE COLLATERAL. Pursuant to the Funding Note
Indenture, Global Funding will pledge and collaterally assign the relevant
Funding Agreement(s) issued by the Funding Agreement Provider in connection with
the issuance of the Funding Note (each, a "Funding Agreement") to the Funding
Note Indenture Trustee. The Funding Note will be secured by the Security
Interest in the Funding Note Collateral in favor of the Funding Note Indenture
Trustee for the benefit of each Holder of the Funding Note and each other person
for whose benefit the Funding Note Indenture Trustee is or will be holding the
Funding Note Collateral (the "Secured Parties").

     SECTION 11. SECURITY; LIMITED RECOURSE. The Funding Note is solely the
obligation of Global Funding, and will not be guaranteed by any person,
including but not limited to the Funding Agreement Provider, any Allstate Life
Global Funding Trust, any Agent, the Global Funding Trust Beneficial Owner, the
Delaware Trustee, the Funding Note Indenture Trustee or any of their affiliates.
Global Funding's obligations under the Funding Note will be secured by all of
Global Funding's rights and title in one or more Funding Agreement(s) issued by
the Funding Agreement Provider and other rights and assets included in the
applicable Funding Note Collateral. The Holder or Holders of the Funding Note
have no direct contractual rights against the Funding Agreement Provider under
the Funding Agreement(s). Under the terms of each Funding Agreement, recourse
rights to the Funding Agreement Provider will belong to Global Funding, its
successors and permitted assignees. Global Funding has pledged and collaterally
assigned each Funding Agreement to the Funding Note Indenture Trustee and has
granted the Security Interest in the Funding Note Collateral to the Funding Note
Indenture Trustee for the benefit of the Secured Parties. Recourse to the
Funding Agreement Provider under each Funding Agreement will be enforceable only
by the Funding Note Indenture Trustee on behalf of the Secured Parties.

     SECTION 12. EVENTS OF DEFAULT. If one or more Events of Default, as defined
in the Funding Note Indenture, shall have occurred and be continuing with
respect to the Funding Note, then, and in every such event, unless the principal
of the Funding Note shall have already become due and payable, the entire
principal and premium (if any) of the Funding Note, any interest accrued
thereon, and any Additional Amounts due and owing and any other amounts payable
with respect thereto, may be declared to be, and upon any such declaration the
same shall become immediately, due and payable; provided that, with respect to
certain Events of Default, without any notice to Global Funding or any other act
by the Funding Note Indenture Trustee or any Holder of the Funding Note, the
entire principal and premium (if any) of the Funding Note, any interest accrued
thereon, and any Additional Amounts due and owing, and any other amounts payable
with respect thereto, shall become immediately due and payable without
presentment, demand, protest or other notice of any kind. If the Funding Note is
a

                                       24
<Page>

Discount Note, the amount of principal of the Funding Note that becomes due and
payable upon such acceleration shall be equal to the amount calculated as set
forth in Section 3 hereof.

     SECTION 13. WITHHOLDING; ADDITIONAL AMOUNTS. All amounts due in respect of
the Funding Note will be made without withholding or deduction for or on account
of any present or future taxes, duties, levies, assessments or other
governmental charges of whatever nature imposed or levied by or on behalf of any
governmental authority in the United States having the power to tax payments on
the Funding Note unless the withholding or deduction is required by law. Unless
otherwise specified on the face hereof, Global Funding will not pay any
Additional Amounts to the Holders of the Funding Note in the event that any
withholding or deduction is so required by law, regulation or official
interpretation thereof, and the imposition of a requirement to make any such
withholding or deduction will not give rise to any independent right or
obligation to redeem or repay the Funding Note and shall not constitute an Event
of Default.

     SECTION 14. LISTING. Unless otherwise specified on the face hereof, the
Funding Note will not be listed on any securities exchange.

     SECTION 15. NO RECOURSE. Notwithstanding anything to the contrary contained
in the Funding Note Indenture, or the Funding Note Certificate or Supplemental
Funding Note Indenture, none of the Funding Agreement Provider, its officers,
directors, affiliates, employees or agents, or any of the Delaware Trustee, the
Funding Note Indenture Trustee or the Global Funding Trust Beneficial Owner, or
any of their officers, directors, affiliates, employees or agents (the
"Non-recourse Parties") will be personally liable for the payment of any
principal, interest or any other sums at any time owing under the terms of the
Funding Note. If any Event of Default shall occur with respect to the Funding
Note, the right of the Holders of the Funding Note and the Funding Note
Indenture Trustee on behalf of such Holders in connection with a claim on the
Funding Note shall be limited solely to a proceeding against the Funding Note
Collateral. Neither the Holders nor the Funding Note Indenture Trustee on behalf
of the Holders will have the right to proceed against the Non-recourse Parties
to enforce the Funding Note (except that to the extent they exercise their
rights, if any, to seize the relevant Funding Agreement, they may enforce the
relevant Funding Agreement against the Funding Agreement Provider) or for any
deficiency judgment remaining after foreclosure of any property included in the
Funding Note Collateral.

     SECTION 16. GOVERNING LAW. Pursuant to Section 5-1401 of the General
Obligations Law of the State of New York, the Funding Note shall be governed by,
and construed in accordance with, the laws of the State of New York.

                                       25
<Page>

                                                                         Annex A

                            OPTION TO ELECT REPAYMENT

     The undersigned Holder of the Funding Note hereby irrevocably elects to
have Global Funding repay the principal amount of the Funding Note or portion
hereof at the optional repayment price in accordance with the terms of the
Funding Note.

    Date:
         ------------------------------
                                             Signature
                                             Sign exactly as name appears
                                             on the front of this Note
                                             Certificate [SIGNATURE
                                             GUARANTEED - required only if
                                             Funding Note is to be issued
                                             and delivered to other than
                                             the registered Holder]

                                             Fill in for registration of
                                             Funding Note if to be issued
                                             otherwise than to the
    Principal amount to be repaid,           registered Holder:
    if amount to be repaid is less
    than the principal amount of
    the Funding Note represented by
    this Note Certificate
    (principal amount remaining
    must be an authorized
    denomination)

    $
     ------------------------
                                             Name:
                                                  -------------------------

                                             Address:
                                                  -------------------------

                                                  ------------------------
                                                  (Please print name and
                                                  address including zip code)

                   Social Security or Other Taxpayer ID Number

                                       A-1
<Page>

                                                                      Schedule I

                               AMORTIZATION TABLE

<Table>
<Caption>
                      Date                                         Payment
--------------------------------------------------------------------------------
        <S>                                             <C>

</Table>

                                       I-1

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